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A separate panel set aside by Gov for rice exports under APEDA

Why was a separate panel set up?

APEDA, an agri-export promoting body, under which the center set up a panel in order to increase rapidly the rice shipments after Prime Minister conducted a meeting and as a response to it, the meeting was held on May 2.
 
What things were discussed under the meeting?

It was proposed to create a commodity-specific board or say councils and was discussed. There was a demand from the non-basmati exporter's side to create a separate board because of the main focus of APEDA only being for basmati rice.
 
What did the Commerce Ministry speak on this?

Because no of items like buffalo meat, products that are processed and even floriculture are looked after by APEDA, the commerce ministry presented their view that when additional boards will be created, it will ensure the dilution of the role. Amid various goods that Agricultural and Processed Food Products Export Development Authority (APEDA) looks after, 60 % share is shared by rice and buffalo meat exports.
 
What did APEDA say on this?

According to an official of APEDA, he stated that because there are already tea, coffee, rubber, and spices boards, taking away rice and buffalo meat from APEDA will leave APEDA virtually with no work. According to him, a separate board constitution wasn’t the solution for increasing exports since various other factors are involved as well.
Minimum support price-fixing has been a major hurdle and challenge every year for exporters as it is rising irrespective of prices of the international market. Although they have supported plans set up by the government in order to double farmer’s income which can be done via DBT as well. BV Krishna Rao, a president of Rice Exporters Association, also a member of the Rice Export Promotion Forum, which was set up under the APEDA chairman’s chairmanship. The Forum members being exporters, Centre officials, and states.
 
How is India doing in terms of agri-products export?

Due to policy changes that occur suddenly, importing countries don’t consider India as a sustainable destination for buying agri-products. Sudden policy changes such as shipment restrictions placed because of an increase in price in any commodity, in the domestic marketing sector.
 
Likewise, non-basmati rice exports of India have dropped significantly i.e. 41% reaching about 4.5 million tons in FY20. Kakinada-based Rice Exporters’ Association reported this. In June of last year, the association had taken help by seeking the constitution of a separate board for non-basmati rice, such as Tea Board.  Commerce Ministry’s attention drew to it, in order to address issues that exist among various ministries and state governments.
 
During FY 19, rice exports of India remained $7.77 billion among which $4.72 billion belonged to basmati rice while $3.05 billion being belonged to non-basmati rice. Exports decreased by almost 18% (y-o-y) at $5.3 billion, $3.4 billion was for basmati while $1.63 billion for non-basmati.
 
3.7 million tons of rabi rice has been procured by The Food Corporation of India going against the 11.3 million tons target setup. Both Kharif and rabi rice purchase reaching 44.6 million tones, this year, as on May 11. It broke the record of 44.5 million tons that was procured in 2018/19 during the entire season i.e. October to September.
 
Procurement of wheat being at no peak being at about 26 MT as collected information on May 11, that is against 30 MT in time period year-ago. The reasons being start that was delayed, social distancing norms that were enforced at centers for purchasing. 97% of wheat that arrived was bought by FCI at its centers a year ago, it was 95%. Following a demand of farmers, quality norms have been relaxed by the central agency. The farmers were demanding for grains with luster loss( shining less with shelf life reduced) to be bought because rains off season affected wheat crops at several places.
 
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