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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