TPCI puts forward a strategy to boost agricultural exports

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TPCI – the Indian Trade promotion body recently put forward a five pronged strategy to the government, including compulsory pre-export certification and revamping SEZ policy for food sector, to expand outbound shipments of agricultural goods. The Trade Promotion Council of India (TPCI) informed that India has the potential to increase agri exports to $100 billion (about 7.10 lakh crore) in the near future.

It proposed 100 per cent pre-export certification, increasing customer base, branding, strengthening last mile connectivity for agri produce, and revamping SEZ policy for food exports. “Before trading in a new market, most countries demand that your products conform to national and international standards. As a result, your products need to be designed and tested so that they can be sold in your target countries without hassles,” TPCI Chairman Mohit Singla shared.

He further explained that pre-export certification will make sure the regulatory compliance for products and meet the needs of the nations the exporters want to ship. “If this is ensured, the quality of our product will also fetch premium value for food and beverage exports. The mandatory 100 percent pre-export certification will create the brand as a reliable and good quality exporter,” he added.

To enhance consumer base, the government should help companies to manufacture different products which suit the worldwide demands, Singla said.

He added that giving the last-mile connectivity to the Agri produce from the nation is the need of the hour and crucial for exports.

“Our farm produce such as pepper, cardamom, cashew, is either undervalued in the global market or overvalued domestically as in case of most of the spices which fail to get a market for exports,” he said. For special economic zones (SEZ), he said the lack of incentives for manufacturing and exports of value-added food and beverages is inhibiting global players from coming to India to set up facilities. A foreign investor should be allowed to import raw material at zero duty and avail duty rebate proportionate to value addition, he said. “Also, foreign investors should be incentivised by lower duty on value addition they achieve, especially for the food sector where duty is already high,” he said.