Relevance: GS-3: Issues relating to poverty and hunger, Food processing and related industries in India- scope and significance, supply chain management

Key Phrases: Global Hunger, Food Crisis, Agriculture Export Policy, Product District Clusters, Country-wise Agri-export Strategies, Virtual Trade Fair, Farmer Connect portal, Multiplicity of Testing Standards, Pesticide Residue Problems

Why in News?

• Global hunger, which was earlier declining, has again started to rise in the past few years.
• Almost 800 million people go hungry every day and 50 million in 40-45 countries are on the verge of starvation.

Key Highlights:

• Extreme heat conditions and severe floods in several parts of the world have led to a decrease in the production of wheat and other crops.
• The impact is compounded by the war in Ukraine which is a major wheat-producing country.
• Thus, there could be an unprecedented food crisis engulfing the world next year if the war continues further.
• Less than 10 countries account for 90 percent of food exports and hence, when any one country faces a crisis, the consequences are felt across the world.

What can India do to alleviate hunger and boost farmers’ income?

• The agricultural policies in the recent past have been in the right direction which is reflected by an increase in farmers’ income by around 1.7 times since FY18 with a decisive upward shift in mean income, especially for the farmers who have engaged in cash crops.
• For the first time in 2021, agri-exports had crossed $50 billion, which is commendable considering the pandemic challenges.
• Following are some of the policy measures that have helped India increase the agri-exports:
  1. Cluster development:
     • As part of the Agriculture Export Policy, 46 unique product-district clusters have been identified for export promotion.
     • Some of the success stories include the Banana cluster (Ananthpur); the Pomegranate cluster (Maharashtra) and the Rose onion cluster (Karnataka).
  2. Country-Specific Strategy:
     • An interaction was carried out with 60 Indian Missions in various countries to identify the products, their potential, and the way forward for preparing country-wise agri-export strategies.
  3. Virtual buyer-seller meets:
     • 24 such meets were organised with various countries and E-catalogues were released, with details of participant exporters, importers, and trade associations.
  4. Virtual trade fair (VTF):
     • APEDA took an initiative to develop its own VTF application.
     • The virtual platform provides an opportunity for agri importers of several countries and exporters from India to interact.
  5. Consultation with Agri cells at different embassies of India:
     • APEDA is consulting 13 Agri cells in different countries, seeking inputs on a real-time basis to further strengthen the existing market intelligence cell.
  6. Farmer Connect portal:
     • The portal has been set up on APEDA’s website for providing a platform for FPOs/FPCs, and cooperatives to interact with exporters.
  7. Technological Innovations in Agriculture:
     • Technological innovations like solar power for irrigation pumps and cold storage, genome-editing, and digitisation along the value chain have led to a reduction in emissions while also raising productivity.
  8. Role of Government Schemes:
     • The government has started several excellent initiatives such as the ‘One District One Product’ scheme, upgradation of individual micro-food processing units, support to farmer producer organisations, the backward and forward linkages scheme, etc. playing a crucial role in increasing the farmer's income.
  9. Focus on new products:
     • Efforts have been made to expand India’s export basket of agricultural products. The following are a few examples:
     • The first consignment of red rice was shipped to the US which is an iron-rich variety of rice grown in Brahmaputra valley, Assam.
     • India recently gained market access for pomegranate in Australia; mango and basmati rice in Argentina; carrot seeds in Iran; wheat flour, basmati rice, and soyabean oilcake in Uzbekistan; and oranges in Serbia.

What are the issues faced by Indian Agri exports?

1. Pesticide residue problems:
   • The pesticide residue problem has affected basmati rice exports to the EU.
   • Now, Export Inspection Council testing has been made mandatory for basmati exports to the EU,
   • APEDA, in collaboration with trade bodies, has taken measures to create awareness in the basmati growing areas.
2. Food processing Industry at a nascent stage:
   • Despite abundant horticultural produce, India lags behind when it comes to the export of processed fruits/vegetables as well as processed food.
   • They contribute merely 4 percent of the total agricultural exports of the country.
   • This is way below compared to done by Brazil (30 percent), the US (70 percent), and Malaysia (82 percent).
3. Sourcing of raw materials from middlemen:
   • Exporters in India source their raw materials from middlemen or mandis who having incomplete knowledge about the farm products, compromise with food safety requirements.
4. Multiplicity of Testing Standards:
   • An issue in the food and beverage industry is the multiplicity of testing standards, with bodies like FSSAI for imports and the domestic market and APEDA and EIC for exports.
   • This creates confusion among farmers when it comes to following standards for domestic and external markets, and leads to ambiguity in food standards.

Way Forward:

• There is a lot of scope for R&D in agriculture, especially in the development of high-yielding seeds, the creation of an efficient plant disease forecast system, and effective post-harvest management.
• While national food security is important, there’s a need to focus on value-added exports in food processing.
• The various stakeholders in the supply chain need to work together to make the various government initiatives a success.

Source: The Hindu BL

Mains Question:

Q. Global hunger, which was earlier declining, has again started to rise in the past few years. In this context, what are the various challenges being faced by Indian Agri exports? Suggest the way forward in order to make India a global leader in ensuring food security.