Major Problems of Agricultural Export in India

1543 Words Apr 6th, 2011 7 Pages
Major Problems of Agricultural Export in India
India is one of the leading producers of certain agricultural commodities. For instance, India is the largest producer of milk, cashew nuts, coconuts, tea, the second largest producer of wheat, vegetables, sugar and fish and the third largest producer of tobacco and rice. It is understood that the developed countries which are interested in protecting their agriculture with various subsidies and trade barriers and they are anxious to push their farm exports. The developed countries provide more than $300 billion of subsidies every year to their agriculture. Under existing of WTO rules the maximum subsidies the E.U and the U.S can give as Amber box subsidies is $60 billion and $20 billion
…show more content…
While 20 per cent of the funds allocation for the scheme would be retained by the central government for direct support of critical infrastructure necessary to boost exports and the balance 80 percent would be disbursed through states. Fifty percent of the amount earmarked for disbursal through states would be allocated on the basis of export performance of the state concerned. The remaining half will be distributed uniformly on the basis of annual export growth. Funds from this ambitions scheme would flow into development of ports, roads, airports, development of cold chains and inland container depots (ICDs) with specific focus on project that could provide strong results. Refrigeration facilities for storage and transportation are critical for export of fruits and vegetables. Enough investment must be made to create adequate facilities. vii) Packaging is an important component to be successful in exports. Improving the availability of good quality packaging and related machinery is an important step. viii) Centre should ask the state government to set up institutional mechanism like Export Promotion Council and State Level Export Promotion Committee to implement the various export promotion
Open Document