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Food Agriculture in the Emerging decade

EXPORTS SCENARIO. Current Exports: April 09-March 10 US$ 178.7 BillionTarget for current year US$ 200 BillionShare in World Exports: 1.5%Ranking in World Exports: 26Exports as % of GDP : 20%Employment in exports :175 MillionExports Target for 2020 : 5% of World Trade . Composition of Trade.

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Food Agriculture in the Emerging decade

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    1. FEDERATION OF INDIAN EXPORT ORGANISATIONS(fieo) Food & Agriculture in the Emerging decade/India: Trade abroad

    2. EXPORTS SCENARIO Current Exports: April 09-March 10 US$ 178.7 Billion Target for current year US$ 200 Billion Share in World Exports: 1.5% Ranking in World Exports: 26 Exports as % of GDP : 20% Employment in exports :175 Million Exports Target for 2020 : 5% of World Trade

    3. Composition of Trade Commodity %Share AGRI & ALLIED PRDTS 7.07% MARINE PRODUCTS 1.17% ORES & MINERALS 4.88% LEATHER & MNFRS 1.88% GEMS & JEWELLERY 16.23% CHEMICALS & PRDTS 13. 64%

    4. Composition of Trade(Contd.) ENGINEERING GOODS 18.31% ELECTRONICS 3.16% TEXTILES,CARPTES AND HANDICRAFT 11.23% COTTON RAW INCL. WASTE 1.15% PETROLEUM PRODUCTS 15.75% OTHERS 4.80%

    5. Direction of Trade 1) Europe 21.56% EU Countries (27) 20.17% Other WE Countries 1.33% East Europe 0.07% 2) Africa 5.77% Southern Africa 1.85% West Africa 1.76% Central Africa 0.20% East Africa 1.97%

    6. Direction of Trade(Contd.) 3) America 15.04% North America 11.56% Latin America 3 .48% 4) Asia & ASEAN 53.94% East Asia 0.95% ASEAN 10.12% WANA 22.02% NE Asia 16.11% South Asia 4.73%

    7. Direction of Trade(Contd.) 5) CIS & Baltics 0.94% CARs Countries 0.15% Other CIS Countries 0.79% 6) Other Countries 2.75%

    8. Food and Agriculture High volatility in commodity prices Ban on exports of certain commodities Global economic growth, increasing population in developing countries to drive demand for commodities Food and food security to remain a challenge for developing countries for generations to come

    9. Food and Agriculture Share of natural resources in world trade has risen sharply in recent years Natural resources endowments- blessing or curse? Blessing- comparative advantage and critical to economic growth, and curse- trapping them in a state of under-development

    10. Food and Agriculture In the 31 block of OECD countries, most distortive form of support still continues 9 years since Doha development round has failed to make a dent on this- subsidies have only gone up The fall in (farm goods) prices at the end of 2008 has led to concerns about the impact of the future market volatility on the ability of producers to expand output, on an environmentally sustainable basis, in response to growing demand ( World Trade Report-2010)

    11. Food and Agriculture In India, the public investment in farm and farm research is abysmally low(0.6% of GDP in 2008-09 vs. 1.4% in 80-81) leading to stagnant growth rate ( 2-3 %) 20% of GDP supports more than half the population India grows 12 and 14% of worlds fruits and vegetables respectively whereas the exports are only 1.5% of worlds exports (mainly to west asia and east europe) Wastage around 40% due to lack of post- harvest management techniques

    12. Food and Agriculture The investment in agriculture has stagnated at around 0.6 % of GDP since 1999, whereas, the food subsidy has rocketed from around 9200 crores to around 47000 crores(0.76% of GDP).

    13. Food and Agriculture Export strategy for Mango (India produces 54% of worlds production), Banana including its value added products (India is the largest producer) and Litchi (produced only in Indian sub-continent) required to create a win-win situation.

    14. Floriculture- out of US$ 17 billion of world export, Indias share is $ 80 million (despite one of the highest acreage) All this calls for targeted interventions Food and Agriculture

    15. Food and Agriculture Investments for improvements in pre and post harvest technology and management systems, strengthening the cold chain system, maintaining the quality standards and farmers awareness, R&D, strengthening the role of Agri Export Zones (AEZ) Internal demand has failed to accelerate agriculture income growth FTAs and RTAs for more and diversified market access

    16. . THANK YOU

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