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LATEST NEWS UPDATES | Slump in Agricultural Exports a Threat for Government’s Vision for Farmers -Sudhakar Gummula

Slump in Agricultural Exports a Threat for Government’s Vision for Farmers -Sudhakar Gummula

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published Published on May 27, 2016   modified Modified on May 27, 2016
-TheWire.com

The government wants to double farmer incomes by 2022, a feat that it cannot achieve without seriously tackling the current slump that has a direct impact on the sale of farming products.

As part of its recent budget, the central government announced its aim to double farmers’ incomes by 2022. To this end, the state of agricultural exports is an important factor which needs attention, as it creates an additional demand for farming products, directly leading to higher incomes for farmers. A look at recent trends in Indian agriculture exports shows that they reached a peak at $33 billion in 2013-14, and have subsequently fallen, reaching a five-year low of $24 billion during the fiscal year ending in March 2016. Although exports are an external demand, both external as well as domestic factors affect the overall performance of the sector.

Short-lived wheat exports

The sharp fall in global agricultural commodity prices – including wheat – has had a direct impact on Indian wheat exports, which plummeted to $151 million during April-March 2016 from the peak of $1.93 billion achieved during the period April-March 2013. High domestic prices aided by high minimum support prices and a shortfall in local production have made the Indian stint on the global wheat trade a short-lived one. The reluctance of the government to subsidise exports due to the local requirement of the commodity for public distribution purposes may keep India away from global markets for years to come, or at least until there is another boom in international prices.

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The Indian Express, 25 May, 2016, http://thewire.in/2016/05/25/slump-in-agricultural-exports-a-threat-for-governments-vision-for-farmers-38086/


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