(GIST OF YOJANA) Opportunities and Challenges in India's Food Export

GIST OF YOJANA : Opportunities and Challenges in India's Food Export

JUNE-2025

Opportunities and Challenges in India's Food Export

Context:

India is one of the top ten agricultural product exporters in the world but has only a 2.4% share of the total global agricultural exports. This makes one realise the extent of our untapped potential. The Agricultural Export Policy 2018 aimed to achieve $60 billion in agricultural exports by 2022; however, the target remains unmet. In 2023-24, the exports were $48.8 billion as compared to $53.2 billion in the previous fiscal year, with an 8% decline. This highlights the need for a drastic intervention and promotion in our agricultural exports.

Government Initiatives to Promote Food Exports

To promote and export agricultural products from India, the Government of India has come up with a few schemes.

Agriculture Export Policy (AEP) 2018: Diversify the export basket and destinations, promote high-value-added agricultural exports and promote the exports of indigenous, organic, traditional and non-traditional agricultural products.
Financial Assistance Schemes (FAS): Financial assistance to exporters for export infrastructure development, quality improvement, and market development.
Trade Infrastructure for Export Scheme (TIES): Grant-in-aid for export-related infrastructure involving the development of common infrastructure facilities.
Market Access Initiatives (MAI) Scheme: Provides for continuous export promotion of India through grant-in-aid to various agencies for undertaking market development activities.
Agricultural and Processed Food Products Export Development Authority (APEDA): Promotes the export of agricultural products (including millets) from India and also offers market intelligence, quality certifications, and export promotion services.

The Role of Circular Economy Practices in Stimulating Food Processing and Food Exports of India

Connecting India’s food export with circular economy practices involves several strategies, and the potential areas for the circular economy in India’s food export.

Sustainable Food Production: Circular Economy practices help to implement sustainable agricultural practices such as organic farming, permaculture and regenerative agriculture to reduce the environmental impact of food production for exports. There is a growing international market for organically grown food products.
Value-Added Products and By-Products: Circular Economy practices focus on the value addition of food products and marketing the by-products to reduce the wastage of food products. Thus, implementing circular economy practices in the food processing industry can not only reduce waste but also create new business opportunities.
Closed-Loop Systems: Closed-loop systems help to avoid food wastage and also conserve resources by continuously cycling them back into production. Innovations meant to reduce food waste throughout the supply chain reduce costs and environmental impact. Circular waste management practices can reduce agricultural and food waste and create new revenue streams.
Packaging Innovation: Converting to sustainable packaging materials like biodegradable and compostable products from plastic packaging supports the circular economy. Such eco-friendly and green packaging solutions through innovations reduce waste and protect the environment.
Supply Chain Optimisation: Following circular economy practices helps in reducing food waste, energy consumption and transportation costs and optimises the supply chain.
Collaboration and Partnerships: Circular economy practices promotes collaboration among stakeholders, including the farming community, food processors and retailers.

Conclusion:

By connecting India's food export with circular economy practices, the country can reduce waste, increase efficiency, and improve sustainability. While enhancing competitiveness and creating new business opportunities, it safeguards our environment from detrimental impacts. All these will ultimately increase our earnings through food exports.