Centre plans to amend AEZ scheme to boost farm exports

The government is planning to bring about some changes in the agriculture export zone (AEZ) scheme in order to boost farm exports.


NEW DELHI: The government is planning to bring about some changes in the agriculture export zone (AEZ) scheme in order to boost farm exports. The commerce ministry has also asked exporters to help prepare a strategy to increase growth in exports of agricultural products.

According to commerce and industry minister Kamal Nath, some policy changes would be made in the AEZ scheme to make it more effective. The AEZ scheme was formulated in 2001 focusing on specific crops grown in specific regions, but has not been able to show much result due to lack of funds and government attention.

The government had promised to help develop the AEZs by helping in the provision of requisite infrastructure. Speaking at an awards function organised by the Fieo, Mr Nath said that India needed to focus on increasing agriculture exports. “Our agriculture sector has not yet been able to get engaged with the world. We have to look at ways to make the sector more efficient,” he said.

The minister asked Fieo to conduct a study on how to increase agriculture exports like processed food and primary agricultural products over the next five years by roping in other agencies like APEDA.

“The agriculture sector has to be sustainable in India. With 650 million people engaged in agriculture contributing just 23% of GDP, there is a need to focus on identifying areas for increasing the agricultural exports so that agriculture also engages in the global economy,” he said.

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Mr Kamal Nath urged exporters not to just concentrate on increasing the weight of the export basket but also put more items in the basket and look for new markets. “In the recent years we have started looking at countries in Africa, CIS and the Pacific-Caribbean region. While individually these may not be big markets, they add up to big numbers,” the minister said.
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