Rising Re to drag down agri exports
India's farm exports will bear the brunt of an appreciating rupee, with exporters expecting a slowdown in growth and decline in margins in the face of the rupee strengthening to below the 40-to-a-dollar mark.
By PTI |
NEW DELHI: India's farm exports will bear the brunt of an appreciating rupee, with exporters expecting a slowdown in growth and decline in margins in the face of the rupee strengthening to below the 40-to-a-dollar mark.
“The appreciating rupee will certainly impact the country’s agricultural exports,” Agriculture and Processed Food Products Export Development Authority (Apeda) chairman KS Money said one the sidelines of a Ficci seminar. He said since India’s imports of agricultural products is less than exports, the impact would be more profound.
India’s agricultural exports increased from Rs 39,863.31 crore in 2004-05 to Rs 49,802.92 crore in 2005-06. During April-September 2006-07, value of agricultural exports was Rs 28,157.52 crore, and that compared with Rs 21,673.25 crore for the corresponding period of last year, registering a growth of 29.9%.
Marine products such as, oil meals, rice, wheat, tea, coffee, cashew and sugar dominate country’s agricultural exports.
Mr Money emphasised on connecting farms to big retail markets. “Investments in retail sector is necessary. If we invest in retail, export of Apeda-monitored products can increase five-fold,” he said.
Exports for Apeda-monitored products stood at over Rs 20,000 crore last fiscal, he added.
Listing the strategies to be adopted for tapping the global market, he said adherence to international standards and safety norms have occupied centre stage. There was a need to bridge the disconnect between production and markets and to focus on cluster-based development, he said.
“The appreciating rupee will certainly impact the country’s agricultural exports,” Agriculture and Processed Food Products Export Development Authority (Apeda) chairman KS Money said one the sidelines of a Ficci seminar. He said since India’s imports of agricultural products is less than exports, the impact would be more profound.
India’s agricultural exports increased from Rs 39,863.31 crore in 2004-05 to Rs 49,802.92 crore in 2005-06. During April-September 2006-07, value of agricultural exports was Rs 28,157.52 crore, and that compared with Rs 21,673.25 crore for the corresponding period of last year, registering a growth of 29.9%.
Marine products such as, oil meals, rice, wheat, tea, coffee, cashew and sugar dominate country’s agricultural exports.
Mr Money emphasised on connecting farms to big retail markets. “Investments in retail sector is necessary. If we invest in retail, export of Apeda-monitored products can increase five-fold,” he said.
Exports for Apeda-monitored products stood at over Rs 20,000 crore last fiscal, he added.
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“Whole world is a market. If you are competent, if you are efficient then market share is not a problem,” the Apeda chief said. Listing the strategies to be adopted for tapping the global market, he said adherence to international standards and safety norms have occupied centre stage. There was a need to bridge the disconnect between production and markets and to focus on cluster-based development, he said.
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