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On the overall impact of export curbs, former union agriculture and food processing secretary Siraj Hussain, also a former CMD of Food Corporation of India (FCI), told businessline in an interview that high food prices are harmful for small and marginal farmers, as they are net buyers of food. Excerpts:
Is the current curb on agri exports a temporary phase due to the election or a permanent policy of calibrated export through a single door?
The restrictions imposed by the government were triggered by an unusually hot February in 2022, which resulted in lower wheat production. This forced the government to ban the export of wheat on May 13, 2022. Since then, erratic monsoons in 2022 and 2023 have contributed to reduced production of various crops, including pulses, rice and, sugarcane. Therefore, it cannot be said that the restrictions imposed by government are only due to general elections which are due in April May 2024.
How will this single door export policy through NCEL impact in the long run?
I do not think that NCEL alone can export the entire quantity of agricultural exports of India. At present, exports are restricted on a diplomatic basis, and only NCEL has been allowed by the government to export. Once the normal production levels of wheat, rice, and sugarcane are achieved, private companies will need to be permitted to export. In any case, NCEL does not have the expertise and experience in global trade. It would be using private trade as sub-contractors.
Will farmers get better price due to curbs on export? Why and how?
It is true that restrictions and bans on exports depress domestic prices and therefore, they are harmful for farmers who produce surpluses. However, we must remember that India has a large number of small and marginal farmers who are net buyers of food. High food prices are, therefore, harmful for them. The government has to do a fine balancing between the interest of producers and consumers. The most important thing is the predictability of government policy on export and use of Essential Commodities Act. Sadly, this is missing.
What are the alternatives for farmers who grow certain crops for exports and then those are banned?
In many parts of India, farmers have diversified to grow horticultural crops. For example, in Tamil Nadu and Maharashtra, banana cultivation has increased substantially. To promote the export of horticultural produce, much higher investment is needed in logistics. This has not quite materialised so far, as a result of which there is huge fluctuation in prices. Right now, the kinnow growers of Punjab are realising low prices compared to previous years.
Will India achieve $100 billion agri export?
India has varied agro-climatic zones that can enable the country to grow various crops, from cereals to horticulture to plantation, etc. Indian producers can also become competitive in the export of poultry and buffalo meat. To achieve $100 billion exports, we need consistent export policy and modern infrastructure for logistics. The government has to take lead in this by providing grants to APMCs to create the required facilities so that export-oriented products do not deteriorate in quality.
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