Maharashtra Agri Export Policy

Draft Agriculture Export Policy (AEP) of Maharashtra State

Draft

Agriculture Export Policy (AEP) of

Maharashtra State

Prepared by

Maharashtra State Agricultural Marketing Board

(MSAMB)

20-09-2019

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 2

Agriculture Export Policy (AEP)

For Maharashtra State

INDEX

S. No. Title Page No.

1 Introduction 3

2 Maharashtra: Advantage for Agriculture Export Hub 5

3 Aims & Objectives 9

4 Current Agriculture Trade Scenario of Maharashtra 10

5 Elements of Maharashtra State Agriculture Export Policy

Framework

15

6 Strategic Recommendations 16

6.1 Policy Measures 16

6.2 Stable Trade Policy Regime 16

6.3 Reforms in APMC Act in Maharashtra 17

6.4 Infrastructure and Logistics 18

6.5 Holistic Approach To Boost Exports 19

6.6 Greater Involvement Of State Governments In Agriculture Exports 20

6.6.1 Identification of a Nodal State Department / Agency for

Promotion of Agriculture Export

20

6.6.2 Inclusion of Agricultural Exports in the State Export Policy 21

6.6.3 Institutional Mechanism at State Level and Cluster Level to

Support Exports

21

6.6.4 Cluster Facilitation Cell 23

7 Operational Recommendations 24

7.1 Focus on Clusters 24

7.2 Promoting Value Added Product Export 27

7.3 Skill Development 30

7.4 Market Development 31

7.5 Attract Private Investments in Export Oriented Activities and

Infrastructure

32

7.6 Ease of Doing Business (EoDB) & Digitization 33

7.7 Developing Sea Protocol 34

7.8 SPS and TBT Response Mechanism 35

7.9 Traceability System 36

7.10 Importing Export Oriented Germplasm & Planting Material 36

7.11 Research and Development 37

7.12 Use of Agri-Start-Up Fund 38

Annexure – I 39

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 3

1. INTRODUCTION:

Agriculture is the mainstay of the state of Maharashtra. Maharashtra’s economy is

predominantly agrarian. It is the main occupation of the people. Both food crops and cash

crops are grown in the state. Principal crops include rice, jowar, bajra, wheat, pulses,

turmeric, onions, cotton, sugarcane and several oil seeds including groundnut, sunflower and

soybean. The state has huge areas, under fruit cultivation of which mangoes, bananas, grapes,

and oranges are the main ones. The agriculture in state is predominantly rain-fed. The state

has 24 per cent of drought—prone area of the country. However state has potential for growth

in agricultural sector in spite of challenges.

Agriculture & allied activities sector plays an important role in the economic development of

the State. The share of agriculture & allied activities sector in the total Gross State Value

Added (GSVA) is about 12.2 per cent during 2016-17 as against 15.3 per cent during 2001-

02 which shows declining trend over the period, whereas major portion of the population is

still dependent on this sector. Reduction in average size of agricultural holdings, increasing

number of marginal &small farmers, dependency on monsoon & weather, low productivity

are the major concerns of the agriculture sector in the State.

Though, the share of the allied activities in the Agriculture & allied activities sector is

comparatively less, its contribution with reference to livelihood is of immense importance.

The increasing consumption of fruits & vegetables, milk & milk products, poultry, meat, fish

and flowers due to changing lifestyle indicates substantial growth potential. This potential

needs to be tapped to the greater extent for enhancing farmers’ income.

The vast production base offers India tremendous opportunities for export. During 2018-19,

India exported fruits and vegetables worth Rs. 10236.93 crores/ 1,469.33 USD Millions

which comprised of fruits worth Rs. 4817.35 crores/ 692.01 USD Millions and vegetables

worth Rs. 5419.48 crores/ 777.25 USD Millions. India is not only the largest producer of

cereal as well as largest exporter of cereal products in the world. India’s export of cereals

stood at Rs. 56,841.08 crore / 8,180.87 USD Millions during the year 2018-19. Rice

(including Basmati and Non-Basmati) occupy the major share in India’s total cereals export

with 95.7% during the same period. Whereas, other cereals including wheat represent only

4.3 % share in total cereals exported from India during this period. India’s exports of

Processed Food was Rs. 31111.90 Crores in 2018-19, which including the share of products

like Mango Pulp, Processed Vegetables, Cucumber and Gherkins ( Prepd. & Presvd),

Processed Fruits, Juices & Nuts, Pulses, Groundnuts, Guargum, Jaggery & Confectionary,

Cocoa Products, Cereal Preparations, Alcoholic Beverages, Miscellaneous Preparations, and

Milled Products.

The nation’s export trade depends largely on agricultural sector. For example, agricultural

commodities such as jute, tobacco, spices, oilseeds, raw cotton, tea as well as coffee, fruits &

vegetables etc. accounts for approximately 18 % of the entire value of exports of a country.

This demonstrates that agriculture products also continue to be important source of earning a

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 4

country foreign exchange. This helps to reduce countries unfavorable balance of payments as

well as saving foreign exchange. This amount may be well used to import other essential

inputs, machinery, raw-material, and other infrastructure that is helpful for the support of

country’s economic development.

Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to

reach US$ 38.21 billion in FY18. Between Apr 2018-Feb 2019 agriculture exports were US$

34.31 billion. India is also the largest producer, consumer and exporter of spices and spice

products. Spice exports from India reached US$ 3.1 billion in 2017-18. Though India’s share

in the global market is still nearly 2.2% only, there is increasing acceptance of horticulture

produce from the country. This has occurred due to concurrent developments in the areas of

state-of-the-art cold chain infrastructure and quality assurance measures.

The agriculture export from India, as per the category of importing countries is as under. This

shows that there is wide scope for export to developed countries, where returns of the export

are much more than the developing or least developing countries. To increase the export to

developed countries, integrated efforts are required.

Category Qty (MTs) Qty (%) Value (Rs. Crores) Value

(%)

Developing Countries 14465897 63 89930 69

Developed Counties 2363892 10 22014 17

Least Developing Countries 6180225 27 17870 14

Maharashtra is leading state in the country for export of agriculture produce. In the

horticulture crops, Maharashtra ranks 1st in many fruits like grapes, pomegranate, banana etc.

and in many vegetables too. State has in the top positions in production of Cereals, pulses,

oilseeds, dairy products, fisheries and animal products. Maharashtra has got location

advantage for agriculture export along with infrastructure. If more integrated efforts are put

into, Maharashtra will become the export hub of agro produce from the country. To integrate

these efforts of various stakeholders, Maharashtra State has developed this Agriculture

Export Policy for the state, in accordance with the Agriculture Export Policy developed by

Department of Commerce, Government of India.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 5

2. MAHARASHTRA: ADVANTAGE FOR AGRICULTURE EXPORT HUB:

1. Maharashtra is the third largest state in area and second largest state in population of

India. It has an area of 307,713 sq. km. with 36 districts, 355 blocks and 43565

villages and a population of 11.24 Crores. The 54% population of the state is rural.

All the districts of Maharashtra are grouped into six divisions: Aurangabad Division,

Amravati Division, Konkan Division, Nagpur Division, Nashik Division and Pune

Division.

2. Maharashtra is situated in the western region of the country a long coastline stretching

nearly 720 km along the Arabian Sea. It is surrounded by Gujarat to the North West,

Madhya Pradesh to the north, Chhattisgarh to the east, Telangana to the south east,

Karnataka to the south and Goa to the south west.

3. Maharashtra’s State’s contribution to all India nominal GDP is highest at 14.4 per

cent in 2017-18. As per the first revised estimates, Nominal Gross State Domestic

Product (GSDP) for 2017-18 is ` 24,11,600 crore as against 21,88,532 crore for 2016-

17. Real GSDP is 19,42,769 crore for 2017-18 as against 18,06,581 crore for 2016-17.

The Per capita State Income for 2017-18 is 1,76,102 as against 1,62,005 for 2016-17.

It is home to some of the largest corporate in the country.

4. The State ranks 11th in average size of operational holding (1.34 ha) amongst all

states, as per Agriculture Census 2015-16. The total area of small & marginal (upto

2.0 ha) operational holdings was 92.20 lakh ha constituting 45.0 per cent of the total

area whereas number of small and marginal operational holdings was 121.55 lakh

which is 79.5 per cent of the total number of operational holdings.

5. Maharashtra has the largest economy in India. Although Maharashtra is a highly

industrialized state of India, agriculture continues to be the main occupation in the

state. Maharashtra’s economy is primarily agricultural and rural. Agriculture is major

occupation of the people in Maharashtra. Both food and cash crops are grown in the

State.

6. The state has nine agro climatic zones favorable for cultivating multiple crops, fruits

and vegetables round the year.

7. The state produce variety of cereals, fruits, vegetables fisheries and livestock

Principal crops of Maharashtra include rice, jowar (sorghum), bajra (pearl millet),

pulses, and sugarcane and oil seeds such as groundnut, sunflower and soybean. The

state has huge areas under fruit and vegetable cultivation with large production of

fruits such as mangoes, bananas, grapes, oranges, sapota, custard apple, papaya and

largest producer of vegetables such as onion and tomatoes.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 6

8. Agricultural Marketing in Maharashtra:

a. Maharashtra is the leading state in implementation of Agriculture Marketing

Systems as compared to other states in the country. The regulatory aspects of

Agrculture Marketing are taken care by Directorate and Marketing and the

developmental aspect is taken care by Maharashtra State Agricultural

Marketing Board (MSAMB). Maharashtra has adopted the provisions of

Model Act for developing alternatives for farmers to sell their produce.

b. The Maharashtra State Agricultural Marketing Board is mainly entrusted with

activities such as keeping necessary co-ordination in working of market

committees (307 Main Market Yards, 597 Sub Market Yards), development &

promotional activities of Agriculture Produce Marketing Committees

(APMC), establishment of agro-export zones, horticultural training centers and

grading & packing facilities, etc. The quantity and value of arrivals in all the

market committees in the state in 2017-18 is 184.41 Lakh MTs worth Rs.

51,093 Crores.

c. NITI Aayog launched in 2016 an index (Agricultural Marketing and Farmer

Friendly Reforms Index (AMFFRI)) to rank States and UTs based on

implementation of seven provisions proposed under model APMC Act like

joining e-NAM initiative, special treatment to fruits and vegetables for

marketing and level of taxes in mandis. These indicators reveal ease of doing

agribusiness as well as opportunities for farmers to benefit from modern trade

and commerce and have wider option for sale of her/his produce. These

indicators also represent competitiveness, efficiency and transparency in agri.

markets.

d. The State of Maharashtra achieved first rank in implementation of various

reforms. The State has implemented most of the marketing reforms and it

offers best environment for doing agri-business among all the States/UTs.

9. Fruits and vegetables are de-notified by way of Maharashtra Ordinance dtd. 5 July

2016 and incorporated in the APMC Act vide Government Gazette dtd. 12 January

2017. If the trade takes place outside mandi yard there is no need to pay mandi fees.

Under the Maharashtra Agricultural Produce Marketing (Development & Regulation)

Act, the number of direct marketing licenses issued upto 19th November, 2018 was

981. Apart from these, 52 private market licenses have been issued.

10. As per the Agricultural Marketing and Farmer Friendly Reforms Index compiled by

NITI Aayog in 2016, the State achieved first rank in the implementation of the

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 7

marketing reforms and it offers best environment for doing agri-business among all

the States/UT’s.

11. e-NAM is a pan-India electronic trading portal which networks the existing APMC

mandis to create a unified national market for agricultural commodities. This provides

a single window service for all APMC related information & services and includes

commodity arrivals & prices, buy & sell trade offers, provision to respond to trade

offers. While material flow of agriculture produce continues through mandis, an

online market reduces transaction costs and information asymmetry. Under the e-

NAM, in all 60 market committees have been included in Maharashtra in two phases.

Gate entry, e-auction and e-payment have been started in 30 market committees in

first phase. In second phase, gate entry in 30 market committees has been started out

of which e-payment has been started in 21 market committees. At the end of

November, 2018, around 30 lakh quintal of grains have been e-auctioned amounting

to 865 crore. Around Rs. 22.34 crore of e-payment has been done in 29 market

committees. In 59 market committees, e-single labs have been established to monitor

quality of agriculture goods.

12. Over this period from year 1970 to 2016, the average size of land holding decreased

from 4.24 ha to 1.34 ha in Maharashtra. Therefore, for attaining significant volumes

of high quality produce of the same variety and to acquire considerable negotiation

capacities, the farmers’ groups / Farmer Producer Organizations need to be

established. They shall be promoted for the Farmer Producer Companies, under

Section IX-A of the Companies Act. Around 1749 FPCs are registered in

Maharashtra. If they are nurtured and trained, can be utilized as a best resource for

developing backward and forward linkages and will become financially viable.

13. The state has a well-developed social, physical and industrial infrastructure. Apart

from 16 airports, the state has two major and 48 minor ports. Biggest International

Airport like Mumbai connecting all the major cities across the world and the

Jawaharlal Nehru Port Trust (JNPT), handling major export consignments of the

country is in Maharashtra.

14. Potential for setting up of Food Processing Industry in Maharashtra. Largest

contributor to India’s GSDP, a large industrial base with 14.4% share of India

Industrial sector. Mumbai, the capital of Maharashtra houses the headquarters of most

of the major corporate & financial institutions. Well-developed infrastructure,

abundant natural resources, connectivity to all major areas and skilled human resource

make it an ideal investment destination. Major strength of Maharashtra’s food

processing industry lies Cereals- Rice, wheat, Maize; Nutri-cereals- Pearl millet

(Bajra) and Sorghum other small millets, Fruits and Vegetables – Mangoes, Bananas,

Grapes, Oranges, Onion and Tomatoes; Oilseeds- Groundnut, Sunflower and

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 8

Soybean, Pulses- Pigeon pea, Chickpea, Green gram (Moong), Black gram (Moth),

Commercial crop- Sugar, cotton; Livestock & fisheries: Milk, fisheries, meat and eggs

etc.

15. The State’s agricultural export policy has drafted by increased emphasis given to

technology transfer to farmers for globally competitive production in terms of quality

and post-harvest. The post harvest handling, value addition, processing, scientific

storage, modern marketing system and export promotion are the main features of the

policy. The components considered are extra sensitive towards the need of techno-

infrastructure and market intelligence, product development and product promotion.

16. As a short-term policy, it is proposed to undertake studies to scientifically define the

constraint and identify the alternative solutions for encouraging exports by making

gap analysis in infrastructure, technology and trained manpower and to identify areas

requiring policy and institutional reforms. Organizing awareness campaign for the

farmers of the State for the new regime of International markets, tackling the issues of

export quality production, PHM, packaging, processing and marketing, diversification

of agriculture towards horticulture, medicinal and aromatic plants, spices etc.,

application of IT in agriculture marketing for addressing mass of farming community

for transfer of technology, capacity building for extension workers and giving due

importance to frontier technology as R & D policy should be the ingredients of this

agri-exports revolution in the state.

17. Long term policy for agri-exports is based upon setting quality parameters for various

agricultural produce on scientific lines, standardization of production technology for

export quality production at globally competitive prices to serve dual purpose of

protecting domestic market from imported farm produce and getting increased access

to export market, mapping of PHM infrastructure such as cold chain, sorting and

grading / pack houses, packaging, transport and storage and marking gap analysis,

identifying the need for varietal changes in crops from point of view of requirement of

end user, identification of technology gap in production, plant protection, PHM,

processing etc., market sector reforms for domestic marketing system, setting a

system for market survey, market intelligence, market information, product

development, product promotion in place – especially with respect to transit markets

and export destinations, application of IT in agriculture extension and information

dissemination, assessment of HRD needs in changed scenario and increased

participation of private sector and women.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 9

3. AIMS & OBJECTIVES:

The Maharashtra State Agriculture Export Policy is framed with a focus on agriculture export

oriented production, export promotion, better farmer realization and synchronization within

policies and programs of Government of India and Government of Maharashtra. It is focused

to have a “Farmers’ Centric Approach” for improved income through active involvement of

farmers in export.

The broad objectives and vision of the Maharashtra State Agriculture Export Policy is

highlighted below.

1. To make Maharashtra as an Agri. Export Hub of a country.

2. Entrepreneurship development in Agri. Export in the state of Maharashtra.

3. To diversify export basket, destinations and boost high value and value added

agricultural exports including focus on perishables.

4. To promote novel, indigenous, organic, ethnic, traditional and non-traditional

Agri products exports.

5. Creation of efficient export oriented infrastructure and utilization of existing

infrastructure.

6. To provide an institutional mechanism for pursuing market access, tackling barriers

and deal with sanitary and phyto-sanitary issues.

7. Provide support to stakeholders for making product competitive in export markets.

8. Skill development of the concerned stakeholders in the agri. export.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 10

4. CURRENT AGRICULTURE TRADE SCENARIO OF MAHARASHTRA:

Agriculture is the mainstay of the state of Maharashtra. Maharashtra’s economy is

predominantly agrarian. It is the main occupation of the people. Both food crops and cash

crops are grown in the state. Principal crops include rice, jowar, bajra, wheat, pulses,

turmeric, onions, cotton, sugarcane and several oil seeds including groundnut, sunflower and

soybean. The state has huge areas, under fruit cultivation of which mangoes, bananas, grapes,

and oranges are the main ones. The total irrigated area which has been used for crop

cultivation is 33,500 square kilometers. The agriculture in state is predominantly rain-fed.

The state has 24 per cent of drought-prone area of the country. However state has potential

for growth in agricultural sector in spite of challenges.

Agriculture & allied activities sector plays an important role in the economic development of

the State. The share of agriculture & allied activities sector in the total Gross State Value

Added (GSVA) is about 12.2 per cent during 2016-17 as against 15.3 per cent during 2001-

02 which shows declining trend over the period, whereas major portion of the population is

still dependent on this sector. Reduction in average size of agricultural holdings, increasing

number of marginal &small farmers, dependency on monsoon & weather, low productivity

are the major concerns of the agriculture sector in the State.

Though, the share of the allied activities in the Agriculture & allied activities sector is

comparatively less, its contribution with reference to livelihood is of immense importance.

The increasing consumption of fruits & vegetables, milk & milk products, poultry, meat, fish

and flowers due to changing lifestyle indicates substantial growth potential. This potential

needs to be tapped to the greater extent for enhancing farmers’ income.

The land utilization statistics for 2016-17 depicts that of the total 307.58 lakh ha geographical

area of the State, the gross cropped area was 232.24 lakh ha while the net area sown was

169.10 lakh ha (55.0 per cent).

Sustainable Development Goals envisages promotion of sustainable agriculture and ensuring

availability & sustainable management of water. Accordingly, the major initiatives like,

enhancement of crop productivity, improving yield and quality of horticulture & floriculture,

reducing cost of cultivation, integrated farming system approach, promotion of group

farming, soil & water conservation for moisture security, creation of quality infrastructure for

storage and processing to control wastage, post-harvest technology for value addition,

promotion of value addition chain, promoting export of agriculture produce, agriculture credit

and risk mitigation are incorporated in the Vision 2030 document of the State.

Horticulture holds on an average 30 per cent share in Gross State Value Added (GSVA) of

crop sector.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 11

Area and production of principal kharif crops in Maharashtra (2017-18):

Crop Area (‘000 Ha) Production (‘000 MTs)

Rice 1,425 2668

Jowar 565 547

Bajra 788 669

Ragi 93 106

Maize 695 2166

Other Cereals 42 21

Total Cereals 3608 6177

Tur 1375 1250

Moong 432 159

Udid 351 121

Other Pulses 81 54

Total Pulses 2239 1584

Total Foodgrains 5847 7761

Soybean 3694 3805

Groundnut 240 275

Sesamum 27 5

Nigerseed 13 2

Sunflower 16 8

Other Oilseed 6 1

Total Oilseeds 3996 4096

Cotton (Lints)* 4351 6094

Sugarcane** 902 83138

Total Sown Area 15096

** Harvested Area

* Production of Cotton in ‘000 bales of 170 kg each.

Source: Commissionerate of Agriculture, GoM

Area and production of principal rabi crops in Maharashtra (2017-18):

Crop Area (‘000 Ha) Production (‘000 MTs)

Jowar 2899 1842

Wheat 1138 1885

Maize 334 905

Other Cereals 7 4

Total Cereals 4378 4636

Gram 2234 2049

Other pulses 102 51

Total Pulses 2336 2100

Total Foodgrains 6714 6736

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 12

Sesamum 4 1

Safflower 39 21

Sunflower 24 12

Linseed 11 3

Rapeseed & Mustard 7 2

Total Oilseeds 85 39

Total 6799

Source: Commissionerate of Agriculture, GoM

Area and production of Horticulture crops in Maharashtra (2017-18):

Crop Area (‘000 Ha) Production (‘000 MTs)

Fruits 735.18 11728.66

Vegetables 726.20 12306.72

Condiments & Spices 34.37 370.70

Plantation Crops 220.72 361.07

Flowers* 5.49 86.07

* Include cut and loose flowers

Source: NHB, GoI

Maharashtra – An advantage for Export:

The share of Maharashtra state in the country’s agriculture export is considerable because of

many factors, which can be enlisted as under:

• Maharashtra has typical monsoon climate, with hot, rainy and cold weather seasons.

Tropical conditions prevail all over the state. Hence wide range of commodities

available. Both food crops and cash crops are grown in the state.

• Availability of Good Quality Produce.

• Availability of Infrastructure – pilot projects for post harvest handling, as per the

protocols of importing countries are available.

• India’s biggest Sea Port (JNPT) and International Airport (Chhatrapati Shivaji

International Airport) are in and around Mumbai.

• Farmers have easy adoptability of new technology and Package of Practices.

• Majority of the agri. exporters are having their set up in Mumbai, Pune and Nashik.

• Major catchment areas like Gujarat, Karnataka, Andhra Pradesh etc. are directly

linked with Mumbai by Road, Rail and Airways.

• Export from Maharashtra (considering exit ports in Maharashtra) is almost more than

50% and even more than 75% in case of Grapes, Mangoes, Pomegranate, Flowers,

Raisins etc.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 13

Export of agro commodities from Maharashtra as compared to India

Year 2015-16 2016-17 2017-18

No. Commodity State / Country Quantity Qty % Value Value % Quantity Qty % Value Value % Quantity Qty % Value Value %

1 Mango Maharashtra 24243 66.73 259 81.70 37180 69.92 368 82.51 35342 71.86 309 80.82

India 36329 317 53177 446 49180.48 382.34

2 Grapes Maharashtra 145830 93.36 1518 97.87 187296 80.41 1960 93.87 200203 93.36 2105.55 98.11

India 156203 1551 232940 2088 214440.6 2146.21

3 Banana Maharashtra 34915 37.28 115 32.30 38487 34.71 130 33.51 44559.26 43.98 149.35 42.82

India 93665 356 110872 388 101314.4 348.77

4 Orange Maharashtra 149 0.43 0.77 1.08 788 1.64 3.84 3.28 786.24 4.97 4.53 13.00

India 34522 71.29 48110 117 15835.15 34.84

5 Pomegranate Maharashtra 24355 78.39 354 85.10 29568 59.43 371 75.71 32652.49 68.98 412 76.62

India 31070 416 49755 490 47335.7 537.72

6

Raisins

(Manuka) Maharashtra 26009 96.97 197.44 96.78 30042 97.36 261 97.03 24434.25 95.60 230.98 96.63

India 26823 204 30858 269 25558.49 239.03

7 Rose (Flowers) Maharashtra 934 47.22 26.86 47.84 907.32 44.70 26.56 46.22 877.01 34.85 24.84 42.86

India 1978 56.14 2030 57.46 2516.79 57.95

8 Rose (Saplings) Maharashtra 13.93 61.80 0.7 60.34 22.84 78.35 1.09 77.30 37.78 83.16 1.81 82.65

India 22.54 1.16 29.15 1.41 45.43 2.19

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 14

Year 2015-16 2016-17 2017-18

No. Commodity State / Country Quantity Qty % Value Value % Quantity Qty % Value Value % Quantity Qty % Value Value %

9 Mango Pulp Maharashtra 15288 11.86 123 15.45 20470 15.64 168 19.86 20659.41 18.62 155.79 23.12

India 128866 796 130885 846 110923.7 673.92

10 Onion Maharashtra 781393 65.05 1590 57.88 1310274 54.24 1704 54.86 1054618 66.37 1971.66 63.83

India 1201245 2747 2415755 3106 1588986 3088.82

11

Other

vegetables (exl.

Onion)

Maharashtra

167376 23.92 727 34.31 196477 19.33 822 29.03 194232.6 25.15 838.17 40.05

India 699600 2119 1016435 2832 772448.1 2092.95

12

Other

processed fruits

& Veg (exl .

Mango Pulp)

Maharashtra

116931 36.46 1042 35.93 120326 33.86 1058 33.60 119043.2 30.42 1069.64 31.42

India 320732 2900 355314 3149 391283.8 3404.72

13

Dried

vegetables in

air tight

packages

Maharashtra

14118 21.33 206 22.54 16404 18.90 250 23.11 10215 19.32 128 22.38

India 66180 914 86790 1082 52880 572

Consolidated

Statistics State /

Country Quantity Qty % Value Value % Quantity Qty % Value Value

% Quantity Qty % Value Value %

Maharashtra 1351554 48.32 6159 49.48 1988242 43.86 7123 47.90 1737660 51.52 7401 54.50

India 2797235 12448 4532950 14871 3372749 13581

Source: Commissionerate of Agriculture, GoM

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 15

5. ELEMENTS OF MAHARASHTRA STATE AGRICULTURE EXPORT POLICY

FRAMEWORK:

The State Agriculture Export policy recommendations are organized in two broad categories:

strategic and operational. The salient features of the agricultural export policy are highlighted

below and discussed in greater detail in subsequent sub-sections.

A. Strategic:

1. Policy Measures

2. Stable Trade Policy Regime

3. Reforms in APMC Act in Maharashtra

4. Infrastructure and Logistics Support

5. Holistic Approach to boost exports

6. Active involvement of Government of Maharashtra in Agri Exports

B. Operational:

1. Focus on Clusters

2. Promoting Value Added Product Export

3. Skill Development

4. Market Development

5. Attract Private Investments in Export Oriented Activities and Infrastructure

6. Ease of Doing Business (EoDB) & Digitization

7. Developing Sea Protocol

8. SPS and TBT Response Mechanism

9. Traceability System

10. Importing Export Oriented Germplasm & Planting Material

11. Research and Development

12. Use of Agri-Start-Up Fund

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 16

6. STRATEGIC RECOMMENDATIONS:

As mentioned in the Agriculture Export Policy led down by Department of Commerce,

Government of India, top exportable agricultural commodities and products has been identified

on the basis of current global and Indian trade. Each commodity has been studied in detail based

on five key criteria: India’s current potential, India’s Production, Maharashtra’s share, Export

from India, Current Destinations, Major importing countries, their Supplier countries, our Target

Countries, future market potential, interventions required (Infrastructure/ Capacity Building /

Market Access etc) global trade, and. Some major potential commodities have been shortlisted as

focus commodities for specific farm, infrastructure and market intervention. Accordingly the

Product-Market Mix is prepared which is attached in Annexure – I.

6.1 Policy Measures:

To boost agricultural exports, general and commodity specific measures will be identified and

implemented at little to no financial cost, on urgent basis. e.g. use of scientific Packhouses for

packing of material for export consignments, to ensure quality, residue level, emphasis on

registration of more and more farms under Hortinet system etc.

6.2 Stable Trade Policy Regime:

The changes in export regime on ground of domestic price fluctuations, religious and cultural

belief can have long term repercussions. Such measures require constant fine tuning and keep the

market anxious which often leads to price shocks. While these decisions may serve the immediate

purpose of maintaining domestic price stability, they end up distorting India’s image in

international trade as a long term and reliable supplier. It is necessary to refrain from making a

distinction between the products meant for export and those for domestic consumption. This will

provide the farmer some confidence to plan for the overseas market.

Providing assurance that the processed agricultural products and all kinds of organic products will

not be brought under the ambit of any kind of export restriction (viz. Minimum Export Price,

Export duty, Export bans, Export quota, Export capping, Export permit etc.) even though the

primary agricultural product or non-organic agricultural product is brought under some kind of

export restrictions. Therefore State Government will give confidence to the exporters, processors

of agricultural products and all kinds of organic products, about the stable Trade Policy Resume

for export of their produce.

In the Agri Export Policy of DoC, GoI, it is mentioned that few commodities which are essential

for food security will be identified in consultation with the relevant stakeholders and Ministries.

Any export restriction on such identified commodities under extreme price situation will be based

on decision of a high level committee. Therefore Government of Maharashtra will precisely

analyze and forecast the situation of production of such crops (i.e. onion) which will help in

taking decisions at central level. Policy related issues will be discussed at State Level Steering

cum Monitoring Committee.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 17

6.3 Reforms in APMC Act in Maharashtra:

Maharashtra Agricultural Produce Marketing (Development and Regulation) Act 1963 has been

amended in Maharashtra, as per the Model Act given by Government of Maharashtra, to develop

parallel options for farmers to sell their produce. As per NITI Aayog, the State of Maharashtra

achieved first rank in implementation of various marketing reforms. The State has implemented

most of the marketing reforms and it offers best environment for doing agri-business among all

the States/UTs. This amendment in act enabled following measures:

• Direct marketing.

• Private markets.

• Farmer-Consumer Markets.

• Single License System

• Special Commodity Markets

• Contract farming.

• APMC Secretary Panel

Moreover, State Government incorporated other Amendments:

• Provision of e-Trading (Implementing Electronic National Agriculture Market – e-

NAM system in 60 APMCs on pilot basis)

• Market yard to be area of operation

• Single point levy of market fee across the State

• Deregulation of Fruits and Vegetables outside market yard.

• Commission charges to be paid by purchaser.

• Election Reforms – Agriculturist members to be elected directly by an agriculturist

who is not less than 18 years of age, holding minimum 10 R land and who has sold

his / her notified agriculture produce at least 3 times in preceding 5 years.

These amendments enabled farmers more flexibility / options to sell their produce without

being subjected to regulations constraining decision to buy and sell. Exporters are now

making Contract farming with growers directly. Exporter getting quality and consistent

supply, growers are getting assured market with pre-determined rates. Exporters buying the

produce from growers directly, this leads to understanding of requirements of international

markets by growers, thus market led production is improving. As the exporters are buying the

produce at farm gate, the risk of post harvest losses during transit and market fluctuations are

reduced at the part of farmers.

The awareness about these developments will be done through capacity building program of

stakeholders. The handholding support will be provided to the farmers/their cooperatives/

farmer producer companies/groups, as an ease of doing business. Any issues in this regard

will be discussed and resolved in the Cluster Facilitation Cell proposed in this State

Agriculture Policy. Policy related issues will be discussed at State Level Steering cum

Monitoring Committee.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 18

6.4 Infrastructure and logistics:

With the globalization of production, and supply and retail chains, ensuring the safety and

quality of products is vital. Developing countries like India must be able to prove to establish

conformity to international standards and/or those applied in importing countries and

reliability to maintain high-quality certification and inspection procedures. For the same post

harvest management is the important factor to maintain. Need of the infrastructures in

agriculture exports are the pre-requisites for post harvest management, inspection and

certifications. Post-Harvest Infrastructure supports smooth logistical movement of agri

produce. This will have a direct co-relationship in increasing export volumes, assuring quality

& ensuring better price realization per unit. Better quality compliance, Facilitates smooth

logistic handling which offers opportunities for expanding the Sourcing/Catchment area,

warehouse facilities in the importing countries where India is a major exporter of agricultural

products, would help increase the current exports to that country.

The originations at APEDA, at Central level and Maharashtra State Agricultural Marketing

Board (MSAMB), at state level has been actively involved in creation of pilot infrastructure

for horticulture produce to improve quality and value addition of produce and to achieve

optimum shelf life resulting into increased quality exports of Indian agriculture produce.

Recently, major focus has been laid to encompass setting up of processing units for

horticulture and agriculture produce and also strengthen the infrastructure at exit point ports.

The gaps in the infrastructure, i.e. farm gate infrastructure / common infrastructure, will be

identified by the State Level Steering cum Monitoring Committee with the support of cluster

facilitation cell in respective areas of the state and accordingly the feasibility of the

infrastructure shall be studied. This shall ensure the reduction in post harvest losses, pest and

disease free supply, residue monitoring of export consignments etc., in compliance with

international markets, to boost the export as per international market requirements. Some of

the illustrations in infrastructure development are as under.

a. Packhouses and Cold Chain: Need of setting up of intermediate storage; setting

up of mechanized handling facilities such as sorting, grading, washing, waxing,

ripening, packing, palletization, pre cooling, cold storage, pre-shipment treatment

such as fumigation, x-ray screening, specialized storage facilities such as CA,

MA, etc. are needed to be created as per the need of the cluster.

b. Special infrastructure: Special infrastructures like Vapor Heat Treatment,

Irradiation Facilities, Hot Water Treatments and Cold Water Treatment Facilities,

Dehydration, IQF, Ripening etc. to enable exports of specific commodities may be

created, as per demand of the trade.

c. Exit Point Infrastructure: Based on stakeholders’ feedback, there is need for a

multi-commodity pack house for storing perishable and semi-perishable

commodities at ports to decrease the transit time taken from entering the port to

shipment. Need for a parallel line for entry of perishable commodities into the port

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 19

along with other commodities is also felt as entry to the port is identified as a

major reason for loss of perishable crops.

Identify major ports where current/projected bulk and container agri traffic

demands infrastructure and modernization initiatives. Development of

Infrastructure at Exit point ports like at JNPT and at International Airports like

Mumbai, Pune, Nashik, Nagpur & Aurangabad as per the requirements of the

trade. Identify the challenges of operationalizing existing defunct infrastructure /

its modification – automization at ports such as the Centre for Perishable Cargo

(CPC) and requirement of new CPCs, designated and sufficient quarantine areas,

Pallet container handling system, Automatic storage retrieval system at

International & Domestic Airports would increase efficiency / cost effectiveness

of export through air cargo.

d. Infrastructures at Railway stations: to handle agri. produce i.e. for onion,

banana, and oranges etc.

e. Processing infrastructure: Infrastructure for processing of agro commodities are

also to be developed, as per the need of the trade.

f. Testing Labs: Testing Labs are also need to be established and strengthened as

per the international market requirements. Leaf and Tissue Analysis labs, Residue

testing labs, Food Testing labs- to check quality standards of food material

targeted for exports, upgraded and advanced Soil & Water Testing labs. This shall

undertake establishment of such facilities in public / private partnership in a

phased manner.

g. Refrigerated Transport Vehicles: To reduce the post-harvest losses during

transit, the cold / refrigerated vehicles are required for perishable produce.

h. Infrastructure abroad: Essential infrastructure facilities for various agriculture

products in the importing countries where India is a major exporter of agricultural

products would provide edge over competitors. It would help exporters to provide

consistent supplies, maintain inventory and reduce distribution costs.

Efforts will be to attract private investments in export oriented infrastructure at larger scale.

Involvement of private sector since the initial planning of the infrastructure, results in efficient

infrastructure which lead to boost the agri. Export from Maharashtra. This shall undertake

establishment of such facilities in public & private partnership in a phased manner.

6.5 Holistic approach to boost exports

Targeting global market needs holistic approach which will ensure that the supply chain

remains lean, responsive, transparent throughout the value chain, compliant with regulatory

bodies and invoke quality, ensuring brand image is maintained. For the same the convergence

has prime most importance, in terms of their resources & efforts. The activities of various

ministries / departments / Institutions of Government of India are needed to be converged. i.e.

DAC&FW, DAHDF, DGFT, Food Safety and Standards Authority of India (FSSAI),

Department of Agricultural Research and Education (DARE) / Indian Council of Agricultural

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 20

Research (ICAR), MoFPI, Ministry of Shipping & Transport, Ministry of Railways, Ministry

of Civil Aviation Department of Consumer Affairs (DoCA), Department of Food and Public

Distribution (DFPD), Agriculture Uiversities, Electricty Department, Public Works

Department, Krishi Vigyan Kendras (KVKs), , .

Many activities are to be implemented with number of organizations, like market access for

any of the international market for specific products; the regulatory aspects shall be taken

care by Plant Protection Department while the trade coordination shall be taken care by

APEDA. Similarly such role can be played by State Agriculture Department towards

strengthening backward linkages and Maharashtra State Agriculture Marketing Board for

forward linkages. This will ensure strategic and operational synergy across the state.

Convergence of externally assisted POCRA, SMART, MAGNET etc. projects, various

schemes of Government of India and Government of Maharashtra shall be ensured.

6.6 Greater involvement of State Governments in Agriculture Exports:

Since India’s independence, agriculture is a “State” subject and trade & commerce is under

Central Government. However, if there is a subject of International market, then there is need

of precise and efficient coordination between Central and State efforts. Every State has a

different (and often multiple) agro-climatic zone leading to different cropping patterns.

Therefore state’s role in deciding in agri. export policy is crucial. The package of practices,

post harvest management, farmers’ awareness, infrastructure, logistics etc. varies as per state.

Hence role of Government of Maharashtra is important. Hence active involvement of State

Government is committed as per the set of activities led down in this State Agri Export

Policy.

6.6.1 Identification of nodal State Department / Agency for promotion of agriculture

export:

Depending on the export potential of the State and the quality of resources available with

autonomous bodies, either a Department or an Agency of the State Govt. could be declared as

a nodal body for agricultural exports, As mentioned in India’s Agri. Export Policy. However

we propose special State Export & Processing Promotion Board / Corporation may be

established and can be declared as a nodal agency for implementation of Agri Export Policy

in Maharashtra. The function of such nodal agency would be to remain engaged with the

stakeholders, identify infrastructure and logistic bottlenecks, liaise with different

Departments within the State Government and with Central Ministries / departments/

organizations to address issues faced by the exporters, identification of the schemes run by

various Central Ministries and Agencies and maximize the allocation for the State

Governments; coordinate, implement, monitoring of activities mentioned in this state

agriculture export policy and responsibilities given by State Level Steering Committee. Nodal

agency would also work towards creation of dynamic and functional information-sharing

mechanism between the State and Centre on various issue including SPS and TBT issues.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 21

APEDA is the central level agency coordinating & monitoring the activities of agri export

promotion at country level and MoFPI for agro processing. Such dedicated agency shall be

developed at state level for export and processing. Currently in many states the activity of

agri. export /processing is being looked after by many agencies and departments like

Department of Agriculture /State Agricultural Marketing Boards/ Agro Industrial

Development Corporation etc. These organizations have their own regular objectives and

functions. Export and processing are their additional or secondary functions. Therefore they

do not have special skillset /expertise in the specialized areas like export and processing. Due

to lack of provision of funds and regulatory framework, they lack in timely business

decisions. Therefore dedicated state level Export Promotion Board / Corporation shall be

established, with the financial support of central and state government. This organization will

coordinate, undertake, and monitor the activities only related to export promotion &

processing and it will work as a state nodal agency for export and processing. The

Department of Commerce, GoI will play a proactive role in capacity building, supporting and

handholding such nodal agency at the State level, as mentioned in the country’s agri. export

policy.

6.6.2 Inclusion of agricultural exports in the State Export Policy:

As mentioned in the Country’s Agri Export Policy, Maharashtra does not have special state

export policy. The Industry Department, Government of Maharashtra has Maharashtra

Industrial Policy having focus on IT sector and Micro, Small & Medium Enterprises

(MSME). As agriculture has perishable and semi-perishable food items, a separate State

Agriculture Export Policy is proposed in Maharashtra State.

For bringing the awareness and benefits of policy changes in the APMC Act, bringing out

policy for marine fisheries, promoting Good Agricultural Practices (GAP)/IndGAP, working

on quality assurance system, planning for pre and post-harvest, infrastructure creation for

further value addition, incentivizing value addition and food processing industries, etc. the

State’s Agriculture Export Policy is prepared.

6.6.3 Institutional Mechanism at State level and cluster level to support exports:

Departments like Agriculture, Horticulture, Animal Husbandry, Dairy Development,

Fisheries, Cooperation & Marketing, Food Processing, Industry etc. look after the production

and post-handling issues relating to agriculture, horticulture, aquaculture, spices, floriculture

and value addition of these products at the State level.

To administer and monitor the activities proposed under State Agri Export Policy and to

converge the schemes and efforts of these departments, a state level Steering committee

under the chairmanship of Hon. Chief Secretary, Maharashtra State is proposed as under. The

state level Regional Authorities of regulatory and developmental organizations will be the

member of the committee.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 22

State Level Steering Committee:

No. Member of the Committee Designation in the

committee

State Level Steering Committee

1. Chief Secretary, Government of Maharashtra Chairman

2. Principal Secretary, Agriculture Member

3. Principal Secretary, Animal Husbandry, Dairy & Fisheries Member

4. Principal Secretary, Marketing Member Secretary

Invitees

1. Chairman, JNPT Invitee

2. Director General of Foreign Trade Invitee

3. General Manager, Indian Railways Invitee

4. Director, Central Excise Invitee

5. General Manager, Airport Authority of India, Mumbai Invitee

6. Commissioner, Agriculture Invitee

7. Commissioner, Animal Husbandry Invitee

8. Commissioner, Dairy Development Invitee

9. Commissioner, Fisheries Invitee

10. Director of Marketing Invitee

11. Managing Director, Maharashtra State Agricultural

Marketing Board (MSAMB)

Invitee

12. Representative, Export Credit Guarantee Corporation of

India

Invitee

13. Regional Head, Agricultural and Processed Food Products

Export Development Authority (APEDA)

Invitee

14. Regional Head, Marine Product Export Development

Authority (MPEDA)

Invitee

15. Representative, National Plant Protection Organization

(NPPO) [Regional Plant Quarantine Station (RPQS)]

Invitee

16. Representative, Export Inspection Council (EIC) Invitee

17. Representative, Fresh Fruits & Vegetables Exporters’

Association.

Invitee

18. Representative, Rice Exporters’ Association Invitee

19. Representative, Spice Exporters’ Association Invitee

20. Representative, Grape Exporters’ Association /

Mahagrapes

Invitee

21. Representative, Onion Exporters’ Association Invitee

22. Representative, Marine Products Exporters’ Association Invitee

23. Representative, Meat / Animal Products Exporters’

Association

Invitee

24. Representative, Dairy Product Exporters’ Association Invitee

25. Representative, Indian Institute of Packaging Invitee

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 23

6.6.4 Cluster Facilitation Cell:

An approach of developing product specific clusters in different agro climatic zones of the

state would help in dealing with various supply side issues viz., soil nutrients management,

higher productivity, adoption of market oriented variety of crop, use of Good Agriculture

Practices, organic production etc. Integration of processors / exporters with farmers will

ensure better returns and stable market. State Government has identified pilot 21 such

clusters, and sub-clusters, in the state, which have a high potential of export and proposed

work with related agencies for facilitating export from those clusters. The cluster may be

added considering rising future potential of the commodity, time to time. To execute the

activities in the clusters, cluster-wise facilitation cell is proposed to be set up under the

chairmanship of Director, Horticulture/ Animal Husbandry/ Dairy Development / Fisheries,

M.S. The composition and representation of the cell is as follows,

No. Authority Designation in

the committee

1 Director (Horticulture), M.S. Chairman

2 General Manager, MSAMB, Pune. Member

3 Representative of APEDA – Mumbai office. Member

4 Representative of NPPO Member

5 Project Director, ATMA Concerned District Member

6 DSAO – Concerned District Member

7 Divisional Dy. General Manager, MSAMB – Concerned Division Member

8 District Deputy Registrar, Co-Op Societies – Concerned District Member

9 Phyto-sanitory authority – Concerned district Member

10 Representative of National /Regional research center – Concerned

Commodity

Member

11 Representatives of concerned Agriculture university Member

12 Representative of KVKs – Concerned District Member

13 Representatives of farmer organization/ FPO/ progressive farmers

– 1 from concerned district

Member

14 Nodal Officer of Nodal Agency Member

Secretary

Invitee (Stakeholders – Exporter / Processor / Subject Expert etc.)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 24

9. OPERATIONAL RECOMMENDATIONS

7.1 Focus on Clusters

Government of India has emphasized the need for focusing on a cluster development

approach to boost the agricultural and horticultural production in India. A similar approach in

export centric clusters is likely to result in a more focused pre and post-harvest management

of the production as well as in upgrading the supply chain to attain much higher levels of

export from those clusters.

Quality produce and consistency in supply are the major keys in success of export. Exporting

agricultural products requires significant volumes of high quality produce of the same variety

with standard parameters matching import demands. Small landholding pattern and low

farmer awareness in India has often meant limited volumes of different varieties of multiple

crops with little or no standardization. Export oriented cluster development across States will

be key to ensuring surplus produce with standard physical and quality parameters which meet

export demands.

As per the tenth Agriculture Census (2015-16), number of operational holdings and area of

Operational land holdings in Maharashtra was 1.53 crore and 2.05 crore ha as against 0.50

crore and 2.12 crore ha respectively as per the first Agriculture Census (1970-71). Over this

period, the average size of land holding decreased from 4.24 ha to 1.34 ha. Therefore, for

attaining significant volumes of high quality produce of the same variety and to aquire

considerable negotiation capacities, the farmers’ groups / Farmer Producer Organizations /

Growers’ Cooperatives need to be established. They shall be promoted for the Farmer

Producer Companies, under Section IX-A of the Companies Act.

Farm Producer Organizations are an institutional innovation to help small holders overcome

scale disadvantages and extend their reach to modern technology and distant markets. FPOs

will be promoted by addressing obstacles faced by them and work through NABARD, SFAC

and State level organizations to expand FPO network. FPOs can be reliable institutions to

develop backward and forward linkages. After handholding these nurtured FPOs can be

commercially viable organizations.

Possibility will be checked for creation of a corpus for export oriented activity through

development of cluster as recommended by stakeholders and suggested in Country’s

agriculture exports policy. India’s agri. export policy recommended clusters of Banana,

Mango, Pomegranate, Grapes, Onion, Oranges and Onion. However following products /

clusters – sub-clusters are identified based on the existing production contributing to exports,

exporters operations, scalability of operations, size of export market / India’s share,

awareness about SPS requirements, and potential for increase in export in short term. The list

of clusters provided below is tentative and could be expanded, provided the conditions for

formation of cluster are met.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 25

Proposed clusters with districts:

No. Product Sub-clusters and Districts Covered

1. Banana A. Jalgaon, Dhule, Nadurbar.

B. Kolhapur, Solapur, Pune

C. Parbhani, Hingoli, Nanded

D. Akola, Buldana, Wardha

2 Pomegranate A. Nasik, Ahmednagar, Pune, Solapur, Sangli,

Latur, Osmanabad,

B. Washim, Buldana

3 Alphonso Mango A. Ratnagiri, Sindhudurg, Raigad

4 Kesar Mango A. Aurangabad, Jalna, Beed, Latur, Ahmednagar,

Nasik

5 Orange A. Nagpur, Amravati, Wardha, Akola, Buldana,

Washim

6 Grapes A. Nashik, Ahmednagar, Pune, Sangli, Solapur,

Osmanabad

7 Onion A. Dhule, Nashik, Jalgaon, Ahmednagar, Pune,

Satara, Solapur

8 Cashew A. Kolhapur,Sindhudurg, Ratnagiri, Raigad,

Thane, Palghar,

9 Floriculture A. Pune, Satara, Kolhapur, Nasik

10 Raisin A. Sangli,

B. Nashik

11 Vegetables A. Jalgaon, Nashik, Pune, Ahmednagar,

B. Thane, Palghar,

C. Nagpur,

12 Non-Basmati Rice A. Nagpur, Chandrapur, Gondia, Gadchiroli,

Bhandara,

B. Palghar, Thane, Raigad, Pune

13 Pulses A. Dhule, Jalgaon, Ahmednagar, Pune,

B. Aurangabad, Jalana, Beed, Latur, Nanded,

Parbhani,Osmanabad,

C. Amravati, Akola, Buldana, Yavatmal, Wardha,

Nagpur, Chandrapur

14 Cereals A. Jalgaon, Nashik, Aurangabad, Beed,

Ahmednagar, Pune, Satara, Sangli, Solapur.

B. Gondia, Nagpur

15 Oilseeds A. Buldana, Akola, Washim, Amravati, Yavatmal,

Wardha, Nagpur,

B. Nashik, Jalgaon, Satara, Sagli, Kolhapur,

C. Jalna, Beed, Latur, Nanded, Parbhani, Hingoli,

16 Jaggery A. Kolhapur, Pune, Satara, Sangli, Solapur

B. Latur

17 Spices (A. Red Chili) A. Nagpur,

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 26

No. Product Sub-clusters and Districts Covered

B. Nandurbar,

C. Buldana,

18 Spices (B. Turmeric) A. Sangli, Satara,

B. Wardha, Washim, Yeotmal,

C. Hingoli, Nanded, Parbhani

19 Dairy Products (Milk,

Paneer, Skimmed Milk

Powder, Casein etc.)

A. Pune, Ahmednagar, Satara, Sangli, Kolhapur,

Solapur

20 Fisheries A. Thane, Mumbai, Raigad, Ratnagiri,

Sindhudurg

21 Animal Products (Poultry

& Poultry Products, Goat,

Buffalo, Sheep, Pork)

A. Jalgaon, Ahmednagar, Nashik, Pune, Solapur,

B. Yavatmal, Amravati, Chandrapur, Gadchiroli,

Buldhana, Nagpur.

C. Nanded, Aurangabad, Beed,

The cluster facilitation cum monitoring cell will identify the time-to-time needs and

concerned members will execute the activities, in line with the approved components under

Agri. Export Policy.

APEDA, MPEDA, EIC and other commodity Boards will provide the framework for

ownership of the supply chain starting from farmer registrations, FPO formation, provision of

quality inputs, price discovery, farmer training through technical organization and third party

certification. The implementation will be done with full involvement of State agriculture /

horticulture / dairy development / Animal Husbandry / fisheries Department, Cooperation &

Marketing Department, Maharashtra State Agricultural Marketing Board, State Agricultural

Universities, ICAR institutions and Food Processing Department. This program can be

clubbed with the Public-Private Partnership for Integrated Agriculture Development (PPP-

IAD) scheme under Rashtriya Krishi Vikas Yojna or under any of the PPP model as

involvement of private industry is critical to market success.

The effort will be to focus on developing export oriented infrastructure in the identified

cluster areas where integrated post-harvest, processing facilities, laboratories etc. would be

set up with support from MOFPI (PMKSAMPADA) / DoC (TIES) / DAC&FW (MIDH) /

DAHDF (IDMF), etc. to have export oriented farm production and processing in compliance

with standardized protocols, packaging, sanitary and phyto-sanitary issues and linking and

networking this to next level of marketing channel.

In the identified clusters, the effort would also be made for sharing of best practice in the area

of smart agriculture, production of residue free commodities wit traceability, use of mobile

app for pest management, use of Artificial Intelligence, use of drones for monitoring and

adoption of newer technologies. Renewed focus is required on seeds, pesticides, fertilizers

and proper utilization of water which can increase the area under irrigation.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 27

7.2 Promoting value added product export

7.2.1 Product development for indigenous commodities and value addition:

Post-harvest losses generally range from 5 to 10 percent for non-perishables and about 30

percent for perishables. This loss could be and must be minimized. The effective for the same

is to increase the agro processing. In the country’s Agri Export Policy, it is proposed that the

agriculture export policy must focus on promotion of value added, indigenous and tribal

products. India’s export basket is dominated by products with little or no processing or value

addition. Commodities identified in the indigenous category which include non-forest

produce, wild herbs, medicinal plants, extracts, lac, essential oils etc. would require intense

export focused research for developing exportable products along with strong branding

efforts, for which stakeholders, during consultations with Government of India, have

recommended for financial support.

Research and development on value added products are required. For e.g. Cashew requires

boost to be exported in value added form such as cashew apple jams and pastes, flavoured

cashew, etc. currently, less than 4% of cashew exports are in value added form (CNSL,

Roasted/salted nuts), for which stakeholders, during consultations with Government of India,

have recommended for financial package. Industry estimates suggest a significant quantity of

exports head to countries which conduct limited value addition and re-export it.

Other major processed food products revealed during preliminary exercise of GoI are Biscuits

& Confectionery, Indian Ethnic Foods, Cereal Preparations, Dehydrated onion, other

vegetables & Frozen vegetables including Gherkin, Processed fruits- juices, concentrates.

Other such potential processed food products from Maharashtra will be identified and in-kind

support will be provided.

7.2.2 Promote value added organic exports – Marketing and Branding:

Changing lifestyles and inclination towards consumption of organic produce and its

processed foods, provides significant growth potential in this sector which needs to be

harnessed. The organic exports from India is in the range of Rs. 3450 crore (2017-18). The

global trade in Organic products is estimated to be in the range of US$ 90 billion. Therefore,

the scope for improving organic exports, especially, value added organic from India is very

high.

The Government of India has implemented the National Programme for Organic Production

(NPOP). The national programme involves the accreditation programme for Certification

Bodies, standards for organic production, promotion of organic farming etc. The NPOP

standards for production and accreditation system have been recognized by European

Commission and Switzerland for unprocessed plant products as equivalent to their country

standards. Similarly, USDA has recognized NPOP conformity assessment procedures of

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 28

accreditation as equivalent to that of US. With these recognitions, Indian organic products

duly certified by the accredited certification bodies of India are accepted by the importing

countries.

Total Area under certification process in Maharashtra (2017-18) is 235690 Ha in Cultivated

(Organic +In-conversion) and 68384.260 Ha. in Wild Harvest in Maharashtra. Maharashtra

ranks 3rd after Madhya Pradesh and Rajasthan. Out of which 108028 Ha is organic certified

area and 127660 Ha is under conversion area, which produce 375067 MTs and 2241 MTs

respectively. Export of organic produce from Maharashtra is 32742 MTs worth Rs. 23170

Lakhs. Total number of farmers working under NPOP program in Maharashtra is 100213

having 2nd rank after Madhya Pradesh (310790 farmers)

The crops/ commodities/category grown organically in Maharashtra are Sugar Crops,

Oil seeds, Fiber Crops, Cereals & Millets, Pulses, Medicinal plants, Spices and Condiments,

Vegetables, Dry fruits, Fruits, Plantation Crops, Ornamental Plants, Tuber crop etc.

Organic products are exported to USA, European Union, Canada, Switzerland, Australia,

Israel, South Korea, Vietnam, New Zealand, Japan etc.

Huge population of India abroad, desires for Indian traditional and ethnic food. Catering to

their needs, there is numerous potential for export of these products. Following activities for

organic products / ethnic product can be taken up, with the support of APEDA, nodal agency

for implementation of NPOP.

1. The organic exporters have suggested that the gestation period for establishing an

organic product in the retail market is long and cost of launching is very high. A

support for product registration of organic product growing farmer with NPOP,

support for buying shelf space in the organic retail chains etc. will be taken up with

APEDA, nodal organization for implementation of NPOP, which in turn will

coordinate the activity to enhance organic exports from Maharashtra.

2. Establish backward & forward linkage to make success the venture based on

planning, production, & procurement, processing & marketing.

3. Arrange to provide awareness and trainings to the willing growers about organic

production and its marketing.

4. To promote a collective growing & contract farming for production of organic food

products. FPOs shall be promoted for organic production (Fresh and Processed

Organic Food Products).

5. To undertake advertisement & publicity to build awareness among the consumers

about the advantages of organic food & their quality assurance mechanism. To

participate in national & international exhibitions & fairs.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 29

6. The percentage of organic processed products export from India is only 5.5% of the

total organic food export. Only a limited range of products are exported from India.

Organic Processed Products which can be promoted from Maharashtra are mango

pulp, puree, by-products of oil crops, soya meal, cakes and few ready to eat products,

sugar, edible oils etc. Maharashtra can look at exports of a whole range of value

added fruits and vegetables, IQF Fruits and vegetables, Ready to eat products, Pickles,

Soups and sauces, Dairy products, Processed livestock, Aquaculture products, etc.

7. There is increasing demand for ethnic food from developed nations, in the form of

value added, ready-to-eat, particularly arising from the migrant Indian population

across the globe. In the era of globalization and proliferating lifestyle diseases, quality

conscious consumers across the world are seeking comfort, respite and health benefits

in their food. Maharashtra can offer a one stop solution and provide a range of ethnic

products ranging from healthy and organic to processed and convenient food. The list

is big but not limted to shrikhand, ukdiche modak, thalipeeth, dishes such as spicy

savjis, Puran poli, Gul poli, Sabudana Khichadi, Mattha, misal, pohe, sheera, Kadhi,

Papad or related snacks such as sandge, kurdaya and sabudana papad etc.

8. Develop uniform quality and packaging standards for organic and ethnic products, to

tap the international markets.

9. Capacity building in the field of organic production.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 30

7.3 Skill development:

In the changing current era of import of agricultural products, majority of the importing

countries are asking for quality; pest and disease free and complete traceable material for

import. The Sanitary and Phyto-sanitary requirements are becoming stringent not only for

developed countries but for developing countries like Saudi Arabia, UAE etc, too.

Developing countries like USA, Japan, Australia, European Union etc. has developed a

system for importing agriculture produce and provided SOP.

There is need to change the paradigm from supply driven to demand driven. The Product and

Market Mix for certain crops/commodities has been analyzed as attached in Annexure – 1.

For targeting the potential markets, the skill development has been accessed. For the same the

capacity building of all the stakeholders i.e. growers, pack house operators, special treatment

facilities, phyto-sanitary certification authorities, staff of concerned line departments,

exporters, logistics supplier, custom house agents, and the new entrepreneurs etc. need to be

enhanced. Their awareness about the international market demand is also important so as to

improve on post-harvest management practices, sorting, grading, packing and various special

treatments.

Traceability is gaining a pace in most of the developed international markets. APEDA has

developed software systems for traceability like Hortinet, Mangonet, Grapenet, Ananrnet,

Vegnet etc. However, it has been observed that there is need to increase the awareness among

the growers about it.

Training to newly entrant exporters also important on various aspects like role of various

authorities like DGFT, APEDA, NPPO, ECGC, EIC, custom house agents etc., export

procedure and documentation, sanitary and phyto-sanitary requirements, forward linkages

and logistics, banking in export business. Being achieved success in state level Horticulture

Export Training Program and commodity specific programs (for mango in 2019) conducted

by MSAMB, the scope and frequency of such program can be widen to district level and

commodity based programs can be organized.

For processing of food products, work force need to be provided with skill development

opportunities on a regular basis to keep pace with changing customer preferences. Apart from

the work force, Capacity development of different food processors, particularly from MSME

and unorganized segments is required to enable them to tap overseas markets and global agri-

business value chain. Such capacity building programs can be undertaken with the support

from GoI’s skill development programs from various departments like DoC, MSME, MoFPI,

NABARD etc.

For the same, under Cluster Development Program, On-field demonstrations, Agriculture

Export Training Course, Commodity Specific Export Training Programs, Division Level

Training programs, District Level Training programs for Farmers, Trainers’ Training

Programs, Exposure Visits (Domestic Study Tour / Overseas Study Tour) shall be arranged.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 31

Relevant training material shall be developed, preferably in Marathi language, for

dissemination of information to the stakeholders.

Such skill development/capacity building programs can be organized and coordinated by

MSAMB’s National Institute for Post-Harvest Training (NIPHT), Pune.

7.4 Market Development:

There are so many countries where our export is in the infant stage. Aggressive market access

and market penetration is required. This will boost the exports in such countries. Since the

major producer of various agro commodities, the share of export of India is merely 2.2% of

the world international business. There are many international markets still to be tapped at

wider scale. i.e. if we see, Canada, which is major importing country for mangoes (around

105 Million USD), where we are exporting not more than 1 Million USD. Canada is the

better rate giving country with less stringent importing norms. Such international markets

need to be identified for particular commodities and conduct aggressive marketing in those

countries. The Product and Market Mix for certain crops/commodities has been analyzed as

attached in Annexure – 1.

a. Market Demand Analysis for deep penetration: For targeting existing market

countries, the detailed study including their demand, their domestic production, their

suppliers, suppliers’ strategy, product-price matrix etc is to be done. There are some

countries, which are untapped completely. Their importing norms like quality

parameters, Residue Levels, Phyto-sanitary requirements, packaging requirements need

to be studied and pursued with National Plant Protection Organization, Government of

India for opening of such countries for our products.

Market Identification for newer products: Before entering a newer product in the

international market, the product and market mapping is to be studied including the

potential of the market. The market research is required. This includes identifying the

market potential, learning how to properly (and legally) export our products to that

market, identifying sales channels and verticals.

There are some products like Guava, Custard apples, Sapota, Herbal Products –

Charoli, Mahua, Jamun etc., Maize, Local grains like Ragi, Millets – minor, pearl, Sattu

arecanut, shendodi etc. for which the international markets to be explored and tapped.

The standard operating procedures for such new products and new markets need to be

developed.

b. Participations in international exhibitions/ Fairs / In-store Promotion: On that basis

the targeted promotional activities including participations in international exhibitions,

organizing fairs, in-store wet marketing, brand promotion etc. can be organized. This

will give rise the trust building between consumer / importers and exporters and the

long term relationship will be established.

c. Branding: It is also recommended that marketing campaigns be created for individual

fruits or products such as “Wonderful Pom”, “Bananas of India”, “Gondia Rice”. This

activity would be for a sustained communication campaign in the form of a branding

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 32

blitz across key targeted markets. This must utilize both digital and traditional media

platforms.

d. Developing forward & backward linkages/ Buyer Seller Meets:

It is observed that perfect match making is required for direct linkages between

exporters and buyers and exporters and importers. There will be requirement of creating

a platform for buyers & sellers. For Market promotion regular buyer seller meets will

be organized at district level and state level to provide the platform for growers,

exporters, importers etc.

e. Marketing / branding of GI Products, organic products and ethnic products:

Maharashtra is well known for diversified products for its originality. To gain the

market advantage of such products Geographical Indications (GI) are given to 26 agro

products in Maharashtra. Therefore there is need for marketing and branding of these

GI Products. Aggressive international marketing would be required for organic products

and ethnic products of Maharashtra.

MSAMB may coordinate such international events for export promotion with the support of

APEDA and Indian Embassies in abroad.

7.5 Attract private investments in export oriented activities and infrastructure:

Though interaction of private sector and public sector is not new, yet the level is very low.

On the one hand, public sector has highly skilled and efficient manpower in agriculture and

on the other hand, private has excellent managerial resources. Involvement of private players

at this stage of value chain could help in reducing wastage and post-harvest losses of

agricultural commodities as well. Government should seek to enhance participation of private

sector in agriculture to improve efficiency of the value chain.

With the implementation of amended APMC Act, the participation of private sector has

increased in agriculture sector in Maharashtra especially in the direct marketing, single

licensee, contract farming, and setting up of private markets. Direct marketing and contract

farming is proved as a boon to the exporters. However, private investment in agriculture has

also been slow and must be stimulated. Accelerated private investment can be beneficial for

both private and public sector. The areas where private investment could make effective

results are as under –

1. Pre harvest management – Germplasm import and evaluation, input supply,

accelerated technology transfer, mechanization at farm level.

2. Post Harvest Management – Collection Centers, Packhouse, Testing Labs, Special

Treatment infrastructure, Logistics.

3. Infrastructure for agro processing.

4. Infrastructures at Railway stations, Sea Ports, Airports.

5. Support in market access and development activities.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 33

7.6 Ease of Doing Business (EODB) & Digitization:

7.6.1. Land Digitization:

India’s Agri. Export Policy mentioned about register land records, digitization of land

records, geo-mapping of lands, registration of farmers and farm producer organizations

(FPOs) and carry out satellite mapping of lands while linking these details to farmer

AADHAR cards. This will be help in establishing traceability, market linkages and plugging

leakages in public funds. State Government will coordinate successful implementation of

such digitization to facilitate consolidation and aggregation of land holding for export

oriented cultivation.

7.6.2 Market Intelligence cell:

For decision making at Government level and trade level, the updated and errorless

information is the key parameter. APEDA and MPEDA run `agri exchange portal’ and `fish

exchange portal’ respectively. . India Trade portal is operated by FIEO with the support of

DoC and it provides information relating to tariff scenarios in FTA and non-FTA situations,

the SPS notifications and also provides a window for Indian Embassies to offer market leads.

Thus, relevant information on market intelligence is scattered in different web. It is proposed

at Central level to develop an integrated online portal for real time updates relating to tariff,

non-tariff, documentation, pesticide & chemical MRL notifications. This portal will facilitate

exporters to make well-informed decisions related to markets, pricing, hedging and SPS

notifications. The portal may also include a grievance redressal mechanism allowing

exporters to flag off market related issues and challenges. Manual of Importing Country

Requirements (MICOR) for all the major agriculture products exports from India for all

major importing countries are also proposed. The exporters would be able to look up for

requirements of importing country and comply, minimizing the risk of rejection of exported

consignments.

The information will be analyses in context of Maharashtra State and will be disseminated

through concerned State Government websites and circulated among various training

programs being conducted in the state, to keep the stakeholders updated. Regular workshops

with exporters are also envisaged in this regards. MSAMB may coordinate this activity.

7.6.3 Trade procedures and facilitation:

Exporters reveal that lengthy and cumbersome documentation and operational procedures at

ports are a constant challenge. They have often recommended implementing 24 x 7 single

window clearances of perishables imports and exports at key ports across the nation. It is

equally important to station more quarantine officers at strategically important ports.

Considering the limited manpower of NPPO, the proposal may be forwarded to NPPO for

third party inspections with the support of State Agriculture Department and/or MSAMB.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 34

7.6.4 Grievance Redressal Cell:

Importers of Agriculture products from India interact with Indian missions abroad to inform

about their grievance. In order to provide follow-up and resolution of issues relating to export

grievances the Trade Disputes Cell in the DGFT Office has been functional.

State Government will act as a coordinator for issues to be taken up or follow-up of the

disputes of exporters and importers with the said Grievance Cell and shall be responsive for

any of the action to be taken up at grass root level, for compliance.

7.7 Developing Sea Protocol:

Considering the competitiveness of Indian agro produce in the International market, the study

reveals that the air freight has a major contribution in the cost of the export consignment.

Therefore there are limitations in competition for our produce in the international market.

Developing sea protocols for perishables must be taken on priority for long distance markets.

Export of perishables requires special storage, transportation and handling at desired

temperatures. Hence it is necessary to export the agro produce by sea route. However, the

perishability of F&V is the bottle neck. Therefore there is need to develop the protocol for

export of F&V by sea route to distant markets like USA, European Union, Russia etc.

Therefore with the support from BARC, APEDA, NPPO, National Research Centers,

Agriculture Universities protocol/s is to be developed. This will help in exporting perishable

consignments trough sea route.

The landed cost of our produce shipped by sea will be competitive and hence more and more

produce will be exported. As per our experience, in the initial phase, during establishing the

protocol, exporters have their reservations to step-in such activity, due to the fear of quality

issues. Therefore we suggest supporting to the exporters for such long distance consignments

by sea. In view of MSAMB’s experience in developing sea protocol and suitable

infrastructure available, MSAMB may coordinate such activity of developing sea protocols,

with the support of APEDA and State Government.

India’s Agri Export Policy mentioned that the trials of sea protocol held at strategically

important ports across India are an immediate requirement that must be taken up on war-

footing, to start with MSAMB undertook sea shipment trail of mangoes to London, United

Kingdom. The consignment reached in good condition and got overwhelming response in the

London market. Net returns are also encouraging. This experience shall be utilized for

tapping other ports in Europe and long distant markets. MSAMB has conducted simulation

trail of mangoes with Bhabha Atomic Research Centre for USA shipment, after irradiation,

the response of the trial is also encouraging. Being success of this simulation trial, we can

oversee the commercial consignment to USA in the next mango season.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 35

Hiring of International Consultants:

In export of various agro products, many supplier countries are leaders and are having major

share in the international market i.e. Ecuador and Philippines in Banana, USA in processed

products, The Netherlands in flowers, Israel, New Zealand, Denmark etc. They have proven

technology in pre and post-harvest. For developing protocols of some of the products in

Maharashtra, the international experts from concerned countries may be hired for certain

period.

7.8 SPS and TBT Response Mechanism:

Apart from tariff barriers, which have been declining over the years on account of Free Trade

Agreements & Regional Trade Agreements, the Non-Tariff Barriers (NTBs) and stringent

quality/phyto-sanitary standards are becoming the norm for restricting/preventing market

access. It is common knowledge that issues relating to market access go on for months,

sometimes years together before countries allow market access for products. It is necessary to

respond to rapid alerts and warnings and to ensure that the concerns/problem areas percolate

to the producers/processors and exporters. In the absence of a response mechanism, the

likelihood of temporary restriction/ ban looms large and sometimes it may take years to lift

the ban.

Apart from response to rapid alerts, the market access efforts require submission of pest risk

analysis, dossier on animal health and disease control program, addressing safety concerns of

the importing countries/intending countries. Given the multiplicity of Departments/Agencies

responsible for submitting/responding to these issues, it takes an unusually long time to

respond, resulting in delay in market access.

In view of the above, in the India’s Agri. Export Policy, it is suggested to create an

institutional mechanism under the aegis of Department of Commerce with representation of

relevant Ministries, Agencies to address India’s market access request, calibrate it with

trading partner’s market access request for accessing the Indian market and quickly respond

to SPS/TBT barriers. As part of the Agriculture Export Policy, the Department of Commerce

proposes to develop a common portal to monitor all export rejections and provide a platform

to different nodal agencies to take up a root cause analysis, take corrective action and in case

of requirement, respond to the partner country regarding action taken.

Considering the major export of agro produce from Maharashtra, the involvement of the

stakeholders from Maharashtra (exporters/ processors/ growers / state authorities) are more. It

is obvious that the response of Maharashtra towards rapid alert and/or non-compliance should

be immediate. Maharashtra has more potential products; hence the activities of market access

are also to be undertaken at grass root level in the state. Hence under the nodal agency, State

shall constitute a committee, involving representatives of concerned departments and regional

authorities, to response on the same.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 36

7.9 Traceability System :

Hortinet collects, stores and reports – forward and backward traces and quality assurance data

entered by the stakeholders, i.e. The Farmers, State Government Horticulture Departments,

The testing laboratories, Agmark Certification Department, The Phyto-sanitary department,

Pack houses, Exporters, etc. within the supply chain in India. Importers can also register with

this system to access reports on the consignments exported to them.

APEDA established Hortinet software for Grapenet, Mangonet, Anarnet, Vegnet, Betel net

and Citrus net for establishing traceability. On this line, it is also essential to establish

traceability for Onion and Banana, as per the Standard Operating Procedure (SOP) of the

importing countries. It is necessary to make cluster based awareness campaign for the

stakeholders.

Hortinet traceability system shall be implemented with the help of State Government through

the participation of farmers. The District Superintendent Agriculture Officer will be

responsible to increase exportable farm registration under traceability system, issue of

package of practices, exportable quality production, audit of registered farms, fortnight pest

monitoring of registered and approved farms and providing details of approved farms to

APEDA and exporters. Farmers should be protected with the booklets containing all the

details of package of practices.

The required infrastructure facilities will be established including quarantine inspection area

with pathology, entomology and nematology lab facilities.

A State level Hortinet traceability system review committee is already established under the

chairmanship of Director, Horticulture to discuss the issues as regards to exports with the

concerned stakeholders. This will continue for effective implementation of phytosanitary

requirements.

A geographical indication (GI) is a sign used on products that have a specific geographical

origin and possess qualities or a reputation that are due to that origin.In Maharashtra around

26 agro commodities are registered under GI. Therefore the growers registered under GI shall

be mapped with the HORTINET system, so that all the stakeholders can access database of

GI registered growers. This will give effective implementation of GI registration and its

commercial use.

7.10 Importing export oriented germplasm &planting material:

The long gestation period in seed development and commercialization is indeed a costly

barrier to boosting productivity. The private sector has displayed apprehension in technology

transfer due to lack of adequate regulation and protection of Intellectual Property (IP) Rights.

There is a need to import plant and planting material for having the new varieties as per

international market demands like less pungency in onion and garlic, higher yield, bigger

fruit size, better shelf life, process worthy variety, pets and disease resistance etc. This will

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 37

enable us to extend its seasonality window for marketing in importing countries. These

varieties also have to be resistant to identified pests and diseases prevalent in the country.

As per the demand received from stakeholders growers or exporters, the state government

will initiate import of export oriented germplasm & planting material and its trials with

universities/ research centers/exporters.

7.11 Research and Development

To achieve widely acceptability of our product in the international market and to make it

competitive, there is need to identify and utilize resources for export-oriented product

development and quality testing of identified commodities. e.g. issue like spongy tissue in

alphonso mango, premium variety need to addressed. Interventions are required through R &

D activity. Agri Export Policy of India mentioned about suggestions on interventions

required in R & D sector would be sought from stakeholders to ascertain the financial

implications.

a. Improvement of product quality:

Agricultural research and development (R&D) led by private industry along with higher

infrastructure spend by the government will be the key to boosting agricultural exports.

Along with this, innovations in packaging, improving shelf life of products and greater R &

D in developing products to suit the palates of importing countries would be a priority.

The Autonomous Bodies under State Governments with the support from Department of

Commerce, including Indian Institute of Packaging may work with the stakeholders, MoFPI,

ICAR, Council of Scientific & Industrial Research (CSIR) will work in this direction.

b. Protocol Development for newer market:

Development of protocol for export for specifc market: R&D activity will need to be

conducted to take trials as per the revised norms of importing countries. Accordingly it can fit

into the protocol form export of commodity to desired international market. A study has been

carried out by Vapour Heat Treatment on bitter gourd for export to EU.

c. To identify pest free area for Agri./Horti. Products required for export to certain

countries :

Some importing countries have laid down their phyto-sanitary norms, for which the

catchment area is need to be declared as a certain pest free zone. e.g. Saharanpur district of

Uttar Pradesh has been declared from mango pulp weevil, Sternochetus frigidus (MPW), mango

seed weevil, S. mangiferae (MSW). This activity is to be carried out by Regional Plant

Quarantine Stations with the help of State Agriculture / Horticulture Department or

Agriculture Universities as per the guidelines laid down by National Plant Protection

Organization, Faridabad under Ministry of Agriculture and Farmers Welfare, GOI. The

activity will be monitored and reviewed by the concerned cluster facilitation cell.

During the transition phase of technology transfer, the private exporters are reluctant to

invest, due to fear of probable quality issues. Therefore there would be need of financial

support for initial pilot projects.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 38

7.12 Use of Agri-start-up fund:

Agri Export policy of the country mentioned that entrepreneurs are to be supported to start a

new venture in Agri products exports during their initial period of establishment. Proposals

received showing work on a new concept / product / project would be referred to the fund

manager for its evaluation and provide funding for the deserving proposals which are going

to aid in increasing agricultural exports from the country. For e.g. use of IT in the agriculture

value chain including precision farming, plant health monitoring, use of drones for precision

agriculture, packaging, tracking of produce in transit may be supported by the Fund.

Such proposal, if any, received from exporters / their association / stakeholders in the

common interest to boost the exports from Maharashtra, will primarily be evaluated at State

Level Steering Committee and will be submitted to concerned authority which will

administer the Agri-start-up fund. The state government will make awareness about such

funds among the potential beneficiaries.

***

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 39

Annexure – I

International Product – Market Mix Analysis:

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

Banana 291.35 30.25

(10.38%)

Rank 5

1.345

(0.45%)

UAE, Oman,

Iran, Saudi

Arabia, Nepal,

Qatar, Kuwait,

Afghanistan,

Bahrain,

Malaysia

USA,

Belgium,

Russia, Japan,

UK,

Netherlands,

China, France,

Italy, Canada,

Korea, Poland

(16431.54

Lakh MTs)

Philippines,

Ecuador,

Brazil and

Indonesia

Middle East

Countries,

SEA

Countries,

Europe (UK

& Germany)

Export Facility

Center (Water

Tanks,

Precooling, Cold

storage,

Packhouse,

Grading-Packing

Line/Tables)

3.00

(1.50)

Pomegranate 23.06 14.86

(64.43%)

Rank 1

0.679

(2.94%)

UAE,

Netherlands,

Saudi Arabia,

Bangladesh,

Oman, Nepal,

Qatar,

Thailand, UK,

Middle East

Countries,

South East

Asian

Countries,

UK, Germany

Spain,

Turkey,

USA, India,

South

Africa,

Peru,

Argentina

Europe (UK,

Germany,

Netherlands),

USA,

Middle East

Countries,

Export Facility

Center

(Precooling,

Cold storage,

Packhouse,

Grading-Packing

Line/Tables)

2.00

(1.50)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 40

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

Shrilanka

Irradiation

Facility for USA.

Mango 186.43 4.63

(2.48%)

Rank 10

0.465

(0.25%)

UAE, UK,

Oman, Qatar,

USA,

Bangladesh,

Kuwait, Saudi

Arabia, Nepal

(Rs. 406

Crores) – Rank

7th in the world

USA,

Netherlands,

Germany, UK,

China, UAE,

France,

Canada, Spain

(14.45 Lakh

MTs, Rs.

10919 Crores)

Mexico,

Peru, Brazil,

Thailand,

Philippines,

Netherlands

Europe (UK,

Germany,

Netherlands,

Italy, France,

Switzerland),

Canada,

USA,

Australia,

Japan, New

zealand,

South Korea,

Middle East

Countries,

SEA

Countries,

Irradiation

Facility for USA

& Australia,

Export Facility

Center

(Precooling,

Cold storage,

Packhouse,

Grading-Packing

Line/Tables, Hot

Water Treatment

for 48 Degree 60

Mins and 52

Degrees for 3

2.00

(1.50)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 41

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

Mins.)

Oranges 41.13 7.69

(18.70%)

Rank 3

0.00408

(0.01%)

Nepal, UAE,

Oman, South

Africa, UK,

Bahrain

Russia, USA,

France, UK,

Canada,

Netherlands,

Poland,

Belgium,

Indonesia,

Italy, China,

Sweden,

Norway,

Austria

(32.14 Lakh

MTs)

USA,

Australia,

China,

Pakistan,

Israel,

Morocco,

Italy, Spain,

South

Africa

Middle East

Countries,

Europe (UK,

Germany,

Netherlands)

Export Facility

Center

(Precooling,

Cold storage,

Packhouse,

Grading-Packing

Line/Tables,

Waxing

arrangement)

0.50

(0.10)

Onion 209.31 65.29

(31.19%)

21.83

(10.43%)

Bangladesh,

UAE, Malaysia,

Srilanka, Nepal,

Saudi Arabia,

USA,

Malaysia, UK,

Germany,

Canada,

Netherlands,

India,

Mexico,

China,

Europe (UK,

Germany,

Netherlands,

Italy,

Export Facility

Center (Cold

storage,

Packhouse,

25.00

(20)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 42

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

Rank 1 Kuwait, Qatar,

Oman,

Indonesia,

Philippines,

Vietnam,

Singapore,

Bahrain

Russia,

Netherlands,

UAE,

Srilanka,

France,

Belgium,

Indonesia

(55.81 Lakh

MTs)

USA, Spain,

Egypt

France),

USA,

Middle East

Countries,

SEA

Countries,

Russia,

Srilanka,

Nepal,

Myanmar

Grading-Packing

Line)

Irradiation

Facility for USA,

Europe, Middle

East and South

East Asian

Countries.

Spices

(A.

Turmeric##)

12.15 2.25

(18.51%)

Rank 2

1.07

(11.37%)

Majority of

the export is

from JNPT.

USA, Iran,

UAE, Malaysia,

Morocco, UK,

Srilanka,

Germany,

Japan, Saudi

Arabia,

Netherlands

USA, Iran,

Malaysia,

UAE,

Germany,

Netherlands,

Japan,

Bangladesh

India,

China,

Myanmar,

Nigeria and

Bangladesh

Europe

(USA, UK,

Germany,

Netherlands)

& Middle

East

Countries.

Irradiation

Facility for USA

&Europe

1.50

(0.50)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 43

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

(B. Chilli ##) 23.94 0.0343

(0.14%)

Rank 12

0.444

(18.54%)

Majority of

the export is

from JNPT.

Vietnam,

Thailand, USA,

Srilanka,

Malaysia,

Indonesia,

UAE,

Bangladesh,

China, UK,

Oman, Nepal,

Mexico

USA, UAE,

Srilanka,

Bangladesh,

Malaysia,

Bangladesh,

Chile, China,

Egypt,Ethiopi

a, Greece,

Guatemala,

Indonesia

Mexico,

Thailand,

China,

Jamaica,

Korea,

Malaysia,

Ethiopia

Europe

(USA, UK,

Germany,

Netherlands)

& Middle

East

Countries.

Irradiation

Facility for USA

&Europe

7.00

(0.25)

Floriculture

(Roses,

Jasmine,

Marigold,

Gerbera,

Carnation)

16.59

(loose

flowers)

&

4.84 (cut

flowers)

0.31

(9%)

Rank 5

0.197

(0.92%)

USA,

Netherland,

UK, Germany,

Singapore,

UAE

Germany,

Netherlands,

USA, UK,

France, Japan,

Russia, Italy,

Switzerland,

Belgium,

Austria,

Denmark,

Poland

Netherlands,

Colombia,

Germany,

Ecuador,

Italy,

Kenya,

Belgium,

Spain (India

Ranks 28th)

SEA

Countries,

Europe

(UK,Netherl

ands,

France,

Switzerland)

Export Facility

Center

(Precooling,

Cold storage,

Packhouse,

Grading-Packing

Line/Tables)

0.40

(0.15)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 44

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

(116.80 Lakh

MTs)

Vegetables

(Okra, Green

Chilli, Brinjal,

Drumsticks,

Curry Leaves,

Bitter Gourd,

Bottle Gourd,

Cabbage,

Cauliflower)

1750.08 103.61

(6%)

Rank 6

7.21

(0.41%)

(7th Rank in

the world)

Middle East

Countries,

South East

Asian

Countries, UK,

Germany

USA,

Germany, UK,

India, France,

Canada,

Netherlands,

Japan,

Vietnam,

Belgium

($75.2 Billion

= Rs. 526400

Crores)

China,

USA,

Germany,

Netherlands,

Japan,

Framce,

India, Italy,

UK, Spain,

Belgium

(Where the

Indian ethnic

population is

Considerable

– More than

1 Lakh)

i.e. USA,

Saudi

Arabia,

Nepal, UAE,

Export Facility

Center

(Precooling,

Cold storage,

Packhouse,

Grading-Packing

Line/Tables)

15.00

(4.00)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 45

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

Malaysia,

United

Kingdom,

Canada,

Myanmar,

Oman, Sri

Lanka,

Kuwait,

Qatar,

Singapore,

Germany,

Bahrain,

Philippines,

Italy,

Netherlands,

Indonesia.

Non-Basmati

Rice

75.99

(Rs. 21186

Crores)

Nepal , Benin,

Senegal,

Bangladesh Pr,

and Guinea,

Bangladesh,

Nepal,

Srilanka,

African

India, China Middle East

Countries,

SAE

Countries,

African

Cleaning,

Sorting (Sortex),

Grading and

Packing line,

100

(10.00)

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 46

Crop Production# (Lakh

MTs)

Export from

India

(Lakh MTs)**

Current

Destinations**

Major

importing

countries*

Supplier

countries*

Target

Country

Infrastructure

Required

Projection

– Qty.

Lakh MTs

India

(Maharas

htra)

India Maharashtra

(% of India)

Rank in

India

UAE Countries Countries Packhouse.

* COMTRADE, United Nations.

** DGCIS, GoI.

# National Horticulture Board– 2016.

## Spices Board 2017.

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 47

Annexure – 1

Potential of Maharashtra:

A. Production:

a. Fruits & Vegetables:

Produce Production in Lakh MTs Maharashtra’s

Share %

Rank in

IndiaIndia Maharashtra

Grapes 25.95 21.60 83 1

Pomegranate 13.50 9.50 70 1

Onion 194.00 58.7 30 1

Banana 297.30 48.30 16 2

Oranges/Citrus 100.90 16.30 16 2

Mango 184.30 12.10 7 6

Total Fruits 812.90 97.90 12 2

Total Vegetables 1621.90 80.00 5 8

b. Cereals:

Crop Production in Lakh MT Maharashtra’s

Share %

Rank

India Maharashtra

Jowar 44.1 13.1 29.71 1

Soybean 85.9 21 24.45 2

Tur 24.6 4.7 19.11 2

Gram 71.7 7.3 10.18 4

Maize 218.1 15.1 6.92 6

Bajara 80.6 3.4 4.22 6

Rice 1043.2 26.3 2.52 15

Wheat 935 7.6 0.81 10

B. Export :

a. Fruits:

Crops

India Maharashtra

Maharashtra’

s Share (%) RankQty.

(MT)

Value

(Rs. In

Crores)

Qty. (MT) Value (Rs.

In Crores)

Grape 210220 2289 200203 2106 95 1st

Mango 49178 382 35343 309 72 1st

Pomegranate 47335 538 32652 412 69 1st

Banana 101309 349 44558 149 44 1st

Sapota 1601 9 1562 9 97 1st

Custard Apple 779 7 754 7 97 1st

Papya 9984 42 6655 30 67 1st

Mango pulp 110924 674 20659 156 19 3rd

Other Fresh

Fruits 177866 686 50176 225 28 2nd

Other processed

fruits 391284 3405 119043 1070 30 2nd

Draft Agriculture Export Policy (AEP) of Maharashtra State Page 48

b. Vegetables:

Crops

India Maharashtra

Maharashtra’s

Share (%) RankQty.

(MT)

Value

(Rs. In

Crores)

Qty (MT) Value (Rs.

In Crores)

Onion 1588978 3088 1054618 1971.7 66 1st

Green Chilli 44897 220 33948 193.22 76 1st

Garlic 23999 145 15799 96 66 1st

Other vegetable 18464 104 4378 27.3 24 1st

Sweet corn 13836 65 11837 52 86 1st

Okra 2992 33 2115 20.9 71 1st

cucumber 484 2 441 1.5 91 1st

Bottle gourd 60 4 43 2.8 72 1st

Mixed

vegetable 147653 672 28756 170 19 2nd

c. Cereals:

Crops

India Maharashtra

Maharashtra

’s Share (%) RankQty.

(MT)

Value

(Rs. In

Crores)

Qty (MT) Qty. (MT)

Maize 569296 1030 124213 213 22 2nd

Non-Basmati

Rice 6820772 17145 761459 1972 11 3rd

Pulses 124882 1140 78495 714 63 1st

Other cereals 168638 396 40560 104 24 1st