What Happened
- An analysis has argued that achieving India's $100 billion agricultural export target by 2030 requires moving beyond short-term fiscal incentives towards systemic collaboration between industry and government.
- The three priority areas identified are: fixing supply-side constraints (cold chain, logistics, processing infrastructure), raising value addition (shifting from raw commodity exports to processed products), and ensuring reliable market access (trade agreements, SPS compliance, quality standards).
- India's agricultural exports reached $51.9 billion in 2024-25, meaning the target requires near-doubling of exports within five years.
- ICRIER in collaboration with APEDA has developed a strategic roadmap focusing initially on bananas, mangoes, mango pulp, and potatoes, with a second phase covering oranges, chillies, grapes, honey, milk products, and groundnut.
- The India-UK FTA signed on 24 July 2025 grants duty-free access to 95% of agricultural and processed food exports, expected to boost agri-exports by over 20% in three years.
Static Topic Bridges
Agricultural and Processed Food Products Export Development Authority (APEDA)
APEDA is a statutory body established in 1986 under the Agricultural and Processed Food Products Export Development Authority Act, 1985, functioning under the Ministry of Commerce and Industry. It is responsible for the export promotion and development of scheduled products including fruits, vegetables, meat, poultry, dairy, cereals, and basmati rice. APEDA also functions as the Secretariat to the National Accreditation Board (NAB) under the National Programme for Organic Production (NPOP).
- Established: 1986 under APEDA Act, 1985; Ministry of Commerce and Industry
- Functions: export promotion, financial assistance to exporters, quality inspection, registration of exporters, statistics collection
- Key schemes: Agriculture Export Promotion Scheme (sub-components: Market Development, Infrastructure Development, Quality Development)
- Product matrix: 50 agricultural products with strong export potential identified
- Testing infrastructure: 220 labs recognised for product testing across India
- Also responsible for sugar import regulation
Connection to this news: The article's call for systemic industry-government collaboration would primarily flow through APEDA's institutional framework, which already has the mandate, infrastructure, and industry linkages to coordinate export promotion but needs stronger convergence with state-level agriculture departments and private sector supply chains.
India's Agricultural Export Policy (2018) and Trade Agreements
India's Agricultural Export Policy, announced in December 2018, aims to double agricultural exports to $60 billion by 2022 (later revised) and integrate Indian farmers and agricultural products with global value chains. The policy identifies clusters of excellence for specific products and promotes "Brand India" in global markets. Trade agreements play a crucial role in market access.
- Agricultural Export Policy: announced December 2018; objective to double agri-exports and diversify export basket
- Key features: cluster approach for export crops, focus on perishables, promotion of organic and GI-tagged products
- India-UK FTA (July 2025): duty-free access to 95% of agri-food exports; expected 20%+ boost in three years
- India-UAE CEPA (2022): significant for agri-exports; UAE is a major destination for Indian basmati rice, fruits, and spices
- India-Australia ECTA (2022): preferential access for select agricultural products
- WTO SPS (Sanitary and Phytosanitary) Agreement: compliance with SPS standards is a major barrier for Indian agri-exports to developed markets
- India's agri-exports 2024-25: $51.9 billion; target: $100 billion by 2030
Connection to this news: The article highlights that trade agreements alone are insufficient without fixing domestic supply-side constraints; the Agricultural Export Policy's cluster approach and APEDA's infrastructure development schemes need to be scaled up alongside FTA negotiations to realise the export potential.
Cold Chain and Food Processing Infrastructure
India loses an estimated 16% of fruits and vegetables annually to post-harvest losses due to inadequate cold chain infrastructure. The Pradhan Mantri Kisan Sampada Yojana (PMKSY) -- formerly the SAMPADA scheme -- provides financial support for mega food parks, integrated cold chains, food processing and preservation capacity, and agro-processing clusters. The food processing sector is critical for value addition in agri-exports.
- Post-harvest losses in India: estimated at Rs 90,000 crore annually; 16% for fruits and vegetables
- PMKSY: umbrella scheme under Ministry of Food Processing Industries; covers Mega Food Parks, Cold Chain, Agro-Processing Clusters, Creation of Infrastructure for Agro-Processing
- Mega Food Parks: 42 sanctioned (as of 2025); provide common processing infrastructure
- Cold chain gap: India has approximately 8,600 cold storages (mostly for potatoes); gaps in pre-cooling units, reefer transport, ripening chambers, and packaging infrastructure
- Food processing sector contribution: approximately 32% of India's total food market; growing at 8-9% annually
- 100% FDI permitted under automatic route in food processing (except for multi-brand retail)
Connection to this news: The article's emphasis on value addition directly depends on bridging the cold chain gap; raw commodity exports (rice, wheat, sugar) dominate India's agri-export basket, and shifting to processed products requires the infrastructure that PMKSY and Mega Food Parks aim to create.
Farmer Producer Organisations and Market Linkages
FPOs serve as critical aggregation points that connect small and marginal farmers (who constitute 86% of Indian landholdings) to institutional buyers, exporters, and formal markets. The 10,000 FPO scheme provides financial support, equity grants, and credit guarantees to strengthen these collectives. For agri-exports, FPOs enable compliance with quality standards, bulk sourcing, and traceability -- requirements that individual smallholders cannot meet alone.
- 86% of Indian landholdings are small and marginal (below 2 hectares)
- 10,000 FPO Scheme: budget Rs 6,865 crore; 10,000th FPO registered in February 2026
- FPOs can register as companies under the Companies Act or as cooperatives under state/central cooperative acts
- e-NAM (electronic National Agriculture Market): 1,361 mandis integrated; enables online transparent trading; FPOs can trade directly
- SFAC (Small Farmers' Agri-Business Consortium): one of four implementing agencies for FPO scheme
- FPOs enable export compliance: phytosanitary certification, residue testing, packaging standards, and traceability documentation
Connection to this news: The article's supply-side prescription centres on the need for FPO-level aggregation to meet export quality and volume requirements; without organised farmer collectives, the fragmented nature of Indian agriculture makes it structurally difficult to comply with importing countries' SPS standards and achieve consistent export volumes.
Key Facts & Data
- India's agri-exports 2024-25: $51.9 billion; target: $100 billion by 2030
- APEDA: statutory body under APEDA Act, 1985; Ministry of Commerce and Industry
- Agricultural Export Policy: announced December 2018
- India-UK FTA (July 2025): duty-free access to 95% of agri-food exports
- Post-harvest losses: 16% for fruits and vegetables; Rs 90,000 crore annually
- 86% of Indian landholdings are small and marginal (below 2 hectares)
- 10,000 FPO Scheme: budget Rs 6,865 crore; 10,000th FPO registered February 2026
- e-NAM: 1,361 mandis integrated for online transparent trading
- Food processing: 100% FDI permitted under automatic route
- 220 labs recognised by APEDA for product testing
- Product matrix: 50 agricultural products identified for export potential