TOPIC

AGRICULTURE EXPORT IN INDIA

Submitted By: Supervised By:

Name: Name of Supervisor:

E.No: Designation:

Batch:
 DECLARATION

I declare that the NTCC entitled ______________________________ is the outcome of my own work
under the supervision of _____________________, Amity University Uttar Pradesh.

I further declare that to the best of my knowledge this dissertation does not contain any part of any work,
which has been submitted for the award of any degree either in this University or in any other University
without proper citation.

Date: Name

Place: Enrollment No.

 CERTIFICATE

This is to certify that the research work entitled ________________ has been carried out under my direct
supervision and guidance, by ____________, Enrollment No. ________________. The techniques and
methods described were undertaken by the candidate herself/himself and observations have been
periodically checked by me.

It is further certified that the candidate has also fulfilled all the prerequisites necessary for submission of
this dissertation in partial fulfillment of her/his __________________.

Date: Name of Supervisor

Place:

Amity University Uttar Pradesh

TABLE OF CONTENTS

DECLARATION 2
CERTIFICATE 3
CHAPTER 1 -INTRODUCTION 5
CHAPTER 2- LITERATURE REVIEW 6
CONCLUSION 22
REFERENCES 24
CHAPTER 1 -INTRODUCTION

1.1 INTRODUCTION

In India, the agriculture sector explicitly or indirectly relies more than one third of the total
population. Farming remains one of the Indian economy's most critical facets. In the growth of
the agricultural sector, various factors play an important role. India has tried to maintain its
foundation by exporting various agriculture goods, which in effect have proven economically
beneficial. There have, however, been a variety of obstacles to Indian agriculture being ignored.
The researchers concentrate on the specific barriers to the development of agricultural exports of
India in this particular report.

Farming also regarded as India's backbone is responsible for roughly 14 per cent of India's GDP
(Gakhar and Kumar, 2015). Different factors are essential in determining the quantity of
agricultural products exported from India. The production of agricultural products is hindered
primarily by two forms of problems. Sen and Abhijit (2010) focused on internal and external
problems. The Indian government's lack of focus on agriculture has contributed to its depletion.
The numerous trade policies and sanctions that have been implemented have made exporting
their goods very challenging for producers. The government focused mainly on the domestic
market and thus created problems in the export of farm products. India's export farm has
encountered several obstacles in the current scenario. Agricultural exports play an significant
part in the stagnation of the Indian economy in recent times. India is the biggest agricultural
commodity cycle in the country, according to statistics. India has weak rural highways, which
have an effect on the timely delivery of input and transfers of production from Indian farms. The
irrigation systems in some parts of the world are inadequate which lead to crop failures due to a
lack of water. More than 30% of the farmers' output in other areas is wasted by the lack of seed
quality and poor farming methods, a lack of cold storages and harvest spoilage, a lack of
coordinated retails and competitive buyers, thereby limiting Indian farmers' capacity to sell
surpluses and commercial crops (Gakhar and Kumar, 2015).

The export manufacturing cycle became the government's top priority and the emphasis shifted
from the agriculture industry. External challenges, according to Chand et al. (2011), involve the
emergence on the global market of massive pressure from developed nations that contribute to
the marginalization of India's agricultural products. Trading conditions of the developing
countries are much more flexible and provide a greater exposure to the international economy.
Because of the huge inhibitions in the export of agriculture products among Indian officials,
Indian exporters have not succeeded in controlling the prices of their export goods, resulting in
loses of successful foreign markets.

CHAPTER 2- LITERATURE REVIEW

During the last ten and a half decades Mathur, Das, and Sircar (2006) addressed patterns in
agricultural output development in India. The analysis examines factors influencing agricultural
growth and analyzes the constraints influencing its sector development. In the era from 1990
until the recent past there was a downturn in agriculture's growth rate. This is followed by the
recent fall in yields for many food crops per hectare. The pace of growth of agriculture and, more
specifically, food grains are greatly diverging through nations. The study at all rates of India
between 1990-91 and 2003-2004 shows that the key factors in India's agricultural growth are
government spending on agriculture including government funding and subsidies for fertilizer
usage and energy use for agriculture. At the same time, the state-wide review of the effects from
the panel regression reveals that the agricultural commodity is strongly and favorably based on
government food, fertilizer, rain and population expenses at current rates.

Ray (1983a) is basically an environmental feature that can be shaped by human activity in terms
of volume of output volatility. The Author proposed that I raising the volatility of rain and rates,
and (ii) growing the productivity vulnerability to variance of rainfall rather than growth in
efficiency, induced increased demand uncertainty following the introduction of green revolution
technologies. A further related yet more comprehensive analysis by Ray and two other authors
found that in Chand and Raju there has been significant growth in amplitude of performance
volatility for all crop categories with the exception of wheat and traces of uncertainty in food and
food processing are very relevant in the field of food security and macroeconomic stability
(2009). Agricultural development faced a high risk; it influences farmers' incomes and
agricultural decision. During different periods, uncertainty in the region, decrease and yield of
important crop and aggregate crops was studied at the national and state levels. Such cycles are
distinctly visible in the country's main policy interventions and in the introduction of modern
agricultural technologies. Moreover, the analyzes are further broken down with data from the
Andhra Pradesh state at district level. Because agroclimate conditions differ tremendously
between states and districts, a breakdown study shows micro-level uncertainty, which is more
important for producers and consumers.

Mahendradev (1987) recorded a steady but slight decrease in food grain volatility in all levels of
India compared to state rates. Mahendradev, (1987) Environment analyzes adapted and
unadjusted for all major countries of the world, growth in food grain development. Based on the
year-to-year shift in production standard deviation, the report concluded that volatility was
decreasing slowly but slightly in all of India. For certain instances, there has been a decline and
an rise at state level in several other nations. Additional important findings of this study related
to the topic of instability were: after 1979-80 food grain instability fell to 8,18 percent at all rates
in India but only a small decrease was observed in the span 1960-1961-1969-70-1969 to 11,16
from 1970-71 to 1979-80. Secondly, the writers thought that because of variations in the
sampling intervals the findings were different from the previous research.

Larson et al (2004) argue that the green revolution played a key role in growing food grain and
other crops in India, albeit at the expense of greater growth and yield uncertainty. They also
examined field, yield and output volatility for major plant crops in India by splitting the time
from 1950-51 to 2001-02 into pre-green (1951-1965) and post-green (1968-22) phases. The
paper recorded a 153-per-cent increase in output instability for food grains, and a 244-per-cent
increase in yield instability between the two divisions. On this basis, the authors concluded that
the commonly adopted introduction of green breakthrough technologies has increased volatility
in food grain yield and production. The effects of volatility in the output of food grain recorded
in this paper have been significantly inconsistent. Although instability in cereal and pulse output
was recorded to have increased by 5%, in the same periods instability in food production was
recorded to have increased by 153%, which is the amount of cereals, cereal and pulse.3
However, after 1968 the analysis had not divided into subperiods in order to decide whether
instability with the success of green revolts shifted. The literature review reveals that in the
literature there is no agreement on changes in agricultural production volatility in different times
and that there is a complete void in investigations of improvements in the uncertainty of farm
production due to the country's growth of modern technologies.

Sharma et al, (2006) had been more robust in the 1990s than in the 1980s when the output of
individual plants and overall food grain was more high. The effects of this analysis can not
derive from the impact of green revolution technologies on the volatility of growth. It did not
cover pre-green revolution time and findings. Because of several reasons, Malik et al., (2004),
suggest that the pace of direct growth of food-grain usage has slowed. First of all, during the
1991-2001 period, population growth fell from 2.39% annually over the previous decade to
2.16% each year. Second, the food system is increasingly diversifying with an rise in per capita
income and increasing tastes and desires. The revenue elasticity of demand for food grains has
decreased significantly owing to such a diversification of usage. In rural as well as in urban
regions, consuming habits have shifted. The history of food grains intake over the years indicates
a gradual decrease in cereal intake in both rural and urban areas.

During 1975-76 until 1999-2000, Srivastava(2003) developed a combination of the growth rates
of the area, the production and the pulse productivity across eastern Uttar Pradesh. The findings
indicate that areas and pulse output have dropped by 1.8 and 0.67 percent per year, but efficiency
grew by 1.18 percent per year at a cumulative growth rate.

Sharma and Sharma (2003) have studied tea output and export performance and have stated that
the growth in regions, quality and productivity of tea have been significant. In 1950, Indian
exports of tea accounted for 72.17% of overall exports, a slow decrease of which to 23.79% in
1999.

Malik et al. (2004) studied patterns that control the world's and India's areas of onion
manufacturing, output, and profitability, and also evaluated India's oion export pattern.
Compound growth rates determined using the exponential method Xt = a bt Where, Xt: Area /
Output / Onion Export / Time a: Intercept a: Vector regression Compound growth rate (r) r-
dated: (Antilog b-1)x 100 Chengappa,(1982), approximate growth rate, development, India
coffee yield, determined using the exponential sort Yt = bt model were used for numerical
growth rates. In preliberalisation (1980-81- 1990-91), the global rate of growth and
productiveness of cashes (1991-92-2000-01), reported Velvan (2004), but in post-crowd India,
the development growth rate was lower (4 per cent) compared with the post-crowd Indian (1,5
per cent) average. Increased increase in imports (20,89) exceeds development in machine nozzles
in exports (6,31). The Gujarat laboratory is the first to provide a statistically meaningful rate of
pattern development of 4.7 per cent per year, with substantial variations compared to the
previous decade, in accordance with the Gujarat Agriculture Dholakia report (2010). During the
last decade (2000-01 to 2009-10), the pace of development and the degree of variability have
also increased, raising the statistic importance standard of the estimates. Gujarat reveals the
economic development of actual GSDP has gradually increased over fifty years. The economy
started to expand throughout the fifth decade of its independence with a strong pace of growth of
8.1 percent throughout the 1990s.

This is the true characteristic of a Gujarat economy that reflects a double digit rise in agriculture
over a span of 6 to 7 years. Dholakia (2007) The improvement made in the manufacturing,
telecommunications and service sectors in the state is not to be disrupted, although a very strong
development in the agricultural sector is triggered by considerable pulse production. Therefore,
for study, the duration of the Sequence, respectively the 1970-91 Green Revolution and the
1991-2005 reform era. The State was able to build and expand various industries by allowing the
best use of back ward links in the network. There have been significant resources and
complementarities.

For the time after the advent of the Green Revolution, Pathak & Singh (2007) has been
evaluating production output and productivity in major state crop / crop groups using growth
levels (TGR). The same seemed to have been removed from the study of CGRs between the
years 1968-69 and 1969-1970. Therefore, during the era 1970-2005, agricultural growth shows
various production phases. The productivity rates of Jowar, bajra, maize, all cereals, all food
grains, groundnut and sesame increased and significantly rose during the reform period in
comparison to the earlier GR period. The rate of-) (negative development of sugarcane
productivity was 1. 28%. 28%.

B. R. Shah, (2007) evaluated, the gross food grain region soon to hit 2. The 2 goal is again 68
million hectares. The projected output of 959 million hectares is 2. Four hundred and 19 million
F. A. Opposed to the 4 mark. A minimum of 457 million M. A. Max oleaginum sown region is 2.
Production total of 2.715 million hectares is 2.271 million M. 301 million hectares. T another
3,821 million M T goal. The deficit in the aim can however be partly offset by the Rabi / summer
of 2006--07.

The key subject of this paper was study of the history of the use of pesticides in cotton by Lalitha
and Ramaswami (2007). The research will be improved if the agricultural department will
supplement it in the same year and in the following years. Secondly, it is evident that the
licensed and authorized Bt varieties of the United Nations do need extensive use of pesticides to
maintain their production. Gujarat data for an accepted Bt variety that was studied for one year.

Sukhpal singh (2007),Contract agriculture has emerged in the developing world, including India,
as an important strategy for Agrifirm procurement & for agricultural development. Gujarat has
had a few instances of long-term contract cultivation but it is a comparatively beginner for
perishable crops. This paper explores the success of the state's contract farming sector with four
case studies and concludes that it produced higher net returns by output for farmers.
Nevertheless, the deal did not protect small farmers and the threats to their output were not one-
sided.

Samar Datta (2010): Gujarat farmers need a broad range of activities, not only a diversified crop
pattern less reliant on land moisture regimes but also a variety of allied farming, especially
animal development. Gujarat's success in fruit and vegetables is higher than in other parts of
India and is continued and percolated to other sections of the world for sustainable development.

Pesticide usage trend analyzes for fiber, Iyengar (2007). Nonetheless, there might be some hints
about the likely pattern in a small year of evidence. If the Department of Agriculture is willing to
incorporate details for the same year and for the succeeding years, the study is improved. The
implementation of Bt cotton seems to have beneficial implications and a win-win scenario where
the reduction of production has been substantially reduced and the usage of pesticides has been
drastically reduced.

The contract farming project Gurdev Singh, (2007), explores why it must be mutually profitable
to a manufacturer and to a contractor. Business provides seamless supply of raw materials with
consistency at reduced prices for increased use. This is a new form of partnership with output,
without complete information about the business, the industry, the technologies and in some
cases even the seed. The importance of the method of contract farming for the purchase of
agricultural goods by processors is decided by the assumption that the business operation is
imperfectly more expensive. Under a dynamic circumstance, market competitiveness tends to
become less economical or even unéconomic over time making contractual arrangements.

Koshie and Puthiyaveettil, (2007) are more reliable than historical data to study future trading
and future price shares with regard to crop plants.' That is because not only significant
occurrences but also the consumer dynamics of the future provide a consideration for future
costs. Ideally a farmer will look at the future prices of different alternative crops which conform
with agro-climate conditions at his place and look at which crop is to be cultivated.

Shailesh Gandhi, (2007), considered that by taking on future trade, farmers can take advantage of
different prices on site. The farmers will face a variety of difficulties in the potential market and
these issues will have to be addressed with the structural frameworks. The government's proposal
to prohibit the trade in such products throws out questions over secret financial practices.

Dholakia(2010) and Rastogi seemed to have taken up the state after the year 2000 and
investigated all aspects of the Gujarat economy and agriculture. It has improved not only
agricultural production, but also considerably agricultural exports. The pattern change in the
Indian scenario is important. It is hypothesized that agriculture export development from Gujara
past – 2000 has been mainly guided by infrastructural and policy changes in order to decode the
underlying causes of export growth. 2.4 Strategy and effect on agricultural trade.

The Policy Review in India was reviewed by Shinoj (2009). Asian trade in agriculture has
doubled in the overall trade between 1995-96 and 2005-06 both exports and imports. The
average annual price of real exports grew by 13.32%, while imports grew by 11.28% on real
prices.

Singh&Singh,(2008): Agriculture Agreement aimed at developing a rational and market-oriented

agribusiness program by significantly slowly growing agritourism. Domestic aid is intended to
identify acceptable support measures for farmers. The assistance that distorts exchange is
calculated by the gross accumulated assistance.

P. and V.C. Shinoj. Mathur (2008) said that exports of different agricultural commodities from
India reacted differently in terms of their comparative advantages vis-à-vis Asia during the post-
reform era. The study "Comparative gain to Indian agriculture exports vers-à-vis Asia: a post-
reform review." In tea exports, India has had a relative advantage, but over the years has shown a
weakening pattern. In contrast with India and other countries such as China and Indonesia,
however, Sri Lanka has shown a much stronger benefit. In coffee exports a common trend has
also been observed, where Indian coffee exporters such as Vietnam and Indonesia have been
found to lose their competitive benefits. Every year, marine goods make an valuable addition to

India's trade with a large proportion of export earnings. But it can not be thought about because
of Indian marine products' leading role in the global markets. In the case of rice exports that have
periodic rises and decreases in value, new changes in the international trade scenario and
subsequent alterations in the foreign trade policies of India have shown the implications of such
exports for the agricultural sector of India and in particular for agricultural exports. The analysis
also found that India has maintained its competitive advantage while many others have been
adversely affected by export openness policies such as tea, coffee, spices and so on. The
competitive benefit of India has also slowly deteriorated for the sale of spices and cashew. In
later years, Vietnam has circumvented India in spite of its competitive advantage in exporting
cashew. In comparison to other goods, India has consolidated its position on foreign export
markets for oil meals. However, India can not speak of a competitive advantage with respect to
exports of fresh fruit and fresh vegetables. While the Philippines and Turkey controlled exports
of fresh fruits, Israel dominated fresh vegetable exports. India has not been quite happy with its
exports of meat and its supplies and aquatic goods. While marine products dominate the
agricultural exports of India, the competitive advantage of India on global markets can not be
related. It is believed that the foreign customers are rapidly requesting such goods.

Ravindra H. Dholakia(2003) is emphasizing quality levels compared to international destinations

and not the domestic sector for unique and daily supplies to the export industry. This calls for
large-scale production, secure supplies of input, good logistics, infrastructure, R&D and
upgraded technology. This involves giving priority to investments in several infrastructural
facilities and agricultural R&D besides perfecting agricultural land market and encouraging
contract farming in the state. New prospects have arisen to agri-business and agri-exports
throughout the country with the abolition of the limit and the openation of agricultural markets as
a consequence of the WTO and the General Convention on Markets and Tariffs (GATT). Like
several other states, Gujarat did not fall behind in the course of preparing reports and policies
assessing agri-processing capacity, finding constraints in the production and export of agri-
products, proposing or announcing a range of important policy steps, removing bottlenecks in
physical and financial infrastructure, and fostering R&D in the sector (CII, 2000; A closer look
at the results of the Gujarat export survey (GITCO, 2001) and other data on the success and
prospects of farming in the State shows that Gujarat has considerable potential for agricultural
exports. The exportations of agricultural products are considerably greater in Gujarat (11.9%)
than in the country (3.2%), which renders the export of agri-products from Gujarat more
responsive than domestic manufacturers or agri-producers to the weakening of the exchange rate.
Similarly, exporters of Gujarat's agri-products, on average, are seldom eligible for special
benefits for daily exporters in tiny (or at best medium) firms. We are mainly dealers, rather than
seeing them as exclusive exports of farm products as surplus supplies from the domestic
industry. Policymakers will tackle this problem as a matter of urgency to boost export efficiency.
Around 16 percent of total nation exports are contributed by Gujarat. New and converted fruit
and vegetables, beaver seeds / oil/ derivatives, sesame seeds, HPS, marine products are the major
agricultural products exported from Gujarat. But Gujarat's agricultural exports are mainly
focused on grains. The Government of the State intends, by various steps, to promote the export
of Agri items from the Region. Unique Agri Export Zones viz under the Government of India
EXIM policy drug. (1) Mango & vegetables and (2) Quality Added onion-approved by the
Indian Ministry of Commerce. The Gujarat government is also proposing that Agri export areas
be developed for groundnut, sesame, castor, isabgul, banana, potatoes, cumin and fennel. AEZ's
key goal is to raise farmers' returns by rendering them more available to exports and by
increasing their capacity to manufacture better goods unique to exports. Through the proposed
arrangement (www.gujagro.org), the State will fund the AEZ. The State and the Central
Government may not cross 50% of the costs of sampling and the receiver can only submit a
single sample once for one period to a nation in which such grant is eligible and the drug should
only have Gujarat roots. The flows in Indian agricultural exchange seem relatively modest in
comparison with other big players on the global markets and given the size of the region.
Because freedom has been an essential priority of agricultural policy, trade has been fairly
restricted. Commerce is a major objective. Nevertheless, since the adoption of the Uruguay
Round Agreement, technical advances and macroeconomic policy changes have contributed to
an rise in liberalization and have helped transform the agricultural commerce. Indian agricultural
exports in 2005 amounted to $9.3 billion, while imports totaled about $5.5 billion. As such, India
has a modest surplus of just under $4 billion, net exports of farm food items. Exports almost
doubled between 1993-1995 and 2003-2005, although imports almost tripled. Exportation
volume grew between $4 and $7.7 billion and imports decreased between $1.8 and $5.2 billion in
one decade. Agricultural trade surplus has generally met, although in the 1990s there were major
variations. Imports and exports have gradually risen since 2000 (MAP, 03-07, December 2007).
The OECD and FAPRI (Institute for Research on Food and Agricultural Policy) also anticipate
India to play a significant role in potential global markets It would possibly remain overall a low
net exporter. India is projected to maintain its position among the world's top rice exporters, but
since the mid-nineties (depending on crops size and domestic consumption), export volumes
have been volatile. It is actually China's second biggest rice producer and Thailand and
Vietnam's third largest net exporter. FAPRI expects its global market share to grow from 16 to
20% by 2015, as region and yields rise and demand per capita declines. In the meantime, the
OECD takes a more optimistic perspective on the outlook for growth and therefore export
opportunities. The answer to agricultural exports is so critical that several academic studies in the
last two decades have centered on this issue. The nearly unified finding from studies that
analyzed export supply determinants of agricultural commodities is that exports to LDCs are
more pricing sensitive. Consequently, demand considerations in promoting agricultural
exportations are critical. International trade research flows frequently concentrate on the design
and assessment of import and export market ties. Suppliership partnerships are typically
managed on the premise that there are limitless demand elasticities for exports and imports
encountered by each nation. As mentioned above it is less probable if this presumption is
extended to the production of goods from particular countries in the case of world suppliers of
products to a specific region. This ensures it is impossible that a surge in global demand for
exports will be achieved, without a spike in the commodity prices, at least in the short term,
without the limitless potential of the export sector or more broadly, without the exports supply
being exposed to continuously or decreased returns in reach. 2.5 World Trade Organization and
Agricultural Trade India have become both a long-standing importer and exporter of farm
commodities. After rising at only 0.78 percent per year during 1961 to 1971, India's agricultural
exports recorded a sharp rise and rose by 18.36 percent annually during the period of 1971 to
1981. In the 1980s the rate of growth in exports fell again to 2.24% per year. Initiated in 1991,
economic and trade liberalization reforms led to increase India's exports levels to 7.42% annually
(Bhalla: 2004). Though agricultural exports to India were extremely productive during the 1st
half of the 1990s, these fluctuations were severe after 1995-96. While the Agricultural
Agreement of the World Trade Organization (WTO) in 1995 would boost the export of
agricultural products to India, that does not appear to have occurred. Some indicators of a
turnaround were seen recently in 2002-03, and this pattern is predicted to continue (MTA).

However, Bhalla (2004) claims that the rapid increase in Indian exports has to a certain degree
resulted in large stocks being made open to exporters and transport subsidies. A analysis of
recent developments in the exports of various goods reveals that a significant number of items,
such as sugar, beef, refined foods, seafood, fruit and vegetables, have witnessed strong growth in
the 1990s. In the other side, cotton has been unable to maintain its growth rate since
liberalization in some conventional exports, such as tea. The main exports earner is marine
goods, and in the early 1990s oil food was also an significant commodity. Oil meal exports have
recently declined and shipments of cotton have plummeted. Two criteria-Aggregate Support
Calculation (AMS) and Product Help Estimate (PSA)-also address the estimation of domestic
support. Regarding both interventions, the cumulative effect of the entire sample of national
support policies on foreign exchange, in view of strong input grants, suggest that the net
agricultural production was taxable in this political system during 1986–2002 where all goods
are regarded as imports. Pricing assistance and input incentives have been over-compensated by
comparatively low domestic demand levels in farm gates owing to nominal import and export
limits and rising marketing prices, however generally. More recent protective figures indicate
that Indian agriculture taxes have dramatically declined through a combination of increasing
budget subsidies and smaller differences in domestic and global prices. When big commodities
are regarded as exportable, and relative prices on the borders are measured, instead of shielding
farm doors for 2001 and 2002.
In 1999-00, the amount (measured at 1993-94 prices) of input subsidies over Rs 250 billion was
far more significant than the GCFA public sector of Rs 50 billion in Gulati and Naraynan (2003).
Gulati & Naraynan It indicates that the State might only increase its spending in agriculture with
a small reduction of 20%, for example. Nevertheless, such incentives must be that to improve
public spending in agriculture science and development, irrigation canals, and rural
electrification. The decrease in assistance will also have a beneficial impact on production
output, equity and environmental sustainability. There is still tremendous political opposition and
there is a long cycle of transition to fair price of inputs. It is generally recognized that domestic
reforms are essential in the sense of increased global integration. Multimedia agricultural
liberalization's significant welfare benefits have been proclaimed to depend on working domestic
economies, and only a portion of the trade policy benefits will be realized if the reasons markets
were inflexible, or if public infrastructures were in bad shape (Anderson:2003). In its annual
report of 2001, the Reserve Bank of India (RBI) noted "the rate of development in the
liberalization of agricultural foreign exchange demands urgency and priority for structural
agricultural reform" (RBI: 2001). (RBI: 2001).

Ramesh Chand, (1999), has tried, in four crops-namely, paddy (rizle), maize, chickpea and rape-
mustard-to quantify the impact of agricultural globalization on producer surpluses, consumer
surplus and net social welfare. The analysis showed that, for the crops analyzed, free trade is
likely to have a substantial positive effect on the net return of exporting goods such as maize and
rice, whereas net returns from importers such as rape-mustard are likely to be marginally
negative. Open competition will not be adequate in rice, in which the amount of subsidy for
income is strong, to offset the negative effect of subsidies being reduced. Trade liberalization
primarily induces shifts in exports and market surplus and relies on which of the results are
greater on the net impact of the liberalization. A variety of scientists have attempted to measure
trade liberalization's impacts. The findings available suggest that the consequences of trade
liberalization are mixed. A research aimed in four crops, namely paddy(rice), maize, chichpea
and rape-mustard, to assess the impact of globalization on producers' surplus, market surplus and
net social welfare. The analysis concluded that free trade is likely to have a significant positive
influence on net return from exportable goods such as maize and rice in the case of the plants
being tested, while net return from imported plants such as rapeseed-mustard is likely to have
mild negative effects. Free trade will not be enough to offset the detrimental effect of withdraws
of assistance in rice, where the input subsidies rates are high.

The effect and policy approaches, Jayati Ghosh (2001), analyzed with particular respect to India,
nevertheless thought that more free trade in external relations had essentially little advantage to
farmers in India. This was partially attributed to global trading trends that contributed to foreign
instability and rising commodity prices. But the macroeconomic and sectoral internal policies
have also had a significant impact, decreasing farmers' security, triggering steep rises in input
prices, making selling for the direct producers of crops more challenging and exploitable and
growing institutional credit flows. Therefore, the key problem in the current sense is how trade
liberalization can be handled and how domestic policies will ensure the sustainability of small-
scale farmers and food protection in rural areas.

Sekhar, (2004) aims to determine the effects of agriculture globalization for the food protection
of the poor through the transition of foreign price fluctuations to domestic markets. Weed, corn,
ground nozzle oil, soybean oil, coconut oil, sugar, cotton and coffee have been selected for this
research. His studies have shown that excessive volatility in commodity prices, particularly
foodstuffs, adversely affects poor farm workers and the unorganized sector because their wages
are not indexed. Price instability raises the variation of cash flow for manufacturing firms and
reduces inventory collateral prices. It is important to analyze the long-term domestic or foreign
price trends and assess the degree of divergentness between the two, in order to understand the
consequences of trade liberalization, particularly import liberalization. For this reason it was
estimated that there is a demand wedge – percentage gap between domestic and foreign market
for 10 years from 1990. In his analysis, the bounding values can be reduced where they are far
higher than observed quality wedges. He continues by stating that, provided that short-term
agricultural price volatility on foreign markets is not higher than in India, foreign exchange may
be seen as a short-term price stability mechanism in the event of supply shocks. At the same
time, caution should be taken to discuss tariff ties to guard against forced subsidization cheap
imports in certain developing nations.

Anderson, (2002) has projected that complete global agriculture liberalization (inkluding the
abolition of vast OECD countries' agricultural protection) will have the impact of raising Indian
net annual agricultural and food exports by $2.7 billion, a 40 percent rise from the present export
level. Indian farm production is reportedly worth approximately $100 billion per annum. An
export rise of 2,7 billion dollars, which compares to the current average annual growth rate,
would reflect equivalent to 2.7 percent annual volume development of Gross Domestic
Agricultural Product. The assumption is that all more exports are produced from additional
domestic agricultural production and are not deviated from domestic usage. Thus the growth
levels in agricultural output could on average double in the first few years, given an sufficient
answer in supply. In its National Agricultural Strategy 2002, the Indian Government abolished
some legislative limitations. The government opened the market at the start of 2004 to purchase
food grains; exporters are now permitted, at market-determined prices, to procure rice and wheat
from farmers. In India, the food grain market policy has been very often intervening with central
and state governments active in the storage of grain and restrictions on food grain movements
across states (Jha and Srinivasan: 2004). External subsidy rates have been consistently lower
than domestic prices in certain goods, such as edible oils. Analysts concerned with this question
have consistently demonstrated that Indian edible oils are not in good competitive condition with
imports (Gulati and Sharma: 1998). Chand (2002) has shown that oily seeds, particularly in
rapeseed-mustard and soya, production is fairly competitive in comparison to the domestic and
international price ratio for oilseeds and oil. A World Bank study (1997) has also shown this.
India is on unstable land in oils (Chand: 2002). One explanation for inefficiencies is the subsidy-
driven ability for international suppliers to sell cheap petroleum. These and other findings show
that the production of oleaginous seed within the country faces a threat because of processing
and marketing inefficiency and because volatility in international prices is transferred to the
domestic market.

The USDA (2001) calculated the overall annual world welfare benefits in USD 56 billion in the
removal of inequalities in global agricultural policy. In addition, reduction of agricultural
exchange and inequalities of domestic policies may contribute to an rise of about 12 percent in
world agricultural prices. Cline reports that India's welfare gains from free agriculture exchange
would contribute to $0.82 billion by analyzing the impacts of a broad multilateral liberalization
of agriculture trade policy using an EGC model. Total liberalization of OECD agriculture policy
would raise foreign trade by more than 50% which would contribute to an average rise in real
food prices of just 5% (Anderson:2003).
Another World Bank study:2003) forecasts world prices to be much higher: 10%–20% for
cotton, 20%–40% for milk items, 10–20% for nuts, 33%–90% for rice and 20%–40% for sugar.
The results of a report by the World Bank indicate that withdrawing agricultural subsidies and
grants from all WTO members will raise exports to developed countries by 15% and imports by
12%. As a result of this study, India's exports would rise by 13%. World wheat prices are
projected to rise by about 10% and rice prices are expected to rise by around 16%. Therefore
India is a big asset in terms of economic development as a net exporter of both rice and wheat.

The effect of a liberalization of agricultural markets on the global trade flows, costs and market
balance has been examined, by Babcock et al (2002), using the Forum for Research on Food and
Agricultural Policy (FAPRI). More than two theoretical outcomes – the case of complete trade
liberalisation and economic liberalisation alone – have been studied. The findings indicate that
the world price of maize, rice and cotton are expected to be up 4.8%, 10.3% and 15%
respectively, according to a total liberalization scenario. The related price changes for maize, rice
and cotton are expected to be in the 7.6, 10.6 and 3 range respectively, under the agricultural
liberalization scenario. Owing to the reduction of export subsidies Indian wheat exports under
the maximum liberalization scenario is projected to decrease, and India is predicted to become a
net importing country by 2003/04 with a scenario for trade only. Throughout the complete export
case, the exchange throughout rice rises by 29% and in the only industrial case by around 27%.
China, India and Vietnam, led by Thailand, grab the bulk of these exports. Under the wake of
complete liberalization on average Indian rice exports are expected to rise by over 100% and just
56 percent under trade terms. For cotton, net imports of cotton dropped by 16 percent under the
full liberalization scenario. Even Indian cotton exports are up by 2 per cent in the trade scenario.
In a scenario of absolute liberalisation, India is also expected to benefit even more in the rice and
cotton sectors. However, the present analysis does not take account of the costs of shipping when
calculating exchange flows. With wheat, the transportation costs are fairly large vis-à-vis the
United States and India is potentially more competitive if it competes with the USA in export
destinations similar to the former, even after export subsidies have been abolished.

The influence of the rice development and export exchange strategy of India was investigated by
Kulkarni, K. G, (2009). In the context of the Comparative Static Model, they studied the
economic implications of such a trade policy which explains tariff and subsidy cost and benefits.
It was noted that the protectionist trade measures implemented in 2008 culminated in an overall
rise of $260 million for national social service consumers, who gained from lower costs.
Although its strategies seemed to restrict higher global prices to Indian demand, India's dominant
position in rice output could reduce the full extent of the decline in prices.

The exports to India of the pepper were examined by Kuruvila, (2001). The pepper production
and exportation development was 0.66% and 4.26% respectively between 1990 and 2000. The
growth levels in output and exports over the same time were well below the Vietnamese growth
rates of 13.40% and 7.84%. However, over the same time of development and exports, Brazil,
Indonesia and Malaysia had negative growth levels. In his analysis of export patterns in major
spices in India from 1970 to 71 to 1999-00, Rajesh et al. (2002) observed that black pepper
displayed an annual optimistic growth levels of 2,28% in quantity and 12,78% in value.

The US has advocated for duty rate limits to be extended to 20% of demand and the abolition of
quota-based tariffs. Alex F, McCalla, John Nash (2006) Increased business access and
strengthened administration regulations were also required by Cairns. The EU was less open but
did not obstruct the expansion discussion. The Harbinson plan called for a doubling of tariff rate
quotas, from 5 to 10%, although there is some recommendation for flexibility: countries that
want to reduce tariff rate quotas to 8% that offer additional entry to other markets for up to one-
quarter of their tariff rate quotas. Developing nations will once again have a slower time to adopt
such reforms. Tariffs in quota could not be regulated when the filling of quotas was less than
65% unless the good was a tropical commodity or a replacement for the output of drugs. The
US / US draft reawakened an earlier (Canada's) notion that the extension of tariff rate limits will
act as an option to some of the reductions. This proposal, which offers countries the option of
tariff cuts to greater market openness through tariff rate quotas, was revised by the draft of the
President of the General Council before Cancún.

Ramesh Sharma, (2006) stressed that export subsidies for developing countries are not an
execution problem, but are nevertheless a major concern. Few developing countries give direct
export subsidies, but some developed countries are very worried about this activity. In view of
the negative effects on exports and agricultural operations, however large net food importers that
profit from lowered food costs arising from such subsidies have taken a stance against the action.
Developing countries have taken advantage of the special provision which they consider useful
for selectively promoting niche exports in order to subsidize internal and external transport costs.
But in the coming years the overall level of subsidies would probably not be high. Any export
promotion schemes under the Subsidies Deal also are used by developing countries. In the
URAA World Bank report (2008), a team headed by Dina Umali-Deininger has to clarify the
lawfulness of those measures and highlights the need for a change in farm marketing system and
processing systems because Indian economy is growing rapidly and bringing new forces to
change. Critical weaknesses have been exposed in the system of agricultural marketing. The
study further indicated that the government will reorient its policy at this juncture and that it
needs to develop effective and productive communications strategies with public and private
involvement. B. The 'India's foreign exchange in agriculture' is highlighted by Bhattacharyya
(200 4). In order to identify structural changes, he plans to study India's history in agricultural
exchange since the 1950s. The production of agricultural trade policies was also
comprehensively evaluated. World trade trends – world trade in 2007, exports and imports of
agricultural products from regions by target, leading agricultural exporters and importers,
exportation and imports of agricultural products from certain countries in 1990–2007 are
illustrated in the WTO International Trade Statistics (2008).

The output of the Agricultural Trade in the post-reform era was evaluated by Nasurudeen, Anil
Kuruvila and Rajni, (2007), estimating rates of growth, trade open indicators and various other
indexes. Jairath M. S. Jairath M. (2008) emphasizes the value and need of agricultural marketing
technology production facilities. He says, there are still infrastructural problems in several
regions of the world that challenge agricultural and horticultural growth efforts in this area.
Working Group on Infrastructure and Policy for Agricultural Marketing Need for internal and
external trade The Agriculture Planning Committee of India, Xi five-year Plan 2007-12(2007;)
established domestic bottleneck structures, assessed the supply chain of different agricultural
products and examined the activity of the agriculture and wholesale markets of individual
farmers The Working Group has explored the emergent alternate marketing platforms and
vertical ties between farmers' marketing groups and distribution, end-use and processor sectors.
Santosh Sachdev (2000), a crucial study of comparative advantages in agricultural exports from
South Asia, in particular the India, was also examined and provided some suggestions for better
agricultural marketing. The research is focused on the underlying assumption that India as a low-
income farmland has a competitive edge in farming and industrial goods. An Indian case study
was proposed to Aaditya Mattoo, Deepak Mishra, Ashish Narain (2007). Through this report,
one of the most diverse segments of Indian and foreign farming and trade explores the
horticultural market. It performs a detailed sectoral study, from farm to market, focused on
primary surveys of producers, agents and exporters across 15 Indian countries.

Surabhi Mitteltal (2007) provides an overview of the development of horticulture in India, past
trends in areas, production and exports, domestic demand, supply and limitation. She introduces
a business case study by SAFAL to address some of the problems in this field.

C. H. Hanumantha Rao, (1995), points out that agriculture perspectives in India are bright; that
agricultural income and jobs are being increased dramatically by intensifying agri-based exports;
that is, the food security already established is being improved. He states further that food grain
export potentials should continue to enhance food protection at home, as exports can still be
balanced to guarantee sufficient food supply availability. In addition to food production, planting
and agro-processing in general are expected to be attractive industries.

M. S. Swaminathan (2006), President of the National Farmers' Commission (NCF), has proposed
setting up the WTO's Blue, Green, and Amber Boxes, with the incorporation of the Indian Trade
Organization (ITO) and its own Domestic Agricultural Help Boxes. He said that the Indian Trade
Organization (ITO), which specializes in WTO cases, can be a virtual organization. It may be
seen as an information and data bank for government to take knowledgeable and constructive
decisions. He said that, by keeping a trade watch, he can provide prompt advice regarding the
prospects, surpluses and deficits of major agricultural commodities.
CONCLUSION

India could play a greater role than it can now play in exports. With efforts in the right direction,
the position in Rice Export can also be considerably improved. Although it currently holds
second-place status, Buffalo milk, spices, mangoes and bananas are also world leaders. Also the
entry into the market of biotechnology plants. The country cultivated nearly 3.8 million hectares
of land in 2006 as genetically modified agricultural crops. It was an attempt of 2,3 million
farmers to shift from traditional crops and take technological measures on GM crops. The BT
COTTON, which gained great importance in the country and in exports, was a successful
example of this.

Some initiatives have to be taken into consideration. India must gradually adopt advanced
technology that is not only economic but also compliant with natural climate conditions. Using a
system rather than the existing climatic climate will end up with pollution. Technologies for
different rainfed areas have also been introduced to the emphasis. Although avoiding
implementation of genetic modifications will lead to better outcomes in a general application.

In work that is used for sustainable agriculture and preparation, evidence and knowledge needs
to be strengthened. In addition to analysis, caution must also be taken to close the differences
between the information gained and the findings obtained from the realistic implementation.

The government has detrimental in preparing the best executive decision and expenditure
allocations in this area, in line with the expenditure announced for the fiscal year 2015-2016.
According to policy assessments, there are two essential factors that involve urgent attention to
soil and water. This is the key explanation why the government has introduced a soil health card
to ensure that soil quality used for agriculture has been improved and strengthened. This enriches
the soil and enhances productivity. Only when the soil used for agriculture is enriched
sufficiently will organic farming be assisted. This is mentioned in Krishi Vikas Yojana's
Paramparagat. The "Singchai Yojana Pradhanmantri" was a very effective project for irrigation
access (Gakhar and Kumar, 2015) The government has also been able to draft an agreement on a
Single National Agriculture Sector to improve farmer income and prospects, and the
MGNREGA supports the steps taken so far. This program requires the states to analyze the
micro irrigation schemes.

For increasing exports, MOUs with almost 52 easy exporting countries have also been signed by
the Department of Agriculture and Cooperation that falls under the Ministry of Agriculture.
While the main emphasis of the facilities is on export and marginalization levels, other activities
such as testing and financing and the trade of germplasm have also been regarded. In addition to
postcollection control and food processing technologies, several countries have entered the
agreement with indian farmers (Gakhar and Kumar, 2015).

India's government was also able to address the convergence between growth and agriculture,
such that the farmers did not feel they had to sell their land for survival. This is the explanation
why the GOI allocated to the Development Fund for Rural Roads, farm finance and short-term
agricultural loans. The agricultural loan was also kept apart from an optimistic goal of
approximately USD 131 trillion in the financial year 2015–16. There are several measures to
rationalize foreign ties between various countries in order to prioritize exports. In consensus on
food and milk production, India and Lithuania have been combined. Gujarat's government was
able to prepare nearly 20 market communities of agricultural produce named APMCs through
NAM initiative electronic markets. Telangana has a state administration which proposes over
three years to invest US$ 12.1 trillion on completing the irrigation projects that were initiated
and take new measures to boost irrigation.In order to improve milk production with almost 42
initiated dairy ventures, the National Directorate of Dairy Growth (NDDB) has reported USD 34
million.With the aid of USD 7.7 billion, four fertilizer plants were revitalized and two new plants
set up.An exemption from credit proposed by Telangana State may limit the scheme to USD 654
million for preventing farmers from destroying them and enhancing farmers' morale. Foreign
companies and agencies were encouraged to invest in Indian cultivation, irrigation and cold-
storage schemes. Several reasons, such as reduced prices and resources, and improved
intervention study, will help to establish effective strategies. Indeed, the switch from traditional
to genetically modified crops has also opened up a range of avenues not previously explored.
This is an expected four percent rise over the coming years (Gakhar and Kumar, 2015). The 12th
5 year plan expects storage ability to raise to 35MT.
REFERENCES

1. "Agricultural Production Growth in India," discussed trends by Mathur Das and Sircar (2006).

2. Larson et al. (2005), Chinese and Indian migrant to Britain's West Indies, Indentured Labour,
Caribbean Sugar, 1838–1918;

3. B R Shah (2007), "By the year 2016: Mohanan state to totally turn to organic farming." The
Hindu. The Hindu.

4. National chart of irrigated regions: Germany (2013)

5. India FAO-United Nations and University of Bonn. "Farming in the Vedic Era" Sukhpal
Singh (2007). The History of Research Indian Journal. 14 January 2019 retrieved.

6. "The UN environment panel alerts India of severe food insecurity and water scarcity," says
Sammer Datta. Times of Hindustan. 31 March 2014 retrieved.

7. "Maratha Unification in Maharashtra," Gurdev Singh (2007). Weekly business and politics.

8. The Food Chain in Productive India, Development Extrips Agriculture, Dholakia (22 July
2010). Dholakia. The Days in New York. Checked again on April 23, 2010.

9. Bhalla, "Presentation of current developments, threats and opportunities, publisher tab," The
Group of Indian National Plants. Archived on 15 November 2011 from the launch. The 28
December 2011 was recovered.

10. The Hub of Fishery Technology Institute of India. 2008. Shekhar(2004), Exports of Marine
Products from India (see statistical section). Shekhar(2004).