New Delhi: Doubling farmers’ income, as well as agricultural exports, has been the primary focus of the Narendra Modi Government in the last five years. It was also reflected in Modi’s first independence day speech from the ramparts of the red fort after coming to back the power with a much broader mandate.
In the speech, the Prime Minister mentioned that export clusters will be formed in each and every district of the country, that is expected to catalyse the current export growth rate.
No doubt, among a variety of products, agricultural exports would occupy the central role.
Due to a wide number of agro-climatic zones, every district in the country has at least one exportable product. The recently unveiled export clusters will not only help in enhancing the export potential of these products but also the better prices for the producers.
What is an Export Cluster?
As per the experts, the cluster is a geographic concentration of interconnected companies and institutions in a particular field. Cluster creates a network of various stakeholders such as agriculture producers, processors, exporters, producer companies, export promotion agencies, research institutes, government, business services providers, financial institutions etc, to promote export from grass root levels.
It is a value-added network that works to reinforce efficiency, quality, market acceptance and sustainability for exportable agricultural produce.
According to the Agriculture Census, the average landholding in India is 1.15 hectares per farmer. In India, 85 percent of farmers are in marginal and small farm categories of less than 2 hectares. In these circumstances, clustering is the only solutions for the promotion of exports by farmers and bringing them in the chain of agribusiness.
There are successful clusters in India such as Gujarat Cooperative Milk Marketing Federation (branded Amul), grape cluster in Maharashtra (mahagrapes), etc, where small and marginal farmers are getting great benefits.
Even at the international level, clustering is a successful model, like, France (wine), Japan (Kobe beef), Colombia (Juan Valdez coffee) and New Zealand (Manuka honey).
Benefits of Export Cluster:
It is very important to have an active export cluster at the district level in order to tap the export potential across India. A large number of farmers can take the benefits of international trade. It will impact positively on the rural economy with start-ups based on agriculture technology, co-operative farming, quality consciousness among producers, etc.
India has set an ambitious target of doubling the agriculture export by 2022, from the present $30 billion to $60 billion. This is to be achieved by reducing post-harvest losses, technological empowerment of farmers, and more importantly, by eliminating the middlemen between the producers and the industries. These objectives would be achieved by district-based export clusters.
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