The EU is the world's number one trade in agricultural products, both in terms
of imports and exports. basically, the global export or import of agricultural
products helps to fulfil the requirement of agricultural products as a time of
scarcity due to climate change. ultimately contributing to the prosperity of
farmers, industry and consumers. Over several years, the agricultural market has
faced increased volatility, which has a direct impact on stakeholders in the
food chain. unnecessary price increases can result in political unrest like in
2007-2008
The development of the agricultural trade market requires constant monitoring or
prospective analysis. which helps the agricultural trade market to stand still
or increase
Introduction
Agriculture sector plays a very important role in the economy of any developing
country and for countries like India where more than 50% of the population is
engaged in agriculture. India is the largest supplier of agricultural products
in the world. In the time of covid, when the entire country stopped or disrupted
its supply chain, India ensured its transportation very smoothly because
agricultural products were very easily scratched. Now agricultural trade is
becoming global, increasing choice for consumers in the international market and
creating perfect competition.
Every country has several factors that affect the
agricultural sector, but basically there are two main elements, the first is the
economic policy of the country. and the second important factor was the
socio-political imperative to keep food prices low on the market. agricultural
trade policy helps countries to produce and transport the product smoothly. for
any country or for any developing country, agriculture is a very important
sector to get a good economy.
WTO also has many agreements on agriculture which
include
Market Access, Domestic Support, Export Competition. Government of India
is organizing a virtual meeting with major food importing countries related to
agricultural products around the world to promote the GI which is registered
with the Government of India. They organized the 17th V-BSM with Kuwait,
Belgium, Switzerland and Iran.
The same kind of program was organized for other
countries like (geographical indication) Germany, Thailand, Bhutan, Azerbaijan,
South Africa and Qatar (organic product) USA, United Arab Emirates. The
Government of India has set up thirteen agricultural cells in Indian embassies
in Bangladesh, United Arab Emirates, Iran, Malaysia, Indonesia, Vietnam, Saudi
Arabia, Japan and Argentina.
To improve India's imports and exports in these
countries by promoting trade, technology, tourism and investment objectives.
Government of India has launched many plans and schemes to promote agricultural
production. Agricultural Export Policy 2018 (AEP) Government of India has
presented a comprehensive plan to improve the agricultural export policy.
The
Financial Assistance Scheme (FAS) is an export promotion program by the
Agricultural and Processed Food Export Development Authority. for the years
2021-2022 to 2025-2026 it was part of the financial year
Literature And Review
Agricultural trade helps in food storage for food shortages due to climate
change and other reasons essentially contributes to the prosperity of farmers,
industry, consumers. in India, Rollin plays a very important political, social
and economic field. In recent years, India's agricultural trade has grown in
global agricultural trade. The growth rate of agricultural trade in India is
around 3.5% in 2022-2023, it was 3.0% in 2021-2022[1]
Indian Agricultural Trade
India is one of the largest producers of agricultural products in the world.
approximately 58% of India's population is engaged in agriculture. India is
always on the list of one of the largest agricultural suppliers. There are so
many products from India that are in high demand in the global agricultural
market.[2]
Non-basmati rice:- is the second most exported agricultural product in FY 2022.
In 2021-22, India exported non-basmati rice worth INR 456.5 billion.
SUGAR: - in 2013-2014, India increased its sugar exports by an incredible 291%.
in 2022, India exported most of its sugar to Sudan and Bangladesh. in 2021-2022,
India exported sugar worth INR 344.44 billion
Fruits and Vegetables: -India is one of the world's largest producers and
suppliers of fruits and vegetables. in 2021-2023, India earned 65.61 billion in
fruit income. fruits like lychee, banana, pomegranate etc.
In 2021-2022, tea production in India was 1344.40 million kg. coffee production
in the same period was 3,420 million tons, a year-on-year increase of 2.39%.
India's top crop producing states are KERAL, KARNATAKA, PUNJAB, ANDHRA PRADESH,
ASSAM, UTTAR PRADESH AND OTHERS
Rice is the largest export product from India and contributed more than 19% of
total agricultural exports in 2021-2022. buffalo meat, spices, sugar are among
the largest exported products with 7%, 8%, 9%. Higher seafood exports at $7.7
billion benefit farmers from various states
WTO [World Trade Organization]
The WTO is an organization that aims to reduce excessive taxation and excessive
burdens on certain products, and for products originating from any particular
country, it basically promotes free and fair-trade practices worldwide. . which
reduced subsidies and trade barriers to improve fairness and competitiveness.
In 2015, the historic decision to cancel agricultural export subsidies and other
new rules for other forms of farm export support.[3]
WTO Agreement On Agriculture
The WTO's agricultural agreements provide a framework for long-term agricultural
market and domestic policy reform. the objective of this agreement is to promote
competitive and tariff trade practices
The agreement basically includes 3 aspects:
- Export Competition
- Domestic Support
- Access To The Market
In this agreement, WTO members commit to schedules or schedules of commitments
that set limits on the tariffs they can apply to individual products and the
levels of domestic support and export subsidies.
Committee on Agriculture
Farmers pledge to work to improve trade and politics. The current chairman is Mr
Kjetil tysdal (Norway)
Agricultural Negotiations
The agricultural trade reform did not end with the birth of the agricultural
agreement. WTO members continued agricultural negotiations on trade reform.
The WTO member took an important decision on trade in agricultural products in
2015 at a ministerial conference in Nairobi, Kenya. which includes a rule of
trade for securing food for cotton and many other purposes.
At the 2013 Bali Ministerial Conference, Indonesian ministers also agreed on a
package of issues in agriculture
Scope
The main benefit of the world's wild trade in agricultural products is to reduce
the scarcity of any agricultural product in any place and to get benefit from
the product, in India the agricultural sector contributes about 17% of the GDP
and provides employment to about 58% of the population.
International Relationships:
Agricultural trade has a major impact on international relations. as trade
increases and another country starts depending on the country, then conflicts
between those countries also decrease and peace is established.
Economic Growth:
With the increase in trade in agricultural products, the country's economy is
also improving. 17% of India's economic GDP comes from the agricultural trade
sector
Employment:
A country like India which depends on agriculture and trade. they get jobs in
agriculture. in India 58% of the population is employed in agriculture and
agribusiness provides employment at various levels.
Research
Agricultural trade also opens the door to research. How production moves around
the world. Each country has the opportunity to explore the product and develop
its own version
Limitations
Insufficient Infrastructure
This is one of the biggest limitations for any agricultural trade market. It
increases the difficulty in exporting or importing any product. Inadequate
infrastructure is an obstacle to the rapid growth of trade in agricultural
products. Especially in the countryside. problem like lack of irrigation,
market, transport. And there is no correct delivery system
Lack Of Access To Credit And Finance
Small farmers do not get loans and credits easily. the limited availability of
available credit limited farmers to invest in modern agricultural equipment and
the quality of seeds and products.
Water Shortage And Irrigation
Agriculture of developing countries like India which does not have sufficient
resources depends on monsoon for some time it is more than requirement or less
than requirement and due to poor water management, it affects the agriculture of
the country
Climate Change
Climate change is one of the biggest issues facing the world, it also affects
the agribusiness or agricultural sector.
Limited Access To Technology And Research
Limited opportunities for technology and research limit farmers to adopt new
technology that does not increase agricultural production and create barriers
Hypothesis
Can Agricultural Trade Improve Total Factor Productivity? What Is The Role Of
The WTO
Improving the overall productivity of agricultural factors is very important for
achieving high-quality and sustainable agricultural development. as the world's
major agricultural producers, WTO countries play an important role in
agricultural trade, and the WTO is well positioned to play a very important role
in improving total agricultural factor productivity.
WTO helps a country to
trade freely from one place to another and has facilitated trade. And it
resolves conflict arising from trade, which keeps the peace and allows for
better follow-up of trade. The WTO thus not only provides a valuable insight
into the relationship between agricultural trade and agricultural production.
But the argument for formulating a new policy for agricultural productivity and
promoting a more sustainable agricultural sector [4]
THE RESEARCH GAP
DIGITAL BUSINESS AND E-COMMERCE:
With the increasing digitization of economies, the impact of digital and
e-commerce on agricultural trade is an unexplored area. research could delve
into the challenges and opportunities presented by digital commerce, an easy
place for manufacturers to e-commerce
AGRICULTURAL TRADE AND CLIMATE CHANGE
The compatibility of agricultural trade with climate change and environment
commitments is very complex area research could explore the solution and effect
of climate change on agricultural sect.
Conclusion:
Agricultural trade grew rapidly in the 2000s. Most of India's population depends
on the agricultural sector. It is one of the very important industries for the
world. India's growth has grown rapidly in the agricultural sector The WTO
agreement has facilitated trade and created a competitive and fair trading
environment that has helped countries export products easily.
And now due to the
import and export of agricultural products, every country is able to produce
food and medicine and store agricultural products for itself. India's
agricultural exports increased in 2022-2023. China is one of the largest
exporters of agricultural products in the world. The global food and agriculture
trade network is becoming highly balanced.
Today, many countries are connected
to many trading partners, which can strengthen the balancing capacity and
resilience of the network. However, only a few countries still account for the
majority of value trade, and only a few countries purchase large quantities of
food and agricultural products from many different exporters. To improve their
resilience and ensure food security and a healthy diet, countries should strive
to diversify products. forced and increase their no. business partners.
List of References:
- Dr. Gopal Das Bhagwan Agriculture and food industry and exports [2023]
https://www.ibef.org/exports/agriculture-and-food-industry-india accessed 25th September 2023
- Import export federation Best agricultural product exported from India [17th October 2022]
https://importexportfederation.com/agricultural-products-exported-india/ accessed 25th September 2023
- WTO agriculture https://www.wto.org/english/tratop_e/agric_e/agric_e.htm accessed 27th September 2023
- Abizadeh,S,and Pandey. M Trade openness, structural change and total factor productivity [2009]
https://www.frontiersin.org/articles/10.3389/fsufs.2023.1100038/full
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