MUMBAI, 17 May 2025: With the India-UK Free Trade Agreement (FTA) now finalized and talks with the European Union and other global blocs progressing steadily, India faces a rare and timely opportunity to recalibrate its agriculture export strategy.
But despite being among the top producers of rice, wheat, fruits, vegetables, milk, and more, India’s share in global agri-exports remains modest—around just 2.2%.
This gap signals an urgent need for systemic reform. Free trade pacts are not just about market access—they're about domestic readiness. For Indian farmers and exporters to benefit from FTAs, the country must fortify two key pillars: compliance with international food safety standards and professionally managed trade promotion.
Trade Without Traceability No Longer Tenable
In major markets like the EU, food safety standards are evolving rapidly. They now encompass not only residue limits but also traceability, labeling, sustainability, and production practices. Even developing markets are tightening regulations under pressure from rising public health awareness.
Unfortunately, India’s fragmented regulatory ecosystem is ill-equipped to respond effectively. Agriculture, livestock, and marine products fall under different ministries. Food safety is governed by the FSSAI, while pesticide and drug standards fall under entirely separate agencies. Meanwhile, trade negotiations are handled by the commerce ministry—leading to policy contradictions and export setbacks.
Case in point: While the commerce ministry was negotiating to increase tolerance levels for tricyclazole (a fungicide critical for basmati exports), the agriculture ministry moved to ban it domestically. Similarly, fungicide mancozeb faced domestic regulatory uncertainty while still being pushed in export markets. Inconsistent approaches weaken India’s credibility with trading partners.
Institutional Gaps and Poor Coordination Undermine Access
When importing countries change standards, Indian embassies may provide alerts, but domestic response is often delayed and uncoordinated. Regulatory changes are processed ad hoc, and small exporters remain largely unaware of evolving compliance needs. Traceability remains low, especially when products are sourced from local mandis.
As a result, India often fails to investigate rejected consignments thoroughly or provide credible root cause analysis. This undermines trust and subjects future exports to higher scrutiny. Digital tools, such as export portals, are not sufficiently robust to provide real-time, commodity-specific guidance.
Export Promotion Still Event-Driven, Not Strategy-Driven
Trade promotion efforts in India remain limited to expos and buyer-seller meets. In contrast, countries like Thailand, Australia, and Taiwan operate permanent trade centers that foster long-term buyer relationships and monitor market trends in real time.
While infrastructure investments—cold chains, logistics, processing—are vital, they are not enough. India must also build market-specific engagement platforms and commodity-focused export councils that function year-round. Countries like Kenya and Ecuador have demonstrated success with such models in flowers and fruit exports.
Governance and Leadership Reform Is Critical
Export promotion bodies need a governance rethink. Currently dominated by government appointees, they often lack agility and accountability. Countries that have empowered private-sector-led trade bodies have seen faster decision-making and better results. India should consider increasing private sector leadership in its export governance ecosystem.
Toward a Global-Ready Agri Export System
India must embed technically skilled experts within its trade apparatus—experts who understand both global standards and domestic realities. The proposed Global Trade Promotion Organisation must include agriculture and allied sectors in its mandate, equipped with data, compliance tools, and authority to act across silos.
Capacity-building must go beyond routine workshops. Partnerships with global institutions—like the Netherlands-based Centre for Promotion of Imports—can help Indian exporters meet rising standards. QR code-based traceability, real-time alerts, and product-market guidance—as seen in Ecuador—can offer strong templates.
Free trade agreements can transform India’s agri-economy—but only if the domestic system is ready to deliver. The future of India’s agricultural exports will not be determined solely in negotiation rooms. It will depend on coordinated governance, technical preparedness, and strategic, sustained global engagement.
In today’s trade ecosystem, credibility is currency. India must earn its place not just by opening markets—but by proving it's ready to meet them.
By Jagdish Kumar
Image credit: indiashippingnews.com
