·The Hindu·15 marks·250–350 wordsEconomy

India's agricultural export potential remains underutilised despite being among the world's largest producers of fruits and vegetables. Critically examine the structural barriers and suggest a roadmap for export-led agricultural transformation.

In this answer
  1. Structural barriers
  2. The base is stronger than the record suggests
  3. Roadmap

India's horticultural output has risen from 277.35 million tonnes in 2013-14 to 370.74 million tonnes in 2024-25, contributing about 37% of the gross value output of the crop sub-sector [1]. Yet perishables remain a thin slice of an export basket still dominated by rice and cereals — the deficit is structural, not productive.

Structural barriers

  • Scale and aggregation: small and marginal holdings were about 86% of operational holdings in Agriculture Census 2015-16 [3], making export-grade volume, uniform grading and traceability hard to assure.
  • Post-harvest and cold-chain gaps: the MoFPI-commissioned NABCONS study across 54 crops and 292 districts traced heavy losses in fruits and vegetables to inefficient harvesting, handling, storage and transport, and flagged infrastructure, technology and skill gaps [2].
  • Standards compliance: sanitary and phytosanitary norms, pesticide-residue limits and certification requirements in EU/US markets remain the binding constraint for perishables [5].
  • Low value addition: exports skew toward raw produce; processing capacity for cashew and cocoa is limited, ceding margin to Vietnam and West Africa.
  • Federal friction: horticulture, mandi reform and land records sit with states, diluting a centrally designed export push.

The base is stronger than the record suggests

  • Production leadership is real — India is the largest producer of onions and shallots and second in fruits, vegetables and potato [1].
  • An institutional scaffolding exists: APEDA's statutory export-promotion mandate and the Agriculture Export Policy's cluster and perishables focus [4][5].

Roadmap

  • Anchor the High Value Crops Mission's agro-climatic clusters — coconut, cashew, cocoa, sandalwood in coastal belts; agarwood in the North-East; temperate nuts in the hills [1].
  • Aggregate through FPOs, linked to cold chains, pack-houses and accredited residue-testing labs.
  • Convert clusters into GI-branded, processed exports rather than raw shipments.
  • Use GatiShakti-aligned logistics and e-NAM price discovery to shorten farm-to-port time.

Export-led transformation is achievable because the production base already exists; what must be built is the value chain above the farm gate. A cluster-to-port approach, with states as partners, can turn volume leadership into farmer income — advancing the doubling-farmers'-income goal and SDG-2.

Sources

  1. 1Accelerating India's High Value Crop Diversification — PIB, Ministry of Agriculture & Farmers' Welfarehorticulture output 277.35→370.74 MT, 37% of crop-sector GVO, region-wise HVCM crop targeting, global production ranks
  2. 2NABCONS Study Assesses Post-Harvest Losses Across 54 Crops During 2020–22 — PIB, MoFPIpost-harvest loss causes and infrastructure/technology/skill gaps
  3. 3Improving Condition of Small and Marginal Farmers — PIB (Agriculture Census 2015-16)small and marginal holdings ≈86% of operational holdings
  4. 4Agriculture Export Policy — Ministry of Commerce and Industrycluster approach, diversification of export basket, focus on perishables and value-added exports
  5. 5Export Policy — APEDAstatutory export-promotion mandate; SPS and quality-compliance requirements for scheduled products
Practice
5 questions on this article
Check the answer for each question, or reveal all at once.
Practice MCQs →

More from this note

More on Economy