The Government-owned Food Corporation of India (FCI) can earn over Rs 25,000 crore through exports of about 17 million tonnes (MT) wheat lying in its open warehouses across various States, stated a just-concluded study by the apex industry body — ASSOCHAM.
A study titled ‘Agri Exports: High Potential and Action Agenda’, conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) stated, “Since the quantity of wheat stored in open warehouses would rise further with expected arrival of wheat this summer, it would be more sensible to export the same and reduce the potential losses due to foodgrain deterioration together with the interest and storage charges incurred by FCI.”
Besides, such exports of food grain, while earning foreign exchange would also trim the current account deficit running into $75 billion each year, it added.
“The study has strongly advocated a long-term agricultural exports promotion policy to bring improvement in yields, product-wise export zones, incentives to private sector, infrastructure investment and targeted export levels is imperative to raise economic growth and narrow down the rising current account deficit, more so as agricultural exports have the potential to be the second most significant foreign exchange earner after software and services exports,” said the ASSOCHAM president Rajkumar Dhoot, while releasing the chamber’s study.
“The Government should set a $50 billion target for agricultural exports for the current financial year of 2013-14 which should subsequently be raised to about $70 billion in 2017 to help raise rural households’ income, reduce rural poverty, boost the gross domestic product (GDP), raise farm employment and spur the overall demand for fast moving consumer goods (FMCG),” said Rajkumar Dhoot.
The ASSOCHAM study has also laid thrust upon giving encouragement to private sector participation for luring investments to tap the vast potential in exports of a huge variety of fresh fruits produced on a large scale across India.