India well-positioned to see significant growth in agricultural export in 2025: Report

New Delhi:  With the government’s focus on infrastructure development, technological advancements and initiatives to promote exports, India is well-positioned to see significant growth in its agricultural export sector in 2025, according to a report on Friday.

Farmer Producer Organisations (FPOs) have emerged as a powerful tool for improving the economic well-being of Indian farmers, especially smallholders, according to the report by Praxis Global Alliance.

By pooling resources, FPOs help farmers achieve collective bargaining power, providing access to quality inputs at lower costs and facilitating market access.

“One of the most successful examples of an FPO model is Amul, the dairy cooperative, which has empowered millions of small farmers by providing them with fair prices and access to a vast market network,” said Akshat Gupta, Practice Leader, Food and Agriculture at Praxis Global Alliance.

India’s agriculture sector remains a cornerstone of its economy, employing approximately 42 per cent of the population. Its contribution to GDP stands at 18 per cent.

According to the report, with the establishment of Mega Food Parks and investing in cold chains, India can significantly reduce post-harvest losses and increase the shelf-life of its produce, enabling it to access high-value international markets.

Australia’s success in expanding agricultural exports is largely due to the Farm Export Facilitation Program (FEFP), which improves logistics, establishes export hubs, and enhances market access through better trade agreements.

“By streamlining regulations and supporting infrastructure, Australia has significantly boosted exports. India could replicate this model, addressing regulatory bottlenecks and providing infrastructure support,” added Madhur Singhal, Managing Partner, Food and Agriculture at Praxis Global Alliance.

Investments in value-added technologies can significantly increase export revenues. For example, converting raw milk into products like milk powder, whey protein, and cheese open up lucrative international markets.

Countries like New Zealand have successfully diversified dairy exports by investing in milk-processing technologies. Similarly, India can focus on processing high-value crops like fruits into juices and concentrates or producing essential oils from spices and dairy into powders and cheeses to cater to niche export markets.

Private companies play a key role in improving India’s agricultural competitiveness. Through investments in technology and innovation, several new initiatives can be taken up that ensure farmers optimize yields and reduce costs and postharvest losses.

“Looking ahead to the next year, there is a sense of optimism,” the report mentioned.

–IANS