Indo-EU FTA :Challenges and opportunities on horticultural products-

Transcription

1 Indo-EU FTA :Challenges and opportunities on horticultural products- with special reference to Karnataka By Dr.Vigneshwara Varmudy Department of Economics Vivekananda college puttur Karnataka ,D.K.

2 INTRODUCTION Trade policy of India has undergone and is still undergoing significant changes.-fta FTAs have became a tool of much more active form of trade liberalization. FTA has a significant impact on horticultural sector of india. India &The EU have been engaged in dialogue on trade especially since EU is the world s largest trade entity. India has a biggest democratic set up in the world.

3 Horticulture in India India stands second in horticultural production in the world. In , India produced 68.4M.T of fruits,129.07m.t of vegetables,1 m.t of flowers, 1.13 m.t of plantation crops and 4.15 m.t of spices. Indian horti-products contributes around 13 percent of world s production. Karnataka s horti-sector in india 1.State stands first in the production of arecanut and coffee. 2.Second in flowers and cocoa. 3.Third in coconut. 4.Fourth in spices. 5.Fifth in fruits. 6.Sixth in cashew and vegetables.

4 Indo-EU trade in Agro-products India features low on EU s partner list. Share of india in EU is less than 0.5 percent. Amongst the EU 27, countries U.K, Netherlands and Germany accounts for percent in terms of export value. UK is the biggest importer. Out of the total exports to Eu the share of horti-products is above 41 percent.

5 India s Exports of Specified Agro-products to EU-27 in (value in Rs.lakh) Products Product-wise (total value) % of total Basmati Rice Processed fruits and vegetables Fresh grapes Guar gum Dried and preserved vegetables Floriculture Mango pulp Dried nuts Cereal preparations Jaggery and confectionery Non-basmati rice Total

6 Karnataka s rank in india Crop Area Production Fruits 6 5 Vegetables 6 6 Flowers 2 2 Coffee 1 1 Arecanut 1 1 Cashewnut 5 6 Cocoa 3 2 Coconut 2 3 Spices 5 4

7 Crop-wise rank in India Crop Rank in Area Rank in production Share in total production of india Banana Citrus Grapes Guava Mango Papaya Pineapple Pomegranate

8 Crop-wise rank in India Crop Rank in Area Rank in production Share in total production of india Sapota Brinjal Cabbage Onion Tomato Potato Sweet potato Tapioca

9 Karnataka s exports of hortiproducts to EU Coffee, cashew nuts, spices, mango, grapes, fruits, vegetables, vegetable seeds, flowers etc., These are exported to almost all EU 27 countries.

10 Exports of horti-products from karnataka (value in Rs crores) Commodity Coffee products Processed agri-products Cashew kernels Spices Gherkins Flowers

11 EU- country-wise demand Cashew-almost all countries Flowers-all countries. coffee- Italy,Germany,Belgium,Spain,Finland,Greece and France Mango-Netherland,U.K, Germany,France,Belgium,Portugal,Spain Italy. Grapes-U.K, Netherland, & Belgium Spices-U.K, Netherland & France. Arecanut- U.K, Italy & Germany.

12 challenges Trade barriers-both tariff and non-tariff Quality standards. More volatile price. IPR s-costly inputs. Challenges from traditional exporters. Difference in subsides. Delay in clearence of flower consignments.

13 opportunities E.U-27 countries demand for horti-products. Off-season markets in E.U. Surplus available in karnataka both fruits and vegetables. Increasing level of demand for grapes and mango. Karnataka s horti-sector is becoming organic which is preferred in E.U.

14 Horti-crops of karnataka having export potential. Mango. Grapes. Pomegranate. Flowers. Cashew-kernels. Coffee. Black pepper and other spices. Fresh vegetables and value-added fruits and vegetables.

15 conclusion Need to encash the E.U market. FTA provides an opportunity to expand the hortiproducts export. Need to address the challenges. By overcoming the prevailing challenges Indo- E.U trade on horti-products can increase. This trade may improve the status of karnataka state in particular and India in general.

16 . THANK YOU