The Aam Aadmi Party (AAP) government led by Bhagwant Mann has been formed in Punjab with a bumper mandate. It’s a mandate for high expectations on account of various guarantees offered by AAP. Though the priorities of the new government will be multifaceted, one area which needs to be worked upon with due diligence is farmers’ decent income, put in place with fine-tuned State Agriculture Export Policy (SAEP).
The ever longest agitation led by Punjab farmers was not just to repeal the three farm laws but also for decent income against the poor financial gains in agriculture. The central government has had a Minimum Support Price (MSP) for several decades now, but that has not resolved the problem of agrarian distress. The demand for a legally mandated MSP regime is likely to be feasible or sustainable in the long term whereas the missed opportunity is an export-led agricultural revolution in the state to increase farmers’ income. The new government has to work hard on this missed opportunity to increase export-led agricultural growth in Punjab, which will be a big boost to the farmer’s income, bringing overall resilience to an agrarian state’s economy.
The demand for a legally mandated MSP regime is likely to be feasible or sustainable in the long term whereas the missed opportunity is an export-led agricultural revolution in the state to increase farmers’ income.
The central government had unveiled its Agriculture Export Policy (AEP)in December 2018, directed the state governments to draft their policy to achieve the target of decent farm income. Being the harbinger of the country’s farm sector, Punjab is devoid of a well-oiled state-owned agri-export policy for its farm produce, while Maharashtra is the first state that has launched its own Agriculture Export Policy, seeking consistency in the centre’s export policy to promote the state’s agri-export.
Also Read: Not Guaranteed MSP, an Agriculture Export Policy Can Increase Farmers’ Income
Punjab ranks third in overall food grain production despite that farmers’ distress is visible across the state. A skewed MSP-dominated system of rice and wheat leads to overproduction of these crops causing water table depletion. Further, it discourages farmers to grow other cash crops and horticulture products, which have higher demand and subsequently could lead to an increase in farmers’ income. It seems logical that instead of bypassing the market by using MSPs, the AAP government should make serious efforts to enable farmers for the global market.
To a great extent, the solution to the economic distress of Punjab farmers is through a stable and predictable Agriculture Export Policy which aims at reinvigorating the entire value chain from export-oriented farm production and processing to transportation, infrastructure and global market access. Punjab needs to have a farmer-oriented strategy to achieve the twin objective of food security for the country as well as a prominent agriculture exporter, that will deliver incomes into the pockets of farmers through crucial export opportunities.
Since the green revolution in the 60s until now, agricultural policy focused on food security and price stabilisation with neglect of export-led growth. The central government is also spending huge money on procuring and maintaining food stocks over the strategic requirements, with warehouses overflowing. The Green revolution led by Punjab now to be shifted towards agriculture export revolution may lead to catching up with dominating agricultural exporter countries.
Punjab has a huge potential to increase agri-export. From the food bowl, the state will become a farm export bowl of India in the field of dairy products, processed vegetables, buffalo meat, poultry, maize and maize products, basmati rice, honey, processed fruits, juices, fresh vegetables and fruits. Punjab Agri-Export Corporation has claimed to identify potential clusters based on production, processing and existing infrastructure target to increase the state’s contribution in India’s Agri and allied products from Rs 14,000 crore in 2017-18 to Rs 21,000 crore by 2022-23 and to Rs 32,000 crore by FY 2027-28. At present, the major importers from Punjab are Saudi Arabia, Iraq, the US, the UAE, the UK, Pakistan, Kuwait, Oman, Iran and Vietnam.
The state has significant production and surplus volumes of fruits like citrus (kinnow), guava and fresh vegetables like chillies, okra, beans, peas, brinjal, potato, tomato, ginger, coriander, and more. However, these crops and respective clusters are not being considered for export purposes and are traded in local and other states’ markets mostly.
Similarly, the new government of Punjab can explore the new avenue under free trade agreements (FTAs) with different nations to get duty-free market access for its fresh and frozen bovine meat, poultry, fruits-vegetables and dairy products. In December last year, the UAE lifted a ban on the import of eggs and other poultry products from India, conceding a long-standing demand.
Stringent norms imposed on pesticide residue chemicals hindered exports of basmati rice to the EU, Japan, the US, and so on. Punjab, which contributes more than 90% of basmati exports, banned the sale of pesticide-containing chemicals like Tricyclazole and Buprofezin. To become an export leader in rice, Punjab has to develop tailor-made varieties like red rice liked by the US and some other varieties required by the EU and Japan also.
To become an export leader in rice, Punjab has to develop tailor-made varieties like red rice liked by the US and some other varieties required by the EU and Japan also.
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