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Trade

  • Overview

    Trade Overview

    Trade Division is entrusted with the responsibility of making policy recommendations on export and import of agricultural commodities. Trade Division is the nodal Division of the Department for coordinating/ formulating responses on World Trade Organization’s (WTO) Agreement on Agriculture with the Ministry of Commerce, with Foreign Investment Promotion Board (FIPB)on FDI in agriculture, with Ministry of Finance in matters relating to the modification in the Custom/Excise duties on agricultural commodities and with Ministry of Commerce in matters relating to Preferential Trade Agreements (PTAs)/Free Trade Agreements (FTAs) with different countries.

    The following work has been allocated to trade division :-

    • Working with Department of Commerce in Formulation of India’s position in WTO Agreement on Agriculture and other allied agreements.
    • Preparation of various returns/report to be notified to WTO.
    • All matters relating to international trade including policy recommendations in respect of agricultural Commodities.
    • Examination of proposals received from Department of Commerce relating to negotiations in respect of agricultural commodities in various Preferential Trading Arrangement (PTA)/ Free Trade Areas (FTA) and formulation of India’s offer and request list.
    • Examination of export and import proposals received form DGFT relating to agriculture commodities.
    • Formulation of policy relating to Foreign Direct Investment in Agriculture, in consultation with DIPP.
    • Examination of FDI proposals received from Foreign Investment Promotion Board (FIPB).
    • Compilation/analysis of data relating to export and import of agriculture commodities.
    • Budget proposals including suggestions in respect of modification in customs duties

    India’s position in global agriculture trade

    India is among the 15 leading exporters of agricultural products in the world. The country has emerged as a significant exporter in certain agriculture items like rice, meat, spices, raw cotton and sugar. India has developed export competitiveness in certain specialized agriculture products like basmati rice, guar gum and castor oil. As per WTO’s Trade Statistics, India’s share in agricultural export and import in the world were 2.46% and 1.46% respectively in 2014. During this year, India’s total global agriculture & allied export and import were at US$ 43.47 billion and US$ 27.31 billion respectively.

    Agriculture trade policy

    Exports - Presently exports of principal agricultural products including rice, wheat, sugar, cotton, fruits and vegetables are “free” without any quantitative restrictions. Export of pulses (excluding kabuli channa) and edible vegetable oil in bulk (excluding coconut oil and rice bran oil) is ‘restricted’ to meet the domestic demand.

    Imports- Imports of principal agriculture products are mostly “free” without any quantitative restrictions.

    India’s agricultural Exports

    Agricultural exports decreased from Rs. 2,62,778 crores in 2013-14 to Rs. 2,13,555 crores in financial year 2015-16 with a decline of nearly 18%. During 2015-16 marine products, basmati & non-basmati rice, buffalo meat, spices and cotton were top commodities of India’s agriculture exports. The share of agricultural exports in total exports of the country decreased from 13.79 % in 2013-14 to 12.46% in 2015-16.

    India’s agricultural Imports

    India’s agricultural imports increased from Rs. 85,727 crores in 2013-14 to Rs 1,39,933 crore in 2015-16 registering a growth of nearly 63%.Increase in value of agricultural imports during this period was primarily on account of imports of vegetable oils, pulses, cashew nuts, spices and sugar. Share of agricultural imports in the total imports increased from 3.16% in 2013-14 to 5.63% in 2015-16.

    FDI Policy in Agricultural Sector

    As per the present FDI Policy, 100% FDI is allowed in the following activities of agriculture through automatic route.

    1. Floriculture, Horticulture, Apiculture and Cultivation of Vegetables & Mushrooms under controlled conditions.
    2. Development and Production of seeds and planting material.
    3. Animal Husbandry (including breeding of dogs), Pisciculture, Aquaculture, under controlled conditions.
    4. Services related to agro and allied sectors.

    100% FDI is also permitted in plantation sector namely tea plantations, Coffee plantations, Rubber plantations, Cardamom plantations, Palm Oil plantations and Olive oil tree plantations through automatic route.

    Besides the above, FDI is not allowed in any other agricultural sector/ activity.

  • Commodity Profiles

    Rice Profile
    Wheat Profile
    Sugar Profile
    Edible Oil Profile
    Pulses Profile
    Cotton Profile
  • Country brief on agriculture trade relations

    Agri Trade India -Belgium 2015-16
    Agri Trade India -Brunei 2015-16
    Agri Trade India -Lithuania 2015-16
    Agri Trade India -Namibia 2015-16.
    Agri Trade India -qatar 2015-16
    India - Indonesia Agri trade 2015-16
    India - Israel agri trade 2015-16
    India - UAE agri trade 2015-16
    India Argentina 2015-16
    India -Banladesh Agri trade 2015-16
    India -Brazil Agri trade 2015-16
    India -Cambodia agri trade 2015-16
    India -Canada trade 2015-16
    India -Ecoudor Agri trade 2015-16
    India -Finlend Agri trade 2015-16 -
    India -Germany Agri Trade 2015-16
    India -Greece Agri trade 2015-16
    India -Italy Agri trade 2015-16
    India -Jamaica Agri trade 2015-16
    India Luxemberg Agri Trade 2015-16
    India- Medagascar 2015-16
    India- Mongolia Agri Trade 2015-16
    India- Nepal 2015-16
    India -New Zeland Agri trade 2015-16
    India -Norway Agri trade 2015-16
    India -Peru Agri trade 2015-16
    India -Philippines Agri Trade 2015-2016
    India -Rawanda agri trade 2015-16
    India -Romania Agri trade 2015-16
    India -Russia Agri Trade 2015-16
    India -Serbia agri trade -2015-16
    India -Shri Lanka Agri trade 2015-16
    India -Singapur agri trade 2015-16
    India -Slovak agri trade 2015-16
    India- South Africa 2015-16
    India- Suriname Agri Trade 2015-16
    India -Syria agri Trade 2015-16
    India -Taiwan Agri trade 2015-16
    India -Trinidad Agri trade 2015-16
    India -USA agri trade 2015-16
  • Agriculture trade policy and status under FTAs

    Agriculture trade policy and status under FTAs
  • Trade data on agricultural commodities with bound rate and applied rate

    Trade data on agricultural commodities with bound rate and applied rate

    Department of Agriculture & Cooperation is dealing with agriculture items/ tariff lines of Indian Trade Classification (ITC) of the following chapters. These chapters cover around 380 tariff lines at 6 digit HS level. Data of export, import, bound rate* and current applied rate** of these lines for period from 2009-10 to 2016-2017 (Apr-Sept) (in value and quantity) is annexed.
    • Chapter 6 (Live trees and other plants)- 19 lines (export/import)
    • Chapter 7 (Edible vegetables)- 67 lines (export/import)
    • Chapter 8 (Edible fruit and nuts)- 70 lines (export/import)
    • Chapter 9 (mate and spices excluding tea and coffee)- 42 lines (export/import)
    • Chapter 10 (Cereals)- 31 lines (export/import)
    • Chapter 11(Products of the milling industry)- 29 lines (export/import)
    • Chapter 12 (Oil seeds and oleaginous fruits)- 53 lines (export/import)
    • Chapter 14 (Vegetable plaiting materials)- 5 lines (export/import)
    • Chapter 15 (vegetable oils)- 32 lines (export/import)
    • Chapter 17 (raw and refined sugar under heading 1701)- 6 lines (export/import)
    • Chapter 23 ( oil meals) -23 lines (export/import)
    • Chapter 52 ( raw cotton of subheading 5201,5202 and 5203) – 5 lines (export/import)

    In 2015-16, our major agriculture exports were- rice (chap 10), cotton (chap 52), sugar (chap 17), cashew nuts (chap 8), castor oil ( chap 15), genus capsicum (chap 9), onion ( chap 7), seas mum seeds (chap 12), and guargum (chap 13).
    In the same year, our major agriculture imports were- crude and refined palm oil (chap 15), crude soya bean oil (chap 15), raw cashew nuts (chap 8), crude sunflower oil (chap 15), lentils (chap 07) ,peas (chap 7), almonds in shell (chap 8), moong/urad ( chap 7) and chickpeas ( chap 07)
    * Bound Rate- It is the highest level of duty notified in WTO that the country can impose
    ** Current Applied Rates- Duties applicable as on date

  • Trade Statistics

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