Source: Department of Commerce, Government of India

Tea Promotion

Indian tea in the domestic and the international markets requires new initiatives from the Tea Board as well as the tea industry for meeting emerging challenges. Keeping in view with the requirements of the export and domestic markets, there was a focus on quality control. Implementation of ISO 3720 Standards and HACCP (Hazard Analysis & Critical Control Points) has therefore acquired growing Importance. Efforts continued to be made to persuade producers to increase production of exportable quality teas & good teas of orthodox variety.

Tea Board carried out promotional activities mainly through its overseas offices located at London, Moscow and Dubai. The tea promotion abroad is carried out through various Tea Councils (India is an active member of the Tea Councils of USA, Canada, UK and Germany). Promotional activities are also carried out by the Tea Board’s foreign offices to enhance demand for Indian tea and increase market share. The market development activities of the Board include market surveys, market analysis and tracking of consumer behavior, registering of Board’s Logos in various markets as well as popularizing the usage of these logos in order to enhance the equity of Indian Tea and its various sub-brands etc. The markets in Russia, CIS, UK, Pakistan, UAE etc., continued to be of vital importance. With the lifting of COMESA, prospects of tea exports to Egypt have also opened up. To facilitate more exports to Egypt, a Tea Centre is proposed to be opened in Cairo jointly with the industry members.

The Board has organized a number of promotional activities in the country for propagating the health benefits of tea aimed at the youth and young house-wives. Generic tea promotion campaign was on a low key during 2008-09.

Efforts are being made to maintain and improve trade relations between exporters and importers by direct contact and discussions. During the year 2008-09 the Tea Board received important tea delegations. It also organized deputations / delegations from India during 2008-09. The Tea Board participated in a large number of International Fairs / Exhibitions in traditional markets and made a foray into non-traditional markets as well. With a view to diversifying the market portfolio, the Tea Board has explored new markets like Hungary.

Licensing

The Licensing Branch of the Tea Board is responsible for implementation of various statutory and regulatory provisions of the Tea Act 1953 and orders issued by the Government from time to time. The Licensing Branch issues permission for planting and replanting tea under Section 12 of the Tea Act, 1953. Licensing Branch also issues registration for tea manufacturers (both estate and bought-leaf factories). The Licensing Branch also issues registration to Buyers under the Tea (Marketing) Control Order, 2003.

The Licensing Branch issues business licences for tea exporters and distributors; non-preferential certificate of origin for tea exporters; Tea Waste licence; Tea Warehousing licences etc. Activities such as ensuring quality of green leaf used in the manufacture of made tea, ensuring implementation of the Prices Sharing formula between the tea manufacturers and green tea suppliers etc., are also looked after by in the Licensing Branch of the Tea Board.

Apart from this, the Licensing Branch also provides clarification and guidance to the tea industry and trade in relation to fiscal policies and different legislations concerning tea. Licensing Branch undertakes work relating to pre-Budget proposals, Advance Licensing etc. under the foreign Trade Policy of the Government of India. Tea Board issues registration to manufacturers of tea with added flavour under the provision of Food adulteration Act, 1954.

The total number of exporters registered with Tea Board under the provisions of Tea (Distribution & Export) Control Order, 2005 with valid export licences stood at 1035 as on 31.03.2008 as against 938 as on 31.03.2007. The total number of certificates of origin issued by Tea Board towards export of Darjeeling tea was 2015 during 2007-08 as against 3064 issued in the same period of 2006-07. During 2007-08 the Licensing Branch granted registration to 14 flavoured tea manufacturers under provisions of the Prevention of Food Adulteration Act.

Tea Research

The Tea Board promotes and conducts research on tea as per the provisions of the Tea Act, 1953. There are three tea research institutes in the country, viz., Tea Research Association (TRA) at Jorhat, Assam, United Planters’ Association of Southern India- Tea Research Foundation (UPASI-TRF), Valparai, Coimbatore, Tamilnadu and Darjeeeling Tea Research and Development Centre (DTR & DC) in Kurseong, Darjeeling, West Bengal. All these research institutes are involved in conducting basic and applied research required for the growth and development of Indian Tea Industry in general and the region specific problems of the industry, in particular.

TRA has its main laboratory infrastructure at Tocklai, Jorhat, Assam with seven advisory branches spread over North-East for the transfer of technology to the member tea estates. Similarly, UPASI-TRF has its head quarter at Valparai with seven advisory centres in three different states of South India. These two institutes are being granted financial support to the extent of 80% (Grant-in-aid- 49%; AED-31%) on certain identified items to smoothly carry out effective tea research useful for the tea industry. DTR & DC, a relatively small institute is being fully financed by Tea Board for doing tea research exclusively for Darjeeling tea industry. In addition to the above, financial grant in the form of research project are also being provided to various other National Institutes and Universities for conducting tea research useful for the industry. Fund is also provided for organizing training programmes, seminars, conferences, workshops etc. to address the regional problems and provide solution for the same.

The different broad areas of tea research conducted by the respective institutes include – Plant Improvement (Breeding, Physiology and Biotechnology), Plant Production (Agronomy and Soil Science), Plant Protection (Mycology and Entomology), Biochemistry, Tea Testing, Engineering and Remote Sensing etc. While conducting both basic and applied research, preference is given more on applied aspects considering the need of the industry. Now a days regulatory research including the studies on pesticide residue and maximum residue level (MRL), iron filing, development of different standards for tea etc. in line with the requirement of International Tea Community particularly for the export of Indian Tea to International markets.

The financial support on account of grant-in-aid paid to TRA and UPASI-TRF was Rs. 420.00 lakh and Rs. 88.86 lakh respectively and that on account of AED paid to TRA and UPASI-TRF was Rs. 266.00 lakh and Rs. 56.21 lakh during the period 2007-08. Tea Board also granted recurring expenditure upto Rs. 2.00 lakh to Assam Agricultural University for their Tea Technology course at the graduate level and Rs. 3.50 lakh for the scheme on Improvement of Tea Culture in hilly areas of Himachal Pradesh to Himachal Pradesh Krishi Viswavidalaya (HPKVV), Palampur during the year 2007-08. For DTR & DC, Kurseong Tea Board paid Rs. 12.11 lakh and for seminar, workshop, conferences etc Rs. 4.13 lakh was paid in the year 2007-08.

Labour welfare Measures

The Tea Board undertakes various welfare activities for tea plantation workers and their dependants through the Labour Welfare Scheme. The welfare activities undertaken by the Board are supplementary in nature and cover general welfare measures. The labour welfare activities are funded through the Human Resource Development Scheme of the Board as approved under the 11th Plan.

The HRD Scheme aims at achieving improvements in the life and living conditions of the Tea Plantation labourers and their dependants on the following three broad areas (a) improving the health of workers; (b) education of wards of workers; and (c) imparting training to improve skills for growers/workers and the managerial staff etc. For improving health of workers, the scheme aims to provide safe drinking water to tea garden workers and establish sanitary latrines in the labour lines. Tea Board also helps the tea gardens to establish hospitals and health centres with assistance to construct buildings and provide them with medical equipments and accessories, ambulance etc. For specialized treatment beds are reserved in specialized hospitals/health clinics etc for tea plantation workers and their dependants.

Special schemes of family welfare education programme are also undertaken in tea garden areas to educate the workers on small family norms, prevention of aids/HIV infection, drug abuse etc. Scouting and guiding activities are also encouraged in the tea areas. Financial assistance is also given to physically challenged plantation workers and their wards by providing crutches, caliper shoes, artificial limbs etc. For education of wards of workers, educational stipends are given for general education and also for specialized education. Assistance is also given for construction of school/college buildings in and around tea areas for spreading education among tea garden population. An amount of Rs.2.63 crore was spent during 2008-09 under the HRD Scheme for labour welfare activities.

II.   Coffee

The Coffee Board is a statutory organization constituted under the Coffee Act, 1942 and functions under the Administrative control of the Ministry of Commerce and Industry, Government of India. The Board comprises of 33 Members including the Chairman, who is the Chief Executive. The remaining 32 Members representing the various interests are appointed as per provisions of Section 4(2) of the Coffee Act read with Rule 3 of the Coffee Rules, 1955. The Coffee Board is mainly engaged in the areas of Research, Extension, Development, Quality Up-gradation, Economic & Market Intelligence, External and Internal Promotion and Labour Welfare. The Board has a Central Coffee Research Institute at Chikmagalur and Regional Coffee Research Stations at Chettalli, Chundale, Thandigudi, R.V. Nagar, Diphu and a Bio-technology Centre at Mysore. There are also several Extension offices located at coffee growing areas of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Orissa and North Eastern Region.

Area under Coffee

In India, coffee is cultivated in an area of around 3.88 lakh hectares pre-dominantly in Karnataka, Kerala and Tamil Nadu, which contributes about 99 per cent of the total Coffee production. There are 2,20,000 coffee holdings, out of which 2,18,617 fall within the ‘small growers’ category (upto 10 hectares) and balance 2,208 holdings fall under ‘above 10 hectares category’.

Production

Coffee production in India accounts for around 3.65 per cent of the global production of coffee. The post-monsoon production of coffee for the year 2008-09 is estimated at 2,62,300 MT comprising of 79,500 MT of Arabica and 1,82,800 MT of Robusta as against the production of 2,62,000 MT comprising of 92,500 MT of Arabica and 1,69,500 MT of Robusta during 2007-08.

   Coffee Blossom 

 Ripe Cherry ready for harvest

Domestic Consumption

The domestic coffee consumption for 2007-08 was 85,000 MT. The target for domestic coffee consumption for 2008-09 is kept at 90,000 MT considering an increase in the consumption at the rate of 5%. As against this, the domestic consumption upto 31.3.2009 was 94,400 MT. The Coffee Board has initiated several steps/programmes for increasing the domestic consumption of coffee which includes organising coffee festivals/exhibitions, imparting training for coffee brewing to the hotel sector, publicity campaigns through print and electronic media, web-based campaigns, conducting market survey in urban areas, participation in all major internal trade fairs and strengthening the performance of Indian Coffee Houses (ICH) operated by the Board.

Domestic Promotion

The Coffee Board participated in important exhibitions held in India. During the period from April’08 to March 2009, the Board participated in the Domestic Trade Fairs / Exhibitions held in Coorg, New Delhi, Trichy, Cochin, Bangalore, Kolar, Dharmapuri, Chennai, Coonoor, Kolkata, Mumbai, Hyderabad, Chandigarh and Dehradun. Special blends of pure coffee powder were sold to the public at reasonable and fixed prices through its India Coffee Depots.

Export of Coffee

India exports more than 2,00,000 tonnes of coffee in a year to over 90 countries of the world. It includes re-exported coffee after value addition. The top five export markets for Indian Coffee are Italy, Russian Federation, Germany, Belgium and Spain which absorb around 50% of total exports.

India’s coffee exports have declined in 2008-09 as compared to previous year. During the year 2007-08 a total quantity of 2,18,939 Metric tonnes of coffee was exported from India valued at Rs. 2045.52 crore (USD 502 Million). This is an all time high in rupee as well as dollar terms. Due to economic recession and slowdown in exports after September 2008, the target for 2008-09 was revised from 2,20,000 Metric tonnes to 2,10,000 Metric tonnes. The provisional exports up to the end of March 2009 was 2,04,171 Metric tonnes, valued at Rs.2292 crores (USD 521 Million). The unit value per metric tonne realised has increased by 20% in Rupee terms.

The volume of exports of coffee from India during the last seven years (2002-03 to 2008-09) is shown in the chart on the next page.

Export Promotion

The Coffee Board has undertaken various export promotion activities to enhance the export of coffee. These include (i) Participation in selected international exhibitions where the exportable grades of coffees of India are displayed and promotional literature on Indian coffee is distributed, (ii) Buyer-Seller Meets, (iii) Advertisements on the excellence and selectivity of Indian coffee in prominent overseas trade journals and magazines, and (iv) films on the unique aspects of Indian coffee. During the period i.e., from 1st April 2008 to 31st March 2009, the Board participated in the International Trade Fairs / Exhibitions held in the USA, China, Spain, Denmark, Australia, Poland, Japan, France, Ukraine, Italy, Hungary, Moscow, Dubai, Germany and Egypt.

Prices

Coffee prices in India are largely influenced by the New York Exchange (NYBOT) for Arabicas and London Exchange (LIFFE) for Robustas. The international and domestic prices have improved during 2008-09 in comparison to the previous year and the average price secured in the auctions of Indian Coffee Trade Association (ICTA) during April 2008-March 2009 was Rs. 136.16/kg for Arabica and Rs. 98.54/kg for Robusta.

Coffee Export Awards

The presentation of export awards for the best performing coffee exporters was started by the Coffee Board since 1999-2000 to motivate and encourage coffee exporters of India to augment their export performance especially to key destinations and also to increase export in the value added segment like specialty and soluble coffees.

Commerce Secretary, Shri. GK Pillai, inaugurating the Export Awards Function

Flavour of India-Fine Cup Awards

The Flavour of India-Fine Cup Award competition is being conducted by the Board on an annual basis from 2002 onwards. It is aimed at developing the culture of preparing good quality coffee through adoption of good agriculture practices & on-farm processing techniques. It is also aimed at sensitizing the coffee growers about the importance of cup quality. The Award confers recognition on the best coffee grown in different regions under different categories. In order to give greater visibility to prize winning coffees and also to project India as a producer of good quality and high value coffee varieties, the finals of the competition are held in strategic countries/markets (from 2003 onwards) coinciding with an international coffee event. This initiative has caught the imagination of the international coffee fraternity. The Board has organized the “Flavour of India 2007 Cupping competition” coinciding with the “Specialty Coffee Association of America” (SCAA) Annual Conference & Annual Exhibition at Minneapolis, Minnesota, USA during May, 2008.

The Coffee Board organized ‘India Coffee Awards Night – 2008’ on 22nd November 2008 in Bangalore to recognize and honour the top coffee exporters, the winners of 7th edition of ‘Flavour of India’ and also to award certificates to the 7th batch students of the PG Diploma in Coffee Quality Management. The ‘Flavour of India’ competition this year introduced separate awards to recognize the best coffee in each region. The ‘Flavour of India Fine Cup’ Award were given by Shri G.K. Pillai, Commerce Secretary, Government of India and Shri S.V. Ranganath, Member – Finance, Department of Space, ISRO, on the evening of India Coffee Awards Night - 2008. The “Flavour of India Cupping competition 2009” was held between 11th to 24th March 2009. The final cupping competition was held at Atlanta-Georgia - USA on 13th April 2009.

Eleventh Plan Schemes of the Coffee Board

The total XI Plan outlay for coffee is Rs.600 crore. The Plan Schemes implemented by the Coffee Board during the plan period are as follows:

i. R & D Schemes for sustainable coffee production

ii. Development Support – (Production, Quality, Capacity building and Welfare)

iii. Market Development

iv. Risk Management to Coffee Growers

v. Export Promotion of coffee

vi. Support for Coffee Processing

The physical and financial progress of the Plan and Non-Plan schemes implemented by the Coffee Board during 2008-09 is given in Table 10.3.

Welfare support to Labourers & Tiny Coffee Growers

Welfare support for the benefit of labourers working in coffee plantations and coffee curing works as well as the tiny coffee growers spread over in the entire coffee growing areas is being implemented during Eleventh Plan period. An amount of Rs. 1 crore has been earmarked for 2008-09 for executing various welfare measures for labourers.

Coffee Research

The Central Coffee Research Institute is located at Balehonnur of Chikmagalur District in Karnataka and the Regional Coffee Research Stations are located at Chettalli (Kodagu, Karnataka), Thandigudi (Tamil Nadu), Chundale (Kerala), R.V. Nagar (Andhra Pradesh), Diphu (Assam), besides the Biotechnology Centre at Mysore, and the Quality and Analytical Laboratories at Bangalore. All these institutions are engaged in taking forward various research activities as envisaged in the Eleventh Plan. The focus in research focus has been given to the ‘development of coffee leaf rust’ and ‘white stem borer resistance coffee plants’ through Marker Assisted Selection (MAS) and ‘biotechnological tools’. In addition to this, development of suitable technologies for improving the soil health and there by achieving sustainable production of coffee was given thrust.

Large scale multi-locational field trials are being conducted to improve the efficiencies of various agronomical/cultural operations like fine tuning the planting design, pruning system and spacing to increase the labour efficiency and to reduce the production cost. Efforts are being made to test the efficiency of available farm machineries like weed cutters, tree pruners, shade loppers, pit diggers, soil shufflers, sprayers and coffee harvesters.

Table 10.3

Physical and financial progress under Plan and Non-Plan schemes up to 31.03.2009

During the year, emphasis was given on developing eco-friendly measures, employing bio-control agents like bio-pesticides, botanical pesticides and semi-chemicals for the effective control of coffee diseases and pests. Studies were also conducted to evolve chemically viable coffee effluent treatment system. The multi institutional project on the “development of eco-friendly effluent treatment methods and coffee waste utilization” was concluded where it was shown that effluent water and coffee processing wastes can be effectively used for irrigation after neutralization and coffee processing wastes for the preparation of enriched compost.

An ICO-CFC funded, Multi Country Project titled “Increasing the Resilience of Coffee Plants to Leaf Rust and Other Diseases” in India, Kenya, Uganda, Zimbabwe and Rwanda has been launched during the year. One Indo-Portugal exchange programme on coffee leaf rust continued to be in operation during the year wherein scientists of both the countries visited the research organizations at India and CIFC, Portugal for understanding the mechanism of leaf rust tolerance in coffee plants. Other ongoing projects included a project sponsored by Ministry of Chemicals on the development of Neem based pesticide and a multi institutional project on ‘Integrated Nutrition Management’ sponsored by Department of Biotechnology.

Infrastructure Development at Research/Extension Farms

The development activities completed during 2008-09 include road work, electrification work at Central Coffee Research Institute, Balehonnur; water augmentation work for irrigation purpose at Chettalli; development of road and construction of pulper shed at Regional Coffee Research Station, Chundale; labour quarters at Technology Evaluation Centre, Yercaud; renovation of existing drying yard in Bodinayakanur; construction of 25,000 ltrs. capacity overhead tank and construction of additional drying yard and fencing at Gonikoppal; labour quarters at Koraput; renovation of existing laboratory for setting up the Radio Isotope Laboratory at Mysore; construction of 25,000 ltrs. under ground water tank at Minimuluru and construction of pulper shed at Kattappana.

Publications and Journals

The Board continued to release its journal titled “Indian Coffee” during the year as a monthly in Kannada and English and as a quarterly in Malayalam, Tamil and Telugu. A Hindi version is also brought out along with the English version.

International Coffee Organisation (ICO)

Authorised representative of India at ICO and Chairman, Coffee Board was elected as Chairman of International Coffee Council for the coffee year 2007-08. He has also been elected as Chairman of the Executive Board of ICO for the Coffee Year 2008-09. The international Coffee Agreement 2007 has been approved by the Council. India has signed and ratified the agreement.

III. Rubber

India is the fourth largest producer of natural rubber with a share of 8.9 % in world production during the year 2008. India is also the third largest consumer of natural rubber with a share of 9.2%. Rubber is grown mainly in Kerala and also in the States of Tamil Nadu, Karnataka, Tripura, Assam, Meghalaya, Nagaland, Mizoram, Manipur, Goa, Andaman & Nicobar Islands apart from limited experimental plantations in Orissa and Maharashtra. Rubber plantations are spread over 6.55 lakh hectares in the country. Small holdings dominate the rubber production sector of the country, which accounts for 93 per cent of the production and 90 per cent of area with an average holding size of 0.5 hectare. There are more than one million growers and about 0.8 million people engaged in the plantation sector as workforce either directly or indirectly.

The Rubber Board is a statutory autonomous body constituted under the Rubber Act, 1947 with the primary objective of the overall development of the rubber industry in the country. The Board has been implementing several schemes for the development of the rubber industry in the country under different five-year/annual plans.

Production and Productivity of Natural Rubber

The production during the year 2008-09 is estimated at 865,000 tonnes, which is an increase of 4.8 per cent over the year 2007-08. Despite of not having the best of geographical regions favorable for growing natural rubber, India holds the first position with a yield of 1876 kg per hectare (provisional) in 2008-09 as compared to 1799 kg per hectare realized in 2007-08.

Consumption of Natural Rubber

During the year 2008-09, Natural Rubber consumption in India is estimated at 8,66,000 tonnes, showing a slight increase of 0.5 per cent over the previous year. Almost all the Natural Rubber production was consumed in India during this year.

Exports

Export of natural rubber is perceived as a tool to adjust the demand-supply balance in the domestic market so that the Indian rubber farmer is not deprived of the price fetched by his counterparts elsewhere. As there is no financial incentive, export would depend on price differences in the domestic and international markets. During 2007-08, export of Natural Rubber amounted to 60,353 tonnes (worth US$ 122.69 million) against the target of 50,000 tonnes. During the year 2008–09, 45,496 tonnes (provisional) of Natural Rubber worth US$ 101.11 million was exported to different countries. The award for the best Natural Rubber exporter was presented to M/s.Pala Marketing Co-operative Society Ltd. by Shri.G.K.Pillai, Commerce Secretary during the concluding session of the two day International Conference on Natural Rubber Extension and Development (ICNRED) on 9th May 2008.

Commerce Secretary, Shri.G.K.Pillai, giving away the award for the best NR Exporter during the concluding session of the two day International Conference (ICNRED) held on 9th May, 2008 at Kochi.

Imports

Imports of Natural Rubber in 2007-08 amounted to 86,394 tonnes. Currently, Natural Rubber can be freely imported into the country subject to payment of import duty. The current applied rate of duty for dry forms of Natural Rubber is 20 per cent and that of latex is 70 per cent. Import of Natural Rubber during the year 2008-09 is estimated at 79,927 tonnes (provisional).

Prices

The domestic natural rubber prices more or less follow the trends in the international market. The international prices have been in a comfortable zone since 2003 after a prolonged slump mainly because of the economic recovery from 2002 and the subsequent economic growth. Other factors, which contributed to the recovery in NR prices, were rising oil prices and relatively lower inventory levels. The prices of RSS 4 grades in the domestic market recorded an all time high of Rs. 142 per kg during August 2008. But at the middle of September 2008, the trend changed in line with the global economic slowdown. The price of RSS 4 nosedived from the peak and reached Rs.59/- per Kg. in December 2008. By the end of the financial year 2008-09, again the prices recovered and stabilized at Rs.85/- per Kg. The yearly average price of RSS 4 grade Natural Rubber in the domestic market at Kottayam in 2008-09 is Rs.101.12 per kg, as against the price of the comparable grade of RSS 3 of Rs.103.79 per kg. in international market. In 2007-08, the average price of RSS 4 grade Natural Rubber in the domestic market at Kottayam was Rs.90.85 per kg as against the price of the comparable grade of RSS 3 in Bangkok market at Rs. 96.75 per kg.

Collection of Cess

Under Sections 12(1) and 12(2) of the Rubber Act, the Board is entrusted with assessment and collection of an excise duty as cess on indigenous production of natural rubber and remittance of the same to the Consolidated Fund of India. The rate of cess effective from 1st September 1998 is Rs.1.50 per kg. During 2007-08, the collection of cess amounted to Rs. 97.55 crore against a target of Rs. 98.00 crore. The total collection of cess during 2008-09 is Rs. 103.35 crore (provisional) as against the target of Rs. 98.00 crore.

Marketing System

Marketing system for Natural Rubber in the country is perfectly designed with a strong network of 9708 dealers, positioned across the country covering all the rubber growing belts. The marketing system is well supported by 133 value addition units and 151 exporters of Natural Rubber. To boost sales in the export and domestic market, the Rubber Board participated in 10 overseas trade fairs and 11 domestic trade fairs and provided opportunity to exporters for participating and displaying their products. Also, Indian Natural Rubber Logo unveiled by the Board endorses the quality attributes of Natural Rubber exported from the country. An efficient price collection and dissemination mechanism is functioning in the Board to create awareness about the daily price movements in the national and international markets for the benefit of all the major stakeholders. The price dissemination system equips the growers to fetch 95 % to 98% of the realization in the major terminal markets, which was indicated as the highest among the farmer realization in any agriculture commodity.

Development Activities, Extension & Labour Welfare Measures

Technical and financial support are provided to rubber and rubberwood processing industry and in particular, the small holding sector of rubber growers for improving quality, cost competitiveness and infrastructure for marketing through various measures. The Board has been allocated Rs. 580 crore for the 11th Plan for implementing six development schemes viz. Rubber Plantation Development; Rubber Development in North East; Processing, Quality Upgradation & Product Development; Rubber Research; Human Resource Development and Market Development & Export Promotion Scheme.

The rubber plantation development activities include generation and distribution of good quality planting materials, distribution of cover crop seeds, providing training for scientific exploitation of the crop, promoting voluntary organizations of small farmers for extension activities (Rubber Producers’ Societies), raising block rubber plantations in association with concerned State Governments for the welfare of SC/ST and promoting Community Processing Centres by extending technical as well as financial assistance.

Under Development schemes, the Rubber Production (RP) Department disbursed Rs. 30 crore (provisional) during 2008-09 against the target of Rs. 27.22 crore, which benefited 1,63,000 rubber growers.

Under Extension schemes of the RP Department, an amount Rs. 2.20 crore (provisional) has been disbursed among 26,350 growers through Productivity Enhancement Scheme as on 31st March 2009. During the year 2008-09 an area of 1818 ha was covered under the scheme for setting up of Agro Management units and units for Soil and Water harvesting practice against the target of 3235 ha.

Under training programme, 23,163 members of the Rubber Producers’ Societies (RPSs)/ Self Help Groups (SHGs) were benefited during the year 2008-09. Under short duration intensive training on “Tapping”, 4966 (provisional) beneficiaries in 332 batches in Traditional area and 1650 beneficiaries in 110 batches in NE region were trained during the year 2008-09. Besides, 1962 growers were benefited through Tappers Training (TT) Schools in Non-traditional and NE area. Under annual campaign meetings, 105,900 growers/tappers were participated and benefited in Traditional and Non-traditional area other than NE region during the year.

During 2008-09, the Rubber Board disbursed Rs. 2.78 crore benefiting 24,281 rubber tappers and their families under its various labour welfare schemes. Under the Price Stabilization Fund Scheme, 18,914 growers were enrolled as on 31st March 2009.

Rubber Research

During the period, the Rubber Research Institute of India and its Regional stations were involved in active research programmes under major schemes like Crop Improvement (Botany, Germplasm, Biotechnology and Genome Analysis), Crop Management (Agronomy/Soils Division & Fertilizer Advisory Group ), Crop Protection (Plant Pathology), Crop Physiology and Exploitation (Plant Physiology and Crop Harvesting), Economic Research and Advanced Centre for Rubber Technology (Rubber Technology and Technical Consultancy).

The research activities of Regional Stations in Orissa, Maharashtra, Nagrakata and Padiyoor (North Kerala) were co-ordinated under the scheme “strengthening of Regional Research Stations” and the research schemes of North-East research stations located in Tripura, Assam and Meghalaya were co-ordinated under “Research in North-East”. The scheme on research support service includes strengthening of facilities under Library and Documentation centre, Computer centre, and Instrumentation and Maintenance sections.

Major Events

A “Common Fund for Commodities” (Netherlands) funded International training on “Strategies for management of Corynespora Leaf Disease of Hevea brasiliensis” was conducted by the Plant Pathology Division of RRII from 28th April to 10th May 2008. Fourteen participants from countries like Indonesia, Nigeria, Myanmar, Thailand, Sri Lanka, Ivory Coast, Vietnam, Malaysia and India participated. The groups were given theoretical and practical trainings and were taken on a field visit to hot spot areas of the disease.

Foreign participants on a field visit during the international training on “Strategies for Management of Corynespora Leaf Disease of Hevea Brasiliensis” funded by the ‘Common Fund for Commodities’ (Netherlands) (CFC)

Processing & Product Development

Various activities were undertaken to support the rubber and rubberwood processing industry to attain international competitiveness. Special attention was given to the small holding sector to strengthen their infrastructure for processing and marketing including export.

Under the 11th Plan Scheme on Processing, Quality Upgradation and Product Development, technical and financial support has been given to the processors of rubber in the various sectors (RPS, co-operative, public and private estates) to improve quality and consistency, reduce cost of processing and strengthen environmental protection systems to attain world standards. Technical and financial support was also given to the rubber wood processors to improve quality, value addition and waste utilization since processing and value addition of rubberwood will create employment, save forest and ensure a remunerative income to the rubber growers making rubber cultivation sustainable in the years to come. The activity includes technical and financial support to a few women Self Help Groups promoted by RPSs in manufacture of rubberwood furniture.

Market Development and Export Promotion

Under the Scheme on Market Development and Export Promotion, emphasis has been given on infrastructure development for marketing of the smallholder rubber. Steps have also been initiated to set up godowns of 100 MT capacity with dehumidification facility in the rubber producing areas under the RPS sector. A 2000 tonne godown is proposed to be put up at the Rubber Park, Irapuram, near Cochin to facilitate export of rubber by providing a centralized location for quality check and packaging to international standards. The RPS and Co-operative sectors are offered working capital loans and interest subsidy to strengthen their marketing activity. The RPS sector is also supported for procurement of computers, peripherals and software. The activities include promoting rubberwood as an eco-friendly timber suited for furniture and interiors.

IV. Tobacco

Tobacco is an important commercial crop in India. India is the 3rd largest producer and the 3rd largest exporter of tobacco in the world. Tobacco contributed Rs. 10,271.55 crore as excise revenue in 2008-09 to the national exchequer. It is raised on an area of about four lakh hectares in India. The annual production of tobacco is 700 M. Kgs of FCV and different Non-FCV types of tobaccos. FCV is the major exportable type cultivated with an annual production of about 270 M. Kgs. Among the Non-FCV types, Burley, Harvel De-Bouxo Rio Grande (HDBRG) and Natu are the exportable styles. Other Non-FCV types grown in India are Bidi, Chewing, Cheroot and Snuff.

The Tobacco Board was constituted as a Statutory Body on 1st January 1976 under Section (4) of the Tobacco Board Act, 1975. The Board is headed by a Chairman, with headquarters at Guntur, Andhra Pradesh and is responsible for the development of the tobacco industry. At present, the activities of the Board are restricted to production and marketing of Virginia tobacco only. However, the Board is performing the function of export promotion in respect of all varieties of tobacco.

Production

FCV tobacco is the major tobacco variety exported from India. It accounts for 79% of the total exports by volume. It is the major type of tobacco utilized (up to 90% of total usage) by the domestic cigarette industry. The FCV tobacco is grown principally in the States of Andhra Pradesh (63%), Karnataka (36%), Maharashtra and Orissa (below 1%).

Table 10.4

Crop Size Fixed for the Year 2008-09

Source: Department of Commerce, Government

Extension

The Tobacco Board implements grower Welfare schemes like Group Personal Accident Policy and Barn and Stock Insurance Policy to the registered growers of FCV Tobacco. It also undertakes analysis of Soil / Water for cultivation of FCV Tobacco and recommends dosage of fertilizers for improving quality and yields. During 2008-09, the Board has implemented the following developmental and extension schemes for improving yield and quality of FCV tobacco grown in Andhra Pradesh and Karnataka.

• Improving Yield & Quality of tobacco.

• Supply of inputs

• Transfer of technology- developmental activities.

Flue Boxes

The Tobacco Board had organized experimental studies on Energy Conservation in curing of FCV tobacco. The existing cylindrical flue pipes in the barn are partly replaced with Flue Boxes with connecting pipes for free circulation of air. Experiments revealed that there was a fuel saving up to 15 to 20% with better cured product and 6 to 8 hours reduction in the curing time. The experiments were conducted in 81 barns in Andhra Pradesh and 49 barns in Karnataka totaling to 130 barns.

Bullock Drawn Ridgers

To enable the farmers modernize the farm operations and mechanize inter cultivation and to overcome the labour shortages, the Board had supplied 1900 ridgers to the SC/ST and women growers at subsidized cost during 2008-09 crop season in Karnataka.

Power Weeder-Cum-Ridgers

Under the Farm Mechanization Scheme, the Board had developed Power Weeder-Cum-Ridger with the cooperation of indigenous manufacturing units which are helpful to reduce the cost of cultivation and reduce the dependence on labour. The Board is planning to supply about 93 units of Power Weeder-Cum-Ridgers during 2008-09 season on subsidy basis in Andhra Pradesh.

Auctions

The major achievements of activities undertaken in this regard during the year 2008-09 include:

• A total quantity of 165.33 M. Kgs of 2007-08 Andhra Pradesh FCV tobacco crop was marketed in 20 auction platforms at an average price of Rs. 84.75 per kg. Out of this, during 01/04/08 to 03/07/08 (the last auction day for the season), a quantity of 104.07 M. Kgs of tobacco was marketed at an average price of Rs. 91.62 per kg.

• The final average price of Rs. 84.75 per kg. realized for 2007-08 Andhra Pradesh FCV tobacco crop was the highest ever since the beginning of FCV tobacco auctions in Andhra Pradesh and was more by Rs. 32.78 per kg. (78.53%) compared to average price of Rs. 47.47 per kg. realized for 2006-07 Andhra Pradesh FCV tobacco crop.

• A quantity of 65.71 M.kgs. of 2008-09 Andhra Pradesh FCV tobacco crop was marketed at an average price of Rs. 95.35 per kg. up to 02/05/2009.

• The total volume of tobacco marketed during 2008-09 auctions is 114.00 M.Kgs. which is higher by 26.35 M.Kgs. (30.06%) when compared to 87.65 M.Kgs. marketed during 2007-08 auctions.

• The average price realized at the end of 2008-09 auctions is Rs.109.71 per kg. which is more by Rs.50.48 (85.23%) when compared to Rs.59.23 per kg. realized during last year.

The quantity of 114.00 M.Kgs. marketed and the average price of Rs.109.71 per kg. realized during 2008-09 auctions are the highest ever in the annals of Karnataka auctions.

Price support operations

The Minimum Support Price (MSP) is fixed by the Govt. of India for F2 grade of Black Soil Tobacco and L2 grade of Light Soil Tobacco on the recommendation of the Commission for Agricultural Costs and Prices (CACP). The MSPs for other grades are worked out and notified by the Tobacco Board. The Government fixed MSPs of Rs. 32.00 per kg, and Rs. 34.00 per kg, for F2 and L2 grades respectively for 2007-08 FCV tobacco crop. No MSP has been announced for FCV tobacco crop in 2008-09.

The Tobacco Board had not taken up any MSP operations during 2008 auctions in Andhra Pradesh and no MSP operations have been taken up till now in the on-going auctions for sale of 2008-09 Karnataka FCV tobacco crop since the market is buoyant.

Exports

The exports of tobacco and tobacco products during 2007-2008 were 205347 M.T. valued at Rs.2022.78 crore (US$ 502.67 million) against 180988 M.T. valued at Rs.1723.42 crore (US$ 381.54 million) exported in 2006-2007.

During 2008-2009, exports of Tobacco and Tobacco Products stood at 2,24,404 M.T. valued at Rs.3,383.31 crores (US$ 736.94 million) against 2,05,347 M.T. valued at Rs.2,022.78 crores (US$ 502.67 million) exported during last year. During the year, unmanufactured tobacco exports were 1,96,628 M.T. (valued at Rs.2,708.05 crores) and exports of Tobacco products were 27,776 M.T. (valued at Rs.675.26 crores). The unmanufactured tobacco exports are growing at 9% in quantity terms and 80% in value terms, while the exports of tobacco products grew by 6% in quantity terms and 24% in value terms during this period. Overall, Exports of Tobacco and Tobacco Products increased by 9% in quantity terms, 67% in Rupee terms and 47% in Dollar terms over the corresponding period of last year.

Export Promotion Activities

With a view to promote the exports of tobacco and tobacco products, the Board had participated in the following fairs and exhibitions during 2008-09:

i. World Tobacco Latin America, 08 – Mexico during 16 – 17th April 2008.

ii. World Tobacco Asia, 08, Macau – China during 11 –13th November 2008.

A three-member delegation of M/s Tai Min Tobacco (Malaysia) Sdn Bhd, Malaysia visited India from 6th-11th May 2008 for promotion of Indian tobacco exports to China. They visited tobacco auction platforms in NLS and SLS areas and also visited the Threshing factories in and around Guntur.

The Tobacco Board had issued advertisements in the International tobacco magazines at a cost of Rs.5.98 lakh up to November 2008 for promoting Brand Image of Indian tobacco and tobacco products.

V. Price Stabilization Fund Scheme

The Price Stabilization Fund Scheme was launched by Government of India in April 2003 against the backdrop of decline in international and domestic prices of tea, coffee, rubber and tobacco causing distress to primary growers. The growers of these commodities were particularly affected due to substantial reduction in unit value realization for these crops, at times falling below their cost of production. The objective of the Scheme is to safeguard the interests of the growers of these commodities and to provide financial relief when prices fall below a specified level without resorting to the practice of procurement operations by the Government agencies. Out of the total target of 12.77 lakh growers (up to 4 ha landholding), it was decided to cover 3.42 lakh small growers (up to 2 ha landholding) in the initial phase. As on 31st March 2009, the total enrolment under the Scheme stood at 46,174.

As on 31st March 2009, the PSF Corpus Fund consisted of Rs.435.17 crore, out of which Rs.432.88 crore is contributed by GOI and Rs.2.29 crore by growers by way of entry fee. A sum of Rs. 192.60 crore as interest is also available to the Price Stabilization Fund Trust (PSFT) as on 31.3.2009. Since the launch of the Scheme in April 2003, the PSF Trust has announced Price Spectrum Bands for 2003, 2004, 2005, 2006, 2007 & 2008 and the cumulative committed financial assistance stood at Rs.4.48 crore.

However, due to default by growers in depositing their contribution, assistance of Rs.1.21 crore only has been released to tea and coffee growers till 31.03.2009. With a view to improve the effectiveness of the scheme and to achieve better results towards providing meaningful financial assistance to the growers, the Department of Commerce is in the process of restructuring the scheme.

Personal Accident Insurance Scheme

A Personal Accident Insurance (PAI) Scheme having a cover of Rs.25,000/- for growers of tea, coffee, rubber and tobacco was started from 1.1.2005 and the premium @ Rs.9/- per grower was borne by the PSF Trust on behalf of the growers. The Personal Accident Insurance Scheme was reviewed by the Government in April 2007 and the insurance cover has been increased to Rs.1.00 lakh per person. The scheme will cover the growers in the sectors of Tea, Coffee, Rubber and Tobacco having plantations up to 4 hectares only. The Scheme has been modified in November, 2008 and has also been extended to Spices sector (chillies, cardamom, ginger, pepper and turmeric) having plantations up to 4 hectares only. The Scheme will also cover the plantation workers working on these plantations irrespective of the size of the holdings. The premium of Rs.17 per annum per person is shared on 50:50 basis between the beneficiary and PSFT.

Table 10.5

Price Spectrum Bands Announced by PSFT

VI. Spices

The Spices Board is constituted under the Spices Board Act, 1986 with the responsibility of export promotion of 52 spices as shown in the schedule of the Act. The Board is also responsible for the overall development, marketing and export promotion of both small and large cardamom. The programmes for Development of Spices in North East, Organic Spices and Post Harvest Improvement as an export enhancing measure are also undertaken by Spices Board.

Production of spices

The production of small cardamom and large cardamom during 2008-09 is estimated at 11,000 tons and 4,450 tons respectively.

Export of spices

Export of spices reached a milestone by crossing one billion US dollar mark in 2007-08. The export touched a new peak in volume as well. During the financial year 2007-08, a total of 4,44,250 tons of spices and spice products valued Rs.4,435.50 crores (US $1101.80 million) has been exported from the country as against 3,73,750 tons valued Rs.3,575.75 crores (US $ 792.95 million) in the previous year. Against the previous year’s performance, the export in 2007-08 has shown an increase of 19% in volume, 24% in rupee value and 39% in dollar terms of value.

Against the export target of 4,25,000 tons valued at Rs.4,350.00 crores (US$ 1025 million) fixed for 2008-09, the achievement during 2008-09 is 4,70,520 tonnes valued at Rs. 5300.25 crores (US$ 1168.80 million) which accounts for 105% in quantity, 122% in rupee terms and 114% in dollar terms.

Import of spices

The import of spices is largely taking place for value addition and re-export except items such as clove, cassia, star anise, poppy seed, etc. which are mainly used for domestic demand. The import of large cardamom and fresh ginger is mainly taking place from the neighbouring country Nepal under the trade agreement between India and Nepal. The import of spices like pepper, clove and cinnamon is also permitted under Free Trade Agreement between India and Sri Lanka.

The Import of Spices during 2008-09 (up to February 2009) was 73050 tonnes valued at Rs. 685.20 crores (US$ 151.81 million) as compared to 90000 tonnes valued at Rs. 645.50 crores (US$ 160.60 million) in 2007-08.

Use of polythene sheets for drying chillies to improve its quality

Plan Schemes

Government has approved six schemes for implementation during the Eleventh plan period. The approved outlays of the schemes during Eleventh plan period and expenditure during 2007-08 and 2008-09 are given above:

Table 10.6

Outlay and Expenditure during XI Plan Period

Source: Department of Commerce, Government of India

New Initiatives

Spices Park

Spices Park is a new concept to reach out spice growers in various spice growing states and empower them to improve the quality of the spice produced by them through off farm quality improvement. Under ASIDE scheme, the Board has set up Spices Park at Chhindwara, Madhya Pradesh. Under the plan scheme of Export Development and Promotion, the Board proposes to set up the following 6 spices parks in growing/marketing centres during the Eleventh plan period.

i. Guntur, Andhra Pradesh

ii. Idukki, Kerala

iii. Sivaganga, Tamil Nadu

iv. Gujarat

v. Rajasthan

vi. Uttar Pradesh

The Spices Park set up at Chhindwara has been inaugurated by the Hon’ble Union Minister of Commerce & Industry on 17th February, 2009. Spices Board has acquired land measuring 124.78 acres in Mydavolu and Vankayalappadu villages of Edlapadu Mandal in Guntur District in December 2008 and 29.435 hectares at Sivaganga for Spices Park from the respective State Governments. The construction work of Cardamom complex at Puttadi, Idukki district in Kerala is progressing and is expected to be inaugurated before the next crop season. The Board is in correspondence with the state governments concerned in Gujarat, Rajasthan and Uttar Pradesh in identifying suitable locations for setting up the Spices Parks.

Hon’ble Union Finance Minister, Shri P. Chidambaram and Hon’ble Union Minister of State for Commerce, Sri Jairam Ramesh at the foundation stone laying ceremony of the Spices Park at Sivaganga, Tamil Nadu

Regional quality evaluation laboratories

Under ASIDE scheme, a Quality Evaluation laboratory has been set up at Mumbai which commenced working from 25th June 2008. It undertakes analysis of export consignments of chilli and chilli products and turmeric powder for mandatory certification.

Under ASIDE scheme the Government has approved setting up of Quality evaluation lab cum training centres at Guntur, New Delhi, Kolkata and Chennai. The setting up of the lab at Guntur is expected to be completed by the end of June 2009. The land for setting up of lab at Delhi and Chennai has been already acquired.

Electronic auction system for cardamom

The Spices Board introduced electronic auction (e-auction) system replacing the traditional manual system for cardamom (small) in Kerala and Tamil Nadu which accounts for 80% of production in the country. e-auction system provide better transparency and ensure competitive participation and thereby to realize better prices to the growers. The Board has installed common e-auction system centre each at Bodinayakannur in Tamil Nadu and Vandanmettu in Kerala, where licensed auctioneers conduct auctions.

First ever e-auction for cardamom in progress in Vandanmettu in Kerela

GI Registration of Spices

Spices Board has obtained Geographical Indication (GI) registration for Malabar Pepper, Alleppey Green Cardamom and Coorg Green Cardamom. Applications have already been filed for GI registration of Byadagi Chilli and Guntur Sannam Chilli and registration process is in the final stage.

Welfare of women

At present there are 114 women employees in the Board in Group A, B, C and D categories. A woman officer of the Board has been nominated as “Woman Welfare Officer” to sort out the difficulties/problems.

VII. Exports of Agricultural Products

Although India is an agrarian economy, it remains a marginal player in world agricultural trade, with a share of about 1% of the world trade in agriculture. Exports of agricultural products are dependent on several factors such as global demand and supply, consumer preferences, varieties traded, quality, domestic and international prices and availability of infrastructure facilities for storage, post harvest handling, quality and adherence to sanitary and phyto-sanitary standards, cost competitiveness etc.

The Government of India’s schemes/policies are influenced by the need to maximize farm incomes, safeguard national food security, generate foreign exchange and ensure availability of essential commodities at reasonable prices to the Indian consumers. The Department of Commerce has been promoting agro-exports both directly and indirectly through statutory bodies, Export Promotion Councils and Commodity Associations. In order to promote exports of agricultural produce Vishesh Krishi and Gram Udyog Yojana has been introduced under the Foreign Trade Policy. The Scheme provides an incentive upon exports of identified products in the form of freely transferable duty credit scrip @ 5% of FOB value of exports. To ensure that the products manufactured/processed out of domestic inputs are given incentives at a higher rate in comparison to the duty free imported inputs, duty credit has been reduced to 3.5% of the FOB value of exports in such cases where the exporter avails the benefit under Duty Free import of Agriculture Inputs (other than catalysts, consumable and packing materials).

In order to boost exports of flowers, fruits and vegetables, these products shall be entitled to an additional duty credit scrip equivalent to 2.5% of FOB value of exports, over and above the 5%/3% VKGUY entitlement with effect from 1st April, 2008. There are about 800 products covered under this Scheme.

During the year 2006-07, India’s total agriculture exports (including tea, coffee, marine, cotton and castor oil) were at Rs. 57376.67 crore which increased to Rs. 72685.38 crore during the year 2007-08. The major item of exports during the year 2007-08 were Rice (Basmati & non-basmati) at Rs.11731 crore, Tobacco at Rs.1928.65 crore, Spices at Rs. 4176 crore, Oil meals at Rs.7954 crore, Sugar at Rs.5404 crore, Fresh Fruits and Vegetables at Rs.2920 crore, Processed Food at Rs.2712 crore and Tea at Rs.2022 crore. In quantity terms sugar exports were at 4.6 million tonnes, rice at 6.4 million tonnes and oil meals at 6.7 million tonnes.

India’s total agriculture and allied exports were 11.35% of the country’s total exports during the year 2007-08 against 10.03% for the year 2006-07.

The tobacco sector has registered all time high remunerative prices to the tobacco growers with average price of Rs.85 per kg. for Andhra Pradesh crop season 2007-08 and Rs.106 per kg. for Karnataka crop season 2008-09.

The major agricultural products exported from India during 2008-09 were rice, cereals, meat & meat products, poultry & dairy, misc. processed items, tobacco, sugar, molasses, spices, oilmeals, spirit & beverages, fresh fruits and vegetables, processed foods, nuts and seeds. During the current fiscal year, the agri exports, excluding tea, marine products, coffee, castor oil and cotton, (April-February, 2009) were to the tune of Rs. 57,607.00 crore (US $ 12649.69 Million ) as compared to Rs. 46022.28 crore (US $ 11433.54 Million) during the corresponding period of previous year. The exports have increased by Rs.11,556 crore in rupee term and by US$ 1217 Million in dollar terms this year as compared to the corresponding period last year. The percentage increase is 25.10% in Rupee terms and an increment of 10.64% in dollar terms.

VIII. Agricultural and Processed Food Products Export Development Authority (APEDA)

The Agricultural and Processed Food Products Export Development Authority was established in 1986 under the APEDA Act 1985 for the development and promotion of the export of its scheduled agri and processed food products, presently grouped under 14 heads, including fruits and vegetables, meat, dairy, cereals, floriculture and processed foods.

The export of APEDA monitored agri and processed food products has increased from US$ 4642.96 million in 2006-07 to US $ 7154.96 million in 2007-08 registering a growth of 54.1%. During the period April-February 2008-09, the export of APEDA monitored products was US $ 6854.77 million registering an overall growth of 7.45% in dollar terms.

APEDA has been actively engaged in the development of markets besides upgradation of infrastructure and quality to promote the export of agro products. To this end it provides financial assistance to the registered exporters under the following schemes:

• Scheme for Market Development

• Scheme for Infrastructure Development

• Scheme for Quality Development

• Scheme for Research & Development

• Transport Assistance Scheme

Floriculture Products

Floriculture has been identified as a thrust area for export promotion as it is one of the rapidly growing sectors. Although the value of export of floriculture products from India has been growing yet India’s share in the world trade is less than 1%. APEDA has initiated a number of measures to actualize the vast potential that the country has in floriculture exports. This includes:

Fresh Fruits & Vegetables

India is the 2nd largest producer of fruits and vegetables in the world. The global demand for fruits and vegetable has been consistently growing during the last five years. Efforts of our exporters to step up exports of fruits and vegetables have been hampered by a host of factors, both domestic and external. These include low productivity compared to international levels, lack of the use of new technologies for pre and post harvest management of crops, lack of cold chain infrastructure, disconnect between the producer and the market, the higher cost of transportation, the stringent international quality standards and the use of SPS and TBT measures by the developed countries to restrict market access. The major steps taken to increase the competitiveness of Indian fresh produce include:

Table 10.7

Comparative Performance for the Major Product Groups during
April-Feb (2008-09)

(Value in US $ million)

Source: Department of Commerce, Government of India

• To improve the cold chain infrastructure centers for perishable cargo have been set up at International Airports at Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Thiruvananthapuram. Assistance has also been extended for such facilities under implementation at Cochin, Bagdogra, Goa and Nashik.

• Financial assistance has also been extended to various State Government agencies for setting up of integrated pack houses and also Vapour Heat Treatment plant to facilitate export of mango to Japan.

• APEDA has developed General Guidelines on Good Agricultural Practices (GAP) viz. India GAP. These are under consideration of the Department of Agriculture & Cooperation.

• APEDA has been participating in fairs and exhibitions and organizing promotional campaigns to promote Indian agri and processed food products. It had participated in 15 events in 2007-08 and is participating in an equal number in 2008-09. Promotional campaigns for Indian mango in Japan, USA, Singapore and other countries have been organized.

Processed Fruits & Vegetables

The export of processed fruits and vegetables is another thrust area of the Government. The exports from this sector have shown consistent increase during the last 10 years. The growth in this group is contributed amongst others by pulses, processed and frozen fruits & vegetables and ready to eat products. Some of the steps initiated by APEDA for increasing the exports include implementation of food safety system such as HACCP, market promotion through participation in fairs and exhibitions etc.

Livestock Products

In view of the increased emphasis on human, animal and plant health and safety aspects in the global markets, a number of steps have been initiated to meet quality requirements.  The standards for export of various livestock products including meat and meat products, poultry products, honey and milk products have been notified.  The meat processing plants have been encouraged to implement quality systems such as HACCP, ISO. Problems in export of frozen buffalo meat to the existing markets like UAE, Jordan, Saudi Arabia, Malaysia and Yemen have been resolved. Efforts are on to gain access to markets in Russia, Thailand, CIS countries, East Europe and China. 

Development of the Organic Sector

India exported 86 certified organic products under 15 categories. A total volume of 37,533 MT. was exported (9.5 % of the total produce of 3,96,997 MT.) with a value of Rs. 498 crore. Tea, Coffee, Basmati Rice, Fruits, Dry Fruits, Pulses, Cereals, Honey, Oil Crops, Sesame, Medicinal & Herbal Plants, Processed Food are some of the major commodities exported by India. Major markets for our organic products are the European Union, USA, Australia, Japan Switzerland, and some Asian countries.

APEDA initiated the development of standards to increase the scope of certification under the National Programme for Organic Production (NPOP) for Organic Textiles, Aquaculture and Animal Husbandry. The Animal Husbandry Standards have been formulated and will be notified soon. Standards for textiles and aquaculture are in the process of formulation. APEDA has also accredited four new inspection and certification agencies for organic produce taking the total number to 16.

APEDA took initiative to assist 23 State Governments in the country for developing project proposals for organic farming on a project mode. These projects covering 75,500 ha under organic cultivation envisaging an expenditure of Rs. 361.49 crore are in the process of sanction by the Empowered Committee under the Ministry of Agriculture..

Capacity building measures

To enhance availability of technically competent personnel to ensure food safety right from production level, APEDA has awarded a project to Indira Gandhi National Open University (IGNOU) for development of diploma and PG diploma course on the following areas:

• Awareness Programme in Good Agricultural Practice

• Diploma Programme in Organic Farming

• Post Graduate Diploma Programme in Food Safety and Certification Systems

These programmes have since been developed by IGNOU and are available for the users.

IX. Agri Export Zones (AEZs)

APEDA is the nodal agency of the Government of India for coordinating the implementation of the Agri Export Zones in the country. Currently, there are 60 approved Agri Export Zones in 20 states under various stages of implementation. The 60 AEZs envisaged an investment of Rs. 1717.95 crore and export of Rs. 11821.47 crore over a period of 5 years. Against these projections, these AEZs have so far crystallized an investment of Rs. 1162.37 crore and cumulative exports of Rs. 10721.78 crore upto March 2009. Funding of infrastructure from the ASIDE Scheme of the Department has also been taken up.

X. Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development Authority under the Ministry of Commerce and Industry is a statutory body entrusted with the primary task of promotion of export of marine products from India.

Exports

Export of marine products from India achieved an all time high of Rs.7882.37 crore (provisional upto February 2009) in 2008-09. Details of quantity and value wise exports of marine products during the last two years are given in Table 10.8.

Major Markets

European Union continued to be the largest market group for Indian marine products with a share of 33% followed by Japan, China and USA.

Major items of Exports

Frozen shrimp continued to be the single most important item of export accounting for 44% of the total export earnings. Fish, the 2nd largest export item accounted for a share of above 20% in Rupee earnings. Cephalopods – Cuttlefish and Squid exports increased tremendously.

Table 10.8
Export Performance of Marine Products

Source: Department of Commerce, Government of India
(*) Provisional upto February, 2009

Thrust Areas

To facilitate enhanced export of marine products MPEDA has been giving greater attention to the following areas.

• Development of Tuna fishery by extending financial assistance and technical advice for conversion / construction of Tuna Long Liners and chilled tuna packing facilities and imparting training to crew.

• Promoting diversification to increase the share of culture fishery by cage farming of finfish and organic culture of shrimps.

• Upgradation of fishing harbours and landing centers to improve the quality of marine products landed.

• Assisting setting up of state of the art processing facilities for value added marine products meant for export.

• Ensuring production of quality seafood by setting up sophisticated laboratories in the maritime states.

• Extending linkages to the grass root level by ensuring better extension packages to fishermen / farmers and the workers engaged in various stages of processing of marine products.

• Enhancing the brand equity and promoting co-branding and joint ventures for strengthening marketing strategies abroad.

• Participating in International Seafood Shows, to showcase the strength of Indian marine products industry.

• The proposal to implement a comprehensive programme for promotion of brand equity, prepared by the marketing consultant appointed by MPEDA has been approved by MoCI, Government of India.

• Facilitating supply of healthy and disease free seed and demonstrating culture practices of various species.

• Strengthening R & D activities to develop technology for aquaculture.

Foreign participants on a field visit during the international training on “Strategies for Management of Corynespora Leaf Disease of Hevea Brasiliensis” funded by the ‘Common Fund for Commodities’ (Netherlands) (CFC)

Steps taken to increase production and exports during 2008-09

• A new scheme called Technology Upgradation Scheme for Marine Products (TUSMP) has been introduced to provide financial assistance to exporters for setting up new units, modernization of existing units for value added products.

• Scheme for setting up of flake / tube ice plants and chill storages in identified fishing harbours have been introduced.

• The first ever cultured organic scampi in the world was harvested from the fresh water farms of Kerala and Andhra Pradesh. The culture was taken up with the association of SIPPO.

• Initiated action to identify areas for offshore farming of finfish.

• Intensified demonstrations of culture of Seabass in cages and ponds with the seeds produced by RGCA.

• Steps taken for adoption of code of practices in shrimp farms to address sustainability concerns.

• Continuing assistance for conversion of existing fishing vessels into Tuna Long Liners and providing long line materials to tap otherwise unexploited Tuna resources. Special consideration for Andaman & Nicobar Islands.

(b) Step to improve quality and sustainability of marine products meant for Export

• The National Residue Control Plan (NRCP) to monitor the residue levels of various environmental contaminants in aquaculture was continued more vigorously.

• Hazard Analysis Critical Control Point (HACCP) team continues to assist seafood processing units for preparing HACCP manual and its implementation.

• Accredited MPEDA laboratories at Kochi, Nellore, Bhimavaram and Bhubaneswar continued to monitor farmed shrimp.

• Six new Elisa Laboratories have been made operational at Amalapuram, Kakinada, Bhimavaram, Bapatla, Ongole and Nellore for testing farmed shrimps. Nine more labs are proposed in West Bengal, Orissa, Tamil Nadu, Karnataka, Maharashtra and Gujarat.

• Network for Fish Quality Management and Sustainable Fishing (NETFISH) and National Centre for Sustainable Aquaculture (NaCSA) continued to undertake extension education programmes for quality upgradation, sustainability and eco-friendly farming.

A view of modern Processing Plant

(c) Other developmental/promotional activities

• Enhanced bonding requirement for import of shrimps from India was abolished by the Government of United States w.e.f. 1st April 2009.

• Government of India has brought specified fish & fishery products under VKGUY scheme entitling a total duty credit scrip of 6% on the FOB value of exports.

• Arranged delegation visit to Japan, Russia and South Africa to study the market situation and interacting with importers, officials, etc.

• A specific scheme was approved for promoting the black tiger in the overseas markets.

• A new scheme for financial assistance for the creation of basic facility for chilled fish / chilled tuna export was approved by MoCI.

• Identified Andhra Pradesh and Gujarat for setting up of special Economic Zone exclusively for processing and export of value added items.

• Upgradation and modernization programmes of various fishing harbours/landing centres are progressing.

• 131 Ornamental fish breeding units were financed to boost the export of ornamental fish.

• Rajeev Gandhi Centre for Aquaculture continues its pioneering effort in research and development of various efforts in production of seed and culture thereof.

Organic cultured black tiger shrimp (Penaeus monodon) - first time from India.