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Fortify agri export framework

May 17, 2025

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Financial Express Kochi

ITH THE INDIA-UK free trade agreement (FTA) signed and talks with the European Union (EU) and others in full swing, the current geopolitical climate presents a rare opportunity to boost global trade ties.

- SMITA SIROHI

While much attention has been given to the strategic and economic importance of these agreements, a critical question is how can Indian agriculture and allied sectors truly benefit from them.

India's Green Revolution is globally acknowledged, transforming a food-deficit nation in the 1960s into one with over 50 million tonnes of buffer foodgrain stocks. India is among the top producers of rice, wheat, pulses, fruits, vegetables, spices, cotton, groundnuts, milk, and eggs. But our share in global agri-exports remains modest (around 2.2%). While domestic demand absorbs much of the output, enhancing farmers' incomes over the long term requires stronger global integration.

No matter how cautiously India negotiates to safeguard its agriculture in FTAs, it will need to offer greater market access to partners' agri and livestock products. For farmers to benefit in return, two foundational pillars must be strengthened: Compliance with international food safety and standards; systemic, professionally managed trade promotion. Especially in high-value markets like the EU, food safety regulations are evolving rapidly—extending beyond maximum residue levels to traceability, labelling, packaging, sustainability, and production methods.

Even developing markets are upgrading food standards, driven by public health concerns and rising consumer awareness. As "trade without traceability" becomes untenable, India's agricultural value chains must be future-ready to meet these benchmarks. Moreover, India must be better equipped to respond when food safety norms are applied in ways that restrict market access.

India's ability to gain from FTAs depends not only on negotiations but on how well its domestic ecosystem is prepared. Several structural and institutional hurdles persist.

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