HARYANA SCHOOL OF

BUSINESS

Presented by:Vijay Siwach

14101027
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AGRI EXPORT ZONE

IN
INDIA

Content
Agri

Exports Zone.
Indias Agri Exports: Potential
Agri Exports: What Constrains Us?
AEZs in Various States
Gap Between Farmers and Exporters
Broken Agri Chain in India
Measures envisaged to Promote exports from
AEZ
Financing Needs in AEZ
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AGRO EXPORT ZONE

An

Agri Export Zone or AEZ is a specific

geographic
region
in
a country
demarcated for setting up agri based
processing industries, mainly for export.

Indias Agri Exports: Potential

India

has one tenth of worlds arable land

(size is more than Chinas).
It has rich and diverse agro climatic zones
with more than 50 major crops.
One fifth of worlds irrigated land.
2nd largest producer of fruits and vegetables.
3rd largest producer of agri commodities
(largest in food grains).

Agri Exports: What Constrains

Us?
Low

productivity due to inappropriate cultivation

practices and improper harvest methods. This
affects international competitiveness.
Inadequate infrastructure.
Too many middlemen in the procurement chain.
Lack of contract farming practices.
Quality problems due to poor post-harvest
management. Inadequacy of domestic quality
standards.
No clear focus on exports due to vast domestic
market with low quality standards.
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AEZs in Various
States
State

No. of AEZ

Agri Products

Maharashtra

Grape, wine, mango,

flowers, onions,
pomegranate, banana
& orange.

Punjab

Vegetables, potatoes,
Basmati rice.

West Bengal

Pineapple, lychee,
potatoes, mango,
vegetables and tea.

Karnataka

Gherkins, rose onion,

flowers, vanilla.

Uttar Pradesh

Potatoes, mangoes,
vegetables, Basmati
rice.

AEZs in India
State

No. of AEZ

Agri Products

Uttaranchal

Lychee, flowers,
Basmati rice.

AP

Mango pulp,
vegetables, mango,
gherkins, chilli

MP

Potatoes, wheat, lentil,

orange, seed.

Other States

22

Coriander, cumin,
Ginger, medicinal plant
etc.

Total

60

Gap Between Farmers and Exporters

Inputs
Infrastructure
Farmers

Storage

Exporters

Transportation
Technology
Finance
Quality Assurance
Training
9

Broken Agri Chain in India

Production

Supply Chain

Processing

Marketing

Poor extension High wastage No assured

Poor infrastructure
Supply of inputs Lack of storage supply of inputs Lack of grading
Low productivity Poor transportn. Lack of
No market
Outdated farming Many
processing facilitylinkages
practices
intermediaries Technology
Broken chain increases credit risk and limits credit flow
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What AEZ Offers to Improve Value

Chain?
Training

of farmers and strengthening of

extension services.
Soil testing laboratories.
Supply of quality seeds/plants.
Setting up pack houses with sorting/ grading
facilities.
Greenhouses
Pre-cooling units, cold storage.
Refrigerated vans
Irradiation units/ vapour and heat treatment
units
Perishable cargo handling facilities at airports
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Measures envisaged to Promote

exports from AEZ

Promote

Financia
l
Assistan
ce

Fiscal
Incentiv
es
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Financial Assistance

Both

Central as well as State Government and their agencies

are providing a variety of financial assistance to various agri
export related activities.

These

extend from providing financial assistance for Training

and Extension, R&D, Quality Upgradation , Infrastructure
and Marketing etc.

All

these facilities would have to be dovetailed and extended

to promote agri exports from the proposed Zones in a
coordinated manner.

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Fiscal Incentives
The

benefits under Export Promotion Capital

Goods Scheme, which were available only to
direct exporters, have now been extended to
service exporters in the AEZ..

Similarly,

input-output norms can also be fixed

for sourcing other inputs, like fertilizer, pesticides
etc. duty free for cultivation purpose

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Financing Needs in AEZ

Farmers

need finance for purchase of quality

seeds,
fertilizers,
pesticides,
harvesting
equipment etc.

Service

providers like cold storage, pack

house, refrigerated vans, testing facilities
need finance to create infrastructure.

Processors

need finance to set up processing

facilities and working capital.

Exporters

will need trade finance for exports.

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Thank you!
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