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Poultry exports in post WTO period

T. SUDHAKAR
APEDA, 8 th Floor ,Chandra Vihar Building
M.J. Road ,Hyderabad 500 001
Email: [email protected]

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In future a significant factor that could affect Indian agriculture is WTO Agreements. Having signed on agreements and initiated various policy measures to comply with the agreements, India has to constantly be on guard to evaluate and foresee the impact and take necessary pro-active measures to negotiate effectively in the subsequent round of negotiations. There is also a potential for increased export of Indian Agri Products under the WTO regime.

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Background:

 GATT, kept Agriculture out of its purview. A separate Agreement on Agriculture (AOA) negotiated and came into operation on 1st January 1995 to address issues relating to trade in agriculture. (The 8th round of talks under GATT (1986-1994), known as the ` Uruguay Round’ led to the birth of WTO on 1st January 1995.

 AoA aimed at establishing a fair and market oriented agricultural trading system through substantial and progressive reductions in agriculture support and production. This resulted in correcting and preventing restrictions/distortions in World Agricultural Markets.

The agreement tries to;

  • Ensure a free and fair flow of agriculture
  • Achieve further liberalization through negotiations
  • Help conduct trade business in a transparent manner

The agreement threw up the following opportunities for India.

Equal market opportunity
  • Enhance access to global markets
  • Comparative and competitive advantages for agricultural commodities.

During the Doha round of negotiation, the Member countries agreed for comprehensive negotiation aimed at improvement in market access, reduction of, with a view to phasing out, all forms of export subsidies and substantial reduction in trade distorting domestic support.

The market access commitment prevents Member countries from imposing any restrictions other than through tariffs. All non-tariff barriers, including quantitative restrictions, were to be replaced by tariffs which in turn were to be progressively reduced by a simple average of 36 per cent over six years in the case of developed countries and 24 per cent over 10 years in case of developing countries. It was also stipulated that such countries would also provide minimum market access opportunities to the extent 3 % of its domestic consumption going up to 5 % at the end of the implementation period.

The perceived threats

1. Foreign exchange shortage?

2. Inflation

3. Sovereignty

4. Control over genetic resources

5. Non-commercial farming (subsistence level production)

6. Impact on allied sector like dairy, poultry and food processing.

7. SPS measures and TBT agreement.

The opportunities

  • Indian Agricultural exports will become more competitive.
  • Exports will increase and India share will move from the present 1 % to 2 % by 2010 in world trade.

Higher Price Realisation

  • Distortions in the market place will come down; this will benefit the end consumers. Specific opportunities to move up value chain in agriculture and allied sectors including food security.

India should

  • Close productivity gap with other countries for example;

Rice (Non Basmati rice) – Vietnam and Thailand.

Maintain the quality and purity in Basmati rice exports.

  • Relook at cultivation/production practices (pre and post harvest management), these package of practices will greatly improve export of Indian fresh fruits and vegetables.
  • Increase private investments

APEDA has already introduced the concept called Agri Export Zone (AEZ) to enhance private sector participation in agri and allied sectors (Year 2001).

  • Creation of Infrastructure

APEDA has put its resources for creation of infrastructure in preserving fresh product and also in handling processed foods.

  • Patenting traditional knowledge base, geographical indications.
  • Removal of commodity restrictions for exports ex. Onion.
  • Organic Produce
  • Develop quality systems and accredition, improving testing infrastructure.
  • Shift from commodity based to resource based planning, Technical Mission in case of Soya, Maize, Millets etc.

Poultry - Agri Business

Despite being the cheapest egg producer in the world, India is unable to export much;

  • The cost of the production is around 3 cents, whereas the cheapest egg in EU is at 5 cents and above.
  • The EU countries and USA provides huge subsidies.
  • We need to provide necessary logistics and infrastructural support.
  • Sanitary and phyto sanitary conditions,
  • Supply of feed at reduced price
  • Policy changes to promote consumption of processed poultry meat
  • Conversion of oil cake into feed within the country etc.

Poultry exports have to given a big push. The Poultry sector should be treated

  • As an industry to facilitate further integration in the poultry sector.
  • Provide transport incentive both for eggs and processed poultry meat.
  • Exemption from Sales tax
  • Restricted usage and ban on antibiotics and pesticides
  • Disease surveillance
  • Establishing of testing laboratories.
  • Step up size of operation to achieve an economy of scale.
  • Maintain genetic progress to produce world class breeds
  • Explore potential markets in Russia, China, South East Asia and niche markets in Japan, Hong Kong, European Union etc.
  • Fix specific targets for exports and work on export strategy to achieve the targets.

APEDA has in recent years

  • Promoted eggs grading and packing lines
  • Testing infrastructure for feed, egg powder, meat etc. (RMP).
  • Provided transport subsidy on hatching eggs, table eggs.
  • A proposal for creation of Agri Export Zone (AEZ) for poultry eggs in East Godavari District.

Government should

  • Domestic issues like increased per capita consumption of eggs.
  • Incentives to feed processing.
  • Power concessions to poultry sector
  • Develop an alternative to vaccine and antibiotics,

and, APEDA has participated in

  • Codex Standards
  • National Programme for Organic Production (NPOP)
  • Arranged Buyer/Seller Meets
  • Plant Registration
  • Singed MoU’s on import of processed meat into various markets.
  • Accreditation of Laboratories

 

 

Source : IPSACON-2005