Agriculture Export Policy 2018 is an important initiative of the Government of India aimed at increasing agricultural exports and improving the income of farmers. Agriculture is the backbone of the Indian economy and supports millions of people across the country. Although India is one of the world’s largest producers of agricultural products, its share in global agricultural trade has remained relatively low.

To improve this situation, the Union Cabinet approved the Agriculture Export Policy in 2018. The policy was designed to create new opportunities for farmers, strengthen India’s position in global agricultural markets, and increase exports of agricultural products. It also aims to connect Indian farmers with international value chains and make India a major agricultural exporting nation.

The government also approved the creation of a monitoring framework to ensure proper implementation of the policy and achieve its goals effectively.

What is Agriculture Export Policy 2018?

Agriculture Export Policy 2018 is a comprehensive policy introduced by the Government of India to promote agricultural exports. The policy focuses on increasing the export of farm products, improving infrastructure, encouraging value addition, and making Indian agricultural products competitive in international markets.

The policy seeks to:

Increase agricultural exports significantly.
Improve farmers’ income through better market access.
Strengthen India’s presence in global agricultural trade.
Promote value-added agricultural products.
Encourage exports of traditional and organic products.

The policy envisions transforming India into a global agricultural powerhouse by creating a favorable environment for agricultural exports.

Need for Agriculture Export Policy

India produces a wide variety of agricultural products such as rice, wheat, spices, fruits, vegetables, tea, coffee, dairy products, and marine products. However, many farmers face problems such as low prices, limited market access, and inadequate storage facilities.

The Agriculture Export Policy was introduced to address these issues by:

Expanding access to international markets.
Increasing demand for Indian agricultural products.
Creating better income opportunities for farmers.
Reducing dependence on domestic markets.
Improving export-related infrastructure.

Objectives of Agriculture Export Policy 2018

The policy has several important objectives aimed at strengthening India’s agricultural export sector.

1. Doubling Agricultural Exports

One of the primary goals of the policy was to increase agricultural exports from approximately 30 billion dollars to 60 billion dollars.

2. Diversification of Export Basket

The policy encourages the export of a wider range of agricultural products instead of depending on only a few commodities.

3. Promotion of Value-Added Products

The government seeks to increase exports of processed and value-added agricultural products, which generate higher profits compared to raw products.

4. Focus on Perishable Products

Special attention is given to fruits, vegetables, flowers, dairy products, and other perishable goods.

5. Promotion of Organic and Traditional Products

The policy supports exports of:

Organic products
Indigenous products
Ethnic products
Traditional farm products
Non-traditional agricultural goods

6. Removal of Trade Barriers

The policy aims to establish mechanisms to address market access issues, quality standards, and international trade barriers.

7. Increasing India’s Share in Global Trade

Another important objective is to increase India’s participation in global agricultural value chains and expand its share in world agricultural exports.

Understanding Sanitary and Phytosanitary Measures (SPS)

An important part of agricultural trade is compliance with international safety standards.

What are SPS Measures?

Sanitary and Phytosanitary (SPS) Measures are rules that protect:

Area	Purpose
Food Safety	Protect consumers from harmful food products
Animal Health	Prevent spread of animal diseases
Plant Health	Prevent pests and plant diseases

These measures became important after the establishment of the World Trade Organization (WTO) on 1 January 1995.

Countries are allowed to create safety standards, but these standards must be scientifically justified and should not be used as unfair trade barriers.

For Indian exporters, meeting SPS requirements is essential for entering international markets.

Key Elements of Agriculture Export Policy 2018

The policy is divided into two major categories:

Strategic Components

These are long-term measures designed to create a strong export ecosystem.

Strategic Measures

Policy Reforms

Infrastructure Development

Logistics Support

Export Promotion

State Government Participation

Integrated Export Strategy

Operational Components

These measures focus on day-to-day export promotion activities.

Operational Measures

Cluster-Based Development

Promotion of Value Addition

Branding of Indian Products

Attracting Private Investment

Quality Control Systems

Research and Development

Market Promotion Activities

Cluster-Based Approach

The policy encourages the development of agricultural export clusters.

What is an Export Cluster?

An export cluster is a geographical area where a particular agricultural product is produced in large quantities.

Examples include:

Product	Possible Cluster Region
Tea	Assam
Basmati Rice	Punjab and Haryana
Mango	Uttar Pradesh
Spices	Kerala
Grapes	Maharashtra

Clusters help improve production quality, reduce transportation costs, and simplify export procedures.

Importance of Brand India

The policy emphasizes building a strong international image for Indian agricultural products through the concept of Brand India.

A strong brand helps:

Improve consumer trust.
Increase product demand.
Strengthen India’s reputation.
Create premium market opportunities.

Products such as Indian tea, spices, basmati rice, and organic products can gain higher recognition through effective branding.

Role of the World Trade Organization (WTO)

The World Trade Organization plays an important role in shaping international trade policies.

WTO and Agriculture Export Policy

The Agriculture Export Policy has been designed to remain compatible with WTO rules.

India’s economic growth has changed its eligibility for certain export subsidies. According to WTO regulations, countries crossing specific income levels face restrictions on providing direct export incentives.

As a result, the policy focuses on:

Marketing support
Infrastructure development
Quality improvement
Export clusters
Trade facilitation

These measures are generally accepted under WTO guidelines.

Benefits of Agriculture Export Policy 2018

The policy offers several benefits for farmers, exporters, and the national economy.

1. India as a Reliable Trading Partner

Frequent changes in export policies can affect India’s reputation in global markets.

The Agriculture Export Policy promotes stability and consistency, helping India become a dependable supplier.

2. Increased Foreign Exchange Earnings

Agricultural exports generate valuable foreign currency.

Higher exports help strengthen India’s foreign exchange reserves and improve the country’s balance of payments.

3. Crop Diversification

Farmers are encouraged to cultivate different crops instead of relying on a single crop.

Benefits include:

Reduced risk of crop failure.
Better market opportunities.
Improved soil health.
Increased income potential.

4. Higher Farmer Income

Better access to international markets often leads to better prices for agricultural products.

This can improve the economic condition of farming communities.

5. Growth of Food Processing Industry

As exports increase, demand for processed agricultural products also rises.

This creates opportunities for:

Food processing industries
Packaging industries
Cold storage facilities
Transportation services

6. Employment Generation

Agricultural exports create jobs in:

Farming
Processing
Warehousing
Logistics
Marketing
Export management

Challenges Facing Agriculture Export Policy

Despite its benefits, several challenges affect the successful implementation of the policy.

1. Low International Prices

Global prices of products such as:

Wheat
Sugar
Cooking oil
Dairy products
Meat products

are often lower than Indian prices.

This reduces India’s competitiveness in international markets.

2. Impact of Minimum Support Price (MSP)

The MSP system protects farmers but can increase domestic prices of crops like wheat and rice.

Higher prices sometimes make Indian products less attractive to foreign buyers.

3. Consumer-Centric Policies

The government often allows imports to control food inflation and protect consumers.

This can sometimes affect domestic producers and exporters.

4. Lack of Awareness Among Farmers

Many farmers are not fully aware of:

Global market trends
Export opportunities
Quality standards
Packaging requirements

This limits their participation in export markets.

5. Poor Infrastructure

Infrastructure challenges include:

Infrastructure Problem	Impact
Inadequate Cold Storage	Product Loss
Weak Port Facilities	Export Delays
Poor Logistics	Higher Costs
Limited Warehousing	Quality Issues

6. High Logistics Costs

Transportation and logistics costs in India remain higher compared to many competing countries.

This reduces profit margins for exporters.

Steps Needed for Better Implementation

To achieve the policy’s goals, several improvements are necessary.

Strengthening Infrastructure

The government should invest in:

Modern warehouses
Cold chain systems
Processing facilities
Export terminals
Transportation networks

Reforming Agricultural Markets

Reforms in agricultural marketing can improve efficiency.

Important reforms include:

Greater market freedom.
Better contract farming systems.
Improved agricultural marketing laws.
Easier land leasing regulations.

Easy Access to Finance

Small exporters often face financial difficulties.

Providing:

Low-interest loans
Export credit support
Insurance facilities

can help them expand their operations.

Farmer Training and Awareness

Farmers should receive regular training regarding:

Export standards
Product quality
Packaging
International market demand

Trade Promotion Organizations

The government can establish trade promotion centers in strategic international markets to:

Promote Indian products.
Identify buyers.
Increase market access.
Build long-term trade relationships.

Recent Relevance of Agriculture Export Policy

In recent years, India has emerged as a major exporter of rice, spices, marine products, tea, coffee, fruits, and vegetables. Growing global demand for organic products, processed foods, and specialty agricultural products has created new opportunities for Indian farmers.

Government initiatives such as digital agriculture, agricultural infrastructure development, food processing schemes, and export promotion programs complement the objectives of the Agriculture Export Policy 2018. These efforts can help India strengthen its position in international agricultural trade and improve the livelihoods of millions of farmers.

FAQs on Agriculture Export Policy 2018

1. What is Agriculture Export Policy 2018?

It is a government policy introduced to increase agricultural exports, improve farmer income, and strengthen India’s position in global agricultural markets.

2. When was the Agriculture Export Policy launched?

The policy was approved by the Union Cabinet in 2018.

3. What is the main aim of the policy?

Its main aim is to boost agricultural exports and connect Indian farmers with global value chains.

4. What are export clusters?

Export clusters are regions where specific agricultural products are produced and promoted for exports.

5. Why are SPS measures important?

SPS measures ensure food safety and protect animal and plant health in international trade.

6. How does the policy benefit farmers?

The policy helps farmers access larger markets, receive better prices, and increase their income.

7. What are the major challenges to agricultural exports?

Major challenges include poor infrastructure, high logistics costs, low international prices, and lack of awareness among farmers.

8. How does WTO influence the policy?

The policy follows WTO rules and focuses on infrastructure, quality improvement, and market promotion instead of direct export subsidies.