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Agriculture Export in India

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This Study encases the researcher’s efforts to deeply understand the aspects of Indian agriculture and also ascertain the various challenges and solutions that can be offered against the current problem of the limited scope of agricultural exports and opportunities in the country. The study has used on secondary research and data has been collated from within the various literary sources that have been made available for the subjective analysis of the thesis. While the researcher has paid satisfactory attention to the literary sources various national and disclosed data using websites has also be incorporated to add to the value and lend authenticity to the paper. While it may have been useful to include more sources, the access to facts and figures is not granted on every national data file thereby limiting the scope of real time situations and numbers. It is also recommended to reach out to the ambition and aspiration of the agricultural masses to understand the true scope and reality of the situation that persists in a country that is primarily agricultural and is progressing towards sustainable agriculture. For a country where the base of income begins with two primary crop seasons, the idle time in cropping and harvesting is very less and not worth wastage. Yet in a country that heavily relies on agriculture for its domestic and international financial fluctuations, the scope of agriculture that has been defined so far is not explored fully. This paper aims to provide insight to the actual situations and the problems that are faced by the agricultural dominant areas and the various factors the limit the scope of agriculture. It also summarizes the various governmental and non-governmental efforts that have been in the direction.

Chapter 1: Introduction

1.1 Introduction

India is a country in which, more than one third of the total population is dependent on the agriculture sector directly or indirectly. Agriculture continues to be one of the most Indian aspects of Indian economy. There are various factors which play an important role in the development of the agriculture sector. India has tried to maintain its base with exporting various agricultural products which have in turned proven beneficial for the economy. However there has been an occurrence of several hindrances that have worked towards the negligence of Indian agriculture. In this particular research, the researcher focuses on the various challenges in improving agricultural exports of India.

1.2 Background of the Research

Agriculture which is also known as the backbone of the Indian economy is responsible for about 14% of the GDP of India (Gakhar and Kumar, 2015). There are various factors which play an important role in determining the amount of agricultural products that are exported out from India. There are mainly two types of problems which create hindrance in the export of agricultural products. Sen and Abhijit (2010) commented that they are internal and external. The lack of attention of the Indian government on the agriculture sector has resulted in furthering its degradation. The different trade policies and restrictions that have been put in place have made it very difficult for the producers to export their products. The government has mainly focused on the internal market and consumers thus creating problems in the path of export of the agricultural products. In the present scenario of the export agriculture of India has faced many challenges. In the modern time, agricultural export business plays an important role of declining of the Indian economy. As per records, India is world’s largest procedure of agricultural product in the world. India has very poor rural roads affecting timely supply of inputs and timely transfer of outputs from Indian farms. Irrigation systems are inadequate, leading to crop failures in some parts of the country because of lack of water. In other areas regional floods, poor seed quality and inefficient farming practices, lack of cold storage and harvest spoilage cause over 30% of farmer's produce going to waste, lack of organised retail and competing buyers thereby limiting Indian farmer's ability to sell the surplus and commercial crops(Gakhar and Kumar, 2015).

The process of manufacturing exports became a bigger priority for the government and the focus shifted from the agricultural sector. According to Chand et al. (2011), external problems included the presence of huge competition from the developed countries which lead to the marginalisation of the agricultural products of India in the global market. The terms of trading are much more relaxed in the developed countries and they have far better access to the global market. Due to the huge inhibitions among the Indian authorities in exporting agricultural products, the Indian exporters have not been able to regulate the prices of their exported products which in turn have resulted in a loss in the competitive global market.

1.3 Rationale of the Research

What is the issue?

The study has raised the issue of the problems that are faced by India in exporting its agricultural products in the global market. Seiber and Kleinschmidt (2011) commented that despite the presence of a huge agricultural production base India has not been able to consolidate its position in the global market of agricultural products. While there are many factors that are associated with this issue, the national and private agencies ad their varied efforts are still struggling with the issue and have been trying to contemplate ways to increase the exports and manage the situation.

Why is it an issue?

This is an issue as around one third of the whole population of India is related to agricultural sector directly or indirectly. The presence of problems in agricultural export results in affecting most of the population in turn affecting the needs of the individuals associated to this sector. Being a country that is economically and sustainably dependent upon agriculture and the various factors that are associated with it, it has become a growing problem that demands immediate attention.

Why is it an issue now?

India is a country that is still developing in the modern world. Rajeev (2011) stated that the presence of problems in export of agricultural products results in harming the agenda of the country to consolidate its position in the world economy. For India to gain a strategic position in the global economy is also relative to the international position that it would demand to be involved in strategic positioning and decision making of the world.

What does the research shed light on?

The research sheds light on the different factors which have led to the creation of problems in agricultural export for India. The research also analyses the difference in the policies and procedures of the developed countries and India that have resulted in harming the agricultural export of India.

1.4 Research Aim

The aim of this research is to understand the various problems and challenges that are present which create a hindrance in the rise in the export of agricultural products of India. The research also aims to find the solution to this problem which would help provide benefits to the agricultural exporters.

1.5 Research Objective

The objectives of this particular research study are:

  • To identify the challenges in Indian agriculture
  • To understand the rules of agricultural product export in India
  • To assess the challenges in improving agricultural export in India
  • To recommend different ways in which the agricultural export of India can be improved

1.6Research Questions

The research questions for this particular research study are:

  • What are the challenges in Indian agriculture?
  • Which are the rules that are present in India which are relevant to agricultural export?
  • What are the challenges present in improving the agriculture export of India?
  • How can the agricultural export of India be improved?

1.7 Research Methodology

http://www.projectguru.in/publications/wp-content/uploads/2013/11/fig14.jpg Figure 1: Research Onion

(Source: Saunders et al. 2011, p.65)

1.8 Data Sources and Data Analysis

In this particular study, the researcher has selected secondary data collection technique in order to collect the data that is relevant. Bernard (2011) commented that the data has been collected from various books, journals and websites which are related the topic. The researcher has analysed the data that was collected through the quantitative method which has helped the researcher to analyse the empirical data obtained in a proper manner.

There has also been an application of a questionnaire that was circulated between 30 managers at Agriculture and Agribusiness firms throughout the country to ensure maximum participation. The survey questionnaires that form the basis of primary data were sent over emails and telephonic calls were made. It is the consolidation of this data that constitutes the interpersonal relations and Qualitative research that has been conducted. The questions have been drafted keeping in mind the present issues that Agriculture in India is facing including the recent issues of Farmer suicides and marginalisation of famers.

1.9 Structure of the Dissertation

Figure 2: Structure of the Dissertation

(Source: Created by Author)

Crowther and Lancaster (2012) commented that Introduction, as the first chapter helps in identifying the issues and understanding the whole background of the topic. It also discusses the research aim and the research questions.

Literature Review is the2nd chapter the previous work has been analysed by the researcher and the different gaps that are present in the previous and existing research works have been identified.

The chapter of Methodology, being the third chapter deals with the various designs, philosophies and approach that have been taken in order to conduct the research study.

The data analysis chapter deals with the analysis of the data that has been obtained in the previous chapter. Roger (2011) stated that the data that is obtained is analysed with the help of different methods. These analysed finding are then with the objectives outlined in the study and the literature review.

The final step involves drawing of a conclusion from the data that has been analysed in the data analysis chapter.

1.10 Summary

The first chapter of the dissertation helps in drawing the different aspects of the topic. It also helped to develop the research aim by doing the concerned background study. The research aims to find the different problems that are faced by the agricultural exporters of India. This chapter helps to pave a path for the proper conduction of the study.

Chapter 2: Literature Review

2.1 Introduction

In this chapter, the researcher has analysed the different research work that has been done by varied number of researchers in the past. The researcher has conducted an in depth study of the literature present of the various problems that are face by the Indian agricultural sector in the present day. A concrete gap as has been extracted from the earlier writings activated in process. This has been done for understanding the issue more accurately. The rules for exporting the agricultural products produced in India have also been analysed. Finally the researcher has assessed the challenges that are present in improving the agricultural export of India.

2.2 Previous Researches

In the previous research namely, Indian Agriculture –An Introduction by M.M. Pandey the main focus of the researcher was on the rules implemented by the Indian government in relation to export of agricultural commodities of India. In that study the researcher told that the government should take into consideration its huge population and its low productivity of the country. A country in second position in population measure, having over 120 crores inhabitants and now on the verge of becoming the number one should first try to feed its people because of the high percentage of the population stands under international poverty line. It should try to meet its current account obligation by exporting service products rather than food (Pandey, 2013).

On the other hand, in another research paper namely Agricultural Situation in India, by D.K.Gaur, S. K. Kaushal, Uma Rani and Y. Tailor, it has been identified that the point of the price and quality of the agricultural products has been raised. But the most concentration in this research has been made on the contribution of different government institutions to help the agriculture sector and limitation on their work abilities. Contribution of insurance sector is also detailed there in (Gaur et al. 2015).

Previous researches have statistically analysed that the Crop per unit area of all the crops has steadily increased in since the inception of commercial agriculture in 1950 (World Health Organization, 2015). Various factors that may attribute to this success are the various five year plans that have been implemented in all the agricultural zones of the country. Many researches that have been conducted earlier also depict the improvements made in the streams of irrigation and also application of modern agricultural practices. Such improvisation in technology has subsequently increased the application of modern agricultural practices thereby further increasing the scope of agriculture in the country. Starting with the Green Revolution in India the country has also been able to divert a majority of national policies on the enhancements to be made in the stream of agriculture. However, despite the efforts, the average agricultural yield in India is only about 30 % to 50 % of the agricultural yield of the largest agricultural producers in the World (World Health Organization, 2015). The primary contributors to agriculture in India would be the states of MP, Andhra Pradesh, Bihar, West Bengal, Gujarat and Maharashtra. Punjab and Haryana are also majorly agriculture dominant including Uttar Pradesh.

2.3 Evaluating Current growth rate of Agricultural Export in India:

India, being an agriculture based country the contribution of this sector in the GDP of the country cannot be neglected. Nearly, 60 per cent of the rural households make their living from this sector. An estimate report from Central Statistical Office of India shows thatin 2014-15 fiscal the contribution of agricultural sector and its allies (including agriculture, livestock, forestry and fishery) totalled at 16.1 per cent of the Gross Value Added at 2011-12 fiscal year (FY) prices. During the first quarter (April-June) of FY 2016 the contribution of the sector grew 1.9 per cent year-on-year and contributed 14.2 percent of GVA (Reddy, 2015).

With an annual rainfall of almost 1,028 Millimetres annually the total annual precipitation is almost 4000 billion cubic metres. In fact the total water resources that can be applied to agriculture are abundant with a total of 1123 cubic billion square metres of area. Also, 546, 820 Square Kilometres of Land area or about 39 % of the cultivated area has steady irrigation. In 2010 India had the world’s 6thbiggest Fisheries sector. With the help of inland resources and surrounding oceans, employment is provided to almost six million people (Reddy, 2015). It remains a perplexing situation to still not be able to define and regularise the increase in the Agricultural and allied exports despite the country having such lucrative resources and entities to bank upon.

India is ranked first for producing, consuming and exporting spices and spice-centric products. In measure of total outputs from farm and agricultural sector, India is third in the world. Presently in India’s total export basket, exports relating to agriculture sector figure at 10 per cent making it the number seven country in the world, while in early 90s it stood at 20 per cent. Thus, 1990s onwards the export of specifically this sector is down streaming giving the service sector the Numero Uno positioning exports of the country. In 2003 the net export of agriculture sector in money term was only 5 billion whereas in 2013 it was 39 billion which surpassed Australia’s agricultural export. The Indian government’s contributions in improving both the production and exports have excelled the growth in shipments, which are importantly required for the developing countries (Sharma, Müller and Roy, 2015).

The total share of the food products and agricultural commodities in the year 2012 – 2013 was almost 10.66%. It increased steadily and reached 20% in 1990s where as in later part of 2010 and onwards it declined to just 8% (Rao, Babu, Chandra, and Chary, 2015). It can be carefully evaluated that the share of the exports from the farm lands was reducing considerably and it is only the recent years that some change has been noticed. However, the change is marginal and not a gradient as steep as the decline. And one of the major reasons that were able to contribute to this decline was not the decline in agricultural produce or farm area but the increase in the robust performance of the other sectors like private sector. Key factors and their analysis would yield a better picture. To begin with 1) India’s share in the global farm and food exports is approximated to be around 2.07% that makes the country a major exporter of the agricultural products. 2) Ranked at number 10 in agricultural and food exports, the largest sector of the export is Basmati Rice. 3) Other major commodities that are exported are tea, sugar, oilseeds, and spices, Beef, Guar Gum and Tobacco. 4) The share of processed foods has also increased considerably. 5) There has been a noted upward trend in the Agricultural Exports in the country that can be attributed to Low transaction times, An increase of overseas demand, emergence of the food processing industry, and surplus production of wheat and Rice (Rao, Babu, Chandra, and Chary, 2015).

While it may be surprising but a major fact of the country’s economy stays the fact that the country does heavily rely on agricultural imports as well. Sugar, Edible Oil and Onions are imported at regular intervals and Edible oil amongst the list is the biggest commodity that is imported.

India has always been played a major role in exporting rice, cotton, sugar and beef in the world market but in recent days its contributions of soybean meal, guar gum, corn and wheat have also increased with a diverse range of other products. The rice export has a growth of 10 per cent in comparison to the year before and the cotton is up by 2 per cent. The beef industry’s growth in export is 18 per cent and wheat has the most growth of 75 per cent. In 2009 total export of aforesaid products was valued at $14.8 but in 2013 it was $39.3 offering an increase of $24.5. Indian’s export growth has been the highest of any country over the past decade with an annual rate of more than 21 per cent. In contrast another developing country, Brazil had only 15 percent growth, while Chinahas only 12 per cent (Rao, Babu, Chandra, and Chary, 2015).

2.4 Challenges in Indian Agriculture

Agriculture is classified to be the primary occupation of more than one third of the Indian population. According to Chand et al. (2011), the presence of this huge agro industry in India has resulted in raising the GDP of the country significantly. However despite the presence of many individuals in this sector, there have been many problems that have continued to plague them. All the farmers in India have their own share of land which they irrigate. However these lands are fragmented into different parts which create many problems for them. The presence of a fragment land creates hindrances for the farmer as it is not possible to employ various modern techniques in agriculture such as farm machinery in a small land.

Use of expensive machinery in a fragmented land may lead to a loss for the farmer as the amount of products generated may not fulfil the money. Sen and Abhijit (2010) stated that the presence of fragmented land also restricts the farmers to pay proper and equal attention to all the parts of the land which in turn results in the creation of various irrigational problems. The farmers become restricted to use of traditional methods which in turn limits the productivity of the agricultural products.

The absence in proper irrigational techniques also causes huge problems in the agricultural sector. Most of the farmers in India rely on the season of monsoon to get their crops proper water. These farmers become totally dependent on the monsoons. Dev et al. (2012) commented that the absence of proper water management techniques result in creating problems for the farmers which in turn reduces both the quantity and the quality of the crops. There needs to be a proper facility for irrigation if the country has to increase the agricultural output.

The presence of various problems in the quality of seeds also results in decreasing the agricultural output for the farmers. Vaidyanathan (2011) stated that the introduction of High Yielding Variety of seeds in the market have solved the problem to an extent, but the presence of cheaters who cheat in the quality of seeds have resulted in the introduction of low quality seeds in the market. The agricultural sector has also faced various sustainability problems in the present world. The technologies that are used in the sector have become obsolete and there is a total lack of understanding among the farmers. There is a presence of unplanned water usage which creates a misuse of irrigational facilities. The introduction of middlemen in the agricultural business has also created a heavy dent on the earnings of the farmers which in turn lower their capability to grow good export quality products.

There are some major problems that the Indian Agricultural scenario faces. Firstly, it is the population pressure that has lent an immense impact to the performance of agriculture. With a population of over 1 Billion to cater to the internal and domestic needs of the country’s population itself poses to be a problem. Not only is the demand for the food and consumables increased, but the demand for the land holdings and space is also ever increasing. This has led to large portions of the agricultural land being used for construction.

Secondly, the issue with small and fragmented land holdings is also another major problem. There is tremendous pressure to divide land and distribute is equally among the various contenders. Many times a single farm has to be divided repeatedly. The small farm land size makes it difficult for the person to take up farming on a bigger scale and the produce remains limited. This has also given rise to social tensions, family feuds and violence (Ford and Giles, 2015).

Thirdly, irrigation and inadequate portions also cater to the growing needs but are insufficient as far as the entire usage is concerned. Almost half of the cultivated area has to be left to the mercy of the rainy season in order to cater to the other half that is manually irrigated. This leaves crops at the hands of natural climatic conditions that would vary from year to year subsequently, impacting the produce that varies annually (Moïsé, Delpeuch, Sorescu, Bottini and Foch, 2013).

Soils that are depleted already are also a major cause of concern. These soils have been used over decades and have been slowly depleted of their natural resources, decreasing the crop yield and depletion of soil fertility. And the growing demand of cultivation does not give the farmer enough time to add the nutrients and make it fertile again (Moïsé, Delpeuch, Sorescu, Bottini and Foch, 2013).

Lastly, it is the storage of the food grains that is another problem. Almost ten percent of the total harvest is wasted every year due to the inappropriate storage of the harvested grains. This is colossal damage and can be avoided if the right measures of technologically sound storage are taken up.

2.5 Rules for agricultural export in India

There has been an increase in the production of the food grains over the last few years and some of the efforts that were made were both governmental and non-governmental. Each initiative that is taken up needs to comply with a certain set of rules that have to be adhered to in producing and exporting of the surplus. While the increase of the crops was due to the use of Quality seeds, higher dosage of enhancements and better irrigation, EXIM policies and export leverages developed the confidence of the farmers to seek exporting options (Moïsé, Delpeuch, Sorescu, Bottini and Foch, 2013).

Recent reports show that India has been able to emerge as the second largest exporter of fruits and vegetables whereas in the export of cashews and spices, it takes up the number 1 position (Singh, 2013).

A major initiative that was able to contribute to these figures was the development of a strong and accurate weather monitoring and prediction system that allowed the agriculturists to identify the right trends according to the weather. With the cultivations segregated into two major seasons, rainfall occurs mainly in summers. This initiative by the Indian Meteorological departments has been able to increase the surplus and exports. Another added advantage of the weather forecasting has been the valuable inputs that are given to the farmers in terms of meteorological services. With fifteen diverse agro-climatic zones, to bring the country in one agricultural pattern is not possible (Ford and Giles, 2015).

Every country has their own rule on the exporting of goods and products from their country in the global market. The various concern which a country faces while imposing restrictions in the export of agricultural products. The concern for internal food security and the fear of rising domestic food prices make a country make several restrictions to the export of agricultural products. The general agreement for trade and tariffs (GATT) and the World Trade Organisation (WTO) have presented proper guidelines concerning the rules of export in the world economy. The trade of agricultural products across the globe has increased in a large way after the advent of globalisation due to the various technological and macroeconomic changes that have taken place in the world. After the Uruguay round agreement there was various problems which arise as most of the traders were from them developing countries. Vyas et al. (2010) stated that thus there had to be a change in the tariffs of the products in the global market. The Indian government has laid down some stringent rules which have to be followed in order to facilitate the proper export of the agricultural goods from the country. All the agricultural products that are to be exported out from India have to undergo a test to ensure the quality of the product.

This check is done before the shipment is loaded onto the transportation vehicle. This has been made mandatory under the Export (Quality Control and Inspection) Act 1963. All the companies who are exporting their products have to be registered with the registrar of companies. Easter et al. (2012) stated that this would help the authorities to regulate the dealings of the companies and monitor the export products. According to Pursell, G. and Gulati A. (2013) the companies which have the ISI Certification Mark or Agmark in their company logo do not have to be inspected by any agency. All the goods that are to be exported should be packed, labelled and marked in a proper manner before being put into crates for export. In addition to that, all the companies must keep proper database of the products that are being exported and the prices should be approved by the Pricing Regulatory Authority of India (PRAI).

2.6 Policies by government to support the agricultural export sector:

Current Indian government has told that it is trying to increase export of agricultural commodities. Especially wheat, rice, vegetables meat and marine products and it has made the country second highest exporter of this sector. While addressing the problem the main point of concern was the declining figure of the sector. Although introduction of EXIM policy was done to boost up the overall export quantity of India, nowadays several policies are also being introduced specially concerning the agricultural sector.

EXIM policy:

This policy indicates the export and import policy of India. It encompasses all the products of India relating to export and import. Several policies are there regarding the agriculture sector (Alam, D. 2011). The government always try to encourage the exporters by giving incentives, lowering the rate of duties. The government always showed its stance supporting a long-term goal in its policy implementation. But some restrictions are there in its policy on the export of edible oils and pulses even though it causes a supply-demand mismatch in the world market. India, being agriculture based country; fall in the quantity of export of its agricultural commodities is a major setback to this image. Identifying this, the current government has proposed a 5 percent export incentive to this sector. Commerce and industry minister has told while proposing that the incentive is under Open General Licence and there’s nothing barring it. The minister has claimed that the government is seeking all possibilities to benefit the sector. However he has raised his concern about the percentage of wastage of the agricultural products. Nearly 35 per cents of total production get waste due to improper storage facility. The government is also seeking foreign direct investments to build more cold storages and to invest on more advanced technology. The government is also measuring all of the steps to increase the revenues for the farmers. The concerned minister has told that it has an ample of agricultural products to export which can gain them valuable foreign currency in order to meet country’s current account deficit. The top exporting countries to India are USA, Indonesia, Vietnam, UAE and China. The minister informed that the Agricultural Food Products Export Development Authority and Marine Products Export Development Authority are planning to implement some schemes in favour of exports of agriculture sector (Ford and Giles, 2015).

2.7 Challenges in improving agricultural export in India

There has been an increase in the competition in the global market after the advent of globalisation and liberalisation. Thus India has changed its policies to ensure that the Indian agricultural sector stays relevant in the global macroeconomic world. Rajeev (2011) stated that India is a global producer of agricultural products but most of it is used for domestic purposes. All the products are mainly used by the citizens of India and are not used for economic exports. The authorities of India have started to inculcate various techniques that have helped to develop the agricultural exports in the country. India is till at sixth position in the export of agricultural products as per the ratings given by WTO. India has made several restrictions in the export of the agricultural products. The authorities have made several policies such as export bans and minimum export prices.

India restricted the exportation of agricultural products such as Basmati rice and pulses after the global recession took place all over the world.Seiber and Kleinschmidt (2011) stated that this was done to ensure that there are no problems in the domestic food markets of India. The Indian government has also levied several unnecessary taxes on the exporters of agricultural products which have stopped them to be increasingly active in the export sector. These taxes have led to an increase in the final price of the product which is being sold in the competitive market. Thus these goods which are being exported from India cannot compete with the cutting edge market prices of the products that are being exported by the other developed countries.

There are various gaps that are present in the existing research works on the topic. The existing work sheds light on the different rules and procedures that are present in the export system of India. The researcher also found literature on the topic of the problems that are plaguing the Indian agricultural sector such as low irrigational facilities and improper seed usage. The existing literatures also provide a view of the different challenges that have been faced by the exporters in India due to the levitation of various unnecessary taxes. However there is a gap in the existing literature. The present research work will fulfil the gap by assessing in detail the various rules and regulations of India which have resulted in creating a hindrance for the increase in agricultural export. The research will also shed light on the different ways in which these challenges can be countered by the exporters in order to increase the exportation and in turn helping in the development of the Indian economy.

2.8 Conceptual Framework

Figure 3: Conceptual Framework

(Source: Created By Author)

2.9 Identifying the gap between current research and previous research:

While conducting the research a gap between previous researches and this research has appeared. In the previous works the researches have emphasized the external factors affecting the export of agriculture sector whereas in this research the main points which are given importance arise domestically. It has been viewed that in India farming lands get fragmented due to ownership of these lands and modern technology like firm machinery cannot be used in small sized lands and it will increase the overall expenses for the farmers. There is also problems relating to irrigation has been raised by the researcher in this project. It has been told that how this fragmentation can lead the farmers to use traditional process of irrigation. The low quality of seeds and the problems relating to fertilizers are also discussed in this research.

2.10 Summary

The researcher in this chapter has assessed the different journals and books related to this topic and the research conducted by the previous researchers. The work of the previous researchers have been analysed and the various gaps that are present in the researches have been identified. These gaps have been evaluated and the researcher has analysed the present work on the basis of the work already conducted.

Chapter3: Research Methodology


In this particular study, some research process have been opted or followed by the researcher. Certain primary and secondary data is used in this methodology to understand about the subject of the study. Research onion is the strategy to understand the process of the survey done by the researcher in this study, how to uses the data and describe the essentiality of the data. In this research, what are strategies are uses and how they are important is also discuss. Certain philosophical approaches, data collection method and technique are also discussed in this study to justify approach of the study (Crowther and Lancaster, 2012).

3.1. Research Onion


Figure 4: Research Onion

(Source Saunders et al. 2010, P.52)

Denzin and Lincoln (2011) stated that the research onion is the perfect guide for researchers to choose appropriate research methodology. Using this diagram, the researcher can get an idea of how the technique and procedure should be used in this study. Every layer of the onion structure shows the degree effectiveness of the collection of the data uses in this study and describes every detail of the study. The research onion would give the idea how the research methodology will be designed. Research onion diagram will help the procedure, technique, time horizon, depth of the discussion on the subject, choices of the data, different strategies, and approaches behind every method of the research and philosophies strategies of the particular study. This diagram will discuss possible stages of research and how much they are important in this research. By this onion structure, research can understand the depth of the every research strategies (Saunders et al. 2010).

3.2. Research Philosophy

Dul and Hak (2012) Opined that research philosophy is a belief about the way in which data about a phenomenon is be put together. The analysis and justification are used. Research philosophy can be defined as a development of the research background, research knowledge and its nature. This assumption will be structured by the research philosophy that provides a justification for which a research can be undertaken. Research philosophies will depend upon goals of the research also with the best way, which will be used for achieving goals. Thus, understanding of research philosophy will help to describe all inherent assumptions in this research procedure with the explanation how this philosophy fits this methodology, which is going to be used.

3.2.1. Justification of choosing positivism philosophy

Positivism is a concept is associated with the idea of the objectivism .The study point of the positivism of the research philosophy is to identify the regularities and the pattern of the social world with scientific procedure. This is the best way to understand about the philosophical strategies. This concept is about valid source of idea and basic concept. Positivism is based on valid source of knowledge. Positivism presumes that all kind of procedures will be received (Cameron, 2011).

3.3. Research Approach

There are two types of research approaches in this study. They are deductive approach and inductive approach. Deductive approach stated that it would help to develop the hypotheses based on previously existing theory. Deductive research approach helps the researcher of the study to reject and confirm the different types of information and data as gathered for resolving issue. Inductive approach is a procedure, which is used for qualitative research of the study. The particular data and initial framework, which is collected for the research, are not required in this type of theory.

Figure 5: Different Approaches

(Source: Freshwater, 2010, p.137)

In this study, the researcher uses deductive method of research that is applied for research methodology.

3.3.1. Justification for choosing the deductive approach

The reason behind of choosing the deductive approach is that it is directly compatible with the descriptive design we choose for conduct this research. This approach is suitable for the research as it allows the researcher to use existing studies on the research topic before conducting the research. Furthermore, the deductive approach is a more systematic way to approach a research by narrowing down from broad to smaller details that are more important. The researcher wishes to conduct relevant and appropriate research prior to arriving at logical conclusions, for which following a deductive approach will be most suitable (Ellis and Levy, 2010).

3.4. Research Strategies

Research strategies are a procedure by which the researcher completed their research work with help of certain strategies. There are different types of research strategies opted by the researcher: Descriptive Strategies- In this type of strategies descriptive research are there about surveys and fact about certain subject. The main purpose of this type of strategies is to description about the present state affairs of the subject. Applied Strategies- In this type of strategies the researcher aim to find the solution for the immediate problems arising in a business or society. This strategy helps the organisation to overcome the problems.

Analytical Strategies- In this type of strategies the researcher will work on the available data and information about the survey. Quantitative Strategies- In this type of strategies the researcher is calculating the in the basis of quantitative data and source (Freshwater, 2010).

Figure 6: Different types of Strategies

(Source: Freshwater, 2010, p.134)

3.4.1. Justification for choosing description strategies

Using this strategy, the researcher will be able to collect information and data on past research as well as present times. In these type of strategy, the researcher works on items like frequency, preference and statistical data. Harrison and Reilly (2011) suggested that descriptive research strategies can be used for future by identifying hypothetical constant and variables. The descriptive research strategies can be treated as indirect test theory description. In this strategy, the present data is required so research can get the present research outlook.

3.5. Data collection method

Data collection method is a procedure of collecting data and analyses the data properly. There are two types of data collecting methods; primary data collection method and secondary data collection method.

Primary Data Collection Method- In this type of method the collection method is based on random sampling and structure data collection instrument. It produces data, which is easy to summarize, compare and calculated. The different types of collection of primary data are research, survey etc.

Secondary Data Collection Method- Harrison and Reilly (2011) comment thatin this type of method the collection method is based on qualitative method. The various ways to collect secondary data are websites, books and observation of data in various ways. In this assessment, the secondary data collection method is follow.

Figure 7: Different types of data collecting method

(Source: Cameron, 2011, p.147.)

3.6. Data analysis technique

Data analysis technique is one of the most important parts in the research program. Analysis of data is a process of inspecting, cleaning, transforming and modelling data with goal of discovering useful information, suggesting, conclusion and supporting decision-making. Data analysis is a process for obtaining raw data and converting it into information, which is useful for decision-making by the users. Data analysis is a process of systematically applying statistical or logical technique to describe and illustrates, condense, recap, and evaluate data.

3.7. Ethical consideration

In this part of study, the researcher will follow certain procedure to finish the job in ethical manner. Firstly, the researcher will take the permission from the appropriate authority before starting the assessment. At the time of survey or collecting data, the researcher would follow the reliability and variability of the data, which is collected at the time of research. The researcher will follow the valid technique for data analysis.

3.8. Research limitation

The main limitation the researcher face during the preparation of this research will be the time that is not sufficient to do the through research about the subject. At the same time the researcher will face is the cost limitation, the money that is required for this research is not sufficient to do research in this particular study. The researcher also faced the time limitation, the time to collect the data from different source is not sufficient in this research.

Table 1: Gantt Chart

(Source: Created by Author)

3.10. Summary

In this part of study, it has been identify that the researcher will follow the specific approach and strategies in order to make the study more effective. In this study, the researcher will use secondary data, which has been collected from different sources. The researcher will also maintain the ethical procedure to do the research of the study.

Chapter 4: Data analysis and findings:

4.1 Introduction:

This chapter is merely based on the data that have been gathered while conducting the research. Analysis of these data has been done here. In this purpose the researcher has given his priority to the secondary data and used the technique of qualitative data analysis. Particularly, this type of technique helps to conduct the analysis more in detailed manner and to give a more justified result. The data analysis is given below:

Primary Data Analysis:

A sample population of 30 Mangers of International business and aggregated business were interviewed over a same questionnaire. With then questions in the interview, it roughly took a total of ten minutes to answer all the questions. While the preferred mode of interviewing was the written questionnaire that was circulated through the email, other also agree to voluntarily participate over the phone. This data has been assimilated to draw conclusions and various recommendations in the next chapter have been made on this data as well. For nay research to be conducted it is imperative to understand the level of information that is prevalent in the sector of the interview. This is why agro and agro related managers were chosen by method of random sampling from medium and small sized businesses to ensure that equal and just participation is ought.

This has also been adhered with the ethical considerations where in the research questions that were drafted for the purpose of the research were disclosed to the participant and the intent of the questionnaire was well explained. It is only then that the researcher has been able to accumulate unbiased and justified opinions in order to conclude the research paper.

The questions that were drafted are given in the appendix of the Paper.

Inferences Drawn:

For the majority of the employees that were employed in Agribusiness firms they did not have in depth knowledge about the policies and the various tactics of international agricultural export. This implies the fact that peoplepower employed in these companies are not employed to innovate and research upon the current problems, but just fulfil the daily needs of the organization.

This pertains to the basic need of awareness among the people. Such an initiative will help in making the farmers aware of their rights and standing and reduce their dependence on the business magnates that have captured the markets and eft little for the marginal farmers who thrive on farming and agriculture. Take for instance the scenario where in the number of years of experience in the agribusiness industry is compared with the academic qualification of the managers employed. In this case it can be seen that all managers handling international trade and agribusiness and not Agro graduates. This means that all they would be concerned with is making money and would not know how to improvise upon the basic requirements of the industry.

Again, when asked what the scope of the growth of agriculture and agribusiness in India was, not all the mangers were sure of the path that this domain would take in the future. This has led to the demotivation of the people where in despite knowing that this is the most resourceful domain, not much is being done internally to make it a lucrative offering for the masses to engage in this domain personally and professionally. The chart below validates the above made statement.

Furthermore, it has been the occurrence of the company issues so far that has troubled the exports of the companies. While other reasons can be attributed to high taxes, various internal company issues and governmental export policies.

When asked what would benefit the exports the most, a majority of people were of the opinion that better improvements would be made with respect to improvisation in export policies that would allow trade to happen. The graph below represents this equation and the mind-set.

Many people believe that India still needs to improvise upon the right technology that can be applied to agriculture to boost the performance in produce and allied products. While some are also of the opinion that the industry is well saturated and would not be able to grow at any improvement made.

The chart below represents the people’s opinion about the scope of growth of agriculture. As discussed before, many people think that there is a magnitude of scope of growth that is left and believe in the current systems bringing out the maximum output.

A probe was also conducted on the practices that would benefit the Indian Agriculture and subsequently also improvise upon the exports. As per the answers of the findings, it has been evaluated that the factor that would prove to be most beneficial would be the better export policies if and when applied.

Similarly a majority of people are of the opinion that Sugar cane Cultivation has the maximum scope of growth as far as the exports of sugarcane, and related products is concerned.

For many people who are the key industry players, the satisfaction with the budgets that have been applied is not enough. They believe that budgets at the national level that are majorly focussed on improving the scope of agriculture in the country are much needed at the moment. This is the time that India can capitalise upon the various aspects of the agricultural scope of work and with the country getting into organic farming, the scope of growth is well defined.

Overall, the questionnaire has been an enriching information pool that has brought to light the various aspects of the internal conditions of the country. This has further helped the researcher in drawing conclusions and understanding the need of the present items such that he exports of the country can be taken to a higher level and increased benevolently.

Such a practice would not only be able to place India as a major exporter on the global map but also help in improving the business relationships between India and the other countries. It is only with the increase in the GDP that the country can seek to shift from the developing country status to the developed nation status.

4.2 Secondary data analysis:

In this particular study, the researcher has used the secondary data. Secondary data are those data which we get from books, journal, and websites rather than from interviews, surveys. The researcher has studied several websites, journals and books to collect the proper secondary data for the study.

There has been a gauged long term growth perspective that the Indian Economy at the moment can depict and the primary reasons attributed to such growth are young population, savings that are healthy and foreign investment that is growing day by day. The country in fact has been long trying to gain a space into global economy. As predicted by the global financial experts, the country has also displayed a potential of becoming the third largest economy by the end of the next decade. According to the International Monetary fund, globally, the country also has scope and potential to expand greatly as compared to other developing nations due to its rich agricultural resources and natural resources. India was also able to display considerable performance by topping the World Bank’s growth outlook in the fiscal year of 2014-15 with 7.3% growth that is expected to rise to almost 8.3% in this year (Mahendra Dev, 2014).

In the country, the agricultural sector is the biggest employer of the national economy and has been unfortunately on a declining spree as far as the contribution to the national economy is considered. It also ranks at the second position in the Worldwide Farm Output. Various Agricultural and allied sectors like Fishing, Logging and forestry apart from mainstream agriculture have been able to employ almost 49% of the total employed population in 2014. Starting from 1951, where agriculture was the biggest contributor to the National economy, the contribution to the GDP has been steadily declining. Still it is the biggest employment source in the country (Lewis, 2015).

India, being the largest producer of jute, Milk and pulses, along with the cattle population, ranks at the second largest in the world. With a total of 170 million animals in 2011, the resources of allied and agricultural farm animals has also increased. Indian takes the second lead in the production of wheat, sugarcane and nuts. Rice is the major cropping choice of the famers that have also made the country not only sustainable but also ready for export of surplus. In fact, a total of 77,000 tons of silk was also produced in the country in 2015 itself. The major exports that the country has are Basmati Rice, Wheat, Spices, Dry fruits, Fresh Fruits, beef, Cotton, coffee and other cash crops inclusive of but not limited to tea and cereals. And the major export relationships have been built with the Middle East, South east and East Asia (Moïsé, Delpeuch, Sorescu, Bottini and Foch, 2015).

4.2.1: Analysing the past 5 years ‘performance of export of agricultural sector:

As per the data given by the Reserve Bank of India it can be seen that exports of agricultural products increased to 225.13INR billion in December,2014 from 217.28 INR billion a month ago. An average of 56.14 INR billion exports of agricultural products has been recorded in the books for the years between 1991 and 2014. In January, 2015 exports of Non Basmati rice CMLV was 166709 million INR and the exports of Non Basmati rice was 19977 million INR. Value of exports of cereals was 5927.76 USD million. Exports figure of coffee, tea, mate and spices were 1637.41 USD million. Export of meat and edible meat offal was 2752.50 USD million (Gulati and Saini, 2015). From the findings it is easy to comprehend that India’s current agriculture export sector is facing a lift up. The world market has seen a massive 21 per cent growth in India’s export leaving all of its peers in the back. Data shows that the Indonesia being the second on the list has a growth of 17.6 per cent whereas Brazil being the third one has only 14.9 percent growth (Rao, Babu, Chandra, and Chary, 2015). In the last five years, the agricultural export growth rate to LCDs of India was more than 300%, whereas in case of Indonesia, it was just 133% and in case of Pakistan, the agricultural export growth rate was less than that of Indonesia.

4.2.2. Drivers of growth

There have been various drivers that can be considered to be important for the growth of the country’s agricultural produce.

In the last few years the GCF also called the Gross Capital Formation has been dwindling between 6 to 8 %. Surprisingly, with less technology and modernization this figure was 18 % in the 1980’s. This is completely indicative of the fact that the other non- agricultural sectors are receiving more investments than the agricultural sector. In line with the overall growth, whereas the other sectors have been able to capture the global markets completely, the lower performance of agricultural and allied exports shows that enough initiatives and focus has not been laid on this domain. The immense pressure of the growing population seems to be the biggest restraining factor as far as the growth of exports is concerned. Anything is exported only when it is in surplus. For a country that has billions of mouths to feed, to be able to grow more than what is required become difficult. One of the key indicators Driver in Agri Growth is GCF. GCF increased from 7% to 11% till the fifth 5yr plan (Rao, Babu, Chandra, and Chary, 2015).

From the 9th Five year plan onwards, till when it kept increasing, a reverse pattern started. Slowly it has now settled at a figure of 18.7 % in the last few years. Though this figure has almost doubled, the contribution of agriculture to the GDP has not increased.

Farm mechanization can be explained as a technological package where in the to ensure that all agricultural operations are carried out timely, the productivity and quality of the crops in increased with step wise processes and procedures. There is also increase in the efficiency with which the land is being used and also the labour productivity.

Usage of appropriate technology and machinery to increase crop output has been the major focus of all the crop mechanisation initiates that have bene taken up so far. While Indian agriculture seems to be dominantly mastered by the hands and manual labour, with the governmental schemes and credit options, the sales of machinery and tractors has been on a high (Rao, Babu, Chandra, and Chary, 2015).

4.2.3. Seeds, Irrigation and Credit Water

A key input for the survival of crops, the irrigation facilities, seeds and water go hand in hand. Though, for many people, water may be a renewable resource, but it keeps going scarce. The source of the water is precipitation and rainfall and is a natural phenomenon that may or may not happen on time. This makes the distribution of water highly skewed such that the technical feasibility is increased.

Estimates have shown that after the development of the complete irrigation potential that the country has the cropped area of 200million Hectares b would be completely irrigated well enough to sustain without natural rainfall also (Pursell and Gulati, 2013). One of the major challenges therefore is the most efficient rain water harvesting. In situ and Ex-situ water harvesting is the main complication that the farmers face. Even most of the foreign investments that are made are made in this sector. Therefore this makes irrigation the most important and dominant concern that the country is facing at the moment. Everything about cropping from the land to the seeds and the absorption of the fertilizers depends upon water. And it shall stay so unless Science develops a mechanism or seeds that allow the seeds to grow with very little water. The total new sown area remains around the value of 141 million hectares of land in the last 4o years.

4.2.4. PPP in Indian Agriculture

There is a remarkable increase in the growth of private sector participation in Indian agriculture. This is proven with the success of varieties like BT COTTON, hybrid seeds and maize and also the RBHs that have been able to consolidate the small land holdings. In such cases, the government has to be involved and gets to play the role of a mediator and facilitator whether the investment made is private sector or public sector. There is also a futuristic breakthrough that has to be added in terms of dams and man-made wells and reservoirs. Private sector is also making the necessary developments in order to multiply the efforts that are to be made. However, there remains a need to channelize these resources in a systematic process such that the farming community as a whole is benefitted. Certain areas like Raid fed areas, tribal zones and natural resource management have not been able to attract private participation. Pulses, millets and the public research system remain critical till now (Pursell and Gulati, 2013).

4.2.5: Indian import market versus export market relating to agricultural sector:

In order to analysis the secondary data, importance on data relating to import of agricultural sector is also given. Current data shows that the main commodity from agriculture sector that India imports is vegetable oils. After that come pulses. According to data in the FY 2014-15 India has made expenses amounting to INR 17,063 crores. Other wood and wood products have been imported for INR 11,888 crores. Cashew, cotton raw including wastes are also on the import list (Gulati and Saini, 2015).

4.2.6. Comparing the agricultural export of India with the other Asian countries

As per some recent surveys, it has been identified that the agricultural exports in India has grown at a high rate. In the comparison with the other Asian countries like Pakistan, Vietnam, Malaysia or Indonesia, India is the leading one. In the last five years, the agricultural export growth rate of Indonesia is 133%, whereas the agricultural export growth rate of India is 314%, which is more than double growth rate of Indonesia. The trade surplus in the agriculture sector in India was more than 5 billion dollar in the year of 2013 (Sharma, Müller and Roy, 2015). The constant focus of the government has helped in this tremendous development of the agricultural export in India. In the international market, presently India is at 10th ranking in the agricultural export.

In case of the comparison between the agricultural export growth rate in India and Vietnam, the difference is lesser than the difference between the agricultural export growth rate between India and Pakistan or Malaysia. This is because India and Vietnam are the import partners and the governments of both the countries have taken several policies to make the agricultural export strong. In the year of 2009, the agricultural export of India and Malaysia was more or less same but in 2013 the agricultural export in India was more than $5 billion, whereas in case of Malaysia, it was $2.25 billion (Sharma, Müller and Roy, 2015). This was much lower than that of India. Therefore, it can be said that in the comparison of agricultural exports among the Asian

4.3 Summary

In order to conclude this chapter it will be fair to say that all the relevant data have been searched to give it a practical view from original sources. While calculating the data no imaginary formulas were put to get the result and No counterfeiting is done while presenting the data to avoid any biasness.

The contribution of agricultural export to GDP has declined from 30% to a dip of only 15 % in the last thirteen years. This comes as an unwanted ratio as Agriculture in India is not a standalone industry and is vitally connected with the supply and demand chains in the manufacturing industry (Gakhar and Kumar, 2015). One of the major problems that the country is facing is the challenge of adequately feeding the increasing population. Secondly, the problems that are associated with productivity that could wither be natural or manmade, and thirdly, the liberalisation, forced the people to leverage the natural resources and infrastructure to meet every day needs. This calls for a rationalised and in depth analysis of the resources that can be utilised and also a study about the effectiveness of the utilization.

Small Land holdings are also a major problem in Indian Agriculture. There are fragments of land amounting to less than 10 hectares in almost 85 % of the cultivated area. 60 % of the cultivated area is lesser than 4 hectares in land. Another point that needs to be noted is the fact that that Strong networks of milk and Dairy Products have been instrumental in the development of various Milk Cooperatives that have contributed to the production of almost 100 million tonnes of milk in 2006-07. A total of 1.13 lac Village Societies and cooperatives form the national Milk grid that is detrimental in linkages formed between various milk producers and consumer spanning 700 cities and towns. It was the delicensing of the Dairy Sector in 1991 that was able to direct a considerable amount of private funds both within and from outside the country in this sector (Gakhar and Kumar, 2015).

Livestock has been contributing to almost 27% of the GDP from the agriculture and allied sector. With effective and rationalised backward and forward linkages, this sector promotes many industries and is a sustainable option for many vulnerable income groups in the country (World Health Organization, 2015). Labourers and Small and marginal farmers also thrive in this industry. And this is why livestock may be said to be playing a major role in the socio economic conditions of the country. Agriculture not only caters to the livelihood needs of the farmers and sections of the society but also is a major employer for women.

5. Conclusions and Recommendations

India has the potential to play a bigger role in exports than what it is able to do now. The position in Rice Export can also be greatly increased with efforts in the right direction. Though at the moment, it holds the second position, the country is also a world leader when it comes to products like, Buffalo milk, spices, mangoes and bananas. Biotech crops have also found an entry into the market. In the year 2006, the country was able to cultivate almost 3.8 million hectares of land as agricultural crops that were genetically modified. It was an endeavour by 2.3 million farmers that decided to shift from the traditional cultivation and adopt technological interventions of genetically modified crops. A successful example of this was the BT COTTON that gained huge importance in the country and exports.

There are certain initiatives that have to be considered. India needs to progressively adopt advanced technologies that are not only economical but also conform to the natural climatic conditions. To apply a technology that does not relate to the natural climatic settings would end up in waste. There is also added emphasis on technologies that are drafted for particular rain fed areas. While genetic modifications have been applied sparingly, an overall application would yield better results.

Improvements also need to be made in data and information in the researches that are used for sustainable agriculture and planning. In addition to the research, care also needs to be taken for bridging the various gaps between the knowledge that is gained and its results derived when it is applied practically.

As per the budget that was declared for the fiscal year, 2015-16, the government has been detrimental in planning the best set of executive decisions and budgetary allowances for this sector. As per the assessments made by the government, there are two major factors of soil and water that need immediate attention. This is the prime factor why enriching the soil and increasing the fertility are a major concern for the government

A Soil health card scheme has been launched to ensure that the quality of soil being used for cultivation has been retained and increased. Organic farming can only be supported when the soil being used for cultivation is enriched enough. This has been outlined in the Paramparagat Krishi Vikas Yojana’. The "Pradhanmantri Gram Sinchai Yojana’, has been a hugely successful intervention as far as the access to irrigation facility has been directed (Gakhar and Kumar, 2015)


The government has also been able to draft a Unified National Agriculture Market inorder to boost the income and opportunities for the farers and the MGNREGA is supportive of the actions taken so far. In fact a total of 5,300 Crores amounting to USD 815 million was also contributed to the Micro-Irrigation and Watershed development under the "Pradhan Mantri Krishi Sinchai Yojana”. This scheme forces the states to look at the micro irrigation facilities.

For enhancing the exports, the Dept. of Agriculture and Cooperation that falls under the Ministry of Agriculture has also signed MOUs with almost 52 countries for easy export. While these facilities majorly focus on export and rates to be marginalised, the other operations like research and funding and Germplasm exchange have also been considered. Many countries under this signing have added to the Post harvest management and food procession technology that has been shared with Indian farmers (Gakhar and Kumar, 2015).

The government of India has also been able to relate to the synchrony between development and agriculture and therefore has been able to contribute to the rural development such that the farmers do not feel the need to sell their land for sustainability. This is why the GOI has contributed to the Rural Infrastructure Development Fund, Rural credit funds and Short term rural credit funds. An ambitious target of almost USD 131 Billion was also kept aside of the agriculture credit during the 2015-16 fiscal year.

There are various steps that have been taken to streamline the international relations between various countries to emphasize on exports. India and Lithuania have been merged in agreement over food and dairy processing. The government of Gujarat was able to plan almost 20 Agricultural Produce market communities called APMCs through the electronic markets under the NAM Initiative.

Telangana has a state government that intends to spend USD 12.1 Billion over the span of three years to complete the irrigation projects that have been started and undertake new steps to improve irrigation.

A National Dairy Development Board (NDDB) has announced USD 34 Million to boost the production of milk with almost 42 dairy projects that have been initiated.

Four fertilizer plants have been revived with the help of USD 7.7 billion and two new plants are being set up.

A loan waiver scheme that was proposed by the state of Telangana was able to subjugate USD 654 million for this scheme to prevent farmer suicides and boost the morale of the farmers.

There have been invitations to the international companies and agencies to invest in Indian Agricultural scopes and schemes such as irrigation and cold storage. Several factors like reduced costs and time and better research with incentives would contribute to the development of better strategies to be applied. As a matter of fact, the shift from the traditional crops to genetically modified crops has also been able to open various avenues that have not been explored before. The 12th 5-year plan has estimated the storage capacity to expand to 35 MT. This points out to be at 4 % growth in the coming years (Gakhar and Kumar, 2015).

Tue Jul 27 15:55:40 +0000 2021

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