Uttar Pradesh Targets $5.99 Billion in Annual Agricultural Exports with Crop-Specific Commodity Boar

Team Finance Saathi

    05/Jul/2024

Key Points:

Uttar Pradesh plans to achieve $5.99 billion in annual agricultural exports by establishing crop-specific commodity boards.

The initiative aims to boost farm productivity, stimulate food processing, and revitalize the agricultural value chain over four years.

The ICFA has established the UP-State Agriculture Council to promote agro-industry growth and will host the 'Agro World 2025' summit in Lucknow.

Uttar Pradesh (UP) is taking significant strides toward revolutionizing its agricultural sector with an ambitious plan to achieve annual agricultural exports worth US$ 5.99 billion (Rs. 50,000 crore) within the next four years. The state is setting up crop-specific commodity boards to enhance farm productivity, stimulate food processing industries, and revitalize the agricultural value chain, thereby substantially improving the livelihoods of farmers and bolstering the state’s economy.

Minister’s Vision for Agricultural Growth

Minister of Horticulture, Mr. Dinesh Pratap Singh, has articulated a clear vision for Uttar Pradesh’s agricultural future. He firmly believes that with strategic support for agricultural startups and robust government-industry collaborations, UP can significantly surpass its current annual agro exports of nearly US$ 2.40 billion (Rs. 20,000 crore). The minister emphasized that these initiatives are not just about increasing exports but also about enhancing farmers' incomes and ensuring sustainable agricultural practices.

Establishment of Crop-Specific Commodity Boards

One of the cornerstone strategies in this initiative is the creation of state-level horticultural commodity boards. These boards will function similarly to the renowned Spices Board of India, focusing on high-value crops such as potatoes and bananas, which are extensively cultivated across 2.1 million hectares in UP. By concentrating on these specific crops, the state aims to optimize production efficiency, improve quality, and boost both domestic and international market access.

Mr. Singh also highlighted the high local demand for diverse products such as strawberries, dragon fruit, and flowers, indicating a robust domestic market that can serve as a strong foundation before scaling up for export. This approach ensures that the farmers have a reliable market for their produce, thus stabilizing their income and reducing dependency on international market fluctuations.

Role of the Indian Chamber of Food and Agriculture (ICFA)

In tandem with state efforts, the Indian Chamber of Food and Agriculture (ICFA) has taken proactive steps to promote the agro-industry in UP. The ICFA has established the UP-State Agriculture Council, chaired by Mr. Mukesh Singh, which is dedicated to advocating for sustainable agricultural practices, enhancing market access, and supporting export initiatives.

The Council’s mission is multifaceted. It aims to promote innovative farming techniques, provide farmers with access to advanced technologies, and facilitate better linkage between farmers and markets. These efforts are expected to not only increase productivity but also ensure that UP's agricultural products meet international quality standards.

Agro World 2025 Summit

Looking forward, ICFA has announced plans to host the 'Agro World 2025' summit in Lucknow next February. This summit is envisioned as a pivotal event to further agricultural initiatives and expand export opportunities. The event will bring together industry leaders, policymakers, and agricultural experts to discuss and strategize on the best practices and innovations in agriculture. The summit will specifically target export markets in the Gulf, Latin America, and Africa, regions identified for their substantial demand for agricultural imports.

Boosting Farm Productivity and Food Processing

Enhancing farm productivity is a key objective of this initiative. The state plans to introduce advanced farming techniques and provide farmers with access to modern agricultural equipment and high-quality seeds. Additionally, there will be a concerted effort to promote integrated farming systems, which can lead to better resource management and higher yields.

Simultaneously, the state is focusing on stimulating the food processing sector. By establishing more food processing units and encouraging investment in this area, UP aims to add value to its agricultural produce. This not only increases the shelf life and marketability of products but also creates additional employment opportunities within the state.

Revitalizing the Agricultural Value Chain

The revitalization of the agricultural value chain is another critical component of UP's strategy. This involves improving every stage of the chain, from production and harvesting to processing and distribution. The state plans to develop better storage facilities and establish efficient transportation networks to ensure that agricultural products can reach markets promptly and in good condition.

Moreover, there will be a focus on enhancing cold chain infrastructure to reduce post-harvest losses, particularly for perishable items such as fruits and vegetables. By ensuring that farmers have the necessary support and resources, UP aims to create a more resilient and efficient agricultural sector.

Supporting Agricultural Startups and Innovations

Recognizing the importance of innovation, the state is keen to support agricultural startups that bring new technologies and ideas to the sector. These startups can play a crucial role in introducing precision farming techniques, developing drought-resistant crop varieties, and creating efficient supply chain solutions.

To foster this ecosystem, UP plans to provide financial incentives and create an enabling environment where these startups can thrive. Collaboration between the government, industry, and academic institutions will be encouraged to ensure that innovative solutions are effectively implemented on the ground.

Conclusion

Uttar Pradesh’s ambitious plan to achieve US$ 5.99 billion in annual agricultural exports through the establishment of crop-specific commodity boards represents a significant step towards transforming its agricultural landscape. By boosting farm productivity, stimulating food processing, and revitalizing the agricultural value chain, the state aims to not only enhance its export potential but also improve the livelihoods of its farmers.

With the support of the ICFA and the upcoming 'Agro World 2025' summit, UP is well-positioned to explore new markets and establish itself as a major player in the global agricultural industry. As these initiatives unfold, the state’s commitment to sustainable practices and innovation will be crucial in driving long-term growth and prosperity in the agricultural sector.

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