India targets US$1 billion in organic exports; tobacco exports surge

Focused initiatives boost organic food exports and tobacco production while addressing quality challenges in sensitive sectors like fisheries

January 2, 2025

After a decade, the government has revised the National Programme for Organic Production (NPOP) guidelines and developed a traceability and market access portal.

Mutual Recognition Agreements (MRAs) with nations like the EU and China are helping reduce rejections in sensitive exports such as fisheries

Tobacco exports are set to grow by 8% this year, surpassing INR 13,000 crore, with India remaining the second-largest global tobacco producer

The Tobacco Board aids 80,000-85,000 farmers through quality improvement initiatives and an IT-enabled e-auction system

According to a senior official, India aims to achieve organic product exports exceeding US$1 billion in the coming year while actively pursuing Mutual Recognition Agreements (MRAs) to reduce rejections in sensitive sectors like fisheries. The country’s organic food exports have grown impressively to US$494.80 million in 2023-24 from US$213 million in 2012-13. Key export destinations include the US, EU, UK, Canada, Switzerland, Australia, and countries in the Middle East and Asia. Major export items range from cereals and millet to tea, spices, and medicinal plant products.

India has seen a threefold increase in laboratories and a doubling of certifications over the past decade to address quality issues in exports, which is highlighted as a greater challenge than tariff barriers. In fisheries, the EU’s export rejections have significantly dropped from 15 in 2017 to three in 2024. Existing MRAs with nations such as the EU, China, and Bhutan are proving effective, while discussions are underway with Qatar for similar agreements.

To further strengthen organic exports, the government is updating the National Programme for Organic Production (NPOP) guidelines after ten years and introducing advanced portals for market access and traceability.

In the tobacco sector, exports are projected to grow by 8% this year, crossing INR 13,000 crore, as stated by Rajesh Agrawal, Additional Secretary in the Department of Commerce. India is the world’s second-largest tobacco producer and the fourth-largest producer of Flue-Cured Virginia (FCV) tobacco, a key ingredient.

The government regulates tobacco production to align with its commitment to the WHO Framework Convention on Tobacco Control (WHO FCTC), maintaining production levels at approximately 270 million kg annually. Notably, no new farmers have been registered for tobacco cultivation in the last decade.

The Tobacco Board supports around 80,000-85,000 farmers, helping them meet the quality standards required by importing countries through capacity-building initiatives. Additionally, an IT-enabled electronic auctioning system for FCV tobacco ensures transparency and efficiency in trade.

Source: Economic Times

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