Q 365: What will be the future of agro products / commodities in the export business?
A: 1. The speed at which India’s economy is growing is worth appreciating.
2. India is extremely focused on exports.
3. All products have export potential and the Government of India is extending support to exporters.
4. The share of agricultural exports in India’s total merchandise exports is about 12%.
5. Demand for fruits and vegetables, foodgrains etc. is going to increase in future.
6. We must focus more on research, technology improvements, protected cultivation of high-value crops.
7. International demand for Indian agro products is increasing substantially.
8. In the future, we will see an increased demand for food as the planet’s population grows. By 2050, the world’s population is expected to rise from 8 billion people today to 9.8 billion.
9. The world must sustainably produce 70% more food to meet the needs of the growing population.
10. Major agricultural commodities include cereals, rice, wheat, pulses, sugar, fruits and vegetables.
11. Agricultural exports have gained momentum.
12. Fruits, vegetables, oil seeds, spices and tobacco are some of the agro products which have registered growth.
13. Exports of fresh fruits and vegetables have risen by 15% in the first eleven months of FY24.
14. Export of banana has bright future/scope.
15. Food and Agriculture Organization and United Nations had recognised 2023 as International Year of Millets.
16. Following are some of the factors which we should concentrate on for export growth:
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Good quality |
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Improved packing including consumer packing |
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Aggressive marketing
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Competitive prices
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Assured delivery
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Q 366: What is the role of third party inspection?
A: 1. The overseas buyer is always worried about the quality of the goods he is going to import.
2. One of the methods to overcome this fear is to facilitate third party inspection of the goods before shipment.
3. Many times, exporters also want the goods to be inspected at their factory/warehouse so that future queries regarding quality claim can be avoided.
4. Third party inspection and details related to that should be incorporated in the order form initially.
5. There are several inspection agencies of international repute providing inspection related services.
6. SGS is one such international agency.
7. Inspection by third party gives confidence to the buyer.
8. Selection of the inspecting agency is important.
9. Testing of sample in approved laboratory is also essential to establish quality.
10. Appendix 2G of Handbook of Procedures (HB) provides the list.
11. Export Inspection Agency (EIA) is a government organisation that also undertakes inspection of export cargo.
12. Exporters should also consider importing country’s requirements.
Q 367: We plan to expand the business in different fields and are interested in getting in-depth knowledge regarding export and import. How do we go about it?
A: 1. We have noted your plan to expand your business and also to go for exports and imports.
2. International business provides vast opportunities.
3. International business is different from domestic business in many ways.
4. You need to acquire good knowledge about many subjects like:
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Overseas Markets |
Foreign Trade Policy |
Customs
Procedures
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Rules of Importing Country
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Working of Foreign Exchange |
Shipping and Logistics |
5. You may join some institute/college to gain systematic knowledge about exports and imports
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6. You can refer various magazines/newsletters on this subject.
7. We suggest that you visit relevant websites regularly to get updated knowledge related to exports.
8. We recommend that you attend seminars organised by Chambers of Commerce, Export Promotion Councils, DGFT and similar organisations.
9. Overseas travel will help you to understand the global market.
10. Visiting as well as participating in international exhibitions will give you a boost in international business.