Merchants' Chamber MCCI Bengal Agri Food Forum...

MCCIBengalAgri Food& AlliedExporters’Forum 2019

Merchants' Chamberof Commerce & Industry

Friday, 15 November 2019 Hotel Lalit Great Eastern

The objective of the Forum was to bring

prominent Policy Makers & Industry Captains

together for facilitating meaningful discussions &

deliberations about development of exports of

Agri Food & Allied products from Bengal.

MCCI Bengal Agri-Food & Allied Exporters’ Forum 2019 I 1

MCCI Bengal Agri-Food & Allied Exporters’ Forum 2019Friday, 15 November 2019 Hotel Lalit Great Eastern

A Report

Some issues for discussion at the Forum were :

• Current status, opportunities &constraints related to export businessofAgriFood&Alliedsector,

• Policies,initiatives&schemesforsuchexportbusiness

• Issuesrelatingtothestringentproductionnormsoftheimportingnations

Shri Vishal Jhajharia, President, MCCI delivering his Welcome Address. Seated on the dais [from L to R] : Shri Souvik Banerjee, DG, MCCI; Shri Ankush Saha, Joint Secretary, West Bengal Fruits & Vegetables Exporters’ Welfare Association; Shri R. K. Mondal, Deputy General Manager, Agricultural and Processed Food Products Export Development Authority (APEDA); Dr. D. D. Patra, Vice-Chancellor, Bidhan Chandra Krishi Viswavidyalaya (BCKV); Shri Rajesh Kumar Sinha, IAS, Secretary, Departments of Agricultural Marketing & Agriculture, Govt. of West Bengal (Guest of Honour); Shri Prasenjit Hans, Special Secretary, Department of Agriculture, Govt. of West Bengal; Shri Amarendra Narayan, Additional Commissioner , Kolkata Customs Zone; Dr. S. K. Verma, Deputy Director (Ento), Regional Plant Quarantine Station, Ministry of Agriculture & Farmers Welfare, Govt. of India; Shri Archiman Lahiri, Deputy Director, The Marine Products Export Development Authority (MPEDA) and Shri Suresh Agarwal, Co-Chairman of Standing Committee on Agriculture & Food Processing, MCCI.

• Issuesrelatingtocertificationforexports

• Backward integration of perishableproducts

• Awarenessrelatedtounregulatedinput(chemicals)usageatthefarmlevel

• Postharvestmanagement

• Logisticconstraintsaffectingexport

• TransferoftechnologyfromLabtoLand

TheChamberorganizedMCCI Bengal Agri-Food & Allied Exporters’ Forum 2019on 15th November 2019 at Hotel LalitGreatEastern,Kolkata.

The objective of the Forum was todeliberate with all the important stake

holders, on the policies, prospects andchallengesofAgri–Foodandalliedexportsfrom West Bengal as also to showcase& enhance exports and to attract furtherinvestmentsacrossalltheverticalsinthesector.


In his Welcome Address, Shri Vishal Jhajharia, President, MCCI said that theUnion Government approved India’s first-everAgricultureExportPolicy,2018in lastDecember. The Government had alreadycome out with a policy to double farmers’incomeby2022,anditiswithoutanydoubtthat exports of agricultural products wouldplay a pivotal role in achieving this goal.The broad objectives of the Policy include:doublingagriculturalexports frompresentUS$ 30+ Billion to US$ 60+ Billion by2022 and reach US$ 100 Billion in thenextfewyears,henoted.Sincetheeconomyopened up in 1991, India’s agriculturaltrade surplus reported more than ten-foldincreasebetween1991-92and2013-14.InFY19,exportsofagriculturalandprocessedfood products totalled US$ 38.49 billion.However,inthelastthreeyears,agricultural

Shri Vishal Jhajharia

TheForumwasaddressedbyShri Rajesh Kumar Sinha,IAS,Secretary,Departmentsof Agricultural Marketing & Agriculture,Govt.ofWestBengalas Guest of Honour.The following distinguished SpeakersaddressedtheForumasSpecialGuests:

•Dr. D. D. Patra,Vice-Chancellor,BidhanChandraKrishiViswavidyalaya(BCKV)

•Shri Amarendra Narayan, AdditionalCommissioner,KolkataCustomsZone

•Shri A. K. Das, Joint Secretary,Department of Agricultural Marketing,Govt.ofWestBengal

•Dr. S. K. Verma,DeputyDirector(Ento),RegionalPlantQuarantineStation,Ministry

ofAgriculture&FarmersWelfare,Govt.ofIndia

• Shri Archiman Lahiri,DeputyDirector,TheMarineProductsExportDevelopmentAuthority(MPEDA)

• Shri R. K. Mondal, Deputy GeneralManager,AgriculturalandProcessedFoodProducts Export Development Authority(APEDA)

• Shri Ankush Saha, Joint Secretary,WestBengalFruits&VegetablesExporters’WelfareAssociation

TheForumwasalsoattendedbyShri Prasenjit Hans, Special Secretary, Department ofAgriculture,Govt.ofWestBengal.


Addressing the Forum,Shri Rajesh Kumar Sinha, IAS, Secretary, Departments ofAgricultural Marketing & Agriculture, Govt.ofWestBengalsaidthatWestBengalhastoincreaseitsagriexports,bothinvolumeandspeed.Thefarmershavebeenoverproducingwithsurplus;theyhavenotbeenabletotaptheexportmarketmuch.

He emphasized that the focus shouldbe changed from production for domesticconsumption to production for exports. Tillnow, theproductionwas tomeetdomesticrequirements,sincethedomesticdemandis

Shri Rajesh Kumar Sinha

exportsfellby22%whileimportsincreasedby 62%, thereby resulting in a significantdeclineoftradesurplusof70%.

MCCIPresidentemphasizedthatBengalhashugepotentialintheAgri-businessandagri-exportssectorsandthemultipliereffects

cangoalongwayintransformingthesocio-economic landscape of the State. WestBengalmusttakepro-activestepstotapthemarketsofSouthAsia,SouthEastAsiaandtheMiddleEastandincreaseit’sagri-exportstothesehighpotentialmarkets,hesaid.

beingmet,thefocusshouldbetostarthavingtailor–madeproductionforexportmarkets.

He said that the state has over 50lakh metric tonnes of potatoes in surplus,which could be exported. Acceptability ofaproduct isalsovery important,henoted.ThestateproducesPokhraj&Jyotivarietiesofpotatoes,whicharenotacceptedbyotherstateslikeUttarPradeshandPunjab.

He emphasized that contract farmingshouldbepromoted,andbackwardlinkagesshould be given due importance. Farmersshouldbeorientedintoadifferentdirection.The entire production procedure right from

Shri Vishal Jhajharia, President, MCCI [extreme right] in conversation with Guest of Honour – Shri Rajesh Kumar Sinha, IAS, Secretary, Departments of Agricultural Marketing & Agriculture,

Govt. of West Bengal [extreme right].


Dr. D. D. Patra, Vice-Chancellor, BidhanChandra Krishi Viswavidyalaya (BCKV)pointedoutthatIndiaisoneofthe12majorbiologicalcentresintheworld,inwhichalltheagroclimaticzonesarepresent.

He said thatwith growing population,

land is getting squeezed. Within 10 yearsto come with the increasing population,the world will need 70% more food forsustenance. Within the same timeframe,Indiawouldneed50%morefoodproduction.Thiswillbedifficulttoaccomplishasdemandfor nutritious food will rise with less land,heobserved.Thefallingsupplyoflandwillbe coupled with soil degradation becauseofnon–judicioususeoffertilizersandmetalpollution.

He stressed on higher efficiency ofagriculturalresources,particularlyon

t MorecropperdroptMorecropperunitoffertilizerstMorecropperunitofradiation.

Hefeltthatimportanceshouldbegiventoalternate/diversifiedcroppingsystem.Theareaswhicharenotutilizedforcereals likerice/maizecanbeusedforothercrops.Hesaidthataparticulartypeofoil,whichhashigh value in themarket, canbeextractedfromgrass.Thistypeofcroppingshouldbe

Dr. D. D. Patra

soilpreparation, fertilizer/ fungicide,buyingofseedsandthenfarmingshouldbemarketoriented.

HeobservedthattheFarmer–ProducerGroups have a huge role to play in this.Therearearound400suchFarmerProducerGroupsinthestate.

HereferredtoaJapanesefirmjudginga production facility of West Bengal using128 parameters and it took samples fromSingur and North Bengal. He expressedsatisfactionthatalltheparametersweremetandthestaterankednumberoneregarding

theexportquality.

Referring to the huge wastage in thissector,ShriSinhapointedoutthattheproblemlayinmovingthecropfromthefarmers’fieldtotheconsumers’plate,as30%offoodarebeingwasted. InWest Bengal, there is anacute shortage of proper packaging facilitywhichishinderingthegrowthofexports,headded.

Hementionedabouttheimportanceofhavinglogistichubs,temperaturecontrolledwarehousesandavailabilityofvanscarryingharvest.


Shri Amarendra Narayan

encouraged.

He referred to use of technology toenhancecroppingintensity.Croppingintensitycanbeincreasedby180%inWestBengal.Hesaidthatsincelandisfixed,nohorizontalexpansion is possible, cropping intensityand crop rotation are extremely important.Non conventional areas should be broughtunder production. More investment andmore private entrepreneurship are requiredinagriculture,whichwillalsogeneratemoreemployment.

He spoke about the following majorchallengesinthesector:

t Wastageofagroproductst Outdatedtechnology

t Insufficient cold storage andwarehouses.

Dr.Patrapointedoutthatacrossallthe6ecologicalconditionsinWestBengal,theparameters like soil condition, precipitationetc.areentirelydifferent fromoneanother.Location specific appropriate technology isimportant, which should be popularized.GovernmentsupportisneededforR&D.

Healsostressedonthefollowing:

t FormationofClusterst ProperwayofdoingOrganicFarmingt Postharvestmanagementtoreducewastage

t Promotion of agro–businessand generation of employmentopportunities

Shri Amarendra Narayan, AdditionalCommissioner, Kolkata Customs Zone saidthatIndia’srankinghassharplyimprovedinthecategoryofTradingAcrossBordersintheEaseofDoingBusiness.

He spoke about development ofStandardOperatingProcedure(SOP),incaseoffailureofsystem.

He referred to the single windowsystemoftheDepartmentforproperonlinefunctioningandassuredhelpandsupporttotheexporters.

ShriNarayanspokeabout theflagshipprogramme, Authorised Economic Operator(AEO),whichaimstoenhanceinternationalsupply chain security and facilitatemovementoflegitimategoods.HesaidthatAEOisaprogrammeundertheaegisoftheWorld Customs Organization (WCO) SAFEFrameworkofStandards.


Dr. S. K. Verma, Deputy Director (Ento),RegionalPlantQuarantineStation,Ministryof Agriculture & FarmersWelfare, Govt. ofIndiasaidthatconsignmentoffoodtoothercountriesshouldbefreeofpests.

He mentioned that the QuarantineDepartment monitors the situation on the

Shri Archiman Lahiri, Deputy Director,The Marine Products Export DevelopmentAuthority(MPEDA)saidthatIndiaexportedaround US$ 7 billion marine products in2017–18,outofwhichshrimpsconstituted

Dr. S. K. Verma

Shri Archiman Lahiri

fieldinordertohaveasystematiccontrolonpests.Postsurveillance, if theproductsare95%freefrominsects,theyarefitforexportstoUK.

Hespokeaboutdifferenttypesofpestsandalsooftechnologiestowardsdetectionof such pests for their containment byadopting domestic quarantine regulations,to undertake phytosanitary certification(for issuance of Phytosanitary Certificates(PSCs) as also to undertake fumigation/disinfestations/ disinfections of fruits andvegetablestocontrolinfestation.

HefeltthatthereshouldbeasystematicapproachtoBengal’sproduction.InMumbai,there are 40 pack houses,while there areonly 3 in West Bengal. This figure shouldincreasetoatleast50,henoted.

He stressed on organizing trainingprogrammes for the farmers for pest freecultivation & judicious use of pesticides/fungicides.HealsorequestedMCCItocomeforwardtowardsgenerationofawarenessinthissector.

around69%.Therehasbeena12%growthofvalueaddedmarineproductsin2018–19over2017–18.

West Bengal exports 12% of India’smarineexportsand87%ofshrimpsarefrom

AlthoughAEOisavoluntaryprogramme,it enables Indian Customs to enhance andstreamline cargo security through closecooperationwiththeprincipalstakeholdersoftheinternationalsupplychainviz.importers,exporters, logistics providers, custodians

or terminal operators, custom brokers andwarehouseoperators,headded.

He advised all the exporters to go forAEO for certain advantages like reductionof bank guarantee, a window of 15 days,deferredpaymentsforcargoandothers.


WestBengal,mostlyfromthedistrictsofPurbaMedinipurandNorth&South24Parganas.

He pointed out that focus at MPEDAhasbeenonthefollowing:

tInfrastructureinharbourtoreducepostharvestlosses

Shri R. K. Mondal

Shri R. K. Mondal,DeputyGeneralManager,Agricultural and Processed Food ProductsExport Development Authority (APEDA)observedthattherehasnotbeenmuchgrowthinexportsoffreshfruitsandvegetables.

Hesuggestedthat inorder topromoteexports,itisimportanttoworkwithFarmerProducer Companies. He mentioned thatfarmershavenotbeengivenassurancethattheirproductswillbesuccessfullyexported.

He felt that some sort of consortiumneeds to be createdwith the 400 Farmer-

tDiversification of products fromshrimpstocrabs&seabass

tRevival of traditional black tigerprawninWestBengal

tCoolchainfacilitiestTappingofforeignmarketsinNewZealandandSouthKorea.

He said thatWest Bengal is the onlystate, inwhichproductionoforganicblacktiger prawn is registered to enter into theexport market. MPEDA is trying to reviveblack tiger prawn inWestBengal.He saidthattheexportsofcrabswillincreasein2020and2021,duetobackwardintegrationwiththefarmers.

Heobservedthat90%offishnowcomesfromVietnam.Around2.5lakhtonesoffishareannuallyimportedbyIndiafromVietnam.There are tremendous opportunities toincreaseaquacultureinthehugehinterland.

WestBengalisgrowingsofarasmarineproducts are concerned. However, goodcoordination is required with the exportinspectionagencies.

Producer Companies to grow exportablequality of fruits and vegetables. It is thecollectiveresponsibilityofalltocapturetheworldmarket.

WestBengalislaggingbehindbecauseof certain restrictions on Indian exports byEU.Exportersshouldhavedirectaccess tothefarmers.

He said that production should beoriented towards exports. For example,LadiesFinger isoneof the largest saleableproducts fromWestBengal.Registrationof


Shri Ankush Saha

Shri Ankush Saha, Joint Secretary, WestBengalFruits&VegetablesExporters’WelfareAssociation spoke about the challengesfaced by the exporters in general. He saidthat in spite of high demand for exportproducts and huge potential in this sector,lack of coordination between the differentstakeholdersoftenaffectstheexportersinanadversemanner.Hereferredtotheproblemsfacedbyallexportersregardingquarantine.

Hementionedaboutthebanonexportsof vegetables in 2017 and the immenseproblemsfacedbytheexporterssincethen.He spoke about the incidence of detectionofsalmonellain2017inready–to–eatbetelleaves thatwereexported toUK.Heurged

farmersforbetel leavesisalmostnegligiblein West Bengal, this should be enhanced.GrowingofgreenchillyexclusivelyforEuropecanalsobeconsidered,asitfetchesahighpriceinthatmarket.Bengalmangoescannotbeexportedbecauseoflackofregistrations.

Hementioned thatGobindoBhog riceisnotregisteredasanexportitemfromWestBengal.ThereisahugemarketforGobindoBhogrice,whichshouldbeexploited.Notasinglericemill inWestBengalisregisteredforexportstoUS,thisshouldberectified.

He advised that there should be areaspecific cluster approach. He urged 2–3ricemills to come forward for registration.Infrastructurecanbedevelopedormodifiedforthosericemills,asperforeignstandards.

He informed that APEDA can provideassistance up to 40% of the total projectcost,theassistancenotexceedingRs.1cr.,foranynewprojectrelatedtoagriexports.Heinvitedentrepreneurs toavail suchbenefitsgivenbytheGovernmentofIndia.


IntheQ&ASession,Shri A. K. Das,Joint Secretary, Department of AgriculturalMarketing, Government of West Bengalsaid that the State Government provides a30% transport subsidy forbothexportanddomesticsaleofpotato.

forproperremedialmeasuresforproblems,whichareaffectinghighvalueexportsofagriproducts.

He felt that exports of fruits andvegetables from both West Bengal andIndiahavedroppedintherecentyearsandGovernmentinitiativeisneeded.

Heexpressedconcern that thephytocertificate is not easily available from the

Shri A. K. Das Shri Suresh Agarwal

The Session ended with a heartyVote of Thanks by Shri Suresh Agarwal,Co-Chairman of Standing Committee onAgriculture&FoodProcessing,MCCI.

Department which has affected the exportof betel leaf, potato and other agriculture&horticulture products although there is alargemarketoverseasforsuchproducts.

A proactive role for the Governmentis needed with better coordination amongGovernmentDepartments.HealsourgedthatGovernment support shouldbe given to alltheexportersandpoliciesshouldberectifiedaccordingtotheneedsoftheexporters.


Ü West Bengal has a huge potential intheAgri-businessandagri-exportssectorsand the multiplier effects can go a longway in transforming the socio-economiclandscape of the State. The state musttakepro-activestepstotapthemarketsofSouthAsia,SouthEastAsiaandtheMiddleEast.

Ü The major challenges in the sectorare wastage of agro products, out datedtechnologyandinsufficientcoldstorage&warehouses.

Ü 4 important recommendations :FormationofClusters,OrganicFarmingina proper way, Post harvest managementtoreducewastageandPromotionofagro–business and generation of employmentopportunities.

Ü Contract farming should be promotedand due importance should be given tobackward linkages. Farmers should beoriented into a different direction. Theentire procedure chain right from soilpreparation, use of fertilizer/ fungicide,buyingofseedsandthenfarming–shouldbe market oriented. Acceptability of aproductisalsoveryimportant.

Ü Farmer–ProducerGroupshaveahugerole to play in this. Farmers should begivensomeassurance that theirproductswillbesuccessfullyexported.

Ü There are around 400 such FarmerProducer Groups in the state. Someconsortiumneeds to be createdwith the400FarmerProducerCompaniestogrowexportablequalityoffruitsandvegetables.It is the collective responsibility of all tocapturetheworldmarket.

Ü Inasampletestingofcertainvegetable

production facilities at Singur and NorthBengal for exports, done by a Japanesecompany using 128 parameters, WestBengalrankednumberOne.

Ü In West Bengal, there is an acuteshortageofproperpackagingfacilitywhichishinderingthegrowthofexports.Logistichubs,temperaturecontrolledwarehouses,availabilityofvanscarryingharvestshouldbegiventopmostpriority.

Ü Importance should be given toalternate/diversifiedcroppingsystem.Theareaswhicharenotutilizedforcerealslikerice/maize can be used for other crops.A particular type of oil, which has highvalueinthemarket,canbeextractedfromgrass. This type of cropping should beencouraged.

Ü Since land is fixed, no horizontalexpansion is possible, cropping intensityandcroprotationareextremelyimportant.Nonconventionalareasshouldbebroughtunderproduction.

Ü Use of appropriate technology is veryimportant to enhance cropping intensity.Location specific appropriate technologyshouldbepopularized.

Ü ThereshouldbeasystematicapproachtoBengal’sproduction.Therearearound40 pack houses in and aroundMumbai,while there are only 3 in whole ofWestBengal. Training programmes shouldbe organized for farmers for pest freecultivation & judicious use of pesticides/fungicides.

Ü India exported around US$ 7 billionmarineproductsin2017–18,outofwhichshrimps constituted around 69%. Therehas been a 12% growth of value added

Important Takeaways


marineproductsin2018–19over2017–18.West Bengal exports 12% of India’smarine exports and 87% of shrimps arefromWestBengal,mostlyfromthedistrictsofPurbaMedinipurandNorth&South24Parganas.

Ü There are tremendous opportunitiesto increase exports of fish, prawn, crabsandothermarineproductsfromthestate.Exportsofcrabswillincreasein2020and2021, due to backward integration withthefarmers.

Ü Revival of black tiger prawn in WestBengal is very important. West Bengalis the only state, inwhich production oforganicblack tigerprawn is registered toenterintotheexportmarket.

Ü There has not been much growth inexportsoffreshfruits.WestBengalislaggingbehind because of certain restrictions onIndian exports by EU. Exporters shouldhavedirectaccesstothefarmers.

Ü Registration of farmers from WestBengalare important forcertainproductslikebetelleaves,greenchillyandmangoes,whichfetchahighpriceabroad.

Ü There is a huge market for GobindoBhogricefromthestate,whichshouldbeexploited. Not a single ricemill inWestBengalisregisteredforexportstoUS,thisshouldberectified.

Ü APEDA can provide assistance up to40%ofthetotalprojectcost,theassistancenotexceedingRs.1cr.,foranynewprojectrelatedtoagriexports.

Ü GovernmentofWestBengalprovidesa30%transportsubsidyforbothexportanddomesticsaleofpotato.

Ü The flagship programme, AuthorisedEconomicOperator (AEO) enables IndianCustomstoenhanceandstreamlinecargosecuritythroughclosecooperationwiththeprincipalstakeholdersof the internationalsupply chain viz. importers, exporters,logisticsproviders,custodiansor terminaloperators,custombrokersandwarehouseoperators.ExportersshouldgoforAEOforcertainadvantages like reductionofbankguarantee,awindowof15days,deferredpaymentsforcargoetc.

Ü In spite of high demand for exportproductsandhugepotentialinthissector,lackofcoordinationbetweenthedifferentstakeholdersoftenaffectstheexportersinanadversemanner.

Ü PhytocertificateisnoteasilyavailablefromtheconcernedDepartmentwhichhasaffectedtheexportofbetelleaf,potatoandother agriculture & horticulture productsalthoughthere isa largemarketoverseasforsuchproducts.

Ü Proper remedial measures arerequired to address the problems, whichare affecting high value exports of agriproducts. Initiative isneeded toboostupthefallingexportsoffruitsandvegetablesfromWestBengal.

Ü AproactiveroleisneededonthepartoftheGovernment,withbetter coordinationamong all the Departments. Governmentsupport should be given to the exportersandpoliciesshouldberectifiedaccordingtotheneedsoftheexporters.

Ü More investment and more privateentrepreneurship are required inagriculture,whichwillalsogeneratemoreemployment.

Report written and compiled by Smt. Munmun Banerjee, Assistant Director General, MCCI

MCCI Bengal Agri-Food & Allied Exporters’ Forum 2019 I 12Display of agri products at Sufal Bangla stall of Department of Agricultural Marketing, Govt. of West Bengal

Felicitations to the Guest Speakers

Merchants' Chamber of Commerce & Industry15-B, Hemanta Basu Sarani, Kolkata - 700 001

Phone : +91 33 2248 6329 / 1502 / 3123, +91 33 2662 5070-74Fax : +91 33 2248 8657 I E-mail : [email protected]

Website : www.mcciorg.com

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Department ofAgricultural MarketingGovt. of West Bengal

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