ABOUT APEDA

1.

Introduction

The Agricultural and Processed Food Products Export Development Authority

(APEDA) came into being through an Act of Parliament, the Agricultural and
Processed Food Products Export Development Act, 1985 (2 of 1986). The
APEDA Day falls on 13th February.

2.

Constitution of the Authority

As prescribed by the statute, the APEDA Authority consists of the following

members namely;

A Chairman, appointed by the Central Government;

The Agricultural Marketing Adviser;
One member from Planning Commission;
Three members of Parliament;
Eight members appointed by the Central Government representing various
Ministries;
Five members appointed by the Central from States and the Union
Territories;
Seven members appointed by the Central Government representing:
Indian Council of Agricultural Research, National Horticulture Board,
National Agriculture Cooperative Marketing Federation, Central Food
Technological Research Institute, Indian Institute of Packaging, Spices
Export Promotion Council and Cashew Export Promotion Council.
Twelve members representing: Fruits and Vegetables Products Industries,
Meat, Poultry and Dairy Products Industries, Other Scheduled Products
Industries, Packaging Industry;
Two members appointed by the Central Government from amongst
specialists and scientists in the field of agriculture, economics and
marketing of the scheduled products.

3.

Mandate of the Organisation

As per the APEDA Act, the Authority is responsible for the development and
promotion of the export of following 14 products mentioned in the First Schedule
to the APEDA Act.

The First Schedule

Fruits, Vegetables and their products

Meat and Meat Products
Poultry and Poultry Products
Dairy Products
Confectionery, biscuits and bakery products
Honey, jaggery and sugar products
Cocoa and its products, chocolates of all kinds
Alcoholic and non-alcoholic beverages
Cereals and cereal products
Groundnuts, peanuts and walnuts
Pickles, papads and chutneys
Guargum
Floriculture and floriculture products
Herbal and medicinal plants

In addition, APEDA has been entrusted from time to time with the responsibility
to monitor exports of some non-scheduled items such as wheat, coarse grains
and also import of sugar. The number of products looked after are approx. 546.

4.

Assigned Functions

As per Section 10 of APEDA Act, the following functions have been assigned to
the Authority:
Development of industries relating to the scheduled products for export by
way of providing financial assistance or otherwise for undertaking surveys
and feasibility studies, participation in equity capital through joint ventures
and other reliefs and subsidy schemes;
Registration of persons as exporters of the scheduled products on
payment of such fees as may be prescribed;
Fixing of standards and specifications for the scheduled products for the
purpose of exports;
Carrying out inspection of meat and meat products in slaughter houses,
processing plants, storage premises, conveyances or other places where
such products are kept or handled for the purpose of ensuring the quality
of such products;
Improving of packaging of the Scheduled products
Improving of marketing of the Scheduled products outside India;
Promotion of export oriented production and development of the scheduled
products;
Collection of statistics from the owners of factories or establishments
engaged in the production, processing, packaging, marketing or export of
the scheduled products or from such persons as may be prescribed on any
matter relating to the scheduled products and publication of the statistics
so collected or of any portions thereof or extracts therefrom;
Training in various aspects of the industries connected with the scheduled
products;
The activities of APEDA range from development of data-base of the mandated
products, markets and services and dissemination of this information to the
exporters. APEDA administers financial assistance schemes for strengthening of
marketing intelligence and database, quality upgradation, research and
development, development of infrastructure, development of market and
transport assistance.

5.

Organisation Setup

APEDA has its head office in New Delhi and has 5 Regional Offices at Mumbai,
Bangalore, Hyderabad, Kolkata and Guwahati.
APEDA has Virtual Offices in 12 states, where APEDA does not have its direct
presence.

APEDA is a lean organisation with following manpower

The following is the human resource strength (90) of APEDA:

Chairman*
Secretary*
Director
General Manager
Dy. General Manager
Asstt. General Manager
Group B
Group C
Group D
Director (BEDF)
Advisor
Consultants
TOTAL

:
:

01
:
:
04
:
11
:
:
:
:
:
05
:

01
01
08
31
27
08
01
01

90

*Appointed by the Central Government.

CHAIRMAN

SECRETARY

DIRECTOR
(R K Boyal)
(FFV, ORGANIC, PQ,
CEREALS, REGIONAL
OFFICES)
GENERAL MANAGER

V K Vidyarthi
DGM (PQ)
V K Kaul, DGM
(FFV, Floriculture)

Saswati Bose, DGM

(Sunil Kumar)
(STATUTORY
MATTERS, C&I,
REGISTRATION, PFV,
OPF)

U K Vats, DGM

N C Lohakare, AGM

Dr.PVSM Gouri
Advisor
(Organic)

(Cereals)

(A S Rawat)

(Tarun Bajaj)

(B&F, INFRA,
EDF, MAI)
Navneesh Sharma,
DGM

(LIVESTOCK,
QUALITY, HINDI,
V K Vidyarthi
RTI)
DGM (Hindi)

GENERAL MANAGER
(S S Nayyar)

Devendra Prasad

AGM (Trade Fair, PR,

Seminar, MDA)

AGM (Quality)
Umesh Kumar AGM
(P&A, Legal)

(EDF)

(Regn., C&I)

(P&A LEGAL, TRADE

FAIR, PR, SEMINAR,
MDA)

Samidha Gupta

( INFRA, MAI)

V K Kaul, DGM
M P Vijay

(Organic)

GENERAL
MANAGER

(PFV & OPF, (Statutory

Matters)

(Organic)
Reeba Abraham, AGM

GENERAL
MANAGER

Sunita Rai
R K Mondal, DGM

AGM (Livestock)

(B&F)

A K Gupta
Director
(BEDF)
5

Details of Sanctioned and Existing Strength as per the

Recruitment Rule as on 01.02.2014
Vacancies

Sanctioned
strength as
per RR

Present
strength

Chairman

1*

1*

---

Secretary

1*

1*

---

Director

---

General Manager

--

Dy. General Manager

Asstt. General Manager

16

11

3+2(adhoc)

SUB-TOTAL

30

24

4+2(adhoc)

Manager Accounts

---

Executive Secy to Chairman

---

Accountant

--

Librarian

---

Executive Officer (EDP)

---

Field Officer

---

Sr. Office Executive

Office Executive

---

Sr. Personal Executive

---

Jr. Hindi Translator

---

SPE to Chairman

---

Group A

Group B

SUB-TOTAL

32

31

EDP Executive

--

Personal Executive

Assistant Executive

13

13

--

Cash Executive

---

Jr. Asstt. Executive

16

11

Driver

---

SUB-TOTAL

45

27

18

Jamadar

Daftri

---

Peon

13

SUB-TOTAL

15

90

30+2
(adhoc)

Group C

Group D

TOTAL

124

6.

Export Performance

alue in Rs. Lacs

Qty in MT.

2011-12

PRODUCT

Qty

2012-13

Value

Qty

2013-14

Value

Qty

Value

FLORICULTURE

Floriculture

30926.02

36532.15

27121.86

42344.60

22485.21

45590.62

Fruits & Vegetables Seeds

15205.81

28776.35

17168.00

34772.39

17816.70

41053.76

46131.83

65308.50

44289.86

77116.99

40301.91

86644.38

Total

FRESH FRUITS & VEGETABLES

Fresh Onions

1309924.82

172299.80

1666872.60

196662.66

1482498.58

316961.25

734178.83

131048.20

768627.20

151633.56

953731.22

229332.27

5841.56

23108.40

5295.47

19983.57

6726.36

32453.50

63441.29

20974.30

55584.99

26471.78

41279.97

28542.85

Fresh Grapes

108584.56

60288.15

172744.42

125942.78

192616.91

166647.45

Other Fresh Fruits

270437.20

75541.11

263970.29

77975.78

240552.45

102159.21

2492408.26

483259.96

2933094.97

598670.13

2917405.49

876096.53

Other Fresh Vegetables

Walnuts

Fresh Mangoes

Total

PROCESSED FRUITS AND VEGETABLES

Cucumber and Gherkins( Prepd. &

Presvd)

Dried & Preserved Vegetables

Mango Pulp

258603.00

74503.45

238624.89

85659.18

218749.79

95520.18

64794.09

52678.47

68520.25

63795.76

56158.38

74271.74

150499.06

62082.91

147815.69

60855.73

174860.33

77294.76

Other Processed Fruits &

Vegetables

274807.05

157759.82

269217.26

173305.54

287384.61

226660.26

Pulses

174625.18

106793.13

202751.36

128500.32

345051.38

174637.14

923328.38

453817.78

926929.45

512116.53

1082204.49

648384.08

Total

ANIMAL PRODUCTS

Buffalo Meat

986618.46

1374573.96

1107506.27

1741289.30

1449758.65

2645781.59

11181.04

25522.07

16046.91

42565.86

22608.95

69411.53

Other Meat

318.33

364.34

194.13

233.33

255.26

323.44

Processed Meat

575.94

949.53

796.92

937.41

488.78

691.75

Animal Casings

923.56

2705.01

602.53

1837.08

352.20

2845.84

624181.11

45805.29

577864.27

49493.41

437673.53

56587.37

25639.51

28935.68

87824.21

141209.83

159228.51

331857.40

838.66

3719.76

13650.78

55625.72

11461.71

63692.84

26089.03

32123.96

25780.70

35632.05

28378.40

44501.46

1454.31

5302.71

1663.83

9016.14

2025.32

13163.79

1677819.95

1520002.31

1831930.55

2077840.13

2112231.31

3228857.01

Sheep/Goat Meat

Poultry Products

Dairy Products

Casein

Natural Honey

Albumin( Eggs & Milk )

Total

OTHER PROCESSED FOODS

Groundnuts

832616.93

524644.77

535637.36

406536.09

509664.84

318773.51

Guargum

707326.43

1652386.71

406311.81

2128701.08

601945.42

1173452.4
9

Jaggery & Confectionery

207694.35

76421.98

246566.93

91759.98

266471.96

113687.91

16678.58

17597.61

19083.34

29392.13

15962.95

57078.03

Cocoa Products

10

Cereal Preparations

301289.71

188859.70

293124.30

224076.04

321468.07

285500.15

Milled Products

171158.13

35890.14

273584.39

60360.80

418397.99

100576.93

Alcoholic Beverages

214110.69

145944.99

264466.08

190937.00

311564.19

239357.58

Miscellaneous Preparations

229341.93

121916.02

293958.19

171205.70

338972.77

218388.87

2680216.75

2763661.92

2332732.40

3302968.82

2784448.19

2506815.
47

Total

CEREALS

Basmati Rice

3178174.43

1544959.62

3459898.93

1940939.06

3757271.42

2929995.91

Non Basmati Rice

3997719.57

865912.61

6687990.85

1444880.75

7133183.37

1774995.98

Wheat

740746.76

102326.85

6514810.60

1052900.15

5562374.74

926161.08

Maize

3855721.20

515751.49

4788328.25

709634.06

3954236.61

598365.81

217962.03

33540.86

652975.53

108427.36

657700.54

115690.83

11990323.99

3062491.43

22104004.16

5256781.38

21064766.68

6345209.61

Other Cereals

Total

Grand Total

19810229.16

8348541.90

30172981.39

11825493.98

Source: DGCIS Annual Data

11

30001358.07

13

OTHER PROCESSED
FOODS
Groundnuts

433753.23

2178.41

832616.93

5246.45

535637.36

4065.36

Guargum

441607.7

2938.7

707326.43

16523.87

406311.81

21287.01

Jaggery & Confectionery

72361.48

323

207694.35

764.22

246566.93

917.6

9077.54

126.97

16678.58

175.98

19083.34

293.92

226485.28

1261.79

301289.71

1888.6

293124.3

2240.76

99101.24

197.06

171158.13

358.9

273584.39

603.61

122295.16

816.84

214110.69

1459.45

264466.08

1909.37

159209.15

Cocoa Products
Cereal Preparations
Milled Products
Alcoholic Beverages
Miscellaneous Preparations

832.81

229341.93

1219.16

293958.19

1712.06

1563890.7
8

8675.58

268021
6.75

27636.6
3

2332732.
4

33029.69

2370658.39

11354.63

15449.6

3459898.93

19409.39

100685.78

231.29

3178174.4
3
3997719.5
7

8659.13

6687990.85

14448.81

Wheat

394.47

0.7

740746.76

1023.27

6514810.6

10529

Maize

3010423.39

3359.46

3855721.2

5157.51

4788328.25

7096.34

209647.62

289.02

217962.03

335.41

652975.53

1084.27

119903
23.99
198102
29.17

30624.9
2
83485.4
2

22104004
.16
30172981
.39

Total
CEREALS
Basmati Rice
Non Basmati Rice

Other Cereals

Total
Grand Total

5691809.6
5
11567574.
18

15235.1
42437.64

52567.81
118254.95

Source: DGCIS Annual Data

7.

Financial Assistance Schemes

In its efforts to augment the agro exports APEDA provides financial

assistance under its following Financial Assistance Schemes:

Scheme for Market Development

Scheme for Infrastructure Development
Scheme for Quality Development
Scheme for Transport Assistance

12

8.

Approved Budget for the XII Plan Period

During the XII Plan period, the Government has allocated Rs. 1100
Crores for APEDA Schemes. The scheme-wise, year-wise allocation
are as under. APEDA has no non-plan allocation.

Budget allocation for 2012-13 to 2016-17

Name of scheme
2012-13
2013-14
2014-15
2015-16
2016-17
Total
Development
of
60.00
62.00
62.00
65.00
50.00
299.00
Infrastructure
Market Development
23.00
29.00
31.00
34.00
34.00
151.00
Quality Development
8.00
9.00
10.00
11.00
12.00
50.00
Transport Assistance
89.00
116.00
125.00
130.00
140.00
600.00
Grand Total
180.00
216.00
228.00
240.00
236.00
1100.00

9.

Important activities carried out under APEDAs various scheme

a)

Infrastructure

The inadequacy of post harvest infrastructure facilities which result in huge

inefficiencies and wastages has persistently been identified as a major constraint
in boosting export of perishable products from the country. APEDA has been
actively involved in creation of cold chain infrastructure for horticulture produce to
improve quality and value addition of produce and to achieve optimum shelf life
resulting into increased quality exports of Indian agriculture produce. Recently,
major focus has been laid to encompass setting up of processing units for
horticulture and agriculture produce and also strengthen the infrastructure at
seaports.
Further, Prime Ministers Office has also identified Creation and
Management of Cold Chain Infrastructure for Agriculture products as a thrust
area and targets have been fixed for different Government agencies engaged in
13

the field of creation of cold storage capacities including APEDA for agro export
products. APEDA has created a cold storage capacity of 41159 MTs till 2001213. For the year 2013-14 APEDA has set a target to achieve creation of 8000
MTs cold storage capacity.
For the XII Five year Plan recently approved by the Government, under its
Scheme for Infrastructure Development, APEDA provides 90% assistance of the
eligible project cost to State Government Agencies for setting up of cold chain
infrastructure which includes pre-cooling, cold store, high humidity cold store, CA
stores, and material handling plant and machinery viz. sorting grading, washing,
waxing, packing in an integrated manner; Centre for Perishable Cargo at airports;
infrastructure at seaports, ICDs, Borders, Processing Units, Testing Laboratories,
etc. for common use by exporters for exports of agriculture products.
Various State Government agencies, State Agricultural Marketing Board, State
Agriculture / Horticulture Departments and other organizations in the past, have
been benefited by APEDA for setting up of such facilities by strengthening their
export infra. capabilities and capacities. More than 100 projects have so far
been sanctioned by APEDA in last 15 years in various states, which includes
setting up of integrated pack houses with pre-cooling, cold storage, material
handling, Vapour heat treatment, irradiation facilities; Centres for Perishable
Cargo at 12 major airports, flower auction centres, Setting up/Upgradation of
Laboratories for export testing for common use, etc. A new component
Establishment of common infrastructure facility in PPP mode by Government or
public sector agency is added to encourage private sector wherein grant to the
tune of 75% of the project cost will be provided to SPV. The detailed guidelines
are being finalized to operationlise the same.
Further, assistance to private exporters is provided ranging from Rs. 7.5 lakhs to
Rs. 75.00 lakhs for purchase of specialised transport units; setting up of
intermediate storage; setting up of mechanized handling facilities such as sorting
grading, washing, waxing, ripening, packaing, palletisation, pre cooling, cold
storage, pre-shipment treatment such as fumigation, x-ray screening, hot water
dip, vapour heat treatment, Irradiation etc., cable cars for banana, Vapour Heat
Treatment, ETP, specialized storage facilities such as CA, MA, etc.

14

b)

Quality Development and Assurance Programmes:

Another major area of concern is strengthening the capabilities of Indian

exporters for adherence to international quality standards. Under its
scheme for Quality Development, APEDA extends financial assistance to
exporters for purchase of lab equipments and implementation of quality
systems like ISO, HACCP, BRC, GAP etc.
Number of activities have been carried our under the quality development
and assurance programme:
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)
11)

Development of Pre and Post harvest protocols for export of fresh

fruit and vegetables.
Implementation of Good Agricultural Practices and food safety
management system.
Developed Export standards for 49 fruits and vegetables.
Development and implementation of plant registration schemes for
peanuts and peanut products.
Recognition of packhouses and processing units
Procedure of export of fresh grapes and pomegranates through
control of pesticides.
Recognition of implementation and certification agencies for food
safety management system.
Recognition of laboratories for export testing and monitoring plans
implemented by APEDA.
Training programmes for up gradation of personnel of recognized
laboratories.
Prepared National Programme for Good Agricultural Practices
(IndiaGAP) which I notified by BIS.
Regular participation and contribution in Codex meetings for
safeguarding the interest of export of Indian Agro Products.

More than 500 manufacturer exporters of food products have implemented

food safety systems such as HACCP ISO-22000, BRC etc with APEDAs
assistance.
APEDA continuously motivates and encourages its member exporters to
adhere to quality systems such as ISO, HACCP, BRC, GAP etc.

15

c)

Research & Development

APEDA promotes commercial research for the benefit of processors/

exporters under its scheme for Research & Development through various
organisations under ICAR / CSIR system and Agriculture Universities. As
per the requirement of the trade following R&D projects have been
undertaken.
1)
2)
3)
4)
5)
6)
7)

8)

d)

Commercial research on Lychees and vegetables

Improvement in varieties and pre-harvest management in grapes
through National Research Centre (NRC) for Grapes, Pune.
Identification and eradication of mango stone weevil through Acharya
N. G. Ranga Agriculture University, Andhra Pradesh.
Pests and Disease Management in Gherkins through University of
Agricultural Sciences, Bangalore.
Development of varieties of white onion for dehydration purposes
through Gujarat Agricultural University.
Development of Export Packaging of Dehydrated/ Freeze dried
vegetables through Indian Institute of Packaging.
Research project on improvement of shelf life in apple cultivars Red
Delicious and Ambri through Sher-I-Kashmir University of Agricultural
Sciences and Technology (SKUAST), Kashmir.
Project for Surveillance of Pests and Diseases in potato crop through
CPRI Shimla.
Development of exports standards and Codex activities

51 standards of fresh fruits and vegetables were developed which were

notified under Agmark Act. Chairman, APEDA is also Chairman of the
Standing Committee on Fruits and Vegetables to frame and notify standards
and inspection procedures under the Agmark Act.
Chairman, APEDA is also Chairman of Food and Agriculture Division FAD-10
committee of BIS to review and establish existing and new Indian Standards
as well as work related to processed food products.

16

 Participation and contribution to various shadow committees and provides

inputs in food safety standard setting process under the various Codex
committees. Offers comments to the Codex Alimentarius Commissions (CAC)
standardization process related to fresh fruits & vegetables, general principles,
food hygiene, import export & certifications, pesticide residues, CAC and
Executive Committees.
e)

Development of GAP and food safety standards

APEDA has developed National Program on Good Agricultural Practices IndiaGAP

standard, which was notified by BIS. APEDA is also a member of National Technical
Working Groups on Good Agricultural Practices (GAP) hosted by QCI for national
interpretation of GlobalGAP. APEDA participates in FSSAI, BIS and QCI committees
pertaining to food safety areas.

f)

Market Development

APEDA provides financial assistance to exporters for development of packaging

standards and design, use of modern packaging material, development and
dissemination of market information, preparation of product literatures, buyerseller meet, participation in exhibitions, fairs, exchange of delegation etc.
The activities to tap the potential on the demand side include a stepping up of
market promotional activities such as participation in international trade fairs,
commodity specific promotion campaigns, brand promotion through publicity and
organizing the buyer-seller meets. For enhancing brand image and marketing of
APEDA products, APEDAs promotional campaigns for Indian Basmati Rice,
Indian Beer, Indian Wines, Indian Curries and Indian snacks during major trade
fairs abroad, have helped to expand the market and create a market profile for
these products. Promotion campaigns for Indian mangoes and mango-based
products were held in Japan, USA, Germany, Poland, Singapore, Malaysia and
Sweden last year.
Based on the potential of specific products such as, horticulture floriculture and
cereal products, there is a need for creation of cold storages/ warehouse in
gateways to major markets like Dubai, Singapore, London and Moscow with
100% grand from APEDA.
APEDA has also been trying to expand marketing opportunities for Indian food
products by giving an emphasis on market access for various products in various
countries.

17

APEDA has achieved market access in the following:

a) Market access for mangoes in Japan, China, Australia, New Zealand and
Chile
b) Market access for grapes in China
c) Market access for Basmati rice in Japan and China
d) Opening of Russian market for plant based products
e) Equivalence with EU, Switzerland and agreement conformity assessment
with USA for Organic products.
f) Opening of markets for meat in Tunisia and Libya
Efforts are being taken to achieve market access for the following :
a)
b)
c)
d)

10.

Market access for pomegranate, grapes and litchis in USA

Market access for poultry and poultry products in Japan
Market access for basmati rice in Mexico
Market access for meat in Syria, EU, Indonesia and Thailand

Development and dissemination of Market Intelligence

Amongst APEDAs diversified development programmes for its continuous

endeavour for promoting the export of agro based products, one of its major
objectives is to develop and provide market intelligence to all the stakeholders in
the agro trade. Strong and organised information base is the backbone of any
organisation.
Over the year APEDA has effectively utilized IT tools in compilation of trade
information and dissemination of the same through various ways. APEDA has
set up it vibrant website having static market intelligence information and
dynamic online facilities for registration, submission of monthly party return,
financial assistance scheme applications etc. considering the importance and
need of actual market intelligence, APEDA has set up an agri trade portal fulfils
the need of a new entrepreneur to identify the products and its competitive in
difference markets.

11.

Basmati Development Activities

a)

Basmati Development Fund

The prime mandate of BDF is protection and promotion of Basmati Rice through
all possible measures. There are 351 instances of violation of rights in India and

18

211 instances of violation of rights in the name of Basmati in 50 countries have

been contested so far.
Under BDF, promotions of Basmati Rice have also been undertaken through wet
sampling in various international trade fairs as also in-flight promotions were
held. The International Chef Conference was held on November 23, 2011 at
New Delhi.

b)

Basmati Export Development Foundation

A Basmati Export Development Foundation (BEDF) has been set up at SVBP,

University of Agriculture and Technology, Modipuram, Meerut, Uttar

Pradesh, which has the mandate for pre and post harvest management of
Basmati rice and also promotion of contract farming. A DNA testing lab
has also been set up at the BEDF. It has been registered as a Society
under Societies Registration Act in November, 2002 and it draws its
sustenance from BDF.
c)

Registration of Basmati Rice as GI

The APEDA (Amendment) Act, 2009, received the ascent of Honble President of
India on March 6, 2009 to amend the APEDA Act 1985. The amendment has
come into force on the October 13, 2008. The amendment makes APEDA
responsible to undertake, any such measures as may be prescribed by the
Central Government for registration and protection of the Intellectual Property
Rights in respect of special products in or outside India. Such special products
are to be listed in the Second Schedule to the APEDA Act. The first product
listed in this schedule is Basmati Rice. APEDA has initiated the process for
registration of Basmati Rice as a Geographical Indication. It was published in
their journal dated 31.5.2010 inviting oppositions. 9 oppositions were received to
which responses were filed by APEDA through their lawyer. Now, hearing is due
before the Controller of Patents, Trade Marks & GI scheduled for December 17 &
18, 2012.

12.

Organic Production

APEDA has been identified as the secretariat for the National Programme for
Organic Production and it performs the lead role for promotion of export of
organically grown agro-products. APEDA on behalf of the National Accreditation
19

body is involved in the implementation of the National Programme for Organic

Production (NPOP) which includes policies for development and certification of
organic products, National standards for organic products and processes,
Accreditation of programmes to be operated by Inspection and Certification
Agencies and Certification of organic products by the accreditated Certification
Bodies. Evaluation and surveillance for accreditation of Certification Bodies
under NPOP.
Awareness programmes are organised in different parts of the country as also
the training programmes for the domestic agencies interested in taking up
inspection and certification.

13.

New Initiatives: Cluster Development

APEDA in association with NHB have identified certain clusters having export
potential. The objective is to focus on identified product clusters on the lines of
Agri Export Zone concept and address critical issues in agri export including
creation of exportable quality volume, synergies with the available resources,
logistics and market access issues. Both APEDA and NHB have designation
nodal officers to supervise and monitor these clusters. The identified products
and their clusters are Jaggery (Maharashtra), Gherkins (Karnataka), Grape &
Grapewine (Maharashtra), Mango Pulp and Fresh Vegetables (Andhra Pradesh),
Mangoes (Maharashtra), Flowers (Tamil Nadu, Karnataka & Maharashtra), Fresh
Onion (Maharashtra), Dehydrated Onion (Gujarat), Pomegranate (Maharashtra),
Banana (Maharashtra) and Peanuts (Gujarat).
Several activities have been identified including pre and post harvest operations,
supply chain management, market development for effective implementation of
the concept and to achieve the desired results. While APEDA would primarily be
focusing on quality management and market development activities, NHB, NHM,
MFPI, RKVY, State Horticulture / Agriculture Department, State Marketing
Boards and ICAR will be involved for addressing pre-harvest, post-harvest,
supply chain and R&D activities. The nodal officers of APEDA and NHB are
taking necessary steps for implementation of this concept.

14.

APEDAS Activity in North East

Organic Seminar: APEDA had organized a trainers training for the officials of
Horticulture Department of govt. of Meghalaya on 25th July,08 in Shillong
covering all aspects of where organic farming.
20

International Trade Fairs: APEDA displayed the products of North east like
Passion fruit juice, Rice, pickles etc at World Food Moscow trade fair which was
held from 23rd to 26th September,08.
Products from NER like Passion fruit juice, King Chilly (World hottest chilly),
Honey, Pickles and Rice based product was displayed at Asean N.E.India Trade
& Investment summit held at Ho Chi Minh City of Vietnam from 12th to 14th
February,2009 which attracted lot of visitors.
APEDA assisted participation of a group of people comprising of officials, farmers
etc from Assam involved in organic farming on Joha rice at Bio Fach
Germany,09.
Seminars /Workshop :
APEDA participated at the workshop on plantation crop organised by the
department of industries & Commerce , Government of Manipur in association of
MoC at Tamenglong, Manipur on 29th November,08 in which APEDA displayed
its activity in its stall and a paper was presented by Mr. A.S.Rawat, General
Manager about the schemes and activities of APEDA in North east.

Training on Floriculture Programme: A practical workshop on floriculture was

held on 30th and 31st May, 08 at Guwahati for the entrepreneurs of floriculture
from the state of Mizoram and Meghalaya by inviting experts from the
Netherlands.
APEDA organized a practical training on post harvest management on oranges
at Tamenglong, Manipur on 5th and 6th December by inviting the expert fro ICAR,
Seminar on from land locked to Land linked North East India in
BIMSTEC
Seminar organised by Ministry of External Affairs in Shillong where APEDA
highlighted the potential crops of NER for export and scheme of APEDA.
International Summit for Packaging Industry:
13 nos. Entrepreneurs from North East nominated by the Government of NE
State to participate in the event held in Mumbai from 30th September10 to 3rd
October10 was led by APEDA covering all expenses under EDF scheme.

21

Bio-Fach India 2010:

APEDA led a delegation comprising of 9 nos. of farmers / entrepreneurs
nominated by the State Govt. of North East for participation in Bio-Fach India
2010 in Mumbai which was held from 7th December to 9th December10 at
Bombay exhibition centre, Mumbai covering all expenses.
Infrastructure development:
APEDA signed a Mou with Govt. of Mizoram to set up walk-In-type Cold storage
at Lengpui Airport, Mizoram on 30th March, 2012. The total project cost is Rs.
20,64,314/= Work is under progress.
International Buyer brought by APEDA to NER
1. Italian buyers along with their QC people visited Gangtok, Sikkim from 9th
to 11th october12 looking for organic product. Meeting with state govt.
officials and field visit arranged for the visitor who appreciated quality of
fresh ginger.
2. Buyer from USA visited Assam, Manipur and Tripura from 19th to 24th
November looking for special variety of rice and other organic product from
the region. Confirmed purchase of Red rice from Assam and shown
interest on Black rice of Manipur and Khasa rice (Aromatic rice) of Tripura.

EDF-NORTH EASTERN REGION

Following the announcements made by the Prime Minister in respect of
measures the development of exports from the North-Eastern region in Shillong
on January 21-22, 2000, an Export Development Fund (EDF) has been set up
with the objective of using the resources for the development of exports from the
region. The objective of the scheme is to assist specific activities for promotion
of exports from the North-Eastern region of the country including Sikkim. All
activities, which have a linkage with the exports from the region and are designed
to help exports, shall be eligible for assistance from the fund. The scheme
covers Setting up of pioneering/pilot projects aimed at exports , Provision of
equipment and machinery for the pioneering pilot projects aimed at exports ,
Creation of Common facilities for facilitating exports ,Facility for testing and
standardization as well as quality improvement of export products, Funding
related to the exchange of trade delegations, Any other activity as notify by the
22

department of Commerce having a bearing on export promotion in the NorthEast. The major criterion for eligibility for the projects is that the proposal must
show a direct linkage with the exports from the region and should be desired to
help exports from the North-Eastern Region.

Fund Released : So Far DoC had placed an amount of Rs 59.70 Crs at the
disposal of APEDA of which 61 projects have been funded to the tune of Rs
52.60 Crs including assistance extended to exporters on Inland Transport
Assistance scheme for the North Eastern Region

15.

Traceability System

GrapeNet
GrapeNet is an internet based Residue Traceability Software System for
monitoring fresh grapes exported from India to the European Union.
GrapeNet is a first of its kind initiative in India that has put in place an endto-end system for monitoring pesticide residue, achieve product
standardization and facilitate tracing back from retail shelves to the farm of
the Indian grower, through the various stages of sampling, testing,
certification and packing.
Peanut.net
APEDA has laid down procedures to ensure control of aflatoxin residues in
peanuts and peanut products meant for exports to the EU. The
stuffing/loading of the containers can be carried out after issue of the
Certificate of Export by IOPEPC authorized by APEDA.
Peanut.net is IT-enabling of the certification system for Groundnut products
exported from India. The Stakeholders co-opted for the Groundnut
traceability system are Processing Units involved in Shelling, grading, value
added products manufacturing, etc., Exporters, IOPEPC and Accredited
Laboratories. No certificate can be issued by any Laboratory or IOPEPC
without going through this system.

23

Tracenet
Tracenet is the IT-enabled Certification-cum-Traceability system for
Organic Sector in India, with uniform, consistent, transparent data
management and certification system. It is a major Government
Intervention for providing level playing field for all stake holders in the
supply chain, among farmers, processors, grower groups and certification
bodies. It helps to monitor the overall growth and market access of Indian
organic products.
No certificate can be issued by any Certification Body without going
through this system. The system captures only relevant data at the time of
change in ownership of product that is to be finally exported. The data is
captured by the Grower Groups themselves and vetted by a certified
organization.
Each consignment of an Exporter is accompanied by a Transaction
Certificate. Certification bodies shall issue the Transaction Certificate
through APEDAs Tracenet system, either based on a previous Transaction
Certificate in cased the product has moved through multiple handlers on
the supply chain or based on a Scope Certificate when it was directly
procured from an operator, either an individual or a group.
Tracenet is among the first such national initiatives and has been
recognized with the e-ASIA award instituted by UN/AFACT in the year
2011.
Hortinet
Of late there have been several rapid alerts from EU and also from Middle
East regarding detection of beyond permissible levels of residues of
variuos chemicals in vegetables exported from India. Therefore, for control
of pesticides in Fruits and Vegetables, APEDA has evolved the Residue
Monitoring Plan for control of residues prior to shipment to EU and other
countries. The document is being given its final shape in consultation with
our technical partner - the National Referral Laboratory (NRCG), and other
stakeholders. The software development process is going on in line with
the Grapenet system. The Hortinet system will be integrated software for
monitoring of exports of Grape, Pomegranate and Okra (vegetables).
24

Initially, the system would be implemented for six identified vegetables

exported to the EU viz Green Chillies, Bitter gourd, Drumsticks, Curry
leaves, Brinjal and Okra which constitute a major chunk of vegetables
exported from India to the EU.

ABOUT MARKETING RESEARCH

Meaning
Marketing research is comprised with two words one is marketing and
second is research.
Marketing is the process of planning and execution the conception of the
product, pricing, promotion and place and distribution of ideas or goods and
services to create exchange that satisfy individual and organizational goals.
Research word also composed into two words Re and Search.
Re means again and again and search means to examine closely and
carefully together they form a noun describing a carefully systematic study
and investigation in some field facts and principles.

OBJECTIVES OF MARKETING RESEARCH

1. To understanding marketing culture, business environment and decision
making process and measures of marketing goals.
2. It help in providing information regarding manufacture, retailer, supplier
of all kinds of services.
3. To know and understand marketing opportunities.
4. To forecasting the future sales.
25

5. To understanding the customer behavior.

6. To identify the strength of organisation and making policies regarding
that.
7. Testing marketing of new product in lab.

MARKETING RESEARCH PROCESS

1. Define the Problem
2. Develop a research plan
a) Data Source- Primary data
- Secondary data
b) Research apporach- observational
- focused
- survey
-behavioural
-experimental
c) Research Instrument- Questionnaire i) open ended
ii) Close ended
-Mechanical (media)
d) Sampling plan
e) Contract method- through mail
-through phone
-personally
-online contract
26

3. Collect the information

4. Analysis the information
5. Present the report and finding

SECONDARY DATA FROM WEBSIDE

1. SOURCE BY - the odisha gazette

2. SOURCE BY- www.mapofworld.com
3. SOURCE BY- India.gov.in
4. SOURCE BY - Directorate of Agriculture, Odisha
5. SOURCE BY- India.gov.in and the odisha gazette
6. SOURCE BY - Odisha Diary bureau
7. SOURCE BY- Federation of Odisha Export Organisations
Setup by Ministry of Commerce, Govt. of India

27

STATUS OF AGRICULTURE IN ODISHA

1. Odisha is an Agrarian State. Almost 70 per cent population of the
State is dependent on agriculture. The agriculture sector contributes
only about 16 per cent of the Gross State Domestic Product (GSDP),
with more than 70% population dependence resulting in low per
capita income in the farm sector.

2. Consequently, there is a large disparity between the per capita

income in the farm sector and the non-farm sector. Therefore, it is
essential to deal with those issues which impact the income level of
farmers. Considering the high growth of GDP in the recent past, a
major reorientation in the policy is necessary to make this growth
more inclusive.

3. The decline in agriculture growth coupled with declining profitability in

the agriculture sector, in the face of rapid growth of non-farm sector,
is one of the major concerns. The National Policy for Farmers, 2007
has envisaged focusing more on the economic wellbeing of the
farmers, rather than just on production.

4. More public investment in agriculture is the present requirement as

private investment in agriculture would take time because of the slow
evolution of appropriate policies. Investment can spur up the
productivity and capital formation which is so very crucial to the
agriculture sector.

5. Considering that nearly 70 per cent of India still lives in villages,

agricultural growth will continue to be the engine of broad-based
economic growth and development as well as of natural resources
conservation, leave alone food security and poverty alleviation.
28

6. The Government of Odisha declared a State Agriculture Policy in

1996. After more than a decade, in 2008, the State Agriculture Policy
was revised and its scope widened to cover many other aspects of
the States Agriculture.

7. The State Agriculture Policy, 2008 served Odisha well and stimulated
the growth of private lift irrigation and agro industries. More than
1,00,000 lift irrigation points were established and the State saw the
growth of many new agro-based industries.

8. Farm mechanization reached new heights, the number of tractors

sold to the farmers increased from less than 200 tractors in 19992000 to more than 5,000 in 2011-2012.

9. Odisha became the largest consumer of power tillers. A

sustained and vigorous growth was maintained in agriculture. The
State Agricultural Policy, 2013 is another step in the same direction.It
will further the renaissance of the agriculture seen in the last decade
and it aims to inspire a fresh generation of farmers who will look
forward to face the challenges of the new century with confidence.
(SOURCE BY - the odisha gazette)

29

ODISHA DISTRICT MAP

30

AGRICULTURE IN ODISHA
1. The State has about 64.09 lakh hectares of cultivable area out of
total geographical area of 155.711 lakh hectares accounting for 41.16
per cent. Total cultivated area is about 61.50 lakh hectares. About
40.17 lakh hectares of cultivable area has acidic soil and approx. 4.00
lakh hectares of area suffers from salinity. That apart, nearly 3.00
lakh hectares of cultivable area suffers from water logging.

2. Agriculture sector contributes about 16% of the Gross State

Domestic Product (GSDP). About 65% of the workforce depends on
agriculture for employment /livelihood. The average size of land holding
in the State is 1.25 ha. Small and marginal farmers constitute about 83%
of the farming community.

3. The State is divided into 10 Agro-climatic zones on the basis of soil

structure, humidity, elevation, topography, vegetation, rainfall and other
agro-climatic factors. The average rainfall in the State is 1452 mm, of
which about 80% is confined to monsoon months (JuneSeptember).
The total irrigation potential created is 30.89 lakh hectares in Kharif and
15.01 lakh hectares in Rabi.

4. Rice is the main crop of the State. The total rice production in the
State during 2012-2013 is estimated to be 94.29 lakh tons. This is
the highest ever achieved in the State. The previous high was in 20072008, at 76.55 lakh tons. Agriculture in Odisha is characterized by low
productivity on account of various factors. These factors include
problematic soil (acidic, saline & waterlogged), lack of assured irrigation,
low seed replacement rate, low level of fertilizer consumption (63 kg/ha.
against national average of 140 kg/ha.), low level of mechanization etc.
(SOURCE BY - the odisha gazette)

31

AGRICULTURE AND IRRIGATION

1. Odisha is primarily an agrarian economy having nearly 30%

contribution to the Net State Domestic product (NSDP) with 73
percent of the work force engaged in this sector.

2. The cropped area is about 87.46 lakh hectares out of which 18.79
lakh hectares are irrigated. Climate and soil play a vital role in
Odisha's agriculture economy.

3. The total cultivable land exploited for cropping is about 40% of the
total geographical area and the exploitation is comparatively more in
the coastal districts of Odisha i.e. Balasore, Bhadrak, Cuttack,
Ganjam, Jajpur, Jagatasinghpur, Kendrapara, Khurda, Nayagarh,
Puri etc.
(SOURCE BY- (India.gov.in)

Facts and Figures Related to Agriculture in Odisha

1. At the time of independence food grain production of Odisha was
2393 MTs.
2. Odisha produced 7923 MTs of food grains.
3. Per hectare production of rice today is 1.4 MTs as against 1.8 MTs
for the country as a whole.
4. The yield per hectare has been 1080 kg in comparison to the national
average of 1620 kg.
32

5. In 1998 the cropping area utilized for food grain production was 89.4
% of the total cultivable land.
6. Extent of rain-fed cultivable land: 62%.
7. Fertilizer consumption: 290.56%.
(SOURCE BY-India.gov.in)

OBJECTIVES
Agriculture in Odisha still depends on the small and marginal farmers. It
continues to be characterized by low productivity due to traditional
agricultural practices, inadequate capital formation and low investment,
inadequate irrigation facilities, low water use efficiency, uneconomic size of
holding, etc.
1. To bring in a shift from the present level of subsistence agriculture to
a profitable commercial agriculture.
2. To promote sustainable agricultural development.
3. To encourage crop substitution particularly in uplands and medium
lands.
4. To focus on horticultural crops including dry land horticulture.
5. To focus on poultry, dairy and fisheries to augment the income of the
farmers.
6. To encourage modern farming system approach.
7. To encourage organic farming.
8. To enhance water use efficiency through peoples participation.

33

9. To encourage contract as well as compact farming.

10.To increase access to credit for small and marginal farmers.
11.To improve the marketing facilities and access to market information.
(SOURCE BY - the odisha gazette)

Agriculture in Odisha - Issues, Challenges Policies

and Potentials

1. Odisha is predominantly an agrarian state with agriculture and animal

husbandry, contributing 17.2% (2012-13 advance estimates,
Economic survey Report, 2012-13) to the Gross State Domestic
Product.

2. It Provides employment and sustenance, directly or indirectly, to

more than 60% of the populace, and forms the single largest
employment sector of the state. Thus, development in the field of
Agriculture holds the key to the economic development of the state.

3. Some basic issues in the sector are agriculture the mainstay of

the majority of populace, rural poverty, agriculture
diversification, diversion of food grains to bioflues, population
growth, Slowing agriculture production growth, irrigation water.
(SOURCE BY - Directorate of Agriculture, Odisha)

34

Types of Crops
The weather of Odisha favours a lot of crops for cultivation, among these
crops are:1. Food grains(rice, ragi, maize, wheat, bajra)
2. Pulses,
3. Oil seeds,
4. Jute,
5. Coconut,
6. Cashew-nut,
7. Rubber,
8. Cotton,
9. Tea,
10. Coffee

35

8.1)

Food Grains

Food grains include cereals, millets and pulses. Among cereals the
most important crop is rice. It is followed by ragi, maize, wheat,
small millets and bajra. All these, except wheat are coarse cereals and
belong to hardier crops which are mostly cultivated in the middle
mountainous, rolling uplands and plateaus of Odisha.

Where as rice is confined to the coastal plains, the river valleys and
Hirakud command areas where alluvial soil is found. Coarse cereals are
of major importance in Odisha both in production and productivity.
Among the cereals, rice is the most dominant crop. It is concentrated in
the areas of Cuttack Sambalpur, Puri, Ganjam, Balasore, Koraput,
Keonjhar and Kalahandi.

Rice cultivation is mostly confined to the alluvial coastal plains and

river valleys below the 305 meter contour line because of ideal
topographical and soil conditions.

36

8.2) Pulses

The most important pulses grown in Odisha are gram, tuar, arhar.
According to the classification the pulses of Odisha can be broadly
divided in to Kharif and Rabi crops. The Mahanadi delta, the Rushikulya
plains and the Hirakud and Badimula regions are favourable to the
cultivation of pulses.Production of pulses is basically concentrated in
districts like Cuttack, Puri, Kalahandi, Dhenkanal, Bolangir and
Sambalpur.

8.3) Oil Seeds

Sesame, groundnut, mustard, castor and linseed are the principal

oilseeds grown in Odisha. Oilseeds are categorized as Kharif and Rabi
crops. Rabi oilseeds grown as a second crop after the cereals are
harvested. Among the oilseeds, groundnut and castor are the hardier
crops and are grown in marginal and sub- marginal lands.

Oilseed cultivation is concentrated in districts like Cuttack, Koraput,

Kalahandi, Bolangir, Sambalpur, Dhenkanal and Ganjam. All these
37

are located in a less hospitable terrain. Dhenkanal is the leading til

producing district, Balasore leads in mustard and Cuttack in groundnut
production.

8.4) Jute
Among cash crops, fibre crops are especially important. Jute
accounts for the maximum areas. Odisha is the fourth largest
producer of jute after west Bengal, Bihar and Assam.

Rice and jute, compete with each other as they require almost similar
soil and climatic conditions. Cultivation of jute is primarily confined to the
coastal plains of Cuttack, Balasore and Puri districts. A considerable
amount of Roselle is also cultivated in Odisha. It dominates in the
districts of Cuttack, Ganjam, Bolangir and Koraput districts.

38

8.5) Coconut

1. Odisha is the 5th largest producer of coconut after four southern

States.

2. However, the productivity in the State is much below the national

average.

3. Main reason of low productivity is existence of large number of old

and senile plants in the State.

4. A definite, time-bound programmer will be taken up for replacement

of old & senile plants with new high yielding variety plants.

5. Coconut is highly cultivated in Odisha especially in the coastal

districts. In the coastal district of Odisha like Cuttack, Puri,
Jagatsinghpur, Jajpur, Kendrapada, Khurda, Nayagarh, Ganjam
a large number of coconut trees are seen.

8.6)

Cashew-nut

One of the most important commercial crops grown in the State is

cashew-nut. Odisha is the third largest producer of cashew-nut after
Maharashtra and Andhra Pradesh. Presently, the area under cashewnut is 1,50,000 ha, with production of Approx. 90,000 M.T.

39

Though the average productivity in the State is higher than the

national average, there is ample scope to substantially increase the
productivity. This is because of the suitable edaphic and climatic
conditions in these areas. As a result, Odisha is earning a lot of foreign
exchange by exporting cashew through Paradeep.

8.7) Rubber Plantations

To protect the degraded hill slopes of Eastern Ghats, rubber

plantation have been taken up by Rubber Board. Bright prospect for the
growth and development of natural Rubber exists in the northern Odisha
Mayurbhanj, Keonjhar and Balasore due to favourable agro-climatic
conditions.

40

Odisha is a non traditional area for rubber plantations.Inland hill areas

of Cuttack, Puri Ganjam and Dhenkanal districts have agro-climatic
conditions suitable for rubber cultivation.

8.8)

Cotton

Cotton cultivation has been taken up extensively in Koraput, Bolangir

and Kalahandi districts where suitable soil and climate conditions are
found. Sea Island cotton can be grown in the Ballipal region of
Balasore district.

41

8.9) Tea

It is concentrated in the areas of Eastern Ghats, Keonjhar mountainous

region of Phulbani and Koraput.

8.10) Coffee

It is concentrated in forest lands of Eastern Ghats, Koraput,

Kalahandi, Malkangiri, Rayagada, G. Udayagiri and Balliguda areas
of Kandhamal district

(SOURCE BY- India.gov.in and the odisha gazette

42

POTENTIAL TO PRODUCE RICE SEEDS FOR EXPORT

Rice scientists have called for improving the quality of high yielding
variety (HYV) rice seeds in the State. In Odisha, the seed replacement
rate (SRR) of rice is low as compared to adjoining states of West Bengal
and Andhra Pradesh. Even as there is a scope for increasing the SRR to
more than 30 per cent, little is being done in this regard.

Participating at a workshop on Addressing Barriers to Rice Seeds

Trade between India and Bangladesh by Jaipur-based CUTS
International here on Saturday, the rice scientists said because of
logistic constraints, both production and supply of quality HYV rice
seeds in the State could not be maintained.

Against a requirement of more than 67,000 tonnes of rice seeds to

maintain a healthy SRR of 30 per cent, roughly about 50,000 tonnes is
being supplied. Quality standards are met with adequate supervision,
Odisha has the potential to produce enough rice seeds not only for its
own farmers but also to export to other states as well as neighbouring
country like Bangladesh, they said.

43

Trilochan Mohapatra, Director, Central Rice Research Institute,

Cuttack, said Bangladesh imports 90 per cent of its requirement of rice
seeds from China, though importing it from India would have cost the
country far less. Director felt it is the trade barriers between the two
neighbours that are coming in the way of open trade.

Director added that trade in agriculture inputs such as rice seeds can
not only improve the economic situation of farmers and traders but also
have larger long term political-economic benefits for countries involved
in it.
(SOURCE BY - Odisha Diary bureau)

Potential to be No-1 State in prawn production, export

Report by Odisha Diary bureau, Bhubaneswar:
1. Chief Secretary Jugal Kishore Mohapatra has directed the
concerned departments to prioritize laying of infrastructural facilities
like road and power connectivity to fishing firms to boost up fishery
product and sea food export from Odisha. Mohapatra has given this
direction while reviewing the present status of fish farming in the
State and the potential that the State has in this sector, in a high level
meeting held in secretariat conference hall last evening.

2. Discussions in the meeting reveal that Odisha has the potential to be

No-1 State in shrimp\prawn production and export. Available data
shows Odisha has fresh water area of 6.73 lakh hect. and brackish
water area of 4.18 lakh hect along with 480 kms of coastal line. With
this natural resource State has the production potential of 6.5lakh MT
fishery product per year. At present near about 2.95 % of population
44

are engaged in fishing and contribution of fishery to GSDP is around

6%.

3. This trade supports more than 12 lakh fishermen in the State. The
area suitable for shrimp culture is 32000 hector out of which 16,000
hectors have already been developed for shrimp culture.Target has
been set to have optimal use of the developed area within coming
years, which as per one estimate, has production potential of 300,000
Ton per year, the value of which in terms of export is around
Rs.18000 cr.

4. Sources say, that the total shrimp production in the State has been
increased to 168,585 MT in 2012-13 against the production of
133,893 MT in 2011-12 thereby registering a growth of 25.91%. The
growth in terms of value of this product is around 26.31%. Similarly,
the vennamei shrimp production in Odisha has been enhanced to
91,610 MT in 2012-13 against the production of 48,430 MT in 201112 recoding a growth of 89.16%. The growth in terms of the value of
this production is 115%.

5. The policies favoring investment in shrimp culture have also been put
in place by Government of Odisha.Land lease policy, provision of
subsidy for aquaculture equipment, low power tariff for fishing firms,
subsidy for establishment of cold stores, cold chain and reefer
vehicles, etc have already been enacted by Government.

6. Upgradation of Biju Pattanik Airport to international status has also

enhanced the export potential of chilled fish and live fish.

45

7. Considering these realities, Chief Secretary Mohapatra has directed

to
prioritize infrastructural support like road and power connectivity
to 125 already indentified fishing clusters. Chief Secretary has
advised Principal Secretary Energy Pradeep Kumar Jena, present in
the meeting to regularly review the power connection status to fishing
firms .

8. Jena said that Govt will provide special feeders to the fishing clusters
through investment of Rs.250 cr. during the 12th plan period. In
Odisha power tariff for fishing is treaded at par with agriculture which
is around Rs.1.10 per unit. The departments of water resources and
rural development have been asked to focus on construction of roads
to identified clusters. Chief Secretary has also directed that land for
shrimp culture should be allotted in clusters so that infrastructural
facilities can be provided there and marketing support can also
enhanced.

46

9. Sri Mohapatra has also directed Fishery department to encourage

more number perspective entrepreneurs for shrimp culture by giving
definite target to each BFDA.
(SOURCE BY - Odisha Diary bureau)

EXPORT POLICY FOR GOVT. OF ODISHA

11.1) BACKGROUND:

The ongoing process of opening up of the Odisha economy, changing

Industrial and trade policies over the last decade and the formation of
WTO have together given rise to stiff challenges as well as tremendous
opportunities for Odisha Industry. While the challenges are the result of
liberalized imports of raw materials, components and finished products
from across the globe in an increasingly reducing tariff regime, the
opportunities arise from the opening up of the world markets for Odisha
industry.

The Govt. of India has in the recent past, initiated a number of

measures to promote exports of both primary and manufactured
products as also services. Allocation of funds for export development by
States, Export Promotion Industrial Park Scheme, Critical Infrastructure
Balance Scheme, Export Intensive Area scheme, Market Development
Scheme and setting up of Special Economic Zones, in important
locations are some of the initiatives taken by the Govt. of India. The
recent ASIDE (Assistance to States for Infrastructure evelopment and
Allied Activities) programme merges most of these initiatives of the Govt.
of India under one head.

47

Assistance under ASIDE can be utilised by the State for development

of infrastructure related to promotion of exports. Assistance under the
scheme can also be used for EPIP and Special Economic Zone projects.
Allocation to the States under ASIDE is linked to export performance of
the State. The State Level Export Promotion Committee has been
empowered to sanction schemes under ASIDE. It is, therefore,
necessary that the State fully utilise the opportunities that are thrown
open by the initiatives of the Govt. of India and formulates a
comprehensive policy and appropriate strategies for promoting exports
from the State.

Potentially, Orissa is very rich in minerals, agricultural and other

natural resources. Compared to the national reserves Orissa has 34%
Iron Ore, 50% of Bauxite, 95% of Nickel, 98% of Chrome, 24% of Coal,
32% of Mineral Sand, 77% of Graphite, 21% of Pyrophylite and 29% of
Manganese.

Orissa has got majority of its land mass under agricultural and forest
coverage. More than 60% of its population is engaged in agricultural and
allied activities. Orissa has got 500 Kms long coast line, 682 kms of
river, 1.96 lakhs hectare of water reservoir, 1.8 hectares of lake, having
tremendous potential for pisci-culture and downstream industries. Orissa
has a rich cultural and architectural heritage along with deep forest
coverage offering tremendous scope for aesthetic as well as adventure
tourism and hotel industry.

48

11.2) Indias Export Scenario:Indias export scenario during April-March 2011 is given as below:
Values in Rs. Crores
Commodity

Apr-Mar

Apr-Mar

%Growth

%Share

2011

2012

1.PLANTATION

3,319.41

3,925.17

18.25

0.69

2. AGRI & ALLIED

PRDTS

31,960.37

38,711.16

21.12

6.77

3. MARINE PRODUCTS

7,035.91

7,889.84

12.14

1.38

4. ORES & MINERALS

27,288.34

31,824.59

16.62

5.57

5. LEATHER & MNFRS

11,943.45

13,272.10

11.12

2.32

49

Indias export scenario during April-March 2012 is given as

below:
Values in Rs. Crores
Commodity

Apr-Mar

Apr-Mar

%Growth

%Share

2012

2013

1.PLANTATION

3,319.41

3,925.17

18.25

0.69

2.AGRI & ALLIED PRDTS

31,960.37

38,711.16

21.12

6.77

3. MARINE PRODUCTS

7,035.91

7,889.84

12.14

1.38

4. ORES & MINERALS

27,288.34

31,824.59

16.62

5.57

5. LEATHER & MNFRS

11,943.45

13,272.10

11.12

2.32

6.GEMS & JEWELLERY

68,752.59

70,524.45

12.34
2.58

7. SPORTS GOODS

595.87

569.26

4.47

-0.10

8.CHEMICAL PRODUCTS

69,148.93

80,148.73

15.91

14.02

9.ENGINEERING GOODS

85,462.14

118,337.18

38.47

20.70

10.ELECTRONIC GOODS

10,039.90

12,648.81

25.99

2.21

654.81

595.50

-9.06

0.10

11.PROJECT GOODS

50

12.TEXTILES

68,823.32

72,930.45

5.97

12.76

13.HANDICRAFTS

2,045.34

1,682.15

-17.76

0.29

14.CARPETS

3,774.55

4,015.49

6.38

0.70

2,904.35

6,101.84

110.09

1.07

16.PETROLEUM
PRODUCTS

51,532.80

83,946.45

62.90

14.69

17.UNCLASSIFIED
EXPORTS

11,135.77

24,518.72

120.18

4.29

456,417.88

571,641.88

25.25

15.COTTON RAW
WASTE

Total

INCL

11.3) Contribution of export:Orissas contribution to the export trade as is reflected from the
figures above is 2.21%(approx.). The growth trend of exports from
Orissa is on an average around 22%. Going by the present trend,
exports from Orissa during 2010-11 is estimated to touch Rs. 15679.15
crores(approx.).

Exports from India reflect a growth rate of 35%(approx.) till November

2011 which when compared to the previous years trend is higher by
nearly 10%. This perhaps includes exports of services and bulk
commodities. Textiles and handicrafts have shown a negative growth.
The downtrend can be attributed to Rupee appreciation against the US
51

Dollar, the decline in overall global trade and the growing price of
petroleum crude which is reflecting on the inflationary pressure in the
economy of most of the countries.

However, these are reflected on commodities which are traded

around the globe regularly. These cannot be a reflected on new
products or marginal products for which there is still room for the
country/state. By this trend, it may be concluded that the Orissa
government can achieve the target an export trade of nearly double the
figures.
{SOURCE BY- Federation of Odisha Export Organisations (Set up by Ministry of Commerce, Govt. of India)}

Target recommendations
1. The twin forces of liberalization of Odisha economy with opening up
of the Odisha market and globalisation i.e. greater integration of the
Odisha economy with the global economy, poses several challenges
as well as opportunities.

2. The entire world today is one market place. The defining principle of
international trade today is competitiveness. The future of exports for
Orissa will be predicted upon an intense interplay between the
domestic policy environment and the enormous external trading
opportunities. Under the multilateral trading regime, the ability of the
State to sieze

3. the opportunities that are opening up in the global market will be

driven primarily by the primacy of technology in domestic industry,
price and quality competitiveness and achieving global standards in
products and processes. The principles of National Treatment and
Most Favoured Nation governing the WTO regime will require the
52

domestic export community to aggressively compete with its counter

parts in the rest of the world.

4. The EXIM policy of the Govt. of India provides a national policy

framework. At the same time, the State Govt. needs to provide
focused facilitation to enable rapid growth of exports from Orissa in
sectors in which the State enjoys competitive advantages. It is in this
context that a policy framework to give impetus to establishing best
practices, providing for capacity building and facilitating quality and
competitiveness of domestic exporters becomes critical.

5. Orissa's mission statement on exports is to facilitate the rapid and

sustained growth of exports from Orissa and to increase Orissa's
share in all India exports from the present level of 2.21% to 10%
2012.
12.2) World trade is approx US$10159 billion(approx)(2005) of
which the priority sectors are:-

12.2.1) Category A - Machinery, Telecom, Computer, Automotive,

Other Transport Equipment, Food Products And Fuels. India
has only 0.4% of this market.
12,2.2) Category B- Diamonds, Jewellery, Textiles, Clothing, Iron
And Steel Products, Ores, Minerals. Value wise more than 50% of
Indias trade fall in this category.

As per the brief provided by the Orissa Government (Letter no. ISI- 80/2011/14992/I, Bhubaneswar dated 4th October 2011), Orissa
has basic strengths in Category B products which it would like to
capitalize on by concentrating on developing MSMEs especially in the
53

downstream and ancillary industries. Orissa has already attracted a

total investment of Rs. 45 000 crores in Steel, Alumina, Aluminum,
Petro-chemical , Power, IT & ITES, etc. Government of Orissa, in this
context, has outlined major areas that will focus on the Development
of MSME in Orissa.

12.3) In achieving this Mission, the focus will be on the

objectives set out below:To Collect, collate and analyze data with regard to exports
from Orissa exhaustively. FIEO, Directorate of Export Promotion &
Marketing and DGFTs office based at Cuttack and Kolkata as well as
local banks can be mobilized to co-ordinate in this respect.To focus
on existing exporting industries, and to provide them with necessary
support to give further boost to exports from these industries.To
motivate Industries in Orissa exporting through merchant Exporters in
other States to export directly.

Encourage industries/traders with products having good export

potential to enter the export field. To provide a conducive environment
for motivating new export oriented units to set-up their base in Orissa.
To bring about technology and skill up gradation in the traditional export
sectors like Textiles, Metals, Mining and Handicrafts to enhance value
addition and quality competitiveness.

Enhance the export potential of non-traditional sectors like

Electronics & Software, Services, Bio-Technology etc. To facilitate
creation of hi-tech ITI clusters in different locations in the State. To
promote innovation for export of new value added products. To increase
the unit realization of exports through technical and design inputs,
modernization of production processes and skills. To provide institutional
54

framework for developing pool of human resource talent in specialized

trades.
{SOURCE BY- Federation of Odisha Export Organisations (Set up by Ministry of Commerce, Govt. of India)}

12.4) To provide a simple transparent and responsive regulatory

environment for unhindered growth in exports.In order to
achieve these objectives, the following strategy will be
adopted:Create an exhaustive database for the reference by the State
Government of Orissa. FIEO can coordinate the same from Eastern region
ports. To create a strong networking with Export Promotion Councils, FIEO,
and Product Sectoral Associations to give impetus to Public-Private
partnership. To provide E-Governance support to exporters in Orissa. To
establish a B2B exchange, which would facilitate even the small and tiny
unit in the State to take up online trading activity.

To create a strong analytical database on exports and exporters in

Orissa. To promote Public-Private initiative in developing competitive
export infrastructure. To setup an institutional mechanism in the State for
promoting exports like State Level Export Promotion Council, State Level
Export Promotion Committee and District level Export Promotion
Committee.

To strengthen and restructure Directorate of Export Promotion &

Marketing as the Export Promotion Board of Orissa, which shall be the
Nodal Agency to plan and execute strategies to sustain Orissa as a major
hub for international trade.To focus on competitive advantages Orissa has
in the global market by increasing its exports in Information Technology,
Bio-Technology, Food Processing, Electronics & Communications,

55

Garments, Machine Tools and Precision Engineering Goods, besides the

traditional exports.

To identify sector specific support measures required for acceleration

of exports in sectors in which the State has competitive advantages and to
encourage them in consultation with the concerned sectoral association.

12.5) The proposals of FIEO are given as per the major areas
outlined by the Govt. of Orissa:12.5.1) Agricultural & Processed Food Products:Orissa is bestowed with good agro-Climatic zones. As already stated
above, the food processing industry is part of the Category A exports which
accounts for nearly US$ 6600 billion of which Indias share is negligible.
There is little disposable surplus in Agro & Horticultural products for export.

However, Orissa has the capacity to encourage growth in cash crops

and off season vegetables which it can later process and convert to various
high value chain processe agro products for exports. This can then be
exported to SAARC/ASEAN bloc and other countries. Orissa is also in the
process of upgrading the Bhubaneswar airport and Paradip port to cater to
the processed food industry. All India growth in exports of Agri and
Processed food is 21%.

12.5.2) Electronics:Growth in export of electronics products from India is 26%. Orissa,

can capitalize on the requirement of computer hardware and telecom
products. Thus instead of focussing on low cost labour , Orissa must
consider efficiency in producing standard products as the dominant source
56

of competitive advantage. The challenge lies in taking a larger pie in these

sectors by taking advantage of scale, technology and marketing.

Thus while rest of Inda is concentrating on export of software

services, Orissa will have the advantage of manufacturing and exporting
computer and computer peripherals and telecom products. this will also
ensure employment generation amongst the youth in Orissa and growth in
the education sector.

12.5.3) Engineering Goods:As pointed out above nearly 90% of the minerals and ores are
existing in Orissa. Presenly, Orissa is concentrating in mining and
supplying to various parts of the India as well as the world. Orissa hasa the
potential to open downstream industries and ancilliary industries to
manufacture Automotive components, Electrtodes, Welding Equipments,
Construction and Earthmoving Equipments, Helicopter Spares, etc.

Exports of this sector during 2006-07 is Rs. 118337 crores. from India
and the sector is growing @ 38.47%. Hence, Orissa should concentrate
less on supply of ores and minerals and should promote export of
engineering products from India. This will only ensure optimum utilization of
resources and help boost aindustrial investment in and around Rourkela,
Orissa. Exports from this sector are expected to grow annually by 40%.

12.5.4) Arts & Crafts:-

Orissa has a rich variety of crafts, a considerable production base

and a vast pool of talented and skilled crafts persons. Training in
production techniques, focus on contemporary design and upgradation of
57

craft clusters will constitute initiatives to give impetus to handicrafts exports.

This willl be done through the Orissa State Handicrafts Development
Corporation, the NGOs, in the field and Export Promotion Council for
Handicrafts.

The effort will be to reach an export target of Rs. 50 crores in 2009-12

from the level of Rs. 1.19 crores in 2006-07. Raw material banks and
design banks can be set up in order to enable the craftspersons to source
qualtiy raw materials at a low premium. Buyer seller meets can also be
organized at various clusters in Orissa where buying agents based all over
India can visit alongwith their counter parts from foreign countries to
examine and guide the craftspersons to manufacture export quality
products. A design data bank can also be maintained for the benefit of the
artisans.

12.5.6) Pharma Products:Oil extracted from medicinal plants and herbs in and around
Behrampore are sent to several part of India where products like scents,
incense sticks are manufactured. Instead of supplying this valuable raw
material Orissa can develop several clusters in and around Behrampore
and other downtrodden areas for manufacture of these items which can
then be exported to other countries.

This will also pave the way of setting up of Bio tech industries
Orissa. R&D on pharma products will boost the way for utilization
intellectual skills in Orissa instead of the intellectuals catering to R &
industries elsewhere. Incentives for setting up of the Biotech and R&
centres should be lucrative enough to attract entrepreneurs to the State.

in
of
D
D

58

12.5.7) Marine Products:The coast line of Orissa provides ample scope for encouragement of
the pisci culture industry. Orissa govt. should encourage setting up of cold
storages along the areas where marine products are based to ensure
dispatch of fresh frozen fish and other products from the port to countries
abroad.

Presently Orissa is exporting Rs. 740 crores worth of Marine

products which is growing @ 13% annually. The Andhra model can be
followed for the benefit of the marine sector exporters. In collaboration with
the sectoral export associations and in consultation with the related
industry bodies, sectoral mid-term strategies will be commissioned to draw
a road map to achieve the sectoral export targets envisaged.

Economic Structure

During the 5 years period 2003-08 all India GDP growth rate
averaged 8.7 per cent per annum. In the subsequent 4 years period 200912 though All India GDP growth are moderated to 7.6 per cent per annum
following the global financial crisis, it can still be considered high. It is
noteworthy that coinciding with this high growth phase, the Odisha
economy witnessed acceleration in its gross state domestic product
(GSDP). In fact, in the earlier period during 2003-08, the average GSDP
growth in Odisha at 11.6 per cent per annum far exceeded the national
average. Subsequently, growth has moderated in Odisha to an annual
average rate of 7.6 per cent, In line with the national level.

59

13.1) Sectoral Composition of Growth

The varying growth trends are reflected in the compositional shift

among sectors in the GSDP : the share of agriculture declined steadily; the
share of industry first rose and then moderated and the share of services
first declined and then rose. In this structural transformation of the Odisha
economy, which is broadly consistent with the tr4end in the national
economy, the rise in the share of industry is noteworthy.

60

13.2) FISCAL POSITION OF ODISHA

There was substantial improvement in state finances as odisha

achieved the targets set out in the Fiscal Responsibility Legislation (FRL)
well ahead of the stipulated time-frame. The revenue account turned
surplus in 2005-06 followed by fiscal surplus in 2006-07. Although the
rascal position of Odisha has shown some deterioration in 2008-0 reflecting
the combined impact of macroeconomic slowdown and sixth pay
commission award, it has since reverted to the path of consoled action.
With refrained from market borrowings. This has had a favorable impact on
state finances as the outstanding liability of the state dropped from 33.8 per
cent of GSDP in March 2008 to 21.1 per cent in March 2012 which is
expected to further go down to 19.6 per cent by March 2013.

61

Table 3 : Fiscal Position of Odisha

(As a per cent to GSDP)
Item

2004-08

2008-12

2012-13

16.9

17.1

16.9

1.1 Own Tax Revenue

5.7

5.7

6.0

1.2 Current Transfers

9.1

9.2

8.9

2.

15.0

15.5

15.9

2.1 Development Revenue Expenditure

7.8

9.9

9.6

2.2 Interest Payment

3.4

1.8

1.7

3.

Capital Outlay

1.8

2.4

2.7

4. Social Expenditure

6.2

8.2

7.8

5. Revenue Deficit

-1.3

-1.9

-0.9

6. Gross Fiscal Deficit

0.4

0.6

1.8

7. Primary Deficit

-3.0

-1.3

0.1

8. Liabilities (End Point)

33.8

21.1

19.6

1.

Revenue Receipts

Revenue Expenditure

Notes : Minus (-) sign indicates surplus.

Source : Budget documents of the State Government.

62

INSTITUTIONAL MECHANISM FOR EXPORT

FACILITATION
14.1) Export Promotion Board of Orisha:
1.

Under the Govt. of India, 29 Export Promotion Councils and

Commodity Boards are engaged in export promotion of products
coming under their jurisdiction. In Orissa, the Directorate of Export
Promotion & Marketing a registered body functioning under the
Directorate of Industries & Commerce is, at present, the Nodal
Agency for promotion of Exports of all products from the State.
D(E.P&M) is regularly conducting Seminars/Workshops/Training
Programmes related to exports, resolving grievances of exporters
etc., and is working in close co-operation with FIEO, ITPO, Export
Promotion Councils/Commodity Boards, Customs and other related
Central & State Govt.

2.

Depts./Organisations to promote exports from the State. It is proposed

to restructure Directorate of Export Promotion & Marketing as Export
Promotion Board of Orissa which shall be the Nodal Agency to guide
and provide assistance to exporters as well as facilitate in obtaining
clearances from regulatory Departments and resolving operational
problems of exporters in Orissa. The following Policy making
empowered Committees if not already existent, are proposed for
functioning to facilitate the process of exports in the State.

3.

The State Level Export Promotion Council(SLEPC) chaired by the

Hon'ble Chief Minister, Govt. of Orissa. The State Level Export
Promotion Committee chaired by the Chief Secretary, Govt. of Orissa.
The following Committee is to function for resolving the operational
problems of exporters. The Export Facilitation Co-ordination
Committee, Central State inter departmental Committee chaired by
the Secretary, Commerce, Govt. of Orissa.
63

4.

In order to promote exports from all districts in the State, District Level
Export Promotion Committee (DLEPC) are proposed for being setup.
The functioning of DLEPCs will be monitored by the Sub-committee of
SLEPC chaired by the Commissioner for Industrial Development and
Director of Industries & Commerce and an authorized representative
of FIEO(if required) which also renders secretarial services to the
Policy making committees.

14.2) EXPORT PROMOTION STRATEGIES:The Dept. of Commerce, Ministry of Commerce & Industry, Govt. of
India have set a target of US$ 160 billion for the exporters in the country
to be achieved by the year 2007, in order to reach 1% share of the world
trade. This Orissa policy should target at achieving an ambitious 10%
share in the country's exports by 2012.

14.3) Following strategies have been formulated to achieve this

target:a)

Exporters in Orissa are mostly concentrated in few districts. All

sections of exporters have their export associations. should closely
and actively co-ordinate with all the export associations and take up
the following measures.

b)

Evolve suitable export oriented strategies focusing on specific product

sectors with inputs from the Export Associations/Exporters. This will
include taking part in international Trade Fairs/Exhibitions, providing
inputs on technology up gradation, packaging, quality, etc.

64

c) Undertake market research on focus countries, markets and sectors and

provide market information to the exporting community.

d) Have a time bound action plan to implement the above strategies and
accelerate export growth.

e) For effective export promotion in the districts, the industries and

traders may be classified into three categories in each district, as
given below:i)

Industries/Traders who are already exporting

ii) Industries/Traders who are exporting through merchant exporters

iii) Industries/Traders who have not yet entered the export field.
Efforts will be made to upgrade industries/traders in categories (ii) &
(iii) to take up direct exports.

f) A District Level Export Promotion Committee (DLEPC) in all the

Districts will be constituted comprising:i)

A senior level officer of the District Industries Centre

ii) A representative of local Chambers/Industry Association

iii) Two prominent exporters from the District
iv) Lead Bank Manager
v) Concerned Department's Officers
vi) Authorized representative from FIEO
vii) Authorized representative from the office of the DGFT, Cuttack.

65

14.4) The DLEPC will draw upon the expertise of Directorate of

Export Promotion & Marketing in export promotion and chalk
out a time bound and effective action plan to:Prepare a comprehensive database on existing exporters in the
District. Identify Industries/Traders who are exporting through other
merchant exporters. Identify the Industries/Traders with potential
products for exports and Resolve local problems of exporting community
Organise various dissemination programmes on export related
information for the exporters in various thrust areas.

14.5) DLEPCs will adopt

accelerate exports:-

following

strategy to

augment

and

1. Identify the bottlenecks/problems faced by the existing exporters and

resolve them. The exports will increase significantly in a short period
with the creation of a suitable export conductive environment.

2. The Industries/Traders who are exporting their products through other

merchant exporters will be trained to export directly by giving them
intensive training in exports, providing regular market information and
other related information on a regular basis from Directorate of Export
Promotion & Marketing. Since their products have already been
accepted in the overseas markets, these Industries/Traders are
expected to become exporters within a short time and help in
increasing exports significantly.

66

3. After the DLEPC has identified the potential exporters in the District,
Directorate of Export Promotion & Marketing will in co-ordination with
local DIC/Chamber/Industry Association counsel and train the
Industries/Traders to export their products. This will be a long term
strategy.
The DLEPC will also submit suitable proposals for
developing export infrastructure in their Districts. The Commissioner
for Industrial development, who is the chairman of the Subcommittee
of SLEPC shall monitor the work of DLEPCs and ensure their
effective functioning.

4. E-Governance for International Trade: Since many Industries/Traders

do not have the wherewithal to take up export activity due to lack of
knowledge on the trade, it is proposed to establish an E-Governance
facility at Directorate of Export Promotion & Marketing and connecting
six major Districts to start with, which would facilitate the existing and
potential exporters in Orissa and these districts to have online
chatting/video
conferencing
with
experts,
concerned
departments/organisations and obtain online updation of latest
notifications, circulars, clarifying doubts/questions related to exports,
generate online trade enquiries etc. at one single place without
travelling.

5. Directorate of Export Promotion & Marketing B2B Exchange To

capitalise on the potential for exporting through the internet, it is
proposed to upgrade the existing Directorate of Export Promotion &
Marketing trade portal to a full fledged B2B exchange, which would
facilitate even the small and tiny unit in the State to take up online
trading activity.

6. By suitable adoption of the above measures and proper coordination of the concerned Depts/Organisations with the exporting

67

community, it is proposed to not only help the existing exporters of

the State to export more, but also motivate new entrants in the field.

14.6) EXPORT INCENTIVIES:Following Schemes for export incentives are to be implemented by the
State:14.6.1) Market Development Assistance (MDA) Scheme:-

The MDA Scheme of the State Govt. shall focus on the small and
medium manufacturing units who wish to enter export field and small
merchant exporters of the State and would be administered by FIEO.
This Scheme would include among others, financial support for visit of
Trade Delegations to other countries, participation in International Trade
Fairs/Exhibitions, Market Survey Reports, Publicity in foreign media etc.
initially an outlay of Rs. 1.00 crore per year will be provided under the
scheme. A consortium model can be followed to recommend MDA to
various small and marginal exporters.

14.6.2) Brand Equity Fund:-

A brand equity fund with an allocation of Rs. 1.00 crore per year will
be set up at Directorate of Export Promotion & Marketing under the
Scheme. This will be aimed at building strong globally competitive
brands for products manufactured/produce originating from Orissa.

14.6.3) Market Research Fund:68

A Market Research Fund with an allocation of Rs. 1.00 crore per year
will be set up at Directorate of Export Promotion & Marketing to activate
a mechanism for providing live and timely market information on
products and markets which will help the SME exporters to enter the
export market directly.
14.6.4) Export awards:-

Directorate of Export Promotion & Marketing on behalf of Govt. of

Orissa to award export awards to top exporters of various categories of
products of the State for their excellence in exports. These awards will
be in those sectors that are focus sectors for the State viz., IT, Food
Processing, Precision Engineering, Electronics & Communications,
Textiles and Machine Tools, Handicrafts and Marine Exports. A one time
corpus fund of Rs. 1.00 crore will be set up for this purpose.

For the purpose of the incentives as per the above orders a unit is
defined as an "Export Oriented Unit" if it exports a minimum of 75% of its
production in any financial year and should be considered for waiver of
electricity duty. Incentives for units set up in Special Economic Zone will
however by governed by the Special Economic Zone Policy.

14.7) EXPORT INFRASTRUCTURE:1.

Creating good infrastructural facilities in potential export centres will

receive utmost priority. Government will encourage participation of
private sector in developing export infrastructure with a time bound
implementation plan on suitable models like BOT, BOOT, BOST etc.

69

2.

In particular the following infrastructure projects will receive attention

DGFT office should be made more pro-active for export data and
reducing transaction costs.

14.7.2.1) Ports/ICD/CFS:At present, there is one major Sea Port, the Paradip Port Trust at
Paradip. The Dhamra port which is being set up is expected to cater to
major exports in Orissa. In addition the Airport at Bhubaneswar may also
be upgraded to cater to handle cargo from Orissa. ICDs may also be set
up at various strategic locations in Orissa.

14.7.2.2) Special Economic Zone:It is also proposed to establish SEZs in other parts of the State based
on need and feasibility studies.

14.7.2.3) Food Parks/ Textiles Parks/Leather Parks:It is also proposed to establish Food Parks/Textiles Parks/Leather
Parks in other parts of the State based on need an d feasibility studies.
This may be set up by inviting private enterprise.
14.7.2.4) Clusters :Clusters for excellence in manufacture of should be encouraged in various
areas in the state:
1. handicrafts at Raghurajpur & Pipli
2. Filligree work at Cuttack
3. Engineering tools, tackles, spares, foundry at Rourkela
4. For tribal arts & crafts at Kalahandi
5. Other centres may be added as and when felt necessary.
70

14.7.2.5) Permanent Exhibition/Trade Centre:A permanent Exhibition Centre at Bhubaneswar, Orissa to be set up
with the assistance of FIEO/IIFT/I & LFS/Local trade bodies i.e. Utkal
Chamber of Commerce, etc.
14.7.2.6) Assistance to States for Developing Export Infrastructure
and other Allied Activities (ASIDE) Scheme:The specific purpose for which the funds allocated under the Scheme
can be sanctioned and utilised are as follows:1. Creation of new Export Promotion Industrial Parks/Zones (including
Special Economic Zones (SEZs)/Agri-Business Zones) and
augmenting facilities in the existing ones. Setting up of electronic and
other related infrastructure in export conclave.

2. Equity participation in infrastructure projects including the setting up

of
SEZs.
Meeting
requiremnets
of
capital
outlay
of
EPIPs/EPZs/SEZs. Development of complementary infrastructure
such as roads connecting the production centres with the ports,
setting up of Inland Container Depots and Container Freight Stations.

3. Establishing power supply through additional transformers and

islanding of export production centres etc. Development of minor
ports and jetties of a particular specification to serve export purpose.
Assistance for setting up common effluent treatment facilities for
which separate guidelines will be issued. Projects of national and
regional importance.

4. Activities permitted as per EDF in relation to North East and Sikkim.

The proposals for the various export infrastructural projects equired
71

to be implemented for acceleration of exports and submitted by the

DLEPC/ other concerned agencies will be scrutinised and cleared by
the State Level Export Promotion Committee (SLEPC) headed by the
Chief Secretary of the State.

14.8)

DEREGULATING BUSINESS ENVIRONMENT:-

Deregulation of business environment is imperative to enable exporters to

operate in the State with ease. With the objective of providing an efficient,
responsive and transparent administrative frame work the following is
envisaged.

14.8.1) Directorate of Export Promotion & Marketing shall be the Nodal

Agency to guide and provide assistance to the exporters as well as
to facilitate clearances from regulatory departments and resolve
operational problems of exporters. FIEO will provide necessary
assistance to the Nodal agency in this respect.

14.8.2) Public Utility Status:The Govt. of Orissa will review existing legislations to assign Public
Utility Status to exporting units who satisfy eligibility criteria as per
relevant statistics.

14.8.3) Green Card:In order to enable exporters having good track record to move their
export/import consignments freely without any hindrance from any of the
Departments, the Govt. shall issue them with green card facility, as per
following criteria.
72

14.9) Exporters in Odisha who are:Manufacturers/Processors or 100% EOUs as defined under

EXIM Policy of Govt. of India or Having Green Channel facility with the
Customs and who qualify as per all the following criteria will be issued
Green Card facility by the Govt. of Orissa. Average Annual Export
Turnover of Rs. 1 crore or more in the last 3 years The dealer should not
have pending cases or tax dues beyond 6 months other than normal
appeals Has not been ever convicted under cases of tax evasion or
fraud Having at least 3 years of existence in business Prompt in
payment of taxes by Self Assessment Prompt in depositing P.F.
amounts.
{SOURCE BY- Federation of Odisha Export Organisations Set up by Ministry of Commerce, Govt. of India)}

CONCLUSION
In the last 50 years, Odisha has lost nearly a decade by way of
natural calamities. This has severely affected the development of the State
and particularly the agriculture sector. Many studies have empirically
proved that agricultural growth is more poverty reducing than growth in
non-agricultural sectors implying that rural poverty reduction has been
associated with growth in agriculture and productivity. A study by Ligon et
al concluded that GDP growth originating in agriculture is at least twice as
effective in reducing poverty as GDP growth originating in other sectors of
economy. Given the incidence of poverty in Odisha which stood at 46.4 per
cent as against the all- India level of 27.5 per cent, the importance of
agriculture growth in the State cannot be understated. Here it will be
important to stress the proactive role that can be played by existing
institutional arrangements like SLBC for continuous evaluation and
monitoring of the developments in the sector in a holistic manner.

73

15.1) Inadequate Agriculture Financial Banking Network

As at end-June 2012, there were 46 scheduled commercial banks
operating in Odisha including 25 public sector banks, 14 private sector
banks, five regional rural banks (RRBs) and two foreign banks. The total
number of branches of scheduled commercial banks (excluding RRBs) in
the State was 2,136 at end-June 2012. The population group-wise
distribution of these branches indicates that rural branches accounted for
45.5 per cent of the total number of branches in the State, as against their
share of 29.2 per cent at the all- India level .
15.2) Major problems:15.2.1) Low Level of Crop Diversity:The crop diversity is very minimal in the State though some efforts have
been initiated in some parts of the State. Some farmers are adopting
floriculture, onion, turmeric and mushroom cultivation as a diversification
away from traditional crops.
Government of India Scheme for supporting Agricultural Marketing
Infrastructure. As on date there are only around 300 rural god
owns/storages set up under this scheme in Odisha with limited storage
capacity with no accreditations (only one storage of Central Warehousing
Corporation in Rayagada is having accreditation in the whole State of
Odisha).

15.2.2) Low Level of Irrigation:The extent of usage of fertilizers, rainfall, per cent gross cropped area
irrigated and size of operational holding have a positive bearing on the yield
of crops. Compared with all India averages, progress in extending areas
under irrigation in the State has been faster. During 1999-2000, 29.5 per
cent of areas under all crops in the State were irrigated which increased to
35.0 per cent by 2008-09. The respective all-India levels were, however,
74

much higher at 40.8 per cent and 45.3 per cent. As regard irrigated area for
rice production increased from 40.7 per cent to 46.8 per cent during this
period as against 53.9 per cent to 58.7 per cent at all-India level.
15.2.3) Low Usage of Fertilizers:Fertiliser consumption in the State, in terms of kilogram per hectare
during 2008-09 was very low 61.6 kg as against 128.6 kgs at all-India level.
Odishas per hectare consumption of fertiliser is less than 50 percent of all
India consumption.

15.3) Government Role:Measures adopted by the Government to improve the lot of

agricultural. It is a matter of great pleasure that today Government is doing
its best to help the Odisha farmer. Position is now improved on Odisha and
also buying better agricultural implements, good seeds and fertilizers. The
Old out dated plough is now being replaced by the tractor.
Distribution of surplus land, consolidation of land holdings,
implementation of ceiling laws and other land reforms have brought about a
change in the status of Odisha farmer. Welfare measures like spread of
education, electrification and supply of water, building of roads, schools
and hospitals have raised the standard of living of the farmer. Now they
lives in the pucca houses and puts on better clothes. They looks very
cheerful. If our farmers and we should co-operate our government, the
conditions of the Odishas agriculture will improve in the future.

75