Uttar Pradesh is emerging as a key agri-export hub with new facilities aimed at empowering farmers. The state has introduced processing units, cold chains, and export zones to boost agricultural trade. These initiatives, supported by government subsidies, target crops like basmati rice and mangoes, aiming to enhance farmer incomes and global market reach.
Uttar Pradesh Strengthens Agricultural Exports with New Infrastructure
Uttar Pradesh, India’s agrarian powerhouse, is taking significant strides to position itself as a global agri-export hub through a series of new facilities designed to support farmers and enhance export capabilities. The state government, in collaboration with the Agricultural and Processed Food Products Export Development Authority (APEDA), has rolled out initiatives to bolster the agricultural supply chain, focusing on processing, storage, and export infrastructure.
The state has established 15 agro and food processing parks, including key locations in Varanasi, Barabanki, Saharanpur, Gorakhpur, and Chitrakoot. These parks integrate processing, preservation, packaging, and warehousing facilities to minimize post-harvest losses and ensure export-quality produce. For instance, the Mega Food Park at Baheri and Agro Park at Barabanki are equipped with modern technology to process high-value crops like mangoes, turmeric, and aonla, which are in demand globally. These facilities are part of a broader strategy to leverage Uttar Pradesh’s abundant agro-resources, including its position as the largest producer of milk, grain, sugarcane, mangoes, and Indian gooseberries.
To further support farmers, the state offers financial incentives, including assistance capped at 50% of the project cost or Rs. 50 lakh for self-help groups (SHGs), farmer-producer organizations (FPOs), and individual farmers to set up decentralized processing and storage units. A 25% freight subsidy on exports (excluding Nepal, Bangladesh, and Bhutan) has also been introduced to reduce transportation costs, making UP’s agricultural products more competitive in markets like South Africa, the USA, Australia, and Canada.
Uttar Pradesh’s basmati rice, particularly the GI-tagged Kalanamak variety, is a focal point of these efforts. In 2021-22, the state exported basmati rice worth $0.05 billion, contributing to India’s $3.5 billion basmati export market, which is projected to grow at a 6% CAGR. The state’s four Agriculture Export Zones and 1,909 cold chains facilitate the export of perishable goods like fruits and vegetables, ensuring quality compliance with international standards. The government’s push for organic and processed food exports aligns with global demand, with investments in mango processing, turmeric, and cereal manufacturing showing promising potential.
The state’s 35 FPOs and premier institutes like Kanpur University and the Indian Veterinary Institute in Bareilly provide technical support to farmers, enhancing productivity and export readiness. Virtual buyer-seller meets (V-BSMs) organized by APEDA with countries like Kuwait, Indonesia, and the USA have promoted UP’s GI-tagged products, further expanding market access. The state’s focus on millets, spurred by India’s 2023 International Year of Millets campaign, aims to capitalize on the global demand for climate-resilient crops.
Despite these advancements, challenges remain. Stringent sanitary and phytosanitary (SPS) measures imposed by developed nations, such as pesticide bans on basmati rice in Europe, pose barriers. Frequent export restrictions, like the Minimum Export Price (MEP) of $1,200 for basmati rice, have led to reduced farmer incomes and hesitancy among traders. To address this, experts suggest streamlining trade policies and establishing market intelligence units to provide real-time data on global demand, helping farmers align with international standards.
The state’s efforts are part of India’s broader Agriculture Export Policy (AEP) of 2018, which aims to achieve $100 billion in agricultural exports over the next decade. Uttar Pradesh’s initiatives are expected to contribute significantly, with the potential to create 7-10 million jobs in agriculture and allied industries, according to estimates from the High-Level Expert Group (HLEG). By investing in infrastructure and supporting landlocked regions, UP is paving the way for farmers to access global markets while ensuring sustainable agricultural growth.
Disclaimer: This article is based on recent reports, government announcements, and data from sources like APEDA, Invest UP, and news outlets such as The Economic Times and Business Standard. Information is subject to change as new developments occur.