HLEG on agricultural exports submits report on performance incentives
by Nidhi Bhati
The 15th Finance Commission has set up a high-level experts group (HLEG) on agricultural exports to recommend measurable performance incentives for states to encourage agricultural exports and to promote crops to enable high import substitution. The HLEG in its report suggested to focus on 22 crop value chains, creation of a state-led export plan with the private sector playing an anchor role and the Centre acting as an enabler. The group also suggested robust institutional mechanism to fund and support implementation. The HLEG believes that agricultural export has the potential to grow to USD 70 billion from USD 40 billion in a few years. The estimated investment in agricultural export could be in the tune to USD 8-10 billion across inputs, infrastructure, processing and demand enablers. Additional exports are likely to create an estimated 7-10 million jobs and will lead to higher farm productivity and farmer income.