AN ANALYSIS OF INDIA’S AGRO EXPORTS TO THE EUROPEAN UNION IN 2007

The European Union Market

The European Union is perhaps the world’s biggest single market. The Union brings together 500 million citizens and four of the world’s seven largest economies. Two thirds of total EU imports come from developing countries. EU has always been a net importer of commodities and intermediate products. The EU is India’s largest trading partner accounting for about 20% of India’s global trade. In the year 2007, India exported the goods worth euro 29.4 billion to EU and imported the goods worth euro 26.2 billion.

Agriculture Import by EU

The total agriculture import of EU was to the tune of Euro 91.02 billion in the year 2007. The main importing countries were The Netherlands (16.48%), Germany (14.68%), U.K. (14.56%), Spain (11.29) and Italy (9.09%). The major items imported by EU were Soy meal & Soybeans, Coffee, Bananas and Wine.

Brazil remains the main supplier (since 2003), with a share of 13.39% in EU agriculture imports, followed by USA (8.25%) and Argentina (7.17%). The Asian giant China (4.76%) is fast catching up and is at 4th place. India was at 12th place with 2.3% market share. The other Asian countries viz. Thailand (2.37%) and Indonesia (2.36%) were at 9th and 10th place respectively. The following table shows the ranks of the 12 top countries with their share in the EU market in the year 2006 and 2007.

‘000’ euros

 

2006

2007

 

Countries

Import by EU

% share

Countries

Import by EU

% share

 

Extra EU

81349130

100.0

Extra - EU

91023764

100

1.

Brazil

9260629

11.4

Brazil

12186810

13.4

2.

USA

6843208

8.4

USA

7505114

8.2

3.

Argentina

5463130

6.7

Argentina

6528530

7.2

4.

China

3671699

4.5

China

4328639

4.8

5.

Norway

3141489

3.9

Norway

3232873

3.6

6.

Turkey

3103327

3.8

Turkey

3223843

3.5

7.

Chile

2116463

2.6

Switzerland

2494263

2.7

8.

Switzerland

2090539

2.6

Chile

2266846

2.5

9.

New Zealand

2013011

2.5

Thailand

2154122

2.4

10.

Indonesia

1937101

2.4

Indonesia

2151143

2.4

11.

South Africa

1840850

2.3

South Africa

2074006

2.3

12.

India

1820109

2.2

India

2055832

2.3

It is observed that Brazil, Argentina, China, Chile, Switzerland and India have increased their market share in the year 2007. Countries viz. USA, Norway and Turkey though increased their volume of exports to EU, could not keep pace with the size of increase in the EU import in the year 2007 over 2006 and hence got lesser share. However, New Zealand could not repeat its performance of 2006 and hence it could not find a place in the major 12.

Major Importing Countries in the EU

The 10 major importing EU countries are as follows:

 

2006

2007

 

Countries

Import

% share

Import

% share

Growth

 

Extra EU

81349130

100%

91023764

100%

11.89

1.

Netherlands

12930594

15.9

15006432

16.5

+16.05

2.

Germany

12250173

15.1

13363181

14.7

+9.09

3.

U.K.

12642316

15.5

13245043

14.6

+4.77

4.

Spain

8820747

10.8

10278424

11.3

+16.53

5.

Italy

7753143

9.5

8275518

9.1

+6.74

6.

France

7102589

8.7

7809600

8.6

+9.95

7.

Belgium

5580247

6.9

6183930

6.8

+10.82

8.

Denmark

2969962

3.7

3139999

3.4

+5.73

9.

Sweden

2561102

3.1

2783744

3.1

+8.69

10.

Poland

1574801

1.9

1770493

2.0

+12.43

The Extra-EU import witnessed a growth of 11.89% in the year 2007. From the above analysis, we can ascertain that in the year 2006, there was not much difference in the top three importers, whereas in the year 2007, The Netherlands has seen 16.05% growth which is higher than the EU average compared to lower growth of 9.09% and 4.77% by Germany and U.K. respectively. Spain, Belgium and Poland have also seen significant growth in import. Germany took the no. 2 position in 2007 from U.K, who has seen a meager growth in imports. The top four countries (Netherlands, Germany U. K. and Spain) imported more than 57% of agriculture products.

India’s Agriculture Trade with EU

India’s agriculture exports to EU have a share of only 7% of its merchandise exports. India was on 12th position with a share of 2.26%. India’s exports to the EU were to the tune of 2.05 billion euros in 2007 comparing to 1.82 billion euros in the year 2006. India’s main markets were U. K (20.27%), The Netherlands (13.31%), Germany (12.87%), France (11.30%) and Spain (11.11%). India’s agriculture exports to the East European countries viz. Bulgaria, Romania, Slovakia, Hungary, Czech Republic, Latvia and Lithuania were considerably low. The following chart depicts India’s exports to EU as product Groups wise at 2 digit level.

India’s Exports to EU
10 Major Group Head Products (Total Exports 2055832 euros)
Graph

It is observed that the Product Group Fish and Crustaceans, Molluscs and Other Aquatic Invertebrates is at no. 1 position having 23% share followed by Coffee, Tea, Mate and Spices (15%), Edible fruit and nuts (10%), Cereals (9%), Animal or Vegetable Fats (6%) and Sugar and Sugar Confectionery (5%). These 10 major product groups constitute 84% of India’s exports to the European Union.

Recent Developments in the EU Market

Two important developments have taken in the EU agriculture trade in the last five years for EU agricultural trade. Firstly, the EU overtook the US as the leading agricultural exporter since 2003. The second development is even more recent and indicates that the EU’s agricultural trade balance has improved significantly with export growth outstripping that of imports, so that by 2006 it had turned into a net exporter of agricultural products. The improvement for the EU is all the more surprising as it comes despite the strengthening of the euro and despite enlargement, which increased net agricultural imports. However, in 2007, it again became the net importer with an import of Euro 77.4 billion and export of Euro 75.1 billion.

EU 25 Agricultural Trade (2000-2006) in billion US$

 

2000

2001

2002

2003

2004

2005

2006

Exports

58.3

58.7

63.4

75.2

77.4

79.5

90.7

Imports

58.8

60.5

64.2

75.5

79.6

79.5

84.7

Balance

-0.5

-1.8

-0.8

-0.3

-2.2

0.1

6.0

Product Wise Analysis

The analysis which has been done in this report gives a detailed review of each item exported by India to the EU in the agriculture sector. The groups of items covered in this report are as follows:

A) Marine Products
B) Floriculture Products
C) Fruits and Vegetables
D) Processed Fruits and Vegs
E) Animal Products
F) Vegetable Plaiting Materials
G) Morels and Nuts
H) Guar Gum, Manioc, Sugar and Molasses
I) Medicinal Plants and their Extracts
J) Cereals and Cereal Products
K) Coffee, Tea and their Extracts
L) Spices, Seasonings and Oleoresins
M) Oil seeds and their extractions
N) Shellac
O) Tobacco
P) Caster Oil and Vegetable Fats and their Derivatives.

The statements show India’s comparative export performance during the last five years (2003 – 2007) and also list up the major competitors and their share in the market. The comparisons have been given in terms of quantity, value, unit value and percentage share of EU vis-à-vis India. Seven major exporters have been listed for last two years to show their rank and wherever India do not find any place in major seven, its position has been kept at seventh place to show its rank. Major exporters have been listed with their market share in the EU. Salient trends have also been provided for each item.

The report covers more than 95% of agricultural products exported to the EU in terms of value. The remaining 5% of the items are of little export interest. The items covered in this report are listed in the order of their code numbers as they appear in the Combined Nomenclature (CN) list (4, 6, 8 digit levels) and have been grouped according to product sectors for the sake of convenience and overall understanding of the export performance. The Combined Nomenclature forms the basis for the declaration of goods (a) at importation or exportation or (b) when subject to intra-Community trade statistics. This determines which rate of customs duty applies and how the goods are treated for statistical purposes.

Comparison of Some Major Product Groups

Value: million euros

 

2006

2007

Growth
(2006 over 2007)

 

Extra EU

India

% share

Extra EU

India

% share

Extra-EU

India

APEDA Products (incl. cereals, sugar)

54375

638

1.17

61803

814

1.31

+13.6

+27.6

Marine

13150

450

3.4

13298

470

3.5

+1.1%

+4.4%

Cashew

281

156

55.4

288

126

43.8

+2.4%

- 29%

Tea

514

93

18.0

474

82

17.2

- 7.8%

- 12%

Coffee

4316

159

3.7

4816

161

3.3

+ 11.5%

1.2%

Spices

1015

96

9.4

1054

120

11.3

3.8%

+25%

Tobacco

1682

66

3.9

1807

72

4.0

7.4%

+9.9%

Shellac

40

11

27.5

40

10

25

-

- 10%

Other agri. Products (vegetable plaiting material, oil seeds, castor oil, etc.

5976

151

2.5

7443

200

2.6

24.5%

+ 32.4%

TOTAL

81349

1820

2.23

91023

2055

2.25

+11.8

+12.9

Overall, the size of EU market reflected a growth of 11.8% over the previous year. The agriculture export of India has also grown by 12.9% over the previous year. It may be observed that APEDA products have maximum share (39.6%) in Indian agriculture products. The annual growth of APEDA products is also very high at 27.6%. Since the size of the EU market is very high in terms of volume of these products, they have maximum potential for export. Our traditional export products like Cashew and Tea are experiencing negative growth. Spices, marine products and tobacco have seen a growth of 25%, 4% and 9.9% respectively in the year 2007 over the previous year. There has been maximum growth for other agriculture products (especially castor oil) which has shown an impressive 32.4% growth over the previous year. Shellac has seen a negative growth but that doesn’t affect much as it has a very small and static market base in the EU.

The major products in which India has got higher rankings in terms of its presence amongst the first five in the year 2006 and 2007 were as follows:

India’s Rank

2006

2007

No. 1

Cuttle fish, fruits and nuts, husked rice, guar gum, shellac, caster oil, Bird’s eggs, other oilseeds human hair, horns and hooves 

Cuttle fish, Parts of plants for bouquets, husked rice, fruits and nuts, molasses, guar gum, caster oil, other oilseeds, shellac, birds eggs, human hair, horns and hooves, walnuts

No. 2

Parts of plants for bouquets, gherkins, tea, cardamom, vegetable seeds, ginger, saffron, turmeric, essential oils

Shrimps, preserved vegetables, gherkins, milled rice, vegetable seeds, tea, cardamom, ginger, saffron, turmeric, essential oils,

No. 3

Shrimps, fruits and nuts, vegetable plaiting material, milled rice, vegetable fats,

Preserved mushrooms, vegetable plaiting material, vegetable fats

No. 4

Dried and preserved vegetables, plant parts, pepper

Fruits and nuts, plant parts, vegetable saps, pepper

No. 5

Grapes, molasses, vegetable saps, tobacco

Dried vegetables, cereal preparations

The following table gives a comparison of India’s ranking in the year 2007 and 2006 with respect to following products. The figures in `Green colour’ depicts improvement in India’s ranking; figures in `Blue colour’ depicts no change in the ranking and figures in `Red colour’ depicts decline in the India’s ranking:

PRODUCT DESCRIPTION

Position In 2007 (Position In 2006)

A.  MARINE PRODUCTS

 

Frozen Shrimps and Prawns

2nd (3rd)

Frozen Crabs

7th (7th)

Frozen Crustaceans (Excl. Crawfish, Lobsters, Shrimps, Prawns & Crabs

6th (7th)

Cuttle Fish “Sepia Officinalis, Rossia Macrosoma, Sepiola Spp. “ and Squid “Ommastrephes Spp., Loligo Spp., Nototodarus Sepioteuthis Spp.”, Frozen, Dried, Salted or in Brine

1st (1st)

Shrimps and Prawns, Prepared or Preserved

7th (7th)

Aquatic Invertebrates, (Excl. Crustaceans) Prepared or Preserved

7th (7th)

B.  FLORICULTURE PRODUCTS

 

Bulbs, Tubers, Tuberous Roots, Corms, Crowns and Rhizomes, Dormant

7th (7th)

Dried Dyed, Bleached Impregnated or Otherwise Prepared Cut Flowers and Buds, for Bouquets or for Ornamental Purposes

2nd (1st)

Parts of Plants and Trees, Grasses Prepared for Bouquets or Ornamental Purposes

1st (2nd)

C.  FRUITS AND VEGETABLES  

Fresh or Chilled Onions and Shallots

 7th (7th)

Fresh Chilled Fruits of The Genus Capsicum or Pimenta

7th (7th)

Fresh or Chilled Vegetables (Excl. O70910 To 070970)

7th (7th)

Vegetables (Uncooked or Cooked by Steaming or Boiling in Water), Frozen

7th (7th)

Dried Vegetables, Whole, Cut, Sliced, Broken or in Powder But Not Further Prepared (Excl. 071230)

5th (4th)

Dried Leguminous Vegetables, Shelled, Whether or Not Skinned or Split

7th (7th)

Fresh or Dried Mangoes and Mangosteens

7th (7th)

Fresh Grapes

6th (5th)

Other Fresh Fruits (Excl.O81010 & 081040)

7th (7th)

D. PROCESSED FRUITS AND VEGETABLES

 

Vegetables Provisionally Preserved (E.G. By Sulphur Dioxide Gas/Brine/Sulphur Water) Not for Immediate Consumption

2nd (2nd)

Fruits and Nuts (Excl. Cherries and Strawberries), Provisionally Preserved, But Unsuitable in that State for Immediate Consumption

4th (3rd)

 Cucumbers and Gherkins, Prepared or Preserved by Vinegar or Acetic Acid

2nd (2nd)

Vegetables, Fruit, Nuts and Other Edible Parts of Plants (Excl. Cucumbers, Gherkins and Onions), Prepared or Preserved by Vinegar or Acetic Acid

4th (4th)

Mushrooms Prepared or Preserved Otherwise Than By Vinegar or Acetic Acid.

3rd (6th)

Jams, Jellies, Marmalades, Purees or Pastes of Fruit (Excl. 200710 and 200791), Obtained by Cooking

7th (7th)

Fruit, Nuts and Other Edible Part of Plants (Excl. 200811 to 200892)

1st (1st)

Juice of Fruit or Vegetables (Excl. 200911 to 200970), (Excl. Fermented or Containing Alcohol)

7th (7th)

E.  ANIMAL PRODUCTS

 

Bird’s Eggs, Not in Shell, and Egg Yolks, Fresh, Dried Cooked By Steaming or by Boiling In Water, Moulded Frozen or Otherwise Preserved Whether or Not Containing Added Sugar

1st(1st)

Human Hair, Unworked Whether or Not Washed or Scoured; Waste or Human Hair

1st (1st)

Guts, Bladders and Stomachs or Animal Other than Fish, Whole and Pieces Thereof (Animal Casings)

7th (7th)

Bones and Horn Cores, Unworked/Defatted/Simply Prepared (Uncut To Shape) Treated; Powder & Waste

1st (1st)

Ivory/Tortoise-Shell/Whalebone & Hair/Horns/Antlers/Hooves/Nails/Claws & Beaks, Unworked & Powder

1st (1st)

Gelatin & Derivatives; Glues of Animal Origin, Excl. Casein Glues of Heading No. 3501.

6th (10th)

F.  VEGETABLE PLAITING MATERIALS

 

Vegetable Products (For Dyeing Or Tanning Cotton Liners) Not Elsewhere Specified

3rd (3rd)

G.  MORELS AND NUTS

 

Cashew Nut

1st (1st)

Fresh Or Dried Walnuts, Shelled

2nd (6th)

H.  GUAR GUM, MANIOC, SUGAR AND MOLASSES

 

Manioc/Arrow/Root/Sallep/Jerusalem Artichokes/Sweet Potatoes & Roots, Fresh/Dried, Slices, Sage Pith

11th (14th)

Mucilages and Thickeners Derived from Locust Beans (Guar Gum)

1st (1st)

Mucilages and Thickeners Derived From Vegetables Products, Whether or Not Modified (Excl. From Locust Beans, Locust Beans Seeds, Guar Seeds and Agar-Agar)

6th (7th)

Cane Or Beet Sugar and Chemically Purse Sucrose in Solid Form for Refining Or Other Purposes

15th (19th)

Molasses Resulting from the Extraction or Refining Of Sugar

1st (5th)

I.  MEDICINAL PLANTS AND OTHER EXTRACTS

 

Plant and Parts of Plants Incl. Seeds and Fruits, of a Kind Used Primarily in Perfumery, Medicaments or for Insecticidal, Fungicidal or Similar Purposes, Fresh or Dried Whether or Not Cut, Crushed or Powdered.

4th (4th)

Vegetables Saps Extracts (Excl. Liquorice, Hops, Pyrethrum, Roots of Plants Containing Rotenone and Opium)

4th (5th)

J.  CEREALS AND CEREAL PRODUCTS

 

Husked Rice

1st (1st)

Semi Milled or Wholly Milled Rice

2nd (3rd)

 

 

Food Preparations of Flour, Meal, Starch, or Malt Extract, (Not Containing Cocoa Powder) or Containing Cocoa Powder) in a Proportion <50% N. E.S.

5th (10th)

K.  COFFEE, TEA AND OTHER EXTRACTS 

 

Coffee, Roasted or Not, or Decaffeinated, Coffee Husks/Skins/Coffee Substitutes With Coffee

7th (6th)

Tea

2nd (2nd)

Extracts, Essences and Concentrates Of Coffee and Preparations With a basis of These Extracts, Essences or Concentrates

6th (6th)

 Extracts, Essences and Concentrates of Tea or Mate and Preparations With these Extracts, Essences, Concentrates, or With a basis of Tea or Mate

 

3rd (4th)

I.  SPICES, SEASONINGS AND OLEORESINS

 

Pepper of Piper Genus; Dried/Crushed Ground Fruits of Capsicum Genus or of Pimenta Genus

4th (4th)

Cardamoms

2nd (2nd)

Seeds of Anise, Badian, Fennel, Coriander Cumin or Caraway, Juniper Berries

1st (2nd)

Ginger, Saffron, Turmeric curcuma, Bay Leaves, Other Spices, Curry Powder and other Mixtures of Spices

2nd (2nd)

Preparations For Sauces and Prepared Sauces (Excl. 210310 To 210330); Mixed Condiments and Seasonings

11th (14th)

Essential Oils (Terpeneless or Not); Resinoids Aqueous Distillates & Solutions of Essential Oils

2nd (2nd)

M.  OIL SEEDS AND THEIR EXTRACTIONS

 

Other Oil Seeds & Oleaginous Fruits, Whether or Not Broken (Incl. Sesame Seeds and Castor Seeds)

1st (1st)

Oil Cake & Other Solid Residues, Whether or Not Ground or In Pellets, Resulting From Extraction of Soybean Oil

10th (15th)

Oil Cake & Other Solid Residues, Whether or Not Ground or In Pellets, Resulting From Extractions of Vegetable Fats/Oils (Excl From Soya Bean Oil or Groundnut Oil)

7th (12th)

N.  SHELLAC AND GUMS

 

Natural Lac

1st (1st)

Natural Gums, Resins, Gum Resins and Balsams

1st (2nd )

O. TOBACCO

 

Unmanufactured Tobacco, Tobacco Refuse

5th (6th)

P. CASTOR OIL AND VEGETABLE FATS AND THEIR DERIVATIVES

 

Castor Oil and its Fractions

1st (1st)

Vegetable Fats and Oils and their Fractions

3rd (3rd)

Castor Oil Derivatives

11th (14th)

Major Issues of Non Tariff Nature

(i) Issues relating to pesticide residues : The maximum residue levels (MRLs) of pesticides and other contaminants are largely based on technology development and not based on actual risk assessment.  The level of protection goes beyond the ALOP (Appropriate Level Of Protection) enshrined in the SPS Agreement.  Further, there is no harmonization of MRLs across all countries of a customs union.  This issue needs intervention.

(ii) Delays in equivalence : Most developed countries take many years to reach a decision on equivalence on standards and processes with exporting countries.  For instance, USA took 3 years on organic standards, Japan took 20 years for market access on mangoes, EU has already taken more than 9 years to agree on equivalence in case of egg products, Australia too has already taken more than 7 years to give market access for mangoes, and yet we do not foresee it coming in the near future.

(iii) Lack of harmonization with Codex :  Although, the reference point for standards is Codex, most developed countries establish stricter standards as is allowed under the SPS Agreement.  The true purpose of establishing Codex standards is not achieved by the developing countries.  Moreover, even though, the Codex provides for a Special and Differential Treatment for developing countries, it remains only on paper.

(iv) Capacity building issue : The SPS Agreement provides for ensuring capacity building programmes for developing countries.  Under this, only seminars and conferences are organized.  When it comes to organizing specific training programmes, either it takes a long time to organize it, or it is too little. 

(v) Impractical approaches to product testing : Taking the example of aflatoxin in spices, processed food, groundnuts, cereals, etc., there is a requirement of meeting a certain MRL value of aflatoxin in these products. The sampling procedure for testing is extremely complex and expensive. In short, it is technically and economically not feasible for developing countries.  Moreover, it is expected that the MRL should be respected on arrival of the consignment at the port of the importing countries (e.g. EU ports).  This is impractical because aflatoxins can come up at any stage after drawl of samples for testing.  The voyage provides an optimum environment for growth of aflatoxins.  No exporting countries can absolutely guarantee this, not even the most developed countries. 

(vi) Unreasonable clearance procedure : Certain developed countries like the EU destroy processed food consignments at their ports if the risk to human health is high.  This is unreasonable.  The exporting countries must have the first right to the rejected consignment and should have the option to either take it back to their country or to ship it to another country where it is acceptable according to its laws.  EU laws do not apply to other countries.  The unreasonable procedure needs a change. 

(vii) Traceability : This is a concept that has just been defined by the Codex and its application is still to be established.  However, countries like the EU have already started demanding traceability in all products right from the farm to the consumer.  This is technically and economically not feasible in many developing countries.  India’s view is that traceability may be considered only as a risk management tool and only if no other feasible option to control that risk is available.  Moreover, it should not be applicable on raw produce and should not be used as a barrier to trade. 

(viii) Environment and Labour issues : The SPS Agreement, through the Codex, allows formulation of standards and practices for ensuring food safety and fair trade practices.  In the name of fair trade, most developed countries are expecting compliance with their environment and labour requirements.  This is an issue, which has been under discussion at other fora, but when it comes to Codex discussions, it is difficult to oppose. 

 

The analysis is based on Eurostat data made available to APEDA through the courtesy of our Mission in Brussels.

 

Recommendations:

  • There are some products which enjoy a commanding position in the EU markets viz. spices, tobacco, castor oil, guar gum, molasses, basmati rice, shellac etc.  India is not likely to face any tough competition in these markets in the near future but a little value addition in these products could fetch India handsome foreign currency.
  • There are markets where India has lot of potential but the product quality, variety, volume, transportation, infrastructure are not adequately developed.   A majority of APEDA products falls in this category viz. all fruits and vegetables, ethnic and ready to eat food, floriculture.   APEDA monitor the exports of more than 400 agriculture products for which there is vast untapped market in the European Union.    These products are registering export growth higher than any other agriculture product in the EU and should be developed and promoted more vigorously so as to establish their sustainability in the EU market.    
  • Then there are some traditional items like tea, coffee and cashew, which are not keeping pace with the import growth of EU.  India has to revitalize the product and market in terms of applying workable measures to boost exports.  A fresh approach to the development and promotion programmes and value addition especially in packaging and branding of these products could make a lot of difference.
  • India faces some TBT and SPS barriers while exporting agro products to EU.  These issues need to be taken up in the bilateral trade talks held on different occasions.  Recently, the Third Meeting of India-EU SPS/TBT Joint Working Group was held in New Delhi.   The Indian Government deliberated on some important issues viz. delay in clearance of consignment of flowers, stringent buffalo meat standards, different MRLs for pesticides, drugs, shelf life of edible foods, restrictions applied to poultry and pig products, etc.  The need is to continue such dialogue at different fora till access to EU market is achieved for specific products.
  • India will have to negotiate the tariff lines through the FTAs which were launched in June 2007 and aim to increase market access for goods, services and investment by tackling not only tariff barriers to trade but also non-tariff barriers and rules on intellectual property rights, competition, public procurement and transparency.
  • The EU integrated approach to food safety, through adoption of Rapid Alert System for Food and Feed (RASFF), aims to assure a high level of food safety, animal health, animal welfare and plant health  through coherent farm-to-table measures and adequate monitoring.  EU has imposed certain regulations and standards for import of agriculture products which should be adhered to.  For this, India needs to have effective implementation of various agricultural practices relating to development of quality, e.g. HACCP, GAP, GMP, GLP, GHP, etc.  Further, in order to increase credibility of Indian agricultural products in the EU market, we need to develop strong web based traceability system for various products on the similar lines of GrapeNet Traceability System.
  • There are a number of issues and concerns in the context of harnessing the potential benefits of Geographical Indication (GI) registration in India (e.g. basmati rice, Darjeeling Tea, etc.).  Apart from effective enforcement of GI in the EU markets, it is apprehended that without well-crafted policies and strategies on marketing and promotion of Indian GI, their underlying commercial potential might remain unrealised.
  • Organic farm produce enjoys a good demand in European Union (EU) market and India has an opportunity to export its organic produce to this market.  The demand for organic products has risen because the EU consumer has become more health conscious and greater environmental awareness. The demand for organic food in the EU has now penetrated even to the rural areas.  Though, separate data related to export of organic are not available from Eurostat, it is suggested to develop a web-based traceability system in order to have authentic data of export of organic products