The Agricultural and Processed Food Products Export Development Authority (APEDA) has asked States to promote contract farming to address a serious structural challenge Indian agriculture sector faces.

“Contract farming is happening in many shapes in different parts of the country. Because of small holdings, farmers are not able to invest and see surplus produce,” Mr Asit Tripathy, Chairman of APEDA, said.

Delivering the keynote address at a conference on ‘Agro exports from Andhra Pradesh – present emerging scenario' here on Wednesday, he said most of agri exports were happening because of contract farming.

The conference was jointly organised by APEDA and Confederation of Indian Industry.

Stating that the country was yet to tap the full export potential for agricultural produce, he said half of the $8.5 billion worth exports went just to the Gulf. “We are yet to fully tap the Gulf market itself. What we are addressing is the demands from expatriate Indians,” he said.

Think beyond Gulf

“We need to think of exports to the other South-East Asian countries, and not only focus on the Gulf. Andhra Pradesh being on the East Coast could play a vital role in this,” he said.

The moves to invite FDI in multi-brand retail would also help the agriculture sector. The MNCs would prefer to source directly from the producer instead of going to mandis .

“There is immense scope for enhancing agri production from Andhra Pradesh as it has a good base of both enterprise and infrastructure. Agriculture enterprise has a potential source of making money”, he said.

Ms Shailaja Ramaiyer, Vice-Chairman and Managing Director of AP AGROS (an AP Government agency), asked APEDA to set up a dedicated agency in States to coordinate with different Government Departments to promote exports.

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