India enjoys an excellent economic relationship with Netherlands, and both countries are trying to increase bilateral trade. Netherlands is known for adopting technology in agriculture and has taken the lead in using robots in dairy farms and allied farming activities. Dutch firms are now seeking to market not only their produce but also their expertise to foreign farmers. Accompanying Dutch Prime Minister Mark Rutte and a trade delegation from 80 different businesses, Sharon Dijksma, Minister for Agriculture of the Netherlands, took time out of her busy schedule to speak to BusinessLine on the opportunities for both countries. Edited excerpts:
How do you see the progress in relations between the two countries?
Both the Indian and Dutch Governments have been working together for a few years now, particularly in the area of agriculture. What we see really is Prime Minister (Narendra) Modi putting issues relating to agriculture into the heart of his policy. We could imagine that of course half of India’s population depends on agriculture for income. We will have more mouths to feed in coming decades. In order to do so, we have to not only double our food production but also halve our use of natural resources such as water and energy. This is where the Dutch technology comes in. We call this phenomenon to increase crop yield with use of less water, fertiliser and pesticide as Sustainable Climate Smart Agriculture. We have a long-standing tradition of facing challenges with small arable land closer to the sea. We use information technology to ascertain the need of pesticide and fertiliser in an ideal situation. The lower use of input improves farmers’ earnings and doubles production.
We also have better technology to create better seeds. Dutch companies are the second largest exporters of horticulture products worldwide. We lead the table in seeds and breeding material used in horticulture. We have developed a Seed Valley just like the US has a Silicon Valley. We intend to share our expertise in technology and tackling crisis in the farming sector with the Indian farmers.
How you are taking this forward?
We have an agreement with the Indian government to share our knowledge in the farming sector. We have set up two centres of excellence at Baramati and Talegaon in Maharashtra. Another two centres will come up in Punjab and one in Assam by end of this year. Our aim is to set up 10 such centres by 2018 and to train 40,000 farmers at each centre. In our terms it is a huge amount of people. These centres handhold farmers to use Dutch technology in dairy, animal husbandry, horticulture and growing vegetables. It will improve their yield and lower cost. We have adopted the concept of train the trainer so that it becomes a sustainable practice. The Indian government has promised to open the markets for apples and pears from the Netherlands by September. On the other hand, we will work with the European Commission to lift the ban on Indian snakegourds and bittergourds. I’m really convinced that India is following the right regulation. The ban on Indian grapes and mangoes was lifted recently. I think issues relating to market access are also of highest importance for both of our countries.
What are the trade challenges you face in India?
It is really important to have a stable policy as Dutch companies are looking for long-term investment. I know the government is working on it. While I believe in the Government’s Make in India initiative, I would like it to also focus on – ‘Trade with India’. This will be the much needed value-addition for India. If you are going to make something in India, you might not want to consume everything. You should ensure that it is sold to the outside world. So it is really important that India opens up its market and lowers tariffs. This is the biggest challenge for not only Dutch but also for many foreign investors. It will work wonders particularly when India is looking for foreign investment in infrastructure, railway and ports.