Editorial

Diversifying Assam’s export basket

The export of lemons and pumpkins from the Sivasagar district to markets in Dubai has brightened up hopes for diversifying Assam’s export basket.

Sentinel Digital Desk

The export of lemons and pumpkins from the Sivasagar district to markets in Dubai has brightened up hopes for diversifying Assam’s export basket. With neighbouring Bangladesh and Myanmar grappling with political turbulence, exploring new markets for niche products can help tap the state’s export potential. Significant progress in transport and logistics infrastructure in the state holds promises for adding more farm produce to the state’s export basket. Currently, tea grown in the state dominates the export basket, accounting for more than 50% of total exports from the state. The volume and quality of products play crucial roles in the commercial viability of the exportable surplus from farms. Small landholdings in the state pose hurdles in generating an exportable surplus of focused products that have high demand in destination markets. Cooperative farming is a viable approach to convince farmers to undertake the production of agricultural items having export demand, but farmers getting their fair share from export business is critical to sustaining it. The formation of Farmer Producers’ companies (FPO) in the state has facilitated the aggregation of export-quality farm produce, but there is no room for complacency. Exporting the first consignment can be easy. Getting orders for second and subsequent consignments depends on multiple factors such as quality of packaging, shelf life, branding, and labelling. Traditional farming practice of growing cereals, pulses, vegetables, and fruits organically adds an advantage to drawing the attention of importers in destination markets, but consignments of such food items without organic certification will find no takers in the competitive global export market. Importers who are ready to pay higher and premium prices for organic products from Assam will not be keen to place fresh orders without these vital documentations. Nevertheless, the improvement in the export ecosystem in the state has unlocked opportunities for FPOs to pay equal attention to export markets apart from tapping the domestic markets. The ‘Logistic Ease Across Different States (LEADS) 2023’ report highlights that the state has taken several significant steps to address the challenges of faster evacuation of perishable cargo from the state. It also notes the creation of a land bank for logistics infrastructure, reserving 15% of land in each industrial park for logistics and storage facilities within the state. The report, however, suggests that Assam “could also study and examine the measure undertaken by other states to improve the logistics services across the state.” It also focuses on the role of the Multimodal Logistics Park developed at Jogighopa and the operationalisation of Dhubri and Pandu waterway terminals for export promotion in the South Asia Subregional Economic Cooperation and Bangladesh, Bhutan, India, Nepal (BBIN) region. A cloud of uncertainty has gripped the export trade potential in the two subregions following rising incidents of attacks on Hindus in Bangladesh and diplomatic strain between India and the neighbouring country over it adversely affecting export-import trade between the two countries. The regime change in Bangladesh has also diminished hopes for immediate use of its seaports for exports from the northeast region, which was allowed by the previous Sheikh Hasina regime to facilitate traders from the region. Apart from farm produce, the state also has a wide range of handloom and handicraft items with high export potential and has been exporting some of these to various global markets, but expanding the market to optimal potential can benefit more producers. This can be possible only when producers are made aware of the changes they need to make to their products to make them export-worthy and increase productivity to cater to the demand for larger volume than usual production. Boosting production alone cannot transform subsistence farming to commercial farming, and this also applies to handloom and handicraft items. Uniformity and standardisation of products for export market quality requirements call for imparting training to producers on quality control, proper storage, quality input materials, etc. Digital technology has brought opportunities of exposing the producers of the development in the competitive domestic and export markets through videos of producers in other parts of the state or other states as well as other countries who have broken the glass ceilings to unlock new opportunities of global trade and commerce. The spread of digital technology and the rise of social media networks and the digital payment ecosystem have empowered producers to take advantage of digital marketing to showcase their products and create an efficient interface with buyers beyond geographical boundaries. This is where government agencies and the private sector can play the role of catalysts to bring technological support closer to the doorsteps of producers in Assam. Guiding younger generations in the producer families to identify the strengths and weaknesses in traditional and new production practices can also motivate them to look at the possibilities of tapping export markets. The government leveraging the startup ecosystem to nurture the exporter’s dream in them will help the state put more products in the export basket.