Sustainable food system challenges hurting India’s trade, says think tank

New Delhi: Despite being one of the leading exporters of agri-food and organic products, India has yet to fully prioritize exports and address trade challenges linked to the sustainable food system (SFS), according to think tank Indian Council for Research on International Economic Relations (ICRIER).

A sustainable food system (SFS), as defined by the UN's Food and Agriculture Organisation, ensures food security and nutrition without compromising the ability of future generations to meet their needs, balancing economic, social, and environmental aspects.

The issues concerning SFS impacting trade include sporadic bans on exports of products due to global shortages or domestic price increases, rejection of exports in key markets for not adhering to sanitary and phytosanitary standards, lack of a single nodal agency for export quality control, limited discussions and collaborations on SFS through trade agreements, and lack of product specific export strategy and data, ICRIER said in its September policy brief.

"Despite the growing emphasis by the centre and state governments on transitioning to a sustainable food system in India, significant gaps and challenges remain," said the  policy brief titled, 'Sustainable Food Systems and India's Trade Agreements'.

"To advance towards a sustainable food system, India must address these challenges, examine its policies and policy gaps, align policies with the United Nations Sustainable Development Goals (UNSDGs) and replicate success stories to boost the global competitiveness of India’s agri-food sector," it said.

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"Cross–border collaborations through MRAs (Mutual Recognition Agreements) and under trade agreements focused on sustainable food systems are essential to expand India’s agri-food exports and strengthen the resilience of the food system," the think tank added.

During April-June quarter, India's agri-exports stood at $8.44 billion, up from $8.39 billion during the same quarter of the previous year, according to the commerce ministry data.

Overall, India's agri-exports stood at $33.24 billion in FY24, up from $32.43 billion in the same period of the previous year.

ICRIER also recommended a vision document or roadmap for SFS for an integrated food system, ensuring sustainability across the entire food supply chain, from production to consumption and waste management.

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"Since SFS is in the domain of multiple regulatory agencies at the centre and the states, a master policy document laying down the vision of the country and a roadmap towards achieving it in the short, medium and long term will help in budget allocation, ensure co-ordinated efforts and comprehensive solutions," it said.

ICRIER's September policy brief also recommended streamlining processes for smooth co-ordination across multiple regulators, addressing regulatory gaps, implementing farm-to-fork product traceability, facilitating easy access to data and information, reducing trade barriers by strengthening quality testing and certification, allocating higher budget for SFS, and implementing a targeted tax incentive or subsidy programme for nutritious foods.

"There is a need for India to discuss cooperation on SFS in international forums, including its trade agreements. While many measures have been taken by the Indian government on SFS, the country seems to have a defensive positive in trade agreements," it said.

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