15th Finance Commission's HLEG on Agricultural Exports submits the report

The High Level Group (HLEG) on Agricultural Exports set up by the Fifteenth Finance Commission has submitted its report to the Commission on Friday, July 31, 2020.

The HLEG was set up to recommend measurable performance incentives for states to encourage agricultural exports and to promote crops to enable high import substitution. After intensive research and consultations from stakeholders and the private sector, the HLEG has made its recommendations.

The recommendations include a demand-driven approach and focus on 22 crop value chains. The group has also suggested the creation of a state-led export plan with participation from all stakeholders.

Major highlights of the recommendations include

* Focus on 22 crop value chains – demand-driven approach.

* Solve Value Chain Clusters (VCC) holistically with a focus on value addition.

* Create a State-led export plan with participation from stakeholders.

* Private Sector should play an anchor role.

* The centre should be an enabler.

* The robust institutional mechanism to fund and support implementation.

State-led Export Plan for crop value chain cluster

The Group in its report has recommended a State-led Export Plan - a business plan for a crop value chain cluster, which will layout the opportunity, initiatives and investment required to meet the desired value chain export aspiration. These plans will be action-oriented, time-bound and outcome-focused. The Group has also said that certain factors should be taken into consideration for the success of the State led Export Plan:

* Plans should be collaboratively prepared with private sector players and Commodity Boards.

* Leveraging of state plan guide and value chain deep dives.

* The private sector should play an anchor role in driving outcomes and execution.

* The centre should enable state-led plans.

* Institutional governance should be promoted across the state and centre.

* Funding through the convergence of existing schemes, Finance Commission allocation and private sector investment.

The group has recommended that private sector players should play an anchor role in driving outcomes and execution of the agricultural export plan. The group has stated that the additional exports generated after implementation of the recommendations is likely to create an estimated 7 to 10 million jobs in the country. It said that it will also lead to higher farm productivity and farmer income.