Karnataka - Bangalore   

‘High transportation costs fritter away cost advantage’

— Photo: K. Gopinathan

Checking what’s new: Farmers viewing exhibits at the State-level agricultural produce exporters’ workshop in Bangalore on Friday.

BANGALORE: High transportation costs on agricultural commodities in India has come in the way of their exports as it is difficult to compete in the international market due to such a price disadvantage, according to Karnataka State Agricultural Produce Processing & Export Corporation (KAPPEC) Managing Director K.J. Devendrappa.

Addressing a State-level agricultural produce exporters’ workshop, organised jointly by KAPPEC and Agricultural Technologists’ Institution in Bangalore on Friday, Mr. Devendrappa said that even a World Bank study report had stated that the transportation cost in India was 25 to 30 per cent higher than other countries.

He cited the example of how the high transportation costs pushes up the price of the Indian grape. The cost of grapes in India was about 40 per cent lower than those in Chile, which is India’s main competitor in the international grape market. However, the prices of grapes from both countries are at the same level in the international market owing to the high transportation costs in India, he said.

He also listed lack of uninterrupted power and integrated cold storage chain facilities besides high interest on farm loans and lack of awareness among farmers about actual quality requirements for exports of different produce as “bottlenecks” for export of agricultural produce.

Speaking on the occasion, Agriculture Minister S.A. Ravindranath urged agricultural export businessmen to emulate farmers’ commitment to quality. Pointing out that farmers have maintained quality whenever awareness has been created among them about quality norms, he said: “Why can’t the traders in export business have the same kind of commitment shown by farmers to quality?” He recalled how groundnut oil mills in his home district of Davangere, which had once made huge profits through exports, was now in dire straits.

“The export business crashed as several of the farmers tried to make quick profits by exporting adulterated produce. They showed quality produce during approvals for exports, but exported sub-standard produce. Such exports were rejected,” he said. Referring to the hue and cry over increase in price of sugar, the Minister said: “Everybody is expressing concern over the increase in food prices, especially sugar. But nobody bothered when the sugarcane prices crashed recently forcing farmers not to harvest their produce at all.”

Additional Secretary to the State Government G.K. Vasanth Kumar called for moving from “Green Revolution” to “Evergreen Revolution” where the land is not degraded due to indiscriminate use of fertilizers and chemicals.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Bangalore birders gear up for field day
‘Need to attract youth to fundamental science’
The Hampi way of celebrating coronation fete
Donation for flood relief
Two MLCs sworn in
This farmer has a huge fan following
‘High transportation costs fritter away cost advantage’
Pulse polio drive in State on Sunday
Minister pays visit to AG’s office
Hutti Gold Mines sets itself ambitious target
High fee: nursing students go to court
Writer revives Kannada versus English debate
Nikhil, Chaitanya star for Hyderabad
Theatre festival in CGK’s memory
Fraser Town to spruce up for centenary
HC denies bail to property dealer
Child abandoned

Copyright © 2010, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu