Resilient supply chains needed for agri sector, says Piyush Goyal

Commerce and Industry Minister Piyush Goyal on Wednesday said that the industry needs to build resilient supply chains and become self-reliant to safeguard itself from supply shocks.

 

While the minister did not refer to any country, the statement came at a time when China has reduced exports of a critical fertiliser – di-ammonium phosphate – creating a global supply squeeze.

 

The restrictions in supplies have also resulted in higher prices. India is largely dependent on the import of di-ammonium phosphate. 

 

“…How will our supply chain become self-sufficient and self-reliant? How will our supply chain become safe (so that) we are not stuck when a country stops supplying fertiliser… We cannot suddenly be in trouble. We have to ensure supply chain resilience in fertiliser, insecticide, pesticide ..,” Goyal said at an event organised by the Indian Chamber of Commerce.

 

He further said that the government will not let fertiliser costs increase. The government provides millions in subsidies to protect farmers by keeping fertiliser costs down, he added.

 

The minister further said that India has the potential to increase agricultural exports to Rs 20 trillion from Rs 4 trillion now. This can be achieved by working on areas such as improving packaging and shelf life, among other things.

 

He also said that there is potential to further increase exports of items such as coffee and spices.