Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

[pib] No Agri Export Zones (AEZs) after 2004


Mains Paper 3: Economy | Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management.

From UPSC perspective, the following things are important:

Prelims level: AEZs

Mains level: Measures towards doubling farmer’s income and issues associated


AEZs under stress

  1. In all 60 Agri Export Zones (AEZ) were notified by the Government till 2004 – 05.
  2. In December 2004, an internal peer review conducted by Department of Commerce concluded that the notified AEZs had not been able to achieve the intended objectives.
  3. It was decided that there will be no creation of new AEZs, unless there were strong and compelling reasons.
  4. No new AEZs have been set up after 2004.
  5. All the notified AEZs have completed their intended span of 5 years and have been discontinued.

Agri Export Zone (AEZ)

  1. Nodal Agency: Ministry of Commerce
  2. The concept of Agri Export Zone (AEZ) was introduced in 2001, through EXIM Policy 1997-2001.
  3. It aims to take a comprehensive look at a particular produce/product located in a contiguous area for the purpose of developing and sourcing the raw materials, their processing/packaging, leading to final exports.
  4. The concept hinged primarily on convergence of existing Central and State Government schemes to take care of financial interventions required at various stages of value chain; partnership among various stakeholders’ viz. Governments, farmer, processor, exporter etc.; and focus on targeted products and areas to identify required policy interventions.
  5. All these activities did take place in certain respects in the notified Agri Export Zones.
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