In midst of the corona crisis, agriculture-based industries like yarn, textiles, dairy, sugar and soyabean processing are seeking government incentives to increase exports, as they are expecting a bumper kharif production which can't be fullfiled by domestic demand, says reports.
As per the reports, the average rainfall till July 17 was 10% above normal — and sowing that was 21% more than a year earlier till July 15 has increases the expectations on the kharif harvest.
Meanwhile, demand has been low, causing worries of a glut in the market and its likely impact on prices. That could hurt the farm-based economy that has so far been largely insulated from the effect of the pandemic, say industry insiders.
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With declining domestic and international demand for apparel, especially fashion apparel, the textile industry is concerned about competition from other Asian nations to retain its traditional export markets. Chandran said China, the largest market for Indian yarn, and a few other markets have given duty-free access to several countries such as Bangladesh, says Economic Times reports.
The Dairy Sector
However, the dairy industry where institutional consumption of milk and milk products like cheese, butter and khoya having fallen substantially due to the pandemic have been converting excess milk into milk powder.
Moreover, livestock farmers have struggled a lot to get a fair price for milk, dairy units are seeking incentives to export the milk powder they have been accumulating.
