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Improving supply chain might help AP double exports
Andhra Pradesh ranks fifth in the country, with exports of $14.8 billion during 2011-12 and Five dollars.1 billion till the end of July throughout the current financial year, but there is still a lot of untapped export potential within the State, according to Walter D'Souza, Regional Chairman from the Federation of Indian Export Organisations (FIEO).
He was speaking at a seminar on strategic export management organised here on Friday by FIEO and other organisations. He explained major products exported from the State were drugs, pharmaceutical products,[link widoczny dla zalogowanych], chemicals, plastics,[link widoczny dla zalogowanych], agri products, forest produce, leather, marine products,[link widoczny dla zalogowanych], and engineering products.
Pradesh share in the nation's exports is 4.8 percent when compared with Maharashtra (24.3 percent), Gujarat (21.7 per cent),[link widoczny dla zalogowanych], Tamil Nadu (9 percent) and Karnataka (5.1 per cent). Andhra Pradesh, having a strong agricultural base,[link widoczny dla zalogowanych], can certainly double its share to 10 % within the national exports. However,[link widoczny dla zalogowanych], their state Government needs to do something to improve the supply chain and value chain.
The emphasis should be on exporting value-added products, he explained. Walter D'Souza said the State's performance during the current financial year was creditable having a 20 per cent rate of growth, however it would have to be sustained throughout every season.
National exports dipped by 5.06 percent during the period, he explained. Union Government has set an ambitious export target of $ 360 billion for that current financial year for that country against Three hundred dollars billion achieved last year, but we might fall well short, he explained.
K. Ramabrahmam, President of Vizagpatam Chamber of Commerce and Industry,[link widoczny dla zalogowanych], said hello was a welcome sign that air connectivity from Visakhapatnam was being improved recently, with one international flight to Dubai being operated now and the other to Singapore in the offing within the coming months.
U. Niranjan, Additional Commissioner of Customs and Excise, said hello was vital that you boost exports as the country was spending a lot on importing oil and therefore exports were extremely important but exporters also needs to be conscious of quality. Otherwise, the image of the nation would suffer in the international market.
He spoke about the export incentives being offered by the Union Government,[link widoczny dla zalogowanych].
He explained Visakhapatnam had earned customs revenue of Rs 6,[link widoczny dla zalogowanych],044 crore during 2011-12 and also the revenue throughout the current financial year was Rs 1,776 crore till July.
He explained there was a dip in export earnings however it would improve later, as MMTC had bagged an essential order from Japan for export of iron ore.
He explained the target of Rs 5,200 crore would be achieved.
Keywords: strategic export management, FIEO,
The share exports based on gross export numbers are very misleading particularly in the situation of Maharashtra (24.3 percent) and Gujarat (21.7 per cent). While both contribute a high percentage of India's total exports,[link widoczny dla zalogowanych], the majority of the high export numbers simply originates from the high cost of raw materials within the exports. For example, Gujarat exports $10B in petroleum products. the raw material) is worth $9B. So, what Gujarat added in value was just $1B in exports not $10B (we are able to use Reliance's profits like a barometer for net value addition from Guj petroleum exports). On the other hand, when AP exports $2B in pharmaceuticals, the majority of the value addition, from cheap raw ingredients to the final product, happens within AP (at the very least within India). So, AP's export contribution is quite similar to Gujarat's and Maharashtra's exports in comparison in line with the value addition instead of the simplified gross exports numbers.
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