South Asian Agrifood Trade Networks in India: A Case Study of Onion Exports

Abstract

South Asia has emerged as one of the fastest-growing regions of the world while global agricultural trade has expanded since its inclusion into the WTO framework, especially for developing agrarian economies such as India, which are expanding as suppliers of agricultural products to various markets. Within South Asia, agriculture still remains crucial to economic growth and poverty reduction. Though the relative contribution of agriculture has come down in all of the South Asian countries, but the value-added farm products exports have grown in importance and have direct implications for farm incomes and rural livelihoods. It is in this context that this article examines the nature and dynamics of Regional Production Networks (RPNs) or regional value chains in South Asia in the food sector with case studies of fresh onions and their product exports as they originate from India. It tries to understand the organization of value chains and the networks for smaller companies and farmers supplying to lead buyers or chain drivers, explores product, process, and labour standards and suggests mechanisms for leveraging RPNs for better trade, growth and poverty reduction.