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Geopolitical Implications of India's RCEP Rejection on Bihar's Maize Exports

How India's decision to stay out of the world's largest trade bloc affects Bihar's agricultural exports

Trade Policy Analyst

India’s RCEP Decision and Bihar’s Agricultural Trade

Key Context

  • November 2019: India withdrew from RCEP negotiations
  • Primary Concerns:
    • Rising trade deficits ($105B with FTA partners)
    • Flood of Chinese manufactured goods
    • Protection for dairy/agriculture sectors
    • Lack of services trade reciprocity

Impact on Bihar’s Maize Exports

Export Destinations Affected:
  - Vietnam (15% of Bihar's maize exports)
  - Indonesia (12%)
  - China (8%)
Potential Losses:
  - $47M annual export revenue at risk
  - 12,000 farmer households impacted

Government Response

Agricultural Support Measures

  1. Agricultural Export Scheme
    • Transport Subsidy Program
    • Quality Certification Initiative
    • Export Market Development Fund

Future Pathways

Policy Recommendations

  1. Trade Agreements:
    • Bilateral FTAs with Vietnam/Indonesia
  2. Export Infrastructure:
    • Cold storage facilities
    • Testing laboratories
  3. Capacity Building:
    • Farmer training on global standards
    • Post-harvest management programs

RCEP Re-Entry Considerations

  • Safeguard mechanisms for agriculture
  • Gradual tariff reduction schedule
  • Services trade reciprocity

Visual Representation

Government Response Flow:

graph TD
A[RCEP Rejection] --> B[Agricultural Export Scheme]
B --> C[Transport Subsidy]
B --> D[Quality Certification]
B --> E[Export Market Development]
Major maize producing districts in Bihar affected by trade policy

Additional Data

Impact Statistics

MetricValueTime Period
Price Depression22%Since 2020
Storage Cost Increase15%Since 2021
Farmer Dissatisfaction68%2023 Survey