DEAP-EG

122 6468757/2022/PROG-I-INC01 Government of Andhra Pradesh Department of Industries, Commerce and Export Promotion District Export Action Plan, East Godavari, Andhra Pradesh (2022) 1 District Export Action Plan- East Godavari

123 6468757/2022/PROG-I-INC01 Foreword This district export action plan for East Godavari District is being prepared as a part of Developing District as Export Hub under the District Export Hub Scheme initiated by the Ministry of Commerce & Industry, Govt of India, and state Government of Andhra Pradesh. Hon’ble Prime Minister in his Independence Day Speech on 15th August 2019, had, inter- alia observed that each of our district has a diverse identity and potential for targeting global markets and there is a need for converting each district into potential export hubs. To implement Hon’ble PM’s vision for each district, Department of Commerce has mandated the Directorate General of Foreign Trade to work with State Government and District level authorities to promote the East Godavari district as an export hub. In view of above, a District Export Promotion Committee has been formed by the office of DIC, East Godavari under the chairmanship of District Collector. With the said objective, ‘District Export Action Plan’ has been prepared and being presented to concerned stakeholders. The report encompasses in-depth information on district’s geographic, demographic, and administrative profile, along with key statistics of prominent exporting products of district, gaps identified basis stakeholder’s consultation, recommendations proposed to mitigate the gaps and action plans required to implement those recommendations. The report provides insights into exports from the cluster, via analysing exports over the last five years from India and AP for the respective product. The report also shares insights on availability of raw material, technology upgradation, infrastructure, designing, packaging, access to finance, skill development etc. Besides the detailed action plans, the timeline and responsibility matrix has also been defined with implementation schedule to give implementation roadmap of the product. For this desired purpose, an extensive primary and secondary research was conducted. The report has been prepared in co-ordination with the Office of DGFT, Visakhapatnam and Office for Director of Industries, GoAP. The data has been sourced from multiple avenues, including but not limited to data provided by office of DGFT, Visakhapatnam, UAM data (2019), DICs, 2011 Census of India, stakeholder consultation and several other secondary resources. 2 District Export Action Plan- East Godavari

124 6468757/2022/PROG-I-INC01 Contents 1. Vision of Districts as Export Hubs.................................................................. 9 2. District Profile ..................................................................................................... 9 2.1 Administrative set-up ........................................................................................ 9 2.2 Geography ......................................................................................................... 10 2.3 Topography & Agriculture .............................................................................. 10 2.4 Objective of the East Godavari District Export Action Plan .................... 10 2.5 Steps for East Godavari District Export Action Plan Implementation... 11 2.6 Connectivity....................................................................................................... 11 3. Industrial profile of the district ...................................................................... 11 3.1 Open Access and Promotion of Green Power............................................ 11 3.2 Summary of Industrial Parks of East Godavari District............................ 12 3.3 Industrial landscape of the district ............................................................... 12 3.4 Top 15 Export Commodities of East Godavari District............................. 14 3.5 Top 10 Products Exported from East Godavari District for FY 2021-22 15 3.6 Selected Products as District’s Exports Hub ............................................. 15 3.7 General Characteristics of the Products ..................................................... 16 4. Product 1: Cashew / Cashew Kernel ............................................................ 17 4.1 Justification of Cashew / Cashew Kernel for District as Export Hub .... 17 4.2 Product Overview ............................................................................................. 17 4.3 Product Profile .................................................................................................. 19 4.4 Industry Association........................................................................................ 19 4.5 Export Scenario of Cashew Nut / Cashew Kernel...................................... 19 4.6 Country-wise Export details of East Godavari District ............................. 20 4.7 Export Potential for Cashew kernel .............................................................. 21 4.8 Potential Areas for Value Added Products ................................................. 22 4.9 SWOT Analysis for Cashew Kernel Exports ............................................... 22 4.10 Challenges and interventions..................................................................... 23 4.11 Future Outcome............................................................................................. 24 5. Product 2: Coir / Coir Products ..................................................................... 24 5.1 Justification for Coir / Coir Products for District as Export Hub............ 24 5.2 Product Overview ............................................................................................. 24 5.3 Product Profile .................................................................................................. 26 5.4 Export Scenario of coir products.................................................................. 26 5.4.1 HS Codes of coir products.......................................................................... 26 5.5 Coir / Coir Products Export from East Godavari District ......................... 27 3 District Export Action Plan- East Godavari

125 6468757/2022/PROG-I-INC01 5.6 Export Potential of coir / coir products........................................................ 27 5.7 Value Addition in Coir / Coir Products......................................................... 28 5.8 SWOT analysis for coir /coir products exports .......................................... 28 5.9 Challenges and interventions ........................................................................ 29 5.10 Future Outcome............................................................................................. 30 6. Product 3: Nursery Plants............................................................................... 30 6.1 Justification for Nursery Plants as District as Export Hub...................... 30 6.2 Product Overview ............................................................................................. 31 6.3 Product Profile .................................................................................................. 32 6.4 Industry Association for Nursery Plants ..................................................... 32 6.5 Export Details of East Godavari District for Nursery Plants.................... 32 6.5.1 HS Codes of Nursery Plants ....................................................................... 32 6.6 Country-wise Nursery Plants Exports from East Godavari District ....... 32 6.7 Export Potential of Nursery Plants ............................................................... 33 6.8 Value Addition................................................................................................... 34 6.9 SWOT Analysis for Nursery Plants Exports................................................ 34 6.10 Challenges and Interventions for nursery Plants Exports ................... 35 6.11 Future Outcome............................................................................................. 36 7. Skill Development............................................................................................. 36 8. Key Schemes..................................................................................................... 37 8.1 Key schemes of Government of India (GoI)................................................ 37 8.1.1 Service Exports from India Scheme (SEIS) Foreign Trade Policy ..... 37 8.1.2 Rebate of State and Central Levies and Taxes (RoSCTL) Scheme..... 38 8.1.3 Advance Authorisation Scheme ................................................................ 38 8.1.4 Rebate of Duties & Taxes on Exported Products (RoDTEP Scheme) 38 8.2 Schemes under AP State Export Promotion Policy 2022-27 ................... 39 8.2.1 Marketing Development Assistance Scheme (MDA) ............................. 39 9. Action Plan......................................................................................................... 39 10. Treatment of Exports under GST Act ........................................................... 42 11. Annexure 1: Export Performance Indicator (EPI) 2022............................. 47 12. Annexure 2: Response from Indian Embassies......................................... 51 12.1 Embassy of Fiji: Response from Indian Ambassador in Fiji...................... 51 12.2 Embassy of Mexico: Response from Indian Ambassador in Mexico....... 53 12.3 Embassy of South Africa................................................................................... 55 12.4 Embassy of Russia............................................................................................. 58 12.5 Embassy – Consulate General of India Hong Kong .................................... 61 4 District Export Action Plan- East Godavari

126 6468757/2022/PROG-I-INC01 13. Annexure 3: Minutes of all 4 Export Promotion Committee Meetings... 70 13.1 Minutes of 1st SEPC dated 27th July 2022 ...................................................... 70 13.2 Minutes of 2nd SEPC dated 22nd August 2022 ............................................... 72 13.3 Minutes of 3rd SEPC dated 5th Sept 2022........................................................ 75 13.4 Minutes of 4th SEPC dated 5th Sept 2022........................................................ 79 14. Annexure 4: Recognized Trade Fairs ........................................................... 82 15. Annexure 5: East Godavari District Stakeholders Consultation Data Sheet 83 List of Tables Table 1: Details of the industrial plots in the district ............................................................ 12 Table 2: Industries & export details ..................................................................................... 13 Table 3: Top 15 export Commodities of East Godavari district for FY 2021-22................... 14 Table 4: Top 10 Products exported from East Godavari during FY 2021-22 ........................ 15 Table 5: General characteristics of the products of East Godavari district ............................ 16 Table 6: HS codes for cashew /cashew kernel and by-products ............................................ 20 Table 7: List Countries for Cashew / Cashew Kernel Exports during 2021-22 ..................... 20 Table 8: Details of top 5 potential countries for exports ....................................................... 21 Table 9: SWOT analysis for cashew kernel exports ............................................................. 22 Table 10: Challenges and interventions for cashew kernel exports ....................................... 23 Table 11: Annual target for cashew export from the district................................................. 24 Table 12: HS codes for Coir-products.................................................................................. 26 Table 13: Country-wise Coir / Coir Products Exports during 2021-22.................................. 27 Table 14: Top 5 countries importing Coir / Coir Products during 2021 ................................ 27 Table 15: SWOT analysis for coir / coir products exports .................................................... 28 Table 16: Challenges and interventions of coir / coir products ............................................. 29 Table 17: Annual Target for Coir / Coir Products Export ..................................................... 30 Table 18: Top 6 Countries Nursery Plants Exports from India ............................................. 31 Table 19: HS codes for nursery plants.................................................................................. 32 Table 20: Country-wise exports of nursery plants from East Godavari during 2021-22 ........ 33 Table 21: Top 5 Countries importing nursery plants during 2021......................................... 33 Table 22: SWOT analysis for nursery plants exports............................................................ 34 Table 23: Challenges and interventions for nursery plants exports ....................................... 35 Table 24: Annual target for nursery plants export ................................................................ 36 Table 25: Schemes under Export Promotion ........................................................................ 39 Table 26: East Godavari District export promotion action plan ............................................ 39 Table 27: EPI indicator of Andhra Pradesh.................................................................... 47 Table 28: List of Russian import commodities 2021...................................................... 58 Table 29: List of Russian Chamber and Association .................................................... 58 Table 3030: List of Exhibition in Russia.............................................................................. 59 Table 311: List of Imports commodities from Hong Kong................................................... 62 Table 323: List of Coir and Coir products importer from Hong Kong .................................. 66 Table 336: East Godavari District Export promotion action plan stakeholder list ................. 83 5 District Export Action Plan- East Godavari

127 6468757/2022/PROG-I-INC01 List of Figures Figure 1: Vision of Hon'ble PM for Districts Export Hubs ..................................................... 9 Figure 2: Map of East Godavari district ............................................................................... 10 Figure 3: State-wise share of cashew Production in India..................................................... 18 Figure 4: India’s cashew export trend .................................................................................. 19 Figure 5: Country wise share of Coir and coir products from India (2020-21)...................... 25 Figure 6: India’s coir and coir products export trend (USD Mn) .......................................... 26 Figure 7: Trend India's Nursery Plants Exports.................................................................... 31 6 District Export Action Plan- East Godavari

128 6468757/2022/PROG-I-INC01 Abbreviations APIIC Andhra Pradesh Industrial Infrastructure Corporation APERC Andhra Pradesh Electricity Regulatory Commission APSEC Andhra Pradesh State Export Promotion Committee APSSDC Andhra Pradesh State Skill Development Corporation APEDA Agricultural and Processed Food Products Export Development Authority APTPC Andhra Pradesh Trade Export Corporation BSI Burau of Indian Standards CAGR Compounded Annual Growth CEPC Cashew Export Promotion Council CFC Common Facility Centre CIFT Central Institute of Fisheries Technology CIPET Central Institute of Petrochemicals Engineering and Technology CITD Central Institute of Tool Design CNSL Cashew Nutshell Liquid CoE Centre of Excellence CONCOR Container Corporation of India CPC Common Production Centre DCCD Directorate of Cashew nut and Cocoa Development DEH District as Export Hub DFIA Duty Free Import Authorization DGFT Directorate General of Foreign Trade DGCIS Directorate General of Commercial Intelligence and Statistics DIC District Industry Centre DIEPC District Industrial Export Promotion Committee DISCOM Distribution Company (Power) DoI Director of Industries DoR Department of Revenue EPCG Export Promotion Capital Goods EPI Export Performance Indicator FIEO The Federation of India Export Organizations FOB Free on Board FTA Free Trade Agreement FTP Free Trade Partners GI Geographical Indication GoI Government of India GoAP Government of Andhra Pradesh HACCP Hazard Analysis and Critical Control Point HS Code Harmonized System Code IC International Cooperation ICST Industry Customised Skill Training IEC Import Export Code IGIAT Indo-German Institute of Advanced Technologies IIP Indian Institute of Packaging ISO International Standards Organisation IT Information Technology MAI Market Assistant Initiative MDA Market development Assistance MMPA Marine Mammal Protection Act MMLH Multi Modal Logistic Hub 7 District Export Action Plan- East Godavari

129 6468757/2022/PROG-I-INC01 Mn Million MoU Memorandum of Understanding MPEDA Marine Products Export Development Authority MSME Micro Small and Medium Enterprises MT Metric Ton MW Mega Watt NHB National Horticulture Board NIFPHTT National Institute of Fisheries Post Harvest Technology and Training NSDC National Skill Development Cooperation NSIC National Small Industries Corporation NSQC National Skills Qualification Committee NSQF National Skill Qualification Framework ODOP One District One Product OJT On-Job-Training PLI Performance Linked Incentive PPP Public Private Partnership PMEGP Prime Minister’s Employment Generation Program PSU Public Sector Units QCI Quality Council of India RoSCTL Rebate of State and Centre Levying Taxes SDEI Skill Development Entrepreneurship and Innovation SEIS Service Export from India Scheme SEZ Special Economic Zone SIDBI Small Industries Development Bank of India SIP Sanitary Import Permit SIMP Seafood Import Monitoring Program SWOT Strength, Weakness, Opportunities, Threats TEE Towns of export excellence TSDI Technical Skill Development Institute UAE United Arab Emirates UK United Kingdom USA United States of America UAE United Arab Emirates UAM User Activity Monitoring UT Union Territories VAP Value Added Product VHSE Vocational Higher Secondary Education ZED Zero Defect Zero Effect 8 District Export Action Plan- East Godavari

130 6468757/2022/PROG-I-INC01 1. Vision of Districts as Export Hubs “Each district of our country has a potential equal to that of one country, each of our districts has the capacity equal to a small country in the world.. why should each district not think of becoming an export hub? . . Each of our districts has a diverse identity and potential for global market” - Honourable Prime Minister of India, Shri Narendra Modi Figure 1: Vision of Hon'ble PM for Districts Export Hubs Foreign trade from India constitutes of 45% of its GDP. Until 2019, only the central government was engaged in the decision making of foreign trade, without any participation or involvement of state and/ or district stakeholders. However, now, understanding that there are diverse elements that contribute towards an enabling and conducive foreign trade environment; the central government has identified that with policy & strategy, active support of the state governments and district administration are also equally required. Thus, to decentralize the existing activities, to boost local production & its exports and to ensure active participation of state & district stakeholders, vision of district as export hubs was put to action. Department of Commerce, through Directorate General of Foreign Trade (DGFT) is working with the State / UT Governments to achieve this objective. DGFT and Director of Industries (DoI) have aimed at synergising their efforts to identify the key products, export trends and challenges. Further to minimize the challenges, quantify the exports and outline export strategy; a detailed district-wise Export Action Pan has been made for all 26 districts of AP. 2. District Profile East Godavari District is a residuary portion of the old Godavari District after West Godavari District was separated in 1925. As the name of the district conveys, East Godavari District is closely associated with the river Godavari, occupying a major portion of the delta area. East Godavari District lies North - East Coast of Andhra Pradesh and bounded on the North by Visakhapatnam District and the State of Orissa, on the East and the South by the Bay of Bengal and on the West by Khammam and West Godavari Districts. Area of the District is 10,807 Sq. Kms. The district is located between Northern latitudes of 16o 30' and 18o 20' and between the Eastern longitudes of 81o 30' and 82o 30'. It has a population of 52.9 Lakhs where 25.7 Lakh are males, and 25.8 lakhs are females as per 2011 Census. Literacy rate is 70.5% and urbanisation is 25.5%. The district was further reorganised in April 2022 with Rajahmundry has head quarter of the district. 2.1 Administrative set-up The district was divided into 2 Revenue divisions for the administrative convenience in April 2022. The Divisions are Rajamahendravaram and Kovvur. Map showing the formation of East Godavari District Revenue Divisions is shown in the figure below. 9 District Export Action Plan- East Godavari

131 6468757/2022/PROG-I-INC01 Figure 2: Map of East Godavari district 2.2 Geography East Godavari District is located between Northern latitudes of 16o 30' and 18o 20' and between the Eastern longitudes of 81o 30' and 82o 30'. Rajahmundry is headquartered of East Godavari. The Rajahmundry city is around 70 km to the west of the Bay of Bengal on the east coast of India. 2.3 Topography & Agriculture Godavari is major river flows in the district which fertilises adjoining tracts of East Godavari and West Godavari Districts. Land use pattern comprises 4,25,000 ha as Agriculture, Forest covers 3,23,000 ha, non-agriculture land covers 3,81,000 ha and cultivable barren land as 5,98,000 ha in the district. The predominant crops such as paddy, etc, and commercial crops such as plantations like coconut, cashew and others are the main agricultural products cultivated in the district. The district is endowed with a rich variety of soils. It occupies an important place in agriculture which is the most important occupation and paddy is the main food crop produced. 2.4 Objective of the East Godavari District Export Action Plan In line with the vision of the Hon’ble Prime Minister, District Exports Action Plan is being prepared with the following objectives: a) To enhance the volume of exports from East Godavari District b) To create a flexible and permanent institutional mechanism with participation from all stakeholders to act as a facilitator and promoter of exports from the district. 10 District Export Action Plan- East Godavari

132 6468757/2022/PROG-I-INC01 c) To identify lead products and sectors for targeted and continued interventions for export promotion. d) To synergize various schemes at the centre, state and district level which address industry and export. e) To provide support both domestically and internationally to local industry from the establishment of business to post export activity through export of goods and services. f) To increase efficiency by streamlining export infrastructure. g) To augment both supply and demand through different strategies of trade promotion. 2.5 Steps for East Godavari District Export Action Plan Implementation a) Get the Diagnostic Study Report (DSR) for the district and the selected commodities under District as Export Hubs, from a professional consultancy b) Address the gaps identifies in DSR, such as infrastructure requirements, connectivity, raw material availability, skill training / tool kits, technology transfer, promotion of tourism and others c) DPR (Detailed project report) need to be prepared for the district with costing and implementation action plan d) Creation of an event calendar comprising of events to be conducted in a financial year with a focus on international marketing events. e) Reach out to Country Embassies and invite them to State, exhibit the strengths for the districts as export hubs f) Collaborate with EIA, EPC, DGFT, FIEO for Capacity Building workshops for exporter and other stakeholder for creating awareness 2.6 Connectivity a) By Air: The nearest airport is Rajahmundry Airport. It is located at 15 km from the city of Rajahmundry. b) By Rail: District has a rail network of 171 kM connecting Visakhapatnam and Vijayawada Junctions that passes through the district Headquartering Rajahmundry city. c) By Road: National Highway, NH-5 has a road network of 125 kM and states highway network of 707 kM d) Port: Two ports viz Kakinada and Visakhapatnam are well connected to the district 3. Industrial profile of the district Industries across the sectors such as Food, agro & marine based industries, Chemicals & Petrochemicals, Metallic & Non-metallic Mineral, Paper & Pulp, Textiles & allied, and other industries are key economy drivers in the district with a total of 2,136 industries providing an employment of around 28,000 persons. A new coir Industrial cluster under SFURTI project is in the progress of establishment in the district where as APIIC is proposed to establish MSME park at Kalavacharla (Village) of Rajanagaram (Mandal) where 30-50 Cashew nut processing units to be grounded. 3.1 Open Access and Promotion of Green Power As per the Andhra Pradesh Electricity Regulatory Commission (APERC) Regulation No. 2 of 2005, APERC allows contracted demand of more than 1 MW to all the consumers for open access. 11 District Export Action Plan- East Godavari

133 6468757/2022/PROG-I-INC01 GoAP is promoting use of renewable energy through amendment to principal Regulation No. 2 of 2005 as per following details: a) Exemption of transmission and wheeling charges for solar & wind power for captive use / 3rd party sale within the state b) Exemption of distribution losses for solar & wind power projects injecting at 33 kV and below irrespective of delivery voltage level within the DISCOM of such projects c) Exemption of cross subsidy surcharge and additional surcharge for captive consumption 3.2 Summary of Industrial Parks of East Godavari District The Industrial parks or areas in the East Godavari District, the below table shows the details of no of plots, the area of the industrial park and the land available. The summary of Industrial plots in East Godavari District are as follows. Table 1: Details of the industrial plots in the district1 Sl. No. Name of Industrial Park Area No. of Plots Remarks (acre) 1 Industrial Park and IDA 121 86 All plots are allocated Dowlaiswaram, Rajahmundry Rural(M) 2 Autonagar 100 606 All plots are Palacharla (V), Rajanagaram(M) allocated 3 Industrial Park 73 5 All plots are M.R. Palem (V), Kadiam(M) allocated 4 MSME park 102 - Proposed Kalavacharla(V), Rajanagaram(M) 5 Industrial Estate 20 - Proposed Nidadavolu 6 Multi Super Speciality Hospital Hub, 2.0 - Proposed Dowlaiswaram 3.3 Industrial landscape of the district Industries across the sectors such as Food, agro & marine based industries, Chemicals & Petrochemicals, Metallic & Non-metallic Mineral, Paper & Pulp, Textiles & allied, and other industries are key economy drivers in the district. Other industries include Aqua feed, cattle feed and poultry feed, oil extraction, distilleries, etc. Major exports from East Godavari comprises 1 District Industries Centre, East Godavari 12 District Export Action Plan- East Godavari

134 6468757/2022/PROG-I-INC01 Food, agro & marine based products, Engineering and Machinery products followed by others. Sectoral details of industries are provided in the table below. Table 2: Industries & export details2 S. Industry Total Investment Employment Exports No Units (INR Cr.) (No. of Persons) INR Cr. 1 Aqua and 3 3.42 22 3 Marine 761 2 Auto 21 315 49 73 Components 135 170 187 1 3 Basic Metal & 170 43 458 1,659 Alloy 10 1,345 2,276 0.23 4 Bricks 41 67 176 13,967 5 Chemicals & 79 24 545 25 Petrochemical s 1 0.42 2 1,566 6 Coir/Coir 479 15,491 5,320 1,659 Based 255 78 245 407 7 Engineering 7 8 Fertiliser & 75 97 5 Pesticides 19 2.54 64 9 Food, Agro & 9 2.89 79 Marine 90 476 1,780 Products 10 Glass & 680 851.44 6,409 Ceramics 59 3,507 7,800 11 IT (Information 8 146 technology) 25 120 324 Infra 41 21 740 12 Leather 224 103 50.08 679 13 Machinery & 16 98.83 365 Equipment 14 Metallic and Non-Metallic Mineral 15 Other Industries 16 Paper, Pulp and Publishing 18 Power Generation 19 Retail (Wholesale) 20 Rubber & Plastics 21 Textiles & Allied 22 Tobacco, Beverage & 2 District Industries Centre, East Godavari & Exports, DGCIS 13 District Export Action Plan- East Godavari

135 6468757/2022/PROG-I-INC01 S. Industry Total Investment Employment Exports No Units (INR Cr.) (No. of Persons) INR Cr. Allied 2,136 23,001.62 28,167 19,981 Products Total 3.4 Top 15 Export Commodities of East Godavari District The “HS Code 89059090- OTHER UNDER HDNG 8905” (Light-Vessels, Fire-Floats, Dredgers, Floating Other Smaller Vessels) is one of the top 15 products of the district, which is exported to Singapore, Srilanka, UAE, South Africa, Malaysia, and Indonesia with a value of 11,634 Cr. The country-wise details of top 15 products exported with value for East Godavari district is shown in the table below for FY 2021-22 Table 3: Top 15 export Commodities of East Godavari district for FY 2021-22 HS Code Commodity Country Value Value Description Unit Quantity INR Cr. USD Mn 89059090 OTHER UNDER SINGAPORE Nos 17 3,479.03 468.69 HDNG 8905 03061720 VANNAMEI USA MT 49,674 3,253.40 436.82 SHRIMP (LITOPENAEUS VANNAMEI) 89059090 OTHER UNDER SRI LANKA Nos 1 2,604.90 349.92 HDNG 8905 89059090 OTHER UNDER SOUTH AFRICA Nos 1 1,909.50 259.59 HDNG 8905 17019990 OTHR REFND SUDAN MT 470,336 1,584.81 213.13 SUGAR INCLUDNG CENTRIFUGAL SUGR 89059090 OTHER UNDER UAE Nos 2 1,493.44 203.04 HDNG 8905 89059090 OTHER UNDER MALAYSIA Nos 4 1,443.00 196.86 HDNG 8905 OTHER MT 10,646 856.21 114.85 16052900 SHRIMPS AND U S A PRAWNS 10063010 RICE GUINEA MT 286,230 774.75 103.75 PARBOILED 14 District Export Action Plan- East Godavari

136 6468757/2022/PROG-I-INC01 HS Code Commodity Country Value Value Description Unit Quantity INR Cr. USD Mn 89059090 OTHER UNDER INDONESIA Nos 2 704.53 94.60 HDNG 8905 10063010 RICE COTE D' IVOIRE MT 225,594 598.36 80.33 PARBOILED 10064000 BROKEN RICE CHINA P RP MT 232,288 531.26 71.22 10064000 BROKEN RICE SENEGAL MT 249,385 505.41 67.75 10063010 RICE BENIN MT 191,659 491.54 65.77 PARBOILED PARTS OF SAUDI ARAB MT 560 485.44 65.18 84119900 OTHER GAS TURBINES 3.5 Top 10 Products Exported from East Godavari District for FY 2021-22 Out of top ten products, Light-Vessels, Fire-Floats, Dredgers, Floating Other Smaller Vessels under HS code 8905, Vannamei Shrimp &others, Rice (Parboiled and Broken) and Refined sugar including centrifugal sugar are the major ones followed by others. Products-wise details of exports for FY 2021-22 are provided in the table below. Table 4: Top 10 Products exported from East Godavari during FY 2021-22 S. No Product Value (in Cr.) 1 OTHER UNDER HDNG 8905 (Light vessels & Floating Bodies) 11,820 2 4,225 CRSTCNS W/N IN SHL, LIVE, FRSH, CHLD, FRZN, 3 DRDSLTD/IN BRINE (VANNAMEI SHRIMP & OTHERS) 3,319 4 RICE PARBOILED 2,422 5 OTHER REFINED SUGAR INCLUDNG CENTRIFUGAL 1,259 6 SUGAR 912 7 BROKEN RICE 673 8 502 9 OTHER SHRIMPS AND PRAWNS 243 10 195 PARTS OF OTHER GAS TURBINES 25,570 TUGS AND PUSHER CRAFT PARTS OF TURBINES AC GENERATORS(ALTRNTRS) Total 3.6 Selected Products as District’s Exports Hub The following three products have been chosen by DIEPC based on the emerging products from the district and demand in the international markets for export under the District as Export 15 District Export Action Plan- East Godavari

137 6468757/2022/PROG-I-INC01 Hub Program of Government of India, though they are not appearing in the top 10 products export list. 1. Cashew / Cashew Kernel 2. Coir / Coir Products 3. Nursery Plants 3.7 General Characteristics of the Products The general characteristics such as HS code, GI (Geographical Indicators) tag, distinctive nature of product life cycle and the responsive government agency that they are associated for providing handholding support and the department offering schemes and incentives for promotion of the three products are selected for the district exports are provided in the table below. Table 5: General characteristics of the products of East Godavari district Sl. Product HS Whether Whether Concerned Line Ministry / State No Name Code GI Product is Department / Boards Tagged Perishable 1 Cashew / 0801 No No 1. Department of Agriculture and Cashew Farmers Welfare - Govt. of India Kernel 2. Ministry of Food Processing Industries – Govt. of India. 3. Ministry of Micro, Small and Medium enterprises, Govt. of India 4. Agricultural and Processed Food Products Export Development Authority (APEDA) 5. Cashew Export Promotion Council (CEPC) 6. Department of Agriculture – GoAP 7. Department of Horticulture - GoAP 8. Department of Industries - GoAP 9. AP Food Processing Society – GoAP 2 Coir / Coir 530500, No No 1. Department of Agriculture and Farmers Welfare - Govt. of India Products 570220 2. Ministry of Micro, Small and Medium Enterprises, Govt. of India 3. Agricultural and Processed Food Products Export Development Authority (APEDA) 4. Coir Board 5. Coconut Development Board 6. Department of Agriculture - GoAP 7. Department of Horticulture - GoAP 8. Department of Industries – GoAP 3 Nursery 0602 No Yes 1. Department of Agriculture and Plants Farmers Welfare - Govt. of India 16 District Export Action Plan- East Godavari

138 6468757/2022/PROG-I-INC01 Sl. Product HS Whether Whether Concerned Line Ministry / State No Name Code GI Product is Department / Boards Tagged Perishable 2. Department of Horticulture - Govt. of AP 4. Product 1: Cashew / Cashew Kernel 4.1 Justification of Cashew / Cashew Kernel for District as Export Hub a) There are 150 micro and small cashew nuts processing units in East Godavari district spreading in 7 Mandals b) 769 villages are planned for cashew cultivation in East Godavari District (Source: Directorate of Economy & Statistics, 2019-20) c) The area under the cashew nut crop in East Godavari district is 13,296 hectares d) Favorable climatic conditions and presence of suitable soil in the coastal region which helps in increasing the yield of cashew nuts. e) The district is well connected to two major ports viz: Visakhapatnam and Kakinada for exports f) APIIC proposed MSME park at Kalavacharla (Village) of Rajanagaram (Mandal) where 30-50 Cashew nut processing units to be grounded g) Importing raw cashew nuts from Ivory Coast, Tanzania, Burkina Faso, Ghana, Benin, Indonesia through Kakinada, and Visakhapatnam ports 4.2 Product Overview Cashew kernels are obtained through processing (roasting / steaming, shelling and peeling) of raw cashew nuts. Cashew Kernels, for commercial purposes, are graded based on their color, shape and size. Cashew kernels are also available as roasted, salted, flavored and coated with spices, honey, etc. Value added products like cashew powder, cashew butter, cashew drink, etc. are also available in the market. India is among the largest cashew-producing countries in the world. In India, cashew cultivation spread along the coastal regions of the peninsula. Cashew is mainly grown in states like Maharashtra, Kerala, Karnataka, Tamil Nadu, Andhra Pradesh, Goa, Odessa, West Bengal, and some parts of the North-Eastern region. According to data published by the National Horticulture Board (NHB), Maharashtra stands first in annual cashew nut production during 2021-22 at 0.20 million tonnes, growing from 0.19 million tonnes cashew nut produced in 2020-21. Besides the vast scale of cashew production, India is also known for pioneering cashew processing and exporting cashew kernels across the globe. The cashew processing industry was earlier concentrated in Kollam (Kerala), Mangalore (Karnataka), Goa, and Vettapalam (Andhra Pradesh), but now it is spread across many states of India. Over the years, India has emerged as the global processing hub for the cashew industry. State-wise share of cashew production is shown in the figure below. 17 District Export Action Plan- East Godavari

139 6468757/2022/PROG-I-INC01 . Figure 3: State-wise share of cashew Production in India India is the largest cashew exporter, with more than 15% of the world’s export share. India primarily exports Cashew Kernels and very small quantities of Cashew nuts shell liquid. During 2021-22, the cashew exports by value grow from US$ 420 million in 2020-21 to US$ 452 million in 2021-22, witnessing a growth of 7%. In terms of volume, India’s cashew exports recorded an increase of 9% from 70.5 million kg in 2020-21 to reach 76.8 million kg in 2021- 22. In March 2022, the country exported cashews worth US$ 40.0 million, up from US$ 33.6 million in February 2022. Importing of raw cashew nuts has played a key role in the growth of the Indian cashew industry, which accounts for almost half of the domestic and export demand for cashew kernels in the country. To address the same, the Department of Agriculture, Cooperation and Farmers Welfare (DAC&FW), under the mission for Integrated Development of Horticulture (MIDH) and Rastriya Krishi Vikas Yojana (RKVY), had implemented various initiatives that led to increased domestic production of cashew. It includes massive area expansion under cashew cultivation and replacing senile cashew plantations with high-yielding varieties in traditional and non- traditional states. DAC&FW has also approved the roadmap program to extend the cashew cultivation area by 1.20 lakh hectare presented by the Directorate of Cashew nut & Cocoa Development (DCCD) India exports cashews to over 60 countries spread across different parts of the world. The key export destinations for India are UAE, Japan, Netherland, Saudi Arabia, the USA, the UK, Canada, France, Israel, and Italy. As per the APEDA statistics on the exports of cashew kernels and Cashew nutshell liquid, UAE is the largest importer of Indian cashews, valued at US$ 131.5 million, accounting for 29% of overall exports during 2021-22 as compared to US$ 98.5 million in the previous year. In volume terms, India's cashew exports to UAE stood at 16.6 million kg, growing by 29% from 12.8 million kg of exports recorded in the previous year. India cashew export trend is shown in the figure below. 18 District Export Action Plan- East Godavari

140 6468757/2022/PROG-I-INC01 Figure 4: India’s cashew export trend Japan and Netherland are among the top 3 importers of Indian cashews, with a share of exports at 13% and 9%, respectively. India's cashew kernels and Cashew nutshell liquid exports to Japan and Netherland are valued at US$ 58.1 million and US$ 41.1 million, respectively. Vietnam, a key importer of Indian cashews, has consistently grown in imports of India's cashew at a CAGR of 7% from 2016-17 to 2021-22. The top 10 importing countries of Indian cashew have a share of 84% of the total exports, which implies the huge significance of traditional markets. This strong growth in cashew exports across export destinations continues to drive economic growth and employment generation in India's key cashew-growing states. 4.3 Product Profile The cashew tree grows in tropical areas with an annual rainfall ranging from 400 to 4,000 mm, and it grows from sea level to an altitude of 1,000 m. The area under the cashew nut crop in East Godavari district (19 mandals) is 13,296 Hectares. The crop mainly spread over in Devarapalli, Gopalapuram, Nallajerla, Korukonda, Gokavaram, Rajanagaram, Rangampeta Mandals where around 150 processing micro and small industries are also located. As per the processing units, around 19,000 MT of cashew nuts is processed annually. 4.4 Industry Association The Rajahmundry Cashew Association is working for the development of products. 4.5 Export Scenario of Cashew Nut / Cashew Kernel HS code -The identified HS codes for the export of Cashew /Cashew Kernel and other by-products are exported and the percentage of export under each commodity is shown in the table below. 19 District Export Action Plan- East Godavari

141 6468757/2022/PROG-I-INC01 Table 6: HS codes for cashew /cashew kernel and by-products HS Code Contribution of Value in Product Description Export (%) INR Cr. 13021920 0.36% 08013100 0.20% 0.73 Cashew Nutshell Liquid (CNSL) 08013210 1.05% 08013220 98.38% 0.40 Cashew Nuts Fresh/Dried in Shell 100 Total 2.12 Cashew Kernel Broken 199.27 Cashew Kernel Whole 202.53 4.6 Country-wise Export details of East Godavari District The table below clearly stipulates, the commodity “Cashew Kernel” is the major exported product in term of revenue from East Godavari district. The major importing countries are Netherlands, Japan, UAE, Spain, Belgium, Greece, Egypt, Oman, Hong Kong, and UK. The list of 13 Countries Export data value is as under for 2021-22: Table 7: List Countries for Cashew / Cashew Kernel Exports during 2021-22 HS Commodity Quantity Value Value in Code Description MT Country in INR USD 08013220 CASHEW KARNEL, 1298.43 08013220 WHOLE NETHERLANDS 870.30 (Cr.) (Mn) 08013220 JAPAN 08013220 CASHEW KARNEL, UAE 600 72.84 97.6 08013220 WHOLE SPAIN 333.4 08013220 562 75.4 08013210 CASHEW KARNEL, BELGIUM 68 08013220 WHOLE GREECE 31.8 37.43 50.2 08013220 JAPAN 42.53 08013220 CASHEW KARNEL, EGYPT 27 23.54 31.5 13021920 WHOLE 15 OMAN 12.1 3.24 4.3 08013100 CASHEW KARNEL, HONG KONG 158.9 WHOLE 2.2 3 JAPAN 51.5 CASHEW KARNEL, 2.12 3 WHOLE VIETNAM 1.77 2.4 CASHEW KARNEL, BROKEN 0.98 1.3 CASHEW KARNEL, 0.96 1.3 WHOLE 0.73 0.9 CASHEW KARNEL, WHOLE 0.41 0.5 CASHEW KARNEL, WHOLE CASHEW SHELL LIQUID (CNSL) CASHEN NUTS FRESH/DRIED IN SHELL 20 District Export Action Plan- East Godavari

142 6468757/2022/PROG-I-INC01 HS Commodity Quantity Value Value in Code Description MT Country in INR USD 08013220 CASHEW KARNEL, UK 2 WHOLE (Cr.) (Mn) 0.1 0.13 The total value of exports value for cashew from the district in all HS codes is INR ~203 Cr, exported to 13 countries, out of which 98.4% revenue is from “Cashew Kernel”, followed by “Cashew Kernel broken” – 1.05 %. 4.7 Export Potential for Cashew kernel In terms of the export potential, countries where the current level of exports is quite low can be prioritized over relatively mature markets for the purpose of market penetration. We may do feasibility and gap analysis to address the steps required for increase the share in exports, through volume or value addition. The profiling of target export markets is as tabulated below: Table 8: Details of top 5 potential countries for exports Exporter Value imported in 2021 Share in country’s Quantity (MT) imported in 2021 (USD ‘000) imports (%) Product code 0801 – Oman Imports Total 10,740 100 4,557 India 9,590 89.3 3,936 Indonesia 614 5.7 322 Srilanka 393 3.7 256 Product code 0801 – Spain Imports World 117,464 100 27,600 Vietnam 51,877 44.2 12,513 India 21,596 18.4 2,435 Germany 9,163 7.8 1,012 Product code 0801 – United Arab Emirates (UAE) Total 193,447 100 86,786 India 156,875 81.8 51,769 Indonesia 11,428 5.9 5,896 Product code 0801– Netherlands imports Total 463,173 100 99,311 Vietnam 271,796 58.7 38,837 Philippines 61,448 13.3 23,520 India 33,127 7.2 4,600 Product code 0801 – Japan imports Total 118,807 100 20,126 India 56,886 47.9 6,903 Vietnam 46,026 38.7 8,240 Source: Trade Statistics for International Business Development https://www.trademap.org/Index.aspx 21 District Export Action Plan- East Godavari

143 6468757/2022/PROG-I-INC01 The above table shows that Netherlands and Spain are immediate target countries where we can conduct feasibility study and gap analysis to address the steps required for increasing the share of exports through volume or value addition. 4.8 Potential Areas for Value Added Products Concentric diversification to the development of Cashew Kernels and their by-products, that are like the ones already in the market for exports. The following steps may be adopted a) To get more product variety. b) More markets are tapped. c) Companies gain more technological capability. d) Economies of scale. e) Cross selling. f) Brand Equity. g) Risk factors are reduced. h) New product line through use of technology By products in the existing product line, say Cashew soup mix, Cashew Powder, Cashew Vita, etc. may be added. Diversification may be brought in the by developing Common facility clusters 4.9 SWOT Analysis for Cashew Kernel Exports Stakeholder’s consultation and feedback is the basis for SWOT (Strength, Weakness, Opportunities and Treats) analysis as detailed in the table below: Table 9: SWOT analysis for cashew kernel exports Strengths Weakness  Over 13,000 ha of cashew plantations is  Initial Investment of raw material is present in the district high  Land is more conducive plantations  Crop growing season is long and  Over 150 Micro and Small units operating in harvesting is seasonal the district  Shortage of raw cashew hence  Established market linkage for 13 countries processing units are importing at for exports higher prices  Connectivity by Road, Rail, and ports  Lack of research & development, quality standards and certification Opportunities Threats  New Cluster with modern mechanised  Competition from Vietnam and secondary processing facility China  Buyer Seller meet for Market linkages  Due to the un-organized sector and  Introduction of new technology for value un-branding, cost of the final added products product is plummeting  Skilling of youth with EDP (Entrepreneur  Owing to shortage of raw cashew Development Program) nuts, they are being imported at very high cost 22 District Export Action Plan- East Godavari

144 6468757/2022/PROG-I-INC01 4.10 Challenges and interventions The Stakeholder consultation / feedback is the basis for challenges and interventions as detailed in the table below. Table 10: Challenges and interventions for cashew kernel exports Parameter Challenges Interventions Raw Material Relatively limited availability  Establishment of warehouse for import, Technological upgradation of Raw Material from district storage, and sale of Raw material which is not enough for preferably for Six months. Propose two processing. The processing storage (infrastructural facility) points units in this district depends on such as Rajamahendravaram and the imports from African countries Kovvur revenue divisions for store storage of raw material and final product.  Increase the plantation of cashew nut tree by providing agricultural infrastructure on subsidized manner like drip irrigation, fertilizers, plants  Advanced machinery in  Exporters /Entrepreneurs requested activities of cashew nut the government to provide machinery processing such as 1. in subsidized price. Cutting 2. Peeling 3. Heating and 4. Packing  Approval /sanctioning of more cashew as tiny units cannot nut processing clusters for availing afford. grant from GOI  For exports, its needs to be packed the product with nitrogen filled vacuum. Skilling For qualitative product, the Trained workers to be added. Capacity of cashew processing units are existing workers to be strengthened Marketing mainly depending on manual Support & cutting of cashew nuts.  Awareness programme on Post GI Branding initiative may be conducted time to  Trademarks, BIS, FSSAI time Once in a Year by DGFT) Quality need to be registered for Improvement exporters. Less no. of  Reimbursement of certification fees for & Certification authorised users due to exporters. lack post GI initiative.  Testing laboratory can be established  No specific GI product in CFC for ensuring production of buyer seller meet in certified quality products. targeted countries. Unaware of global standards and quality ratings.  Collaboration with National institutes to support improving quality and maintaining the standards. 23 District Export Action Plan- East Godavari

145 6468757/2022/PROG-I-INC01 Exporter’s  No focal point to address  Cashew Board or its affiliated branch issue & the grievances of must be established in East Godavari Administrative industries at district level. district to support the exporters and cashew nut products Regulatory  Constitution of product Support specific subcommittee.  To increase number of exporters in this sector, make them registered for  Only 10% of export license on free of cost mode entrepreneurs having export license and 5% of entrepreneurs exports their products to other countries 4.11 Future Outcome Future outcome up to 2025 has been derived based on exports during 2021-22 and timely implementation of the action plan proposed. Table 11: Annual target for cashew export from the district Annual Turnover Increase in 10 % of the annual turnover from existing INR 203 Cr. by 2024-25 Yr. 2021-22 2022-23 2023-24 2024-25 INR Cr. 203 220 242 270 5. Product 2: Coir / Coir Products 5.1 Justification for Coir / Coir Products for District as Export Hub a) East Godavari is famous for agriculture because of fertile lands which are adequately irrigated throughout the year. b) Coir Board has developed as many as 150 coir units in East Godavari district in the year 2011, providing direct employment to about 1,500 labors. c) Great demand for coconut fiber and ropes in the international market. Besides sending their product to the neighboring Odisha and West Bengal, the industrialists are also eying possible exports to Sri Lanka and China. d) In all, about 550 small-scale units are active in the district, from which the fiber and rope are being carted to various places every day 5.2 Product Overview Indian coir industry is an important cottage industry contributing significantly to the economy of the major coconut growing States and Union Territories, i.e., Kerala, Tamil Nadu, Andhra Pradesh, Karnataka, Maharashtra, Goa, Orissa, Assam, Andaman & Nicobar, Lakshadweep, Pondicherry, etc. The exports of coir and coir products in India hit an all-time high in 2020-21 at Rs.3,779 crore (US$ 487 million), an increase of 37% from the previous year. During the same period, the export quantity was 1.16 million metric tonnes (MT), an increase of 17.6% from the previous year, which was 0.99 million MT. The growth of 37% in export value was the highest ever growth for the coir and coir products. 24 District Export Action Plan- East Godavari

146 6468757/2022/PROG-I-INC01 India exports coir pith, coir fibre, tufted mats, handloom mats, power loom mats, coir yarn, coir geotextiles, handloom matting, power loom matting, rubberized coir, rugs, etc. Coir pith is the largest exported coir product from India with 2020-21 exports at Rs.1,919.74 crore (US$.243 million), about 51% of the total coir exports from India during the same period. During April-October 2021, India’s coir and coir products exports were Rs.2,589 crore (US$ 327 million). This was 30% increase from the same period in the previous year. The quantity of exports during April-October 2021 was 0.73 million MT, an increase of 13.5% from the same period in the previous year. Over the period of 10 years (between 2011-12 to 2020-21), the exports of total coir and coir products from India has seen a CAGR of 15%. India exports coir and coir products to more than 100 countries around the globe. During 2020- 21, about 106 countries exported coir products from India. Among these, USA, China, Netherlands, South Korea, the UK, Spain, Australia, Italy, Germany, Canada, Belgium, France, and Israel are some of the top importers. USA is the largest importer of coir and coir products from India, accounting for 19% of the total quantity and 31% of the total value exported from India in 2020-21. China being the second largest importer, accounted for 20.7% of the value and 34.8% of the quantity during the same period. For the coir pith products, the biggest importers during 2020-21 were USA, Netherland, South Korea, China, and Spain (out of a total 94 countries), accounting for 66% of the total exports from India. Figure 5: Country wise share of Coir and coir products from India (2020-21) India exported coir tufted mats to about 77 countries in 2020-21 and out of these USA, the UK, Germany, Italy, and Netherlands accounted for 80% of the export quantity. With 60% of the imports in terms of value and quantity, USA was India's largest top export destination during 2020-21. 25 District Export Action Plan- East Godavari

147 6468757/2022/PROG-I-INC01 China is the largest importer of coir fibre from India, contributing to 96% of the total quantity and 95% of the total value exported out of the country in 2020-21. East Godavari district is one of the leading districts of coir / coir products exports. This is because abundant coconut plantations in the district. The coconut plantation is so popular in the district as almost every farmer grows coconut in his private land. The quality of coconut and coir produced out of coconut is of low quality as coconut species grown here are of low quality due to climatic issues Figure 6: India’s coir and coir products export trend (USD Mn) 5.3 Product Profile It is manufactured from retted coconut husks through a process called defibring. The coir fibre thus extracted is then combed using steel combs to make the fibre clean and to remove short fibres. Bristle coir fibre is used as bristles in brushes for domestic and industrial applications. 5.4 Export Scenario of coir products 5.4.1 HS Codes of coir products A total value of 0.88 Cr. has been exported from the district during 2021-22. The identified HS codes for the export of Coir and other by-products are exported and the percentage of export under each commodity is as tabulated below. Table 12: HS codes for Coir-products HS Code % Contribution Value Product Description of Export INR Cr. 26 District Export Action Plan- East Godavari

148 6468757/2022/PROG-I-INC01 53050010 24% 0.27 Coir Bristle Fibre, Coir Mattress Fibre, Coir Short Fibre 53050030 22% 53050040 54% 0.27 Curled Coir Fibre/Machine Twisted Fibre 100 Total 0.33 Coir Pith 0.88 5.5 Coir / Coir Products Export from East Godavari District The export data of the six Countries for coir and related commodity is about 0.9 Cr. The major importing countries are Nepal, China, Netherlands, Greece, and Benin. Country-wise details are provided in the table below. Table 13: Country-wise Coir / Coir Products Exports during 2021-22 HS CODE Commodity Country Quantity Value Value 53050030 Description NEPAL MT INR Cr. USD Mn CURLED COIR 53050040 FIBRE/MACHINE CHINA 92.19 0.27 0.37 53050010 TWISTED FIBRE NEPAL C0IR PITH 200.1 0.26 0.34 53050040 COIR BRISTLE FIBRE, NETHERLANDS 78.6 0.23 0.31 53050010 COIR MATTRESS GREECE FIBRE, COIR SHORT 26.48 0.08 0.10 53050040 BENIN 19.965 0.04 0.05 FIBRE, C C0IR PITH 0.25 0.00 0.00 COIR BRISTLE FIBRE, COIR MATTRESS FIBRE, COIR SHORT FIBRE C0IR PITH 5.6 Export Potential of coir / coir products In terms of the export potential, countries where the current level of exports is quite low can be prioritized over relatively mature markets for the purpose of market penetration. We may do feasibility and gap analysis to address the steps required for increase the share in exports, through volume or value addition. The profiling of target export markets is as tabulated below: Table 14: Top 5 countries importing Coir / Coir Products during 2021 Exporter Value imported in 2021 Share in country’s Quantity (MT) imported in 2021 World (USD ‘000) imports (%) 667241 India Product code 5305 – China Imports 369050 Tanzania 245425 100 20324 98524 40.1 27 35332 14.4 District Export Action Plan- East Godavari

149 6468757/2022/PROG-I-INC01 Exporter Value imported in 2021 Share in country’s Quantity (MT) imported in 2021 (USD ‘000) imports (%) Product code 5305 – USA imports World 92226162 100 132839 India 71423 77.4 106021 Sri Lanka 14801 16.1 18282 Product code 5305 – France imports Total 5782 100 7589 India 2514 43.5 2998 Sri Lanka 1247 21.6 1267 Product code 5305 – Netherlands imports World 25581 100 52447 India 9975 39 18702 Belgium 5513 21.6 21878 Product code 5305 – Morocco imports World 12554 100 6214 India 59 0.5 69 Kenya 5555 44.2 2701 Source: Trade Statistics for International Business Development https://www.trademap.org/Index.aspx The immediate and long-term target countries, who are top importers of coir / coir products in the world are China, France, Netherlands, and Morocco. Considering these as benchmarking, we can zero down the available opportunities for development of export in the district. 5.7 Value Addition in Coir / Coir Products Concentric diversification to the development of Coir / Coir by-products, that are like the ones already in the market for exports. By products in the existing product line, say Coir geo-textiles (woven and non-woven), enriched coir pith manure, coir bio-filters, coir garden articles, coir handicrafts and coir calendars may be added. Diversification may be brought in the by developing Common facility clusters 5.8 SWOT analysis for coir /coir products exports Stakeholder’s consultation and feedback is the basis for SWOT (Strength, Weakness, Opportunities and Treats) analysis as detailed in the table below: Table 15: SWOT analysis for coir / coir products exports Strengths Weakness  Easy availability of Raw Material  Inferior quality of fibre  Abundant and Efficient Labour available  Raw material used majorly in firing  Multiple products can be manufactured of brick kilns  Eco Friendly Product as it increases the  Unorganized sector resulting in fertility of the soil. poor price appreciation of the  Well connectivity with 2 major ports and product national Highway  Long crop harvesting season  Lack of R&D 28 District Export Action Plan- East Godavari

150 6468757/2022/PROG-I-INC01 Opportunities Threats  No marketing facilities  Increase in demand of Coir products  Floods are a concern for Raw  Rise in local consumption  Govt is increasing support measures for material, Product and Machinery  Low R&D causing issues with this sector  Development of VCIC gives opportunity quality standards and certification  Lack of technology and its for growth and development of coir processing units dissemination  Opportunity to setup more plants under  Low quality of coir existing plantations 5.9 Challenges and interventions Stakeholder’s consultation and feedback is the basis for challenges and interventions as detailed in the table below. Table 16: Challenges and interventions of coir / coir products Parameter Challenges Interventions Raw Material  Lack of Good Quality  Monitoring and Implementation for and R&D Raw material distribution of seeds, should be done effectively by APSCA (Andhra Pradesh Seed Certification Agency) Technological  Lack of R&D Centers  Establishment of Cluster with Secondary processing, Value addition, testing and upgradation and Testing facilities certification facilities Marketing  Lack of Buyer Seller  Establishment of a Marketing centre within Support & Branding meets at district and the CFC (CFC Scheme of MSE_CDP) in Quality state level East Godavari to facilitate marketing Improvement & Certification  Lack of awareness on events. Collaboration with E-commerce How to tie-ups and do companies like Flipkart, Amazon, eBay for joint venture with other maximizing sales. state and counties for  Develop Export portal for state, with secondary processing updated information on the portal as this and value addition portal facilitates the exporters and help their products for easy understanding of exporters.  Conduct awareness workshops at block level to create awareness about schemes which aids individuals/ associations wishing to participate in marketing events  Office of Quality  Create awareness among exporters Certification Standard among quality standards, also signing at District level or MoU with QCI / Other Quality certifying State level agencies in pan India and global quality standards of the products so that their quality can be maintained/ improved, and these can be exported across the globe 29 District Export Action Plan- East Godavari

151 6468757/2022/PROG-I-INC01 Exporter’s  Lack of awareness on with brand logo which ensures its authenticity. issue & the nodal points to  DIEPC to act as a focal point for all Administrative address exporters exporters issues. GM DIC Industries department may be given this and ongoing issues. responsibility to monitor the cell in consultation with DGFT. Regulatory  In line with MSME credit facility Support specialized Banks, similar facility may be made available to exporters as well Credit Support  Lack of adequate  Feasibility study for setting up of ICD credit schemes for  Invite Trading and Custom Houses for exporters interaction with Exporters for proper planning on availability of container and  Length Cumbersome guidance for hassle free exports procedure for Exports Logistic  ICD (Inland Container Depot) in not there  Availability of containers for exporters 5.10 Future Outcome Future outcome up to 2025 has been derived based on exports during 2021-22 and timely implementation of the action plan proposed. Table 17: Annual Target for Coir / Coir Products Export Annual Turnover Increase in 10 % of the annual turnover from existing INR 0.88 Crore by 2025. Yr. 2021-22 2022-23 2023-24 2024-25 INR Cr. 0.88 1.0 1.10 1.21 6. Product 3: Nursery Plants 6.1 Justification for Nursery Plants as District as Export Hub a)There are 1600 Nurseries in the un-organized sector and around 700 nurseries in organized sector with 15 exporting nurseries situated in and around Kadiam. Every year the land area is added to the existing plantations on incremental basis for increasing the nursery production. b)The soil quality and weather conditions including humidity, rainfall and temperature in the district is highly favorable for nursery cultivation. c) The AP Horticultural department has strong footprint of extension services in the district, ably supported by trained personnel for guiding the farmers on advanced farming techniques. 30 District Export Action Plan- East Godavari

152 6468757/2022/PROG-I-INC01 d) Logistically, the district is well endowed as Kadiyam is well connected to 2 major ports- Visakhapatnam and Chennai in addition to Kakinada port. Further, the district is located on the national highway 16 connecting two metro cities Kolkata and Chennai which is developing as a major industrial corridor. e)Rajahmundry Airport is very near to the Kadiam village, and the nursery plants can be exported within hours to the imported countries with major ones as Bahrain, Kuwait, Maldives, Oman and Qatar. The bare root methodology nursery plants can also be exported hassle-free and saving valuable time for the nursery plants which are perishable. f) Increasing demand of medicinal plants in the international market has spurred production of nurseries in the area and is boosting entrepreneurship. g)Kadiyam nurseries are the favored destination of many film directors hoping to picturize their lead actors and actresses in beautiful gardens and in the process bring in additional revenues to the nursery owners. 6.2 Product Overview The exports of Nursery plants from India have grown at a CAGR of 25% from 2017-18 to 2021-22 as shown in the figure below. India's Nursery Exports ( Rs Crores) HS Code 0602 250 229 200 189 Rs. Crores 150 136 138 100 94 50 0 2018-19 2019-20 2020-21 2021-22 2017-18 Figure 7: Trend India's Nursery Plants Exports India exports nursery plants to around 69 countries across the globe and in 2021-22, the major export destinations in terms of share in total exports include Netherlands (36%), USA (15%), Japan (12%), UAE (7%), Italy (6%), Australia (4%) and Canada (4%). The countries where India’s exports are very low and offer opportunities for market growth include Bahrain, Kuwait, Qatar and Turkey, as shown in the table below: Table 18: Top 6 Countries Nursery Plants Exports from India S. No Importing India’s Export Other Competitive Scope of increasing Country Share Countries exports 1 Bahrain 6.90% Spain, Netherlands Huge 2 Kuwait 3.60% Spain, Netherlands Huge 3 Maldives 18.40% Sri Lanka, Netherlands Moderate 31 District Export Action Plan- East Godavari

153 6468757/2022/PROG-I-INC01 4 Oman 24.10% Netherlands, Iran Moderate 5 Qatar 2.00% Thailand, Netherlands Huge 6 Turkey 0.00% Netherlands, Italy Huge Source: Directorate General of Commercial Intelligence and Statistics (DGCIS) 6.3 Product Profile The village Kadiyam located in the East Godavari district has the largest number of nurseries in the State. The nurseries are spread across over an area of 7,000 acres with a radius of 15 kilometers, producing large variety of fruits and flowers having high commercial potential. Temperature hovers around 31° C and at night it feels like 21° C. In December, Kadiyam gets 26.98 mm of rain and approximately 1 rainy day in the month. Humidity is close to 68%. Kadiyam nurseries which generate revenue running into several crores per annum are also facing hardships on two accounts. One is exports and the other is lack of exposure related to research and supply all varieties of plants to any corner of the world and they will also ready produce as per requirements of architects, landscaper & realtors etc. 6.4 Industry Association for Nursery Plants Sir Arthur Cotton Nursery Farmers Association is working for the development of nursery plants in East Godavari District. 6.5 Export Details of East Godavari District for Nursery Plants 6.5.1 HS Codes of Nursery Plants HS code -The identified HS codes for the export of nursery and other by-products are exported and the percentage of export under each commodity is shown in the table below. Table 19: HS codes for nursery plants HS Code Contribution of Value in INR Cr. Product Description Export (%) 06029090 98.82% 5.491 Other live plants 06022010 1.13% 0.063 Edible fruit/nut trees, grafted or not 06024000 0.05% 0.003 Roses grafted or not 100 5.56 Total Most of the exports share from the district mainly accounted as “other live plants’ category. 6.6 Country-wise Nursery Plants Exports from East Godavari District The major exporting countries from the district are UAE, Bahrain, Maldives, Kuwait, Qatar, and Turkey. Country-wise details are provided in the table below. 32 District Export Action Plan- East Godavari

154 6468757/2022/PROG-I-INC01 Table 20: Country-wise exports of nursery plants from East Godavari during 2021-22 HS Code Commodity Country Quantity Value in INR Value in Description (Kg) USD 6022010 Edible Fruit/Nut Trees, Bahrain Grafted or Not 1,497 627981 8531 6024000 Roses Grafted or Not Bahrain 6029090 Other Live Plants Bahrain 100 30418 413 6029090 Other Live Plants Kuwait 923 1317560 17805 6029090 Other Live Plants Maldives 34,015 1397582 18901 6029090 Other Live Plants Oman 700 6029090 Other Live Plants Qatar 472,456 85694 1124 6029090 Other Live Plants Turkey 174605 17829711 238655 6029090 Other Live Plants UAE 24300 109814 Total 814099 8175507 1170240 15702 24933594 333061 55,568,287 744,006 6.7 Export Potential of Nursery Plants In terms of the export potential, countries where the current level of exports is quite low can be prioritized over relatively mature markets for the purpose of market penetration. We may do feasibility and gap analysis to address the steps required for increase the share in exports, through volume or value addition. The profiling of target export markets is as tabulated below: Table 21: Top 5 Countries importing nursery plants during 2021 Exporter Value imported in 2021 Share in country’s Quantity (MT) imported in 2021 Total (USD ‘000) imports (%) Spain 0 Netherlands Product code 6029090 – Bahrain Imports 694 China 251 2867 100 India 224 763 26.6 Total 60 Spain 459 16 Netherlands 436 15.2 India 199 6.9 World Sri Lanka Product code 6029090 – Kuwait imports India 6323 100 0 2683 Netherlands 1795 28.4 380 1759 27.8 123 226 3.6 Product code 6029090– Maldives imports 1278 100 0 585 45.8 0 260 20.3 68111 256 20 126087 33 District Export Action Plan- East Godavari

155 6468757/2022/PROG-I-INC01 Exporter Value imported in 2021 Share in country’s Quantity (MT) imported in 2021 (USD ‘000) imports (%) Product code 6029090 – Oman imports Total 1643 100 0 Netherlands 431 26.2 156 India 397 24.1 66 Iran, Islamic 212 12.9 572 Republic Product code 6029090 – Qatar imports Total 10379 100 Thailand 3119 30.1 241231 (units) Netherlands 2375 22.9 2192 India 204 2 156 Source: Trade Statistics for International Business Development https://www.trademap.org/Index.aspx From the above table, we can draw a conclusion that Bahrain, Kuwait, Maldives, Oman, and Qatar are the immediate target countries, where we may do feasibility and gap analysis to address the steps required for increasing share of exports. 6.8 Value Addition Concentric diversification to the development of new nursery by-products, that are like the ones already in the market for exports. The following steps may be adopted a) To get more product variety. b) More markets are tapped. c) Companies gain more technological capability. d) Economies of scale. e) Cross selling. f) Brand Equity. g) Risk factors are reduced. h) New product line through use of technology Diversification may be brought in by developing common facility clusters. 6.9 SWOT Analysis for Nursery Plants Exports Stakeholder’s consultation and feedback is the basis for SWOT (Strength, Weakness, Opportunities and Treats) analysis as detailed in the table below: Table 22: SWOT analysis for nursery plants exports Strengths Weakness  Fertile Soil. Abundant Water Resources.  Land Cost is high. Seasonal Good Climate Condition Work. Labour cost is more. No infrastructure Facilities like road  7000 acres containing a large variety of Maintenance cost is more fruits and flowers plants concentrated around 15 km radius. Every Year 5000  Pests and pesticides hinder Acres is added to the existing plantations exports due to SPS measures 34 District Export Action Plan- East Godavari

156 6468757/2022/PROG-I-INC01  Trained Persons are available  The packaging technology so that  AP Horticulture department support plants sustain the long duration of logistics measures  Increase demand for Medicinal Plants in  Lack of research and development quality standards and certification international market  Kadiyam is well connected to 2 major  Final Profit depends upon the climate ports Visakhapatnam and Chennai. It is also connected to Kakinada port  Lack of awareness on exports and  The district is located on the national international market is the most highway 16 connecting two metro cities important weakness Kolkata and Chennai. This road is major industrial corridor  The distance between units and ports is more hence logistic issues Opportunities and price increases  Increasing Demand all over the world for Threats Nursery Plants  China, Thailand, Malaysia is  Ports are very near to the district supplying the nursery plants at  Every Household is interested to cheaper prices. decorate their surroundings with plants  New Bacteria spoiling the Nursery  Easy Propagation of Plants Plants.  Investments on Medicinal plants  Environmental Pollution Hampers propagation from the Non-Farming the Cultivation of Nursery Plants Sector also increasing.  Development of VCIC gives opportunity  Poor response from the farmers for for growth and development of cashew propagation of Medicinal Plants processing industry  Opportunity to setup more plants as  Fluctuation of prices in the global Every Year 5000 Acres is added to the market existing plantations  Insecticides, Virus & worms destroying the plants.  High logistics cost 6.10 Challenges and Interventions for nursery Plants Exports The Stakeholder consultation / feedback is the basis for challenges and Interventions as detailed in the table below. Table 23: Challenges and interventions for nursery plants exports S. No. Parameter Challenges Interventions 1 Proper import mechanism for Administrative Harmful bacteria entering disinfecting harmfulbacteria support India through imported coming from the other horticulture plants spreading countries which are pal ntrelated 2 Awareness and affecting exports of horticulture plants Training 3 Quality Best Packaging techniques assurance & for packing of Nurseryplants Proper Checking at Airports Certification export and Ports for parasites Harmful bacteria entering scanning related India through imported to Nursery plants horticulture plants spreading and affecting exports of 35 District Export Action Plan- East Godavari

157 6468757/2022/PROG-I-INC01 horticulture plants 4 Credit Support Financial support for Financial support for purchasing of machinery purchasing of machinery and and others others. Awareness camps regarding financial support 5 Training Packageof Nursery plants for exporting to Training on best practices of other countries packageof Nursery plants to other countries 6.11 Future Outcome Future outcome up to 2025 has been derived based on exports during 2021-22 and timely implementation of the action plans proposed. Table 24: Annual target for nursery plants export Annual Turnover Increase in 10 % of the annual turnover from existing INR 5.56 Crore by 2025. Yr. 2021-22 2022-23 2023-24 2024-25 7.4 INR Cr. 5.56 6.12 6.73 7. Skill Development Government of Andhra Pradesh has set-up Andhra Pradesh State Skill Development Corporation (APSSDC), a PPP section 8, not for profit organisation, with 51% equity stake of private sector and that of 49% Government. APSSDC will act as Executing Agency of Department of Skill Development, Entrepreneurship, and Innovation (SDEI), Andhra Pradesh. APSSDC has initiated many schemes for school dropouts to Engineering and post graduate students. During 2017, APSSDC has established six (6) Siemens Centre of Excellence (CoE) at university colleges and thirty-four (34) Technical Skill Development Institutes (TSDIs) at Engineering colleges for providing engineering skills to the college students in addition to their regular curriculum in association with Siemens. APSSDC has also introduced industry customised skill training (ICST) with industry linkage based on requests from Industries as 1-week soft skills (25 hours) training and 3 weeks On- Job-Training (OJT) at industry. With the result of over 90% placement for industry connect skill development training, APSSDC has adopted a new initiative of conducting industry connect skill development programs in association with industries through 88 Govt. Polytechnic and Industrial Training Institutes (ITI) spreading 73 Assembly constituencies in the state in the current financial year 2022-23. In the next financial year, it would be expanded up to 130 Govt. institutes by ensuring availability of suitable infrastructure. In addition to the above state-run skill development centres, Andhra Pradesh has following central technical institutes on skilling various domain trades: 36 District Export Action Plan- East Godavari

158 6468757/2022/PROG-I-INC01 1. Central Institute of Petrochemicals Engineering and Technology (CIPET), Vijayawada. CIPET provides NSQF aligned CIPET courses approved by NSQC on 37 skill trades in plastic technologies. 2. Central Institute of Tool Design (CITD), Vijayawada. CITD provides NSQF (5 Trades) and Non-NSQF (4 trades) courses. 3. The National Institute of Fisheries Post Harvest Technology and Training (NIFPHTT), Visakhapatnam. The NIFPHATT, erstwhile Integrated Fisheries Project, which is devoted to all-round development of Post-Harvest Technologies. NIFPHATT envisages the best post-harvest fish utilization and consumption with the least post- harvest losses and delivery of the best quality fish and fish products. NIFPHATT offers OJT for college students, Concepts of Sea Food, VAP from freshwater fish, HACCP concepts, Short-term training on VAP, Fish Filleting, VHSE Apprenticeship and VHSE vocational training 4. Central Institute of Fisheries Technologies (CIFT), Visakhapatnam. CIFT organizes regular and adhoc training courses for various categories of stakeholders in different aspects of harvest and post-harvest fisheries. Besides, customized training programmes are also organized based on request from different organizations depending upon the needs and problems of the client. In addition, CIFT also conducts some tailor-made courses like comprehensive training programmes, specialized training programmes and certified courses for different type of stakeholders. 5. MSME Technology Centre at Visakhapatnam under Ministry of MSME, Government of India 6. Indian Institute of Packaging (IIP), Visakhapatnam. IIP provides skilling on products packaging 7. Indo-German Institute of Advanced Technology (IGIAT), Visakhapatnam. IGIAT provides skilling on CNC machining, welding, Solar Panel Installation Technician, CISCO Hardware & Networking, PLC, CATIA, PRO-E and others. The demand for skilled manpower would be identified by the Industries Department as per the consultations held with the exporters. Director, Industries department in coordination with Secretary, Skill Development would ensure skilled manpower is provided as per the demand. 8. Key Schemes 8.1 Key schemes of Government of India (GoI) 8.1.1 Service Exports from India Scheme (SEIS)3 Foreign Trade Policy Under the Service Exports from India Scheme (SEIS), the Duty Credit Scrips are accorded as rewards. The goods imported against the Duty Credit Scrips, or the goods nationally acquired against the Duty Credit Scrips will be transferable freely. Given below is a list of requirements which can be fulfilled using the Duty Credit Scrips: a) Customs Duty payment and fee as per paragraph 3.18 of the policy. b) Customs Duties payment for importing goods or inputs, other than the items mentioned in Appendix 3A 3 https:/ / www.bankbazaar.com/ tax/ service-exports-from-india-scheme-seis.html 37 District Export Action Plan- East Godavari

159 6468757/2022/PROG-I-INC01 c) Excise duties payment on the acquisition of goods or inputs, this includes capital goods according to the DoR notification. d) Service Tax payment upon acquisition of services according to the DoR notification. 8.1.2 Rebate of State and Central Levies and Taxes (RoSCTL) Scheme4 It is an export incentive in the form of transferable and sellable duty credit scrips offered based on the Free on Board (FOB) value of the export. The benefits of Rebate of State Levies RoSCTL are available to exporters of readymade garments and made ups. The scheme aims to help them cut high logistics and other costs and enable them to compete globally. An exporter can benefit from this scheme for all exports done after 1st April 2019. For exports made prior to this date, the eligibility criteria of the RoSCTL scheme would be applicable. The rebate for such exports was allotted out of the RoSCTL scheme fund, on exhaustion of which DGFT would issue scrips, but at RoSCTL rates.5 8.1.3 Advance Authorisation Scheme6 Advance Authorization Scheme allows duty free import of inputs, which are physically incorporated in an export product. In addition to any inputs, packaging material, fuel, oil, catalyst which is consumed / utilized in the process of production of export product, is also allowed. The quantity of inputs allowed for a given product is based on specific norms defined for that export product, which considers the wastage generated in the manufacturing process. DGFT provides a sector-wise list of Standard Input-Output Norms (SION) under which the exporters may choose to apply. Alternatively, exporters may apply for their own ad-hoc norms in cases where the SION does not suit the exporter. Advance Authorization covers manufacturer exporters or merchant exporters tied to supporting manufacturer(s). Duty Free Import Authorization (DFIA) Scheme7 DFIA is a variant to Advance Authorization scheme. It is different from Advance Authorization as a higher minimum value addition of 20% is required, as compared to only 15% in Advance Authorization. It has enabling provision for transferability of authorization or materials imported against it. DFIA can be applied and obtained on post export basis as well. It is popular with exporters who export first and then obtain the Authorization, which can be sold freely. 8.1.4 Rebate of Duties & Taxes on Exported Products (RoDTEP Scheme) The RoDTEP scheme aims to refund all hidden taxes, which were earlier not refunded under any export incentive scheme, such as the central and state taxes on the fuel used for transportation of export products, duties levied on electricity used for manufacturing, mandi tax levied by APMCs, toll tax & stamp duty on the import-export documentation and others. 4 https:/ / www.dgft.gov.in/ CP/? opt=rosctl 5 https:/ / www.dripcapital.com/ resources/ blog/ rosctl-scheme 6 dgft.gov.in/ CP/? opt=advance-authorisation 7 https:/ / www.eepcindia.org/ page.aspx?id=P160411110629&page=Export-Promotion-Schemes 38 District Export Action Plan- East Godavari

160 6468757/2022/PROG-I-INC01 8.2 Schemes under AP State Export Promotion Policy 2022-27 Various schemes being run by Export Promotion Policy to apprise the exporters are as follows: 8.2.1 Marketing Development Assistance Scheme (MDA) Table 25: Schemes under Export Promotion S. Incentive Offered Amount of incentive against total No expenditure 1 Participation in foreign fairs/ exhibitions - 30% subsidy on ground rent Ground Rent 2 Certification charges under ZED scheme 10 % subsidy over the subsidy given by GoI 3 Compulsory marking like CE, GMP, 50% certification cost subject to Max. INR 2 GFSI, etc. Lakhs 9.Action Plan District Export Promotion Action Plan has been derived based on stakeholder’s consultation, state and central Government Policies, SWOT analysis and interventions required with defined responsibilities and timeline. Action plan details are presented in the table below. Table 26: East Godavari District export promotion action plan Quantifiable activity/ intervention Responsible Timeline for authority implementation8 Increasing the overall exports from the state Continuous initiative Sensitization and facilitation in availing Import/ export DIEPC, Continuous documents: APSEPC and initiative Majority of the cluster actors though interested and sensitized DGFT Continuous initiative on exports are unaware of Import-Export Code which is crucial for participating in global trade. While some of them are aware, they face challenges in applying. Thus, at district level, a camp should be set in every three months to help the individuals interested in trade to understand about the requisite documents required for undertaking import/ export and provide support in availing them Creation of an event calendar comprising of events to be DIEPC and conducted in a Financial Year with a focus on international DGFT marketing events. Further, DGFT and FIEO can finalize a target to participate in at least 3 international events in a year per product category/ industry (food, engineering, textile& apparel etc.) by utilizing schemes like International Cooperation (IC), etc. Sensitization of cluster actors: DIEPC and DGFT 8 Short term: Should be initiated within 6 months, Intermediate: to be initiated between 6- 12 months, long terms after 12 months 39 District Export Action Plan- East Godavari

161 6468757/2022/PROG-I-INC01 a. The individuals of a cluster should be sensitized on the DIC and Intermediate plethora of schemes9 available for them for maximizing FIEO the potential of exports. Merchandise Exports from India Continuous Scheme, Service Export from India Scheme etc. provides DIEPC initiative various exemptions for facilitating exports. Further, schemes like Advance Authorization Scheme (AAS), Duty Short-term Free Import Authorization (DFIA Scheme) ensure Continuous procurement of imported duty-free raw materials initiative b. Currently, majority of the exporters and traders focus on Continuous selling their goods to various countries without correctly analysing the demand market. Thus, these cluster actors initiative should be sensitized on target countries identified through Continuous export analysis initiative DIC and FIEO can play a pro-active role in this regard. 10% Short term increase in every year in the number of units taking part in the Short term trade fairs organized by FIEO and other organizations may be Short term proposed as a target under this segment Short term Common Facility centres with to increase export Intermediate Common interventions across sectors/ clusters DoI / IC, Reaching out to Indian Embassies for promotion of 3Ts vi: GoAP Intermediate Trade, Technology Transfer and Tourism APTPC / DoI/ Trades and Events DIEPC Intermediate DoI/ APTPC The demand for skilled manpower would be identified by the Industries Department as per the consultations held with the DoI/ APTPC/ exporters APSSDC Collaboration with APSSDC for skill development on identified APTPC/ skill trades and manpower demand at district level DIEPC Collaboration with e-commerce companies like Amazon, eBay, APTPC/ Flipkart etc. DIEPC MoU with Quality Council of India (QCI) for defining quality APTPC/ standards of the products DIEPC Collaboration with Indian Institute of Packaging (IIP) to define APTPC/ cluster-wise packing standards DIEPC and Sensitization of banks and bankers to help them understand the Banks niche sectors of MSME and their specific requirements which shall help banks evaluate projects better while lending credit DIEPC, Introduction of revolving working capital within the cluster to help MSME MSMEs to procure raw materials and undertake production Corporation without hinderances and Banks Tie up with the banks/ financial institutions (SIDBI, BoB etc.) for APTPC/ better interest rates, enhanced working capital limits etc. DIEPC and Handholding of MSMEs for increasing their awareness on Banks schemes of state & centre and the procedure to apply to avail DIEPC/ GM financial assistance DICs 9 List of available schemes facilitating exports: https:/ / cdn.s3waas.gov.in/ 40 s3555d6702c950ecb729a966504af0a635/ uploads/ 2020/ 12/ 2020120965.pdf and https:/ / www.ibef.org/ blogs/ Indian-export-incentive-schemes: District Export Action Plan- East Godavari

162 6468757/2022/PROG-I-INC01 Sensitization of cluster actors on Make in India initiative and PLI DIEPC/ GM Short term for leveraging the assistance provided to the sector to enhance DICs Long term productivity and expand exports Long term DIEPC to act as a focal point for all exporters issues. GM District DIEPC/ Long term Industries Centre may be given this responsibility to monitor in DGFT Short Term consultation with DGFT Tourism promotion as Invisible export by exhibiting Export/ APTPC, AP Long term service commodities of the district in tourism events and portal, Tourism vice versa promoting tourism in Export promotion events Long term Technology Transfer for productivity improvement and improved Authority, DoI revenue generation DoI/ APTPC/ Long term Short term Sector Specific committee including officials from concerned Industry departments, concerned industry representatives may be Association Long term formed to understand the needs and provide suggestions. Long term DIEPC / Long term Concerned Short term Depts/ 41 Concerned Industry Representati ve a. The DIC office should organize workshops for exporters to DIEPC/ apprise them about Foreign Trade Policy benefits viz. Duty APTPC Exemption Scheme / Advance Authorization Scheme / Duty Free Import Authorization Scheme. DIEPC/ APTPC b. The DIC office should organize workshops for exporters to apprise about Export Promotion Scheme of the Department DIEPC/ GM of MSME & Export Promotion, AP such as Market DIC Development Assistant (MDA), Financial Assistance for Foreign fairs/ exhibition, Financial Assistance for sending DIEPC/ GM samples to foreign buyers DIC / FIEO c. CONCOR rates are to be made available at regular intervals to the DIC office for updation of the same at the district website. d. Formation of the Sub-committee comprising the representative of CONCOR and GM District Industries Centre to understand the issue and suggest ways to help Industry. Ease in Logistics, such support from FIEO may be developed, provide information about container availability and issues relating to it. The industry Dept, Export division may be informed of this. Product 1: Cashew / Cashew Kernel DIEPC, Establishment of Common Facility Centre with: DGFT and a. Space to showcase products to undertake sale APTPC b. Marketing centre for undertaking marketing events APTPC/ Collaboration with National Institute of Design (NID) for design DIEPC inputs and support in branding initiatives Product 2: Coir Products DIEPC and Establishment of Common Facility Centre with: APTPC a. Space to value addition products training b. Marketing centre for undertaking marketing events APTPC/ DIEPC Collaboration with E-commerce companies District Export Action Plan- East Godavari

163 6468757/2022/PROG-I-INC01 Establishment of testing laboratory DIEPC/ Long Term Establishment of Design and innovation centre APTPC Long Term DIEPC/ Product 3: Nursery Plants APTPC/ Long term Establishment of Common Facility Centre (CFC) Industry Short term Associations Collaboration with E-commerce companies like Big Basket, Nature Basket etc. APTPC/ DIEPC/ Industry associations APTPC and DIEPC / Industry Status and suggestions for incorporation in the District Export Action plan on Export Performance Indicators is Annexed below. 10. Treatment of Exports under GST Act 1. Introduction: The export of goods or services is considered as a zero-rated supply. GST will not be levied on export of any kind of goods or services. Section 2(5) and Section 16 of the IGST Act, 2017 describes about Exports in GST. 2. Meaning of Export:  Export of goods under GST (Section 2(5) of IGST Act, 2017): ‘With its grammatical variations and cognate expressions, means taking goods out of India to a place outside India’ Export essentially means trading or supplying of goods and services outside the domestic territory of a country.  Export of services under GST (Section 2(6) of IGST Act, 2017): “Export of services” means the supply of any service when, - i. the supplier of service is in India. ii. the recipient of service is located outside India. iii. the place of supply of service is outside India. iv. the payment for such service has been received by the supplier of service inconvertible foreign exchange. v. the supplier of service and the recipient of service are not merely establishments of a distinct person. 42 District Export Action Plan- East Godavari

164 6468757/2022/PROG-I-INC01 Supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees, is exempted even if the payment is received in Indian Currency. 3. Treatment of Export under GST Under GST, export of goods or services are treated as follows: a. Inter-State supply are covered under Section 7(5) of IGST Act i.e., verbatim. Export of goods or services are treated as Inter-state supply under GST and accordingly, IGST is charged on export. b. ‘Zero rated supply’ are covered under Section 16(1) of IGST i.e., the exported goods or services shall be relieved on GST and levied upon either at the input stage or maybe at the final product stage. 4. Zero Rated Supply (Section 16 of the Integrated Goods and Services Tax Act, 2017): 1. \"Zero rated supply\" means any of the following supplies of goods or services or both, namely: - a) Export of goods or services or both b) supply of goods or services or both for authorized operations to a Special Economic Zone developer or a Special Economic Zone unit. 2. Subject to the provisions of sub-section (5) of section 17 of the Central Goods and Services Tax Act, credit of input tax may be availed for making zero- rated supplies, notwithstanding that such supply may be an exempt supply. 3. A registered person making zero rated supply shall be eligible to claim refund of unutilized input tax credit on supply of goods or services or both, without payment of integrated tax, under bond or Letter of Undertaking, in accordance with the provisions of section 54 of the Central Goods and Services Tax Act or the rules made thereunder, subject to such conditions, safeguards and procedure as may be prescribed: Provided that the registered person making zero rated supply of goods shall, in case of non- realization of sale proceeds, be liable to deposit the refund so received under this sub-section along with the applicable interest under section 50 of the Central Goods and Services Tax Act within thirty days after the expiry of the time limit prescribed under the Foreign Exchange Management Act, 1999 (42 of 1999.) for receipt of foreign exchange remittances, in such manner as may be prescribed. 4. The Government may, on the recommendation of the Council, and subject to such conditions, safeguards, and procedures, by notification, specify- a. A class of persons who may make zero rated supply on payment of integrated tax and claim refund of the tax so paid. b. A class of goods or services which may be exported on payment of integrated tax and the supplier of such goods or services may claim the refund of tax so paid. 43 District Export Action Plan- East Godavari

165 6468757/2022/PROG-I-INC01 5. Process for claiming a GST refund: Step 1: The application for GST refund must be forwarded to the proper officer with all the documents above mentioned. It must include i. A statement containing the date and number of invoices and the Bank Realization Certificates or, Foreign Inward Remittance Certificates. The officer shall within 3 days of filing, issue an acknowledgment, in Form GST RFD-02. Step 2: The officer shall make an order, in Form GST RFD-04, sanctioning the amount of refund on a provisional basis, within a period of 7 days from filing of the application. Step 3: The officer will issue payment advice, in Form GST RFD-05 which will be electronically credited to the bank account of the applicant as mentioned in the application. Ninety percent of the amount is credited at this stage. Step 4: Remaining ten percent of the amount is payable after a scrutiny of the documents (verification of all physical documents with the available online data in the GST portal). Then form GST RFD-06 will be issued sanctioning the balance ten percent amount if all the documents are found in order with the online data available in the GST portal. In case of supply of goods, a claim must be filed within, expiry of 2 years from the date of exports. Exporters of services: a. The date of completion of services, or b. The date of receipt of the advance, in cases where, the advance has been received prior to the date of issue of invoice. Typically, therefore, if a service exporter receives an advance, it is beneficial for him to apply, at that stage itself. In case of delays of the refund due,  Cases beyond sixty days will get an interest at the notified rate not exceeding 6% till the date of refund if the refund has been sanctioned.  Cases which may be adjudicated by Appellate or Adjudicating authority interest shall be paid at the notified rates not exceeding 9% till the date of refund. 6. Claiming of Refund: According to Section 16(3) of the IGST Act, person making a Zero-Rated Supply can opt for any of the following two options: i. To supply goods or services under a bond or, a Letter of Undertaking (LUT) without paying IGST and then claim a refund of unutilized ITC; or 44 District Export Action Plan- East Godavari

166 6468757/2022/PROG-I-INC01 ii. To supply goods or services on payment of IGST and then claim the GST refunds of such tax paid. The shipping bill of the goods will itself be treated as an application for refund. The manufacturers will get refund directly into their bank account and no separate application is required in this process. Further, the refund will be credited directly to the bank account of the exporter registered with the customs even if it is different from the applicant’s bank account mentioned in his registration particulars. The process is different for the service exporters. The service exporters cannot get a direct GST refund into their bank accounts. For getting a refund, the service exporter must file a set of documents with the jurisdictional GST officer where the company is situated. 7 Documents required by the Exporter of the Services to be filed for getting a GST refund: i. A covering Letter ii. Bank Realization Certificates or Foreign Inward Remittance Certificates iii. Export Invoices iv. Form GSTR 3B and GSTR 1 v. Application for Refund in the Form GST RFD 01 vi. Cancelled cheque vii. If GST refunds claims exceed ₹2 lakhs (₹200,000 or ~$3,000) per quartera certificate from a Chartered Accountant/Cost Accountant. All the above-mentioned documents are all mandatory, GST refund cannot be claimed without these documents. 8. Different Scenarios of claiming of Refund under GST: An exporter dealing in zero-rated goods under GST can claim a refund for zero- rated supplies as per the following options: Option 1: Supply goods or services, or both, under bond or Letter of Undertaking, subject to such conditions, safeguards and procedure as may be prescribed, without payment of integrated tax, and then claim a refund of unutilized input tax credit. The exporter needs to file an application for refund on the common portal either directly or through the facilitation centre notified by the GST commissioner. An export manifest or report must be filed under the Customs Act prior to filing an application for refund. Option 2: Any exporter or United Nations or Embassy or other agencies/bodies as specified in section 55 who supplies goods or services, or both, after fulfilling certain conditions, 45 District Export Action Plan- East Godavari

167 6468757/2022/PROG-I-INC01 safeguards and procedures as may be prescribed; and paying the IGST, can claim refund of such tax paid on the supplied goods or services, or both. The applicant must apply for the refund as per the conditions specified under section 54 of the CGST Act. An exporter is required to file a shipping bill for the goods being exported out of India. In this case, the shipping bill is considered as a deemed application for refund for the IGST paid. It would be deemed to have been filed only when the person in charge of the shipment files the export manifest or report, mentioning the number and date of the shipping bills. Electronic as well as manual shipping bill formats are amended by the department to include GSTIN and IGST. The modified forms are available on the official department website. The Department is also in the process of relaxing the factory stuffing procedure and necessary permissions, to give a boost to the Indian export industry under GST. 46 District Export Action Plan- East Godavari

168 6468757/2022/PROG-I-INC01 11. Annexure 1: Export Performance Indicator (EPI) 2022 As per the State Export Promotion Committee, included the following export performance indicators (EPI) for Andhra Pradesh according to the guidelines of Government of India. Table 27: EPI indicator of Andhra Pradesh S. No EPI Indicator 2022 Status/ Suggested for incorporation in the District 1.1.1 1.1.2 Export Action plan 1.1.3 1.1.3. Does state have a valid export State has export promotion policy and sectoral A 1.1.4 promotion policy/ strategy? interventions at District and product level will be 1.1.5 1.1.5. (Yes or no) identified and implemented. A Does state have a valid sector- 1.1.5. B specific policy for exports? 1.1.6 (Yes/No) 1.1.7 District-level Export Action District level action plan is being prepared for 3 Districts 1.1.8 Plan and top 3 products have been identified. Export action 1.2.1 How many districts are plan for all districts will be prepared in a phased manner. 1.2.2 covered under district export action plan? Has the State identified thrust Thrust sectors/ products have been identified at district sectors for exports? (Yes/No) level Product quality and standards Whether there is information Product Quality assessment framework of top identified publicly available in the form of product will be made available on single desk portal and FAQs or website regarding information like FAQ, contact details of service quality requirements to be providers for quality enhancement will be provided compiled in export items? product wise. (Yes/No) Are there any workshops Product and Packaging quality workshop and webinar conducted for generating will be frequently conducted at State and District level awareness on compliance of for identified products. quality requirements? (Yes/No; Details) Marketing Support: Does state Fiscal and Non-Fiscal supports is provisioned for government provide any form participation and setting up stalls in international events of marketing support for and Exhibition products and services in international market? (Yes/No) Facilitation measures around State Government will organise District level Exporter export promotion: Does state awards, every quarter on achievements in areas of conduct any awards for intervention at product level. excellence in exports? (Yes/No) ODOP - District export plan: All the 26 District has been covered under ODOP How many districts of the State Scheme are covered under ODOP scheme? Appointment of full-time export AP Trade Promotion Corporation (APTPC) is mandated Commissioner: Has the State to promote exports under guidance of Export appointed an Export Commissioner Commissioner? (Yes/No) Does the State have a State- AP Trade Promotion Corporation (APTPC) will provide Centre coordination cell? dedicated support to DICs and Exporters for each of (Yes/No) focus product. 47 District Export Action Plan- East Godavari

169 6468757/2022/PROG-I-INC01 S. No EPI Indicator 2022 Status/ Suggested for incorporation in the District 1.2.3 Export Action plan International access: Does the 1.2.4 Government Export Promotion Details of domestic events/ workshops/ B2B meetings 1.2.4. website provide details of will be made available in Single window under 'Buy from A domestic AP' Campaign 1.2.5 events/workshops/B2B 1.2.5. meetings? (Yes/No) DEPCs has been in existence in every district of the A Existence of DEPCs state All the 26 District has DEPC, supporting the traders 2.1.1 How many districts in the State 2.1.2 have District Export Promotion AP Single Desk poral has a mechanism for Grievance 2.1.2. Council (DEPC)? redressal A Grievance redressal As above 2.1.3 Whether State has a functional State is a top achiever in EoDB ranking online grievance redressal Investor Summit organised annually 2.1.4 portal along with tracking INR 11,992 Cr of MoUs and Investment from 3177 system? Yes/No MSME Units and INR 22,29,473 Cr of MoUs and 2.1.5 Ease of doing business index investment from 3,180 non-MSME units Investor Summits ~ 7 Rs per unit 2.1.6 Investor summits: What is the 2.1.7 value of MoUs/LoIs signed per State Single Window has all export related summit in the past three approvals/licenses/clearances/NOC 2.1.8 years? Power cost: What is the power All reforms proposed by Govt. of India under Ease of 2.2.1 cost for HT (high tension) of Doing Business have been implemented. industry from tariff order? 2.2.2 Single-window clearance- INR 4,056 Cr from Oct 2019 to June 2022 (DPIIT Does State has single window website) Vs INR 3,796 Cr from oct 2019 to March 2022 portal for exporters for securing To be updated all business-related approvals/ licenses/ clearances/NOC? To be updated (Yes/No) Labour reforms: How many To be updated reforms have been implemented under BRAP- 24/7 high speed internet facility will be provided at Labour regulation enablers? district level cluster What is the increment of FDI inflow in a state? Banking facilities: Bank Branches per lakh of population Export credit to exporters: What is the export credit given by banks as a percentage of GSDP? Power Availability: Peak Electricity Demanded minus Peak Electricity Supplied Internet facilities 48 District Export Action Plan- East Godavari

170 6468757/2022/PROG-I-INC01 S. No EPI Indicator 2022 Status/ Suggested for incorporation in the District 2.2.3 Export Action plan 2.2.4 Industrial land as % of total 2.2.5 area To be updated 2.2.6 Cluster Strength Power, Connectivity, water, internet, R&D, Residence, 2.2.6. Hospital, School, Warehouse, and storage A Number of IT Parks/ Software To be updated 2.2.6. Technology Parks/ Food Parks Cluster level cold storage facility will be provided B Cold Storage Facility 2.2.7 What is the number of Cold Srini Mega Food Park, Chittoor and Godavari Mega 2.2.7. storage facilities in a state? Aqua Park, West Godavari are operational A What is the capacity of Cold A gap assessment of warehousing facilities will be made 2.2.7. storage facilities (in MT)? as per top products at respective district will be made B Warehouses facility and addressed through Central Government and State 2.3.1 What is the number of Government Schemes 2.3.2 warehouses? 2.3.2.1 To be updated What is the capacity of 2.3.2.2 warehouses (in MT)? To be updated LEADS index MMLH will be developed at district level 2.3.2.3 Multi-Modal Logistics Hubs (MMLH) State has suitable number of MMLH 2.3.3 Whether a state has 2.3.3.1 operational MMLH, if yes how To be updated many? 2.3.3.2 Whether state uses MMLH of Air Cargo facilities is in Vishakhapatnam other states? (This question To be updated 2.3.4 weightage would be applicable 2.3.4.1 to only those states which do To be updated 2.3.4.2 not have MMLH) Whether State has Free Trade State has ICDs facility enhancing the reach to 3.1.1 Zones (FTZ), Free Trade international market Warehousing Zones (FTWZ) 20 ICDs/ CFS are available in AP (Dept. of Commerce) and Integrated Logistics Parks, if yes how many? To be updated Air Cargo facilities What is the number of Information relevant to exporters are made available in Operational Air cargo the single window portal terminals? How much cargo is handled at 49 Air Cargo terminals in million tonnes? ICD's What is the area covered by ICDs in a state? How many cargos are delivered using ICD facilities in a state? Does the State have online portals for disseminating knowledge and information for exporters? (Yes/No) District Export Action Plan- East Godavari

171 6468757/2022/PROG-I-INC01 S. No EPI Indicator 2022 Status/ Suggested for incorporation in the District 3.1.2 Export Action plan What is the area covered 3.1.3 under Export Promotion To be updated 3.1.4 Industrial Parks, Export 3.2.1 Promotion Zones and Special Trade Guide is available in the single window portal 3.2.1. Economic Zones (as To be updated A percentage of State area)? 3.2.1. Does a Trade guide exist? TIES is applicable in the State and Traders may apply B (Yes/No) for it 3.2.2 What is the number of Agri- 3.2.2. Export Zones? To be updated A Trade Infrastructure for Export Two projects were approved in FY21 (PIB) 3.2.2. Schemes (TIES) B Have the states applied for Trade fairs and exhibitions will be organised semi- 3.2.3 TIES scheme? annually at International Level Projects approved under Trade To be updated 3.2.4 Infrastructure for Export Schemes (TIES) To be updated 3.3.1 Trade fairs and exhibitions 3.3.2 Export promotion and warehouse workshop are What is the number of trade regularly organised across the state. 3.3.3 fairs and exhibitions conducted 3.3.4 by the State Government To be updated What are the total sales values 4.1.1 from Trade exhibition centres To be updated 4.1.2 in a year? To be updated 4.1.3 What is the number of capacity 4.1.4 building or orientation To be updated workshops for the exporters To be updated organized by the State? What is the total number of To be updated membership of exporters as a To be updated % of total exporters in trade To be updated promotion council / agencies? To be updated What is the Number of NABL accredited labs? What is the number of NABCB certification Inspection agencies? Innovative capacity: India Innovation Index scores Research institutes per lakh of population: No of R&D institutes dedicated to Industry/Export Specific Products Import Export Code (IEC) [as a percentage of total business] Export growth in 3 years Manufacturing exports to GDP ratio Service exports to GDP ratio 50 District Export Action Plan- East Godavari