EXIM Bank EXIM Bank to recommend Sikkim to get GI certification on home grown products

Gangtok, August 28: The Export Import Bank of India better known as EXIM Bank has observed that agro-based, horticultural products and floriculture products of Sikkim has a comparative advantage from an export perspective due to the agro-climatic variety of the State.

The EXIM bank also advised the State government to ensure value addition to these products for them to fetch international market and accruing revenues.

The observations and suggestions were made by EXIM Bank today in a study report ‘Sikkim-Export Potential and Prospects’ which was released by Chief Minister.

Pawan Chamling at a seminar on ‘Export Potential of Sikkim’ held here in the Capital.

Mr. Chamling was the chief guest and Lok Sabha member from Sikkim PD Rai was present as the guest of honour.

In his address, the EXIM Bank Chairman TC Venkat Subramanian pointed out that the Himalayan State grows 90 per cent of large cardamom of the country, a substantial quantity of ginger, and horticulture produces like orchid flowers with all these produces being in demands in foreign countries.

Besides, the State has created its own niche in the domestic market as the producer of various handicraft products like the carpets, woollen garments, toys and wooden items, said Mr. Subramanian, adding these products have good demands in foreign countries which the State government can tap by way of export to earn substantial revenue.

Mr. Subramanian said a research team was set up for the study after a day long seminar held in Sikkim last year to find out where Sikkim’s strength lay as far as exports were concerned. He recommended that the State Commerce & Industries department set up a separate export unit to facilitate exports and tie up with other export agencies.

The EXIM Bank chairman recommended that the State government should ensure value addition to these products by obtaining Geographical Identification (GI) certificate for them to maintain their distinct identity for the purpose of export.
The bank will give 50 per cent assistance to the State government towards the expenses on GI certification on various home grown products of Sikkim, Mr. Subramanian said, adding that it will also provide other assistance to the State to market the local products internationally. The State government should take up measures for improvement of the quality of various produces earmarked for export by tying up with the Indian Council of Agriculture Research (ICAR) for identification of various crops suitable for the local climate and supply of high quality seeds for various crop, he suggested.

In its report, the EXIM bank has mentioned that among the products which have good potential for exports include large cardamom, orchids, Temi Tea, ginger, Mandarin orange, medicinal plants, honey and handicrafts.

Mr. Subramanian also said that the study observed that the cultivation of gherkins and Avocado could be undertaken on a wide scale considering the availability of suitable climate and soil type in Sikkim.

The report has also suggested formulation of a viable export strategy for the state of Sikkim which could encompass issues like creation of a conducive trade environment through inter alia, develop alternate connectivity channels to the state and enhancing lists of products that can be traded through the Nathula pass, promoting local entrepreneurship in the state, create a centralized umbrella public-private partnership body which exclusively works on the development of ‘Brand Sikkim’ strategies at the production level.

The study also advocates creation of processing units in the private sector and enhancing processing capability through collaboration with major food processing chain or a large corporation.

The seminar was organized in association with the State Commerce & Industries department and the Sikkim Chamber of Commerce