Rama Krishna Sangem
India is now aiming to diverse its agricultural exports, in the wake of Trump imposed tariffs up to 50 per cent from August 27. Even with the lower side 25 per cent tariff, our farm exports may not be able to make it to the US in near future. There is a view that we should diversify our farm exports to new markets and enhance our quality standards to meet the importers levels.
India’s agricultural exports grew by 6.5% to USD 37.5 billion (Apr-Dec 2024), while imports rose by 18.7% to USD 29.3 billion that has reduced the agricultural trade surplus.
What are the Trends in India’s Agricultural Exports? Shift in Cotton Trade: India is now a net importer of cotton, reversing its earlier status as an exporter. From being 2nd-largest exporter after the US, India’s cotton exports fell from USD 4.3 billion in 2011-12 to USD 1.1 billion in 2023-24.
Shrinking Agricultural Trade Surplus: India’s agricultural trade surplus peaked at USD 27.7 billion in 2013-14, fell to USD 16 billion in 2023-24. Impact of Global Commodity Prices: Between 2013-14 and 2019-20, falling global food prices reduced India’s agri-export competitiveness. Post Covid-19 and the Russia-Ukraine war, prices surged, boosting exports to USD 53.2 billion in 2022-23.
Major Export Commodities:
Rice exports, especially non-basmati, remained strong despite a ban on white rice and export duty on parboiled rice. Basmati rice, spices, coffee, and tobacco exports are set to reach record highs in 2024-25. Cash Crops: Coffee and tobacco exports surged due to adverse weather affecting key producers like Brazil, Vietnam, and Zimbabwe.
India has also consolidated its position as the world’s leading exporter of chilli, mint products, cumin, turmeric, coriander, fennel, etc.
In 2023, India exported USD 48 billion in agri-products, with the Global South (75%) and Asia (58%) as key markets. China and the UAE each imported USD 3 billion each in Indian agri-products, while Vietnam imported USD 2.6 billion. Africa: Africa accounted for 15% of India’s total agri exports.
The US accounts for 13.4% of Indian agri exports primarily consisting of rice (Basmati & Non-Basmati), sesame seeds, and fresh fruits. Europe accounts for 12.6% of Indian agri exports primarily consisting of tobacco, fresh fruits and ornamental plants.
Srihari Kotela: “We must meet global standards”
“India has huge potential to export its agricultural products across the globe. Even if we are to forego the US market in near term, we need not worry. We can improve our exports by raising our quality of exports to meet the global standards,” said Srihari Kotela, founder of Global Academy for Food Safety and Sustainable Standards (GA-FSSS).
GA FSSS, a Hyderabad based firm that strives to educate, train and skilling of farmers and people involved in agriculture exports estimates that the missing of American markets can be made up with those of other geographies. Srihari Kotela told Excel India that GA-FSSS is spreading its activities to meet the challenges in the agriculture exports.
