The Aryavarth Express
Agency(NEW DELHI):India, the world’s second-largest producer of staples like wheat, rice, and sugar, has seen a slight decline in its agricultural food exports in the financial year 2023/24, totaling about $50 billion. This decline is partly due to domestic export curbs aimed at controlling rising local prices, which have impacted food exports by an estimated $5 to $6 billion according to Commerce Ministry official Rajesh Agrawal.
Despite these challenges, efforts to diversify export destinations to include the United States, Europe, and other markets have helped mitigate some of the negative impacts. The government has been promoting a broader array of farm products, including oilseeds, fruits, vegetables, and processed foods, in an attempt to reduce dependence on a few key commodities.
The geopolitical landscape and global demand slowdown have also played a role in dampening overall merchandise exports, which have fallen for the first time since the 2020/21 fiscal year. Contributing factors include the ongoing Russia-Ukraine conflict and the Red Sea shipping crisis.
However, there have been positive developments in specific sectors: exports of basmati rice, for example, surged to $5.2 billion by the end of February, marking a 22% increase from the previous year, driven by rising global prices.
The government, through the Agriculture and Processed Food Products Export Development Authority (APEDA), is focusing on increasing the market share of various high-potential agricultural products in developed countries. These efforts have resulted in a 14% increase in fruit and vegetable exports to $3.7 billion and a 12.4% rise in meat, dairy, and poultry exports to $2.8 billion in the 2023/24 fiscal year.
This strategic pivot aims to enhance India’s presence in the $400 billion global market for agricultural products, where it currently holds a modest 2.23% share, with ambitions to reach 4% to 5% in the coming years.