Friday, 17 May, 2024
By: Yash Gupte
The main contributors to the record exports of agricultural produce include basmati rice, registering a 16 percent increase in value terms followed by fresh vegetables which recorded a growth of 25 percent. Image Source: IANS
According to government figures, India has also evolved into a net exporter of agricultural goods, with exports reaching an all-time high of $50.2 billion in 2021–22
According to Agricultural and Processed Food Products Export Development Authority (APEDA), the exports of agricultural produce in the first three quarters of the current financial year touched a record $20 billion, registering a 12.6 percent year-on-year increase. The main contributors to the record exports of agricultural produce include basmati rice, registering a 16 percent increase in value terms followed by fresh vegetables which recorded a growth of 25 percent. But, these were only a part of the big picture as the exports were heavily dominated by pulses. The export of pulses from India registered a whopping 92 percent year-on-year jump. US, UAE and China were the largest exporting destinations.
According to government figures, India has also evolved into a net exporter of agricultural goods, with exports reaching an all-time high of $50.2 billion in 2021–22. According to trade experts, India's shift in emphasis from domestic food security to exports has fueled international sales. For the first time in 2021–2022, farm exports as a percentage of all merchandise exports exceeded 11 percent. The agriculture sector is the largest source of livelihood in India. The country is one of the largest producers of agriculture and food products in the world. India’s agriculture sector growth rate was estimated to grow at 3.9 percent in 2021-22 as compared to the 3.6 percent in the 2020-21.
West Bengal, Uttar Pradesh, Punjab, Gujarat, Haryana, Madhya Pradesh, Assam, Andhra Pradesh, Karnataka, and Chhattisgarh are the top states in India accounting for agricultural production. Most of the wheat produced in the country comes from Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar and Gujarat. In terms of sugarcane production, Uttar Pradesh is the largest producer contributing 48 percent followed by Maharashtra with 23 percent and Karnataka (9 percent).
In case of fresh vegetables, onion has registered a consistent increase in exports in last three years. In 2019-20, onions worth $0.32 billion were exported from India. The exports of onion increased to $0.38 billion in 2020-21 and the exports further jumped to $0.46 billion in 2021-22.
*First three quarters of the current financial year
The data clearly indicates that there has been an exponential increase in the export of APEDA products which include fruits and vegetable seeds, fresh vegetables, dry fruits like walnuts and cashews, fruits, processed fruits, juices & nuts, pulses, buffalo meat, dairy products, poultry products, honey, rice, wheat and maize. Agricultural products worth $16.69 billion were exported from India in 2019-20. The exports jumped to $24.74 billion in 2021-22, registering an increase of around $8 billion. The current financial year i.e. 2022-23 is one of the most fruitful year for the exports of agricultural products as the exports have touched the mark of $20 billion in first three quarters. This shows that the exports made in the first three quarters of current financial year have already surpassed the total exports of agricultural products made in 2019-20 and 2020-21.
Rice is the largest exported agricultural product from India. Rice (basmati and non-basmati) worth $6.34 billion was exported in 2019-20. The exports of rice jumped to $9.66 billion in 2021-22. Rice is followed by buffalo meat in terms of exports. In the year 2021-22, buffalo meat worth $3.30 billion was exported from India. The largest employer in the nation, the agriculture sector, has risen at an average annual growth rate of 4.6 percent over the past six years, according to the annual Economic Survey, which was released on January 31.
The government's commitment to enhancing farmers' income can be observed in the sharp increase in agri-exports that were seen as a result of its emphasis on fostering exports. APEDA has been used by the government to carry out a number of projects, including the organisation of B2B exhibitions in other nations and the exploration of new prospective markets through product-specific and general marketing campaigns. The Indian government has recognised 220 labs to offer services of evaluating a wide range of products to assist exporters throughout India. It has also built a products matrix for 50 agricultural products with a great export potential. In order to provide a boost to agriculture exports, the Government of India introduced a comprehensive Agriculture Export Policy in 2019. The Government also brought out a new Central Sector Scheme – ‘Transport and Marketing Assistance for Specified Agriculture Products’ for providing assistance for the international component of freight, to mitigate the freight disadvantage for the export of agriculture products and marketing of agricultural products. Trade Infrastructure for Export Scheme (TIES), Market Access Initiatives (MAI) Scheme and Merchandise Exports from India Scheme (MEIS) are also some of the government schemes for increasing agri exports.
Most of the agricultural products are exported through loading containers on ships but recently air transportation has emerged as a new alternative. The Airports Authority of India now fully waives landing, parking, and terminal navigational landing fees for freighters and passenger-to-cargo aircraft in 25 airports in an effort to increase the number of agricultural produce exports made by air.
Talking about APEDA, it was established by the central government in 1985. It functions under the Ministry of Commerce and Industry. The Authority has its headquarters in New Delhi. APEDA is mandated with the responsibility of export promotion and development of the scheduled agricultural products. It oversees the growth of industries related to the scheduled export products by offering financial aid or another kind of support for conducting surveys and feasibility studies, as well as by taking part in subsidy programmes.
