Wednesday, 09 Oct, 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
India has developed into a net exporter of agricultural products, with exports reaching an all-time high of $50.2 billion in 2021–22, according to government statistics.
According to the Agricultural and Processed Food Products Export Development Authority (APEDA), agricultural produce exports reached a record $20 billion in the first three quarters of the current fiscal year, a rise of 12.6 percent compared to the same period last year. The primary contributions to the record exports of agricultural products are fresh vegetables, which had a gain of 25 percent and basmati rice, which saw a value-terms increase of 16 percent. They, however, only made up a small portion of the overall picture because pulses predominated the exports. The export of pulses from India registered a whopping 92 percent year-on-year jump. The top exporting destinations were the US, the UAE, and China.
India has developed into a net exporter of agricultural products, with exports reaching an all-time high of $50.2 billion in 2021–22, according to government statistics. Trade experts claim that India's concentration on exports rather than local food security has provided a boost to foreign sales. Farm exports as a share of all exports of goods exceeded 11 percent for the first time in 2021–2022. The agriculture sector is the largest source of livelihood in India. India is one of the world’s top producers of agricultural and food products. According to estimates, India's agriculture sector was expected to grow by 3.9 percent in 2021–22 as compared to 3.6 percent in 2020–21.
The states accounting for maximum agricultural production are West Bengal, Uttar Pradesh, Punjab, Gujarat, Haryana, Madhya Pradesh, Assam, Andhra Pradesh, Karnataka, and Chhattisgarh. Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat produce the majority of the nation's wheat. 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.
The data unambiguously shows that exports of APEDA products, which include fresh vegetables, dried fruits like walnuts and cashews, fruits, processed fruits, juices & nuts, pulses, buffalo meat, dairy products, chicken products, honey, rice, wheat, and maize, have increased exponentially. India exported agricultural goods worth $16.69 billion in 2019–20. In 2021–2022, exports increased by about $8 billion, reaching a record high of $24.74 billion. As agricultural exports reached $20 billion in the first three quarters of the current fiscal year, or 2022–2023, it is one of the most productive years ever in terms of exports. 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.
The most common agricultural export from India is rice. In 2019–20, exports of rice (basmati and non–basmati) totaled $6.34 billion. In 2021–2022, rice exports increased to $9.66 billion. 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. According to the annual Economic Survey, which was released on January 31, the agriculture industry, the country's largest employer, has grown at an average annual growth rate of 4.6 percent during the past six years.
The high growth in agri-exports that was seen as a result of the government's emphasis on boosting exports shows how committed it is to increasing farmers' income. The government has utilised APEDA to carry out a number of projects, including the organisation of B2B exhibitions worldwide and the exploration of new potential markets via campaigns for both general and product-specific marketing. In order to support exporters across India, the Indian government has recognised 220 labs to provide services of product evaluation for a wide range of goods. Also, it has developed a product matrix for 50 agricultural goods with high export potential. The Indian government unveiled a comprehensive agriculture export policy in 2019 to increase agricultural exports. 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 agricultural products are exported by packing containers and loading them onto ships, but recently air transportation has emerged as a new alternative In an effort to boost the quantity of agricultural produce exported by air, the Airports Authority of India now completely waives landing, parking, and terminal navigational landing costs for freighters and passenger-to-cargo aircraft in 25 airports.
Talking of APEDA, it was established by the central government in 1985. The Ministry of Trade and Industry oversees its operations. The Authority's main office is in New Delhi. The promotion of exports and the development of the listed agricultural products fall under the purview of APEDA. By providing financial help or other forms of support for performing surveys and feasibility studies, as well as through taking part in subsidy programmes, it monitors the expansion of industries related to the scheduled export items.
