Agriculture exports decline by 8.8% amidst global crisis

Agriculture exports decline: Amidst the backdrop of geopolitical tensions and domestic restrictions, India's agriculture exports witnessed a notable decline of 8.8 per cent to $43.7 billion during the April–February period of the 2023–24 fiscal year. Factors including the Red Sea crisis, the Russia-Ukraine war, and domestic constraints on vital items like rice, wheat, sugar, and onions have contributed to this downturn.

Commerce ministry data reveals a substantial setback, with exports plummeting from $47.9 billion in the corresponding period of 2022–23. Moreover, India's agricultural GDP growth decelerated significantly to a mere 0.7 per cent in 2023–24, contrasting sharply with the 4.7 per cent growth observed in the previous fiscal year.

Exports of 719 scheduled agricultural products in the APEDA basket faced a 6.85 per cent decline to $22.4 billion during the 11-month period of the last fiscal year, compared to $24 billion in April–February 2022–23. Restrictions on key commodities like rice, wheat, sugar, and onions resulted in a substantial export loss estimated at $5–6 billion.

Despite the overall decline, several principal commodities exhibited positive growth, including fresh fruit, buffalo meat, processed vegetables, basmati rice, and bananas. Basmati rice exports surged from $4.2 billion to $5.2 billion, marking a notable 22 per cent increase in value terms.

Amid uncertainties surrounding the Israel-Iran conflict, Indian alcoholic beverage exports witnessed growth, reflecting increased shipments of high-end domestic brands. Although India's current global ranking in alcoholic beverage exports stands at 40th, the sector shows promise for expansion, with world imports totaling $113.66 billion in 2022 and India's exports reaching $180 million during the same period.

As India navigates challenges in the agricultural export landscape, stakeholders remain vigilant, monitoring evolving geopolitical dynamics and domestic policy shifts to strategize for sustainable growth in the sector.

(with PTI inputs)