Tag: INDIA’S AGRICULTURAL EXPORTS

India’s agricultural exports grew by 6.5% to USD 37.5 billion (Apr-Dec 2024). Agricultural imports increased by 18.7% to USD 29.3 billion, reducing the trade surplus. Trends in India’s Agricultural Exports Shift in Cotton Trade India has become a net importer of cotton, reversing its earlier exporter status. Cotton exports declined from USD 4.3 billion (2011-12) to USD 1.1 billion (2023-24). Shrinking Agricultural Trade Surplus 2013-14: Surplus peaked at USD 27.7 billion. 2023-24: Surplus fell to USD 16 billion. Major Export Commodities Marine Products: Declined in 2023-24, expected to continue falling in 2024-25. Sugar & Wheat: Declined due to government restrictions aimed at controlling inflation. Rice: Strong exports despite bans on white rice and duties on parboiled rice. Basmati rice, spices, coffee, and tobacco set to reach record highs in 2024-25. Cash Crops: Exports of coffee and tobacco surged due to climate issues in Brazil, Vietnam, Zimbabwe. Spices & Others: India remains the top exporter of chilli, mint products, cumin, turmeric, coriander, fennel, etc. Major Import Commodities Edible Oil: Imports projected to be the highest in 2024-25 due to price hikes from the Russia-Ukraine war. Pulses: 2018-23: Imports averaged USD 1.7 billion due to increased domestic production. 2024-25: Expected to exceed USD 5 billion due to poor 2023-24 pulse production. Impact of Global Commodity Prices 2013-14 to 2019-20: Declining global food prices reduced India’s export competitiveness. Post-COVID & Russia-Ukraine War: Surge in prices boosted exports to USD 53.2 billion (2022-23). Key Trade Destinations Exports: Asia (58% of exports, Global South - 75%) China & UAE: USD 3 billion each in imports. Vietnam: USD 6 billion in imports. Europe (12.6%) – Exports include tobacco, fresh fruits, ornamental plants. US (13.4%) – Exports include rice, sesame seeds, fresh fruits. Africa (15%) – Significant export destination. Imports: Global South (48%) – Top suppliers: Brazil, China, Mexico, Argentina, Indonesia. Developed Economies – Top suppliers: US, Netherlands, Germany. Challenges in India's Agricultural Exports 1. Non-Tariff Barriers (NTBs) Developed countries impose Sanitary & Phytosanitary (SPS) and Technical Barriers to Trade (TBT). Examples: Basmati rice & tea exports faced bans in Europe over pesticide contamination. Japan banned Indian cut flower imports over zero-tolerance pest policies. 2. Unfair Level Playing Field Developed nations provide heavy subsidies to their farmers, while India’s support is much lower. US: USD 61,286 per farmer annually. India: USD 282 per farmer annually. This lowers global prices and hurts Indian farmers' competitiveness. 3. Challenges to India’s MSP Policy Developed nations (US, Canada, Australia) challenge India’s MSP at the WTO. Allegation: MSP exceeds the 10% limit (Amber Box) under WTO’s Agreement on Agriculture (AoA). India argues that input subsidies should remain uncapped under AoA’s ‘Development Box’. 4. Challenges from Free Trade Agreements (FTAs) India’s FTAs (e.g., with ASEAN, Japan, Singapore) lower tariffs on imported agri-products. This discourages farmers from adopting new technology and investing in infrastructure, reducing competitiveness. 5. Frequent Export Restrictions India often imposes export bans/restrictions to control domestic prices. Example: Frequent onion bans disrupt global supply chains, reducing India's reliability. Government Initiatives to Boost Agricultural Exports Agricultural Export Policy (AEP), 2018 – Aims to double agri-exports. APEDA (Agricultural and Processed Food Products Export Development Authority) – Facilitates export promotion. PM-FME Scheme – Supports micro food processing enterprises. Krishi Udan Yojana 2.0 – Enhances air cargo logistics for agri-exports. National Programme for Organic Production (NPOP) – Promotes organic farming and exports.

Tag: INDIA’S AGRICULTURAL EXPORTS

INDIA’S AGRICULTURAL EXPORTS

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