Indian agri export value surged 23% to Rs 25552 cr in Mar-Jun 2020

August 19, 2020: The Indian exports of agricultural commodities during March to June 2020 were Rs 25552.7 crore against an export of Rs 20734.8 crore during the same period in 2019, showing a sharp increase of 23.24 percent.

As per the ministry of agriculture release, the department of agricultural cooperation & farmers welfare (DAC&FW) has prepared an action plan for the promotion of agri trade with a detailed exploration of data and issues of pre-production, production, and post-harvest. An analysis of product groups and then specific commodities has been done with regard to the present status of production & exports, strengths, challenges and thereafter interventions have been identified after consultations with stakeholders. The twofold approach addresses boosting agri export with emphasis on value addition and focussed action plan for import substitution.

It has also emphasised that the existing agri clusters are required to be strengthened and more product clusters to be developed to fulfil the gap of bulk quantity and quality of supplies.

History of India's agri export
As per WTO’s Trade Statistics, share of India’s agricultural exports and imports in the world agriculture trade in 2017 was 2.27 percent and 1.90 percent, respectively. The agricultural exports as a percentage of India’s agricultural GDP have increased from 9.4 percent in 2017-18 to 9.9 percent in 2018-19. While the agricultural imports as a percentage of India’s agricultural GDP have declined from 5.7 percent to 4.9 percent indicating exportable surplus and decreased dependence on import of agricultural products in India.

Why India needs an action plan?
There has been a substantial increase in export of almost all the agricultural items in the last 15 years, but despite being one of the top producers of agricultural products, India does not figure among top exporters of agricultural produce. For example, India holds the second rank in the world wheat production but ranks 34th in export. Similarly, despite being world No. 3 in the production of vegetables, the export ranking of India is the only 14th. Same is the case for fruits, where India is the second-largest producer in the world but the export ranking is 23rd. To reach the ranks of top exporting nation in Agriculture, commensurate with the production, there is a clear and categorical need to take proactive interventions.

Export promotion to niche markets
To mention a few, the Export strategy focuses on the export promotion of fast-evolving niche markets of wellness food/ health-conscious food/nutraceuticals; development of “Brand India” in campaign mode to help penetration into new foreign markets and of new products which automatically translates into higher value realisation; Gulf countries have been identified as focus destination to increase the market share which is a strong market for India though presently India caters to only 10-12 percent share of their total imports. A product-market matrix has been made containing a list of products of strength which could be expanded in new geographies and list of known markets which can be introduced with newer products.

India’s share is minuscule in fruits and veggies trade
It is also noted that horticulture is a growing sub-sector. India holds 2nd position in the production of fruits and vegetables. It exports 8.23 lakh MT (LMT) of fruits worth Rs 5,638 crore and 31.92 LMT of vegetables worth Rs 5,679 crore annually. Grapes occupy the premier position in fresh fruit exports followed by Mango, Pomegranate, Banana, and Oranges. In the fresh vegetable export basket, Onions, Mixed Vegetables, Potatoes, Tomatoes, and Green Chilly are the major items. However, world trade of fruits and vegetables is US$ 208 billion and India’s share is minuscule. There is huge potential to increase export in fruits and vegetables. As such, a specific strategy for export promotion has also been evolved for Fresh Fruits & Vegetables with specific emphasis on grapes, mango, pomegranate, onion, potato & Cucumber-Gherkin.

At the behest of the Department of Agricultural Cooperation & Farmers’ Welfare, Ministry of Agriculture, product-specific Export Promotion Forums have been created to lead agri exports to new heights. Export promotion forums (EPFs) for eight agri & allied products viz. Grapes, Mango, Banana, Onion, Rice, Nutri-Cereals, Pomegranate and Floriculture have been constituted under the aegis of Agricultural and Processed Food Products Export Development Authority (APEDA), Department of Commerce.