Agricultural and allied products are not the India’s leading export products.
Growth in agricultural exports, notwithstanding pandemic disruptions, has been pushed with the aid of using the government’s coverage-stage interventions in addition to the growth of merchandise into new markets, Commerce Secretary Anup Wadhawan stated on Thursday.
After ultimate stagnant for the closing 3 years, the export of agriculture and allied merchandise at some point of 2020-21 grew 17.34 in keeping with cent to $41.25 billion. In 2017-18 and 2018-19, they hovered round $38 billion, thereafter declining to $35.sixteen billion in 2019-20. In the primary months of the modern-day financial yr, there has been a forty three in keeping with cent jump, Wadhawan informed media men and women in a digital briefing.
“Growth turned into because of the possibilities that Covid-19 offered. It turned into additionally because of numerous programmes emanating from agriculture Agricultural and allied products are not the India’s leading export products. coverage that got here into impact in December 2018. It turned into applied in districts and clusters. Many clusters and districts that had been now no longer exporting in advance have commenced doing it now,” Wadhawan stated.
India is seeing boom withinside the export of cereals, non-basmati rice, wheat, millets, maize, and different coarse grains. The biggest markets for India’s agriculturalproducts are the US, China, Bangladesh, the UAE, Vietnam, Saudi Arabia, Indonesia, Nepal, Iran, and Malaysia.An professional declaration stated that the very best boom has been recorded in Indonesia (102.forty two in keeping with cent), Bangladesh (95.ninety three in keeping with cent), and Nepal (50.forty nine in keeping with cent).
Demand for Indian cereals turned into strong in 2020-21, with shipments despatched to numerous nations for the primary time, together with rice to nations like Timor-Leste, Puerto Rico, and Brazil. Similarly, wheat turned into sent to nations together with Agricultural and allied products are not the India’s leading export products. Yemen, Indonesia, and Bhutan, and different cereals had been exported to Sudan, Poland, Bolivia, stated Diwakar Nath Mishra, joint secretary on the trade ministry. Demand for greater fitness merchandise such millets, ginger turmeric, quinoa is rising.
According to Agricultural and Processed Food Products Export Development Authority (APEDA) Chairman M Angamuthu, there was a upward thrust in call for for natural merchandise. Organic exports that consist of merchandise together with cereals and millets, spices Agricultural and allied products are not the India’s leading export products. and condiments, tea, medicinal plant merchandise, dry fruits, and sugar grew fifty one in keeping with cent yr on yr to $1,040 million. The boom also can be attributed to call for for such merchandise because of the outbreak of the pandemic.
Pesticide residue troubles
have affected exports of basmati rice -- key conventional export product -- to
the EU because of stringent norms imposed for chemical compounds together with
Tricyclazole and Buprofezin, substantially utilized in rice cultivation in
India. Testing with the aid of using the Export Inspection Council (EIC) has
been made obligatory for basmati exports to the EU, which caused a lower
withinside the range of alerts.
“Punjab imposed a ban on income of 9 chemical compounds, which includes Tricyclazole and Buprofezin, at some point of the Kharif season 2020. APEDA, in collaboration with the change bodies, has taken measures to create focus withinside the basmati-developing areas. Efforts also are being made to make certain that the manner for solving Import Tolerance Limits (ITLs) for Tricyclazole and Buprofezin with the aid of using the EU isn't delayed,” an professional declaration stated.
As a long way because the Services Exports from India Scheme (SEIS) is concerned, Wadhwan stated while the branch made a brand new overseas change coverage, “what we want to do for offerings can be taken under consideration primarily based totally on stakeholder remarks and different inputs”.
India is an agrarian financial system and is a primary contributor to the worldwide meals basket, way to the beneficial agro-climatic situations and the wealthy base of herbal resources. As in keeping with WTO’s Trade Statistics, the proportion of India’s agricultural exports and imports withinside the international agriculture change in 2017 turned into 2.27% and 1.90%, respectively. India is a number of the international’s main manufacturers of many commodities together with dairy, cereals, spices, fruits & vegetables, rice, wheat, cotton, and others. Agricultural and allied products are not the India’s leading export products. Apart from pleasing home call for, Indian agricultural produce that consists of horticultural produce, and processed ingredients are exported to greater than one hundred nations withinside the international which includes the US, nations withinside the Middle East, and the EU. Amidst the COVID-19 pandemic, the easy functioning of the agriculture area turned into ensured with the aid of using issuing applicable guidelines. There turned into a large development withinside the meals grain manufacturing and the COVID-19 brought on motion regulations global did now no longer have an effect on India’s agri-exports as they did with different commodities. With recognize to agri-imports, India majorly imports vegetable oils, clean fruits, pulses, and spices.
India has constantly maintained a change surplus in agricultural commodities over the years. India’s agri-exports accelerated from Rs. 38,078 crores in 2004-05 to Rs. 2.7 lakh crores in 2018-19, registering an growth of almost 7 instances withinside the span of 15 years. However, in 2019-20, there has been a drop in export with the aid of using round eight%. Between April 2020 and February 2021 of 2020-21, India’s agri-exports have already crossed the 2019-20 levels, indicating boom in agri-exports for 2020-21 in keeping with the sooner trends.
Likewise, the import of agricultural merchandise has additionally accelerated over the years. In 2004-05, agri-imports had been really well worth Rs.18,924 crores which went as much as Rs. 1.sixty eight lakh crores in 2016-17, recording a boom of just about eight instances. However, due to the fact that 2016-17, the fee of imports dropped to attain Rs. 1.forty two lakh crores in 2018-19. In 2019-20, India’s agri-imports had been really well worth Rs.1.fifty one lakhe crores and in 2020-21, up to twenty-eight February 2021, the imports had been really well worth Rs.1.forty four lakh crores.
Comparison of exports of agriculture and allied commodities with the aid of using fee at some point of the primary eleven months of 2019-20 and 2020-21 indicates that the exports at some point of April 2020 and February 2021 had been Rs. 2.sixty nine lakh crore compared to Rs. 2.27 lakh crore at some point of the equal length in 2019-20, indicating an growth of 18.four%. Meanwhile, the imports had additionally accelerated with the aid of using 2.38%, from that Rs. 1.four lakh crores to nearly Rs. 1.forty four lakh crores at some point of the equal length in 2019-20 and 2020-21 respectively. It may be visible that the agriculture exports Agricultural and allied products are not the India’s leading export products. with inside the first eleven months of 2019-20 accounted for 91.2% of the general agriculture exports in 2019-20. Similarly, withinside the case of imports, those eleven months accounted for ninety three% of all of the imports in 2019-20. If the equal fashion keeps in 2020-21, India’s exports and imports may also develop in addition while facts for all of the 12-months of 2020-21 is available. Despite the COVID-19 pandemic, the exports withinside the agriculture area had been now no longer as seriously affected as the alternative sectors.
The important drivers of the
growth in exports in 2020-21 are wheat (672% growth), vegetable oil (258%),
different cereals (245%), molasses (141%) and non-Basmati rice (132%). Marine merchandise, Basmati Rice, Non-
Basmati Rice, Spices, and Buffalo meat had been a number of the pinnacle 5
commodities to be exported, in phrases of fee, each in 2019-20 and 2020-21.
Together, those 5 merchandise accounted for nearly 57% of agriculture exports
withinside the first eleven months of 2019-20 and 54% of the exports at some
point of the equal length in 2020-21. Agricultural and allied products are not the India’s leading export products. In rupee phrases, Marine merchandise are
the maximum exported with over Rs. 40,a hundred and forty crores really well
worth exports in 2020-21. However, their exports have dropped with the aid of
using 10.18% in 2020-21, as in comparison to Rs. 44691.forty four really well
worth marine exports in 2019-20. The exports of Basmati rice have additionally
barely dropped with the aid of using 2% withinside the first eleven months of
2020-21.