India plans to boost exports of key agricultural products

The Centre is developing a strategy to enhance exports of 20 high-potential agricultural products, including basmati rice and mango. This initiative is driven by India’s low global export share, which the government aims to increase from 2.5% to 4-5%. The strategy is crucial due to recent declines in agricultural exports, largely caused by external factors and domestic restrictions.

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A strategy to boost exports of 20 ‘high potential’ agriculture products, such as basmati rice, alcoholic beverages, honey, mango, and banana, is being worked on by the Centre. An actionable plan is currently being formulated.

Discussions have been initiated by the Department of Commerce and the Agricultural and Processed Food Products Export Development Authority (Apeda) with all relevant stakeholders, including states, as stated by Rajesh Agarwal, the additional secretary at the department of commerce to Business Standard.

The importance of such a plan is emphasized due to the recent contraction in India’s overall agriculture exports over the past year, which was attributed to export restrictions on essential commodities like rice, wheat, sugar, and onion.

Agricultural commodities have also been impacted by external factors, including the Russia-Ukraine war and the Red Sea crisis.

India’s current share in global exports stands at about 2.5%, with the government’s aim to increase it to 4-5% in the coming years.

In 2022, global imports of the 20 commodities were valued at $405.24 billion, with India’s share being $9.03 billion. Countries with significant export potential for these items include the United States, Malaysia, Canada, Russia, Germany, France, South Korea, China, Indonesia, Japan, Italy, Belgium, and the UK.

India’s agriculture exports contracted by 8.8% to $43.7 billion during April-February (2023-24), mainly due to external factors like the Red Sea crisis and Russia-Ukraine war, as well as domestic restrictions on items such as rice, wheat, sugar, and onion.