The Directorate General of Commercial Intelligence and Statistics (DGCI&S), under the Ministry of Commerce, Government of India, recently shared data regarding India’s agricultural and processed food products exports. Covering the first quarter of the current fiscal year, spanning from April to July 2022-23, DGCI&S is responsible for collecting, compiling, and disseminating India’s trade figures and commercial information.
Key Findings from the Data Release
Data reveals a substantial rise in the exports of Indian agricultural and processed food products during the first four months of the fiscal year 2022-23, increasing by 30% to reach USD 9.6 billion. This growth is compared to the corresponding period of the previous fiscal year, 2021-22. For the year 2022-23, an export goal of USD 23.56 billion has been set for the agricultural and processed food products sector. Notable growth in exports included a 4% increase in fruits and vegetables, a 29.13% rise in Basmati rice exports, and a 9.24% growth in non-Basmati rice exports, which totaled USD 2.08 billion. Dairy exports saw the most significant growth at 61.91%, reaching USD 247 million.
Overview: Agriculture, Food Industry, and Exports
India’s agriculture sector represents the country’s most extensive livelihood source. Recognized as one of the world’s largest producers of agriculture and food products, India reported a growth rate of 3.9% for the agriculture sector in 2021-22, compared to 3.6% in the previous year. The nation produces a multitude of crops and food grains, including rice, wheat, pulses, oilseeds, coffee, jute, sugarcane, tea, tobacco, groundnuts, dairy products, and fruits.
Export Statistics and Destinations
For the fiscal year 2021-22, India recorded a total of USD 49.6 billion in agricultural exports, displaying a 20% growth from USD 41.3 billion in 2020-21. During this period, agri & allied products exports alone were valued at USD 37.3 billion, a 17% increase from the previous year. Rice remains the primary exported product, contributing to more than 19% of total agricultural exports in 2021-22. The largest importers of India’s agricultural products include the USA, Bangladesh, China, UAE, Indonesia, Vietnam, Saudi Arabia, Iran, Nepal, and Malaysia, among others.
Growth Drivers and Initiatives
Several initiatives designed to promote the export of agricultural and processed food products have been implemented. These include organizing B2B (Business to Business) exhibitions in various countries, exploring new potential markets through specific product and general marketing campaigns, and engaging Indian Embassies actively.
The Agriculture Export Policy 2018 was also devised to diversify the export basket and destinations, encourage high-value agricultural exports, and promote indigenous, organic, traditional, and non-traditional Agri product exports.
Furthermore, the Financial Assistance Scheme by APEDA aims to assist businesses in export infrastructure development, quality improvement, and market development. APEDA has also facilitated the participation of 10 Indian wine exporters at the London Wine Fair to boost exports.
Lastly, efforts have been made to promote products with registered Geographical Indications (GIs) in India through the organization of virtual Buyer Seller Meets with the United Arab Emirates and GI products, including handicrafts in the USA.
UPSC Examination and India’s Position in Global Rice Exports
A query from the previous UPSC Civil Services Examination asked which country had been the largest exporter of rice over the last five years. The correct answer was India, as the country has maintained the position of the world’s top rice exporter since the beginning of the decade. This achievement is largely attributed to the Indian government’s lift on the export ban of non-Basmati varieties of rice in 2011. With this action, India surpassed Thailand in 2011-12 to become the world’s largest rice exporter.