Agri exports in first 3 quarters hit record $20bn in 12.6% jump | Latest News India | Times Of Ahmedabad

Exports of agricultural produce through the Agricultural and Processed Food Products Export Development Authority in first the three quarters of the ongoing financial year touched a record $20 billion, registering a 12.6% rise on-year, latest figures show, with their growth propelled by higher global commodity prices and resilience of the farm sector.

Overseas shipments were boosted by basmati rice, which registered a 16% increase in value terms, a surprising 92% jump in exports of pulses and 25% in fresh vegetables, mainly to demand from the US, UAE and China, latest data from the Agricultural and Processed Food Products Export Development Authority show.

India has also emerged as a net exporter of farm products, whose exports touched an all-time high of US$ 50.2 billion in 2021-22, according to official data. Trade analysts say India change of focus from domestic food security to exports had driven overseas sales. Farm exports crossed 11% as a share of total merchandise exports for the first time in 2021-22.

The war in Ukraine, shipping disruptions and rising oil and fertilizer prices bumped up grain prices, which seemed to have raised rates of premium basmati rice, despite India banning wheat exports in May last year followed by restrictions on rice exports, said Rahul Chauhan of IGrain Pvt Ltd.

Exports are a key reason for steady farm growth. The annual Economic Survey, presented on January 31, said the agriculture sector, the country’s largest employer, has grown at an average annual growth rate of 4.6% in the last six years. The sector grew by 3% in 2021-22 compared to 3.3% in 2020-21.

It however warned of a slowdown in global growth in 2023-24, which could lead to slower export growth. “A slowdown in Indian exports is inevitable in a slowing global economy,” it stated. The growth of exports may have moderated in the second half of FY23, after a surge in FY22 and the first half of FY23, it added.

To facilitate exports, the Union government had launched Krishi Udan Scheme in August 2020 on international and national routes to help farmers transport agricultural products, especially perishable food products from the hilly areas and north-eastern states.

To boost shipments of agricultural produce by air, the Airports Authority of India now provides a full waiver of landing, parking charges and terminal navigational landing charges for freighters and passenger-to-cargo aircraft in 25 airports.