India’s Agricultural Exports Drop Marginally as Key Segments Grow

The shipment of agricultural and processed food by India during the first half of FY25 stood at $12.13 billion with a marginal 1% decline. Financial Express states that the primary cause behind this downfall is that non-basmati rice shipments had declined by as much as 17%. Other industries however have shown resilience and growth within this period, such as fresh fruits, buffalo meat, and basmati rice. 

Basmati rice shipments from April through September 2024 were up 11% at $2.87 billion. This hike has been facilitated by the recent abolition of the minimum export price, or MEP, of $950 per tonne, in place since October 2023 and removed last month. It is anticipated that this removal of the pricing wall will make Indian rice more competitive on the international market. 

As the government authorities predict export restrictions in the second half of FY25, agriculture exports would also be increasing. Industry experts said that there would be good recovery by easing exporting of both basmati and non-basmati rice from this year as the government eased its restrictions of removing export tariff and MEP. 

The timing of these regulation changes is especially beneficial for exporters looking to reclaim lost market share, according to Akshay Gupta, head of bulk exports at KRBL, a well-known basmati exporter, who stated that crop yields are expected to improve by 10-15% this season. 

Apart from grains, exports of buffalo meat also showed development, rising 4% annually to $1.8 billion in the same time frame. The robust demand for Indian buffalo meat, which is known for its high quality and is prepared in accordance with strict World Organization for Animal Health (OIE) guidelines, is the reason for this growth. 

Exports of fresh fruit have also increased slightly, reaching $0.4 billion in the first half of the fiscal year. Fresh vegetable exports, on the other hand, fell 4% to $0.43 billion. A growing demand for some Indian products abroad, such as bananas, mangoes, processed fruit, fruit juices, and seeds, has been brought to the attention of officials. 

The deliberate lifting of export restrictions seems to be a key element in supporting the future recovery and expansion of Agri-exports as India manages these possibilities and difficulties in its agricultural industry.