Corona Outbreak May Boost India’s Agri Exports, Says Agriculture Ministry Analysis

Amid the crisis over the global market due to the Coronavirus outbreak, the center has identified 21 agricultural products wherein India can grab part of China’s market share. As per reports, these include honey, potatoes, grapes, soya beans, and groundnuts, in which Indian exports could benefit from trade restrictions against Chinese goods across the global market.

As per our analysis, we have already predicted in an earlier article that the export of Indian goods is likely to increase due to coronavirus impact and the imposition of import duty on these items by the US.

Export of Indian Goods Likely to Increase 

As per reports, the total value of China’s global exports of these products amounted to $5488.6 million in 2018. India exported $4,445.9 million worth of these commodities in the same period and could now have a chance to grab part of China’s market share.

As per the analysis of the impact of the virus outbreak on India’s agricultural trade prepared by the Ministry of Agriculture and Farmers Welfare, “There may be opportunities for Indian exporters of agri-items, in case some countries impose restrictions on Chinese goods in response to the outbreak of COVID-19. Opportunities may arise in case of other countries imposing import restriction on these tariff lines”.

The government assured Indian Agri & Commodity Industry 

As reported, the report was submitted to the Finance Ministry last week to analyze the disruptions in global supply chains due to the COVID-19 crisis and chart a government response.

Supply shortages and trade restrictions have already had a harsh impact on China’s total exports, which dropped more than 17% in January and February, in comparison to the previous year. Chinese imports fell 4% in the same period.

“There are 21 Agri tariff lines where China’s global exports and India’s global exports are more than $25 million and where India is the price and volume-wise competitive and capable to provide an alternative,” said the Agriculture Ministry analysis, seen by The Hindu.

As per the final analysis reports, some of these products include natural honey, onions, and shallots, chillis, potatoes, vegetables, guavas, mangoes, grapes, tamarinds, cashew apples, lychees, a black fermented tea, spices, groundnuts, soybeans, paddy, sesamum seeds, vegetable seeds for sowing and plants used in perfumery or pharmacy. 

Vietnam, USA, Japan, U.K., Philippines, Malaysia, Russia and Korea are some of the major markets which currently buy these products from China.

‘Corona won’t affect Indian Market to that Extent’, says Reports

The impact of the virus outbreak on import of Agri items from China “may not affect us to an extent that may lead to any crisis”, said the Agriculture Ministry. India imported agriculture items worth $109.74 million from China in 2018-19, with seven products, including kidney beans, bamboo, cassia, fresh grapes, live plants and plums, and sloes, accounting for 84% of that.

Moreover, the analysis stated, “The imports of these items are likely to get impacted in case of supply disruption occurs in the wake of COVID-19. However, it may be noted that out of the top seven items, only two items – bamboo and kidney beans – are imported in bulk from China in the sense that they respectively represent 35.5% and 41.2% import from China out of India’s total imports from the world”. 

Bamboo Mission and the National Food Security Mission

As per reports, India is still striving for self-sufficiency through the Bamboo Mission and the National Food Security Mission.