India’s agricultural and processed food product exports will continue to surge in the current fiscal after a record shipment valued at $25.6 billion in 2021-22 because of global demand for the agricultural commodities, said Madhaiyaan Angamuthu, chairman of Agricultural and Processed Food Products Exports Development Authority (APEDA).
Demand for agricultural products from India is experiencing a surge in many markets despite logistical problems such as freight costs and container shortages, he noted. “Demand for Indian products is rising and utmost efforts are being made to maintain an uninterrupted supply chain,” Angamuthu told FE.
Rice exports in 2021-22 were worth more than $9.65 billion, while other key commodities like sugar were worth $4.6 billion, buffalo meat was for $3.3 billion, wheat was worth $2.2 billion, and fruits and vegetables were worth $1.4 billion, according to the APEDA basket.
Despite the government banning wheat exports in May and permitting only shipments with a letter of credit and those cleared under bilateral agreements, Angamuthu predicted that growth in agricultural product exports would continue.
"Our wheat exports have only increased in the last two years, and we have never been a major player in the global market for the crop," he added, "but we have been the world's largest rice exporter in recent decades." In 2021-22, India exported a record 7 million tonnes (MT) of wheat for $2 billion, compared to just 2.1 MT worth $0.55 billion in the previous year.
On the possibility of placing export limitations on agricultural products, the APEDA chairman explained that a macro environment study allows each country to identify its internal and surplus requirements, and then make decisions accordingly.
India's agricultural exports, which include rice, fruits, and vegetables, as well as marine, tea, and coffee, reached a new high of $50 billion in 2021-22. APEDA's products accounted for 52 % of India's agricultural exports.
In addition, the government is working on a matrix for 50 agricultural products with export potential.
Pesticide residues, traceability requirements, bans and restrictions on exports, market access, and other factors are one of the major restraints faced by India's agricultural and processed food exports, according to the agri-export promotion body. In terms of traceability, the export promotion body has built up a system that has been applied for grapes, peanuts, horticultural goods, and other shipments, according to the requirements of importing countries.
For the first time, APEDA permitted exports of unique products to the United Arab Emirates (UAE), including the Mishri variety of cherries and saffron, Mushkbudji fragrance rice from Kashmir valley, and Apricot from Kargil. In the same way, 'Bao-dhaan' from Assam's Brahmaputra valley was sold to the United States. Jamun was exported to the United Kingdom as an 'exotic' fruit from Lucknow, Uttar Pradesh.
King Chilli from Nagaland was sold to the United Kingdom, Bhalia wheat from Gujarat to Kenya and Sri Lanka, sweet dish Mihidana from Bardhaman, West Bengal to Bahrain, Madurai Malli (Jasmine) from Tamil Nadu to the United States, and Marayoor jaggery from Kerala to the United Arab Emirates.
