Agricultural Exports Decline by 3.24% in Q1, Impacted by Export Restrictions and Rising Costs

In the first quarter of the current financial year (April-June 2024), India witnessed a decline of 3.24 percent in agricultural exports, amounting to $588.68 crore. This decrease has been attributed to various factors including export restrictions on products like non-basmati rice and onion, disruptions from Houthi attacks in the Red Sea, and escalating freight costs. According to data from the Agricultural and Processed Food Products Export Development Authority (APEDA), rice exports marginally decreased to $280.83 crore during this period, with both basmati and non-basmati varieties seeing a 0.46 percent decline.

Shifts in Export Dynamics
Conversely, exports of fruits and vegetables showed a positive trend, rising by approximately 6.47 percent to $843 million in the same quarter. However, cashew exports experienced a notable decline of 17.08 percent, amounting to $68.6 million. Exports of meat, dairy, and poultry products saw a slight increase of 0.14 percent, reaching $101.13 million.

Challenges in Grain Exports
The quarter also saw a significant decline in maize and other grains exports by 76 percent, totaling $60 million. Despite an increase in maize production in India, higher domestic prices compared to international rates have constrained exports.

APEDA's Initiatives and Targets
In an effort to bolster agricultural exports, APEDA is actively expanding its export network in collaboration with Farmer Producer Organizations (FPOs). Currently, 1,200 FPOs have been registered as exporters, with a target to onboard 2,500 FPOs by the end of the fiscal year.

Innovation in Export Platforms
APEDA has initiated a pilot program aimed at connecting exporters and FPOs through the export vertical of the ONDC platform. Presently, 13 exporters have joined this initiative, with a target to involve 250 exporters/FPOs. Additionally, APEDA has identified 25 focus products, including onion, basmati rice, peanuts, cashew, banana, potato, ghee, pomegranate, and pineapple, for enhanced export promotion efforts. This strategic focus underscores APEDA's commitment to revitalizing India's agricultural export sector amidst prevailing challenges and opportunities.