India’s exports of agricultural and processed food products declined marginally (1%) to $ 12.13 billion in the first half of FY25, owing to sharp fall of 17% in non-basmati rice shipments.
Shipments of basmati rice, buffalo meat and fresh fruits, however rose during April-September, 2024-25 compared to the same period in FY24.
Exports of aromatic and long-grain basmati rice saw a sharp spike of 11% on year to $ 2.87 billion in April-September of FY25. The minimum export price (MEP) of $ 950/tonne imposed in October, 2023 was removed last month, which is expected to boost shipment of high value rice.
With removal of restrictions on rice exports, agri-exports are expected to rebound in the second half of the FY25, officials said. Last month, the government removed virtually all restrictions on basmati as well as non-basmati rice exports imposed last year by removing minimum export price and export duties
Although non-basmati rice exports declined by 17% to $ 2.25 billion in April – September, because of restrictions on shipment which are likely to get a boost with removal of export duties and MEP.
Trades sources said that India’s dominance in global rice trade is expected to be restored with a spike in shipment especially to Africa and south-east Asian countries
“Indian rice exporters are now better equipped to reclaim market share that was lost last year because of restrictive trade policies,” Akshay Gupta, business head, bulk exports, KRBL, which exports basmati rice to over 90 countries under ‘India Gate’ brand, told FE.
Gupta said with the current year’s crop yield projected to be 10-15% higher than last year, the timing of lifting export restrictions could not be more opportune.
The shipment of buffalo meat rose by 4% on year to $ 1.8 billion during April-September of the current fiscal against the value of exports $ 1.73 billion during the same period in 2022-23.
Officials said that in the last decade, there has been a rise in demand of the Indian bovine meant across the globe due to its quality, nutrient values and risk-free as the buffalo meat is processed and exported as per the World Organization for Animal Health (OIE) guidelines for any risk mitigation.
The exports of fresh fruits in the April-September period of the current fiscal rose marginally to $ 0.4 billion compared to the same period last year, Fresh vegetables shipment declined by 4% to $ 0.43 billion in the first half of curent fiscal on year.
Officials said that there has been rising demand for several agricultural products such as bananas, mangoes, processed fruits and juices, fruits and vegetables seeds and processed vegetables across the world.
India’s exports of agricultural and processed food products in FY24 declined by 6% to $25.01 billion on year because of a drop in rice exports because of restrictions imposed last year. APEDA has set an export target of $ 28.72 billion for FY25.
The share of exports of products under the APEDA basket is around 51% in the total shipment of agri-produce. Rest of the agricultural products exports include marine, tobacco, coffee and tea.
Source - https://www.financialexpress.com
