The Future of Import Export scenario of Indian Agriculture Products

India is one of the largest producers of agricultural products in the world and plays a vital role in the global agricultural trade. In the financial year 2019-20, India produced around 280 million metric tonnes of food grains, and its agri-exports touched Rs 2.52 lakh crores and imports at Rs 1.47 lakh crores. Although India’s agriculture trade had a market value of 63,506 billion rupees even amidst the pandemic, its true potential in the agricultural sector is yet to be discovered.


The Current Import-Export Scenario of Agricultural Products

India is an agrarian economy with over 150 million hectares of cultivable land. Over the years, India has developed export competitiveness and become one of the leading global producers of rice, wheat, cotton, fruits, seafood, vegetables and dairy. Apart from fulfilling domestic demand, India exports rice, cotton and carabeef to countries such as the USA, Saudi Arabia, Iran, Nepal, and Bangladesh.

The total agriculture export of India was USD $3.50 billion in March–June 2020 with a sharp increase of 23.24% from 2019. While Marine products, Basmati Rice, Non- Basmati Rice, Spices, and Buffalo meat were among the top five commodities to be exported, the main drivers of the increase in exports in 2020-21 are wheat (672% increase), other cereals (245%), molasses (141%) and non-Basmati rice (132%).

Also, with the rise of modern retail outlets and e-commerce retailers, the market for imported consumer foods has grown steadily in India. India majorly imports vegetable oils, fresh fruits, pulses, and spices, accounting for 80 percent of its total import. India’s vegetable oil imports in 2020-21, up to February 2021, are worth Rs. 74,286 crores. For some products such as poultry and dairy, imports appear imminent as growing demand from its population exceeds the production capabilities. But, India has been self-sufficient over the years and the import of consumer-oriented food products decreased by 11 percent in 2019.

To understand the current import-export scenario, a precise list of total production, import and export of major agricultural products (2020-2021) are given below:(data from https://agriexchange.apeda.gov.in/Home.aspx )

Product Export in Quintal Value in Lakhs
Basmati Rice 4630463.14 2984988.97
Buffalo Meat 1085619.93 2346038.30
Non-basmati Rice 13095130.21 3547661.45
Groundnuts 638582.92 538161.35
Fresh Onions 1578016.57 282653.44
Vegetable oils 12400000 7428600
Pulses 29753668.06 1052734.65
Fresh Fruits 7241513.59 491210.3
Cocoa Products 852761.97 183397.44

Possible Prospects for Agricultural Trade in India

Over the years, India has essentially attained self-sufficiency in the production of food grains, resulting in solid and fast economic growth, and this trend is expected to continue in the future. As the demand for fresh and processed products of all types is increasing, the agricultural sector is witnessing a shift from traditional farming to smart farming techniques. Also, the development of an efficient distribution network will reduce the current spoilage rate of agricultural output while assisting farmers to reap profit without compromising the quality.

Furthermore, to address the issues faced by the agrarian community and help the farmers gain a fair income, the government is initiating many farmer-friendly schemes. The Indian agriculture domain is predicted to experience its next wave of expansion as a result of:

  • regulatory policy interventions
  • better transport and storage facilities
  • adoption of novel technologies and
  • smarter farming solutions.

India’s agricultural exports have grown despite the pandemic providing hope to the Indian agricultural domain. With increased production and sufficient technological assistance, Indian agricultural exports are expected to grow steadily in the future, offering developmental opportunities to the Indian economy.

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