India\'s agricultural exports decreased by 8.2%

India\'s agricultural exports decreased by 8.2%

Context: There was an 8.2% decrease in India\'s agricultural exports in the fiscal year ending March 31, 2024, attributed to restrictions placed on shipments of various commodities ranging from cereals and sugar to onions.

Overall Performance:

• Growth Rate and Contribution:
- Agriculture and allied sectors are projected to grow by 0.7% in FY24 according to the second advance estimates.
- The agricultural sector is estimated to contribute around 18% to India\'s Gross Value Added (GVA) in FY24.
• Production:
- Total food grains production for FY23 was 329.7 million tonnes, indicating an increase of 14.1 million tonnes compared to the previous year.
- Horticulture production reached a record high of 355.25 million tonnes as per the third advance estimates.
• Global Dominance in Agricultural Commodities:
- India is the largest producer of milk, pulses, and spices globally.
- It ranks as the second-largest producer of fruits, vegetables, tea, farmed fish, sugarcane, wheat, rice, cotton, and sugar.

Analysis:

• Statistics:
- The total value of India\'s farm exports was $48.82 billion in the fiscal year 2023-24, down from $53.15 billion in 2022-23 and $50.24 billion in the previous fiscal year.

• Trends Over Years:
- From 2013-14 to 2019-20, India\'s agricultural exports declined from $43.25 billion to $35.60 billion.
- Concurrently, agricultural imports increased from $15.53 billion to $21.86 billion during the same period.
- The decline in exports was influenced by significant drops in global agricultural commodity prices. The UN Food and Agriculture Organization’s (FAO) food price index fell from an average of 119.1 points in 2013-14 to 96.5 points in 2019-20.
- Lower international prices impacted India\'s export competitiveness and increased vulnerability to imports.

• Impact of Global Events:
- Following the global price recovery post the Covid-19 pandemic and Russia\'s invasion of Ukraine, India experienced record-high farm exports and imports in 2022-23.
- The FAO index soared to 140.8 during this period.
- However, there was a decline in agricultural exports in the most recent fiscal year (2023-24), which could be attributed to various factors including changing global market conditions and trade dynamics.

Agriculture Exports: 

Agriculture Imports: