India’s Agricultural exports rise in 2020-21

Context: As per recent data provided by the Ministry of Agriculture & Farmers Welfare India’s agricultural exports grew 17.5 percent in 2020-21. 
Key Points

• India’s agricultural exports crossed $41.8 billion in 2020-21 and that too at a time when country’s overall merchandise exports fell 7.2 per cent to $290.8 billion, from $313.4 billion in 2019-20.
• The performance of the farm sector’s standout export this time, best since 2013-14 
• The figures are also in line with GDP numbers. Agricultural growth for 2020-21 is estimated at 3 per cent, even as the Indian economy contracted by 6.5 per cent.

?Growth in other Commodities

• Last year’s Agri-export boom was led by non-basmati rice. It has further consolidated India’s position as the world’s biggest rice exporter.
• It is not just rice, but other commodities also, which posted significant positive growth in exports like wheat, Other Cereals, Soya meal, Spices, Sugar, Raw Cotton, Fresh Vegetable, Processed Vegetables, and Alcoholic Beverages etc.

India registered all-time-high exports of following products in 2020-21

• sugar ($2.79 billion), 
• spices ($3.98 billion) and 
• processed fruits & vegetables ($1.12 billion)
• Raw cotton boosted from $1.06 billion in 2019-20 to $1.90 billion in 2020-21 and oil-meals from $827.9 million to $1.58 billion). 
• As far as Wheat and Maize is concerned, India became a significant exporter of wheat (2.09 mt) and maize (3 mt) for the first time after 2014-15.

Is it long last?

• The same success story is difficult to repeat for agricultural sector. 
• Pandemic has been spread to the rural hinterland, unlike last year, when cases were predominantly reported from urban centres.
• The Covid surge can impact shipments from India, at least temporarily.
• Many of the ports are reporting substantial drop in daily labour attendance for loading/unloading activity.
• The number of vessels calling has fallen in the last few day, because the owners are hesitant to load cargo from India.
• Though there would be some setback due to the current disruptions, exports would do well because of high international prices.

As per Economic Survey: India occupies a leading position in global trade of agricultural products. However, its total agricultural export basket accounts for a little over 2.5 percent of world agricultural trade. The major export destinations were USA, Saudi Arabia, Iran, Nepal, and Bangladesh.