- India’s agricultural exports are growing faster than overall merchandise trade, reaching $25.9 billion in April–September 2025 with an 8.8% rise, despite global price fluctuations and US tariffs, highlighting the sector’s resilience and rising global demand.
India’s Agri Exports: Current Scenario
- Annual Export Value: $52Bn in FY 2024–25, growing 6.4% YoY, while total merchandise rose only 0.1%.
- Billion-Dollar Products: Marine, non-basmati rice, buffalo meat, coffee, each crossed $1B+ value.
- Coffee Surge: Export value increased from $739Mn (2019–20) to $1.8Bn (2024–25).
- Processed Food Rise: Processed F&V exports increased from $958M to $1.8Bn (2019–20 to 2024–25).
Drivers of India’s Agri Export Growth
- Policy Relaxation: Gradual easing of non-basmati export bans & duties revived supply, aiming to cross $6.5Bn, supported through export promotion under the APEDA.
- Commodity-Specific Tailwinds: 17.4% rise in marine exports (H1 FY25-26) due to global demand and quality compliance enabled by Marine Products Export Development Authority (MPEDA) certification.
- Price Windfall Effect: Coffee export value doubled (2019-20 to 2024-25) due to 25-year-low global stocks, aided by value-addition initiatives under the Coffee Board of India.
- Domestic Production Support: Consecutive good monsoons + high FCI stocks ensured exportable surplus with risk protection supported through the Pradhan Mantri Fasal Bima Yojana (PMFBY).
- Private Sector Agility: Exporters quickly diversified to China, Vietnam, the EU, Japan & Canada to bypass the 58% US seafood tariff, reducing overdependence on a single market.
- Trade Infrastructure Upgrades: Better pack-houses, reefer logistics & Mega Food Parks strengthened perishables export capacity through the Pradhan Mantri Kisan Sampada Yojana (PMKSY).
Challenges Facing Agricultural Exports
- Global Price Sensitivity: Falling world prices. E.g., cereals (103.6) and sugar (94.1) in Oct 2025 can reduce India’s export competitiveness.
- Trade Barriers: US tariffs caused declines in marine products, spices, and basmati rice exports, though a partial rollback in 2025 eased pressures.
- Export Restrictions: Domestic clampdowns on wheat, rice, sugar, onions, and de-oiled rice bran aimed to control inflation, negatively impacting export growth.
- Supply-side Constraints: Agricultural productivity issues, inadequate cold chain infrastructure, and fragmented farm holdings limit large-scale exports.
Way Forward
- Infrastructure Upgrade: Expand cold chains, warehousing, and logistics to reduce post-harvest losses and improve export quality.
- Market Diversification: Explore new export destinations beyond traditional markets to reduce dependence on the US and EU.
- Value Addition: Promote processing of fruits, vegetables, and marine products to increase export value and competitiveness.
- Technology Adoption: Implement precision agriculture, climate-resilient crops, and digital traceability to enhance yield, quality, and compliance with global standards.
“Food is India’s soft power.” Strengthening infrastructure, promoting technology adoption, and diversifying markets can make India a global agri-trade powerhouse, ensuring resilient and sustainable growth in farm exports.
Reference: The Indian Express
PMF IAS Pathfinder for Mains – Question 425
Approach
- Introduction: Write a brief introduction about India’s agricultural exports, & also mention the current facts.
- Body: Analyse the key drivers of agricultural exports growth, major challenges that hinder export competitiveness and suggest measures to strengthen India’s farm export performance.
- Conclusion: Emphasis on value-led growth powering India’s export resilience.
