India's Q1 agri exports decline 3% due to Red Sea crisis
Jul 19, 2024
New Delhi [India], July 19 : Agricultural exports in April-June 2024 dropped by 3 per cent due to the Red Sea crisis. According to the Agricultural and Processed Food Products Export Development Authority (APEDA), agri exports during this period were USD 5886.81 million, compared to USD 6083.83 million a year ago.
Addressing a press conference, APEDA Chairman Abhishek Dev stated that various issues have dragged exports down during the first quarter.
"Agri exports are facing challenging headwinds along with tight domestic supply conditions. The Red Sea basin issue persists. We have seen an increase in freight costs and a shortage of containers. These factors are behind the decrease in agri exports," the APEDA chairman said.
According to APEDA, maize exports have seen a significant decline of 76 percent.
Maize exports in April-June dropped to USD 60 million, down from USD 517.80 million in April-June 2023.
Despite good production in India, local prices are higher than international prices, leading to reduced maize exports. During the quarter, exports of cashew and oil meals declined by 17 and 25 percent, respectively. Exports of basmati rice and parboiled rice registered a flat growth of 0.46 percent.
Rajesh Agrawal, Additional Secretary of the Commerce Ministry, mentioned that rice exports, a major export commodity, were almost flat due to export controls.
He added, "Although rice exports are flat, we expect an update in the coming period. We have been performing well in fruits and vegetables, with a growth of around 6.47 per cent in exports."
Agrawal also highlighted efforts to broaden the agri exports network by onboarding Farmer Producer Organizations (FPOs).
"1,200 FPOs were registered as exporters, signifying their growing potential to drive agricultural exports. We aim to onboard 2,500 FPOs this financial year, doubling the current level. APEDA has initiated a pilot program to onboard exporters and FPOs onto the export vertical of the ONDC platform. So far, 13 exporters have joined the platform. APEDA has set a target of onboarding 250 exporters/FPOs."
He further noted, "We are focusing on 25 new products that can be exported from India. We are developing a strategy to find new products and geographies, as diversification within our country will help expand the agricultural export basket. Currently, exports are concentrated on a limited number of commodities and regions."
