Agriculture and Food Industry and Exports

Introduction

India’s agrarian culture and varied regional climate have significantly contributed to the global food basket.

Indian curries, spices, snacks, and mangoes are known for their excellent quality across the globe. Globally, India leads the following food segments: 

• The total agriculture commodities export was US$ 3.50 billion in March–June 2020 with sharp increase of 23.24% during the same period in 2019.
• During April–December 2020, grapes export amounted to US$ 49.79 million.
• India exported pulses worth US$ 216.76 million and dairy products worth US$ 138.93 million from April– December 2020.   
• During April–September 2020, natural honey export amounted to US$ 62.29 million.
• India is the largest milk producer in the world. Milk production in the country is expected to reach 330 million tonnes (MT) by 2024.
• India has the world’s largest population of buffalos (109.8 million in 2020).
• Among vegetables, India ranks second in the world with 188 MMT production in FY20*; it is number one in producing Okras with 6.44 MMT production in FY20*.

Export Highlights

During FY20 (till February 2020), India exported basmati rice worth US$ 3.88 billion, buffalo meat worth US$ 3.01 billion, non-basmati rice worth US$ 1.84 billion and other processed foods worth US$ 2.71 billion.

During FY21 (till December 2020), India exported basmati rice worth US$ 3.27 billion, non-basmati rice worth US$ 3.51 billion, and buffalo meat worth US$ 2.62 billion.

Indian agricultural/horticultural and processed foods are exported to more than 100 countries/regions, chief among them being the Middle East, Southeast Asia, SAARC countries, the EU, and the US.

Recent Development

Ministry of Commerce and Industry introduced Agriculture Export Policy, 2018 with an aim to double farmers’ income by 2022 by doubling agricultural exports from the country and integrating Indian farmers and agricultural products to the global value chain. The export of agriculture is targeted at US$ 60 billion by 2022.

In order to increase the exports of bamboo products, local artisans are supported by National Bamboo Mission.

Government of India introduced the following ordinances to implement reforms in agriculture sector:

• Agriculture Export Policy

To increase farmers’ income, harness export potential and make India a leading player in agriculture sector, Indian government launched comprehensive agriculture export policy.

• The Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020

This ordinance will allow intra-state and inter-state trade of farmers’ produce beyond the physical premises of APMC markets and the state governments will be prohibited from levying market fee, cess, or levy outside APMC areas

• The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020

This ordinance will provide a framework on farming agreements, and will protect and empower the farmers to engage with agri business firms, processers, wholesalers, exporters, or large retailers

• The Essential Commodities (Amendment) Ordinance 2020

Under this ordinance the central government will be able to regulate the supply of certain food items only under extraordinary circumstances (such as war and famine).

Agricultural and Processed Food Products Export Development Authority

The Agricultural and Processed Food Products Export Development Authority (APEDA) plays a significant role in tapping India’s agricultural strengths and works towards expanding the export potential of Indian agricultural and food products.

Note- *- as per first advance estimate, **- as per third advance estimate