India's agricultural exports will cross US$ 40 billion in FY22: NABARD Chairman

According to Mr. GR Chintala, Chairman, National Bank for Rural and Agriculture Development (NABARD), the agriculture exports market in India is expected to exceed US$ 40 billion in FY22, due to solid demand worldwide for commodities such as oilseeds, oilcakes, cotton, sugar, non-basmati rice. The enhanced understanding of the Indian farmers of the world’s market is also expected to contribute to the export growth.

Mr. Chintala said, “Farmers have recognised the international market needs and the demand of the quality products. This is contributing to the growth of agriculture exports from India. The market in China has emerged as a key purchaser of agriculture products in the world markets. Also, we are in the middle of a commodity super cycle.”

In FY21, the agriculture and allied products (including marine and plantation products) export market increased to US$ 41.25 billion as compared to US$ 35.16 billion in FY20, US$ 38.74 billion in FY19 and US$ 38.43 billion in FY18.

Mr. Chintala said Farmer Producer Organisations (FPO) are performing a crucial part in boosting exports from the country. In India, there are ~ 8,000 FPOs, of which 4,868 FPOs are supported by NABARD and its subsidiaries. The farmers’ gains have grown by 20% - 40% post joining FPOs as they receive the inputs at competitive prices, lease machinery and add value to their production to earn better prices in the markets.

For FY22, NABARD has set a disbursement target of Rs. 7.5 lakh crore (US$ 100.70 billion) for rural and agriculture development as compared to Rs. 6.57 lakh crore (US$ 88.21 billion) in FY21.

To guarantee farmers achieve minimum support price for their production, NABARD has boosted procurement operations of several state governments. The NABARD chairman added, “In FY21, on procurement head, we had disbursed ~ Rs. 50,000 crore (US$ 6.71 billion). In FY22, we aim to expand it by another Rs. 5,000 crore (US$ 671.34 million) – Rs. 10,000 crore (US$ 1.34 billion).”

NABARD has initiated Rural Infrastructure Assistance (RIAS), a new product for eastern India states. Mr. Chintala said, “We are witnessing a keen interest from the eastern India states to borrow under RIAS to build medical infrastructure.”

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.