Positive growth. Agri products export grows 25% to $13.8 billion in H1 FY23

Exports of major agriculture and processed products, promoted by Agricultural and Processed Food Products Export Development Authority (APEDA), have jumped by a quarter to $13.77 billion (₹1,07,942 crore) during H1 FY23 from $11.06 billion year-ago. Exceeding the target, APEDA products had registered record $25,6 billion in FY22.

There has been an impressive over 100 per cent jump in export value in wheat, pulses, and milled products, while guar gum and poultry products have registered more than 80 per cent growth.

“APEDA will focus on value-added and processed food products where our potential is definitely very high. Special thrust will be given on millet-based products, which have higher value than raw grains, particularly among health-conscious population,’ said M Angamuthu, chairman, APEDA.

“We will also encourage exporters to source their products directly from farmer producers’ organisations (FPOs), besides focussing on improving quality of food products,” Angamuthu added.

APEDA has been given a mandate for the promotion of all agri products, broadly divided under 27 categories, except tea, coffee, spices, and marine products. APEDA has a share of over 50 per cent in the entire export in agriculture and allied sector valued at $50.21 billion during 2021-22.

Even as the government banned wheat export from May 13, its export has registered 136 per cent growth at $1.49 billion during H1 of the current fiscal from $0.63 billion in the corresponding period last year. Other cereals, including maize (rice, wheat excluded) grew by 12 per cent to $ 525 million from $ 467 million.

The Government had permitted shipments of wheat for the quantity for which exporters had already received LCs (letters of credit) before the ban date.

Rice exports

Export of rice (both basmati and non-basmati) increased 19 per cent to $5.5 billion from $4.6 billion. The non-Basmati rice has grown a modest 8 per cent to $3.21 billion from $2.97 billion, but basmati export has surged 37 per cent to $2.28 billion from $1.66 billion, thanks to an increased global demand.

There has been a decline in price realisation in non-Basmati rice export to $358/tonne in H1 FY23 from $361/tonne in the year-ago period. On the other hand, the realisation in Basmati rice has increased to $ 1,057/tonne from $853/tonne.

“The concerted efforts of APEDA in addressing exporters’ problems, particularly post-Covid, has provided the needed thrust to augment exports. It is inevitable to mention that APEDA was more focused on the export promotion of Basmati rice, non-Basmati rice, and meat in the last two decades. But in recent times, APEDA has been aggressively promoting neglected products and also conducting state and district level export initiatives,” said S Chandrasekaran, a trade policy analyst.

Export of buffalo meat, which has a 12 per cent share in APEDA basket, has increased 2.7 per cent to $1.64 billion from $1.59 billion. Pulses shipments have fetched $ 330 million as against $135 million and processed fruits and vegetables have registered 19 per cent growth to $695 million as against $584 million year-ago.

Guar gum export, which had a record $3.92 billion in the entire FY13, has registered 92 per cent growth at $344 million in H1 of current fiscal as against $179 million in the corresponding period of last year.

COMMENT NOW