Agri Business

Farm exports dip 13 per cent on weak demand in FY20

Vishwanath Kulkarni | Updated on July 03, 2020 Published on July 03, 2020

Shipments of basmati rice saw a marginal increase in volume at 44.54 lakh tonnes (44.14 lakh tonnes in the previous year), but fell 7.4 per cent in value at $4.37 billion ($4.72 billion), on account of weak realisations   -  istock/EleSi

Basmati shipments down 7 per cent on pricing issues

India’s farm exports for financial year 2019-20 fell 13 per cent in value terms at $16.08 billion as against $18.58 billion in the previous year, as top grossing products such as cereals and livestock products were hit by weak demand and pricing issues during the year.

In Rupee value terms, exports fell 12 per cent in 2019-20 at ₹1,14,057 crore (₹1,29,344 crore in 2018-19), according to the latest data released by the Agriculture and Processed Food Exports Development Authority (APEDA).

The top three products, basmati rice, buffalo meat and non-basmati rice, which accounted for close to 60 per cent of total exports during the year, were in the red due to weak demand and pricing. Cumulatively, the top three products saw a contraction of 15 per cent in dollar value at $9.59 billion ($11.36 billion). Groundnut and processed vegetables were among the only few products that beat the trend and registered growth during the year.

Basmati exports dip

Shipments of basmati rice saw a marginal increase in volume at 44.54 lakh tonnes (44.14 lakh tonnes in the previous year), but fell 7.4 per cent in value at $4.37 billion ($4.72 billion), on account of weak realisations. The average per-tonne realisation for basmati was down by 8.3 per cent at $981 ($1070). Basmati rice exports accounted for 27 per cent of total exports under the APEDA basket of products.

Similarly, buffalo meat shipments were lower at 1.15 million tonnes (1.23 mt) on weak demand. The decline in pricing resulted in an 11 per cent decline in realisations at $3.2 billion ($3.59 billion). Rupee value exports of buffalo meat were down 9.7 per cent at ₹22,661 crore (₹25,091 crore).

Non-basmati rice shipments were down by 35 per cent at 50.36 lakh tonnes (76.47 lakh tonnes) as demand took a hit due to higher pricing of Indian produce compared to other competitors such as Thailand and Vietnam. Non-basmati shipments were down 33 per cent in dollar terms at $2.02 billion ($3.04 billion), while in rupee terms, the exports were 32 per cent lower at ₹14,353 crore (₹21,271 crore)

Groundnut shipments jumped 51 per cent to $716 million ($474 million) on growth in volumes and pricing due to improved demand from countries such as Vietnam. Groundnut export volumes stood at 6.64 lakh tonnes (4.89 lakh tonnes). Similarly, processed vegetables were up 6 per cent at $311 million ($295 million).

Dairy, horticulture and floriculture exports down

Shipment of fresh fruits and vegetables fell 13 per cent to $109 million ($125 m). Exports of pulses were down 19 per cent at $ 211 million ($260 million), while guargum shipments fell 33 per cent to $451m ($676 million).

Dairy products also witnessed a major decline of 42 per cent to $280 million ($483 million). Floriculture exports also witnessed a fall of 7 per cent to $77 million (82 million) during the year.

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Published on July 03, 2020
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