India cites rice export ban, red sea crisis, and maize price drop for 3.24% YoY decline in Agri exports

By Abhimanyu Sharma

A 3.24% year-on-year drop in the value of agricultural exports has been observed from April to June 2024. The export value declined from $6,083 million in the same period last year to $5,886 million this year.

While there was a 6.47% rise in exports of fruits and vegetables and a 12.40% increase in exports of cereal preparations and miscellaneous processed items, these gains were offset by a 76% fall in exports of other cereals, primarily maize. Additionally, exports of oil meals and cashews declined by 25.82% and 17.08%, respectively.

The Commerce Ministry attributes the fall in agri-exports in the first quarter of FY 2024-25 to three main factors: the ban on rice exports, the Red Sea crisis and a fall in global maize prices.

To counteract the decline and boost India’s agri-exports, the Agricultural and Processed Food Products Export Development Authority (APEDA) is implementing a pilot program. This initiative aims to onboard exporters and Food Processing Organisations (FPOs) onto the export vertical of the Open Network for Digital Commerce (ONDC).

APEDA is focusing on 25 products for export, most of which are not typically subject to export curbs like rice or onions. The goal is to secure a larger share of the global market for Indian agricultural products by diversifying export offerings and connecting FPOs with new markets to expand the overall export basket.

This article has been republished from The CNBCTV18.