The Agricultural sector in India employs the highest number of people out of all industries. The Agricultural sector in India employs more than 152 million people. This works out to almost 60 percent of the Indian population.
India’s trade force has always been focused on increasing agricultural exports. It was so effective that even during the pandemic, India managed to increase their agri and agri allied products export by 18.49 percent. An impressive feat especially in these trying times.
Current Indian Export Trends
The global agricultural export chain had to take a hit during the pandemic. The current conflict between Ukraine and Russia too has impacted the global agricultural supply chain. But how do these two global events affect the Indian agricultural export trend?
Well, India had always had an export surplus with their agricultural produce. India especially excels in the export of
- Rough lentils
- Processed vegetables and
- Raw vegetables
What’s interesting is that during the financial year of 2019-2020, the value of export of agricultural products and other allied products was 2.31 lakh crore. However in the 2020-2021 period, at the height of the pandemic, that value rose to 2.74 lakh crore.
The agricultural commodities that saw the most were wheat, other cereals, rice, cotton, and vegetable oils.
Why is India Experiencing Current Export Trends?
Ukraine and Russia are two important cogwheels in the agricultural supply chain machine. They collectively export more than 30 percent of the world’s wheat export supply. With the Russian government going into conservation mode and putting up barriers to export, and Ukraine diverting supplies towards their own country, the world is facing a glut in the wheat export supply.
The disruption in the supply of wheat and other essential agri products from Ukraine and Russia has plunged the world into a food shortage. The G20 summit was banking on India to help out the countries with food shortages.
The excess of bumper stocks and two consecutive fruitful wheat harvests meant that India could have stepped up as the next mega supplier of wheat.
However, on the 19th of May 2022, the Indian government had to impose export bans on wheat. The Indian government said that they had to impose the wheat export ban citing the risk of food insecurity.
Right before the export bans were imposed;-
- Wheat and other cereal exports saw huge growth. India saw a seven-fold growth in wheat export.
- Basmati rice is popular all over the world. However in 2020-2021 other rice variants also saw a huge export growth. A 132% growth in fact. The opening up of the economy and the selling off of excess bumper stocks helped drive up this growth.
- Sugar, raw cotton, and processed vegetables also saw a huge jump in export volume from 2019-2020 to 2020-2021 before seeing a slight dip in 2021-2022
With so much happening in the world, it is getting hard to keep up with the wholesale prices of agricultural products. O’AgriFarm.com has the prices of almost all agricultural products and it updates dynamically.
O’AgriFarm is passionate about agriculture and imagines it as a vehicle for good. As it continues to grow, and endeavors to create a ripple by solving the issues with agricultural value chains, transforming the world as a better place in the process.
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