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Food Exports of India

India is among the 15 leading exporters of agricultural products in the world. Primarily an agrarian country, India has its diverse regional and climatic advantages. The country leverages this, to cultivate agricultural/horticultural foods that are world-renowned, for, example – Basmati rice, Alphonso mangoes, etc. The Indian food and grocery market is the world’s sixth-largest, with retail contributing 70% of the sales.

Indian Food Exports

India exports approximately 70% of its commodities and agricultural products to neighboring countries such as Africa, the Middle East, and other regions in Asia-Pacific, and the remaining to Europe and the United States.

  1. India ranks second in the production of fruits and vegetables in the world, after China.
  2. The major destinations for Indian fruits and vegetables are UAE, Nepal, Malaysia, Netherland, UK, Sri Lanka, Bangladesh, Oman, and Qatar.
  3. India is the largest producer of cereal as well as the largest exporter of cereal products in the world.

Government Initiatives

In the Union Budget 2021-22, intending to enhance the agricultural infrastructure at regulated markets, Finance Minister – Nirmala Sitharaman declared that Agricultural Produce Marketing Committees (APMCs) will become the beneficiaries of the financing of Rs.1 lakh crore (US$ 13.72 billion) under the Agriculture Infrastructure Fund (AIF). In addition:

  1. The Food Safety and Standards Authority of India (FSSAI) plans to invest around Rs.482 crore (US$ 72.3 million) to strengthen the food testing infrastructure in India, by upgrading 59 existing food testing laboratories and setting up 62 new mobile testing labs across the country.
  2. The Indian Council for Fertilizer and Nutrient Research (ICFNR) will adopt international best practices for research in the fertilizer sector, which will enable farmers to get good quality fertilizers at affordable rates and thereby achieve food security for the common man.

Market Statistics

As per the Directorate General of Commercial Intelligence and Statistics (DGCIS) Annual Report – In the financial year 2021 (April-December20), India’s agricultural exports stood at US$ 28.49 billion. And by 2022, driven by the import demand from the Middle East and China, the agricultural export market is estimated to touch approximately US$ 60 billion.

According to more detailed statistics by the Indian Brand Equity Foundation (IBEF) – India exported a whopping US$ 3.88 billion worth of basmati rice, US$ 1.84 billion worth of non-basmati rice, US$ 3.01 billion worth of buffalo meat, and US$ 2.71 billion worth of other processed foods. Among the top 10 export categories of India, cereals stood 9th with a 22.7% increase from 2019 to 2020. Also, as Iran has lifted the ban on the import of Basmati rice from India, it will add an impetus to the already improving cereal export volume to the Middle East market in 2021.

In the year 2019-20, India exported fruits and vegetables worth Rs.9,182.88 crores/ 1,277.38 USD Million which comprised of fruits worth Rs.4,832.81 crores/ 668.75 USD Million and vegetables worth Rs.4,350.13 crores/ 608.48 USD Million. Amongst fruits, the country ranks first in the production of Bananas (25.7%), Papayas (43.6%) and Mangoes (including mangosteens and guavas) (40.4%).

To give an overall preview, exports of agricultural and processed food products equaled US$ 28.94 billion in the financial year 2020 (till January 2020) – as suggested by The Agricultural and Processed Food Products Export Development Authority (APEDA).

The Return of Organic Farming in India

The estimates indicate that the organic food segment in India will grow at a Compound Annual Growth Rate (CAGR) of 10% during 2015-25. It was at Rs.2,700 crore (US$ 386.32 million) in 2015 and is expected to reach Rs.75,000 crore (US$ 10.73 billion) by 2025.

Until the mid-1900s, India relied mostly on organic farming. It was the then developed countries that started using chemicals and pesticides to boost agricultural production. To ensure food security for their own people, India too started using chemical-intensive agricultural practices.
However, in recent times, the farmers are seen to be reverting to the older ways and cultivating harmful chemical-free food products. This has happened owing to the increasing awareness about the damages imparted by the use of harmful chemicals and pesticides and also, a rise in the popularity of organic and healthy foods for better living.

Benefits of Organic Foods

There are myriads of health benefits attached to organic food consumption. And the world is intentionally turning to organic foods as part of their healthier lifestyle choice. Here are a few benefits of organic foods:

  1. Studies reveal that organic fruits and vegetables have 50% more antioxidants, which scientists believe can reduce cancer and heart disease risks.
  2. Organic foods aid in improving the immune system, facilitate healthier sleeping patterns, and lowers obesity risks.
  3. In addition to being tastier than chemically-altered produce, it is especially good for babies, children, and pregnant women.

Increasing awareness among the farmers and the government concerning the growing popularity and price premium for the exports of organic produce has boosted the organic food export sector. The Government of India has been designing favorable schemes to encourage organic farming among the farmer population in the country. This has resulted in the emergence of many specialized organic.
Through our partners The World Trade Hub provides more than 200 certified products such as cereals and pulses, spices, rice, wheat, sweeteners, oil, ghee, oilseeds, dry fruits and nuts, millets, barley, and superfoods as part of its organic food portfolio.

Challenges

There seems to be a lack of coordination between the exporters and the government authorities (such as the Ministry of External Affairs, MPEDA, APEDA, FSSAI, and a few more) that poses an obstacle in easy access to market and expansion of the existing markets. The presence of many authorities involved in the market access protocols is a major hindrance that can be resolved by embracing a more streamlined approach. This will promote flexibility and enable easier processing of external requests from other countries for Indian food exports. In short, India needs a more unified body to oversee the affairs of food exports of the country.

Closing Thoughts

Owing to the availability of excellent varieties of Indian agricultural products at discounted rates, a rise in the demand for such food products in the Middle East and other countries is expected to rise considerably.
With the advancement in technology and government support, Indian food exports have a positively bright future ahead. In addition to India’s varied agro-climatic conditions that permit the cultivation of diverse crops, the quality, and traceability of food products ensured by food regulators add value to its demand. Also, an intelligent logistics and supply chain to reach urban markets and ports for exports, makes India the prime country for exporting food products to the rest of the world.

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