India’s agricultural exports have been reported to increase by about 20% to $50.21 billion during 2021-22, despite logistical challenges posed by the COVID-19 pandemic.
According to the Commerce and Industry of India, exports of rice was the top forex earner at $9.65 billion among Agri commodities during 2021-22, growing by 9.35% from the previous, adding that wheat exports jumped to $2.2 billion in 2021-22 against $567 million in the last fiscal.
Shipments of dairy products grew by over 96% to $634 million in 2021-22 from $323 million in 2020-21, while exports of bovine meat increased from $3.17 billion in 2020-21 to $3.30 billion in 2021-22. Export of poultry products rose to $71 million in 2021-22 from $58 million in the previous year, and sheep/goat meat exports were up by 34% to $60 million in 2021-22.
Major export destinations include Bangladesh, the UAE, Vietnam, the US, Nepal, Malaysia, Saudi Arabia, Indonesia, Iran, and Egypt, the Commerce and Industry Ministry noted.
Indian agriculture sector leading the way
The rise in export of agricultural and processed food products has been mainly due to the various initiatives taken by the Centre through the Agricultural and Processed Food Products Export Development Authority (APEDA), such as organizing B2B exhibitions in different countries, exploring new potential markets through product-specific and general marketing campaigns by the active involvement of Indian Embassies.
“We have also created a product matrix for 50 agricultural products, which has good scope for expanding our exports portfolios. More companies are expressing concern over delays in shipping goods made in China due to rising Covid cases and the country’s efforts to control infections,” the Commerce and Industry Ministry noted.
In an interview, the Chief Executive Officer of Flexport, Ryan Petersen, said, “some plants are closed, and finding truck drivers who are Covid-free to move cargo have caused supply chain delays,” adding that it now takes about on average 115 days for goods.
“Labor shortages are still hammering the world’s supply chains and logistics challenges as the pandemic enters its third year, with disruptions still varying from country to country. The majority of Shanghai’s 25 million residents have been under lockdown, causing factories to close and a shortage of trucks to move goods at the home of the world’s busiest container port.”
Ryan Petersen
Petersen said that some companies are diversifying by adding more suppliers to minimize the potential impact of disruptions to their supply chains. He said they are also buying from production bases closer to their key markets, such as Mexico. He also said it’s become more difficult to predict how long the supply chain disruptions would last because of the uncertainty over the pandemic and whether consumer behavior will change as social restrictions are lifted.
Amidst the supply chain challenges, India’s agriculture is leading the way, and all agrarian economies are advised to learn from them.
The Indian food industry is poised for tremendous growth
Agriculture is the primary source of livelihood for about 58% of India’s population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in FY20. At current prices, India’s share of agriculture and allied sectors in gross value added (GVA) stood at 17.8 % in FY20. India’s consumer spending will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%.
The Indian food industry is poised for huge growth, increasing its contribution to the world food trade every year due to its immense potential for value addition, particularly within the food processing industry. Indian food and grocery market is the world’s sixth-largest, with retail contributing 70% of the sales. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India, and is ranked fifth in terms of production, consumption, export, and expected growth. The total agricultural and allied products exports stood at US$ 41.25 billion in FY21.
Ghana and India’s economies share similarities
The Indian High Commissioner to Ghana, Mr. Rajaram, stated that Ghana, just like India, has the majority of its population living in rural areas. As such, he indicated that both governments should not forget that the future of their countries depends to a great extent on these people. He particularly emphasized the contribution of the rural folks in the agriculture sector of both countries.
Consequently, Mr. Rajaram said the two countries must make a deliberate effort to focus on the rural agrarian areas. This is especially so when implementing development programs, mainly agricultural services.
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