Business

India’s Agricultural Exports Surge; Driven By Rice Shipments And Robust Global Demand

India’s agricultural and processed food exports have experienced a significant boost, rising by over 11% year-on-year to reach $17.77 billion during the April-December period of the current financial year. This growth follows the government’s decision to lift most of the restrictions on rice exports, which has spurred a surge in shipments.

Data from the Directorate General of Commercial Intelligence and Statistics (DGCIS) reveals that rice exports alone have surged by more than 19% during the first nine months of FY25, reaching $8.72 billion. This compares to $6.44 billion in the same period last fiscal year.

In September 2024, the Indian government removed nearly all restrictions on rice exports, including the minimum export price and export duties on both basmati and non-basmati rice. As a result, exporters are optimistic that rice exports for the entire fiscal year will increase by 10%, driven by strong global demand.

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Last fiscal year, rice exports had dropped by 6.5%, totaling $10.41 billion, due to restrictions imposed to safeguard domestic supplies. At present, however, India has a ban in place on the export of broken rice.

India Outpaces Competitors In Global Rice Trade

India is on track to meet its export target of 5 million tonnes of rice for the current fiscal year. As Ranjit Singh Jossan, Managing Director of Jossan Grains, a leading basmati rice exporter from Punjab, noted, India has outpaced its closest competitor, Pakistan, which exports less than one million tonnes annually. Despite payment settlement issues with Iran, exporters report that global demand for basmati rice remains strong.

Trade experts believe that India’s dominance in the global rice market is set to rise again, with an increase in shipments to Africa and Southeast Asia. India has been the world’s largest rice exporter for over a decade.

Strong Growth In Other Agricultural Exports

Other segments of India’s agricultural exports also showed strong growth during the April-December period. Exports of buffalo meat, dairy, and poultry products rose by more than 10% year-on-year, reaching $3.64 billion, up from $3.3 billion in FY24.

Over the past decade, global demand for Indian buffalo meat has grown significantly, due to its high quality and nutrient value. The meat is processed and exported in compliance with World Organization for Animal Health guidelines, which ensures risk mitigation in the export process.

The shipment of fresh fruits and vegetables also saw a solid increase of over 5%, totaling $2.65 billion. Additionally, exports of cereal preparations rose by more than 10%, reaching $2.03 billion during the same period.

APEDA Sets Ambitious Export Targets

The Agricultural and Processed Food Products Export Development Authority (APEDA) has set an ambitious export target of $26.56 billion for FY25. Products under the APEDA umbrella account for around 51% of total agricultural exports, with the remaining share consisting of marine products, tobacco, coffee, and tea.

 

Richa Kaushik

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