Kolkata: Despite the Red Sea crisis in recent months, India's basmati export during the period from April to December 2023 witnessed an 11 per cent jump in volume and 19 per cent in value terms. Simultaneously, exports of bananas went up by 63%, lentils by 110%, fresh eggs by 160% and Kesar and Dasheri mango by 120% and 140%, respectively, according to figures released by the Agricultural and Processed Food Products Export Development (APEDA) on Saturday.
During the period from April to December 2023, the export value of basmati rice surged by 19%, reaching USD 3.97 billion compared to USD 3.33 billion in the previous year. Simultaneously, the quantity of exports witnessed a notable growth of 11%, increasing from 31.98 lakh metric tonnes to 35.43 lakh metric tonnes within the same timeframe.
Basmati rice found its way to the top markets, with Iran, Iraq, Saudi Arabia, the USA, and the UAE emerging as the top five destinations for these exports. This robust performance underscores the enduring popularity and global demand for basmati rice, further solidifying its position as a major agricultural product in India's export portfolio.
From its modest beginnings with annual exports of USD 0.6 billion in exports during 1987-88, proactive interventions by APEDA have taken agricultural exports to a remarkable figure of USD 26.7 billion in the fiscal year 2022-23. This journey of exponential growth is underscored by expanding the export basket to over 200 countries, showcasing a commendable Compound Annual Growth Rate (CAGR) of 12%.
In the fiscal period 2022-23, India's agricultural exports reached USD 53.1 billion, with APEDA contributing a significant 51% of India’s Agri-exports. In April-December 2023, among the 23 Principal Commodities (PCs) in APEDA's export basket, 18 exhibited positive growth.
Notably, 13 out of 15 large PCs, with exports exceeding USD 100 million in the previous year, experienced positive growth, with an average growth rate of 12%. Fresh fruits emerged as a standout performer, registering a remarkable growth of 29%. Moreover, the export of processed vegetables surged by 24% in the period, followed by miscellaneous processed items, basmati rice and fresh vegetables also saw substantial growth compared to the corresponding period last year. Notably, India has significantly expanded its fresh fruit export footprint, now serving 111 countries compared to 102 destinations in the previous year.
Meanwhile, CRISIL Ratings, in its report released today, said that despite disruption in trade caused by strife around the Red Sea, exports have fared better than expected in January, which can be partly attributed to proactive support by the government in the form of easier access to credit, creation of a Task Force to investigate non-tariff barriers and tackling sanitary and phytosanitary issues, among others.
While the numbers are encouraging, caution is warranted. Rising global tensions and unevenness in global growth, maintaining export momentum will not be an easy task. For instance, many core exports softened in January like electronic goods (9.3% v 14.4%), engineering goods (4.2% v 10.2%), and drugs and pharmaceuticals (6.8% v 9.3%). And some key agricultural exports have been under pressure partly due to the ban on rice exports. That said, exports of petroleum products rebounded (6.6% v -17.6%) after four months as crude oil prices saw a sequential uptick ($80.1/bbl in January vs $77.6/bbl in December).
Read more: India's Fresh Fruit Exports Surge 29%, Footprint Spreads To 111 Countries
