Agri and processed food exports up by 9% in FY23

Exports of Indian agricultural and processed food products increased by 9% to US$ 26.3 billion in 2022-23 as compared to FY22 driven by a spike in the shipment of rice, fruits and vegetables, livestock, and dairy products, according to a report from the Directorate General of Commercial Intelligence and Statistics.

The shipment of products under the Agricultural and Processed Food Products Exports development authority (APEDA) basket surpassed the target of US$ 23.56 billion for FY23.

According to the report, fresh and processed fruits and vegetables reported export growth of 18.8% to US$ 3.8 billion in the last fiscal year. The shipment of cereals, preparations, and processed food products rose by 20% to US$ 4.3 billion in FY23. On the other hand, the export of meat, dairy, and poultry products decreased last year to US$ 4 billion, compared to the previous fiscal. However exports realisation, in terms of rupees, rose by 4% to INR 32,334 crore in FY23.

India has been the world’s largest exporter of rice in the last decade and currently has a 45% share in the global grain trade

According to the United States Department of Agriculture (USDA), India’s prices are the most competitive among global suppliers and its total supply of rice is near-record high. As a result, India experienced a surge in rice exports in the current fiscal and, which is being shipped to more than 75 countries. The value of rice exports in FY23 rose by more than 15% year-on-year to a record US$ 11.1 billion from US$ 9.6 billion in the previous fiscal. Regarding volume, rice shipment grew by 5% to 22.34 million tonnes (MT) last fiscal year-on-year.

The increased realisation in rice exports has been achieved despite India banning broken rice shipments and imposing an export tax of 20% on white rice. Experts attribute the spike in rice exports to factors such as robust global demand, especially from West Asian countries, Africa, Europe, and Pakistan.

Source: Financial Express