Agricultural Exports Dip Amidst Red Sea Crisis and Container Shortages

The country's agricultural and processed food exports fell by 3% to USD 5.88 billion in April-June due to the Red Sea crisis, rising freight costs, and container shortages. While exports of rice, some cereals, cashew, and oil meals declined, fruits, vegetables, and certain processed items saw positive growth.

The country's exports of agricultural and processed food products fell by 3% to USD 5.88 billion during April-June this fiscal, according to APEDA data. The decline is attributed to the Red Sea crisis, increased freight costs, and a shortage of containers.

The Agricultural and Processed Food Products Export Development Authority (APEDA), established under the commerce ministry, reported that the higher tariffs on Chinese imports by the US, effective from August 1, exacerbated the container shortage.

Notably, the first quarter saw a drop in rice, some cereals, cashew, and oil meal exports. Rice exports fell marginally to USD 2.8 billion, while cashew exports saw a sharp decline of 17% to USD 68.63 million. However, fruits, vegetables, and certain processed items reported growth, and basmati rice exports increased by 13% to USD 1.03 billion during April-May.