India's Agri Exports Drop by 3% Amid Red Sea Crisis

India's agricultural exports in April-June 2024 dropped by 3%, driven by the Red Sea crisis and rising freight costs. APEDA Chairman Abhishek Dev cited challenges like container shortages and higher local maize prices. Despite flat rice exports, fruits and vegetables saw a 6.47% growth.

India's agricultural exports fell by 3% in the first quarter of the 2024 fiscal year due to the ongoing Red Sea crisis, according to the Agricultural and Processed Food Products Export Development Authority (APEDA). Chairman Abhishek Dev highlighted multiple challenges dragging down export figures.

Addressing a press conference, Dev noted that agri exports amounted to USD 5886.81 million during April-June 2024, compared to USD 6083.83 million last year. He attributed the decline to heightened freight costs, container shortages, and tight domestic supply conditions.

Particularly impacted was maize, with exports plummeting by 76% to USD 60 million, a significant drop from USD 517.80 million in the same period last year. Despite robust production in India, higher local prices deterred international buyers, said Dev. Other commodities experienced declines as well: cashew exports fell by 17%, oil meals by 25%, and rice exports remained flat.

Rajesh Agrawal, Additional Secretary of the Commerce Ministry, noted that while rice exports showed no growth due to export controls, fruits and vegetables recorded a 6.47% rise. Efforts are ongoing to expand the agri export network by integrating 1,200 Farmer Producer Organizations (FPOs), with plans to double this figure to 2,500 within the fiscal year.

Agrawal added that APEDA is working on a pilot program to onboard FPOs and exporters onto the ONDC platform. So far, 13 exporters have joined. The initiative aims to enlist 250 exporters/FPOs. Additionally, the focus is on diversifying India's agricultural export basket to include 25 new products and enter new markets.