{"id":35239,"date":"2023-05-08T12:25:44","date_gmt":"2023-05-08T06:55:44","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=35239"},"modified":"2025-04-20T22:58:41","modified_gmt":"2025-04-20T17:28:41","slug":"why-indias-farm-exports-may-face-headwinds","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/why-indias-farm-exports-may-face-headwinds\/","title":{"rendered":"Why India\u2019s Farm Exports May Face Headwinds?"},"content":{"rendered":"<h3><strong>What\u2019s in today\u2019s article?<\/strong><\/h3>\n<ul>\n<li><strong>Why in News?<\/strong><\/li>\n<li><strong>India\u2019s Latest Farm Exports<\/strong><\/li>\n<li><strong>India\u2019s Latest Farm Imports<\/strong><\/li>\n<li><strong>What Are the Likely Risk Factors to India\u2019s Farm Exports?<\/strong><\/li>\n<li><strong>Government Initiatives to Promote Agricultural Exports<\/strong><\/li>\n<\/ul>\n<p><strong>\u00a0\u00a0<\/strong><\/p>\n<h2><strong>Why in News?<\/strong><\/h2>\n<ul>\n<li>Both agricultural exports from and imports into India have scaled new highs in the fiscal year that ended March 31, 2023.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>India\u2019s Latest Farm Exports<\/strong><\/h2>\n<ul>\n<li>Government data show the value of farm exports in April-December (9 months) 2022, at <strong>USD 39 billion<\/strong>.\n<ul>\n<li>This is 7.9% higher than the <strong>USD 36.2 billion<\/strong> for the corresponding period of the previous year.<\/li>\n<li>At this rate, the record USD 50.2 billion exports achieved in 2021-22 look set to be surpassed.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Factors behind the increase in Exports \u2013<\/strong>\n<ul>\n<li>The two big contributors to India\u2019s agri-export growth have been <strong>rice<\/strong> and <strong>sugar<\/strong>.<\/li>\n<li>India in 2021-22 <i><strong>shipped out an all-time-high 21.21 million tonnes (mt) of rice valued at USD 9.66 billion<\/strong><\/i>.<\/li>\n<li><i><strong>Sugar exports hit a record value of USD 4.60 billion in 2021-22<\/strong><\/i>, as against USD 2.79 billion, USD 1.97 billion, USD 1.36 billion, and USD 810.90 million in the preceding four fiscals.<\/li>\n<li>This fiscal has seen a further surge of 43.6%, <i><strong>from USD 2.78 billion in April-December 2021 to USD 3.99 billion in April-December 2022<\/strong><\/i>.<\/li>\n<\/ul>\n<\/li>\n<li>The exports of rice and sugar are well on course to touch, if not top, <i><strong>$11 billion and $6 billion respectively in 2022-23<\/strong><\/i>.<\/li>\n<\/ul>\n<h2>\u00a0<\/h2>\n<h2><strong>India\u2019s Latest Farm Imports<\/strong><\/h2>\n<ul>\n<li>Similar to exports, the imports are also growing.<\/li>\n<li>The imports of agri produce stood at <strong>USD 27.8 bn<\/strong> in Apr-Dec 2022.\n<ul>\n<li>This is a growth of 15.4% over the <strong>USD 24.1 bn<\/strong> for Apr-Dec 2021.<\/li>\n<\/ul>\n<\/li>\n<li>As a result, there has been a <i><strong>further shrinking of the surplus on the farm trade account<\/strong><\/i>.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/vajiramandravi-test.s3.us-east-1.amazonaws.com\/media\/content\/ckeditor\/2023\/05\/09\/image-20230509104017-1.png\" alt=\"\" \/>\u00a0<\/p>\n<p>Image Caption: India\u2019s Agricultural Trade<\/p>\n<ul>\n<li>The growth in imports has come mainly from three commodities \u2013\n<ul>\n<li>The first is <strong>vegetable oils<\/strong>, whose imports shot up from USD 11.09 bn in 2020-21 to USD 18.99 bn in 2021-22. Imports meet roughly 60% of India\u2019s vegetable oil requirements.<\/li>\n<li>The other three commodities are <strong>cotton<\/strong>, <strong>cashew<\/strong> and <strong>spices<\/strong>.\u00a0<\/li>\n<\/ul>\n<\/li>\n<li><strong>Key Factors behind the increase in Imports \u2013<\/strong>\n<ul>\n<li>India\u2019s cotton production has declined from <i><strong>398 lakh bales in 2013-14 to a 12-year low of 307.05 lakh bales in 2021-22<\/strong><\/i>.\n<ul>\n<li>The effects of not allowing new genetic modification (GM) technologies after the first-generation Bt cotton are showing, and impacting exports as well.<\/li>\n<li>A proactive approach is required in edible oils as well, where planting of GM hybrid mustard has been permitted with great reluctance.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h2><strong>What Are the Likely Risk Factors to India\u2019s Farm Exports?<\/strong><\/h2>\n<ul>\n<li>Agri-exports in the current fiscal could face headwinds from two sources \u2013\n<ul>\n<li><strong>International Prices \u2013<\/strong>\n<ul>\n<li>With two of the world\u2019s largest exporters (<strong>Russia<\/strong> and <strong>Ukraine<\/strong>) of wheat and other crucial crops entering a second year of war, the food prices are likely to remain elevated.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Domestic Prices \u2013<\/strong>\n<ul>\n<li>The second source is domestic, more specifically food inflation fears ahead of the 2024 national elections.<\/li>\n<li>The <i><strong>Union government banned wheat exports last May<\/strong><\/i>.<\/li>\n<li>This was followed by a ban on broken rice exports and the slapping of a 20% duty on all non-parboiled non-basmati shipments in September.<\/li>\n<li>Exports of sugar have also stopped since this month\u2019s start.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<p>\u00b7 \u00a0 \u00a0<\/p>\n<h2><strong>Government Initiatives to Promote Agricultural Exports<\/strong><\/h2>\n<ul>\n<li>Promotion of exports of agricultural products is a continuous process.<\/li>\n<li>To promote agricultural exports, the Government has taken several steps at State\/District levels.<\/li>\n<li><strong>Agriculture Export Policy 2018 \u2013<\/strong>\n<ul>\n<li>In order to boost farm exports, the Government introduced a comprehensive Agriculture Export Policy in 2018, with the following objectives \u2013\n<ul>\n<li>To diversify our export basket, destinations and boost high-value and value-added agricultural exports including focus on perishables.<\/li>\n<li>To promote novel, indigenous, organic, ethnic, traditional and non-traditional agri products exports.<\/li>\n<li>To provide an institutional mechanism for pursuing market access, tackling barriers and deal with sanitary and phytosanitary issues.<\/li>\n<li>To strive to double India&#8217;s share in world agri exports by integrating with global value chain at the earliest.<\/li>\n<li>To enable farmers to get benefit of export opportunities in overseas market.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>District as Export Hub Initiative \u2013<\/strong>\n<ul>\n<li>Under the DEH initiative, products including agricultural products with export potential have been identified in all <strong>733 districts across the country<\/strong>.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Transport and Marketing Assistance for Specified Agriculture Products \u2013<\/strong>\n<ul>\n<li>It is a Central Sector Scheme.<\/li>\n<li>It aims at providing assistance for the international component of freight to mitigate the freight disadvantage for the export of agriculture products.<\/li>\n<\/ul>\n<\/li>\n<li>Besides, <strong>Product specific Export Promotion Forums (EPF)<\/strong> for eight high potential agri products i.e., <i><strong>Grapes, Mango, Banana, Onion, Rice, Nutri-Cereals, Pomegranate, Floriculture &amp; Plant material<\/strong><\/i> have been created.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<hr \/>\n<h3><strong>Q1) What are the top 3 wheat producing states in India?<\/strong><\/h3>\n<p>Uttar Pradesh contributed 32.42% of the total wheat production in India.\u00a0Madhya Pradesh contributed 16.08% of the total wheat produced in India.\u00a0Punjab produced 15.65% of the total wheat in India.\u00a0Around 64% of India&#8217;s total wheat production is from these 3 states.<\/p>\n<h3>\u00a0<\/h3>\n<h3><strong>Q2) What are the top 3 cotton producing states in India?<\/strong><\/h3>\n<p>Gujarat, Maharashtra and Telangana are the major cotton producing states which produce about 65% of cotton production in the country.<\/p>\n<p>&nbsp;<\/p>\n<hr \/>\n<p><strong>Source:<\/strong>\u00a0<a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/india-farm-exports-drivers-risks-explained-8596742\/\" target=\"_blank\" rel=\"nofollow noopener\"><u>Why India\u2019s farm exports may face headwinds<\/u><\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Both agricultural exports from and imports into India have scaled new highs in the fiscal year that ended March 31, 2023.<\/p>\n","protected":false},"author":5,"featured_media":35240,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[],"class_list":{"0":"post-35239","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35239","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=35239"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/35239\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/35240"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=35239"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=35239"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=35239"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}