{"id":48418,"date":"2025-05-28T10:32:47","date_gmt":"2025-05-28T05:02:47","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=48418"},"modified":"2025-05-28T12:39:40","modified_gmt":"2025-05-28T07:09:40","slug":"how-ftas-with-us-eu-uk-could-reshape-indian-agriculture-trade","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/how-ftas-with-us-eu-uk-could-reshape-indian-agriculture-trade\/","title":{"rendered":"How FTAs with US, EU &#038; UK Could Reshape Indian Agriculture Trade"},"content":{"rendered":"<h2>India Agriculture FTAs Latest News<\/h2>\n<ul>\n<li>Between 2013-14 and 2024-25, India\u2019s agricultural exports grew modestly by just over 20%, rising from $43.3 billion to $51.9 billion.\u00a0<\/li>\n<li>In contrast, agricultural imports surged by 148% during the same period, from $15.5 billion to a record $38.5 billion. This sharp rise in imports has led to India\u2019s farm trade surplus shrinking significantly\u2014from $27.7 billion to $13.4 billion.\u00a0<\/li>\n<li>Notably, in 2024-25 alone, agri-exports rose 6.4%, outpacing the flat overall export growth, while farm imports jumped 17.2%, far above the 6.2% rise in total merchandise imports.\u00a0<\/li>\n<li>These trends unfold as India negotiates FTAs with the US and EU, both of which are pushing for lower tariffs and greater access to Indian markets for their agricultural products.<\/li>\n<\/ul>\n<p><img decoding=\"async\" src=\"https:\/\/vajiram-prod.s3.ap-south-1.amazonaws.com\/unnamed_3_47d964f0c0.webp\" alt=\"unnamed (3).webp\" \/><\/p>\n<h2>Key Export Drivers<\/h2>\n<ul>\n<li><strong>Marine Products<\/strong>\n<ul>\n<li>It is India\u2019s top farm export, but earnings declined from $8.1 billion in 2022\u201323 to $7.4 billion in the next two years.\u00a0<\/li>\n<li>Major markets include the US (35%), China (20%), and EU (15%).<\/li>\n<li><strong>Concern<\/strong>: US tariffs (17.7%) on frozen shrimp could rise further, affecting competitiveness.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rice Exports at Record Highs<\/strong>\n<ul>\n<li>Combined basmati (6.1 mt) and non-basmati (14.1 mt) rice exports hit $12.5 billion in 2024\u201325.<\/li>\n<li>Markets: Basmati to West Asia; non-basmati to Africa.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth in Other Segments<\/strong>\n<ul>\n<li>Record-high exports of:\n<ul>\n<li><strong>Spices:<\/strong>\u00a0Especially chilli, cumin, turmeric, mint, etc.<\/li>\n<li><strong>Tobacco:<\/strong>\u00a0Boosted by crop failures in Brazil and Zimbabwe.<\/li>\n<li><strong>Coffee:<\/strong>\u00a0Higher demand due to global shortage; India mainly exports robusta beans and powder.<\/li>\n<li><strong>Fruits &amp; Vegetables:<\/strong>\u00a0Both fresh and processed saw growth.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Export Setbacks<\/h2>\n<ul>\n<li><strong>Wheat and Sugar<\/strong>\n<ul>\n<li>Exports peaked recently but are now restricted due to domestic shortages.<\/li>\n<li>Wheat peaked at $2.1 billion (2021\u201322).<\/li>\n<li>Sugar peaked at $5.8 billion (2022\u201323), with only white sugar exports continuing\u2014processed from imported raw sugar.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Cotton Collapse<\/strong>\n<ul>\n<li>India was once a major cotton exporter (over $4.3 billion in 2011\u201312), but exports have collapsed, turning India into a net importer.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Buffalo Meat<\/strong>\n<ul>\n<li>Recovered to $4 billion in 2024\u201325 but still below the 2013\u201315 levels of $4.4\u20134.8 billion.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Interesting Case of Spices<\/h2>\n<ul>\n<li>In 2024\u201325, India witnessed record highs in both spice exports and imports.\u00a0<\/li>\n<li>While it remains a leading exporter of non-traditional spices like chilli, cumin, turmeric, mint products, oleoresins, and curry powders, it has become a net importer of traditional plantation spices\u2014pepper and cardamom.<\/li>\n<\/ul>\n<h2>Major Agricultural Imports<\/h2>\n<ul>\n<li><strong>Vegetable Oils &amp; Pulses Dominate Imports<\/strong>:\n<ul>\n<li>India\u2019s top farm imports remain edible oils and pulses.<\/li>\n<li>Pulses imports reached a record $5.5 billion in 2024\u201325.<\/li>\n<li>Low yields and absence of MSP-backed procurement have deterred domestic expansion.<\/li>\n<li>Oilseed exports (mainly groundnut and sesame) and residual meal provide only partial offset.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rising Imports Due to Domestic Production Challenges<\/strong>\n<ul>\n<li><strong>Cotton<\/strong>\n<ul>\n<li>Production has declined from 398 lakh bales (2013\u201314) to 291 lakh bales (2024\u201325), owing to stagnant yields and lack of innovation post-GM Bt hybrids.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Natural Rubber<\/strong>\n<ul>\n<li>Annual production averaged 8.5 lakh tonnes in recent years, down from 9\u20139.1 lakh tonnes a decade ago, while consumption has surged to 15 lakh tonnes.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li><strong>Other Notable Imports<\/strong>\n<ul>\n<li><strong>Fruits and Dry Fruits<\/strong>\u00a0&#8211; Includes almonds, pistachios, walnuts, apples, dates, figs, and raisins.<\/li>\n<li><strong>Spices\u00a0<\/strong>&#8211; Mainly pepper and cardamom, which India now imports more of despite being a major spice exporter.<\/li>\n<li><strong>Alcoholic Beverages<\/strong>\u00a0&#8211; Imports of wines and spirits continue to grow, with potential for further rise under new trade deals.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2>Trade Agreements and Future Implications<\/h2>\n<ul>\n<li>The signing of trade agreements with the US, EU, and UK is expected to increase India\u2019s imports of dry fruits, wines, and spirits.\u00a0<\/li>\n<li>Additionally, the US may push for lower import duties and relaxed non-tariff barriers on genetically modified (GM) crops like maize, soybean, and cotton.\u00a0<\/li>\n<li>These changes could significantly impact India\u2019s agricultural trade balance, potentially reducing the current surplus.<\/li>\n<\/ul>\n<h2>India Agriculture FTAs FAQs<\/h2>\n<p><strong>Q1.<\/strong>\u00a0How have India\u2019s farm exports performed recently?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Agri-exports rose 6.4% in 2024\u201325, driven by rice, spices, and tobacco, despite declines in marine products.<\/p>\n<p><strong>Q2.<\/strong>\u00a0Why are agri-imports increasing?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Domestic yield issues and lack of MSP support for pulses, cotton, and oils drive higher imports.<\/p>\n<p><strong>Q3.<\/strong>\u00a0What\u2019s the trend in spice trade?<\/p>\n<p><strong>Ans.<\/strong>\u00a0India is a top spice exporter but now imports more pepper and cardamom due to domestic shortfalls.<\/p>\n<p><strong>Q4.<\/strong>\u00a0How could FTAs impact Indian agriculture?<\/p>\n<p><strong>Ans.<\/strong>\u00a0FTAs may reduce tariffs, increasing imports of dry fruits, wines, and GM crops, potentially shrinking the trade surplus.<\/p>\n<p><strong>Q5.<\/strong>\u00a0Which farm sectors are vulnerable?<\/p>\n<p><strong>Ans.<\/strong>\u00a0Marine exports, cotton, and sugar face risks from trade shifts, high tariffs abroad, and declining domestic output.<\/p>\n<p><strong>Source:\u00a0<\/strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/fta-us-eu-uk-will-impact-india-farm-trade-agri-10028540\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India&#8217;s FTAs may boost agri-imports, impacting its farm trade surplus. Explore key exports, import trends, and FTA implications on agriculture.<\/p>\n","protected":false},"author":8,"featured_media":48422,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[607,60,22,59],"class_list":{"0":"post-48418","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-india-agriculture-ftas","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/48418","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\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=48418"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/48418\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/48422"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=48418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=48418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=48418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}