{"id":74500,"date":"2025-11-22T11:29:00","date_gmt":"2025-11-22T05:59:00","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=74500"},"modified":"2025-11-22T11:29:00","modified_gmt":"2025-11-22T05:59:00","slug":"indias-agriculture-exports-surge-despite-us-tariff-barriers","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/indias-agriculture-exports-surge-despite-us-tariff-barriers\/","title":{"rendered":"India\u2019s Agriculture Exports Surge Despite U.S. Tariff Barriers"},"content":{"rendered":"<h2><b>Agriculture Exports Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s agricultural exports have grown significantly faster than its overall merchandise exports.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In April\u2013September 2025, farm exports rose by 8.8%, reaching $25.9 billion, compared to $23.8 billion in the same period of 2024.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This growth far outstripped the 2.9% increase in total goods exports during the same period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The trend is consistent with the previous financial year (2024\u201325), when agricultural exports increased by 6.4% (from $48.8 billion to $52 billion), while overall merchandise exports saw only a marginal 0.1% rise.<\/span><\/li>\n<\/ul>\n<h2><b>Key Drivers of India\u2019s Export Growth<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Strong Performance by Major Agri-Export Segments &#8211; <\/b><span style=\"font-weight: 400;\">India\u2019s agricultural export growth in 2025-26 has been led by non-basmati rice, buffalo meat, marine products, coffee, and fruits &amp; vegetables \u2014 each surpassing or nearing previous record levels.<\/span><\/li>\n<li aria-level=\"1\"><b>Non-Basmati Rice: Growth After Lifting of Export Curbs<\/b><span style=\"font-weight: 400;\"> &#8211; Export buoyancy is largely due to the removal of restrictions imposed in 2022\u201323 to contain food inflation. With good monsoons and high government stocks, non-basmati rice exports are on track to exceed the record $6.5 billion achieved last year.<\/span><\/li>\n<li aria-level=\"1\"><b>Buffalo Meat: Set to Break Decade-Old Record<\/b><span style=\"font-weight: 400;\"> &#8211; Buffalo meat exports may surpass the 2014-15 peak of $4.8 billion, supported by rising demand in key markets.<\/span><\/li>\n<li aria-level=\"1\"><b>Marine Products: Rising Despite Trump Tariffs<\/b><span style=\"font-weight: 400;\"> &#8211; Marine product exports rose 17.4% in April\u2013September 2025 and could exceed the historic $8.1 billion (2022-23). Despite the 58% U.S. tariff, exports grew from $3.4 billion to $4 billion, as exporters diversified into China, Vietnam, Japan, Thailand, EU, and Canada.<\/span><\/li>\n<li aria-level=\"1\"><b>Coffee Exports: Driven by High Global Prices<\/b><span style=\"font-weight: 400;\"> &#8211; Coffee exports more than doubled from $739 million (2019-20) to $1.8 billion (2024-25) and may exceed $2 billion this year. The rise is driven mainly by soaring global prices as ending stocks fall to a 25-year low, rather than higher volumes.<\/span><\/li>\n<li aria-level=\"1\"><b>Fruits &amp; Vegetables: Consistent Growth in Fresh and Processed Form<\/b><span style=\"font-weight: 400;\"> &#8211; Both fresh and processed fruits &amp; vegetables continue steady export growth.<\/span><\/li>\n<\/ul>\n<h2><b>Global Food Prices as the Main Driver<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The FAO Food Price Index declined from 119.1 (2013-14) to 90 (2015-16), stayed below 100 until 2019-20, then shot up to 102.4, 133.1, and 140.6 in the next three years.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">As global prices softened afterward, India\u2019s farm exports also dipped to $48.8 billion (2023-24) and $52 billion (2024-25).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Export clampdowns on wheat, rice, sugar, onions, and de-oiled rice bran \u2014 imposed to control domestic inflation \u2014 further contributed to the fall in shipments.<\/span><\/li>\n<\/ul>\n<h2><b>Outlook for 2025\u201326: Prices and Tariffs to Shape Performance<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Export performance for the second half of 2025-26 will hinge on:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Global Commodity Prices<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">FAO index in October 2025 was 126.4, far below the 2022 post-Ukraine peak of 160.2.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Subindices for cereals (103.6) and sugar (94.1) hit multi-year lows.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Low global prices usually depress India\u2019s agri-export value.<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Trump Tariffs<\/b><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">US tariffs have begun to hurt: Marine products (26.9%); Spices (45.1%); Basmati rice (17.8%) (September YoY to the US).<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b style=\"font-size: inherit;\">Signs of Improvement: Tariff Rollback and Possible Trade Deal<\/b>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">There are positive developments:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A potential India\u2013US trade deal may materialise before year-end.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">The US President has rolled back tariffs on several food products \u2014 including spices, coffee, tea, and fresh fruits \u2014 directly benefiting Indian exporters.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>Rising Farm Imports Outpace Overall Import Growth<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s agricultural imports grew <\/span><b>5.9%<\/b><span style=\"font-weight: 400;\"> in April\u2013September 2025 (from $18.4 bn to $19.5 bn), outpacing overall imports, which rose <\/span><b>4.5%<\/b><span style=\"font-weight: 400;\"> during the same period.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Unlike exports, India\u2019s farm imports are not diversified and remain dominated by just a few commodities, primarily:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Vegetable oils<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pulses<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Fresh fruits<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Raw cotton<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Vegetable Oils: India\u2019s Top Import Item<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Vegetable oil imports soared 13.5% in April\u2013September 2025.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Imports are likely to approach the record $20.8 bn level of 2022\u201323.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">This remains India\u2019s single largest agricultural import.<\/span><\/li>\n<\/ul>\n<h3><b>Pulses: Imports Decline After Previous Surge<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Pulses imports hit an all-time high of $5.5 bn in 2024\u201325.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In 2025\u201326, they have fallen sharply due to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">A bumper domestic crop<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reimposition of import duties lifted earlier during high inflation.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Fresh Fruit Imports Expand Rapidly<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fresh fruit imports crossed $3 bn in 2024\u201325.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">April\u2013September 2025 imports were $1.5 bn.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The US is now the dominant supplier, accounting for 50.4%, thanks to high demand for:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Almonds<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Pistachios<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Walnuts<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Other dry fruits<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Raw Cotton: India Turns Net Importer<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has shifted from being a net exporter to a net importer of raw cotton.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Imports are expected to exceed $1.5 bn this fiscal.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The key reason: domestic yield stagnation due to the absence of new technologies post-Bt cotton.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <strong><a href=\"https:\/\/indianexpress.com\/article\/explained\/explained-economics\/indian-farm-exports-outperform-despite-trump-tariffs-10369650\/\" target=\"_blank\" rel=\"nofollow noopener\">IE<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>India\u2019s farm exports grow faster than total exports, driven by rice, seafood, meat, coffee, and F&#038;V, despite U.S. tariffs and falling global food prices.<\/p>\n","protected":false},"author":18,"featured_media":74514,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[3818,60,22,59],"class_list":{"0":"post-74500","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-agriculture-exports","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\/74500","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\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=74500"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/74500\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/74514"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=74500"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=74500"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=74500"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}