India is the world’s second-largest producer of food after China. It has the potential to become the global leader in food production. The country is home to a large population, so there is a huge demand for food. India has many different types of climates which allow for a wide variety of crops to be grown. The main agricultural products that are export from India are rice, wheat, sugar, tea, cotton, spices, and tobacco.
Agricultural seed exporters in India play an important role in Indian agriculture. They provide quality seeds at affordable prices to farmers across the country. They help increase crop yield and also improve farmers’ livelihoods by providing them with employment opportunities.
Export trends
India has a large agricultural export market. In 2021–2022, the country increased its agriculture export revenue by 20% from $41 billion in 2021–2023. The Indian agriculture sector exports mainly agricultural and allied products, marine products, plantation products, textiles, and related products. Exports of agricultural and agro-allied products are estimated at 33.33 billion dollars. Expected to expand by 17% between 2019 and 2021. Rice was India’s biggest export agricultural commodity in 2021 – 22 which accounted for over 19% of total agriculture export.
Potential of agriculture exports in India
The Indian economy has been on a strong upswing in recent years. Driven by robust economic reforms and favorable macroeconomic conditions. One of the key drivers of this growth has been exports which have grown at a compound annual rate of 15% (in dollar terms) since 2000. In FY2017, exports accounted for 19% of India’s GDP, compared to just 11% in FY2000.
Agriculture exports have played a significant role in this export growth story – they grew at a CAGR of 18% between 2001 and 2016 (in dollar terms). The share of agriculture exports in total merchandise exports increased from 10% in 2001 to 17% by 2016. This increase was drive strong global demand for Indian agriculture products as well as domestic policy measure such as minimum support prices (MSP) and export subsidies.
Looking ahead this is consider the potential for further growth in agriculture exports from India give its large production base, vast geographical area, diverse climate condition, etcetera, which enable the cultivation of almost all types of crops throughout the year. Moreover, an increase in regular global population and income levels are expect to lead to higher demand for food items globally, which presents a good opportunity for Indian exporters. Additionally, many developed countries are facing problems related to land availability & water scarcity which could lead them towards outsourcing their agricultural needs thereby providing another avenue for export expansion.
Reasons to choose India for agriculture exports
India the world’s second-most populous country with over 1.3 billion people. emerging market with great potential for agricultural exports. Here are three reasons why:
The Indian government is supportive of agricultural exports, providing financial incentives and infrastructure development assistance to growers and exporters.
India has a diverse climate that allows for the cultivation of a wide range of crops, from tropical fruits to temperate vegetables. This diversity gives Indian growers a competitive advantage in meeting the needs of global markets. Many factors contribute to India’s success in agriculture, such as:
If you’re looking for a country with vast tracts of land available for agriculture, India is a perfect choice. With over 190 million hectares of cultivable land, there’s plenty of room to grow your business. And thanks to the diverse climate conditions across India, you can produce crops all year round.
Water resources are also plentiful in India, with an estimated 1,869 cubic kilometres of renewable water available each year. This means that irrigation isn’t a problem – even in dry regions like Rajasthan. Plus, the soil in India is incredibly fertile, making it ideal for agricultural exports.
Government initiatives
The Agricultural and Process Food Product Export Development Authority (APEDA) set up by the Government of India under the Ministry of Commerce and Industry in 1986 for the development and promotion of exports from India.
It is one of the 19 export promotion councils or commodity boards functioning under the Department of Commerce, Ministry of Commerce & Industry. The mandate given to APEDA is to promote exports from agriculture, horticulture, livestock products, dairy products, etc. In tune with its objective, various schemes have been launched by APEDA from time to time which is briefly explained as follows: –
Market Access Initiative Scheme: The scheme provides financial assistance for participation in international trade fairs or exhibitions, inward buyer-seller meets, etc. The main objectives of this scheme are to create awareness about Indian agricultural products among foreign buyers and develop new markets for Indian agricultural product exports. Reimbursement under this head is limited to 50%of eligible expenditures incurred subject to a maximum ceiling as decided by APEDA from time to time but not exceeding Rs. 20 lakhs per event in general and Rs 30 lakhs per event in case it’s held outside India.
Under this heading, expenses for airfare, ocean freight, samples, and publicity material are also reimbursed. However, no reimbursement is admissible for the cost of land transportation within India or abroad. To maintain continuity and sustainability of the efforts expended on market development, a minimum gap of five years has been prescribed between successive claims under the same event by an organization that has already availed itself of the benefit once before claiming it again.
This provision however does not apply to events like World Trade Fairs where fresh participation is mandatory every year for maintaining one’s presence in these events as well as to those buyer-seller meets typically organized during these fairs where both fresh and repeat participation from Indian exporters would be encouraged to showcase their products lineup every year before potential overseas buyers attending these fairs.
Technical Assistance Scheme: Under this scheme, technical assistance is funded for carrying out studies relating to product and process improvement, feasibility studies, etc. to promote non-traditional exportable items or value additions to traditional items with better shelf lives so that they become competitive.
Conclusion
Agricultural seed exports from India have grown significantly in recent years, due to the increasing demand for high-quality seeds globally. Indian agricultural seed exporters are well-positioned to meet this growing demand, due to their experience and expertise in producing quality seeds. In addition, they can offer competitive prices for their products, which makes them an attractive option for many buyers worldwide.