Country specific strategies, diplomatic push and targeted promotion ensured stellar FY21 for Agri exports

Street Vendors and customers at a wholesale vegetable and fruit market in New Delhi (REUTERS)

In a year when trade was crippled by logistical challenges and crashing demand, agricultural and marine exports have seen a major rise even when all other sectors have seen forex earnings drop.

This increase comes two years after the government implemented the Agriculture Export Policy, 2018, overhauling export strategy, finding demand for select Indian foods, and actively encouraging farmers to cultivate them.

"For most Agri products, we followed a four-pronged strategy to pinpoint global demand, locate new markets, secure market access and aggressively push Indian products," a Department of Commerce official said.

After remaining stagnant for the past three years at $38.43 billion in 2017-18, $38.74 billion in 2018-19 and $35.16 billion in 2019-20, the export of agriculture and allied products (including marine and plantation products) jumped to $41.25 billion in 2020-21.

This represented a stunning 17 percent rise. On the other hand, overall exports from India suffered a 7.2 percent fall to $ 256.34 billion, down from the $ 313 billion in 2020-21.

Newer markets

Beginning in 2019, the government had begun drawing up country specific Agri export strategies after interactions with 60 Indian diplomatic missions across the world.

As a result, 13 separate Agri cells were established at Indian diplomatic outposts globally, whose job it is to provide inputs on a real-time basis to further strengthen the existing market intelligence, officials said.

"Major promotional campaigns were put up in these places in 2019 right until the pandemic hit, which included tasting sessions for Indian products, discussions over phytosanitary norms, and finally buyer-seller meets," a senior official said. This resulted in one of the fastest growths in terms of markets served by Indian Agri exports, he added.

Phytosanitary certification is used to attest that consignments meet the requirements of the importing country, which is duly reflected in the bilateral contract.

However, the largest markets for India’s agriculture products continue to be the United States, China, Bangladesh, UAE, Vietnam, Saudi Arabia, and Indonesia, among others.

Exports to most of these destinations have registered an increase, with the highest growth being recorded for Indonesia (102 percent) and Bangladesh (96 percent).

Major push to signature food exports from various states.

Getting access

The government has vigorously sought market access for Indian products across the world in new markets.

In the absence of a free trade mechanism between two countries, market access refers to a system by which one nation grants the other permission to export its products after satisfying trade, health, and tariff conditions.

Aggressively securing market access for a bouquet of new products have also resulted in Indian fruits, vegetables and food being shipped for the first time ever to corners of South America, Central Asia and Eastern Europe.

"India has recently gained market access for pomegranate in Australia; mango and Basmati rice in Argentina; carrot seeds in Iran; wheat flour, basmati rice, pomegranate arils, mango, banana and soybean oilcake in Uzbekistan; tomato, okra and onion in Bhutan; and oranges in Serbia," a senior official from the Agricultural and Processed Food Products Export Development Authority (APEDA), said.

The government has, however, struggled to spread out the benefits of Agri opportunities across the entire country.

"Decentralization in export development among the notified Agri clusters has certainly helped but will take more time," an official admitted.

He added that for the first time ever, products from Uttar Pradesh’s hinterland regions, such as fresh vegetables and mangoes from Varanasi and black rice from Chandauli, have been exported. Similarly, oranges from Nagpur and bananas from Theni, Tamil Nadu and Anantapur, Andhra Pradesh, have also been shipped abroad.

Expanding export basket

While India's farm products have great diversity, they mostly operate on volumes to earn a profit. The government believes that historically, central planning has led the sector to focus only on the farming of select grains, pulses, and fruits, thereby restricting India from hitherto tapping into the high value export market.

Now, higher quality products, which command bigger value in richer markets have also been given a push.

Said M Angamuthu, Chairman, APEDA: "Indian organic products, nutraceuticals and health food are gaining more demand in the overseas market. India’s organic products have been exported to 58 countries including the USA, European Union, Canada, Great Britain, Australia, Switzerland, Israel, South Korea."

Export of organic food products grew by 39 percent to 8.8 lakh metric tonne (MT) during financial year (FY) 2020-21 compared to 6.4 lakh MT shipped in 2019-20.