Agriculture exports declined by 3% to $5.88 billion in April-June 2024 due to global issues like the Red Sea crisis and falling maize prices, alongside an export ban on rice. Non-regulated exports showed a 3% increase, while regulated items saw a 12% drop. Basmati rice exports rose, but non-basmati rice fell. The Commerce Ministry is addressing non-tariff barriers (NTBs) with a new portal and task force.
Highlights
Agri Export Decline: Agriculture exports dropped 3% to $5.88 billion in April-June 2024 due to factors like the Red Sea crisis, falling global maize prices, and a rice export ban.
Non-Regulated vs. Regulated Exports: Non-regulated agriculture product exports increased by 3% to $3.38 billion in April-May 2024. In contrast, regulated items such as non-basmati rice and wheat saw a 12% decline.
Basmati vs. Non-Basmati Rice: Basmati rice exports rose by 13% to $1.03 billion in the early fiscal period, while non-basmati rice exports fell by 13% to $918.83 million.
NTBs Resolution Efforts: The Commerce & Industry Ministry is developing a portal to address non-tariff barriers (NTBs) and monitor resolution efforts, with a rollout expected in the next 2-3 months.
NTBs Impact: Indian exports susceptible to NTBs include items like chillies, tea, and basmati rice to the EU, shrimps to the US, and bovine meat to South Korea. NTBs encompass technical regulations and non-technical measures such as quotas and import licensing.
Conclusion
The decline in agriculture exports highlights the impact of global disruptions and regulatory changes on India's trade. Despite growth in non-regulated sectors, the significant drop in regulated exports, particularly non-basmati rice, underscores ongoing challenges. The government's proactive approach to resolving non-tariff barriers (NTBs) through a dedicated portal and task force is crucial. Addressing these barriers and stabilizing global trade conditions will be essential for reversing the current trend and boosting export performance.