During the April-February period of the 2023-24 fiscal year, India saw a notable decline of 8.8 percent in its agricultural exports, amounting to $43.7 billion. This drop was attributed to various factors including the Red Sea crisis, the Russia-Ukraine conflict, and domestic restrictions on key commodities like rice, wheat, sugar, and onions. In comparison, the commerce ministry's data revealed that exports had reached $47.9 billion during the same period in 2022-23.
Additionally, India's agricultural GDP experienced a significant slowdown, with growth slowing to 0.7 percent in 2023-24 from 4.7 percent in the previous fiscal year. The data further indicated a decline in exports of the 719 scheduled agricultural products in the APEDA basket, dropping by 6.85 percent to $22.4 billion during the 11 months of the last fiscal year, compared to $24 billion in April-February 2022-23.
Export bans and restrictions on commodities such as rice, wheat, sugar, and onions have significantly impacted agricultural exports, resulting in a loss estimated at $5-6 billion in the last fiscal year, according to an official statement. However, among the 24 principal commodities in the APEDA basket, 17 recorded positive growth during the period, including fresh fruit, buffalo meat, processed vegetables, basmati rice, and bananas.
Basmati rice exports notably increased from $4.2 billion in April-February 2022-23 to $5.2 billion in April-February 2023-24, marking a growth of 22 percent. The impact of the Israel-Iran conflict on exports remains uncertain, with officials closely monitoring the situation for any significant developments.
Furthermore, India witnessed growth in the export of alcoholic beverages during the last fiscal year, particularly with high-end Indian brands. Despite the global alcoholic beverages market reaching $113.66 billion in 2022, India's exports stood at $180 million, ranking the country 40th in global exports of alcoholic beverages.
