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The value of Indian agricultural exports reached $53.1 billion in 2022-2023, a sixfold increase in less than two decades. Exports are important because they increase revenue, foreign exchange, and transactional options. However, the rapid increase in exports raises questions about the long-term viability of production, processing, and distribution networks.
India registered an agriculture growth rate of 3.5% in 2022-23.
West Bengal, Uttar Pradesh, Punjab, Gujarat, Haryana, Madhya Pradesh, Assam, Andhra Pradesh, Karnataka, and Chhattisgarh are India's largest crop-producing states.
India's tea production for 2022-23 was 1,374.9 million tonnes.
Uttar Pradesh is the largest producer of sugarcane in India, accounting for around 48% of total production. Maharashtra is 2nd-largest sugarcane producer, with 23% of total production, and Karnataka comes in third with 9%.
According to the World Trade Organization's Trade Statistical Review 2023, India accounted for 2.4% of global agricultural exports in 2022. India accounted for 1.9% of global agricultural imports in 2022.
India's major agricultural exports include rice, wheat, sugar, spices, and cotton.
Rice accounted for more than 20% of India's total agricultural exports in 2022–23.
India exported marine products of value $8.07 billion in 2022-23.
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As of 2024-25 (until June 2024), the largest importers of Indian agricultural products were the United States, China, the United Arab Emirates, and Saudi Arabia. During this time, the United States was the largest importer of Indian agricultural products, spending $1.26 billion and accounting for 10.55% of total exports. The United States and China were the main importers of Indian marine products. |
Agriculture Export Policy (AEP) 2018
The Indian government has implemented a comprehensive Agriculture Export Policy (AEP) to boost agricultural product exports.
It aims to diversify export baskets and destinations, increase high value-added agricultural exports, promote indigenous, organic, traditional, and non-traditional Agri product exports, provide an institutional mechanism for pursuing market access, and enable farmers to benefit from export opportunities in overseas markets.
Financial Assistance Scheme (FAS)
FAS is an export promotion scheme operated by the Agriculture and Processed Food Products Export Development Authority (APEDA). It aims to help businesses develop export infrastructure, quality, and market opportunities.
Financial assistance under the scheme will range between Rs. 5 lakh and Rs. 5 crore.
Agriculture and Processed Food Products Export Development Authority (APEDA)APEDA was formed in 1986 to develop India's agricultural exports. Its main functions include registering people as exporters, establishing standards and specifications for scheduled products, conducting inspections, collecting statistics, and providing information, training, and advisory services to exporters. It is responsible for the export and promotion of 14 agricultural and processed food product groups. |
India is the world's fourth-largest tea exporter and second-largest producer, accounting for 10% of global exports.
The total value of Indian tea exports from 2022 to 2023 was $793.78 million. Domestic consumption accounts for 80% of total production.
The top export destinations for Indian tea are the United Arab Emirates, Russia, Iran, the United States, and the United Kingdom.
Tea cultivation
Tea is a tropical and subtropical plant that grows in moderately hot and humid climates.
It requires 150-300 cm of annual rainfall, which should be evenly distributed throughout the year.
The ideal temperature for its growth is 20°-30°C, while temperatures above 35°C and below 10°C are harmful to the bush.
The ideal soil for tea cultivation is slightly acidic (no calcium) with a porous subsoil that allows water to percolate freely.
The major tea-producing states in India are Assam, West Bengal, Tamil Nadu, Kerala.
Challenges faced
About 70% of tea plantations are located on the edge of forests and serve as migratory routes for elephants, resulting in regular encounters with humans as well as property damage.
Synthetic pesticides account for up to 85% of all pesticide use in tea plantations. This dependency on pesticides increases the chemical residue in the final product. Researchers have already found an increase in the levels of DDT, Endosulfan 35 EC, Dicofol 18.5 EC, and Cypermethrin 10 EC in tea.
More than half of the tea plantation workers are women, and they often get inadequate compensation. The working conditions are also hazardous, and workers often have no protective equipment. Despite regulations under the Plantations Labour Act 1951 (amended in 2010 to improve worker safety), safety standards are rarely fully enforced.
India is the world's second-largest sugar producer, producing 34 million metric tonnes, or about a fifth of total global production.
The Directorate General of Commercial Intelligence and Statistics reported that the country exported sugar to 121 countries. Sugarcane cultivation supports the livelihoods of about 50 million Indian farmers. An additional half million people rely on sugar and related factories.
According to the NITI Aayog, the industry has an annual turnover of Rs 1 lakh crore.
Sugar Cultivation
Sugarcane is grown as a Kharif crop. It requires a hot, humid climate with an average temperature of 21°C to 27°C.
Rainfall between 75 and 150 cm is ideal for sugar cane cultivation.
Sugarcane grows best in deep, rich loamy soil. The soil should be high in nitrogen, calcium, and phosphorus, but it should not be too acidic or alkaline.
South India's tropical climate allows for higher sucrose content, leading to a higher yield per unit area than north India.
The sugar industry is broadly divided into two major production areas: Uttar Pradesh, Bihar, Haryana, and Punjab in the north, and Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh in the south.
Challenges faced
Despite the economic value of exports and the industry's significant rural employment, it has significant negative environmental consequences, mostly in terms of water resource management.
Sugarcane cultivation is highly water-intensive. On average, 1 kg of sugar requires 1,500–2,000 kg of water. Sugarcane and paddy account for around 25% of India's gross cropped area and consume 60% of the country's total irrigation water, reducing availability for other crops and also stressing groundwater resources.
The natural ecosystems, such as grasslands and savannahs have also been converted into sugarcane plantations, which resulted in biodiversity loss and has increased the pressure on water resources. This highlights the importance of sustainable water use and alternate cropping patterns.
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Millets are an excellent example of a sustainable option for increasing both domestic consumption and exports. They are resilient to harsh conditions and do not require additional inputs due to weather resource constraints. They maintain soil health and provide nutritional security. |
Agriculture accounts for 80% of surface water in India. Water-intensive crops such as paddy, cotton, and sugarcane add additional pressure on groundwater resources.
The Sustainable Agriculture Programme should be adopted to address water scarcity and depleted groundwater reserves by involving farmers and implementing sustainable agriculture practices to reduce and optimize the water footprint of water-intensive crops.
Need to implement sustainable agriculture and water management practices for crops that have a high environmental impact. Utilizing innovative technologies to reduce the water, land, and carbon footprint of agricultural systems.
The government should Promote environmentally friendly agricultural systems, such as organic and regenerative. There is a need to develop and implement sustainability standards for specific crops to improve farmers' market access.
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PRACTICE QUESTION Q.Critically Analyze the role of sustainable agricultural practices in promoting inclusive rural development. (250 words) |
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