India has always been a strong competitor in the agricultural field. And recent studies have clearly shown a significant surge in India’s agro export industry. Quality produce and diverse agricultural produce are the reasons for this uprising demand. Owing to the recognition of Indian agricultural heritage, Export Companies in India are capitalizing on the opportunity. In this blog, we shall explore the scope of agro based export companies in India, highlighting the latest statistics in the export sector showing the demand for agricultural products from India in the global market.
-
The ever rising Agro Export Industry
The agro export industry in India has been expanding steadily in recent years, reflecting the country’s immense potential as a major player in global trade. The Agricultural and Processed Food Products Export Development Authority (APPEDA) have recently published the statistics of the growth of Indian agro products. It is reported that Indian exports rose from 0.6 USD billion in 1987-88 to 24.77 USD billion in 2021-22. They further stated that by 2023 the values are expected to reach approximately 30 USD billion. The remarkable growth is obtained through various factors like improving farming techniques, better infrastructure of processing units, stringent quality testing and government initiatives to promote agriculture and its exports.
-
Major Agricultural Export Products:
India is blessed with fertile grounds and unique climatic conditions which supports the growth of a plethora of crops including cereals, fruits, vegetables, spices, etc. Let’s try to understand the most important export commodities and their relevance in the export sector.
a.Rice: Is it no brainer that India is the largest exporter of rice globally. With wide varieties of rice and culinary differences, rice is grown abundantly throughout the country. Reports from 2021 show that India’s rice exports reached a height of 21.5MT which is more than the combined shipments of Pakistan, Thailand, Vietnam and the US. Further predictions expects the global market for rice to reach USD 356 billion by 2030.
b.Marine products: Surrounded by major coastline and abundant aquatic resources, the marine exports are a strong competitor in the export field. Marine export records clearly show that in the year 2021-2022, India has exported marine products of quantity 1.36 million MT. The value of exports reached close to USD 7.76 billion in the last year. Future predictions are that the marine exports are likely to grow by nearly 9 percent which is approximately USD 8.47 billion in the upcoming year. If you’re interested in starting an export company in India, marine products seem like a promising commodity.
c.Spices: India has a long standing history in terms of spice export, from the time
Portuguese landed in India till date, India is considered the treasure trove of spices in the world. Cross exposure of global culture and cuisines have opened new doors for the spice export companies in India. The aromatic aura of spices are the highlight of any Indian cuisine, which all Indians are proud of. If you want to go by numbers to be sure before starting a Spice export company in India. Here are the reports. Latest export researches have shown the spice export from the year 2022 up until February 2023 was worth USD 3.33 billion. In February a considerable increase of 44.12% was noted.
d.Fresh Fruits and Vegetables: With a diverse range of fruits and vegetables, India is emerging as a key supplier in the global market. The growth rate of fruit and vegetable export showed an increase of 12 per cent with a net value of USD 1.720 billion in the year 2021-2022. The rates are exponentially growing
-
Rising Demand in Global Markets:
Due to a number of factors, Indian agricultural export enterprises are seeing an increase in demand for their goods on international markets:
a.Stringent quality and safety requirements are followed by Indian agricultural products, ensuring consumer satisfaction and trust in global markets.
b. Organic and Sustainable Produce: India’s agro export enterprises are well-positioned to meet the growing demand for organic and sustainable products on a worldwide scale. Indian agricultural products are in high demand because of organic farming methods and certifications.
c. Wide Product Range: India’s varied agro-climatic conditions make it possible to produce a variety of agricultural products all year long. This adaptability provides a steady supply of diverse goods to purchasers worldwide.
d.Competitive Pricing: When compared to similar items from other nations, agricultural products from India frequently provide competitive prices. This element of affordability increases the attraction of Indian agricultural exports to consumers, boosting demand in international markets.
Agro export businesses in India have a broad and potential market. Indian agro exporters enjoy a huge competitive edge in the global market thanks to their thriving agricultural industry, varied product offering, and rising worldwide demand. The figures illustrate India’s agricultural export industry’s growing trend and its potential to become a dominant force in the world agricultural commerce. To know more on starting an export company, read our beginner’s guide on setting up an export-import company in India.
