India's food export volumes have shrunk in the current fiscal with other countries eating into its business share by offering lower prices for their agricultural and food products. European Union's ban on Indian mangoes, though lifted now, and other agri produce also contributed to the slide.
A recent report of the Agricultural and Processed Food Products Export Development Authority (APEDA) has showed that exports of some major commodities in agricultural and food products from India dipped in 2014-15 as compared to last year.
The highest drop in export volumes has been recorded for wheat (36%), pulses (37%) and fruits and seeds (33%) in the April to December period last year as compared to the same period in 2013. Exports of fresh vegetables fell by 3%, fruits by 7% and basmati rice by 6%, the report stated.
Officials in the agricultural and processed food authority said that the demand for Indian produce came down this year in particular, because other exporting countries were selling their produce at a much lower price than India.
Apart from basmati rice and wheat, other cereals registered an export drop of about 10%. Exports of non-basmati rice from India, however, increased by 12% last year in the April-December period as compared to the same period in 2013.
A senior official from the agricultural and processed food authority said that general demand for Indian produce has come down internationally due to competition from other countries. "Devalued currency in Russia, Latin America, Commonwealth of Independent States (CIS) among others had these countries exporting the same produce at a lower price than India," the official said.
Other factors too led to the drop. For instance, India's rice is exported to Iran, but this time Iran had old stock and better domestic production of rice, which led to a dip in rice exports from India to the country.
India's fruits and vegetables are exported to all the major countries, mainly to the Middle East, Far East and SAARC countries.
Officials in the state agriculture department, however, said that the dip in exports was also due to a ban by EU on mangoes, eggplant, the taro plant, bitter gourd and snake gourd and on chillies by UAE in 2014.
"Also, this year, India did not have a good supply season. Every item is exported in a particular supply period. If before India's supply season, other supplying countries are able to sell their produce in a big way and at lower prices, then the importing countries do not exhibit much demand for Indian produce at competitive prices. At this juncture, selling the produce in the local or domestic market is more viable for the exporters," the official added.
Source:timesofindia.indiatimes.com
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