An Overview of Trade Patterns of Major Agricultural Commodities in India

Abstract

Subsistence agriculture is central to the goal of Atmanirbhar Bharat. This is why agricultural exports are extremely important, apart from earning valuable foreign exchange for the country, exports support exporters to increase returns from an inclusive international marketplace, which in turn has increased their income. India is among the top ten in the world in the rankings, and exports of most agricultural products (except related products) are free without restrictions. Seed exports are limited, and mustard oil is allowed to be exported only in commercial containers with a maximum weight of 5 kg and a minimum export price (MEP) of $900/tonne. This study shows the trade performance and instability of India's agricultural exports over the study period (2000-2022, to April-June), with recent years agreeing with the COVID-19 pandemic. The study was based on secondary data and data collected from FAO, DGCIS, APEDA, and Agricultural Outlook 2021. During the study period (2000-2022), total agricultural exports and imports increased at a CAGR of 11.71 per cent and 13 per cent, respectively. The study also found that the balance of trade remains positive for the entire agricultural trade for all the years under analysis. The research also covers the main agricultural products, which account for the largest share of all imported and exported agricultural products from 2009-2022. The study finds that India's agricultural exports have increased, but on the other hand, the share of agricultural exports in the country's total exports has also decreased. These results include important policy recommendations that should focus on diversifying agricultural exports and focusing on more land, along with horticulture, better housing and education for people.