As per recent report it has been revealed that after a steep 20% decline last year, India’s farm and processed foods exports appear to look up. The report also indicates that export growth has been near flat in the first quarter of this year and according to analysts, a revival is under way in the current quarter as narrated by Mr Sandip Das in New Delhi. Further, in this matter according to latest data from the Agricultural and Processed Food Products and Export Development Authority (Apeda), exports in Q1 of FY17 stood at R26,140 crore, a trifle lower than Q1 last year. A steep 8.5% fall was witnessed in exports of Basmati rice, the single largest export item from the farm basket. However, the exports of fresh fruit, vegetables and guar gum also plunged steeply by 9.1% and 37%, respectively while Non-Basmati rice shipment saw an increase of 7% to R 4,255 crore.
Furthermore, it has been described that exports of guar gum, mostly to US-based oil exploration companies, started falling from last fiscal. However, other major export items like non-Basmati rice (7.4%) and fresh fruit and vegetables (9.1%) have risen. The data in this aspect, it also indicate that India’s farm and processed foods exports had fallen to R1.05 lakh crore in FY16 against R1.31 lakh crore reported in FY15. As per the statement issued recently by the Commerce Minister Nirmala Sitharaman in Parliament that the primary reasons for the decline in agricultural exports include low commodity prices in the international market, shrinking global demand and high domestic prices, as compared with the international prices. In addition the problem was compounded by unfavorable currency rate movements compared with competing countries too.