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India’s agricultural exports dipped slightly in the first half of FY25, reaching $12.13 billion, down by 0.5% from last year’s $12.19 billion. The decline, primarily driven by reduced non-basmati rice shipments due to export restrictions, impacted overall cereal exports, which dropped by 8.35% to $5.22 billion. Despite this, basmati rice exports rose by 10.8%, boosted by the removal of the minimum export price. Livestock, dairy, and processed foods saw notable growth, offsetting declines in non-basmati rice and fresh produce. Export recovery is expected following the recent easing of restrictions.

Key Highlights

* Agri exports reached $12.13 billion in H1FY25, down 0.5% from last year.

* Non-basmati rice exports dropped 16.84% to $2.25 billion due to restrictions.

* Basmati rice exports increased 10.8%, aided by policy adjustments.

* Livestock and dairy exports grew, with dairy exports up by 33.6%.

* Processed food exports rose by 6.9%, while fresh produce saw a slight dip.

India's agricultural exports experienced a slight decline of 0.5% in the first half of the 2024-25 financial year, amounting to $12.13 billion compared to $12.19 billion during the same period last year. According to the Agricultural and Processed Foods Export Development Authority (APEDA), the primary reason for this dip is the reduction in non-basmati rice exports. This sector saw a significant drop of 16.84% to $2.25 billion, largely due to government-imposed export restrictions. These limitations led to an almost 47% reduction in non-basmati rice volumes, decreasing from 68.81 lakh tonnes to 46.52 lakh tonnes.

Basmati rice, however, showed strong growth. Exports of this aromatic variety rose by 10.8% to $2.87 billion, supported by an 18% increase in volume to 27.20 lakh tonnes. The recent removal of the minimum export price towards the end of the quarter is expected to further aid basmati shipments. The livestock sector also contributed positively, with a 7% growth in exports to $2.23 billion, driven by buffalo meat and dairy products. Buffalo meat exports grew by 4%, and dairy exports soared 33.6% due to higher demand and volume.

Other processed foods, including fruits, vegetables, pulses, and groundnuts, experienced a rise, registering a 6.9% growth to $2.34 billion. However, fresh fruits and vegetables, as well as cashew kernel exports, experienced a slight decrease in value, reflecting some challenges in volume. The easing of export restrictions on non-basmati rice is likely to support a potential recovery in the coming months.

Finally

India’s agriculture exports faced a minor decline in H1FY25, impacted by cereal export restrictions. With recent policy adjustments, the export outlook appears positive for the upcoming quarters.

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