India’s Agricultural Trade
India’s agricultural trade has witnessed developments in recent years. In the fiscal year 2024-25, agricultural exports rose by 6.4% to reach $51.9 billion. This increase contrasts sharply with the overall goods export growth, which remained nearly flat at 0.1%. Meanwhile, agricultural imports surged by 17.2%, denoting a growing dependency on foreign products.
Export Growth Trends
Agricultural exports have shown a recovery since 2019-20. The peak was in 2022-23, when exports reached $53.1 billion. However, the current figure of $51.9 billion indicates a slight decline from that peak. Key export commodities include marine products, rice, spices, and coffee. Marine products, despite a recent drop, remain export, primarily to the US and China.
Import Dynamics
India’s agricultural imports have increased , from $15.5 billion in 2013-14 to $38.5 billion in 2024-25. The main import items include vegetable oils and pulses, driven by low domestic production and yield issues. This trend reflects a growing reliance on international markets for essential food items.
Major Export Commodities
Rice has emerged as a standout export, with non-basmati and basmati varieties reaching record values. In 2024-25, exports totalled $12.5 billion. Other notable exports include spices, tobacco, and fruits, all of which have seen increased demand in global markets. Coffee exports benefited from global supply shortages, particularly due to adverse weather conditions in major producing countries.
Import Challenges
The surge in imports can be attributed to stagnant domestic production of key crops such as oilseeds and pulses. Farmers face challenges due to low yields and the absence of a robust government procurement system. These factors contribute to a rising import bill, especially for vegetable oils and pulses, which surpassed $5 billion for the first time.
Trade Agreements Impact
India is currently negotiating trade agreements with the US, EU, and UK. These agreements may lead to tariff reductions and increased market access for agricultural products. The outcomes of these negotiations could shape India’s agricultural trade landscape in the coming years.
Agricultural Trade Surplus
India’s agricultural trade surplus has halved from $27.7 billion in 2013-14 to $13.4 billion in 2024-25. This decline reflects the increasing import bill and the challenges faced by domestic producers. The balance between exports and imports remains critical for the sustainability of India’s agricultural sector.
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