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In FY21, India’s organic farm exports surge 51%

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Overseas demand for India’s organic farm commodities increased throughout the pandemic year, and exports of these goods increased 51 percent year on year in FY21, overcoming Covid-induced supply chain delays.

Outbound shipments of organic goods totaled $1,040 million last fiscal year, up from $689 million the previous year, contributing to an increase in overall agricultural exports, according to Commerce Secretary Anup Wadhawan.

Farm exports increased by more than 17% last fiscal year to $41.25 billion, while overall goods shipments decreased by roughly 7% to about $291 billion. Even in volume terms, organic product exports increased by up to 39% last fiscal year to 8,88,179 tonnes, up from 638,998 tonnes in FY20, indicating strong demand growth.

Oil cake and meals, oil seeds, cereals, millets, spices and condiments, tea, medicinal plant products, dried fruits, sugar, pulses, and coffee are among the important organic items that were transported overseas.

The items were shipped to 58 countries, primarily the United States, the European Union, Canada, the United Kingdom, Australia, Switzerland, Israel, and South Korea.

Organic products are now exported from India only if they are produced, processed, packaged, and labelled in accordance with the National Programme for Organic Production, which is overseen by the state-run APEDA.

Despite the logistical and operational obstacles caused by the pandemic, the country’s total agriculture exports increased significantly, as demand for basics increased. Agriculture and allied product exports (including marine and plantation goods) increased to $41.25 billion in FY21 from $35.16 billion the previous year, according to Wadhawan. Such exports had been flat for two years – $38.43 billion in FY18 and $38.74 billion in FY19  before falling in FY20.

Bumper harvests of some products, particularly grains, continuous efforts by exporters in difficult times, appealing pricing overseas, and government pushes through different measures such as a farm export policy, cluster formation, and simpler compliance enhanced exports.

The United States remained the largest market for Indian agriculture goods, followed by China, Bangladesh, the United Arab Emirates, and Vietnam.

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