The financial year 2023-24, India experienced an 8.2% decline in its agricultural exports. This drop was primarily attributed to the imposition of export bans on various items, including grains, sugar, and onions.
Agricultural export figures for the year 2023-24 totaled $48.82 billion, marking a decrease from the record high of $53.15 billion recorded in the previous fiscal year 2022-23. In comparison, the export value in 2020-21 stood at $50.24 billion.
The impact of these export bans was particularly noticeable in key commodities like sugar and non-basmati rice. For example, sugar exports plummeted to $2.82 billion in 2023-24 from $5.77 billion in 2022-23, while non-basmati rice exports fell to $4.57 billion from $6.36 billion during the same period.
Additional contributing factors to the decline include a decrease in global agricultural commodity prices observed from 2013-14 to 2019-20, followed by a subsequent increase after the COVID-19 pandemic and the Russia-Ukraine conflict in 2022-23.
Analysis indicates that during the initial years of the government (2013-20), there was a decline in exports coupled with an increase in imports, primarily due to a decrease in global prices. However, the fiscal year 2022-23 saw record highs in both exports and imports, along with improvements in global prices. In the fiscal year 2023-24, the decline in exports can be predominantly attributed to the export bans imposed on sugar and non-basmati rice.
conclusion: export restrictions have had a significant impact on India's agricultural exports, underscoring the necessity for policy changes to maintain competitiveness in global markets.
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