Exports of 6 out of 10 key agricultural products shrink in October

In October this year, agricultural products such as rice and cereals witnessed a huge decline, of 40.68% and 39.27% respectively Deepak Kumar |The Dollar Business Bureau

The government had, last month, announced a 3% interest subsidy scheme applicable on all exports of Micro, Small and Medium Enterprises (MSME) and 416 tariff lines

Exports of six out of ten agricultural products tumbled by a significant margin in October this year, while overall exports contracted by 17.53% to $21.35 billion. Exports of oil meals recorded the maximum decline as it fell by over 65% to $28.34 million from last year’s $81.06 million. Other agricultural products such as rice and cereals, too, witnessed a huge decline, falling by 40.68% and 39.27% respectively. During the month, outbound shipments of other agricultural products, including cashew, oilseeds and spices, also shrank considerably. Tea, coffee, tobacco and fruits & vegetables were the only product categories that registered positive exports over the corresponding month of 2014. “Recently, India’s agriculture segment has been facing plenty of challenges. Insufficient rainfall during the monsoon season has added to the industry’s existing woes. Besides, our products are facing stiff competition from other Asian economies including Indonesia, Thailand and Vietnam,” Federation of Indian Export Organisations (FIEO) President S C Ralhan told The Dollar Business. Ralhan, however, stressed that a weak global demand has also been one of the major contributors to the decline. “As the global demand picks up, our exporters will have reasons to cheer up. Although we don’t see that happening very soon,” Ralhan said. The government had, last month, announced a 3% interest subsidy scheme -applicable on all exports of Micro, Small and Medium Enterprises (MSME) and 416 tariff lines but not to merchant exporters. The move was aimed at helping domestic exporters get loans at affordable rates with rebate in interest rate for five years so that the exporters can plan their exports strategies and potential overseas markets. In addition, the government had also revised the MEIS by providing more incentives to exporters. As part of the MEIS, exporters will get duty credit scrip at 2%, 3% and 5% of their total export turnover depending upon the products, and the country they ship their products to. The government has been focusing on ways to revive India’s agriculture sector, which has the potential to become one of the prime contributors to India’s GDPBesides these two initiatives taken last month, the government has also decided to discuss issues related to agriculture and subsidies during the upcoming WTO’s 10^th ministerial meeting to be held in Nairobi, Kenya, from December 15 to 18.

December 08, 2015 | 11:50pm IST

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The Dollar Business Bureau - Dec 08, 2015 06:29 IST

Exports of 6 out of 10 key agricultural products shrink in October

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