NEW DELHI, SEPT 20:
India’s current account deficit may have surged by nearly two-and-a-half times from $38.18 billion to $88.16 billion between 2009-10 and 2012-13. But the same period has seen the country’s agricultural trade surplus – the difference between its exports and imports of farm commodities – expand three-folds from $8 billion to $25 billion on rising exports of commodities such as rice, wheat, cotton and spices among others.
The rupee’s depreciation of about 13 per cent in the current financial
year so far may help further expand the agri-trade surplus, say experts.
An analysis of the export figures reveal that the agri-trade surplus, which stood at $8 billion in 2009-10 has shot up to $25.45 billion in 2012-13 as shipments surged after exports of non-basmati rice, wheat and sugar were thrown open in the past couple of years.
Though India has been a net agri-exporter in the past two decades, the trade surplus has widened mainly over the last few years.
Total agricultural exports stood at $40.64 billion in 2012-13, a growth of 8.4 per cent over $37.47 billion in 2011-12.
Imports of agricultural products were $14.21 billion in 2012-13, a growth of 18 per cent over 2011-12 as Indians consumed more edible oils and pulses.
“This widening agricultural trade trade surplus reflects the increasing competitiveness of India’s exports in the world market,” said Tejinder Narang, a grains trade analyst.
And this momentum in agricultural exports could be sustained provided the Government does not tinker with the export policy, although the volatile rupee is posing a temporary concern for the exporters, Narang said.
Rice exports have more than doubled in the last two years after the Government permitted shipments of non-basmati rice.
In fact, India has emerged as the largest rice exporter, displacing Thailand, and the value of the total rice shipments stood at a record $6.21 billion in 2012-13.
Wheat shipments have surged to close to $2 billion in value terms for 2012-13 after the Government allowed shipments from the Central pool stocks.
Surge in output rice and wheat in the recent years has helped boost the shipments to overseas markets.
Exports of cotton, meat and meat preparations and oilmeals are the other major farm products that have witnessed significant growth in recent years.
Last year, India had also emerged as the largest exporter of buffalo meat worth $3 billion, overtaking Brazil, Australia and the US. Similarly, the import of edible oils has more than doubled in the past four years to over $11.23 billion in 2012-13 on rising consumption.
The import bill of pulses rose to a high of $2.34 billion as domestic production continues to fall short of the rising demand.
In a recent discussion paper, Commission for Agricultural Costs and Prices Chairman Ashok Gulati had made a pitch for a stable, long-term consistent and predictable agri-trade policy to regulate exports and imports taking recourse to tariff measures and not quantitative restrictions.
He had said a stable and liberal trade policy with moderate duties of 5-10 per cent will go a long way in promoting the country’s agricultural growth.
