{"id":295215,"date":"2024-05-10T19:23:33","date_gmt":"2024-05-10T13:53:33","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=295215"},"modified":"2024-05-10T19:23:33","modified_gmt":"2024-05-10T13:53:33","slug":"how-indias-agricultural-exports-fell","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-indias-agricultural-exports-fell\/","title":{"rendered":"How India’s agricultural exports fell"},"content":{"rendered":"

Source<\/strong>: The post how India’s agricultural exports fell has been created, based on the article \u201cWhy<\/strong> agriculture<\/strong> may<\/strong> need<\/strong> a<\/strong> new<\/strong> export<\/strong>–<\/strong>import<\/strong> policy<\/strong>\u201d published in \u201cIndian<\/strong> express<\/strong>\u201d on 10th May 2024.<\/p>\n

UPSC<\/strong> Syllabus<\/strong> Topic<\/strong>:<\/strong> GS Paper 3<\/strong>-Agriculture \u2013 Marketing of agricultural produce.<\/p>\n

Context<\/strong>: This article discusses how India’s agricultural exports fell by 8.2% in the fiscal year ending March 31, 2024, mainly due to government restrictions on exporting key items like sugar, non-basmati rice, wheat, and onions to protect domestic supply and control inflation.<\/p>\n

For details information on India\u2019s Agricultural Export Sector<\/strong> read this article here<\/a><\/p>\n

Why<\/strong> did<\/strong> agricultural<\/strong> exports<\/strong> fall<\/strong>?<\/strong><\/h2>\n

Reasons for the Decline in Agricultural Exports:<\/p>\n

Bans on Key Commodities:<\/strong><\/p>\n

Government bans on sugar exports starting October 2023 reduced their value from $5.77 billion to $2.82 billion.<\/p>\n

Non-basmati rice exports dropped from $6.36 billion to $4.57 billion due to restrictions imposed in July 2023.<\/p>\n

Wheat exports were banned in May 2022, causing a sharp drop from $2.12 billion to $56.74 million.<\/p>\n

Onion exports fell to 17.08 lakh tonnes worth $467.83 million following export restrictions.<\/p>\n

Global Price Shifts:<\/strong><\/p>\n

A global crash in agri-commodity prices between 2013-14 and 2019-20 made India’s exports less competitive.<\/p>\n

The FAO food price index dropped from 119.1 to 96.5 points, impacting export revenues.<\/p>\n

Why<\/strong> did<\/strong> imports<\/strong> change<\/strong>?<\/strong><\/h2>\n

Imports changed in 2023-24 primarily due to shifts in edible oil prices and pulses demand.<\/p>\n

Global edible oil prices dropped after the Russia-Ukraine war, leading to a fall in India’s vegetable oil import bill to below $15 billion from over $20 billion the previous year.<\/p>\n

Conversely, pulses imports nearly doubled to $3.75 billion, driven by high domestic demand.<\/p>\n

The change in import trends was thus shaped by declining international oil prices and rising domestic demand for essential agricultural products like pulses.<\/p>\n

What<\/strong> should<\/strong> be<\/strong> done<\/strong>?<\/strong><\/h2>\n

Policy Stability:<\/strong> Farmers and traders require predictable policies. Sudden bans on key exports like wheat hurt market development and need careful consideration.<\/p>\n

Temporary Tariffs:<\/strong> Introducing temporary tariffs instead of outright bans would better balance consumer and producer interests.<\/p>\n

Support Crop Diversification:<\/strong> Encourage farmers to grow less water-intensive crops like pulses and oilseeds by maintaining reasonable tariffs. Current zero\/low tariffs on imports of these crops counter efforts to diversify away from rice, wheat, and sugarcane.<\/p>\n

Balanced Approach:<\/strong> Develop a policy that prioritizes both short- and long-term goals, supporting the farm sector\u2019s growth while safeguarding consumer interests.<\/p>\n

Question for practice:<\/strong><\/p>\n

Examine the factors contributing to the decline in India’s agricultural exports and the shifts in its import trends.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post how India’s agricultural exports fell has been created, based on the article \u201cWhy agriculture may need a new export–import policy\u201d published in \u201cIndian express\u201d on 10th May 2024. UPSC Syllabus Topic: GS Paper 3-Agriculture \u2013 Marketing of agricultural produce. Context: This article discusses how India’s agricultural exports fell by 8.2% in the… Continue reading How India’s agricultural exports fell<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[218,216,10500],"class_list":["post-295215","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-agriculture","tag-gs-paper-3","tag-indian-express","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=295215"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/295215\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=295215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=295215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=295215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}