India for the first time in the history has reached USD 417.8 billion merchandise exports in 2021-22 owing to a slew of export measures and a big push by Prime Minister Narendra Modi.
India has achieved the highest monthly value of merchandise export in March 2022 amounting USD 40.38 billion, an increase of 14.53% over USD 35.26 billion in March 2021 and an increase of 87.89% over USD 21.49 billion in March 2020. India has earlier crossed $400 billion merchandise exports in the current financial year (2021-22), nine days ahead of schedule. This is the first time ever in the history when India has managed to break free of the band of $300 billion (+/- 10%) which used to be India’s export figure in the past.
Agriculture exports touch a historic high of USD 50 billion. Agriculture products export has played a major role in India’s highest ever merchandise export. Exports of agricultural products (including marine and plantation products) for the year 2021-22 have crossed USD 50 billion, the highest level ever achieved for agriculture exports. The Government of India’s consistent and concerted endeavours to usher reforms for boosting agricultural exports have been highly fruitful.
In spite of the unprecedented global pandemic, India has been able to step in to meet the increased global demand, emerging as a significant global supplier of food and other essential agricultural products. Notwithstanding logistical challenges posed by COVID-19 pandemic, India’s exports of agricultural products have grown by 19.92% during 2021-22 to touch $50.21 billion (Rs. 376575 Crore). Looking at five-yearly growth, it is observed that the export of agriculture and allied products have increased from a total of Rs. 8,96,708.84 crore during 2009-14 to Rs. 11,93,463 crores during 2014-19. Agricultural exports have already reached Rs. 9,31,781 crore mark during 2019-22.
Highest ever exports have been achieved for staples like rice (USD 9.65 billion), wheat (USD 2.19 billion), sugar (USD (4.6 billion) and other cereals (USD 1.08 billion). Wheat has recorded an unprecedented growth of more than 273%, jumping nearly four-fold from $568 million in 2020-21 to touch close to $2119 million in 2021-22.
Export of marine products, at USD 7.71 billion, is also the highest ever. Spices exports have touched USD 4 billion for the second year in a row. Despite facing tremendous supply side issues, coffee exports have crossed USD 1 billion for the first time.
With a view to facilitate export of surplus sugar thereby improving liquidity of sugar mills and enabling them to clear cane price dues of farmers, Government has been extending assistance to sugar mills. Further, to facilitate export of surplus sugar from the country, custom duty on export of sugar has been withdrawn by the Central Government with effect from March 20, 2018.
As a consequence of measures initiated by the government, Sugar exports for the year 2021-22 have touched a new record Rs 34503 crore with nearly 75 LMT sugar being exported during the year. It may be pointed out that sugar exports were just 6.2 LMT in the year 2017-18 which have now jumped to 75 LMT which is a whopping increase of nearly 12 times.
In every sugar season (October-September), production of sugar in India is around 320- 330 Lakh Metric Tonne (LMT) as against the domestic consumption of 260 LMT which results in huge carry over stock of sugar with mills. Due to excess availability of sugar in the country, the ex-mill prices of sugar remain subdued resulting in cash loss to sugar mills. This excess stock of 60 LMT also leads to blockage of funds and affects the liquidity of sugar mills resulting in accumulation of cane price arrears.
