ITC Group's earning from foreign exchange in FY21 up 29% at Rs 5,934 cr

Total foreign exchange earning of the ITC Group from exports in FY'21 rose 29.08 per cent to Rs 5,934 crore, the company's latest annual report said.

While, the foreign exchange earned by ITC Ltd was up 31.2 per cent to Rs 4,600 crore, mainly on account of exports of agri-commodities, it said.

"During the financial year 2020-21, your company and its subsidiaries earned Rs 5,934 crore in foreign exchange," the company said in their report.

In FY'20, the direct foreign exchange earned by ITC was Rs 3,506 crore and the total earning including its subsidiaries was Rs 4,597 crore.

While ITC's expenditure in foreign currency amounted to Rs 1,664 crore for the year ended March 31, 2021.

This comprises the purchase of raw materials, spares and other expenses of Rs 1,366 crore and the import of capital goods of Rs 298 crore.

"Your company continues to view foreign exchange earnings as a priority," the annual report said.

Foreign exchange earnings of the ITC Group over the last ten years aggregated nearly USD 7.3 billion, of which agri exports constituted 56 per cent.

"Earnings from agri exports, which effectively link small farmers with international markets, are an indicator of your company's contribution to the rural economy," it added.

The company senses a great potential in the export of agriculture products.

"However, India's agri-exports aggregating approximately USD 42 billion represent a global market share of only about 2.5 per cent," it added.

Expert studies indicate the potential to double India's agri-exports by strengthening the competitiveness of agri-value chains in areas that are aligned to global demand and where the country has inherent advantages.

"This calls for a transformational shift of the agri ecosystem from the conventional production-centric supply chains to demand-responsive value chains anchored by market players," it said.