Exports of 6 key agri products record negative growth in FY15

Exports of six key agricultural products, including tea, spices and tobacco, have registered negative growth in 2014-15, mainly due to decline in prices in global commodity markets.
Contraction in the exports of these commodities was one of the reasons the for decline in the country's total exports in 2014-15.
Besides, cereals, fruits and vegetables and oil meals recorded negative growth in exports during the last fiscal.
In all, 6 out of the 13 main agricultural products that are closely monitored by the Commerce Ministry, were in negative zone in 2014-15.
"Prices of agri-produce in the global market is generally depressed due to over-supply. But, on the other hand, prices here are much above the global prices, making domestic market a better option than exports," said Ajay Sahai, DG & CEO of Federation of Indian Export Organisations.

"These twin factors are primarily responsible for decline in exports of many agri-commodities," he added.

During 2014-15, exports of tea, spices and tobacco declined by about 16 per cent, one per cent and 5.2 per cent, respectively, according to the Commerce Ministry data.
Other products which have reported negative growth include cereals (27.33 per cent), oil meals (52.73 per cent), fruits and vegetables (8.85 per cent).
Decline in these exports is a key factor for slow growth in India's overall merchandise exports.
India's exports dipped deeper into the negative zone, recording a decline of 21 per cent in March, the biggest fall in last six years, pulling down total shipments for 2014-15 to USD 310.5 billion, missing the USD 340 billion target.

Agri-products account for over 10 per cent of the country's total exports.
According to estimates, outbound shipments of agri-produce in 2010-11 amounted to USD 17.35 billion; USD 27.43 billion in 2011-12; USD 31.86 billion in 2012-13 and about USD 45 billion in 2013-14.
In order to boost agri-exports, the Commerce Ministry is asking exporters to explore new markets and ship value-added products.
Other agriculture products such as coffee, rice and cashew too registered a marginal rate of growth.