India's Agricultural Exports Surge: A Dual Boost to the Economy

India's agricultural exports are experiencing a robust upswing, with a 30% year-on-year increase on a three-month moving average (3mma) basis in volume terms, as per a report from SBI Mutual Funds. The report documents the yearly growth trend in agricultural exports from April 2019, showing a significant recent acceleration in export volumes.

In February 2025, growth reached 15%, with January 2025 seeing even higher expansion at 39%. This upswing represents a substantial improvement over much of the period from mid-2022 to early 2024, which saw largely negative or minimal growth. During the height of the COVID-19 pandemic, particularly from mid-2020 to early 2021, agricultural exports spiked dramatically, with December 2020 seeing over a 100% year-on-year growth as global demand for Indian agricultural products surged.

While growth waned through 2021 and became erratic in 2022 and 2023, potentially due to a high base effect, a positive trend has resumed from December 2023 onward. The latest data points to a resilient recovery in the sector. A sustained 30% growth on a 3mma basis underscores this as more than a temporary surge, reflecting ongoing export strength amid growing domestic food grain production.

The Second Advance Estimate for the 2024-25 rabi season forecasts a record food grain output of 164.5 million tonnes, a 6% rise from the 155 million tonnes achieved in 2023-24. This surge is largely attributable to significant increases in rice and coarse cereals production. The combination of robust rabi yields and export expansion offers a dual advantage to India's agricultural economy, promoting food security, price stability, and stronger farmer incomes while enhancing the nation's trade standing.

The recent figures present a promising outlook for the agricultural export sector, signaling recovery and renewed momentum. (ANI)

(With inputs from agencies.)