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A contraction in guar gum and wheat has slowed down the growth rate of farm exports to over 15 per cent in 2013-14 from 24 per cent in the previous year. Lower than expected growth in export of spices also contributed.
A senior official from the trade division of the agriculture department said overall exports of agricultural commodities, including plantation crops, horticulture products and poultry products, rose by 15.70 per cent in 2013-14 as against 24.10 per cent in the previous year.
The data furnished by department of agriculture is different from that provided by the commerce ministry because it includes a wider array of commodities and encompasses all items directly produced in the country. In 2013-14, India exported farm goods worth Rs 2,68,477 crore as against Rs 2,32,041 crore in 2012-13. In 2011-12, India had exported farm products worth Rs 1,86,970 crore.
Most exporters and experts had anticipated that the surge of 2012-13 might not sustain in 2013-14 mainly because of a slump in the demand for guar gum, one of the main items of India's overall exports over the past few years.
Guar gum exports in 2013-14 stood at Rs 11,734 crore, down from Rs 21,287 crore in 2012-13. "The drop in value of exports is mainly due to the fall in prices of Indian guar gum meal in the international market due to availability of cheap alternatives," PK Hissaria, president, Indian Guar Gum Manufacturers Association, told Business Standard.
He said in 2013-14, Indian guar gum fetched around Rs 2,800-3,200 per tonne in the international market, a far cry from the highs of Rs 5,000-7,000 per tonne in 2012-13.
"In the coming year, prices will depend on the monsoon. If rains are not adequate, then prices might touch Rs 4,000-4,500 per tonne, otherwise they will continue to remain at current levels," Hissaria said.
Spice exports in 2013-14 were estimated to be at around Rs 15,981 crore, just four per cent more than the previous year after a 16 per cent growth seen in 2012-13.
Gokul Patnaik, chairman of Global Agrisystems Ltd, said wheat exports in value terms had fallen in 2013-14 from 2012-13 as the international price of the commodity was lower than the local price. "With relentless increase in the MSP (minimum support price), India is gradually becoming less competitive in the international wheat market," Patnaik said.
Wheat exports stood at Rs 9,257 crore in 2013-14 against Rs 10,529 crore in 2012-13. The quantity exported was also less at 5.5 million tonnes as against 6.5 million tonnes last year. "The growth momentum in India's agricultural exports will be maintained, but it will largely come from processed food items and not from cereals," Patnaik said.
