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Exports of several agriculture products including rice, spices and tobacco have registered negative growth in August mainly due to decline in prices in the global commodity market.
Tea, coffee, cereals, cashew and oil meals too recorded negative growth during the month.
In all, 8 out of 13 main agriculture products that are closely monitored by the Commerce Ministry, were in the negative zone.
"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 the month, exports of rice, spices and tobacco declined by 3.15% to $600 million, 2.18% to $227 million and 14.7% to $73 million respectively, according to the data of the Commerce Ministry.
Other products which have reported negative growth include tea (6.72%), coffee (10.5%), cereals (50.6%), cashew (1.82%) and oil meals (64.3%).
Decline in these exports is a key factor for slow growth in India's overall merchandise exports. Growth rate of India's exports slipped to 5-month low of 2.35% in August at $26.95 billion, pushing up the trade deficit to $10.83 billion.
Agri-products account for over 10% of the country's total exports.
As per estimates, outbound shipments of agri-produce in 2010-11 amounted $17.35 billion; $27.43 billion in 2011-12; $31.86 billion in 2012-13 and about $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.
Sectors which grew at a healthy rate in August include oil seeds (37.2%), fruits and vegetables (3.46%), processed items (6.71%), marine products (35.5%) and meat, dairy and poultry items (37.2%).
