Exports of key agriculture products in negative zone in July

Exports of as many as eight key agriculture products including tea, tobacco and cashew have registered negative growth in July mainly due to decline in prices in the global commodity market.

Other cereals, oil meals, meat, dairy and poultry products and fruits and vegetables 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.

"In the global market, prices of agri-produce are generally weak due to over supply," said Ajay Sahai, DG and CEO of Federation of Indian Export Organisations.

Exports of tea, tobacco and cashew declined by 9.72% to $407 million, 0.36% to $416 million and 18.21% to $382 million respectively, according to the Commerce Ministry data for July.
 

Other products which have reported negative growth include other cereals (14.3%), oil meals (22.68%), meat, dairy and poultry products (4.28%).

Decline in these exports is a key factor for slow growth in India's overall merchandise exports in July. Growth rate of India's exports dipped by 6.84% in the last month to $21.68 billion.

Agri-products account for over 10% of the country's total exports.

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 pace last month include coffee (3.77%), rice (6.27%), spices (12.18%), and oil seeds (21.79%).