Sustaining long-term agricultural exports from India

Abstract

In this study, we analysed the trend, composition and dynamics of India’s comparative advantage in agricultural exports from 2001 to 2021 using data from the INTRACEN database for seven agricultural commodities, namely rice, crustaceans, bovine meat, cotton, pepper, cane sugar and tea. The contribution of agricultural exports to the agricultural gross value added (GVA) has increased over time. The country has the highest comparative advantage in rice, followed by pepper and tea, while crustaceans and bovine meat show a lower comparative advantage. The COVID-19 pandemic disrupted the supply chains, causing a decline in exports of bovine meat and tea. The study also probed the reasons behind export rejections in major importing markets. Pesticide residues, microbial infections and consignment management emerge as the major reasons for export rejection. Effective value-chain management is critical for the quality and safety compliances of the commodities.