India’s agriculture trade surplus

Farm exports have posted above-average growth, with basmati rice, spices, coffee, and tobacco exports expected to reach new highs in 2024-25.

• However, imports, particularly pulses and edible oils, have surged, narrowing India’s agriculture trade surplus
• • About Trade Surplus: It occurs when the value of exports exceeds the value of imports.

  o India is traditionally a net exporter of agricultural commodities, meaning its outward shipments have been consistently higher than imports.

  • About India’s Agriculture Trade Surplus: India’s agriculture exports increased by 6.5% (April-Dec 2024). However, agricultural imports surged by 18.7% during the same period.
  • Drivers of Exports: Marine products remain India’s top export (2023-24).

  o Sugar exports halved due to government restrictions.

  o Rice exports continue to grow, with non-basmati exports stabilizing and basmati rice set to reach a new record.

  o Spices, coffee, and tobacco exports are benefiting from supply shortages in Brazil, Vietnam, and Zimbabwe.