About the news

• India’s agricultural exports fell by 8.2% in the fiscal year ended March 31, 2024, largely due to curbs on exports of commodities such as sugar, non-basmati rice, wheat, and onions.
• Restrictions on sugar exports, imposed since October 2023, and bans on non-basmati rice and onion exports have significantly affected overall agricultural exports.
• While exports of commodities like marine products, castor oil, and other cereals have seen growth, major export items such as sugar and non-basmati rice have faced significant declines.
• Overall agricultural imports witnessed a 7.9% dip in 2023-24, primarily due to reduced imports of edible oils, despite doubling of pulse imports to $3.75 billion.
• Therefore, the agricultural sector requires a more stable and predictable export-import policy to ensure the interests of both producers and consumers are balanced.

Recommendations

• Economists suggest the introduction of temporary tariffs instead of outright bans or quantitative restrictions to provide more predictability in the policy framework.
• Moreover, the government needs to align import policies with objectives to promote crop diversification and reduce dependence on imported commodities like pulses and edible oils.