India has huge potential for agricultural exports but the sector has often suffered from severe losses due to poor farming practices, inadequate infrastructure, and a constantly changing global perception of its produce quality. The problem in 2023 has brought all such problems of mismanagement and variable quality, thus increasing India’s problems with regard to agricultural exports.
A major chunk of what is produced on India’s farm floor does not reach international grade standards. Farming in numerous places has remained behind archaic technologies, resulting in lower yields and lower grades. Some of these range from the overuse of pesticides, absence of proper grading, and careless disposal post-harvest handling-these are some of the barriers to the export scope of these products. For example, India loses about 10-25% of perishable foods annually, amounting to approximately ₹1.52 lakh crore in annual losses.
Its export policies were inconsistent and badly affected the country’s standing in global markets. The case in question is when the government imposed a ban on exporting non-basmati rice in 2023, citing fears of reduced domestic supply. The export ban came under criticism from world leaders, with countries like the United States and other WTO members calling India out on creating unnecessary trade barriers. These bans affect not just the food security of international markets but also damage the reputation of India as a viable exporter.
Even with a record rice output of 134 million tones in 2023-24, the Indian export ban is likely to send rice shipments plummeting, which will affect the earnings. Again, India is over-reliant on low-value primary exports rather than processed products. For instance, India can be one of the largest producer countries of staples like rice and wheat, but export earnings are low in comparison with the processed products because of food processing infrastructure.
India needs to employ modern farming practices, promote digital agriculture, and enhance post-harvest infrastructure. Some measures include the integration of 1,361 mandis into the e-NAM platform and the Agriculture Accelerator Fund, which moves toward greater transparency and efficiency. In addition, promoting high-quality production methods and reducing pesticide overuse would help regain confidence in Indian agricultural exports.
Through strategic investments, improved regulation, and an emphasis on sustainability, India has the potential to transform its agricultural export landscape and reclaim its status as a global agricultural powerhouse.
