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13 Jul

IN NEWS

India's Agricultural Exports Remain Resilient Despite US Trump Tariffs

Introduction

India's agricultural exports increased by 2.3% year-on-year to USD 53.1 billion in FY 2025-26, despite steep tariff hikes imposed by the United States under the Trump administration. While several traditional exports to the US witnessed declines, India's agricultural sector demonstrated remarkable resilience through market diversification, rising exports to Asia, Europe and West Asia, and strong global demand for select commodities such as marine products, buffalo meat and coffee. (The Indian Express)


ANALYSIS

India's Agricultural Export Performance

India exported agricultural products worth USD 53.1 billion during FY 2025-26, compared to USD 52 billion in FY 2024-25. Although slightly below the all-time high of USD 53.2 billion recorded in FY 2022-23, the sector outperformed India's overall merchandise exports, which grew by only 0.9% during the same period. This highlights the relatively stronger resilience of agriculture amidst global trade disruptions. (The Indian Express)


Impact of Trump Tariffs on Indian Exports

The US administration imposed multiple tariff revisions on Indian exports:

TimelineTariff Rate
Effective from 7 August25%
From 27 August50%
From 10 February18%
From 24 February10%

These tariff hikes adversely affected several Indian export sectors.Among agricultural commodities, exports to the US declined in:

  • Marine products
  • Spices
  • Basmati rice
  • Processed fruits & vegetables

Non-agricultural sectors such as pharmaceuticals, readymade garments, gold & jewellery and leather products also registered significant declines. (The Indian Express)


How India Offset the Tariff Shock

The major reason behind India's success was export market diversification rather than dependence on a single destination.Instead of relying heavily on the US market, Indian exporters expanded shipments to countries such as:

  • China
  • Vietnam
  • Japan
  • Belgium
  • Thailand
  • Canada
  • Spain
  • Italy
  • Russia
  • Malaysia
  • United Kingdom

This diversification helped compensate for declining exports to the United States, particularly in frozen shrimp and prawn exports. (The Indian Express)


Major Agricultural Export Winners

1. Marine Products

Marine exports reached an all-time high of over USD 8.4 billion, registering 13.9% growth.The increase was primarily driven by higher exports to China, Vietnam, Japan and European countries, offsetting losses in the US market. (The Indian Express)


2. Buffalo Meat

Exports increased by 25.6% to approximately USD 5.1 billion, surpassing the previous record achieved in FY 2014-15.Major importing countries included:

  • Vietnam
  • Egypt
  • Malaysia
  • UAE
  • Saudi Arabia
  • Uzbekistan
  • Indonesia
  • Philippines
  • Jordan

Export quantity also increased from 12.5 lakh tonnes to 14.2 lakh tonnes. (The Indian Express)


3. Coffee

India's coffee exports crossed USD 2 billion for the first time.The primary reasons were:

  • Historically low global coffee stocks
  • Weak production in Brazil and Vietnam
  • High international coffee prices

India mainly exports Robusta coffee beans and instant coffee blends to markets including Italy, Germany, Russia, UAE and Belgium. (The Indian Express)


4. Fresh Fruits & Vegetables

Exports of fresh fruits and vegetables also achieved record levels.Major export destinations included:

  • UAE
  • Iraq
  • Netherlands
  • Bangladesh
  • Malaysia

Key exported products comprised grapes, mangoes, pomegranates, bananas, onions, tomatoes, potatoes and green chillies. (The Indian Express)


Agricultural Commodities Showing Weak Performance

Despite overall resilience, exports of several important products remained below previous peak levels, including:

  • Rice (Basmati and Non-Basmati)
  • Spices
  • Tobacco
  • Processed fruits & vegetables

This indicates that export diversification has not been uniform across all agricultural commodities. (The Indian Express)


India's Agricultural Import Trends

Agricultural imports continue to rise, concentrated mainly in a few commodities.

CommodityKey Observation
Vegetable OilsRecord imports of 169.4 lakh tonnes
PulsesImports declined from previous year's peak but remain high due to domestic shortage
Fresh FruitsImports crossed USD 3.5 billion, largely from the US
Raw CottonIndia has become a net importer due to domestic production shortfalls

India currently produces only about:

  • 40% of domestic vegetable oil requirements.
  • 80% of pulse requirements.

The remaining demand is met through imports. (The Indian Express)


Why Has India Become a Net Importer of Raw Cotton?

India was once among the world's largest exporters of raw cotton.However, recent years have witnessed:

  • Declining domestic production.
  • Productivity stagnation.
  • Absence of new yield-enhancing technologies after Bt Cotton.

Consequently, cotton imports have exceeded exports during FY 2024-25 and FY 2025-26. (The Indian Express)


Agricultural Trade Balance

Although India remains a net exporter of agricultural products, the surplus has steadily declined.

YearAgricultural Trade Surplus
FY 2013-14USD 27.7 billion
FY 2025-26USD 12.7 billion

The narrowing surplus reflects:

  • Rising agricultural imports.
  • Greater dependence on imported vegetable oils and pulses.
  • Increasing imports of cotton and fresh fruits. (The Indian Express)

Significance for India

The performance demonstrates that export diversification is an effective strategy against trade protectionism. Reduced dependence on a single market enhances resilience against geopolitical shocks, tariff barriers and changing global demand. At the same time, rising imports of essential agricultural commodities highlight the need to improve domestic productivity, strengthen oilseed and pulse production, promote agricultural technology adoption, and expand value-added exports.


STATIC PART

Department of Commerce

Ministry: Ministry of Commerce & IndustryRole

  • Formulates India's foreign trade policy.
  • Promotes exports and facilitates imports.
  • Compiles and publishes India's export-import trade statistics.
  • Oversees export promotion councils and trade facilitation measures.

United States Department of Agriculture (USDA)

Established: 1862Headquarters: Washington D.C., United StatesPresent Secretary: Brooke RollinsFunctions

  • Formulates US agricultural policy.
  • Publishes global agricultural production and trade outlooks.
  • Releases estimates on global crop production, consumption and ending stocks.
  • Provides international agricultural market intelligence.

Important Report Mentioned

Global Coffee Stocks (Ending Stocks) Projection

  • Published by: United States Department of Agriculture (USDA)
  • Projection for 2025-26: 20.1 million bags
  • Indicates the fifth consecutive annual decline in global coffee stocks. (The Indian Express)

Updated – 14 May 2026 | 09:59 AM IST | News Source – The Indian Express

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