India stands as a global agricultural powerhouse, ranking second in world agricultural production yet holding only 2.4% of global agricultural exports. With agricultural exports valued at USD 48.9 billion in FY 2023-24, down from USD 53.2 billion in FY 2022-23, India faces both opportunities and challenges in expanding its agricultural footprint in international markets. This article examines the current state of India's agricultural exports, analyses key performance indicators, and explores strategies for sustainable growth. India's agricultural exports have experienced fluctuations in recent years, reflecting both global market dynamics and domestic policy decisions. Agricultural exports touched USD 48.9 billion in 2023-24, registering a decline from USD 53.2 billion in 2022-23. This 8.2% decline was primarily attributed to export restrictions imposed on key commodities including rice, wheat, and sugar to ensure domestic food security.

Year-on-Year Performance Analysis: • FY 2023-24: USD 48.9 billion (8.2% decline from previous year). • FY 2022-23: USD 53.2 billion. • FY 2021-22: USD 50.24 billion (21.8% growth). • FY 2020-21: USD 41.25 billion. Key Performance Highlights for FY25 (April-December): Total Agricultural Exports: Rs. 3,18,509 Crore (USD 36.95 billion). Strong performance in specific commodities showing market recovery. Export Diversification: Continued focus on high-value products and new markets. India's agriculture sector primarily exports: Agricultural & allied products, Marine products (leading category), Plantation products (tea, coffee, spices), and Textile & allied products. The agricultural export sector has shown a 5-year average growth trend, with the recent decline attributed primarily to policy interventions aimed at ensuring domestic food security. However, the lifting of export restrictions on key commodities like rice has begun to show positive results in the current fiscal year. India's Agricultural Exports comprises 2.5% of global agricultural trade maintaining its position as 8th largest agricultural exporter. India ranks second in global agriculture production, but its share in global agricultural exports is only 2.4%, placing it eighth in the world (WTO's Trade Statistical Review, 2022). This disparity between production capacity and export performance reveals significant untapped potential. Rice contributes more than 20% of total agricultural exports. 

Top 5 commodities (Basmati rice, Non-basmati rice, Sugar, Spices, Oilseeds) account for 51.5% of total agricultural exports. Marine products represent the highest value export in the agricultural and allied sector.

Coffee exports showed robust 12.3% growth, Tea exports achieved 10-year high with 10% growth, Fruits & vegetables exports grew by 14%, Meat, dairy & poultry exports increased by 12.4%.

Rice, wheat, and sugar exports faced restrictions in 2023-24. These restrictions contributed to the overall 8.2% decline in agricultural exports Policy measures aimed at ensuring domestic food security affected export performance .

According to the Export Performance Report released by the Marine Products Exports Development Authority, in Financial Year 2023-24, an all-time high volume of 17,81,602 MT of marine products were exported from India. Valued at over Rs. 60,524 Crore, approximately USD 7,382 million, the export of marine products has greatly benefitted farmers and farmer collectives from the coastal states of Andhra Pradesh, Odisha, West Bengal, Gujarat, Maharashtra, Kerala and Tamil Nadu. Despite the total value decreasing by 5.39% (Rs. 63,969 Crore in 2022-23 against Rs. 60,524 in 2023-24) due to geopolitical challenges in the Red Sea and reduced consumer demand caused by inflation in major markets like the USA, EU and UK, exports increased by 2.67% in quantity.

This reflects the positive impact of various initiatives of the Government of India, including the Pradhan Mantri Matsya Sampada Yojana (PMMSY) and the branding, innovation, and infrastructural development efforts of MPEDA and the Department of Fisheries. India exported marine products to 132 countries, with FY 2023-24 seeing exports to six new markets – Suriname, Chad, the Central African Republic, Mayotte, Sierra Leone, and Guadeloupe. In Financial Year 2024-25, the marine products sector continued to show promising growth, with the Ministry of Commerce and Industry’s Department of Commerce reporting that exports increased by 3.40% from USD 0.49 Billion in February 2024 to USD 0.51 billion in February 2025. Total exports have been valued at USD 7.2 billion, reflecting a strong performance despite continuing geopolitical challenges in international trade.

Rice continues to dominate India's  agricultural export basket. India had the highest export volume of rice worldwide, at 16.5 million metric tons as of 2023/2024. Rice exports during the first eight months of FY25 (April to November 2024) saw a sharp spike of over 13% to Rs. 63,012 Crore (USD 7.31 billion) compared to Rs. 55,512 Crore (USD 6.44 billion) reported during the same period in FY24. New data released by the Government on 16th May 2025 shows that India achieved a record high of USD 12.5 billion in rice exports in FY 2024-25, a significant increase from the USD 10.4 billion recorded in FY 2023-24.

Rice is the largest exported agricultural product from India and accounts for more than 20% of total agriculture exports. In FY 23, rice exports from India were valued at USD 11.14 billion, as against USD 9.67 billion in FY22, registering a growth of 15.22%. Exports of spices increased slightly, valued at USD 4.45 billion in FY 2024-25, against the recorded value of USD 4.25 billion in the previous financial year. Coffee exports in FY 2024-25 stood at USD 1.81 billion, up from USD 1.29 billion in FY 2023-24. Coffee exports from India jumped by 12.3% to 1146.2 million tonnes in 2023. India's tea exports have also hit a 10-year high, reaching 255 million kilograms in 2024, despite facing challenges from global geopolitical tensions. The Tea Board of India's data shows a robust 10 percent increase from the previous year's 231.69 million kilograms. Recent data shows that tea exports grew from USD 0.83 billion in FY 2023-24 to USD 0.92 billion in FY 2024-25.

India is one of the largest exporters of sheep and goat meat globally. Sheep and goat meat exported from India amounted to over USD 69 million in fiscal year 2023. This was a significant increase from the previous fiscal year. The country has exported 9,592.31 MT of goat/sheep meat to markets globally, valued at Rs. 537.18 Crores during the year 2022-23. Major export destinations for sheep and goat meat in 2022-23 included United Arab Emirates, Qatar, Kuwait, Maldives and Oman (in descending order). The fastest growing export markets for sheep and goat meat between 2022 and 2023 were the United Arab Emirates (USD 8.29 million), Bahrain (USD 663,000), and Kuwait (USD 453,000).

Latin America, Africa, and Scandinavian countries represent high-growth potential destinations, with India actively pursuing market diversification strategies.

Frequent restrictions (such as bans on rice and sugar exports) have impacted India's credibility in global markets, leading to a decline in trustworthiness when it comes to agricultural exports. Imposing restrictions not only affects global food security, particularly for less affluent nations in the Global South, but also undermines India's reputation as a dependable food supplier. India's agriexport basket is dependent primarily on five commodities, making the sector vulnerable to fluctuations in global prices and demand.

The share of processed agricultural exports in India remains relatively low, constituting approximately 17% of total agricultural exports. This is significantly lower compared to leading economies such as the United States (roughly 25%) and China (roughly 50%).

The sector is hindered by inadequate cold chain infrastructure (CCI) and inefficient logistics. Additionally, there is little awareness of the need for farmgate packhouses (pre-cooling units with cold rooms) or other CCI components. According to APEDA, approximately 40% of the country's food undergoes spoilage, which significantly impacts farmers’ income.

Ensuring consistent quality and compliance with international sanitary and phytosanitary (SPS) standards is a significant challenge for Indian agricultural exports due to pests, diseases, and lack of awareness.

Small and marginal landholdings, coupled with a lack of access to credit, present persistent challenges in transitioning to commercial production. Small and marginal farmers with less than two hectares of land account for 86.2% of all farmers in India. Small land holdings and low mechanisation hinder economies of scale.

Government Initiatives and Policy Framework

The Government introduced a comprehensive Agriculture Export Policy in December 2018 with a vision to harness export potential of Indian agriculture, through suitable policy instruments, to make India a global power in agriculture and raise farmers’ income through the ‘Doubling Farmers’ Income’ set of interventions.

Key objectives includes achieving USD 100 billion in agricultural exports over the next decade and striving to double India's share in world agricultural exports by integrating with the global value chain as a matter of priority.

One of the most significant recent developments in India's agricultural export landscape is the formation of National Co-operative Exports Limited (NCEL) by the decision of the Union Government’s Cabinet and with the support of the Ministry of Cooperation. NCEL was registered under the Multi-State Cooperative Societies Act, 2002 on January 25, 2023.

NCEL is a multi-state cooperative society jointly promoted by some of the leading cooperative societies in the country, namely: Gujarat Cooperative Milk Marketing Federation (GCMMF) - Amul; Indian Farmers Fertiliser Cooperative Limited (IFFCO); Krishak Bharati Cooperative Limited (KRIBHCO); National Agricultural Cooperative Marketing Federation of India Limited (NAFED); and National Cooperative Development Corporation (NCDC), a statutory corporation under the Ministry of Cooperation.

The authorised share capital of NCEL is Rs 2,000 crore, with cooperatives at all levels, from primary to national, eligible to join as members. NCEL serves as an umbrella organisation for exports from the cooperative sector, promoting exports at all levels and across all sectors. This helps maximise the export potential of Indian cooperatives in overseas markets.

NCEL provides a complete ecosystem for the promotion of exports, mainly of agricultural commodities, for the benefit of farmers. It will promote exports through various activities including procurement, storage, processing, marketing, branding, labelling, packaging, certification, research & development, and trading.

NCEL assists cooperatives in value addition and improving product quality according to international standards to enable cooperative exports to compete in the international market. The organisation provides the following services - Assistance with export certification and logistics; Obtaining funds and providing technical guidance; Training and capacity building; International and national market research and building market intelligence systems; Export-related consultation services; Creating and maintaining a knowledge repository for cooperative exports and Branding, labelling, and packaging support Being an umbrella organisation for cooperative sector exports, NCEL assists farmers in obtaining higher prices for their products in overseas NCEL addresses several critical challenges in agricultural exports - Solving Export Market Problems: Tackles issues such as fierce competition, monopoly, malpractices, lack of infrastructure, and standardisation. Leveraging Cooperative Strength: Utilises the extensive cooperative network that serves 60% of India's population dependent on agriculture. Whole-of-Government Approach: Helps cooperatives reap benefits of various export-related schemes and policies of different ministries in a focused manner. Inclusive Growth Model: Works towards fulfilling the Government’s vision of "Sahkar se Samriddhi" (prosperity through cooperation) The National Co-operative Exports Limited represents a paradigm shift in India's approach to agricultural exports. By harnessing the collective strength of cooperatives, NCEL can play a pivotal role in achieving the USD 100 billion agricultural export target through scaling cooperative participation. With over 10,000 cooperatives onboarded as members and the potential for exponential growth, NCEL can aggregate production from millions of small farmers across the country.

By providing technical guidance and quality enhancement support, NCEL can ensure that cooperative products meet international standards consistently. Through collective branding and marketing efforts, NCEL can create strong brand identities for Indian agricultural products in global markets. The umbrella structure allows smaller cooperatives to access international markets with reduced individual risk.

A major boost for agricultural exports would come from newer ideas and innovations, both in terms of technology and business models. In this context, policies to support and enrich the startup ecosystem may prove to be extremely beneficial. Technology and innovation are radically transforming Indian agriculture, ushering in a new era of efficiency and sustainability. Digital platforms and agtech solutions empower farmers with real-time data, precision farming techniques, and automated irrigation systems. AI-driven tools enable predictive crop management, early detection of diseases, and optimized fertilizer use, thereby reducing waste and increasing yields. Innovations in mobile applications, sensor networks, and drone surveillance bridge information gaps while connecting rural farmers to markets and financial services. This technological revolution not only boosts productivity but also strengthens rural economies, positioning India as a future farming powerhouse in the global agricultural landscape. NCEL is striving to promote advanced agricultural technologies, precision farming, and efficient irrigation, while empowering agri-startups and innovative solutions to boost productivity and export efficiency.

Value addition and processing of agricultural produce play a pivotal role in expanding India's export potential by transforming raw materials into highquality, market-ready products. Enhanced processing techniques improve shelf life and increase nutritional value, thus appealing to global consumers. Converting perishable items into processed goods also minimizes post-harvest losses and strengthens food safety standards. Additionally, value addition facilitates product branding and differentiation, enabling access to premium markets abroad. By investing in modern processing infrastructure and adopting innovative technologies, India can significantly boost its agricultural exports, ensuring higher returns for farmers while reinforcing its esteemed reputation in the international trade arena.

To boost exports, the government has identified 20 agricultural products with high export potential in developed countries. These include items such as bananas, mangos, cashew nuts, buffalo meat and alcoholic beverages. India's share in the USD 400 billion global market of such products was only 2.23% in 2022, amounting to USD 9 billion. The aim is to capture 4 to 5% of the international market share in the next few years.

Policy Recommendations

Economists suggest more predictable and rules-based policies, like temporary tariffs, to manage exports without sudden shocks.The government should maintain buffer stocks of essential commodities to mitigate price volatility and ensure market stability. Focus on meeting international standards and developing quality assurance mechanisms to improve competitiveness in global markets. Expand NCEL's reach to include more cooperatives, enhance its technological capabilities for scaling operations.

India's agricultural export sector stands at a critical juncture. While challenges such as infrastructure deficits, fragmented landholdings, and policy inconsistencies persist, the sector's potential remains enormous. With strategic interventions focusing on technology adoption, value addition, infrastructure development, and policy stability, India can realise its ambition of achieving USD100 billion in agricultural exports.

The success of this endeavour will not only boost foreign exchange earnings and improve farmers' incomes but also position India as a reliable and competitive player in the global agricultural market. The journey ahead requires coordinated efforts from government, private sector, and farming communities to unlock the full potential of India's agricultural export sector.

Data sources: APEDA, Ministry of Commerce and Industry, Department of Agriculture & Farmers Welfare, Government of India, and various industry reports.