Exports of 7 farm commodities fall in May on weak global rates

By: | Published: July 11, 2016 7:47 PM

Exports of several agriculture products, including tea, coffee, rice and cashew declined in May due to fall in global commodity prices.

However, industry experts expressed hope that the global commodity prices would gradually firm up, which would help in pushing up agriculture exports. (Reuters)However, industry experts expressed hope that the global commodity prices would gradually firm up, which would help in pushing up agriculture exports. (Reuters)

Exports of several agriculture products, including tea, coffee, rice and cashew declined in May due to fall in global commodity prices.

Cereals, oil meals and dairy & poultry products too recorded negative growth during the month.

In all, seven out of 13 main agriculture products that are closely monitored by the Commerce Ministry, were in the negative zone.

However, industry experts expressed hope that the global commodity prices would gradually firm up, which would help in pushing up agriculture exports.

“Prices of agri-produce would start firming up. It would help in pushing up agri exports,” said Ajay Sahai, DG & CEO of Federation of Indian Export Organisations (FIEO).

During the month, exports of tea, coffee, rice and other cereals declined by 2 per cent, 15.68 per cent, 18 per cent and 53.75 per cent respectively, according to the official data.

Other products which reported negative growth include cashew (- 14 per cent), oil meals (- 69.74 per cent) and meat, dairy & poultry products (- 17 per cent).

Decline in these exports is a key factor for slow growth in India’s overall merchandise exports.

Agri-products account for over 10 per cent of the country’s total exports.

Exports fell for the 18th month in a row in May, though marginally by 0.79 per cent to USD 22.17 billion as several non-oil sectors such as engineering and gems and jewellery saw a rise in outward shipments.

Sectors which grew at a healthy rate in May include tobacco (31.29 per cent), spices (11.36 per cent), oil seeds (7.64 per cent), fruits and vegetables (1.53 per cent) and marine products (11.39 per cent).

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