How farm exports have grown despite US tariffs, Pg9

Key Highlights:

• India's farm exports grew by 2.3% to $53.1 billion in 2025-26, despite US tariffs.
• Overall merchandise exports increased by 0.9% to $441.7 billion, lower than the 2022-23 peak.
• Marine product exports grew by 13.9% to over $8.4 billion, offsetting US tariff impacts through diversification.
• Buffalo meat exports soared by 25.6% to $5.1 billion, driven by increased demand from countries like Vietnam and Egypt.
• Coffee exports crossed $2 billion for the first time, nearly tripling since 2020-21, due to high global prices.
• Vegetable oil imports reached a record 169.4 lt in 2025-26, while pulses imports decreased from the previous year.
• India's agri trade surplus has narrowed to $12.7 billion in 2025-26, due to rising imports and fluctuating exports.

Detailed Insights:

• Despite US tariffs affecting sectors like pharmaceuticals and marine products, India's agricultural exports showed resilience through market diversification.
• The US tariffs, initially at 25% and raised to 50%, were later reduced to 18% and 10%, impacting key Indian exports to the US.
• Marine product exporters compensated for reduced US demand by increasing shipments to countries like China, Vietnam, and Japan.
• Buffalo meat exports benefited from diversified markets, with significant increases in demand from Vietnam, Egypt, and the UAE.
• High global prices and low stocks drove coffee exports, with India primarily exporting robusta beans to countries like Italy and Germany.
• Vegetable oil and pulses imports reflect India's dependence, meeting only 40% and 80% of domestic demand, respectively.
• India has transitioned from a net exporter to an importer of raw cotton due to domestic production shortfalls and lack of new yield-enhancing technologies.
• While India remains a surplus trader in agricultural produce, the surplus has been narrowing due to rising imports and fluctuating export trends.

Key Concepts Involved:

• Tariffs: Taxes imposed on imported or exported goods.
• Diversification: Expanding into new markets or products to reduce risk.
• Trade Surplus: The amount by which a country's exports exceed its imports.