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India's agriculture exports are showing strong growth, increasing by 30 per cent year-on-year on a 3-month moving average (3mma) basis in volume terms, according to a report by SBI Mutual Funds.
The report data tracks the yearly growth rate in agricultural exports since April 2019. Over the past few months, the export volume has picked up pace sharply. In February 2025, the volume growth stood at 15 per cent, and in January 2025, it was even higher at 39 per cent. This marks a notable improvement compared to most of the period between mid-2022 and early 2024, when the growth was mostly in the negative or low single digits. Earlier, during the peak of the COVID-19 pandemic, especially around mid-2020 to early 2021, agriculture exports has seen a significant spike. For instance, in December 2020, the year-on-year growth rate in volume terms rose above 100 per cent, reflecting a strong demand for Indian agricultural goods during the global crisis. However, this growth rate gradually declined through 2021 and became inconsistent in 2022 and 2023 may be because of the high base. From December 2023 onwards, there has been a consistent upward trend, with the graph moving back into the positive territory. The most recent figures suggest that the sector is recovering well and gaining momentum. A 30 per cent growth on a 3mma basis indicates that the trend is not just a one-time jump but reflects sustained improvement in export performance. The report also noted that this surge in export activity comes at a time when domestic food grain production is also touching new highs. The Second Advance Estimate for the 2024-25 rabi season has pegged food grain output at a record 164.5 million tonnes, reflecting a 6 per cent increase over the 155 million tonnes produced in 2023-24. The growth is largely driven by sharp gains in rice and coarse cereals output. The strong rabi output and export growth provide a dual boost to India's agriculture economy. Higher production ensures food security and price stability, while the export momentum enhances farmer incomes and strengthens the country's trade position. Overall, the recent trend paints a positive picture for the agriculture export sector. (ANI)
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