Month: December 2023

India dominates the global turmeric market, contributing to over 80% of the world’s production.

India is called the land of spices owing to its rich history, diverse geography, and extensive cultivation of a wide range of aromatic spices.Turmeric is one of them. It is a golden-hued spice derived from the Curcuma longa plant and has a special place in Indian culture and cuisine. The connection between India and turmeric is multifaceted. It is used in cooking, as a medicine, religious ceremonies, etc.

India is the largest producer, consumer and exporter of turmeric in the world. Turmeric exports from India contribute substantially to India’s economy, generating revenue and supporting the livelihoods of numerous farmers involved in its cultivation. 

In this blog, we will talk about turmeric production in India, turmeric exports from India, turmeric exporters in India and so on.

Turmeric Production in India and Current Market Trends

India is the largest producer of turmeric in the world. Various regions across India contribute to its cultivation due to the diverse climate and fertile soil, making it an ideal crop for many parts of the country. 

India cultivates over 30 diverse varieties of turmeric across more than 20 states nationwide. Maharashtra, Telangana, Karnataka, and Tamil Nadu stand are the major turmeric-producing states in the country.

As per the Commerce Ministry, during the year  2022-23, an area of around 3.24 lakh hectares was under turmeric cultivation in India. The total turmeric production in India reached 11.61 lakh tonnes, making up over 75% of the global turmeric output.

In terms of market trends, India’s dominance in the global turmeric market remains unchallenged. Its widespread popularity as a natural remedy and spice in diverse cuisines supports its stable market growth.

However, factors such as weather conditions, changing agricultural practices, and market fluctuations do impact production and pricing. During the monsoon climate variations season can affect turmeric yields. Also, changes in farming practices, technology integration, and government policies play a role in shaping production levels and market trends.

Turmeric Exports from India

India’s role in the global turmeric market is not only as a major producer but also as the largest exporter of the world. The country exports substantial quantities of turmeric to various nations to meet diverse consumer demands. 

Did you know that the most popular Indian export is Turmeric (Haldi)?

According to the commerce ministry, during 2022-23, 1.534 lakh tonnes of turmeric and turmeric products valued at 207.45 million USD was exported by more than 380 exporters. 

The primary export destinations for Indian Turmeric are Bangladesh, UAE, USA, and Malaysia. North America is the largest market for Haldi and Europe is the fastest growing market.

India’s status as the largest exporter of turmeric can be attributed to several key factors:

1. Abundant Production: India boasts extensive cultivation of turmeric across various regions due to favorable climatic conditions and fertile soil, resulting in substantial production levels.
2. High Quality: Indian turmeric is renowned for its quality and potency, meeting international standards. 
3. Cultural Significance: Turmeric holds immense cultural importance in India as it is used in traditional practices, cuisine, and medicinal systems like Ayurveda. This deep-rooted cultural connection has translated into expertise in cultivation, processing, and trading.
4. Global Demand:There is a huge global demand for turmeric because of its use for different purposes like medicines, cosmetics, etc. India effectively meets this demand due to its large-scale production and export capabilities.
5. Market Competitiveness: Indian exporters often offer competitive pricing in the international market, making their turmeric an attractive choice for buyers worldwide.

Turmeric exporters in India

EXPORA is a leading turmeric exporter from India. We guarantee a consistent supply of different turmeric varieties to cater to the diverse preferences of our customers worldwide. With our expertise and strong partnerships with reputable turmeric suppliers in India, we ensure reliable and top-notch turmeric exports from India.

EXPORA is an exporter of turmeric from Maharashtra, Salem and Nizamabad qualities with different types of polishes.

Get the best price and quality for turmeric from EXPORA for global markets.

Conclusion

Turmeric exports from India play a crucial role in shaping the worldwide spice trade. With India’s ability to grow turmeric in large quantities, a variety of turmeric types, and a strong infrastructure, we stand out in meeting local and global demand for this valuable spice.

Nevertheless, India also has the capacity to increase its international presence by creating awareness about turmeric value added products like turmeric oil, oleoresins,etc. among the turmeric manufacturers and exporters in India

FAQs

1. Which are the top turmeric exporting countries?

Ans. India, Netherlands, Vietnam, Fiji, Myanmar, Peru, Indonesia, Germany, United States and Spain are the top 10 turmeric exporting countries.

2. Which are the top turmeric importing countries?

Ans. United States, India, Bangladesh, Germany, Netherlands, United Kingdom, Malaysia, UAE, Japan, Canada are the top 10 importing countries.

3. Which turmeric products are exported from India?

Ans. Major turmeric products exported from India are Turmeric Powder (HSN code: 09103030), Turmeric Extract, Amla Powder, Shatavari Powder, Tulsi Powder.

4. How to export turmeric from India?

Ans. Exporting turmeric from India involves obtaining licenses, grading the product, and ensuring compliance with regulations. Packaging, arranging transportation to the port, and managing customs clearance are crucial steps. Market research helps find buyers, and negotiating contracts finalizes the deal. Monitoring the shipment, maintaining communication, and addressing concerns post-shipment ensures a successful export process. If don’t want to go through such a time-consuming process, you can contact us at contact@expora.in

India’s agriculture sector is more integrated with the world than ever, and there’s been a substantial increase in the volume of trade happening over the years. India achieved this by gradually removing obstacles to trade, making deals with multiple countries, and having policies at home that encourage farmers to produce agri-commodities for export. Also, incentives were provided to food export companies in India to increase the volume of exports.

As a result, India has witnessed a remarkable increase in agricultural product exports, progressing from $6.4 billion in 2001 to $37.3 billion in 2019, and ultimately reaching $53.2 billion in 2022-23.

However, During the period from 2013-14 to 2020-21, there has been no substantial increase in agricultural products exported from India. In fact, there has been a declining trend in India’s agricultural exports over these years.

Key data related to India’s Agriculture Export Performance in Last 10 Years

Between 2013-14 and 2015-16, India’s agricultural exports sharply fell from USD 43.25 billion to USD 32.81 billion, primarily due to the crash in global prices.

It stayed around $38 billion in 2017-18 and 2018-19, but then dropped to $35.16 billion in 2019-20.

During the pandemic year (2020-21), India’s agriculture exports have registered growth of 17.34% and have reached $41.25 billion. This happened due to the growing demand of staples like non-basmati rice, wheat and cereals all over the world.

In FY22, agriculture products export from India reached an all-time high at $50.21 billion. Wheat recorded the highest growth, jumping more than four times from $568 million in 2020-21 to almost $2119 million in 2021-22, a growth of over 273%. Also, India now dominates almost half of the world’s rice market.

India’s agriculture exports have reached approximately $53 billion in FY23

 

 

The impact of global prices on India’s agriculture exports

Agricultural trade in India, particularly exports, appears to be closely tied to global price trends.

The UN Food and Agriculture Organization’s Food Price Index (FPI) reveals a fluctuating pattern, rising from 96.5 points in 2019-20 to 139.5 points in 2022-23. In the ongoing fiscal year (April to October 2023), the FPI maintains an average of 123.2 points.

The trajectory of India’s agricultural exports seems to align with the movements of the FPI. During the decline of the FPI from 119.1 to 96.5 points between 2013-14 and 2019-20, India’s  agri exports mirrored this trend, decreasing from $43.3 billion to $35.6 billion. In contrast, with the FPI reaching unprecedented levels in 2022-23, our exports experienced a corresponding increase.

As global prices are now witnessing a decline, both the value of exports and imports of agricultural commodities to and from India are anticipated to decrease in 2023-24. This is one of the major reasons as to why India’s agricultural exports have fallen 11.6% year-on-year in April-September 2023.

List of agricultural products exported from India

Below is the list of top 10 agricultural products exported from india

1. Marine products
2. Non-basmati rice
3. Sugar 
4. Spices
5. Basmati Rice
6. Buffalo meat
7. Raw Cotton
8. Wheat
9. Castor oil
10. Other cereals

Food export companies in India

EXPORA exports rice, pulses, spices and processed foods from India. We ensure a seamless export process, providing you with a diverse range of quality agricultural products.
Finding dependable suppliers who produce high-quality agricultural products for import-export purposes is a major difficulty in the agro and food industry globally. Due to reasons such as multiple supplier challenges, physical distance, lack of knowledge,differences in business practices, and language hurdles, locating such suppliers can be challenging.

EXPORA is a premier agri exporter from India. Our focus is always in providing customers with good quality products which are procured directly from the origin thus ensuring best prices.

By working closely with a network of trusted agricultural products suppliers and manufacturers from all over India, EXPORA guarantees a consistent supply of different agricultural commodities to cater to the diverse preferences of its customers worldwide

Conclusion

Indian farmers till now have not only met but exceeded the expectations of a diverse global consumer base. India’s agricultural trade story is one of resilience, adaptation to global dynamics, and the continuous pursuit of providing quality products to the world market.

Pulses, often dubbed the “poor man’s meat” for their rich protein content, hold a prominent place in India’s agriculture.

India stands as the leading global producer, importer, and consumer of pulses, making up around 25% of the world’s production, 15% of the international trade, and 27% of the global consumption of these nutritional crops.

In FY23, India exported 775,024.48 MT of pulses to the world for the worth of Rs. 5,397.86 Crores. The top export destinations include Bangladesh, China, U.A.E, U.S.A and Nepal.

Pulses Cultivation in India

 

Pulses are edible dry seeds of plants belonging to the Leguminosae family. With their significant protein and mineral content, pulses hold particular significance for individuals adhering to vegetarian diets.

In recent times, India’s pulse cultivation has witnessed substantial growth, with the country accounting for almost a quarter of the world’s pulse output.

According to data released by the Ministry of Agriculture and Farmers Welfare, the annual production of pulses has been less than 20 million tonnes during 2010-16. However, since 2016-17, India’s total production of pulses has been regularly crossing the 20 million tonnes mark. The increase in pulse production is closely linked to the exponential rise in Minimum Support Price (MSP) and the procurement of pulses.

The surge in pulse production within the nation is also evident in trade.From 2014 to 2020, there has been a substantial decrease in import bill of pulses.

 

Variety of Pulses Exported and Imported

 

Exported Pulses from India	Imported Pulses to India
1. Lentils	1. Yellow Peas
2. Chickpeas (Gram)	2. Green Gram
3. Pigeon Peas (Toor Dal)	3. Kidney Beans
4. Black Gram	4. Lentils
5. Red Lentils	5. Pigeon Peas

Major Pulses Exporting Countries

 

While India plays a significant role in the global pulses export market, it’s worth acknowledging that several other nations are also noteworthy contributors. Among the top global pulses exporting countries, excluding India, are the following:

 

Canada

Canada, renowned for its high-quality lentils and chickpeas, is a major player in the global pulses market. In recent years, Canada has consistently exported a substantial quantity of pulses. Its primary export destinations include the United States, India, and Turkey.

 

Australia

Australia is a key exporter of various pulses, such as chickpeas and lentils. Australian pulses are well-regarded for their quality and find their way to markets in India, Pakistan, and Bangladesh, among others.

 

Myanmar

Myanmar has been gaining prominence as a pulses exporter, particularly in the lentil and chickpea categories. The country’s pulse exports are directed mainly to countries like India, Pakistan, and the United Arab Emirates.

 

United States

The United States is a notable exporter of pulses, especially dry beans and peas. Its pulse exports are primarily destined for markets in Mexico, the Caribbean, and the Middle East.

These countries, apart from India, constitute a significant portion of the global pulses export market, contributing to the worldwide availability of pulses for consumers and businesses alike.

 

Self-reliance in Pulses: Pulses Imports by India

 

India heavily relied on imports till 2016-17. Since then, there has been a significant decline in import of pulses. The imports fell down from $4.2 billion in 2016-17 to $1.94 billion in 2022-23.

The reduction in pulses imports by India have come essentially on the back of higher domestic production. 

The imports of two items have shown remarkable decline:  Yellow/white peas (matar) and chickpea (chana).

At their peak, annual imports of yellow/white peas exceeded 3 million tonnes and chickpeas reached 1 million tonnes. The reason is simple: yellow/white peas from Canada, Russia, Ukraine, and Lithuania were substituting for chickpeas when their prices surged due to lower Indian production. 

However, after 2016-17, domestic chickpea output significantly increased, mainly due to government incentives encouraging farmers to expand their cultivation during the winter-spring season.

This boost was supported by a 60% import duty on chickpeas imposed in March 2018 and robust government procurement at minimum support prices (MSP). MSP for chickpeas rose from Rs 3,100 to Rs 5,335 per quintal between 2013-14 and 2022-23, leading to a near-halt in imports.

However, the success in production of Chana has not been replicated for other pulses like Arhar or Pigeon pea. 

Pulses exports from India have witnessed significant exponential growth over the past three years. In FY22, they amounted to $359 million, and in FY23, they surged to $662 million, marking an impressive 84% increase.

Rising production is indeed boosting exports, but challenges such as inadequate storage facilities, limited shelf life of pulses, variability in seed size, strong domestic demand, and differences in pulse maturity levels are factors that impact Indian exports.

 

Pulses Exports from India

 

India is the 3rd largest exporter of pulses in the world. In FY23, it exported most of its pulses to Bangladesh, China, U.A.E, U.S.A and Nepal.

The dynamics of these exports are influenced by various factors, notably India’s domestic pulse production, which can fluctuate due to weather conditions and crop diseases.

Government policies, such as export bans or quotas, also play a key role as they aim to stabilize local prices and ensure an adequate supply for Indian consumers.

Pulses exports from India have witnessed significant exponential growth over the past three years. In FY22, they amounted to $359 million, and in FY23, they surged to $662 million, marking an impressive 84% increase.

Rising production is indeed boosting exports, but challenges such as inadequate storage facilities, limited shelf life of pulses, variability in seed size, strong domestic demand, and differences in pulse maturity levels are factors that impact Indian exports.

 

Find pulses exporters from India

 

Finding dependable pulse export companies in India who produce high-quality pulses for import-export purposes can be a significant challenge in the global pulse industry. Various factors, such as a lack of knowledge, multiple supplier challenges, language barriers, physical distance, and differences in business practices, make locating reliable pulse suppliers in India a complex endeavor.

EXPORA is a leading pulses exporter and importer. We import varieties of pulses from Africa and supply them worldwide. EXPORA exports pulses from India worldwide as well. We understand the importance of working closely with a network of trusted pulse suppliers and manufacturers from all over India and the world. As a leading pulses export company in India, we guarantee a consistent supply of different pulse varieties to cater to the diverse preferences of our customers worldwide. With our expertise and strong partnerships with reputable pulses manufacturers and suppliers in India, we ensure reliable and top-notch pulse exports from the country.

Exporting goods and services is a vital component of any country’s economic growth. In India, the government has been actively promoting exports through various initiatives, but one crucial aspect that often goes overlooked is export finance. Export finance is the lifeblood of international trade, providing businesses with the necessary capital to expand their markets and contribute to the country’s economic prosperity.

In this blog, we will explore the various aspects of export finance, the different types of export finance, the significance of export credit finance, current status of export financing in India, etc.

What is Export Finance?

Export finance is a means to guarantee that exporters possess sufficient funds available to meet their working capital requirements and other financial obligations in international transactions. When delivering goods to foreign countries, export finance becomes essential to ensure that the manufacturing and shipping of products can be carried out within a predetermined budget.

Types of Export Finance

When it comes to export financing, there are several key types of export finance that businesses can leverage:

1. Pre-shipment Finance

Pre-shipment finance is the financial assistance provided to exporters to meet their working capital requirements before goods are dispatched. This type of export finance aids in procuring raw materials, processing, and packing of goods for export.

2. Post-shipment Finance

Post-shipment finance is extended to exporters after the shipment of goods. It serves as a bridge between the actual shipment of goods and the realization of export proceeds. Exporters can use this type of export finance to meet their post-shipment obligations, such as paying suppliers and other expenses.

3. Export Credit Finance

Export credit finance is a fundamental component of export finance, providing protection to exporters against non-payment by overseas buyers. In India, the Export Credit Guarantee Corporation (ECGC) offers export credit insurance to safeguard exporters’ interests.

4. Export Factoring

Export factoring is another essential aspect of export finance. It involves financial institutions purchasing a company’s accounts receivable and managing the credit and collection processes.

5. Export Bill Discounting

Export bill discounting allows exporters to obtain funds by selling their export bills to banks or financial institutions at a discount. This approach offers much-needed liquidity to exporters.

6. Foreign Currency Loans

To mitigate exchange rate risks, many exporters opt for foreign currency loans as part of their export financing strategy. These loans are designed to fund export-related activities and protect against currency fluctuations.

Who Can Offer Export Finance in India?

When it comes to export financing, there are several key types of export finance that businesses can leverage:

 1. Export-Import Bank of India (EXIM Bank)EXIM Bank is a specialized financial institution that focuses on supporting Indian exports. It provides export credit, lines of credit for overseas projects, and trade-related services to Indian exporters.

2. Various financial institutions, such as nationalized banks, private sector banks, foreign banks, regional rural banks, and specific cooperative banks, offer export financing services.

10 steps to get export financing

 IDENTIFY FINANCIAL NEEDS

   – Assess financial requirements for international transactions.

SELECT EXPORT FINANCE TYPE

   Choose from various export finance options:

     – Pre-shipment Finance

     – Post-shipment Finance

     – Export Credit Finance

     – Export Factoring

     – Export Bill Discounting

     – Foreign Currency Loans

APPLICATION AND DOCUMENTATION

   – Apply to a financial institution.

   – Provide necessary documentation, e.g., invoices, purchase orders, export contracts.

APPROVAL AND DISBURSEMENT

   – The lender approves the application.

   – Disbursement of funds to the exporter.

UTILIZE FUNDS

   – Use funds for various purposes, such as procuring raw materials, processing goods, and preparing for shipment.

EXPORT TRANSACTION EXECUTION

   – Proceed with the production and shipping of goods or services to international markets.

RISK MITIGATION

   – Consider export credit insurance to protect against non-payment by overseas buyers.

REPAYMENT

   – Repay the export finance, including interest, after the export proceeds are received.

COMPLIANCE AND DOCUMENTATION

   – Ensure compliance with international trade regulations.

   – Provide necessary documentation for customs clearance and compliance.

REALIZATION OF EXPORT PROCEEDS

    – Receive payment from overseas buyers after the successful export transaction.

    Continue to use export finance to support ongoing international trade operations.

Indian Government Initiatives to Promote Export Finance

The Indian government has taken several initiatives to promote and support export finance in India as part of its efforts to boost the country’s exports and economic growth. These initiatives aim to create a conducive environment for businesses engaged in international trade. Here are some key Indian government initiatives to promote export finance:

Merchandise Exports from India Scheme (MEIS):

MEIS is an export promotion scheme that provides financial incentives to exporters of specified goods to offset infrastructural inefficiencies and associated costs. Under MEIS, exporters receive duty credit scrips that can be used to pay various duties and taxes, including customs duty.

Services Exports from India Scheme (SEIS):

SEIS is designed to encourage the export of services from India. It provides exporters in the services sector with duty credit scrips based on their foreign exchange earnings. These scrips can be used for various purposes, including payment of service tax, customs duties, and more.

Export Credit Guarantee Corporation (ECGC):

ECGC plays a crucial role in supporting export credit finance. It provides export credit insurance to protect exporters against the risk of non-payment by overseas buyers. This insurance coverage helps exporters gain confidence in expanding their international business.

Interest Equalization Scheme (IES):

The IES is aimed at providing interest rate equalization on pre and post-shipment export credit to make export credit more affordable for Indian exporters. It covers various export sectors and helps reduce the cost of credit for exporters.

National Export Insurance Account (NEIA):

NEIA is a scheme introduced to provide insurance coverage to Indian project exporters, enabling them to bid for and execute large projects abroad. It offers insurance to protect project exporters against non-commercial risks when executing projects overseas.

Export Promotion Councils (EPCs):

The government collaborates with Export Promotion Councils to support specific sectors. These councils work on enhancing export opportunities and provide market insights, training, and support to exporters.

Trade Facilitation Measures:

The Indian government has been working on simplifying customs procedures, reducing trade barriers, and enhancing trade facilitation measures to streamline the export process and reduce costs for exporters.

Export Development Fund (EDF):

EDF aims to support Indian exporters in their marketing efforts by providing financial assistance for export promotion activities, including participation in international trade fairs and exhibitions.

Export Finance Institutions:

Institutions like Export-Import Bank of India (EXIM Bank) play a significant role in providing export finance support, including export credit, export finance, and trade-related services.

Digital Initiatives:

The government is promoting the use of digital platforms and technology to simplify and expedite export documentation and processes, making it easier for businesses to access export finance and engage in international trade.

These initiatives collectively contribute to creating a more favorable environment for Indian exporters, helping them access export finance, expand their global presence, and contribute to the growth of the Indian economy through increased exports.

Conclusion

Export finance stands as a critical pillar in India’s journey towards achieving its ambitious goal of reaching $2 trillion in total goods and services exports by 2030.

As the nation strives to expand its presence on the international stage, the role of robust export finance practices becomes increasingly pivotal in realizing the vision of becoming a global export powerhouse.

Export finance is the lifeblood of international trade, providing businesses with the necessary capital to expand their markets and contribute to the country’s economic prosperity.

When delivering goods to foreign countries, export finance becomes essential to ensure that the manufacturing and shipping of products can be carried out within a predetermined budget.