Month: March 2024

Makhana, known as fox nuts or lotus seeds, has emerged as a nutritional powerhouse and a significant export commodity from India. Its journey from a traditional snack to a global phenomenon showcases both its nutritional richness and economic potential. India accounts for more than 90% of global Makhana exports.

In this blog we will talk about Makhana production in India, largest producer of Makhana in the world, Makhana exports from India and more…

Makhana Production In India

While Makhana is cultivated in various regions worldwide, India is the largest producer, accounting for approximately 70-80% of the global yield. Bihar contributes to over 80% of Makhana production in India. Additionally, countries such as Japan, Korea, China, Bangladesh, and Russia also cultivate Makhana in its wild form.

Makhana production is a cumbersome process. Farmers carefully prepare the land before sowing Makhana seeds harvested from lotus plants directly into the muddy substrate. Throughout the growth cycle, they employ management practices such as weeding and ensuring optimal conditions for flowering and pollination, often facilitated by insects like bees. Harvesting occurs when the seed pods mature, with seeds processed to reveal the edible kernel within, which is then roasted and stored for freshness. 

Makhana Exports from India

Makhana exports from India have experienced significant growth in recent years, driven by increasing global demand for this nutritious and versatile snack.

India, being the largest producer, accounts for a substantial portion of the global Makhana supply. The export market for Makhana extends to diverse regions across the world, including Europe, North America, Asia, and the Middle East.

The rise in health-conscious consumers seeking organic and gluten-free alternatives has further boosted the demand for Makhana internationally. As a result, Makhana exporters in India are capitalizing on this trend by leveraging the country’s expertise in Makhana cultivation and processing to meet the growing demand in global markets. 

Additionally, government initiatives and export subsidies have provided further impetus to Makhana exports from India, contributing to the economic growth of the agricultural sector in India.

HSN Codes of top 3 Product Categories of Makhana Exports from India are:

1. HSN Code 19041090 : 19041090
2. HSN Code 21069099 : 21069099
3. HSN Code 08134090 : 08134090

Top 10 Makhana Exporting Countries

Here are top 10 Makhana exporting countries:

1. India
2. United States
3. Canada
4. Australia
5. United Arab Emirates
6. United Kingdom
7. Singapore
8. Netherlands
9. Pakistan
10. HongKong

Top 10 Makhana Importing Countries

Here are top 10 Makhana importing countries:

1. United States
2. United Kingdom
3. Canada
4. Australia
5. United Arab Emirates
6. Singapore 
7. Malaysia
8. Germany
9. South East Asia
10. European Union

Makhana Exporters in India

In a market filled with numerous Makhana exporters in India, it can feel overwhelming to choose the right one.

EXPORA is a trading company which deals in Makhana Exports from India. We’re dedicated to delivering top-notch Makhana products that truly stand out.

Why Choose EXPORA?

Sourced from origin: We maintain direct relationships with local farmers and processing facilties in Makhana-growing regions, ensuring traceability and transparency in our supply chain.

Tech-first approach: We have established a robust technology that enables us to deliver orders promptly and efficiently to our customers.

Wide Range of Varieties: Whether you prefer classic roasted Makhana or crave unique flavors, we offer a diverse range of Makhana varieties listed below:

1. Makhana Smoked Himalayan Salt
2. Makhana Jalapeno Cheese
3. Makhana Thai Sweet Chilli
4. Makhana Peri Peri
5. Makhana Cheese & Herbs
6. Makhana Barbeque
7. Makhana Black Pepper
8. Makhana Aachari Masti
9. Makhana Sour Cream Onion

Global Reach: With an extensive network of distribution partners, we cater to clients worldwide, ensuring prompt delivery of our Makhanas.

Private labels: With EXPORA private label solutions, you CAN get Makhana in your own brand.

Customer Satisfaction Guaranteed: Your satisfaction is our ultimate goal. We go the extra mile to ensure that every batch of Makhana meets your expectations.

Reach out to us at contact@expora.in to place your order or learn more about our products and services. 

 

FAQs

1.  What are the nutritional benefits of Makhana?

Incorporating Makhana into your diet can be a great way to enjoy a delicious and nutritious snack that offers several health benefits.

Our Makhana Benefits:

1. 100% Roasted
2. Healthy Protein
3. Tasty Flavors
4. Gluten-free
5. Low fat

The Agricultural and Processed Food Products Export Development Authority is responsible for 51% of India’s agricultural exports, valued at USD 53.1 billion.

 India’s agricultural exports have been greatly accelerated by APEDA, which has also improved the country’s economic growth and competitiveness in international trade. 

India has become a prominent global supplier of processed food items and a variety of agricultural commodities due to the authority’s strategic initiatives and unwavering efforts.

The majority of the work that the APEDA does is guided by its mission and the scope of work that has been delegated to it throughout all of its categories, which are mostly made up of the industries that produce fruits and vegetables, processed fruits and vegetables, animal, dairy, and poultry products, and grains.

What is APEDA?

The Agricultural and Processed Food Products Export Development Authority (APEDA) is a statutory body established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act of 1985.

It is the highest-ranking Export Trade Promotion Active entity that reports to the Ministry of Industry and Commerce.

13% of India’s exports and 6% of its overall industrial investment come from agriculture. Because of government initiatives to support the agricultural sector, including soil health cards, storage facilities, agricultural infrastructure, and irrigation regulations, the agricultural and processed food products industries are expected to thrive.

APEDA is a key player in the Indian agricultural export market, coordinating initiatives to increase the export of agricultural and processed food items.

It also promotes exports by way of several initiatives, such as the Market Access Initiative (MAI) and the Trade Infrastructure for Export Scheme (TIES).

Table of Contents:

•  What is APEDA?
•  What is APEDA registration?
•  Aim of APEDA certificate 
•  Function Of APEDA
• Role of APEDA in promoting agriculture trade
•  List of products in Apeda
•  Documents required for APEDA registration
•  APEDA Registration process
•  Benefits of APEDA
•  Conclusion

What is APEDA Registration or RCMC Registration?

Exporters of Scheduled food products under the APEDA Act are granted APEDA registration, also known as registration-cum-membership-certification (RCMC), by the APEDA authorities. No exporter may begin operations for enlisted food items by the standards if they do not hold an RCMC membership.

Aim of APEDA Certificate:

In the global food market, APEDA seeks to encourage the export of scheduled food products, registering exporters of the food product on the schedule.  It aids in the growth of the industries that produce scheduled food items for export.

Functions:

Promotion and Development: 

It spearheads initiatives aimed at promoting the export of scheduled products through various strategies, including market research, product development, and promotional activities domestically and internationally.

Quality Control: 

For agricultural and processed food items to be successful in the export market, quality control is essential. 

APEDA establishes guidelines and standards, carries out quality control procedures, and performs inspections to ensure that products remain true to their original specifications and satisfy global standards.

Market Access: 

Facilitating market access for Indian agricultural products is a key function of APEDA. Through negotiations and collaborations with foreign governments and trade bodies, APEDA works to overcome trade barriers and enhance market opportunities for Indian exporters.

Capacity Building: 

APEDA offers training programs, workshops, and seminars to enhance the capabilities of stakeholders involved in the agricultural export sector. These efforts increase exporters’ capacity with knowledge and skills to compete effectively in the international market.

Research and Development: 

Sustaining export growth requires staying up-to-date with consumer preferences, technology developments, and market changes. 

APEDA conducts research and development activities to identify emerging opportunities and support innovation in the agricultural export sector.

Role of APEDA in promoting agriculture trade:

• The authority is now a key component of the government’s success in encouraging agricultural product exports. APEDA’s share in agricultural product exports is composed of 59% cereals and fresh horticulture products, 23% cereal preparations and other processed items, and 18% animal products.
• To facilitate business dealings and support the expansion of Indian exports, APEDA has supported IT-enabled projects aimed at promoting agricultural exports. The organization has undertaken various initiatives to improve the effectiveness and efficiency of governance, including the paperless office (re-engineering, digital signatures, and electronic payment facility), the APEDA mobile app, phased delivery of online services, monitoring and evaluation, uniform access, and virtual trade fair.
• Along with indigenous and ethnic agricultural products, the authority has been concentrating on promoting the export of Geographical Indication (GI) items sourced locally to fulfill the Prime Minister’s request for “vocal for local” and “Atmanirbhar Bharat.”
• New items and export locations have been found by APEDA, and trial shipments have been made easier as a result. Almost 100 registered GI-tagged agricultural products—such as cereals, fresh fruits, vegetables, processed goods, etc.—fall under the APEDA scheduled product category out of the 150 GI-tagged agricultural products to date.
• APEDA established the first traceability system for grape exports to EU countries in 2005–2006. It is now available for organic products (Tracenet), meat products (Meat.net), and peanuts (Peanut.net). More product traceability solutions are being developed.
• APEDA has included a Blockchain solution into its GrapeNet traceability platform to encourage the usage of hybrid technology.

To facilitate communication between exporters and cooperatives or farmer producers organizations (FPOs/FPCs), APEDA has set up a farmer connect portal on its website. Thus far, 3,315 exporters and 3,295 FPO/FPCs have registered on the portal.

List of Products under APEDA

APEDA’s mandate includes the development and promotion of exports for the following planned items. 

First Schedule:

• Dairy Goods.
• Confectionery, Biscuits & Bakery Products.
• Jaggery Honey, & Sugar-based Products.
• Chocolates of various varieties, as well as cocoa and its products.
• Beverages, both alcoholic and non-alcoholic.
• Cereal and Cereal Products.
• Walnuts, peanuts, and groundnuts.
• Chutneys, Papads, and Pickles.
• Guar Gum.
• Floriculture and Floriculture Products.
• Medicinal and herbal plants.
• Rice bran that has been de-oiled.
• Green pepper marinated with brine.
• Cashew Nuts and their Confections

Second schedule of the APEDA Act.

• Basmati rice.

The Agricultural and Processed Food Products Export Development Authority (APEDA) has released export data that highlights the consistent development trajectory of India’s basmati rice, with commerce and exports rising yearly. 

In April through August 2021–2022 and 2023–2024, there was an astounding 71% increase in the amount of rice traded internationally.

With 20.10 lakh metric tonnes (LMT) exported, the nation’s basmati exports have hit Rs 18,310.35 crore in the current fiscal year.

Documents required for APEDA Registration:

The following documents are required for APEDA registration:

• Application form properly completed and signed 
• FSSAI license registration
•  IEC copy from DGFT
•  Business bank account statement
• Bank certificate endorsed by authorities; canceled check

What is the APEDA Registration or RCMC Registration Process?

Within one month following the date of their business’s incorporation, applicants must submit the application form. Once the application is properly filed and the payments are paid, APEDA issues a Registration-Cum-Membership-Certificate (RCMC) as part of the membership. The detailed registration procedure is listed below:

Step 1:  For registration, go to the APEDA website.

Step 2: Select “Register as Member” by clicking.

Step 3: Provide the required information, including the import-export code and contact details. Press the “Submit” button.

Step 4: To verify the information you provided, an OTP will be delivered to the registered email address and mobile number you provided. Go ahead and click submit to continue.

Step 5: After completing the verification process, you need to finish the online application by filling out the necessary fields and attaching the necessary files.

Step 6: Pay the required registration fees using payment options.

Step 7: Upon payment completion, an application number is issued. Keep this for use as a future reference.

Step 8: You will receive login information on the email address you registered with after issuing RCMC. By selecting the exporter login option, you can access your account.

Step 9: By selecting the “track application” option, you may see the status of your RCMC application.

Step 10:  To get RCMC, use the “view RCMC certificate” option from the RCMC menu.

Benefits of APEDA Registration

•  Exporting scheduled items requires APEDA certification.
•  Exporters can apply for a variety of APEDA-provided financial aid programs.
•  It offers database updates, testing, and advertising package construction, among other services, to help exporters sell their brands.
• Exporters can learn more about different commodities and exporting nations.
•  To increase members’ efficiency, APEDA can register them for classes in the many scheduled product categories that APEDA offers.

In conclusion, APEDA stands as a beacon of hope and opportunity for India’s agricultural sector, catalyzing export growth, driving economic development, and fostering inclusive prosperity. 

As India marches towards its vision of becoming a global agricultural powerhouse, the role of APEDA in facilitating trade, ensuring quality, and promoting innovation becomes increasingly critical. 

By harnessing the collective efforts of farmers, exporters, policymakers, and industry stakeholders, APEDA paves the way for a vibrant and resilient agricultural export ecosystem that benefits all stakeholders involved.

As we embrace the challenges and opportunities of a rapidly evolving global marketplace, let us reaffirm our commitment to harnessing the full potential of APEDA and unleashing the boundless possibilities of Indian agriculture on the world stage.

 

FAQs 

1. What is the total fee for  Apeda registration?

Ans- The professional registration charge is ₹2,999, whereas the government registration fee for APEDA is ₹5,900, inclusive of 18% GST. As a result, ₹8,899 is the entire cost of APEDA registration.

2. What is the time taken to acquire an APEDA license?

Ans-  APEDA will be assigned In 10- 15 days after the necessary paperwork is submitted. 

3. What is the requirement of APEDA registration?

1. Only one-time registration is required.
2. Required exporters of goods on a schedule
3. Permits enrolled participants to take part in training courses tailored to different industry facets.
4. Registration is required before applying for the APEDA financial assistance program.

4. What is  RCMC registration?

Ans- The  RCMC is a registration cum membership certificate. With this certificate, the business is authorized to export goods and benefit from favorable trade policies in the world today. The RCMC certificate is issued by the Federation of Indian Export Organizations (FIEO).

For decades, the US dollar, euro, and yen have reigned supreme as the preferred currencies for settling cross-border transactions. However, amidst the shifting tides of economic power and geopolitical dynamics, developing countries like India have looked for alternate means of trade and  payment settlements. 

Last year, the Government of India granted permission for the settlement of international transactions using the Indian Rupee (INR), encompassing processes such as invoicing, payment, and settlement for both imports and exports conducted in INR.

In this blog we will talk about what is internationalization of rupee, benefits of India using rupee for international trade, trade settlement agreements in rupee, challenges it presents, and more…

What is Internationalization of Rupee?

The internationalization of the rupee refers to efforts made by the Indian government and financial authorities to increase the use and acceptance of the Indian rupee (INR) as a global currency for international trade, investment, and financial transactions.

It involves various measures and policies aimed at increasing the use of the rupee in global trade, investment, and financial markets. These are:

Liberalization of foreign exchange controls: This includes easing restrictions on the use of the rupee for international transactions, allowing greater flexibility in foreign exchange markets, and simplifying regulations governing cross-border transactions.

Expansion of offshore markets: Creating offshore markets for the rupee outside of India, such as in financial centers like Dubai, Singapore, and London, where the rupee can be traded freely.

Encouraging trade settlement in rupees: Promoting the use of the rupee in bilateral trade agreements and encouraging trading partners to settle trade transactions in rupees rather than in other currencies like the US dollar or euro.

Issuance of rupee-denominated bonds: Issuing rupee-denominated bonds, also known as “Masala bonds,” in international financial markets to raise funds from foreign investors and increase the global circulation of the rupee.

Bilateral currency swap agreements: Entering into bilateral currency swap agreements with other countries to facilitate trade and investment in rupees and provide liquidity support during times of financial stress.

Financial market reforms: Implementing reforms to deepen domestic financial markets, improve market infrastructure, and enhance regulatory frameworks to support the internationalization of the rupee.

Overall, the internationalization of the rupee aims to reduce India’s dependence on foreign currencies, enhance the country’s role in global finance, and promote the rupee as a viable currency for international transactions.

Benefits of India using rupee for international trade

These are several benefits of India using rupee for international trade. These are:

1. Reduced Dependency:

• Less reliance on foreign currencies, particularly the US dollar.
• Boosts economic autonomy and resilience against external financial fluctuations.

2. Enhanced Monetary Sovereignty:

• Empowers India with greater control over its currency’s value and circulation globally.
• Enables more effective implementation of monetary policies.

3. Trade Facilitation:

• Eliminates the need for currency conversion in international transactions.
• Reduces transaction costs and simplifies cross-border trade processes.

4. Promotion of Domestic Markets:

• Encourages foreign investors to engage with India’s domestic financial markets.
• Fosters deeper integration and liquidity in domestic financial instruments.

5. Diversification of Reserves:

• Central banks and sovereign wealth funds may include rupee in their foreign exchange reserves.
• Diversifies global reserve holdings and increases demand for Indian assets.

6. Strengthening Regional Influence:

• Bolsters India’s influence in regional financial systems, and positions it as a major economic player in Asia.
• Facilitates closer economic ties with neighboring countries.

7. Promotion of Offshore Financial Centers:

• Spurs the development of offshore financial centers in India.
• Attracts foreign investment and fosters financial innovation.

International Trade in Rupee: Trade Settlement Agreements

Trade settlement agreements in rupee refer to arrangements where international trade transactions are conducted using the Indian rupee (INR) as the settlement currency. These agreements enable buyers and sellers involved in cross-border trade to settle their transactions in rupees rather than in a foreign currency such as the US dollar or euro.

India has taken some significant steps in the direction of internationalization of rupee. The first major decision came in July 2022, when RBI allowed the settlement of international trade in Indian Rupee.

Timeline:

1. July 2022: RBI allowed the settlement of international trade in Rupee.

2. December 2022: India saw its first settlement of international trade in rupee with Russia – as part of the ‘International Settlement of Trade in Indian Rupee’ mechanism initiated by the RBI.

3. March 2023: The RBI authorized banks from 18 countries to establish Special Rupee Vostro Accounts (SRVAs) for the purpose of settling payments using Indian rupees.

Countries: Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, and the United Kingdom.

4. April 2023: Malaysia agreed to settle trade in Indian rupees.

How does trade settlement in rupee help the trading community and Indian economy at large?

This move has the potential to enhance India’s trade relations with nations facing global sanctions.

• Nations cut off from the SWIFT payment system can engage in trade with India through this mechanism, which enables secure message exchange based on mutual agreement between partner countries.
• Amidst India’s widening trade deficit, especially in May 2022, this initiative can help stabilize domestic currency fluctuations and boost Indian exports to countries experiencing a shortage of foreign exchange reserves.
• The central bank’s discussions also include observations on the Chinese yuan’s global expansion, driven by China’s attraction of global manufacturers and increased gold purchases using the yuan. The yuan and the Indian rupee are poised to play significant roles in the currency market dynamics, particularly in the context of export competitiveness between India and China.

Challenges of Using Indian Rupee for International Trade:

Here are some challenges associated with using the Indian Rupee for international trade:

Currency Convertibility: The Indian Rupee faces restrictions on full convertibility, which can hinder its seamless use in international transactions.

Exchange Rate Volatility: Fluctuations in the value of the Rupee against major currencies can create uncertainty for businesses engaging in international trade, affecting pricing and profitability.

Limited Acceptance: Compared to major international currencies like the US Dollar or Euro, the Indian Rupee may have limited acceptance in global markets, leading to complications in trade negotiations and settlements.

Liquidity Issues: In some regions, there may be limited availability of Rupees, resulting in liquidity challenges for completing transactions and financing trade deals.

Regulatory Hurdles: Compliance with diverse regulatory frameworks across different jurisdictions can pose complexities and increase transaction costs for businesses using the Rupee for international trade.

Infrastructure Constraints: Inadequate banking infrastructure and cross-border payment systems may impede the efficient processing of Rupee-denominated international transactions.

Risk Management: Businesses engaging in Rupee-denominated trade transactions may face challenges in managing currency risk effectively, particularly in hedging against adverse exchange rate movements.

Perception and Confidence: The perception of the Rupee’s stability and reliability in international markets may influence its acceptance for trade purposes, requiring efforts to build confidence among global trading partners.

Conclusion

Many countries–both big and small– have shown willingness to use Indian rupee for trade, India’s commerce minister, Piyush Goyal said. Some of these countries include Bangladesh, Srilanka and gulf countries as well.

India’s commitment to promote the use of Indian rupee as international currency marks a significant stride towards the internationalization of Indian Rupee. By addressing the challenges it presents, India can make the most of using the Rupee for global trade. This will strengthen its economy, build closer trade connections worldwide, and contribute to sustainable growth and development at home and abroad.

In recent times, exports in the agriculture sector in India have shown remarkable growth.

Exporting agricultural products is a big opportunity, but you should know important things before shipping the products.

The shipping of agricultural products needs detailed planning and strategic approach.

In this blog, we’ll explore the top things to keep in mind before export of agricultural products in the international market.

1. Inspection and quality control

Conducting the inspections can identify issues which helps to meet the expectations of customers and reduces the risk of rejections and financial losses.

The shipping of agricultural products involves rigorous quality control measures at each stage such as from harvesting to packaging.

2. Temperature control during shipping agriculture products

Agricultural products such as fruits, vegetables, and specific grains are susceptible to variations in temperature. 

It’s crucial to invest in refrigerated containers, trucks, or warehouses to make sure that the recommended storage conditions are maintained throughout the process.

3. Quality assurance in agriculture trade

When an importer and an exporter make a deal to export agricultural products, they usually decide on certain quality standards. 

For example, Exporting the rice, following standards you should know:

• Quality Standards:  Set standards for rice quality, including moisture content, grain size, and absence of contaminants.
• Chemical Details:  Ensuring food safety by following pesticides regulations.
• Hands-on Inspection : If the pesticide inspection fails, then  physical inspection is necessary to assess the cultivation and storage practices.

. So it’s important to check if they meet those standards. 

4. Fumigation of shipping containers

Insects in agricultural products can destroy them. Before you send out any batch of agricultural products, make sure to fumigate the container with the fumigation gel to get rid of the insects. 

After sealing the container, allow the gel to sit for a maximum of 3 days. If bugs are found in the product at the delivery port, you may be held responsible for covering all associated costs, and the customs department might have to destroy the entire shipment.

5. Proper packaging

 Maintaining quality during shipping is crucial for agricultural products. Successful export depends on effective packaging.

Different agricultural products require different packaging standards. Some products need jute packaging, while others require to be packed in cans, mesh bags or ppe bags. 

Also, make sure to follow the rules for packing things properly. It’s important to know the packaging standards of different commodities.

For efficient customs clearance, proper labelling you should include things such as:

• Product details
• Expiration dates
• Handling instructions 

6. Choosing the right shipment method

The success of export of agricultural products is influenced by the right shipment method. 

Factors such as the type of product, distance, and required delivery timeframe should be considered when selecting between air, sea, or land transport. 

Air freight delivers quickly, but it can be costlier, whereas sea freight is economical but takes longer. Achieving the balance between these factors is crucial for cost effectiveness and meeting expectations.

 7. Documentation

Accurate and complete export documentation is a fundamental aspect of international shipping.

The common documents include :

1. Phytosanitary certificate
2. Fumigation certificate
3. Inspection certificate 
4. Veterinary certificate. 

For a smooth shipping process, the verification and accuracy of these documents are crucial, as is ensuring they comply with the regulations of both the exporting and importing countries.

8. Protection of agricultural goods

When you ship containers of farm products, it’s important to protect them. For this,  you should cover the floo rs and walls of the container with special carton paper so that  your goods won’t touch the metal inside

You can also hang the dry bags on the walls. These bags help to control the moisture in the container.

In general you can use at least 10 dry bags for a smaller 20 ft container and 15 dry bags for a bigger 40 ft container. It’s like giving your goods their own protective gear!

9. Rules and regulations for shipping

Shipping agriculture products involves different regulations and compliance standards. Before the shipping process starts, it is crucial to research and understand the regulations of the origin and destination countries. 

This includes requirements for documentation, standards for labelling, and any restrictions imposed on specific products.

10. Customs clearance and import duties

The customs clearance process is a significant part of international shipping.

 Specific import duties, taxes, and fees applicable to agricultural products in the destination country are essential for budgeting and compliance.

Experienced customs brokers can simplify the customs clearance process and help businesses avoid unnecessary delays or penalties.

11. Insurance

To deal with unforeseen circumstances, such as natural disasters, accidents, theft, etc., comprehensive insurance coverage is essential to protect against financial losses. 

You should select the appropriate cargo insurance options based on the nature of your agricultural products and the shipping route.

12. Building relationships

For a successful agriculture product shipping operation, collaboration with shipping carriers, logistics providers, and distributors is very important. 

Building strong relationships with partners enhances transparency, communication, and efficient problem resolution.

It should be remembered that rigorous study, cautious planning, and constant adaptability are all necessary for exporting agricultural products. Reach out to us at contact@expora.in for all your agricultural exports and imports requirements.

In the evolving world of global agriculture, farmers, traders, and stakeholders need to remain updated with market trends. As we step into 2024, the world of agricultural commodities is about to undergo major changes. 

The projection for the next ten years is a 1.2% annual growth in global demand for agricultural commodities (including non-food applications). This growth rate is significantly lower than the 2.2% annual growth seen in the previous ten years.

Let’s explore key market trends, analyzing what to watch out for in the dynamic realm of global agro commodities trade.

Technology Integration in Agriculture

The fusion of technology into agriculture is transforming the shape of agro commodities. Precision farming, drone-assisted monitoring, and AI-driven analytics are among the technological advancements that are elevating efficiency and productivity in the sector.

Agro-trade stakeholders should closely monitor the implementation of smart farming technologies in 2024, as they affect the quality and consistency of agro commodities. To stay competitive in the global economy, it will be essential to understand and use these technologies

Sustainable Agriculture and Ethical Sourcing

In 2024, expect a surge in demand for agro commodities produced through sustainable and ethical means. Customers are increasingly recognizing the impact of their dietary decisions on the environment and society.

In 2024, anticipate a surge in demand for agro commodities as consumers actively seek products produced through sustainable and ethical means.

 Beyond organic certification, this trend includes actions that support soil health, biodiversity, and ethical labor standards.

 As ethical sourcing becomes a key factor in determining market dynamics

Global Trade Policies and Agro Commodities

Trade policies have always been significant in shaping the flow of agro commodities across borders. In 2024, geopolitical shifts and changing international relations are likely to influence global sales.

Trade tensions, tariff adjustments, and regional agreements can impact the accessibility and affordability of agro commodities. Agro traders should monitor global policy developments. 

Agro dealers should keep an eye on changes in foreign policy and be ready to modify their strategies to successfully negotiate the complex rules of global commerce.

Climate Change Resilience

The emergence of digital technologies has led to a significant shift in the agricultural trade industry. In the supply chain for agricultural commodities, blockchain, IoT (Internet of Things), and AI-driven platforms are becoming essential for traceability and transparency. 

We predict a faster adoption of digital solutions in 2024 to improve the overall efficiency of agro-trade procedures, minimize fraud, and speed up transactions.

Organizations that adopt and incorporate these technologies are expected to get a competitive advantage. This ensures smoother transactions and increased trust among global stakeholders.

Shifts in Consumer Preferences

Consumer preferences play a significant role in shaping agro-commodity markets. In 2024, there is a noticeable shift towards healthier and plant-based diets. This shift is increasing demand for alternative protein sources, non-GMO products, and organic produce. 

The players involved in the agro-trade industry need to align their approaches with the changing preferences of consumers, with a particular emphasis on the growing need for diets that prioritize health and the environment.

Tech Giants Investments in Agro Commodities

The agricultural landscape is witnessing a profound shift as major corporations invest in agro commodities. Tech giants such as Bayer AG, Cargill, etc. are taking center stage in reshaping the sector through innovative technologies

In addition to demonstrating their dedication to the advancement of agriculture, their investments can completely change our understanding and interactions with the agro-trade ecosystem as a whole.

Supply Chain Challenges and Resilience

The COVID-19 pandemic has brought attention to the weaknesses in international supply networks, and the agricultural commodities industry is not an exception. In 2024, building resilient supply chains will be crucial.

From logistics and transportation to storage and distribution, agro-trade stakeholders must assess their supply chains to withstand unforeseen disruptions.

Using technology, diversifying suppliers, and implementing contingency plans are essential steps to ensure the smooth flow of agro commodities across borders.

Investment in Research and Development

Research and development (R&D) in agro commodities are gaining privilege. This helps to focus on developing resilient crops, improving yield efficiency, and sustainable farming practices.

In 2024, we predict increased collaboration between research institutions, agribusinesses, and governments to foster innovation. Those involved in the agro-trade can gain a strategic edge by keeping up with developments in agricultural research.

The worldwide market for agricultural commodities is about to undergo a significant change in 2024. The main factors influencing the dynamics of agro-trade will be technical advancements, geopolitical changes, climate resilience, shifting consumer tastes, and resilient supply chains. 

Farmers, traders, and all stakeholders participating in the global agro commodities market must actively stay informed and adapt to these trends to ensure success.

As we navigate through the challenges and opportunities of 2024, a proactive approach toward change and staying ahead of market trends will undoubtedly lead to a prosperous future in the world of agro-trade.