Gulf demand boosts agri exports.

With significant rise in export of processed fruits and vegetables and poultry products, India's agricultural product exports rose during the first two quarters of the current financial year despite decline in export of basmati rice.

Basmati rice is one of the biggest constituents of India's farm products export.

According to the Agricultural and Processed Food Products Exports Development Authority (Apeda), the export basket went up to Rs 17,557 crore during April-September 2010 from Rs 17,018 crore achieved in the previous year.

The marginal growth was achieved mainly because of significant rise in exports of meat and fruits and vegetables and not on account of basmati rice.

Total exports from the Apeda basket went up to Rs 34,686 in 2009-10 from Rs 34, 450 crore achieved during 2008-09. "With basmati rice exports looking up in the recent months, the total agricultural products exports would surpass last fiscal's achievement," Asit Tripathy, chairman, Apeda told FE.

Export of poultry, livestocks and meat products went up to Rs 4,112 crore during the period from Rs 2,787 crore achieved in the previous fiscal, an increase of 47%. Similarly, processed food products such as groundnuts and guar gum went up to Rs 3,301 crore from Rs 2,252 crore during the period, a rise of more than 46%.

Interestingly, the rise in export of farm products had been achieved despite decline in export of cereals mainly of basmati rice from Rs 8,225 crore during April-September 2009 to Rs 6,161 crore during same period of current fiscal, a fall of 25%.

Basmati rice exports were to the tune of Rs 10,838 crore in 2009-10 as against Rs 9,477 crore achieved in the previous year.

"Emphasis on adherence to quality standards, geographical proximity and growing contract farming are the main factors leading to rise in export of fruits and vegetables and meat products," Tripathy said.

He said rising investment in cold storage facilities in western Indian states of Maharashtra and Gujarat and growing number of contract farming, has helped the country export fresh fruits and vegetables to Gulf countries.

"Geographical proximity to the Gulf region is also helping the exports," he said.

Demand for certain items like prepared and preserved gherkins and cucumbers have almost doubled in the West Asian countries in the last two years. Even banana exports are looking good now because of strong demand from Gulf region.

West-Asia countries, which have traditionally sourced bananas from Philippines , have been gradually shifting their focus towards India because of improved quality and price advantage.

Another milestone for Apeda had been rise in meat exports during the last few years. Export of frozen meat exports has been rising steadily during last few years because of various safety measures initiated by the premier exports promotion body under the commerce ministry.

Export of more than Rs 34,000 crore had been achieved despite the continuance of the government's ban on the export of non-basmati rice export in 2008 which used to contribute around Rs 7,000 crore to Apeda's export kitty.

Source : news.in.msn.com