India’s Agriculture Exports Surge 30%: Key Factors Behind the Revival | India Business News

In a surprising turnaround, India’s agriculture exports have surged significantly, posting a 30% year-on-year growth on a 3-month moving average basis, according to a new report by SBI Mutual Fund.This marks a strong revival in export volumes and could signal a broader comeback for the sector that struggled with inconsistent growth in recent years.The report, which tracks agricultural export trends since April 2019, highlights that this recent momentum is not a one-off spike. After remaining subdued between mid-2022 and early 2024, export volumes have sharply picked up since December 2023, entering a consistent upward trajectory.In January 2025, agriculture export volumes grew by 39% year-on-year, followed by a still-impressive 15% in February. The sustained 3-month average of 30% suggests more than just seasonal demand—it points to a structural rebound in India’s farm trade performance.The last time India saw such explosive growth in agriculture exports was during the peak of the COVID-19 pandemic in 2020-21. At that time, export volumes soared due to heightened global demand for food security, with December 2020 recording a jaw-dropping 100% plus YoY growth.However, as the base rose and global conditions normalized, export growth waned through 2021 and became erratic in 2022 and 2023. The current rebound now comes after several quarters of underperformance and could reshape market expectations for the sector going forward.Fuelling this export momentum is also a record-breaking rabi season. According to the government’s Second Advance Estimate for 2024-25, India is expected to produce 164.5 million tonnes of food grains, a 6% increase from last year’s 155 million tonnes. Strong gains in rice and coarse cereals have led this jump, helping maintain domestic supply while creating export headroom.This combination of rising output and accelerating exports bodes well for India’s rural economy. While surplus production ensures food price stability, robust export activity improves farmer earnings and strengthens India’s position in the global agri-trade market.The data suggests that India’s agriculture sector is not just recovering but evolving into a more resilient and outward-looking growth engine. As volumes continue to rise, the next few months could determine whether this is the beginning of a long-term export super cycle.