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Agricultural Trade In International Market

The EU is the world's number one trade in agricultural products, both in terms of imports and exports. basically, the global export or import of agricultural products helps to fulfil the requirement of agricultural products as a time of scarcity due to climate change. ultimately contributing to the prosperity of farmers, industry and consumers. Over several years, the agricultural market has faced increased volatility, which has a direct impact on stakeholders in the food chain. unnecessary price increases can result in political unrest like in 2007-2008

The development of the agricultural trade market requires constant monitoring or prospective analysis. which helps the agricultural trade market to stand still or increase

Agriculture sector plays a very important role in the economy of any developing country and for countries like India where more than 50% of the population is engaged in agriculture. India is the largest supplier of agricultural products in the world. In the time of covid, when the entire country stopped or disrupted its supply chain, India ensured its transportation very smoothly because agricultural products were very easily scratched. Now agricultural trade is becoming global, increasing choice for consumers in the international market and creating perfect competition.

Every country has several factors that affect the agricultural sector, but basically there are two main elements, the first is the economic policy of the country. and the second important factor was the socio-political imperative to keep food prices low on the market. agricultural trade policy helps countries to produce and transport the product smoothly. for any country or for any developing country, agriculture is a very important sector to get a good economy.

WTO also has many agreements on agriculture which include Market Access, Domestic Support, Export Competition. Government of India is organizing a virtual meeting with major food importing countries related to agricultural products around the world to promote the GI which is registered with the Government of India. They organized the 17th V-BSM with Kuwait, Belgium, Switzerland and Iran.

The same kind of program was organized for other countries like (geographical indication) Germany, Thailand, Bhutan, Azerbaijan, South Africa and Qatar (organic product) USA, United Arab Emirates. The Government of India has set up thirteen agricultural cells in Indian embassies in Bangladesh, United Arab Emirates, Iran, Malaysia, Indonesia, Vietnam, Saudi Arabia, Japan and Argentina.

To improve India's imports and exports in these countries by promoting trade, technology, tourism and investment objectives. Government of India has launched many plans and schemes to promote agricultural production. Agricultural Export Policy 2018 (AEP) Government of India has presented a comprehensive plan to improve the agricultural export policy.

The Financial Assistance Scheme (FAS) is an export promotion program by the Agricultural and Processed Food Export Development Authority. for the years 2021-2022 to 2025-2026 it was part of the financial year

Literature And Review
Agricultural trade helps in food storage for food shortages due to climate change and other reasons essentially contributes to the prosperity of farmers, industry, consumers. in India, Rollin plays a very important political, social and economic field. In recent years, India's agricultural trade has grown in global agricultural trade. The growth rate of agricultural trade in India is around 3.5% in 2022-2023, it was 3.0% in 2021-2022[1]

Indian Agricultural Trade
India is one of the largest producers of agricultural products in the world. approximately 58% of India's population is engaged in agriculture. India is always on the list of one of the largest agricultural suppliers. There are so many products from India that are in high demand in the global agricultural market.[2]

Non-basmati rice:- is the second most exported agricultural product in FY 2022. In 2021-22, India exported non-basmati rice worth INR 456.5 billion.

SUGAR: - in 2013-2014, India increased its sugar exports by an incredible 291%. in 2022, India exported most of its sugar to Sudan and Bangladesh. in 2021-2022, India exported sugar worth INR 344.44 billion

Fruits and Vegetables: -India is one of the world's largest producers and suppliers of fruits and vegetables. in 2021-2023, India earned 65.61 billion in fruit income. fruits like lychee, banana, pomegranate etc.

In 2021-2022, tea production in India was 1344.40 million kg. coffee production in the same period was 3,420 million tons, a year-on-year increase of 2.39%.


Rice is the largest export product from India and contributed more than 19% of total agricultural exports in 2021-2022. buffalo meat, spices, sugar are among the largest exported products with 7%, 8%, 9%. Higher seafood exports at $7.7 billion benefit farmers from various states

WTO [World Trade Organization]

The WTO is an organization that aims to reduce excessive taxation and excessive burdens on certain products, and for products originating from any particular country, it basically promotes free and fair-trade practices worldwide. . which reduced subsidies and trade barriers to improve fairness and competitiveness.

In 2015, the historic decision to cancel agricultural export subsidies and other new rules for other forms of farm export support.[3]

WTO Agreement On Agriculture

The WTO's agricultural agreements provide a framework for long-term agricultural market and domestic policy reform. the objective of this agreement is to promote competitive and tariff trade practices

The agreement basically includes 3 aspects:
  • Export Competition
  • Domestic Support
  • Access To The Market
In this agreement, WTO members commit to schedules or schedules of commitments that set limits on the tariffs they can apply to individual products and the levels of domestic support and export subsidies.

Committee on Agriculture
Farmers pledge to work to improve trade and politics. The current chairman is Mr Kjetil tysdal (Norway)

Agricultural Negotiations

The agricultural trade reform did not end with the birth of the agricultural agreement. WTO members continued agricultural negotiations on trade reform.

The WTO member took an important decision on trade in agricultural products in 2015 at a ministerial conference in Nairobi, Kenya. which includes a rule of trade for securing food for cotton and many other purposes.

At the 2013 Bali Ministerial Conference, Indonesian ministers also agreed on a package of issues in agriculture

The main benefit of the world's wild trade in agricultural products is to reduce the scarcity of any agricultural product in any place and to get benefit from the product, in India the agricultural sector contributes about 17% of the GDP and provides employment to about 58% of the population.

International Relationships:

Agricultural trade has a major impact on international relations. as trade increases and another country starts depending on the country, then conflicts between those countries also decrease and peace is established.

Economic Growth:

With the increase in trade in agricultural products, the country's economy is also improving. 17% of India's economic GDP comes from the agricultural trade sector


A country like India which depends on agriculture and trade. they get jobs in agriculture. in India 58% of the population is employed in agriculture and agribusiness provides employment at various levels.

Agricultural trade also opens the door to research. How production moves around the world. Each country has the opportunity to explore the product and develop its own version


Insufficient Infrastructure

This is one of the biggest limitations for any agricultural trade market. It increases the difficulty in exporting or importing any product. Inadequate infrastructure is an obstacle to the rapid growth of trade in agricultural products. Especially in the countryside. problem like lack of irrigation, market, transport. And there is no correct delivery system

Lack Of Access To Credit And Finance
Small farmers do not get loans and credits easily. the limited availability of available credit limited farmers to invest in modern agricultural equipment and the quality of seeds and products.

Water Shortage And Irrigation
Agriculture of developing countries like India which does not have sufficient resources depends on monsoon for some time it is more than requirement or less than requirement and due to poor water management, it affects the agriculture of the country

Climate Change
Climate change is one of the biggest issues facing the world, it also affects the agribusiness or agricultural sector.

Limited Access To Technology And Research

Limited opportunities for technology and research limit farmers to adopt new technology that does not increase agricultural production and create barriers

Can Agricultural Trade Improve Total Factor Productivity? What Is The Role Of The WTO
Improving the overall productivity of agricultural factors is very important for achieving high-quality and sustainable agricultural development. as the world's major agricultural producers, WTO countries play an important role in agricultural trade, and the WTO is well positioned to play a very important role in improving total agricultural factor productivity.

WTO helps a country to trade freely from one place to another and has facilitated trade. And it resolves conflict arising from trade, which keeps the peace and allows for better follow-up of trade. The WTO thus not only provides a valuable insight into the relationship between agricultural trade and agricultural production. But the argument for formulating a new policy for agricultural productivity and promoting a more sustainable agricultural sector [4]

With the increasing digitization of economies, the impact of digital and e-commerce on agricultural trade is an unexplored area. research could delve into the challenges and opportunities presented by digital commerce, an easy place for manufacturers to e-commerce

The compatibility of agricultural trade with climate change and environment commitments is very complex area research could explore the solution and effect of climate change on agricultural sect.

Agricultural trade grew rapidly in the 2000s. Most of India's population depends on the agricultural sector. It is one of the very important industries for the world. India's growth has grown rapidly in the agricultural sector The WTO agreement has facilitated trade and created a competitive and fair trading environment that has helped countries export products easily.

And now due to the import and export of agricultural products, every country is able to produce food and medicine and store agricultural products for itself. India's agricultural exports increased in 2022-2023. China is one of the largest exporters of agricultural products in the world. The global food and agriculture trade network is becoming highly balanced.

Today, many countries are connected to many trading partners, which can strengthen the balancing capacity and resilience of the network. However, only a few countries still account for the majority of value trade, and only a few countries purchase large quantities of food and agricultural products from many different exporters. To improve their resilience and ensure food security and a healthy diet, countries should strive to diversify products. forced and increase their no. business partners.

List of References:
  1. Dr. Gopal Das Bhagwan Agriculture and food industry and exports [2023] accessed 25th September 2023
  2. Import export federation Best agricultural product exported from India [17th October 2022] accessed 25th September 2023
  3. WTO agriculture accessed 27th September 2023
  4. Abizadeh,S,and Pandey. M Trade openness, structural change and total factor productivity [2009]

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