There has been a significant growth in exports of various Indian industries, as we have discussed in our newsletters before. Today we note the growth in Indian Agriculture and allied commodities and Pharma exports, which have both grown by 18% April 2020 to February 2021. Oxygen exports have also reached a 3-year high in just the first nine months of FY 2021. This milestone has unfortunately been reached when the country is reeling with a shortage of oxygens and as deaths rise due to covid and specifically due to lack of oxygen availability.
Efforts have also been made to minimise the shortage of containers which has been hindering a lot of the trade. Discussions have also started with both public and private manufacturers to set up production lines for steel containers. Government is trying to put in place a 10-year action plan to increase domestic steel shipping container production capacities. With the rising covid cases across the country and the abundant lack of resources to tackle it, we are yet to see how the situation affects trade and small business.
Indian Agricultural and Allied Commodities exports grow by 18% to INR 2.74 lakh crore during April 2020 to Feb 2021 (source)
The export of agriculture and allied commodities during April 2020 to February 2021 were Rs 2.74 lakh crore as compared to Rs 2.31 crore in the same period last year, indicating an increase of 18.49%. The commodities displaying significant positive growth in exports were wheat, other Cereals, rice (other than basmati), soya meal, spices, sugar, raw cotton, fresh vegetable, processed vegetables etc. The imports of agro and allied commodities during April 2020 to February 2021 were Rs 1,41,034 crore as compared to Rs 1,37,014 crore in the same period last year witnessing a slight increase of 2.93%.
Despite Covid-19, the balance of trade in agriculture has favourably increased during April 2020 – February 2021 to Rs 1,32,579 crore as against Rs 93,907 crore during the same period in 2019-20, a growth of 29.16%
India Exported Nearly 9,300 Metric Tonnes of Oxygen in FY21 Despite Pandemic Rolling on (source)
While exports from India has reached a 3-year high in just the first nine months of FY21, the government has now decided to float a tender for importing 50,000 MT of medical Oxygen from abroad. With the supply of oxygen low across the country and state government demanding more supply from the Centre, official data shows that nearly 9,294 metric tonnes (MT) of Oxygen was exported by India in just the first three quarters of the 2020-21 financial year.
The official figures of the Commerce Department, Oxygen exports in the April-January period of FY21 increased in comparison to last year and it was more than double the total 4,502 MT of exports in the previous year. This was in the form of liquid oxygen, which can be later channeled for both industrial and medical use, a report in Moneycontrol said.
On April 18, India’s oxygen consumption touched an all-time high of 4,300 MT per day. Pre-COVID it was 850 MT per day and the previous peak was 3,100 MT on September 18, 2020. Average stock level in hospitals of several states had declined to 1 day as compared to 3 days before the pandemic.
Indian pharma exports up 18% to a record $24.44 bn in pandemic year (source)
Indian pharmaceutical exports have registered a record growth in the pandemic year (2020-21), bucking the global trend of 1-2% negative growth in 2020. As per the quick estimates of the Department of Commerce, drugs and pharmaceutical exports for the FY-21 (Apr 2020 – Mar 2021) touched $24.44 billion, a record growth of 18.07%. Exports during FY 2020 was $20.58 billion with growth rate of 7.57%.
North America is the largest exporting region for India with more than 34% share. Country wise exports to USA, Canada and Mexico recorded growth of 12.6%, 30% and 21.4% respectively.
Container shortage eases, waiting time at ports down (source)
The shortage of containers has been eased with 58% additional exports being managed in March year on year, a senior government official said on Tuesday. Pawan Agarwal, Special Secretary in the Logistics Division of Ministry of Commerce and Industry, said close coordination Is being maintained between shipping lines and exporters.
Congestion at major ports globally due to Covid 19 pandemic and an acute imbalance between exports and imports domestically were largely factors responsible for container shortage. Discussions have been initiated with steel manufacturers for producing COR-TEN steel at competitive prices. Railway wagon manufacturers, BHEL, and private manufacturers DCM-Hyundai and Balmer & Lawrie are being asked to set up production lines
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