Exports of several agriculture products including rice, spices and tobacco have registered negative growth in August mainly due to decline in prices in the global commodity market.
Tea, coffee, cereals, cashew and oil meals too recorded negative growth during the month. In all, 8 out of 13 main agriculture products that are closely monitored by the Commerce Ministry, were in the negative zone.
"Prices of agri-produce in the global market is generally depressed due to over supply. But, on the other hand, prices here are much above the global prices making domestic market a better option than exports," said Ajay Sahai, DG & CEO of Federation of Indian Export Organisations. "These twin factors are primarily responsible for decline in exports of many agri commodities," he added.
During the month, exports of rice, spices and tobacco declined by 3.15 per cent to $ 600 million, 2.18 per cent to $ 227 million and 14.7 per cent to $73 million respectively.