In FY26, India’s export diversification generated nearly $202 million in additional exports through new product-entry combinations, with sectors like marine products, pulses, and agri-processing contributing significantly. At the same time, India’s agricultural exports rose 2.8% to $52.55 billion despite geopolitical disruptions and global inflationary headwinds.
While these numbers reflect resilience, they also underline structural limitations. Growth in agri exports today is not being constrained by demand – it is being constrained by logistics inefficiencies, fragmented cold-chain systems, inconsistent quality management, and high wastage levels.
The wastage problem
Statistically, about 15-20% of India’s agricultural produce is estimated to be lost annually due to inadequate storage, transportation and processing infrastructure. This becomes even more critical in perishable categories such as seafood, vegetables, and dairy, where international buyers demand consistency, traceability, and shelf-life assurance.
Countries competing alongside India – Vietnam, Thailand, and Brazil – have significantly invested in integrated agri-logistics ecosystems, digital traceability, and export-oriented processing clusters. India now needs to accelerate in the same direction.
Climate change adds pressure
The pressure is also building as climate change disasters affecting global trade flows intensify. Already, food supply chains around the globe are being affected by heatwaves, unpredictable monsoons, high freight prices, and geopolitical conflicts. The recent turmoil in West Asia had an impact on rice shipments to Gulf markets – a case in point that supply could be disrupted even with agile supply chains in place.
India needs a single chain of supply instead of a disjointed agricultural value chain.
Three key reforms needed
Cold-chain infrastructure: Despite all the advances, there is still a lot to be done from production centres to refrigerated logistics. Investment is needed in decentralized storage hubs, reefer transportation, modern packhouses, and metro city distribution centers.
Digitisation of supply chain: Farm-to-fork traceability is gaining momentum as a global demand. With AI-powered demand prediction, blockchain-enabled traceability, and smart inventory management, Indian exporters can enhance transparency, minimize wastage, and cut down on delays.
Value addition: Exporting raw commodities will only provide short-term returns. Processed foods, ready-to-cook products, nutraceuticals, and specialty agricultural products make more profit and have high market demand. The increase in processed food exports by just 2% in FY26 is a minuscule figure – huge potential exists.
The golden opportunity
India has a great golden opportunity in the next 10 years. Food value chains are being re-aligned, and buyers are seeking to diversify their food sources. India is on the path of scaling, diversification, and entrepreneurship.
The future of agri exports won’t be decided just at farms – it will be determined at warehouses, logistics corridors, cold chains, and technology platforms. Supply chain reforms, if brought to fruition, can help India come a long way from being a large agricultural producer to becoming one of the world’s most trusted food supply partners.
