Tamil Nadu's Agricultural Exports: Unlocking Value in Unconventional Markets

Strategic Insights -

Tamil Nadu, with its robust agricultural sector, is a key player in India's food and horticulture exports. Despite being the eighth-largest producer of agricultural exports in the country, the state has seen meager growth in its exports over the past seven years, accounting for less than 5% of the total. However, the state boasts unique, high-quality GI-tagged agricultural produce that can capitalize on the growing global demand.

Key Takeaways:

  • Tamil Nadu has the potential to increase its agricultural exports by focusing on value addition, tie-ups with enterprises specializing in Ayurvedic solutions, and adhering to quality control.
  • The state is the third-largest producer of turmeric in India, and Erode Manjal (Erode Turmeric) holds a GI tag. However, only 15% of turmeric is exported, with potential for significant growth through value addition.
  • Tamil Nadu is the largest producer of bananas in India, growing over 30 varieties across 12 districts. While hardly 5% of banana is exported, native varieties like Nendran and red banana are gaining interest among consumers in UAE and Saudi Arabia.
  • The state can increase banana exports from the current 5% to 20% over the years if there is a special focus on exports, according to Manikutty Subramanian, director of Trichy-based TN Banana Producer Company.
  • The state can also tap into the unexplored category of flower exports, with a share of 20% in India's flower production and potential for value addition through processing and packaging.
  • Establishing a floriculture park at Kodaikanal can be a game-changer in exports, as it will enable flowers to be processed and packed according to the requirements of various countries.

Statistics:

  • Tamil Nadu recorded $1.5 billion agriculture sector exports in 2024-25, trailing behind Madhya Pradesh's $1.7 billion and Karnataka's $2.2 billion. (Source: NIRYAT portal of the Union ministry of commerce and industry)
  • The state accounts for less than 5% of India's agricultural exports over the past seven years. (Source: Unspecified data)
  • Tamil Nadu produces about 235 lakh tonnes of horticultural crops, including vegetables, fruits, spices, aromatic crops, medicinal crops, flowers, and plantation, across 16 lakh hectares.
  • The state targets a production of 130 lakh tonnes of food grains, including rice, millets, and pulses, in the current financial year.

Sources:

  • "Data available with the NIRYAT portal of the Union ministry of commerce and industry"
  • Unspecified data
  • S Chandramohan, director and group president finance, TAFE, and past chairman of CII Tamil Nadu
  • Manikutty Subramanian, director of Trichy-based TN Banana Producer Company
  • Anil Kumar SG, founder and CEO of Chennai-headquartered agri-value chain enabler, Samunnati
  • R Murthy, president of Flower Growers Association of TN