Question

Which of the following agricultural commodity earn the highest foreign exchange through export during 2020-21 ?

• A. Flower
• B. Maize
• C. Processed vegetables
• D. Rice

Hint:

India is the world's largest exporter of rice, accounting for nearly 40% of global rice trade.
Within rice exports, non-basmati rice has surpassed basmati rice in terms of both volume and total value in recent years.

Answer 1

The Correct Option is D

Step 1: Understanding the Concept:
India is one of the largest producers and exporters of agricultural commodities globally.
Identifying the major foreign exchange earners among these commodities helps in understanding national export priorities, trade surpluses, and international demand dynamics.

Step 2: Detailed Explanation:
During the fiscal year 2020-21, India's agricultural exports witnessed a significant increase, with rice emerging as the single largest contributor to this growth.
Rice exports from India are categorized into Basmati and Non-Basmati rice.
In 2020-21, the export value of Non-Basmati rice grew by an extraordinary 136%, reaching USD 4.8 billion, while Basmati rice exports contributed USD 4.02 billion.
Together, the total foreign exchange earned from rice exports exceeded USD 8.8 billion, representing more than 20% of the total agricultural export earnings.
Other commodities listed, such as floriculture (flowers), maize, and processed vegetables, also contributed to exports, but their individual shares were significantly lower:
- Floriculture exports were valued at around USD 75 million.
- Maize exports stood at approximately USD 630 million.
- Processed vegetables contributed around USD 380 million.
Thus, rice was the highest foreign exchange earner among all agricultural commodities during this period.

Step 3: Final Answer:
The agricultural commodity that earned the highest foreign exchange through export during 2020-21 is Rice (Option D).