Food Exports Research Articles

Aerogarden: An aeroponics innovation project linking artificial intelligence and sustainability

Every year, 10.8 to 19.1 billion tonnes of CO2 are emitted through food exports, which accounts for roughly 21% - 37% of the world’s global total emissions. In the urge to expand businesses and ensure availability of all crops throughout the year, the quality of air is being compromised. The demand for crops rises in tandem with population growth and improvements in human well-being. In addition, most of these exported crops lose their nutritional value due to the unhealthy exposure of preservatives and other farming chemicals. There are multiple factors involved in crop production: land, labour, transportation, storage etc. Aeroponics is a relatively new farming system that eradicates numerous problems by using less land and water and requiring minimal labour and nutrients. The aim of this project is to convert the aeroponic farming unit into a 100% carbon-neutral, self-reliant unit called Aerogarden by integrating modern technology like Artificial Intelligence (AI). Every household having an Aerogarden unit can access fresh organic vegetables and microgreens that actually retain their nutritional value. By achieving this goal, non-agricultural nations' dependence on food imports will lessen, which will ultimately result in a reduction in the sector's carbon footprint. By giving people a way to directly support the international movement, the project also aims to support the UN's initiative to achieve the 17 Sustainable Development Goals.

Impact of plant diseases on global food and nutritional security: a strategic theme for Brazil

Plant diseases have a significant impact on global food and nutritional security, and their occurrence has the potential to destabilize economies and create political challenges, as well as affect the health and well-being of populations. Diseases impact the key components of food security (availability, access, utilization, stability), particularly in less developed regions and/or vulnerable populations. The occurrence of plant diseases is exacerbated by factors such as increased global trade, the genetic uniformity of hosts, and climate change, leading to reduced food production, higher prices, and greater dependence on agricultural inputs like pesticides. Brazil, as a major producer and exporter of food, plays a crucial role in global food security. Future prospects for mitigating the negative effects of diseases involve the ongoing pursuit of innovative solutions through investment in research and strengthening global collaboration in disease monitoring and promoting sustainable agricultural practices to tackle this complex challenge.

Firm-level capabilities and response to a negative export shock: 2014 Russian embargo on the West

This paper investigates the resources and capabilities that determine firm-level adjustments after a sudden unexpected closure of a major export market. We focus on the effects of the 2014 Russian embargo on Western food exporters using the example of Estonian firms. The paper applies a novel multimethod approach consisting of Study I quantifying the embargo effect on the trade diversion of firms that had exported embargoed goods to Russia, and Study II conducting a multiple case study into three dairy exporters highly affected by the embargo. Study I employs a difference-in-difference model with matched exporters of embargoed goods as treatment. Study II builds on extensive document analysis that serves as input for interviews with the CEOs of the sample dairy firms. We find that pre-shock productivity is on average a good predictor of post-shock firm trade diversion (Study I), however, we specify that the key firm-level resources and capabilities necessary for successful post-shock adjustments might not be reflected in the standard quantitative productivity level measures (Study II). We conclude that key firm-level resources and capabilities for embargo-resilience are the quality of exporting experience, competitive product-market matching, absorptive capacity, and managerial vision and empowerment.

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The prospects of the food and agro-food sector in the structure of the economic management system are related to global and national trends in the development of agriculture, food industry and effective management of these industries. The growing demand for environmentally friendly products forces companies and farmers to implement sustainable production methods. This includes reducing greenhouse gas emissions, using water and resources efficiently, and moving to organic agriculture. Environmental standards are becoming important in ensuring the competitiveness of products on the domestic and international markets. Automation and digital technologies are rapidly penetrating the agri-food sector. Precision farming technologies, artificial intelligence, drones and satellite systems allow for increased production efficiency, improved resource management and reduced costs.In addition, digital platforms help to optimize supply chains and improve interaction between market participants. There is an increasing focus on food safety due to increased regulation by governments and international organizations. This requires agri-food businesses to invest in quality control systems and meet international standards such as HACCP. The increase in the export of food and agricultural products is an important factor in the economic development of many countries. This requires diversification of sales markets, improvement of logistics infrastructure and adaptation to the requirements of foreign markets.In addition, supporting local producers through government subsidy programs can strengthen the domestic market. The concept of a closed-cycle economy involves minimizing waste and maximizing the use of resources at each stage of production. In the food sector, this may include using waste as raw material for fertilizer or energy production. Small and medium-sized businesses in the agri-food sector can play an important role in ensuring food security and sustainable development of rural areas. Government support programs, access to finance and educational programs can help strengthen this sector. Climate change directly affects the food sector, causing unpredictable weather conditions that can reduce harvests and increase the risk of production losses. Adapting to these changes requires the introduction of new technologies, genetically modified crops, and risk management programs. At the global level, more and more attention is being paid to food security - ensuring a stable food supply. This includes the development of the agro-industrial complex to reduce dependence on imports, increase food reserves, and develop infrastructure for storage and transportation

The Role of Local Wisdom in the Development of Aquaculture: A Qualitative Approach

Aquaculture is an important sector in meeting global food needs and maintaining food security, especially in countries with coastal areas. As the largest archipelagic country, Indonesia has great potential in aquaculture that supports domestic food security and exports. However, the sector faces complex challenges such as climate change and environmental degradation. Sustainable management and integration of local wisdom, such as the "sasi" system, are important solutions in facing this challenge. This study aims to explore the role of local wisdom in supporting sustainable aquaculture through a qualitative approach to case studies. The results of the study show that local wisdom plays an important role in maintaining the balance of the ecosystem and supporting environmental sustainability. The combination of modern technology and traditional practices is an effective strategy to create a resilient and environmentally friendly aquaculture system. This research emphasizes the importance of collaboration between the government and the community in recognizing and strengthening custom-based regulations to achieve a balance between environmental sustainability and economic resilience.

COP27 Perspective of Food, Land Resources and Digitalization for Sustainable Economy: Novel Evidence From Lower‐Middle‐Income Countries

ABSTRACTEconomies in the environmentally conscious era follow the 27th Conference of the Parties' commitments to attaining environmental sustainability. However, using alternative energy sources reduces arable land and diminishes land resources, severely affecting food production, exports, and overall income. This issue raises concerns about attaining a sustainable economy, which has attracted little scholarly attention in the preceding literature. The present research examines the influence of food exports, digitalization, access to clean fuel and technologies for cooking, mineral resources, and oil resources on the economic sustainability of lower‐middle‐income economies. Covering the latest period from 1990 to 2022, this study uses several time series estimators to analyze the aggregate data of selected economies. The empirical results suggest that the mentioned variables are cointegrated in the long run. The regression estimates showed that food exports and mineral resources are adversely associated with economic sustainability. However, access to clean fuel and technologies for cooking and digitalization significantly contributes to the region's economic sustainability. Nonetheless, the role of oil resources is insignificant but negative, which validates the resource curse phenomenon in the region. The results are robust since these estimations are validated by regression accounting for structural breaks. This study recommends investment in clean energy resources, efficient mineral resource management, and the transition to clean energy to accomplish the 27th Conference of the Parties target and attain sustainable development.

Export of agricultural products as a determinant of currency security of Ukrainian economy

Purpose. The purpose of this study is the development of the methodological approach for estimation the impact of agri-food exports on the monetary sphere of Ukraine in order to substantiate the prospective directions of the export potential of agricultural products as the factor in ensuring the currency security of Ukraine. Methodology / approach. The following methods were used: literature review in determining the main trends in the export of agricultural products based on the analysis of publications; economic and statistical analysis to assess the impact of key factors on the formation of the export potential of agricultural products and its impact on exchange rate formation; ARDL modelling, Dickey-Fuller, and Engle-Granger tests to estimate the impact of different factors on exchange rate changes. Results. The paper highlights the immediate and delayed influence of selected factors on the dynamics of the exchange rate in Ukraine, showing that the export of food products and raw materials for their production can significantly strengthen the national currency in the long-run. The continuous growth in food exports contributes to a slower appreciation of the exchange rate, which ultimately leads to a stronger national currency. Therefore, the strategy of focusing on increasing food exports can play a vital role in bolstering the Ukrainian currency in the long-run by exerting a positive influence on the exchange rate dynamics and contributing to the overall economic stability. Originality / scientific novelty. The study contributes to the understanding of the complex interplay between war, food security, and economic stability. The novelty implies the ARDL model of the influence of agricultural exports on the currency and exchange rate sphere of the Ukrainian economy. Additionally, the analysis adds new dimension to the discussion on the strategic importance of the agricultural sector for foreign exchange reserves and currency accumulation. Practical value / implications. The practical value is that understanding the relationship between export volumes, global prices, and exchange rate movements can help in predicting and managing currency fluctuations more effectively. By identifying the time frames for the return of exchange rate shocks to their long-term equilibrium and the impact of various factors on currency valuation, the study aims policy-making processes at ensuring currency security for the state.

Farming Standards as a Catalyst of Green Agriculture and Food Export: Middle Income European countries Case Study

Farming Standards as a Catalyst of Green Agriculture and Food Export: Middle Income European countries Case Study

Organic Farming for Sustainable Agriculture: Future Outlook and Options

Organic products are grown under a system of agriculture without using chemical fertilizers and pesticides, with an environmentally and socially responsible approach, and provide healthy food. It is developing rapidly and is practised in more than 120 countries. In 2022-23, the total area under the organic certification process (registered under the National Programme for Organic Production) is 10.17 million ha. This includes 5.39 million ha of cultivable area and another 4.8 million hectares for wild harvest collection. Madhya Pradesh has covered the most significant area under organic certification. In contrast, India produced around 2.9 million MT of certified organic products, which include all varieties of food products, namely Oil Seeds, fibre, Sugar cane, Cereals and millets, Cotton, Pulses, Aromatic and Medicinal Plants, Tea, Coffee, Fruits, Spices, Dry Fruits, Vegetables, Processed foods etc. The production is not limited to the edible sector; it produces organic cotton fiber, functional food products, etc. Among different states, Madhya Pradesh is the largest producer. In terms of exports, the total value was 0.31 million Mt. The organic food export realisation was around Rs. 5525.18 Crore (708.33 million USD). Products are exported to the USA, European Union, Canada, Great Britain, Switzerland, Turkey, Australia, Ecuador, the Korean Republic, Vietnam, Japan, etc. The objectives of organic farming ensure that food production has high nutritional value in adequate quantities and preserves and enhances the long-term fertility of soils.

Gamma irradiation pilot project: Enhancing food safety and export quality in Indonesia

This study aims to evaluate the feasibility of establishing a gamma irradiator pilot project in Indonesia to reduce food loss and food waste, as well as to enhance the value of export commodities. Gamma irradiators have the potential to extend shelf life, improve food safety, and reduce losses during distribution and storage. The research methodology involves weighting to assess the feasibility of location selection, incorporating secondary data analysis and economic value-added analysis. The results indicate that the PUSPIPTEK Serpong location meets all mandatory criteria and nearly all non-mandatory criteria, making it a suitable site for this pilot project. The operation of the gamma irradiator in Serpong has successfully increased the volume of irradiation services, though its utilization is predominantly for export purposes. The main challenges include a negative public perception of irradiated food and a lack of education on its benefits. This study concludes that gamma irradiators are effective in reducing food loss and food waste, as well as increasing the value-added of export commodities. Strong government support and continuous education programs are necessary to improve public acceptance. Future research could focus on long-term evaluations of the impact of gamma irradiators and the development of more effective educational programs.

Assessing Scotland’s self-sufficiency of major food commodities

BackgroundAnalysis of food self-sufficiency at the regional level helps to better understand its dependency on, and vulnerability to, the food system. Moreover, achieving food self-sufficiency has gained prominence in the present policy agenda to increase resilience to adverse events and lower food resource footprint. Using a novel method, we estimated the food balance sheets of Scotland, the second-largest region in the United Kingdom, and assessed the self-sufficiency of major food commodities for the first time.MethodsData from 2003 to 2019 were obtained from Economic Reports on Scottish Agriculture and the Department for Environment, Food and Rural Affairs (DEFRA)’s family food statistics. Food import and export data are not readily available for Scotland. Therefore, we developed a consumption-based approach to estimate the net trade values of each commodity. We also assessed the contribution of domestic production toward nutrient security.ResultsAccording to our estimates, Scotland is a net exporter of beef, exporting an average of 51.3 thousand tons per year. It is also a net exporter of cereal (wheat, barley, oats) and potatoes, although this was not always the case between 2003 and 2019. Scotland has a strong level of self-sufficiency in cereals, potatoes, lamb, beef, dairy, and eggs. However, there is room for improvement in achieving self-sufficiency in poultry and pork, where the self-sufficiency ratio is relatively low. Our analysis of nutrient security indicates that wheat and dairy sourced from Scotland play crucial roles in the food supply chain, markedly influencing total energy, dietary protein, and primary dietary fat sources.ConclusionsOur assessment can serve as a foundation for evidence-based decision-making in Scotland's agricultural and food policy. It offers insights into where investments and support may be needed to enhance domestic production and promote a resilient and sustainable food system. Estimated self-sufficiency ratios provide a more accurate assessment of the extent of food localization in Scotland. The method we developed in this study has the potential to be a valuable tool for future research studies, allowing for the estimation of regional-level food self-sufficiency even when trade data and food balance sheets are unavailable.

Quality-driven sustainability in Jordan’s food export supply chains

Purpose This paper aims to address the imperative of establishing adaptive sustainable supply chain management (SSCM) within the context of export food supply chains (EFSC) in Jordan, with potential global applicability. The research introduces a new conceptual framework validated through the analytic hierarchy process (AHP), prioritizing critical factors based on five expert opinions. The practical and managerial outcomes emphasize achieving sustainable supply chain performance through quality-driven sustainability (QDS), encapsulated in a practical framework (SSCQM). Employing the concept of QDS, this study aims to develop a novel decision framework for Sustainable Supply Chain Quality Management (SSCQM). Design/methodology/approach Conducted as an empirical qualitative study in Jordan, the research employs a systematic literature review to identify research gaps and establish the initial conceptual framework. A pilot case is subsequently conducted to refine the framework, followed by Case Studies of four Triads, elucidating network relationships between suppliers, manufacturers and customers. A total of 32 semi-structured interviews, complemented by observations, tours and document analysis, individually explored each case during the exploratory stage. Cross-analysis of the four cases at the explanatory stage provides empirical insights, and data triangulation, literature review and validation using NVivo enhance the robustness of the findings. Findings The amalgamation of the three perspectives, when treated individually, results in the integrated category of QDS influencing sustainability (SUST) performance, evident in economic, environmental and social dimensions. Various sustainable initiatives have emerged through the relationships within the Triad, comprising a company, supplier and customer in the supply chain and its broader environment, including society, aiming for enhanced sustainable development and SUST performance. Recognizing the urgency of Supply Chain Management (SCM) in the Middle East, where global supply chains are susceptible to disruptions leading to food shortages and insecurity, this research investigates the state of EFSC in the export food industry in Jordan. The novel decision (SSCQM) framework equips managers and policymakers with knowledge and practices applicable to focal actors in Triads within their EFSCs, particularly in developing countries, thereby contributing to enhancing the export food industry’s sustainability. Research limitations/implications This research provides empirical and contextual justifications for the supply chain-quality model (SSCQM) that advocates for business organizations how a desirable, sizeable and significant outcome/shock can be triggered via embedding quality elements in an international supply chain specifically in Jordan. The research also offers significant implications for practising supply chain experts in terms of how they can effectively utilize the supply chain quality to align other players in the supply chain, revenue potential, customer retainability and employee retention to achieve superior organizational performance. The research selectively encompasses three key perspectives of supply chain networks (SCN), total quality management (TQM) and SUST to elucidate the essence of SCM. Originality/value This research contributes towards filling the gap as a lack of empirical research.

ASSESSMENT AND CURRENT TRENDS OF ENSURING FOOD SECURITY IN UKRAINE

The research on Ukraine's food security is of paramount importance, as it directly impacts the national agro-food systems. The article delves into the current state of internal food self-sufficiency in the Ukrainian population, conducting an analytical assessment of export-import transactions with agricultural raw materials and food products. The findings reveal a significant trend of increasing food exports in recent years, along with an evaluation of the export-import coverage for the main types of food products. Ukraine's place in the world rating of food security based on the Global Food Security Index was studied. The fundamental problems and reasons that determined Ukraine's decrease in the rating positions and the level of food security of its population were identified. In addition to the military conflict, Ukraine has a low economic availability of food products for the population and a low level of sustainability in the domestic agro-food system. Despite the war's consequences, the agricultural business remains one of the most profitable economic activities in Ukraine. This analysis of individual indicators of the effectiveness of the country's agrarian sector as a basis for ensuring food security underscores the sector's potential. The modern production structure of the main types of agricultural products by categories of producers was studied. The key trends accompanying ensuring food security in Ukraine under modern conditions are summarized. It was revealed that food security in the crop sector is achieved at the expense of the public sector agrarian formations, mainly at the expense of households in the livestock sector. Based on the average values ​​of the actual consumption indicators, the state of providing the population with the main types of food was analyzed. The results showed problematic aspects in providing the country's population with meat and dairy products, fish, fruits, berries, and grapes. The priority directions for ensuring and strengthening food security on a national scale are substantiated. Among the main ones, the following are highlighted: the need to implement sustainable farming and animal husbandry practices, further improvement of the food quality management and control system, protection of biodiversity of ecological agrosystems, optimization and reduction of value chains, increasing the level of social responsibility of food producers and consumers.

Обеспечение экономической безопасности российского агропромышленного комплекса на основе диверсификации структуры экспортных поставок продовольствия

the article presents the results of a study of the processes of ensuring economic security of the Russian agro-industrial complex based on diversification of the structure of food export supplies. The statistics of income from exports of agricultural products of the countries of the world are analyzed. An analysis of the structure of US agro-industrial exports by type of product was carried out. The parameters of the world market for rapeseed and its processed products have been determined.

Does the Exchange Rate Have a Pass-Through Effect on Domestic Food Prices in Türkiye? An Empirical Study Using a Combined ANN Algorithm and VAR Method

Exchange rate fluctuations have far-reaching consequences for national economies, companies and, above all, consumers. It is therefore important to understand the mechanisms by which these fluctuations affect food prices in domestic markets. In this context, we examine the complex relationship between exchange rates and domestic food prices and attempt to calculate the pass-through effect of the exchange rate on domestic prices. To examine the pass-through effect of the exchange rate on food prices, we use monthly USD/TRY exchange rate data from January 2003 to July 2023 as well as the global food price index, the export-import rate for food and the producer price index for food in Türkiye. We employ the vector autoregression (VAR) method to determine the optimal lags of the variables included in the analysis and the artificial neural network (ANN) algorithm to calculate the overall pass-through effect of the USD/TRY exchange rate on domestic food prices. The results show that the pass-through effect of the variable on food prices persists for three months: the current month, the previous month and the two previous months. The total pass-through effect of the exchange rate on food prices reaches up to 27%. Half of this impact comes from the previous month's food prices. In addition, the ratio of food exports to imports accounts for about 12% of the increase in domestic food prices. The results also show that the variable with the highest pass-through effect is the producer price index and that 90% of the increase in food prices is due to domestic dynamics, while the effect of price increases in foreign markets is only about 10%.

Comparative Advantage of Trade in Food Products among the Selected East African Community Partner States: Implication for Policy Formulation

Despite the potential benefits of regional trade, economic disparities among East African Community (EAC) member states persist. This study investigated the relationship between trade openness, comparative advantage in food trade, and economic performance within the EAC, focusing on Tanzania, Kenya, and Uganda. The study adopted export data from the United Nations Commodity Trade Statistics Database, the World Bank, and the International Trade Centre, as well as GDP data from the Bank of Tanzania and the National Bureau of Statistics. Data were analysed through descriptive statistics, causality analysis, Revealed Comparative Advantage (RCA), and vector autoregressive model. Findings reveal a positive impact of trade openness on Tanzania’s economy but negative impacts on Kenya and Uganda, suggesting Tanzania benefits from EAC integration while Kenya and Uganda face trade challenges. The causality analysis shows that Tanzania’s economic performance drives food exports, trade openness impacts Kenya’s economic performance significantly, and Uganda sees a reciprocal link between economic growth and food exports; however, trade openness does not significantly affect Ugandan economic growth. The analysis of the Balassa index indicates Kenya’s food export advantage, a decline in Uganda’s export advantage since 1996, and Tanzania’s lack of export advantage with potential for improvement. The study recommends cautiously implementing trade openness policies within the EAC to prevent trade distortions and currency devaluation.

Gravity model of trade approach: what drives Indonesia’s seafood export and its halal market potency in OIC (Organization of Islamic Cooperation) countries

PurposeThis study aims to unveil the variables that drive Indonesia’s seafood exports to organization of Islamic cooperation (OIC) countries, including a deeper analysis to understand the factors that affect Indonesia’s potential for halal seafood exports, and attempts to validate Linder’s hypothesis, which might occur as part of the determinants of Indonesia’s seafood exports, as well as one of the variables that can affect Indonesia’s potency of halal seafood exports based on economic scale similarities and relative factor endowments.Design/methodology/approachUsing Poisson regression by pseudo maximum likelihood, this study applies the theory of trade gravity and Linder’s hypothesis of Indonesia’s seafood exports to OIC countries and its halal market potency over the 30 years observation period from 1992 to 2021, with 47 countries importing Indonesia’s seafood products during the observation period based on United Nations Comtrade statistics.FindingsThe variables that drive Indonesia’s seafood exports are the situation of the economy between Indonesia and its trading partners, the population of importing countries and the common understanding of language. On the other hand, the adjusted-Muslim GDP of importing countries, the adjusted-Muslim GDP of Indonesia and the number of Muslim inhabitants of importer countries are the factors that affect Indonesia’s potential for halal seafood exports. The study also validates the presence of Linder’s hypothesis in Indonesia’s seafood export and could hint Indonesia’s potential for halal seafood exportsResearch limitations/implicationsOwing to the absence of an Harmonized System code that explicitly accommodates trade in halal commodities, especially in halal seafood exports, it will be more accurate if data are available in the future as material for further studies. Future studies may also consider per capita consumption of seafood, food safety standards and the level of food security from OIC countries as variables that might also influence Indonesia’s seafood exports in an approach analysis using the gravity theory of trade.Practical implicationsThis study is part of the authors’ efforts to encourage a greater contribution of the fisheries sector to Indonesia’s GDP by identifying the factors that drive seafood exports, which have so far only been around 2%–3% and have never reached more than 4% in the past two decades. While Indonesia is blessed with extraordinary marine biodiversity and hopes of being the leader of the halal food industry, the fisheries sector is expected to contribute.Originality/valueUnlike previous studies that used the approach of the gravity model of trade on food exports, this study is specifically in the field of seafood exports, takes Indonesia as the main object of research and also examines Linder’s hypothesis as part of the analysis to identify what drives Indonesia’s seafood exports in the OIC countries market and fill the scant of studies highlighting the factors that could drive halal food exports, specifically in seafood.

Финансовый потенциал аграрного бизнеса Республики Беларусь в торговле с Российской Федерацией

The purpose of the article is to use the resulting approach to measure the financial potential of agricultural businesses in the Republic of Belarus. The study analyzed the share of food products in foreign trade, food products exports, the production capacity of food products industrial organizations, and the share of food products exports in the total volume of their production. The study defined that the production capacity of food industrial organizations in the regions bordering the Russian Federation (Vitebsk region, Mogilev region, Gomel region) for food products is not fully used. There is potential to increase food production and export it to the Russian Federation. The financial potential for increasing production and export of food products in the regions has been calculated with the resulting approach. The estimated financial potential for increasing meat exports by increasing the level of food production capacity is 218.92 million USD in the Vitebsk region, 312.52 USD million in the Gomel region, and 128.44 USD million in the Mogilev region. Active trade relations between the Republic of Belarus and the Russian Federation laid the foundations for integration and development in the agricultural sector. The following suggestions for realization of financial potential in the regions are outlined and characterized: cooperation of agricultural business entities in the regions in various forms; regional diversification and integration of regional agricultural business entities; production cooperation of regions within the framework of foreign trade of agricultural products and food among EAEU member states and with third countries.

The Agricultural Sector and its Impact on Economic Growth in Algeria

This study came to shed light on the agricultural sector and how it can contribute, as a basic sector, to achieving economic growth rates and the extent of its response to the most important reforms and various forms of support provided to it, this study relied on a methodology based on combining quantitative and qualitative analysis in dealing with relevant data and statistics. In the agricultural sector, Algeria to achieve this methodology, the descriptive approach was adopted in this study, which concerned itself with describing the importance of the agricultural sector and its role in achieving economic growth, in addition to the most important measures taken towards it, while presenting a set of statistics, analyzing and interpreting them statistically, and searching for ways to develop this sector, and then carrying out With a standard study, it dealt with the search for the most important variables affecting agricultural production on the one hand and the impact of the elements of agricultural production on the elements of economic growth on the other hand. The study showed that the sector is still subject to climate change and the labor force’s aversion to it, In addition, there is a lack of a clear administrative system in this sector, we recorded the large difference in the volume of food and agricultural imports and food and agricultural exports, For example, the coverage rate of food exports for food imports did not exceed 6.2% during the study period.

Assessing the Implications of the Red Sea Conflict on the Indian Supply Chain: A Comprehensive Analysis

The Red Sea, a vital trading route for India, is disrupted by the ongoing conflict between the Houthi rebels and Israel. This study aims to investigate how the dispute affects India’s supply chain in several different industries. The possible repercussions include restricted access to raw materials, delays and higher prices in maritime transportation, and concerns of energy scrutiny from disruptions in gas and oil. To lessen the impact on the economy we examine alternate trade routes and assess the potential effects on investors’ confidence. This study aims to examine and assess the diverse repercussions of the Red Sea War on the Indian supply chain offering insights on strategic planning, policy decisions and risk mitigation measures for the Indian government, businesses and stakeholders. The Red Sea crisis has had a multifaceted impact on different sectors of the Indian economy. In the healthcare sector, a huge number of medical supplies and prescription drugs which are transported via sea have seen a spike in the shipping cost due to rerouting which has disrupted the medical supply chain. On the other hand, there is no direct impact on the consumer sector; however, the increased freight prices and geopolitical concerns impact the wholesale price index which is expected to hike and influence the food grain prices and exports of basmati rice in particular owing to the well-established domestic supply chain. The FMCG industry is comparatively protected from the adverse effects of the crisis in contrast to industries such as agricultural and maritime foods. This crucial route, particularly affecting goods moving between Europe, North Africa, and the Middle East, historically used for nearly half of India's exports and a third of imports, is now deemed unsafe. Ships are being rerouted around Africa's Cape of Good Hope, leading to a 30% increase in transit times and a surge in shipping costs. Indian companies are feeling the heat – Arvind Ltd. faces lost revenue due to order backlogs, while exporters like Euro Fruits grapple with quadrupled freight costs and declining grape quality. The auto industry is also impacted, with companies like MG Motor India experiencing delays and rising logistics expenses. India’s energy, resources and industrial sectors have all been severely disrupted by the Red Sea crisis with critical exports including chemicals and petroleum products being heavily impacted. Since the Suez Canal handles a significant amount of India’s import of crude oil, rerouting owing to continual conflicts presents logistical difficulties and possible inflationary pressures. The government is actively engaging in efforts to mitigate these impacts by looking into alternative shipping lanes and providing assistance to affected exports. The possibility of delays and financial costs is still a major issue for businesses navigating obstacles relating to insurance premiums and logistical difficulties. To navigate these challenges, the Indian government is exploring a multi-pronged approach. Financial support in the form of direct subsidies, soft loans, and government-backed cargo insurance could help businesses offset increased costs and mitigate risks associated with delays and rerouting. Additionally, India is looking to diversify its trade routes by exploring alternative sources for crude oil and LNG imports, along with utilizing ports outside the conflict zone. Long-term solutions are also being considered, such as investing in the Northern Sea Route and expanding land transport infrastructure. Renewed focus on the India-Middle East-Europe Economic Corridor (IMEC) project could offer a comprehensive network connecting India, the Middle East, and Europe. By implementing these strategies, India can build a more resilient supply chain and minimize the long-term impact of the Red Sea conflict on its trade.