Economic Survey 2025-26: ‘Frequent policy changes at export front disrupt supply chains; markets once lost hard to regain’

Trade policy on agricultural exports is used to meet short-term targets amid price and production fluctuations, but frequent policy changes disrupt supply chains, create uncertainty, push foreign buyers elsewhere and make it difficult to regain lost export markets, the Economic Survey said on Thursday, January 29, 2026.

Agricultural exports are affected by a number of supply-side factors, including food security, processing facilities, infrastructure bottlenecks and various regulations, it said.

Economic Survey 2025-26 LIVE updates – 29 January 2026

However, given the volatility in domestic prices and production of certain commodities, trade policy is often used to achieve short-term domestic objectives such as managing inflation through product-specific interventions, including temporary export bans or the imposition of minimum export prices.

Although these measures are said to be able to temporarily stabilize domestic prices, they risk reputational damage in the long term, especially since India is considered a source of high-quality agricultural products.

“Frequent policy changes can significantly disrupt export supply chains, create market uncertainty and cause foreign buyers to turn to other sources. Once lost, export markets are not easy to recover,” the statement added.

According to estimates, the country has a potential of $100 billion in combined exports of agriculture, seafood and food and beverages in the next four years.

Available policy options

Measures such as subsidized distribution of essential foodstuffs through the public distribution system, managing buffer stocks and intervening in the market through an open market sales scheme are policy options available to ensure the availability of agricultural products at fair prices in the domestic market, the survey said.

The 2025-26 Survey added that it is possible to stabilize domestic availability and prices while enabling farmers to tap global markets to earn better incomes.

He noted that by striking a delicate balance between meeting domestic demand and exploiting its export potential, India’s remarkable achievements in agricultural production can translate into export-led growth and enable the country to achieve its target of $100 billion in agricultural exports.

“Exports also encourage know-how and market feedback, making farmers more productive and competitive,” he said.

He also said that India, as a desirable economy, will see its imports increase steadily and this has been a global experience for centuries.

“India should explore all opportunities to increase export revenues to meet the import needs of a growing economy. Agricultural exports are a low-hanging fruit with immense export potential.” he said, adding that these carry international leverage for India and policies must be in line with this imperative.