How ports must evolve to ferry India’s agri export ambition

FARM TO FOREX: Ports handle 80 per cent of India’s agri exports
| Photo Credit:
AMIT DAVE

Indian fruits, vegetables, spices, cereals, processed foods, meat and marine products reach markets across Asia, Europe, West Asia, and North America. However, persistent port-related inefficiencies weaken the country’s export competitiveness and erode value for farmers, processors and allied industries.

After all, only 10-20 per cent of India’s agri export is sent as air cargo; more than 80 per cent goes through its ports. If India is to widen its global agricultural footprint and enable the sector to contribute meaningfully to achieve its targeted $5 trillion economy, ports must evolve into fully efficient, technology-enabled and future-ready trade gateways.

The hidden export tax

Field assessments at ports such as Visakhapatnam, Kandla, JNPT and JSW highlight recurring challenges that function as a hidden export tax. Cargo contamination — arising from outdated handling practices, inadequate fumigation and weak quality control — continues to undermine India’s credibility in quality-sensitive markets. Perishables, especially horticultural produce, face heightened spoilage risk due to prolonged berthing delays and the absence of dedicated agri-berths.

The warehousing deficit compounds these constraints. Many ports depend on storage facilities that are located more than 15 km from their terminals, inflating first-mile costs and extending transit time. Cold chain capacities remain inadequate, while warehouse rentals are often uncompetitive for agri exporters.

At Visakhapatnam, handling charges are higher than in neighbouring ports such as Kakinada and Gangavaram. The prolonged shortage of rake-siding labour and surveyors during extended operations has led to demurrage penalties and operational delays.

Ports such as Visakhapatnam and JSW enjoy proximity to some of India’s most productive agricultural belts. Andhra Pradesh, Maharashtra, Karnataka and Tamil Nadu collectively supply rice, banana, onion, spices, grapes, mango, marine products and processed foods — commodities with a strong and expanding global demand.

Simultaneously, India’s growing import needs — raw cashew, pulses, edible oils, cocoa products and natural rubber — require ports that can efficiently handle two-way agricultural trade flows. With the right investments in infrastructure modernisation, cold chain systems and seamless hinterland connectivity, ports can serve as the bedrock of a resilient and high-value agricultural export ecosystem.

Port system reforms

Transforming ports into globally competitive agri-trade gateways requires a targeted reform agenda:

Cold chain and post-harvest systems: Investments in pre-cooling, irradiation, hot-water treatment and temperature-controlled storage can cut post-harvest losses by 30–40 per cent.

Targeted financial support: Infrastructure grants under the Agricultural and Processed Food Products Export Development Authority (APEDA), the National Horticulture Board and PM Kisan Sampada Yojana can accelerate the development of modern export facilities.

Regulatory co-location: Agencies such as Plant Quarantine, Food Safety and Standards Authority of India (FSSAI), National Plant Protection Organisation (NPPO), and customs must operate within port premises to reduce procedural delays.

Decongestion solutions: JNPA’s dedicated parking plaza and traffic-flow management model should be replicated across other ports.

Integrated processing hubs: JNPA’s use of public-private partnerships in agricultural processing and storage offers a scalable blueprint for value-added export clusters.

Freight transparency: Publishing route-wise freight benchmarks and ensuring availability of reefer containers can reduce logistics volatility.

Inland container depots and green corridors: The Sagarmala-supported Jalna dry port demonstrates how inland logistics can be streamlined to reduce costs and transit time.

With sustained reforms, India can strengthen its global trade position and deliver substantial gains to farmers, exporters and the broader economy.

(The writer is an agricultural economist)

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Published on November 17, 2025