Quality Over Quantity
Tamil Nadu has the distinction of being a frontrunner in exports, in electronics, textiles, leather, and automobiles. Simultaneously, the state has witnessed shrinking agricultural lands and increasing urbanisation, which has exerted stress on its agricultural exports.
The area under horticultural crop cultivation such as vegetables, fruits, spices, aromatic crops, medicinal crops, flowers and plantation in the state is 16 lakh hectares contributing a total production of about 235 lakh tonnes. In the food grains segment, production of 130 lakh tonnes comprising rice, millets and pulses is targeted for the current financial year.
In exports, the state's share remained less than 5% over seven years, though it rose to the 7th position in 2024-25 from 9th in 2022-23.
During 2024-25, TN recorded $1.5 bn exports in the agriculture sector, as per data available with the NIRYAT portal of the Union ministry of commerce and industry. While Madhya Pradesh was just ahead at $1.7 billion, Karnataka stood fifth with an export value of $2.2 billion in the last fiscal (FY25).
While Tamil Nadu might not be in a position to compete with states such as Maharashtra, Gujarat and Andhra Pradesh in the quantum of agricultural exports, it has unique, high-quality GI-tagged agricultural produce.
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The state has several unique agri, horti and floricultural offerings that can cater to the growing global demand, including turmeric, banana, tea, mangoes, jasmine, among others. Turmeric is among the most sought-after spices across the world, and TN is the third largest producer of the commodity in India. Popular for its utility in the manufacturing of curry powder, turmeric is well known for its medicinal value too.
However, just 15% turmeric is exported from its hub in Erode that holds GI tag for Erode Manjal (Erode Turmeric).
S Chandramohan, director and group president finance, TAFE, and past chairman of CII Tamil Nadu, says there is a potential for value addition. 'Turmeric is used in Germany for various applications such as promoting skin health, supporting the immune system, aiding digestion and promoting general health.'
He adds, 'Stakeholders in the agro space could consider tie-ups with enterprises specialising in Ayurvedic solutions.
Adhering to quality control and communicating regional requirements to the farmers to ensure compliance will go a long way,' he said. It's noteworthy that Tamil Nadu is the largest producer of bananas in India. About 30 varieties are grown in more than one lakh hectares across 12 districts mostly concentrated in Trichy, Theni, Tuticorin, Pudukkottai and Coimbatore.
Manikutty Subramanian, director of Trichy-based TN Banana Producer Company says hardly 5% of banana from the state is exported. 'We are mainly exporting the G9 variety of banana due to its low price. Of late, our native varieties such as Nendran and red banana are also seeing an interest among consumers in UAE and Saudi Arabia. Nendran is also exported in the form of dry banana, a ready to eat value added product with a shelf life of three to six months.
We are urging farmers to tap the global market as it will double their income through foreign exchange. We believe that banana exports can move up to 20% over the years if there is special focus on increasing exports,' he added.
Tamil Nadu must focus on creating value-added products, inspire local entrepreneurs to build homegrown premium brands, launch Tamil Nadu agri-products on global e-commerce platforms, promote them in airports, trade fairs, and food expos.
Anil Kumar SG, founder and CEO of Chennai-headquartered agri-value chain enabler, Samunnati says, 'Imagine Tirunelveli or Theni mango juice in sustainable glass bottles, Pollachi coconut bites sold in airport lounges, or Nilgiris tea-infused chocolates/pastries crafted for global connoisseurs.
There should be partnerships with global brands to enter new markets,' he said.
A category yet to be well-tapped in exports is flowers. TN is the largest producer of flowers in India, with a share of 20%, produces about five lakh tonnes of flowers per annum. Of this, cut roses are exported to Europe and east Asian countries, while jasmine is flown to the Middle East and UK. R Murthy, president of Flower Growers Association of TN says. 'A floriculture park must be established at Kodaikanal on the lines of industrial parks for food and other manufacturing sectors.
This park will be a game changer in exports because flowers can be processed and packed depending on the requirements of various countries,' he adds.
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