Ghee Exports Soar: Indian Ghee exports to the EU see a record rise, with government exploring new trade routes

NEW DELHI, India – In a significant boost to the country’s agricultural sector, India’s ghee exports to the European Union have seen a record-breaking surge, with volumes and value reaching an all-time high. This unprecedented rise has prompted the government to double down on its strategy to explore new, more efficient trade routes to sustain and expand this momentum, solidifying India’s position as a global leader in high-quality agricultural exports.

The surge in demand for Indian ghee is attributed to a growing European consumer interest in authentic, clean-label, and traditional food products. Ghee, long a staple in Indian households, is gaining traction among health-conscious consumers in Europe who value its rich flavor, nutritional benefits, and its status as a healthier alternative to conventional butter. This trend aligns perfectly with India’s push for high-value agricultural exports under the “Make in India” initiative.

The New Trade Route Strategy

To capitalize on this record growth and mitigate risks associated with traditional shipping lanes, the government is actively exploring a new trade route strategy. A key focus is on the India-Middle East-Europe Economic Corridor (IMEC). This ambitious project, once fully operational, promises to significantly reduce transit times and costs, making Indian agricultural exports to the European market more competitive and reliable.

Furthermore, the government is engaged in bilateral talks with several countries to establish new sea and land routes, which would provide alternative paths for exports. This diversification of trade routes is a strategic move to ensure that Indian exports are not vulnerable to geopolitical disruptions or bottlenecks in a single corridor. This policy is a direct result of India's multi-aligned foreign policy, which seeks to build resilience by forging partnerships across the globe.

Implications for Farmers and the Economy

The record rise in ghee exports is a welcome development for Indian farmers and dairy producers. The increase in demand and better prices are expected to boost rural incomes, leading to a more prosperous agricultural sector. Experts predict that if the current export trend is sustained, it will contribute significantly to India's overall economic growth and help the country achieve its ambitious export targets. The government’s proactive approach to identifying new markets and securing reliable trade routes is a clear signal of its commitment to empowering Indian farmers and transforming the country into a major global supplier of value-added agricultural products.