INDONESIA
Agriculture Trade Between India and Indonesia: A Growing Opportunity with a Focus on Peanut Trade
Agricultural trade plays a vital role in the economic and diplomatic relations between India and Indonesia, two of Asia's most populous and agriculturally rich nations. Over the years, both countries have developed robust trading relationships across a variety of sectors, with agriculture emerging as a significant area of collaboration and mutual interest.
Overview of India-Indonesia Agricultural Trade
India and Indonesia enjoy strong bilateral trade ties, with agricultural products being an essential part of this exchange. Indonesia is a major importer of Indian agricultural commodities like rice, wheat, sugar, spices, cotton, and peanuts, while India imports palm oil, coffee, cocoa, and tropical fruits from Indonesia.
Key Agricultural Exports from India to Indonesia:
- Rice (especially basmati and non-basmati)
- Sugar
- Groundnuts (peanuts)
- Spices (chili, turmeric, cumin)
- Cotton
Key Agricultural Imports from Indonesia to India:
- Crude palm oil and derivatives
- Cocoa and cocoa-based products
- Coffee
- Processed food ingredients (oleoresins, etc.)
Spotlight: Peanut Trade Between India and Indonesia
Importance of Peanut Trade
Peanuts (groundnuts) are a high-demand crop in both nations, used extensively in edible oil production, confectionery, snack food, cosmetics, and animal feed. India is the second-largest producer of peanuts in the world, while Indonesia is a growing importer due to its rising domestic consumption and limited local production.
Indian Peanut Exports to Indonesia
India exports a considerable quantity of peanuts to Indonesia annually. According to APEDA and trade sources:
- In FY 2023–24, India exported over 85,000 metric tonnes of peanuts to Indonesia.
- The trade value of peanut exports to Indonesia reached USD 75 million, growing at an annual rate of over 10% in the past 3 years.
- Major exporting states from India include Gujarat, Andhra Pradesh, Tamil Nadu, and Rajasthan.
Why Indonesian Buyers Prefer Indian Peanuts
Competitive pricing
High oil content
Low aflatoxin levels due to improved post-harvest processing
Availability of different peanut varieties
Year-round supply capability
Varieties and Types of Indian Peanuts
India grows several varieties of peanuts, each suited for different applications:
1. Bold Peanuts (Runner Type)
- Size: Large kernels
- Usage: Oil extraction, snacks, roasting
- Key Growing Regions: Gujarat, Rajasthan
2. Java Peanuts (Spanish Type)
- Size: Smaller kernels
- Usage: Confectionery, peanut butter, and snacks
- Key Growing Regions: Andhra Pradesh, Tamil Nadu
3. Red Skin Peanuts
- Usage: Peanut butter, roasted snacks
- Rich flavor, popular in niche markets
4. TJ (Treated Java) Peanuts
- Processed for uniformity, size sorting
- Often preferred for direct human consumption
Growth in Trade and Future Prospects
The agricultural trade, especially peanut exports, between India and Indonesia has shown impressive growth due to:
Bilateral trade agreements under ASEAN-India FTA
Growing demand for Indian agri-products in Indonesia's processed food and edible oil sectors
Improved logistics and reduced shipping costs
Future Opportunities:
Indonesia's peanut processing and snack industries are booming, offering continued opportunities for Indian exporters.
India can explore the export of value-added peanut products like peanut butter, roasted peanuts, and defatted peanut flour.
Joint ventures in agro-processing and supply chain partnerships can further deepen ties.