PHILIPPINES
Agriculture Trade Between India and the Philippines: A Growing Opportunity with a Focus on Peanut Exports
India and the Philippines have witnessed significant growth in agriculture trade in recent years, driven by mutual interests in food security, raw material exchange, and economic cooperation. Among the various commodities traded, peanuts have emerged as a potential product of focus due to rising demand in the Philippines for both edible consumption and industrial processing.
India-Philippines Agriculture Trade: An Overview
The bilateral trade between India and the Philippines has expanded steadily, especially in the agro-sector. India, known for its diverse agro-climatic zones and agricultural expertise, exports a wide range of products such as:
Key Agricultural Exports from India to Philippines
- Rice
- Spices
- Pulses
- Fruits & vegetables
- Groundnuts (peanuts)
Key Agricultural Imports by India from Philippines
- Banana
- Coconut oil
- Mangoes
- Marine products
Growth Trends in Agricultural Trade
According to trade data:
- India's agricultural exports to the Philippines crossed USD 350 million in 2023.
- Agri-imports from the Philippines to India totaled around USD 150 million, showing an increasing trade surplus in India's favor.
- The trade is projected to grow at a CAGR of 8-10% over the next five years, fueled by regional trade cooperation and agricultural demand in ASEAN.
The Rising Peanut Trade Between India and the Philippines
Why Peanuts?
Peanuts, also known as groundnuts, are an essential part of the Philippine diet and food processing industry. The rising consumption of peanut butter, peanut oil, roasted snacks, confectionery products, and livestock feed has created a gap between local supply and demand.
India, being one of the largest producers and exporters of peanuts, is strategically positioned to fill this demand gap.
Peanut Export from India to the Philippines: A Snapshot
- In 2023, India exported approximately 15,000 metric tons of raw peanuts to the Philippines, valued at over USD 18 million.
- The volume has grown by 20% year-on-year, driven by competitive pricing and consistent quality.
- Indian exporters offer peanuts, which are suitable for various uses in the Philippine market.
Varieties and Types of Peanuts Exported from India
India grows several peanut varieties ideal for different industrial and edible applications. The main types exported to the Philippines include:
1. Bold Peanuts
- Larger kernels with a reddish-brown skin
- Popular for oil extraction and direct edible use
2. Java Peanuts
- Rounder and smaller in size
- Used for confectionery, candies, and snacks
3. Redskin Peanuts
- Known for high oil content and strong flavor
- Preferred for traditional Filipino snacks and roasted mixes
Why Indian Peanuts Are in Demand in the Philippines
- Competitive Pricing: India offers peanuts at affordable prices due to large-scale production.
- Reliable Supply: Major peanut-producing states like Gujarat, Rajasthan, and Andhra Pradesh ensure year-round availability.
- Quality Standards: Indian exporters follow APEDA and FSSAI guidelines, ensuring food safety and phytosanitary compliance.
- Customized Packaging: Vacuum packaging, jute bags, and PP bags available in 25 kg / 50 kg sizes for bulk buyers.
Future Prospects: Strengthening the Agri Trade Ties
With the Philippines aiming to diversify its food imports and India enhancing its agro-export capabilities, there's immense potential in:
- Signing bilateral trade agreements focused on agricultural goods
- Participating in trade fairs and B2B matchmaking for peanut and agro product buyers
- Investing in warehousing and processing units in the Philippines for better supply chain efficiency
Final Thoughts
The agriculture trade between India and the Philippines is poised for remarkable growth, with peanuts leading the charge as a high-potential commodity. With India's expertise in peanut cultivation and the Philippines' growing demand in food processing and retail sectors, the synergy is clear.
For Indian exporters, this is the right time to tap into the expanding Filipino peanut market by offering quality, variety, and competitive pricing. For Philippine buyers, sourcing from India ensures consistent supply and value.