Effect of climate change on trade

Effects of Climate Change on Global Agri Demand

Climate change is drastically reshaping global agricultural demand. As unpredictable weather patterns affect crop yields across continents, countries increasingly rely on imports to ensure food security. This shift presents a major opportunity for Indian agri-exporters.

Droughts in Africa, floods in Southeast Asia, and heatwaves in Europe are causing severe disruptions in local farming. These events reduce harvest volumes and create surges in demand for staples, pulses, and spices—segments where India has a comparative advantage.

For example, rice and lentil imports have increased in many nations facing production instability. Indian exporters who can deliver high-quality, pesticide-compliant produce quickly stand to gain.

At the same time, climate change is affecting India as well—monsoon unpredictability and water shortages impact farming timelines. Exporters must plan carefully and coordinate with suppliers to ensure consistent supply and avoid delays.

Adopting climate-resilient crops, investing in cold chain logistics, and utilizing weather forecasting tools can help exporters align with global market shifts. Exporters who highlight sustainability and climate adaptation in their marketing also gain credibility with eco-conscious buyers.