The analysis of India’s GA trade from 1996-97 to 2024-25 reveals a complex and dynamic narrative (Fig 1 and 2). It paints a picture of a nation that is a significant and growing net importer of raw gum arabic, reliant on the African “gum belt,” while simultaneously developing a volatile but increasingly valuable export sector for processed or re-exported products. This section delves into the trends, growth patterns, inherent instabilities and trading partnerships that define this unique agricultural commodity market.
Trend in gum arabic export
The trajectory of India’s GA exports is best described as episodic and highly volatile, characterized by dramatic boom-and-bust cycles rather than a steady progression. This volatility is evident in both the quantity exported and the value derived from it (Fig 1).
The initial decade of the data (1996-97 to 2005-06) was a period of low-volume instability. Exports fluctuated wildly, from a mere 26.72 tons in 1997-98 to a peak of 240.52 tons in 2001-02. This phase suggests an immature export market, potentially responsive to isolated international orders rather than sustained demand. The unit value during this time also varied significantly, ranging from Rs. 520.53 to Rs. 2,265.76 per 10 kg, indicating a lack of price standardization and possibly the export of different grades.
A shift occurred from 2008-09 onwards, marking a phase of volume surge to 1,592.04 tons in 2008-09. It reached a peak of 5,450.32 tons in 2016-17. However, this surge presents a paradox. The total export value did not increase proportionally with the volume. For instance, in the peak volume year of 2016-17, the unit value plummeted to Rs. 522.62 per 10 kg, one of the lowest in the entire dataset. This inverse relationship suggests that this boom may have been driven by the export of lower-grade GA or that Indian exporters were leveraging competitive pricing to capture market share, sacrificing unit value for volume.
The recent period, (2021-22 to 2024-25), indicates a potential strategic pivot towards value-driven exports. While volumes have increased remarkably from 1,225.28 to 2,891.78 tons, the most impressive growth is in value. The total export value has more than quadrupled from Rs. 1,694.26 lakhs to Rs. 7,948 lakhs and the unit value increased to Rs. 2,748.48 per 10 kg. This suggests a possible move towards exporting higher-value, processed, or specialized grades of GA that command premium prices on the global market. This trend, if sustained, could significantly enhance the profitability and stability of India’s GA export industry.
Trend in import of gum arabic
In stark contrast to the erratic export pattern, India’s import trend for GA tells a story of consistent, massive and growing dependency on foreign sources to meet its domestic industrial demand (Fig 2). The scale of imports dwarfs exports, typically by an order of magnitude.
The data reveals a steady upward trajectory in import volume. Starting from 12,921.43 tons in 1996-97, imports have generally climbed, with periods of accelerated growth, particularly between 2005-06 and 2016-17, where volumes exceeded 30,000 and even 46,000 tons. The projected figure for 2024-25 is 44,128.64 tons. This consistent growth is a direct indicator of the expanding industrial base within India-in sectors like food and beverages, pharmaceuticals, printing and cosmetics-that relies on gum arabic as a critical emulsifier, stabilizer and binder.
The most alarming trend within the import data is the exponential rise in cost. The unit value of imports (Rs. per tons) increased from Rs. 16,907.88 in 1996-97 to Rs. 1,10,052.57 in 2024-25. This represents an increase of over 650% in nearly three decades. Consequently, India’s import bill has ballooned, reaching a projected Rs. 48,564 lakhs in 2024-25. This soaring cost imposes significant financial pressure on downstream industries within India and negatively impacts the national trade balance for this commodity. Factors behind this rise likely include global inflation, increased international demand, supply chain disruptions and possibly a shift towards importing higher-grade varieties.
Growth in export and import
Analyzing the compound annual growth rates (CAGR) across different periods provides a nuanced understanding of the momentum behind these trade flows, revealing the underlying volatility of exports and the robust, costly growth of imports.
The export growth narrative is one of extreme highs and lows (Table 1). The overall CAGR from 1997-2024 is positive and strong for quantity (16.15% per annum) and value (18.14% per annum). However, this overall figure masks severe period-wise volatility. For example, the period 2006-2010 saw an explosive growth of 113.53% per annum in quantity, followed by a devastating contraction of -48.99% per annum in 2016-2020. This erratic pattern underscores the high-risk environment for exporters, who are likely highly susceptible to global price fluctuations, competition and shifting international demand. The recent period (2021-2024) shows a healthy and more sustainable growth of 22.27% for quantity and a spectacular 65.83% for value, reinforcing the observed shift towards value-added exports.
Conversely, import growth has been remarkably stable and positive (Table 2). The overall CAGRs of 6.45% per annum for quantity and 12.83% per annum for value confirm the steady, inelastic demand from domestic industry. The fact that the value growth is double the quantity growth is directly attributable to the rising unit cost discussed earlier. Periods of negative growth, such as -3.23% for quantity in 2016-2020, are minor deviations in an otherwise consistent upward trend, potentially caused by temporary economic slowdowns or inventory adjustments.
This dichotomy in growth patterns solidifies India’s role: it is a stable and growing sink for global gum arabic production, while its export capability, though promising, remains a high-risk, opportunistic venture.
Instability in gum arabic export and import
The instability indices quantify the risk and uncertainty embedded in India’s gum arabic trade, confirming that exports are a far riskier enterprise than imports.
Export instability is exceptionally high (Table 3). The overall instability indices for export quantity (108.46) and value (91.07) are alarming. The period 2006-2010 was particularly turbulent, with an index of 102.91 for quantity, coinciding with the volume surge. This high level of instability poses a major challenge for policymakers and exporters alike, making it difficult to forecast earnings, invest in capacity and formulate long-term strategies. It suggests vulnerability to external shocks beyond India’s control.
Import instability, while significant, is considerably lower than for exports (Table 4). The overall instability index for import quantity is 22.67, indicating a relatively stable and predictable demand stream. However, the instability for import value is higher (37.33), driven almost entirely by volatility in global prices rather than quantity. For Indian industries, this means that while the physical supply of raw material is relatively assured, its cost is a major variable that can impact profitability. The lower instability in quantity reflects the essential nature of gum arabic as an industrial input.
Exporting and importing countries during 2024-25
The direction of trade in 2024-25 offers a clear snapshot of India’s strategic position in the global gum arabic network.
India’s export destinations are diverse, spanning Europe, Asia and the Middle East (Table 5). The top ten countries account for the majority of the Rs. 6500 lakhs export value. Russia stands as the largest market (1,181,208 kg, Rs. 3237 lakhs), followed by Indonesia and European nations like France and Germany. This geographical spread indicates that Indian exports meet quality standards required by sophisticated markets and are used in a variety of applications, from food in Europe to industrial uses in Russia and Southeast Asia.
The picture for import sources is one of extreme concentration and strategic vulnerability. India’s supply is overwhelmingly dominated by the African “gum belt” nations. Mali (14,848 tons), Sudan (11,496 tons) and Senegal (9,784 tons) together supply over 80% of India’s import volume (Table 6). This heavy reliance on a geographically concentrated region, often prone to political instability, climate change impacts and economic volatility, presents a major strategic supply chain risk. Any disruption in these countries could severely impact Indian industries dependent on GA, leading to shortages and price spikes.
In conclusion, India’s GA trade is defined by a critical dependency on raw material imports from a volatile region, leading to an increasing import bill, juxtaposed with a promising but high-risk export sector that is showing signs of moving up the value chain. The key challenges lie in mitigating the supply chain risks associated with imports and stabilizing the export sector to harness its full potential for generating foreign exchange. Strategic initiatives could include exploring sustainable domestic cultivation, diversifying import sources and adding value to exports through processing and quality certification to reduce volatility and enhance earnings.
Way forward
The data in Fig 2 and Table 2, indicates that there is a huge demand for GA in India, which is not met by its own production. The wide gap in the demand-supply is overcome by a large scale import of of GA. Approximately 40% of its geographical area in India consists of arid and semi-arid regions, which are highly suitable for cultivating
Acacia senegal (
Tewari et al., 2017). Notably, vast tracts of untapped trees already exist in regions like arid Western Rajasthan, indicating immense potential for production enhancement through improved tapping methods and resource mobilization. Beyond economic benefits, promoting
Acacia senegal cultivation aligns with environmental goals. The tree is ideal for bio-fencing, protecting agricultural fields from animal intrusion with its characteristic thorns. When integrated into agro-forestry systems-either as solid plantations (potential yield: ~100 kg/ha/year) or as boundary plantings (~20 kg/ha/year)-it offers farmers an additional income stream while contributing to carbon sequestration and preventing land degradation (
Prasad, 2024). Despite this clear potential, the development of a domestic gum arabic sector in India remains underexplored. There is a pressing need to understand the dynamics of India’s trade in this commodity to formulate strategies that reduce import dependence and harness domestic capabilities.