AGRICULTURE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Agriculture Industry in India
Summary/Snapshot
Agriculture Industry
- Agriculture is the primary source of income for 54.6 per cent of India’s Gross value (GVA) added by agriculture, forestry, and fishing in FY20 was estimated to be US$ 276.37 billion.
- According to the Ministry of Agriculture, in the 2020-21 Rabi season, 44 per cent of wheat and other Rabi crops were harvested out of a total of 97 lakh hectares of sown land.
- By 2024-25, the government aims for India’s fisheries exports to reach US$ 14.31 billion.
- Foodgrain output hit a new high of 305.4 million tonnes in the 2020-21 crop year. The government has set a goal of increasing production by 2% in FY 2021-22.
- India is the world’s leading producer of spices, pulses, milk, tea, cashews, and jute, as well as wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. In terms of value, the most valuable agricultural export goods are marine, rice, and spices. Buffalo meat, sugar, cotton, and oil products are other major export.
- The Pradhan Mantri Fasal Bima Yojana aims to improve agricultural sustainability by giving financial assistance to farmers who have suffered crop losses or damage.
Agricultural commodities exports stood at US$ 9,598 million in FY 2022-23 April-July 2022, up by 30% YoY.
India’s agricultural exports are expected to reach $60 billion by 2022 under the new Agriculture Export Policy. Exports of essential agricultural commodities surged by 43 percent to us$ 7.3 billion in April-September 2020, compared to the same period the previous year.
Growth Drivers
Over the next few years, a 4% increase in food grain storage capacity is predicted to reshape the agricultural industry.
On reaching the age of 60, qualifying small and marginal farmers will receive a minimum fixed pension of US$ 42.92, subject to specific exclusion criteria.
In June 2021, the Indian government granted funds for farm mechanization, including the development of custom hiring centers, farm machinery banks, and high-tech hubs in various states.
Sub industries
- Agricultural & Farm Machinery
- Pesticide,
- Fertilizer &
- Agrochemicals
Opportunities
Demand for agricultural supplies and related services such as warehousing and cold storage is rapidly rising.
Food processing infrastructure has a potential investment of US$ 22 billion, with 100 percent foreign direct investment.
The World Bank approved a loan of US$ 429.25 million to finance minor and mega food parks in the country in September 2019.
The ‘Micro Irrigation Fund’ will be doubled to US$ 1.37 billion.
Challenges
Feeding a growing population, providing a livelihood for farmers, and protecting the environment.
Procuring good quality seeds because of the exorbitant prices of better seeds.
Heavy reliance on local traders for the disposal of their farm produce, which is sold at a low price due to a lack of adequate marketing facilities.
Key Investment Opportunities
India’s agriculture technology can grow to the US $24.1 billion in 5 years. The current market size of Agri tech, including AI-based Agri innovation start-ups in India, is nearly worth the US $204 million.
The Bamboo Industry has the potential to be worth the US $4.29billion.
The government of India has notified 50 items in the list of Minor Forest Produce. The Government of India has introduced Van Dhan Vikas Karykram under which the Minor Forest Produce gatherers will be given training in the scientific method of collection of Minor Forest Produces, their processing, value addition, etc.
Leveraging the farmer producer organizations (FPOS) has the potential to monetise the number of farmers getting connected through such initiatives
Recent Developments
The majority of states have seen a drop in production in the agriculture subsector. Agriculture productivity has decreased dramatically in states like Chhattisgarh (13%) and Himachal Pradesh (15%).
Some harvesting efforts are being halted due to a lack of migrant workers, particularly in northwest India, where wheat and pulses are being picked.
India has emerged as the net exporter of agricultural products, with exports in 2021-22 touching a record US $ 50.2 billion.
Key Players in India
National
-
- Rallis India Limited
- Nuziveedu seeds limited
- Rashtriya Chemicals & Fertilizers Limited
- Krishak Bharati Cooperative Ltd
- Bharat Group
- Godrej Agrovet Limited
- Atul Limited
- Zuari Agro Chemicals Limited
International
- BASF
- Yara International
- Syngenta AG
- DowDuPont
- Nutrien (Formerly Agrium Inc. and PotashCorp)
- Bayer AG
- CNH Industrial NV
- Archer Daniels Midland Company
- Cargill
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