AGRICULTURE SECTOR OVERVIEW
Statistics, news & updates: everything you need to know about the Agriculture Industry in India
Summary/Snapshot
Agriculture Industry
India is the 2nd largest producer of fruits and vegetables, rice, wheat, groundnuts, cashew, and tea globally; and accounts for 10% of the world’s fruit production with first rank in the production of mango, bananas, sapota, and acid lime.
India has also rapidly emerged as a net exporter of agricultural products in recent years. With the agriculture exports touching $50.2 Bn in FY 2022-23. For 2023-24, production of Kharif Nutri/coarse cereals is estimated at 351.37 LMT.
The demand for organic products in the Indian market is growing and is anticipated to rise with a CAGR of 25.25% between 2022-27.
- India is the world’s leading producer of spices, pulses, milk, tea, cashews, and jute, as well as wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. In terms of value, the most valuable agricultural export goods are marine, rice, and spices. Buffalo meat, sugar, cotton, and oil products are other major export.
Increasing farm mechanization and proper equipment can increase farm productivity by up to 30% and reduce the input cost by about 20%. Tractor accounts for most of the farm mechanisation in India. The country is also the largest market in the world for tractors.
Promotion of Agriculture drones. Apart from the PLI Scheme, the Government of India has carried a series of reforms to make India a global drone hub by 2030
Growth Drivers
Over the next few years, a 4% increase in food grain storage capacity is predicted to reshape the agricultural industry.
On reaching the age of 60, qualifying small and marginal farmers will receive a minimum fixed pension of US$ 42.92, subject to specific exclusion criteria.
- Consumers in India are increasingly looking for organic and locally sourced produce, creating opportunities for small-scale farmers to enter the market and differentiate their products from those of larger agricultural corporation
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.
- Huge opportunity exists for agri input segments like seeds and plant growth nutrients.
- Technology-driven, integrated supply chains enable entities to reduce inventory and costs, add product value, extend resources, accelerate time to market, expand market, increase pricing for sellers and variety for buyers as well as retain customers.
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
We have completed over 8,000 projects worldwide & 1500 projects in India in nearly every business segment.
WINE & SPIRITS / FOOD & BEVERAGES / AGRIBUSINESS / ENERGY & RESOURCES / TRANSPORTATION / INDUSTRY / TECHNOLOGY / LIFE SCIENCES & HEALTH / SERVICES / CONSUMER & LUXURY GOODS / PUBLIC & PRIVATE INSTITUTIONS