Agriculture

Agriculture is the primary source of livelihood for about 58% of India’s population. Consumer spending in India will return to growth in 2021 post the pandemic-led contraction, expanding by as much as 6.6%. The Indian food industry is poised for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. Indian food and grocery market is the world’s sixth largest, with retail contributing 70% of the sales. As per the second advance estimates, foodgrain production in India is estimated to be 316.06 MT in FY 2021-22.

In terms of exports, the sector has seen good growth in the past year. In FY22 (until December 2021) -

• Exports of marine products stood at US$ 6.12 billion.

• Exports of rice (Basmati and Non-Basmati) stood at US$ 6.12 billion.

• Buffalo meat exports stood at US$ 2.51 billion.

• Sugar exports stood at US$ 2.78 billion.

• Tea exports stood at US$ 570.15 million.

• Coffee exports stood at US$ 719.95 million

Future of agriculture is a very important question for the planners and all other stakeholders. Government and other organisations are trying to address the key challenges of agriculture in India, including small holdings of farmers, primary and secondary processing, supply chain, infrastructure supporting the efficient use of resources and marketing, reducing intermediaries in the market. There is a need for work on cost-effective technologies with environmental protection and on conserving our natural resources.

The reforms towards privatisation, liberalisation and globalisation affected inputs market at a faster pace. Agricultural marketing reforms after 2003 made changes in marketing of agricultural outputs by permitting private investment in developing markets, contract farming and futures trading, etc. These amendments in marketing acts have brought about some changes but the rate is less.

Along with this, the information technology revolution in India, new technologies in agriculture, private investments especially on research and development, government efforts to rejuvenate the cooperative movement to address the problems of small holdings and small produce etc are changing face of agriculture in India.

Many startups in agriculture by highly educated young ones show that they are able to understand the high potential of putting money and efforts in this sector. Cumulative effects of technology over the next decade will change the face of agriculture.

All the constraints in agriculture make the productivity and returns complex but still a high untapped potential is there in India’s agriculture sector.

Advantageous weather and soil conditions, high demand for food, untapped opportunities, various fiscal incentives given by the government for inputs, production infrastructure, availability of cheap credit facilities and for marketing and export promotion are attracting many individuals, big companies, startups and entrepreneurial ventures to do a lot of investments on innovations, inventions, research and development and on other aspects of business.

The efforts are being done to convert all the challenges in agriculture into opportunities and this process is the future of agriculture.