India agriculture scenario

Agriculture is the primary source of livelihood for about 58 per cent of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 17.67 trillion in FY18.

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 and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 32 per cent 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. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively

*Market Size*

During 2017-18* crop year, food grain production is estimated at record 284.83 million tonnes. In 2018-19, Government of India is targeting foodgrain production of 285.2 million tonnes. Milk production was estimated at 165.4 million tonnes during FY17, while meat production was 7.4 million tonnes. As of September 2018, total area sown with kharif crops in India reached 105.78 million hectares.

India is the second largest fruit producer in the world. Production of horticulture crops is estimated at record 306.82 million tonnes (mt) in 2017-18 as per third advance estimates.

*Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach US$ 38.21 billion* in FY18. Between Apr-Oct 2018 agriculture exports were US$ 21.61 billion. India is also the largest producer, consumer and exporter of spices and spice products. Spice exports from India reached US$ 3.1 billion in 2017-18.


According to the Department of Industrial Policy and Promotion (DIPP), the Indian food processing industry has cumulatively attracted Foreign Direct Investment (FDI) equity inflow of about US$ 8.57 billion between April 2000 and June 2018.

*Some major investments and developments in agriculture are as follows:*

By early 2019, India will start exporting sugar to China.The first mega food park in Rajasthan was inaugurated in March 2018.Agrifood start-ups in India received funding of US$ 1,66 billion between 2013-17 in 558 deals.In 2017, agriculture sector in India witnessed 18 M&A deals worth US$ 251 million.Government Initiatives

Some of the recent major government initiatives in the sector are as follows:

The Agriculture Export Policy, 2018 was approved by Government of India in December 2018. *The new policy aims to increase India’s agricultural exports to US$ 60 billion by 2022 and US$ 100 billion in the next few years* with a stable trade policy regime.In September 2018, the Government of India announced Rs 15,053 crore (US$ 2.25 billion) procurement policy named ‘Pradhan Mantri Annadata Aay SanraksHan Abhiyan’ (PM-AASHA), under which states can decide the compensation scheme and can also partner with private agencies to ensure fair prices for farmers in the country.In September 2018, the Cabinet Committee on Economic Affairs (CCEA) approved a Rs 5,500 crore assistance package for the sugar industry in India.The Government of India is going to provide Rs 2,000 crore for computerisation of Primary Agricultural Credit Society (PACS) to ensure cooperatives are benefitted through digital technology.With an aim to boost innovation and entrepreneurship in agriculture, the Government of India is introducing a new AGRI-UDAAN programme to mentor start-ups and to enable them to connect with potential investors.The Government of India has launched the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) with an investment of Rs 50,000 crore aimed at development of irrigation sources for providing a permanent solution from drought.The Government of India plans to triple the capacity of food processing sector in India from the current 10 per cent of agriculture produce and has also committed Rs 6,000 crore as investments for mega food parks in the country, as a part of the Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters (SAMPADA).The Government of India has allowed 100 per cent FDI in marketing of food products and in food product e-commerce under the automatic route.Achievements in the sectorThe Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national market for agricultural commodities by networking existing APMCs. Up to May 2018, *9.87 million farmers, 109,725 traders were registered on the e-NAM* platform. 585 mandis in India have been linked while 415 additional mandis will be linked in 2018-19 and 2019-20. *Agriculture storage capacity in India increased at 4 per cent CAGR between 2014-17 to reach 131.8 million metric tonnes* .

Coffee exports reached record 395,000 tonnes in 2017-18.Between 2014-18, 10,000 clusters were approved under the Paramparagat Krishi Vikas Yojana (PKVY).Between *2014-15 and 2017-18 (up to December 2017), capacity of 2.3 million metric tonnes was added in godowns while steel silos with a capacity of 625,000 were also created* during the same *period.Around 100 million Soil Health Cards (SHCs) have been distributed* in the country during 2015-17 and a soil health mobile app has been launched to help Indian farmers.Road Ahead

The agriculture sector in India is expected to generate better momentum in the next few years due to increased investments in agricultural infrastructure such as irrigation facilities, warehousing and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to concerted efforts of scientists to get early-maturing varieties of pulses and the increase in minimum support price.

The government of India targets to increase the average income of a farmer household at current prices to Rs 219,724 by 2022-23 from Rs 96,703 in 2015-16.This achievement is grossly impossible, keeping in view the last three years income data of the farmers.
However, India’s agriculture growth is poised to fly in coming years due to the increase in awareness and also brain storming discussions between various sections of farmers and real agri experts and also a major chunk of pseudo agri experts,but their rumor mongering may also lead to the ground realities and may lead to force the govt to generate agriculture real time data, so that india is bound to be most super agricultural ly productive and highly competitive quality wise and quantity wise in every respect in the international agri market.


farmer’s progress needs Marketing reforms, encouraging contract farming, and boosting investment in the food processing industry.

India’s farms have become progressively more fragmented, with the latest Agriculture Census 2015-16 showing that India’s average farm size is now 1 hectare,from an average of 2.7 hectares in 1970.
NITI Aayog has recommended that farms need to get bigger. Land being a state subject requires that states must take the lead by using NITI Aayog’s Model Land Leasing Act, 2016, after suitable modification as per their needs

The benefits of rising productivity will not accrue to farmers unless the supply and value chain is strengthened, especially in the case of horticulture products. NITI Aayog’s Strategy Document points out that the annual cost of post-harvest losses can be as much as Rs 92,561 crore. The study by the Central Institute of Post-Harvest Engineering & Technology (CIPHET) indicated that the largest amount of losses accrue at the harvesting stage, then at the sorting/grading stage, followed by the transport one.
Improving productivity should be accompanied by developing an efficient value chain, with adequate grading/sorting and assaying facilities, marketing reforms, encouraging contract farming, and boosting investment in the food processing industry.



Crop rotation can change agricultural economy of India.

India agriculture can take a dramatic turn if the practice of crop rotation is imbibed by the farmers.
Crop rotation not only affects short-term profits, but long-term sustainability. An effective rotation can reduce weed and pest control and fertilizer costs; increase the amount of moisture that the soil will absorb; improve soil health and nutrient cycling; and boost the amount of residue that will be consumed by soil organisms.
The crop rotation will take care many problems like frequent shortage or glut situations of different crops in different areas,besides the nutritional issues will also be taken care as the microbes of the soil will have rejuvenated ecosystem and new energised aminoacids and different combination of nutrients with the help of rich flora and fauna of the soil and this will change the entire physics, chemistry and modern biology of the agriculture of india which will bring a new era of the rich farmers and the rich and talented population of India. #agriculture #economics #farmers #contacts #government #sustainability


Farmers difficulties which are not allowing him to become rich.

Agriculture in India contributes 17 percent to Rs150 trillion economy,has remained relatively untouched by reforms with growth rates averaging below three percent over as many decades. Lack of technology, inefficient markets and small landholdings combined with insufficient storage and logistics facilities along with the fact that available storage infrastructures are far away from the field farms, have worsened to multiple challenges.

About a quarter Indian farmers live below the official poverty line, while 52 percent of farming households are indebted in spite of guaranteed prices for crop purchases by the federal government on at least three crops — wheat, rice and cotton.

The agricultural sector plays a pivotal role in the growth and development of the Indian economy. It fulfils the food and nutrition requirements of 1.3 billion Indians as well as creates employment opportunities for the majority of the population.
A clear indication of growth can be seen in increased investor activity in the Agritech start-up space. 2018 saw a investment in Indian agriculture, which is a 21per cent increase from the previous year. While this demonstrates progression, the sector still struggles behind in certain segments such as storage and supply chain management. With this growing demand, there is a need for agri-entrepreneurs to employ innovative models and solve the problems in this sector such as dissemination of information, farm management, capital availability, farm mechanization, improved cultivars, environment-friendly pesticides and fertilizers and agricultural supply chain. There are various segments lacking development, which open up opportunities for entrepreneurs:

Traditional methods are still used by farmers today, driven by experiences, which are not practical today. With the development and integration of new equipment, practices and types of seeds, these tasks can be handled with much more efficiency. The available data could be utilized and worked on to benefit cultivation across the board.

Lack of correct tools and machines can lead to a lot more damage than anticipated, but it may not be affordable by many farmers. This can be rectified by agro-dealers who can offer rental services of farm machinery. Knowledge of machinery and its appropriate utilization is another invaluable service that should be provided to farmers.

After harvesting of crops, processing, cleaning and packaging must be executed before the crop becomes fit for human consumption. This is a necessary step that cannot be done without the right tools. The profits are greatly amplified by pre post-harvest processing.
Infrastructure: The quality of produce is enhanced with improved transport facilities. It helps create a market for agricultural produce and facilitates interaction among geographical regions. Over 35% of produce is often damaged and rendered wasteful due to lack of proper storage and transportation. Therefore, proper stacking and transportation is a dire necessity of the time.
With the growing demand and advancement in technology, there is a constant need for the development of new methods and seeds in the agricultural industry. This can only be done through research and development. Farmers can access these researches to overcome issues like seed problems, crop sustainability, pests and diseases etc. Research can also ensure the development of quality and environment-friendly agrochemicals.
Every stage in the value chain is important and dependent on one another to function properly and every stage is profitable. With the current challenges and opportunities prevalent in our country, entrepreneurship can provide innovative solutions to solve some of the critical issues in the agricultural sector.
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increasing demand for quality warehousing spaces in India.

Increasing industrial investments in manufacturing (near Chennai) and IT investments (in Bangalore and other southern cities) are expected to drive the growth of retailing especially in south India, thus pushing the demand for modern warehouse space. In addition, the increasing relationships of logistics players–DHL, FedEx, Gati, with retail companies–Celio, Pantaloons, Future Group, Danone, are increasing the demand for quality warehousing spaces in India.

The retail segment also demands the highest quality of service from logistics solution providers. Global benchmarks are being increasingly applied to retail operations in India. Not only do logistics service providers require breadth of transportation network but also expertise in storage and value-added services to cater to such a dynamic market.Food retailing has also gained importance in the recent past. India’s food retail sector, worth around ` 3.1 trillion is expected to more than double, to ` 6.7 trillion by 2025, riding on the emerging organised retail as well as the change in consumption patterns along with fast-changing demographics and habits. As food products are perishable, there arises the need for temperature-controlled warehousing and transportation services, thus opening up investment opportunitiesin cold storages for multinational companies and private equity firms.Apart from foods retailing, the changing spending patterns in rural areas have also been attracting retailers to establish their bases in there. As rural areas do not have well-developed infrastructure, retailers are investing in cold storages and customised warehouses nearer to the farms and manufacturing places to avoid damage during transportation and to reduce costs.
Therefore, there is unimaginable scope of warehousing in retail and the retail in food items including processed foods,clothes, consumables, electronic goods, pharmaceuticals, auto- parts,as is evident from the data of increased sales recently through online retail business on B2B and B2C.


Increasing global need for cold storage

From 2017 the global need for cold storage space increased dramatically, driven by growth in the world’s population, increased varieties of perishable commodities and the global consumer demand for fresh produce year-round. And these factors are pushing occupancy rates at cold-storage facilities to an all-time high. During this period the big players are also starting to build just-in-time inventories. Furthermore, with the growth of world population now standing at 7 billion people and with approx.12.5% of the world land estimated to be under cultivation, the annual global food production (animal & seafood) reached to an estimated level of 6.8 billion tons during 2014-15. The FAO estimates that by the year 2050, food production will have to increase globally by 70% (about 4400 million tons) to feed an additional 2.3 billion people. Our global population are said to need over 1850 million product tons of cold storage facilities for all kinds of food products. During 2016 the IARW estimated that global cold storage capacity for 52 countries reported that approx. 600 million cubic meters of global refrigerated warehouse space have been constructed & commissioned – mainly public refrigerated warehouse facilities (private refrigerated facilities are not considered significant). From the above , India (population 1260 million) surpassed the US and had biggest cold storage capacity in the world with 131 million cubic meter space (USA had 115 million, China 78 million, Brazil 16 million & Indonesia 12 million cubic meter space).

It is estimated that every second, 66 tons of food products are either lost or thrown away, according to a recent report by the Boston Consulting Group. This amount translates into 1.7 billion tons of food a year,
that is about one fourth of the food produced across the world. While this huge amount of food is lost between the farm and the fork, the United Nations Food and Agriculture Organization (FAO) says over ten percent of the world’s population are suffering from chronic undernourishment.

With the fact that the nutritional energy (calorie content) of our produced food seems in excess of those required to feed the world population, it is hoped that with the infrastructure of road construction and the emergence of additional refrigerated vehicles such as vans , trucks semi-trailers & 40 ft trailers (all of which are desperately being sought by China & India for a combined fleet of 500,000 vehicles) together with recruiting of many qualified drivers & system repair technicians , storage & logistics; the tragic global malnutrition phenomena (which now account to over one billion) is anticipated to be significantly minimized by contribution to addressing the issue of undernourishment, particularly in the deprived sectors of the world.

Refrigeration inhibits the development of bacteria and toxic pathogens, reduces the need for chemical preservatives in food thus preventing food borne diseases. According to WHO within 50 years a substantial decrease of stomach cancer was achieved due to application of cold chain industries.