Agriculture Industry in India

Agriculture Industry in India:

The agriculture industry in India size reached INR 90,215.8 Billion in 2023. Looking forward, IMARC Group expects the market to reach INR 227,059.9 Billion by 2032, exhibiting a growth rate (CAGR) of 10.5% during 2024-2032. The changing dietary patterns of the masses, rapid population growth, altering weather patterns, increasing frequency of natural disasters, and favorable technological advancements, such as precision farming, data analytics, drones, and automation, are some of the major factors propelling the market growth.

Agriculture Industry in India Analysis:

• Major Market Drivers: Significant population growth and increasing demand for agricultural products are primarily driving the growth of the agriculture industry in India. Besides this, the rising preference for organic food and beverages among the masses is also contributing to the market growth.
• Key Market Trends: The rising adoption of sustainable farming practices to improve crop quality, conserve water, minimize fertilizer usage, and reduce adverse environmental impacts is creating a positive outlook for the overall market. 
• Competitive Landscape: Some of the leading Indian companies in the agriculture industry are DuPont India, Rallis India Limited (Tata Chemicals Limited), Nuziveedu Seeds Limited, Godrej Agrovet Limited, Nestle India Limited, Advanta Seeds, Parle Products Pvt. Ltd., Britannia Industries Limited, and IFFCO, among others. 
• Challenges and Opportunities: Challenges in India's agriculture industry include fragmented land holdings, water scarcity, and reliance on traditional methods. However, opportunities abound with advancements in technology, such as precision farming, agri-tech startups, and government initiatives promoting agricultural modernization. Embracing innovation while addressing systemic challenges can propel the recent prices in the agriculture industry in India.

Agriculture Industry in India Trends:

Rising Food Demand

The growing population, inflating disposable incomes, and elevating standards of living are resulting in an increased demand for food and agricultural products. According to a data report, in India, the total food grain demand will grow to the level of 311 million tons, which includes 122, 115, 47, and 27 million tons of rice, wheat, coarse cereals, and pulses, respectively, by the year 2030. Furthermore, according to the Indian Council of Agricultural Research (ICAR), increasing awareness regarding the consumption of vegetables to meet various dietary requirements and nutritional needs has raised the demand for vegetables, consequently leading to a rise in the area of vegetable production. Moreover, in 2021, the Ministry of Agriculture and Farmers Welfare (India) reported that the per capita gross availability of vegetables in India increased from 388.7 grams per day in 2017-2018 to 400 grams per day in 2020-2021. This indicates the expanding supply and consumption pattern of vegetables, which is anticipated to further propel the demand in the agriculture industry in India. 

Increasing Export Activities

The agriculture sector is the primary livelihood source for about 58% of India's population. This, along with the significant expansion of the agriculture sector, has made the country self-sufficient in meeting domestic as well as global food demand. India is the world's second-largest producer of rice, wheat, and other cereals. Moreover, according to the agriculture industry in India overview, the augmenting demand for cereals in the global market is creating a positive environment for the export of Indian cereal products. For instance, according to the estimate for 2020-21 by the Ministry of Agriculture of India, the production of major cereals like rice, maize, and bajra stood at 102.36 million tons, 19.88 million tons, and 9.23 million tons, respectively. Furthermore, the Agricultural & Processed Food Products Export Development Authority (APEDA) stated that India's export of cereals stood at US$ 12,872.64 Million during the year 2021-22. Among the exports of cereals, rice occupied the major share in India's total cereals export at 75% (in value terms). Whereas other cereals, including wheat, represented only a 25% share of total cereals exported from India during this period. Additionally, as per ITC TradeMap, the major export destinations for the year 2021-22 were Bangladesh, Iran, Saudi Arabia, Nepal, Vietnam, and Benin. Such a massive rise in exports is projected to propel the revenue of the agriculture industry in India.

Introduction of Favorable Government Initiatives

The implementation of various government initiatives to enhance agricultural productivity, ensure food security, improve farmers' income, and promote sustainable practices is significantly catalyzing the growth of the market. For instance, the introduction of favorable initiatives, such as the National Program on Organic Farming and the Paramparagat Krishi Vikas Yojana, by the Government of India (GoI) to promote bio-agriculture in the country through financial assistance to farmers is facilitating the market growth. Similarly, in the Union Budget 2022-23, INR 1.24 Lakh Crore (US$ 15.9 Billion) was allocated to the Department of Agriculture, Cooperation, and Farmers' Welfare. Additionally, a network of 729 Krishi Vigyan Kendras was established at the district level across the country to ensure that newer technologies, such as improved variety seeds of crops, new breeds/ strains of livestock and fish, and advanced production and protection technologies, reach the Indian farmers. Besides this, the concerned government authorities are also collaborating with farming technology providers to improve and maximize the yield, which is positively impacting the outlook of the agriculture industry in India. For instance, in September 2021, the Union Ministry of Agriculture and Farmers' Welfare signed five MoUs with CISCO, Ninjacart, Jio Platforms Limited, ITC Limited, and NCDEX e-markets Limited. These MoUs were signed to commence five pilot projects aimed at helping farmers determine the kind of crops to grow, the variety of seeds to use, and the best practices to adopt to maximize yield. 

Agriculture Industry in India Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the agriculture industry in India, along with forecasts at the country level for the period 2024-2032. Our report has categorized the market based on subsectors.

Breakup by Subsectors:

• Farming
• Agriculture Equipment
• Fertilizers
• Pesticides
• Warehousing
• Cold Chains
• Food Processing
• Dairy Market
• Floriculture
• Apiculture
• Sericulture
• Seeds
• Fisheries
• Poultry
• Animal Husbandry
• Animal Feed
• Bio-Agriculture Market
   

Farming is dominating the agriculture industry in India

The report has provided a detailed breakup and analysis of the agriculture industry in India based on the subsectors. This includes farming, agriculture equipment, fertilizers, pesticides, warehousing, cold chains, food processing, dairy market, floriculture, apiculture, sericulture, seeds, fisheries, poultry, animal husbandry, animal feed, and bio-agriculture market. According to the agriculture industry in India report, farming represented the largest segment.

The farming sector is dominating the agriculture industry in India due to the increasing demand for nutritious and diverse food options. For instance, according to a data report, the total food grain demand will grow to the level of 311 million tons, which includes 122, 115, 47, and 27 million tons of rice, wheat, coarse cereals, and pulses, respectively, by the year 2030. In response to this, farmers are cultivating crops, raising livestock, and engaging in fisheries to provide a reliable and sustainable supply of food for human consumption. This, in turn, is anticipated to propel the share of the agriculture industry in India. Moreover, the increasing inclination toward sustainable and organic farming that focuses on improving soil health and fertility and promoting efficient water management is also contributing to the market growth. 

Additionally, according to the agriculture industry in India statistics by IMARC, the government authorities in India are taking initiatives to adopt chemical-free farming and enhance the reach of natural farming. For instance, the Indian government formulated the National Mission on Natural Farming (NMNF) as a separate and independent scheme from 2023-24 to inculcate natural farming practices among farmers. This scheme involves the continuous creation of awareness, training, handholding, and capacity building of farmers. The provision of Rs 459.00 crores for 2023-24 was proposed for this mission. 

Competitive Landscape:

The agriculture industry in India is experiencing significant growth due to the introduction of new technologies and practices to improve productivity, sustainability, and efficiency. Many key players are promoting the adoption of UAVs and drones that are equipped with imaging sensors and cameras to capture high-resolution aerial images, providing farmers with valuable insights into crop health, nutrient deficiencies, and pest infestations. Moreover, several companies are introducing advanced drip irrigation systems, precision farming solutions, and water management technologies to help farmers optimize water usage, improve irrigation efficiency, and promote sustainable farming practices, which is strengthening the market growth. Apart from this, the market is witnessing a steady increase in research and development initiatives as well as investments resulting in improved technology, a better supply chain as well as the use of organic materials for manufacturing high-quality products. Furthermore, rapid advancements, such as the adoption of artificial intelligence (AI) and machine learning (ML) algorithms in agriculture to analyze large datasets, predict crop yields, optimize resource allocation, and detect plant diseases, are driving the market growth.

The report has provided a comprehensive analysis of the competitive landscape in the agriculture industry in India. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• DuPont India
• Rallis India Limited (Tata Chemicals Limited)
• Nuziveedu Seeds Limited
• Godrej Agrovet Limited
• Nestle India Limited
• Advanta Seeds
• Parle Products Pvt. Ltd.
• Britannia Industries Limited
• IFFCO
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Agriculture Industry in India Recent Developments:

• April 2024: AgriVision initiated the "Krishi Chinhaari" (Agricultural Emblem) Article Collection Campaign to rejuvenate India's ancient agriculture tradition by collecting articles, research papers, and studies of India's scientific agricultural tradition and ancient practices. The campaign aims to affirm India's distinctive knowledge in the field of agriculture.
• January 2024: The Council of Scientific and Industrial Research (CSIR) launched a unique mission to develop region-specific smart agro-technologies to improve soil health and productivity and thereby enhance farmers' income. Moreover, this endeavour will help the Central Government introduce the use of automation, sensors, drones, and artificial intelligence gadgets in Indian agriculture in the future.
• March 2023: The government authorities of Ecuador, India, Kenya, Laos, Philippines, Uruguay, and Vietnam joined hands to launch a US$ 379 Million initiative to combat pollution from the use of pesticides and plastics in agriculture practices.

Agriculture Industry in India Report Scope:

Key Benefits for Stakeholders

• • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the agriculture industry in India from 2018-2032.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the agriculture industry in India.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the agriculture industry in India and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.