SECTORS AT THE INDIA PAVILION

Agriculture

CULTIVATING CHANGE
India Is The 10th Largest Arable Land Resource In The World.

Feb 2020 Coffee Exports stood at US$ 742.05 million

Feb 2020 Tea Exports stood at US$ 708.28 million

157.35 million hectares under agriculture in India

India’s agricultural export US$ 60 billion by 2022

Organic food segment exhibits CAGR of 10% with US$ 10.73 Billion by 2025

The organic food segment has been exhibiting a CAGR of 10% and is estimated to reach US$ 10.73 billion by 2025.

Zero Budget Natural Farming (ZBNF) is an agroecology method that advocates natural practices in agriculture through the regeneration of natural cycles of nutrients in the soil by substituting chemical fertilizers with a natural microbial mix. ZBNF has demonstrated an improvement in the output of all the major crop types. Andhra Pradesh has adopted ZBNF as a state policy and aims to commit 6 million farmers to ZBNF farming by 2025.

Some government initiatives to bring about a radical transformation in multifarious dimensions of the agricultural sector are as follows:

  • The Electronic National Agriculture Market (e-NAM) was launched in April 2016 to create a unified national platform for agricultural commodities by networking existing Agricultural Produce Market Committees (APMCs).
  • Food Corporation of India and state agencies are set to procure a record quantity of 74.2 million tons of paddy during the Kharif crop season.
  • The Tribal Cooperative Marketing Development Federation of India (TRIFED) has included 100 new Forest Fresh Organic Products sourced from tribes across the country on its e-marketplace platform tribesindia.com.
  • The National Bank for Agriculture and Rural Development (NABARD) has planned to set up a subsidiary to provide loan guarantee for agriculture and rural development financing.
  • Data infrastructure is being set up to integrate the Pradhan Mantri Fasal Bima Yojana (PMFBY), PM-Kisan Sampada Yojana, Soil Health Card and land record details through a common database.
  • The Agriculture Export Policy, 2018 aims to increase India’s agricultural export to US$ 60 billion by 2022 and US$ 100 billion in the subsequent years.
  • The promotion of agri-tech under the National Agricultural Policy has led to huge investments of over US$ 10 million in 2017.
  • Transport and Marketing Assistance (TMA) scheme will provide financial assistance for transport and marketing of agricultural products to further aid agriculture exports.
  • Pradhan Mantri Krishi Sinchai Yojana (PMKSY) was launched with an investment of US$ 7.7 billion to develop irrigation sources as a permanent solution to drought.

  • The government has allowed 100% Foreign Direct Investment in marketing of food products and dedicated E-commerce ventures under the automatic route.
  • Nestle India has planned to set up its ninth factory in Gujarat with an investment of US$ 100.16 million.
  • US$ 1.19 billion will be dedicated towards ethanol production in the country.
  • Indian startups are doing disruptive innovation in the agriculture landscape in the country by creating complete technological solutions to meet the needs and aspirations of the Indian farmers.
  • National Fertilizers Limited, the oldest and the largest fertilizer manufacturer in the country produced and sold more than 1.5 million units by March 2020.
  • According to the 11th 5 year plan, there is a potential for expansion of storage capacity by 35 million tons. The investment opportunities in the Food Storage facilities look very promising for both private and foreign investors.

India is expected to double its farm income by the year 2022. The momentum generated by the agriculture sector in India can be expected to grow over the next few years owing to increased investment in infrastructure such as irrigation facilities, warehousing and cold storage.

India’s agriculture sector with its vast resource base, strong forward and backward linkages, a high priority accorded to the sector and a progressive legislation in the offing stands at the cusp of a transformation that could mobilize the resources of one of the largest agricultural land masses on earth.