Agriculture is the backbone of the Indian economy, employing over 60% of the population. The document outlines recent developments in the Indian agriculture sector, including rising exports, major investments, and government initiatives. Exports of agricultural products have increased significantly in recent years. The government is promoting mechanization, increasing credit availability, and launching new programs to boost productivity and ensure food security for India's growing population. Continued investment and innovation will be needed to sustain agricultural growth in the coming years.
3. INTERODUCTION-INTERODUCTION-
Agriculture is the backbone of Indian economy. The sector plays a vitalAgriculture is the backbone of Indian economy. The sector plays a vital
role in the development of India with over 60 per cent of the country’srole in the development of India with over 60 per cent of the country’s
population deriving their subsistence from it. Most of the industries alsopopulation deriving their subsistence from it. Most of the industries also
depend upon the agriculture sector for their raw materials.depend upon the agriculture sector for their raw materials.
India ranks first in the production of milk, pulses, jute and jute-like fibers;India ranks first in the production of milk, pulses, jute and jute-like fibers;
second in rice, wheat, sugarcane, groundnut, vegetables, fruits and cottonsecond in rice, wheat, sugarcane, groundnut, vegetables, fruits and cotton
production; and is a leading producer of spices and plantation crops asproduction; and is a leading producer of spices and plantation crops as
well as livestock, fisheries and poultry. The rapid growth of agriculture iswell as livestock, fisheries and poultry. The rapid growth of agriculture is
essential not only for self-reliance but also for meeting the food andessential not only for self-reliance but also for meeting the food and
nutritional security of the people, to bring about equitable distribution ofnutritional security of the people, to bring about equitable distribution of
income and wealth in rural areas as well as to reduce poverty and improveincome and wealth in rural areas as well as to reduce poverty and improve
the quality of life.the quality of life.
Department of Agriculture and Cooperation under the Ministry ofDepartment of Agriculture and Cooperation under the Ministry of
Agriculture is the nodal organization responsible for development of theAgriculture is the nodal organization responsible for development of the
agriculture sector in India. The organization is responsible for formulationagriculture sector in India. The organization is responsible for formulation
and implementation of national policies and programmers aimed atand implementation of national policies and programmers aimed at
achieving rapid agricultural growth through optimum utilization of land,achieving rapid agricultural growth through optimum utilization of land,
water, soil and plant resources of the country.water, soil and plant resources of the country.
4. MARKETMARKET DYANAMICS -DYANAMICS -
India has improved its position in agricultural and food exports to 10thIndia has improved its position in agricultural and food exports to 10th
globally, backed by policy impetus by the government. “Exports ofglobally, backed by policy impetus by the government. “Exports of
agricultural products are expected to cross US$ 22 billion mark by 2014 andagricultural products are expected to cross US$ 22 billion mark by 2014 and
account for 5 per cent of the world's agriculture exports,” according to theaccount for 5 per cent of the world's agriculture exports,” according to the
Agricultural and Processed Food Products Export Development AuthorityAgricultural and Processed Food Products Export Development Authority
(APEDA).(APEDA).
Total exports of Indian agri and processed food products from April 2012 toTotal exports of Indian agri and processed food products from April 2012 to
March 2013 stood at Rs 11,633,168.41 lakh (US$ 17.26 billion) asMarch 2013 stood at Rs 11,633,168.41 lakh (US$ 17.26 billion) as
compared to Rs 8,248,025.32 lakh (US$ 12.23 billion) during the samecompared to Rs 8,248,025.32 lakh (US$ 12.23 billion) during the same
period last year, according to the data provided by APEDA.period last year, according to the data provided by APEDA.
India recorded an increase of 22 per cent in the export of spices and spice-India recorded an increase of 22 per cent in the export of spices and spice-
based products during 2012-13 to touch 699,170 tonnes, as against 575,270based products during 2012-13 to touch 699,170 tonnes, as against 575,270
tonnes in the previous financial year. The soymeal exports during June 2013tonnes in the previous financial year. The soymeal exports during June 2013
was 213,400 tonnes as compared to 180,900 tonnes in the same period ofwas 213,400 tonnes as compared to 180,900 tonnes in the same period of
previous year registering an increase of 18 per cent.previous year registering an increase of 18 per cent.
Groundnut sowing in Gujarat has touched 1.41 million hectares as on July 1,Groundnut sowing in Gujarat has touched 1.41 million hectares as on July 1,
2013 as against 0.22 million hectares in the corresponding period last year,2013 as against 0.22 million hectares in the corresponding period last year,
according to Agriculture & Co-operation Department, Government ofaccording to Agriculture & Co-operation Department, Government of
Gujarat.Gujarat.
The foreign direct investment (FDI) inflows in agricultural services andThe foreign direct investment (FDI) inflows in agricultural services and
machinery sector during April 2000 to June 2013 stood at US$ 1,620.65machinery sector during April 2000 to June 2013 stood at US$ 1,620.65
million and US$ 337.21 million respectively, as per the data released bymillion and US$ 337.21 million respectively, as per the data released by
Department of Industrial Policy and Promotion (DIPP).Department of Industrial Policy and Promotion (DIPP).
5. MAJORMAJOR DEVLOPMENTSDEVLOPMENTS ANDAND INVESTMENT -INVESTMENT -
A number of memorandum of understandings (MoU) were signed betweenA number of memorandum of understandings (MoU) were signed between
Indian Council of Agricultural Research (ICAR) and the industry. MoUs haveIndian Council of Agricultural Research (ICAR) and the industry. MoUs have
been signed for more than 60 ready-to-commercialize agro-technologiesbeen signed for more than 60 ready-to-commercialize agro-technologies
from different agricultural sectors like crops, horticulture, food technology,from different agricultural sectors like crops, horticulture, food technology,
veterinary, agri-engineering, agri-inputs and fisheries.veterinary, agri-engineering, agri-inputs and fisheries.
The Abu Dhabi-based Al Dahra International Investment LLC is set to investThe Abu Dhabi-based Al Dahra International Investment LLC is set to invest
about Rs 112 crore (US$ 16.61 million) in Kohinoor Foods Ltd (KFL).about Rs 112 crore (US$ 16.61 million) in Kohinoor Foods Ltd (KFL).
Private equity (PE) and venture capital (VC) firms invested US$ 126 millionPrivate equity (PE) and venture capital (VC) firms invested US$ 126 million
across nine Indian agri-business companies during the first six months ofacross nine Indian agri-business companies during the first six months of
2013, as per data from Venture Intelligence.2013, as per data from Venture Intelligence.
Coromandel International Ltd, India's leading fertilizer manufacturer, with itsCoromandel International Ltd, India's leading fertilizer manufacturer, with its
joint venture (JV) partners have inaugurated a 1.4 million tone (MT)joint venture (JV) partners have inaugurated a 1.4 million tone (MT)
phosphoric acid plant in Tunisia.phosphoric acid plant in Tunisia.
The Indo-Dutch joint initiative in agriculture envisages setting up about 10The Indo-Dutch joint initiative in agriculture envisages setting up about 10
centres of excellence (CoE) in Punjab, Gujarat, Kerala, Maharashtra andcentres of excellence (CoE) in Punjab, Gujarat, Kerala, Maharashtra and
Karnataka in the next few years, a move that could help raise output andKarnataka in the next few years, a move that could help raise output and
yields.yields.
The total outlay of Rs 27,049 crore (US$ 4.01 billion) has proposed for theThe total outlay of Rs 27,049 crore (US$ 4.01 billion) has proposed for the
Ministry of Agriculture in the Union Budget 2013-14, which is 22 per centMinistry of Agriculture in the Union Budget 2013-14, which is 22 per cent
more than the revised estimates of the year 2012-13. Further, Rs 1,000more than the revised estimates of the year 2012-13. Further, Rs 1,000
crore (US$ 148.38 million) has been allocated to continue support to thecrore (US$ 148.38 million) has been allocated to continue support to the
new green revolution in Eastern States like Assam, Bihar, Chhattisgarh andnew green revolution in Eastern States like Assam, Bihar, Chhattisgarh and
West Bengal to increase the rice production.West Bengal to increase the rice production.
6. An outlay of Rs 500 crore (US$ 74.19 million) is also proposed forAn outlay of Rs 500 crore (US$ 74.19 million) is also proposed for
starting a programme of crop diversification that would promotestarting a programme of crop diversification that would promote
technological innovation and encourage farmers to choose croptechnological innovation and encourage farmers to choose crop
alternatives in the original green revolution States.alternatives in the original green revolution States.
7. GOVERNMENT INITIATIVESGOVERNMENT INITIATIVES --
Some of the major initiatives taken by the Government of India are:Some of the major initiatives taken by the Government of India are:
The Government of India has set a target of 259 million tonnes (MT) ofThe Government of India has set a target of 259 million tonnes (MT) of
foodgrains production in 2013-14. It is implementing various cropfoodgrains production in 2013-14. It is implementing various crop
development programmes/ schemes for achieving production targets ofdevelopment programmes/ schemes for achieving production targets of
various cropsvarious crops
The government has permitted 100 per cent FDI under the automatic route,The government has permitted 100 per cent FDI under the automatic route,
subject to certain conditions in Floriculture, Horticulture, Apiculture andsubject to certain conditions in Floriculture, Horticulture, Apiculture and
Cultivation of Vegetables & Mushrooms under controlled conditions;Cultivation of Vegetables & Mushrooms under controlled conditions;
Development and production of Seeds and planting material; AnimalDevelopment and production of Seeds and planting material; Animal
Husbandry (including breeding of dogs), Pisciculture, Aquaculture, underHusbandry (including breeding of dogs), Pisciculture, Aquaculture, under
controlled conditions; and Services related to agro and allied sectors. 100controlled conditions; and Services related to agro and allied sectors. 100
per cent FDI is also permitted in the tea sector.per cent FDI is also permitted in the tea sector.
For ensuring quality of agrochemicals, the government has set up 71For ensuring quality of agrochemicals, the government has set up 71
pesticides testing laboratories across the country that include 68 statepesticides testing laboratories across the country that include 68 state
laboratories, 2 regional laboratories and 1 central laboratorylaboratories, 2 regional laboratories and 1 central laboratory
The Government of Punjab gave its approval to the expansion plan of state-The Government of Punjab gave its approval to the expansion plan of state-
owned Milkfed entailing setting up of four mega milk plants worth Rs 250owned Milkfed entailing setting up of four mega milk plants worth Rs 250
crore (US$ 37.09 million) each in the statecrore (US$ 37.09 million) each in the state
The government has launched a SMS Portal for Farmers on July 16, 2013The government has launched a SMS Portal for Farmers on July 16, 2013
for disseminating relevant information, giving topical & seasonal advisoriesfor disseminating relevant information, giving topical & seasonal advisories
and providing services through SMSs to farmers in language of the Stateand providing services through SMSs to farmers in language of the State
8. Under the Union Budget 2013-14Under the Union Budget 2013-14
The government has substantially improved the availability of farm credit toThe government has substantially improved the availability of farm credit to
improve investments in the farm sector. The annual agriculture credit targetimprove investments in the farm sector. The annual agriculture credit target
for the financial year 2013-14 has increased to Rs 7 lakh crore (US$ 105.96for the financial year 2013-14 has increased to Rs 7 lakh crore (US$ 105.96
billion) from Rs 5.75 lakh crore (US$ 85.32 billion) in 2012-13billion) from Rs 5.75 lakh crore (US$ 85.32 billion) in 2012-13
The allocation for the Integrated Watershed Programme has been increasedThe allocation for the Integrated Watershed Programme has been increased
to Rs 5,387 crore (US$ 799.37 million) from Rs 3,050 crore (US$ 452.58to Rs 5,387 crore (US$ 799.37 million) from Rs 3,050 crore (US$ 452.58
million) to provide relief to small and marginal farmers especially in droughtmillion) to provide relief to small and marginal farmers especially in drought
prone and ecologically-stressed regionsprone and ecologically-stressed regions
The National Livestock Mission will be launched to attract investment and toThe National Livestock Mission will be launched to attract investment and to
enhance productivity of livestock, taking into account local agro-climaticenhance productivity of livestock, taking into account local agro-climatic
conditions. Rs 307 crore (US$ 45.55 million) have been provided for theconditions. Rs 307 crore (US$ 45.55 million) have been provided for the
MissionMission
9. ROADROAD AHEADAHEAD --
With nearly a 1.2 billion population, India requires a robust, modernizedWith nearly a 1.2 billion population, India requires a robust, modernized
agriculture sector to ensure the food security for its population. In order toagriculture sector to ensure the food security for its population. In order to
meet the food grain requirements of the country, the agricultural productivitymeet the food grain requirements of the country, the agricultural productivity
and its growth needs to be sustained and further improved. The growthand its growth needs to be sustained and further improved. The growth
target for agriculture in the 12th Five Year Plan is estimated to be 4 per centtarget for agriculture in the 12th Five Year Plan is estimated to be 4 per cent
as compared to 3.6 per cent for the 11th Plan.as compared to 3.6 per cent for the 11th Plan.
The Ministry of Agriculture is promoting a new strategy for farmThe Ministry of Agriculture is promoting a new strategy for farm
mechanization through its various schemes and programmes. A dedicatedmechanization through its various schemes and programmes. A dedicated
Sub-Mission on Agricultural Mechanization has been proposed for the 12thSub-Mission on Agricultural Mechanization has been proposed for the 12th
Plan which includes custom-hiring facilities for agricultural machinery as onePlan which includes custom-hiring facilities for agricultural machinery as one
of its major components.of its major components.
10. Exchange rate used:Exchange rate used: IINR 1= US$ 0.0148 as on August 30, 2013 IINR 1= US$ 0.0148 as on August 30, 2013
References:References: The Economic Survey 2012-13, Agricultural and Processed The Economic Survey 2012-13, Agricultural and Processed
Food Products Export Development Authority (APEDA), The Union BudgetFood Products Export Development Authority (APEDA), The Union Budget
2013-14, Press Releases, Media Reports2013-14, Press Releases, Media Reports