Page 32 - AWA Vol.41-No.6 2025

AGRICULTURE EXPORTS

Agriculture Industry In India Market Analysis

The India agriculture market reached USD 452 billion in
2025 and is forecast to rise to USD 563.02 billion by 2030,
translating into a 4.52% CAGR over the period. Strong gov‑
ernment spending, broadened credit access, and rapidly
growing digital infrastructure are combined to lift produc‑
tivity and earnings across commodity segments. Digital
platforms that link 11 crore farmers to formal finance, sub‑
sidies, and advisory services are already cutting transac‑
tion costs and improving price discovery. Robust foodgrain
output of 354 million tons in 2024‑25 reflects favorable
monsoon conditions, higher minimum support prices, and
wider use of improved seed cultivars. Trade reforms that
streamline export certification and expand e-commerce
hubs are widening access to premium overseas buyers, grams. Collaboration with Israel on water-efficient farming
even as import substitution missions target edible oils and and tactical rice exports to food-insecure nations demon‑
pulses deficits. strates the sector’s agility in balancing domestic needs
Government Support Through Subsidies and Policies with global opportunities.
The Union Budget 2025-26 increased the Kisan Credit Card Fragmented Landholdings and Declining Soil Fertility
limit to Rs 5 lakh, unlocking larger working capital lines for Small and marginal farms now cover 85% of holdings, with
smallholders and easing input purchases at critical crop average size falling below 2 hectares, making mechaniza‑
stages. Prime Minister Dhan‑Dhaanya Krishi Yojana chan‑ tion and scale efficiencies difficult without shared-service
nels resources to 100 low‑productivity districts, bundling models. Fertility imbalances persist, with excess nitrogen
irrigation, precision farming training, and risk-mitigation and insufficient phosphorus-potassium inputs weaken‑
tools. Minimum support price adjustments for 2024‑25 fa‑ ing soil structure and raising greenhouse‑gas emissions.
vor oilseeds such as nigerseed and sesamum, encourag‑ The Soil Health Card Scheme has expanded sampling,
ing diversification into high-value crops. Input subsidies, yet state‑level adoption of balanced nutrient application
which account for 73% of the agriculture budget, reduce remains uneven. Custom Hiring Centers that rent tractors
fertilizer and energy costs, creating a positive cycle of in‑ and harvesters mitigate fragmentation constraints, though
vestment, productivity, and rural consumption. coverage gaps underline the need for expanded service
Rising Adoption of Agri-tech and Mechanization networks.
A Rs 6,000 crore allocation for digital agriculture infra‑ Inadequate Cold-Chain and Storage Infrastructure
structure is funding AI‑based crop surveys, drone‑enabled India loses 40% of fresh produce annually, about 40 million
nutrient mapping, and app‑based credit scoring, help‑ tons worth USD 13 billion because only 4% of perishables
ing farmers access formal loans within 24 hours. National move through integrated cold chains. Operating costs for
mechanization now stands at 47%; Punjab and Haryana cold stores exceed Western norms due to high energy tar‑
exceed 40-45%, while northeastern states remain largely iffs, limiting smallholder access. The Government plans to
manual, revealing significant headroom for expansion. The invest USD 15 billion over five years, prioritizing renew‑
farm machinery market is forecast to grow from USD 16.73 able‑powered facilities and refrigerated container fleets
billion in 2024 to USD 25.15 billion by 2029, driven by labor that could cut losses by up to 35%. Roughly 20,000 refrig‑
scarcity and better cash flows. Precision tools can boost erated containers valued at USD 0.53 billion are required to
yields by 30% and cut water and fertilizer use by 15-20%, match supply with horticulture output, signaling a sizeable
improving profitability and resource efficiency. opportunity for logistics providers.
Growing Demand for Organic and Sustainable Farming By Commodity Type: Cereals and Grains Accelerate,
Urban consumers are fueling a projected 25.25% CAGR While Fruits and Vegetables Show Growth Potential
for certified organic products through 2027, rewarding Cereals and grains controlled 49.50% of the India agricul‑
farms that adopt pesticide‑free practices and traceabil‑ ture market in 2024. The India agriculture market size for
ity systems. Carbon-credit programs in eight states have cereals is projected to advance steadily at the sector’s av‑
issued the country’s first farm-generated credits, deliver‑ erage CAGR, helped by expanded irrigation and mecha‑
ing a new income stream for regenerative growers. Policy nized harvesting. Pulses and oilseeds remain vulnerable to
support for natural farming is deepening, with budget in‑ yield fluctuations, prompting a Mission for Aatmanirbharta
centives for bio‑inputs and AI‑guided nutrient applications in Pulses to foster self-sufficiency. Targeted subsidies, cli‑
that protect soil microbiomes. Community seed banks pre‑ mate‑resilient varieties, and integrated pest‑management
serve climate‑resilient indigenous varieties, diversifying programmes are projected to stabilize these sub‑segments
genetic resources while reinforcing farmer rights. over the forecast horizon.
Expanding Export Demand via New Trade Agreements Fruits and vegetables form the fastest‑growing slice of the
Agricultural exports climbed 6.5% year-on-year to USD India agriculture market, projected to clock a 7.80% CAGR
37.5 billion for April-December 2024, defying global vol‑ through 2030 as urban diets diversify and export orders
atility. The Foreign Trade Policy 2024 promotes USD 2 tril‑ climb. Horticulture output rose to 355.2 million tons in 2023‑
lion total exports by 2030, positioning agri-produce as a 24, including 112.62 million tons of fruit and 204.96 million
flagship contributor through simplified digital documen‑ tons of vegetables. Targeted subsidies, climate‑resilient
tation and warehousing corridors. Spices recorded 51.01% varieties, and integrated pest‑management programmes
growth, and coffee showed 40.3% growth in March 2024 are projected to stabilize these sub‑segments over the fore‑
shipments, aided by targeted quality and branding pro‑ cast horizon. Circle 49 on enquiry card
30 Vol. 41 No. 6