Snapshot

Continuing the upward trend, agricultural exports rose by 6.04 % to $ 40.90 Bn during the financial year (Apr. 2022 – January 2023), in comparison with the corresponding period of FY 2021-22.

Wheat exports have touched an all-time high of $1,508 Mn in April-December 2022 up from the previous high of $1,452 Mn in April-December 2021.

The growth in the agriculture sector is likely to remain buoyant, supported by healthy progress in Rabi sowing, with the area sown being higher than the previous year. Other cereals’ exports increased from $ 764 Mn in April-December 2021 to

nbsp;869 Mn in April-December 2022 and the export of milled products increased from $ 188 Mn in April-December 2021 to
nbsp;255 Mn in April-December 2022—registering a growth of 35.71%.

Fiscal policy statements highlighted that the Indian agriculture sector is projected to grow by 3.5% in FY 2022-23. Apart from meeting domestic requirements, India has also rapidly emerged as a net exporter of agricultural products in recent years. With the agriculture exports touching $50.2 Bn in FY 2022-23. The total Kharif food grain production in the country is estimated at 149.9 million tonnes.

As per Second Advance Estimate for 2022-23, Total Food grain production in the country is estimated at record 3,305.34 Lakh Tonnes which is higher by 149.18 LMT as compared to the previous year 2021-22.Rice production during 2022-23 is estimated at (a record) 1,355.42 LMT. It is higher by 60.7 Lakh Tonnes as compared to the previous year. The production of Wheat (record) is estimated at 1127.43 LMT which is higher by 50.01 LMT as compared to the previous year’s production. Production of Maize in the country during 2022-23 is estimated at (record) 359.13 Lakh Tonnes which is higher by 21.83 lakh tonnes than the previous year’s production of 337.30 Lakh Tonnes. Production of Nutri / Coarse Cereals is estimated at 547.48 Lakh Tonnes which is higher by 36.47 Lakh Tonnes than the previous year’s production.

The production of Moong is estimated at a new record of 37.40 LMT which is higher by 5.74 LMT as compared to the previous year’s production. Total Pulses production during 2022-23 is estimated at 275.04 Lakh Tonnes which is higher by 2.02 Lakh Tonnes than the previous year’s production of 273.02 LMT. The production of Soybean and Rapeseed & Mustard is estimated at 149.76 LMT and 124.94 LMT respectively, which is higher by 19.89 LMT and 5.31 LMT respectively than the production of the previous year 2021-22. Total Oilseeds production in the country during 2022-23 is estimated at record 409.96 Lakh Tonnes which is higher by 30.33 Lakh Tonnes than the previous year’s oilseeds production.

The total production of Sugarcane in the country during 2022-23 is estimated at a record 4,942.28 Lakh Tonnes. The production of sugarcane during 2022-23 is higher by 293.65 Lakh Tonnes than the previous year’s production.

Production of Cotton is estimated at 343.47 Lakh Bales (of 170 kg each) and production of Jute & Mesta is estimated at 94.94 Lakh Bales (of 180 kg each)

 

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    Milk production in the world contributing 24% of global milk production

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    Producer of millet in the world with an area of 15.48 million hectares under cultivation.

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    Producer of Sugar

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    Number of organic farmers and 4th in terms of area under organic farming

India is the largest producer in the world of milk, cashew nuts, coconuts, tea, ginger, turmeric and black pepper, and coffee.

Globally, India is the second largest producer of fruits and vegetables, rice, wheat, groundnuts, cashew, and tea, and accounts for 10% of the world’s fruit production with first rank in the production of bananas and sapota.

374.25 lakh MT Cold Chain capacity

Industry Scenario

According to the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the exports of agricultural and processed food products rose by 13 % in the nine months of the Financial Year 2022-23 (April-December) in comparison with the corresponding period of FY 2021-22.

According to the provisional data released by the Directorate General of Commercial Intelligence and Statistics (DGCI&S), the exports of agricultural and processed food products rose by 6.04% in the Financial Year 2022-23 (April-January) in comparison with the corresponding period of FY 2021-22.

In April-December, 2021, fresh fruits were exported to the tune of $1,078 Mn which increased to

nbsp;1,121 Mn in the corresponding months of the fiscal year 2022-23. Exports of processed F&V jumped to $1,472 Mn in nine months of FY 2022-23 from $1,129 Mn in the corresponding months of the previous year.

India is the largest producer as well as the largest exporter of cereal products in the world. Basmati Rice exports witnessed a growth of 40.26% in nine months of FY 2022-23 as its export increased from $2,379 Mn (April-December 2021) to $3,337 Mn (April-December 2022), while the export of non-Basmati rice registered a growth of 4 percent in nine months of previous fiscal. Non-basmati rice export increased to $4,663 Mn in nine months of the fiscal year 2022-23 from $4,512 Mn in the corresponding months of the fiscal year 2021-2022.

The export of pulses has witnessed an increase of 80.38% in nine months as the export of lentils increased from $242 Mn (April-December 2021-22) to $436 Mn (April-December 2022-23).

Organic Products:

India has the highest number of organic farmers in the world at 44.3 Lakhs, and 59.1 Lakh ha area has been brought under organic farming by 2021-22, producing certified organic products including all varieties of food products namely Oil Seeds, fiber, Sugar cane, Cereals & Millets, Cotton, Pulses, Aromatic & Medicinal Plants, Tea, Coffee, Fruits, Spices, Dry Fruits, Vegetables, Processed foods, etc. The production is not limited to the edible sector but also produces organic cotton fiber, functional food products, etc.

Union Budget 2023 Highlights:

  • INR 20 Lakh Cr: Agricultural Credit Target with a focus on Animal Husbandry, dairy and fisheries sector.
  • Aatmanirbhar Bharat Horticulture Clean Plant Program: Outlay of INR 2200 Cr to promote high-value horticulture crops.
  • Agricultural Accelerator Fund: To be setup to promote startups in rural India.
  • Provision of INR 60,000 cr has been made for the Pradhan Mantri Kisan Samman Nidhi (PM-Kisan).
  • Provision of INR 450 Cr has been made for the Digital Agriculture Mission started by the Modi Government, and about INR 600 Cr allocated for the promotion of Agriculture sector through technology.
  • The government will launch a sub-scheme under PM Matsya Sampada Yojana with an outlay of INR 6,000 Cr.

GROWTH DRIVERS

  • Demand-side drivers

    Population and income growth creates new opportunities for farmers and businesses to expand and innovate also the growing demand for food and agricultural products is encouraging the sector to adopt new technologies and practices, move up the value chain, and explore new markets both domestically and internationally.

  • Urbanisation

    Drives demand for agricultural products and creates opportunities for innovation in the sector, with new technologies like vertical farming and hydroponics improving productivity and efficiency.

  • Increasing exports

    Increasing exports have opened up new markets and supply chains for Indian farmers and businesses. This has increased competitiveness in the sector and encouraged innovation and expansion.

  • Supply-side drivers

    Hybrid and genetically modified seeds, a Favourable climate for agriculture and a wide variety of crops, technologically advanced irrigation infrastructure, the Green Revolution in Eastern India which intends to address the constraints limiting the productivity of “rice based cropping systems” in eastern India and an increase in climate-smart agricultural practices.

  • Policy support

    Growing institutional credit, Increasing MSP, Increase in the procurement from farmers, Introduction of new schemes like Paramparagat Krishi Vikas Yojana, Pradhanmantri Gram, Sinchai Yojana, and Sansad Adarsh Gram Yojana, Inception of Agri Infrastructure Fund, Creation of a Start-up Ecosystem in agriculture and allied sector, promotion of agricultural mechanization and subsidy for machines and supports drones.

  • Logistics support

    Initiatives like Kisan Rath (mobile app for farmers, FPOs, and traders), 200+ Kisan Rails, and Krishi Udaan Scheme for produce transportation, Perishable Cargo Centres, cold storage facilities at Airports and Inland Container Depots as well as cargo terminals and warehouses.

  • Digital Transformation

    e-NAM is a digital platform integrating 1260 APMC mandis across 22 States and 3 UTs to facilitate online trading of 203 agriculture and horticulture commodities to enable farmers to realize better remunerative prices for their produce. e-NAM is catalysing the digital transformation of mandi operations and e-trading of agricultural commodities. As of 31.12.2022, more than 1.74 Cr farmers & 2.39 Lakh traders have been registered on the e-NAM portal. A total trade consisting of 69 mn metric tonnes amounting to INR 2.42 lakh cr has been recorded on the e-NAM platform.

  • Changing Consumer Preferences

    Consumers in India are increasingly looking for organic and locally sourced produce, creating opportunities for small-scale farmers to enter the market and differentiate their products from those of larger agricultural corporation

  • Krishi Nivesh

    The government started the development of the Agriculture Investment Portal named “Krishi Nivesh” on 5th Dec 2022 to boost the agriculture investment in the country. The portal is under development. Krishi Nivesh Portal is being developed as an Integrated, centralized one-stop Portal for all Agri-investors to avail benefits from various Government schemes.

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FAQs

Frequently
Asked Questions

What is the Agricultural Marketing Infrastructure scheme?

It is common knowledge that there is a need to promote agriculture marketing infrastructure projects for reducing the involvement of intermediates and minimizing post-harvest losses. A robust agriculture marketing infrastructure will ensure better remuneration to farmers and supply of better quality products to consumers and processing industries. During the XII plan period, the estimated investment for marketing infrastructure and value chain development was $ 8.61 billion .

To address this need, the Department of Agriculture and Cooperation (DAC), Govt. of India has introduced the Agricultural Marketing Infrastructure (AMI) Scheme by merging the earlier GrameenBhandaranYojana (GBY) and the Scheme for Development/Strengthening of Agricultural Marketing Infrastructure, Grading and Standardization (AMIGS).

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What is agricultural biotechnology?

Agricultural biotechnology is an advanced technology that allows plant breeders to make precise genetic changes to impart beneficial traits to the crop plants we rely on for food and fiber.

For centuries farmers and plant breeders have labored to improve crop plants. Traditional breeding methods include selecting and sowing the seeds from the strongest, most desirable plants to produce the next generation of crops. By selecting and breeding plants with characteristics such as higher yield, resistance to pests and hardiness, early farmers dramatically changed the genetic make-up of crop plants long before the science of genetics was understood. As a result, most of today's crop plants bear little resemblance to their wild ancestors.

The tools of modern biotechnology allow plant breeders to select genes that produce beneficial traits and move them from one organism to another. This process is far more precise and selective than crossbreeding, which involves the transfer of tens of thousands of genes, and provided plant developers with a more detailed knowledge of the changes being made.

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What are the benefits of Farmers Produce Trade and Commerce (Promotion & Facilitation) Act, 2020?

This Act empowers farmers to freely sell their produce from farm gate directly to the buyers/exporters/processors/retailers who are offering better prices as alternative to APMC Markets without paying any market fee in trade area. It will help to reduce transportation cost of farmers produce from the farm gate to the mandis. It will also help in reducing post-harvest losses. The farmers can now store their produce in warehouses after harvest and sell it directly from such warehouses at appropriate time at suitable prices without bringing the produce to APMC Markets for selling.

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Under Farmers Produce Trade and Commerce (Promotion & Facilitation) Act, 2020, corporate companies are also becoming entity as ‘farmer’?

Corporate companies are not included in the definition of farmer in this Act. Only Farmer Producers Organizations (FPOs), which are registered under any law, are included under the definition of farmer apart from individual farmers.

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What are the payment procedures for FPO or Agricultural Cooperative Society under Farmers Produce Trade and Commerce (Promotion & Facilitation) Act, 2020?
  • An FPO or an agricultural co-operative society shall make payment to the farmer immediately after sale, but not later than fourteen days from the date of aggregation or purchase subject to the condition that the receipt of delivery shall be given to the farmer on the same day.
  • When FPO aggregates or buys the scheduled farmers’ produce from farmer in the trade area and sells such produce in raw form itself, it shall make the payment immediately after such sale, but not later than three days from the date of aggregation or purchase, if procedurally so required, subject to the condition that the receipt of delivery shall be given to the farmer on the same day.

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