1
Making India the
Global Food Hub
July 2024
Key Imperatives
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FOREWORD
The socio-economic and demographic landscape of India has undergone profound changes, catalysed by
rapid urbanisation, robust economic growth, and evolving societal dynamics. These changes have significantly
influenced dietary preferences and food consumption patterns across the country. India’s spend on food is
reflected in MOSPI’s Monthly Per Capita Expenditure data, revealing that Indian rural and urban households
allocate 46% and 39% of their overall budget to food respectively. Out of this food related expenditure, the
maximum spend is towards high value food items such as -beverages and processed food (including purchased
cooked meals); fruits and vegetables; and milk and dairy products.
On the supply side, while India is amongst the largest producers of agricultural produce, challenges persist
across the agricultural value chain, affecting efficiency, sustainability, and overall economic resilience of the
sector. Factors such as low farm-level productivity, inadequate post-harvest handling infrastructure, high
logistics cost, low levels of food processing and lack of alignment with international market requirements hinder
India’s true potential to serve as a global food hub. There is an imminent need for strategic interventions to
enhance efficiencies, reduce wastage, and ensure equitable distribution of benefits across the agricultural value
chain.
Keenly aware of the existing challenges and imperatives to overcome them, the Government of India has taken
up significant initiatives to boost the growth of food and agriculture sector in the country. Significant efforts have
been put in for developing an end-to-end support system that supports enhancement of farm productivity and
farmer incomes, link farmers to markets, promote value addition and exports, foster sustainability and climate
action; and enable ease of doing business.
The role of the private sector in boosting growth and development of the food and agriculture sector has
been pivotal. Through investments in research, technology, infrastructure, and sustainable practices, private
enterprises are not just contributing to sectoral growth but also aligning their strategies with changing
consumer demand and global sustainability benchmarks. Efforts are needed to further boost private sector
interventions in the sector, through promoting private investment in agriculture research and extension services,
supporting introduction of innovative technologies, promoting farmer-level sustainability initiatives, incentivising
investment in agri infrastructure, and creating an enabling policy environment including for exports.
YES BANK is sincerely committed to playing a catalytic role in the development of Indian food and agriculture
ecosystem, not just by serving as a trusted banking partner but also by working alongside private sector,
multilateral institutions, government and industry associations for assimilation and propagation of knowledge
that contributes to sustainable growth of this ecosystem. Towards this endeavor, YES BANK is pleased to
partner with AMCHAM to release this Knowledge Report titled “Making India the Global Food Hub – Key
Imperatives”. This report provides an overview of the evolving food demand trends in India and the agriculture
sector’s response to these evolving demand trends. It highlights India’s innate potential to become the
global food hub, identifies specific bottlenecks hindering growth, and suggests select interventions that, if
implemented will significantly boost sustainable growth and development of the Indian food and agriculture
sector. I sincerely hope that this report will serve as a reference document to inspire actions and pave the way
for transformative changes that will position India as the Global Food Hub.
Prashant Kumar
Managing Director & CEO
YES BANK
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FOREWORD
As India embarks on the journey to become a $5 trillion economy, the role of agriculture and food production
emerges as a cornerstone of this journey. With a population exceeding 1.4 billion, India’s agricultural sector not
only sustains millions but also presents a vast opportunity to contribute significantly to the global food supply
chain.
India is in her Amrit Kaal phase, and under the leadership of the Hon’ble Prime Minister, the vision of Viksit
Bharat aims to propel India to greater heights on the global stage. The agriculture and food sectors serve as
prime pillars of the Indian economy and fundamental in ensuring food and nutritional security of the nation. The
sectors are presently undergoing a technological revolution which is elevating the entire food supply chain. U.S.
companies in India have always established themselves as strategic partners and contributors to the Indian
agriculture and food processing sector. The two nations can collaborate to promote win-win agriculture that
could address global food challenges. Tremendous opportunities are available for mutual collaboration in the
field of AgTech, science and technology, R&D, information exchange, trade and sustainable climate solutions.
U.S. industry has the technology and resources to convert potential into tangible outcomes.
With evolving consumer preferences and increased use of technology, the imperative to exploit India’s vast
potential in the twin sectors of agriculture and food processing has catapulted. With diverse climatic conditions
across the country, a substantial work force, emerging technologies and the ever-evolving policy environment,
India is on track to enhance the country’s global market presence in agriculture. New cutting-edge digital
practices and models that effectively link farmers to markets are just a couple ways industry has championed
the focus on sustainability in the sector.
Some challenges remain, such as inadequate feed and fodder availability that prevent more growth across the
agricultural supply chain. Pre-harvest infrastructure deficiencies which lead to substantial food wastage impacts
farmers, as well as the ability for India to climb even higher in exports. There is a need to harmonize food quality
benchmarks with international standards.
The Government of India has taken a number of initiatives that aid towards productivity and enhancing farmers’
income, linking farmers to markets, boosting exports, fostering innovation and technology, among others.
U.S. companies have been significant partners in the growth of these sectors and are committed to bring the
best technology while continuing to gainful employment. U.S. industry in the agriculture and food processing
sector will continue to collaborate with agri-tech start-ups, use technology to map challenging weather, provide
apps with training for farmers, reduce water usage across the supply chain and use AI and machine learning to
increase crop yields, among other initiatives, that all contribute to making India the global food hub.
Ms. Ranjana Khanna
Director General CEO
AMCHAM India
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Table of Contents
Executive Summary
09
1
Food transformation and response of agriculture
14

1.1
Food demand trends in India: The transformation
14

1.2
Response of Agriculture to the changing demand
16

1.3
Role of food processing industry
20

1.4
India’s contribution to global trade
21
2
India’s innate potential to serve as a global food hub
23

2.1
India’s strengths in Agriculture
23

2.2
Factors driving sustainable growth of Indian Agriculture
25
3 Bottlenecks across agricultural supply chain challenging growth
29

3.1
Farm level
29

3.2
Post harvest handling
30

3.3 Manufacturing/ Processing and value addition
30

3.4
Exports
31

3.5
Regulatory
32

3.6
Others
32
4 Key imperatives to boost sustainable growth
33

4.1
Key imperatives
33

4.2
Government initiatives to address the imperatives
36

4.3
Role of private sector in sustainable growth of Agriculture
37
5
Interventions for boosting private sector contribution
40

5.1
Promoting private investment in agriculture research & extension
40

5.2
Supporting introduction of innovative technologies and products
41

5.3
Promoting farmer level sustainability initiatives
42

5.4 Continuing incentivizing investment in storage, logistics and processing
infrastructure and providing an enabling policy environment
43

5.5
Facilitating exports
43

5.6
Others
45
6 References

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7 Abbreviations
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Executive Summary
India’s Agricultural landscape is diverse and complex, shaped by a variety of factors including geography, climate,
culture and technology. The sector is one of the prime pillars of Indian economy and fundamental to ensuring food
and nutritional security of the nation.
the same period, proportion of urban population to total population increased from 28% to 36% and the per capita
net national income witnessed an increase of over 139% (between 2001-02 and 2022-23), impacting and shaping
the way people eat and spend on food.
According to the FAO-OECD estimates, India is set to surpass China as the primary driver of global food demand
over the next decade. While China contributed to 28% of the demand increase over the past ten years (until 2023),
this figure is projected to fall to 11% in the coming decade. Conversely, India’s share is expected to rise from 13%
to 20%. This forecast is based on anticipated population decline and stagnating incomes in China, compared to
population growth and improving living standards in India.
A review of the Monthly Per Capita Expenditure (MPCE) data (2022-23) published by the Ministry of Statistics
and Program Implementation (MoSPI) indicates that Indian rural and urban households spent 46% and 39% of
their overall budget on food respectively. Interestingly, out of this total food expenditure done by both, urban and
rural consumers, the maximum spend is on beverages and processed foods (including purchased cooked meals),
followed by fruits & vegetables, and milk & milk products. For the first time, the share of beverages and processed
food (including purchased cooked meals) in the total spending of rural Indian households has crossed that of
cereals.
Source: PIB, Department of Agriculture and Farmers welfare, United Nations
GVA of agriculture
stood at 18.3% in
2022-23
Over 1,000
agritech start-ups
contributing to the
growth story
Feeding a
massive 1.43
billion population
>75% of rural
female workers
employed in
agricultural
sector
Contributed USD
53.1 Bn to the
exports earning
(2022-23)
Employs
nearly half of
workforce
In recent decades, Indian agriculture has witnessed
notable progress propelled by various private &
public initiatives and policy measures. This positive
momentum
is multifaceted and spans across
production, productivity, diversification, value addition
and exports, showcasing a comprehensive uplift of the
sector.
India has also witnessed significant evolution
in
its socio-economic and demographic profile.
Rapid urbanization, economic growth and social
transformations have played key roles in shaping this.
This evolution has had a significant impact on the
food consumption basket of India. Over the last two
decades (2002-22), India’s population increased by
about 30%, driving food demand significantly. During
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The MPCE trend analysis (2011-12 and 2022-23) also reflects a notable growth in the per capita spend on high value
products such as beverages and processed food, fruits & vegetables, milk & milk products, outpacing the growth
of cereals and pulses, in both urban and rural areas. In line with these dynamic shifts in consumer preferences,
Indian agriculture as well as the food processing industry have responded well by reshaping production, embracing
diversification and offering a wide array of food choices to consumers. Chapter 1 of this report captures these
food transformations and the role and response of agriculture and food processing sectors therein. This chapter
captures an analysis of the Gross Value of Output (GVO) of various agricultural sub-sectors (2022-23), which
indicates that the GVO of animal products has surpassed that of food grains and sugar crops, growing at a rate of
12% (CAGR from 2012-13 to 2022-23), as compared to 8% growth in foodgrains & sugar crops, during the same
period. Spices and condiments witnessed the highest growth (17%), followed by fisheries & aquaculture (15%)
and fruits and vegetables (10%). This increase in output has been driven by increase in production, productivity,
area under cultivation and irrigation across key sub sectors. The surplus production has not only helped meet
the demand of growing population and changing dietary preferences, but has also contributed to increased food
processing and global trade.
The food processing industry has also dynamically responded to consumer demand and expenditure trends by
continuously innovating to offer meals, snacks, beverages and convenience foods that save time and cater to
the busy lifestyles of consumers. There has also been a clear emphasis on healthier processed foods and safety
standards for which the food processing companies have been investing in advanced processing technologies and
quality control measures. This has not only increased processing levels in India, but also enhanced the country’s
global market presence. While India’s agri exports reached USD 53 Bn in 2022-23, contribution of processed food
accounted for an impressive 25% of this total.
The future, however, will demand more. A diverse set of macrotrends are redefining the ask from Indian agriculture.
Chapter 2 of this report captures these macrotrends and highlights India’s strengths and factors that collectively
contribute to making India one of the world’s leading agricultural nations. On the consumption front, food demand
is intensifying, and the changing demographics are impacting buying and consumption patterns, driving demand
for convenience food, healthier alternatives, sustainably grown products and aspirational food choices. As per
the latest United Nations’ estimates, India’s population surpassed that of China, reaching 142.86 crores in 2023
and is projected to reach 166.8 crores by 2050. Urbanization is expected to increase from the present 36% to
nearly 52% by 2050. To meet this growing demand, food production will need to increase significantly. Food grain
production will need to increase from current levels of 309 Mn MT (2022-23) to 400 Mn MT by 2050 while fruits
and vegetables production will need to grow from 323 Mn MT (2022-23) to over 650 Mn MT by 2050. For a food
secure future, a transformational jump in productivity, bringing efficiencies in food chain and value addition will
remain critical.
While India’s productivity for major categories has shown marked improvement in the past decades, the
opportunity for further improvement is immense. India’s productivity of various food categories when compared
to other countries stands much lower, indicating a wide gap that can be filled with improved technology and good
agricultural practices.
This chapter of the report also highlights India’s strengths and factors that collectively contribute to making India
one of the world’s leading agricultural nations. India currently produces more than 1 billion MT of crops and is
the second largest producer of crops in the world. India also possesses the largest livestock population making
it the largest milk producer globally. Diverse climatic conditions, substantial labour force, emerging technological
advancements and conducive policy environment are some of the key aspects that are collectively contributing
to building a robust agricultural sector in India. This chapter captures key factors that are propelling sustainable
growth of the agricultural sector- including growing demand for nutritious food, adoption of new technologies
& digital practices, evolving farmer-market linkage models, proactive & supportive policy ecosystem, growing
private sector participation and increasing focus on sustainability.
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Chapter 3 of the report delves into various bottlenecks impeding growth across the agricultural supply chain,
encompassing challenges from farm level, to post harvest management, processing, value addition and exports. At
the farm level, challenges include low productivity and poor financial viability of farms, inadequate access to high-
quality seeds and genetic stock, crop loss due to pests, limited adoption of advanced agricultural technologies and
lack of awareness and access to effective natural resource management practices amongst others. Like crops,
dairy sector also suffers from low productivity levels, largely on account of inadequate feed and fodder availability,
limited reach of modern veterinary care and low Artificial Insemination coverage. For poultry, the ground level
challenge remains on the availability and high cost of feed, improper breeding conditions, lack of awareness on
usage of unwarranted substances in feed and frequent disease outbreaks.
Post-harvest infrastructure deficiencies contribute significantly to inefficiencies in the agricultural supply
chain. Inefficient post-harvest handling practices exacerbate losses. From improper sorting and packaging to
inadequate storage facilities, these shortcomings lead to a substantial percentage of the harvested crops being
wasted or degraded before reaching consumers. This not only impacts farmers’ incomes but also contributes
to global food loss and wastage. On the processing front, processing levels remain low, that stem from various
challenges, including the absence of economically processable varieties and underutilized processing capacities.
Also, inadequate testing capabilities complicate quality assurance and compliance with standards.
For exports, tariff and non-tariff barriers, combined with a lack of alignment with international market needs, pose
significant challenges. Logistics cost in India is 30-40% higher than global benchmark, adding to overall costs and
impacting competitiveness. Regulatory challenges with respect to technology registrations, product approvals,
ad hoc bans and differential taxation also impact efficiency and overall profitability of the agricultural and food
processing sector.
To overcome these challenges, it is essential that public and private sector stakeholders focus on certain key
imperatives that can boost sustainable growth of the Indian agriculture. Chapter 4 of this report captures these
key imperatives, which include:
•
Productivity & farmer income enhancement - The interplay between enhanced productivity, increased
income, and sustainability drives long-term growth in the agricultural sector. It not only benefits farmers
directly but also has ripple effects on broader economic, social, and environmental aspects, making it a key
imperative for sustainable development.
•
Linking farmers to markets - Efficient market linkages contribute to a more streamlined supply chain,
resulting in reduced post-harvest losses, ensuring that more produce reaches consumers, reducing wastage,
and enhancing overall sustainability. Farmers, when linked to markets, also align their crop planning with
market demand. Direct market access also provides opportunities for value addition to agricultural products.
•
Value addition & Exports - Value addition and exports play crucial roles in boosting sustainable growth of
Indian agriculture. India aims to take its agricultural exports to USD 100 Bn by 2030. The growing production
base, diversification, increasing focus on sustainability, regulatory ease and policy thrust is expected
to enable India achieve its ambitious agri export target. This will also warrant a strategic shift towards
exporting value added products including organic food products, ready to eat products, Indian traditional
food products, superfoods, millet based processed products, nutraceuticals among others.
•
Technology and Innovation - Technology and innovation are fundamental for transforming Indian agriculture
into a sustainable and resilient sector. Technological advancements, such as precision farming, automated
machinery, new chemistries and improved irrigation systems, significantly increase agricultural productivity.
12
Innovations in agriculture technology enable more precise resource management. This leads to reduced
wastage, conserving water, minimizing environmental impact, and making agricultural practices more
sustainable in the long run.
•
Sustainability & Climate Action - Integrating sustainability and climate action into agriculture is essential
for mitigating climate risks, preserving resources, ensuring food security, and fostering the long-term
growth and resilience of the agricultural sector.
•
Ease of Doing Business - A progressive, predictable and science-based policy and regulatory environment
facilitates ease of doing business and is essential for driving growth, fostering innovation, and ensuring the
sustainability of the sector. It empowers farmers and agribusinesses to navigate challenges more effectively
and seize opportunities for development and prosperity.
This chapter also highlights various initiatives taken by the Government towards productivity and farmer income
enhancement (through schemes like Pradhan Mantri Krishi Sinchai Yojana, Pradhan Mantri Fasal Bima Yojana),
linking framers to markets (E-nam, Agri Infrastructure Fund), boosting value addition and exports (PLI, AHIDF,
Agri export Policy), fostering technology and innovation (Atal Innovation Mission), focusing on sustainability and
climate change (National Mission for Sustainable Agriculture, Green Credits Program) and propelling ease of doing
business (Make in India, direct beneficiary transfers, Digital India).
Private players are also playing an active role in sustainable growth and development of Indian agriculture by
working towards technology introductions, farmer extension services, market linkage initiatives and investments
in post-harvest handling and processing infrastructure. This work has direct impact on at least 12 of the 17
Sustainability Development Goals if not more. A brief on activities that are being undertaken by the corporates
and SDGs impacted have also been captured.
The concluding chapter puts forth various interventions that can boost private sector contribution to Indian
agriculture. These include:
Promoting private investment in agriculture research & extension
The Government may evaluate tax incentives, grants, and subsidies to encourage private companies to invest
in agricultural R&D and extension services. Simplifying regulatory processes for obtaining approvals related to
agricultural research and extension activities, reducing bureaucratic hurdles for private entities and ensuring
transparency and clarity in regulations to boost confidence among private investors in the food and agriculture
sector. There is also a requirement to create knowledge sharing platform for information exchange and
collaboration between private and public stakeholders including collaboration with research institutions. This may
also include facilitating inter country (Indo-US) collaboration on topical issues including climate smart agriculture.
Supporting introduction of innovative technologies and products
A streamlined and digitized approach with a focus on protecting intellectual property rights (IPRs) may be
implemented. Simplifying and expediting the licensing, registration, and approval process for introducing new
agricultural technologies, single window system for submitting and processing licensing and registration
applications can be a great step towards promoting efficiency and accessibility.
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Promoting farmer level sustainability initiatives
Promoting farmer-level sustainability initiatives requires a dexterous approach. Incentivizing regenerative
agricultural practices, building a carbon credit ecosystem that can reward farmers for sequestering carbon, reducing
greenhouse gas emissions, and encouraging farmers to participate in recognized sustainability certification
programs are some of the key initiatives toward promoting farmer-level sustainability initiatives.
Incentivizing investment in storage, logistics and processing infrastructure and
providing an enabling policy environment
Extending successful Public Private Partnership models, incentivizing the establishment of cold chain and
processing infrastructure to reduce post-harvest losses and streamlining the process of land allocation and land
conversion for processing facilities are some of the measures that may attract significant private investments in
this sector. An approach of providing customized incentives and support mechanism for different commodities
can help mitigate the commodity specific challenges. A re-evaluation of the taxation slabs and inclusion of
important sectors under key schemes like PLI can help boost food processing industry significantly. Collaborating
with academic institutions and private sector partners to explore innovative solutions can enhance efficiency and
reduce costs in the storage and processing of agricultural commodities.
Facilitating exports
To facilitate exports, there is a need to harmonize the food quality benchmarks with international standards.
Government-to-Government (G2G) equivalence agreements, preferential rates and non-tariff barriers need to be
continuously negotiated upon. Strengthening laboratories and testing facilities, conducting training programs for
exporters, providing guidance on compliance with international standards and regulations can help exporters in
taking informed decisions. Other approaches like developing targeted branding campaigns for Indian-produced
products in specific destination markets and investing in market intelligence capabilities to understand the specific
requirements and preferences of target destination markets can be very helpful to exporters.
14
Food transformation and
response of agriculture
1.1 Food demand trends in India: The transformation
Over the past few decades, India has undergone profound changes in its socio-economic and demographic
landscape. Besides growth in population and urbanization, the country has experienced significant GDP growth,
fueled by reforms, investments, and a burgeoning middle class. Over the last two decades (2002-2022), India’s
population increased by about 30%, driving the food demand significantly. During the same period, proportion of
urban population to total population increased from 28% to 36%1 . The per capita net national income witnessed
an increase of over 139% (between 2001-02 and 2022-23)2. Social transformations have accompanied these
changes, influencing various aspects of Indian society. Education levels have risen, leading to greater awareness
and aspirations among the population. Technological advancements have facilitated connectivity and access to
information, transforming communication and lifestyle patterns. Demographically, India has experienced shifts in
its population dynamics as well. India remains a youthful nation with a large proportion of its population under the
age of 35. India’s evolving socio-economic and demographic profile, is impacting and shaping the way people eat
and spend on food.
1 Censusindia.gov.in, UN data (2021 population)
2 Per capita net national income at constant prices as per NSSO
Population, urbanization and
increasing per capita income
Population,
urbanization
and increasing per capita
income
Changes in agricultural practices and supply chain
dynamics also impact the availability and affordability of
food items, influencing consumption patterns.
While traditional diets still hold significance, there is a coexistence of traditional and modern
dietary elements, showcasing a blend of cultural heritage and contemporary influences.
Rising health consciousness has prompted a greater emphasis on food safety, nutrition and wellness.
This is reflected in increased consumption of organic and healthier food choices like millet based
products, low/no sugar beverages, high protein/low crab products etc. Moreover, clean labelling and
true claims have become important for consumers.
Mindful sourcing, sustainability and traceability have increasingly become an important consideration
during food purchase for many consumers.
Exposure to global cuisines, either through travel or media, has broadened culinary preferences. This
is seen in the growing popularity of international cuisines and fusion food.
Urban lifestyles, characterized by hectic schedules and
changing work dynamics, have contributed to an increased
reliance on ready-to-eat and fast-food options.
Factors impacting food demand
1
15
Source: censusindia.gov.in, data.worldbank.org, economic survey 2022-23,
*Per capita net national income at constant prices as per NSSO & 2022-23 data is 1st Adv. est.
110
142
2002
2022
30%
139%
Population (Cr)
Urban Population (%)
Per capita Net National Income*
28%
36%
2002
2022
40,419
96,522
2001-02
2022-23
Exhibit 1: Changing population, urbanization and per capita net national income in the last two decades
A review of the Monthly Per Capita Expenditure (MPCE) (2022-23) published by the Ministry of Statistics and
Program Implementation indicates that Indian rural households spent 46% , while urban households spent 39%
of their overall budget on food. Interestingly, out of the total food expenditure done by both the urban and rural
consumers, the maximum spend is on beverages and processed foods (including purchased cooked meals),
followed by fruits and vegetables, and milk & milk products. For the first time, the share of beverages and
processed food (including purchased cooked meals) in the total spending of rural Indian households has crossed
that of cereals.
The trend analysis (2011-12 and 2022-23) also puts forth a notable growth in the per capita spend on high
value produce such as beverages and processed foods, fruits & vegetables, milk and milk products, outpacing the
growth of cereals and pulses, in both urban and rural areas.
Exhibit 2 captures the share of food categories in the monthly per capita consumer expenditure on total food
items and % change in contribution to food wallet.
According to the FAO, India is set to surpass China as the primary driver of global food demand over
the next decade. While China contributed to 28% of the demand increase over the past ten years until
2023, this figure is projected to fall to 11% in the coming decade. Conversely, India’s share is expected
to rise from 13% to 20%. Forecasts for staple food consumption illustrate this shift. China’s wheat
consumption is projected to reach 147 Mn MT by 2033, a modest increase of 2.6% from the 2021-
2023 average. In contrast, India’s wheat consumption is anticipated to grow by 27.7% to 137 Mn
MT, nearly matching upto China’s consumption. A similar trend is observed with rice, where Chinese
consumption is expected to remain stable while Indian demand is expected to rise significantly. This
forecast is based on anticipated population decline and stagnating incomes in China, compared to
population growth and improving living standards in India. This scenario necessitates prompt and
decisive actions to optimize all value chains.
Source: FAO, OECD
16
Exhibit 2: Monthly per capita consumer expenditure- share of food categories in overall food basket and growth
Source: NSSO (2022-23)
Bevrg & Pr. Food
Fruits & Vegies
Milk & Prod
Meat, Egg, Fish
Cereals & Prod
Salt, Sugar, Spices
Edible oil
6%
2011-12
Category
2022-23
Pulses & Prod
6%
2%
3%
2%
-9%
-2%
1%
-2%
Rural
1,121
2,530
756
1,750
% Chng
2011-12
2022-23
% Chng
2.3x
2.3x
MPCE Food (INR)
<1%
2%
<1%
-6%
-1%
<1%
-1%
Urban
MPCE WALLET
5%
6%
8%
16%
9%
16%
19%
21%
4%
6%
7%
9%
9%
18%
19%
27%
6%
7%
10%
20%
9%
15%
18%
15%
4%
8%
8%
11%
11%
18%
20%
21%
1.2 Response of agriculture to the changing demand
In response to the evolving consumer preferences, Indian agriculture has effectively adapted by remaining in tune
with consumer trends and adjusting production accordingly. Crop diversification has been adopted to cater to the
dynamic demand, ensuring more adaptable and resilient production systems.
An analysis of the Gross Value of Output (GVO) of various agricultural sub sectors (2022-23), indicated that the
GVO of animal products has surpassed that of food grains and sugar crops, growing at a significantly higher rate
of 12% (CAGR from 2012-13 to 2022-23), as compared to 8% growth in foodgrains & sugar crops, during the same
period. Spices and condiments witnessed the highest growth (17%), followed by fisheries & aquaculture (15%) and
fruits and vegetables (10%).
GVO of various agricultural sub-sectors at current prices is captured in Exhibit 3.
17
sectors at current prices
-
of agricultural sub
1
GVO
1,401
914
216
383

Livestock

F&S Crop
Fishing & aquaculture

F&V
Condiments & Spices
8%
10%
17%
12%
15%
CAGR% (2012-13
)
23
-
2022
to
819
269
150
163

Pulses

Cereals

Oilseeds

Sugars
8%
9%
7%
9%
GVO and CAGR
4
top
-
Category breakdown
107
104
86
42

Mango

Onion

Banana

Potato
15%
10%
11%
11%
59
51
22
19

Arecanut

Dry Ginger

Garlic

Chillies
21%
16%
22%
21%
1,116
393
58

Eggs

Milk

Meat
12%
14%
Agri product category
GVO (‘000 INR cr.)
11%
1,725
This growth in output value has been driven by increase in production across key agricultural commodities.
Over the last two decades, production of food grains has increased by about 77%, that of horticultural crops has
increased by more than 147% and milk by more than 169% (refer exhibit 4).
Exhibit 3: GVO of agricultural sub-sectors at current prices
Source: Ministry of Statistics and Program Implementation, GoI;
All output numbers are based on current prices, F&S crops include food grains and sugar
175
309
77%
147%
245%
200%
169%
2022-23
40
138
2002-03
2022-23
6
18
2002-03
2022-23
144
356
2002-03
2002-03
2022-23
86
231
2002-03
2022-23
Food grains
Milk
Egg (Bn No.s)
Fish
Horticultural Crops
Exhibit 4: Production of various food categories (Mn MT)
Source: MoA&FW, MoFAh&D, NHB, MPEDA, DAHD
18
Exhibit 5: Area/Population growth of various food categories
Source: MoA&FW, NHB, MPEDA, DAHD (Poultry and bovine population are as per 20th Livestock Census)
The underlying increase in production has been on account of increase in area under cultivation, increased area
under irrigation, as well as increase in productivity across categories. The gross cropped area increased from 185
Mn Ha in 2000-01 to 211 Mn Ha in 2019-20. During the same period gross irrigated area increased significantly
from 76 Mn Ha to 112 Mn Ha3.
Area under foodgrains increased by 16% and horticulture crops by 75% during 2002-03 and 2022-23. Poultry and
bovine population has also increased by 74% and 7% respectively between 2003 and 2019. Productivity gains have
also been significant across various food categories, especially in shrimp with 336% productivity enhancement,
167% in milk, 53% in foodgrains, 33% in horticultural crops and 64% in eggs productivity4.
Exhibit 5 and 6 capture the growth in area/population and productivity respectively for key food categories during
2002-03 and 2022-23.
16%
Foodgrains
114
132
2002-03
2022-23
75%
Horticulture Crops
16
28
2002-03
2022-23
74%
489
852
2003
2019
Poultry Population
7%
283
304
2003
2019
Bovine population
Exhibit 6: Productivity growth in various food categories (MT/Ha)
Source: MoA&FW, NHB, MPEDA, DAHD
1.5
2.3
53%
33%
64%
336%
167%
Shrimp
2002-03
2022-23
82
134
2003
2019
1.1
4.8
2002-03
2021-22
9
12
2002-03
2022-23
0.3
0.8
2003
2019
Food grains
Milk (MT/Animal)
Egg (No./Animal)
Horticultural Crops
3 Land Use Statistics, Directorate of Economics & Statistics
4 MoA&FW NHB, MPEDA, DAHD
19
While India’s productivity for major categories has shown marked improvement in the past decade, the
opportunity for further improvement is immense. India’s productivity of various food categories when compared
to other countries stands much lower, marking a wide gap that can be filled with improved technology and good
agricultural practices. For instance, in case of cereals, India’s average productivity stands at 3.6 MT/Ha, while that
of US is more than double at 8.1 MT/Ha and that of China (the largest producer) is 6.5 MT/Ha5. Exhibit 7 shares
a comparison of productivity across key food categories/products for India, US, highest producer and the global
average.
Exhibit 7: Comparison of productivity (MT/Ha) across select categories- 2022
Source: FAOSTAT 2022
3.6
0.8
14.9
15.6
1.1
1.6
8.1
1.9
20.4
34.5
3.3
10.7
6.5
0.8
17.7
23.1
3
1.6
3.8
1.6
11.8
18.3
1.7
1.9
Cereals
Pulses
Fruits
Vegetables
Soybean
Milk
India
USA
Highest Producer
Global Average
China
China
China
India
India
Brazil
5 FAOSTAT
The increased production across food categories has ensured reliable and consistent supply across key
commodities. Over the last two decades, the per capita production of foodgrains has increase by about 38%, that
of F&V by more than 90% and for milk by more than 100% (refer exhibit 8). Furthermore, this enhanced production
capacity has not only helped meet the demands of growing population and changing dietary preferences, within
India, but has also significantly contributed to food processing and global trade.
Exhibit 8: Per capita production (Kg/Year)
Source: MoA&FW, MOSPI, DAHD, YES BANK Analysis
Milk
Egg (Bn No.s)
38%
Foodgrains
158
217
2002-03
2022-23
2002-03
2022-23
2002-03
2022-23
169%
36
97
108%
78
162
93%
F&V
117
227
2002-03 2022-23
20
Average Annual Growth
Rate (AAGR) of 7.3%
during the last seven
years ending 2021-22
USD 12.58 Bn
Cumulative investment
attracted from April
2000 till March 2024
Gross Value Added
(GVA) of 2.09 lakh
crores in 2022-23
1.8% Contribution to
the total FDI equity
inflow into the
country
25.6% Contribution in
total agri-exports in
2022-23
USD 535 Bn Output
from Food processing
sector expected by
2025-26
1.3 Role of food processing industry
India’s diverse climate and fertile land makes it conducive for cultivation of a wide variety of crops and for animal
husbandry, offering abundant opportunities for both farmers as well as processors. To manage this large and
diversified product basket, the processing industry becomes a strong frontier, linking the harvest to consumers,
managing wastages and enhancing shelf life of products for the domestic as well as global markets.
The food processing industry has been a strong pillar of the Indian Agricultural as well as manufacturing ecosystem,
contributing 11.57% to GVA Agriculture, Forestry and Fishing and 10.54% to GVA manufacturing in 2020-21. The
Gross Value Added (GVA at constant prices) in food processing sector reached 2.09 lakh crores in 2022-236.
Furthermore, the industry contributed about 12.22% to the employment generated in all Registered Factory
sector, engaging approximately 2.03 Mn people. Unregistered food processing sector supported employment of
5.1 Mn workers (as per the NSSO 73rd Round report 2015-16) and constituted 14.18% of employment in the
unregistered manufacturing sector.7
6 MoFPI annual report 2022-23, PIB
7 Invest India
8 PIB
The food processing industry in India has dynamically responded to consumer demand and expenditure trends
by continuously innovating to offer meals, snacks, beverages and convenience foods that save time and cater to
the busy lifestyles of consumers. There has also been a clear emphasis on healthier processed foods and safety
standards for which the food processing companies have been investing in advanced processing technologies and
quality control measures. This has not only increased processing levels in India, but also enhanced the country’s
global market presence. This is evident from the fact that the contribution of processed food exports in agri-
exports increased substantially, reaching 25.6% in 2022-23, from 13.7% in 2014-158. The sector has also attracted
significant foreign investment (FDI), with cumulative inflows reaching USD 12.58 Bn between April 2000 and
Source: MoFPI, Invest India, PIB
21
March 2024. This accounted for 1.8% of the total FDI equity inflow into the country9. The food processing industry,
thus remains a crucial link in adding value to agricultural produce, making it accessible to Indian consumers, and
playing a pivotal role in global agricultural trade.
1.4
India’s contribution to global trade
Over the last two decades, there has been a remarkable surge in India’s agri-exports, experiencing a nine-fold
increase from USD 6 Bn in 2000-01 to an impressive USD 53 Bn in 2022-2310. This surge can be attributed to
various factors including advancements in agricultural practices, technology adoption, and improved productivity.
Moreover, globalization and changing consumer preferences worldwide have created opportunities for Indian
agricultural products in the international market. The country has capitalized on this by strategically aligning its
production with global demands, and increasing its competitiveness, leading to a substantial increase in exports.
India further aims to reach USD 100 Bn in agri exports by 203011. The growing production base, diversification,
increasing focus on sustainability and policy thrust shall enabling India achieve its ambitious agri exports target.
India has already emerged as a leading exporter of a number of agri commodities – including Rice, Spices, Shrimp,
Groundnut, Sugar and Cotton among others (refer exhibit 10). Looking ahead, there is a strategic shift towards
exporting value added products including organic food products, ready to eat products, Indian traditional food
products, superfoods, millet based processed products and nutraceuticals among others.
India will need to pace up its export strategy and policy reforms as China is steadfast on its
transformational journey of intensifying its production capacities, enhancing exports and pioneering
in agricultural innovations during and beyond the Year of Dragon (2024). China not only aims to play
a pivotal role in the arena of global food security but also to become self -sufficient in foodgrains and
oilseeds aiming to grow about 90% of its grain requirement by 2032. China’s agricultural outlook report
for 2023-32 also outlines a plan to increase rice exports from China by 24% in the next 10 years.
Exhibit 9: India’s agri export value (USD Bn) and share in global agri exports (%)
6
24
53
2000-01
2010-11
2022-23
1.10%
1.70%
2.40%
2000
2010
2022
Source: Indiastat, MoA&FW, FAOSTAT, ITC Trademap
India’s export data has been converted to USD basis the average dollar price for the respective year
9 Invest India
10 PIB
11 agriexchange.apeda.gov.in
22
Exhibit 10: Commodity wise share in Global Agri Exports %
Source: DGFT, ITC Trademap, India’s export data has been converted to USD basis the average dollar price for the respective year, commodity exports for
the year 2022* spices export from spices board of India for 2021-22
Rice - 37%
(USD 1,076 Mn)
Frozen Shrimp 21%
(USD 4,797 Mn)
Spices ~ 20 %
(USD 4,068 Mn)*
Ground Nut 18%
(USD 712 Mn)
Sugar 19%
Cotton 11%
(USD 5,742 Mn)
(USD 6,943 Mn)
Onion 12%
(USD 525 Mn)
Copra 22%
Tea 10%
(USD 24 Mn)
(USD 751 Mn)
23
Exhibit 11: A snapshot of India’s strengths in agriculture
India’s innate potential to
serve as a global food hub
2.1
India’s strengths in agriculture
India’s strength in agriculture lies in its agroclimatic diversity, extensive arable land & production base, a substantial
labor force, supportive policy environment and ongoing technological advancements. These factors collectively
contribute to the nation’s robust agricultural sector making it one of the world’s leading agricultural nations.
India boasts of diverse climatic zones, allowing for the cultivation of a wide variety of crops throughout the year.
This diversity supports the growth of crops ranging from a wide variety of staples like rice, wheat, oilseeds,
sugarcane, pulses to a myriad of fruits, vegetables and spices. Additionally, India possesses the largest livestock
population globally. This abundance contributes to the food and nutritional security and contributes to the
livelihoods of millions engaged in agriculture and its allied sectors . Agriculture in India is also supported by a large
and diverse labor force. The government’s policies, have consistently aimed at promoting agricultural growth
and rural development. Schemes such as PM Krishi Sinchai Yojana, National Mission for Sustainable Agriculture,
and PM Fasal Bima Yojana focus on water management, sustainable agriculture, and crop insurance, creating a
supportive environment for farmers.
A snapshot of India’s strengths in Agriculture is captured in Exhibit 11.
2
Gross agriculture production by country, Million Tonnes, 2022
1,885
1,230
1,075
676
447
275
226
206
175
164
Rank 2

China
India
Brazil
USA
Indonesia
Russia

Pakistan
Nigeria
Thailand

Argentina
15 agro-
climates
Second largest
arable land (180
M Ha), large irrig.
area (75 Mn Ha)
Abundant Labor
Force. Relative
low cost of
production.
Strong
government
support
Global leader in production�of
mangoes (21 million tons),
papayas (5 million tons),�and
bananas (37 million tons)
Second in the world in
terms of fruits &
vegetable production
Second largest
producer of rice,
wheat and cotton
Second largest
producer of
Tea
Largest pulses
producer in the world
(26 million tons)
Largest
producer�of
sugar
Largest population of
buffalos (~109
million), Largest milk
producer in the world
(231 million tons)
Second largest
producer of Eggs
Third largest fish
producer (~8% of
global fish production)

24
1,075
676
447
275
226
206
175
164

China
India
Brazil
USA
Indonesia
Russia

Pakistan
Nigeria
Thailand

Argentina
Global leader in production�of
mangoes (21 million tons),
papayas (5 million tons),�and
bananas (37 million tons)
Second in the world in
terms of fruits &
vegetable production
Second largest
producer of rice,
wheat and cotton
Second largest
producer of
Tea
Largest pulses
producer in the world
(26 million tons)
Largest
producer�of
sugar
Largest population of
buffalos (~109
million), Largest milk
producer in the world
(231 million tons)
Second largest
producer of Eggs
Third largest fish
producer (~8% of
global fish production)
and second in
aquaculture
production.
Source: FAOSTAT, MoA&FW, NDDB,PIB
Looking into the future, a diverse set of macrotrends are redefining India’s potential to serve as a global food hub
−
On the consumption front, factors such as increasing population, increasing urbanization and shifting dietary
patterns are resulting in increased demand of agricultural produce
−
On the supply side, factors such as declining water resources, higher land fragmentation and decreasing
labour availability/increasing labor prices are impacting farm level production efficiencies
Increasing population
Declining water resources
Increasing urbanization
Land Fragmentation
Shifting dietary pattern
Decreasing labor availability
From 1.4 Bn to 1.7 Bn by 2050
Receding groundwater tables
Agriculture water requirement to reach 1072 BCM (1.6 times increase) by 2050
From present 36% to nearly 52% by 2050
Average land holding estimated to drop to 0.30 ha by 2050
Meat consumption to be 3 times higher by 2050, Milk demand projected at 401 Mn MT
Labor force employed in agriculture in India is expected to decrease from 54.6% in 2011 to
25.7% by 2050
25
−
Compounding this dynamic is the risk of climate change. Factors such as raising temperatures and erratic
weather patterns are having a negative impact on yields
Raising temperatures
Erratic weather patterns
Climate impact on yields
Average temperature expected to increase by 1.3% (in a medium emission pathway) by 2050
increasingly frequent heat waves, droughts/cyclones, vagaries of monsoon
Crop yield estimated to drop by 7.2 to 23.6% by end-century
Sources: https:/ population.un.org/wpp/Publications/; https:/ population.un.org/wup/publications/Files/WUP2018-Report.pdf; https:/ nrcmeat.icar.gov.in/
docs/Vision-2050.pdf; https:/ krishi.icar.gov.in/jspui/bitstream/123456789/1093/1/ciae_vision_2050.pdf; https:/ www.nabard.org/auth/writereaddata/
tender/2010165456All_India_Projected_Water_Demand.pdf; https:/ wotr.org/2022/06/17/action-points-india-global-land-outlook-report; IFPRI: Global
Food Policy Report 2022; https:/ unfccc.int
2.2
Factors driving sustainable growth of indian agriculture
Indian agriculture is undergoing a transformative phase driven by convergence of several factors, propelling
sustainable growth in the sector these include:
2.2.1 Growing demand for nutritious food
The growing demand for nutritious food in India is influenced by various
factors including health awareness, rising income levels, changing
lifestyles patterns, government initiatives to promote nutri-cereals,
rise in lifestyle related diseases and accessibility to healthier food
options. This increasing demand presents a significant opportunity for
farmers to diversify their income by focusing on practices that align
with this demand. As consumers prioritize healthier and diversified
options, farmers are adapting their cultivation priorities and methods
to enter into newer segments like horticulture, dairying, poultry and
fisheries. Farmers are also exploring sustainable and organic farming
practices as well, to meet the growing demand for healthier and
Hatching Hope Initiative by Cargill
Growing demand for
nutritious food
Growing private
sector participation
Proactive &
supportive policy
ecosystem
Evolving
farmer-market
linkage models
Adoption of
new technologies &
digital practices
Growing focus on
sustainability
Empowering 30,000 women
farmers at grassroots,
through poultry production
The Hatching Hope initiative was
launched in India in 2018 by Cargill
and Heifer International. This initiative
aims to improve the nutrition and
economic livelihoods of 100 million
people globally by 2030 through the
production, promotion, and consumption
of poultry. Although almost 80% of rural
households in developing nations keep
chickens, the majority of farmers lack
the knowledge, technical support and
market access necessary to make poultry
farming a dependable source of revenue
and nutrition. The bold initiative aims
to improve the nutrition and economic
livelihoods of 60 million people in India by
2030 through the production, promotion
and consumption of poultry
Cargill also promotes economic
development by working with women
from underserved communities to start
their own small businesses, through
initiative like Samriddhi & Societymaker,
Cargill has trained more than 1000
women to become self-reliant, earn
livelihoods and lead meaningful lives.
Source: Cargill
26
sustainable food options. Private sector is also promoting diversification as an avenue of additional income for
their farmers, and helping the producers with adequate technologies and market access.
2.2.2 Adoption of new technologies & digital practices
The adoption of new technologies and digital practices is playing a pivotal role in driving sustainable
growth within the agriculture sector. Various advancements contribute to increased productivity,
environmental sustainability, and overall efficiency of agricultural value chains. Development and
propagation of high yielding varieties, green chemistries and farm mechanization has enhanced
productivity and helped minimize on-field crop damage.
Advances in genetic research contribute to the development of crops with increased resilience to climate
fluctuations. These resilient varieties help farmers adapt to changing environmental conditions and mitigate the
impact of climate-related challenges.
The application of Satellite Imagery and Remote Sensing in agriculture has enabled collection and analytics of
valuable data for monitoring crop health, identifying potential issues, and optimizing land use. IoT devices, such as
soil moisture sensors and weather stations, allow stakeholders to gather data in real-time which helps in making
data-driven decisions, optimizing irrigation, and improving overall farm management.
The integration of digital technologies into agricultural value chains facilitates better communication and
coordination among stakeholders. From production to distribution, digitalization has enhanced transparency,
reduced wastage and helped building a more efficient supply chain.
2.2.3
Evolving farmer-market linkage models
The evolving farmer-market linkage models in India is playing a crucial role in boosting agricultural
growth. Supported by government initiatives, digitalization, and infrastructure development,
these models are fostering a more efficient and inclusive agricultural ecosystem. These efforts
aim to empower farmers, reduce post-harvest losses, and enhance the overall competitiveness
of Indian agriculture in both domestic and international markets.
The formation of farmer collectives or cooperatives has also gained momentum. These groups enable farmers
to pool resources, share knowledge, and collectively negotiate better prices in the market. This model enhances
the bargaining power of small and marginal farmers, ensuring more equitable returns for their produce. The
government aims to create 10,000 more FPOs to leverage their collective power to boost agricultural growth.
The government’s emphasis on the E-NAM (Electronic National Agriculture Market) platform facilitates online
trading of agricultural commodities. This digital marketplace connects various agricultural produce market
committees (APMCs) across states, promoting transparency, fair pricing, and efficient distribution. Farmers gain
access to a broader market, fostering competition and improving overall market dynamics.
The private sector has also been working on Farm-to-Fork Initiatives which involves the direct supply of produce
from farmers to consumers. This shortens the supply chain, reducing intermediaries and ensuring that farmers
receive a higher share of the consumer’s expenditure. It also provides consumers with traceability and the
assurance of fresh, locally sourced products.
27
2.2.4 Proactive & supportive policy ecosystem
Various government initiatives, including subsidies, credit facilities, subventions and market linkage
support have been provided by the government for boosting agricultural growth. These policies aim
to empower farmers economically, enhance productivity, and create a conducive environment for
agriculture and agribusinesses. These interventions and policy measures have a strong intent and
focus towards farmers’ welfare.
Strong impetus has also been laid on boosting private sector investment in infrastructure development and
incentives have been offered through various schemes like AIF, AHIDF, PMKSAMPADA etc. at the central level and
many states offer further benefits under agribusiness/ food processing or industrial policies.
2.2.5 Growing private sector participation
The increasing involvement of private sector in the agricultural value chain has played a pivotal
role in fostering sustainable growth in agriculture. Private sector has actively contributed towards
various aspects including:
Research-Based Technology Introduction: Private sector investment in research and development has led to the
introduction of advanced agricultural technologies. This includes improved seeds, precision farming techniques,
and innovative cultivation practices, enhancing overall productivity and sustainability.
Extension Services: Private companies have been instrumental in providing extension services to farmers. These
services encompass training programs, advisory support, and dissemination of best practices, empowering
farmers with knowledge and skills to optimize their practices.
Linking Farmers to Markets: Private sector participation has facilitated the creation of robust supply chain
networks. By connecting farmers directly to markets, agribusinesses have streamlined distribution channels,
reducing post-harvest losses, facilitating better returns for farmers.
Farmer
PepsiCo
Grading/Sorting: Quality based pre-agreed buyback
‘Pay for Performance’ systems to drive quality &
continuous supply
Agronomy Technical support
Locally evolved
Farmers’
Organization
Directly with the
Farmer
Agri
Inputs
Banks
Storage
Services
Farm
Machinery
Insurance
“Partners in Progress”
Quality
Seed from
PepsiCo
Govt
World class tissue culture
lab facility & seed
multiplication program
Institutional
support
Long duration modern
potato cold store
Low cost
mechanization
Best in class crop protection
chemicals & right fertilizers
Facilitating low cost loan from
SBI and other banks
Extension Services
Source: PepsiCo
28
Investment in Post-Harvest Infrastructure and value addition: Private investment in post-harvest infrastructure,
such as cold storage facilities, processing units, and transportation systems, has significantly improved the
efficiency of the agricultural supply chain.
The collaboration between private sector and other stakeholders of the agriculture value chain has been
instrumental in modernizing the sector, making it more resilient, sustainable, and economically viable.
2.2.6 Growing focus on sustainability
The heightened focus on sustainability has also been a catalyst for agricultural growth, with both government
and private sector initiatives contributing significantly. The government has rolled out various schemes and
incentives for adoption of sustainable agricultural practices like micro irrigation, organic farming,
conservation of biodiversity, and climate-resilient agricultural strategies amongst others, aligning
with the goal of long-term environmental and economic sustainability.
Private sector’s commitment to net zero aspirations further bolsters sustainability efforts.
Companies are increasingly investing in eco-friendly farming practices, reducing carbon
footprints, and adopting technologies that minimize environmental impact.
For more than two decades, ADM has been supporting smallholder
farmers in India in developing a more sustainable value chain. The
programme (Shashwat Sheti Upakram) provides small growers with
sustainability resources, technology, best conservation practices and
market connections. Since 2021, ADM has ramped up its sustainability
efforts through strategic partnerships with Bayer and Coromandel
International Limited, aiming to provide trainings to 25,500 soybean
farmers in sustainable practices like seed treatments, integrated
pest management, and nutrient management. As the bridge between
growers and consumer-facing brands, ADM’s global capabilities allow
them to help scale these sustainable practices across the value chain
and farming ecosystem in the region.
Source: ADM
29
Bottlenecks across
agricultural supply chain
challenging growth
The agricultural supply chain faces various bottlenecks that impact the overall agricultural supply chain efficiencies.
These bottlenecks impact each leg of the value chain right from the farm level to domestic and export consumption.
The repercussions of these bottlenecks are profound. Farmers grappling with reduced efficiency and increased
uncertainties often experience diminished incomes which impacts the ability to invest in better agricultural
practices, perpetuating a cycle of underdevelopment. Compromised efficiency of the agricultural supply chain
contributes to food wastage leading to global food security concerns. The sector’s sustainable growth is also
at stake as these bottlenecks impede the adoption of environmental friendly practices and innovations. From
precision farming to sustainable irrigation methods, many advancements remain underutilized due to challenges
within the supply chain. Some of the key challenges impacting the agricultural supply chain are captured in the
section below.
3.1 Farm level
•
At farm level low productivity and poor farm viability remains a key challenge. Small and
fragmented farm holding is a primary factor, as limited land size restricts economies of
scale, impacts ability to adopt modern farming techniques/ technologies and limits the
risk-taking ability of farmers. This constraint often results in subsistence farming, where
farmers struggle to generate sufficient income.
•
Inadequate access to quality seeds and genetic stock further exacerbates the problem. Farmers relying
on outdated or low-quality seeds experience lower yields, as these seeds may lack resistance to pests
and diseases or fail to thrive in changing climatic conditions. Limited access to improved genetic varieties
impedes the development of resilient crops. The low seed replacement ratio (SRR) is also a key concern that
has been impacting crop productivity. Currently, only around 15% of India’s total cropped area is planted with
freshly obtained quality seeds every year. A huge 85% area is sown with farm saved seeds. This ratio varies
from crop to crop between 7% in staple crops to maximum 70% in some vegetables and fruits. For wheat
and rice, the SRR is in the range of 9-18%. Without achieving the optimal seed replacement ratio, efforts to
enhance yields may fall short of expectations12.
•
In India, 35-45% of crop yield is lost to diseases, insects and weeds. Estimates suggest that this total loss
amounts to USD 30 Bn13, which is comparable to the GDP of countries like Combodia, Zambia and Cyprus.
Moreover, the usage of agricultural inputs in India is low largely on account of awareness, availability and
affordability issues. Despite being the second largest producer of agricultural commodities after China, the
nation ranks 11th in terms of total pesticide usage. Also, the pesticide use per unit of cropland in India was
estimated to be 0.37 kg/Ha (2021) which is amongst the lowest globally; way below countries like USA (11
kg/ha), Japan (11.24 kg/ha), Brazil (5.7 kg/ha), France (3.7kg/ha), UK (2.8 30 kg/ha), Indonesia (5.7 kg/ha)
and Vietnam (5.7 kg/ha)14.
12 National Institution for Transforming India (NITI) Aayog, Government of India
13 Herbicides Vis-à-vis other pesticides: Trend analysis and economic impact. Technical Bulletin No. 23, ICAR- Directorate of Weed Research, Jabalpur.
14 FAOSTAT
3
30
•
The limited adoption of advanced agricultural technologies is a notable bottleneck. From precision farming
and mechanization to data-driven decision-making, many farmers lack access or awareness of these tools.
This hinders efficiency improvements and sustainable farming practices.
•
Moreover, a lack of awareness and inadequate access to Natural Resource Management (NRM) and
climate-resilient technologies compounds the challenges. Farmers may not have the necessary knowledge
or resources to implement practices that conserve soil, water, and biodiversity. As climate change impacts
become more pronounced, the absence of climate-resilient technologies further exposes farmers to risks,
affecting both productivity and viability.
•
Like crops, dairy sector also suffers from low productivity levels, largely on account of inadequate feed
and fodder availability, limited reach of modern veterinary care and low Artificial Insemination coverage.
For poultry, the ground level challenge remains on the availability and high cost of feed, improper breeding
conditions, lack of awareness on usage of unwarranted substances such as baking soda and ammonium
chloride in feed and frequent disease outbreaks.
3.2 Post-harvest handling
•
Post-harvest infrastructure deficiencies contribute significantly to inefficiencies in the
agricultural supply chain. Inefficient post-harvest handling practices exacerbate losses.
From improper sorting and packaging to inadequate storage facilities, these shortcomings
lead to a substantial percentage of the harvested crops being wasted or degraded before
reaching consumers. This not only impacts farmers’ incomes but also contributes to global
food loss and waste.
The Economic Survey 2022-23 indicates that logistics costs in India range from
14-18% of GDP, higher than the global benchmark of 8%.
•
Sub-optimal transportation protocols further impede the smooth flow of agricultural goods. Inadequate
infrastructure and outdated transportation systems contribute to delays, damage, and increased costs
during the transit of perishable produce. Timely and reliable transportation is crucial to ensuring that the
harvested crops reach markets in optimal condition.
•
The high cost of storage is a significant barrier, especially for small-scale farmers. Limited access to
affordable and efficient storage facilities results in post-harvest losses due to spoilage and deterioration.
This financial burden further reduces farmers’ profitability and overall competitiveness in the market.
•
Saturated exit point infrastructure, such as ports and distribution centers and limited berths for perishable
agricultural produce exacerbates congestion and delays in the final stages of the supply chain.
•
Poor market linkages for farmers represent a crucial challenge as it limits their ability to connect with buyers,
resulting in delayed sales and often, unfavorable prices for their produce. This lack of direct market access
can leave farmers vulnerable to intermediaries who may take a significant share of the profits.
3.3 Manufacturing/ processing and value addition
The low levels of food processing in the agricultural sector stem from various challenges, including
the absence of economically processable varieties and underutilized processing capacities.
•
Many crops lack varieties that are well-suited for processing. Some agricultural products
may not have been developed or selected with processing in mind, limiting the options for value addition.
This constraint hampers the potential for diversifying products and adding value to raw agricultural produce.
31
•
Existing processing facilities often operate at below-optimal capacity. Factors such as outdated machinery,
inadequate maintenance, and insufficient technical know-how contribute to underutilization. Seasonality
and variability in raw material availability also remains a concern. This not only results in economic
inefficiencies but also discourages further investments in processing infrastructure.
•
The lack of awareness or access to modern processing techniques, especially in the MSME segment, further
hinders the industry’s ability to compete in the global market.
•
Market Demand and Consumer Preferences also need to be understood adequately. If there is insufficient
demand for processed agricultural products or if consumer preferences are not aligned with processed
offerings, it can lead to lower levels of processing.
•
Testing infrastructure remains a challenge at the farm level as testing labs are available in main cities, far
away from the production zones. In case of dairy, inadequate quality testing infrastructure at milk collection
centers and lack of trained manpower to undertake quality testing remains a serious challenge.
•
Limited availability of fillers and additives, especially for processed poultry products poses a challenge to
boost value addition in the segment and subsequent export.
•
By-product utilization of agricultural and allied product categories remains abysmally low in India. While
their utilizations can be adequately rewarding, the know-how, technology availability and capacity to invest
in by-product processing remains limited at present.
•
In case of plant protection chemicals manufacturing, active ingredients and adjuvants play a crucial role
in enhancing the performance, stability, and coverage on target plants. At present, many adjuvants need
to be imported due to absence of the manufacturers in India or non-competitive pricing. Imports put
forth challenges related to supply chain disruptions, heavy reliance on foreign vendors, cost fluctuations,
regulatory compliances, and vulnerability to geopolitical situations.
3.4 Exports
Tariff and non-tariff barriers, combined with a lack of alignment with international market needs,
pose significant challenges for agricultural exports from India.
•
High tariffs imposed by importing countries can make Indian agricultural products less
competitive in the global market. This can limit market access and impact the price competitiveness of
Indian goods. Negotiating favorable trade agreements and advocating for tariff reductions becomes crucial
for expanding export opportunities.
•
Non-tariff barriers, such as stringent quality standards, sanitary and phytosanitary regulations, and
certification requirements, can impede the entry of Indian agricultural products into international
markets. Adhering to these standards demands investments in quality control measures and compliance
infrastructure, which may be a challenge for some producers.
•
Poor understanding of international market demand and consumer preferences can result in the production
of goods that may not find ready acceptance abroad. This misalignment hampers the competitiveness of
Indian agricultural products in terms of quality, packaging, and meeting specific market requirements.
•
Inefficient transportation, storage, and distribution infrastructure can lead to delays and increased costs,
affecting the overall competitiveness of agricultural exports. Improving these logistics is essential for timely
delivery and maintaining the quality of perishable goods.
32
3.5 Regulatory
•
Registration process for a new product in India is stringent and complex, involving multiple
government agencies. In India, sometimes it takes more than 3 years for registration of
a molecule (for plant protection chemicals) against the prescribed duration of about 18
months, which may be due to involvement of multiple departments, limitation on resources,
infrastructure, skills etc. Also, while companies are innovating towards greener chemistries and looking at
a larger share of green portfolio, there is no separate pathway for these sustainable products that can give
time bound registration, leading to an unpredictable environment in introducing innovative products.
•
Product approval for food products at FSSAI also takes a long time for the scientific panel to approve.
Faster and regular meetings of the panels may be conducted by FSSAI for quick turn arounds on approval
applications, so latest food technologies can be introduced in India.
•
Inconsistent and unpredictable policy and regulatory regime including ad hoc bans (specifically at the onset
of cropping season) or restriction on usage of specific agricultural inputs or adjuvants restrains ease of
doing business. Similarly, inconsistent or unclear policies related to agricultural and food exports can create
uncertainty for exporters. A stable and supportive policy environment is crucial for fostering confidence
among exporters and encouraging long-term investments in the sector. Ad hoc bans and restrictions on
exports, disincentivizes exports and can lead to a significant loss in market share, sometimes permanently.
•
Differential incentives for processed products disincentivizes processing in segments that remain out of the
purview of such incentives.
3.6 Others
•
One of the primary obstacles encountered by the crop protection industry and to some
extend the food processing industry in India pertains to the myths and misconceptions that
revolve around them, causing disruption to the substantial industry endeavors aimed at the
development of the agriculture sector.
33
Key imperatives to boost
sustainable growth
4.1 Key imperatives
There are six key imperatives that agricultural value chain stakeholders could focus on to ensure sustainable
growth of Indian agriculture.
4
4.1.1 Productivity & farmer income enhancement
By 2050, India will need to meet the food and nutritional requirements of 1.7 Bn people. In addition, India will have
a critical role to play in fulfilling the food and nutritional security of resource-constrained nations globally, as well
as bridging the demand-supply gap for high value and value-added products in growing economies. For a food
secure future, a transformational jump in agricultural productivity remains critical for India. Productivity levels will
need to increase to over 7 MT/Ha by 2050 from the current levels of 4.28 MT/Ha (2021-22), warranting a 64%
growth.
The interplay between enhanced productivity, increased income, and sustainability drives long-term growth in the
agricultural sector. It not only benefits farmers directly but also have ripple effects on broader economic, social,
and environmental aspects, making it a key imperative for sustainable development. A more efficient agricultural
cycle ensures a more reliable and sufficient food supply contributing to national and global food security. Growth
in agricultural sector also stimulates rural development. It creates opportunities for improved infrastructure,
education, and healthcare in rural areas, fostering a more balanced and sustainable development model.
4.1.2 Linking farmers to markets
Linking farmers to markets is a key driver of sustainable growth in Indian agriculture, promoting economic
empowerment, technological adoption, and market-driven practices. This connectivity not only benefits individual
farmers but also contributes to the resilience of the entire agricultural ecosystem.
01
02
03
04
05
06
Productivity &
farmer income
enhancement
Linking farmers to
markets
Value addition & Exports
Sustainability &
Climate Action
Ease of Doing
Business
Technology and
Innovation
Key
Imperatives
34
Connecting farmers directly to markets minimizes reliance on intermediaries, ensuring a more equitable distribution
of profits, empowering farmers economically. Efficient market linkages contribute to a more streamlined supply
chain, resulting in reduced post-harvest losses, ensuring that more of the produce reaches consumers, reducing
waste, and enhancing overall sustainability. Farmers, when linked to markets, also align their crop planning with
market demand. An understanding of markets and access to diverse markets encourages farmers to explore
different crops and products, fostering crop diversification. This reduces the risks associated with mono-cropping
and enhances the resilience of the agricultural sector. A diversified and well-connected market network helps
mitigate risks associated with fluctuations in commodity prices. Direct market access also provides opportunities
for value addition to agricultural products. Farmers can explore processing and packaging options, adding value to
their produce and increasing profitability.
4.1.3 Value addition & exports
Value addition and exports play crucial roles in boosting the sustainable growth of Indian agriculture. India aims
to take its agricultural exports to USD 100 Bn by 2030. The growing production base, diversification, increasing
focus on sustainability and traceability and policy thrust shall enable India is achieving its ambitious target. This
will also warrant a strategic shift towards exporting value added products including organic food products, ready
to eat products, Indian traditional food products, superfoods, millet based processed products, nutraceuticals etc.
Emphasizing on value addition and boosting exports in Indian agriculture not only enhances income of farmers but
also contributes to economic development, job creation, and the overall sustainability of the agricultural sector. It
positions India as a competitive player in the global market, fostering long-term growth and resilience. Increased
agricultural exports bring in foreign exchange, strengthening the country's economic position.
4.1.4 Technology and innovation
Technology and innovation are fundamental for transforming Indian agriculture into a sustainable and resilient
sector. Embracing these imperatives not only addresses current challenges but also prepares the industry for
future demands, ensuring long-term growth and environmental stewardship.
Technological advancements, such as precision farming, automated machinery, new chemistries and improved
irrigation systems, significantly increase agricultural productivity. Innovations in agriculture technology enable
more precise resource management. This leads to reduced wastage, conserving water, minimizing environmental
impact, and making agricultural practices more sustainable in the long run.
The use of data analytics and sensor technologies provides farmers with valuable insights into crop health, soil
conditions, and weather patterns helping stakeholders in taking more informed decisions.
Technology also facilitates financial inclusion for farmers through digital platforms, enabling access to credit,
insurance, and market information. This financial support is crucial for investment in modern farming techniques
and infrastructure.
Digital platforms and e-commerce solutions connect farmers directly to markets, reducing dependency on
intermediaries. This direct access ensures fair pricing and efficient distribution, contributing to sustainable
agricultural practices.
35
15 https:/ www.iari.res.in/files/Publication/important-publications/ClimateChange.pdf
4.1.5 Sustainability & climate action
Agriculture is highly vulnerable to climate change, which manifests through shifts in temperature, precipitation
patterns, and the frequency of extreme weather events. Sustainable practices help farmers adapt to these
changes and build resilience in their farming systems.
According to International Panel on Climate Change (IPCC) report, the predicted temperature rise for India is in the
range of 0.88–3.16°C by 2050 and 1.56–5.44°C by the year 2080. Studies show significant negative impacts
of climate change, predicting yield reduction by 4.5% to 9.0%, depending on the magnitude and distribution
of warming. An Indian Agricultural Research Institute (IARI) study suggests that for every one-degree celsius
temperature rise in the month of march, will lead to reduction in yield of wheat by 8%15 under sodic soil conditions.
Depending on the modeling techniques, it has been estimated that rice yields can be impacted by up to 40% while
that of wheat could be up to 52%.
Many countries, including India, are committed to international agreements like the Paris Agreement, which
emphasizes climate action and sustainable practices. Adhering to these commitments is essential for global
collaboration in addressing climate-related challenges. Integrating sustainability and climate action into agriculture
is essential for mitigating climate risks, preserving resources, ensuring food security, and fostering the long-term
growth and resilience of the agricultural sector.
4.1.6 Ease of doing business
A progressive, predictable and science-based policy and regulatory environment facilitates ease of doing business
and is essential for driving growth, fostering innovation, and ensuring the sustainability of the sector. It empowers
farmers and agribusinesses to navigate challenges more effectively and seize opportunities for development and
prosperity.
A business-friendly environment encourages both domestic and foreign investments in the agricultural sector,
which leads to adoption of modern technologies, improved infrastructure, and increased productivity. Simplified
business processes and reduced bureaucratic hurdles enhance market access for farmers and agribusinesses.
This facilitates the smooth flow of agricultural products from farm to market, ensuring fair prices and reducing
post-harvest losses. EODB also plays an important role in the context of international trade, where streamlined
processes can make Indian agricultural products more attractive in global markets.
Moreover, a conducive business environment encourages the development of innovative solutions, agri-tech
initiatives, and value-added enterprises within the sector. Clear and transparent legal frameworks create certainty
for businesses, which is essential for making informed decisions, entering into contracts, and resolving disputes
efficiently.
36
4.2 Select Government initiatives to address the imperatives
Productivity & farmer income enhancement
Sustainability & climate action
Technology and innovation
Linking farmers to markets
Ease of doing business
Value addition & exports
• Pradhan Mantri Krishi Sinchai Yojana (PMKSY)
• National Food Security Mission
• Mission for Integrated Development of
Horticulture
• Pradhan Mantri Fasal Bima Yojana (PMFBY)
• PM Kisan Samman Nidhi Yojana
• Kisan Credit Card (KCC)
• National Mission of Sustainable Agriculture
• National Action Plan on Climate Change
(NAPCC)
• National Cyclone Risk Mitigation Project
(NCRMP)
•
The Green Credits Programme
• Net Zero Commitment
• Startup India, LEAP (Launching Entrepreneurial
Driven Affordable Products Fund for Start-ups,
Credit Guarantee Scheme for Start-Ups
• NIDHI program (National Initiative for
Developing and Harnessing Innovations)
• Atal Innovation Mission (AIM)
• Electronic National Agriculture Market (e-NAM)
•
Integrated Cold chain scheme
• Agri Infrastructure Fund
• The Agricultural Produce and Livestock
Marketing (Promotion & Facilitation) Act
• Make in India
• National Single Window System
•
India Industrial Landbank
• Direct Benefit Transfer
• Digital India
• Pradhan Mantri Kisan SAMPADA Yojana
• Production Linked Incentives (PLI)
• Pradhan Mantri Formalisation of Micro food
processing Enterprises (PMFME)
• Animal Husbandry Infrastructure Development
Fund (AHIDF)
• Food Processing Fund –NABARD
• Agri-Export Policy
• APEDA/MPEDA/Spice Board Schemes
37
Exhibit 12: A snapshot of activities being undertaken by the corporates and SDGs impacted
Imperatives
Activities
SDGs Impacted
4.3 Role of private sector in sustainable growth of agriculture
The private sector is playing an active role in sustainable growth and development of Indian agriculture. Their
initiatives such as technology introductions, farmer extension services, market linkage initiatives and investments
in post-harvest handling and processing infrastructure are resulting in increased productivity and farmer income
enhancement. They are also working on various natural resource conservation initiatives such as encouraging
regenerative agriculture, water conservation programs and soil care programs. Many forward-looking private
companies are focusing intensively on climate action, waste reduction and mindful consumption. The work
being done by the corporates in the agriculture sector has direct impact on at least 12 of the 17 Sustainability
Development Goals if not more. A snapshot of select activities undertaken by private companies and the SDGs
impacted is captured in exhibit 12.
Productivity
improvement & Farmer
income enhancement
Climate action –focused
on climate resilience
and reduced carbon
emissions
Wastage reduction and
mindful consumption
Promoting quality of life
Conservation of natural
resources
• Research backed innovative technology
introductions
• Farmer extension and advisory services
• Linking farmers to markets for better
price realization
•
Investing in post-harvest handling and
processing infrastructure
• Encouraging climate smart farming
practices
• Utilizing renewable sourcing of energy
•
Introducing climate resilient seed
varieties / climate smart solutions
• Promoting healthy and nutritious food
• Post harvest solutions for reducing
wastage
• Safe, & healthy working environment
• Reducing and recycling of plastic waste
• Encouraging conservative and
regenerative agriculture practices
• Soil care programs
• Water conservation
38
Exhibit 13: Select initiatives being taken up by the US companies in India
Exhibit 13 captures select initiatives taken up by US companies in India towards farmer income enhancement,
climate action and other Sustainability themes
Project SAFAL
• Safeguarding Agriculture & Farmers Against
Fall Armyworm
• Promoting IPM
•
> 3,00,000 farmers reached/impacted
Shashwat Sheti Upakram
• Sustainable agriculture program with 25,500
soybean farmers covering almost 90,000
acres
• Support small holder farmers to improve
sustainable practices and access non-GMO
markets
Project Unnati
• To uplift livelihoods of S&M fruit farmers in
India
• Covered >10,000 Acres & 2,00,000 Farmers
• GAP, Introduce new varieties
Quality Animal Nutrition
• Animal nutrition solutions for dairy, poultry
and aquaculture
•
Invests significantly into R&D for development
of animal husbandry products
Millet Hybridisation
• High yielding climate resilient bajra seeds
introduced
• Educating farmers on GAP.
• Facilitating Bajra Mahotsav programs with state
governments
Srishti Initiative
• Regenerative agriculture program in Maize in
Karnataka
• > 25,000 acres, > 10,000 farmers
Krishi Jyoti Program
• Educating farmers on how to increase yields and
improve farmland management
• > 7500 farm families reached
• > 1,24,000 people benefited
3600 Farmer Connect
• Supplies high quality potato seeds and provides
training for on-field agronomy
• Assured buyback (Potato)
• >24,000 farmers impacted
39
Cocoa Life Program
• Global investments of $1 billion, with
substantial investments in India
• Working with agricultural universities to
promote cocoa cultivation, GAP etc.
• > 100,000 farmers reached
Samruddhi Program
• Uplift socio-economic condition of farmers
through crop diversification & GAP
• >14,000 farmers and 23,000 youth impacted
Regenerative Agriculture
• Aim - Regenerative agriculture in 1 Mn acres
farmland by 2030
• Project Malavdhara –soil and water
management conservation programme in 10
villages of MP
Nutrition Education programme for 6000 kids in
Nashik, Maharashtra
Nutrition to 400+ kids in urban slums of Mumbai
from last 10 years
Green Energy
• Converting coal based boilers to agriwaste
based rice husk boilers
• Energy efficiency as a core consideration
Nutricert Certification program
• Sourcing of agri produce ensuring it comletely
traceable, socially responsible and ecologically
sustainable.
• Train suppliers on Nutricert standards and
ensure that farmers receive proper training on
cultivation aspects and technical knowledge of
farming practices.
Bright Start Initiative
•
‘Bright Start’ feeding programme - serving
Breakfast to 16,000 needy children on a weekly
basis, in four states of Maharashtra, Karnataka,
Andhra Pradesh & Gujarat.
• Kellanova is nurturing farmers, including women,
smallholders and workers by training them with
climate-smart practices for better yield.
• 12,000 smallholder farmers in MP & 12,500
farmers in UP have already participated in the
initiative. Currently, looking at empowering 700
more corn farmers in Maharashtra and Karntaka
on similar practices.
Cold Chain Solutions
• Providing sustainable cold chain solutions to
reduce post harvest food wastage
Climate Resilience
• Disseminating agro-ecological practices including
sustainable water management (Guargum)
• Provide farmers with remunerative and stable
prices
Source: Respective company websites, details shared by company representatives.
40
Interventions for
boosting private sector
contribution
5
In the evolving landscape of global agriculture, private sector plays a pivotal role in driving innovation, efficiency,
and sustainability. Increasing the involvement of private sector in agriculture is essential for driving comprehensive
growth. Strategic interventions designed to enhance this engagement include- promoting private investment in
critical areas such as agriculture research and extension services, which are essential for advancing agricultural
productivity and resilience. Additionally, supporting introduction of innovative technologies, promoting farmer-
level sustainability initiatives, incentivizing investment in agri infrastructure, coupled with the creation of an
enabling policy environment and export facilitation are crucial for achieving long-term agricultural growth and
sustainability.
5.1 Promoting private investment in agriculture research & extension
To promote private investment in agricultural research and extension the following may be considered
•
Tax incentives, grants, or subsidies to encourage private companies to invest in agricultural R&D and
extension services.
•
Incentivizing production/manufacturing of newer technologies by way of production linked incentives
•
Creating a conducive regulatory environment that supports innovation and protects intellectual property
rights, encouraging private entities to engage in research activities. The requisite policies for example the
National Seed Policy should have a clear focus on this, as it will lead to adequate access of quality inputs to
the farmers.
•
Simplifying regulatory processes for obtaining approvals related to agricultural research and extension
activities, reducing bureaucratic hurdles for private entities and ensuring transparency and clarity in
regulations to boost confidence among private investors in the food and agriculture sector.
•
Establishing frameworks for collaboration between private companies and public research institutions to
leverage existing expertise and resources.
•
Fostering joint research projects, allowing private enterprises to benefit from the knowledge base of public
research organizations. Also, developing partnerships between private entities and government extension
services to enhance outreach and dissemination of agricultural innovations will be helpful.
•
Creating funding mechanisms or grants specifically for joint extension programs that involve both public and
private stakeholders.
•
Creating Knowledge sharing platforms for information exchange and collaboration between private and
public stakeholders, fostering a culture of shared learning. This may also include facilitating inter country
(Indo-US) collaboration on topical issues including climate smart agriculture.
41
5.2 Supporting introduction of innovative technologies and products
To support the introduction of innovative technologies and products in agriculture, a streamlined
and digitized approach with a focus on protecting intellectual property rights (IPRs) can be
implemented. Moreover, a progressive, predictable and science-based policy and regulatory
environment towards new innovations and research can play a catalytic role in enabling farmers
to avail improved and efficient technologies. Actionable may include:
•
Simplifying and fast tracking the licensing, registration and approval process for introducing new agricultural
technologies and establishing clear and efficient regulatory pathways may help bring technologies at a
faster pace to India.
•
Developing guidelines that provide a framework for assessing the safety, efficacy, and environmental impact
of innovative agricultural products.
•
Strengthening legal frameworks to protect intellectual property rights, encouraging companies to invest
in R&D and bring innovative products for the sector. Also, establishing mechanisms for the fair and timely
resolution of intellectual property disputes, providing a secure environment for innovators will be beneficial.
•
Initiatives towards concepts like Recycling and Reusage should be policy driven and incentivized, rather than
being made mandatory, so that businesses with the capacity and intent are encouraged to invest in these
areas and find solutions to serve all stages and scales of business.
•
Digitization will be critical, especially towards-

o
Single window system for submitting and processing licensing and registration of applications will
promote efficiency and accessibility. Center-State harmonization towards the same also remains
essential for efficiently driving processes.

o
Documentation and application processes to reduce paperwork, minimize errors, and accelerate the
review and approval of new technologies.

o
For communication between regulatory authorities, applicants, and stakeholders, enhancing
transparency and accountability.

o Minimizing manual intervention in the approval process by leveraging technology for data analysis, risk
assessment, and decision-making.

o
Automated systems for routine tasks, allowing regulatory authorities to focus on more complex and
strategic aspects of technology evaluation.

o
Knowledge sharing and coordination with stakeholders and experts of the agri value chain. Easy and free
digital availability of knowledge in regional languages facilitate easy understanding of cropping pattern,
common problems, use of pesticides etc.

o
Supply chain digitization for making available quality inputs for farmers and connecting farmers with
market / aggregators, thereby increasing quality of production as well as realisation of higher price of
produce.
•
Establishing a centralized database or platform for transparently sharing information on approved
agricultural technologies, allowing stakeholders to access up-to-date information easily.
42
•
Incentivizing farmers for modern-day technology usage like:

o
Usage of crops originating from genetic research with increased resilience to climate fluctuations.

o
Satellite Imagery and Remote Sensing in agriculture –to collect real time data to help in making data-
driven decisions and improving overall farm management.
•
Providing training programs for regulatory personnel to enhance their skills in evaluating and approving
innovative agricultural technologies. Fostering collaboration with international organizations and experts to
share best practices in regulatory frameworks for technology introduction.
•
Conducting public awareness campaigns along with private sector to inform farmers, consumers, and other
stakeholders about the benefits and safety of newly introduced agricultural technologies.
•
Encouraging public participation in the regulatory process to build trust and confidence in the introduced
innovations.
5.3 Promoting farmer level sustainability initiatives
To promote farmer-level sustainability initiatives, a multifaceted approach can be implemented. Select actionable
proposed include:
•
Incentivize Regenerative Agricultural Practices: Introduction of differentiated Minimum Support Prices
(MSPs) that reward farmers practicing regenerative agriculture, considering the environmental and social
benefits. Providing financial incentives, subsidies, or tax credits to farmers adopting sustainable practices,
encouraging widespread adoption.
•
Building a Carbon Credit Ecosystem: Establishing a robust carbon credit system that acknowledges and
rewards farmers for sequestering carbon and reducing greenhouse gas emissions through sustainable
farming practices. Dairy being a critical sector in this context, needs efforts towards ensuring nutritional
efficiency along with breed improvement to enhance productivity and minimize its contribution to carbon
emissions.
•
Encouraging farmers to participate in recognized sustainability certification programs, providing them with
market access and premium prices for certified products. Collaboration with certification bodies to simplify
the certification process and reduce associated costs for farmers.
•
Establishing demonstration farms or learning centers to showcase the benefits of sustainable farming
methods and provide hands-on training.
•
Leveraging farmer collectives to collectively implement and benefit from sustainability initiatives. Enable
collectives to access resources, knowledge, and markets, amplifying the impact of sustainability efforts at
the grassroots level.
•
Ensuring that farmers have easy access to sustainable and eco-friendly inputs, such as organic fertilizers
and biopesticides. Provide subsidies or financial support for the adoption of eco-friendly agricultural inputs.
With respect to animal husbandry, awareness creation on improved breeding methods & management and
non-usage of antibiotics will be essential.
43
5.4 Continue incentivizing investment in storage, logistics and processing
infrastructure and providing an enabling policy environment
•
Public-Private Partnerships (PPP) for Integrated Bulk Storage- Extending successful PPP models, similar
to those implemented for wheat, to other commodities like maize. Collaborating with private entities to
develop large-scale integrated bulk storage facilities. Providing technical support, financial incentives, tax
breaks, or revenue-sharing mechanisms to attract private investment in the construction and management
of these storage facilities.
•
Incentivizing the establishment of cold chain infrastructure and processing infrastructure to reduce post-
harvest losses and ensure the quality of perishable goods. Offering subsidies, grants, or low-interest loans
to encourage private investment in processing infrastructure, refrigerated storage, transportation and
distribution facilities.
•
Streamlining and expediting the process of land allocation and land conversion for processing facilities.
Creating dedicated teams or offices to facilitate the smooth and efficient allocation of land, reducing
bureaucratic delays and ensuring a more investor-friendly environment will be supportive.
•
Customized Support for Different Commodities: Tailorize incentives and support mechanisms to the
specific needs and characteristics of each commodity, recognizing the diversity of storage and processing
requirements. Engaging with industry stakeholders to understand and address the unique challenges
associated with different agricultural products.
•
Collaborating with academic institutions and private sector partners to explore innovative solutions that
enhance efficiency and reduce costs in the storage and processing of agricultural commodities.
•
Rationalization of taxes (GST) for processed foods may be looked at to make it more consistent and aligned
with global standards, wherein processed food is kept at lower tax bracket to keep them affordable. Tax
rationalization shall encourage growth of the food processing industry, leading to higher investments,
innovations, job creation and more competitiveness globally, fostering exports.
•
Re-evaluating incentivization under various schemes (like PLI) on the basis of impact created at the ground
level, off take of high value/volume produce, nutritional value etc., instead of it being based on type of end
consumption. Schemes like PLI may thus, be extended to cereals/ grain processing and may also consider
Amino acids and Vitamin production which are inherent components of animal feed and essential for the
critical sectors of dairy and poultry which provide diversified income opportunity for farmers.
•
Licensing requirements for food processing plants / edible oil refineries may be re-evaluated such that
licenses are provided on a long term/life-time basis, through a single window system at the stage of plant
design approval itself.
•
Using feedback mechanisms to continuously refine policies and address any challenges faced by stakeholders
in the storage, logistics, and processing sectors.
5.5 Facilitating exports
•
Harmonizing Food Quality Standards: Aligning domestic food quality benchmarks, with international
standards. Ensuring that regulatory standards are in harmony with global norms, make it easier for Indian
products to meet the requirements of international markets.