Agriculture In India - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Agriculture In India - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

Agriculture in India is projected to register a CAGR of 4.9% during the forecast period (2022-2027).

During the outbreak of COVID-19, the Indian agriculture sector faced major challenges, like the harvesting process, which usually starts in mid-April, was thrown off balance completely, resulting in major liquidity issues. Labor scarcity has also affected the supporting infrastructure around India’s agriculture sector. Since movement across state borders has been heavily restricted, which has blocked the movement of crops and consequently affected the sales, lockdowns in major economies across the country have caused delays and backlogs in supply chains, exports faced transport and logistics problems, more stringent customs restrictions, etc.

Indian Agricultural industry, with its allied sectors, is unquestionably the largest livelihood provider in India, more so in the vast rural areas. It also contributes a significant figure to the Gross Domestic Product (GDP). The high proportion of agricultural land and diverse-agro climatic conditions for cultivating different crops are some of the factors favoring agriculture in the country. Schemes such as Paramparagat Krishi Vikas Yojana (PKVY) are helping in developing organic farming by promoting farmers to produce commodities free of pesticides and residue.

India is the largest producer of potato, onion, tomato, okra, eggplant, cabbage, and cauliflower, among vegetables and ranks second in the production of potatoes, onions, cauliflowers, brinjal, cabbages, etc. Substantial increases in productivity can thus be achieved even with diminishing land and water resources provided the use of better and quality seeds equipped with better traits under superior crop agronomy in the country. ​With intensive cultivation using hybrids, the average yields under open field conditions in India have been steadily increasing.

The Government of India has been instrumental in the growth and development of agriculture in the country. The government, through the Ministry of Agriculture, is making all efforts to encourage agriculture growth by launching various policies. For instance, in September 2020, the government introduced three agri reform bills—The Farmer's Produce Trade and Commerce (Promotion and Facilitation), the Farmer's (Empowerment and Protection) Price Assurance and Farm Services Agreement, and the Essential Commodities (Amendment) Act as a step to raise farmers incomes in the coming years.

In 2018, the government allocated USD 505.1 million for the scheme Paramparagat Krishi Vikas Yojana (PKVY) to promote and support the farmers to produce vegetables organically. The produce will be pesticide and residue-free, which in turn will contribute to improving the health of consumers. Thus, sustainable forms of agriculture will aid in the development of agriculture in the country.

The federal government also provides seeds and saplings of exotic food ingredients to local farmers in order to promote this small yet significant sector. The agriculture sector in the country is expected to generate better momentum in the next few years due to increased investments in the agricultural sector, thereby bolstering the agriculture sector of the country.

In 2020-21, India exported fruits and vegetables worth USD 1,342.14 million, which comprised fruits worth USD 674.53 million and vegetables worth USD 667.61 million, as reported by APEDA.

According to the Indian Council of Agricultural Research (ICAR), increasing awareness regarding the consumption of vegetables to meet various dietary requirements and nutritional needs has raised the demand for vegetables, consequently leading to an increase in the area of vegetable production. As reported by the Ministry of Agriculture and Farmers Welfare (India); DES (India), the Per capita gross availability of vegetables in India had increased from 378.1 grams per day to 388.7 grams per day. This indicates the expanding supply and consumption pattern of vegetables.

In India, exotic vegetables such as mushrooms, green olives, fresh broccoli, and many other items have been gaining popularity in recent times among the urban populations and gourmet hotels.

On the supply side, to cater to this growing demand, farmers are growing a wide range of vegetables, considering the fact that vegetables are short-duration crops that have multiple harvests, resulting in a better cash flow for the farmers. The Nilgiris district in Tamil Nadu produces the finest quality of lettuce, while freshly grown avocados can be found in Himachal Pradesh.

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