Agriculture -- across the expanse of India -- is heralding the country's second Green Revolution. A progressively larger number of states have been amending their Agricultural Produce Marketing Committee (APMC) Act, along the lines of the Model APMC Act, to allow farmers to directly sell their produce to the buyers.

Significantly, several agricultural sectors like horticulture, floriculture, development of seeds, animal husbandry, pisciculture, aqua culture, cultivation of vegetables, mushroom under cultivated conditions and services related to agro and allied sectors have been thrown open to 100 per cent foreign direct investment (FDI) through the automatic route.

Consequently, a number of corporate players have entered into agreement with the farmers with major investment plans to tap the huge potential in this sector.

• PepsiCo after introducing farmers to high-yielding basmati rice, mangoes, potatoes, chillies, peanuts and barley, has launched a five-year program with the Punjab Government to provide four million sweet-orange trees.
• Cadbury India Ltd has entered into an agreement with the Tamil Nadu Horticulture Department to promote cocoa farming in 50,000 acres.
• Reliance Retail plans to establish links with farms in Punjab, West Bengal and Maharashtra with an US$ 5.6 billion investment.
• Skol Breweries India Ltd, the wholly owned subsidiary of SABMiller India, has entered into a contract farming agreement with barley farmers in Haryana.
• Himalaya Drugs plans to associate with farmers across southern Indian states for sourcing at least 70 per cent of its herbs.

Already agriculture is one of the most important sectors of the economy contributing 18.5 per cent of national income, about 15 per cent of total exports and supporting two-thirds of the work force. And with recent developments, it is set to play a more dynamic role in the economy.

Production

India with its favorable agro-climatic conditions and rich natural resource base has become the world's largest producer across a range of commodities.

• India is the largest producer of coconuts, mango, banana, milk and dairy products, cashew nuts, pulses, ginger, turmeric and black pepper.
• It is also the second largest producer of rice, wheat, sugar, cotton, fruits and vegetables.