At 179.9 million hectares, India holds the second largest agricultural land globally. The country possesses 15 major climates and 46 soil types in the world. Total food grains production in India reached an all-time high of 259.3 million tonnes (MT) in FY12. Rice and wheat production in the country stood at 105.3 and 94.9 MT, respectively.
Agriculture is the primary source of livelihood for about 58 per cent of India’s population. In FY 13, the gross domestic product (GDP) of the Indian agriculture sector reached 13.7 per cent. The country is among the 10 leading exporters of agricultural products in the world. Total agricultural exports from India expanded at a CAGR of 25.2 per cent to US$ 39 billion over FY 07–12.
In order to boost the sector’s growth, the Government of India has allowed 100 per cent foreign direct investment (FDI) under automatic route in storage and ware housing, including cold storages. It has also implemented schemes like Rashtriya Krishi Vikas Yojana (RKVY) which aims at incentivising states to increase outlays for agriculture and allied activities there by creating an increased focus on agriculture.
Limited arable land against growing population makes agricultural inputs crucial. A huge opportunity exists for agri input segments such as seeds and plant growth nutrients. Further, the 12th Five-Year Plan estimated a potential storage capacity expansion of 35 MT. Cold storage capacity also needs to grow rapidly from the current level of 24 MT.