India has the second-largest arable land resources in the world. With 20 agri-climatic regions, all the 15 major climates in the world exist in India. The country also has 46 of the 60 soil types in the world. India is the largest producer of spices, pulses, milk, tea, cashew, and jute, and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. Further, India is second in the global production of fruits and vegetables and is the largest producer of mango and banana.
As per the First Advance Estimates for 2023-24 (Kharif only), total foodgrain production in the country is estimated at 148.5 million tonnes. Foodgrain production in India touched 330.5 million Metric Tonnes (MT) in 2022-23 (3rd Advance Estimate). India is the world’s 2nd largest producer of food grains, fruits and vegetables and the 2nd largest exporter of sugar. A total of 521.27 LMT rice has been anticipated for procurement for the upcoming KMS 2023-24, up from 496 LMT produced during the previous KMS 2022-23. As per the First Advance Estimates for 2023-24, rice is estimated at 1,063.13 lakh tonnes during the kharif season.
Rabi crop area has from 709.09 lakh hectares in 2022-23 to 709.29 lakh hectares in 2022-23.
In 2022-23 (as per the third advance estimate), India's horticulture output was expected to be 355.25 Million Tonnes (MT), an increase of about 8.07 million tonnes (2.32%) as compared to the year 2021-22.
The first advance estimate for FY25 indicated a food grain production of around 165 million metric tons. In FY24, India produced over 332 million metric tons of food grains.
The total Kharif foodgrain production for 2024-25, according to the First Advance Estimates, is projected at 1647.05 Lakh Metric Tonnes (LMT), marking an increase of 89.37 LMT from the previous year and 124.59 LMT above the average Kharif foodgrain production.
The Agriculture and Allied industry sector witnessed some major developments, investments, and support from the Government in the recent past. Between April 2000-September 2024, FDI in agriculture services stood at Rs. 26,836 crore (US$ 3.11) billion.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry has cumulatively attracted a Foreign Direct Investment (FDI) equity inflow of about Rs. 1,11,831 crore (US$ 12.96 Billion) between April 2000-September 2024. This accounts for 1.83% of total FDI inflows received across industries.
During 2024-25 (April-May), processed vegetables accounted for US$ 122.91 million, miscellaneous processed items accounted for US$ 302.07 million and processed fruits & juices accounted for US$ 143.51 million.
Moreover, the Indian food processing market is expected to be worth US$ 535 billion by 2025, with a CAGR of 15.2%. The food processing sector employs the most people, accounting for 20.05 lakh or 12.32% of total employment.
In terms of exports, the sector has seen good growth in the past year. India’s agricultural and processed food products exports stood at US$ 4.34 billion in 2024-25 (April-May).
The exports for principal commodities in 2024-25 (April-May) were the following:
- Marine Product: US$ 1.07 billion.
- Basmati and Non-Basmati Rice: US$ 1.96 billion.
- Spices: US$ 769.22 million.
- Buffalo Meat: US$ 551.78 million .
- Sugar: US$ 454.89 million.
- Miscellaneous processed items: US$ 302.07 million.
- Oil Meal: US$ 246.19 million.
The Agricultural and Processed Food Products Export Development Authority (APEDA) is implementing strategic initiatives to diversify India's agricultural exports, focusing on key products like fresh fruits, vegetables, processed foods, and animal products.
In January 2024, The Ministry of Food Processing Industries has approved the following under the corresponding component schemes of PMKSY: 41 Mega Food Parks, 399 Cold Chain projects, 76 Agro-processing Clusters, 588 Food Processing Units, 61 Creation of Backward & Forward Linkages Projects, and 52 Operation Green projects.
In December 2023, NBCC signed an MoU with the National Cooperative Development Cooperation (NCDC) and NABARD for the construction of (1,469-grain storage units) the world’s largest grain storage plan in the cooperative sector.
In December 2023, Tata-owned Rallis India launched NAYAZINC fertilizer.
In December 2023, NITI Aayog and IFPRI signed a Statement of Intent to strengthen policy frameworks for agricultural transformation and rural development.
In November 2023, India signed deals to export 5,00,000 tons of new season basmati rice in Europe and the Middle East.
In October 2023, the President of India launched the Fourth Krishi Road map of Bihar.
In October 2023, Coal India, partnered to invest Rs. 3,095 crore (US$ 371.69 million) in fertiliser JV to boost output.
The Centre has granted permission to 5 private companies to conduct cluster farming of specified horticulture crops on approximately 50,000 hectares on a trial basis, with a total investment of Rs. 750 crore (US$ 91.75 million). The 5 companies chosen through a bidding process for the pilot cluster farming program are Prasad Seeds, FIL Industries, Sahyadri Farms, Meghalaya Basin Management Agency.
27,003 Loans have been sanctioned in the country under credit linked subsidy component of the PM Formalisation of Micro Food Processing Enterprises Scheme (PMFME).
In June 2023, Mother Dairy invested Rs. 400 crore (US$ 48.33 million) to set up a unit in Nagpur.
In July 2022, PM Formalisation of Micro food processing Enterprises (PMFME) scheme was launched for providing financial, technical, and business support for setting up/ upgradation of micro food processing enterprises in the country with an outlay of Rs. 10,000 crore (US$ 1.27 billion).
In October 2022, Prime Minister Mr. Narendra Modi inaugurated PM Kisan Samman Sammelan 2022 and released PM-KISAN Funds worth Rs. 16,000 crore (US$ 1.93 billion).
In August 2022, a Special Food Processing Fund of Rs. 2,000 crore (US$ 242.72 million) was set up with National Bank for Agriculture and Rural Development (NABARD) to provide affordable credit for investments in setting up Mega Food Parks (MFP) as well as processing units in the MFPs.
In August 2022, Mr. Narendra Singh Tomar, Minister of Agriculture and Farmers Welfare inaugurated 4 new facilities at the Central Arid Zone Research Institute (CAZRI), which has been rendering excellent services for more than 60 years under the Indian Council of Agricultural Research (ICAR).
A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies such as improved variety seeds of crops, new breeds/strains of livestock and fish, and improved production and protection technologies reach farmers.
Prime Minister of India launched the Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan) Benefits under the PM Kisan plan have been delivered to about 11.78 crore farmers as of February 22, 2022, and Rs. 2.60 lakh crore (US$ 31.29 billion) have been released to qualified recipients across India in various payments.
As per the Union Budget 2025-26:
- Prime Minister Dhan-Dhaanya Krishi Yojana - Agri Districts Programme: A partnership with states to launch a programme covering 100 low-productivity districts, benefiting 1.7 crore farmers through improved crop intensity, credit access, and productivity.
- Building Rural Prosperity and Resilience: A multi-sectoral initiative with states to tackle under-employment in agriculture, promoting skilling, investment, technology, and strengthening the rural economy. Phase-1 targets 100 developing agri-districts.
- Mission for Aatmanirbharta in Pulses: A six-year initiative to enhance domestic production of Tur, Urad, and Masoor, with NAFED and NCCF procuring pulses from farmers for the next four years.
- Comprehensive Programme for Vegetables & Fruits: A state-partnered programme focusing on production, supply chain efficiency, processing, and ensuring remunerative prices for farmers.
- Makhana Board in Bihar: Establishment of a dedicated board to improve the production, processing, value addition, and marketing of Makhana.
- National Mission on High Yielding Seeds: Aimed at boosting research and development, commercial availability, and distribution of over 100 high-yield seed varieties to enhance agricultural productivity.
- Sustainable Fisheries Framework: Introduction of a sustainable fisheries framework focusing on the harnessing of resources from the Indian Exclusive Economic Zone and High Seas, with a special emphasis on the Andaman & Nicobar and Lakshadweep Islands.
- Mission for Cotton Productivity: A five-year mission to significantly improve cotton farming productivity and sustainability, focusing on extra-long staple cotton varieties.
- Enhanced Credit through KCC: The loan limit under the Modified Interest Subvention Scheme increases from Rs. 3 lakh (US$ 3,445) to Rs. 5 lakh (US$ 5,742) for loans under the Kisan Credit Card (KCC).
- Urea Plant in Assam: A new plant with an annual capacity of 12.7 lakh metric tons will be established at Namrup, Assam.
- The agriculture sector's budget has increased from Rs. 11,915.22 crore (US$ 1.38 billion) in 2008-09 to Rs. 1,22,528.77 crore (US$ 14.21 billion) in 2024-25.
- Food grain production has surged from 204.6 million tonnes (2004-05) to an estimated 332.3 million tonnes (2023-24).
- The MSP for paddy and wheat has risen significantly from Rs. 850 (US$ 9.86) and Rs. 1,080 (US$ 12.53) per quintal in 2008-09 to Rs. 2,300 (US$ 26.69) and Rs. 2,425 (US$ 28.14) per quintal in 2023-24, respectively.
- The total MSP paid to farmers increased from Rs. 4.40 lakh crore (US$ 51.04 billion) and Rs. 2.27 lakh crore (US$ 26.34 billion) in 2004-13 to Rs. 12.51 lakh crore (US$ 145.14 billion) and Rs. 5.44 lakh crore (US$ 63.14 billion) in 2014-24, respectively.
- Farmer-Centric Initiatives
- PM-KISAN: Rs. 3.46 lakh crore (US$ 40.14 billion) disbursed to support farmers.
- PMFBY: Rs. 1.65 lakh crore (US$ 19.14 billion) in claims under the Pradhan Mantri Fasal Bima Yojana (PMFBY).
- e-NAM: Over 1,400 mandis integrated for better market access.
- Agricultural Infrastructure Fund (AIF): Sanctioned Rs. 52,738 crore (US$ 6.12 billion) for 87,500+ projects to improve post-harvest management.
- Farmers will soon have access to 109 new high-yielding, climate-resilient varieties of 32 field and horticulture crops.
- In the next 2 years, 1 crore farmers will adopt natural farming with certification and branding support. Scientific institutions and gram panchayats will manage this, along with establishing 10,000 bio-input resource centres.
- To achieve self-sufficiency in pulses and oilseeds, efforts will be made to enhance their production, storage, and marketing. A strategy is being implemented to ensure 'atmanirbharta' for mustard, groundnut, sesame, soybean, and sunflower, as announced in the interim budget.
- Large vegetable production clusters will be developed near major consumption centres. This will promote Farmer-Producer Organizations, cooperatives, and start-ups for the collection, storage, and marketing of vegetables.
- Building on the pilot project's success, the government and states will implement Digital Public Infrastructure (DPI) in agriculture, covering farmers and their lands in 3 years. This year, a digital crop survey for Kharif will be conducted in 400 districts, registering 6 crore farmers and their lands. Jan Samarth-based Kisan Credit Cards will also be issued in 5 states.
- Financial support will establish Nucleus Breeding Centres for Shrimp Broodstocks. NABARD will facilitate financing for shrimp farming, processing, and export.
- Financial support will be provided to set up 50 multi-product food irradiation units in the MSME sector. Additionally, 100 NABL-accredited food quality and safety testing labs will be established.
- India’s seafood exports reached a record US$ 7.17billion (Rs. 60,000 crore) last year, with frozen shrimp accounting for about two-thirds of the total. To boost competitiveness, it is proposed to reduce the BCD on specific broodstock, polychaete worms, shrimp, and fish feed to 5%, and to exempt customs duty on inputs for shrimp and fish feed production.
As per the Economic Survey 2024-25:
- For FY25, the MSP for arhar and bajra has been increased by 59% and 77% over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89%, while rapeseed has seen an impressive increase of 98%.
- Since FY16, the government has implemented the Per Drop More Crop initiative under PMKSY, covering 95.58 lakh hectares by December 2024 with Rs. 21,968.75 crore (US$ 2.57 billion) released to states for micro-irrigation, offering 55% subsidy to small/marginal farmers and 45% to others. From 2018 to 2024, loans worth Rs. 4,709 crore (US$ 551 million) were approved under the Micro Irrigation Fund (MIF), with Rs. 3,640 crore (US$ 426.5 million) disbursed, supported by a 2% interest subvention to states.
The agriculture sector in India is expected to generate better momentum in the next few years due to increased investment in agricultural infrastructure such as irrigation facilities, warehousing, and cold storage. Furthermore, the growing use of genetically modified crops will likely improve the yield for Indian farmers. India is expected to be self-sufficient in pulses in the coming few years due to the concerted effort of scientists to get early maturing varieties of pulses and the increase in minimum support price.
