Agriculture in India

Euromonitor International
March 2021
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LIST OF CONTENTS AND TABLES

Headlines ..................................................................................................................................... 1
Prospects ..................................................................................................................................... 1
Smallholder farmers hit the hardest by COVID-19 induced disruptions .................................... 1
Cattle farming revenues to benefit from recoveing milk prices in 2021 ..................................... 1
Facing resistance, government suspends new farm bills in 2021 ............................................. 2
Competitive Landscape ................................................................................................................ 2
Investments into technology and innovation remain strong in 2020 ......................................... 2
Industry Overview ......................................................................................................................... 2
Chart 1 Turnover 2004-2024, LCU million................................................................. 2
Chart 2 Value Added 2014-2019, LCU million .......................................................... 3
Chart 3 Profit and Profit Margin 2014-2019............................................................... 3
Chart 4 Turnover and Growth by Category 2019, LCU million .................................. 4
Chart 5 Cereals And Crops Turnover 2004-2024, LCU million ................................. 4
Chart 6 Cattle Turnover 2004-2024, LCU million ...................................................... 5
Chart 7 Fruits And Vegetables Turnover 2004-2024, LCU million ............................ 5
Chart 8 Agricultural Services And Hunting Turnover 2004-2024, LCU million .......... 6
Chart 9 Swine And Pigs Turnover 2004-2024, LCU million ...................................... 6
Chart 10 Absolute Growth by Category, LCU million .................................................. 7
Cost Structure .............................................................................................................................. 7
Chart 11 Cost Structure 2019, LCU million ................................................................. 7
Chart 12 B2B Costs and Growth 2019, LCU million .................................................... 8
Trade ............................................................................................................................................ 9
Chart 13 Imports, Exports and Trade Balance 2014-2019, LCU million...................... 9
Chart 14 Exports 2014-2019, LCU million ................................................................... 9
Chart 15 Exports Share by Category 2014-2019, % of Total Exports ......................... 9
Chart 16 Exports by Country 2014-2019, LCU million .............................................. 10
Chart 17 Exports Share by Country 2014-2019, % of Total Exports ......................... 10
Chart 18 Imports 2014-2019, LCU million ................................................................. 11
Chart 19 Imports Share by Category 2014-2019, % of Total Imports ....................... 11
Chart 20 Imports by Country 2014-2019, LCU million............................................... 12
Market Structure ......................................................................................................................... 12
Chart 21 Market Structure by Category 2014-2019, LCU million .............................. 12
Chart 22 Market Share by Category 2014-2019, % of Total Market ......................... 13
Chart 23 Market Structure 2014-2019, LCU million .................................................. 13
Buyers ........................................................................................................................................ 14
Chart 24 Market Structure by Buyer 2019, LCU million ............................................ 14
Chart 25 B2B Buyers and Growth 2019, LCU million ................................................ 14
Firmographics............................................................................................................................. 15
Chart 26 Employment Statistics and Productivity 2014-2019.................................... 15
Chart 27 Industry Concentration 2014-2019, % Share of Turnover .......................... 16
Chart 28 Turnover Performance by Company 2014-2019 ........................................ 16
Digital Business .......................................................................................................................... 17
Chart 29 Share of E-Commerce Activities 2019-2024, % ......................................... 17
Chart 30 Number of Companies Receiving Orders Online 2014-2019 ..................... 17
Chart 31 Number of Companies Placing Orders Online 2014-2019 ......................... 18

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Chart 32 Revenue from E-Commerce, 2014-2019, LCU million ............................... 18

Industry Context ......................................................................................................................... 19
Chart 33 Attractiveness Index in Selected Industries 2019 ....................................... 19
Chart 34 Industry vs GDP Performance 2004-2024, % y-o-y Growth ....................... 19
Chart 35 Agriculture vs Other Industries 2004-2024, LCU million ............................. 20
Chart 36 Industry Turnover by Region 2019, USD million ........................................ 20
Chart 37 Agriculture in Asia Pacific 2004-2024, USD million .................................... 21

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AGRICULTURE IN INDIA
HEADLINES
▪ Agriculture turnover contracts by 6% in 2020, heavily affected by COVID-19 induced supply
bottlenecks, labour force shortages and fluctuating prices
▪ New farm bills aimed at liberating the India’s agricultural market face severe criticism from the
SME agricultural producers
▪ Industry is to advance at 8% CAGR over 2020-2025, on the back of projected swelling in
domestic demand for agricultural products, recovering economic growth and strengthening
production prices

PROSPECTS

Smallholder farmers hit the hardest by COVID-19 induced disruptions

Similar to other industries, Agriculture in India has experienced COVID-19 induced
disruptions, leading to declining industry’s revenues during the year. The national lockdown, put
in force in March 2020, has had a significant impact on Indian farming, creating shortages of
labour and equipment. Small-holder Indian farmers, which account for nearly half of country’s
crop and cereal production, often rely on migrant workers to assist during harvest, while small
farms also are likely to rent the expensive harvesting equipment. Limited access to seeds,
fertilizers and pesticides as well as transportation restrictions created further challenges for
Indian farmers. Nevertheless, as the country comes to grip with managing the pandemic over
the second part of the year, 2021 spring harvest is expected to pick up.
Governmental stimulus packages and funding for Indian farmers are to play a key role in
securing the favourable trend. Namely, an INR1.5 trillion farm sector’s relief package has been
made available in May 2020, aimed at freeing up the trade curbs and stock limits in the farming
market. Out of the total sum, INR1 trillion is to be directed towards setting up facilities for
procuring, storing and marketing agricultural produce as well as securing post-harvest
management infrastructure. Overall, according to Ministry of Agriculture and Farmers Welfare
estimates, total food grain output is expected to achieve a 2.0% increase in volume output in
2020-2021 crop season, compared to the same period the year before.

Cattle farming revenues to benefit from recoveing milk prices in 2021

Indian cattle farmers have also experienced difficult year in 2020. After lockdown has been
put into force in March, the price for milk has plummeted to record lows, reacting to drop in
demand from hotel, restaurant and catering businesses. In April, milk price has fallen to INR15-
16 per litre, down from pre-pandemic levels of INR30-32 per litre. As prices remained supressed
over the summer months, farmers and trade unions have broken into street protests in July by
pouring milk in the streets across the country.
By the beginning of 2021, milk prices have reached the pre-pandemic levels, allowing for
more favourable outlook for India’s cattle farming sector. Increased demand and shortages in
the market supply has provided the positive incentive for raw production prices. The economy is
projected to return to growth during the year, leading to increased activity in foodservice
provider channels, recovering B2B demand and sustaining a positive outlook for cattle farming
revenues during the year.

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Facing resistance, government suspends new farm bills in 2021

India’s parliament has passed three new farm bills in September 2020, aimed to liberalise and
deregulate the market. The Farmers (Empowerment and Protection) Agreement on Price
Assurance and Farm Services Act promotes contract farming, with farmers drawing contracts
with corporate investors for production volumes and set pricing. The Farmers’ Produce Trade
and Commerce (Promotion and Facilitation) Act is aimed at expanding the scope of trade areas
and allowing farmers to sell their produce outside of their designated districts. Finally, Essential
Commodities (Amendment) Act is to remove foodstuff such as cereals, pulses and potato from
list of essential commodities, in turn removing stockholding limits. Nevertheless, the new farm
bills were received with criticism and farmers protests, who fear that the new bills will bring the
end to the minimum support price (MSP) system, while the rapid withdrawal of government’s
role in the country’s agricultural market will allow for big corporates to dictate prices. As a
response for farmers protests, in January 2021, the government has suspended the new laws
implementation, while carrying ongoing negotiations with farmer groups.

COMPETITIVE LANDSCAPE

Investments into technology and innovation remain strong in 2020

Despite weak economic conditions, India still recorded sizable investment during 2020 into its
agri-tech ecosystem. According to a venture capital investor Omnivore, Indian agricultural
technology sector received funding estimated at USD300-350 million over 2020. Meanwhile,
Google committed to invest USD10 billion over the next five to seven years, directing the
funding towards adaptation of digital technologies in agriculture, education and health. The
Google for India Digitization Fund has been announced in July, 2020. Increasing productivity,
deriving from technological advances, is set to assist in further developing India’s agricultural
market and boosting country’s competitiveness in global context.

INDUSTRY OVERVIEW
Chart 1 Turnover 2004-2024, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 2 Value Added 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 3 Profit and Profit Margin 2014-2019

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 4 Turnover and Growth by Category 2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 5 Cereals And Crops Turnover 2004-2024, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 6 Cattle Turnover 2004-2024, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 7 Fruits And Vegetables Turnover 2004-2024, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 8 Agricultural Services And Hunting Turnover 2004-2024, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 9 Swine And Pigs Turnover 2004-2024, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 10 Absolute Growth by Category, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

COST STRUCTURE
Chart 11 Cost Structure 2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 12 B2B Costs and Growth 2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

TRADE
Chart 13 Imports, Exports and Trade Balance 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 14 Exports 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 15 Exports Share by Category 2014-2019, % of Total Exports

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 16 Exports by Country 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 17 Exports Share by Country 2014-2019, % of Total Exports

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 18 Imports 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 19 Imports Share by Category 2014-2019, % of Total Imports

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 20 Imports by Country 2014-2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

MARKET STRUCTURE
Chart 21 Market Structure by Category 2014-2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 22 Market Share by Category 2014-2019, % of Total Market

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 23 Market Structure 2014-2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

BUYERS
Chart 24 Market Structure by Buyer 2019, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 25 B2B Buyers and Growth 2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

FIRMOGRAPHICS
Chart 26 Employment Statistics and Productivity 2014-2019

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 27 Industry Concentration 2014-2019, % Share of Turnover

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 28 Turnover Performance by Company 2014-2019

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

DIGITAL BUSINESS
Chart 29 Share of E-Commerce Activities 2019-2024, %

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 30 Number of Companies Receiving Orders Online 2014-2019

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 31 Number of Companies Placing Orders Online 2014-2019

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 32 Revenue from E-Commerce, 2014-2019, LCU million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

INDUSTRY CONTEXT
Chart 33 Attractiveness Index in Selected Industries 2019

Source: Euromonitor International from official statistics, trade associations, trade press, company research.
Note: Attractiveness index (IA) is derivative variable, which shows how selected industry performs in
comparison with other industries in an economy. IA is based on a set of variables. For each variable all
industries in the economy are ranked and get corresponding rate from 1 at the very bottom to 177 at the
very top. When all ranks are available weighted average is calculated and corresponding percentile is
assigned. The higher IA the better industry performance is.

Chart 34 Industry vs GDP Performance 2004-2024, % y-o-y Growth

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 35 Agriculture vs Other Industries 2004-2024, LCU million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 36 Industry Turnover by Region 2019, USD million

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Source: Euromonitor International from official statistics, trade associations, trade press, company research.

Chart 37 Agriculture in Asia Pacific 2004-2024, USD million

Source: Euromonitor International from official statistics, trade associations, trade press, company research.

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