EMIS Insights - India Agribusiness Sector Report 2022-2023

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Copyright © 2022 EMIS, an ISI Emerging Markets Group company. All rights reserved.
In FY2022, India’s agriculture and allied sectors proved their resilience after achieving growth despite
the country tallying the second-highest number of COVID-19 cases globally. This speaks of the
resilience of the sector which employs roughly half of the Indian workforce, especially those in rural
communities. The sector retained its position in the global markets as one of the largest producers of
many commodities. Nevertheless, the pandemic has highlighted some of the underlying challenges
of the sector, which include unnecessary long supply chains, heavy manual labor, and limited access
to formal credit for farmers and fishermen, amongst others.
There is still much need – and room for - improvement of productivity in the sector, which means that
with the right adoption and implementation of technological processes, there is so much more that
the sector can do. In Budget 2022, the Indian government made a generous allocation to the sector,
with more focus on the allied sectors, in order to promote higher crop diversification. The budget has
also provided an allocation for support to agritech start-ups and to various technological initiatives
such as the use of drone-based technologies. While support from the private sector and the
government is present, the right implementation of various stakeholders will be crucial as the sector
gears towards improved productivity.
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Copyright © 2022 EMIS, an ISI Emerging Markets Group company. All rights reserved. 6
Data are for FY2021.
Source: Department of Animal Husbandry, Dairying and Fisheries, Department of Agriculture and Cooperation , Ministry of
Commerce and Industry, CEIC
7
Rich in natural resources and a large working population, agribusiness in India is blessed with the
crucial factors which make the sector flourish. The agribusiness sector of India is recognised globally
as the leader in the production of many important commodities. The sector is also the largest in India
by employment – engaging approximately 40% of the country’s total workforce. It literally and
metaphorically feeds the other sectors by providing inputs to India’s tourism, hospitality, and food
processing and services, amongst other sectors. FY2021 was a challenging period for the agriculture
and its allied sectors as the full-blown impact of COVID-19 was felt from the start until the end.
Entry to the sector depends on the specific activity in mind. Foreign entrants are allowed 100%
ownership under the automatic route as long as the activity falls under the selected agricultural
activities set by the government. Automatic route means that the foreign investor or the Indian
company do not need approval from the RBI or the Indian government to undertake the investment.
Activities under the automatic route includes animal husbandry, fish farming, aquaculture,
horticulture, floriculture, apiculture, and tea production, amongst others.
Aside from agriculture production activities, the sector is open to many opportunities which provides
support to traditional activities. For instance, farm management services, agricultural inputs, and
logistics services are existing opportunities given that the sector needs a boost of productivity.
Relatedly, the highly manual labor in the sector provides an opportunity for many technological
advancements. An example of this is smart agriculture which is the use of technology and other
related solutions to improve productivity, maximize yield, and minimize wastage of harvests. It uses
concepts such as GPS, soil scanning, data management, and internet of things (“IoT”) technology to
improve operations. In addition to introducing technology, it has become an imperative to also
shorten the value chain of many products or to bring farmers to consumers as close as possible.
Capacity building in value chain shortening has the chance of benefitting both consumers and
producers through reduced costs and increased income, respectively.
Increasing output and food security has been the Indian government’s objective. While these two
have been generally achieved, it was observed that farmers’ welfare has not improved much over the
past years. To address this, the government has targeted to double farmer income by 2022.
Meanwhile, in Budget 2022, the government aims to further diversify the outputs of the agriculture
and allied sectors by increasing the allotment to animal husbandry and fisheries.
Source: Food and Fertilizer Technology for the Asian and Pacific Region, DPIIT, National Institution for Transforming India
8
Source: Central Statistics Office, Company Data, World Bank
9
FY2021 was arguably India’s worst year during the pandemic. The country saw the peak of various
restrictions and lockdowns amid the much more contagious and deadly second wave of COVID-19
when active cases totaled approximately 2.5mn at a single day. Despite the unfavorable year, India’s
agriculture and allied sectors managed to grow by 7% based on the latest estimates. Many have
viewed this as a testament to the sectors’ robustness and resilience amidst one of the worst crises in
many years.
The vastness of India’s natural resources make the country suitable for agriculture activities.
According to the Food and Agriculture Organization of the United Nations (“FAO”), in 2018, the country
had the second-largest arable land, or close to 11%, and the seventh largest agricultural land, or close
to 3%, of the world’s total. In addition, India is also home to 10% of the global fish diversity. Globally,
India leads in the production of milk, pulses, spices, jute, and tea. It is also one of the top producers
of fruits and vegetables, poultry, rice, wheat, and cotton. In terms of aquaculture production, India
ranks second in the world.
India has two agricultural seasons – kharif and rabi. The kharif season, or summer, runs between April
and September; while the the rabi season, or winter, runs between October and March. Crops grown
during the kharif season include paddy rice, maize, sorghum, pearl millet, soyabean, groundnut, and
cotton; while crops grown during the rabi season include what, maize, barley, oats, chickpeas, linseed
and mustard.
In FY2021, production of foodgrains and horticulture crops increased by 2% and 3% y/y, respectively,
while oilseed recorded a 12% increase y/y due to higher yields and acreage. Despite the increasing
production of oilseed, India remains import-dependent as approximately 70% of domestic
consumption is being sourced from the global markets. Sugar, cotton, and coffee likewise recorded
growth in production during the fiscal year while tea production dropped due to lower demand
internationally and from the competition with cheaper alternatives sourced from abroad. The
Department of Animal Husbandry and Dairying and the Department of Fisheries have not yet released
their estimates for FY2021; nevertheless, the production of meat, milk, eggs, and fish were all expected
to grow albeit at a rate tempered by the pandemic.
The government of India used to target increasing productivity of the agriculture sector through the
implementation of various technologies used to ensure food security of the general population.
However, while these programmes resulted in increased output and self-sufficiency, they did not
result in an increase in farmers’ income as evidenced by the high poverty incidence of most farmers
and their relatively low income compared to that of workers in other sectors. Hence, the government
has been targeting to increase farmers’ income in 2022.
Source:
Source: FAO, Grant Thornton, World Bank, PRS India
10
The outlook is generally positive for agriculture and its allied sectors In India. Through support from
the government, mainly through input subsidies, minimum support price, and technological
initiatives, growth is expected to be sustained. Grain production will likely remain a significant part of
the sector’s output, especially rice and wheat, with the latter achieving a record-high production in
the 2022 crop year. But with the Indian government’s promotion of the allied sectors, it is expected
that production of higher-value products such as fruit and vegetables will gain more traction. In fact,
horticulture crops, which include fruits and vegetables, posted record-high production in FY2021, an
increase of 10.5mn tonnes. These crops however continue to face the issue of wastage, as
approximately 30% of production goes into waste due to lack of proper storage infrastructure. India is
expected to keep importing edible oils in substantial quantities as consumption is projected to grow
faster than domestic production. Nevertheless, the Indian government continues to encourage the
production of this highly-demanded commodity. The resumption of normalcy and the continuous
recovery of food processing and food service businesses both in the domestic and the global markets,
will help sustain growth in meat and dairy production. Meanwhile, fisheries and aquaculture stand to
benefit from the shifting to high-protein diet of a significant portion of the population, and from
export demand as well. Across the sector, two factors are likely to negatively impact the outlook –
first, is the decreasing share of the sector in India’s total employment as more Indians enter the
service and manufacturing sectors; second is the issue of productivity, as India struggles to boost
productivity relative to its competitors in the global market. To partially address the latter, adoption
of technology in agriculture or agritech has been gaining traction in the past years and is expected to
grow in the next few years with investments projected to be ranging from USD 30bn to USD 25bn by
2025.
Source: World Grain, Outlook India, Dairy Industries, Invest India, IBEF
11
As India and the rest of the world gradually recover and adapt to the changes the pandemic has
caused, the potential for agriculture and its allied sectors becomes more favorable as the demand will
likely pick up both in the local and global markets. Economic growth bodes well for agribusiness,
which is one of the backbones of the country’s growth and development. As segments such as food
processing, food service, hospitality, and tourism recover, the agriculture sector will benefit, given
that demand from these sectors drive demand for most crops. Demand will also pick up as a result of
India’s growing population and the rise of the middle class population. Meanwhile, technological
advancements in the country has been spilling over to the sector. Specifically, the agritech landscape
in India has been making progress in improving sector productivity. Under agritech, the growing
segments include those which involve IoT-powered agriculture and drones, precision agriculture and
farm management, finance and insurance, and smart farm equipment, among others. By 2025, Ernst
and Young estimates the value of agritech in India to be at USD 24bn.
The government of India has acknowledged the importance of agriculture and its allied sectors in
sustaining the economic growth of the country. This has important implications as it will ensure that
the government will continue to support the sector through various policies and programmes. In the
Budget 2022, the allied sectors of fisheries and animal husbandry, and dairy received an increase in
allocations by 73% and 26%, respectively. Acknowledging the need to boost the domestic production
of oilseeds, the Budget 2022 likewise allocated more funds to this commodity. However, the budget
for agriculture research was kept at the same level, which does not bode well as R&D has been proven
to increase returns. Meanwhile, demand for healthy yet reasonably priced food will continue to pick
up as the health-conscious population continues to expand. This will likely benefit the sector
especially horticulture and fisheries.
Source: The Hindu, India Briefing, The Hindu Business Line, Economic Times, CNBC, Al Jazeera, Aqua Culture Alliance
12
While the impact of the pandemic was relatively less severe to the agriculture and its allied sectors, it
can be said the impact was more of an indirect one. For instance, as the pandemic puts stress on the
banking sector, access to credit became more limited and difficult for many of the small players in
the sector. Logistics and transportation was likewise affected which caused complications to the
already complex supply chains within the sector. In addition to the pandemic, the urge to shape the
sector’s climate-resistance has always been present as the sector has to constantly go through
various calamities such as droughts, floods, and other threats arising from climate change. On top of
these, more than half of India’s arable land is dependent on rainfall which could dictate productivity
and incomes to many farmers. Increase in the overall demand and inefficient usage of water might
also contribute to water shortage in India. Estimates suggest that India loses USD9-10bn annually due
to extreme weather conditions. To further complicate this is the fact that many Indian farmers are not
covered by insurance as they find it challenging to integrate themselves in the formal economy.
Relatedly, access to agricultural credit, especially to small and marginal farmers, is also difficult given
that most of them are outside the formal economy. The Reserve Bank of India (“RBI”) estimates that
only at most 40% of these farmers have access to formal credit.
Improvement of productivity has always been one of the main constraints of the sector despite it
being one the leading producers globally of many agricultural products. This issue has been a
commingling of many factors although the lack of access to latest technologies of many farmers and
fishermen, especially the small-scale players, is arguably a leading cause of such issue which then
translates to manual labor for many of these farmers and fishermen. The sector’s supply chain is also
inherently complex, and this was highlighted by the lockdowns imposed amidst the pandemic. The
sector is also characterized with a high level of wastage which helps explain why hunger in India
remains high despite it being the leading producer in many aspects. In addition, the sector has been
unprofitable, according to a study of the Organisation for Economic Cooperation and Development
(“OECD”). The unprofitability mainly stems from the obsession of keeping prices low in order to avoid
inflation. While the government has aimed at striking a balance between the prices consumers pay
and the prices farmers receive, farmers’ income have been compromised ultimately. In addition,
minimum supported prices (“MSP”) have been lower than international market prices.
Source: Economic Times, International Food Policy Research Institute, Mint, CNBC, The Print, Financial Express, Times of India
13
FY2017 FY2018 FY2019 FY2020 FY2021
Total Population, mn, year-end 1,299 1,314 1,327 1,341 1,355
GDP, current prices, INR bn 153,917 170,900 188,870 203,510 197,457
GDP, constant FY2012 prices, INR bn 123,082 131,446 140,033 145,693 135,127
GDP, y/y change, % 8.26% 6.80% 6.53% 4.04% -7.25%
GDP per Capita, USD 1,768 2,018 2,037 2,111 1,968
GVA at Current Price, INR bn 139,652 155,057 171,612 184,613 179,152
GVA Agriculture, Forestry, and Fishing,

25,187 28,298 30,163 33,940 36,165
Current Price, INR bn
Consumer Price Index (FY2012=100), year

4.50% 4.38% 2.91% 5.94% 5.83%
average y/y change, %, calendar year
Wholesale Price Index (FY2012=100), y/y

3.45% 4.26% 1.90% 0.54% 10.70%
change, %
Official Exchange Rate, INR/USD, year-

65.12 68.40 70.40 74.11 73.93
average, calendar year
Monetary Policy Rate: Repo Rate, %, year

6.15 6.25 5.73 4.26 4.00
avrage
Total Exports, USD bn 275.85 303.53 330.08 313.33 291.62
Total Imports, USD bn 384.36 464.71 514.05 474.71 392.01
Total Agriculture Exports, USD bn 29.13 33.25 32.60 30.73 35.57
Total Agriculture Imports, USD bn 22.71 21.74 17.80 18.09 19.66
Total FDI Inflow, USD mn 43,477 44,857 44,366 49,977 49,977
FDI in Agricultural Machinery, USD mn 15.19 17.2 5.78 102.32 142.58
FDI in Agricultural Services, USD mn 76.43 110.19 88.07 45.72 124.26
Source: RBI, CSO, Ministry of Commerce and Industry, DPIIT, CEIC
15
FY2017 FY2018 FY2019 FY2020 FY2021
Rice Production, mn tonnes 109.7 112.9 115.6 118.9 120.3
Wheat Production, mn tonnes 98.5 99.7 99.1 107.9 109.2
Production of Coarse Cereals, mn tonnes 43.8 47.0 42.6 47.8 49.4
Production of Pulses, mn tonnes 23.1 25.2 24.0 23.0 24.4
Total Foodgrain Production, mn tonnes 275.1 284.8 281.4 297.5 303.3
Total Oilseed Production, mn tonnes 31.3 31.3 31.5 297.5 303.3
Total Production of Horticulture Crops, thou tonnes 300,643.0 306,817.7 310,738.0 320,470.0 331,047.0
Production of Fruit, thou tonnes 92,918.0 97,054.8 97,967.0 102,080.0 103,027.0
Production of Vegetables, thou tonnes 178,172.0 179,691.8 183,170.0 188,284.0 197,230.0
Production of Spices, thou tonnes 8,122.0 8,369.0 9,428.0 10,137.0 10,679.0
Tea Production, mn kg 1,250.5 1,325.1 1,350.0 1,360.8 1,283.0
Coffee Production, thou tones 312.0 316.0 319.5 298.0 334.0
Cattle Meat Production, thou tonnes 337.9 350.2 326.5 308.7 n/a
Buffalo Meat Production, thou tonnes 1,451.0 1,430.4 1,545.8 1,585.0 n/a
Sheep Meat Production, thou tonnes 556.4 602.8 678.0 768.8 n/a
Goat Meat Production, thou tonnes 1,041.1 1,042.9 1,097.9 1,179.9 n/a
Pig Meat Production, thou tonnes 468.8 396.0 404.5 414.5 n/a
Poultry Meat Production, thou tonnes 3,463.7 3,766.9 4,061.8 4,343.0 n/a
Total Meat Production, thou tonnes* 7,318.9 7,589.2 8,114.5 8,600.0 n/a
Production of Mik from Crossed Cows, thou tonnes 43,778.6 47,151.4 51,259.1 56,861.4 n/a
Production of Milk from Non-Descripts Cows, thou tonnes 34,320.3 36,482.1 38,574.5 39,779.2 n/a
Production of Milk from Buffaloes, thou tonnes 81,266.3 86,261.7 91,817.1 95,906.6 n/a
Production of Milk from Goat, thou tonnes 5,752.4 6,165.5 6,098.7 5,852.8 n/a
Total Milk Production, thou tonnes* 165,117.6 176,060.8 187,749.5 198,400.0 n/a
Egg Production, mn units* 88,137.0 95,220.0 103,800.0 114,380.0 n/a
Per Capita Availability of Milk, g/day 351.0 370.0 390.0 406.0 n/a
Per Capita Availability of Eggs units/year 68.0 73.0 79.0 86.0 n/a
Marine Fish Production, thou tonnes* 3,625.1 3,756.0 3,853.0 3,727.0 n/a
Inland Fish Production, thou tonnes* 7,806.0 8,948.0 9,720.0 10,437.0 n/a
Total Fish Production, thou tonnes* 11,431.1 12,704.0 13,573.0 14,164.0 n/a
Seed Fish Production, mn fry 35,435.0 35,743.9 48,197.4 52,170.6 n/a
Source: Department of Agriculture and Cooperation, Tea Board India, Coffee Board India, Department of Animal Husbandry,
Dairying and Fisheries, CEIC
16
The gross value added (“GVA”) of India’s
agriculture and allied sectors stood at 20.2% in
33,940.3
40,000 21%
FY2021. This represents an increase of not only
28,298.3
30,162.8
20.2% 20%
the value of contribution by these activities, but 35,000
25,187.0
also of the percentage after settling at around 30,000
20%
36,165.2
18% for the past years. An economic survey 19%
25,000
revealed that the growth was mainly driven by 19%
18.4%
the allied sectors, especially by livestock, dairy, 20,000 18.3%
18.0% 18%
and fisheries. This growth of the allied sectors are 15,000 17.6% 18%
in line with the goal of doubling farmer income
10,000
by the end of 2022 which suggests a focus on the 17%
allied sectors. In addition, the growth observed 5,000 17%

was in support of the claim that agriculture and 0 16%
its allied sectors were the least affected sectors FY2017 FY2018 FY2019 FY2020 FY2021
during the pandemic. GVA Agriculture, Forestry and Fishing, current prices, INR bn
Share in Total GVA, %
Transport,
Electricity, Gas, Storage,
Agriculture, Trade, Repair,
Mining and Water Supply and Communication
Forestry and Manufacturing Construction Hotels and Financial Services
Quarrying Other Utility and Services
Fishing Restaurants
Services Related to
Broadcasting
FY2017 18.0% 2.3% 16.7% 2.5% 7.7% 18.2% 20.8% 13.6%
FY2018 18.3% 2.2% 16.6% 2.7% 7.7% 18.6% 20.2% 13.8%
FY2019 17.6% 2.2% 16.3% 2.6% 7.9% 18.6% 20.6% 14.1%
FY2020 18.4% 1.9% 14.7% 2.6% 7.4% 18.9% 21.2% 14.9%
FY2021 20.2% 1.6% 14.4% 2.7% 7.2% 16.4% 22.1% 15.4%
Source: CSO
17
37,500
136,400 134,000
31,000
109,200
81,500
14,400
50,900
10,800
7,800
China EU India Russia US Brazil India EU China Thailand
Largest Wheat Producing Countries, 2021f, thou tonnes Largest Producers of Centrifugal Sugar, 2020/21f, thou tonnes
155 15,500
199,086
99
162,341
91
103,276 6,400 6,100
59,488 31 31 4,000
3,050
38,090 32,376 2,300
EU-28 US India Russia China

India EU-28 US Pakistan China Russia India Vietnam Thailand Pakistan US China
Largest Milk Producers, 2019, mn tonnes
Largest Milk Producers, 2021f , thou tonnes Largest Rice Exporters, 2021, thou tonnes
Source: USDA, FAO
18
In FY2021, the outstanding credit of banks to
agriculture increased by 10% which was likely due 16,000 15,181.1
to the Ministry of Finance’s increased target loan 13,679.7 1,551.3
14,000 13,496.3 13,496.3
of disbursements by banks to rural areas. More 11,992.6 1,333.4
1,395.8 11,992.6
12,000
generally, it is in line with helping the agenda of 10,781.8 1,082.2 10,781.8
1,395.8
1,082.2
doubling farmer’s income by 2022. In the FY2023 10,000 932.2 9,961.7
9,042.7 932.2
Budget, the Indian government is targeting to 1,017.1
8,000
1,115.8
further increase credit to agriculture, as, 13,629.8
6,000 12,100.4 12,346.4
according to government views, credit is an 10,910.4 12,100.4
9,849.6 10,910.4
important factor in supporting agriculture output. 4,000 8,944.6
9,849.6
7,926.9
The government also wants farmers to avoid non-
2,000
institutional sources of credit which often entail
0
usurious interest rates, detrimental to output
FY2017 FY2018 FY2019 FY2020 FY2021
potential. FY2015 FY2016
Direct Finance
FY2017 FY2018
Indirect Finance
FY2019
Total
Direct Finance Indirect Finance Total
45
40
35
30
25
20
15
10
5
0
Jul-18
Jul-19
Oct-19
Jul-20
Apr-18
Oct-18
Apr-19
Apr-20
Oct-20
Jan-18
Feb-18
Mar-18
May-18
Jun-18
Aug-18
Sep-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
May-19
Jun-19
Aug-19
Sep-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
May-20
Jun-20
Aug-20
Sep-20
Nov-20
Dec-20
Share of Priority Sector Lending Share of Total Bank Credit
Source: RBI, CEIC, Economic Times, Financial Express
19
Agriculture exports bounced back in FY2021 after witnessing a 6% y/y decline in FY2020. During the
most recent fiscal year, India’s agriculture exports increased by 16% and reached the highest export
level in recent years. The Indian government specifically cited the growth in the export of cereals,
non-basmati rice, wheat, millet, maize, and other coarse grains. Several clusters likewise started to
export their own produce during the same fiscal year while several States finalized their specific
action plan to implement their agriculture export policy. In terms of export destinations, Indonesia,
Bangladesh, and Nepal registered the highest growth y/y as India benefitted from the export of staple
food products amidst the pandemic. Meanwhile, it was India’s first time to export rice to countries
such as Timor-Leste, Puerto Rico, and Brazil and wheat to Yemen, Indonesia, and Bhutan. Exports of
spices such as ginger, pepper, cinnamon, cardamom, saffron, and turmeric grew substantially during
the year. Apart from providing the usual economic assistance, the government helped agriculture
exporters by easing many administrative requirements during the pandemic such as by providing
blanket extensions of accreditations and online issuance of certificates.
Similar to exports, agriculture imports increased in FY2021 although at a lower rate of 9% y/y. India
remained to be a net exporter of agriculture products, thereby, strengthening the case of its self-
sufficiency in terms of agriculture products. The recovery of imports was likely affected by the general
economic recovery of the country as the lockdown started to loosen and vaccines provided the much
needed confidence for the economy to gradually re-open. While the country is self-sufficient in many
agricultural products, it is dependent on the importation of edible oils. In fact, India is the largest
importer of edible oils in the world. Production is low as farmers are less incentivized to focus on
these products compared to other produce such as rice, wheat, and cotton. There is also lack of
infrastructure and technology to boost local production. On the consumption side, Indians heavily
consume edible oil on a regular basis as part of preparing their staple foods. This dependence on
imports is projected to continue as consumption of these oils is expected to increase by 17% over the
next four years. In FY2022, India is estimated to be at a deficit of 13mn tonnes.
Source: Ministry of Commerce and Industry, Business Standard, Economic Times, Al Jazeera, The Hindu Business Line
20
FY2017 FY2018 FY2019 FY2020 FY2021
Live Animals 78.8 63.9 42.9 33.6 8.5
Meat and Edible Meat Offal 4,037.6 4,174.6 3,722.5 3,300.7 3,223.3
Fish and Crustaceans 5,501.1 6,850.9 6,256.9 6,159.2 5,235.4
Dairy, Eggs, Honey and Edible Products 292.9 366.6 538.7 353.6 351.9
Products of Animal Origin 79.8 121.5 132.1 93.7 96.7
Live Trees and Other Plants 81.6 78.7 81.8 76.5 77.8
Edible Vegetables 1,294.7 1,305.6 1,301.7 1,095.6 1,304.5
Edible Fruit and Nuts, Peel or Citrus Fruit or Melons 1,731.2 1,857.1 1,617.4 1,490.8 1,352.9
Preparations of Vegetables, Fruit, Nuts, etc 493.8 584.9 588.5 623.6 702.7
Preparations of Creals, Flour, Starch or Milk 519.1 538.4 535.0 531.2 617.1
Cocoa and Cocoa Preparations 162.2 177.5 192.7 180.1 149.8
Sugars and Sugar Confectionery 1,508.5 1,018.7 1,629.2 2,192.1 3,149.7
Preparations of Meat, Fish, Crustaceans etc 317.3 422.3 432.6 480.1 637.9
Animal or Vegetable Fats, Oils and Waxes 892.6 1,263.9 1,097.6 1,165.7 1,633.2
Vegetable Plaiting Materials 67.8 53.3 54.2 47.4 44.2
Lac, Gums, Resins etc 844.4 1,019.0 1,056.9 822.9 727.3
Oil Seeds, Misc Grains, Medicinal Plants and Straw 1,809.0 1,647.1 1,640.5 1,773.1 1,821.0
Milling Industry Products 218.0 247.4 321.3 334.7 434.5
Cereals 6,013.0 8,151.6 8,160.2 6,672.4 10,103.5
Coffee, Tea, Mate and Spices 3,185.2 3,310.3 3,199.6 3,299.3 3,901.7
Source: Ministry of Commerce and Industry, CEIC
21
FY2017 FY2018 FY2019 FY2020 FY2021
Live Animals 9.2 8.8 9.0 12.2 10.4
Meat and Edible Meat Offal 3.1 4.7 4.6 5.5 1.8
Fish and Crustaceans 58.9 90.5 106.3 129.3 151.6
Dairy, Eggs, Honey and Edible Products 36.4 47.0 32.8 37.5 33.4
Products of Animal Origin 40.2 48.4 44.5 35.7 29.7
Live Trees and Other Plants 20.0 21.2 25.0 32.5 21.7
Edible Vegetables 4,287.4 2,968.8 1,189.1 1,576.2 1,683.8
Edible Fruit and Nuts, Peel or Citrus Fruit or Melons 3,041.6 3,400.8 3,627.7 3,300.2 3,158.9
Preparations of Vegetables, Fruit, Nuts, etc 81.9 102.3 117.6 111.8 87.6
Preparations of Creals, Flour, Starch or Milk 55.0 67.4 94.0 102.9 118.5
Cocoa and Cocoa Preparations 229.7 228.5 263.2 259.0 273.1
Sugars and Sugar Confectionery 1,103.6 1,050.3 543.9 454.1 750.8
Preparations of Meat, Fish, Crustaceans etc 2.9 4.7 5.7 7.6 7.9
Animal or Vegetable Fats, Oils and Waxes 10,946.3 11,700.4 9,994.4 9,867.1 11,308.1
Vegetable Plaiting Materials 37.6 36.8 50.2 80.6 107.6
Lac, Gums, Resins etc 218.7 246.2 254.3 276.8 255.3
Oil Seeds, Misc Grains, Medicinal Plants and Straw 380.9 356.9 573.4 768.4 749.0
Milling Industry Products 60.0 77.1 73.8 73.7 66.5
Cereals 1,343.3 434.1 73.4 182.5 47.8
Coffee, Tea, Mate and Spices 757.8 850.1 720.7 779.7 797.1
Source: Ministry of Commerce and Industry, CEIC
22
143 Telecommuni Construction
cations 11% Trading 3% Development
124.26
9%
110.19 Automobile
Computer
102 Industry 10%
Software &
88.07 Hardware Chemicals
76.43 24% (ex
Fertilizers)
6%
45.72
Constru
ction
17 (Infrastr
15
ucture)
6
4%
FY2017 FY2018 FY2019 FY2020 FY2021 Drugs &

Pharmaceuti
Agricultural Machinery Agricultural Services cals 4%
Hotel &
Services Tourism 4%
Sector 33%
Currently, 100% foreign ownership is allowed in India’s agriculture sector through the automatic route
in selected agricultural activities such as horticulture, floriculture, animal husbandry, and
aquaculture, amongst others. The automatic route is one whereby the non-resident investor is not
required to secure approval from the government prior to investing. Before allowing a 100% foreign
ownership, the agriculture sector was only permitted 45% of foreign capital. However, despite revising
the policy and increasing the allowed foreign ownership to 100%, FDI in agriculture sector has not
been attracting a large share when compared to other sectors in India. Data from the Department for
Promotion of Industry and Internal Trade (“DPIIT”) shows that the agriculture sector does not belong
to the top 10 sectors which received the highest cumulative inflows from April 2000 to September
2020. The lack of quality infrastructure such as storage facilities and efficient irrigation systems, the
large proportion of rain-fed agriculture, and regulatory hurdles are some of the reasons why FDIs to
India’s agriculture sector has remained relatively low. Nevertheless, in the past two fiscal years, a
significant increase in FDI inflows for both agricultural machinery and services were observed. For
agriculture machinery, this may suggest foreign investments on automating or mechanizing
traditional farming activities which has remained an issue for smaller players in the sector.
Source: Department for Promotion of Industry and Internal Trade, Invest India, Market Express
23
The latest data by the International Labor Organization shows that more than 40% of India’s total
employment is in agriculture and its allied sectors. However, there has been a continuous decline in
the past 20 years of this share to total employment in the country. Meanwhile, both services and
industry have completely opposite trends. From 2000 to 2020, services and industry have experienced
increases of 8 percentage points and 10 percentage points, respectively, which suggest a shift of
employment from agriculture to services and industry. Some have regarded the decline as a structural
one, attributing it to an industrialization phase or a shift from agriculture to manufacturing. While
many industrialised nations have also underwent such phase contributing to the argument that it is a
natural phase, there are some factors specific to India. These include insufficient public investment
for the development of the sector, difficulty of farmers in accessing capital, a slow increase in
productivity leading to lower income opportunity, and the vulnerability of the sector to natural
phenomenon such as droughts and floods. In a separate analysis, it was mentioned that there has
been a reduction of prime-age workers in the agriculture sector due to increasing opportunity costs
and with more women being engaged in non-agriculture sectors.
60 59 59 58 57 56 55 54 53 52 52
49 47 46 46 46 45 44 43 42 41
31 31 32 32 32
29 29 30 30
26 26 26 27 28 26 26
24 24 25 25 25 25 26 24 25 25 24 24 25 25
22 23
20 21 21
18 19 19
16 16 17 17
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Agriculture Industry Services
Source: India Together, The Hindu Business Line, International Labor Organization, Mint
24
The predecessor of KRBL Ltd, a leading
Indian integrated rice company, is
established.
India launches the Green Revolution, aimed at Animal husbandry and meat and
achieving food self-sufficiency through raising the processed food manufacturing company
yields of rice and wheat. Venky’s India Ltd (India), (Venky’s), is set
up.
Shrimp feed manufacturer Avanti Feeds

Ltd (India) is established. The National Bank for Agriculture and Rural
Development is established.
The National Horticulture Board (NHB) is established. In

the preceding years, special bodies steering the
development of rice, wheat and cotton are set up too.
Start of organised lending to agriculture in India.

India's central bank, the RBI, advises public sector
banks to prepare Special Agricultural Credit Plans
(SACP).
McLeod Russel India Limited (“MRIL”), the
tea plantation company of the Kolkata-
based B.M. Khaitan Group, is set up.
NHB starts promoting cold storage for horticultural

produce through loans and subsidy schemes.
The government introduces 50:50 profit sharing

between sugarcane farmers and sugar mills.
Avadh Sugar & Energy Limited, (“ASEL”),

part of the Birla Group of Sugar Industries,
is established.
India pledges to double farmer income by 2022, and
substantially raises MSPs for kharif season crops.
India holds general elections that are crucial to

agriculture, as farmers represent the largest group of
voters. India adopts a new federal budget vowing to double
farmer income by the next financial year.
To protect the sector from the impact of the pandemic, The Indian government enacts 3 laws in late 2020 which
the Indian government lays out an economic stimulus PM Modi calls a radical change in the sector; however,
package worth USD 22.5bn – 15% of which is dedicated farmers view these as oppressive and exploitative due
to the agriculture sector. to fear of MSP being neglected.
Source:
26
Primitive subsistence farming, intensive subsistence farming, commercial farming, and plantation
farming as a variant of commercial farming are all present in India. Some states specialise in growing
certain crops commercially, while other states grow the same crops as a subsistence farming activity.
For example, the states of Haryana, Punjab and West Bengal grow rice commercially, while rice is a
subsistence crop in the state of Orissa. Crops typically grown under commercial farming include tea,
coffee, rubber, sugarcane, banana and coconuts. Commercial farming is heavily dependent on
chemical fertilisers, insecticides, pesticides and specialised machinery for higher yield. The need for
these is expected to become more pronounced in the future, with the rise in population and the
limited amount of arable land.
Competition among farmers is almost non-existent, as most depend on the government, which buys
their produce under MSP or other support mechanisms. This system is done under the Agricultural
Produce Market Committee (“APMC”). In general, each state has its own APMC act which effectively
monopolizes the production of farmers through organized markets. The system of APMC has been
known to be notorious as it eats away much of the farmers’ margin. In September 2020, 3 laws related
to the agriculture were enacted – part of which was the removal of APMCs. On a separate note, for
decades, the government has applied various forms of farmer support such as tax exemptions,
subsidies on fertilisers, seeds, energy and water for irrigation, low-interest loans, cheap crop
insurance, high tariffs to block food imports, and price supports for more than 20 crops. India is also
home to some 30% of the world’s organic farmers. The fertiliser market is mature and characterised
by overcapacity and low capacity utilisation. The market is price-driven but is also characterised by
high brand loyalty.
The main players in Indian agriculture are the large seed producing and foodstuff trading companies
which, with government help or independently, establish fellowship programmes, training and other
types of support to farmers wishing to move on from subsistence to commercial farming. India is the
second-largest pesticide producer in Asia, and is among the top five on the global market. The country
is also a net exporter of pesticides, with about 50% of its production sold abroad. Top players include
Tata Chemicals, UPL, BASF India, Bayer India, Monsanto India, Coromandel International and National
Fertilisers. Some agricultural sub-sectors, such as cotton farming, may be over-exposed to
corporations for seed provision.
Source: Toppr, The Economist, DownToEarth, Department of Chemicals and Petrochemicals, Hindustan Times
27
Source: EMIS Company Database
28
Deal Value, Stake,
Date Target Company Deal Type Buyer Country of Buyer
USD mn %
Sabah Forest 310.42
6-Apr-18 Acquisition Albukhary Group Malaysia 100.0
Industries Sdn Bhd (Official)
Elevation Capital;
Matrix Partners India;
Beejapuri Dairy Pvt IIFL Asset Hong Kong SAR, 25
23-Nov-20 Minority stake n/a
Ltd Management Ltd; China; India (Market Est.)
Orios Venture
Partners
Kalaari Capital
Advisors Pvt Ltd;
AgNext Technologies India; United Arab 21
19-Aug-21 Minority stake Omnivore Partners; n/a
Pvt Ltd Emirates (Market Est.)
Alpha Wave
Incubation Fund
India Agri Business
20
31-Aug-18 Nature Bio Foods Ltd Minority stake Fund II; Rabo Equity India n/a
(Official)
Advisors Pvt Ltd
Sathguru Catalyser 6
23-Dec-19 Nu Genes Pvt Ltd Minority stake India n/a
Advisors Pvt Ltd (Market Est.)
Rockstud Capital ;
Ankur Capital
2
11-Aug-20 Bighaat Agro Pvt Ltd Minority stake Advisors; Beyond Next India; Japan n/a
(Market Est.)
Ventures ; Angel
investors
Utkal Tubers India Pvt 1.45

4-Apr-19 Minority stake IPM Potato Group Ltd Ireland n/a
Ltd (Market Est.)
Crofarm Agriproducts 1
2-Jun-20 Minority stake Smile Group India n/a
Pvt Ltd (Market Est.)
5-Oct-21 Karat Farms Pvt Ltd Minority stake Vriksh Impact Partners India n/a n/a
24-Aug-20 Kheyti Tech Pvt Ltd Minority stake Acumen ; Ceniarth United States n/a n/a
Centre for Innovation
Sattvaponics Solutions
11-Oct-18 Minority stake Incubation and India n/a n/a
Pvt Ltd
Entrepreneurship
Suminter India responsAbility
10-Oct-18 Minority stake Switzerland n/a n/a
Organics Pvt Ltd Investments AG
Samir Kumar-private
AgNext Technologies investor ; Omnivore
16-Apr-18 Minority stake Singapore; India n/a n/a
Pvt Ltd Partners India Fund II;
Omnivore Partners
Source: EMIS DealWatch
29
310
Undisclosed
38.5%
2
2
1
1
1
20 25 21
0
0
0
0 0 1 0 6 0 1 2 0 0 0 0 100.1-
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 0-50mn 500mn
53.8% 7.7%
2019 2020 2021 2022
Number of Deals Value of Deals, USD mn
Switzerland
5.6% United States
Minority Hong Kong China 5.6% 5.6%
Stake SAR 5.6% Singapore
Purchase 5.6%
92.3%
Malaysia United Arab
5.6% Emirates
5.6%
Japan 5.6%
Ireland 5.6%
India 50.0%
Acquisition
7.7%
Source: EMIS DealWatch
30
KRBL Ltd (India) (“KRBL”) was originally
established in 1889 in Pakistan as a producer of
oil, wheat, and cotton. In 1890, it moved to India 23.9%
and shifted its focus to rice production instead. 20.4% 20.6% 21.2%
19.8%
KRBL’s integrated rice manufacturing facility has
made it a renowned manufacturer and seller of
44.99
41.20
39.92
basmati and non-basmati rice under the India
32.47
31.49
Gate flagship brand and other known brands such
8.9
8.5
8.4
7.7
as Unity, Doon, Nur Jahan, and Bemisal. It also
5.59
5.58
6.4
5.03
4.34
3.99
has ventured as a multi-segment rice player by

offering health food products, such as basmati
and non-basmati brown rice, chia seeds, and FY2017 FY2018 FY2019 FY2020 FY2021
quinoa, and other milling by-products, such as Net Revenues EBITDA

Net Profit EBITDA Мargin
bran oil, furfural, rice bran, and de-oiled cakes. In
addition to agricultural products, KRBL is also
engaged in power generation business.
In FY2021, KRBL recorded a drop in net revenues

by 11% y/y to INR 39.9bn as a result of lower
realization during the fiscal year. It was the first 1.66
1.63
drop in KRBL’s recent fiscal periods. However, the 1.48
decrease in net revenues was offset by the
decrease in expenses, specifically cost of goods
44.23
sold and interest expenses, which helped KRBL’s

46.36
46.28
net profit to be maintained at approximately the

31.3
38.44
14.09
36.9
34.22
same level with FY2020 or at INR 5.6bn.

11.46
10.48
0.52
27.3
1.35
22.9
KRBL remained to be the largest exporter of

19.1
4.68
branded basmati rice in India. It currently exports 0.16

to more than 90 countries worldwide. This has
FY2017 FY2018 FY2019 FY2020 FY2021
made export sales, which represents roughly 50%
Total Assets Shareholders' Equity
of its revenues, an important aspect of the Net Debt Net Debt/EBITDA
business.
Source: Company Data, EMIS Company Database
32
In 1993, Avanti Feeds Ltd. (“Avanti”) was
established and has now become the leading
manufacturer of prawn and fish feeds as well as 20.1%
the leading processor and exporter of shrimp in
India. It currently has a joint venture with Thai
Union Frozen Products PCL – the world’s largest 12.6%
13.4% 12.7%
13.5%
seafood processor and the leading manufacturer
41.01
34.88
41.15
of prawn and fish feeds in Thailand. It is currently 33.93
26.16
listed in the Bombay Stock Exchange (“BSE”) and 6.8

4.46
5.5
the National Stock Exchange (“NSE”) under the
5.2
3.97
3.86
4.7
3.07
3.3
2.16
symbol “AVANTIFEED”.
FY2021 was a challenging year for Avanti primarily FY2017 FY2018 FY2019 FY2020 FY2021
due to the impact of COVID-19. At the onset of the Net Revenues EBITDA
pandemic, a panic ensued in the aquaculture Net Profit EBITDA Мargin
industry which caused shrimp prices to fall

steeply. There was likewise an apprehension in
the production market as export markets had
appeared generally unfavorable during the early
parts of the pandemic. Despite the hostility of the
past fiscal year, Avanti was able to level its
0.88
results with that of FY2020, owing to the
improved market condition towards the end of
the FY2021 and to it being able to maintain its
22.82
customer base intact despite the pandemic. 0.53

Avanti retained its 48% market share in shrimp
16.15
0.39
feeds and suffered only an 8% drop on its shrimp
18.80
0.67
13.6
0.71
15.26
15.9
19.9
processing segment compared to 20% in the

3.62
11.5
10.69
2.90
2.17
0.15
industry. Avanti expects an increasing 0.13
7.3
competition with exporters from Vietnam,

Thailand, and Ecuador; however, it remains FY2017 FY2018 FY2019 FY2020 FY2021
Total Assets Shareholders' Equity
confident on its US and China markets to keep
Net Debt Net Debt/EBITDA
the business volumes in the export market.
33
Venky’s India Ltd. (“Venkys”) is currently engaged
in various activities in the poultry sector which
15.1%
include egg production, chicken and egg
12.5%
processing, broiler and layer breeding, animal 11.5%
10.3%
health products activities, among others.
32.61
Venkateshwara Hatcheries Private Limited
30.43
25.84
31.17
currently owns 51.02% of Venky’s equity share
24.12
capital. Its shares are also listed in the BSE and

3.9
3.9
2.68
NSE under the symbol “VENKEYS”.
3.1
2.00
2.8
1.74
1.25
Venkys produces and sells day-old broiler and -6.5%
-0.27
layer chicks, specific pathogen-free eggs,
-2.1
processed chicken products and poultry feed. It FY2017 FY2018 FY2019 FY2020 FY2021
also manufactures animal health products and is Net Revenues EBITDA
engaged in oilseed extraction, refining, and sales. Net Profit EBITDA Мargin
In addition, Venkys produces a wide range of

chicken meat-based processed foods and cold
cuts. Its portfolio also includes fry and serve
chicken foods, heat and serve chicken-based
dishes, chicken cold cuts, and chicken bacon.
In FY2021, Venkys saw a marginal drop of its net

revenues by 4%. However, its net profit in FY 2021
soared to INR 2.7bn from a net loss of INR 0.3bn in
17.90
FY2020 on account of higher realizations from the

15.97
15.57
14.31
13.60
sales of day-old chicks and grown-up broilers. Its

3.68
8.8
7.2
11.0
1.97
financial position likewise improved after a

1.14
1.23
8.4
1.32
substantial reduction on it borrowings. 0.50 0.36
-0.57 -0.08
5.3
Venkys outlook for itself is positive owing to the

completion of various expansion projects whose FY2017 FY2018 FY2019 FY2020 FY2021
benefits started to accrue in April 2021 and on the Total Assets Shareholders' Equity
general improvement of the market condition as Net Debt Net Debt/EBITDA
compared to the early parts of the pandemic.
34
Avadh Sugar & Energy Limited (“Avadh”) was
23.2%
formed in 2015 as part of the K.K. Birla Group of
Sugar Industries (“Group”) – one of the leading
sugar manufacturers in India which has a cane
25.59
crushing capacity of 47,000 tonnes daily. Aside
14.0%
27.11
from sugar, the Group is also engaged in the
11.7%
production of other products such as industrial 10.4% 9.8%
21.01
alcohol, processed food products, and tea. Avadh 23.33
18.66
is listed on the NSE, BSE, and Calcutta Stock

4.3
Exchange (“CSE”).
2.9
2.10
2.7
2.7
2.7
1.20
0.89
0.88
0.78
Avadh’s portfolio of products includes sugar,
spirits and ethanol, cogeneration, sanitizer, and FY2017 FY2018 FY2019 FY2020 FY2021
other by-products. Avadh’s sugar segment has Net Revenues EBITDA

remained to be its largest source of revenue – a
result of its investment on energy efficiency
processes which have improved the quality of
sugar and which have reduced energy costs. In
FY2021, its sugar segment accounted for roughly
85% of its total revenues.
5.53
Its net revenues increased by 6% to INR 27.1bn in
4.85
FY2021 while net profit dropped by 12% to INR 4.69 4.55
0.8bn in FY2021. The results were mainly dictated
by the lower realization on sales by the co-
22.25
28.59
26.49
26.09
generation segment. During the second half of

21.21
the fiscal year, realizations from sugar and 2.60

14.77
14.29
ethanol segments aided Avadh’s financial results

12.76
12.10
11.25
for the year. Given the essential nature of sugar,

6.7
5.9
5.1
Avadh is optimistic of its growth in the next fiscal

3.9
3.9
years as the Indian economy recovers from the FY2017 FY2018 FY2019 FY2020 FY2021
pandemic. Total Assets Shareholders' Equity
35
McLeod Russel India Ltd (“McLeod”) is the tea
6.9%
plantation company of the Kolkata-based B.M.
5.9%
Khaitan Group. McLeod was originally
incorporated as Eveready Company India Pvt Ltd
in May 1998. It is primarily engaged in the 3.4%
2.7%
business of cultivation, manufacture and sale of
20.55
18.71
17.20
tea across various geographical locations. It is
14.38
11.43
publicly listed in the NSE, BSE, and CSE.
2.08
1.4
0.64
1.1
0.32
-0.5
0.4
0.4
McLeod has one of the largest plantations
composed of 33 tea estates situated in Assam -2.8%
-0.52
-1.48
and West Bengal. Through its subsidiaries, it also
operates in other countries such as Vietnam, FY2017 FY2018 FY2019 FY2020 FY2021
Uganda, Rwanda, and the UK. Net Revenues EBITDA

Similar to other businesses in the sector,
McLeod’s operations have been significantly
affected by the pandemic. In particular, it has
faced challenges such as suspension of
operations, supply chain disruptions, and lack of
available personnel. While operations have
resumed in May 2020, additional costs have been 56.29
50.78
incurred by McLeod to fix resources left during
the suspension of operations.
15.73
22.19
21.88
McLeod posted a relatively better consolidated 12.89

20.02
49.35
49.06
11.05
45.59
results after tallying a 26% increase in net

38.43
14.20
34.52
revenues to INR 14.4bn. It remained to be in a net

loss position although it moderated to only INR
21.9
20.1
19.8
18.5
18.2
0.5bn compared to INR 1.5bn in FY2020. McLeod’s

-45.98
annual report also reported that it is undertaking
discussions on loan restructuring after not FY2017 FY2018 FY2019 FY2020 FY2021
meeting terms of the loans from various lenders. Total Assets Shareholders' Equity
36
The Ministry of Agriculture and Farmers’ Welfare is the pivotal institution regulating India’s
agricultural sector. The ministry has three departments – Agriculture, Cooperation and Farmers’
Welfare, Animal Husbandry, Dairying and Fisheries, and Agricultural Research and Education. Some of
India’s agriculture policies are developed in cooperation between the Ministry of Agriculture, the
Department of Land Resources, the Ministry of Water Resources, River Development and Ganga
Rejuvenation, amongst others. The Ministry of Agriculture is also in charge of providing estimates for
the agricultural harvest and setting MSPs, among other activities. Separately, there exist multiple
boards in charge of developing specific sectors. These include the Coconut Development Board, the
National Horticulture Board, the Tobacco Board, the Tea Board India, the Coffee Board, and the
Cashew Nuts and Cocoa Development Directorate.
India went through the Green Revolution for crops in the late 1960s to early 1980s, the White
Revolution for milk production in 1970s, and the Gene Revolution for cotton production in early 2000s –
all of which were movements to increase outputs in the agriculture sector as response to the rising
incomes and urbanization and to ensuring food security in the country. While these strategies paid
dividends, they did not directly address increasing welfare of farmers through increased incomes. And
while both outputs and incomes did increase for some farmers, there are many cases as well where
incomes did not increase. Supporting such is the high incidence of poverty among farm households.
Given these, the government was prompted to directly target increasing farmers’ income through
various underlying initiatives; hence, the objective of doubling farmers’ income by 2022.
MSPs are set prices at which the government purchases agricultural products, regardless of their
market prices. These are set to about 24 main crops of the sector. Agricultural output procured that
way is later sold to poorer sections of the population at what are considered to be affordable prices.
The Commission for Agricultural Costs and Prices makes annual price recommendations for five crop
groups, namely kharif crops, rabi crops, jute, copra and sugarcane. Factors taken into account are
costs of production, demand and supply conditions, international prices, terms of trade between
agricultural and non-agricultural goods, and the impact on consumers and the economy. Recently, it
has been thought to set MSPs at 50% over production cost to support the government’s target of
doubling income farmers by 2022. Although MSP policies are important for the financial stability of
farmers, they have a negative effect on the overall price dynamics in the country. MSPs are constantly
increasing, thus feeding into higher inflation up the value chain, and increasing food inflation in the
country.
Source: National Institution for Transforming India, OECD, Grant Thornton
38
The COVID-19 has brought significant impact to the agriculture sector and its allied sectors. The
lockdown has led to a disruption of logistics and transportation, a reduction of manpower, an
increase of wastage levels in commodities, and has depressed demand in both local and international
markets. To soften the impact of the pandemic, the government has introduced various measures
such as financial support and waiver of requirements. In March 2020, the government announced a
stimulus package worth USD 22.5bn – 15% of which was dedicated to the agriculture sector. This
stimulus includes cash transfer to farmers under the PM-Kisan Scheme, voluntary payment of
insurance premiums under the PM Fasal Bima Yojana, and a concession of 3% on the interest rate on
crop loans from the Reserve Bank of India. As India continues to fight against the pandemic, further
reliefs have been granted to the sector. This includes provision of working capital to small and
marginal farmers, procurement by the government of additional produce, relaxation and waiver of
various administrative requirements, and setting up farmgate infrastructure.
In September 2020, the following bills related to the agriculture sector were enacted: (1) The Farmers'
Produce Trade and Commerce (Promotion and Facilitation) Act, (2) Farmers (Empowerment and
Protection) Agreement on Price Assurance and Farm Services Act, and (3) Essential Commodities
(Amendment) Act. PM Modi called the enacted laws as radical changes in the agriculture sector. The
laws will help farmers increase their yields through better access to technology and advanced tools.
In addition, the removal of middlemen will be targeted in order to increase farmers’ takeaway from
their harvests after being constrained by several years. However, Indian farmers expressed their fear
towards the enacted laws as these may be used by big corporations to their disadvantage especially
on the aspect of losing MSPs given that the market would be liberalized to the private sector. Hence,
the contentious laws are being viewed by farmers as unfair and exploitative. This led to protests in
late 2020 where farmers went to the capital to voice out their concerns on the controversial laws.
In the Budget 2022, the allied sectors of fisheries and animal husbandry and dairying received an
increase in allocations by 73% and 26%, respectively, as the government aims to further diversify the
agriculture landscape in the country. Acknowledging the need to boost domestic production of
oilseeds, the Budget 2022 likewise gave an increased allocation for this commodity. It was noted,
however, that budget for agriculture research was kept at the same level which does not bode well as
R&D has been proven to increase returns.
Source: OECD, Hindustan Times, BBC, Indian Express
39
India is a global powerhouse in grain production, ranking on top of the list of many grain products.
For instance, in 2021, it was the largest rice exporter and the largest pulse producer in the world, and
was the third-largest producer of wheat after the EU and China. Such a feat is a commingling of many
factors – one of which is the fact that India has the one of the largest agricultural lands in the world
matched with a generally favorable climate condition. This is complemented with a large population
of smallholder farmers which contribute to over 40% of India’s grain production. Government
initiatives such as the Green Revolution in the 1960s also paved the way for the dramatic increase in
production capacity which later on transformed India into a rice and wheat surplus country. Currently,
India claims to be self-sufficient in a number of food crops, including rice and wheat.
COVID-19 has highlighted the vulnerability of the long supply chains involved in most of the grain
production activities in India as well as the vulnerability of smallholder farmers who have limited
access to resources, healthcare, and financing. Addressing these issues is critical if the sector aims to
shield itself from the impact of forthcoming waves or any events similar to the pandemic.
Unpredictable or extreme climate conditions also bring uncertainty given that grain production is
highly dependent not only on the quality of the weather condition but also on its timing. Another
constraint is the lack of storage infrastructure and the primitive handling of grains which often
results to high level of waste products. Meanwhile, the continuous support of the Indian government
remains a driver. Programmes which have been undertaken are aimed to improve soil fertility, to
improve access to irrigation, to enhance water efficiency, and to support organic farming.
Following expected record-high exports and production of grain produce in 2021, the outlook for grain
production in India remains generally positive despite the disruptions brought by the pandemic.
Pending the final estimates on rice export figures, the USDA estimates that India may have accounted
for 45% of the global rice exports on account of an increased capacity of its ports and increased
demand from China, Vietnam, and Bangladesh. This estimate is more than the combined exports of
the next three large exporters Thailand, Vietnam, and Pakistan. However, for marketing year 2021-2022,
losses were reported although marginal due to the untimely rains in October to November 2021 during
the harvest. For wheat, the USDA estimates 6.5mn tonnes of export for marketing year 2021-2022 on
account a strong export demand and competitive prices of Indian wheat.
Source: WBCSD, Reuters, USDA, Forbes, Ministry of Food Processing Industries, Ministry of Agriculture & Farmers Welfare,
World Grain
41
▪ In September 2021, PM Modi launched 35 crop varieties which are climate resilient as part of the
country’s efforts to combat the challenge of climate change. These varieties are not only climate-
resistant but are also possessing high nutritional content. PM Modi highlighted that with climate
change, new types of pests and diseases will likely come; hence, the need to continuously conduct
intensive research to address these forthcoming issues.
▪ In December 2020, the Indian government met with farmers to discuss the 3 contentious bills
passed in the Indian parliament in September 2020. The new laws will allow farmers to directly sell
their produce outside government-controlled markets. Due to this free market set-up, farmers
worry that without the MSP, they will be taken advantage of by large businesses and corporations.
MSPs are essentially guarantees to farmers that, in any event, produce will be sold at a certain
price not lower than the MSP. While the government has reiterated that MSPs and government
procurement will not cease, farmers demand that the MSPs be guaranteed through explicit
inclusion in the bills.
▪ Unseasonal torrential rains and hailstorms have damaged the winter-planted crops of millions of
Indian growers in the northern part of the country, Reuters reported on March 16, 2020. The
damaged crops include wheat, potato, chickpea, and rapeseed Reuters added. Wheat, rapeseed,
and chickpeas are the main winter-planted crops in India. Indian farmers typically sow winter crops
in October, a month after the end of the June-September monsoon season, and harvesting starts
from March.
▪ The outbreak of the coronavirus in Asia in the early months of calendar 2020, hit government tax
collection in India, TRT World reported in March 2020. As a result, the Indian government has
decided to drop at least three crucial policy initiatives, including raising the supply of highly
subsidised rice and wheat to millions of economically disadvantaged people in the country. Before
the onset of the crisis, the Indian Food Processing Ministry had favoured raising the supply of
subsidised rice and wheat to 7 kg a month from 5 kg previously for most beneficiaries under what
is essentially the world’s largest food welfare programme. Raising the amount of subsidized wheat
extended to beneficiaries would have cost the government some INR 3bn. Faced with the prospect
of lower revenues in FY2020 and FY2021, the Indian finance ministry has asked other departments
to avoid any new proposals and also curb non-essential expenditures.
Source: Hindustan Times, Reuters, TRT World, BBC
42
298 303
285 285
275
154 155
137 145 144
138 140 142 144 148
FY2017 FY2018 FY2019 FY2020 FY2021 est.
Kharif Rabi Total
350
297.5 303.3
300 285.0 285.2
275.1 23.0 24.4
25.4 22.1
23.1
250 47.8 49.4
47.0 43.1
43.8
200
103.6 107.9 109.2
98.5 99.9
150
100
109.7 112.8 116.5 118.9 120.3

50
0
FY2017 FY2018 FY2019 FY2020 FY2021 est.
Rice Wheat Coarse Cereals Pulses Total
Source: Department of Agriculture and Cooperation
43
The horticulture subsector occupies a significant space in India’s agriculture sector and has become
one of the main drivers of growth of the sector. It has even surpassed grain production in terms of
productivity – with the former and latter producing 12.49 and 2.23 tonnes per ha, respectively. In
addition, horticulture accounts for 33% of India’s agriculture GDP despite occupying only 18% of total
cropped area. The increased productivity may be attributed to the fact that horticulture crops are
generally high-value crops with lower irrigation and input costs. India is the second largest producer
of fruits and vegetables in the world. The country is dominant as well in the production of crops such
as spices, coconut, and cashewnut. A major factor to this feat was the implementation of the National
Horticultural Mission in FY2006 which has improved both productivity and product variety of the
subsector.
India’s horticulture subsector will likely be driven by the growing health-conscious population who
seek nutritious yet relatively inexpensive food. This is complemented with the general increase in
domestic and global per capita income. The subsector is limited by the insufficiency of cold storage
and warehouse facilities in India. Investments, in terms of financial and human capital, are therefore
necessary for the subsector’s development. In a 2018 report on Doubling Farmers Income, it was
estimated that in FY2023, 451mn tonnes would be achieved in the horticulture subsector. This would
require a 2.8% increase in area and 3.1% increase in productivity. While the same report mentioned
that that it is achievable, further opportunities have to be tapped, such as innovation through
institutional support and importation of technologies.
The Mission for Integrated Development of Horticulture implemented from 2014 onwards is the Indian
government’s centrally sponsored scheme which aims to improve the state of the horticulture scene
in the country in aspects including production, harvest management, R&D, and capacity building
initiatives, among others. In Budget 2022, under this scheme, the allocation to horticulture was
enhanced to further promote the agenda. The enhanced allocation is also aimed at increasing the
export levels from 1% to 10% of total domestic production. In addition to these interventions from the
government, the outlook remains positive on account of increasing population and size of the Indian
economy. On top of this is the preference for healthy food alternatives such as fruits and vegetables
which are the subsector’s main produce.
Source: Ministry for Integrated Development of Horticulture, Firstpost
45
▪ In early 2022, Finance Minister Nirmala Sitharman announced that a rationalized and
comprehensive scheme to boost domestic production of oilseed will be implemented in response
to the findings of the Economic Survey for 2021-2022 which highlighted that demand for edible oil
will continue to grow due to rising population, evolving diet, and urbanization. It is to be noted
that more than half of domestic consumption is dependent on the imports of these edible oils.
▪ The government of India implemented a 21-day lockdown starting on the 25th of March 2020 as part
of the measures the contain COVID-19. To support its citizens from the economic loss arising from
the lockdown, the government announced an economic stimulus worth USD 22.5bn – approximately
15% of which was deployed to the agriculture sector. The said package includes various assistance
to the agriculture sector in the form of cash transfers, 3-month moratorium on agricultural term
and crop loans, and voluntary payments of insurance premiums under the PM Fasal Bima Yojana –
a government sponsored crop insurance scheme. For the horticulture subsector, in particular, the
government implemented the “TOP to Total” scheme wherein the Operation Greens, which used to
be a subsidy for tomatoes, onions, and potatoes only, was implemented to all types of fruits and
vegetables. The said scheme provides assistance mainly on the transportation and storage
facilities.
▪ The Haryana State Horticulture Development Agency approved 15 projects, including mushroom
cultivation, banana ripening chambers, cold storages, hi-tech nurseries, and integrated post
harvest management, amongst others. These projects will be funded with a government subsidy
worth a total INR 537mn under the federal government’s, Indian daily The Tribune reported on its
website in March 2020.
▪ India’s newest State of Telangana, carved out of the State of Andhra Pradesh in 2014, boasts
substantial potential for horticulture development according to representatives of the Dutch
embassy to India, portal Horti Daily reported in February 2020. The embassy is reported to have
offered to Telangana authorities agricultural technology at reduced prices and have held
discussions on a village-level cold chain model. According to Horti Daily, the Dutch embassy
believed the climate in Telangana State was suitable for typical Dutch crops such as flowers,
various vegetables, and tubers. The State government is also keen on seeking technical help from
the Netherlands in the field of village-level processing units for spices and fruit grown in the State.
Source: The Times Network, The Tribune, Horti Daily, Grant Thornton, Zee Business
46
Aromatic Loose Cut Flowers,
Fruit Vegetables Plantations Honey Spices Total
Crops Flowers mn units
FY2017 92,918 178,172 972 17,972 95 8,122 1,699 693 300,643
FY2018 97,055 179,692 1,195 17,874 105 8,369 1,760 769 306,819
FY2019 97,967 183,170 795 16,350 120 9,428 2,263 647 310,740
FY2020 102,080 188,284 734 16,116 120 10,137 2,323 676 320,470
FY2021 est. 103,027 197,230 779 16,602 125 10,679 2,266 339 331,047
Citrus 14% Tomato 11%

Brinjal 6%
Mango 20%
Papaya 6% Onion 14%
Cauliflower
5%
Guava 4%
Cabbage 5%
Grapes 3%
Watermelon Okra 3%
3%
Pomegra…
Peas 3%
Apple 2%
Potato 27%
Chillies 2%
Banana 32%
47
India is the second largest producer of sugar in the world next only to Brazil. It is, however, the
largest producer of centrifugal sugar in the world. Sugar production in India is largely concentrated in
the states of Uttar Pradesh, Maharashtra, and Karnataka which combines for more than 80% of the
total estimated sugar production for 2021-2022 marketing year. Sugar is a major product of India’s
agriculture sector as it positions itself as the second largest agro-based industry in India next to
cotton textile. It is also an essential product for consumption as it proves to be the cheapest source
of energy. The sugar industry is instrumental in helping rural development as it has supported roughly
50 million Indian farmers and their families by integrating these rural workers to commercial
production of sugar in order to sustain domestic and global demands for sugar and its by-products.
The production of sugar in India has outpaced consumption in recent years which has caused a sugar
glut in the second largest producer of sugar in the world. According to the Indian Sugar Mills
Association, Indians consume on average 19kg of sugar which is well below the world average. The
government has also incentivized the production of ethanol which is an alcohol-based fuel coming
from the fermentation of sugarcane juice. This has become an important shift in the industry in order
to address the excess production of sugar in the country. This ethanol will be blended with petrol and
will be used as fuel for vehicles. This is complemented with encouraging auto makers to manufacture
vehicles that are capable of running ethanol-based fuel.
Despite the issue on the supply-demand imbalance, the outlook for the sugar industry remains
positive. The industry is expected to grow by 6% to 7% due to projected export volumes and ethanol
production. Meanwhile, it is estimated that revenues of sugar companies will also grow by 5% to 7%
in FY2022 on account of favorable prices and the expected growth of sugar exports and ethanol. The
incentivizing of ethanol production seems to be welcomed as stock prices of sugar producing
companies rallied after being announced by the government.
Source: The Economic Times, BBC, Business Insider, Business Standard
48
India’s cotton industry is the backbone of the country’s textile sector, given that 60% of the raw
materials used in textiles is made up of cotton; while the textile industry contributes to around 5% of
India’s GDP and 11% of the country’s total export earnings. Globally, India has the largest cotton
acreage at approximately 12.6mn acres or 34% of world’s cotton acreage. In addition, India is the
world’s largest producer, consumer, and exporter of cotton. The cotton industry’s major export
destinations are Bangladesh and China, while other destinations include Vietnam, Pakistan,
Indonesia, Taiwan, and Thailand. International retail brands which harness the outputs of the cotton
industry include Carrefour, GAP, H&M, JC Penney, and Levi Strauss, among others.
Rising incomes are expected to contribute demand to textile industry which then translates to
additional demand for cotton given that cotton makes up a significant portion of textile raw
materials. Related to this is the stable growth of clothing retail, both in India and worldwide, which
also utilizes cotton products. On the production side, India’s competitive advantage will keep the
cotton and textile industry as one of the leaders globally. Meanwhile, the cotton industry is
vulnerable to varying weather conditions. For instance, in 2020, farmers worried that the extended
monsoon in October might affect the quality of cotton. This may translate to price negotiations in the
international markets which may negatively affect cotton prices due to compromised quality.
In FY2022, cotton consumption in India is forecasted at 25.5mn bales while exports are forecasted to
reach 5.8mn. These favorable results are expected owing to the robust recovery of the industry
following the moderation of the pandemic and the recovery of the economy which drives up both
domestic and export demand. By 2030, it is expected that cotton production value in India will reach
USD 7.2mn tonnes owing to the consistently increasing demand from consumers. This long-term
projection is supported by the new textile policy of India which aims to focus more on boosting
domestic industry. A component of this new policy is the creation of seven mega textile hubs which
will be set up across the country and will support end-to-end production – from raw material up to
finished goods.
Source: Ministry of Textiles, ClearTax Chronicles, Business Standard, IBEF, Hindustan Times
49
Chillies 20%
405 Turmeric
398
380 371 10%
306 Coriander
8%
Ginger 18%
Cumin 8%
Fenugre…
Tamarind 1%
Fennel 1%
FY2017 FY2018 FY2019 FY2020 FY2021 est Pepper 1%
Others 1%
Garlic 30%
Sugarcane Production
36.54
36.07
37.12
35.49
32.81
32.58
17,973.0 17,874.0 32.58 32.81

16,602.0
28.04
16,350.0 16,117.0 30.01

28.04
16,486.0 16,228.0 14,572.0

14,682.0 14,006.0
10.96
10.03
9.88
9.82
9.78
10.52 10.96 10.03 9.82 9.91 9.66

19.0 20.0 24.0 26.0 27.0
745.0 817.0 743.0 703.0 738.0
723.0 809.0 901.0 1,382.0 1,265.0
FY2017 FY2018 FY2019 FY2020 FY2021 est FY2017
FY2016 FY2018 FY2018
FY2017 FY2019
FY2019 FY2020 FY2021 est.
FY2020 est.FY2021 est.
Arecanut Cashewnut Cocoa Cotton Jute & Mesta

Coconut Total Cotton Jute & Mesta
50
In terms of coffee production and exportation, India ranks sixth and fifth, respectively, worldwide
while it ranks third in Asia in both aspects. The country’s coffee production accounts for roughly 5% of
global coffee production. Of the total coffee production in India, 30% is consumed in the domestic
market while the remaining 70% is exported mainly to European countries such as Italy, Germany, and
Belgium. In FY2021, coffee production of both Arabica and Robusta variants increased by 12% y/y – this
was after the 7% in FY2020 which was likely due to the impact of the pandemic during the latter part
of the fiscal year. Coffee production in India provides employment to roughly 2.5mn farmers – most of
whom are in the southern and northeastern regions of the country due to the favorable climate there.
India is the second largest producer of tea in the world, next to China, and is the fourth largest in
terms of export, next to Kenya, China, and Sri Lanka. In terms of consumption, India is the largest
consumer of tea worldwide with 75% of production consumed locally and the rest being exported to
countries including Russia, the UK, and Iran. Tea production in India includes varieties such as CTC
tea, orthodox tea, green tea, and organic tea. It also produces high-quality tea such as Darjeeling,
Assam Orthodox, and Nilgiris. In FY2021, tea production declined by 6% y/y as export demand dropped
and the importation of cheaper tea variants hurt local producers.
1,361
1,350 1,325 1,350
334 1,250
312 316 320 1,233
298 1,325
235 1,283
217 221 225
211
1,250
95 95 95 87 99
0
FY2016 FY2017 FY2018 FY2019

FY2017 FY2018 FY2019 FY2020 FY2021 FY2017 FY2018 FY2019 FY2020 FY2021
Arabica Robusta Total Tea Production, mn kg
Source: Coffee Board India, Tea Board India, IBEF, The Hindi Business Line
51
Rapeseed
Groundnut Castorseed Sesamum Nigerseed Linseed Safflower Sunflower Soyabean Total
and Mustard
FY2016 6.70 1.80 0.90 0.07 6.80 0.05 0.13 0.30 8.57 25.32
FY2017 7.50 1.40 0.70 0.09 7.90 0.09 0.18 0.25 13.16 31.27
FY2018 9.20 1.60 0.80 0.07 8.43 0.05 0.17 0.22 10.98 31.52
FY2019 6.73 1.20 0.70 0.05 9.25 0.02 0.10 0.22 13.26 31.52
FY2020 9.95 1.84 0.66 0.04 9.12 0.04 0.12 0.21 11.23 33.22
FY2021 est. 10.15 1.78 0.81 0.04 10.43 0.03 0.14 0.22 13.71 37.31
India is one of the largest producers of oilseed in

37.3 the world with seven edible oilseed crops and two
33.2
non-edible varieties. While production has
31.3 31.5 31.5 12.3 increased in the recent years, it has not kept up
9.8 10.5 10.8
11.0 with strong domestic consumption. Next to China,
India is the second largest edible oil consumer.
The issue on insufficiency has been attributed to
poor infrastructure and the lack of a
22.2
25.0 comprehensive strategy for oilseed production.
21.5 21.0 20.7
This has made the country import roughly 70% of
its domestic demand from other major oilseed-
producing countries. In FY2021, oilseed production
FY2017 FY2018 FY2019 FY2020 FY2021 est. increased by 12% y/y on account of higher acreage
and yields which were better than originally
Kharif Rabi Total
projected.
Source: Department of Agriculture and Cooperation, World Grain, The Hindi Business Line, USDA
52
Livestock, poultry, and dairying activities have been an integral component of India’s agriculture
sector owing to the country’s conducive climate and topography. These activities have provided the
much needed employment to the rural sector and to the small and marginal farmers; on top of also
providing the country with affordable and nutritious food. These activities have likewise brought India
to prominence as the country has been the recognized as one of the leading contributors of many
produce such as milk, buffalo meat, goat meat, and poultry products. These have been made possible
due to India’s vast resources across the country. In the latest census, India approximately has
536.76mn of combined livestock animals including sheep, goat, and pigs. Meanwhile, there are
303.76mn bovines and 851.81mn poultry animals. In FY2020, meat and milk production both increased
by approximately 6% y/y while egg production increased at a higher rate of 10% y/y.
The rapid urbanization of India has the effect of increasing demand for poultry and meat products as
the urban population accounts for 80% of the demand. Meanwhile, milk and other dairy products will
continue to benefit from the large vegetarian population who has milk as the only source of animal
protein and on the availability of new channels through which these products may be accessed such
as e-commerce. However, this poses an issue on the supply side as improvement in productivity has
been one of the major challenges of these markets in India. For instance, the average annual milk
yield of an Indian cattle is 1,172kg – a rate substantially lower by 50% in terms of world average. This
is further complicated by outbreaks of diseases such as influenza and foot and mouth disease which
usually interrupt program implementation and negatively affect health of animals. Anti-beef sector
regulations arising from the Hindu beliefs and as emphasized especially with the re-election of PM
Modi in 2019 remains an issue.
InvestIndia forecasts that the Indian meat market will grow to USD 4.9bn in 2024 mainly owing to the
sustained increasing demand for meat products. In terms of production and consumption, poultry
products are forecasted to remain ahead of beef given the sensitivity of the beef production and
consumption in India. For milk, demand is forecasted to remain stable and growing. For instance, per
capita milk consumption is currently 394g per person per day while world average is only at 229g per
person per day. While the outlook for livestock and poultry is positive, productive investments both
from the private sector and the government will play a critical role in ensuring that growth is
sustained in the future.
Source: Department of Animal Husbandry & Dairying, Invest India, The Hindu Business Line
54
▪ In January 2022, the government of Assam and the National Dairy Development Board entered into
an agreement to create a joint venture for the development of dairy production in the state. This is
expected to benefit 175,000 farmers and will involve more than 4,100 dairy cooperative societies.
Milk producers will also be provided subsidies to cover market price fluctuations.
▪ In November 2021, the Indian government launched a 3-month nationwide campaign to provide
Kisan Credit Card to 20 million eligible animal husbandry, dairy and fishery farmers from November
2021 to February 2022. It was virtually launched by Union Minister of Fisheries, Animal Husbandry &
Dairying Parshottam Rupala as the “Nationwide AHDF KCC Campaign”. This campaign is in
recognition of the sector’s contribution to the Indian economy and the fact that many farmers and
fishermen had to resort to non-institutional sources of credit which often offer very high interest
rates.
▪ In early 2020, India’s poultry sales plunged as a result of rumors in social media linking COVID-19 to
chicken. A leading animal feed company cited that weekly sales went down by at least 47% and
prices decreased by almost 60% or from USD 0.49 to USD 0.42 per chicken. As a result, farmers cut
back their production and culled parent birds. The drop in sales and prices happened despite the
efforts to educate the public on the falsity of the rumors. By the end of April 2020, poultry industry
losses were estimated at INR27,000 crore. Since May 2020, there has already been a revival in the
prices of chicken.
▪ The southern state of Karnataka has recently passed a controversial law named the Karnataka
Prevention of Slaughter and Preservation of Catle Bill 2020. The law bans the slaughtering of cow
and provides a punishment of from 3 to 7 years and a million rupee fine for violators. In particular,
the new law banned the slaughter of cows, calves, bulls, bullocks, and buffaloes younger than 13
years with some exceptions. The opposition cited that the new law discriminates the minority – the
Christians and Muslims who are beef-eating communities – and that the enactment was done
without proper consultations to the involved stakeholders. The state of Karnataka joins other
Bharatiya Janata Party-ruled states such as Gujarat and Uttar Pradesh in implement stringent laws
against cow slaughter and beef.
Source: Financial Express, Business Standard, Bloomberg, Times of India, UCA News
55
8600.00
8114.46
7318.89 7589.19
7020.14
4343
4061.79
3463.65 3766.94
3263.81
404.46 414.52
387.55 468.8 395.97
1,097.9 1,179.9
942.9 1,041.1 1,042.9
485.5 556.4 602.8 678.0 768.8
1,611.0 1,451.0 1,430.4 1,545.8 1,585.0

329.3 337.9 350.2 326.5 308.7
FY2016 FY2017 FY2018 FY2019 FY2020
Cattle Buffalo Sheep Goat Pig Poultry Total Meat
198,400.00
187,749.46
176,060.75 5,852.8
165,117.57 6,098.7
155,481.98 6,165.5
5,752.4
5,377.6
95,906.6
91,817.1
86,261.7
81,266.3
76,459.0
38,574.5 39,779.2
34,320.3 36,482.1
31,714.2
43,778.6 47,151.4 51,259.1 56,861.4

41,931.2
FY2016 FY2017 FY2018 FY2019 FY2020
Crossed Cows Non-Descript Cows Buffaloes Goat Total Milk Production
Source: Department of Animal Husbandry & Dairying
56
114,380
103,800
95,220
88,137
82,928
FY2016 FY2017 FY2018 FY2019 FY2020
Egg Production, mn units
406
390
370
351
333
79 86
65 68 73
FY2016 FY2017 FY2018 FY2019 FY2020
Milk, g/day Eggs, units/year
Source: Department of Animal Husbandry & Dairying
57
The Indian fisheries subsector provides livelihood to more than 28mn people in the country. The
proliferation of fisheries in India is partially attributed to its rich and diverse fishery resources which
include deep seas, lakes, ponds, and a biodiversity which comprises more than 10% of global
biodiversity in terms of fish and shellfish species. Globally, this has made India as the second largest
producer of fish in the world after China and the third largest shrimp producer. Inland fish comprise
70% of the annual production while the remaining 30% is made up of marine fish. From FY2015 to
FY2020, combined inland and marine fish production increased at a CAGR of 7%. The US, Southeast
Asia, the EU, and China are India’s major export destinations of fish and shrimp products. In FY2021,
exports of fish and aquaculture products dropped by almost 12% to USD 5.9bn due the pandemic and
the lower demand from its primary markets.
Sustainable fishing and the related overfishing have been the issues of the fisheries sector not only
in India but also by the rest of the world. On top of these are the environmental issues such as marine
pollution in the form of plastic wastes and oil spills which significantly affect marine resources.
Fishing and aquaculture activities have also lagged in terms of productivity due to insufficient
mechanisation and lack of technology especially for small-scale activities. Meanwhile, the
government remains committed with its support to the subsector. One of the major initiatives taken
was the Centrally Sponsored Scheme “Blue Revolution” which provides financial assistance to state
governments in order to support fishermen on various needs. This has resulted to improved
productivity and post-harvest infrastructure. In FY 2019, the Fisheries and Aquaculture Infrastructure
Development Fund was also introduced to further augment financial assistance to fishermen
especially on the infrastructural requirements.
The Omicron surge is likely to cause seafood exports not to hit the USD 7.8bn target for FY2022 as the
demand in key export destinations of UK and rest of Europe were down in early 2022. In the medium
term, the creation of the Department of Fisheries in February 2019 signifies a positive outlook for the
fisheries subsector in India. Together with this was the creation of an umbrella scheme for the
subsector called the “Blue Revolution” which has the aim of increasing fish production and
productivity. Meanwhile, while India continues to be one of the largest shrimp producers in the world,
it is expected that countries such as Ecuador, Vietnam, Indonesia, and China will grow strongly in the
future and will give more competition to the country.
Source: Invest India, Seafood Source, The Hindu Business Line, The Fish Site
59
▪ In November 2021, a multi-purpose special economic zone for seaweed park was launced in Tamil
Nadu to promote seaweed cultivation in India. This was originally proposed under Budget 2021 by
Finance Minister Nirmala Sitharman who views seaweed farming as an emerging business which
can provide employment and additional income to the coastal communities in Tamil Nadu. In
addition, the agar industry will also benefit from this seaweed park by taking the industry to a
larger scale and setting it up for export potentials.
▪ In August 2021, cage fish farming was launched in the major reservoirs of Kerala. Seed stocking was
done in three of the four major reservoirs after being permitted to launch a cage fish culture. This
development was welcomed against the context of dwindling catch in the state. It will also help
augment income for many families in the state.
▪ In March 2020, the government of India announced a lockdown which severely affected the
fisheries subsector. As a result of the lockdown, fishermen were left with nothing as they
witnessed the used-to-be-busy ports without traders, transportation facilities, and markets. Most
fishermen were forced to throw their most recent catch with others being forced to sell at 25% of
the original price. In mid-April, the fisheries subsector was allowed to operate; however, it was too
late for many as fishermen, most of whom were migrants, have already left for their home and
were either unable to return to work due to transportation lockdown or were not willing to risk
contracting the virus while at work. The India’s Central Institute of Fisheries Technology in Kerala
estimated that the lockdown has costed the subsector a monthly loss of USD896mn.
▪ In March 2020, India reported annual post-harvest losses of INR 610bn for marine and inland
fisheries production, Times of India (TOI) reported on its website. The Indian parliament attributed
this loss to faulty handling practices, delays in packing and transportation, and lack of proper cold
storage facilities. As a result, the parliament called on the government to modernize existing
harbours, establish more cold storage facilities, and ensure the availability of more refrigerated
trucks and vans for fish transportation, TOI added. As of FY2018, more than 240,000 fishing crafts
operated along the Indian coast, and India also boasted seven major fishing harbours, 75 minor
fishing harbours and 1,537 landing centres.
Source: The Industry Outlook, New Indian Express, The Hindu, Quartz India, Times of India, Hakai Magazine
60
Tamil Nadu 5% Uttar Pradesh 5%
Bihar 5%
Kerala 5%
Karnataka 5%
Gujarat 6%
Maharashtra 4%
Odisha 6%
Others 18%
West Bengal 13%
Andhra Pradesh 29%
52,171
14,164.0 48,197
13,573.0
12,704.0
11,431.0 39,349
10,762.0 35,435 35,744
9,720.0 10,437.0
8,948.0
7,162.0 7,806.0
3,600.0 3,625.0 3,756.0 3,853.0 3,727.0
FY2016 FY2017 FY2018 FY2019 FY2020 FY2016 FY2017 FY2018 FY2019 FY2020
Marine Fish Inland Fish Total Seed Fish Production
Source: Department of Fisheries
61
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EMIS Insights - India Agribusiness Sector Report 2022-2023

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EMIS Insights - India Agribusiness Sector Report 2022-2023

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Total Population, mn, year-end 1,299 1,314 1,327 1,341 1,355

GDP, current prices, INR bn 153,917 170,900 188,870 203,510 197,457

GDP, y/y change, % 8.26% 6.80% 6.53% 4.04% -7.25%

GDP per Capita, USD 1,768 2,018 2,037 2,111 1,968

GVA at Current Price, INR bn 139,652 155,057 171,612 184,613 179,152

GVA Agriculture, Forestry, and Fishing,

Consumer Price Index (FY2012=100), year

Wholesale Price Index (FY2012=100), y/y

Official Exchange Rate, INR/USD, year-

Monetary Policy Rate: Repo Rate, %, year

Total Exports, USD bn 275.85 303.53 330.08 313.33 291.62

Total Imports, USD bn 384.36 464.71 514.05 474.71 392.01

Total Agriculture Exports, USD bn 29.13 33.25 32.60 30.73 35.57

Total Agriculture Imports, USD bn 22.71 21.74 17.80 18.09 19.66

Total FDI Inflow, USD mn 43,477 44,857 44,366 49,977 49,977

FDI in Agricultural Machinery, USD mn 15.19 17.2 5.78 102.32 142.58

FDI in Agricultural Services, USD mn 76.43 110.19 88.07 45.72 124.26

Source: RBI, CSO, Ministry of Commerce and Industry, DPIIT, CEIC

Rice Production, mn tonnes 109.7 112.9 115.6 118.9 120.3

Wheat Production, mn tonnes 98.5 99.7 99.1 107.9 109.2

Production of Coarse Cereals, mn tonnes 43.8 47.0 42.6 47.8 49.4

Production of Pulses, mn tonnes 23.1 25.2 24.0 23.0 24.4

Total Foodgrain Production, mn tonnes 275.1 284.8 281.4 297.5 303.3

Total Oilseed Production, mn tonnes 31.3 31.3 31.5 297.5 303.3

Production of Fruit, thou tonnes 92,918.0 97,054.8 97,967.0 102,080.0 103,027.0

Production of Vegetables, thou tonnes 178,172.0 179,691.8 183,170.0 188,284.0 197,230.0

Production of Spices, thou tonnes 8,122.0 8,369.0 9,428.0 10,137.0 10,679.0

Tea Production, mn kg 1,250.5 1,325.1 1,350.0 1,360.8 1,283.0

Coffee Production, thou tones 312.0 316.0 319.5 298.0 334.0

Egg Production, mn units* 88,137.0 95,220.0 103,800.0 114,380.0 n/a

Seed Fish Production, mn fry 35,435.0 35,743.9 48,197.4 52,170.6 n/a

allied sectors. In addition, the growth observed 5,000 17%

FY2017 18.0% 2.3% 16.7% 2.5% 7.7% 18.2% 20.8% 13.6%

FY2018 18.3% 2.2% 16.6% 2.7% 7.7% 18.6% 20.2% 13.8%

FY2019 17.6% 2.2% 16.3% 2.6% 7.9% 18.6% 20.6% 14.1%

FY2020 18.4% 1.9% 14.7% 2.6% 7.4% 18.9% 21.2% 14.9%

FY2021 20.2% 1.6% 14.4% 2.7% 7.2% 16.4% 22.1% 15.4%

China EU India Russia US Brazil India EU China Thailand

103,276 6,400 6,100

EU-28 US India Russia China

Source: USDA, FAO

Share of Priority Sector Lending Share of Total Bank Credit

Source: RBI, CEIC, Economic Times, Financial Express

Live Animals 78.8 63.9 42.9 33.6 8.5

Fish and Crustaceans 5,501.1 6,850.9 6,256.9 6,159.2 5,235.4

Products of Animal Origin 79.8 121.5 132.1 93.7 96.7

Edible Vegetables 1,294.7 1,305.6 1,301.7 1,095.6 1,304.5

Cocoa and Cocoa Preparations 162.2 177.5 192.7 180.1 149.8

Sugars and Sugar Confectionery 1,508.5 1,018.7 1,629.2 2,192.1 3,149.7

Vegetable Plaiting Materials 67.8 53.3 54.2 47.4 44.2

Lac, Gums, Resins etc 844.4 1,019.0 1,056.9 822.9 727.3

Milling Industry Products 218.0 247.4 321.3 334.7 434.5

Cereals 6,013.0 8,151.6 8,160.2 6,672.4 10,103.5

Source: Ministry of Commerce and Industry, CEIC

Live Animals 9.2 8.8 9.0 12.2 10.4

Fish and Crustaceans 58.9 90.5 106.3 129.3 151.6

Products of Animal Origin 40.2 48.4 44.5 35.7 29.7

Edible Vegetables 4,287.4 2,968.8 1,189.1 1,576.2 1,683.8

Cocoa and Cocoa Preparations 229.7 228.5 263.2 259.0 273.1

Sugars and Sugar Confectionery 1,103.6 1,050.3 543.9 454.1 750.8

Vegetable Plaiting Materials 37.6 36.8 50.2 80.6 107.6

Lac, Gums, Resins etc 218.7 246.2 254.3 276.8 255.3