UNIT-1

Agribusiness Management
 Learning Outcome

• Students will learn about the various

stakeholders and components of
agribusiness systems, importance of
agribusiness in the Indian economy
 Introduction
• Agribusiness is one of the most challenging
business today.
• The term agribusiness was coined first in
1957 by two Harvard Business School
professors, John Davis and Ray Goldberg.
• Agribusiness is not just a business rather it is
an useful tool for ensuring food security
throughout the world and all sorts of basic
needs
 Challenges
• COVID-19 pandemic
• A growing Population
• Climate Changes and Natural Disaster
• War and political unrest
• Agribusiness refers to any business related to farming
and farming-related commercial activities.

• It is the sum total of all operations involved on the

manufacture and distribution production activities on
the farm and the storage, processing, and distribution
of farm commodities from them.

• Agribusiness involves all the steps required to send an

agricultural good to market, namely production,
processing, and distribution
• Examples of agribusiness include farm machinery
manufacturing, seed supply, agrichemicals, food
processing, etc.

• In common usage, the term "agribusiness" usually

refers to large agricultural companies in comparison
with small, independent farms.
Examples of agribusiness activities include
•Research and development of new agricultural resources
and methods

•Ownership or management of agricultural production

facilities such as farmlands and livestock facilities

•Manufacture or distribution of agricultural supplies and

equipment such as machinery, feed, and fertilizers

•Processing or distribution of agricultural products

• Agribusiness is a broad concept used to describe corporate
agricultural enterprises individually and collectively.

• Agribusinesses are companies involved in one or more stages of

the production of crops and livestock.

• Read more:
https://www.referenceforbusiness.com/encyclopedia/A-Ar/Agri
business.html#ixzz73mBFQBPn
• Providing food or fibers is the ultimate product of all
agribusiness operations.

• As such, the economic impact of agribusiness is significant;

agribusiness is almost two times as large as the sum of all
manufacturing enterprises (measured in total assets);

• It represents 40 percent of all consumer spending

• It employs 37 percent of the labor force.
• Business firms that serve agriculture rely on
farmers for their markets and for some of their
supplies.

• By the same token, farms could not operate

without businesses that manufacture farm
supplies and those that store, process, and
merchandise farm commodities.
 Top Agri-Business companies in India

• https://business.mapsofindia.com/india-com
pany/top-10-agricultural-companies.html

World scenario

• https://www.tharawat-magazine.com/facts/t
op-ten-agribusiness-companies/
Transformation of agriculture
into agribusiness
 Indian Economy Strategy
• https://www.dfat.gov.au/geo/india/ies/cha
pter-5.html

• https://www.yourarticlelibrary.com/agricult
ure/six-main-strategies-to-improve-the-agri
culture-productivity-in-india/40230
 Scope of Agri-Business in India
• India is endowed with varied agro-climate, which facilitates production of
temperate, sub-tropical and tropical agricultural commodities.

• There is growing demand for agricultural inputs like feed and fodder,
inorganic fertilizers, bio-fertilizers.

• Biotechnology applications in agriculture have vast scope in production

of seed, bio-control agents, industrial harnessing of microbes for bakery
products.

• Export can be harnessed as a source of economic growth. As a signatory

of World Trade Organization, India has vast potential to improve it
present position in the World trade of agricultural commodities both raw
and processed form.
Temper ate fruit plants are specific in the climatic r equirement. They can
tolerate both diurnal and seasonal wide fluctuation of temperature and are. grown
only in place where winter is distinctly cold.

Seasonal: Caused by length of daylight

Diurnal: Around noon is when the earth's surface receives the most intense solar
rays

Tr opical crops are the plants grown in tropical climate. These latitudes are
called the Tropic of cancer and Tropic of Capricorn. Tropical climate are
generally warm to hot year-round.
Example:- tea, coffee ,cocoa .

Sub Tr opical crops refers to plant that generally grown in areas with Subtropical
climate. Subtropical climates have often warm to hot summer and cool to mild
winter. Plants and trees grow in placesthat are warm and wet.
Example:- banana, mangoes, lychee
Which of the following is primarily a crop of temperate
zone?

A.W heat
B. Cotton
C. Sugar cane
D. Coffee
Ans: A
Apart from wheat, which is primarily a crop of temperate
zone, all the other - cotton, sugarcane and coffee are
tropical crops.
It is a tropical as well as a subtropical crop. It grows well in hot and humid
climates with a temperature of 21° C to 27° C and annual rainfall between
75cm and 100cm. After Brazil, India is the second-largest producer of this
crop which has multiple applications in various industries.
Which of the following crops has been described in the above information?

A. Tea
B. Coffee
C. Rubber
D. Sugarcane
Ans: D
•Sugarcane is a tropical as well as a subtropical crop. It grows well in hot and
humid climates with a temperature of 21° C to 27° C and annual rainfall
between 75cm and 100cm.
•India is the second-largest producer of sugarcane only after Brazil with a
production of 354 million tonnes. It is the main source of sugar, gur
(jaggery),Sugae , and molasses.
•The major sugarcane-producing states are Uttar Pradesh, Maharashtra,
Karnataka, Tamil Nadu, Andhra Pradesh, Telangana, Bihar, Punjab, and
Haryana.
 Scope of Agri-Business in India
• Opportunities for secondary and tertiary processing of agricultural
commodities.

• The vast coastal line and internal water courses provides enormous
opportunity for production of marine and inland fish and ornamental fish
culture gaining popularity with increase in aesthetic (Nature of beauty)
value among the citizens of India.

• The livestock wealth gives enormous scope for production of meat, milk
and milk products, poultry products etc . The forest resources can be
utilized for production of by products of forestry.

• Mushroom production for domestic consumption and export can be

enhanced with improvement in the state of art of their production.
Sector Primary Secondary Tertiary

Service The primary sector The secondary sector The tertiary sector
includes the basic includes industries that includes industries that
industries for use basic materials to supply the materials
providing basic form new and improved made by the secondary
materials to other materials. industries to the
industries. consumers.
Methods Traditional methods, Modern methods, An Modern methods and
Used No specific organized organized way of algorithms. Organized
procedure was working. and sophisticated
followed. logistic tools are used
for the processes.
Types of
Industry
Sector Primary Secondary Tertiary

Also Agriculture sector or Manufacturing sector Service Sector

Referred allied services sector
as

Employer The largest employer A moderate number of The employment rates

Rate rates are found in this employer rates found in are increasing.
sector this sector
The cultivation of cotton is example of –
•(a) Secondary sector
•(b) Primary sector
•(c) Tertiary sector
•(d) None of these
Ans: B Primary Sector
Identify the example of primary sector –
•(a) Forestry
•(b) Communication
•(c) Make sugar
Ans: A Forestry
Which sector is also called agriculture &
related sector?
•(a) Secondary sector
•(b) Primary sector
•(c) Tertiary sector
•(d) None of these
Ans: B Primary Sector
In secondary Sector
•(a) Natural resources used directly
•(b) Natural resources change into other form
•(c) Both a & b
•(d) None of these
• Ans: (b) Natural resources change into
other form.
— is an example of tertiary sector.
•(a) Make gur
•(b) Transport
•(c) Cotton fire
•(d) All of these
• Ans: (b) Transport
In which of the following sector services is
generated?
•(a) Primary
•(b) Secondary
•(c) Tertiary
•(d) None of these
• Ans: C Tertiary
 Scope of Agri-Business in India
• Organic farming has highest potential in India as the pesticide and
inorganic fertilizer application are less in India compared to industrial
nations of the world. The farmers can be encouraged and educated to
switch over for organic farming.

• There is wide scope for production and promotion of bio-pesticides and

bio-control agents for protection of crops.

• Seeds, hybrid and genetically modified crops, have the highest potential
in India in the future, since the productivity of high yielding varieties
have reached a plateau.
 Scope of Agri-Business in India
• Micro-irrigation systems and labor saving farm equipments have good
potential for the years to come due to declining groundwater level and
labor scarcity for agricultural operations like weeding, transplanting and
harvesting.

• Production of vegetablesand flowers under green house conditions can be

taken up to harnessthe export market.

• The enhanced agricultural production throws open opportunities for

employment in marketing, transport, cold storage and warehousing
facilities, credit, insurance and logistic support services.
Various stakeholders and components of
agribusiness systems
• Stakeholders are the individuals or group with an interest in an
organization.

• Agricultural marketing in India involves two major stakeholders;

1. on one end, it’s the farmers

2. on another, the consumers (Consumers may include end consumer,

processor, retailer and somehow the exporter)

Intermediaries and the other entities in the chain enable movement of goods
and carry out other supportive activities.
Various stakeholders and components of
agribusiness systems
• Far mer s in the existing chain mainly suffer issues like a minor lot of
individual nature for sale, poor knowledge of market requirements and
mainly the inadequate ability of post-harvesting infrastructure along
with financing issues. It finally leads to a low realization which makes
farmers’ suffer a lot.

• This normally results in low prices to farmers.

• Aggregation (group) of small lots by farmers can lead to larger lots and
their collective bargaining power may fetch those better prices in the
market.
Various stakeholders and components of
agribusiness systems
• Consumer s: Entire consumer class faces an uncertain supply, uncertain quality
and logistical issue when dealing directly with the farmers that are small
growers but may be large in numbers. It may lead to high cost of purchase due
to intermediaries and inefficient logistic infrastructure.
• It would do well for the buyers or consumers to work more closely with the
farmers, so that the farmers may get the right prices and buyers may get the
right quality of products.
• Nation like India has millions of small and marginal farmers, which makes it a
daunting task for the buyers.
Various stakeholders and components of
agribusiness systems
• This is the main reason of buyers remain dependent on middlemen. They add
more cost and add a little value which ultimately raises the price. We need
intervention that can help in aggregating farmers and their produce, establishing
a direct mode of physical and information exchange between buyers and
farmers.
• Interventions can be broadly classified into institutional and infrastructural.
• Farmers’ producer organisations (FPO’s): These farmer groups can collectively
handle credit issues, post-harvest management issues etc. They can also attract
institutional buyers in bulk purchases. This certainly tackles the infrastructural
issue as well, because such FPO’s can deal with multiple logistic issues along
with general issues
Components of Agr ibusiness Systems
• To increase their efficiency, businesses within the agriculture industry
implement strategies such as ver tical integr ation and the usage of value
chains. Agribusiness includes all economic activities related to the food
production process, including:
• Farm equipment manufacturing
• Pesticide and fertilizer supply
• Agricultural research and development
• Seed supply
• Crop and food storage
• Farm production and processing
• Agricultural financing
• Food delivery and marketing
Components of Agr ibusiness Systems
• Ver tical integr ation: It is a corporate approach to take charge of its value chain
or supply chain functions. V ertical-integration is an expansion strategy where
businesses acquire additional levels of the supply chain. The acquisition could
be raw materials, production, distribution, retail, etc. Companies adopt a
vertical-integration strategy to win over their competitors by strengthening their
supply chain.
Components of Agr ibusiness Systems
• Value chain (VC) refers to the sequence of activities and processes a business
undertakes to add value to its product or service at every stage from its
inception to delivery. It helps to understand and improve business activities that
create value.
• The supply chain begins with the procurement of raw materials and the
production of finished goods. Then, it extends all the way to distribution and
sale. This system comprises suppliers, producers, distributors, vendors, retailers,
and consumers.
 Components of Agr ibusiness Companies
1. Far m equipment manufactur ing: These businesses develop the farming tools
and machinery used during the agricultural process, such as tractors. The
manufacturing and development of farm equipment and machinery is essential for
farmers to harvest their crops and complete various tasks around the farm.
•An example of a farm equipment manufacturer is Deere and Company (John
Deere), the lar gest far m machiner y manufactur er by revenue in 2020.

2. Pesticide and Fer tilizer Supplier s: For the crops to grow strong and healthy,
farmers use pesticides and fertilizer to promote flourishing crops. Without them,
crops become susceptible to disease and pests that can destroy the harvest.
Components of Agr ibusiness Systems 0r
Types of Agr ibusiness Companies
• An example of a company that supplies pesticides and fertilizer is Syngenta, one
of the world’s largest agrichemical companies.
3. R esear ch and Development (R& D): is a vital part of the agricultural industry as
new threats (droughts, depleted soil) emerge every day and bring about the
possibility of a diminished harvest. These businesses explore new opportunities
and innovations to help combat any threats.
• Syngenta, the agrichemical company, is primarily involved in research and
development.
Components of Agr ibusiness Systems 0r
Types of Agr ibusiness Companies
4. Seed Supplier s: Without seeds, farmers have little to work with to produce crops.
Companies provide farmers necessary seeds to meet the demands of consumers.
Four companies now own over 60 per cent of the seed market – Bayer, B ASF,
Corteva, and ChemChina. Many of these companies are involved in more than one
agribusiness aspect, such as the case with Syngenta.
I mpor tance of Agricultur e in I ndian
Economy
• The Indian Economy is an Agro-Economy; the difficulty with such
an agro-economy is that the agriculture sector is highly dependent
on the cycle of production, distribution, and consumption. Another
problem with the Agro-economy is productivity.

• Currently, Indian Farmers produce 2.4 tonnes of rice per hectare of

land, far behind its actual potential. On the other hand, China and
Brazil produce 4.7 and 3.6 tonnes of rice per hectare. Despite so
many disadvantages of the agriculture sector, it is still the most
crucial sector for the Indian Economy.
I mpor tance of Agricultur e in I ndian
Economy
• Almost half of the population of India indulged in agriculture. The
agriculture sector holds an important place in the economy. A few
of the important points are:

• Agriculture provides employment opportunities to rural

agricultural and non-agricultural labourers.

• It plays a significant role in international trade and import and

export activities.
R ole of Agriculture in I ndian Economy
• Contr ibution in GDP: Since the time of Independence, the agriculture sector
has been the major contributor to the country’s GDP. Agriculture and allied
sector share 20.19% . In GDP.
• L ar gest Employee Sector : In India, the agriculture sector has more than half of
the total population of the country engaged, which makes it the sector with the
most number of employees in the country. Comparing it with the developed
nations, India has about 54.6% of the total population in the agriculture sector
engaged.
R ole of Agriculture in I ndian Economy
• Sour ce of Food: India is the second-most populous country in the world. And to
feed such a huge population, there is always a constant need for a supply of food.
Therefore, there is a need for agriculture and a need for less dependency on the
agriculture sector for the Economy.
• Relation between Agr icultur al and I ndustr ial sector: For the continuous
manufacturing of products, there is a constant need for raw materials, and to
fulfil this need, most of the industries in the country collect this raw material
directly from the agricultural fields.
• In India, around half of the income generated in the industrial sector comes from
agricultural-based industries. Therefore, in India, the industrial sector is highly
dependent on the agricultural sector.
R ole of Agriculture in I ndian Economy
• Commer cial Significance: Indian Agriculture is important for the industrial
sector and trading purposes both internally and externally. Agro-products such
as tea, coffee, sugar, cashew nuts, spices, etc., which are edible and textile
products such as jute, cotton, and others contribute 50% and 20% respectively to
the total export of the total country. These add up to around 70% of the country’s
total export and help the country in earning foreign exchange.
• 6.Contr ibution to the Gover nment’s Revenue: Agriculture is the most
significant source of income for the central and state governments Also, the
movement of agricultural goods helps generate revenue for the Indian railways,
which helps the government in revenue generation.
R ole of Agriculture in I ndian Economy
• Economic Planning and Agr icultur e: India’s planning prospects are also
heavily reliant on the agriculture sector. A good harvest always offers
momentum to the country’s proj ected economic growth by improving the
business climate for the transportation system, manufacturing sectors, internal
commerce, and so on.
• A successful harvest also means that the government will have enough money to
cover its budgeted expenditures. Similarly, a bad harvest causes a total
depression in the country’s bu siness, which eventually leads to a collapse of
economic planning.
National Policy on Agriculture

The National Policy on Agr icultur e seeks to actualize:

• The vast untapped growth potential of Indian agriculture.
• Strengthen rural infrastructure to support faster agricultural development.
• Promote value addition, accelerate the growth of agro business.
• Create employment in rural areas.
• Secure a fair standard of living for the farmers and agricultural workers and their
families
• Discourage migration to urban areas.
• Face the challenges arising out of economic liberalization and globalization.
Question 01. How can we define
management?
(a). As a process.
(b). As a discipline.
(c). As a science.
(d). All of the above.
(d). All of the above.
Question 02. Which is a type of manager?
(a). Top level manager.
(b). Middle level manager.
(c). Low level manager.
(d). All of the above.
(d). All of the above.
Question 03. Which is not a function of a
manager?
(a). Planning.
(b). Punishing the staff.
(c). Organizing.
(d). Leading.
(b). Punishing the staff.
Question 06. Who is an entrepreneur?
(a). Who performs ceremonial and
symbolic duties.
(b). Who directs and motivates
subordinates.
(c). Who identifies new ideas and
delegate idea responsibility to others.
(d). Who takes corrective action during
disputes.
(c). Who identifies new ideas and
delegate idea responsibility to others.
Which among the following is / are
Kharif Crop(s)?
1. Maize
2. Rice
3.Groundnut
4.Cotton
Select the correct option from the codes
given below:
A.1,2,3
B.1 & 3
C.2 & 4
D.1,2,3,4
D. 1,2,3,4
Which is the largest Wheat producing
state?
A.Uttar Pradesh
B.Madhya Pradesh
C.Punjab
D.Haryana
A. U ttar Pradesh
In which of the following countries,
International Rice Research center is
Located?
A.Thailand
B.Malaysia
C.Philippines
D.Indonesia
C. Philippines
Consider the following:
1.Rice
2.Wheat
3.Coarse cereals
4.Pulses
Which among the following correctly
represents Total Food Grains?
1+2
1+2+3
1+2+4
1+2+3+4
1+2+3+4
National Policy on Agriculture

• The Indian agricultural sector is also on the verge (edge or border) of a

significant transition. The government, through the new agricultural policy,
allows farmers to sell their produce to whomever and wherever they want.
Farmers would have to harness new innovations to match the changing
dynamics and stay updated with market knowledge.
• The ambitious farm liberalisation agenda of the government in the form of three
bills, which were currently enacted in the legislation, could be a new way of
engaging food producers and their buyers. These three bills would work to
reduce inefficiencies through productive investments and allow free trade
between farmers and buyers. This new policy would also provide a requisite
forum for buyers to avail the correct remuneration to sell their goods.
National Policy on Agriculture

New Agr icultur al Policy: The Thr ee Agr i Refor ms

•In September 2020, three agri reform bills— The Farmers 'Produce Trade and
Commerce (Promotion and Facilitation), the Farmers' (Empowerment and
Protection) Price Assurance and Farm Services Agreement and the Essential
Commodities (Amendment) Act— were introduced by the government as a step to
raise farmers' incomes in the coming years.
The Farmers' Produce Trade and Commerce (Promotion
and Facilitation) Bill, 2020

• At present, the Indian farmers face difficulties because of various restrictions,

including limitations to selling their commodities only to the state government's
registered licensees and prohibition on selling produce outside the notified
Agricultural Produce Mar ket Committees (APMC) market yards. Along with
this, due to prevalence of various APMC laws, by the state governments, there
are hinderances in the free flow of agricultural trade between states.
• The new bill seeks to build an environment wherein farmers and traders can
enjoy the freedom of choice regarding selling and purchasing of produce; this
will facilitate remunerative prices through competitive, alternative trading
channels to promote efficient, open and barrier-free interstate and intrastate trade.
The Farmers' Produce Trade and Commerce (Promotion
and Facilitation) Bill, 2020

• This bill is a historic step towards unlocking the country's heavily regulated
agricultural markets. It will open more farmers' options, reduce farmers'
marketing costs, and allow them to get better prices. It will also allow farmers
from regions with surplus outputs to receive better prices and lower prices for
customers from regions with shortages.
The Farmers (Empowerment and Protection) Agreement of
Price Assur ance and Farm Services Bill, 2020

• With an aim to transform the agriculture sector, The new bill seeks
to provide a national agricultural agreement system that protects
and empowers farmers to interact equally and transparently with
agribusiness companies, processors, wholesalers, exporters or
major retailers in the field of agricultural services and sell future
agricultural produce at mutually agreed remunerative price
structures.
The Farmers (Empowerment and Protection) Agreement of
Price Assur ance and Farm Services Bill, 2020
• This law would shift the risk of market unpredictability from the
farmer to the sponsor and allow the farmer to access new
technologies and better inputs. It will reduce the marketing costs
and increase farmers' earnings. Farmers can participate in direct
marketing so that the intermediaries are eliminated, resulting in
maximum price realisation. Through this bill, farmers have been
given adequate protection, and with clear timelines for redress, an
efficient dispute resolution process has been established.
The E ssential Commodities (Amendment) Bill, 2020

• Although India has become a surplus in most agri commodities, the

entrepreneurial spirit has dampened (decrease) because farmers
have been unable to get better prices due to the lack of investments
in cold storage, warehouses, refining and export services. When
there are bumper harvests, especially of perishable commodities,
farmers suffer huge losses.

• The new bill aims to exclude items— from the list of essential
commodities— such as cereals, pulses, oilseeds, edible oils, onions,
and potatoes.
The E ssential Commodities (Amendment) Bill, 2020

• This will alleviate concerns of undue regulatory intervention by private

investors in their business operations. The ability to grow, keep, transport,
distribute and supply will harness the economies of scale and draw direct
private sector/foreign investment into the agricultural sector.

• The law would help accelerate investments in cold storage and food supply
chain modernisation. It will benefit farmers and customers alike, while at the
same time bring in price stability. It would create a favourable business
climate and avoid wastage of agri products due to the lack of storage
facilities.
Agri Reform Bills Pros Cons

•Permits the sale of produce

•The state's income from the
outside the Agricultural Produce
respective mandis would be lost.
Market Committee (APMC)
While the bill proposes to abolish
The Farmers' Produce Trade and mandis.
the middleman, farmers across
Commerce (Promotion and •No cess or levy outside the
various states believe that the
Facilitation) Bill, 2020 mandis will be charged to
scheme would lead to the end of
farmers.
Minimum Support Price (MSP)
•Permits interstate trade of
regime.
agricultural produce.
 •Given that companies might be
•This policy encourages ‘contract
more interested in dealing with
farming’ wherein farmers enter
The Farmers (Empowerment & groups of farmers and not with
into direct contracts with buyers
Protection) Agreement of Price individual farmers, the probability
who want to purchase farm
Assurance and Farm Services Bill, of conflicts will increase.
produce by removing
2020 •Dealing with an agent is much
intermediaries appointed by the
better from a business point of
state APMC.
view.
 •It deregulates manufacturing, storing,
•If prices of perishables increase by
and selling of a range of food products,
100% or non-perishables by 50%, the Act
including cereals, pulses, edible oils, and
can be invoked.
The Essential Commodities onions, except in rare situations.
•This legalises hoarding effectively,
(Amendment) Bill, 2020 •It can bring in new investments from
which can be devastating for prices of
FDI and large companies in
vital commodities such as vegetables
infrastructure provisions, e.g., cold
and pulses.
storage.
FOOD AND AGRI BUSINESS GROWTH
IN INDIA
•Agriculture is the primary source of livelihood for

about 58% of India’s population.

•Gross Value Added by agriculture, forestry, and

fishing was estimated at Rs. 19.48 lakh crore (US$

276.37 billion) in FY20.

• The Indian food industry is poised for huge
growth, increasing its contribution to world food
trade every year due to its immense potential for
value addition,

• particularly within the food processing industry.

Indian food and grocery market is the world’s
sixth largest, with retail contributing 70% of the
• The Indian food processing industry accounts
for 32% of the country’s total food market,

• one of the largest industries in India and is

ranked fifth in terms of production,
consumption, export and expected growth
 Market Size
•The Economic Survey of India 2020-21 report stated that in FY20, the total food
grain production in the country was recorded at 296.65 million tonnes— up by 11.
44 million tonnes compared with 285.21 million tonnes in FY19.

• The government has set a target to buy 42.74 million tonnes from the central
pool in FY21; this is 10% more than the quantity purchased in FY20. For FY22, the
government has set a record target for farmers to raise food grain production by
2% with 307.31 million tonnes of food grains. In FY21, production was recorded
at 303.34 million tonnes against a target of 301 million tonnes.
• Production of horticulture cropsin India wasestimated at a record 326.6
million metric tonnes(MMT) in FY20 asper third advance estimates, an
increase of 5.81 million metric tonnesover FY20.

• India hasthe largest livestock population of around 535.78 million,

which translatesto around 31% of the world population.

• Milk production in the country isexpected to increase to 208 MTin FY21

from 198 MT in FY20, registering a growth of 10% y-o-y. Area under
horticulture isprojected to rise by 2.7% in FY21.
• Sugar production in India reached 26.46 MT between October
2019 and May 2020 sugar season according to Indian Sugar
Mills Association (ISMA).

• India is among the 15 leading exporters of agricultural products

in the world. Agricultural export from India reached US$ 38.54
billion in FY19 and US$ 35.09 billion in FY20.

• The organic food segment in India is expected to grow at a 10%

during 2015-25 and is estimated to reach Rs. 75,000 crore (US$
10.73 billion) by 2025 from Rs. 2,700 crore (US$ 386.32 million)
in 2015.
• The processed food market in India is expected to grow to Rs.
3,451,352.5 crore (US$ 470 billion) by 2025, from Rs. 1,931,288.7 crore
(US$ 263 billion) in FY20 on the back of government initiatives such as
planned infrastructure worth US$ 1 trillion and Pradhan Mantri Kisan
Sampada Yojna.

• The food processing industry employs about 1.77 million people. The
sector allows100% FDI under the automatic route.
• Between April 2020 and February 2021, the total value of
processed food products exports was Rs. 43,798 crore (US$
6.02 billion).

• India exported key processed food products such as pulses,

processed vegetables, processed fruitsand juices, groundnuts,
guar gum, cereal preparations, milled products, alcoholic
beveragesand oil meals.
 Major investments and developments in agriculture

•In March 2020, Fact, the oldest large‑scale fertiliser

manufacturer in the country, crossed one million production and
salesmark.

•Nestle India will invest Rs. 700 crore (US$ 100.16 million) in
construction of itsninth factory in Gujarat.

•In November 2019, Haldiram entered into an agreement for

Amazon'sglobal selling program to E-tail itsdelicaciesin the
United States.
• In November 2019, Coca-Cola launched ‘Rani Float’ fruit juices
to step out of itstrademark fizzy drinks.

• Two diagnostic kitsdeveloped by Indian Council of Agricultural

Research (ICAR) - Indian Veterinary Research Institute (IVRI)
and the Japanese Encephalitis lgM ELISA were launched in
October 2019.

• Investment worth Rs. 8,500 crore (US$ 1.19 billion) have been
announced in India for ethanol production.
 various schemes, reforms and policies
•Unprecedented enhancement in budget allocation

•Fixing of MSPat one-and-a half timesthe cost of production

•Increase in procurement from farmers

•Income support to farmersthrough PM KISAN

•Pradhan Mantri Fasal BimaYojana (PMFBY)

•Institutional credit for agriculture sector

•Providing Soil Health Cardsto farmers

• Promotion of organic farming in the country

• Neem Coating of Urea

• Agri Infrastructure Fund

• Promotion of FPOsScheme

• National Bee and Honey Mission (NBHM)

• Pradhan Mantri Krishi Sinchai Yojana (PMKSY)

• Micro Irrigation Fund

• Agricultural Mechanization

• Changesin Disaster Relief Standards

• Setting up of E-NAM extension Platform

• Improvement in farm produce logistics, Introduction

of Kisan Rail

• Creation of a Start-up Eco system in agriculture and

allied sectors
https://mofpi.nic.in/
 PMKSY
• GOI has approved a new Central Sector Scheme –
Pradhan Mantri Kisan SAMPADA Yojana (Scheme for

Agro-Marine Processing and Development of

Agro-Processing Clusters) with an allocation of Rs.
6,000 crore for the period 2016-20 coterminous with
the 14th Finance Commission cycle.

• implemented by Ministry of Food Processing Industries

(MoFPI).
 Schemes under PMKSY
• Mega Food Parks
• Integrated Cold Chain and Value Addition Infrastructure
• Creation/ Expansion of Food Processing/ Preservation Capacities (Unit
Scheme)
• Infrastructure for Agro-processing Clusters
• Creation of Backward and Forward Linkages
• Food Safety and Quality Assurance Infrastructure
• Human Resources and Institutions
• Operation Greens
“Production Linked Incentive Scheme for Food
Processing Industry (PLISFPI)
• Support Food manufacturing entities with stipulated minimum
Sales and willing to make minimum stipulated investment for
expansion of processing capacity and Branding abroad to
incentivise emergence of strong Indian brands.:

• Support creation of global food manufacturing champions;

• Strengthen select Indian brand of food products for global
visibility and wider acceptance in the international markets;

• Increase employment opportunities of off-farm jobs,

• Ensuring remunerative prices of farm produce and higher income