The Indian farming market was worth INR 16,587 Billion in 2018. The market is further projected to reach INR 30,675 Billion by 2024, growing at a CAGR of 10.8% during 2019-2024. The farming sector constitutes one of the most important areas of the Indian economy. India currently represents the world's largest producers of many fresh fruits and vegetables, major spices, selected fibrous crops such as jute, several staples such as millets and castor oil seed. India is also the second largest producer of wheat and rice, the world's major food staples. Currently, India ranks within the world's five largest producers of over 80% of agricultural items, including many cash crops such as coffee and cotton. Crop yields in India have also increased significantly over the last several decades. Factors such as farm mechanization, increasing usage of fertilizers, improving irrigation techniques, better seeds and easy availability of credit can be regarded as the major drivers of the Indian farming industry.
For the purpose of this report, we have defined the farming market to be composed of the following sectors - fruits, vegetables, cereals, plantation crops, spices and pulses.
Indian Farming Market: Drivers
- As a result of increasing farm mechanization, increasing usage of fertilizers, increasing usage of efficient seeds, etc. the average crop yield is expected to increase continuously during the next five years creating a positive impact on farm production in the country.
- A strong support from the Indian government is also driving the farm production. Currently, a number of subsidies and incentives are provided by the Indian government for various agriculture related products like fertilizers, seeds, agricultural equipments etc. The Indian government has also set minimum support prices (MSPs) for various crops in the country. This is expected to ensure remunerative prices for farmers to encourage higher investment and production of agricultural commodities.
- Driven by strong economic growth and rising incomes, the per capita consumption of food products such as fruits, vegetables, pulses, etc. are expected to increase continuously during the forecast period. This, coupled by a continuous population growth, is expected to create a strong demand for farm products.
- The emergence of contract farming and organized retail is also expected to create a positive impact on the Indian farming market.
- Based on the crop type, the market has been segmented as fruits, vegetables, cereals, plantation crops, spices, pulses and others. Amongst these, plantation crops represent the largest segment.
- Based on the application, the market has been segmented as fresh consumption, food processing, healthcare, feed, textiles and others. At present, food processing accounts for the biggest market share.
- On the basis of distribution channel, the market has been segmented as self-consumption, traditional retail, business-to-business, modern retail, online and others. Currently, traditional retail exhibits a clear dominance in the market.
- The market has also been segmented on the basis of various regions into North India, South India, East India and West India. South India presently holds the leading position in the market.
- Based on the crop seasonality, the market has been segmented as rabi, kharif and zaid.
- The competitive landscape of the market has been examined in the report and the profiles of key players have also been provided.
This report provides a deep insight into the Indian farming market covering all its essential aspects. This ranges from macro overview of the market to micro details of the industry performance, recent trends, key market drivers and challenges, SWOT analysis, Porter’s five forces analysis, value chain analysis, etc. This report is a must-read for entrepreneurs, investors, researchers, consultants, business strategists, and all those who have any kind of stake or are planning to foray into the Indian farming industry in any manner.
Key Questions Answered in This Report:
- How has the India farming market performed so far and how will it perform in the coming years?
- What is the breakup of the Indian farming market on the basis of various crop types?
- What is the breakup of the Indian farming market on the basis of various applications?
- What is the breakup of the Indian farming market on the basis of distribution channels?
- What is the breakup of the Indian farming market on the basis of various regions?
- What is the breakup of the Indian farming market on the basis of crop seasonality?
- What are the various stages in the value chain of the Indian farming market?
- What are the key driving factors and challenges in the Indian farming market?
- What is the structure of the Indian farming market and who are the key players?
- What is the degree of competition in the Indian farming market?