INDIAN AGRICULTURE INDUSTRY AT A GLANCE IN 2020 - 2021
The share of agriculture and allied sectors in gross value added (GVA) of India was 17.8 % in FY20. In 2020-21, the total food grain production was 298 million tonnes in India. Production of horticulture crops in India was estimated at a record 319.56 million metric tonnes (MMT) in FY20. India has the largest livestock population of around 535.78 million, which translates to around 31% of the world population. Milk production in the country is expected to increase to 208 MT in FY21 from 198 MT in FY20, registering a growth of 10% y-o-y. Sugar production in India reached 26.46 MT during the current sugar season according to the Indian Sugar Mills Association (ISMA). During 2020 crop year, food grain production reached a record of 296.65 million tonnes.
The production of fruits, flowers, spices and honey is expected to rise in the coming financial year.India is the largest producer of spices, pulses, milk, tea, cashew, and jute, and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton, and oilseeds. Further, India is second in the global production of fruits and vegetables and is the largest producer of mango and banana.
The organic food segment in India is expected to grow at a CAGR of 10% during 2015-25 and is estimated to reach Rs. 75,000 crore (US$ 10.73 billion) by 2025. The Indian food processing industry is expected to reach US$ 535 billion by 2025-26 on the back of government initiatives.
According to the Department for Promotion of Industry and Internal Trade (DPIIT), the Indian food processing industry had attracted Foreign Direct Investment (FDI) equity inflow of about US$ 10.20 billion between April 2000 and September 2020, the first half of the financial year.
Agricultural ExportsIndia is among the 15 leading exporters of agricultural products in the world. Agricultural export from India reached US$ 35.09 billion in FY20. The total agricultural export was US$ 13.73 billion between April and December 2020.
Total agricultural export from India grew at a CAGR of 2.27% during FY16-20 to reach US$ 35.09 billion in FY20. India's spices export increased quite considerably. Indian Agriculture product exports is likely to reach US$ 60 billion by 2022.
Covid ImpactAs with most of the Indian industries, the agriculture also had its fair share of negative impact owing to the corona virus scare and the associated lockdown. The first wave, though did not trouble the villages that form the backbone of agriculture, caused some troubles with the logistics of the yield movements. The second wave entered all the nook and corner of India, mostly the villages and battered the inhabitants left and right. Armed with not much medical infrastructure, the agricultural industry workers suffered a lot.
