INDUSTRY OVERVIEW


Agriculture still remains the main economic sector in India despite the farmers failing to gain profit from farming due to the lack of knowledge about management of resources and the appropriate use of cultivation, lack of knowledge about the latest machinery and irrigation techniques. India is the largest producer, exporter as well as consumer of spices and related products in the world.

Despite the focus on industrialisation, agriculture remains a dominant sector of the Indian economy both in terms of contribution to gross domestic product (GDP) as well as a source of employment to millions across the country.

It is expected that the spice exports will reach 3 billion US$ by the year 2016-17. With a team of qualified professionals with experience in the farming field and by educating the manpower on the latest irrigation methods and cultivation methods and by the efficient use of resources and machinery, including water, we are positive to change the viewpoint about farmers and farming.

Agriculture plays a vital role in the Indian economy. Over 70 percent of the rural households depend on agriculture as their principal means of livelihood. Agriculture, along with fisheries and forestry, accounts for one-third of the nation’s GDP and is its single largest contributor.

The country is also the largest producer, consumer and exporter of spices and spice products in the world and overall in farm and agriculture outputs, it is ranked second.

Agricultural exports constitute a fifth of the total exports of the country. In view of the predominant position of the Agricultural Sector, collection and maintenance of Agricultural Statistics assume great importance.

The total Share of Agriculture & Allied Sectors (Including agriculture, livestock, forestry and fishery sub sectors) in terms of percentage of GDP is 13.9 percent during 2013-14 at 2004-05 prices. [As per the estimates released by Central Statistics Office].

The Department of Agriculture & Cooperation under the Ministry of Agriculture is the nodal organisation responsible for the development of the agriculture sector in India. Under it, several other bodies such as the National Dairy Development Board (NDDB) work for the development of other allied agricultural sectors.


MARKET SIZE


There are multiple factors that have predominantly worked in tandem leading to the growth of the Indian agriculture sector in recent years:

  • Increasing private participation in Indian agriculture & usage of information technology are the trends that are being witnessed by the agriculture industry. The government has formed National Agroforestry Policy 2014 which encourages private participation in agro forestry projects as many restrictions regarding felling and transportation are being abolished.
  • The increase in consumption has negligible raw material requirement availability has made it the need of the hour to sow fresh plantations to meet the future demands and decrease imports of raw material.
  • Spice exports from India are expected to reach US$ 3 billion by 2016-17, on the back of creative marketing strategies, innovative packaging, strength in quality and a strong distribution network. The Indian spices market is pegged at Rs 40,000 crores (US$ 6.42 billion) annually, of which the branded segment accounts for 15 per cent
  • Growth in income and consumption, has led to ever increasing demand of raw material by panel products as well as food processing industry. Increase in population and per capita income has led to increase in import of raw material. 50% of the raw material requirement is being imported from other countries.
  • India is the biggest producer of pulses in the world at 19 MT and their biggest importer 3.5 MT.