Only 40 percent agricultural activities in India are mechanized, and more than 30 percent farmers rely on informal credit and pay high interest rates.
Yields are 35% – 50% lower than global benchmarks resulting in low farmer incomes.
The level of processing and value addition across key perishable categories is low.
India is the largest contributor to global agricultural emissions. More than 40 percent of its soil is deficient in nitrogen, organic carbon and phosphorus..
Indian produce in certain categories (e.g., tomatoes) is not able to meet the international quality requirements criteria for use in food processing.
Cost of agri-logistics is 30% – 40% higher than global benchmarks due to fragmented storage and logistics infrastructure.
From USD 50 Bn in FY22 $90-100Bn Agri products exports by 2030 |
From 5-10% currently to 40-60% Precision farming adoption (by 2030) |
From ~40% currently to
<20% Reduction in food wastage / spoilage by 2047 |
From ~40% currently to 60% Farm Mechanization by 2030 |
From $300 Bn in 2020 to
$600+Bn Increase in food processing industry (by 2026-27) |
45-50% Reduction in GHG emissions from agri by 2047 vs. 2019 emissions |
In these clusters India Inc could work with FPOs and support farmers on inputs and crop selection, address infrastructural gaps (e.g., shrimp cold chain), offer financing for mechanization, catapult value-add activities (e.g., mango processing), and establish export linkages
To increase value-added exports, states with high primary food processing capacity (e.g., Andhra Pradesh for shrimps and Tamil Nadu for potatoes and onions) could be prioritized to establish these clusters.
Key actors: Agricultural value chain players, in partnership with central or state government
Farm-proximate pre-processing, cold storage and processing facilities could catalyze shift from single-product to multipurpose storages, reducing market risk and improving storage utilization.
Focus states could be those with medium to low cold-chain capacity against demand (e.g., Maharashtra, Madhya Pradesh, Karnataka, AP, Tamil Nadu, Rajasthan).
Key actors: Processors and Agri-logistics players
Co-create and leverage digital solutions in partnership with agritech startups across farming, financing and market access enabled via advancements such as agri stack and IoT devices.
Digital export platforms could be established for specific commodities (e.g., shrimps, mangoes, bovine, milk products, etc.). The platforms can be set up to ensure compliance with export requirements through better traceability via GPS-enabled tracking systems, awareness about SPS standards of importing markets, investments in R&D and treatment facilities (e.g., common mechanized drying infrastructure).
Key actors: Product-specific consortiums / forums, in partnership with Agri start-ups and the government
Introducing agricultural curriculum at the school level could create broad-based awareness about good farming practices early on.
Separately, through ecosystem partnerships, farmers can be trained on the use of advanced farming technologies and sustainable practices and provided the latest updates on inputs, climate and weather, crop demand, and government schemes to enable them to make better decisions.
Key actors: Companies in agricultural value chain, in collaboration with ICAR and state agricultural bodies
Incentives and focused partnerships could accelerate R&D in agriculture in India. Research areas could include productivity improvement, climate-resilient and water-efficient seed varieties that meet criteria for exports/processing, microbial/ organic solutions for crop protection, precision farming technologies (including robots), and new waste-to-energy approaches.
Key actors: Food processing players, agri-start-ups, agri-equipment players, etc., in partnership with agri R&D and government institutions (e.g., ICAR, IARI, NABARD)
Acting as change agents who support large scale sustainability focused growth of agricultural ecosystem by orienting product development, business operations and technology towards contributing positively to social and environmental impact while achieving economic aspirations.
Achieving net-zero emissions in agriculture could be boosted by introducing a carbon credit system in which farmers earn credits for adopting sustainable practices and later redeem them for low interest loans or subsidies.
Key actors: Collaboration between financial institutions, auditors, agricultural firms, agtechs and government research organizations
Promoting FPO creation by eliminating differential treatment between different types of FPOs (producer vs cooperative, etc.) and giving them agri-start-up / MSME status could accelerate delivery of benefits like tax exemptions, easy access to credit guarantees, collateral-free loans, etc.
Policymakers could also set up a national board for FPOs (NBFPO) on the lines of the MSME board to promote, provide a network to, and monitor progress of FPOs and link them with a KVK, agri-university, or development institutions (ICAR, IARI, etc.) for continuous technical support and guidance.
Key actors: Government bodies
India could create an enabling policy environment for introducing emerging technologies - ranging from hybrid / genetically modified seeds, next generation molecules, nano technology, big data, IoT, AI and ML - that accentuate the process of optimising yields, enhancing climate resilience and improving farmer economics. Policy makers could support by incentivising R&D, streamlining procedures for introduction of technologies, protecting IPRs and incentivising introduction of these technologies in India
Key actors: Government bodies
Policy makers could continue it’s efforts accelerating private sector investment in processing, storage and logistics infrastructure through targeted schemes such as Pradhan Mantri Kisan SAMPADA Yojana, PLI Scheme for Food Processing and Animal Husbandry Infrastructure Development Fund. India could benchmark incentives being given by other countries for value addition of specific products and design incentives accordingly.
Key actors: Government bodies
India could promote its agricultural exports through a variety of measures: harmonizing FSSAI standards with global standards, signing G2G Equivalence Mutual Recognition Agreements, exporting directly to QSRs and retailers, advertising Indian brands among end customers, etc.
Key actors: Central export agencies (MPEDA, APEDA, EIC, etc.), consortiums such as AISEF (spices), and state agricultural marketing boards (e.g., TNSAMB)
India could create an Agriculture Council on the lines of the GST Council to harmonize policies and processes across FPOs, corporate farming, mandis, etc. This council could have representatives from the centre as well as states.
Key actors: Ministry of Agriculture and Farmers Welfare