About 58% of the Indian population depends on agriculture as their main source of livelihood.
The food industry of India is known for enormous growth, increasing its constitution to world food trade every year due to its huge potential for value addition, particularly in the food processing industry. The Indian food and grocery market is sixth largest in the world, with retail contributing 70 per cent to the sales. The Indian food processing industry accounts for 32 per cent of the country’s total food market, one of the largest industries of India and is also ranked fifth in terms of production, consumption, export and growth. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13 per cent of India’s exports and six per cent of total industrial investment.
During 2017-18 crop year, food grain production is estimated at 284.83 million tonnes. In 2018-19, Indian government is targeting for foodgrain production of 285.2 million tonnes. Milk production was estimated at 165.4 million tonnes during FY17, and meat production was 7.4 million tonnes. As of September 2018, total area of land down with the kharif crops in India reached 105.78 million hectares.
India is the second largest fruit producer globally. Production of horticulture crops is estimated at approx 314.7 million tonnes in 2018-19 as per third advance estimates.
Total agricultural exports from India grew at a CAGR of 16.45 per cent over FY10-18 to reach US$ 38.21 billion in FY18. Between Apr 2018-Feb 2019 agriculture exports were US$ 34.31 billion. India is also the largest producer, consumer and exporter of spices and spice products. Spice exports of India crossed US$ 3.1 billion in 2017-18. Tea exports of India reached a 36 year high of 240.68 million kgs in 2017 while coffee exports reached record 395,000 tonnes in 2017-18.
Food & Grocery retail market in India reached US$ 380 billion in 2017.
ACHIEVEMENTS IN THIS SECTOR
Agriculture storage capacity in India increased at 4 per cent CAGR between 2014-17 to reach 131.8 million metric tonnes.
Coffee exports reached record 395,000 tonnes in 2017-18.
Between 2014-15 and 2017-18 (up to December 2017), capacity of 2.3 million metric tonnes was added in godowns while steel silos with a capacity of 625,000 were also created during the same period.
Sugar production in India has reached 27.35 million tonnes (MT) in 2018-19 sugar season, as of March 15 2019, according to the Indian Sugar Mills Association (ISMA).
The Electronic National Agriculture Market (eNAM) was launched in April 2016 to create a unified national market for agricultural commodities by networking existing APMCs. Till May 2018, 9.87 mn farmers, 109,725 traders were registered on the e-NAM platform. 585 mandis in India have been linked while 415 additional mandis will be linked in 2018-19 and 2019-20