Agro based industries

Introduction

Agriculture is the foremost source of livelihood for about 60% of India’s population. Gross Value Added by agriculture, forestry and fishing is estimated at Rs 17.67 trillion (US$ 274.23 billion) in FY18.

 

The Indian food industry is expected for huge growth, increasing its contribution to world food trade every year due to its immense potential for value addition, particularly within the food processing industry. The Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. The Indian food processing industry accounts for 34% of the country’s total food market, which is one of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth.

 

Market Size

During 2018-19* crop year, food grain production is estimated at record 285.2 million tonnes. In 2019-20, Government of India is targeting foodgrain production of 286.9 million tonnes. Milk production was estimated at 165.4 million tonnes during FY17, while meat production was 7.4 million tonnes. As of February 2019, total area sown with kharif crops in India reached 105.88 million hectares.

 

India is the second largest fruit producer in the world. Production of horticulture crops is estimated at record 309.16 million tonnes (mt) in 2018-19 as per second 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. In April-August 2018 agriculture exports were US$ 15.67 billion. India is the largest producer, consumer and exporter of spices and spice products. Spice exports from India reached US$ 3.1 billion in 2017-18. 

 

Food & Grocery retail market in India was worth US$ 383 billion in 2018.