Status of Indian

agriculture
Production of major agricultural and allied products

• Over the past five years, both the area and production of major food crops have shown
an increasing trend. Between 2019/20 and 2022/23, total food grain production increased
from about 298 million tons to 330 million tons: an increase of about 11 percent. Rice
registered an incremental production about 17 million tons, while wheat production
increased by about 3 million tons during this period. Total pulse production also witnessed
an increase of 3 million tonnes.

• Climate change has begun to adversely affect the agricultural sector. During the 2022/23
Rabi season, a heat wave due to delayed monsoon and erratic rainfall caused farmers to
incur heavy losses, including a 3.7 percent decline in paddy production.
Production status of major food crops
• Within the crop sector, horticulture contributes significantly to the economy with
a 33 percent share in agricultural GVA. India currently shows a record production
of 351.9 million tonnes of horticultural products which is produced on 28.1
million hectares (mHa) of land; this surpasses the area and production of food
grains. The productivity of horticulture crops has increased by 50 percent over
the past two decades; it now stands at 12.5 tons per hectare (t/ha), far exceeding
the productivity of food grains (2.2 t/ha). India is the world’s second-largest
producer of fruits and vegetables, with crops such as spices, plantation crops, and
aromatic crops contributing significantly to the development of the country’s
horticultural sector.
• The Indian horticultural sector ensures nutritional security and also
provides crop diversification activities, employment opportunities,
and improved farm income; however, increasing population,
uncertain supply and demand, and climate change impose challenges
and constraints on horticultural production systems.
Area and production status of horticultural
crops in India
• The livestock and fisheries sectors of the economy have been playing a
vital role in improving the socio-economic conditions of farmers, especially
those operating at a small and marginal scale.

• In the last decade, the livestock sector has shown a continuous and stable
CAGR of 7.6 percent. India is the world’s largest milk-producing country,
with a record production of 230.6 mT in 2022/23.

• Globally, it is also the largest producer of buffalo meat, the second-largest

producer of goat meat, and the third-largest producer of eggs and fish.
• At 9.8 mT annually, India stands eighth in the world for overall meat
production. Poultry contributes significantly to the overall growth of the
livestock sector, with a sustained increase observed in egg and poultry
meat production. India’s annual fish production has increased to a record
17.4 mT in 2022/23 from 14.2 mT in 2019/20, a 23 percent increase over a
three-year period.

• It presently holds the distinction of being the world’s second-largest

aquaculture producer and fourth-largest capture fishery producer.
• During the past decade, fish production has registered an annual growth rate of about 6.6 percent.
Inland fisheries currently contribute about three-fourths of the total fish production, with the
remainder coming from marine capture fisheries. Over the past decade, fish production from
capture fisheries (both marine and inland capture) has experienced stagnation; aquaculture, in the
same period, has exhibited a robust performance, thereby driving most of the sector’s growth.

• The major cultured species of inland freshwater fish include the major carps (Catla, Rohu, Mrigal)
as well as other minor and exotic carps, murrels, and catfish. Marine capture fish production
consists mainly of Indian oil sardines, Indian mackerel, tuna, croakers, sharks, and skates.
Mariculture involves the culture of marine species in enclosed structures; it is fast emerging as a
prospective avenue for future marine production. Some of the promising mariculture enterprises
include cage culture, seaweed culture, mussel and oyster culture, and ornamental fish culture.
Production of major agri allied products
in 2023
Farmers income and its main source

• The Government of India’s paramount objective is the elevation of farmers’

economic well-being. While Indian agriculture contributed only 18.2
percent to the country’s GVA in FY 2022/23, it remains the primary sector
for livelihood and employment, with over 45.5 percent of the nation’s
workforce engaged in agricultural and allied activities.

• Agricultural households generate income from various sources including

crop cultivation, animal husbandry, wages and salaries, and non-farm
business pursuits.
• While overall income of agricultural households has increased (INR 2,115 to INR
10,218) a notable shift has occurred in the composition of income sources, specifically
a decline in the proportion derived from crop cultivation. The surge in total income of
farming households observed between 2012/13 and 2018/19 can be attributed mainly
to substantially increased earnings from wages and animal farming; there has been,
however, a worrisome 2.7 percent annual decline in income from crop cultivation.

• Concerted efforts have been made to address this trend; these include the
introduction of enhanced crop varieties, micro-irrigation initiatives, risk management
strategies, and price support programmes specifically designed to bolster the crop
sector.
• Animal and fish farming are, at the same time, emerging as promising
sectors with significant growth potential. This positive shift
underscores the need to explore and capitalise on opportunities
within these domains, including the diversification of income sources
within agricultural households. Nurturing these sectors through
strategic policies and supportive frameworks can contribute not only
to the resilience of the agricultural economy but also to the overall
prosperity of farming communities.
Growth in farm household income across sources, all India,
2012/13 to 2018/19
Agricultural Trade
• Historically, India’s agricultural exports were characterized by spices, tea,
fish and fishery products, cashew nuts, and other distinctive commodities.
Evolving trade dynamics, however, have witnessed the ascendance of new
export leads including basmati rice, meat (particularly buffalo meat),
soybean meal, and groundnut seed. This diversification in export
commodities signifies the adaptability and dynamism of India’s agricultural
trade, including its ability to respond to shifting global demands.
• The composition of agricultural sector exports and imports in 1992 and
2022. This period saw an increase in the export share of cereals, livestock,
sugar and sugar products.

• As India moved toward and beyond self-sufficiency in these crops it began

to export greater quantities, resulting in a significant increase in total
agricultural exports.

• A decline was registered, on the other hand, in the share of exports of

cotton, coffee, tea, spices, mate and cocoa, products and preparations of
vegetables, and fruits and nuts.
• Among imports, the share of animal or vegetable fats and oils in total
agricultural imports has increased significantly during the period. India’s
demand for vegetable oil has been on the rise over this period and
domestic production has not been able to satisfy this demand.

• A decline has been registered, on the other hand, in the share of imports of
vegetables, fruits and nuts, cereal and cereal products, cotton, coffee, tea,
mate, cocoa and spices.
Composition of agricultural exports and imports, percent of
total, 1992 and 2022
• India’s presence in the global agri-food market is on the rise, demonstrating
export competitiveness in commodities such as basmati and non-basmati rice,
spices, and shrimps. Despite this, the untapped export potential of a number of
commodities indicates scope for expanding the share of agricultural exports. Lack
of a well-developed infrastructure, however, poses a significant obstacle as it
results in the spoilage of perishable goods and a reduction in export
competitiveness. Transportation presents a major challenge, including
congestion, the absence of dedicated cold chain transport corridors, and
inefficient logistics management; these further impact the country’s export
capabilities by increasing costs and causing delays.
• The second major challenge revolves around the quality and traceability of
agricultural produce. Indian agricultural products often face difficulties in meeting
rigorous international quality and traceability standards, which undermines their
reputation and export potential. Ensuring consistent product quality is made
more difficult by diverse farming practices and variations in quality across farms.
The complex and opaque nature of supply chains coupled with multiple
intermediaries makes tracking the origin and handling of products more
complicated; this heightens the risk of fraud and adulteration, which in turn
impacts consumer trust and food safety.