Indian Agriculture Market Size, Share, Analysis, Demand: By Sector: Farming, Agricultural Equipment, Fertilizers, Pesticides, Warehousing, Cold Chains, Dairy, Floriculture, Apiculture, Sericulture, Seeds, Fisheries, Poultry, Animal Husbandry, Animal Feed, Bio-Agriculture; Regional Analysis; Competitive Landscape; 2024-2032

Indian Agriculture Market Size

The Indian agriculture market reached a value of approximately USD 457.26 billion in 2023. The market is projected to grow at a CAGR of 4.90% between 2024 and 2032, reaching a value of around USD 703.30 billion by 2032.

Indian Agriculture Market Outlook

• As per Invest Indian, In Indian, 59.1 Lakh ha area has been brought under organic farming by 2021-22.

• The milk production of Indian has increased to 230.58 Mn tonnes in 2022-23.

• As per the National Horticulture Database 2023-24, Indian produced 11.21 and 209.39 million metric tonnes of fruits and vegetables.

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Indian Agriculture Market Growth

As per the Indian agriculture industry analysis, the agricultural sector is a major contributor to Indian's GDP and a primary source of employment for most of the population. It presents significant growth opportunities, with Indian already ranking among the world's largest agricultural producers.

According to the World Bank, the total population of Indian has increased to 1.42 billion in 2022 from 1.41 billion in 2021, stimulating the growth of the Indian agriculture market.

As the population has increased, the demand for various agricultural commodities has risen significantly. This surge has prompted farmers to adopt improved techniques and methods in milk production, fishing, and livestock farming to meet the diverse food needs of the population.

Key Trends and Recent Developments

Increasing production, investments, evolving purchasing power of individuals, and regulatory changes are the major trends boosting agriculture market share In India.

September 6, 2023

ADAMA Ltd. launched Cosayr® and Lapidos® in Indian, its first insecticides with Chlorantraniliprole (CTPR), providing effective pest control for paddy and sugarcane, improving yields and crop quality.

November 22, 2023

Insecticides (Indian) Limited (IIL), a leader in crop protection and nutrition, is pioneering innovation with the launch of four advanced solutions—Nakshatra, Supremo SP, Opaque, and Million, aimed at revolutionizing modern agriculture.

July 26, 2023

Syngenta Indian has introduced its plant protection products, Incipio and Simodis, which effectively combat pests such as leaf folders, stem borers, and sucking insects that significantly reduce yields in paddy, cotton, and vegetable crops.

February 16, 2023

Best Agrolife (BAL), a leading agrochemical manufacturer in Indian, has launched six new formulations: Amito, Promos, Propique, Ghotu, Doddy, and Headshot, in addition to their flagship products Citigen and Vistara.

Regulatory changes

The India Income Tax Act exempts farm income from taxation, fostering growth in the agriculture market by making income from farm operations non-taxable.

Increasing production

The agricultural sector, a significant source of employment for most of the nation's populace, currently presents substantial growth prospects, bolstered by Indian's prominent global agricultural production status, thus increasing the Indian agriculture market value.

Increased Investments

Farmers have increased investments in modern farm infrastructure, encompassing irrigation, premium seeds, machinery, fertilizers, inventory, and cold storage facilities, among other advancements.

Evolving purchasing power of individuals

Increasing individuals' purchasing power stimulates agricultural expansion by fostering demand for premium products, prompting farmers to adopt advanced methods and diversify production, driving innovation and infrastructure development.

Indian Agriculture Industry Trends

The agriculture market in Indian is facilitated by several factors, including expanded presence of organized sectors, rising adoption of contract farming and mechanization, accessible loan options, boosted exports, increased use of agrochemicals and high-yield seeds, and heightened involvement of the private sector in manufacturing, branding, and marketing.

Increasing production and investments in modern infrastructure further enhance the sector's potential, fueled by Indian's global agricultural prominence. Evolving consumer purchasing power drives demand for premium products, prompting innovation and diversification in farming practices, which will further impact the agriculture demand growth.

Industry Outlook

Guar seed maintains a consistent lead in the share of total agriculture turnover at futures exchanges, with 18% in 2018-19, reflecting its stable demand and importance, as noted by SEBI Annual Report. Castor seed's share significantly increased from 6.2% in 2017-18 to 10.9% in 2018-19, indicating a rising interest in this commodity. Soybean fluctuated, holding 9% in 2018-19 after a peak at 10.3% in 2017-18, demonstrating variable market interest.

Guargum held steady with an 8% share in 2018-19, down slightly from 8.7% in 2017-18, while Chana/Gram also showed consistent demand, rising to 8% in 2018-19 from 7.6% the previous year. Soy Oil saw a sharp drop, not featuring in the 2018-19 data after peaking at 16.6% in 2016-17, indicating shifting market dynamics.

Rapeseed/Mustardseed and Crude Palm Oil (CPO) both showed decreased visibility, not featuring in 2018-19 after previous notable shares, reflecting changes in trading focus or market conditions. Cotton, included in 2017-18 with a 5.6% share, did not appear in the latest data, suggesting reduced turnover or market interest.

Jeera (Cumin seed) and Mentha Oil appeared in the data in previous years but were absent in 2018-19, suggesting fluctuations in market activity. Pepper showed minimal turnover, with a negligible 0.02% in 2017-18, indicating low trading volumes.

Overall, total agricultural turnover at futures exchanges saw significant variability, dropping to 53.9% in 2018-19 from a peak of 86.32% in 2017-18.

Agriculture Industry Statistics in India

The data from the Department of Agriculture & Farmers Welfare (Agriculture Census 2015-16) highlights the distribution of irrigated and un-irrigated areas by size classes under different crops. Paddy dominates the irrigated area with a total of 29,519 thousand hectares, primarily cultivated by marginal (11,063 thousand hectares) and small (6,510 thousand hectares) farmers. In contrast, un-irrigated paddy covers 19,623 thousand hectares, with significant contributions from marginal (7,467 thousand hectares) and small (4,891 thousand hectares) farms.

Wheat follows, with an irrigated area of 28,914 thousand hectares, mainly cultivated by semi-medium (6,553 thousand hectares) and medium (6,365 thousand hectares) farmers. The un-irrigated wheat area is 3,980 thousand hectares, predominantly managed by marginal (1,452 thousand hectares) and small (909 thousand hectares) farmers.

Other cereals cover 5,435 thousand hectares of irrigated land, with semi-medium (1,250 thousand hectares) and small (1,182 thousand hectares) farmers being the major contributors, positively impacting the agriculture industry in India. The un-irrigated area for other cereals stands at 20,507 thousand hectares, largely cultivated by small (4,824 thousand hectares) and semi-medium (5,089 thousand hectares) farms.

Total cereals occupy the largest irrigated area with 63,868 thousand hectares, heavily reliant on marginal (20,366 thousand hectares) and small (13,503 thousand hectares) farmers. The un-irrigated area for cereals totals 44,110 thousand hectares, with significant portions managed by marginal (13,177 thousand hectares) and small (10,623 thousand hectares) farms.

Total pulses have 4,379 thousand hectares under irrigation, with marginal (601 thousand hectares) and small (841 thousand hectares) farmers playing key roles. The un-irrigated area for pulses is 16,209 thousand hectares, dominated by marginal (3,102 thousand hectares) and semi-medium (4,229 thousand hectares) farmers.

Sugarcane occupies 4,360 thousand hectares of irrigated land, mainly cultivated by small (1,171 thousand hectares) and marginal (1,128 thousand hectares) farmers. The un-irrigated area for sugarcane is minimal at 297 thousand hectares, indicating a heavy reliance on irrigation.

Total oilseeds cover 9,338 thousand hectares of irrigated land, with semi-medium (2,425 thousand hectares) and small (1,865 thousand hectares) farms leading. The un-irrigated area is 15,975 thousand hectares, largely managed by small (4,304 thousand hectares) and semi-medium (4,564 thousand hectares) farmers.

Total fibres have 3,852 thousand hectares under irrigation, predominantly cultivated by semi-medium (1,025 thousand hectares) and small (841 thousand hectares) farmers. The un-irrigated area stands at 8,753 thousand hectares, with marginal (1,539 thousand hectares) and small (2,719 thousand hectares) farms being the major contributors.

Overall, all crops cover 95,578 thousand hectares of irrigated land, with marginal (26,478 thousand hectares) and small (20,297 thousand hectares) farmers being the primary cultivators. The un-irrigated area totals 96,176 thousand hectares, significantly managed by marginal (22,588 thousand hectares) and small (23,233 thousand hectares) farmers.

Competitive Landscape of the Indian Agriculture Market

• Leading players leverage extensive resources, strong distribution networks, and advanced technologies to maintain leadership positions.

• Companies differentiate their products through quality, branding, and innovation, offering high-quality seeds, fertilizers, and farm equipment with strong brand recognition.

• Competitive pricing strategies are crucial, with products segmented into different price tiers to cater to various consumer groups, from small-scale farmers to large agribusinesses.

• Significant investments in research and development drive technological advancements, including genetically modified seeds, precision farming techniques, and advanced irrigation systems. This will increase the Indian agriculture market revenue.

• Collaborations with government agencies, research institutions, and technology providers enhance product offerings and market reach, developing comprehensive agricultural solutions and entering new market segments.

Strategies for Competing in the Indian Agriculture Market

• Compliance with agricultural regulations and standards poses challenges, impacting time-to-market and costs.

• Expanding into underdeveloped rural areas requires tailored marketing strategies, local partnerships, and addressing specific agricultural needs.

• Emphasis on sustainable and eco-friendly farming practices provides a competitive edge among environmentally conscious consumers and regulatory bodies, propelling the growth of the agriculture market.

• Providing exceptional customer support and after-sales service, including agronomic advice, training, and technical support, is crucial for maintaining farmer loyalty and supporting the growth of the agriculture market.

• A strong brand reputation built on trust and reliability helps retain and attract farmers, positioning companies better in the Indian agriculture market.

Diverse Climatic Conditions and Government Support Strengthening the Indian Agriculture Market

• Diverse climatic conditions supporting a wide range of crops.

• Large agricultural workforce and traditional knowledge.

• Government support through subsidies and schemes will likely support the agriculture demand forecast.

• Significant contribution to GDP and employment.

Fragmented Landholdings and Inadequate Infrastructure Weakening the Indian Agriculture Market

• Fragmented landholdings limiting economies of scale.

• Inadequate infrastructure for storage and transportation.

• Dependency on monsoon rains and limited irrigation facilities.

• Low adoption of advanced agricultural technologies.

Growing Demand for Organic Farming and Technological Advancements Offering Opportunities in the Indian Agriculture Market

• Growing demand for organic and sustainable farming practices.

• Expansion of export markets for Indian agricultural products, will positively impact the Indian agriculture market dynamics and trends.

• Technological advancements in farming equipment and practices.

• Increasing investment in aggrotech startups and innovations.

Climate Change and Fluctuating Commodity Prices Posing Threats to the Indian Agriculture Market

• Climate change affect crop yields and patterns.

• Fluctuating commodity prices affecting farmer income.

• Water scarcity and depletion of natural resources.

• Policy changes and regulatory challenges.

Key Cost and Price Factors in the Indian Agriculture Market

• Price of seeds, fertilizers, pesticides, and other inputs significantly impact the overall cost structure for farmers.

• Labor costs and availability of skilled and unskilled labor influence production costs and pricing.

• Efficiency and cost of transportation, storage, and distribution infrastructure determine the final price of agricultural products.

• Investments in modern farming equipment and technology influence the cost structure and pricing of agricultural products, thereby influencing the agriculture industry in India.

• Government policies and subsidies for inputs like fertilizers and seeds significantly support production costs and pricing.

• Trade policies, including tariffs and import/export regulations, influence the cost and price of agricultural products.

• Costs associated with post-harvest management, processing, packaging, and marketing affect the final price of agricultural products.

Key Factors Impacting Farm Efficiency and Profitability in India's Agricultural Sector

• Income levels and productivity rates at the farm level determine the financial health and efficiency of the agricultural sector.

• Prices of inputs such as seeds, fertilizers, pesticides, and machinery directly impact farming costs and profitability.

• The extent of technology usage in farming practices, such as irrigation systems, mechanization, and modern farming techniques, influences productivity and efficiency.

• Farmers’ ability to access markets and sell their produce impacts the agriculture industry revenue. Efficient supply chains and transportation networks are crucial.

• The size and ownership structure of agricultural land affect productivity and investment in agriculture. Fragmented land holdings can lead to inefficiencies.

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Indian Agriculture Industry Segmentation

“Indian Agriculture Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Sector

• Farming

• Agricultural Equipment

• Fertilisers

• Pesticides

• Warehousing

• Cold Chains

• Dairy 

• Floriculture

• Apiculture

• Sericulture

• Seeds

• Fisheries

• Poultry

• Animal Husbandry

• Animal Feed

• Bio-Agriculture

Market Breakup by Region

• North Indian

• East and Central Indian

• West Indian

• South Indian

Indian Agriculture Market Share

Growing health and environmental awareness, enabling farmers to integrate bio-agriculture practices such as the use of organic fertilizers, compost, and crop rotation, thus driving the Indian agriculture market

Bio-agriculture offers various benefits such as improved soil health and structure, enhanced long-term productivity, leading to sustainable yields and reduced dependency on chemical inputs. Several bio-agriculture techniques emphasize water conservation through practices like mulching, drip irrigation, and rainwater harvesting while helping farmers optimize water usage.

Pesticides and fertilizers significantly boost crop yields by controlling pests and providing essential nutrients, enhancing productivity, and supporting food security. This increased agricultural output drives economic growth in rural areas. Additionally, improved productivity promotes efficient land use, reducing the need for agricultural expansion into natural habitats, aiding the Indian agriculture market.

Advanced agricultural equipment enhances efficiency, productivity, and sustainability. Modern machinery like tractors and harvesters increase operational speed and scale, while precision farming technologies optimize input use, improving yields and reducing waste. Environmentally friendly practices promoted by advanced equipment contribute to long-term sustainability. These advancements lead to cost savings, better market competitiveness, and new opportunities, driving economic growth and supporting food security.

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Leading Manufacturers in the Indian Agriculture Market

The company specializes in producing and developing agricultural and hybrid seeds, produces and markets agrochemicals, manufactures machinery for soil cultivation, sowing and plant protection, and manufactures Farm Equipment Rotary Tillers (Rotavator), and Disc Harrows.

Nuziveedu Seeds Limited: Founded in 1973, with its headquarters in Indian, Nuziveedu Seeds Ltd, an Indiann agribusiness, specializes in producing and developing agricultural and hybrid seeds for field crops like cotton, maize, rice, and more.

UPL Ltd (Advanta Seeds): Founded in 1969, with its headquarters in Indian, UPL Limited, produces and markets agrochemicals, industrial and specialty chemicals, chemical intermediates, and pesticides.

LEMKEN Indian: Founded in 1780, with its headquarters in Germany, Lemken Indian is a manufacturer of machinery for soil cultivation, sowing and plant protection.

Beri Udyog Pvt Ltd.: Founded in 1978, with its headquarters in Indian, Beri Udyog Pvt Ltd is a manufacturer of Farm Equipment under the brand name FIELDKING, offering Rotary Tillers (Rotavator), Disc Harrows, etc.

Other Indian agriculture market players are Deccan Farm Equipments Pvt. Ltd, Indian Agrovision Implements Pvt. Ltd, RSR Retail Pvt. Ltd, Chambal Fertilisers and Chemicals Limited, Coromandel International Limited, Dhanuka Agritech Ltd, BASF SE, and DuPont de Nemours, Inc. among others.

Indian Agriculture Market Regional Analysis

The agricultural land area for food grains in 2021-22 in Uttar Pradesh, Madhya Pradesh, and Punjab has been estimated to be 19.55, 16.17, and 6.67 million hectares respectively, according to the data from the government of Indian.

Government assistance is crucial for the development of Indian's agriculture sector, which remains the primary livelihood for over half the population. The Indian government supports farmers with subsidies for water, electricity, farm machinery, fertilizers, and hybrid seeds, among other resources, thereby providing several Indian agriculture market opportunities.

Key Highlights of the Report

Indian Agriculture Market Report Snapshots

Indian Agriculture Market Size

Indian Agriculture Market Growth

Indian Agriculture Market Trends

Indian Agriculture Market Share

Indian Agriculture Market Analysis

Indian Agriculture Manufacturers

Indian Agriculture Market Regional Analysis

*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.