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17 good opportunities

for entrepreneurs

in the

Indian Agriculture

Industry

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17 good opportunities for entrepreneurs in the Indian Agriculture Industry

Driven by factors such as a huge consumer base, rising incomes, easier availability of credit, emergence ofcontract farming, growth of organized food retail and a shift in the Indian government policies in favour of agreater support for agriculture; the Indian agriculture industry has tremendous scope for entrepreneurs.

Agriculture represents an important segment of the Indian economy both in terms of contribution to the grossdomestic product as well as a source of employment to millions of people across the country. A new reportreleased by IMARC Group provides a comprehensive insight into the Indian agriculture industry and its varioussegments and sub segments. The following is the list of the segments evaluated by the report:

Farming: The farming sector constitutes of plantation crops, cereals, vegetables, fruits,pulses and spices. It currently constitutes the biggest segment of the Indian agricultureindustry.

Agriculture Equipment: Despite a strong growth in recent years, the penetration oftractors and a number of related equipment still remain relatively low in India. This isexpected to leave a lot of room for future growth.

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Fertilizers: A number of government and non-government awareness campaigns toeducate farmers on the benefits of fertilizers. Promotion of fertilizers throughtelevision, radio and customized rural workshops are expected to increase theconsumption of fertilizers in the coming years.

Pesticides: According to estimates, crop losses due to the non-usage of pesticides inIndia are currently around 20%-30% of the total yield. With the demand ofagricultural products expected to continue increasing in the coming years, we expecta number of initiatives to increase the average crop yields per hectare. Pesticides areexpected to play a key role in increasing crop yields.

Warehousing: Agricultural warehousing (excluding cold chains) currently represents amuch smaller segment compared to industrial warehousing. This segment isexpected to grow at a CAGR of around 10% in the next five years.

Cold Chains: Despite a strong growth in cold chain establishments, India’s cold chaininfrastructure significantly lags behind the developed countries. A significant share ofthe total agricultural produce is wasted each year due to a lack of adequate coldchain facilities.

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Food Processing: Growth in the urban population and increasing employment are drivingthe Indian consumer to live a fast-paced life. Processed foods like ready-to-eat and snacksare becoming quite popular; particularly in cities and towns. We expect urbanization levelsto increase in the coming years creating a positive impact on the food processing industry.

Dairy: Rising incomes and increasing trends of health and wellness is expected to pushthe demand of dairy products in the country. Dairy products such as milk and curdhave historically been associated with health and wellness. We expect value addedproducts such as low fat and fortified dairy products to enjoy strong growth in thecoming years.

Floriculture: As a result of a strong growth in both exports and domestic demand, the areaunder flower cultivation has witnessed a robust growth over the last few years. The metrosand the larger Indian cities currently represent major consumers of flowers in the country.As a result of increasing urbanization and influence of western cultures, “saying it withflowers” is becoming quite popular on a number of occasions such as Valentine’s Day,birthdays, festivals, anniversaries, marriages, farewell parties, religious ceremonies, etc.

Apiculture: The per capita consumption of honey still remains low in India comparedto a number of developed countries due to the lack of awareness regarding thebenefits of honey in diets and the fact that Indian food habits do not call for the useof honey in a big way. Beeswax, the other major product obtained from bee coloniesis mainly used in the production of cosmetics, soaps, pharmaceuticals, etc.

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Sericulture: Sericulture refers to the art of rearing silkworms for the production ofsilk. India is currently the world’s second largest producer of raw silk and the largestconsumer of raw silk and silk fabrics.

Seeds: India is one of the largest producers and consumer of seeds in the world. Thegrowth of the Indian seed industry has occurred parallel to the growth of theagricultural industry. This sector was earlier dominated by a number of public sectorseed companies, however, following the easing of government regulations and theimplementation of a new seed policy, private participation and R&D in this sector hassignificantly increased.

Fisheries: The fisheries sector is composed of inland fishes, marine fishes, shrimpsand scampi. Increasing per capita consumption, growth of organized food retail andincreasing awareness on the health benefits of fishes are some of the factors thatare expected to drive this market in the coming years.

Poultry Sector: The poultry industry in India has undergone a major shift instructure and operation during the last few decades transforming from a merebackyard activity into a major industry with the presence of a large number ofintegrated players with successful implementation of contract poultry farming on alarge scale.

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Animal Husbandry: Animal husbandry refers to the agricultural practice ofbreeding and raising livestock. Similar to other agricultural sectors, the marketfor animal husbandry products is highly unorganized. Live animals such asbuffaloes, goats, sheep, pigs, etc. are generally sold in livestock markets whichare weekly markets. The animals are either sold individually (cattle, buffaloes),or are grouped in lots of 10-20 (buffalo, sheep and goats).

Animal Feed: The animal feed market can be segmented into poultry feed, cattlefeed and aqua feed. Some of the factors which are currently driving this marketinclude - rising livestock population, growth of the dairy and animal husbandrysectors, rising export demand, etc.

Bioagriculture: The bioagriculture market can be segmented into transgeniccrops, biopesticides and biofertilizers. Biofertilizers currently account for most thetotal market demand.

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To gain a deeper understanding of the Indian agriculture industry you can read the complete report titled“Agriculture Industry in India: Market Segments, Key Drivers, Challenges, Market Trends and Regulations”. Thisreport is an outcome of an intensive research on the Indian agriculture industry and draws upon acomprehensive analysis of every major agriculture segment in India. The study, which is based both on deskresearch and four waves of qualitative primary research has delved deeply into the Indian agriculture market:

What We Have Achieved in this Report ?

• Comprehensive situation analysis of the Indian agriculture market and its dynamics.• Identifying all application segments/sub-segments and quantifying their current and future market potential.• Providing robust long range value and volume forecasts for all segments and sub-segments.• Providing an understanding of the key drivers and restraints and their impact on current and future market

scenario.

For an Executive Summary of Indian Agriculture Industry Report, Visit the following link: http://www.imarcgroup.com/agriculture-industry-in-india

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