INTRODUCTION
• “Agribusiness" is a portmanteau of the words agriculture and
business.
1. Definition: Intersection of agriculture and business
operations.
2. Scope: Covers production, processing, distribution, and retail.
3. Importance: Essential for food security and economic
growth.
4. Challenges: Climate change, resource management, and
sustainability.
5. Opportunities: Innovation in agri-tech, value-added
products, and sustainable practices.
STATISTICS
Statistics:
•Agriculture is primary source of livelihood, 54.6% of
population engaged and account for 18.6% GVA at current
price for 2022-23.
•Total Geographical area- 328.72 mha
• Total land under cultivation : 159 mha
•Net sown area- 140 mha
•Gross cropped area- 196 mha
•Net irrigated area- 68 mha
(Source: Ministry of agriculture and farmers welfare, Government of India 2022-23)
TRANSFORMATION OF
AGRICULTURE INTO AGRIBUSINESS
Pre-1900s: Traditional, subsistence farming with minimal
technology.
1900-1940s: Introduction of cash crops and early mechanization.
1940s-1960s: Green Revolution boosts yields with new
technologies.
1960s-1980s: Rise of industrial agriculture and vertical integration.
1980s-2000s: Expansion of agribusiness and introduction of GMOs.
2000s-2010s: Adoption of digital technologies and a shift towards
sustainability.
2010s-Present: Global agribusiness, advanced tech, and focus on
sustainability.
OBJECTIVE OF AGRIBUSINESS
Develop a competitive and sustainable private
sector led agribusiness sector
Increase productivity/reduce yield gaps
Commercialization of Agriculture
Use of modern technologies
Reducing cost of production
Value addition
• Export agriculture
SCOPE OF AGRIBUSINESS
1. Varied agro-climate.
2. Growing demand of agriculture inputs.
3. Rich livestock wealth.
4. Vast Coastline.
5. Agriculture extension system.
6. Production of vegetable and fruits.
7. Other allied activities
PRODUCTION OF
FOOD GRAINS AND
COMMERCIAL
CROPS
Food Grains –
Edible seeds or kernels of certain
cereal crops that are cultivated and
harvested for human consumption.
e.g.- Wheat, Rice, Maize, Pulses etc.
Commercial crops –
Crops that are primarily for sale
and profit rather than personal Tea Coffee
consumption.
e.g. - Cotton, Jute, Sugarcane, Tea,
Oil seeds.
Cotton Sugarcane
Production Economy of Grains and Commercial Crops (All
data are in million tons)
Crops 2020-21 2021-22 2022-23 2023-24
Rice 124.36 129.47 125.5 127.72
Wheat 124.36 107.74 110.55 112.92
Maize 31.64 33.73 35.36 33.14
Pulses 25.46 27.30 23.97 22.60
Cotton 35.90 31.11 33.66 32.52
Jute 8.95 9.76 8.98 9.25
Sugarcane 40.53 43.94 49.05 44.25
Total Oil Seeds 39.54 37.96 40.30 38.41
Tea 1.26 1.33 1.36 1.38
Coffee 0.33 0.34 0.33 0.35
Tobacco 0.74 0.71 0.80 0.82
State-wise
Production of Food RW
grains in India M
W
M
R
W
• Rice- West Bengal, Uttar Pradesh, P W R
P
Punjab, Bihar, Tamil Nadu,
W M R
Chhattisgarh, Odisha. P
R
• Wheat-Uttar Pradesh, Madhya R
Pradesh, Punjab, Haryana, M P Legend
Rajasthan. R-Rice
W-Wheat
• Maize- Karnataka, Madhya Pradesh, M
M-Maize
Maharashtra, Rajasthan, Uttar P-Pulses
P
Pradesh.
• Pulses- Madhya Pradesh, R
Maharashtra, Rajasthan, Uttar
Pradesh, Karnataka.
State-wise
Production of Food
grains in India
• Sugarcane- Punjab, Uttar Pradesh,
Odisha, Maharashtra, Karnataka, Tamil
Nadu.
• Cotton- Gujarat, Maharashtra, Madhya
Pradesh, Andhra Pradesh.
• Jute- Bihar, West Bengal.
• Tea- Kerala, Tamil Nadu, Sikkim.
• Coffee- Karnataka, Kerala
TRANSFORMATION
OF CROP
INTO
AGRO-BASED
INDUSTRIES
What Are Agro-Based Industries?
agricultural raw materials into valuable
finished products
agriculture and allied sector ( include agrobased industries)
others
18% Importance in the economy
• Employment Generation.
• Income for Farmers.
• Rural Development.
• Value Addition.
82%
• Reduction of Post-Harvest Losses.
Contribution in Indian GDP • Sustainable Development etc.
( Ministry of Statistics & Programme implementation ; FY 2023-24)
Types 1.Agro
Produce
1.Agro
Produce
of Processing
Units
Manufacturi
ng Units
Agro-Based
Industries
1.Agro Agro Input
Service Manufacturing
Centres Units
Agro Produce Processing Units
Deals with the processing and storage of
agriculturally based raw materials.
Example :pulses and rice processing mills.
Agro-Produce Manufacturing Units
Focuses on the production of raw materials. After
production, the final product is entirely distinct from
the raw material that was used.
Example : Food Industry and Textile Industry.
Agro-input manufacturing facilities
The goods produced in this sector are utilized as
inputs to boost agricultural output.
Example: pesticides, fertilizers, and tools.
Agro Service Centers
All farm-related equipment is repaired and serviced at
these service facilities.
Example: the servicing and repairing of farming
equipment like tractors, and diesel engines.
INSTITUTIONAL ARRANGEMENTS FOR PROMOTION
OF AGRO BASED
INDUSTRIES
• Ministry of Agriculture
• Khadi and village industries board
• Agro-industries Development Corporation
• Director General of Trade and Development
• Small Industry Development Organization
• Ministry of Food Processing Industries
Perishable Nature Small Land Holding
of Products
PROBLEM
FACED BY
AGRO BASED
Competition INDUSTRIES Variability
IN INDIA
Limited Knowledge Seasonal Nature
PROBLEMS
IN
AGRIBUSINESS
Infrastructure Issues in Agribusiness
• Poor Rural Roads: Farm-to-market access
hinders.
• Inadequate Cold Storage: Post-harvest
losses rise.
• Limited Warehousing: Grain storage
bottlenecked.
• Inefficient Irrigation: Crop yields
impacted.
• Power Supply Issues: Affects processing
operations.
• High Transportation Costs: Inflates
production costs.
Budget 2024-25: Compensation for crop losses continues to be a distant
dream for Indian farmers
According to a report published by the Central Institute of Post Harvest Engineering and Technology (CIPHET), Indi
a recorded annual post-harvest losses amounting to Rs 92,650
Input Supply Challenges
• High Seed Costs: Burdening small
farmers.
• Fertilizer Shortages: Affects crop
production.
• Adulterated Inputs: Lower crop
yields.
• Credit Access Issues: Limited
purchasing power.
• Delayed Subsidies: Hurts input
availability.
• Soil Degradation: Requires better
management.
Fuel, Food, and Fertilizer: The Interwoven Impacts
of the Russia-Ukraine War
Technology Gaps in Production Processing
Agribusiness Problems
• Low Mechanization & • Limited Infrastructure: Few
Adoption: Reduces efficiency, units, increased waste.
low innovation impact. • Inefficient Supply Chains:
• Digital Divide & Transfer: Delays, quality control issues.
Limits tech access, lagging • High Costs & Labor Shortage:
knowledge. Narrow margins, reduced
• Outdated Techniques & efficiency.
Precision: Low productivity,
resource wastage.
Marketing Issues Food Security Challenges
• Market Access Limited: Farmers
struggle to sell. • Rising Prices: Food affordability
• Middleman Exploitation: Unfair drops.
pricing for farmers. • Food Shortages: Limited supply
• Perishable Produce: Increases food impacts availability.
wastage. • Malnutrition & Wastage: Health
issues, wasted resources.
Friends’ Zero-Commission Online Market H
elps Farmers Double Their Income Minus
Middlemen
Food security
Food security is defined by the Food and Agriculture Organization (FAO) of the United
Nations as “a situation that exists when all people, at all times, have physical, social
and economic access to sufficient, safe and nutritious food that meets their dietary
needs and food preferences for an active and healthy life.
