February 4, 2023

India has an economy based on agriculture, having agriculture accounting for quarter of the labour force with available land accounting for even more than 54 percent of the country’s territory. India ranks among some of the world’s top of the heap of commodity total production of rice, wheat, cotton, sugar, horticulture, and dairy. Agriculture plus associated industries like as timber and fisheries provide 19.9 percent of the country’s GDP. As a result, the agriculture commodity price in india and the agricultural sector as a whole is vital to Indian commerce, governance, and lifestyle.

Indian crop yields for basic essentials is heavily dependent upon rainfall (seasonal rainfall), and farmland yields are usually lower than national median. Several more variables contribute to reduced efficiency, including insufficient farm worker learning and skills, heavy government interference, an inefficient food distribution system, poor infrastructure (which results in post-harvest losses of up to 40% for certain products), erratic rainfall, small land holdings sizes (2.7 acres/1.08 hectares and shrinking), and household agro – based support programmes and subsidisation that misrepresent price signals and impede incentive to invest.

The agrarian industry is gradually changing away from conventional farmland and toward landscaping and livestock farming (poultry, dairy, and fishing), from conventionally marketplaces to agriculture commodity market place online. As the population urbanises, earnings grow, and consumer patterns change, there is an increase in demand for raw and processed goods of all sorts. The development of an effective cold storage system from “farm to fork” would help reduce agricultural production deterioration while also assisting farmers in capturing value as goods keep quality and deliver enhanced advantages to customers.

Customer food production, headed by tree nuts and fresh fruits, are one of the fastest increasing areas of foreign agricultural commodities, reaching $5.14 billion in 2020. Because of a rising middle class, the millenials, wealthy individuals, private label imports, contemporary independent retailers, E-Commerce merchants, and leading indicator restaurants, the market for imported goods has risen significantly.

Foreign nuts and berries flow into conventional sales outlets in India, with just an average 90% of foreign fresh fruit sold in wayside booths and outdoor marketplaces. Imported packaged and ready-to-eat foods can be found at gourmet grocery shops, imported foods sections of bigger store layouts, and hundreds of tiny local businesses (kirana stores). While prospects for imported food are expanding in the hotels, dining, and institutions (HRI) and food manufacturing sectors, the Indian market is still relatively limited owing to excessive tariffs, persistent import bans, and fierce rivalry from the native industry.

The online grocery retailing sector in India is expected to be worth $500 billion. Existing trade forms such as neighbourhood shops or kirana (mom and pop) businesses predominate this retail sector, accounting for around 88 percent of the overall market sales. The share of the market held by organized retail structures such as supermarkets and hypermarkets, as well as E-Commerce shops, is predicted to grow substantially over the next five years as it meets customers’ changing requirements.

This year would have seen significant consolidation in the retail and e-commerce sectors via cooperative agreements and mergers. The COVID-19 and subsequent lockdown increased India’s e-retail food business by 80 percent to $2.7 billion in 2020. Due to increased internet access and growing consumer desire for ease, affordability, security, simplicity of financing, and product complexity, the industry is likely to develop substantially over the next several years. Consumer-oriented items, particularly tree nuts, fruits, and packaged/processed meals, offer an opportunity for US exporters.