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General Information - Agriculture


India is mainly an agricultural country. Agriculture accounts for approximately 33 percent of India's GDP and employs nearly 62 percent of the population. It accounts for 8.56 % of India’s exports. About 43 % of India's geographical area is used for agricultural activity. In the past, India had to import most of its food. But improved farming techniques and the using of irrigation and high-yield grains has greatly increased. In India, since most of the cropped area even now does not have any assured irrigation, the monsoon assumes a crucial role in influencing agricultural production.

India's agriculture exports (excluding tea, coffee, marine products and raw cotton) during 1994-95 was Rs 70,490 million. Important items of agricultural export are rice, cashewnuts, coffee, tea, horticulture and floriculture products etc.

Increasing Production

One of the main challenges facing India was producing enough food for the increasing population. As not more than the existing land is fit for cultivation, India has to strive to develop productivity on existing land. Over the past four decades, India more than tripled its food production. The high yeild varieties of wheat and rice in the mid-1960s led to this dramatic increase. Although 30 percent of this production growth (known as the Green Revolution) came from expanding farmland area, most of the increase since the late 1970s, has come from increased average yields. In other words, farmers using the new varieties of grain were growing more food on the same amount of land.

India has the world's largest cattle population (193 million), large numbers of sheep and goats, and more water buffalo and camels than any other country. This has placed heavy demands on the grazing lands. Both grasslands and forest areas suffer as a result.

Growth in milk and egg production also increased dramatically. Dairy and poultry enterprises now provide substantially higher financial returns per hectare than crop farming. Such enterprises create new jobs and bring about health and nutritional improvements.

Water: A Vital Resource

Increased use of irrigation has helped India increase average yields. About one third of the cropland in India is irrigated, but rainfed agriculture is central to the economy. Harvests and national prosperity have traditionally depended on a successful southwest monsoon, the source of about three fourths of India's annual rainfall. The timing and intensity of the monsoon varies from year to year. About one fourth of the cropland is prone to flooding.

Though irrigation is reliable source of water and helps increase productivity, it may also damage the soil making it less productive. The soil tends to become salinised when the water evaporates and leaves salt deposits. Sometimes irrigation leads to waterlogging of the soil lowering crop yields, and hastening the loss of soil nutrients. Irrigation also leads to loss of soil nutrients (such as zinc, copper, and iron) which plants need to grow. Soil degradation seriously affects agricultural production. About 210 million acres (85 million hectares) of India's farmland are affected.

Despite its great progress in increasing agricultural production, India's average yield of cereal crops is less than half that of China and the United States. However, production must be increased without destroying the basic resources of soil and water, if it is to be sustainable.

Improved irrigation techniques have the potential to increase food production. Improved farming techniques in areas that rely on rainfall also could improve yield. Improving the use of fertilizer, especially on rainfed land, also would help production. India is trying a variety of strategies, from sophisticated water management techniques to traditional farming practices.

Source: World Resources 1994-95.

Agricultural & Processed Food Products Export Development Authority
(Ministry of Commerce & Industry, Govt. of India)
NCUI Building 3, Siri Institutional Area, August Kranti Marg, New Delhi - 110 016
Phone : 91-11-26513204, 26514572, 26534186
Fax : 91-11-26526187
Email: headq@apeda.com

Areas of Interest : Animal Products, Cereals, Floriculture and Seeds, Fruits and Vegetables, Processed Fruits and Vegetables, Other Processed Food.

Some Relevant Links

National Agricultural Cooperative Marketing Fedration Of India Ltd. (NAFED)
NAFED House, Siddhartha Enclave Ring Road, Ashram Chowk, New Delhi-110014
Telephone EPABX : 011-26340019, 26341810
Fax : 091-11-26340261
www.nafed-india.com

One of the premier co-operative marketing organisation of the country, Nafed undertakes export of a wide range of agro-products. Export of Onion and Nigerseed are canalised through Nafed . It undertakes export of Cotton against the quota allocated by Government of India. In addition, it exports commodities such as Fresh Fruit and Vegetables; Oilseeds; Spices; Foodgrains; Pulses and Other Agro Products are undertaken to various destinations under Open General Licence.

Agro Advantage Maharashtra is a Government of Maharashtra event, organised in close collaboration with various associates. It aims at the agricultural and its allied industrial potential in terms of investment oppurtunities open to global investors.





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