Agriculture in India is being redefined with emerging trends that are giving it the contours of a lucrative business. Farmers association, marketing associations and corporatization of agriculture in India means that the transition of the sector from small farm based unit to modern corporatized Agri Business units is complete.

1. Emerging Trends inEmerging Trends in
Agriculture Sector in IndiaAgriculture Sector in India
Sukant Senapaty
Bhubaneswar

2. IntroductionIntroduction
 India is an Agrarian economy with
around 60% Population dependent on
agriculture for Living.
Post Independence India faced with the
challenge of scanty Production
 Green revolution, White Revolution,
Pink revolution and Blue revolution
ensured that India leads in many Food
Items today.

3. Today the average agriculture sector growth
in India is impressive at around 4.7% for the
last three years.
 India leads in the world in the production of
food items like
Milk Papaya Fruits
Pulses Millets Chilies
Mangoes Jutes Ginger
It is the second largest producer of the following
food items in the world
Wheat Rice Sugarcane
Groundnuts Onions Potatoes
Tea Goat meat Gourds
· Data based on statistics from the FAO for the year 2009.

4. Shifting Paradigms in Agriculture Sector inShifting Paradigms in Agriculture Sector in
IndiaIndia
Rising urban population
 The number of people living in the urban
clusters has increased from 70 million in 1991 to
108 millions in the year 2001.
The Urban population comes with a huge
demand for food and food products and equally
and a proportionate buying power.
Urban population has facilitated the spawning
processed food market as well as the growth of
organized retail.

5. Shrinking Farm Size
 Land under cultivation in India has remained at
140 million hectares since 40 years while the
number of farmers has increased from 7 crore to
14 crore.
Shrinking farm Sizes decreases farmers capacity
to invest in land and get favorable outputs.
 This has led farmers to leave the farms untilled
and seek employment elsewhere

6. Restructuring Farms & Farming
Practices
Mixed Farming : It involves agriculture with
livestock production . Mixed farming is the best
answer to shrinking farm .
Horticulture : Apart from staple crops like rice
and wheat, farmers are shifting towards
horticulture in a big way.

7. Emerging Trends in AgricultureEmerging Trends in Agriculture
SectorSector
Farm – Market Linkage
 Linking farms to market through farmer’s
association and marketing Federation is an
aspect that is picking up fast.
 Traditional linkage like wholesalers are being
removed in the process.
 India has today more than 70 cities with more
than 1 million population.
 Marketing bodies like GCCMF have been
phenomenally successful marketing produces
like Amul

9. Emergence of Corporate
 Corporate like ITC, Mahindra,Cargill are
actively in the agri-sector.
 With this there has been a shift from the
demand driven supply chain to a supply driven
chain.
 Roles of mandis is getting minimized
 This has led to the rise of contarct farming
which is practiced today under three categories
 Market Specification contract
 Production- Management contract
 Resource Providing Contract

10. Rise of Organized Retail
 Retailing giants like Reliance fresh , Spencers
etc have redefined the face of Indian Agri
Sector.
 Indian food retail industry has grown from
$306.1 billion in 2009 to $443.7 billion in
2014, a growth of 45%
 Benefits that have accrued to farmers include:
 Better infrastructure & less post-harvest loss
 Improved technology & logistics
 Elimination of middlemen

11. Emergence of Rural Business Hubs
 Rural Business Hubs ( RBH) help in developing
relationship between rural producers and
business partners with active facilitation by the
Panchayats.
 Its aim include
 Linking rural producers with the wide market
through a professional marketing partners.
 Based on economic activity not charity.
 Any economic activity like
agriculture/horticulture/ handicraft can be
taken up. Located in Rural areas.

12.  RBHS are slowly becoming face of Business
houses in villages.
 ITC ( Chiupal Sagar) , Tata ( Kisan Sansar),
Future Group (Sansar) are some prominient
RBH
 vast array of services are provided to farmers
in RBH and include buy back arrangement of
produce,providing agri input services and some
RBH act as retailers to farmers as well.

13. Implications Of Emerging TrendsImplications Of Emerging Trends
Agriculture sector is witnessing a major
reshuffle with factors like urbanization and
corporatization , opening new vistas of
opportunity.
Traditional farmers are reinventing themselves
with chnaging times and opting for viable modes
of farming like horticulture and mixed farming .
Role of marketing bodies and farmer
associations in collecting and marketing farm
produce is going to get bigger in the future.

14. Thank YouThank You
Sukant Senapaty
Bhubaneswar