Outlook 2025 | Food & Agriculture sector will make new records in 2025
Digitisation and technology usage are strengthening the sector's fundamentals: Digitisation in agriculture is fast picking up across the value chain, generating vast amounts of data regarding transactions, user patterns, consumption and buying behaviour. It is now addressing fundamental issues in agriculture, including tracking payments, identifying sources of food items, yield estimation, prediction of insect attacks etc. While many private sector companies operating in the agri space are fast adopting the technology, Chhattisgarh proved to be a novel state by becoming the first state to implement blockchain for the distribution of seeds to its farmers. With technology proving to be an asset for state governments and farmers, we expect to see more unique initiatives with respect to the use of technology in 2025 in areas of livestock, crops, fisheries, fertilizers etc.
Organic Agriculture set to rise further: As per the National Program for Organic Production (NPOP), in 2023, just over 59 lakh ha of land[1] under cultivation was categorized under certified organic. With the organic food product market set to grow at 37% CAGR, coupled with increased consumer awareness of food quality and better premiums on organic products, there would likely be greater adoption of organic cultivation at the farmer level.
Food processing industry to increase its output: Over the last two decades, food processing companies have been growing in India on account of the growing consumption and the Government's focus on creating an enabling infrastructure. With India now seen as a global supplier of food and commodities, the trend is likely to grow further in the coming year. Export bans for commodities such as rice proved to be temporary disruptions.
Exports are expected to see a rise: India has registered US$52.5bn in exports in 2022-23 this reduced to US$48.14bn in 2023-24[2]. Going forward, there is a huge potential when it comes to agricultural produce and its subsequent export. Certain products such as marine goods, basmati rice, essential spices, meat, and sugar have emerged as top contenders for export. Despite the current global circumstances, exports are likely to grow in the coming years. Enhanced infrastructure investments and a heightened emphasis on the quality of agricultural output, boosting the competitiveness of agro commodities in the export market, would be the key growth drivers.
That said, according to the latest economic survey, the investment in agriculture research and enabling policies have contributed substantially to food security. It is estimated that for every rupee invested in agricultural research (including education), there is a payoff of ₹13.85. In 2022-23, ₹19.65 Thousand Crore was spent on agriculture research[3].
The year 2025 offers us a chance to prioritize research aimed at addressing the issues surrounding low productivity. Additionally, it is crucial to establish a robust mechanism for commercializing these products made after some research.
Overall, increasing private sector investments across segments can greatly benefit the industry. Given the numerous growth opportunities that the year holds, improving yields can play a pivotal role in achieving the goal of enhancing profits for the sector.
[1]https://pib.gov.in/PressReleasePage.aspx?PRID=2034943
[2] India: Leading Agricultural Product Exporters | Discover India's Agri-Export Growth