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Indian domestic demand of farm products to reach USD 299 billion by 2017-18

Farm mechanization, increasing usage of agrochemicals, improving irrigation techniques, better seeds and easy availability of credit are expected to be the catalysts in driving the Indian farming market in the coming years. Research firm IMARC Group expects the total domestic demand of farm products to reach INR 14,929 Billion (USD 299 Billion) by 2017-18, according to its latest report titled “Indian Agriculture Market Report & Forecast: 2012-2017”. The report which has done a comprehensive analysis on the current and future scenario of the Indian farming market expects this market to experience double digit growth rates during 2011-12 - 2017-18.

According to an analyst at IMARC Group, “Easy availability of credit coupled with the emergence of contract farming is creating a positive impact on the output, profitability, yield and quality of the farm produce. Some important developments that have taken place in this sector include a strong increase in the penetration of organized lending (institutional finance), Kisan credit cards and microfinance in India. As a result of these developments, credit for various agricultural activities such as buying land, fertilizers, agricultural equipments, etc is now easily available to farmers”.

The report found that India currently ranks second in terms of farm output with statistics suggesting that the country is currently the world's largest producer of many fresh fruits and vegetables, major spices, various fibrous crops such as jute and several staples such as millets and castor oil seed. The country also represented the second largest producer of wheat and rice, the world's major food staples. India, in fact, ranked within the world's five largest producers of over 80% of agricultural produce items, including many cash crops such as coffee and cotton. The report defined the farming market to be composed of fruits, vegetables, cereals, plantation crops, spices and pulses. According to the report, plantation crops represented the most popular crop in terms of consumption volume. Plantation crops were followed by cereals and vegetables. In terms of consumption value, however, cereals represented the most popular segment followed by fruits and vegetables.

IMARC’s new report entitled “Indian Agriculture Market Report & Forecast: 2012-2017” provides an analytical and statistical insight into the agriculture industry along with its various segments and sub-segments. The study that has been undertaken using both desk-based and qualitative primary research has analyzed various aspects and provides a comprehensive understanding of the Indian agriculture market. The report can serve as an excellent guide for investors, researchers, consultants, marketing strategists, and all those who are looking to foray into the Indian agriculture market in some form or the other.

by S. C.
30 november 2012, World News > Asia