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By Dr Minshad Ansari, CEO and Founder, Bionema Group, Wales, United Kingdom

The agricultural landscape is profoundly transforming as the global drive toward sustainability accelerates. The sector’s projected growth to a staggering $1.2 trillion by 2034 signals immense economic potential and underscores a significant shift toward environmentally responsible farming practices. With the agricultural biologicals market forecasted to surge from $16.7 billion in 2024 to $31.8 billion by 2029 (Markets and Markets, 2024), alongside significant expansions in agrochemicals and organic food markets, we are on the brink of a revolution in how food is grown, protected, and consumed.

Unprecedented Growth in Agricultural Biologicals

The global agricultural biological market is expected to grow at a compound annual growth rate (CAGR) of 13.5 per cent, reaching $31.8 billion by 2029. Agricultural biologicals—including biopesticides, biofertilisers, and biostimulants—are essential to sustainable farming practices. These products enhance crop protection, improve nutrient efficiency, and restore soil health while avoiding the environmental damage associated with synthetic chemicals.

Several key factors are driving this shift:

•Consumer Demand for Organic Produce: Globally, consumers increasingly seek natural, chemical-free products, pushing farmers to adopt biological alternatives.

•Stricter Regulations: Governments in Europe, North America, and other regions are implementing stricter controls on chemical inputs, speeding up the transition to biologicals.

•Environmental Awareness: The adverse effects of chemical-intensive farming on ecosystems are becoming more apparent. Biologicals offer a sustainable solution with minimal environmental harm.

Regional Drivers of Growth

The Asia-Pacific region is set to be a significant growth engine for agricultural biologicals. Countries like India and China, with vast agricultural sectors and growing populations, are increasingly focusing on sustainable farming practices. Thanks to its stringent regulatory environment, Europe continues to play a leading role, mainly through the EU’s Farm to Fork strategy, which aims for a 50 per cent reduction in pesticide use by 2030.

The U.S. market is expanding rapidly in North America due to increased investment in biological research and innovation. Latin America, especially Brazil, is emerging as a critical player in biologicals, driven by its leadership in organic farming and alternatives to agrochemicals.

Agrochemicals: A Market in Transition

Despite the rise of biologicals, the agrochemicals market is expected to grow from $365.6 billion in 2024 to $491.69 billion by 2032 (Market Research Future, 2024). However, the narrative surrounding agrochemicals is shifting. Farmers are increasingly adopting integrated pest management (IPM) strategies that combine biologicals with synthetic chemicals, balancing yield targets with environmental sustainability.

Agrochemicals will still play a role in global food production, but their use will increasingly be complemented by biological solutions to reduce environmental impact. This hybrid approach is critical in regions where fully transitioning to biological methods is not feasible due to scale, cost, or other constraints.

Organic Food: A Powerhouse Market

The global organic food market is forecasted to rise from $228.35 billion in 2024 to $658.38 billion by 2034 (Precedence Research, 2024). This reflects a significant shift in consumer preferences toward healthier, environmentally friendly food choices.

Organic farming emphasises sustainability, biodiversity, and soil health, making agricultural biologicals a natural fit for this market. Biopesticides, biofertilisers, and biostimulants are at the core of organic farming systems, replacing chemical inputs with natural solutions aligned with organic certification principles. Countries like Germany, the U.S., and France lead this trend, with robust organic farming sectors and consumers willing to pay premiums for organic products.

Regulatory frameworks shaping the market

The regulatory landscape is pivotal to the growth of agricultural biologicals. In the European Union, the regulatory framework has become increasingly favourable for biologicals, particularly with the implementation of the European Green Deal and the Farm to Fork strategy, which promote sustainable food systems and aim to reduce pesticide use significantly. The U.S. Environmental Protection Agency (EPA) has also streamlined the biopesticide registration process, encouraging faster adoption.

In Brazil, one of the world’s largest agricultural markets, regulatory reforms have accelerated the approval of biological products. The country’s leadership in organic farming and favourable policy environment make it a key player in driving biological adoption in Latin America. Similarly, India has introduced initiatives through the Indian Council of Agricultural Research (ICAR) and its Farm Science Centres (KVKs) network to promote biological products.

However, challenges remain, particularly in harmonising regulations across regions. Global regulatory collaboration is necessary to establish consistent standards, reduce registration bottlenecks, and foster innovation.

Key trends driving growth

1.Innovations in Microbial Technology: Microbial research advances enable the development of highly effective biological products that target specific pests, improve nutrient uptake, and enhance plant resilience. Innovations in formulation technologies, such as encapsulation and controlled-release systems, are improving the stability and efficacy of biologicals, making them more viable for large-scale farming.

2.Consumer Awareness and Organic Certification: As consumers become more conscious of the environmental impact of their food choices, demand for organic and sustainably produced food is rising. This shift drives the need for biological inputs that meet organic certification standards, further boosting the adoption of biological solutions.

3.Climate-Smart Agriculture: Agriculture significantly contributes to greenhouse gas emissions. Agricultural biologicals, particularly soil microbes, play a crucial role in mitigating climate change by enhancing carbon sequestration, improving soil health, and reducing the carbon footprint of farming practices.

Despite rapid growth, the agricultural biologicals market faces several challenges:

•Regulatory Hurdles: Fragmented regulatory environments across regions slow the approval process for new biological products. Harmonising regulations will be vital in accelerating innovation and adoption.

•Farmer Education and Confidence: Many farmers remain sceptical of biological products due to a lack of knowledge or previous experiences with ineffective or ingenuine products. Education and field demonstrations are essential for building farmer confidence and ensuring widespread adoption.

• Supply Chain and Scalability: The infrastructure needed to produce, store, and distribute biological products at scale is still developing. Investments in supply chain logistics, cold storage, and distribution networks will be critical to meeting future demand.

The Future of Sustainable Agriculture

The $1.2 trillion surge in the agricultural biologicals, agrochemicals, and organic food markets reflects more than just economic growth—it signals a global commitment to transforming agriculture into a sustainable, eco-friendly industry. As the world grapples with climate change, food security, and environmental degradation, the rise of agricultural biologicals offers a pathway to a healthier and more sustainable future.

Innovations in microbial technology, growing consumer demand for organic products, and favourable regulatory frameworks are positioning agricultural biologicals as a cornerstone of global food production. By investing in these sustainable solutions today, we are laying the foundation for a future where agriculture feeds the world and preserves the planet for generations to come.

Agriculture is no longer just about yields; it’s about balancing productivity with responsibility. As the agricultural biological sector evolves, it is poised to create a future where farming is both economically viable and ecologically sound.

By Dr Minshad Ansari, CEO and Founder,

 By Dr Anupam Barik, Former Additional Commissioner (Oilseeds), Department of Agriculture & Farmers Welfare, Government of India.

Around 50 per cent of the products that we find in our neighbourhood shops include palm oil. These products range from cooking oil to personal care items. Palm oil is a modern-day marvel. It is widely used in a broad variety of items, both culinary and non-food, all over the world because of its versatility and affordability, which contribute to its appeal.

India imports over 9 million tonnes of palm oil per year, making it one of the top users of palm oil in the world, according to reports. The use of edible oil in India increased by 24 per cent during the fiscal year 2022-23, despite the fact that India’s import bill for edible oil reached Rs 1.57 trillion by October 2022. The country is therefore susceptible to variations in international markets, geopolitical conflicts, and shifts in global demand as a result of these circumstances. There is a direct correlation between the fluctuations in palm oil prices and the prices of these consumer items.

Palm oil accounts for around 38 per cent of our total consumption of edible oils. Acquiring self-sufficiency in domestic production can help us get closer to lessening our dependency on goods imported from other countries. The initiation of the National Mission on Edible Oils-Oil Palm (NMEO-OP) by the Indian government in the year 2021 is a significant and encouraging move in this regard. The expansion of oil palm cultivation to a total of 1.67 million hectares by 2029-30 and 1 million hectares by 2025-26 is the objective of this proposal. The objective of the mission is to increase India’s palm oil production to 11 lakh metric tonnes by 2025-26 and then to 28 lakh tonnes by 2028-29. This would be accomplished via an investment of more than $ 1 billion (Rs 11,040 crore).

It is anticipated that the Andaman and Nicobar Islands, along with seven states in the northeastern region, will be the primary locations for the cultivation that falls under the NMEO-OP. Additionally, the government has provided financial assistance for the building of oil palm processing mills, particularly in places that are hilly and located in the northeast. Viability Price (VP) is the name given to the price guarantee that the government of India has provided to oil palm growers for the first time. This guarantee is for the FFBs, which are also known as fresh fruit bunches.

No viable alternative to palm oil

In terms of its yield and the variety of distinctive qualities it possesses, there is really no viable alternative to palm oil, with the exception of, of course, sustainable palm oil. The European Palm Oil Alliance reports that palm oil accounts for 6.6 per cent of the land that is farmed for oils and fats, while it is responsible for 38.7 per cent of the total output. Making the switch to sustainable palm oil is a more effective solution. Furthermore, if companies were to move to alternative vegetable oils like rapeseed, olive oil, and soybean, it would possibly imply nine times as much cropland, which would contribute to the loss of biodiversity and possible deforestation. India has the ability to link itself with international sustainability standards, such as the Malaysian Sustainable Palm Oil Accreditation, to extend its efforts to promote sustainability.

Additionally, there is a growing awareness among consumers as well as a preference for products that are sourced in an ethical manner, which is where sustainable palm oil comes into play. Because of this need, fast-moving consumer goods (FMCG) companies may be encouraged to implement environmentally responsible business practices and establish a price environment that is stable. It is essential to cultivate palm oil in a sustainable manner since doing so helps to limit the amount of environmental degradation, which in turn lowers the expenditures that will be incurred in the future for the control of environmental damage.

In comparison to sugarcane and rice, palm oil requires far less water, which enables farmers to generate a consistent income. Additionally, it requires less energy, fertilisers, and pesticides to be used. It is advised that palm oil be grown on only cultivable land in India, and not on forest territory. Rice is being replaced by palm oil in areas that are suited for its development. It is a well-known fact that palm oil is an exceptionally productive crop. It has the capacity to produce between four and five tonnes of oil per hectare per year, which is more than any other vegetable oil production. In the event that manufacturers were to transition to alternative vegetable oils such as soybean, olive, or rapeseed oil, the costs would skyrocket, resulting in a large increase in the cost of things that are commonly used.

To read more click on:https://agrospectrumindia.com/e-magazine

 By Dr Anupam Barik, Former Additional Commissioner

 By Bilal Khimji, Co-Founder, TradeBridge

The global B2B e-commerce in the agriculture market was valued at $6.90 billion in 2021 and is expected to grow at a CAGR of 6.4 per cent from 2022 to 2030. Polaris Market Research & Consulting, Inc noted that factors such as increased penetration of the internet along with the growing usage of mobile phones and the benefits of these platforms are driving the B2B e-commerce in agriculture market growth. According to Tracxn Technologies report there are over 712 companies in India in B2B Farm Produce E-Commerce space as on September 12, 2024. Over 1389 mandis of 23 states and four union territories have been integrated into the National Agriculture Market (eNAM), a platform that was launched in 2016 and has over 1.77 crore registered farmers, 2.53 lakh registered traders and 3510 FPOs onboarded as on February 11, 2024.

The agricultural sector is the backbone of the global economy, contributing significantly to food security, employment, and overall economic growth. According to the Food and Agriculture Organization (FAO), the global food market is expected to reach a staggering $8 trillion by 2030. This immense growth presents a wealth of opportunities, particularly for trade, supply-chain, Agri-Tech and B2B trade platforms. While there are a growing number of players in the market for perishable commodities, no one has been able to crack the code for non-perishable agricultural commodities yet.

Challenge: Fragmented Mandis Hinder Efficiency

India’s traditional agricultural market relies on a network of mandis, which while crucial, suffer from inefficiencies:

Multiple Intermediaries: Layers of middlemen chip away at farmer profits and inflate consumer prices.

Limited Transparency: Opaque pricing leaves farmers vulnerable to exploitation.

Restricted Market Reach: Local mandis limit farmers’ access to broader markets and potentially better pricing.

Poor Infrastructure: Lack of proper storage facilities leads to spoilage and reduces profits.

Limited Information Access: Farmers lack real-time data on market trends, hindering informed decision-making.

These inefficiencies have a domino effect.

Reduced Farmer Income: Intermediary commissions deplete profits, discouraging investment in better practices and hindering overall agricultural productivity.

Higher Consumer Prices: Supply chain inefficiencies lead to higher costs for fresh produce.

Post-Harvest Losses: Inadequate infrastructure and handling practices cause significant losses, impacting food security.

Opportunity: Non-Perishables and B2B Platforms

Unlike perishable goods, non-perishables like dried fruits, spices, cereals, and oilseeds offer greater flexibility in storage and transportation, opening doors for international trade. B2B platforms can revolutionise this market by:

Streamlining Trade: Replacing complex networks with direct connections between buyers and sellers increases transparency and simplifies transactions.

Enhanced Market Access: Platforms connect businesses with a wider pool of potential partners, both locally and globally, empowering small and medium-sized enterprises (SMEs) to compete internationally.

Improved Price Discovery: By aggregating data on supply, demand, and market trends, platforms provide valuable insights for both buyers and sellers, leading to fairer pricing for farmers and competitive prices for buyers.

Reduced Transaction Costs: Eliminating unnecessary intermediaries and automating processes leads to significant cost reductions for businesses, boosting profitability for all parties.

Increased Farmer Empowerment: By removing middlemen, B2B platforms allow farmers to sell at their own pricing, increasing their profit margins.

Power of Technology: Transforming Supply Chains

Technology is fueling the rise of B2B trade platforms. Some key advancements include:

Blockchain Technology: Ensures secure and transparent tracking of products throughout the supply chain, fostering trust, reducing fraud, and enabling efficient logistics management.

Big Data Analytics: Provides valuable insights into market trends, consumer preferences, and production patterns, enabling better demand forecasting, inventory management, and risk mitigation strategies.

Artificial Intelligence (AI): Automates tasks like order processing, logistics planning, and credit risk assessment, increasing efficiency, streamlining processes, and minimising human error.

Beyond Technology: Importance of Distribution

Effective distribution is crucial. A robust network of warehouses, transportation facilities, and logistics providers ensures timely delivery of non-perishable goods. Platforms that can seamlessly integrate with existing networks or develop their own efficient systems will have a significant competitive edge.

Niche of Efficiency: Perishables vs Non-Perishables

B2B platforms need to differentiate between perishables and non-perishables. Perishables, like fruits and vegetables, have short shelf lives and require specialised cold-chain management. Non-perishables require a different approach. B2B platforms focusing on non-perishables can carve out a niche by offering:

Standardised Quality Assessments: Ensure consistent product quality for buyers.

Flexible Warehousing Options: Cater to the specific storage needs of various non-perishable commodities.

Efficient Transportation Solutions: Designed for longer shelf-life products.

Why the Lag?

Despite its potential, the non-perishable B2B trade space remains underutilised. Fragmented supply chains and an opaque environment due to intermediaries hinder direct interaction between buyers and sellers.

To read more click on:https://agrospectrumindia.com/e-magazine

 By Bilal Khimji, Co-Founder, TradeBridgeThe global B2B

Co-authored by Amit Patjoshi, CEO, Palladium India and Biswajit Behera, Associate Director, Palladium India

India’s export economy has great potential in the floriculture sector, and FPOs are leading the way in harnessing this potential. India’s floriculture FPOs can have a significant impact on increasing exports and empowering smallholder farmers, particularly women in rural areas, by embracing climate-smart practices, improving infrastructure, and strengthening market connections.

Floriculture is a rapidly emerging sector in India, commonly referred to as a “sunrise sector” due to its immense potential for income generation and employment creation, especially for small and marginal farmers, many of whom are women. The Indian floriculture market is projected to reach a volume of approximately $5.9 billion by 2030, growing at a compounded annual growth rate (CAGR) of around 7-8 per cent. The sector primarily deals with two types of flowers: cut flowers and loose flowers, with a significant portion of sales occurring through organised retail.

India’s export performance in floriculture has been commendable, though there is still much-untapped potential. In 2023, India exported around 19,600 metric tonnes of floriculture products, worth approximately $86 million. Major export destinations include the United States, UAE, Germany, Canada, Japan, and Malaysia. However, despite the promising figures, the volume of floriculture exports remains modest in comparison to the country’s production capacity.

Geographically, Andhra Pradesh and Tamil Nadu lead the country’s floriculture production, accounting for more than 35 per cent of total production. Other key states include Karnataka, West Bengal, Uttar Pradesh, Gujarat, Maharashtra, and Odisha. These latter states not only produce significant quantities of flowers but also have the potential to serve international markets if supported by improved infrastructure, value chains, and export-oriented business models.

Odisha: Strengthening FPOs Value Chain

Odisha has been an emerging player in India’s floriculture sector, with key districts such as Sambalpur, Rayagada, Ganjam, Puri, Bhadrak, and Angul being major centres for flower cultivation. Farmers in these districts primarily grow marigolds and roses, catering to the local market. However, the state’s floriculture potential extends beyond domestic sales, particularly through the involvement of Farmer Producer Organizations (FPOs).

FPOs have become essential in strengthening the floriculture value chain in Odisha. The first floriculture FPO in the state was established in 2021 by Palladium, in collaboration with NABARD. This initiative trained around 650 women farmers in enhanced production techniques, post-harvest practices, and business planning to cater to local market demands. However, to meet export market requirements, significant challenges remain, particularly related to climate variability, market fluctuations, and a lack of infrastructure.

The floriculture value chain in Odisha involves multiple stakeholders, including smallholder farmers, FPOs, research institutions, and government agencies. FPOs play a critical role by aggregating the produce of small and marginal farmers, helping them achieve economies of scale, access to markets, and technical support. By working collectively, farmers under FPOs can reduce production costs, adopt advanced technologies for post-harvest management, processing and value-addition in floriculture value chains and negotiate better prices in both local and international markets. Furthermore, FPOs can facilitate partnerships with research institutes to drive innovation and improve yields, while also ensuring that sustainable practices are adopted to combat climate-related challenges.

Business models through FPOs

The business model for floriculture exports through FPOs hinges on the role of FPOs, which serve as the link between small farmers and the broader market. The aggregation of products through FPOs ensures that smallholder farmers, who individually may lack the resources or scale to export, can still participate in international markets.

The primary steps in the floriculture export business model include:

1. Production: FPOs provide access to high-quality seeds, fertilisers, and technical knowledge to improve yield and ensure the quality of flowers meets export standards.

2. Aggregation and Processing: FPOs collect the flowers from member farmers and handle post-harvest processing such as grading, packaging, and storage. This ensures that the flowers are of a uniform standard, which is critical for export.

3. Logistics: FPOs manage the transportation of flowers to international markets. In the case of cut flowers, this often involves specialised cold storage and transportation to maintain freshness.

4. Marketing and Export: FPOs, in collaboration with export agencies, identify international markets, negotiate prices, and handle the regulatory requirements of different countries.

FPOs also play a crucial role in ensuring that farmers receive fair prices for their produce by eliminating intermediaries and improving their bargaining power. In the case of Odisha, where floriculture is still in its developmental phase, the business model emphasises capacity building, market linkages, and scientific research to enhance production and ensure that smallholder farmers can access international markets.

Recently, Palladium has successfully facilitated an agreement between the Sabuja Sanatanpali Farmer Producer Company Limited and the Council of Scientific and Industrial Research (CSIR), National Botanical Research Institute, Lucknow. This partnership focuses on promoting scientific research in floriculture, including plant-environment interactions and biotechnological approaches for improving plant quality. Such collaborations are pivotal in helping FPOs adapt to climate challenges and improve production levels, ensuring the competitiveness of Odisha’s floriculture in export markets.

To read more click on: https://agrospectrumindia.com/e-magazine

Co-authored by Amit Patjoshi, CEO, Palladium India

India’s agricultural exports touched $48.9 billion in 2023-24, registering an 8 per cent decline from $53.2 billion in 2022-23. The drop in agricultural exports was mainly due to the export ban on wheat, rice, sugar and onions. Meanwhile, out of 24 principal commodities of the Agricultural and Processed Food Products Export Development Authority (APEDA) 17 have recorded positive growth during the period, which included fresh fruit, buffalo meat, processed vegetables, basmati rice and banana. APEDA contributes a significant 51 per cent of agri-exports. From its modest beginnings with annual exports of $0.6 billion in 1987-88, proactive interventions by the APEDA have taken agricultural exports to a remarkable figure of $26.7 billion in 2022-23. This journey of exponential growth is underscored by expanding the export basket to over 200 countries, showcasing a commendable Compound Annual Growth Rate (CAGR) of 12 per cent. To further increase India’s share in agri export in the global market, the government has identified 20 farm products whose global imports are over $405 billion for a focussed push in the coming years. The strategy entails an action plan for the next five years to capture 10 per cent of the world trade in the 20 shortlisted products. India can achieve this provided the government addresses the issues of the agriculture industry. 

On September 14, 2024, in a significant step to boost the export of basmati rice, a premier GI variety of rice of India, the Government of India decided to remove the floor price on the export of basmati rice. This decision was taken in response to ongoing trade concerns and adequate domestic availability of rice. The APEDA will closely monitor export contracts to prevent any non-realistic pricing of basmati rice and ensure transparency in export practices.

It may be noted that, in August 2023, a floor price of $1,200 per metric tonne (MT) was introduced as a temporary measure in response to rising domestic rice prices in the wake of tight domestic supply situation of rice and to curb any possible misclassification of non-basmati rice as basmati rice during exports, given the export prohibition on non-basmati white rice. Following representations from trade bodies and stakeholders, the government then rationalised the floor price to $950 per MT in October 2023.

Besides, to boost exports of onions, the government has decided to remove the Minimum Export Price (MEP) on onions and reduce the export duty from 40 to 20 per cent. This will increase onion exports, resulting in a rise in income for onion-producing farmers. The government has also decided to remove the MEP on basmati rice, enabling basmati rice-producing farmers to export and earn higher profits. Sharing this on ‘X’ (formerly Twitter) on September 14,  the Union Home Minister and Minister of Cooperation, Amit Shah, said that this will boost exports to ensure that farmers receive a fair price for their crops, allowing them to earn maximum value for their produce.

Hailing the government’s decision, Akshay Gupta, Head – Bulk Exports, KRBL Limited said, “We greatly welcome the government’s resolution to remove the MEP on basmati rice. The timing of this strategic move coincided favourably with the imminent harvest of the new crop. With the removal of MEP, Indian exporters now have the power to offer basmati rice at far more competitive rates on a global scale, seemingly primed to drive a huge surge in export volumes.”

He further said “With new crop sales and export orders set to be finalised, this decision provides greater clarity for importers worldwide regarding India’s policy direction. Moreover, this change is expected to benefit farmers by boosting income and price realisations, as increased demand in the short term is likely due to the competitive pricing from Indian exporters.”

Reacting to this announcement, Pankaj Khandelwal, President – Output business, AgroStar Group, said that the recent policy adjustments, such as removing the MEP on basmati rice and onions, will make Indian produce a lot more competitive in the global market and enable better price realisation for the farmer.

Khandelwal however maintained that India’s role as a major global food supplier continues to gain recognition, with its agricultural products being well-received in international markets. Consistent trade policies will enable global buyers to plan their supply chains more predictably, making India an attractive destination for sourcing fresh produce. For farmers, this consistency allows for better planning, as they can shift their focus toward growing export-quality crops, confident that there will be a reliable demand and fair pricing in global markets. In the medium term, it also encourages greater investment in supply chain capabilities across the value chain.

To read more click on : https://agrospectrumindia.com/e-magazine

India’s agricultural exports touched $48.9 billion in