Connect with:
Thursday / February 6. 2025

logo
mobile-logo
Home2025January
Acquaculture, Agribusiness, AgroPolicy, India, Live Stock, Trade

Country’s seafood exports have risen from Rs 46,662.85 crore in FY-20 to Rs 60523.89 crore in 2023-24, reflecting a growth of 29.70 per cent.

The Economic Survey highlights that in the fiscal year FY24, the value of agri-food exports, which includes processed food exports, reached USD 46.44 billion, constituting roughly 11.7 per cent of India’s total exports. Notably, the share of processed food exports within agri-food exports has risen from 14.9 per cent in FY18 to 23.4 per cent in FY24.

The Economic Survey conveys that the government has implemented several initiatives to enhance the fisheries sector’s production which include Pradhan Mantri Matsya Sampada Yojana (PMMSY) to boost aquaculture productivity and improve fisheries management, Fisheries and Aquaculture Infrastructure Development Fund (FIDF) to provide financial support for developing infrastructure in both marine and inland fisheries. Other initiatives include the establishment of fishing harbours and fish landing centres, the adoption of innovative production technologies such as cages, Recirculating Aquaculture Systems (RAS), bio flocs, pens, and raceways. Due to these initiatives, total fish production (both inland and marine) has surged to 184.02 lakh tonnes in FY 23, up from 95.79 lakh tonnes in FY14. Furthermore, India’s seafood exports have risen from Rs 46,662.85 crore in FY-20 to Rs 60523.89 crore in 2023-24, reflecting a growth of 29.70 per cent. Under the Pradhan Mantri Matsya Kisan Samridhi Sah-Yojana (PM-MKSSY), the National Fisheries Digital Platform (NFDP) successfully mobilized and registered 16.35 lakh fish producers, workers, vendors, and processors within a short timeframe of just four months.

Country’s seafood exports have risen from Rs

Agribusiness, AgroPolicy

The livestock sector alone represented 5.5 per cent of the total GVA, reflecting its dynamic growth trajectory, with a robust Compound Annual Growth Rate (CAGR) of 12.99 per cent.

Nirmala Sitharaman, Union Minister of Finance and Corporate Affairs tabled Economic Survey 2024-25, in the Parliament today. The Economic Survey states that Allied Sectors have become key drivers of agriculture growth. The livestock sector alone represented 5.5 per cent of the total GVA, reflecting its dynamic growth trajectory, with a robust Compound Annual Growth Rate (CAGR) of 12.99 per cent. The economic significance of this sector is clearly illustrated by its escalating output value, which reached an astounding 17.25 lakh crore rupees (equivalent to US$205.81 billion) in FY23. Among the various branches of livestock production, the milk industry stands out, generating over Rs11.16 lakh crore (US$133.16 billion) in revenue. Government has supported the sector through interventions which include the Rashtriya Gokul Mission for the development and conservation of indigenous bovine breeds, the Livestock Health and Disease Control Program to enhance the well-being of livestock, Multipurpose AI Technicians in Rural India (MAITRIs) to deliver breeding inputs to farmers’ doorstep. In the last 4 years, 38736 MAITRIs have been inducted under Rashtriya Gokul Mission.

The livestock sector alone represented 5.5 per

AgroPolicy, India

In recent years, the agriculture sector in India has shown robust growth, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges.

India’s agricultural sector has demonstrated remarkable resilience in recent years, marked by consistent growth rates, which can be largely attributed to various government initiatives to enhance productivity, promote crop diversification, and increase farmers’ income, states the Economic Survey 2024-25, tabled by Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman in the Parliament.

The Economic Survey highlights that the ‘Agriculture and Allied Activities’ sector has long been the backbone of the Indian economy, playing a vital role in national income and employment. In recent years, the agriculture sector in India has shown robust growth, averaging 5 per cent annually from FY17 to FY23, demonstrating resilience despite challenges. In the second quarter of the 2024-25 fiscal year, the agriculture sector recorded a growth rate of 3.5 per cent. The Gross Value Added (GVA) of agriculture and related sectors, have improved from 24.38 per cent in the fiscal year FY15 to an impressive 30.23 per cent by FY23. Consistent and stable growth of agriculture at around 5 per cent, with a 20 per cent share of overall GVA in the economy, will contribute 1 per cent growth to GVA.

In recent years, the agriculture sector in

Agribusiness

In a landmark achievement for farmer-led enterprises, three Farmer Producer Companies (FPCs) from Odisha were recognized at the prestigious Farmers Business Summit & Leadership Award 2025, organized by the Agricultural and Processed Food Products Export Development Authority (APEDA) in Gosaba, West Bengal. Hosted in collaboration with the Government of West Bengal, ICAR-NBFGR, and the State Bank of India, the summit brought together FPCs from 12 Indian states and over 1,200 farmers. This event served as a critical platform for knowledge exchange, business networking, and policy discussions focused on enhancing agricultural exports and integrating smallholder farmers into global value chains

For the first time, Odisha’s FPCs—Madanamohana Farmers Producer Cooperative Society Ltd, Sabujabisoi Farmer Producer Company Limited, and Sabujasanatanpali Farmer Producer Company Limited—were honored with Leadership Awards for their excellence in collective marketing, value addition, and leadership in agricultural exports.

“We never imagined that fresh mangoes from our farms could reach international markets. This recognition is a source of motivation for other farmers in the state. We thank the Government of Odisha, Palladium, and APEDA for their invaluable support,” said Prabhat Mahapatra, CEO, Madanamohana Farmer Producer Cooperative Society Ltd, Odisha.

The awards mark a turning point in Odisha’s agricultural landscape. Until recently, FPOs in the state faced significant challenges in accessing profitable markets. However, through strategic interventions, these organizations have successfully positioned their produce—including fresh mangoes—on the global stage, improving price realization and market access for smallholder farmers.

Palladium, in collaboration with the Department of Agriculture & Farmers’ empowerment, Government of Odisha and APEDA, shas played a pivotal role in this transformation. Through targeted initiatives, Palladium has facilitated the mobilization and market-oriented capacity-building of FPOs along with creating sustainable export linkages with remunerative international markets. This has not only improved the profitability and competitiveness of Odisha’s smallholder farmers but has also reinforced the state’s position as an emerging hub for high-quality agricultural exports.

The recognition of Odisha’s FPCs highlights the potential of farmer-led enterprises in integrating smallholder farmers into global supply chains. Strengthening FPOs with access to international markets, financial linkages, and technical expertise can enhance rural incomes, drive inclusive economic growth, and support sustainable development goals.

At the summit, Debarati Ghatak, Private Sector Engagement Specialist at Palladium, emphasized, “Palladium is proud to support and celebrate the achievements of Odisha’s FPCs. By providing them with essential guidance and resources, we are committed to enhancing their global market presence and ensuring their long-term sustainability in competitive agricultural trade.”

As Odisha emerges as a key player in India’s agricultural export landscape, its success story serves as an inspiration for farmer cooperatives worldwide. State government’s ongoing initiatives, such as the Promotion and Stabilization of Farmer Producer Organizations in Odisha, are ensuring that smallholder farmers receive the necessary support to thrive in competitive markets. These efforts contribute to improved income opportunities for rural farmers, stronger market resilience against price fluctuations and sustainable business models for FPOs and farmer collectives.

With continued investment in capacity-building, policy support, and market integration, Odisha’s success reinforces the need for global collaboration to empower smallholder farmers, strengthen agribusiness ecosystems, and drive sustainable rural development.

As the state prepares for the upcoming mango harvesting season, this achievement sets the stage for more FPOs to explore international market opportunities, adopt best practices, and contribute to a more inclusive global agricultural trade system.

In a landmark achievement for farmer-led enterprises,

Agribusiness, AgroPolicy, Allied Industry

During the plenary session on “Agri Industry & Food Processing” on the second day of the Utkarsh Odisha – Make In Odisha Conclave 2025 on Wednesday, the Odisha government signed 17 memorandums of understanding (MoUs) with different investors

A new policy on cold storage in the state was introduced on the occasion by Odisha Deputy Chief Minister Singh Deo, who is also the Minister for Agriculture and Farmers’ Empowerment.

“Now is the best time to invest in Odisha,” Singh Deo said in a statement marking the event.

“The food processing industry in Odisha is capable of bringing new innovations,” he continued. Under the Chief Minister’s Agriculture Industry Scheme, we are promoting farmers or business owners. Our government is pursuing digital marketing and smart farming. Our government is focused on organic farming.

Singh Deo urged investors to visit Odisha and put money into the state’s food processing and agro-industrial sectors. We will introduce a new revolution in this industry if young entrepreneurs step up as well. A new cold storage policy has been introduced by the state government.

Odisha has a lot of promise, according to Gokulananda Mallick, the state’s minister for the development of fisheries and animal resources. The state is prepared to take the lead. We have a lot of room to establish agro-based businesses. Compared to other nations, we lag significantly behind in this area.

There is a lot of promise in Odisha. Odisha is prepared to lead. We are capable of establishing an agro-industry. Odisha, however, lags far behind in terms of exporting and producing fish. across Odisha, the seafood business is only around Rs 2,000 to 3,000 crore, compared to Rs 60,000 crore across India. We must raise it. One of the cornerstones of a thriving Odisha would be young entrepreneurs. Mangoes, dragon fruit, turmeric, and other products are exported from Odisha.

During the plenary session on "Agri Industry

Agribusiness, India, Interaction, Start ups, Sustainability

In an interview with AgroSpectrum, Avinash Rao, CEO & Co-Founder, Agrileaf highlighted the innovations towards ensuring ecological balance and sustainability as well as the impact of such remarkable milestones in rural development.

In December 2024, Agrileaf, one of India’s leading producers and exporters of areca leaf dinnerware, secured funding of Rs 16 crore from Capital A and Samarsh Capital. With the additional funding, Agrileaf is expanding its production capacity thereby enhancing its line of biodegradable dinnerware and packaging and promoting community involvement. Located in Dakshina Kannada, the company’s cutting-edge facility integrates sophisticated robotics, AI-powered quality control, and an effective areca leaf harvesting network creating over 1,000 job possibilities, which supports the economic growth of rural areas.  In an interview with AgroSpectrum, Avinash Rao, CEO & Co-Founder, Agrileaf highlighted the innovations towards ensuring ecological balance and sustainability as well as the impact of such remarkable milestones in rural development. Edited excerpts:

What is the process involved in turning the areca palm leaves into disposable plates and food platters?

We get dried, fallen areca sheaths from nearby farmers, who receive a reasonable payment for the raw material. The collected dry areca leaf sheaths are soaked in water, cleaned, and positioned so that the water drains entirely. After being cleaned, the leaves are pressed into moulds with different sizes and eye-catching patterns based on the needs of the market. A hot moulding procedure is used to sterilise the clean fibre and give the finished product its final shape. Before being packaged and shipped, these biodegradable plates undergo a last quality check and finishing process. After being packaged per the needs of the customer and shipped securely, the fallen leaf plates are still usable six months later. Mostly women farmers are involved in this activity. We pay them between Rs 15,000 and Rs 20,000 per annum.

During processing, the leaves are washed, and hot pressed in moulds to give shape to the plate. Thus, the plates become rigid naturally. In arecanut plantations as such, no harmful chemicals are sprayed. Mostly Copper Sulphate is sprayed as a fungicide. Often lime is also used. The natural layer of film on the leaf sheath keeps the product USP on top.

What are the key environmental benefits of using areca palm leaves compared to traditional plastic or paper plates?

Compared to paper plates where huge energy is wasted to obtain the final product, arecanut plates are manufactured using green energy without depleting water resources or using harmful chemicals for processing. Moreover, areca palm leaf plates are entirely biodegradable and decompose naturally, unlike plastic plates which can take hundreds of years to break down. This reduces landfill waste and the environmental footprint of disposable products. The leaves are collected without harming the tree, and no chemicals or artificial fertilisers are required in their cultivation. This makes the production of these plates more environmentally friendly compared to the resource-intensive processes involved in making plastic or paper plates.

As discussed earlier, the production process of areca palm leaf plates typically involves minimal processing, using no harmful chemicals or energy-intensive machinery. In contrast, plastic plate production relies on petrochemicals and energy-heavy processes, while paper plates require significant water and energy resources for pulp production. Unlike paper plates, which contribute to deforestation, areca palm leaf plates are made from fallen leaves, ensuring no trees are cut down. The leaves naturally shed and are collected, avoiding any additional strain on forests. Areca palm plates are chemical-free, unlike some paper plates that may be coated with wax or synthetic chemicals to make them waterproof or more durable. This ensures that the plates are safe for both human use and the environment.

Speaking from a sustainability point of view, the plates can be composted, contributing to soil health rather than adding to waste. Paper plates may be compostable, but they often contain additional coatings that can hinder the composting process, whereas areca plates are entirely natural. Thus, areca palm plates are an eco-friendly alternative that supports sustainability, reduces waste, and helps protect ecosystems.

Areca palm leaf plates offer versatility and functionality suitable for various occasions and food types. They are heat-resistant, allowing them to withstand hot dishes without warping or leaching harmful chemicals. This makes them ideal for serving both hot and cold food items at events, parties, and restaurants.

Are Agrileaf products available in international markets, or do they primarily serve the local or national market in India?

Agrileaf products, which are made from areca palm leaves, are primarily manufactured in India, where the company is based. However, they have expanded their reach to international markets as well. The growing demand for eco-friendly, biodegradable alternatives to plastic and paper products has encouraged Agrileaf to export its products globally. These products are often available through online platforms, direct export channels, and partnerships with international distributors. While India remains a significant market for Agrileaf products, the company has also tapped into international markets, including regions in Europe, the United States, and the Middle East, where there is a rising awareness and preference for sustainable, environmentally friendly alternatives. Therefore, Agrileaf products are not limited to the local or national market in India and have begun to cater to international consumers and businesses seeking eco-conscious products.

As of date, 90 per cent of revenue comes from the USA. We plan to establish our footprints in Japan as well. As far as growth in the domestic market is concerned, extra marketing cushion in India is not available as arecanut plates are perceived as high-volume price commodities. We need better warehouses to distribute our products to different cities in India which might further add up to the cost of production. On the other hand, for export, it is an immediate dispatch which saves our cost to some extent.

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

In an interview with AgroSpectrum, Avinash Rao,

Agribusiness, Company News

Since its founding in 1987, Tetra Pak, the world leader in food processing and packaging solutions, has revolutionized India. Tetra Pak has previously shown a strong commitment to local production, innovation, and sustainability in the Indian market long before the “Make in India” movement gained traction

Tetra Pak’s modern production plant in Chakan, Pune, is evidence of the business’s enduring dedication to India. With more than 1,500 employees, it is the biggest and most sophisticated Tetra Pak facility outside of Sweden. In addition to producing more than 85 per cent of the equipment sold in India, this plant acts as a center for international exports, training, and research. Remarkably, the plant sources 75% of its ingredients locally, supporting the domestic supply chain.

Over 300 micro, small, and medium-sized businesses (MSMEs) have joined the company as suppliers in the previous three years, demonstrating its commitment to local procurement. These partnerships further strengthen India’s manufacturing ecosystem by providing training and assistance to reach international standards.

The influence of Tetra Pak extends well beyond the boundaries of India. The Pune facility demonstrates India’s potential as a worldwide center for manufacturing and innovation by exporting food processing equipment to more than 50 countries.

Tetra Pak showcased state-of-the-art innovations that are intended to increase environmental sustainability and productivity at its recent flagship event, “Innovation Starts Here.” More than 100 decision-makers from the food and beverage sectors in South Asia attended the event.

Among the major innovations were- Packaging options that promote a circular economy by using certified recycled polymers, tethered caps, and 90% renewable material, tools for increased operational efficiency and lower costs include Asset Health Monitoring and Performance Analytics and advanced ice cream production technology, sugar-reduced juices, and high-protein dairy drinks were on display, providing solutions suited to changing customer tastes.

Tetra Pak is celebrating 37 years in India, and its emphasis on regional innovation, sustainability, and economic growth highlights how well it fits with the country’s growth narrative. Tetra Pak continues to be a key player in developing India’s food and beverage sector and supporting the “Make in India” drive by fusing international experience with local dedication.
Tetra Pak continues to be a key player in developing India’s food and beverage sector and supporting the “Make in India” drive by fusing international experience with local dedication.

Since its founding in 1987, Tetra Pak,

Allied Industry

National Institute of Food Technology Entrepreneurship and Management, Kundli (NIFTEM-K), under the aegis of the Ministry of Food Processing Industries (MoFPI), hosted a high-level international delegation comprising of 17 representatives from the ECOWAS (Economic Community of West African States) region, National Fortification Alliances, including technical experts and policymakers and officials from the West African Health Organization (WAHO), underlining the regional significance of this knowledge-sharing initiative, visited NIFTEM-K to study India’s successful food fortification initiatives

National Institute of Food Technology Entrepreneurship and Management, Kundli (NIFTEM-K), under the aegis of the Ministry of Food Processing Industries (MoFPI), hosted a high-level international delegation comprising of 17 representatives from the ECOWAS (Economic Community of West African States) region, National Fortification Alliances, including technical experts and policymakers and officials from the West African Health Organization (WAHO), underlining the regional significance of this knowledge-sharing initiative, visited NIFTEM-K to study India’s successful food fortification initiatives. The visit, organised by German Federal Ministry of Economic Cooperation and Development (BMZ) brought together representatives from Burkina Faso, Senegal, Nigeria, Côte d’Ivoire, Ghana, Benin, and Madagascar.

“This exchange represents a significant milestone in international cooperation for food fortification. As an Institute of National Importance, NIFTEM-K is proud to share India’s expertise and technological innovations in food fortification with our partners from Africa, contributing to global nutrition security” said Dr. Harinder Singh Oberoi, Director of NIFTEM-K.

The interactions led to deliberations over the international cooperation for fortification initiative. Mr. Arvind Kumar (Deputy Secretary, Ministry of Food Processing Industries-MoFPI), in his special address, emphasized on the crucial role of the Ministry in supporting such collaborative initiatives to enhance global nutrition. He also mentioned the important flagship schemes of the Ministry including PMKSY, PLISFPPI and the PMFME etc. Interactive session by the experts discussed over fortification standards, regulations, trade practices in India and the globe. Sh Arun Om Lal, Industry Chair Professor, NIFTEM-K while moderating the session provided insights into NIFTEM-K’s infrastructure, research capabilities, fortification facilities and advanced food processing facilities at pilot plants as well as FSSAI notified food testing facility of CFRA, underscoring its role in capacity building and industry partnerships.

Dr. Komal Chauhan, Head-CEFF and Dean (Research & Outreach), NIFTEM-K, warmly welcomed the national and international delegates, fostering meaningful discussions on strengthening fortification policies, scaling up effective interventions, and advancing food security. The visit provided a platform for knowledge exchange, international collaboration, and strategic partnerships, reinforcing NIFTEM’s commitment to driving innovation and excellence in food fortification on a global scale.

National Institute of Food Technology Entrepreneurship and

Agribusiness, Agrotech, Digital Technologies, India, IT, Opinions

 By Dhanashree Mandhani, Founder and CEO, Salam Kisan

The agritech ecosystem offers a groundbreaking chance to boost agricultural efficiency by 25-35 per cent, alongside adding $95 billion to the economy. Firms that prioritise technology integration today will enhance their ability to gain market share in the fast-expanding agritech industry. Agribusinesses that adopt these technologies now will be the ones influencing the future of agriculture in the days to come.

Technology is rapidly becoming the cornerstone of agricultural transformation, poised to create a $62.76 billion opportunity for agribusinesses by 2031. As global food demand surges to meet the needs of 9.8 billion people by 2050, traditional farming methods alone cannot deliver the required 70 per cent   increase in production. This gap presents a crucial opportunity for agribusinesses to leverage technology solutions that can revolutionise farming operations, optimise supply chains, and create sustainable growth at scale.

Agribusinesses are bridging this gap and bringing a paradigm shift in the agriculture sector with the integration of advanced technologies to bring operational efficiency. Leading companies are deploying artificial intelligence (AI), the Internet of Things (IoT), and drone technologies to create end-to-end solutions that benefit both their operations and their farming partners.

Why Tech Integration Is Strategic Imperative

The technological revolution has created significant strategic advantages for B2B players across the agricultural sector. Agricultural corporations and startups are developing and deploying AI-powered systems not just for farm-level decisions but to optimise their entire supply chain – from procurement to distribution. Supply chain optimisation through real-time tracking and analytics has enabled agribusinesses to manage inventory more efficiently and reduce wastage substantially. Supply chain technology has also emerged as a critical investment area, with solutions focusing on traceability, quality management, and logistics optimisation.

Another innovation that is empowering farmers and agribusinesses is precision agritech.  They are revolutionising how agribusinesses optimise their operations and support their farming partners. By integrating GPS guidance systems, advanced sensors, and drone technologies, companies can now offer data-driven solutions that transform traditional farming practices. These enterprise-grade systems provide real-time analytics and actionable insights, enabling agribusinesses to help farmers reduce input costs while increasing yields. For instance, leading agricultural corporations are using sensor networks and drone fleets to create detailed field maps, monitor crop health, and implement variable-rate application of inputs – delivering both environmental sustainability and improved profit margins across their supply chain.

Furthermore, IoT-enabled solutions have revolutionised resource allocation across business networks, while advanced sensing technologies have dramatically improved quality assessment and standardisation processes.

Transformative Success Stories and Partnership

Successful technology integration in agriculture increasingly relies on strategic partnerships. India has made substantial investments in sustainable agricultural intensification (SAI) to tackle food security and sustainability challenges. The government, alongside private investors, allocates over $3 billion annually to agricultural innovation. These investments have resulted in the development of innovative solutions that strengthen market linkages, enhance crop resilience, and promote sustainable farming practices.

The impact of technology integration in agriculture is best illustrated through real-world success stories. For instance, the “Saagu Baagu” project, part of the Artificial Intelligence for Agriculture Innovation (AI4AI) initiative, has greatly boosted yields and incomes for 7,000 chilli farmers in Telangana. Developed in collaboration with the Telangana government, with support from the Bill and Melinda Gates Foundation and implemented by Digital Green, the project has leveraged agritech and data management to double farmers’ earnings.

 By Dhanashree Mandhani, Founder and CEO, Salam

R&D

Globally, the vertical farming market is expanding, and by 2034, it is expected to reach a value of about $50.78 billion. With a startling compound annual growth rate (CAGR) of 19.9 per cent, this industry is growing in importance as the globe struggles with food security issues brought on by population increase and urbanization

The technique of growing crops in layers as opposed to conventional horizontal rows is known as vertical farming, and it makes use of cutting-edge technologies to establish controlled conditions that are perfect for plant growth. Leading companies like AeroFarms and Plenty are leading this transformation by using techniques like hydroponics and aeroponics to maximize the efficiency of food production.

Polaris Market Research states that “vertical farming is farming on vertical surfaces rather than traditional, horizontal agriculture.” This contemporary method of farming aims to improve sustainability and guarantee food security for coming generations, not merely to make the most of available area. With the world’s population expected to grow to around 10 billion people by 2050, there is a greater need than ever for locally grown, fresh vegetables.

Numerous motivating variables are closely related to the market’s growth. First, traditional agriculture faces major challenges as a result of the shrinking amount of fertile land brought on by urbanization and climate change. Vertical farming solutions are becoming more and more popular because to the demand for fresh produce and growing knowledge of the advantages of sustainable agriculture methods.

The market for vertical farming is presently led by North America, which benefits from cutting-edge agricultural technologies and welcoming investment environments. The demand for pesticide-free vegetables is rising in urban areas, which is driving the expansion of vertical farms. According to the Market Research Forecast, “Rising population and demand for food are propelling the vertical farming market” and it emphasizes how cities are adjusting to integrate agricultural methods into their infrastructure.

Vertical farms are becoming more competitive on the inventive front thanks to the integration of technology. Artificial intelligence (AI) and the Internet of Things (IoT) are revolutionizing simple setups for real-time agricultural monitoring. Improved climate control and lighting systems are also essential; businesses are creating systems that adapt to the specific requirements of plants, increasing yields and decreasing waste.

It is interesting to note that vertical farms can maximize plant development conditions without depending on natural sunshine by utilizing artificial illumination, especially LED technology. This feature maximizes the utilization of urban space by enabling farms to function inside a variety of building types, including skyscrapers, abandoned warehouses, and shipping containers.

However, there are several difficulties in the vertical farming sector. Profitability can be elusive for small-scale farmers and new players due to high initial investment expenses. Concerns about energy use also persist, especially for enterprises that need constant artificial lighting and climate control. “High initial investment costs pose barriers to entry for new players,” critics have noted, calling for ways that strike a balance between sustainability and innovation.

In spite of these obstacles, vertical farming appears to have a bright future. There is a lot of interest from investors, and partnerships between important market players are opening the door for innovations. The introduction of urban farms integrated into marketplaces and retail establishments, which provide fresh produce straight to customers, is one recent development.

Vertical farming meets urgent urban agricultural demands and reimagines agricultural processes for sustainability, even though it might not completely replace conventional farming ways. The market is expected to grow significantly, and the combination of technology and agriculture is opening up new and exciting possibilities.

As food production becomes ready to meet the world’s expanding demands, new methods are being inspired by vertical farming concepts that challenge traditional methods. The potential for feeding the future appears limitless when agricultural innovation and urban infrastructure are combined, and this could revolutionize our understanding of food production.

Globally, the vertical farming market is expanding,

Agribusiness, Agrotech, Farm Mechanisation, India, Interaction, Machinery - Pre-harvesting, Machinery – Post-harvesting, Sustainability

In an interaction with AgroSpectrum Anoop Srikantaswamy, Co-founder and CEO, Moonrider shared trends and future of “Indian Electric Tractor Industry.

Moonrider has recently been successful in securing a venture round of funding of $2.2 million (Rs 19 crore). This funding round was jointly led by AdvantEdge Founders and Micelio Technology Fund, in addition to a considerable number of angel investors. Moonrider is an Electric Tractor Technology Company founded in 2023, focused on developing heavy-duty electric tractors (e-tractors) designed to reduce farming costs and improve operational efficiency for farmers and fleet operators. In an interaction with AgroSpectrum, Anoop Srikantaswamy, Co-founder and CEO of Moonrider, shared trends and future of “Indian Electric Tractor Industry.” Edited excerpts:

What is the current market size of the Electric Tractor Market in India?

India is the largest tractor market with 1 million units sold last year amounting to $17 billion in revenue. Globally it is a $30 billion market with 1.8 million units sold. Pheonix Research, an international market research consultancy, projects that the e-tractors market in India will grow at a healthy compound annual growth rate (CAGR) of 21.5 per cent between 2021 and 2027.

How do you envisage the future of e-tractors in the Indian agriculture sector?

The agricultural industry is responsible for 18 per cent of India’s gross domestic product, and e-tractors will play a significant part in the development and progress of the sector from this point forward. Farm mechanisation will be made possible by e-tractors, which will also contribute to an increase in farm production and profitability. Within 8-10 years, e-tractors will replace 50 per cent of the diesel tractors that are currently used on farms. When it comes to the promotion of environmentally friendly assets that will lead to the widespread use of e-tractors, we also anticipate more cooperation from the government.

Not only do e-tractors assist in encouraging sustainable agricultural techniques, but they also help reduce the carbon footprint of farmers. The consumption of diesel-by-diesel tractors in India accounts for 7.4 per cent of the country’s annual diesel consumption, which results in increased carbon emissions.

What are the major challenges of the e-tractor sector and how can they be resolved?

We will need to assist users in comprehending and becoming aware of the considerable benefits that are offered, which will ultimately lead to the broad adoption of e-tractors. This is necessary for any new technology or product launch. Another area that presents difficulties in the present day is the financing of the acquisition of e-tractors. It will be easier to accelerate the adoption of e-tractors if there is more participation from nationalised banks that offer favourable interest rates. The supply of electricity in particular locations may be uneven; fixing this issue will make it simpler for farmers to use e-tractors that are suitable for their requirements. With that being said, the backing of the government is necessary; subsidies and policies that are advantageous will assist in increasing the adoption and utilisation of e-tractors.

You have mentioned that your mission is enhancing farm profitability. Can you elaborate on that?

From the perspective of farm equipment, one must lower the operating costs and the initial capital expenditure to improve the profitability of the farm. More money is earned and saved by farmers as a result of this. The fact that our e-tractors are 70 per cent less expensive to operate and maintain has a direct influence on the profitability of farms and the income of farmers. Further, Moonrider e-tractors, such as our 75-horsepower (HP) e-tractors, are priced similarly to their diesel equivalents, which makes them an appealing prospect for consumers and farmers alike.

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

In an interaction with AgroSpectrum Anoop Srikantaswamy,

Agribusiness, AgroPolicy, Farm Mechanisation, India, Industry Reports / Analysis, Machinery - Pre-harvesting, Machinery – Post-harvesting, Sustainability

The Indian agricultural ecosystem’s quicker adoption of e-tractors will promote early market development, giving homegrown producers the chance to expand their worldwide leadership in e-tractor production and open up export markets.

JMK Research & Analytics estimated diesel tractors contributed 7.4 per cent of the country’s yearly fuel consumption. The continuous use of diesel tractors has further caused greenhouse gas emissions to rise, with India thereby accounting for 7.3 per cent of world emissions, primarily from transportation and agriculture at the rate of 8.36 per cent and 14 per cent, respectively. The headwinds of growing global concerns on ecological balance and sustainability therefore influenced the transition towards the electrification of tractors and adoption of advanced electric tractors to reduce these emissions. The effective implementation of e-tractors in India will require a thorough and cooperative effort from several sectors. The Indian agricultural ecosystem’s quicker adoption of e-tractors will promote early market development, giving homegrown producers the chance to expand their worldwide leadership in e-tractor production and open up export markets.

The concept of electric tractors (e-tractors) however is still at a nascent stage in India. However, over time, the nation shall embrace and advance in electrification, creating ample opportunities for the e-tractors market to develop soon. In India, diesel tractors account for around 8.81 lakh registered units or 3.57 per cent of the total vehicle population in FY2024. The country continues to be a dominant player in the segment thereby exporting 10.33 per cent of the manufactured tractors to the international markets.

The diesel tractor market has eventually risen at a CAGR of 8.29 per cent between FY2016 and FY2024, indicating an enormous prospective in this sector. The top five companies made up roughly 85 per cent of the market share in FY2024.

With the most tractor registrations and the highest number of units sold between FY2014 and FY2024, Uttar Pradesh emerged as the state with the largest agricultural base, according to Vahan Database. The extent of automated farming in India’s key agricultural centres is demonstrated by the high tractor sales volumes in Madhya Pradesh, Rajasthan, Maharashtra, and Telangana. The growth from FY2023 to FY2024 is marginally lower at 8.84 per cent, whereas the annual average growth rate (AAGR) from FY2022 to FY2023 is 10.12 per cent (VAHAN 2024). The statistics demonstrate an apparent halt but overall steady growth. The country’s agricultural diversity is reflected in the geographic distribution of tractor sales, with states with intensive farming, such as Uttar Pradesh, exhibiting greater adoption rates.

A diminishing labour force and expanding food demand represent two primary challenges facing India’s agriculture sector, necessitating production quality and quantity increases. Although increasing farm mechanisation is necessary to boost productivity, it has boosted the use of diesel-powered tractors, which has raised the cost of operation and carbon emissions. The use of e-tractors offers a practical way to deal with these problems sustainably. As previously mentioned, e-tractors provide a sustainable substitute by lowering reliance on fossil fuels and greenhouse gas emissions. They additionally bring about a more economical cost of operation by requiring less fuel and maintenance. The drop in diesel demand may also alleviate the fiscal burden on the government, by providing fossil fuel subsidies.

As of June 2024, 127 e-tractor units have been registered cumulatively in India, as per JMK Research; including imported e-tractor vehicles from other countries and sales of prototype e-tractor vehicles built in India. In terms of state-wise deployment, the highest number of e-tractors has been registered in key agricultural states such as Haryana and Punjab.

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

The Indian agricultural ecosystem's quicker adoption of

Agribusiness, Farm Mechanisation, India, Industry Reports / Analysis, Machinery - Pre-harvesting, Machinery – Post-harvesting

With the support of new technologies such as electric tractors (e-tractors), precision agriculture and custom hiring the farm mechanisation industry is moving towards transformation from traditional tractor production to sustainable and customer-centric tractors by 2030. Let’s explore further.

Farm productivity has been adversely hit by a ceaseless migration of rural population to cities for ‘better prospects’ in the recent past, more so than ever before. This has triggered a significant growth in the market for farm machinery, especially tractors and harvesting equipment, to boost productivity. In 2023, the agricultural machinery market in India was valued at Rs 1.13 trillion and is expected to reach Rs 1.66 trillion by FY2029, expanding at a compound annual growth rate (CAGR) of 6.69 per cent during the 2024 – 2029 period.  Government initiatives, such as the Pradhan Mantri Kisan Samman Nidhi and subsidies for agricultural machinery purchases, are also encouraging farmers to adopt advanced technologies, further fuelling the growth of India’s agricultural machinery market. Business models such as custom hiring and tractor ownership have been started to increase the deployment of farm machinery across the country. Startups are supporting farmers through the Farming-as-a-Service (FAAS) model.  With the support of new technologies such as electric tractors (e-tractors), precision agriculture and custom hiring the farm mechanisation industry is moving towards transformation from traditional tractor production to sustainable and customer-centric tractors by 2030. Let’s explore further.

The role of modern agricultural machines is very crucial as they help in increasing agriculture production and productivity, improving the utilisation efficiency of costlier inputs such as seeds, fertilisers and irrigation water, besides the traditional use of humans and animals in farming. However, the adoption of mechanisation by the farmers of various states depends on varying factors such as socio-economic conditions, geographical conditions, crops grown, irrigation facilities etc.

Out of the multiple strategic interventions required to spur sustainable agricultural growth and achieve the vision of Viksit Bharat, improving the level of farm mechanisation seems to hold tremendous potential. The overall farm mechanisation level in India stands at 47 per cent which is still below the level of developing countries like Brazil and China where it is around 70 per cent. Farm mechanisation is even more important in India where 82 per cent of farmers belong to the small and marginal categories and half of the arable land is under the rainfed category. In these conditions, it becomes imperative for farmers to ensure the completion of activities on time. Multiple evidence suggests that the average yield in agriculture has a direct correlation with farm mechanisation.

According to the PwC report ‘Farm Mechanisation: A Catalyst for Sustainable Agricultural Growth’ published in February 2024, “Globally, the Asia-Pacific region holds the highest share (43 per cent) in the global farm machinery market. Among different kinds of farm machinery, tractors are used the most, having a share of almost 55 per cent. In India, of all farming equipment used by farmers, tractors make up 80 per cent of the total share. Due to the inclination towards increased tractor use in the country, the Indian agricultural sector is said to be ‘tractorised’. At present, the farm power availability in India is at 2.49 kW/ha. The Government of India has thus set an ambitious target of raising the farm power availability in the country to 4.0 kW/ha by 2030.

In India itself, the average farm power availability varies greatly across different states – i.e. 5–6 kW/ha in Punjab and Haryana 0.2 kW/ha in the north-eastern regions. This discrepancy is one of the major reasons for the uneven development of agriculture in India. It is also important to note that the farm mechanisation level varies according to the types of crops as well – cereal crops like wheat and rice stand at about 50–60 per cent mechanisation, whereas horticulture crops have a much lower level of mechanisation. However, at the same time, farm power availability has increased tremendously in India during the recent decades, helping India to become one of the major net exporters of tractors in the world.

The government is keen to promote mechanisation with the specific aim of increasing the reach of farm mechanisation to small and marginal farmers and to the regions where the availability of farm power is low and promoting ‘Custom Hiring Centres’ to offset the adverse economies of scale arising due to small land holding and high cost of individual ownership of agricultural machines. A Centrally Sponsored Scheme ‘Sub-Mission on Agricultural Mechanisation’ (SMAM) was implemented in all the States and Union Territories from 2014-15 including the state of Uttar Pradesh. Under this scheme, financial assistance @ 40 – 50 per cent of the cost of machines depending on the categories of farmers is provided for the purchase of agricultural machines. Financial assistance @ 40 per cent of the project cost is also provided to rural entrepreneurs, (rural youth and farmers as an entrepreneur), Cooperative Societies of Farmers (CSFs), Registered Farmers Societies (RFSs), Farmer Producer Organisations (FPOs) and Panchayats for the establishment of Custom Hiring Centres (CHCs) and Hi-tech hubs of high-value agricultural machines. Financial assistance @ 80 per cent of the project cost for projects costing up to Rs 30 lakh are provided to the CSFs, RFSs, FPOs, Self Help Groups (SHGs) and Panchayats for setting up of village level Farm Machinery Banks (FMBs). The scheme promotes almost all agricultural machines and equipment for crop production and post-production activities.

Between 2014-15 and March 2024, Rs 7265 crore were allocated for agricultural mechanisation.18,16,221 machines and various other equipment have been provided to farmers on subsidy. 25,527 CHCs, 594 high-tech hubs and 23,538 FMBs have been established to make available agricultural machines and equipment to the farmers on a rental basis. During 2024-25, Rs 69.99 crore was released to the States.

Custom Hiring Centres (CHCs)

Making various farm machinery/equipment for small and marginal farmers at an affordable rent is one of the main objectives of Custom Hiring Centres (CHCs). It also helps in offsetting adverse economies of scale due to the high cost of individual ownership. CHC improves mechanisation in places with low farm power availability. It mainly provides hiring services for various agricultural machinery/implements applied for different operations. CHC helps to expand mechanised activities during cropping seasons in large areas, especially in small and marginal holdings. It also provides hiring services for various high-value crop-specific machines applied for different operations.

The farm power availability for small/marginal land holdings is the lowest. As the small/marginal holdings constitute 85 per cent of total land holdings, the potential for CHC which will cater to the farm machinery requirement of such a vast area, is quite huge. Keeping in view the emphasis on agricultural farm machinery and the need for taking the farm machinery within the reach of small/marginal farmers, institutional credit needs to be made available for CHCs. Generally, FPOs have a base of more than 500 members, readily potential customers for the CHC. Further, CHC’s services can be made available to non-members to increase its viability.

India’s agriculture sector is vast but fragmented, with a significant portion of the country’s farmers holding small lands. For the small and marginal farmers, investing in modern equipment and advanced agricultural practices has traditionally been very expensive and also limited their productivity. FaaS addresses this challenge head-on by democratising access to these resources. Through affordable and scalable solutions, farmers can use technology to improve their yields, reduce input costs, and ultimately increase their profitability.

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

With the support of new technologies such

Biofuel industry

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Shri Narendra Modi, has approved revision of ethanol procurement price for Public Sector Oil Marketing Companies (OMCs) for the Ethanol Supply Year (ESY) 2024-25 under the Ethanol Blended Petrol (EBP) Programme of the Government of India. Accordingly, the administered ex-mill price of ethanol for the EBP Programme derived from C Heavy Molasses (CHM) for the Ethanol Supply Year 2024-25 has been fixed at Rs.57.97 per litre from Rs.56.58 per litre

The approval will not only facilitate the continued policy for the Government in providing price stability and remunerative prices for ethanol suppliers but will also help in reducing dependency on crude oil imports, savings in foreign exchange and bring benefits to the environment. In the interest of sugarcane farmers, as in the past, GST and transportation charges would be separately payable. Increase in prices of CHM Ethanol by 3 per cent will assure sufficient availability of ethanol to meet the increased blending target.

Government has been implementing Ethanol Blended Petrol (EBP) Programme wherein OMCs sell petrol blended with ethanol up to 20 per cent. This Programme is being implemented across the country to promote the use of alternative and environment friendly fuels. This intervention also seeks to reduce import dependence for energy requirements and give boost to agriculture sector. During the last ten years (as on 31.12.2024), ethanol blending in petrol by Public Sector Oil Marketing Companies (OMCs) has resulted in approximate savings of more than Rs.1,13,007crore of foreign exchange and crude oil substitution of about 193 lakh metric tonnes.

Ethanol blending by Public Sector Oil Marketing Companies (OMCs) has increased from 38 crore litre in Ethanol Supply Year 2013-14 (ESY – currently defined as ethanol supply period from 1stNovember of a year to 31st October of the following year) to 707crore litre achieving average blending of 14.60 per cent in ESY 2023-24.

Government has advanced the target of 20 per cent ethanol blending in petrol from earlier 2030 to ESY 2025-26 and a “Roadmap for ethanol blending in India 2020-25” has been put in public domain. As a step in this direction, OMCs plan to achieve 18 per cent blending during the ongoing ESY 2024-25. Other recent enablers include enhancement of ethanol distillation capacity to 1713 crore litre per annum; Long Term Off-take Agreements (LTOAs) to set up Dedicated Ethanol Plants (DEPs) in ethanol deficit States; encourage conversion of single feed distilleries to multi feed; availability of E-100 and E-20 fuel; launch of flexi fuel vehicles etc. All these steps also add to ease of doing business and achieving the objectives of Atmanirbhar Bharat.

Due to the visibility provided by the Government under EBP Programme, investments have happened across the country in the form of network of greenfield and brownfield distilleries, storage and logistics facilities apart from employment opportunities and sharing of value within the country among various stakeholders. All distilleries will be able to take benefit of the scheme and large number of them are expected to supply ethanol for the EBP programme. This will help in quantifiable forex savings, crude oil substitution, environmental benefits and early payment to cane farmers.

The Cabinet Committee on Economic Affairs (CCEA),