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India’s agriculture sector has recently come into sharp focus. The country recorded an unprecedented foodgrain output of 357.73 Million Metric Tonnes (MMT) in 2024-25, surpassing all previous records. At the same time, India is engaged at the WTO’s 14th Ministerial Conference (MC14) in Yaoundé (March 26–29, 2026), where food security and agricultural subsidies are key contested issues.
This article examines India’s agricultural production systems, global standing, policy architecture, and farm-to-market value chain.
What is the significance of Indian agriculture in the economy?
India’s agricultural sector remains the backbone of its rural economy and a critical driver of national development:
1. Agriculture and allied activities contribute nearly one-fifth of India’s Gross Value Added (GVA) at current prices.
2. The sector employs approximately 46.1 percent of the workforce and supports close to 55 percent of the total population.
3. Over the past five years, the sector has achieved an average annual growth rate of around 4.4 percent at constant prices, driven by improved farm practices, technological integration, and more resilient production systems.
4. India holds the world’s second-largest agricultural land area, making it a natural anchor in global food supply chains.
Agriculture is not merely an economic sector in India – it is a social institution underpinning food security, rural livelihoods, and national sovereignty.
What are India’s recent agricultural production achievements?
1. Record foodgrain output- India produced 357.73 MMT of foodgrains in 2024-25, an increase of 25.43 Million Metric Tonnes (MMT) over the previous year, driven by higher output of rice, wheat, maize, and coarse cereals (including millets/Shree Anna).
2. Horticulture surge- Horticulture production reached 362.08 MT in 2024-25 – surpassing total foodgrain output – comprising 114.51 MT of fruits, 219.67 MT of vegetables, and 33.54 MT of other crops. Production has grown from 280.70 MT in 2013-14 to 367.72 MT in 2024-25.
3. Export growth- Agricultural exports grew from USD 34.5 billion (FY20) to USD 51.1 billion (FY25) at a CAGR of 8.2 percent. Agri-food exports constituted 11.2 percent of India’s total exports in FY25. The share of processed food in agri-exports rose from 14.9 percent (FY18) to 20.4 percent (FY25), signalling a shift towards value addition.
Where does India stand globally as an agricultural producer?
The table below summarises India’s global ranking and key production and export figures:
| Commodity | Global Rank | Production (2024-25) | Export Value | Key Producing States |
| Rice | 2nd | 150.18 MT | USD 12.95 billion | UP, Telangana, West Bengal |
| Wheat | 2nd | 117.94 MT | Data not specified | UP, MP, Punjab |
| Pulses | 1st | 25.68 MT | USD 855 million | MP, Maharashtra, Rajasthan |
| Millets (Shree Anna) | 1st | 18.59 MT | USD 59.20 million | Rajasthan, Maharashtra, Karnataka |
| Fruits | 2nd | 114.51 MT | USD 1,818.56 million (Food&Vegetables combined) | AP, Maharashtra, UP, Gujarat |
| Vegetables | 2nd | 219.67 MT | (combined above) | UP, WB, MP, Bihar, Gujarat |
| Sugarcane | 2nd | 454.61 MT | Data not specified | UP, Maharashtra |
| Cotton | 2nd | ~5.05 MT | Data not specified | Karnataka, Maharashtra, Gujarat |
| Spices | 1st | 12 MMT (2023-24) | USD 4.52 billion (FY25) | MP, Gujarat, Andhra Pradesh |
| Coconut | 1st | ~21.3 billion nuts/year | USD 513 million (2024-25) | Kerala, Karnataka, Tamil Nadu |
| Tea | 2nd | 1.203 MT (Apr–Dec 2024-25) | USD 605.90 million (Apr–Oct 2025-26) | Assam, WB, Tamil Nadu, Kerala |
| The Union Budget 2026–27 focuses on promoting high-value crops through region-specific support. It encourages crops like coconut, sandalwood, cocoa and cashew in coastal areas, agar in the North East, and nuts like almonds and walnuts in hilly regions. This approach aims to use local conditions effectively and shift farmers towards more profitable crops. |
What policy interventions support India’s resilient production systems?
India’s agricultural policy rests on three pillars: input productivity, financial investment, and mission-driven reform.
1. Budgetary commitment- Budget allocation for the Department of Agriculture and Farmers Welfare grew from Rs. 21,933.50 crore (~USD 2.64 billion) in 2013-14 to Rs. 1,27,290.16 crore (~USD 15.34 billion) in 2025-26. The Union Budget 2026-27 further raised this to Rs. 1,30,561.38 crore (~USD 15.73 billion) – nearly a 6-fold increase in thirteen years.
2. Mission-mode productivity programmes:
- National Food Security and Nutrition Mission (NFSNM)- A centrally sponsored scheme to boost production of rice, wheat, pulses, and nutri-cereals/coarse cereals across the country.
- Mission for Aatmanirbharta in Pulses (2025–31)- It aims to achieve self-sufficiency in pulses by significantly enhancing domestic production and reducing import dependence.
- National Mission on Edible Oils (NMEO)- Including Oil Palm (NMEO-OP) and Oilseeds (NMEO-Oilseeds), it targets self-reliance in edible oils by 2030-31. Between 2014-15 and 2024-25, oilseed area rose by over 18 percent, production by nearly 55 percent, and productivity by about 31 percent. Domestic edible oil availability reached 121.75 lakh tonnes in 2023-24.
3. Quality Seeds and Soil Health:
- Sub-Mission on Seeds and Planting Materials (SMSP)- Approximately 6.85 lakh Seed Villages established, producing 1,649.26 lakh quintals of quality seeds.
- Soil Health Card Scheme- Approximately 25.55 crore cards issued as of mid-November 2025, covering 12 soil parameters (Nitrogen, Phosphorus, Potassium, Sulphur, Zinc, Iron, Copper, Manganese, Boron, pH, Electrical Conductivity, and Organic Carbon). Cards are renewed every two years.
- Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)- Gross irrigated area expanded to 55.8 percent, improving water-use efficiency through drip and sprinkler systems.
4. Credit, Mechanisation and Technology:
- Ground-level agricultural credit disbursement reached Rs. 28.67 lakh crore in FY 2024-25.
- 7.72 crore operative Kisan Credit Card (KCC) accounts as of March 31, 2025 – providing single-window credit access for cultivation, post-harvest, and allied needs.
- 27,554 Custom Hiring Centres (CHCs) established between 2014-15 and 2025-26, improving access to farm machinery for smallholders.
- Livestock support: approximately 125 crore FMD vaccinations since 2020 and 88.32 million artificial inseminations in 2024-25.
5. Sustainable agriculture and extension:
- Natural farming expanded to 17,632 clusters covering 6.39 lakh hectares, with 15.79 lakh farmers enrolled.
- Kisan Call Centres handled 30.65 lakh farmer queries in 2024-25.
- Ethanol blending saved over Rs. 1.44 lakh crore in foreign exchange as of August 2025.
How has India strengthened farmer welfare and risk management?
1. Price and Income Support:
- Minimum Support Price (MSP): Announced for 22 mandated crops, fixed at a minimum of 1.5 times the cost of production, with upward revisions for Kharif Marketing Season (KMS) 2025-26 and Rabi Marketing Season (RMS) 2026-27.
- PM-KISAN: Over Rs. 4.27 lakh crore disbursed across 22 instalments as on March 17, 2026. The scheme provides annual assistance of Rs. 6,000 per farmer family in three instalments of Rs. 2,000, directly to Aadhaar-linked bank accounts via DBT.
- PM Kisan Maandhan Yojana (PMKMY): Enrolled 24.95 lakh farmers (as on February 2, 2026), providing a minimum monthly pension of Rs. 3,000 upon attaining 60 years of age, for small and marginal farmers aged 18–40 years.
2. Crop Insurance:
- Pradhan Mantri Fasal Bima Yojana (PMFBY): Insured 4.19 crore farmers across 6.2 crore hectares in 2024-25. Since 2016-17, over 86 crore applications processed and claims exceeding Rs. 1.90 lakh crore disbursed. Coverage expanded by 32 percent compared to 2022-23, strengthening protection against climate and market-related risks.
3. Cooperatives and Collective Action:
- Of 67,930 PACS under computerisation, 54,150 have been onboarded onto ERP platforms, with 43,658 operational.
- 18,183 new multipurpose cooperative societies registered by March 2025.
- National Cooperation Policy and Tribhuvan Sahkari University launched to strengthen governance and capacity-building in the cooperative sector.
How is India modernising its agricultural markets and value chains?
1. Market Infrastructure:
- As of February 28, 2026, 49,796 storage projects received financial assistance of Rs. 4,832.70 crore, and 25,009 marketing infrastructure projects received subsidies of Rs. 2,193.17 crore.
- e-National Agriculture Market (e-NAM): The pan-India electronic trading portal now connects 1.8 crore farmers, 2.72 lakh traders, and 4,724 FPOs across 1,656 mandis in 23 states and 4 UTs -enabling AI-based quality assaying, e-bidding, and direct e-payment to farmers under One Nation One Market.
- 10,000 FPOs registered by February 28, 2026 under the Formation and Promotion of FPOs scheme (launched 2020).
- In the fisheries sector, 2,195 Farmers’ Fisheries Producer Organisations (FFPOs) formed; Kisan Credit Card extended to 4.39 lakh fishers.
2. Food Processing and value addition:
- Food processing accounts for 12.91 percent of organised manufacturing employment.
- PM Kisan Sampada Yojana (PMKSY): 1,185 projects completed by November 30, 2025, building modern processing and cold-chain infrastructure.
- PLI Scheme for Food Processing Industry (PLISFI): 169 applications approved, mobilising investments of Rs. 9,207 crore; incentives of Rs. 2,162.55 crore disbursed by December 31, 2025.
- PM Formalisation of Micro Food Processing Enterprises (PMFME): Supported 4,04,062 applications, facilitating 1,72,707 loans worth Rs. 14.19 thousand crore, with seed capital of Rs. 1,277.45 crore extended to women SHGs.
3. Procurement and food security:
- The government procures foodgrains at MSP to ensure food security and provide price support to farmers. In Rabi Marketing Season (RMS) 2025-26, 300.35 LMT of wheat was procured benefiting 25.13 lakh farmers, while in Kharif Marketing Season (KMS) 2024-25, 832.17 LMT of paddy was procured benefiting 118.59 lakh farmers.
- Under the National Food Security Act, subsidised foodgrains are provided to 81.35 crore beneficiaries – covering 75 percent of the rural and 50 percent of the urban population.
4. Digitisation of the Public Distribution System (PDS):
- One Nation One Ration Card (ONORC): Operationalised across all 36 States and UTs with 99.8 percent Aadhaar seeding of ration cards.
- Over 99 percent of the 5.43 lakh Fair Price Shops equipped with ePoS devices, digitising more than 98 percent of transactions.
- In FY24, Rs. 267.6 crore transferred via DBT to over 10 lakh beneficiaries, improving targeting and accountability.
| SDG Linkages: India’s agricultural initiatives align directly with SDG 2 (Zero Hunger), SDG 9 (Industry, Innovation and Infrastructure), SDG 12 (Responsible Consumption and Production), and SDG 13 (Climate Action). |
What are the challenges confronting Indian agriculture?
Despite impressive achievements, Indian agriculture faces structural and emerging challenges:
1. Smallholder fragmentation- The majority of India’s farmers are small and marginal, with limited bargaining power, poor access to institutional credit, and vulnerability to weather shocks – despite government programmes, outcomes remain uneven.
2. Post-harvest losses- India loses a significant share of horticultural produce due to inadequate cold-chain infrastructure. Despite growth in Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) and storage investments, cold-chain coverage remains far below demand.
3. Import Dependence in edible oils- India remains heavily dependent on imported edible oils (primarily palm oil from Indonesia and Malaysia). The National Mission on Edible Oils (NMEO) seeks to address this, but self-reliance by 2030-31 requires accelerated progress.
4. Climate vulnerability- Erratic monsoons, heat waves, and unseasonal rainfall increasingly threaten yields. While Pradhan Mantri Fasal Bima Yojana (PMFBY) covers risk ex-post, adaptation infrastructure (drought-resistant varieties, micro-irrigation) needs further scaling.
5. Input-Intensive model and soil degradation- Heavy fertiliser and pesticide use has contributed to soil health deterioration. While Soil Health Cards and natural farming address this, transition at scale remains a challenge.
6. MSP coverage and realisation gaps- MSP is announced for 22 crops but effective procurement happens for only a handful – primarily wheat and paddy. A large proportion of farmers, especially in non-procurement states, cannot access MSP benefits.
7. WTO constraints on domestic support- India’s public stockholding programmes and agricultural subsidies face continued challenges within the WTO framework. The 10 percent subsidy ceiling under the Agreement on Agriculture constrains India’s food security architecture.
8. Value-addition gap- Despite a rise in processed food exports, India’s processing rate for fruits and vegetables remains low relative to global benchmarks, leading to high waste and suboptimal farmer incomes.
What should be the Way Forward?
1. Accelerate micro-irrigation and water efficiency- Expand PMKSY coverage beyond 55.8 percent to ensure water access even for rain-shadow and arid regions. Promote precision irrigation and rainwater harvesting for long-term water security.
2. Scale cold-chain and processing infrastructure- Substantially increase investment in cold-chain logistics, food processing clusters, and rural warehousing to reduce post-harvest losses – particularly for perishable horticultural produce.
3. Expand MSP access beyond wheat and paddy- Move toward a legally assured and operationally expanded procurement mechanism covering pulses, oilseeds, and coarse cereals to benefit farmers across diverse agro-climatic zones.
4. Deepen the FPO ecosystem- The registration of 10,000 FPOs must be followed by capacity-building, market linkages, and financial handholding so FPOs become viable economic entities rather than merely paper structures.
5. Accelerate edible oil self-sufficiency- Intensify the NMEO-Oilseeds and NMEO-Oil Palm programmes to reduce India’s dependence on edible oil imports and improve trade balance in agri-commodities.
6. Mainstream natural farming and soil health practices- Expand natural farming clusters beyond 17,632, with incentive structures and market linkages for naturally-farmed produce, reducing the chemical input burden on soils and farmers.
7. Defend food security interests at WTO- India must continue to push for a permanent, legally binding solution to public stockholding at the WTO MC14 and beyond, resisting any dilution of its domestic support mechanisms under pressure from developed countries.
8. Leverage digital agriculture infrastructure- Deepen e-NAM integration, promote AgriStack (a digital public infrastructure for agriculture), and mainstream AI-based advisory services through Kisan Call Centres to improve information symmetry and market integration for farmers.
Conclusion
India has come a long way. From food shortages to record harvests and growing agri-exports, the journey has been remarkable. Yet challenges like smallholder vulnerability, post-harvest losses, edible oil imports, and WTO constraints remain. How India addresses these will determine whether agriculture merely feeds the nation or truly empowers its farmers.
| Read more– PIB UPSC Syllabus- GS III– Indian Economy- Food Security; Major Crops, Cropping patterns, Storage, Transport and Marketing of agricultural produce |
