The development of agriculture in India: trends of recent years

India is one of the world's largest producers of agricultural products. Almost half of the country's population is employed in the agricultural sector, which accounts for approximately 16.4% of GDP.

India has three agricultural seasons: kharif, rabi, and zaid. Kharif begins with the arrival of the monsoon rains, during which crops such as rice, corn, peanuts, and others are sown from June to July. Harvesting takes place from September to October. Rabi, on the other hand, is the dry season: wheat, barley, and oilseeds are sown in October-December. Harvesting takes place in April-June. The Zaid season lasts from March to July, during which vegetables, melons, and industrial crops (such as jute) are sown and harvested.

India is one of the world's leading producers of sugar cane. In 2023, according to data from the Indian Ministry of Agriculture, sugar cane production amounted to 490.5 million tons. In 2024, this figure fell to 453.2 million tons.

In 2023, 303.6 million tons of grain were produced, of which about 80% was rice and wheat. The key grain-producing states are Uttar Pradesh, Madhya Pradesh, and Punjab. According to data from the Indian Ministry of Agriculture, in 2024, gross grain harvests increased to 308.1 million tons, of which 137.3 million tons were rice and 113.3 million tons were wheat.

The production of vegetables, root crops, and tubers in India increased in 2023, reaching over 200 million tons, while fruit and berry production exceeded 100 million tons. The leading states in vegetable production are Uttar Pradesh, West Bengal, and Madhya Pradesh. Andhra Pradesh, Maharashtra, and Uttar Pradesh are the leaders in the fruit segment.

The cattle population in India exceeds 300 million animals, of which approximately one-third are buffalo. Most states have banned the slaughter of domestic bulls and cows, which are considered sacred in Hinduism, the country's predominant religion. Cattle meat production reached 4.5 million tons in 2023. Poultry meat production amounted to 5.0 million tons, virtually unchanged from last year's figures. In addition, the country produced 2.7 million tons of goat meat. The leading states in meat production are Uttar Pradesh, Maharashtra, and West Bengal.

India is the world leader in milk production. In 2023, the country produced 239.3 million tons of this product. It should be noted that cow's milk accounts for about 50% of total production, with the rest coming from buffalo milk. The leaders in milk production in India are the states of Uttar Pradesh and Rajasthan.

In recent years, India has been actively increasing its production of fish and seafood. In 2023, the volume was 17.5 million tons, of which 11.3 million tons came from aquaculture.

In 2024, India's imports of agricultural products reached a record high of US$36.1 billion, which is 13.7% or US$4.4 billion higher than in 2023. Overall, between 2020 and 2024, the country increased its purchases of agricultural products by 75.2% or US$15.5 billion amid population growth and rising incomes, while being unable to fully meet domestic demand for food through local production.

In 2024, palm oil accounted for the largest share of India's agricultural imports (24.0% of total purchases, or US$8.7 billion). The most popular imported agricultural products on the local market also included soybean oil (11.6% or $4.2 billion), sunflower oil (10.3% or $3.7 billion), beet and cane sugar (5.0% or $1.8 billion), and cashew nuts (4.6% or US$1.6 billion). In total, the 10 main commodity items accounted for 71.6% of India's agricultural imports in value terms at the end of the year.

In 2024, India significantly increased its purchases of peas (by 252.6 times or US$1.4 billion) and pigeon peas (+62.6% or +$522.6 million), which is explained by the temporary suspension of import duties on a number of legumes by the national government in December 2023 against the backdrop of a poor harvest in the country. At the same time, Indian imports of dried lentils (-34.3% or -$429.6 million) declined significantly over the same period, as local production is actively recovering after last year's decline.

The largest exporters of agricultural products to India in 2024 were Indonesia (14.4% of Indian imports of agricultural goods in value terms), Brazil (8.1%), and Malaysia (8.0%). Argentina (7.6%) and Russia (7.3%) were also among the top five supplier countries at the end of the year. Collectively, the top 10 countries accounted for 63.3% of India's agricultural imports in value terms in 2024.

Between 2020 and 2024, India significantly increased its purchases of agricultural goods from Russia (5.8 times or by $2.2 billion), Thailand (3.8 times or by US$744.6 million), Brazil (3.0 times or by US$1.9 billion), and Myanmar (3.0 times or by US$957.2 million).

India is one of the world's largest grain producers: it ranks among the top three countries in terms of gross wheat and rice harvests and among the top ten countries in terms of sorghum harvests. Virtually all of the grain grown (with the exception of rice) is consumed domestically, and frequent droughts and an unpredictable monsoon climate prevent India from consistently supplying these crops to foreign markets. The only exception is rice: on average, 25% to 40% of the world's total rice exports come from India.

In 2024, India purchased 1.2 million tons of grain on foreign markets for US$334.5 million, which is 3.5 times higher than in 2023 in real terms (837,000 tons) and 2.4 times higher in value terms (US$193.4 million). 3.5 times in volume terms (by 837,000 tons) and 2.4 times in value terms (by US$193.4 million). Compared to 2020, the indicator increased 3.5 times and 3.4 times, respectively.

Corn accounted for the largest share of India's grain purchases in 2024, representing 70.2% of imports in value terms, or approximately US$234.8 million. The most sought-after imported grain crops on the Indian market at the end of the year also included wheat (12.1% or US$40.4 million), barley (11.7% or US$39.3 million), oats (3.9% or US$13.1 million), and rice (1.7% or US$5.7 million). Together, these categories accounted for 99.7% of India's grain imports in value terms.

In 2024, there was a significant increase in the country's imports of corn and wheat. Compared to 2023, corn purchases increased 80.4 times in volume (+884.4 thousand tons) and 29.2 times in value (+$226.8 million), wheat imports increased by 37.0% (+31.4 thousand tons) and 27.1% (+8.6 million USD), respectively.

At the same time, the country significantly reduced imports of barley – by 34.7% in volume (-64.3 thousand tons) and by 49.4% in value (-US$38.4 million), and oats – by 33.5% (-16.0 thousand tons) and 26.4% (-$4.7 million), respectively.

Among the largest grain exporters to India in 2024, Myanmar took first place, accounting for 35.7% of all supplies in value terms ($119.4 million). The country supplied corn to the Indian market. The second leading supplier of grain to the Indian market is Ukraine, which in 2024 supplied 457,100 tons of this product (mainly corn) worth US$110.8 million (33.1% of Indian imports in value terms). Australia also exported significant volumes of grain (wheat) – 122,600 tons worth US$45.2 million (13.5%). In total, the top 10 countries accounted for 97.7% of India's imports of this product in value terms at the end of the year.

In 2024, Myanmar, Uruguay, and Ukraine increased their grain supplies to India the most. Exports of this product from Ukraine increased from 1.7 thousand tons and US$530,000 to 457.1 thousand tons and US$110.8 million. Myanmar and Uruguay resumed their supplies in 2024. At the same time, India significantly reduced its purchases of grain from France over the year – by 86.0% in volume (-86.1 thousand tons) and by 86.4% in value (-$37.4 million).

India is one of the world's largest producers, consumers, and importers of legumes, which are an important part of the daily diet of Indian households, especially for vegetarians, as they are one of the main sources of protein. In 2024, India purchased 6.9 million tons of legumes on foreign markets for US$5.1 billion, which is 89.2% higher than the previous year in volume terms (+3.2 million tons) and 66.5% higher in value terms (+US$2.1 billion). Overall, between 2020 and 2024, India's purchases of legumes increased 2.7 times in volume and 3.3 times in value.

In India's legume import structure in 2024, most of the supplies were peas (26.9% of import value) and dried pigeon peas (26.4%). The country also purchases beans (22.3%), dried lentils (16.0%), and dried chickpeas (8.2%). The volume of purchases of feed beans (horse beans) and other vegetable beans is currently insignificant.

In 2024, India significantly increased its imports of peas – compared to 2023, purchases in this category increased from 11.0 thousand tons and US$5.5 million to 2.9 million tons and US$1.4 billion. Imports of dried chickpeas also increased significantly, by 2.4 times (+304.5 thousand tons or +$247.9 million), and dried pigeon peas by 41.7% (+370.1 thousand tons) in volume and by 62.6% (+$522.6 million) in value, and beans – by 31.9% (+257.7 thousand tons) in volume and by 41.4% (+$336.0 million) in value. Such a significant increase in imports across a range of items is explained by the temporary suspension of import customs duties on a number of legumes by the national government in December 2023 against the backdrop of a poor harvest within the country. At the same time, purchases of dried lentils decreased from 1.7 million tons and US$1.3 billion to 1.1 million tons and US$823.7 million, and horse feed beans by 35.2% in volume (-6.3 thousand tons) and 31.0% in value (-$2.3 million).

Among the countries exporting legumes to India in 2024, Myanmar took the leading position, accounting for 23.6% of Indian imports of these products in value terms (US$1.2 billion, mainly beans and pigeon peas). The second largest supplier of legumes to the country is Canada, which in 2024 supplied almost 2.0 million tons of products worth US$1.1 billion to the Indian market (20.8% of imports by value, with most of the supplies being peas and lentils). Australia also exports significant volumes of pulses to India – 836,000 tons worth US$615.9 million (12.0% of Indian imports, mainly lentils and chickpeas). In 2024, Russia accounted for 9.0% of India's legume imports in value terms (US$460.9 million). The top 10 countries accounted for 90.2% of India's legume imports in value terms.

In 2024, Russia (25.7 times in volume and 13.3 times in value), Turkey (11 times and 5.7 times, respectively), Canada (2.2 times and 59.3%), and Brazil (2.1 times and 2 times, respectively).

India is one of the world's largest consumers and producers of vegetable oil, but the country is heavily dependent on imports. About 55-60% of India's domestic vegetable oil needs were met by imports. The country consumes about 28 million tons of vegetable oil annually.

In 2024, India imported 16.8 million tons of oil and fat products worth $16.9 billion. The volume of purchases of these products increased by 3.8% in real terms (-606.7 thousand tons) and by 2.7% in value (-$451.2 million) compared to 2023. Overall, in 2020–2024, India's imports of oil and fat products grew by 21.6% in volume and 60.5% in value.

In 2024, palm oil accounted for the largest share of India's oil and fat imports (51.1% of the value of imports, or US$8.7 billion). Other major imported products included soybean oil (24.8% or US$4.2 billion) and sunflower oil (21.9% or US$3.7 billion). Together, these product categories accounted for 97.7% of India's oil and fat imports in value terms at the end of the year.

In 2024, India increased its imports of animal and vegetable oils and fats most significantly: compared to 2023, purchases in this category increased by 93.5% in volume (+7.1 thousand tons) and by 30.1% in value (+$6.5 million). Indian imports of palm kernel oil and babassu oil grew by 7.8% in volume (+9.3 thousand tons) and by 30.9% in value (+$36.9 million), sunflower oil – by 20.3% (+630.8 thousand tons) in volume and by 9.3% (+$315.5 million) in value, soybean oil imports increased by 18.4% (+645.8 thousand tons) in volume and by 4.3% (+$171.9 million) in value. At the same time, India reduced its imports of palm oil by 7.8% in volume (-728.1 thousand tons) and by 1.5% in value (-$134.8 million), and olive oil by 24.2% (-2.4 thousand tons) in volume.

Among the countries exporting vegetable oil and fat products to India in 2024, Indonesia took the leading position, accounting for 25.7% of Indian imports of these products in terms of value (US$4.3 billion, mainly palm oil). Malaysia is the second largest supplier of vegetable oil and fat products to India (16.6% of the value of imports), which in 2024 supplied 1.5 million tons of these products to the country. The second largest supplier of vegetable oil and fat products to India is Malaysia (16.6% of imports by value), which in 2024 supplied the local market with almost 2.8 million tons of products (mainly palm oil) worth about US$2.8 billion. Argentina also exported significant volumes at the end of the year – 2.7 million tons worth US$2.7 billion (16.0% of Indian imports in value terms, mainly soybean oil). Russia accounted for 12.8% of India's vegetable oil and fat product purchases (2.2 million tons of products worth US$2.2 billion). Russia accounted for 12.8% of India's purchases of vegetable oil and fat products (2.2 million tons of products worth $2.2 billion, mainly sunflower oil). The top 10 countries accounted for 92.7% of the value of India's imports of oil and fat products.

In 2024, Russia increased its oil and fat product deliveries to India the most, by 84.4% in volume (+1.0 million tons) and by 73.7% in value (+$918.3 million), Ukraine – by 56.5% (+296.6 thousand tons) in volume and by 42.3% (+$248.4 million) in value, and Argentina – by 45.9% (+854.7 thousand tons) in volume and by 30.1% (+$628.1 million) in value. At the same time, there was a significant reduction in supplies to the Indian market from Brazil – by 41.5% (-524.3 thousand tons) and 50.7% (-762.4 million US dollars) and Romania – by 41.0% (-287.2 thousand tons) and 47.2% (-349.7 million US dollars).

In 2024, the country imported 297.7 thousand tons of soft drinks worth 273.9 million US dollars. Compared to the previous year, India's imports of this product category increased by 1.4% in volume terms (+4.2 thousand tons) and by 0.2% in value (-497.0 thousand US dollars). At the same time, compared to the level of 2020, the value of the indicator increased by 87.1% and 2.2 times, respectively.

In the structure of non-alcoholic beverages imports in India in 2024, the largest share fell on non-alcoholic beverages, except for water and juices (83.9% of the value of imports or 229.7 million US dollars). Fruit and vegetable juices accounted for 14.5% of the category's imports in value terms (USD 39.7 million). Purchases of water without sugar and additives amounted to 1.6% (USD 4.5 million). In 2024, an increase was recorded in imports of water without sugar and additives by 12.3% (+471.0 tons) in volume terms and by 20.5% (+759.0 thousand US dollars) in value, and non–alcoholic beverages, except water and juices - by 2.8% (+7.4 thousand tons) in volume terms and by 0.5% (+1.2 million USD) in value terms. At the same time, the country's imports of fruit and vegetable juices decreased by 16.6% (-3.7 thousand tons) in volume terms and by 3.6% (-1.5 million US dollars) in value.

Nepal took the leading position among the countries exporting soft drinks to India in 2024, accounting for 22.5% of Indian imports of these products in value terms (61.7 million US dollars, mainly non–alcoholic beverages, except water and juices). The second largest supplier of soft drinks to India is Germany, which in 2024 supplied 39.1 thousand tons of products worth 49.4 million US dollars to the local market (18.0% of the country's value imports, mainly non–alcoholic beverages, except water and juices). Sri Lanka also exported significant volumes - 47.8 thousand tons worth 40.6 million US dollars (14.8% of all Indian imports in value terms, mainly non–alcoholic beverages, except water and juices). In total, the top 10 countries accounted for 84.5% of India's value imports of soft drinks by the end of the year.

In 2024, India has most noticeably increased purchases of soft drinks from China and Germany. China's exports increased by 58.5% in volume terms (+2.2 thousand tons) and by 64.8% in value (+2.6 million US dollars), Germany – by 48.2% (+12.7 thousand tons) and 28.2% (+10.9 million US dollars), respectively. At the same time, there was a significant reduction in the supply of these products from Italy – by 44.6% (-8.3 thousand tons) and 49.9% (-12.6 million US dollars), respectively.

India is a major producer and consumer of flour confectionery products. The development of local production is facilitated, first of all, by effective measures of state support for small and medium-sized businesses, as well as high rates of import customs duties on many categories of finished food products. In the structure of consumption of all types of confectionery products in the country, more than 90% is accounted for by the consumption of flour confectionery products, while the share of consumption of sugary and chocolate confectionery products is about 6% and 3%, respectively.

In 2024, India imported 87.9 thousand tons of confectionery products worth 272.5 million US dollars, which is 16.4% higher than in 2023 in volume terms (+12.4 thousand tons) and by 14.4% in value (+34.3 million US dollars). In general, in 2020-2024, the volume of Indian purchases of confectionery products increased by 59.5% in volume terms and 2.2 times in value.

In the structure of India's confectionery imports, chocolate confectionery products account for the largest share, accounting for 50.6% of value imports (USD 138.0 million) in 2024. Flour confectionery and bakery products accounted for 38.0% of purchases, sugary confectionery products – 11.3%. In 2024, India's imports of flour confectionery increased by 43.4% in volume (+12.7 thousand tons) and by 29.8% in value (+23.8 million US dollars). Purchases of sugary confectionery products also increased by 17.9% (3.6 thousand tons) in volume and 5.1% (1.5 million US dollars) in value. At the same time, the country's purchases of chocolate confectionery decreased by 14.9% (-3.9 thousand tons) in volume.

Indonesia took the leading position among the countries exporting confectionery products to India in 2024, accounting for 16.7% of the value of imports of this commodity group (45.6 million US dollars, mainly flour confectionery products). Malaysia was the second largest supplier, accounting for 8.5 thousand tons of products worth 37.0 million US dollars (13.6% of Indian imports in value terms). Flour confectionery and bakery products accounted for most of the purchased products. Bangladesh also exported significant volumes of confectionery products to India by the end of the year – 21.6 thousand. tons worth 31.5 million US dollars (11.6% of the value of imports, mainly flour confectionery and bakery products). In total, the top 10 countries accounted for 84.1% of India's confectionery imports in 2024.

In 2024, the supply of confectionery products to the Indian market increased most noticeably from Italy, which increased exports of these products by 45.5% in volume terms (+876.0 tons) and by 54.0% in value (+9.5 million US dollars), Belgium – by 52.4% (+1.1 thousand tons) in volume terms and by 40.4% (+7.9 million US dollars) in value, and Indonesia – by 37.2% (+5.6 thousand tons) in volume terms and by 29.7% (+10.4 million US dollars) in value terms. At the same time, in 2024, there was a significant reduction in shipments of confectionery products to India from the Netherlands – by 34.6% in volume terms (-851.0 tons) and by 22.4% in value (-2.8 million US dollars), and Turkey – by 18.4% (-1.1 thousand tons or -4.2 million US dollars).

In 2024, India imported 178.3 thousand tons of grain and leguminous products worth 100.2 million US dollars, which is higher than in 2023 by 26.5% (+37.4 thousand tons) in volume and by 3.3% (+3.2 million US dollars) in value. In general, in 2020-2024, India's purchases of grain and leguminous products increased by 66.8% and 53.4%, respectively.

Processed cereals accounts for the largest share in the structure of imports of processed grain and leguminous products in India (34.0% of the country's imports of these products in value in 2024). Wheat gluten (19.3%) and starch (11.7%) also accounted for a significant volume of the country's imports. In total, these product categories accounted for 64.9% of Indian imports of processed grain and leguminous products in value by the end of the year.

In 2024, India significantly increased purchases of flour from other grains – by 12.9 times (430.0 tons) in volume and by 20.4 times (871.0 thousand US dollars) in value, by-products of wheat processing – by 2.5 times in volume (+21.3 thousand tons) and by 2.2 times (+4.2 million US dollars in terms of value, cereals processed by other methods increased by 66.2% (+21.7 thousand tons) and 62.3% (+13.1 million US dollars), respectively. At the same time, malt purchases decreased significantly – by 35.0% (-1.9 thousand tons) in volume and by 38.9% in value (-1.9 million US dollars), and cereals, flattened or processed into flakes – by 28.6% (-5.0 thousand tons) in volume and by 27.6% (-3.8 million US dollars United States dollars) in terms of value.

China ranks first among the countries exporting processed grain and leguminous products to India, accounting for 17.0% of Indian imports of these products in value terms (17.0 million US dollars, mainly wheat gluten) in 2024. The second largest supplier is Australia, which exported 20.1 thousand tons of products worth 14.6 million US dollars to India by the end of the year (14.6% of the value of imports, mainly cereals processed). Sri Lanka also supplied a significant amount - 42.5 thousand tons by 14.1 million US dollars (14.1% of imports in value, most of them by–products of wheat processing). Russia accounted for 12.1% of Indian imports of this type of product (22.2 thousand tons worth 12.1 million US dollars).

In 2024, the supply of processed grain and leguminous products to the Indian market increased most noticeably – by 37.4 times in volume (+21.6 thousand tons) and by 34.3 times in value (+11.8 million US dollars). During the same period, Tanzania increased exports of this type of product to India by 3 times (+14.8 thousand tons) and 2.6 times (+2.8 million US dollars), respectively, France – by 89.2% (+823.0 tons) and 70.8% (+1.1 million US dollars). At the same time, Australia reduced shipments to India by 34.3% (-10.5 thousand tons) in volume and by 29.9% (-6.2 million US dollars) in value, Belgium – by 16.9% (-672.0 tons) in volume and by 27.2% (-1.8 million US dollars) in value.

Exports of agricultural products of India in 2024 amounted to 50.7 billion US dollars, which is 3.5% (or 1.7 billion US dollars) higher than the previous year and 39.8% (or 14.4 billion US dollars) more than in 2020. A significant volume of Indian agricultural supplies abroad is supported by the development of the national agro-industrial complex and the diversification of sales geography.

The main export products of the Indian agriculture in 2024 were rice (23.3% of all supplies or 11.8 billion US dollars), crustaceans (8.9% or 4.5 billion US dollars), beef and bovine by-products (7.7% or 3.9 billion US dollars), sugar (4.5% or 2.3 billion US dollars) and paprika (2.8% or USD 1.4 billion). In total, at the end of the year, the 10 most demanded Indian agricultural products on the world market accounted for 58.3% of the value exports of the national agriculture.

In 2024, India increased its shipments of coffee (+51.3% or +382.8 million US dollars) and tobacco raw materials (+44.3% or +420.0 million US dollars) most noticeably in value. At the same time, the country experienced a decrease in sugar exports (-39.2% or -1.5 billion US dollars), as well as soybean meal (-12.3% or -136.7 million US dollars).

The largest buyers of agricultural goods from India in 2024 were the United States (11.2% of Indian agricultural exports in value terms), the United Arab Emirates (6.9%), China (6.2%), Saudi Arabia (4.7%) and Vietnam (3.9%). In total, the top 10 importing countries accounted for 47.3% of exports of national agricultural products in 2024.

In 2020-2024, purchases of Indian agricultural products increased most noticeably by Iraq (by 2.1 times or by 904.1 million US dollars), the United Arab Emirates (+89.1% or +1.6 billion US dollars) and Vietnam (+73.8% or +844.8 million US dollars). At the same time, exports of Indian agricultural products to Iran decreased significantly over the same period (-29.8% or -463.9 million US dollars).