| Abstract |
In the recent decades, there have been substantial changes in the patterns of production, consumption and trade in Indian agriculture. One is the shift in production and consumption from food grains to high-value agricultural commodities such as fruits and vegetables, milk and milk products, meat, eggs, fish, and processed food products. Trade in high-value products is increasingly displacing exports of traditional commodities such as rice, sugar, tea, coffee, tobacco, etc. Thus, during the 2000s, the growth rate in value of exports of rice, sugar, marine products, tea, etc., declined, while high-value exports (fruits and vegetables, floriculture, meat, processed fruit juices) grew by about 18 per cent annually. Given the potential of high value agriculture, it is important to study the past performance and future prospects of growth of this sector. The present study has examined past and existing performance, identified likely challenges and opportunities for high-value-agriculture in the country, determinants of growth of high value agriculture, and changing consumption patterns using secondary data as well as selected case studies.
The study reveals a structural shift in consumption pattern away from cereals to high-value agricultural commodities, both in rural and urban areas, in the last two decades and a shift in dietary patterns across states and income classes is also observed. The increased demand for high-value products will continue to be an important driver for food markets in India, creating many opportunities for producers and processors but recent increase in food prices especially high-value products might have adverse impact on its growth. Due to shift in demand pattern towards high value crops, the farmers have also responded to market signals and gradually shifting production-mix to meet the growing demand for high-value commodities. The study suggests that a future road map for high-value agriculture development should focus on investment in technology development and dissemination, basic infrastructure, improve the technical capacity of producers and other players in the value chain, institutional support in core functions of production, logistics and marketing through concerted public sector support and active public-private partnerships, and provision of inputs, in particular planting materials for fruits and seeds for vegetables.
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