Indian agriculture enters new phase as diets, incomes and climate reshape farming: Report

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India’s agricultural economy is entering a new phase, with changing diets, rising incomes, climate risks and pressure on natural resources reshaping the priorities of farming. The focus is gradually moving from producing more foodgrains to creating greater value, diversifying production and using land and water more efficiently.

A new paper in the latest edition of The Indian Journal of Agricultural Sciences traces this transformation and identifies three broad phases in India’s agrifood system since the Green Revolution.

The paper, ‘Beyond the Green Revolution: Unravelling New Dynamics of India’s Agrifood System Transformation’, has been authored by Mangi Lal Jat, Director General, Indian Council of Agricultural Research (ICAR); Pratap Singh Birthal, Distinguished Fellow, Research and Information System for Developing Countries (RIS); and Sedithippa Janarthanan Balaji, Professor, Institute of Economic Growth (IEG).

The first phase, from roughly 1967 to 1995, was dominated by the need to achieve food security. The adoption of high-yielding varieties of rice and wheat, expansion of irrigation, fertiliser use, rural infrastructure, agricultural research and extension transformed Indian agriculture. Foodgrain production increased from about 74 million tonnes in 1966–67 to 152 million tonnes in 1983–84.

The Green Revolution helped India move towards food self-sufficiency. But the concentration on rice and wheat and intensive use of groundwater, fertilisers and other inputs also created environmental pressures in some regions, including groundwater depletion, declining soil fertility, biodiversity loss and pollution. As food scarcity became less dominant, India’s consumption patterns began to change.


Between 1996 and 2014, rising incomes, urbanisation, economic reforms and changing dietary preferences increased demand for fruits, vegetables, milk, meat, eggs and fish.

The scale of the change is reflected in household expenditure. The share of cereals in rural food expenditure fell from around 57% in 1972–73 to 10.6% in 2022–23, while the share of high-value foods rose from about 20% to 48.1%. In urban areas, cereals declined from 37% to 9.2%.

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The implication is significant: agriculture is increasingly being shaped by what consumers demand, rather than only by the traditional objective of producing more staple grains.

High-value sectors drive growth

Agricultural growth is also becoming more diversified. According to the study, agricultural GVA growth averaged 2.71% during 1967–1995 and 2.98% during 1996–2014, before rising to 4.51% during 2015–2025.

The composition of growth has changed alongside the pace of growth. While foodgrains were the dominant driver during the earlier period, horticulture, dairy, fisheries and poultry have expanded rapidly in recent years.

Between 2015 and 2025, milk production increased by about 10 million tonnes annually, while fisheries and poultry also recorded strong growth. Rice and wheat production continued to increase, supported particularly by higher yields.

This means diversification is not about moving away from cereals. It is about building a broader agricultural economy in which foodgrains coexist with higher-value and demand-responsive sectors.

Technology moves beyond higher yields

The technology agenda is changing as well. Between 1969 and 2025, India released 7,206 crop varieties, including 3,236 during 2014–2025. Of the varieties released during the latter period, 2,996 were identified as climate-resilient and 187 as biofortified.

The shift reflects a broader definition of agricultural productivity. Farmers increasingly need technologies that can raise yields while reducing risks from drought, pests, diseases and climate variability and improving resource-use efficiency.

Digital technologies are adding another layer to this transformation. Remote sensing, geospatial systems, digital advisory platforms, pest surveillance and initiatives such as AgriStack are increasingly being integrated into agricultural governance and farmer services.

Value chains become critical

The transformation is not limited to what happens on farms. Markets, infrastructure, finance, cooperatives and food processing are becoming increasingly important to agricultural performance.

The dairy sector illustrates this institutional expansion. Dairy cooperative societies increased from 13,284 in 1981 to 235,877 in 2024, while annual milk procurement rose from 0.94 million tonnes to 24.16 million tonnes.

Investment and agricultural finance have also expanded substantially. Gross capital formation in agriculture increased from Rs 427 billion in 1967 to Rs 4,908 billion in 2024, while outstanding agricultural credit rose from Rs 470 billion to Rs 16,234 billion over the broader period covered by the study.

These trends underline a crucial change in the economics of farming: farmer incomes increasingly depend not only on production, but also on how efficiently farmers are connected to markets, finance, infrastructure and consumers.

Better storage and cold chains can reduce losses. Processing can increase the value of farm output. Efficient logistics can widen market access, while finance can support investment in technology and diversification.

Policy must evolve with the farm economy

The changing structure of agriculture also requires a shift in policy priorities. The report points towards greater emphasis on resource conservation, diversification, climate resilience, market development, value addition and farmer incomes, while retaining food security as a core objective.

This will require stronger storage and cold-chain infrastructure, improved wholesale markets, greater processing capacity and better logistics. Agricultural policies will also need closer coordination across water, energy, climate, trade, nutrition and rural development.

India’s agricultural transformation is therefore moving beyond the Green Revolution’s central objective of producing more grain.

The next phase is about producing more value, greater diversity and better nutrition while using land and water more efficiently.

The Green Revolution created the foundation for food security. The expansion of horticulture, livestock and fisheries has broadened the agricultural economy. The emerging challenge is to connect these gains through better technology, infrastructure, markets and institutions.

For Indian agriculture, the defining question is increasingly not simply how much more can be produced, but how much more value can be created from every hectare, every unit of water and every link in the farm-to-consumer chain.



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