Contract Farming Resource Centre

Agri-business: Present status and future prospects

Year 2006

India, being primarily agriculture-based economy, has come a long way from conventional agriculture to advanced agriculture towards realizing the tremendous potential for commercial and export-oriented agri-business. At present, commercial agriculture emphasizes on high productivity and the production is made for markets. Indian farmers are vying with global market. Many internationally repurted agri-business corporations either alone or through joint ventures have entered agri-business which in turn have an impact on rural society in the guise of employment opportunities, absorption of labour force, building economic base among rural folds resulting in better standard of living. Agri-business has an impact on different areas of agriculture like food processing, horticulture and seed business. Seed is very vital and dynamic instrument for increasing agricultural production, which in turn, has a far-reaching bearing on the economy. Agri-business is faced with some constraints like poor linkage between farmer and industry fragmented landholdings, poor cold storage and transport system. However, these constraints can be surmounted by encouraging farmer-industry cooperation and by way of adopting contract farming system, establishment of agro-industrial complexes, improvement of cold storage and infrastructure amenities, involvement of information technology and setting up of agri-clinic and agri-business centres.