IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

High-Value Agriculture in India: Past Trends and Future Prospects

Listed author(s):
  • Sharma, Vijay Paul
  • Jain, Dinesh
Registered author(s):

    Given the declining share of traditional agricultural commodities in production, consumption and trade, horticulture and other non-traditional high-value agriculture represent an important area of potential income growth in rural areas. The high-value agriculture-led-growth strategy also provides significant scope for achieving greater commercialization of smallholder agriculture. Despite the potential, the contribution of high-value agricultural exports is still small but increasing. This paper examines the past and existing performance and identifies likely challenges and opportunities for high-value-agriculture in the country. The findings of the study reveal 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. This shift in dietary patterns across states and income classes is also observed. The results reveal a relatively strong and growing demand for livestock products and fruits and vegetables in both rural and urban areas. The average expenditure as well as share of beverages has increased by about six times in both rural and urban areas. 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. This is reflected in the changing share of high value crops in total value of output from agriculture. The share of high-value commodities/products (fruits and vegetables, livestock products, fisheries) increased from 37.3 percent in Triennium Ending (TE) 1983-84 to 41.3 percent in TE 1993.94 and reached a level of 47.4 percent in TE 2007-08. The trade in high-value products has also increased during the last decade. Overall, fresh fruits and vegetables exports represent a very small share of domestic production and agricultural exports but have increased significantly. 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 percent annually. However, Indian exports face many constraints in major importing countries on account of quality and food safety issues. The rising demand for high-value commodities, particularly fruits and vegetables and livestock products has led to an increase in imports of many commodities like fresh fruits. While there is an opportunity for increasing exports of high-value products but there is a huge and increasing domestic demand which needs to be tapped. The study suggests that a future road map for high-value agriculture development should focus on investment in technology development and dissemination, basic infrastructure, improvement of 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 quality inputs, in particular planting materials for fruits and seeds for vegetables.

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

    File URL:
    File Function: English Version
    Download Restriction: no

    Paper provided by Indian Institute of Management Ahmedabad, Research and Publication Department in its series IIMA Working Papers with number WP2011-07-02.

    in new window

    Date of creation: 26 Jul 2011
    Handle: RePEc:iim:iimawp:10671
    Contact details of provider: Phone: 91 79 2630 7241
    Fax: 91 79 2630 6896
    Web page:

    More information through EDIRC

    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

    in new window

    1. Chand, Ramesh & Raju, S.S. & Pandey, L.M., 2008. "Progress and Potential of Horticulture in India," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 63(3).
    2. Singh, Mahendra, 2008. "Structural Changes in Horticulture Sector in India: Retrospect and Prospect for XIth Five Year Plan," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 63(3).
    3. J. V. Meenakshi & Ranjan Ray, 1999. "Regional differences in India's food expenditure pattern: a complete demand systems approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(1), pages 47-74.
    4. R. Radhakrishna & C. Ravi, 1992. "Effects of Growth, Relative Price and Preferences on Food and Nutrition," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 27, pages 303-323.
    5. Joshi, P.K. & Joshi, Laxmi & Birthal, Pratap Singh, 2006. "Diversification and Its Impact on Smallholders: Evidence from a Study on Vegetable Production," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(2).
    Full references (including those not matched with items on IDEAS)

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:iim:iimawp:10671. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.