Transforming Indian Agriculture By 2047 | Amul, ITC, CSEP At BT India@100

Summary

In a thought-provoking panel discussion, industry leaders explore the future of agriculture in India. They highlight the importance of agriculture as the backbone of the economy, with a focus on the role of farmers, especially women, in driving the sector forward. Topics covered include the potential of Indian agriculture to become export-oriented, the significance of non-farm income in rural households, and the impact of policy reforms. The panel also discusses the challenges and opportunities in transforming agriculture through technological advancements, value chains, and global demand for quality products like protein-rich dairy.

Takeaways

• 😀 Agriculture is not the same as rural income. Only 33-35% of rural households derive most of their income from agriculture; the rest rely on non-agricultural sources like business, services, and salaried work.
• 😀 Women are key drivers in Indian agriculture, especially in dairy farming, where they manage a large portion of livestock and animal husbandry activities.
• 😀 Indian agriculture has the potential to become globally competitive by shifting from a production-driven model to a demand-responsive, value chain model that prioritizes quality, traceability, and logistics.
• 😀 Successful agricultural policy and reform require last-mile facilitation, including the involvement of professionals at the grassroots level and community support systems.
• 😀 There is a growing demand for protein, especially among India’s youth, gym-goers, and health-conscious individuals. Amul's whey protein products are helping meet this demand while promoting the nutritional benefits of dairy.
• 😀 India is the world’s largest producer of milk and dairy products, with Amul leading the way. As global milk production rises, India aims to become a major dairy supplier globally, with Amul playing a pivotal role in this expansion.
• 😀 The cooperative model of organizations like Amul ensures that both farmers and consumers benefit. Amul’s priority is providing maximum value to producers, unlike profit-driven companies that focus on investor returns.
• 😀 Agricultural income taxation should be considered for higher-earning farmers, particularly those earning more than ₹25 lakh per annum. This would help bridge the income inequality gap in rural areas.
• 😀 Policies designed to improve the livelihoods of rural populations must recognize the diversity in rural income sources and should be adaptable to varying local contexts, such as landless farmers or those relying on non-farming activities.
• 😀 To compete globally, Indian agriculture must not only increase production but also ensure that products are of the highest quality and meet international market standards, such as the IPM-certified spices and food-safe shrimp being exported today.

Q & A

What is the primary role of agriculture in the Indian economy according to the panel?

Agriculture is considered the backbone of the Indian economy, supporting 55–60% of the population and forming the livelihood base for millions of rural households.

Why does Mr. Shukla emphasize that rural India is not the same as agricultural India?

He points out that only about 33–35% of rural households derive their major income from agriculture, while 65% rely on non-agricultural sources such as business, salaried work, and other occupations.

What role do women play in the Indian dairy sector according to Mr. Maha?

Women typically run dairy businesses, managing agriculture and animal husbandry activities, making them central to the livelihood and labor structure in the sector.

How has Amul contributed to the protein revolution in India?

Amul has developed high-protein products like whey protein concentrates, high-protein milk, lassi, and buttermilk, raising awareness of nutritional needs and catering to both gym-goers and the general population.

What shift in agricultural export strategy does Mr. Shivakumar suggest?

He recommends moving from a production-driven model to a demand-responsive value chain, focusing on quality alignment with global markets, efficient logistics, cluster-based production, and producing what is required rather than exporting only surplus.

How important is last-mile facilitation in agricultural and rural policy implementation?

It is crucial. Effective last-mile facilitation through professionals and community resource persons ensures that programs reach women farmers and rural households, enabling collectives and cooperatives to scale successfully.

Should high-income farmers be subject to taxation according to the discussion?

Yes, the panel suggests considering reasonable taxation for wealthier farmers, particularly those earning above 25 lakh rupees annually, while ensuring protection for small and subsistence farmers.

What is the difference between a cooperative model like Amul and private companies in terms of profit and pricing?

Amul prioritizes paying fair prices to farmers and providing value-for-money products to consumers with low margins, unlike private companies that maximize profits for shareholders.

What examples of export-oriented crops are already showing success in India?

Crops like spices with food-safe IPM certifications and shrimp are already being produced in a market-focused, globally competitive manner, demonstrating the potential for cluster-based, quality-driven exports.

Why does Mr. Sinayan stress the importance of focusing on primary units in policy implementation?

Because strong local units, such as women’s collectives and community resource persons, form the foundation for scaling national policies effectively, ensuring long-term sustainability and impact.

How does Amul plan to expand its global presence despite tariff challenges?

Amul emphasizes its commitment to quality and affordability, targeting international markets with value-added dairy and protein products, leveraging India’s position as the largest milk producer in the world.

What is the significance of income diversification in rural India?

Income diversification reduces dependency on agriculture, stabilizes rural livelihoods, and supports economic resilience, as many rural households derive significant income from non-agricultural activities.