Agribusiness is a combination of the words "agriculture" and "business" and refers to any business related to farming and farming-related commercial activities. Agribusiness involves all the steps required to send an agricultural good to market, namely production, processing, and distribution.
The importance of agriculture in India:
- More than 60% to 70% of the Indian population is dependent on agriculture and its allied activities for their livelihood
- The agricultural sector provides employment to more than 52% of total labour of the country
- The contribution of agriculture to India’s total GDP (Gross Domestic Product) is between 14% to 15%.
The main causes of a surge in the Agribusiness in the past few years:
- With the consistent rise of E-commerce, home delivery grocery stores have created an opportunity for agriculture enthusiasts to start their own farms with the help of agriculture experts
- The ever growing population has increased the demand for food produce
- Start ups have come up with the innovative idea of growing organic produce in terraces and balconies of homes
- The growing awareness and popularity of high quality organic farm produce that sells at high value in the market.
The agriculture business can be predominantly categorised into three main sectors mentioned below:
- Production resources, which include seed, feed, fertilizer, energy, equipment, machinery and the likes
- Agricultural commodities like raw or processed items of food and fibre
- Facilitative services like insurance, marketing, credit, processing, storage, packaging, transportation, etc.
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