For agri growth in volatile world, look beyond farm gate, Pg11

Key Highlights:

• Global supply chain fragility, highlighted by West Asia tensions, impacts Indian agriculture through input cost increases and logistical disruptions.
• Investments in processing, storage, and market integration can strengthen domestic consumption and global value chain position.
• The India-EU FTA signals a shift towards a value-led growth model, emphasizing regulatory compliance for market access.
• India's agriculture economy, valued at $600 billion, could exceed $1 trillion in a decade with value-added processing and market linkages.

Detailed Insights:

• Deeper integration into global value chains creates diversified linkages, easing vulnerabilities related to input supplies.
• European demand for agri-food is shaped by regulations like food safety audits and sustainability disclosures.
• Indian agribusinesses need to integrate into global agri-value chains, with opportunities in the Middle East, Central and Southeast Asia, and Africa.
• Smallholders and FPOs face disadvantages due to fragmented logistics and limited access to testing infrastructure.
• Public investment in testing infrastructure, certification support, and trade policies can widen participation and reduce exclusion.
• Agribusiness leaders should invest in processing, cold storage, traceability, and long-term buyer engagements.
• Addressing gaps in infrastructure, policy stability, and institutional capability is crucial for inclusive agricultural trade.

Key Concepts Involved:

• FPOs (Farmer Producer Organizations): Organizations formed by farmers to improve their collective bargaining power and access to markets.
• Agri-value chains: The complete set of activities and actors involved in bringing an agricultural product from production to final consumption.
• India-EU FTA: A proposed free trade agreement between India and the European Union to reduce trade barriers.