India, with the second largest arable land in the world, has tremendous production advantages in agriculture. Agriculture hence continues to play a significant role in India's GDP and its performance has ripple effect on other sectors of the economy. The rise in demand, increasing food safety concerns, pressure on improving productivity, supply chain inefficiencies and changing landscape of food and agribusiness has led to increased complexity.

Key trends shaping the Food & Agribusiness industry

Increasing Demand: Demand for Indian food products has accelerated because of increasing acceptability of Indian food products globally and supplemented by a fast growing domestic market owing to food products being a single largest component of private consumption expenditure. Current global favorable consumer trends towards organic foods and herbal products open up new export opportunities for Indian agribusiness firms.
Changing Consumerism & lifestyle needs: Generating a better understanding of changes in income patterns, shift in demographic profile, changing lifestyle needs & food consumption patterns in both domestic and targeted global markets will be the key to leveraging growth opportunities.
Increasing levels of value addition:There has been an increase in levels of value addition through new farming techniques, food processing & introduction of new technology, packaged food, private labelling , food services etc.

Challenges facing the players involved in the Food & Agribusiness industry

Affordability: Due to a variety of factors, processed food prices in India are substantially higher than fresh food as against developed countries where processed foods are cheaper to fresh foods. Reducing costs and making processed foods affordable will be key to developing new markets and increasing consumption.
Unorganized F&A sector:This sector remaining largely un-organized entails significant complex investments, high dependence of promoters on knowledge support & expertise, access to financing & credit availability, management of industry- specific risks, development of in-depth understanding of the international farming practices, technologies, application of food safety norms, global market linkages coupled with a through appreciation of local knowledge and practices.
Infrastructure & Supply side Bottlenecks: Increasing pressure on land availability leading to shortfall in food supply in many crops, low farm yields, wastage of food products in the supply chain, inadequate post-harvest infrastructure among others are some of the supply side constraints. Solving these problems can provide India in becoming a leading food supplier to the world.

How can BMGI help?

BMGI has extensive experience in working with agri-business players across the value chain and has developed rich experience in tackling various issues facing the industry currently. BMGI's expertise in tackling issues related to growth strategies, sustainability and operational efficiency has made it suitably positioned to deliver tangible value to its clients in dealing with cost pressures, partnering, sourcing and delivery capabilities & improving Food & Agribusinesses.

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