"Consumption demand is increasing as India's per capita GDP is expected to increase by 320 per cent in the next 20 years...agricultural output (at farm-gate prices) could grow from Rs 12.69 lakh crore to Rs 29.28 lakh crore by 2030. Processing could grow from Rs 1.1 lakh crore to Rs 5.65 lakh crore by 2030 while India's food exports could grow from Rs 1.4 lakh crore to Rs 7.72 lakh crore by 2030," the report, which was released today, said.
The new Food and Agriculture Integrated Development Action (FAIDA) report focuses on mango, banana, potato, soya bean and poultry which represent categories that are likely to drive the next wave of growth.
The report spells out a 12-point agenda that recommends improvement in yield and farming technology, removal of supply side barrier in using scientific inputs and practices, increased farmer-industry partnerships, favourable policy for agricultural marketing and promoting food processing business by branding the products, among others.
Yields can grow by improving quality inputs, extending irrigation facilities, farm mechanisation, and enhanced practices during sowing, farming and harvesting, it said.
"It is now imperative that India upgrade its agricultural practices and techniques, as well as well as accelerate growth in allied business fields such as food processing, in order to support the countrys consumption demand changes over the next 20 years," Adil Zainulbhai, Chairman of McKinsey & Company, India said while releasing the report.
The report said Indian farmers have matched demand growth dynamics in the past decade, the country is yet to realise full potential in terms of yield, processing and exports as food habits are now changing.
Despite India being world's third largest agricultural producer, it doesn't rank amongst the top five exporters said Barnik Chitran Maitra, Partner, McKinsey & Company.
Maitra said food habits have changed over the past decade and Indian spend on cereals has come down and it has shifted to higher order nutrients such as milk, meat, fruits and vegetables due to high disposable income, adding, the change will accelerate and deepen further.
Besides, the report has also suggested launching a agriculture and food export mission, attracting private capital and global expertise, a pan-India infrastructure for sorting, harvesting, packaging, transportation and storage.
Among others, the report has also recommended setting up mega hubs to allow companies procure, store and process and export their products from a single location, setting-up world class agriculture universities and setting-up agri-business focused angel and capital funds as a PPP model between central and state governments and private capital providers.
Zainulbhai said most of the cold chain infrastructure investment in the country has been done by private sector, but government needs to play a significant role.