Agriculture business in India refers to a wide range of agricultural enterprises engaged in production of crops or livestock, both individually and collectively.
- New agricultural resources and methods are being developed through research and development
- Management or ownership of farmland and livestock facilities used for agricultural production
- Agricultural supplies and equipment, such as machinery, feed, and fertilizers, are manufactured or distributed
- Agricultural products are processed or distributed
As the ultimate product of all agricultural operations, food or fibers are the ultimate result. Due to its size, agriculture business in India has a significant economic impact on the economy; it accounts for nearly twice as much of all manufacturing (measured in total assets); it employs 37 percent of the workforce; and it represents 40 percent of all consumer spending.
As a result of the dual role of suppliers and purchasers of agricultural commodities, the term “agribusiness” was coined in the 1950s by John Herbert Davis and Ray A. Goldberg. It is important for businesses serving agriculture to rely on farmers for markets and supplies. Farming would not be possible without businesses that manufacture farm supplies, store, process, and merchandise farm commodities.
A FAMILY FARM TO AN AGRIBUSINESS
There was a self-contained agriculture industry in the early 19th century. Most farm families produced their own food, fuel, shelter, draft animals, feed, tools, implements, and clothing. Only a few necessities had to be bartered for or purchased off the farm. Virtually all farm commodities were produced, processed, stored, and distributed by the farm family. In the following years, however, agriculture evolved from self-sufficiency to intricate interdependence with other sectors of the economy, especially the processing and distribution of food and fiber products and the manufacture of production supplies.
As a result of the agriculture business in India approach, farming problems are examined in a more comprehensive way. Farmers have been freed from agriculture to work in nonfarm occupations, including the armed forces during wars. As a result, the economy has grown and developed tremendously and living standards have improved greatly.
Each farm unit and business unit in the agriculture business industry is an independent entity, free to make its own decisions, and it comprises several million units. In agribusiness, hundreds of trade associations, commodity associations, farm associations, quasi-research organizations, conference bodies, and committees are involved, all of which are focused on their own objectives. In addition to its involvement in research, regulation of food and fiber operations, and ownership and trading of farm commodities. Another sector of agribusiness is land-grant colleges, which conduct teaching, experimentation, and extension services. An agribusiness exists as a vast mosaic of decentralized entities, functions, and operations related to food and fiber.
Agriculture evolved into agribusiness, which has brought numerous advantages to the country. In addition to reducing drudgery for workers, this also improves food and fiber quality, increases the variety of products, improves nutrition, and increases people’s mobility. Over the last 150 years, the country’s economic growth and development have been based on the release of farm manpower and the creation of new, off-the-farm jobs. The growth and development of this industry have been driven by higher worker productivity, resulting in new products, new jobs, and greater consumer purchasing power, which, in turn, spurs creativity, innovation, and wealth.
UTILIZING NEW TECHNOLOGIES
An important characteristic of agribusiness is its continuous quest for new technologies. Among the well-known examples are satellite-based global positioning systems (GPS) for managing croplands and computer systems for managing various business functions. By reducing waste, saving time, and improving output, these technologies enhance agricultural efficiency.
Among the many high-tech solutions used in crop agriculture are precision or site-specific farming methods. In these methods, crop fields are systematically tested for variations in soil composition and fertility. In order to maximize yield and minimize waste, the on-board computer on the farm machinery uses GPS equipment to determine where seed and fertilizer should be allocated in the fields based on the data stored in the computer.
In addition, agribusiness conducts scores of research and development projects to find new technology and make better use of existing technologies. Research and development work includes the development of genetically engineered crops, improved pest resistance, biotechnology in agriculture, and the formulation of agricultural pharmaceuticals. The majority of agribusiness research is funded by the private sector, despite considerable government and university support.
EDUCATION IN AGRIBUSINESS
Agribusiness courses and degrees are available at many colleges and universities. Graduate programs lead to an MBA in agribusiness or a master’s degree in agribusiness. Classes typically cover the following topics:
- Management of agribusiness
- Marketing for agricultural industries
- Management of finances
- Trading commodities
- Technological advancements
In these programs, students learn about best practices in a wide range of agribusiness fields, in addition to developing business acumen.