Report Description

Forecast Period


Market Size (2024)

USD 9.07 billion

CAGR (2025-2030)


Fastest Growing Segment


Largest Market

West India

Market Size (2030)

USD 12.23 Billion


Market Overview

India Agricultural Commodities Market was reached to USD 9.07 billion by 2024 and is anticipated to project steady growth to reach USD 12.23 billion in 2030 with a CAGR of 5.15%.

The agricultural commodities market in India boasts a remarkable diversity, encompassing a wide array of farm products ranging from staple grains to exotic fruits and spices. This rich variety not only caters to the diverse needs of the domestic population but also positions India as a significant player in international markets. From traditional wholesale markets to digital platforms like the National Agriculture Market (eNAM), the market operates through various channels, providing farmers with multiple avenues to sell their produce and connect with buyers.

eNAM, a pan-India electronic trading portal, has emerged as a game-changer in the agricultural commodities market. It facilitates trading while empowering farmers with real-time market data and price trends, enabling informed decision-making. By bridging the gap between farmers and buyers, eNAM streamlines the trading process and ensures fair prices for agricultural commodities.

However, the market has encountered challenges, including the suspension of futures trading in key farm commodities by the Securities and Exchange Board of India (SEBI) in 2021. This move aimed to curb speculation and price volatility but sparked debates about the role of futures trading in agricultural markets. India's agricultural commodities market is intricately connected with global markets, with the country serving as a net exporter of commodities like dairy products. This dynamic interaction necessitates a delicate balance between domestic interests and global trade policies to ensure food security and economic stability.

The impact of futures trading on agricultural commodity prices remains a contentious issue. While proponents argue that it provides price signals and risk management tools, critics raise concerns about its potential inflationary effects. Government and regulatory bodies continue to monitor and evaluate the impact of futures trading, striving to strike a balance that benefits all stakeholders.

The agricultural commodities market in India is a vibrant and evolving sector with numerous opportunities and challenges. With the right policies and initiatives, it has the potential to significantly contribute to economic growth and food security. Continuous support and innovation are essential to ensure the well-being of farmers, consumers, and the overall economy. 

Key Market Drivers

Growth in Population

India's population surge, exceeding 1.3 billion, has triggered a pronounced rise in food demand, accentuating the imperative of ensuring food security for its populace. As the world's second most populous nation, India confronts the formidable task of fortifying its agricultural sector to meet this escalating demand. This entails bolstering the production of a diverse array of agricultural commodities encompassing crops, livestock, and dairy products on a substantial scale. Concomitantly, the burgeoning populace has intensified the demand for irrigation equipment, accentuating the challenges of food scarcity and water paucity. Addressing these pressing concerns mandates the swift adoption of efficient irrigation techniques and technologies. Consequently, there has been a notable upsurge in the requisition for irrigation equipment, catalyzing growth in India's agricultural commodities market.

India's agricultural trade is distinguished by its diversity, encapsulating a broad spectrum of products ranging from raw agricultural commodities to processed and ready-to-consume items. The proportion of India's agricultural exports within its total exports has steadily risen, partially propelled by burgeoning domestic demand spurred by population expansion. India's demographic upsurge serves as a pivotal impetus propelling the expansion of its agricultural commodities market. As the populace burgeons, so does the need for a varied and adequate food supply, underscoring the imperative for perpetual innovation and augmentation within the agricultural sector. Hence, discerning and comprehending the ramifications of population escalation holds paramount significance for the enduring advancement and sustainability of India's agricultural commodities market.

Surge in Technological Advancements

Technological advancements are reshaping the landscape of the Indian agricultural commodities market, ushering in an era characterized by heightened efficiency and sustainability. Among the notable innovations driving this transformation is the fusion of predictive analytics and artificial intelligence (AI), which are swiftly emerging as pivotal catalysts for optimizing commodities trading. By leveraging these technologies, traders are empowered to make informed decisions grounded in data-driven insights, thus minimizing risks and maximizing profitability. 

Technological breakthroughs have profoundly impacted farming methodologies, ushering in a paradigm shift towards heightened productivity. Significantly, there have been remarkable strides in seed quality, irrigation practices, and fertilization techniques, all of which have been instrumental in enabling farmers to achieve elevated yields. For instance, the adoption of precision farming methodologies and intelligent irrigation systems has revolutionized water management practices, effectively mitigating wastage and fostering sustainable agricultural practices.

Technology is spearheading the development of eco-friendly solutions, catering to the burgeoning demand for sustainable and organic products. Advances in agricultural adjuvants are driving efficiency while promoting the production of environmentally benign alternatives. These cutting-edge innovations not only foster sustainable farming practices but also resonate with the increasing consumer inclination towards organic and eco-friendly commodities.

The convergence of technology and agriculture has unlocked a myriad of opportunities, facilitating the enhancement of efficiency, the propagation of sustainability, and the fulfillment of evolving consumer preferences. As the agricultural sector continues to embrace technological innovations, the future holds immense promise for a more sustainable and environmentally conscious approach to farming. By harnessing the power of technology, stakeholders across the agricultural value chain stand poised to usher in a new era of prosperity, resilience, and environmental stewardship in Indian agriculture.

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Key Market Challenges

Disruption in Supply Chain

India's agricultural sector, which plays a crucial role in the country's economy, heavily relies on a complex network of supply chains that connect farmers with consumers. This intricate system ensures the seamless flow of agricultural commodities from farms to markets, ensuring food security and economic stability. However, this network is not without its challenges. Disruptions caused by various factors have posed significant hurdles for the agricultural supply chains in India. Climate change, policy changes, and most recently, the COVID-19 pandemic, have all contributed to these challenges. These disruptions have highlighted the vulnerability of the system and the need for proactive measures to safeguard it.

When the supply chain gets disrupted, it sets off a chain reaction of problems. Firstly, it leads to delays in transporting agricultural commodities from farms to markets, which can result in spoilage of perishable goods. This not only leads to financial losses for farmers but also affects the availability of fresh produce for consumers. Secondly, these disruptions often lead to price volatility, further impacting both farmers and consumers. Farmers may face significant income losses due to sudden price drops, while consumers may find essential food items becoming unaffordable due to price hikes. The recent COVID-19 pandemic vividly demonstrated the vulnerability of India's agricultural supply chains. The nationwide lockdown, imposed to curb the spread of the virus, resulted in transportation restrictions and labor shortages, severely affecting the movement of agricultural commodities. This led to a challenging situation where farmers struggled to sell their produce, while consumers faced shortages and price hikes.

Addressing these challenges and strengthening the resilience of India's agricultural supply chains requires a multi-faceted approach. It involves implementing measures to mitigate the impact of climate change, formulating stable and supportive policies, and investing in infrastructure and technology. By doing so, India can ensure the smooth functioning of its agricultural sector, thereby benefiting farmers, consumers, and the overall economy.

Key Market Trends

Rising Impact of Climate Change

Recent research has primarily focused on the roles of temperature and precipitation in agricultural impacts of climate change. It is evident that the majority of Indian farmers have perceived a noticeable rise in temperature, erratic weather patterns, and a decrease in rainfall. These climatic changes align with the predictions made by global climate models, pointing to an alarming reality that we are already witnessing the effects of climate change.

Studies have revealed that increasing temperatures and the changing pattern of rainfall have a substantial impact on food production. As the planet continues to heat up, weather patterns evolve, influencing the outlook for key agricultural commodities. In summary, numerous studies have assessed and found that climate change will increasingly pose a detrimental impact on crop productivity as levels of warming progress.

Beyond just temperature and rainfall, other aspects of climate change also pose significant risks. For instance, the rise in sea levels could lead to the salinization of water resources and soil, thereby affecting agricultural productivity. Furthermore, critical agricultural infrastructure, such as irrigation systems, could be at risk from extreme weather events.

The impact of climate change is not confined to India alone. It will have a profound influence on agricultural commodity production globally, affecting plant growth and yield due to elevated CO2 levels, higher temperatures, and altered rainfall patterns. This global shift has the potential to fundamentally change the dynamics of international trade in agricultural commodities, including the market for India's agricultural exports.

With the increasing urgency to address climate change, it becomes imperative to delve deeper into the intricate details surrounding its impacts on agriculture. By understanding these details, policymakers, scientists, and stakeholders can work together to develop strategies and solutions that can mitigate the adverse effects of climate change on our food systems and ensure a sustainable future for agriculture.

Segmental Insights

Type Insights

Based on the category of type, the soft segment emerged as the dominant player in the Indian market for agricultural commodities in 2024. Soft commodities such as rice, wheat, and pulses form the staple diet of a large majority of the Indian population. These essential food items provide sustenance and nutrition to millions of people across the country. The demand for these commodities remains consistently high throughout the year, driven by the ever-growing population and dietary preferences. As a result, they play a pivotal role in shaping India's agricultural commodities market. To support the production of these crucial commodities, the Indian government has implemented a range of policies and subsidies. One notable measure is the introduction of Minimum Support Prices (MSP) for certain crops. These MSPs ensure that farmers receive a fair and guaranteed minimum profit for their produce, thereby incentivizing and promoting the cultivation of these commodities. Such initiatives aim to maintain a steady and reliable supply of soft commodities to meet the nation's food requirements.

In addition to catering to the domestic market, India also holds a significant position as an exporter of agricultural commodities, particularly rice and wheat. The quality and quantity of Indian produce have garnered international recognition, leading to a surge in global demand for these commodities. This global demand, coupled with India's efficient production capabilities, further strengthens the dominance of soft commodities in the market. It is worth noting that the dominance of soft commodities is also influenced by the dynamics of local markets. Dominant traders exert considerable control over the prices of physical crops, thereby shaping the market trends and further reinforcing the prominence of these commodities. Their influence, along with other factors such as weather conditions and government policies, contributes to the intricate and ever-evolving landscape of India's agricultural commodities market.

Product Type Insights

The rice segment is projected to experience rapid growth during the forecast period. One of the main reasons for rice's domination in India's agricultural market is the consistent stocks available, which contributes to the price stability of this commodity. This stability is crucial for both farmers and consumers, as it ensures a steady supply of rice at affordable prices throughout the year. Additionally, the extensive cultivation techniques and expertise developed by Indian farmers have played a significant role in maintaining the quality and quantity of rice production. India is one of the world's largest exporters of rice. Global prices for rice have risen due to lower production and export restrictions among major suppliers, providing India with a competitive edge. This advantage is further enhanced by the diverse varieties of rice cultivated in India, ranging from aromatic Basmati rice to the short-grain Sona Masoori rice, catering to the preferences of consumers worldwide. The meticulous processing and packaging methods employed by Indian exporters also contribute to the superior quality of Indian rice in the international market.

As the second-largest producer of rice in the world, domestic demand in India remains high, further driving the dominance of rice in the market. The cultural significance of rice in Indian cuisine, where it serves as a staple food, fuels the demand for rice across the country. Moreover, the government's initiatives to promote rice consumption and improve agricultural practices have bolstered the growth of the rice industry in India. This sustained demand and support from both the government and consumers have solidified rice's position as a key player in India's agricultural landscape.

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Regional Insights

Based on the region, West India emerged as the dominant force in the India Agricultural Commodities Market, capturing the largest market share by value. The region's varied geography, including fertile plains, hilly terrain, and extensive coastal areas, provides an ideal environment for cultivating a diverse range of crops. Gujarat, a state in West India, has particularly stood out for its progressive agricultural practices, contributing significantly to the region's economic prowess.

West India has strategically diversified its agricultural portfolio, emphasizing higher-value commodities like premium fruits and vegetables. This shift has bolstered the region's economic standing and positioned it as a key player in both domestic and international markets. Investments in advanced irrigation systems, expanded transport networks, and modern market infrastructure have facilitated improved market access, fostering greater trade opportunities and boosting agricultural output.

The region has also witnessed improved market integration over time, evident in the diminishing cross-market price differentials. This trend highlights the growing connectivity between local and national markets, streamlining trade flows and enhancing West India's agricultural competitiveness. Through leveraging its diverse geography, embracing innovation, and investing in market infrastructure, West India continues to thrive as a prominent agricultural hub. Its efforts drive economic growth and contribute significantly to ensuring food security nationwide.

Recent Developments

  • In 2022, the renowned Indian conglomerate ITC Limited joined hands with the prestigious Tata Institute of Fundamental Research (TIFR) in a strategic partnership. This groundbreaking collaboration aims to revolutionize the agricultural industry by spearheading the development of cutting-edge technologies specifically designed for the processing and storage of agricultural commodities. With a strong focus on innovation, this collaborative effort seeks to tackle the pressing challenges of reducing post-harvest losses and enhancing the overall quality and shelf life of agricultural products. By combining their expertise and resources, ITC Limited and TIFR are poised to pave the way for a more sustainable and efficient agricultural ecosystem, benefiting farmers, consumers, and the broader society alike.
  • In 2022, a memorandum of understanding was signed between the Chittagong Stock Exchange (CSE) and India's Multi Commodity Exchange (MCX) to establish Bangladesh's inaugural commodity exchange. This initiative marks a significant milestone in Bangladesh's developmental journey, with the aim of addressing challenges in price discovery and risk management across diverse commodity segments. MCX, established in 2003, has been instrumental in facilitating price discovery and risk mitigation across various sectors, including industrial metals, energy, and agricultural commodities. The establishment of the commodity exchange is expected to benefit rural farmers by ensuring fair pricing mechanisms and fostering the growth of the agricultural sector. This strategic collaboration reflects a timely decision to harness the potential of commodity exchanges in driving economic development and enhancing market efficiency within Bangladesh.

Key Market Players

  • Multi Commodity Exchange of India Ltd.
  • Bombay Stock Exchange Ltd.
  • National Commodity & Derivatives Exchange Limited
  • Indian Commodity Exchange Ltd.
  • Agricultural & Processed Food Products Export Development Authority

By Type

 By Product Type

By Region

  • Hard
  • Soft
  • Soybeans
  • Corn
  • Wheat
  • Rice
  • Cocoa
  • Coffee
  • Cotton
  • Spices
  • Others
  • North India
  • East India
  • West India
  • South India


Report Scope:

In this report, the India Agricultural Commodities Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

  • India Agricultural Commodities Market, By Type:

o   Hard

o   Soft

  • India Agricultural Commodities Market, By Product Type:

o   Soybeans

o   Corn

o   Wheat

o   Rice

o   Cocoa

o   Coffee

o   Cotton

o   Spices

o   Others

  • India Agricultural Commodities Market, By Region:

o   North India

o   East India

o   West India

o   South India

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the India Agricultural Commodities Market.

Available Customizations:

India Agricultural Commodities Market report with the given market data, Tech Sci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

  • Detailed analysis and profiling of additional market players (up to five).

India Agricultural Commodities Market is an upcoming report to be released soon. If you wish an early delivery of this report or want to confirm the date of release, please contact us at [email protected]               

Table of content

1.    Product Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.2.1.     Markets Covered

1.2.2.     Years Considered for Study

1.2.3.     Key Market Segmentations

2.    Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Applications

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3.    Executive Summary

3.1.  Overview of the Market

3.2.  Overview of Key Market Segmentations

3.3.  Overview of Key Market Players

3.4.  Overview of Key Regions/Countries

3.5.  Overview of Market Drivers, Challenges, Trends

4.    India Agricultural Commodities Market Outlook

4.1.  Market Size & Forecast

4.1.1. By Value

4.2.  Market Share & Forecast

4.2.1. By Type (Hard, Soft)

4.2.2. By Product Type (Soybeans, Corn, Wheat, Rice, Cocoa, Coffee, Cotton, Spices, Others)

4.2.3. By Region

4.2.4. By Company (2024)

4.3.  Market Map

4.3.1. By Type

4.3.2. By Product Type

4.3.3. By Region

5.    North India Agricultural Commodities Market Outlook

5.1.  Market Size & Forecast          

5.1.1. By Value

5.2.  Market Share & Forecast

5.2.1. By Type

5.2.2. By Product Type

5.2.3. By State (Top 3 States)

6.    South India Agricultural Commodities Market Outlook

6.1.  Market Size & Forecast          

6.1.1. By Value

6.2.  Market Share & Forecast

6.2.1. By Type

6.2.2. By Product Type

6.2.3. By State (Top 3 States)

7.    West India Agricultural Commodities Market Outlook

7.1.  Market Size & Forecast          

7.1.1. By Value

7.2.  Market Share & Forecast

7.2.1. By Type

7.2.2. By Product Type

7.2.3. By State (Top 3 States)

8.    East India Agricultural Commodities Market Outlook

8.1.  Market Size & Forecast          

8.1.1. By Value

8.2.  Market Share & Forecast

8.2.1. By Type

8.2.2. By Product Type

8.2.3. By State (Top 3 States)

9.    Market Dynamics

9.1.  Drivers

9.2.  Challenges

10.  Market Trends & Developments

10.1.              Recent Developments

10.2.              Product Launches

10.3.              Mergers & Acquisitions

11.  Policy & Regulatory Landscape

12.  India Economic Profile

13.  Competitive Landscape

13.1.          Multi Commodity Exchange of India Ltd.

13.1.1.  Business Overview

13.1.2.  Company Snapshot

13.1.3.  Products & Services

13.1.4.  Current Capacity Analysis

13.1.5.  Financials (In case of listed)

13.1.6.  Recent Developments

13.1.7.  SWOT Analysis

13.2.          Bombay Stock Exchange Ltd.

13.3.          National Commodity & Derivatives Exchange Limited

13.4.          Indian Commodity Exchange Ltd.

13.5.          Agricultural & Processed Food Products Export Development Authority

14.  Strategic Recommendations

15.  About us & Disclaimer

Figures and Tables

Frequently asked questions


The market size of the India Agricultural Commodities Market is estimated to be USD 9.07 billion in 2024.


The soft segment demonstrated significant dominance in 2024. This is because of factors like high domestic demand, government support, export opportunities, market control, reforms, and changing consumer preferences.


West India dominated the market with a revenue share in 2024. This can be attributed to its geographical advantages, successful crop diversification, infrastructure development, market integration, government support, and historical factors.


Growth in population and surge in technological advancements are the major drivers for the India Agricultural Commodities Market.


Sakshi Bajaal

Business Consultant
Press Release

India Agricultural Commodities Market to Grow with a CAGR of 5.15% through 2030

May, 2024

Growth in population and surge in technological advancements are factors driving the India Agricultural Commodities Market in the forecast period 2026-2030.