Five Steps to Turn Around India’s Horticulture Sector

India, the world’s second largest producer of fruits and vegetables, accounts for just 2% of the global horticultural trade. To capitalize on its horticultural potential, India needs to adopt a strategic, multi-pronged approach that strengthens its foundations and opens up new opportunities. Given its agricultural potential and ideal climate zones, the country needs to increase horticultural production and improve access to nutritious food for other Indians, leveraging the advantage that horticulture gives to our smallholder structure.

To do this, the power of Farm Producer Organisations (FPOs) must first be fully harnessed. FPOs can enable economies of scale, increase operational efficiency, promote best practices, connect farmers with (international) buyers, secure fair prices, minimise the influence of middlemen and build the capacity of farmers to cope with the complexities of modern agriculture. I have been fortunate to witness this transformation first-hand over the last few years. Purandar Highlands, an FPO founded by progressive smallholder farmers in Purandar, near Pune, uses locally grown figs and has done well in both domestic and international markets. Similarly, Sahyadri Farms FPO has developed a comprehensive infrastructure – including an advisory team, a packing house, a cold storage facility and technology – to reduce costs and optimise resources. They mentor farmers in producing high-quality commodities that meet global standards and establish crop-specific value chains. FPOs can also ensure consistency in products, such as variety, size and maturity level, which is a prerequisite for successful processing and trading.

Second, improving the quality and consistency of the product to meet international standards. We need to improve the quality of our produce to meet international standards. To do this, we need to bridge the gap in extension services and ensure that farmers are equipped with the latest agronomic knowledge and sustainable farming techniques. Precision farming methods, integrated pest management and responsible use of crop protection products can increase yields and maintain quality while minimising environmental impact. Strengthening post-harvest infrastructure – including storage facilities and processing units – is essential to reduce losses and increase the value and marketability of horticultural produce. Trade agreements that reduce tariff and non-tariff barriers that have hampered Indian exports will also be beneficial.

Third, a strong regulatory framework and technology for safety and quality. Compliance with international safety and quality standards is key to establishing a strong presence in foreign markets. India also needs to adopt technologies that can propel the horticulture sector forward. Supporting and investing in agro-tech through subsidies or tax incentives will enable the adoption of precision farming technologies, IoT-based monitoring systems, water management and drones for crop management. This will improve productivity, efficiency and resilience to climate and market changes.

Fourth, integrated logistics and supply chain architecture. Effective cold chains are essential to maintaining the safety and nutritional value of food products in transit, especially when they are shipped to global markets where stringent quality, freshness and chemical residue checks are in place. This can be achieved with a robust cold chain that includes pre-cooling facilities, refrigerated transport and efficient packaging technologies. Increased cold chain capacity allows farmers to adjust supply based on fluctuations in demand – a key advantage when exporting. Government-led programmes such as the Gati Shakti Mission and the Dedicated Freight Corridor of Indian Railways should link the cold storage and transport elements with real-time market data, and provide farmers with insights into market demand, prices and available logistics services.

Fifth, a greater role for public-private partnerships (PPPs). Lack of adequate insurance can expose farmers to risk, affect their financial stability and discourage them from growing high-value crops. Affordable and tailored insurance products can mitigate horticulture risks and encourage farmers to invest in quality improvement and compliance with export standards. The Cluster Development Programme (CDP) for horticulture is a good example of a PPP, where the government plays a facilitating role and private companies leverage their operational excellence to create specialized clusters focused on horticultural crops with export potential.

India has the real potential to become a horticulture powerhouse. It can do so with solid, coordinated efforts and innovative strategies that enable equitable, sustainable growth of the sector and prioritize the well-being of farmers.

Simon Wiebusch is President of Bayer South Asia and Vice President, Managing Director and CEO of Bayer CropSc. The views expressed are personal.