A. INDUSTRY STRUCTURE AND DEVELOPMENTS

Global Growth

The global agriculture industry continues to demonstrate long-term growth potential, supported by population growth, rising incomes, urbanisation and increasing demand for food and agricultural products. According to the OECD-FAO Agricultural Outlook 2026 - 2035 , global agricultural production is projected to expand by approximately 13% over the next decade , with productivity improvements expected to remain the primary driver of growth.

Emerging and middle-income economies, particularly in Asia, Sub-Saharan Africa and Latin America , are expected to contribute significantly to the expansion in global agricultural output. India is projected to remain an important contributor to agricultural production growth, supported by increasing productivity, technological adoption and diversification within the sector.

The increasing adoption of modern farming practices, mechanisation, digital agriculture, improved irrigation systems and sustainable agricultural techniques is expected to support productivity enhancement and strengthen the long-term growth prospects of the sector.

Inflation

Inflation and fluctuations in input costs continue to have a significant impact on the agriculture industry. Prices of fertilisers, fuel, energy, transportation and other agricultural inputs directly influence cultivation costs and farm profitability.

While global inflationary pressures are expected to moderate over the medium term, agricultural markets remain sensitive to changes in energy prices, supply-chain disruptions and commodity price volatility. Higher energy and fertiliser costs may increase production expenses and may eventually be reflected in food prices.

In India, agricultural output and food inflation remain closely linked to monsoon conditions and global commodity prices. A favourable agricultural season may support stable food prices, whereas adverse weather conditions or higher international commodity prices could exert upward pressure on food inflation.

Risks & Policy Backdrop

The agriculture industry continues to face risks arising from climate variability, irregular monsoons, extreme weather events, water availability, pest outbreaks and fluctuations in commodity prices. These factors may affect crop production, input costs and overall profitability.

India s foodgrain production has demonstrated significant long-term growth, increasing from 251.54 million tonnes in FY 2015-16 to 357.73 million tonnes in FY 2024-25 , representing an approximate 3.6% compound annual growth rate over the period.

The policy environment remains focused on strengthening food security, improving farm productivity, promoting sustainable agriculture and encouraging technological adoption. Horticulture has emerged as an important growth segment and contributes approximately 33% of India s agricultural GVA , reflecting the increasing diversification and development of the agriculture sector.

B. INDIAN ECONOMY OVERVIEW (FY 2025-26)

Indian agriculture is one of the cornerstones of India s economy and society, providing a livelihood to nearly 55% of the population . The food processing industry alone accounts for 32% of the country s total food market and ranks fifth globally in terms of production, consumption, exports and growth potential. Beyond generating employment for millions of farmers, the sector plays a vital role in rural industrialisation, supply chain development and food security.

India has held the top position in milk production since 1998 , currently accounting for 25% of global output . Over the past decade, milk production has risen by 63.56% , from 146.3 million tonnes in 2014-15 to 239.2 million tonnes in 2023-24 , achieving an average annual growth rate of 5.7% .

C. EXTERNAL ENVIRONMENT & RISKS (FY 2025-26)

The Indian economy continues to remain one of the major growth engines of the global economy, supported by strong domestic consumption, investment activity, infrastructure development and increasing digitalisation.

The IMF currently projects India s real GDP growth at approximately 6.4% for 2026 , while consumer price inflation is projected at around 4.7% , indicating continued economic expansion alongside relatively moderate inflationary pressures.

The external environment remains subject to considerable uncertainty arising from geopolitical tensions, fluctuations in international commodity prices, changes in global interest rates, trade restrictions and disruptions in global supply chains. Global growth is projected at around 3.1% in 2026 , with inflationary pressures expected to remain sensitive to energy and commodity price movements. These developments may have an indirect impact on India s exports, imports, currency movements, input costs and investment flows.

D. CAUTIONARY STATEMENT

Statements in the Management Discussion and Analysis describing the Company s objectives, projections, estimates and expectations are forward-looking statements within the meaning of applicable securities laws and regulations. Actual results may differ materially from those expressed or implied.

Important factors that could make a difference to the Company s operations include economic conditions affecting demand/supply and price conditions in the domestic and overseas markets in which the Company operates; changes in Government regulations; tax laws and other statutes; and incidental factors.

AGRICULTURE INDUSTRY

INDUSTRY OVERVIEW

Agriculture is one of the cornerstones of India s economy and society, providing a livelihood to nearly 55% of the population . With the world s second-largest agricultural land area , India is a global leader in farm output.

The country has:

? The largest cattle herd (buffaloes);

? The largest area under wheat, rice and cotton; and

? Ranks as the worlds top producer of pulses and spices.

India has held the top position in milk production since 1998, currently accounting for 25% of global output . Over the past decade, milk production has risen by 63.56% , from 146.3 million tonnes in 2014-15 to 239.2 million tonnes in 2023-24 , achieving an average annual growth rate of 5.7% .

India is also the second-largest producer of fruits, vegetables, tea, farmed fish, etc. , underscoring its central role in global food supply. India s agrochemical exports have nearly trebled in the past decade, rising to US 3.3billioninFY25 ** from ** US 3.3 billioninFY 25 * * from * * US 1.3 billion in FY15 , making the country the third-largest exporter after China and the United States, according to a report by the Agro-Chemicals Federation of India (ACFI) and Deloitte .

MARKET SIZE

India s exports of agricultural and processed food products rose by 9.49% YoY to Rs. 4,50,839.85 crore (US$ 53.24 billion) in FY25 . This growth was driven by strong shipments of rice, meat and fruits.

As on October 3, 2025 , the area sown under Kharif crops was 112.15 million hectares , compared to 111.49 million hectares during the corresponding period of the previous year.

In 2024-25 , India exported 20.19 million tonnes of rice worth Rs. 1,05,720.04 crore (US$ 12.47 billion) to more than 172 countries . India s wheat stocks were the highest in three years as of March 2025. The Food Corporation of India aims to purchase 31 million tons of wheat in 2025 . Rice reserves are also high, potentially boosting exports.

Foreign investment has also supported growth in the sector. From April 2000 to June 2025 , India received Rs. 22,071.9 crore (US$ 3.48 billion) in FDI inflows into the agriculture services sector.

During FY25 :

? Processed vegetables accounted for exports of Rs. 7,223.85 crore (US$ 853.89 million);

? Miscellaneous processed items accounted for Rs. 17,236.94 crore (US$ 2,038.16 million); and

? Processed fruits & juices accounted for Rs. 8,515.23 crore (US$ 1,005.24 million).

This growth is supported by rising incomes in both rural and urban areas, as well as rapid population expansion that continues to fuel demand for diverse agricultural and processed products.

Agricultural Exports from India (US$ billion):

Year	Exports
FY16	32.08
FY17	33.87
FY18	38.21
FY19	38.54
FY20	35.09
FY21	41.25
FY22	50.21
FY23	54.59
FY24	49.69
FY25	53.24
FY26	54.70

INVESTMENTS/DEVELOPMENTS

Some major investments and developments in agriculture are as follows:

? The Government of India has substantially increased its budget allocations for the sector, from Rs. 11,915.22 crore (US2.60billion)in2008-09 ** to ** Rs.1,62,671crore(US2.60billion)in2008-09 ** to ** Rs.1,62,671crore(US 18.49 billion) in Budget 2026, underscoring its strong commitment.

? As of January 31, 2026, India has 8,831 cold storages with a combined capacity of 402.87 lakh metric tonnes (MT).

? Indias push to become a global hub of natural and organic farming involves extensive farm management services, including digital monitoring via Kisan Credit Card benefits and GST reductions on bio-fertilizers.

? The agriculture sector in India is poised to maintain a 4% growth over the next decade, driven by growing product demand, technological adoption and supportive government measures, as expressed by NITI Aayog members.

? Indias Free Trade Agreement with the UK, signed on July 24, 2025, grants duty-free access to 95% of its agricultural and processed food exports, including marine products, and is expected to boost agri exports by over 20% in three years, supporting its US$ 100 billion target by 2030.

? The food processing industry supports over seven million jobs across the value chain, directly and indirectly, while enabling rural industrialisation and reducing post-harvest losses.

? According to the Viksit Bharat@2047 report, Indias food processing sector will grow significantly, reaching US1.1trillionbyFY35 ** , ** US1.1trillionbyFY35 ** , ** US 1.5 trillion by FY40, US1.9trillionbyFY45 ** and ** US1.9trillionbyFY45 ** and ** US 2.15 trillion by FY47. The governments focus is on supply chain-related infrastructure such as cold storage, abattoirs and food parks.

? Indias smart agriculture market reached US860.7millionin2025 ** andisprojectedtogrowata ** CAGRof18.93860.7millionin2025 ** andisprojectedtogrowata ** CAGRof18.93 4,281.7 million by 2034, driven by rising demand for precision agriculture technologies. By 2025, Indian agritech companies are likely to witness investments worth US$ 30-35 billion.

GOVERNMENT INITIATIVES

Some of the recent major Government initiatives in the sector are as follows:

? From 2014-15 to 2025-26, a total of 25,689 Custom Hiring Centres (CHCs) have been established under the Sub-Mission on Agricultural Mechanisation (SMAM) scheme, including 558 CHCs during 2025-26 (as of 30 October 2025).

? The Government has approved the allocation of 52 lakh metric tonnes (LMT) of surplus rice from the Food Corporation of India (FCI) for ethanol production, 26 LMT each for the Ethanol Supply Year (ESY) 2024-25 (November 1, 2024, to October 31, 2025).

? The government has entered into agreements with 26 overseas and domestic companies at the World Food India summit, securing investments worth Rs 1.02 lakh crore (US$ 11.80 billion) for Indias food processing sector.

? The National Programme for Organic Production (NPOP) is anticipated to support 2 million farmers, with organic exports projected to surpass US$ 1 billion by 2025-26.

? The Central government allocated Rs 12,200 crore (US$ 1.39 billion) towards Pradhan Mantri Fasal Bima Yojana (PMFBY) in the Union Budget 2026.

? A network of 729 Krishi Vigyan Kendras has been established at the district level across the country to ensure that newer technologies-such as improved variety seeds of crops, new breeds/strains of livestock and fish, and improved production and protection technologies-reach farmers.

? The umbrella scheme Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) ensures Minimum Support Price (MSP) to farmers for various Kharif and Rabi crops while also keeping a robust procurement mechanism in place.

? As per the Economic Survey 2024-25, for 2026-2027, the MSP for arhar and bajra has been increased by 54% and 56% over the weighted average cost of production, respectively. Moreover, the MSP for Masur has risen by 89%, while rapeseed has seen an increase of 98%.

? To make India a global hub for Shree Anna, the Indian Institute of Millet Research, Hyderabad will be supported as the Centre of Excellence for sharing best practices, research and technologies at the international level.

ROAD AHEAD

India s agriculture sector is poised for sustained growth, supported by rising exports, greater investments and targeted policy interventions.

Agriculture and fisheries exports grew from Rs. 2,49,264 crore (US 35.16billion)inFY20 ** to ** Rs.4,50,839.85crore(US 35.16 billion ) inFY 20 * * to * * Rs .4 , 50 , 839.85 crore ( US 53.24 billion) in FY25 , registering a CAGR of 12.58% .

Tamil Nadu has set an ambitious target of Rs. 42,745 crore (US 5billion) ** inseafoodexportsbystrengtheningcoastalinfrastructureandpromotingvalueaddition,whileIndiaasawholeaimstoachieve ** Rs.8,549crore(US 5 billion ) * * inseafoodexportsbystrengtheningcoastalinfrastructureandpromotingvalueaddition , whileIndiaasawholeaimstoachieve * * Rs .8 , 549 crore ( US 1 billion) turmeric exports by 2030 through the National Turmeric Board and the SPICED scheme , retaining its dominant 58 - 66% global market share .

The Ministry of Food Processing Industries (MoFPI) is also pushing ahead with investments in food processing through the continued implementation of PMKSY , with an allocation of Rs. 4,600 crore (US$ 559.4 million) till March 2026.

Agricultural credit in India is Rs. 33.5 lakh crore (US$ 379 billion) in FY26 , driven by increased formalisation of rural credit, with NABARD working to address regional imbalances and support tenant farmers.

The adoption of food safety and quality assurance frameworks such as Total Quality Management (TQM), ISO 9000, ISO 22000, HACCP, Good Manufacturing Practices (GMP) and Good Hygienic Practices (GHP) is expected to improve product standards, support exports and increase global competitiveness of Indian agri-products.

Crop diversification and innovation will also play a critical role in shaping the sector s outlook:

? India is expected to become self-sufficient in pulses in the coming years, backed by early-maturing seed varieties and higher minimum support prices.

? Maize production could potentially double to 86 million tonnes by 2047, offering attractive opportunities through high-yield seeds and better crop management.

? The dairy sector is projected to expand by 11-13% in FY26, driven by value-added products (VAPs) and investments worth Rs. 3,400 crore (US$ 398 million), raising the share of VAPs to 45% while improving margins by 20-30 basis points.

? value addition, while India as a whole aims to achieve Rs. 8,549 crore (US$ 1 billion) turmeric exports by 2030 through the National Turmeric Board and the SPICED scheme, retaining its dominant 58-66% global market share. The Ministry of Food Processing Industries (MoFPI) is also pushing ahead with investments in food processing through the continued implementation of PMKSY, with an allocation of Rs. 4,600 crore (US$ 559.4 million) till March 2026. Agricultural credit in India is Rs. 33.5 lakh crore (US$ 379 billion) in FY26, driven by increased formalization of rural credit, with National Bank for Agriculture and Rural Development (NABARD) working to address regional imbalances and support tenant farmers. The adoption of food safety and quality assurance frameworks such as Total Quality Management (TQM), ISO 9000, ISO 22000, HACCP, Good Manufacturing Practices (GMP), and Good Hygienic Practices (GHP) is expected to improve product standards, support exports, and increase global competitiveness of Indian agri-products. Crop diversification and innovation will also play a critical role in shaping the sectors outlook. India is expected to become self-sufficient in pulses in the coming years, backed by early-maturing seed varieties and higher minimum support prices. Maize production could potentially double to 86 million tonnes by 2047, offering attractive opportunities through high-yield seeds and better crop management. The dairy sector is projected to expand by 11-13% in FY26, driven by value-added products (VAPs) and investments worth Rs. 3,400 crore (US$ 398 million), raising the share of VAPs to 45% while improving margins by 20-30 basis points.

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