In the current economic uncertainty with volatile equity
markets and low interest rates, investors are on the lookout for sectors that
are backed by strong and long-term fundamentals.
Agriculture sector in India provides with a treasure of opportunities
to capture growth and profit. Whether investing directly in this sector or buying
shares in agribusiness companies; investors are out to invest funds in this
sector, given the ever increasing population with rising demand of feed, food
and fuel.
Catapulting
Demand and Short Supply
Global demand for agricultural commodities is increasing,
given the population growth, and readiness to spend increasing income in food
and energy along with demand of a more resourceful western-pattern diet.
Nonetheless, agricultural productivity is limited due to technology
limitations, loss of vast spectrum of irreparable productive land each year to
urbanization and climate change including many other factors. This cuts down
the adequate supply of food products.
Diversification consolidates risk-management in portfolio
planning, and the agriculture sector provides with great opportunities for PE
or VC firms to participate in the growth and profit derived at the grass root
level from the production of food.
Synopsis
Whether opt to invest via financial markets, or to lead the
real asset space, the agriculture sector is packed with growth and income
potential, geared by basic demographic trends. Certainty the sector is expected
to expand with an objective to accommodate 60 million fresh mouths to feed every
year, but of course all the agribusiness companies are not going to flourish;
so it is important to select the right stock for the investment firms.
