Impact of COVID-19 on the Agriculture Companies in India

Like the whole world, India, too, was affected massively by the calamitous COVID-19 pandemic. Apart from the construction sector, the agricultural value chain in the country was troubled by this even more adversely. This, in turn, hurt the agriculture companies in India as well. 

Fortunately, the government did understand the impending crisis pretty quickly and tried to react as well. However, in essence, their effort was not enough to pull the nation out of the tragedy. The pandemic was, indeed, successful in messing up the whole agricultural system in India. But what exactly happened during the pandemic period? Let’s learn a little more about it.

1. Agricultural Supply Chains 

As mentioned before, the COVID-19 pandemic did not only hit the agriculture companies in India massively but also the supply chain as well. For starters, due to its emergence, the availability of migrant labor began lowering. Thus, the production speed of the food or grocery started getting reduced as well. Furthermore, the other harvesting activities became pretty slow too. 

The transportation problems, too, began quite rapidly. This, in turn, made it almost impossible for the agriculture companies in India to get the required food from the farmers. Moreover, due to the unavailability of the products, the price of the same increased massively. 

Besides, a new gossip was brought up in the market as well. It acknowledged to people that the chickens were the primary carrier of COVID-19. It, sequentially, affected the natural working procedure and revenue production too. 

Some other issues, which came through during the same period, were –

  • The lockdown guideline implemented by the Indian government exempted the farm supply chain and its operations. It was, indeed, the right decision. However, the specks of implementation issues lead to the shortage in labor and the sudden spike in pricing!
  • To keep the farm population protected, the government should have taught them about social distancing. Moreover, frequent COVID-19 testing was pretty crucial in this aspect, as well. However, they did not implement anything as such, which, in turn, led to more complications. 
  • Due to the supply chain disruption, the agriculture companies in India were not getting enough supplies at all. Furthermore, due to the arrival of the pandemic, most people were trying to accumulate as much ration as possible. It, in turn, led to the issue of food shortage and increased the price of everything. 
  • Due to the pandemic, the revenue supply for the farmers reduced massively. Thus, even if they wanted to, they could not buy new material for farming. Moreover, they did not have continued access to the market. Due to this reason, the production speed reduced quite prominently as well. 
  • The dairy and poultry farmers did not have any targeted help at all. It, in turn, affected their overall revenue production and made many of them stop working.

2. Shortage of Fertilizers 

Due to the disturbance in the global trade function, many farmers had encountered a shortage of various agricultural inputs. Most of the production plants of China were shut down during this period as well. 

Due to this reason, the supply of the same in India reduced even more. Hence, the price of the same increased as well, which, sequentially, made the farmers run out of their savings while buying them. 

The government tried to tackle the financial issue by providing a small amount of money on account of the farmers every month. However, the quantity was too low, to say the least. Thus, in this case, opting for organic products was the only way.

3. No Procurement 

During the pandemic period, the government of India stopped the procurement operations as well. This, in turn, had put the production of Ravi season in danger. Many harvested products died or got spoiled during the same period as well.

4. Fall in Prices 

The prices in the agricultural market fell quite quickly because of the lack of access to space. The stoppage of transportation and the closure of borders (from the side of China) contributed to this aspect as well. 

The sudden uprising of the labor expense and lack of market access affected the base income of the farmers. It also prompted a huge amount of crops to rot in the field and made many farmers go bankrupt during the process. 

4. Sale Restrictions 

Due to the COVID-19 pandemic, the government has made some prominent restrictions on intra-state and inter-state sales as well. In turn, it made the selling aspects of the farmers even more limited and led to a massive loss of the agriculture companies in India

Read more:- How Do You Market Agro Products?


Most agriculture companies in India were providing their offerings at a higher price during the pandemic. Thus, if you are currently looking for an organization, which can offer you rations at an affordable cost, then opting for O’AgriFarm could be ideal for you. Aside from the reasonable pricing, the company has a flexible paying procedure too. Thus, you can pay them up whenever you feel comfortable. However, the offer will be active for only two months. So, make sure to keep the date in mind!

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