The Quarterly Agricultural Outlook provides an overview of agricultural trends both globally and at the national level. Agriculture continues to be critical to India’s economy given its role in meeting the food and fibre needs of over a billion people and providing livelihoods to millions of households in rural areas. India is a major producer and consumer of several basic food commodities. The challenge is to meet the diversified and increased demand for food commodities as a result of the changing dietary preferences of the population. Imports meet a substantial share of the consumption of edible oils and pulses. The food inflation of the last two years has highlighted the need to watch the imbalances in supply and demand not just of food grains, but also of fruits, vegetables and milk, both in the short and long runs.