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INDIAN AGRICULTURE  & RURAL MARKETING Present Status & the Potential Abdul Ali MBA Agribusiness
INDIA TODAY & TOMORROW <ul><li>Self Reliance </li></ul><ul><li>Heading towards world leadership in food & agriculture </li...
USA JAPAN FRANCE  GERMANY UK INDIA BY 2020   SOME  DESERT COUNTRIES   INDIA  CHINA  BRAZILINDONESIA MEXICO MALAYSIA H I G ...
Agro-Food:  Fruit & Vegetables <ul><li>CORE TECHNOLOGIES   </li></ul><ul><li>COLD CHAINS </li></ul><ul><li>PACKAGING  </li...
Envisioning an Empowered Nation <ul><li>* Vol: </li></ul><ul><li>61 mil MT </li></ul><ul><li>* Business : </li></ul><ul><l...
Envisioning an Empowered Nation <ul><li>* Vol: </li></ul><ul><li>33 and 71mil tonnes </li></ul><ul><li>* Business : </li><...
Envisioning an Empowered Nation <ul><li>Vol: </li></ul><ul><li>200 mil MT </li></ul><ul><li>*Business : </li></ul><ul><li>...
EXISTING VALUE CHAIN FARMER Local Traders Consolidator Wholesale Commission Agent Wholesaler Retailers CONSUMER Fruits & V...
  Farm  Farm   Village Agent     Abdul   Aharati   20%    Retailer   100-200%   Factory  Abdul     Retailer  Distributor. ...
AGRICULTURE IN INDIA <ul><li>Over 700 million people i.e.69% of the  population depends upon the rural economy for their l...
INDIAN AGRICULTURE-STRENGTH <ul><li>ITEMS  RANK  SHARE  PRODUCTION </li></ul><ul><li>( In Mill.Tonnes)  </li></ul><ul><li>...
INEFFICIENCIES OF INDIAN AGRICULTURE <ul><li>Indian wastes more fruits & vegetables than are consumed in UK </li></ul><ul>...
FOOD PROCESSING INDUSTRY IN INDIA <ul><li>Indian wastes more fruits & vegetables than are consumed in UK </li></ul><ul><li...
FOOD PROCESSING INDUSTRY Major Challenges <ul><li>Awareness about processed foods </li></ul><ul><li>Backward and forward l...
Indian Food Processing Industry Shortcomings   <ul><li>The small players who are unorganized are about 70% and accounts fo...
Indian Food Processing Industry Outlook <ul><li>Fruits & Vegetable processing which is about 2% and expected to grow by 10...
POTENTIAL FOR RURAL MARKETING <ul><li>Untapped Rural Potential </li></ul><ul><li>-6,27,000 villages across country </li></...
Four “A”s of Rural Marketing <ul><li>Availability  - Place </li></ul><ul><li>Affordability - Price </li></ul><ul><li>Accep...
Current   Concerns <ul><li>Pressure of the Population on Land </li></ul><ul><li>Skewed distribution of operational holding...
EXECUTION <ul><li>Food Mart - Village Panchyat level </li></ul><ul><li>Agri Mart  - Block level  </li></ul><ul><li>Kissan ...
PROPOSED MODEL <ul><li>THREE WAY  MODEL </li></ul><ul><li>-Food Mart - For selling Food Stuff </li></ul><ul><li>-Agri Mart...
URGENT ISSUES TO BE RESOLVED <ul><li>THREE ACTIVITY  MODEL </li></ul><ul><li>-Food Mart - For selling Food Stuff </li></ul...
TOOLS FOR RURAL MARKETING <ul><li>Stationary Outlets by using local raw material </li></ul><ul><li>Pota cabin based statio...
INTERVENTIONS FROM GOVT . <ul><li>Timely Availability of support for various activities through one single agency </li></u...
THANKS FOR YOUR  ATTENTION
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Indian agriculture

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  1. 1. INDIAN AGRICULTURE & RURAL MARKETING Present Status & the Potential Abdul Ali MBA Agribusiness
  2. 2. INDIA TODAY & TOMORROW <ul><li>Self Reliance </li></ul><ul><li>Heading towards world leadership in food & agriculture </li></ul><ul><li>High input cost and low mechanization </li></ul><ul><li>Use of heavy doses of inorganic fertilizers </li></ul><ul><li>Low productivity based production </li></ul><ul><li>Food for others </li></ul><ul><li>World leader in food & agriculture </li></ul><ul><li>Low input cost and high mechanization </li></ul><ul><li>Organic through Vedic kheti </li></ul><ul><li>High productivity based production </li></ul>
  3. 3. USA JAPAN FRANCE GERMANY UK INDIA BY 2020 SOME DESERT COUNTRIES INDIA CHINA BRAZILINDONESIA MEXICO MALAYSIA H I G H T E C H N O L O G Y L O W POOR BIODIVERSITY RICH Biodiversity- Technology- Prosperity Matrix
  4. 4. Agro-Food: Fruit & Vegetables <ul><li>CORE TECHNOLOGIES </li></ul><ul><li>COLD CHAINS </li></ul><ul><li>PACKAGING </li></ul><ul><li>PROCESSING </li></ul><ul><li>ASEPTIC PACKING </li></ul><ul><li>CA/ MA CONTAINERS </li></ul><ul><li>WEIGHING AND SENSING </li></ul><ul><li>EQUIPMENT </li></ul>SOURCE: INDIA : 2020, A VISION FOR THE NEW MILLENNIUM BY KALAM ABDUL, A.P.J. & RAJAN, Y.S . <ul><li>1995 </li></ul><ul><li>Vol: 33 & 71 Million Tonnes </li></ul><ul><li>BUSINESS </li></ul><ul><li>Rs 10000 cr/yr & </li></ul><ul><li>Rs 15000 cr/yr </li></ul><ul><li>LOSSES: </li></ul><ul><li>6250 cr/yr </li></ul><ul><li>RELATED INDUSTRIES </li></ul><ul><li>Rs 2500 cr/yr </li></ul><ul><li>CHILLING </li></ul><ul><li>PACKAGING </li></ul><ul><li>VALUE ADDITION </li></ul>2020 Vol: 90 & 150 Million Tonnes * BUSINESS Rs. 27000 cr/yr & Rs. 32000 cr/yr * LOSSES Rs. 5900 cr/yr * OTHER BUSINESS Rs. 25200 cr/yr
  5. 5. Envisioning an Empowered Nation <ul><li>* Vol: </li></ul><ul><li>61 mil MT </li></ul><ul><li>* Business : </li></ul><ul><li>61000 cr/yr </li></ul><ul><li>* Losses: </li></ul><ul><li>3050 cr/yr </li></ul><ul><li>* Related industries: </li></ul><ul><li>31000 cr/yr </li></ul><ul><li>Chilling </li></ul><ul><li>Packaging </li></ul><ul><li>Value addition </li></ul>COLD CHAIN CRYO FLUDS CONTAINER ASEPTIC PACKAGING FODDERS ELECTRONIC TESTING MACHINES HYGENIC TRG. WASTE REDUCTION <ul><li>* Vol: </li></ul><ul><li>300 mil MT </li></ul><ul><li>* Business: </li></ul><ul><li>300000 cr/yr </li></ul><ul><li>* Losses: </li></ul><ul><li>3000 cr/yr </li></ul><ul><li>* Related industries: </li></ul><ul><li>31000 cr/yr </li></ul><ul><li>Chilling </li></ul><ul><li>Packaging </li></ul><ul><li>New addition </li></ul>AGRO –FOOD MILK PRESENT CORE TECHNOLOGIES YEAR 2020
  6. 6. Envisioning an Empowered Nation <ul><li>* Vol: </li></ul><ul><li>33 and 71mil tonnes </li></ul><ul><li>* Business : </li></ul><ul><li>10000 cr/yr and </li></ul><ul><li>15000 cr/yr </li></ul><ul><li>* Losses: </li></ul><ul><li>6250 cr/yr </li></ul><ul><li>* Related industries: </li></ul><ul><li>Rs. 2500 cr/yr </li></ul><ul><li>Chilling </li></ul><ul><li>Packaging </li></ul><ul><li>Value addition </li></ul>COLD CHAINS PACKAGING PROCESSING ASEPTIC PACKAGING CA /MA CONTAINERS WEIGHTING & SENSING EQUIPMENT <ul><li>* Vol: </li></ul><ul><li>90 and 150 mil tonnes </li></ul><ul><li>* Business: </li></ul><ul><li>27000 cr/yr and </li></ul><ul><li>32000 cr/yr </li></ul><ul><li>* Losses: </li></ul><ul><li>5900 cr/yr </li></ul><ul><li>* Related industries : </li></ul><ul><li>Rs. 25200 cr/yr </li></ul><ul><li>Chilling </li></ul><ul><li>Packaging </li></ul><ul><li>New addition </li></ul>AGRO –FOOD FRUIT & VEGETABLES PRESENT CORE TECHNOLOGIES YEAR 2020
  7. 7. Envisioning an Empowered Nation <ul><li>Vol: </li></ul><ul><li>200 mil MT </li></ul><ul><li>*Business : </li></ul><ul><li>90000 cr/yr </li></ul><ul><li>Losses: </li></ul><ul><li>9000 cr/yr </li></ul><ul><li>*Related industries: </li></ul><ul><li>9000 cr/yr </li></ul><ul><li>Packaging </li></ul><ul><li>Value addition </li></ul>PEST/RODENT CONTROL HANDLING EQUIPMENTS ELECTRONIC SENSORS (MOISTURE ETC.) STORAGE PACKAGING <ul><li>Vol: </li></ul><ul><li>360 mil MT </li></ul><ul><li>*Business: </li></ul><ul><li>150000 cr/yr </li></ul><ul><li>Losses: </li></ul><ul><li>3000 cr/yr </li></ul><ul><li>*Related industries: </li></ul><ul><li>86100 cr/yr </li></ul><ul><li>Chilling </li></ul><ul><li>Packaging </li></ul><ul><li>New addition </li></ul>AGRO –FOOD CEREAL PRESENT CORE TECHNOLOGIES YEAR 2020
  8. 8. EXISTING VALUE CHAIN FARMER Local Traders Consolidator Wholesale Commission Agent Wholesaler Retailers CONSUMER Fruits & Vegetable Marketing Chain in U.P.
  9. 9. Farm Farm Village Agent Abdul Aharati 20% Retailer 100-200% Factory Abdul Retailer Distributor. C&F Factory 20% 35-50% EXISTING VALUE CHAIN VS FOOD MART Happy Usual Consumer Consumer & & Farmer Farmer
  10. 10. AGRICULTURE IN INDIA <ul><li>Over 700 million people i.e.69% of the population depends upon the rural economy for their livelihood. </li></ul><ul><li>Large number of rural population lives on USD 175 per capita in comparison to the average National per capita income of USD 480. </li></ul><ul><li>Though, India is the second largest producer in agriculture produce in the world but yields are still very low. </li></ul>
  11. 11. INDIAN AGRICULTURE-STRENGTH <ul><li>ITEMS RANK SHARE PRODUCTION </li></ul><ul><li>( In Mill.Tonnes) </li></ul><ul><li>India World </li></ul><ul><li>TEA I 27.0% 0.75 2.99 </li></ul><ul><li>Milk I 12.0% 73.10 568.48 </li></ul><ul><li>Cattle Pop. I 14.8% 218.80 1350.00 </li></ul><ul><li>Sugar cane II 12.2% 315.10 1278.00 </li></ul><ul><li>Fruits II 11.6% 49.19 475.14 </li></ul><ul><li>Vegetables II 12.0% 61.69 670.59 </li></ul><ul><li>Paddy II 21.3% 134.15 598.85 </li></ul><ul><li>Wheat II 10.7% 74.25 576.31 </li></ul>
  12. 12. INEFFICIENCIES OF INDIAN AGRICULTURE <ul><li>Indian wastes more fruits & vegetables than are consumed in UK </li></ul><ul><li>Cumulative waste is about $ 6.7 billion which is equivalent to 40% of the total horticulture produce </li></ul><ul><li>Poor infrastructure and logistics support </li></ul><ul><li>Rough and unorganized handling </li></ul><ul><li>India has 70% more arable land but produces 30% less than China </li></ul>
  13. 13. FOOD PROCESSING INDUSTRY IN INDIA <ul><li>Indian wastes more fruits & vegetables than are consumed in UK </li></ul><ul><li>Cumulative waste is about $ 6.7 billion which is equivalent to 40% of the total horticulture produce </li></ul><ul><li>Poor infrastructure and logistics support </li></ul><ul><li>Rough and unorganized handling </li></ul><ul><li>India has 70% more arable land but produces 30% less than China </li></ul>
  14. 14. FOOD PROCESSING INDUSTRY Major Challenges <ul><li>Awareness about processed foods </li></ul><ul><li>Backward and forward linkages </li></ul><ul><li>Marketing network </li></ul><ul><li>Cold chain and supply logistics </li></ul><ul><li>Lack of linkages with Industries, Government and Institutions </li></ul><ul><li>Taxation in line with other Nations </li></ul><ul><li>Complex Food Laws </li></ul>
  15. 15. Indian Food Processing Industry Shortcomings <ul><li>The small players who are unorganized are about 70% and accounts for about 50% of the value. </li></ul><ul><li>The organized is small but is growing. </li></ul><ul><li>India’s share in global scenario is about 2% which is insignificant. </li></ul><ul><li>No Indian brands have global presence. </li></ul><ul><li>Most of the exports are in bulk and lack branding. </li></ul><ul><li>Mostly units are involved in primary value addition .The secondary and tertiary value addition units are minimal resulting low value addition. </li></ul><ul><li>Lots of wastage due to post harvest looses. </li></ul>
  16. 16. Indian Food Processing Industry Outlook <ul><li>Fruits & Vegetable processing which is about 2% and expected to grow by 10% by 2010 and 35% by 2025(MOFPI). </li></ul><ul><li>MOFPI estimates the size of food processing Rs 3105 Billion including Rs 990 billion of value added products. </li></ul><ul><li>Food processing Industry is estimated to grow by 9-12% on the basis of the GDP growth rate of 6-8%. </li></ul>
  17. 17. POTENTIAL FOR RURAL MARKETING <ul><li>Untapped Rural Potential </li></ul><ul><li>-6,27,000 villages across country </li></ul><ul><li>-Account of 70% of population </li></ul><ul><li>-60% of National demand for various </li></ul><ul><li>product categories </li></ul><ul><li>There are almost twice as many “lower middle </li></ul><ul><li>income” households in rural areas as in the urban </li></ul><ul><li>areas. </li></ul>
  18. 18. Four “A”s of Rural Marketing <ul><li>Availability - Place </li></ul><ul><li>Affordability - Price </li></ul><ul><li>Acceptability - Product </li></ul><ul><li>Awareness - Promotion </li></ul>
  19. 19. Current Concerns <ul><li>Pressure of the Population on Land </li></ul><ul><li>Skewed distribution of operational holdings </li></ul><ul><li>Land Degradation </li></ul><ul><li>Water Balance </li></ul><ul><li>Low level of mechanization </li></ul><ul><li>Low Fertilizer Consumption </li></ul>
  20. 20. EXECUTION <ul><li>Food Mart - Village Panchyat level </li></ul><ul><li>Agri Mart - Block level </li></ul><ul><li>Kissan - Village level </li></ul>
  21. 21. PROPOSED MODEL <ul><li>THREE WAY MODEL </li></ul><ul><li>-Food Mart - For selling Food Stuff </li></ul><ul><li>-Agri Mart - For selling agri-inputs </li></ul><ul><li>-Kissan - For various other two-way linkages </li></ul>
  22. 22. URGENT ISSUES TO BE RESOLVED <ul><li>THREE ACTIVITY MODEL </li></ul><ul><li>-Food Mart - For selling Food Stuff </li></ul><ul><li>-Agri Mart - For selling agri-inputs </li></ul><ul><li>-Kissan - For various other two-way linkages </li></ul>
  23. 23. TOOLS FOR RURAL MARKETING <ul><li>Stationary Outlets by using local raw material </li></ul><ul><li>Pota cabin based stationary outlets </li></ul><ul><li>Mobile Retail Outlets mounted on Truck, Pick up and Auto Riksha and Cycle Riksha </li></ul><ul><li>Fuel Stations based retail outlets </li></ul><ul><li>Integration of the activities </li></ul>
  24. 24. INTERVENTIONS FROM GOVT . <ul><li>Timely Availability of support for various activities through one single agency </li></ul><ul><li>Availability of loans from Banks as per RBI guidelines </li></ul><ul><li>Infrastructure availability through NHM,RKVY,NFSM, and other schemes of Rural Development Department. </li></ul><ul><li>Promotion of private –public partnership and ensure that they run smoothly. </li></ul><ul><li>Promotion of community farming </li></ul><ul><li>Provision for seed capital, additional subsidy from state Govt., clear policies and tax laws. </li></ul>
  25. 25. THANKS FOR YOUR ATTENTION
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