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Changes And Implications Of Indian Agriculture
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Changes And Implications Of Indian Agriculture

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  • 1. Changes and Implications of Indian Agriculture
    Zahid Afzal
    Atul Chavan
    Rajeshwar Haji
    Katie Parrish
  • 2.
  • 3. Religion
  • 4. Government Structure of India
  • 5. Administrative Structure of Bangladesh
    Bangladesh has four tires administration
    Units Number
    Division 6
    Districts/Zilas 64
    Upazila 481
    Union 4,498
    ----------------------------------------------------------
    City Corporation 6
    Municipalities 308
    Thana 599
    *Source: LGRD Ministry and Police Headquarters.
  • 6. GDP
  • 7. GDP Growth Rate in India
  • 8. GDP Growth Rate in Bangladesh
  • 9. Inflation in India
  • 10. Inflation in Bangladesh
  • 11. Current Recession
    According to BBC, 2010 projection of worldwide outsourcing is $110B
    Out of that, India’s market share is $60B (almost half)
  • 12. Current Recession
    Indian companies have major outsourcing deals from the US
    India's exports to the US have also grown substantially over the years
    • Indian companies with big ticket deals in the US are seeing their profit margins shrinking
  • Current Recession
    Hundreds of workers have lost jobs in diamond jewelry, textiles and leather industry.
    Companies in IT industry have stopped hiring and project lower manpower need.
    Firms attached to the capital market are laying off people and large companies are putting their future expansion plans on hold.
  • 13. Current Recession
  • 14. Bangladesh Agricultural Development
    The Bangladesh Agricultural Research Council (BARC) under the Ministry of Agriculture is involved in cooperative activities in several ministries of government: Agriculture, Forest and Environment, Fisheries and Livestock, Rural Development, Education, Industries, Commerce, Science and Technology, etc.
  • 15. Bangladesh Agricultural Development
    BARI (Bangladesh Agricultural Research Institute)
    multi-crop research institute
    cereals, tubers, pulses, oilseeds,
    non-commodity areas- soil and crop, disease and insect, irrigation and water
    Development-machinery, cropping and farming system, post-harvest handling and processing,
    socio-economic studies
  • 16. Bangladesh Agricultural Policies
    Ministry of Agriculture
    Ministry of Jute
    Ministry of Fisheries and Livestock
    Ministry of Environment and Forest, 1994
    Ministry of Land
    Ministry of Water Resources
    Ministry of Forests and Environment
    Ministry of Food
    Ministry of Rural Development and Cooperatives
    Planning commission, Ministry of Planning
  • 17. Agricultural Land Use Comparison
  • 18. Area and production of Agricultural products(Production in million tons)
  • 19. Production
    Perishables:
    China $195 B
    USA $150 B
    India $105 B
    India produces
    41% of world’s mango
    23% of bananas
    24% of cashew nuts
    10% of onions
    30% of cauliflowers
    36% of green peas
    Livestock
    53% of world’s buffalo
    17% of goat
  • 20. Diet /
    functional /
    Nortth America,
    Japan, Western
    organic foods
    Europe, Australia
    C
    onvenience
    Eastern
    foods
    Europe
    Snacks /
    prepared
    meals
    India
    , China,
    Dairy, meat,
    Latin America
    fresh fruits
    fruit juices,
    beverages
    Africa
    Carbohydrate
    (Sub
    -
    Saharan)
    staples
    Mass
    Quality
    Convenience
    High
    Technology
    Surviving
    Market
    Food Service
    Hygiene
    Source: Rabobank International
    Snacking
    Evolution of Global Food Demand
  • 21. India's share in global production (2001-03)
    11%
    Vegetables
    (Large producer)
    India's share in global exports
    15%
    Fruits
    (1991-93)
    2.1%
    Vegetables
    0%
    5%
    10%
    15%
    20%
    (2001-03)
    1.7%
    Indian prices as a % of world prices (2001-03)
    0.4%
    (Nominal)
    Fruits
    53%
    Vegetables
    0.5%
    (Low cost producer)
    0%
    2%
    4%
    6%
    8%
    10%
    63%
    Fruits
    What is wrong?
    0%
    20%
    40%
    60%
    80%
    100%
    Source: UN COMTRADE Statistics, World Bank Staff Estimates
  • 22. Food Safety and Cultural Issues in India
  • 23. Different Standards
    International Standards
    Internal Standards
    Bureau of Indian Standards (BIS)
    Indian Standards Institute (ISI)
    Similarly, Bangladesh has Bangladesh Standards and Testing Institution (BSTI)
    International Organization for Standards (ISO)
    WTO
    Sanitary and Phytosanitary Standards (SPS)
    Technical Barriers to Trade (TBT)
  • 24. Different Standards
    Domestic Standards
    Should follow Bureau of Indian Standards
    BUT…reality check!
    Too costly
  • 25. Cultural Issues
    Hindu
    India has 70% Hindus
    They consider the cow as a sacred animal
    Slaughtering is illegal in most of the country
    Muslim
    India has largest Muslim population
    Muslim cannot eat pork
    Meat has to be processed according to religious method (Halal)
    Can’t stun, religious verse
  • 26. Cultural Issues – Firm Level
    (Future) Problems for Wal-Mart
    Want to sell meat in stores (for Muslims)
    Would need large slaughtering plant (could get permission but…)
    No room
    Would be resistance from large Hindu population
    Muslims would want
    2 separate salespeople for beef and pork
    2 separate sets of machinery
  • 27. Food Safety
    Sanitary standards
    Depends on economic class (income and education)
    Have standards but not followed
    Ministry of Health and Family welfare website on Food Safety
    Slaughtering
    http://www.youtube.com/watch?v=OJPnQXHtixY
  • 28. Relevant Legislations and Institutional Set-up
  • 29.
  • 30. Level of Processing (Fruits & Vegetables)
    USA - 80 %
    France - 70 %
    Malaysia- 80 %
    Thailand- 30 %
    India - 1.3 %
  • 31. Level of Processing (Perishables)
    OrganizedUnorganizedTotal
    Fruits / Vegetables 1.3% 0.8% 2.2%
    Milk /milk products 13% 22% 35%
    Buffalo Meat 21% - 21%
    Poultry 6% - 6%
    Marine Products 8% 15% 21%
  • 32. Cost Build Up For One Kg. Basket Of Fruit
    11.6
    2.5
    1.7
    4.1
    3.3
    CONSUMER PRICE
    FARMER
    TRADER
    WHOLESALER
    RETAILER
    Retail Markups
    350
    220
    160
    100
    FARM GATE PRICES
    MILK
    FISH
    FRUITS &VEGETABLES
    Value Chain
  • 33. APMC Reforms - Status
  • 34. Agriculture commodity Market Structure In India
  • 35.
  • 36. Firm Level Issues
    Reliance
    Better Infrastructure
    Supply Chain Management
    Food Safety
    ITC, Ltd.
    Echoupal Fresh
    Supply Chain Management
    Food Safety
    Benefits of a private organized market structure
  • 37. Reliance Fresh
    • Reliance Fresh is the convenience store format which forms part of the retail business of Reliance Industries of India which is headed by Mukesh Ambani. Reliance plans to invest in excess of Rs 25000 crores in the next 4 years in their retail division. The company already has in excess of 560 reliance fresh outlets across the country. These stores sell fresh fruits and vegetables, staples, groceries, fresh juice bars and dairy products.
    • 38. A typical Reliance Fresh store is approximately 3000-4000 square. feet and caters to a catchment area of 1-2 km.
  • E Choupal Fresh
    e Choupal is an initiative of ITC Limited (a large multi business conglomerate in India) to link directly with rural farmers for procurement of agricultural / aquaculture produce like soybeans, wheat, coffee, and prawns. eChoupal was conceived to tackle the challenges posed by the unique features of Indian agriculture, characterized by fragmented farms, weak infrastructure and the involvement of numerous intermediaries.
  • 39. Problems faced by Reliance:
    Recently their stores in Jharkhand faced the ire of mobs comprising of local vegetable vendors. They vandalized and attacked the stores claiming that they were stealing their livelihoods.
    In August 2007, Uttar Pradesh Chief Minister Mayawati ordered to close 10 new stores keeping view of Law & order situation. In November 2007, Reliance Fresh stores are attacked by Bharatiya Janshakti Party supporters headed by Uma Bharti.
    ‘Suicide’ squad against Reliance Fresh outlets'
    Bhubaneswar: Traders and roadside vendors opposing the opening of Reliance Fresh outlets in Orissa on Saturday formed a “suicide” squad.
    “As many as 100 youth today joined the squad as they prefer to die while fighting rather than facing starvation,” All-Orissa Roadside Vendors and Small Shop Owners Association president PratapSahu said.
  • 40. Why companies looking at F&V market….
    Traditionally, agriculture commodities were procured in "mandis" (major agricultural marketing centers in rural areas of India), where the middleman used to make most of the profit. These middlemen used unscientific and sometimes outright unfairmeans to judge the quality of the product to set the price. Difference in price for good quality and inferior quality was less, and hence there was no incentive for the farmers to invest and produce good quality output.
  • 41. Economics of Organized Markets
    Price Spread/ Price stabilization
  • 42. Other MNCs in Agriculture
  • Wal-Mart into India
    Joint venture with Bharathi
    Called Bharathi-Wal-Mart
    Problems
    Political issues
    Location and Rental Issues
    Limited Space
    Similar problems as Reliance and ITC
  • 46. Sources
    CIA World Fact book
    http://rockford-india.com/irrigation-arableland.htm
    www.indexmundi.com
    WHO &FAOhttp://www.fao.org/docrep/meeting/008/ae335e.htm
    Bangladesh Govt.http://www.bangladesh.gov.bd/index.php?option=com_content&task=category&id=89&Itemid=27
    Institutional and Legal Framework of Food Safety Regulations in India
    R. Meheta, J. George; sponsored by Australian Centre for International Agricultural Research (ACIAR), Canberra
    www.itcportal.com/rural-development/echoupal.htm - 13k
    en.wikipedia.org/wiki/Reliance_Fresh - 25k
    www.cargill.co.in/india
    www.monsantoindia.com
    www.syngenta.co.in
    www.bayer.com/en/india.aspx - 30k