Agriculture august2013-130926012103-phpapp01


Published on

Published in: Business, Technology
  • Be the first to comment

Agriculture august2013-130926012103-phpapp01

  1. 1.       
  2. 2. 2nd largest agricultural land Favourable climatic conditions Record production of food grains Largest producer of major agricultural and horticulture crops Increasing farm mechanisation • At 179.9 million hectares, India holds the second largest agricultural land in the world. • With 20 agri-climatic regions, all 15 major climates in the world exist in India. The country also possesses 46 of the 60 soil types in the world. • Total food grains production in India reached an all-time high of 259.32 million tonnes in FY12. Rice and wheat production in the country stood at 105.3 and 94.9 million tonnes, respectively. • India is the largest producer of pulses, milk, tea, cashew and jute; and the second largest producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds. • India is one of the largest manufacturers of various farm equipments like tractors, harvesters and tillers. India manufactures one-third of tractors in the world; the number of tractors in the country is estimated to reach 16 million by 2030 from 4 million in 2012. Source: Ministry of Agriculture, Kotak Securities, Aranca Research
  3. 3. Robust demand Growing demand 1960–61 • Food grain production: 69.3 million tonnes • • Attractive opportunities A large population is the key driver of demand for agricultural products Rising urban and rural incomes have also aided demand growth External demand has also been growing especially from key markets like the Middle East Increasing demand for agricultural inputs such as hybrid seeds and fertilisers Promising opportunities in storage facilities; potential storage capacity expansion of 35 million tonnes under the 12th Five Year Plan • • 2011–12 Food grain production: 259.3 million tonnes Advantage India Competitive advantages • • High proportion of agricultural land (54.7 per cent or 179.9 million hectares) Leading producer of jute, pulses; second-largest producer of wheat, paddy, fruits and vegetables • • • • Policy support The engineering sector is delicensed; Government is increasingin the 100 per cent FDI is allowed Minimum Support Prices (MSPs) to ensure sector higher crop production Due to policy support, there was Schemes like Rashtriya Krishi Vikas cumulative FDI of USD14.0 billion into Yojana (RKVY) incentivises states the sector over April 2000 – February to increase private investment in 2012, making up 8.6 per cent of agriculture and allied sectors total FDI into the country Food period Launched National in that Security Mission (NFSM) to increase production of rice, wheat and pulses Source: Ministry of Agriculture, World Bank, FAOSTAT, Aranca Research
  4. 4. 2000 onwards 1980-2000 1960-80 • • 1950s • • • Stagnation in agriculture • Low growth in crop and grain production (0.4 and 0.1 per cent p.a.) • Food grain production of 59.2 mt in 1952–53, with a yield of 579.8 kg/ha Pioneering work of agricultural scientists and efforts of farmers led to Green Revolution • High Yield Variety (HYV) of seeds, increased use of fertilizers and irrigation resulted in a significant spike in production • Attained food security and reduced import of food grains • • • Expanding cereal production Economic reforms introduced; greater encouragement to exports Surplus of production of agricultural commodities over domestic demand India emerges as a net exporter of agricultural products Increase in population and strong income growth • • • • MNC players brought in better technology Rise in institutional credit for agriculture Government launched NFSM to increase production of commodities Schemes like National Horticulture Mission (NHM) and Bringing Green Revolution in Eastern India (BREI) helped achieve record production Commodity exchanges helped in fair pricing of commodities Source: RBI, Ministry of Agriculture, Aranca Research Notes: NFSM - National Food Security Mission, MNC - Multi National Company, MT - Metric Tonne, P.A. - Per Annum
  5. 5. GDP of agriculture and allied sectors in India reached USD 151.8 billion in FY12 GDP by value added – size of agriculture and allied activities (USD billion) According to the Central Statistical Organisation (CSO), the agriculture and allied sector grew 2.8 per cent in FY12 151.8 147.7 CAGR: 3.3% Agriculture is the primary source of livelihood for about 58 per cent of India’s population 138.0 136.5 136.6 Note: GDP – Gross Domestic Product 129.0 FY07 FY08 FY09 FY10 FY11 FY12 Source: Ministry of Agriculture, Aranca Research
  6. 6. At USD30.5 billion, agriculture accounted for 6.8 per cent of total Gross Capital Formation in FY12 Gross Capital Formation in agriculture and allied activities (USD billion) Under the FY14 Union Budget, planned outlay for various schemes under the Department of Agriculture and Cooperation (DAC) has been fixed at USD11.8 billion Allocation to the Rashtriya Krishi Vikas Yojana (RKVY) in the FY14 budget has been increased to USD2.1 billion, a rise of about 9 per cent from the previous financial year CAGR: 9.7% 30.5 26.5 27.3 27.3 FY09 FY10 FY11 22.0 19.2 Note: RKVY is a central government scheme providing funds to state governments to spend on agriculture FY07 FY08 FY12 Source: Ministry of Agriculture, Aranca Research
  7. 7. There are two major agricultural seasons in India: Kharif and Rabi Production of food grains (million tonnes) in Kharif and Rabi seasons Kharif season lasts from April to September (summer); rice (paddy) is the season’s main crop CAGR:2.9% 128.1 Rabi season lasts from October to March (winter); wheat is the season’s main crop 109.8 116.3 Total food grains production in India reached an all-time high of 259.32 million tonnes in FY12 121.0 118.1 104.0 121.1 131.3 FY08 FY09 FY10 FY11 FY12 123.6 114.2 Kharif Rabi Source: Finance Ministry, Ministry of Agriculture, Aranca Research Note: E - Second Advanced Estimates for FY12
  8. 8. Area sown in FY12* (lakh hectares) Kharif Rabi 39 74 Wheat 13 37 91 Pulses Oil seeds 83 289 Paddy Oilseeds 405 122 Cotton Jowar Maize 140 Pulses Bajra 115 Maize Rice 169 Source: Finance Ministry, Ministry of Agriculture, Aranca Research Note: * Second Advanced Estimates for FY12
  9. 9. Production and yields of wheat and rice During the last five years, production as well as yields of both major crops - rice and wheat - increased significantly 120 Production of wheat and rice reached an all-time high in FY12. Production of wheat reached 94.9 million tonnes, an YoY increase of 9.2 per cent. Production of rice, on the other hand, rose to 105.3 million tonnes, an YoY growth of 9.7 per cent 4.0 105.3 100 3.5 99.2 96.7 96 89.1 80 78.6 94.9 86.9 3.0 80.8 80.7 2.5 60 2.0 FY08 FY09 FY10 FY11 FY12 Production of Wheat (million tonnes) Production of Rice (million tonnes) Yield of wheat (tonnes/ hectare) - RHS Yield of rice (tonnes/ hectare)- RHS Source: Ministry of Agriculture, Aranca Research
  10. 10. India ranks 2nd in global production of fruits and vegetables, and is the largest producer of mango and banana, and has the highest productivity of grapes in the world National Horticulture Mission, National Horticulture Board, Technology Mission for Integrated Development of Horticulture in North-East are some of the initiatives taken by the Government of India to boost the horticulture sector in the country India’s horticulture production rose at a CAGR of 6.4 per cent during FY05-12 Fruit and vegetable production of top four countries (2011) Indian horticulture area and production 300 25 CAGR**:6.0% 257.3 265.9 240.5 250 211.2 214.7 200 182.8 473.1 20 223.1 191.8 15 122.2 74.9 166.9 146.6 25.4 35.3 150 10 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13* Production (million tonnes) Area (million hectares) China India Fruits (million tonnes) USA 16.9 13.5 Italy Vegetables (million tonnes) Source: National Horticulture Board , Assorted Articles, FAO Stat, Aranca Research Note FY13* - Estimates, ** - CAGR Mentioned is for Production
  11. 11. India is among the 10 leading exporters of agricultural products in the world; the country accounted for 2.07 per cent of global agricultural trade in 2012 Agricultural exports from India (USD billion) 39.0 Total agricultural exports from India expanded at a CAGR of 25.2 per cent (to USD39 billion) over FY07-12 CAGR:25.2% 24.4 18.4 17.5 17.7 FY08 FY09 FY10 12.7 FY07 FY11 FY12 Source: Ministry of Agriculture, World Trade Organisation, Aranca Research CAGR - Compound annual growth rate
  12. 12. India exported rice worth USD5.0 billion in FY12, accounting for nearly 12.8 per cent of total agricultural exports Cotton and Guargum meal were the next largest export items in terms of value; they accounted for 11.5 per cent and 8.7 per cent, respectively, of total agricultural exports in FY12 Guargum emerged as major export commodity; the value of exports rose at a staggering CAGR of 334.6 per cent over FY10-12 Key agricultural and allied sector exports from India in FY12 (USD billion) 5.0 Exports of guargum meal (USD billion) 4.5 3,028.6 3.4 2.9 2.7 2.5 1.8 0.9 0.9 0.7 125.5 160.3 FY10 300.1 480.9 FY11 Quantity (000' tonnes) 553.3 FY12 Value (USD millions) Source: Ministry of Agriculture, APEDA, Aranca Research
  13. 13. Punjab and Haryana were the key states of green revolution and continue to be large producers of food grains Uttar Pradesh – largest producer of wheat (30.29 million tonnes) Assam is India’s largest producer of tea Gujarat – largest producer of cotton (12.00 million bales) Karnataka – largest producer of maize (4.09 million tonnes) West Bengal – largest producer of rice (14.85 million tonnes) Madhya Pradesh – largest producer of pulses (4.16 million tonnes) Source: Department of Agriculture & Cooperation, Economic Survey FY13; Note: All figures as of 2011-12
  14. 14. • Population and income growth Demand-side drivers • Increasing exports • Favourable demographics • Growth drivers Hybrid and genetically • credit modified seeds • Mechanisation • Irrigational facilities • Growing institutional • Increasing MSPs • Introduction of new Green Revolution in Supply-side drivers Policy support schemes Eastern India • Opening up of exports of wheat and rice Notes: MSP - Minimum Support Price
  15. 15. Population of India (million) India, the second-most populated country in the world, has to meet food consumption needs of around 1,210 million people 1,210 This is a key demand driver of agricultural growth in the country India’s consumption expenditure is likely to reach USD3.6 trillion by 2020, up from an estimated USD1.0 trillion in 2010 1,029 846 548 FY71 683 FY81 FY91 FY01 FY11 Source: Census of India 2011, Asian Development Bank Aranca Research
  16. 16. Per capita income at factor cost (USD) Domestic demand for agricultural and allied products has not only been rising due to rising population, but also as a result of greater consumption by a wealthier population 1,432 Over FY07-12, India’s per capita income increased at a CAGR of 14.3 per cent to USD1,270 and is estimated to reach USD1,432.2 in FY13* 961 746 Consumption expenditure in India is likely to reach USD3.6 trillion by 2020, up from an estimated USD1.0 trillion in 2010 Indian agriculture has also benefitted from rising external demand and the sector’s wider participation in the global economy 1,111 CAGR:14.3% 1,270 849 650 FY07 FY08 FY09 FY10 FY11 FY12 FY13* Source: Central Statistical Organisation, Aranca Research Note : FY13* - Estimates for FY13
  17. 17. India’s irrigation potential has steadily increased over the years; as of March 2010 it stood at 108.2 million hectares compared to 81.1 million hectares in FY92 Area under irrigation (million hectares) 86.4 In FY11, aided by central government funding, individual states generated additional irrigation potential of 0.6 million hectares under the Accelerated Irrigation Benefit Programme (AIBP) 76.6 63.2 49.8 55.1 63.3 48.0 38.7 38.2 31.1 FY71 FY81 FY91 Gross irrigated area FY01 FY10P Net irrigated area Source: Ministry of Agriculture, Aranca Research Note: P is Provisional Estimate
  18. 18. Gross irrigated area under food grains (‘000 hectares) Gross irrigated area under food grains is estimated to have grown to 58.6 million hectares in FY10(P) Of the wide variety of crops in India, rice and wheat are the most irrigated 58,641 53,609 With growing investments in irrigation, the dependence on monsoons has declined considerably over the years 44,866 37,851 30,117 FY71 FY81 FY91 FY01 FY10P Source: Ministry of Agriculture, Aranca Research Note: P is Provisional
  19. 19. Number of tractors sold Mechanisation helps in raising farm income by increasing productivity and limiting post-harvest losses 607,658 Growing sales of tractors and tillers in India reflects the increasing level of mechanisation in farming; over FY07-12, tractor sales rose at a CAGR of 11.5 per cent CAGR: 11.5% 545,109 393,836 India is the largest manufacturer of tractors in the world, accounting for about one-third of global production 352,835 FY07 346,501 FY08 342,836 FY09 FY10 FY11 FY12 Source: Department of Agriculture and Cooperation, State of Indian Agriculture 2012-13, ICRA Aranca Research Note: E – Estimetes
  20. 20. Number of tillers sold Sale of tillers increased at a CAGR of 22 per cent over FY07-11 55,000 The government has set up a number of Farm Machinery Training and Testing Institutes to train farmers on the operation and maintenance of agricultural equipment DAC proposes to initiate National Mission on Agricultural Mechanisation (NMAM) to spread the benefits of mechanisation among all levels of farmers especially small and marginal ones Notes: DAC - Dept. of Agriculture and Cooperation CAGR: 22.0% 39,900 38,794 35,294 26,135 24,791 FY07 FY08 FY09 FY10 FY11 Apr - Dec 2011 Source: Department of Agriculture and Cooperation, Aranca Research
  21. 21. Production of seeds (‘000 tonnes) The size of India’s seed industry was about USD1.6 billion (estimate) in FY10 3,000 There has been strong growth in the use of hybrid seeds due to their high yield and resistance In FY12, production of certified seeds increased to 2.84 million tonnes from 1.27 million tonnes in FY07 16 2,500 2,158 2,000 Usage of hybrid seeds has been more prevalent in cash crops than food crops 2,839 2,773 1,550 1,500 13 1,791 10 1,268 1,000 7 500 80 82 97 FY07 FY08 FY09 105 175 219 0 4 FY10 FY11 FY12 Foundation seed production ('000 tonnes) Certified seed production('000 tonnes) ( RHS) Breeder seed production ('000 tonnes) Source: Ministry of Agriculture, Aranca Research P – Provisional estimate
  22. 22. Food grain yields (kg/hectare) Usage of hybrid seeds has boosted the yield of food grains to 2,059 kg/ hectare in FY12 from 1,023 kg/ hectare in FY81 The government has been playing a proactive role in promoting greater use of hybrid seeds; it encourages private seed companies by providing a subsidy of 25 per cent of the capital cost subject to a maximum of USD50,000 per unit 1,930 2,059 1,626 1,380 1,023 FY81 FY91 FY01 FY11 FY12 Source: Ministry of Agriculture, RBI, Aranca Research
  23. 23. Institutional credit to the agriculture sector increased at a CAGR of 17.4 per cent during FY07–12 Institutional credit to agriculture (USD billion) 76.8 Farmers are allowed to avail crop loans at an interest of 7 per cent In FY12, the government increased the interest subvention for timely repayment of crop loans to 3 per cent from 2 per cent in FY11 72.1 59.5 47.7 34.7 37.7 16.3 8.9 4.3 FY07 10.1 5.3 FY08 Commercial Banks 9.6 13.2 5.6 FY09 7.3 FY10 Cooperative Banks 9.2 FY11 18.3 11.3 FY12* Regional Rural Banks Source: Ministry of Agriculture, Aranca Research Note: * Figures for FY12 are provisional
  24. 24. Domestic banks (both private and public) are stipulated to provide almost one-fifth (18 per cent) of their net bank credit to agriculture Share of institutional credit to agriculture 74.5% Banks are issuing Kisan Credit Card (KCC) to farmers to provide timely and adequate credit support; by the end of Oct, 2011, 107.8 million KCCs were issued to eligible farmers 52.6% 39.2% 15.7% 8.0% Co-operative Banks 9.8% Regional Rural Banks FY01 Commercial Banks FY11 Source: Annual Report on Agriculture 2010-11, Aranca Research
  25. 25. MSP of rice (USD per quintal) The Indian government increases MSPs regularly to incentivise farmers to enhance production of crops and ensure there is adequate supply The MSP for rice was raised to USD23.0 per quintal in FY13 from USD22.5 per quintal in FY12 CAGR: 10.9% 21.9 19.7 FY10 23.0 FY12 FY13 20.0 FY09 22.5 18.5 Note: MSP is Minimum Support Price FY08 FY11 Source: Ministry of Agriculture, Aranca Research
  26. 26. MSP of Arhar (USD per quintal) Government has increased the MSP of pulses significantly in the past three years to encourage production and thereby reduce the supply shortage 66.8 CAGR: 19.9% MSP for arhar increased USD70.9 per tonnes in FY13 from USD38.5 per quintal in FY08 70.9 65.8 48.5 38.5 FY08 43.6 FY09 FY10 FY11 FY12 FY13 Source: Ministry of Agriculture, Aranca Research
  27. 27. • National Food Security Mission (NFSM) National Food Security Mission was launched in FY08 with an outlay of USD1.2 billion during the 11th Five year plan • It aimed at enhancing the production of rice, wheat and pulses by 10 million tonnes, 8 million tonnes and 2 million tonnes by FY12 • Rajiv Krishi Vikas Yojana (RKVY) Rajiv Krishi Vikas Yojana was launched in FY08 with an outlay of USD5.3 billion during the 11th Five year plan • RKVY aims at incentivising states to increase outlays for agriculture and allied activities there by creating an increased focus on agriculture • Foreign Direct Investment (FDI) Bringing Green Revolution in Eastern India (BGREI) 100 per cent Foreign Direct Investment (FDI) is allowed under automatic route in storage and ware housing including cold storages • FDI policy for agriculture was amended to allow 100 per cent FDI under automatic route for development of seeds • Scheme was launched in 2011, under RKVY, to strategically increase in productivity in Eastern states • BGREI actively promoted various technological interventions and emphasized on collaborative work among institutions, officials and farmers Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research Note: RKVY - Rashtriya Krishi Vikas Yojana
  28. 28. • Government has launched an initiative to spend USD 65.1 million to promote 60,000 ‘pulses villages’ in rain fed areas for increasing crop productivity and strengthening market linkages • Realising that scientific and technical breakthroughs are critical to increasing agricultural productivity, the government, in its FY14 budget, allocated USD711.4 million to incentivise farm research Pulses villages Incentivising agricultural research • Regional Rural Bank Credit Refinance Fund Bringing Green Revolution in Eastern India (BGREI) The government plans to set up a Regional Rural Bank Credit Refinance Fund with a capital of USD2.1 billion to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers • In budget for FY14, the government raised the target for agricultural credit by USD26.04 billion to USD145.8 billion • ISOPOM scheme was launched in 2004 to provide flexibility and promote crop diversification; under ISOPOM, states can utilise the allotted funds to develop a crop of their choice Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research Note: RRB – Regional Rural Bank ISOPOM - Integrated Scheme of Oilseeds, Pulses, Oil palm and Maize
  29. 29. Major Achievements in R&D in Agriculture Expenditure on R&D in Agriculture by government (USD millions) Over 2,300 high-yielding types and hybrid of crops have been developed and approved for commercial cultivation India is the first in the world to develop hybrid cultivars* of cotton, grain pearl millet, castor and safflower, and second to develop cultivars of rice and sorghum CAGR: 11.7% 158.5 138.8 111.1 106.3 107.5 FY08 FY09 High yield varieties of crop have been developed in India; productivity of banana and potato has increased three-fold FY10 FY11 FY12 Source: Indian Council of Agriculture, Ministry of Agriculture, Aranca Research *Cultivars - A variety of a plant that has been created or selected intentionally and maintained through cultivation.
  30. 30. In the Union Budget FY14, the Government of India allocated USD145.8 billion for agriculture credit, an increase of USD26.04 billion compared to FY13 Funds allotted to the Agriculture Ministry increased 22 per cent to USD5.63 billion; of this, USD711.4 million is planned for farm research Total plan outlay for agriculture in FY14 has been raised to USD3.56 billion from USD2.87 billion in FY13 Under the successful scheme of Bringing Green Revolution to Eastern India (BGREI), the government allotted USD 208.3 million to improve agricultural production in Eastern states Government plans to launch crop diversification programmes in states like Punjab and Haryana, and has allotted USD104.1 million to improve yields National Food Security Mission, a scheme to bridge yields gap of major crops, has been provided USD468.7 million Funds for the Integrated Watershed Programme FY14 has been increased from USD0.6 billion to USD1.12 billion in FY13 Source: Ministry of Agriculture, Union Budget 2013-14, Aranca Research
  31. 31. The Green Revolution started around 1965 in India, especially in the states of Haryana and Punjab, to increase the production of food grains The movement helped the country to reduce imports and become self-sufficient in food grains Food grain production more than doubled to 150.4 million tonnes in FY86 from 72.4 million tonnes in FY66 Agricultural infrastructure improved during this period with dependence on monsoons going down due to better irrigation facilities Double cropping existing farmland Food grain production (million tonnes) 150.4 129.6 108.4 121.0 Expansion of farming areas 72.4 FY66 FY71 FY76 FY81 FY86 Green Revolution High yielding seeds Use of pesticides and fertilizers Source: Handbook of Indian Statistics, Aranca Research
  32. 32. The Bringing Green Revolution to Eastern India (BREI) started in 2011, with special focus on the production of rice and wheat The government used a cluster-based approach, private sector participation and strategic interventions relating to crop production, water harvesting and recycling The movement helped the region to increase productivity of rice, which was previously among the lowest in India Rice production in Eastern states increased by about 20 per cent to 487.6 lakh tonnes in FY12 from 403.2 lakh tonnes in FY10 BGREI has increased demand for farm machinery and equipment, and adoption of hybrid rice Promotion of high yield varieties Rice production in Eastern states of India (lakh tonnes) 34.2 15.4 Jharkhand Cluster based approach 60.3 41.1 Chhattisgarh Bihar 74.4 54.8 Involvement of private sector 72.0 36.0 Uttar Pradesh (East) Bringing Green Revolution to Eastern India Total for seven states 403.2 0 100 FY12 200 300 FY10 400 487.6 Ground and rain water utilisation 500 Source: Ministry of Agriculture, Aranca Research
  33. 33. Salient characteristics • Rallis is a leading player in the agricultural inputs business and one of the largest player in agri chemical business • Crop protection is the major segment for the company and it plans to expand its presence in seeds and PGN • As part of the above mentioned plans, Rallis acquired a research-led seeds company ‘Metahelix’ and launched a PGN product in the name of ‘Ralligold’ • Rallis India has set up Rallis Farm Management services to undertake contract farming • Rallis Research centre has won the prestigious New Millennium Indian Technological Leadership Initiative award for a molecule discovery Major business segments Crop protection Agri services Rallis Contract farming Seeds and PGN Note: PGN - Plant Growth Nutrients
  34. 34. Profit before taxes (USD million) Net sales (USD million) 233.8 40.4 260.6 36.4 213.8 182.2 32.2 185.4 167.6 FY08 31.1 28.4 FY12 9MFY13 23.3 FY09 FY10 FY11 FY12 9MFY13 FY08 FY09 FY10 FY11 Source: Company website, Aranca Research
  35. 35. • • • New agri business, which provides inputs such as seeds, fertilisers along with providing advice and training farmers on latest agricultural practices It introduces efficiencies into the whole gamut of agri practices Provides assistance to sell products at appropriate prices Logistics Agricultural inputs Farm management services • Limited arable land against growing population makes agricultural inputs crucial • Huge opportunity exists for agri input segments like seeds and plant growth nutrients • In India, commercial seeds only account for minor percentage (25 per cent) and huge demand is expected for quality branded seeds • The 12th Five Year Plan estimated a potential storage capacity expansion of 35 million tonnes • Cold storage capacity needs to grow rapidly from the current level of 24 million tonnes • Private warehouse operators are supported by multiple income streams, subsidy and available of credit Source: Ministry of Agriculture, Aranca Research
  36. 36. • FDI in multi – brand retail The government has allowed up to 51 per cent FDI in multi-brand retail which will positively influence agriculture and enable its modernisation even further • Foreign investors are likely to bring in efficiencies, especially in food supply chains; they are likely to invest in logistics such as warehouses and cold storages • Direct procurement from farmers will likely result in higher prices for the farmer and lower ones for the consumer • National Food Security Bill Under the proposed National Food Security Bill, government guarantees beneficiaries a prescribed quantity of food grains at heavily-discounted prices • To meet the demand that could emanate from implementation of the bill, the government will take measures to raise productivity • The government is likely to invest more on the storage infrastructure, which will reduce wastage and thereby lead to lower prices Source: Ministry of Agriculture, Aranca Research
  37. 37. Companies provide R&D and agricultural implements to farmers Foreign companies practicing contract farming in India Contract Farming in India Regular and timely payments to farmers and credit facilities State Crop Cargill India Pvt Ltd Stable and steady supply of quality farm output for companies Company Madhya Pradesh Wheat, Maize and Soya bean Hindustan Lever Ltd Madhya Pradesh Wheat ITC - IBD Madhya Pradesh Soybean Nestle India Ltd Pepsi Foods Pvt Ltd Lesser logistics cost for both, farmers and companies Reduces the price risk fluctuations and saves land investments for companies Punjab Punjab, TN Milk Chillies, Groundnut, seaweed, Tomato and Basmati Rice Source: Company reports, Assorted articles, Aranca Research
  38. 38. Groundnut • Contract farming agreement with farmers in Punjab • PMG technology sourced from china • Company supported farmers in R&D and other farm activities • Farmer started to grow two crops in one year Pepsi Co • Yields increased to 3-4 tonnes per hectare, much above national average of 1 tonnes per hectare Model extended to other states Barley • Created procurement centers to procure Barley in Rajasthan SAB Miller • Provide higher-quality certified seeds and training to 5,600 farmers in Rajasthan • Increase in yields from 1.9 tons a hectare to 3.8 tonnes a hectare within the space of one year Others followed the model Source: Company Reports, Assorted Articles, Aranca Research Note: PMG - Plastic Mulch Groundnut
  39. 39. Autonomous Bodies • National Institute of Agricultural Extension Management Rajendranagar, Hyderabad–500 030, Andhra Pradesh Phone: 040-24016702 to 706 Fax: 040-24015388 • National Institute of Agricultural Marketing (NIAM) Bambala, Kota Road Jaipur–302033, Rajasthan Phone: 0141-2770027 Fax: 0141-2771938, 2770027 Boards • Central Insecticides Board and Registration Committee Machinary Store Building, N.H.IV Faridabad Phone: 0129 -2413002 • Coconut Development Board Kera Bhavan, SRVHS Road, Kochi Kerala–682011 Phone: 0484-2376265, 2377267, 2376553 Fax: 0484-2377902
  40. 40. • National Dairy Development Board (NDDB) PB No 40, Anand–388 001 Phone: 02692-260148/260149/260160 Fax: 02692-260157 • National Horticulture Board (NHB) Ministry of Agriculture, Government of India 85, Institutional Area, Sector-18 Gurgaon–122015, Haryana • National Oilseeds and Vegetable Oils Development Board (NOVOD) 86, Institutional Area, Sector-18 Gurgaon–122015, Haryana Councils • Indian Council of Agricultural Research (ICAR) Krishi Bhavan, New Delhi 110 114 Phone: 91-11-25846010
  41. 41. AIBP: Accelerated Irrigation Benefit Programme Breeder seeds: Seeds move from germplasm ( research) stage to breeder stage CAGR: Compound annual growth rate Certified/quality seeds: Foundation seeds are further multiplied to get certified seeds, which are sold to farmers FMTTI: Farm Machinery Training and Testing Institutes Foundation seeds: Breeder seeds are multiplied as foundation seeds FY: Indian financial year (April to March) – FY12 implies April 2011 to March 2012 KCC: Kisan Credit card MSP: Minimum Support Prices NFSM: National Food security mission NMAM: National Mission on Agricultural Mechanisation PGN: Plant Growth Nutrients
  42. 42. RKVY: Rashtriya Krushi Vikas Yojana is a central government scheme providing funds to state governments to spend on agriculture Wherever applicable, numbers have been rounded off to the nearest whole number
  43. 43. Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year) Year INR equivalent of one USD Year INR equivalent of one USD 2004-05 44.95 2005 45.55 2005-06 44.28 2006 44.34 2006-07 45.28 2007 39.45 2007-08 40.24 2008 49.21 2008-09 45.91 2009 46.76 2009-10 47.41 2010 45.32 2010-11 45.57 2011 45.64 2011-12 47.94 2012 54.69 2012-13 54.31 2013 54.45 Average for the year
  44. 44. India Brand Equity Foundation (IBEF) engaged Aranca to prepare this presentation and the same has been prepared by Aranca in consultation with IBEF. All rights reserved. All copyright in this presentation and related works is solely and exclusively owned by IBEF. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of IBEF. This presentation is for information purposes only. While due care has been taken during the compilation of this presentation to ensure that the information is accurate to the best of Aranca and IBEF’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice. Aranca and IBEF neither recommend nor endorse any specific products or services that may have been mentioned in this presentation and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this presentation. Neither Aranca nor IBEF shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidance taken from any portion of this presentation.