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EMERGING OPPORTUNITIES IN AGRI BUSINESS

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Title: EMERGING OPPORTUNITIES IN AGRI BUSINESS


1
WELCOME
2
Scope and Importance of Agripreneurship
Development
Dr. N.R. PADMANABAN Professor Head
Department of Social Sciences Anbil
Dharmalingam Agricultural College and Research
Institute, Tamil Nadu Agricultural University
Trichy - 9
3
  • John H. Davis Harvard University first person
    Agri business 1955
  • In 1980s, three connotations
  • Synonymous with agriculture
  • Synonymous with agricultural economics
  • Modified agriculture excluding farming or off
    farm Agri.
  • AB means all business enterprises that buy from
    or sells to farmers / traders / consumers
  • Three components of AB
  • Productive resources seed, fertilizer,
    equipment, machine.
  • Agricultural commodities raw and processed
    commodities.
  • Facilitative services credit, insu., mark.,
    stor., proc., trans., etc.,

4
EMERGING OPPORTUNITIES IN AGRI BUSINESS
  • Varied agro climate offers enormous scope for
    production of temperate, sub tropical and
    tropical agro produces
  • Enormous demand for Agri. inputs like seed,
    fertilizer, bio fertilizer, pesticides, feed
    and fodder, so on.
  • Seed Hybrid, GM, improved seeds
  • Bio technology in Agri. seed, fertilizer, bio
    control agency, microbes for bakery products
  • Export of Agricultural produces cereals,
    pulses, oilseeds and oils, spices and condiments,
    fruits and vegetables, flowers, medicinal plants
    and essential oils, agricultural advisory
    services, agricultural tools and implements,
    meat, milk and milk products, fish and fish
    products, ornamental fish, forest by products
    etc.

5
EMERGING OPPORTUNITIES IN AGRI BUSINESS
  • Horti. fruits, vegetables, flowers (cut
    flowers), ornamentals,
  • Organic farming - vast scope
  • Processing Increased popul., urbani.,
    indust., working women,
  • civilization and less
    timing for cooking
  • Fishery gt 8000 km (costal), inland,
    rivers, ponds, tanks,
  • ornamental fish
  • Livestock - Meat- mutton, chicken, pork,
    beef, milk and
  • milk products, egg -
    increased dd
  • Forestry - Timber, fuel, lac, resin, gum,
    medicinal plants
  • and other forest by
    products ( paper and pulp)
  • Sericulture - Silk industry
  • Mushroom - Button, oyster, paddy straw
    delicious food

6
INEFFICIENCIES OF INDIAN AGRICULTURE
 
Indian wastes more fruits vegetables than are
consumed in UK Cumulative waste is about 6.7
billion which is equivalent to 40 of the total
horticulture produce Poor infrastructure and
logistics support Rough and unorganized handling
7
Indias Annual Average Growth Rate
Five Year Plan Overall GDP growth rate Agriculture and Allied source
Seventh Plan (1986-1990) 9.0 3.2
Eighth Plan (1992-1997) 6.7 4.7
Ninth Plan (1997-2002) 5.5 2.1
Tenth Plan (2002-2007) 7.6 2.3
Eleventh Plan(2007-2012) 8.16 3.6
Twelfth Plan (20122017) (target) 8 4
8
Capital Formation in Agriculture
  • Investment in agriculture as a percentage of GDP
    at constant prices 1990-91 1.92
  • 90-91 - Rs.14836 crores (10441 Pvt., 4395
    Public)
  • 05-06 - Rs. 54539 crores (41320 Pvt.,
    13219 Public)
  • 2010-11 - Rs.1,42,254 crore
  • The  Gross capital formation (GCF) in the
    agriculture and allied sectors in the country
    rose by 87 per cent to Rs 1,42,254
    crore in the 2010-11 as compared to 2004-05. 

9
Agricultural Marketing
  • 7566 regulated markets.
  • 21780 rural primary agricultural markets
  • Public- Private -Partnership (PPP)- emerging
    focus
  • Marketing reforms - MOA - New model law
    enables establishment of Private markets, direct
    purchase centres, consumers markets, farmers
    markets, PPP, etc.
  • Provision for State Agricultural Produce
    standards bureau for grading and
    standardization quality certification.
  • MNCs, Big corporate are entering agrl. marketing.

10
FOOD PROCESSING INDUSTRY IN INDIA
 India ranks first in the world in cereal and
milk production and second in fruits vegetables
and in five producers of groundnut, rice, wheat,
tea, coffee, sugar, spices oil seeds. Even
with an industry size of US 70 billion, process
less than 2. The industry has about 1.6 mn
direct employees and accounts for about 13 of
the countrys exports and 6of the industry
investment.
11
SUPPLY CHAIN MANAGEMENT
Data integration, Financial flow management,
Supply-demand matching, Collaborative
forecasting, Information sharing, Goods
movement synchronization through efficient
transport scheduling
12
PRODUCTION AGRL. PRODUCE (MILLION TONNES)
Crops 1951 2001-02 2010-11
Rice 20.58 93.08 96.0
Wheat 6.46 71.81 86.9
Bajra 2.60 8.35 10.4
Maize 1.73 13.30 21.7
Jowar 5.50 7.79 7.0
Total cereals 42.41 198.83 226.3
Total Pulses 8.41 13.19 18.2
Total Food grains 50.82 212.02 244.5
Ground nut 3.48 7.21 8.3
Total oil seeds 5.16 20.80 32.5
13
PRODUCTION AGRL. PRODUCE (MILLION TONNES)
Crops 1951 2001-02 2010-11
Sugarcane 57.05 300.10 342.4
Cotton (Million Bales) 3.04 10.09 33.0
Fruits NA 49.50 74.87
Vegetables NA 85.00 146.54
Total FV NA 134.50 221.42
Milk 17.0 84.60 121.8
Source S.S. Acharya and N.L. Agarwal, Agrl.
Marketing in India, ( New Delhi Oxford and
IBH, 2004) Economic Survey various issues
14
INDIAS EXPORTS OF AGRO PRODUCTS
Qty in MT Value in Rs Lakhs
Cereals
  2010-11 2010-11 2011-12 2011-12 2012-13 2012-13
Cereals Qty Value Qty Value Qty Value
Non Basmati Rice 100685 23128.8 3997719 865912 6687990 1444880
Wheat 394.47 69.96 740746 102326 6514810 1052900
Maize 3010423.4 335946 3855721 515751 4788328 709634
Other Cereals 209647.62 28902.0 217962 33540 652975 108427
Total 5691810 1523511 11990324 3062491 22104004 5256781
15
INDIAS EXPORTS OF AGRO PRODUCTS
Qty in MT Value in Rs Lakhs
Floriculture products
  2010-11 2010-11 2011-12 2011-12 2012-13 2012-13
PRODUCT Qty Value Qty Value Qty Value
Floriculture 28906.79 29604.04 30926.02 36532.15 27121.8 42344.6
Fruits Vegetables Seeds 11622.33 18491.77 15205.81 28776.35 17168 34772.39
Total 40529.12 48095.81 46131.83 65308.5 44289.8 77116.99
16
INDIAS EXPORTS OF AGRO PRODUCTS
Qty in MT Value in Rs Lakhs
FRESH FRUITS VEGETABLES
Commodity 2010-11 2010-11 2011-12 2011-12 2012-13 2012-13
Commodity Qty Value Qty Value Qty Value
Fresh Onions 1182324.2 177928.62 1309924.8 172299.8 1666872.6 196662.66
Other Fresh Vegetables 499320.05 92138.76 734178.83 131048.2 768627.2 151633.56
Walnuts 5762.34 16629.25 5841.56 23108.4 5295.47 19983.57
Fresh Mangoes 58863.41 16483.6 63441.29 20974.3 55584.99 26471.78
Fresh Grapes 98005.12 42830.28 108584.57 60288.15 172744.42 125942.78
Other Fresh Fruits 255024.83 51175.27 270437.2 75541.11 263970.29 77975.78
Total 2099300 397185.8 2492408 483260 2933095 598670.1
17
Contd..
INDIAS EXPORTS OF AGRO PRODUCTS
Qty in MT Value in Rs Lakhs
PROCESSED FRESH FRUITS VEGETABLES
Commodity 2010-11 2010-11 2011-12 2011-12 2012-13 2012-13
Commodity Qty Value Qty Value Qty Value
Cucumber and Gherkins( Prepd. Presvd) 209231.83 51525.79 258603 74503.45 238624.89 85659.18
Dried Preserved Vegetables 49009.12 37333.5 64794.09 52678.47 68520.25 63795.76
Mango Pulp 170219.72 81893.27 150499.06 62082.91 147815.69 60855.73
Other Processed Fruits Vegetables 199868.41 99704.05 274807.05 157759.82 269217.26 173305.54
Pulses 209010.49 87004.28 174625.18 106793.13 202751.36 128500.32
Total 837339.6 357460.9 923328.4 453817.8 926929.5 512116.5
18
Contd..
INDIAS EXPORTS OF AGRO PRODUCTS
Animal Products
Qty in MT Value in Rs Lakhs
Commodity 2010-11 2010-11 2011-12 2011-12 2012-13 2012-13
Commodity Qty Value Qty Value Qty Value
Buffalo Meat 726670.22 861324.17 986618.46 1374574 1107506.3 1741289.3
Sheep/Goat Meat 12298.38 25879.45 11181.04 25522.07 16046.91 42565.86
Other Meat 1021.79 967.42 318.33 364.34 194.13 233.33
Processed Meat 922.2 1395.53 575.94 949.53 796.92 937.41
Poultry Products 516754.71 31433.28 624181.11 45805.29 577864.27 49493.41
Dairy Products 37435.87 54797.37 25639.51 28935.68 87824.21 141209.83
Natural Honey 25979.21 30086.76 26089.03 32123.96 25780.7 35632.05
Albumin ( Eggs Milk ) 1235 3954.66 1454.31 5302.71 1663.83 9016.14
Total 1334705 1049954 1677820 1520002 1831931 2077840
19
Existing Markets for Export of Major
agricultural commodities from India
Commodity Countries
Tea Russia, UK, Iran, Japan, Germany, Egypt, UAE, Saudi Arabia, Poland, Afghanistan, Australia, Czechoslovakia, USA and Yugoslavia
Coffee Russia, Yugoslavia, Italy, Japan, Germany, Romania, Australia, Belgium, Finland, France, Iraq, Kuwait, Norway, Spain, UAE, USA and UK
Basmati rice Saudi Arabia, Russia, Japan, Oman, Nepal and Kuwait
Wheat Vietnam socialist Republic
Tobacco (manufactured) Saudi Arabia, Russia, Japan, Oman, Nepal and Kuwait
20
Commodity Countries
Spices USA, Russia, Saudi Arabia, UAE, UK, Japan, Canada, Czechoslovakia, Germany, Italy, Nepal, Netherlands, Pakistan and Yugoslavia.
Cashew Kernels Russia, Netherlands, Czechoslovakia, USA, Singapore, Japan, Australia, Canada, China, Germany and Hong Kong
Groundnut Russia, Czechoslovakia, Germany, Netherlands, Singapore, Yugoslavia and UK.
Oilcakes Russia, Romania, Saudi Arabia, Czechoslovakia, Germany and Poland
Raw Cotton Japan, Romania, Russia, Poland, China, Hong Kong, Bangladesh, Belgium, Germany, Italy, Korea, UK, Switzerland and Singapore.
21
Commodity Countries
Fresh Fruits UAE, Saudi Arabia, Kuwait, Bahrain, Qatar, UK, Bangladesh and Russia
Fresh Vegetables Saudi Arabia, UAE, Oman and Singapore
Onion Malaysia, Sri Lanka and Middle East
Processed fruits and vegetables Russia, UK and Middle East
Source Vikas singhal, Indian Agriculture
22
Types of Agribusinesses
Most of the small businesses can be classified as
following types Production Retailing Distributio
n Personal services Professional
services Financial Franchising
23
Entrepreneurial opportunities in agriculture
Farming (on farm) Crop Dairy/Poultry/Goat Fish
Rabbit vegetables Flowers Ornamental plants
Palmyra Fodder Sericulture Agro-forestry
Beekeeping Mushroom
24
Entrepreneurial opportunities in agriculture
Inputs marketing Fertilizer Agricultural
Chemicals Seeds Machineries Animal feed
Poultry hatchery Landscaping Vet medicines
Agricultural credit Custom service Bio-control
units Bio-tech units
25
Entrepreneurial opportunities in agriculture
Product marketing Wholesale Retail Commission
Agent Transport Export Finance Storage
Consultancy
26
Entrepreneurial opportunities in agriculture
Processing Milk Fruits Vegetables Paddy
Sugarcane Cashew Coir Poultry Cattle
Tannery Brewery
27
Entrepreneurial opportunities in agriculture
Facilitative Research and Development Marketing
Information Quality control Insurance
Energy
28
SEED INDUSTRY
  • 1950s Few hundred quintals of seed
  • 21 state seed corporation
  • 101 notified STL / 7 in Tamil Nadu
  • NSC estd., in 1963
  • Around 100 major private sector seed companies
  • 75-80 percent of the hybrid maize, sorghum,
    millets, sunflower, cotton and vegetables
    marketed by private firms.
  • Hybrid rice 95, Hybrid maize 98 and 100
    sunflower by private
  • AP seed capital of India (59 of cotton, 86
    maize, 93 sorghum etc.,)

29
  • The major private players are
  • MAHYCO,
  • Indo American hybrid Seeds,
  • Proagro Seeds,
  • Mahindra Hybrid Seeds,
  • Krishi Dhan,
  • Nath Seeds,
  • Nizuveedu Seeds,
  • Cargill Seeds,
  • Kanchan Seeds,
  • ankur Seeds, Advanta (India),
  • Syngenta,
  • Spic PHI-Biogene,
  • Ajeet Seeds,
  • Paras Extra Growth,
  • Ganga Agri. Seeds,
  • shriram Bioseeds,
  • Raasi Seeds,
  • Sun Seeds and J.K. Agri-gemetics, etc.

30
Year wise requirement and Availability of quality
SEED
Lakh qtl
31
SEED Production in India
32
TRANSGENIC SEEDS
  • GM seeds as shown rapid growth in USA in recent
    times
  • BT (Bascillus Thuringiensis soil Bacterium)
    cotton introduced in India October, 2002.
    resistance to American boll worm.
  • Recorded 35 higher yield
  • Monsanto MAHYCOs Bt Cotton
  • Raasi Bt cotton

Source Vikas singhal, Indian Agriculture
33
BIO TECHNOLOGY
  • Altering or introduction of a character or
    evolving a new organism using invitro techniques
  • Bio Technology

Plant Tissue culture
Animal Cell Culture
Transgenic crops/ Animals / Microbes
commercial
drugs/ medicines
34
PLANT TISSUE
CULTURE
Commercial
Micro propagation
Secondary metabolite production
Alkaloids (medicines)-using cell culture
Mass multiplication of plantlets Under invitro
with small space initial plant materials
With small fermenting industry
Initial cost 50.00 lakh for small lab
Variable medicines
Production 1 crore seedlings
35
BIO TECHNOLOGY COMMERCIAL FIRMS
  • TERI New Delhi
  • Harrison Malayalam Kerala
  • SPIC Bio Tech Chennai
  • Grow more Dharmapuri
  • Indo American, Rallis India Bangalore
  • Tissue Culture Plants Banana (Grant
    , Robusta)
  • Pomegranate
  • Cardamom
  • Archids / cut flowers
  • Tree plants / Tea

36
FLOW OF INSTITUTIONAL CREDIT TO AGRICULTURE
(CRORES)
Year Cooperative Banks Commercial Banks RRB Grand Total
1980-81 2126 1263 - 3389
1990-91 3973 5010 - 8983
2002-03 35111 41217 5745 82073
2010-11 78121 345877 44293 468291
Source Govt. of India, Economic Survey various
years
37
PRODUCTION AND CONSUMPTION OF CHEMICAL
FERTILIZERS
(lakh tonnes)
Year Domestic Production Imports Consumption
1951-52 0.39 0.52 0.70
1990-91 90.44 27.58 127.00
2001-02 146.28 20.91 167.02
2011-12 163.61 123.68 277.40
Source Fertilizer Statistics
38
FERTILIZER CONSUMPTION PER HECTARE OF GROSS
CROPPED AREA
Year Consumption per ha of GCA (Kg)
1960-61 1.90
1970-71 13.60
1990-91 72.57
2001-2002 90.12
20011-12 144.33
Source Fertilizer Statistics
39
BIO FERTILIZERS  
Rhizobium - Earlier Now Azotobactor ,
Azolla , Azoapirillum, Cyanobacteria (BGA) PSM
(Phosphate Solubilizing Micro organism)   Potentia
l demand for bio fertilizer 3.4 lakh
tonnes (Biotech consortium, Delhi) Azolla
application N by 25-30
 
40
BIOFERTILIZERS PRODUCTION STATUS IN INDIA  
41
Biofertilizer demand in Tamil Nadu for principal
crops
42
CROP WISE AREA AND CONSUMPTION OF PESTICIDES
Crop of Total use of pesticides of total area under the crop
Cotton 52-55 5
Paddy 17-18 24
Hort. Crops 13-14 3
Plantation crops 7-8 2
Other cereals, millets and oil seeds 6-7 58
Sugarcane 2-3 2
Other crops 1-3 6
43
PRECISION FARMING
  • At Dharmapuri by TNAU Horti.
  • Employs fertigation, bio control, bio fertilizer
    for quality and pesticide residue free Ag.
    Produces
  • Flower and vegetable crops
  • Bio fertilizers instead of chemical fertilizers
  • Bio pesticides instead of chemical pesticides
  • Solves environmental and pollution problems
  • Drip irrigation for vegetable crops

44
GODREJ AGROVET LTD.
  • The plant with a capacity of 8000 tonnes per
    annum is producing chilled chickens for the
    market of Pune, Nasik and Mumbai.
  • The chicken market in Mumbai also is valued at Rs
    400 crores.
  • The company had a 4000 tonnes per annum capacity
    chicken processing plant at Bangalore- catering
    to the markets in Chennai, Bangalore, Kochi,
    Mangalore and Goa
  • The raw chicken market in the country is growing
    at about 10 per cent per annum while the growth
    rate of processed chicken market is about 2 per
    cent.

45
SUGUNA POULTRY FARMS LTD.
  • It produces two lakh broilers per day.
  • Sells 80 million birds annually out of 1200
    million
  • Rearing arrangements in Karnataka, AP, Maharastra
    and Kerala besides in TN produces 2.5 lakh tonnes
    poultry feed annually.
  • In 200, it bring down its chicken rearing cost by
    choosing its own grand parent breeding facility.

46
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MEDICINAL PLANTS
  • In India about 9500 species of medicinal plants
    were well documented and a number of others not
    documented
  • At present there are some 9000 units in the
    country producing ayurvedic medicines.
  • About 50 units operate in the large scale, 200 in
    the medium scale and the rest in the small and
    cottage scale.
  • In India exports medicinal plants, their extracts
    and ayurvedic medicines to the US, Germany,
    Russia, UK, Taiwan, the UAE, Hong Kong and
    Malaysia

51
MEDICINAL PLANTS
  • India continues to be ranked the world's second
    largest exporter of medicinal plants after China
    as the trade in herbals registered around 137
    percent growth in last five years.
  • India has 5,662 varieties of medicinal plants and
    of these trading takes place in 460, while 178
    are exported in huge quantities (over 100 metric
    tonnes per year).
  • The global trade of medicinal plants stands at
    7,592 million in 2011, and of these China and
    India's share was around 1,329 million and 790
    million respectively
  • India has registered a growth of 137 percent in
    export of medicinal plants in global market from
    Rs.554 crore in 2005-06 to Rs.1,318 crore in
    2010-11.

52
SILK
  • India is world second largest producer of silk
    after Chine
  • Share in world silk production - 17 against 75
    of China
  • Mulberry silk - produced - Karnataka, West
    Bengal, Jammu Kashmir, Assam, Punjab. TN and
    AP.
  • Tasar silk is produced from silkworms that eat
    leaves of oak, asan and arjan trees.
  • Tasar silk is mainly produced in Bihar and West
    Bengal.
  • Muga silk is produced from silk warms that eat
    leaves of som and soalu trees.
  • It is produced only in Assam. The silk has a
    natural rich golden color.

53
WOOL
  • Production of wool in India - 45 million kg.
  • 15-16 million kg is suitable for carpets.
  • The rest is coarse, inferior, black wools
    unsuitable for use in carpet market
  • India does not produce apparel wool at all.
  • India imports 50-60 million kg wool from New
    Zealand, Australia
  • The annual imports of raw wool amount to Rs. 700
    crores and the exports of woolen goods Rs. 2000
    crores.

54
EXPORT OF ORGANIC PRODUCTS
  • India ranks 10th among the top ten countries in
    terms of cultivable land under organic
    certification.
  • The certified area includes 10 cultivable area
    with 0.50 million Hectare and rest 90 (4.71
    million Hectare) is forest and wild area for
    collection of minor forest produces.
  • Total area under organic certification is 5.21
    million Hectare (2012-13).
  • India produced around 1.34 million MT of
    certified organic products which includes all
    varieties of food products namely Sugarcane,
    Cotton, Basmati rice, Pulses, Tea, Spices,
    Coffee, Oil Seeds, Fruits and their value added
    products.
  • Among all the states, Madhya Pradesh has covered
    largest area under organic certification followed
    by Rajasthan and Uttar Pradesh.

55
EXPORT OF ORGANIC PRODUCTS
  • India exported 135 products last
    year (2012-13) with the total volume of 165262 MT
    including 4985 MT organic textiles.
  • The organic agri export realization was
    around 374 million US including 160 US  organic
    textiles registering a 4.38growth over the
    previous year.
  • Organic products are exported to EU, US,
    Switzerland, Canada, South East Asian countries
    and South Africa.
  • Oil seeds - Soybean (41) lead among the products
    exported followed by Cane Sugar (26), Processed
    food products (14), Basmati Rice (5), Other
    cereals millets (4), Tea (2), Spices (1),
    Dry fruits (1) and others.

56
ORGANIC PRODUCTS EXPORTED
  • Basmathi Rice
  • Cotton
  • Mango
  • Cashewnut
  • Sesame
  • Pine apple
  • Wheat
  • Wall nut
  • Tea
  • Coffee
  • Spices
  • Herbal products
  • Pulses

57
EXPORT DESTINATION
  • USA
  • Canada
  • Nether lands
  • UK
  • Germany
  • Belgium
  • Swiss
  • France, Italy and Spain
  • Saudi Arabia and UAE
  • Japan and Singapore
  • Australia
  • South Africa

58
STEPS BY GOVERNMENT FOR PROMOTING ORGANIC PRODUCTS
  • National Steering Committee set up by ministry of
    commerce.
  • They developed natural standards based on
    international regulations
  • Accreditation and Certification agencies
  • For exports of organic products certification is
    mandatory
  • Accreditation agencies are
  • Agricultural and Processed food products Export
    Development Authority (APEDA)
  • Coffee Board
  • Tea Board
  • Spices Board
  • Coconut Devt. Board
  • Directorate of Cashew and Cocoa Devt.

59
PRIVATE CERTIFICATION AGENCIES
  • Recognized by accreditation agencies
  • ECOCERT International (Based in France and
    Germany, Branch at Aurangabad)
  • IMO Pvt. Ltd. (Institute of Marketecology)
    (Based in Swiss, branch at Bangalore )
  • INDOCERT (Based in India, office at Aluva,
    Kerala)
  • LACON. GmbH (Based in Germany, office in Aluva,
    Kerala)
  • SKAL International (Based in the Nether lands,
    branch office in Mumbai)
  • SGS India Pvt. Ltd (Based in Swiss, office in
    Delhi and other cities)

60
PROCESSED FOOD MARKETS
  • Processed food industry 175000 crores in 2005
  • Less than 2 of fruits and vegetable processed
  • 80 in Malaysia, 78 in Philippines
  • If 10 processing needs 140000 crores
    investment
  • It will generate employment to 77 lakh persons
  • It reduce wastages by 80000 crores

61
Conclusion
  • Agri business in India offers greatest /
    unlimited scope in the years to come
  • Especially in the following areas
  • Organic farming products
  • Processing of fruits and vegetables
  • Processed food and food products
  • Bio technology and its applications
  • Corporate farming / contract farming
  • Floriculture
  • Dairy, poultry and fisheries

62
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