A STUDY ON AGRO-INDUSTRIES RELATED TO BASMATI CULTIVATION

FOR THE PARTIAL FULLFILMENT OF MBA (Agri-Business)

SUBMITTED BY:ARUP RATAN DE ROLL NO- 15509V084006

SUBMITTED TO: -

CENTER FOR AGRI MANAGEMENT, DEPARTMENT OF BUSINESS ADMINISTRATION, UTKAL UNIVERSITY, BHUBANESWAR-751004

DECLARATION
This is to declare that I, Arup Ratan De is student of MBA (AgriBusiness) 2008-2010 batch of Centre for Agri-Management, Department of Business Administration, Utkal University, Bhubaneswar have given original data and information to the best of our knowledge in the project report titled A Study on Agro-based industries related to Basmati cultivation for the partial fulfillment of the requirements towards the completion of the said course.

Date: Place: Bhubaneswar Arup Ratan De Centre for Agri-Management, Utkal University, Bhubaneswar

ACKNOWLEDGEMENT
Acknowledgement in our opinion is very difficult to write in words, where we feel emotional and at the same time need to recall all those incidents, where we

received help from others. With due regards and foremost responsibility, we first thank God and all those who may have contributed on providing insight for this project report writing directly or indirectly. Then we extend our thanks to Sri B.B. Bhuyan Academic Head Sri Sushant Pujari Chairman and Sri Deepak Ram Course Director, and Sri Manoj Bal faculty cum Placement Co-ordinator for providing valuable suggestions and criticism. Apart from them we thank all the staff and faculty members of MBA (AgriBusiness) Utkal University. We offer our sincere thanks to our relatives, seniors friends without which the project would not have been a success. Last but not the least we thank all the Managers and Respondents of the Companies for providing their valuable co-operation during the project. Date: CAM, Utkal Arup Ratan De

CONTENTS
SECTION NO. PARTICULAR
I. II.

DECLARATION ACKNOWLEDGEMENT

INTRODUCTION METHODOLOGY RESULTS AND DISCUSSION CONCLUSION AND RECOMMENDATIONS APPENDIX QUESTINNAIRE

3 4

Section- 1

Introduction:

Basmati Rice is a global trade name associated with premium quality rice worldwide. Basmati is non glutinous rice that has been cultivated at the foot of the Himalaya mountain range in India for thousand of years. The river Yamuna and Sutlej irrigate Basmati rice in Haryana and Punjab respectively. Basmati is an aromatic, fragrant, long grain, slender rice and has a nutty flavour. Basmati when translated from Hindi, means Queen of fragrance. India is the largest producer and exporter of Basmati rice across the world. Many of the traditional rice dishes in the Gulf countries are cooked with long grained Basmati rice imported from India. European Union is the next important destination for Indian Basmati. Haryana accounts around 50% of area under Basmati rice in India. The best quality Basmati rice comes from old Karnal district known as the rice bowl of India. Basmati in Haryana is chiefly grown in Karnal, Panipat, Kaithal, Kurukshetra, Jind and Ambala district. It is also grown in Punjab, Dehradun region in Utterakhand, Western U.P. and Jammu region of Jammu & Kashmir. The area under Basmati rice is dwindling every year due to unpredictable market demand for Basmati and fetching uneven return to farmers. As a result the uneven trend affects various companies/govt. institutions linked with Basmati cultivation. So this survey was carried out in Basmati growing districts of Haryana. The study of various Agro-companies/govt. institutions would provide a roadmap for TRL, a major exporter of HBC-19 and PB No.-1 varieties of Basmati rice to plan accordingly so as to achieve its goal more effectively and efficiently. Companies like Godrej and DCM Shriram are trying to meet all the requirements of farmers through the establishment of agri-retail centres/outlets at various locations across the country. To understand their concepts, objectives, constraints and future plans, a survey was carried out to shower light on the desired heads.

The Specific Objectives of Study Are: -

To find out the attitude of various agri. Companies towards Basmati rice cultivation. To determine the role of these agri. companies /govt. institutions in Basmati cultivation. To find out the future plans of to be followed by these companies/ institutions for Basmati cultivation. To get the suggestions of the companies for improving Basmati cultivation. Limitations of the Project: -

Lack of cooperation from companies, who perceived the questionnaire as interference in their time and workspace. Some of the companies were unwilling to participate whole heartedly in survey. Few companies give very less time for answering the questions. The findings entirely depend on the willingness of the respondent/ companies. A small sample size was chosen for the purpose of survey, Hence errors may be there in the results derived.

SECTION: 3 Methodology: This section gives the methodological details regarding the selection of area, collection of data and its analysis to attain the objectives of study.

SELECTION OF AREA:
Twenty one companies falling under six different agro-based categories from five districts of Haryana were chosen purposively for the study as these districts cover maximum area under Basmati crop. The districts of Haryana where the survey was conducted were Kurukshetra, Karnal, Ambala, Sonepat, Panipat. The companies surveyed in each of the district are given in table. Analysis was undertaken at company/institution level and attempt was made to disaggregate results to selected districts.

SAMPLING DESIGN:
A sampling plan is a definite plan for obtaining a sample from the sampling frame. Total sampling frame consisted of five districts of Haryana and one separate Chandigarh. The companies were randomly selected from the five districts of Haryana. It was assumed that they were representative of population.

COLLECTION OF DATA:
As per the objectives of the study, primary and secondary data was collected to make the research successful. Primary Data: The questionnaire schedule for different agro-based groups attached to appendix has been used for the collection of primary data. Primary data was collected through survey method involving interview of company personnel. Secondary Data The secondary data was collected from Magazines, Newspapers and Different websites.

SAMPLE SIZE:
Considering the constraints of time, distance and resources, the following district wise sample size distribution has been chosen for the purpose of study.
S.NO. 1. GROUP SEED DISTRICT Kurukshetra Kurukshetra Kurukshetra Kurukshetra Kurukshetra Karnal Kurukshetra 3. FERTILIZER Karnal Chandigarh Panipat 4. PESTICIDE Kurukshetra Karnal Sonepat Sonepat 5. PROCUREMENT Sonepat Karnal Kurukshetra Sonepat Karnal Ambala Ambala NAME OF COMPANY/ INSTITUTION Kurukshetra Seeds Prabhat Seeds Haryana Seeds Development Corporation State Bank Of India Punjab National Bank Dena bank Kurukshetra Cooperative Bank Chambal Fertilizers Chemicals Pvt. Ltd. Tata Chemicals Pvt. Ltd. National Fertilizers Ltd. Haryana Agro Fertilizers and Chemicals Margo Bio-Controls Pvt. Ltd. Crystal Phosphates Ltd. Jai Shri Rasayan Udyog Ltd. LT Overseas LTD. Hafed Food Corporation of India Sunstar Overseas Pvt. Ltd. Beri Udyog Pvt. Ltd. Indosaw Industrial Products Pvt. Ltd. Osaw Agro Industries Pvt. Ltd.

2.

FINANCIAL INSTITUTION

Central and

6.

MACHINERY

DATA ANALYSIS:
For classifying the responses tables and charts have been used .The data is analyzed through simply logic from the information received.

SECTION: 4 RESULTS AND DISCUSSION: The survey was carried out keeping in view of six different groups of agri. business companies we visited for Basmati cultivation. In this section we are trying to find out the view and perception of these companies/govt. institutions towards Basmati rice through the information furnished by them. For the sake of convenience we had divided the results into six groups. Each group is representing one category of Agri-Business Company. The six groups were:-

Group 1: Seed Company Group 2: Financial institution Group 3: Fertilizer Company Group 4: Pesticide Company Group 5: Procurement Company Group 6: Farm Machinery Company

GROUP: 1

SEED COMPANY: -

Three companies were visited. The information obtained from them about Basmati rice and non-Basmati rice is discussed below: KURUKSHETRA SEEDS: Kurukshetra
BASMATI VARIETY PRODUCT RATE ION 2007- (RS/QUINT 08 AL) (QUINTAL ) 3000 5500 200 1000 150 3200 6000 5500 5000 5000 NON BASMATI VARIETY PUSA 44 PR-116 PR-118 PR-114 PR-113 PR-111 HKR - 47 HK - 44 SB - 300

District:
PRODUCT ION 200708 (QUINTAL ) 4500 200 150 1000 300 400 1200 2000 1200 RATE (RS/QUI NTAL) AVERAG E 1000

Pusa Basmati No.1 HBC-19 CSR-30 PUSA 2511 PUSA 1121

HYBRID = RH 10 (200 Q)

Annual Production (2007): 22000 QUINTAL (7000 -8000 Quintals of Basmati Rice) District:
RATE (RS/QUINTAL ) 4500 4500 4000 NON BASMATI VARIETY PR-114 PR -116 PR-118 PRODUCT ION 200708 (TONNES) 200 200 200

PRABHAT SEEDS: Kurukshetra

BASMATI VARIETY CSR-30 PUSA 1121 PB No. 1 PRODUCTIO N 2007-08 (TONNES) 50 280 100

Annual Production (2007) : 1000 Tonnes of Basmati Rice : 3.80 Crores

Turn Over

HARYANA SEEDS DEVELOPMENT CORPORATION: District: Kurukshetra

BASMATI VARIETY HBC 19 CSR 30 PUSA 1121 RATE (RS/ KG) 48 48 45 NON BASMATI VARIETY PR -111 HKR 47 PR- 113 HKR -126 PUSA -49 RATE (RS / KG) 18 18 18 18 18

FINDINGS: 1.

The demand for Basmati seeds was totally dependent on market conditions. For the past 3-4 years the farmers were getting lower prices for Basmati rice and so the farmers had declined from cultivating Basmati, hence the demand for Basmati seeds had fallen drastically. But this year for the Basmati crop the farmers had got very good prices (upto Rs 4000/quintal).As a result more paddy growers in Haryana were coming for Basmati seeds to the companies. The ratio of Basmati growers to Non-Basmati growers had jumped to 40:60 from 20:80 last year.(data source: www.agriwatch.com) The farmers complained to the companies of getting impure seeds. The impurity in seeds was due to the following reasons:
a. b.

2.

3.

Poor roguing on farmers field.

During grading, the seeds of Basmati got mixed with other seeds by the labour in the company.
c. d.

Mixing up of Basmati seeds by the labour on farmers field. Quality difference arising due to different soil and weather conditions.

4.

The companies conduct seminars and participate in fairs before the start of rice season providing information and technical know how about Basmati cultivation in Basmati growing belt of Haryana.

GROUP: 2

FNANCIAL INSTITUTION: -

Four financial institutions were visited for the survey. The information furnished by them is disclosed here under.

STATE BANK OF INDIA (Branch- Thanesar) Kurukshetra TYPE OF LOAN SHORT TERM MID TERM LONG TERM

District:

PARTICULARS CROPS LAND DEVELOPMENT IMPLEMENTS AND WAREHOUSING

TERMS AND CONDITIONS OF LOAN 1. The land should be recorded as owned by the farmer in revenue office. 2. A photocopy of rashion card.
3.

Voter identity card

4. The farmer should have no dues.

5. 6.

Bank provided loan for a period of 1year(2 seasons) A maximum of 3 lac rupees loan was given.

Number of farmers taking loan in 2007 = 1000(out of which 150-160 farmers were new) Amount of loan given in 2007 = 5-6 crores

PUNJAB NATIONAL BANK (Branch- Thanesar) Kurukshetra

District:

TYPE OF LOAN SHORT TERM MID TERM

PARTICULARS CROP (through Kisan Credit Card) TRACTORS, MACHINERY

TERMS AND CONDITIONS OF LOAN 1. The land should be owned by the farmer.
2. 3.

Loan was given for a period of 1 year.

For paddy and wheat Rs 19000 and Rs 17000 per acre was given respectively. On 1 acre, amount of loan given = 19000+17000+25% of the total (25%= given for kind like health expenses, schooling of children, etc.)
4.

5. Maximum amount of loan given = Rs 3 lac.

Numbers of farmers taking loan in 2007 = 240 Amount of loan given in 2007 = 5 crore

DENA BANK ( Branch Samana Bahu) TYPE OF LOAN SHORT TERM MID TERM LONG TERM PARTICULARS CROP( Kisan Credit Card) Implements, power tillers Land development

District : Karnal

TERMS AND CONDITIONS OF LOAN 1. The land should be owned by the farmer.
2. 3.

The loan was given only through Kisan Credit Card. For paddy and wheat Rs 12000 and Rs 10000 per acre were given.

4. On 1 acre , amount of loan given = 12000+10000+20% as kind

5.

The loan was given for a period of one year.

6. Maximum amount of loan given= 3 lac with 7% interest and over that 11.5% is charged. Number of farmers taking loan in 2007 = 100 Amount of loan given in 2007 = 2.5 crore

KURUKSHETRA CENTRAL COOPERATIVE BANK Kurukshetra

TYPE OF LOAN SHORT TERM MID TERM LONG TERM PARTICULARS CROPS IMPLEMENTS, TRACTORS, LAND DEVELOPMENT

District:

TERMS AND CONDITIONS OF LOAN The farmer had to be a member of the village level primary cooperative society.
1. 2.

For paddy and wheat Rs 15000 per acre was given respectively.

3. Maximum amount of loan given = Rs 1 lac.

4.

Loan amount was divided into 2 parts:

5. Cash = 75%
6. 7.

Kind = 25% (seeds, fertilizers, pesticides) Loan was given for a period of 1 year.

8. Interest rate = 7% within due date and 9% after due date.

Number of farmers taking loan in 2007-08 = 55,186 Amount of loan given in 2007-08 =207 crore 35 lacs 1 thousand

Number of farmers taking loan for paddy in 2007-08 =21,397 Amount of loan given for paddy in 2007-08 = 117 crore 98 lacs 27 thousand

FINDINGS:
Loan is given for paddy as a whole which includes both Basmati and Non Basmati varieties.
1.

The banks and the cooperatives encouraged farmers to grow Basmati as the cost of production of Basmati was slightly more but the returns were far much better than Non-Basmati varieties.
2. 3. 4.

Farmers mainly came for short term loans.

Cost of production of each crop per unit area was determined by the Deputy Director of Agriculture and NABARD for every year. The commercial banks were charging compound interest either yearly or half yearly. Whereas the Cooperative banks charged simple interest.
5.

The Cooperatives gave loan without security upto a certain range,whereas the commercial banks were mortgaging farmers entire land or home for the loan to be given.
6. 7.

There was a severe problem of recovery of loans by the banks.

GROUP: 3

ERTILIZER COMPANY: -

Three important fertilizer companies were surveyed for this project. The information provided by these companies can be summarized as follows. CHAMBAL FERTILIZERS AND CHEMICALS PVT. LTD.: District:
Karnal

Fertilizers produced and provided = All the fertilizers of Chambal were provided under the brand name UTTAM. The fertilizers provided by Chambal were:a. 1. 2.

Urea

5. Mono Potassium Phosphate 6. Mono Ammonium 7. Zinc 8. Potassium Nitrate

DAP Phosphate
3. 4. b. c. d.

Murate of Potash Single Super Phosphate

Bio fertilizers produced = Brakshmitra (for all crops) Turnover in 2007 = 3500 4000 crore Production in 2007 = 20 million tons (5th rank in the world)
District:

TATA CHEMICALS PVT. LTD.:

Chandigargh

a. 1. 2.

Fertilizers produced and marketed Urea DAP 4.Potassium Nitrate 5. NPK(19:19:19) 6. Zinc Sulphate (21% and

3. SSP 33%)
b.

Fertilizers recommended for rice = Urea, DAP, SSP, Bentonite Sulphur, Granubor

Tata Chemicals was doing contract farming for Basmati rice for its two exporters viz. Veetee Fine Fruits. And Sunstar Overseas Ltd.
c.

All the inputs were provided by Tata Chemicals to the contracted farmers. Continuous assistance was provided to them by company scientists.
d.

Company encouraged farmer for Basmati cultivation as it required less water than non Basmati varieties.
e. f.Turnover

in 2007 = 2,000 crore (200 crore approx. in Haryana).

District :

NATIONAL FERTILIZERS LTD.:

Panipat

a.

Fertilizers produced Bio fertilizer Rhizobium Phosphate Solublizing Bacteria Azetobacter

Chemical fertilizer Urea

b. NFL is the second largest manufacturer of nitrogenous fertilizer in the country. No as such encouragement was given by NFL for Basmati cultivation to farmers.
c. d.

Turnover in 2007 = 4000 crore Production in 2007 Bio fertilizers = 200 metric tons.

e.

Urea = 32 lakh metric tons

FINDINGS

1.

Basmati rice required less water in comparison to non Basmati varieties. So it was highly suitable for Punjab and Haryana belt as the water level was decreasing rapidly. All the fertilizer companies do feel that government should procure Basmati rice at a support price so as to secure the interest of Basmati growers. Use of bio fertilizers along with chemical fertilizers would help to increase the yield of Basmati rice by 10 -15%.

2.

3.

GROUP: 4

PESTICIDE COMPANY: -

Four companies were visited for this project .The information furnished by them is outlined here under. HARYANA AGRO FERTILIZERS AND CHEMICALS: (Shahabad) District: Kurukshetra
a.

Pesticides produced by HAF&C = Malathion 25%WP, Malathion 50% EC, Malathion 5% DP, Anilophos 30% EC, Butachlor 50% EC, Endoslfan 35% EC, Chlorpyriphos 20% EC, Isoproturan 75% WP, Lindane 20% EC, Pesticides recommended for rice = Butachlor 50% EC (weedicide), Endosulfan 35% EC (insecticide) HAF&C Farmer Service Centre = 19 in Haryana. Here the farmer could get seeds, fertilizers and pesticides. Turnover in 2007 = 3-4 crore.

b.

c.

d.

e. Price may be slightly higher than private players but quality is assured.

MARGO BIO-CONTROL PVT.LTD: a. It is a bio-pesticide company. b. Pesticides produced Neem based insecticides Virus
1.

District: Karnal

6. Nuclear Poly Hydro 7. 8. Verticillium

Trichoderma (Ecoderma) Pseudomonas(Ecomonas)

2. 3.

Bacillus thuringiensis (Delfin)

4.

Humus based bio fertilizer (Ecohume)

9. Pheromones

5. Neem based fungicides(Tricure) c. Pesticides recommended for rice:

d.

Tricure, (controls seed blight, false smut) Ecomonas (Bacterial leaf blight) Echohume (bio fertilizer)

Turn over in 2007 = 15 crore in India

MARGO encouraged farmers for Basmati cultivation as there was a heavy demand for organic rice in European countries. By using bio-pesticide the quality of Basmati would be increased. CRYSTAL PHOSPHATES LTD. Sonepat a. Pesticides produced
Insecticide Mancozeb +carbendaz im Monocroto phos 36% SL Endosulfan 35 EC Mancozeb
b.

District:

Brand Sure Sriphos40 Endosre e Cryston M-45

Herbicide Atrazine 50% WP Butachlor 50% EC 2,4 D sodium salt Sulfosulfuro n 76%

Brand Srizon Bumpe r Cutout Nishan

Fungicide Sulphur 80% WDG Carbendazi m 50%

Brand Sulphi n Sriston -50

Copper Blyton Oxychloride 50%

Pesticides recommended for rice = Mancozeb, Monocrotophos, Butachlor, Sulphur 80% No as such encouragement given for Basmati cultivation.

c.

JAY SHRI RASAYAN UDYOG LTD. Sonepat a. Pesticide produced

INSECTICIDE Acetamiprid 20% SP Alphamethri n 10% EC Cyper 4% EC +Profenos 40% EC
b.

District:

BRAND Prize

HERBICIDE Butachlor 50% EC

BRAND FUNGICIDE Super mix Carbenda12 % WP+ Manco 63 % WP Carbmendazi m 50% WP Tricyclozole 75% WP

BRAN D Acer

Collecto r Corsa -808

Pendimethali Eraser n 30 % EC Pretilachlor Krift 50 % EC

Ruston e Veer

Pesticide recommended for rice = Butachlor, Pendimethalin, Pretilachlor, Carbendazim, Tricyclozole, Acetamoprid, Alphamethrin. Turnover in 2007 = 40 50 crore.

c.

FINDINGS:
1.

The pesticides used in other rice varieties were being used in Basmati cultivation.No special pesticide for Basmati rice.

2.

The companies feel as the area under Basmati increases, the demand for pesticides would increase since it is more prone to diseases.

3. 4. 5.

The use of bio-pesticide had resulted in improving quality of Basmati rice. The demand for pesticides depended entirely on climate. The companies dont have any special plans for Basmati rice.

6.

The area under Basmati had remained stagnant over the years due to uneven returns and so the consumption of pesticide had been more or less the same and entrance of new players was affecting the growth of other companies.

GROUP: 5

PROCUREMENT COMPANY: -

Four companies of procurement were visited. The information provided by these companies regarding Basmati is given below.

LT OVERSEAS LTD. (DAWAT BASMATI RICE):

Sonepat
a.

District:

Crops Procured = Paddy

b. Rice varieties procured

BASMATI Pusa Basmati No. 1 CSR -30 HBC 19 Pusa 1121
c.

NON BASMATI PR - 44 PR 111 PR 114 PR 116 Sharbati

Company was doing contract farming on Basmati for Pepsico Food Products and Beverages Ltd. Turnover in 2007 = 350 400 crore ( 80% of the business is done by Basmati rice)

d.

HAFED (Taraoli):
Karnal
a.

District:

Crops procured = Paddy, Wheat, Pulses, Oilseeds, Sorghum.

b. Rice varieties procured

BASMATI CSR- 30 NON BASMATI PUSA 1121 PARMAL PADDY SHARBATI

c. Quantity of rice procured

RICE VARIETY CSR- 30 PUSA BASMATI SHARBATI QUANTITY (QUINTAL) 35,000 10,000 25,000

PUSA 1121 PARMAL

d.

11,000 15,000

Farmers were contracted for Basmati cultivation, providing them with inputs like seeds, fertilizers, pesticides, etc.

e. 85% of CSR-30 was exported mainly to Australia.

f.

Turnover in 2007 = 50 crore

FOOD CORPORATION OF INDIA (Shahbad)

Kurukshetra
a.

District :

Crops Procured = Wheat and Paddy.

b. Rice varieties procured

TYPE OF RICE COMMON FINE SUPER FINE
c.

RATE OF PROCUREMENT(Rs/quintal ) 700 750 750

FCI did not procure BASMATI RICE because Basmati was premium quality rice which was basically meant for the higher class. FCIs basics objective was to serve the lower and under privileged section of the society and to meet the food scarcity problem during natural calamities. FCI played no role in encouraging the farmers for Basmati cultivation. No sort of contract farming was done by FCI. Quantity of rice procured in 2007 = 1,15,000 metric tons The quantity of rice procured had been stagnant for the past 5 years.
Distict :

d. e. f.

SUNSTAR OVERSEAS LTD.

Sonepat
a.

Crops procured = Paddy (Basmati only)

b.

Basmati varieties procured

1.

PUSA BASMATI NO. 1

2. PUSA 1121 c. Exporting regions

1. 2.

North and South America Eastern and Western Europe

4.Middle east 5. Eastern Asia

3. South east Asia

d.

About 80 -90 % of the business was done through exports.

e. Turn over In 2007 = Rs 320 crore

FINDINGS:
1. 2.

All the Basmati procuring companies were following contract farming. The companies provided these contracted farmers with inputs like seeds, fertilizers, pesticides, implements at a subsidized rate. The contracted farmers were benefited as the company helped them in getting technical knowledge about seeds, method of cultivation. The scientists of the company visited the farmers field time to time guiding the farmers so as to ensure a quality produces at the end. The companies purchased the Basmati rice at a price which was above the mandi prize by a certain percentage. For eg. HAFED procured CSR-30 at a price which was Rs 100/quintal more than the mandi price. The farmer had to sell his Basmati rice in mandi if the produce was up to the mark of companys expectation. There was a heavy demand for good quality and organic Basmati in European countries. So the companies were now emphasizing on producing Basmati through organic farming.

3.

4.

5.

6.

GROUP: 6
generalized as under.

MACHINERY COMPANY: -

In all three companies were visited. The information provided by them can be

BERI UDYOG PVT.LTD.

a. Implements Produced 1. ws 2. vators 3. Plough 4. Leveller
b.

District: Karnal

Harro 5. Rotary Tiller Culti 6. Subsoiler MB 7. Bund Maker Land Implements specially for paddy = Paddy harrow , Rotary Tiller Production of Implements in 2007 = 10,000 12,000 units Turnover in 2007 = 26.5 crore (16.5 crore domestic and 10 crore in exports) Exporting countries = African countires, America.

c. d.

e.

INDOSAW INDUSTRIAL PRODUCTS PVT. LTD.

District : Ambala
a.

Implements produced: 2. Seed/grain testing equipments,

1. Moisture meters,

3. Seed Graders, 5. Seed/grain divider, 7. Rice Miller, 9. Sieve Shaker,

b.

4. Seed Germinator, 6. Hot air seed dryer, 8. Rice Polisher, 10. Rice Sheller and Rice Sizing Device

Implements produced for Paddy: Rice polisher, Rice miller, Rice Sheller and Rice sizing device. Turnover in 2007 = 150 crore in agricultural implements Exporting zones = Europe, Middle East, Africa and Asia.

c. d.

OSAW AGRO INDUSTRIES PVT. LTD. District: Ambala

a. Implements Produced
1. 2. 3. 4.

Seed pre cleaner/grain cleaner Seed dryers and grader Specific gravity separators Belt conveyor
b.

5. Pouch packing machines 6. Seed treaters 7 Dehumidifiers 8. Bucket elevators

Implements especially for paddy: Seed dresser, Seed cleaner, Seed grader are required for all crops including paddy. Implements were produced specifically for seed processing industries and not meant for farmers individually. Exporting regions = Europe, Asia, Africa. Turnover in 2007 = 120 crores

c.

d. e.

FINDINGS:
The companies who were selling field implements to farmers had no special implements for paddy.
1.

Whether the farmers grew Basmati or non Basmati, he had to use implements. So promotion of Basmati cultivation would have no direct benefit to machinery manufacturers
2.

Farmers lacked knowledge in the use of new implements, so constant assistance was required to make them skilled.
3.

As the area under paddy would increase there would be increasing demand for paddy implements.
4.

SECTION: 5 CONCLUSION & RECOMMENDATION: CONCLUSION:

BASMATI RICE, the queen of fragrance of India is a major wealth earner for the Basmati growers here. India alone exports more than 50% of Basmati rice across the globe to major Basmati importing countries because the fine fragrance

and top quality of Indian Basmati is much superior to the quality offered by other Basmati exporting countries. The rich aroma of Indian Basmati has made itself the first choice of European and gulf countries along with America as well. There has been a heavy increase in the Basmati exports of India by 1,208.75% from 2005-06 to 2006-07. The increasing return in Basmati rice for the last two years has encouraged the non Basmati growers to go for Basmati cultivation. The survey conducted had helped in revealing some issues of agro-based companies related to Basmati cultivation and in providing some hints to solve out those issues. The market of Basmati was very fluctuating .It had shown a downward trend over the last 3-4 years period, where the rate of Basmati rice during peak season had fallen from Rs 1800/quintal in 2004-05 to Rs 1200/quintal in 2005-06.But this year the situation is reversed and the farmers had got very good prices (upto Rs4000/quintal).The downward trend had caused the seed industry to produce Basmati in lower amounts. But this year the Basmati seeds were in high demand and the seed companies were finding it difficult to meet the demand. There was no guarantee that the farmers produce would be accepted by the company, if it was not upto the contracting companys quality parameters. Under such a state the farmer had to sell his produce in the mandi and his expectation of getting a good price from the company shatters away. This leads to discourage the farmer from contracting. The procurement companies also had to bear the loss as their invested efforts in providing sound technical knowledge; agri-inputs to the contracted farmer couldnt yield a good crop. The procurement company was devoid of getting proper supply of the produce.

The yield of Basmati was much lower than non- Basmati group and there was a strong demand of organic Basmati in European countries. The study had also revealed that the farmers lacked knowledge regarding selection of right kind of seeds, fertilizers, pesticides and their way of using. The financial institutions were in favour of increasing area under Basmati as the returns were far much higher. The machinery company had to employ special machinery for Basmati rice. Overall it can be said that all these companies and government institution had a major role to play in promoting Basmati cultivation in India. If the issues could be dealt with scrutiny with satisfactory solutions to them then the day is not far when India in the Basmati trade internationally will be referred to as FRAGRANT INDIA.

RECOMMENDATIONS:
1.

Contract Farming: Contract farming had to be encouraged on a large scale for Basmati cultivation. Through seminars and exhibitions in fairs in villages the benefits of contract farming had to be clearly depicted to the farmers. Contract farming for Basmati helped to generate the following benefits to both producers and buyers.
a. b.

Minimization of Risk Quality Harvest Handling

d. Price stability e. Better Post

c. New Technology
2.

Minimum Support Price (MSP) for Basmati: The government should start procuring Basmati by fixing a support price for it. This would help in mitigating the risk of price fluctuation in Basmati rice.

3.

Futures Trading:. Futures trading would help to reduce price variations in times of violent fluctuations in case of Basmati.

4.

Demand for Organic Basmati: The Basmati exporting companies should go for growing Basmati organically because of their heavy demand in European countries.

5.

Use of Bio-fertilizers and Bio-pesticides: Encouragement should be given to use bio-fertilizers and bio-pesticides in Basmati rice cultivation.

6.

Development of High Yielding Varieties of Basmati: The research institutes should take steps in developing more insect-pest and disease resistant

varieties which will automatically help in achieving a high yielding variety of Basmati rice.

7.

Promoting the Use of Certified Seeds of Basmati: A mass extension work has to be carried out by the seed, Procurement Company as well as the government at emphasizing the importance and advantages of using certified seeds than to grains.

8.

Meticulous Monitoring By the Contracting Company: Meticulous monitoring has to be done by the contracting company by providing sound technical know how about Basmati cultivation and ensuring proper use of right kind of agri-inputs at the right time to the contracted farmer so that the rejection percentage is greatly reduced.

9.

Special Machinery for Basmati: The machinery company should try to produce special implements for Basmati rice so that the desired grain size, length and polish to Basmati grain could be given.

10. Release

the farmers from Commission Agents Grip: The procurement

companies should set up advisory centre at village level In Basmati growing zones providing the farmers with standard seeds, fertilizers, pesticides and other inputs apart from technical know how about Basmati cultivation at each stage of crop growth and encourage farmers to sell their produce to them by showing the loss caused by commission agents to them.
11. Involving

the Small Farmers in Contract Farming: The procurement

companies in association with financial institutions should influence the small farmers for Basmati cultivation, with buy back commitment of quality produce.

REFERENCES
www.apeda.com www.agricoop.nic.in www.agriwatch.com www.mcxindia.com www.commodityindia.com www.agristat.com www.agricultureinformation.com www.irri.com www.fao.org www.answer.com www.basmationline.com www.icar.com www.tradeindia.com www.linkedin.com www.google.com

Appendix: -

1- Questionnaire for Farm M/C. Co.

Name of respondent : Address :

Name of interviewer : Date :

1. 2. 3. 4. 5. 6.

What type of machinery your company manufactures? What are the implements manufactured specially for paddy? Annual production/sales of paddy implements in 2007: Do you encourage the farmer for rice cultivation? : YES / NO If YES mention how? : What benefit farmer derives from your company in relation to paddy cultivation? : 7. Does the farmer know about your implements / company? : YES / NO 8. Do the farmer use your co. implements : YES / NO 9. If NO mention: 10.What benefit you expect from basmati cultivation : 11.What suggestion would you make to improve basmati cultivation : 12.Do you have m/c for basmati cultivation : YES / NO 13.If YES mention: 14.Are the farmers benefited by using these m/c : YES / NO 15.Do the farmer face any problem during use of m/c :YES / NO 16.If YES mention : 17.Discuss the past 5 years business scenario in relation to paddy cultivation: 18.Discuss the present scenario: 19.Discuss the upcoming business scenario in relation to paddy cultivation.

2- Questionnaire for Fertilizer Co.

Name of respondent : Address : Name of interview : Date :

1. What are the fertilizers you produce? 2. What are the fertilizers you recommend for rice? 3. Do you produce some bio-fertilizer for basmati cultivation ; YES / NO 4. If YES mention : 5. Does the farmer know about your product / company ?: YES / NO 6. Does the farmer use your co. product : YES / NO 7. If yes then why? 8. If NO why? 9. Do you encourage the farmers for basmati cultivation ?: YES / NO 10.If yes mention how? : 11.What benefit you expect from basmati cultivation? : 12.What suggestion would you make to improve basmati cultivation? : 13.Do you have some special strategies for basmati cultivation? : 14.Is there any problem from farmer side: YES / NO 15.If YES mention : 1. Place Availability : YES / NO 2. Timely availability : YES / NO 3. Quantity availability :YES / NO 4. Pricing : YES / NO 5. Other (SPECIFY) : 16.Annual turn over of fertilizer in 2007 : 17.Discuss the past 5 years business scenario in relation to basmati cultivation : 18.Discuss the upcoming 5 years business scenario in relation to basmati cultivation.

3- Questionnaire for Finance Co.

Name of respondent : Address : Name of interviewer : Date : 1. Does your company provide finance facility in agriculture? : YES/NO 2. What are the areas of agriculture in which your company provides finance facility? : 3. What is the type of loan provided? : a. Short term b. Mid term c. Long term 4. What is the type of loan demanded by the farmers? : a. Short term b. Mid term c. Long term 5. What are the terms and conditions of loan provided? : 6. Is there any problem in financing? : YES/NO 7. If YES, specify 8. How many farmers take loan on an average annually? : 9. How many farmers took loan in 2007? : 10.Do you have a special package for basmati rice? YES /NO: 11.If YES, specify 12.Are the farmers benefitted by credit facility? : 13.Do you encourage the farmers for basmati cultivation ?: YES / NO 14.If YES mention how? : 15.What benefit farmer derives from your institution in terms of paddy financing? : 16.Does the farmer know about your company? : 17.What benefit you expect from paddy/basmati cultivation? : 18.What suggestion would you make to improve basmati cultivation? : 19. Discuss the past 5 years business scenario in terms of paddy financing : 20. Discuss the upcoming(5years) business scenario in terms of paddy financing.

4- Questionnaire for Pesticide Co.

Name of respondent : Address Name of interview Date : : :

1. What are the pesticides you produce? 2. What are the pesticides you recommend for rice/ basmati rice? 3. Do you produce some bio-pesticide for basmati cultivation ; YES / NO 4. If YES mention : 5. Does the farmer know about your product / company ?: YES / NO 6. Does the farmer use your co. product : YES / NO 7. If YES then why? 8. If NO why? 9. Do you encourage the farmers for basmati cultivation ?: YES / NO 10.If yes mention how? : 11.What benefit you expect from basmati cultivation? : 12.What suggestion would you make to improve basmati cultivation? : 13.Do you have some special strategies for basmati cultivation? : 14.Is there any problem from farmer side: YES / NO 15.If YES mention : 16.Annual turn over of pesticide in 2007 : 17.Discuss the past 5 years business scenario in relation to basmati cultivation : 18.Discuss the upcoming 5 years business scenario in relation to basmati cultivation :

5- Questionnaire for Procurement Co.

Name of respondent : Address :

Name of interviewer : Date :

1. What are the crops for which procurement is done? : 2. Do you procure rice? : YES / NO 3. If YES then what are the rice varieties your co. procures? : 4. Which are the basmati varieties you procure? : 5. Do you encourage the farmers for basmati cultivation ?: YES / NO 6. If YES mention how? : 7. What benefit farmer derives from your company in terms of basmati cultivation? : 8. Do the farmers know about your company? : 9. Is the Co. doing contract farming in basmati/rice ?: YES / NO

10. Does co. provide facility to farmers : a. Seeds : YES / NO

b. Technical knowledge : YES / NO c. Other (SPECIFY) :

11.Are the farmers benefited? : YES / NO 12.What are the pricing strategies followed by co.? : 13.What is average annual turnover? : 14.What is the turnover in 2007 in case of basmati rice? : 15.What benefit you expect from basmati cultivation? : 16.: Discuss the past 5 years business scenario in terms of basmati cultivation :

17.Discuss the present business scenario: 18.Discuss the upcoming business scenario in terms of basmati cultivation :

6- Questionnaire for Seed Co.

1. 2. 3. 4. Name of respondent : Address : Name of interviewer : Date :

Which crop seeds you provide? : What are the rice varieties you provide? : Do you provide basmati seeds? : YES / NO If YES mention basmati varieties: a. Traditional b. Evolved 5. what type of basmati seed/variety farmers like more: 6. Annual production/sales of basmati seeds in 2007: 7. If there is any type of farmers complain: 8. Do the Co. sale improved variety/hybrid variety (genetically pure, resistant to pest & disease) of basmati: YES/NO 9. If YES mention the varieties: 10.Do you encourage the farmers for basmati cultivation? : 11.If YES how? 12.What benefit farmer derives from your company in relation to basmati cultivation? : 13.Does the farmer know about your product / company? : 14.Does the farmer use your co. product ?: YES / NO 15.If NO mention: 16.What benefit you expect from basmati cultivation : 17.What suggestion would you make to improve basmati cultivation : 18.Discuss the past 5 years business scenario in relation to basmati cultivation: 19.Discuss the upcoming 5 years business scenario in relation to basmati cultivation: