Agriculture: Industry Report, March 2013

Agriculture
MARCH
2013
For updated information, please visit www.ibef.org
Agriculture
MARCH
2013
Contents
Advantage India Market overview and trends Growth drivers Success stories: Green Revolution, Rallis India Opportunities Useful information
Agriculture
Advantage India
MARCH
2013
2011-12E
Robust demand
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 11th Five Year Plan
Food grain production: 257.4 million tonnes
Advantage India
Policy support
Competitive advantages
High proportion of arable land (55 per cent or 182.3 million hectares) Leading producer of jute, pulses; second-largest producer of wheat, paddy, fruits and vegetables
Government is increasing Minimum Support Prices (MSPs) to ensure higher crop production Launched National Food Security Mission (NFSM) to increase production of rice, wheat and pulses
1960-61
Food grain production: 69.3 million tonnes
Source: Ministry of Agriculture, World Bank, FAOSTAT, Aranca Research

Note: E - Estimate
ADVANTAGE INDIA
Agriculture
MARCH
2013
Contents
Agriculture
MARCH
2013
Evolution of agriculture in India

2000 onwards
1980-2000
1960-80
Increase in population and strong income growth amplified the demand for food Expanding cereal production grains Economic reforms MNC players brought in better introduced; greater encouragement to exports technology Pioneering work of agricultural scientists and efforts of farmers led to Green Revolution Surplus of production of agricultural commodities over domestic demand India thus emerged as a net exporter of agricultural products Rise in institutional credit for agriculture Government launched NFSM to increase production of rice, wheat and pulses Commodity exchanges helped in fair pricing of commodities
1950s
Stagnation in agriculture
Low growth in crop and grain production (0.4 and 0.1 per cent p.a.)
High Yield Variety (HYV) of seeds, increased use of fertilizers and irrigation resulted in a significant spike in production
Food grain production of Attained food security and 59.2 mt in 195253, with reduced import of food grains a yield of 579.8 kg/ha
Source: RBI, Ministry of Agriculture, Aranca Research

Notes: NFSM - National Food Security Mission, MNC - Multi National Company, mt - metric tonne, p.a. - per annum
MARKET OVERVIEW AND TRENDS
Agriculture
MARCH
2013
Growth in agriculture (1/2)
GDP of agriculture and allied sectors in India reached USD 151.8 billion in FY12 According to the Central Statistical Organisation (CSO), the agriculture sector is estimated to have grown by 2.5 per cent in FY12
GDP by value added-size of agriculture and allied activities (USD billion)

151.8 147.7
Agriculture is the primary source of livelihood for about 58 per cent of Indias population
129.0 Note: GDP - Gross Domestic Product
138.0 136.5 136.6
FY07
FY08
FY09
FY10
FY11
FY12
Source: Ministry of Agriculture, Aranca Research
Agriculture
MARCH
2013
Growth in agriculture (2/2)
At USD29.6 billion, agriculture accounted for 7.1 per cent of total Gross Capital Formation in FY11 Under the FY13 Union Budget, planned outlay for various schemes under the Dept of Agriculture and Cooperation (DAC) has been fixed at USD 4.2 billion Allocation to the Rashtriya Krishi Vikas Yojana (RKVY) in the FY13 budget has been increased to USD 1.9 billion, a rise of about 19 per cent from the previous financial year
Gross Capital Formation in agriculture and allied activities (USD billion)

29.6 26.5 27.3
19.2
22.0
Note: RKVY is a central government scheme providing funds to state governments to spend on agriculture
FY07
FY08
FY09
FY10
FY11
Source: Ministry of Agriculture,

Aranca Research
Agriculture
MARCH
2013
Major seasons: Kharif and Rabi (1/2)
There are two major agricultural seasons in India - Kharif and Rabi Kharif season lasts from April to September (summer); rice (paddy) is the seasons main crop Rabi season lasts from October to March (winter); wheat is the seasons main crop
Production of food grains (million tonnes) in Kharif and Rabi seasons
109.8
116.3 114.2
123.6
117.2
121.0
118.1
104.0
121.1
129.9
FY08
FY09
FY10 Kharif Rabi
FY11
FY12E

Note: E - Second advanced estimates for FY12
Agriculture
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2013
Major seasons: Kharif and Rabi (2/2)
Area sown in FY12* (lakh hectares) Rabi

13 39 37 Pulses 83 289 Oil seeds Jowar Maize 140 115 169 122 405 Wheat 91 Oilseeds 74 Paddy
Kharif
Pulses
Cotton Bajra Maize
Rice
Source: Ministry of Agriculture, Aranca Research Note: * - Figures for 2012 are as per second advanced estimates
Agriculture
MARCH
2013
Exports of Indian agricultural products (1/2)
India is among the 15 leading exporters of agricultural products in the world; the country accounted for 1.7 per cent of global agricultural trade in 2010 Total agricultural exports from India expanded at a CAGR of 24.1 per cent (to USD37.4 billion) over FY07-12(P)
Agricultural exports from India (USD billion)

37.4
24.2 18.4 Note: P - Provisional estimate (for FY12); CAGR - Compound annual growth rate 12.7 17.5 17.7
FY07
FY08
FY09
FY10
FY11
FY12P
Source: Ministry of Agriculture, World Trade

Organization, Aranca Research
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Agriculture
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2013
Exports of Indian agricultural products (2/2)
India exported rice worth USD5.0 billion in FY12(P) accounting for nearly 13.3 per cent of total agricultural exports Cotton and meat were the next largest export items in terms of value; they accounted for 12.0 per cent and 7.7 per cent respectively of total agricultural exports in FY12(P) As part of a conscious strategy, the government monitors the flow of exports of agricultural products depending on domestic demand and availability
Key agricultural and allied sector exports from India in FY12 (USD billion)
5.0 4.5 2.9 2.7
2.5
1.9 1.2 0.9 0.9
0.7
Rice
Fruits & Vegetables
Meat and preparations
Oil meals
Tea
Cashew
Cotton
Sugar
Note: P - Provisional Estimate
Other cereals
Spices
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Key agricultural states and their contributions

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 14.34 million tonnes Assam is Indias largest producer of tea
Gujarat - largest producer of cotton 7.99 million bales
Karnataka - largest producer of maize 3.01 million tonnes
West Bengal - largest producer of rice 14.34 million tonnes
Madhya Pradesh - largest producer of pulses 4.30 million tonnes
Source: Department of Agriculture & Cooperation

Note: All figures as of 2009-10
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Agriculture
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2013
Contents
13
Agriculture
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2013
Growth drivers of Indian agriculture
Population and income growth
Demand-side drivers
Growth drivers
Hybrid and genetically modified seeds
Supply-side drivers
Policy support
Institutional credit
Increasing MSPs
Favourable policies
Mechanisation Irrigational facilities
Notes: MSP - Minimum Support Price
GROWTH DRIVERS
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Agriculture
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2013
A large population ensures high demand for agricultural products
India, the second-most populated country in the world, has to meet food consumption needs of around 1,210 million people This is a key demand driver of agricultural growth in the country
Population of India (million)

1,400 1,210 1,200 1,000 800 600 400 200 0 FY71 FY81 FY91 FY01 FY11 548 846 1,029
683
Source: Census of India 2011,

Aranca Research
GROWTH DRIVERS
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Agriculture
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2013
Income growth also driving agriculture demand
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 Over FY07-12, Indias per capita income increased at a CAGR of 14.3 per cent (to USD1,270)
Per capita income at factor cost (USD)
1,270 1,111 961 849 746
Indian agriculture has also benefitted from rising external demand and the sectors wider participation in the global economy
650
FY07
FY08
FY09
FY10
FY11
FY12
Source: Central Statistical Organisation,

Aranca Research
GROWTH DRIVERS
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Agriculture
MARCH
2013
Growing area under irrigation (1/2)
Indias 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 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)
Area under irrigation (million hectares)

86.4
76.6 63.2 49.8 38.2 31.1 38.7 48.0 55.1 63.3
FY71
FY81
FY91
FY01
FY10P
Gross irrigated area
Net irrigated area

Aranca Research Note: P is Provisional Estimate
GROWTH DRIVERS
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Agriculture
MARCH
2013
Growing area under irrigation (2/2)
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 With growing investments in irrigation, the dependence on monsoons has declined considerably over the years
Gross irrigated area under food grains (000 hectares)

58,641 53,609 44,866 37,851
30,117
FY71
FY81
FY91
FY01
FY10P

Aranca Research Note: P is Provisional
GROWTH DRIVERS
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Agriculture
MARCH
2013
Increasing mechanisation of farming (1/2)
Mechanisation helps in raising farm income by increasing productivity and limiting post-harvest losses Growing sales of tractors and tillers in India reflect the increasing level of mechanisation in farming; over FY07-12 tractor sales is expected to rise at a CAGR of 11.4 per cent India is the largest manufacturer of tractors in the world, accounting for about onethird of global production*
352,835
Number of tractors sold

605,092 545,109 393,836 346,501 342,836
Source: State of Indian Agriculture 2011-12 by the Dept of Agriculture and Cooperation (DAC)
FY07
FY08
FY09
FY10
FY11
FY12E
Source: Department of Agriculture and Cooperation, ICRA

Aranca Research Note: E - Estimates
GROWTH DRIVERS
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Agriculture
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2013
Increasing mechanisation of farming (2/2)
Sale of tillers increased at a CAGR of 22 per cent over FY07-11 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
Number of tillers sold

55,000
38,794 35,294 26,135 24,791
39,900
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
FY07
FY08
FY09
FY10
FY11
Notes: DAC - Dept. of Agriculture and Cooperation
Apr - Dec 2011
Source: Department of Agriculture and Cooperation,

Aranca Research
GROWTH DRIVERS
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Agriculture
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2013
Improved yield and resistance from hybrid seeds (1/2)
The size of Indias seed industry was about USD1.6 billion (estimate) in FY10
200
Production of seeds (000 tonnes)

3,500 3,000 150 100 50 0 FY07 FY08 FY09 FY10 FY11P Breeder seed production ('000 tonnes) Foundation seed production ('000 tonnes) Certified seed production('000 tonnes) ( RHS) 2,500 2,000 1,500 1,000 500 0
There has been strong growth in the use of hybrid seeds due to their high yield and resistance Usage of hybrid seeds has been more prevalent in cash crops than food crops

P - Provisional Estimate
GROWTH DRIVERS
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Agriculture
MARCH
2013
Improved yield and resistance from hybrid seeds (2/2)
Usage of hybrid seeds has boosted the yield of food grains to 1,993 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
1,023
Food grain yields (kg/hectare)
1,921 1,626 1,380
1,993
FY81
FY91
FY01
FY11
FY12
Source: Ministry of Agriculture, RBI, Aranca Research Note: E - Fourth advance estimates, E* - First advance estimates
GROWTH DRIVERS
22
Agriculture
MARCH
2013
Institutional credit to agriculture on a rise (1/2)
Institutional credit to the agriculture sector increased at a CAGR of 18.1 per cent during FY07-11 Farmers are allowed to avail crop loans at an interest of 7 per cent
Institutional credit to agriculture (USD billion)

69.3 59.5 47.7
In FY12, the government increased the interest subvention for timely repayment of crop loans to 3 per cent from 2 per cent in FY11
37.7 34.7 14.6 8.9 4.3 FY07 10.1 5.3 FY08 9.6 5.6 13.2 7.3 9.2 10.4 5.7 1H FY12 30.4
FY09
FY10
FY11
Commercial Banks
Cooperative Banks
Regional Rural Banks
GROWTH DRIVERS
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Agriculture
MARCH
2013
Institutional credit to agriculture on a rise (2/2)
Domestic banks (both private and public) are stipulated to provide almost one-fifth (18 per cent) of their net bank credit to agriculture 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
39.2%
Share of institutional credit to agriculture
74.5%
52.6%
15.7% 8.0% Co-operative Banks 9.8% Commercial Banks
Regional Rural Banks FY01 FY11
Source: Annual report on Agriculture 2010-11, Aranca Research
GROWTH DRIVERS
24
Agriculture
MARCH
2013
Rising MSPs incentivise farming (1/2)
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 by 15.5 per cent to USD26.0 per quintal in FY13 from USD22.5 per quintal in FY12
15.5 Note: MSP is Minimum Support Price
MSP of rice (USD per quintal)
26.0 18.8 19.8 20.8 22.5
FY08
FY09
FY10
FY11
FY12
FY13
GROWTH DRIVERS
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Agriculture
MARCH
2013
Rising MSPs incentivise farming (2/2)
Government has increased the MSP of pulses significantly in the past three years to encourage production and thereby reduce the supply shortage MSP for arhar increased 150 per cent to USD80.2 per tonnes in FY13 from USD32.3 per quintal in FY08
MSP of arhar (USD per quintal)

80.2
66.7 62.5 47.9 41.7 32.3
FY08
FY09
FY10
FY11
FY12
FY13
GROWTH DRIVERS
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Agriculture
MARCH
2013
Favourable policies are supporting the sector growth (1/2)

National Food Security Mission was launched in FY08 with an outlay of USD1.2 billion
National Food Security Mission (NFSM)
during the 11th Five year plan

It aims 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 was launched in FY08 with an outlay of USD5.3 billion
Rajiv Krishi Vikas Yojana (RKVY)
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
100 per cent Foreign Direct Investment (FDI) is allowed under automatic route in
Foreign Direct Investment (FDI)
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

Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research
GROWTH DRIVERS
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Agriculture
MARCH
2013
Favourable policies are supporting the sector growth (2/2)

Government has launched an initiative to spend USD 65.1 million to promote 60,000
Pulses villages
pulses villages in rain fed areas for increasing crop productivity and strengthening market linkages
Incentivising agricultural research
Realising that scientific and technical breakthroughs are critical to increasing
agricultural productivity, the government in its FY13 budget has allocated USD41.7 million to incentivise research with rewards for institutions as well as research teams
The government plans to set up a Regional Rural Bank Credit Refinance Fund with a
RRB Credit Refinance Fund
capital of USD2.1 billion to enhance the capacity of RRBs to disburse short term crop loans to small and marginal farmers
In its budget for FY13, the government raised the target for agricultural credit by
USD20.8 billion to USD119.8 billion

Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research
Note: RRB - Regional Rural Bank
GROWTH DRIVERS
28
Agriculture
MARCH
2013
Contents
Advantage India Market overview and trends Growth drivers Success stories: Green revolution, Rallis India Opportunities Useful information
29
Agriculture
MARCH
2013
Green Revolution: India becomes selfsufficient in food grains
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
Food grain production (million tonnes)
Double cropping existing farm land 108.4 Continued expansion of farming area 72.4 Green Revolution High yielding seeds 150.4 121.0 129.6
Use of pesticides and fertilisers
FY66
FY71
FY76
FY81
FY86
Source: Handbook of Indian Statistics, Aranca Research

SUCCESS STORIES: GREEN REVOLUTION, RALLIS INDIA
30
Agriculture
MARCH
2013
Rallis India: Leading player in agricultural inputs (1/2)

Salient characteristics

Rallis is a leading player in the agricultural inputs business and 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
31
Agriculture
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2013
Rallis India: Leading player in agricultural inputs (2/2)

Net sales (USD million) Profit before taxes (USD million)
259.4
222.0 183.1 174.3 140.5 153.1 22.3 18.2 30.5 31.8 38.4 31.1
FY08
FY09
FY10
FY11
FY12
H1FY13
FY08
FY09
FY10
FY11
FY12
H1FY13
Source: Company website, Aranca Research
32
Agriculture
MARCH
2013
Contents
33
Agriculture
Opportunities
MARCH
2013
Farm management services
Agricultural inputs
Logistics
New agri business, which
Limited arable land against
The 11th Five Year Plan
provides inputs such as seeds, fertilisers along with providing advice and training farmers on latest agricultural practices
It introduces efficiencies into
growing population makes agricultural inputs crucial

Huge opportunity exists for
estimated a potential storage capacity expansion of 35 million tonnes

Cold storage capacity needs to
agri input segments like seeds and plant growth nutrients

In India, commercial seeds
grow rapidly from the current level of 24 million tonnes

Private warehouse operators
the whole gamut of agri practices

Provides assistance to sell
products at appropriate prices
only account for minor percentage (25 per cent) and huge demand is expected for quality branded seeds
are supported by multiple income streams, subsidy and available of credit
Source: Rallis Annual Report, FCI, Aranca research

Note: FCI - Food corporation of India
OPPORTUNITIES
34
Agriculture
MARCH
2013
Initiatives that will further prop up the sector
FDI in multi-brand retail

The governments plan to allow up
National Food Security Bill
to 51 per cent FDI in multi-brand retail (which is under discussion) will positively influence agriculture and enable its modernisation even further
Foreign investors are likely to bring in
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
efficiencies, especially in food supply chains; they are likely to invest in logistics such as warehouses and cold storages
Direct procurement from farmers will
emanate from implementation of the bill, the government will take measures to raise productivity
The government is likely to invest
likely result in higher prices for the farmer and lower ones for the consumer
more on the storage infrastructure, which will reduce wastage and thereby lead to lower prices
OPPORTUNITIES
35
Agriculture
MARCH
2013
Contents
36
Agriculture
MARCH
2013
Industry Associations (1/2)

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
USEFUL INFORMATION
37
Agriculture
MARCH
2013
Industry Associations (2/2)

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
USEFUL INFORMATION
38
Agriculture
Glossary
MARCH
2013
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

agriculture USD: US Dollar - Conversion rate used: USD 1 = INR 48 Wherever applicable, numbers have been rounded off to the nearest whole number
For updated pleaseto visit www.ibef.org scheme information, providing funds state governments to spend on
RKVY: Rashtriya Krushi Vikas Yojana is a central government
USEFUL INFORMATION
39
Agriculture
Disclaimer
MARCH
2013
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 IBEFs 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.
DISCLAIMER
40

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For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

Food grain production: 257.4 million tonnes

Source: Ministry of Agriculture, World Bank, FAOSTAT, Aranca Research

For updated information, please visit www.ibef.org

For updated information, please visit www.ibef.org

Evolution of agriculture in India

Source: RBI, Ministry of Agriculture, Aranca Research

For updated information, please visit www.ibef.org

Growth in agriculture (1/2)

GDP by value added-size of agriculture and allied activities (USD billion)

138.0 136.5 136.6

Source: Ministry of Agriculture, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Growth in agriculture (2/2)

Gross Capital Formation in agriculture and allied activities (USD billion)

Source: Ministry of Agriculture,

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Major seasons: Kharif and Rabi (1/2)

Production of food grains (million tonnes) in Kharif and Rabi seasons

FY10 Kharif Rabi

Source: Ministry of Agriculture, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Major seasons: Kharif and Rabi (2/2)

Area sown in FY12* (lakh hectares) Rabi

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Exports of Indian agricultural products (1/2)

Agricultural exports from India (USD billion)

Source: Ministry of Agriculture, World Trade

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Exports of Indian agricultural products (2/2)

1.9 1.2 0.9 0.9

Fruits & Vegetables

Meat and preparations

Note: P - Provisional Estimate

Source: Ministry of Agriculture, Aranca Research

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

Key agricultural states and their contributions

Gujarat - largest producer of cotton 7.99 million bales

Karnataka - largest producer of maize 3.01 million tonnes

West Bengal - largest producer of rice 14.34 million tonnes

Madhya Pradesh - largest producer of pulses 4.30 million tonnes

Source: Department of Agriculture & Cooperation

For updated information, please visit www.ibef.org

MARKET OVERVIEW AND TRENDS

For updated information, please visit www.ibef.org

Growth drivers of Indian agriculture

Population and income growth

Hybrid and genetically modified seeds

Mechanisation Irrigational facilities

Notes: MSP - Minimum Support Price

For updated information, please visit www.ibef.org

A large population ensures high demand for agricultural products

Population of India (million)

Source: Census of India 2011,

For updated information, please visit www.ibef.org