A Bird Eye View On

Agriculture Sector Of India

AGRICULTURAL SECTOR IN
INDIA
• Agriculture is one of the strongholds of the Indian economy and it
accounts for 18.5 per cent of the gross domestic product (GDP).
Agriculture draws its significance from the vital supply and demand
links with the manufacturing sector and is a source of livelihood for
the rural population of India.
• More than 58% of country's population depends on agriculture.
• The average growth rate of agriculture and allied sectors during the
last two years i.e., 2006–07 and 2007–08 has been more than 4 per cent
as compared to the average annual growth of 2.5 per cent during the
10th Five-Year Plan.
AGRICULTURAL SECTOR IN
INDIA
• According to a Rabobank report titled "Indian agri-biotech sector:
Emerging scenario, issues and challenges", the agri-biotech sector in
India has been growing at a whopping 30 per cent since the last five
years, and it is likely to sustain the growth in the future as well.

• The food processing sector, which contributes 9 per cent to the GDP, is
presently growing at 13.5 per cent against 6.5 per cent in 2003–04, and
is going to be an important driver of the Indian economy.
Production
• India is the largest producer of coconuts, mangoes, bananas,
milk and dairy products, cashew nuts, pulses, ginger, turmeric
and black pepper. It is also the second largest producer of rice,
wheat, sugar, cotton, fruits and vegetables.
• Agricultural production is likely to increase significantly and
has projected a growth of 3.2 per cent during fiscal year 2009,
for the GDP of agriculture and allied sectors.
• The allied sectors comprising livestock, forestry and logging,
and fishing are likely to see a growth of 4.8 per cent during
fiscal year 2009.
Production
• India's coffee production is likely to increase by 12 per cent next year
to 293,000 metric tonnes in the year beginning October 2008
compared with the 262,000 tonnes forecast for this year.
• The tea production in the country increased from 981 million kg as
compared to 945 million kg in 2007. The total tea export during
January-December 2008 touched 196 million kg compared with 178.75
million kg in the same time of the previous year.
• Soybean production is likely to touch an all-time high of 12 million
tonnes in 2008–09, 20 per cent higher than the previous year.
Production
• Indian total milk production is
highest in the world. India has also
the privilege of having the 1st rank
in total irrigated land in area terms
in the world.
• Among cereals production, India is
placed third, having second largest
production in wheat and rice and
the largest production in pulses.
• Priority must be given to livestock's
& fisheries, horticulture, organic
farming, commercial crops and
agro-processing, as these are the
potential areas of high growth.
Export
• According to the government's agri-trade promotion body, APEDA,
India's exports of agricultural and processed food products posted a
38 per cent increase in the 2007–08 fiscal.
• According to official data, India exported about 17.5 million tonnes of
agricultural and processed foods worth about US$ 6.39 billion in FY
2007–08 against 10.9 million tonnes valued at about US$ 4.37 billion in
the previous year.
• APEDA feels the exports will grow due to higher demand from Asian
and African markets that are aggressively procuring relatively
cheaper products from countries such as India.
• At present, around 70 per cent of the country’s agricultural and
processed food exports are to developing countries in the Middle East,
Asia, Africa and South America.
Export
Export
• India’s overseas shipments of coffee rose by 9.6 per cent to 300,000
bags even as global coffee exports decreased by 1 per cent.
• India's natural rubber exports have increased by 38 per cent in the
April-July 2008–09.
• Spice exports registered a 17 per cent increase in revenue in rupee
value and five per cent in quantity this year compared to last year.
• India exported 1.40 million tonnes of oil meal in the first three months
of the current financial year, up 70 per cent from the corresponding
period last year.
• Cashew exports touched US$ 413.21 million, an increase of 40.2 per
cent during the April-November period of 2008–09.
Horticulture
• India is the second largest producer
of both fruits and vegetables in the
world and the National
Horticulture Mission (NHM) aims
at doubling horticulture production
by 2012. Under the NHM, US$
220.66 million has been earmarked
for horticulture development
during this year.
• The Indian state of Gujarat is
striving to become a horticulture
hub. With a two-fold increase in the
land already allotted to
horticulture, the state government
now plans to bring in another 20
million hectares.
Horticulture
• In the North-East states of
Nagaland, Manipur and
Meghalaya, cultivation of the
jatropha shrub, (a cash crop
yielding the promise of oil
for production of bio-diesel,
grown primarily in
wastelands) is becoming
increasingly popular.
Investments
• India is expected to spend around
US$ 14.05 million for the
development of organic spices by
2012, particularly on turmeric,
chilli, and ginger.
• Andhra Pradesh Jute Development
Centre Ltd (APJDC) will be setting
up a jute park spread over 150-acre
land in Visakhapatnam, with an
investment of US$ 20.49 million..
• The West Bengal Financial
Corporation (WBFC) is setting up
of small and medium enterprises in
sectors such as agro-based
businesses and floriculture.
Investments
• The Horticulture Department of Andhra Pradesh Government has
announced an action plan for 2008–09 with an investment of US$
152.30 million for the development of nurseries in the public and
private sectors and increasing productivity of crops.
• The Andhra Pradesh government has sanctioned US$ 773.68 million)
for the Pranahita-Chevella Lift Irrigation Scheme. to irrigate an area
of 1.22 million acres in the drought prone areas of the Telangana
region.
• Tata Chemicals has firmed up plans to set up a manufacturing plant
for customised fertilisers at Babrala in Uttar Pradesh. The company
will invest close to US$ 10.02 million in this facility having a
production capacity of 20 tonne per hour.
Value Chain of Agricultural
Sector
Seeds:
• The humble seed is now big business and is attracting the attention of
corporate as well as the NGOs with narrow agendas. Private sector
seed producers had a good year. Indian seed companies are looking
for tie-ups with MNCs to fill in gaps in their product offerings.
Fertilizers:
• Fertilizer companies are now vying with each other to rationalize costs
and catch the farmer’s eye and his pocket. Great emphasis is now on
Customer Satisfaction Measurement and distribution cost
rationalization as shown by our experience with studies in this area.
Value Chain of Agricultural
Sector
Credit to farmers:
• Rural credit through issue of Kisan Credit Cards has become popular.
The Scheme launched in 1998-99 now covers nearly 4 crores of our 12
crores farmers.
• Fertilizer giants such as IFFCO are looking at offering a range of
financial Products to their customers. Insurance is already on offer
while a banking foray is Under discussion.
Supply chain organization:
• At long last attention is being paid to developing an efficient supply
chain.
• Mother Dairy Fruit and Vegetable ( a subsidiary of NDDB) now has
strong business processes in place for its Safal chain of fruit and
vegetable auction markets.
• A fair and transparent system now helps the farmer get a reasonable
price for his produce.
PGD in Agribusiness
Management
• PGD in Agribusiness Management course draws on the very bestof
global management techniques, providing a strong platform for
careers in agribusiness management, for both employment and
entrepreneurial opportunities.
The economic reforms have necessitated professionalism in vital
sectors of the Indian economy. Transformation of the agriculture
sector into a competitive sector calls for professional management and
use of modern technologies in areas such as Specialized Production,
Post-Harvest Management, Promotion of value added agro products,
• Agricultural Finance, Agricultural Supply Chain Management, Agro
Exports and Commodity Trading etc., so as to position these
competitively both in the domestic as well as international markets.
Agribusiness Management Education is now a priority in the country.
PGD in Agribusiness
Management
• Agriculture has long been seen as a sector with tremendous potential
in India. The sector contributed 22% to India's GDP in the year 2002-
03 and is expected to grow at nearly 5% each year in real terms over
the next decade. This, coupled with changing global norms such as the
WTO rulings and increased global competitiveness, means
that there is a tremendous need for professional courses in
agribusiness management, making it one of the most challenging and
exciting sectors to be in, both as a professional or as an entrepreneur.
The knowledge acquired through the course and exposure to the
organizational functions through attachment with corporate/non-
corporate organizations brings the desired professional competence in
the students to address the demands of the agribusiness and allied
sectors.
Employment Scenario in
Agricultural sector.
Agro-based companies

In 2008, Indian agro-based companies attracted a host of private

equity players, who saw potential in this space on the back of strong
demand and the sector's insulation from the credit-induced economic
crisis in the West.
 The Mahindra & Mahindra (M&M) group’s agri-business initiative,
Mahindra ShubhLaabh Services (MSSL), has tied-up with the
Netherlands-based HZPC, the world’s largest seed potato supplier.
 Blackstone invested US$ 50 million in Hyderabad-based Nuziveedu
seeds, one of the largest hybrid seeds companies in India.
 Morgan Stanley picked up a minority stake for US$ 36.51 million in
castor oil maker, Biotor Industries, through its Asia fund.
Employment Scenario in
Agricultural sector.
• Importance of Agri-business Management
The on-going structural changes in the economy have resulted in major shifts in
the Indian agricultural scenario. The policies of globalisation have taken Indian
agriculture into the global village, opening up unprecedented opportunities as well
as great challenges. These and other concomitant forces of change are placing
significant demands for managerial skills in the Agri-Business sector.
• What are the career opportunities after the
completion of this course?
• Agribusiness Management is an emerging sector and there is a rising demand for
Agribusiness professionals in various organizations and corporates in sectors like
Agri-inputs, Rural Retailing, KPOs, NGOs, Food processing, International trade,
Rural credit & insurance, Micro financing, Warehousing & commodities, Rural
Marketing, Supply Chain Management etc.
• FMCG, retailing & commodities, agri-inputs, financial sector and other agro based
industries. Considering the experience of the promoters and patronage of the
industry, the pass-outs of this Institute can look for great placement opportunities.
PROBABLE RECRUITERS
Road Ahead
• Agriculture is set to play a more dynamic role in the economy, with
the government's increased focus on the sector. A progressively larger
number of states have been amending their Agricultural Produce
Marketing Committee (APMC) Act, along the lines of the Model
APMC Act, to allow farmers to directly sell their produce to the
buyers.
• Agriculture credit is likely to touch US$ 49.05 billion in 2008, and
agriculture share in total investment is up from 10.2 per cent in 2003–
04 to 16 per cent for the 11th Plan.
• Significantly, services related to agro and allied sectors have been
thrown open to 100 per cent foreign direct investment (FDI) through
the automatic route.
THANK YOU !!!