Escolar Documentos
Profissional Documentos
Cultura Documentos
Gaurav Goyal
Vikas Singhania Jay Patel Deepak Arora
Shashi Paul
Siraj Kureshi
Challenges
Opportunities
Strategy
Suggestions
Second highest producer of milk Organized dairy accounts for only 13% of milk produced
Second largest cattle population 5500 registered & 25770 unregistered slaughter house with no
chilling, freezing & cold storage facility as hot meat market prevails
to labor as wages Loss in above equal to annual food grain production in Australia Cost of wastage 6 times amount spent on food subsidy
Farm gate price 25% of domestic consumer retail price against 50% in
developed countries.
Political environment
Political Environment
Attracts Investment Provides Stability Encourages Infrastructural development Strong credible co-ordinating & promotion agency R & D initiatives including development of high yielding varieties Financial & Technical Assistance Extension activities Grower awareness Strong Corporate Leadership Risk taking abilities Managerial skill development Risk mitigation
Internal consumption to avoid surplus stock accumulation Encourages Economies of scale Globally Competitive to serve wider base of consumers.
Low Level Of Value Addition Bottle necks in cold storage including during transit Seasonality capacity utilization issues e.g. Himachal apples 2006-
07 prod was half of 2005-06 Non Efficient storage/warehousing, processing & marketing techniques Non adoption of efficient technology
Infrastructure and others Shortage of power High electricity tariff Low area under Irrigation High capital cost -Inadequate institutional finance at low rates High insurance premium in risk coverage Farm connectivity by road yet to take off
India
Farmer
Consolidator
Commission agent
Trader
Wholesaler
Retailer
Consumer
High wastage and low margins Consumer Retailer Developed countries Farmer Wholesaler High investments Low wastage better margins
52% cultivable land as against 11% world wide Unsurpassed Natural Advantages All the 15 major climates of the world 46 out of the 60 soil types 17% animal, 12% plant and 10% fish genetic resource of the world Food processing sector ranks fifth in terms of contribution to GDP Indian urban food market estimated at 350,000 crore
Source: FICCI/KPMG study and Task force Report on Development of cold chain in India GOI/CII
Included in the list of Priority sector lending by banks since 1999 Most of processed food Exempted from purview of licensing under the
industries (Development & regulation) Act, 1951, except items reserved for small scale sector & alcoholic beverages
Excise duty for processed fruits & vegetables, food mixes etc. NIL Excise duty on reefer vans reduced from 16 to 8% Reduction in customs duty on food processing machinery
Food sector the highest multiplier effect of any industry 2.4 Tripling the size of the industry would generate Direct employment 28 lakh and Indirect employment 74 lakh Thrust in agriculture to be provide the next push to GDP and
prosperity
Enhanced export earnings to compensate for any slow down in IT
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