BY AJAY KASHYAP L.

RALTE MANAS SINGH SUMIT DAVID TIRKEY

SHARE IN GDP:14.2% GROWTH RATE:3.2% TOTAL FOODGRAIN PRODUTION:232.07 million tones EMPLOYED:52% (of total workforce)

SUGAR COTTON TEXTILE FOOD PROCESSING VEGETABLE OIL MEDICINAL AND AROMATIC PLANT PAPER

The second revision of the world sugar balance in the 2010/11 (October/September) crop cycle by ISO puts world production at a record 168.045 million tonnes, raw value, up 4.66% from the last season. India contributes about 12 per cent of world sugar production India have annual sugar production capacity of 23 million tonnes with a total investment of $11000 million

Sugar industry has a potential to generate about 6000 mw of power. Already 50 units have an installed capacity to cogenerate around 900 mw surplus power and a capacity of 1000 mw in the process of being installed by 50 sugar mills.By 2007-08 the total surplus power generated by sugar industry and supplied to the grid would cross 2250 mw. Sugar industry has a capacity of producing about 1300 million litres of Ethanol. India has now as many as 453 working sugar factories with an average capacity of 280000 TCD

WORLD SUGAR BALANCE

2010/11 2009/10 Change (in %) 4.66 2.01 (mln tonne, raw value) (in mln t) Production Consumption 168.045 167.849 160.569 164.549 7.476 3.300

Surplus / Deficit
Import demand Export availability End Stocks Stocks/Consumption ratio in%

0.196
50.309 50.496 58.808

-3.980
53.393 53.023 58.799 -3.084 -2.527 0.009 -5.78 -4.77 0.02

35.04

35.73

SWOT ANALYSIS
Strengths The population and mass consumption indicate robust domestic potential It supports downstream industries by providing raw material Essential commodity of mass consumption It is the focal point of rural socioeconomic development Opportunities Potential to enhance sugar production and sugar recovery rate Increasing demand Significant technological upgradation will enhance yield and recovery Weakeness Low mill efficiency Low-cost sugarcane procurement Vulnerability to political interests Cyclical nature of the sugar industry

Threats High cane arrears to farmers due to low sugar prices Diversion of sugarcane to gur and khandsari Deteriorating soil quality due to increased use of fertilisers and pesticides

Cotton textiles industry in India started with the establishment of a textile mill in 1818 at Fort Glaster near Kolkata. However, large scale cotton textiles industry started in Mumbai in 1854. The textile industry can be divided on the basis of raw materials used in them. Fibres are the raw material of textile industry. Fibres can be natural or man-made. Natural fibres are obtained from wool, silk, cotton, linen and jute.

Cotton textiles production grew by 10.1% during April November 2010-11 as compared to 3.6% during April-November 2009-10. During 2009, China had a 28.3% share in world textile exports as against Indias share of only 4.3%. In clothing exports,China had a share of 30.7% as against Indias share of 3.6%. Indias textile exports grew by 6.31% during 200910 as against a decline of 5.0% during 2008-09. FDI inflow in April-NOV 2010-11 was $56.2 million.

During 9th five year plan Rs. 55.00 crores During 10th five year plan Rs. 165 crores During 11th five year plan Rs. 100 crores (the total outlay of the plan up 31.3.2009 is Rs. 241 crores)

China India USA Pakistan Brazil Uzbekistan Australia Turkey Turkmenistan Greece

33.0 27.0 18 10.3 9.3 4.6 4.2 2.8 1.6 1.4

Some of the facts about the Indian agro processing industries are: According to some estimates, output of the food processing industry was ~Rs. 460,000 Cr in 2003-04. The output of primary processing was around Rs. ~280,000 Cr; the output of value added products was around Rs. 180,000 Cr Organized players account for ~25% of output in terms of volume, while the unorganized and small scale industries account for ~75% The industry grew at a rate ~7% from 1998-99 to 2003-04 (MOFPI annual report 2005-06) The wastage of food products is estimated to be worth ~Rs. 60,000 Cr The ministry of Food Processing Industries in its Vision 2015 document wants to treble the size of the food processing sector by 2015

The ministry of Food Processing Industries in its Vision 2015 document wants to treble the size of the food processing sector by 2015 The processed food industry ranks fifth in size in the country representing 6.3% of the GDP, accounts for 13% of the countrys exports and involves 6 percent of total industrial investment in the country. The industry employs 1.6 million workers, who constitute 18% of the countrys industrial labourforce. In India, only 2% of fruits and vegetables are processed as opposed to 80 percent in Brazil, 80% in Philippines, 83% in Malaysia and 30% in Thailand.

The processing of agriculture produce to obtain edible products is called as Food Processing Industry. The various food processing industries are: Marine Products Bakery and Confectionery Ready To Eat Food Drinks and Beverages Foodgrain Milling Edible Oil Medicinal products

Raw Material Procurement Raw materials are primarily agriculture produce such as: Cereals Pulses Dairy Fisheries Forestry Vegetables and Fruits Spices Cotton, etc.

Processing of Raw Material Raw material is then processed processing can be primary or secondary processing Some of the processes are: Cutting Milling Moulding Fermenting, etc.

Packing and Storage Raw material is then packed Food products generally require to be stored at specified temperatures Many products such as frozen fruits and vegetables require cold storage

Finished Product Shipment Some of the finished products are: Wheat Flour Dairy Products Milk Powder, Ghee, etc. Bakery and Confectionary Items Ready to eat snacks, etc.

Strengths Availability of raw materials Recognition of agro-processing as an important sector Vast network of manufacturing facilities all over the country Vast domestic market

Weakness Lack of scale of operations Inadequate automation w.r.t. information management Inability to attract young talent Inadequately developed linkages between R&D labs and Industry Lack of adequate marketing Threats Competition from global players Loss of trained manpower to other industries and other professions better pay in other sectors

Opportunities Wide variety of crop availability Integration of developments in contemporary technologies such as electronics, material science Branding of agro-products Availability of labourers

Vegetable fats and oils are lipid materials derived from plants. Vegetable oils are used as an ingredient or component in many manufactured products. Many vegetable oils are used to make soaps, skin products, candles, perfumes and other personal care and cosmetic products. Vegetable oils are also used to make biodiesel, which can be used like conventional diesel.

Oilseeds and edible oils are two of the most sensitive essential commodities. Production of 28.21 million tonnes of nine cultivated oilseeds during the year 2007-08 India contributes about 6-7% of the world oilseeds production. Export of oilmeals, oilseeds and minor oils has increased from 5.06 million Tones in the financial year 2005-06 to 7.3 million tons in the financial year 2006-07.

Oil Year (Nov.Oct.) 2000-2001 2001-2002

Production Net availability of edible Consumption of Edible of Oilseeds oils from all domestic Oils (from domestic and (lakh tonne) sources(lakh tonne) import sources)(lakh tonne) 184.40 206.63 54.99 61.46 96.76 104.68

2002-2003 2003-2004
2004-2005

148.39 251.86
243.54

46.64 71.40
72.47

90.29 124.30
117.89

2005-2006
2006-2007 2007-2008

279.79
242.89 297.55

83.16
73.70 86.54

126.04
115.87 142.62

Oil source

World consump tion (million tons) 41.31

41.28 18.24 9.91 4.82 4.99

Notes

Palm
Soybean Rapeseed Sunflower seed Peanut Cottonseed

The most widely produced tropical oil, also used to make biofuel
Accounts for about half of worldwide edible oil production Accounts for about half of worldwide edible oil production A common cooking oil, also used to make biodiesel Mild-flavored cooking oil A major food oil ,often used in food processing

Palm kernel Coconut

Olive

4.85 3.48
2.84

From the seed of the African palm tree Used in soaps and cooking
Used in cooking ,cosmetics soaps and as a fuel for traditional oil lamps

Almost 45000 plant species(nearly 20% of global species)occure in INDIAN sub-continent. About 3500 species are of medicinal value. More then 80% of medicinal and aromatic plant(MAP) are collected from 17 million hectares of INDIAN forests. INDIA utilizes almost 8,000 species in 10,000 herbal drug formulations. Herbal medicines have an estimated market value of more then US$ 75 Billion (WHO,2001) India total herbs and herbal products export is about US$ 800 million

Paper industry in India is the 15th largest paper industry in the world. The Indian Paper Industry accounts for about 1.6% of the worlds production The estimated turnover of the industry is Rs 25,000 crore (USD 5.95 billion). The industry provides employment to more than 0.12 million people directly and 0.34 million people indirectly.

The demand is growing @ 7% to 8% CAGR per Annum. The per capita consumption of paper in India is very low i.e. 7 Kgs in 2006, as compared to an average consumption of 28 Kgs and 58 Kgs in Asia and world respectively. The per capita consumption is expected to increase to 12 Kgs by 2020. According to ITCs estimates, the total demand for paper is around 8.0 million tonnes and is expected to grow to 10.0 million tonnes by 2012 and 21.0 million tonnes by 2020.