AGRICULTURE INDUSTRY

A GROUP PRESENTATION

The World Agriculture Industry

Remains the largest single contributor to the livelihoods of the 75% of the world's poor who live in rural areas Worldwide, 1.5bn hectares of land can be classified as suitable for arable production

A periphery as an Investment
An acceptable holding for traditional investment funds Become a focus of investor interest, both as a portfolio hedge against equities and cash or inflation More than $13bn of investor funding has found its way into agricultural land or linked investment

Agriculture Industry In India

140.3 million hectares is net sown area with 193.7 million hectares found to be the gross cropped area India among the world being the largest producer of fresh fruits Second largest population of cattle Third largest producer of tobacco, coconut, rapeseed and tomatoes

ICAR
Apex body in agriculture and the connected arena in the country Supervises and evolves new techniques, and designs the various experiments in addition to analyzing data in agriculture Set up of Farmers Commission to evaluate the agriculture program

Problems faced by Indian farmers

Farmers incapable of developing new ideas Poorly equipped Finance Lack of adequate marketing services

Still the future of Agriculture in the nation is bright due to traditional Indian Agriculture Business

Government Policies

To support faster agricultural development Promote value addition Accelerate the growth of agro business Create employment in rural areas Secure a fair standard of living for the farmers and agricultural workers and their families Discourage migration to urban areas Face the challenges arising out of economic liberalization and globalisation

 Aimed essentially at improving food self sufficiency and alleviating hunger through food distribution To actualise the vast untapped growth potential of Indian agriculture Government supports agriculture through measures including minimum support prices (MSP) for the major agricultural crops, farm input subsidies and preferential credit schemes Subsidies on farm inputs including fertilisers, electrical power and irrigation water

Various Policies
Conservation Economic stability Environmental sustainability Food quality Food safety Food security Poverty reduction

Resource Generation

 Budgetary allocations from the Government On year-to-year basis assessment may be made to bring excess farm area not covered by experimentation under commercial cultivation. This should generate income for these institutions on a continuous basis Introducing revolving fund schemes wherever it may be possible on the strength of adequate flow of earned incomes

Trend Analysis

Contribution In Foreign Trade

Exports from India

 The EU remains its top market, accounting for 16% of the value of export sales in 2009-2010 Trade with neighbouring Bangladesh and China (currently 7.5%) is growing fast. The US market share has remained steady at 10% and also that of Saudi Arabia. Two other commodities, cotton and wheat, are also within the top 10 exports Soybean meal, an intermediate product, is the second most important export with 9% of sales

A closer look at Indias Imports

 ASEAN is by far the biggest supplier of agricultural products to India, accounting for a massive 40% of its imports in 2010-2011 Argentina and Brazil rank 2nd and 3rd respectively while the EU only has 4% market share (down from 7% a decade ago), ranked at number six in 2003-2005

Total Business

Top Performers

Major competitors (International Level)

Adler Seeds AgriSA Agrium Alberta Wheat Pool Archer Daniels Midland AVEBE BASF Bernard Matthews

Berry and Wollstoncraft China Agri Industries Holdings Limited Chiquita Brands International ContiGroup Companies Danisco Daxcon Engineering , Inc

CONCLUSION

World Perspective
The re-discovery of the importance of agricultural assets reveals the very real issues facing mankind in relation to food security at a time of rapid population growth, rising affluence, urbanization, and climate change. These combined pressures on the worlds productive agricultural land are exciting the interest of governments, international humanitarian agencies, scientists, global retailers like Walmart, Carrefour and Tesco, and of course investors.

 Agricultural land is proving a strong investment class on its own, but increasingly, we believe, investor attention will focus on the essential expertise in terms of science, equipment, and management skills that can make the land asset produce what humanity cannot live without food

Indian Perspective
Agriculture occupies a prominent position in Indian policy-making not only because of its contribution to GDP but also because of the large proportion of the population that is dependent on the sector for its livelihood However it is clear that Indias agricultural sector has made huge strides in developing its potential. The green revolution massively increased the production of vital food grains and introduced technological innovations into agriculture

 Where once India had to depend on imports to feed its people, since 1990 it is a net exporter of agri-food products. Its agriculture is large and diverse and its sheer size means that even slight changes in its trade have significant effects on world agricultural markets

 The growth in population and wealth has stimulated demand to the extent that domestic production has not always been able to keep up and there is increasing speculation that the Indian economy may be overheating leading to inflation. The downside of the increased import demand and the current commodity boom is that Indias food import bill will rise sharply