8/13/2019 13440 Greenland Project-1

1/17

8/13/2019 13440 Greenland Project-1

2/17

Ground Reality

Challenges

Key Drivers to be an AGRI

super power

Opportunities

Strategy

Suggestions

8/13/2019 13440 Greenland Project-1

3/17

Source: Task force Report on Development of cold chain in India GOI/CII

The largest grower of fruits 15% of worldoutput

Low share of global Exports at 0.5%

The second largest grower of vegetables 11 % ofworld output

Low share of global exports at 1.7%Cold storage facility available for only 10% of produce

Lowest cost producer of fruits & vegetablesLow farmer income farmer suicide

8/13/2019 13440 Greenland Project-1

4/17

Second highest producer of milk Organized dairy accounts for only 13% of milk produced

Only 70,000 Ton cold storage capacity for 90 million Tones

produced

Poor yield per cow

Second largest cattle population

5500 registered & 25770 unregistered slaughter house with no

chilling, freezing & cold storage facility as hot meat market

prevails

8/13/2019 13440 Greenland Project-1

5/17

Fifth largest producer of eggs

Poultry meat sold as hot in retail market

Sixth largest producer of fish

20 30% damage and no cold storage facility in WB, AP, Goa

Low processing

2.20 % in fruits

35 % in milk 6 % in poultry

Value addition 20%

Indias current share in world trade of processed foods 1.60 %

8/13/2019 13440 Greenland Project-1

6/17

Market surplus of fruits & vegetables 88%

Farmer sells immediately due to perish ability & absence of properinfrastructure to keep it for longer period

Market surplus of food grains60%

Farmer keeps some for own consumption, seed purpose and to giveto 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% indeveloped countries.

8/13/2019 13440 Greenland Project-1

7/17

Politicalenvironment

Strong

credible co-ordinating

& Promotionagency

StrongCorporateleadership

StrongConsumer

base

OptimalAgroclimatic

conditions

8/13/2019 13440 Greenland Project-1

8/17

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

8/13/2019 13440 Greenland Project-1

9/17

Consuming and Processing Industry

Internal consumption to avoid surplus stock accumulation Encourages Economies of scale

Globally Competitive to serve wider base of consumers.

Agro Climatic Conditions

Favorable Growing conditions

Sizeable irrigated acreages.

High land productivity, land being a very scarce resource

8/13/2019 13440 Greenland Project-1

10/17

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

8/13/2019 13440 Greenland Project-1

11/17

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

8/13/2019 13440 Greenland Project-1

12/17

India

Developed countries

High investments Low wastage -better margins

High wastage andlow margins

FarmerCommission

agentConsolidator

Trader Wholesaler RetailerConsumer

Farmer

Wholesaler

RetailerConsumer

8/13/2019 13440 Greenland Project-1

13/17

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

8/13/2019 13440 Greenland Project-1

14/17

Included in the list of Priority sector lending by banks since 1999

Most of processed food Exempted from purview of licensing under theindustries (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

8/13/2019 13440 Greenland Project-1

15/17

Horticulture crops Fruits vegetables and flowers cover 7% of croppedarea of the country

India ranks First in production of mango (65% of world) Bananas (11%

of world) and papayas

India ranks Second in production of Lime and lemon

Exports quantity increased 4 times & value 10 times in last 15 years

Move to invest in 10 mega food parks in the country

Indian food processing industry averaging a growth of 10%

8/13/2019 13440 Greenland Project-1

16/17

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 andprosperity

Enhanced export earnings to compensate for any slow down in IT

related exports

India - Sone Ki Chidiya

8/13/2019 13440 Greenland Project-1

17/17

THANK YOU