A Bird Eye View On Agriculture Sector Of India

AGRICULTURAL SECTOR IN AGRICULTURAL SECTOR IN INDIAINDIA• 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 AGRICULTURAL SECTOR IN INDIAINDIA• 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.

ProductionProduction• 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.

ProductionProduction 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.

ProductionProduction• 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.

ExportExport• 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.

ExportExport

ExportExport• 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.

HorticultureHorticulture• 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.

HorticultureHorticulture

• 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.

InvestmentsInvestments• 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.

InvestmentsInvestments• 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 Value Chain of Agricultural SectorSectorSeeds:• 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 Value Chain of Agricultural SectorSectorCredit 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 PGD in Agribusiness ManagementManagement• 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 PGD in Agribusiness ManagementManagement• 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 Employment Scenario in Agricultural sector.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 Employment Scenario in Agricultural sector.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 AheadRoad 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.

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