Agriculture Sector in India April 2013

7/30/2019 Agriculture Sector in India April 2013

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Agriculture Sector in India

Monthly Update

April 2013



Agriculture – Monthly Update

Top Story

Krishi

card

to

be

introduced

in

Goa

Government of Goa launches digital krishi card for the farmers. This card will be used by the

farmers as a gateway to avail the krishi loan and subsidies provided by the state government.This card is launched based on the data base created by the state agriculture department.

As per state government, this digitally coded card will free the farmers from repeatedlyproducing the documents to avail the subsidies. Previously, farmers need to submit the

documents such as affidavits every time whenever they apply for the agro subsidy. Now, they

only need to mention the unique identity number to get that subsidy.

Around 10,000 – 15,000 farmers with the clear land holdings would be benefitted from this

card during the first phase followed by the landless farmers. Loan up to INR 30,000 would bemade available through government empanelled financial institution to the farmers who

have minimum of one hectare land.

News Update

General Haryana government has increased amount of interest free wheat loan

Government of Haryana has increased the amount of interest free wheat loan to its employeefrom INR 10,000 to INR 11,000 during the current financial year. This move, taken by the

government, would help about 60,000 employees in the states.

Class IV and III employees who are getting basic pay plus dearness allowance up to INR

7,000 in pre‐revised scale and up to INR 8,000 in revised scale, are eligible to access this loan.

The loan would be recovered in 10 equal monthly installments.

However, this loan would not be sanctioned to the people who are either daily wage

employees or on deputation in corporation or local bodies. In addition to this, if both thehusband and wife are government employees then either of the spouses would be granted

this facility.

Procurement of Haryana's staple agriculture product, wheat to hit new highs this season

The current season saw the procurement of more than 3.2 mn tonnes of wheat by Haryana,

which is clearly one of the staple agricultural products of the state. Government agencies

accounted for the major portion while only 903 tonnes of wheat were purchased by private

millers and traders.




Major purchasers of the crop included key agricultural products corporations HAFED, Food

and Supplies Department, Food Corporation of India, Haryana Warehousing Corporation,

Haryana Agro Industries Corporation and CONFED among others.

As an impetus to the growing agriculture markets in the country, the state is looking to

procure 8.6 mn tones of the crop in this coming season.

Wheat exports expected to touch 7.5 mn tones It is expected that wheat exports will touch a record high of 7.5 mn tones by this marketing

year end i.e by June’13 due to record production of this agriculture product. It was relativelymuch lower for the marketing year 2011‐12 as after lifting the ban on wheat exports only

private traders were allowed to export the crop.

Mainly to reduce the unwanted inventory stock of this agriculture product, Indiangovernment is concentrating on wheat exports. State run firms were already given

permission to export near about 4.5 mn tones of wheat. However it is assumed that in globallevel wheat trade might be declined marginally to 140 mn tones from last year 147 mn tones.

Production of milk to increase by 1.8 mn ltr in Bihar Agriculture being the backbone of Bihar economy, state government had increased milk

production from 0.45 mn ltr in the year 2005 to 1.8 mn ltr in the current year.

As per the chief minister of the Bihar, the state will progress faster only if income of farmersincrease manifold. The interest on agriculture loan is 3%, and for vehicle purchase it is 7‐8%.

However, it is comparatively higher for rearing animals, fishery and egg production at a rateof 13‐13% per annum.

Central Government to fund irrigation projects in Naxal-hit areas

Government of India, in an attempt to enhance the livelihood and standard of living of peopleresiding in the naxal hit belts, has planned to fund minor irrigation projects. The states

identified for this initiative include Jharkhand, Odisha & Chhattisgarh.

As of now, most of the left‐wing extremism‐affected states fall under the general category

state status and hence are poised to reap benefits from this initiative by the government.Currently, only the general category states receive funding for minor irrigation on

completion of the criterion that at least 50 hectare of land to be irrigated serves tribal anddrought prone areas

Ministry of HP to set up six apple processing plant

Government of Himachal Pradesh is going to set up six apple processing plants in the state.The government will do this to ensure returns in terms of remuneration to apple growers.




The ministry has planned to set up these plants at Rampur, Rohroo and Chopal in Shimladistrict, outer Siraj and Patli Kuhl in Kullu district and Churah in Chamba district. These

plants will have the capacity to process 20,000 metric tones of apples annually. Under sized

apples which fell to fetch good return in the market will be processed on the spot at theseplaces and then transported to processing unit at Parwanoo and after that sold in the market as value added product.

Delay in transport subsidy to ruin mango export opportunities Mango export from Malda zila in West Bengal to Bangladesh has been cancelled due to delay

of approval of transport subsidy scheme for mango. Bangladesh was the largest importer of

Malda mango.

Malda and Murshidabad were declared as the ‘agri‐export zone’ in the year 2003 for mango

export with a investment proposition of INR 310 mn by the government. In the old transport

subsidy scheme, subsidy was given for the stocks handled through air or water route onlynot for the stocks handled through surface transport.

A joint research collaboration on wheat to be launched by India & US

India along with the United States of America is going to start a multi million dollar joint

research collaboration to develop wheat varieties which can bear high temperature.Requirement for this type of varieties being felt by the experts due to global warming and

rise in temperatures, as this can be harmful for production of cereal crops such as wheat. The

project will be led by an Indo‐American scientist from Washington State University. The step

is a part of US government’s global hunger and food security initiative.

The main focus of this research is the area adjacent to North Indian rivers where people arefacing challenges such as shortage of water and high temperature. However, the project will

benefit all the wheat growing region of the world.

Government has developed a programme for crop production forecasting A prgramme has been developed by the government to forecast the crop production by using

satellite data provided by Indian Space Research Organization (ISRO). This forecast would beavailable under Space Agro‐Meteorology and Land Based Observations (FASAL) programme.

The programme has been developed to get better forecast for pre‐harvest crop production.In addition to this, the technologies developed by the ISRO will be implemented through

Mahalanobis National Crop Forecast Center.




News Update

Regulatory Punjab

Government

has

announced

50%

subsidy

on

diggers,

graders

and

planters

for

potato plantation

Government of Punjab has announced 50% subsidy on diggers, graders and planters in orderto increase the potato production in Punjab.

The state government had already started this process for setting up of ‘Indo‐Dutch potato

and seed center’ as a joint venture with Holland. The chief minister has asked the chairman,powercom to streamline the supply of electricity in all the potato growing areas to ensure

adequate day‐time power supply for better yield.

Tamil Nadu to allocate INR 49 bn as food subsidy

Government of Tamil Nadu has planned to allocate INR 49 bn as food subsidy for the year2013‐14 with a focus to the programme of rice distribution.

Out of the total 49 bn, INR 31.7 bn being allocated for the rice distribution for those who are

under the ‘Antyodaya Anna Yojana’scheme and rest INR 10.06 bn was allocated for specialpublic distribution system where in essential commodities such as dal, edible oil will be

supplied at a subsidized rate.

Moreover, biometric based ration card scheme which is now implemented only in

Pudukottai, will be further implemented to Ariyalur, Karur, Tiruchirappalli, Perambalur,

Cuddalore and Tiruvarur districts.

Industry Expert Speak

Additional 20 mn tones food grain storage capacity required by the government– K V Thomas, Minister of State for Food "A requirement of 20 million tonnes of storage capacity in the medium term for storing thecentral stock of foodgrains has been assessed by an expert committee”




Transactions (Feb 2013 – April 2013)

Date

Buyer

Target

Deal

Size

(INR mn) % stake

Deal

Status

Type

of

Transaction

29th April,

2013

Ruchi Soya

Industries

Kagom Co.

Mitsui & Co.N.A. 40% Pending JV

10thApril,

2013Herba Foods Olam Agro India 773.7 100% Completed M & A

15thMarch,

2013

Omega Ag‐seeds Gayatri sea foods N.A. 26% Pending M & A

6th

March.2013

Bennet, Coleman& Company Ltd.

DalmiaContinental

N.A. 12% Pending M & A

6th March.

2013

Fab India Organic India 150 40% Completed M & A

4th Feb.2013

Nestle India Ltd. Indocon Agro N.A. 26% Pending M & A

Annual Financial Results – Revenue (INR mn)

Companies FY ‘09 FY ‘10 FY ‘11 FY ‘12

Deepak Fertilizers &Petrochemicals Corporation

14,804.80 13,293.00 16,279.00 24,115.70

Southern Petrochemical

Industries Corporation Ltd.18,317.0 11,557.4 13,362.2 27,400.5

The Fertilizers and ChemicalsTravancore Ltd.

21,287.0 21,059.6 24,607.6 28,760.8

Mangalore Chemicals &

Fertilizers Ltd.24,701.00 20,877.20 25,204.60 37,071.80

Gujarat Narmada ValleyFertilizers Company Ltd.

29,200.6 26,144.5 28,458.9 38,620.1

Escorts Group 26,454.40 33,663.10 41,049.20 40,024.90

Jain Irrigation System Ltd 28,695.2 34,348.0 41,745.6 49,384.6




DCM Shriram Consolidated

Ltd.35,580.7 35,704.5 41,345.1 50,067.2

Gujarat State Fertilizers &

Chemicals Ltd

58,808.0 40,191.9 47,550.5 53,018.3

National Fertilizers Ltd 51,271.00 51,031.60 57,910.30 73,052.90

Chambal Fertilizers &

Chemicals Ltd56,041.60 41,335.60 56,856.50 75,381.70

United Phosphorus Ltd. 48,561.00 53,387.30 57,606.80 76,547.20

Coromandel International

Limited95,451.90 64,066.00 75,578.20 98,318.40

Tata Chemicals Ltd. 127,725.7 95,435.5 110,605.8 138,060.6

ITC Ltd. 165,561.40 191,358.70 225,747.00 265,517.90

Mahindra and Mahindra

(M&M)269,197.60 316,879.70 370,695.70 596,433.20

Madras Fertilizers Ltd. 11,235.90 13,028.40 16,312.40 22,148.10

Rallis India Ltd. 8,366.90 8,786.80 10,919.50 12,782.70

Bayer CropScience Ltd 13,961.00 16,260.30 21,373.00 22,747.00

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)

Companies FY ‘09 FY ‘10 FY ‘11 FY ‘12


1,369.80 1,652.50 1,875.20 2,117.00

Southern PetrochemicalIndustries Corporation Ltd. ‐3,406.10 1,021.80 ‐6,259.40 ‐21.80

The Fertilizers and Chemicals

Travancore Ltd.429.50 ‐1,038.40 ‐493.30 198.00


Fertilizers Ltd.278.3 535.70 775.4 691

Gujarat Narmada Valley

Fertilizers Company Ltd.2,275.2 1,238.4 2,665.3 2,838.4




Escorts Group 286.00 1,320.00 1,263.90 738.10

Jain Irrigation System Ltd 1,294.40 2,475.90 2,807.10 2,235.00

DCM Shriram ConsolidatedLtd.

1,226.10 842.50 ‐142.70 119.20

Gujarat State Fertilizers &

Chemicals Ltd1,369.80 1,652.50 1,875.20 2,117.00

Rashtriya Chemicals &Fertilizers Ltd.

2,105.40 2,343.20 2,447.10 2,488.30

National Fertilizers Ltd 974.6 1,715.10 1,385.00 1,267.30

Chambal Fertilizers &Chemicals Ltd

2,255.90 2,172.30 2,405.90 1,583.10



Limited4,676.80 6,936.60 6,387.90 4,872.10


ITC Ltd. N.A. 41,681.80 50,179.30 62,581.40


(M&M)24,785.60 30,797.30 31,266.60 37,124.00

Madras Fertilizers Ltd. 68.8 1,698.60 1,119.90 ‐101.6

Rallis India Ltd. 1,014.90 1,260.40 991.8 1,176.40


* Change in Financial Year Ending

Quarterly Financial

Results

– Revenue

(INR

mn)

Companies Jan-Mar 2012

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Deepak Fertilizers &

Petrochemicals CorporationN.A. N.A. N.A. N.A.





Industries Corporation Ltd.N.A. N.A. N.A. N.A.

The Fertilizers and Chemicals

Travancore Ltd.

7,805.40 5,210.60 7,124.10 6,767.20


Fertilizers Ltd.10,071.60 5,991.90 8,390.60 6,929.70

Gujarat Narmada ValleyFertilizers Company Ltd.

11,543.00 8,709.30 11,657.70 11,192.00

Escorts Group N.A. N.A. N.A. N.A.

Jain Irrigation System Ltd N.A. N.A. N.A. N.A.

DCM Shriram ConsolidatedLtd.

13,317.90 13,390.80 13,370.60

Gujarat State Fertilizers &Chemicals Ltd

15,300.00 14,118.40 14,160.20 17,294.30


N.A. N.A. N.A. N.A.

National Fertilizers Ltd 20,862.50 18,066.60 19,465.70 18,183.80

Chambal Fertilizers &

Chemicals LtdN.A. N.A. N.A. N.A.


Coromandel InternationalLimited

27,801.90 22,516.80 26,606.00 24,009.30


ITC Ltd. N.A. N.A. N.A. N.A.

Mahindra and Mahindra(M&M)

136,485.10 176,708.10 92,525.80 102,425.70

Madras Fertilizers Ltd. 4,671.50 5,135.30 6,683.60 7,644.70

Rallis India Ltd. 2,387.60 3,383.10 4,806.20 3,398.10


* Change in quarter




Quarterly Financial Results – Income (INR mn)

Companies

Jan-Mar

2012

Apr

-Jun

2012

Jul-Sep

2012

Oct -Dec

2012


N.A. N.A. N.A. N.A.


Industries Corporation Ltd.N.A. N.A. N.A. N.A.

The Fertilizers and ChemicalsTravancore Ltd.

342.20 ‐1,041.50 ‐262.60 ‐798.1


Fertilizers Ltd.214.7 ‐125.00 564.2 58

Gujarat Narmada Valley

Fertilizers Company Ltd. 751.6 327.4 723.8 1,007.30

Escorts Group N.A. N.A. N.A. N.A.

Jain Irrigation System Ltd N.A. N.A. N.A. N.A.


N.A. N.A. N.A. N.A.

National Fertilizers Ltd 568.5 ‐520.1 7.4 ‐124.2

Chambal Fertilizers &Chemicals Ltd

N.A. N.A. N.A. N.A.



Limited668.9 1,759.70 2,368.80 683.9


ITC Ltd. N.A. N.A. N.A. N.A.


(M&M)9,505.60 10,263.60 9,780.90 9,149.50

Madras Fertilizers Ltd. 5.6 ‐189.7 428.7 272.1

Rallis India Ltd. 98.8 241.7 615.6 220.3

Bayer CropScience Ltd ‐216.3 887.4 978.5 9,034.00




Events Calendar

Ap-Tech

Date: 06th‐08th June 2013Venue: Regional Agricultural Research StationCity: Tirupati

State: Andhra PradeshContact No: 91‐40‐27765837 Organizer: Confederation of Indian IndustryWebsite: www.biztradeshows.com/ap‐tec‐tirupati/




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Agriculture Sector in India April 2013

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