AGRITECH INDIA NEWSPAPER

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Milestone

AgriTech India March 2012

India’s Rice Output Touches 100 MT Mark – T Nandakumar, Former Union Secretary, Food & Agriculture

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ndia has just recorded a production of 102 million tonnes of rice this year, up from 96 million tonnes last year, and up from the alltime high of 99 million tonnes in 2008-09.

Important Landmark Why is this important? First, rice is a staple diet for a large number of poor people in India, particularly in southern and eastern India.

Hunger and malnutrition is comparatively higher in most of these regions. An increase in production, resulting in adequate supplies will keep prices under check, and increase access to their preferred food.

Second, at the macro level, it is difficult (almost impossible), to import rice in times of shortage. The global rice trade is small, approximately 30-35 million tonnes, of which almost half is high-priced rice like Basmati and Thai scented rice. If India or China enters the market to buy rice, it can send prices soaring to astronomical levels. India, therefore, cannot afford a shortage of rice at any point in time.

Third, this growth has been led by the eastern region. Bihar and Jharkhand have recovered from a drought last year with bumper harvests.

The performance of states like Bihar, Uttar Pradesh, Orissa, Chattisgarh, Jharkhand, and West Bengal has been better than their previous best. This is proof that there is a resurgence of agriculture in these regions, and that the new initiatives like Rashtriya Krishi Vikas Yojana (RKVY), National Food Security Mission (NFSM), and the Eastern India Agriculture Initiative, are working. This is an encouraging development from a national point of view, since current levels of rice production in Punjab aren’t sustainable. Abundance of water and the potential to increase productivity in Eastern

India has long been recognised. However, the breakthrough didn’t come for a variety of reasons, including low seed replacement ratios, low and injudicious application of fertilisers and poor extension services, among some other factors.

Challenges Ahead Sustainable increase in productivity: It isn’t enough to achieve a productivity increase in one year and revert to the previous level the next year. 100 million tonnes has to be the benchmark. A moderate increase compared to the previous year’s production has to be the mantra for the coming years. It is, therefore, 100-plus million tonnes, year after year. This isn’t easy. Given the vagaries of the climate, and the competing priorities for farmers, this would be quite a challenge. Continuous attention to water management, timely availability of

Bengal’s rice mills face cash crunch

quality inputs, and farmer-friendly extension services will have to be provided.

Ensuring remunerative prices: Most farmers are aware that higher production results in a glut, and a consequential drop in prices. The Minimum Support Price (MSP) mechanism is expected to take care of this. Theoretically, the Commission on Agricultural Costs & Prices (CACP) takes care of this in their recommendations. The Union Government has generally accepted the price recommendations of the CACP, sometimes improving upon them.

The catch, however, is in the implementation.

There are reports that farmers in some regions don’t get the MSP, and are forced to sell at prices that are much lower. CACP itself is on record saying that, in some regions, this is the actual situation.

Unfortunately, most of such regions are in eastern India, where we want to see

early 1000 rice mills in Bengal are currently facing a severe cash problem due to the sinking of the prices below minimum support price (MSP).

The obvious reason behind this crisis is attributed to over-dependence on the open rice market.

In older market system, the government bought nearly 20 percent paddy (dhan), which freed rice mills from cash involvement. The government’s cooperatives procured it at MSP directly from farmers. Then, it was its responsibility to change it into rice which it did by paying milling charge to various rice mills. But now, this system no longer exists, and the new system is very much open to market risks.

This time, the mills procured paddy from farmers at the usual rate of Rs.1080 per quintal. Since the milling charge is Rs.65 per 100 kg of paddy, the mills registered loss of nearly Rs.100 per quintal, as it had to sell rice at the prevailing rate of Rs. 1500 per quintal. This suicidal economy put them in worrying condition financially.

Expressing his views on this grim scenario, President, Arambag Rice Mills Association, Dhirandranath Roy said that the condition is in such a terrible shape that rice mills have no money to buy more paddy. “It certainly warrants government attention”, he said.

Since there are no middlemen now, rice mills cannot procure any loan from any quarter. To arrest further loss, the mills are not releasing any more rice in the open market. This has left them in red spot. Arambag, which is hub of rice mills, has reported 40 percent less production of rice this season.

The state government’s sudden move to terminate the licenses of 500 cooperative societies and banning middlemen has put the rice mills in the troubled spot.

The arotdars or middlemen provided cash whenever these mills needed it. The mills were asked to pay farmers through cheques to end cash-based transaction. A mill owner said the government loved to reform the whole chain system, but it failed to foresee such problems which might appear in such cases. This is basically a policy fallacy.

Since, the cash flow dried up, the rice mills are now left with no option but to withhold the rice selling and paddy buying activities. This has put a chain-like hurdle in many sections of this industry.

The government pays very late for its procurement, which also affects the poor capital condition of these mills. The 15 or 20 day delay in payment has been a matter of worry for all rice mill owners.

The state’s apathy could be guessed from the statement made by State Food and Supplies Minister J Mallick. He said, “This is a matter of rice mills, and the government has no role to play”. He only promised to clear government’s dues and nothing else. This has put off any sign of hope of a government intervention to save the rice mills from this cash crisis.

significant growth in agriculture. The Centre expects the States to do a substantial part of the procurement under MSP, and the States expect the Food Corporation of India (FCI) to do more.

For the farmer, it doesn’t make a difference. He gets paid much less than what he is entitled to. This failure to ensure MSP could well be counter-productive for plans to sustain the growth of productivity in rice.

Want of infrastructure: One of the most important reasons for low productivity is absence of infrastructure. Most of these regions where production is expected to increase don’t have adequate warehousing either in the private or public sector. This causes great difficulties for procurement agencies, companies and individuals who intend to buy paddy in these regions. Also, poor farmers don’t get any space to store their crops, thereby forcing them to make distress sales. Even the new Warehousing Development & Regulation Act, which enables issue of fungible warehouse receipts, won’t help these farmers, since they will have no access to a warehouse.

So is the case with roads. In the absence of all-weather road connectivity, procurement and large private purchase is impossible.

The inadequacy of rice milling infrastructure in these states is often ignored. The nonavailability of power could prove to be a game-spoiler in a year of erratic rainfall. Quite often, the infrastructure for inputs, namely, seed sellers, fertiliser depots, bank branches, is ignored. So, let us celebrate this hundred, but also commit that we will do all that is necessary to ensure this performance, year after year.

Agri Concerns

AgriTech India March 2012

Sustainability and Productivity must go together: ECPA T

o feed a steadily increasing population, most experts agree that the top priority is to increase food production and, at the same time, to address the related issues of affordable nutrition, safety, biodiversity, land-use and the environment. In other words, sustainability and productivity must go together.

This is why the European Crop Protection Association (ECPA) is committed to an ongoing, broad-based and progressive dialogue on sustainable food security that considers all these key issues together. It sees this as the most promising path to a sustainable course of action for European agriculture, organizers of ECPA conference told a press meet. The conference was part of Fruit Logistica held in Berlin.

Public understanding of agricultural progress is problematic, said a conference organizer. The advancements are highly technical in nature and they have been obscured by the urban public’s increasing isolation from its agricultural roots. These factors translate into politics and regulation. Hence, food safety and the environment, however legitimate as issues of concern, dominate today’s legislative framework under the banner of sustainability rather than the maintenance of a reliable supply of abundant, affordable, health-giving food.

The problem is we need both. Sustainability and productivity must be considered together or the narrow pursuit of one undermines the other.

Time to rediscover productivity in European agricultural policy Analysis of the recent price booms in agricultural and food markets shows that productivity increases have slowed down for major crops in Europe as well as developing countries; total factor productivity growth in agriculture globally is stagnating and actually declining in major regions of the world including Europe.

“This situation is rooted in a neglect of R&D funding for productive agriculture in European institutions, generally, and a lack of productivity orientation in agricultural policy-making, in particular,” said Dieter Kirsche of the Humboldt Institute and author of Rediscovering Productivity in European Agriculture.

“Hence, it is time to rediscover productivity as a major objective in European agricultural policy-making. We cannot simply ignore the implications of the environmental focus of the EU’s Common Agricultural Policy on food prices and food security in a changing world.

And we cannot disregard the international implications of European environmental and bio-energy policies.” He added.

Minor use? … major problem This perspective is particularly relevant when we look at EU crop protection regulations and how fruits and vegetables are classed as “minor crops”. “Minor use’ is the regulatory term used for a crop protection application for fruits, vegetables and other crops that require a tailor-made solution for protection from pests and disease. These crops are a much favoured part of the European diet and account for over €60 billion per year, more than 20 per cent of the EU’s total agricultural production value; hardly a minor consideration.

We say “minor use could become a major problem”, because fruits and vegetables face an increasing shortage of economically viable crop protection solutions in Europe. As a result, productivity is at serious risk. A complex set of factors is responsible, including recent overall reduction of options in the farmers’ pest management toolbox, pesticide authorization requirements under current European and national frameworks, and the long time lines and high costs associated with research and development.

These issues have been recently assessed by 10 food chain associations. They agree that, with fewer active substances authorized for disease protection and limited new solutions on the horizon, the problem can no longer be ignored. EU food security and the competitiveness of the whole agri-food chain are under threat. The situation also runs contrary to the World Health Organization and the EU’s own recommendations that eating 400 g of fresh fruits and vegetables per day is the best way to ward off heart disease, diabetes, obesity and cancer.

Food chain calls for new programme to find a solution “We have formulated proposals to resolve

the issue, including the establishment of an EU Minor Use and Speciality Crops Programme, and look forward to seeing the European Commission take the appropriate steps forward,” said Luc Peeters, chairman of COPACOGECA’s phytosanitary group representing European farmers and speaking on behalf of the agri-food chain associations that took part.

“Barring this important discrepancy, it must be said that Europe’s safety and environmental imperatives have served to confirm the path of sustainability embarked upon by our industry,” said Phil Newton, Senior Communications Manager at ECPA. “We will achieve this through continued responsible product development and dedicated outreach to farmers to ensure that our products are used in the way they are intended: with great care for users, consumers and the environment as we help secure an abundant supply of affordable, health-giving food for all. This is what we mean by stewardship.”

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Farm technologies not reaching farmers: PM

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peaking at the Golden Jubilee convocation of the Indian Agricultural Research Institute (IARI), Prime Minister Manmohan Singh said that farm technologies are not reaching farmers on the ground. “It represents the failure of the system,” he lamented.

The annual farm growth rate was expected to be 3.5 per cent in the 12th Plan period ending this year, he said, but there was concern over the gap between crop yield per hectare and the achievable potential under ideal farming practices.

“It is the job of the administration to close this gap and our farm strategy must prioritise this effort,’’ he pointed out.

“The 3.5 per cent per annum growth rate is commendable but we must improve upon it to reach 4 per cent or even higher in the 12th Plan,” he said, adding that this would require a determined effort by the Centre and the States.

The Prime Minister’s remarks came after Union Agriculture Minister Sharad Pawar presented him with a scroll conferring the honorary doctorate of science by the Institute.

Pawar is president of the Indian Council of Agricultural Research, IARI’s parent body.

Dr. Singh said he was worried that the agriculture extension services system — responsible for taking the Green Revolution to the farmers — was no longer robust. There was a pressing need to revitalise it with the help of Krishi Vigyan Kendras, Agriculture Technology Management Agencies in collaboration with panchayats, farm scientists and district-level officials.

Stating that farm research was the key element in achieving higher expansion, he said the agricultural research system should be strengthened to meet future challenges in water and soil management, provision of farm

Agriculture Minister Sharad Pawar confers IARI’s honorary doctorate of science on Prime Minister Manmohan Singh at the Golden Jubilee Convocation of the Indian Agriculture Research Institute in New Delhi

credit and marketing support.

“One requirement is the financial resources.

Our government is committed to raising research and development spending as a whole to at least 2 per cent of the GDP by the end of the 12th Plan from the current level of about one per cent,” he said.

The Prime Minister said policy initiatives in the farm sector had paid off as the country’s food grain production this year was set to exceed a record 250 million tonnes.

It is estimated that the country would need an additional 50 million tonnes of food grain in the next 10 years to meet the domestic demand, he added.

Earlier, IARI Director H.S. Gupta pointed out that achieving parity with the global level of excellence was possible only if the Indian scientists enjoyed international level of investments to restore the weakening infrastructure.

Seeking parity of investments in research and development to two per cent of the GDP as in other developing countries such as Brazil and South Africa, he said: “Higher allocation could make best use of the public funds to ensure food and nutrition security and empower millions of Indian farmers.”

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News & Event Report

AgriTech India March 2012

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Focus on safety of animal feed from chemical A Bureau Report

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he quality of animal feed is directly linked to the quality of livestock food productions both in terms of taste and quantity, and the most concerning issue today is the safety of the feed from chemicals and residues,” said Yukol Limlamthong, Permanent Secretary, Ministry of Agriculture and Cooperatives, Thailand, while inaugurating VICTAM ASIA, FIAAP ASIA and GRAPAS ASIA 2012 at BITEC (Bangkok International Trade & Exhibition Centre), Bangkok on 15 Feb, 2012.

The 3-day event is South East Asia’s largest and the most admired exhibition cum conference on animal feed production. The show was attended by senior trade executives from Asia/Pacific region and exhibitors from all over the world who displayed their latest technology and systems required for the safe and economical production of animal feeds, dry petfood and aquafeed.

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Editor : Syed Jafar Naqvi Vol 2...... Issue 11 ...... March 2012

NABARD starts post-harvest loan scheme for farmers

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o lessen the farming woes of farmers, NABARD (National Bank for Agriculture and Rural Development) has launched a new scheme that encourages banks to give postharvest loans. It is a great move as farmers always wonder how the price of produce suddenly goes up the moment it leaves their hands. The crop in their hands is quoted below the MSP (minimum support price). A week or two later, prices in the secondary and tertiary markets skyrocket, leaving fruits of their labour somewhere else.

Farmers who sell their produce very cheap soon after harvest due to lack of working capital and for repaying crop loans can now aspire for low-cost loans. They need not sell their produce for low prices just to meet small time needs.

About 10.62 crore farmers in the country

having “Kisan Credit Cards (KCC)” will be eligible for these loans.

Though, banks give loans for post-harvest needs of farmers, the interest rates charged range in 15-17 per cent which is expensive for farmers. The new initiative by NABARD will allow banks to give loans at 7 per cent. Besides, it will offer interest subvention, taking care of interest burden on additional funds the banks might require.

P Mohanaiah, Chief General Manager of NABARD (Andhra Pradesh), said, “In most cases, they go for distress sale, with prices falling well below the minimum support price (MSP). They do not get any advantage of the real demand in the market for their produce.

The new scheme will help them discover better price. They can wait till market favours them”.

“Presently, chemical free meat commodities have become an important issue of the world,” Limlamthong said.

“With the concern in quality and safety of agricultural products, the Ministry of Agriculture and Cooperatives realizes that it is important to simplify technical knowledge and modern technology in production of raw material procurement, ingredients, manufacturing, technology, machinery, processing, storage and agriculture to primary producers”.

“This is vital for us to be able to ensure and solidify our quality and safety of the exported agricultural commodities as well as to protect and maintain our sustainable environment and ecology,” the Secretary added.

After the ribbon cutting ceremony with the VICTAM Board, the doors to the exhibition were opened and visitors from all over the world flooded the floor.

More than a third of the visitors came from around 66 countries, said Victam Managing Director Henk van de Bunt.

A total of 166 exhibitors from 29 countries including 12 from Asia welcomed the visitors.

This time, the exhibitors acquired 30 per cent more space individually and built larger stands. Awards were also given to the eligible exhibitors.

Krishi Vigyan Mela promotes urban farming

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ndian Agricultural Research Institute’s Pusa campus held Krishi Vigyan Mela that ended on March 3, 2012. At the mela, the agricultural scientists inspired urban inhabitants living in flats and bungalows to start container gardening and use their balconies to grow vegetables.

They said that giving space to five little pots on a balcony can help one to cook colourful and nutritious meal. The mela focused on farming technologies for urban farmers. The scientists promoted container gardening which includes a variety of seasonal vegetables and exotic herbs that can fulfill the regular needs of a small family.

They also said since vegetables grown on the Yamuna flood plain contain pesticides and toxic metals, container gardening becomes an even more healthy option. Pritam Kalia said, “The focus is now mostly on cereal crops instead of vegetables. But only the right balance of vegetables and cereals can provide a balanced diet. It can raise the income of small farmers who are cultivating vegetables. Moreover, there is hardly any space to farm in urban and peri-urban areas these days, so people must use their balcony or terrace space”.

The IARI scientists focused more on hybrid technologies than organic farming as most of the healthy looking plants had been developed in the IARI labs through cross breeding.

The container gardening stall attracted a lot

the host, VICTAM Group sponsored travel and accommodation arrangement of media houses which create an impact on visitors’ profile and their numbers from India at the show.

The event had many attractions and conferences like Aquafeed horizons, Petfood Forum Asia, Pellet Update Asia, organized by different independent known publication houses. A large number of companies had introduced new products at this show and also earned awards.

Awards The Aquafeed Innovation Awards, sponsored by Aquafeed.com, were given away to Dr Eckel GmbH (Germany), Geelen Counterflow (Holland), Jiangsu Muyang Group (China), Nanchang Li Feng Industry and Trading Co. Ltd. (China), P.L.P. Liquid Systems s.r.l. (Italy), Shandong Yingchun Steel Silo Manufacturing Co. Ltd. (China), Wenger Manufacturing, Inc. (US), Zhanjiang Hengrun Machinery Co. Ltd. (China), Zengchang Group (China). They received the awards for being the finest in aquafeed ingredient, additive or processing technology.

The FIAAP Animal Nutrition Awards, sponsored by AllAboutFeed, were given to A.W.P. s.r.l. (Italy), Buchi Labortechnik AG (Germany), Kemira Asia Pacific Pte Ltd. (Singapore), Nanchang Li Feng Industry and Trading Co. Ltd. (China), P.L.P. Liquid Systems s.r.l. (Italy). They were given the awards for the excellence in animal feed ingredient or additive.

The 2012 VICTAM Awards for Milling, sponsored by Grain and Feed Milling Technology, went to Agentis Innovation (Thailand), Buhler AG (Germany), FOSS (Denmark), MORRILON (France), Norvidan Overseas A/S (Denmark), Van Aarsen International (Netherlands). They got the awards for achieving excellence in milling or grain processing technology/system.

Bareilly farmers take part in agro-info meet

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any farmers from Bareilly district attended the event “Media meet and showcasing of technologies”, which was recently jointly organized by Indian Veterinary Research Institute (IVRI), Izatnagar and G B Pant University of Agriculture and Technology (GBPU A &T), Pantnagar. The theme of the one day-day meet was “Mobilizing mass media support for sharing agro-information”.

The meet was held at IVRI, Izatnagar and was sponsored by ICAR, New Delhi under the National Agriculture Innovation Project (NAIP).

Around 100 people attended the meet. Apart from farmers, the list also included agriculture scientists, Veterinary experts and media personnel. The meet was inaugurated by Dr Triveni Dutt, Joint Director (Extension) IVRI. The chief guest M. C. Sharma stressed on the fact that mass media must be used to convey useful information and services to the farmers.

of curious visitors. It sold many Rs. 50 kits for kitchen gardens. A buyer said that she bought with a hope that her balcony would look as lush as the vegetables were looking at the fair.

India emerged as one of the most valued and important countries at the exhibition. The proof of this was the presence of many Indian trade visitors including Feed Millers, Poultry & Husbandry companies, Grain & Cereal Millers, Importers and Exporters of technologies apart from representatives of different international Grain Milling companies displaying their innovative technologies like Bhuler, Norvidan, among others.

The organizers were thankful to Indian media for its successful campaign provided by selected quality media houses from India. Being

The BITEC exhibition center is well equipped for machine manufacturers who want to expose their larger pellet mills and ex traders in full due to fewer weight restrictions on the exhibition floor.

Also for the first time, exhibitors showcased their innovations in an Asian show, something that was not seen in previous editions due to fear of copying of equipment by competing Asian manufactures.

But the market seems to have matured and copycats now realize it is not only price that determine sale but also the quality, especially in the fast growing market in Southeast Asia.

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Event Report

AgriTech India March 2012

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Horticulture on the move Expo – Hailed as one of the best

put up a grand show and sent a large delegation.

In all 16 countries were represented in the exhibition. Delegations came from Nigeria, Nepal, Sri Lanka, Bhutan, Germany and Israel.

Twenty Indian states and a number of private sector companies put up impressive pavilions to display their skills and performance in production, processing, and marketing, including exports.

Visibly impressed by the wealth of choice fruits, vegetables and flowers in all colours and shapes on display, Sheila Dikshit noted India has become a great centre for horticulture. Even a decade or so ago, she said, India was not producing so many varieties of vegetables and flowers. Broccoli, baby corn, or even mushroom, are comparatively recent introductions, but they have secured a place in Indian kitchens. She congratulated Indian agriculture scientists who have developed the production technology for a wide variety of good quality vegetables and fruits.

department of environment pavilion. The main attraction in the Tamil Nadu pavilion was a temple Gopuram, over eight feet tall, made of roses and other flowers. The Gopuram’s top was decorated with flowers and ornamentals like bird-of-paradise and Torch-ginger to give a realistic look to the model.

A newly developed pink bird-of-paradise variety, large in size, was prominently exhibited at the Kerala pavilion.

The Sri Lanka pavilion had problem on the first day as its exhibits were quarantined at the Delhi customs. But all those beautiful plant materials were put on display on the second day. The exhibits reflected the amazing variety of plant resources in the country.

However, Sheila Dikshit said, a worrisome aspect is that 40 per cent of the vegetable production is going waste, mainly for want of proper storage facilities. Better yields are very necessary, but equally important is creation of effective cold storage facilities to maintain the quality for the consumers. The next step should, therefore, focus on “conserve for consumption.”

The Netherlands ambassador to India Bob Hiensch said that despite limited land resources, his country ranks as the second highest agri exporter in the world. It has also secured No I place in value addition. He attributed this achievement to use of hitech techniques in production and processing. He pointed out that Holland is already cooperating with government agencies like National Horticulture Mission and National Horticulture Board. This expo itself is a fine example of Indo-Dutch cooperation.

Bhutan’s Ambassador V Namgyel stressed the growing importance of floriculture in Bhutan.

The rich fund of expertise and technologies displayed at this Expo could be of much help to Bhutan and other south Asian countries.

In his address of welcome, Joint Secretary and Mission Director, NHM, Sanjeev Chopra pointed out how increasing family incomes and changing lifestyles are contributing to horticulture getting an important place in agriculture all over the world. The trend is very much evident in India.

Sachid Madan, Co-Chairman of FICCI Agriculture Committee, said fruits and vegetables retailing has an enormous potential in India. It is important to streamline the supply chain. “It is a matter of getting and doing the right things in a systematic manner.”

that the company produces a range of flowers and exotic vegetables in its greenhouses covering an area of 120 acres. The aim is to increase its greenhouse area to 500 acres in the next three years. The present production is 2,50,000 stems of roses, gerbera, carnations, gypsophila, tube roses, gladiolus and liliums.

Participant Indian states were represented mainly by their horticulture, e n v i r o n m e n t and gardening departments. Flowers, fruits vegetables and horticulture products from various states presented a grand spectacle, emphasizing the growing popularity of horticulture among the farmers.

Sikkim gave a fine exhibition of its orchids, while Mizoram excelled with its display of anthuriums of different cololurs, besides other flowers grown by women self help groups.

H i m a c h a l Pradesh’s Department of Horticulture put on view its cololurful carnations, gladiolus, lilium and other flowers.

It was explained that carnation has proved to be a major commercial flower crop for growers in the state. Carnations conforming to International quality standards are being produced in districts of Solan, Bilaspur, Chamba, Mandi, Sirmour and Kullu.

The annual production of cut flowers from the state is 20 million stems with a gross turnover of 75 million rupees.

Large visitor turnout At the three-day exhibition, which drew over 15,000 visitors, maximum crowds were seen at Flora Expo, which, as usual, was at its colourful best. The number of IndoDutch companies there presented a look of a mini Holland. These companies, Indian states and domestic companies engaged in floriculture were vying with one another to display their best produce. Roses, carnations, gerbera, anthurium, orchids, and what have you -- in fact , a wide variety of flowers, and ornamentals in virtually all colours and shapes were on display.

Prominent among the participant IndoDutch companies were Florence Flora, Rise N Shine Floritech, Sheel Biotech, K F Bioplants and Zopar Exports, VWS Bulbs, Saveer Biotech, Two floral art items at their best were at Tamil Nadu and Delhi pavilions. The model of a giraffe made of marigold and other flowers and a mother crane feeding its young one made of white Babuna, a chrysathamum variety, were eye-catching pieces of art kept in front of Delhi’s

Largest producer India’s largest cut flower producing company Ghodawat, based in Kolhapur in western Maharashtra, set up a large pavilion to showcase its performance. An official explained

F & V section In the vegetable and fruit section, Madhya Pradesh’s Directorate of Horticulture showcased

some impressive varieties of vegetables like brinjal and potato produced by progressive farmers. Among them was a giant-size blue brinjal (round variety) produced by a farmer in Divlakheri village in Hoshangabad district and large Hunsona variety potato grown by another farmer of Jalalkheri village in Ujjain.

The Northeast Regional Agricultural Marketing Corporation (NERMAC) gave a good display of horticulture products from the north-eastern states. They included dried King Chilli (most pungent) from Nagaland, fresh strawberries, kiwi fruit juice, and many other value added products.

Choice varieties of fruits, vegetables and processed food products were also on display at the pavilions of Haryana and Punjab, where farmers are reaping the benefits of Horticulture Mission’s programmes. Among the items at Haryana pavilion attracting visitors’ attention were cherry tomatoes, looking specially small as they were kept near bigger fruits of the same family.

Haryana officials distributed to interested visitors, specially farmers, pamphlets giving elaborate information on how to grow vegetables like potato, tomato, brinjal, ladies’ finger, cabbage and cauliflower. These pamphlets carried details like types of soil needed, water requirements, time of sowing and harvesting and application of nutrients..

Similar guides to farmers for growing

Rajasthan exhibited not only its fruits and vegetables but also medicinal and aromatic crops like Sonamukhi, Aswagandha,, which are processed and exported as well. An official explained that Rajasthan is a leading spices producer, accounting for 68 per cent of the country’s production of coriander, 39 per cent of cumin, 89 per cent of fenugreek and 24 per cent of garlic. Europe and south Asia are major markets for the spices produced and processed in Rajasthan.

There were many other attractions as well at the expo — nurseries offering a variety of plants, farm machinery and equipment, organic food and so on.

Jain Irrigation, in its pavilion, carried a good slogan: “More crop per drop”, emphasizing the importance of water saving techniques like drip irrigation and sprinklers. Its new introduction is solar powered. drip irrigation system. The company is manufacturing also solar panels and accessories required for solar pumping systems.

As principal sponsors of the event, National Horticulture Mission, Horticulture Mission for North-eastern and Himalayan States and National Horticulture Board put up their pavilions which provided information on their activities to promote horticulture. APEDA was also prominently present and it sought to highlight its role in export promotion.

Overall, it was a grand show. Regular visitors to the expo series said in one voice

vegetables round the year were also available at the Delhi pavilion.

that the event has been growing from strength to strength every year, ably serving the cause of horticulture development which has high potential to augment income and employment. n

Aromatic crops The Directorate

of

Horticulture

of

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News

AgriTech India March 2012

Lahore hosts Dawn Agri Expo

NSAI holds 3rd Indian National Seed Congress

Technology adoptions can bring crop improvements, says Dr Niebur

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he two-day Dawn Agri-Expo was held in Lahore on 17 and 18 February, 2012 in which, thousands of farmers, academia, corporate leaders, foreign dignitaries, policy makers and diplomats took part.

First Day Inaugurated by Chief Minister of Punjab (Pakistan) Shahbaz Sharif, the expo included a conference on “Agricultural Competitiveness through Value Addition”.

His excellencies Pierre Mayaudon, deputy head of European Union Delegation to Pakistan and US Charge d’ Affaires, ambassador Richard Hoagland and Consul General Nina Maria Fite were among those who visited the exhibition and attended the conference.

The two-day national agriculture exposition provides exhibitors with an opportunity to showcase for Pakistani farmers and agribusinesspeople agricultural technology that can increase crop yields and reduce costs.

Addressing the conference, Chief Minister Shahbaz Sharif said that there was hardly any doubt that Pakistan’s economy in general and the Punjab in particular has agricultural base.

“No policy maker can ignore this sector, given its importance in national scheme of things.”

He regretted that the neglect of this sector in the last six decades has brought Pakistan poverty, militancy and terrorism. He said the world was ready to help Pakistan build agroindustry, and now it was entirely up to us to accept it and integrate with international community.

The chief minister said the Punjab government would look forward to the recommendations of this conference to set its future agenda and priorities.

His Excellency Pierre Mayaudon, deputy head of the European Union Delegation, advised Pakistan to improve quality of its produce if it wanted to claim its share in international market, especially the European Union. The EU was there to help Pakistan in achieving those standards.

Amber Haroon Saigol, head of the Dawn Media Group, in her address maintained that Pakistan has all the necessary prerequisites to be a leading agrarian economy. Modern practices and technology worldwide have greatly contributed to progress in agriculture.

She said hit by recent floods, Pakistan more than ever before needed cutting-edge technology and the latest methodologies to overcome its challenges and emerge as one of the leading agricultural economies of South Asia. “This viewed in the perspective of global challenge of food security, makes it imperative for Pakistan to realize its potential in agriculture to the fullest. To achieve this, major and meaningful investment in the agriculture sector by local and foreign stakeholders from both the private and public sectors is essential.”

With this objective in mind, she said the Dawn Media Group organized the expo and conference, arguably Pakistan’s largest and most comprehensive show. The theme

he Indian Seed Congress is the annual forum for the Indian seed industry to review its status, deliberate on issues constraining its growth and new technological advances, showcase new product line and services and network for better trade relations.

National Seed Association of India (NSAI) organized 3rd Indian National Seed Congress in Pune on 10 and 11 February, 2012. “agricultural competitiveness through value addition” sets the tone for discussions that will cover a wide range of topics pertaining to dairy, horticulture, livestock and poultry creating a road map for achieving value addition, enhancing quality of produce and product, improving export viability, deployment of new technology in addition to wide array of related topics.

David R. Brower, a prominent environmentalist, captured the essence of this conference when he said: “Bring diversity back to agriculture. That’s what makes it work in the first place.”

Addressing the conference, Engro chief Asad Umer said Pakistan should be globally competitive in the field of agriculture by 2030.

He said since most of our farmers owned small land holdings, there was a need to promote cooperative farming.

US Charge d’ Affaires, Ambassador Richard Hoagland and Lahore Consul General Nina Maria Fite opened the USA Pavilion at the expo. They had the opportunity to meet with local companies implementing US agricultural development projects and talk to Pakistani and international exhibitors showcasing new farming technologies, equipment, and practices.

Speaking on the occasion, Ambassador Hoagland said: “This event will provide farmers, dairy and livestock producers, food processors, agricultural university students, agricultural businesspeople, and consumers an opportunity to talk, exchange ideas, and learn more about new farming methods.”

He praised US-Pakistan agricultural cooperation and pledged American support for the development of Pakistan’s agricultural sector.

Second Day There was a great rush on the second day as well. People including researchers, scientists, industrialists, farmers and their leaders visited the Expo.

Leaders of farmer bodies, including the Farmers Associates of Pakistan (FAP) and the Kissan Board of Pakistan, which had also put up their stalls, also visited the exhibition and praised it as “being the first comprehensive event, showcasing latest technology and information on modern agricultural practices.”

The farmers also suggested extending such exhibitions to other major cities of the province and make them ecological zone and cropspecific. “Such general agriculture exhibitions do help raise much-needed awareness on the sector and modern technologies,” a farmer said.

The academia, belonging to the Agriculture University, Faisalabad, and the University of Veterinary and Animal Sciences was also a conspicuous visitor. They were of the opinion that agriculture, along with all sub-sectors, needed technological advance in order to realise their full potential.

“It is time for the government to create an enabling policy environment so that modern techniques become part of production in Pakistan. The world is willing to help Pakistan modernise its agriculture, horticulture and livestock. The world needs crops and animals to meet its food requirements and Pakistan has been grossly under-performing in both areas.

If technology is introduced, it would add to production, which can benefit both Pakistan and the world. Such exhibitions play a crucial role in introducing and bringing in technology,” a research scholar said.

Technical Sessions 1 Creating enabling environment for growth of Indian Seed Industry 2 Role of Indian seed industry in meeting National Food Security Needs 3 New Technologies for increasing agricultural productivity 4 Moving to the next level 5 Current challenges and road ahead Topics The list of topics covered included opportunities for SMEs in seed sector, opportunities and challenges for Indian seed companies in China, funding opportunities for Indian seed companies, and molecular breeding solutions for abiotic stress tolerance, conventional Breeding in 21st century, GM Technologies for increasing agricultural production and prospects & challenges in field crops.

Speakers The list of speakers included Ashish Bahuguna, Dr. K. V Subba Rao, Mukesh Khullar, Dr. Sudhir Goyal, Dr. S. R. Rao, Ms. Smriti Sharan and Dr. Balakrishna Pisupati, Satish Kagliwal, Ashudeep Garg, Vimal Chawda, Mukesh Khullar, among others.

Niebur’s views Dr William S. Niebur, General Manager, Pioneer China, shared his views with the industry leaders at third and fourth technical sessions. He talked with them on the urgent need to bring advanced agronomic practices, technology and land management techniques to Indian farmers in order to achieve food security for India.

Speaking on the topic “Opportunities and challenges for Indian seed companies in China” in the fourth session, Dr Niebur, said, “India has the opportunity to script a new story of innovation in agriculture”.

Neibur, who leads Pioneer Hi-Bred-China and is recognized for his extensive global experience in seed business leadership, plant genetics and biotechnology, added, “Advanced breeding technologies will continue to drive future crop improvements to substantially enhance productivity in Indian agriculture,” he added.

Niebur highlighted the role technology will play to achieve global food security. “Pioneer continues to work with farmers, in India and around the world, to ensure they have the tools necessary to produce crops that can feed their families and community. By working together, we can address the challenge of global hunger and improve food security through scientific innovation, engaging and teaching young people, and improving rural communities.”

Dr Niebur said, “We believe science is global, solutions are local. However, no one company can do this alone. We see value in creating science-based innovations that address specific local challenges through collaborating with local stakeholders.”

Present in India for over 35 years, Pioneer works closely with 2.5 million local farmers to get the right product on the right hectare to

peaking at the third Indian Seed Congress, Abhijit Sen, Member (Agriculture), Planning Commission said that The 12th Plan, which will be submitted in April, 2012, will set a target of 4 per cent for farm growth. “The agricultural growth in the 9th and 10th Plans had been nearly 2.5 per cent, while the 11th Plan which ends this March was expected to achieve a growth of 3.3-3.5 per cent,” he said.

He added that in the 12th Plan, our first goal is to make sure that the target of 4 per cent is achieved. The 11th Plan made basic

architectural shift in the way the Union Government reads agriculture. “The Centre’s role in decision to spend has been devolved to the States to the tune of over 60 per cent,” he said.

K.V. Subbarao, President, National Seed Association of India, said, “Food production had to be doubled by 2015 to meet increasing demand”. He added that measures like a seed regulation regime and uniform implementation across States should be used to give a boost to the Rs 9,000-crore seed industry.

Bejo Sheetal Seeds chairman wins Lifetime Achievement Award

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uresh Onkardas Agrawal, FounderChairman of Bejo Sheetal Seeds Pvt Ltd (Jalna), was honoured with the Life Time Achievement award in Indian Seed congress, Pune.

National seed Association of India gave this award to Agrawal for his outstanding contribution to hybrid vegetable seed industry. The citation praised him for being a visionary who guided his enterprise to blossom into a leading vegetable seed company engaged in research, production, marketing and export of hybrid vegetable seeds.

Apart from forming a JV with Holland’s Bejo Zaden, he also introduced many agro-biotech products in association with many national and international research institutes. He also founded a bio-science foundation, an NGO for research and training with Michigan State University, US. His Bejo Sheetal has developed nearly 700 hybrids of major tropical crops. The onion hybrid won him a “Lifetime Achievement Award for Onion Development” from Directorate of Onion and Garlic Research, ICAR. Referring to acceptance of biotech crops, Dr. Niebur said, “Global adoption of biotech crop technology continues to grow and I am happy to note that developing countries are taking a lead in this.” He referred to annual biotech crop report released by ISAAA (International Service for the Acquisition of Agri-biotech Applications), which mentioned that in developing countries adoption of biotechnology was happening at nearly twice the pace of more developed nations.

Dr Niebur pointed to additional projects of Pioneer which were underway, involving technology to deliver drought-tolerant seeds to local farmers across the globe. These new seeds will improve productivity and efficiency of water usage across many different crops and regions, he informed.

Pioneer began research and parent seed operations in India in 1970, thereby developing and characterizing hybrid seed for farmers, while continuing to be one of the leading suppliers of improved seed varieties in the nation. Products developed and sold

by Pioneer in India include hybrid rice, corn, cotton, pearl millet, sunflower, and mustard.

New hybrid launches are the result of rigorous localized breeding and testing that helps ensure Pioneer meets customers’ needs on a field-byfield basis. The company also strives to educate and train farmers on the scientific methods of cultivation, right agronomic practices and crop management techniques to improve yields and profitability during the post and pre season.

Neibur also spoke on “Conventional Breeding in 21st century” in the 3rd session.

Ramesh denies NGO’s role in Bt Brinjal moratorium

12th Plan aims 4 per cent farm growth

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maximize their productivity and profitability, having 15 production locations covering more than 45,000 acres and involving over 22,000 growers. Dr Niebur, added, “Pioneer is committed to delivering superior, high-yielding hybrids and helping to improve agronomic practices at the farm-level. Education, training and support to ensure adoption of improved farm management practices are critical to India’s agriculture prosperity. The country’s first Green Revolution is widely read and discussed and it is time India made a second giant leap by making advances and embracing improved technologies in agriculture.”

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nion Minister Jairam Ramesh categorically denied that an NGO played an influencing role in his decision to put a moratorium on Bt Brinjal. His statement is important as PM himself has recently said that foreign funded NGOs played roles to block the use of genetically engineered foods in India.

The Minister said, “I did not ban Bt Brinjal. I decided to put moratorium only. Let’s fulfill all the four conditions and then revisit the whole issue”. These four conditions are: position of

the state governments, the lack of consensus among the scientific community, the fact that tests were not completed and that there was no independent professional mechanism which will instill confidence among the people.

Accusing a foreign funded NGO, Ramesh said, “Green Peace, a foreign funded NGO, accused me of propagating the line of Monsanto during a public hearing in Bangalore. So on Bt Brinjal, since I was directly involved, I can confidently say no NGOs influenced my views”.

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AgriTech India March 2012

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PM promises greater outlay for research a safety net for the poor and also a powerful instrument for undertaking works that will enhance land productivity. We launched the Rashtriya Krishi Vikas Yojana and the Rainfed Areas Development Programme.

Farm achievements These policies have begun to pay off.

We have reached new plateaus in foodgrain production. Food production at the end of the 11th Plan will exceed 250 million tonnes, an all time record. Our pulse production, at 18 million tonnes, is well about the previous barrier of 15 million tonnes. We are producing today more milk, more fruits, more vegetables, more sugarcane, more oilseeds and more cotton than ever before. Last year production of vegetables went up by 9.57 per cent and nearly 2 million tonnes of cold storage capacity was created.

It now looks as if agricultural growth is likely to be about 3.5 per cent per annum during the 11th Five Year Plan which is much better than in the 10th Five Year Plan. This is a commendable achievement but we must improve upon it in the Twelfth Plan to reach 4 percent growth or even higher. This will call for very determined effort on the part of both the central government and the state governments ranging over many areas including investment in irrigation, investment in watershed management, provision of credit, provision of marketing support etc. One of the key elements in that effort must be the contribution of agricultural research and I would like to use this opportunity to focus on this area.

System failure I am aware that at any given time there is a gap between the yield per hectare that is observed in the field and the yields that can be achieved under ideal farming conditions.

That difference is quite substantial at present and it represents the failure of the system to exploit the yield potential which our scientists have given us. In the short run it is the job of the administration to close this gap and our agricultural strategy must give high priority to this effort. This is not the job of research scientists but it does involve close collaboration between our scientific and technical manpower and the administration on the ground. We must do better in this area than we have done thus far.

One of our major concerns has been the worry that our extension services system is no longer sufficiently robust. The First Green Revolution was carried out on the back of an effective rural extension and research infrastructure. The joining of hands between panchayats, rural agricultural staff, agricultural scientists and district level officials created the foundation of a robust extension services system. The Indian Agricultural Research Institute and state level institutions were very much a part of this system.

Agriculture Technology We need now to revitalise this infrastructure of support at the district level. The Krishi Vigyan Kendras which now cover virtually the entire length and breadth of the country and Agricultural Technology Management Agencies (ATMA) have to play a major role in this process of revitalization and transformation of extension network.

Looking beyond the application of known technology, our farm economy needs much greater injection of science and a knowledgebased approach to increasing incomes and productivity. Both land and water are limited and it is vital that we make progress in agricultural technology which raises land productivity while also allowing a significant reduction in water use per unit of agricultural output. We need to develop varieties which can ensure high yield while economising on water and are also capable of withstanding water stress. This is as true of crop production as for livestock. We need to develop improved breeds which can flourish in our agro climatic conditions and do not require high value inputs which our farmers cannot afford.

No resting on laurels This depends critically upon the health and vitality of our agricultural research system, focusing on the ICAR system and state agricultural universities. We owe a great deal to our scientists for what we have achieved in the past. It is due to the dedicated work of our agricultural scientists that we were able to overcome those constraints. I am very happy that Dr. M.S. Swaminathan, the father of the Green Revolution in our country, is very much present here. But we should not rest on our laurels. We have a long way to go down this road if we want to assure our farmers of prosperity from the fruits of the land they till.

Future Plans The National Agricultural Research System needs to be further strengthened to meet the challenges of the years ahead. One requirement of this is the adequacy of financial resources.

Our Government is committed to raising R&D spending as a whole to at least 2 per cent of the GDP by the end of the XII Plan from the current level of about 1 per cent. Given the importance that agriculture has in achieving our national goals, we have to ensure that a significant proportion of increased R&D spending is directed to agriculture and related activities.

Resources are only one part of the solution. I also feel our agricultural research system needs to look inward to see whether it is keeping up with developments globally. We had established two Committees to examine the system and make recommendations on how to strengthen it. One of these Committees was headed by Dr Mashelkar and the other by Dr Swaminathan.

We need to review the implementation of the

recommendations of these committees to see whether all the recommendations they made have been implemented in letter and spirit.

Research funding I am particularly keen to ensure that research funding is based on clearly defined research goals which are linked to achieving productivity increases in the field. This calls for a system which focuses on basic research at one end but also encourages a spectrum of activity translating basic research to the development of varieties that meet the needs of our farmers given the circumstances in which they have to operate and their resource constraints.

While the public sector needs to take the lead we also need much greater private sector investment and involvement in agriculture, particularly in R&D. Indeed, it is unlikely that the goal of 2 per cent of GDP in research can be achieved unless a significant part of this is financed by the private sector. Further, greater integration of the agricultural, industrial and Science and Technology sectors of our economy alone can yield large productivity gains based on new innovations and technologies.

Public- Private Partnership We need to promote structured public private partnerships, to foster better synergy among institutions and disciplines. However, for this to happen on an adequate scale, we need to expand the mode of scientific research by funding not just institutions but also research platforms that cut across institutions. Individual researchers and research groups, whether in the National Agricultural Research System, universities, CSIR, scientific establishments or the private sector, should be enabled to form platforms for joint research in key priority areas.

These should be funded subject to quality peer review. I am therefore happy that the Indian Council of Agricultural Research has proposed some extra mural funding along these lines in the 12th Plan.

Intellectual Property Regime The institutionalization of an intellectual property rights regime is important for this to happen. Not only must our scientists be rewarded for their innovative work, but an effective IPR regime will also facilitate research partnerships on the basis of sharing of costs and benefits in the larger interest of our economy and society at large. For example, the public sector has invested in a very large collection of genetic material which is of value to private seed producers. Commercial arrangements could be worked out for use of such knowledge, whose proceeds could be ploughed back into scientific research for public good.

In this context, we must never forget that linkage with farming communities is vital to enhance the efficiency and productivity of our agricultural research system. This would help to blend modern science with traditional knowledge and make the system more responsive to the felt needs of our farmers.

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Role of Women Special attention needs to be paid to the role of women in the farm sector. Women have historically been the source of much traditional knowledge. Thus special efforts have to be made to make the entire R&D chain more gender sensitive and give priority to technological options that reduce the drudgery of women working on the farm.

As we go forward, we have to keep in mind not only the increase in demand for food but the changing composition of that demand. It is estimated that we would need an addition of nearly 50 million tonnes of food grains in the next 10 years to meet domestic demand.

Increased production of foodgrains is certainly an important plank of food security and our efforts to rid the country of the scourge of malnutrition.

Nutrition But proper nutrition also requires a balanced diet. We would need to produce more fruits & vegetables and protein rich products such as milk, eggs, fish and meat. The demand for these products is expected to grow substantially with rising incomes and changing dietary habits and preferences. Therefore we have to pursue a multi-pronged strategy which seeks to boost productivity and production through product-specific interventions.

Climate Change I have already mentioned the need to deal with the threat of climate change. Climate change and rising demand for commercial energy are expected to have a significant impact on agriculture in India. Rise in energy demand and continued dependence on fossil-fuel based energy will lead to higher costs of cultivation and also lead to increased carbon emissions.

I am happy to learn that IARI has recently set up a new Centre for Environment Science and Climate Resilient Agriculture to address these issues.

Reminiscences I was a student, like many of you here, in the difficult years of the 1940s and 1950s. Times have changed and we have overcome the fears that plagued our nation at that time. But your generation faces even bigger challenges.

We achieved higher agricultural productivity through means that used water very intensively and relied heavily on chemical inputs. And we did not have a looming concern on climate change. Your generation has to tackle all these tasks. Fortunately our economy is now much stronger and we are in a position to support research much more than what we could in the past. I assure you that we will do our bit.

The glorious history of institutions such as the Indian Agricultural Research Institute, and the quality of the young minds being trained in it today shows that we have the intellectual and institutional capacity to overcome all challenges. I wish each one of you well in your chosen careers and I have no doubt that you will make a major contribution to creating the new green revolution in the years that lie ahead. May your path be blessed!

Organic inputs help paddy crop to record substantial yield -M.J. Prabu

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Kulandaisamy, who is an organic entrepreneur and owner of Tari Biotech, Thanjavur, has developed organic inputs to multiply crop output. He presented his findings which may help farmers to increase their crop yield substantially.

He said, “Increasing yield for any crop is not difficult. My newly developed Organic plus and other natural inputs can easily help a farmer increase the yield without spoiling the environment.” As the farmers are facing the multitude of problems in agriculture today, and finding it tough to get a substantial yield, and a good market, his findings is like a ray of hope for them.

Findings’ potentials Kulandaiswamy said, “My findings are not mere paper theories but practical experiments. I used my inputs in the fields of S. Ranganathan, who is General Secretary, Tamil Nadu Cauvery Delta Farmers Welfare Association and Chairman, Centre for Cauvery Delta Development at Perugavazthan village, Mannargudi. We recorded more than two tonnes of paddy from an acre.”

He readily offered 30 acres for this experiment, and during the harvest several farmers, district officials, and scientists from Tamil Nadu Agricultural University were invited see the process and results.

Good Yield While the scientists’ concern was more on how the yield increased using only organic inputs, the farmers paid attention to the number of gunny bags being filled. In fact, after the preliminary introductions and explanations,

the eager farmers expressed their astonishment and happiness to learn that the paddy yield recorded a fair increase.

Ranganathan said that so far, for the last several years I could harvest 1 to 1.75 tonnes of grains from an acre. But after applying Kulandaisamy’s inputs, I managed to harvest nearly 2.43 tonnes from same area. “It is 400 kg more than the usual yield,” he said happily. He also agreed that the cultivation cost also scaled down.

First time Being a conventional farmer all these years, Ranganathan’s experience in organic agriculture, according to him, was not noteworthy. He says that the media’s role in highlighting the awareness and importance of going organic urged him to try it.

H adds that even now I am skeptical as to how the entire country can afford organic inputs, especially with dwindling land and cattle resources.

“But personally I am convinced and am planning to increase my acreage in the coming years to check whether it is sustainable. I always believe that organic farming is for health, and chemicals for greater production,” he said.

Many farmers who attended the harvest programme think the Government must make such practices popular in other areas of the state also.

Need of the time Ganesan, from Tirukatupalli village, said, ‘As a farmer in the delta region growing paddy all my life, this is just what I need. Today for an acre of chemicals I need to spend anything

between Rs. 2,500 to Rs. 3,000 as input cost alone. In addition, the labour shortage and low price makes it practically impossible for me to break even.

But Kulandaisamy’s input for an acre costs Rs. 800 to Rs. 1,000 and I can hope to save some amount on the input”.

According to Kulandaisamy, not only paddy but any crop can be grown well using this organic plus input.

He explained further, “If farmers are able to follow my suggestion dedicatedly then I can assure that their yield can be increased.

Those interested can visit my farm, factory at Thanjavur to see and get convinced personally.”

University support The Vice Chancellor of the Tamil Nadu Agricultural University Dr. P. Murugesa Boopathi expressed surprise on the yield increase and promised to help Kulandaisamy.

“It is the duty of the University and our

scientists to motivate such persons,” he said.

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AgriTech India March 2012

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‘For me, quality has been the top priority ‘There is massive growth potential in since the beginning’ agricultural equipment industry’ Agricultural spare parts and spring industry is as important as the agricultural equipment industry itself. The spare parts industry was occupied with many big players when Sanjay Sharma left his job and established Mahadev Agro Spring Industry to manufacture and sell springs and spare parts for agricultural equipments.

Driven with a passion to excel and using ‘Quality’ as his motto, he grew in stature very fast. He is also the Managing Partner.

Agritech Newspaper reporter Naveen Grover met him at his Karnal (Haryana) office and tried to know his company’s business strength and industry scenario among other things. Excerpts: When did you start this company and what are your products?

I was doing a job before establishing this company in 2007-8. Since I was a new player and the field of agro spring and spare parts industry was full of big and seasoned players, I decided to remain fearless and took ‘quality must be the top priority’ as my motto which is still with me and will always be.

We make spare parts and springs for the agricultural equipments including rotary tillers, spring loaded tillers, levelers, laser guided land levelers and cultivators What is the present industry scenario?

There is an impressive growth in our field. I see 10 to 15 per cent growth in coming years. A lot of opportunities exist and there is scope for all players who can deliver quality at reasonable cost.

Are you using imported machinery to manufacture your products?

We are using Indian machinery to manufacture our products. Since we buy raw material from only two reputed companies (Tata Steel and Usha Martin Ltd), we deliver the best quality products and also at reasonable cost.

Sanjay Sharma

priority’. After returning I started doing paper works to get clearances for export. We will soon do it. There is a great export opportunity in western and African countries.

What are your local markets?

We supply to a dozen states including Maharashtra, Tamil Nadu, Andhra Pradesh, West Bengal, Rajasthan, UP and Punjab. And I think covering 12 states in just four years is praiseworthy for a new player like me. And I succeeded due to my motto.

Since there is a lot of rate fluctuation in this industry, how do you handle that?

Rate fluctuation is a major issue in this field and we have to deal with it. It affects sale.

A couple of years back many manufacturers suffered losses due to sudden price boom of the raw materials. And some players were wiped out from the market. Although I was a new player, I managed to survive due my ‘Quality’ motto. I think the government should do something to protect us from this terrible phenomenon.

Do you get some government support?

Government does not give subsidy to spare parts manufacturers. They help only mainline manufacturers of equipments and give subsidy to farmers to procure these equipments. But since there is no tax in our field in Haryana, it is good for us. We do more business.

Do you face any problem as it is highly competitive market?

Competition exists everywhere and we do not have to bother about that. Since I established this company with QUALITY as motto, it soon grew in strength and began to compete with the best players of the industry. Customers cannot ignore quality. They willingly pay a little more to avoid post purchase worries. If the price of a tiller is Rs. 15,000, buying a spring for Rs.150 for it cannot be an issue.

Do you export also?

No, we do not export but we are trying to do it, and I was surer after visiting a fair in Germany last year where I noticed that the quality of my spring and spare parts is better than those of European manufacturers. It boosted my self confidence and gave further strength to my motto ‘quality must be the top

What is your expectation from the markets and your future plans?

There is a growth in the industry. As I said I foresee 10 to 15 per cent growth. There is usually great surge of demand, but this year buyers are silent. This is quite disturbing for the industry.

Buyers are not placing orders like they usually do. But we can hope only the best.

ITC uses e-Choupal for personalized crop management

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virtual freeze on the expansion of e-Choupals since 2007 seems to have encouraged ITC to discover new anchor businesses to insulate its existing e-Choupal model and garner additional sources of revenues.

The rolling back of certain reforms in APMC (Agriculture Produce Marketing Committee) and Essential Commodities Act by the Government in 2007, in its bid to contain wholesale price inflation, had brought a virtual halt in the expansion plans of e-Choupals in the country, said S. Sivakumar, Chief ExecutiveAgri Businesses, ITC Ltd. e-Choupal originated with the idea of making Indian agriculture self-sufficient by leveraging digital technology and customised extension services to empower farmers and raise rural incomes.

“The e-Choupal initiative was launched in 2000 and by 2007 we had 6,500 e-Choupals empowering four million farmers in 40,000 villages. However, in 2007, Government reimposed restrictions on commodity sourcing.

So further expansion of e-Choupals came to a halt,” Sivakumar said.

Personalised services ITC plans to broad-base the e-Choupal model to discover new anchor businesses to

insulate its existing e-Choupal model from risks of reversal in Government’s agri reforms.

The company is in the process of rolling out e-Choupal’s Version 3.0, under which it plans to offer personalised crop management advisory services to individual farmers.

“The version 3.0 will not displace the Version 1 and 2 of e-Choupa. Instead, it will be built on the foundation of the earlier versions.

Through version 3.0, we want to broad base the anchor of e-Choupal beyond commodities sourcing. We are gearing up e-Choupals as rural employment exchanges, which will connect the rural youth with jobs through our ‘Rozgaarduniya’ initiative,” Sivakumar said.

This would eventually also help provide skills to increase the employability of rural youth. This apart, the company would also look at providing marketing services activity through ‘Choupal Haat’. “Some of the concepts have already scaled up while some are in the pilot stage,” he said.

By personalising its relationship with farmers under e-Choupal’s version 3.0, the company would be able to increase its reach by encompassing more number of farmers within the existing network area.

“These concepts are built keeping in mind ITC’s triple bottom-line, therefore sustainability is in built in the system,” he pointed out.

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Champion Agro Industries (Tirupati Udyog) is a reputed name in agricultural farm equipment and agricultural implements. The company came to the forefront of agricultural equipment industry due to its large scale manufacturing capacity and reasonable prices. It is a professionally managed leading manufacturer and exporter of agricultural farm equipments like spring loaded tiller, disc ploughs, offset disc harrow, mounted disc harrow and Prem sharma speeding attachment.

The manufacturing company wants to mechanize the agricultural sector by providing the farming community with tools and equipment that will help them speed up the agricultural processes at less costs and achieve high yield.

Its products have made a distinct mark due to their simple design and easy to use applications. Agritech Newspaper reporter Naveen Grover met its Managing Director Prem sharma at his Karnal, Haryana-located office to know the company’s present business situations and future plans. Edited Excerpt: When did you start this company and what are your products?

We started in 1980 with Cultivator Tynes. At that time, the production was 500 units per day. At present we are producing 2500 units per day. Then we started spring manufacturing. Initially the spring production was 200 units per day. Then we began forging unit. In 1991, we started to manufacture disc ploughs and mould board ploughs. We are also manufacturing agricultural equipments as well implement such as seed cum fertilizer, mould board plough, leveller, chagglers, trailing harrow, cultivators rigid, cultivators spring loaded and scrappers.

What is present scenario in the industry?

There is a lot of growth potential in the agricultural equipment industry in the country.

We are producing new technologies to help farmers to achieve high yield with minimum cost. We are producing multi user implements to ease the labours’ problems. There is great opportunity for the entrepreneurs in this field.

Are you using imported machinery to manufacture your products?

Currently we are using Indian machinery to manufacture our equipments. In future we may use imported CNC machinery.

Do you get some government support?

Yes, we are getting government support.

And it is necessary also as our efforts are strengthening farming sector.

Do you export also?

At present we exporting indirectly, but in future we will try to do it directly to countries like South Africa and Sri Lanka.

Since there is a lot of rate fluctuation in this industry, how do you handle that?

Yes, there is fluctuation and it certainly affects all industry players and their products.

But the sellers and buyers show a sense of commitment as we have to remain united for our mutual benefits. There are times when we face losses but then it is a part of this business.

Do you face competition?

Competition is everywhere. We have to deal with that. We face problems but we have to remain competitive to remain in the business. In fact it is very big in this field and I think it is good also as buyers get the benefits like good quality products at reasonable prices.

Competition is necessary for every business.

What are your future plans?

We believe in the planned future. We do research and talk to the customers to know what they may need and accordingly we plan to produce desired products. Our future products are rotavator, laser land leveller. We always keep in mind the multi-user factor while designing our products.

Any last word?

Market is growing very fast and we need to keep pace with it.

‘Since farm equipment industry is related to food, it will only grow’ Vishal Udyog is a group of talented, experienced and committed people. The company has been manufacturing quality tractor driven soil preparation agriculture implements for 22 years. It give greater emphasis on various operating aspects of business like designing, production, purchase, marketing, service and management to provide the best and most economical products to customers under the brand name VIKING. J.S. Lather Agritech Newspaper reporter Naveen Grover met its Managing Director J.S. Lather at his Karnal (Haryana) office and tried to know his views about the industry and his future plans among such other things. Excerpts: When did you start this company and what are your products?

We started in September 2009 with soil preparation implements like rotavator, leveler, harrow and MB plough. Currently we are making most of the implements that are attached with a tractor for farming work.

What is the present industry scenario?

The industry is growing at a fast speed and there is a great demand at present which will only grow in coming years. Since this industry is related to food, it is bound to grow. People cannot stop eating food and we need to help farmers to increase their yield to feed ever increasing population in the country.

Are you using imported machinery to manufacture your products?

We are using a mix of Indian and imported machinery to manufacture our implements. We also use globally acclaimed CNC machinery which gives the finest quality. The imported machines are expensive but they add quality and output speed is also impressive.

Do you get some government support?

We get little government support. To avail a subsidy is a horrendous task due to red tape and a lot of paper work and getting clearances from various departments. So, it is quite discouraging to get a subsidy. The government should have a single window process for us and the process should be fast and efficient.

Do you export also?

Yes, we export to several countries including Niger, Nigeria, Ghana, Myanmar, Sri

Lanka, Congo and Nepal. We have distributors there to handle our work.

Since there is a lot of rate fluctuation in this industry, how do you handle that?

This is a major problem in this sector and it gives us a lot of things to worry. Some time back due to iron price fluctuations, we faced losses. Due to fluctuations of raw materials, the profit margins become thin often.

Do you face any problem as it is highly competitive market?

The competition is everywhere and it is good for the customers. It keeps us on the edge and we need to produce brilliant products to remain at the top. Competition also affects prices and customers get the benefits. In Punjab, farmers have been using four to five implements with their tractors wile in UP and Bihar they are using only two. So, we have to know which are big or small markets and plan accordingly. But for us, competition doesn’t make much difference.

What is your expectation from the markets and your future plans?

Currently the market is being occupied by two types of players. One is making advanced implements while the other is focusing on ordinary implements. And I think there should be a fine difference between two markets. I foresee a great future for my company and this industry. There is ample opportunity for new players also as the demands are increasing.

We aim to expand by 4 per cent in future.

This year, long winter chill has affected our sales but we see a lot of growth in the market.

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Business Pages

AgriTech India March 2012

BUSINESS PAGES (free of cost) Manjushree Plantations Ltd.

14th Floor, A-Wing, Mittal Towers, M.G. Road, Bangalore Tel.: 0472-3204455, Fax: 0472-2804073 Email: ramki@agropharma.com Web.: www.ryncoorchids.com Products: Orchids Production Contact Person: S. Ramakrishnan, MD

4 Fresh Retail Private Limited

1, Empire Plaza, Empire Estate, MG Road, Sultanpur, New Delhi-110030 Phone: 09999083764 E-mail: info@4fresh.in Website: www.4fresh.in Contact Person: Rajiv Chugh,CEO

Chirantana Equipack Pvt Ltd

C-94, 4th Main, 2nd Stage, Peenya Industrial Estate, Bangalore - 560058, Karnataka, India.

Phone: +9180-28367834, +9178298-22088, Fax: +9180-28367834, E-mail: info@chirantana.net Website: www.chirantanaequipack.com Contact Person: Girish B Kamath, Director

Agro Commercial

8A, Camac Street, 25 B, Camac Street, Kolkata700016, West Bengal, Kolkata Phone: +91 33 65330244/22874206, Fax: +91 33 22867304 E-mail: info@agrocom.in Web.: www.agrocom.in Products: Manufacturers of Tractor implements i.e. 4 Hole Pit Digger etc.

Contact Person: S. Agerwala, Proprietor

Automat Industries Private Limited

18 - 19, Dilshad Garden, G.T. Road, New Delhi - 110095 (India), Phone: 011 - 43099800- 03, Fax: +91 - 11 - 4309 9807 E-mail: contactus@automatworld.com Web.: automatworld.com Products: ISI marked products - metal sprinklers (harit), plastic sprinklers (saaras), mini sprinklers, water guns (penguin & pelican), plastic screen & disc filters etc. implements i.e. 4 Hole Pit Digger etc.

Contact Person: Vipul Jain, National Sales Manager

Large-scale commercial farming in Africa – Rana Kapoor (Founder, Managing Director and CEO of YES Bank Ltd.)

F

rom the beginning of 2004, Ethiopia has witnessed a flurry of investments from all parts of the world into their farmlands.

Come 2011, land deals are already in place for 5,28,000 hectares, of which according to the Government of Ethiopia, 3,07,000 hectares of land have already been transferred to both foreign and domestic investors.

With the spur in foreign investments both in infrastructure and land banks, and a growing domestic economy, Ethiopia is today amongst one of the fastest growing economies in Africa.

Encouraged by the attractive investment climate, Indian companies have committed investment amounting to $4.4 billion out of which 40 per cent is for commercial agriculture.

Investors ranging from Karuturi Global to conglomerates such as Emami, Shapoorji Pallonji & Co. etc. have acquired huge fertile tracts of land for initiating large scale commercial farming.

Ethiopia is not a one off case. Since the beginning of 2000, there has been a rising global interest in farmlands.

This has been fuelled by the volatility in commodity prices globally, growing human and environmental pressures, and worries about food security due to the rising demand for biofuels.

According to the FAO estimates, the global food demand will increase by 70 per cent in 2050, in order to feed an estimated global population of 9.3 billion. There is rising interest in large-scale commercial farming opportunities, especially in the developing economies such as India where concerns on food security are further aggravated by stagnating yields and an increasing population.

Compared to an average annual expansion of global agricultural land of less than four million hectares before 2008, approximately 56 million hectares worth of large-scale farmland deals were announced even before the end of 2009. More than 70 percent of such demands have been in Africa; countries such as Ethiopia, Mozambique, and Sudan have transferred millions of hectares to investors in recent years.

Why Africa?

Africa offers immense opportunity in terms of investment in large-scale commercial farming. The main reasons are: Availability of huge tracts of contiguous fertile land at modest prices Land prices in Africa are much lower than those in India.

For instance, the land lease rate in Punjab’s Doaba region is a minimum of Rs. 40,000 for an acre whereas the average land lease rates in Africa (in rupee equivalent terms) comes to around Rs 700/acre.

Due to the large size of the farms, it becomes much easier to go for mechanised farming in such plots, thereby, increasing farm efficiency, and administrative hassles of people management in a foreign land.

Gap in the potential and actual yields in Africa, thereby, providing a huge scope for further interventions (in terms of better seeds and improved farm technology).

Availability of labour at cheaper rates as compared to developing nations, therefore, having a direct implication on cost of production.

According to studies, the cost of agriculture production in Africa is almost half as compared to India. There is a lower requirement for agricultural inputs and labour is cheap, thereby, significantly reducing the cost of production.

Proximity of some of the African nations to West Asia, EU and the US, thereby, reducing freight costs and increasing cost competitiveness.

Africa is perhaps the world’s largest importer of rice, wheat, sugar, maize, soyabean and other staples. There is, therefore, a ready domestic market which is available for whatever is produced on these farms.

Pull Factors Additionally there are strong “pull” factors for an Indian promoter investing in Africa notably.

The list includes liberalised norms of Governments of most of African nations for allocation of land to Indian investors, limited

bureaucratic hurdles, additional incentives such as duty-free imports, zero duty on exports and easy repatriation of profits.

Support from the Indian Government in terms of lending financial support through EXIM Bank, double taxation (avoidance) agreements (DTAs) and other bilateral trade agreements.

The land parcels are offered at competitive prices on lease hold which run from a minimum of 20 years to a maximum of up to 99 years.

Investment A foreign investor needs a minimum capital investment of $50,000-1, 00,000 (varies on a country-to-country basis). On an average, of the

total project cost, almost 60 percent is on fixed asset, 30-35 per cent on pre-production (development) and about 6-10 per cent for working capital.

The returns from investments are more strategic from the long term point of view as most of the investment initially goes for asset creation.

These African ventures have a pay-back period of 7-8 years with a projected IRR of about 18-21 per cent and above, over a 10-year time span.

Capital infusion is required initially for a period of first 5-6 years after which the project becomes self sustainable. Funding up to the extent of 70 per cent of project cost can be availed from different Developmental Banks in Africa. Ideally

to start off an individual (propriety concern) or an organisation needs to scan the different land banks in Africa based on certain criteria such as agroclimatic condition, soil, socio-economic-political situation, trade treaties and benefits etc.

Conduct surveys and studies such as environment impact study, topography, land quality assessment, logistical costs etc.

Take a decision on country-crop mix; risk assessment and risk profiling; preparation of detailed project report; completion of different Government formalities such as discussion of terms of agreement (MoU) etc. and the final implementation on ground.

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News

AgriTech India March 2012

Zuari Group to transform Indian agriculture I

n many parts of the country, thousands of farmers are getting benefits from various initiatives started by Zuari Group. It is playing a silent but very crucial role in transforming Indian farming sector.

Zuari Industries Ltd is a part of Adventz Group, which has several verticals across agribusiness, engineering and infrastructure, emerging lifestyles and services. Its agribusiness group includes Gobind Sugar Mill Ltd, Zuari Maroc Phosphates Ltd, Zuari fertilizers and Chemicals Ltd, Zuari Seeds Ltd, Zuari Holdings Ltd, Zuari Industrries Ltd, Zuari Phosphates Ltd and Zuari Rotem Speciality Fertilisers Ltd. Zuari’s impressive success in the fertilizer sector is attributed to its global sourcing. Now the company is globally famous in sourcing fertilizer. This includes backward integration, finalizing long-term supply contracts and relentlessly trying to become the leading player in the country. It has already become India’s top sourcer of agri-inputs and fertilizers. Its recent partnership with Mitsubishi Corporation of Japan, MCA Phosphates Pte Ltd has enabled it to get its hands on 30 per cent stake in Fosfatos del Pacifico of Peru.

Zuari Rotem Speciality Fertilizers Ltd, which is a JV between Zuari and ICL (Israeli Chemicals Ltd), is currently producing nearly 32,000 tonnes soluble fertilizers per year at its Maharashtra-based plant.

Zuari is perhaps the only company, which is seriously working to organize agri sector in India, and provide better soil management solutions to the farmers. It has started several initiatives to reach the farmers and remove their problems by providing expert guidelines and materials. Its work indicates its genuine commitment to mitigate farmers’ problems and make them self –reliant.

Farmer-friendly schemes It has opened an Agri Park (100 acre) in Sholapaur (Maharashtra) to teach farmers and professionals related to agriculture the best practices in the farming sector. This has certainly helped them to increase their outputs and manage it in a profitable way.

The park’s main works are centered on farm nutrients, soil management, farmer training and intelligent use and harvesting of water.

Its customer relationship initiative “Jai Kisan Sangam” is also aimed to solidify its connection with farmers. It also organizes rural sports to provide much needed opportunities to them to excel in various sports and rejuvenate their body and mind.

Other community-based programmes include ‘Jai Kisaan Junction’ and “Jai Kisaan Krishi Sevaks” .These grass-root initiatives have helped farmers to learn a lot about meaningful

E

stablished in 1967, Speedways Group of companies has established itself as one of the leaders in Manufacturing of Farm Radial / Cross Ply, Two Wheeler, Three Wheeler, Light Truck & Truck Tyres, Tubes & Flaps.

Having already created an unshakeable niche for itself in the domestic market, the speedways Group of Companies is now all set to make its presence felt in International Markets. All this has been possible only because of the group’s commitment to quality, regardless of the costs involved. To this end Speedways Group of Companies has always enforced the most stringent quality standards in its manufacturing unit as well as its laboratory.

Every possible effort has been made to make use of latest technology and the most sophisticated equipment to ensure that the customer is given the maximum value of money.

Today the company has its presence in more then 60 countries in the world. Also the companies has won several Special Export Awards for their outstanding performance in the exports.

CEO MESSAGE At Speedways, we are ready to meet your most demanding expectations. With products that meet world class standards. Whether it is on the shop floor or on the highway.

For us the customer is the first priority.

Which is why we are expending our retail network to reach out to every part of India and abroad with high performaning tyres.

farming methods. “Jai Kisaan Junction” is a single window point where farmers can come to take fertilizers, other agri-tools and useful advises from the agricultural experts. Not only this, the Group also started in 1985 an award “Krishi Samrat” to motivate them to excel in their field.

Its journey and vision Zuari Industries Limited began its humble journey in 1967 from Goa. Then, it had one fertilizer plant which produced several kinds of fertilizer. Its business share grew rapidly due to the use of innovative and farm-friendly strategies. It along with its associate company Pradeep Phosphate Ltd PPL) spread its arms all over the country, and soon became the largest fertilizer player. PPL’s Navratna brands like Dap and NPKs are also registering impressive growth in the various domestic markets.

The group reported high sales growth and popularity in the country by increasing its Jai Kisaan activities. The intelligent use of communication and top-class products and services transformed its fate within a short span of time. Very speedily, it grew its footprints in several states like Maharashtra, Goa, Gujarat, Kerala and AP. Its high class agri-inputs and fertilizers made it a household name.

The credit of this astonishing success should go to the Group’s policy and decision makers who showed their in-depth understanding of the Indian agriculture and its weaknesses and strengths. They made the Group committed to give total farming solutions to the farmers and provide them with everything they need to protect their crops and increase soil’s strength.

Transformation of ZIL from a minor player to a behemoth in the fields such as fertilizers, agri-inputs, pesticides, micro-nutrients and hybrid seeds can be attributed to its aggressive portfolio management and market expansion.

The biggest integrated agricultural service provider of India now aims to organize this unorganized sector to help farmers regain their pride.

In fact, it was the long-term vision of Dr KK Birla which has transformed the Zuari Group into a powerful pillar having diverse interests in various agri-business fields. Through collaboration, inclusiveness, sustainability and global outlook, the group made tremendous progress in not so long time. It has an envious pool of highly talented and motivated personnel serving passionately for the industry with a social conscience.

Chairman of Adventz Group, Saroj Kumar Poddar feels that repositioning the group under a unified banner (Adventz) has certainly helped the two groups to pursue their interests with a new vigour and passion.

Speedways is the perfect amalgam of a highly skilled workforce working with state –of-theart technology at one of India’s most advanced infrastructures.

We will strive to continue to serve our customers to the best of our ability.

A reputation of enduring excellence, an universally admired quality standard, and an enviable position of a leader; these are all nut the results of a commitments that precedes any other priorities.

Located at Suchi Pind, Bye Pass, G.T.Road, Jalandhar. The manufacturing plant is a perfect example of sophisticated technology and a skilled workforce working hand in hand. The most modern machinery imported from Taiwan gives Speedways the technological edge required to maintain its current reputation for excellence. From Automatic Tyre building machines to the latest Bagomatic machines for Automobile Tyres. The plant is well equipped with the best infrastructural back up. A highly qualified and well –trained work force further adds to the efficiency and productivity of the plant.

A laboratory equipped with the latest instrumentation like Rheometers ensures that the most stringent quality standards an enforced.

Furthermore in –house inspections by quality inspectors of internationally accredited agencies guarantee that no compromise on quality is ever made.

The plant is a benchmark in excellence, the result of complete synchronization between men and machines. Ever setting standards to create new traditions in quality and value. www.speedwaystyres.com

11

Pradeep Phosphates wins ‘Krishi Visharad’ award

O

disha Chief Minister Naveen Patnaik honoured Bhubaneshwar-based Pradeep Phosphates Ltd with the prestigious PPL Annual ‘Krishi Virshad’ award recently. The award was given in recognition of PPL’s relentless pursuit of becoming a farmer-friendly company, and to help the state in achieving its farming targets.

PPL has done many remarkable works in the field of soil management and fertilizer development. Recently, it has opened its own soil-testing laboratory in the state’s capital.

The list of facilities included soil analysis and analyzing macro and micro nutrients for the better farming application. It has also developed farm-friendly software ‘Vasundhara’ to achieve this purpose.

Apart from this, it also runs half a dozen soil testing mobile vans across the state. For this, it receives active support from the government.

The farmers get the ‘soil health card’ to know

what kind of soil they have in their farmland, and what must be done to make it more fertile.

According to a rough estimate, around 50,000 farmers are getting these benefits.

The company produces nearly 1.2 million tonnes of phosphate fertilizer annually. Its products NPKs and Dap, which are sold under ‘Navranta’ brand, are reporting impressive growth in several domestic markets. It is expected to spike up phosphoric acid capacity to 4, 00,000 tonnes annually by investing nearly Rs 600 crore in the next 3 years.

This state award recognizes all the big efforts of this company. Praising the company’s initiatives, the Chief Minister said that it is highly commendable to help farmers of the land, and by doing so, PPL has presented examples to follow for other companies in the agri-business sector. PPL is an associate company of Zuari Group.

Investors want agri-biz to get organized

I

nvestors shy away from investing in agriculture in India due to its unorganized nature. If one compares all the investments made in various sectors, he would find a depressing lack of investment in agriculture.

It was seen that despite poor financial markets, the investment flow of PE and VC funds have spiked up in 2011. Much of the investments were directed towards the ITES, IT and BFSI sectors. Only handful investors showed interest in agri-business sector. There was a sharp downfall of 24 per cent in this investment if we look at 11 deals amounting $116.8 million in 2010 and 10 deals worth $89.16 million in 2011.

Investors want high returns on their capital.

Agriculture lacks many attractive characteristics which the investment agencies look for in a business. But as India is recovering its agricultural pride and taking this sector very seriously, the investors are showing keen interests in it.

The facts indicate that agriculture makes up nearly 20 per cent to the nation’s GDP and employs 50 per cent of the workforce in the country. Above all, it had has been a primarily an agricultural country.

The global concerns for foods have also given a major boost to this field. The government must catch these opportunities to attract the PE and VC funds in this sector. The increasing demand for agri-commodities will continue to rise in near future and countries like India will be benefited if they bring required innovation in this sector.

The government needs to introduce innovations in this sector and save the shrinking agricultural land. Land developers must not be allowed to build new colonies and cities in productive land. The investments should be directed not only to farms but all the chains from farm to mouth like building granaries to preserve the grains and the distribution outlets.

Agriculture includes horticulture, dairy, fisheries, poultry and meat. So all fields must be put on focus at the same time, as these are inter connected. The private players should be invited with incentives and tax breaks to organize this sector to attract massive investments.

According to a research study “Facilitating the Flow of Capital to Niche Agricultural Producers in Rural Markets” published in Small Business Institute Journal in the year 2010 by Howard Van Auken and Clyde Kenneth Walter of Iowa State University, “Availability of capital has historically been a challenge in rural markets. Niche agricultural producers face a daunting task when trying to raise capital because they commonly have business models that are not well understood by providers of capital and, thus, they are considered high risk”.

The paper rightly said that the current business models in rural sector cannot be understood fully by foreign investors unless everything gets organized.

The investors face no difficulty in comprehending computer software, hardware and biotechnology, but may not understand Indian agriculture

and its advantages. When an investor does not understand something, it is highly unlikely that he will put his money there.

There is another problem with agriculture.

It is a delayed process and involves natural risks and whole process is cyclic. In comparison to knowledge based businesses, agri-businesses are not only tough to do, but also time consuming process with unimpressive return, which is not liked by the investors putting their money in the PE and VC funds. “The gestation period is high in agri-businesses,” the research paper said.

The other major problem is that this sector belongs to farmers who cannot act like the players of an organized sector. The unorganized way of farming is a deterrent for investors.

There is another constraint. The VC and PE firms usually eye larger investment sizes. If we look at the last decade, 3,667 non-agri PE and VC deals were fainalised in India, with an average size of $17.28 million each. While in agri-business sector, 62 deals with an average deal size of $11.14 million each were made in the same period.

This sector is not as much a neglected one as it may appear. Private players are sowing remarkable interests in the sector, but their enthusiasm gets drowned due to government apathy and red tape.

But there is great hope as well. Soon this sector will see some dedicated funds like Omnivore Capital by Godrej Agrovet and India agri business fund by Rabo bank. The government can make this sector more appealing by linking it with the social benefits while having project evaluation. Apart from this, an awareness programme should be used to teach farmers and lead them to the right direction.

Investors should be attracted through innovative methods, and by organizing the sector. The government can do a lot and make a real difference in this field and bring required investment to boost the flagging agri-business economy. Negative aspects like rotting grains in various granaries and indebted farmers committing suicides should be made a thing of past by using new technology and introducing farmer-friendly schemes.

“Not much investment will flow towards this sector unless it gets organized,” the paper said.