Agriculture Sector in India Monthly Update June 2013
Top Story Maharashtra government to organize a foreign tour for farmers The government of Maharashtra is going to organize a ten day educational tour to Europe for 300 farmers with an objective to educate farmers on best agricultural practices that will help them to increase yield. The initiative was taken from last year when about 540 farmers have participated. Fifty percent of the tour cost will be borne by the state government and rest by the farmers. The farmers will be sent in a batch of 45 each. Each batch will be accompanied by two senior officers from Agriculture department and University. They will be acting as interpreter. The initiative is becoming popular day by day. Almost 1,800 applications have been submitted so far. However, preference will be given to the women and the award winning farmers.
News Update General Monsanto, the US biotech giant, likely to invest INR 20 bn in India The US biotech giant Monsanto, has planned to invest INR 20 bn on research and development in India over the coming 10 years. The company is primarily focusing on the three main segments such as cotton, corn and vegetables. They have already started working on breeding and research regarding hybrid vegetable seeds mainly tomato and pepper as vegetable crops are prone to diseases. They have a plan to launch hybrid vegetable seeds such as cherry tomato and bellafina bellpepper. The company will sell vegetable seeds under the brand name of Seminis, corn under the brand name of Dekalb and cotton under the brand name of Paras. The company will get INR 163 for a 450 gm packet of Bt cotton seed as technology fee from farmers. A farmer in India usually on an average uses 1.6 packets of seeds for sowing an acre. India being the world’s second largest cotton exporter sows cotton on an average 11‐12 mn hectare during the early to late kharif season across nine states. “Urban agriculture” a new concept is taking shape as a green initiative Pune has taken up urban agriculture, a unique concept as a green initiative on a massive stretch of land in a mega township which is part of the burgeoning metropolis. Nanded city with a population of about 10,000 residents has launched a green project which coincides with the “World Environment Day” on 5th June.
Agriculture – Monthly Update
The project envisages growing vegetables, fruits, medicinal and aromatic plants and flowers to cater to the needs of local residents. Situated in one of the greenest and serene parts of South Western Pune in close proximity to Mumbai‐Bangalore highway, near the historic Sinhagad fort, the “Uraban Agriculture Project” of the Nanded city will also include conversion of natural streams in the area into an "eco‐stream" park for promoting agro‐ tourism. India expected to be world’s largest cotton producer by 2022 It is estimated that India will replace China in terms of cotton production by 2022 on account of higher growth in output over the next decade. As per Organization for Economic co‐ operation and Development (OECD) and Food Agriculture Organization (FAO) cotton production is estimated to decline by 17% in China and increase by 25% in India. Cotton production in India is expected to increase by 25% due to increasing yields. Agriculture ministry data reveals that cotton production in India stood at 33.8 mn bales in the 2012‐13 crop year. “Sandalwood” the new crop of farmers Around 1,000 acres of land spread across areas such as Alair, Vikarabad and Zaheerabad, all located within 100 km from the city of Hyderabad, Andhra Pradesh, have been brought under the new‐age plantation activity that until a few years ago was restricted to dedicated zones within Karnataka and Tamil Nadu. The low cost of lands in these pockets along with a recession hit real‐estate market make this product a lucrative business option for high tech techies. On an average a sandalwood tree takes around 15‐20 years to be rich in its oil content. To cash in on this swelling enthusiasm for sandalwood among novice farmers, corporate groups from the city have come up with special profit‐sharing 'packages' to encourage more and more people to take to agriculture, especially the organic farming. The business follows a 50:50 revenue sharing model. Primarily the land owner gives the property and the farmers take care of everything from infrastructure set up to cultivation to harvest. Paddy worth INR 2 bn rotting due to shortage of godowns Paddy worth INR 2 bn is rotting at Gondia in the state of Maharashtra due to shortage of godowns. Tribal Development Corporation (TDC) has around 0.22 mn quintals of paddy worth about INR 2 bn lying in open at Gondia and Bhandara districts which is rotting due to the onset of monsoon season. But the millers at Gondia, Bhandara, Gadchiroli and Chandrapur districts are very much unwilling to lift the paddy. They are demanding a hike in Custom Milling Rice (CMR) rates as well as the pending transportation payment. As per the secretary of Rice Miller Association Gondia, there was a due payment of about INR 0.7 bn from the government since 2009. Agriculture – Monthly Update
Organic farmers of Gujarat likely to develop seed banks Around 500 odd organic farmers in the state of Gujarat are trying to build up individual seed banks in a bid to resist the onslaught of genetically modified seeds. A bank of organic seed not only ensures the reduced cost but also assures good yield along with good health of people. After completion of the development of seed banks, the farmer will be taught how to store and preserve the seeds in the bottles, shelf or any dark place. However, developing seed banks will take some time as it involves several selection trials to identify a good quality seed. The input cost of organic seeds is just 2 per cent of the production cost while that of hybrid seeds is 15 per cent. However, almost 50 per cent of farmers in the country are into organic farming as they are unable to afford pesticides and chemical fertilizers. Higher MSP along with normal monsoon to boost the production of oil crop and pulses It is estimated that the production of oil crop and pulses will increase due to higher minimum support price (MSP) and forecasting of better monsoon. Cabinet Committee of Economic Affairs (CCEA) has improved the minimum support price of oil seeds and pulses for the 2013‐14 crop year with an objective to reduce import dependency. More than 13% increase in the MSP of largest produced oil seeds, soybean and higher returns earned last year might boost the farmers to bring more area under this oil crop in the following season. Coconut Development Board to announce cash prize worth INR 50,000 The Coconut Development Board has invited applications from farmers for national level awards with cash prize of up to INR 50,000. The awards will be given in 20 categories which include best farmer at national and regional levels, best coconut processor, best research worker, best craftsman manufacturing coconut based handicrafts and best exporter of coconut products. There is also a special award category for best coconut processing unit managed by women. The application is to be submitted to the respective state agriculture or horticulture departments.
News Update Regulatory MSAMB to get management edge from Symbiosis International University Agriculture marketing system of government of Maharashtra is going to get the marketing edge from the Symbiosis International University. Agriculture and marketing minister of Maharashtra, Mr. Radhakrishna Vikhe Patil has signed memorandum of understanding Agriculture – Monthly Update
(MoU) with the Symbiosis Institute of International Business (SIIB). SIIB will provide training to the officials of Maharashtra State Agricultural Marketing Board (MSAMB) and farmers. The mandate of the two year MoU includes identifying needs of MSAMB and farmers and to design courses for them, to undertake surveys, assist in commercial utilization of export and post‐harvest facility centers established by MSAMB, to design and develop fruits and vegetable marketing chain among others. Industry Expert Speak Gujarat farmers to develop seed banks – Sarvdaman Patel, President of Organic Farmin Association of India, "The farmers are now developing seed bank as a measure against the invasion of genetically modified (GM) seeds,"
Transactions (Apr 2013 – Jun 2013)
Date
Buyer
Target
Deal Size (INR mn)
% stake
Deal Status
Type of Transaction
5th June, 2013
Ruchi Soya Industries
J‐Oils Mills Inc. Toyota Tsusho Corporation
N.A
51%
Pending
JV
Ruchi Soya Industries
Kagom Co. Mitsui & Co.
N.A.
40%
Pending
JV
Herba Foods
Olam Agro India
773.7
100%
Completed
M & A
29th April, 2013 10th April, 2013
Annual Financial Results – Revenue (INR mn) Companies
FY ‘10
FY ‘11
FY ‘12
FY ‘13
Deepak Fertilizers & Petrochemicals Corporation
13,293
16,279
24,115.7
26,599.6
Southern Petrochemical Industries Corporation Ltd.
11,557.4
13,362.2
27,400.5
23,565.6
Agriculture – Monthly Update
The Fertilizers and Chemicals Travancore Ltd.
21,059.6
24,607.6
28,760.8
26,948.9
Mangalore Chemicals & Fertilizers Ltd.
20,877.2
25,204.6
37,071.8
27,795.9
Gujarat Narmada Valley Fertilizers Company Ltd.
26,144.5
28,458.9
38,620.1
42,525.7
Escorts Group
33,663.1
41,049.2
40,024.9
N.A
34,348
41,745.6
49,384.6
49,168.8
DCM Shriram Consolidated Ltd.
35,704.5
41,345.1
50,067.2
55,169.
Gujarat State Fertilizers & Chemicals Ltd
40,191.9
47,550.5
53,018.3
62,533
National Fertilizers Ltd
51,031.6
57,910.3
73,052.9
67,202.3
Chambal Fertilizers & Chemicals Ltd
41,335.6
56,856.5
75,381.7
81,986.6
United Phosphorus Ltd.
53,387.3
57,606.8
76,547.2
90,102.2
64,066
75,578.2
98,318.4
90,302.5
Tata Chemicals Ltd.
95,435.5
110,605.8
138,060.6
147,186.3
ITC Ltd.
191,358.7
225,747
265,517.9
316,275.4
Mahindra and Mahindra (M&M)
316,879.7
370,695.7
596,433.2
673,539.5
Madras Fertilizers Ltd.
13,028.4
16,312.4
22,148.1
23,462.9
Rallis India Ltd.
8,786.8
10,919.5
12,782.7
1,4400.9
Bayer CropScience Ltd
16,260.3
21,373
22,747
26,260
Ballarampur Chini Mills Ltd.
N.A
19,843.8
23,095.5
32,748.4
Bajaj Hindusthan Limited
N.A
32,261
50,634.7
43,440.6
Jain Irrigation System Ltd
Coromandel International Limited
* Change in Financial Year Ending
Agriculture – Monthly Update
Annual Financial Results – Income (INR mn) Companies
FY ‘10
FY ‘11
FY ‘12
FY’13
Deepak Fertilizers & Petrochemicals Corporation
1,652.5
1,875.2
2,117
1,293.1
Southern Petrochemical Industries Corporation Ltd.
1,021.8
‐6,259.4
‐21.8
10,997.5
The Fertilizers and Chemicals Travancore Ltd.
‐1,038.4
‐493.3
198
‐1760
Mangalore Chemicals & Fertilizers Ltd.
535.7
775.4
691
665.7
Gujarat Narmada Valley Fertilizers Company Ltd.
1,238.4
2,665.3
2,838.4
2731.1
1,320
1,263.9
738.1
N.A
2,475.9
2,807.1
2,235
30.8
DCM Shriram Consolidated Ltd.
842.5
‐142.7
119.2
2,028.9
Gujarat State Fertilizers & Chemicals Ltd
2,544.7
7,493.7
7,575.7
5,181
Rashtriya Chemicals & Fertilizers Ltd.
2,343.2
2,447.1
2,488.3
2,726.7
National Fertilizers Ltd
1,715.1
1,385
1,267.3
‐1707
Chambal Fertilizers & Chemicals Ltd
2,172.3
2,405.9
1,583.1
2,385.2
United Phosphorus Ltd.
5,576.2
5,555.5
6,980.7
7,746
Coromandel International Limited
4,676.8
6,936.6
6,387.9
4,319.9
Tata Chemicals Ltd.
6,534.7
8,375.9
7,269.4
4,004
ITC Ltd.
41,681.8
50,179.3
62,581.4
76,080.7
Mahindra and Mahindra (M&M)
30,797.3
31,266.6
37,124
40,992.
68.8
1,698.6
1,119.9
244.4
1,260.4
991.8
1,176.4
1,190.2
Escorts Group Jain Irrigation System Ltd
Madras Fertilizers Ltd. Rallis India Ltd.
Agriculture – Monthly Update
Bayer CropScience Ltd
1,316
1,390
10,683
11,617
N.A
1,084.6
4.3
1,613
440.3
214.5
‐3201.1
N.A
Ballarampur Chini Mills Ltd. Bajaj Hindusthan Limited
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) AprJun 2012
JulSep 2012
OctDec 2012
Jan Mar 2013
Deepak Fertilizers & Petrochemicals Corporation
N.A.
N.A.
N.A.
N.A
Southern Petrochemical Industries Corporation Ltd.
N.A.
N.A.
N.A.
N.A
The Fertilizers and Chemicals Travancore Ltd.
5,210.6
7,124.1
6,767.2
N.A
Mangalore Chemicals & Fertilizers Ltd.
5,991.9
8,390.6
6,929.7
6,498
Gujarat Narmada Valley Fertilizers Company Ltd.
8,709.3
11,657.7
11,192
10966.6
Escorts Group
N.A.
N.A.
N.A.
N.A
Jain Irrigation System Ltd
N.A.
N.A.
N.A.
N.A
DCM Shriram Consolidated Ltd.
N.A
13,390.8
13,370.6
14172.7
Gujarat State Fertilizers & Chemicals Ltd
8709.3
11657.7
11,192
10,966.6
Rashtriya Chemicals & Fertilizers Ltd.
N.A.
N.A.
N.A.
N.A
National Fertilizers Ltd
18,066.6
19,465.7
18,183.8
11,486.2
N.A.
N.A.
N.A.
N.A
362.5
299.6
375
491.7
Companies
Chambal Fertilizers & Chemicals Ltd United Phosphorus Ltd.
Agriculture – Monthly Update
Coromandel International Limited
18,427.6
26,606
24,009.3
21,259.6
Tata Chemicals Ltd.
30,208.9
41,655.1
41,704.6
33,617.7
N.A.
N.A.
N.A.
N.A
176,708.1
92,525.8
102,425.7
389,802.9
Madras Fertilizers Ltd.
5,135.3
6,683.6
7,644.7
5,547.7
Rallis India Ltd.
3,383.1
4,806.2
3,398.1
2,786.5
Bayer CropScience Ltd
8,994.4
8,265.6
5,591
3,674
Ballarampur Chini Mills Ltd.
N.A
N.A
N.A
N.A
Bajaj Hindusthan Limited
N.A
N.A
N.A
N.A
ITC Ltd. Mahindra and Mahindra (M&M)
* Change in quarter
Quarterly Financial Results – Income (INR mn) AprJun 2012
JulSep 2012
OctDec 2012
Jan Mar 2013
Deepak Fertilizers & Petrochemicals Corporation
N.A.
N.A.
N.A.
N.A
Southern Petrochemical Industries Corporation Ltd.
N.A.
N.A.
N.A.
N.A
‐1,041.5
‐262.6
‐798.1
N.A
Mangalore Chemicals & Fertilizers Ltd.
‐125
564.2
58
168.4
Gujarat Narmada Valley Fertilizers Company Ltd.
327.4
723.8
1,007.3
672.6
Escorts Group
N.A.
N.A.
N.A.
N.A
Jain Irrigation System Ltd
N.A.
N.A.
N.A.
N.A
Companies
The Fertilizers and Chemicals Travancore Ltd.
Agriculture – Monthly Update
Rashtriya Chemicals & Fertilizers Ltd.
N.A.
N.A.
N.A.
N.A
National Fertilizers Ltd
‐520.1
7.4
‐124.2
‐1,070.4
Chambal Fertilizers & Chemicals Ltd
N.A.
N.A.
N.A.
N.A
United Phosphorus Ltd.
33.7
19.9
28.8
46.3
Coromandel International Limited
1,150.5
2,368.8
683.9
116.7
Tata Chemicals Ltd.
1,075.9
2,567.7
2,240.7
1880.3
N.A.
N.A.
N.A.
N.A
10,263.6
9,780.9
9,149.5
14,276.9
Madras Fertilizers Ltd.
‐189.7
428.7
272.1
351.6
Rallis India Ltd.
241.7
615.6
220.3
112.6
Bayer CropScience Ltd
887.4
978.5
9,034
718
Ballarampur Chini Mills Ltd.
N.A
N.A
N.A
N.A
Bajaj Hindusthan Limited
N.A
N.A
N.A
N.A
ITC Ltd. Mahindra and Mahindra (M&M)
* Change in quarter
Agriculture – Monthly Update
Events Calendar Agri –Tech Investors Meet Date: 18th ‐19th July 2013 Venue: NASC complex City: New Delhi State: Delhi Contact No: 91‐11‐46867500 Organizer: Indian Council of Agriculture Research Website: www.niabi.in/niabi/aim.naip/
International Agriculture & Horti Expo Date: 26th ‐28th July 2013 Venue: Pragati Bhawan City: New Delhi State: Delhi Contact No: 91‐11‐46867500 Organizer: Nns Events & Exhibition P Ltd. Website: www.biztradeshows.com/trade‐ events/international‐agriculture‐horti‐expo.html
Agriculture – Monthly Update
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Agriculture – Monthly Update