Research on India_Agriculture Sector in India Monthly Update_June 2013

7/28/2019 Research on India_Agriculture Sector in India Monthly Update_June 2013

http://slidepdf.com/reader/full/research-on-indiaagriculture-sector-in-india-monthly-updatejune-2013 1/12

Agriculture Sector in India

Monthly Update

June 2013



Agriculture – Monthly Update

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 winningfarmers.

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 thethree 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.




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 includeconversion 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 groupsfrom 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 tothe 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.




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 whichinclude 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




(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 andpost‐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 SoyaIndustries

J‐Oils Mills Inc.

Toyota TsushoCorporation

N.A 51% Pending JV

29th

April,2013

Ruchi SoyaIndustries

Kagom Co.Mitsui & Co.

N.A. 40% Pending JV

10th

April,2013

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

Annual Financial Results – Revenue (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY ‘13

Deepak Fertilizers &

Petrochemicals Corporation13,293 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




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 ValleyFertilizers 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

Jain Irrigation System Ltd 34,348 41,745.6 49,384.6 49,168.8

DCM Shriram ConsolidatedLtd.

35,704.5 41,345.1 50,067.2 55,169.

Gujarat State Fertilizers &

Chemicals Ltd40,191.9 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 Ltd41,335.6 56,856.5 75,381.7 81,986.6

United Phosphorus Ltd. 53,387.3 57,606.8 76,547.2 90,102.2

Coromandel InternationalLimited

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

* Change in Financial Year Ending




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 PetrochemicalIndustries Corporation Ltd.

1,021.8 ‐6,259.4 ‐21.8 10,997.5

The Fertilizers and ChemicalsTravancore 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

Escorts Group 1,320 1,263.9 738.1 N.A

Jain Irrigation System Ltd 2,475.9 2,807.1 2,235 30.8


842.5 ‐142.7 119.2 2,028.9


Chemicals Ltd2,544.7 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


Chemicals Ltd2,172.3 2,405.9 1,583.1 2,385.2

United Phosphorus Ltd. 5,576.2 5,555.5 6,980.7 7,746


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


30,797.3 31,266.6 37,124 40,992.

Madras Fertilizers Ltd. 68.8 1,698.6 1,119.9 244.4

Rallis India Ltd. 1,260.4 991.8 1,176.4 1,190.2




Bayer CropScience Ltd 1,316 1,390 10,683 11,617

Ballarampur Chini Mills Ltd. N.A 1,084.6 4.3 1,613

Bajaj Hindusthan Limited 440.3 214.5 ‐3201.1 N.A

* Change in Financial Year Ending

Quarterly Financial Results – Revenue (INR mn)

Companies

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

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


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


N.A 13,390.8 13,370.6 14172.7


Chemicals Ltd8709.3 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


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

United Phosphorus Ltd. 362.5 299.6 375 491.7




Coromandel International

Limited18,427.6 26,606 24,009.3 21,259.6

Tata Chemicals Ltd. 30,208.9 41,655.1 41,704.6 33,617.7

ITC Ltd. 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

* Change in quarter

Quarterly Financial Results – Income (INR mn)

Companies Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan- Mar

2013

Deepak Fertilizers &

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

Southern PetrochemicalIndustries 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 ValleyFertilizers 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




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


1,150.5 2,368.8 683.9 116.7

Tata Chemicals Ltd. 1,075.9 2,567.7 2,240.7 1880.3

ITC Ltd. 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

* Change in quarter




Events Calendar

Agri –Tech Investors Meet

Date: 18th ‐19th July 2013Venue: NASC complexCity: New DelhiState: Delhi

Contact No: 91‐11‐46867500 Organizer: Indian Council of AgricultureResearch

Website: www.niabi.in/niabi/aim.naip/

International Agriculture & Horti Expo

Date: 26th ‐28th July 2013Venue: Pragati BhawanCity: New Delhi

State: DelhiContact No: 91‐11‐46867500 Organizer: Nns Events & Exhibition P Ltd.Website: www.biztradeshows.com/trade‐events/international‐agriculture‐horti‐expo.html




Research on India (ROI) is a leading source for market research on various sectors in India

that offers premium research content from worldwide publishers of market research

reports.

Contact us:

W: www.researchonindia.com

T: India (Toll Free): 1800 102 1133; International: +91 (33) 4027 6214/5

E: [email protected]

Connect with Us

Disclaimer: This monthly update is published for general information only based on press articles

and

company

releases.

Research

on

India

has

not

independently

verified

any

of

information and is not responsible for any loss or damage arising from use of this document.

http://www.linkedin.com/groups?gid=3280715&trk=hb_side_g

https://twitter.com/ResearchOnIndia

https://www.facebook.com/researchonindia

Research on India_Agriculture Sector in India Monthly Update_June 2013

Documents

Transcript of Research on India_Agriculture Sector in India Monthly Update_June 2013