AGRIBUSINESS:

Agri-business as a concept was born in Harvard University in 1957 with the publication of a book A concept of Agri-business, written by John David and A. Gold Berg. It was introduced in Philippines in early 1966, when the University of the Philippines offered an Agri-business Management (ABM) programme at the under-graduate level. In 1969, the first Advanced Agribusiness Management seminar was held in Manila.

Definition of Agri-business:
Agri-business is the sum total of all operations involved in the manufacture and distribution of farm supplies, production activities on the farm, storage, processing and distribution of farm commodities and items made from them (John David and Gold Berg)

Agri-business involves three sectors:

1. Input sector: It deals with the supply of inputs required by the farmers for raising crops, Livestock and other allied enterprises. These include seeds, fertilizers, chemicals, machinery And fuel. 2. Farm sector: It aims at producing crops, livestock and other products. 3. Product sector: It deals with various aspects like storage, processing and marketing the finished products so as to meet the dynamic needs of consumers. Therefore, Agribusiness is sum total of all operations or activities involved in the business of production and marketing of farm supplies and farm products for achieving the targeted objectives.

Importance of Agri-business:
1. It deals with agricultural sector and also with the portion of industrial sector, which is the major source of farm inputs like fertilizers, pesticides, machines, processing and post harvest technologies. 2. It suggests and directs the government and private sectors for development of sub sectors. 3. It contributes a good part of the national economy.

Dimensions of Agri-business:
1. It deals with different components of both agricultural and industrial sector, their interdependence and influence of one sector on other. 2. It deals with decision making process of farm either private or government in relation to production and selling aspects. 3. It deals with strengths and weaknesses of a project and thereby their viability in competing enterprises. 4. Agri-business is always market oriented. 5. Structure of Agri-business is generally vertical and it comprises the following a. Govt. policies and programmes regarding raising of crops or taking enterprises etc., b. Research and extension programmes of the Govt. c. Farm supplies or inputs d. Agricultural production e. Processing

f. Marketing of agricultural products

Scope of Agri-business:
1) Our daily requirements of food and fiber products at desired place at required form and time come from efficient and hard working of many business personnel in input, farm and food production and also in marketing them. The entire system in brief is called Agribusiness. 2) Agribusiness, of late, is combining the diverse commercial enterprises, using heterogeneous combination of labor, materials, capital and technology. 3) It is a dynamic sector and continuously meets current demands of consumers in domestic and world markets. 4) Agri-business establishment leads to strengthening of infrastructural facilities in that area, expansion of credit, raw materials supply agencies, adoption of modern technology in production and marketing of agricultural products. 5) Agri-business provides crucial forward and backward linkages. (Backward linkage include supply of inputs, credit, production technologies, farm services etc., A forward linkage includes storage, processing, transportation and marketing aspects.) 6) Agri-business generates potential employment opportunities. 7) It adds value to products and thereby increases the net profits.

Structure of Agri-business:
As mentioned earlier agri-business sector provides crucial backward and forward linkages. It involves two important sectors. 1. Farm input sector: It deals with agro-based industries providing seeds, fertilizers, feed, chemicals etc., the industries supplying machinery or equipment, implements and petroleum etc are also important in this regard. 2. Farm product sector: It deals with production and distribution of farm commodities. Large cooperative bodies also exist in Agri-business, but they are few in number, whereas small scaled agro industries are large in number. The vertical integration of a farm is very common in poultry, fruit and vegetable farms. (Horizontal integration: If one firm assumes the functions of other firm is called the horizontal integration Ex: Co-operative marketing societies, Co-operative farming societies. Vertical integration: If one firm assumes other functions which are having close relationship. a. If one firm assumes other functions (succeeding) related to consumption function is called forward integration. Ex: A wholesaler firm assuming the function of a retailer. b. If one firm assumes the other functions (proceeding) related to the production function is called backward integration. Ex: A wholesaler firm assumes the functions such as assembling, processing, packing etc., Conglomerate integration: If one firm assumes several functions which do not have any relationship. Ex: Hindustan Lever Ltd.)

SEED INDUSTRY:- Gurabini

Gujarat Sate Seeds Corporation Ltd., established in April 1975 popularly known by its brand name GURABINI is serving in the larger interest of farmers from more than three decades with farmers faith brand loyalty, quality assurance, dedicated service and sustainable contribution for upliftment of farmers with Glorious achievements. GURABINI is primarily engaged in production, processing and marketing of seeds of more than 30 crops and 100 varieties and hybrids in almost all categories i.e. Cereals, Pulses, Oilseeds, Fibre Crops, Fodder, Green Manuring Crops. GURABINI is having its Head office at Gandhinagar, and 13 Branches across the Gujarat and one Sales Depot. The Chairman of Gurabini is Principal Secretary (Agriculture) to Government of Gujarat and Managing Director is also a senior technical officer from Government of Gujarat. The authorized share capital of Corporation as on is Rs.4 Crores divided into equally shares of Rs.100 each. As against that, the paid up share capital is Rs.3.73 Crores. The shares have been held by following categories of share holders: Government of Gujarat : 95.00 % shares Government of India : 5 % shares The present strength of the Board of Directors is 8. The directors are appointed / nominated under the provision contained in Article- 62 of the Article of Association of the Company.

Gaps
i. Difficulty in obtaining funds at affordable rate of interest The state needs to do more in the field of rural finance. Banks are hesitant in opening up branches in the rural areas because of low recovery rates. The state government needs to come out with sops for the banks so that they provide credit to the farmers at attractive rates of interest. ii. Few training schools Universities should provide modern day training facilities to the farmers. At present there are only 4 agricultural universities in Gujarat. Full time courses and training programmes in the area of agriculture should be introduced. The need of the hour is to have 15 Agriculture and Co-operation Department, Government of Gujarat fully equipped training schools across the state with latest tools of farming. iii. Insufficient awareness regarding new innovations in farming The Government needs to educate farmers and constantly keep them updated regarding new innovations in farming. The farmers are still using traditional methods of agriculture and lack in terms of technical knowledge.

iv. Poor storage facility, transportation, etc There is a need to setup more warehouses and better transportation facilities at the grass root level i.e. village level. The entire state should be well connected through a network of roads so that the farmers can market their produce in time. v. Incorrective use of pesticides Farmers feel that they arent aware of the methods of using pesticides. The state lacks in organising drives and agricultural festivals on a frequent basis wherein farmers can come and get to know about new medicines for cattle, pesticides, new crops etc. vi. Subsidy to farmers The state has concentrated immensely on the development of industries and the fund allocation for farmers in the budget has been comparatively lower. d. Action Agenda/Road Map i. Training and technical advisory centres at the grass root level i.e. village to village ii. Setting up more bank branches in rural areas. There should be proper channel to increase transparency in the loan procedure and distribution. Rebate should be given to regular re-payers of agricultural loans. There should be pension scheme and crop insurance scheme for farmers. iii. Building check dams, canals, wells to cover 60% land under irrigation by 2022. iv. Attempts should be made to make agriculture a more organized sector. Farmers should be given more guidance. v. Modern equipments should be made available to small farmers. Rain harvesting techniques should be encouraged. Water management should be very effective. . vi. Research institutes should be established in various bio-geographical regions. Institutes should focus more on applied and practical research. vii. Agriculture sector needs more encouragement along with other sectors.

Agriculture Projects and Initatives

Leading as Second in Green Revolution Gujarat has achieved Agricultural Growth table at 9.6% and have carved a niche in the field of Agricultural Development in India. As of 2009, Gujarats agriculture growth rate has been three times more than the national growth rate. The department is confident to change the lives of farmers with its Agriculture Policies and the unique Initiative of the Krushi Mahotsav in the State. In 2001, the State was on verge of less water resources but today, it stand as Worlds biggest water resource Narmada Canal. Where the dust took to wind storm, there are green fields and where the farmers tilled the land with 1-2 crops, they have sort for 3-4 crops. Continuous hard work of seven years and planned efforts of the Government have resulted in Green Revolution taking shape in Gujarat.

Gujarat Agro vision 2010 envisages improving the quality of life of the rural population, including those who are resource poor, by widening their employment opportunities and increasing their income. 63% of the population of Gujarat lives in rural areas and depends for its livelihood on agriculture and the rural non-farm sector that is interlinked with agriculture. The Government is sensitive to the role of Agriculture in Economic development with a vision. Greater wealth creation for farmers and farm labourers Offer a sustainable increase in productivity Ensures Food Security Offer higher value addition to agricultural produce and exports Conservation of Water resources through micro irrigation The vision seeks to accelerate demand driven agricultural and agro industrial growth in the new globalized agricultural environment. The goal for Gujarat agriculture is to become a world-class producer and supplier in the crops where it enjoys competitive advantage. The government envisages Agriculture promotion through focused agricultural research, and application of biotechnology, information technology and ecotechnology. Conservation of soil, water and biodiversity is the prime concerns to be environmentally sustainable. As a result, a separate Department for Climate Change is set up as a major challenge to Humanit y. Gujarat Agro Industries Corporation (GAIC), which promotes agricultural activities at the ground level and fosters the development of agro industries in the state, is a manifest example of the forward-looking policies of the state. Agriculture is locomotive of our economy and a prosperous rural economy based on agriculture will ultimately make the nation prosperous Sardar Vallabhbhai Patel Agro Business Destination The State government has a comprehensive Agri-Business Policy to facilitate projects of value addition in center value chain from farm to market, develop Agri Infrastructure, encourage research and development, promote food safety management system at the farm level and processing units. As Gujarat is an upcoming Agro business destination, there are several investment opportunities in fisheries, fruit and vegetables, animal husbandry, infrastructure and innovative technologies sectors. The Food and Agri Business Sector at the Vibrant Gujarat

Summit 2009 saw 190 MoUs with Investment upto Rs.35, 456 Crores and Job Opportunities leading to 3,88,761.