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Research Methodology

A STUDY ON INDIAN
AGRICULTURE SECTOR
SUBMITTED BY: GROUP 3
AMAN AGARWAL
K. ADREN PEREIRA
CHARAN N
MOHD. AZHAR HUSSAIN
KUMAR KARTIKEY
MANOJ KARNATHI
SUBMITTED TO:
PROF. VIDHISHA VYAS
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DECLARATION

This is to declare that the report entitled A STUDY ON THE INDIAN
AGRICULTURE SECTOR was prepared for the partial fulfillment of the course
Research Methodology in Semester II of MBA by Group 3 of Marketing of Batch July
2013-15 under the supervision of PROF. VIDHISHA VYAS.

The Group confirms that this report truly represents our own work. This work is not a
replication of work done previously by any other person. We also confirm that the
contents of the report and views contained therein have been discussed and deliberated
with our professor.

Name Registration No. SIGNATURE
Aman Agarwal
13010221043

Charan N
13010221080

K. Adren Pereira
13010221074

Manoj Karnati
13010221075

Kumar Kartikey
13010221119

Mohd. Azhar Hussain
13010221018


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CERTIFICATE


This is to certify that Group 3 of Marketing of Batch July 2013-15 has completed the
report entitled A STUDY ON THE INDIAN AGRICULTURE SECTOR under my
guidance for the partial fulfilment of the course Research Methodology of Semester II
of MBA.


Signature of Faculty:

Name of the Faculty: Prof. Vidhisha Vyas

Date:








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ACKNOWLEGMENT


We would like to thank all those who helped me through the project phase of the MBA program. I
would like to express my sincere gratitude to my guide, PROF.VIDHISHA VYAS for her
enlightenment of my knowledge of agricultural industry and how to conduct, prepare a report
effectively within a short period of time, valuable advice and kind support throughout the process of
study completion.

Most importantly, we would like to thank my staff without whom the project would be incomplete. We
would also like to thank my friends and family for being around to discuss my ideas and giving me
emotional support when we were stressed.

We would like to thank all the focus group members for giving their valuable time and thoughts to my
project.
Lastly, we would like to thank the library staff at ALLIANCE ASCENT COLLEGE for their
support throughout this year.














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CONTENTS




Topics Page number
Title page
Declaration 1
Certificate 2
Acknowledgement 3
Chapter: 1
Executive Summary 6
Introduction 8
Scope of Agriculture 9
Objective of the study 10
Research methodology 11
Chapter: 2 (literature review)
About Agriculture Sector 12
Global scenario of Agriculture Sector 15
About Indian Agriculture Industries 19
Article Analysis on Agriculture (Green Revolution)
22
Chapter: 3 (Industry Analysis) 27-32
PEST Analysis
Political Factor 33
Economic Factor 36
Social Factor 39
Technological Factor 40
Mergers and Acquisition 42-43
Conclusion 44-47
Bibliography 48
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Table and Graph Contents



Topics Page No.
Population of India 27
GDP of India by different sectors 28
Market share 28
Net sales of Agriculture sectors 29
Net sales of Godrej Agrovet pvt. Ltd. 30
Net sales of Agro Dutch ltd. 30
Net sales of National Agro ltd. 31
Net sales of Advanta ltd. 31
Net sales of Rallis India ltd. 32
GDP & Labour force of different countries 32

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CHAPTER: 1
INTRODUCTION


EXECUTIVE SUMMARY

This report is going to tell us the overall state of the agriculture sector in India. It will give us a brief
overview about the sector as a study in the global environment and also individualized overview of the
sector in India.

We know that Indias record of progress in agriculture over the past four decades has been quite
impressive. The agriculture sector has been really successful in keeping pace with rising demand for
food in India. The immense contribution of increased land area under agricultural production has
drastically declined over time and massive increases in production in the past two decades have been
almost entirely exhausted resources due to increased productivity. Major contribution of agricultural
growth to overall progress has been widespread. Increased productivity has helped to feed the poor,
enhanced farm income and provided opportunities for both direct and indirect employment. The overall
success of Indias agriculture is attributed to a series of steps that led to availability of farm technologies
which has brought about dramatic increases in productivity in 70s and 80s often described as the
Green Revolution era. The major sources of agricultural growth during this period were the spread of
modern crop varieties, intensification of input use and investments leading to expansion in the irrigated
area. In areas where Green Revolution technologies had major impact, growth has now slowed. New
technologies are needed to push out yield frontiers, utilize inputs more efficiently and diversify to more
sustainable and higher value cropping patterns. Also at the same time there is urgency to better exploit
potential of rain fed and other less endowed areas if we are to meet targets of agricultural growth and
poverty alleviation. Given the wide range of agro ecological setting and producers, Indian agriculture
is faced with a great diversity of needs, opportunities and prospects. Future growth needs to be more
rapid, more widely distributed and better targeted. These challenges have profound implications for
the way farmers problems are conceived, researched and transferred to the farmers. On the one hand
agricultural research will increasingly be required to address location specific problems facing the
communities on the other the systems will have to position themselves in an increasingly competitive
environment to generate and adopt cutting edge technologies to bear upon the solutions facing a vast
majority of resource poor farmers.
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We are going to look at the top 5 agriculture companies in India and their overall influence in the
economy as a whole. An in-depth analysis has been done to see how political, economic, social, and
technological factors with regards to these industries are affecting the growth of India

The top 5 companies as per the market share are:

Godrej Agrovet pvt. Ltd.

Lemken India Agro Equipments pvt. Ltd.

Nuziveedu seeds ltd.

Advanta ltd.

Rallis India




















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INTRODUCTION

Agriculture, also called farming or husbandry, is the cultivation of animals, plants, fungi, and other life
forms for food, fiber, and biofuel, medicinal and other products used to sustain and enhance human
life. Agriculture was the key development in the rise of sedentary human civilization, whereby farming
of domesticated species created food surpluses that nurtured the development of civilization. The study
of agriculture is known as agricultural science. The history of agriculture dates back thousands of years,
and its development has been driven and defined by greatly different climates, cultures, and
technologies. However, all farming generally relies on techniques to expand and maintain the lands
that are suitable for raising domesticated species. For plants, this usually requires some form of
irrigation, although there are methods of dry land farming. Livestock are raised in a combination of
grassland-based and landless systems, in an industry that covers almost one-third of the world's ice-
and water-free area. In the developed world, industrial agriculture based on large-scale monoculture
has become the dominant system of modern farming, although there is growing support for sustainable
agriculture, including permaculture and organic agriculture.

Agriculture has been the backbone of the Indian economy and it will continue to remain so for a long
time. It has to support almost 17 per cent of world population from 2.3 per cent of world geographical
area and 4.2 per cent of worlds water resources. The economic reforms, initiated in the country during
the early 1990s, have put the economy on a higher growth trajectory. Annual growth rate in GDP has
accelerated from below 6 percent during the initial years of reforms to more than 8 percent in recent
years. This happened mainly due to rapid growth in non-agriculture sector. The workforce engaged in
agriculture between1980-81 and 2006-07 witnessed a very small decline; from 60.5 percent to 52
percent.

The present cropping intensity of 137 per cent has registered an increase of only 26 per cent since
1950-51. The net sown area is 142 Mha. The net irrigated area was 58.87 Mha in 2004-05. Presently,
the total net irrigated area covers 45.5 per cent of the net sown area, the remaining 54.5 per cent is rain
fed. The degradation of land and surface as well as ground water resources results in fast deterioration
of soil health. Losses due to biotic (insect-pests, diseases, weeds) and abiotic (drought, salinity, heat,
cold, etc.) stresses account for about one-fourth of the value of agricultural produce. The storage,
transportation, processing, value addition and marketing of farm produce need to be improved to
enhance household food, nutrition and livelihood security.

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Indian agriculture is characterized by agro-ecological diversities in soil, rainfall, temperature, and
cropping system. Besides favorable solar energy, the country receives about 3 trillion m3 of rainwater,
14 major, 44 medium and 55 minor rivers share about 83 per cent of the drainage basin. About 210
billion m3 water is estimated to be available as ground water. Irrigation water is becoming a scarce
commodity. Thus proper harvesting and efficient utilization of water is of great importance.


SCOPE OF AGRICULTURE: The scope of the agriculture industry in India are as
follows:-

NATIONAL ECONOMY: In 1990 91, agriculture contributed 31.6% of the National Income of
India, while manufacturing sector contributed 17.6%. It is substantial than other countries for example
in 1982 it was 34.9% in India against 2% in UK, 3% in USA, 4 % in the Canada. It indicated that the
more the more the advanced stage of development the smaller is the share of agriculture in National
Income.
TOTAL EMPLOYMENT: Around 65% population is working & depends on agriculture and allied
activities. Nearly 70% of the rural population earns its livelihood from agriculture and other occupation
allied to agriculture. In cities also, a considerable part of labor force is engaged in jobs depending on
processing & marketing of agricultural products.
INDUSTRIAL INPUTS: Most of the industries depend on the raw material produced by agriculture,
so agriculture is the principal source of raw material to the industries. The industries like cotton textile,
jute, paper, sugar depends totally on agriculture for the supply of raw material. The small scale and
cottage industries like handloom and power loon, ginning and pressing, oil crushing, rice husking,
sericulture fruit processing, etc. are also mainly agro based industries.
FOOD SUPPLY: During this year targeted food production was 198 million tons & which is to be
increased 225 million tons by the end of this century to feed the growing population of India i.e. 35
corer in 1951 and 100 corers at the end of this century. India, thus, is able to meet almost all the need
of its population with regards to food by develop intensive program for increasing food production.
STATE REVENUE: The agriculture is contributing the revenue by agriculture taxation includes
direct tax and indirect tax. Direct tax includes land revenue, ceases and surcharge on land revenue,
ceases on crops & agriculture income tax. Indirect tax induces sales tax, custom duty and local octroi,
etc. which farmer pay on purchase of agriculture inputs.
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TRADE: Agriculture plays and important role in foreign trade attracting valuable foreign exchange,
necessary for our economic development. The product from agriculture based industries such as jute,
cloth, tinned food, etc. contributed to 20% of our export. Around 50 % of total exports are contributed
by agriculture sector. Indian agriculture plays and important role in roads, rails & waterways outside
the countries. Indian in roads, rails and waterways used to transport considerable amount of agriculture
produce and agro based industrial products. Agriculture products like tea, coffee, sugar, oil seeds,
tobacco; spices, etc. also constitute the main items of export from India.

OBJECTIVES OF THE STUDY

The objectives of the study are as follows:

To study the global scenario of the agriculture sector.

To study about the agriculture sector in India.

To study the current trends of agriculture sector in India.

To carry out industry specific analysis of the top 5 companies in the agricultural sector in India.

To study the political, economic, sociocultural, and technological influences on the agricultural
sector.

To study the analysis of the top 5 companies in the agricultural sectors influence on the
economy.










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RESEARCH METHODOLOGY

The Research Methodology employed for this research is the Descriptive research method. Descriptive
Research Method describes the research of statistics. It is logical and primarily focuses on numeric
data. However, it is not analytical because it does not look at why certain trends within statistics occur.
Data are basically taken for five agricultural companies and are presented in the form of pie chart, bar
diagram.
Data are collected from:
1. Observation method
2. References
3. Secondary data
We took data for those 5 companies from above methods and our findings are mentioned in our
conclusions.




















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CHAPTER: 2
LITERATURE REVIEW

ABOUT THE AGRICULTURE SECTOR

Indian scenario of agriculture farming system are strategically utilizes, to the locations where they are
most suitable. The farming system that significantly contribute to the domestic GDP of India are
subsistence farming, organic farming, and industrial farming.
Intensive commercial farming this is a system of agriculture in which relatively large amounts of
capital or labor amounts of capital or labor are applied to relatively smaller areas of land. It is usually
practiced where the population pressure is reducing the size of landholdings. West Bengal practices
intensive commercial farming. Extensive commercial farming industry is on a rapid growth sector in
India. This is a system of agriculture in which relatively small accounts of capital or labor
investments are applied to relatively large areas of land.
Despite a diminishing share in the Indias GDP agriculture industry remains a key sector of the
economy and continues to play a vital role in driving Indias economic growth about 60% on Indias
population lives in it villages and a majority of rural households depend on agriculture and related
activities for their livelihood. Agriculture continues to support numerous downstream linkages with
industry by becoming a supplier of vital industrial raw material.
The Mahindra groups close linkage to rural India and agriculture is almost as old as the company
itself. The vehicles we have been building for the past six decades are extensively used in rural and
semi urban India as a source of transportation of people and goods. We embarked on expanding our
basket of offerings for the Indian farmer and entered the agribusiness sector.

THE TOP 10 AGRICULTURE FIRMS IN INDIA
1) DuPont INDIA
2) National Agro Industries
3) Poabs Organic
4) Phalada Agro Research Foundation
5) Advanta INDIA
6) Monsanta
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7) Agrosys Products India Private ltd
8) Rasi seeds
9) Godrej Agrovet limited
10) Rallies India limited

Reaching the greatest height of agriculture by incorporating advanced technologies, proper
methodologies, research and development and there by achieving the new dimensions of agriculture.
India is the first in the world in the production of milk, pulses, jute and jute like fibers second in rice,
wheat, sugarcane, groundnut, vegetables, fruits and cotton production and is a leading producer of
spices and plantation crops as well as livestock, fisheries and poultry. In the past few years Indian
agriculture has done remarkably well in terms of output growth.
The 11th Five year plan (2007-13) witnessed an average annual growth of 3.6% in the gross domestic
product from agriculture and allied sector. The growth target for agriculture in the 12th five year plan
is estimated to be 4%. Indian agriculture industry is benefitting huge from rising external demand and
the sectors wider participation in the global economy.
In order to boost investments in the industrial sector, the government of India has allowed 100%
foreign direct investment (FDI) under automatic route in storage and warehousing including cold
storages. The government has also allowed 100% FDI under the automatic route for the development
of seeds.
Department of agriculture and cooperation under the ministry of agriculture is the nodal organization
responsible for development of the agriculture sector in India. The organization is responsible for
formulation and implementation of national policies and programs aimed at achieving rapid
agricultural growth through optimum utilization of land, water, and soil and plant resource of the
country.
The market dynamics of agriculture industry as India ranks 10th in global agricultural and food exports
as per economic survey report 2012-13. Agriculture and food exports industry are in high mark of their
contribution towards economy. Agriculture accounts for about 10% of the total export earnings and
provides raw materials to a large number of industries. Exports of agriculture products are expected to
cross US$ 22 billion mark by 2014 and account by 5% of the worlds agriculture exports. According
to the agricultural and processed food products export development authority (apeda)
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Wheat exports from India are expected to grow by 23% to 8 MT in the financial year 2013-14 on the
back of strong global prices and surplus domestic supply. Exports of rice are also expected to cross 10
MT from 7.3 MT during previous year due to robust demand from West Asia, Africa and South-East
Asian countries.
Trade exhibitions on agriculture poultry, dairy and food are marketing tools and platforms which help
industries to synergize the collaborative efforts and to reach the thousands of end users. It is only
generates new business for the company but it also keeps the confidence and loyalty of its already
existing users.
Key2green pvt. ltd is one of the most promising B2B exhibition companies pioneering the concept of
such trade exhibitions by exploring the new and virgin markets and thus offering the innovative and
ground breaking trade fairs. Agriculture sector is fastest growing industry in India due to its
geographical conditions and labor and its climate.
It is a huge industry to grow and has a huge market capita. Agriculture industry has also made
impressive progress in production of not only in food grains but also oilseeds, horticulture crops, dairy,
milk, cold chain, etc.
Among others , the technological advancements have played a vital role in escalating production and
productivity through suitable mechanization inputs for agro-production and post- harvesting thus
facilitating timely field operations conservation and judicious use of water , proper post-harvest
operations to reduce losses, value addition to the produce and by products for enhanced economic
returns and employment generation.
The agro and food processing sector offers scope for development of several industries such as solvent
extraction, oleo- resins orange juice, malt extracts, floriculture and a host of other items. Besides these
items like mushrooms, tomato processing, other processing industries based on mango, pomegranate
and other vegetable like onion, potato, garlic. Industries based on herbal and medicinal plants, sheep,
goat, buffalo meat processing, poultry and poultry products and non-edible oil processing industries
have bright export prospects. The state government on its parts is alive to the needs of this sector with
regard to training, technology up gradation, improvement in infrastructural facility and a progressing
Government policy with these measures, along with support from central government and the
coordinated efforts of various institutions working in the field of agro and food products. It is expected
that this industries with come to occupy its due place in the agro industrial development of Rajasthan
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At present agriculture processing industry faces both external and internal constraints. External
Constraints include the cost disadvantages in the international marketing framework, while internal
constraints consist following:

* Quality raw material
* Exclusive Production
* Tack of suitable processed technology
* Infrastructure for distribution


GLOBAL SCENARIO OF AGRICULTURE SECTOR

Our understanding of the relationship between industrial growth and development has changed
significantly in recent decades.
The agro industry is regarded as an extended arm of agriculture. The development of the agro industry
can help stabilize and make agriculture more lucrative and create employment opportunities both at the
production and marketing stages. The broad-based development of the agro-products industry will
improve both the social and physical infrastructure of India. Since it would cause diversification and
commercialization of agriculture, it will thus enhance the incomes of farmers and create food surpluses.
The agro-industry mainly comprises of the post-harvest activities of processing and preserving
agricultural products for intermediate or final consumption. It is a well-recognized fact across the
world, particularly in the context of industrial development that the importance of agro-industries is
relative to agriculture increases as economies develop. It should be emphasized that food is not just
produce. Food also encompasses a wide variety of processed products. It is in this sense that the agro-
industry is an important and vital part of the manufacturing sector in developing countries and the
means for building industrial capacity.
India imported a record $2 billion worth of soy oil from South America in 2010, most of which came
from Argentina, the largest soy oil exporter of the world. In the last two years, India's imports of sugar
were $2 billion from Brazil, the largest sugar exporter. India has been regularly sourcing small
quantities of sunflower oil and pulses from the two countries.
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India is expected to continue to be dependent on imports of edible oils and pulses and is likely to import
wheat and sugar in future whenever domestic productions fall short. India could count on Argentina
and Brazil as reliable long-term sources since the two have the potential to increase production in the
future.
Argentina and Brazil is projected to increase from 10.8 million tones (MT) in 2010-11 to 16.9 MT in
2019-20. Their exports will increase from 6.5 MT in 2009-10 to 8.7 MT in 2020-21. Argentina will
continue to be the largest exporter of soy oil and increase its share of global trade from 48% in 2009-
10 to 58% by 2020-21. Soybean production of the two countries is expected to reach 150 MT in 2019-
20 from 108 MT in 2010-11. The soybean area will increase from 40 million hectares to 48 million
hectares in the same period.
Every developing country need to feed its people and need to fulfill the demand of every need in
agriculture specially those countries who are suffering from there climate conditions are on worst part
to depend on other countries for agriculture needs.
Brazilian sugar production will increase to 46.7 MT from 34.4 MT and exports will go up to 32 MT
from 23 MT. Brazil will continue to maintain its share of 46.5 % of the global sugar trade in the next
decade. Sugarcane production will reach 893 MT from 73 MT. Argentina wheat production will go up
from 9.3 MT to 16 MT and export surplus will be 5.8 MT in 2020. The detailed figures are given in
the tables below.
India has been importing limited quantities of pulses from Brazil and Argentina whose production of
the items required by India is small. Farmers of the two countries have shown keenness to increase
production of pulses of interest to India as part of their strategy of diversification of crops and export
markets.
Clearly, Argentina and Brazil are emerging as agricultural superpowers with their large fertile land,
abundant water resources, best technologies and practices, globally competitive production and large
exportable surplus. It should be noted here that agriculture is not subsidized in these countries unlike
in the US and the EU. In fact, Argentina imposes export taxes on agro-products and still they are
competitive in global trade. The second point to note is that most of the cultivation in these two
countries is rain-fed. If they choose to irrigate like India, they can increase the production even more
significantly.
Given the growing demand in India and the challenges faced by our agriculture sector such as depletion
of ground water, loss of agricultural land to industrial, residential and commercial use and uncertainties
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due to the vagaries of monsoon, it would be useful for India to keep track of the agriculture of Brazil
and Argentina which complement Indian market. Indian companies could enter the agribusiness in the
region following the lead shown by Renuka Sugar which has made investment of $350 million in the
Brazilian sugar sector.
Paraguay has a market economy characterized by a large informal sector. Agriculture dominates the
economy, but unequal land distribution has resulted in a large class of peasant farm laborers. A large
portion of the population is uninvolved in the formal economy, instead existing as subsistence farmers.
In recent years, the economy has grown as a result of increased agricultural exports, especially
soybeans.
Agriculture is the second main cause of forest conversion in the Amazon. In addition to deforestation,
agricultural practices tend to cause significant soil erosion and river siltation, as well as aquatic
contamination with agrochemicals.
Agriculture in the Amazon is extremely diverse. While small-scale agriculture can have significant
cumulative impact in some Amazonian ecosystems, it is the large-scale agro-industrial sectors, with
trends of rapid expansion in the Amazon, that are of most concern.
Brazil has 67% of the crop area of the Amazon, followed by Peru (14%) and Bolivia (9%) Soya
production in the Brazilian Amazon tripled from 1990 to 2006. Other crops such as sugar cane and
palm oil for biofuels, as well as cotton and rice, are expanding as well. As China and the US have
limited spaces of arable land, future expansion will take place primarily in South American countries:
Argentina, Bolivia, Brazil and Paraguay.
Agriculture is the world's largest industry. It employs more than one billion people and generates over
$1.3 trillion dollars worth of food annually. Pasture and cropland occupy around 50 percent of the
Earths habitable land and provide habitat and food for a multitude of species. When agricultural
operations are sustainably managed, they can preserve and restore critical habitats, help protect
watersheds, and improve soil health and water quality. But unsustainable practices have serious
impacts on people and the environment .The need for sustainable resource management is increasingly
urgent. Demand for agricultural commodities is rising rapidly as the world's population grows.
Agricultures deep connections to the world economy, human societies and biodiversity make it one of
the most important frontiers for conservation around the globe.
By the year 2050, our planet will be home to another 2 billion people. How will we feed them all? Not
only will there be more people, but everyone will have more money to spend on food.
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While agricultural operations provide unique opportunities to conserve biodiversity, they also can
threaten wild species and spaces. From habitat loss to pollution, agriculture contributes too many of
the environmental challenges that WWF actively addresses.
Farming is the only viable livelihood option for three-quarters of the world's extremely poor people.
Subsidies provided by U.S. and European governments to their agriculturalists encourage
overproduction, which drives down world prices and forces many producers in developing countries
to cut corners environmentally. Producers facing declining harvests from cleared lands expand into
surrounding wild lands that are rich in biodiversity, resulting in a cycle of increasing poverty and WWF
identifies and implements better management practices for agriculture.




















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ABOUT INDIAN AGRICULTURE INDUSTRIES

Agriculture Sector is changing the socio-economic environments of the population due to
liberalization and globalization

About 75% people are living in rural areas and are still dependent on Agriculture. About 51%
of Indias geographical area is used for agricultural activity

Agriculture continues to play a major role in Indian Economy

o Provides about 65% of the livelihood
o Accounts for 17.4% of GDP
o Contributes 21% of Total Exports, and Supplies Raw materials to Industries
o Growth Rate in production - 5.7%
o Food grains production 211.17 million tones
o Total Geographical Area (TGA) - 329 M.H
o Potential for Biological Production - 265 M.H
o Net Sown Area (NSA)- 143 M.H
o Net Irrigated Area - 56 M.H
o Area threatened by land degradation - 50% of TGA
o Drought-prone Area- 190 M.H

REVOLUTIONS IN INDIA

Green Revolution (1968)
Ever-Green Revolution (1996)
Blue Revolution (water, fish)
White Revolution (Milk)
Yellow Revolution (flower, edible)
Bio-Technology Revolution
ICT Revolution


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DEVELOPMENT OF INDIAN AGRICULTURE
Basic Issues:-
Revitalization of Cooperative Institutions
Improving Rural Credits
Research, Education & Extension
Human Resources Development
Trade & Export Promotion
Land Reforms
Enabling Environment for higher Agricultural Growth

IT PLAN FOR AGRICULTURE
To strengthen IT in Agriculture and creation of Databases & Information Network for
Agriculture Sector
The plan was divided into three schemes by DAC
Central Sector Schemes proposed
DAC Hqrs
Networking of DAC Field Units (DACNET)
State & District and Sub-District level (AGRISNET)

INFORMATION SYSTEMS REQUIREMENT IN AGRICULTURE

GIS/RS BASED SYSTEMS

Soil and Land use
Watershed developments
Disaster management
Cropping systems
Agriculture Resources Information
Organic farming (bio-fertilizers)
Crop weather watch

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DECISION SUPPORT SYSTEMS

Integrated Nutrient Management
Integrated Pest Management
Demand-Supply Projections
Soil-Water balance
Inter-cropping systems
Bio-fertilizer management
Early Warning System

PROJECTS UNDER PIPELINE

AGRISNET
AGRIS (Resources Information System)
Development of Agricultural Informatics
DACNET (phase II)
AGMARKNET (Phase II)
Agricultural Census 2000-2001
APHNET (Animal Production and Health Informatics Network)
ARISNET (Agricultural Research and Information System)
Water Resources Informatics System
APEDA
NPRE etc.








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AN ARTICLE ANALYSIS ON AGRICULTURE

WHAT IS GREEN REVOLUTION?

The term Green revolution was coined in 1968 by Dr. William S. Gaud, Director of the US Agency for
International Development (USAID) to describe the breakthrough in food grain production and rapid
diffusion of the dwarf wheat and rice varieties in India, Pakistan and other part of the developing world.
The Green revolution, which came on the scene around the middle of the sixties, beginning
with Kharif crop of 1966 in India refers to the quantum jump in food grain production following the
use of high yielding varieties, fertilizers, pesticides coupled with improved irrigation facility and
multiple cropping. It happened because of certain circumstances like drought conditions, which
prevailed during 1965-66 and 1966-67. These were also the years when the seeds of high yielding
variety became available.

POSITIVE IMPACTS OF GREEN REVOLUTION IN INDIA
Green revolution led to enhanced agricultural production providing security to India in food grain
production. The problem of hunger and malnutrition prevailed in the country before Green revolution
and the demand of food was fulfilled through the imported food grains from abroad. The Green
revolution triggered by high yielding varieties brought a complete change in production technology,
marketing, storage and extension. The production of food grains by 1977 grew so much that imports
were stopped, old debts were paid and the country became self-sufficient. The production of food grains
rose from less than 61 million tones in 1949-50 to 131 million tons in 1978. The production of cereals
(rice, wheat, maize and barley) rose from less than 51 million tons to about 120 million tones during
the same period. By the end of 20
th
century the food grain production rose to 209 million tones with a
buffer stock at around 60 million tones. In 2011 the food grain production in the country has reached
to about 235 million tones.




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DEVELOPMENT OF NEW VARIETIES OF WHEAT AND RICE

The dwarf varieties of wheat and rice were responsible for the Green revolution in India and the other
developing nations of the world.

DEVELOPMENT OF WHEAT VARIETIES
The dwarf varieties of wheat were developed by an American born Mexican scientist Dr. Norman E.
Borlaug at CIMMYT (Centro International de Mejoramiento de Maiz y Trigo) known as International
Centre for Wheat and Maize Improvement, Mexico. These varieties of wheat repelled hunger and
malnutrition not only from Mexico but also from several parts of the world. For this outstanding
contribution Borlaug was awarded with Nobel Prize for peace in 1970. He is also known as "Father of
Green Revolution."
A Japanese variety of wheat Norin-10 was the source of dwarfing genes for wheat improvement.
Sonora 64 and Lerma Rojo were the semi-dwarf wheat varieties developed by the incorporation of
dwarfing genes through plant breeding at CIMMYT, Mexico. The varieties were introduced to India
in 1963. The Kalyan Sona and Sonalika wheat varieties were modified form of the imported dwarf
varieties which were integrated to Indian agriculture. It paved the way for Green revolution through
the efforts of eminent agriculture scientist Dr. M. S. Swami Nathan, who is known as the "Father of
Green Revolution in India. For more than one decade these varieties were the most popular wheat
varieties in India. A great majority of wheat varieties now grown in the country are of semi-dwarf
nature. These wheat varieties are fertilizer responsive, high yielding and are resistant to lodging as well
as diseases and pests.

DEVELOPMENT OF RICE VARIETIES
A dwarf and early maturing variety of japonica rice De-geo-woo-gen from Taiwan was the source of
dwarfing gene for rice improvement. Taichung Native 1(TN1) developed in Taiwan, and International
Rice 8 (IR8) developed at IRRI (International Rice Research Institute), Philippines, were the varieties
of rice developed by the introduction of dwarfing genes. These rice varieties were introduced to India
in 1966. They were extensively grown for few years, but were later replaced by superior semi-dwarf
varieties developed in India e.g. Ratna, Jaya etc. The semi-dwarf varieties are lodging resistant,
fertilizer responsive, high yielding and photo-insensitive.

24 | P a g e

NEGATIVE IMPACTS OF GREEN REVOLUTION
Though Green revolution has been successful in eliminating hunger and malnutrition to a larger extent
from India, however it several serious side effects are evident on environment and human health. The
side effects of Green revolution on environment and human health are as follows:


Environmental Impacts of Green Revolution

The worst effect of Green revolution has been witnessed on environment of the country. Green
revolution has caused marked decline in the forest cover of India. Use of modern mechanical
instruments had led to large scale deforestation for the agricultural practices. The per capita
forest land in India is 0.1 hectare compared to the world average of 1.0 hectare. Indian forests
comprise only 0.5 % of the world forest area. India is losing forest at a rate of 1.5 million
hectares per year and consequently losing 6000 million tones of soil annually containing about
5.53 million tones of nitrogen, phosphorus and potash valued about Rs.700 crores.
Deforestation has led to the problem of drought, siltation of rivers and dams, flood, loss of
biodiversity and global warming. India is often blamed by International community for global
warming due to large scale paddy cultivation (Greenhouse gas methane is emitted from paddy
field).

Increased use of fertilizers and pesticides has caused the problem of air, water and soil pollution.
Nitrous oxide produced by microbial action on inorganic fertilizers in soil causes depletion of
stratospheric ozone layer, which serve as an shield against harmful UV-rays emanating from
the sun. Methane produced by methanogenic bacteria in waterlogged paddy field is a potent
greenhouse gas responsible for global warming.

The chemical fertilizers and pesticides used in the agricultural field are drained by rain water
to ponds, rivers and lakes causing water pollution. The phenomenon of nutrient enrichment of
aquatic bodies is known as eutrophication which deteriorates the water quality. Besides this,
the seepage of fertilizers and pesticides also pollutes the ground water. There have been reports
of ground water pollution from the state of Punjab.


25 | P a g e

Health Impacts of Green revolution

Construction of canals to boost the agricultural production and increased area of paddy
cultivation under Green revolution package technology has led to outbreak and spread of
mosquito borne diseases like Malaria, Filaria and Japanese encephalitis. Due to improved
irrigation facilities the scourge of malaria has increased manifold. Malaria and filaria persists
as serious health hazard in paddy growing regions of the country. Japanese encephalitis which
mostly afflicts children has emerged as a serious health menace in Uttar Pradesh, Bihar,
Jharkhand and Assam. It is a viral disease spread by Culex species of mosquito. West Nile
Fever is another mosquito borne disease gradually emerging as a health problem in the state of
Punjab. It is also a viral disease spread by Culex vishnuii and Culexfatigans species of
mosquito.

Endosulphan (Endosulfan) is a pesticide used for the control of pests in rice crop is highly
hazardous causing serious eye, kidney and liver disorders. The harmful effects
of Endosulphan on human health have been reported from the state of Kerala. Pesticides like
DDT are non-biodegradable and are fat-soluble, which enter the food chain and reach the
human body where they are deposited in adipose tissue. When oxidation of the fat takes place
in the body, the pesticides are released in the system causing harmful effect to human health.
The concentration of pesticides increases with increasing food chain and the phenomenon is
known as bio magnification. India's daily diet is reported to contain 270 g of DDT. The
concentration of DDT in Indians has reached to alarming proportions ranging between 13 to
31 ppm (parts per million). Delhis citizens have the highest level of pesticides in their body fat
in the world. There have been reports of cases of cancer, deformities, hepatic diseases and
neurological disorders due to pesticide poisoning in cotton growing belts of Maharashtra and
Andhra Pradesh.

Excessive use of nitrogenous fertilizers like urea causes a decrease in the potassium content of
the food grains. Potassium is important element, which checks the rise of blood pressure and
also averts the chances of heart attack in human beings. Similarly excessive potash treatment
decreases valuable nutrients in foods, such as ascorbic acid (Vitamin C) and carotene. Vitamin
C is essential for the boosting of the defense system, while carotene is the precursor of vitamin
A, which is important for vision. Nitrate fertilizer has been reported to increase the crop yield
26 | P a g e

(carbohydrate) but at the expense of proteins. Moreover, subtle balance of amino acids is
disturbed within the protein molecule, thus lowering the protein quality. Thus the escalating
problem of hypertension, cardiac disorders, night blindness, malnutrition, susceptibility to
infectious diseases etc. among Indians is result of Green revolution.

Pulses are the chief source of proteins in the diet of predominately vegetarian population of
India. They form an important segment of the balanced diet. Apart from proteins pulses are the
source of minerals and fibers. The Green revolution has helped in enhancing the per capita
availability of cereals especially wheat and rice but similar impact is not reflected in availability
of pulses per head. A significant decline in per capita availability of pulses had led to the
problem of protein malnutrition. In rural areas of Bihar, Jharkhand, Orissa, Madhya Pradesh
and Chhattisgarh, Kwashiorkor and Marasmus are the common diseases caused due to
deficiency of proteins in children. Moreover, protein malnutrition in adults has made them
susceptible to the infectious diseases like pulmonary tuberculosis, which has emerged as a
serious health problem among poor sections of the society of rural India.

CONCLUSION
Though the Green revolution has led to increased food grain production, however it several side
effects are now being realized on environment and human health. The escalating problem of
environmental pollution and the outbreak of mosquito borne diseases like malaria, filarial, Japanese
encephalitis and West Nile fever are the unwanted gift of Green revolution in India. Thus the benefits
of the Green revolution have been marginalized by the problems posed by it. Therefore, it is the need
of the hour to gradually shift from the chemical fertilizers and pesticides based modern agriculture to
natural and renewable resources based sustainable agriculture, which is cheap, environment friendly
and sustainable in long run.






27 | P a g e

Chapter 3
Industry Analysis

Population of India

population of India
Area no. of population (in billions)
Rural 0.8335
Urban 0.3771
rural dependent on agriculture 0.6185
total population 1.237







0.8335
0.3771
0.6185
1.237
0
0.2
0.4
0.6
0.8
1
1.2
1.4
rural urban rural dependent on
agriculture
total population
NO. OF POPULATION (IN BILLIONS)
no. of population (in billions)
28 | P a g e

GDP of India by different Sectors
sectors contributed to GDP of India % contributed
Agriculture 17.40%
Service 56.50%
other industry 26.10%


Market share
market share of agriculture industries % of market share
Godrej Agrovet pvt. Ltd. 22%
Lemken India Agro Equipments private limited 44%
Nuziveedu seeds limited 25%
Advanta ltd. 5%
Rallis India 13%


agriculture
17%
service
57%
other industry
26%
SECTORS CONTRIBUTED TO GDP OF INDIA
godrej agrovet
pvt. Ltd.
20%
Lemken India
Agro Equipments
private limited
40%
Nuziveedu seeds
limited
23%
advanta ltd.
5%
rallis India
12%
% OF MARKET SHARE
29 | P a g e

Net sales of Agriculture sector
Net sales of agriculture industries (in Rs. Cr.)


companies/ year 2012-13 2011-12 2010-11 2009-10 2008-09
Godrej Agrovet pvt. Ltd. 2852.6 2196.8 1596.68 1391.6 1293.55
Agro Dutch ltd. 179.52 139.62 96.36 138.41 203.3
national agro ltd. 3621.29 2913.75 2644.08 2312.31 2223.44
Advanta ltd. 102.9 137.04 103.51 103.69 140.47
Rallis India 1323.78 1181.25 1067.26 875.14 833.92







godrej agrovet pvt.
Ltd.
agro dutch ltd. national agro ltd. advanta ltd. rallis India
2012-13 2852.6 179.52 3621.29 102.9 1323.78
2011-12 2196.8 139.62 2913.75 137.04 1181.25
2010-11 1596.68 96.36 2644.08 103.51 1067.26
2009-10 1391.6 138.41 2312.31 103.69 875.14
2008-09 1293.55 203.3 2223.44 140.47 833.92
2
8
5
2
.
6
1
7
9
.
5
2
3
6
2
1
.
2
9
1
0
2
.
9
1
3
2
3
.
7
8
2
1
9
6
.
8
1
3
9
.
6
2
2
9
1
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.
7
5
1
3
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.
0
4
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1
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2
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1
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6
.
6
8
9
6
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2
6
4
4
.
0
8
1
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3
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1
1
0
6
7
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2
6
1
3
9
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.
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1
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4
1
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6
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8
3
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.
9
2
N
E
T

S
A
L
E
S
NET SALES OF TOP 5 INDUSTRIES
30 | P a g e

Net Sales of Godrej Agrovet pvt. Ltd.

Net sales of Godrej Agrovet pvt. Ltd. (in Cr.)


company/ year 2012-13 2011-12 2010-11 2009-10 2008-09
Godrej Agrovet pvt. Ltd. 2852.6 2196.8 1596.68 1391.6 1293.55


Net Sales of Agro Dutch ltd.

Net sales of Agro Dutch ltd. (in Cr.)
company/ year 2012-13 2011-12 2010-11 2009-10 2008-09
Agro Dutch ltd. 179.52 139.62 96.36 138.41 203.3



2852.6
2196.8
1596.68
1391.6
1293.55
0
500
1000
1500
2000
2500
3000
2012-13 2011-12 2010-11 2009-10 2008-09
net sales of godrej agrovet pvt. Ltd. (in Cr.)
net sales of godrej agrovet pvt. Ltd. (in Cr.)
179.52
139.62
96.36
138.41
203.3
0
50
100
150
200
250
2012-13 2011-12 2010-11 2009-10 2008-09
Agro Dutch ltd.
31 | P a g e

Net Sales of National Agro ltd.

Net sales of National Agro ltd.
companies/
year
2012-13 2011-12 2010-11 2009-10 2008-09
national agro
ltd.
3621.29 2913.75 2644.08 2312.31 2223.44



Net Sales of Advanta ltd.




3621.29
2913.75
2644.08
2312.31
2223.44
0
500
1000
1500
2000
2500
3000
3500
4000
2012-13 2011-12 2010-11 2009-10 2008-09
National Agro ltd.
102.9
137.04
103.51 103.69
140.47
0
20
40
60
80
100
120
140
160
2012-13 2011-12 2010-11 2009-10 2008-09
Net Sales of Advanta ltd. (in Cr.)

Net sales of Advanta ltd. (in Cr.)


companies/ year 2012-13 2011-12 2010-11 2009-10 2008-09
Advanta ltd. 102.9 137.04 103.51 103.69 140.47
32 | P a g e

Net Sales of Rallis India ltd.

Net sales of Rallis India ltd.(in Cr.)
companies/ year 2012-13 2011-12 2010-11 2009-10 2008-09
Rallis India 1323.78 1181.25 1067.26 875.14 833.92



GDP and Labour Force of different countries

Agriculture contributing to GDP and labour force (2012)
countries GDP (%) labour force by occupation
India 17.40% 51.10%
China 10.10% 36.70%
Russia 4.40% 4.40%


1323.78
1181.25
1067.26
875.14
833.92
0
200
400
600
800
1000
1200
1400
2012-13 2011-12 2010-11 2009-10 2008-09
net sales of rallis India ( in Cr.)
net sales of rallis India ( in Cr.)
17.40%
10.10%
4.40%
51.10%
36.70%
4.40%
India China Russia
GDP AND LABOUR FORCE
GDP (%) labour force by occupation
33 | P a g e

PEST ANALYSIS

POLITICAL FACTORS AFFECTING INDIAN AGRICULTURE
Political influence on Indian agriculture is very much widespread. It ranges from incorporation of new
policies for the farmers to the steps taken on their welfare and development. Political factor is often
related directly with the central government that is in power. Some of the factors influencing the
agriculture are as follows:

RASHTRIYA KRISHI VIKAS YOJANA (RKVY)
Economic reforms initiated since 1991 have put the Indian economy on a higher growth trajectory.
Annual growth rate in the total Gross Domestic Product (GDP) has accelerated from below 6 per cent
during the initial years of reforms to more than 8 percent in recent years. The Planning Commission in
its approach paper to the Eleventh Five-Year-plan has stated that 9 per cent growth rate in GDP would
be feasible during the Eleventh Plan period. However, Agriculture that accounted for more than 30 per
cent of total GDP at the beginning of reforms failed to maintain its pre-reform growth. On the contrary,
it witnessed a sharp deceleration in growth after the mid-1990s. This happened despite the fact that
agricultural productivity in most of the states was quite low as it were, and the potential for the growth
of agriculture was high. The GDP of agriculture increased annually at more than 3 per cent during
the1980s. Since the Ninth Five-Year Plan (1996 to 2001-02), India has been targeting a growth rate of
more than 4 per cent in agriculture, but the actual achievement has been much below the target. More
than 50 per cent of the workforce of the country still depends upon agriculture for its livelihood. Slow
growth in Agriculture and allied sectors can lead to acute stress in the economy because the population
dependent upon this sector is still very large. A major cause behind the slow growth in agriculture is
the consistent decrease in investments in the sector by the state governments. While public and private
investments are increasing manifold in sectors such as infrastructure, similar investments are not
forthcoming in Agriculture and allied sectors, leading to distress in the community of farmers,
especially that of the small and marginal segment. Hence the need for incentivizing states that increase
their investments in the Agriculture and allied sectors has been felt.



34 | P a g e

BASIC FEATURES OF THE RKVY
The Rashtriya Krishi Vikas Yojana (RKVY) has been envisaged as a comprehensive intervention based
on local agro-climatic conditions to enhance investment to achieve 4% agricultural growth rate in the
11th Five Year Plan. RKVY is a quantum jump in evolution from the variegated schematic approach
followed so far through diverse but strait-jacketed schemes, to a completely new approach in
agriculture planning by allowing the States to first plan a strategy and then designs the schemes to meet
that strategy by providing variety and flexibility in scheme design. Under Stream-I of RKVY States
have undertaken projects in the field of Micro/Minor Irrigation, Watershed Development, Horticulture,
Marketing Infrastructure etc. in2007-08. An amount of Rs. 1247.59 crore has been released to States
under RKVY during 2007-08.The RKVY aims at achieving 4% annual growth in the agriculture sector
during the XI Plan period, by ensuring a holistic development of Agriculture and allied sectors. The
main objectives of the scheme are:

To incentivize the states so as to increase public investment in Agriculture and allied
sectors.

To provide flexibility and autonomy to states in the process of planning and executing
Agriculture and allied sector schemes.

To ensure the preparation of agriculture plans for the districts and the states based on agro-
climatic conditions, availability of technology and natural resources.

To ensure that the local needs/crops/priorities are better reflected in the agricultural plans
of the states.

To achieve the goal of reducing the yield gaps in important crops, through focused
interventions.

To maximize returns to the farmers in Agriculture and allied sectors.

To bring about quantifiable changes in the production and productivity of various
components of Agriculture and allied sectors by addressing them in a holistic manner.
35 | P a g e

RECENT GOVERNMENT POLICIES AFFECTING INDIAN AGRICULTURE

In the recent Union Budget (2007-08), agriculture has got considerable attention with the various policy
initiatives from the side of finance ministry. Some of the important policies are:

During 2006-07 (until December 2006), 53.37 lakh new farmers were brought into the
institutional credit system. A target of Rs. 225,000 crore as farm credit and an addition of 50
lakh new farmers to the banking system have been fixed for the year2007-08. The two per cent
interest subvention scheme for short-term crop loans will continue in 2007-08, and a provision
of Rs. 1,677 crore has been made for that purpose.

A special purpose tea fund has been launched for re-plantation and rejuvenation of tea.
Government soon plans to put in place similar financial mechanism for coffee, rubber, spices,
cashew and coconut.

Accelerated Irrigation Benefit Program (AIBP) has been revamped in order to complete more
irrigation projects in the quickest possible time. As against an outlay of Rs. 7,121 crore in 2006-
07, the outlay for 2007-08 has been increased to Rs. 11,000 crore.

Rs. 17,253 crore had been budgeted for fertilizer subsidies in 2006-07.However, according to
the Revised Estimates, this will rise to Rs. 22,452crore.

The National Insurance Scheme (NAIS) will be continued for Kharif and Rabi crops during the
year 2007-08. The two per cent interest subvention scheme will continue in 2007-08.

Rs. 100 crores have been allocated to new Rain fed Area Development Program, set up for
coordinating all schemes for watershed development.





36 | P a g e

ECONOMIC FACTORS AFFECTING INDIAN AGRICULTURE

Economic factors extend to a large number of areas which are as follows:

MICRO FINANCE
Micro finance scheme has been introduced by National Bank for Agriculture and Rural Development
(NABARD), the apex bank for agriculture and rural development in India, to improve the access of the
rural poor to formal institutional credit and other financial products. In all 547 banks, which include
47 commercial banks, 158 RRBs, 342 cooperative banks are now actively involved in the operation of
Self Help Group (SHG)- Bank Linkage Program to spread the facility of microfinance to the needy
small and marginal farmers and tiny entrepreneurs. The program has enabled nearly 329 lakh poor
families in the country to gain access to micro finance facilities from the formal banking system.
Capital Formation in Agriculture: The share of the agriculture sector's capital formation in G.D.P.
declined from 2.2% in the late 1990s to 1.9% in 2005-06.Stagnation or fall in the public investment in
irrigation is partly responsible for this fall. However there is indication of a reversal of this trend with
public sector investment in agriculture accelerating since 2002-03.The share of public investment in
gross investment in agriculture increased by 6.5 percentage points from 1999-2000 to reach 24.2% in
2005-06.

AGRICULTURAL FINANCE

CREDIT
Availability of adequate credit is vital for every sector and agriculture is not an exception. In
India, Commercial Banks, Cooperative Banks, and Regional Rural Banks (RRBs) are
responsible for smooth flow of credit to agricultural sector. But a huge unorganized market
exists for credit to agricultural sector in India, which provide timely fund to this sector but at
the exorbitant rate of interest. Among organized credit disbursement to agriculture commercial
banks play a vital role with a share of about 70% whereas cooperative sector and RRBs
contribute 20% and 10% respectively. Kisan Credit Card (KCC) scheme was introduced to
provide adequate and timely support from the banking system to the farmers for their cultivation
needs. This scheme has made rapid progress and more than645 lakh cards issued up to October
2006. The 'Farm Credit Package' announced by the Government of India in June 2004 stipulated
doubling the flow of institutional credit for agriculture in ensuing three years. Annual targets
37 | P a g e

for this package are being surpassed in the two consecutive years from its introduction and it is
likely to surpass in the third year also.

INSURANCE
Insurance is a prime necessity to mitigate uncertainty that persists in agriculture. In India,
agriculture is still affected by such factors, which are beyond control of human being. So, there
is a great need for agricultural insurance in India. Keeping this in mind, Government of India
in coordination with the General Insurance Corporation of India (GIC), had introduced National
Agricultural Insurance Scheme (NAIS) from Rabi 1999-2000 season. The main objective of
this scheme is to protect the farmers against losses suffered by them due to crop failure on
account of natural calamities. Agricultural Insurance Company of India (AICIL) which was
incorporated in December 2002 took over the implementation of NAIS.AICIL introduced
Rainfall Insurance Scheme called 'Varsha Bima' during 2004southwest monsoon period.
Varsha Bima provided for five different options suiting varied requirements of farming
community:

Seasonal rainfall insurance based on aggregate rainfall from June to September.
Sowing failure insurance based on rainfall between June 15 and August 15.
Rainfall distribution insurance with the weight assigned to different weeks June and September.
Agronomic index constructed on the basis of water requirements of crops.

A catastrophe option covering extremely adverse deviation of 50% and above in rainfall during
the season. During Kharif 2006, this Varsha Bima scheme is being implemented in around
150districts covering 16 states across the country. AICIL is also piloting another weather
related insurance product for mango and coffee.

INFLATION
Inflation raises prices for farm inputs as well as farm products, resulting in uncertain effects on
the current net incomes of farmers, the National Council of Applied Economic Research
(NCAER) said in its monthly report. Inflation may benefit people with flexible money incomes
but not those whose money incomes are fixed.

38 | P a g e

Farmers have flexible money incomes. Therefore, theoretically at least, they should benefit
from an unanticipated increase in the rate of inflation. Empirical studies however, have not
found this connection, the NCAER study said. As inflation increases, prices paid by farmers
for various inputs increase faster than the prices they receive for their products, thereby the
terms of trade for farmers deteriorate as the rate of inflation rises. General inflation when
accompanied by growth may be associated with a slight increase in the demand for farm output.
However, increase is likely to be small due to the low-income elasticity of demand for farm
output. On the other hand, higher marketing margins due to imperfections in the agricultural
markets, stirred up by higher wages and various other marketing costs, reduce the demand for
farm output at the farm level, NCAER said. These opposing forces suggest that the net impact
of inflation in the national economy on prices received by farmers is small in comparison to the
impact on prices paid. Studies in the United States have observed that in the short run, a rise in
input prices by 10 per cent reduced net income of farmers by 2.3 per cent in short run of 1-
2years and 1.2 per cent in the long run.

The impact of inflation on agriculture is multifaceted. Firstly, it raises the sectors costs of
production through increased material input costs. Secondly, higher production costs may be
shifted to consumers, but this possibility is limited by the competitive imports, thus reducing
farmers' rate of return, the NCAER study said. The low current income from farming motivates
farmers to seek higher support prices and to extend price support policies to more commodities.
Such policies result in further higher prices and higher rates of inflation. The high input prices
lead farmers to take recourse to more credit, especially non-institutional credit for their farm
operations which ultimately leads farmers into a debt-trap, the study said. Policies towards
agriculture, especially in an inflationary setting, must come to grips with trade-offs intensified
by the phenomenon. Policies that may have beneficial effects in periods of stable prices quite
frequently have overwhelming adverse side effects during inflationary periods impeding
achievement of the original policy goals, it said. Agriculture hasnt received the investment it
requires, considering nearly two-thirds of our population depends on crops, animal husbandry,
fisheries, forestry and agro-processing for their livelihood. The recommendations of the
National Commission on Farmers are crying for attention.
This area is a blind spot. Domestic policies of agriculture do not address the long-term problem
of food security. The result of these policies has been that the country, which was self-sufficient
in food, had to import nearly 7.5 million tons of wheat during 2006 and 2007.The imports were
made at substantially higher prices than paid to Indian farmers, creating a reason for more
39 | P a g e

criticism. Moreover, the high-price imported wheat also added to the subsidy bill. Paying higher
prices for imports, even as domestic farmers are given a minimum price barely enough to
recover costs, is certainly not justified. Its clear that the government has to focus on the supply
side.


SOCIAL FACTORS AFFECTING INDIAN AGRICULTURE

Since long time, Indian farmers have been facing a number of socioeconomic problems, such as
harassment by moneylenders, inability to repay debts following crop loss, inability to get medical
treatment for the family, etc. The problem is compounded by lack of positive and cooperative support
from banks especially in the face of inclement weather and market fluctuations. Economic plight of
farmers might be illustrated with the fact that a farmer having as much as 15 acres of land and hence
considered a well off farmer in Vidarbha, with an average income of Rs 2700per acre per annum, had
an income just little more than what he would have earned the legal minimum wage for all 365 days of
the year. India consisting of 16% of world's population sustains only on 2.4% of land resource.
Agriculture sector is the only livelihood to the two-third of its population which gives employment to
the 57% of work force and is a raw material source to large number of industries. Despite of portrayal
of farming as a healthy and happy way of life, agriculture sector experiences one of the highest number
of suicides than any other industry. Farmers' suicide is not only reported in Vidarbha region of
Maharashtra, but also from Punjab, Uttar Pradesh, Kerala, and Karnataka. In 1990s, India woke-up to
a spate of suicide among farmers community. The first state where suicides were reported was
Maharashtra with particular reference to Vidarbha region. A look at the figures given out by State
Crime Records Bureau makes it evident those farmers as a professional category is suffering from this
problem of high-suicide rates. Approximately 3.4 million cotton farmers occupy the Vidarbha region
(includes Akola, Buldana, Washim, Amravati, Nagpur, Chandrapur, Gondia, Bhandara, Yavatmal,
Gadchiroli, and Wardha districts) and 95% of them struggle with massive debt, according to the
Vidarbha Jan Aandolan Samiti (VJAS; Local Farmers' Support Network). Incidence of farmers ending
their lives in this region had hit epidemic like proportions recently.




40 | P a g e

TECHNOLOGICAL FACTORS AFFECTING INDIAN
AGRICULTURE

Long since the start of green revolution Indian Agriculture has moved very far. With the inception and
adoption of new technology and improved way of farming agriculture sector has taken long strides.
Few of the factors affecting Indian agriculture are:

AGRICULTURAL MECHANIZATION
Strategies and programs have been directed towards replacement of traditional and inefficient
implements by improved ones, enabling the farmers to own tractors, power tillers, harvesters and other
machines, availability of custom services, support services of human resource development, testing
and evaluation and research and development. A large industrial base for manufacturing of the
agricultural machines has also been developed. Introduction of technologically advanced equipment
through extension and demonstration besides institutional credit has also been taken up. Equipments
for resource conservation have also been adopted by the farmers. Under various Government sponsored
schemes like Macro Management of Agriculture, Technology Mission for Oilseeds, Pulses and Maize,
Technology Mission on Horticulture and Technology Mission on Cotton, financial assistance is
provided to the farmers for the purchase of identified agricultural implements and machines.

FARM MACHINERY TRAINING AND TESTING INSTITUTES
Farm Machinery Training and Testing Institutes (FMT and TIs) have been established at Budni
(Madhya Pradesh), Hisser (Haryana), Garladinne (Andhra Pradesh) and at Biswanath Chariali (Assam)
having capacity to train 5,000 personnel annually on various aspects of agricultural mechanization.
These institutes also undertake testing and performance evaluation of agricultural machines including
tractors in accordance with the national and international standards. Since inception about 93,503
personnel have been trained and about 2,162 machines tested by these Institutes till 31 March 2006.
During 2005-06 these Institutes have trained 5734 personnel and tested 112 machines. The training
programs have been revised for giving more emphasis on crop/area/technology specific issues for
optimized training duration for their implementation through Farm Machinery Training and Testing
Institutes w.e.f 1 April 2005.



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OUTSOURCING OF TRAINING
This is a new component approved for the Tenth Plan under the Central Sector Scheme Promotion
and Strengthening of Agricultural Mechanization through Training, Testing and Demonstration in
order to train large number of farmers at nearby places. The training program shall be arranged through
the identified institutions by each State namely State Agricultural Universities (SAUs), Agricultural
Engineering Colleges/ Polytechnics, etc. This Department has released Rs 73 lakh during the year
2004-05 and Rs 38.03 lakh during the year 2005-06 to various State Governments and ICAR for
conducting training programs at the identified institutions. For the year 2006-07, a target to train 3000
farmers has been kept.

STATE AGRO INDUSTRIES CORPORATION
Seventeen State Agro Industries Corporations, Joint Sector Companies, have been promoted by the
Government of India and by the State Governments concerned. The objectives of these Corporations
envisage manufacture and distribution of agricultural machines, distribution of agro-inputs, promotion
and execution of agro based industries and providing technical services and guidance to the farmers
and others. The Government of Indias share in Six State Agro
Industries Corporations viz. Tamil Nadu, Karnataka, Rajasthan, Gujarat, Uttar Pradesh and West
Bengal have been disinvested in favor of the respective State Governments.

LEGISLATIVE FRAMEWORK
The Dangerous Machines Regulation Act, came into force with effect from 14 December 1983. The
Act provides for the regulation of trade and commerce and production, supply and use of products of
any industry producing dangerous machines with a view to securing the welfare of persons operating
any machine and for payment of compensation for death or bodily injury suffered while operating any
such machine. Power threshers used for threshing of the agricultural crops have been brought under
the ambit of this Act. The Government of India have notified the laying down the specifications for the
feeding chutes and for installation of the power threshers. Apart from power threshers the inclusion of
power operated chaff-cutter and sugarcane crusher under this Act is in process.



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MERGES AND ACQUISITIONS:
ADVANTA (UPL) GROUP
The UPL group of companies acquired Advanta in 2005; Advanta is Indias first Multi-national seed
company. Advanta holds 9% of the hybrid rice market (total market valued at ~$100150 million)
and 10% of the maize market (total market valued at ~$280 million). Advanta Group purchased
Lima grains U.S.-based sunflower business in 2008.

NUZIVEEDU SEEDS
Subsidiary of NSL group of companies. Working in rice, cotton, maize, vegetable, and other seed.
Rice and maize revenue estimated at < $10 million.

GODREJ AGROVET PRIVATE LTD
Godrej Agrovet may Sell Stake in Cream line Dairy. Godrej Agrovet Scouts Partnership with Foreign
Companies. Temasek Invests in Godrej Agrovet. Temasek buys 19.99% stake in Godrej Agrovet
for Rs.572 crore. Future Capital picks 70% in Godrej's rural initiative.

RALLIS INDIA
1972 - Tata Fission Industries, Ltd., was amalgamated with the Company with effect from 1st
September. The shareholders of Tata Fission were allotted 3 fully paid-up Equity shares against
4 fully paid-up Equity shares, and 3 fully paid-up Equity shares plus 3 fractional certificates
representing one tenth Equity shares against eight, Rs 55 paid-up Equity shares. The Company's
subsidiary Rallis fan, Ltd. was merged with it with effect from 31st August, 1966.

1973 - Since September, the Company became a subsidiary of Rallis India, Ltd. This was
amalgamated with the Company effective from 30th June, 1987.

1981 - With effect from 1st September, Whilfens (India), Ltd. was amalgamated with the
Company. The shareholders of Whilfens were allotted 18,473 No. of equity shares of the
Company in the proportion of 1 Rallis share of Rs 100 each for every 6 No. of equity shares of
Rs 10 each held in Whilfen.
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1983 - Protein Products of India, Ltd., which manufactures gelatine, ossein and di-calcium
phosphate, was merged with the Company with effect from 1st September. The merger became
effective on 17th March, 1986.

1992 - Tata Tea Ltd. (TTL) proposed to make an offer to the resident Indian equity shareholders
of the Company to acquire up to 24.99% of the existing equity share capital of the Company.

Rallis is part of India's Tata Group, the country's largest business conglomerate.

LEMKEN INDIA AGRO EQUIPMENT PVT. LTD. (LIPL)
Lemken India Agro Equipment Pvt. Ltd (LIPL), a 100% subsidiary of LEMKEN GmbH, has setup a
state of the art manufacturing facility in the heart of India in Nagpur, Maharashtra.

AGRO DUTCH LTD
Promoted by the Punjab Agro Industries Corporation in the joint sector with Malvinder Singh
Bhinder and his associates, it acquired its present name, Agro Dutch Industries.
The company has signed a new contract with one of the biggest company namely M/s Pillsbury
Company of USA.

NATIONAL AGRO INDUSTRIES
National Agro Industries, Ludhiana is a partnership firm. Mr. Sukhdev Singh, Mr. Man Mohan Singh
& Mr. Sukh Sohan Singh are the partners.






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CHAPTER 4
CONCLUSION

This report is going to tell us the overall state of the agriculture sector in India. It will give us a brief
overview about the sector as a study in the global environment and also individualized overview of the
sector in India
Agriculture is the cultivation of animals, plants, fungi, and other life forms for food, fibre, and biofuel,
medicinal and other products used to sustain and enhance human life.
The study of agriculture is known as agricultural science. The history of agriculture dates back
thousands of years, and its development has been driven and defined by greatly different climates,
cultures, and technologies.
Agriculture has been the backbone of the Indian economy and it will continue to remain so for a long
time. It has to support almost 17 per cent of world population from 2.3 per cent of world geographical
area and 4.2 per cent of worlds water resources.
Annual growth rate in GDP has accelerated from below 6 percent during the initial years of reforms to
more than 8 percent in recent years.
This happened mainly due to rapid growth in non-agriculture sector. The workforce engaged in
agriculture between 1980- 81 and 2006-07 witnessed a very small decline; from 60.5 percent to 52 %.

Agriculture accounts for about 10% of the total export earnings and provide raw materials to a
large number of industries. The total planned expenditure for the department of agriculture and
cooperation has increased by 18% from RS.17,123 Crore (US$3.11BILLION) in 2012-13.

We know that Indias record of progress in agriculture over the past four decades has been quite
impressive. The agriculture sector has been really successful in keeping pace with rising demand for
food in India.

Increased productivity has helped to feed the poor, enhanced farm income and provided opportunities
for both direct and indirect employment. The overall success of Indias agriculture is attributed to a
series of steps that led to availability of farm technologies which has brought about dramatic increases
in productivity in 70s and 80s often described as The Green Revolution era.
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In the global agriculture sector most striking twelve of the worlds 25 leading agricultural production
(plantation) firms are from developing countries. Indias karnturi global rose producer , with
$54million in total and $37million in foreign assets rank no 23 five of the other top 25 agricultural
production firms are Malaysian , and five are from Indonesia , Thailand, Srilanka, Papua, New guinea
and south Africa.
Developing countries are now also leading targets for global agricultural production. The worlds 25
top agricultural suppliers and privately owned agri food business are all from developed economies.
FDI in agriculture, multinational companies do play a key role in agricultural development, the
countries like a key role in agricultural development ,the countries like India which actively seek
foreign investment in agriculture china is now the worlds leading agricultural FDI destination , with
annual flows of $700 million.

We are going to look at the top 5 agriculture companies in India and their overall influence in the
economy as a whole. An in-depth analysis has been done to see how political, economic, social, and
technological factors with regards to these industries are affecting the growth of India.

The scope of the agriculture industry in India are as follows:
National Economy, Total Employment, Industrial Inputs, Food Supply, State Revenue and Trade.
Some of the objectives of the study are

To study the global scenario of the agriculture sector, about the agriculture sector in India,
current trends of agriculture sector in India, to carry out industry specific analysis of the top 5
companies in the agricultural sector in India.

To study the political, economic, sociocultural, and technological influences on the agricultural
sector and to study the analysis of the top 5 companies in the agricultural sectors influence on
the economy.

An article on green revolution says about what is green revolution, positive impacts and negative
impact in India.
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Graph 1 shows number of population (in billions), that is rural dependent on agriculture. Out of 1.237
of total population in billion 0.6185 of population depend on agriculture in rural areas that comes to
50%.

Graph 2 shows sectors contributed to GDP of India in which agriculture contributes 17.40%, service
sector contributes 56.50% and other sectors contributes 26.10%.

Graph 3 shows the percentage of market share of 5 agricultural firms in which Lemken India Agro
Equipments private limited has the highest % of market share of about 44%.

Graph 4 shows the Net Sales (in Rs. crore) of 5 agricultural firms for the past 5 years.
Highest net sales (in Rs.Cr):
Godrej Agrovet Pvt. Ltd- 2852.6 in the year 2012-13.
Agro Dutch Ltd-203.3 in the year 2008-09.
National Agro Ltd-3621.29 in the year 2012-13.
Advanta Ltd-140.47 in the year 2008-09.
Rallis Ltd-1323.78 in the year 2012-13.

PEST ANALYSIS
From a nation dependent on food imports to feed its population, India today is not only self-sufficient
in grain production, but also has a substantial reserve. The progress made by agriculture in the last four
decades has been one of the biggest success stories of free India. Agriculture and allied activities
constitute the single largest contributor to the Gross Domestic Product, almost 33% of it. Agriculture
is the means of livelihood of about two--thirds or 67% of the work force in the country. This increase
in agricultural production has been brought about by bringing additional area under cultivation,
extension of irrigation facilities, the use of improved high yielding variety of seeds, better techniques
evolved through agricultural research, water management, and plant protection through judicious use
of fertilizers, pesticides and cropping practices.
Yet there are some discrepancies in the agriculture sector which need to be sorted out so as to represent
India on the forefront of leading agriculturally advanced countries. All the four factors i.e. Political.
Economic, Social, and Technological need to be addressed properly wherever needed.

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FUTURE OUTLOOK
As the economy develops, high-value agriculture becomes increasingly important, both as a share in
agricultural output and in the food basket. In the recent decades, there have been substantial changes
in the patterns of production and consumption in India. One is the shift in production and consumption
from food grains to high-value agricultural commodities such as fruits and vegetables, milk and milk
products, meat, eggs, fish, and processed food products. Trade in high-value products is increasingly
displacing exports of traditional commodities, such as rice, sugar, tea, coffee, tobacco, etc.
The overview provided in this study suggests that a future road map for high-value agriculture
development should focus on investment in technology development and dissemination, basic
infrastructure, improve the technical capacity of producers and other players in the value chain,
institutional support in core functions of production, logistics and marketing through concerted public
sector support and active public-private partnerships, and provision of inputs, in particular planting
materials for fruits and seeds for vegetables.














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BIBLIOGRAPHY

http://www.ndtv.com/article/india/india-s-total-population-is-1-21-billion-final-census-reveals-
361056

http://www.indexmundi.com/india/gdp_composition_by_sector.html

http://www.scribd.com/doc/27711624/Pestle-Analysis-of-Indian-Agriculture

http://www.indiainfoline.com/

http://www.moneycontrol.com/

http://en.wikipedia.org/wiki/Economy_of_India

http://en.wikipedia.org/wiki/Economy_of_China

http://en.wikipedia.org/wiki/Economy_of_russia

http://www.slideshare.net/