Documentos de Académico
Documentos de Profesional
Documentos de Cultura
On
Agriculture and Processed Foods Industry of Morocco
Business Opportunities for Goa / India
Submitted to
Institute Code: 750
Institute Name: S.R. Luthra Institute of Management
Under the Guidance of
Ms. Esha Pandya
(Assistant Professor)
In partial Fulfillment of the Requirement of the award of the
degree of Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Students of
MBA (Semester - III)
Group No.1
Month & Year:
December, 2014
1
Students Declaration
We, following students, hereby declare that the Global/ Country Study
Report titled Agriculture and Processed Foods Industry in (Morocco) is a
result of our own work and our indebtedness to other work publications,
references, if any, have been duly acknowledged. If we are found guilty of
copying any other report or published information and showing as our
original work, or extending plagiarism limit, we understand that we shall be
liable and punishable by GTU, which may include Fail in examination,
Repeat study & re-submission of the report or any other punishment that
GTU may decide.
Enrolment No.
Name
137500592057
Krishna Mistry
137500592074
Smit Patel
137500592077
Vinay Patel
137500592080
Nilam Pittaliya
137500592102
Kishan Solanki
137500592114
Vikas Ghori
Place :
Signature
Date :
2
Institute Certificate
Certified that this Global Country Study and Report Titled Agriculture
% and the
separate plagiarism report in the form of html /pdf file is enclosed with this.
PREFACE
To become a manager in future passing the theoretical subjects is not enough.
The subjects are the bases for our carrier from which we can strengthen our knowledge
to apply it in real world. The GCSR project provides the platform of opportunity to know
the current market situation, various factors affecting the industrial and economic
performance and the behavior of environment. It gives the opportunity where we can
apply the theory knowledge in real world and so that we can be a successful manager in
future. This changed the market structure, character and focus of marketing strategies.
MBA is a course where unlike many other courses practical studies are
accompanied together with theoretical studies, case analysis and preparation of various
reports, giving presentations on various topics are a vital part of the practical studies in
this course.
The preparation of the GCSR is one such part of the practical studies here. For
this purpose we are required to select one particular topic related to a country or trade
and prepare a report through study research. So, we go for detailed study of country
Morocco, with Agriculture and Processed Foods industry.
EXECUTIVE SUMMARY
Morocco is a constitutional monarchy in which the King possesses much more authority
than either the judiciary or the legislature. The Moroccan Constitution provides for a
monarchy with a Parliament and an independent judiciary.
Moroccos economic growth fluctuates heavily with agricultural output, which is largely
determined by rainfall, as only 16 percent of total arable land is irrigated.
The Moroccan economy improved in 2013, with overall growth of 4.7% supported by
good agricultural results. Indeed, agricultural value added increased by 21%, compared
to a fall of 2.5% in non-agricultural activities.
Many high value food products are not known to the Moroccan consumer, which means
there is room for many new products.
The local food industry is upgrading and becoming more demanding on quality and
regularity of supply.
Limited purchasing power of the Moroccan population. An estimated 10 % of the
population (3 million) is able to buy imported products regularly.
Traditional distribution networks are still predominant for many food products,
especially in rural areas.
Most importers are located in Casablanca and imports by container are mostly done
through the port of Casablanca.
ACKNOWLEDGEMENT
No task is a single mans effort cooperation and coordination of various people
at various places goes into successful implementation. It is great pleasure to have the
opportunity to extend our heart-felt thanks to everybody who helped us through the
successful completion of this project.
We wish to take this opportunity to express our deep gratitude to the persons
that have helped, encouraged, inspired and enlightened us with their constructive ideas
and overall support towards the completion of this project successfully.
We are highly indebted to Asst. Prof. Esha Pandya for her guidance and constant
supervision as well as for providing necessary information regarding the project & also
for her support in completing the project.
We would like to express gratitude towards all members of S.R.Luthra institute
of management for their kind co-operation and encouragement which help us in
completion of our project.
We also would like to express our special gratitude and thanks to Dr. J.M.
Kapadia for giving us such attention and time.
Our thanks and an appreciation also goes to our group members and classmates
in developing the project and people who have willingly helped us out with their
abilities.
INDEX
Topics
Page No.
11
19
24
Present trade relation during last 3-5 years by selected industry, as well
31
as bilateral investment
SWOT Analysis
36
36
40
44
Bibliography
47
Tables
Name of Table
Page No.
16
18
35
STEEPLED analysis
STEEPLED analysis of Morocco
Social
Technological
Industry remains dominated by the public sector, with the universities employing
58% of researchers.
In 2005 the Moroccan king launched Techno polis Rabat, the project is expected to
create 20,000 job opportunities.
Economic
Pay a special attention to the countrys liberal reforms, foreign trade, bilateral trade
agreements, Tangier free trade zone, FDI and the general investment climate.
Environmental
Has set itself the task of working out the legislative framework and an effective
juridical regularization of environmental protection.
Political
Moves to democratise public life and make government and public institutions
operate more transparently.
Efforts have been made to boost the governments openness and improve its
relations with citizens.
Legal
Broadly aims to strengthen the role of the prime minister, legislature, and judiciary;
to promote human rights, womens equality, and Berber cultural rights; and to
encourage decentralization.
Demographic
There are no official figures about the exact ethnic origins of all Moroccans, but the
implicitly accepted idea inside and outside Morocco is that Moroccans are
essentially mixed Arab-Berbers.
10
Population
35 million
0-14 years: 27.8% (Male 45,14,623/ Female 43,82,487)
15-64
Age structure
years:
66.1%
(Male
1,03,35,931/
Female
1,07,85,380)
65 years and over: 6.1% (Male 881622/ Female 1068318)
Total: 26.9 years
Median age
1.054%
Birth rate
Death rate
Ethnic Groups
Languages
French
Muslim
99%
(official),
Christian
Religious
community.
GDP growth
3% 2012-13
11
1%,
Tiny
Jewish
Literacy
Unemployment
9% 2012-13
Clothings and textiles, Electronic components, Inorganic
chemicals, transistors, crud minerals, Fertilizers(including
Key Exports
Key imports
fabrics, telecommunication
Russia, Germany
Currency
Exchange rate
Religion
Sunni Islam
The tune of Hymne Cherifien was already in use in
National Anthem
Flag
12
Economic Scenario
Moroccos economic growth fluctuates heavily with agricultural output, which is largely
determined by rainfall, as only 16 percent of total arable land is irrigated. In the past,
growth has varied from 11 percent to minus 1 percent largely because of the lack of
rainfall. Moroccos rainfall during the 2012/2013 season significantly improved
compared to the previous season. The government is expecting cereal production for
the 2012/2013 season to be around 7 million MT, and hence a 4.3 percent GDP growth
rate. According to the Ministry of Agriculture, the Moroccan grain harvest for
2011/2012 reached 5.1 MMT, down 40 percent compared to the 2010/2011 harvest of
8.36 MMT. The 2011/2012 cereal production level reduces the GDP growth rate to 2.4
percent.
Moroccos soft wheat production in the 2011/2012 season totaled 2.74 million tons,
down 34.3 percent from the previous season, while durum wheat production totaled
1.13 million tons, 38.9 percent lower than the previous crop.
Political Stability
To protect local producers from foreign competition, the Government of Morocco set in
the 2012/2013 season a 17.5 percent import duty on common wheat. The 17.5 percent
duty was implemented during the harvest and collection period going from June 1, 2012
until September 30, 2012. Effective, October 1, 2012 until December 31, 2012, Morocco
suspended import duties on common wheat and implemented an import restitution
scheme. Import duty on durum wheat (80 percent) was also suspended effective
October 1, 2011 until the December 31, 2012. The suspension of wheat import duties is
intended to offset the increase in wheat prices in the international market.
In April 2008, the Ministry of Agriculture announced its new strategy for agricultural
development in Morocco. In its fourth year of implementation, the strategy has been
13
14
15
Qty(Mt)
2013-14
Value(Rs.lac)
Qty(Mt) Value(Rs.lac)
Dairy Products
362.22
655.37
968.00
1,958.42
Natural Honey
266.00
324.61
337.66
502.42
Pulses
216.00
111.66
818.00
420.30
Fresh Grapes
493.73
542.41
400.00
353.36
Other Cereals
1,375.00
225.66
1,794.33
346.65
609.53
174.11
951.00
258.32
37.00
24.78
239.10
256.76
Basmati Rice
106.00
78.82
262.50
227.47
225.00
57.07
715.71
197.77
0.00
0.00
51.60
125.74
Guargum
40.00
130.98
78.10
120.92
Mango Pulp
75.76
37.30
164.16
98.75
Floriculture
12.46
38.54
31.72
79.89
Cereal Preparations
18.36
26.65
28.72
35.47
Miscellaneous Preparations
Other
Processed
Fruits
Vegetables
&
16
Cocoa Products
35.00
132.31
4.92
31.52
105.21
35.53
12.26
20.56
28.40
13.89
43.20
18.33
1.00
80.94
0.52
13.12
Casein
7.00
27.46
0.00
0.00
0.50
0.10
0.00
0.00
4,014.17
2,718.19
6,901.50
5,065.77
Total
17
&
2013-14
Preserved
52.07
57.34
49.52
58.26
20.53
14.51
10.30
14.12
0.00
0.00
0.00
1.23
1.58
2.20
0.09
0.75
Cocoa Products
0.00
0.00
0.01
0.07
Cereal Preparations
0.00
0.00
0.00
0.00
0.13
0.31
0.00
0.00
Floriculture
0.30
0.81
0.00
0.00
0.00
0.00
0.00
0.00
Pulses
0.00
0.00
0.00
0.00
Total
74.61
75.17
59.92
74.43
Vegetables
Other Processed Fruits
& Vegetables
Fruits
&
Vegetables
Seeds
Miscellaneous
Preparations
Cucumber
Gherkins(
and
Prepd.
&
Presvd)
18
Technological analysis
1. Agriculture produces refinement equipment such as, cleaners, graders and
driers for on-farm operations as well as industrial operations.
2. Processes and equipment for parboiling of rice, preparation of puffed rice and
flaked rice.
3. Development of processes and equipment for processing of pulses to produce
dhal for higher recovery and better quality.
4. Development of driers using agricultural residues, by-products and solar energy.
19
6. Processes and equipment for production of high quality ground spices and spice
mix, development of raw materials and processes for production of instant
sweets, curries, snack foods, instant soft drinks, idli, Dosa, sambhar
mixes/powders, egg powder, production and packaging of milk products such as
shrikhand, butter milk, paneer, ghee and sweets.
7. Equipment for high recovery of sugarcane juice, processes for production of
high quality jiggery and liquid jiggery.
8. Improved technology for processing of jute sticks to yield jute fibre and
impregnation, preparation of jute based textile materials and bags.
9. Control of stored grain insects by using chemical and physical methods, storage
structures for on farm, trade, and process plant level operations.
10. Processing and canning of meat, meat products and fish.
Economical analysis
In Agriculture and food processing industry provides 51% employment of
the total workforce in 2012. Agriculture sector is the largest employer in India's
economy but contributes a declining share of its GDP (13.7% in 2012-13). Indian
economy is growing and to sustain this growth agriculture sector has to perform
well. How to produce more of agriculture produce with limited natural resources
in sustainable manner for ensuring food and nutritional security and increasing
income of farmers, are major challenges for the Nation.
20
Political analysis
Internal Political/Economic Events Increasing economic disparities among regions
are emerging as a political risk capable of provoking serious socio-political tensions
that could lead to localized violence from time to time. The states likely to be
advancing economically are: Gujarat, Haryana, Kerala, Maharashtra, Punjab and
Tamil Nadu. Those likely to be lagging economically are: Assam, Bihar, Madhya
Pradesh, Orissa, Rajasthan and Uttar Pradesh
Any outbreak of hostilities between India and its neighbors could disrupt trade
and negatively affect the solvency of some importers. India could benefit greatly
from free trade & Policies. Some of initiatives are: Most of the processed food
items have been exempted from the purview of licensing under the Industries
(Development & Regulation) Act, 1951, except items reserved for small-scale
sector and alcoholic beverages. Food processing industries were included in the
list of priority sector for bank lending in 1999.
Legal analysis
Agreement on the application of Sanitary and Phytosanitary Measures (The SPS
Agreement concluded under GATT in 1994) came into effect in 1995 for developing
international standards to ensure the safety of food for consumers and to prevent the
spread of pests or diseases in animals and plants. These measures protect
human/animal life from risks arising from additive contaminants, toxins or diseases
causing organisms in their food. The objectives of SPS can be accomplished in several
ways as indicated below.
1. Requiring product to come from a disease free area
2. Inspection of products
3. Specific treatment of processing of products
21
4. Setting allowable maximum levels of pesticide residues or permitting the uses of only
certain additives in food.
Environmental analysis
(a) National plan for improvement and extension of agro-processing technology at farm,
traditional small industry and modern industry levels should be prepared. The plan
should take into account the diversity in resources and needs of different regions in the
Country. It should include programme details and implementation schedule for the first
four or five years.
The progress of plan implementation should be periodically reviewed to allow
adjustments and corrective measures, and to develop programme details for the years
beyond the period under review.
(b) Thrust areas for research and development should be identified and medium term
research and development programme should be prepared and implemented to
support the national plan for improvement and extension of agro-processing technology
at different levels. Treatment and utilization of effluents from agro-processing industry
should be included in the R.& D. programme.
(c) Emphasis should be put on the establishment of new agro-industrial plants in the
production catchments to minimize transport cost, make use lower cost land and more
abundant water supply, create employment opportunity in the rural sector and utilize
process waste and by-products for feed, irrigation and manure.
22
processed products are perishable or semi-perishable in nature, cold chain will have to
be established.
(e) The national plan should provide for management of agro-industrial activities in the
catchment area, both by private companies and individuals as well as cooperatives.
(f) Financial incentives and support should be provided on liberal scale to promote the
modernization of agro-processing industry and for establishing new such industries in
production catchment
Demographic analysis
The demographic trend and lifestyle patterns of the society that a retailer
intends to serve, decide the retailers strategy. Traditionally, children seldom
accompanied their parents while grocery food shopping. Apart from quality and
range of products, value for money and attractive displays, the human touch has a
vital role to play. There is also emphasis on schemes and promotions, which, as
the study ratifies, do pull customers. Further the trend is towards more
convenience and flexibility in terms of exchange/ return policies, which play a vital
role in encouraging the purchase of Smart, polite and courteous sales people
might make all the difference for a store, which is like any other in terms of its
Product offerings.
23
Advantages:
Many high value food products are not known to the Moroccan consumer, which
means there is room for many new products.
The local food industry is upgrading and becoming more demanding on quality
and regularity of supply.
Increasing middle class. Increasing number of women working outside the home.
Modernizing lifestyle.
Challenges:
Many products that are common in the India are not known in Morocco.
24
Traditional distribution networks are still predominant for many food products,
especially in rural areas.
Most importers are located in Casablanca and imports by container are mostly
done through the port of Casablanca.
In all major ports and airports, the Ministry of Agriculture has one-stop shops for
importers to clear all kinds of imported agricultural products. The entity in
charge is the DCQ (Direction du Contrle de la Qualit) which is a regional
representative of the National Office for Food Safety (ONSSA).
To clear Customs, importers are required to present a sanitary certificate for all
animal food and fresh fruit and vegetable products they import. A local
laboratory analysis done by official laboratories may also be required to clear
customs.
Imports and distribution of food and beverage products in Morocco are handled
both by regular importers as well as importers who operate on an opportunity
basis. Regular importers market their products through their own sales force
(typically to hotels, supermarkets, wholesalers) and through independent wellestablished wholesalers (in case of small shops, restaurants). U.S. exporters
25
The holy month of Ramadan is not a holiday but business slows down
significantly because Muslims fast during the day. Most restaurants close during
this month, alcohol is not served and people are not allowed to smoke during
the day. Exporters should avoid visits during Ramadan but if travel during this
period is unavoidable exporters should concentrate their meetings in the
morning. Surprisingly, consumption of some products (such as honey, sugar,
butter, vegetable oil, dairy products, etc.) increases during Ramadan. In 2012,
Ramadan started mid-July.
26
Importers still play a major role in the introduction, marketing, and distribution
of imported foods throughout the country. Except for the two largest
supermarket chains that, in addition to buying from importers, have also been
importing directly through their buying platforms in Europe, all supermarkets get
their products either directly from importers or from wholesalers. It is not
uncommon that importers are also wholesalers. Many importers prefer direct
contact with suppliers as they feel that middlemen complicate transactions,
lower profits, and could work with competitors. Most Moroccan importers like
to buy on samples. Internet sales are virtually non-existent for food products.
Moroccans are regularly exposed to Western culture in their daily life, especially
through television (an estimated 1 million TV satellite dishes). Thus, the steady
Western influence on Moroccan lifestyles is expected to result in even higher
demand for consumer-oriented products in the future.
27
India has a greater potential to export semi-finished products and products for
industrial uses such as milk powder, cheese, processed nuts, and other
ingredients. Although local processors have improved and diversified
significantly their production over the past few years, the range of products they
are putting on the market is still very small and is unlikely to fulfil all the
demand. The local producers are becoming more quality-conscious; Indian
suppliers can play a major role in fulfilling the demand for regular quality
products. Most food processors purchase their ingredients from well-established
importers or from local agents of multinationals. Very few large processors
purchase their ingredients directly from exporters abroad. Thus, INDIAN
exporters are advised to go through local suppliers of ingredients to be able to
use their distribution network. The local industry is committed to develop
further in the future to withstand stiffer competition. Many local producers
(biscuit plants, confectioneries, canneries, etc.) have started offering a new
range of products to maintain their market share and compete with imported
products.
In 2011, Morocco received about 9.34 million visitors, mostly tourists from
Europe but also from the India, and about 4.4 millions Moroccans leaving
overseas. The GOMs ambitious plan to reach 10 million tourists by 2010 was
achieved by more than 90 percent though the current global economic
slowdown. Recently, the GOM launched a revision of this plan aiming to reach 20
million tourists by 2020. However, large modern hotels are still popping up
throughout the country, which is expected to boost the demand for food
28
Although there are over 839 graded hotels in Morocco, the potential market for
INDIAN consumer-oriented products consists essentially of more than 60 upscale
hotels (5 stars) concentrated mostly in Agadir, Marrakech, Casablanca, Rabat,
and Fes, about 38 tourist villages and clubs, and over 149 hotels graded as 4
stars. Other hotels target lower income customers and dont offer regularly
imported food and beverages to their clients. Most hotels purchase their food
products from local distributors that are also in some cases importers. INDIAN
suppliers should try to work with these distributors to enter this market, as
hotels and hotel chains managements are rarely willing to get involved in import
operations because of the small volume involved.
basis.
Most
of
these
restaurants
buy
directly
from
local
Although Morocco is a net exporter of fish products over $782 million in 2011,
there is a window for some Indian seafood products. The demand should come
mostly from the upper class hotels and restaurants located in major cities. The
per capita consumption of fish is low in Morocco and consists mostly of fresh
low-priced pelagic species such as sardines. Inadequate distribution channels
29
have been a major limiting factor to increased fish consumption. Thus, few
importers have appropriate facilities and refrigerated trucks to supply frozen
food to supermarkets. Also, few supermarkets have equipment to handle and
exhibit frozen or refrigerated fish. It is estimated that less than 40 percent of
Moroccan families have refrigerators at home.
New exporters are advised to work closely with already established frozen food
importers that are also distributors in order to use their distribution network and
experience. The volume of seafood used by hotels and restaurants remains
relatively small and thus it is still more beneficial for them to purchase from local
distributors. Indian suppliers can work closely with the local distributor to carry
on promotional activities in selected hotels, restaurants, and supermarkets.
30
IndiaMorocco relations
MoroccoIndia relations refer to the bilateral ties between Morocco and India. Morocco
has an embassy in New Delhi. It also has an Honorary Consul based in Mumbai. India
operates an embassy in Rabat. Both nations are part of the Non-Aligned Movement.
In the United Nations, India supported the decolonization of Morocco and the Moroccan
freedom movement. India recognized Morocco on June 20, 1956 and established
relations in 1957. The Ministry of External Affairs of the Government of India states that
"India and Morocco have enjoyed cordial and friendly relations and over the years
bilateral relations have witnessed significant depth and growth.
The Indian Council for Cultural Relations promotes Indian culture in Morocco. Morocco
seeks to increase its trade ties with India and is seeking Indian investment in various
sectors. The bilateral relations between India and Morocco strengthened after the
Moroccan Ambassador to India spent nearly a week in Srinagar, the capital city of
Jammu & Kashmir. This showed Moroccan solidarity with India in regard to Kashmir.
31
Political Relations
Relations between India and Morocco go back to the 14th century when the famous
traveler and writer from Tangier, Ibn Batuta travelled to India. His writings on medieval
Indian society are as much an important source of historical information about India to
the Indians as to the Moroccans. In modern history, India was active in the UN
supporting the Moroccan freedom movement and recognized Morocco on June 20,
1956 when it became independent of the protectorate arrangements with France.
Diplomatic Missions were established in 1957.
Over the years, India and Morocco have enjoyed cordial and friendly relations and
bilateral relations have witnessed significant growth. Vice President Dr.Zakir Hussain
visited Morocco in 1967 and King Mohammed VI, when he was Crown Prince, visited
India to participate in the Non-Aligned Movement Summit in 1983 and, later in 2001
and in 2003, as the King of Morocco. Former Prime Minister Shri Atal Behari Vajpayee
visited Rabat in 1999. Visits at Ministerial and official level have taken place regularly
between the two countries.
The Moroccan Minister for Foreign Affairs and Cooperation, Mr. Taieb Fassi Fihri, visited
India in April 2011 and met with Honble External Affairs Minister Shri S. M. Krishna. A
number of bilateral and international issues of mutual interest were discussed during
the meeting.
The Secretary General of the Moroccan Foreign Ministry, Mr. Nasser Bourita traveled to
India in the first week of April 2012. During the visit, he held wide ranging talks with
senior officials of the Ministry of External Affairs.
In June 2012, Shri E. Ahamed, the Honble Minister of State for External Affairs, Govt. of
India, visited Morocco. During the visit, Honble MOS(EA) met separately with Mr.
Youssef Amrani, Minister-Delegate to the Foreign Minister of Morocco, Mr. Saad edine
El Otmani, Minister for Foreign Affairs and Cooperation, Mr. Abdelkader Amara,
Minister of Industry, Trade and New Technologies and Mr. Mohamed El Ouafa, Minister
32
Commercial Relations
In October 2010, Honble Minister of State for Commerce and Industry, Shri Jyotiraditya
Scindia visited Morocco. During the visit, the Honble MOS(C&I) met with the Moroccan
Minister for External Commerce, Mr. Abdellatif Maazouz and discussed various aspects
of bilateral trade and commerce. The Honble MOS(C&I) also participated in the World
Economic Forum for Middle East and North Africa held in the city of Marrakech. .
The 4th India-Morocco Joint Commission was held on 28-29 April, 2011 in New Delhi.
The meeting was co-chaired by Shri Anand Sharma, Honble Minister for Commerce &
Industry and the Moroccan Minister for External Trade, Mr. Abdellatif Maazouz. During
this visit, Mr. Abdellatif Maazouz also met Shri Sharad Pawar, Minister of Agriculture &
Shri Virbhadra Singh, Minister for Micro, Small & Medium Enterprises. The meeting of
India-Morocco Joint Economic Council chaired by CII of India and the CGEM of Morocco
(Confederation General of Moroccan Enterprises) also took place in New Delhi on 29
April, 2011.
For long, India has been one of the major markets for Moroccan phosphate and its
derivatives. Other main items of export to India are metallic ores and metal scrap, semifinished products and inorganic chemicals. The main items of Indias exports to Morocco
are cotton yarn, synthetic fiber, transport equipment, pharmaceuticals, agricultural
implements, chemicals, spices and manufactured metals. The balance of trade has been
in favor of Morocco because of imports of phosphoric acid and rock phosphate by India.
The quantum of bilateral trade, which was US$ 1.63 billion in 2010, reached US$ 2.04
billion in 2011 (including Indias exports to Morocco at US$ 587.2 million and Indias
imports from Morocco at US$1.45 billion). The trade turnover between the two
countries stood.
33
34
Product
2011-12
Qty(Mt)
2012-13
Value
(Rs.lac)
Qty(Mt)
2013-14
Value
(Rs.lac)
Qty(Mt)
Value
(Rs.lac)
34772.39
17181.04
40278.34
FLORICULTURE
Fruits /
Vegetable
17168.0
15226.55
28804.43
Floriculture
0.00
36532.27
0.00
42344.58
0.00
45589.08
Total
15226.55
65336.7
17168
77116.97
17181.04
85867.42
Seeds
0.00
290433.14
0.00
328833.37
0.00
511747.78
Fresh Fruits
0.00
255715.45
0.00
329512.33
0.00
436426.05
Total
546148.59
658345.7
948173.83
Vegetables
Pulses
Processed
Vegetables
106584.24
201709.0
0
127999.52
343496.0
0
173699.69
0.00
105992.69
0.00
111965.56
0.00
131661.87
0.00
165725.15
0.00
196876.65
0.00
255633.25
174205
378302.08
201709
436841.73
343496
Processed
Fruits &
Juices
Total
560994.8
ANIMAL PRODUCTS
Meat &
Preparatio
0.00
1411093.3
0.00
35
1790320.1
0.00
2724690.6
n
Dairy
Products
Poultry
Products
Total
0.00
61060.15
0.00
176877.30
0.00
376307.61
0.00
38835.20
0.00
46013.11
0.00
50941.12
1510988.6
2013210.5
3151939.3
707326.0
1652386.7
406323.0
2128700.2
601756.0
1173403.1
0.00
149436.96
0.00
196206.88
0.00
246156.51
832619.0
524644.77
535637.0
406536.21
511663.0
321205.91
0.00
383377.55
0.00
496265.55
0.00
688189.44
1539945
2709846.0
941960
3227708.9
1113419
2428955.0
Misc
Processed
Items
Total
CEREALS
Basmati
Rice
Wheat
Other
Cereals
3178235.
1544969.0
3459919.
1940938.8
3757377.
2930012.1
740747.0
102326.85
6514815.
1052900.1
5559837.
925710.59
4073694.
549305.
5441306.
818061.46
4609238.
713237.03
3997734.
865912.76
6688035.
1444880.6
7018575.
1749316.2
5256781.1 20945027
6318275.9
NonBasmati
Rice
Total 11990410
3062513.9 22104075
36
SWOT Analysis
SWOT analysis of agriculture industry in India
Strengths
The Indian agriculture is large, competitive and well developed, offering products at low
prices. The sector experiences a constant demand, as Indians have a strong preference
for fresh rather than processed foods and for local spices and ingredients (The World
Bank, 1997). Provides employment for a large Indian population, living in rural
territories. Recent advances in technology and government initiatives support the
development of the sector. In pursuance of the government policy to strengthen and
promote IT led governance, the department of agriculture and cooperation has been
taking various measures to promote the use and application of technology with the aim
of making agriculture online for the use of farmers, exporters, and traders, etc.
Weakness
One of the major weaknesses present for the agricultural sector in India is in the lack of
government support. Unlike in East Asian countries, the shift of the labor force from
agriculture to non-agriculture in India is peculiarly slow, largely attributable to rigid
labor laws in both the agricultural and industrial sectors. Gliessman (1989) also
highlights the need for pressing on with reforms in agriculture, in particular, trade
liberalization and export promotion strategies. Becker and et al. (1992) also claim that
though India spends on agriculture nearly twice as much as some East Asian economies,
this level of spending on agriculture does not translate into a significantly higher
sectoral performance. Inadequate road linkages also remain a major constrain for the
development of well- functioning agricultural markets. A continuing fragmentation of
land-holdings, poor maintenance of existing irrigation systems and declining soil fertility
37
in some areas are other factors. Another weakness is based on seasonality and the fact
that agricultural sector output heavily depends on the annual monsoon, as less than
one-third of cropland is irrigated. The main food grain crops, for example, and some
cash crops (oilseeds, cotton,
jute and sugar) depend on the south-west monsoon (This brings 80% of India's rain,
usually within a three-month period from June to mid-September. The 2002 south-west
monsoon was disastrous, causing the autumn grain harvest to fall by 18% year on year.
In 2004 the sector stagnated in comparison to the previous year when the best
monsoon rains in a decade generated growth of around 10% in the agricultural sector.
Excessive rainfall in 2005 caused severe flooding in Maharashtra.
Opportunities
A growing population, rapid economic development, and political and social demands
exceed the mandate and capabilities of any corporation in an emerging economy, and
India is no exception to this. A growing population has made industrial development one
of the Indian government's highest policy priorities; it is an important element of
economic development as it assists in raising national income at a more rapid pace. It is
also a precondition for continued agricultural development. Palmer-Jones and Sen
(2003) state that the government continues to play a major role in assisting farmers
through agricultural credits, subsidies, price support schemes and extension services.
Although there are no food security concerns at present, better agricultural productivity
will hold the key to stable growth in food production, given the limits of the resource
base. There is an opportunity for the economic growth to benefit more people only if
the country raises agricultural productivity, improves its system of general education to
help the millions who must leave farming, and encourages labor intensive
manufacturing industries.
38
Threats
About one-fifth of the country, 69m, is covered by forests and woodland, and one-half
of this area is reserved for the production of timber and other forestry products.
However, there are increasing concerns from environmentalists and local government
over the rapid depletion of forest areas, ecological factors, and scarcity of natural
resources. As income rises, India is becoming an increasingly important market for
processed foods, especially in the cities and among young people. Aware of quality and
international brands, consumers are less likely to support national products, and are
more vulnerable to pay premium prices for foreign products of better quality. This
represents a potential substitution to the local products, impacting the production
levels of agriculture sector. Food support prices for wheat and rice have given farmers
little incentive to diversify and have filled government storage facilities to overflowing,
while keeping the market price of food grains artificially high. Current agricultural policy,
which supports cereal production, is exceedingly expensive and will be unable to deal
with the likely scenario of a shift in consumption from cereal food towards non-cereal
food. A lack of market infrastructure also hampers the movement of crops, leading to
sudden shortages. India has considerable potential as an exporter of rice, cotton, many
types of fruit and even flowers, but this has so far not been tapped (Yeoh and Siang,
2006). The introduction of high-yield crop varieties and new fertilizing and irrigation
techniques over recent decades ' the so-called Green Revolution ' dramatically increased
productivity in some regions. India has been self-sufficient in food since the mid-1970s,
maintaining buffer stocks adequate to meet demand despite failed harvests and
seasonal fluctuations.
39
Strengths
Weaknesses
Opportunities
Large crop and material base offering a vast potential for agro processing
activities
Setting of SEZ/AEZ and food parks for providing added incentive to develop
Greenfield projects
Rising income levels and changing consumption patterns
Favorable demographic profile and changing lifestyles
Integration of development in contemporary technologies such as electronics,
material science, bio-technology etc. offer vast scope for rapid improvement and
progress
Opening of global markets
40
Threats
41
Agriculture in Goa
Introduction:
Goa is a tiny State located on West Coast of India, spread over in an area of 3.61 sq. km.
The State is flanked on the east by Sahyadri Mountains and on the West with Arabian
Sea. The Northern tip of Goa borders Maharashtra State while Southern area is
bordered by Karnataka State. Goa is a rich treasure of biodiversity. The State of Goa was
ruled by Portuguese for nearly 450 years till it was liberated in 1961. For last 50 years of
Liberation, the State has made a remarkable progress in agriculture sector besides
various other spheres of economic upliftment. The GSDP of Goa stands at Rs. 80,000
per annum. Though tourism and mining are at forefront in terms of employment
generation, agriculture has been providing livelihood support to almost 12% of the
population. The Agriculture along with Forests in Goa is instrumental in keeping Goa
green and cover nearly 6 5% of the total area of the State.
In the last fifty year of liberation, the State has seen major changes in the agriculture
sector. At the time of liberation, nearly 70% of the population was involved in
agriculture as their full time occupation. Paddy was the predominant crop of the State
followed by Cashew and Coconut. The cropping pattern is changing and today, we have
Cashewnut which is cultivated in nearly 55,000 Ha with paddy covering about 31,000
Ha. The cultivation of horticultural crops is gaining importance due to the better returns,
lower risk and tolerance of these crops for part time farming.
Humidity:
The average relative humidity is 75.90%.
Altitude:
In Goa, the land elevation ranges from sea level to 1,022 meters. The highest point is
the Wagheri Hills in Sattari taluka. The Ghat section of NH-4, rises to 650 meters MSL
near Anmod.
Soils:
The soils of Goa are mostly lateritic (81%). They are sandy loam to silt-loam texture,
well drained and highly acidic (5.5 to 6 .5 pH). These soils have moderate organic carbon
and are poor in potash.
About 11% of the soils located along the seacoast and esturaries are sandy-to-sandy
learns. They include the Ker lands and beach fronts. The remaining 8% of the soils are
alluvial in nature. The Khazans and adjoining areas have alluvial soil with high water
tables and are subject to inundation by saline water.
43
44
Threats
Economic growth has also seen a number of structural changes in Goa. There has been a
growing inequality in the State and this needs long-term policy solutions. The decline in
nutritional status both due to higher prices during some peak tourist season and
lifestyle changes also needs to be taken note of.
The declining sex ratio is a matter of grave concern. There is growing incidence of
suicides, violence and crime especially against women, senior citizens and children
which needs to be addressed.
As incomes in the State have grown, so has vehicular traffic. Inadequate traffic
supervision of vehicles and road rage is leading to a large number of casualties and fatal
accidents on Goas roads.
45
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47