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INDIAN AGRICULTURE & RURAL MARKETING Present Status & the Potential Abdul Ali MBA Agribusiness

Indian agriculture

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  • 1. INDIAN AGRICULTURE& RURAL MARKETING Present Status & the Potential Abdul Ali MBA Agribusiness

2. INDIA TODAY & TOMORROW

  • Self Reliance
  • Heading towards world leadership in food & agriculture
  • High input cost and low mechanization
  • Use of heavy doses of inorganic fertilizers
  • Low productivity based production
  • Food for others
  • World leader in food & agriculture
  • Low input cost and high mechanization
  • Organic through Vedic kheti
  • High productivity based production

3. USA JAPAN FRANCEGERMANY UK INDIA BY 2020 SOMEDESERT COUNTRIES INDIACHINABRAZILINDONESIA MEXICO MALAYSIA H I G HT E C H N O L O G Y L O WPOOR BIODIVERSITY RICH Biodiversity- Technology- Prosperity Matrix 4. Agro-Food:Fruit & Vegetables

  • CORE TECHNOLOGIES
  • COLD CHAINS
  • PACKAGING
  • PROCESSING
  • ASEPTIC PACKING
  • CA/ MA CONTAINERS
  • WEIGHING AND SENSING
  • EQUIPMENT

SOURCE:INDIA: 2020, A VISION FOR THE NEW MILLENNIUM BYKALAM ABDUL, A.P.J.&RAJAN, Y.S .

  • 1995
  • Vol: 33 & 71 Million Tonnes
  • BUSINESS
  • Rs 10000 cr/yr &
  • Rs 15000 cr/yr
  • LOSSES:
  • 6250cr/yr
  • RELATED INDUSTRIES
  • Rs 2500 cr/yr
  • CHILLING
  • PACKAGING
  • VALUE ADDITION

2020 Vol: 90 & 150 Million Tonnes * BUSINESS Rs. 27000 cr/yr & Rs. 32000 cr/yr* LOSSES Rs. 5900cr/yr * OTHER BUSINESS Rs. 25200cr/yr 5. Envisioning an Empowered Nation

  • * Vol:
  • 61 mil MT
  • * Business :
  • 61000 cr/yr
  • * Losses:
  • 3050 cr/yr
  • * Related industries:
  • 31000 cr/yr
  • Chilling
  • Packaging
  • Value addition

COLD CHAIN CRYO FLUDS CONTAINERASEPTIC PACKAGINGFODDERS ELECTRONICTESTING MACHINES HYGENIC TRG. WASTE REDUCTION

  • * Vol:
  • 300 mil MT
  • * Business:
  • 300000 cr/yr
  • * Losses:
  • 3000 cr/yr
  • * Related industries:
  • 31000 cr/yr
  • Chilling
  • Packaging
  • New addition

AGRO FOOD MILK PRESENTCORE TECHNOLOGIESYEAR 2020 6. Envisioning an Empowered Nation

  • * Vol:
  • 33 and 71mil tonnes
  • * Business :
  • 10000 cr/yr and
  • 15000 cr/yr
  • * Losses:
  • 6250 cr/yr
  • * Related industries:
  • Rs. 2500 cr/yr
  • Chilling
  • Packaging
  • Value addition

COLD CHAINS PACKAGINGPROCESSINGASEPTICPACKAGINGCA /MA CONTAINERS WEIGHTING & SENSINGEQUIPMENT

  • * Vol:
  • 90 and 150 mil tonnes
  • * Business:
  • 27000 cr/yr and
  • 32000 cr/yr
  • * Losses:
  • 5900 cr/yr
  • *Related industries :
  • Rs. 25200 cr/yr
  • Chilling
  • Packaging
  • New addition

AGRO FOOD FRUIT & VEGETABLES PRESENTCORE TECHNOLOGIESYEAR 2020 7. Envisioning an Empowered Nation

  • Vol:
  • 200 mil MT
  • *Business :
  • 90000 cr/yr
  • Losses:
  • 9000 cr/yr
  • *Related industries:
  • 9000 cr/yr
  • Packaging
  • Value addition

PEST/RODENT CONTROL HANDLINGEQUIPMENTSELECTRONICSENSORS(MOISTURE ETC.) STORAGEPACKAGING

  • Vol:
  • 360 mil MT
  • *Business:
  • 150000 cr/yr
  • Losses:
  • 3000 cr/yr
  • *Related industries:
  • 86100 cr/yr
  • Chilling
  • Packaging
  • New addition

AGRO FOOD CEREAL PRESENTCORE TECHNOLOGIESYEAR 2020 8. EXISTING VALUE CHAIN FARMER Local Traders Consolidator Wholesale Commission Agent Wholesaler Retailers CONSUMER Fruits & Vegetable Marketing Chain in U.P. 9. FarmFarm Village Agent Abdul Aharati 20%Retailer 100-200% FactoryAbdul RetailerDistributor.C&FFactory 20% 35-50% EXISTING VALUE CHAIN VS FOOD MART HappyUsualConsumerConsumer && FarmerFarmer 10. AGRICULTURE IN INDIA

  • Over 700 million people i.e.69% of thepopulation depends upon the rural economy for their livelihood.
  • Large number of rural population lives on USD 175 per capita in comparison to the average National per capita income of USD 480.
  • Though, India is the second largest producer in agriculture produce in the world but yields are still very low.

11. INDIAN AGRICULTURE-STRENGTH

  • ITEMSRANKSHAREPRODUCTION
  • ( In Mill.Tonnes)
  • IndiaWorld
  • TEAI27.0%0.752.99
  • MilkI12.0%73.10568.48
  • Cattle Pop.I14.8%218.801350.00
  • Sugar caneII12.2%315.101278.00
  • FruitsII11.6%49.19475.14
  • VegetablesII12.0%61.69670.59
  • PaddyII21.3%134.15598.85
  • WheatII10.7%74.25576.31

12. INEFFICIENCIES OF INDIAN AGRICULTURE

  • Indian wastes more fruits & vegetables than are consumed in UK
  • Cumulative waste is about $ 6.7 billion which is equivalent to 40% of the total horticulture produce
  • Poor infrastructure and logistics support
  • Rough and unorganized handling
  • India has 70% more arable land but produces 30% less than China

13. FOOD PROCESSING INDUSTRY IN INDIA

  • Indian wastes more fruits & vegetables than are consumed in UK
  • Cumulative waste is about $ 6.7 billion which is equivalent to 40% of the total horticulture produce
  • Poor infrastructure and logistics support
  • Rough and unorganized handling
  • India has 70% more arable land but produces 30% less than China

14. FOOD PROCESSING INDUSTRY Major Challenges

  • Awareness about processed foods
  • Backward and forward linkages
  • Marketing network
  • Cold chain and supply logistics
  • Lack of linkages with Industries, Government and Institutions
  • Taxation in line with other Nations
  • Complex Food Laws

15. Indian Food Processing Industry Shortcomings

  • The small players who are unorganized are about 70% and accounts for about 50% of the value.
  • The organized is small butis growing.
  • Indias share in global scenario is about 2% which is insignificant.
  • No Indian brands have global presence.
  • Most of the exports are in bulk and lack branding.
  • Mostly units are involved in primary value addition .The secondary and tertiary value addition units are minimal resulting low value addition.
  • Lots of wastage due to post harvest looses.

16. Indian Food Processing Industry Outlook

  • Fruits & Vegetable processing which is about 2% and expected to grow by 10% by 2010 and 35% by 2025(MOFPI).
  • MOFPI estimates the size of food processingRs 3105 Billion including Rs 990 billion of value added products.
  • Food processing Industry is estimated to grow by 9-12% on the basis of the GDP growth rate of 6-8%.

17. POTENTIAL FOR RURAL MARKETING

  • Untapped Rural Potential
  • -6,27,000 villages across country
  • -Account of 70% of population
  • -60% of National demandfor various
  • product categories
  • There are almost twice as many lower middle
  • income households in rural areas as in the urban
  • areas.

18. Four As of Rural Marketing

  • Availability- Place
  • Affordability - Price
  • Acceptability - Product
  • Awareness- Promotion

19. Current Concerns

  • Pressure of the Population on Land
  • Skewed distribution of operational holdings
  • Land Degradation
  • Water Balance
  • Low level of mechanization
  • Low Fertilizer Consumption

20. EXECUTION

  • Food Mart - Village Panchyat level
  • Agri Mart- Block level
  • Kissan- Village level

21. PROPOSED MODEL

  • THREE WAYMODEL
  • -Food Mart - For selling Food Stuff
  • -Agri Mart- For selling agri-inputs
  • -Kissan- For various other two-way linkages

22. URGENT ISSUES TO BE RESOLVED

  • THREE ACTIVITYMODEL
  • -Food Mart - For selling Food Stuff
  • -Agri Mart- For selling agri-inputs
  • -Kissan- For various other two-way linkages

23. TOOLS FOR RURAL MARKETING

  • Stationary Outlets by using local raw material
  • Pota cabin based stationary outlets
  • Mobile Retail Outlets mounted on Truck, Pick up and Auto Riksha and Cycle Riksha
  • Fuel Stations based retail outlets
  • Integration of the activities

24. INTERVENTIONS FROM GOVT .

  • Timely Availability of support for various activities through one single agency
  • Availability of loans from Banks as per RBI guidelines
  • Infrastructure availability through NHM,RKVY,NFSM, and other schemes of Rural Development Department.
  • Promotion of private public partnership and ensure that they run smoothly.
  • Promotion of community farming
  • Provision for seed capital, additional subsidy from state Govt., clear policies and tax laws.

25. THANKS FOR YOURATTENTION