Agriculture Sector in India July 2013

8/22/2019 Agriculture Sector in India July 2013

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AgricultureSectorinIndia

MonthlyUpdate

July2013


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AgricultureMonthlyUpdate

TopStory

Bhoochetana

agri

schemes

to

cover

21

districts

in

Andhra

Bhoochetana scheme, having an aim to boost the agriculture productivity with

technological support from ICRISAT, targets to cover 0.3 mn hectares rainfed area of 21

districts of Andhra Pradesh during the ongoing rainy season. The scheme was launched by

the Andhra Pradesh state government in collaboration with ICRISAT. The Bhoochetana

project started with 70,000 hectares land covering seven districts of Andhra Pradesh. The

project has seen a yield increase of 2058 percent of various crops. The project has benefited

over 0.45 mn farmers so far, who have seen rise in farm incomes by 25 percent.

It has been decided by the ICRISAT that 14 districts will have 500 hectares block and 7

districts will have 100 hectares block for demonstration purpose.

There have been enquires to start Bhoochetana project in Uttar Pradesh and Tamil Nadu

and some countries in Asia and SubSaharan Africa. The project basically focuses on crops

such as maize, groundnut, sorghum, sunflower, chickpea, paddy, soyabean, sugarcane and

cotton in Andhra Pradesh. It has been noticed that farmers income has increased by INR

10,00012,000 per hectare for the crop such as cotton.

NewsUpdate

General

GovernmentofAssamplanstopromoteroof-topvegetablegardening

The Assam government has taken an initiative to promote rooftop vegetable gardening for

urban residents with an aim to increase production of fresh vegetables. At the first stage of

the initiatives government will offer some packages to the selected urban citizens of

Guwahati & Jorhat, later extend it to other urban areas of the state. The Directorate of

Horticulture and Food Processing has already developed different structures for rooftop

vegetable gardening and would conduct workshops to encourage people.

PunjabtogetINR750mnfromCentralgovernment

The Central government has sanctioned INR 750 mn for the state of Punjab to boost thestates horticulture under the National Horticulture Mission. The fund would be used for

setting up orchards, floriculture and beekeeping activities, installation of community water

tanks, greenhouses, cold stores and pack houses. Two centers of excellence will be

developed by the Punjab Mandi Board in sync with the IndoIsrael agreement at Khanaura in

Hoshiarpur and Kartarpur in Jalandhar district.


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Moreover, the government has also planned to provide plastic crates to the cultivators to

increase the shelf life of fruits and vegetables under the Rashtriya Krishi Vikas Yojana

(RKVY) at a cost of INR 15 mn.

Presently, Punjab has about 2,060 hectares land under the commercial floriculture, 0.2 mn

hectares land under vegetable cultivation and about 71,000 hectares of land under fruit

cultivation.

BARCislikelytosetup3processingplantsBhabha Atomic Research Center is going to set up three multi product radiation processing

technology demonstration plants for high yielding varieties of basmati, potato, and other

alternate crops in Punjab. BARC would provide technology and engineering support for

setting up of these plants which would also process onions, wheat, suji, maida, spices and

other commodities.

BARC will also set up an Isotope Laboratory to carry the groundwater examination at Mohali.

It will be able to detect the uranium, arsenic, phosphorous presence in ground water. BARC

will also assist the state in long term field testing and demonstration of membranebased

water purification technologies for domestic water purification, cycle mounted water

purification and community size water purification. Bhabha Atomic Research Center agreed

to install this technology on a tube well in Ludhiana city and in one of the governments

schools in Sri Muktsar Sahib district.

AgricultureministeragainsttheonionexportbanAgriculture minister Mr. Sharad Pawar is not in favor of ban on onion export. Although, onion

price is at an increasing trend, Mr Power has opined that it is a temporary phenomenonoccurred due to heavy rain fall in major onion producing states such as Maharashtra.

India has increased its exports to INR 2.33 tr during 201213 fiscal from INR 1.86 tr in the

previous year. Both consumer affairs and ministry of commerce are willing to ban onion

export for short run to curb the domestic price of onions.

Retail price of onion has augmented to INR 3540 per kg across India, while the whole sale

price of onion has also increased to INR 25 per kg at Lasalgoan in Maharashtra.

Governmentislikelytoreleasefoodgrainstocktocurbinflation

The Indian government has planned to release food grains from their stock to control thesoaring food prices. The government is also contemplating to launch a system that will

regulate the export and import duty of onion and potato whose prices are fluctuating. Central

government is also discussing with the state governments on how to reduce the wastage of

horticulture produce as they rot during the peak season.

The government has promulgated an ordinance to implement the Food Security Bill earlier

this July. If the bill gets passed then the government will give 25 kgs food grains, including


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rice, wheat and millet, at INR 3, INR 2, and INR 1 a kg respectively, a month depending on the

need, which will be a legal right for people below the poverty line.

Nabardto

give

INR

50

bn

to

the

private

grain

players

Now private players can avail soft loan up to INR 50 bn for warehousing from Nabard as food

security bill demands to increase the grain storage capacity. It was said in the 12th financial

plan that there is a requirement of 35 mn tones of additional storage capacity in all over

India. On an average an investment of INR 4,000 is required for creating 1 ton storage space.

Nabard will finance construction of warehouses, godowns, silos and cold storage units.

Initially, the scheme was limited to the states or staterun entities. Food security bill,

implemented by the government, ensures that the nations two thirds population will get 5kg

food grain per month at a subsidized rate of INR 13 per kg.

ICARwas

asked

to

give

clarity

on

safety

concerns

of

GM

crops

The President of India, Mr. Pranab Mukherjee, said on the 85th ICAR foundation day that the

genetically modified crops are definitely a great invention by the Indian Council for

Agriculture Research, but the agro research body needs to provide a clarity on safety

concerns of these crops.

The government has allowed commercial cultivation of Bt cotton while suspension has been

put on Bt brinjal. Private companies are allowed to conduct a field trial of GM crops such as

cotton, corn and maize in Punjab, Haryana, Andhra Pradesh and Gujarat respectively. The

President also said that India is on the way of becoming a food surplus country from the food

deficient country but warned that climate change poses a major challenge to agriculture and

the country must chalk out a climate resilient development strategy.

India-basedseedcompanyMahycoboughtUS-basedArcadiastechnologyMaharashtrabased seed company Mahyco Seeds has bought technology from USbased

agricultural technology company Arcadia Biosciences with an aim to develop Nitrogen Use

Efficient rice in India. An agreement was signed by both the companies in 2008. NUE

technology significantly increases plant growth and yield in multiple rice lines developed by

the company. Arcadia president and CEO, Eric Rey said that NUE technology is an important

step towards improving food security.

Mahyco Seed in collaboration withArcadia Biosciences Inc invented Nitrogen Use

Efficientrice

Mahyco Seed and Arcadia Biosciences Inc jointly have developed Nitrogen Use Efficient

(NUE) rice. Arcadias NUE technology claims that it can reduce the need for nitrogen

fertilizers. Arcadia Biosciences is an agricultural technology company. The company is based

at Davis in California. NUE technology can increase the plant growth and yield.

Rice is the world's secondlargest crop, grown on 160 mn hectares annually. India has the

world's largest rice growing area, with more than 44 mn hectares grown annually. Apart


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from NUE rice, the firms are also working on a number of other technologies and crops to

augment farm productivity.

Opensea

cage

farming

to

get

promoted

by

Siddis

A cooperative model for open sea cage farming is being promoted by Siddis of African origin

in Veraval of Gujarat. The project is all set to get a technological push with the Central Marine

Fisheries Research Institute (CMFRI) lending its resources for the seed production of two

types of mullet. The initiative has been taken to move from traditional fishing to anglers just

to reduce the pressure on fishing. About 20 siddi families have formed a society called

Bharat Adin Jyot Matsya Udyog Mandali to launch open sea cage lobster farming with the

support from central agencies.

The initiative has been taken to boost the financial status of the tribe members. Fish are

raised commercially in tanks or enclosures in fish farming. CMFRI is trying to introduce

standardized technology for seed production of two marine fish Cobia and Pompanorespectively. Cobia, a high end fish, is mainly exported to the MiddleEast, US and European

market in the form of fillets.

NewsUpdate

RegulatoryChhattisgarhfarmerstogetINR16bncroploans

Chhattisgarh is blessed with wide spread monsoon across the state and it has boosted thestates farming activities. Moreover, the farmers of the state got crop loans of INR 16 bn in

kharifrabi season from the government.

The government has planned to provide crop loans worth INR 30 bn to the farmers through

primary cooperative societies at a rate of 1 per cent interest per annum this year. Interest

rate was lowered to boost the lending activity by the farmers. In view of the performance and

credit requirement of the primary agriculture cooperative societies, this year the amount of

the farm credit has been raised.

IndustryExpert Speak

Government to release food grain stock K V Thomas, Union Minister ofStateforConsumerAffairsandFoodandPublicDistribution"In the last few years the minimum support price has doubled. The consumption pattern has

also changed along with rise in price of petroleum and petroleum products. So to bring down

the price of food, the EGoM will analyse the situation and take action that will help ease the


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situation. We may even release food grains from the government stocks to control the food

inflation."

Transactions(May2013July2013)

Date Buyer TargetDealSize

(INRmn)%stake DealStatus

Typeof

Transaction

22ndJuly,

2013Quadria India

Capricorn FoodProducts India

Ltd.

600 N.A Completed PE

11th July,2013 Zuari Fertilizers

Mangalore

Chemicals &Fertilizers Ltd.

N.A 13.5% Completed M & A

8th July,2013

Gail India LtdRashtriya

Chemicals &

Fertilizers Ltd.

N.A 510% Expected M & A

4th July,2013

DeepakFertilizers &

Petrochemicals

MangaloreChemicals and

Fertilizers1790 24.5% Completed M & A

5th June,

2013

Ruchi Soya

Industries

JOils Mills Inc.Toyota Tsusho

CorporationN.A 51% Expected JV

AnnualFinancialResultsRevenue(INRmn)

Companies FY10 FY11 FY12 FY13

Deepak Fertilizers &Petrochemicals Corporation

13,293.00 16,279.00 24,115.70 26,599.6

Southern PetrochemicalIndustries Corporation Ltd.

11,557.4 13,362.2 27,400.5 23565.6

The Fertilizers and ChemicalsTravancore Ltd. 21,059.6 24,607.6 28,760.8 26,948.9

Mangalore Chemicals &Fertilizers Ltd.

20,877.20 25,204.60 37,071.80 27,795.9

Gujarat Narmada Valley

Fertilizers Company Ltd.26,144.5 28,458.9 38,620.1 42,525.7

Escorts Group 33,663.10 41,049.20 40,024.90 N.A


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Jain Irrigation System Ltd 34,348.0 41,745.6 49,384.6 49,168.8

DCM Shriram Consolidated

Ltd.

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

Gujarat State Fertilizers &Chemicals Ltd

40,191.9 47,550.5 53,018.3 62,533

National Fertilizers Ltd 51,031.60 57,910.30 73,052.90 67,202.3

Chambal Fertilizers &Chemicals Ltd

41,335.60 56,856.50 75,381.70 81,986.6

United Phosphorus Ltd. 53,387.30 57,606.80 76,547.20 90,102.2

Coromandel International

Limited64,066.00 75,578.20 98,318.40 90,302.5

Tata Chemicals Ltd. 95,435.5 110,605.8 138,060.6 1,47,186.3

ITC Ltd. 191,358.70 225,747.00 265,517.90 3,16,275.4

Mahindra and Mahindra

(M&M)316,879.70 370,695.70 596,433.20 6,73,539.5

Madras Fertilizers Ltd. 13,028.40 16,312.40 22,148.10 23,462.9

Rallis India Ltd. 8,786.80 10,919.50 12,782.70 1,4400.9

Bayer CropScience Ltd 16,260.30 21,373.00 22,747.00 26,260

Ballarampur Chini Mills Ltd. N.A 19843.8 23095.5 32,748.4

Bajaj Hindusthan Limited N.A 32261 50634.7 43,440.6

*ChangeinFinancialYearEnding

AnnualFinancialResultsIncome(INRmn)

Companies FY10 FY11 FY12 FY13


1,652.50 1,875.20 2,117.00 1293.1

Southern Petrochemical

Industries Corporation Ltd.1,021.80 6,259.40 21.80 10,997.5


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The Fertilizers and Chemicals

Travancore Ltd.1,038.40 493.30 198.00 1760

Mangalore Chemicals &

Fertilizers Ltd.

535.70 775.4 691 665.7

Gujarat Narmada ValleyFertilizers Company Ltd.

1,238.4 2,665.3 2,838.4 2731.1

Escorts Group 1,320.00 1,263.90 738.10 N.A

Jain Irrigation System Ltd 2,475.90 2,807.10 2,235.00 30.8

DCM Shriram ConsolidatedLtd.

842.50 142.70 119.20 2028.9

Gujarat State Fertilizers &

Chemicals Ltd2,544.7 7,493.7 7,575.7 5,181.0

Rashtriya Chemicals &Fertilizers Ltd.

2,343.20 2,447.10 2,488.30 2726.7

National Fertilizers Ltd 1,715.10 1,385.00 1,267.30 1707

Chambal Fertilizers &

Chemicals Ltd2,172.30 2,405.90 1,583.10 2385.2

United Phosphorus Ltd. 5,576.20 5,555.50 6,980.70 7746


Limited4,676.8 6,936.6 6,387.9 4,319.9

Tata Chemicals Ltd. 6,534.70 8,375.90 7,269.40 4004

ITC Ltd. 41,681.80 50,179.30 62,581.40 76080.7


(M&M)30,797.30 31,266.60 37,124.00 40992.

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

Rallis India Ltd. 1,260.40 991.8 1,176.40 1190.2

Bayer CropScience Ltd 1,316.00 1,390.00 10,683.00 11617

Ballarampur Chini Mills Ltd. N.A 1084.6 4.3 1,613.0

Bajaj Hindusthan Limited 440.3 214.5 3201.1 N.A

*ChangeinFinancialYearEnding


9/12


QuarterlyFinancialResultsRevenue(INRmn)

Companies

Apr-Jun

2012

Jul-Sep

2012

Oct-Dec

2012

Jan- Mar

2013


N.A. N.A. N.A. N.A


N.A. N.A. N.A. N.A

The Fertilizers and ChemicalsTravancore Ltd.

5,210.60 7,124.10 6,767.20 N.A

Mangalore Chemicals &

Fertilizers Ltd.5,991.90 8,390.60 6,929.70 6498


Fertilizers Company Ltd.

8,709.30 11,657.70 11,192.00 10966.6

Escorts Group N.A. N.A. N.A. N.A

Jain Irrigation System Ltd N.A. N.A. N.A. N.A

DCM Shriram ConsolidatedLtd.

N.A 13,390.80 13,370.60 14172.7

Gujarat State Fertilizers &Chemicals Ltd

8709.3 11657.7 11192 10966.6

Rashtriya Chemicals &Fertilizers Ltd.

N.A. N.A. N.A. N.A

National Fertilizers Ltd 18,066.60 19,465.70 18,183.80 11486.2


N.A. N.A. N.A. N.A

United Phosphorus Ltd. 362.5 299.6 375 491.7


Limited18427.6 26,606.00 24,009.30 21259.6

Tata Chemicals Ltd. 30,208.90 41,655.10 41,704.60 33617.7

ITC Ltd. N.A. N.A. N.A. N.A

Mahindra and Mahindra(M&M)

176,708.10 92,525.80 102,425.70 389802.9

Madras Fertilizers Ltd. 5,135.30 6,683.60 7,644.70 5,547.7

Rallis India Ltd. 3,383.10 4,806.20 3,398.10 2786.5


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Bayer CropScience Ltd 8,994.40 8,265.60 5,591.00 3674

Ballarampur Chini Mills Ltd. N.A N.A N.A N.A

Bajaj Hindusthan Limited N.A N.A N.A N.A

*Changeinquarter

QuarterlyFinancialResultsIncome(INRmn)

CompaniesApr-Jun

2012

Jul-Sep

2012

Oct-Dec

2012

Jan- Mar

2013

Deepak Fertilizers &

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


N.A. N.A. N.A. N.A

The Fertilizers and Chemicals

Travancore Ltd.1,041.50 262.60 798.1 N.A

Mangalore Chemicals &Fertilizers Ltd.

125.00 564.2 58 168.4


Fertilizers Company Ltd.327.4 723.8 1,007.30 672.6

Escorts Group N.A. N.A. N.A. N.A

Jain Irrigation System Ltd N.A. N.A. N.A. N.A

Rashtriya Chemicals &

Fertilizers Ltd.N.A. N.A. N.A. N.A

National Fertilizers Ltd 520.1 7.4 124.2 1070.4


N.A. N.A. N.A. N.A

United Phosphorus Ltd. 33.7 19.9 28.8 46.3

Coromandel InternationalLimited

1,150.5 2,368.8 683.9 116.7

Tata Chemicals Ltd. 1,075.90 2,567.70 2,240.70 1880.3

ITC Ltd. N.A. N.A. N.A. N.A


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(M&M)10,263.60 9,780.90 9,149.50 14276.9

Madras Fertilizers Ltd. 189.7 428.7 272.1 351.6

Rallis India Ltd. 241.7 615.6 220.3 112.6

Bayer CropScience Ltd 887.4 978.5 9,034.00 718

Ballarampur Chini Mills Ltd. N.A N.A N.A N.A

Bajaj Hindusthan Limited N.A N.A N.A N.A

*Changeinquarter

EventsCalendar

AgriTechIndia2013

Date: 23rd 25th Aug 2013Venue: Bangalore International ExhibitionComplex

City: BangaloreContact No: 911126682045

Organizer: Media Today Group

Website:www.agritechindia.com/index.html

GrainTechIndia

Date: 23rd 25th Aug 2013Venue: Bangalore International ExhibitionCenter

City: BangaloreContact No: 911126681671

Organizer: Media Today P.Ltd

Website:www.biztradeshows.com/trade

events/graintechindia.html


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Agriculture Sector in India July 2013