Emerging Markets Insight - India Transportation and Infrastructure Sector Report Segmentation

8/12/2019 Emerging Markets Insight - India Transportation and Infrastructure Sector Report Segmentation

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AgricultureSector

IndiaApril 2014

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II. Farming

Indias fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.

The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.

In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by

the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or

what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this repor t appear as provided by the source.



3/27



Source:

Output

Comments

Product-wise farming output

Farming output (constant prices FY2004-2005)

Farming output, current prices

CEIC

High product prices push up farming output in nominal terms

and result in two-digit annual growth rates. The increase in the

output quantities is however moderate and varies among

products.

Most of the farming output comes from cereals, followed by

fruits and vegetables.

5,861

6,8167,570

8,588

10,519

12.0%

16.3%

11.6% 11.6% 11.6%

2006 2007 2008 2009 2010

Output, INR bn Change yoy, %

5,031

5,3265,250 5,241

5,761

3.8%

5.9%

-1.4%-0.2%

9.9%

2006 2007 2008 2009 2010

Output, INR bn Change yoy, %

Cereals 28.6%

Fruits andVegetables

23.9%

Oilseeds 9.5%Fibres 6.6% Sugar 6.5%

Other Crops6.0%

Pulses 4.8%

Spices 4.4%

Coffee, Tea,Tabacco 3.5%

Others 6.2%



4/27



Source:

Sown Area

Total sown area

Farm Crops Planting Structure Comments

CEIC

There hasnt been substantial change in the sown area inIndia, the total acreage standing at about 120-127 mn ha.

About 60% (ca. 70 mn ha) of the area is sown with kharifcrop (planted for autumn harvest, also called summer ormonsoon crop), the remaining 40% - with rabi (crop sownin winter and harvested in the spring).

About 60% of the cropped area is rainfed, i.e. subject toweather conditions, which hinders the realization ofmaximum yield.

123

.2

122

.8

123

.9

121

.0 123

.6

123

.9

125

.2

123

.1

121

.1

122

.8

113

.9

123

120

.1

121

.6123

.7

124

.1

122

.9

121

.3126

.7

124

.8

120

.2

1.1% -0.3%0.9%

-2.3%

2.1%0.2%

1.1%

-1.6% -1.7%

1.4%

-7.3%

8.4%

-2.7%

1.3% 1.7%0.3%

-1.0% -1.2%

4.4%

-1.5%

-3.7%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Area, mn ha Change yoy, %

Coarse cereals22.2%

Main Oilseeds21.4%

Pulses 19.2%

Other CashCrops 12.9%

Others 24.3%



5/27



Source:

Production and Yield

Farming production

Yield

CEIC

179

.5

184

.3

191

.5

180

.4

199

.4

192

.3

203

.6

209

.8

196

.8

212

.9

174

.8 213

.2

198

.4

208

.6

217

.3

230

.8

234

.5

218

.1244

.5

259

.3

255

.4

6.6%2.7% 3.9%

-5.8%

10.5%

-3.6%

5.9%3.0%

-6.2%

8.1%

-17.9%

22.0%

-7.0%

5.2% 4.2%6.2%

1.6%

-7.0%

12.1%

6.0%

-1.5%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Production, mn tonnes Change yoy, %

1,4

57

1,5

01

1,5

46

1,4

91

1,6

14

1,5

52

1,6

27

1,7

04

1,6

26

1,7

34

1,5

35

1,7

27

1,6

52

1,7

15

1,7

56

1,8

60

1,9

09

1,7

98

1,9

30

2,0

78

2,1

25

5.4% 3.0% 3.0%

-3.6%

8.2%

-3.8%

4.8% 4.7%

-4.6%

6.6%

-11.5%

12.5%

-4.3%

3.8% 2.4%

5.9%

2.6%

-5.8%

7.3% 7.7%

2.3%

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

Yield, kg/ha Change yoy, %



6/27



Source:

Food Balance, Targets and Achievement

Target - achieved production for major crops , mn tonnes

Food balance for 2013-2014 marketing year, thou tonnes

CEIC; Ministry of AgricultureAgricultural outlook and situation analysis report Oct-Dec 2013; *marketing year 2014-2015

2008 2009 2010 2011 2012

target achieved diff. target achieved diff. target achieved diff. target achieved diff. target achieved diff.

Rice 97.0 99.2 -2.2 100.5 89.1 11.4 102.0 96.0 6.0 102.0 104.3 -2.3 104.0 104.4 -0.4

Wheat 78.5 80.7 -2.2 79.0 80.8 -1.8 82.0 86.9 -4.9 84.0 93.9 -9.9 88.0 92.5 -4.5

Coearse Cereals 42.0 40.0 2.0 43.1 33.6 9.6 44.0 43.4 0.3 42.0 42.0 0.0 44.0 40.1 3.9

Pulses 15.5 14.6 0.9 16.5 14.7 1.8 16.5 18.2 -1.7 17.0 17.2 -0.2 18.2 18.5 -0.2

Foodgrains 233.0 234.5 -1.5 239.1 218.1 21.0 244.5 244.5 -0.3 245.0 257.4 -12.4 254.2 255.4 -1.1

Oilseeds 31.8 27.7 4.0 31.6 24.9 6.7 33.2 32.5 0.7 33.6 30.0 3.6 33.5 31.0 2.5

Sugarcane 340.0 285.0 55.0 340.0 292.3 47.7 315.0 342.4 -27.4 350.0 357.7 -7.7 352.0 339.0 13.0Cotton 26.0 22.3 3.7 26.0 24.0 2.0 26.0 33.0 -7.0 34.0 35.2 -1.2 35.0 34.0 1.0

Jute and mesta 11.0 10.4 0.6 11.2 11.8 -0.6 11.5 10.6 0.9 12.3 11.6 0.7 12.0 11.3 0.7

Rice Wheat* Maize Pulses Edible oil Sugar Onion Potato

Beginning stock 23,000 1,900 550 1,966 1,643 8,800 657 2,450

Production 160,500 97,500 23,500 19,700 10,000 24,500 18,300 44,800

Imports 0 0 0 3,500 10,300 0 0 0

Total supply 129,500 116,500 24,050 25,164 21,943 33,300 18,967 47,250

Domestic consumption 98,000 92,500 19,850 23,000 19,200 23,000 17,310 44,550

Exports 9,000 4,000 3,000 200 100 2,000 1,000 250

Total Utilisation 107,000 96,500 22,850 23,200 19,300 25,000 18,310 44,800

Ending stock 22,500 20,000 1,200 1,964 2,643 8,300 657 2,450



7/27- 20 -Any redistribution of this information is strictly prohibited.


Comments

Source:

Fertilizers - Consumption

Fertilizers consumption grew at a CAGR of 2.5% in the period 2007-2012. The annual rate of growth has been decelerating since 2008 and

moved to negative territory in the last couple of years.

The highest consumption is in the regions of Andhra Pradesh, Uttar Pradesh and Maharashtra.

Type-wise fertilizer consumption, mn tonnes Region-wise fertilizers consumption, mn tonnes

CEIC

5.5 6.5 6.67.2 7.3

5.5

6.77.2 8.1

9.2 8.6

7.6

7.0

7.47.8

7.9 7.9

8.3

3.2

3.63.6

3.6 3.7

3.80.25

0.260.28

0.31 0.31

0.32

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012

North-EastZone

East Zone

North Zone

West Zone

South Zone

115.3

127.2

135.3

146.3

139.7

128.3

0

5

10

15

20

25

30

2007 2008 2009 2010 2011 2012

Nitrogen Phosphate Potash Consumption kg per hectare





Comments

Source:

FertilizersProduction and Import

Fertilizers production grew at a compound rate of 1.5% in the 2007-2012 period and recorded an annual decline in the last two years.

Thus, the intensive use of fertilizers was not covered by respective increase in production. As a result in 2012 domestic made fertilizers

catered for only 60% of the demand, the share dropping from about 90% in 2002.

Production, mn tonnes Import, mn tonnes

CEIC

10.9

10.9

11.9

12.2

12.3

12.2

3.8

3.5

4.3

4.2

4.1

3.5

2007

2008

2009

2010

2011

2012

Phospate Nitrogen

3.7

3.8

3.4

4.6

5.6

4.8

1.3

3.1

2.8

3.7

4.3

2.8

2.7

3.4

2.9

3.9

2.5

1.6

2007

2008

2009

2010

2011

2012

Potash Phosphate Nitrogen





Comments

Source:

Seeds

Global seed market growth rate decelerated from 11.9% yoy in 2011 to 8.8% in 2012.

India is among the top five players, with market share of about 5%.

Global Seed Market, USD bn Country-wise global seed market breakdown

Global Seed Market Report 2013 - Philipps McDougal

31

3537.6

2010 2011 2012 USA 28%

China 22%

France 6%

Brazil 5%India 5% Japan 3% Germany 3%

Rest of theworld 29%





Source:

Minimum Support Prices

Comments

MSP for rabi season crops (INR per tonne)

MSP for kharif season crops (INR per tonne)

MSP for other crops

Ministry of Agriculture - crop years

Minimum support price (MSP) is a measure introduced by Indiangovernment to protect agriculture producers. MSP is set price at whichthe government purchases the products, whatever their market price is,thus ensuring farmers certain profit. The procured products are latersold to weaker sections of the population throughout India at affordableprices.

The first MSP were introduced in the late 60s for the purchase of wheat,but have thereafter spread over 25 main crops (14 kharif crops; 7 rabicrops and 4 others).

Prices are introduces at the beginning of every harvest season i.e.

August and December.MSP are constantly increasing, thus supporting the food inflation in thecountry.

11

,000

7,8

00

21

,000

22

,500

18

,500

18

,000

12

,850

9,8

00

28

,000

28

,000

25

,000

25

,000

13

,500

9,8

00

30

,000

29

,000

30

,000

28

,000

14

,000

11

,000

31

,000

29

,500

30

,500

30

,000

Wheat Barley Gram Masur Rapeseed/Mustard

Safflower

2011-2012 2012-2013 2013-2014 2014-2015

8,8

00

8,8

00

25

,000

30

,000

23

,500

14

,400

9,8

00

9,8

00

28

,000

33

,000

28

,000

16

,900

15

,000

11

,750

36

,000

39

,000

37

,000

22

,400

15

,000

13

,100

37

,000

40

,000

40

,000

25

,600

Jowar(Hybrid)

Maize Cottonmedium

staple

Cotton longsstaple

Groundnut SoyabeanYellow

2010-2011 2011-2012 2012-2013 2013-2014

44

,500

47

,750

15

,750

1,3

91

45

,250

53

,500

16

,750

1,4

50

51

,000

53

,500

22

,000

1,7

00

52

,500

55

,000

24

,000

2,2

00

Copra (millling) Copra (Ball) Jute Sugarcane

2011-2012 2012-2013 2013-2014 2014-2015





Source:

Cereals

Sown area (5 year average) and yield

Comments

Production (mn tonnes)

CEIC; Kharif crop-summer crop; Rabi crop- winter crop; Sorghum-Jowar

Due to the specific climate of the country, two harvests arepossible. The fist in the monsoon season (summer harvest) and

the secondin the winter. Although the output is largely

dependent on the weather conditions, the two harvests often

offset each other.

28.9 29.2 28.5 28.3 28.2 27.7

1,1421,231 1,277

1,2901,364

1,444

2006 2007 2008 2009 2010 2011

Sown area, mn ha Yield, kg/ha

2007 2008 2009 2010 2011 2012

Rice Kharif 82.7 84.9 75.9 80.7 92.8 92.4

Rice Rabi 14.0 14.3 13.2 15.3 12.5 12.9

Jowar Kharif 4.1 3.1 2.8 3.4 3.3 2.8

Jowar 7.9 7.2 6.7 7.0 6.0 5.3

Maize Kharif 15.1 14.1 12.3 16.6 16.5 16.2

Maize Rabi 3.8 5.6 4.4 5.1 5.3 6.1

Wheat Rabi 78.6 80.7 80.8 86.9 94.9 93.5

Total cereals

production230.8 234.5 218.1 244.5 259.3 257.1

Rice stock

(end-Mar)13.8 21.6 26.7 28.8 33.4 35.5

Wheat stock

(end-Mar)5.8 13.4 16.1 15.4 20.0 24.2





Source:

Comments

Prices

Government measures to curb inflation in India have had only partial effect and although food inflation fall below 10% in the past years, it remains

significant. After peeking up at 20% in Nov 2013, food prices lower to 8% in March. Recent weather conditions (unseasonal rain and hail storms) have

damaged crops, vegetables and fruits harvest and pushed up prices, especially of melon and cucumbers. After the unexpected rains in March, the rain in

the monsoon season will be very important for restraining food prices growth. If the period comes dry, the Reserve Bank might be forced to rise interest

rates again to push down inflation (but this would not support growth). Moreover since the government subsidizes food for big part of the population, the

inflation has direct negative effect on the budget balance. (5.2% of GDP deficit in 2012). Food inflation also hurts consumption, the balance of payments

and monetary policy flexibility.

Annual average and monthly inflation of main grain crops (yoy, %)

CEIC; EMIS calculation; The Wall Street Journal

-10

-5

0

5

10

15

20

25

30

35

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Grains Cereals Jowar Maize Barley



13/27- 26 -



Source:

Wheat

Indias share in world wheat export in value terms, 2012

India is among the top three global producers of wheat.

Yet it is not a major exporter since most of the output is

consumed domestically. Local needs are for about 76-77

mn tonnes per annum.

The major producing regions are Uttar Pradesh, Haryana,

Panjab, Rajastan and Madhya Pradesh.

In 2012-2013 wheat output reached 94.9 mn tonnesa

record high level. It is expected that the harvest in 2013-

2014 will be better, as preliminary estimations are for

annual increase of about 3.5 mn tonnes to 96.0 mn.

The average yieled will ease to 3.0 tonnes per hectare,

but due to favourable weather conditions and higher

support prices the sown area was expanded by 6% yoy to

a record 31.5 mn acres.

However the stronger harvest might not lead to equal

boost in exports as domestic procurement prices are high,

while international prices are expected to remain

depressed and export will not be so attractive for

producers.

On the other hand restricted export from Ukraine may

lead to wheat price hikes and increased export from India.

From Feb 2007 up to Sep 2011 the export of wheat from

India was prohibited. The ban was lifted in 2011 but only

for private traders. In 2012 the government allowed

shipments from state warehouses and state-supported

trader could export up to 2mn tonnes via tenders annualy.

Domestic wheat prices (yoy change, %)

COMTRADE, CEIC; EMIS calculations; Reuters

7.3

9.9

12.8

3.0

-1.8

15.5

7.66.8

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

26.6%

16.8%13.9% 12.6%

9.3%6.1% 4.8%

3.3% 2.8%

EU

US

A

Aus

tral

ia

Canad

a

Russ

ia

Argen

tin

a

Ukra

in

e

Kaza

hsta

n

India



14/27- 27 -



Source:

Rice

Indias share in world rice export in value terms, 2012

The major rice producing regions are West Bengal,Uttar Pradesh and Madhya Pradesh. About 70% ofthe global basmati rice is produced in India.

India is top rice exporter, holding more than a quarterof the world market. Although domestic prices havebeen below international, it wasnt until the exportban was lifted in Sep 2011, that India could cash onthe price advantage. The country exported recordhigh 7.2 bn in 2011 and a further increase wasestimated for 2012. In Apr-Dec 2013 exports ofbasmati rice have risen 46 % to USD 3.47bn,compared with USD 2.37bn a year ago. Exports ofnon-basmati rice rose 7% yoy to USD 2.13bn fromUSD 1.99 bn in Apr-Dec 2012. According to thepresident of All India Rice Exporters Association, riceexports might rise 7.8% in FY2013-2014, withbasmati rice sales being 14% up yoy (to 4 mntonnes), while non-basmati rise exports will be 4%

higher (to 7 mn tonnes). The increasing stocks of Thai basmati rise, along

with the falling global prices will push the competitionfor India exports.

Since rice acreage could not be expanded muchfurther, future increase in rice production could comeonly from yield enhancing technologies (hybrid ricecultivation) or development of the irrigation system.

Domestic rice prices (yoy change, %)

COMTRADE, CEIC; EMIS calculations; Bloomberg

11.3

14.8

12.3

5.9

3.1

12.713.5 13.4

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

27.1%

20.5%

11.7%9.2% 8.3% 7.3%

2.4%1.6%

India Thailand Vietnam USA Pakistan EU Brazil Australia



15/27- 28 -



Comments

Source:

Grain Crops: Pulses

The world production of tur (pigeon pea or gungo pea) is around 3.25 mn tonnes per annum. Due to favourable climate conditions, the main producers of

this crop are the countries in the Indian subcontinent, Africa and Central America. Among them, India is the leader, producing about 85% of the worlds

total amount. The crop is mainly grown in Maharashtra, Uttar Pradesh, Karnataka and Madhya Pradesh. Pigeon pea accounts for app. 20% of the pulses

sown in India. Despite the huge production, as domestic demand is high, India does not export tur, but import additional quantities from Myanmar and

Tanzania to cover consumption.

The same is also true for the other pulses. India is net importer of those products to fill the production-consumption gap. The import duty is zero.

Sown area (5 year average) and yield Pulses production (mn tonnes)

CEIC; CNR; Kharif crop-summer crop; Rabi crop- winter crop;

22.2

22.5

23.1

22.8 22.9

23.7

24.0

593 594

610614

625

644

662

2005 2006 2007 2008 2009 2010 2011


2007 2008 2009 2010 2011 2012

Kharif 6.4 4.7 4.2 7.1 6.1 5.9

Rabi 8.4 9.9 10.5 11.1 11.0 12.4

Tur 3.1 2.3 2.5 2.9 2.7 3.0

Gram 5.7 7.1 7.5 8.2 7.7 8.8

Total 14.8 14.6 14.7 18.2 17.1 18.3



16/27- 29 -



Comments

Source:

Oil-breading Crops

Soyabean accounts for almost half of the total oilseed crops production in the country. The crop is produced in Madhya Pradesh, Maharashtra

and Rajastan among others.

India is among the top five exporters of soyabean meal with its main partners being the other Asia countries.

Regarding trade policy, there is a 30% duty on oilseeds imports, zero duty on crude oils and 7.5% on refined oils.

The export of edible oils is prohibited, while oilmeals trade is fully liberalized.

Sown area (5 year average) and yield for Nine main Oilseeds Oilseeds production (mn tonnes)

CEIC; Kharif crop-summer crop; Rabi crop- winter crop;

24.6

25.4

26.5

27.2

26.9 26.8 26.8

918 918

995985

1,000

1,039

1,081

2005 2006 2007 2008 2009 2010 2011


2007 2008 2009 2010 2011 2012

Kharif 20.7 17.8 15.7 21.9 20.7 20.8

Rabi 9.0 9.9 9.2 10.6 9.1 10.2

Groundnut Kharif 9.2 7.2 5.4 8.3 7.0 4.7

Groundnut Rabi 7.4 5.6 3.9 6.6 5.1 3.2

Castorseed Kharif 1.8 1.6 1.6 1.6 1.8 1.5

Sesamun Kharif 1.1 1.2 1.0 1.4 2.3 2.0

Rapeseed andMustard Rabi

0.1 0.1 0.1 0.1 0.1 0.1

Sunflower Kharif 0.5 0.4 0.2 0.2 0.1 0.2

Sunflower Rabi 1.0 0.8 0.6 0.5 0.4 0.4

Soyabean Kharif 11.0 9.9 10.0 12.7 12.2 14.7

Total 29.8 27.7 24.9 32.5 29.8 30.9



17/27- 30 -



Source:

Cotton

Sown area and cotton yield

Cotton is among the leading crops in India and is

especially important for the textile sector, as it

accounts for more than half of the fibre consumption.

Its production, however, is largely dependent on

weather conditions with nearly 65% of the cultivation

area being rainfed.

The cotton season 2012-2013 started with delayedsowing in North India due to late harvesting, while

switching to other competing crops lead to lower

acreage of about 6%. Moreover the delayed

monsoon across the cotton belt and the southern

states also resulted in lower acreage. The hectares

were 3-12 % down yoy in all states except for

Andhra Pradesh, where the acreage was increased

by more than 20% to 2.3 mn hectres. Overall the

sown area decreased by app 10% in 2012.

The lower acreage was reflected in lower production

and import of cotton in some staples. At the same

time huge increase of import by China added to the

price increase.

Cotton output (mn bales)

CEIC; Cotton Advisory Board

9.4 9.410.3

11.112.2

11.6554

524

503

517

493 489

2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 2012-2013

Area, mn hectares Yields, kg per hectare

13.7

16.4

18.5

22.6

25.9

22.3

24.0

33.0

35.2

34.2

2003

2004

2005

2006

2007

20082009

2010

2011

2012



18/27- 31 -



Source:

Sugar

Sown area (5 year average) and yield

Sugarcane production was liberalized lately, as thegovernment abolished the requirement for mills to provide10% of their production at a set rate to the PublicDistribution System. This allows firms to invest more inupgrading and expanding their operations and is expectedto bring positive development of the sector.

The Indian government has had a very inconsistent policyregarding sugarcane trade. Since 2006 a ban on exportshas been imposed and lifted several times.

At the moment, the domestic sugar supply situation isfavourable due to lager carryover stocks despite a declinein production.

Export prospects however are not good, with higherproduction cost and prevailing lower international prices.

According to the Agriculture Ministry, Indiascompetitiveness in the international sugar market willcontinue to be tempered by lower production, highdomestic prices and increasing sugarcane prices in thecontext of rising global production and record stocks

leading to declining international prices. Moreover, asmost international trade in sugar is in raw form againstIndias production of white sugar, Indian sugar mills mightlhave to think of diversifying into raw sugar production tograb market share.

In Feb 2014 the government decides to provide an exportsubsidy of INR 3,333 per tonne for exports of 4 milliontonnes of raw sugar in two years.

Sugarcane output (mn tonnes)

CEIC; Ministry of Agriculture report Oct-Dec 2013

4.15

4.29

4.40

4.50

4.60

4.74 4.71

64,47364,969

66,15167,024

67,92968,554

69,118

2005 2006 2007 2008 2009 2010 2011


233.9

237.1

281.2

355.5

348.2

285.0

292.3

342.4

361.0

341.2

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012



19/27



Source:

Tobacco and Vegetables

Tobacco area, production and yield index (1993=100)

Other fruits and vegetables

Onion and potato

CEIC

8884

96105

141 141

8984

94

107

119 119

99

88

102

110119 119

2006 2007 2008 2009 2010 2011

Production Area Yield

2007 2008 2009 2010 2011 2012

Banana Area (thoun ha) 533 709 770 830 796 776

Production (thou tonnes) 17 647 26 217 26 470 29 780 28 455 26 509

Yield (kg/ha) 33 141 36 977 34 363 35 880 35 725 34 161

Blac

k

Pepper Area (thou ha) 197 239 196 184 200 125

Production (thou tonnes) 47 47 51 52 41 53

Yield (kg/ha) 239 199 260 183 203 422

Garl

icArea (thou ha) 205 181 165 201 243 248

Production (thou tonnes) 1 068 821 834 1 058 1 228 1 259

Yield (kg/ha) 5 210 4 535 5 059 5 264 5 065 5 088

Swee

t

Po

tato

Area (thou ha) 106 124 119 113 114 114

Production (thou tonnes) 943 1 120 1 095 1 047 1 071 1 071

Yield (kg/ha) 8 892 9 032 9 202 9 265 9 364 9 364

2007 2008 2009 2010 2011 2012

Po

tatoe

Area (mn ha) 1.6 1.8 1.8 1.9 1.9 2.0

Production (mn

onnes)28.5 34.4 36.6 42.3 41.5 45.3

Yield (kg/ha) 18 331 18 810 19 951 22 724 21 753 22 784

Onion

Area (mn ha) 0.7 0.8 0.8 1.1 1.1 1.1

Production (mnonnes) 9.1 13.5 12.2 15.1 17.5 16.8

Yield (kg/ha) 12 974 16 260 16 079 14 210 16 109 16 010



20/27



Source:

Price Dynamics

Oil breading seeds (yoy change, %)

Cotton, Sugar , Tobacco (yoy change, %)

Pulses (yoy change, %)

Fruit, Vegetables (yoy change, %)

CEIC; Emerging Markets Insight calculations

-10

0

10

20

30

40

50

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Raw Cotton Sugarcane Tobacco

-40

-20

0

20

40

60

80

100

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Vegetables Fruits Potatoes Onion

-20

-10

0

10

20

30

40

50

60

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Oil seeds Rape and Mustard Safflower Soyabean

-30

-20

-10

0

10

20

30

40

50

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Pulses Gram Masur



21/27



Source:

Government Undertakings

NAFED

The National Agricultural Cooperative Marketing Federation of India is the nodal procurement agency for oilseeds and

pulses. When the market prices for oilseeds and pulses drops below the government-set MSP, it purchases quantities from

the farmers.

CCI

Founded in 1970, the Cotton Corporation of India is a Government undertaking, controlled by the Ministry of Textile.

Its main function is to undertake price support operations, without any quantitative limit, whenever the market prices of

seed cotton reach the support prices announced by the Government. Those purchases are made at CCI own risk. The

Corporation also buys cotton to meet export commitments

FCIThe price support operations in the foodgrains segment are conducted by the Food Corporation of India. Headquartered in

Channai, the corporation has five zonal offices and 50 regional offices. It purchases about 20% of the wheat harvest and

around 15% of the rice output in India.

The following companies purchase farm-products on MSP and distribute them throughout India. The difference between the purchase and thesale price is covered by the Government through subsidy.

Company dataISIEmergingMarketsPDF in mdidemo from 115.111.95.19 on 2014 06 18 12:26:25 EDT. DownloadPDF.Downloaded by in-mdidemo from 115.111.95.19 at 2014-06-18 12:26:25 EDT. ISI Emerging Markets. Unauthorized Distribution Prohibited.


22/27



III. Livestock and Fishery

Indias fiscal year runs from Apr 1 to March 31. Thus, FY 2014 (also called fiscal 2014) means Apr 1, 2013 Mar 31, 2014. In Indian documents, FY (fiscal) 2014 is also labeled FY13-14.

The remaining nine months of calendar 2014, i.e. Apr-Dec, belong to fiscal year 2015.

In order to better align with calendar years and make international comparisons more meaningful, in the Major Players section of this report, Emerging Markets Insight has chosen to label data by

the year in which most of the result occurred. Unless otherwise stated, in the Major Players section of this report, 2012, for example, means the 12 months between Apr 1, 2012 - Mar 31, 2013, or

what in India is referred to as FY 2013. This applies to Indian companies only and may not apply to companies with global operations, which may be presented in this report.When sources have not provided details on their year labeling policy, year labels in graphs and tables featured in this repor t appear as provided by the source.



23/27



Comments

Source:

Livestock Output

Although it is not the leading agriculture segment, livestock breeding is gradually expanding and increase in importance for the India economy.

In regional terms, livestock breeding is concentrated in southern India.

Livestock Output (INR bn) Product-wise output distribution

CEIC

1,935

2

,154

2,4

72

2,9

21

3,4

61

4,0

12

7.5%

11.3%

14.8%

18.2% 18.5%

15.9%

2005

2006

2007

2008

2009

2010

Output, INR bn Change yoy,%

Milk 65.8%

Meat 19.4%

Dung 6.9%

Egg 3.8%

Other 4.1%



24/27



Source:

Livestock Production

Livestock production Milk production (thou tonnes)

CEIC; Business Standard; Reuters

Milk is the main product of the husbandry subsector and most

of it comes from caws.

In India, caws are breeded only for milk. Caw slaughter isprohibited in most of the states, except for Kerala, West Bengal

and the north-eastern region.

In all, India has half the buffaloes in the world, according to the

Indian Council of Agricultural Research, and the largest number

of cattle, with 327 mn heads, according to the US department

of Agriculture.

Milk availability per capita has increased by more than 25% in2002-2010 to 281 grams per day.

Exports of dairy products recorded 138 % growth in Apr-Dec

2013 at USD 435.93mn, against USD183.24mn in the

corresponding period last year.

46,822 49,810 52,200 54,90357,770 59,805

22,809 23,65024,238 25,348

26,695 27,421

56,630 57,89559,758

62,35065,352 67,675

4,4814,478

4,4674,594

4,7824,950

0

40,000

80,000

120,000

160,000

2007 2008 2009 2010 2011 2012

Goat

Buffaloe

NonDescriptCows

CrossedCows

53,565 55,562 60,26763,024 66,450

69,731

4,009 4,280 4,566 4,869 5,514 5,948

130,742 135,833140,663 147,195

154,599 159,851

2007 2008 2009 2010 2011 2012

Eggs (mn units) Meat (thou tonnes) Milk (thou tonnes)



25/27



Source:

Livestock Production (contd)

Eggs production (mn unit) Meat production (thou tonnes)

CEIC; The New Indian Express

Egg production in India increased by a compound rate of 5.4%

in 2007-2012. Among the two main segments, duck eggs

expanded by 4.9% in terms of volume, while fowlsby 4.8%.

Fowls eggs are produced predominantly in Andhra Pradesh

and Tamil Nadu, while duck eggsin West Bengal. The share

of the later segment is however less than 3% of all eggs

produced in India.

India is top exporter of beef. It is mainly produced in UttarPradesh and, as the country is very sensitive to beef eating dueto religious reasons, about 70% of the output is placed on theinternational market.

In 2012 beef export is estimated at 1.89mn tonnes, which is a50% increase over the past five years.

Poultry export amounted to 3.5 mn tonnes, placing India amongthe top three global exporters following the USA and Brazil.

The major meat export markets are the USA, Europe, as wellas the Gulf and South-east Asia countries.

Kerala is the biggest meat-consumer region in the country.

1,516 1,576 1,539 1,604 1,703 1,927

52,049 53,98658,728 61,420

64,747 65,643

53,565 55,56260,267

63,02466,450

69,731

0

20,000

40,000

60,000

80,000

2007 2008 2009 2010 2011 2012

Fowls

Ducks

Total232 250 223 211 286 327557 623 670 805

976 1,104294312 341

369399

441769 786

814 846905

941370 388

391402

4594531,755

1,8842,087

2,193

2,4832,682

0

1,000

2,000

3,000

4,000

5,000

6,000

2007 2008 2009 2010 2011 2012

Poultry

Pig

Goat

Sheep

Buffalo

Cattle



26/27



Source:

Fishery

Comments

Fisheries export

Fisheries output (INR bn)

Fish production (thou tonnes)

CEIC

Fish production in India increased by a compound rate of 5% in

2007-2011. Among the two segments, inland fishery expanded

by 5.9% in terms of volume, while marineby 3.7%.

Production is concentrated in Andhra Pradesh and West

Bengal, the two regions providing 35% of the total output.

About 10% of the production is exported.

Fish seed produced in India reached 36,566 mn fry in 2011,

rising by 4.5% yoy.

2,919 2,978 2,989 3,220 3,371

4,207 4,638 4,862 5,070

5,295

0

3,000

6,000

9,000

2007 2008 2009 2010 2011

Inland

Marine

213

.0

230

.5

239

.9

257

.8

282

.1

203

.9

227

.1 276

.6 331

.4 390

.7

2006 2007 2008 2009 2010

Marine f ish Inland f ish

73.0 76.2 86.1

129.0

166.0

4.0% 4.5%

13.0%

49.9%

28.7%

2007

2008

2009

2010

2011

Export, INR bn Change yoy,%



27/27

A di t ib ti f thi i f ti i t i tl hibit d

Source:

Prices

Milk and Egg (yoy change, %)

CEIC; Emerging Markets Insight calculations

Meat (yoy change, %)

Fish (yoy change, %)

0

5

10

15

20

25

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14Milk Egg

-20

0

20

40

60

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14

Inland fish Marine fish

-5

15

35

2007 2008 2009 2010 2011 2012 Dec'13 Jan'14Mufflon Beef and Buffalo Meat Poultry Chicken Pork

Documents

Emerging Markets Insight - India Transportation and Infrastructure Sector Report Segmentation