2nd largest

agricultural land

Favourable climatic
conditions

Record production of
food grains
Largest producer of
major agricultural and
horticulture crops

Increasing farm
mechanisation

At 157.35 million hectares, India holds the second largest agricultural land in the world

With 20 agri-climatic regions, all 15 major climates in the world exist in India. The country
also possesses 46 of the 60 soil types in the world

Total food grains production in India reached an all-time high of 259 million tonnes
in FY13. Rice and wheat production in the country stood at 106.90 and 95.60 million
tonnes, respectively

India is the largest producer of pulses, milk, tea, cashew and jute; and the second largest
producer of wheat, rice, fruits and vegetables, sugarcane, cotton and oilseeds

India is one of the largest manufacturers of various farm equipments like tractors,
harvesters and tillers. India manufactures one-third of tractors in the world; the number of
tractors in the country is estimated to reach 16 million by 2030 from 6 million in 2014

Source: Ministry of Agriculture 3rd Advance Estimates,

Aranca Research

Robust demand
Growing
demand

196061

Food grain
production:
69.3 million
tonnes

Attractive opportunities

A large population is the key driver

of demand for agricultural
products
Rising urban and rural incomes
have also aided demand growth
External demand has also been
growing especially from key
markets like the Middle East

Increasing demand for agricultural

inputs such as hybrid seeds and
fertilisers
Promising opportunities in storage
facilities; potential storage capacity
expansion of 35 million tonnes
under the 12th Five Year Plan

2013-14
Food grain
production:
264.77
million
tonnes

Advantage
India
Competitive advantages

High proportion of agricultural land

(157 million hectares)
Leading producer of jute, pulses;
second-largest producer of wheat,
paddy, fruits and vegetables

Policy support

Government is increasing Minimum

Support Prices (MSPs) to ensure
higher crop production.
Schemes like Rashtriya Krishi Vikas
Yojana (RKVY) incentivises states
to increase private investment in
agriculture and allied sectors
Launched National Food Security
Mission (NFSM) to increase
production of rice, wheat and pulses
Source: Ministry of Agriculture 4rd Advance Estimates,
World Bank, FAOSTAT, Aranca Research

2000 onwards
1980-2000

1960-80

1950s

Pioneering work of
agricultural scientists
and efforts of farmers
led to Green Revolution
Stagnation in
High Yield Variety
agriculture
(HYV) of seeds,
increased use of
Low growth in crop
fertilizers and irrigation
and grain production
resulted in a significant
(0.4 and 0.1 per cent
spike in production
p.a.)

Attained food security

Food grain production
and reduced import of
of 59.2 MT in 1952
food grains
53, with a yield of
579.8 kg/ha

Expanding cereal
production
Economic reforms
introduced; greater
encouragement to
exports
Surplus of production of
agricultural commodities
over domestic demand
India emerges as a net
exporter of agricultural
products
Increase in population
and strong income growth

MNC players brought in better

technology
New insurance scheme for
protection against production
and price risk
Government launched NFSM
to increase production of
commodities
Schemes like National
Horticulture Mission (NHM)
and Bringing Green
Revolution in Eastern India
(BREI) helped achieve record
production.
Government initiated National
Mission on Oilseeds & Oil
Palm

Source: Ministry of External Affairs, RBI, Ministry of Agriculture, Aranca Research

Notes: NFSM - National Food Security Mission, MNC - Multi National Company, MT - Metric Tonnes, P. A. - Per Annum

National Crop Insurance Programme

(NCIP)

Modified National Insurance Scheme aims at

ensuring food security, crop diversification and
enhancing growth of the sector
Weather based crop Insurance aims to minimise
the financial loss of the insured farmers on
account of anticipated crop loss resulting from
adverse weather conditions
Coconut Palm Insurance Scheme aims at
minimising the risks faced by the coconut
cultivating farmers

National Mission for Sustainable

Agriculture (NMSA)

National Mission on Oilseeds &

Oil Palm (NMOP)

The mission envisages increase in production of

vegetable oils sourced from oil seed, oil palm
and Tree Borne Oilseeds (TBOs) from 7.06 -9.51
million tonnes
The strategy to implement the mission will
include increasing Seed Replacement ration with
focus Varietal Replacement, increasing irrigation
coverage under oilseeds, diversification of area
from low yielding cereal crops to oilseeds crops

The main focus of NMSA will be to facilitate

judicious utilization of resources through
community based sharing
With an objective of enhancing agricultural
productivity especially in rain-fed areas focusing
on integrated farming, water use efficiency, soil
health management and synergizing resource
conservation

Horticulture Mission for North East

And Himalayan States (HMNEH)

The main objective of the mission is to improve

the production & productivity of horticulture crops.
Special emphasis on Low Volume, High Value,
Less Perishable Horticulture Crops
Providing viable employment opportunities
especially for women by developing the
horticulture farming

Source: Deptt. of Agriculture and Cooperation, Ministry of Agriculture, FAOSTAT, Aranca Research

GDP of agriculture and allied sectors in India was recorded

at USD156.1 billion in FY14

GDP by value added size of agriculture and allied

activities (USD billion)

According to the advanced estimates of Central Statistical

Organisation, agriculture and allied sector recorded a
growth of 3.6 per cent in FY14

156.1

CAGR: 2.8%

From FY07 14, agriculture and its allied services grew at a

CAGR of 2.8 per cent
Agriculture is the primary source of livelihood for about 58
per cent of Indias population

151.8

150.7

FY12

FY13

147.7

138.0
136.5

136.6

FY08

FY09

129.0

FY07

FY10

FY11

FY14

Source: Ministry of Agriculture, Print Release, Aranca Research

Notes: GDP Gross Domestic Product,
CSO Central Statistical Organisation

At USD30.5 billion, agriculture accounted for 6.8 per cent of

total Gross Capital Formation in FY12
Gross Capital Formation in agriculture and allied sector
recorded a CAGR of 8.1 per cent in a decade and now
accounts for around 20 per cent

Gross Capital Formation in agriculture and allied

activities (USD billion)
40.0

35.0

CAGR: 9.7%

30.0

Under the FY14 Union Budget, planned outlay for various

schemes under the Department of Agriculture and
Cooperation (DAC) has been fixed at USD11.8 billion

25.0
20.0

Allocation to the Rashtriya Krishi Vikas Yojana (RKVY) in

the FY14 budget has been increased to USD2.1 billion, a
rise of about 9 per cent from the previous financial year

30.5

26.5

27.3

27.3

FY09

FY10

FY11

22.0
19.2

15.0
10.0
FY07

FY08

FY12

Source: Ministry of Agriculture, Aranca Research

Note: RKVY is a central government scheme providing funds to state
governments to spend on agriculture

Production of food grains (million tonnes)

in Kharif and Rabi seasons

There are two major agricultural seasons in India: Kharif

and Rabi
Kharif season lasts from April to September (summer); rice
(paddy) is the seasons main crop

300

Rabi season lasts from October to March (winter); wheat is

the seasons main crop

200

Total food grains production in India reached an all-time

high of 259 million tonnes in FY13

100

According to the 4th advance estimates (Ministry of

Agriculture), the total food grains production is estimated to
be 265 million tonnes in FY14

CAGR: 1.83%

250

116

121

118

104

FY08

FY09

FY10

150

50

128

124

128

121

131

132

129

FY11

FY12

FY13

FY14

124

110

114

Kharif

Rabi

Source: Finance Ministry, Ministry of Agriculture,

Aranca Research

Area sown in FY13* (lakh hectares)

Rabi

Kharif

38
71

Wheat

13
38

Paddy

73
Pulses
Oil seeds

83

Oilseeds
384

118

Pulses

294
Jowar
Maize
142

Cotton
Bajra

96

Rice

Maize
181

Source: Finance Ministry, Ministry of Agriculture, Aranca Research

Note: *Second Advanced Estimates for FY13

Production and yields of wheat and rice

During the last five years, production as well as yields of

both major crops - rice and wheat - increased significantly
120

4.0

Production of wheat and rice reached an all-time high in

2013-14
In 2013-14 production of wheat according to the third
advance estimates is 95.85 million tonnes, and that of rice is
106.29 million tonnes
The yield of rice increased to 3.6 tonnes/hectare in FY14
from 2.4 tonnes/hectare in 2013

106.29
105.2 3.6
3.5

105.3

100

99.2

96.7

96
89.1

80

86.9

3.0

2.2

2.5

2.4

2.3
2.2

95.85

93.51

80.8

80.7

78.6

94.9

2.2
2.1

60

2.0
FY08

FY09

FY10

FY11

FY12

FY13

FY14

Production of Wheat (million tonnes)

Production of Rice (million tonnes)
Yield of wheat (tonnes/ hectare) - RHS
Yield of rice (tonnes/ hectare)- RHS

Source: Ministry of Agriculture, Aranca Research

India ranks 2nd in global production of fruits and vegetables, and is the largest producer of mango and banana, and has the
highest productivity of grapes in the world
National Horticulture Mission, National Horticulture Board, Technology Mission for Integrated Development of Horticulture in
North-East are some of the initiatives taken by the Government of India to boost the horticulture sector in the country
The National Horticulture Board has launched a new capital investment subsidy scheme for construction and expansion of
cold storages and storages of horticulture products
Indias horticulture production rose at a CAGR of 6.1 per cent during FY05-13

Fruit and vegetable production of top four countries (2012)

Indian horticulture area and production (2013)

300.0

268.8

CAGR**: 6.1%

250.0

211.2 214.7 223.1

25.0

500

257.3
240.5

20.0

191.8

200.0

166.9

600

400
300

182.8
15.0

484.0

220.0

200

156.3

150.0

76.4

100
100.0

10.0
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13
Production (million tonnes)

Area (million hectares)

35.9 21.0

12.3 3.1

USA

Italy

0
China

India

Fruits (million tonnes)

Vegetables (million tonnes)

Source: National Horticulture Board, Assorted Articles, FAO Stat, Aranca Research
Note: ** - CAGR Mentioned is for Production

India is among the 10 leading exporters of agricultural

products in the world; the country accounted for 2.07 per
cent of global agricultural trade in 2012
Total agricultural exports from India grew at a CAGR of 22.3
per cent over FY07-13* to reach USD42.37 billion

Agricultural exports from India (USD billion)

50.0
40.0
40.0

CAGR: 22.3%
30.0

The contribution of agriculture to total export has increased

to 11.9 per cent in 2013 from 8.9 per cent in 2010

42.4

25.8

20.0

18.4

17.5

17.7

FY08

FY09

FY10

12.7
10.0
0.0
FY07

FY11

FY12

FY13*

Source: Ministry of Agriculture, World Trade Organisation,

Indian Budget 2014, Aranca Research
Notes: CAGR - Compound Annual Growth Rate; * - Forecast

India exported rice worth USD7.8 billion in 2013-14, accounting for nearly 12.9 per cent of total agricultural exports
Cotton and Guargum meal were the next largest export items in terms of value; they accounted for 11.5 per cent and 9.20
per cent, respectively, of total agricultural exports in 2012-13
Guargum meal emerged as major export commodity; the value of exports rose at a staggering CAGR of 182.2 per cent over
FY10-13
Agricultural exports are expected to rise up to USD45 billion in FY15

Key agricultural and allied sector exports

from India in 2012-13 (USD billion)

Exports of guargum meal (USD billion)

4,000

3,602.3

5.7
3,028.6
2.7

2.6

Sugar

Oil meals

Spices

Meat and
preparations

Guargum meal

Cotton

1.4

1.0

0.8

0.7

2,000

Cashew

3.0

3,000

Tea

3.6

Fruits & Vegetables

3.4

Rice

6.0
5.0
4.0
3.0
2.0
1.0
0.0

1,000
125.5 160.3

300.1 480.9

553.3

404.7

0
FY10

FY11

Quantity (000' tonnes)

FY12

FY13

Value (USD millions)

Source: Ministry of Agriculture, APEDA, Aranca Research

Punjab and Haryana were the key

states of green revolution and
continue to be large producers of
food grains

Uttar Pradesh largest

producer of wheat
(33.02 million tonnes)
Assam is Indias largest
producer of tea

Gujarat largest
producer of cotton
(25.68 million bales)

Maharashtra largest
producer of Jowar

Karnataka largest
producer of maize
(4.4* million tonnes)

West Bengal largest

producer of rice
(15.80 million tonnes)

Madhya Pradesh largest

producer of pulses
(26.99 million tonnes)

Source: Department of Agriculture & Cooperation,

Notes: All figures as of 2013-14,
* - 2012-13

Population and income

growth

Demand-side
drivers

Increasing exports

Favourable
demographics

Growth
drivers

Hybrid and genetically

credit

modified seeds

Mechanisation

Irrigational facilities

Green Revolution in

Growing institutional

Supply-side
drivers

Policy
support

Increasing MSPs

Introduction of new
schemes

Eastern India

Opening up of exports of
wheat and rice

Note: MSP - Minimum Support Price

Population of India (million)

India, the second-most populated country in the world, has

to meet food consumption needs of around 1,271 million
people
Indias population reached 1.27 billion in FY14 compared to
1.25 billion in FY13

1,210

1,237

1,252

1,271

FY11

FY12

FY13

FY14

1,029
846

Population is a key demand driver of agricultural growth in

the country

683

Indias consumption expenditure is likely to reach USD3.6

trillion by 2020, up from an estimated USD1.0 trillion in 2010
FY81

FY91

FY01

Source: Census of India 2011, World Population Statistics,

Aranca Research

Domestic demand for agricultural and allied products has

not only been rising due to rising population, but also as a
result of greater consumption by a wealthier population

Per capita income at factor cost (USD)

1,600

1,432

Over FY07-14, Indias per capita income increased at a

CAGR of 10.4 per cent to USD1,274

1,400

CAGR: 10.4%

1,200

Indian agriculture has also benefitted from rising external

demand and the sectors wider participation in the global
economy

1,270

1,274

961

1,000

Consumption expenditure in India is likely to reach USD3.6

trillion by 2020, up from an estimated USD1.0 trillion in 2010

1,111

746

800

849

650
600
400
200
0
FY07

FY08

FY09

FY10

FY11

FY12

FY13 FY14*

Source: Central Statistical Organisation, Aranca Research

Note: FY14* - Advance estimates for 2013-14

Indias irrigation potential has steadily increased over the

years. In FY13 it stood at 139.5 million hectares compared
to 90 million hectares in 1995 and 22.6 million hectares in
1951

Area under irrigation (million hectares)

160.0

139.5

140.0
120.0

In FY11, aided by central government funding, individual

states generated additional irrigation potential of 0.6 million
hectares under the Accelerated Irrigation Benefit
Programme (AIBP)

40.0

The two major lift irrigation projects in Kohlapur; Tembhu

and Takari Mhaisal-have received USD19 million and
USD15 million by the Union Government

76.6

80.0
60.0

108.2

86.4

100.0
63.2

49.8
38.7

38.2

55.1

63.3

48.0

31.1

20.0
0.0
FY71

FY81

FY91

Gross Irrigated Area

FY01

FY10

FY13P

Net Irrigated Area

Source: Ministry of Agriculture, Aranca Research

Note: P is Provisional estimate

Gross irrigated area under food grains

(000 hectares)

Gross irrigated area under food grains is estimated to have

grown to 58.6 million hectares in FY10(P)
Of the wide variety of crops in India, rice and wheat are the
most irrigated
With growing investments in irrigation, the dependence on
monsoons has declined considerably over the years

70,000
58,641

60,000

53,609

50,000

44,866
37,851

40,000
30,117
30,000
20,000
10,000
0
FY71

FY81

FY91

FY01

FY10P

Source: Food and Agricultural Organization US,

Ministry of Agriculture, Aranca Research
Note: P is Provisional

Number of tractors sold

Mechanisation helps in raising farm income by increasing

productivity and limiting post-harvest losses
700,000

Growing sales of tractors and tillers in India reflects the

increasing level of mechanisation in farming; over FY07-14,
tractor sales rose at a CAGR of 8.7 per cent

600,000

CAGR: 8.7%

545,109

535,210

500,000
400,000

India is the largest manufacturer of tractors in the world,

accounting for about one-third of global production

633,656

300,000

393,836
352,835
342,836
346,501

320,000

200,000

The availability of farm power increased from 0.36 kilowatts

per hectare in 1971 to 1.4 kilowatt per hectare in 2006,
while the share of animated labour (that includes animal
and human labour) to farm power dropped from 60 per cent
to less than 14 per cent during this period
Sub-Mission on Agricultural Mechanisation initiated where
in it has been decided to establish parallel line for testing of
tractors at FMTTI provide expansion, Budni, to enhance the
intake capacity for testing of tractors and reduce the time
involved for testing of tractors

100,000
0
FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14

Source: Department of Agriculture and Cooperation, State of Indian

Agriculture 2013-14, ICRA,
A report on Farm Mechanization in India, Aranca Research
Note: E Estimates

Number of tillers sold

Sale of tillers increased at a CAGR of 19.3 per cent to

25,000 units over FY07-13
About 20 per cent of worlds tractor production is carried out
in India. Domestic tractor market contracted by 2.4 per cent
YoY during the first five months of FY15, while export
volumes grow by 16.9 per cent during the same period

60,000

CAGR: 19.3%

55,000

38,794
35,294

In FY14, domestic sales of tractors recorded 350,000 units

annually while exports reached 60,000 units
The government has set up a number of Farm Machinery
Training and Testing Institutes to train farmers on the
operation and maintenance of agricultural equipment
DAC proposes to initiate National Mission on Agricultural
Mechanisation (NMAM) to spread the benefits of
mechanisation among all levels of farmers especially small
and marginal ones

26,135
25,000

24,791

FY07

FY08

FY09

FY10

FY11

FY12

FY13*

Source: Department of Agriculture and Cooperation,

A report on Indian Tractor Industry by ICRA, Aranca Research
Notes: * Up to Oct 2012,
DAC - Dept. of Agriculture and Cooperation

Production of seeds (000 tonnes)

The size of Indias seed industry was about USD1.6 billion

(estimate) in FY10
3,500

There has been strong growth in the use of hybrid seeds

due to their high yield and resistance

16
3,001

3,000

2,773

13

2,500

Usage of hybrid seeds has been more prevalent in cash

crops than food crops

2,000

In FY13, production of certified seeds increased to 3.0

million tonnes from 1.27 million tonnes in FY07

1,000

2,158
1,550

1,500

500

2,839

1,791

10

1,268
7
80

82

97

FY07

FY08

FY09

105

175

219

225

4
FY10

FY11

FY12

FY13*

Foundation seed production ('000 tonnes)

Certified seed production('000 tonnes)
Breeder seed production ('000 tonnes) (RHS)
Source: Ministry of Agriculture, Aranca Research
Note: * - until February 2013

Food grain yields (kg/hectare)

Usage of hybrid seeds has boosted the yield of food grains

to 2,086 kg/ hectare in FY13 from 1,023 kg/ hectare in FY81
2,500

The government has been playing a proactive role in

promoting greater use of hybrid seeds; it encourages private
seed companies by providing a subsidy of 25 per cent of the
capital cost subject to a maximum of USD50,000 per unit

1,930

2,000

2,059

2,086

FY12

FY13

1,626
1,380

1,500
1,023
1,000
500
0
FY81

FY91

FY01

FY11

Source: A report by Fertilizer Association of India,

Ministry of Agriculture, RBI, Aranca Research

Institutional credit to agriculture (USD billion)

Institutional credit to the agriculture sector increased at a

CAGR of 17.4 per cent during FY0713
90.0

Farmers are allowed to avail crop loans at an interest of 7

per cent

76.8

80.0

79.6

72.1

70.0

59.5

60.0

In FY12, the government increased the interest subvention

for timely repayment of crop loans to 3 per cent from 2 per
cent in FY11

50.0
40.0

47.7
34.7

37.7

30.0
20.0
10.0

16.3
8.9
4.3

10.1
5.3

9.6

13.2
5.6

7.3

9.2

20.5
18.3
11.3
12.8

0.0
FY07

FY08

Commercial Banks

FY09

FY10

Cooperative Banks

FY11

FY12

FY13*

Regional Rural Banks

Source: Ministry of Agriculture,

National Sample Survey Organisation (NSSO), Aranca Research
Note: * Figures for FY13 are provisional

Domestic banks (both private and public) are stipulated to

provide almost one-fifth (18 per cent) of their net bank credit
to agriculture

Share of institutional credit to agriculture

100.0%

74.5%

Banks are issuing Kisan Credit Card (KCC) to farmers to

provide timely and adequate credit support. By the end of
March 2013, 33.8 million KCCs were issued to eligible
farmers

80.0%

There is a wide scope for credit providers to the agricultural

sector, as only around 50 per cent of the total agriculture
financing was provided by formal banking institutions as of
FY13

20.0%

60.0%

52.6%
39.2%

40.0%
15.7%
8.0%

9.8%

0.0%
Co-operative Banks

Regional Rural
Banks

FY01

Commercial Banks

FY11

Source: Annual Report on Agriculture 2010-11,

NABARD, Aranca Research

MSP of rice (USD per quintal)

The MSP is announced well ahead of the sowing season so

that the farmers can take informed decisions on cropping.
50.0

The Indian government increases MSPs regularly to

incentivise farmers to enhance production of crops and
ensure there is adequate supply
The MSP for rice was raised to USD44.0 per quintal in
FY14 at YoY growth of 19 per cent from USD26.0 per
quintal in FY13

44.0

45.0
40.0

CAGR: 19%

35.0
30.0

22.5

25.0
20.0

15.0

26.0

20.8

18.8

19.8

FY09

FY10

15.5

10.0
5.0
FY08

FY11

FY12

FY13

FY14

Source: Ministry of Agriculture, Aranca Research

Note: MSP is Minimum Support Price

Government has increased the MSP of pulses significantly

in the past three years to encourage production and thereby
reduce the supply shortage

MSP of Arhar (USD per quintal)

90.0

80.2

80.0

MSP for Arhar came down to USD71.3 per quintal in FY14

from USD32.3 per quintal in FY08

62.5

60.0
47.9

50.0
40.0

71.3

66.7

70.0

41.7
32.3

30.0
20.0
10.0
0.0
FY08

FY09

FY10

FY11

FY12

FY13

FY14

Source: Ministry of Agriculture, Aranca Research

National Food Security

Mission (NFSM)

National Food Security Mission was launched in FY08 with an outlay of USD1.2 billion
during the 11th Five Year Plan. It aimed at enhancing the production of rice, wheat and
pulses by 10 million tonnes, 8 million tonnes and 2 million tonnes by FY12
National Food Security Act came into being in September 2013

Rashtriya Krishi Vikas

Yojana (RKVY)

Rashtriya Krishi Vikas Yojana (RKVY) was launched in FY08 with an outlay of USD5.3
billion during the 11th Five year plan
RKVY aims at incentivising states to increase outlays for agriculture and allied activities
there by creating an increased focus on agriculture

Foreign Direct
Investment (FDI)

Bringing Green
Revolution in Eastern
India (BGREI)

100 per cent Foreign Direct Investment (FDI) is allowed under automatic route in storage
and ware housing including cold storages
FDI policy for agriculture was amended to allow 100 per cent FDI under automatic route
for development of seeds

Scheme was launched in 2011, under RKVY, to strategically increase in productivity in

Eastern states
BGREI actively promoted various technological interventions and emphasised on
collaborative work among institutions, officials and farmers

Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research

Note: RKVY - Rashtriya Krishi Vikas Yojana

Government has launched an initiative to spend USD65.1 million to promote 60,000

pulses villages in rain fed areas for increasing crop productivity and strengthening market
linkages

Realising that scientific and technical breakthroughs are critical to increasing agricultural
productivity, the government, in its FY14 budget, allocated USD711.4 million to incentivise
farm research

Pulses villages

Incentivising agricultural
research

Regional Rural Bank

Credit Refinance Fund

Integrated Scheme of
Oilseeds, Pulses, Oil
palm and Maize
(ISOPOM)

The government plans to set up a Regional Rural Bank Credit Refinance Fund with a
capital of USD2.1 billion to enhance the capacity of RRBs to disburse short term crop
loans to small and marginal farmers
In budget for FY14, the government raised the target for agricultural credit by USD26.04
billion to USD145.8 billion

ISOPOM scheme was launched in 2004 to provide flexibility and promote crop
diversification; under ISOPOM, states can utilise the allotted funds to develop a crop of
their choice

Source: Ministry of Agriculture, Union Budget 2011-12, Aranca Research

Notes: RRB Regional Rural Bank,
ISOPOM - Integrated Scheme of Oilseeds, Pulses, Oil palm and Maize

Agricultural R&D in India is being managed under a three

tier scheme:
Indian Council of Agricultural

Expenditure on R&D in Agriculture by government

(USD millions)
180

CAGR: 11.7%

150

State Agricultural Universities (SAUs)

120

Private sector at both sector and commodity levels

Major achievements in R&D in agriculture

Over 2,300 high-yielding types and hybrid of crops have
been developed and approved for commercial cultivation
India is the first in the world to develop hybrid cultivars* of
cotton, grain pearl millet, castor and safflower, and second
to develop cultivars of rice and sorghum
High yield varieties of crop have been developed in India;
productivity of banana and potato has increased three-fold

158.5

138.8

111.1
106.3

107.5

FY08

FY09

90
60
30

0
FY10

FY11

FY12

Source: Indian Council of Agriculture, Ministry of Agriculture,

www.thefreedictionary.com, Aranca Research
Note: *Cultivars - A variety of a plant that has been created or
selected intentionally and maintained through cultivation

Agriculture GDP

Agricultural center for

excellence

Food grain productuion

to be 264 MMT

Agricultural exports
estimated to increase

Agriculture GDP growth for the current year is estimated at 4.6 per cent compared to 4.0
per cent in the last four years
A sustainable growth of 4 per cent is to be achieved each year

Announcement of plans to establish centers of excellence in agriculture in Assam and

Jharkhand, agriculture universities in Andhra Pradesh and Rajasthan, and horticulture
universities in Telangana and Haryana

Food grain production is estimated to be 264* million tonnes in 2013-14 compared to 259
million tonnes in 2012-13
MSP for every agriculture produce increased significantly

Agricultural exports likely to cross USD45 billion higher than USD41 billion in the year
2012-13

Source: Union Budget 2014-15 & 2013-14,

Ministry of Agriculture *3rd Advance estimates, Aranca Research

Farm management services

New agri business, which

provides inputs such as seeds,
fertilizers along with providing
advice and training farmers on
latest agricultural practices

Limited arable land against

growing population makes
agricultural inputs crucial

Huge opportunity exists for agri

input segments like seeds and
plant growth nutrients

It introduces efficiencies into the

whole gamut of agri practices

Provides assistance to sell

products at appropriate prices

Logistics

Agricultural inputs

In India, commercial seeds only

account for minor percentage (25
per cent) and huge demand is
expected for quality branded
seeds

The 12th Five Year Plan

estimated a potential storage
capacity expansion of 35 million
tonnes

Cold storage capacity needs to

grow rapidly from the current
level of 24 million tonnes

Private warehouse operators are

supported by multiple income
streams, subsidy and available of
credit

Source: Ministry of Agriculture, Aranca Research

Foreign Direct
Investment (FDI)

Foreign Direct Investment into India grew for the month of April 2014 to USD2,001 million
Cumulative FDI from April 2000 to April 2014 in agriculture services and agricultural
machinery is USD2,059.1 million
The highest FDI came in services, followed by automobiles, pharmaceuticals and
construction development in the 11 months of 2013-14

National Food Security

Act, 2013

The Act gives the Right to receive food grains at subsidised prices by persons belonging
to eligible households under Targeted Public Distribution System
Under the provision of the Bill, beneficiaries are able to purchase 5 kgs per eligible person
per month of cereals at the following prices:
Rice at Rs 3 per kg
Wheat at Rs 2 per kg
Coarse grains (millet) at Re. 1 per kg
The government is likely to invest more on the storage infrastructure, which will reduce
wastage and thereby lead to lower prices

Source: Ministry of Agriculture, DIPP, Aranca Research

The Government of Indias National Agriculture Policy envisages that Private sector participation will be promoted through
contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for
crop production especially of oilseeds, cotton and horticultural crops

Foreign companies practicing contract farming in India

Companies
provide R&D and
agricultural
implements to
farmers

Stable and steady

supply of quality
farm output for
companies

Contract Farming in
India

Regular and
timely payments
to farmers and
credit facilities

Company

State

Crop

Cargill India
Pvt Ltd

Madhya
Pradesh

Wheat, Maize and

Soya bean

Hindustan
Lever Ltd

Madhya
Pradesh

Wheat

ITC - IBD

Madhya
Pradesh

Soybean

Appachi

Tamil Nadu

Cotton

Punjab

Milk

Punjab, TN

Chillies, Groundnut,
Seaweed, Tomato
and Basmati Rice

Nestle India
Ltd

Lesser logistics
cost for both,
farmers and
companies

Reduces the price

risk fluctuations
and saves land
investments for
companies

Pepsi Foods
Pvt Ltd

Source: Company reports, Assorted articles, Aranca Research

Groundnut
Contract farming agreement
with farmers in Punjab
PMG technology sourced from
china

Company supported farmers in

R&D and other farm activities
Farmer started to grow two
crops in one year

Pepsi Co

Yields increased to 3-4

tonnes per hectare, much
above national average of 1
tonnes per hectare
Model extended
to other states

Barley
Created procurement centers to
procure Barley in Rajasthan

SAB Miller

Provide higher-quality certified

seeds and training to 5,600
farmers in Rajasthan

Increase in yields from 1.9

tons a hectare to 3.8 tonnes
a hectare within the space of
one year
Others followed
the model
Source: Company reports, Assorted articles, Aranca Research
Note: PMG - Plastic Mulch Groundnut

The Bringing Green Revolution to Eastern India (BREI) started in 2011, with special focus on the production of rice and wheat
The government used a cluster-based approach, private sector participation and strategic interventions relating to crop
production, water harvesting and recycling
The movement helped the region to increase productivity of rice, which was previously among the lowest in India

Rice production in Eastern states increased by about 39.0 per cent to 56.10 million tonnes in FY13 from 40.32 million tonnes
in FY10
BGREI has increased demand for farm machinery and equipment, and adoption of hybrid rice
Promotion of
high yield
varieties

Rice production in Eastern states of India (million tonnes)

3.0
1.5

Jharkhand

6.6
4.1

Chhattisgarh
Bihar

3.6

Uttar Pradesh (East)

Cluster
based
approach

7.3

Involvement
of private
sector

12.0

5.5

Total for seven states

56.1

40.3
0

Bringing
Green
Revolution
to Eastern
India

10

FY13

20

30

FY10

40

50

Ground and
rain water
utilisation

60

Source: Ministry of Agriculture, Aranca Research

Salient characteristics
Rallis is a leading player in the agricultural inputs business and one of the largest player in agri chemical business
Crop protection is the major segment for the company and it plans to expand its presence in seeds and PGN
As part of the above mentioned plans, Rallis acquired a research-led seeds company Metahelix and launched a PGN
product in the name of Ralligold
Rallis India has set up Rallis Farm Management services to undertake contract farming
Rallis Research centre has won the prestigious New Millennium Indian Technological Leadership Initiative award for a
molecule discovery

Major business segments

Crop protection

Agri services

Rallis
Contract farming

Seeds and PGN

Note: PGN - Plant Growth Nutrients

Net sales (USD million)

Profit before taxes (USD million)

350.0

318.0
260.3

250.0
183.1

265.2

35.0

222.0

140.5

31.7

31.8

30.5

31.1

30.0

200.0

25.0

174.3

39.4

38.4

40.0

300.0

150.0

45.0

22.3

20.0
15.0

100.0

10.0
50.0

5.0

0.0

0.0
FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY08

FY09

FY10

FY11

FY12

FY13

FY14

Source: Company website, Aranca Research

Autonomous Bodies
National Institute of Agricultural Extension Management
Rajendranagar, Hyderabad500 030, Andhra Pradesh
Phone: 040-24016702 to 706
Fax: 040-24015388

National Institute of Agricultural Marketing (NIAM)

Bambala, Kota Road
Jaipur302033, Rajasthan
Phone: 0141-2770027
Fax: 0141-2771938, 2770027

Boards
Central Insecticides Board and Registration Committee
Machinary Store Building,
N.H.IV Faridabad
Phone: 0129 -2413002

Coconut Development Board

Kera Bhavan, SRVHS Road, Kochi
Kerala682011
Phone: 0484-2376265, 2377267, 2376553
Fax: 0484-2377902

 National Dairy Development Board (NDDB)

PB No 40, Anand388 001
Phone: 02692-260148/260149/260160
Fax: 02692-260157

National Horticulture Board (NHB)

Ministry of Agriculture, Government of India
85, Institutional Area, Sector-18
Gurgaon122015, Haryana

National Oilseeds and Vegetable Oils Development Board

(NOVOD)
86, Institutional Area, Sector-18
Gurgaon122015, Haryana

Councils

Indian Council of Agricultural Research (ICAR)

Krishi Bhavan, New Delhi 110 114
Phone: 91-11-25846010

AIBP: Accelerated Irrigation Benefit Programme

Breeder seeds: Seeds move from germ-plasm (research) stage to breeder stage
CAGR: Compound Annual Growth Rate
Certified/quality seeds: Foundation seeds are further multiplied to get certified seeds, which are sold to farmers
FMTTI: Farm Machinery Training and Testing Institutes
Foundation seeds: Breeder seeds are multiplied as foundation seeds
FY: Indian Financial Year (April to March) FY12 implies April 2011 to March 2012
KCC: Kisan Credit Card
MSP: Minimum Support Prices
NFSM: National Food Security Mission
NMAM: National Mission on Agricultural Mechanisation
PGN: Plant Growth Nutrients

RKVY: Rashtriya Krushi Vikas Yojana is a central government scheme providing funds to state governments to spend on
agriculture
Wherever applicable, numbers have been rounded off to the nearest whole number

Exchange rates (Fiscal Year)

Exchange rates (Calendar Year)

Year

INR equivalent of one USD

Year

INR equivalent of one USD

2004-05

44.81

2005

43.98

2005-06

44.14

2006

45.18

2006-07

45.14

2007

41.34

2007-08

40.27

2008

43.62

2008-09

46.14

2009

48.42

2009-10

47.42

2010

45.72

2010-11

45.62

2011

46.85

2011-12

46.88

2012

53.46

2012-13

54.31

2013

58.44

2013-14

60.28

Q12014

61.58

Average for the year

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