Agri-Input Industries

Satish Ch Pant
ID. 40943
 Sector Overview
 Agriculture is one of the most prominent sectors in in Indian
economy.
 Agriculture and allied sectors like forestry, logging and fishing
accounted for
◦ 17% of the GDP in 2010 and
◦ 55% of employment to the country's population
◦ 8.56 % of India’s exports.
◦ 43 % of India's geographical area is used for agricultural activity.

Despite a steady decline of its share in the GDP, agriculture is

still the largest economic sector and plays a significant role in
the overall socio-economic development of India.
Position
Agribusiness
Input Business Output Business

• Fertilizers
• Seeds
• Agrochemicals
• PPC
• Insecticides
• Fungicides
• Antibiotics
• Herbicides
• Machinery
 Fertilisers

Synthetic of natural products applied to soil or to the

foliage, supply certain essential nutrient to the plant
for nutrition and growth are known as Fertilisers,
Chemical Fertilisers or Commercial Fertilisers.
 Classification
Source Ingredients
◦ Organic ◦ Complete
◦ Inorganic ◦ Incomplete
Physical property Chemical Property
◦ Solid ◦ Straight
◦ Liquid ◦ Mixed
◦ Gas ◦ Complex
What?

What is the need for fertilisers?

What is the need of the plant/crop?
What is supplied by the fertilisers?
 Industry Makeup
Consumer/Customer
Channel
Importers
Manufacturers
Government of India
 India at a Glance
Net area under agriculture
◦ 1400 Lakh ha 1980-81
◦ 1430 Lakh ha 1990-91
◦ 1411 Lakh ha 2000-01
◦ 1408 Lakh ha 2003-04 - stagnant

Area sown more than once

◦ 326 Lakh ha 1980-81
◦ 427 Lakh ha 1990-91
◦ 445 Lakh ha 2000-01
◦ 497 Lakh ha 2003-04 - increasing
 India at a Glance
 Area under irrigation
Net >Once Gross
◦ 387 110 498 Lakh ha 1980-81
◦ 480 152 632 Lakh ha 1990-91
◦ 548 210 751 Lakh ha 2000-01 – 53.2%
◦ 551 217 768 Lakh ha 2003-04 – 54.5%

 Farmer data No. Lakh %

Holdings
◦ Marginal (<1 ha) 71 61.6% 80.3%
◦ Small (1-2 ha) 216 18.7%
◦ Semi Med (2-4 ha) 142 12.3%
◦ Medium (4-10 ha) 70 6.1%
◦ Large (>10 ha) 14 1.2%
513
 All India Nutrient Consumption
lakh MT
250

200

150

194 203
100 184
167 161 168
125

50
55
23

0
1970-71 1980-81 1990-91 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
 Where Do We Stand

In terms of
◦ Area under agricultural
◦ Fertiliser production
◦ Fertiliser consumption
◦ Production of major crops
◦ Productivity of major crops
 Area Under Agriculture
1600000 000 ha

1400000

1200000

1000000

800000

600000

400000

200000 10.17% 0.57% 0.07% 1.39% 12.37% 11.45%

0
China Bangladesh Srilanka Pakistan USA India World
 Overview….
Chemical Fertilizers

100
90
80
1951-52
70
1960-61
Axis Title 60
1970-71
50 1980-81
40 1990-91
30 20001-02
20
10
0
Axis Title
 Fertiliser Production
300 lakh MT

250 267 261

200
202
150
154
P P P
132
100
101 108
T T T
50 64
N N N 31
0
China India USA India China India
 Fertiliser consumption
lakh MT
400
356
350

300 China USA India

250 230
202
200 162
150 112 109
93
100
42 39 48
50 33
14
0
N P K Total
 Fertiliser consumption
Kg/ha
2004
300

250 K
K
200 P
K P
K
150 P P

100 K K K
N N P P
N N P
50
N N N
0
C hina B a ngla de s h S rila nka P a kis ta n US A India Wo rld

K 32.7 20.2 66.6 1.4 28.8 10 18.5

P 68.9 31.9 40.4 32.8 25.2 25.7 25
N 173.5 136.5 164.8 129.9 68.5 69 62
275.10 188.60 271.80 164.10 122.50 104.70 105.50
Seed
 Seed Retained from the previous year’s crop
 Seed obtained from fellow farmers or grain traders
 Seed purchased from formal seed industry or some state agriculture
universities.
◦ Production & distribution of quality seed (tonne)

1000000
800000
600000
400000
200000 1980-81
0 1995-96
breader 2001-02
seed foundation
seed certified
quality
seed
Public Player- National seed Corporation (NSC)
State Farm Corporation of India (SFCI)
State Seeds Corporations SSCs
Major focuses mainly on major crops of the area.

Private Player
Largely focuses on hybrid seeds especially of vegetables, oilseeds, cereals and
cotton.

Ratio- 60:40 between the private and public sectors.

Currently, some 500 hybrids of field crops and vegetables are being marketed
Focus on R&D, biotechnology.
Eg. Introduction of Bt technology (genetically modified hybrid)

Major Players:
These include Monsanto, Bayer CropScience, Syngenta, Advanta,
Hicks-Muse-Tate, Emergent Genetics, Dow Agro, Bioseed
Genetics International Inc., Tokita Seed Co, and Nunhems Zaden
BV.
 Factors attracting seed comp.
 country’s varied agroclimatic conditions
 abundant skilled and unskilled labor,

Private seed production is largely centered around Bangalore for vegetable

crops and Hyderabad for field crops, particularly cottonseeds.
 Plant Protection Chemicals

Disease and pest attack

Weeds
Fungus
Insects

Pesticides
Fungicides
Insecticides etc
India produces 90,000 metric tones of
pesticides a year. 
India loses nearly 30% of its potential
crop to insects, weeds and rodent attacks. 
DDT was first used for malaria control, 
Out of the 143 pesticides registered in the
country, 66 technical grade pesticides are
manufactured in India.
 Farm Machineries
Pump sets
Tractors
Tiller

ELECTRICITY, OIL AND IRRIGATION

The End