Agri-Input Industries

Satish Ch PantID. 40943

Sector OverviewAgriculture 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

• Fertilizers• Seeds• Agrochemicals

• PPC• Insecticides• Fungicides• Antibiotics

• Herbicides• Machinery

Input Business Output Business

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.

ClassificationSource

◦ Organic◦ Inorganic

Physical property◦ Solid◦ Liquid◦ Gas

Ingredients◦ Complete◦ Incomplete

Chemical Property◦ Straight◦ Mixed◦ 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/CustomerChannelImportersManufacturersGovernment of India

India at a GlanceNet 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%◦ 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%

80.3%

513

All India Nutrient Consumption

2355

125

167194

161 168184

203

0

50

100

150

200

250

1970-71 1980-81 1990-91 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06

lakh MT

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

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

China Bangladesh Srilanka Pakistan USA India World

000 ha

10.17%

0.57% 0.07% 1.39%

12.37% 11.45%

Overview….Chemical Fertilizers

N P K

Tota

l

consumption per hectare of gross

cropped area (kg)

0

20

40

60

80

100

1951-521960-611970-711980-811990-9120001-02

Axis Title

Axis Title

Fertiliser Production

lakh MT

202

154

101 108

64

31

267 261

132

0

50

100

150

200

250

300

China India U S A India China India

N N N

P P P

T T T

Fertiliser consumption

230

93

33

356

112

42 48

202

109

3914

162

0

50

100

150

200

250

300

350

400

N P K Total

China USA India

lakh MT

Fertiliser consumption

NN

NN

N N N

P

P

P

P

P P P

K

K

K

K

K K K

0

50

100

150

200

250

300

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

China Bangladesh Srilanka P akistan USA India World

Kg/ha2004

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)

breader seedfoundation seed

certified quality seed

0200000400000600000800000

1000000

1980-811995-962001-02

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 PlayerLargely 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 attackWeedsFungusInsects

PesticidesFungicidesInsecticides 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 setsTractorsTiller

ELECTRICITY, OIL AND IRRIGATION

The End