Obod presentation

1. AGRIBUSINESS IN INDIA:
SOME FACTS AND
EMERGING ISSUES
(2007-2017)
GROUP 5
Mathan
Salman
Pooja
Navaneeth
Pravin

2. AGRIBUSINESS
• The concept of agribusiness denotes the activities of agricultural sector
integrated in terms of production, processing, marketing and shipments
(exports/imports) under different organisational networks.
• Agri-business thus explores production, marketing and trading of products
related to agriculture.

3. • In the developed countries, agribusiness is defined as the total output arising from
farm production and product processing at both pre- and post farm gate levels.
• In developing countries like India, the agribusiness sector encompasses four
distinct sub-sectors, viz. agricultural inputs; agricultural production; agro-
processing; and marketing and trade.
• The Accelerated Agribusiness and Agro-Industries Development Initiative (3ADI) is
a multilateral effort to promote and support the establishment of highly productive
and profitable value chains for key agricultural commodities in developing
countries.

4. NEED FOR AGRIBUSINESS
• Increased demand for value-added services and geographic expansion of
markets require lengthening of the marketing channel, but this has been
hampered by lack of rural infrastructure.
• An estimated Rs 50,000 crore are lost annually in the marketing chain due to
poorly developed marketing infrastructure and inefficient system of marketing
activities
• Profit, growth and productivity are also not enough to make agribusiness work
for development, and often initiatives aimed at stimulating factors can harm
more than they help.

5. • At present, agribusiness is defined as all business enterprises or sells to farmers
/ traders / consumers. The transaction may involve either an input or a produce
or service and encompasses items such as:
1. Productive resources (feed, seed, fertilizer, equipment, energy, pesticides,
machinery, etc.)
2. Agricultural commodities – (raw and processed commodities of food and
fiber)
3. Facilitative services (credit, insurance, marketing, storage, processing,
transportation, packing, distribution, consultancy, soil testing etc.).

6. SIZE OF AGRIBUSINESS
• The value of agro-processed products during the year 2004-05 was Rs 4169
billion, in which Rs 2960 billion was from registered manufacturing units and Rs
1209 billion from unregistered manufacturing establishments. These included
processed dairy products, meat and fish, fruits and vegetables, edible oils, grain
milling products, beverages, tobacco and leather products.
• The total Indian agribusiness is worth at least Rs 11.43 trillion or Rs 11,43,000
crores.

7. • A shift from ‘agriculture’ to ‘agribusiness’ is being viewed as an essential pathway to
revitalize Indian agriculture.
• There are two ideas
i) Planning and macro managing the agricultural sector and the focus should
now shift from ‘only production’ to ‘production plus all other associated
activities’
ii) The shift from production to innovation, which is the specific requirement of
entrepreneurship.

8. SCENARIO OF AGRI-BUSINESS IN INDIA
• The Indian food processing industry is valued at approx. 45,872 cr. for the year
2007-08 and now at present valued is approx. 78,000 cr in 2016-17.
• India is ranked 5th in the world in terms of production, consumption and export of
processed food.
• India is the third-largest egg producer after China and USA and the fourth-largest
chicken producer after China, Brazil and USA.
• In an effort to boost the food sector, the government is working on Agri zones and
the concept of mega food parks.

9. PRESENT SCENARIO OF MARKET SIZE IN
AGRIBUSINESS
• India's GDP is expected to grow at 7.1 per cent in FY 2016-17, led by growth in
private consumption, while agriculture GDP is expected to grow above-trend at
4.1 per cent to Rs 1.11 trillion.
• India's food grain production is expected to be 271.98 MT in 2016-17.
• India's exports of basmati rice may rise to Rs 22,000-22,500 cr., with volume to
around 4.09 MT in 2017-18, backed by a rise in average realizations

10. • Wheat production in India is expected to touch an all-time high of 96.6 MT
during 2016-17.
• Spices exports from India grew by 9 per cent in volume and 5 per cent in value
year-on-year to 660,975 tonnes and US$ 1.87 billion respectively, during April-
December 2016

11. INITIATIVES BY GOVERNMENT(POLICIES)
 To reduce post harvest losses of fruits and vegetables , government plans to set up
500 cold chain projects in the country. Moreover , 42 sanctioned mega food parks
are likely to become operational by 2018.
 Total allocation for rural, agricultural and allied sectors for FY 2017-18 has been
increased by 24 per cent year-on-year to Rs.1,87,223 cr .
 A dedicated micro-irrigation fund will be set up by National Bank for Agriculture
and Rural Development (NABARD)’’PER DROP , MORE CROP’’ with a corpus of Rs.
5,000 cr.
 The government plans to invest Rs 221 crore to improve milk productivity and
NDDB sets up 42 dairy projects.

12. CONTD…
 Launch of Pradhan Mantri Fasal Bima Yojana with a budget of Rs. 17600 crore.
 After Green, White And Golden , it’s time for Blue – Rs 3000 crore budget.
 Launch of Paramparagat Krishi Vikas Yogana (organic farming, proper utilization of
soil and water)-Cluster Approach Mode of Farming
 The participation of women in Mahatma Gandhi National Rural Employment
Guarantee Act (MGNREGA) has increased to 55 per cent and allocation to the
scheme has been increased to a record Rs. 48,000 cr. for Financial year 2017-18.
 The Central Government plans to open at least one Krishi Vigyan Kendra in all
districts of the country, which will provide advanced agriculture technical assistance
to the farmers near their farms itself.

13. CONCLUSION
• Innovation has been the key to success of every entrepreneur, be it a farmer or trader.
• Our scientific analysis should lead to carving out a path out of poverty, food
insecurity and malnutrition for all those who have waited enough, in the shortest
possible time.
• Enhance the quality of life for farmers, farm workers, and society as a whole.

14. THANK YOU