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WELCOME. Scope and Importance of Agripreneurship Development. Dr. N.R. PADMANABAN Professor & Head. Department of Social Sciences Anbil Dharmalingam Agricultural College and Research Institute, Tamil Nadu Agricultural University Trichy - 9.
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Scope and Importance of Agripreneurship Development Dr. N.R. PADMANABAN Professor & Head Department of Social Sciences Anbil Dharmalingam Agricultural College andResearch Institute, Tamil Nadu Agricultural University Trichy - 9
John H. Davis – Harvard University – first person –Agri business – 1955 • In 1980’s, three connotations • Synonymous with agriculture • Synonymous with agricultural economics • Modified agriculture excluding farming or off farm Agri. • AB means all business enterprises that buy from or sells to farmers / traders / consumers • Three components of AB • Productive resources – seed, fertilizer, equipment, machine. • Agricultural commodities – raw and processed commodities. • Facilitative services – credit, insu., mark., stor., proc., trans., etc.,
EMERGING OPPORTUNITIES IN AGRI BUSINESS • Varied agro climate offers enormous scope for production of temperate, sub tropical and tropical agro produces • Enormous demand for Agri. inputs like seed, fertilizer, bio fertilizer, pesticides, feed and fodder, so on. • Seed – Hybrid, GM, improved seeds • Bio technology in Agri. – seed, fertilizer, bio control agency, microbes for bakery products • Export of Agricultural produces – cereals, pulses, oilseeds and oils, spices and condiments, fruits and vegetables, flowers, medicinal plants and essential oils, agricultural advisory services, agricultural tools and implements, meat, milk and milk products, fish and fish products, ornamental fish, forest by products etc.
EMERGING OPPORTUNITIES IN AGRI BUSINESS Horti. – fruits, vegetables, flowers (cut flowers), ornamentals, Organic farming - vast scope Processing – Increased popul., urbani., indust., working women, civilization and less timing for cooking Fishery > 8000 km (costal), inland, rivers, ponds, tanks, ornamental fish Livestock - Meat- mutton, chicken, pork, beef, milk and milk products, egg - increased dd Forestry - Timber, fuel, lac, resin, gum, medicinal plants and other forest by products ( paper and pulp) Sericulture - Silk industry Mushroom - Button, oyster, paddy straw – delicious food Micro irrigation - Labour saving, water saving, increased productivity, efficient use of resources, sprinkler, drip Marketing, transport, warehousing, cold storage, credit, insurance, consultancy etc. Human resources in agriculture – trainee, agrl. Extn., consultancy
INEFFICIENCIES OF INDIAN AGRICULTURE Indian wastes more fruits & vegetables than are consumed in UK Cumulative waste is about $ 6.7 billion which is equivalent to 40% of the total horticulture produce Poor infrastructure and logistics support Rough and unorganized handling
Capital Formation in Agriculture • Investment in agriculture as a percentage of GDP at constant prices – 1990-91: 1.92 • 90-91 - Rs.14836 crores (10441 Pvt., + 4395 Public) • 05-06 - Rs. 54539 crores (41320 Pvt., + 13219 Public) • 2010-11 - Rs.1,42,254 crore • The Gross capital formation (GCF) in the agriculture and allied sectors in the country rose by 87 per cent to Rs 1,42,254 crore in the 2010-11 as compared to 2004-05.
Agricultural Marketing • 7566 regulated markets. • 21780 rural primary agricultural markets • Public- Private -Partnership (PPP)- emerging focus • Marketing reforms - MOA - New model law – enables establishment of Private markets, direct purchase centres, consumers markets, farmers markets, PPP, etc. • Provision for State Agricultural Produce standards bureau – for grading and standardization quality certification. • MNCs, Big corporate are entering agrl. marketing.
FOOD PROCESSING INDUSTRY IN INDIA India ranks first in the world in cereal and milk production and second in fruits & vegetables and in five producers of groundnut, rice, wheat, tea, coffee, sugar, spices & oil seeds. Even with an industry size of US $ 70 billion, process less than 2%. The industry has about 1.6 mn direct employees and accounts for about 13% of the country’s exports and 6%of the industry investment.
SUPPLY CHAIN MANAGEMENT Data integration, Financial flow management, Supply-demand matching, Collaborative forecasting, Information sharing, Goods movement synchronization through efficient transport scheduling
PRODUCTION – AGRL. PRODUCE (MILLION TONNES) Source: S.S. Acharya and N.L. Agarwal, Agrl. Marketing in India, ( New Delhi : Oxford and IBH, 2004) & Economic Survey various issues
INDIA’S EXPORTS OF AGRO PRODUCTS Qty in MT Value in Rs Lakhs Cereals
INDIA’S EXPORTS OF AGRO PRODUCTS Qty in MT Value in Rs Lakhs Floriculture products
INDIA’S EXPORTS OF AGRO PRODUCTS Qty in MT Value in Rs Lakhs FRESH FRUITS & VEGETABLES
Contd.. INDIA’S EXPORTS OF AGRO PRODUCTS Qty in MT Value in Rs Lakhs PROCESSED FRESH FRUITS & VEGETABLES
Contd.. INDIA’S EXPORTS OF AGRO PRODUCTS Animal Products Qty in MT Value in Rs Lakhs
Existing Markets for Export of Major agricultural commodities from India
Types of Agribusinesses Most of the small businesses can be classified as following types: Production Retailing Distribution Personal services Professional services Financial Franchising
Entrepreneurial opportunities in agriculture Farming (on farm) Crop Dairy/Poultry/Goat Fish Rabbit vegetables Flowers Ornamental plants Palmyra Fodder Sericulture Agro-forestry Beekeeping Mushroom
Entrepreneurial opportunities in agriculture Inputs marketing Fertilizer Agricultural Chemicals Seeds Machineries Animal feed Poultry hatchery Landscaping Vet medicines Agricultural credit Custom service Bio-control units Bio-tech units
Entrepreneurial opportunities in agriculture Product marketing Wholesale Retail Commission Agent Transport Export Finance Storage Consultancy
Entrepreneurial opportunities in agriculture Processing Milk Fruits Vegetables Paddy Sugarcane Cashew Coir Poultry Cattle Tannery Brewery
Entrepreneurial opportunities in agriculture • Facilitative • Research and Development • Marketing Information • Quality control • Insurance • Energy
SEED INDUSTRY • 1950s – Few hundred quintals of seed • 21 state seed corporation • 101 notified STL / 7 in Tamil Nadu • NSC estd., in 1963 • Around 100 major private sector seed companies • 75-80 percent of the hybrid maize, sorghum, millets, sunflower, cotton and vegetables – marketed by private firms. • Hybrid rice 95%, Hybrid maize 98% and 100% sunflower – by private • AP – seed capital of India (59% of cotton, 86% maize, 93% sorghum etc.,)
The major private players are • MAHYCO, • Indo American hybrid Seeds, • Proagro Seeds, • Mahindra Hybrid Seeds, • KrishiDhan, • Nath Seeds, • Nizuveedu Seeds, • Cargill Seeds, • Kanchan Seeds, • ankur Seeds, Advanta (India), • Syngenta, • Spic PHI-Biogene, • Ajeet Seeds, • Paras Extra Growth, • Ganga Agri. Seeds, • shriramBioseeds, • Raasi Seeds, • Sun Seeds and J.K. Agri-gemetics, etc.
Year wise requirement and Availability of quality SEED Lakh qtl
TRANSGENIC SEEDS • GM seeds as shown rapid growth in USA in recent times • BT (Bascillus Thuringiensis – soil Bacterium) cotton introduced in India October, 2002. – resistance to American boll worm. • Recorded 35% higher yield • Monsanto MAHYCO’s Bt Cotton • Raasi Bt cotton Source: Vikas singhal, Indian Agriculture
BIO TECHNOLOGY • Altering or introduction of a character or evolving a new organism using invitro techniques Bio Technology Plant Tissue culture Animal Cell Culture Transgenic crops/ Animals / Microbes commercial drugs/ medicines
PLANT TISSUE CULTURE Commercial Micro propagation Secondary metabolite production Alkaloids (medicines)-using cell culture Mass multiplication of plantlets Under invitro with small space & initial plant materials With small fermenting industry Initial cost 50.00 lakh for small lab Variable medicines Production 1 crore seedlings
BIO TECHNOLOGY – COMMERCIAL FIRMS • TERI – New Delhi • Harrison – Malayalam – Kerala • SPIC – Bio Tech – Chennai • Grow more – Dharmapuri • Indo American, Rallis India – Bangalore Tissue Culture Plants – Banana – (Grant , Robusta) Pomegranate Cardamom Archids / cut flowers Tree plants / Tea
FLOW OF INSTITUTIONAL CREDIT TO AGRICULTURE(CRORES) Source : Govt. of India, Economic Survey various years
PRODUCTION AND CONSUMPTION OF CHEMICAL FERTILIZERS (lakh tonnes) Source : Fertilizer Statistics
FERTILIZER CONSUMPTION PER HECTARE OF GROSS CROPPED AREA Source : Fertilizer Statistics
BIO FERTILIZERS: Rhizobium - Earlier Now – Azotobactor , Azolla , Azoapirillum, Cyanobacteria (BGA) PSM (Phosphate Solubilizing Micro organism) Potential demand for bio fertilizer: 3.4 lakh tonnes (Biotech consortium, Delhi) Azolla application N by 25-30 %
Year Capacity (‘000t) Production (‘000t) Capacity Utilization (%) 1992-93 1993-94 1994-95 1995-96 1996-97 1997-98 1998-1999 1999-2000 2000-2001 2011-12 5.40 6.12 8.11 10.68 12.65 16.36 16.45 - - - 2.00 3.08 5.18 6.69 7.41 7.10 8.01 10.04 13.03 40.32 37.1 50.3 63.8 62.6 58.6 43.4 48.7 - - BIOFERTILIZERS PRODUCTION STATUS IN INDIA
Crop Area (‘000 ha) Recommended dose (Kg/ha) Quantity required in tonnes Azospirillum Phosphobacteri Rhizo bium Rice 2261 4.0 9044 975 Millets 790 2.5 1975 9044 Pulses 591 1.0 - 591 296 Cotton 228 2.5 570 570 - Sugarcane 282 9.0 2538 2538 - Sunflower 18 2.5 45 45 - Groundnut 868 1.0 - 868 868 Turmeric 6 5.0 30 30 - Tobacco 8 2.5 20 20 - Coffee 32 10.0 320 320 - Tea 65 10.0 650 650 - Total 15192 16356 1164 Biofertilizer demand in Tamil Nadu for principal crops
PRECISION FARMING At Dharmapuri by TNAU – Horti. • Employs fertigation, bio control, bio fertilizer for quality and pesticide residue free Ag. Produces • Flower and vegetable crops • Bio fertilizers instead of chemical fertilizers • Bio pesticides instead of chemical pesticides • Solves environmental and pollution problems • Drip irrigation for vegetable crops
GODREJ AGROVET LTD. • The plant with a capacity of 8000 tonnes per annum is producing chilled chickens for the market of Pune, Nasik and Mumbai. • The chicken market in Mumbai also is valued at Rs 400 crores. • The company had a 4000 tonnes per annum capacity chicken processing plant at Bangalore- catering to the markets in Chennai, Bangalore, Kochi, Mangalore and Goa • The raw chicken market in the country is growing at about 10 per cent per annum while the growth rate of processed chicken market is about 2 per cent.
SUGUNA POULTRY FARMS LTD. • It produces two lakh broilers per day. • Sells 80 million birds annually out of 1200 million • Rearing arrangements in Karnataka, AP, Maharastra and Kerala besides in TN produces 2.5 lakhtonnes poultry feed annually. • In 200, it bring down its chicken rearing cost by choosing its own grand parent breeding facility.
MEDICINAL PLANTS • In India about 9500 species of medicinal plants were well documented and a number of others not documented • At present there are some 9000 units in the country producing ayurvedic medicines. • About 50 units operate in the large scale, 200 in the medium scale and the rest in the small and cottage scale. • In India exports medicinal plants, their extracts and ayurvedic medicines to the US, Germany, Russia, UK, Taiwan, the UAE, Hong Kong and Malaysia