Gap In Indian Agriculture Service Industry.

Comparison Study Harsh Pahuja 23/2010

Agriculture Sector Overview

India s population is 1.21 billion in 2011. 67% are rural. Majority are in agriculture. Importance of agriculture in Indian economy. Although it contributes only 15% of GDP, the share of workers is about 55%. Marginal and small farmers dominate Major crops are rice, wheat, maize, coarse cereals, groundnut, cotton, sugarcane, fruits and vegetables 60% of cultivated area is rainfed as only 40% of area is under irrigation. Rural poverty is 41%in 2004-05. Agriculture is a State Subject. In other words, the policies of provinces are also important

Agriculture Sector in India

Infrastructure for marketing of perishables Primary grading/ collection centers - non existent Warehousing and cold storage - inadequate Cold chain - non existent Quality certification system - non existent Transportation for perishables - non existent Rural markets - complete lack of infrastructure Wholesale markets - in government control, lack modern facilities Private / direct markets - not permitted Post harvest losses: 25 to 30 % in perishables

Agriculture Sector in India (contd.)

Cost Build Up For One Kg. Basket Of Fruit
1.7 4.1 3.3 FARMER TRADER WHOLESALER RETAILER CONSUMER PRICE 350 220 2.5 11.6

Retail Markups
100 FARM GATE PRICES 160

MILK

FISH

FRUITS &VEGETABLES

Concept
Modern terminal markets:

A professionally managed competitive structure To provide market services

to farmers at their door step

Comprehensive solution to meet needs of stakeholders

Auction
Processing industry

Exports Retail chain and Consumers

Requiring high investment and efficient management skills

Can be infused by private enterprise

Gaps in Present Scenario

Expertise and support in Rural Services Production advices, Farm supplies Financial Services

Service Industry
International Trading Insurance Financial Planning Farm Supplies Product Development Soil, Plant tissue, Water Testing Services

Service Providers in Australia

Elders Landmark DPI (Government Services)

Potential in India
Will Highly be influenced by FDI in India Structure of Terminal market Government Subsidies New tie-ups in Agriculture Industry New innovations in Agriculture