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Ever wondered how much an average Indian meal travels to get from farm to plate?
Believe you us; it is definitely not as simple as it sounds!
Our Cover Story Agriculture Services: A Journey from Farm to Plate enlightens
readers on the wide network of agricultural services, which work at multiple
levels simultaneously and throws light on its revenue and employment generating
capabilities.
Finance is crucial for every sector, and agriculture is no exception either. The article
on Agri-Finance Institutions: Major Players in Agribusiness Development talks
about the various agri-finance institutions and the crucial role they play in revitalising
the agriculture sector.
Act smart is the buzzword! The marketing of agriculture products is undergoing
rapid transformation and Organic Certification: Smarter Way to Market
Agriculture Products succinctly elaborates on this emerging trend.
India is finally waking up to the potential of Research and Development (R&D) in
agriculture. The article Agricultural Research in India spells out the evolution and
development of research, and lists out the benefits it entails.
Learning from the better practices of others has always been our forte. In the
International section, the article on India-South America Trade Ties: An Insight
on Marketing Agricultural Produce and Preventing Crop Loss makes for an
interesting and insightful read.
The case study Soil Based Integrated Management of Flood and Flood Plain
Soils is an in-depth and well-researched piece of work, which talks about the
judicious management of flood.
International cooperation is the way to go forward. And BRICS Agriculture Trade
Jumps Manifold; Trends Reveal Healthy Cooperation shows the jump in the
volume of trade within BRICS.
Theres plenty in store in this edition of Business of Agriculture (BoA). Keep
yourself updated with the News & Happenings from the agriculture industry,
spread across the pages.
Enjoy Reading!
Linda Brady Hawke
Publisher
Contents
September-October 2014
September-October 2014
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Managing Editor
William Hawke
INNOVATION
Editor-at-Large
Alankar Srivastava
COVER STORY
14 Agriculture Services: A Journey from Farm to
Plate
william.hawke@gmail.com
Desk Editor
Aamir H Kaki
Business Manager
Maninder Kumar
TECHNOLOGY
maninder@lbassociates.com
Tel: +91 120 4727117
events@lbassociates.com
Circulation
Rahul
rahul@lbassociates.com
Tel:+91-8130311653
Layout & Design
Atul Kumar
Pradeep Bisht
Social Entrepreneur
42 Farmer to Consumer Initiative
CASE STUDY
48 Mangrove Restoration through PPP
52 Soil Based Integrated Management of Flood
and Flood Plain Soils
FINANCE
58 Agri Finance Consultancy to Farmers: Crucial
to Bridge the Knowledge Gap
60 Agriculture Consultancy Services:
Strengthening and Transforming Agribusiness
Agriculture
INTERNATIONAL
66 BRICS Agriculture Trade Jumps Manifold;
Trends Reveal Healthy Cooperation
70 India-South America Trade Ties: An Insight
on Marketing Agricultural Produce and
Preventing Crop Loss
74 International News
Business of Agriculture
September-October 2014
HAPPENINGS
Scientists are trying to develop heat-stress resilient, high-yielding and nutritionally enriched maize varieties
to face the challenges of global warming.
The Global Maize Programme, an initiative of the International Maize and Wheat Improvement Centre, is
intensively pursuing the development of heat-stress resilient, high-yielding and nutritionally enriched maize
varieties in order to face the challenges of global warming and meet the global demand for maize, the
agencys director Prasanna BM has said.
With the financial assistance of United States Agency for International Development (USAID), the
CIMMYT has undertaken Heat-Stress Resilient Maize for South Asia, a five-year project, for developing
heat tolerant and high-yielding maize varieties, specifically suitable for South Asian climatic conditions. The
project has commenced in 2012 and will end in 2017, Mr. Prasanna said at a press conference at the
University of Agricultural Sciences (UAS).
What about
Irrigation and
Drinking Water
Scheme, ask
Farmers
Weak Monsoon Hits
Kharif Sowing
The cultivation of kharif crops is lower by 44.91 percent
so far in Maharashtra, Madhya Pradesh and Rajasthan
compared to the corresponding period last year owing
to delayed and deficient southwest monsoon. The latest
official figures show that the total kharif sowing is lower by
281.84 lakh hectares at 345.60 lakh hectares planted so far.
HAPPENINGS
September-October 2014
HAPPENINGS
The Reserve Bank of India (RBI) has finally agreed for rescheduling of crop loans for which the Andhra Pradesh
government lobbied hard, but with several riders that include restricting the coverage to some farm loans in
four districts and not including those taken against gold.
In a letter sent to the Chief Secretary, IYR Krishna Rao, the RBI further restricted the relief only to shortterm production loans extended by commercial, cooperative and regional rural banks in the four districts of
Srikakulam, Vizianagaram, Nellore and Krishna which it said, was based on normative criteria. Loans taken
for allied agriculture activities would not be eligible.
The other loans not eligible for crop loan scheme for reschedulement include advances against pledge or
hypothecation of agriculture produce other than standing crop, tied loans and closed crop loan accounts.
The reschedulement will be limited to a period of three years, comprising one -year moratorium and two
years reschedulement.
HAPPENINGS
Karnataka Farmers to
get Farm Equipment on
Rent
Horticorp to step up
Procurement ahead of Onam
The Kerala State Horticultural Products Development
Corporation (Horticorp) is preparing to step up
procurement from the main vegetable-growing
hubs at Kanthalloor and Vattavada in Idukki district
to meet the spike in demand during Onam season.
Horticorp managing director VV Pushpangadan said,
The business at the festival fairs was expected to go
up by five or six times in the run-up to Onam.
In addition to the mega fairs named Ona Niravu, we
have opened 350 stalls and 17 mobile outlets where
customers can purchase fruits and vegetables at a
discount of 20 to 30 percent. Another 25 mobile stalls
will also be opened, he said.
The corporation is procuring vegetables from
domestic farmers through its district procurement
centres, World Markets under the Agriculture
Department, and self-help groups under the Vegetable
and Fruit Promotion Council Keralam, he added.
Business of Agriculture
September-October 2014
Events
Logistics
Conclave 2014
EVENTS
Business of Agriculture
September-October 2014
11
Events
COVER STORY
Agriculture
Services
A Journey
from Farm
to Plate
By Alankar Srivastava
COVER STORY
Business of Agriculture
September-October 2014
15
COVER STORY
COVER STORY
September-October 2014
17
COVER STORY
COVER STORY
COVER STORY
Business of Agriculture
September-October 2014
21
Innovation
Agri-finance Institutions
Major Players in
Agribusiness Development
By Ganesh Prajapat
The scope of
agribusiness
is very broad
as it covers all
major rural
activities
and further
processing of
agricultural
products
Innovation
23
September-October 2014
Innovation
Noninstitutional
finance
contributes
around 25% of
total finance to
the agriculture
sector
There must be
clear planning
that final
produce will
be purchased
by the target
buyers
Innovation
25
September-October 2014
In Summing Up
Innovation
Innovation
Business of Agriculture
September-October 2014
27
Innovation
Commodity
offered for
sale by other
farmers. In
fact, commodity
markets
are highly
competitive
because there
are many
buyers and
sellers of the
same basic
commodity
Innovation
http://grassrootsresilience.wordpress.com/2012/02/15/adoptinnovative-agricultural-practices/
Business of Agriculture
September-October 2014
29
technology
technology
An organic
certification
label has
positive
meaning to
the consumer
with respect to
food safety and
conservation
of vital natural
resources like
water, soil and
bio-diversity
31
September-October 2014
technology
The major
organic
products
exported from
India are tea,
basmati rice,
soybeans,
sugar, mangoes
(in processed
form) and
spices
Fruits/Vegetables 30 percent;
Dairy Product 15 percent;
Grains/Pulses 5 percent;
Spices 10 percent;
Processed Products 33 percent;
Non Food Items 7 percent (which includes
textile and cosmetic items).
Business of Agriculture
R&D
September-October 2014
35
R&D
Trichoderma
Viride is
one of the
strongest soilborne fungal
species, it is
antagonistic
to several
economicallyimportant
pathogens such
as rhizoctonia
and fusarium
R&D
Business of Agriculture
September-October 2014
37
Agricultural Research
in India: Evolution and
Development
R&D
By Aamir H Kaki
R&D
September-October 2014
39
R&D
Agricultural
research in
India has an
interesting
history
regarding its
growth and
development. It
started during
the colonial
era and today
the agricultural
research system
is probably the
largest research
system in the
world
49 ICAR institutes;
17 National Research Centers;
Six Bureaux;
25 project directorates;
79 All India Coordinated Research Projects and
AINPs;
607 Krishi Vigyan Kendras;
52 State Agricultural Universities;
One Central Agricultural University;
Four Central Universities having Faculty of
Agriculture.
To Conclude
Agricultural research in India has an interesting
history regarding its growth and development.
It started during the colonial era and today the
agricultural research system is probably the largest
research system in the world. In the current
scenario, the ICAR at the national level mainly aids,
promotes and coordinates research and education
activities throughout the country. The research and
education responsibilities at the state level rest with
the SAUs.
In addition to these main streams of research, some
general universities and other agencies like scientific
organisations related to agriculture, government
departments, voluntary organisations, private
institutions etc, participate in the nations research
efforts. The role of NARS in the development of
agricultural research is of great importance within
which all these organisations come.
Farmer to
Consumer Initiative
Social Entrepreneur
By Mandar R Walawalkar
Farmer to Consumer
Due to rapid urbanisation, land prices are
skyrocketing and due to high input cost, the
Social Entrepreneur
September-October 2014
43
Social Entrepreneur
The Advantages
As the name suggests, farmers can reach their
consumers directly, thus creating a bonding effect.
This can lay a strong foundation for the long
relationship ahead. This initiative reduces the final
cost of produce for the consumers, and at the same
time, it increases the output for farmers due to
a reduced number of mediators such as traders,
wholesalers and retailers, and their profit margins.
The benefits of reduced pricing and higher returns
can be enjoyed simultaneously. This is the USP of
this initiative. The initiative is creating a win-win
situation for both the parties which normally is
difficult to achieve in any such process.
Due to less handling, quality of produce can be
maintained. As time is also saved in repetitive
loading and unloading at traders, wholesalers
and retailers ends, this helps in maintaining the
freshness of the produce.
As the learned and health conscious consumers
in the urban areas wish to know more about the
origin of the produce they consume, this initiative
gives them the satisfaction of getting the produce
from the right source instead of blindly buying from
roadside vendors. The produce harvested in not
so fertile land treated with high doses of fertilisers,
or with contaminated water in highly polluted
environments, can cause health issues.
The Shortfalls
The biggest weakness of this initiative is feared to
be:, if the farmers do the marketing, their focus on
farming will shift from farming to marketing. Though,
there is a valid point in it, it can be overcome by
group activities and rotation of responsibilities.
It is very difficult for marginal or for that matter
individual farmers to implement this initiative as it
becomes very expensive in reaching the customer.
The answer is group activity which will create unity
among like-minded farmers and it is a known fact
that unity is the first step in solving any community
issues and progressing towards a common goal.
It is also feared that, due to this initiative small
retailers will loose their business. However, it is
not true. There is enough business for everyone as
this is a day-to-day and most essentially required
business. Due to the increased competition
between retailers and farmers reaching consumers
directly, both entities will have to be on their toes
in maintain the quality standards, service and most
importantly pricing. In the bargain, the consumer
will have the choice of better alternatives.
Social Entrepreneur
In India, we
have ample
requirements
of agriculturebased
commodities.
A country
with 125 crore
consumers and
increasing, will
never face out
of business
situations. This
will give the
assurance to
the farmers
about the
assured sale of
their produce
September-October 2014
45
Social Entrepreneur
Internet can
help the
farmers groups
reach their
potential
customers. The
e-commerce is
definitely going
to be the way
people prefer
to shop
Events
Calender
September
2014
11-14
November
2014
8-9
Jat Expo
Venue:Paragpur,
Jalandhar
November
2014
22-25
CII- Agro
Venue:Chandigarh
February
2015
14-15
February
2015
11-14
AgriRex
Venue:Chandigarh
February
2015
11-14
Horti Expo
Venue:Chandigarh
Case Study
Mangrove
Restoration
through PPP
By K S Rao
September-October 2014
Case Study
Mangrove Restoration activities carried out during 2007 in the vicinity of our Industry
Due to reduced
mangrove
cover, coastal
regions have
become more
vulnerable
to natural
calamities;
land is
becoming
infertile and
there is loss of
bio-diversity.
Mangroves
are a group of
salt-tolerant
evergreen
trees that grow
in tropical
and subtropical coastal
environments
49
Case Study
Since 2009,
Petronet
LNG Limited
had signed
various MoUs
with GEC and
Department
of Forests,
Government
of Gujarat,
towards the
implementation
of the
Mangrove
Restoration
Project
Avicennia Marina
Rhizophora Mucronata
Project Objectives
The mangrove restoration project envisages
achieving the important objectives:
To contribute towards increased understanding
and acceptance of the need to protect, conserve
and regenerate mangroves by local communities,
government and coastal industries;
To facilitate capacity building of coastal
communities and government for communitybased mangrove regeneration as part of
integrated coastal zone management.
Ceriops Tagal
Mangrove Genera
There are three genera of mangroves selected as
per the suitability of the area and to promote the
bio-diversity within that location:
Avicennia Marina;
Rhizophora Mucronata;
Ceriops Tagal;
PLLs contributions on Mangrove Restoration had been presented at ICZM 2011 by Shri KS Rao, Manager (Horticulture), Petronet LNG Limited, Dahej
Case Study
Shri KS Rao, Manager (Horticulture), Petronet LNG had presented a paper on Mangrove Restoration through PPP Model at International Workshop (2013), at
Gandhinagar, Gujarat, KS Rao, Head Horticulture, Petronet LNG Limited, Dahej, Gujarat
Business of Agriculture
September-October 2014
51
Case Study
Remote sensing
imageries,
aided with GIS,
may work as a
powerful tool
in locating the
bend angles
including river
network
September-October 2014
Case Study
53
Case Study
Mode of Flood
Class I: River with excess water within its capacity.
Class II: River full with excess water following seepage and bank erosion.
Class III: River with overflowing water filling the ditches and paleochannels following intense
bank erosion.
Class IV: River with overflow under violent water current causing multiple losses and
casualties.
The removal
of silt/sand
materials from
river beds will
expand the
river volume
tremendously
to accommodate
the excess
water during
flood
Case Study
Business of Agriculture
September-October 2014
55
Case Study
Case Study
The ridged bank should be used for agroforestry (25 m) followed by highways (40 m) and
railways (35 m) with obvious reasons;
Fish production in the managed river
compartments having a tentative 10 km length
with width-wise metallic nets would be an
aspiring long term activity fetching good price
fishes round the year following their marketing;
The cultivable land adjoining the river banks as
well as surrounding flood plain areas may be
managed as outlined elsewhere;
The sand/silt materials of the river bed, after
removal, may also be used either in filling the
ditches or heavy soil patches (tal land) preferably
to harmonise the soil productivity for cultivation;
Floodplain is characteristic to mixed farming
with livestock in Bihar and needs all possible
care and maintenance in order to sustain
livelihood;
Arrangement is desired to link drought
prone area, mostly south of the Ganga, with
excess flood water by lifting it mechanically in
succession from the altitudinal lows to altitudinal
highs in order to facilitate irrigation during
drought;
Perennial rivers may also be used for transport
(water ways).
Business of Agriculture
September-October 2014
57
Finance
Role of a Consultant
Essentially, consultant should be a friend,
philosopher and a guide to a farmer. He should
not have any interest in selling his products like
fertilisers, irrigation systems etc. He should
sincerely support the cause of farmers productivity
and profitability.
Consultants
also have to
revisit all
the issues
of feasibility
reports
to ensure
correctness
Finance
September-October 2014
59
Finance
Finance
Business of Agriculture
September-October 2014
61
Finance
There is an
urgent need
to develop the
entrepreneurial
and
organisational
competency of
farmers through
interventions at
various levels
of the supply
chain so as to
improve the
socio-economic
status of
farmers and
making farming
attractive
and business
oriented for
farmers
Farmers as Entrepreneurs:
FARMERPRENEUR
As per the
Vision 2030
report,
prepared by
the Indian
Institute of
Soil Science,
soil fertility
has dropped
to a third of
what it was 35
years ago due
to nutrient
imbalance
September-October 2014
Finance
63
Finance
Agricultural
produce
market
information is
one of the key
parameters
for farm
profitability
Finance
Business of Agriculture
September-October 2014
65
INTERNATIONAL
BRICS Agriculture
Trade Jumps Manifold;
International
Business of Agriculture
September-October 2014
67
Year
Volume
(Tonnes)
% of Total SA
Import
Year
Volume
(Tonnes)
% of Total SA
Imports
2008
2008
2009
50,146
3.81
2009
2010
135,127
10.72
2010
2011
90,851
4.91
2011
142,795
7.72
2012
320,396
18.86
2012
104,858
6.17
INTERNATIONAL
India continues
to be a major
rice exporting
country and
is the second
largest
producer of
rice (China
being the
leader). India
shipped out
10.3 million
tonnes of rice
in 2012, which
represented
a little over
a quarter of
world rice
exports of 38.6
mt during that
year
Year
Volume
(Tonnes)
% of Total SA
Imports
2008
8,276
2009
64,112
2010
3,705
2011
85,615
7.72
2012
43,716
6.17
BRICS
countries have
just concluded
their sixth
summit in
Fortaleza
and the
announcement
of the New
Development
Bank has
hogged the
limelight right
throughout
Business of Agriculture
September-October 2014
International
69
India-South
America
Trade Ties
INTERNATIONAL
An Insight on Marketing
Agricultural Produce and
Preventing Crop Loss
By Ramesh Kumar Sharma
International
September-October 2014
71
INTERNATIONAL
Dairy facts
tell that India
is a better
performer in
milk and milk
products than
Brazil
International
Reactions
Business of Agriculture
September-October 2014
73
INTERNATIONAL
International
Michigan Expected to
Produce Huge Apple Crop
It appears therell be an abundance of apples
this fall. The US Apple Association and the
Ag Department are both projecting big crops
in most of the big apple producing regions.
Unfortunately, tough weather conditions this
past winter and summer are causing some
production problems in parts of Michigan, the
nations No 3 apple grower.
This just might be the year for a big apple
crop in Michigan, but for Bryan Bixby with
Bixby Farms, this year isnt exceptional. Its a
fair crop, maybe average. Its a little less than
average, Bixby said.
Bixby says his crop was hit with too much
rain too early. Seventeen inches poured on his
orchard in June. It didnt help July was below
average in the Southwest portion of the state,
averaging eight degrees below normal.
Business of Agriculture
September-October 2014
75
INTERNATIONAL
Expansion Plans
for Argentinas Top
Agribusiness Firm
Grupo Los Grobo LLC, Argentinas biggest
agribusiness company, is looking to buy
farm service providers as the industry
consolidates, and may revive plans to sell
shares to fund expansion, its controller said.
Los Grobo will consider rekindling plans to
sell shares in Sao Paulo, shelved in 2011, to
help fund acquisitions and expansion in Latin
America and other countries, Chairman
Gustavo Grobocopatel said. The group may
also raise funds from its existing network of
contacts, he said, adding there is no time-line for raising money.
We have an aggressive growth plan, said Grobocopatel, 53, whose great-grandfather arrived in the Argentine
Pampas in 1915 among Eastern European immigrants known as the Jewish Gauchos, or cowboys. To achieve
it we will need extra capital from a partner or an IPO. Latin America needs a large key company and Los Grobo
should be one of those key players leading the agribusiness industry.
International
September-October 2014
77
Transportation,
Warehousing, Cold
Storage and Retailing
are vital Agricultural
Services, playing
crucial role in
supplying agriculture
produce to consumer