Framework and Map for Action Group on Building More Integrated Solutions: Inputs, Equipment and Advice Inputs —Seeds, Crop Protection, Fertilizer— and Advice Introduction The supply of fertilizer, improved seeds and crop protection has increased in India, with major private sector players active in product development and distribution. GOI has encouraged the use of productivity enhancing inputs, particularly through the subsidies which have grown from 6.0% to 11.6% of agricultural output values in the 2004 to 2010 period, driven largely by increases in subsidies to fertilizer and electricity. However, large gaps in both production and use of agricultural inputs still exist: use is concentrated in relatively few states and on a few crops. Also, according to GOI reports, input subsidies have resulted in overutilization of fertilizer and other inputs, which has led in turn to soil degradation, soil nutrient imbalance, environmental harm, and groundwater depletion, all of which have reduced the effectiveness of inputs. To realize productivity improvements and to gain access to higher prices, farmers need to access quality inputs combined with a responsive set of information, related to: production techniques that fit their agronomic area and cropping patterns; improved crop mix and effective business models; pricing and more profitable market opportunities; and post-harvest processes. It is extremely useful if this information is provided as part of a value chain business proposition, where the farmer can access improved inputs, advice on farm methods and business practices, finance and markets. New methods of transmitting this information, combining technology and touch, and greater integration of the four key ingredients—inputs, advice, money and markets—will be required if farmers are to build productivity and incomes. Key opportunities and challenges Supply of improved inputs has increased, but access by small farmers is limited. The total availability of commercially sold seeds increased from about 860,000 tons in 2000 to 3.2 million tons in FY2011. The crop protection chemical (CPC) market has grown to US$2 billion but CPCs are used on only 16.7 million hectares of the 120 million under cultivation. End use is concentrated in Andhra Pradesh, Uttar Pradesh and Punjab; these markets represent over 50% of CPC consumption in India, with cotton and paddy accounting for 68% of end use. The consumption of fertilizers has also risen substantially since the 1990s (Figure 1). The all-India average consumption of fertilizers has increased from 95 kg per ha in 2004-05 to 144 kg per ha in 2010-11. High variability has however, been observed in fertilizer consumption in different states: with high use in the Punjab and Andhra Pradesh at 237 and 226 kg per hectare, and low use in MP at 81 kg/ha, Orissa at 58 kg/ha, Rajasthan, 48.3 kg/ha and Himachal Pradesh, 54.8kg/ha. In some of the northeastern states, rates are below 5kg/ha. 1 Millions Figure 1. Consumption, Production and Imports of Fertilizers in India (2011) 30 25 20 Consumption of Fertilizers Production of Fertilizers Imports of Fertilizers 15 10 5 0 An estimated 60% of farmers—mainly small and medium—do not have access to reliable sources of information and advice. Of those who did source information, 16% received it from progressive farmers, followed by agro-dealers. Government extension services. Traditionally, government agencies provide extension services to farmers through about 110,000 extension workers operate in India, serving 120 million farmers located in 600,000 villages. Some estimate the government would have to increase the number of extension workers more than tenfold, to 1.4 million, to provide adequate coverage of the rural population. However, independent studies show that only a very small percentage of small farmers have access to these services; for example, 1% of small and marginal farmers in UP and 0.2% in Utttaranchal use public sector extension service workers as a source of information. 1 R&D centers and extension services focus on a narrow set of productivity enhancing measures. The quality of information and results-orientation are low, with little focus on responding to what farmers need in a granular or timely manner. Also, the information and advice provided by extension workers is normally not linked to the supply of improved inputs, market outlets, finance, crop or weather insurance, reducing the incentives for farmers to implement the improved practices. It is unclear that scaling up the existing public sector extension models would be fruitful given the issues of quality and effectiveness. Private sector companies have focused primarily on information on why and how to us e their proprietary inputs, concentrating on medium and large scale farmers and on areas in which profits can be assured, with little value add on improved farming practices or complementary inputs. However, some input and equipment companies are focusing on becoming agro-solutions enterprises, bundling offerings of their own and complementary inputs, advice on good farming practice, and services including soil testing. Some companies are beginning to use their networks of agro-dealers to provide these inputs and advisory services, along with facilitation of bank financing and insurance offerings to small and medium sized farmers. . Agricultural innovations, particularly in seeds, have increased rapidly since the 1980s. Government data and surveys of seed firms show that from about 1990 to 2010 the number of new seed cultivars available to farmers in maize, wheat, and rice roughly doubled, while the number of cotton cultivars at least tripled. Biotechnology innovations went from zero in the 1990s to five genetically modified (GM) traits in hundreds of GM cotton cultivars by 2008. Also, innovations have occurred in the cultivation and dissemination of banana tissue cultures, seed potatoes and other plant materials. These innovations have combined foreign technology and local innovation, with increasing engagement of the Indian private sector in research and development. 1 Kitinoja et. al. http://ucce.ucdavis.edu/files/datastore/234-1922.pdf 2 Private innovations have contributed to agricultural productivity and incomes. High performing hybrid seeds, for example, largely produced by the private sector, have had a major impact on productivity improvement of Indian farmers, and availability needs to be expanded. The Ministry of Agriculture estimates that overall, improved seeds typically contribute to 20% to productivity gains. Many innovations have occurred in vegetable seeds, further enhancing the higher incomes per hectare from fruits and vegetables compared to staple crops. In plant materials, Jain Irrigation’s development of banana tissue cultures has revolutionized this segment in India, with banana trees producing in 18 rather than 30 months, and with yields more than double. ITC’s Technituber seed potatoes in high end segments have led to major increases in earnings for farmers. The growth in hybrid cereal seed availability is crucial to food production and security in Indian agriculture. Total acreage under cultivation is expected to remain at about 140 million hectares, while demand for food grains are expected to increase from 203 million tons today to 285 million tons in 2020. Productivity enhancing measures will be key to achieving this growth in output. Figure 2. Production and Availability of Certified and Quality Seed (in millions tons) 1.8 1.6 1.4 1.2 1 0.8 0.6 0.4 0.2 0 Cereal Total Pulses Total Oilseeds Total Fibers Total Source: http://seednet.gov.in/material/IndianSeedSector.htm Integrated services through hub and spoke networks. Pioneered by the ITC e-choupals, several companies have built networks of agro-dealer franchises which provide inputs, information, advice and services to farmers. Some of these networks engage in selective procurement, others have incorporated facilitation of credit and insurance services. Companies expanding and deepening their agro-solutions networks include the ITC e-choupal network, theTata Kisan Sansars, and Mahindra Samriddhi, each detailed later in this note. These models leverage rural distribution systems to provide farmers with all or most of what they need to succeed, on a for-profit basis. Mobile-based information initiatives have emerged, with the objective of providing farmers with information and advice on their mobile phones. Mobile phone penetration in rural India is expanding rapidly, from 1.4 units per 100 people in 1995 to 51 per 100 in 2010. Most mobile-based applications provide information on weather, prices, farm practices and markets through SMS messages, with some use of voice messages. Some systems involve a help desk function, with agronomists on the other end of the phone to answer questions. Key players are: Nokia Ovi Life Tools, IFFCO’s Kisan Sanchar Limited and Reuters Market Light. However, early indications are that ICT solutions operating in isolation may have limited effectiveness in increasing farmers’ productivity and incomes. An IFC-commissioned report on ICT applications for agriculture suggests that farmers need advisory and market information and would be willing to pay for mobile based solutions. The report confirms that SMS-based information systems are easier to implement than internet-based information systems which require kiosks and connectivity, and which have had 3 difficulty being commercially viable in rural areas with dispersed populations. In early years of ITC echoupal operations, sanchalaks offered free information from internet based information on their computers; ITC is now exploring mobile and tablet based solutions. Voice-based information systems such as IFFCO’s IKSL circumvent illiteracy issues in delivering information and are easily accessible with mobile phones. However, the IFC study indicates that mobile information alone is not achieving the intended benefits in increased farmer productivity and incomes. The optimum solution appears to be for companies building value chains with large numbers of small farmers to offer a combination of extension, demos and ICT support in conjunction procurement to provide the inputs and incentives that farmers need to improve productivity and meet quality and traceability standards. Key measures to build shared value Key measures that private sector leaders can take to build shared value in providing farmers with inputs and advice include the following: Leverage agro-dealer distribution systems to provide a profitable and farmer-responsive mix of proprietary and other inputs, help desk and on-farm advice on best practice methods in key commodities and mixed farm models, and, where feasible procurement and origination services for credit and crop/weather insurance. Re-double R&D, piloting, production and distribution methods on hybrid seeds and plant materials which dramatically increase yields through plant protection and productivity enhancing qualities in cereals, fruits and vegetables, and pulses. Build PPPs in which private sector input, irrigation, equipment and value chain companies combine forces to offer government alternatives to traditional government extension—by combining complementary inputs, crop and farm model specific advice, irrigation, leased or owned farm machinery options, selective procurement, access to finance and crop and/or weather insurance. High impact company initiatives ITC eChoupal ITC eChoupal, an ITC initiative launched in, provides relevant and real-time information such as commodity local weather forecast information, customized knowledge such as farm management and package of practices, supply chain integration for farm inputs whereby harvested produce is screened for quality and demand aggregation to ensure competitive prices and efficient logistics, direct marketing channel for farm produce through lower transaction costs. As at end March 2011, the eChoupal hub and spoke system reached 38,000 villages in four states of India, serving a population of about 50 million people from 9 million households. This amounts to roughly 1 Sanchalak per 1,400 households. Tata Kisan Sansars Tata Chemicals (TCL) is a leading manufacturer of urea and phosphatic fertilizers and through its subsidiary, Rallis, has a strong position in the crop protection business. TCL created the Tata Kisan Sansar (TKS) franchises to provide farmers with fertilizer and a range of TCL and private label inputs. Over the past three years, TCL has expanded the offerings of the TKS franchises, moving to provide a increasing range of agro-solution services including agricultural services such as soil testing, crop advisory and foliar application services. Most recently, TCL has built a partnership with HDFC Bank to provide finance to farmers, with the intention of expanding financial service offerings. The 714 TKS franchises now provide inputs and services, with an expanding number engaged in agricultural loan origination. TCL indicates that the TKS network caters to over 7 million farmers in 140,000 villages in the north India. Each TKS franchise caters to 30 to 40 villages in the surrounding area. The centers are in turn serviced by about 30 resource centres, known as Tata Krishi Vikas Kendras or TKVK, with each resource centre serving 17 to 18 TKS centres. New services being pursued include IT enabled market information, and financial services for farmers with HDFC Bank. Farmers report yield increases of 15 to 4 35 percent as a result of the combined services and TKS operators report substantial increases in earnings with the addition of agricultural services and finance. Mahindra Samriddhi Centres Established in 2000, Mahindra Shubhlabh Services Ltd. (MSSL) forms part of the agribusiness arm of the Mahindra Group, best known as the market leader in tractors, with tractor sales of Rs. 202.6 billion in FY 2011. Mahindra and Mahindra is shifting from being a tractor company to an agro-solutions enterprise, through its value chain operations, the purchase of a small irrigation company, its Applitrac farm equipment operations and the Samriddhi Centres. To date, 155 Samriddhi Centres have been established; most are located with tractor dealers in commercial rural towns. Samriddhi Centres provide advice, services and a selection of inputs. Services include soil and water testing facilities, insurance and facilitation of finance. Samriddhi has established Mahindra Kisan Mitra (MKM), a website which provides farmers with the latest information relating to crops, weather conditions, loans, insurance schemes, commodity prices, government policies, news and events. Mahindra indicates that over 150,000 farmers have benefited from Samriddhi services; Mahindra plans to increase the outreach and impact to 10 million farmers by 2020. The Samriddhi Centres were begun as a means of adding value and building loyalty of tractor customers, Mahindra is now working to achieve profitability on at least some of its core offerings. DCSL DSCL’s agribusiness activities contributed about 66% of company’s revenues in 2010. In addition to its sugar and other agri-processing operations, DSCL has established Hariyali Kisaan Bazaars or “Rural Business Centers”, which provide a one-stop shop for agri-inputs, diesel and petrol, consumer goods, durables, apparels, insurance, agronomy advisory, credit, and contract farming. The objective is to provide good quality goods for different needs at best price in a convenient shopping format, gaining the trust of the farmers and other rural consumers. As at 2010, HKB counted a network of 275 outlets in seven Indian States reaching a million farmers. DSCL has been working on different hub and spoke models, and different combinations of product and service offerings to improve profitability. United Phosphorus Limited United Phosphorus Ltd (UPL) is a leading agro chemical and seeds company in the country, with annual revenues of US$700 million (FY2011). UPL’s Unimart centers provide training and advice, a range of UPL and other inputs, with a strong focus on productivity and income improving measures. Unimart services include expert visits on field, home delivery of products, knowledge services for farmers. Unimarts are intended to increase farmer productivity. At the same time, UPL distributors and dealers in areas surrounding Unimarts report substantial increases in sales overall, and of UPL products. Nokia Ovi Life Tools Nokia Ovi Life Tools, the agricultural component of Nokia Life Tools, uses SMS text-messaging technology on mobile phones to provide farmers with current information on weather, advice about crop cycles, general farming tips and techniques, and market prices for crops, seeds and fertilizers, all in their native language. Farmers can subscribe to the service for just 60 rupees (about $1.20) per month. After the successful pilot in 2009, Nokia Life Tools rolled out its agricultural service to 18 states in 11 regional languages. Independent research suggests the platform success is grounded its use of affordable, narrowband technology i.e. use of simple, not smart phones to disseminate information. As of October 2009, RML has a subscriber base of 170,000 customers in 12,000 villages. Reuters Market Light (RML) RML offers SMS-based data to farmers covering about 250 crop varieties across more than 1,000 local markets and 3,000 weather locations in India. The RML team consists of several hundred content professionals and agricultural market reporters spread across the length and breadth of the country, source local agricultural information and market prices. This information is validated and processed using best-in-class processes and custom-developed information technology systems to generate highly relevant, timely and actionable content that can be used by the farmers. RML initiated its services in 5 Maharashtra, with charges of Rs 175 for three months, Rs 350 for 6 months, and Rs 650 for one year. As at 2010, RML had 1 million unique subscribers in 40,000 villages in 13 states. An ICRIER study in 2009 found that RML subscribers had income increases of 5% to 25%. Nokia’s subscription fee to consumers is about $4 per month while Nokia Life charges consumers $1.20 per month. High impact collaborations IFFCO Kisan Sanchar Limited- Bharti Airtel: Kisan Sanchar Limited In 2008, Bharti Airtel, the leading mobile carrier, partnered with IFFCO, a large fertilizer cooperative, to form a joint venture company to provide five free daily voice updates on mandi prices, farming, dairy and animal husbandry techniques, weather forecasts, rural health initiatives and fertilizer availability. The main target clients are the 55 million farmers who are members of IFFCO. As at 2010, Airtel reported having 1.5 million subscribers for this service from 18 states. The service is marketed as part of a special mobile tariff package only on Airtel’s network with an IFFCO Kisan branded SIM card. There is also a helpline service, which gives farmers access to experts on farming and veterinary medicine. Nuziveedu Seeds NSPL is India’s largest seed producer, with an annual income in FY 2011 of more than Rs. 6 billion (US$110 million) and output of over 600,000 quintals of quality seeds spread over 89,000 acres. Today, about 100,000 seed growers across India partner with NSPL in producing seeds of world-class quality. NSPL maintains a strong relationship with farmers, by helping them produce high-yielding seeds with seed growers. NSPL is a pioneer in building hybrid cotton seed production bases at different locations i.e Gujarat, Andhra Pradesh, Maharashtra and Tamil Nadu, which helps minimize the production risks. NSPL is launching a series of PPPs with other private sector companies, to build small farmer productivity through innovative combinations of inputs, irrigation and advice. Public sector actions and policies During the Green Revolution, the Government of India (GOI) put in place a number of policies to increase food production—namely by offering subsidies to stimulate the use of fertilizers by Indian farmers. Between 50% and 60% of the increase in food grain production in India since the 1960s can be attributed to higher fertilizer use. However, subsidizing the costs of fertilizer has provoked increasing criticism during the past decade. Despite the GOI’s intention to reduce subsidies, expenditure on fertilizer subsidies increased from US$91 million 30 years ago to US$17.8 billion in FY2009. Agriclinics and Agribusiness Centres (ACABC) Scheme The Agriclinics and Agribusiness Centres (ACABC) represent a government-backed initiative to train progressive, entrepreneurial farmers to become “agripreneurs”, operating their own agriclinics. The central government provides 25%of the cost as a subsidy, states provide additional support and banks provide loans to agripreneurs to establish agriclinics. The objectives are to supplement the public extension system, increase the availability of inputs and services for farmers, and provide employment to agriculture graduates. The centers provide a wide range of services, such as soil, water quality, and input testing laboratories; plant protection services; vermin composting units; horticulture; veterinary clinic; and agroservice centers for farm machinery and primary processing. To date, ACABC has backed 41 agriclinic and agribusiness training centers, which provide two-month training courses to agricultural graduates. After training, the agripreneur sets up his or her “agriventure,” with one year “hand-holding” support from the training institutes. ACABC seem to be positively affecting farmer productivity in regions with agriclinics, and an independent survey by Global AgriSystem in 2008 showed that the majority of farmers are satisfied with services offered at the agriclinics. From 2002 to 2008, of the 75,000 agriculture graduates in the country, 4,152 have participated as agripreneurs, serving 2.3 million farmers in 26,000 villages. Each venture serves about 30 villages, with about 19 farmers per village (Global AgriSystem 2008). ACABC indicates that it has had some challenges due to high interest rates on loans to agripreneurs, competition with agrodealers, and issues with farmer payments, undermining commercial viability. 6 Krishi Vigyan Kendra (KVK), farm science centers, are multidisciplinary educational institutions at the district level, operated by a stage agricultural university, NGO or research organization, with funding and technical supervision from ICAR. As at 2009, 569 district centers were in operation, nearly one for each district in India. The performance of KVKs varies. Each KVK is in one of 15 agroclimatic zones. Within each center, around 20 scientists are employed from different disciplines. Farmer Field Schools (FFS). Established in the 1990s by the GOI in conjunction with FAO, FFS involve participatory training methods using a “learning by doing” approach: 20 to 25 farmers test and adapt farming practices to their local conditions, with weekly field observations and analysis, supported by an extension agent. Impact studies show reduced use of toxic pesticides and 4 to 14% higher yields for FFS graduates who cultivated cotton compared to the control. Despite some positive results, these schools have been plagued by funding issues, poor coordination among stakeholders, and over-reliance on local extension officers. Often, larger farmers have captured the benefits, with underrepresentation of smaller farmers and women in field school groups. Another weakness of the approach relates to limited impact and lack of scalability of the model; benefits remain with a limited number of farmers in the groups, with limited capacity to diffuse lessons. Main private sector players in this space and their present roles A. Providers of Inputs and Advice Company Services Farmers served Geographical footprint ITC echoupals Relevant and real-time information on commodity prices, weather, customized knowledge, packages of practices, supply chain integration for farm inputs one-stop solution shops with a wide range of agricultural inputs: fertilizers, seeds, and pesticides, agricultural services such as soil testing, crop advisory and foliar application services. Range of agri-related services under one roof. These include soil and water testing facilities, knowledge updates, insurance products, demonstrations to improve productivity, finance facilities and advice. Five free daily voice updates on mandi prices, farming techniques (including dairy as well as animal husbandry), weather forecasts, rural health initiatives and fertilizer availability Hub and spoke system reached 38,000 villages serving a population of about 50 million people from 9 million households Four states of India More than 7 million farmers in 140,000 villages In the northern and eastern part of India. Northern States: Uttar Pradesh, Punjab, Haryana, Bihar and Uttaranchal 150,000 farmer. Pune, Aurangabad, Khammam, Karimnagar, Mehabubnagar, Jamnagar, Haridwar, Nagpur, Raipur, Tadepalligudem 1.2 million active users 18 major states: Andhra Pradesh, Tamil Nadu, Kerala, Karnataka, Bihar, Chhattisgarh, Madhya Pradesh, Jharkhand, Uttarakhand, Haryana, Himachal Pradesh, Punjab, Uttar Pradesh, Rajasthan, Gujarat, Maharashtra, West Bengal and Orissa. Tata Kisan Sansars Mahindra Samriddhi IFFCO IKSL 7 Nokia Ovi Life Tools United Phosphorus Limited Nuziveedu Reuters Market Light Uses SMS text-messaging technology to provide farmers with information on weather, advice about crop cycles, general farming tips, techniques, market prices for crops, seeds and fertilizers Farm inputs like seeds, expert visits in the field, home delivery of products, library services, various farmer training programs 170,000 customers Across 18 states SMS-based data to farmers covering about 250 crop varieties across more than 1,000 local markets and 3,000 weather locations in India 300,000 consumers in more than 15,000 villages 13 states of India. B. Leading Private Input Supply Companies Name Input Supplied Distribution Model Geographic Footprint Coromandel International Fertilizers, Crop Protection, specialty nutrients like sulphur pastilles, water soluble fertilizers, micro nutrients and organic fertilizers. Seeds, Crop Protection Chemicals and Fertilizers The company produces 2 million MT urea annually. Network of Mana Gromor Centers and Mitramart Outlets (423 stores in AP and 20 new centers in Karnataka. Coromandel manufacturing plants in Andhra Pradesh, Tamil Nadu, Mumbai and Jammu. 700 Tata Kisan Sansars Northern States: Uttar Pradesh, Punjab, Haryana, Bihar and Uttaranchal Eleven states in northern, eastern, central and western regions of India and is the lead fertilizer supplier in the State of Rajasthan Tata Chemicals and Rallis Chambal Fertilizers and Chemicals Limited Dupont India and Pioneer Seeds The Company has a vast marketing network comprising 11 regional offices, 1,700 dealers and 20,000 village level outlets. Crop Protection Chemicals research and development, Seeds, Seeds R&D, Biosecurity for livestock and Tyvek for agricultural packaging Production facilities in Gujarat and Hyderabad. Distribution network? Crops: Rice and sugarcane 8 DSCL and Bioseed Genetics (Acquired Nandi in 2009) Seeds, Crop Protection Chemicals and Fertilizers Bayer CropScience Crop Protection Chemicals (11% Indian market), Seeds Distributors and agrodealers United Phosphorous Ltd. Syngenta India Crop Protection Chemicals (Market share: 6%) Insecticides, fungicides, herbicides and seed treatment chemicals, Seeds, Research and Development Distributors, agrodealers and Unicentre initiative Hariyali Bazaar business centers, reaching 1 million farmers and 4 million rural families Bioseed breeds field crops: cotton, corn, rice, millet, pigeon pea and vegetable crops such as okra, tomato. North, West & East India with marketing offices at 22 locations, 3,000 channel partners and 30,000 retailers. 170 outlets in 7 Indian states for fertilizers Bioseed: 2,879 distributors in 18 states, from Orissa to Uttar Pradesh, West Bengal and Assam. Bayer CropScience currently interacts with 10 million farmers across India and has about 2,700 distribution outlets. Krishi Shakti, “crop health centers” providing crop diagnostics, soil testing, training, demonstration plots Main crops: Corn and soybeans, field crops, vegetables, flowers Largest input suppliers in India by annual sales of Inputs (FY2011) in millions Coromandel International $1,400 Tata Chemicals and Rallis $811 Dupont India and Pioneer $700 DSCL and Bioseed Genetics $535 Bayer CropScience $700* United Phosphorous Ltd. $401 Syngenta India $372 $0 $500 9 $1,000 $1,500 Main potential objectives of action group by end 2015 Use, reinforce agro-dealer networks to provide improved inputs, advice on good practices, and possibly be agents for crop/weather insurance and credit. Back agro-entrepreneurs in agro-services for those segments that farmers are willing to pay for eg soil testing Beware of ICT only solutions—need to combine with face to face advice, improved inputs, market links Tie advice to value chains to help farmers gain access to attractive markets, align incentives and realize increased earnings for farmer and value chain company. Build PPPs as substitute for government extension, providing inputs, irrigation, farmer-responsive advice on farm practices, mixed farming business models, markets and post-harvest methods. Main potential measures of success Number of small and medium farmers receiving bundled packages of improved inputs and tailored advice. Number of farmers participating in PPPs emanating from the platform Value chain operations which combine extension, demos and ICT. Costs and profitability of models used. Productivity and income increases of participating farmers. 10 Farm Mechanization Tractor sales. Manufacturers sold 605,000 tractors in India in 2011/2012 with revenues of US$4.4 billion. The CAGR has been about 20% in the last three years. Rising food prices and credit availability combined with structural drivers including farm labor scarcity, steady demand for replacements, and growing non-agricultural use of tractors have led to an increase in tractor sales, supported by government initiatives to facilitate the purchase of farm machinery by farmers. Trend in Yearly Tractor Sales Volumes Annual tractor sales (domestic (Domestic + Export)and export) Low levels of tractor utilization. Despite the increase in sales and the benefits of farm mechanization, tractor penetration in India is low relative to other markets, particularly among smallholder farmers, with strong potential for expansion. For farmers with up to 5 acres of land, tractors are used on only 1.4% of their 144 million in land. For medium sized farmers with 5 to 20 hectares, tractors are utilized on only 21.9% of their 183 million acres. Tractor penetration in India by landholding size Large farmers >20 acres Number of farmers Total land size (acres) 1,200,000 26,400,000 46.2% 20,400,000 183,600,000 21.9% 144,000,000 1.2% Tractor penetration in India by landholding size 1% Medium farmers 5-20 acres 17% Small farmers 2.5-5 acres 22,800,000 19% Marginal farmers <2.5 acres 63% 75,600,000 Tractor penetration on every 1,000 ha About 142 acres of smallholder land could use tractors US World India 0 10 20 30 40 11 Level of mechanization of different operations in Indian agriculture. Correlated with tractor use, between 30 and 40 percent of land benefits from farm mechanization for soil working and seed preparation, seeding and planting. Similar levels of farm mechanization are found in plant protection and irrigation, treated in other sections of these action maps. Operation Current Mechanization Soil working and seed bed preparation 40% Seeding and planning 29% Plant protection 34% Irrigation 37% For wheat and rice – 60-70% For other crops – Less than 5% Harvesting and threshing These low levels of farm mechanization, particularly among small and medium farmers, exists in spite of significant productivity improvement from farm mechanization. Some examples are provided below: Machine-wise increase in productivity Machine-wise increase in productivity Laser leveler 11% Rice transplanter 20% Rotavator 30% The main reasons for the low use of tractors and other farm equipment in India are: Low purchasing power of farmers relative to capital investment, operational and maintenance costs Fragmented land holding of farmers with it difficult to justify even a small tractor for farmers of under 5 acres or under 3 acres of well-irrigated land. Seasonal usage making both ownership and leasing difficult to justify for small and medium holdings, unless off farm uses are leveraged. Lack of knowledge among small and medium sized farmers on the benefits of farm mechanization Shift to high hp tractors and production of low cost tractors. India has been predominantly a 31 to 40 hp market, which represents 42% of the industry. However, a shift to higher hp tractors has occurred over the last five years. The share of 40+hp tractors has increased from 29% in FY05 to 44% in FY11. The share of tractors above 40 hp has more than doubled over the last ten years due to the use of higher hp tractors in the south particularly for rice, and the purchase of higher hp replacement in the north. Segment-wise sales of Indian tractors FY05 FY00 4% FY10 1% 0% 0% 8% 15% 16% 20% 26% 13% 21% 28% 42% 55% 51% <20 HP 21-30 HP 31-40 HP 12 41-50 HP >51 HP On the other end of the market, Mahindra & Mahindra, Escorts, TAFE and Sonalika Group have recently begun to manufacture smaller HP tractors. While small farmers with under 5 ha cannot afford to own a tractor, farmers with 5 to 20 acreage, the largest segment in terms of land holdings, can take advantage of the availability of small tractors. Smaller farmers would need to rely on leasing of tractors and farm equipment. In addition to the productivity benefits, and utility as agricultural labor becomes scarce, a tractor can be a steady and reliable source of supplemental income, through rental and transport of goods and people, earning Rs. 750 per day. Key measures to build shared value For medium sized farmers with 5 to 20 hectares, tractor and farm equipment manufacturers can aggressively target this market for sale of smaller tractors and small equipment. For small farmers, equipment manufacturers can promote agro-service companies engaged in the lease of tractors, equipment for land preparation, seeding and planting, and services for spraying and soil testing. Equipment manufacturers need to expand development work to offer lower cost farm equipment, suited to the needs and payment capacities of small and medium sized farmers. Tractor manufacturers or others could create dealerships for used tractors, given the robust replacement market. Banks and NBFCs can work with equipment manufacturers to offer packaging of financing and technical support to help ensure viable combinations of equipment and business models. Financial institutions can facilitate the purchase of tractors and farm equipment by groups of small farmers through joint liability groups and can finance second hand tractors. Public sector actions and policies NABARD Agriclinics for farm equipment. On behalf of GOI, NABARD has launched an Agriclinic Scheme to finance private entrepreneurs or joint liability groups to purchase tractors and related farm equipment for lease to small and medium farmers. NABARD will finance, through participating banks, 5,000 agriclinics a year for agricultural graduates of joint liability groups to purchase basic equipment necessary for crop production and equipment repair. Total costs for agro-service centers are expected not to exceed Rs. 1 million for individuals and Rs. 5 million for joint liability groups. National Mission on Agricultural Mechanization (NMAM) aims to bring farm mechanization to rural villages promoting ‘custom hiring services’ through a rural entrepreneurship model. The mission aims to increase the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low. The initiative seeks to bring hi-tech, high value and hi-productive agricultural machinery to farmers through the creation of hubs providing farm equipment and offering demonstrations and capacity building. Main private sector players While the Indian tractor market is highly organized and among the largest in the world, the farm equipment market is dominated by unorganized players accounting for more than 50 per cent of market share, selling products by small scale local manufacturers, and Chinese companies. In tractors, Mahindra & Mahindra dominates the market with a 40.1% market share followed by TAFE (23.2%) and Escorts 10.2%. With relaxation of the FDI in agriculture, some large MNCs—AGCO Corporation, CNH Global and John Deere—have entered the Indian market. Most have built their presence in India through wholly-owned subsidiaries or through joint ventures and technical collaborations with Indian companies. 13 Market Share of Tractor OEMs Market share of tractor OEMs While the tractor industry has relatively low entry barriers in terms of technology, costs involved in branding, distribution network and spare parts availability act as barriers. Also, as most of the sales are through word-of-mouth, new entrants may take time to establish themselves since the leading Indian players, particularly Mahindra, have built solid brand reputations. Mahindra & Mahindra. Mahindra relies on a network of dealers for OEM sales and for repair and lubrication of tractors. Mahindra Finance also has a network of nearly 500 branches to provide finance for tractor and other purchases. DCC can leverage this network for sale of lubricants to the aftermarket. Most Mahindra dealers and Mahindra Finance branches operate at district levels, meaning that they probably only reach 10% of tractor owners for after sales repair and maintenance. Mahindra’s distribution Mahindra’s networknetwork distribution Maharastra Gujarat Punjab Haryana Uttar Pradesh Andra Pradesh Madhya Pradesh Rajasthan Kerala Tamil Nadu Karnataka Orissa Assam Bihar Uttarachal Goa Chattisgarh Delhi Chandigarg Tractor Mahindra Finance EPC Irrigation 0 50 100 150 200 # distribution centers 250 Mahindra is also building an enhanced value proposition to farmers by providing services through its Samriddhi Centers, often located alongside major tractor dealerships. The Samriddhi Centres offer farmers a wide range of agri-related services under one roof. These include soil and water testing facilities, knowledge updates, insurance products, demonstrations to improve productivity, finance facilities and advise. As part of this initiative, the company has also set up Mahindra Kisan Mitra (MKM), a website which provides farmers with the latest information relating to crops, weather conditions, loans, insurance schemes, commodity prices, government policies, news and events. According to Mahindra, over 150,000 farmers have benefited from Samriddhi Services; Mahindra plans to increase the outreach and impact to 10 million farmers by 2020. 14 Main potential objectives of action group by end 2015 Company actions Major tractor and equipment manufacturers expand the purchase and use of tractors by at least one million medium sized farmers of the 16 million farmers with 5 to 20 acres which are not yet using tractors. Major tractor and equipment manufacturers promote dealers and/or at least 10,000 agro-service entrepreneurs, for leasing of tractors and farm equipment, spraying, soil testing and other agroservices to small farmers—each with an outreach of 500 to 1,000 farmers, with total outreach of 5 million farmers. Major equipment manufacturers innovate in the production of low cost farm equipment, including through collaborations with informal sector agro-innovators and Chinese companies which hold over 50% of the farm equipment market. Equipment manufacturers leverage their dealer networks to provide together value adding services to farmers on a for-profit basis, with the objective of reaching 10 million farmers by 2015. Collaborations Financial institutions in collaboration with major manufacturers expand financing of tractors and farm equipment, including financing of agro-service companies, joint liability groups, and purchasers of used tractors, with the objective of financing at least 4 million farmers in the 2013 to 2015 period. Equipment manufacturers join with irrigation and input supply companies and companies providing information and advice to build area development programs, including through PPPs. Government policies and actions Government maintain the 25% to 50% subsidies for small tractors and farm equipment maintained. NABARD and other programs to finance agro-service companies continued, to include franchises and dealers of manufacturers, to enable the buildup of agro-service networks. Main potential measures of success Increase in use of tractors and related equipment by small and medium sized farmers, through purchase and lease. Number of profitable leasing and agro-service enterprises and franchise operations created, overall and by company. Estimated increases in yields and incomes to small and medium sized farmers as a result of farm mechanization and related services. 15 Irrigation Key opportunities and challenges Irrigation is one of the most important inputs for enhancing agricultural productivity. In India, 48% of the geographical area receives less than 1,000 mm of annual rainfall. Rain is restricted to four to five continuous months, and even during the monsoon, rainfall is erratic. Irrigation is a key input in agriculture. While India has the largest irrigated area in the world, the coverage of irrigation is only about 35% of the gross cropped area. India’s overall irrigation potential is 140 million hectares, out of which only about 109 million ha have been created, and around 80 million ha utilized. Gross cropped area, net sown area, net irrigated area and gross irrigated area, 1950-51 to 2008-09 Gross Irrigated area as a percent of gross cropped area has increased from 34% in 1990-91 to 45% in 2008-09. However, there are wide variations in irrigation coverage across states and across crops. The states with the lowest percentage of gross cropped area irrigated are Assam, Jharkhand, Kerala, Maharastra and Himachal Pradesh. Irrigation coverage by state in 2008-09 (%) 98% 100% 85% 90% 76% 80% 70% 56% 58% 60% 50% 41% 40% 27% 30% 17% 19% 20% 10% 32% 33% 35% 35% 20% 10% 4% 0% Source: Directorate of Economics and Statistics, DAC 16 46% 48% 49% 61% However, the main gaps in gross hectares sown vs. irrigated are found in Maharashtra, Rajasthan and Madhya Pradesh, which represent 43% of non-irrigated cropland, followed by Karnataka, Gujarat, Andhra Pradesh, Uttar Pradesh and Orissa which represent 31% of non-irrigated land. State-wise irrigation gap by state in 2008-09 (‘000 hectares) 20,000 18,000 hectares ('000) 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 - Source: Directorate of Economics and Statistics, DAC While Punjab, Haryana, Uttar Pradesh, Bihar, Tamil Nadu and West Bengal have more than half of the cropped area under irrigation, Odissa, Rajasthan, Madhya Pradesh, Karnataka, Chhattisgarh, Himachal Pradesh, Maharashtra, Kerala, Jharkhand and Assam have very low acreage under irrigation. Among crops, the most important cereals, pulses and most oilseeds are grown under rainfed conditions. Crop-wise irrigation coverage, 2008-09 (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 91% 94% 74% 75% 56% 59% 48% 1% 5% 9% 9% 16% 21% 25% 27% 34% 35% Source: Directorate of Economics and Statistics, DAC 17 Crop-wise irrigation gap, 2008-09 (%) Hectares ('000) 70,000 60,000 50,000 40,000 30,000 20,000 10,000 - The predominant irrigation method in India is flood irrigation, in which the efficiency of water use is only 35% to 40% due to distribution losses. Flood irrigation is more labor intensive and results in more weeds and higher salinity of land. Micro irrigation systems (MIS) need to be enhance, because despite promotion, NAAS indicates that only about 0.5 million ha are currently under micro-irrigation (NAAS 2009). New micro irrigation systems include drip and trickle systems, surface and subsurface drip tapes, micro-sprinklers, sprayers, microjets, spinners, rotors and bubblers. MIS increases the efficiency of water use by 80% to 90% relative to conventional flood methods and can result in yield increases of 30% to 200%. MIS increases the area that can be cultivated with the available water, increasing output. Comparison between conventional method of irrigation with drip irrigation Crop Increase in yield using Water saving using drip irrigation (%) drip irrigation (%) Banana 52 45 Grapes 23 48 Pomegranate 98 46 Sugarcane 48 56 Tomato 50 39 Cotton 114 53 Lady`s Finger 16 40 Brinjal 14 53 Cabbage 90 60 Papaya 28 68 Chillis 44 62 Mango 63 32 Onion 130 23 Paddy 68 55 Pigeon Pea 180 40 18 Challenges: Micro-irrigation systems Financing. In accessing MIS, most state governments offer subsidies of about 50%. Drip irrigation companies such as Jain have created bridge financing mechanisms with banks to cover the period between getting the farmer drip and getting paid the subsidy. However, over the past two years, the lag in receiving the subsidies has moved from an average of six months to well over one year in several states, making it untenable for drip irrigation companies to carry the accounts receivables on their books. Intensive support. In providing small farmers with drip irrigation, experience demonstrates that irrigation companies need to proactively promote the use of MIS, work closely with small farmers in providing tailored solutions, provide training to farmers on maximizing yields in different cropping patterns, and use lead farmers as ambassadors to show the value of drip irrigation in increasing yields and conserving water. Irrigation and water management In addition to MIS, the large gap in land which lends itself to irrigation and the supply needs to be addressed. This issue will be treated by the action group on resource management, which will focus on water. For arid and semi-arid areas, the solutions include watershed management systems, community water capture solutions and other means. These issues will be treated by the action group on resource management. Key measures to build shared value Company initiatives Key action measures for the platform to create shared value include: Initiatives by irrigation companies to extend the reach of MIS to small farmers, particularly in geographies in which a large gap exists in potential and actual areas under MIS. Objective: 50 million hectares under drip irrigation by 2020. Collaborations Expand distribution systems of MIS companies, and customize distribution systems of farm machinery and input supply companies to respond to the needs of small farmers in drip irrigation, inputs, advice, crop/weather insurance and financing Irrigation companies working with value chain companies to provide MIS, inputs, advice and procurement. Policy change and government actions Get the delays in the state subsidy disbursement system corrected, or remove subsidies for MIS. Build solutions to power shortages to increase the area in which MIS can be used. Encourage PPPs for area development with watershed management, community water collection, and integrated input, advice and value chain solutions. High impact company initiatives Jain Irrigation’s products and services provide benefits to over 2.5 million farmers. Government subsidizes 50% of the cost of the micro-irrigation system, Jain organizes bridge financing from banks. Jain Irrigation trains about 60,000 farmers per year. Netafim. The micro irrigation project in Adra Pradesh covers 434,352ha, reaching 187,000 farmers as of March 2008 with plots of less than 1ha cultivating fruits, vegetables, spices, field 19 crops. The total cost of the project is $249 million, and has governmental support through subsidies of 50% to 70% on the irrigation systems. High impact collaborations—existing and proposed Jain irrigation working with Coca Cola in Unnati project. The Project encourages sustainable, modern agricultural practices and helps double mango yields, thereby increasing the income of farmers through the adoption of Ultra-High Density Plantation (UHDP) practice. UHDP is a farming practice that leads to mango orchards attaining their full potential in 3-4 years and also allows nearly 600 trees to be planted in an acre instead of the conventional method of planting 40 trees in an acre. About 50,000 farmers are participating in the project. Netafim India is working with Bharti Wal-Mart in its Direct Farm Program. Bharti Wal-Mart is training farmers to source high quality differentiated fresh produce. Netafim provides training and assistance regarding irrigation, water solutions and greenhouses to 50,000 farmers. Key existing and proposed public sector actions and policies to address constraints Micro Irrigation subsidies. Procurement of drip and sprinkler irrigation system is limited to 5 hectare/ farmer, except in Gujarat. The subsidy covers 50% of the cost for general category farmers and 60% for small and marginal farmers. Main private sector players in this space and their present roles India’s irrigation market totals US$550 million. In 2011, Jain Irrigation had 53% market share and Netafim 20%. In 2011, Mahindra purchased a 38% share in a small irrigation company, EPC, which realized US$10 million in sales in FY2011. EPC had a 1.8% market share. Main potential objectives of action group by end 2015 Extend the reach of MIS, micro-irrigation systems, to small farmers, particularly in geographies in which a large gap exists in potential and actual areas under MIS. Objective: 10 million additional hectares under drip irrigation by 2020. Expand distribution systems of MIS companies, and customize distribution systems of farm machinery and input supply companies to respond to the needs of small farmers in drip irrigation, inputs, advice, crop/weather insurance and financing. Irrigation companies working with value chain companies to provide MIS, inputs, advice and procurement. Build solutions to power shortages to increase the area in which MIS can be used. Build area development PPPs with watershed management, community water collection, and integrated input, advice and value chain solutions. Company initiatives Initiatives by irrigation companies to extend the reach of MIS to small farmers, particularly in geographies in which a large gap exists in potential and actual areas under MIS. Objective: 50 million hectares under drip irrigation by 2020, 20 million by 2015 . Expand distribution systems of MIS companies, including TA, training, R&D Collaborations Customize distribution systems of farm machinery and input supply companies to respond to the needs of small farmers in drip irrigation, inputs, advice, crop/weather insurance and financing Irrigation companies working with value chain companies to provide MIS, inputs, advice and procurement. 20 Policy change and government actions Reduce delays in the state subsidy disbursement system to 60 days, or remove subsidies for MIS. Build PPPs for area development with private sector delivery of watershed management, community water collection, and integrated input, advice and value chain solutions. Potential measure of success by year and by participating company: New hectares under MIS Number of farmers with new hectares under MIS Number of farmers under value chain solutions with MIS companies Increased productivity and earnings by participating farmers. Profitability of these ventures Time to get subsidies for MIS, by state 21 Annex A. Main seed suppliers in India by annual sales (seeds) in FY 2011 Annual Sales (Seeds) USD FY2011 Company Type of business National Seed corporation Breeder, producer and distributor USD 117,789,000 Nuziveedu Hybrid seed producer USD 110,000,000 Rasi Seeds R&D and hybrid seed breeding USD 80,500,000 Cotton, rice, millet, wheat Ganga Kaveri Hybrid seed producer USD 66,600,000 Corn, sunflower, cotton seeds, pearl millet, grain sorghum, rice, tomatoes, okra, chillies and watermelon USD 66,200,000 Maize hybrids USD 61,838,800 Corn, Mustard, Pearl millet, Rice, Sunflowers USD 59,500,600 Hybrid Rice, Cotton, Pearl Millet, Corn, Grain Sorghum as well as composite varieties of Mustard USD 54,366,900 Cereals, Pulses, Oilseeds, Fiber crops and vegetable Monsanto India Limited (Dekalb) Pioneer-PHI Seeds (Dupont) Bayer Bioscience (Bayer CropScience) National State Farm Corporation of India Syngenta (Seeds division) Namdhari and Namdhari Fresh Mahyco Hybrid seed and agbiotech R&D sales R&D and sales of hybrid seeds Hybrid seed R&D, seed coating chemicals, seeds biotech Production of foundation and certified (hybrid) seeds R&D Breeder, producer and distributor Cotton technology sales to seed companies USD 54,151,400 USD 40,000,000 USD 30,000,000 Advanta (UPL) Hybrid R&D USD 23,000,000 Metahelix (Rallis) Hybrid R&D USD 14,389,000 Bioseed Genetics (DSCL) Hybrid R&D USD 6,678,590 22 Focus Crops 600 varieties of 60 crops and hybrids of cereals, millets, pulses, oilseeds, fodder, fibers and vegetables. Cotton, rice paddy, maize, bajra, jowar, sunflower, wheat, mustard and vegetable seeds Corn, oilseeds, sunflower, hybrid rice, and flowers, as well as vegetables, including tomatoes, hot pepper, cucumbers, cabbage, cauliflower, sweet corns, beans, and watermelons 500 hybrid and 20 varieties of vegetable seeds Cotton Sorghum, millet and corn, fruits and vegetables such as mustard, tomatoes, chilies and okra, as well as cotton. Hybrid maize, cotton and rice paddy Corn, rice, millet, cotton, sorghum, sunflower, pigeon pea, tomato, okra, pepper, and other F&G Annex B. Leading Crop Protection Chemical suppliers 60% 50% 11% Bayer Crop Science 40% Rallis 10% 30% 20% 10% 0% Syngenta 9% Dharti 7% UPL Dow Agro 6% CP 5% 5% Crop Protection Market Share 23 Annex C. ICT Applications for Agriculture (Source: ACDI/VOCA 2010) Sources Advanta India Annual report, 2011. http://www.advantaindia.com/18AnnualReport.pdf Advendus, Crop protection Industry report, 2011. http://www.avendus.com/Upload/NewsLetter/Avendus_LifeScience_Leader_June_2011.pdf Agrifinance report 2007 http://www.ruralfinance.org/fileadmin/templates/rflc/documents/1176390813459_Agri_Revolution_Confer ence_Summary_Report.pdf Basant Agro Tech India http://www.krishisanjivani.com/pdf/BASANT-AGRO-AR-2011.pdf BASF India Annual Report 2010-11. http://www.india.basf.com/pv_obj_cache/pv_obj_id_B9F97C765992920AC774525EC03067DCC 83F2000/filename/AnnualReport2010-2011.pdf BASF Samruddhi: http://www.agro.basf.com/agr/APInternet/en/content/sustainability/best_practices/samruddhi/india-agriculture-project BASF India, CRISIL Company Report 2010 http://www.nseindia.com/content/corporate/eq_BASF_base.pdf Bayer CropScience India Annual Report 2011. http://www.bayergroupindia.com/pdf/Bayer%20Cropscience%20Annual%20Report%202010_11. pdf Bayer CropScience Business Line article. http://www.thehindubusinessline.com/features/investment-world/stock-insight/article2840437.ece Coromandel annual report 2011. http://www.coromandel.biz/downloads/annualReport_10_11.pdf Crop Protection Chemicals http://www.indiaprwire.com/pressrelease/agriculture/2010051150359.htm Deepak Fertilizers http://www.dfpcl.com/dfpcl/pdf/Financial-Reports/Annual-Report-11-12/DFPCL%20%20Financial%20Table%20-%20Q4%20%20FY%2012.pdf DSCL Corporate Presentation May 2012. http://www.dscl.com/images/pdf/dscl_corporate_presentation_may_2012.pdf DSCL Bioseeds http://www.shrirambioseed.com/bioseed-reach.html Dupont Fact Sheet http://www2.dupont.com/India_Country_Site/en_IN/assets/images/Innovation_Center/DuPont%20India% 20factsheet.pdf Fertilizers http://www.usitc.gov/publications/332/executive_briefings/EBOT_IndiaAgSubsidies.pdf Fertilizer Companies: http://business.mapsofindia.com/national-fertilizers/ 24 Gharda Chemicals Distributors: http://www.gharda.com/agrochemical.html Information: http://climateagri.org/supporting-institutions/supporters-for-conference/ghardachemicals-limited/ Glendenning, Claire, J. Suresh Babu and Kwadwo Asenso-Okyere, “Review of Agricultural Extension in India, Are Farmers’ Information Needs Being Met?” IFPRI Discussion Paper 01048, December 2010. Grossman, Nick and Dylan Carlson. Agriculture Policy in India: the role of input subsidies. USITC Executive Briefings on Trade, March 2011. Gujarat Fertilizers and Chemicals Ltd. 49th Annual report 2010-11 http://www.gsfclimited.com/reportimages/68/ar201011.pdf Gujarat Narmada Valley Fertilizers Company Ltd. https://www.gnfc.in/PDFandWORD/GNFCRESULTsFY11-12.pdf IFFCO . A Rich Harvest: The Win-Win Initiative to Help Farmers. http://forbesindia.com/printcontent/22412 India Input Supply Subsidies, Fertilizer and Electricity. http://www.usitc.gov/publications/332/executive_briefings/EBOT_IndiaAgSubsidies.pdf Kaveri Seeds. http://www.kaveriseeds.in/Audit%202011-12.pdf Kitinoja, Lisa, Sunil Saran, Susanta K Roy and Adel A Kader. “Postharvest technology for developing countries: challenges and opportunities in research, outreach and advocacy.” Wiley Online Library: 26 January 2011 Krishna Kumar, P S . “Mapping & Preliminary Evaluation of ICT Applications Supporting Agricultural Development, an IFC sponsored study in Uganda, India & Indonesia.” 2010. Nath Seeds. http://www.nathseeds.com/publicshare/20120110-4325-nsl-annual-report-2011.pdf National Fertilizers Ltd. http://www.nationalfertilizers.com/images/pdf/perf.pdf National State Farm Corporation of India http://dpe.nic.in/sites/upload_files/dpe/files/survey1011/survey01/volume2/107.pdf Monsanto India. Annual report 2011-12 http://www.monsantoindia.com/annualreports/2011/MIL%20AR%202010-11%20(low%20res%201).pdf Pepsico. http://pepsicoindia.co.in/media/Press-Releases/release_01_19_12.aspx Pioneer (Dupont) http://www.thehindubusinessline.com/todays-paper/tp-agri-biz-and-commodity/article983658.ece Pray, Carl E. and Latha Nagarajan. “Innovation and Research by Private Agribusiness in India” IFPRI Discussion Paper 01181, May 2012 Rabobank, Agri-biotech research 2008 http://www.rabobank.com/content/images/Rabobank_Indian_Agribiotechnology_intro_Jan2008_tcm4355736.pdf Rabobank, Article, India PR Wire, 2010 http://www.indiaprwire.com/pressrelease/agriculture/2010051150359.htm 25 Rallis India Financials 2011 at http://www.rallis.co.in/financial/Consolidated_310312.pdf GEPL Capital Research Rallis India Limited at http://breport.myiris.com/GEPLCAP1/RALINDIA_20120301.pdf Rashtriya Chemicals and Fertilizers Ltd. http://www.rcfltd.com/webdocs/mkkumar/RCF_Annual_Report_2010-11-bilingual.pdf Sauerhaft, Beth and Ian Hope-Johnstone. “Scaling Up Agricultural Supply Chains in the Private Sector,” June 2012 http://www.ifpri.org/sites/default/files/publications/focus19_08.pdf Seed industry in India. http://www.scribd.com/doc/65176942/India-Seed-Industry-Analysis http://seednet.gov.in/Material/Structure.pdf http://seednet.gov.in/material/IndianSeedSector.htm#Seed Production System In India Sharma, Vijay Paul and Hrima Thaker. „Fertilizer Subsidy in India: Who are the Beneficiaries?“ W.P. No. 2009-07-01, July 2009, IIMA. http://www.iimahd.ernet.in/publications/data/2009-07-01Sharma.pdf Spielman, D., D. Kolady, A. Cavalieri, N. Chandrasekhara Rao. “The Seed and Agricultural Biotechnology Industries in India, An Analysis of Industry structure, Competition and Policy Actions,” IFPRI Discussion Paper 01103, July 2011. http://www.ifpri.org/sites/default/files/publications/ifpridp01103.pdf State of Indian Agriculture 2011-12 Report Syngenta India Annual Report http://annualreport2010.syngenta.com/en/downloads/PDFs/Syngenta_AnnualReview2010.pdf Syngenta India Revenues 2010-11 http://www.indiainfoline.com/Markets/Company/Fundamentals/Management-Discussions/Syngenta-IndiaLtd/532409 Tata Chemicals Annual Report 2010-11. http://www.tatachemicals.com/investors/downloads/annual_reports/annual_report2010-11.pdf United Phosphorus Limited Audited financials. http://www.uplonline.com/investors/UPLMarQtrResults.pdf Annual Report 2010-11. http://www.uplonline.com/investors/annualrep2010-2011.pdf Income by segment. http://www.uplonline.com/investors/UPLSegmentMar11.pdf UPL Unimarts. http://www.business-standard.com/india/news/upl-aims-to-double-its-agro-chemical-bizin-india-in-next-3-yrs/428913/ Zhenwei Qiang, Christine, Siou Chew Kuek*, Andrew Dymond and Steve Esselaar. “Mobile Applications for Agriculture and Rural Development.” ICT Sector Unit World Bank December 2011. Zuari Industries Ltd. 26 http://zuari.in/Reports/ZIL%20-%20Financial%20Results%202011-12.PDF Useful sources for farm mechanization: S.D. Kulakarni. Mechanization of Agriculture - Indian Scenario, Central Institute of Agricultural Engineering (CIAE) Italian Trade Commission, Agricultural Mechanization in India Profile 2010. ICRA, Indian Tractor Industry. Cyclical moderation in growth ahead. Update February 2012 Report of the Sub-Group on Agricultural Implements and Machinery for Formulation of 9th Five Year Plan, Government of India 27