Nice to know
India:
Agriculture, with its allied sectors, is unquestionably the largest livelihood provider in India, more so in
the vast rural areas. The Indian agriculture sector accounts for 18 per cent of India's gross domestic
product (GDP) and employs just a little less than 50 per cent of the country's workforce.
This sector has made considerable progress in the last few decades with its large resources of land,
water and sunshine. On the other side, slow agricultural growth is a concern for policymakers as some
two-thirds of India’s people depend on rural employment for a living. Current agricultural practices are
neither economically nor environmentally sustainable and India's yields for many agricultural
commodities are low. Poorly maintained irrigation systems and almost universal lack of good
extension services are among the factors responsible. Farmers' access to markets is hampered by
poor roads, basic market infrastructure, and excessive regulation."
Background information:
•
India is the 3rd largest economy in the world in purchasing power parity (PPP) after China and
US.
•
India will surpass China to become world's most populous nation around 2028, population
crossing 1.45 billion marks.
•
India wants to double their food production by 2020 in order to avoid crisis in the agrarian
sector.
•
13 percent of total population (approx. 1, 25 billion) is middle class and their food
consumption habit is changing rapidly due to increase in their disposable income which
demand quality and variety of food.
•
Natural Resources: Shrinking land base, Dwindling water resources, extreme weather events.
•
Farm Operations: Shortage of farm labor, youth participation in agriculture declining,
inadequate mechanization.
•
Inadequate access to finance due to lack of skills and knowledge among Indian farmers.
•
Poor infrastructure, i.e. poor rural roads, inadequate irrigation system, un-organized retail,
lack of cold storage, cause between 30% and 40% losses and wastage of farmer’s produce.
•
Food distribution system is highly inefficient. Movement of agricultural produce within India is
heavily regulated, with inter-state and even inter-district are restricted.
•
65 % of population is youth in India who looks for variety and quality in food where Dutch
expertise can help in adding value in agriculture and food processing sector by improving
entire production chain.
•
One of the priorities of central government is to enhance skills and knowledge of 1.25 billion
people to attain National dream “Made in India”.
•
India suffers around 40% as a Post -harvest loss of their total agriculture production.
Fact and figures:
•
Ranks 5th within the world's largest agricultural producers.
•
Globally 2nd largest producer of fruits and vegetables (largest producer of mango, banana,
coconut, cashew, papaya and pomegranate; and the largest producer and exporter of spices.)
•
Ranks first in milk production, accounting 17 percent of world production.
•
2nd in world fish production, contributing 5.4 per cent of global production.
•
5th in world meat production and accounts for 3% of total world meat production.
•
Globally 3rd in egg and 5th largest producer of poultry meat.
•
60 percent of total population derives their subsistence from agriculture.
•
Around 83 % of the farmers are having small and marginal holdings i.e. around average 2.3
hectare per farmer. In dairy: 2 or 3 cows average.
Export figures:
•
Total exports of Indian agricultural and processed food products stood at $45 billion in 201314 from $25 billion in 2011-12.
•
Agriculture accounts for 14 per cent of gross domestic product (GDP) and about 11 per cent of
total exports from India.
Sector report
Potato: Fact and figures

India stands 2nd on world potato production map with 45 million tons (2012), as a broad analysis
it needs 4 million tons of seed to produce abovementioned volumes.

India produces 28 percent of the world’s potatoes, making it the fourth most important crop in
the Indian economy.

At this moment less than 4 % of seed is produced by professional players in organized sector,
rest is unorganized sector.

Certified seed is less than 1%. This speaks for great and urgent need of seed potato certification
in the country.

Major potato producing state: Uttar Pradesh, Bihar, West Bengal, Punjab, Karnataka, Assam and
Madhya Pradesh.

Total Production in India is 45344 thousand tonnes.

At present CPRI produces 2550 tonnes of basic seed annually and supplies about 2000 tonnes to
central and state government agencies.

The indigenously produced seed is available to the farmers @RS 5000-7000 i.e. US $ 139 to 194
per tonne as against US $ 1120-1200 per tonne in neighbouring countries.

Potato is mainly a Rabi season crop, sown in the month of October and harvested in the month
of March. However in hilly regions of Himachal Pradesh, Uttarakhand and Jammu and Kashmir,
potato is grown as a Kharif crop where it is sown in the month of July and harvested in the
month of October.
Usage of Potato in India: As in most other countries, potato in India finds an extensive usage in the
following areas:
a. Table Purpose Usage (As vegetables): Potato is one of the most widely consumed vegetables in
the world, used either alone or as a combination with other vegetables.
b. Usage as Seed: Medium sized tubers produced in Punjab and Northern and Eastern hills are
used as seed potatoes.
c. Usage in Processed Food: Dehydrated potato products like chips, potato powder, and potato
Biscuits, granules etc. and frozen foods like potato patties, puffs, wedges, pancakes etc. utilize
potato in one way or other.
Areas of Production:
Major potato producing states in India are: Uttar Pradesh, Punjab, Haryana, West Bengal, Madhya
Pradesh, Bihar, Andhra Pradesh, Tamil Nadu, Gujarat, Assam, Karnataka, Uttaranchal
Poultry: Fact and figures
1. Poultry is one of the fastest growing segments of the agricultural sector in India today. The
production of eggs and broilers has been rising at a rate of 8 to 10 percent per annum.
2. India is now the world's fifth largest egg producer and the eighteenth largest producer of
broilers.
3. The Potential in the sector is due to a combination of factors - growth in per capita income, a
growing urban population and falling real poultry prices.
4. Poultry meat is the fastest growing component of global meat demand, and India, the world's
second largest developing country, is experiencing rapid growth in its poultry sector.
5. Indian poultry industry is in growth mode. It has been growing at around 8-10% annually during
the last decade. The trend is likely to continue in the present decade also (2011-2020) as
demand for poultry meat and eggs have been growing constantly.
6. Per capita consumption of poultry meat in India is only 2.4 kg per annum.
7. India stands 5th largest in poultry meat production with 2.9 million tonnes. United States of
America and China hold top positions with production of 15 and 10 million tonnes of poultry
meat respectively. So, potential exists for faster growth in broiler production.
8. Currently egg production is around 66.45 billion in 2011-12 which is about 5% over the previous
year production of about 63.02 billion eggs.
9. Per capita consumption of Eggs in India is only 49 eggs per annum.
10. With 60 billion eggs production (2.86 million tonnes) India is in the third place in the world.
China and USA are in top position with 22 and 5 million tonnes egg production respectively.
Growth in egg production will continue in the present decade (2011-2020)
11. The government has allowed 100% FDI (Foreign Direct Investment) in food processing and many
multinational companies are taking advantage of this to process broiler meat in India (including
further processing) and export the premium cuts to the markets abroad.
12. At present international trade in poultry products is minimal (US$110 Million). With the Free
Trade Agreement, import of poultry products into India will increase tremendously. It shall
definitely affect the Indian poultry market and poultry producers will have to struggle a lot to
keep prices profitable.
13. The current per capita availability of eggs is around 55 eggs per year. Exports of poultry products
are currently at around 457.82 crore in 2011-12 as per the report of Agricultural and Processed
Food Products Export Development Authority (APEDA).
14. The country has exported 5, 77,864.24 MT of Poultry products to the world for the worth of INR
494.94 crores during the year 2012-13.
15. Major exporting countries in 2012-13 are Afghanistan, Saudi Arabia, Indonesia, Germany and
Netherlands.
Areas of Production:
Tamil Nadu counts for maximum egg production. In Telangana, Hyderabad accountable for highest
poultry and hatcheries. Besides that Andhra Pradesh, Vishakhapatnam, Chittoor, Karnataka, Tamil
Nadu, Maharashtra, Gujarat, Madhya Pradesh, Orissa and North Eastern States are the major egg
contributors.
Dairy: Fact and figures
1. India's Export of Dairy products was 1, 59,228.52 MT to the world for the worth of INR
3,318.53 crores during the year 2013-14.
2. The per capita availability of the milk has reached a level of 281 grams per day during year
2010-11, but it is still lower than the world average of 284 grams per day.
3. India has a large livestock population base constituting 278 million livestock including 180.5
million cattle, 82.8 million buffaloes, 4 million sheep and 9.2 million goats. The livestock
population is projected to increase to 322 million by the year 2015.
4. Milk processing in India is around 35%, of which the organized dairy industry account for
13% of the milk produced, while the rest of the milk is either consumed at farm level, or sold
as fresh, non-pasteurized milk through unorganized channels.
5. Dairy Cooperatives account for the major share of processed liquid milk marketed in the
India. Milk is processed and marketed by 170 Milk Producers’ Cooperative Unions, which
federate into 15 State Cooperative Milk Marketing Federations. Over the years, several
brands have been created by cooperatives like Amul (GCMMF), Vijaya (AP), Verka (Punjab),
Saras (Rajasthan). Nandini (Karnataka), Milma (Kerala) and Gokul (Kolhapur).
6. Exports of dairy products have been growing at the rate of 25% per annum in the terms of
quantity terms and 28% in terms of value since 2001. Significant investment opportunities
exist for the manufacturing of value-added milk products like milk powder, packaged milk,
butter, ghee, cheese and ready-to-drink milk products.
Areas of Production:
Uttar Pradesh, Punjab, Haryana, Rajasthan, Gujarat, Maharashtra, Andhra Pradesh, Karnataka and
Tamil Nadu are the milk surplus states in India. The manufacturing of milk products is obviously high
in these milk surplus States.
Major Players
The dairy industry is dominated by the co-operative sector. About 60% of the installed processing
capacity is in the co-operative sector. The National Dairy Development Board (NDDB) is a major
player in the market with its major brand Amul.
Leading brands like Amul, Nestle, Mother Dairy and Britannia are in the race to tap the growing
market. SmithKline Beecham Consumer Healthcare, Nestlé India and Heinz India are amongst the
large Multi-National Companies that dominate the high-value milk products market. Other players
include Indiana Dairy Specialties, Jagatjit Industries Ltd and various other state cooperatives.
The milk and dairy products segment is set for up gradation of cold-storage chains for
expansion. Mother Dairy, a wholly owned subsidiary of National Dairy Development Board plans to
make strong presence in the market of milk and milk products under the Mother Dairy brand through
retail outlets across the country in addition to its own 300 outlets with provision of cold storage and
cold chains.
Piggery: Facts and figures
1. Pig sector receives only about 2% of the total public expenditure on agriculture and allied
sectors and about 4-5% of the total institutional credit flowing to agriculture and allied
sectors.
2. Only less than 1% of the pig heads are provided insurance cover. Piggery extension remains
grossly neglected.
3. Only about 5% of the farm households in India do access information on piggery.
4. Organized slaughtering facilities are too inadequate and pigs are being slaughtered in open.
5. Though there are about 88 Pig Breeding farms in the North-Eastern region, they are not in a
position to supply the requisite number to feeder piglets to the farmers.
6. Piggery plays an important in food habits and culture of North-Eastern Region including
Sikkim and Andaman & Nicobar Islands. In these states Piggery is one of the highly
profitable animal husbandry activities.
7. Lack of access to organized pig and pork markets and meager profits distract farmers from
investing into improved technologies and quality inputs. Informal market intermediaries
often exploit the producers.
8. Although, major concentration of pigs is in NE and eastern states, it is not able to meet the
pork requirement of NE states. Predominantly non-descript pig populations there have poor
productivity. High cost of concentrate feed, non-availability of swine fever vaccine and
quality germplasm, lack of organized slaughter and market facilities have been the major
constraints.
9. A scheme on Piggery Development was started in XI plan with allocation of INR 150 crores.
However, no expenditure has been made.
Areas of Production:
Piggery is heavily concentrated to North- Eastern part of India and to some other states like Kerala and
Tamil Nadu.
Private Expenditure for Pig Breeding
No private investment like poultry breeding has been done in piggery and if quality genetic material
is imported, the other investors would come forward for pig breeding activities.
Number of Pig Breeding Farms in India
There are about 200 Government Pig Breeding Farms at present; out of 88 pig breeding farms are
present in North Eastern region.
Constraints faced by Government Pig Breeding Farms

In-breeding due to non-regular import of exotic breeds.

Financial constraints

Non-availability of nutritious feeds

Low productive performance
Constraints faced by Private Pig Entrepreneurs

Non-availability of quality piglets

Proper-training in technical know-how

Problems in getting finance from banks and other financial institutions

Problems in Marketing of pigs and processing of pork
Problems faced by pork consumers

Non-availability of hygienic pork

Chances of transmission of zoonotic disease

Price fluctuation in the market- demand/supply
Cold chain
The Indian perishables market is generally characterized by fragmentation, low levels of processing,
high potential for value addition, significant amounts of quality & quantity losses and high price
volatility. It is interesting to know that India loses 30% to 40% of their total agriculture produce due
to insufficient supply chain practices prevails in the food chain.
The cold chain industry in India is still at a nascent stage and despite large production of perishable
produce the cold chain potential still remain untapped due to high share of single commodity cold
storage, high initial investment (for refrigerator units and land), lack of enabling infrastructure like
power & roads, lack of awareness for handling perishable produce and lapse of service either by the
storage provider or the transporter leading to poor quality produce.
However, increasing urbanization and growth in organized retail, food servicing and food processing
sector are boosting the growth of cold chain sector. The trend is shifting towards establishing
multipurpose cold storage and providing end to end services to control parameters throughout the
value chain. There are a couple of changes in the industry eco- system as well that shall aid these
efforts, including urbanization, changing consumer preferences, changing pattern of the wholesale/
retail industry and the renewed regulatory thrust by the Government on food safety, hygiene, better
nutrition and convenience.
In order to salvage the sector out of the above challenges we as a Netherlands is very keen to work
with India as to leverage on the intrinsic strengths of the Indian perishable sector and the offers
tremendous potential to catapult India into the big league in food processing.
In this endeavor Yes Bank and Agriculture Department of Embassy of the Kingdom of the
Netherlands, New Delhi, have recently completed a joint study on the cold chain sector in India
which compiles available and recent literature on developments with primary focus on Maharashtra,
Andhra Pradesh, Gujarat & Delhi. Please find below the cold chain report pertaining to the recent
joint study done by Dutch embassy in New Delhi, India. To obtain a copy of the report please contact
the agriculture department of the embassy at nde-lnv@minbuza.nl
Important Local Associations
1. The Confederation of Indian Industry (CII)
http://www.cii.in/
: CII works to create
and sustain an environment conducive to the growth of industry in India, partnering industry
and government alike through advisory and consultative processes.
2. Indian Chambers of Commerce (ICC) http://www.indianchamber.org/ : The Indian
Chamber of Commerce, or ICC as it is popularly known, is the body of business and industry
in Eastern and North-Eastern India. The membership of the Chamber comprises several of
the largest corporate groups in the country, with business operations all over the country
and abroad.
3. The
Associated
Chambers
of
Commerce
&
Industry
of
India
(ASSOCHAM)
http://www.assocham.org/: ASSOCHAM is a not for profit organization, facilitating reach of
India to all businesses around the globe, for wanting to do business with India.
4. Federation
of
Indian
Chambers
of
Commerce
and
Industry
(FICCI)
http://www.ficci.com : FICCI is a non-government, not-for-profit organisation, it is the voice
of India’s business and industry. FICCI draws its membership from the corporate sector, both
private and public, including SMEs and MNCs.
Sri Lanka
Sri Lanka is an island country in the Indian ocean having a documented history that spans over 3000
years. The country has an area of 65,610 km2 with 25 administrative districts. Its geographic
location and deep harbours made it of great strategic importance from the time of the ancient Silk
Road.

The country has had a long history of international engagement, as a founding member of
SAARC, a member of the United Nations, the Commonwealth of Nations, the G77 and the
Non-Aligned Movement. It is also the only country in South Asia that is currently rated 'high'
on the Human Development Index.

The country hosts a population of around 20 million with an annual growth rate of 0.73%.
With a literacy rate of 92.5%, Sri Lanka has one of the most literate populations amongst
developing nations. The per capita income has substantially lifted during previous decade
enabling the country to be graduated to middle income status. (Source: CBSL, Wikipedia)
Agriculture

The agriculture sector is the bedrock of the economy with 18% contribution to the Gross
Domestic Product (GDP). More than 70% of rural population engaged in agriculture, which
create 30% of country’s employment.

Rice is the largest single crop grown in Sri Lanka and the rice processing industry is the
largest agro-based industry.

Various other crops such as yams, pulses, grams, vegetables and fruits are produced mainly
for domestic consumption.

Potato farming and sugarcane industry are also significant in agricultural sector.
Dairy

Local dairy industry supplies only 20 – 30% of domestic requirement. Annually, Sri Lanka
imports 70,000 – 75,000 Mt. of milk powder from Australia and New Zealand, spending over
USD 300 million.

To be self-sufficient in milk a further 482 million liters has to be produced annually.

Sri Lanka, having ability to source land with fertile soil and clean water, is a good destination
to establish dairy farms. Lots of untapped resources are available in the eastern and
northern provinces of the country.
Fishery

Fisheries sector in Sri Lanka account for 1.8 percent of GDP with a total fish production of
512,840 metric tons in 2013. The sector accounted for 2.5 percent of total export earnings in
the country.

Around 265000 active fishermen have engaged in both marine and inland fisheries with
about 30,561 of motorized and 21,740 of non-motorized boats.

There is a need for the introduction of the large sized and well equipped boats which are
capable of exploiting deep sea resources.
Horticulture

Sri Lanka is a tropical country where fruits and vegetables can grow year round due two
monsoons annually, varied topography and good soil. There are 22 well defined agro
ecological regions with distinct rainfall patterns, temperature, soil type and elevation.

The country has an untapped potential as an exporter of high value horticulture products for
markets in Maldives and Gulf region due to its' proximity and regular shipping connections.

Booming tourism industry and the expanding foreign markets demands more investments in
the horticultural sector. The sector has a great potential as an exporter of high value
horticultural products to nearby markets.

Inappropriate policies and supply chain inefficiencies make it difficult to practice horticulture
on a larger scale.

Virtually untapped resources are available in post conflict zones with great potential for high
yields. Public-private partnerships implemented together with out-grower farming systems
have been proven to be a good solution.

The cultivation of potato in Sri Lanka has a long history that goes to the period of Dutch.
Potato is extensively cultivated by farmers in the district of Nuwara Eliya and Badulla due to
its high net return. During the cropping season of year 2011/12, Sri Lanka cultivated 4847
hectares with a yield of 75,352 MT.

Sri Lanka imports around 130000 MT of potato annually to meet the domestic demand.
Imports mainly occurred during the months of December, January, June and July as the
domestic production remained low during these months.

Previous government had a plan to stop the importation potato seeds by year 2016 as there
were programs to become self-sufficient in seed potatoes.

Importation of potato was banned in September last year with the objective of protecting
domestic farmers during the harvesting season.
Latest political changes

Developing the agricultural sector has taken seriously by the current government which
came into power on 9th January 2015.

The government has pledged a guaranteed price scheme for agro products like paddy and
potato and further increase of present guaranteed price of Rs. 60/- per litre of milk by Rs.
10/-.

Programs to introduce new technologies for agro processing, value addition, storage and
transport and gradual elimination of use of chemical fertilizers and agro chemicals are also
promised by the newly elected government.