agriculture sector in india may 2013

7/28/2019 Agriculture Sector in India May 2013

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Agriculture Sector in India

Monthly Update

May 2013



Agriculture – Monthly Update

Top Story

India

to

export

500

tones

mangoes

to

the

US

Mango export from India to the US is going to touch a record high of 500 tones in this current

year due to a strong demand and an expected adequate supply of export quality fruit. India

exported about 209 tones of mango to the US during last year.

However, inadequate irradiation centers for treating insect pest mango seed weevils and

fruit fly from the fruits, is limiting large shipments from the country. Currently, India has only

one irradiation centre in Maharashtra with a processing capacity of 10‐15 tones per day.

The country has exported only 90 tones of mangoes since April first week, mainly from

western India. Alfonso' and Kesar varieties grown in the western parts of the country are

being exported to the US. The fruit is exported to the US via air after the irradiation process.India exports mango at INR 150‐175 per kg at freight on board.

News Update

General Rice bran oil market to grow by 15% in FY2014

Indian rice bran oil market during the current fiscal year is estimated to grow up by 15

percent to INR 46 bn due to its popularity as healthy cooking oil. The oil is produced from thebrown layer of rice and has the properties of lowering cholesterol levels. Currently the

market size is INR 40 bn.

The major manufacturers of the oil included Fortune, Saffola, Sundrop and Dhara among

others. Solvent extractor association (SEA) said that currently India is producing about 0.8

mn tones of rice bran oil. Some food companies are planning to increase their production

capacity to meet the increased market demand. India being the second largest producer of

the rice in the world has huge potential to scale up rice bran oil output.

STC has received the highest bid in wheat export tender

In a tender to export 60,000 tones of wheat from west coast, State trading corporation (STC)of India has received the highest bid at INR17,189 per ton of wheat. In another tender to

export 40,000 tones of wheat from the east coast, STC received bid at INR 17,047per ton of

wheat. Earlier this month STC has issued the tender to export around 1,00,000 tones of

wheat from government warehouses.




Private traders showed apathy in wheat export bid

Private traders have not shown any interest in the bids invited by the food corporation of

India (FCI) for the export of wheat stored in Punjab and Haryana. The reason behind this is

high base rate fixed by the government. This is the fourth time FCI has been inviting bidssince from when wheat export was allowed but failed to get any positive response from

traders.

The base price of the wheat to be exported Under Open General Licence (OGL) from the

Punjab and Haryana has been fixed at INR1,484 per quintal. Traders have appealed to reduce

it to INR 1,200 per quintal. After adding transportation, loading and other expenses into the

base rate, it would be unviable for them to export if the base rate remains same.

Potato price is likely to increase in July

Potato price is estimated to increase by INR 3 from INR 25 to INR 28. Farmers are suggested

to store and sell their produce after June. Presently potato is auctioned at INR 2,000 to INR2,100 per quintal in Mettupalayam. It is assumed that reduction in potato planting area

coupled with drought conditions may result in lesser arrivals and higher prices.

NERAMAC along with FICCI to organize a conference on honey industry in North-east

North Eastern Regional Agricultural Marketing Corporation (NERAMAC) along with the

Federation of Indian Chambers of Commerce is going to organize a national level conference

on bee keeping and honey industry in Guwahati. Leading players and exporters of honey

industry are expected to participate in the conference. Honey industry during the last two

decades, has undergone significant change in terms of demand and supply.

From an economic point of view honey is extremely promising in terms of export potential aswell as domestic consumption. It also helps in creating employment opportunities for the

rural community by taking bee‐keeping as a means of livelihood.

India currently produced around 60,000 metric tones of natural honey and around 26,089

metric tones of honey was exported to the 50 countries in the year 2011‐12.

Farm sector to grow by 3.4% in this fiscal Agriculture and its allied sectors could reach a higher growth rate of 3.4 per cent this fiscal if

the country receives normal monsoon. It was estimated that the agriculture and allied sector

was grown by only 1.8% in fiscal year 2012‐13. Crop production was affected by the drought

situation in Maharashtra, Karnataka, Rajasthan and Gujarat.

Last month weather office has forecasted that India can expect a normal monsoon this year

and it is expected to be 98% of the long period average. Monsoon is essential for some of the

major agriculture crops such as rice, soya bean, cotton and maize because almost 60 % of the

farm land in the country is rain fed.




FCI to open a food storage godown of 5,000 ton capacity in Kerala Food storage capacity of Kerala is going to increase from 0.5 mn ton to 0.6 mn ton in the near

future. FCI has planned to open a new godown in Kerala of 5,000 ton food storage capacity.

Two storage facilities with a capacity of 25,000 ton each would be set up under PPP mode inKochi and Kozhikode.

Since 2009, center had allotted 1.4mn tones of food grains to Kerala. However, it allocated

additional 0.2 mn tones of food grain to Kerala when the price of rice has increased.

News Update

Regulatory Punjab government to raise the subsidy on solar pumps by 40%

Punjab government has planned to give 40% subsidy on solar pumps to incentivize farmers

for using these pumps for irrigation. Minister has sanctioned INR 50 mn for providing this

subsidy to farmers.

Cost of solar pump is about INR 0.25 mn of which 40% will be borne by the state government

and 30% will be borne by the center. The farmer has to give remaining 30%. However,

priority would be given to those farmers who opt for crop diversification program.

Farmers in Madhya Pradesh to get power at only INR 1,200 per year

Recent news state that farmers in the state of Madhya Pradesh will be getting power bypaying INR 1,200 per year for agriculture purpose. Moreover, farmers will get power supply

for 10 hours instead of 8 hours. All the districts in the state would start getting 24x7 power

supply under "Atal Jyoti Programme" by June 15.

To avail this opportunity farmers need to buy a power motor of 1 horsepower capacity. They

can pay the amount in one or two installments to the power board.

Industry Expert Speak

Projected avearge growth rate is 3.4% for agriculture sector – C Rangarajan, Chairman of Prime Minister’s Economic Advisary Panel "We had projected average growth rate of 3.4 per cent for agriculture sector in the 11th Plan.

All indication are that monsoon will be normal, we expect agriculture sector to do well this

year,"




Transactions (March2013 – May2013)

Date

Buyer

Target

Deal

Size

(INR mn) % stake

Deal

Status

Type

of

Transaction

29th

April,

2013

Ruchi Soya

Industries

Kagom Co.

Mitsui & Co.N.A. 40% Pending JV

10th

April,

2013Herba Foods Olam Agro India 773.7 100% Completed M & A

15th

March,

2013

Omega Ag‐seeds Gayatri sea foods N.A. 26% Pending M & A

6th

March.2013

Bennet, Coleman& Company Ltd.

DalmiaContinental

N.A. 12% Pending M & A

6th

March.

2013

Fab India Organic India 150 40% Completed M & A

Annual Financial Results – Revenue (INR mn)

Companies

FY ‘10

FY

‘11

FY

‘12

FY

‘13

Deepak Fertilizers &

Petrochemicals Corporation13,293.00 16,279.00 24,115.70 26,599.6

Southern Petrochemical

Industries Corporation Ltd.11,557.4 13,362.2 27,400.5 N.A

The Fertilizers and Chemicals

Travancore Ltd.21,059.6 24,607.6 28,760.8 N.A

Mangalore Chemicals &

Fertilizers Ltd.20,877.20 25,204.60 37,071.80 27,795.9

Gujarat Narmada Valley

Fertilizers Company Ltd.

26,144.5 28,458.9 38,620.1 42,525.7

Escorts Group 33,663.10 41,049.20 40,024.90 N.A

Jain Irrigation System Ltd 34,348.0 41,745.6 49,384.6 49,168.8

DCM Shriram Consolidated

Ltd.35,704.5 41,345.1 50,067.2 55,169.




Gujarat State Fertilizers &

Chemicals Ltd40,191.9 47,550.5 53,018.3 N.A

National Fertilizers Ltd 51,031.60 57,910.30 73,052.90 67,202.3

Chambal Fertilizers &

Chemicals Ltd41,335.60 56,856.50 75,381.70 81,986.6

United Phosphorus Ltd. 53,387.30 57,606.80 76,547.20 90,102.2

Coromandel International

Limited64,066.00 75,578.20 98,318.40 N.A

Tata Chemicals Ltd. 95,435.5 110,605.8 138,060.6 1,47,186.3

ITC Ltd. 191,358.70 225,747.00 265,517.90 3,16,275.4

Mahindra and Mahindra

(M&M)316,879.70 370,695.70 596,433.20 6,73,539.5

Madras Fertilizers Ltd. 13,028.40 16,312.40 22,148.10 N.A

Rallis India Ltd. 8,786.80 10,919.50 12,782.70 1,4400.9

Bayer CropScience Ltd 16,260.30 21,373.00 22,747.00 26,260

Ballarampur Chini Mills Ltd. N.A 19843.8 23095.5 32,748.4

Bajaj Hindusthan Limited N.A 32261 50634.7 43,440.6

* Change in Financial Year Ending

Annual Financial Results – Income (INR mn)

Companies FY ‘10 FY ‘11 FY ‘12 FY’13

Deepak Fertilizers &Petrochemicals Corporation 1,652.50 1,875.20 2,117.00 1293.1


Industries Corporation Ltd.1,021.80 ‐6,259.40 ‐21.80 N.A


Travancore Ltd.‐1,038.40 ‐493.30 198.00 N.A


Fertilizers Ltd.535.70 775.4 691 665.7





Fertilizers Company Ltd.1,238.4 2,665.3 2,838.4 2731.1

Escorts Group 1,320.00 1,263.90 738.10 N.A

Jain Irrigation System Ltd 2,475.90 2,807.10 2,235.00 30.8


Ltd.842.50 ‐142.70 119.20 2028.9


Chemicals Ltd1,652.50 1,875.20 2,117.00 2731.1

Rashtriya Chemicals &

Fertilizers Ltd.2,343.20 2,447.10 2,488.30 2726.7

National Fertilizers Ltd 1,715.10 1,385.00 1,267.30 ‐1707


Chemicals Ltd2,172.30 2,405.90 1,583.10 2385.2

United Phosphorus Ltd. 5,576.20 5,555.50 6,980.70 7746


Limited6,936.60 6,387.90 4,872.10 N.A

Tata Chemicals Ltd. 6,534.70 8,375.90 7,269.40 4004

ITC Ltd. 41,681.80 50,179.30 62,581.40 76080.7

Mahindra and Mahindra(M&M)

30,797.30 31,266.60 37,124.00 40992.

Madras Fertilizers Ltd. 1,698.60 1,119.90 ‐101.6 N.A

Rallis India Ltd. 1,260.40 991.8 1,176.40 1190.2

Bayer CropScience Ltd 1,316.00 1,390.00 10,683.00 11617

Ballarampur Chini Mills Ltd. N.A 1084.6 4.3 N.A

Bajaj Hindusthan Limited 440.3 214.5 ‐3201 N.A

* Change in Financial Year Ending




Quarterly Financial Results – Revenue (INR mn)

Companies

Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013


Petrochemicals CorporationN.A. N.A. N.A. N.A


Industries Corporation Ltd.N.A. N.A. N.A. N.A


Travancore Ltd.5,210.60 7,124.10 6,767.20 N.A


Fertilizers Ltd.5,991.90 8,390.60 6,929.70 6498


Fertilizers Company Ltd.

8,709.30 11,657.70 11,192.00 10966.6

Escorts Group N.A. N.A. N.A. N.A

Jain Irrigation System Ltd N.A. N.A. N.A. N.A


Ltd.13,390.80 13,370.60 14172.7


Chemicals Ltd8709.3 11657.7 11192 10966.6


Fertilizers Ltd.N.A. N.A. N.A. N.A

National Fertilizers Ltd 18,066.60 19,465.70 18,183.80 11486.2


Chemicals LtdN.A. N.A. N.A. N.A

United Phosphorus Ltd. 21,803.40 18,020.00 22,553.80 N.A


Limited22,516.80 26,606.00 24,009.30 N.A

Tata Chemicals Ltd. 30,208.90 41,655.10 41,704.60 33617.7

ITC Ltd. N.A. N.A. N.A. N.A


(M&M)176,708.10 92,525.80 102,425.70 389802.9

Madras Fertilizers Ltd. 5,135.30 6,683.60 7,644.70 N.A

Rallis India Ltd. 3,383.10 4,806.20 3,398.10 2786.5




Bayer CropScience Ltd 8,994.40 8,265.60 5,591.00 3674

Ballarampur Chini Mills Ltd. N.A N.A N.A N.A

Bajaj Hindusthan Limited N.A N.A N.A N.A

* Change in quarter

Quarterly Financial Results – Income (INR mn)

Companies Apr-Jun

2012

Jul-Sep

2012

Oct -Dec

2012

Jan-Mar

2013


Petrochemicals CorporationN.A. N.A. N.A. N.A


Industries Corporation Ltd.N.A. N.A. N.A. N.A


Travancore Ltd.‐1,041.50 ‐262.60 ‐798.1 N.A


Fertilizers Ltd.‐125.00 564.2 58 168.4


Fertilizers Company Ltd.327.4 723.8 1,007.30 672.6

Escorts Group N.A. N.A. N.A. N.A

Jain Irrigation System Ltd N.A. N.A. N.A. N.A


Fertilizers Ltd.N.A. N.A. N.A. N.A

National Fertilizers Ltd ‐520.1 7.4 ‐124.2 ‐1070.4


Chemicals LtdN.A. N.A. N.A. N.A

United Phosphorus Ltd. 2,029.10 1,198.00 1,734.90 N.A


Limited1,759.70 2,368.80 683.9 N.A

Tata Chemicals Ltd. 1,075.90 2,567.70 2,240.70 1880.3




ITC Ltd. N.A. N.A. N.A. N.A


(M&M)

10,263.60 9,780.90 9,149.50 14276.9

Madras Fertilizers Ltd. ‐189.7 428.7 272.1 N.A

Rallis India Ltd. 241.7 615.6 220.3 112.6

Bayer CropScience Ltd 887.4 978.5 9,034.00 718

Ballarampur Chini Mills Ltd. N.A N.A N.A N.A

Bajaj Hindusthan Limited N.A N.A N.A N.A

* Change in quarter

Events Calendar

International Agriculture & Horti Expo

Date: 26th ‐28th July 2013

Venue: Pragati Bhawan

City: New Delhi

State: DelhiContact No: 91‐11‐46867500 Organizer: Nns Events & Exhibition P Ltd.

Website: http://www.biztradeshows.com/trade‐

events/international‐agriculture‐horti‐expo.html




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agriculture sector in india may 2013

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