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AgricultureSectorinIndia

MonthlyUpdate July2013

TopStory
Bhoochetanaagrischemestocover21districtsinAndhra Bhoochetana scheme, having an aim to boost the agriculture productivity with technological support from ICRISAT, targets to cover 0.3 mn hectares rainfed area of 21 districtsofAndhraPradeshduringtheongoingrainyseason.Theschemewaslaunchedby the Andhra Pradesh state government in collaboration with ICRISAT. The Bhoochetana project started with 70,000 hectares land covering seven districts of Andhra Pradesh. The projecthasseenayieldincreaseof2058percentofvariouscrops.Theprojecthasbenefited over0.45mnfarmerssofar,whohaveseenriseinfarmincomesby25percent. It has been decided by the ICRISAT that 14 districts will have 500 hectares block and 7 districtswillhave100hectaresblockfordemonstrationpurpose. There have beenenquiresto start Bhoochetana project inUttarPradesh and Tamil Nadu and some countries in Asia and SubSaharan Africa. The project basically focuses on crops such as maize, groundnut, sorghum, sunflower, chickpea, paddy, soyabean, sugarcane and cotton in Andhra Pradesh. It has been noticed that farmers income has increased by INR 10,00012,000perhectareforthecropsuchascotton.

NewsUpdate General
GovernmentofAssamplanstopromoterooftopvegetablegardening TheAssamgovernmenthastakenaninitiativetopromoterooftopvegetablegardeningfor urbanresidentswithanaimtoincreaseproductionoffreshvegetables.Atthefirststageof the initiatives government will offer some packages to the selected urban citizens of Guwahati & Jorhat, later extend it to other urban areas of the state. The Directorate of Horticulture and Food Processing has already developed different structures for rooftop vegetablegardeningandwouldconductworkshopstoencouragepeople. PunjabtogetINR750mnfromCentralgovernment The Central government has sanctioned INR 750 mn for the state of Punjab to boost the states horticulture under the National Horticulture Mission. The fund would be used for settinguporchards,floricultureandbeekeepingactivities,installationofcommunitywater tanks, greenhouses, cold stores and pack houses. Two centers of excellence will be developedbythePunjabMandiBoardinsyncwiththeIndoIsraelagreementatKhanaurain HoshiarpurandKartarpurinJalandhardistrict.

AgricultureMonthlyUpdate

Moreover, the government has also planned to provide plastic crates to the cultivators to increase the shelf life of fruits and vegetables under the Rashtriya Krishi Vikas Yojana (RKVY)atacostofINR15mn. Presently,Punjab has about 2,060 hectaresland under the commercial floriculture, 0.2 mn hectares land under vegetable cultivation and about 71,000 hectares of land under fruit cultivation. BARCislikelytosetup3processingplants BhabhaAtomicResearchCenterisgoingtosetupthreemultiproductradiationprocessing technology demonstration plants for high yielding varieties of basmati, potato, and other alternate crops in Punjab. BARC would provide technology and engineering support for setting up of these plants which would also process onions, wheat, suji, maida, spices and othercommodities. BARCwillalsosetupanIsotopeLaboratorytocarrythegroundwaterexaminationatMohali. Itwillbeabletodetecttheuranium,arsenic,phosphorouspresenceingroundwater.BARC will also assist the state in long term field testing and demonstration of membranebased water purification technologies for domestic water purification, cycle mounted water purificationandcommunitysizewaterpurification.BhabhaAtomicResearchCenteragreed to install this technology on a tube well in Ludhiana city and in one of the governments schoolsinSriMuktsarSahibdistrict. Agricultureministeragainsttheonionexportban AgricultureministerMr.SharadPawarisnotinfavorofbanononionexport.Although,onion price is at an increasing trend, Mr Power has opined that it is a temporary phenomenon occurredduetoheavyrainfallinmajoronionproducingstatessuchasMaharashtra. IndiahasincreaseditsexportstoINR2.33trduring201213fiscalfromINR1.86trinthe previous year. Both consumer affairs and ministry of commerce are willing to ban onion exportforshortruntocurbthedomesticpriceofonions. RetailpriceofonionhasaugmentedtoINR3540perkgacrossIndia,whilethewholesale priceofonionhasalsoincreasedtoINR25perkgatLasalgoaninMaharashtra. Governmentislikelytoreleasefoodgrainstocktocurbinflation The Indian government has planned to release food grains from their stock to control the soaring food prices. The government is also contemplating to launch a system that will regulatetheexportandimportdutyofonionandpotatowhosepricesarefluctuating.Central governmentisalsodiscussingwiththestategovernmentsonhowtoreducethewastageof horticultureproduceastheyrotduringthepeakseason. ThegovernmenthaspromulgatedanordinancetoimplementtheFoodSecurityBillearlier thisJuly.Ifthebillgetspassedthenthegovernmentwillgive25kgsfoodgrains,including AgricultureMonthlyUpdate

rice,wheatandmillet,atINR3,INR2,andINR1akgrespectively,amonthdependingonthe need,whichwillbealegalrightforpeoplebelowthepovertyline. NabardtogiveINR50bntotheprivategrainplayers NowprivateplayerscanavailsoftloanuptoINR50bnforwarehousingfromNabardasfood securitybilldemandstoincreasethegrainstoragecapacity.Itwassaidinthe12thfinancial plan that there is a requirement of 35 mn tones of additional storage capacity in all over India.OnanaverageaninvestmentofINR4,000isrequiredforcreating1tonstoragespace. Nabard will finance construction of warehouses, godowns, silos and cold storage units. Initially, the scheme was limited to the states or staterun entities. Food security bill, implementedbythegovernment,ensuresthatthenationstwothirdspopulationwillget5kg foodgrainpermonthatasubsidizedrateofINR13perkg. ICARwasaskedtogiveclarityonsafetyconcernsofGMcrops ThePresidentofIndia,Mr.PranabMukherjee,saidonthe85thICARfoundationdaythatthe genetically modified crops are definitely a great invention by the Indian Council for Agriculture Research, but the agro research body needs to provide a clarity on safety concernsofthesecrops. ThegovernmenthasallowedcommercialcultivationofBtcottonwhilesuspensionhasbeen putonBtbrinjal.PrivatecompaniesareallowedtoconductafieldtrialofGMcropssuchas cotton, corn and maize in Punjab, Haryana, Andhra Pradesh and Gujarat respectively. The PresidentalsosaidthatIndiaisonthewayofbecomingafoodsurpluscountryfromthefood deficientcountrybutwarnedthatclimatechangeposesamajorchallengetoagricultureand thecountrymustchalkoutaclimateresilientdevelopmentstrategy. IndiabasedseedcompanyMahycoboughtUSbasedArcadiastechnology Maharashtrabased seed company Mahyco Seeds has bought technology from USbased agricultural technology company Arcadia Biosciences with an aim to develop Nitrogen Use Efficient rice in India. An agreement was signed by both the companies in 2008. NUE technologysignificantlyincreasesplantgrowthandyieldinmultiplericelinesdevelopedby thecompany.ArcadiapresidentandCEO,EricReysaidthatNUEtechnologyisanimportant steptowardsimprovingfoodsecurity. Mahyco Seed in collaboration with Arcadia Biosciences Inc invented Nitrogen Use Efficientrice Mahyco Seed and Arcadia Biosciences Inc jointly have developed Nitrogen Use Efficient (NUE) rice. Arcadias NUE technology claims that it can reduce the need for nitrogen fertilizers.ArcadiaBiosciencesisanagriculturaltechnologycompany.Thecompanyisbased atDavisinCalifornia.NUEtechnologycanincreasetheplantgrowthandyield. Rice is the world's secondlargest crop, grown on 160 mn hectares annually. India has the world's largest rice growing area, with more than 44 mn hectares grown annually. Apart AgricultureMonthlyUpdate

from NUE rice, the firms are also working on a number of other technologies and crops to augmentfarmproductivity. OpenseacagefarmingtogetpromotedbySiddis AcooperativemodelforopenseacagefarmingisbeingpromotedbySiddisofAfricanorigin inVeravalofGujarat.TheprojectisallsettogetatechnologicalpushwiththeCentralMarine Fisheries Research Institute (CMFRI) lending its resources for the seed production of two typesofmullet.Theinitiativehasbeentakentomovefromtraditionalfishingtoanglersjust to reduce the pressure on fishing. About 20 siddi families have formed a society called BharatAdinJyotMatsyaUdyogMandalitolaunchopenseacagelobsterfarmingwiththe supportfromcentralagencies. The initiative has been taken to boost the financial status of the tribe members. Fish are raised commercially in tanks or enclosures in fish farming. CMFRI is trying to introduce standardized technology for seed production of two marine fish Cobia and Pompano respectively.Cobia,ahighendfish,ismainlyexportedtotheMiddleEast,USandEuropean marketintheformoffillets.

NewsUpdate Regulatory
ChhattisgarhfarmerstogetINR16bncroploans Chhattisgarh is blessed with wide spread monsoon across the state and it has boosted the statesfarmingactivities.Moreover,thefarmersofthestategotcroploansofINR16bnin kharifrabiseasonfromthegovernment. ThegovernmenthasplannedtoprovidecroploansworthINR30bntothefarmersthrough primary cooperative societies at a rate of 1 per cent interest per annum this year. Interest ratewasloweredtoboostthelendingactivitybythefarmers.Inviewoftheperformanceand creditrequirementoftheprimaryagriculturecooperativesocieties,thisyeartheamountof thefarmcredithasbeenraised. IndustryExpertSpeak Government to release food grain stock K V Thomas, Union Minister of State for ConsumerAffairsandFoodandPublicDistribution "Inthelastfewyearstheminimumsupportpricehasdoubled.Theconsumptionpatternhas alsochangedalongwithriseinpriceofpetroleumandpetroleumproducts.Sotobringdown thepriceoffood,theEGoMwillanalysethesituationandtakeactionthatwillhelpeasethe AgricultureMonthlyUpdate

situation.Wemayevenreleasefoodgrainsfromthegovernmentstockstocontrolthefood inflation."

Transactions(May2013July2013)

Date 22ndJuly, 2013 11thJuly, 2013 8thJuly, 2013 4thJuly, 2013 5thJune, 2013

Buyer QuadriaIndia ZuariFertilizers GailIndiaLtd Deepak Fertilizers& Petrochemicals RuchiSoya Industries

Target CapricornFood ProductsIndia Ltd. Mangalore Chemicals& FertilizersLtd. Rashtriya Chemicals& FertilizersLtd. Mangalore Chemicalsand Fertilizers JOilsMillsInc. ToyotaTsusho Corporation

DealSize (INRmn) 600 N.A N.A 1790 N.A

%stake N.A 13.5% 510% 24.5% 51%

DealStatus Completed Completed Expected Completed Expected

Typeof Transaction PE M&A M&A M&A JV

AnnualFinancialResultsRevenue(INRmn)

Companies DeepakFertilizers& PetrochemicalsCorporation SouthernPetrochemical IndustriesCorporationLtd. TheFertilizersandChemicals TravancoreLtd. MangaloreChemicals& FertilizersLtd. GujaratNarmadaValley FertilizersCompanyLtd. EscortsGroup FY10 13,293.00 11,557.4 21,059.6 20,877.20 26,144.5 33,663.10 FY11 16,279.00 13,362.2 24,607.6 25,204.60 28,458.9 41,049.20 FY12 24,115.70 27,400.5 28,760.8 37,071.80 38,620.1 40,024.90 FY13 26,599.6 23565.6 26,948.9 27,795.9 42,525.7 N.A

AgricultureMonthlyUpdate

JainIrrigationSystemLtd DCMShriramConsolidated Ltd. GujaratStateFertilizers& ChemicalsLtd NationalFertilizersLtd ChambalFertilizers& ChemicalsLtd UnitedPhosphorusLtd. CoromandelInternational Limited TataChemicalsLtd. ITCLtd. MahindraandMahindra (M&M) MadrasFertilizersLtd. RallisIndiaLtd. BayerCropScienceLtd BallarampurChiniMillsLtd. BajajHindusthanLimited *ChangeinFinancialYearEnding

34,348.0 35,704.5 40,191.9 51,031.60 41,335.60 53,387.30 64,066.00 95,435.5 191,358.70 316,879.70 13,028.40 8,786.80 16,260.30 N.A N.A

41,745.6 41,345.1 47,550.5 57,910.30 56,856.50 57,606.80 75,578.20 110,605.8 225,747.00 370,695.70 16,312.40 10,919.50 21,373.00 19843.8 32261

49,384.6 50,067.2 53,018.3 73,052.90 75,381.70 76,547.20 98,318.40 138,060.6 265,517.90 596,433.20 22,148.10 12,782.70 22,747.00 23095.5 50634.7

49,168.8 55,169. 62,533 67,202.3 81,986.6 90,102.2 90,302.5 1,47,186.3 3,16,275.4 6,73,539.5 23,462.9 1,4400.9 26,260 32,748.4 43,440.6

AnnualFinancialResultsIncome(INRmn)
Companies DeepakFertilizers& PetrochemicalsCorporation SouthernPetrochemical IndustriesCorporationLtd. FY10 1,652.50 1,021.80 FY11 1,875.20 6,259.40 FY12 2,117.00 21.80 FY13 1293.1 10,997.5

AgricultureMonthlyUpdate

TheFertilizersandChemicals TravancoreLtd. MangaloreChemicals& FertilizersLtd. GujaratNarmadaValley FertilizersCompanyLtd. EscortsGroup JainIrrigationSystemLtd DCMShriramConsolidated Ltd. GujaratStateFertilizers& ChemicalsLtd RashtriyaChemicals& FertilizersLtd. NationalFertilizersLtd ChambalFertilizers& ChemicalsLtd UnitedPhosphorusLtd. CoromandelInternational Limited TataChemicalsLtd. ITCLtd. MahindraandMahindra (M&M) MadrasFertilizersLtd. RallisIndiaLtd. BayerCropScienceLtd BallarampurChiniMillsLtd. BajajHindusthanLimited *ChangeinFinancialYearEnding

1,038.40 535.70 1,238.4 1,320.00 2,475.90 842.50 2,544.7 2,343.20 1,715.10 2,172.30 5,576.20 4,676.8 6,534.70 41,681.80 30,797.30 68.8 1,260.40 1,316.00 N.A 440.3

493.30 775.4 2,665.3 1,263.90 2,807.10 142.70 7,493.7 2,447.10 1,385.00 2,405.90 5,555.50 6,936.6 8,375.90 50,179.30 31,266.60 1,698.6 991.8 1,390.00 1084.6 214.5

198.00 691 2,838.4 738.10 2,235.00 119.20 7,575.7 2,488.30 1,267.30 1,583.10 6,980.70 6,387.9 7,269.40 62,581.40 37,124.00 1,119.9 1,176.40 10,683.00 4.3 3201.1

1760 665.7 2731.1 N.A 30.8 2028.9 5,181.0 2726.7 1707 2385.2 7746 4,319.9 4004 76080.7 40992. 244.4 1190.2 11617 1,613.0 N.A

AgricultureMonthlyUpdate

QuarterlyFinancialResultsRevenue(INRmn)

Companies DeepakFertilizers& PetrochemicalsCorporation SouthernPetrochemical IndustriesCorporationLtd. TheFertilizersandChemicals TravancoreLtd. MangaloreChemicals& FertilizersLtd. GujaratNarmadaValley FertilizersCompanyLtd. EscortsGroup JainIrrigationSystemLtd DCMShriramConsolidated Ltd. GujaratStateFertilizers& ChemicalsLtd RashtriyaChemicals& FertilizersLtd. NationalFertilizersLtd ChambalFertilizers& ChemicalsLtd UnitedPhosphorusLtd. CoromandelInternational Limited TataChemicalsLtd. ITCLtd. MahindraandMahindra (M&M) MadrasFertilizersLtd. RallisIndiaLtd. AprJun 2012 N.A. N.A. 5,210.60 5,991.90 8,709.30 N.A. N.A. N.A 8709.3 N.A. 18,066.60 N.A. 362.5 18427.6 30,208.90 N.A. 176,708.10 5,135.30 3,383.10 JulSep 2012 N.A. N.A. 7,124.10 8,390.60 11,657.70 N.A. N.A. 13,390.80 11657.7 N.A. 19,465.70 N.A. 299.6 26,606.00 41,655.10 N.A. 92,525.80 6,683.60 4,806.20 OctDec 2012 N.A. N.A. 6,767.20 6,929.70 11,192.00 N.A. N.A. 13,370.60 11192 N.A. 18,183.80 N.A. 375 24,009.30 41,704.60 N.A. 102,425.70 7,644.70 3,398.10 JanMar 2013 N.A N.A N.A 6498 10966.6 N.A N.A 14172.7 10966.6 N.A 11486.2 N.A 491.7 21259.6 33617.7 N.A 389802.9 5,547.7 2786.5

AgricultureMonthlyUpdate

BayerCropScienceLtd BallarampurChiniMillsLtd. BajajHindusthanLimited *Changeinquarter

8,994.40 N.A N.A

8,265.60 N.A N.A

5,591.00 N.A N.A

3674 N.A N.A

QuarterlyFinancialResultsIncome(INRmn)

Companies DeepakFertilizers& PetrochemicalsCorporation SouthernPetrochemical IndustriesCorporationLtd. TheFertilizersandChemicals TravancoreLtd. MangaloreChemicals& FertilizersLtd. GujaratNarmadaValley FertilizersCompanyLtd. EscortsGroup JainIrrigationSystemLtd RashtriyaChemicals& FertilizersLtd. NationalFertilizersLtd ChambalFertilizers& ChemicalsLtd UnitedPhosphorusLtd. CoromandelInternational Limited TataChemicalsLtd. ITCLtd. AprJun 2012 N.A. N.A. 1,041.50 125.00 327.4 N.A. N.A. N.A. 520.1 N.A. 33.7 1,150.5 1,075.90 N.A. JulSep 2012 N.A. N.A. 262.60 564.2 723.8 N.A. N.A. N.A. 7.4 N.A. 19.9 2,368.8 2,567.70 N.A. OctDec 2012 N.A. N.A. 798.1 58 1,007.30 N.A. N.A. N.A. 124.2 N.A. 28.8 683.9 2,240.70 N.A. JanMar 2013 N.A N.A N.A 168.4 672.6 N.A N.A N.A 1070.4 N.A 46.3 116.7 1880.3 N.A

AgricultureMonthlyUpdate

MahindraandMahindra (M&M) MadrasFertilizersLtd. RallisIndiaLtd. BayerCropScienceLtd BallarampurChiniMillsLtd. BajajHindusthanLimited *Changeinquarter

10,263.60 189.7 241.7 887.4 N.A N.A

9,780.90 428.7 615.6 978.5 N.A N.A

9,149.50 272.1 220.3 9,034.00 N.A N.A

14276.9 351.6 112.6 718 N.A N.A

EventsCalendar
AgriTechIndia2013 Date:23rd25thAug2013 Venue:BangaloreInternationalExhibition Complex City:Bangalore ContactNo:911126682045 Organizer:MediaTodayGroup Website:www.agritechindia.com/index.html GrainTechIndia Date:23rd25thAug2013 Venue:BangaloreInternationalExhibition Center City:Bangalore ContactNo:911126681671 Organizer:MediaTodayP.Ltd Website:www.biztradeshows.com/trade events/graintechindia.html

AgricultureMonthlyUpdate

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AgricultureMonthlyUpdate