Global Agriculture machinery makers bullish on Indian market

The Economic Times dt 18/11/10

growing shortage of farm hands and smaller land holdings are forcing many farmers to mechanise their farms, allowing multinational agri implement companies to tap into Indian market. A 2006 study by consulting firm Zinnov said that the agri equipment market in India would grow at a compounded rate of 5% between 2006 and 2010 to touch $8 billion.

Today, a large number of Chinese, Japanese, American and Italian firms has forged alliances with Indian companies. These include Kuboto and Mitsubishi of Japan, Zhejiang Sifang of China, John Deere of the US and New Holland of Italy .

With most of these implements eligible for bank funding, financing is also not a major issue. In Punjab, for instance, the state government has been giving subsidies to farmers purchasing farm machineries like tillers and paddy transplantors through a central scheme from the Agricultural Product Pattern Adjustment Programme .

HR Ravindranath, regional manager of Kolkata-based Ganga Motors, which sells the Sifang range of tillers, says Indian farmers prefer to buy their equipment as the product is competitively priced. The market for tillers in India is placed around 45,000 units of which close to 6,000 are sold in Karnataka alone. Similarly, John Deere, which recently introduced heavy duty 89-HP tractor, is also looking at entering the tiller market.

Zhejiang Sifang, which was founded in 1961, has a number of tie-up including Souza Machinery of Bangalore and Ganga Motors. It is the growing demand for tillers which saw Bangalore-based VST Tillers partner with Mitsubishi over three decades to launch the first of its tillers in the country.

Potato farmers in Punjab have been aggressively buying a variety of imported implements. These include potato graders from New Zealand’s Wyma, potato planters from Italy’s Spedo and potato harvetser from Italy’s Titunni.

However, not all are convinced with the utility of agri implements. Vikram Ahuja of Zamindara Farm Solutions recounts how square balers and rakes (used to collect paddy straw) were found to be economically unviable by marginal and medium farmers. Farmers are often forced to undertake change in planting methodologies.

M&M to expand tractor output to 3 lakh units

Hindu Businessline dt .12/11/10

Mahindra & Mahindra plans to expand its tractor production capacity to over three lakh units in two years.

This marks a 50 per cent jump from the present level of two lakh units from the Mahindra and Swaraj brands across five plants. The company will expand capacity in its existing units by ten per cent and set up a new plant in South India, with a capacity of 75,000 to one lakh tractors.

“The new plant will be ready by financial year 2013,” said Mr Avinash Patankar, Senior Vice-President, Mahindra Farm Equipment Sector.

Yuvraj

M&M is also doubling production of its low-cost tractor Yuvraj at local partner Deepak Diesel's plant at Rajkot. Monthly sales of the Rs 1.75 lakh product are around 750 units and test marketing is underway in Karnataka, Tamil Nadu and Rajasthan.

“We will sell Yuvraj in six States by the end of this year. The national launch will be next year,” said Mr Sanjeev Goyle, Senior Vice-President, Marketing.

The company has targeted annual sales of at least 25,000 units of Yuvraj in the immediate future. It has worked out a production model where the tractor will be assembled by a local partner in regional markets. Output from Rajkot is adequate to meet market demand for the next two years.

Awards

Mahindra FES has instituted the ‘Mahindra Samridhi India Agri Awards' which will recognise contributions from individuals and organisations towards development of Indian agriculture, thereby enhancing rural prosperity.

The award will also acknowledge the best farmer, lady farmer, agricultural university, non-government organisations, and individuals for their contribution to agriculture growth at regional and national levels.

AP to offer subsidy for rabi paddy seeds

Hindu Businessline dt.10/11/10

The Andhra Pradesh Chief Minister, Mr K. Rosaiah, on Tuesday approved a proposal to provide subsidy for paddy seeds for rabi season cultivation to all the farmers affected by the recent floods.

As per preliminary estimates, about 2.93 lakh hectares of agricultural crops were affected due to heavy rains across 13 districts and over 2.85 lakh hectares of paddy crop.

ID cards

Following a review meeting with the Agricultural Department, the Chief Minister agreed to the proposal of issuing identity cards for tenant farmers for every crop or for one year so that they can get seeds and fertiliser subsidy, crop loans and crop insurance.

He approved a proposal to fill up vacancies of 561 posts of scientists in the AP Agricultural University. This will help to impart quality education, high-end research and better coordination and linkages with farming community. The Agriculture Department was directed to notify the worst flood affected mandals to facilitate rescheduling of crop loans and issue of fresh loans to farmers.

JUDICIAL PROBE

Earlier, Mr Rosaiah while expressing anguish at the charges of corruption made by the Telugu Desam President, Mr N. Chandrababu Naidu, said “he would order a judicial probe into the wealth owned by him and Mr Naidu, provided this proposal is agreeable.”

Reacting to some recent accusations against his Government, Mr Rosaiah said that the Government has made all necessary arrangements to provide relief and rehabilitation to those affected by floods.

DuPont eyes $1 b India sales by 2012

Hindubusinessline dt.10/11/10

DuPont is eyeing a turnover of over $1 billion from its India operations by 2012.

“Emerging markets accounted for 31 per cent of our $26.1 billion sales in 2009. We see this share rising, in which India will certainly have a part to play”, Ms Ellen Kullman, Chair and CEO of the Wilmington (Delaware)-headquartered US multinational, told select media persons here on Tuesday.

DuPont India expects do business of $700 million in the current calendar year, about 32 per cent of which would come from its crop protection chemicals (such as ‘Coragen' and ‘Avaunt' insecticides) and seeds (Pioneer Hi-Bred) operations. Another 25 per cent would be accounted for by automotives (paints, engineering polymers, ‘Kevlar' brake linings, etc), with construction (20 per cent) and others (23 per cent) making up the balance.

“Our sales growth averaged 21 per cent during 2003-08, which we anticipate at 26 per cent during 2009-12. India is currently our tenth largest geography and we aspire to take this up to No. 5”, said Mr Balvinder S Kalsi, President (South Asia), DuPont.

Ms Kullman was particularly bullish on the company's agriculture business.

“Out of the $1.4 billion that we invested in R&D in 2009, 50 per cent was dedicated for increased food production. We are working on developing traits for drought tolerance and improved nitrogen use efficiency in crops such as rice and corn that has relevance for India”, she noted.



DuPont India has three production facilities at Savli (near Vadodara, for crop protection products, performance polymers and refinish paints), Medchal (near Hyderabad, for ‘Pioneer' seeds) and Madurai (for filaments and ‘Teflon' non-stick coatings). Besides, there is a DuPont Knowledge Centre at Hyderabad, which is one of its seven global R&D centres outside the US.

“We have invested over Rs 150 crore in this facility, which has 360-plus people from material sciences, biology, chemistry and engineering backgrounds working under one roof. The Centre has generated nine patent applications in less than two years' time,” said the Centre's Director, Dr Homi Bhedwar.

Ms Kullman was evasive on the company's future manufacturing plans in India, including the prospects of producing titanium di-oxide (which it now imports for various paints and coating applications). “We are the world's largest titanium di-oxide producer. Our last plant came up in Taiwan in 1994 and we may need one more for the next decade,” she added.

Nabard sanctions Rs 58 crore

The National Bank for Agriculture and Rural Development (Nabard) on Tuesday sanctioned Rs 58 crore across the state under the Rural Infrastructure Development Fund (RIDF).

Nabard has sanctioned Rs 49.11 crore for the construction of four horticulture degree colleges and Rs 8.91 crore for four polytechnic colleges in eight districts of Andhra Pradesh. The fund will be used to construct college buildings and hostels for the students.

The infrastructure will facilitate horticulture education, research, and technology transfer to the rural economy and the academic needs of the professional diploma and graduate students of horticulture, P Mohanaiah, chief general manager, Nabard, said in a press release.

The colleges will be located in rural areas, the release stated.

AP to reschedule crop loans in rain-ravaged mandals

Hindu Businessline

Hyderabad, Nov. 8

Faced with widespread loss to the farm sector due to the recent rains, the Andhra Pradesh Government has decided to reschedule crop loans, facilitate new loans for sowing during Rabi season and offer additional seed subsidy to farmers in the badly impacted mandals of the State.

This decision follows a meeting at State Secretariat where several Cabinet colleagues interacted with the Chief Minister, Mr K. Rosaiah, to take stock of the latest flood situation and necessary follow-up measures.

Addressing a press conference, the Agriculture Minister, Mr N. Raghuveera Reddy, said more than 2.84 lakh hectares of paddy fields have been affected due to the recent rains.

This will not only impact the farmers financially but also hamper their ability to repay loans.

Rythu Pragati in guntur

Rythu Pragati is a 4 day tradeshow of agriculture inputs, equipments, technology, services, rural development and rural market.. The tradeshow is laced with seminar & conference. The event is scheduled from 6 to 9 March 2011 in Guntur, Andhra Pradesh Farmers from across AP and Agri stake holders from across the country will be mobilized for the event. Over 250 private, Govt organizations will showcase during the show.


Tradeshow:
Objective of the tradeshow is to provide knowledge to farmers about latest agri equipments, technologies and services. The event will also expose them to best farming practices, government/institutional assistance, various schemes, and post harvest management. Over 200 exhibitors representing private sector, government, financial institutions and development bodies will showcase various products and services such as farm equipments, schemes, inputs, technology, best agri practices etc.

Seminar
The concurrent Agriculture seminar will be attended by personal & policy makers from Central & State Governments, Department of Agriculture & Rural developments, Agriculture extension development bodies, private & public enterprises and scientific community. Experts will steer various topics/issues. The meet will also encourage & focus on opportunities for private investment in contract farming, food processing, storage, marketing, agricultural services and agri infrastructure. The Government will be encouraged to showcase investment opportunities as well as received and give clearance to project proposals from Private sector

For more Details
vinod@blazon.co.in