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India Agriculture Industry Report - 2015

India Agriculture Industry Report - 2015

This report profiles India’s agriculture industry, discussing market trends and outlook into 2015 and beyond. The report also highlights leading players in the sector including Tata Coffee Ltd, Ruchi Soya Industries Ltd and McLeod Russel India Ltd.

Agriculture is the third largest sector of India’s economy after services and industry. Though the country’s dependence on agriculture has fallen considerably, its importance cannot be forsaken. Still, more than half of the Indian population depends on this sector for their livelihood. India has emerged as a global power in the agriculture sector by becoming a leading producer of food grains, oilseeds, commercial crops, fruits and vegetables. Yet, the country needs to increase the yield of crops to feed its ever-growing population. India continued to lead the world in the production of rice, wheat, cotton, sugarcane, tobacco, fruits and vegetables. But, the major challenge for the country is the insufficient production of pulses and oilseeds.

FYE Mar-15 was a tough year for the Indian agriculture sector due to deficient rainfall. Scanty rainfall was recorded in the monsoon season, which led to the decline in agricultural harvest with lower production in all the major crops. The declining trend continued in the FY16 monsoon season as India saw deficit in rainfall yet again, which led to drought like conditions in many parts of the country. This will likely result in lower agricultural output in FY16.

The long-term outlook for Indian agriculture is firm because of growing production and improving yields. Reforms, such as the opening of retail sector to foreign companies and adoption of model APMC Act by states, will increase direct sourcing from farmers and in turn benefit the farmer and the sector as a whole. The only concern for India is to match the agricultural growth with population growth. The country needs to restrain its reliance on agricultural imports which may put the currency under pressure and cause an imbalance in the current account.

Key Points:

According to MOSPI, the agriculture and allied sectors contributed around 16% to the country’s GDP at factor prices as of FY15.

The country’s food grain production grew at a CAGR of 3% during 2005-14. Scanty monsoon rainfall received by the country in FY15 led to a decline of 4% y/y in food grain production.

Agriculture sector saw strong growth in FY14 backed by good monsoon rainfall. The sector registered a GVA growth of 3.6% in FY14 against 1.2% in FY13. However, the growth dipped to 0.6% y/y in FY15, due to draught like conditions as a result of deficient monsoon rainfall. In 1HFY16, growth was at 2.0%, lower than the 2.4% growth recorded in 1HFY15, due to less than adequate rainfall in some parts of the country.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-India
2.2 Food grains
2.3 Oilseeds
2.4 Commercial crops
2.5 Fruits and vegetables
2.6 Sector outlook

3. Leading Players and Comparative Matrix
3.1 Leading players
3.1.1 Tata Coffee Limited (TCL)
3.1.2 Ruchi Soya Industries Limited (RSIL)
3.1.3 McLeod Russel India Limited (MRIL)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts
Table 1: Major crops grown in India
Table 2: Major canals in India
Table 3: Major recommendations of the committee of state agriculture marketing
Table 4: Major food grain producing states in India
Table 5: Major oilseeds producing states in India
Table 6: Key financial ratios of the leading players (FYE Mar 15)
Table 7: Latest financial results of the leading players (1HFY16)

Chart 1: Annual food grain production-India
Chart 2: GDP contribution by sectors-India
Chart 3: Agriculture sector growth rate
Chart 4: Cumulative FDI inflows in the agriculture services
Chart 5: Position of constituent parties in lower house of parliament
Chart 6: Agricultural value added per worker
Chart 7: Employment in agriculture- India
Chart 8: Quarterly GDP growth rate-India
Chart 9: Average monthly USD to INR exchange rate
Chart 10: Inflation-India
Chart 11: Repo rate
Chart 12: Food grains yield in India
Chart 13: All India rice production
Chart 14: Major rice producing states of India
Chart 15: All India wheat production
Chart 16: Major wheat producing states of India
Chart 17: All India production-other cereals
Chart 18: Annual pulses production
Chart 19: Major pulses producing states in India
Chart 20: Share of food grain by production in MT
Chart 21: Pulses import in India
Chart 22: Basmati rice exports from India
Chart 23: Oilseeds production in India
Chart 24: Major oilseeds of India by production volume
Chart 25: Edible oil imports
Chart 26: Cotton production in India
Chart 27: Sugarcane production in India
Chart 28: Annual tobacco production and exports
Chart 29: Tea and coffee exports from India
Chart 30: Fruit production in India
Chart 31: Annual production of major fruits in India
Chart 32: Vegetable production in India
Chart 33: Annual production of major vegetables in India
Chart 34: Average annual rainfall in India
Chart 35: Deviation from normal rainfall during monsoon months
Chart 36: Annual coffee production by TCL
Chart 37: Net sales of TCL
Chart 38: Profit margins of TCL
Chart 39: Annual edible oil sales of RSIL
Chart 40: Net sales of RSIL
Chart 41: Profit margins of RSIL
Chart 42: Annual saleable tea production by MRIL
Chart 43: Net sales of MRIL
Chart 44: Profit margins of MRIL

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