Video Case

Presentation
s

Agricultural Industry in India

At 179.9 million hectares, India holds the second largest
agricultural land in the world
Agriculture accounts for 14 per cent of gross domestic product
(GDP) and about 11 per cent of Indias total exports in FY12
GDP of agriculture and allied sectors in India reached US$ 151.8
billion in FY12
India is the world's largest rice exporter and second in terms of
wheat exports
India's agro exports during 201314 touched US$ 45 billion as
against US$ 25 billion in 201112

http://www.ibef.org/industry/agriculture-india.aspx
2

Indian Institute of Management, Shillong

Challenges plaguing Agricultural Industry

currently
Slow Down in Agricultural Growth
Weak Framework for Sustainable Water Management and
Irrigation
Inadequate Access to Land and Finance
Weak Natural Resources Management
Weak delivery of basic services in rural areas

http://web.worldbank.org/
3

Indian Institute of Management, Shillong

Opportunities in Agricultural Industry

Various initiatives have been taken by the government of India to
tackle the challenges. Few of the most prominent ones include :
1. Government Rashtriya Krishi Vikas Yojana (RKVY)
2. National Policy For Farmers, 2007
3. Expansion of Institutional Credit to Farmers, National Rural
Health Mission
4. National Food Security Mission

http://web.worldbank.org/
4

Indian Institute of Management, Shillong

Impact of Subisidies offered in other

countries on the Indian Farmers
As per Senior Research FellowDavid Laborde, subsidies offered
in other countries can have detrimental effects on the global
food system as well as on food security
These are protecting and raising incomes for their farmers at
the expense of fair prices that would help raise incomes among
poor, smallholder farmers in developing countries
In the long run, these policies will lead to protectionist policies
in other countries and restrictive markets, which, in turn, will
increase market instability and food price volatility for all

http://www.ibef.org/industry/agriculture-india.aspx
5

Indian Institute of Management, Shillong

Supply Chain for Rice

Sharma, V., Giri, S. and Rai, S. S. (2013), Supply Chain Management of Rice in India: A Rice Processing Companys Perspective,
International Journal of Managing Value and Supply Chains, Vol. 4 No. 1, pp. 25-36
6

Indian Institute of Management, Shillong

Redesigned Supply Chain framework for

Rice

Indian Institute of Management, Shillong

Role of media, corporates and NGOs in an

agrarian economy

The agrarian economy is characterised by low wages, underdeveloped infrastructure and financial literacy

Media helps the farmers to get abreast with the latest developments
in the farming techniques and products. Farmers will soon have a 24hour TV channel named DD KISAN dedicated to agriculture and related
issues, providing the farming community with information related to
aspects like weather forecast and seeds. These information help the
farmers to improve their productivity and efficiency

Indian Institute of Management, Shillong

Role of media, corporates and NGOs in an

agrarian economy
In 2000, Hindustan Unilever Ltd incubated a unique model of empowering women
by selling the HUL products in the villages. They started with a few villages in
Andhra Pradesh and have employed 45000 Ammas or women across 15 states.
On an average, an Amma earns 700-1,000 a month, and since most of them live
below the poverty line, this earning is significant, often doubling the household
income. HUL came up with value price combo packs to cater to the market
Non-Governmental Organizations (NGOs), are significantly contributing in
providing social services and assistance in activities such as food security, land
reform, environmental protection, emancipation of the poor and marginalized
sectors of the society, restoration of civil rights, etc., that aim at contributing
towards faster economic progress and improvements in the quality of life of the
poor and marginalized.

Indian Institute of Management, Shillong

Methods of improving agricultural credit

1. Promote financial inclusion
2. Access to institutional sources of credit
3. Liberalized KYC (Know Your Customer) norms
4. Implementation of government policies
5. Interest rate subvention

10

Indian Institute of Management, Shillong

Thank You