Here is a summary of my talk at the BRIC-IBSA Business Forum in Rio De Janeiro on 14 April 2010
Investment Opportunity in Indian Food & Agri Business Sector is founded on Four Pillars
Large Sector with further tremendous upside
Indian Consumer is seeking new products
Production system has potential to supply those new products
The Business environment is very conducive
Pillar 1: Large Sector & Further Upside
Size > US$ 200 Billion
50% of household expenditure is on Food
50% of workforce is engaged in agriculture
That rest of the economy is outgrowing agriculture, is a signal for investment opportunities in agriculture
Pillar 2: The Consumer Dimension
More than 1 billion consumers
Rising incomes & rapid urbanisation changing the profile of consumption
Global experience: US$ 1000 per capita is the sweet spot for shift in food consumption patterns, from basic to value added food
Consumer is looking for new value: quality, variety, safety, convenience etc.
Besides this domestic opportunity, there are export prospects too in several products
Pillar 3: The Production System
Large arable area > 150 million ha
Rich & diverse agro climatic zones
Characterised by small farmers
Good scope for productivity enhancement through technology induction
Pillar 4: The Business Environment
Significant private participation after policy reforms in the last decade
Traditional farm labour seeking new jobs
Large infrastructure investments in the recent past: roads, telecom, irrigation etc
Thrust area for Government as a strategy for “inclusive growth”
The Investment Opportunities
Innovation at the consumer end of the chain (Processing, packaging, retail formats)
Effectiveness at the farmer end of the chain (Productivity, quality - pre & post harvest, labour saving technologies)
Efficiency along the whole chain (Integration, coordination, infrastructure)
Cross BRIC-IBSA collaboration imperative (Food Security, Climate Change)
Sir, I want to know why our growth in rural market has not reached up to the mark after doing all sorts of research on the above mentioned things. Where are we still lacking? Is it education to the rural people or our capacity to reach them?are we still following old thumb rules ,i.e echouple that you have initiated two decades back, or any other programme? I would love to read your answers on the above questions.
ReplyDelete@knight27: I believe, pace of reforms is the reason. Do read "Reform to Re-farm" at http://bit.ly/ac7yc9
ReplyDeleteThis blog r so informatics.all kind of Business Opportunities India provided this blog.... thanks for this kind of information..
ReplyDeleteSaurabh Singh