March 6, 2014

A perspective on agricultural and tradeissues of India ….

Indian Agriculture – An Overview…

Challenges facing Indian agriculture & Syngenta’s contribution…

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Some facts….

By 2050 global

population will rise to 9

billion….out of which 1.7 billion will be

in India alone

Total calorie requirement will go up

from 2495 to 3000 Food grain production would need

to increase by 5.5 MT annually

Demand for high-value food commodities will go up by > 100% due to migration

of people into cities, increased wealth, shift towards diets rich in protein

Currently..52% of our population is involved in Agriculture....

yet it contributes just 13.7% to India’s GDP

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Brazil

Russia Ind

iaChin

a

Indon

esia

USA

Mexico

South

Africa

Zimba

bwe

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

Hec

tare

of A

rabl

e La

nd

Source: UN and FAO, 2005

Arable Land (ha) per person

Most populous countries have least room to expand

Produce more with less…Land | Water | Labor

Growing resource constraints

• Much of India’s total arable area already in use (46%)• Most remaining land has serious soil and terrain

constraints

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There is also the problem of….Decreasing size of landholding

86% growers in India are

smallholders

They cultivate 44% of the land and

contribute 50% to farm output

Landholding declined from 2.30ha in the 70s to 1.32 ha in

2000-01

Average size would be a mere 0.68 ha

in 2020 and 0.32 ha in 2030

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And the degradation of the production environment….

Soil erosion has degraded 120.72 million ha of land in India

8.4 million ha has soil salinity and water-logging

Water-table & water quality deteriorating

Green-revolution belt exhibiting problems owing to over-exploitation and mismanagement of soil-and-water resources

6Source: UN-Water and FAO

Growing resource constraints

Agriculture is India’s largest user of

water>40% lost to

inefficient practicesNearly 50%

agricultural land is rain-fed

Produce more with less…Land | Water | Labor

7Source: UN-Water and FAO

Farm demographics- aging population and migration to cities influence labor availability

High-tech machines, complex production processes and strict production regulations require skilled labor

Growing resource constraints

Produce more with less…Land | Water | Labor

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Indian Agriculture

● India agriculture has an extensive background which goes back to 10

thousand years. At present, in terms of agricultural production, the

country holds the second position all over the world.

● Indian Agriculture has made rapid strides since independence;- From food shortages and import to self-sufficiency and exports.- From subsistence farming to intensive and technology led cultivation.- Today , India is the front ranking producer of many crops in the world.- Ushered in through the green, white, blue and yellow revolutions

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Total Area 7thIrrigated Area 1stPopulation 2ndEconomically Active population 2nd

Total Cereals 3rdWheat 2ndRice 2ndCoarse grains 4thTotal Pulses 1stOil Seeds 2ndFruits and Vegetables 2nd

Implements (Tractors) 3rdMilk 1stLive Stock (castles, Buffaloes) 1st

Indian Agriculture – Respective Global Rank

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● Contributes to 14% of GDP

● Provides food to 1.25 Billion people

● Sustains 65% of the population : helps alleviate poverty

● Produces 51 major Crops

● Provides Raw Material to Industries

● Contributes to 1/6th of the export earnings

● Huge bio-diversity : 46,000 species of plants & 86,000 species of animals Largest

producer in the world of pulses , tea , and milk

● India was largest exporter of rice and guar gum, and second largest exporter of

cotton and beef (buffalo meat).

● Second Largest producer of fruits & vegetables,wheat,rice,groundnut & sugarcane.

● Our major imports: edible oils (US $11 billion) and pulses (about US $ 3 billion).

Indian Agriculture- Some Facts

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Agriculture productivity in India - 1970 to 2010

Crop

Average YIELD, 1970-1971

Average YIELD, 1990-1991

Average YIELD, 2010–2011

kilogram per hectare kilogram per hectare kilogram per hectare

Rice 1123 1740 2240

Wheat 1307 2281 2938

Pulses 524 578 689

Oilseeds 579 771 1325

Sugarcane 48322 65395 68596

Tea 1182 1652 1669

Cotton 106 225 510

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Indian Agriculture – Major Crop Areas

Rice 106 million tonnes

Wheat 96 million tonnesCoarse Cereals 41 million tonnes

Pulses 20 million tonnes

Oilseeds 20.9 million tonnes

Sugarcane 29.9 million tonnes

Total Geographical Area - 328 million hectaresNet Area sown - 142 million hectaresGross Cropped Area – 190.8 million hectaresMajor Crop Production;

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Crop Average farm yield in Bihar

Average farm yield in Karnataka

Average farm yield in Punjab

kilogram per hectare kilogram per hectare kilogram per hectare

Wheat 2020 N.A 3880

Rice 1370 2380 3130

Pulses 610 470 820

Oil seeds 620 680 1200

Sugarcane 45510 79560 65300

Indian Agriculture – Strong regional variations in yield

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● STRENGTHS- Rich Bio-diversity- Arable land- Climate- Strong and well dispersed

research and extension system

● OPPORTUNITIES- Bridgeable yield crops- Exports- Agro-based Industry- Horticulture- Untapped potential in the

North Eastern part of India

● WEAKNESS- Fragmentation of land- Low Technology Inputs- Unsustainable Water

Management- Poor Infrastructure- Low value addition

● THREATS- Unsustainable Resource Use- Unsustainable Regional

Development- Imports- small and shrinking holding

size (1.16 ha in 2010-11); - climate variability...high risk.

Indian Agriculture – Present Scenario (SWOT)

But the future is safe and optimistic for the next decade and more

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10 challenges faced by agriculture in India

● Small and fragmented land holdings● Manures, Fertilizers and Biocides ● Shortage of good quality Seeds for poor peasants● Problem of Irrigation● Lack of mechanization ● Soil erosion● Agricultural marketing● Inadequate storage facilities ● Inadequate transport ● Scarcity of capital

Classification: PUBLIC Draft

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Contribution of Syngenta in India

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Syngenta in India is….

• A leading Agribusiness • Providing Integrated solutions• Engaging with growers at every

step.• Focusing on 8 strategic crops.• World class R&T centre and

Manufacturing site in Goa• Research stations across India• Seed manufacturing facilities

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Our Strategy

Innovate

Integrate

Outperform

Develop new solutions combining biology and chemistry, incorporating adjacent technologies and building new business models

Outperform on the farmer’s field, gain market share, sustain profitable growth

Create integrated offers supported by agronomic expertise and understanding of growers challenges

Our strategy has growers’ needs at its heart

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Our Philosophy

Taking responsibility for our products- from production to safe use, storage and disposal is a priority at Syngenta

17,000 trainings for farmers in 2012

More than 1 million farmers and

nearly 1900 Channel partners trained

6500 posters in regional languages distributed

Active participation in ‘Container

Management Program’ of

Crop Life India

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Our Collaborations

Participating in 2nd Green

Revolution In Eastern States Rice ICS project with PAU

Grape Project with National

Research Centre (NRCG)

Partnering with Punjab Agriculture University (PAU)

Food Security AgendaCollaborating with India’s biggest cooperative MARKFED

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Corporate Social Responsibility

Sparsh contibutes to education, skill development, women empowerment in Goa

Syngenta Krishi Mitr gives

innovative crop solutions to

growers

Me & Mine addresses working conditions on seed farms

Preserving the environment at our global supply base in GoaSyngenta Foundation India

helps and trains smallholders

We conduct HSE training for

growers through Me & Mine

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IndiaThe Good Growth Plan

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More foodLess waste

One planet. Six commitments.

The Good Growth Plan

Make cropsmore efficient

Increase average productivity of the world’s

major crops by 20% without using more land, water or

inputs

More biodiversityLess degradation

Rescue more

farmlandImprove the fertility of 10

million hectares of farmland on

the brink of degradation

Help biodiversity

flourishEnhance

biodiversity on 5 million

hectares of farmland

More healthLess poverty

Look after every worker

Strive for fair labor conditions throughout our entire supply chain network

Empower smallholders

Reach 20 million smallholders

and enable them to increase productivity

by 50%

Help people stay safe

Train 20 million farm workers on

labor safety, especially in developing countries

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India Examples

GroMore an integrated rice solution comprising of simple protocols offering timely advice ‘in the language of the farmer’ to establish and protect the crop,

delivering immediate yield increases of up to 30%.

Tegra™: Piloted in South India in 2009. An integrated growing system, delivering more productive tillers and a yield increase of up to 30%.

Project Nirmiti: a program that utilizes a network of local residents to make agricultural knowledge, inputs and services available to smallholders in rural

India to improve farming practices, productivity and livelihoods.

Techno-Commercial Centers: Farmer Producer Companies set up by government in Madhya Pradesh aim to help India’s smallholders access

technology and achieve economies of scale in purchasing, marketing etc.

Syngenta Me and Mine utilizes a network of local residents to make agricultural knowledge, inputs and services available to smallholders in rural

India to improve farming practices, productivity and livelihoods.

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Classification: INTERNAL ONLY

Joints projects with PAU  “ Popularsing recommended agronomic practices of crop viz Rice,Corn,Wheat & Potato” Major PROJECT GroMore Rice / MaxWheat

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Summary of North GroMore pilot project with PAU – 2012/13

Classification: INTERNAL USE ONLY

Sharing GroMore concept

PAU officials sharing GroMore Tillers to farmers

PAU officials & growers Counting GroMore Panicles & grains

Outcome for Grower & SyngentaBetter ROI for grower

Syngenta GroMore PilotYield increase – 32%

Syngenta CP protocol – Rs.7731/ha

Grower CP spend – Rs.4790/ha

Additional income – Rs.21917 / ha

August 2012 September 2012 October 2012 onwards

MOU Signed with PAU

June 2012Oct. 2011

Actual yield and quality data is expected by Oct end 2012

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Outlining GroMore Project

Geography

Central Plain Zone

Sub Mountainous Undulating Zone

Undulating Plain Zone

Developing

Amritsar Gurdaspur

Developed Ludhiana

Mixed Jalandhar Kapurthala

Developed Geography

Developing Geography

• Selected 5 Districts cover; • Major rice agro climatic zones• 40% of Punjab rice acreage & production• PAU presence (Farm Advisory Services)• Both Rice-Wheat & Rice-Potato rotations

• Selected 5 Districts in Punjab – Divided each in to two sub districts.• 5 Villages in each sub district – 10 Villages per district• 5 Growers per village – 250 Growers in all 5 districts• Undertaken ½ Acre of Grower for GroMore – 125 Acres Under GroMore

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Data Summary

• Total Grower Data – 173 (8 Sub Districts )

• ROI - Average yield increase value is R.22K/Ha over farmer

practice with Rs. 3K/Ha increase in CP spend.

• Average Increase in Yield & Additional Income across

geographies;

  Developing Developed Mixed

Yield Increase - MT/ Hectare 1.82 1.56 1.68

Yield Increase % 41% 20% 30%Additional Income/ Hectare -

INR 23321 19904 21520

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GroMore – Summary of “ Grower feedback”• Nursery in beds

is meaningful• Line transplantation helped in aeration of crop hence less pests/Disease & Agri.ops are easy• Reduced Fertilizer inputs• Actara drench gives lush-green-healthy seedlings. • One line off is good• Thionutri at 15 DAT

gives more tillers• Not only preached but

practiced too.

• GroMore Plot is like garden – Everyone stops to see.• Liako prophylactic is unique.• Fellow farmers who

made fun of us are

now appreciating.• More hills/Sq. Meter

will yield more.• Uniform crop emergence/tillering.• Had to spend Rs.800 on manual weeding in my plot• The only company having complete solution.

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GroMore is a dream harvest for farmers !!

Early Harvesting - GroMore harvesting is early by 15 days , means will be able to advance sowing of Rabi crop for a better harvest .

Better Output Price – because of better quality GroMore crop fetching min 22 $ /MT means 9% higher than farmer practice

GroMore Practice Farmer Practice 1st GroMore harvest in market

Observe the grain color

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GroMore – Summary of officials'’ feedback

Deputy commissioner Gurdaspur – Dr. A Trikha IAS

Dr.MK Saini – FASS ( Farm advisory service Gurdaspur)

PAU Vice- Chancellor , Dir. of Agriculture Punjab, ADG IRRI, Head of PAU Kissan Club, PAU governing board members

NABARD Team & Deptt of Agriculture officials

We feel good to attend such knowledge dissemination meetings

By this unique story telling you are not only doing verbal education of rice cultivation but also demonstrating it in farmer fields….is commendable . Syngenta rice team team was recognized in annual PAU Kissan expo.

I would like to thank Syngenta rice team for this kind of Unique initiative in our developing area of Rice.

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Global Nuffield farming Scholars from Canada/Ireland/New-Zealand & Australia (Guests at PAU Kisan Mela) have seen GroMore Rice Plots

“PAU & Syngenta have jointly taken a good initiative with Rice project This will surely enhance rice productivity. Farmer will surely get a yield increase of 20-30%.”Brenda Schlepp 2012 ScholarCanadian Nuffield Agricultural Scholar

“It is seen first time the way farmers are being advise in such a good manner.” Jemma Sadler 2012 Scholar , Wongan Hills in Western Australia,

“It is amazing to see the difference between the GroMore Rice Plot & Farmer practice field .The GroMore Plot is completely free of pest & Farmer Practices was fully damage with pest” Robin Schaefer, Loxton in South Australia

“Hopes of new revolution will come in future with the increase of plant population /m² More Seedling …More crop/YieldGood initiative. Keep it upMr. P.P.S.Pangali (President PAU kisan Club)

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Farmer excited to see the MaxWheat project results

Classification: INTERNAL USE ONLY

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MaxWheat Project- Agronomy informationinformation gave to growers

Classification: INTERNAL USE ONLY

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Safety / Application message….. In all the farmer meeting..

Classification: INTERNAL USE ONLY

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GroMore Rice Approach…. Easy to understand

Strong & Healthy foundation

Strengthen the expectation

Turn hope into reality

Maximize yield and quality

Seedling phase Vegetative Reproductive Ripening

Establish yield & quality foundation Max. yield potential Protect quality

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Thank You!