Presentation on Indian Agriculture

2. Outline of presentation

5. YES Bank – An Introduction

6. A Differentiated Approach to Banking

10. Agriculture in India Burgeoning Population of over 1.1 billion Agriculture in the livelihood of about 60% of the population

11. Indian Agriculture Scenario STRENGTHS Rich Bio-diversity Arable land Climate Political OPPORTUNITIES Horticulture Dairy Retail Exports / Agro-based Industry WEAKNESS Fragmentation of land Low Technology Inputs Unsustainable Water Mgmt Poor Infrastructure Low value addition THREATS Unsustainable Resource Use Unsustainable Regional Development Imports

12. Indian Agriculture Unique socio-economic & political fabric- government plays a key role within the agriculture sector. Agricultural initiatives have been predominantly driven & supported as the realm of the public sector Increased interest and participation from the private sector in recent years.

13. Progress: Indian Agriculture has made rapid strides since Independence From food shortages and import to self-sufficiency and exports. From subsistence farming to significant 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 Green Revolution: 1967 - 1978 - Exponential increase in yield - largely technology driven and built through a three pronged focus: Increasing the area under cultivation; Double-cropping existing farmland; Using seeds with improved genetics. Solidly in collboration with US – Seed technology and Land Grant Pattern of Developing Indian Agri Universities

14. Governance: India & US Agriculture Sector in India and United States have to be viewed in their distinct context and cannot be compared. However both share a federal governance structure Governance being at the Centre and State US - Strong institutional frameworks - Some Principles & innovations adaptable to an Indian Context Opportunity to collaborate Govt-Govt, Govt-Private, Private-Private Innovation & Knowledge sharing

15. Institutional & Governance Reform Green revolution -largely technology driven; Next revolution in Indian Agriculture - Institutional Reform This is the foundation to addressing many of the challenges in the sector Shift from the commodity centric approach of the past to projectization approach : Enhancing Bank ability within the agribusiness sector. Public-Private Partnership - institutional innovation mechanisms – adaptation/mapping of successful principles from infrastructure Recognize innovations in public policy to enable scaling up as a mass development model. Linkage of farmers with markets, within the ambit of agribusiness Recognize & Facilitate the important contribution of the private sector - bringing in Innovation, Investment, Technology & Expertise.

17. Credit Availability is a key-priority, and in most countries it is supplemented and/or subsidized by the government Banks perceive agriculture as less attractive component of their portfolio The United States has evolved Institutional structures to incentivize, direct & progressively meet any deficit for credit to agriculture sector An alternative to supplement the regulatory stipulations such as priority sector lending norms

18. Indian Agriculture … Integration of all the links in the Food Value Chain from the Farm Gate to the Food plates would make Agribusiness competitive. Demand for quality and value added products and inadequate Agri Infrastructure offers investment opportunities at each stage of Food Chain.

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20. Transition from Agriculture to Agribusiness

21. Processing : Value Addition Much of the fruits and vegetable produce is sold as fresh products. Processing accounts for only small portion of agricultural value. Wastage levels are extremely high. Improved post harvest interventions: price support mechanism, grading, handling, storage, packaging, marketing, processing.

22. Investment Opportunity R&D; Collaborations Inputs & Technology – High Yield Seeds, Soil Treatment etc. Mechanization – tractors, sprinkler irrigation etc, High Value Agriculture : Horticulture, Dairy, Meat Products. Skill Development: Technology Adoption, Practical Training & Capacity Building

25. India witnessing unprecedented changes in demographic and economic profile…..

26. …….likely to have strong bearing on food demand Increased consumer discern for quality and hygiene – pushing India up the food demand curve

27. On the other hand supply trends indicate stagnation …

28. with serious challenges to supply chain efficiency Fragmented Land holdings Poor market orientation Low productivity & marketable surplus

29. These trends are likely to lead to a supply – demand gap in the near future

30. Requiring focus on high impact solutions to mitigate the mismatch

31. Indian Government has been playing a significant role to combat food security challenges

32. The Industry has taken some path-breaking initiatives to augment food supplies & develop agri-infrastructure Case Study 1: FCI & Adani partnership for Logistics

33. Case study 2: Integrated Agro Food Park Unique first of its kind integration of various agribusiness value chain components. Spatial combination of agro-processing and non-agro functions (building, industrial estate or region). Scale in production further enable industrial processing.

34. Case study 2: Integrated Agro Food Park (cont’d)

35. Opportunities for private participation Partnering with Public sector for Commercialization of agricultural research Extension and Knowledge transfer Farm inputs sector Slow release fertilizers Specialty agrochemicals Hybrid and GM seeds Micro-irrigation Processing and value addition of perishables Fruits & Vegetables Milk products Development of agricultural infrastructure Modern Terminal Markets Food Parks Logistics and warehousing Building efficient post harvest supply chains

36. Thank You