Agriculture as a Profit Business -- Reality is coming and we must spred this information
- Indian politicians never allowed Agriculture as an Industry including Jat elected MP's MLA's. This is now a future. People with less land are moving out of Agriculture and large Jat faremrs are trying to consolidate and jats are not aware of the great potentials of land, big Jat faremrs will be easily fooled by business houses and land will be gone forever. In US, govt support its farmers best in the world, best subsidies and its an industry so all benefits fo taxes etc. South India states are already copying that structure and its very difficulty for anyone to snatch land from a farmer but nothing done in Westren UP, Harayana, Rajasthan etc. Jats get some petty money and immediately spend it one Cars, bunglaows etc and again become totally poor and no means to earn livelihood. Open and leagl extortion. LAND SHOULD BE LEASED ONLY AND PRICE SHOULD BE SET ACCORDINGLY. LAND SHOUDN"T BE SOLD AT ANY COST. LOOK AT DELHI VILLAGES AND THEIR KIDS 50% ARE POOR AND NO MEANS. ALL LOCAL ALM TAKING< SHOPKEEPRS ARE BECOMING RICH. ANY LEADER SEEING THIS BIG OPPORTUNITY AND IF MISSED OPPORTUNITY THE DANGER ??????http://economictimes.indiatimes.com/opinion/india-emerging/Investors-say-agricultural-sector-still-shows-promise/articleshow/6482834.cms?curpg=3
Investors say agricultural sector still shows promise
The sector fuelled the Indian economy much before technology services grabbed the spotlight. Now, as more consumers demand fresher and organic produce from farms across the country, agriculture is emerging as an entrepreneurial opportunity that promises a largely recession-proof and scaleable business.
The number of venture investments in agribusiness firms and start-ups rose to 11 in 2010 from nine in 2009, according to data from research firm Venture Intelligence. The amount of money flowing into the sector almost doubled to $167 million this year from $89 million in 2009.
That money is going into firms such as REI Agro, Krishidhan Seeds, Tirumala Milk Products, Karuturi Global and Global Green Company. These firms process and develop products based on biotech seeds, basmati rice, milk, flowers, alternative fertilisers, livestock feed, fruits and vegetables. While the money flowing into agricultural ventures still lags behind other sectors such as healthcare, internet and technology start-ups, the sector still shows promise, according to investors.
“Demand for consumption is rising, and this is making agricultural ventures attractive. The sector is resilient because demand for food will always be there,” said Rajesh Srivastava, chairman and managing director of Rabo Equity Advisors, which manages a food-and-agriculture-focused fund.
Data collated by ICICI Bank said that the Indian agricultural and food business is expected to double to $280 billion in next decade. There is an opportunity of private investments up to $50 billion by that time.
It is this vitality in the agri-business that entrepreneurs are spotting opportunities everywhere — eco-friendly clothing, mobile devices that control agriculture pumps, or making artificial diet for silkworms.
Rice — still rising
Rabo recently invested $10 million in LT Foods, an Indian exporter of basmati rice. LT Foods has now started to provide raw edible material for making rice-based snack foods to companies such as potato-chips maker Frito-Lay — a company owned by PepsiCo — and similar brands in North America.
“We are growing at 15-20% annually, and hold half of America’s basmati rice market now,” said Vijay Kumar Arora, chairman of LT Food. This year, Mr Arora expects to draw revenues of `1,200 crore as against `1,100 crore last year.
Entrepreneur such as Rajasekhar Mamillapalli is going to great lengths to grab the attention of the environmentally conscious — even if it means making a dress entirely out of banana plant or aloe vera. Mr Mamillapali, with local artisan C Sekhar, runs Anana Fit, which has bagged orders to make eight lakh T-shirts for a Chinese company and one lakh sarees for an NGO — with yarn made completely out of banana-plant fibre.
The Chennai-based start-up has also attracted customers from France, UK, Australia and Singapore, who want to reduce greenhouse gas emissions and increase their carbon credits. With India being one of the largest banana producers in the world, the start-up utilises the banana plant waste bought from the farmers that would otherwise have been disposed off, said Mr Mamillapalli, a research scholar from National Institute of Technology, Rourkela. They are planning to raise a funding of `25 lakh to scale up their business and patent their technology. “No machinery is involved here. The fibres are taken out with the help of needles and then treated biologically to prepare fibres for yarn-making,” said Mr Mamillapalli.