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Chapter: 1 Introduction Of Krishidhan seeds Ltd

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Page 1: Krishi Gcr

Chapter: 1

Introduction

Of

Krishidhan seeds Ltd

Page 2: Krishi Gcr

1. Overview of Company

Introduction

Krishidhan was established in 1996 and has grown into a group of companies committed for excellence in an

integrated seed business based on quality R&D, Production, Quality Control, Processing, Marketing, Sales and

Extension with sole goal of ushering prosperity to farmers both at national and global level. Krishidhan has its

registered office at Indore and corporate office at Pune and major infrastructure base is at"Jalna", the seed

capital of Indian agriculture industry. Krishidhan Seeds is a pioneer and dynamic agricultural biotech company

delivering high quality seeds for the Indian commercial seeds market. Krishidhan is a research-based

organization. Its R&D activities and research stations are recognized by the Department of Scientific and

Industrial Research (DSIR), Govt. of India. The company is actively involved in research, production, processing,

packing, and marketing of high quality seeds of Cotton, Cereals, Pulses, Oil seeds and Vegetables. Recently, it

has incorporated a separate legal entity as Krishidhan Vegetable Seeds India Pvt. Ltd (KVSIPL), a company

dedicated exclusively for vegetable seeds business.

Krishidhan is one amongst the first three sub-licensees of M.M.B. India Ltd., which has commercialized

Bollgard (BG-I) &Bollgard-II (BG-II)cotton hybrids in India. Introduction of other GMOs are on anvil. Krishidhan

seeds are engaged in seed production of different crops seed. Production of genetically pure and good quality

pedigree seed is an exacting task. It requires high technical skills and comparatively heavy financial

investment. At Krishidhan, during seed production strict attention is given to the maintenance of genetic purity

and other qualities of seeds in order to pass on maximum benefits to farmers by introduction of new superior

crop plant varieties. Seed production activities at Krishidhan are carried out under standardized and well-

organized conditions assisted by SAP.

In India, seed production program of Krishidhan is spread over 1,00,000 acres of land in the states of Andhra

Pradesh, Tamil Nadu, Maharashtra, Madhya Pradesh, Gujarat, Uttarakhand, Karnataka, and Haryana. Apart

from India, Krishidhan’s production program is also spread in parts of Europe. KSL has taken up the exigent

task of providing superior quality seeds of wide range of crops to the farmers within the set time frame. The

company recognizes that this is possible only through Quality Seed Production. Krishidhan group of company is

also have a biotechnology & research centre in which they can apply various techniques to improve the

productivity. Biotechnology is committed not only to care human being but to care total ecology.

Page 3: Krishi Gcr

The Krishidhan Group has a great belief that application of biotechnology can give quantum jump to

productivity and quality of various field and vegetable crops. The Group has a team of highly skilled scientist

involved in innovative research work using cutting edge technologies with focus on high value field and

vegetable crops like cotton, paddy, sunflower, tomato, chilies, brinjal etc. By combining classical conventional

breeding approaches with the state-of-the-art technologies scientists strive to deliver value added quality

products that would ensure higher yields at lower cost to farmer.

Krishidhan Seeds Limited, an agricultural biotech company, engages in the research, production, processing,

packing, and marketing of seeds for the commercial seeds market primarily in India. It offers vegetable seeds,

such as beetroot, okra, bitter gourd, bottle gourd, brinjal, cabbage, carrot, cauliflower, chilly, cluster bean,

coriander, cucumber, French bean, onion, peas, radish, ridge gourd, sweet corn, tomato, and watermelon;

pulses, including mug, tour, and urid; cereals that include sorghum, bajra, maize, and wheat; and oil seeds,

such as castor, mustard, soybean, and sunflower. The company also provides cotton, paddy, and field crop

seeds, as well as crop protection and nutrition products. It serves farmers through a network of distributors

and retailers. Krishidhan Seeds Limited was founded in 1996 and is based in Jalna, India with additional offices

in Indore and Pune, India. It has a subsidiary in the Netherlands.

Server and engaged a technology savvy workforce efficient in handling SAP. He has also maximized

infrastructure for processing, R & D and production to enable KSPL's foray into the global marketplace.

Profile

Krishidhan Seeds is a pioneer and dynamic agricultural biotech company delivering high quality seeds for the

Indian commercial seeds market. Krishidhan is a research-based organization. Its R&D activities and research

stations are recognized by the Department of Scientific and Industrial Research (DSIR), Govt. of India. The

company is actively involved in research, production, processing, packing, and marketing of high quality seeds

of Cotton, Cereals, Pulses, Oil seeds and Vegetables. Recently, it has incorporated a separate legal entity as

Krishidhan Vegetable Seeds India Pvt. Ltd (KVSIPL), a company dedicated exclusively for vegetable seeds

business. Krishidhan is one amongst the first three sub-licensees of M.M.B. India Ltd., which has

commercialized Bollard (BG-I) & Bollard-II (BG-II) cotton hybrids in India. Introduction of other GMOs are on

anvil.

Page 4: Krishi Gcr

Vision

To emerge as one of the biggest technology driven Indian agriculture input company with a significant global

presence and provide access to latest technologies and all required quality agriculture inputs for the social

economic growth of farmers.

Mission

We at Krishidhan Seeds have professional business approach, State-of-art Infrastructure matching the global

research standards to make our products technologically superior and eco-friendly. These superior products,

shall, in turn improve the quality of farmers life and contribute towards their prosperity.

Group of Companies

Krishidhan Seeds ltd.

Krishidhan vegetable seeds india pvt Ltd

SFPL crop life Science Pvt Ltd.

Krishdhan Research Foundation Pvt Ltd.

Rajendra Agri product Pvt ltd.

Krishidhan Europe BV

Head Office: Krishidhan Seeds Pvt. Ltd.,"Krishidhan Bhavan" D3 to D6, Addln.MIDC,Aurangabad Road, JALNA

- 431213 Maharashtra, India.

Corporate Office: Krishidhan Seeds Pvt. Ltd.,7th Floor, Tower-15 / Cybercity / Magarpatta City / Hadapsar

Pune - 411 013 Maharashtra, India.

Registered Office: Krishidhan Seeds Pvt. Ltd.,302, Royal House, 11/3 Usha Ganj INDORE - 452001 Madya

Pradesh, India

Page 5: Krishi Gcr

Board of Director

Mr. Jaynarayan Karwa Chairman

Mr. Sushil Karwa Managing Director

Mr. Mukund Karwa Director

Mr. Pradip Dubhashi Director

Mr. O. G. Attal Director

Mr. M. R. Suresh Executive Director

Mr. Sangeet Shukla Director

Management Member

Mr. Vishnu Karwa Director Infrastructure

Mr. Manish Karwa Director Institutional Business

Mr. Ashish Karwa Director SFPL

Dr. Anup Karwa Director Life Sciences

Dr. G. K. Garg Director Bio. Projects & Reg. Affairs

Dr. V. Sankaran Director TQM

Mr. M. A. Dande Director Cotton Crop Division

Mr. Kamal Somani Director Vegetable Business

Mr. Sharad Lahoti Director SFPL

Mr. Sanjay Khare CFO

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1.1 Infrastructure

Research & Development

The main focus of KSL's research in R&D is to develop need based elite varieties and hybrids that would attract

farmers' attention and benefit them because of high yield and quality as well as provide unique selling points

(USPs) to the marketing division to ensure competitiveness. This department over a period of time got

strength based with following infrastructure: 10 farms with total area of 278 acres in different agro-climatic

zones with identified mandated crops namely.

Zones Area Crops

Ghanewadi, Jalna (MS) 27 acres Cereals and Millets

Pachanwadgaon, Jalna 55 acres Cotton, Pulses and Oilseeds

Anterwali, Jalna 77 acres Breeder Seed Production

Rohanwadi, Jalna 12 acres HXB Cotton

Abohar, Punjab 08 acres North Zone Cotton

Ratlam (MP) 06 acres HXB Cotton

Hyderabad (AP) 36 acres Paddy, Cotton, Maize & Sunflower

Vadu Pune (MS) 33 acres Vegetables

Karnal (Haryana) 06 acres Tropical vegetables and Paddy

Ahmedabad (Gujarat) 18 acres Wheat, Mustard, Bajra and Castor

Table 1.1 Zone wise Agro-climate with crops namely

Production

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Production of genetically pure and good quality pedigree seed is an exacting task. It requires high technical

skills and comparatively heavy financial investment. At Krishidhan, during seed production strict attention is

given to the maintenance of genetic purity and other qualities of seeds in order to pass on maximum benefits

to farmers by introduction of new superior crop plant varieties. Seed production activities at Krishidhan are

carried out under standardized and well-organized conditions assisted by SAP. In India, seed production

program of Krishidhan is spread over 1,00,000 acres of land in the states of Andhra Pradesh, Tamil Nadu,

Maharashtra, Madhya Pradesh, Gujarat, Uttarakhand, Karnataka, and Haryana. Apart from India, Krishidhan

production program is also spread in parts of Europe. KSPL has taken up the exigent task of providing superior

quality seeds of wide range of crops to the farmers within the set time frame. The company recognizes that

this is possible only through Quality Seed Production

Processing

Seeds received from the production fields are often at high moisture content and contain trash and other inert

material, weed seeds, deteriorated and damaged seeds, off-size seeds, etc. At Krishidhan we undertake seed

processing in truly scientific manner. Different processing modules are adapted for different crops and

seasons, meeting stringent quality norms. These steps include specific combination and sequence of pre-

conditioning, drying, pre-cleaning, grading, sizing, color-sorting, treatment, coating, palliating and packing.

Krishidhan Seeds has plants established in India at more than 16 strategic locations. Processing area available

at these plants is over 6, 50,000 Sq.Ft. with total processing capacity of over 85,000 MT per season. Our plants

are equipped with wide range of contemporary processing machinery and equipment suited for seed

separation based on different criteria like size, shape, weight, color and texture. The plants are equipped with

latest machinery of different types like Seed Cleaner & Graders, Gravity Separators, Seed Traitors, automatic

weighing and packing machines. KSPL also has state-of-the-art pollution free cotton delinking plant.

1.2 Technology Center

Page 8: Krishi Gcr

Krishidhan seeds has a wide range of laboratories including Biotech Lab, Plant Molecular Biology Lab, Tissue

Culture Transformation Lab & Entomology Lab, Seed Testing Lab & Quality Analysis Lab. It further has plans to

add Molecular Marker / Genomics Lab & Bio control Agent Lab.

Fig: Technology center of Krishidhan Seeds

•KSPL has the best brains in seed industry to conduct and guide its research. Very senior and eminent

scientists and breeders with vast experience in public sector lead its R&D efforts in different crops. Research in

each crop group is being led by an eminent breeder as Chief R&D. They are guided by VP (R&D) a person of

international repute. KSPL has 8 crop specific research teams which are supported by 51 scientists out of which

26 are Doctorates.

• The diversity of germplasm is the backbone of any crop improvement program. KSPL has about 18,000

entries in its collection in gene bank.

•Knowing the potential of application of Biotechnology in crop improvement the company started its

Biotechnology Division in 2002. The Biotechnology division has now moved to a new facility in the technology

centre (Approximate area: 30,000 sq.ft) with a group of 13 scientists.

•KSPL has also entered into research collaborations with various national & international institutes and

universities benefits of which will be reaped in near future.

1.3 Sales and Support

Page 9: Krishi Gcr

Krishidhan Group has widespread presence across different agro climatic zones in India. The Sales and

Distribution network covers 15 prominent agrarian states in India with a dedicated team of more than 250

Agribusiness professionals. To achieve its vision of improving socio economic status of the Indian Farmer

Krishidhan Group has invested in creating outreach covering more than 1600 distributor with 25000 plus no of

retailers across 30000 villages benefiting more than 600000 farmers Its warehousing space which is

approximately 60000 sq ft is managed by established Carrying and forwarding agents .

Krishidhan Vegetable Seeds India Private Limited

Realizing the potential of vegetable seeds market the vegetable seed

segment was separated from KSL and was vested to a separate new

company was under the name KVSIPL in 2007. This company is headed by an independent director Mr.

Mangesh Kadgaonkar who has more than three decades of experience in the vegetable seed business. The

product portfolio comprise of a vide range of vegetable seeds of 38 crops and on an average four segment per

crop. KVSIPL aims at doubling its business every year and is also exploring exports. In 2009, its research

activities received the recognition of Department of Scientific and Industrial Research, Govt. of India

1.4 Products of Krishidhan Seeds LtdVegetables

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Chapter: 2SWOT Analysis

of Krishidhan Seeds Ltd

Page 13: Krishi Gcr

2: SWOT Analysis of Krishidhan seeds Ltd.

STRENGTHS: Krishidhan seeds have a significant market share in 44 markets covering 31 states. This

geographical diversity helps the business sustain its competitive strengths. With a valuable private label

business, innovative formats and customer service focus, the company can compete against the likes of Wal-

Mart super-centers.

Strong bioengineering capabilities

Strong brand portfolio

Diversified operations

Robust financial growth

WEAKNESSES: Krishidhan Seeds operates 42 manufacturing plants including dairies, bakeries, beverage plants,

and meat plants. Food manufacturing represents a risk of food contamination. A serious contamination can

damage the company's brand and hurt corporate profits.

Lawsuits regarding

Environmental violations

Distributor concentration

OPPORTUNITIES: The expansion of the company in 2007 into the finance market provides a strong future

opportunity.

Emerging market of India

Focus on soybean

Acquisitions to enhance market share.

Proposed launch of new product.

THREATS: A slowing economy with higher levels of inflation affecting the price of food and greater fuel costs

impacting transportation cost, the Krishidhan can have lower profit margins. Cost conscious consumers will

shift their buying habits to less high-end foods and gourmet items (with greater margins) to lower margin

Extensive regulations

Intense competition

Safeguarding the intellectual property rights

Bans on genetically modified crops

Page 14: Krishi Gcr

Chapter: 3Market Opportunities

3: Market Opportunities of Agriculture industry in Burma

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Agriculture an important industry for burma

Agriculture is an important industry that accounts for approximately 30% of the GDP in Myanmar. The country

strives to modernize its agriculture aiming at development of rural areas and alleviation of poverty. Future

increase in demand is expected in fields such as agricultural machinery, materials, seeds and fertilizers. For

Japanese companies which possess advanced agricultural machinery and materials, this means a growing

opportunity for their entry in the Myanmar market.

As Agricultural and farm development remains top priority in Myanmar government's development policy,

Into Myanmar: Agri Trade, Investments & Technology Global Summit 2013 explores the opportunities to tap

into the rich agricultural potential of Myanmar and highlights the emerging investment, production,

agricultural processing & trading opportunities as Myanmar regains its pre-eminence in the global agricultural

community

The agro-based industries are therefore considered as of high potential not only for import substitution but

also for export promotion.

Export Oriented Industry: Resource based Industry, agro based industry, wood based industry , processed

and semi Processed seed food.

3.1 Market Opportunities of Krishidhan Seeds Ltd

Page 16: Krishi Gcr

There are more useful market opportune of Agriculture Base Sector Fruit and vegetable include a variety of

crops, each with their own characteristics and specific requirements. Despite this variety, some trends, and a

large number of forces behind them, appear to apply to the fruit and vegetable seed market. Globally, fruit

and vegetable seed cultivation is one of the fastest growing markets. Hence, this sector has significant usage of

commercial fruit and vegetable seed.

The global fruit & vegetable seed market is segmented into six major crop types, such as Solanaceae, Brassica,

Leafy, Root-Bulb, Cucurbit, and others seed. Solanaceae consists of pepper, eggplant, tomato, and others seed.

Brassica includes cabbage, cauliflower, broccoli, and others seed. Leafy includes lettuce, spinach, and others

seed. Root-Bulb includes onion, carrot, and others seed. Cucurbit includes melon, watermelon, cucumber,

squash, and others seed. Beans and corn seed are included under others seed. The Solanaceae seed market is

considered to be the largest segment of the fruit & vegetable seed market. Fruit and vegetable certified seeds

can improve the return on investment and increase per unit seed production.

Production of genetically pure and good quality pedigree seed is an exacting task. It requires high

technical skills and comparatively heavy financial investment.

At Krishidhan, during seed production strict attention is given to the maintenance of genetic purity and

other qualities of seeds in order to pass on maximum benefits to farmers by introduction of new

superior crop plant varieties.

Seed production activities at Krishidhan are carried out under standardized and well-organized

conditions assisted by SAP.

In India, seed production program of Krishidhan is spread over 1,00,000 acres of land in the states of

Andhra Pradesh, Tamil Nadu, Maharashtra, Madhya Pradesh, Gujarat, Uttarakhand, Karnataka, and

Haryana. Apart from India, Krishidhan production program is also spread in parts of Burma (Myanmar).

KSPL has taken up the exigent task of providing superior quality seeds of wide range of crops to the

farmers within the set time frame.

The company recognizes that this is possible only through Quality Seed Production.

3.2 Import and Export of Krishidhan ltd in Burma

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India-Myanmar relations are very rooted in shared historical, ethnic, cultural and religious ties. As the land of

Lord Buddha, India is a country of pilgrimage for the people of Myanmar .India and Myanmar relations have

stood the test of time. The geographical proximity of the two countries has helped develop and sustain cordial

relations and facilitated people-to people contact. India and Myanmar share a long land border of over 1600

km and a maritime boundary in the Bay of Bengal. A large population of Indian origin (according to some

estimates about 2.5 million) lives in Myanmar. India and Myanmar signed a Treaty of Friendship in 1951. The

visit of the Prime Minister Rajiv Gandhi in 1987 laid the foundations for a stronger relationship between India

and Myanmar.

Krishidhan has made a lot of progress in agriculture in terms of growth in output are follows a seeds , yields

and area under crops. It has gone through a Green Revolution (food grains), a White Revolution (milk), a

Yellow Revolution (oilseeds) and a Blue Revolution (aquaculture). Krishidhan is one of the largest producers of

importuning another state or country that is fruits, cashew nuts, coconuts and tea are importing. It is also

well known for the production of Exporting are wheat, vegetables, sugar, fish, tobacco and rice to be exporting

in Burma (Myanmar).

Certain types of agriculture such as horticulture, organic farming, floriculture, genetic engineering, packaging

and food processing have the potential to see a surge in revenues through exports. Over the past few years,

the government has stressed on the development of horticulture and floriculture by creating vital

infrastructure for cold storage, refrigerated transportation, packaging, processing and quality control. If India

wishes to optimize the production and export potential of these commodities, then it is essential to improve

these facilities, marketing and export networks much further.

Table no 3.2 India- Myanmar Bilateral Trade (US$ million)

Year India’s Export India’s Import Total Trade Balance2006-07 139.95 781.93 921.19 (-)641.982007-08 185.43 809.95 995.37 (-)624.512008-09 221.64 928.97 1150.61 (-)707.332009-10 207.97 1289.8 1497.77 (-)1081.832010-11 194.75 876.13 1070.88 (-)681.382011-12(Apr-Dec)

217.65 763.32 814.16 (-)545.67

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HY. OKRA : ANJALI

Duration: First picking starts after 45-48 days

Height: Medium Plant height of 5 feet

Fruiting Body: Short internodes 6 cm each, length 9-10 cms, Dark green fruit

Decease Resistant: Intermediate tolerant to YVMV

Yield: Heavy yielder.

Other Important Characteristics: Easy for picking

Product: Imported.

HY. BRINJAL: GREEN BEAUTY

Duration: First picking starts after 55-60 days of transplanting. Height: 3.25 to 3.5 feet

Fruiting Body: Oval- Green with white color strips.

Yield: Heavy yielder

Other Important Characteristics: Fruits spineless with Cluster bearing

Product: Exported.

HY. CABBAGE : SOURAV

Duration: Maturity 60 to 65 days of transplanting

Height: Bluish Green & Globe shape

Fruiting Body: 1.4 to 1.5 kg

Decease Resistant : Moderate, tolerant to black rot

Yield: Heavy yielder

Other Important Characteristics: Very compact head, good field holding, suitable for long transportation

Product: Exported.

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HY. BITTER GOURD : NIKITA

Duration: First picking after 55 to 60 days of sowing

Height: Vigorous Vine grows up to 12 to 15 feet

Fruiting Body: Fruit wt. 85 to 100 gms, Spindle shape fruit,dark green color with sharp & firm prickles

Decease Resistant : Moderately tolerance to Powdery and Downy Mildew

Yield: Heavy yielder

Other Important Characteristics: For long distance transportation

Product: Exported.

HY. CHILLI : ASHWINI

Duration: First picking after 60 to 65 days of transplanting

Height: 4 to 4.5 feet

Fruiting Body: Fruits are straight, thin, short and slightly wrinkled, Fruits are dark green in color and turns

dark red after maturity, Fruits are 10 to 12 cms in length with girth 1.0 to 1.1 cms, Fruits are highly pungent

Decease Resistant : Heavy yielder

Yield: Plant growth habit is erect and spreading, Farmer

Other Important Characteristics: preference is more towards red dry fruits because of its good dark red color

and longer retention of color. Due to more number of seeds per fruit this variety is good for long

transportation

Product: Exported.

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3.2.1 Krishidhan Seeds Ltd Imports from Myanmar

Commodity 2008-09 2009-10 2010-111 Pulses and beans 611.78 851.53 570.822 Wood & Articles of wood 311.01 404.95 419.163 Products of Animal Origin 2.93 6.22 12.324 Others 2.34 7.19 7.885 Raw Hides & Skin 2.05 4.556 Coffee, Tea, mate & spices 0.91 3.07 2.94

Total Imports 928.97 1289.8 1017.67

3.2.2 Krishidhan Seeds Ltd Exports to Myanmar

Sr. No.

Commodity 2008-09 2009-10 2010-11 2011-12

1 Others 94.17 79.85 111.4 110.122 Meat & Edible Meat Offal - 1.91 71.59 13.313 Pharmaceuticals 49.92 55.98 61.29 76.094 Iron & Steel 63.93 43.66 40.21 26.295 Sugar & Sugar Confectionery - 0.07 21.27 -6 Electrical Machinery & Equipment 13.62 16.69 16.39 26.817 Chemicals & allied products - 9.81 12.27 5.48 Oil well & Mining Equipment - - - 75.88

Total Exports 221.64 207.97 334.42 333.9

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EXPORT / IMPORT Rules and Regulations

Export / Import Licensing System

Law Governing Licensing

The main law governing the authorization of licensing is contained in the Control of Imports and Exports

( Temporary ) Act, 1947, which has been amended when necessary and which is still in force. This law is

administered by the Ministry of Commerce which, from time to time, issues necessary orders, notification,

directives, pertaining to all export / import matters including issuance of licenses and permits as well.

Licensing Authority

The authority to issue export / import licenses and permits is delegated to Directorate of Trade and

Department of Border Trade under the Ministry of Commerce. Directorate of Trade is authorized to issue

export / import licenses and permits for export / import by overseas. Department of Border Trade is

authorized to issue export / import licenses for cross border trade.

Registration

All private business enterprises, both local and foreign, co – operative societies, joint – venture organizations,

desirous of carrying on export / import business are required to apply to the Directorate of Trade for

registration as exporter / importer.

Registration of Exporter/Importer

1. Registration

The following individual/enterprises desirous of carrying on export/import business may apply to the,

Directorate of Trade for registration as exporter/importer:

• A citizen or associate citizen or naturalized citizen

• Partnership firms

• Limited companies inclusive of foreign companies or Societies Law

2. Term of registration, registration fee and extension fee

The Term of registration and registration fee and extension fee for exporter/importer is as follows:

• Terms of registration 1 year,2 years or 3 years

• Registration fee or extension fee for one year Kyat’s 15,000/-

• Registration or extension fee for three years Kyat’s 30,000/-

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3. Certificate of registration

Effective from 1.4.94, the Directorate of Trade issued new form of certificate of registration as appended.

4. Amendment of certificate

Alteration, addition or amendment is allowed upon payment of Kyat’s 300 per entry.

5. Period of extension

Registered exporter/importer shall, at the expiry of the term of registration, either one or two or three years

as the case may be, apply for extension.

6. Application for extension of certificate

(A) Application shall be made prior to expiry of the term of registration;

(B) If applied after the expiration, the following penalty shall be paid in addition to the relevant extension fee:

• within one month from the expiry- Kyat’s 500/-

• Within two months from the expiry- Kyat’s 1000/-

• Within three months from the expiry- Kyat’s 1500/-

7. Surrender of certificate of registration

Exporter/importer not desirous of continuing business may surrender the certificate of registration.

8. Cancellation of registration

As mentioned earlier in Para 5, the exporter/importer shall, at the expiry of registration, apply for extension.

The registration will be cancelled if he fails to apply for extension after three months from the date of expiry.

9. Issuance of duplicate copy of certificate of registration and identity card

The exporter/importer has the right to apply for the issuance of duplicate copy of certificate of registration or

identity card issued to him by the directorate of Trade upon payment of Kyat’s 300/- as service charges.

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10. Rights of the registered exporter/importer

The followings are the rights of registered exporter/importer:

To export all products in accordance with the prescribed rules and regulations except for those which

are prohibited by the State and the products, prescribed to be solely undertaken by the State-owned.

To import all products in accordance with the prescribed rules and regulations, with the foreign

exchange (earned on export) or by using any other.

To do border trade business in accordance with the prescribe rules and regulations but registered

exporter/importer should not be a foreign firm.

To apply for issuance of business pass-port.

To receive the foreign guest for business negotiation.

Export / Import licenses

Generally every export / import by private business enterprises and State Enterprises are subject to

export / import license / permit issued by the licensing authorities concerned. The validity of export /

import license / permit issued by the Directorate of Trade is normally six months from the date of

issue, and can be extended for three months period at a time.

Items allowed for Export

Normally, the registered exporter / importer has the right to export all commodities, except for rice

and rice products and other products which are prescribed to be solely exportable by the State –

owned Economic Enterprises. 30 / 31 items including Teak, rice, etc.

Items allowed for Import

Policy pronouncement as to import include, inter alia, to cater the basic needs of the country’s

economic sectors, namely, agriculture, livestock breeding, fishery, forestry, transportation,

manufacturing, mining and so on, while the consumer choices can be fulfilled equally at the same time.

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These are reflected in the classification of import items which are now divided into two categories : -

(1) Priority items (A)

– which include machinery and spare parts, agricultural machinery and farm implements, fertilizers,

pesticides, high yield quality seeds, edible oil, oil and industrial raw materials, construction stores and

building materials .

(2) Priority items (B)

–About sixty items grouped under personal goods, household goods, foodstuff, construction materials,

textile products, electric and electronic products and general products.

The private importer is required to import 80 % priority (A) items if he wishes to import priority (B)

items. He could also import 20 % priority (B) items, together with priority (A) items and ship them at

the same time. Generally no quota or ceiling is fixed for imported items so long as the requirement to

import the prescribed amount of priority items is fulfilled, with the exception of edible oil.

Products allowed for Import which is excluded from Prohibited items, restricted items and Priority items.

Some commodities, which are not in the list of prohibited items, restricted items, and priority items are

allowed to import as in the list of Priority (B) within the right of 20 % ratio for import.

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3.2.1 Import Procedure

Imports to India are governed by the Foreign Trade (Development and Regulation) Act 1992. Under this Act,

imports of all goods are free except for the items regulated by the policy or any other law in force. The

present, foreign trade arrangements for different commodities are stated in the EXIM Policy of 2004-2009.

This policy is announced once every five years with annual supplements coming out every year. It is also

known as the Foreign Trade Policy or Export Import Policy. Registration with a regional licensing authority is a

precondition for the import of goods. Customs officials will not permit clearance of goods unless the importer

gets an Import Export Code (IEC) number from the regional licensing authority.

Import Procedure for Livestock Products

Livestock products include meat and meat products of different types that comprise fresh, chilled and frozen

meat as well as tissue or organs of poultry, pig, sheep and goat. It also consists of egg and egg powder; milk

and milk goods; pet foods of animal origin and embryos, ova or semen of cows, sheep and goats. No livestock

product may be imported into India without a valid sanitary import permit. All livestock products with valid

sanitary import permits may be brought into India only through seaports or airports where Animal Quarantine

and Certification Services Stations are situated. These stations are located in the cities of Delhi, Mumbai,

Kolkata and Chennai.

Import Procedure for the Fisheries Sector

License under EXIM policy is not required for the import of 125 species/groups of fish, crustaceans, molluscs

and other aquatic invertebrates covered under FREE policy under the EXIM policy. Import of five groups of live

fish is permitted under Restricted Policy. Import of Whale Shark (Rhincodon types) and parts and products of

the species is restricted.

3.2.2 Export Procedure

Page 26: Krishi Gcr

A successful exporter should thoroughly research the markets. The fewer intermediaries a person has the

better as every intermediary needs a percentage for his share in his business. This leads to fewer profits. The

first thing you need to do is set up a business organization depending on your export needs. If you decide to

incorporate a private limited company, then you have to register the same with the Registrar of Companies.

There are two types of exporters - merchant exporters who buy goods from the market or from manufacturers

and sell them to foreign buyers and a manufacturer exporter who manufactures the goods he exports.

The second thing you need to do is to open a current account in the name of the organization in whose name

you intend to export, at a bank that is authorized to deal in foreign exchange. Carefully select the products you

wish to export and study current export trends. Also, find out about the import regulations of the commodity

in the importing countries. Send export letters to targeted companies with information about your company,

product, pricing and other services offered. Negotiate with buyers for a good deal. Once an export order is

received it must be processed and a contract that lists item specifications, payment conditions, marketing

requirements, arbitration, shipping and insurance must be drawn out.

Exporters face risks such as credit risk, currency risk, carriage risk and country risk. These can be countered

through steps like insisting upon an irrevocable letter of credit from the overseas buyer and taking out a

marine insurance policy. All exporters have to register with a regional licensing authority that provides them

with an Import Export Code (IEC) number. To get benefits and concessions under the export-import policy,

exporters should register with an appropriate export promotion agency by obtaining a registration-cum-

membership certificate. Goods that are exported are eligible for exemption from both Sales Tax and Central

Sales Tax. For this purpose, you should get yourself registered with the Sales Tax Authority of your State.

3.3 Trade Investment of Krishidhan Seeds Ltd in Burma

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Bilateral & Economic Relations

India and Myanmar enjoy cordial relations; and the geographical proximity has facilitated the long-standing

trade relations across the land and sea routes. Myanmar has been a major trading partner of India. India

Myanmar Trade has immense potential. Since the signing of India and Myanmar trade agreement in 1970 the

bilateral trade has been growing steadily with slight decline in the 80's. The bilateral trade doubled in 2005-

06(US$569 million) and further claimed up to US$ 1.87 billion in 2011-12. Now India is the fourth largest trade

partner of Myanmar (3rd largest export destination for Myanmar and 5th largest source of imports into

Myanmar). However, the actual trade between India and Myanmar is difficult to fathom due to trade via third

country (Singapore), unaccounted unofficial trade across borders and inadequate availability of data.

Table no: 3.3 Trends of bilateral Border Trade

Year Myanmar exports Myanmar Imports Total trade Balance of Trade2005-2006 11.28 4.13 15.41 7.142006-2007 11.02 4.75 15.77 6.272007-2008 10.91 3.92 14.83 6.992008-2009 5.49 4.43 9.82 1.052009-2010 7.79 5.95 13.73 1.842010-2011 8.30 4.50 12.80 3.802011-2012 8.87 6.54 15.41> 2.332012-2013 25.09 10.57 35.66 14.52

Major exports into Myanmar: teak and hardwood, pulses and beans, marine products, garments, metals and

ores, and various other agricultural products.

Major imports from Myanmar: Betel nut dried ginger, green mug beans, black matpe , turmeric roots, resin

and medicinal herbs.

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3.4 Foreign direct investment (FDI)

India has jumped to the tenth largest investor from its thirteenth position an approved investment of US$ 273

million out of total estimated investment of US$ 41.4 billion from 32 countries in 529 projects, as of December

2012.

New Foreign Investment Law has been passed by the Myanmar Government on November 02, 2012 and the

by-laws and rules are framed by the respective departments/ministries. 100 % FDI is allowed. The

controversial clause of requiring US$5 million minimum investment has been dropped. It also increases the

maximum shareholding of foreign parties to 50 percent in certain sensitive sectors, including manufacturing,

farming, agriculture and fisheries. Myanmar new investment law allows foreign investors to lease land for an

initial period of 50 years with an option to renew. Foreign companies will be entitled to tax exemption for first

five years and no-tariff on raw materials and allowed to exchange and transfer investment.

India and Myanmar have signed Bilateral Investment Promotion Agreement (BIPA), Double Taxation Avoidance

Agreement (DTAA). These agreements provide e entrepreneurs from India and Myanmar for free flow of

bilateral investments and business profits will only be taxable in the source State. Both the agreements have

been ratified by India and Myanmar. Attempts by Governments of India and Myanmar to enter into a G-2-G

Agreement for trading of pulses (black matpe, lemon toor and urad) have not succeeded. In 2008 United Bank

of India signed three banking agreements with banks of Myanmar (MFTB, MICB and MEB) in order to facilitate

trade between the two countries.

With Myanmar taking promising steps towards becoming a market economy and opening up for investment,

Indian business community has also stepped up its activity in Myanmar. Business delegations have been

visiting Myanmar regularly and a number of business events are taking place in Myanmar. Major contracts

won by Indian companies: Jubilant Energy India- PSC-1 onshore bloc , Punj Lloyd, Jindal Saw, Wels pun India,

Vihaan Networks Ltd (VNL) India , Nipha Exports and Troika Exports, L&T

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3.5 Krishidhan Seeds Ltd Trade Investment in Agriculture Sector of Burma:

Myanmar is well known as agro-based country. Being rich in land resources and different networks of

irrigation facilities. Myanmar grows not only perennial plants but also crops such as rice, pulses and beans,

maize, sesame, fruits and vegetables and exports those products to international markets.

Myanmar welcomes investments in producing value-added agricultural products and processed foods. There is

vast potential for investors in Agricultural Sector.

Federation of Indian Export Organisations (FIEO) organized an ‘India Show’ by Krishidhan Pvt Ltd in

Yangon from September 3-7, 2012. The ‘India Show’ consisted of a Buyer-Seller Meet and display of

Indian products. The 30 member delegation mounted by FIEO had representatives from various sectors

including solar energy, telecom, textiles, engineering goods, handloom and handicrafts, jute products,

hardware, hand tools, spices, garments, artificial jewellery and incense products.

A delegation each from Export-Import Bank (EXIM) and Reserve Bank of India (RBI)visited Myanmar in

August and September, 2012 respectively visited Myanmar to discuss mutual cooperation in banking

sector.

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Chapter: 4Potential

Business Opportunity

4.1 Doing Business in Burma

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Burma is going through a period of major political, economic, and social reform. Foreign investors from around

the globe are seeking to enter a market that has been largely isolated from the world economy for over two

decades. Until 2012 Burma was virtually off limits to U.S. companies due to U.S. sanctions against Burma

including bans on investment, the importation of Burmese products into the U.S. and the export of financial

services from the U.S. to Burma. Although non-financial U.S. exports to Burma were permitted, very little trade

flowed in that direction due to the reputational risk involved in doing business in a country ruled by an

oppressive military junta.

In March 2011, Burma’s military government transitioned to a nominally civilian one and initiated a series of

small but significant democratic reforms which led to Secretary of State Hillary Clinton’s visit in November

2011, the first visit of a U.S. Secretary of State in more than 50 years. In April 2012, the government held a

parliamentary by-election that was considered largely free and fair by the international community. In the by-

election, the opposition National League of Democracy (NLD) party won 43 out of the 45 seats contested or

approximately seven percent of all seats in parliament. Aung San Suu Kyi, Nobel Peace Prize winner and head

of the NLD, became a member of parliament for the first time. The Parliament is dominated by the ruling

Union Solidarity and Development Party (USDP), and both the upper and lower houses of Parliament have 25%

of their seats reserved for the military.

On January 13, 2012, Secretary of State Hillary Clinton announced that the U.S. would appoint an Ambassador

to Burma for the first time since 1990. In May 2012, she announced that the U.S. would ease certain financial

and investment sanctions on Burma in response to the historic reforms taking place in the country. On July 11,

2012, the Department of Treasury issued two general licenses which allow new U.S. investment in Burma as

well as authorize the exportation of financial services to Burma. On the same day, Ambassador Derek Mitchell

took up his post in Rangoon. Shortly before President Barack Obama’s historic visit to Burma in November

2012, the Administration further eased sanctions by allowing Burmese exports to the U.S., with the exception

of rubies and jadeite. On the occasion of Burmese President Thein Sein’s visit to Washington, D.C. in May

2013, the U.S. and Burma signed a Trade and Investment Framework Agreement (TIFA) to promote dialogue

and cooperation on trade and investment issues. The easing of sanctions is part of a broader effort to help

accelerate broad-based economic growth and recognize and encourage continued political and economic

reform.

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Some U.S. economic sanctions remain in place, including restrictions on doing business with the military or

individuals or companies on the Specially Designated Nationals (SDN) list, which is compiled and maintained by

the U.S. Treasury Office of Foreign Assets Control (OFAC).

In addition to political reforms, the Government of Burma (GOB) has begun to implement more open market

policies. In April 2012, it abandoned a fixed exchange regime in favor of a managed currency float. In

November 2012, it approved a new Foreign Investment Law (FIL) to encourage more foreign investment,

including by offering incentives to foreign companies. Between March and May 2013, it removed trade license

requirements on the import and export of over 600 products. More tariff reforms are expected as Burma

prepares for ASEAN free trade integration in 2015. In addition, the GOB approved legislation in July 2013 that

provides for the Central Bank of Myanmar’s (CBM) autonomy in setting and managing monetary policy.

Nevertheless, poor policymaking, lack of rule of law, a heretofore stunted banking system, inadequate

infrastructure, and a weak education system hold back economic growth in Burma. Political intervention,

corruption, and centralized state control continue to hamper investment in some economic sectors. Although

the GOB has undertaken important macroeconomic reforms, detailed information on new legislation or

implementing regulations is opaque and often unavailable. The government controls extractive industries,

sources of capital, educational institutions, movement of labor, and access to official information. The

country’s abundant natural resources have kept production in the extractive sectors on a generally upward

path, though far below potential. Production in historically strong sectors such as agriculture, fisheries, and

forestry has been flat or declining due to a combination of underinvestment, low productivity, restrictive

government policies, and poor macroeconomic conditions.

Burma is largely an agricultural economy. Agriculture, livestock, fisheries, and forestry account for 40-50

percent of GDP, and around 70 percent of Burma’s population relies on these sectors for their livelihoods.

Beans and pulses, rice, timber, and marine products are the primary agricultural exports. Burma's mining, oil

and gas, and energy sectors also supply significant exports, though revenues are opaque. The manufacturing

and service sectors remain undeveloped. The informal economy is very large and includes activities from

currency trading to education to commodity trade. Unrecorded border trade is very common along all of

Burma’s borders. According to unofficial reports, the most commonly smuggled exports are illicit narcotics,

gems and jade, and timber; the most common smuggled imports are consumer goods, medicines, vehicles and

vehicle parts, electronics, fertilizer, and diesel fuel.

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Growth is picking up in Burma. The IMF estimated 6.5 percent GDP growth in 2012-13 with a forecast of 6.75

percent growth in 2013 -14, driven largely by commodity exports and foreign investment. According to

Burma's Central Statistical Organization (CSO), Burma ran a trade surplus in 2011- 2012 of $810 million. The

largest export by value was natural gas (from two offshore foreign-operated production sites), followed by

teak and hardwood, pulses and beans, marine products, garments, metals and ores, and various other

agricultural products.

Burma’s major trading partners are Thailand, Singapore, China, India, Malaysia, Japan, and South Korea. In

2012, the United States exported $67.8 million worth of products to Burma, a 39 percent increase from 2011.

Major U.S. exports to Burma were electrical machinery, cereals, optical and medical instruments, vehicles, and

other machinery and miscellaneous items. The U.S. did not import any products from Burma in 2012 due to

import sanctions which were relaxed in November that year. In the first four months of 2013, imports from

Burma rose to $3.7 million.

As Mentioned above seeking the market opportunities in Burma for Krishidhan Seeds Ltd in respect of Export,

Import and Trade Investment, it is being conclude that it would be rather preferable for Krishidhan Seeds Ltd

to opt export in Burma ,then do import and Trade investment

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Chapter: 5Policy and Norms

Of India and Burma

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Policy and Norms of India

India Agricultural Policy Review

5.1 Introduction

With a population of about 1.1 billion, India is expected to overtake China as the world’s most

populous country by 2030. India’s economy ranks as Asia’s third largest, after Japan and China, and is

now one of the world’s fastest growing.

While growth has led to significant reductions in poverty, India still ranks among the world’s low

income countries in terms of income per capita.

Nevertheless, economic growth has resulted in a burgeoning middle-class.

India’s agriculture sector accounts for 18% of GDP, and employs around 60% of the workforce.

Rice, wheat, cotton, oilseeds, jute, tea, sugarcane, milk and potatoes are India’s major agricultural

commodities. With its growing urban middle-class and increasing influence in global affairs, India’s

policies have important implications not only for its own economic development but also for global

agricultural markets and trade.

This note first reviews India’s macro reforms, followed by discussion of the competitiveness of Indian

agriculture.

The evolution of India’s major agricultural policies is then described, and new policy directions and

emerging challenges are discussed.

The note closes with some of the prospects for India’s agrifood sector and the implications for Canada

India’s Macroeconomic Reforms Following its independence in 1947, India pursued a centrally directed,

inward-oriented development strategy.

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This strategy emphasized self-sufficiency and import replacement through large-scale public

intervention in industrial production, price setting and foreign trade.

Sub-par economic performance from the 1950s to the 1970s led to a strategy of higher public spending

in the 1980s in an effort to attain higher economic growth.

However, higher public spending in the 1980s resulted in rising fiscal deficits and, eventually, to a

balance of payment crisis in the early 1990s.

Following the balance of payment crisis, India implemented extensive economic and structural reforms.

Key reform elements included adopting a floating exchange rate regime, relaxing foreign direct

investment rules, and relaxing export and import controls.

Since these reforms were undertaken, India’s GDP growth has exceeded 6 percent per annum.

India’s Agrifood Competitiveness India has the world’s second largest arable land base (after the U.S.)

and the second largest irrigated area (after China).

India’s per capita arable land is roughly comparable to that of Italy or Germany (Figure 1). Further,

much of the land in India can be double cropped.

Given these resource endowments, the World Bank indicates that India could be as competitive as

Thailand.

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5.1.1 India Exim Policy - Foreign Trade Policy

Exim Policy or Foreign Trade Policy is a set of guidelines and instructions established by the DGFT in matters

related to the import and export of goods in India.

The Foreign Trade Policy of India is guided by the Export Import in known as in short EXIM Policy of the Indian

Government and is regulated by the Foreign Trade Development and Regulation Act, 1992. DGFT (Directorate

General of Foreign Trade) is the main governing body in matters related to Exim Policy. The main objective of

the Foreign Trade (Development and Regulation) Act is to provide the development and regulation of foreign

trade by facilitating imports into, and augmenting exports from India. Foreign Trade Act has replaced the

earlier law known as the imports and Exports (Control) Act 1947.

EXIM Policy

Indian EXIM Policy contains various policy related decisions taken by the government in the sphere of Foreign

Trade, i.e., with respect to imports and exports from the country and more especially Export promotion

measures, policies and procedures related thereto. Trade Policy is prepared and announced by the Central

Government (Ministry of Commerce). India's Export Import Policy also know as Foreign Trade Policy, in

general, aims at developing export potential, improving export performance, encouraging foreign trade and

creating favorable balance of payments position.

History of Exim Policy of India

In the year 1962, the Government of India appointed a special

Exim Policy Committee to review the government previous export import policies. The committee was later on

approved by the Government of India. Mr. V. P. Singh, the then Commerce Minister and announced the Exim

Policy on the 12th of April, 1985. Initially the EXIM Policy was introduced for the period of three years with

main objective to boost the export business in India

Exim Policy Documents

The Exim Policy of India has been described in the following documents

5.1.2 Interim New Exim Policy 2009 - 2010

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Exim Policy: 2004- 2009

Handbook of Procedures Volume I

Handbook of Procedures Volume II

ITC(HS) Classification of Export- Import Items

The major information in matters related to export and import is given in the document named "Exim Policy

2002-2007".

An exporter uses the Handbook of Procedures Volume-I to know the procedures, the agencies and the

documentation required to take advantage of a certain provisions of the Indian EXIM Policy. For example, if an

exporter or importer finds out that paragraph 6.6 of the

Exim Policy is important for his export business then the exporter must also check out the same paragraph in

the Handbook of Procedures Volume- I for further details.

The Handbook of Procedures Volume-II provides very crucial information in matters related to the Standard

Input-Output Norms (SION). Such Input output norms are applicable for the products such as electronics,

engineering, chemical, food products including fish and marine products, handicraft, plastic and leather

products etc. Based on SION, exporters are provided the facility to make duty-free import of inputs required

for manufacture of export products under the Duty Exemption Scheme or Duty Remission Scheme.

The Export Import Policy regarding import or export of a specific item is given in the ITC- HS Codes or better

known as Indian Trade Clarification Code based on Harmonized System of Coding was adopted in India for

import-export operations. Indian Custom uses an eight digit ITC-HS Codes to suit the national trade

requirements. ITC-HS codes are divided into two schedules.

Schedule I describe the rules and exim guidelines related to import policies where as Export Policy Schedule II

describe the rules and regulation related to export policies. Schedule I of the ITC-HS code is divided into 21

sections and each section is further divided into chapters. The total number of chapters in the schedule I is 98.

The chapters are further divided into sub-heading under which different HS codes are mentioned.

ITC (Hs) Schedule II of the code contain 97 chapters giving all the details about the Export Import Guidelines

related to the export policies.

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Objectives of the Exim Policy: -

Government control import of non-essential items through the EXIM Policy. At the same time, all-out efforts

are made to promote exports. Thus, there are two aspects of Exim Policy; the import policy which is concerned

with regulation and management of imports and the export policy which is concerned with exports not only

promotion but also regulation. The main objective of the Government's EXIM Policy is to promote exports to

the maximum extent. Exports should be promoted in such a manner that the economy of the country is not

affected by unregulated exportable items specially needed within the country. Export control is, therefore,

exercised in respect of a limited number of items whose supply position demands that their exports should be

regulated in the larger interests of the country. In other words, the main objective of the Exim Policy is:

To accelerate the economy from low level of economic activities to high level of economic activities

by making it a globally oriented vibrant economy and to derive maximum benefits from expanding

global market opportunities.

To stimulate sustained economic growth by providing access to essential raw materials,

intermediates, components,' consumables and capital goods required for augmenting production.

To enhance the techno local strength and efficiency of Indian agriculture, industry and services,

thereby, improving their competitiveness.

To generate new employment.

Opportunities and encourage the attainment of internationally accepted standards of quality.

To provide quality consumer products at reasonable prices.

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Highlights of the Exim Policy 1997-2002

1. Period of the Exim Policy

• This policy is valid for five years instead of three years as in the case of earlier policies. It is effective from 1st

April 1997 to 31st March 2002.

2. Liberalization

• A very important feature of the policy is liberalization.

• It has substantially eliminated licensing, quantitative restrictions and other regulatory and discretionary

controls. All goods, except those coming under negative list, may be freely imported or exported.

3. Imports Liberalization

• Of 542 items from the restricted list 150 items have been transferred to Special Import Licence (SIL) list and

remaining 392 items have been transferred to Open General Licence (OGL) List.

4. Export Promotion Capital Goods (EPCG) Scheme

• The duty on imported capital goods under

EPCG Scheme has been reduced from 15% to 10%.

• Under the zero duty EPCG Scheme, the threshold limit has been reduced from Rs. 20 crore to Rs. 5 crore for

agricultural and allied Sectors.

5. Advance License Scheme

• Under Advance License Scheme, the period for export obligation has been extended from 12 months to 18

months.

• A further extension for six months can be given on payment of 1 % of the value of unfulfilled exports.

6. Duty Entitlement Pass Book (DEPB) Scheme

• Under the DEPB

Scheme an exporter may apply for credit, as a specified percentage of FOB value of exports, made in freely

convertible currency.

• Such credit can be can be utilized for import of raw materials, intermediates, components, parts, packaging

materials, etc. for export purpose.

Impact of Exim Policy 1997 –2002

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(a) Globalization of Indian Economy:

The Exim Policy 1997-02 proposed with an aim to prepare a framework for globalizations of Indian economy.

This is evident from the very first objective of the policy, which states. "To accelerate the economy from low

level of economic activities to- high level of economic activities by making it a globally oriented vibrant

economy and to derive maximum benefits from expanding global market opportunities."

(b) Impact on the Indian Industry:

In the EXIM policy 1997-02, a series of reform measures have been introduced in order to give boost to India's

industrial growth and generate employment opportunities in non-agricultural sector. These include the

reduction of duty from 15% to 10% under EPCG scheme that enables Indian firms to import capital goods and

is an important step in improving the quality and productivity of the Indian industry.

(c) Impact on Agriculture:

Many encouraging steps have been taken in the Exim Policy 1997-2002 in order to give a boost to Indian

agricultural sector. These steps includes provision of additional SIL of 1 % for export of agro products, allowing

EOU’s and other units in EPZs in agriculture sectors to 50% of their output in the domestic tariff area (DTA) on

payment of duty.

(d) Impact on Foreign Investment.

In order to encourage foreign investment in India, the Exim Policy 1997-02 has permitted 100% foreign equity

participation in the case of 100% EOUs, and units set up in EPZs.

(e) Impact on Quality up gradation:

The SIL entitlement of exporters holding ISO 9000 certification has been increased from 2% to 5% of the FOB

value of exports, which has encouraged Indian industries to undertake research and development

programmers and upgrade the quality of their products.

(f) Impact on Self-Reliance:-

The Exim Policy 1997-2002 successfully fulfills one of the India’s long terms objective of Self-reliance. The Exim

Policy has achieved this by encouraging domestic sourcing of raw materials, in order to build up a strong

domestic production base. New incentives added in the Exim Policy have also added benefits to the exporters.

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Policy and norms of Burma

Investment Strategy and norms by Burma:

5.2 INTRODUCTION

Before 1988, agricultural policy of Myanmar could be depicted as rigid and controlled and subsidized

policy that highly emphasized on domestic food security and stability of price. After the economic

transition from planned economic system to market-oriented economic system in 1988, agricultural

policies of Myanmar pay attention on boosting production and promotion of agricultural exports.

The Government considers agriculture "as the base for all-round development of other   economic

sectors". The three major objectives of the agriculture sector are:

(i) To achieve  surplus in paddy production;

(ii) To achieve self-sufficiency in edible oil; and

(iii) To step up the  production and export of pulses and industrial crops.

At the same time, within the context of   market-oriented economic system, freedom in agricultural

production and participation of  private sector has become the major policies in the agriculture sector. 

Myanmar is traditionally an agricultural country and agriculture sector remains as a major  contributor

to GDP, and its share of export earnings is about 40%. At the same time, agriculture   sector provides

employment to more than 60 per cent of work force. In addition, food security   for the people and

raw material production for domestic agro-based industries are heavily  dependent on the agricultural

sector.

Myanmar set up the millennium development goals targeting 2015 and significant progress has been

achieved in various sectors including agriculture. Major issues on the future development of agriculture

sector are regional food security, extension of agricultural land, enhancing participation of private

entrepreneurs in agricultural activities, income generation activities through introducing new crops,

and encouraging farmers to cultivate environmental friendly crops.

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5.2.1 Recent and Proposed Changes in Statistical Organizations Related to Food and

Agriculture

Statistics Law

Concerning with the statistical activities for agriculture and non-agriculture sectors, the government of

Myanmar has laid down the Central Statistical Authority Act of Myanmar: 1952 for backing up the activities of

statistics with the legal support. The statistical act of Myanmar has been applying for all statistical activities

including agricultural statistical activities.

Major Agricultural Statistical Agencies

There are several statistics agencies for collecting, compiling and disseminating of economic and social

statistics in Myanmar. Some major statistics agencies related to the agriculture sector of Myanmar are as

follows:

Settlement and Land Records Department (SLRD)

Settlement and Land Records Department (SLRD) is sole government department taking highest responsibility

for collecting, compiling and disseminating agricultural statistics, particularly for production statistics, such as

planted area, harvested area, yield and production of crops, in Myanmar.

Another important task of SLRD is conducting agricultural censuses. Since Myanmar gained its independence in

1948, three agricultural censuses ( 1952, 1993 and 2003) have been conducted by the SLRD and now preparing

to conduct 2010 agricultural census.

Central Statistical Organization (CSO)

Central Statistical Organization (CSO) under the Ministry of National Planning and Economic Development, is a

sole national statistics organization which mainly emphasized on economic and social statistics of Myanmar.

The CSO compiles various data from both public and private sectors. CSO obtains those data as administrative

records of the concerned departments.

Moreover, some of the data and information compiled in the CSO were obtained from the sample surveys.

CSO collaborates with the SLRD for the agricultural production and land use statistics and also makes bilateral

relationships between other agencies, such as Livestock Breeding and Veterinary Departments, Fisheries

Departments, Forest Department.

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Planning Department (PD)

Planning Department under the Ministry of National Planning and Economic Development is taking

responsibility to measure the growth of national economy including agriculture sector. Production statistics for

all economic sectors are compiled from the administrative records of concerned departments and ministries

whilst price data for various commodities are collected and compiled from the sample surveys.

Livestock Breeding and Veterinary Department (LBVD)

Major role of the Livestock Breeding and Veterinary Department under the Ministry of Livestock and Fisheries

is to collect, compile and disseminate the livestock production statistics of Myanmar. Furthermore, LBVD also

has a responsibility for animal health and livestock development activities of Myanmar. LBVD also conducts

the field surveys for the collection of livestock production statistics. LVBD produces livestock statistics, such as

livestock population, production of livestock and livestock products, annually.

Department of fisheries (DOF)

Department of Fisheries is one of the department under the Ministry of Livestock and Fisheries and it is taking

responsibility for the management of fisheries, conservation of fishery resources, providing extension services,

conducting research and compilation of fishery statistics of the Union of Myanmar. Major statistics

disseminating in DOF are production from freshwater and marine fisheries and volume and value of exports.

Other Agricultural Related Government Agencies

Department of population under the Ministry of immigration and population has highest responsibility for

conducting population censuses and demographic surveys, estimating and publishing national, states/divisions

population figures and urban/rural population figures of Myanmar. Another important department for

preparing agricultural statistics is Department of Labor under the Ministry of Labor. Department of Labor also

conducts labor force surveys and disseminates agricultural labor force statistics through the various statistics

reports.

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5.2.2 Problems Facing in Agricultural Statistics

Agricultural statistics and information will play increasingly important roles in agricultural sector development.

Accuracy and timeliness of data are quite important for MOAI in order to maintain the efficiency and quality of

government services. However, present situation of agricultural statistics is quite unsatisfactory from the users

point of view.

Utilization of agricultural statistics and agricultural sector information is no longer confined to the

governmental sector and their use has expanded and has become a stimulus for growth of the private sector

with the shift of government policies to diversify agriculture from subsistence level farming to a more

profitable business venture.

Statistical data officially published by MOAI is limited in terms of their scope and quantity. Present mechanism

and procedure of data collection does not assure high degree of data accuracy, reliability and timeliness. Data

analyses for forecasting and other purposes to serve policies are not sufficient. These problems originate from

the following constraints to the statistical organization and its activities:

Agricultural statistics in Myanmar are under the responsibility of three different line Ministries. Each

ministry has its own statistical unit to serve its own needs either through the survey method or as a

byproduct of administration.

Data are not widely disseminated and few statistical publications are issued.

Crop forecasting procedures are inadequate.

The whole land records system and its associated registers are still manual operations.

Manpower is insufficient for all levels of the statistical organization, particularly for field-level data

collection. Basic understanding, quality-control practice and techniques concerning statistics need to

be upgraded for the staffs in the ministry, province and field levels.

Transportation and communication infrastructure is still very week. Access to villages and fields are

not quite easy for district officers. Data reporting is often delayed by poor communication conditions.

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6. Global Strategy Problem for the Krishidhan seeds

Krishidhan Seeds Ltd, one of the top few players in the Rs 8,000-crore strong seeds business in India,

has rationalized and consolidated its product line and will stick to the higher end of the market.

Under this new strategy, the company has launched pelletted seeds of tomato and chillies and

encrusted seeds of onion in the Indian market. It has plans to introduce these for vegetables such as

cabbage and capsicum as well in the near future. It has acquired the technology for the pelleting and

encrusting process from a European company.

“For the last year we have stopped dealing in notified seeds. We will operate only in our own hybrid

variety of seeds, and have also closed the guerrilla and me-too lines of business,” Mr Sushil Karwa,

Managing Director, Krishidhan Seeds, said. He said that the number of trade partners has been pruned

down from 2,000 to 800, while the geographic area of sale had also been consolidated.

Following the re-organization, Krishidhan will restrict itself to selling seeds of Bt cotton, which accounts

for 60 per cent of its revenue, and corn, pearl millet, wheat, soya, paddy and pulses. “With sales of 20-

22 lack packets of Bt cotton seeds till July 2011, our share in this segment was 5 per cent,” says Mr

Suresh M.R., Executive, adding that this year, the company was targeting sale of 40 lack packets for a

10 per cent market share.

Another new line of business Krishidhan has recently entered into is the sale of micronutrients and has

received an order to supply the product manufactured by the gluconate technology over a period of

three years.

7. Winning Strategy for the Krishidhan

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Krishidhan Seeds Limited., One of the top five seed companies in India has opened it's first European

subsidiary from the 1st July 2010 under the name and style "KRISHIDHAN SEEDS EUROPE B V". Having HQ at

Enkhuizen, Holland.

The Company deals in High Quality seeds in Field crops, Vegetable crops and Plant Nutrition's Products. The

Group has State of Art Infrastructure for R&D, Breeding, Biotechnology, Supply Chain and Marketing.

The company is determined to implement the three "P's" (Planet, People and Profit) in their International and

Domestic Business. With this new subsidiary, Krishidhan Group became the first Indian seed company

spreading it's wings into High Tech, High Value and Attractive Market of International Seed Industry.

July 13, 2011 : Krishidhan Seeds Europe and Florencis Group sign multimillion distribution agreement !

ECO certified Gluconates are the future of organic farming Enkhuizen July 12, 2011 Krishidhan Seeds Europe,

the makers of the patented Eco-gluconates for the Grower industry like Gluco Mix, Gluco Zink, Gluco Calbor,

today announced they have extended their distribution channel through a new exclusive agreement with the

Florencis Group, a large distribution company with an International marketing and sales force with her HQ in

Rotterdam. As of the 1st of August 2011, the agreement entitles Florencis Group B.V. the rights to distribute

and resell Krishidhan's Gluconate product line in the world markets excluding India and the Netherlands.

Through Florencis's network of distribution channels, Krishidhan will be able to strengthen its presence in the

organic nutrients market.

The unique (patented) gluconate product line, which increases the growth, resistance levels and yield of

productions of agronomical products such as vegetables, field crops etc. will give us a unique position in the

Agro industry that is why we at Florencis are excited with the possibilities this cooperation gives to our

company said Kees Moolenaar CEO of Florensis Group B.V. Krishidhan Seeds Europe B.V.Founded the First of

July, 2010 as a 100% daughter of the Krishidhan Group of Companies in Pune India, Krishidhan Seeds Europe is

the hub of Krishidhan India to the world.

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April 20, 2011 : Krishidhan Seeds Europe B.V. and Axia Vegetable Seeds B.V. announce that they have

started a strategic alliance together!

The field of cooperation is: Breeding, Seed technologies and Sales. We are very proud and pleased that we

achieved this strategic alliance together, said Jan Tamboer CEO of Krishidhan Seeds Europe. The cooperation

between Krishidhan and Axia will lead to a higher level of flexibility and speed to market.

With Axia (a new venture of Sandor van Vliet), we will access to the top European vegetable seed industry as

well as large growers of produce.

Sandor van Vliet is excited with this agreement after such short time after the start of his company, and having

access to the technologies of Krishidhan with such high level experience and knowledge.

“We are positively surprised of the high level Bio technology within Krishidhan; this will be of great value for

the future of our company. On sales level in Europe and the Middle East the cooperation between Krishidhan

and Axia starts in the very near future. We are convinced this alliance will give a positive contribution to the

revenues of both companies.

With a turnover of around 313 crore, Bt cotton continues to be our core business, contributing significantly to

our total revenue. We are working in all states and have launched stellar products for each zone of India.

Krishidhan has special focus on Maharashtra as it contributes to 35 percent acreage of India, which makes it

the biggest cotton seed market. Along with Maharashtra, Madhya Pradesh and Gujarat being adjacent and

similar in agro-climate requirements, are other states where our Bt cotton hybrids have outperformed and

enjoyed most preferred status in the market. In the north, because of our newly launched hybrid, “Pancham”,

we have received widespread acceptance by the farming community. Pancham has been developed by

combining a package of technology to enable superior genetics integration suiting to northern zone dreaded

diseases and pest resistance, and deep root characters that help establish with ease during prevalent stress

conditions in Northern India.

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