krishi gcr
TRANSCRIPT
Chapter: 1
Introduction
Of
Krishidhan seeds Ltd
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.
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.
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
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
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
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
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
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
Cotton
Pulses
Paddy
Cereals
Oil Seeds
Crop Protection and Nutrition
Chapter: 2SWOT Analysis
of Krishidhan Seeds Ltd
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
Chapter: 3Market Opportunities
3: Market Opportunities of Agriculture industry in Burma
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
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
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
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.
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.
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
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/-
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.
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.
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.
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
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
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.
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
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.
Chapter: 4Potential
Business Opportunity
4.1 Doing Business in Burma
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.
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.
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
Chapter: 5Policy and Norms
Of India and Burma
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.
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.
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
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.
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.
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
(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.
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.
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.
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.
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.
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
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.
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.