plantation crop industry

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Plantation crops industry Presenter: Manish Singhal MBA (AB) 1 ST Year. IABM BIKANER 1

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Page 1: Plantation Crop Industry

Plantation crops industry

Presenter:Manish Singhal

MBA (AB) 1ST Year.IABM BIKANER

1

Page 2: Plantation Crop Industry

Flow of presentation

IntroductionTea industryCoffee industryCoconut industryCashew nut industryRubber industryCocoa industryAnalysisFuture challengesreference

2

Page 3: Plantation Crop Industry

introduction

Definition of plantation crop: It is defined as large scale production of tropical crop by uniform system of cultivation under cultural management.Major crops are grown as: Tea, coffee, coconut, rubber, cocoa, cashew nut.Minor crops: Oil palm, areca nut.15% of the total agricultural export earnings come from crops like tea, coffee and rubber – although these industries occupy only one percent of the total plantation area.

3Source: Handbook of horticulture

Page 4: Plantation Crop Industry

TEA INDUSTRY• India, largest producer and consumer

of tea.• 27% of world production and 13% of

world trade.• Direct employment to one million

workers.• Import of tea is permitted with an

import duty of 100%.• Indian tea market valued at Rs. 8.6

billion.• Total turnover Rs. 10,000 crore.• Around 700 tea brands are available.

4Source: Tea board of India

Page 5: Plantation Crop Industry

Cont……

1692 registered Tea Manufacturers.2200 registered Tea Exporters.5848 number of registered tea buyers.Nine tea Auction centers. (as on 18.12.2009)

5

Source: Tea board of India

Page 6: Plantation Crop Industry

Production area

6

Source: Tea board of India

Page 7: Plantation Crop Industry

Tea area and Production

2003 2004 2005 2006 2007 2008820840860880900920940960980

1000

878.170000000001

892.97

945.97

981.8 986.43 980.82

Production(mKg.)

Production(mKg.)

2003 2004 2005 2006 2007490500510520530540550560570580

519.59 521.4

555.61567.02

578.45

Area('000mh)

Area('000mh)

7Source: Tea board of India

Page 8: Plantation Crop Industry

Export and Import

2004 2005 2006 2007 20080

50

100

150

200

250 197.67 199.05 218.73178.75

203.12

Export (M.Kg.)

Export (M.Kg.)

2006 2007 20080

5

10

15

20

25 17.41 20.8 16.75

Import(M.Kg.)

Import(M.Kg.)

8Source: Tea board of India

Page 9: Plantation Crop Industry

9

Past & future demand

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

0

200

400

600

800

1000

1200

1400

903 916101410341060

1092113011751211

123512661297

Demand : Past & Future MT

Demand : Past & Future th MT

Page 10: Plantation Crop Industry

10

Market segmentation

Share (%)

North

35%

East20%Wes

t25%

South

20%

Share %

Page 12: Plantation Crop Industry

12

Problems and measures

Problems

Large proportion of old trees

High input cost

Labour intensive

Measures

Rejuvenate old gardens

Government policies

Increase research &

development

Page 13: Plantation Crop Industry

13

COFFEE INDUSRY4% of world coffee production.

6th in world coffee production.

Karnataka accounts for 56.5% of country’s total production.

70% of the total coffee production is exported from India.

Employment to 6 lakh people.

Page 14: Plantation Crop Industry

14

Few facts about coffeeCoffee is an important primary commodity. With over 500 billion cups consumed every year, coffee is one of the world's most popular beverages.

Worldwide, 25 million small producers rely on coffee for a living.

Brazil is world leader in production of coffee followed by Vietnam, Indonesia, Colombia, Mexico and India.

For instance, in Brazil alone, where almost a third of all the world's coffee is produced, over 5 million people are employed in the cultivation and harvesting of over 3 billion coffee plants

Page 15: Plantation Crop Industry

Coff ee

15Source : www.mapsofindiacom

Page 16: Plantation Crop Industry

Coffee area &production

2004-05 2005-06 2006-07 2007-08 2008-09345350355360365370375380385390395

363.08

379.7 381.08388.19 394.35

Area('000ha)

Area('000ha)

2004-05 2005-06 2006-07 2007-08 2008-09245250255260265270275280285290

275.5 274288

262 262.3

Production('000MT)

Production('000MT)

16Source: coffee board of India

Page 17: Plantation Crop Industry

Export

2004-05 2005-06 2006-07 2007-08 2008-090

50

100

150

200

250

217.76 201.55

249.02

218.99196.53

Export('000ton)

Export('000ton)

17Source: coffee board of India

Page 18: Plantation Crop Industry

18

Coffee: present and future demand

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

0

50

100

150

200

250

300

350

400

450

290265

317322328337347359373390

409430

Demand : Past & Future th MT

Demand : Past & Future th MT

Page 19: Plantation Crop Industry

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Major Issue & Measures

Inadequate

adoption of

technology

Cost is high

Less research &

development

Infrastructure support for processing

Restructuring of loans & interest relief to growers(a subsidy of 5% for small growers & 3% for large growers)

Higher R & D

Page 21: Plantation Crop Industry

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Coconut industryIndia is 3rd rank in production of coconut.Kerala is the leading state to production of coconut.Industrial use of coconut:Coconut leavesCopraHusk and shellCoconut trunkCoconut rootsShelter and toolsCoir

Page 22: Plantation Crop Industry

Area & production

2003-04 2004-05 2005-06 2006-07 2007-08184018601880190019201940196019802000

1993.7 1995

1946.8 1936.8 1903.19

Area('000ha)

Area('000ha)

2003-04 2004-05 2005-06 2006-07 2007-080

2000400060008000

10000120001400016000 12178.2

12832.914811.1

15840.4 14743.56

Production(Million Nut)

Production(Million Nut)

22Source: Coconut Development Board

Page 23: Plantation Crop Industry

23

Coconut’s product export

2005-06 2006-07 2007-080

100020003000400050006000

4365.155120.01

1031.44

Value(Rs. In Lakh)

Value(Rs. In Lakh)

Source: Coconut Development Board

Page 24: Plantation Crop Industry

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Major exporter & processor of coconut

Sri Kuppanna Oil Mills: Coconut OilAllwin coir product: Fiber product makingMarico: Coconut hair oil (Parachute)

Page 25: Plantation Crop Industry

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Cashew nut industry

India is the largest producer, processor, consumer and exporter.India produces 45% of the global production of cashew.In Goa, the pseudofruit is mashed and mixed with water and sugar and used to make Feni (a popular liquor) by fermentation.

Page 26: Plantation Crop Industry

Cashew nut area & production

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-080

100200300400500600700800900 720 750 770 780 820 837 854 868

Area('000ha)

Area('000ha)

2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 2007-080

100

200

300

400

500

600

700

450 470 500535 544 573

620665

Production('000ton)

Production('000ton)

26

Source: www.indiastat.com

Page 27: Plantation Crop Industry

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Cashew nut export & import

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0200400600

161.79

402.979999999999

442.59

479.71

543.94

586.49591.61

import('ooo tonnes)

import('ooo tonnes)

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

0

50

100

150 98.2 129.43 99.68118.11

125.1

122.78111.28

export('000 tonne)

export('000 tonne)

Source: www.indiastat.com

Page 28: Plantation Crop Industry

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Major exporter & processor

Vijayalaxmi cashew co.

Olam exports (India) ltd.

Kerala nut food co.

Page 29: Plantation Crop Industry

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RUBBER INDUSTRYIndia is the 3rd largest producer of rubber in the world.

4th largest producer and 5th largest consumer of natural rubber.

8.8% share in world production. (2006)

India is the world largest manufacturer of reclaim rubber.

Turnover of Rs 12000 crore

Around 6000 units

Page 30: Plantation Crop Industry

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Rubber export & import

2002-03 2003-04 2004-05 2005-060

1000020000300004000050000600007000080000 55311

75901

46169

73830

Export(tonne)

Export(tonne)

2002-03 2003-04 2004-05 2005-06 2006-070

100002000030000400005000060000700008000090000

26217

44199

72835

45285

88040

Import(tonne)

Import(tonne)

Source: Rubber board of India

Page 31: Plantation Crop Industry

Source: www.indiastat.com 31

Total rubber consumption

2002-03 2003-04 2004-05 2005-06 2006-07P 2007-08P 2008-09P0

200000

400000

600000

800000

1000000

1200000

695425 719600755405

801110 820305861455 871720

194850 210190 224650 237495270830

297155 292950

890275929790

9800551038605

1091135

1158610 1164670

NaturalSyntheticTotal(tonne)

Page 33: Plantation Crop Industry

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Major playerApollo Tyres

MRF Tyre Ltd.

Ceat Ltd.

JK Tyre

Birla Tyre

Page 34: Plantation Crop Industry

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Advantages of rubber industry

There is a large domestic market. There is easy availability of cheap labour. Indigenous availability of the basic raw materials, like natural rubberGovernment policies have a profound influence on rubber prices.

Page 35: Plantation Crop Industry

Source: wikipedia.com 35

Cocoa industryCocoa is called as “food of God”.Kerala is leading state as 78% production of cocoa.Only seeds are used in industry.Main products: Cocoa butterChocolate

Page 36: Plantation Crop Industry

Source: cocoa and cashew nut board 36

Cocoa Area & Production

2004-05 2005-06 2006-07 2007-08 2008-090

5000100001500020000250003000035000 27811 29471 30341 31885 34049

Area(ha)

Area(ha)

2004-05 2005-06 2006-07 2007-08 2008-090

2000

4000

6000

8000

10000

12000 925010175 10180 10560

11820

Production(MT)

Production(MT)

Page 37: Plantation Crop Industry

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Cocoa Export & Import

2003-04 2004-05 2005-06 2006-07 2007-080

50100150200250300350400450

194.78

286.9248.02

401.19 422.58

Export(value in Rs. Million)

Export(value in Rs. Million)

2004-05 2005-06 2006-07 2007-080

200400600800

100012001400160018002000

920.091128.86

1350.57

1893.6

Import(Value in Rs. Million)

Import(Value in Rs. Million)

Source: cocoa and cashew nut board

Page 38: Plantation Crop Industry

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Major player

MNC are mainly dominated in our India to make chocolate and other cocoa product:Cadbury.Harshey.Cargill.Ferraro.Mars.Tharkaran and company.

Page 39: Plantation Crop Industry

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analysisToday there is no credible alternative facility available to a grower to meet the risks of price movements and the art of price risk management is unknown to the small growers. There should be an urgent need to provide the personal accident cover to small growers. This facility is also to be extended to the plantation workers who are solely dependant on the plantations. Farmers, processors and exporters should be enabled to utilize the instrument of derivative contracts and options instituted by the Commodity Derivatives Exchanges of India.An innovative market literacy program on trading in general and future trading in particular is to be launched.The current system of banking regulations does not allow non-investment banks to participate in derivative trading.

Page 40: Plantation Crop Industry

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Cont…..

All the banking institutions with exposures to futures trader’s commodities, should be allowed to participate in futures trading.Development of infrastructure facilities in plantation areas will go a long way in providing market access. Poor productivity of the crops (need of higher R & D).

Page 41: Plantation Crop Industry

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Future challenges

Shrinking international markets. Emergence of low-cost competitors.Growth of Mature/differentiated markets.Competing beverages and presence of overseas suppliers.Pests and diseases / Vagaries of weather.Substitution effect of tea & coffee.

Page 42: Plantation Crop Industry

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ReferencesHandbook of HorticultureWikipedia.comwww.mapsofindia.comTea board of IndiaCoffee board of IndiaRubber board of IndiaCoconut development board of IndiaCocoa and Cashew nut board of India.Indiastat.comGoogle image

Page 43: Plantation Crop Industry

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THANK YOU