Karnataka State Profile

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    Karnataka Global Agribusiness & FoodProcessing Meet

    KARNATAKA PROFILE

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    The present economy

    India in World trade

    India Agriculture and FoodProcessing

    Karnataka

    Karnataka Agriculture and FoodProcessing

    Karnataka Infrastructure

    Karnataka - GovernmentInitiatives

    Government Initiatives forForeign Investors

    Market Entry Options

    Karnataka Potential investmentsin agribusiness and allied sectors

    Contact details

    One of the fastest growing economy in the

    world; India is the 10th

    largest economybased on GDP at current prices

    220 of the Fortune 500 companies sourcesoftware from India.

    India is among only 3 countries in the worldto have built its own supercomputer.

    India is among only 7 countries in the worldto have built a car indigenously.

    India is among only 6 countries in the worldto have satellite launch capabilities.

    Agenda

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    Top FDI destination

    Rank Countries

    1 China

    2 India3 United States

    4 Russian Federation

    5 Brazil

    3 Ds Powering Indias growth

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    50

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    150

    200

    250300

    350

    2001- 02

    2002- 03

    2003- 04

    2004- 05

    2005- 06

    2006- 07

    2007- 08

    2008- 09

    Exports

    Imports

    GDP The 10th largest in the World* India Trade scenario

    0

    500

    1000

    15002000

    2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

    India GDP in USD Bn

    CAGR of8.6% in thelast 7 years

    USD 122.68 billion in FDI inflows betweenApril 00 and Oct 10

    2nd most promising country for overseasbusiness operations (JBIC Survey)

    India A High performance economy

    FOREX reserve

    USD 10,897 Mn

    15% of worlds population 550 mn < 25 yrsDemography

    Rule of law | Property rights| Independent Judiciary |Free pressDemocracy

    Helped to sustaineconomic growth andprovided immunityagainst the globalrecession

    DomesticDemand

    U

    NCTAD

    RBI

    USDBn

    3* at current prices

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    Enabling businessenvironment with greaterglobal participation

    Indian economic liberalisation - Enabling positive change

    1991 Parameter Now

    $ 1,400 GDP per capita (PPP adjusted) Approx $ 3770

    52% Literacy Rate Approx. 65%

    15 million Middle class households(income between $4200-21000 pa)

    300 million

    $ 100 million Foreign Investments $ 19 billion

    USD 2000 Million Forex Reserves USD 10897 Mn

    Nil Software and service exports $ 49.7 billion

    Strong marketfundamentals

    Young, large and growingHuman Capital base

    Globally recognized as one

    of the most importanteconomies

    Active member of the G20

    High potential of breaking into theUNSC as a permanent member

    Witnessed visits from the four leadingState representatives in 2010

    Impetus on infrastructuredevelopment

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    Agriculture and Food processing sector overview

    Fisheries

    Grains

    Plantation products

    Fruits &Vegetables

    Meat & poultry

    Processed food & beverages

    Milk and Milk products

    14.6 % of Indias GDP 10.23% of the total exports Employs 55% of the work force 52% cultivable land

    Contribution of agricultureto the Indian Economy

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    India - Agriculture and Food processing

    2nd largest in the world in farm output

    Agri GDP is USD 147.4 Billion andaccounts for 14.6% of GDP

    52% cultivable land compared to 11%world average

    Food processing industry is the 5th

    largest in India

    All 20 agri climatic zones exist in India

    46 out of 60 soil types are present inIndia

    MilkWheatPulsesJuteMangoesIn

    production

    RiceSugarcaneCottonTeaFruits and

    Vegetables

    1stWorldranking

    2ndWorldranking

    In

    production

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    113

    38 40

    98 100 101

    292

    0

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    250

    300

    350FDI in food processing(USD Million*)

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    145.8 144.4153.3

    170.8182.8

    191.8211.2 214.7

    0

    50

    100

    150

    200

    250

    India - Growing production trend (Horticulture)

    At current levels of production, in 2020, India can supply the following towards (world demand)76% rice (123 MT) | 75% wheat (101 MT)|

    83% sugarcane (412 MT) | 77% soybean (13 MT)|

    Production in Horticulture (Million Tonnes)

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    India - Fruits & vegetables

    Asia dominates the world scene accountingfor nearly 60% of Global production

    India accounts for about 16% of 890 milliontonnes of total Global vegetable production

    The processing of fruits and vegetables isestimated to be around 2.2% of the totalproduction in the country

    With the implementation of the NHM andother schemes, the production of horticulturecrops has increased from 170.8 million

    tonnes in 2004- 05 to 214.7 million tonnes in2008-09.

    38.30%

    12.60%

    3.30%2.70%

    6.00%5.30%

    2.00%1.20%

    1.90%

    10.60%

    18.60%

    2.90%

    Production share

    Banana CitrusGuava GrapesLitchi Papaya

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    India - Animal Husbandry

    Meat export market sizeis 5 mn tonne per annumaccounting for USD 1.25Bn ranking 6th in theexports of bovine meat

    India is the largestproducer of milk in theworld

    Produces 105 mn tonneper annum

    Among top 6 eggproducing and top 5

    chicken producingcountries in the world.

    India produces 7 milliontonnes of fish ranking 3rdafter China and Japan

    and 2nd largest producerof fresh water fish 150 166 288

    651 1047

    4569

    10227

    (in numbers)Infrastructure

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    Karnataka

    One of Indias most progressive statesand is considered to be a leading

    investment destination within thecountry

    More than half of Indian Biotechcompanies in the state

    States Hutti Mines are the onlyprimary gold producing source in the

    country

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    Karnataka - Strategic location

    STRATEGIC LOCATION FOR INTERNATIONAL & DOMESTIC MARKET

    Home to an international community with international investorfinding immense benefits from the state

    Located at the West Coast of India and well connected with major

    airports and ports worldwide. Excellently connected with 5 airports, 14 national highways, 114 state

    highways and railways. 300 KM long coast line with 1 major and 10 minor ports.

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    Karnataka One of the leading states in India

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    16.22%

    28.61%

    55.17%

    Contribution to State GDP

    Agriculture

    Industry

    Service

    14.60%

    30.20%

    55.20%

    Contribution to Indias GDP

    Agriculture

    Industry

    Service

    Indicators Unit Karnataka India

    Population in 000s 52,851 1,028,737

    Literacy Rate % 66.60 64.84

    Gross Income at currentprices (2009-10)

    INR crore 343,010(~USD 76 Bn)

    6,133,230(~USD 1363 Bn)

    Gross per capita Income atcurrent prices (2009-10)

    INR 58,582 52,421

    Karnataka India

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    Karnataka : Agriculture and Food Processing

    Comprehensivedevelopment of

    agriculture and alliedsectors

    Procuring moderntechnology and

    necessary capital

    from national andinternational sources

    Extending linkagesbetween agriculture

    and industriesthroughout the state

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    It is proposed toestablish anAgriculture

    Infrastructure Fundwith a minimum

    annual capital of Rs500 crore, to attractinvestment towards

    infrastructure for

    agriculture and alliedareas

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    9 Soil typesWide crop

    diversification10 Agro-

    climatic zones

    32% netirrigated land

    First State topropose an

    Agri-Budget

    CoffeeMedicinal crop

    Tropical fruitsin production1

    st

    Indiaranking

    FlowersFruitsSugar

    Vegetable cropsSpices

    in production5states

    Amongtop

    64.6% cultivable land

    Karnataka is one of thefew States in Indiawhich has escaped soildeterioration due tonatural interventions

    and injudicious use ofland. It has beenidentified as one of thestates within thecountry havingexcellent soil nutrientsincluding manganese,potassium and sulphur

    besides nitrogen

    Rich in soil nutrients

    States low on thementioned nutrients 1

    0Agro-climatic

    zones

    GoK has allottedRs. 40 Crore for

    extending theBhoo Chetana

    (soil enrichmentprogramme)

    Karnataka Agriculture overview

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    Karnataka - Horticulture

    Land Area -1,800,000 hectares

    Production 13,638,000 tones of output

    Overview

    Area expansion, assistance to farmers, supply ofseeds and seedlings, micro irrigation, control ofpests and diseases, post harvest management andmarketing etc.

    New initiatives throughintroduction of

    more beneficial programmes

    Post harvest management of horticulture produceand processing programmes like grapedehydration, red chilli powdering, construction ofstorage godown etc.

    Processing andValue Addition Measures

    Introduction of new varieties of vegetables;establishment of Karnataka grape wineboard; mango development board; modern arecanut dehusking machine; KSHDA

    New interventions

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    2

    4

    6

    2005 2006 2007 2008 2009

    Production trend for Fruits in Karnataka

    (Million MT)

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    4

    6

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    2005 20062007

    2008

    Production trend for Vegetables in Karnataka

    (Million MT)

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    0.1

    0.2

    2005 2006 20072008

    Production trend for Flowers in Karnataka

    (Million MT)

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    The totalvalue of

    horticulturaloutput is

    more than Rs

    18,000 crore

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    Karnataka - Flowers

    An area of about 20,000 hectare is under floriculture

    One of the largest area under modern cut flowers in thecountry

    Traditional flowers

    Rose (open cultivation) Chrysanthemum Marigold Jasmine Tuberose

    Non traditionalflowers

    GladiolusAster Zinnia Gaillardia Statice Lilies Gerberas

    Carnations

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    It is proposed to provide Rs 10 crore towards an International FlowerAuction Centre for establishing a special floriculture zone on the

    outskirts of Bangalore

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    Karnataka - Oilseeds

    Karnataka contributes 5% to thenational oilseed production

    Groundnut, sunflower and soybean arethe key Oilseeds

    Karnatakas production is about 10 to12 lakhs metric tonnes

    Portfolio includes - Groundnut,soybean, sunflower, safflower, castor,Niger, linseed, rapeseed, mustard arethe oilseed crops cultivated in the state.

    The yield of oilseeds and cotton hasincreased by 32% and 38% respectively

    Accelerated Oilseed Production Programme has been launched during 2010-11 withthe objectives to increase productivity by 30 percent, to impart improved technology

    practices to farmers by scientists/ specialists.

    589679

    496

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    Groundnut Soyabean Sunflower

    Yield (qntls/ha)

    Yield (qntls/ha)

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    Karnataka - Food grains

    Area under Principal Crops

    Item Unit Karnataka

    Productionin 2008-09

    (Mn ton)

    Paddy 000 ha 1,514 0.38

    Maize 000 ha 1,068 0.3

    Jowar 000 ha 1,382 0.16Wheat 000 ha 269 0.025

    Bajra 000 ha 266 0.018

    Pulses 000 ha 2,088 0.1

    The production of food grainsincreased from less than1.1 million tonnes in 2009-10 to morethan 1.25 million tonnes during thecurrent year

    Karnataka remains a majorcontributor towards the productionof Jowar, Maize and Pulses

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    The food grains production is likely to record a growth of 15%from 2009-10 to 2010-11. Though the area under cultivation has

    increased only by 3%, this record growth in production was due tothe impressive growth in productivity.

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    Karnataka - Animal husbandry

    32.8 million livestock in the state; among thehighest in the country and an annual sectorgrowth of 5%

    Ranks 3rd in India in egg production

    Karnataka is a key contributor towards

    production of meat, wool and eggs

    Ranks 11th in milk production

    42 chilling centers having 1.5 million liters ofchilling capacity

    2003-042004-05

    2005-06

    2014-2015

    1.35 1.391.43

    1.85

    Value of Output from Livestock sector in Karnataka(in US$ Bn)

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    In the year 2009-10, the output from animal husbandry sector is estimated tobe at Rs 13,273 crore. This is 19% higher in comparison to the previous year.

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    77.3

    53.4 50.8

    82.1

    54.3 51.7

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    90

    Area under mulberry('000 Ha)

    Production ofcocoons ('000 MT's)

    Quantum of cocoonmarketed ('000

    MT's)

    2008 -09 2009 - 10

    Karnataka - Sericulture

    Involves mulberry cultivation,production of cocoons, silk reeling, and raw silk production

    The area under mulberry cultivation in the State is about66.89 thousand hectares

    Karnataka leads the country insilk production with close to 25%of the share

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    A target has been set to increase silk production from 7500 to 8500 tonnes andincrease the mulberry cultivation to an area of 2 lakh acres.

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    Karnataka - Dairy

    Milk Produced in2008 -09 4.5 Milliontonnes

    No of dairy plants 15

    No of milch bovine 61,18,000

    No. engaged in dairyfarming

    2 millionfarmers

    No of DairyCooperatives

    10500

    Per capita milkavailability

    215gms/day

    40224124

    4313

    4538

    4821

    3600

    3800

    4000

    4200

    4400

    46004800

    5000

    2005-06 2006-07 2007-08 2008-09 2009-10

    Milk Production in '000 MT

    CAGR = 4.6%

    10th largest milk producer in India

    9th largest bovine population in India

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    Milk production in the State has increased to 48 lakh tonne from 41.24 lakhtonne during 2006-07.

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    Continental shelf area 0.027 Mn Sq. Km

    Length of coastline 300 Kms

    Fisheries export US$ 85.43 Million

    Fishermen population 767,484

    Length of river/canal 9000 Km

    Total water body area 0.56 Million Ha.

    Karnataka - Fisheries

    Rich in inland water resources

    Rich in pelagic resources

    Ideal for aquaculture

    USD 300 million contribution towardsGSDP of Karnataka

    Vibrant demography with emergingmarket for VAPs

    Karnataka coast also known asMackerel coast

    Policy orientation towards developing

    complete value chain

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    Fish production has increased in the state from 2.97 lakh tonne during2007-08 to 4.90 lakh tonne during 2010-11

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    Karnataka - Key export items

    Crops USD Million(2009-10)

    Coffee and its products 212.64

    Cashew and its products 92.84

    Processed food 92.06

    Spices and its products 52.19

    Marine products 58.67

    Total 525.09

    Exports of key crops from Karnataka

    To promote, develop and to increase exports of agriculture and horticulture produce from the state, an

    organization namely Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC)

    was established in 1996. The said organization from its inception up to December 2010 has handled 532543 MTs

    of various agricultural and horticultural produce worth Rs. 91580 lakhs

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    InfrastructureAgri - education

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    Karnataka infrastructure Agri education

    The Defence Food ResearchLaboratory (DFRL)

    Specialized institutes involved in food R&D

    It has, to its credit packaged food for zero-gravityenvirons of a spaceship begun work on the technology to prepare food for

    Indias first astronauts who will lift off into spacein 2015

    The Imperial Institute of AnimalHusbandry and Dairying

    Established in 1923 in Bangalore

    Leader in dairy education programmes in India Conducts basic research to support the dairy

    livestock Technological achievements include increasing

    the shelf life of dairy products

    Institute of Horticultural Research

    Premier University in India Dedicated to increasing horticultural productivity

    in the country Concentrates on research, training and

    consultancy and extension services Has developed several indigenous technologies

    e.g., grape rootstocks, high-density planting inbananas and pineapple

    Other important institutions offeringcourses relevant to agriculture

    National Institute of Technology (formerly REC),Suratkal

    Indian Institute of Science, Bangalore Indian Institute of Management, Bangalore Vishweshwaraiah Industrial Trade Centre,

    Bangalore

    The Karnataka Veterinary, Animal andFisheries Sciences University (KVAFSU),

    Bidar

    Focus on education concerning veterinary andanimal sciences, dairy sciences, fisheries and otherallied sciences

    The Central Food TechnologicalResearch Institute (CFTRI)

    Set in Mysore in 1950 ISO 9001 certification a mark of high quality CFTRI has also established the International Food

    Training Technology Centre in collaboration with

    the FAO and the International School of MillingTechnology, an Indo-Swiss venture. 28

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    Karnataka infrastructure : Agri - education

    Select agro-related education/ training institutes in Karnataka Regional Research Station of Sugarcane Breeding Institute, Jamkhandi

    Directorate of Biological Control, Bangalore

    National Research Centre For Cashew, Dakshina Kannada

    National Institute of Animal Poultry (NIANP), Bangalore

    Indian Veterinary Research Institute, Bangalore

    Division of Oil Seeds Research Station, Raichur

    Centre For Reproductive Biology, Indian Institute of Science, Bangalore

    College of Agricultural Engineering, Raichur

    College of Fisheries, Magya Nagar, Mangalore

    Department of Veterinary Training, Keesargatta, Bangalore

    College of Agriculture and Regional Research Station, Krishinagar, Dharwad

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    Karnataka infrastructure - Transportation

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    Karnataka infrastructure - Transportation

    State is well connected with road, rail, sea and air networks allowing access toother parts of the country and abroad.

    Aviation

    International airports at Bangalore and Mangalore connecting India and the World

    The other major airport in Karnataka - Mysore airport has been upgraded for commercial traffic

    Airports planned at Hassan, Shimoga, Bellary, Bijapur & Gulbarga

    A helipad each is planed for all 30 districts

    Bangalore International Airport Ltd. - BIAL

    Third busiest airport in India handling 10 million passengers a year

    First Airport built on PPP with an ability to handle 3000 passengers per hour

    A helipad each is planned for 30 districts

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    Karnataka infrastructure - Transportation

    Roadways

    More than 150,000 km road

    network in the State

    Targets to improve the network

    through various national and

    state level initiatives

    Monorail projects in Bangalore

    Railways

    3,300 km railway line across

    State.

    High-speed rail link to the

    Bangalore airport planned

    Two mono rail projects in

    Bangalore

    Ports and Shipping

    Long shoreline of 300 km.

    Major port in New Mangalore

    handles in excess of 36.02 MT

    and 7% of the countrys total

    traffic in major ports

    10 minor ports in Karwar,

    Belekeri, Tadri, Honnavar,

    Bhatkal, Kundapur,

    Hangarkatta, Malpe, Padubidri

    and Old Mangalore. Tadadi and

    Haldipur ports set for expansion

    on PPP basis.

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    Karnataka infrastructure - Power

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    Karnataka infrastructure - Power

    Karnataka power profile

    Highest thermal generation of 13263 Million Units (2009-10)

    Highest capacity addition of 730 MW, in 2008-2009

    Current installed capacity at 1200 MW with action to elevate it to 1600 MW

    Generation 2009-10 2008-09 2007-08

    Thermal 13,263 11,717 10,876

    Diesel +

    Hydro +

    Wind + Solar

    12,757 13,363 14,737

    Total 26,020 25,080 25,613

    Power generation in Million Units

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    Government initiatives

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    Government of Karnataka has earmarked Rs. 17,857 crore (USD 397.62 Mn)for

    agriculture, allied and irrigation sector development for 2011-12 in the nations firstagriculture budget

    Rs 1,000 Crore forSuvarna Bhoomi Yojna (reviving lives of 10,00,000 farmers)

    Rs 1,000 Crore for Revolving fund

    Rs 500 Crore for Agriculture Infrastructure fund

    Rs 200 Crore for Organic Farming

    Rs 125 Crore to encourage Bio-Fuels

    Rs 100 Crore for Drip Irrigation subsidy

    Rs 100 Crore for construction of small harbours

    Rs 40 Crore provision for making available a modern mobile unit in each taluk to carry out

    extension work in agriculture, horticulture and animal husbandry Rs. 40 Crore for extending the Bhoo Chetana (soil enrichment) an Rs 10 Crore for

    floriculture development

    Diploma courses for agriculture related subjects

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    State Level Single Window Clearance Committee (SLSWCC) has approved 378 projectswith an investment of Rs.6087.37 crore (USD 1351 Mn), with an employment potential of 1.03 lakhs.

    State High Level Clearance Committee (SHLCC) has cleared 130 projects withan investment of Rs. 146566.89 crore, and employment potential of 4.63 lakhs persons

    Karnataka - Recent investments

    The Global Investors Meet: 3-4 June 2010

    Expected total investment from the Meet about Rs 473000 crores (USD 104,976 Mn) Employment potential of 85,000 new jobs

    Vibrant Gujarat Summit 2011 Partner state

    20 MOUs/Expression of Interests have been signed Expected investments of Rs.24,759 crore in 10 sectors (USD 5,494.979 Mn) Employment Potentials of 24,795 persons

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    List of abbreviations

    GDP Gross Domestic Product PPP Public Private Partnership

    FDI Foreign Direct Investments MW Mega Watts

    JBIC Japan Bank for International Cooperation KUM Karnataka Udyog Mitra

    MT Million Tonnes KIADB Karnataka Industrial Areas Development Board

    NHM National Horticulture Mission VAT Value Added Tax

    GSDP Gross State Domestic Product NABARD National Bank for Agriculture and Rural Development

    IT Information Technology BT Biotechnology

    KSHDA Karnataka State Horticulture Development Agency Ha Hectares

    GoI Government of India GoK Government of Karnataka

    References

    Economic Survey of India

    UNCTAD Reserve Bank of India Karnataka Economic Survey

    Karnataka Agriculture Budget 2010-11 Indian Horticulture Database

    Department of Sericulture, Government of Karnataka Ministry of Food Processing Industries, Government of India Infrastructure Development Department Government of Karnataka Karnataka Power Corporation Limited Ministry of External Affairs, Government of India IBEF Department of Animal Husbandry, Dairying & Fisheries, Government of India

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    Contact

    The Managing Director

    Karnataka State Agricultural Produce Processing and ExportCorporation Limited(A Government of Karnataka Enterprise)No.17, Richmond RoadBangalore 560025INDIA

    Phone: +91 80 2227 1194 / 2224 3082Fax: +91 80 2227 8974

    Email: [email protected]

    Additional Information

    http://www.bounteouskarnataka.com

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    Disclaimer: This presentation has been prepared for general guidance on matters of interest only. The reader should not act upon the information contained in this presentationwithout obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in thispresentation, and, to the extent permitted by law, GoK, its consultants, its members, employees and agents accept no liability, and disclaim all responsibility, for the consequences of

    readeror anyoneelse acting or refraining to act in reliance on theinformation contained in this presentation or forany decision based on it

    mailto:[email protected]:[email protected]