A perspective on agricultural and trade issues of

A perspective on agricultural and trade issues of India …. Indian Agriculture – An Overview… Challenges facing Indian agriculture & Syngenta’s contribution… March 6, 2014

Some facts…. Total calorie requirement will go up from 2495 to 3000 Food grain production would need to increase by 5. 5 MT annually By 2050 global population will rise to 9 billion…. out of which 1. 7 billion will be in India alone Currently. . 52% of our population is involved in Agriculture. . yet it contributes just 13. 7% to India’s GDP 2 Demand for high-value food commodities will go up by > 100% due to migration of people into cities, increased wealth, shift towards diets rich in protein

Growing resource constraints Produce more with less… Land | Water | Labor • • Much of India’s total arable area already in use (46%) Most remaining land has serious soil and terrain constraints Arable Land (ha) person 0. 9 Most populous countries have least room to expand Hectare of Arable Land 0. 8 0. 7 0. 6 0. 5 0. 4 0. 3 0. 2 0. 1 3 Source: UN and FAO, 2005 e a ba m Zi Af ut h So bw ric o ic ex M SA U a ne si In do C hi n a a di In si us R Br az il a 0

There is also the problem of…. Decreasing size of landholding 86% growers They cultivate 44% of the land Landholding declined from 2. 30 ha in the 70 s to 1. 32 ha in 2000 -01 Average size would be a mere 0. 68 ha in 2020 and 0. 32 ha in 2030 in India are smallholders 4 contribute 50% to farm output

And the degradation of the production environment…. Soil erosion has degraded 120. 72 million ha of land in India 8. 4 million ha has soil salinity and water-logging Water-table & water quality deteriorating Green-revolution belt exhibiting problems owing to overexploitation and mismanagement of soil-and-water resources 5

Growing resource constraints Produce more with less… Land | Water | Labor Agriculture is India’s largest user of water >40% lost to inefficient practices Nearly 50% agricultural land is rain-fed 6 Source: UN-Water and FAO

Growing resource constraints Produce more with less… Land | Water | Labor Farm demographics- aging population and migration to cities influence labor availability High-tech machines, complex production processes and strict production regulations require skilled labor 7 Source: UN-Water and FAO

Indian Agriculture ● India agriculture has an extensive background which goes back to 10 thousand years. At present, in terms of agricultural production, the country holds the second position all over the world. ● Indian Agriculture has made rapid strides since independence; - From food shortages and import to self-sufficiency and exports. - From subsistence farming to intensive and technology led cultivation. - Today , India is the front ranking producer of many crops in the world. - Ushered in through the green, white, blue and yellow revolutions 8 8

Indian Agriculture – Respective Global Rank Total Area 7 th Irrigated Area 1 st Population 2 nd Economically Active population 2 nd Total Cereals 3 rd Wheat 2 nd Rice 2 nd Coarse grains 4 th Total Pulses 1 st Oil Seeds 2 nd Fruits and Vegetables 2 nd Implements (Tractors) 3 rd Milk 1 st Live Stock (castles, Buffaloes) 1 st 9

Indian Agriculture- Some Facts ● Contributes to 14% of GDP ● Provides food to 1. 25 Billion people ● Sustains 65% of the population : helps alleviate poverty ● Produces 51 major Crops ● Provides Raw Material to Industries ● Contributes to 1/6 th of the export earnings ● Huge bio-diversity : 46, 000 species of plants & 86, 000 species of animals Largest producer in the world of pulses , tea , and milk ● India was largest exporter of rice and guar gum, and second largest exporter of cotton and beef (buffalo meat). ● Second Largest producer of fruits & vegetables, wheat, rice, groundnut & sugarcane. ● Our major imports: edible oils (US $11 billion) and pulses (about US $ 3 billion). 10

Agriculture productivity in India - 1970 to 2010 Average YIELD, 1970 -1971 Average YIELD, 1990 -1991 Average YIELD, 2010 – 2011 kilogram per hectare Rice 1123 1740 2240 Wheat 1307 2281 2938 Pulses 524 578 689 Oilseeds 579 771 1325 Sugarcane 48322 65395 68596 Tea 1182 1652 1669 Cotton 106 225 510 Crop 11

Indian Agriculture – Major Crop Areas Total Geographical Area - 328 million hectares Net Area sown - 142 million hectares Gross Cropped Area – 190. 8 million hectares Major Crop Production; 12 Rice 106 million tonnes Wheat Coarse Cereals Pulses 96 million tonnes Oilseeds 20. 9 million tonnes Sugarcane 29. 9 million tonnes 41 million tonnes 20 million tonnes

Indian Agriculture – Strong regional variations in yield Average farm yield in Bihar Average farm yield in Karnataka Average farm yield in Punjab kilogram per hectare Wheat 2020 N. A 3880 Rice 1370 2380 3130 Pulses 610 470 820 Oil seeds 620 680 1200 Sugarcane 45510 79560 65300 Crop 13

Indian Agriculture – Present Scenario (SWOT) ● STRENGTHS - Rich Bio-diversity Arable land Climate Strong and well dispersed research and extension system ● OPPORTUNITIES - 14 ● WEAKNESS - Fragmentation of land - Low Technology Inputs - Unsustainable Water Management - Poor Infrastructure - Low value addition ● THREATS - Unsustainable Resource Use - Unsustainable Regional Exports Development Agro-based Industry - Imports Horticulture - small and shrinking holding Untapped potential in the size (1. 16 ha in 2010 -11); North Eastern part of India - climate variability. . . high risk. But the future is safe and optimistic for the next decade and more Bridgeable yield crops

10 challenges faced by agriculture in India ● ● ● ● ● 15 Small and fragmented land holdings Manures, Fertilizers and Biocides Shortage of good quality Seeds for poor peasants Problem of Irrigation Lack of mechanization Soil erosion Agricultural marketing Inadequate storage facilities Inadequate transport Scarcity of capital Classification: PUBLIC Draft

Contribution of Syngenta in India 16

Syngenta in India is…. • A leading Agribusiness • Providing Integrated solutions • Engaging with growers at every step. • Focusing on 8 strategic crops. • World class R&T centre and Manufacturing site in Goa • Research stations across India • Seed manufacturing facilities 17

Our Strategy Our strategy has growers’ needs at its heart Integrate Innovate Outperform 18 Create integrated offers supported by agronomic expertise and understanding of growers challenges Develop new solutions combining biology and chemistry, incorporating adjacent technologies and building new business models Outperform on the farmer’s field, gain market share, sustain profitable growth

Our Philosophy Taking responsibility for our products- from production to safe use, storage and disposal is a priority at Syngenta 17, 000 trainings for farmers in 2012 More than 1 million farmers and nearly 1900 Channel partners trained 6500 posters in regional languages distributed Active participation in ‘Container Management Program’ of Crop Life India 19

Our Collaborations n in 2 nd Gree Participating astern States E n I n o ti lu o Rev Collaboratin g with India ’s biggest coop erative MARKFED 20 Partnering w ith Punjab Agriculture U niversity (PA U) al t with Nation c je ro P e p ra G ntre (NRCG) Research Ce ct with PAU je ro p S C I e Ric Food Securi ty Agenda

Corporate Social Responsibility Me & Mine a ddresses wo rking conditions o n seed farms es i Mitr giv h is r K ta Syngen lutions to o s p o r c e innovativ growers 21 r aining fo r t E S H t uc We cond e & Mine M h g u o r h growers t Preservin g t our globa he environment a t l supply b ase in Go a Sparsh c ontibutes to educa skill deve tion, lopment, w omen empower ment in G oa dia dation In n u o F s ta Syngen allholder m s s in a r t helps and

The Good Growth Plan India 22

The Good Growth Plan More food Less waste More biodiversity Less degradation Make crops more efficient Rescue more farmland Increase average productivity of the world’s major crops by 20% without using more land, water or inputs Improve the fertility of 10 million hectares of farmland on the brink of degradation More health Less poverty Empower Help people Look after Help biodiversity smallholders stay safe every worker flourish Enhance biodiversity on 5 million hectares of farmland Strive for fair Reach 20 million Train 20 million farm workers on labor conditions smallholders throughout our and enable them labor safety, especially in entire supply to increase developing chain network productivity countries by 50% One planet. Six commitments. 23

India Examples Gro. More an integrated rice solution comprising of simple protocols offering timely advice ‘in the language of the farmer’ to establish and protect the crop, delivering immediate yield increases of up to 30%. Tegra™: Piloted in South India in 2009. An integrated growing system, delivering more productive tillers and a yield increase of up to 30%. Project Nirmiti: a program that utilizes a network of local residents to make agricultural knowledge, inputs and services available to smallholders in rural India to improve farming practices, productivity and livelihoods. Techno-Commercial Centers: Farmer Producer Companies set up by government in Madhya Pradesh aim to help India’s smallholders access technology and achieve economies of scale in purchasing, marketing etc. Syngenta Me and Mine utilizes a network of local residents to make agricultural knowledge, inputs and services available to smallholders in rural India to improve farming practices, productivity and livelihoods. 24

Joints projects with PAU “ Popularsing recommended agronomic practices of crop viz Rice, Corn, Wheat & Potato” Major PROJECT Gro. More Rice / Max. Wheat 25 Classification: INTERNAL ONLY

Summary of North Gro. More pilot project with PAU – 2012/13 MOU Signed with PAU Sharing Gro. More concept Oct. 2011 June 2012 Syngenta Gro. More Pilot Yield increase – 32% Syngenta CP protocol – Rs. 7731/ha Grower CP spend – Rs. 4790/ha Additional income – Rs. 21917 / ha PAU officials sharing Gro. More Tillers to farmers August 2012 26 Classification: INTERNAL USE ONLY PAU officials & growers Counting Gro. More Panicles & grains September 2012 Actual yield and quality data is expected by Oct end 2012 Outcome for Grower & Syngenta Better ROI for grower October 2012 onwards

Outlining Gro. More Project • • Selected 5 Districts in Punjab – Divided each in to two sub districts. 5 Villages in each sub district – 10 Villages per district 5 Growers per village – 250 Growers in all 5 districts Undertaken ½ Acre of Grower for Gro. More – 125 Acres Under Gro. More Geography Central Plain Zone Developin g Amritsar Developed Ludhiana Mixed Jalandhar • 27 Sub Mountainous Undulating Zone Undulating Plain Zone Developing Geography Gurdaspur Kapurthala Selected 5 Districts cover; • Major rice agro climatic zones • 40% of Punjab rice acreage & production • PAU presence (Farm Advisory Services) • Both Rice-Wheat & Rice-Potato rotations Developed Geography

Data Summary • Total Grower Data – 173 (8 Sub Districts ) • ROI - Average yield increase value is R. 22 K/Ha over farmer practice with Rs. 3 K/Ha increase in CP spend. • Average Increase in Yield & Additional Income across geographies; Developing Developed Mixed Yield Increase - MT/ Hectare 1. 82 1. 56 1. 68 Yield Increase % 41% 20% 30% Additional Income/ Hectare - INR 23321 19904 21520 28

Gro. More – Summary of “ Grower feedback” • Nursery in beds • Gro. More Plot is like is meaningful garden – Everyone • stops to see. Line transplantation helped in aeration • Liako prophylactic of crop hence less is unique. pests/Disease • Fellow farmers who & Agri. ops are easy made fun of us are • Reduced Fertilizer now appreciating. inputs • • Actara drench gives will yield more. lush-green-healthy • seedlings. emergence/tillering. • One line off is good • • Thionutri at 15 DAT Rs. 800 on manual gives more tillers weeding in my plot • • Not only preached but More hills/Sq. Meter Uniform crop Had to spend The only company practiced too. having complete solution. 29

Gro. More is a dream harvest for farmers !! Better Output Price – because of better quality Gro. More crop fetching min 22 $ /MT means 9% higher than farmer practice Early Harvesting - Gro. More harvesting is early by 15 days , means will be able to advance sowing of Rabi crop for a better harvest. Observe the grain color Gro. More Practice 30 Farmer Practice 1 st Gro. More harvest in market

Gro. More – Summary of officials'’ feedback I would like to thank Syngenta rice team for this kind of Unique initiative in our developing area of Rice. Deputy commissioner Gurdaspur – Dr. A Trikha IAS By this unique story telling you are not only doing verbal education of rice cultivation but also demonstrating it in farmer fields…. is commendable. Syngenta rice team was recognized in annual PAU Kissan expo. PAU Vice- Chancellor , Dir. of Agriculture Punjab, ADG IRRI, Head of PAU Kissan Club, PAU governing board members NABARD Team & Deptt of Agriculture officials 31 We feel good to attend such knowledge dissemination meetings Dr. MK Saini – FASS ( Farm advisory service Gurdaspur)

Global Nuffield farming Scholars from Canada/Ireland/New-Zealand & Australia (Guests at PAU Kisan Mela) have seen Gro. More Rice Plots “PAU & Syngenta have jointly taken a good initiative with Rice project This will surely enhance rice productivity. Farmer will surely get a yield increase of 20 -30%. ” Brenda Schlepp 2012 Scholar Canadian Nuffield Agricultural Scholar “Hopes of new revolution will come in future with the increase of plant population /m² More Seedling …More crop/Yield Good initiative. Keep it up Mr. P. P. S. Pangali (President PAU kisan Club) 32 “It is seen first time the way farmers are being advise in such a good manner. ” Jemma Sadler 2012 Scholar , Wongan Hills in Western Australia, “It is amazing to see the difference between the Gro. More Rice Plot & Farmer practice field. The Gro. More Plot is completely free of pest & Farmer Practices was fully damage with pest” Robin Schaefer, Loxton in South Australia

Farmer excited to see the Max. Wheat project results 33 Classification: INTERNAL USE ONLY

Max. Wheat Project- Agronomy information gave to growers 34 Classification: INTERNAL USE ONLY

Safety / Application message…. . In all the farmer meeting. . 35 Classification: INTERNAL USE ONLY

Gro. More Rice Approach…. Easy to understand Seedling phase Vegetative Establish yield & quality foundation Reproductive Max. yield potential Ripening Protect quality Strong & Healthy Strengthen the Turn hope into Maximize yield foundation expectation reality and quality 36

Thank You! 37