Transcript Mr R Prabha - Indian Banks' Association
Agri-business Financing-New Credit Products-New financing opportunities
By Mr.R.Prabha,General Manager,Canara Bank Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Introduction
• Food production in India has been stagnating since 2001-02.
•It is time we started the next round of green revolution • Agri Business and Agri Processing should drive the second round of “Green Revolution” with diversification of crop production.
• Developed countries have converted their agriculture into Agri Business.
• India is in the threshold of transforming its agriculture into Agri business.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Introduction…
contd India is the second largest producer of fruits and vegetables in the world.
It has a huge emerging domestic market with the change of lifestyle of middleclass and high potential for exports to developing as well as developed world.
Agri Business to create job opportunities in rural areas.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Transformation of Agriculture into Agri Business – major issues
Policy Initiatives Technology Investment Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Financing opportunities in Agri Business – strength of Indian Banking Vast outreach - a Branch network of 68116 with an average population per Bank Branch of 16000 Rural 31958 Semi Urban Urban Metropolitan 15375 11498 9285 High domestic saving rate of 28.1% of GDP Deposits – USD 400.77 billion (Rs.1753174 Crores) * Advances – USD 264.67 billion (Rs.1157807 Crores) * Specialized Branches and experienced personnel Leverage the strength of banking for investing in Agri Business/ Agro Processing/Food Processing.
* Conversion rate adopted is 1 USD = 1 INR 43.745
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Indian Agri- Business as an investment opportunity Corporates – Both Indian and Multinational – identifying agro processing as an opportunity.
Scope for Joint ventures with global players.
Investment by venture capitalists.
Huge potential for infrastructure creation like
cold storages, chilling plants, market yards and handling facilities.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Financing opportunities for Commercial Banks Post harvest management 1/3 rd of fruits and vegetables produced in the country are wasted due to poor cold storage and handling facilities.
Cold storages – controlled atmosphere cold storages
for fruits and vegetables.
Milk chilling plants
Refrigerated vehicles
Creation of
market yards
and other infrastructure Financing
quality testing and certifying agencies
Labeling and Packaging industry
Food parks with common facilities for storage, effluent treatment etc.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Post Harvest Management – financing opportunities
Finance against goods stored in warehouses
Collateral Management Companies.
– in association with
Bill discounting facilities
to
agriculturists
against acceptance of Bill of Exchange by the purchasing company.
Opportunities in
price risk mitigation
using
commodity derivatives
.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Agro Based Industries – financing opportunities Contract farming Sugar cane Cotton Broiler Poultry Seed Production Grapes Vegetables Gherkins Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Agro Based Industries – financing opportunities Project Financing Appraisal of Projects Syndication of Loans Long term Loans in local currency and foreign currency for buildings, 1:2 to 1:3.
machinery, technology with debt equity ratio of
Working capital facilities Export financing Term Loans for Upgradation of existing units to adopt modern technology/HACCP / EUREP GAP Standards
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Agro Based Industries – financing opportunities Some examples Meat and meat products Marine exports Egg powder Vineries Seed production Bio Technology Fruits and vegetables processing Food grain processing Extraction of oleoresins Natural dyes Extraction of aromatic compounds Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Agro based industries – emerging opportunities Processing of vanilla for extraction of vanillin Conversion of sugar cane to ethanol Extraction of bio-diesel Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
Agri Business - Other opportunities for banks Channel financing and financing modern retail outlets IT kiosks in rural areas Private Agri -extension initiatives Organic farming Consultancy for project formulation and appraisal – as a fee based activity Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”
TO SUM UP…
Transforming Agriculture into Agri-business and value addition of agricultural products is a huge opportunity for developing countries like India, which has the potential to transform its business landscape .
With low labour cost, varied climatic conditions and diversity of crops, India has the potential to emerge as the food processing centre of the world.
There is a need to bring in world-class technology and infrastructure in food processing through a co-ordinated effort by the Government, Corporates, entrepreneurs and the financial institutions.
Banking Industry in India, particularly Canara Bank as a major Bank in the Public Sector, is committed to make this happen.
Presentation by R.Prabha, General Manager, Canara Bank on “Agri Business Financing – New Credit Products – Financing Oppprtunities ”