A perspective on agricultural and trade issues of India … 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 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) per person Most populous countries have least room to expand Hectare of Arable Land Over the past four decades the amount of land under cultivation, including permanent crops, has increased by more than one quarter – to just over one billion ha. However, the rapid growth of population in recent years has meant that the area of cultivated land per capita in developing countries has declined by almost half since the 1960s. More than 90 percent of available land is in Latin America and Sub-Saharan Africa, which means that further expansion is simply not an option for most of North Africa, Eastern Europe, Asia and Middle East. Even in those areas where potential for expansion does appear to exist, over 70 percent of available land is estimated to suffer from one or more soil or terrain constraints. As a result of these factors, the projected expansion in cultivated area in developing regions to 2030 is only half the historic rate – adding about 120 million ha to the current total 31. Strikingly, however, by the year 2030, and despite the addition of well over two billion people to the population of developing countries, the average amount of cultivated land available for each person engaged in agriculture may actually increase due to the stabilisation of agricultural populations. Source: UN and FAO, 2005

There is also the problem of…. Decreasing size of landholding 86% growers in India are smallholders They cultivate 44% of the land and contribute 50% to farm output Landholding declined from 2.30ha in the 70s to 1.32 ha in 2000-01 Average size would be a mere 0.68 ha in 2020 and 0.32 ha in 2030

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 over-exploitation and mismanagement of soil-and-water resources

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 Agriculture is India’s largest user of water. However, increasing competition for water between industry, domestic use and agriculture has highlighted the need to plan and manage water on a river basin and multi-sectoral basis. Major areas of concern in irrigation are: decline in real investment, thin spread of investment, low recovery of costs, decline in water table, wastages and inefficiencies in water use and, non-involvement of users 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 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

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

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 1/6th 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).

Agriculture productivity in India - 1970 to 2010 Crop 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

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; Rice 106 million tonnes Wheat 96 million tonnes Coarse Cereals 41 million tonnes Pulses 20 million tonnes Oilseeds 20.9 million tonnes Sugarcane 29.9 million tonnes

Indian Agriculture – Strong regional variations in yield Crop 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

Indian Agriculture – Present Scenario (SWOT) WEAKNESS Fragmentation of land Low Technology Inputs Unsustainable Water Management Poor Infrastructure Low value addition THREATS Unsustainable Resource Use Unsustainable Regional Development Imports small and shrinking holding size (1.16 ha in 2010-11); climate variability...high risk. STRENGTHS Rich Bio-diversity Arable land Climate Strong and well dispersed research and extension system OPPORTUNITIES Bridgeable yield crops Exports Agro-based Industry Horticulture Untapped potential in the North Eastern part of India But the future is safe and optimistic for the next decade and more

10 challenges faced by agriculture in India 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

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

Our Strategy Integrate Innovate Outperform Our strategy has growers’ needs at its heart Create integrated offers supported by agronomic expertise and understanding of growers challenges Integrate Innovate 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 Outperform

17,000 trainings for farmers in 2012 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

Our Collaborations Rice ICS project with PAU Participating in 2nd Green Revolution In Eastern States Partnering with Punjab Agriculture University (PAU) Collaborating with India’s biggest cooperative MARKFED Grape Project with National Research Centre (NRCG) Food Security Agenda GRES: In an effort to become ‘partners in progress’ in India’s agricultural growth, Syngenta is participating in the Government of West Bengal initiative to bring the Second Green Revolution in Eastern States. Through the project we seek to enhance rice output with hybrid paddy, responsible use of pesticides and integrated pest management in rice cultivation. Syngenta’s project partners are the government of India’s Department of Agriculture & Cooperation, West Bengal’s Agriculture Department and CropLife India, part of global federation representing the plant sciences industry. MoU with Punjab Agriculture University (PAU): PAU is India’s leading farm university. It played a key role in bringing about the Green Revolution in Punjab and is an institution respected by farmers. Under its public-private partnership program, PAU had first signed a MoU with Syngenta India in October 2008 and again in October 2011 to jointly undertake projects aimed towards sustainable development. PAU and Syngenta have a singular aim, that of enhancing productivity and quality of farm produce in Punjab by adopting latest technology in key crops like Rice, Wheat and Potato. GrowMore project: After the announcement of Syngenta’s integrated crop strategy in early 2011, the Global and South Asia Territory Rice teams set out to understand the pain points of the rice growers in order to arrive at a holistic solution. The outcome is GroMore which has proved to be an excellent fit in not only addressing the pain points of the farmers but also to address the food security challenge for an important crop like rice. This project in the North is a collaborative approach with PAU. Other Projects with PAU: * Demonstrate 3R strategy to farmers: Right dose, at the Right time and with Right application technology. To educate farmers and applicators. • Corn Project: We undertook a comprehensive economic benefit study to help guide growers to adopt corn as a superior alternative over rice as well as in Corn-Potato-Corn rotation. • Wheat Project: This project aims to find the right program to effectively control resistant Phalaris and educate growers on how to effectively manage it with the right scientific method. • Potato Agronomy Project: This project considers productivity and quality enhancement through right agronomy and effective disease management in Potato. Its objective is to educate growers on overall agronomical practices at the key critical stages of Potato cultivation. • Herbicide Application Technology: The project demonstrates the use of new herbicide Axial in the control of Phalaris minor in wheat. The aim is to popularize herbicide technology spraying techniques and to enhance the productivity of Rice-Wheat cropping system. It has resulted in average yield increase of 13.6 per cent. MoU with MARKFED: To reach out to small land holding farmers, Syngenta has joined hands with one of the biggest cooperatives in Asia, MARKFED. Syngenta is able to offer its solutions and services from nearly 3064 cooperative societies managed by MARKFED. Its societies and retail outlets at various locations of Punjab provided the best channel to reach out to the growers. MoU with CIMMYT: CIMMYT (International Maize and Wheat Improvement Center) in India and Syngenta have been working together to develop multiple projects focused on wheat research activities. These are aimed at increasing cereal productivity by accelerating adoption of new genotypes, improved seed systems and improved crop management technologies including conservation agriculture. Grape Project with NRCG: Syngenta in association with National Research Centre for Grapes (NRCG) Pune has conducted a 2-year research project to establish and demonstrate effective pest and disease management in grape cultivation, using different crop protection products of Syngenta, to ensure quality grape production free from pesticide residues and which can be accepted into the high quality European market. The Food Security Agenda focuses on business models that address smallholder farmers and environmental sustainability. One such business model is being piloted in Odisha in rice growing smallholder areas. The model has Village Entrepreneurs who are 24x7 partners to growers. They provide advisory services to the growers and supply them with products made available from a “Centre of Excellence” established by Syngenta and partner organizations having allied products. Each entrepreneur covers about 500 farmers in 15-20 villages. New Vision for Agriculture: Syngenta is also participating in the World Economic Forum’s New Vision for Agriculture (NVA) initiative with the Maharashtra government to improve productivity in vegetable production.

Corporate Social Responsibility Me & Mine addresses working conditions on seed farms We conduct HSE training for growers through Me & Mine Sparsh contibutes to education, skill development, women empowerment in Goa Syngenta Krishi Mitr gives innovative crop solutions to growers Syngenta Foundation India helps and trains smallholders Preserving the environment at our global supply base in Goa ‘Syngenta Me and Mine’: Improving quality of life in rural India. Syngenta’s flagship program “Syngenta Me and Mine” addresses working conditions on seed supply farms. It aims to eradicate child labor and unjust working conditions in the seed production farms. Preserving the Environment: Our global supply base Santa Monica Works (SMW) in Goa manufactures high quality, safe and technologically advanced crop protection agents. We have a scientifically designed effluent treatment plant where effluent is neutralized in a fully automated process and is subjected to bio-degradation by extended aeration method. A wild life sanctuary of birds and reptiles in the midst of our works is a source of pride for us and the show piece for everyone who visits Santa Monica. Sparsh: Santa Monica Works runs a CSR program Sparsh which contributes to areas of education, skill development, waste management, health and hygiene, women empowerment and support to socio cultural initiatives in the local community. Syngenta Krishi Mitr was established in April 2010 with the purpose of engaging with the Goan Agriculture Community by developing a positive attitude towards agriculture using innovative crop solution and good agriculture practices. This helped to increase yield & quality of produce, contributing to economic growth & improved quality of life of the farming community. Syngenta India limited set up the Syngenta Foundation as an independent organization in 2005 to help marginalized farmers adopt new ways of agricultural production to enhance yield, and help in improving their livelihoods. The Foundation is working with a number of local NGOs and other associations on resource conservation and crop enhancement projects to provide long term productivity and income generation for the farmers.

The Good Growth Plan India

Help biodiversity flourish Look after every worker The Good Growth Plan More food Less waste More biodiversity Less degradation Rescue more farmland Improve the fertility of 10 million hectares of farmland on the brink of degradation Help biodiversity flourish Enhance biodiversity on 5 million hectares of farmland More health Less poverty Look after every worker Strive for fair labor conditions throughout our entire supply chain network Empower smallholders Reach 20 million smallholders and enable them to increase productivity by 50% Help people stay safe Train 20 million farm workers on labor safety, especially in developing countries Make crops more efficient Increase average productivity of the world’s major crops by 20% without using more land, water or inputs We are launching The Good Growth Plan which includes six specific commitments to address critical challenges the world faces in feeding a growing population. By 2020, we commit to: Make crops more efficient: Increase average productivity of the world’s major crops by 20 percent without using more land, water or inputs Rescue more farmland: Improve the fertility of 10 million hectares of farmland on the brink of degradation Help biodiversity flourish: Enhance biodiversity on 5 million hectares of farmland Empower smallholders: Reach 20 million smallholders and enable them to increase productivity by 50 percent Help people stay safe: Train 20 million farm workers on labor safety, especially in developing countries Look after every worker: Strive for fair labor conditions throughout our entire supply chain network One planet. Six commitments.

India Examples GroMore 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.

Joints projects with PAU  “ Popularsing recommended agronomic practices of crop viz Rice,Corn,Wheat & Potato” Major PROJECT GroMore Rice / MaxWheat Classification: INTERNAL ONLY

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

Outlining GroMore 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 GroMore – 125 Acres Under GroMore Geography Central Plain Zone Sub Mountainous Undulating Zone Undulating Plain Zone Developing Amritsar Gurdaspur Developed Ludhiana Mixed Jalandhar Kapurthala Developing Geography 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

Total Grower Data – 173 (8 Sub Districts ) Data Summary Total Grower Data – 173 (8 Sub Districts ) ROI - Average yield increase value is R.22K/Ha over farmer practice with Rs. 3K/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

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

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

GroMore – Summary of officials'’ feedback I would like to thank Syngenta rice team for this kind of Unique initiative in our developing area of Rice. 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 team was recognized in annual PAU Kissan expo. We feel good to attend such knowledge dissemination meetings PAU Vice- Chancellor , Dir. of Agriculture Punjab, ADG IRRI, Head of PAU Kissan Club, PAU governing board members NABARD Team & Deptt of Agriculture officials Deputy commissioner Gurdaspur – Dr. A Trikha IAS 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 GroMore 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 “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 GroMore Rice Plot & Farmer practice field .The GroMore Plot is completely free of pest & Farmer Practices was fully damage with pest” Robin Schaefer, Loxton in South Australia “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)

Farmer excited to see the MaxWheat project results Classification: INTERNAL USE ONLY

MaxWheat Project- Agronomy informationinformation gave to growers Classification: INTERNAL USE ONLY

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

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

Thank You!