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Dhanuka Agritech Ltd.

BSE: 507717 Sector: Agri and agri inputs
NSE: DHANUKA ISIN Code: INE435G01025
BSE LIVE 15:25 | 08 Dec 685.25 0.75
(0.11%)
OPEN

682.60

HIGH

687.55

LOW

681.65

NSE 10:18 | 11 Dec 682.15 -2.40
(-0.35%)
OPEN

695.00

HIGH

695.00

LOW

678.20

OPEN 682.60
PREVIOUS CLOSE 684.50
VOLUME 508
52-Week high 940.00
52-Week low 631.15
P/E 28.07
Mkt Cap.(Rs cr) 3,365
Buy Price 682.35
Buy Qty 16.00
Sell Price 685.25
Sell Qty 3.00
OPEN 682.60
CLOSE 684.50
VOLUME 508
52-Week high 940.00
52-Week low 631.15
P/E 28.07
Mkt Cap.(Rs cr) 3,365
Buy Price 682.35
Buy Qty 16.00
Sell Price 685.25
Sell Qty 3.00

Dhanuka Agritech Ltd. (DHANUKA) - Chairman Speech

Company chairman speech

In an effort to boost the agriculture sector the Indian government has set anambitious goal to double farmers' income by 2022. In doing so it has unveiled strategiesranging from irrigation to crop insurance. But if the food value chain is to undergo truetransformation it needs to move from a production-driven system to one driven by demandone that increasingly connects consumers with farmers. ‘Doubling Farmer's Income'will require integrated value chains that connect farm to fork competitive markets thatprovide better prices to farmers and an enabling environment that supports innovation andaction. From the crop life cycle to food in consumer's plate farmers play a major role aswell as farmers are most effected.

We are the 2nd largest country in agriculture production and GDP from agriculture issurpassing USA. Now the question is why not first? If we see average rainfall in ourcountry which is around 1000 mm while China their average rainfall is 600 mm but inspiteof this Chinese GDP from Agriculture is three times than our country. As per IMF theAgriculture production in 2014 it was 367 billion US dollars in our country while Chinawas 1005 Billion US dollar. Our Agriculture area is 142 million hectare and China is 128million hectare. India's arable land is much bigger than China's but then too China isenjoying its leading position in agriculture.

India's per hectare production (2 t/ha) is far less to several developed and developingcountries like USA (7 t/Ha) UK (7 t/ha) France (7.5 t/Ha) and Germany (7). Our net percapita /annum foodgrains availability in 2013 was 510.8 g nearly the same as in 1991(510.1g). Shift in consumption pattern has also increased demand of vegetables fruitsmeat & other poultry products. Rapid growth of these sectors can be even moreegalitarian and inclusive. What we need to do for these? We have to adopt the new farmer'sfriendly technology hybrid seeds judicious use of pesticides and fertilizers reduce thesupply chain barrier etc. Our DKKNT approach are focusing these all now it's time to trainand educate farmer regarding our DKKNT approach to minimize losses use of water per dropmore crop basis and the various way to increase production to be a leading country inagriculture.

In the order of our father of the Nation Shri Mahatama Gandhi's revolutionary thought “Liveas if you were to die tomorrow. Learn as if you were to live forever” Skillingis one of focus agenda of Government of India and it's a need too. All major developed anddeveloping countries are emphasizing skilled bases education system. In our organizationwe have introduced 2 year LEAP (Learn Evolve adopt and Perform) program for ouremployees especially for sales team so that they may serve better to our food provider andhelp them to increase their profit. We recognize the important role of Agri-input dealerand distributor in knowledge transfer from lab to land and sponsored one year diplomaprogram for Agri-Input dealer and distributor from three universities in Gujarat andcoming year we are replicating the same with MANAGE Ministry of Agriculture and FarmersWelfare institution too on large scale by subsidizing 50% fees per dealer.

In current scenario Indian agriculture currently face the challenge of having toproduce more from less for more to meet the needs of the growing human and animalpopulation under conditions of diminishing water resources and expanding environmentalstress. The current world population of 7.3 billion is expected to reach 8.5 billion by2030 9.7 billion in 2050 and 11.2 billion in 2100 according to a new UN DESA report“World Population Prospects: The 2015 Revision”. During 2015-2050 half of theworld's population growth is expected to be concentrated in nine countries India is oneof them listed according to the size of their contribution to the total growth. And onanother side India continues to have serious levels of widespread hunger forcing it to beranked a lowly 97 among 118 developing countries for which the Global Hunger Index (GHI)was calculated. With increasing population and hunger index graph we require 450 milliontones to feed our future generation till the year 2050. While other side crop losses dueto pests diseases weeds are pulling back our country's economic growth and production.

According to the 37th standing committee report by petroleum and chemicals(2002) thetotal losses caused by weeds insects diseases rodents etc in India is roughly 28% ofour production of food grains amounting Rs. 90000 crores over the year it may alsoincrease few more lacks. In other words the production of food grains in 2002-03 was 174.8million tonnes and the losses were amounting Rs. 90000 Crore with present MSP theselosses would be much more approximately Rs. 250000 to 300000 Crore per year. We can'tafford these losses therefore standing committee has recommended to increase the use ofherbicides and fungicide in its report.

Per hectare consumption of pesticides in India is amongst lowest in the world andcurrently stands at 0.6 Kg/Ha8 against 5-7 Kg/ha in the UK and at 20 time ~13 kg/ha inChina. In order to increase yield and ensure food security for its enormous populationagrochemicals penetration in India is bounds to go up. The demand of pesticides is cyclicin nature and is mostly influenced by timely rainfall and its distribution. In IndiaAndhra Pradesh (Including Telangana & Seemandhra) Maharashtra and Punjab are topthree states contributing to 45% of pesticide consumption. The top seven states togetheraccount for more than 70% of crop protection chemical usage in India.

Pesticides prevent our crops to weeds Insect pest and increase farmers income eventhen some NGOs urbanites environmentalists and media due to their own ulterior motivesand/or for reasons best known to them under the garb of saving environment human concernand safety have been voicing hoarsely against use of pesticides for raising crops.Recently there was an NGO report where they said in vegetables and fresh fruits residueof banned pesticides like Aldrin Dieldrin Heptachlor and Chlordane. These pesticideshave already been banned in India about 30 years ago then there is no chance to getresidues of these pesticides in fresh fruits and vegetables. The Amicus Curiae constitutedby The Delhi High Court has also submitted its report. According to All India NetworkProject on Pesticide Residues Ministry of Agriculture and Farmer Welfare Government ofIndia analysis no residue of above pesticide has been found in any of the sample.

As per the analysis of more than 113000 samples by All India Network Project onPesticide Residues Ministry of Agriculture and Farmer Welfare GOI 98% was safe and only2% sample was found above MRL much lower than the other country like USA was 2.2% (during2008-13) U.K. 3.4% (during 2008-14) and EU 5.0% (during 2011-13). It proves that thereport of NGO is biased and totally wrong. We should also note that not even singlepesticide product is listed as a human cancer causing chemical in Group I in the Registryof International Agency on Research on Cancer (IARC). If we see the history chlorinatedpesticides like DDT & BHC came first which were used in KGs and later on OP Compoundcarbamats were introduced which were used in low dose compare to chlorinated pesticidesthen Synthetic Pyrethroids has come it was very safe and used in low dose after thatneonicotinoids were launched. The industry is continue working and bringing new technologyto put minimum burden on environment.

Apart from plethora of media reports by environmental NGOs Greenpeace had recentlymaligned the Indian Tea Industry by publishing some unfounded atrocious residue data. Theywere challenged but could not substantiate their data. These NGO used to insist on thesale of organic products but many of these products which the so-called organic foodwhich should be totally free of pesticides have more pesticides than crops grown undermodern agriculture with application of pesticides. Analysis of 166 samples by GovernmentLaboratories (AINPPR ICAR) showed that 27% samples contained pesticide residue in these4.8% of organic vegetable samples had pesticide residue above MRL. “There are 6.6billion people on the planet today. With organic farming we could only feed fourbillion of them. Which two billion would volunteer to die?” Norman Borlaug said.

As you all know we have the Big-B Shri Amitabh Bachchan Super Star of Indian Cinemaas our Brand Ambassador and is endorsing products. Most of you must have seen TVAdvertisements which are telecast on National News channels as well as regional primechannels. It will also help in creating awareness among farmers to judicious use ofpesticides with updated technology to increase their profit.

Water is our life line we may go for more than three weeks without food but water is adifferent story. Rain Water Harvesting is one of the major focused area of government ofIndia last year government has constructed 5 lakh ponds and planned for 5 lakh more pondsin financial budget and also approved a Rs.50000 crore irrigation package and took thefirst step to create a E National Market (E NAM) for agricultural produce. With the sameobjective we have already constructed 4 check-dams in Rajasthan. Rural community (about25000) is taking benefits and using this water for farming and their daily use. Werecently signed MOU with PHDRDF for 5the check-dams in Kotputali in Rajasthan. Apart fromthis we also Constructed CWC (Community Water Center) in association with NaandiFoundation in Rajasthan where rural people will get pure & safe drinking waterthroughout the year.

Future is unpredictable but prevention is better than cure these two sentence areperfectly resemble to Indian agriculture. Weather is uncertain pests diseases and weedsare unknown and water is alarming but then too selecting crop according to soil healthjudicious use of pesticide and fertilizer farmer friendly technique best storagecapacity are the core solutions for securing food for future.

R. G. Agarwal

Chairman