It gives me great pleasure to address you all as we collectively continue to navigatethrough the challenges posed by the pandemic. We express our gratitude to all those withwhose support India managed to quickly return to the growth path.
The relentless commitment and dedication of every member of the Rallis family helpedour business navigate through the many challenges of the past year. Even while wemanoeuvred the challenges our focus remained steadfast on the health and safety of ourpeople and the adoption of appropriate COVIDRs 19 protocols across locations. The Companyencouraged all the employees to get vaccinated and to leverage the vaccination drivesinitiated by Tata Group companies.
As we celebrate "Azadi Ka Amrit Mahotsav" this year we continue to beproud of our nation's past achievements and remain confident of advancing further on thepath of progress. We are proud of our association with the Indian farming community andsalute the spirit as well as the conscientious and tireless efforts of millions of Indianfarmers who continue to ensure India's food security.
Importance of agriculture to economy
With a 4% share of global GDP the value addition generated by agriculture and alliedsectors is estimated at USD 3.5 trillion. It is gratifying to note the dual roleagriculture has been playing in providing food security to the global population andemployment to large sections of the society as it continues to remain the second largestsource of employment worldwide after the services sector.
Agriculture has been the primary source of livelihood for more than 50% of India'spopulation and represent around 16% of the country's Gross Domestic Product. It is indeedworth pointing out that agriculture largely remained unaffected in India during the courseof the COVID-19 pandemic and a 3.3% growth in FY 2021-22 is estimated which is similar tothe previous fiscal year of FY 2020-21.
With an increased thrust on sustainability globally we foresee further intensi_cationof agricultural activity for biofuels an alternative to fossil fuel. The Government ofIndia has advanced ethanol blended petrol target timeline to 2025 from 2030 and this willincrease dependency on agriculture for biofuels in India as well leading to higher areasunder cultivation of crops such as Sugarcane Maize etc.
With customer-centricity as one of its values Rallis will continue playing apioneering role in agriculture. Our single-minded aim is to help millions of farmersachieve prosperity with our diversified and innovative portfolios of Crop Protection CropNutrition and Seeds.
Foodgrain production at record high in FY 2021-22
The Southwest monsoon which is critical for agricultural activities in India wasnormal for the year being the third consecutive year of above or near normal rainfall.This provided huge benefits to agriculture aiding total foodgrain production estimated at316 million tonnes as against 311 million tonnes in the fiscal year 2020-21.
In this challenging environment the Consolidated Revenue from Operations continued togrow to Rs 2604 crore in FY 2021-22 compared with Rs 2429crore recorded in the previous year
Crop protection market development
Strong commodity prices fuelled demand and price increase to offset input costescalation steered growth in the global crop protection industry. Global crop protectionmarket value (including non-crop usage) crossed USD 73 billion in the calendar year (CY)2021 compared to USD 69 billion in CY 2020. This also benefited the export business ofdomestic companies including that of Rallis. Global crop protection market continues to bebuoyant but growth is expected to be slightly moderated in CY 2022 with gradual softeningof input prices.
The domestic crop protection industry continues to be impacted by input availabilityespecially of material sourced from China cost escalation and freight cost increases.Nevertheless relevant actions by your Company and the Indian industry in general are seenaddressing these challenges in the short and medium term. In 2021-22 uneven and delayedpick-up of monsoon and unseasonal rains resulted in missed spraying of crop protectioninputs. There were also crop shifts in high-input-use crops such as cotton and groundnutwhich impacted sales during the Kharif season. The domestic crop protection industry isexpected to have registered a nominal growth in top-line in FY 2021-22 along with margincontraction.
At Rallis we responded to the challenging environment through effective sourcingfrequent pricing decisions an acute cash focus agile internal and external coordinationwith logistics partners and optimising operating expenses among other strategies.
In this challenging environment the Consolidated Revenue from Operations continued togrow to Rs 2604 crore in FY 2021-22 compared with Rs 2429 crore recorded in the previousyear. Despite of our best efforts to offset cost increases the Profit After Tax was Rs164 crore compared to Rs 229 crore achieved during FY 2020-21. Growth in the Crop Carebusiness was buoyant at 11% with margins coming under pressure due to steep costinflation. We continued our strong performance in the Crop Nutrition business byregistering a 20% growth over the previous year. The Seeds business had a challenging yearand reported degrowth of 13% impacted by both internal and external factors. The measuresundertaken by the management are expected to address the challenges of the Seeds businessand achieve sustainable profitable growth in the near and long term.
To drive future growth we will intensify our focus and investments towards increasingour manufacturing capacities product portfolio expansion and digital initiatives. We willalso intensify our marketing investments to improve reach and visibility of our products.
Even as we visualise a promising future efforts are underway to align and integrateour goals with the Environment Social and Governance (ESG) aspects to build innovativebusiness models.
Your Company has undertaken an ambitious initiative "30 by 30" targeting 30%absolute reduction of carbon emission by the year 2030.
Recent unfortunate geopolitical developments in Europe are directly and indirectlyimpacting the global economy including the agriculture sector which withstood the COVIDRs19 challenges to a greater extent. We are optimistic yet cautious in managing associatedrisks which are too early to predict.
I extend my sincere appreciation to my fellow Board members the leadership teamemployees our suppliers and business partners for their continued support which hashelped us serve our customers even better during these challenging times.
I would like to thank all our shareholders and look forward to your continued supportand guidance as the Company progresses towards its mission of Serving FarmersThrough Science' in the coming years.