I am pleased to present you the 34th Annual Report of your company for the year2020-21. This was a year of extreme economic challenges for the world. Adversecircumstances occurred which are beyond control due to the novel COVID-19 your Companyalso faced tremendous challenges during the year.
The economies of both developed and emerging countries had a slowdown leading to achallenging financial scenario. Various growth factors including global manufacturingwere quite muted for a major portion of 2020. The macro-economic factors that caused aslowdown in FY 2019-20 which continued in FY 2020-21 with the first quarter of FY21completely washed away by the pandemic and the subsequent lockdowns.
|Crops ||2020-21 (MT) |
|Rice ||121.46 |
|Wheat ||108.75 |
|Total Cereals ||279.87 |
|Total Pulses ||25.58 |
|Total Food grains ||305.44 |
|Total Oil Seeds ||36.57 |
|Sugarcane ||392.80 |
|Cotton (million bales of 170 kg each) ||36.49 |
|Jute & Metsa (million bales of 180 kg each) ||9.62 |
Kharif rice production is estimated at a record high of 104.3 million tonnes. A sharpexpansion in area sown contributed to the increase in production even as yield declined.The Ministry of Agriculture and Farmers' Welfare released its third advance estimate formajor crops produced during the kharif and rabi season of 2020-21. It estimated foodgrainproduction at 305.4 million tonnes during 2020-21 compared to 297.5 million tonnes during2019-20. Output was also revised upwards from the second advance estimate of 303.3 milliontonnes. This is the highest-ever foodgrain production in the country.
2020-21 was the fifth successive year of an increase in food grain production. From275.1 million tonnes during 2016-17 foodgrain output reached 305.4 million tonnes during20202021. Foodgrain production increased in both the kharif and rabi seasons of 2020-21.Kharif production also increased for five years in a row whereas rabi production increasedduring four of the five years ending 2020-21.
Government's Budgetary Support:
Agriculture sector has been allocated Rs 131531 crore in 2021-22. Allocation to thesector accounts for 4% of the central government's budget. This allocation is ~6% higherthan the revised estimate for 2020-21 the allocation of Rs 65000 crore to PM-KISAN(income support scheme for farmers) for 2021-22. For 2020-21 the scheme was allocated Rs75000 crore at the budgeted stage which has now been revised down to an estimate of Rs65000 crore due to coverage of lower beneficiaries than initially estimated. PM-KISANaccounts for 49% of the allocation to the agriculture sector in 2021-22. Other expenditureitems of the Ministry including interest subsidy for short-term credit to farmers andPradhan Mantri Fasal Bima Yojana have been allocated 27% in 2021-22.
A turbulent Year for Super Crop Safe :
e Due to the global pandemic COVID-19 the entire world is facing broken supply chainissues. Super Crop had also faced distribution and logistical problems this hasconsiderable impact on the sales
e Majority of the technical grade raw material is imported from China but due to breakdown supply chain the import of raw material was also put on halt. This problem has hitthe first few quarters of FY21 for the Company
e The results suggest that the pandemic had caused massive dislocation among smallCompanies just several weeks after its onset and prior to the availability of governmentaid through the Coronavirus Aid and Relief Packages
e The Company lost its Managing Director Mr. Nitin Patel during such a turbulent time.This sudden loss created a chaotic situation and acted as one of the factor contributingto the worst year for the Super Crop Safe
Future Growth Prospects
The Company management had worked on the strategies to revive the business and put itback on the right track of growth. Hence in the forthcoming year the Company will seeprosperous growth. The management consider the loss of one of the key member of theCompany as one the major risk and figured out the way to mitigate such risks in thefuture.
We are working hard constantly to expand all over India and present our products to alarger audience. Currently we are in more than eight states with 2100+ distributors in theNorth West and Central zones. We are constantly concentrating on entering newgeographies and launching 3-4 high margin and high demand products every year thecompany is looking to improve its margin. The focus is also on increasing the distributornetwork from 2100 to at least 4000 by the year 2023. Our honorable Prime minister ShriNarendra Modiji has announced the "Atman- irbhar Bharat Abhiyan". It will behuge opportunity for the technical grade manufacturers in India.
I would like to extend my sincere gratitude to all our stakeholders and the BoardMembers whose confidence and faith in the management has kept Super Crop going well allthese years. The same will be required for years to come for realising our vision andensuring the growth of the industry.
|Ishwar Patel |
|Chairman Super Crop Safe Limited |