Topic 1

ABOUT COUNTRY OF STUDY: UKRAINE

INTRODUCTION

Ukraine ( ) transliterated Ukrayina, is a country in Eastern Europe. It has an

area

of

603,628 km2 (233,062 sq mi),

within Europe. Ukraine borders Russia to

making
the

east

it
and

the

largest country entirely

northeast, Belarus to

the

northwest, Poland, Slovakia and Hungary to the west, Romania and Moldova to the southwest,
and the Black Sea and Sea of Azov to the south and southeast, respectively. The territory of
Ukraine has been inhabited for at least 44,000 years, and is the prime candidate site for
the domestication of the horse.
In the middle Ages, the area became a key Center of East Slavic culture, as epitomized by the
powerful state of KievanRus'. Following its fragmentation in the 13th century, the territory of the
present day Ukraine was contested, ruled and divided by a variety of powers, including
Lithuania, Poland, Ottoman Empire, Austro-Hungary, and Russia. A Cossack republic emerged
and prospered during the 17th and 18th centuries, but Ukraine remained otherwise divided until

its consolidation into a Soviet republic in the 20th century, becoming an independent state only
in 1991.
Ukraine has long been a global breadbasket because of its extensive, fertile farmlands. In 2011, it
was the world's third-largest grain exporter with that year's harvest being much larger than
average. Ukraine is one of the ten most attractive agricultural land acquisition regions. The
country also has a well-developed manufacturing sector, particularly in aerospace and industrial
equipment.
Ukraine

is

a unitary

republic under

a semi-presidential

system with separate

powers: legislative, executive, and judicial branches. Its capital and largest city is Kiev. Since
the dissolution of the Soviet Union, Ukraine continues to maintain the second-largest military in
Europe, after that of Russian Federation, when reserves and paramilitary personnel are taken into
account. The country is home to 45.4 million people (including Crimea), 77.8% of whom
are Ukrainians by ethnicity, and with a sizable minority of Russians (17%), as well
as Romanians/Moldovans, Belarusians, Crimean Tatars, and Hungarians.
Ukrainian is the official of Ukraine; its alphabet is Cyrillic. Russian is also still widely spoken.
The dominant religion in the country is Eastern Orthodoxy, which has strongly
influenced Ukrainian architecture, literature and music.

Capital and largest city

: Kiev (5027N 3030E)

Official languages

: Ukrainian

Ethnic groups (2001)

: 77.8% Ukrainians
17.3% Russians
4.9%

Demonym

others/unspecified

: Ukrainian

Government

: Unitary semi-presidential constitutional republic

- President Petro :Poroshenko
- Prime Minister :ArseniyYatsenyuk
-Chairman of Parliament :OleksandrTurchynov

Legislature

: VerkhovnaRada

Formation

: - KievanRus in 882

-Ukrainian National Republic on 7 November 1917

- West Ukrainian National Republic on 1 November 1918
- Declaration of Ukrainian Independence on 30 June 1941
- Independence from the Soviet Union on 24 August 1991

Area : Total 603,628 km2 (46th) / 233,062sq mi and 7% Water

Population

- 2015 estimate 44,429,471 (32nd)

- 2001 census 48,457,102

GDP 2013 estimate - 130,660Million USD

Calling code

: +380

ISO 3166 code

: UA

Internet TLD

: .ua / .

GEOGRAPHIC LOCATION

Ukraine has a strategic position in Eastern Europe, bordering the Black Sea in the south,
Poland, Slovakia and Hungary in the west, Belarus in the north, Moldova and Romania in the
south-west and Russia in the east.

LANGUAGES
Official

Ukrainian

languages
Recognized

18 languages : Armenian, Belarusian, Bulgarian, Crimean, Tatar,

regional language Gagauz, German, Greek, Hungarian, Karaim, Krymchak,

Moldovan, Polish, Romani, Romanian, Russian, Rusyn, Slovak,

Yiddish

CURRENCY & EXCHANGE RATES

Currency of is Ukrainian hryvnia (UAH).
1 rs = 0.015 USD
1 Ukrainian Hryvnia equals 0.047

USD

Religions
Ukraine in religious geography lies on the boundaries separating Roman Catholic, Eastern
Orthodox and Islamic spheres
Catholic Lithuania and Poland,

of

influence.
of

Traces

Kievan

of

the

cultural

influence

and Muscovite Orthodoxy,

of
and

of Tatar and Ottoman Islam combine with the Soviet legacy of promoting atheism to shape the
various present-day beliefs and professed beliefs of Ukrainian citizens.

Chart Title
Irreligious

27%

6%

Eastern orthodoxy

1%1% 3%

Catholicism
63%

Protestantism
Islam
Other religions

FLAG OF UKRAINE

Ukraine National Anthem Lyrics in English

Ukraine's Glory Has Not Perished
Ukraine's freedom has not yet perished, nor has her glory,
Upon us, fellow Ukrainians, fate shall smile once more.
Our enemies will vanish like dew in the sun,
And we too shall rule, brothers, in a free land of our own.
CHORUS
We'll lay down our souls and bodies to attain our freedom,
And we'll show that we, brothers, are of the Cossack nation.
We'll stand together for freedom, from the Syan to the Don,
We will not allow others to rule in our motherland.
The Black Sea will smile and grandfather Dnipro will rejoice,
For in our own Ukraine fortune shall flourish again.
CHORUS

Our persistence and our sincere toils will be rewarded,

And freedom's song will resound throughout all of Ukraine.
Echoing off the Carpathians, and rumbling across the steppes,
Ukraine's fame and glory will be known among all nations

ECONOMIC SCENARIO
Reforming institutions, strengthening the economy after the crisis

Despite the current crisis, its geography, strong natural resource base and human capital make
Ukraine well placed to leverage the next phase of globalization defined by a soaring middle
class in emerging markets and achieve high levels of prosperity. Through a year-long strategic
dialogue process, more than 300 decision-makers, government, business, and civil society
leaders as well as leading experts sketched out different pathways for Ukraines future economic
development.

Adapting to Shifting Geographies of Demand in the Global Economy

As demand for some of Ukraines traditional exports wanes, and emerging markets transition to
greater domestic consumption, Ukraine needs to reposition itself in global markets and retool its
economy in line with such transformations.
Fostering Higher Levels of Value Creation in the Ukrainian Economy
Across all sectors of the economy, significant new investments are needed to increase
productivity and technology adoption, which in turn requires supportive institutions and a
competitive market environment.
Reducing Energy Intensity and Ensuring Reliable Access

As one of the most energy intensive economies in the world, that is also highly reliant on energy
imports, the country urgently needs to focus on a reliable investment climate with a special focus
on the reform of energyprices

POLITICAL STABILITY
Institute for presidency became the core of development, political decision-making and political
control over their implementation. 2012 will be a time of V. Yanukovychs personal political
influence against the background of some groups strengthening positions within the
redistribution of property.

Interviewed by UCIPR between January 10-16, 2012 experts do not predict radical shifts in
policy, environment or in public process for 2012. About 50% of respondents believe that none
of

the

expected

in

2012

factors

will

change

the

existing

situation

greatly.

The strongest factor of influence in the alignment of political forces is the parliamentary
elections of 2012. But they will not be driving radical changes in political environment, oriented
to the capitalization of their own political and economic assets and barely divided monopolized
power system. So this campaign and election results will determine the measure of influence of
each of the interest groups within the "pecherski hills" due to a high inter-lite competition for a
place in decision-making system.
Reform of political system planned during the constitutional reform also unlikely leads to
changes of power groups in politics. It can be used to search for a new format of the legitimation
of these groups. However, the lack of a public ability to develop constitutional amendments at
this stage doesnt allow to talk neither about specific parameters of the political system and basis
of the social agreement itself nor about the timing of this reform.
Influence of low-institutionalized party system to provide a higher level of public nature of
decision-making and the formation of the agenda in politics would be negligible. The political
forces (parties, movements) will concentrate on elections.

A similar statement applies to moderate the impact of social movements. Although civic activity
takes place but it likely will not become concentrated and public protest movements will be
reorganized into parties and participate in elections.
The economic situation also does not undergo qualitative changes. Ukraine largely remains a
hostage of political risks such as non-public decision-making procedures, non-competitive
environment, poor compliance with legal regulations, and its socio-economic stability will highly
depend on attracting external funds.
The traditional practice of using pre-election populist proposals will adversely affect relations
with the IMF which in turn will shorten the field of opportunities to attract large amounts of
foreign investment.

LATEST NEWS AND DEVELOPMENT

Ukraine Crisis

Ukraine's acting President OleksanderTurchynov has accused Russia of deploying troops

to Crimea and trying to provoke Kiev into "armed conflict"

Russia has denied involvement. President Vladimir Putin said sides had to stop "a further

escalation of violence"
It comes amid unconfirmed reports that Russian planes have flown hundreds of troops

into the region

Nationalist protesters clash with police outside Ukrainian parliament
Russia's economy is being hit hard by sanctionsDivided over Ukraine, but US & Russia
band together to fight ISIS

The International Monetary Fund (IMF) has approved a $17.1bn (10.1bn) bailout for
Ukraine to help the country's struggling economy.

Ukraine's new government has said it needs $35bn (21bn) to pay its bills over the next
two years, which the new loans should mostly cover. It owes the Russian gas company
Gazprom $1.9bn.

The currency, the hryvnia, lost nearly a fifth of its value in February alone. It now stands
at 11 to the US dollar, down from eight in January.

The economy is struggling to recover from a recession and has been shaken by capital
flight, as worried investors move their money abroad.

Ukraine Development

Today countrys transportation infrastructure is made of 169.5 thousand km of highways,

21.7 thousand km of railways, 45 civil airports, 18 seaports and other transport facilities.
In recent years IT services industry has solidified its position as an important part of the
Ukrainian economy. Following the dramatic downturn caused by the financial crisis,

Ukrainian IT market increased by 40% in 2010 and by approximately 35% in 2011.

Cancellation of anti-Russian sanctions to depend on situation in Ukraine European.

Topic 2
Overview of Industries, Trade and Commerce in Ukraine

The economy of Ukraine is an emerging free market, with a gross domestic products. Ukraine
covers about 20 major industries, namely power generating, fuel, ferrous and non-ferrous
metallurgy, chemical and petrochemical and gas, machine-building and metal-working, forest,
wood-working and wood pulp and paper, construction materials, light, food and others. Industry
accounted for 26% of GDP in 2012. The country possesses a massive high-tech industrial base,
including electronics, arms industry and space program.
In 2012 Ukraine was the EU's 22nd largest trading partner and 19th largest export market (1,4%),
while ranked 26th by the volume of exports to the EU (0,8%). The main goods Ukraine exports to
the EU are ferrous metals, iron ore, electric machinery and cereals. The main goods the EU
exports to Ukraine are machinery, transport equipment, chemicals, textile and clothing, and
agricultural products.

Ukrainian exports to the EU are to a large extent already liberalized thanks to the Generalized
System of Preferences (GSP), which the EU granted to Ukraine in 1993. In 2011, total
preferential exports to the EU under GSP amounted to 16.8 % of overall Ukrainian exports by
volume. Preferential imports include machinery and mechanical appliances, plants, oils, base
metals, chemicals and textiles. Furthermore, there are sectors where the Most Favored Nation
(MFN) duty applied by the EU is already zero (around 42% of all agricultural products can be
sold duty-free by the Ukrainian exporters on the EU market). Existing quantitative import
restrictions on steel and textiles were cancelled on May 16 2008 when Ukraine acceded to the
WTO. Since then Ukraine enjoys unrestricted exports of steel and textiles to the EU.

The Russian Federation is Ukraine's largest trading partner, with 25.7% of exports and 32.4% of
imports in 2012. The EU is Ukraine's second largest trading partner, with 24.9% of exports and
30.9% of imports in 2012. An overcrowded world steel market threatens prospects for Ukraine's
principal exports of non-agricultural goods such as ferrous metals and other steel products.
Although exports of machinery and machine tools are on the rise, it is not clear if the rate of
increase is large enough to make up for probable declines in steel exports, which today account
for 46% of the country's overall exports.
On 17 December 2013 President YANUKOVYCH and President PUTIN concluded a financial
assistance package containing $15 billion in loans and lower gas prices. However, the end of the
YANUKOVYCH government in February 2014 caused Russia to halt further funding. With the
formation of an interim government in late February 2014, the international community began
efforts to stabilize the Ukrainian economy, including a 27 March 2014 IMF assistance package of
$14-18 billion.

List of industry

Agriculture

Apparel

Automobiles and motorcycle

Chemicals

Construction real estate

Electrical equipment supplies

Food beverage

Furniture furnishing

General industrial equipment

10 Health medical
11 Home garden
12 Manufacturing processing machinery
13 Minerals metallurgy
14 Packaging paper
15 Steel
16 Home appliances
17 Information technology
18 Fuel

19 Infrastructure
20 Tourism
21 Financing
22 Banking
23 Aircraft
24 Leather

Contribution of Industries in national GDP

The Gross Domestic Product (GDP) in Ukraine was worth 131.81 billion US dollars in 2014.
The GDP value of Ukraine represents 0.21 percent of the world economy. GDP in Ukraine
averaged 87.14 USD Billion from 1987 until 2014, reaching an all time high of 183.31 USD
Billion in 2013 and a record low of 31.26 USD Billion in 2000. GDP in Ukraine is reported by
the World Bank.

GDP
GDP - real growth rate
GDP per capita

$337.4 billion (2013 est.)

0.4% (2013 est.)
$7,400 (2013 est.)

GDP by sector
Agriculture
Industry
Services

9.9%
29.6%
60.5%

Import-Export statistic
Import:
Imports in Ukraine increased to 3879.50 USD Million in August from 2983.70 USD Million in
July of 2015. Imports in Ukraine averaged 4298.23 USD Million from 2001 until 2015, reaching
an all time high of 8822.90 USD Million in July of 2008 and a record low of 1025.20 USD
Million in January of 2002. Imports in Ukraine is reported by the State Statistics Service of
Ukraine.

Import goods
Machinery and equipment,
Chemicals

: Energy (mainly natural gas),

Main import partners

EU 39.1%

Russia 32.4%
China 9.3%
Germany 8.0%
Belarus 6.0%
Poland 4.2%

Export
Exports in Ukraine decreased to 3087.10 USD Million in August from 3149.17 USD Million in
July of 2015. Exports in Ukraine averaged 3758.20 USD Million from 2001 until 2015, reaching
an all time high of 7616.80 USD Million in July of 2008 and a record low of 1215.20 USD
Million in January of 2002. Exports in Ukraine is reported by the State Statistics Service of
Ukraine.

Export goods

: Ferrous metals and nonferrous metals,

Fuel and petroleum products, Coal

Chemicals,

Machinery and transport equipment,

Food products ,Grain

Main export partners

EU 28.7%

Russia 25.6%
Turkey 5.4%
Egypt 4.2%

Major Players in Each Industry

Coal industry

Energy Investment Company.

DTEK

Krasnodonvugillya

Zasyadko coal mine

Electric power industry

Dniproenergo

Donbasenergo

Energoatom

Ukrhydroenerho

Machinery industry

Ubm, Ltd

Smila Machine Building Plant Pjsc

Ganza-ukrainaPrivjsc

Promin Lvov Manufacturing and Ttrading Enterprise.

Kremenchuk Plant of Road Machinery.

Transport equipment industry

Ukrainian Helicopters

Xado Corp.

Kharkiv Transport Equipment Plant State Enterprise

Dnepropetrovsk Drilling Equipment Plant Limited...

New Transport Technologies Limited

Chemicals industry

Enamine Ltd

Svema

Chemproject Enterprises Ltd.

Biochemservice Co., Ltd.

Xado Chemical Group

Food processing industry

ProminDykanka Foodstuffs Factory

Da-lv Association

Lan-ukraine Limited Liability Company

AstekPrivjsc

Melnykove Private Agro-enterprise

Service industry

Edgewood Services Llc

SensorInfo

Africa House Europe, Ltd.

Ukrrosmetall

Insart - Offshore Software Development

Aircraft and aerospace industry

AVIANT and Kharkiv State Aircraft Production Enterprise.

Antonov Aircraft Scientific and Technical Complex

KSAPE

Kyiv Aviation Plant AVIANT

SKYETON AIRCRAFT INDUSTRIAL COMPANY

Agriculture industry

PodolskySmak

JnlInfo

Springway

Astarta Holding

Sintal Agriculture

Mriya Agro Holding

Information technology sector

Nix Solutions Ltd. Info

Unkur Solutions

Info plus Centre of Computer Technologies Closed.

Nizhny Novgorod

Infrastructure

Luxteam

IGP Ukraine Ltd

Aqua complex

BNV

ZingaMetall& Co. Ltd

Tourism industry

A-AY Tour LLC

Aerotravel Club

Adventure Empire

Hamalia Travel Company

Kalipso Travel Ltd

Packaging & Paper

Global Titan Distribution IncInfo

Cigar House "Fortuna"

Jsc "Poltava Liquor-vodka Factory"Info

Creofusion Ltd.

"Krug" Corporation

Leather Industry

Cherkasy CCI

Complex TKT

JSC "Bolshevik"

KREMENCHUG TANNERY Ltd.

UKRTAN Ltd.

TPS ltd

Tomig

Kremenchug tannery Ltd.

Kozhkon ltd.

Topic 3
About Agriculture Industries in Ukraine
Ukraine agriculture has been evolving since it achieved independence in 1991, following the
breakup of the Soviet Union. State and collective farms were officially dismantled in 2000. Farm
property was divided among the farm workers in the form of land shares and most new
shareholders leased their land back to newly-formed private agricultural associations. The
sudden loss of State agricultural subsidies had an enormous effect on every aspect of Ukrainian
agriculture. The contraction in livestock inventories that had begun in the late 1980's continued
and intensified. Fertilizer use fell by 85 percent over a ten-year period, and grain production by
50 percent. Farms were forced to cope with fleets of aging, inefficient machinery because no
funds were available for capital investment. At the same time, however, the emergence from the
Soviet-style command economy enabled farmers to make increasingly market-based decisions
regarding crop selection and management, which contributed to increased efficiency in both the
livestock and crop-production sectors. Difficulty in obtaining credit, especially large, long-term
loans, remains a significant problem for many farms.
Agricultural Land Area and Major Crops
The climate of Ukraine is roughly similar to that of Kansas: slightly drier and cooler during the
summer and colder and wetter during the winter, but close enough for comparison. The weather
is suitable for both winter and spring crops. Average annual precipitation in Ukraine is
approximately 600 millimeters (24 inches), including roughly 350 millimeters during the
growing season (April through October). Amounts are typically higher in western and central
Ukraine and lower in the south and east.
Of Ukraine's total land area of 60 million hectares, roughly 42 million is classified as agricultural
land, which includes cultivated land (grains, technical crops, forages, potatoes and vegetables,
and fallow), gardens, orchards, vineyards, and permanent meadows and pastures.
Winter wheat, spring barley, and corn are the country's main grain crops. Sunflowers and sugar
beets the main technical, or industrial, crops. Agricultural land use has shifted significantly since
Ukraine declared independence from the Soviet Union in 199

Contribution of agriculture in Ukraine GDP

Composition by sector: agriculture: 9.9%

GDP From Agriculture in Ukraine increased to 10802 UAH Million in the second quarter of
2015 from 7535 UAH Million in the first quarter of 2015. GDP From Agriculture in Ukraine
averaged 22641.91 UAH Million from 2010 until 2015, reaching an all time high of 55425 UAH
Million in the third quarter of 2014 and a record low of 6803 UAH Million in the first quarter of
2010. GDP from Agriculture in Ukraine is reported by the State Statistics Service of Ukraine.

In 2015 Ukraine total grain crop was estimated to be record 64 million metric tons, however as
several regions are claiming their independence due to the War in Donbass and the Crimea
Crisis the actual available crop yield was closer to 60.5 million metric tons. By October
Ukrainian grain exports reached 11 million metric tons. Due to the decline of the metallurgy
industry, Ukraine's top export in prior years, as a result of the War in Donbass agricultural
products accounted for the nation's largest exported set of goods.

Justification for Agriculture industries in terms of bilateral trade opportunities with

India/Gujarat
The cooperation in agricultural sector between Ukraine and India has a significant potential
given the prospects and opportunities in trade," In the first eight months of 2015, agricultural
trade turnover between Ukraine and India has reached 795.7 million U.S. dollars adding that it
was expected to further rise in the nearest future as the two nations were preparing a new
agreement on cooperation in agriculture and food industry.
According to Ukraine's official statistics, the overall trade turnover between Ukraine and India
fell 12 percent last year to 2.47 billion dollars.
Ukraine is interested in the development of strong partnership with the Republic of India. The
cooperation in agricultural sector between Ukraine and India has a significant potential given the
prospects and opportunities in trade.

The trade turnover of agricultural products amounted to $795,7mln. for 8 months in 2015: the
export reached $715,15 mln. and the import accounted for $80,55 mln.

Ukraine is interested in establishing the bilateral cooperation with India in business-to-business

and government-to-government formats. We are going to discuss the issues of intensified
cooperation between the countries, in particular, in the agricultural sector, which will be
considered in the framework of the Intergovernmental Ukrainian-Indian Commission on trade,
economic, scientific, technical, industrial and cultural cooperation,

Today, the Ukrainian side elaborates on the draft Agreement on cooperation in agricultural sector
and food industry between the Ministry of Agrarian Policy and Food of Ukraine and the Ministry
of Agriculture of the Republic of India, which was submitted on September 14, 2015, by the
Embassy of the Republic of India in Ukraine. The signing of this document will open a new
stage of cooperation in agricultural sector between the countries,
Agricultural sector is one of the most important sector in both countries, India and Ukraine. In
India, 60 percent of its population are dependent directly or indirectly on agriculture. Agriculture

sector is expected to grow at 4.6 percent in 2014. MSP increases in the past 10 years (2004-05 to
2014-15) vary from about 125 percent for food grains. Ukraine has given the high quality and
availability of fertile land More than two thirds (71.2%) of their total land area.

Industry sub sub-segments

Overview of agriculture industry in Gujarat
Gujarat is the one of the fastest growing states of India. The state has adopted a novel pattern of
progress with the strategic development of the key sectors like energy, industry and agriculture
for which it has achieved ambitious double digit growth rate since 10th Five Year Plan period.
The state constitutes about 6.2 per cent of total geographical area and 4.99 per cent of total
population of India. About 3.47 crores people of the state live in rural areas forming about 57.4
per cent of its total population (GoI, 2011). About 70.5 per cent of total workers in the state are
rural based. Agriculture continues to be the primary occupation for the majority of rural people in
the state. About 51.8 per cent of total workers are cultivators and agricultural labourers.
Thus, the agriculture in the state has been a major source of labour absorption. Moreover,
agriculture provides indirect employment to large portion of population in agro-based
occupations. Thus, prosperity and well being of people in Gujarat is closely linked with
agriculture and allied activities.
The State is divided into 7 sub agro-climatic zones based on the characteristics of their
agriculture and climate. The State is endowed with abundant natural resources in terms of varied
soil, climatic conditions and diversified cropping pattern suitable for agricultural activities.
Agriculture in Gujarat is characterized by natural disparities such as (i) drought prone areas and
lowest annual rainfall amounting to only about 345 mm at the North West end of the states; and
assured and highest annual rainfall amounting to about 2500 mm at the South-East end; (ii) well
drained deep fertile soils of central Gujarat and shallow and undulating soils with poor fertility in

hilly rocky areas in the east; (iii) moisture starved degraded areas and low lying waterlogged and
saline areas; (iv) areas prone to frequent scarcity and areas prone to frequent cyclone or floods or
locusts (GoG, 2012a). Thus, output of agricultural sector in Gujarat has been largely dependent
on south-west monsoon.
The state frequently experiences erratic behaviour of the south-west monsoon, which can partly
be attributed to geographic situation. Out of total reporting area of 18.8 million hectares, 59.2
percent area (11.4 million hectares) is covered under cultivation. About two-third of the area of
the state is under arid and semi-arid tropics, where the risk and instability in agricultural
production and productivity usually remain quite high. However, these arid and semiarid areas of
the state have clocked high and steady growth at 9.6 per cent, whereas the GDP from agriculture
and allied sectors has increased by less than 3 per cent at national level (2.9 percent) during the
same period.

Gujarat is the main producer of tobacco, cotton, and groundnuts in India. Other major crops
produced are rice,wheat, jowar, bajra, , tur and gram. Gujarat has an agricultural economy; the
total crop area amounts to more than one-half of the total land area.
The major fruit crops grown in Gujarat are Banana, Mango, Citrus, Papaya and Sapota. In the
year 2013-14 the productivity of fruit crops is estimated at 21.18 MT/ Hectare.

The major vegetables grown in Gujarat are Onion, Potato, Brinjal, Tomato, Okra and cucurbits.
In the year 2013-14, the average productivity of vegetables is estimated at 19.90 MT/Hectare.
The State mainly produces spices viz. Cumin, Fennel, and Garlic. The State enjoys monopoly in
seed spices. Isabgul is prominent medicinal crop grown in the State.
Sanction of three Mega Food Parks in three strategic location of Gujarat brings huge
opportunities for investors in Gujarat.

Segments of the Food & Agro Industry

Food grains
"Unseasonal rains/hailstorm during Feb-March 2015 hadsignificant impact on production of
Rabi crops. As a resultof setback in Kharif as well as Rabi seasons, theproduction of most of the
crops in the country hasdeclined during 2014-15", said the ministry of agriculturewhile releasing
the third advance estimated food-grainproduction data for the year 2014-15.
As per 3rd Advance Estimates for 2014-15, totalproduction of rice is estimated at 102.54 MT
which islower by 4.11 MT than the last year's record production of106.65 MT.
Production of wheat estimated at 90.78 MT which is lowerby 5.07 MT than the record
production of 95.85 MTachieved during 2013-14. Total production of CoarseCereals estimated at
40.42 million tonnes is also lower by2.87 million tonnes than their production during 2013-14.
Production of pulses estimated at 17.38 million tonnes islower by 1.87 million tonnes than their
production duringthe last year. With a decrease of 5.37 million tonnes overthe last year, total
production of oilseeds in the country is estimated at 27.38 million tonnes.
Production of sugarcane is estimated at 356.56 milliontonnes which is higher by 4.42 million
tonnes ascompared to last year.
Total production of cotton estimated at 35.32 millionbales (of 170 kgs each) is marginally lower
than last yearbut higher by 2.85 million bales than the averageproduction of last 5 years.

Production of jute &mesta is estimated at 11.49 millionbales (of 180 kg each) which is
marginally lower thantheir production during the last year.

production 2015

35.32 17.49 102.54

Rise in (MT)
wheat(MT)
pulses(MT)

90.78
17.38

sugarcane(MY)
cotton seeds(MT)
Mesta(MT)

356.56

Spices
Gujarat state mainly produces spices viz. Cumin, Fennel, and Garlic. The State enjoys
monopoly in seed spices. Isabgul is prominent medicinal crop grown in the State.

Gujarat State Spices Production in Thousand MT for year 2013-2014

Garlic

dill\poppy\celery

50.59
68.53
Coriander Cumin
70.65
21.13
6.37
14
55
ginger

chillies

Fennel
250

Fenugreek

Ajwan

32.31
turmeric

280

Fruit & vegetable

The horticulture sector is supplier for large number of agro-based industries, which has high
avenues for generation of skill full employment and self-employment opportunities both in rural
and urban areas. Gujarat has a wide variety of soil, rainfall pattern, temperature regimes and
irrigation availability.
The major fruit crops grown in Gujarat are Banana, Mango, Citrus, Papaya and Sapota. In the
year 2013-14 the productivity of fruit crops is estimated at 21.18 MT/ Hectare.
The major vegetables grown in Gujarat are Onion, Garlic, Potato, Brinjal, Tomato, Okra and
Cucurbits. In the year 2013-14, the average productivity of vegetables is estimated at 19.90
MT/Hectare.
Gujarat has taken a lead in the sector of establishing Greenhouses by producing high value
flowers like; Dutch Roses, Gerberas and Carnation and vegetable crops like; Capsicum, Khira,
Cucumber and Tomato.

The state is in leading position in Onion, Potato, Banana and Papaya. The State also introduced
Cashew Nut, Pamaroza, Sweet Orange and medicinal crops. The climate is favorable for
development of Alphanso mango in South Gujarat and Kesar in Junagadh areas. Date palm in
Kutch is monopoly crop in country. Besides, Banana,Lime, Ber, Sapota, Coconut have also
occupied area in the State.
Gujarat State Vegetables Production in Thousand MT for year 2013--14

1259.01

1476.99

BRINJAL
potato

661.4

onion
okra\ladyfinger

601.48
2267.38

759.04

cauliflowar
cabbage
tomato

1851.22

Dairy Product
Gujarat is one of the largest milk producing states in Indiawith the contribution of 7.75% share in
the total milkproduction of India.
The state having 17 Cooperative dairymilk unions & 25 private dairy plants has a milk
collectionof 3.45 billion litres with over 30 lakhs milk producers,affiliated to more than 15,000
Primary Milk CooperativeSocieties.
Milk contributes to 22% to the Agricultural GDP of Gujaratand is one of the biggest sectors for

supporting livelihood inthe state. As per state census data, out of about 102 lakhstotal household
of Gujarat, 42.6 lakhs households areengaged in Dairy and Animal Husbandry sectors as
aprimary or secondary source of their income. Though thedairy sector is active in most of the
districts, some of thedistricts still need to be brought in the active dairynetwork.

Meat and Poultry

Production of meat & meat products has beensteadily growing at a rate of 4% p.a. currently;
theprocessing level of buffalo meat is estimated at 21%, poultry6% and marine products 8%.
Only about 1% of the totalmeat is converted into value added products like sausages,ham,
bacon, kababs, meat balls, etc.
Production of meat isgoverned under local by-laws as slaughtering is a statesubject. The
countryproduces about 450 mn broilers and 30 billion eggsannually. Cattle, buffaloes, sheep
and goat, pigs and poultryare the types of animals which are generally used forproduction of
meat. Slaughter rate for cattle as a whole is20%, for buffaloes it is 41%, pigs 99%, sheep
30% and 40%for goats. The country has 3,600 slaughter houses, 9modern abattoirs and 171
meat processing units licensedunder the meat products order.
The poultry industry is among the faster growing sectorsrising at a rate of 8% per year.
Vertical integration of poultryproduction and marketing has lowered costs of
production,marketing margins and consumer prices of poultry meat.
Processed foods
The Food Processing Industry is estimated to be worth around USD 67 billion and

expected to increase to USD 175 billion by 2025

The Processed Food sector has a potential of attracting USD 33 billion investment
About 6% of the total Indian produce is processed
There are over 25,000 registered units in the food sector with investments of Rs 840

billion
Ministry of Food Processing Industries (MoFPI) through its Vision 2015 envisages
Increasing the level of processing of perishables from 6% to 20%;
Raising value addition from 20% to 35%
Enhancing Indias share in global food trade from 1.5% to 3.0%

Contribution of agriculture industry in national GDP (Gujarat)

Gujarat has population of approximately 60.3 million accounting for about 5% of the Indias
population. It accounts for 6% of land area of India and is Indias most progressive States with a
positive development quotient that has always capitalized on its strength to leverage strategic
opportunities.
Its continued progress is based on business friendly policies and proactive administration, which
has led to the State being a preferred investment destination. Gujarat is a strong Economy with
the SDP rising at an average growth rate of 10.1% since 2005 to 2013, more than the national
average. Gujarat pays a 27% tax of India.
Gujarat achieved an annual growth rate of 9.51% during 2007-2012. Gujarat is located on the
western coast of India and has the longest coastline of 1,600 km among all states in the country.
The state shares its borders with Rajasthan, Madhya Pradesh, Maharashtra and the Union
Territories of Daman & Diu and Dadra &Nagaraveli.
The Arabian Sea borders the state both to the west and the southwest. Gujarat is one of the
leading industrialized states in India, which attracted cumulative FDI worth US$ 11 billion from

April 2000-March 2015 and is the second highest recipient of FDI in India after Maharashtra. At
current prices, Gujarat's gross state domestic product (GSDP) was about US$ 142.38 billion over
2014-15. Average annual gross state domestic product (GSDP) growth rate from 2004-05 to
2014-15 was about 12.11 per cent.

Gujarat's gross state domestic product (GSDP) was at US$ 142.38 billion over 2014-15

Gujarat' net state domestic product (NSDP) was at US$ 120.91 billion over 2014-15

Major players

 Monsanto
Rallis
H. J. Heinz
Advanta India Ltd.
Phalada Agro Research Foundation Ltd.
Poabs Organic Estates
National Agro Industries
DuPont India
Rasi Seeds
ABT Industries

Local tax and duties applicable in agriculture industry

In India domestic trade taxes are levied by the central, state as well as local governments, and
have a highly complex structure. The major domestic trade taxes include: union excise duties
(UED) and central sales tax (CST) levied by the centre; general sales tax (GST), entry tax and
electricity duty levied by the States; and octroi levied by the local governments.
Octroi is currently levied in six states, namely. Gujarat. Haryana, Himachal Pradesh,
Maharashtra. Punjab, and Rajasthan, while entry tax prevails in two of the non-octroi states,
namely, Karnataka and Madhya Pradesh.

As per extant Service Tax laws the agro-sector has been supported by keeping a bulk of services
relating to agriculture or agricultural produce in the Negative List or in the list of exempted
services. However, there are some services like Warehouse Management Services, Security
Services, and Laboratory Testing Services etc.

The composite cap of foreign exchange in defence manufacturing was raised to 49% from 26%.
This is expected to give a push to our indigenous production capacities in defence manufacturing

Spcial Security Subsidies

(a) Increase the subsidy under GrameenBhandaranYojna to 35% (25% at present). For NE
States / Hilly areas, SC/ST entrepreneurs and their cooperatives and women farmers, the subsidy
should be increased to 40% (33.33% at present). Subsidy for smaller godowns of 50 MT size in
general and of 25 MT in hilly areas as permitted, be also increased to 50% to increase the
capacity of warehouse. This should be subject to construction as per the norms laid by NABARD
and should be available to only rural areas, accessible by motorable roads throughout the year.
(b) Construction of godowns under Private Entrepreneurs Guarantee (PEG) scheme formulated
by FCI for guaranteeing the storage should be enhanced to 15 years (for escrowing the
repayments), so as to have lower EMI for the entrepreneurs who plan to get their projects
financed by the banks. Financing to this sector should be considered for lower capital adequacy
requirements for banks besides permission to have special dispensation to grant term loans
beyond 10 years tenure.
(c) Banks should get direct lending tag under priority sector benchmark towards the loans given
for construction of godowns both under PEG and GrameenBhandaranYojna as against indirect
lending under priority sector at present.

TOPIC 4
STEEPLED ANALYSIS OF UKRAINE AND GUJARAT OF
AGRICULTURE SECTOR
STEEPLED ANALYSIS OF AGRICULTURE SECTOR IN UKRAINE
SOCIAL FACTOR
Analysis of official statistical data shows that in 2006 almost 66% of rural population had their level of
cash incomes less than minimum of subsistence, which is higher than the share of poor population in
cities 42%. Of course the major share of poor is concentrated in cities, but their share is higher in rural
areas. With the purpose for identification of trends in income distribution not only in within the statistical
aggregate of rural population and also within its separate groups we used method of statistical groupings
of rural population by the poverty levels (per capita income in relation to minimum of subsistence).
Results show significantly positive dynamics after 2000: level of per capita income is increasing, share of
very poor people is decreasing, and the share of relatively rich people is increasing, their per capita
income is 3.5 times higher than the same indicator for the group of the poorest ones.
But such positive dynamics is not completely show the real situation. Because in analyzed database
theres no information about incomes of really rich members of rural households, who refused to
participate in this survey. Moreover, the indicator of per capita income is influenced by both income
increase and decrease of members of households i.e. rural population (from 2001 to 2006 by 1.1 mln.
people, in Ukraine by 2.3 mln.). According to our empirical researches during the last two years the
total income of rural households has increased due to pensions risen up to the subsistence level.
It should be noted that the salary level in agriculture is extremely low. In 2006 for one hour worked in
agricultural enterprise Ukrainian worker obtained 3.70 UAH (0.74 USD
Technological FACTOR

The modern development of science and technology in Ukraine has its beginning in the 18th century,
when the Kyiv Mohyla Academy became a noted research center. A great page in Ukraines history was
the rise Ukrainian Academy of Sciences. Its founder was a very talented scientist - VolodymyrVernadsky.

ECONOMY FACTOR
The economy of Ukraine is an emergingfree market, with a gross domestic product that fell sharply for
the first 10 years of its independence from the Soviet Union, then experienced rapid growth from 2000
until 2008. Formerly a major component of the economy of the Soviet Union, the country's economy
experienced a deep recession during the 1990s, including hyperinflation and a drastic fall in economic
output. In 1999, at the lowest point of the economic crisis, Ukraine's per capita GDP was less than half of
the per capita GDP it achieved before independence. GDP growth was first registered in 2000, and
continued for eight years. In 2007 the economy continued to grow and posted real GDP growth of 7%.In
2008, Ukraine's economy was ranked 45th in the world according to 2008 GDP (nominal) with the total
nominal GDP of 188 billion USD, and nominal per capita GDP of 3,900 USD.
ENVIRONMENTAL FACTOR
Ukraine's environmental problems include the nuclear contamination which resulted from the 1986
Chernobyl accident. One-tenth of Ukraine's land area was affected by the radiation. According to UN
reports, approximately one million people were exposed to unsafe levels of radiation through the
consumption of food. Approximately 3.5 million ha (8.6 million ac) of agricultural land and 1.5 million
ha (3.7 million ac) of forest were also contaminated.
Pollution from other sources also poses a threat to the environment. Ukraine releases polluted water,
heavy metal, organic compounds, and oil-related pollutants into the Black Sea. The water supply in some
areas of the country contains toxicindustrial chemicals up to 10 times the concentration considered to be
within safety limits.

POLITICAL FACTOR
Politics of Ukraine take place in a framework of a presidentialrepresentative democraticrepublic and of a
multi-party system. Executive power is exercised by the Cabinet. Legislative power is vested in the
parliament (VerkhovnaRada). Scholars have described Ukraine's political system as "weak, fractured,

highly personal and ideologically vacuous while the judiciary and media fail to hold politicians to
account" (Dr.TarasKuzio in 2009). Ukrainian politics has been categorised as "over-centralised" which is
seen as both a legacy of the Soviet system and caused by a fear of separatism.

LEGAL FACTOR
The legal system of Ukraine is based on the framework of civil law, and belongs to the RomanoGermanic legal tradition. The main source of legal information is codified law. Customary law and case
law are not as common, though case law is often used in support of the written law, as in many other legal
systems. Historically, the Ukrainian legal system is primarily influenced by the French civil code, Roman
Law, and traditional Ukrainian customary law.[citation needed] The new civil law books (enacted in
2004) were heavily influenced by the German BrgerlichesGesetzbuch .[citation needed]
The primary law making body is the Ukrainian Parliament (VerkhovnaRada), also referred to as the
legislature (Ukrainian: zakonodavtsi). The power to make laws can be delegated to lower governments or
specific organs of the State, but only for a prescribed purpose. In recent years, it has become common for
the legistature to create "framework laws" and delegate the creation of detailed rules to ministers or lower
governments (e.g. a province or municipality).[citation needed]
Ukrainian politicians and analysts have described the system of justice in Ukraine as "rotten to the core"

ETHICAL FACTOR
The production transformation and distribution of food and agriculture product are general excepted as
routine aspects of daily life around the world. Therefore such activity have rarely been address within the
realm of ethics. Only on a few occasion has FAO consider ethical value although they are in the preamble
the organization constitution.

DEMOGRAPHIC FACTOR
The demographics of Ukraine include statistics on population growth, population density, ethnicity,
education level, health, economic status, religious affiliations, and other aspects of the population.

The data in this article are based on the most recent Ukrainian Census, which was carried out in 2001, the
CIA World Factbook, and the State Statistics Committee of Ukraine. The next census is scheduled to take
place in 2016.

STEEPLED ANALYSIS OF AGRICULTURE SECTOR IN GUJARAT

SOCIAL FACTOR

India consisting of 16% of world's population sustains only on 2.4% of land resource.
Agriculture sector is the only livelihood to the two-third of its population which gives
employment to the 57% of work force and is a raw material source to large number of industries.
Despite of portrayal of farming as a healthy and happy way of life, agriculture sector experiences
one of the highest numbers of suicides than any other industry. Farmers' suicide is not only
reported in Vidarbha region of Maharashtra, but also from Punjab, Uttar Pradesh, Kerala, and
Karnataka. In a country of 70 million farmers, it is 10 in every 100,000 farmers committing
suicide. This is higher than the total national suicide rate. The number of farmers committing
suicide in India is more than twice of the total number of suicides being committed in the top 100
countries on the suicide list! This indeed is worrying factor. The Government's measures
including waiving off loans, construction of dams, another assisting measures have not produced
positive results so far. In India, the national data show that suicide rate was 9.7/lakh population
in1995.

TECHNOLOGICAL FACTORS

Long since the start of green revolution Indian or Gujarat Agriculture has moved very far with
the inception and adoption of new technology and improved way of farming agriculture sector
has taken long strides. Few of the factors affecting Indian agriculture are:

Agriculture mechanization

Outsourcing of training

State agro industrial corporation

Legislative framework

Agricultural Commodities Exchanges

To introduce future trading in agricultural commodities in India, two commodity exchanges have been
introduced in2003 for future trading. They are, National Commodity & Derivatives Exchange Limited
(NCDEX) and Multi Commodity Exchange of India Limited (MCX). These exchanges are major dealing
in agricultural commodities. They are involved in forward trading to mitigate price risks of the farmers.

ECONOMICAL FACTOR

Worlds largest producer of milk and livestock, with an annual production of 122 Million Metric
Tonnes (MMT) of milk with 528 million livestock 2nd largest producer of fruits and
vegetables, producing 213 MMT 3rd largest producer of food grains, producing 250 MMT and
fish production of 8.3 MMT India produces 63 billion eggs, with 649 million poultry
Agriculture engages 70% of Indian population. Food Processing sector alone employs 13 million
directly and 35 million indirectly (2010-11) Agriculture contributes to 18% of Indian GDP.
Food Processing contributes 14% of the manufacturing GDP, which amounts to Rs. 2,800 billion.
(2010-11).
Gujarat has performed considerably well in the agriculture sector with an increase of 29.68 lakh
tonne in food grain production in 2013-14, according to the Socio-Economic Review Report of
the state for FY'14.
"As per estimates, production of food grains during 2013-14 is estimated at 99.90 lakh tonne
compared to 70.22 lakh tonne last year," the Socio-Economic Review Report of Gujarat state of
the year 2013-14 said.

ENVIRONMENTAL FACTOR

Rains are the lifeblood for India agricultural sector. The country is one of the world's largest
producers and consumers of everything from sugar, rice, vegetables t soybeans. Agriculture
sector employs around 60 per cent of the total workforce in India an contributes about 17 per
cent of the India' GDP. Agriculture also contributes about 2025 per cent of India's national
income; hence a decline in agricultural growth will pull down the overall growth rate in GDP. If
agricultural output declines, overall GDP growth will perhaps be restricted at 5-6 per cent instead
o 7-8 per cent. In India, monsoon is crucial for summer sow crops, like, soybean, rice, cotton an
sugarcane. With only 40 percent of farmland irrigated, the vast majority of India's small farmers
depend on monsoon to water their seeds. Insufficient rains this year have cause acreage of all
major crops to lag behind in term of year-on-year (Y-o-Y) estimates, halting prospects for bigger
harvests of rice, oilseed and sugar cane. Indian Farm Minister, SharaPawar told Parliament on
24th July that monsoon rains has remained weak in the State of Bihar, India's leading corn
producer, an Uttar Pradesh, which normally produces more than half of India's sugarcane.
Between June 1 and July 15, rains have been 43 per cent below normal in the crucial Northwest
region, the nation's 'Grain Bowl' reported the weather bureau. The region includes the biggest
grain-growing states of Punjab, Uttar Pradesh and Haryana. All of major Agro states of India,
including Madhya Pradesh, Andhra Pradesh, Gujarat Maharashtra, Uttar Pradesh, Punjab and
Haryana kept waiting for rain in the month of June, which ultimately arrived in the last week of
June, but in deed with a very weak progress. According to official estimates, the cumulative
seasonal rainfall between 1st June and 15th July is 27 per cent below normal levels. The deficient
rainfall has adversely affected the kharif sowing, as the total are under kharif crops has declined
to 112lake hectares in 2009 compared to 136 lakh hectare in the corresponding period in2008, a
drop of 17.1 per cent. The worst hit crops are rice oilseeds, especially groundnut and soybean
sugarcane.

POLITICAL FACTOR

Political influence on Indian agriculture is very much widespread. It ranges from incorporation
of new policies for the farmers to the steps taken on their welfare and development. Political
factor is often related directly with the central government that is in power.
AGRICULTURE POLICIES:

The beneficial impact on agricultural situation in India of a host of well-intentioned government

policies has not been as great as originally envisaged. Agriculture being a State subject, India
lacks an Agricultural Policy at the National level and the onus of framing policies for agricultural
development lies with the State government. The Standing Advisory Committee on Agriculture,
appointed during1989-90 made a note of it and commented, Even after four decades of independence,
India has not been able to come out with a comprehensive agricultural policy nor has there been any
worthwhile debate on the role of agriculture in the process of economic development. The earlier school
of thought, that growth and advances in the industrial and service sector would transitively benefit the
agricultural sector on the whole, has always cast agricultural development in the shadows of industrial
growth.

Emerging Trends

The agriculture sector recorded satisfactory growth due to improved technology, irrigation,
inputs and pricing policies. Livestock, poultry, fisheries and horticulture are surging ahead in
production growth in recent years and will have greater demand in the future. Industrial and
service sectors have expanded faster than agriculture sector resulting in declining share of
agriculture in national accounts. Despite the structural change, agriculture still remains a key
sector, providing both employment and livelihood opportunities to more than 70 percent of the
countrys population who live in rural areas.
LEGAL FACTOR

Governments influence the crops farmers grow through regulations, subsidies and quotas.

Governments offer advice, training and finance to farmers and, in new farming areas,
may build the infrastructure of roads and drainage, e.g. Amazonia.

In some countries, e.g. Kenya and Malaysia, the government is trying to help nomadic
farmers to settle in one place.

Some governments plan and fund land reclamation and improvement schemes.

Legal factors include various laws, reforms and new policies drawn up by the
government for improving the current scenario of agriculture sector. Some of the
important aspects of legal factors are discussed below.

IRRIGATION

CROP PROTECTION

FERTILIZERS

SOIL AND WATER CONSERVATION

ETHICAL FACTOR

The production transformation and distribution of food and agriculture product are general
excepted as routine aspects of daily life around the world. Therefore such activity have rarely
been address within the realm of ethics. Only on a few occasion has FAO consider ethical value
although they are in the preamble the organization constitution.
Food is essential for survival of human being. Hunger results from neglect of universal Wright to
food. Both from ethical system and ethical practices in every society presume the necessities of
providing those who are able bodied with the means to obtain food and enabling those who are
enable feed themselves to receive food directly.
Human health is improved by the elimination of hunger. Healthy people are more able to
participate in human affair and more able to live productive and meaning full lives. Furthermore
the production of human health also involves ensuring adequate nutrition and safe grad against
unsafe food.

DEMOGRAPHICAL FACTOR

The population of Gujarat State was 60,383,628 according to the 2011 census data. The
population density is 308 km2 (797.6/sq mi), lower than other Indian states. As per the census
of 2011, the state has a sex ratio of 918 girls for every 1000 boys, one of the lowest (ranked 24)
amongst the 28 states in India. Gujarati people from the majority of Ahmadabad population:
Marwaris and Biharis compose large minorities. In Ahmedabad state, smaller communities are
Nepalese, Portuguese, South Koreans, Tamils, Oriyas, Telugus, Assamese, Bengali, AngloIndians, Armenians, Greeks, Jews, Tibetans, Maharashtras, Konkanis, Malayalees, Punjabis, and
Parsis. The South Korean community traditionally worked in the local tanning industry and ran
restaurants. Sindhi presence is important here.

COMPARATIVE ANALYSIS OF STEEPLED IN TABULAR FORM

SOURCE
SOCIAL

UKRAINE
In 2006 almost 66% of rural
population had their level of cash

world's population sustains

incomes less than minimum of

only on 2.4% of land resource.

subsistence

TECHNOLOGICAL

GUJARAT
India consisting of 16% of

Agriculture sector is the only

This is higher than the share of poor

livelihood to the two-third of

population in cities 42%.

its population which gives

Their per capita income is 3.5 times

employment to the 57% of

higher than the same indicator for

work force and is a raw

the group of the poorest ones.

material source to large

The modern development of science and

number of industries.
Few of the factors affecting Indian

technology in Ukraine has its beginning in

agriculture are:

the 18th century, when the Kyiv Moyle

Agriculture mechanization

Academy became a noted research center

Outsourcing of training

State agro industrial

corporation

ECONOMIC

The economy of Ukraine is an

Legislative framework
2nd largest producer of fruits

emergingfree market

and vegetables, producing 213

In 2007 the economy continued to

MMT

grow and posted real GDP growth of

3rd largest producer of food

7%

grains, producing 250 MMT

In 2008, Ukraine's economy was

and fish production of 8.3

ranked 45th in the world according

MMT

to 2008 GDP (nominal) with the

total nominal GDP of 188 billion

India produces 63 billion eggs,

with 649 million poultry

USD, and nominal per capita GDP of

ENVIORMENT

3,900 USD.
Ukraine's environmental problems

India agricultural sector. The

which resulted from the 1986

country is one of the world's

Chernobyl accident.

largest producers and

Approximately 3.5 million ha (8.6

consumers of everything from

million ac) of agricultural land and

sugar, rice, vegetables t

1.5 million ha (3.7 million ac) of

soybeans.

Agriculture also contributes

about 2025 per cent of India's

poses a threat to the environment.

national income

In India, monsoon is crucial

heavy metal, organic compounds,

for summer sow crops, like,

and oil-related pollutants into the

soybean, rice, cotton an

Black Sea

sugarcane.

Politics of Ukraine take place in a

ranges from incorporation of

framework of a

new policies for the farmers to

presidentialrepresentative

the steps taken on their welfare

democraticrepublic and of a multi-

and development.

party system.

LEGAL

Pollution from other sources also

Ukraine releases polluted water,

POLITICAL

Rains are the lifeblood for

include the nuclear contamination

forest were also contaminated.

Political factor is often related

Executive power is exercised by the

directly with the central

Cabinet.
The legal system of Ukraine is based

government that is in power.

Governments influence the

on the framework of civil law, and

crops farmers grow through

ETICAL

belongs to the Romano-Germanic

regulations, subsidies and

legal tradition

quotas.

The power to make laws can be

Governments offer advice,

delegated to lower governments or

training and finance to farmers

specific organs of the State, but only

and, in new farming areas,

for a prescribed purpose.

may build the infrastructure of

Hunger results from neglect of

roads and drainage,

The production transformation

universal Wright to food

and distribution of food and

agriculture product are general
excepted as routine aspects of

DEMECRAPHICAL

The demographics of Ukraine

daily life around the world

The population of Gujarat

include statistics on population

State was 60,383,628

growth, population density,

according to the 2011 census

ethnicity, education level, health,

data

economic status, religious

The population density is 308

affiliations, and other aspects of the

km2 (797.6/sq mi), lower

population.

than other Indian states

SWOT ANALYSIS OF AGRICULTURE IN UKRAINE AND

GUJARAT

SWOT analysis of Agriculture in Ukraine

The agricultural production sector is vulnerable to a series of risks and tendencies of both natural
and anthropogenic character with potential for a strong, negative impact on agriculture.
Sustainability of rural economy, its competitiveness in domestic and foreign markets, the
guarantee of food security for the country and preservation of the peasantry as the carrier of
Ukrainian identity, culture and spirituality are the major goals of the current rural development
strategy of Ukraine. The development of this strategy utilised a SWOT.

Strengths
Comparative advantage in agriculture and food, with huge areas of fertile arable land;

Strong natural capacity for export of primary agricultural commodities: wheat, sunflower,
and other crops;

As compared to EU countries, a lower cost labour force;

Agri-holdings capable of organising effective production and export;

Access to large CIS markets and WTO membership;

An agriculture development policy with an emphasis on enterprise development.

Weakness

Vulnerability to a number of risks including soil erosion, drought, flood and heavy rain
and frosts;

Uncompetitive products and insufficient development of the higher value products

demanded by external markets;

Productivity is low in comparison with EU countries;

State funded support programmes have limited transparency, favouringagri- enterprises

which accentuates inappropriate policies and non sustainable agricultural practices;

A semi-subsistence type of agriculture is practiced on the many millions of small and

fragmented land plots;

Undeveloped market infrastructure including handling, storage, packing, processing,

cooling and distribution;

Insufficient market based research and development;

Incomplete land reform decreases investment opportunities for farmers;

No rural development policies or funded programmes;

Poorly developed rural infrastructure

Opportunities

New cost effective and environment friendly technologies have major potential;

The modernization of the quality management system encourage access to new

international markets for higher value products;

The EU Association Agreement and DCFTA will open new markets;

Increasing demand for agricultural products;

The improvement of the investment and business climate will allow for an increase of
investments in the sector from both local and foreign sources;

Completion of land reform and formation of efficient land market will create new
opportunities in the agricultural sector;

Improvement of the rural infrastructure by developing the roads and social structures will
support business development in the rural space and consequently employment and
incomes;

Ukraine has the opportunity to become the largest organic producer in Europe;

Potential demand for bio-fuel in EU (oilseed rape production)

Threats

Soil erosion and decreasing fertility due to intensive cultivation;

Reliance of livestock producers on communal pasturelands with no incentives to

commercialise;

Possible failure to improve business and investment climate thereby preventing further
development and competitiveness;

Slow progress in adoption of international standards into national regulations;

Weak linkages in the supply chains and lack of access to markets by the small primary
producers;

No pure national livestock breeding base, dependence on imported breeds and crosses;
Intention to implement integration simultaneously in various directions (DCFTA with
EU, Customs Union with CIS countries, etc.);

Political problems capable of slowing development of export markets;

Market protection measures from the Customs Union (Russia, Belarus, Kazakhstan);

A declining population, especially in the rural areas

SWOT analysis of Agriculture in Gujarat

Strength

8 Agro-climatic zones, Wide varieties of soil, More than 40 major crops

Predominance of non-food, high value crops

o --- i.e. cotton, castor, tobacco, isabgul, cumin, fennel, mangogroundnut, banana

Entrepreneurial farmers

Longest sea coastline

Well developed infrastructure

Agro Industries Policy

Well developed Co-operatives

Dominance in milk sector

Good Governance + original initiatives

Relatively strong marketing network

Recent attention to post harvest management

Weakness

70% area depend on rain

o (After completion of Sardar Sarovar Project it will be 49%)

Uneven distribution of rain

o i.e. In Kachchh 400 mm & In South Gujarat -1500 mm

Drought prone area

Arid and semi arid area

19.61% & 9.46% Respectively share in India

Declining land holding

i.e. The average size of holding has reduced from 4.11 ha in 1970-71 to 2.62 ha in 199596 and 2.33 ha in 2000-01.(Provisional)

Saline and water logged area

o i.e. 21.80% & 19.62% of total irrigated area respectively

Low technology assimilation capacity in rural areas

High cost of power

Flood / erosion

Opportunity

GM crops, Biotechnology

Horticultural Development

Agri export zone

i.e. Potato, Castor, Isabgul, Fruits. Datepalm, Duram wheat etc

o Organic farming: Special Zone, Market for organic product

Agro processing Industries

i.e. Cotton, Oilseed, Tomato, Cumin, Isabgul, Castor, Papaya, Fruits & Vegetables

Export potentiality
o i.e. Cotton, Cumin, Onion, Garlic, Castor, Isabgul, Mango, Other fruits &
vegetables , Flowers, Duram wheat, Processed maize etc

Corporate and contract farming

Investment in Agriculture Sector

o Private Market, Terminal Market, E-market

IT network

Public Private Partnership, NGOs work

Use of solar energy in agriculture, Benefit of natural resource

Threat

Inadequate and erratic nature of rainfall

Frequent draught

Soil erosion, Depletion of Water Table, Salinity ingress / Sea Water Ingress

Market fluctuation

Inadequate processing facilities

TOPIC 5&6
About Uttar Pradesh of India

Uttar Pradesh is the heart of India whose history goes back to the Vedic Age. Two great epics, the
Ramayana and the Mahabharata and great religions Buddhism and Jainism were born and
flourished here. In the medieval ages, great Muslim empires were established in this region. It
played a prominent role in Indias First War of Independence in 1857.
The Britishers gave it the name of the United Provinces of Agra and Oudh. In 1935 the name was
shortened to United Provinces. After Independence, the States of Rampur, Banaras and Tehri-

Garhwal were merged with United Provinces. With the advent of Indian independence, the
United Provinces was renamed "Uttar Pradesh," or "northern province", by GovindBallabh Pant,
the first chief minister. This preserved the commonly used abbreviation U.P. In 2000, the
northwestern districts of Uttar Pradesh became the new state of Uttaranchal.

Information
State Area (Sq. Km.)

238,566

State Capital

Lucknow

Major Language(s)

Hindi, Urdu, Awadhi, Braj, Bhojpuri and English

Number of Districts

70

Population

166,052,859

Males

87,466,301

Females

78,586,558

Growth Rate 1991-2001

25.80 %

Density

689

Urban Population

20.78 %

Sex Ratio (Females per 1000 Males)

898

Literacy Rate

57.36 %

Males

70.23 %

Females

42.98 %

Legislature

Legislative Assembly and Council

Judicature

High Court, Allahabad

Ethics group

'Uttar Pradesh is the holy land of the holy People',over the years the people of the state has
proved the saying by their sober nature, royal mannerism and the high literal taste. The city of
Nawabs has thousands of stories about their etiquettes which has influenced the whole state. The
calmness of the people and their display of affection for the younger and respect for the elders is
a trait to be followed by one and all.
The Culture of Uttar Pradesh is an Indian Culture which has its roots in the Hindi and Urdu
literature, music, fine arts, drama and cinema. Lucknow, the capital of Uttar Pradesh, has several
beautiful historical monuments such as Bara Imambara and ChhotaImambara.
Uttar Pradesh is the most populated state in the country with 175 million inhabitants, out of
whom 81% follow the Hinduism, 18% follow the Islam, and the rest belongs to the religion of
Sikhism, Jainism, Buddhism and Christianity. In the Hindu community there are various sub
groups based on the caste they belong to. The Brahmin is the most superior caste followed by the
Kshatriyas, Vaishayas, they dominate the economic and political sector over the centuries and are
in minority. The schedule casts schedule tribes and the backward class form the majority and live
in rural areas. Even though having too many religions and castes the people of the state has lived
in Complete tranquility.
NATURAL RESOURCES
Uttar Pradesh has ample reserves of coal, dolomite and gems. Other Important minerals include
diaspore, sulphur and magnesite, prophyllite, silica sand and limestone. It is of great use to the
people of Uttar Pradesh as well as it supports the economy of the country and indirectly affects
the economy of the world.

Transportation between Uttar Pradesh and Gujarat

Origin :

Gujarat, India

Destination :

Uttar Pradesh, India

Driving Distance :

1312 kms or 815.2 miles or 708.4 nautical miles

Driving Time :

1 days, 2 hours, 14 minutes

Railway tranportation
The state has the largest railway network in the country and the sixth highest railway density. As
0f 2011, there were 8,546 km (5,310 mi) of rail in the state. Allahabad is the headquarters of
the North

Central

Railway and Gorakhpur is

the

headquarters

of the North

Eastern

Railway. Other than Zonal Headquarters of Allahabad and Gorakhpur, Lucknow and Moradabad
serve as divisional Headquarters of the Northern Railway Division.

The railway stations of Lucknow NR, Kanpur Central, Varanasi Junction, Agra Cantt, Gorakhpur and
Mathura Junction were included in the Indian Railways list of 50 world-class railway stations.

Bus transportation
The Uttar pradesh has a large, multimodal transportation system with the largest road network in
the country. The state is well connected to its nine neighboring states and almost all other parts of

India through the national highways (NH). It boasts 42 national highways, with a total length of
4,942 km (9.6% of the total NH length in India).

The Uttar Pradesh State Road Transport Corporation was established in 1972 to provide
economical, reliable, and comfortable transportation in the state with connecting services to
adjoining states and boasts as being the only State Transport Corporation that runs in profit in the
entire nation. All cities are connected to state highways, which carry traffic between major
centres within the state. Other district roads and village roads provide villages accessibility to
meet their social needs as also the means to transport agriculture produce from village to nearby
markets. Major district roads provide a secondary function of linking between main roads and
rural roads. Uttar Pradesh has the seventh-highest road density in India, (1,027 km per 1000 km2)
and the largest surfaced urban-road network in the country (50,721 km).

Air transportation

The state has excellent civil aviation infrastructure with ChaudharyCharan Singh International Airport in
Lucknow and LalBahadurShastri International Airport in Varanasi, providing international service. and
four domestic airports located at Agra, Allahabad, Gorakhpur and Kanpur. The Lucknow Airport is the
second busiest airport in North India after the Indira Gandhi International Airport, New Delhi. The state
has also proposed creating the Taj International Airport at Kurikupa near Hirangaon, Tundla in Firozabad
district. An international Airport is also proposed at Kushinagar.

Industries

UP has also witnessed rapid industrialization in the recent past, particularly after the launch of
policies of economic liberalization in the country. As of March 1996, there were 1,661 medium
and large industrial undertakings and 296,338 small industrial units employing 1.83 million
persons. The per capita state domestic product was estimated at Rs 7,263 in 199798 and there
has been visible decline in poverty in the state. Yet, nearly 40 percent of the total population lives
below the poverty line. There are numerous types of minerals and many industries have come up
based upon these minerals. There are a number of cement plants in Mirzapur in the Vindhya
region, a bauxite-based aluminium plant in the Banda region and Sonbhadra region. In the hilly
regions of the state many non-metallic minerals are found which are used as industrial raw
materials. Coal deposits are found in the Singrauli region.
The

state

is

poor

in

mineral

resources.

The

only

considerable

deposits

are

of limestone in Mirzapur district. These are being extracted and are used largely in cement
manufacture.
Uttar Pradesh has booming electronics industries, especially in UP-Delhi-NCR and LucknowKanpur Corridor. It produces almost all types of durables.
Cottage industries, such as handloom and handicrafts, have traditionally provided livelihood to a
large number of people in the state:

Varanasi is a world famous centre of handloom woven, embroidered textiles; the main
products are Zari-embroidery and brocade-work on silk sarees. Lucknow is a centre of
'Chikan' embroidery, renowned for its grace and delicacy, a skill more than 200 years old.
Uttar Pradesh produces about 15% of the total fabric production of the country, employs
about 30% of the total workforce of artisans in India and is responsible for an annual
production of about US$0,1 million in the state.

The state has two major production centres of leather and leather products, with over
11,500 units; Agra and Kanpur are the key centres. About 200 tanneries are located in
Kanpur.

Moradabad is renowned for brass work and has carved a niche for itself in the handicraft
industry throughout the world. Lately other products that are also produced here like iron

sheet metalwares, aluminium artworks, wood works and glassware's have also become
popular with the numerous foreign buyers and are therefore being exported in large
quantities. On an average Moradabad exports goods worth Rs. 3040 billion each year,
which constitutes 40% of total exports from India under this category.

Meerut is the biggest gold market of Asia. It is the biggest exporter of sports related items
and music instruments of the country.

Economy of Uttar Pradesh

Uttar Pradesh is the most populous state in India with a population of ~200 million people. Uttar
Pradesh shares its borders with Nepal on the north, the Indian states of Uttarakhand and
Himachal Pradesh towards the northwest, Haryana, Delhi and Rajasthan on the west, Madhya
Pradesh on the south, Chhattisgarh and Jharkhand to the southeast and Bihar in the east.

Uttar Pradesh is a favoured tourist destination in India due to the location of TajMahal, one of the
Eight Wonders of the World, in Agra. In FY 2014-15, the state was ranked second and third in
terms of domestic and foreign tourists, respectively. Nearly 182.8 million domestic and 2.9
million foreign tourists visited the state during the above period.
Uttar Pradesh is the second largest producer of vegetables in the country. It produced over 21.47
million tonnes of vegetables during FY 2014-15. Uttar Pradesh is also the largest milk producing
state, accounting for nearly 17 per cent of the total milk produced in the country in FY 2014-15.

Owing to the states large base of skilled labourers, it has emerged as a key hub for IT and ITeS
industries, including software, captive business process outsourcing (BPO) and electronics. The
state has become a hub for the semiconductor industry with several major players having their
offices and R&D centres in Noida.
The state offers a wide range of subsidies, policy and fiscal incentives as well as assistance for
businesses under the Industrial and Service Sector Investment Policy, 2004 and Infrastructure &
Industrial Investment Policy, 2012. The state has well-drafted, sector-specific policies for IT and
biotechnology. In the 2015-16 Budget, the state government proposed an investment of US$ 50.3
billion for enhancements in power, health and transportation sectors.

CONTRIBUTION IN GDP
The below details is GDP of financial year 2014-2015

Particulars
Net domestic Product (at factor cost) (Rs crores) (For state)

UP
342884.05

India
9827089

Gross Domestic Product (at factor cost) (Rs crores) (For India)
Contribution of Agriculture to GDP(%)
Contribution of Industry to GDP(%)
Contribution of services to GDP(%)

19
27.9
54.7

17.01
30.02
52.97

50

46.5

45

44.8

41.8

40

37.7
34.8

35

34.8

34.2

36

30
25

22.8

20
15
10

8.9

5
0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Overview of Agriculture industry

Contribution of Agriculture industry in Indias economy

Series 1

Growth of agriculture in India

7.9
8
7
6
5

3.6

4
1.8

3
2
1

0.8
0.1

0
2009

2010

2011

2012

2013

2014

Major players of agriculture industry

Rallies India Limited
A subsidiary of the Tata Group, Rallies India Limited was founded in 1815 and is one of the
foremost agrochemical companies. It deals in agricultural products ranging from fertilisers and
pesticides to seeds and treated seed chemicals. A research and development wing of Rallies
India, involved in product development, is also situated in Bangalore.

Nuziveedu Seeds Limited

Nuziveedu Seeds Limited deals in agricultural seeds, as the name of the company suggests. The
largest producer of BT cotton seed in India, Nuziveedu Seeds Ltd. was founded in 1973. It has its
corporate and head office in Hyderabad, Telangana. The company offers seeds for a wide range
of crops: cotton, vegetable, mustard, sorghum, pearl millet, sunflower, maize and paddy seeds.
NSL group, an Indian conglomerate, is the parent company of the Nuziveedu Seeds Limited.

Lemken India Agro Equipments Private Limited

Lemken India was operationalised in 2010 and its headquarters in Nagpur, Maharashtra. It is a
recognised manufacturer of machinery needed for soil cultivation, sowing and plant protection, It
has its manufacturing plant in Nagpur, Maharashtra. Lemken has spread its business in 45
countries around the world. Lemken India is one of the leaders in producing plough, cultivator,
and Power Harrow and other agricultural implements.
Advanta Limited
Established in 1994, Advanta Limited is active in the seeds business.It is a plant genetics
company. It's corporate office and headquarters are in Hyderabad, Telangana. Advanta is
amongst the leaders in the agricultural industry having its presence in six continents. Advanta is a
world leader as far as forges and grain are concerned. It is listed in NSE and BSE indexes.

Monsanto India
Monsanto India is the Indian subsidiary of the American agricultural giant, which was founded in
1901 in Missouri, USA. Monsanto India's prime business includes production of pesticides and
seeds. Monsanto India is headquartered at Mumbai, Maharashtra and is rated amongst the top
agricultural companies in India.
Poabs Organic Estates
Based in Tiruvalla, Kerala, Poabs Organic Estates was set up in 1889. It is a multi-crop
plantation company. Poabs Organic Estates dominates the agro-based product market as far as
coffee, tea, white pepper and black pepper are concerned. The company has won many accolades
nationally and internationally in the coffee and tea segments.
National Agro Industry
National Agro Industry was established in 1970 and is based in Ludhiana,Punjab. National Agro
Industry is involved in manufacturing of agricultural equipment and enjoys a considerable
market share in the concerned sector in India. Some of the notable products of the company
include ridge planter, crop planter, paddy grain planter, seed drill, maize sheller and vegetable

seed

extractor.

Godrej Agrovet Limited

This subsidiary of Godrej group came into existence in 1990 The company deals in agro-based
products and is one of the top agricultural entities in India. The company is known for providing
bird feeds, animal feeds, agro chemicals, poultry-based products and palm oil plantation.

Rasi Seeds
As the name suggests, Rasi Seeds is involved in the agricultural seeds production. It was founded
in 1973. Seeds for pearl millet, maize and cotton are produced by Rasi Seeds. It is one of the best
biotech companies of India and has won many awards for offering best quality seed and expertise
in farming.

Taxes and duties

The department of Agriculture is under the direction of the commissioner of agriculture, who is
responsible for exercising the power and performing the duties assigned to the department by this
code or other low.
Agriculture income is exempt under the Indian Income Tax Act. This means that income earned
from agricultural operations is not taxed. The reason for exemption of agriculture income from
Central Taxation is that the Constitution gives exclusive power to make laws with respect to
taxes on agricultural income to the State Legislature. However while computing tax on nonagricultural income agricultural income is also taken into consideration.
COUNTRY

COMMODTY

MFN DUTY

CODE

RATE

SALES TAX

ADDITIONAL DUTIES &

TAXES

INDIA

8516.60

10%

No sales tax
Landing charges (1% CIF)
Countervailing duty (12.5%
(CIFD + Landing charges))
CESS (3% (Duty + CEX
(Education & Higher
Education CESS) +
Countervailing duty))
Additional Countervailing
Duty (4% (CIFD + Landing
charges + Countervailing duty
+ CESS + CEX (Education &
Higher Education CESS)))

Duty Rates
Duty rates in India can be ad valorem (as a percentage of value) or specific (rupees per unit).
Duty rates vary from 0% to 150%, with an average duty rate of 11.9%. Some goods are not
subject to duty (e.g. laptops and other electronic products).

Sales Tax
There is no sales tax in India for imported goods.

Minimum thresholds
There is no minimum threshold in India, i.e. all imports regardless of their value are subject to
duty and taxes.

 Other taxes and custom fees

Landing Charge: 1% CIF Countervailing Duty (CVD): (0%, 6% or 12% (CIFD +
Landing charges)

CEX (Education & Higher Education CESS): 3% Countervailing duty

CESS (Education + Higher Education): 3% (Duty + CEX (Education & Higher

Education CESS) + Countervailing Duty)

Additional CVD: 4% (CIFD +Landing charges + Countervailing duty + CESS

+ CEX(Education and Higher Education CESS))

Special benefits given by state government

Middlemen

benefit

at

the

cost

of

farmers

and

consumers

Delayed and/or Incomplete Payments

Avoidance of payment receipts to farmer to avoid tax

Price Fixing / Manipulation low prices arent passed to consumer and high prices arent
passed to farmers.

The government declares minimum support prices (MSP) for many cereal, pulses and oilseeds
crops=> middleman @APMC cannot exploit the farmers beyond a level (otherwise he can sell it

to the FCI) but for fruits and veggies, government doesnt declare minimum support prices
giving

ample

room

to

the

middlemen.

(1) Input Subsidies:

Subsidies can be granted through distribution of inputs at prices that are less than the standard
market price for these inputs. The magnitude of subsidies will therefore be equal to the
difference between the two prices for per unit of input distributed. Naturally several varieties of
subsidies can be named in this category.
(a) Fertiliser Subsidy:
Distribution of cheap chemical or non-chemical fertilisers among the farmers. It amounts to the
difference between price paid to manufacturer of fertiliser (domestic or foreign) and price,
received from farmers.
(b) Irrigation Subsidy:
Subsidies to the farmers which the government bears on account of providing proper irrigation
facilities. Irrigation subsidy is the difference between operating and maintenance cost of
irrigation infrastructure in the state and irrigation charges recovered from farmers. This may
work through provisions of public goods such as canals, dams which the government constructs
and charges low prices or no prices at all for their use from the farmers. It may also be through
cheap private irrigation equipment such as pump sets.
(c) Power Subsidy:
The electricity subsidies imply that the government charges low rates for the electricity supplied
to the farmers. Power is primarily used by the farmers for irrigation purposes. It is the difference
between the cost of generating and distributing electricity to farmers and price received from
farmers.

The State Electricity Boards (SEBs) either generate the power themselves or purchase it from
other producers such as NTPC and other SEBs. Power subsidy acts as an incentive to farmers to
invest in pump sets, bore-wells, etc.
(d) Seed Subsidies:
High yielding seeds can be provided by the government at low prices. The research and
development activities needed to produce such productive seeds are also undertaken by the
government, the expenditure on these is a sort of subsidy granted to the farmers.
(e) Credit Subsidy:
It is the difference between interest charged from farmers, and actual cost of providing credit,
plus other costs such as write-offs bad loans. Availability of credit is a major problem for poor
farmers. They are cash strapped and cannot approach the credit market because they do not have
the collateral needed for loans. To carry out production activities they approach the local money
lenders.
Taking advantage of the helplessness of the poor farmers the lenders charge exorbitantly high
rates of interest. Many times even the farmers who have some collateral cannot avail loans
because banking institutions are largely urban based and many a times they do not indulge in
agricultural credit operations, which is considered to be risky.

To tackle these problems the government can provide:

(1) more banking operations in rural areas-which will advance agricultural loans, and
(2) the interest rates can be maintained low through subsidisation schemes, and
(3) the terms of credit (such as collateral requirements) can be relaxed for the poor.
(2) Price Subsidy:
It is the difference between the price of food-grains at which FCI procures food-grains from
farmers, and the price at which PCI sells either to traders or to the PDS. The market price may be

so low that the farmers will have to bear losses instead of making profits. In such a case the
government may promise to buy the crop from the farmers at a price which is higher than the
market price.
The difference between the two prices is the per unit subsidy granted to the farmers by the
government. The price at which the government buys crops from the farmers is called the
procurement price. Such procurement by the government also has a long run impact. It
encourages the farmers to grow crops which are regularly procured.
(3) Infrastructural Subsidy:
Private efforts in many areas do not prove to be sufficient to improve agricultural production.
Good roads, storage facilities, power, information about the market, transportation to the ports,
etc. are vital for carrying out production and sale operations. These facilities are in the domain of
public goods, the costs of which are huge and whose benefits accrue to all the cultivators in an
area.
No individual farmer will come forward to provide these facilities because of their bulkiness and
inherent problems related to revenue collections (no one can be excluded from its benefit on the
ground of non-payment). Therefore the government takes the responsibility of providing these
and given the condition of Indian farmers a lower price can be charged from the poorer farmers.

(4) Export Subsidies:

This type of subsidy is not different from others. But its purpose is special. When a farmer or
exporter sells agricultural products in foreign market, he earns money for himself, as well as
foreign exchange for the country. Therefore, agricultural exports are
generally encouraged as long as these do not harm the domestic economy. Subsides provided to
encourage exports are referred as export subsidies.

SWOT analysis of agriculture of uttar Pradesh

Strength

Very fertile alluvial soil

Approximately 86% of total land is suitable for agriculture and out of this approximately

2/3 land is irrigated by one or either source of irrigation

Suitable land for the production of goods like rice, tomato, pulses, and horticulture
Tradition of keeping milch cattle for selling surplus milk and its products
Presence of sone canal system in southern part of the district

Weakness
As a result of fragmentation of landholding small size of farms and in absence of
cooperative farming, it is not possible to promote modern agriculture practices in a big

way
Traditional way of farming in which mainly wheat and rice is produce
Lack of agriculture extension activities in state
Lack of supportive agriculture infrastructure
No educational institute of repute is present

Opportunity
if water bodies are properly managed to increase the potential of irrigation sources then

agriculture productivity can be increased

good potential of producing horticulture crops & tomato used as raw material for the

agro processing industries

Availability of markets for processed agriculture product in the towns
High potential for development of dairy and poultry sector

Threat

land erosion by streams of ganga and this erosion is posing serious threat of life and

property of these area

flood affection area of the state due to ganga
less rain fall in the state
drought like situation and agriculture output in this area get reduce.

FINDINGS IN TERMS OF COMPARATIVE ANALYSIS OF

AGRICULTURE SECTOR
POINTS

POPULATION
LANGUAGE
CURRENCY
CONTRIBUTION TO
GDP
MAJOR INDUSTRIES

AGRICULTURE IN

AGRICULTURE IN

AGRICULTURE IN

UKRAINE

UTTAR PRADESH

GUJARAT

45.59 Million
Ukrainian
Ukraine Hryvnia
10.43%

20.07 Million
Hindi
Rupee

6.03 Million
Gujarati
Rupee

Agriculture

Fabric industry

Fishing Industry

Steel

Handloom

Dairy

Chemical

Agriculture

IT

Fuel and Oil

TAXES

Tax free state of India in

Tax free state of India in

STRENGHT

terms of agriculture
Very fertile

terms of agriculture
8 Agro-climatic

Strong natural
capacity for

alluvial soil

zones, Wide

Tradition of

varieties of soil,

agricultural

keeping milk

More than 40 major

commodities:

cattle for selling

crops.

wheat, sunflower,

surplus milk and

and other crops

its products

export of primary

Access to large

Longest sea
coastline

CIS markets and

Agro industries
policy

WTO membership

Well developed cooperatives

WEAKNESS

Vulnerability to a
number of risks

Traditional way
of farming in

70% area depend

upon rain

including soil

which mainly

Uneven rainfall

erosion, drought,

wheat and rice

Drought porn area

flood and heavy

is produce

Low technology

rain and frosts

Lack of
agriculture

capacity in rural

low in

extension

areas

comparison with

activities in state

EU countries
OPPORTUNITY

New cost effective

Good potential

High cost of power

Flood/ soil erosion

Horticultural

and environment

of producing

friendly

horticulture

Agri export Zone

technologies have

crops & tomato

i.e. Potato, Castor,

major potential

used as raw

Isabgul, Fruits.

The EU

material for the

Datepalm,

Association

agro processing

Duramwheat etc

Agreement and

industries

DCFTA will open

assimilation

Productivity is

Development

High potential

new markets

for development

Increasing

of dairy and

demand for

poultry sector

corporate and
contract farming

public-private
partnership, NGOs
work

agricultural
THREATS

products
Soil erosion and

land erosion by

Inadequate and

decreasing

streams of

erratic nature of

fertility due to

Ganga and this

rainfall

intensive

erosion is

Market fluctuation

cultivation

posing serious

Soil erosion,

Weak linkages in

threat of life and

Depletion of

the supply chains

property of

Water Table,

and lack of

these area

Salinity ingress /

Flood affection

Sea Water Ingress

access to markets

by the small

area of the state

primary

due to ganga

producers

Inadequate
processing

Political
problems capable

less rain fall in

facilities

the state

of slowing
development of
export markets

Ukraine is strong in the production of wheat, sunflower and other crops. Where as in
Uttar Pradesh they are strong in the production of sugarcane and other dairy products
Both the countries depend upon the rain for the production of the food grains and crops.
There is less use of technology in Uttar Pradesh compare to the Ukraine.
Technological reforms are needed the most in both t he countries for the better
development of food and grains
There should be proper management of local water bodies for the effective growth of
agriculture and in Ukraine new cost effective and environment friendly technologies are
to be introduced

COUNTRY OF STUDY W.R.T SPECIFIC BILATERAL TRADE

OPPORTUNITIES (in tabular form) BETWEEN TWO COUNTRIES

Ukraine
Ukraine is strong in the production of wheat,

Uttar Pradesh
Uttar Pradesh they are strong in the production

sunflower and other crops

There is a lower cost of labor force

of sugarcane and other dairy products.

There is high cost of labor force as major
population depends upon agriculture for its

There is low production and low supply of

livelihood
Traditional knowledge for the milch cattle for

dairy products in Ukraine

No rural development policies

selling surplus milk and its products

Government subsidies and policy for the
development of rural area

Bilateral Trade Relations

Current Trade & Economic Cooperation
Indias bilateral trade turnover has increased from USD 138.62 million in 1992 to USD to US$
3,103.93 billion in 2012-13 (Indias exports were US$519.66 million and imports were
US$2,584.27 million). The FDI from Ukraine to India was $1.12 million as on February 2013.
Pharmaceuticals account for majority of Indian exports to Ukraine. (India is the second largest
exporter of pharmaceutical products to Ukraine, after Germany, in value terms). A number of
Indian companies like Ranbaxy, Dr. Reddys Laboratories, Sun Group etc. have their
representative offices in Ukraine. Representatives of major pharmaceutical companies have set
up an Indian Pharmaceutical Manufacturers Association in Ukraine. The trade figures for the
last 5 years are as follows:

BIBLIOGRAPHY
1

http://en.wikipedia.org/wiki/Uttar_Pradesh

http://www.uponline.in/About/profile/geography/resources.html

http://en.wikipedia.org/wiki/Economy_of_India

http://en.wikipedia.org/wiki/Demographics_of_up

http://www.indiamart.com/indiancommercial/

http://companylist.org/Details/11586656/Ukraine/LLC_BNS_Group/

http://www.indiamart.com/indiancommercial/

http://companylist.org/Details/11586656/Ukraine/LLC_BNS_Group/

http://ageconsearch.umn.edu/bitstream/7787/1/sp07bo02.pdf

10 http://en.wikipedia.org/wiki/Subsidies_in_India

11 http://en.wikipedia.org/wiki/Law_of_Ukraine

12 http://en.wikipedia.org/wiki/Agriculture_in_India

13 http://en.wikipedia.org/wiki/Ukrainian_hryvnia

14 http://en.wikipedia.org/wiki/Economy_of_Uttar_Pradesh

SUMMARY

ABOUT THE COUNTRY OF THE STUDY: - UKRAINE

Ukarine gained independence in the year 1991 by collapsing form the Soviet
union

It is the Europes second largest country

Ukraine is situated in the central part of Eastern Europe, on the crossroads of

major transportation routes from Europe to Asia and from the Scandinavian states
to the Mediterranean region.

The Ukraines Black Sea coastline exceeds 1,500 km. Sea coasts in Ukraine are
mainly flat, except for the region near the Crimean mountains. Water temperature
at the seaside ranges from 0-8oC in winter to 25oC in summer.

The Azov Seas shore is low-lying, straight, with specific sand spits. The Azov
Sea is rather shallow. Sea water near shore freezes in the winter. The water
temperature in summer reaches 25-30oC.

There are more than 73,000 rivers in Ukraine. Ukrainian rivers mostly belong to
the basins of the Black and Azov seas. Only the Western Bug and other right
influxes of the Vistula River flow to the Baltic Sea basin. The largest rivers in
Ukraine (Dnepr and Danube rivers) are navigable.

More than 20,000 water reservoirs are situated in Ukraine, including more than
3,000 lakes. They are mostly situated in Polesye, Prichernomorskaya lowland, and
the Crimean steppe.

1 USD =

12.8241 UAH

(US Dollar)

1 INR =
(Indian Rupee)

(Ukraine Hryvnia)
0.210075 UAH
(Ukraine Hryvnia)

Overview of Industries, Trade and Commerce in the Country of study

The share of agriculture and allied sectors in India's GDP is likely to decline to
13.7% in 2012-13 on account of higher growth in the non-farm sectors,
Parliament was informed today.

GDP Country Rank 41/192 (2013)

URKRAINE

Exporter Rank: - 43/123

Importer Rank: - 35/123
Trade Balance Rank: - 110/123

Total exports in Ukraine are $68,694,495,450

Total imports in Ukraine are $84,656,666,979

Exports of goods and services (% of GDP) = 46.87%

Imports of goods and services (% of GDP) = 55.37%

Russia is the major trade partner in each and every sector of the import and export
of commodities

ORGANIC COMPANY:I
II

LlcBns Group
A.S.Export

III

Suziryak

IV

Eko-product

AGRICULTURE

PodolskySmak

Energy Xxii

Natural Foods

Cigar House "Fortuna"

Cascade-production Ltd.

Overview of Agriculture Sector in Ukraine

In 2008, Ukraine's economy was ranked 45th in the world according to 2008 GDP
(nominal) with the total nominal GDP of 188 billion USD, and nominal per capita GDP
of 3,900 USD.

Ukraine is the world's largest producer of sunflower oil, a major global producer of grain
and sugar, and future global player on meat and dairy markets. It is also one of the largest
producers of nuts. Ukraine also produces more natural honey than any other European
country and is one of the world's largest honey producers, an estimated 1.5% of its
population is involved in honey production, therefore Ukraine has the highest honey per
capita production rate in the world

Ukraine possesses 30% of the world's richest black soil, its agricultural industry has a
huge potential

Agriculture is expected to grow at 4.6 per cent in 2014. Agriculture production of food
grains this year is expected to break the 2011-12 record of 259 million tonnes (MT)

Agriculture has traditionally been one of the most important sectors of the Ukrainian
economy, given the high quality and availability of fertile land

Agriculture is therefore one of the strategically important sectors, accounting for 8.2% of
the GDP and 14.5% of total goods exports in 2010. It absorbs approximately 15.8% of
the total employment.

Indias bilateral trade turnover has increased from USD 138.62 million in 1992 to USD to
US$ 3,103.93 billion in 2012-13 (Indias exports were US$519.66 million and imports
were US$2,584.27 million).

Segments of food and agro industry

Food grains
Spices
Fruit and vegetables
Dairy products
Meat and Poultry
Flowers

The total plan outlay for agriculture and cooperation has been increased by 18% from Rs.
17,123 crore (USD 3.2 billion) in 2011-12 to Rs. 20,208 crore (USD 3.7 billion) in 201213

The allocation for RashtriyaKrishiVikasYojna was also increased by 17% to Rs. 9,217
crore (USD 1.7 billion)

Rs. 2,242 crore (USD 418.63 million) project launched with World Bank assistance to
improve productivity in the dairy sector.

Overview of selected state Uttar Pradesh

UP, is a state located in northern India It was created on 1 April 1937 as the United
Provinces, and was renamed Uttar Pradesh in 1950

Lucknow is the administrative capital of Uttar Pradesh

It covers 93,933 square miles (243,290 km2), equal to 6.88% of the total area of
India, and is the fourth largest Indian state by area.

Hindi and Urdu are the two major languages of Uttar Pradesh, though English is
also widely spoken in the corporate circles, and there is presence of other
languages like Bengali and Marathi in the state

Uttar Pradesh is the fourth largest Indian state by economy, with a GDP of 7080
billion (US$120 billion).

About 80.6% of Uttar Pradesh population was Hindu, while Muslims made up
around 18.4%, being the second-largest community and the largest minority
group. The remainder consisted of Sikhs, Buddhists, Christians, and Jains. The
literacy rate of the state at the 2011 census was 70%, which was below the
national average of 74%.

Connectivity with Gujarat is through road, rail and air transport

The state has two major production centers of leather and leather products, with
over 11,500 units; Agra and Kanpur are the key centers. About 200 tanneries are
located in Kanpur.

Varanasi is a world famous centre of handloom woven, embroidered textiles; the

main products are Zari-embroidery and brocade-work on silk sarees. Lucknow is a
centre of 'Chikan' embroidery, renowned for its grace and delicacy, a skill more
than 200 years old.

Uttar Pradesh produces about 15% of the total fabric production of the country,
employs about 30% of the total workforce of artisans in India and is responsible
for an annual production of about US$1.2 billion in the state.

Meerut is the biggest gold market of Asia. It is the biggest exporter of sports
related items and music instruments of the country.

In fiscal year ending June 2011, with a normal monsoon season, Indian agriculture
accomplished an all-time record production of 85.9 million tons of wheat, a 6.4%
increase from a year earlier. Rice output in India also hit a new record at 95.3
million tones, a 7% increase from the year earlier

Farmers Produced about 71 kilograms of wheat and 80 kilograms of rice for every
member of Indian population in 2011.

The services enhanced by the Green Revolution in the agriculture sector of Indian economy are
as follows:

Acquiring more area for cultivation purposes

Expanding irrigation facilities

Use of improved and advanced high-yielding variety of seeds

Implementing better techniques that emerged from agriculture research

Water management

Plan protection activities through prudent use of fertilizers, pesticides, and

cropping applications

India had a large and diverse agricultural sector, accounting, on average, for about
16% of GDP and 10% of export earnings. India's arable land area of 159.7 million
hectares (394.6 million acres) is the second largest in the world, after the United
States. Its gross irrigated crop area of 82.6 million hectares (215.6 million acres) is
the largest in the world.

The economy of India is the tenth-largest in the world by nominal GDP and the
third-largest by purchasing power parity (PPP).

Taxes in India are levied by the Central Government and the state governments.
Some minor taxes are also levied by the local authorities such as the Municipality.

Each tax levied or collected has to be backed by an accompanying law, passed

either by the Parliament or the State Legislature. In 2013-2014, the gross tax
collection of the Centre amounted to 13.64 Trillion.