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Agriculture Business

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Malaysia was formed in 1963 when the former British colonies of Singapore and Sabah and Sarawak on the northern coast of Borneo joined the Federation. Kuala Lumpur is the capital city , while Putrajaya is the hold of the federal government. The population exceeded 27.5 million, with over 20 million living on the Peninsula in 2010. Malaysia is the
67th largest country, with a land area of 329,847 square kilometers (127,355 sq mi). It has

land borders with Thailandin West Malaysia, and Indonesia and Brunei in East Malaysia.

Malaysia Agricultural sector contributes 12 % to nation’s GDP and employing 16% of total population of Malaysia, various crops such as rubber, palm oil, cocoa, bananas, coconuts, durian, pineapples, rice, rambutan are grown. Malaysia has started organic farming in fruits and vegetables and has come up with logo "Organic Malaysia".

When we consider agriculture sector, country like Malaysia is world's main exporter of natural palm oil and rubber, which combine with saw wood and sawn cocoa, timber, pepper,t imber, tobacco and pineapple lead the growth of the sector.

The First National Agricultural Policy (1984-1991) was drafted in response to the inability of previous policies to eradicate poverty and sluggish performance of the agriculture sector as the country’s engine of economic growth. The Second National Agricultural Policy (1992-2010) and The Third National Agricultural Policy (1998-2010) updates the policy to reflect current economic challenges and realities.

In total, the agriculture sector contributed RM42b amounting to 9.5% of Malaysia’s GDP in 2004. During the period 2000-2012 the growth of the manufacturing sector continued to outpace growth in the agriculture sector. At the end of 2012, the manufacturing sector contributed 7.9% to the GDP.

N R Institute of Business Management (GLS) Page 2 The Coffee Board of India has estimated coffee consumption in India to be around

125,000 tonnes for 2013, registering a growth of 5-6 per cent annually since 2010. The foreign direct investment (FDI) inflows in agricultural services and machinery sector during April 2000 to August 2013 stood at US$ 1,629.19 million and US$ 337.35 million respectively, as per the data released by Department of Industrial Policy and Promotion (DIPP).

Tata Chemicals Ltd has announced the pan-India launch of FarmGro (foliar spray) and FarmGro G (granules) as organic plant growth regulators. Indian Council of Agricultural Research (ICAR) has sought Rs 5,700 crore (US$ 909.18 million) to strengthen KVK in the 12th Five Year Plan. The allocation for KVK was Rs 2,000 crore (US$ 319.02 million) during the 11th Five Year Plan.

In the union budget 2013-14 the total outlay of Rs 27,049 crore (US$ 4.31 billion) is proposed for the Ministry of Agriculture. The government has allocated US$ 145.8 billion for agriculture credit, an increase of US$ 26.04 billion compared to FY13. Allocation to the Rashtriya Krishi Vikas Yojana (RKVY) has been increased to US$ 2.1 billion, an increase of about nine per cent from the previous fiscal. By 2016-17, India growing at the rate of seven per cent is expected to reach the workforce demand of about 232 million from 229 million (in
2011-12) in agriculture sector which constitutes 44 per cent of the total workforce of the economy

• steepled analysis of India & Malaysia

The Malaysian agricultural does not get even much attention in the 10th Malaysia plan (2011-2015), but still accounts for 7-8% of Malaysia’s gross domestic product which is a high level for a country at Malaysia’s stage of economic development. The sector also involves

N R Institute of Business Management (GLS) Page 3 around one million workers, with about half of these being temporary migrants. Parts of the agricultural sector are highly dynamic, and have good potential for the future. The estates are what many people term ‘plantations’ with individual units being large & commonly covering 10000 hectares. Despite this good picture, however, there are major problems for the future, one being the rising cost of labor associated with increasing wages in neighboring countries from which workers are recruited.

It is not unusual in 2012, for example, for workers in West Java to earn Rp1.600.000 ( RM600) per month. National discussions of agricultural improvement have however, been unduly limited, and that the sector deserves more attention in policy thinking and implementation.

Since long time, Indian farmers have been facing a number of socioeconomic problems, such as harassment by moneylenders, inability to repay debts following crop loss, inability to get medical treatment for the family, etc. The problem is compounded by lack of positive and cooperative support from banks especially in the face of inclement weather and market fluctuations.

Agriculture is now one of the most important sectors in the Malaysian economy. In order to further develop this sector, technology has become one of the main components. Typically, dealing with the agriculture sector can entail difficulties relating to a number of factors. Consequently, to overcome such problems, farmers are being encouraged to adopt technology that suits their farm. Technology adoption demands a great deal of land preparation, a high rate of seed germination, proper seed soaking and incubation, and maintenance of water after sowing. Technology usage must be in line with the financial capacities of farmers, and farmers with limited financial ability will have little chances to adopt the technology.

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