Agriculture has an important role to play 
                                    in the Indian economy. Way back in 1950, this 
                                    sector contributed more than 50% of the GDP. 
                                    Interestingly, India had to import foodgrains 
                                    despite the predominant role of agriculture 
                                    in the Indian economy. The green revolution 
                                    introduced by concerted efforts of the Government 
                                    of India under the leadership of Dr. Swaminathan, 
                                    gradually reduced the dependence of the country 
                                    on agriculture, as crop cultivation and water 
                                    management systems improved. As a result, 
                                    the present contribution of agriculture to 
                                    the GDP is just about 22%. The food grain 
                                    production, growing at about 2-3% in the last 
                                    decade, is expected to reach a level of 209 
                                    million metric tons in 2005. India is not 
                                    only self sufficient with more than 50 million 
                                    tons of food grain as reserve, but also exports 
                                    foodgrains. Vegetable and fruit production 
                                    is about 100 million metric tons. 
                                    In the current scenario, while contribution 
                                    of agriculture to the Indian economy is reduced 
                                    significantly, more than 60% of the Indian 
                                    population directly or indirectly depends 
                                    upon agricultural economy. 
                                  India has adopted some of the newer techniques 
                                    for agriculture, but modern techniques involving 
                                    the use of plastic is still lagging behind. 
                                    The comparison with China is very apparent. 
                                    While China's agricultural sector uses modern 
                                    techniques and consumes plastic to a very 
                                    great extent, agricultural sector in India 
                                    uses a very small percent of the total plastic 
                                    consumed in the country (about 5 million tons 
                                    in 2005). IPCL, a leading producer of polymer, 
                                    from the early eighties, devoted significant 
                                    resources in developing the use of plastics 
                                    in agriculture. The company was responsible 
                                    for developing a separate section of Plasticulture 
                                    in the Government of India under the name 
                                    of National Committee of Plastic in Agriculture 
                                    called NCPA. In 2001, NCPA was renamed as 
                                    NCPAH- National Committee for Plasticulture 
                                    Applications in Horticulture to emphasize 
                                    the use of plastic in horticulture application. 
                                    NCPAH at present has 17 Precision Farming 
                                    Development Centers all around the country 
                                    for development of the plastic application. 
                                  
                                  The water distribution for agricultural usage 
                                    has made significant progress. In this application 
                                    180 KT of PVC and about 40 KT of HDPE pipe 
                                    is used every year. 
                                  The Government of India over the last 50 years has lined canals with PE film. It is estimated that 40 KT of PE film alone is used for canal lining. 
                                    Another large use of plastic is in packaging 
                                    of fertilizer. The use of fertilizer is increasing 
                                    by about 4% every year. Fertilizer packaging 
                                    is done in PE wovensacks that is lined internally 
                                    with PE film. The consumption of PE bags used 
                                    for packaging of fertilizer in 2005 is 100 
                                    KT. 
                                  All other applications of plastic do not measure to the size that are used in water distribution and fertilizer packaging. 
                                  India continues to depend upon water arising 
                                  from monsoon (rain fall harvesting) and food 
                                  grain production across the country continues 
                                  to depend upon the rainfall. The modern techniques 
                                  of micro-irrigation, where either drip or sprinkler 
                                  systems are used for efficient use of water, 
                                  are yet to be adopted by Indian farmers despite 
                                  the fact that the Government provides financial 
                                  assistance. The Government has allocated a huge 
                                  amount in its tenth and eleventh 5-year plans, 
                                  wherein the country desires to adopt 17 million 
                                  hectares. If these plans succeed, a total of 
                                  2.4 million tons of plastic will be used for 
                                  these applications. Drip irrigation rightly 
                                  has more coverage (12 million hectares). PVC 
                                  use will be at the level of 650 KT, PE will 
                                  use will be at the level of 700 KT, PE will 
                                  be required at 1650 KT, while only 100 KT of 
                                  PP will be used. In these applications pipe, 
                                  drip lateral and several types of fittings and 
                                  attachments are required. PVC pipe as well as 
                                  PE and PP pipes are usually in black colour 
                                  and do not require any further UV stability 
                                  since the addition of carbon black is adequate 
                                  enough to provide the weather resistance. 
                                  
India has wide range of weather all across 
                                    the country. It therefore needs the crop cultivation 
                                    in a controlled atmosphere. Green house as 
                                    well as low tunnel cultivation could be very 
                                    useful. In fact India has started using green 
                                    house technique for cultivation of floriculture 
                                    (particularly for rose). Ginegar is a leading 
                                    Israeli company manufacturing UV stabilized 
                                    PE films as well the other types of PE films 
                                    for rose cultivation. It is estimated that 
                                    Ginegar has almost 75% share of the business 
                                    of PE film required for green house in India. 
                                    In 2005, the total PE film used for green 
                                    house was 1800 MT. While accurate data is 
                                    not available it is believed to be 2100 MT 
                                    on the maximum side and 1600 MT on the lowest 
                                    side. Exhibit 1 summarizes the present consumption 
                                    of PE film for green house in India. There 
                                    only 4 Indian manufacturers of wide width 
                                    PE film for this application. 
                                  
                                     
                                      | Exhibit 1 | 
                                     
                                      | Green house film 
                                        suppliers In India : 2005 | 
                                     
                                      | Company | Location | Region | Type of film |  | Est. Sale | 
                                     
                                      | Domestic |  |  |  |  |  | 
                                     
                                      |  |  |  |  | Higher side | Lower side | 
                                     
                                      | Climax Synthetic | Vadodara | West | Mono layer | 100 | 50 | 
                                     
                                      | D. P. Wires Ltd | Ratlam | West | Mono layer | 300 | 200 | 
                                     
                                      | Essen Multipack | Rajkot | West | 3 layer multi film | 400 | 300 | 
                                     
                                      | K. M. Enterprise | Silvassa | West | 3 layer multi film | 200 | 100 | 
                                     
                                      | Total domestic |  |  |  | 1000 | 650 | 
                                     
                                      | Imports |  |  |  |  |  | 
                                     
                                      | Ginegar | Israel |  | 3 & 5 layer multi film | 1200 | 1000 | 
                                     
                                      | Total imports |  |  |  | 1200 | 1000 | 
                                     
                                      | Exports |  |  |  | 100 | 50 | 
                                     
                                      | Net consumption |  |  |  | 2100 | 1600 | 
                                  
                                  Green house PE film mainly requires UV stability 
                                    that could provide 3 years of weather resistance. 
                                    It therefore requires a higher dosage of UV 
                                    masterbatch. Assuming the use of 10% masterbatch, 
                                    the estimated requirement of UV masterbatch 
                                    for this application would be 180 MT in 2005. 
                                    However the local production of green house 
                                    film at the maximum level of 1000 MT in 2005 
                                    would require 100 MT of UV masterbatch for 
                                    this application.
                                    Interestingly, shade net made from PE woven 
                                    fabric has found wider usage in India. It 
                                    is estimated that the local consumption of 
                                    about 2500 MT will be reached in 2005. India 
                                    also exports about 1100 MT of shade net. Exhibit 
                                    2 describes the shade net manufacturers in 
                                    India. It requires UV stability and therefore 
                                    uses UV stabilizer in making of PE films. 
                                    Assuming the use of 5% of UV masterbatch for 
                                    shade nets the estimated requirement of UV 
                                    masterbatch is 180 MT/year in 2005. 
                                  
                                    
                                      | Exhibit 2 | 
                                    
                                      | Shade net woven PE fabric suppliers in India in 2005 | 
                                    
                                      | Company | Location | Region | Sale (MT) | 
                                    
                                      | Agro Shade Industries | Anand | West | 30 | 
                                    
                                      | Agrotech | Anand | West | 400 | 
                                    
                                      | Amrish Engineering | Vapi  | West | 60 | 
                                    
                                      | B & V Agro Irrigation Co. | Navi Mumbai | West | 350 | 
                                    
                                      | Colour Concentrate | Vapi | West | 120 | 
                                    
                                      | Dhanya Polymers | Rajpalayam | South | 60 | 
                                    
                                      | Golden Agronet | Karur | South | 60 | 
                                    
                                      | Malmo Exim Ltd. | Bhivandi | South | 370 | 
                                    
                                      | Netlon India Ltd. | Vadodara | West | 800 | 
                                    
                                      | Rishi Packers Ltd. | Daman | South | 750 | 
                                    
                                      | Shree Siddhivinayak Polyfab | Vapi | West | 100 | 
                                    
                                      | Sunpack | Rajapalayam | South | 250 | 
                                    
                                      | Supak Pvt. Ltd. | Rajapalayam | South | 250 | 
                                    
                                      | Total |  |  | 3600 | 
                                    
                                      | Export |  |  | 1100 | 
                                    
                                      | Net total |  |  | 2500 | 
                                  
                                  Another application that requires UV stability 
                                    is that of PP leno bags. Leno bags are used 
                                    for packaging of fruits, vegetables etc. It 
                                    is estimated that about 1000 MT of PP leno 
                                    bags were consumed in 2005. It needs UV masterbatch 
                                    at about 2-4% dosage level. At the average 
                                    dosage of 3%, PP leno bags would require 30 
                                    MT of UV masterbatch in 2005. A total of 310 
                                    MT of UV masterbatch for agriculture sector 
                                    was required in 2005. Nursery bags required 
                                    in large quantities, are mostly made from 
                                    recycled PE material. 
                                    For storage of food grain as well as fumigation 
                                    storage structure made from 250-micron black 
                                    PE film is widely used. It is called CAP (cover 
                                    & plinth). It is estimated that every 
                                    year 5000 MT of PE film is used for this application. 
                                  
                                  Mulching is an application that is not well 
                                  developed in India. Black or two-colour film 
                                  is more popular in India. Some also use clear 
                                  film. It is estimated that 500 MT of PE film 
                                  is used in mulch application. 
                                  
                                  From the above information it can be seen that 
                                  the average consumption of plastic in agriculture 
                                  is about 350 KT/year. At this level the share 
                                  of plastic in agriculture from the total consumption 
                                  of 5 million tonnes is just less than 0.7%. 
                                  This figure does not speak high for India. India 
                                  is a large country of 1.09 billion people and 
                                  has huge production of food grain, vegetable 
                                  and fruit production in the World. India has 
                                  to go a long way before it. 
                                
 
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