Speaking on "finance for agriculture and related activities," at the four-day Agro Advantage Maharashtra Global Investor's Convention here, Hannart said that there were big opportunities of growth in basic foods such as dairy, animal feed and poultry, wheat milling and processing and beverages (including tea and coffee).

As per the estimates by McKinsey & Company/Faida Report, market size of India basic foods sector will be as follows: dairy - $11 billion, animal feed and poultry - $10 billion, wheat milling and processing - $ 6 billion and beverages - $ 4 billion by 2005.

He mooted the concept of "large market - high growth segment" for India and stressed the need for the development of larger food and agriculture companies and necessaryfunding arrangements.

He pointed out that the food and agriculture companies should take into account change in consumer attitude towards processed food and modernise distribution and retail system.

He said that the structure of these companies will have to be changed and the supply of raw material should become more efficient and low cost. "Inputs, infrastructure and improved market systems (between farmer and processor) are important in the changing atmosphere," he added.

Hannart said that there should be proper advisory services, project financing, venture capital, strategic and private equity and asset financing including off balance sheet financing to materialise investments in this sector.

Hannart said that the food and agriculture companies should take advantage of venture capital - $400 million Glide Ventures Asia Fund. He said the possibility of creation of Rabo Bank's India Fund in future can not be ruled out. He called upon these companies to use international network to find strategicand financial investors abroad.

Hannart said that Rabobank with a turnover of $250 billion has used the purchase-on-sale structure, the purchase and operation structure and the repurchase structure for off balance sheet financing on inventories like tobacco, cheese, malting barley, black pepper, cabola, rubber, tomato and paste.