Karnataka Horti Produce - Rabo Bank

National Horticulture MissionNational Horticulture MissionNational Horticulture MissionNational Horticulture Mission

Revised Action Plan for Revised Action Plan for Revised Action Plan for Revised Action Plan for KKKKaaaarnatakarnatakarnatakarnataka

Prepared byPrepared byPrepared byPrepared by

Rabo India Finance Pvt. LtdRabo India Finance Pvt. LtdRabo India Finance Pvt. LtdRabo India Finance Pvt. Ltd

fffforororor

Ministry of AgricultureMinistry of AgricultureMinistry of AgricultureMinistry of Agriculture

Government of IndiaGovernment of IndiaGovernment of IndiaGovernment of India

SeptemberSeptemberSeptemberSeptember 2005 2005 2005 2005

Bidar

Raichu

Belgaum

Bijapur

Gulbarga

Bagalk

Bellary

Haveri Davange

Shimoga

Udupi

Chitradurga

Chickmagal

South Kannada

Kolar

Hassan

Mysore

Bangalore Urban

Tumkur

Koppal Gada

Dharwad

North Kannada

Mandy

Chamarajnagar

Bangalore Rural

Kodag

NHM - Action Plan for Karnataka

Rabo India 2

Table of ContentsTable of ContentsTable of ContentsTable of Contents

1. Introduction..3

2. Potential of Horticulture in West Bengal..5

3. Demand Supply situation of horticultural products in West Bengal .15

4. Market Linkages.18

Food Parks

AEZs

Mandis

Processing units

Cold storages

5. Selection of Crops for intervention and rationale.27

6. Prioritization of crop clusters 30

7. Recommended Action Plan for 2005-06 ..31

8. Annexure I: Summary plans for three years .53

9. Annexure II: Crop Clusters..64


Rabo India 3

Chapter 1Chapter 1Chapter 1Chapter 1

IntroductionIntroductionIntroductionIntroduction

1.1 Background1.1 Background1.1 Background1.1 Background

Rabo India was appointed by Ministry of Agriculture to review action plan submitted by

the state. Ministry of Agriculture circulated operational guidelines to the States detailing

Mission objectives, structure, procedures for approval and implementation, ongoing

schemes, mission intervention and management and overall targets under NHM. Based

on the guidelines, states have submitted their reports.

The objective of the review is to develop a demand driven approach for horticultural

products. The review included the following:

Identification of Market linkages of production areas in each of the states with

o Agri Export Zones

o Food Parks

o Existing processing facilities

o Terminal Markets

o Existing mandis

Mapping of production clusters of various horticultural crops with markets

Prioritization of crops and clusters

Identification of quality and varietal issues as per the market needs

Identify missing links between farmers and processors, traders and retailers

1.2 Methodology1.2 Methodology1.2 Methodology1.2 Methodology

Rabo Bank discussed the initial plan with state horticulture department. It was followed

by collection of data for mapping market linkages (Food Parks, AEZs, Processing

facilities, pack houses, cold storages, mandis). Rabo Bank held discussions with other

stakeholders including processors with facilities in the state and traders in mandis. Rabo

Bank used its existing databases and international network to have detailed discussion

with the processors operating in the state to analyze problems related to Fruits and

Vegetable processing, sourcing, infrastructure and regulation governing the state. Rabo

Bank also interacted with researchers and scientists of renowned Agricultural

Universities operating in the State, taking a cross reference on the cultivation technique,

possibility and nature of the intervention sought.

1.3 Guiding Principals under NHM1.3 Guiding Principals under NHM1.3 Guiding Principals under NHM1.3 Guiding Principals under NHM


Rabo India 4

The horticulture sector has contributed significantly to GDP in agriculture. The

objectives of the National Horticulture Mission is to double the horticulture production

by 2011-12.

The Mission will focus on select crops and few districts in the state, concentrating

resources in select districts for overall Horticultural development. The objective is to

bring select crops and districts in prominence in the state horticultural map. The

Mission would adopt an end-to-end approach covering production, post harvest

management, processing and marketing to assure appropriate returns to

growers/producers; promote Research and Development (R&D) of technologies for

production, post-harvest management and processing in potential belts/clusters;

Enhance acreage, coverage, and productivity in potential belts/clusters; Adopt a

coordinated approach and promote partnership, convergence and synergy among R&D,

processing and marketing agencies in public as well as private sectors, at all levels;

promote, where appropriate, National Dairy Development Board model of cooperatives

to ensure support and adequate returns to farmers; Facilitate capacity-building and

Human Resource Development. State and sub-state level structures will be evolved,

keeping in view the need for getting adequate returns for the produce of the farmers

and eliminating middlemen to the extent possible.


Rabo India 5

ChaChaChaChapter 2pter 2pter 2pter 2

Horticulture in KarnatakaHorticulture in KarnatakaHorticulture in KarnatakaHorticulture in Karnataka

2.1. Introduction2.1. Introduction2.1. Introduction2.1. Introduction

Karnataka is the eighth largest State in the country and it is located in southern

peninsular India, with a geographical area of 190.50 lakh hac., accounting for 5.84% of

the total geographical area of the country. The State consists of 27 districts with 175

taluks. Karnataka is a maritime State with a coastline of 287 kms. covering the districts

of Uttara Kannada, Dakshina Kannada and Udupi with nine ports excluding new

Mangalore port. Except Karwar, the remaining ports are riverine ports which need to be

developed for cost efficient movement of goods. The State has a road length of 1.49

lakh kms. and a railway route length of 3041 kms.

The Economy of Karnataka is well diversified and according to the Economic Survey

2003-04 Karnataka contributes 5.0% to National NDP. Agriculture in Karnataka

contributes 26.7% of the State GDP and employs 71% of total workforce. The land

topography is suited for agriculture and 83% of area (Soil types) is suitable for

agriculture. The State has a high geographical diversity with ten agro climatic zones. The

Net sown area is 54% of the total Geographic area against the national average of 46%.

The Gross cropped area has exceeded 116 lakh hac with a cropping intensity of 112%.

Small and marginal farmers accounts for 73% of total holdings and 34% of net cultivated

land. Though Agro climatically suited, water is a main constraint in horticultural

development. Irrigation covers 25% of the net cropped area and remaining 75% is

rainfed. Horticulture crop covers 14.8% of the net cultivable area in the State with an

annual production of 118.2 lakh tones. Horticulture contributes 40% of the agriculture

income and 80% of the agricultural exports.

2.2. 2.2. 2.2. 2.2. AgroAgroAgroAgro----Climatic Zones/RegionsClimatic Zones/RegionsClimatic Zones/RegionsClimatic Zones/Regions

As per the Agro-climatic Regional Planning (ACRP) of Planning Commission, Government

of India, Karnataka State falls in Zone X (Southern Plateau and Hiils Region) and Zone XII

(West Coast Plains and Ghat Region). Within the State, there are 10 agro-climatic zones.

Based on physio-graphic features, Karnataka can broadly be divided into four regions

viz., Coastal, Malnadu (Hilly), Northern Plateau and Southern Plateau Regions. The

Coastal Region lies between the Western Ghats and the Arabian Sea. It is a narrow region

with a maximum width of 40 km. It has elevations upto a maximum of 200 m. The

Malnad region comprises steep ranges with valleys and hills running almost parallel to

the coast. It is thickly vegetated with evergreen forests and receives moderate rainfall.

The Northern Plateau region is almost a flat terrain with elevations ranging from 300 m.

to 650 m. It falls in the rain shadow region and is prone to drought. The Southern


Rabo India 6

Plateau region has undulating and rolling topographic features with sporadic hills. It has

elevations ranging from 600 m. to 1000 m.

2.3. 2.3. 2.3. 2.3. Irrigation Irrigation Irrigation Irrigation

The normal rainfall in the State is in the range of 1100 mm to 1200mm. According to

the revised estimate of Central Ground Water Board, ultimate irrigation potential in the

State through ground water resources is 28.58 lakh ha. The ultimate irrigation potential

is estimated at 73.58 lakh ha. including 38.58 lakh ha. under minor irrigation sector and

35.0 lakh ha. under medium and major irrigation sectors. The total irrigation potential

created in Karnataka is 29.73 lakh ha. including 20.15 lakh ha. under major and

medium irrigation projects and 9.58 lakh ha. under minor irrigation projects using

surface water resource. The present stage of development of irrigation resources is only

40.4%, thereby indicating the scope for further development of irrigation infrastructure

in the State for strengthening and stabilizing agricultural production, especially in the

back drop of the prevalent drought situation.

Out of the Net Sown Area of 104.89 lakh ha. (1998-99), the net area irrigated by all

sources was 24.92 lakh ha. The major sources of irrigation in Karnataka were canals

(38%) followed by wells (19%), borewells (18%), tanks (10%) and lift irrigation (4%).

Region-wise net irrigated area by various sources in the State is furnished in Exhibit 2.A.

Exhibit 2.A.Exhibit 2.A.Exhibit 2.A.Exhibit 2.A. [Area in lakh

ha.]

Region Canals Tanks Wells Bore

Wells LI

Other

sources Total

NIA as %

of

NSA

Coastal 0.14 0.41 0.03 0.03 0.64 1.25 36.76

Malnad 0.81 1.00 0.05 0.25 0.02 0.21 2.35 22.97

Northern

Plateau

5.76 0.51 3.29 1.90 0.80 1.62 13.88 22.64

Southern

Plateau

2.95 0.90 1.04 2.31 0.13 0.11 7.44 24.84

Total 9.52 2.55 4.79 4.50 0.98 2.58 24.92 23.76

Source : Directorate of Economics & Statistics, Bangalore

The trend in proportion of area irrigated by different sources indicates that the

proportion of area irrigated through wells to the total NIA is 37%, tanks 10% and canals

38%. Erratic monsoon and silting results in unscientific management practices and water

scarcity situation in the State. The rehabilitation of tanks in the State requires


Rabo India 7

improvements in the design of tanks and also massive investments through budgetary

supports.

Due to the limited availability of water and depletion of groundwater levels in some of

the areas as also significant proportion of the area under commercial crops, water

saving devices like sprinklers and drip irrigation sets, especially in water scarce areas,

are likely to play a crucial role in future and need to be promoted to maximize overall

productivity. Conjunctive use of water resources coupled with proper drainage system

particularly in canal irrigated areas, would maximize the productivity and would also

arrest degradation of land due to water logging and salinity.

2.4. 2.4. 2.4. 2.4. CroppingCroppingCroppingCropping Intensity and Cropping Pattern Intensity and Cropping Pattern Intensity and Cropping Pattern Intensity and Cropping Pattern

The Net Sown Area in Karnataka is estimated 104.89 lakh ha. accounting for 54% of the

geographical area. Thus, the Net Sown Area as a percentage of geographical area in the

state remained near static over the 28 year period. However, during the above period,

the Net Irrigated Area as a percentage of Net Sown Area increased from 11 to 24 and the

cropping intensity increased by 11 percentage points from 106% to 117% resulting in

increase in Gross Cropped Area (GCA). This implies the need for more investments in

irrigation infrastructure for further increasing the cropping intensity and GCA in the

state. Paddy, Ragi, Jowar, Bajra, Maize, Tur, Groundnut, Sugarcane, Cotton, Arecanut and

Coconut are some of the major crops grown in the State.

2.52.52.52.5. . . . Potential of HorticulturePotential of HorticulturePotential of HorticulturePotential of Horticulture

The diverse agro-ecological conditions prevailing in the State facilitates growth of large

varieties of horticulture crops covering fruits, vegetables, flowers, spices, plantations,

roots and tuberous crops, aromatic crops, medicinal crops, oil palm etc. There has been

a significant development in horticulture sector since the last two to three decades.

There is a clear shift from Agriculture to horticulture sector which is mainly attributed to

the fact that Horticulture crops are perennial in nature and are less labour oriented and

highly remunerative. Karnataka state at the national level stands first in floriculture,

second in spice and plantation crops, third in Coconut and fifth in fruits and vegetables.

Of the total cultivated area of 108 lakh ha. in Karnataka, horticulture crops are grown in

an area of 15.30 lakh ha. with an annual production of 118 lakh tons annually.

Karnataka is endowed with congenial agro-climatic conditions prevalent in six different

agro-climatic zones such as the southern dry zone, hilly zone, coastal zone, central

transition region, northern dry zone and eastern dry zone and this has made it possible

to grow different varieties of horticulture crops. Karnataka is the first state to set up a


Rabo India 8

separate Department of Horticulture in India for the overall development of horticulture

in the state. The major horticultural crops that are grown in the State are:

a. Fruit crops: Mango, Banana, Guava, Sapota, Grapes, Jack, Papaya, Citrus, Pineapple,

Fig, Annonaceous fruits, Avocado, Ber, rose apple

b. Vegetable crops: Potato, Tomato, Brinjal, Cole crops, Peas, Beans, Okra, Radish,

Beetroot, Carrot, Tapioca, Sweet potato, leafy vegetables, capsicum, gourds and

cucurbits

c. Plantation and Spice crops: Coffee, Arecanut, Coconut, Cashewnut, Beetlevine, Cocoa,

Pepper, Cardamom, Ginger, Turmeric etc. Vanilla is also being grown in the transitional

belt.

d. Flower crops: Traditional flower crops such as Chrysanthemum, Jasmine, Crossandra,

Rose, Tuberose, Aster, Marigold, Champaka, Roses, Gerbera, Carnation, Heliconia etc.

e. MAP crops: Medicinal plants like sarpagandha, ashwagandha, ghritakumari, ayapana,

anantamul, antamul, chirata and aromatic plants like lemon grass and Citronella.

ExhibExhibExhibExhibit 2.B. Present area and production under Horticulture cropsit 2.B. Present area and production under Horticulture cropsit 2.B. Present area and production under Horticulture cropsit 2.B. Present area and production under Horticulture crops

Sl. No. Crop Area in

lakh ha.

Production in

lakh tons

1. Fruits 2.61 41.65

2. Vegetables 3.77 66.54

3. Spices 2.45 4.97

4. Plantation crops 6.26 3.34

5. Flower crops 0.21 1.57

6. Medicinal/Aromatic crops 384/665

(in hac.)

4525/9144

(in tons)

Total 15.30 118.20

Exhibit 2.C.Exhibit 2.C.Exhibit 2.C.Exhibit 2.C.Major Production area of important fruits in KarnatakaMajor Production area of important fruits in KarnatakaMajor Production area of important fruits in KarnatakaMajor Production area of important fruits in Karnataka

Fruit Period Of Availability Main Production Areas

Mango May-June Bangalore, Tumkur, Kolar, Belgaum, Dharwad,

Haveri, Chickmagalur

Sapota May - June Hassan, Chichmagalur, Kolar, Chitradurga,

Dharwad, Belgaum

Banana Around the year Hassan, Chichmagalur, Kolar, Chitradurga,

Davangere, Tumkur


Rabo India 9

Grapes Feb - May Koppal, Belgaum, Bijapur, Bagalkot, Bellary,

Davangere

Pomegranate June - Oct Gulbarga, Raichur, Koppal, Bijapur, Bagalkot,

Bellary, Davangere, Belgaum, Chitradurga

Exhibit 2.D. Exhibit 2.D. Exhibit 2.D. Exhibit 2.D. Production (MT) Production (MT) Production (MT) Production (MT) Exhibit 2.E. Exhibit 2.E. Exhibit 2.E. Exhibit 2.E. Area (Hac)Area (Hac)Area (Hac)Area (Hac)

Exhibit 2.F. Exhibit 2.F. Exhibit 2.F. Exhibit 2.F. Major Production area of important vegetables iMajor Production area of important vegetables iMajor Production area of important vegetables iMajor Production area of important vegetables in Karnatakan Karnatakan Karnatakan Karnataka

VEGETABLE Period Of

Availability

MAIN PRODUCTION AREAS

Tomato Around the year Bangalore, Tumkur, Kolar, Hassan, Haveri,

Davangere

Cabbage Around the year Kolar, Bangalore U, Bidar, Haveri, Hassan

Cauliflower Around the year Bangalore U & R, Kolar, Belgaum, Haveri,

Kodagu

Brinjal Around the year Gulbarga, Raichur, Hassan, Bangalore,

Bijapur, Bagalkot, Belgaum

Ladyfinger Mar - July Koppal, Belgaum, Bijapur, Mysore, Udipi,

Raichur

Gherkins Bangalore, Kolar, Tumkur, Hassan,

Chitradurg, Dharwad, Bagalkot

Rose Onion Mar May Bangalore and Kolar

Onion Mar - May Gadag, Dharwad, Belgaum, Bijapur, Bagalkot,

Bellary

Exhibit 2.G. Exhibit 2.G. Exhibit 2.G. Exhibit 2.G. Production ( MT) Production ( MT) Production ( MT) Production ( MT) Exhibit 2.H.Exhibit 2.H.Exhibit 2.H.Exhibit 2.H. Area (Hac) Area (Hac) Area (Hac) Area (Hac)

Others, 69922Pineapple, 86477

Jackfruit , 231568

Guava, 150657

Papaya, 253967

Pomegranate,

124666

Citrus, 337315

Mango, 1103677

Banana, 1289863Sapota, 223464

Grapes, 167044

Pineapple, 2142 Others, 5920

Mango, 117381

Sapota, 21013

Banana, 52560

Citrus, 14996

Jackfruit , 6777Papaya, 3808

Guava, 8079

Pomegranate,

12728

Grapes, 9721


Rabo India 10

Karnataka is one of the largest producer of flowers in the country, the present export of

flowers from the State is valued at Rs. 35.0 crore. The focus on Rose, Chrysanthemum,

Crossandra and traditional flowers development.

Exhibit 2.I. Exhibit 2.I. Exhibit 2.I. Exhibit 2.I. Major Production area of importanMajor Production area of importanMajor Production area of importanMajor Production area of important Flowers in Karnatakat Flowers in Karnatakat Flowers in Karnatakat Flowers in Karnataka

Area CoverageArea CoverageArea CoverageArea Coverage

Flowers MAIN PRODUCTION AREAS

Marigold Bijapur, Bellary, Bangalore, Tumkur,

Kolar, Haveri, Mysore, Chamarajanagar,

Mandya

Jasmine Bijapur, Bellary, Tumkur, Mysore,

Davangere, Mandya, Bangalore, Kolar,

Chamarajanagar

Cut-

flowers

Tumkur, Mandya, Mysore, Bangalore,

Kolar, Hassan, Chickmagalur, Kodagu,

Udipi, Shimoga

Rose Bangalore, Kolar, Dharwad, Udipi,

Belgaum

Tube rose Bangalore U & R, Kolar, Mysore and

Haveri

Others, 1009332

Cabbage, 128344

Tomato, 952849

Carrot, 79864

Radish, 53172

Ladyfinger, 73170

Onion, 723067

Capsicum, 28629

Beans, 136357Brinjal, 379947

Gourds, 270813

Peas, 20078

Cauliflower, 36230

Potato, 602017

Peas, 1387

Cabbage,

6697

Tomato,

35429

Potato, 59980

Cauliflower,

2316

Beans, 11900

Brinjal, 16641Capsicum,

2414

Gourds, 19529

Onion, 115035

Ladyfinger,

8853

Radish, 4685

Carrot, 4247

Others, 77783

Aster

5% Cossandra

10%

Gladiolus

1%

Rose

7%

Chrysanthemum

16%

Marigold

24%

Jasmine

22%

Others

7%

Tube Rose

8%


Rabo India 11

Exhibit 2.J. Exhibit 2.J. Exhibit 2.J. Exhibit 2.J. Production Lac SpikesProduction Lac SpikesProduction Lac SpikesProduction Lac Spikes

Exhibit 2.K. Exhibit 2.K. Exhibit 2.K. Exhibit 2.K. Production (MT)Production (MT)Production (MT)Production (MT)

2.6. Analysis of important horticultural crops in Karnataka.2.6. Analysis of important horticultural crops in Karnataka.2.6. Analysis of important horticultural crops in Karnataka.2.6. Analysis of important horticultural crops in Karnataka.

Mango

Total area under cultivation is 117,381 hac with a production of 1103677 tonnes

Grown in all zones except Northern dry, Northeastern dry, Hilly and Coastal

zones

Key varieties are Badami, Raspuri, Totapuri, Neelam, Beganpalli, Mallika, Malgoba

Fresh exported to UAE, EU, Saudi Arabia and Kuwait. Good demand for pulp in

Gulf countries

Key Issues: Irregular bearing, lack of adequate planting material, Senile

plantation, leasing of orchards with lack of proper post harvest management,

farmer training on post harvest practices and value addition required-

Pomegranate

Total area under cultivation is 12728 hac with a production of 124666 tonnes

Proposed areas plans for North Eastern Dry and Northern Dry Zones

Key varieties are Jyothi, Ganesh, Mirudula, Ruby Red, Bhagwa

No. 1 in Exports (1000 tonnes) Export to EU

Key Issues: Cultivated as a intercrop, fruit cracking, variation in yield, education

of farmers and exploring marketing potential

Grapes


The key growing districts are Koppal, BElgaum, Bijapur, Bagalkot, Bellary and

Davangere

Key varieties are Bangalore blue, Anab-e-shahi, Thompson Seedless, Gulabi,

Arka Vathi, Shyam,

Exports to UK, Saudi Arabia, UAE, Netherlands, Bangladesh and Belgium.

Tube

Rose,

8760

Gladiolus,

255

Rose,

2379

0

10000

20000

30000

40000

50000

Aste

r

Cossandra

Jasm

ine

Marigold

Chry

santh

em

um

Oth

ers

Mt.


Rabo India 12

Key Issues: Lack of commercial processing varieties, coloured & short berries and

lack of knowledge on cultivation, pruning, requirement of wine policy in the State

Banana


Grown in all zones except Northern dry and Northeastern dry

Key varieties are Poovan, Dwarf Cavendish, Rasabale, Robusta, Maduranga,

Chandrabale

High demand in the domestic markets, exports possibility of fresh to the Gulf

Countries and potential demand for processed products in the domestic and

export markets

Key Issues: Productivity low, irrigation is a major constraint, lack of infrastructure

for market handling and processing, quality check for tissue culture saplings and

nematode infestation

Pineapple


Shown a steady increase in area in recent times

The key growing districts are Shimoga, Uttar Kanada, Dakshin Kannada, Kodagu

and Udipi

Key varieties are Giant Kew and Queen

High demand in the domestic and exports market for fresh and processed

products

Key Issues: availability of quality seedlings, Mostly rainfed, ratoon crop can lead

to yield loss, black rot disease

Onion


The key growing districts are Bellary, Chitradurga, Bijapur, Dharwad, Raichur,

Kolar (cultivated across the state)

Distinct export variety Bangalore Rose Onion grown in Bangalore and Kolar

Key varieties are Bellary Red, Rose onion, NP53, Arka Niketan, Kalyan, Pragati,

Agri Found light red and dark red

Exports to Malaysia, Middle East countries, Sri Lanka, Singapore

Key Issues: Lack of export quality varieties, lack of Post harvest infrastructure in

case of preservation and lack of irradiation centers

Gherkins


The key growing districts are Kolar, Bangalore Rural, Chitradurga, Dharwad,

Tumkur, Bagalkot and Hassan

Key varieties are Peto, Asgrow and Ejax

Accounts for 80% to 90% of National exports worth Rs. 140 crore in 2003-04

(70000 tonnes per annum)


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Export potential in US 50% demand, EU 43% of demand and rest Asia Pacific

countries

Successful model of contract farming

Key Issues: Marketing assistance, duties in international markets, high yielding

varieties and export promotion

Tomato


Cultivated in almost all districts

Key varieties are Hybrids from Commercial companies

Key Issues: Lack of good seedling and nursery facilities, post harvest

infrastructure, cold chain for storage and processing facilities, lack of export

potential, need to explore scope of value addition and scope of export of value

added products

Chili

Total area under cultivation is 37728 hac with a production of 448717 tonnes in

the coastal districts

Cultivated in all districts

Varieties cultivated are G3, G4, G5, Sinduri, Kiran, Aparna (Baidgi)

Exports of dry chilies to Pakistan, Europe, Arabian Countries and Soviet Union

Key Issues: Nursery and planting material required, quality control for processed

products, high freight rates

Ginger

Total area under cultivation is 13628 hac with a production of 136688 tonnes in

the coastal districts

Key growing districts are Kodagu, Shimoga, Hassan, Bidar and Chickmagalur

Key varieties are Maran, Wynad, Ernad, Manantoddy, China, Rio-de-Janeiro,

Exports about 80% of produce in primary form, markets are Middle East, US and

EU

Key Issues: Lack of value added products, post harvest infrastructure, disease

control and price fluctuation

Pepper


The key growing districts are Kodagu, South Kanada, North Kanada, Shimoga,

Chickmagalur

Key varieties are Paniur 1, Bilimalligesara, Karimalligesara, Doddiga, Kaluvalli,

Malligesara, Karimunda

Exports to Russia, USA, Canada, Italy and Czechoslovakia, processed pepper

products to USA, Germany, UK, Netherlands and France


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Key Issues: Low productivity, Requirement for good cultivar and replacement of

senile cultivation, requirement of drying and processing units, lack of research

under diverse agro climatic condition

Cashew


Cultivated in all coastal districts

Largest processing capacity in the State of 100,000 Tonnes

Varieties cultivated are Ullal 1,2,3,4, Chintamani 1, UN-50, NRCC1,2

Export potential to US, EU, UK, UAE, Japan and Australia

Key Issues: Nursery and planting material required, low productivity, lack of post

harvest facilities, senile plantation

Cocoa


Cultivated in all coastal districts

Key varieties are F1 Hybrid between Creollo and Forrestor

Beans Marketed locally, as 50% of the total domestic demand is met through

imports

Key Issues: Only cultivated as a intercrop in coconut and arecanut garden, buy

back arrangement not clear, research needs for varieties, home scale chocolate

to be encourage

Floriculture

Total area covered is around 21000 hac with a production of 1.47 lac tonnes of

loose flowers and 1200 crore spikes of cut flowers

Key growing districts are

Traditional flowers: Udipi, Shimoga, Bijapur, Bellary, Bangalore, Tumkur,

Kolar, Haveri, Mysore, Chamarajanagar, Mandya

Cut Flowers: Bangalore, Kolar, Dharwad, Udipi, Belgaum

The main flowers cultivated are Rose, marigold, Jasmine, Chrysanthemum,

Gladiolus, Aster, Tube Rose, Crossandra, Birds of Paradise, Carnation,

Anthurium, Gerbera

There are 35 high tech floriculture units in the State covering 150 hacs

High demand for traditional flowers in the domestic market, caters to export

market for cut flowers

Exports in the range of Rs. 35 40 crore

Key issues: Availability of planting material, training on scientific cultivation,

Greenhouse technology and technology dissemination, Lack of adequate post

harvest support


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2.7. 2.7. 2.7. 2.7. Key Issues associated with State HorticultureKey Issues associated with State HorticultureKey Issues associated with State HorticultureKey Issues associated with State Horticulture

Rationalization of varieties, erratic yield and Low productivity and use of public

bred varieties e.g. in case of mango

Lack of suitable varieties for Processing (e.g. wine variety grape, fig)

Endemic diseases (Panama wilt in Banana, Pepper wilt, Bacterial disease in

Pomegranate)

Leasing of orchard is a common practice, prevent farmer from taking interest in

post harvest

Lack of proper maintenance of orchards

Need to explore marketability of traditional varieties (Rasbare)

Price fluctuation in vegetable and glut situation which affects farmers

Lack of information in trends of markets

High wastage due to lack of proper post harvest practices

Awareness & Education for utilisation of market infrastructure and post harvest

facilities

High transportation and air freights


Rabo India 16


Demand Supply Situation of Horticulture in Demand Supply Situation of Horticulture in Demand Supply Situation of Horticulture in Demand Supply Situation of Horticulture in KarnatakaKarnatakaKarnatakaKarnataka

3.1. 3.1. 3.1. 3.1. Demographic FeaturesDemographic FeaturesDemographic FeaturesDemographic Features

As per 2001 Census, Karnataka's population was 52.73 millions (5.13% of the total

population of the country) including rural population of 34.81 millions (66% of the total)

and urban population of 17.92 millions (34%). During the period 1991-2001, the

decadal growth of population was 17.2% in the State as against 21.3% in India. The

density of population in the State was at 275 persons per sq.km. The work force of

Karnataka as per 2001 Census was 235.22 lakhs comprising 193.58 lakhs main workers

and 41.64 lakhs marginal workers. The cultivators (69.36 lakhs) and agricultural

labourers (62.09 lakhs) together accounted for about 67.9% of the main workers in the

State. The land use pattern in the State, region-wise, is shown in Exhibit 3.A.

Exhibit 3.A.Exhibit 3.A.Exhibit 3.A.Exhibit 3.A. Land Availability Land Availability Land Availability Land Availability

(Area : lakh ha.)(Area : lakh ha.)(Area : lakh ha.)(Area : lakh ha.)

RegionRegionRegionRegion GeographicGeographicGeographicGeographic

al areaal areaal areaal area ForestForestForestForest

Other Other Other Other

landlandlandlands #s #s #s #

Net Net Net Net

sown sown sown sown

areaareaareaarea

Gross Gross Gross Gross

cropped cropped cropped cropped

areaareaareaarea

Cropping Cropping Cropping Cropping

intensityintensityintensityintensity

Coastal 18.58 10.43 3.19 3.40 4.21 123.82

Malnad 28.53 7.16 10.13 10.23 11.46 112.02

N. Plateau 89.32 6.50 20.30 61.31 73.13 119.28

S. Plateau 54.07 6.54 21.36 29.95 34.32 114.59

Total 190.50190.50190.50190.50 30.30.30.30.63636363 54.9854.9854.9854.98 104.89104.89104.89104.89 123.12123.12123.12123.12 117.38117.38117.38117.38

Source : Directorate of Economics & Statistics, Bangalore.

# includes non agricultural, barren, cultivable waste, permanent pastures, trees & groves

and fallow lands.

3.2. 3.2. 3.2. 3.2. Operational HoldingsOperational HoldingsOperational HoldingsOperational Holdings---- Region Region Region Region----wise analysiswise analysiswise analysiswise analysis

Distribution of operational holdings depict a skewed pattern in the State. Small and

marginal holdings accounted for 73% of the total number of holdings while occupying

only 34% of the total area. In other words, a large proportion of farmers in Karnataka

possessed a small proportion of land. The land holding pattern in the State (1995-96),

region-wise, is as shown in Exhibit 3.B.

Exhibit 3.B. Land Holdings summaryExhibit 3.B. Land Holdings summaryExhibit 3.B. Land Holdings summaryExhibit 3.B. Land Holdings summary

(No. : in lakh) (Area : lakh ha.)

Land holdingsLand holdingsLand holdingsLand holdings CoastalCoastalCoastalCoastal MalnadMalnadMalnadMalnad Northern Northern Northern Northern

PlateauPlateauPlateauPlateau

Southern Southern Southern Southern

PlateauPlateauPlateauPlateau TotaTotaTotaTotallll


Rabo India 17

Marginal (Below 1

ha.)

Area

No.

1.09

3.03

2.17

4.37

3.28

5.78

5.94

12.92

12.48

26.10

Small 1-2 ha. Area

No.

1.11

0.79

3.14

2.21

12.56

8.46

7.99

5.61

24.80

17.07

Semi medium 2-4

ha.

Area

No.

1.14

0.42

3.12

1.15

20.19

7.31

8.53

3.16

32.98

12.04

Medium 4-10 ha. Area

No.

0.89

0.16

2.75

0.48

24.03

4.04

7.22

1.26

34.89

5.94

Large > 10 ha. Area

No.

0.30

0.02

1.57

0.08

11.24

0.78

2.82

0.18

15.93

1.06

TotalTotalTotalTotal Area Area Area Area

No.No.No.No.

4.534.534.534.53

4.42 4.42 4.42 4.42

12.75 12.75 12.75 12.75

8.298.298.298.29

71.30 71.30 71.30 71.30

26.3726.3726.3726.37

32.50 32.50 32.50 32.50

23.1323.1323.1323.13

121.08 121.08 121.08 121.08

62.2162.2162.2162.21

Source: Directorate of Economics & Statistics, Bangalore

The decline in the size of holding is attributed to division of families resulting in

fragmentation of holdings, which in turn affects the viability of certain investments. The

average size of a holding of marginal and small farmers, being only 0.86 ha., restricts

the scope for financing a few land based activities to individuals. Analysis of the

consumption pattern from the NSSO published data is supplied in Exhibit 3.C.

Exhibit 3.C. Consumption AnalysisExhibit 3.C. Consumption AnalysisExhibit 3.C. Consumption AnalysisExhibit 3.C. Consumption Analysis

1996-

97

1997-

98

1998-

99 1999-00

2000-

01 2001-02 2002-03 CAGR

cereals 49430.8 49297.5 52989.6 66658.3 62252.1 62505.0 62014.6 3.9%

gram 445.9 833.9 690.1 682.9 741.1 804.0 793.2 10.1%

cereal subst 11.8 4.0 18.2 20.6 40.1 8.5 27.7 15.2%

pulse & prod 9855.2 10498.8 10625.7 15168.0 13397.0 13987.6 13335.3 5.2%

milk & prod 15911.4 20474.0 23443.3 26610.9 24988.2 25892.6 25509.6 8.2%

edible oil 9225.1 9580.4 10247.3 12117.3 12102.3 13671.4 14469.8 7.8%

meat,egg,fish 8048.0 9625.0 10150.3 13710.3 15495.8 13199.4 14530.2 10.3%

vegetables 9538.4 10225.7 13256.9 16309.8 15961.0 17126.6 16785.7 9.9%

fruits(fresh) 4968.2 6470.8 6419.1 9187.7 8680.8 7943.3 8283.1 8.9%

fruits(dry) 696.6 1328.2 985.9 2225.6 1938.4 1948.9 1683.4 15.8%

sugar 5768.9 7216.8 6929.6 7729.5 7890.3 8286.5 7692.9 4.9%

salt 374.2 444.1 511.5 724.5 725.8 679.5 744.4 12.1%

spices 5073.9 5344.3 6076.6 9566.0 8477.0 8508.6 8623.7 9.2%

beverage etc. 17481.6 18390.2 17270.2 27722.3 29033.5 31630.8 30699.2 9.8%

food total 136830 149734 159614 208434 201723 206193 205193 7.0%


Rabo India 18

This shows a CAGR of 9.9 % consumption year on year from a period of 1997 to 2003, if

we adjust for the population growth rate of 1.5% the growth in consumption for

vegetables is estimated at 8.4%. Similarly the growth in fresh fruit consumption during

this period is 8.9%, adjusted for population growth is 7.4% year on year growth in

consumption.

To analyse the consumption pattern and link it to the production surplus or deficit

regions, we have taken a per capita consumption of vegetables per day for Karnataka at

120 gms and per capita consumption of fruits per day at 45 gms. Exhibit 3.D. gives the

production and consumption surpluses in the key districts of the state.

Exhibit 3.D. Production surplus in Fruits and VegetaExhibit 3.D. Production surplus in Fruits and VegetaExhibit 3.D. Production surplus in Fruits and VegetaExhibit 3.D. Production surplus in Fruits and Vegetables in Karnatakables in Karnatakables in Karnatakables in Karnataka

Population

Vegetable

Requirement

(tonnes per

annum)

Present Vegetable

Production (tonnes

per annum)

Vegetables Excess/

Shortfall (tonnes

per annum)

Fruits

Requirement

(tonnes per

annum)

Fruits

Production

(tonnes per

annum)

Fruits Excess/

Shortfall (tonnes

per annum)

Belgaum 4,207,264 184278 459724 275445 76783 162688 85905

Bagalkote 1,652,232 72368 168048 95680 30153 69410 39257

Bijapur 1,808,863 79228 140874 61645 33012 325205 292193

Gulbarga 3,124,858 136869 111818 (25051) 57029 154774 97745

Bidar 1,501,374 65760 79500 13740 27400 36425 9025

Raichur 1,648,212 72192 40578 (31614) 30080 49577 19497

Koppal 1,193,496 52275 87360 35085 21781 104737 82956

Gadag 971,955 42572 126311 83739 17738 28822 11083

Dharwad 1,603,794 70246 113450 43204 29269 67424 38155

Uttara Kannada 1,353,299 59274 11853 (47422) 24698 65977 41280

Haveri 1,437,860 62978 261005 198027 26241 113064 86823

Bellary 2,025,242 88706 127788 39082 36961 120470 83509

Chitradurga 1,510,227 66148 160177 94029 27562 161081 133519

Davanagere 1,789,693 78389 96073 17684 32662 89988 57326

Shimoga 1,639,595 71814 25783 (46032) 29923 131459 101536

Udupi 1,109,494 48596 84462 35866 20248 107316 87068

Chikmagalur 1,139,104 49893 187829 137936 20789 204295 183506

Tumkur 2,579,516 112983 40488 (72495) 47076 184083 137007

Kolar 2,523,406 110525 724927 614401 46052 589638 543585

Bangalore (Urban) 6,523,110 285712 155773 (129940) 119047 149064 30017

Bangalore (Rural) 1,877,416 82231 204707 122477 34263 433044 398781

Mandya 1,761,718 77163 189881 112718 32151 164749 132598

Hassan 1,721,319 75394 625144 549750 31414 144367 112953

Dakshina Kannada 1,896,403 83062 49361 (33701) 34609 148199 113590

Kodagu 545,322 23885 65110 41225 9952 92030 82078

Mysore 2,624,911 114971 66601 (48371) 47905 79377 31472

Chamrajanagar 964,275 42235 89246 47011 17598 61355 43757

52,733,958 2,309,747 4,493,868 2,184,120 962,395 4,038,618 3,076,223


Rabo India 19


Market Linkages in KarnatakaMarket Linkages in KarnatakaMarket Linkages in KarnatakaMarket Linkages in Karnataka

4.1 Introduction4.1 Introduction4.1 Introduction4.1 Introduction

Horticultural crops being perishable in nature, losses in quantity and quality which

affects these products between harvest and consumption. Factors like respiration,

ethylene production, evaporation, temperature and relative humidity affects the keeping

quality of these products. Post harvest facilities from production linking to the market

and consumption points helps in the reduction of losses due to wastage. The existing

market infrastructure in post harvest facilities like cold storage and the avenues for sale

in terms of market and mandi linkages are discussed in detail in the following chapter.

Agri export zones are promoted with the objective of promoting exports of agricultural

produce from selected areas of productivity prominence, food parks provide an

opportunity of increasing processing capabilities in the state, these are two important

linkage points which helps in absorption of Fruits and Vegetables for further value

addition.

4.2. 4.2. 4.2. 4.2. Food Parks Food Parks Food Parks Food Parks

Food Parks were established in the State under the Ministry of Food Processing

Industries guidelines during 2000- 2001. Though there are six Food Parks identified for

establishment in the State, the food Parks are not operational till date. Exhibit 4.A. maps

the food parks and region of sourcing of products for processing. The main commodity

of production in the catchment region of the park is highlighted with a comparison of

the percentage of production of the commodity to the state production.

Exhibit 4.A.Exhibit 4.A.Exhibit 4.A.Exhibit 4.A.


Rabo India 20

Exhibit 4.B. Exhibit 4.B. Exhibit 4.B. Exhibit 4.B. Status of implementation of the Food ParksStatus of implementation of the Food ParksStatus of implementation of the Food ParksStatus of implementation of the Food Parks

Bidar

Raichu

Belgaum

Bijapur

Gulbarg

Bagalk

Bellary

Haveri Davange

Shimoga

Udupi

Chitradurga

Chickmagal

South Kannada

Kolar

Hassan

Mysore

Bangalore Urban

Tumku

Koppal Gada

Dharwad

North Kannada

Mandy

Chamarajnagar

Bangalore Rural

Kodag

Jewargi banana 71836 tn. (6%) Citrus 38987 tn. (12%)

Onion 76337 tn. (12%)

Carrot 7042 tn. (9%)

Sapota 17337 (8%) Jack Fruit 30080 tn. (9%)

Vegetables 459724 tn. (10%)

Hiriyur Onion 111780 (15%)

Banana 93745 tn. (7%)

Malur Mango 383803 (35%) Guava 21180 (14%) Sapota 35066 (16%)

Vegetables 724927 (16%)

Maddur Jackfruit 25780 tn. (11%)

Papaya 24103 tn (10%)

Alternate land is identifiedFinal decision on the location

needs to be taken.

10Food Karnataka

Limited Department of

Industries and

commerce

Chitradurga6

Acquisition proceedings completedUnder Development 100 acre10Food Karnataka


Industries and

commerce

Belgaum 5

Land is in possession of KIADB. Layout Plans

are to be prepared.

60 acres of land has been

acquired.

10Food Karnataka


Industries and

commerce

Maddur4


are to be prepared.

Acquisition proceedings of 105

acres of land has been

completed.

10Food Karnataka

Limited & Department

of Industries and

commerce

Jeewargi3

Off site general infrastructure provided.

Layout Plans are under preparation.

97 under development by

Bharat Biotech Pvt. Ltd..

10Food Karnataka

Limited and

Department of

Industries and

commerce

Malur2

Adhikeshwaralu Group 20 Units have been

allotted 21 acres of land. Works on General

Infrastructure like internal roads, street

lighting, water supply, power supply lines are in

advanced stages of completion.


acquired and the process of

land acquisition is under

process

96Food Karnataka

Limited, Department of

Industries and

commerce

Bagalkote1

RemarksStatusProject

cost (Rs.

in crore )

Implementing agencyLocationSl.No

Alternate land is identifiedFinal decision on the location

needs to be taken.

10Food Karnataka


Industries and

commerce

Chitradurga6

Acquisition proceedings completedUnder Development 100 acre10Food Karnataka


Industries and

commerce

Belgaum 5


are to be prepared.


acquired.

10Food Karnataka


Industries and

commerce

Maddur4


are to be prepared.

Acquisition proceedings of 105

acres of land has been

completed.

10Food Karnataka

Limited & Department

of Industries and

commerce

Jeewargi3

Off site general infrastructure provided.

Layout Plans are under preparation.

97 under development by

Bharat Biotech Pvt. Ltd..

10Food Karnataka

Limited and

Department of

Industries and

commerce

Malur2

Adhikeshwaralu Group 20 Units have been

allotted 21 acres of land. Works on General

Infrastructure like internal roads, street

lighting, water supply, power supply lines are in

advanced stages of completion.


acquired and the process of

land acquisition is under

process

96Food Karnataka

Limited, Department of

Industries and

commerce

Bagalkote1

RemarksStatusProject

cost (Rs.

in crore )

Implementing agencyLocationSl.No


Rabo India 21

4.2.4.2.4.2.4.2.Agri Export ZonesAgri Export ZonesAgri Export ZonesAgri Export Zones

There are Three Agri Exports Zones in Karnataka details are shown in Exhibit 4.C.

Exhibit 4.C. Exhibit 4.C. Exhibit 4.C. Exhibit 4.C. Agri Export ZonesAgri Export ZonesAgri Export ZonesAgri Export Zones

Crop Districts

Gherkins Bangalore Urban, Bangalore Rural, Kolar

Rose Onion Bangalore Urban, Bangalore Rural, Kolar, Tumkur, Hassan,

Davangere, Dharwad, Bagalkote

Flowers Bangalore Urban, Bangalore Rural, Kolar, Kodagu, Tumkur,

Belgaum

4.2.A. 4.2.A. 4.2.A. 4.2.A. Agri Export Zone For Gherkins In KarnatakaAgri Export Zone For Gherkins In KarnatakaAgri Export Zone For Gherkins In KarnatakaAgri Export Zone For Gherkins In Karnataka

This project initially envisaged an investment of Rs.10.95 crores, of which

Rs.7.75 crores was expected from Private Sector & Rs.3.20 crores from Central

Government.

Additional exports worth Rs.35.25 Crores were expected in the next 5 years.

This projection could go up if the duties imposed by the European Union on

Gherkins are brought down.

The primary focus of the project is towards pest and disease management,

productivity enhancement and post harvest handling, apart from emphasis on

marketing the product

Present Status:Present Status:Present Status:Present Status:

MOU signed on 19th September 2001

A research project was sanctioned by APEDA for Pest and Disease Management

and awarded to University of Agricultural Sciences, Bangalore,

Scale of finance for gherkin crop was fixed at Rs. 18000 per acre and accordingly

banks are extending credit to farmers. The number of farmers who are expected

to benefit under the AEZ are 30,000, covering an area of 15,000 acres.

The State Government has also identified roads in the zone for improving their

conditions and priority is being accorded for the same under A.S.I.D.E AND PGSY

scheme (Pradhan Mantri Gram Sadak Yojana Scheme).

Kissan Credit Cards to farmers have been issued on priority.

10 new units have been set up with an investment of Rs.10.62 Crores, thereby

creating an additional capacity of 11000 tonnes per annum.

Almost all the gherkin-processing units are connected with the industrial feeder

lines from rural feeder lines, so that they get quality power supply to their

processing units.


Rabo India 22

The Government of Karnataka announced exemption of market cess for all the

AEZs in the state including the one on gherkins

Since the setting up of the AEZ, exports of gherkins have fetched Rs.577.78

crores (i.e. from October 2001 to April 2005 - three and half years).

A total investment of Rs. 87.34 Crores has been made in the AEZ.

4.2.B. A4.2.B. A4.2.B. A4.2.B. Agri Export Zone For Rose Onion In Karnataka gri Export Zone For Rose Onion In Karnataka gri Export Zone For Rose Onion In Karnataka gri Export Zone For Rose Onion In Karnataka

It was expected that on setting up of this Agri Export Zone there will be an

incremental exports of around Rs. 50 crores in the next five years.

More than 5000 farmers were expected to be benefited and an employment

generation of more than 15 lakhs man days.

Present Status

MOU was signed on 1st of July 2002

6000 small and marginal farmers have been identified for training . One training

programme has been conducted in Dec 2002.

A Research Project on Improvement of Rose Onion for Enhancement of

Productivity & Export Quality has been assigned to IIHR, Bangalore for which the

MOU was signed on 19th May, 03 with the Indian Institute of Horticulture

Research, Bangalore (ICAR); which covers a period of three years.

Suitable quality seeds Agri Found Rose were procured from NHRDF and

distributed to farmers.

Exports of Rs 168 Crores was made from the region since the setting up of the

AEZ on 1st July 2002 (i.e. from 1st July 2002 to 30th June 2005, a period of 4

years).

The number of farmers who are expected to benefit under the AEZ are 5000

farmers, covering an area of 10,000 acres.

There are presently 16 active exporters of Rose Onions. KAPPEC has been

organising seminars in growing areas involving IIHR, UAS(B) and Dept. of

Horticulture.

Exports have reached a level of Rs.168 Crs

The investment in the zone so far has been Rs 0.13 Cr.

4444....2.C.2.C.2.C.2.C. Agri Export Zone For Floriculture In KarnatakaAgri Export Zone For Floriculture In KarnatakaAgri Export Zone For Floriculture In KarnatakaAgri Export Zone For Floriculture In Karnataka

Agri Export Zone for floriculture in Karnataka entails an investment of around

Rs.29.28 crores, out of which Rs. 11.71 crores will come from the Central

Government agencies, Rs.7.37 crores from State Government agencies and the

remaining Rs.10.20 crores will come from the private sector.

There is an anticipated incremental export of around Rs.312 crores in the next

five years.


Rabo India 23

This Zone will benefit around 1000 farmers apart from generating a lot of

indirect employment.

Present Status

Mou Was Signed On 1st Of July 2002

The perishable cargo handling facility has already been set up at Bangalore

Airport to facilitate exports.

A marketing facilitation centre has also been set up at Amsterdam for the benefit

of the growers of the Bangalore and Hosur area. Central Govt. have sanctioned

Rs. 3.57 crores for setting up of a Floriculture Auction Centre at KAIC premises,

Bangalore. The constructions of the Auction Centre will be completed by

October, 2005. It would be ready for commissioning in October/November,

2005.

The investment in the zone is Rs 3.57 Cr for setting up of the Flower Auction

Centre.

The exports of flowers from Bangalore are at present at the level of over Rs

20.00Cr.

Exhibit 4.D.Exhibit 4.D.Exhibit 4.D.Exhibit 4.D.Position of exports from the Agri Export Zones for the AEZ identified cropsPosition of exports from the Agri Export Zones for the AEZ identified cropsPosition of exports from the Agri Export Zones for the AEZ identified cropsPosition of exports from the Agri Export Zones for the AEZ identified crops

Crop Production (Tonnes) Exports

Gherkins

74860 Quantity exported 178106 mts (19th

September 2001 to July 2005)

Value 59368.46 lakhs

Rose Onion

-- Quantity exported 91402.320 mts (1st

2002 to July July 2005)

Value 14071.15 lakhs

Flowers

1.47 lac tonnes of

loose flowers and 1200

crore spikes

Production 42630 tn.

Exports Rs. 35 Crore (2004-05)

4.3. 4.3. 4.3. 4.3. Markets and Rural MandisMarkets and Rural MandisMarkets and Rural MandisMarkets and Rural Mandis

In Karnataka, Agricultural Produce Marketing Committee Yards and Act (APMC) includes

the marketing of horticultural produces. But in practice only few horticultural produces

which are less perishable like Coconut, Arecanut, Onion and Potatoes are mainly

marketed through APMCs and horticultural produces other than these are also

marketed through APMCs which is arround 6% of the total production. Most of the

vegetables and fruits in larger cities and towns are traded in the central market area,

usually municipal market. The wholesale trade of fruits and vegetables is carried out by


Rabo India 24

the commission agents and the trade is through small auction sales or negotiated sales

in terms of baskets/bags etc.,

In the state some special efforts have been made to improve marketing of horticultural

produces, they are:

1. Horticultural produces co-operative marketing society ( HOPCOMS )- It is a co-

operative body engaged in marketing of fruits and vegetables in three districts

namely, Bangalore urban, Bangalore rural and Kolar districts. At present about 100

metric tones of fruits and vegetables are handled per day.

2. At district level 17 District horticultural produce co-operative marketing and

processing societies have been established in the state. The main objective of these

societies is procurement of fruits and vegetables directly from the farmers and sell

to the consumers directly through its outlets situated in the cities and towns at a

reasonable price.

3. At state level as a apex federal body Karnataka State Horticultural Co-operative

Federation (KHF) has been established to perform the activities similar to that of

Karnataka Milk Federation. KHF has drawn market promotional plans for its member

societies. Through NCDC it is planned to support the credit requirement of the

societies.

4. Raithara Santhe- Karnataka State Agricultural Marketing Board, a State

Government organizations initiative towards marketing of fruits and vegetables. The

board had created all the infrastructure for marketing fruits and vegetables directly

from the growers to the consumers without any middlemen or commission agent. At

present this is in action at Yelahanka town near Bangalore city.

5. Fruit market yard near Bangalore- The Department of Agriculture Marketing, a

state government department opened a new market complex near Bangalore City

exclusively for marketing of fruits.

6. Safal fruit and vegetable auction market- This is a new project implemented by

the National Dairy Development Board. This is a vast project developed in an area of

60 acres of land which includes sophisticated auction hall, collection centers,

distribution centers , wholesale and retail sale counters. This project will also

develop cash and carry stores in prime localities of cities. At present about 300

metric tones of fruits and vegetables are handled per day. In selected districts at

village level growers associations have been organized with backward and forward


Rabo India 25

linkages to train the farmers on production and post harvest management of fruits

and vegetables.

Exhibit 4.E. Key APMC LocationsExhibit 4.E. Key APMC LocationsExhibit 4.E. Key APMC LocationsExhibit 4.E. Key APMC Locations

Agricultural Produce Marketing Committee Yards and Act (APMC) includes the marketing

of horticultural produces, presently there are 39 APMC markets in Karnataka

4.4.4.4.4. 4. 4. 4. Processing Units Processing Units Processing Units Processing Units

With a population of over 52 million, Karnataka offers an excellent market for agro food

processing companies. With its 10 agro-climatic zones and nine distinct soil types, it is

an ideal place for growing virtually every kind of horticultural produce. The State

Government has initiated a number of measures to facilitate and sustain investments at

every point in the food chain from producer to consumer. Food Technology Parks having

a hub of 4-6 farms is being planned to channel known how, resource and support

services. Several major international food companies have located their facilities in

Karnataka. These include Nestle, Unilever, Global Green, Danone, Wrigleys, Heinz, Pepsi

and Coca Cola, Nissin, Ovobel, among others.

Bidar

Raichur Belgaum

Bijapur

Gulbarga

Bagalk

Bellary

Haveri Davanger

Shimoga

Udupi

Chitradurga

Chickmagalu

South Kannada

Kolar

Hassan

Mysore

Bangalore Urban

Tumkur

Koppal Gada

Dharwad

North Kannada

Mandya

Chamarajnagar

Bangalore Rural

Kodagu

APMC Markets


Rabo India 26

Exhibit 4.F. Location of processing facilitiesExhibit 4.F. Location of processing facilitiesExhibit 4.F. Location of processing facilitiesExhibit 4.F. Location of processing facilities

4.5.4.5.4.5.4.5.Cold Storage UnitsCold Storage UnitsCold Storage UnitsCold Storage Units

There are over 114 cold storage units in the State with a capacity of 1,43,023 tonnes, of

which 54 of them are dedicated to fish, meat, ice creams and milk products. The rest of

60 units with a capacity 1,34,596 tonne constitute existing cold storage potential for

horticultural crops. The ownership status of these dedicated cold storage units are given

in Exhibit 4.G.

Exhibit 4.G.Exhibit 4.G.Exhibit 4.G.Exhibit 4.G. Cold storage unit Cold storage unit Cold storage unit Cold storage units by ownership class in Karnatakas by ownership class in Karnatakas by ownership class in Karnatakas by ownership class in Karnataka

Category No Capacity

Government 1 456

Public 5 7076

Cooperatives 3 3793

Private 51 123271

Total 60 134596

From among the 60 cold storage units about 85 per cent of the units with a capacity

share of 91 per cent are under private ownership.

Exhibit 4.H.Exhibit 4.H.Exhibit 4.H.Exhibit 4.H. Commodity wise distribution of cold storage units in Karnataka Commodity wise distribution of cold storage units in Karnataka Commodity wise distribution of cold storage units in Karnataka Commodity wise distribution of cold storage units in Karnataka

Commodity No Capacity

Fruits 2 1949

Bidar

RaichuBelgaum

Bijapur

Gulbarg

Bagalk

Bellary

Haveri Davange

Shimoga

Udupi

Chitradurga

Chickmagal

South Kannada

Kolar

Hassan

Mysore

Bangalore Urban

Tumku

Koppal Gada

Dharwad

North Kannada

Mandy

Chamarajnagar

Bangalore Rural

Kodag

No. of Units: 3 Frozen and Dehydrated Vegetables and Fruits

No. of Units: 2 Gherkins and processed vegetables

Gherkins processing No. of Units: 4 Fruit Bars, Gherkins, Tomato

No. of Units: 6 Total Capacity: 2840 Tn. Sauce, Pickles, Mango pulp

No. of Units: 5 Pickles, Jam Fruit pulp & Concentrate

Fruits and Vegetable processing


Rabo India 27

Potato 8 15530

Potato & Tamarind 2 3500

Chillies & Tamarind 5 24918

Multipurpose 43 88699

Total 60 134596

There are only 2 units dedicated for fruits. Potato is the only vegetable that is

extensively stored in cold storage units. Chillies are stored in cold storages more to

retain colour and oleoresins and Tamarind to retain colour. The rest are multipurpose

units where horticulture products can be stored. These storage units are being used for

crops like apples, dates, and oranges, etc., which are not major crops in the State. These

crops are brought into the State through reefer vans from long distances from the place

of production, cleaned, graded, sorted, waxed and stored for future domestic markets in

Bangalore and other south Indian cities. The district wise distribution of existing cold

storage facilities are presented in Exhibit 4.I.

Exhibit 4.I.Exhibit 4.I.Exhibit 4.I.Exhibit 4.I. Existing Col Existing Col Existing Col Existing Cold Storage Facilities d Storage Facilities d Storage Facilities d Storage Facilities

Fruits Potato Potato &

Tamarind

Chillies &

Tamarind Multipurpose

Districts

No Capacity No Capacity No Capacity No Capacity No Capacity

Bangalore 1 22 1 5,000 18 24,248

Kolar 6 8,030 2 3,500 1 3,030

Tumkur 1 2,500

Belgaum 5 6,115

Bijapur 1 1,927 5 7,727

Dharwad 3 5,793

Haveri 4 28,958

Bellary 5 24,918 2 7,700

Dakshin Kannada 1 172

Hassan 1 2,500 2 1,456

Mysore 1 1,000

Total 2 1,949 8 15,530 2 3,500 5 24,918 43 88,699

From Exhibit 4.I. it could be observed that only 11 out of 27 districts in the State have

cold storage facilities. According to the Cold Storage Owners' Association (CSOA), eighty

per cent of the installed cold storage capacity in Karnataka remains unused. The

utilisation rate is around 30-40 per cent and the units are idle for 6-7 months a year.

Private companies, encouraged by the Government claims of giving a thrust to the

sector, had borrowed at high rates of 17 to 19.5 per cent and are now unable to service

their debts.


Rabo India 28

Power is a huge expense, for which the industry has been urging that cold storages be

treated as `agricultural operations' and therefore the charges to be on par with levies on

IP sets. Together with under-utilisation, heavy interest burdens, high capital

investments and low returns, the current problems have cascaded to cripple the

industry. Cold storage units were encouraged as a means to bringing down post-harvest

losses and offer farmers better returns. However, farmers in general, are not aware of

the benefits of cold storages and the Government needs to educate them.

Exhibit 4.J. Location of Cold Storage Units in KarnatakaExhibit 4.J. Location of Cold Storage Units in KarnatakaExhibit 4.J. Location of Cold Storage Units in KarnatakaExhibit 4.J. Location of Cold Storage Units in Karnataka

Bidar

RaichuBelgau

Bijapu

Gulbarg

Bagalk

Bellary

Haveri Davange

Shimog

Udupi

Chitradurga

Chickmagal

South Kannad

Kolar

Hassan

Mysore

Bangalore Urban

Tumku

Koppal Gada

Dharwa

North Kannad

Mandy

Chamarajnagar

Bangalore Rural

Kodag

No. of Units: 6 Total Capacity: 9645 Tn.









Rabo India 29

Exhibit 4.K. Market Linkages of Key CropsExhibit 4.K. Market Linkages of Key CropsExhibit 4.K. Market Linkages of Key CropsExhibit 4.K. Market Linkages of Key Crops

35000HighXXXCashew

20000LowXXXCocoa

40000MediumXXTomato

70000HighXGherkins

25000HighXXOnion

25000MediumXXXChili

35000Medium XXXBanana

60000HighXXGrape

40000HighXXXPineapple

40000HighXXMango

45000HighXXPomegranate

40000 -

75000HighXXXFloriculture

50000HighXXXPepper

30000MediumXXXXGinger

(Rs. / Hectare)

Cold Storages

Processing UnitsMandis*AEZ

Food Parks

Return to Farmer

Export PotentialMarket LinkagesProducts

35000HighXXXCashew

20000LowXXXCocoa

40000MediumXXTomato

70000HighXGherkins

25000HighXXOnion

25000MediumXXXChili

35000Medium XXXBanana

60000HighXXGrape

40000HighXXXPineapple

40000HighXXMango

45000HighXXPomegranate

40000 -

75000HighXXXFloriculture

50000HighXXXPepper

30000MediumXXXXGinger

(Rs. / Hectare)

Cold Storages

Processing UnitsMandis*AEZ

Food Parks

Return to Farmer

Export PotentialMarket LinkagesProducts


Rabo India 30


Selection of Crops for Intervention in KarnatakaSelection of Crops for Intervention in KarnatakaSelection of Crops for Intervention in KarnatakaSelection of Crops for Intervention in Karnataka

Basis for the selection of crops for intervention is given in Exhibit 5.A.

Exhibit 5.A.Exhibit 5.A.Exhibit 5.A.Exhibit 5.A.

Focus Crop Share of All

India

Production

Rationale

Mango 12% Ranked fifth in area and fourth in production

Requirement for high density planting, planting for

export basket

Increase production to cater to the domestic and export

demand

High demand for the pulp in Gulf Markets

Improve productivity through replacement

/rejuvenation

Pomegranate 16% Shown a steady increase in area (two-fold) and increase

in production of five - fold

No 1 in export in the country

High consumption and demand from the local market

Consolidate presence in domestic market - improved

post harvest practices

Grapes 15% Ranked second in production after Maharashtra

High demand in the export market, also strong local

demand for processing varieties

Black table grape is a speciality of the region which

needs to be promoted

Area expansion in select two districts to target the

export market

Banana 10% Ranked third in area, production and productivity in the

country

Effective use of tissue culture in seedling production

Strong domestic demand and demand for processed

products

Thrust on improvement in pre and post harvest

practices


Rabo India 31

Pineapple 7% Congenial condition for production, alternate area

other than hilly region

High demand for processed export category

Successful contract farming models established with

corporates for catering to export market demand

Can be propagated to establish a regional brand name

Ginger 40% High demand for export quality fresh ginger

Can be developed as the production hub for South and

Western India

Caters to domestic demand in South, West and Eastern

markets

Scope of high Tech intervention and production of

organic crop

Pepper 10.5% High demand for dried and processed products in the

export market

Requirement of processing infrastructure and area

expansion introducing high yielding cultivars

Improve agronomic practices (cultural, post harvest

practices)

Cashew - Rejuvenation assistance for the senile plantation

Assistance required for new orchards in the coastal

districts

Highest processing capacity for cashew in the Country

Cocoa 30% Ranks second in production in the country

High domestic demand

Cultivated as intercrop and is highly remunerative with

firm buyback arrangement from corporates

Aromatic - Grow Citronella

Ideal condition for cultivation

Highly remunerative and farmers already engaged in the

crop

Flower 2nd in

Production

High amount of production in the existing regions

High demand for traditional flowers, which is also being

propagated by the Horticulture department

Training in cultivation and post harvest required

Market development activities have already been taken

up to tap the export potential


Rabo India 32

Distribution of the selected crops in different districts for area expansion and post

harvest intervention is shown in Exhibit 5.B

Exhibit 5.BExhibit 5.BExhibit 5.BExhibit 5.B

Sl No Name of District Mango Banana Pomegranate Grapes Pineapple Ginger Pepper Cashew Cocoa Aromatics Flowers Total

1 Bangalore(U)

2 Bangalore (R )

3 Kolar

4 Tumkur

5 Chitradurga

6 Shimoga

7 Davanagere

8 Mysore

9 Chamarajnagar

10 Mandya

11 Kadagu

12 Hassan

13 Chikmagalur

14 DakshinaKannada

15 Udupi

16 Belgaum

17 Dharwad

18 Haveri

19 Gadag

20 Uttara Kannada

21 Bijapur

22 Bagalkot

23 Bellary

24 Raichur

25 Koppal

26 Gulbarga

27 Bidar

The Karnataka Government has sought intervention assistance for 11 crops covering 13

districts in the State.


Rabo India 33


Prioritization of Crop Clusters in KarnatakaPrioritization of Crop Clusters in KarnatakaPrioritization of Crop Clusters in KarnatakaPrioritization of Crop Clusters in Karnataka

Some of the selected crop clusters with in the selected range of crops are identified as

follows

1. Mango Cluster: Mango is an important fruit crop of Karnataka, this crop is cultivated

through out the State and the state has production advantages in standard and

regional varieties which can be taken up in the export basket. The identified regions

for area expansion for thrust in the program are Bangalore Urban and Rural, Kolar

and Tumkur districts, to target production of export quality mangoes. The focus

varieties are Alphanso, Beneshan, Raspuri for table purpose and Totapuri as

processing variety.

2. Pomegranate Cluster: Karnataka has achieved the number one position in exports of

pomegranate from the country. This export quantity comes from a concentrated 100

acres belt in the state. The effort is to replicate this program in other parts of the

state. The identified areas for intervention are Tumkur and Chitradurga and the

varieties selected for cultivation are Bhagwa, Kesar and Ruby Red.

3. Cashew Cluster: Karnataka has the highest processing capacity of cashew nut in the

country. However there is not enough production to meet the demand of the

processing industry. Also the existing plantation is average 40 years old and the

yields have reduced drastically. Entire south Karnataka belt cultivates cashew nut.

For intervention in cashew cultivation districts of Udipi, South Kanada, Uttar Kanada

and Kolar is selected. The varieties to be taken up for cultivation are Ullal series and

Chintamani.

4. Cocoa Cluster: Karnataka is one of the three states in the country where is cocoa is

cultivated. The crop has a high demand from the confectionery manufacturers as

50% of the countries requirement is still met through imports from the African

countries. Presently there is a firm buyback arrangement of the producers with

Cadbury and Campco. The crop is cultivated in the southern and the eastern districts

of the state. The districts selected for intervention are Udipi, south Kanada, Kodagu,

Dakshin Kanada and Shimoga, the varieties are Hybrids between Creollo and

Forrestor.

5. Floriculture Cluster: Karnataka is the number one in floriculture production in the

country. There is a high potential to strengthen the export position in case of cut

flowers. The state has also promoted traditional flowers like jasmine, marigold,

hibiscus, tube roses, where there is a high local demand. The state supplies flowers

to the southern and the western market in India and also to export destinations of

EU and Japan. The districts for intervention are Bangalore Urban & Rural, Shimoga,

Mysore, Kodagu, Udipi and South Kanada.

Details of the clusters and requisite facilities under NHM program is furnished in

Annexure II.


Rabo India 34


NHM Action Plan for 2005NHM Action Plan for 2005NHM Action Plan for 2005NHM Action Plan for 2005----06 for Karnataka06 for Karnataka06 for Karnataka06 for Karnataka

7.1.7.1.7.1.7.1. Production of planting materials Production of planting materials Production of planting materials Production of planting materials

The quality of planting material decides the success of plantations. This will be met out

through model nurseries of both private and public sectors and also through small

nurseries of private and public sector which are well distributed and situated close to

the farming community.

7.1.A. 7.1.A. 7.1.A. 7.1.A. Model Nursery (Public SectorModel Nursery (Public SectorModel Nursery (Public SectorModel Nursery (Public Sector: State Farms: State Farms: State Farms: State Farms))))

Karnataka state department of horticulture is endowed with vast network of farms

through out the length and breadth of state and have been established very long back.

Under the National Horticulture Mission programme 39 farms are selected based on the

requirement and location. When the area expansion is taken up, the facilities available

for production of planting material will become insufficient. The funds allocated will be

used for rejuvenation of water facilities and to equip with modern green house, net

house to meet the extra demand created by the mission activities. Some of them will

have special facilities required for production of medicinal and aromatic plants and

some for floriculture. Out of them 27 will be used as model nurseries for production of

planting material for fruits. 4 of them will be developed exclusively for medicinal,

aromatic plants and 8 no. for floriculture.

7.1.B. 7.1.B. 7.1.B. 7.1.B. Spawn production Spawn production Spawn production Spawn production

The production of spawn required for cultivation of mushrooms will be taken up on

continuous basis at the Departmental spawn production units. The operational cost for

production of 1.0 lakh spawn bottles per year @ a cost of Rs.10/bottle will be met out

under this component. Further 2 spawn production units at Gulbarga and Mysore is

proposed for joint operationilization with Mushroom Growers Associations. One unit in

the public sector for span production has been taken up.

7.1.C. 7.1.C. 7.1.C. 7.1.C. Small nursery (Public Sector) Small nursery (Public Sector) Small nursery (Public Sector) Small nursery (Public Sector)

Department of Horticulture has also established large number of small nurseries in

different agro climatic conditions. Many of them are located in taluk centres which are

also serving as production centres for supply of planting material required by farmer.

About 54 nurseries will be equipped at the cost of Rs. 162 lakhs which will meet the

demand of plants required for area expansion during 2005-06.


Rabo India 35

7.1.D. 7.1.D. 7.1.D. 7.1.D. MoMoMoModel Nursery (Private Sector)del Nursery (Private Sector)del Nursery (Private Sector)del Nursery (Private Sector)

To cater the needs of planting material encouragement will be given to develop model

nurseries under the private sector also. The private sector is gaining importance with

regard to raising of planting material required for area expansion. It is meeting 70% of

the demand. These nurseries will invest heavily on infrastructure and inputs by raising

loans from banks. It is contemplated to provide subsidy to private nurseries also in the

National Horticulture Mission. In this programme totally 10 private nursery assistance is

sought for fruit production. In addition 8 nurseries to produce materials required for

floriculture and 2 for cashew is proposed.

7.1.E. 7.1.E. 7.1.E. 7.1.E. Production of Cashew grafts: Production of Cashew grafts: Production of Cashew grafts: Production of Cashew grafts:

Under this programme it is proposed to produce cashew grafts of high yielding varieties

in Departmental Farms/Nurseries. Provision has been made for creation of infrastructure

such as polyhouse and shade net. An outlay of Rs.20.00 lakhs is earmarked for this

purpose during the first year (2005-06).

7.1.F. 7.1.F. 7.1.F. 7.1.F. Production and supply of planting material of Aromatic plants:Production and supply of planting material of Aromatic plants:Production and supply of planting material of Aromatic plants:Production and supply of planting material of Aromatic plants:

Production of medicinal and aromatic plants is dependent on availability of good

planting material. There is provision for 6 public sector and 6 private sector nursery to

cater to the aromatic plant material demand.

7.2. 7.2. 7.2. 7.2. Strengthening of existing tissue culture laboratories: Strengthening of existing tissue culture laboratories: Strengthening of existing tissue culture laboratories: Strengthening of existing tissue culture laboratories:

There are about 5 tissue culture laboratories under private sector engaged in

micropropagation of horticultural crops on a commercial scale. Many of these

laboratories are not equipped with facilities for disease indexing and identification of

somoclonal variations particularly for banana. Similarly about 10 Research &

Development centres under public sector are engaged in tissue culture related research

in the state. These laboratories need to be upgraded for undertaking research on a

comprehensive manner. Therefore, it is proposed to strengthen tissue culture

laboratories with respect to Research & Development facilities in both private and public

sectors, 2 units in the public sector and 3 in private sector.

7.2.A. 7.2.A. 7.2.A. 7.2.A. Production of tissue culture plants:Production of tissue culture plants:Production of tissue culture plants:Production of tissue culture plants:

Considering the demand for micropropagated plants, it is proposed to produce Tissue

Culture plants at Biotech centre, Hulimavu and Belgaum units of the Department of


Rabo India 36

Horticulture of different horticultural plants. Assistance is sought to produce 1.6 million

plants.

7.2.B. 7.2.B. 7.2.B. 7.2.B. Plant hardening centers:Plant hardening centers:Plant hardening centers:Plant hardening centers: The state has proposed to set up plant hardening

centers, 5 in public sector and 4 in private sector.

7.2.C. 7.2.C. 7.2.C. 7.2.C. Black Pepper Propagation:Black Pepper Propagation:Black Pepper Propagation:Black Pepper Propagation:

Under this program rooted Pepper cuttings of the released varieties specific to different

agro climatic conditions will be produced in departmental farms and nursery as per the

norms of the Macro Mode Scheme for Integrated Development of Spices Crops. The total

financial target is Rs. 48.00 lakhs to establish a total of 16 Small nurseries @ Rs. 3.00

lakh per unit.

7.3. Establishment of New Garden7.3. Establishment of New Garden7.3. Establishment of New Garden7.3. Establishment of New Garden

7.3.A. 7.3.A. 7.3.A. 7.3.A. FruitsFruitsFruitsFruits

Under National Horticulture Mission it is proposed to create concentrated belts of

selected fruits in suitable areas in the state. The agro-climatic suitability, availability of

water, accessibility to market etc., is taken into consideration while formation of such

cluster. This cluster approach will be beneficial in organizing the input supplies,

supervision, procurement of produce, transport, marketing, export etc. Apart from the

traditional packets, potentially favorable area are also explored for the purpose of area

expansion of specific forms.

Exhibit 7.A. Area forExhibit 7.A. Area forExhibit 7.A. Area forExhibit 7.A. Area for Fruits Cultivation Fruits Cultivation Fruits Cultivation Fruits Cultivation


Rabo India 37

7.3.B. 7.3.B. 7.3.B. 7.3.B. SpicesSpicesSpicesSpices

The productivity of spice crops is generally poor due to lack of availability of quality

planting material and adoption of traditional cultivation practices. Keeping this situation

in view, it is proposed to establish New Gardens of Ginger and Black Pepper through

Area Expansion Program, with 1500 hectares each in both crops. Ginger is one of the

major spice crops cultivated in the state. In order to make available sufficient quantities

of the ginger, it is necessary that production of high yielding varieties, like Suprabha,

Suruchi, Varadha etc., of ginger which are suited for different purposes. It is proposed to

encourage pepper cultivation in the arecanut, coconut and coffee gardens. Inputs like

planting material, Trichoderma, biofertilizers, neemcake etc., are proposed to be

provided as assistance for cultivation.

7.3.C. 7.3.C. 7.3.C. 7.3.C. AromaticAromaticAromaticAromatic plants plants plants plants

This programme will be implemented in two of the agro climatic zones of the state on a

cluster approach by involving medicinal and aromatic plant growers association,

industries and other public and private sector organizations. Area expansion of aromatic

crops is proposed for 700 hectares in the first year plan. Aromatic plants will be

Sl No Name of District Mango Banana Pomegranate Grapes Pineapple

1 Bangalore(U) 200

2 Bangalore (R ) 200 250

3 Kolar 200 250

4 Tumkur 200 500

5 Chitradurga 500

6 Shimoga 300 150

7 Davanagere

8 Mysore 300

9 Chamarajnagar 200

10 Mandya 200

11 Kadagu 250

12 Hassan

13 Chikmagalur

14 DakshinaKannada 250

15 Udupi

16 Belgaum

17 Dharwad

18 Haveri

19 Gadag

20 Uttara Kannada 150

21 Bijapur

Documents

Karnataka Horti Produce - Rabo Bank