DeskE d i t o r ' sFrom the

It is a known fact that nearly one-third of global agricultural production never makes it to the consumer, or arrives in a condition beyond consumption. A significant part of this could be remedied by adopting appropriate handling practices throughout a product’s post harvest life i.e., from the field to the consumer. In the Indian context, horticulture is a very competitive business and emphasis on control at various stages of the product movement is necessary – Grading, Packaging, Pre-cooling, Storage and Transportation – so as to ensure product quality at the final destination. Post-harvest management and its marketing, therefore, is not to be treated as a stand-alone activity. It is a ‘community’ activity involving growers, transporters, equipment suppliers, government authorities, markets and other stakeholders.

There is a lot to be done to improve the current levels of post harvest agricultural marketing in the country as it is handicapped with lack of requisite infrastructure, long marketing channels, overriding role of middle men, low levels of farmer’s share in consumer’s rupee, regulatory controls and restrictions. All of this that discourages private sector investment.

Effective and effcient post-harvest marketing involves the development and dissemination of regionally-appropriate PHM technologies and techniques, and the adoption of policies and incentives for investment in post-harvest marketing infrastructure.

Developing New Technologies and TechniquesFirstly, it is important to develop technologies and techniques to reduce post-harvest losses that are appropriate to the needs of local communities. Based on the region state, the needs vary widely, depending on crop type, region, weather, and other such variables. There is no one-size-fits-all solution. An integrated approach, therefore, is needed to address the PHM concerns through improved and technologically superior storage facilities; preservation and processing techniques. There is a greater need for engaging with more partners from the private sector in these efforts and taking bold steps to ensure profitable business across the entire range of stakeholders. There are many examples of new technologies and innovations being developed – to name one such, solar-powered refrigeration systems by Mumbai-based company Icelings – for transporting fruits and vegetables from rural farms to city markets.

Policies and Incentives to Invest in Post-Harvest Infrastructure for Mitigating LossesBut coupled with the right technology solutions, there is need for infusion of incentives, affordable financing options, and necessary government policies to encourage farmers to

Vegetable InItIatIVe for Urban ClUsters

Monthly NewsletterVolume 12 February & March 2014

2 Monthly Newsletter | VIUC | February & March 2014 | Issue-12

Financial Summary

adopt efficient practices. There is a need for incentives for retailers to invest in equipment, facilities and stores so as to ensure the shelf-life of products and broaden market opportunities. And, above all, the policies and regulations should be investor-friendly and profitable. This will give the necessary thrust for greater investment in post-harvest storage and distribution network infrastructures.

In the current context of VIUC, PHM and marketing infrastructure are required by the farmers at three different levels in the entire supply chain. At the field level, PHM infrastructure such as pack houses, processing

units, storage units are required for grading, packaging, and processing etc. At the next level, transport vehicles/refrigerated vans are required for distant intra-state and interstate marketing. At the third level, marketing infrastructure is required for aggregation of produce at FPO level, and infrastructure for retail marketing and direct marketing.

This edition of the newsletter covers various trends in the Post Harvest Management and the Marketing Infrastructure across States in India. Some of the regional and state level interventions are interesting cases to follow.

Under Action Plan 2012-13, approximately 68% of the released funds were utilised across the twenty-three states which included Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Goa, Gujarat, Haryana, Jammu, Srinagar, Jharkhand, Kerala, Madhya Pradesh, Maharashtra, Manipur, Mizoram, Nagaland, Punjab, Rajasthan, Sikkim, Tripura, Tamil Nadu, and Uttarakhand. Andhra Pradesh, Assam, Jammu, Kerala, and Mizoram lead in terms of utilisation, having

utilised over 100% of the total approved funds. In these states, a major portion of the funds were utilized for other special components (like Quality Management Programme for FPOs in Andhra Pradesh, training and demonstration in Kerala and establishment of water harvesting systems in Assam), followed by vegetable cultivation. However, Maharashtra is utilising the same funds under the Action Plan of 2012-13 and 2013-14.

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100.00%80.00%60.00%40.00%20.00%

0.00%Administrative Cost

0.68%HRD Training of Farmers 1.57%

Base Line Survey 0.16%

Markets 3.20%Post Harvest

Management 4.21%Organic Farming 3.81%

Promotion on INM/IPM 0.68%

Promotion of FarmersGroup 7.51%

Seed Production ofVegetables, 0.29%

Vegetable SeedlingProduction 3.05%

Seed Infrastructure0.94%

Vegetable Cultivation

44.99%

ProtectedCultivation,

14.40%

Others, 14.50%

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Promotion of INM/IPM 1.59%

Organic Farming 4.38%

Post Harvest Management1.20%

Markets 1.89%Base Line Survey 0.02%

HRD Training of Farmers 1.29%

Administrative Cost 0.40%

Other 1.87%

Promotion of Farmers Group 1.29%Seed Production of Vegetables 0.26%

Vegetable seedling Production 4.69%

Seed Infrastructure 3.66%

Vegetable Cultivation

64.26%

ProtectedCultivation,

13.21%

Under Action Plan 2013-14, around 18 states have started the utilization viz; Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu, Srinagar, Kerala, Madhya Pradesh, Rajasthan, Sikkim, Tripura, Uttar Pradesh, Uttarakhand and West Bengal.

State-wise utilisation of funds(in percentage) in 2012-13

Statewise utilisation of funds (in percentage) in 2013-14

Component-wise utilisation of funds(in percentage) in 2012-13

Component-wise utilisation of funds(in percentage) in 2013-14

*States have not reported** No activity

-

3Monthly Newsletter | VIUC | February & March 2014 | Issue-12

Northern Region UpdateUpdates from the states of Delhi, Punjab, J&K, Haryana, and Uttarakhand that comprise the Northern Region are as stated below:

DELHIFIG members of Krishak Bharti Seeds have started the successful production of varieties of mushrooms with only small initial capital. Resource persons from the RI have provided comprehensive technical training of mushroom production to farmer members, so that this can be an allied enterprise along with vegetable production enabling them to earn a sizable income. Farmers are using agricultural and other waste as substrate and are producing huge quantities of mushroom. Being a nutrition rich product, urban population and hotel industry have high demand of mushroom in main course of their meals. FPO is trying to develop linkages with some companies for daily supply of mushrooms.

JaMMU & KaSHMIRTraining has been provided to farmers-members on INM/IPM, organic farming, seedling production and FPO administration and management in the different villages of Reasi and Kathua clusters, with the support of Department of Agriculture. Around twenty group leaders of Kathua district have been provided with spray pump- sets, free of cost, during the training. Introduction of seed germination trays is a very new concept in J&K region.

To enhance the knowledge of seedling production in trays, farmer groups of Jammu Oriental Fresh Farmer Producer Company have collectively purchased 1000 seedling trays of 104 cavities with support of NABARD and have distributed four trays to each group members. In addition to this, farmers have also purchased Trichoderma and Grubx powder for borer control. In Kashmir, training has been provided to FIG members on seedling production and benefits of Farmer Producer Companies to farmers.

Under Action Plan 2011-12, 2012-13 and 2013-14, approximately 100%, 100% and 49% of the financial target has been achieved respectively.

PUNJabUnder Vegetable Initiative for Urban Clusters programme, “Two days Human Resource Development Training Programme” was organised at Fatehpur Rajputan village of Sanour Tehsil in Patiala district in which more than 120 farmers have participated. The Programme was headed by Horticulture Development Officer, Patiala, Block Technology Manager ATMA and Senior Project Managers.

In the training program, detailed information was provided to the farmer-members about:

Information on various ��schemes available with the Department of Horticulture under NHM and VIUC.

Recommended package ��of practices for increasing the productivity and quality of vegetables.

Low cost temperature controlled hutfor large scale mushrooms production

Harvested mushroom for packaging

Growth of mushrooms

Training in different villages (Photographs provided by Actech Jammu)

Distribution of seedling trays among group members (Photographs

provided by Actech Jammu)

Distribution of pump-set to group leaders (Photographs provided by

Actech, Jammu)

Training Programme headed by Senior Project Manager cum PAU Expert

Farmers in the training programme

organised by the Department of Horticulture and APMC.

Under Action Plan 2011-12, 2012-13 and 2013-14, approximately 76%, 52% and 20% of the financial target has been achieved, respectively.

Flora Expo 2014 in Gujarat was organised in the last week of January 2014. The RI in Gujarat has been allotted a stall, free of cost with the support of Mission Director, VIUC for the sale and exposition of fresh vegetables by farmers to consumers. During six days of Flora Expo, around 6 lakh people visited the Exhibition as well as vegetable stall of farmers. Large numbers of people purchased vegetables and more than 3.7 MT of around 15 different types of vegetables have been sold during this Expo. Farmers have expressed their pleasure at the positive experience of direct marketing of vegetables through this stall.

Using the direct marketing method, farmers gained 50% to 68% more profit in five days. This is a mutually beneficial method as consumers have also gained a profit of 32% to 59% from direct purchasing through farmers.

Both the farmers and consumers are very pleased with getting fresh vegetables at reasonable prices. Most of the consumers have demanded to be provided with fresh vegetables in their area and they are ready to cooperate by arranging for direct marketing in their area.

4

Protective cultivation of vegetables and fowers.��

INM/IPM/IDM, certifed seed production.��

Method of organic production for producing residue-��free vegetables.

Harvesting, grading, storage and marketing of ��vegetable crops.

Need of joint efforts by the FIG’s and FPO’s for getting ��the maximum benefits from the various schemes.

Future course of action of promotion and sustainability ��of FPOs.

Importance of �� Krishidoot scheme.

By-laws of the FIG and Farmer Producer Company.��

Various scheme of NABARD, farmers' clubs, schemes ��and subsidy facilities of NHB.

Mr. Sukhdev Singh, Secretary FPO and Mr. Manjeet Singh, progressive vegetable growers of the area shared their positive experiences about the cultivation of vegetables and other issues related to VIUC.

Under Action Plan 2011-12 and 2012-13, around 50% and 44% of the financial target has been achieved respectively.

The Western Region comprises the states of Goa, Gujarat, Maharashtra, and Rajasthan. Updates from these states are as below:

Goa

In North and South Goa, cluster meetings have been organised for marketing strategies. Training has been provided to farmers on post-harvest management techniques in collaboration with Directorate of Agriculture. Under ICAR Tribal Sub-plan programmes, water pumps and power sprayers have been distributed to FIG members.

Under Action Plan 2011-12 and 2012-13, approximately 15% and 11% financial target has been achieved, respectively.

GUJaRaT

In Thuleta village of Viramgram Taluka in Ahmedabad district, a Krushi-shibir has been organised for providing training to famers on the latest production technology of onion. FIG members of Ahmedabad have participated and sold vegetables by direct marketing in Flora-Expo

Western Region

Distribution of power sprayers and water pumps under ICAR Tribal

Sub-plan Programme

Training programme

Onion shibir at Viramgram Taluka

Direct marketing of vegetables in FLORA-EXPO

Distribution of pamphlets and large number of customers on vegetable stall

Consumers purchasing vegetables

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

5

Farmers’ name Village Vegetables sold Quantity sold (kg)

Total sale price (`)

Total expense*

(`)

Net returns (`)

Price in Market yard (`)

Solanki Bagabhai Laljibhai

Post Keliya Vasna Taluka Dholna District Ahmedabad

Tomato, Cabbage, Cauliflower, Brinjal, Fenugreek, Bottle gourd, Carrot, Onion green, Palak (Spinach), Fudino (Mint), Radish

1888 24990.00 4650 20,340.00 12,091

Patel Ashokbhai Ramjibhai

Post Chiloda Taluka Dehgam, District Gandhinagar

Capsicum (Green, red & yellow), Khira Kakadi (Cucumber)

1850 44,400 4,700 37,700 26,600

*(Transportation + labour+ packing)

Central Region

The Central Region comprises the states of Chhattisgarh and Madhya Pradesh. Updates from these states are as below:

CHHaTTISGaRH

Kishanmitra Vipnan Sahakari Samiti, abhanpur, Chhattisgarh

Under the VIUC project, Indian Grameen Services (IGS) has worked with 3000 vegetable farmers in three different clusters in which the main blocks are Arang, Abhanpur and Dharsiwa. After vegetable farmer group formation, clusters were designed and two cooperatives have been registered in Raipur district with a coverage of around 204 FIGs and more than 3000 farmers. One of the

Cooperatives is Kishanmitra Vipanana Sahakari Samiti Maryadit, Abhanpur registered under Chhattisgarh Marketing Cooperative Act 1960, Amended Act 2012. The Cooperative is covering around 42 villages and has been formed with the objective of facilitating linkages with input suppliers and extension service providers, strengthening farmer’s capacity through agricultural best practices for enhanced productivity, increase

local value addition of feasible products in competitive clusters, so that farmers can retain more of the surplus and facilitate forward linkages by linking producer groups to marketing opportunities by market. In this regard, Kishanmitra Vipnan Sahakari Samiti achieved the targeted objectives. Farmers of this cluster mainly grow gourds, chili, tomato, brinjal etc in this season. Earlier they were marketing their produce to the local mandi in Raipur and Dhamtari market in which they were facing heavy losses because of the involvement of intermediaries. Commission agents were charging around `40 per qtl of produce and were retaining more than 1-2 kg of produce as sample. This practice was leading to heavy losses for farmers. Observing the heavy losses, farmers recently started collective marketing in Abhanpur market which is at a distance of only 8-10 km the from production cluster. As the farmers are transporting the produce collectively, they are saving around 15-20% of the individual transportation cost. Direct marketing to whole sale traders has saved the total commission charges and is helping to save 25-30% more than the previous marketing system. Training under the VIUC system has encouraged the farmers to carry carrying out direct marketing and they have been benefitted by this system. The Cooperative has opened a retail shop in the center of Abhanpur cluster and has started the business of seeds, fertilisers, pesticides, and other inputs as per the farmers' preference. To support the business, the cooperative has tied up with Akash Traders for purchase of fertilisers and Navin Beej Bhandar for seeds. Till date, the cooperative has done business of more than `3 lakh by selling vegetable seeds, Urea, DAP and Biomanure. Through the input business the cooperative has saved a marginal profit of `11,000 for operating the FPO. In the near future, the cooperative will also use the retail shop as a vegetable collection centre.Stock of fertiliser in input shop for selling

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6

Comprising the states of Bihar, Jharkhand, West Bengal and Odisha, the Eastern Region has reported successful endeavours under the VIUC scheme. Updates from these states are as below:

bIHaR

Around 250 farmers of Nalanda cluster have visited the Kisan Mela at Rajgir where they learnt about various agri-machineries and also participated in Kisan Paathshala for learning about the package of practices and local remedial measures for plant diseases. Similarly, members of Prakash Agro Producer Company Limited

have been taken to the Kissan Mela at Patna where they also exhibited one stall of organically produced vegetables, which has been highly appreciated by the Hon’ble Agriculture Minister of Bihar Sri Narendra Singh. FPO Harnaut Vegetable Farmer Producer Company Ltd. and Ekangarsarai Vegetable Farmer Producer Company Ltd. have received the license for commencing activities at the FPO level. For credit assistance, these FPOs have tied-up with SBI and NABARD.

Under Action Plan 2011-12, 2012-13 and 2013-14, approximately 100%, 94% and 9% of the financial target has been achieved, respectively.

Prakash agro Producer Company Limited, Vaishali

Prakash Agro Producer Company Limited is located at Madhurapur village of Vaishali district. Consisting of more than 1000 farmers and 83 FIGs, the majority of the farmers of this cluster belong to small and marginal category with less than 0.5 ha operational holding size. Commercial crops grown under this cluster are cauliflower, cabbage, tomato, and chilli. The socio-economic condition of these farmers has improved to a great extent because of the implementation of VIUC programme in the cluster. The FPO has also opened its retail shop in Chakausan Bazaar at Mustafapur village of Bidupur block for agribusiness. Implementation of the VIUC scheme, leading to the

Eastern Region

concept of group activity is proving to be highly advantageous among the small farmers. Since the operational holding size was small, therefore farmers were purchasing very small quantity of inputs; merely 25-50 ml of pesticides. Retailers were charging very high arbitrary prices for small quantities; further the farmers were not certain about the quality of the inputs. With the formation of FIG and FPOs, group activity started among the farmers right from production. They started carrying out joint production with joint purchase of inputs, which led to considerable savings in the total cost of production. With the retail shop, they have started the business of selling inputs, and all the farmers

are able to obtain good quality of inputs at moderate prices. Farmers have been highly benefited under the VIUC programme and have availed subsidy on various inputs from the Department of Horticulture. Resource institutions have provided regular training to farmers for administration and management of FPO activities and expanding their business. For facilitating the marketing, farmers have developed linkages with big traders for direct marketing of produce. Earlier As farmers were selling their produce in Bidupur market which is at a distance of around 7-8 km from the farms of the majority of the farmers, but now the farmers have convinced the traders to absorb the produce from Madhurapur and Chakausan village market in Bidupur block. The current market is located at hardly a distance of 1-1.5 km from their farms. Farmers are saving marginal amounts profit on transportation cost. FIG members sell their produce directly to big traders and are marketing the produce without the involvement of any intermediaries. Good quality, A-grade produce is being sold at higher prices in the morning while the sorted out B-grade produce is sold to local people at a marginal profit in the evening.

Stall of Prakash Agro Producer Company Limited, Hon’ble Agriculture Minister of Bihar also visited and appreciated the stall for Organic vegetables

FPO shop in Bidupur block

Demonstration of fertiliser spraying

Input distribution to FIG members

Open field vegetable cultivation

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

7

This activity has led to substantial profits/savings of 20-25% to both the farmers as well as buyers.

The turnover of Prakash Agro Producer Company Limited has reached around ̀ 16, 50,000 for the month of January 2014. The FPO is highly enthusiastic about expanding their business activities on a large scale, but shortage of funds and HR support is obstructing the development. The FPO has also received license for fertiliser business, but lack of funds is posing a problem in establishing a tie-up with manufacturers like Paras Fertilizers and other big manufacturers. In the upcoming season, the FPO has planned for large-scale marketing of potato and food grains. With proper funding and HR support, the FPO is optimistic abot carrying out big business transactions.

oDISHa

In Jajpur and Cuttack, farmer meetings have been organised for review of activities, planning, and problem resolution in which more than 500 farmers have participated. Rani Sukadei FPC Limited, Maa Charchika FPC Limited and Rasulpur Green Vegetable Farmer Producer Company Limited have participated in the state vegetable and flower show organised by the Directorate of Horticulture in Bhubaneswar and have sold their vegetables there.

Under Action Plan 2011-12, 10% of the financial target has been achieved.

Vegetable marketing at Flower Show

Comprising the States of Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim and Tripura. Updates from these States are as stated below:

aSSaM

Commercial vegetable production- a boon to small & marginal farmers for sustainable livelihoods

The poverty level in Bordia village of Raja Mayong ADO circle was pathetic. Recurring foods wiped away smiles from the faces of the farmers. Small land holders comprise nearly 60% of the population. The productivity and profitability (main crop paddy) was very poor and no other livelihood opportunity was available. Many of the farmers wanted to improve their livelihood status, but lack of economic (cash) resources and exposure were the major hurdles. Then the farmers approached the local ADO who informed them about “Vegetable Initiatives for Urban Cluster (VIUC)” during the year 2012-13, for commercial vegetable production as cash crop for economic empowerment and diversification of livelihood. Most of the farmers opined that vegetable are a highly risky crop for small land holders like them and offered resistance to the adoption of the technology in spite of the availability of good land and irrigation facilities.

Shri Padmeswar Nath and Shri Jaguram Nath of Mayong Bordia village under ADO circle Raja Mayong (Morigaon district) reposed faith in the project and the ADO who led 20 farmer beneficiaries at the initial period. These farmers became the beneficiary farmers as President and Secretary of Mayong Bordia Vegetable Growers Committee FIG

North east Region

under VIUC project in the year 2010-13. Their total land holding was 20 ha with rice as a chance crop was followed by mustard cropping, which was being done in the old traditional way since 20 years. Now they prepared themselves to initiate a new endeavour under the guardianship of ADO Raja Mayong to cultivate different vegetables during the food free months under the new scheme VIUC. They first formed a corpus fund to meet initial expenditures of cultivation and prepared a crop plan discussing with their ADO and bought quality inputs for starting the work. They cultivated pumpkin, tomato, brinjal, carrot, cole crops etc. in the organic way, and sold at the Guwahati market. For this, they bought a three wheeler under the VIUC scheme at 50% subsidy as marketing support and created a permanent organic vegetable bazaar at the Directorate of Agriculture Office campus at Khanapara, Guwahati. the Hon’ble Agriculture Minister Sri. Nilomoni Sen Deka also visited the site and expressed satisfaction on the progress of the VIUC scheme. The crop, area, production, and productivity of vegetables was as follows:

Signboard of vegetable cultivation under VIUC

Visit by Hon’ble Agriculture Minister Sri. Nilomoni Sen Deka

Sl. No.

Name of crop

area (ha)

Production (Quintal)

Productivity (Quintal/ha)

1 Pumpkin 2.00 162.00 81.002 Tamato 3.00 822.00 411.003 Brinjal 3.00 702.00 234.004 Cabbage 3.00 783.00 261.005 Cauliflower 2.00 257.00 128.006 Carrot 2.00 524.00 262.00

7 Pea 2.00 286.00 143.00

8 French bean 2.00 228.00 114.00

9 Broccoli 1.00 120.00 120.00

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

8

This endeavor brought good luck to the FIG. Moreover, they earned an extra income by selling the produce in Guwahati market. These initiatives became permanent and they are now regularly producing organic vegetables. Now, they have started of-season or early vegetable production to meet the high demand of vegetables as well as price. With the success story of Mayong Bordia Vegetable Growers Committee, almost 90% farmers in the village are now growing commercial vegetables on variable land holdings. Farmers from other area are frequently visiting and contacting them for technical guidance .

NaGaLaND

Field inspection has been conducted in Kohima for the progress of activities in different VIUC clusters. In Jotsoma and Kidima cluster, cultivation of tomato and capsicum under green house structure are showing promising results. Adoption of protected cultivation has helped the boosting in income of farmers, even during the of-season. Farmer members are highly pleased with the scheme; especially the of-season production in

Hi-Tech green house is helping the farmers in earning more income. Kohima FPO has participated in exhibition cum sales day during the Hornbill Festival of 2013.

Under Action Plan 2011-12 and 2012-13, approximately 100% and 79% of the financial target has been achieved.

SIKKIM

Sri Shyam Chettri, is a young farmer from a small village called Basnet Gaon under East Sikkim district. He is a marginal farmer having only 2.5 acres of land. Shri Shyam Chettri was earlier a cereal crop cultivator but realising the benefits of vegetable production from small land area, he became a full-time vegetable grower.

For the past one year he has been cultivating horticultural crops particularly cole crops (cabbage, cauliflower, and broccoli) throughout the year and has realised a vast difference in income as compared to cereal crops which was practised by his family in the early days. Keeping in view the young man’s interest, the Department of Horticulture and Cash Crop Development, has supported him with all the facilities like capacity- building, technical know-how, other cultural practices related to vegetable crops under “VIUC”, as well as good quality inputs. At present he serves as a burning example in the village of an adaptor and has become an ideal amongst the villagers. He is motivating the farmers around him to grow vegetables depending upon the market conditions (especially monsoon season) and grow high-value crops with long post-harvest life. With his small holding, he could cater to most of the demands of the local markets and fetch a good return. Seeing him, the other farmers have also the imbibed the technology and earning a good liveli-hood. It has been noticed that most of his produce reaches the nearby market, Pakyong. He even supplies the Institutions around the area and this is how vegetable cultivation has become a regular source of income for the farmers’ community at Namcheypong, Basnet Gaon. Mr. Shyam Chettri is identified as one of the resource persons to conduct training for the farmers about his experience during capacity-building programme, which was the most effective way of disseminating knowledge at the farmers’ level.

Comparative statement of total income of cereal crops vis-à-vis horticulture crops grown by Shyam Chettri

Open field vegetable cultivation in Kohima

Hi-tech cultivation of tomato

Shri Syam Chhetri discussing about the crop

Broccoli field

Field officers interacting with beneficiary

Particulars Year area Estimated Cost (`)

Estimated Income (`)

Income (`)

Cereals crop

Till 2011 2.5 Acre 6700.00 30000.00 23300.00

Vegetable crops

2012-2013 2.5 Acre 11000.00 130000.00 119000.00

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

9

Comprising the four southern states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu, updates from these the Southern region are as below:

aNDHRa PRaDESH

Department of Horticulture, Government of Andhra Pradesh has organised 24th National Horticulture Expo as HORTI-EXPO 2014. Various horticultural products

like fruits, vegetables, flowers and other agri products have been displayed from the different parts of Andhra Pradesh. Stalls of horticulture and allied sectors like

Southern Regionfarm mechanisation, post-harvest technology, organic farming, integrated water management methods, quality improvement aspects, good agriculture practices, horticulture nurseries, ornamental plants, vegetables, and fruits marketing were exhibited. In addition to this, seminars were also organised for creating more awareness among farmers.

Under Action Plan 2011-2012, 2012-13 and 2013-14, approximately 100%, 100% and 43% of the financial target has been achieved respectively.

TaMIL NaDUFor facilitating marketing, market aggregators have been identified for the construction of collection centres, retail outlets, and mobile outlets etc., in different clusters of Tamil Nadu. Farmers are very pleased with the support given by the Department for subsidy on various inputs and marketing infrastructure created by the Department. Under Action Plan 2011-12 and 2012-13, approximately 40% and 32% of the financial target has been achieved respectively.

Glimpses of HORTI-EXPO 2014 organised by Department of Horticulture, Andhra Pradesh

Retail outlet at Erode in Coimbatore urban cluster

Trends in Post Harvest Management and Marketing Infrastructure Under Supply Chain

Ensuring and encouraging the establishment of an efficient supply chain is one of the major objectives of the Vegetable Initiative for Urban Clusters (VIUC) Programme. Post-Harvest Management (PHM) and marketing are the vital components of this chain. Quality vegetables reaching the consumer hinges upon both pre-harvest factors as well as proper post-harvest management practices throughout the chain, from the field to the consumer. Each stakeholder along the post-harvest chain, involved in harvesting, handling and marketing of fresh produce plays a significant role in ensuring the safety and delivery of quality fresh produce. Maintaining vegetable quality requires good logistics management systems and communication network throughout the supply chain. It is an intricate chain of interdependent activities. The

traditional vegetable supply chain involves a number of intermediaries which has a marked increase in the overall transaction cost. Only 30-35% of the end price goes to the growers while the rest is distributed amongst the different intermediaries. Since the supply chain is long and scattered, wastage of produce is around 10-12% of the total quantity, thereby increasing the cost burden of the end consumers.

For improving the whole supply chain, components of post harvest management and marketing has been introduced and these comprise substantial amounts of the funds allocated under the VIUC scheme. Broadly Post-harvest infrastructure could be divided bucketed out into three categories of Field Level PHM infrastructure (pack-houses, collection centres, etc.); Transportation Vehicles/mobile units and lastly, Market Infrastructure (warehouses, godowns, silos, rural markets, etc).

Feature article

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

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Post-harvest infrastructure is a critical component of the agri-chain and the deployment of collection centres, pack houses, and other such facilities in the vicinity of farms is important for farmers to enable them to aggregate, store, assess, and augment the value of their produce. Under Action Plans 2011-12 and 2012-13, approximately 16% of the total funds have been allocated for establishment of post-harvest management and marketing infrastructure at the national level, which has a monetary value of approximately `93 Crore. The percentage fund allocation has varied from 3% to 39% at the state level. The PHM component includes construction of pack houses, pre-cooling units, mobile pre-cooling units, cold storage units, refrigerated vans, primary/mobile/mini processing units, evaporative/low energy cool chamber, preservation units, low cost onion storage, Pusa Zero Energy Cool Chambers and some other components, like distribution of plastic crates. Marketing infrastructure consists of the construction of retail/ rural markets, collection centres and retail selling through motorised and static vending carts.

Under Action Plan 2011-12, approximately 55% of the allocated funds have been utilised with 27% physical achievement, whereas under Action Plan 2012-13, around 24% financial and 9% physical achievement has been made so far. If we observe the fund utilisation status in 2011-12, Andhra Pradesh, Arunachal Pradesh, Assam, Chhattisgarh, Jharkhand, Manipur, Nagaland, Rajasthan and Uttarakhand have utilised over 100% of the funds allocated under PHM and marketing infrastructure, with more than 100% physical achievement. But there are some states like Goa, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Tamil Nadu and West Bengal, which are showing very low performance under PHM, and some states have not touched the component. Under Action Plan 2012-13, around 20 states allocated funds under the components of PHM and marketing in their action plan, of which only three states viz; Assam, Jammu and Kerala have achieved 100% of the physical and financial targets. An efficient supply chain plays an integral role in keeping business costs minimum and profitability as high as possible.

PHM and marketing infrastructure are required by the farmers at three different levels in the entire supply chain. At the field level, PHM infrastructure like pack houses, processing units, storage units are required for grading, packaging, and processing etc. At the next level, transport vehicles are required for distant intrastate and interstate marketing. At the third level, marketing infrastructure is required for aggregation of produce at the FPO level, and infrastructure for retail marketing and direct marketing.

In the Northern parts of the country, approximately `11.7 Crore had been targeted to be spent for development of PHM and marketing infrastructure, against which approximately 25% of the allocated funds have been utilised. In Haryana, vending carts have been provided to FPO members for direct marketing of vegetables but the capacity is quite less for large volumes of vegetables. Though FPO members are carrying out direct marketing with some organised retailers but, for receiving remunerative prices in competitive market, such infrastructures are mandatory. Therefore, around 19 PHM centres and some collection centres are being opened with the support of Department of Horticulture for FPO members. Construction of these infrastructures in this area will serve as major distribution hub for organised retailers and institutional buyers in NCR. In Jammu and Kashmir region, low cost onion storage and pack house have been constructed. For facilitating the direct marketing by farmers, static and motorised vending carts have been provided to FPO members. For direct marketing of large volume of vegetables, FPOs are trying to establish tie ups with the Border Security Force (BSF) and other institutional buyers at prefixed prices along with the facility of transportation vehicle from buyers, but the lack of a collection centre is posing a problem in marketing large volumes of vegetables for the FPO. In Punjab, farmers have been benefited with the construction of pack houses as it is helping in obtaining higher prices for graded produce. In Uttarakhand, for sorting and grading of produce, pack houses have been constructed along with preservation units for value addition at small-scale level, from which FPO members are carrying out good seasonal business

Pack house in Punjab

Motorised vending van in Jammu

Mini processing unit in Uttarakhand

Collection centre cum pack house in Manipur

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

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of preparing and selling processed fruits and vegetable products. FPO members have been provided with motorised vending carts for direct marketing of produce. To expand the business further, construction of more PHM infrastructures has been announced for FPOs in the Dehradun cluster.

In the North Eastern states of country, approximately `5.6 Crore has been targeted to be spent for development of PHM and marketing infrastructure, of which 67% of the financial target has been achieved. In Assam, Pusa Zero Energy Cool Chamber, pack houses and refrigerated vans have been provided to FPO members for sorting, grading and transportation of produce in temperature-controlled vehicles. Similarly in Arunachal Pradesh, Pusa Zero Energy Cool Chambers and collection centres have been constructed, but for long distance transportation of produce, heavy and light-weight vehicles, plastic crates, cartons are required. Rural marketing centre and more collection centres are required for local marketing so as to reduce the intermediaries. In Manipur, a pack house-cum-collection centre has been constructed which serves the dual purpose of grading as well and aggregating the produce. Depending upon the requirement, farmers in Nagaland have been provided with plastic crates for long distance packaging of vegetables. In addition to this, rural markets and collection centres have been constructed. In Sikkim, a collection centre has been constructed for group marketing of large quantity of produce which has benefited the farmers to a large extent.

In the Eastern part of the country, approximately `19 Crore had been allocated; of which 53% of funds have been utilised. Bihar has mainly emphasised on development of PHM infrastructure like pack house low cost onion storage, mobile pre-cooling units, and Pusa Zero Energy Cool Chambers. In Jharkhand, emphasis has been given on both the PHM and marketing infrastructure but the farmers are not able to avail of the established infrastructure. In Odisha also, both

PHM and marketing infrastructure has been developed from which farmers are being highly benefited. Computerised ID cards have been made for famers and the collection centre has been linked with the bank accounts of the farmers. Aggregation centres display their prices in the local language for easy understanding for the farmers. Payment for the quantity of vegetables sold is transferred digitally and farmers are paid online. In addition to this, retail outlets have been opened and vending carts have been provided for direct retail marketing. This system is reducing the impact of local traders as farmer groups are now in a position to negotiate their price. Distress selling of the produce has slowly decreased but availability of only one aggregator has created a monopolistic condition which is affecting the profit of the farmers. More aggregators should be introduced for creating a competitive market so that farmers can achieve maximum profits. The state Nodal agency in West Bengal has facilitated the farmers by establishing pack houses for sorting and grading of produce; for direct retailing vending carts have been provided to farmers and there are plan to develop the other marketing infrastructure.

In the Western region, approximately `25 Crore has been spent, of which only 30% of the funds have been utilised. In Goa, farmer members are using marketing infrastructure developed by Goa State Horticulture Corporation Ltd. (GSHCL) in which they are obtaining pre fixed prices for select farm produce. For other vegetables, farmers are compelled to stand on the roadside, or go directly to mandis for selling. Even after the allocation of funds, no effort has been made till date in this context. In Gujarat, some pack houses have been constructed, whereas farmers in Rajasthan have been provided with pack house, low cost onion storage structure, and static vending carts for retail selling. But in both the states, the farmers are in intense need of

Pusa Zero Energy Cool Chamber in Arunachal Pradesh

Collection centre in Sikkim

Refrigerated vans in Odisha

Digital transfer of the produce sold by farmers

Sorting and grading of produce in West Bengal

Procurement centre of GSHCL

Collection centre in Maharashtra

Monthly Newsletter | VIUC | February & March 2014 | Issue-12

12 Monthly Newsletter | VIUC | February - March 2013 | Issue-04Monthly Newsletter | VIUC | December 2013 | Issue-10

SMaLL FaRMERS’ aGRIbUSINESS CoNSoRTIUM(Society sponsored by Dept. of Agriculture & Cooperation, Govt. of India)NCUI Auditorium Building, 5th Floor, August Kranti Marg Hauz Khas, New Delhi - 110016Tel: +91-11-26862365, 26966017, 26966037 | Fax: +91-11- 26862367 Email: sfac@nic.in | Web: www.sfacindia.com

aggregation centers and retail outlets for direct marketing of large quantities of produce. Farmers of Chaksu cluster are using a makeshift collection centre for business with big traders. Farmers in Maharashtra have developed a very efficient supply chain and eliminated the impact of intermediaries to a large extent. Construction of collection centres, pack houses and other PHM units near the farm has helped in post-harvest processing and packaging of produce as per the consumers requirement. These infrastructures have improved the value chain for direct marketing to residential societies as well retail outlets. In addition to this, static and motorised vending carts have facilitated the direct retail marketing by farmers and boosted up their confidence for coming forward in the market.

In the Central part of the country, approximately `11 Crore has been allocated under PHM and marketing infrastructure development, for which around 55% of the funds have been utilized. In Chhattisgarh, various PHM and marketing infrastructure have been shown to have developed as pack houses, pre-cooling units/mobile pre-cooling units, refrigerated vans, rural market retails outlets and vending carts, but the FPO members have shown the availability of some AC coolers and vending carts only. In Madhya Pradesh, various units like pack houses, low cost onion storage and aggregation centres have been developed. This is proving beneficial to farmers as it is helping in adding value to the produce; the state level aggregator is supporting in post-harvest processing and marketing of bulk quantity of produce at pre fixed-prices which has reduced the various intermediaries in the value chain.

In the Southern part of the country, approximately `21 Crore has been allocated, of which 32% of the funds have been utilised. In Andhra Pradesh, PHM units like pack houses, pre cooling units, storage and collection centres have been established. The Department of Agricultural (marketing) is purchasing the vegetables of farmers from the collection centres by paying them the market price and is selling the vegetables in Rythu bazaars by setting up special stalls. In addition to this, motorised vending carts have been provided to the FPO with plastic crates for retail marketing in the city. Farmers have been highly benefited by the construction of pack houses and distribution of plastic crates in Karnataka. Sorting and grading of good quality and average quality produce is helping in gaining maximum prices of the produce with least post-harvest loss. In Kerala, the FPOs VFPCK and SFPCK are providing all the PHM and marketing facilities to FPO members, eliminating the role of intermediaries completely. In Tamil Nadu, the state nodal agency has opened a collection centre in which farmers are directly selling their produce to different aggregators. Under PHM components, refrigerated vans will also be provided to farmers members for long distance transportation of vegetables. For direct marketing of vegetables, the FPO has opened its own retail outlet and is planning to tie up with institutional buyers for regular supply of vegetables from the FPO. The present scenario is showing an improved supply chain up to some extent, but there is need for development of more effcient transportation and local marketing facilities, especially in the North Eastern region, to make the scheme more realistic for small and marginal farmers.

Low cost onion storage structure in Rajasthan

AC cooler in Chhattisgarh

Vending carts distributed to farmers in Chhattisgarh

Sorting and grading of produce

Aggregator in Madhya Pradesh

A-grade produce for selling in Karnataka

Pack house cum cold storage in Andhra Pradesh

Retail outlet in Tamil Nadu