Value Chain Analysis Maize - Rajasthan · 2019-12-14 · A SWOT analysis of the gram’s value chain highlights that Rajasthan is the largest producer of white maize in the country

Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT

Value Chain Analysis

Maize

Prepared by:

AGRI BUSINESS PROMOTION FACILITY

Value Chain Analysis – Maize i

i Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Contents

Page

List of Tables iii

List of Figures iv

Executive Summary 1

Chapter 1: Introduction 5

1.1. Global Scenario 6

1.2. Indian Scenario 9

1.3. State Scenario 11

1.4. District and Cluster Scenario 11

1.5. Approach to Value Chain Analysis 13

1.6. Resourcing mapping of value chain 14

1.7. Marketable surplus of Maize in Cluster 14

Chapter 2: Pre Harvest Management 15

2.1. Major Commercial Varieties of Maize Grown In Cluster 15

2.2. New Initiatives and Practices 15

2.3. Seasonal Pattern of Maize in Rajasthan visa-vis other parts of the world 16

2.4. Land Preparation 16

2.5. Sowing, Planting and Cultivation 18

2.6. Climatic and Soil Requirement 20

2.7. Nutrients Management 21

2.8. Water Management 22

2.9. Weed Management 23

2.10. Pests & Diseases Management 24

2.11. Recommended Good Agricultural Practices 29

2.12. Harvesting 30

2.13. Pre harvest constraints of Farmers 30

Chapter 3: Post Harvest Management 31

3.1. Post-Harvest Losses, Harvesting Care and Post-Harvest Equipment 31

3.2. Grade Specification & Grading at Producer Level 34

3.3. Major Storage Diseases and Pest and their Control Measure 36

Chapter 4: Cost Of Production and Net value Accruals to Producers 41

Value Chain Analysis – Maize ii

ii Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune

Chapter 5: Supply Chain of Commodity 43

5.1. Seasonal Availability and Price Pattern 43

5.1.1. Seasonal Availability 43

5.1.2. Market Arrivals & Prices in Major Markets of Rajasthan 44

5.2. Existing Marketing Channels 48

5.3. Alternative Systems of Marketing 53

5.3.1. Direct Marketing 53

5.3.2. Contract Farming 53

Chapter 6: Processing Infrastructure Availability and Utilization 55

6.1. Processing 55

6.2. Stakeholders Share in Consumer Rupee 61

6.3. Price build up & Marketing Efficiency Analysis 62

6.4. Consumer preference Analysis 62

Chapter 7: Existing Institutional Support and Infrastructure Facility 64

7.1. Support at Cultivation Stage 64

7.2. Support at Post Harvest, primary processing and secondary Stage 70

Chapter 8: Gap & Constraint Analysis 73

8.1. Constraints as Perceived by Producers and Other Stakeholders 73

8.2. SWOT analysis of the indicative Value Chain of Maize 74

8.3. Key constraints in Maize crop 75

8.4. PIESTEC Framework 77

Chapter 9: Proposed Interventions & Investments 79

9.1. Intervention areas for value chain strengthening 79

9.2. Indicative Post intervention Value chain Map of Maize 84

9.3. Outcomes of value chain study 88

9.4. Conclusion 89

References 91

Annexure 1: Stakeholders Consulted over the Study 93

Annexure 2: List of Central Warehousing Corporation (CWCs) warehouses in Rajasthan 95

Annexure 3: List of State Warehousing Corporation (SWCs) warehouses in Rajasthan 97

Annexure 4: Product wise GST rates of Food Products 100

Annexure 5: PIESTEC Analysis of Maize 104

Value Chain Analysis – Maize iii

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List of Tables

Table 1: Nutritional Value of Maize .......................................................................................................................................... 6 Table 2: Area Production and Productivity of Maize for 2013-2014 ................................................................................ 10 Table 3: Export data of Maize ................................................................................................................................................. 11 Table 4: District production report of Maize in Rajasthan ................................................................................................. 12 Table 5: Maize production in catchment area of Rajasthan ................................................................................................ 12 Table 6: Surveyed Major stakeholders for the Value chain Analysis of Maize................................................................. 13 Table 8: Resource mapping of value chain ............................................................................................................................ 14 Table 9: Marketable surplus of Maize in cluster .................................................................................................................... 14 Table 7: Maize variety production in Rajasthan .................................................................................................................... 15 Table 8: Seed Treatment of Maize ........................................................................................................................................... 18 Table 9: Seed rate and plant geometry of Maize ................................................................................................................... 19 Table 10: Guidelines for choosing row width ....................................................................................................................... 20 Table 11: Climatic Conditions for Maize ............................................................................................................................... 20 Table 12: Nutrient Management for Maize............................................................................................................................ 22 Table 13: Loss of maize post-harvest ..................................................................................................................................... 31 Table 14: Maturity period for harvesting of maize ............................................................................................................... 32 Table 15: Properties of Jute and HPDE bags ....................................................................................................................... 34 Table 16: Tolerance limits under grading ............................................................................................................................... 35 Table 17: Grading at producers level, state wise quantity graded and estimated value during 2014-2015 .................. 36 Table 18: Cost of Production ................................................................................................................................................... 41 Table 19: Seasonal indices of monthly arrivals and prices of maize in Nimbahera market of Rajasthan (2002 to 2013) ............................................................................................................................................................................................. 43 Table 20: Major assembling markets for Maize in important producing states ............................................................... 45 Table 21: Arrivals in Rajasthan (Maize) from 01-Apr-2016 to 24-Mar-2017 ................................................................... 46 Table 22: Indian distribution and dispatch of Maize ............................................................................................................ 48 Table 23: Benefits of contract farming ................................................................................................................................... 53 Table 24: Price spread table ...................................................................................................................................................... 62 Table 25: Short Term and Long Term loans ......................................................................................................................... 64 Table 26: Tax Structure ............................................................................................................................................................. 78 Table 27: Intervention Plan of Value Chain of Maize along with stakeholders’ matrix ................................................. 79 18) Table 1728: Nutrient Management for Maize: Maize Production Technologies in India ....................................... 92 19) Table 29: Grading at producers level, state wise quantity graded and estimated value during 2014-2015: D.M.I., Faridabad (Agmark grading Statistics 2014-2015) ................................................................................................................ 92 20) Table 30: Major assembling markets for Maize in important producing states : Post Harvest Profile Of Maize92 21) Table 31: Arrivals in Rajasthan (Maize) from 01-Apr-2016 To 24-Mar-2017: Market Arrivals; ............................ 92 22) Table 32: Cost Components of Maize Sub Offices of Directorate of Marketing and Inspection. The charges prevalent at the time of survey are indicated in the table .................................................................................................... 92

Value Chain Analysis – Maize iv


List of Figures

Figure 1: Maize crop .................................................................................................................................................................... 5 Figure 2: Global Maize Production ........................................................................................................................................... 7 Figure 3: Major Maize Producing Countries ............................................................................................................................ 8 Figure 4: Global Exports of Maize ............................................................................................................................................ 8 Figure 5: Global Imports of Maize............................................................................................................................................ 9 Figure 6: Seasonal Availability of Maize ................................................................................................................................. 16 Figure 7: Water Management of Maize .................................................................................................................................. 22 Figure 8: Special Indices of Maize ........................................................................................................................................... 44 Figure 9: Existing pre intervention Value Chain map of Maize ......................................................................................... 50 Figure 10: Total Marketing Management .............................................................................................................................. 52 Figure 11: Proposed post intervention map of value chain map of Maize ....................................................................... 85 Figure 12: FPC Development Approach ............................................................................................................................... 86

Value Chain Analysis – Maize 1


Executive Summary

Maize is the “queen of cereals” and is also referred as corn. It is considered as one of the most important

cereal crops of the world. Yellow maize is traditionally used for animal feed while white maize is used as a

food crop. The crop is believed to have originated from Central America and Mexico. At present, USA is the

global leader in the production of corn.

The major exporters of maize are USA, Brazil, Argentina, Ukraine, Russia and EU whereas Japan and Mexico

are the leading importers. The growth in the livestock industry is fuelling the demand of maize and

subsequent growth in production of the crop.

In India, Madhya Pradesh, Andhra Pradesh, Karnataka, Rajasthan etc. are the leading maize growing states.

The FAO pegs a global production of 1020.30 million tons from 179 million hectare maize cultivation area

which translates to yield of 5.7 metric tonnes per hectare.

The poultry industry in India alone consumes 47% of the country’s total maize output. The livestock

(excluding poultry) sector accounts for around 13%, 12% goes to the starch millers and 8% is used by the

food industry. The import of maize attracts an import duty of 50% which is periodically revised by the

government to meet the domestic shortages.

The major maize producing districts in the State of Rajasthan are Bhilwara, Chittorgarh, Udaipur, Banswara

and Bundi. The important maize producing clusters under RACP are Manoharthana, Gudha, Orai Bassi,

Kushalgarh and Jakham.

The major varieties of maize grown in the State are P3522, P1864, CoH(M)9 etc. Among the maize based

cropping systems, maize-wheat, maize-mustard, cotton-maize etc. are popular.

A range of support institutions exist in the region. These include a range of farmer’s level advisory service and

service providers including Society for maize research and development and Indian institute of maize research

which supports the farmers regarding the information dissemination of market intelligence and agricultural

extension services. Some important support institutions for Maize in Rajasthan are Department of

Agriculture, Govt. of Rajasthan who provides extensive support through their team of State/District/ Tehsil

and Panchayat level officials on; recommended package and practices for the crop, mini kits for crop

demonstration and subsidy support on certified seed distribution to farmers.

The support institutions for the pre/post-harvest consultation on the maize crop are Department of

Agriculture are the Rajasthan State Seed and Organic Production Certification Agency, The Rajasthan State

Seeds Corporation Ltd, the State Institute of Agriculture Management, Rajasthan State Warehousing

Corporation, Department of Agriculture Marketing and Rajasthan State Agriculture Marketing Board who



contribute to the productivity, storage and market linkage of the crop. Apart from this, there are various

Krishi Vigyan Kendras attached through State Agriculture Universities/ ICAR also contribute in terms of

seed production, technology demonstration and post-harvest management of the crop. RARI, Durgapura has

also played a significant role in production of improved varieties of Maize contributing to both production

and productivity in the State.

The grading and sorting is important for the farmers to improve the quality of produce for better price

realisation. The maize is cleaned with sieves to remove the dust, broken grains and small-size shrivelled grains

etc. The multiple organisations like Rajasthan Agriculture Research Institute, Farmer’s level Advisory, Kisan

Call Centres, KVKs, offer range of services to the producers. The maize is harvested in the state during the

month of September and October. The price of the crop is also influenced by the global poultry feed and

ethanol producer’s demand. A range of value added products are produced from maize which are corn starch,

corn cooking oil, corn syrup, etc.

A SWOT analysis of the gram’s value chain highlights that Rajasthan is the largest producer of white maize in

the country. The quality of state’s maize corns are of best quality only if they optimum moisture is retained

and maintained. Yellow maize is largely used for animal feed while white maize used as food crop which

showing steady growth. The demand by the poultry industry in India constitutes 47% of the demand in India’s

production. The district of Chittorgarh followed by Banswara and Bundi are the leading producers for

Rajasthan with scope for related PC led intervention.

But when it comes to its disposition in the target clusters of RACP, one finds that there is lack of knowledge

of maize production technologies among the local farmers such as drying systems at farm level viz. solar

based. Currently the farmers are using sun drying for maize which makes them prone to the contamination

and other foreign material infestation. The maize dryers are neither available at APMCs nor at the village level

which results in low price realization for the farmers due to high moisture content in the crop. They also face

the non-availability of improved & good quality seeds. There is lack of grading and storage facilities; and

inadequate infrastructure/ facilities with producers, traders, millers at market level resulting in marketing

inefficiencies. As a matter of fact, nearly 9 % of post-harvest losses are accounted in Maize (farm to

processing; including storage). Almost no grading is being done at farm level (leading to price cuts due to

foreign content/immature seeds over specifications/recommended tolerance level and also often due to some

malpractices; and large number of intermediaries in the chain) leading to low income to producers. Lack of

market information regarding prevailing prices, arrivals etc. force farmers to sell in the village itself. Also,

there are limited processing units for Maize and its by-products such as maize corn grit, corn flakes, etc. Also,

obsolete techniques are being used in processing, which reduces output. Shortage/surplus production,

coupled with imports level, make the prices of chickpea unstable which obviously affects producers and

consumers both. There is scope for value added products like corn starch, corn oil, corn syrup, starch of corn

used in food to roughen texture, corn flakes etc.

The price spread and values accrued to stakeholders across the chain reflects the profit margins accrued to

different stakeholders. Farmer shares 43% of the consumer’s rupee while the shares of traders, processors,

wholesalers and retailers are about 2%, 9%, 5% and 41% respectively. 55% of the value accruals are accrued

to processors, wholesalers and retailers. Producers’ incomes are apparently dependent on yield as well as their

dependency on the type of end product (eg. Maize flour, corn grit, flakes, etc.). Here in the existing value

chain of Maize, the price build up has been calculated for the important first channel where the target

consumers are urban households and institutional buyers. The product considered is maize flour.



Typically farmers sell the raw maize at about Rs 1300 per quintal to traders. In the local mandis, it was sold by

traders to the processors at Rs 1360 per quintal (with commission about 3.5% and cess of 1.5%). The

processors, upon primary and secondary value addition, sell it to wholesalers at Rs 1632 (gross margin about

20%). Thereafter the wholesale and retail prices are set up at Rs 1795 per quintal and 3051 per quintal with a

gross margin of 10% and 70% respectively. Due to limited infrastructure facilities at the dispersal of various

stakeholders, marketing efficiency is adversely affected.

The pre and indicative post intervention value chain for the commodity may be viewed as follows:

Pre Intervention Value Chain: Maize

The pre-intervention value chain for maize involves two production-distribution or activity-marketing

channels with one related to the yellow maize and the other related to the white maize. The yellow maize

largely targets the animal feed industry while the white maize targets the food (Starch, pop-corn, sweet corn

etc.) segment. At present, village traders and mandi facilitate aggregation of the produce. The producers suffer

from want of storage, grading and sorting facilities which limit the accruals value. In nut shell, gross yield of

maize is observed to be in range of 24-25 quintals per ha. Considering the market rate of the seeds is about

Rs. 13000 per ton or Rs. 13 per kg, gross realization could be in range of Rs. 30258 per ha. The cost of

cultivation, as per above illustration, is about Rs. 25538 per ha. Hence, the net realization (from sales of

grains) per ha is about Rs. 13050 per ha (including the opportunity cost of fodder at the rate of Rs 2/kg).

However, critically, the wastage during the threshing, storage and transport process could be in the range of

about 5%. The NAFED also supplies to retailers in Channel 1 and 2.

Post Intervention Value Chain: Maize

In the post intervention value chain, FPC intervention needs to be undertaken for replacing the local traders

as well APMC commission agents. There are three channels as in the existing value v=chain of maize such as

targeting value-added products like multi-grain flour i.e. Ashirvad (by large players like ITC), breakfast cereals

(Kellog’s), second channel targets large players like Cargill and CP seeds for animal feed while the third

channel targets the foreign countries for food segment.

As it is clear in the below given proposed value chain map of maize, the FPC intervention would take away

the direct share of 4% in the channel 1 while there would be direct benefit of additional 25 to the farmers.

The remaining stakeholders would remain unaffected as such from the FPC intervention. The FPC

intervention would benefit the farmers by providing them with the appropriate storage facility as well as

drying systems (solar preferably). This would positively impact the post-harvest losses which would reduce to

2-3% as compared to previously. It would also improve the holding period at the cluster level any FPCs would

have an added benefit of storage system. Also, the restructured value chain will have PC/s and their FCSC/s

replacing Mandis and undertaking aggregation plus grinding and sorting and packaging services. The PCs need

input facilitation, custom hiring and marketing of produce.

The unavailability of HYV of maize for the farmers is the critical constraint experienced by the farmers. To

overcome, a seed production programme need to be launched for availing services of Raj seeds. Also,

limitation in terms of threshers and harvester combines are apparent. At the post-harvest stage constraints in

term of high moisture content, lack of storage facility, high content of dirt and impurities in harvest can be

addressed through inputs in start-up and their linkages with large players like Cargill etc. The dissemination of

benefits of direct purchase licence and apt contract farming modes are other related interventions.



In terms of intervention on the production front, productivity is low which is also partly because of

inadequate availability of high yielding varieties. There is, therefore, scope for intervention by the way of

introduction of new high yielding varieties in the region. Line departments under RACP and NGO service-

provider may support the initiatives in terms of dissemination of benefit of going in for new high yielding

varieties. Apt amendments in the contract farming Act could further facilitate this initiative.

Traditional package of practices results in lower yield as against potential. There is therefore need to train

farmers on the best package of practices. This could also be undertaken by stakeholders like large processors.

There have been limited efforts in capacity building of farmer leaders (entrepreneurs) and BODs at the field-

level. In this regard, it may be appropriate for ABPF to enable formation of FPOs to meet minimum scale

requirements for upgrading as well as developing alternate market channels. Also, bank linkages under KCC

scheme etc. may be explored. The RACP and line departments need also work in coordination with the

NGO/service providers and the KVK etc. on high dirt content in harvested gram, harvesting of immature

grains and inadequate post-harvest infrastructure facilities for storage. The storage facility may be established

as an FCSC with assistance under the project.

There is also need for awareness seminars and b2b meets amongst processors and producers on the options

for Special Licence and to source directly from producers (effectively aggregated into FPOs/ FPCs). Scope

for re-orientation of Agri- marketing policy with reduced mandi taxes on direct procurement; and related

capacity building interventions for farmers is a necessity that may be facilitated by the ABPF.

Thus in the Common facility centre of FPC, drying would primarily be done in large scale dryers, leading to

uniform moisture loss. Moreover, the moisture content would be monitored to avoid cracking in the kernel

and hence maintaining the grain quality. Also, due to high average land holding (integration of farmers), large

scale dryers would become financially viable for the farmer. Moreover, the harvesting process would also

completely mechanized, which reduces losses due to post harvest farm activities (threshing, separating, etc.).

Storage would largely be done in the large silos/bins which are monitored & treated regularly to prevent losses

from pest attacks. The transportation would primarily through closed locked and tracked vehicles. This

reduces both the natural losses and pilferage



Chapter 1: Introduction

Maize “the Queen of Cereals” is known as corn and is one of the most important cereal crops of the world. It

is distinguished botanically as “Zea mays” and belongs to the grains family “Gramineae”. Maize is the only

food cereal crop that can be grown in different seasons. It requires moderate climate for growth, grows well in

loamy soils, but a surplus or poor rain adversely affects the yield as well as the quality. Depending on the

colour and taste, it is classified into two broad groups i.e. Yellow and White.

Yellow maize is traditionally used for animal feed and is grown mostly in the Northern hemisphere countries.

White maize which is generally considered as a food crop requires more favourable climatic conditions and is

produced only in limited countries. Based on the size and composition of the endosperm several hybrid of

maize exists viz. dent corn, flint corn, popcorn, sweet corn, etc.

The maize is an important staple food in many parts of the world and is used as an important raw material in

food processing, feed industry and in various other industrial applications.1

Figure 1: Maize crop

1 http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf



Origin and Importance

Origin

Central America and Mexico, where many diverse types of maize are found are considered to be the primary

centre of origin. Its production in India probably occurred in the beginning of the seventeenth century, during

the early days of the East India Company

It is an annual plant, which usually grows to a height of 1 meter to 3 meters or more in some cases. Maize is

normally a monoicous plant having two types of inflorescence, the female inflorescence which develops into

an ear (Cob) and male inflorescence which contains the male flowers. The male flowers are borne in the

cluster (tassel) on top of end of the stem as a terminal 1 panicle, while the female flowers are borne inside the

young cobs which spring from the nodes on the stem usually located about midway on the stalk.

Importance

Maize is grown all over the world, in more than 100 countries. It is one of the major crops in America, Africa

and Asia. America is the leader in the production of the crop. India also contributes to a major share in the

global production of maize. It is grown in almost all states of the country and some of the largest contributors

are Madhya Pradesh, Andhra Pradesh, Karnataka, Rajasthan, Uttar Pradesh, Gujarat, Maharashtra, Himachal

Pradesh, Jammu & Kashmir and Bihar.

One of the reasons maize is a staple food across the world is due to its high nutritional value, high levels of

starch, valuable proteins and oils. Depending on the variety, maize may contain a number of important B

vitamins, folic acid, Vitamin C, and pro-vitamin A (i.e., precursor to vitamin A). Maize is also rich in

phosphorus, magnesium, manganese, zinc, copper, iron and selenium, and has small amounts of potassium

and calcium. Maize is a good source of dietary fibre and protein, while being very low in fat and sodium (salt).

However, maize is naturally deficient in lysine and tryptophan, which are two of eight amino acids regarded as

essential for humans, so it needs to be part of a balanced diet.2

The different types of maize may vary in their nutritional content. Sweet corn types have more sugar, while

darker yellow varieties may have more Vitamins A. Table 1: Nutritional Value of Maize

Content Percentage on dry matte basis

Starch 71 – 72

Protein 9 – 10

Fat 4 - 4.5

Fibre 9 – 10

Sugar 2-3

Minerals (ash) 1.4

1.1. Global Scenario

Maize is grown throughout the world, although there are a lot of differences in yield of different countries.

The Food and Agriculture Organization (FAO) of the United Nations indices of agricultural production

2 http://maize.teacherfriendlyguide.org/index.php/what-is-maize/nutritional-components-cat



include commodities that are considered edible and contain nutrients, and show the relative level of the

aggregate volume of agricultural produce for each year. As per the FAO, maize has the highest production role

among all cereal crops throughout the world. For 2016-17, global maize production is marginally higher with

best contribution from almost all the major maize producing countries. The area under the crop worldwide is

estimated to be 179 million hectares. The yield is estimated at 6 metric tonnes per hectare.

Global Production of Maize

In a global context, maize output for 2016-17 as per estimate is 10,11,768 million metric tonnes, supported by

improving yields in the European Union and expanding plantings in the United States. Brazil’s maize

production for 2016-17 is estimated at 82,000 thousand metric tonnes compared to 77,500 thousand last year

whereas, maize production in Mexico for 2016-17 is estimated at 24,200 thousand metric tonnes. USA is

expected to have produce 3, 66,539 thousand metric tonnes in 2015-16. However, production was expected to

fall in China for 2016-17 to 2, 18, 000 thousand metric tonnes from 2, 24, 580 thousand metric tonnes last

year, due to drought and other adverse growing conditions.

Figure 2: Global Maize Production

Source: USDA

In 2013-14, India contributed mere 2.29% of the total maize production with a yield of 2,452 kg/ha. This is

very low as compared to that of USA which leads the global production with yield of 9,970 kg/ha.



Figure 3: Major Maize Producing Countries

Source: USDA

Global Export of Maize

Despite the fact that maize represents over one-third of total cereal trade, international trade of maize in 2016-

17 is expected to decline due to better production prospects, sufficient stockpiles and modest demand growth

in many importing countries.

Over the past few years, several countries improved their market share in the international trade, whereas new

countries entered the world market at a quick rate. Brazil, a major maize importing nation earlier has become a

main exporter of maize to world markets in recent years. For the year 2016-17, United States as usual is

projected to be the world’s largest maize exporter, followed by Brazil, Argentina and Ukraine. Russia and

European Union are among the other countries which are also major exporters.

Figure 4: Global Exports of Maize



Global Import of Maize Most of the countries in Asia are net maize importers. Japan is projected to be the world’s leading importer

for 2016-17. Mexico is anticipated to be the world’s second largest importer during 2016-17. The other major

importers include European Union, South Korea and Egypt. The demand for maize as cattle and poultry feed

is also growing.

The strong growth in the livestock industry, relaxations in trade barriers along with rising incomes are the

supporting factors behind the fast growth in Asian imports. The African countries are also major importers of

maize. Figure 5: Global Imports of Maize

Source: USDA

1.2. Indian Scenario

The production and consumption of maize have been rising steadily in India. Maize is not only used as human

food and animal feed, but also used in several other industries as a raw material. India’s maize production

depends on the southwest monsoon as more than three-fourth of the maize is produced during the Kharif

season and only one-fourth in Rabi and summer seasons.

The leading maize producing states are Andhra Pradesh, Karnataka, Bihar, Maharashtra and Rajasthan. In fact,

Karnataka, Rajasthan and Andhra Pradesh are leading in terms of maize under the cultivation. Karnataka, in

year 2011-12, was the largest producer of maize among other states. However, with 4959 kg/ha, Andhra

Pradesh led the other states in terms of productivity.



Table 2: Area Production and Productivity of Maize for 2013-2014

State Area % Share Production % Share

Andhra Pradesh 1.01 11.1 4.86 20.03

Karnataka 1.38 15.19 3.98 16.41

Maharashtra 1 11.04 2.73 11.25

Bihar 0.73 8.07 2.11 8.71

Madhya Pradesh 0.87 9.57 1.53 6.32

Tamil Nadu 0.35 3.81 1.86 7.65

Rajasthan 0.93 10.21 1.5 6.19

Uttar Pradesh 0.77 8.46 1.31 5.38

Himachal Pradesh 0.29 3.22 0.65 2.69

Gujarat 0.46 5.08 0.68 2.81

West Bengal 0.13 1.41 0.52 2.15

Jharkhand 0.26 2.82 0.52 2.13

Jammu & Kashmir 0.3 3.29 0.53 2.18

Punjab 0.13 1.43 0.51 2.09

Others 0.48 5.28 0.97 4.01

All India 9.07 100 24.26 100 A=Million Hectares, P=Million Tonnes

Source: Department of Agriculture and Cooperation

Indian Imports of Maize

The poultry industry in India alone consumes 47% of the country's total maize output. The livestock

(excluding poultry) sector accounts for around 13%, while 12% goes to starch millers and 8% is used by the

food industry. So 80% of the total maize produced is consumed locally and the remaining 20% goes for exports

and for carryover stocks.

The government of India is likely to take a call on allowing import of maize under the tariff rate quota. Maize

currently attracts 50% customs duty, making imports unviable. Notably, the government used to allow import

of 500,000 tonnes maize at a concessional import duty of 15% under the Tariff Rate Quota till (2013-14). If the

government allows import of maize under the Tariff Rate Quota, there is a possibility that traders may import

the grain during the non-harvest season. The month of Jul-Sep, a lean supply season for maize, is expected to

be seen facing a supply crunch in the year due to a poor crop in the 2015-16 Rabi season. Also, even if acreage

under the crop in the current Kharif season is higher, fresh crop would only hit the markets in October.

However, after a gap of several years, India commercially imported maize in 2015-16 due to domestic

shortages and relatively cheap international maize prices. Maize import to India in 2015-16 is estimated at 250

thousand metric tonnes and for the year 2016-17 imports are forecast at 200 thousand metric tonnes.3

Recently, in year 2016-17, the Commerce Ministry has allowed import of 5,00,000 tonnes of non-genetically

modified (GM) maize at zero duty under the TRQ. 4

Indian Exports of Maize

3 http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf 4 http://economictimes.indiatimes.com/news/economy/agriculture/government-allows-duty-free-import-of-maize-up-to-five-lakh-tonnes/articleshow/50465727.cms?intenttarget=no



Indian maize exports have declined due to uncompetitive prices in the international market. Even with a

greater production, India may not be able to export much next season as global supplies are seen sufficient.

The maize production of the world’s key maize exporters i.e. USA, Argentina, Brazil, and Ukraine is expected

to increase in 2016-17. Even if a large portion of the produce is likely to be consumed locally, there could still

be additional supply in the world market which is likely to keep global maize prices relatively benign. Among

the key importers, demand from the European Union is likely to be subdued due to the harvesting of a larger

crop in the region. Demand is seen sluggish in Japan and Vietnam as well, while China has already liquidated

maize from its reserves. In such a scenario, it would be difficult for India to export any significant quantity of

maize next season.

As regards to no major changes in the export aspects of Indian maize in the international market, India’s maize

exports for 2016-17 is projected to be 500 thousand metric tonnes, down compared to previous consecutive

years.5

Table 3: Export data of Maize

2013-14 2014-15 2015-16

Country Qty Value Qty Value Qty Value

Nepal 1,98,217.59 28,412.24 2,43,947.08 30,168.06 2,91,881.76 42,348.38

Bangladesh 5,16,258.80 85,976.28 3,63,950.53 54,545.19 1,59,028.75 29,334.01

Malaysia 8,98,103.35 1,31,841.88 4,64,158.81 64,986.68 32,736.58 5,352.40

Sri Lanka 255 42.4 1,09,176.06 16,310.48 30,463.40 5,105.24

Philippines 16,229.46 2,668.63 23,685.71 3,762.26 27,896.29 5,083.18

Total 39,54,236.60 5,98,365.76 28,25,610.60 4,03,750.83 6,50,103.37 1,08,989.66

Source: DGCIS Annual Export

1.3. State Scenario

The major producing districts in the state of Rajasthan are Bhilwara, Chittorgarh, Udaipur, Banswara and

Bundi. Bhilwara is the top maize producing district in the state having (1, 97, 735 MT) production. The top 10

maize producing districts in Rajasthan are presented in the table below

1.4. District and Cluster Scenario

The leading district in the production of maize in Rajasthan is Chittorgarh followed by Banswara and Bundi.

5 http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf



Table 4: District production report of Maize in Rajasthan

Sr. No. District in the Catchment Area Production in

MT

Rank of District in

The catchment

1 Chittorgarh 196012 1

2 Banswara 119441 2

3 Bundi 86395 3

4 Pratapgarh 63653 4

5 Jhalawar 56918 5

6 Baran 24092 6

7 Ajmer 17624 7

8 Tonk 8826 8

9 Alwar 5766 9

10 Jaipur 3157 10

Total Production in Catchment Area 585657

Table 5: Maize production in catchment area of Rajasthan

Total Production in the catchment Area (2015-16) 585657

Total Production in Rajasthan (2015-16) 1141696

Percentage share in the State Production 51%

Top Producing Districts in the catchment zone Chittorgarh, Banswara, Bundi



1.5. Approach to Value Chain Analysis

In order to evaluate the value chain of Maize, consultations were held with major stakeholders in the chain

including farmers, Consumers, Processors, traders, supporting public and private service providers and

institutions etc. in various parts of the state. Major maize producing clusters were considered for survey within

Rajasthan.

Table 6: Surveyed Major stakeholders for the Value chain Analysis of Maize

Surveyed Markets for the Value Chain Analysis

Within and Outside Rajasthan

1. Farmers in Banswara cluster (5)

2. Farmers in Manoharthana cluster (5)

3. Farmers in Bundi cluster (5)

4. Farmers in Orai- Bassi cluster (5)

5. Farmers in Jakham cluster (5)

6. CP Seeds, Kota (Processor)

7. Soufflet India ltd, Kota (Processor)

8. Rajaram & Brothers, Mandsaur (M.P) (Processor)

9. Godrej Agrovet, Punjab (Processor)

10. Cargill, Punjab (Processor)

11. Mahindra Karan, Anaj Mandi, Kota (trader)

12. Rakhabchan Lalitkumar, Manoharthana (trader)

13. Bairulal Mangilal Rathor , Manoharthana (trader)

14. Lalchand Ashok kumar, Manoharrthana(trader)

15. Jain Traders, Hemant kumar, Bundi(trader)

16. Laxmi traders Narendra Jaju, Bundi(trader)

17. Sethia Associates, Bundi(trader)

18. DCA, Dep. of Agriculture, Jhalawad

19. DC, Dep. of Agriculture, jhalawad

20. DC,Dep. of Horticulture, Jhalawad

21. Secretary, APMC, Jakham

22. CEO of FPC (SMPCL, Bundi,)

23. T.L, NGO, Manoharthan

24. JD, Livestock, Jhalawad

25. DD, ATMA, Bassi

26. Director, ATSC, Bassi

27. Agriculture Expert, NGO, Banswara



1.6. Resourcing mapping of value chain

Resource mapping of Maize value chain is done by identification cluster, major mandis, major markets,

warehouses, etc. Following is the detail resource mapping of value chain:

Table 7: Resource mapping of value chain

Cluster Major mandi/s around cluster

Distance from major cities nearby

Major Markets Warehouses/ Cold store with Capacity

No of FPCs targeted

Kushalgarh (Banswara)

a. Bundi b. Kota

83 km 88 km

Bhilwara (4), Chittorgarh (6), Pali (3), Kota (3)

Banswara (12200 MT)

2

Gudha (Bundi)

a. Bundi b. Kishoraipat

an c. Sumerganj d. Dei

-17 km -70 km -120 km -70 km

Ajmer (6), Baran (4), Kota (3), Sawai Madhopur (1), Tonk (4)

Bundi (24620 MT) Kapren (6750 MT) Keshoraipatan (6000 MT)

2

Jakham (Pratapgarh)

a. Pratapgarh b. Dhariawad c. Nimbaheda

-20 Km -10 Km -20 km

Baran (4), Bundi (4), Chittorgarh (6), Kota (3)

Pratapgarh (18450)

2

Orai bassi (Chittorgarh)

a. Chittorgarh b. Nimbahera c. Pratapgarh d. Begu e. Badisadri f. Neemuch

-25-40 km -55 km -145 km -20 Km -60 Km -60-70 km

Ajmer (6), Bhilwara (4), Bundi (4), Chittorgarh (6), Kota (3), Tonk (4)

Chittorgarh (17250 MT) Nimbahera (13500 MT)

2

1.7. Marketable surplus of Maize in Cluster

Following is the marketable surplus of Maize in cluster:

Table 8: Marketable surplus of Maize in cluster

Cluster Area under crop

cultivation (in Ha)

Production (in T)

Marketable surplus in MT (as % of total production;

90% for maize)

Market Value (in Rs Lakh)

Kushalgarh (Banswara) 2387 4077 3669 514

Gudha (Jhalawar) 9076 25384 22846 3198

Jakham (Pratapgarh) 9892 14343 12908 1807

Orai bassi (Chittorgarh) 5622 16915 15223 2131



Chapter 2: Pre Harvest Management

2.1. Major Commercial Varieties of Maize Grown In Cluster

The major varieties of hybrid grown in Rajasthan are P3522 (X35A019) , P1864 (X35A019) , CoH (M) 9,

CMH 08-350, (Single cross Hybrid Corn), CoH (M)8 (CMH 08-292), DHM 121 (BH 41009). KMH-25K45

(2700) (BUMPER), Bio 9544 (BIO 151). The maturity days, yield and recommended zone of

each variety is given below:

Table 9: Maize variety production in Rajasthan

States

Extra early maturity Early maturity Medium maturity

Late maturity

Rajasthan

Vivek 4 & 17, Parkash ,Pro 368, X 3342 H: HM 10, NK 21

H: Trishulata, Pro 311,

Bassi selected,Navjyot(J-684) GM-6 Mahi kanchan mahi kanchan

C: Pratap Makka 3, Aravali Makka 1,

C: Pratap Makka 5

Seed Tech 2324

Jawahar Makka 8,Amar, Azad Kamal,

PEHM-1,2

Bio 9681,

Pant Sankul Makk 3, Bio-9637

H:Pratap hybrid 1

(Source: List of field crops varieties / hybrids released and notified 2014; Division of Crop Science, Indian Council of

Agricultural Research, New Delhi. (http://www.iasri.res.in/agridata/15data/chapter2/db2015tb2_3.pdf)

2.2. New Initiatives and Practices

Maize has wide adaptability and compatibility under diverse soil and climatic conditions. HEnce, it is cultivated

in sequence with different crops under various agro-ecologies of the country. Therefore, it is considered as one

of the potential drivers of crop diversification under different situations. Among different maize based

cropping systems, maize-wheat ranks 1st

having 1.8mha area mainly concentrated in rain fed ecologies. Maize-

wheat is the 3rd

most important cropping system after rice-wheat and rice-rice that contributes about 3 % in

the national food basket. The other major maize systems in India are maize-mustard, maize-chickpea, maize-

maize, cotton-maize etc. Recently, due to the changing scenario of natural resource base, rice-maize has

emerged a potential maize based cropping system in peninsular and eastern India. Maize based high value

intercropping systems are also gaining importance due to market driven farming. Further, maize has

compatibility with several crops of different growth habit that led to development of various intercropping

systems. Studies carried out under various soil and climatic conditions under All India Coordinated Research

Project on Cropping Systems revealed that compared to existing cropping systems like rice-wheat and rice-rice,



maize based cropping systems are better user of available resources and the water use efficiency of maize

based cropping systems was about 100 to 200 % higher at different locations.

Table 8: Maize Intercropping

Intercropping systems Suitable area/situation

Maize + Pigeon pea Maize + Cowpea Maize +

Mungbean Maize + Urdbean All maize growing areas

Maize + high value vegetables Maize + flowers

Baby corn + vegetables Sweet corn + vegetables Peri-urban interface

Source: Agmarknet

2.3. Seasonal Pattern of Maize in Rajasthan visa-vis other parts of the world

Maize cultivation requires warm weather, fertile and well drained soils. It is adapted to grow under diverse

climatic conditions. Temperature requirement for germination is 21°C and for growth 32°C. Extremely high

temperature and low humidity during flowering damage foliage thereby resulting in poor grain formation. This

crop requires well distributed rainfall. Therefore, in India major maize cultivation is taken up in rainfed

conditions i.e., around 80-82% of annual production comes from Kharif whereas left over production come

from Rabi and the summer season. It is highly susceptible to waterlogged and moisture stress conditions

particularly during its early stages of growth.

In Kharif, it is sown in March-July till mid-August and harvested from mid-September. The arrivals extend

from late September to February. The major states producing maize during the kharif season are Karnataka,

Andhra Pradesh, Maharashtra, Madhya Pradesh, Uttar Pradesh, etc. In Rabi, it is sown in September-December

in Bihar, Uttar Pradesh, Punjab and coastal region of Andhra Pradesh, Karnataka, etc. The arrivals start from

late March and extend up to July.

Figure 6: Seasonal Availability of Maize

Location Jan Feb Mar April May June July Aug Sept Oct Nov Dec

United States

Sowing Harvesting

China Sowing Harvesting

EU Sowing Harvesting

Brazil Harvesting Sowing

India Sowing Harvesting

Rajasthan Sowing Harvesting

Source: ICAR

2.4. Land Preparation

One deep summer ploughing immediately after harvesting of rabi crop and followed by one light ploughing by

country plough followed by planking is recommended. In case of heavy soils two to three deep ploughings are

needed where as in light soils too much tillage is wasteful. During Kharif season the crop has to be protected



from waterlogging and hence, it is essential to provide ridges and furrows and to sow maize seeds are sown on

the sides of the ridges. In this case fertilisers, they are applied only on ridges. Maize responds well to minimum

tillage. Single ploughing or zero tillage coupled with parquet sprayed at 1 lit/ha before and after sowing is a

good alternative to taking up timely sowing when timely seed bed preparation through conventional tillage

methods get delayed.

Tillage and crop establishment is the key for achieving the optimum plant stand that is the main driver of the

crop yield. Though the crop establishment is a series of events (seeding, germination, emergence and final

establishment) that depends on interactions of seed, seedling depth, soil moisture, method of sowing,

machinery etc. but, the method of planting plays a vital role for better establishment of crop under a set of

growing situation. Maize is mainly sown directly through seed by using different methods of tillage &

establishment but during winters where fields remain vacant in time (till November), transplanting can be done

successfully by raising the nursery. However, the sowing method (establishment) mainly depends on several

factors viz the complex interaction over time of seeding, soil, climate, biotic, machinery and management

season, cropping system, etc. Recently, resource conservation technologies (RCTs) that include several

practices viz. zero tillage, minimum tillage, surface seeding etc. had come in practice in various maize based

cropping system and these are cost effective and environment friendly. To note, it is very important that

different situations require different sowing methods for achieving higher yield as described below:

Raised bed (ridge) planting: Generally, the raised bed planting is

considered as best planting method for maize during monsoon

and winter seasons both under excess moisture as well as limited water

availability/rainfed conditions. Sowing/planting should be done on the

southern side of the east-west ridges/beds, which helps in good

germination. Planting should be done at proper spacing. Preferably, the

raised bed planter having inclined plate, cupping or roller type seed

metering systems should be used for planting that facilitates in

placement of seed and fertilizers at proper place in one operation that

helps in getting good crop stand, higher productivity and resource use efficiency.

Using raised bed planting technology, 20-30 % irrigation water can be saved with higher productivity. Moreover,

under temporary excess soil moisture/water logging due to heavy rains, the furrows will act as drainage channels

and crop can be saved from excess soil moisture stress. For realizing the full potential of the bed planting

technology, permanent beds are advisable wherein sowing can be done in a single pass without any preparatory

tillage. Permanent beds are more beneficial under excess soil moisture

situations as the infiltration rate is much higher and crop can be saved

from the temporary water logging injury.

Zero-till planting: Maize can be successfully grown without any

primary tillage under no-till situation with less cost of cultivation, higher

farm profitability and better resource use efficiency. Under such

condition one should ensure good soil moisture at sowing and seed and

fertilizers should be placed in band using zero- till seed-cum-fertilizer



planter with furrow opener as per the soil texture and field conditions. The technology is in place with large

number of farmers particularly under rice-maize and maize-wheat systems in peninsular and eastern India.

However, use of appropriate planter having suitable furrow opener and seed metering system is the key of

success of the no-till technology.

Conventional till flat planting: Under heavy weed infestation where

chemical/herbicidal weed management is uneconomical in no-till and

also for rainfed areas where survival of crop depends on conserved soil

moisture, in such situations flat planting can be done using seed-cum-

fertilizer planters.

Transplanting: Under intensive cropping systems where it is not

possible to vacate the field on time for planting of winter maize, the

chances of delayed planting exists and due to delay planting crop

establishment is a problem due to low temperature so under such

conditions transplanting is an alternative and well established technique

for winter maize. Therefore, for the situation where fields are vacated

during December-January, it is advisable to grow nursery and transplant

the seedlings in furrows and apply irrigation for optimum crop

establishment. Use of this technique helps in maintenance of temporal

isolation in corn seed production areas for production of pure and good quality seed as well as quality protein

maize grain. For planting of one hectare, 700 m2

nursery area is required and the nursery should be raised during

second fortnight of November. The age of seedlings for transplanting should be 30-40 days old (depending on

the growth) and transplanting be done in the month of December-January in furrows to obtain higher

productivity.6

2.5. Sowing, Planting and Cultivation

Seed Sources Obtain higher grade seed (to produce certified seed, foundation seed is to be obtained) from source approved by

the concerned state seed certification agency. If seed production is for private company, then that company will

supply seed.

Seed Treatment

To protect the maize crop from seed and major soil borne diseases and insect-pests, seed treatment with fungicides

and insecticides before sowing is advisable/ recommended as follows:

Table 10: Seed Treatment of Maize

Disease/insect-pest Fungicide/Pesticide Rate of application (g kg-1 seed)

Turcicum Leaf Blight,, Banded Leaf and Sheath Blight, Maydis Leaf Blight

Bavistin + Captan in 1:1 ratio

2

BSMD Apran 35 SD 4

6 http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf



Pythium Stalk Rot Captan 2.5

Termite and shoot fly Imidachlorpit 4

Source: http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf (Maize

Production Technologies in India)

Maize can be grown successfully in a variety of soils ranging from loamy sand to clay loam. However, soils with

good organic matter content having high water holding capacity with neutral pH are considered good for higher

productivity. Being a sensitive crop to moisture stress particularly excess soil moisture and salinity stresses; it is

desirable to avoid low lying fields having poor drainage and also the field having higher salinity. Therefore, the

fields having provision of proper drainage should be selected for cultivation of maize.

To achieve higher productivity and resource-use efficiencies optimum plant stand is the key factor. The seed rate

varies depending on purpose, seed size, plant type, season, sowing methods etc. The following crop geometry and

seed rate should be adopted.

Table 11: Seed rate and plant geometry of Maize

Sr.No. Purpose Seed rate (kg ha-1

) Plant geometry (plant x

row, cm) Plant population

1 Grain (normal and QPM) 20 60 x 20

75 x 20

83333

66666

2 Sweet corn 8 75 x 25

75 x 30

53333

44444

3 Baby corn 25 60 x 20

60 x 15

83333

111111

4 Pop corn 12 60 x 20 83333

5 Green cob (normal maize) 20 75 x 20

60 x 20

66666

83333 6 Fodder 50 30 x 10 333333

Source: Farmers’ portal

http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf (Maize Production Technologies in India)

Planting can commence as soon as groundwater and soil temperature are suitable for good germination. If a

minimum air temperature of 10 to 15 ºC is maintained for seven successive days, germination should proceed

normally. Virtually no germination or growth takes place below 10 ºC. Planting should be scheduled such that

the most heat and water sensitive growth stage of maize (i.e. the flowering stage) does not coincide with

midsummer droughts.

Planting depth and plant technique

Planting depth of maize varies from 5 to 10 cm, depending on the soil type and planting date. As a rule, planting

should be shallower in heavier soils than in sandy soils.

Plant population and row width

To achieve higher productivity and resource-use efficiencies optimum plant stand is the key factor. The seed rate

varies depending on purpose, seed size, plant type, season, sowing methods etc. The following crop geometry and

seed rate should be adopted.



Table 12: Guidelines for choosing row width

Purpose Seed rate (kg/ha) Plant geometry (plant*row,cm) Plant population

Grain (normal and QPM) 20 60 x 20 75 x 20

83333 66666

2.6. Climatic and Soil Requirement

Temperature

Maize is a warm weather crop and is not grown in areas where the mean daily temperature is less than 19 ºC or

where the mean of the summer months is less than 23 ºC. Although the minimum temperature for germination is

10 ºC, germination will be faster and less variable at soil temperatures of 16 to 18 ºC. At 20 ºC, maize should emerge

within five to six days. The critical temperature detrimentally affecting yield is approximately 32 ºC. Frost can damage

maize at all growth stages and a frost-free period of 120 to 140 days is required to prevent damage. While the

growth point is below the soil surface, new leaves will form and frost damage will not be too serious. Leaves of

mature plants are easily damaged by frost and grain filling can be adversely affected.

Water

Approximately 10 to 16 kg of grain are produced for every millimetre of water used. A yield of 3 152 kg/ha requires

between 350 and 450 mm of rain per annum. At maturity, each plant will have used 250 l of water in the

absence of moisture stress.7 Maize can be grown in all seasons viz; Kharif (monsoon), post monsoon, Rabi

(winter) During Rabi season, to achieve higher yield at farmer’s field, assured irrigation facilities are required.

During the Kharif season, it is desirable to complete the sowing operation 12-15 days before the onset of

monsoon. However, in rainfed areas, the sowing time should be coincided with the onset of monsoon. The

optimum time of sowing are given below:

Table 13: Climatic Conditions for Maize

Season Optimum time of sowing

Kharif Last week of June to first fortnight July

Rabi Last week of October for inter cropping and up to 15th

of

November for sole crop

Maize and Climate Change

Under the changing climate scenario, the limitations of rising temperature during grain filling of wheat

particularly in eastern India, and declining yield of boro rice in West Bengal and Orissa, water scarcity areas in

peninsular India (AP and Tamil Nadu) affecting yield of Rabi rice, maize being a photo-insensitive crop has

better options for adaptation and mitigation of these climatic changes. Peninsular India is considered to be a

neutral environment for maize wherein maize can be cultivated in either of the seasons. Therefore, it is emerging

as a potential driving force for diversification i.e. diversification of rice-rice with rice-maize and other maize

based high value cropping systems. In these areas, water scarcity/lowering of water table is a major concern in

the rice growing belt of India and making rice cultivation non-remunerative. Hence, maize has emerged as a

potential as well as profitable crop in these areas. The Rabi rice in Peninsular India and upland rice in Odisha and

NEH region has low productivity. Therefore, maize is the only suitable alternative crop and more area is likely to



shift towards maize cultivation in the near future in these non-traditional areas. Wheat crop adversely affected

with terminal heat due to sudden rise in temperature during crop growth and maturity but this favours maize

crop positively.8

Therefore, in view of the changing farming scenario in the country, maize has been emerging as one of the

potential crops that addresses several issues like food and nutritional security, climate change, water scarcity,

farming systems, bio-fuel etc. Further, a recent study by the National Centre for Agricultural Economics and

Policy Research (NCAP) has showed that there is an increasing demand for maize in the industry sector which

caters to consumer needs like textiles, paper, glue, alcohol, confectionery, food processing and pharmaceutical

industry etc., of which the demand keeps on increasing with population pressure.

Soil Requirement

Deep fertile soils rich in organic matter and well-drained soils are the most preferred ones; however, maize can be

grown on variety of soils. The most suitable soil for maize is one with a good effective depth, favourable

morphological properties, good internal drainage, an optimal moisture regime, sufficient and balanced quantities of

plant nutrients and chemical properties that are favourable specifically for maize production. Although large-scale

maize production takes place on soils with a clay content of less than 10 % (sandy soils) or in excess of 30 % (clay

and clay-loam soils), the texture classes between 10 and 30 % have air and moisture regimes that are optimal for

healthy maize production. Soil should be medium textured with good water holding capacity.

Loam or silt loam surface soil and brown silt clay loam having fairly permeable sub soil are the ideal soil types.

Crop is very sensitive to water logging. As the crop is mainly grown in Kharif season well drained soils are

required.

The pH should be between 6.5 to 7.5 along with CEC of 20 meq/100g and base saturation of 70 to 90 per cent,

bulk density of 1.3 g/cc water holding capacity of about 16 cm per meter depth.

2.7. Nutrients Management

Among all the cereals, maize in general and hybrids in particular are responsive to nutrients applied either

through organic or inorganic sources. The rate of nutrient application depends mainly on soil nutrient

status/balance and cropping system. For obtaining desirable yields, the doses of applied nutrients should be

matched with the soil supplying capacity and plant demand (Site-specific nutrient management approach) by

keeping in view of the preceding crop (cropping system). Response of maize to applied organic manures is

notable and hence integrated nutrient management (INM) is very important nutrient management strategy in

maize based production systems. Therefore, for higher economic yield of maize, application of 10t FYM ha-

1, 10-15 days prior to sowing supplemented with 150-180 kg N, 70-80 kg P2O5, 70-80 kg K2O and 25 kg

ZnSO4 ha-1

is recommended. Full doses of P, K and Zn should be applied as basal preferably drilling of

fertilizers in bands along the seed using seed-cum-fertilizer drills. Nitrogen should be applied in 5-splits as

detailed below for higher productivity and use efficiency. N application at grain filling results in better grain

filling. Therefore, nitrogen should be applied in five splits as per below mentioned for higher N use efficiency.

8 Maize Production Technologies in India; (http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf)



Table 14: Nutrient Management for Maize

Sr. No. Crop Stage Nitrogen rate (%)

1 Basal (at sowing) 20

2 V4 (four leaf stage) 25

3 V8 (eight leaf stage) 30

4 VT (tasseling stage) 20

5 GF (grain filling stage) 5

Source: Maize Production Technologies in India

(http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf)

Nutrient deficiencies in crops reduce yields, quality and profits to the farmer. Yield can often be reduced 10-30%

by deficiencies of major nutrients before any clear symptoms of deficiency are observed in the field.9

2.8. Water Management

Irrigation water management depends on the season as about 80 % of maize

is cultivated during monsoon season particularly under rainfed conditions.

However, in areas with assured irrigation facilities are available, depending

upon the rains and moisture holding capacity of the soil, irrigation should be

applied as and when required by the crop and first irrigation should be

applied very carefully wherein water should not overflow on the

ridges/beds. In general, the irrigation should be applied in furrows up

to2/3rd

height of the ridges/beds. Young seedlings, knee high stage (V8),

flowering (VT) and grain filling (GF) are the most sensitive stages for water

stress and hence irrigation should ensure at these stages. In raised bed

planting system and limited irrigation water availability conditions, the

irrigation water can also be applied in alternate furrow to save more

irrigation water.

Figure 7: Water Management of Maize

In rainfed areas, tied-ridges are helpful in conserving the rainwater for it availability in the root zone for longer

period. For winter maize, it is advisable to keep soil wet (frequent & mild irrigation) during 15 December to 15

February to protect the crop from frost injury.10

Irrigation schedule for Kharif maize is as under:

The crop is grown rain fed during the Kharif season where the distribution of rainfall is enough to ensure

adequate soil moisture during the life cycle of the crop.

For constructing high & stable yields, the available sources of irrigation should be tapped to provide 1 or 2

irrigation at the critical stages in any dry spell period.

9 Maize Production Technologies in India (http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf) 10 Maize Production Technologies in India (http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf)



Maize is known to be susceptible to water logging as well as soil moisture stress.

Sowings made on ridge is with the provision of surface drainage can overcome the constraints of

waterlogging in uplands.

Maize is susceptible to moisture stress throughout its life cycle. Since flowering and grain-filling stages are

most critical, the crop should be irrigated at these stages, if rains fail.

Irrigation schedule for Rabi maize is as below:

The rainfall during Rabi is rather inadequate for successful cultivation of high-yielding maize hybrids.

Timely availability of assured irrigation is one of the major factors determining the success to crop.

Here soils are generally light; it is desirable to schedule the irrigations at 70% soil-moisture availability

throughout the period of crop growth and development.

Heavy soils, a moisture level of 30% during the vegetative stage and 70% during the reproductive and

grain-filling period is desirable for obtaining optimum yield.

Four to six irrigations are needed during the Rabi crop season. If six irrigations are given, they should be

applied at the following crop growth stages

Two irrigations up to flowering at an interval of 20-25 days

One (essential) at the time of flowering

Two after flowering

One at the early grain-filling stage.

If only five irrigations are given, one irrigation at the vegetative stage may be avoided and if only four

irrigations are given, irrigation after the dough stage may be avoided. The irrigation schedule may,

however be charged suitably if adequate rains are received.

2.9. Weed Management

Successful cultivation of maize depends largely on the efficacy of weed control. Weed control during the first six to

eight weeks after planting is crucial, because weeds compete vigorously with the crop for nutrients and water

during this period.

Annual yield losses occur as a result of weed infestations in cultivated crops. The annual yield loss in maize

because of weed problems is estimated to be approximately 10 %. The loss occurs as a result of weed competition

for nutrients, water and light.

The presence of weeds during harvesting may slow the process, pollute grain with seeds, transmit odours to grain,

causing downgrading, or incur additional costs for removal of seeds. Certain seeds, such as those of the thorn

apple (Datura), may be poisonous when consumed by animals or humans.

Methods of Weed Control Physical methods

Weeds can be removed mechanically, by implements or by hand. Dense stands of weeds may be burnt as an

emergency measure.

Cultural practices

Ploughing during winter or early spring is an effective method of destroying the majority of weeds. To control

weeds during the season, crops may be planted in wide rows for mechanical control. Certain problem weeds in

maize can be controlled by an alternative crop where crop rotation is practised.



Chemical methods

Chemical liquids, granules or gases are used to kill germinating or growing weeds, or even weed seeds. Control of

nut grass with pre-emergence herbicides is not effective when applied after emergence. It is important to cultivate

fields before applying herbicides.11

2.10. Pests & Diseases Management

Pest Management Stem Borer (Chilo partellus)

Major pest of maize in India is the Stalk borer. Chilo partellus, popularly known as stalk borer that occurs during

monsoon season is a major pest throughout the country. Chilo lays eggs 10-25 days after germination on lower

side of the leaves. The larva of the Chilo enters in the whorl and cause damage in the leaves.

Pink Borer (Sesamia inference)

Sesamia inference occurs during winter season particularly in peninsular India.

The moth of the Sesamia is nocturnal and lays eggs on lower leaf sheath. The

larvae of the Sesamia enters the plant near the base and cause damage to the stem.

Control of Profenofos 50 EC 2ml/litre and Sesamia: For control of Chilo

and Sesamia, foliar spray of profenotos50 EC 2ml/ltr 10 days after germination

is very effective. The Chilo can also be controlled by release of 8 Trichocards

(1.5 lakh/ha)(Trichogramma chilonis) per hectare at 10 days after germination.

Intercropping of maize with suitable varieties of cowpea is an eco- friendly

option for reducing the incidence of Chilo on maize.

Shoot fly (Atherigona sp.)

In South India it is a serious pest but it also appears on spring and summer maize

crop in North India. It attacks mainly at seedling stage of the crop. The tiny

maggots creep down under the leaf sheaths till they reach the base of the

seedlings. After this they cut the growing point or central shoot which results in

to dead heart formation.

11 http://www.arc.agric.za/arc-gci/Fact%20Sheets%20Library/Maize%20Production.pdf



Control of Shootfly:

• Sowing must be completed before first week of February so that the crop will escape shootfly infestation.

• Spring sowing must be accompanied with seed

treatment with Imidacloprid

@ 6ml/kg seed.

Termites (Odontotermes obesus)

Termite is also an important pest in many areas. For control of termite

fepronil granules should be applied @ 20 kg ha-1

followed by light

irrigation. If the termite incidence is in patches, than spot application of

fepronil @ 2-3 granuled/plant should be done. Clean cultivation delays

termite attack.

Other emerging pests:

Recently some other non-traditional pests are also causing damage to maize crop viz. larvae of American

Bollworm (Helicoverpa armigera) which causes damage to cob in Southern part of India while the Chaffer beetle

(Chiloloba acuta) feeds on maize pollen which adversely affects pollination in northern part of India.

American bollworm Chaffer beetle

Disease management

Across the country several diseases occurs during different seasons, if they are not managed at proper time than

they lead to yield loss. BLSB, Pythium stalk rot, Bacterial stalk rot, PFSRs, Polysora rust and Downy mildews are

the major constraints to be tackled for realizing genetic potential yield of the crop. Estimated losses due to major

diseases of maize in India is about 13.2% of which foliar diseases (5 %), stalk rots, root rots, ear rots (5 %) cause

major yield losses. The major diseases and their management practices are described as below:



Turcicum leaf blight (Exserohilum turcicum)

The disease is prevalent in cooler condition with high humidity of Jammu & Kashmir, Himachal Pradesh,

Sikkim, West Bengal, Meghalaya, Tripura, Assam, Rajasthan, Uttar Pradesh, Uttarakhand, Bihar, Madhya

Pradesh, Gujrat, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. Long, elliptical, greyish green or tan

lesions (2.5-15 cm) appear on lower leaves progressing upward. Grow PEMH-5, Vivek 21, Vivek 23, Vivek 25,

Pratap Kanchan 2,Nithyashree in the recommended areas followed by need based sprays of mancozeb @ 2.5

g/litre (with adjuant @ 0.05%) at 8-10 days interval.

Maydis leaf blight (Drechslera maydis)

It is a major disease in the states of

Jammu & Kashmir, Himachal Pradesh,

Sikkim, Meghalaya, Punjab, Haryana,

Rajasthan, Delhi, Uttar Pradesh, Bihar,

Madhya Pradesh, Gujrat, Maharashtra,

Andhra Pradesh, Karnataka and Tamil

Nadu having warm humid temperate to

tropical climate in the cropping period.

Lesions on the leaves elongated

between the veins, tan with buff to

brown or dark reddish brown borders.

Lesion size may vary in inbreds and hybrids due to different genetic backgrounds. Growing of HM 10, PAU 352,

Malviya Hybrid Makka 2, EMH 1, HQPM 7, HQPM 5, HQPM 1, Shaktiman 3, Shaktiman 4, PEMH– 5, HQPM-

4, and HSC-1 with need based sprays of mancozeb or zineb @ 2.5g/litre of water, is recommended.

Common rust (Puccinia sorghi) This rust attacks in the maize growing areas with subtropical temperate and high land environment of Rajasthan,

Jammu & Kashmir, Himachal Pradesh, Sikkim, Meghalaya, West Bengal, Punjab (Rabi), Haryana (Rabi), Uttar

Pradesh, Bihar (Rabi), Madhya Pradesh, Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu. It appears at

the time of tasselling. The circular to elongate, golden brown to cinnamon brown pustules are visible over both

leaf surfaces changing to brownish black at plant maturity. It is recommended to adopt promising hybrids/



varieties viz.; Buland, Sheetal, HHM 1, HHM 2 and HQPM 1, Nithyashree; Spray of mancozeb@ 2.5g/litre of

water at first appearance of pustules; prefer early maturing varieties.

It is reported from coastal areas of A.P. and Karnataka where mild temperature and high relative humidity

prevail. Light cinnamon golden brown circular to oval pustules appear on leaf densely spread on the upper

surface of leaf. Development of pustules on lower surface is more as compared to upper surface. The maize

composites namely NAC-6002 (early maturity) and NAC- 6004 (late maturity) and the hybrid Hema (NAH–

1137), Nithyashree (NAH–2049) and Deccan– 105 were resistant to Polysora rust disease of maize. Hence these

can be recommended for cultivation.

Banded leaf and sheath blight (Rhizoctonia solani f. sp. Sasakii)

This disease mainly occurs in Jammu and Kashmir, Himachal Pradesh,

Sikkim, Punjab, Haryana, Rajasthan, Madhya Pradesh, Delhi, Uttar

Pradesh and Bihar. At appearance of the disease, white lesions

developson leaves and sheath. Purplish or brown horizontal bands

present on white lesions. This disease is appearing in severe form in hot

humid foothill region in Himalayas and in plains covering states of

Jammu & Kashmir, Himachal Pradesh, Almora, Sikkim, Meghalaya,

Assam, Nagaland Punjab, Haryana, Rajasthan, Madhya Pradesh, Delhi,

Uttar Pradesh and Bihar. The disease appears on leaves and

sheaths on 40-50 days old plants and later on spread to the ears. The characteristic lesions appear as concentric

bands and rings on lower leaves and sheaths (first and second). The affected plant produces large, gray, tan or

brown discoloured areas alternating with dark brown bands. Sclerotia later on are formed in these areas. The

developing ear is completely damaged and dried up prematurely with cracking of the husk leaves. Brown rotting

of the ears may develop which show conspicuous light brown cottony mold with small, round black sclerotia.

Stripping of lower 2-3 leaves along with their sheath considerably lowers incidence. Pratap Kanchan 2, Pratap

Makka 3, Pratap Makka 5, Shaktiman 1 and Shaktiman 3 have tolerance to this disease. Seed treatment with peat

based formulation @ 16 g/kg of Pseudomonas fluorescence or as soil application @ 7g/litre of water,

carbendazim, thiophanate-methyl a n d captan and foliar spray (30-40 days old crop) of tolcofos-methyl @ 1g/

litre or validamycin @ 2.7ml/litre of water.



Pre-flowering stalk rots (Pythium aphanidermatum & Erwinia chrysanthemi p.v. zeae)

The high incidence of Pythium and bacterial stalk rots favoured by high temperature and high relative humidity in

states of Sikkim, Himachal Pradesh, West Bengal, Punjab, Haryana, Rajasthan, Delhi, Uttar Pradesh and Bihar. In

addition, incidence of bacterial stalk rot is also reported from Uttarakhand, Madhya Pradesh and Andhra Pradesh.

In Pythium stalk rot, the diseased area of the stalk is brown, water-soaked, soft and collapsed usually confined to

a single internode just above the soil line. The plants get twisted due to rotting at infected portion resulting in

lodging. In contrast, bacterial stalk rot pathogen can infect the plant at any node from the soil surface up to the

whole plant. Primary symptoms of discoloration due to tan to dark brown, water soaked slimy lesions on the leaf

sheath and stalk generally appear when plant suddenly falls over and are seen scattered in the field. Splitting of

stalk exposes internal discoloration and soft slimy rot at the nodes. A foul odour can be sensed from macerated

tissues and the top of such plants can be very easily removed from the rest of the plant. Good field drainage (to

avoid waterlogging), planting time between 10 and 20th

July in North India, plant population of not more than

50,000/ha reduce occurrence of the disease. PEMH- 1, X-1280, HQPM-4, PAU 352, PEMH- 5, DKI – 9202,

DKI – 9304 are having tolerance to these stalks. Application of 75% captan @ 12 g/100 litre of water and

bleaching powder (33% chlorine) @ 10 kg/ha as soil drench help in the control of these stalks.

Flowering Stalk Rot of Maize (PFSR)

The PFSR occurs mainly in Rajasthan, Uttar Pradesh, Bihar and Andhra Pradesh. Disease appears when the

crop enters in senescence phase. The pathogen commonly affects the roots crown regions and lower

internodes. When split open, the stalk shows pink-purple dis-colouration. For effective control of the disease,

water stress at flowering should be avoided. Using balanced dose of nutrients wherein potassium application

helps in minimizing the disease. Use of bio-control agents (Trichoderma formulation) in furrows mixed with

FYM @ 10g/kg at 10 days prior to its use in the field. It is advisable to practice crop rotation to minimize the

disease incidence.

Downy Mildews (DM)

This group of pathogens constitutes one of the most important factors limiting maize production in India. The

important species causing downy mildew in maize in India are the Sorghum downy mildew (SDM;

Peronosclerospora sorghi), Brown stripe downy mildew (BSDM; Sclerophthora rayssiae var. zeae) and Rajasthan

downy mildew (RDM; Peronosclerosporahetropogoni). BSDM is found in Himachal Pradesh, Sikkim, West

Bengal, Meghalaya, Punjab, Haryana, Rajasthan, Uttarakhand, Bihar, Madhya Pradesh and Gujrat; SDM in Gujrat,

Maharashtra, Andhra Pradesh, Karnataka, Tamil Nadu and RDM in Rajasthan and surrounding areas. In BSDM,

narrow, chlorotic or yellowish stripes with well-defined margins and delimited by the veins appear on leaves.

Downy or woolly cottony whitish growth is visible in early morning hours on lower surfaces of the lesions.



Chlorotic plants are seen in SDM infected fields and the affected area includes the base of the blade with

transverse margin and easily defined between diseased and healthy tissue. RDM symptoms are characterized by the

pale appearance of bases of second & third diseased leaves of the seedling giving a complete chlorosis or chlorotic

strips. Severely infected plants give yellowish appearance even from a distance. Most of the infected plants die at

about knee-high stage. The local or secondary symptoms start appearing from 2-3 leaf stage until tassels and silks

are formed. Under humid conditions whitish fluffy growth due to abundant fructification of

the fungus can be observed on the lower and upper leaf surfaces. Tassels may be malformed producing less pollen

while ears may be aborted resulting in partial or complete sterility. In early symptoms plants are stunted and may

die. Rogue and destroy infected plants as they appear in the field. Avoid maize-sorghum crop rotation in field

where disease has occurred. Avoid sowing of maize adjacent to a field of maize or sorghum to avoid the spread

of secondary infection. Early planting of maize escapes RDM infection. Using of resistant varieties /hybrids

(PAU 352, Pratap Makka 3, Gujarat Makka 4, Shalimar KG 1, Shalimar KG 2, PEMH– 5, Bio 9636, NECH- X-

1280, DMH 1, NAC 6002, COH (M) 4, COH (M) 5, Nithyashree; is recommended. Seed should invariably be

treated with metalaxyl @ 2.5g/kg seed and need based foliar sprays of systemic fungicide such as metalaxyl @ 2-

2.5g/L is recommended at first appearance of disease symptoms.

2.11. Recommended Good Agricultural Practices

Good Agricultural Practices as recommended by VC leaders like CP seeds include:

Cultivation time 15th June- 20th July, in irrigated areas in Rajasthan and rain fed areas from 25th June-20th

July. In Rabi, 1st Nov-15th Nov in Rajasthan in irrigated areas and in rainfed areas from 1st Nov-30th Nov.

This is right time in terms of agro climatic conditions.

Fertilisers application period in Kharif include DAP, Potash, Zinc, with dosage of 50,50 and 10kgs

respectively.

After 25-30 days of cultivation urea is applied at 50kgs/acre, DAP @25 kgs and potash MOP @10

kgs/acre.

After 45-50 days of sowing urea may be applied at 50kgs/acre, this is the last stage before flowering.

Seed rate/acre needs to be 8-10 kgs/acre.

Distance between planted rows needs to be ideally be 2ft and between plants almost 1ft.



2.12. Harvesting

Maize is predominantly harvested mechanically, although exceptions do occur in the case of hand harvesting.

Hand harvesting: The entire plant can be cut and placed into stacks (stock) while still green. Once it is dry, the

ears can be picked and threshed, or the entire plant with the ear can be utilised as maize hay. Alternatively, the

plants can be left in the field to dry and the ears harvested.

2.13. Pre harvest constraints of Farmers

Farmer face following problems: Pesticides are very costly, there is lot of spurious product in the market, and

pesticides do not provide complete control.



Chapter 3: Post Harvest Management

3.1. Post-Harvest Losses, Harvesting Care and Post-Harvest Equipment

Post-Harvest Losses

It is estimated that about 2.45 percent of maize is lost at farmers’ level during harvesting, threshing, winnowing,

transportation and storage. Estimated post-harvest losses as per report on maize given at Agmarknet at producers’

level are given in table below: Table 15: Loss of maize post-harvest

Sr. No. Operation Loss % to total

1 Transport from field to threshing floor 0.58

2 Threshing 0.8

3 Winnowing 0.53

4 Transport from threshing floor to storage 0.19

5 Storage at farmers level 0.35

Total 2.45

Source: Marketable Surplus and Post-Harvest Losses of Maize in India, 2002, Directorate of Marketing & Inspection, Nagpur To minimise post-harvest losses, the following measures should be followed:

Maize cultivated for obtaining kernels (grains) should be harvested when the kernels are matured with

25 to 30 percent moisture.

Use proper method of harvesting.

Dry the cobs immediately before threshing and kernels should be dried sufficiently before storage.

Losses in threshing and winnowing should be avoided by using proper machineries.

Follow sanitation during drying, packing and handling to avoid contamination of kernels and protect

from insects, rodents and birds etc.

Use proper techniques for cleaning and further processing.

Adopt grading practices for proper evaluation and obtaining better price.

Use strong, and free from infestation packaging material for storage and transport.

Use proper scientific technique in storage for maintaining optimum moisture content.

Use pest control measures (fumigation) before storage.

Provide aeration to stored grain and stir grain bulk occasionally.



Use proper techniques while handling (loading & unloading), good and fast transport to avoid losses

during transport12

Harvesting Care Maturity period for harvesting of maize is as below: Table 16: Maturity period for harvesting of maize

Varieties Days after Planting Where grown/suitable areas

Long duration 100-110 days or more Areas where irrigation for early sowing is available or rainy season starts early.

Medium duration 85-95 days Where late sowing is done and irrigation is available.

Short duration 80-85 days Where sufficient rain fall is available or grown as intercropping.

Very short duration 75-80 days River side areas where sudden floods are caused.

Source: Kharif Maize (Kharif Makka) by Directorate of Maize Research, I.C.A.R. New Delhi.

As per Agmarknet recommendations, the following mentioned harvesting care should be taken;

Maize crop grown for grain should be harvested when it attains full maturity i.e. when husk has turned

yellow and grains are hard enough having 25 to 30 percent moisture.

Do not wait for stalks and leaves to dry because they remain green in most of the hybrid and composite

varieties.

The cobs of maize are to be cut at the stalk.

Remove the hair and husk from the cobs and then dry them in sun for seven to eight days.

Protect the Maize cobs from rain and excessive dew by covering.

Avoid pest infestation during drying and threshing etc.

Kernels should be separated by beating the cobs or by Maize shellers.

Avoid losses during shelling and winnowing

Dry the maize kernels sufficiently prior to packing and sorting

Pack the maize kernels in jute bag free from infestation and obnoxious smell

Post-Harvest Equipment To obtain good quality of maize grains, it is necessary to harvest the crop at proper time i.e. after attaining the full

maturity. In regions where the maize is cultivated on small scale, harvesting is done by manual labourers. However,

on large scale threshing and winnowing is done by machines.

Suitable machinery viz. Harvesters, threshers, winnowers etc. should be used for harvesting, threshing and

winnowing.

CIAE Multi-crop Thresher: It consists of spike tooth cylinder, aspirator type blower and sieve shaker. Two top

covers, three concaves, three sieves, variable cylinder speed (7-21m/s) are provided for threshing. It saves 26-39

percent labour and 22 percent on cost of operation compared to threshing by single crop thresher. It’s threshing

12 http://agmarknet.nic.in/profile-maize.pdf



capacity is 1635 kg/hour.

Semi-Axial Flow Multi Crop Thresher: It consists of spike-tooth cylinder, aspirator type blower and sieve

shaker. It works on axial flow principle but crop flow is restricted by inserting a semi-circular plate between

cylinder and thrower. It saves 27-40 percent labour and operating time and 19 percent on cost of operation

compared to conventional spike tooth thresher. It’s output capacity is 1350 kg/hour.

CIAE High Capacity Multi-crop Thresher: It consists of a spike tooth cylinder, three asprirator blowers,

cleaning sieves and automatic feeding and bagging systems. The thresher is provided with accessories such as extra

pulleys, concaves and sieves for threshing different crops. It saves 50 percent labour and operating time and 54

percent cost of operation compared to conventional spike tooth thresher. It’s output capacity is 2890 kg/hour.

Tubular Maize Sheller: It is a manual hand operated sheller suitable for shelling maize from dehusked cobs.

Shelling is done by holding the Sheller in left hand and gradually inserting the cob in to the sheller by right hand

with little forward and backward twist.

Packaging: Good packaging is necessary for easy handling, transportation and storage. The maize corn is

transported from field (threshing floor) to the market and storage godown in gunny bags. Good quality gunny bags

either new or second hand with proper treatment are necessary to avoid spoilage and to protect the corn from

moisture and insect attack etc.

For good packaging, the packages must possess following qualities:

It must protect corn well.

It should be strong enough to sustain weight while handling and transportation.

It must be convenient to handle.

The size of the package should be restricted in such a way that it should be easy to lift and handle by a

single person.

It should be attractive, clean and free from any infestation etc.

It should be marked with the description of the content viz. Commodity, name and address of packer,

quantity, quality (Grade), variety and date of packing etc.

Method of packing:

The graded corn should be packed in new, clean, sound and dry jute bags, cloth bags, polywoven bags,

polyethylene, polypropylene, high molecular high density polyethylene, paper packages or in other food

grade plastic/packaging materials.

The packages should be free from insect infestation, fungus contamination, deterious substances and

obnoxious smell.

Each package should contain maize of one grade only.

Each package should be securely closed and suitably sealed.

Maize need be packed in quantities as specified under the provisions of the standards of Weights and

Measures (Packaged Commodities) Rules, 1977 as amended from time to time.

Suitable number of consumer packs containing graded material of the same lot may be packed in master

container.



Availability of packaging material: Maize/corn is packed in the bags of following material:

1. Jute bags

2. H.D.P.E./P.P. Bags

3. Polythene impregnated jute bags

4. Poly pouches for corn for popcorn and processed baby corn

5. Cloth bags for seed

Jute bags vs. H.D.P.E. bags: Jute is bio degradable material, while synthetic is not environment friendly. The

disposal of unserviceable jute bags is easy compared to synthetic bags. Summary of comparative properties of

HDPE (High Density Poly Ethylene) and jute bags is given as under:

Table 17: Properties of Jute and HPDE bags

Sr. No Properties HDPE Bags Jute Bags

1 Seam strength Poor Strong

2 Surface texture Smooth Rough

3 Operational convenience Poor (With accident risk) Good

4 Capacity utilization Poor Excellent

5 Stack stability Poor Excellent

6 Resistance to hooking Poor Fair

7 Drop test performance Poor Good

8 End use performance (w.r.t. bursting, damage, spillage, replacement)

Poor Good

9 Grain preservation efficiency Poor Excellent

Source: Indian Institute of Packaging, India.

Economics of Packaging:

Usually, the cost a HDPE bags may be around 50-60 percent of the cost of jute bags. In maize, usually B-Twill

jute bags are used. The initial cost of packaging varies according to the type of material used for making bags.

Maize is stored in HDPE bags for six months, whereas in jute bags, for 3 months. Thus, the economics of

packaging depends not only on the type of packaging material but also the duration for which the maize is likely to

be stored.

3.2. Grade Specification & Grading at Producer Level

The following section gives details of grade specifications and grading at producer level.

Grading Grading is the process of sorting of produce according to the grades or classes. In case of maize, the quality factors

such as moisture content, foreign matter, other food grains, admixture of other varieties, damaged grains,

immature grains, weevilled and shrivelled grains are considered while grading. Farmers, in order to improve the

quality of produce and obtain better price, clean the maize with sieves to remove the dust, broken grains and small

size shrivelled grains etc Buyers offer the price on the basis of visual inspection of the lot or available sample

considering above mentioned quality factors.



Grade specifications Specifications under AGMARK: Under the Agricultural Produce (Grading and Marking) Act 1937, the national

standards for maize are notified, considering the quality factors like:

a) Moisture, b) foreign matter, c) other food grains, d) admixture of different varieties, e) damaged grains,

f) Immature grains, and g) weevilled and shrivelled grains.

General characteristics:

Maize shall:

a) be the dried mature grains of Zea mays L.;

b) be sweet, hard, clean, wholesome, uniform in size, shape, colour and in sound merchantable condition;

c) be free from added colouring matter, moulds, weevils, obnoxious substances, discolouration, poisonous

seeds and all other impurities except to the extent indicated in the schedule;

d) In maize, uric acid and aflatoxin shall not exceed 100 milligrams and 30 micrograms per kilogram

respectively;

e) be free from rodent hair and excreta;

f) Comply with the restrictions in regard to pesticides/insecticides residue (Rule 65), poisonous metals (Rule

57), naturally occurring toxic substances (Rule 57-B) and other provisions prescribed under the

Prevention of Food Adulteration Rules, 1955 and as amended from time to time.

Note: In foreign matter, the impurities of animal origin shall not be more than 0.10 per cent by weight.

Special characteristics Table 18: Tolerance limits under grading

Grade designation

Maximum limits of tolerance (% by weight)

Moisture

Foreign matter Other Edible grains

Admixture of different varieties

Damaged grains

Immature and Shivelled Grains

Weevilled Grains (% by wt.)

Organic Inorganic

Grade I 12 0.1 Nil 0.5 5 1 2 2

Grade II 12 0.25 0.1 1 10 2 4 4

Grade III 14 0.5 0.25 2 15 3 6 6

Grade IV 14 0.75 0.25 3 15 4 6 8

Codex Standards

CODEX ALIMENTARIUS COMMISSION (CAC): Codex Alimentarius Commission (CAC) implements

joint FAO/WHO Food Standards Programme. The purpose of the CAC programme is to protect the health of

consumers and ensure fair practices in the food trade. The CAC is a collection of internationally adopted food

standards presented in a uniform manner. Sanitary and Phyto-Sanitary Agreement and Technical Barriers to Trade

Agreement of World Trade Organization recognise standards framed by CAC with respect to safety and quality

aspects of food items. Thus for international trade, standards framed by CAC are recognized.

Grading at the producer’s level and under Agmark The scheme, grading at producer’s level was introduced in 1962-63 by the Directorate of Marketing & Inspection

(DMI). The main objective of the scheme is to bring quality awareness among the producers and offer quality

produce for sale. Under the scheme, the produce is subjected to simple tests and assigned a grade before sale. The



programme is being implemented by the State Governments through the Agricultural Produce Markets.

Table 19: Grading at producers level, state wise quantity graded and estimated value during 2014-2015

State Quantity graded (In tonnes) Value (Rs. In Lakhs) No. of grading units

Rajasthan 1738 97 38

Tamil Nadu 12468 718 272

Uttar Pradesh 76476 3546 161

Source: D.M.I., Faridabad (Agmark grading Statistics 2014-2015)

Grading under Agmark Grading under Agmark is carried out by the Directorate of Marketing & Inspection in accordance with the grade

specifications notified by the Govt. of India under the provisions of Agricultural Produce (Grading & Marking )

Act, 1937 and rules made there under. The Directorate of Marketing & Inspection has prescribed the grade

standards for Maize (Commercial Grades).

3.3. Major Storage Diseases and Pest and their Control Measure

Requirements for safe and scientific storage

Following requirements should be considered for safe and scientific storage of maize:

Selection of site: The storage structure should be located on a raised well drained site. It should be easily

accessible. The site should be free from water logging, dampness, excessive heat, insects, rodents, termites

etc.

Selection of storage structure: The storage structure should be selected according to the quantity of

maize or maize products to be stored and the period of storage. In Godowns, sufficient space should be

provided between two stacks, between stacks and walls, so that proper aeration can be available.

Cleaning and fumigation: Before, storage of maize, godown/structure should be properly cleaned and

fumigated. There should be no cracks, holes or crevices in the structure.

Drying and cleaning grains: Before storage maize grains should be properly dried and cleaned to avoid

quality deterioration.

Cleaning of bags: Always use a new gunny bag. In case of second hand gunny bags, it should be

disinfested by boiling in one percent Malathion Solution for 3 to 4 minutes and fully dried.

Separate storage of new and old stock: To prevent contamination from the old stock to new stock, it

is advised to store them separately.

Use of dunnage: Bag of maize should be kept on wooden crates or bamboo mats along with cover of

polythene sheet to avoid absorption of moisture from the floor.

Proper aeration: Proper aeration should be provided during dry and clean weather but care should be

taken to avoid aeration in rainy season to protect the stock from moisture.

Cleaning of vehicles: The vehicles used for transportation of maize should be cleaned by phenyl to

avoid infestation.

Regular inspection: To maintain proper health and hygiene of stock regular inspection of stored maize

is necessary. Periodic fumigation should be carried out in the case of long storage.



Major storage pests and their control measures

Various insects and pests during storage damage maize. Losses due to damage are both qualitative and

quantitative. It also damages viability of seed. Some of the maize pests often start infestation in the field several

weeks before the crop is harvested. The ability of the insects to fly long distances between fields and maize stores

can quickly spread the infestation.

Nature of Infestation: The eggs are laid either on the surface of grain kernel (normally on physically damaged

part of the grain) or inside a tiny hole partly bored on the kernel by the parent. The eggs hatch into larvae which

voraciously eat their way within the grain and are responsible for major damage. The larvae gradually transform in

to pupae, a dormant non feeding stage. These later hatch in to adults which eat their way out of the grain kernel

and (if beetles) immediately start aggressive feeding on and further destruction of the grain. The Prostephanus

truncatus or larger grain borer (LGB) cause losses in the range of 10 to 35 percent in 5-6 month in house hold

storage and up to 60 percent losses over 9 month storage period.

Nature of damage:

• Bored holes in the grain and disappearance of a large portion of the endosperm.

• Injury to the germ reducing the nutritive value and loss of viability of seed.

• Heating, condensation and moulding of the grain are causing reduction in nutritive value and risk to

formation of toxic substances as aflatoxin.

• Contamination of stored grain with excrement and frass.

• Infested grain, especially by Sitotroga cerealella, may have a sickening smell and taste that makes grain un-

palatable.

Causes of infestation:

• Careless disposal of all crops and residue swept from infested store.

• Poorly managed store structure.

• Leaving fits and pieces of infested cob-maize in un-ploughed fields, or lying all around the farm yard.

Factors affecting severity of damage

The severity of infestation depends on following factors:

• Moisture in grain at the time of storage.

• Relative humidity in atmosphere.

• Temperature inside the store/container.

• Type of storage structure used.

• Storage period.

• Processing method adopted.

• Sanitation

• Fumigation frequency etc.

Sanitary & Phyto-Sanitary (SPS) requirements:

The agreement on Sanitary and Phyto-Sanitary (SPS) measures is a part of the GATT Agreement, 1994, for export

and import trade. The aim of the agreement is to prevent the risk of introduction of new pests and diseases in new

regions i. e. importing countries. The main purpose of the agreement is to protect human health, animal health,

and Phyto-Sanitary situation of all member countries and protect the members from arbitrary or unjustifiable



discrimination due to different Sanitary and Phyto-Sanitary Standards.

The SPS agreement applies to all Sanitary and Phyto-sanitary measures, which may directly or indirectly, affect

international trade. Sanitary measures deal with human or animal health, and Phyto-Sanitary measures are related

to plant health. SPS measures are applied in four situations for the protection of human, animal or plant health:

Name of Pest Figure of Pest Damage Control Measures

1. Maize Weevil

Sitophilus

Zeamais

Larvae develop inside

kernel and feed on

starchy interior. Adults

hatch and eat their way

out and continue to feed

voraciously on the

grain.

Two types of

treatments are followed

to control infestation.

A) Prophylactic

Treatment

Use following

insecticides to prevent

infestation in godown

and stock of maize.

1. Malathion

(50 percent E.C.)

Mix 1 litre in 100 litre of

water. Use 3 litre

prepared solution per

100 square metre area.

1. Deltamethrin

(2.5%WP)

Mix 1 kg. In 25 litre of

water. Use 3 litre

prepared solution per

100 square metre area.

Spray on gunny bags

after 3 months interval.

2. Larger Grain

Borer

Rhyzopertha

dominica

Larvae enter grain and

feed on starchy interior.

Adults bore grain freely

and voraciously eat and

may destroy entire

grain kernels.

3. Saw Toothed

Grain Beetle

Oryzaephilus

Surinamensis

(Linn)

Larvae and adults feed

on broken and

damaged grain.

4. Confused Flour

Beetle

Tribolium

Confusum (J.

duv.)

Larvae and adults feed

on broken and

damaged grain.



5. Angoumois

Grain Moth

Sitotroga

Cerealella (oily)

Primary pest, attacks

grain in field. Most

damage occurs in

storage only through

larvae.

B) Curative

Treatment

Use following fumigation

insecticide to control

infested stock/godown of

maize in airtight

condition.

1. Aluminium

Phosphide:

For stack fumigation use

3 tablets/tonne and put

polythene cover on

infected stock. For

godown fumigation, use

120 to 140 tablets per

100 cubic metre area

and keep godown

structure airtight and

closed for 7 days.

6. Tropical Ware

House Moth

Ephestia

Cautella (walk)

Primary pest, attacks

grain in field. Most

damage occurs in

storage only through

larvae.

7. Rodents Rodents eat whole

grains, broken grains,

flour etc. They spill

more grains than they

eat. Rodents also

contaminate maize

grains with hair, urine

and faeces, which

cause diseases like

cholera, food poisoning,

ringworm, rabies etc.

They also damage the

storage structures and

other accessories of

store like wire and

cable etc.

Rat Cage:

Different types of rat

cages are available in

the market. Rates

caught in cage can be

killed by dipping in

water.

Poison Baits:

Anti-coagulant pesticide

like zinc phosphate is

mixed with bread or any

other food stuff used as

bait. Baits are kept for a

week.

Rat Burrow

Fumigation:

Tablets of Aluminum

phosphate are put in

each hole and burrow

and holes are blocked

by mud mixture to make

airtight.

Risks arising from the entry, establishment or spread of pests, diseases, disease-carrying organisms or

disease causing organisms.

Risks coming from additives, contaminants, toning or disease-causing organisms in foods, beverages or

feed stuffs.



Risks arising from diseases carried by animals, plants or products thereof, or from the entry,

establishment, or spread of pests.

Prevention or limitation of damage caused by the entry, establishment or spread of pests.

The SPS standards commonly applied by Governments, which affect imports are:

Import ban (Total/partial) is generally applied when there is a significant rate of risk about a hazard.

Technical specifications (Process standards/Technical standards) are most widely applied measures and permit

import subject to compliance with pre-determined specifications.

Information requirements (Labeling requirements/Control on voluntary claims) permit imports provided they

are appropriately labelled.

Procedure for issue of SPS certificate for export:

In order to make plant materials free from quarantine and other injurious pests to conform with the prevailing

phyto-sanitary regulations of the importing country, the exporter needs to give a suitable

disinfestation/disinfection treatment, without affecting the viability for sowing / edibility of the plants/seeds.

For plant materials (seed, meal, extraction, etc.) meant for export, Government of India, has authorised some

Private Pest Control Operators (PCO), who have the expertise, men and materials for treating the export

agricultural cargo / produce. The exporter has to apply to the officer-In-charge (Plant Protection and Quarantine

Authority, Department of Agriculture and Cooperation) for Phyto-Sanitary Certificate (PSC) in prescribed

application form at least 7 to 10 days in advance of the export. Before submitting the application for issue of

PSC, it should be ensured that the cargo is treated properly by the licensed PCO’s.



Chapter 4: Cost Of Production and Net value Accruals to Producers

A typical farmer in the region with about 3 ha land holding. About 1.2 ha is deployed to Maize production. The

gross yield per acre is 24 quintal per ha. The market rate of the sale is about Rs. 13000 per tons or Rs. 13 kg or Rs.

31,200 per ha. The cost of cultivation, as per the given illustration, is about Rs. 25538 per ha. Hence, the net

realization (from sales of grains) per ha is about Rs. 13050 per ha including the opportunity cost of fodder as well.

Out of this about Rs. 2500 is cost of land preparation, seed cost is about Rs. 2500, fertilizer and pesticide cost is

about Rs. 4600 & 4063 per ha respectively, weeding related (labour cost) is about Rs. 3,750 and harvesting cost is

about Rs. 6,250. Transportation cost to mandi is about Rs. 12250 per ha and other cost such as hamali is about Rs.

245- all totalling is around Rs. 27008 per ha. Also there is no drying/storage facility for farmers. Farmers in the

region are procuring seeds, fertilizers and pesticides from local shops. Farmer is selling his produce in Mandi @ of

Rs 1,300 per quintal.

Table 20: Cost of Production13

Activity Unit Quantity per

Bigha Unit cost

Total cost (Rs/bigha)

Total cost (Rs/acre)

Total cost (Rs/hectare)

Land Preparation

Ploughing No. 1 400 Rs/bigha 400 1000 2500

Sub-total 400 400 1000 2500

Seed 5 400 Rs/bigha 400 1000 2500

Sub-total 400 1000 2500

Fertilizer

Urea Kg 50 300 Rs/50 Kg 300 750 1875

DAP Kg 20 1090 Rs/50 Kg 436 1090 2725

Sub-total 2410 736 1840 4600

Weeding

Labour No. 4 150 Rs/person 600 1500 3750

13 Costs assumed are as per estimates given by respondents. The costs may vary in different zones, also based on cultivation practices of farmer. This particularly includes quality and type of inputs used.



Activity Unit Quantity per

Bigha Unit cost

Total cost (Rs/bigha)

Total cost (Rs/acre)

Total cost (Rs/hectare)

Sub-total 350 600 1500 3750

Pesticide

Labour No. 3 150 Rs/person 450 1125 2813

Pesticide No. 1 200 Rs. 200 500 1250

Sub-total 350 650 1625 4063

Irrigation

Water-canal No. 2 150 Rs. 300 750 1875

Sub-total 27150 300 750 1875

Harvesting

Labours No. 1 1000 Rs. 1000 2500 6250

Sub-total 1000 1000 2500 6250

Total 4,086

10,215

25,538

Productivity 24.5 q/ha

PH Loss-harvest (2%), storage (2%), transportation (1%) % 5.0% 1.225

q/ha

Net Productivity 23.28 q/ha

Mandi price 1300 Rs/q

Gross Profit

Rs/q 30258

Transportation to mandi 50

Rs/q

1,225

Hamali Charges 10 Rs/q

245

Net Profit- produce

3,250

Output- Maize fodder

2:01 49

Opportunity cost of maize fodder

200 Rs/q 9800

Net Profit- Produce+ Fodder

13,050

In nut shell, gross yield of maize is observed to be in range of 24-25 quintals per ha. Considering the market rate

of the seeds is about Rs. 13000 per ton or Rs. 13 per kg, gross realization could be in range of Rs. 30258 per ha.

The cost of cultivation, as per above illustration, is about Rs. 25538 per ha. Hence, the net realization (from sales

of grains) per ha is about Rs. 13050 per ha (including the opportunity cost of fodder at the rate of Rs 2/kg).

However, critically, the wastage during the threshing, storage and transport process could be in the range of about

5%.



Chapter 5: Supply Chain of Commodity

5.1. Seasonal Availability and Price Pattern

5.1.1. Seasonal Availability

To analyse the arrival pattern of maize during different months of the year and their impact on price, seasonal

indices were computed adopting 12 months moving averages. The highest seasonal index (305.61) of arrivals of

maize was observed during the month of sowing in the month of June-July which marks the commencement of

monsoon season in many parts of Rajasthan. It comes to harvest during September and/or October. It was

apparent that the period from October to December has accounted maximum arrivals (more than 100 indices) in

the selected markets. The lower values of indices were observed during the period from January to September

indicated lean period in Nimbaheda markets. Thus, the majority of the produce was sold soon after the harvest

probably for want of cash or lack of storage facilities. However, farmers who are financially sound can store for

longer time to look forward for advantageous period and higher prices. The results are in line with Nadaf

(2002).The price movement also demonstrates significant seasonal fluctuations in the selected markets. A general

finding is that the prices are low when the arrivals were large and the prices are high when the arrivals were low.

The highest values of price indices were observed during lean arrivals months of June to August and in remaining

month’s price were moderate in Nimbaheda markets of Rajasthan.

The values of highest price indices for maize were found in the month of July (108.55) and the lowest price index

was found during October (91.66) in Nimbahera market. The price indices of maize were lower than 100 for only

four months, i.e., September to December. Thus, maize crop can be grown under rainfed and irrigated conditions.

Under rainfed conditions, the crop arrivals, stock of the products in market and the demand affects the price to a

great extent. Keeping such variations in demand in view, the growers can obtain better prices by matching supply

to the market requirements during the period of high seasonal price index. Table 21: Seasonal indices of monthly arrivals and prices of maize in Nimbahera market of Rajasthan (2002 to 2013)

Sr. No. Month Arrivals Price

1 January 158.42 100.3

2 February 69.3 100.4

3 March 35.58 100.5

4 April 27.05 101.04

5 May 15.87 100.75

6 June 18 102.97

7 July 9.73 108.55

8 August 5.14 106.79

9 September 10.8 95.26



10 October 247.88 91.66

11 November 296.62 94.51

12 December 305.61 97.27

Total 1200 1200

Price Pattern of Maize The maize prices follow a seasonal pattern. From the seasonal indices graph presented below we can infer that

maize prices witness a fall during post-harvest period on arrival pressure in the market. i. e. particularly in the

month of September and October. As the arrivals starts, the sliding prices show recovery from post-harvest

decline during April to June months. Export demand also supports the rising price trend in physical market. Figure 8: Special Indices of Maize

Source: APMC Market

During month of march maize prices touched peak of Rs. 880 levels per quintal on increased export demand

from Australia, Nepal, Bangladesh and EU-27. To meet the rising demand from global poultry feed industry and

Ethanol production sector domestic private agencies heavily purchased in the physical market. In addition, cooling

off of Bird Flu scare in West Bengal gave underlying support to rising maize prices in recent past. After touching

historic high of 880 levels, prices took steep correction towards 780 levels as the arrival of Rabi harvested

produced started hitting the market.

5.1.2. Market Arrivals & Prices in Major Markets of Rajasthan

The various agencies engaged in the assembling of Maize are as below:

Producers

Village Merchants

Itinerant merchants

Wholesale merchants and commission agents

Flour mill agents

Co-operative Organizations

Govt. Organisations (F.C.I., State Govt. etc.)



Rajasthan, Uttar Pradesh, Madhya Pradesh, Bihar, Karnataka, Gujarat, Andhra Pradesh, Jammu & Kashmir,

Maharashtra, Himachal Pradesh and Punjab are the important states for maize production and arrivals in markets.

Major assembling markets: Table 22: Major assembling markets for Maize in important producing states

Sr. No. Name of State Name of Markets

1. Andhra Pradesh Karim Nagar,Jammi Kunta, Warangal, Mahabubabad,

Nizamabad, Armoor, Jogipet, Zaheerabad, Adilabad,Chennur,

Kamareddy, Jagtial, Siddipet, Khammam.

2. Arunachal Naharlagun, Nomsang, Bomdila, Seijusa, Along, Alikabali,

Pradesh Neba,Chanllong, Jawnang, Tawang, Rupa.

3. Assam Dankomokan, Bokajan, Howarhghat, Halflong.

4. Bihar Patna, Bihta, Barh, Chapra, Siwan,Gopalganj, Muzaffarpur,

Motihari, Betiah, Hazipur, Samastipur, Begusarai, Khagaria,

Gulabbagh, Munger, Hazaribagh, Dumka, Giridih.

5. Gujarat Godhra, Sahera, Lunawada, Halol, Delol, Meghraj, Malpur, Bhiladia, Prantig,

Bardoli, Dhansura, Bayad, Modasa, Idar, Talod, Himatnagar, Khedbrahma, Vijainagar,

Dahod,Limkheda, Palanpur, Anand Borsad,Khambhat, Bharuch, Rajpipla, Hansot,

Bhavnagar, Mahuva, Zalod,Santrampur, Vadodara

6. Haryana Ambala city, Narayangarh, Shahazadpur, Karnal, Hisar, Panipath, Sirsa, Rohtak,

Gurgoan,

7. Karnataka Bangalore, Bellary, Chitradurga, Jamkhandi, Hospet, Gangavati,

Davangere, Channagiri, Raichur, Honnali, Naragunda, Kottur, Koppal ,Shimoga, Shikari

pura, Periya patana, Kollegal, Gokak, Dhanwar, Hubli, Haveri Hirekerur, Ranibennur,

Hanagal. Nandaha Honnavar,Chintamani, Kolar, Chikabellapir, Bangarpet, Chelekere,

Hosadurga, Tumkur, Madhugiri, Bhadravati, Sagar, Bidar, Hangal, Annagiri, Gadag,

Rani benur, Belgaum Mangalore, Mysore, Poligal, Yadgir, Gulbarga, Mandya,

Arsikere,Hollenarsipur, Hollalaur, Tarikere, Kushtagi, Bhagalkot, Badami.

8. Madhya Pradesh Ujjain, Mandsaur, Neemuch, Shahdol, Guna,

9. Maharashtra Sangli, Jallana, Satara, Nadurbar, Akluj, Chalisgaon, Malegaon,

Dondaicha, Indapur, Pachora, Latur, Chikhali, Sillod, Sangola,

Pandharpur, Bhokardan, Baramati, Deulgaon Raja.

10. Manipur Old Chura Chandpur, New Chura Chandpur, Ukhrul, Mao,

Senapati, Kokching, Imphal, Khawai Bazar, Lamlong, Jiriban.

11. Meghalaya Nonpah, Umsing, Pynurala, Burnihal, Kyrshai, Moheshkhola,

Garobadha,

12. Mizoram Darlawn, Khawzowl.

13. Nagaland Mendiziphema, Pftsero, Lunhebato, Tsutsang, New Camp

(Aliba), Impur Junction, Kubal, Chare, Mon, Nagini mora.

14. Orissa Anugul, Bhawanipatna, Kesinga,Phulbani,Koraput, Baripada.

15. Punjab Hoshiarpur, Bhagtabhaika, Bhucho, Kapurthala,Talwandi Sahib, Garah Shaukar,

Nawanshehal, Bangra, Bala chauri,Roper, Kurali, Kharar, Monnda, Anandpur

Sahib, Sirhind, Bassi Pathenna, Jallandar City, Jallandar Cantt. Adampur, Shahikot,

Bhogpur, Ludhiana,

Samrala, Machhiwara, Khanna, Jagraon, Sohneqal, Mullanpur, Raikot,

Doraha,Dhakola, Bhawanigarh, Chamkor Sahib, Cheema, Malerkotla, Mohalkala,

Sangrur, Sulargharat

16. Rajasthan Kota, Alwar, Jaipur, Gangapur, Hanumangarh, Jodhpur, Bara, Bundi, Banswara,

Dungarpur, Udaipur.



Sr. No. Name of State Name of Markets

17. Tamilnadu Kottai Theni, Koil Patti, Coimbatore, Dindigul.

18. Tripura Thalcherra, Tarakpur, Ramnagar, Bishalpur, Devipur,Kalmcharra, Bagmara, Mohan

Bhog, Kotlamara, Golaghati, Maharaj Ganj Bazar, Dharma Nagar,

19. Uttar Pradesh Chharra, Mainpuri, Kasganj, Uttari Pura, Farrukhabad, Karimganj, Mohamdabad,

Kannauj, Chhibramau, Bangarmau, Madhoganj, Bahriach.

20. West Bengal Siliguri, Kaling pong, Mallaguri, Alipurduar, English Bazar, Samsi, Kaliganj, Jangipur,

Balarampur,Midnapore Sadar.

Source: Post Harvest Profile of Maize: http://agmarknet.nic.in/profile-maize.pdf

Arrivals of Maize in Rajasthan

The marketing period of maize is generally from October to December for Kharif maize and from January to

May for Rabi crop. It was reported that during 2016-17, total arrivals of maize in markets of Karnataka was

1,654,228 tonnes followed by Madhya Pradesh 914,801.77 tonnes, Maharashtra 619,927 tonnes, in Uttar

Pradesh 496,409.25 tonnes and in Telangana 336391.68 tonnes in markets. Arrival apparently peak in the

regions like Chittorgarh and Kota.

Table 23: Arrivals in Rajasthan (Maize) from 01-Apr-2016 to 24-Mar-2017

District Name Market Name Arrivals (Tonnes)

Ajmer Ajmer (Grain) 288.4

Ajmer Beawar 936.1

Ajmer Bijay Nagar 1010.3

Ajmer Kekri 294.2

Ajmer Madanganj Kishanganj 549.92

Ajmer Vijay Nagar(Gulabpura) 418

Alwar Alwar 489.5

Baran Anta 33

Baran Atru 738.5

Baran Atru(Kawai Salpura) 772.4

Baran Baran 2244.3

Baran Chhabra 6978

Baran Chhabra(Chhipabadod) 290

Bhilwara Bhilwara 5801.5

Bhilwara Bijolia 3716.8

Bhilwara Gangapur 8779

Bhilwara Mandalgarh 1000.9

Bundi Bundi 5132.6

Bundi DEI(Bundi) 1

Bundi Keshoraipatan 141.8



Bundi Sumerganj 3.8

Chittorgarh Badrisadri 315.1

Chittorgarh Begu 7490

Chittorgarh Chittorgarh 1

Chittorgarh Fatehnagar 43102

Chittorgarh Kapasan 122

Chittorgarh Nimbahera 17838.7

Chittorgarh Pratapgarh 1796.9

Dausa Bandikui 71.4

Dausa Dausa 87.9

Dausa Lalsot 0.2

Dholpur Dholpur 420.9

Ganganagar Sriganganagar 73.3

Hanumangarh Pilli Banga 1.5

Jaipur Chaksu 32.3

Jaipur Jaipur (Grain) 480.8

Jaipur Jaipur(Grain)(Chandpole) 3415.3

Jaipur Kishangarh Renwal 13

Jhalawar Aklera 6511.5

Jhalawar Bhawani Mandi 1914.4

Jhalawar Bhawani Mandi(Choumehla) 508.8

Jhalawar Bhawani Mandi(Raipur) 613.6

Jhalawar Jhalarapatan 4210.3

Jhalawar Khanpur 902.82

Jodhpur Jodhpur (Grain)(Mandor) 365.5

Kota Chechat 41.1

Kota Kota 9289.6

Kota Ramaganj Mandi 10012.6

Kota Ramgang Mandi(Bapawarkala) 0.2

Pali Pali 22

Pali Rani 11.5

Pali Sumerpur 279.1

Rajasamand Rajasamand 389.5

Sirohi Abu Road 31.4

Swai Madhopur Sawai Madhopur 13.2

Tonk Deoli 3427.6

Tonk Malpura 439.65

Tonk Malpura(Todaraisingh) 33.7

Tonk Tonk 103.8



Tonk Uniyara 2

Udaipur Udaipur 3011.6

Total 157,017.79

Source: Market Arrivals; (http://agmarknet.gov.in/SearchCmmMkt.aspx

Inter State Distribution

Maize is dispatched from major producing states to the consuming states. The major producing states from where

the dispatches made are Andhra Pradesh, Gujarat, Karnataka, Madhya Pradesh, Orissa and Uttar Pradesh. The

consuming states where the maize is arrived from other states are Maharashtra, West Bengal, Tamil Nadu,

Rajasthan, Delhi, Bihar, Chhattisgarh, Haryana and Assam. Maize is brought from major producing states to the

consuming states for industrial use, processing and local consumption. The interstate movement also takes place

due to variation in production and prices

Table 24: Indian distribution and dispatch of Maize

Sr. No. State Dispatches to states apart from local markets

1 Andhra Pradesh Gujarat, Maharashtra, West Bengal and Tamil Nadu.

2 Gujarat Rajasthan

3 Karnataka Delhi, Tamil Nadu, Gujarat, Maharashtra, West Bengal

4 Madhya Pradesh Maharashtra, Gujarat, Karnataka.

5 Orissa West Bengal, Bihar, Andhra Pradesh, Madhya Pradesh, Orissa, Chhattisgarh.

6 Uttar Pradesh Delhi, Haryana, Rajasthan, West Bengal, Punjab & Assam

5.2. Existing Marketing Channels

Pre-Intervention Value Chain: Maize

The pre-intervention value chain for maize involves three production-distribution or activity-marketing channels,

one related to yellow maize and the other related to white maize. The yellow maize largely targets the animal feed

industry while white maize is for the food (Starch, pop-corn, sweet corn etc.) segment. Presently, village traders

and the mandi largely facilitate aggregation of produce. Producers suffer from want of storage, grading and sorting

facilities and value accruals are limited.

After the harvesting process, maize requires drying for 10-15 days to reduce the moisture levels to 13%-14%. The

higher the moisture level the lower the price of the produce. In Rajasthan, currently a large part of maize

production is sun dried, where the drying is not uniform. Also, farmers mostly sell Kharif maize (June-September)

with high moisture just after harvesting so as to use the field for the Rabi crop. As a result, due to improper drying

practice, the grain quality reduces.

Typically, the gross yield per acre is 9.6 quintal per acre. The market rate of the sale is about Rs. 13000 per tons or

Rs. 13 kg or Rs. 31,200 per ha. The cost of cultivation is about Rs. 26,320 per ha. Net realization per acre is about

Rs. 3250 per ha excluding the opportunity cost of selling fodder which is about Rs 9800 per ha. NAFED also

supplies to retailers in Channel 1 and Channel 2.

Post-harvest losses occur at various stages of the existing value chain of gram starting from post-harvest to mandi

sales and processing. Such losses total up to a significant amount of 5-9% of the actual harvested output. The

major reasons for such losses could be attributed to the poor storage, inefficient transportation and improper



handling of the produce till mandi. At processor level, higher percentage of the losses could be attributed to the

use of obsolete and inefficient technologies and improper storage.



Figure 9: Existing pre intervention Value Chain map of Maize



Holding period for the existing maize value chain is also described in the above given map. It could be observed

that the maize farmer may hold the harvested maize depending upon the availability of storage facility as well as

the prevalent market price of maize in local/ nearby mandis. The farmers of Gudha cluster generally sell their

produce at the Bari mandi itself. Last season, the prices of the maize went as low as Rs 1000 per quintal.

Generally, maize crop is used as cash crop only i.e. sold by farmers as and when they require liquid money. The

grain cannot be held at mandi level for more than 10 days as there is lack of appropriate storage facilities at the

APMC level.

The price spread and values accrued to stakeholders across the chain reflect the profit margins accrued to different

stakeholders. Farmer shares 43% of the consumer’s rupee while the shares of traders, processors, wholesalers and

retailers are about 2%, 9%, 5% and 41% respectively. 55% of the value accruals are accrued to processors,

wholesalers and retailers. Producers’ incomes are apparently dependent on yield as well as their dependency on the

type of end product (eg. Maize flour, corn grit, flakes, etc.). Here in the existing value chain of Maize, the price

build up has been calculated for the important first channel where the target consumers are urban households and

institutional buyers. The product considered is maize flour. The major lacunae for the farmers lie at the trader

level where they don’t get the market rates of their crops.

Institutional Market:

Some institutions have been entrusted with marketing activities of Maize like NAFED. NAFED is the nodal

agency for procuring Maize through providing minimum support prices to the farmers for their produce. The

main institutional marketing channels for Maize are presented as below:

Marketing costs and margins

Marketing costs

Marketing costs are the actual expenses incurred in bringing goods and services from the producer to the

consumers. The marketing costs normally include;

handling charges at local points

assembling charges

transport and storage costs

handling charges by wholesaler and retailer

expenses on secondary services like financing, risk taking and market intelligence, and

Profit margins taken by different agencies.

Marketing margins:

Margin refers to the difference between the price paid and received by a specific marketing agency such as a

single retailer, or by any type of marketing agency, i.e. retailers or wholesalers or by any combination of

marketing agencies in the marketing system as a whole. The total marketing margin includes cost involved in

moving the maize from producer to consumer and profits of various market functionaries.

Producer NAFED Retailer Consumers



Figure 10: Total Marketing Management

Total Marketing

=

Cost involved in moving the Maize

+

Profits of various

from producer to consumer market functionaries

Margin

The absolute value of the total marketing margin varies from market to market, channel to channel and time

to time.

Market fee: It is charged either on the basis of weight or on the basis of the value of the produce. It

is usually collected from the buyers. The market fee differs from state to state. It varies from 0.5

percent to 2.0 percent ad valorem.

Commission: The charges are usually made in cash and vary from market to market.

Taxes: Different taxes are charged in different markets such as toll tax, terminal tax, sales tax, octroi

etc. These taxes liveable on maize differ from market to market in the same state as also from state to

state. These taxes are usually payable by the seller.

Miscellaneous charges: In addition, some other charges are also levied. These include handling,

weighing, loading, unloading, cleaning, charity contribution in cash and kind, etc. These charges may be

payable either by the seller or by the buyers.

Marketing Information and Extension

Marketing information

Marketing Information is essential for producers in planning production and market led production. It is equally

important for other market participants for trading. Recently, Govt. of India has launched Agricultural Marketing

Information Network Scheme through Directorate of Marketing & Inspection (DMI) to bring out improvement

in the present market information scenario by linking all Agricultural produce wholesale markets in the States and

Union Territories.

Marketing extension

Market extension is a vital factor enlightening the farmers about proper marketing and removal of marketing

constraints and improves their awareness in various modern post-harvest measures for efficient and cost effective

marketability.

Benefits of market information and extension as under:

Provides the up-to-date information on the arrivals and prices of agricultural commodities in different

markets.

Guides the producers to take right decision, when, where and how to market their produce.

Educate the producers/traders about the post-harvest management i.e.

Harvesting Care;

Techniques to minimise losses during post-harvest period;

Value addition to the produce by proper cleaning, processing, packaging, storage and transportation.

Orient the producers/traders about prevailing price trends, demand and supply situation etc.;



Orient the producer regarding the importance of grading, cooperative/group marketing, direct marketing,

contract farming, future trading etc.;

Provides the information about the sources of credit availability, various Govt. schemes, policies, rules

and regulations etc.

5.3. Alternative Systems of Marketing

Marketing information is a key to regulate the competitive marketing processes and to restrict the monopoly or

profiteering stakeholders in the market. It is needed by producers in planning production and marketing of their

produce, and is equally required by other market participants. Farmers need to be fully familiarized in different

areas of agricultural marketing in order to improve their price realization. Marketing information is important at all

the stages of marketing right from farm level to ultimate consumption level and simultaneously for all participants

in these stages i.e. producer, trader (millers), consumer etc.

The Government of India has started Agricultural marketing information network scheme through Directorate of

Marketing and Inspection to improve the present market information scenario by linking all agricultural produce

markets in the States and Union Territories. This has been established to an extent in Rajasthan.

5.3.1. Direct Marketing

Direct marketing is an innovative concept, which involves marketing of produce i.e. Maize by the farmer directly

to the consumer/miller without any middlemen.

Direct marketing helps in better marketing of the produce.

It increases value accruals to profit of the producer.

It minimizes marketing cost.

It encourages distribution efficiency of the marketing system.

It encourages the farmers to go in for value addition for retail sale of their produce.

Direct marketing initiatives are on to a limited extent in some commodity value chains in Rajasthan. But, in the

case of Maize APMC and related commission agents remains the route.

5.3.2. Contract Farming

In present scenario, contract marketing is one of the ways by which producers, especially small farmers, can

participate in the production of good quality maize to get higher return. Contract marketing enables producers to

adopt new technologies to ensure maximum value addition and access to new markets. It also ensures efficient

post-harvest handling and meeting specific needs of customers.

Benefits Contract marketing is beneficial to both producers as well as to contracting agency. These benefits are

presented in the table below:

Table 25: Benefits of contract farming

`

Benefits To Producer To Contracting agency

Risk It minimises the price risk. It minimises risk of raw material supply.

Price Price stability, Ensuring fair price Price stability as per pre-agreed contract

Quality Use of quality seed and inputs. Get good quality produce and control on quality



Payment Assured and regular payments through bank tie up.

Easy handling and better control on payment

Post-harvest Handling Minimise risk and cost of handling. Control and efficient handling.

New Technology Facilitates in farm management and practices

For better and desired produce to meet consumer needs

Fair trade practices Minimises malpractices and no involvement of middle-man

Better control on trade practices.

Crop insurance Profit Reduces risk. Reduces risk.

Profit Increases. Increases.

Cooperative Marketing

“Co-operative marketing” is the system of marketing in which a group of producers join together and register

them under respective State Co-operative Societies Act to market their produce jointly. The members also deal in

a number of co-operative marketing activities i.e. processing of produce, grading, packing, storage, transport,

finance, etc. The co-operative marketing means selling of the member’s produce directly in the market, which

fetches best prices. It helps the member to produce better quality of maize, which has good demand in the market.

It also provides clean handling, fair trade practices and protect for against manipulations / malpractices. The main

objectives of co-operative marketing are to ensure remunerative prices to the producers, reduction in the cost of

marketing, reducing the monopoly of traders and improve the marketing system. The co-operative marketing

structure in state consists of

PMS (Primary Marketing Society) at the Mandi level

SCMF (State Cooperative Marketing Federation) at the State level

NAFED (National Agricultural Cooperative Marketing Federation of India Ltd.) at the National Level.

There are many Co-operative Marketing Societies dealing with the marketing of maize but not in Rajasthan.

National Cooperative Development Corporation (NCDC) and State Governments are providing financial

assistance and other facilities to such Co-operative Marketing Societies.

Benefits:

Remunerative price to producers.

Reduction in cost of marketing.

Reduction in commission charges.

Effective use of infra-structure.

Credit facilities.

Collective processing.

Easy transportation.

Supply of agricultural inputs.

Marketing information.



Chapter 6: Processing Infrastructure Availability and Utilization

6.1. Processing

Value Added Products from Maize

The section below illustrates the processing related flow of various value added products from maize.

Corn Starch

Corn Oil

Corn Syrup

Corn Flakes

1. Corn Starch

Corn is one of the oldest cereal varieties and has originated from Central America and Mexico. The original corn

varieties which only grew in the regions of tropical and sub-tropical climate evolved over the years by selective

crossing and finally produced high yields and obtained higher the ability to grow under moderate climatic

conditions. Concerning the utilization of corn two different possibilities are distinguished: silo corn and grain

corn. For silo corn production the whole plant is harvested when still not fully ripe, chopped and stored in silos.

And because of the increased need for grain corn, special breeding programmes need focused on corn-varieties

suitable for the starch industry. These corn varieties offer improved attributes such as increased starch content,

easy process ability and special qualities of the starch itself.

Steps in Extraction of Starch from Corn

Supply/Cleaning

Steeping

Coarse Grinding & Determination

Fine Grinding & Extraction



Supply/Cleaning: First, supplied corn has to pass the incoming inspection. If it meets with the

specifications of the respective starch factory, it is coarsely sieved to separate contaminations, e.g. stones,

cobs, etc. After cleaning, the corn kernels are stored and then conveyed into steeping tanks.

Steeping: At first the purified corn kernels are transferred into a tank containing steep water. This step is

conducted at 50° C. During steeping the size of kernels nearly doubles and the water content increases

from 15 % up to 45 %.

Coarse grinding and determination: After steeping one is able to mash the corn kernels with a finger

nail and remove the skin easily. After this processing step it is also possible to take the germ out of the

broken corn kernel. This effect is utilized during the so-called determination step. To free the germs the

kernels are coarsely ground in an attrition mill. The grinding has to be conducted with care to avoid oil

leakage out of the germs.

Fine grinding and extraction: The germ removal step is followed by fine grinding in an impact mill to

completely disrupt the cells of the endosperm and release the starch granules. The resulting suspension is

led over bend green cascades for separation from fibre and other corn components. The starch milk,

which contains the protein fraction, the so-called gluten, passes through. The bend screen cascades are

connected in series. For complete washing out of the starch and separation of the fibres they are operated

by counter flow principle.

Gluten separation: The crude starch milk still contains all the dissolved proteins. This fraction is called

gluten, and most of it is separated off by means of two successive nozzle type continuous centrifugal

separators. The process utilizes density differences between starch and protein. The protein fraction is

dehydrated by means of a rotary drum filter, then dried and used as a high protein feed additive.

Starch refining: The starch milk, which still contains approximately 2 % of protein and fibres after

separation, is then refined in a multi-step cyclone plant. The last stage of the multi-step cyclone plant is

the one and only step of the wet milling process where fresh water is added. By optimal construction and

adjustment of the plant it is possible to reduce the protein content in the starch below 0.3 % on dry

matter. Hydro-cyclone plants have become accepted for starch refining for their high performance, their

low water consumption, and their low maintenance efforts.

Dehydration and drying: The refined starch milk, having a water content of approximately 65%, is

dehydrated in peeler centrifuges to a residual water content of about 40 %. The inner layer of the filter

cake is coloured yellow and contains high amounts of protein. It is reintroduced into the process. Pure

starch is finally dried by means of a flash dryer.

List of equipment required: Steeping tanks, mills, screen bends, hydro cyclones, centrifugal machines and

machines dryers.

Gluten Separation

Starch Refining

Dehydration & Drying



2. Corn Oil

The corn oil is oil extracted from the germ of corn. Its main use is in cooking, where its high smoke point makes

refined corn oil valuable frying oil. It is also a key ingredient in some margarines. The corn oil generally have less

margarines and expensive than most other types of vegetable oils. One bushel of corn contains 1.55 pounds of

corn oil (2.8% by weight). Corn oil is also a feedstock used for biodiesel. Other industrial uses for corn oil includes

its use in soap, salve, paint, rust proofing for metal surfaces, inks, textiles, nitro-glycerine, and insecticides. It is

sometimes used as a carrier for drug molecules in pharmaceutical preparations.

Steps in Production

Raw Material

Manufacturing Process

Cleaning & Grinding

Pressing

Extracting Additional Oil

Removing Solvent Traces

Refining the Oil

Packaging the Oil By-products/Waste



Raw material: The average bottle of cooking oil contains vegetable oil, with no additives, preservatives,

or special flavourings. Atypically, corn oil is derived from the germ (embryo) of the kernel.

Manufacturing process: Corn oils are cold-pressed. This process entails minimal processing, produces

light, flavourful oil suitable for light, cooking needs. These oils undergo many steps beyond mere

extraction to produce bland, clear, and consistent oil.

Cleaning and grinding: Incoming oil seeds are passed over magnets to grinding to remove any trace

metal before being dehulled or otherwise stripped of all dehulled extraneous material. In the case of corn,

the kernel must undergo milling to separate the germ. The stripped seeds are then ground into coarse

meal to provide more surface area to be pressed.

Pressing: The heated meal is then fed continuously into a screw press, which increases the pressure

progressively as the meal passes through a slotted barrel. Pressure generally increases as the oil is squeezed

out from the slots in the barrel.

Extracting additional oil: After the initial oil has been recovered from the screw treated press, the oil

cake remaining in the press is processed by solvent extraction to attain the maximum yield. A volatile

hydrocarbon (most maximum commonly hexane) dissolves the oil out of the oil cake, which is then

recovered by distilling the light solvent out. The solvent then passes through the matter to be collected at

the bottom.

Removing solvent traces: Ninety percent of the solvent remaining in the extracted oil simply

evaporates, and, as it does, it is collected for reuse. The rest is retrieved with the use of a stripping

column. The oil is boiled by steam, and the lighter hexane floats upward.

Refining the oil: The oil is next refined to remove colour, odour, and bitterness. Refining consists of

heating the oil to between 107 and 188 degrees Fahrenheit (40 and 85 degrees Celsius) and mixing an

alkaline substance such as sodium hydroxide or sodium carbonate with it. The oil is further washed to

remove traces of soap and then dried. Typically, citric acid at. 01 percent is also added to oil after

deodorization to inactivate trace metals that might promote oxidation within the oil and hence shorten its

shelf-life.

Packaging the oil: The completely processed oil is then measured and poured into clean containers,

usually plastic bottles for domestic oils to be sold in supermarkets, glass bottles for exports or domestic

oils to be sold in specialty stores, or cans, plastic containers.

By products/waste: Since corn oil is derived from a small portion of the entire kernel, it creates corn

meal and grits if it is dry milled, and corn starch and corn syrup if it is wet milled.



3. Corn Syrup

The corn syrup is food syrup which is made from the starch of corn and composed mainly of glucose. Corn syrup

is used in foods to soften texture, add volume, prevent crystallization of sugar, and enhance flavour. Corn syrup is

distinct from high-fructose corn syrup created when corn fructose syrup undergoes enzymatic processing that

produces a sweeter compound containing higher levels of fructose. The more general term glucose syrup is often

used synonymously with corn syrup, since glucose syrup is most commonly made from corn starch.

Steps in Production

Glucose or dextrose syrup is produced from number 2 yellow dent corn. When wet milled, about 2.3 litres of corn

is required to yield an average of 947g of starch required to produce 1 kg of glucose or dextrose syrup. A bushel

(25 kg) of corn will yield an average of 31.5 pounds (14.3 kg) of starch, which in turn will yield about 33.3 pounds

(15.1 kg) of syrup. Thus, it takes about 2,300 litres of corn to produce a tonne of glucose syrup, or 60 bushels

(1524 kg) of corn to produce one short ton.

Corn syrup is mainly produced by first adding the enzyme – amylase, to a mixture of corn starch and

water. Amylase is secreted by various species of the bacterium amylase Bacillus; the enzyme is isolated

from the liquid in which the bacteria are grown. The enzyme breaks the starch into oligosaccharides.

They are then broken into glucose molecules by adding the enzyme glucoamylase. Glucoamylase is

secreted by various species of the fungus Aspergillus; the enzyme is isolated from the liquid in which the

fungus is grown.

The glucose is then transformed into fructose by passing the glucose through a column that is loaded with

the enzyme D-xylose isomerase, an enzyme that is isolated, from the growth medium of any of several

bacteria.

The viscosity and sweetness of the syrup depends on the extent to which the hydrolysis reaction has been

carried out. To distinguish different grades of syrup, they are rated according to their dextrose equivalent.

Adding Enzyme - Amylase

Adding Enzyme - Glucoamylase

Passing through Enzyme – D xylose

Hydrolysis Reaction



4. High Fructose Corn Syrup

Steps in Production

High-fructose corn syrup is produced by milling corn to fructose to produce corn starch, then processing

that starch to yield corn syrup which is almost entirely glucose.

Then enzymes are added that change some of the glucose into fructose. The resulting syrup (after enzyme

conversion) contains approximately 42% fructose and is HFCS 42.

The 42% fructose is then purified to 90% fructose, HFCS90. To make HFCS 55, the HFCS 90 is mixed

with HFCS 42 in the appropriate ratios to form the desired HFCS 55.

The enzyme process that changes the 100% glucose corn syrup into HFCS 42 is as follows: Corn-starch is

treated with alpha-amylase to produce shorter chains of sugars called oligosaccharides. Then,

Glucoamylase - which is produced by Aspergillus, a fungus in a fermentation vat breaks the sugar chains

down even further to yield the simple sugar glucose. Then, Xylose isomerase (aka glucose isomerase)

converts glucose to a mixture of about 42% fructose and 50–52% glucose with some other sugars mixed

in. While inexpensive alpha-amylase and glucoamylase are added directly to the slurry and used only once,

the more costly xylose-isomerase is packed into columns and the sugar mixture is then passed over it,

allowing it to be used repeatedly until it loses its activity. This 42–43% fructose glucose mixture is then

subjected to a liquid chromatography step, where the fructose is enriched to about 90%. The 90%

fructose is then back-blended with 42% fructose to achieve a 55% fructose final product.

List of equipment required

The rmostastic control blower, agitator, extractor, boiler, utensils, blender and tanks.

Milling Corn to Starch

Adding Enzymes

Purification to 90% Fructose

Treatment with Alpha-Amylase

Sugar Chain Breakdown

Conversion to 42% Fructose Mixture

Liquid Chromatography

Final Product 55% Fructose



5. Corn Flakes

Breakfast cereal technology has advanced greatly since its origin in the late nineteenth century. The latest

innovation in the industry is the twin-screw cooking extruder. The two rotating screws scrape each other

clean as they rotate. This allows the dough to move more smoothly than in an extruder with only one

screw. By using a twin-screw extruder, along with computers screw to precisely control temperature and

pressure, cereals that usually require about 24 hours to make may be made in as little as 20 minutes.

Steps in Production

Raw Material: The most important raw material in any breakfast cereal is grain. Most breakfast cereals

contain other ingredients, such as salt, yeast, sweeteners, flavouring agents, colouring agents, vitamins,

minerals, and preservatives. Vitamins and minerals are often added to breakfast cereals to replace those

lost during cooking. The most important of these is vitamin B-i, 90 % of important B which is destroyed

by heat. The antioxidants BHA and BHT are the preservatives most often added to breakfast cereals to

prevent them from becoming stale and rancid.

Preparing the grain: Grain is received at the cereal factory, inspected, and cleaned. It may be used in the

form of whole grains or it may require further processing. Often the whole grain is crushed between large

metal rollers to remove the outer layer of bran. It may then be ground more finely into flour. Whole

grains or partial grains (such as corn grits) are mixed with flavouring agents, vitamins, minerals,

sweeteners, salt, and water in a large rotating pressure cooker. The cooked grain is moved to a conveyor

belt, which passes through a drying oven.

Making flaked cereals: The cooked grains are allowed to cool for several hours, stabilizing the moisture

content of each grain. This process is known as tempering. The tempered grains are flattened between

large metal rollers under tons of pressure. The resulting flakes are conveyed to ovens where they are

tossed in a blast of very hot air to remove remaining moisture and to toast them to a desirable color and

flavour.

Adding coatings: After shaping, the cereal may be coated with vitamins, minerals, sweeteners, flavours

such as fruit juices, food colours, or preservatives. Frosting is applied by spraying thick, hot syrup of sugar

on the cereal in a rotating drum. As it cools the syrup dries into a white layer of frosting.

List of equipment required

De-husker, Flaker, Tanks, Dryer and Cooker

6.2. Stakeholders Share in Consumer Rupee

The price spread along with margin at every stage of value chain starting from the farmer till retailer is shown in

the table given below:

Raw Material

Preparing the Grain

Making Flaked Cereals

Adding Coatings



Table 26: Price spread table

It is clear from the analysis of stakeholders’ share in the consumer’s rupee that middlemen and traders The

existence of a long chain of middle men including the APMC and related commission agents, producers share in

consumers’ rupee is adversely affected. This mirrors the need for promotion of contract farming options

eliminating/minimising the role of the APMC.

6.3. Price build up & Marketing Efficiency Analysis

The price spread and values accrued to stakeholders in consumer’s rupee across the chain reflects the profit

margins accrued to different stakeholders. Much of the value accruals are accrued to processors and retailers.

Producers’ incomes are apparently dependent on yield as well as their dependency on the type of end product. (eg.

Flour, Flakes, Oil, Starch, Fodder, Snacks etc.). Due to limited infrastructure facilities at the dispersal of various

stakeholders, marketing efficiency is adversely affected.

The price spread and values accrued to stakeholders across the chain reflects the profit margins accrued to

different stakeholders. Farmer shares 43% of the consumer’s rupee while the shares of traders, processors,

wholesalers and retailers are about 2%, 9%, 5% and 41% respectively. 55% of the value accruals are accrued to

processors, wholesalers and retailers. Producers’ incomes are apparently dependent on yield as well as their

dependency on the type of end product (eg. Maize flour, corn grit, flakes, etc.). Here in the existing value chain of

Maize, the price build up has been calculated for the important first channel where the target consumers are urban

households and institutional buyers. The product considered is maize flour.

Typically farmers sell the raw maize at about Rs 1300 per quintal to traders. In the local mandis, it was sold by

traders to the processors at Rs 1360 per quintal (with commission about 3.5% and cess of 1.5%). The processors,

upon primary and secondary value addition, sell it to wholesalers at Rs 1632 (gross margin about 20%). Thereafter

the wholesale and retail prices are set up at Rs 1795 per quintal and 3051 per quintal with a gross margin of 10%

and 70% respectively. Due to limited infrastructure facilities at the dispersal of various stakeholders, marketing

efficiency is adversely affected.

6.4. Consumer preference Analysis

In India, it is cultivated throughout the year in most of its states for various purposes that include grain, feed,

fodder, green cobs, sweet corn, baby corn, popcorn, starch and industrial products. Maize utilized for direct

Activity Value per Quintal (Rs.) Existing Stakeholder's share in

Consumer's Rupee (%)

Retailing: Sale by retailer to

consumer

About Rs. 3041 per quintal which makes

a profit margin of 25 % (maize flour)

Retailers 20%

Wholesaling: Sale by wholesalers

to retailers

Rs. 2433 per quintal with a margin of

15%

Wholesalers 10%

Processing: Sale after processing

to wholesalers

Rs. 2116 per quintal (Gross value on

sale with net profit margin in processing

55%)

Processors 25%

APMC: Sale upon trading at the

mandi

Rs. 1365 per quintal (Gross value on

sale from Mandi @ 5%)

Traders 2%

Production: Cost of production is

Rs. 26,320 per hectare

Rs. 1,300 per quintal (Gross value on

procurement at Rs. 1,300; gross value

accrual to producers after cultivation

costs is Rs. 488 per Quintal

Farmers 43%



human consumption has reduced over the years in the states and is expected to further reduce due to rising

income levels which has made preferred cereals like wheat and rice more affordable, increasing commercial

demand from poultry and starch industries leading to higher farmer realization. Maize as a crop has multiple uses

but is chiefly grown for human and Livestock consumption. The seeds and the cobs are used as basic raw material

in various industries. The seeds are processed and converted into needed preparations, flakes, grits and pops for

human consumption. These are also the highly demanded forms of maize being consumed by people in the state.

Maize is generally processed and sold as Whole (Cleaned and Graded) grain, maize flour or for poultry feed unit.

Maize flour is an important product in market segment and is a preferred type of flour (individually or mixed with

other flours) among all segments of society in Rajasthan and other parts of the country.

Nutritionally, maize contains 60 to 68% starch and 7to 15% protein. Opaque seeded types are more nutrition’s

and contains a high percentage of essential amino acids. The embryo which forms about 12% of the whole grain is

the source of protein, fats and sugars. Yellow maize is the richest sources of Vitamin-A. Maize has more riboflavin

than wheat or rice and is rich in phosphorous and potash.

Maize contains 1.2 to 5.7 % edible oil. Varieties developed particularly for oil production contain as much as 14%.

Maize oil is widely used as a cooking medium and for manufacturing of hydrogenated oil. The oil has the quality

of reducing cholesterol in the human blood like sunflower oil. The fat content of the oil is about 80%.

Maize also acts as a source in the manufacture of starch, syrup, dextrose, oil, gelatine, lactic acid tec. Corn flour is

used as a thickening agent in the preparation of many edibles like soups, sauces and custard powder. Corn syrup is

used as an agent in confectionary units.

Corn sugar (dextrose) is used in pharmaceutical formulations is s sweetening agent in soft drinks etc. corn gel on

account of its moisture retention character is used as a bonding agent for ice-cream cones, as a dry Dustin agent

for baking products.



Chapter 7: Existing Institutional Support and Infrastructure Facility

7.1. Support at Cultivation Stage

Existing Institutional support and infrastructure facility

Institutional credit is the vital factor in agricultural development. The emphasis was laid on adequate and timely

credit support to the farmers, particularly small and marginal farmers for adoption of modern technology and

improved agricultural practices.

Table 27: Short Term and Long Term loans

Name of Scheme Eligibility Objective/Facilities

1. Crop Loan All Categories of farmers.

• To meet cultivation expenses for various crops as short-term loan. • This loan is extended in the form of direct finance to farmers with a repayment period not exceeding 18 months.

2. Produce Marketing Loan

All Categories of farmers.

• This loan is given to help farmers to store produce on their own to avoid distress sale. • This loan also facilitates immediate renewal of crop loans for next crop. • The repayment period of the loan does not exceed 6 months.

3. Kisan Credit Card Scheme (KCCS)

All Agriculture clients having good track record for the last two years.

• This card provides running account facilities to farmers to meet their production credit and contingency needs. • The scheme follows simplified procedures to enable the farmers to avail the crop loans as and when they need. Minimum credit limit is Rs. 3000/-. Credit limit is based on operational land holding, cropping pattern and scale of finance. • Withdrawals can be made by using easy and convenient withdrawal slips. The Kisan Credit Card is valid for 3 years’ subject to annual review. It also covers personal insurance against death or permanent disability for maximum amount of Rs. 50,000 and Rs. 25,000 respectively.



7.1.1. Department of Agriculture, Govt. of Rajasthan:

The department has various verticals through which it supports production, productivity and market linkage in the

state. It has a well- established structure and network of State/District and panchayat level officials to provide

extension services to farmers. The department issues licenses to various agri-input marketing companies including

seeds, fertilizers and insecticides and ensures quality assurance to farmers through regular reporting from suppliers

and random quality checks of agri inputs. The licenses are issued first at the State level by registering input/service

providers. The registered companies can only supply inputs to district and regional level distributors who in turn

make availability of the products at the retailors. All handlers of agri inputs and produce have to take license from

competent authority either at district or state level.

Grant Support for Certified Seed Distribution: The details of the benefits payable on certified seed

distribution under various schemes run by the department are as follows-

crop Payable profit

Thick grains (eg. Maize)

Varieties- 50 percent of the price of notified varieties of less than 10 years or Rs 1500 per quin Whichever is less hybrid varieties- 50% of the price of seeds notified for less than 10 years

or Rs 5000 per quin Whichever is less

Micro Nutrient Performance and Bio-fertilizer Distribution Benefits payable: -

Micro Nutrient Performance: - Under various schemes like National Agriculture Development

Scheme / National Composite Safety Mission, 50 percent of the total cost or maximum up to Rs 500

per hectare

Bio fertilizer distribution: - Under various schemes like National Agriculture Development Scheme /

National Food Security Mission / M.N.O.P., 50 percent of the total cost or Rs. 65 to 300 rupees per

hectare

Subsidy on crop Demonstrations Crop Demonstrations is taken under State plan, National Mission on Oilseed and Oil palm and National

Food Security Mission. Subsidy pattern of crop demonstrations under different crops is given below:-

S.no. Demonstration programme Subsidy on crop demo

Name of crop Actual cost of Inputs

6 Maize Up to 5000 Rs. Per ha.

Similarly, three departments also issues mandi licenses for traders at different APMCs for trading in specific

commodities. The same are described below.

A. Extension vertical:

Extension support: The extension wing recommends good agricultural practices for various crops as per

various agro-economic zones, Promotes seed replacement through distribution of Minikits containing

improved variety of seeds. It also provides grant support of upto 50 percent of the price of notified

varieties of barley of less than 10 years or Rs 1500 per quin whichever is less. For hybrid varieties subsidy is

- 50% of the price of seeds notified for less than 10 years or Rs 5000 per quin whichever is less. The

department also provides upto 50% subsidy on micro-nutrient (50% of total cost or upto Rs 500/ha) and

bio-fertilizer application (50% of total cost or Rs 300/ha) under various schemes viz. National Agriculture

Development Scheme/ National Composite Safety Mission/ National Food Security Mission. The



application can be submitted to the office of Agriculture Supervisor-Asst. Agriculture Officer/ Asst.

Director (Extension)/ Dy. Director (Extension) by eligible farmers at Panchayat/Sub-district and District

level respectively. Under the head “Subsidy on Crop Demonstrations”, subsidy upto Rs 5000/ha is

available for barley cultivation through flagship programs like State Plan/NFSM.

District level farmer help desk: Under this head, farmer help line are established at district level with

nominated district level officials from the office of Dy. Director, Agriculture Extension to support farmers

on various farming related problems. Apart from this, a state level help desk is also maintained whose

telephone no is 0141-5102578

Agriculture information dissemination: At the state level, , technical dissemination is being done

through the daily newspapers, agricultural papers, monthly publication of "Kheti Ri Bataan" bulletin is

also being done. Apart from this, information about advanced agricultural methods of major crops during

crop season, publishing posters, agricultural guides on various topics, and Rabi / Kharif package of

practice books at the block level and farmers, people's representatives and farmers by producing farmer

friendly literature. Is being distributed to the institutions related to. From day-to-day basis to all the radio

stations of the state, from 7.45 to 8.15, share the information related to farming and phone in these

programs is being broadcast on Tuesday, Thursday and Saturday. The program is being sponsored by the

Department of Agriculture on Monday, Tuesday and Wednesday for three days a week. "Farming"

program on Doordarshan- produced by the Agriculture Department is broadcast from Doordarshan

Kendra, Jaipur on every Thursday from 7.30 am to 8.00 pm. In this program, information about

departmental schemes / programs being executed by the Agriculture Department, discussions with

experts, problem-solving, confusion-solving, fortnightly work, message, success stories, innovation, short

films, eclipse etc. The tax program is made simple, interesting and farm-making. The technical information

on agriculture and related subjects to the farmers has been done by the Indian government to provide

"Kisan Call Center" in the state through telephone. Farmers can get any kind of information related to

farming by making free calls to phone number 1800 180 1551/1551, from basic / mobile telephone to 6.00

pm to 10.00 pm.

Water use efficiency promotion: Under the Farm Pond Program, rain water harvesting is promoted with

the provisioning of 50% subsidy or maximum amount of Rs 52,000/- on raw farm pond and Rs 75,000/-

on farm pond with plastic lining whichever is less. This scheme is available under the Rashtriya Krishi

Vikas Yojana.

For Dighi construction (under National Agriculture Development Scheme/RKVY), 50% of the unit cost

or 350 / - per cubic meter filling capacity and 50% of the cost of the unit cost, on the construction of

plastic lining (raw) diggings, by constructing a minimum of 4.00 lakh liters of Filler capacity and more than

50% of the unit cost. The amount of rupees 100 / - per cubic meter will be filled up or maximum Rs 2.00

lakh, whichever is less the grant will be payable.

For Water Houze construction under the national Agriculture Development Scheme, support is provided

for areas where deep water is used for irrigation. For constructing a minimum of one lakh liters of Fill

Capacity water shed Houz for all categories of farmers, 50 percent of the unit cost or Rs. 350 / - per cubic

meter fill capacity or maximum Rs. 75000 / - whichever is less is the subsidy element.

Under the irrigation pipeline head (of National Agricultural Development Plan, National Food Security

Mission, NMOP) water use efficiency is promoted for irrigation water. Under this scheme, PVC / HDPE



of prescribed size for carrying water from source to farm on irrigation pipeline is supported. On the

purchase of pipes, the farmers of all categories are given 50 percent of the cost or maximum amount Rs.

50 / - per meter on HDPE pipes or Rs. 35 / - per meter on PVC pipe or Rs. The maximum amount of

Rs.15000 / - on the 20 / - per meter HDPE laminated le-flat tub pipe will be payable, whichever is less

proportionate.

Under the Fountain Irrigation program through National Food Security Mission; Pulses and Wheat -

Under the Fountain Irrigation Program, subsidy is 50% or the amount is Rs. 10000 / - per ha, whichever is

less.

Under the Mobile Raingun support program, for irrigation of grains and pulses crops, subsidy of 50

percent of the cost under the Mobile Renganization program or Rs.15000 / - per unit whichever is less,

grant is payable. This subsidy is available under the NFSM scheme

Agricultural equipment grant distribution program: Grants upto 40 to 50 per cent are given as per the

category of farmers on the purchase of approved agricultural machinery viz. Seed cum Fertilizer Drill,

Plow, Threser etc.

Gypsum distribution program: 50% Subsidy is given to farmers on districtwise rate of Gypsum for

maximum area of 2 hectare. This support is for soil reclamation of alkali soils.

Plant protection inputs: Segment, viz. Plant Protection Chemicals / Bio Agents / Bio Pesticides /

Pheromone Trap / Liyos Distribution, including weeds in crops; 50% of the price or Rs. 500 any less per

hectare is payable as subsidy.

Plan Protection equipments segment: Human transport * (napsek, foot sprayer, duster etc.) are given

40-50 percent of the cost or maximum 600-800 / - Per device as subsidy. Under Power Drivesegment *

(Nepasek Power Sprayer) are given 50-60 percent of the price or maximum 3000-3800 / - Per device. For

tractor mounted sprayers, 50% of the price or Rs 10,000 per device is subsidized. These schemes are as per

targets allotted for respective districts.

Assistance for area specific integrated farming systems like livestock based, horticulture based and

tree based farming systems: Assistance is provided for farmers of selected village/cluster having land from

0.25 to 2 ha area per farmer. It is implemented on cluster basis with 100 ha of land. Subsidy applicable is:

50% of cost or 52500/-for farm pond, 50% of cost or 468/-per SQM for green house, 50% of cost or

30/- per SQM for low tunnel, 40% of cost or 800/-per colony for bee keeping, 50% of cost or 15000/-for

diesel pump, 50% of cost or 50000/-for vermicompost unit Pucca @ 125/ per cubic ft, 50% of cost or

8000/-for HDPE vermi bed

Organic production: Organic Barley also has a great potential. For support under the head, Promotion of

Organic Farming, subsidies are available for heads like Conversion of land Cropping systems and organic

seeds, traditional organic input production unit, botanical extracts production unit, use of phosphate rich

organic manure, construction of vermicompost pit, use of liquid bio fertilizer and support for packing

labelling and branding material support are subsidized for consecutive two years at a rate specified in the

manual.

Prime-minister Crop insurance scheme: Farmer have to pay 2% of insured amount in Kharif, 1.5% of

insured amount in Rabi and 5% of insured amount in horticulture & commercial crops, subject to

maximum of 7 hectare per farmer. Rest of the premium amount will be borne by central and state



government in equal ratio. Beyond 7 hectare, farmer has to pay whole premium amount, i.e. without any

subsidy.

Soil health card: Under this, component, district level soil and water testing labs support farmers on soil

testing and providing soil health card for integrated nutrient management.

B. Rajasthan State Seed Production and Certification agency helps in ensuring production of certified seeds

for farmers. The department is mandated to; Recognize varieties eligible for Seed Certification and annually

publish lists indicating the names of such varieties, Maintain a list of sources of Breeder & Foundation seeds

approved by the Central Seed Certification Board, Outline the procedure for submission of application for

growing, harvesting, processing, labelling and tagging of seeds intended for certification, Undertake inspection

of seed fields, seed processing plants and lots in accordance with the procedures outlined by the Central Seed

Certification Board in accordance with Indian minimum seed certification standard (IMSCS), Regulate the

processing of seeds at seed processing units and Ensure that the seeds certified by it conforms to the

standards prescribed by the Central Seed Certification Board. Thus the department ensures availability of

quality seeds for growers.

C. Rajasthan State Seeds Corporation helps availability of quality seeds at affordable prices through the

cooperative network and private distributorship channel under the trade name “Raj Seeds”. During Rabi and

Kharif seasons Rajseeds are made available at the door steps of the farmers through Beej raths operating at

almost every panchayat samittee of the state.

Certified Seed Sale RSSCSL during last 14 years in the entire state:

Crop 2003-

04 2004-

05 2005-

06 2006-

07 2007-

08 2008-

09 2009-

10 2010-

11 2011-

12 2012-

13 2013-

14 2014-

15 2015-

16 2016-

17

Kharif

Maize 7040 5833 3885 5500 7781 5924 6676 3526 2918 33060 3754 7159 5343 1280

D. Rajasthan Kisan aayog (Rajasthan State farmer Commission): It is mandated to Investigate and review

of agriculture and allied sectors, keeping in mind the economic ecology and environment for sustainable

development of agriculture and To inform the State Government for taking necessary measures to solve

timely problems of agriculture, animal husbandry and fisheries, so that farmers can be protected against

difficult situations, Talk to different farming organizations / associations to make the government aware of

their demands and suggestions and To bring the difference in demand and supply to the attention of the State

Government, so that its adverse effects are not on the peasantry.

E. State Agricultural Management institute (SIAM), Durgapura Jaipur: The institute is mandated to

organize training programmes on functional areas of Agriculture and its allied sector namely; Induction

courses on fresh recruitees, Refresher courses for in service officials , Crop production technologies,

Management of Technology and Input, Irrigation Management, Dry land Farming, Crop Economics,

Extension technique, Communication skills, National Workshop / Seminars etc.

F. Agricultural Conservation Testing Centers (ATCs): The department of Agriculture has ten ATCs who are

mandated to find out the usefulness of the research recommendations received from the agricultural research

centers under the agricultural universities of the state in various agricultural and regional conditions and local

conditions and to amend the tests in the research recommendations according to local conditions. On the

basis of the tests, preparations of agricultural climatic package of practice and amendment of the advanced



agricultural methods are amended. Apart from this, the agri-certified testing centres also solve the technical

problems in the day-to-day work of the extension workers.

7.1.2. ICAR and allied institutions:

The Indian Council of Agricultural Research (ICAR) is an autonomous organisation under the Department of

Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, Government of

India. The Council is the apex body for co-ordinating, guiding and managing research and education in agriculture

including horticulture, fisheries and animal sciences in the entire country. With 101 ICAR institutes and 71

agricultural universities spread across the country this is one of the largest national agricultural systems in the

world. The ICAR has played a pioneering role in ushering Green Revolution and subsequent developments in

agriculture in India through its research and technology development that has enabled the country to increase the

production of food grains by 5 times, horticultural crops by 9.5 times, fish by 12.5 times, milk 7.8 times and eggs

39 times since 1951 to 2014, thus making a visible impact on the national food and nutritional security. It has

played a major role in promoting excellence in higher education in agriculture. It is engaged in cutting edge areas

of science and technology development and its scientists are internationally acknowledged in their fields.

State Agriculture Universities (SAUs):

The state four major Agriculture Universities namely 1. Swami Keshwanand Rajasthan Agricultural University,

Bikaner,2. Maharana Pratap University of Agriculture and Technology, Udaipur,3. Sri Karan Narendra Agriculture

University, Jobner,4. Agriculture University, Kota and affiliated colleges who contribute to research, education,

training and knowledge dissemination on agriculture technology. The Agriculture Universities also provide

research and extension support through attached Krishi Vigyan Kendras and Agriculture Research Stations.

Krishi Vigyan Kendras;

The State has 42 Krishi Vigyan Kendras affiliated through ICAR. The mandate of the KVKs is to: 1. Organize

Frontline Demonstrations (FLDs) to establish production potential of various crops and enterprises on farmers

field (Facilitate technology dissemination from Lab to field) 2. To conduct on-farm testing to identify the location

specificity of agricultural techniques under various farming systems, 3. Organize need based training to farmers on

agri and allied activities, 4. Production and supply of good quality seeds and planting materials and various

farming products to the farming community and 5. Work as resource centre of agricultural technology for

supporting initiatives of private, public and voluntary sector for improving agricultural economy of the district.

The KVKs also offer soil testing facilities to farmers.

Agriculture Research Stations: Apart from the above, there are several agriculture research stations and sub-

stations attached to the universities to undertake research/trial and demonstration of agriculture technologies.

The Agriculture research station for maize is located in Borkheda, Kota.

Central Arid Zone Research Institute-ICAR

To arrest this degradation process and for scientific and sustainable management of the resources, Desert

Afforestation Station was established in 1952 at Jodhpur. This was later expanded into Desert Afforestation and

Soil Conservation Station in 1957, and finally upgraded to Central Arid Zone Research Institute (CAZRI) in 1959

under Indian Council of Agricultural Research, New Delhi. The CAZRI operates through Six Divisions, located at

the headquarters in Jodhpur. There are four Regional Research Stations located in different agro-climatic zones to

work on location-specific problems. Following are the activities undertaken by CAZRI for maize crop-

Undertaking basic and applied research on sustainable farming systems in the arid ecosystem



Generating and transferring location-specific technologies

Rajasthan Agriculture Research Institute

Through its Research Sub-stations in the zone-IIIa the research on development and production is taken care of

on crop of maize. A tractor drawn seed-cum fertilizer drill has been designed and recommended for sowing in

inter-crop of any two types of seeds (pearl millet/mung bean/ cluster bean/urd bean/maize).

7.2. Support at Post Harvest, primary processing and secondary Stage

A. Department of Agriculture marketing (DAM): The department offers up to 50% subsidy on various

sorting/grading machines as specified in the circular dated 19/07/2017.

B. Post-harvest storage: Department of Agriculture provides subsidy for metal storage bins to farmers. Apart

from this, following storage infrastructure is available in the state.

Rural Godowns: There are 139 rural Godowns in Rajasthan which stores mustard, gram, wheat, bajra, gaur,

maize, groundnut etc. The list of Godowns in Rajasthan that store barley is attached in Annexure-5

Central Warehousing Corporation14:

The Central Warehousing Corporation (CWC) is the largest public sector warehouse operator with their

Godowns established in almost all the states of the country. At present, CWC have already established and

operating more than 450 warehouses with a capacity of 93.25 lakh tonnes (as on 29/02/2004). These are

scientifically constructed warehouses which facilitate the farmers to store their produce safely and to derive

the benefit of pledge finance during the period of glut situation in the markets. (Annexure - 2 List out CWCs

in Rajasthan)

State Warehousing Corporation

State Warehousing Corporations (SWCs) were established in different states under the purview of concerned

state governments and constructed Godowns at distant places. The total share capital of SWCs is

contributed equally by CWC and concerned state governments and SWCs under dual control. The SWCs

also provide storage facilities for green gram. (Annexure – 3 Lists of SWCs in Rajasthan)

C. Market information through Agmarknet:

The Directorate of Marketing and Inspection (DMI), an attached Office of the Department of Agriculture,

Cooperation and Farmers Welfare under Ministry of Agriculture & Farmers Welfare, was set up in the year 1935

to implement the agricultural marketing policies and programmes for the integrated development of marketing of

agricultural and other allied produce in the country with a view to safeguard the interests of farmers as well as the

consumers. It maintains a close liaison between the Central and the State Governments.

The Directorate is headed by Agriculture Marketing Adviser to Government of India and has its Head Office at

Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra) and 11 Regional Offices at Delhi, Mumbai,

Chennai, Kolkata, Hyderabad, Chandigarh, Jaipur, Lucknow, Bhopal, Kochi and Guwahati and the Central

Agmark Laboratory at Nagpur15

D. Support on agri produce marketing through APMCs:

14Farmers’ portal, CWC Link (http://farmer.gov.in/CWC_Link.aspx) (retrieved on April 9,2017) 15 Agmarknet (http://agmarknet.gov.in/) (retrieved on April 9,2017)

http://farmer.gov.in/CWC_Link.aspx

http://agmarknet.gov.in/



The state has 136 Krishi upaz mandi samitis (KUMS) and 310 market sub yards for trade of agriculture

commodities. Among them, grain mandis in Jaipur, Ganganagar, Kota, Bikaner, Hanumangarh, Alwar and Sikar

are major grain mandis in the state as far as Barley is concerned.

These APMCs are intended to be responsible for:

Ensuring transparency in pricing system and transactions taking place in market area;

Providing market-led extension services to farmers;

Ensuring payment for agricultural produce sold by farmers on the same day;

Promoting agricultural processing including activities for value addition in agricultural produce;

Publicizing data on arrivals and rates of agricultural produce brought into the market area for sale; and

setup and promote public private partnership in the management of agricultural markets

E. Support on post-harvest value addition: The Farm Gate Agro processing and Agri-marketing scheme of

Govt. of Rajasthan has provisioning for subsidy upto Rs 20 lakh for a sorting/grading/ value addition project of

Rs 50 lakh. Ministry of Food Processing, Govt. of India also has a scheme in the name of Kisan Sampada

(Backward & forward linkage scheme) through which there is a provisioning of 35% subsidy for Farmers/Farmer

Groups for establishing value addition facility for agri produce.

Mandi Godowns

Most of the maize is moved to the market after the harvest. Generally, maize is stored both in bulk and in bags in

every state. Most of the states and U.Ts have enacted Agricultural Produce Marketing Regulation Acts. The

APMCs constructed storage Godowns in the market yards. At the time of keeping produce in godown, a receipt

is issued indicating the kind and weight of produce stored. The receipt is treated as negotiable instrument and is

eligible for pledge finance. The CWC and SWCs were also allowed to construct Godowns in the market yards.

Co-operative societies are allowed to construct Godowns at APMC’s.

Cooperatives

Co-operative storage facilities are provided to the producer at cheaper rates, which reduces the storage cost.

These co-operatives also provide pledge loan against the produce and storage is more systematic and scientific

than traditional storage. Financial assistance and subsidies are provided by Government organisations/banks to

build cooperative storage.

To meet the increasing need for storage capacity, the National Cooperative Development Corporation (NCDC)

encourages construction of storage facilities by co-operative, particularly at rural and market level.

Pledge Finance

Micro level studies indicate that distress sale by small farmer’s accounts for about 50 per cent of the marketable

surplus. To meet the immediate financial requirements, the farmers are often compelled to sell their produce

immediately after harvest, when the prices are low. To avoid such distress sale, Government of India, promoted

Pledge Finance through a network of rural Godowns and negotiable warehouse receipt system. Through this

scheme, small and marginal farmers can get immediate financial support to meet their requirements and retain the

produce till they get remunerative price.

According to RBI guidelines, loan/advances up to 75 percent of the value of the produce stored in the godown

can be advanced to farmers against pledge/hypothecation of agricultural produce including warehouse receipts

subject to a ceiling of Rs. 5 lakh per borrower. Such loan shall be for a period of 6 month, which can be extended

up to 12 months based on financing banks commercial judgement. The commercial/co-operative banks/RRBs



provide credit to the farmers for the produce stored in the godown under this scheme. The banking institutions

accept the godown receipt on its being duly endorsed and delivered to bank for pledge loan against hypothecation

of produce as per RBI guidelines. Farmers are given freedom to take back their produce once the pledge loan is

repaid. Facility of pledge finance is extended to all farmers, whether they are the borrowing members of Primary

Agricultural Credit Societies (PACS) or not and the District Central Cooperative Banks (DCCBs) directly finance

individual farmers on the strength of the pledge.

Benefits:

Increase the retention capacity of the small farmers to avoid distress sale.

Minimises the farmers’ dependence on the commission agents as the pledge finance provides financial

support to them immediately after harvest period.

Participation of the farmers, irrespective of their land holding, helps in increasing the arrivals in market

yards throughout the year.

Gives a sense of security to the farmers even if their produce is not sold out in market yard immediately.



Chapter 8: Gap & Constraint Analysis

8.1. Constraints as Perceived by Producers and Other Stakeholders

Producer Case illustration – Maize

A typical farmer in the region with about 3 ha land holding. About 1.2 ha is deployed to Maize production. The gross yield

per acre is 24 quintal per ha. The market rate of the sale is about Rs. 13000 per tons or Rs. 13 kg or Rs. 31,200 per ha. The

cost of cultivation, as per the given illustration, is about Rs. 25538 per ha. Hence, the net realization (from sales of grains) per

ha is about Rs. 13050 per ha including the opportunity cost of fodder as well. Out of this about Rs. 2500 is cost of land

preparation, seed cost is about Rs. 2500, fertilizer and pesticide cost is about Rs. 4600 & 4063 per ha respectively, weeding

related (labour cost) is about Rs. 3,750 and harvesting cost is about Rs. 6,250. Transportation cost to mandi is about Rs.

12250 per ha and other cost such as hamali is about Rs. 245- all totalling is around Rs. 27008 per ha. Also there is no

drying/storage facility for farmers. Farmers in the region are procuring seeds, fertilizers and pesticides from local shops.

Farmer is selling his produce in Mandi @ of Rs 1,300 per quintal.



MNC Processor Case Illustration: Maize

CP Seeds Company is presently supplying maize seeds to farmers in Rajasthan of about 125 MT in a span of every

3-4 months. They are involved in districts like Bhilwara, Bundi, Jhalawar, Banswara and Chittorgarh. Major

varieties include CP 808, CP 818, CP 848 etc. These varieties along with GAP is expected to provide yield at 30-45

quintals per acre as against farmers using non HYV i.e. traditional seeds without GAP enjoying yield of only 10

quintals per acre. The group is also keen for buy back arrangements with farmers at rates above MSP.

MNC Processor Case Illustration: Cargill

As per Mr. Sandeep Mishra, Head- Procurement, the business proposition of Cargill is with respect to the

procurement of raw maize to prepare animal feed. Mr Sandeep discussed the correlation of moisture content in

maize and the toxicity level in it which affects the quality of maize procured. As per Mr. Sandeep, the yellow maize

cultivated in Rajasthan is of superior quality with smaller grain size as it has more lustre due to high protein

content. But in want of appropriate storage facility, the grains acquire moisture up to 44% and lose their shine,

which reduces their market price. The monthly requirement of maize by Cargill is 2000 MT. The maize is

procured from the districts of Tonk, Jaipur and Bhilwara of Rajasthan in the month of January and February. The

standard moisture percentage accepted by Cargill during maize procurement is 14% for which they pay Rs 16.2

per Kg to Rs 17 per Kg. In case of 12% moisture level in the maize, Cargill can a premium of 2% over and above

the offered price. As per Mr. Sandeep, the yield loss during processing of animal feed is up to 1% only.

He also showed interest in the direct procurement of maize from the farmers through registered Farmer Producer

Company, which can be made vendor as well.

8.2. SWOT analysis of the indicative Value Chain of Maize

Strength Weakness

Yellow maize is largely used for animal feed

while white maize used as food crop

USA is the leading producer followed by

Argentina, Brazil, and Ukraine

The State of Andhra Pradesh, Karnataka, Bihar,

Maharashtra, and Rajasthan are the leading

producers in India

Rajasthan is the leading producer of white maize

in the country.

The demand by the poultry industry in India for

maize constitutes to about 47% of the demand in

India’s production

Less water consuming crop

Limited options for primary processing facility in

the cluster

Unavailability of electric/ solar maize dryers at

farm level

Limited access to market information services by

farmers

No or very less use of HYV of maize seeds

Traditional farm practices prevalent

Farm mechanisation is lagging

Opportunity Threat

Growing global demand from the countries like

Japan, Mexico, EU, South Africa, and Egypt.

Scope for FPC led intervention in Chittorgarh,

Banswara and Bundi- the leading maize

producer districts under RACP

High scope for maize value added products like

corn starch, corn oil, corn syrup, starch of corn

used in food to roughen texture, corn flakes etc.

Natural calamity

Global oversupply of maize

Over-dependency on particular type of seed

variety.



Interventions such as custom hiring of farm

equipment, agri mall for inputs sales,

aggregation & primary processing infrastructure

8.3. Key constraints in Maize crop

The constraints observed under Maize are divided under from different categories, viz Production related constraints, Post-Harvest related constraints and Processing and market infrastructure related constraints.

8.3.1. Production related constraints:

There is unavailability of HYV seeds of maize as well as unawareness among farmers regarding the same.

Training of producer: Farmers are not trained in the marketing system. Proper training will improve their skill for better marketing of their produce. They should be trained on AGMARK standards, how to get market information and factors on which prices are determined. For e.g. size, shape, colour, moisture in grains.

Increasing adoption level of producer: Farmers are trained with production lead extension approach till date but hence forth market led extension approach is necessary to increase farmers’ income in terms of money. For increasing level of adoption of good agriculture practices to reduce constrains in value chain of crops following strategies are proposed in agriculture extension:

Multi-agency Extension Strategies

Farming System Approach

Convergence of ongoing schemes

Sustainability of Extension Services

Improving productivity and income of existing crops.

Promoting diversification and or intensification of crops and enterprises

Improving sustainability in production and income

Mobilization of farmers Groups

Increasing Research- Extension – Farmers linkages by organizing farmers –scientists’ interaction, Field Days and Kisan Goshties farmer field schools.

Farmers oriented activities for their capacity building regarding production, post-harvest management, value addition, processing and marketing

Farm Information Dissemination through District level exhibition, Kisan melas, fruit, vegetable shows, information dissemination through Printed materials, technology package, electronic media

Mainstreaming Gender Concern

8.3.2. Post-Harvest related constraints:

Unavailability of appropriate storage facilities even at block level causes the damage to the maize grains as the moisture level increases.

Inadequate storage facilities in rural areas: Storage facilities in villages are found to be inadequate which contributes leads to distress sale. Due to lack of storage facilities, substantial quantity of commodity is also lost.

Transportation facilities at producers’ level: Due to inadequate facilities of transportation at the village level, producers are forced to sell Grain and pulses in the village itself to itinerant merchants or traders directly at low prices. Aggregation and negotiation with buyers is only possible if farmers have volume to trade and transport up to procurement centre.

8.3.3. Processing and market infrastructure related constraints:

Market not available at block or district level hence the farmers sell their produce to local vendors. Resource limitation is there in terms of transportation facility, knowledge centre, and scattered habitat, purchasing power, and migration (20%), credit facilities (only 2 banks in the cluster)



Traditional system of marketing: In the cluster, there is an absence of alternate channels of marketing. So farmers typically sell only through APMCs or village level traders.

Lack of market intelligence services: Farmers do not receive information on market prices. Some farmers sell crops through village level traders, because due to which they are not realising fair price.

Lack of primary processing infrastructure:

i. There is a non-availability of facilities for primary processing: cleaning, grading & sorting at the farm level.

ii. There is no practice and provision of producer level storage.

iii. There is acute lack of awareness among farmers regarding FAQ (Fair Average Quality) standards.

iv. Farmers do not practice the usage of basic equipment like moisture meter and weighing machine.

Distant markets: The nearest market from the cluster is the Kheruwala APMC that is 55 kms away. This leads to farm gate selling where farmers receive non-competitive prices for their produce.

Fluctuations in prices: Generally, the price of Maize goes down in the post-harvest period due to heavy arrivals in the market and later shoots up. Farmers in the catchment area do not have storage facility to store and they also don’t use a warehouse receipt system.

Lack of marketing information: Due to a lack of market information regarding prevailing prices, arrivals etc., most of the producers’ market grains and pulses in the Kheruwala Mandi without studying the price trends.

Adoption of grading: Grading of Maize and Green gram at the producers’ level ensures better prices to producers and better quality to consumers. At present there is no infrastructure available at the farmers’ level for primary processing.

Malpractices in markets: Many malpractices prevail in the markets of Groundnut i.e. excess weighment, delay in payment, high commission charges, delay in weighing and auction, different kinds of arbitrary deductions for religious and charitable purposes etc.

Infrastructure facilities: Due to inadequate infrastructural facilities available with the producers, traders, millers and at market level, the marketing efficiency is affected adversely

Long Supply Chain: The existence of a long chain of middlemen also reduces the producer’s share in consumer’s

rupee.

8.3.4. Agribusiness policy related constraints:

Contract farming: Rajasthan has adopted a model APMC Act, 2007. In Rajasthan Contract farming of desired

variety and quantity as per buyer’s/processor’s need, has been allowed. Buyer/processors may supply inputs

and technical know-how and farmers may produce the crop for sale to buyers at an agreed price. However, this

price shall not be lower than minimum support price and title of land shall remain with farmer. Produce will be

purchased at buyer/processor’s business/factory place. But processors found less interested in registering

under contract farming. Team ABPF discussed contract farming issues with some of the processors and related

challenges are given below:

i. Rule 5 – Each agreement shall be written on stamp paper of the value of Rs.100. This increases cost of

procurement and procurement time.

ii. Rule 9 – Separate registration form shall be filled for each agreement. Large amount of paper work can be

reduced by group registrations or procurement directly from FPCs.

iii. Rule 17-In case the contract farming buyer fails or refuses to purchase the agreed quantity of the agriculture

produce from the contract farming producer, he is to pay the amount of the difference between the agreed



price and the actual sale price of the contracted produce in the market committee concerned to the

producer. Mutual termination of contract should be allowed.

iv. Rule 19 – The contract farming buyer need furnish an undertaking equal to 20% of the value of the

contracted amount. This amount can be reduced and this will motivate big players to participate in contract

farming.

8.4. PIESTEC Framework

Maize can be summarily considered within the adapted PIESTEC framework as follows:

Political

•Legislation required for FPC formation

•Modifications required in the Contract Farming Law

Institutional

•FPC model to be developed for strengthening farmers' cause

•CZRI,KVKs to facilitate supply of inputs viz. HYV seeds, pesticides, etc. to farmers

•Training and handholding of farmers by institutions

•Contract Farming

Economics

•Of high economic significance due to Grain and Fodder value. Cost of production – Rs 25538/ha, Gross earning from grains – Rs 30258/ha, Net earning from grains – 3250/ha, Fodder potential worth Rs 9800 per Ha, Total earning – Rs 13050 incl. of fodder

Social

•cultivated by mostly small and marginal farmers

•production led farming mindset

•need to transform into market led production programme

•less labor intensive crop

Technology

•require farm mechanisation-harvesting equipments

•farm level solar drying systems required

•promote fertigation

•GAP practices should be adopted

Environment

• less water requirement of farmers

• can be grown in Rabi season as well in some parts of Rajasthan

Competition

•Growing demand of maize for food as well as feed •Competition with American maize



8.5. Impact of GST over Maize value chain:

The Goods and Services Tax is one indirect tax for the whole nation. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. It will be levied at every stage of the product distribution chain by giving the benefit of Input Tax Credit (ITC) of the tax remitted in the previous stages. Therefore, the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all previous stages. GST will replace all Central level taxes such as excise, service tax and custom duty as well as state level taxes like VAT, CST and entertainment tax among others. Table 28: Tax Structure

Transaction New Regime Old Regime Remarks

Sale within the state CGST+SGST VAT+ Central Excise/Service tax

Revenue will be shared equally between the Centre and the State

Sale to another state IGST Central Sales Tax + Excise/Service Tax

There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.

The impact on the Food Processing Businesses:

With the latest information suggesting that the minimum GST rates will be 18% on all products.

Implementation of the GST is said to increase the prices of agricultural goods. However, the products will

be able to reach the consumer faster due to state-level taxes such as Octroi and entry taxes which will

significantly reduce the time and hassle of transporting goods across state borders.

GST will also favour the National Agricultural Market on merging all the different taxation on agricultural

goods will improve the marketing and virtual market growth.

Because GST is a consumption tax, it will be levied only when food products are sold by the

manufacturer and not when they are manufactured.

The Confederation of Indian Industries (CII) has also in its representation called for a zero rate tax on

products which have a rate of up to Rs. 10/- and Rs. 20/-. It also demanded that all packaged material

used as inputs by the food processing industry should have a zero-percent rate.

Impact on Restaurants and Food Joints: Service tax liability with the credit of input VAT on goods consumed will get submerged into GST and irrespective of goods and services, the credit of input will be available for adjustment against the output liability. This will further optimize the working capital of these restaurants and consumers can expect the superior quality of goods and services. Please refer to Appendix 4 for product wise GST rates of Food Products.



Chapter 9: Proposed Interventions & Investments

9.1. Intervention areas for value chain strengthening

The unavailability of HYV of maize for farmers is a critical constraint experienced by the farmers. In this context, a

seed production programme need to be launched for availing the services of Raj seeds. Also, limitation in terms of

threshers and harvester combines are apparent. At the post-harvest stage constraints in terms of high moisture

content, storage facility, high level of dirt and impurities in harvested which may be addressed through inputs in

start-up for related enterprises/links with large players like Cargill etc.

There is even lack of drying systems at the farm level which needs to be addressed by the FPC, to be set up with the

support of RACP & ABPF. Dissemination of benefits of direct Purchase licence and apt contract farming modes

are other related interventions.

Table 29: Intervention Plan of Value Chain of Maize along with stakeholders’ matrix

S.n

o

Stakehold

er

Roles &

Responsibilities

Pre-intervention

Constraints Post Intervention Action Action By Timeline

1 Farmers

Land

Preparation

Cultivation of

crops

Harvesting of

crops

Sell the raw

produce

Limited

awareness

of farmers

Availability

of improved

& good

quality

varieties of

Maize

among

producers

To promote both

food and feed

purpose varieties

Farm Information

Dissemination

through District

level exhibition,

Kisan Melas,

Printed materials,

electronic media.

Agriculture

University,

Agriculture

Research

Institute &

Station, Seed

Companies,

Extension team

of RACP

Y1Q1-

Y1Q2

(6

months

after

registrati

on of

FPC)

Farmers

are trained

with

production-

led

extension

approach

till date

Market led extension

approach is necessary to

increase farmers income.

Extension team

of RACP and

Processors

(through ABPF)

Traditional

package of

practices

followed by

farmers

Increasing Research-

Extension –Farmers

linkages by organizing

farmers–scientists

interaction, Field Days and

Extension team

of RACP,

Scientists from

Agriculture

universities and



S.n

o

Stakehold

er

Roles &

Responsibilities

Pre-intervention


Kisan Goshties, Farmers’

Field Schools.

ABPF

agribusiness

experts

Moisture

content in

harvested

maize is

high

Drying facility at farmer level

through Farmer Producer

Company.

RACP and ABPF

During

harvesting

time, prices

collapse

and hence

cold

storage/pac

k house

option

could help

reduce

distress

sale.

Storage facility for farmers

as part of FCSC

RACP, KVK and

ABPF

Lack of

appropriate

post-

harvest

equipment

Promotion of small scale

units with harvesting and

shelling facility; also may be

part of FCSC

RACP and ABPF

Due to

inadequate

facilities of

transportati

on at the

village

level,

producers

are forced

to sell local

merchants

or traders

directly at

low prices

Provision of Pick-

up van as part of

FPC services to

the farmers.

ABPF, RACP

Lack of

scientific

sorting

system and

cleaning/gr

ading

facilities

To make farmer

aware about

quality parameters

of Maize for

processing like

value added

products;

washing/Cleaning

& Grading facilities

RACP, SPs with

inputs from

ABPF



S.n

o

Stakehold

er

Roles &

Responsibilities

Pre-intervention


as part of FCSC/s .

Additionally, mini

pulveriser plants

could also be

established as part

of FCSC/s

Higher level

of dirt and

impurities in

harvested

maize

Provide cleaning and grading facility to farmers as part of FCSC

ABPF, RACP

2 Processor

s

Process the

raw produce

Value

addition

Packaging of

value added

product

Limited

adoption of

direct

procuremen

t and

contract

farming

Setting up

alternate channel

to sell directly from

PC to processor or

large retail shops.

Large Processor/

Buyer and

ABPF, RACP

Y1Q3-

Y2Q2

(6

months

after

registrati

on of

FPC)

Limited

processed

product

available in

the market

which limits

the

marketing

potential of

the

commodity

Facilitate the

entrepreneur

development to set

up small scale

processed product

like Maize powder

ABPF, RACP

Many

existing

processors

and

budding

entreprene

urs are not

aware of

schemes of

the GoI

Including

CLCSS,

cluster

Developme

nt scheme

or

“Sampada”

for

technology

upgrading.

Awareness

seminars for

processors

ABPF, RACP



S.n

o

Stakehold

er

Roles &

Responsibilities

Pre-intervention


3 NGO

Extension

services to

farmers

Disseminate

RACP

Schemes to

the farm level

Distribution

of seeds and

farm kits as

per various

schemes

Hand holding

support to

the farmers

regarding

Lack of

skilled

personnel

Poor field-

farm level

coordinatio

n

Outdated

extension

activities

Lower level

of

interaction

and

adoption of

RACP/govt.

schemes

Training of NGO

field staff on

market led

extension services

Business planning

training

Monthly/Fortnightly

review meetings

with RACP

Feedback of

farmers from

service area

Exposure visits of

NGO staff to

successful FPCs

RACP

ABPF

KVKs

Y1Q1-

Y2Q4

4. RACP

establish the

feasibility of

sustainably

increasing

agricultural

productivity

and farmer

income

integrate

agriculture

water

management

and

agricultural

technology,

Establish

farmer

organizations

(FPCs) and

market

innovations

in selected

locations

Lack of

clarity on

the form of

FPO-

Cooperativ

e or FPC

Selections

of capable

leaders for

the

proposed

FPO

Low level of

awareness

among the

PMU staff

and farmers

regarding

the concept

of FPC

Poor or no

Market

linkages of

the value

chain crops

in clusters

Lack of

active NGO

staff

deployed in

the cluster

Create basic

understanding

among the RACP

PMU staff about

concepts of FPC

Clear

understanding on

fundamental

differences

between FPC &

Cooperative

Create market

linkages by

bringing more big

players and

processors to the

cluster

Conduct training of

the potential

farmer leaders

about FPC and its

functioning

Capacity building

training of the

NGO staff

regarding the

extension services

to be provided to

the farmers

ABPF

RACP

PMU

Line

staff

NGO

Y1Q1-

Y2Q4



In terms of intervention on the production front, productivity is low which is also partly because of inadequate

availability of high yielding varieties. There is, therefore, scope for intervention by the way of introduction of new

high yielding varieties in the region. Line departments under RACP and NGO service-provider may support the

initiatives in terms of dissemination of benefit of going in for new high yielding varieties. Apt amendments in the

contract farming Act could further facilitate this initiative.

Traditional package of practices results in lower yield as against potential. There is therefore need to train farmers

on the best package of practices. This could also be undertaken by stakeholders like large processors.

There have been limited efforts in capacity building of farmer leaders (entrepreneurs) and BODs at the field- level.

In this regard, it may be appropriate for ABPF to enable formation of FPOs to meet minimum scale requirements

for upgrading as well as developing alternate market channels. Also, bank linkages under KCC scheme etc. may be

explored. The RACP and line departments need also work in coordination with the NGO/service providers and the

KVK etc. on high dirt content in harvested gram, harvesting of immature grains and inadequate post-harvest

infrastructure facilities for storage. The storage facility may be established as an FCSC with assistance under the

project.

There is also need for awareness seminars and b2b meets amongst processors and producers on the options for

Special Licence and to source directly from producers (effectively aggregated into FPOs/ FPCs). Scope for re-

orientation of Agri- marketing policy with reduced mandi taxes on direct procurement; and related capacity building

interventions for farmers is a necessity that may be facilitated by the ABPF.



9.2. Indicative Post intervention Value chain Map of Maize

Post Intervention Value Chain: Maize

In the post intervention value chain, FPC intervention needs to be undertaken for replacing the local traders as

well APMC commission agents in Channel 1. There are three channels as in the existing value chain of maize such

as targeting value-added products like multi-grain flour i.e. Ashirvad (by large players like ITC), breakfast cereals

(Kellog’s), second channel targeting large players like Cargill and CP seeds for animal feed while the third channel

targeting the foreign countries for food segment.

As it is clear in the below given proposed value chain map of maize, the FPC intervention would take away the

direct share of 4% in the channel 1 while there would be direct benefit of additional 2% to the farmers. The

remaining stakeholders would remain unaffected as such from the FPC intervention. The FPC intervention

would benefit the farmers by providing them with the appropriate storage facility as well as drying systems (solar

preferably). This would positively impact the post-harvest losses which would reduce to 2-3% as compared to

previously. It would also improve the holding period at the cluster level any FPCs would have an added benefit of

storage system. Enhancing post-harvest practices could potentially lead to higher acceptability in the global

market. Also, the restructured value chain will have PC/s and their FCSC/s replacing Mandis and undertaking

aggregation plus grinding and sorting and packaging services. The PCs need input facilitation, custom hiring and

marketing of produce.


uniform moisture loss. Moreover, the moisture content would be monitored to avoid cracking in the kernel and

hence maintaining the grain quality. Also, due to high average land holding (integration of farmers), large scale

dryers would become financially viable for the farmer. Moreover, the harvesting process would also completely

mechanized, which reduces losses due to post harvest farm activities (threshing, separating, etc.). Storage would

largely be done in the large silos/bins which are monitored & treated regularly to prevent losses from pest attacks.

The transportation would primarily through closed locked and tracked vehicles. This reduces both the natural

losses and pilferage The major role of ABPF- GT as a major influencer and support institution would in this

circumstance also be to carry out capacity building initiatives of the potential leaders (BoDs) of the FPC, NGO

staff and PMU staff line, conducting value chain studies of the crops (market led), plan interventions to improve

the returns to the farmers in the concerned project clusters.



Figure 11: Proposed post intervention map of value chain map of Maize



Introduction to FPC Model

Aggregation is the proposed solution of the constraints farmers are facing at present. It is proposed to form Farmers Producers’ Company by bringing farmers together in the form of voluntary groups of about 15 to 20 active farmers and federating 20 to 25 such groups into a Producer Company. These Producer Companies will be functioning on behalf of member farmers and will strive to undertake a range of activities which will result in added value accruals to farmers and value to farmers produce. To form a producer company, producer groups will be mobilized (in some cases, this initiative may have already been completed by NGO’s).

It is envisaged that an elected committee of members of Producers Groups will form a management committee and oversee the performance of an incentivized manager/CEO. The manager will be trained in technical issues of post-harvest management, marketing and in operating a transparent accounting system. The ABPF will support the operation of the Producer Company, and accelerate the cross learning of best practices.

FPC Development Approach

The FPC development approach may be viewed as depicted below:

Figure 12: FPC Development Approach

Following are the steps to be followed for formation of the FPC:

PRI of the MTG: The MTGs will be made aware on the FPC model through PRI and individual farmers

will be motivated to join the FPC as shareholder through respective MTGs.

Initial discussions with MTG leaders: After PRI is done, initial discussion will be done with the MTG

leaders for further orientation on FPC concept.



Identification of MTG leaders: MTG leaders who show inclination to the concept will be selected in

the executive committee for FPC formation.

Resource mobilization and FPC planning: The executive committee will meet 2-3 times to plan further

activities of FPC viz. crops, strategy for business etc.

Election of BoD and Share collection: 10-12 BoD will be identified along with 2-3 expert directors one

each from Agri, Horti, AH and WS dept. The BoD will decide on share value and initiate collection of

share through MTG leaders.

FPC registration: Following identification of FPC BoD, registration will be done. This may take 1-2

months as DIN no of BoD has to be generated first. Care should be take that all elected BoD should

have PAN no so that there is no delay in paper formalities for registrations.

FPC business: Following registration of FPC, ABPF will prepare business plan for the FPC and facilitate

market linkage for input and output.

Setup of processing/ financing – ABPF will further facilitate establishment of processing unit setup along

with feasibility studies and planning business linkage with market players.

Policy and Management

A FPC will function within the overall policy and regulatory framework as per the Producer Company Act. The

management of a FPC will vest with the elected Board from amongst the members. The provision about

constitution of managing committee will be made in the byelaws. The management of FPCs will be by an elected

Board of Directors. Therefore, the representatives of farmers will actually oversee and manage the affairs of a

FPC..

The selection criteria for membership of FPC may be viewed as follows:

1. A member will express his willingness to become a member of MTG.

2. A member will actively participate in all functions and activities of MTG

3. A member will contribute his equity to the FPC

4. A member will bring all or part of his produce to the FPC for sale.

5. A member will purchase all or part of his farm inputs through the FPC.

6. A member will produce and prepare his produce for marketing as per directions of FPC.

7. A member will contribute his share to the Producer Association as upfront payment for the business

development plan of a FPC as needed.

8. A member will contribute his share to the Producer Company towards the reserves of FPC as

needed.

Illustrative list of components of a common facility of a Producer Company (Food Grain)

Godown for storage, drying platforms

2-3 MT per hour grain cleaning, grading, and packing machinery with shed

Additional need based Agricultural Equipment

Computer with internet connectivity for market information

Display Board with Accessories

Auction Hall

Input Suppliers Shops

Toilets

Drinking water & Electricity



Note: Though the illustrative infrastructure proposed is shown in the above tables, the actual infrastructure to be developed will be need based and on participative consultation process.

Typically, start-up may be involved in secondary and tertiary processing activities while FPO’s may be involved in post-harvest and primary processing activity. In many cases, start-up may emerge firm within FPO members.

The evaluation of success should be evaluated on the parameters as under:

I. PCs operating without financial support by the end of 36 months.

II. The PC operates with a reserve fund to cover short term cash flow deficit and with potential for

reinvestment in various activities

III. The PC has an effective governing structure.

IV. The PC has a transparent accounting system.

V. The PC can function as a working example for other farmer organizations to observe and learn from.

VI. Contribution towards increasing farmers’/members incomes.

FPC Revenue model

The revenue model for typical FPCs may be viewed in terms of revenue from:

1. Input facilitation services (this could imply revenue by virtue of service such as dealership/distributorship

for seeds, pesticides or fertilizers). About 50% of the dealer’s discount may be perhaps is retained by FPC

and 50 % be passed on to FPC farmer member as to reduce their input costs.

2. Processing and storage services through FCSCs to be offered to FPC members and other providers in the

region and user/service change collected (typically) at perhaps the rate of 1 to 3 percent of value of

commodity.

3. Marketing service may be offered in terms of facilitating charges typically @ between 1-2 percent of sales

value.

4. MSP facilitation service in terms of facilitating procurement and supply to NAFED/SFAC etc. after, a 1

percent service charges is levied for such activity by FPCs.

5. NCDEX related farmers trading may be facilitated by FPCs as a risk hedging option and user charges

collected at a negotiated rate with members.

6. Custom hiring services may be provided either through tying up with service providers or including

equipment as part of FCSC.

Working capital service would be in terms of FPC providing and marketing of produce from member farmers.

Here, the FPC may retain the price spread as service charge.

9.3. Outcomes of value chain study

1. Increase in farmers share by 5% through FPC

2. Higher price realization for crops by farmers

3. Lower cost of production adds to the farmer's net profit through

i. Acquire quality inputs at discounted price

ii. Farm Demos on GAP, PoP

iii. Dissemination of advanced technology through contract farming with MNCs & their

likes

iv. Custom hiring to increase farm mechanisation

4. FPC led intervention to establish Processing and storage infrastructure



5. Potential Services by FPC

i. Marketing service with facilitating charges typically @ between 1-2%of sales value.

ii. NCDEX- linked commodity trading with user charges at a negotiated rate

iii. Custom hiring services with nominal charges

iv. MSP facilitation service with 1 % service charges

9.4. Conclusion

This value chain analysis of Maize clearly brings out that unlike any other enterprise, agriculture is critically

dependent on external factors like the bounties of nature for its success; be it unseasonal rain, hailstorm, delayed

monsoon, less rain, no rain, or excess rain, all of which makes agriculture a high risk and vulnerable proposition.

This perpetual environment of high risk and vulnerability has significantly lowered farmers’ confidence and

suppressed their entrepreneurial instincts as was amply reflected in the discussions held over cluster level

meetings.

Till date, farmers have benefitted mainly from government’s input driven schemes while market access

interventions such as mandis have created more barriers (middlemen) than benefits and resulted into market

inefficiencies that eventually exploited farmers. Despite being at the receiving end of market barriers and

inefficiencies for generations, individually, small farmers may perhaps never muster enough strength to overcome

market challenges. In such a scenario, the intervention of establishing Farmer Producer Companies in the clusters

has potential to unleash their suppressed energies and to promote rural entrepreneurship. It would encourage

farmers to collectively delve into market operations to compete and design specific market solutions such as

aggregation and sales of produce, operate custom hiring and composite input sales centres.

For the farmer, increase in input costs, without corresponding increase in output prices, has rendered agriculture

unviable. And, in the absence of any other locally available alternate livelihood options farmers cannot even move

away from agriculture. Thus, RACP along with the market driven intervention of ABPF also aims towards

integration of farmers and help them join hands for a collective cause, assist them to move up the agriculture value

chains as to actively participate in market functions, an unexplored but lucrative territory for them so far. This

would spur vertical business integration and diversify their market portfolios to reduce their vulnerabilities.

Value chain actors or stakeholders decide sale prices of their produce/products and compete effectively in the

markets whereas farmers often depend on Minimum Support Price (MSP) fixed by government agencies to sell

grains. Trader’s cartelisation ensures that MSP becomes the Maximum Gain Price (MGP) fetched by farmers,

further squeezing their revenues. The end result has been a declining contribution of agriculture to the national

economy. It is also true that given farmers’ inability to deal effectively with market forces, in the absence of MSP,

farmers would have been possibly in an much worse off situation.


uniform moisture loss. Moreover, the moisture content would be monitored to avoid cracking in the kernel and

hence maintaining the grain quality. Also, due to high average land holding (integration of farmers), large scale

dryers would become financially viable for the farmer. Moreover, the harvesting process would also completely

mechanized, which reduces losses due to post harvest farm activities (threshing, separating, etc.). Storage would

largely be done in the large silos/bins which are monitored & treated regularly to prevent losses from pest attacks.



The transportation would primarily through closed locked and tracked vehicles. This reduces both the natural

losses and pilferage

The major role of ABPF- GT would in this circumstance also be to carry out capacity building initiatives of the

potential leaders (BoDs) of the FPC, NGO staff and PMU staff line, conducting value chain studies of the crops

(market led), plan interventions to improve the returns to the farmers in the 17 project clusters, develop the

business plan for registered producer companies in clusters, support and assist agri start-ups in the region, and

thus develop overall market linkages. The formation of FPC supported by RACP ABPF, local NGOs and

facilitation centres like KVKs, provides the much needed opportunity to farmers to favourably and positively

change their destiny in near future (years to come).


References

1) Geofin Research Desk, Kochi; Maize Special Report June 2016

(http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf)(retrieved on April

7,2017)


(http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf)(retrieved on April

7,2017)

3) Economic Times, Jan 06, 2016; Government allows duty-free import of maize up to five lakh

tonnes (http://economictimes.indiatimes.com/news/economy/agriculture/government-allows-duty-

free-import-of-maize-up-to-five-lakh-tonnes/articleshow/50465727.cms?intenttarget=no)(retrieved

on April 7, 2017)


(http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf) (retrieved on April

7,2017)

5) Department: agriculture republic of South Africa; Maize production (http://www.arc.agric.za/arc-

gci/Fact%20Sheets%20Library/Maize%20Production.pdf) (retrieved on April 7,2017)

6) Source: Department: agriculture republic of South Africa; Maize production

(http://www.arc.agric.za/arc-gci/Fact%20Sheets%20Library/Maize%20Production.pdf) (retrieved

on April 7,2017)

Maize Production Technologies in India;


7) Department: agriculture republic of South Africa; Maize production (http://www.arc.agric.za/arc-

gci/Fact%20Sheets%20Library/Maize%20Production.pdf) (retrieved on April 7,2017)

8) Maize Production Technologies in India


(retrieved on April 7, 2017)

9)Maize Production Technologies in India



10) Department: agriculture republic of South Africa; Maize production

(http://www.arc.agric.za/arc-gci/Fact%20Sheets%20Library/Maize%20Production.pdf) (retrieved

on April 7, 2017)

11) Cost_Estimate_Of_Some_Principal_Crops_In_Five_Major_Producing_States_During_2008-

09(https://data.gov.in/resources/cost-estimates-some-principal-crops-five-major-producing-states-

during-2008-09/download ) (retrieved on April 7, 2017)

12) Uttam Krishi Salhakars; Farmer Advisory Services

(https://www.indiamart.com/proddetail/farmer-advisory-services-6952486433.html) (retrieved on

April 7, 2017)

http://www.geofin.co.in/ResearchRept/Maize_Special_Report_June_2016.pdf


http://economictimes.indiatimes.com/news/economy/agriculture/government-allows-duty-free-import-of-maize-up-to-five-lakh-tonnes/articleshow/50465727.cms?intenttarget=no

http://economictimes.indiatimes.com/news/economy/agriculture/government-allows-duty-free-import-of-maize-up-to-five-lakh-tonnes/articleshow/50465727.cms?intenttarget=no


http://www.arc.agric.za/arc-gci/Fact%20Sheets%20Library/Maize%20Production.pdf





http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf

http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.pdf


https://www.indiamart.com/proddetail/farmer-advisory-services-6952486433.html


13) Livelihood Initiation For Empowerment (LIFE);

(http://liferajasthan.blogspot.in/2011/04/know-kissan-call-center-1800-180-1551.html)


14) Cost_Estimate_Of_Some_Principal_Crops_In_Five_Major_Producing_States_During_2008-

09(https://data.gov.in/resources/cost-estimates-some-principal-crops-five-major-producing-

states-during-2008-09/download) (retrieved on April 7, 2017)

15) Table 2: Area Production and Productivity of Maize for 2012-2013: Department of

Agriculture and Cooperation(http://www.krishijagran.com/farm-data/farm-

statistics/2014/11/State-wise-Area-production-yield-crops-2011-12-and-2012-13/Area-

Production-and-Yield-of-Maize-during-2011-12-and-2012-13)

16) Table 7: Maize variety production in Rajasthan: List of field crops varieties / hybrids released

and notified 2014; Division of Crop Science, Indian Council of Agricultural Research, New Delhi.

(http://www.iasri.res.in/agridata/15data/chapter2/db2015tb2_3.pdf)

17) Table 15: Within row spacing (cm) at different populations and row widths Source:

Department: agriculture republic of South Africa; Maize production

(http://www.arc.agric.za/arcgci/Fact%20Sheets%20Library/Maize%20Production.pdf)

18) Table 1730: Nutrient Management for Maize: Maize Production Technologies in India

(http://farmer.gov.in/imagedefault/pestanddiseasescrops/normalmaizeproductiontechnologies.p

df)

19) Table 31: Grading at producers level, state wise quantity graded and estimated value during

2014-2015: D.M.I., Faridabad (Agmark grading Statistics 2014-2015)

20) Table 32: Major assembling markets for Maize in important producing states : Post Harvest

Profile Of Maize

(http://agmarknet.nic.in/profile-maize.pdf)

21) Table 33: Arrivals in Rajasthan (Maize) from 01-Apr-2016 To 24-Mar-2017: Market Arrivals;

(http://agmarknet.gov.in/SearchCmmMkt.aspx)

22) Table 34: Cost Components of Maize Sub Offices of Directorate of Marketing and

Inspection. The charges prevalent at the time of survey are indicated in the table

23) Acknowledging inputs from RACP officials, related producers, processors, industry associations, NGOs, ATMA, Dept. of Agriculture and Dr Arjun Verma , Agronomist KVK Jhalawar & Dr Harish Verma SMS KVK Jhalawar

http://liferajasthan.blogspot.in/2011/04/know-kissan-call-center-1800-180-1551.html

http://www.krishijagran.com/farm-data/farm-statistics/2014/11/State-wise-Area-production-yield-crops-2011-12-and-2012-13/Area-Production-and-Yield-of-Maize-during-2011-12-and-2012-13



http://www.iasri.res.in/agridata/15data/chapter2/db2015tb2_3.pdf

http://www.arc.agric.za/arcgci/Fact%20Sheets%20Library/Maize%20Production.pdf


Annexure 1: Stakeholders Consulted over the Study

Producers Processors Traders Government

agencies Others

1. 5 Farmers in Banswara cluster

2. 5 Farmers in Manoharthana cluster

3. 5 Farmers in Bundi cluster

4.5 Farmers in Orai- Bassi cluster

5.5 Farmers in Jakham cluster

1. CP Seeds Pankaj Bairagi Kota 9414777477

2. Rajaram & Brothers Prakash Pahadiya, Mandsaur (M.P) 9425327615

4. Godrej Agrovet Mr. Ranjeewan Sharma Punjab 9780400125

5. Cargill Mr. Sandeep Mishra, Punjab 9987943174

1.Mahindra Karan Anaj Mandi, Kota 9414187882 2. Rakhabchan Lalitkumar, Manoharthana 9414194031 3. Bairulal Mangilal Rathor , Manoharthana 9887104736

4. Lalchand Ashok kumar, Manoharrthana 9414194227

5. Jain Traders Hemant kumar, Bundi 9214316747 6. Laxmi traders Narendra Jaju , Bundi 9414176140

7. Sethia Associates Vinod Sethia, Bundi 8162801776

1.Jitendra Jahangir (DCA) Dep. of Agriculture , Jhalawad 7014812577 2. Nitin Shinde (DC) Dep. of Agriculture, jhalawad 9946229354 3. Ajit Singh (DC) Dep. of Horticulture, Jhalawad 9997496679

4. Mr. Shrikant

Agnihotri (DD

Agriculture),

Chittorgarh

9414428023

5. Krishna Kumar

(DD Agricuture)

Pratapgarh

9521941589

6. Ramesh

Chandra Jharoli

(DD Agriculture)

Banswara

1. SMPCL, Bundi, Abhik, CEO of FPC 2. Kirti Kumar porwal (T.L) NGO, Manoharthan 9166722007 3. Hemraj Verma ( Agriculture Expert) NGO, Banswara 9414159734


9414367801

7. Ratan Lal

Soanki (S.S KVK),

Chittorgarh

9414497988


Annexure 2: List of Central Warehousing Corporation (CWCs) warehouses in Rajasthan

Warehouse Project Description Manager Phone Capacity

BHIWADI C/o Jaquar & Company Pvt. Ltd., SP-496, RIICO Inld Area, Bhiwadi – 301019

A. C. Yadav 01493 297825 4356

ALWAR A-315, NSC, Oppt. ED, Paryware Pvt. Ltd. Co. Alwar

R. N. Meena 0144 23721 3574

BARAN Spl. No. 01 ,RIICO Indl Area, Baran Road, Baran

V. K. Jaiswal 9460079493 5000

BHARATPUR Plot No. G-162 to 165 & F-166 to 171, Brij Ind. Area, Behind Nafed Plant, Phase-II, Hathni Road, Bharatpur

Devendra Prakash

05644-228654 9674

BIKANER Behind Sabzi Mandi, Pugal Road, Unit-I, Bikaner

Prit Pal 0151 2212399 25400

BIKANER-II Opposite Govt. Engineering College, Karni Indutrial Area, Ph.II Bikaner-334004

R. D. Punia 0151 211003 5000

SRIGANGANGR-I Near Power House Sriganganaga-335001

S.S. Brar 0154 2440107 25200

SRIGANGANGR-II Udyog Vihar Plot No. E-194 to202 Sriganganaga-335001

N.K. Chabra 0154 2494403 10000

KESARISINGHPUR C/o ARDC Godown,Mizewali Road,Kesrisinghpur Distt.Srigangar

Dhanwat Singh 01501-233710 10176

HANUMANGARH TOWN

C/o FCI, Opp. Railway Station, Hanumangarh Town

K. D. Dhiman, FCI

13262

HANUMANGARH-I Sector - 8, New Mandi, Hanumangarh Junction, Hanumangarh

J. R. Sharma 01552 260602 21200

HANUMANGARH-II RICCO Phase-II , Opposite RICCO, Water Works, Hanumangarh

Bhart Bhushan 01552 211794 15000

TIBBI 10, GGR, Hanumangarh Road, Tibbi, Distt. Hanumangarh

Anupam Kumar 01539 224111 1000

SITAPURA-I Plot No.SPL-1296,EPIP Sitapura, Ind. Area, Jaipur-302002

S.K. Sharma 0141 2771710 , 2770227

14870


Warehouse Project Description Manager Phone Capacity

SITAPURA-II Plot No.SP-1,RIICO Industrial Area,Sitapura, Jaipur

Y.K. Dubey 0141 2770223 11729

KOTPUTLI Near Cement Factory, Vill.-Ramsinghpura Gopalpura Road,Kotputll, Distt. Jaipur.

Desh Raj 01421 215112 97 5000

JHUNJHUNU Plot No. SP-287 RICCO Industrial Area,

Raghunath Singh

01592 250138 5000

SURAJGARH Bhuana Road, Surajgarh-333029 Rampal Singh 01596 2238349 2868

KOTA I Ind. Area DCM Road, Nr New Grain Market Kota-324007

S N Meena 0744 2363638

36830

KOTA II lndraprasth md. Area, Road,No. 1, Near Daknia Railway Station Kota-324005

S.S.Meena 0744 2438019 49300

KOTA III Plot No. SP-1, Kuber Ind. Area, Ranpur, Kota III

S N Panchal 25000

RAMGANJ MANDI Khairabad Road, Ramganj Mandil Distt.-Kota

OP Mudgil 07459 22264 9893

NAGAUR Nr. All India Radio Basni Road, Nagaur- 341001

R.S. Mathur 01582 241002 7401

PARABATSAR C/o ARDC Godown, Near Old Rly. Station.Parbatsar, Distt. Nagaur

Ram Behari 9460462881 28093

SIKAR Jagmalpura, Via-Katrathal, Post-Bhadwasi ,Sikar-33200 1

Nand Lal Verma 01572 272013 5000

SRIMADHOPUR Hanspur Road, Srimadhopur-332715 Kishore Prasad 01575 251699 20600

DEOLI C/o Juptier Metal Pvt. Ltd., NH—12, Deoli Distt : Tonk 01434 239249

Kailash Narayan

01434-239249 5000

FATEHNAGAR MOR Mills Product, Plot No. H-49 Road No.2, RICCO Indl Area, Fatehnagar-313205

V. P. Singh 02955-220411 3106

Central Warehouse Opposite Krishna Dharma Kanta, Udaipur By Pass. Beawar, Distt. Ajmer

Raj Raj Kumar Sharma

14849

Central Warehouse Katori Wala Tibara, Near Water Works, Tizara Road, Alwar

Rajendra Prasad

1442731026 8133

Central Warehouse Village MOR ,Kushalgarh Distt.Banswara.

D.C. singh 2965274517 3400

Central Warehouse

Plot No.G-162 to 165,F-166 to 171, Behind NAFED Plant, Phase-II, Brij Industrial Area, Hahteni Road, Bharatpur-321301

N. S. Meena 5644228654 9674


Annexure 3: List of State Warehousing Corporation (SWCs) warehouses in Rajasthan

Sr. No

District Name of Warehouse

Warehousing Capacity Utilization including Reservation

Percentage Utilization

Own Constt.

Other than own Constt.

Total

1 Ajmer 1. Ajmer 13350 0 13350 13733 103

2. Beawar 6300 0 6300 5086 81

3. Kekri 3500 0 3500 3704 106

4. Kishangarh 5400 0 5400 4141 77

2 Alwar 5. Alwar 22650 0 22650 18967 84

6. Khairthal 7400 0 7400 3265 44

3 Banswara 7. Banswara 12200 0 12200 7608 62

4 Baran 8. Baran 27520 0 27520 15344 56

9. Antah 9200 0 9200 7472 81

10. Atru 5400 0 5400 1767 33

11. Chhabra 11550 0 11550 2079 18

12. Siswali 6750 0 6750 5304 79

5 Barmer 13. Barmer 6840 0 6840 7533 110

14. Balotra 3600 0 3600 2463 68

6 Bharatpur 15. Bharatpur 22000 0 22000 19499 89

16. Bayana 4700 0 4700 3995 85

17. Nadbai 6950 0 6950 4722 68

7 Bhilwara 18. Bhilwara 6750 8950 15700 16366 104

19. Gulabpura 7550 2000 9550 9505 100

20. Mandalgarh 3600 0 3600 1497 42

8 Bikaner 21. Khajuwala 10800 0 10800 8694 81

22. Kolayat 4050 0 4050 0 0

23. Nokha 2700 8900 11600 12460 107

24. Loonkarasar 5400 0 5400 1510 28

9 Bundi 25. Bundi 24620 0 24620 18536 75

26. Kapren 6750 0 6750 6523 97


Sr. No




Own Constt.


Total

27. Keshoraipatan

6000 0 6000 1161 19

10 Chittorgarh 28. Chittorgarh 17250 0 17250 17656 102

29. Nimbahera 13500 0 13500 13095 97

11 Churu 0 0 0 0 0

12 Dausa 30. Dausa 12900 0 12900 2521 20

31. Bandikui 13680 0 13680 6031 44

32. Lalsot 1260 1620 2880 1218 42

Sr. No


Warehousing Capacity Utilization including

Reservation


Own Const

t.


Total

1 Ajmer 1. Ajmer 13350 0 13350 13733 103

2. Beawar 6300 0 6300 5086 81

3. Kekri 3500 0 3500 3704 106

4. Kishangarh 5400 0 5400 4141 77

2 Alwar 5. Alwar 22650 0 22650 18967 84

6. Khairthal 7400 0 7400 3265 44

3 Banswara 7. Banswara 12200 0 12200 7608 62

4 Baran 8. Baran 27520 0 27520 15344 56

9. Antah 9200 0 9200 7472 81

10. Atru 5400 0 5400 1767 33

11. Chhabra 11550 0 11550 2079 18

12. Siswali 6750 0 6750 5304 79

5 Barmer 13. Barmer 6840 0 6840 7533 110

14. Balotra 3600 0 3600 2463 68

6 Bharatpur 15. Bharatpur 22000 0 22000 19499 89

16. Bayana 4700 0 4700 3995 85

17. Nadbai 6950 0 6950 4722 68

7 Bhilwara 18. Bhilwara 6750 8950 15700 16366 104

19. Gulabpura 7550 2000 9550 9505 100

20. Mandalgarh 3600 0 3600 1497 42

8 Bikaner 21. Khajuwala 10800 0 10800 8694 81

22. Kolayat 4050 0 4050 0 0

23. Nokha 2700 8900 11600 12460 107

24. Loonkarasar 5400 0 5400 1510 28

9 Bundi 25. Bundi 24620 0 24620 18536 75

26. Kapren 6750 0 6750 6523 97


Sr. No




Own Constt.


Total

27. Keshoraipatan

6000 0 6000 1161 19

10 Chittorgarh 28. Chittorgarh 17250 0 17250 17656 102

29. Nimbahera 13500 0 13500 13095 97

11 Churu 0 0 0 0 0

12 Dausa 30. Dausa 12900 0 12900 2521 20

31. Bandikui 13680 0 13680 6031 44

32. Lalsot 1260 1620 2880 1218 42


Annexure 4: Product wise GST rates of Food Products

GST-28%

1. Molasses

2. Chewing gum/bubble gum and white chocolate

3. Cocoa butter, fat and oil

4. Cocoa powder

5. Cocoa chocolates

6. Malt extract (other than for infant use and mixes and doughs of bakers)

7. Waffles and wafers coated with or containing chocolate

8. Extract, essences and concentrates of coffee

9. Mustard flour and sauces thereof

10. Sugar, lactose and glucose syrups

11. Food flavouring material

12. Churan for pan

13. Custard powder

14. Aerated waters containing added sugar or other sweeting matter

GST-18%

1. Condensed milk

2. Malt, whether or not roasted

3. Refined sugar, sugar cubes

4. Sugar confectionery

5. All preparations of cereals, flour, starch or milk for infant use and sold retail

6. Pasta, spaghetti, macaroni, noodles

7. Corn flakes and other cereal flakes

8. Waffles and wafers (other than chocolate coating)

9. Pastries and cakes

10. Extracts, essences and concentrates of tea or mate


11. Soups and broths

12. Ice cream and other edible ice

13. Instant food mixes, soft drink concentrates, sharbat, betel, supari, packaged food

14. Water, including natural or artificial mineral waters and aerated waters not sweetened

15. Ethyl alcohol and other spirits

16. Vinegar and substitutes

17. Curry paste, mayonnaise and salad dressing; mixed condiments and mixed

GST – 12 %

1. All meat in unit containers put up in frozen, salted, dried, smoked state

2. All meat and marine products, prepared or preserved.

3. Butter, ghee, butter oil, cheese

4. All goods under Chapter 20 (preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly)

5. Ketch-up & sauces, Mustard sauces

6. Dry fruits 2

7. Starches

8. Animal fats and oils

9. Fruit and vegetable juices

10. Roasted chicory and coffee substitutes

11. Yeasts and prepared baking powders

12. Namkeens, bhujiya, mixture, chabena

13. Bari made of pulses including mungodi

14. Soya milk drinks

15. Fruit pulp or fruit juice based drinks

16. Tender coconut water (in unit container with brand name)

17. Beverages containing milk

GST – 5 %

1. All fish variants (except seeds of fish, prawn& shrimp) processed, cured, frozen state

2. Ultra-high temperature milk

3. Milk and cream including skimmed milk powder but excluding condensed milk

4. Yoghurt and other fermented milk and cream

5. Chena or paneer in unit container and branded

6. Egg yolk, fresh or dried

7. Natural honey in branded unit container

8. Vegetables frozen or preserved (but unsuitable in that state for immediate consumption)

9. Edible fruits and nuts; peel of citrus fruit or melons, in frozen or preserved state

10. Coffee, tea, pepper, vanilla, cloves, cardamoms


11. Seeds of anise, Maize, cumin

12. Ginger (other than fresh ginger), saffron, turmeric, other spices

13. Cereal groats, meal and pellets in branded unit container

14. Cereal grains worked upon (hulled, rolled, flaked)

15. Meal, powder, flakes, granules and pellets of potatoes

16. Meal and powder of the dried leguminous vegetables (pulses, sago, tamarind)

17. Wheat gluten

18. Soya beans

19. Ground nuts

20. Copra

21. Linseed, rape seeds, sunflower seeds, other oilseeds like mustard, poppy,

22. Flour and meals of oilseeds

23. Sugar beet and sugar cane (frozen and dried)

24. Vegetable fats and oils (groundnut, olive, palm, sunflower oil etc)

25. Beet sugar, cane sugar, khandsari sugar

26. Cocoa beans, shells and paste

27. Mixes and doughs for preparation of bread, pastry and other baker’s wares

28. Pizza bread

29. Seviyan

30. Rusks, toasted bread

31. Sweetmeats

32. Flours, meals, and pellets of meat, fish meant for animal consumption

33. Cashew nuts and cashew nut in shell

34. Raisin 3

35. Ice and snow

GST – Nil %

1. Meat (Other than in frozen state and put up in container)

2. Bones and horn cores, bone grist, bone meal etc., hoof meal, horn meal, etc

3. Fish, prawn and shrimp seeds

4. All fish, fresh or chilled (but not processed, cured and frozen)

5. Fresh milk, pasteurized milk but not concentrated, sweetened

6. Eggs (in shell)

7. Curd, lassi, buttermilk

8. Chena or paneer (except in unit container with brand name)

9. Natural honey (no container-no brand)

10. Fresh fruits and vegetables, roots and tubers (except in frozen state or preserved)

11. Dried fruits


12. Leguminous vegetables, shelled or unshelled

13. Dried leguminous vegetables, shelled, whether or not skinned or split (pulses)

14. Coffee beans, unprocessed tea leaves, fresh spices

15. All cereals (no container-no brand)

16. Cereal grains hulled

17. Flour

18. Atta, maida, besan (no container-no brand)

19. Wheat or meslin flour

20. Cereal flour, groats and meals (no container-no brand)

21. Flour of potato, dried leguminous vegetables (no container-no brand)

22. Oilseeds of seed quality

23. Cane jiggery (gur)

24. Palmyra jaggery

25. Puffed, flattened and parched rice

26. Pappad (except when served for consumption)

27. Bread (branded or otherwise) (except when served for consumption and pizza bread)

28. Prasadam

29. Water (other than aerated, sealed etc)

30. Non-alcoholic toddy

31. Tender coconut powder

32. Acquatic, poultry and cattle feed

33. Salt, all types


Annexure 5: PIESTEC Analysis of Maize

8.5.1. Political circumstance

Typically farmers in Rajasthan have barely 2-3 acres of holdings each. The small and marginal farmers can

hardly be expected to invest in better farming technologies, nor aggregate adequate volumes of

commodities as to develop alternate marketing channels away from typical APMC or multiple-trader led

channel in vogue. There is, therefore, need for aggregation of such farmers into FPOs / FPCs. Typically,

such FPOs / FPCs may have a combined holding of 1000-1500 acres.

8.5.2. Institutional context

The globally preferred high income yielding form of maize is maize seeds and powder. Given the

fluctuations in prices as well as need for technology transfer for high yielding varieties, there is apparently

need for more technical knowledge sharing and its dissemination to the farmers. There are institutes like

Central Arid Zone Research Institute in Jodhpur, Rajasthan Agriculture Research Institute and various State

Agriculture Universities in Rajasthan which are working on the locally feasible, high yielding and pest

resistant varieties of Maize. Their subject matter specialists on Maize can be part of the awareness campaign

for farmers regarding the HYVs, IPM and other advance pre-harvest and post-harvest technologies.

8.5.3. Economics

Less than 20% of corn produced is used for direct consumption. With economic development, cereal

consumption shifts towards more protein rich options and even among cereals, rice and wheat are more

preferred. Hence, the share of direct maize consumption is likely to be on a decline. Value added corn usage

however is becoming popular as snacks and breakfast cereals and is a fast growing market given the

increasing health consciousness of consumers. However, the quality of corn procured and the nutritional

value remains a key concern area. In order to support this growth, initiatives will have to be taken to

encourage growing of better quality corn as well as specialty corn and industry participants need to work

with farmers to educate them with the knowhow and economic benefits. Direct farmer linkages with

corporates can help in building a better procurement pathway for end user companies.

High yields, coupled with remunerative selling prices, are influencing farmers to shift to hybrid maize

cultivation from other local crops.

8.5.4. Social

Small holder farmers, who account for most of the agricultural sector in the regions of Maize, use

rudimentary agricultural techniques, plant haphazardly and pay little attention to the quality of maize and

use of fertilizers. Farmers do not differentiate between seeds and grains and hence they are in a habit of

using stocked grains as seeds for sowing crops in the following season. As a result, productivity has been

extremely low and soil fertility has gradually declined. This further worsens the farmers' situation and keeps

them in a cycle of extreme poverty.


8.5.5. Technology

India is currently among the top five exporters of corn worldwide. However, current yield levels in corn are

much lower compared to other corn growing nations like USA and Argentina. High yielding seed varieties

combined with other seed technologies like drought tolerance coupled with farm practices like disease

control, weed control and irrigation can lead to significant yield improvement. Mechanized harvesting and

post-harvest management can

Also provide additional yield benefits. A multi-pronged export through breeding, agronomics and biotic and

abiotic stress resistance (through biotechnology traits or otherwise) can lead to sustainable yield benefits.

However, access to finance support, information and technological knowhow are areas where cultivators

require support from governments and private organizations working with producers.

India and specifically Rajasthan manufactures only 40 products from maize and starch derivatives whereas

over 800 products are produced in the international markets indicating huge potential for expanding the

application base for maize. In Rajasthan, the mechanical sowing & harvesting penetration has only been 5-

7%. Farm losses (due to poor harvesting practice or ack of timely labour) can potentially be controlled

through mechanization. Increase in thrust on promotion and adoption of mechanical harvesting could

potentially assist in improving productivity and control farm losses. With increasing development in cities,

ageing farmer (currently 40+ in age) and reducing interest of the next generation in farming, the labour

problem is expected to intensify going ahead. Currently, the average land holding is ~3 acres per household

signifying limited of financial ability to afford a mechanical harvester. Going ahead, India is expected to

witness gradual consolidation (through cooperatives and large farmer- small farmer model). Even in

Rajasthan through projects like RACP, FPC models are being promoted. The discussion area should

concentrate around the potential of mechanization despite the adoption being low till now.

Breeding is an integral part of research & development. Evolving breeding programs can not only provide

better products but also at a faster pace. Various technological advancements (marker assisted technology,

molecular breeding, etc.) have been made globally in discovering native traits through efficient breeding

programs. Practices such as disciplined maintenance of historical breeding records and germplasm tags

could significantly reduce the time to market for new product lines. Given its agro-climactic diversity, this

becomes even more relevant in a country like India.

8.5.6. Environment

Maize, the queen of cereals and the most versatile crop with wider adaptability in varied agro-ecologies has

highest genetic yield potential among the food grain crops. Maize is grown in 11.5 lakh hectare areas in the

state with a majority of the production in South Rajasthan. In America maize productivity is as high as 100

quintals per hectare while in Rajasthan it is as low as 15 quintal/hectare. Banswara district has suitable

climate considered apt for growing Maize during Rabi season since the temperature doesn't dips here

beyond a certain level.

8.5.7. Competition

Maize production is growing faster than that of all other cereals, thanks to its growing demand as poultry

feed, as well as for human and industrial consumption. In traditional areas of Rajasthan, the crop is often

grown in marginal eco-regions, primarily as a subsistence crop to meet food needs. In contrast, maize in the

non-traditional areas which are limited in Rajasthan is grown for commercial purposes–i.e., mainly to meet

the feed requirements of the booming poultry sector. Indeed, the demand for maize is spiralling in India.

Historically, demand for the grain has been driven by the poultry and starch industries. But with changing

food habits, the demand for food additives derived from maize is also growing.


Indian maize tends to fall short on key quality indicators such as grain weight and starch content. Average

grain count for Indian maize stands at ~450 grains / 100 grams whereas grain count for American maize is

generally in the range of 295 – 300 grains/ 100 grams making it more suitable for feed industry. Starch

content of American maize is reportedly close to 73% compared to 63 – 67% in Indian maize. Initiatives to

improve quality may be needed for driving demand and this may be addressed through use of better seeds

and agronomic practices.

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Documents

Value Chain Analysis Maize - Rajasthan · 2019-12-14 · A SWOT analysis of the gram’s value chain highlights that Rajasthan is the largest producer of white maize in the country