Post on 10-Sep-2014
VALUE CHAIN ANALYSIS OF OFF SEASON
VEGETABLES IN UTTRAKHAND
SUBMITTED TO
GTZ, RED PROGRAM, UTTRAKHAND
SUBMITTED BY
MANOJ SINGH, CONSULTANT
CONTENTS
Page no.
CHAPTER 1: INTRODUCTION 5
I. Background 5
II. Objectives 5
III. Methodology 6
3.1. Desk Research 6
3.2. In-depth interview 6
3.3. Group discussion 6
CHAPTER 2: OFF-SEASON VEGETABLE PRODUCTION IN UTTRAKHAND 7
I. General Information 7
1.1 Introduction of Production Area 7
1.2 Off Season Vegetables Production 7
II. Market Information 8
2.1. Wholesale Market 13
CHAPTER 3: VALUE CHAIN ANALYSIS OF DIFFERENT OFF SEASON
VEGETABLES UNDER DIFFERENT MODELS IN SELECTED DISTRICTS OF
UTTRAKHAND
17
I) Value Chain Analysis for different Off-Season Vegetables of Dhari and
Ukhalkanda Blocks of district Nainital of Uttrakhand (CHEA, Nainital
Model)
17
1.1. General Information 17
1.2 Off-season vegetables value chain mapping 19
1.3. Marketing Channel Followed 21
1.4. Description of value chain’s members 21
1.5. Actors and their Functions in the value chain of OSV 24
1.6. Various marketing cost components in the value chain of OSV 25
1.7. Structure marketing margin between farmers and wholesale level 26
1.8. Price Mapping for Off-season vegetables under CHEA model 28
1.9. SWOT Analysis – CHEA Model 29
II. Value Chain Analysis of different Off-Season Vegetables of Kapkot Block
of district Bageshwar of Uttrakhand (SHAMA Farmers’ Federation Model)
30
2.1. General Information 30
2.2. Off-season vegetables value chain mapping 32
2.3. Marketing Channel Followed 33
2.4. Description of value chain’s members 33
2.5. Actors and their Functions in the value chain of OSV 37
2.6. Various marketing cost components in the value chain of OSV 38
2.7. Structure marketing margin between farmers and wholesale level 39
2.8. Price Mapping for Off-season vegetables under SHAMA Fed. model 41
2.9. SWOT Analysis – SHAMA Fed. Model 42
III. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal,
Ramgarh and Dhari Blocks of district Nainital of Uttrakhand (Vinodhara
Agritech Model)
43
3.1. General Information 43
3.2. Off-season vegetables value chain mapping 45
3.3. Marketing Channel Followed 46
3.4. Description of value chain’s members 46
3.5. Actors and their Functions in the value chain of OSV 49
3.6. Various marketing cost components in the value chain of OSV 50
3.7. Structure marketing margin between farmers and wholesale level 51
3.8. Price Mapping for Off-season vegetables under Vinodhara Agritech
Model
54
3.9. SWOT Analysis – Vinodhara Agritech Model 55
IV. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal,
Ramgarh and Dhari Blocks of district Nainital of Uttrakhand (CHIRAG
Model)
56
4.1. General Information 56
4.2. Off-season vegetables value chain mapping 59
4.3. Marketing Channel Followed 60
4.4. Description of value chain’s members 60
4.5. Actors and their Functions in the value chain of OSV 64
4.6. Various marketing cost components in the value chain of OSV 65
4.7. Structure marketing margin between farmers and wholesale level 67
4.8. Price Mapping for Off-season vegetables under CHIRAG Model 68
4.9. SWOT Analysis – CHIRAG Model
70
V. Value Chain Analysis for different Off-Season Vegetables of Lamagara
and Dhauladave Blocks of district Almora of Uttrakhand (ULIP, Almora
Model)
71
5.1. General Information 73
5.2. Off-season vegetables value chain mapping 74
5.3. Marketing Channel Followed 74
5.4. Description of value chain’s members 74
CHAPTER 4: CONSTRAINTS/ OPPORTUNITIES AND CONCLUSION 76
I. Constraints 76
II. Opportunities 76
III. Conclusion 76
IV. Appendices 77
CHAPTER 1: INTRODUCTION
I. Background
The ”REGIONAL ECONOMIC DEVELOPMENT PROGRAM in Uttarakhand” is the most recent
initiative of the Federal Republic of Germany in promoting Indo-German economic cooperation by
assisting a relatively backward region in India to bridge the existing economic divide between “the hills
and the plains” by complementing and supporting ongoing development efforts. The RED program
envisages a steady flow of technical assistance from the German side which is intended to
complement the Government of India’s reform policies geared towards a more inclusive growth and
reducing poverty by generating income and employment, particularly for the rural and marginal groups
in Uttarakhand.
Following a market –driven approach, the program focuses on the development of selected value-
chains and clusters with potential for inclusive growth, the creation of improved framework conditions
for pro-poor market development and the improvement of market access for small and medium –sized
enterprises and producer organizations. The program also emphasizes on regional marketing and the
promotion of Uttarakhand as a business location.
The program is anchored in the Department of Rural Development of the GOU in cooperation with
German Technical Cooperation (GTZ).
In recent times the Indian economy has witnessed rapid economic growth and transformation.
However the impact of this phase of economic resurgence continues to be limited to certain “sun rise
“sectors. There still is a large cross section of the population that continues to remain untouched by
the general spell of economic transformation. As a result of this overbearing phenomenon, today, the
challenge lies in improving market access for large parts of the population, particularly rural and / or
deprived groups, thus enabling them to grasp opportunities embedded in the ongoing economic
development.
Such challenges are especially evident in the new state of Uttarakhand, which is characterized by a
dual economic structure: agricultural subsistence economy in the hilly regions and dynamic industrial
development in the plains that remain largely disconnected, thereby reinforcing the already existing
economic and social disparities. To break this deadlock a concerted drive is required to improve upon
the framework conditions and identify promotional instruments that foster the development of local
enterprise and their integration in sustainable value chains; all leading to the creation of income and
employment opportunities.
The present study was carried out to analyze the economics aspects of the Off Season Vegetables
(OSV) value chain in selected districts of Uttrakhand.
II. Objectives
• To collect relevant information from growers to consumers on current farming and marketing
practices of OSV in the region.
• To define essential players in OSV value chain, then to map flowchart for different marketing
channels and to evaluate roles of particular players in the chain.
• To identify the overall value added generated by the chain and shares of value addition at
different stages
• To gather data and information on the production and marketing costs at each stage of
the chain, and the cost structure along the chain stages
• To identify the cost drivers
• To assess the performance of operators (utilization of productive capacity, productivity,
profitability)
III. Methodology
By approval of GTZ and through identification of different stakeholders, value chain study on OSV
has been carried out by adopting following approach:
a. Desk Research: Relevant information from different resources such as annual
reports of the organizations, reports from workshops, conferences had been collected
and presented in accordance with the objectives of the study.
b. In-depth interview: Oral interviews had been carried out for individuals or
representatives of particular organizations in order to obtain reliable information or
experiences regarding OSV cultivation and marketing. Players in OSV value chain
like input suppliers, aggregators in cultivated area, wholesalers in cities, retailers and
consumers had been identified. Reliably collected information had been subsequently
analyzed in such a manner required by objectives of investigation.
c. Group discussion: Information regarding to cultivating and marketing practices of
water melon had been obtained from growers through field visit, farmers’ group
discussions in order to learn problems and needs of growers. These information had
also been analyzed and presented in this report.
CHAPTER 2: OFF-SEASON VEGETABLE PRODUCTION IN UTTRAKHAND
I. General Information
1.1 Introduction of Production Area
The present study is confined to some selected blocks of Nainital, Almora and Bageshwar districts of
Uttrakhand which are considered as main production areas of OSV in Uttrakhand. Within these
areas, different models of off season vegetable production has been in operation, these models are
being run by different organizations such as NGOs, Govt. Organizations, entrepreneurs etc.
Figure 1. Map of Uttrakhand showing the OSV growing region
1.2 Off Season Vegetables Production
Uttrakhand is the home for cultivation of all kinds of vegetables, which are grown in the different
altitudinal zones and in all the geographical locations. In addition, diversity in the vegetable crops can
be observed everywhere. In terms of production, some areas are producing high quality and quantity
of vegetables but the production is not as much as can be desired keeping favourable geo-
environmental conditions in view. The villages, which are located in the highland, are exporting
vegetables, particularly potato, in the regional market and earning high income. But at the same time,
most of the regions in the mid-slopes are producing vegetable domestically while the agro-ecological
conditions are quite suitable for their high production.
The hill areas are capable of growing off-season vegetables that have a great demand in the plains. A
related advantage for Uttarakhand is its relative proximity to Delhi and other north Indian urban
centres that have an increasing demand for fruits and vegetables.
Table 1. Off-Season Vegetables major growing regions and their time of production in
Uttrakhand
S.No. Off-Season
Vegetable
Months of Production Growing Region
1 Cauliflower July – September Garampani, Hartapa, Hali, Sunkiya
2 Tomato July – August Garampani, Hartapa, Hali, Sunkiya
3 French Bean July – September Bhimtaal, Garampani, Chafi, Hartala, Hali,
Sunkiya
4 Capsicum July - September Suyalbari, Garampani, Hartapa, Hali, Sunkiya
Source: APMC, Haldwani, Nainital
Pea, Cabbage, Cauliflower, French Bean, Tomato and Capsicum are the main off-season vegetables
grown in the region (Table 1). The production time ranges from June-September.
II. Market Information
Uttrakhand and Himachal Pradesh states have comparative advantage of off-season vegetable
production in India. In Uttrakhand, wholesale F&V market at Haldwani, Distt. Nainital is one of the
biggest wholesale market where large part of production of off-season vegetables from Uttrakhand
comes. Seasonal pattern of off-season vegetables arrival at wholesale market in Haldwani (Year
2008-09, Figure 2) revealed that arrivals of off-season vegetables during June – September months
are lowest due to low availability of produce during that time which is considered as main
production time for off-season vegetable production in Uttrakhand. Reasons for low availability at
wholesale market is due to production constraints (limited quality input use, lack of irrigation
facilities), production risks are high due to climatic risks (rainy season), plant diseases risk, poor post
harvest management (absence of sorting, grading etc operations), local consumption, presence of
organized retailers such as Mother Dairy, F&V Unit for long period. Due to low level of arrivals of off-
season vegetables in June – September months, these vegetables got highest prices in the wholesale
market (Figure 3).
Figure 2. Seasonal pattern in Off-Season Vegetables arrivals in wholesale market at Haldwani
(Year 2008 – 09)
Highest Volume Arrival: February – March
Lowest Volume Arrival: September – October
Highest Volume Arrival: August - September
Lowest Volume Arrival: May – June
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Tomato
Tomato
0
5000
10000
15000
20000
25000
Cabbage/ Cauliflower
Cabbage/ Cauliflower
Highest Volume Arrival: November
Lowest Volume Arrival: July – August
Highest Volume Arrival: June
Lowest Volume Arrival: February
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Green Pea
Green Pea
0
50
100
150
200
250
300
350
400
450
500
French Bean
French Bean
Figure 3. Seasonal prices of Off-Season Vegetables in wholesale market at Haldwani (Year 2008-
09)
Highest Price: July - August
Lowest Price: November
Highest Price: June - July
0
100
200
300
400
500
600
700
800
900
1000
Tomato
Tomato
0
50
100
150
200
250
300
350
400
450
Cabbage/ Cauliflower
Cabbage/ Cauliflower
Lowest Price: January – February
Highest Price: October – November (Arrivals during July – September is very low)
Lowest Price: January – February
Highest Price: April - May
Lowest Price: September
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Green Pea
Green Pea
0
100
200
300
400
500
600
700
800
French Bean
French Bean
2.1. Wholesale Market
Haldwani is the main wholesale market for fruits and vegetables for the farmers of the region.
Therefore, understanding the wholesale market and it’s functionaries is important. Following are the
main stakeholders in the market:
2.1.1. Traders (������
): They procure OSV directly from the farmers/ their agents in villages during
OSV production time. They generally do buying and selling only and charges commission for the
produce they procure (around 5.5 %). The arrival of OSV is generally irregular on per day basis. There
are around 400-500 traders in the wholesale market.
2.1.2. Loaders: Since the volume of arrival of OSV is scattered in the wholesale market, loader
performs the function of collecting the produce from traders and charges his commission (around 4-
5 %). They do procurement only for big volume demanded from other wholesale markets outside
the state such as Lucknow, Meerut, Delhi, Faridabad, Agra, Bareily etc. There are around 50-60
loaders in the market. They do procurement of av. 6-7 truckload of OSV during production time.
2.1.3. Graders: These are labours who do sorting, grading and packing as per requirement of the
buyer, they charge around Rs. 3 per crate and Rs. 5 to Rs. 7 per gunny bag.
Figure 4. Tomatoes being graded in Wholesale Market (Haldwani)
2.1.4 Packers: They only provide packaging material as per requirement of the trader/farmer/buyer.
These packing materials are gunny bags (costing around Rs. 8-10) and wooden boxes (costing around
Rs. 15-20).
Figure 5. Wooden boxes for transportation
2.1.5. Transporters: They provide transportation facility for sending produce to far off markets (av.
Cost is around Rs.6000/- for 5-6 tons produce for a distance of 300 Km and that takes around 8-10
hrs to reach the final destination, Table 2)
Figure 6. Truck load of OSV
Table 2 . Transportation cost of tomatoes to various destinations
S.No. Packing Units Destination Cost (Rs.)
1 512 crates (26 Kg per crate) Delhi 7500
2 216 crates Meerut 3800
2.1.6. Labours: There are general labours in the market yard who performs the function of loading,
unloading, grading and sorting as per requirement.
2.1.7. Weighing Operator: The operator is located at the gate of the market yard and does weighing
of transport carriage with produce and without produce (after the produce is kept in the market),
they charge as per the transport carriage. For example; for tempo (3-5 MT Capacity) charges are
Rs.10/-, for pick up vehicle (1-2 MT Capacity)charges are Rs.15/- and for truck (6-8 MT Capacity)
charges are Rs.30/-
Figure 7. Weighing Machine at the entry of wholesale market (Haldwani)
Figure 8. Digital display of market information at Haldwani wholesale level (not working regularly)
Figure 9. Weighing balance (possibility of human error in weighing is more)
Figure 10. Commission chart of APMC, Haldwani
There are certain unaccountable errors w.r.t. exact volumes, prices, commission charges made at
wholesale level. These errors are might be due to error in weighing at trader level due to use of old
weighing machines which are being operated by hand (Figure 9) and weighing of carriage at the
entrance of market yard (Figure 7), overcharging of commission while APMC, Haldwani has fixed
commission charges rates as per APMC, Uttar Pradesh 1964 Act (Figure 10). Even though market has
digital market information system (Figure 8) but prices are being displayed not on regular basis.
CHAPTER 3: VALUE CHAIN ANALYSIS OF DIFFERENT OFF SEASON VEGETABLES UNDER DIFFERENT
MODELS IN SELECTED DISTRICTS OF UTTRAKHAND
II) Value Chain Analysis for different Off-Season Vegetables of Dhari and Ukhalkanda Blocks of
district Nainital of Uttrakhand (CHEA, Nainital Model)
1.1. General Information
Central Himalayan Environment Association, an NGO working in the Dhari and Ukhalkanda blocks of
district Nainital, Uttrakhand in the area of off-season vegetables particularly w.r.t. improving the
production and marketing processes.
Figure 11. Production of OSV in Dhari Block villages
Blocks Covered: Dhari and Ukhalkanda
Villages: 33
Main Market: Haldwani
Potential future markets: Bhawali, Nainital, Bhimtaal, Almora
Table 3. Basic details related to crop production and post harvest operations
S.No. Particulars Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Av. no. of
farmers
involved in
Off-Season
Vegetable
Cultivation
2500 2500 400 300 600 400
Av. Land
devoted to
off-season
(nalis per
crop)
5.78 3.57 2.72 1.02 2.89 1.02
Ha./crop
289.00 178.50 21.76 6.12 34.68 8.16
Production
volume (t)
1806.25 2454.38 190.40 38.25 476.85 20.40
Av. Yield
(t/ha.)
6.25 13.75 8.75 6.25 13.75 2.50
Harvesting
time
March -
April
Sept. –
Nov.
Aug.-Sept. Jun. -
Aug.
June-
Nov.
July-Sept.
Hybrid /
Improved
variety
Arkel Varun Snow
Crown
Anupama Himsona,
Manisha
Bharat, Tanvi
Post harvest
operations
followed
At farm level - - - - - -
At wholesale
level
At retail level Sorting Sorting Sorting Sorting Grading Sorting
Post harvest
losses (%)
At farm level 5 - - - - -
At wholesale
level
5 5 5 - 5 5
At retail level 10 5 5 5 10 10
Post harvest
losses reason
Moistur
e loss
Crushing Crushing Moisture
loss
Crushing
and
Rotting
Rotting during
transportation
Packing Jute Bag Jute Bag Jute Bag Jute Bag Wooden
Box
Jute Bag
Packing
capacity (Kg)/
unit
30 - 35 28 - 35 25 30 - 32 18 - 20 10 - 20
Table 3 shows the production volume (average) of different OSV in the region and other details of
production and post harvest processes in the region. It has been observed that primary post harvest
operations are being carried out at retail level only and due to which there are huge post harvest
losses from farm to retail level (around 20 % in pea, 15 % in tomato and capsicum).
1.2
O
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(in
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)
Ext
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Pro
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(CH
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1.6. Marketing Channel Followed:
Farmers → Aggregators→ Wholesalers → Retailers/ Supermarkets → Consumers
This is the main marketing channel followed in CHEA model, farmers send their produce to aggregator/
village commission agent, who is in touch with wholesalers at Haldwani market and sends the produce to
them. From Haldwani market, the produce is sold to retailers/ other wholesale markets (Lucknow, Meerut
etc) and finally to consumers.
1.7. Description of value chain’s members
1.7.1. Off-season vegetable growers
Through direct observation and discussion with farmers, the results showed that:
• Average area under off-season vegetable production per farmer is around 17 nalis/ farmer (50 nalis
= 1 ha.), farmers practice crop rotation in their fields as follows:
January – Potato
June – Tomato, Cabbage, Cauliflower
July (end) - Pea
• Most of the farmers are dependent upon Haldwani Mandi Traders for seed supply and are not
aware of the latest varieties for production; very few progressive farmers are buying seeds directly
from input suppliers.
• Farmers follow the cultivation procedure as sowing of seeds, spraying of pesticide and harvesting of
produce at the end.
• Farmer’s knowledge regarding scientific cultivation of off-season vegetable is very limited.
• Most of the farmer’s are not aware of soil sampling for soil testing even though Govt. Department
is doing soil testing but farmers are not aware of further recommendation to be followed even
after soil testing.
• Micronutrient deficiency (Curds becomes bluish colour during March sown cauliflower due to
deficiency of molybdenum), heavy rainfall during growing season (improper germination of pea
seeds), diseases (French bean turns yellow due to wilt) are some of the factors that leads to low
level of production.
• Most of the farmers take advance from Haldwani mandi traders (70% as advance) before crop is
cultivated and are under debt. It was found that most of the farmers have debt of Rs.10,000 –
Rs.20,000.
• There is complete absence of primary post harvest operations (sorting/ grading etc) by farmers.
• Farmers are not aware of the market rates, whatever information is supplied by aggregator/ village
commission agent; he has to rely upon them.
• As farmers grow only cash crops, cereals (wheat/rice) have been supplied by Haldwani mandi
traders to the farmers.
• Besides off-season vegetables, farmers do cultivation of potato, lime, fruit crops such as peach,
Khumani (wild apricot) etc.
1.7.2. Aggregator/ Village Commission Agent
He is the main link between Haldwani Mandi traders and farmers. He is on the roadside where farmers
brought their produce. He performs the operation of loading, unloading, putting marks on the packing units
(Name of the farmer and name of the trader to whom it should be sent, figure 12).
Figure 12 . Name of the farmer and trader (as symbol) is marked on packing
He charges around Rs. 4-5/ packing unit. He also performs the function of information provider to traders
about the production level in the fields, consumable requirements of the farmers etc. He is also in touch
with transporters for loading of produce.
1.7.3. Transporters
Transporters act as one of the main link between production area and market. Transportation is mainly
done at two levels:
i) Produce loaded on animal (av. Charges @ Rs. 10 per packing unit)
ii) Since the production is scattered and small quantities from different fields, transporters
collects produce from collection points through aggregator and charge around Rs. 8 - 11/
packing unit produce for a distance of 80 Km upto Haldwani Mandi.
1.7.4. Wholesalers
Village commission agent sends the produce to wholesalers in Haldwani Mandi. A wholesaler knows the
production statistics of farmers produce through village commission agents. He also knows the demands of
the farmers, his requirements for consumable items, monetary support. The traders in Haldwani mandi also
provides input services to the farmers and maintains their accounts records for each farmer. Farmers are
under debt of these traders as they are over dependent on them for their day to day requirements. Besides
Haldwani, now wholesalers are also coming up at Bhawali region (presence of 3-4 wholesalers) which is
near to the production area (around 40-50 km distance as compared to 100 km distance to Haldwani).
1.7.5. Retailers
Retailers at hawkers level, organized retail level etc have tie up with wholesalers at Haldwani mandi and
they dont’ have any links with farmers. The price difference of most of the produce between wholesalers
and hawkers ranges between 25-35 % depending upon the production volume. Recently, due to
intervention of NGOs, some of the vegetables (other than OSV) have been sold at Nainital and Bhimtaal
areas at retail level that holds promising future.
1.7.6. Consumers
Consumption is at two levels i.e. direct consumers who purchase produce from hawkers at retail level and
indirectly through hotels and Restaurants.
1.5
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Sm
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Se
llin
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nsp
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by
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k u
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1.6. Various marketing cost components in the value chain of OSV
Various marketing cost components (Table 4) for OSV such as packing, transportation, commissions,
wastages, miscellaneous charges were taken into consideration. Table revealed that highest marketing cost
was found in tomato (Rs. 6.64 per Kg or 33.20 % of wholesale price and lowest in French bean (Rs.3.75 per
Kg or 20.83 % of wholesale price)
Table 4. Various marketing cost components in the value chain of off-season vegetables
No.
Cost factors
(Rs./kg)
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
1 Packing 0.31 0.32 0.40 0.32 1.58 0.67
2 Transportation cost
(animal drawn cart)
0.46 0.48 0.60 0.48 0.74 1.00
3 Transportation cost
(Roadside to
Haldwani Mandi)
0.34 0.25 0.32 0.35 0.42 0.53
4 (2+3) Total Transportation
Cost
0.80 0.73 0.92 0.83 1.16 1.53
5 Aggregator
Commission
0.15 0.16 0.20 0.16 0.26 0.33
6 Farm wastage 1.50 0.00 0.00 0.00 0.00 0.00
7 Wholesale wastage 1.50 0.68 0.68 0.00 1.00 1.10
8 Unloading charges at
mandi (Rs./unit)
0.06 0.06 0.08 0.06 0.05 0.13
9 Weighing charges @
Rs. 0.75 / unit
0.02 0.02 0.03 0.02 0.04 0.05
10 Stationary charges at
mandi @ Rs.0.50/ unit
0.02 0.02 0.02 0.02 0.03 0.03
11 Weighing error @ 5 % 1.50 0.68 0.68 0.90 1.00 1.10
12 Commission rate
charged to farmer @
8 % (Rs./Kg)
2.40 1.08 1.08 1.44 1.52 1.20
13
(8+9+10+
11+12)
Total Commission
Charges at Wholesale
level (Rs./Kg)
4.00 1.86 1.89 2.44 2.64 2.51
14
(1+4+5+6
+7+13)
Total Marketing Cost
(Rs./Kg, this cost
excludes Input Cost)
8.26 3.75 4.09 3.75 6.64 6.14
1.7 Structure marketing margin between farmers and wholesale level
Within the marketing cost, the share of packing, transport a
at farm and wholesale level and commission rate
the cases, commission rate at wholesale level cha
total marketing cost) contributes most to the total marketing cost this was followed by transportation cost
in most of the cases (highest in capsicum @ 24.92 % of the total marketing cost)
The marketing cost at wholesale market level comprises of many factors i.e. 8% (2.5 % mandi tax + 5.5 %
commission by trader) commission, stationary charges, unloading charges at wholesale market (mandi),
weighing charges and weighing errors (hidden cost
transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers have to
bring their produce at road level through donkeys (produce loaded on animals) which sometime
than the transportation from road to wholesale market.
Figure 13. Structure marketing margin between farmers and wholesale level
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Structure marketing margin between farmers and wholesale level
the marketing cost, the share of packing, transport at two levels, aggregator’s commission, wastages
level and commission rate at wholesale level charged to farmer was analysed.
the cases, commission rate at wholesale level charged to farmers (highest in French bean @ 65.07 % of the
total marketing cost) contributes most to the total marketing cost this was followed by transportation cost
in most of the cases (highest in capsicum @ 24.92 % of the total marketing cost), Figure 13
The marketing cost at wholesale market level comprises of many factors i.e. 8% (2.5 % mandi tax + 5.5 %
commission by trader) commission, stationary charges, unloading charges at wholesale market (mandi),
weighing charges and weighing errors (hidden cost factor) and all the cost are born by farmers. In case of
transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers have to
bring their produce at road level through donkeys (produce loaded on animals) which sometime
than the transportation from road to wholesale market.
. Structure marketing margin between farmers and wholesale level
Commission at wholesale
level charged to farmers
Wholesale wastage
Farm wastage
Aggregator Commission
Transportation
Packing
t two levels, aggregator’s commission, wastages
charged to farmer was analysed. In all
rged to farmers (highest in French bean @ 65.07 % of the
total marketing cost) contributes most to the total marketing cost this was followed by transportation cost
, Figure 13.
The marketing cost at wholesale market level comprises of many factors i.e. 8% (2.5 % mandi tax + 5.5 %
commission by trader) commission, stationary charges, unloading charges at wholesale market (mandi),
factor) and all the cost are born by farmers. In case of
transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers have to
bring their produce at road level through donkeys (produce loaded on animals) which sometimes cost more
1.8
. Pri
ce M
ap
pin
g f
or
Off
-se
aso
n v
eg
eta
ble
s u
nd
er
CH
EA
mo
de
l
Pri
ce m
ap
sta
ted
th
at
farm
er’
s sh
are
in
en
d p
rice
in
OS
V i
s lo
we
st i
n C
ap
sicu
m (
31
.18
%)
an
d h
igh
est
in
Pe
a (
67
.13
%)
wh
en
all
the
fa
cto
rs o
f p
rod
uct
ion
an
d o
the
r co
st f
act
ors
are
ta
ken
in
to c
on
sid
era
tio
n.
CR
OP
Pe
a
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
20
.14
0
.31
0
.80
3
0.0
0
S
ha
re o
f e
nd
pri
ce
(%)
67
.13
1
.03
2
.67
2
9.1
7
Ca
bb
ag
e
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
9.0
2
0.3
2
0.7
3
13
.50
S
ha
re o
f e
nd
pri
ce
(%)
66
.81
2
.37
5
.41
2
5.4
1
Ca
uli
flo
we
r P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
7.4
1
0.4
0
0.9
2
13
.50
S
ha
re o
f e
nd
pri
ce
(%)
54
.89
2
.96
6
.81
3
5.3
4
Fre
nch
Be
an
P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
10
.25
0
.32
0
.83
1
8.0
0
S
ha
re o
f e
nd
pri
ce
(%)
56
.94
1
.78
4
.61
3
6.6
7
To
ma
to
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
9.7
2
1.5
8
1.1
6
20
.00
S
ha
re o
f e
nd
pri
ce
(%)
48
.60
7
.90
5
.80
3
7.7
0
Ca
psi
cum
P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
6.8
6
0.6
7
1.5
3
22
.00
S
ha
re o
f e
nd
pri
ce
(%)
31
.18
3
.05
6
.95
5
8.8
2
FA
RM
ER
PA
CK
ING
TR
AN
SP
OR
TW
HO
LES
ALE
1.9. SWOT Analysis – CHEA Model
Strength: The region is very well suited to off-season vegetable production and CHEA has created 31
FIGs (Farmers Interest Groups) i.e. 20 farmers/ group in the region and cluster approach has been
initiated, they have also created CHEA Utpadak and Vipanan Samuh (Producer and Marketing
Cluster) which is at nascent stage. They have also started farmer’s retail centre at Bhimtaal recently
with the support of NABARD. Further to this, direct marketing by farmers to Nainital and Almora
markets have been explored recently which shows good results and farmers are getting good prices
for their produce.
Weakness: Farmers are not aware of the grading and quality standards of different off season
vegetables cultivated in the region. Transportation from field to market is cumbersome process.
Farmers are dependent upon traders for inputs and marketing of produce. There is complete lack of
market intelligence at farmer’s level; they don’t know the prices of the off-season vegetables during
production time. Due to fragmentation of land and greater distance from field to road,
transportation cost is generally high and collective marketing by farmer is totally absent. Farmer’s
don’t have any infrastructure where primary post harvest operations could be done together and
storage could be possible.
Opportunity: Since cluster approach (CHEA Utpadak and Vipanan Samuh) has been defined by
Nainital based NGO, further improvement in value chain is possible through creation of producer
company/ cooperative etc. Nainital, Bhimtaal, Ulmora etc are tourist places and these places are
nearby to the production area, there is good demand of off-season vegetables in these places and
presence of retail centre could further shortened the intermediateries in the trade and hence
margins of farmers could further be improved.
Threat: Farmers are dependent upon Haldwani traders for inputs for production and other
consumables for their family. They are also under debt of these traders therefore it will be difficult
for them to do marketing on their own. Presence of CHEA Utpadak and Vipanan Samuh (Cluster) is
an important step in collective marketing but their sustainability needs to be defined properly so
that even if the NGO stops facilitation, the cluster could sustain on its own.
II. Value Chain Analysis of different Off-Season Vegetables of Kapkot Block of district Bageshwar of
Uttrakhand (SHAMA Farmers’ Federation Model)
2.1. Background and General Information
Ministry of Agriculture, Govt. Of India supported a project “Samaikit Udyanik Vikas Pariyojna” being
run by CHEA, an NGO in Kapkot block of Bageshwar district to increase the production of
horticultural produce in the region. Initially the project was run by an NGO (for 5 years) and later on
handed over to farmers federation (Daanpur Krishak Maha Sangh). Farmers of the region felt the
need of market after the project and therefore collection, grading and marketing centre (retail outlet
being run by farmers federation) was established with the support of Horticulture Department and
State Government.
Figure 14. Collection, Grading and Marketing Centre of Farmer’s Federation at Bageshwar
Block Covered: Kapkot
Villages: 36
Nearby Market: Bageshwar
Av. Distance of Market from Field: 55 Km
Table 5. Basic details related to crop production and post harvest operations
S.No
.
Particulars Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
1 Av. no. of
farmers
involved in
Off-Season
Vegetable
Cultivation
400 400 350 200 450 200
2 Area under
cultivation
(ha.) – (Av. 2.5
nalis/ farmer)
20.00 20.00 17.50 10.00 22.50 10.00
Harvesting
time
April –
June
June –
Nov.
June – Nov. Apr. – June June –
Sept.
Mar. – Sept.
3 Production
volume (t)
111.38 135.00 118.13 28.35 216.00 61.43
Hybrid /
Improved
variety
Arkel,
Azad
Varun Snow Crown Anupama,
Contender,
Black
Queen
Vaishali Bharat,
Gungun
Av. Yield
(q/ha.)
55.69 67.50 67.50 28.35 96.00 61.43
Post harvest
operations
followed
At farm level - - - - - -
At retail level Sorting Sorting Sorting Sorting Grading Sorting
Post harvest
losses (%)
At farm level 5 5 5 5 10 10
During
transportation
5 - - - - 5
At retail level
15 10 20 10 10 20
Packing Gunny
bags
Gunny
bags
Gunny bags Gunny bags Wooden
boxes
Gunny bags
Packing
capacity (Kg)
30 40 27 15 15 17
Table 5 shows the production volume (average) of different OSV in the region and other details of
production and post harvest processes in the region. It was found that average productivity of most
of the OSV is very low in the region. Primary post harvest operations are being carried out at retail
level only but the post harvest losses are huge at retail level due to absence of cool chain
management, lack of availability of space at retail level. During production period, it’s difficult to
handle the volume of produce at retail level.
2.2. Off-season vegetables value chain mapping
VC Supporter VC Operator Informal business
relation (Product)
INPUTS PRODUCTION MARKETING CONSUMPTION
Private
Consumers
Retailer
(Danpur
Krishak
Maha
Sangh)
Farmers
Public and
Private
Extension
Service
(Subsidised
Seeds by
Horticulture
Department)
Other
Consumers
(Restaurants
and Hotels)
Retailers
(Around 40-
50 small
retailers in
Bageshwar)
Retailer
(Sunday
Market)
2.3. Marketing Channel Followed:
Farmers → Retailers→Consumers
Farmers sold different off-season vegetables directly to retailers, mainly to Danpur Krishak Mahasangh and
also to 50-60 local vegetable retailers at Bageshwar besides them retail market (Sunday market) is
organized once in a week where some farmers brought their produce. Since the production volume is less
and there is no wholesale market at Bageshwar, most of the off-season vegetable produced in the region is
consumed within the Bageshwar district market. The present channel brings higher price and higher profits
to farmers as the intermediate agents were mainly cut off.
2.4. Description of value chain’s members
2.4.1. Off-season vegetable growers
Through direct observation and discussion with farmers, the results showed that:
• Average area under off-season vegetable production per farmer is around 2.5 nalis/ farmer (50
nalis = 1 ha.), farmers are mainly cultivating potato under major area (around 10-15 nalis/farmer).
• Seeds for cultivation are mainly procured by farmers from Horticulture Department, Govt. Of
Uttrakhand under subsidized rates (around 50 % subsidy under AJEEVIKA programme).
• Farmers follow the cultivation procedure as sowing of seeds, spraying of pesticide and harvesting of
produce at the end. Farmer’s knowledge regarding scientific cultivation of off-season vegetable is
limited. The average productivity of most of the off-season vegetables is very low, due to following
reasons:
1. Farmer’s complaint of spurious quality seeds
2. There is no irrigation facility available
3. Absence of scientific cultivation management practices
4. Due to various weather vagaries (such as heavy rainfall, hailstones etc) production levels falls down
• Generally women do most of the farm operations
• Post harvest farm losses are mainly in tomato and capsicum
• Transportation of produce is one of the biggest hurdle to farmer as roadside is far away from fields.
Produce is mainly transported through donkeys / rope ways to the main road.
• Farmers are smart in market price query, most of the farmers have mobile phones and they gain
information through retailers, jeep drivers (they are the main transport link between production
area to Bageshwar), other farmers.
2.4.2. Transporters
Transporters act as one of the main link between production area and market. Transportation is mainly
done at two levels:
i) Produce loaded on animal (around 1-2 Km from field to roadside, av. Charges @ Rs. 12 per
quintal of produce) and rope way (av. Charge of Rs. 8 per quintal of produce (Rs. 4 for operator
+ Rs. 4 for diesel to run rope way, Figure 15).
Figure15. Rope way system for transportation of valley OSV produce to roadside
ii) Since the production is scattered and small quantities from different fields Jeep owners act as
link between roadside to market transportation (upto Bageshwar). They charge around Rs. 25/
40 kg produce for a distance of 55 Km. They also act as link between farmer and retailer for
price discovery and demand-supply assessment.
2.4.3. Retailers
Collection, Grading and Market Centre, Danpur Krishak Mahasangh (Farmer’s Federation) is one of the
main retailer (Figure 16) for off-season vegetable production in the area.
Figure 16. Retail outlet of Farmer’s Federation, Bageshwar
Besides them there are around 50-60 other vegetable retailers in the Bageshwar market. Danpur Krishak
Mahasangh is a small centre owned by the Farmer’s Federation but run by entrepreneur who charge 8 %
commission on the market rate of produce to the farmer. The entrepreneur bears the cost for running the
centre and pays to various stakeholders as monthly rent to the federation (around Rs. 800 per month),
municipality of the district (Rs.1700 for 6 months), electricity and water bills (Rs. 500 per month) and labour
charges (Rs. 5000 per month) and also has good reputation with the farmers as he is also the farmer from
the same region of production. They generally do collection, grading (sometimes) and selling of the
farmer’s produce directly to the consumers. During Off-season vegetable production season, they do selling
to other retailers in the market besides direct consumers. Due to small area of centre (Figure 17)and rainy
season during off-season vegetable production, the retailer tries to sell all the produce immediately from
the centre and there is huge wastage at retail level due to these reasons.
Figure 17. Unorganized storage at Retail centre of Farmer’s Federation, Bageshar
Rates are generally decided by the retailers on the basis of demand-supply and market rates of Haldwani
Mandi and Bageshwar Market.
2.4.4. Consumers
Retail outlets at Bageshwar are the main off-season vegetable suppliers to the consumers. Usually
consumer evaluates vegetables quality by eye and hand touching. The criteria order applied when selecting
vegetables are: size, maturity or ripeness or color, shape, taste or flavour or aroma. They make decision
base on the size appearance and price.
2.4.5. Hotels and Restaurants
In Bageshwar district, March to August is the main tourist season and it coincides with the off-season
vegetable production season. Therefore there is enough demand of off-season vegetables in hotels and
restaurants during that period. There are around 25 - 30 hotels and restaurants in the Bageshwar district
and they directly buy off-season vegetables from the retailers.
2.5
. A
cto
rs a
nd
th
eir
Fu
nct
ion
s
K
INP
UT
SP
RO
DU
CT
ION
TR
AN
SP
OR
TM
AR
KE
TIN
GC
ON
SU
MP
TIO
N
Cit
y
Co
nsu
me
rs
Fa
rme
rs
Re
tail
er
Fa
rme
rs
Ho
rtic
ult
ure
De
pa
rtm
en
t
A C T O R S
Ho
tels
an
d
Re
sta
ura
nts
Kio
sk
Re
tail
er
Do
nke
y
Loa
d
Inp
ut
Su
pp
lie
rs
Jee
p O
wn
er
Bu
yin
g
pro
du
ce f
or
con
sum
pti
on
Sto
rin
g
So
rtin
g
Bu
yin
g +
Se
llin
g
Loa
din
g +
Un
loa
din
g,
tra
nsp
ort
ati
on
by
pic
k u
p
ve
hic
le,
lin
k
be
twe
en
farm
er
an
d
reta
ile
r to
ass
ess
de
ma
nd
-
sup
ply
Lan
d
pre
pa
rati
on
So
win
g
Sp
ray
ing
Ha
rve
stin
g
Pa
ckin
g
Su
pp
ly o
f
see
ds,
pe
stic
ide
s a
nd
fert
iliz
ers
A C T I V I T I E S
Tro
lle
y
Op
era
tor
2.6. Various marketing cost components in the value chain of OSV
Table on various marketing cost components in the value chain of OSV (Table 6) revealed that highest
marketing cost was found in Capsicum (Rs. 18.50 per Kg or 46.25 % of retail price) and lowest in the
cabbage (Rs. 5.63 per Kg or 28.15 %).
Table 6: Various marketing cost components in the value chain of OSV
Cost factors Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Packing (Rs./Kg) 0.27 0.20 0.30 0.53 0.67 0.47
Transportation
cost (From Shama
to Bageshwar-
Rs./Kg.)
0.83 0.83 0.83 0.83 0.83 0.83
Post harvest loss
@ farm level
(Rs./Kg.)
1.50 1.00 1.25 1.25 2.50 4.00
Post harvest loss
@ transport level
(Rs./Kg.)
1.50 0.00 0.00 0.00 0.00 2.00
Post harvest loss
@ retail level
(Rs./Kg.)
4.50 2.00 5.00 2.50 2.50 8.00
Commission rate
charged to farmer
(Rs./Kg)
2.40 1.60 2.00 2.00 2.00 3.20
Total Marketing
Cost (Rs./Kg, this
cost excludes
Input Cost)
11.00 5.63 9.38 7.11 9.33 18.50
2.7. Structure marketing margin between farmers and consumers
Within the marketing cost, the share of packing, transport at two levels, wastages at farm, transport and
retail level and commission rate charged to farmer was analysed. In all cases, we look at the cost structure
of simple commodity chain where farmers deliver their produce to the Shama Federation retailer. In all the
cases, wastage at retail level (highest in cauliflower @ 53.30 % of the total marketing cost) followed by
commission rate charged to farmers (highest in cabbage @ 28.42 % of the total marketing cost) contributes
most to the total marketing cost (Figure 18) and total marketing cost for capsicum is highest as compared
to other OSV (Figure 18).
Wastage at retail level may be attributed to the following reasons:
• Complete absence of cool chain management at the retail centre.
• During off-season vegetable production season (June-September), it’s difficult to handle produce at
small scale level retail centre and rainy season interferes in post harvest handling of the produce
and which attributes to wastage due to spoilage (in case of capsicum, tomato etc), improper
handling of the produce (loss of whiteness of cauliflower curd, drying and loss of green colour of
pea etc).
Figure 18. Structure marketing margin between farmers and consumers
0
10
20
30
40
50
60
70
80
90
100
Commission rate charged to
farmer
Retail wastage
Transport wastage
Farm wastage
Transport - II
Transport - I
Packing
Table 7. Prices and values of the Off-Season Vegetables grown in the region
Unit Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Producer
Quantities
Produced
Tonnes 111.38 135.00 118.13 28.35 216.00 61.43
Producer
Price
Rs./ Kg. 27.60 18.40 23.00 23.00 23.00 36.80
Total value
production
Million
Rs.
3.07 2.48 2.72 0.65 4.97 2.26
Marketing
Sector
Total
marketing
cost
Rs./Kg.
( %)
11.00
(36.67 %)
5.63
(28.15 %)
9.38
(37.52 %)
7.11
(28.44 %)
9.33
(37.32 %)
18.50
(46.25 %)
Consumer
Quantities
consumed
Tonnes 105.81 128.25 112.22 26.93 194.40 55.29
Retail Price Rs./Kg. 30.00 20.00 25.00 25.00 25.00 40.00
Total value
consumption
Million
Rs.
3.17 2.57 2.81 0.67 4.86 2.46
2.8
. P
rice
Ma
pp
ing
fo
r O
ff-s
ea
son
ve
ge
tab
les
un
de
r S
HA
MA
mo
de
l
CR
OP
Pe
a
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
16
.76
0
.27
0
.83
3
0.0
0
S
ha
re o
f e
nd
pri
ce
(%)
55
.87
0
.90
2
.77
4
0.4
6
Ca
bb
ag
e
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
12
.56
0
.20
0
.83
2
0.0
0
S
ha
re o
f e
nd
pri
ce
(%)
62
.80
1
.00
4
.15
3
2.0
5
Ca
uli
flo
we
r P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
13
.81
0
.30
0
.83
2
5.0
0
S
ha
re o
f e
nd
pri
ce
(%)
55
.24
1
.20
3
.32
4
0.2
4
Fre
nch
Be
an
P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
14
.19
0
.53
0
.83
2
5.0
0
S
ha
re o
f e
nd
pri
ce
(%)
56
.76
2
.12
3
.32
3
7.8
0
To
ma
to
Pri
ce R
ece
ive
d
(Rs.
/Kg
.)
14
.37
0
.67
0
.83
2
5.0
0
S
ha
re o
f e
nd
pri
ce
(%)
57
.48
2
.68
3
.32
3
6.5
2
Ca
psi
cum
P
rice
Re
ceiv
ed
(Rs.
/Kg
.)
20
.08
0
.47
0
.83
4
0.0
0
S
ha
re o
f e
nd
pri
ce
(%)
50
.20
1
.18
2
.08
4
6.5
4
Fa
rme
rs r
ece
ive
low
est
sh
are
of
en
d p
rice
(5
0.2
0 %
) in
ca
psi
cum
an
d h
igh
est
in
ca
bb
ag
e (
62
.80
%).
FA
RM
ER
PA
CK
ING
TR
AN
SP
OR
TR
ET
AIL
2.9. SWOT Analysis – Shama Federation Model
Strength: The region is very well suited to off-season vegetable production and presence of local authority
(Horticulture department) in growing region could further improve the scientific crop production practices
followed by producer. The direct marketing channel between farmers and retailers has been developed,
which is not involving lot of intermediate agents, thereby farmers gain better income with better market
prices.
Weakness: Most of the production of off-season vegetable is at low scale due to less land devoted to off
season vegetable production by farmers. Productivity of off-season vegetable is very low as compared to
recommended productivity of specific varieties due to presence of spurious seeds, absence of irrigation
facilities, low awareness level amongst farmers for scientific crop production practices, weather vagaries
etc factors. Farmers are not aware of the grading and quality standards of different off season vegetables
cultivated in the region. Transportation from field to market is cumbersome process. Post harvest losses at
farm and retail level contribute maximum loss of value due to interference of rainy season during
production time. The production cost and marketing cost are high and most importantly involvement of
Danpur Krishak Mahasangh is very limited in the entire value chain in terms of operation.
Opportunity: Since the region is well suited for off season vegetable production, more area could be
brought under cultivation to increase the scale of production and with proper coordination amongst Dagri
Samuh (farmers from 36 villages that comprises Danpur Krishak Mahasangh) for production till marketing
process, further improvement in the value chain could be possible. At retail (Danpur Krishak Mahasangh
centre) outlet, provision of cool chain management could further improve the condition and perishability
due to post harvest losses (retail level) could be minimized. With further improvement in production scale,
grading of the produce and possible tie ups with wholesalers at Delhi, Lucknow, Barailey could increase
farmer’s income.
Threat: High migration rate of farmer’s family members from villages to city areas leading to greater
exodus due to loss of interest in farming and also there is strong competition from other off season
vegetables growing region in the Uttrakhand (if produce is sent to wholesale markets at Haldwani, Delhi,
Lucknow, Barailey etc). High perishability and marketing cost are also significant constraints.
III. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal, Ramgarh and Dhari Blocks of
district Nainital of Uttrakhand (Vinodhara Agritech Model)
3.1. General Information
Vindohara Agritech is a proprietor company being run by agribusiness professional in the field of OSV
production and marketing in the growing region. The company provides input, extension and marketing
services to the farmers. The company is operational for the last one year.
Blocks Covered: Bhimtaal, Ramgarh and Dhari
Markets
For A Grade Produce: Meerut, Lucknow Mandi’s and Retailers (Reliance Fresh, 4Fresh) in Delhi
For B Grade Produce: Haldwani Mandi
Aggregation points of OSV produce
Raotighat, Nathuakhan, Ghigrani, Paharpani
Figure 19. Vinodhara Agritech, Collection and Distribution Centre of OSV
Table 8. Basic details related to crop production and post harvest operations
S.No. Particulars Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Av. no. of
farmers
involved in
Off-Season
Vegetable
Cultivation
40 75 35 40 70 9
Av. Land
devoted to
off-season
(nalis per
crop)
6 4 3 1 3 1
Ha./crop
4.80 6.00 2.10 0.80 4.20 0.18
Av. Yield
(t/ha.)
7.41 8.65 8.65 6.18 24.70 4.32
Production
volume (t)
35.57 51.90 18.17 4.94 103.74 0.78
Harvesting
time
April -
August
15th
May
– Sept.
15th
May –
Aug.
June –
Oct.
June –
Sept.
15 June – Aug.
Hybrid /
Improved
variety
Arkel,
Azad P1
Krishna,
Varun,
Manas,
Riya
Snow
Crown,
Snow mist,
Kavery,
Sweta
Anupama Himsona,
Manisha,
777,
Abhay,
Aishwary
a, Lico
Green
Miracle,
California
Wonder,
Crystal Green
Post harvest
operations
followed
At farm level - - - - - -
At wholesale
level
Sorting Sorting Sorting Sorting Grading Sorting
Post harvest
losses (%)
At farm level - - - - - -
At wholesale
level
4.5 2.5 2.5 4.5 2.5 2.5
Post harvest
losses reason
Moistur
e loss
Crushing Crushing Moisture
loss
Crushing
and
Rotting
Rotting during
transportation
Packing Gunny
bags
Gunny
bags
Gunny bags Gunny
bags
Wooden
Box
Cartons
Packing
capacity (Kg)/
unit
40 25 25 40 18 17
Table 8 showed that less no. Of farmers are involved with Vinodhara Agritech (as the company selects only
progressive farmers) and there are many options for varieties for farmers. Post harvest losses are
minimum in this model.
3.2
. O
ff-s
ea
son
ve
ge
tab
les
va
lue
ch
ain
ma
pp
ing
INP
UT
SP
RO
DU
CT
ION
TR
AD
EM
AR
KE
TIN
GC
ON
SU
MP
TIO
N
Cre
dit
Inst
itu
tio
ns
(Kis
an
Cre
dit
Ca
rd,
Ba
nk
s)
Off
-se
aso
n
veg
eta
ble
farm
ers
Vin
od
ha
ra
Ag
rite
ch a
s
Ag
gre
ga
tor
an
d
Ma
rke
tin
g
Ag
en
t
“A”
gra
de
pro
du
ce t
o
Luck
no
w,
Me
eru
t
Ma
nd
i’s
“A”
gra
de
pro
du
ce t
o
Re
tail
ers
such
as
Re
lia
nce
Fre
sh,
4
Fre
sh e
tc
“B”
gra
de
pro
du
ce t
o
Ha
ldw
an
i
Ma
nd
i
Co
nsu
me
rs
Ext
en
sio
n
&
Inp
ut
Se
rvic
e
Pro
vid
er
(Vin
od
ha
ra
Ag
rite
ch)
VC
Su
pp
ort
er
VC
Op
era
tor
In
form
al b
usi
ne
ss r
ela
tio
n (
Pro
du
ct)
In
form
al b
usi
ne
ss r
ela
tio
n (
Info
rma
tio
n)
3.3. Two types of Marketing Channel Followed:
1.
Farmers → Aggregator→ Wholesalers →Retailers → Consumers
Through Meerut, Lucknow Mandi’s
Farmers → Aggregator→ Retailers → Consumers
Through Reliance Fresh, 4Fresh retailers in Delhi
It comprises of 40 % of the produce of “A” grade quality
2.
Farmers → Aggregator→ Wholesalers → Retailers → Consumers
It comprises of 60 % of the produce of “B” grade quality
3.4. Description of value chain’s members
3.4.1. Off-season vegetable growers
Through direct observation and discussion with farmers, the results showed that:
• Average area under off-season vegetable production per farmer is around 18 nalis/ farmer (50 nalis
= 1 ha.), farmers practice crop rotation in their fields as follows:
January – Potato
June – Tomato, Cabbage, Cauliflower
July (end) - Pea
• Farmers follow the cultivation procedure as sowing of seeds, using fertilizers, spraying of pesticide
and fungicides and harvesting of produce at the end.
• Progressive farmers are attached to Vinodhara Agritech.
• Seeds have been supplied by Horticulture department and private input suppliers that includes
Vinodhara Agritech (as Input supplier also).
• As the fields are below the level of roadside, transportation cost is a major problem. Transportation
from field to roadside is mainly done through animals costing av. Rs. 0.75 / kg (depends upon the
distance between field and road).
• Farmers are free to supply their produce to any buyer depending upon the prevailing market rates
of Haldwani mandi. Some of the farmers are in touch with traders at Haldwani mandi.
• Besides off-season vegetables, farmers do cultivation of fruit crops such as peach, apricot etc.
3.4.2. Aggregator and Marketing Agent
Vinodhara Agritech is a proprietary firm run by Mr. N. P. Singh, he is an agribusiness professional with
Masters in Agriculture and operates through hub and spoke model for off season vegetables in the region.
The company provides input services, extension services and act as aggregator and do final marketing of
produce to various destinations depending upon the quality of produce. The company operates through
aggregation/ collection centres (around 4-5) in different production areas (in Bhimtaal, Ramgarh and Dhari
blocks). These centres (Raatighat, Nathuakuan, Ghigrani, Niglat etc areas) are located between 8 to 40 km
distance from the Hub Centre. The company do weighing (through electronic balance) and make on the
spot payments to the farmers based upon the prevailing market rates of Haldwani mandi. The company has
developed its’ own online market rate assessment system and also discover prices of the produce through
Reuter’s Market Light (sms crop service) information system. The company charges 5 % commission rate
from farmers (2.5 % mandi tax + 2.5 % company’s commission).
3.4.3. Transporters
Transporters act as one of the main link between production area and market. Transportation is mainly
done at two levels:
• Produce loaded on animal (av. Charges @ Rs. 2 per Kg produce)
Figure 20. Production of OSV in valley area (transportation cost are high)
• Since the production is scattered and volumes are low, transportation is done by Vinodhara
Agritech from various collection points (spokes) to main centre (hub) with its distance ranges
from 8 to 40 Km from collection points.
3.4.4. Wholesalers
i) Haldwani Mandi
Vinodhara Agritech has tie up with various wholesalers at Haldwani mandi and the company sends “B”
grade produce to wholesalers during production time. These wholesalers charges around 5-6 % commission
on the produce. These wholesalers don’t do any grading, sorting operations. Their role is limited to buying
and selling of produce at their own sheds/ market area.
ii) Lucknow, Meerut Mandis’
Vinodhara Agritech also supplies “A” grade produce to mandis’ other than Haldwani and gets premium
price for its’ produce. It comprises of 40 % of the produce.
3.4.5. Retailers
Vinodhara Agritech has tie up with various retailers such as Reliance Fresh, 4 Fresh etc in Delhi. The
company do sorting, grading of produce as per requirement of the retailers with a premium price of more
than 25 % (Table 9 ).
Table 9. Av. Market rates at Haldwani mandi level, Lucknow mandi level and retail level in Delhi
Market Rates
(Rs./kg)
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Av. Rates at wholesale level – Haldwani Mandi (Rs./Kg)
“B” grade produce
rates (60% of the
total produce)
14.50 4.00 12.00 12.00 10.00 14.00
“A” grade produce
rates (40% produce)
22.00 6.00 16.00 19.00 14.50 20.50
Av. Rates at
wholesale level –
Lucknow/ Delhi
Mandi’s (Rs./Kg)
37.50 13.00 27.50 27.50 22.50 30.00
Av. Rates at
organized retail level
– Reliance Fresh,
4Fresh etc (Rs./Kg)
65.00 25.00 50.00 40.00 30.00 60.00
3.5
. A
cto
rs a
nd
th
eir
Fu
nct
ion
s
K
INP
UT
SP
RO
DU
CT
ION
TR
AN
SP
OR
TT
RA
DE
MA
RK
ET
ING
CO
NS
UM
PT
ION
Cit
y
Co
nsu
me
rs
Fa
rme
rs
Ho
rtic
ult
ure
De
pa
rtm
en
t
(Pu
bli
c
sect
or)
A C T O R S
Ho
tels
an
d
Re
sta
ura
nts
An
ima
l Lo
ad
Vin
od
ha
ra
Ag
rite
ch
Va
n
Bu
yin
g
pro
du
ce f
or
con
sum
pti
on
Gra
din
g
So
rtin
g
Bu
yin
g +
Se
llin
g
Pa
ckin
g
Tra
nsp
ort
Loa
din
g +
Un
loa
din
g,
tra
nsp
ort
ati
on
by
pic
k u
p
ve
hic
le,
lin
k
be
twe
en
farm
er
an
d
wh
ole
sale
tra
de
r
Lan
d
pre
pa
rati
on
So
win
g
Sp
ray
ing
Ha
rve
stin
g
Su
pp
ly o
f
see
ds,
pe
stic
ide
s a
nd
fert
iliz
ers
A C T I V I T I E S
Vin
od
ha
ra
Ag
rite
ch
Wh
ole
sale
Ma
nd
i’s
at
Ha
ldw
an
i,
Luck
no
w,
Me
eru
t
Re
tail
ers
(Re
lia
nce
Fre
sh,
4F
resh
)
Sto
rin
g
So
rtin
g
Bu
yin
g +
Se
llin
g
3.6. Various marketing cost components in the value chain of OSV
Various marketing components in the value chain were calculated separately for “A” and “B” grade produce
(Table 10 and Table 11). Total marketing cost for Pea is highest amongst all OSV in grade “A” produce while
it’s highest in Capsicum in “B” grade produce.
Table 10. Various marketing cost components in the value chain of off-season vegetables (For “A” grade
produce upto wholesale level)
Cost factors Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Packing (Rs./kg) 0.38 0.40 0.40 0.88 0.59 1.00
Transportation cost
(on animal cart
Rs./kg)
0.75 0.75 0.75 0.75 0.75 0.75
Transportation cost -
From collection point
to main centre
(Rs./kg)
1.00 1.00 1.00 1.00 1.00 1.00
Transportation cost –
From main centre to
wholesale level
(Lucknow, Delhi
Mandi’s) (Rs./Kg)
1.33 1.33 1.33 1.33 1.33 1.33
Total Transportation
Cost (Rs. / Kg)
3.08 3.08 3.08 3.08 3.08 3.08
Aggregator
Commission @ 2.5 %
(Rs./kg) on the basis
of rates given to
farmers’
0.55 0.15 0.40 0.48 0.36 0.51
Mandi Tax @ 2.5 %
(Rs./kg)
0.55 0.15 0.40 0.48 0.36 0.51
Post harvest losses
At farm level (Rs./ kg)
0.00 0.00 0.00 0.00 0.00 0.00
Post harvest losses at
wholesale level
(Lucknow/Delhi
Mandi’s (Rs./ kg)
1.69 0.33 0.69 1.24 0.56 0.75
Commission rate
charged at wholesale
level @ 7 % (Rs./Kg)
based upon
wholesale level
prices
2.63 0.91 1.93 1.93 1.58 2.10
Total Marketing Cost
(Rs./Kg,)
8.88 4.69 6.90 8.09 6.53 7.95
Table 11. Various marketing cost components in the value chain of off-season vegetables (For “B” grade
produce upto Haldwani Mandi wholesale level)
Cost factors Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Packing (Rs./kg) 0.38 0.40 0.40 0.88 0.59 1.00
Transportation cost
(on animal cart
Rs./kg)
0.75 0.75 0.75 0.75 0.75 0.75
Transportation cost -
From collection point
to main centre
(Rs./kg)
1.00 1.00 1.00 1.00 1.00 1.00
Total Transportation
Cost (Rs. / Kg)
1.75 1.75 1.75 1.75 1.75 1.75
Aggregator
Commission @ 2.5 %
(Rs./kg) on the basis
of rates given to
farmers’
0.36 0.10 0.30 0.30 0.25 0.35
Mandi Tax @ 2.5 %
(Rs./kg)
0.36 0.10 0.30 0.30 0.25 0.35
Post harvest losses
At farm level (Rs./ kg)
0.00 0.00 0.00 0.00 0.00 0.00
Post harvest losses at
wholesale level
(Lucknow/Delhi
Mandi’s (Rs./ kg)
0.65 0.10 0.30 0.54 0.25 0.35
Commission rate
charged at wholesale
level @ 7 % (Rs./Kg)
based upon
wholesale level
prices
1.02 0.28 0.84 0.84 0.70 0.98
Commission charged
to farmers
1.74 0.48 1.44 1.44 1.20 1.68
Total Marketing Cost
(Rs./Kg,)
4.52 2.73 3.89 4.61 3.79 4.78
3.7. Structure marketing margin between farmers and wholesale level (Haldwani Mandi)
Within the marketing cost, the share of packing, transportation, wastages at wholesale level and
commission rate charged to farmer was analysed for wholesale level (both for “A” and “B” grade produce)
(Table and Table ). In all the cases, transportation cost (highest in Cabbage @ 64.10 % and 65.67 % of the
total marketing cost) contributes most to the total marketing cost this was followed by commission rate
charged to the farmers in most of the cases (highest in pea @ 38.50 % and cauliflower @ 39.57 % of the
total marketing cost), Figure 21.
In case of transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers
have to bring their produce at road level through donkeys (produce loaded on animals) which sometimes
cost more than the transportation from road to wholesale market and also the produce is “B” grade which
fetches slightly lower prices thereby contributing mainly in the marketing cost. While commission rates are
charged at two levels i.e. at Vinodhara Agritech level (2.5%) followed by commission charged at wholesale
level (Haldwani mandi level, 6-7 %). Therefore commission rates also contributes mainly to the total
marketing cost.
Figure 21. Structure marketing margin between farmers and wholesale level (Haldwani Mandi) for “B”
grade produce
Figure 22 . Structure marketing margin between farmers and wholesale level (Lucknow, Meerut Mandi)
for “A” grade produce
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Commission charged to
farmers
Wholesale wastage
Transportation
Packing
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Commission charged to
farmers
Wholesale wastage
Transportation
Packing
3.8. Price Mapping for Off-season vegetables under Vindohara Agritech model
Price received by farmer’s after deduction of input cost, Transportation Cost (Animal cart),
Vinodhara Agritech Commission (2.5 %), Mandi Commission (2.5 %) factors (Table ).
Table . Price Mapping for Off-season vegetables under Vindohara Agritech model (From Farmer’s
Field to Wholesale level (Lucknow / Meerut / Delhi Mandi)
CROP
Pea Price
Receive
d
(Rs./Kg.
)
18.90 0.38 3.08 37.50
Share
of end
price
(%)
50.40 1.01 8.21 40.38
Cabbage Price
Receive
d
(Rs./Kg.
)
4.38 0.40 3.08 13.00
Share
of end
price
(%)
56.94 3.08 23.69 16.29
Cauliflowe
r
Price
Receive
d
(Rs./Kg.
)
13.52 0.40 3.08 27.50
Share
of end
price
(%)
49.16 1.45 11.20 38.19
French
Bean
Price
Receive
d
(Rs./Kg.
)
15.49 0.88 3.08 27.50
Share
of end
price
(%)
56.33 3.20 11.20 29.27
FARMER PACKING TRANSPORT WHOLESALE
Tomato Price
Receive
d
(Rs./Kg.
)
12.68 0.59 3.08 22.50
Share
of end
price
(%)
56.36 2.62 13.69 27.33
Capsicum Price
Receive
d
(Rs./Kg.
)
17.01 1.00 3.08 30.00
Share
of end
price
(%)
56.70 3.33 10.27 29.70
3.9. SWOT Analysis – VINODHARA AGRITECH Model
Strength: The company is run by an entrepreneur who is an agribusiness professional. The company
has got all the components of production to marketing aspects such as input supply, packing,
transportation, linking with markets at wholesale level and retail level. They follows hub and spoke
model of procurement of off season vegetables from the farmers and on the spot payments are
made to the farmers based upon actual weight (weighing done by electronic balance) of the
produce. The company also provides extension services to the farmers through farmer’s meetings.
Weakness: Very few numbers of farmers and those who have land holding of more than 20 nalis
each are associated with Vinodhara Agritech. The company selects only progressive farmers. Due to
fragmentation of land and greater distance from field to road, transportation cost is generally high.
The company’s interest is mainly in procurement of “A” grade produce only. The company pay prices
to the farmers based upon the prevailing market rates of Haldwani mandi while they do marketing
upto the level of organized retailers. The company is operational for just one year.
Opportunity: More and more numbers of farmers could be associated with Vinodhara Agritech. This
will increase the volume of the produce and due to various extension services offered by the
company; quality of the produce could also be improved. For scaling up of operations, presence of
skilled manpower (agribusiness) could further improve the system.
Dissemination of market information to farmers of prices of “A” grade produce sent to organized
retailers could improve farmer’s profit margin.
Threat: Since the company provides various services from input supply to marketing, complete
dependence level of farmers on the company could lead to monopoly of the company in the absence
of other stakeholders of agribusiness service provider.
i. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal, Ramgarh and
Dhari Blocks of district Nainital of Uttrakhand (CHIRAG Model)
4.1. Background and General Information
CHIRAG (NGO) commenced its Agri marketing programme in 2007 in its areas of operation.
Project area of CHIRAG
Chirag has initiated the programme in 20 villages across the project areas of Kashiyalek (9 villages) ,
Reetha (6 villages), Suyalbari (4 villages) , Naukuchiyatal (1 villages) and 1 federation in district of
Bagehwar that is also one of the project area. (Table 12).
Table 12. Project area of CHIRAG
Villages in Kashiyalekh Area
Villages in Reetha Area
Villages in Suyalbari Area
Villages in Nauki Area
Villages in Bageshwar Area
Pokhrar Garhgaon Attakhas Alchona One Farmers Federation that covers 60 villages and has 255 registered members
Buribabna Meora Atavirta
Malla Supi Simayal Ulgor
Talla supi Hartola Dhari
Dubkhar Darim
Lodh Chatola
Galla
Parwada
Supi Kafli
Blocks Covered: Kasya, Reetha, Sialbari, Naukichetal and Bageshwar Blocks
Markets: Wholesale market (Delhi, Haldwani), Organized Retailers in Delhi
Table 13. Basic details related to crop production and post harvest operations
S.No
.
Particulars Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Av. no. of
farmers
involved in Off-
Season
Vegetable
- 200 100 65 40 55
Cultivation
Av. Land
devoted to off-
season (nalis
per crop)
11.00 8.00 5.00 12.00 10.00
Ha./crop
44.00 16.00 6.50 9.60 11.00
Av. Yield
(t/ha.)
8.05 8.65 6.18 16.70 4.87
Production
volume (t)
354.20 138.40 40.17 160.32 53.57
Harvesting
time
- Apr. - July July June –
July
July -
August
July - August
Hybrid /
Improved
variety
- Gidion,
Krishna,
Varun,
Manas,
Riya
Snow white Contend
er
Himsona,
Manisha
Local variety
Post harvest
operations
followed
At farm level - - - - - -
At wholesale
level
- - - Grading
(A, B, C)
-
Post harvest
losses (%)
At farm level - - - - -
At wholesale
level
5 5 5 5 5
Post harvest
losses reason
- - Moisture
loss
Moisture
loss
Puncture and
rotting during
transportation
Packing Jute Bag Jute Bag Jute Bag Wooden
box
Jute Bag
Packing
capacity (Kg)/
unit
20 22 50 18 – Full
9 – Half
17
Table 13 shows the production volume (average) of different OSV in the region and other details of
production and post harvest processes in the region. No data was found for pea, as this crop was not
procured by CHIRAG (in 2008-09, Table 13). In 2009 due to erratic rainfall and low production volume,
CHIRAG did’nt procure that much off-season vegetables.
Table 13 . Procurement of off-season vegetables done by CHIRAG and expected procurement in
2010
Produce Procurement 2007 Procurement 2008 Procurement 2009
Procurement 2010 Cabbage 6673.50 4539.00 1468 12614.06 French bean 40.00 0.00 0 45.00 Tomato 119.00 5495.00 0 6315.75 Cauliflower 208.00 224.00 0 486.00 Capsicum 0.00 1174.00 0 1320.75
4.2
. O
ff-s
ea
son
ve
ge
tab
les
va
lue
ch
ain
ma
pp
ing
INP
UT
SP
RO
DU
CT
ION
TR
AD
EM
AR
KE
TIN
GC
ON
SU
MP
TIO
N
Cre
dit
Inst
itu
tio
ns
(Kis
an
Cre
dit
Ca
rd,
Ba
nk
s)
Off
-se
aso
n
veg
eta
ble
farm
ers
&V
Ma
rke
tin
g
Sa
mit
is
&
CH
IRA
G a
s
Ag
gre
ga
tor
an
d
Ma
rke
tin
g
Su
pp
ort
Un
it
“A”
gra
de
pro
du
ce t
o
Org
an
ize
d
reta
ile
rs i
n
De
lhi
“A”
an
d “
B”
gra
de
pro
du
ce t
o
Wh
ole
sale
De
lhi
Ma
rke
t
“C”
gra
de
pro
du
ce t
o
Ha
ldw
an
i
Ma
nd
i
Co
nsu
me
rs
Ext
en
sio
n
(CH
IRA
G)
&
Inp
ut
Se
rvic
e
Pro
vid
er
VC
Su
pp
ort
er
VC
Op
era
tor
In
form
al b
usi
ne
ss r
ela
tio
n (
Pro
du
ct)
In
form
al b
usi
ne
ss r
ela
tio
n (
Info
rma
tio
n)
4.3. Marketing Channel Followed:
Farmers → F&V Marketing Samiti→ CHIRAG →Wholesalers →Retailers → Consumers
Farmers → F&V Marketing Samiti→ CHIRAG → Retailers → Consumers
4.4. Description of value chain’s members
4.4.1. Off-season vegetable growers
Through direct observation and discussion with farmers, the results showed that:
• Average area under off-season vegetable production per farmer is less than 20 nalis/ farmer (50
nalis = 1 ha.), as this is one of the criteria of CHIRAG to select farmers with less land holdings.
• Farmers follow the cultivation procedure as sowing of seeds, using fertilizers, spraying of pesticide
and fungicides and harvesting of produce at the end.
• In the CHIRAG marketing system, farmer’s responsibility is limited to grading, weighing and loading
(dhulan).
• Post harvest management is the major problem faced by farmers due to rainy season.
• Farmers are mostly not aware of the grading practice to be followed and they send produce to other
buyers (other than CHIRAG) as CHIRAG only procures graded produce.
• In case of cabbage and cauliflower, CHIRAG gives rates on the basis of weight while traders in
Haldwani mandi gives rates on the basis of packing unit (Gunny bag) to the farmers.
• Accessibility to collection centre and absence of complete procurement of produce i.e. whole lot by
CHIRAG are few drawbacks which farmers’ pointed out.
• Farmers mainly do cultivation of apricot, plum and peach fruits besides off season vegetables in the
region.
4.4.2. F&V Marketing Samiti
F&V Marketing Samiti comprise of President, Secretary and members from cluster, there are around 7
clusters (10-20 farmers per cluster) in the Farmer’s Samiti. These clusters makes formal representation for
effective dissemination of information pertaining to post harvest management to marketing aspects of the
produce.
The secretary of the Samiti provides services of F&V collection centre and he charges 2 % for this from
farmers. Further to this the Samiti charges 7 % as rent for collection centre, grading of the produce, packing,
loading (lodai), inspection services.
The samiti also performs the function of documentation, demand-supply assessment, payments made to
farmers and display of marketing rates and information pertaining to products at the collection centre.
4.4.3. Aggregator and Marketing Support Unit (CHIRAG)
CHIRAG is an NGO working as marketing support unit to Fruit & Vegetables Marketing Samitis to provide a
forward linkage to these Samitis by linking them to different markets and deduct transportation cost (to
Haldwani), loading (Rs.2 per unit) and unloading (Rs.2 per unit) cost and service charges (4 % around).
While another sister concern of CHIRAG is Kuamon Gram Udyog (KGU), which is section 25 company and
which operates for the procurement of cereals and pulses as marketing support unit.
In F&V, CHIRAG has initiated the programme in 20 villages across the project areas of Kashiyalek (9
villages) , Reetha (6 villages), Suyalbari (4 villages) , Naukuchiyatal (1 villages) and 1 federation in district of
Bagehwar.
Following are the services provided by CHIRAG
1. Advise/Training in Sustainable Agriculture
• Improving soil health through organic methods (compost with bio-inoculants)
• Improving the quality of planting material (seed treatment and improved nursery raising)
• Organic pest and disease control through minimal external inputs
• Agricultural extension on practices
2. Through Samitis provides day today pricing pattern to farmer.
3. Provide appropriate packing material and weighing facilties.
4. Help farmer to bring duly graded and packed produce for marketing.
5. Arranging competitive transport facilities for final destinations.
6. Through continuous follow-up with buyers, obtain most competitive prices.
7. Keeping a close watch on declaration of quality assessment parameters by various
mandies/retailers to reduce the rejectable quantity.
8. Distribute the cost of material to farmer within designated period irrespective of collection of
same from the mandi/retailer, etc.
9. Collect the final sale price to be accounted by Chirag.
10. Organising small and marginal women farmers into collective marketing
11. Reducing marketing expenses through collective action.
12. Collective input supply like seeds, organic fertilizers, pesticides etc.
13. Promoting non-pesticidal management.
Marketing support unit of CHIRAG declares rates of F&V three days in advance based upon prevailing
market rates of Haldwani mandi. They also prepares database on expected production (month wise, variety
wise), weekly break up. The NGO holds mandi tax licence. They also declared grading specifications to the
farmers. CHIRAG pays the amount to women farmers and also maintains proper documentation of all the
records. Before the produce is ready for market, they do pre market survey and collect information about
prices by personnel visit (taking samples) to organized retail centres such as Big Bazaar, Spencer, Aditya
Birla etc. They also have contacts with traders at Azadpur Mandi (Wholesale mandi in Delhi) for price
discovery. They sent A and B grade produce to organized retails and wholesale mandi (Delhi) and C grade
to Haldwani mandi. CHIRAG gives payment to the farmers after 15 days interval.
4.4.4. Transporters
Transporters act as one of the main link between production area and market. Transportation is mainly done
at two levels:
• Produce loaded on animal (av. Charges @ Rs. 40-50/ 80 kg produce)
• Since the production is scattered and volumes are low, transportation is done by CHIRAG from
various collection points through truck load. The truck moves around 50-60 km area for
collection of produce.
Because of low volume of off-season vegetables, truck load couldn’t able to utilize full space which leads to
high transportation cost (death freight).
4.4.5. Wholesalers
i) Azadpur Mandi, Delhi
CHIRAG have identified few traders in Azadpur mandi, Delhi for sending “A” and “B” grade produce. They
have shortlisted to 3-4 traders who pay good prices to them.
ii) Haldwani Mandi
CHIRAG sends “B” & “C” grade produce to haldwani wholesalers during production time.
4.4.6. Retailers
CHIRAG has tie up with various organized retailers such as Big Bazaar, Spencer, Aditya Birla group, 6to10
etc. The NGO do sorting and grading of produce than supply it to retailers.
4.5
. A
cto
rs a
nd
th
eir
Fu
nc
tio
ns
K
INP
UT
SP
RO
DU
CT
ION
PO
ST
HA
RV
ES
TT
RA
NS
PO
RT
TR
AD
EM
AR
KE
TIN
GC
ON
SU
MP
TIO
N
Cit
y
Co
nsu
me
rs
Fa
rme
rs
Ho
rtic
ult
ure
De
pa
rtm
en
t
(Pu
bli
c
sect
or)
A C T O R S
Ho
tels
an
d
Re
sta
ura
nts
F&
V
Ma
rke
tin
g
Sa
mit
i
Inp
ut
Se
rvic
e
Pro
vid
er
Bu
yin
g
pro
du
ce f
or
con
sum
pti
on
Loa
din
g
Un
loa
din
g
Tra
nsp
ort
Sto
rag
e
Gra
din
g
So
rtin
g
Pa
ckin
g
Lan
d
pre
pa
rati
on
So
win
g
Sp
ray
ing
Ha
rve
stin
g
Su
pp
ly o
f
see
ds,
pe
stic
ide
s a
nd
fert
iliz
ers
A C T I V I T I E S
Fa
rme
rs
(An
ima
l
Ca
rt)
Wh
ole
sale
Ma
nd
i
(De
lhi)
Sto
rin
g
So
rtin
g
Bu
yin
g +
Se
llin
g
CH
IRA
G
(Tru
ck)
CH
IRA
G
De
ma
nd
-Su
pp
ly
Ne
two
rkin
g
Pa
yme
nts
Ra
tes
Info
rma
tio
n
Do
cum
en
tati
on
Tra
nsp
ort
Org
an
ize
d
Re
tail
4.6. Various marketing cost components in the value chain of OSV
Various marketing cost components in the value chain of OSV revealed that highest marketing cost incurred
in pea (Table 14).
Table14. Various marketing cost components in the value chain of off-season vegetables (For “A”
grade produce upto wholesale level)
Cost factors Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Transportation
A) Transportation
cost (on animal cart
Rs./kg)
0.56 0.56 0.56 0.56 0.56 0.56
B) Transportation
cost (charged from
farmer upto Haldwani
Rs./kg)
0.50 0.50 0.50 0.50 0.50 0.50
C) Transportation
cost – From
collection centres to
wholesale level (Delhi
Mandi) born by
CHIRAG (Rs./Kg)
2.75 2.75 2.75 2.75 2.75 2.75
Actual
Transportation Cost
upto Wholesale
level (Delhi) (Rs. /
Kg) (A+C – B)
2.81 2.81 2.81 2.81 2.81 2.81
Secretary, F&V
Marketing Samiti @
2.00 % (Rs./kg) –
Rent charges for
collection centre
0.85 0.17 0.56 0.40 0.40 0.50
F&V Marketing Samiti
@ 5.00 % (Rs./kg) –
For grading, packing,
weighing operations
2.13 0.43 1.40 1.00 1.00 1.25
CHIRAG Charges
Service charges @ 4
%
1.70 0.34 1.12 0.80 0.80 1.00
Rs.4 per packing unit 0.09 0.20 0.18 0.08 0.22 0.24
(For loading and
Unloading)
Post harvest losses
At farm level (Rs./ kg)
0.00 0.00 0.00 0.00 0.00 0.00
Post harvest losses
at wholesale level
(Delhi Mandi’s (Rs./
kg) @ 5 %
2.13 0.43 1.40 1.00 1.00 1.25
Commission rate
charged at wholesale
level @ 7 % (Rs./Kg)
based upon
wholesale level
prices
2.98 0.60 1.96 1.40 1.40 1.75
Total Marketing
Cost (Rs./Kg,)
12.69 4.98 9.43 7.49 7.63 8.80
4.7. Structure marketing margin between farmers and wholesale level (Delhi Mandi) (Table ).
Within the marketing cost, the share of transportation, charges by F&V Marketing Samiti (for storage, sorting,
grading operations), charges by CHIRAG (service charges and loading, unloading charges for wholesale
level), wastages at wholesale level and commission rate charged to farmer was analysed for wholesale level
(Table ). In all the cases, transportation cost (highest in Cabbage @ 56.43 % of the total marketing cost)
contributes most to the total marketing cost this was followed by service of sorting, grading, weighing,
storage offered by F&V marketing samiti and commission rate charged at wholesale level contributes mostly
to the total marketing cost.
In case of transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers
have to bring their produce at road level through animals (produce loaded on animals) and for transportation
from road upto wholesale level charges remains same whether volume of produce is there or not. Therefore
per kg transportation charges remained high, as previously mentioned this is known as Death Freight by
CHIRAG because of high marketing cost due to transportation.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Commission at wholesale
level
Wastage at wholesale level
CHIRAG
F&V Marketing Samiti
Transportation
4.8
. P
rice M
ap
pin
g f
or
Off
-seaso
n v
eg
eta
ble
s u
nd
er
CH
IRA
G m
od
el (F
rom
Farm
er’
s F
ield
to
Wh
ole
sa
le lev
el (D
elh
i M
an
di)
CR
OP
Pea
P
rice R
eceiv
ed
(Rs./K
g.)
30.3
1
2.9
8
2.8
1
42.5
0
S
hare
of
en
d
pri
ce (
%)
71.3
2
7.0
1
6.6
1
15.0
6
Cabb
age
P
rice R
eceiv
ed
(Rs./K
g.)
4.7
0
0.6
0
2.8
1
8.5
0
S
hare
of
en
d
pri
ce (
%)
55.2
9
7.0
6
33.0
6
4.5
9
Caulif
low
er
Price R
eceiv
ed
(Rs./K
g.)
19.3
9
1.9
6
2.8
1
28.0
0
S
hare
of
en
d
pri
ce (
%)
69.2
5
7.0
0
10.0
4
13.7
1
Fre
nch B
ean
P
rice R
eceiv
ed
(Rs./K
g.)
12.4
6
1.4
0
2.8
1
20.0
0
S
hare
of
en
d
pri
ce (
%)
62.3
0
7.0
0
14.0
5
16.6
5
Tom
ato
P
rice R
eceiv
ed
(Rs./K
g.)
13.7
7
1.4
0
2.8
1
20.0
0
S
hare
of
en
d
pri
ce (
%)
68.8
5
7.0
0
14.0
5
10.1
0
Capsic
um
P
rice R
eceiv
ed
(Rs./K
g.)
16.2
3
1.7
5
2.8
1
25.0
0
S
hare
of
en
d
64.9
2
7.0
0
11.2
4
16.8
4
FA
RM
ER
SO
RT
ING
, G
RA
DIN
G,
PA
CK
ING
TR
AN
SP
OR
TW
HO
LES
ALE
pri
ce (
%)
Price r
ece
ived b
y f
arm
er’s a
fter
deduction
of
inp
ut cost, T
ransport
atio
n C
ost (A
nim
al cart
) and c
om
mis
sio
n c
harg
ed a
t w
ho
lesa
le le
ve
l (7
%)
an
d f
or
serv
ices r
en
de
red b
y F
&V
Mark
eting S
am
iti an
d C
HIR
AG
is h
igh
est in
pea (
71
.32
%)
and lo
west in
cabb
ag
e (
55.2
9%
).
4.9. SWOT Analysis – CHIRAG Model
Strength: The model runs on cluster basis (through F&V marketing samitis) where farmers are the members
and extension services provided by CHIRAG in terms of post harvest management practices to be followed
(grading, sorting as per market requirement) and price discovery of different off season vegetables through
display of rates and demand-supply assessment in advance to the farmers. The NGO acts as an aggregator
and marketing support unit for F&V procurement from the farmers and linked farmers to wholesale markets
(Delhi) and organized retailers for getting better prices. The NGO pays farmers income to female members
and also maintains complete documentation w.r.t. production, procurement quantity, prices, market
information related aspects.
Weakness: The NGO only procures “A” grade produce which comprises around 30-40 % of the total
production of the farmers. The NGO pay prices to the farmers based upon the prevailing market rates of
Haldwani mandi and Delhi mandi while they do marketing upto the level of organized retailers. High
transportation cost (death freight) is one of the main drawback in the region as volume of procurement of “A”
grade produce is low while charges for truckload remains same.
Opportunity: More and more numbers of farmers could be associated with F&V marketing samitis and
CHIRAG. This will increase the volume of the produce and due to various extension services offered by
CHIRAG; quality of the produce (more and more conversion of “B” and “C” grade to “A” grade produce) could
also be improved. There is need to strengthen the F&V marketing samitis and role of farmers in the samitis.
Dissemination of market information to farmers of prices of “A” grade produce sent to organized retailers
could further improve farmer’s profit margin. Also crop insurance practices are already followed in the region
in apple and potato, this could be further enhanced to off-season vegetables grown in the region.
Threat: Viability of the model to run on sustainable basis in the absence of NGO (CHIRAG) is doubtful. In
the past also, in the absence of NGO, functioning of samitis crippled and only two samitis were managed to
run independently out of 12 samitis.
j. Value Chain Analysis for different Off-Season Vegetables of Lamagara and Dhauladave
Blocks of district Almora of Uttrakhand (ULIP, Almora Model)
5.1. General Information
Off season vegetable production is one of the sub-sector identified under Uttrakhand Livelihood
Improvement Project of Govt. Of Uttrakhand where main focus is given on supporting input facilities
(provision of quality seeds, polyhouse cultivation, availability of irrigation facilities etc) to farmers for better
production of OSV. The OSV project is being run by NGOs (RICE and GRASS) in Naini and Motiabatha
cluster.
Figure 23. Ajeevika programme
Blocks Covered: Lamagara and Dhauladave Blocks
No. Of villages: 15
Markets: Local consumption, Almora, Haldwani
Table 15. Basic details related to crop production and post harvest operations
S.No
.
Particulars Crops
Pea Cabbage Cauliflower French
Bean
Tomato Capsicum
Av. no. of
farmers
involved in Off-
Season
Vegetable
Cultivation
175 350 170 200
Av. Land
devoted to off-
season (nalis
per crop)
7 7 6 7
Ha./crop 24.50 49.00 20.40 28.00
Av. Yield
(t/ha.)
7.00 8.54 5.16 9.40
Production
volume (t)
171.50 418.46 105.226 263.20
Harvesting
time
July -
August
July -
August
July -
August
July -
August
Hybrid /
Improved
variety
Arkel Krishna,
Varun,
Anupama Himsona
Post harvest
operations
followed
At farm level - - - -
At wholesale
level
- - - Grading
(A, B, C)
Post harvest
losses (%)
At farm level - - - - -
At wholesale
level
5 5 5 5 -
Post harvest
losses reason
Moistur
e loss,
Fungal
rot
during
rains
- Moisture
loss
Moisture
loss
-
Packing Gunny
Bag
(light
material
)
Jute Bag Jute Bag Wooden
box
-
Packing
capacity (Kg)/
unit
23.00 30.00 35.00 20 .00 -
Table 15 showed production volume of OSV in the region. Pea, cabbage, French bean and tomato are the
main crops under ULIPS, Almora programme.
5.2
. O
ff-s
ea
son
ve
ge
tab
les
va
lue
ch
ain
ma
pp
ing
INP
UT
SP
RO
DU
CT
ION
TR
AD
EM
AR
KE
TIN
GC
ON
SU
MP
TIO
N
Cre
dit
Inst
itu
tio
ns
(Kis
an
Cre
dit
Ca
rd,
Ba
nk
s)
Off
-se
aso
n
veg
eta
ble
farm
ers
Loca
l
Tra
de
rs
&
Dir
ect
ly b
y
farm
ers
(ve
ry f
ew
)
Loca
l m
ark
et
Alm
ora
Ma
rke
t
Ha
ldw
an
i
Ma
nd
i
Co
nsu
me
rs
VC
Su
pp
ort
er
VC
Op
era
tor
In
form
al b
usi
ne
ss r
ela
tio
n (
Pro
du
ct)
In
form
al b
usi
ne
ss r
ela
tio
n (
Info
rma
tio
n)
Tra
de
rs
5.3. Marketing Channel Followed
Farmers → Local Traders →Wholesalers →Retailers → Consumers
Farmers → Local Traders → Retailers → Consumers
5.4. Description of value chain’s members
5.4.1. Off-season vegetable growers
Through direct observation and discussion with farmers, the results showed that:
• Average area under off-season vegetable production per farmer is around 6-7 nalis/ farmer (50 nalis
= 1 ha.).
• Farmers follow the cultivation procedure as sowing of seeds, using fertilizers, spraying of pesticide
and fungicides and harvesting of produce at the end.
• Farmers are not doing any primary post harvest operations.
• Lack of irrigation facility is the main drawback in production of off season vegetables.
• Transportation cost of produce is high.
• Farmers mainly do cultivation of potato besides off season vegetables in the region.
5.4.2. Local Traders
He is the main link between farmers and traders in Haldwani and Almora. They charges Rs.2/ packing unit
and per cent commission on selling of produce.
5.4.3 Transporters
Transporters act as one of the main link between production area and market. Transportation is mainly done
at two levels:
• Produce loaded on animal (av. Charges @ Rs. 100/ 100 kg produce)
• Since the production is scattered and volumes are low, transportation is done by Jeeps and
when volumes are high than by trucks (av. Charges @ Rs. 40 per 100 kg produce).
5.4.4. Wholesalers
Farmers sends produce to haldwani wholesalers during production time through local traders.
5.4.5. Retailers
Retailers are present at three levels:
i) Local market consumption (around 10 km from production area)
ii) Almora market (around 70 km from production area)
iii) Haldwani market
The interventions by NGOs in the off season vegetables under ULIPS, Almora programme is at nascent
stage and focus is mainly on providing input services such as polyhouse facilities, irrigation facilities, seed
production activities etc. The production is scattered but potential is good for off season vegetable
production. High transportation cost and presence of traders (some farmers are under debt of these traders)
in the value chain are the main bottlenecks. Local markets and Almora market provides good marketing
platform for off season vegetables in the region that holds promising future markets besides tie-up with
organized retailers for getting better prices to farmers.
CHAPTER 4: CONSTRAINTS/ OPPORTUNITIES AND CONCLUSION
I. Constraints
Different models of off-season vegetables are being operated differently by various stakeholders (NGOs,
entrepreneur, Govt.) and have different markets. One of the production constraints in most of the models
is low volume of production of OSV due to poor availability of quality inputs, lack of irrigation facility,
climatic vagaries (drought/ heavy rainfall/ hail storms), pests and disease problems etc. In case of
marketing costs, transportation cost is one of the main constraints that increases the total marketing cost
in most of the models, while in some models, commission rate charged at various levels from production to
marketing adds up to high marketing cost. Most of the farmers in the models are not aware of the
importance of sorting and grading operations. Where farmers are doing grading, they are getting better
prices but not comparable to organized retail markets. Lack of market information amongst farmers is also
one of the main constraints in the value chain of OSV. Farmers are not aware of the prices of the produce in
other wholesale market (other than state) and at organized retail level. In terms of OSV, pea and capsicum
are the two main crops where farmer’s shares in end prices are low.
II. Opportunities
Since most of the region is good for off-season vegetables production, improving the farmer’s awareness
level regarding varieties, scientific crop management practices, and primary processing practices could
improve the production of OSV and reduce the wastage of OSV produce. Pea and capsicum are two OSV
which could fetch higher prices in the market; therefore there is a need to improve the production of these
two crops during OSV production time. Proper systems need to be developed to reduce the transportation
cost to minimum. Existence of Farmers Interest Groups/ Farmer’s Federation/ F&V Marketing Samiti could
provide opportunity to strengthen the farmer’s group and converted into producer company/ federation/
cooperative so that farmers could be the main beneficiary in the entire value chain and they could get
better prices of their produce. In some of the models, farmers are directly/ indirectly connected to the
retailers/ organized retailers, this will pave the way for better returns to the farmers in the long run if
farmers produce uniform quality and graded OSV. The operator of these models should act as facilitators of
the model so that win-win situation could be there for the farmer and the operator.
III. Conclusion
The study on OSV value chain in the region reveals that OSV are the potential source of income to the
farmers. Although there are production and marketing constraints in the OSV, great demand of these
vegetables in the plains makes it a better choice. Each model of the OSV in the region has its own strength
and weaknesses, there is a need to ascertain the best system of production and marketing that could fulfils
the gaps in the value chain of the OSV in the region.
IV. APPENDICES
List of Interviewees
S.No. Name Particulars Contact details
1 Mr. Pankaj Kumar
Sr. Project Manager, CHEA, Nainital 09412034374
2 Mr. Pratap Singh
Nagarkoti
Project Manager, CHEA, Nainital 09411198873
3 Harish Chand
Bhadani
Farmer, Dhari Block, Nainital
09758345426
4 Lalit Mohan Sharma
Farmer, Dhari Block, Nainital
09557664616
5 Dinesh Chand
Farmer, Dhari Block, Nainital
6 Prakash Chander
Farmer, Dhari Block, Nainital
7 Shyam Lal
Farmer, Dhari Block, Nainital
8 Dewan Ram
Farmer, Dhari Block, Nainital
9 Santosh Kumar
Farmer, Dhari Block, Nainital
10 Devender Chand
Aggregator/ Village level Commission Agent,
Dhari Block
11 Ghanshyam &
Company
Trader at Bhowali Market
05942-220052;
09412085052
12 Shailesh CHIRAG, Simayal 09917581231
13 Vijay CHIRAG, Simayal 09412348432
14 Mahender Singh Secretary, F&V Marketing Samiti, Simayal 09837686158
15 Om Prakash Pandey Member, CHIRAG, Suyalbari 09412943579
16 Mahesh Chand Bhatt Farmer, Suyalbari 09411300011
17 Govind Singh Bist Secretary, F&V Marketing Samiti, Suyalbari 09758916873
18 Pratap Singh Farmer, Shama, Bageshwar 09411327518
19 Mohan Singh
Karonga
Secretary, Shama Federation, Bageshwar 09458603473
20 Kunwar Singh Farmer, Shama, Bageshwar 09410920829
21 Lokpal Karonga Farmer, Liti, Bageshwar 09458342005
22 Harish Chandra Singh Farmer, Liti, Bageshwar
23 Shyam Singh Farmer, Liti, Bageshwar
24 Khem Ram Arya Horticulture Department, Shama, Bageshwar 09410163646
25 Yashpal Singh Ex-Secretary, Shama Fed., Bageshwar 05963-223546
26 Harish Chander
Bhadani
Farmer, Paharpani 09758345426
27 Riyas Ahmed Manager, ULIPS, Almora 09412162034
28 Mangal Singh Rawat Group Coordinator, ULIPs, Almora 09456723314
29 Gopal Bisht Block Coordinator, ULIPs, Almora 09410159129
30 Dr. Suresh Matwal Manager, Technical Services, ULIPs, Almora 09412094613
31 Dheeraj Singh
Nigaltiya
Farmer, Niglat 09758078545
32 Bhuwan Pandey Farmer, Niglat
33 Lali Mehra Farmer, Niglat
34 Deewan Singh
Mehra
Farmer, Niglat
35 Govind Ram B-47, Trader, Haldwani Mandi 09259440345
36 Pramod Kumar Pant C-44, Trader, Haldwani Mandi
37 Tarun B-49, Trader, Haldwani Mandi
38 Ram Chander Packer, Haldwani Mandi 09369044030
39 Rajender Prasad
Sharma
Surveyor, APMC, Haldwani
40 Suri Roadlines Transporter, Haldwani 09837066204
41 Jagdamba Transporter, Haldwani 09837206830