grp 7 Korba

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AssessmentOf

Feedstock Availability

For

Renewable Energy Projects

& Market Linkages of Project

Outputs

Korba,

Chhattisgarh

Kolwan,

Maharashtra

Study conducted by

MART

A-32, 1st

Floor, Sector -17, Noida 201 301

T: 0120-2512140, F: 0120-4273995Website: www.martrural.com

Document VersionFinal

Dated5th Nov 2009
http://www.martrural.com/http://www.martrural.com/


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GTZ

GTZ is an international cooperation enterprise for sustainable development with worldwide operations, promotes

complex reforms and change processes. GTZ in collaboration with Indian Ministry of New and Renewable Energy and

German Ministry of Environment is implementing a project on rural electrification based on biomass conversiontechnologies and other renewable energy sources. It wants to develop and test a model for rural energy services

owned, operated and maintained by the village communities. It has planned to set up two renewable energy projects,one at Korba, Chhattisgarh and second at Pune, Maharashtra. A study has been designed to assess the availability of

feedstock with the community and explore alternate sources in the neighboring trading centers.

MART

MART is a leading, emerging market consultancy, working in India and neighboring countries to enable the poor toimprove their quality of life by delivering innovative, high value, end-to-end solutions through clients. Its services

include research, strategy and implementation. MART works with government, development sector organizations,

multinational corporations and corporate foundations. It is known for its pioneering work in the areas of livelihoods andrural marketing. It has undertaken several studies on forest produce and agri-produce value chain for development and

corporate sector.

Korba, Chhattisgarh

The renewable energy project for rural electrification has been conceived in Korba (Chhattisgarh), which will produceelectricity from non-edible oil-seeds produced in forests. The community from 24 project villages will collect the non-

edible oilseeds and an annual requirement is 800 ton.

Kolwan, Pune, Maharashtra

The renewable energy project has been conceived in Kolwan valley in Pune (Maharashtra) which will produce electricity

from agri-waste produced in the area. The project covers 6 villages and 975 households.


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Preface

The overall goal of GTZs proposed renewable energy projects is to find sustainable rural energy supply solutions which

clearly go beyond conventional electrification by addressing the total energy requirements for cooking, electricity and

motive power through various forms of biomass material based on available biomass conversions technologies andother renewable energy technologies.

The project has two sites:

Site 1: A cluster of 24 villages in district Korba, Chhattisgarh State (25 kms from Korba town)

Site 2: A cluster of 6 villages in Kolwan valley in district Pune, Maharashtra State (40 kms from Pune)

The main feedstock for electricity generation in 24 villages in district Korba is non-edible vegetable oil to be obtainedfrom Jatropha, Kusum and other non-edible oilseeds. The electricity generation in Kolwan is proposed from biogas

obtained through bio-methanation of Agri-wastes. GTZ commissioned a study to know the annual availability of theseoilseeds in the vicinity of the project site at Korba, and the availability for Agri-wastes in the Kolwan valley.

MART undertook the study in both the project sites by following an agreed methodology and prepared the study

report. The study report is divided into 2 sections namely Section 1 and Section 2. Section 1 deals with the findings andanalysis of Korba, Chhattisgarh while the Section 2 deals with the findings and analysis of Kolwan, Pune as per the table

of contents, placed at the starting of each section.


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Section IKorba, Chhattisgarh


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Contents

Particulars Page No.

Executive Summary 7

1. Introduction 12

2. Objectives of the study 12

3. Methodology 13

4. Context of Korba 14

5. Profile of Villages 15

6. Availability of TBOs in the study villages 18

7. Dung Availability 32

8. Market Dynamics of TBOs 34

9. Procurement Dynamics 40

10.Marketing potential of organic manure 44

11.Need for Electricity 45

Annexure 1: List of Contact Persons 46

Annexure 2: Discussion Guides, Checklists 47

Annexure 3: Creating Village Marketing Associate 52

Annexure 4: PRA and FGD sheets of Cluster 53


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List of Abbreviations

BALCO Bharat Aluminum Company

BDO Block Development Officer

BRGF Backward Region Grant Fund

CSEB Chhattisgarh State Electricity Board

DAO District Agriculture Officer

DFO District Forest Office

DOC Deoxygenated Oil Cake

EPA Entry Point Activity

FGD Focus Group Discussion

ha HectareJJS Jijeevisha Samitee

KCC Kisan Credit Card

KSTPS Korba Super Thermal Power Station

TBO Tree Borne Oilseed

PRA Participatory Rural Appraisal

PDS Public Distribution System

SECL South Eastern Coalfields Limited

SHG Self Help Group

VEC Village Energy Committee


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Executive Summary

Objectives of the study

The objectives of the study were to

assess the availability of non-edible oilseeds and future estimates in the 24 study villages

understand current marketing practices for Jatropha / Kusum & other non-edible oil seeds

understand market channels and market dynamics of oilseed procurement, selling and its usage

understand the cost implication in case of procurement from both project areas and other adjoining areas

explore market linkages to sell bio-manure available as waste of the oil extrusion and oil cake digestion process

formulate a mechanism for ensuring availability of the feedstock from the catchment area, at minimum cost,

without disturbing traditional business practices

Assessment Methodology

A multi pronged methodology was undertaken to assess availability of Tree Borne Oilseeds (TBOs) in the cluster of

24 villages, under the project, its adjoining areas and neighbouring markets.

o Community interactions using participatory rural appraisal and focus group discussion methods were

conducted in the 24 village clusters to understand the village level dynamics of TBOs including collection

practices, quantum of produce collected, seasonality of collection, usage and marketing practices.

o In-depth interviews were conducted with market players (traders, expelling units and oil mills etc.) located

at different locations to understand trading practices including the quantum of TBO traded in the markets,

dynamics of trading, prevailing prices and terms of trade. Interactions with traders were conducted in the

markets of Korba, Churi, Katghora, and Pendra Road etc.

o Physical enumeration to assess Jatropha plantation density, survival rate and status on production wasconducted. Ten random sample plots of 100 square meters each were used for assessment.

TBO availability in the cluster

Tree Borne Oilseeds (TBOs) were mostly available in the project areas in the form of

o Mahua (commonly known as dori),

o Kusum,

o Saal

o Jatropha.

Collection of TBOs from the forest is open to all.

The community is involved in collection of Mahua, Kusum, and Saal. Mahua and Kusum are sold and traded in theopen markets, while Saal seed is a nationalized produce and State Government through the Forest Corporation

retains the purchase and trading rights.

Mahua, Saal and Kusum trees are mostly found in forest land. But these trees are also grown on the plot boundaries

of agriculture field by individuals.

Among the various TBOs collected, Mahua emerged as the major oilseed followed by Saal and Kusum.

o The community (24 villages) estimated a total collection of about 141.9 ton of Mahua of which 95.7 tons are

sold in the market. The remaining 46.2 tons is consumed by the community. Villagers use a traditional oil

extraction method to obtain Mahua oil which is used both as edible oil and for external application. This

extraction method generates approximately 25-30% oil and 32.3 tonof oil cakes as by-products.


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o Approximately 23.23 tons of Kusum seed is estimated as collected in the cluster of 24 villages of which only

2.25 tons are sold in the market. The remaining 20.98tons is processed for oil and used by community. The

oil is believed to have medicinal properties and also used for lighting lamps during festivals. The traditional

oil extraction method yields about 25-30% oil. Around 14.7 ton of Kusum oil cake is available as a by-

product in the cluster.

o The community assessed a collection of 64.47 tons of Saal seeds which is sold to the forest department at a

fixed government rate.

During the cluster level discussions, community felt that collection of Kusum has reduced in the past decade due to

promotion of Lac cultivation by the district administration. (Kusum is the host tree for Lac cultivation and the

process does not allow flowering, thus, no seeds are produced). There is an increase in adoption of Lac cultivation

by Kusum tree owners as it promises relatively higher earnings than oilseeds.

Oil cakes from Mahua and Kusum are not consumed by animals and are, mostly dumped in the dry compost heaps

of cow-dung. However, sometimes they are able to sell the oilcakes in the nearest haat for Rs.1-2 per kg. Some

members of village community reported bartering oilcake for salt in the local haat (periodic markets). Some feel

that they are unable to sell the oilcakes due to lack of knowledge of its usage.

Traditionally the community used Mahua oil for consumption but this is changing as more and more households are

consuming factory processed refined vegetable oil. It was estimated that a family of 5 members consumes about

30 litres of oil per annum. The refined vegetable oil is priced at Rs45/litre for unpacked oil and Rs55/litre for

packaged oil.

Jatropha is yet to be collected and, therefore, there is no data

available. The State Forest Department is the nodal agency for

Jatropha plantation. The records on the size of plantation with DFO,

Korba, is shown in the adjoining table

Jatropha oilseed collection in the study villages is non-existent and

therefore no collection was reported. However, collection is reportedfrom neighbouring areas of Marwahi, Pendra, Pendra Road and adjoining areas (located around 150 km from

Korba).

MART assessed that 9.59 ton of Jatropha oilseeds would be the potential production in the study villages after 3

years of growth of plantation and 41.8 tons after 5 years of growth of plantation, based on the communitys recall

of Jatropha plantation in the study villages.

TBO availability in the neighboring markets

Availability of TBOs outside the 24 project villages was estimated based on discussions with traders and expelling

units located in these markets. Villagers living in village clusters outside the project area sell their oilseed produce in

the markets of Churi, Korba, and Katghora.

MARTs assessment of oilseed transaction in different markets is as follows:

Oilseed Transaction in tonsMarket Location

Mahua Kusum Karanj

Korba 1125 30 30

Churi 625 45 45

Katghora 1575 23 60

Pendra Road 1350 38 Not Available

Prices of Mahua, Kusum and Karanj vary as the produce gets aggregated at larger trading centers.

Year Total Jatropha Plantation

2005-06 2,17,000

2006-07 14,00,015

2007-08 44,22,300

2008-09 No Plantation


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Procurement Dynamics

Procurement of TBOs can be done through following sources; individual collectors, the self help groups (SHGs)

within the project area, and traders in the market. Procurement from individuals and SHGs will necessarily require

dealing with large number of people for small quantities. It was assessed that a household collects about 0.127 ton

of oilseeds per year.

The Village Energy Committee (VEC) in its existing structure will necessarily need the support of village level

aggregators to procure TBO. SHGs in the project area and neighboring villages can be mobilized for collection of

Clusters

Mahua Seed = 96 tons @ Rs. 10150/tonKusum Seed = 2 tons @ Rs. 6150/tonSal Seed = 64 tons @ Rs. 5650/ton

Korba

Mahua oilseed = 1125 tons @ Rs. 137000/tonKusum oilseed = 30 tons @ Rs. 7700/tonKaranj oilseed = 30 tons @ Rs. 6700/ton

Churi

Mahua oilseed = 675 tons @ Rs. 137000/tonKusum oilseed =45 tons @ Rs. 7700/tonKaranj oilseed = 45 tons @ Rs. 6700/ton

Katghora


Pendra Road

Mahua oilseed = 1350 tons @ Rs. 14300/tonKusum oilseed = 38 tons @ Rs. 8300/ton

Jatropha oilseed = 900 tons @ Rs. 19800/ton

30 kms

35 kms

45 kms

160 kms

Clusters


Korba


Churi


Katghora


Pendra Road



30 kms

35 kms

45 kms

160 kms


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TBOs on commercial terms. Commercial procurement from community would be necessary for long term

sustainability.

It is evident that the total quantum of TBOs available within the clusters is not sufficient to meet the required

quantity of 800 tons per annum for the project (for oilseeds quantity requirement, refer to brief from GTZ). This

shortfall can be met by purchasing TBOs from traders located in the nearby towns, Korba (30 kms), Churi (35 kms),Katghora (45 kms). Initially the project may have to depend largely on Mahua as a fuel source.

The present demand for TBOs is seasonal at the village and first aggregation points, and most traders do not hold

the stocks for more than 2-3 months. The non-availability of oilseeds in the off-season leads to an increase in prices.

To get the best price, it may therefore be advantageous to procure TBOs within a span of 1-2 months of the harvest

period. Moreover, procured oilseeds should be converted into oil as soon as possible since oil content reduces over

the period of storage.

The GTZ project plans to set up six oil expelling units in the project area. MART suggests that a commercial

orientation to the units could improve the availability of oilseeds from communities living outside the project area

(neighboring villages). The expelling unit can have access to oilseeds from a number of catchment villages in theneighborhood.

Jatropha Plantation and Potential Source for Oilseeds

The MART team assessed that the Jatropha plantation is unlikely to yield significant quantities even in the next 3 to

4 years because of poor plant care. It would be worth considering a pro-active approach by GTZ to engage with the

forest department and community with

a. entry point activities (EPA) to develop proper management processes for Jatropha such as earth work,

weeding, pruning and fertilizer application, etc.

b. Awareness creation among the community on best practices to maximize yield and build community

ownership to ensure long term sustainability. The communitys engagement in plantation management will

help them in the procurement process.

Villagers can also be mobilized to undertake Jatropha planting through a contract farming approach. As the

existing plants yield expected to grow after 3-5 years, this may be taken up experimentally by GTZ, initially, as has

been promoted by Reliance in Pendra Road. To ensure that productive land for food crops are not converted to

Jatropha production, the community may need to be educated on the use of fallow land or plot boundaries for

Jatropha planting.

There exists a community of petty traders who aggregate TBOs at village level and sell in town markets. These

traders could be motivated to participate in the project as Village Marketing Associates in the business model.

The aggregation of TBOs at the nearby town markets is of significant quantities and commodity traders do stock up

during harvest season. These stocks are held back in godowns for a few months to fetch better price.

Impact on TBO business

The requirement of 800 tons of TBO for electricity generation, will affect the traditional business channels as a

significant part of aggregated TBOs are consumed locally. However, the present adverse sentiments regarding


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price rises due to bulk procurement does not consider the production of Jatropha and its availability in subsequent

years.

The project can also procure oilcakes from the large scale expeller units located in Korba and Katghora. Some of the

units reported surplus Mahua oil which can be procured by the project. Oil expellers located in Katghora claim to

have surplus Mahua oil and need parties to buy it. They are also open to renting out the premises and expelling ofany amount of Mahua oilseed required.

Bio Manure

Bio Manure, though promoted by government and development agencies, has still not been accepted as effective

crop fertilizer. Presently, it is only the government and institutions which are the potential customers. The Project

can explore marketing possibilities with the Agriculture, Forest Department and NGOs promoting sustainable

agriculture programs.

Agri input suppliers feel that farmers have to be educated about the benefits of Bio Manure before they will use it.

One major distributor located in Bilaspur remarked; bik to jayega par field mein kaam karna padega (It can be sold,

but only with a lot of effort). A local retailer based at Korba remarked that farmer would be willing to pay not more

than Rs. 1000-1200 per acre on fertilizer application.

Major Players in Jatropha

Discussions with resource persons revealed that Companies like Reliance and D1-BP, IKF have acquired employed 2

distinct strategies to ensure procurement. Firstly they have acquired large tracts of land and promoted Jatropha

plantation, secondly they have mobilized farmers to undertake Jatropha cultivation on their own lands. They have

supplied quality materials to the farmers and have ensured buy back.


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1. Introduction

GTZ is an international cooperation enterprise for sustainable development with worldwide operations, promotes

complex reforms and change processes. GTZ in collaboration with Indian Ministry of New and Renewable Energy and

German Ministry of Environment is implementing a project on rural electrification based on biomass conversion

technologies and other renewable energy sources. It wants to develop and test a model for rural energy services

owned, operated and maintained by village communities. One project location has been identified in Korba

(Chhattisgarh) close to select 24 villages to produce electricity from non-edible vegetable oil-seeds.

The main feedstock for electricity generation in 24 villages in district Korba is non-edible vegetable oil. The annual

requirement of project is approximately 800 tons of oilseeds.

GTZ would like to gain an understanding of:

The assured annual availability of Tree Borne Oilseeds in the vicinity of the identified villages.

Procurement details, in terms of, how and from where and at what cost the remaining quantities can be

procured from neighbouring areas in case of inadequate supply from among the 24 villages.

The market linkages for the sale of bio-manure (waste product) from the project.

The study is designed to assess the availability of Tree Borne oilseeds with the community and explore alternate

procurement sources in the neighboring areas.

2. Object ives of the Study

To assess the non-edible oilseed trees & plantation and current production level, future estimates and also to

explore potential availability of Jatropha and other TBOs in the clusters

To understand current marketing practices for Jatropha / Kusum & other non-edible oil seeds

To understand market channels and market dynamics of seed procurement, selling and its usage To understand the cost implication in case of procurement from both project areas and other adjoining areas

To explore market linkages to sell bio-manure available as waste of the oil extrusion and oil cake digestion

process

To formulate a mechanism for ensuring availability of the feedstock from the catchment area, at minimum

cost, without disturbing traditional business practices


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3. Methodology

Participatory Rural Appraisal (PRA) followed with Focus Group Discussion (FGD) was conducted to assess TBOs

availability at the cluster level.

PRA was conducted with collectors and petty traders of TBOs, village elders, representing each project village.

Indicative geographical mapping was done to assess the status of TBOs, community ownership of TBOs, and market

reach for the village locations and clusters during the PRA.

Focus Group Discussion was done with TBO collectors to understand number of households collecting TBOs, quantity

collected and sold per household, seasonality of collection, and marketing practices of TBO. Villagers had a good

understanding of their own and other project villages in each cluster. The discussion focused on plantations, seed

collection, self usage and marketed surplus and observations made were validated by participants.

Interactions with representative of the Gram Panchayat, Beat Officers were conducted to understand status of TBO

plantation, community ownership and collection potential. Interaction with farmers was done to understand the use of

bio manure in their agriculture practices.

Physical Enumeration for Jatropha was conducted as it is expected to fulfill the TBO need for electricity generation

under the project. Based on community recall of existing plantation and DFO records, MART team carried out physical

assessment in 10 sample plots of100 sq.m. each and assessed the expected TBO quantity which would be available in

near future.

Interactions with traders and expelling units located in the nearby markets were conducted to assess the transaction of

TBO in each of the markets.


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4. Context of Korba

Korba district is the power hub for Chhattisgarh and is, thus, known as the power capital of the state. The district falls

under Bilaspur division and is inhabited mainly by tribal communities including the protected tribe, Korwas (PahadiKorwa). The district headquarters is Korba city, which is situated on the banks of the confluence of rivers Hasdeo and

Ahiran. Korba is situated in the northern half of the Chhattisgarh state and surrounded by the districts of Korea,

Surguja, Bilaspur, and Janjgir. Korba is the land of black diamond (coal), kosa silk and thermal power. The headquarters

of Korba district is situated about 200 KM. from the capital city Raipur. The District's total area is 714,544 hectares, of

which 283,497 hectares is forest land.

Korba is often referred to as the Industrial Hub of Chhattisgarh. The district is enriched with the essential raw materials

required for power generation, namely coal and water. The four Thermal Power Plants (KSTPS, BCPP, CSEB East, and

CSEB West) together generate 3650 MWs of electricity. Besides these, there is a Hydro Electric Power Station situated

at Bango. SECL, a profit making Coal Company under the Coal India Limited has many of its main mines in Korba

district. Aluminum major BALCO (Bharat Aluminum Company) is also based in the district.

The people of Korba come from different religious, social and cultural backgrounds. The main inhabitants are tribals

who constitute the majority (51.67%) of the total population. The main Scheduled Tribes in Korba district are Pahadi

Korwa, Gond, Raj Gond, Kawar, Bhaiyana, Binjwar, and Dhanuhar. Some of the major Scheduled Castes are Satnami,

Ganda, and Panka.

District Information Particulars

Tehsils Korba, Katghora, Kartala, PaliBlocks Korba, Kartala, Katghora, Pali, Podi Uproda

Number of R.I Circles 9

Number of Gram Panchayat 341

Number of Revenue Villages 742

Total Area (in Hectares)

District Forest Kharif crop Rabi crop

714,544 283,497 135,908 13,158

Forests play an important role in the social and economic structure of Korba as this district is rich in forest wealth.Korba district has two forest divisions Korba and Katghora. The major forest products of the district are Mahua, Bija,

Sagon, Sahaj, Tendu leaves, Kahua, Kalmih, Murhi, Mango, Jamun, Khamhar, Kari, Dhaman, Char Sarai, and Tendu.

There are around 68 Gram Van Samitis and 50 Van Suraksha Samitis in the district. (Source:

http://korba.nic.in/kwForest.htm accessed on 1 Sep 2009)
http://korba.nic.in/kwForest.htmhttp://korba.nic.in/kwForest.htm


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5. Profile of Study Villages

Tribals are the major inhabitants of these 24 villages. While Manjhwar, Gond, Kanwar, Rathia, Oraon and Tanwar are

some of the major tribes present in the villages, the Primitive Tribes of Korba and Birhor are also present in these

villages. While the Kanwar community is politically strong with a say in the development of the region, the Tanwar,

Rathia and Oraon are the most progressive tribes.

Jijeevisha Samitee is a NGO working in these villages for implementing livelihoods pro-grams. It has promoted SHGs

(male) in these 24 villages while implementing Promotion of Lac Cultivation program under the BRGF scheme. GTZ

has partnered with this NGO to implement its community governed renewable energy project.

5.1 Demography

S.N. Name of Village Name of Cluster No of House Holds No. of Self Help Group (SHG)

1 Ajgarbahar 95 7

2 Vishrampur 18 2

3 Makhurpani 21 2

4 Narbada 65 4

5 Garhkatra

Ajgarbahar

90 3

6 Chuhiya 190 5

7 Bhatgaon 119 5

8 Muddhowa

Chuhiya

32 2

9 Satrenga 250 9

10 Khairbhawana 80 311 Korai

Satrenga45 2

12 Garhuproda 300 8

13 Kadamjhariya 25 2

14 Ranpa 35 3

15 Hardimahua

Garhuproda

50 6

16 Pondikoha 91 4

17 Dongaghat 93 3

18 Nevratikra

Pondikoha

46 2

19 Tilaidand 51 6

20 Machhlibata 22 1

21 Pandripani 90 2

22 Garhtarha 51 3

23 Kodiaghat 116 5

24 Tungumada

Tilaidand

85 3

5.2 Major Forest Produce and TBOs

Villagers living in all the study villages collect a wide variety of forest produce such as Mahua flower, Mahua seed,

Tendu leaves, Kusum seed, Saal seed, Mushroom, Fuel wood etc.

Source: Jijeevisha Samitee records


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o People are generally aware that seeds of Jatropha can be processed to produce bio fuel which in turn will

generate electricity

5.4 Seasonality of Collection of TBOs at the village level

The above table shows the collection and trading seasonality of TBOs.

Collection of Mahua, Saal and Kusum is restricted to a maximum of two months only. As villagers have no storage

facilities and urgently require money, they are also sold in local markets within 15-20 days of collection. Thus, the

trading season for villagers is also approximately 2 months only. All further trading is dependent on the availability of

stocks with the trader.

5.5 Present usage of TBOs in the study v illages

TBO Parts used Usage

Jatropha Whole Plant Fencing

Whole Tree Lac cultivation

Seed Non edible oil mainly used in skin and livestock diseases

Kusum

Oil cake Acts as a mosquito repellant when burned

Seed Seeds sold and a part of the household collection is expelled foroil used for cooking and external application

Mahua seed

Oil Cake Used as a compost in the farm land and is also sold

Saal Seed Seed Seeds are sold to the State Government

Name of the TBO Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

C CMahua

T T T T T T T T T T T T

C CSaal

T T

CKusum


C C C C CJatropha*


C = Collection Season T = Trading Season

* Presently, Jatropha is collected in non-study villages


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6. Availability of TBOs in the study villages

Assessment Methodology

Discussions within the study villages reflect which TBOs viz. Mahua, Kusum and Saal are collected and sold by them.Participatory Rural Appraisal and Focus Group Discussions with the village community were conducted in all the 6

clusters to understand project village level dynamics of TBOs including collection practices, total amount of oilseeds

collected, amount used for own consumption and the amount sold to markets, seasonality of collection, usage and

marketing practices.

The picture below outlines 24 villages in the 6 study clusters.

Spread of villages in the study cluster

Cluster 1

Cluster 2

Cluster 3 Cluster 4

Cluster 6

Cluster 5


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6.1 Availability of Mahua Oilseed in the 24 project villages

The following tables capture the total number of households collecting mahua oilseed, total quantum collected by

villagers in the study villages, and amount sold in the markets from among the 24 project villages.

Name of the village Total No. hh collecting

Mahua oilseed

Total collection of Mahua

oilseed in the village in ton

Total sales of mahua

oilseed in ton

Satrenga 250 18.0 12.0

Khairbhawana 80 5.8 3.8

Korai 45 2.3 1.6

Sub Total of Satrenga cluster 375 26.0 17.4

Ajgarbahar 95 8.6 5.7

Makhurpani 21 1.9 1.3

Garhkatra 90 8.1 5.4

Vishrampur 18 1.6 1.1

Narbada 65 5.9 3.9

Sub Total of Ajgarbahar cluster 289 26.0 17.3

Garhuproda 300 18.6 15.0

Hardimahua 50 4.6 4.0

Ranpa 35 2.2 1.8

Kadamjharia 25 1.6 1.3

Sub Total of Garhuproda cluster 410 26.9 22.0

Garhtarha 51 5.1 3.6

Kodiaghat 116 11.6 8.1

Pandripani 90 9.0 6.3

Tilaidand 54 5.4 3.8Tungumada 85 8.5 6.0

Machhlibata 22 1.5 0.9

Sub Total of Garhtarah cluster 418 41.1 28.6

Chuhiya 190 4.6 0.0

Bhatgaon 119 1.2 1.2

Muddhowa 32 0.0 0.0

Sub Total of Chuhiya cluster 341 5.8 1.2

Dongaghat 93 6.5 3.7

Nevratikra 46 3.2 1.8

Pondikoha 91 6.4 3.6

Sub Total of Pondikoha cluster 230 16.1 9.2Grand Total 2063 141.9 95.7

Approximately 2063 households collect Mahua oilseed in the 24 study villages. 141.9 ton of Mahua seed is collected of

which 95.7 ton of oilseeds is sold in the market and 46.3 ton is self consumed.


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6.2 Availability of Kusum Oilseed in the 24 project villages

The following table captures the total number of households collecting mahua oilseed, total quantum collected n the

study villages and amount sold.

Name of the village Total No. hh collecting

Kusum Oilseed

Total collection of

Kusum Oilseed in thevillages in ton

Total sales of Kusum

Oilseed in ton

Satrenga 150 3.00 1.50


Korai 27 0.54 0.27






Narbada 39 0.94 0.00




Ranpa 21 0.16 0.00





Pandripani 54 1.30 0.00Tilaidand 32 0.45 0.00

Tungumada 51 1.22 0.00



Chuhiya 190 1.90 0.00

Bhatgaon 119 1.19 0.00

Muddhowa 32 0.32 0.00




Pondikoha 91 0.91 0.00Sub Total of Pondikoha cluster 230 2.30 0.00

Grand Total 1467 23.23 2.25

A total of 1467 households in the 24 study villages collect Kusum seeds. Approximately 23.23 tons is collected, of which

2.25 tons is sold and 20.98 ton is self consumed. Villagers use a traditional method of oil extraction and oil cake is

available as a by-product in the clusters.


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6.3 Availability of Saal Oilseed in the 24 project villages

The following table captures the total number of households collecting mahua oilseed, total quantum collected in the

study villages, and amount sold.

Name of the village Total No. hh collecting Saal

Oilseed

Total collection of Saal

Oilseed in villages in ton

Total sales of Saal

Oilseed in ton

Satrenga 150 4.5 4.5


Korai 27 0.8 0.8






Narbada 39 2.0 2.0




Ranpa 21 0.4 0.4





Pandripani 54 3.2 3.2

Tilaidand 32 1.3 1.3Tungumada 51 2.0 2.0



Chuhiya 152 4.6 4.6

Bhatgaon 119 3.6 3.6

Muddhowa 32 1.6 1.6




Pondikoha 91 4.6 4.6

Sub Total of Pondikoha cluster 230 11.5 11.5Grand Total 1448 64.47 64.47

An estimated 64.47 ton of Saal seed is collected by 1448 households and sold to the State Government appointed

purchase agents.


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6.4 Summary of collection and availability of TBOs in the clusters

Cluster wise TBO collection and availability

The quantum of TBOs (Mahua, Kusum, and Saal) collected and available in each of the 6 project clusters is shown in the

chart below.

Mahua emerged as the top TBO in terms of its availability in the clusters, while Kusum availability was least. Saal

oilseed is available in plenty but being a nationalized item it cannot be sold in open market.

Cluster wise TBO (Mahua, Kusum and Saal) collection and

availability

26 26 26.9

41.1

5.8

16.1

141.9

17.4 17.3

22.0

28.6

1.2

9.2

95.7

4.52.5 2.4 2.5 3.4 2.3

17.6

2.30.0 0.0 0.0 0.0 0.0

2.3

6.88.7

16.7

11.1 9.711.5

64.5

6.88.7

16.7

11.1 9.711.5

64.5

0

20

40

60

80

100

120

140

160

Cluster 1:

Satrenga

Cluster 2

:Ajgarbahar

Cluster 3

:Garhuproda

Cluster 4

:Tileidand

Cluster 5

:Chuhiya

Cluster 6

:Pondikoha

Total in all 6

Clusters

Cluster

Quanti

tyofTBOi

n

tons

Mahua Collected Mahua Available Kusum Collected Kusum Available Saal Collected Saal Available


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Mahua oilseed is found in plenty in 5 clusters of Tileidand, Garhuproda, Satrenga, Ajgarbahar, Pondikoha, but Chuhiya

cluster reported of less collection (drastically reduced production because of pollution). Marketable surplus of Kusum

oilseed was found to be existing in only Satrenga cluster with all the other clusters reporting collection for own usage.

Saal oilseed was found to be collected and sold in all the 6 clusters.

Total quantum of TBOs collected and available in the study clusters for the project

The combined collection and availability of TBOs (Mahua, Kusum and Saal) in each of the 6 project clusters is shown in

the chart below.

A total of 162.5 tons of TBOs is available in the 6 clusters. Hence, a shortfall of 637.5 tons is to be procured from

the nearby markets.

Total Collection and Availability of Mahua, Kusum and Saal

in study clusters for the project

37.3 37.246 54.7

18.929.9

224

26.5 26.038.7 39.7

10.920.7

162.5

0

50

100

150

200

250

Cluster 1:

Satrenga

Cluster 2

:Ajgarbahar

Cluster 3

:Garhuproda

Cluster 4

:Tileidand

Cluster 5

:Chuhiya

Cluster 6

:Pondikoha

Total in all 6

Clusters

Cluster

Quan

tityofTBOi

ntons

Total Collected Total Availability


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6.5 Assessment of Jatropha Oilseed

6.5.1 Assessment Methodology

The communities from the 24 study villages has never collected and sold Jatropha. In order to estimate future

availability of Jatropha production two distinct set of data one from communitys recall of existing Jatropha plantation

and second from the data of the number of plants distributed by Forest Department was collected. Physical

enumeration was conducted to record the growth and the yield potential. The following section deals with the

methodology employed for undertaking the Physical Enumeration.

6.5.2 Methodology for physical enumeration

For physical enumeration, the following methods were adopted:

The plot method was adopted in patch plantation, where a plot of a

specific size (10 m x 10m) was marked in the selected areas with thehelp of rope tied to four pegs, laid at the four corners of the plot.

For road side plantation, sample stretches of 100 m were selected

and plants of both sides of road were studied.

A Transact Walk through the area was undertaken for plot selection.

Sample plots were selected on the basis of topography. Care was

taken to select plots from different habitat types (such as grassland, scrub forest, and area near to water sources)

on a random basis.

Locations near or along the border of human settlements were

generally avoided for productivity estimation of vegetation, to counter

the effects of human and livestock interference.

When the variation in vegetation is high in patch plots, 2 plots were

taken as sample. In the case of uniform vegetation, 1 plot was taken

for study. In a sample plot 20% of the total plant population was

studied on a variety of parameters.

The parameters used were, spacing (plant to plant and row to row)

height of plant, no. of branches and sub branches, canopy size and

girth at base.

Four pegs, rope, measuring tape, and writing materials were the

materials used.

A total of 10 samples (7 plots from patch plantation and 3 roadside)

were analyzed (please see Annex for details) to determine the status of

the plantations against set parameters.

Plantation near water source, 2006

Roadside plantation, 2006

Road side plantation, 2006


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6.5.3 Status of Plantation as derived from physical enumeration

Patch plantation

Status of patch plantationSample No. Survival Rate

(%)Average plant

height (m)No. of branches

and Sub-

branches

Average canopy(sq. m)

Average girth a tbase (cm)

1 58 0.7 2.5 0.307 3.66

2 88 1.46 8.8 0.878 14.9

3 100 1.88 11.4 2.094 35.4

4 72 1.02 7.4 0.36 19.8

5 80 0.65 4.6 0.227 13.4

6 92 1.17 12 3.04 30

7 92 1.316 4.16 0.445 16.5

Average 83.142857 1.17 7.26 1.05 19.09

Road side plantation

Status of Road side plantation

Plot No. Survival Rate

(%)

Average plant

height (m)

No. of branches

and Sub-branches

Average canopy

(sq. m)

Average girth at

base (cm)

1 58 0.918 6.37 0.564 20

2 57 1.12 9.75 0.861 18.12

3 34 0.85 6.83 0.648 16

Average 49.66 0.96 7.65 0.691 18.04

6.5.4 Analysis from physical enumeration

Status of plantation across set parameters is depicted in the table below

Patch Plantation Road Side Plantation

Average branches per tree = 7.26 Average branches per tree = 7.65

Survival rate = 83.14% Survival rate = 49.66%

Average plant height = 1.17 mts Average plant height = 0.96 mts

Average canopy = 1.05 sq.m. Average canopy = 0.69 sq.m.

No pruning till date No pruning till date


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6.5.5 Ideal Plantation and Productivity

Discussion with experts in Chhattisgarh and with National experience described the ideal growth scenario for Jatropha

plantations on certain parameters. The following table details their assessment of the ideal growth after 3 years and 5

years of plantation.

Ideal Situation (After 3 years) Ideal Situation (After 5 years)

A minimum of 2-3 pruning Additional 2-3 pruning

25-30 branches per tree 100-120 branches per tree

4-5 fruit per branch 5-6 fruit per branch

Plant height maintained at 2 m Plant height maintained at 2 m

3 seeds per fruit 3 seeds per fruit

1000-1200 seeds will be around 1kg weight 1000-1200 seeds will be around 1kg weight

Around 300-450 seeds weighing 300 450 gms willbe produced

Around 1500-2160 seeds weighing 1500 2160 gmswill be produced

6.5.6 Yield Potential of the Plantation

The Physical enumeration of the existing plantations highlights that the existing number of branches is almost 1/3 rd of

the ideal situation. Hence, yield per tree based on this finding would be as follows.

Estimated yield per treeTime

Patch Road Side

After 3 years from thetime of plantation

Yield should be (7.26x5x3) =109 seeds or around 109 gms

Yield should be (7.65x5x3) = 114.75 seeds or around 115gms

After 5 years from thetime of plantation

Yield should be (25x6x3) = 450seeds or around 450 gms

Yield should be (30x6x3) = 540 seeds or around 540 gms

Patch Plantation Yield: It is expected that while a yield of 109 gm per tree would be available after 3 years of growth

in the patch plantation, a yield of 450 gm per tree would be available after 5 years.

Road Side Plantation Yield: Similarly it is expected that a yield of 115 gm per tree would be available after 3 years of

growth in the road side plantation and 540 gm per tree would be available after 5 years.

However, lack of best cultivation practices can further impact yield.

6.5.6. Key Observations Plantations have been marked and are supervised by the Beat Officers. There is a lack of community ownership.

The health parameters indicate low growth of plantation. Roadside plantations have a relatively lower survival rate

than patch plantations.

Plantations have not undergone any intercultural operations such as weeding, pruning and fertilizer application.

Pruning is essential in the initial two years to produce secondary and tertiary branches. This leads to the production

of a greater number of flowering bunches. Since this important operation has not undertaken, number of branches

per plant is very low and would produce much less than the ideal yield capacity.


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6.6 Assessment of Jatropha in the 24 project v illages(Recall of Jatropha plantation at the Community Level from the 24 study villages)

The following table captures the communitys recall of Jatropha plantation in the 24 study villages. During the cluster

level FGDs, the community recalled the patch and roadside plantation details which are recorded in the tables below.Data derived from the physical enumeration was used to estimate future production from the plantations after 3 and 5

years respectively.

(a) Patch Plantation

Expected oilseed production in

ton based on physical

enumeration findings

Name of the

cluster

Name of the

villages in the

cluster

Area of patch

plantation in hectares

based on recall of

village community

Total no. of

plants based on

recall of village

community

No. of plants

expected to

survive based

on physical

enumeration

findings

After 3 years

of plantation

After 5 years

of plantation

Satrenga 6 15000 12471 1.36 5.61Khairbhawana 0 0 0 0.00 0.00

1. Satrenga

Korai 0 0 0 0.00 0.00

Sub Total of Satrenga cluster 6 15000 12471 1 1.36

Ajgarbahar 0.4 1000 831 0.09 0.37

Makhurpani 0 0 0 0.00 0.00

Garhkatra 1.2 3000 2494 0.27 1.12

Vishrampur 0.8 2000 1662 0.18 0.75

2. Ajgarbahar

Narbada 0 0 0 0.00 0.00

Sub Total of Ajgarbahar cluster 2.4 6000 4987 1 0.54

Garhuproda 6 15000 12471 1.36 5.61

Hardimahua 4 10000 8314 0.91 3.74

Ranpa 0 0 0 0.00 0.00

3. Garhuproda

Kadamjharia 0 0 0 0.00 0.00

Sub Total of Garhuproda cluster 10 25000 20785 2 2.27

Garhtarah 0 0 0 0.00 0.00

Kodiaghat 0 0 0 0.00 0.00

Pandripani 0 0 0 0.00 0.00

Tilaidand 0.8 2000 1662 0.18 0.75

Tungumada 0 0 0 0.00 0.00

4. Garhtarah

Machlibata 0 0 0 0.00 0.00

Sub Total of Garhtarah cluster 0.8 2000 1662 0 0.18

Chuhiya 0.00 0.00

Bhatgaon 0.00 0.00

5. Chuhiya

Muddhowa

0 0 0

0.00 0.00

Sub Total of Chuhiya cluster 0 0 0 0 0.00

Dongaghat 1.36 5.61

Newartikra 0.00 0.00

6. Pondikoha

Pondikoha

6 15000 12471

0.00 0.00

Sub Total of Pondikoha cluster 6 15000 12471 1 1.36

Grand total 25.2 63000 52376 5.71 23.57

It is estimated that approximately 5.71 tons would be available after 3 years of growth and approximately 23.57 tons ofproduction would be available after 5 years of growth.


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(b) Roadside Plantation

Expected oilseed production in

ton based on physicalenumeration findings

Name of the

cluster

Name of the

villages in thecluster

Area of roadside

Plantation in kmsbased on recall ofvillage

community

No. of plants on

the road based onrecall of villagecommunity

No. of plants

expected tosurvive basedon Physical

enumerationfindings

After 3 years

of plantation

After 5 years of

plantation

Satrenga 2 2000 993 0.11 0.54

Khairbhawana 3 3000 1489 0.17 0.80

1. Satrenga

Korai 4 4000 1986 0.23 1.07

Sub Total of Satrenga cluster 9 9000 4468 1 0.51

Ajgarbahar 4 4000 1986 0.23 1.07

Makhurpani 3 3000 1489 0.17 0.80

Garhkatra 5 5000 2483 0.29 1.34

Vishrampur 0 0 0 0.00 0.00

2. Ajgarbahar

Narbada 0 0 0 0.00 0.00

Sub Total of Ajgarbahar cluster 12 12000 5958 1 0.69

Garhuproda 10 10,000 4966 0.57 2.68

Hardimahua 0 0 0 0.00 0.00

Ranpa 0 0 0 0.00 0.00

3. Garhuproda

Kadamjharia 3 3000 1489 0.17 0.80

Sub Total of Garhuproda cluster 13 13000 6455 1 0.74

Garhtarah 2 2000 993 0.11 0.54

Kodiaghat 0 0 0 0.00 0.00

Pandripani 0 0 0 0.00 0.00

Tilaidand 2 2000 993 0.11 0.54

Tungumada 0 0 0 0.00 0.00

4. Garhtarah

Machlibata 0 0 0 0.00 0.00

Sub Total of Garhtarah cluster 4 4000 1986 0 0.23Chuhiya 0.86 4.02

Bhatgaon 0.00 0.00

5. Chuhiya

Muddhowa

15 15000 7449

0.00 0.00

Sub Total of Chuhiya cluster 15 15000 7449 1 0.86

Dongaghat 0.86 4.02

Newartikra 0.00 0.00

6. Pondikoha

Pondikoha

15 15000 7449

0.00 0.00

Sub Total of Pondikoha cluster 15 15000 7449 1 0.86

Grand total 68 68000 33765 3.88 18.23

It is estimated that approximately 3.88 tons would be available after 3 years of growth and approximately 18.23 tons

would be available after 5 years of growth.

Overall, the above tables reflect that approximately 9.59 tons of Jatropha (from both patch and road side planting) is

expected to be produced after 3 years of growth, 41.8 tons of Jatropha (from both patch and road side) is expected to

be produced after 5 years of growth.


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Page | 29

6.7 Assessment of Jatropha(Using data of Jatropha Plantation in t he Korba Forest Division of Korba District supplied by Forest Department)

In order to arrive at a realistic estimate of Jatropha

availability, statistics available with DFO, Korba along withthe data on proportions of planting in patch and road side

was collected. An informal discussion with the Beat Officer of

Ajgarbahar led to an estimate of the planting being

undertaken by the Forest Department (information shown in

the adjoining box) in the area.

According to the Office of the DFO, Korba 217,000 plants

were distributed in the year 2005-06, 1,400,015 plants in the

year 2006-07 and 4,422,300 plants in the year 2007-08 in the

Korba Forest Division. There was no planting in the year

2008-09 in Korba Forest Division. Range wise data on the

plantation was also collected and was used to assess future

availability of Jatropha.

Assumptions for assessing availability of Jatropha

Data provided by DFO, Korba has been used to assess

the quantity of Jatropha

Discussions with Forest Department reveal that in the

year 2005-06, planting was done in patches, while in2006-07 around 80% was patch planting and 20% was

roadside planting. In the year 2007-08 the entire

planting was by the road side.

The calculations are based on the physical enumeration

and existing management of plantation

The Road side plantation survival rate is 49.66 %

The Patch plantation survival rate is 83.14 %

Assuming a 2m x 2m spacing, the number of plants is 2500 per hectare

After 3 years of growth 109 gms yield per tree is calculated for patch plantation.

After 5 years of growth 450 gms yield per tree is calculated for patch plantation. After 3 years of growth 115 gms yield per tree is calculated for road side plantation.

After 5 years of growth 540 gms yield per tree is calculated for road side plantation.

Physical Assessment

Discussion with the Beat Officer in Korba revealed that in the year2007 plantation was done in the forest areas near the followingvillages

Khairbhawana village

Garhkatra

Ajgarbahar to Kachar (75000)

Phulwaripara A & BNarbada

Kosam Nala A & B

In the year 2008 approximately 180 thousand saplings were

planted in the following road side locations:

Dhangaon to Dongaghat

Ajgarbahar to Bijrabhat

Garhtarha to Kodiaghat Garhtarha to Dongagha

Ajgarbahar to Saraisingh

Pandaripani to Tileidand


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Page | 30

Planting in Year 2005-06

Year Hectarescovered

No. of plants No. of plantsexpected to

survive

Expectedproduction in ton

(after 3 years of

growth)

Expectedproduction in ton

(after 5 years of

growth)2005-06 100 217,000 180,414 20 81

The above table clearly shows 20 ton of expected production after 3 years of growth. Similarly, it is estimated that 81

tons of Jatropha production is expected after 5 years of growth. The production estimates could be delayed by upto 2

years due to poor management.

Planting in Year 2006-07

Patch Plantation

Expected Production in tonS. N. Range Plantation

in Hectares

Total no. of

plants (2m x

2m spacing)

80% patch

plantation

No. of plants expected

to survive based on

physical enumerationAfter 3 years

of growth

After 5 years

of growth

1 Korba 129.76 324400 259520 215765 24 97

2 Balco* 115.28 288200 230560 191688 21 86

3 Kudmura 105.074 262685 210148 174717 19 79

4 Lemru 52.312 130780 104624 86984 9 39

5 Kartala 157.58 393950 315160 262024 29 118

Total 1400015 1120012 93117 8 101 419All the villages are in the Forest Range of Balco

Road Side

Expected Production in tonS. N. Range Plantationin Hectares

Total no. ofplants (2m x

2m spacing)

20%road side

No. of plantsexpected to

surviveAfter 3 years of

growthAfter 5 years of

growth

1 Korba 129.76 324400 64880 32219 4 17

2 Balco* 115.28 288200 57640 28624 3 15

3 Kudmura 105.074 262685 52537 26090 3 14

4 Lemru 52.312 130780 26156 12989 1 75 Kartala 157.58 393950 78790 39127 4 21

Total 16 75

All the villages are in the Forest Range of Balco

The above tables show an estimate of 117 ton of jatropha production after 3 years of growth. Similarly, it is estimated

that 594 ton of Jatropha production is expected after 5 years of growth. The production estimates could be delayed by

up to 2 years due to poor management.


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Planting done in Year 2007-08

Road Side

Expected Production in tonS.N. Range Plantation in

Hectares

Total No. of

plants

No. of plants

expected to

survive

After 3 years of

growth

After 5 years of growth

1 Korba 698.2 1745500 866815 100 468

2 Balco* 365 912500 453148 52 245

3 Kudmura 227.72 569300 282714 33 153

4 Pasarkshet 240 600000 297960 34 161

5 Lemru 238 595000 295477 34 160

6 Kartala 504 1260000 625716 72 338

Total 325 1524

* All the villages are in the Forest Range of Balco

The above table clearly shows 325 ton of expected Jatropha production after 3 years of growth. Similarly, it is estimated

that 1524 ton of Jatropha production is expected after 5 years of growth. The production estimates could be delayed byup to 2 years due to poor management.


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7. Dung Availability

The study villages rear livestock, predominantly cows and also buffalo. There is also a significant population of bullocks

mainly for plowing farmland. The following table captures the number of livestock owned by villagers across the 24study villages

S N Name of Village Name of ClusterNo. of

Cows

No. of

Calves

No. of

Bullocks

No. of Buffalos (male &

female)

1 Ajgarbahar 160 40 75 25

2 Vishrampur 40 15 30 15

3 Makhurpani 90 30 45 35

4 Narbada 60 23 96 24

5 Garhkatra

Ajgarbahar

155 42 80 30

6 Chuhiya 198 54 175 48

7 Bhatgaon 248 82 132 50

8 Muddhowa

Chuhiya

40 10 25 12

9 Satrenga 230 50 180 65

10 Khairbhawana 65 18 42 30

11 Korai

Satrenga

70 25 50 25

12 Garhuproda 210 45 190 45

13 Kadamjhariya 40 12 30 10

14 Rapa 60 15 35 35

15 Hardimahua

Garhuproda

170 40 110 55

16 Pondikoha 93 38 146 2417 Dongaghat 130 42 170 52

18 Nevratikra

Pondikoha

110 35 92 30

19 Tilaidand 30 15 52 24

20 Machhlibata 45 13 35 15

21 Pandripani 120 39 160 35

22 Garhtarha 82 22 110 18

23 Kodiaghat 112 24 190 28

24 Tungumada

Tilaidand

130 40 84 34

Total 2688 769 2334 764

Dung produced in the 24 project villages

S.N. Type of animal Dung/day in ton Annual production of dung peranimal in ton

Annual production of total dung( ton)

1 Cow 0.01 3.65 9,811

2 Calf 0.005 1.825 1,403

3 Buffalo 0.015 5.475 8,519

4 Bullock 0.01 3.65 4,183

Total 23,917


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Page | 33

From the village level discussions, it was clear that cattle graze outside from 8.00 AM to 4.00 PM (8 hrs), thus spending

1/3rd of their time outside the shed. The dung produced during this time period cannot be collected and transported due

to the human effort involved. Hence only 66.66% of the total dung production is collected by the villagers. Hence,

though estimated annual dung production in all clusters from all animals is estimated at 23,917 ton, annual dung

collected in all clusters is estimated to be 15,943 ton.

Usage

Villagers dump the dung in a pit or make heap of it to dry before it is applied as a fertilizer. Approximately 8-10 tractor

trolley loads (each load of 4 tons) are applied on 1 hectare of farm land. This is the only compost which the majority of

villagers apply in their farmland. There has been no incidence of dung being sold by villagers.


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8. Market Dynamics of TBOs

Movement of Mahua oilseed depicting increase in price across the channel

Traders Bilaspur

Traders

Katghora

Rs. 8 12 /

kg

Solvent PlantRaipur

Traders

Korba

Manual Oil Expellers

Primary Collectors

Petty Traders at local haat

Oil Mill at Katghora

24 study villages

Rs. 12.5

15.5 / kg

Traders

Raipur

Rs. 12 15 /

kgTraders

Chhuri

TradersBhaisama

Rs. 14.5 17

/ kg

Rs. 14.5 20

/ kg

Expelling at village level;

oil used for hh

consumption. Oilcake usedin farm land, sold or

discarded

Expellers in Korba


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Page | 35

Movement of Kusum oilseed depicting increase in price across the channel

Movement of Saal oilseed depicting increase in price across the channel

Prices and margins indicated depict the prices prevailing at the point of time in the study.

Rs. 5.5 / kg Primary Collectors

Forest Corporation

24 study villages

Traders Bilas ur

Trader at

Katghora

Rs. 5 6 / kg

Solvent PlantRaipur

Traders at Korba

Manual Oil Expellers

Primary Collectors

Petty Traders at haat

2 stud villa es

Rs. 7.5 8.5 /

k

TradersRaipur

Rs. 7 8 / kgTraders at Chhuri

Trader atBhaisama

Rs. 8.5 9.5 /

k

Rs. 9 10 / kg

Expelling at village level; oilused for hh consumption.Oilcake is used in farm

land, sold or discarded

Ex ellers in Korba


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Page | 36

Market Gateway for the study vi llages

The majority of the TBOs of 24 study villages and of the 50 villages existing in 20 kms radius of these clusters are sold in

the nearby periodic haats and traded by traders located at Korba and Chhuri. These are the first market contact points

for the village communities of these 6 clusters. Katghora is also a major market which is the convergence point oftransactions taking place in the Chhuri market.

The produce is then traded to various markets, most prominently Katghora, Pendra Road, Bilaspur and Raipur. These

markets have a trading relationship with various other markets, most notably with Bhaisama, Jashpur, and

Dharamjaygarh. It was estimated that both Jashpur and Dharamjaygarh markets deal with approximately 375 ton of

Mahua oilseed each.

The following illustration depicts the nature of linkage existing in the abovementioned markets.

24study

villages+ ~ 50

villages

Korba

Chhuri

Raipur

BhaisamaKatghora

Bilaspur Pendra RoadDharamjaygarh

24study

villages+ ~ 50

villages

Korba

Chhuri

Raipur

BhaisamaKatghora

Bilaspur Pendra RoadDharamjaygarh

Inter Linkage of Markets


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Page | 37

Pendra Road

Pendra

Raipur

ChhuriKatghora

Korba

Satrenga

Bilaspur

Major Markets 24 study vil lages

The locations of the major markets and the number of big oil seed traders are given below.

Availability of oilseeds in the major markets

Interaction with traders located in the Korba, Chhuri, Katghora and Pendra Road markets helped to assess the traded

quantities and prices of various TBOs.

The interaction with traders focused upon understanding the availability of TBOs to ascertain their quantum available

and their market channels.

Markets No. of big oilseed traders

Chuhiya 2

Korba 4

Churi 4

Katghora 6

Pendra and

Pendra Road

7

Dharmjayagarh 5

Rampur 4

Note: Interactions were conducted in all the

above mentioned markets except forDharamjaygarh and Rampur. Please referAnnex 1 for t he details of t raders met during

the study.


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Page | 38

Discussions with 2-3 traders in each market were conducted to understand individual quantum traded, followed by a

discussion with the major trader to understand the total market size in terms of the cumulative transactions made by all

traders. The adjoining figure depicts the quantum of TBO (Mahua, Karanj, Kusum and Jatropha) transacted in each of

the markets.

In terms of the gross amount traded, Mahua seeds emerged as the top oilseed followed by Karanj and Kusum in these

markets. While Katghora emerged as the largest market hub for Mahua trading with around 1575 tons of trading,

Pendra Road was a close second with approximately 1350 tons traded. Korba market transacted around 1125 tons and

Chhuri transacted approximately 675 tons.

Karanj is not available in the study clusters, but Katghora market trades around 60 tons followed by Chhuri and Korba

where 45 and 30 tons are traded.

Approximately 30 tons of Kusum is traded in the market of Korba and 45 tons is traded in the Chhuri market. Katghoratrades around 23 tons of Kusum.

Jatropha is traded only in the Pendra market where approximately 900 tons is traded.

Observations: Jatropha Traders Dynamics in Pendra Road area

Presently Jatropha seeds are used mostly for seedling and research purposes by various Government and Non

Government Organizations, leading to higher cost of the seeds. It is observed by the traders that the real cost of

TBO Transaction in major markets

1125

675

1575

1350

30

45

60

0

30

45

23

38

0

0

0

900

0 200 400 600 800 1000 1200 1400 1600 1800

Korba

Churi

Katghora

Pendra Road

Mar

kets

quantity in tons

Mahua oilseed Karanj oilseed Kusum oil oilseed Jatropha oilseed


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Page | 39

Jatropha oilseed will emerge in 3-4 years of time when the mature oilseed production will hit the markets. But, with

ever increasing demand and inadequate supply, the gestation period may increase to around 5 years.

Last year the trading of Jatropha seeds started from Rs.17000 Rs.18000 per ton, but within one month the price

shot to Rs.35000 per ton. The seed cost had gone up to a maximum of Rs.55000 per ton last year. These high costs

reduced in part due to heavy rains during flowering stage production of Jatropha. As a result, yield dropped

drastically (about 25 truck loads were traded), but in a good yield situation the turnover may increase up to 75 truck

load (last to last year)

During the discussions, traders showed interest in along term feedstock supply agreement with the project at

market prices (negotiable). However, it will be extremely important to pick up right trader who can ensure both

quantity and quality.

This year approximately 3 truckloads (each truck load s 15 tons) of Jatropha were sent to a Gurgaon based firm by a

Pendra Road trader @ Rs. 22000 per ton (price inclusive of delivery at Gurgaon). Further, Global Herbs procured 3

truck loads of seed from Pendra Road market. Reliance procured Jatropha seeds from Pendra Road market and

Devas for plantation purpose

Local traders undertake trading activity during the month of January to April when they procure from farmers/small

village based traders and sell to different parties across India

Traders generally manage transport of Jatropha in the down trip with the trucks carrying consumable items from

Raipur to Pendra Road.

Jatropha from local haats villages within 100 km radius are traded through the Pendra Road market. Jatropha from

several villages of Madhya Pradesh also come to this market.

Small NGOs who require lower quantities of seed (mainly for sapling purpose) are ready to pay a premium for good

quality Jatropha seeds.

Last years production is still in stock in the Pendra Road market and if it does not get sold by the time new stocks

arrive, it would be mixed with the fresh produce due to come to market in this year.

As the traders of Pendra Road said, presently there is no defined market for linkage of Jatropha seeds. Demand is

throughout the year from different markets as required.

A total of 10 truck load of Jatropha seed was available in Pendra Road market with all the big traders during the

time of the study

Traders quoted a price of Rs. 15000-17000 per ton (delivery at destination) for an instant order.

Other major markets for TBOs

TBO Other Major Markets

Mahua Bastar, Jagdalpur, Orissa, MaharashtraKaranj Jagdalpur, Orissa, Maharashtra

Kusum Bastar, Jagdalpur, Orissa, Maharashtra

Jatropha Sahdol, Umaria, Bilaspur, Bastar and Udaipur in Rajasthan


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9. Procurement Dynamics

GTZ plans to set up six expelling units to extract oil and oilcakes for the renewable energy based electricity generationplant. It was estimated that the community in the project villages would be able to collect 800 ton. It is evident from our

assessment that the present availability of TBO is only 100 ton. The potential production of Jatropha is presently

assessed as non-existent. Therefore there is a need to procure about 700 ton of TBOs from other sources.

The major trade centres in the area aggregate significant stocks of TBOs which can be procured. The project can target

the trade intermediaries as part of the project to assure regular procurement. Presently there are no institutional buyers

and therefore the trade intermediaries have no alternate market to sell the TBO stocks.

It was also observed that there is only two months of availability of TBOs in the village markets and only a few big

traders stock up for future trading. This can be a hindrance to local procurement for the project. It may be important to

sign up agreements with some of the major traders for unhindered procurement of oilseeds. The research team

determined that the local traders are not familiar with the concept of contracted supplies and are more acquainted with

spot trading mechanisms. Therefore the project may find it difficult to get suppliers at fixed rates or government

regulated rates.

This section brings out the availability of TBOs in different markets and their purchase price. The total procurement

cost per ton including the transportation cost from these markets to cluster has been reflected to depict the complete

scenario.

Assumptions

Transportation Cost of a 10 wheeler truck (15 ton carrying capacity)

o Rs. 200 per ton from Korba and Churi market to cluster

o Rs. 250 per ton from Katghora market to cluster

o Rs. 300 per ton from Pendra Road market to cluster

Purchase from cluster

o Average purchase price of Mahua seed is Rs. 8000-12000 per ton

o Purchase price of Kusum seed is Rs. 5000-6000 per ton

Purchase from Korba / Chhuri market

o Purchase Price of Mahua seed is Rs. 12000-15000 per ton

o Purchase Price of Kusum seed is Rs. 7000-8000 per tono Purchase Price of Karanj seed is Rs. 6000-7000 per ton

Purchase from Katghora market

o Purchase Price of Mahua seed is Rs. 12500 15500 per ton

o Purchase Price of Kusum seed is Rs. 7500 8500 per ton

o Purchase Price of Karanj seed is Rs. 6500-7500 per ton

Purchase from Pendra Road market

o Purchase Price of Mahua seed is Rs. 12500 15500 per ton

o Purchase Price of Kusum seed is Rs. 7500 8500 per ton

o Cost of purchase of Jatropha is Rs. 17000 22000 per ton


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Page | 41

Summary of Quantity of TBO, Purchase Price, Transportation Costs at nearby market points

(a) Churi and Korba markets

Churi KorbaTBO /Market

QA1

(ton)

PP2

(Rs./ton)

Simple

avg. PP

(Rs./ton)

TC3

(Rs./ton)

TPC4

(Rs./ton)

QA

(ton)

PP

(Rs./ton)

Simple

avg. PP

(Rs./ton)

TC

(Rs./ton)

TPC

(Rs./ton)

Mahua 675 12000 -15000

13500 200 13700 1125 12000 -15000

13500 200 13700

Karanj 45 6000 -7000

6500 200 6700 30 6000 -7000

6500 200 6700

Kusum 45 7000 -8000

7500 200 7700 30 7000 -8000

7500 200 7700

Jatropha 0 - - - - 0 - - - -1 QA: Quantity Available, 2PP: Purchase Price, 3TC: Transportation Cost, 4 TPC: Total Procurement Cost

(b) Katghora and Pendra Road markets

Katghora Pendra RoadTBO /

Market QA1

(ton)

PP2

(Rs./ton)

Simple

avg. PP

(Rs./ton)

TC3

(Rs./ton)

TPC4

(Rs./ton)

QA

(ton)

PP

(Rs./ton)

Simple

avg. PP

(Rs./ton)

TC

(Rs./ton)

TPC

(Rs./ton)

Mahua 1575 12500 -

15500

14000 250 14250 1350 12500 -

15500

14000 300 14300

Karanj 60 6500 -

7500

7000 250 7250 NA NA NA NA NA

Kusum 23 7500 -

8500

8000 250 8250 38 7500 -

8500

8000 300 8300

Jatropha 0 - - - - 900 17000 -

22000

19500 300 19800

1 QA: Quantity Available, 2PP: Purchase Price, 3TC: Transportation Cost, 4 TPC: Total Procurement Cost

Cost of Procurement of TBO from 6 clusters

TBO Total quantityin 6 clusters

(ton)

Purchaseprice of

oilseeds inRs./ton

Simple AvgCost of

procurementin Rs./ton

TransportationCost in Rs./ton

TotalProcurement

Cost in Rs./ton

Average Cost ofprocurement in

Rs

Mahua 96 8000-12000 10000 150 10150 971355

Kusum 2 5000-7000 6000 150 6150 12300

Saal 64 5500 5500 150 5650 361600


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Overall Availability of TBO in the clusters and nearby markets

The overall availability of TBO in cluster as well as nearby markets has been captured in the diagram below.

Clusters


Korba


Karanj oilseed = 30 tons @ Rs. 6700/ton

Churi


Katghora


Pendra Road



30 kms

35 kms

45 kms

160 kms

Clusters


Korba


Karanj oilseed = 30 tons @ Rs. 6700/ton

Churi


Katghora


Pendra Road



30 kms

35 kms

45 kms

160 kms


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Possible Procurement Mechanism

A multi-source procurement mechanism will be important to ensure procurement of the desired quantity of TBOs. Any

procurement mechanism must take care of 3 aspects, namely, quantity available at the source, purchase price and

transportation cost to decide on the procurement mix.

The Project may procure TBOs from different sources viz. study villages, oilseed traders and Forest Corporation (for

Saal seed). It is understood that the major actors at community level facilitating procurement would be individual

collectors, SHG, VEC and NGO. The following diagram illustrates various sourcing points along with the mechanism of

procurement.

There are three different procurement scenarios emerging from the study, which may partially fulfill the demand.

Firstly procurement directly from the primary collectors located in the study villages. Secondly from the SHG that can

work as aggregators helping the project to secure the produce in bulk. This would help in reducing the lifting points but

would require additional handling costs at SHG level. It is also important to note that SHG as a player in the

procurement will only be sustainable if it has an economic basis. Hence, a commission based business model may be

adopted. Thirdly, since the nearby markets have bulk availability of TBOs, they are an important source of

procurement. In all the cases VEC need to play a role of planning and managing procurement along with other defined

roles and responsibilities.

Apart from these scenarios, petty traders, who are the most important link between trader and the community, may beengaged in the procurement process. They may be used to source TBOs in the villages and markets and procure it on

behalf of VEC on a business proposition basis. A Marketing Associate can be attached to each expelling unit (conceived

by the project) where both petty traders and youth can be involved (refer annex-2 for details).


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10.Marketing Potential of Organic Manure

Major Crops and Fertilizer usage at the village level

Paddy is the main crop cultivated by most of the families. Kharif paddy is cultivated under rainfed condition from the

Southwest Monsoon from June to November. The only compost used is cow-dung. Discussions reveal that farmers

generally apply cow-dung after a gap of 3 years. Some farmers holding Kisan Credit Card (KCC) have started applying

chemical fertilizers like Urea, Potash, and DAP on their land but there is hardly any use ofbio-fertilizer by the farmers.

Bio Manure Dynamics

There are institutions, line departments and agencies that require fertilizers in bulk. Highlights of interactions with

some of the major players are as follows:

Agriculture Department

The Department promoted Vermi-compost and NADEP compost through capacity building programmes at community

level. These products are produced and used within the community. For demonstrations of organic farming,

department supplies bio-fertilizers particularly bacterial culture e.g. Rhizobium and Azotobactor to farmers. For supply

of bio-fertilizer, the office of the Block Development Officer (BDO) gives a requisition to District Agriculture Office and

the District Agriculture Officer procures the material from fertilizer dealers and supplies it to the Block office.

Last year procurement of bio fertilizer in Korba block was approximately 5,000 packs (each pack is of 200 gms) i.e. oneton of bacteria culture and 50 litres of liquid fertilizer. It is estimated that across the 5 blocks of Korba district about 5

ton of bacteria culture and 250 litres of liquid fertilizer are used

Fertilizer dealers in Korba and Bilaspur

There are five major fertilizer dealers are located in the Korba district town and also fertilizer retailers present in each

block. They have not seen increased demand for bio-manure from among the local farming community. The major

demand for vermicompost is from the towns and not from rural areas. There is a low incidence of application of bio

manure in Korba district.

Bone meal and neem cake are sold and purchased largely by nurseries located in cities and people who have interest in

floriculture. Distributors are reluctant to stock bio manure and only large fertilizer companies are able to force sell it to

the supply chain.

One of the trade practices prevalent in fertilizer marketing is the offering of credit. Therefore, the business necessarily

requires a huge investment. The credit period extended by companies to distributors is up to 60 days.

A distributor located at Bilaspur has dealt with bio-fertilizers marketed by Excel. Around nine truck loads

(approximately 100 tons) were sold by him over a span of two years. He attributed Excels grass root presence at the

farm level and aggressive marketing strategy as key driver for such sales. However, he has been unable to sell even one


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Truck load (approximately 11 tons) of bio-fertilizer marketed by Coromandel in the past one year. One fertilizer retailer

in Korba town sold the maximum bio manure of about 8 tons.

Oil Expeller unit (Neem)

The owner of the oil expeller unit based in Bilaspur revealed that neem cake is mostly sold to government departments,

big nurseries and NGOs promoting sustainable agriculture. It is sold on credit and it is difficult to get timely payment

from govt. departments. The price of neem cake varies from Rs. 6000 to Rs. 8000 per ton.

NABARD-WADI program implemented by JJS

JJS is implementing NABARDs WADI program and is to cover 500 acres (1 farmer-1acre) by 2010-11. Approximately 55

plants per acre are to be planted and 2.2 kg fertilizer per plant is to be applied. Hence, the NGO will have to purchase 55

tons of fertilizer indicating a large captive demand. JJS purchased neem cake @ Rs. 7.5 per kg from a Bilaspur based

expeller under the program.

11.Need for Electricity

Of the 24 study villages electric grid is still to reach 3 villages. As per the community interaction only seven villages of

the 24 study villages have used electricity. Electricity connection was subscribed by few domestic households in the

villages but there were defaults in payments, leading to disconnections. Electricity consumption was metered but even

then payments were not made. Currently the electrified villages are not supplied with electricity.

PRA and FGD discussions with villagers revealed that they do wish to get electricity for household consumption, mainly

for lighting purpose. In many discussions electricity was sought to ensure a bright future for their children, allowing

them to study after dark. In addition, villagers expressed need for electricity for commercial use e.g. running irrigation

pumps, starting agri processing units and other enterprises (Light Systems, Decoration Systems, Shops and Audio-

Video Shops). They also had an inclination to pay for the electricity consumed at each household level on the condition

that they receive a regular supply with no voltage fluctuation as faced with grid supply.


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Annex 1

List of Contact Persons

S.N. Name of the Respondent and Location Contact No

1. M Khan, Korba Forest Division, Korba 9827985074

2. M Adil, CG Agro Tech Society, Raipur 9425503484

3 Anand Tamrakar 9893598303

4 P K Jain, CREDA, Korba 9827175171

5 Bajrang Agarwal, Katghora (Trader) 9893222713

6 Pawan Agarwal, Katghora (Trader) 9893396077

7 Dhanraj Kashori, Pendra Road (Trader) 9425226436, 07751-2201368 Ashok Jain, Pendra Road (Trader) 9424159767

9 Anuj Jain, Pendra Road (Trader) 9407777775

10 Om Prakash Agarwal, Katghora (Trader) 9893810900

11 Vicky Agarwal, Katghora (Expeller unit) 9893810800

12 Ramesh Kr. Agarwal, Churi (Trader) 9993309275

13 Jawahar lal Patel, Churi (Trader) 9981512609/5

14 Dhanu Agarwal, Churi (Trader) 9893475562

15 Secretary GP, Ajgarbahar 9926888636

16 Shyam Sundar Agrawal - Sadashiv Cattle Feed, Korba 9425532038

17 Jayanta Choudhury IKF 9406113780

18 Gagan Pal, D1-BP Fuel Crops, Raipur 9827921778, 0771-400114519 Sumit Sarkar, Regional Manager, D1- BP Fuel Crops, Raipur 9755044078

20 R S Chandrakar, Krishak Sathi, Bilaspur 9425530635

21 Vijay Sachdev, Raipur (Expeller unit owner) 9826126955

22 Sunil Sachdev. Raipur (Expeller unit owner) 9826122131

23 Manoj, ex-employee, Reliance, Pendra Road 9754357162

24 Md. Ejaj, Raipur (Trader) 9425501027

25 Jograj Chandak, Raipur (Trader) 9425505687

26 Pawan Sachdev, Raipur (Expeller unit owner) 2527565

27 Mahesh Kumar Agarwal, Korba (Expeller unit owner) 9301770261

28 Pawan Agarwal, Pendra Road (Trader) 9993890899

29 Juma Seth, Korba (Trader) 24712830 Kanta Prasad Gupta, Marwahi (Trader) 9425938598

31 Dinesh Tiwari, Pendra Road (Traders) 9329961564

32 R. S. Chandrakar, Krishak Sathi, Bilaspur 9425530635


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Annex 2

(I) DISCUSSION GUIDE FOR PRA AND FOCUS GROUP DISCUSSION AT CLUSTER LEVEL

Instructions:

Draw a map on chart paper with N/S+E/W directions

Draw the location of the villages and demarcating the forest area

1. Name of the cluster ________________________________________

2. General profile of the villages in the Cluster

S.N. Name of the

participatingvillages

Gram

Panchayat

Block Total

HH

No. of Gram Van

Samiti (GVS)

No. of Van

SurakhsaSamiti (VSS)

No. of

SHGs

1

2

3

4

5

3. Forest based Livelihood

What are the major forest produce you collect?

Where do you go to collect the forest produce? How far is the forest from your village? Who generally collects forest produce? (Male, Female, Children)

What is the usual quantity collected per household during the season?

What is the seasonality of collection?

Major Issues at different levels (Pre production/collection, production/collection, post production/collection and marketing) in

taking the product

What would be the total quantum forest produce sold by villagers?

To whom do you sell the forest produce?

What are the average sales you get from selling the TBOs?

What is the price you get for different TBOs?

S N Name of NTFP Collection period(Months)

No. of daysharvesting

Quantitycollected/hh/day

SellingPriceRs/kg

1 Mahua flower

2 Mahua seed

3 Kusum

4 Jatropha

5 Neem

6

7


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Page | 48

4. TBO Assessment

TBO Village/Cluster Area under

Plantation

No. of trees

present / trees

planted

Status of

plantation

Approx quantity

of production

(oilseeds)

Approx quantity

collected

(oilseeds)

Jatropha

Neem

Karanj

Kusum

Mahua

Others

What is the current usage of oil seed/oil cake (both non-edible and edible) etc. at your level?

Demand of the product and marketing channels (no. of traders, place, price etc.)

Where are the expelling units located? How far you travel? What is the general terms and conditions of expelling? (probe on

service charge and oil cake related) Which is the most preferred channel? Why?

What are the various legal and policy issues and constraints at collection and movement of the produce?

5. Major crops and Input required

What are the major crops you grow?

What are the major inputs required by you and in what quantities?

Where from do you purchase these inputs (focus more on fertilizers)?

What is the price of major fertilizers?

Do you use organic/bio-fertilizers? What is the frequency of usage and cost incurred towards its purchase?

6. Electricity Need/Gap:

Name of the village Electricity available or not Need / gap of electricity Potential use of electricity


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(II) CHECKLIST OF INFORMATION: TRADERS

Name of the trader: _____________________ Location of the Trader _______________

Stock profile

Which all Agriculture/forest commodities do you deal in?

Do you deal in TBO (edible and non edible oil seed)?(probe for the types of seeds i.e. Jatropha, Karanja, Kusum, Mahua, Sal and

Neem etc. in detail)

Since how long you are involved in this business?

How many traders are involved in same business in your locality?

Which types of people are involved in procurement & supply of TBO? (Probe for individual/community)?

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