Vegetable Supply Chain- NABARD-Gharwal

8/2/2019 Vegetable Supply Chain- NABARD-Gharwal

1/69

1 | P a g e

1. INTRODUCTIONThe study of supply chain of spices and vegetables in Uttarakhand is very much important

for development of farmers living standard as well as development of the states economy as

a whole. It is also important to study different stakeholders from the input suppliers to the

final customer along with the indirect stakeholders like private money lenders and

institutional lenders. A supply chain or logistics network is the system of organizations,

people, technology, activities, information and resources involved in moving a product or

service from supplier to customer. Supply chain activities transform natural resources, raw

materials and components into a finished product that is delivered to the end customer. In the

traditional vegetable supply chains, only vegetables of superior quality are purchased fromfarmers at the regional vegetable collecting centres and they are paid a premium price for

such vegetables. In the traditional vegetable supply chains the post harvest losses are as high

as 35 to 40 percent. This is a serious problem with regard to the traditional vegetable supply

chains, as a considerable portion of the total harvest is lost and the cost is ultimately borne by

the producer and the consumer.

Uttarakhand, a state with diversified climatic conditions has the potential to produce a

variety of horticultural crops and contributing a lot towards the national income however the

state suffers from different mismanagement practices in the spices and vegetable supply

chain, which includes infrastructural, technological as well as credit financial (credit related)

problems. Fragmentation of supply chain is another problem. The state is comprises of13

districts, ten hills and three plains with uneven topography and unmatched cultures. So the

state needs different and improved management practices and approaches than that of the

other states. Agro-climatic conditions in hills are capable of supporting growth of variety of

crop plants. Thus, opportunities exist for intensification and diversification of agriculture torealize yield potential of improved crop varieties. More than three-fourths of total population

of Uttarakhand depends on agriculture for their livelihood and the economy is predominantly

dependent on mountain agriculture in the hill districts. However, the land holdings are small

and fragmented and irrigation facilities in these areas are limited. Soil and water conservation

is another issue for inclusive development. For physical, geographical and environmental

reasons, the scope for agricultural policies based on modern input-intensive agriculture is

severely constrained in the hill regions. As a result, the majority of the rural population in the

hills either survives on subsistence agriculture or migrates to other parts of the country for

employment. The state faces the challenge of promoting livelihoods to retain people through


2/69

2 | P a g e

local employment and income generation and to enhance their quality of life. At the same

time, the hill districts of Uttarakhand have tremendous potential. The vast natural resources

add to the states attractiveness as an investment destination, especially for tourism and

agriculture- and forest-based industries. Also, it is the first one to be called an organic state.

Uttarakhand is primarily an agricultural state although its share in the countrys total area and

production is very small. The contribution of agriculture to the states domestic product is

about 22.4 per cent and the population dependent on agriculture for their livelihood is about

75 to 85 per cent. The development of the hills is primarily linked to the development of

agriculture and its allied activities. Since the hills are constrained in the development of

large-scale industrialization, and due to infrastructure constraints the development of the

service sector is also constrained, the growth and development of the agriculture sector

remains the prime focus.

1.1 Company profile

National Bank for Agriculture and Rural Development (NABARD)

The present study on Status of Supply Chain Management of Vegetables in

Uttarakhand with special reference to the vegetable growing clusters of Agrakhal and

Maletha (Tehri Garhwal District) was undertaken under the summer placement scheme of

NABARD.

NABARD is set up as an apex Development Bank with a mandate for facilitating

credit flow for promotion and development of agriculture, small-scale industries, cottage and

village industries, handicrafts and other rural crafts in 1982. NABARD was established in

terms of the Preamble to the National Bank for Agriculture and Rural Development Act, "for

providing credit for the promotion of agriculture, small scale industries, cottage and village

industries, handicrafts and other rural crafts and other allied economic activities in rural areaswith a view to promoting IRDP and securing prosperity of rural areas and for matters

connected therewith in incidental thereto". The Act was amended by Act No. 81 of 1985, Act

No. 66 of 1988, Act No. 55 of 2000 and Act No. 48 of 2003.

The mission of the bank is Promoting sustainable and equitable agriculture and rural

development through effective credit support, related services, institution building and other

innovative initiatives.
http://www.nabard.org/nabardact.asphttp://www.nabard.org/nabardact.asp


3/69

3 | P a g e

Major role and functions of NABARD are-

1. NABARD is an apex institution accredited with all matters concerning policy,planning and operations in the field of credit for agriculture and other economic

activities in rural areas.

2. It is an apex refinancing agency for the institutions providing investment andproduction credit for promoting the various developmental activities in rural areas.

3. It takes measures towards institution building for improving absorptive capacity of thecredit delivery system, including monitoring, formulation of rehabilitation schemes,

restructuring of credit institutions, training of personnel, etc.

4. It co-ordinates the rural financing activities of all the institutions engaged indevelopmental work at the field level and maintains liaison with Government of India,

State Governments, Reserve Bank of India and other national level institutions

concerned with policy formulation.

5. It prepares, on annual basis, potential credit plans for all districts in the country; theseplans form the base for annual credit plans of all financial institutions engaged in rural

areas.

6. It undertakes monitoring and evaluation of projects refinanced by it.7.

It promotes research in the fields of rural banking, agriculture and rural development.

1.2Problem statementUttarakhand is a large, low-cost producer of vegetables and horticulture is a sector

with huge export potential. But, high transportation costs, inadequate storage facilities, a

fragmented supply chain, poor technological inputs, poor irrigation network and weak quality

standards at home are eroding its competitiveness. 30 to 40 percent of the vegetables being

wasted as post harvest losses have eventually resulted in producers receiving a very low pricefor their produce while at the other end the consumers are compelled to pay a highly inflated

price for their purchases.

The infrastructure in Uttarakhand in terms of road, rail and rail links are not sufficient.

It is compounded by challenges like lack of market intelligence, lack of warehouses,

transportation etc. The information system is very much poor and farmers are unaware of the

new technologies, schemes etc.

Along with this, problems regarding credit availability to the farmers are also

frequently found. This includes higher cost of credit, time consuming formalities,
http://www.rbi.org.in/http://www.rbi.org.in/http://www.rbi.org.in/


4/69

4 | P a g e

unawareness etc. Considering this facts, the present study has been undertaken entitled

Status of Supply Chain Management of Vegetables in Uttarakhand with special reference to

the vegetable growing clusters of Agrakhal andMaletha (Tehri Garhwal District)

1.3 Objectives

In the light of the above facts and problems the objectives of the research are stated as

follows-

1. To study the status of existing supply chain management for vegetables grown by thefarmers in the selected clusters in Uttarakhand.

2.

To study the technologies and practices used by farmers of particular areas ofUttarakhand in spices and vegetable production, transport, storage and marketing.

3. To study the financial aspects of spices and vegetable supply chain managementconsidering participation of MFIs, RRBs, SHGs as well as commercial banks.

4. To propose an improved strategy for spices and vegetable supply chain managementin uttarakhand.


5/69

5 | P a g e

2. OVERVIEW OF VEGETABLES AND SPICES INDUSTRYVegetable and spices cultivation in India dates back to several centuries before the

dawn of Christianity (Kaul, 1989). More than 40 kinds of vegetables belonging to different

groups are grown in the country, right from the sea level to areas close to snow line. India is

second largest producer of vegetables, next only to China. India ranks first in the world in

production of cauliflowers and pea and second in world in production of broccoli, brinjal and

onion. At present, vegetables are grown on five million hectares of land in the country.

Quantitatively, vegetable ranks after rice and wheat in Indian diet (Dey, 2005). These are the

main sources of supplying all the essential nutrient elements required by human body.

India is the country considered as Home of spices. There are different spices present

in India like ginger, turmeric, chilli, cardamom, cassia, clove, coriander etc India is the

country considered as Home of spices. It was the lure of spices that brought Portuguese,

French, and British to Indian shores.

India bestowed with wide range of agro climates and biodiversity produces 125887

thousand MT of vegetables from an area of 7803000 hectares with average productivity of

16.1 MT/ha and produces 4103 thousand MT of spices in an area of 2603000 ha with average

productivity of 1.6 MT/ha. The percent share of vegetables and spices in production of

horticultural crops in India are 60.84 and 1.98 respectively. The percent share of vegetables

and spices in area under horticultural crops in India are 39 and 13 respectively (Indian

Horticulture Data Base 2008, National Horticulture Board).

In vegetables production, India is next only to China having a share of 14.4% to the

world production. Adoption of high yielding cultivars and FI hybrids and suitable production

technologies has largely contributed for higher production and productivity. Per capital

consumption has also increased from 95 gram to 175 gram per day. More than 40 kinds of

vegetables belonging to different groups, namely cucurbits, cole crops, solanaceous, root and

leafy vegetables are grown in different agro-climatic situations of the country. But Indias

share in global vegetables trade has remained at only 1.7 per cent.

In India the leading producers of vegetables are West Bengal (17%), Uttar Pradesh

(15%) and Bihar (11%) and in spices Andhra Pradesh (30.1%), Rajasthan (12.7%) and Gujrat

(8.7%). Major vegetables and spices produced in India along with their percent share in area

and production are given below-


6/69

6 | P a g e

Table 2.1 Percent share of different spices and vegetables in area and production in India

CROP

% SHARE IN

AREA

% SHARE IN

PRODUCTION

VEGETABLES

POTATO 22.9 27.4

ONION 10.3 9.7

TOMATO 7.3 8.2

BRINJAL 7.3 7.6

SPICES

CHILLI 30 30

TURMERIC 7 20

GARLIC 6 20

GINGER 4 9

Source- Indian Horticulture Data Base 2008, National Horticulture Board

But In India 30 to 40 percent of the vegetables being wasted as post harvest losses

have eventually resulted in producers receiving a very low price for their produce while at the

other end the consumers are compelled to pay a highly inflated price for their purchases.

There are 5100 cold storages in India but 60% of them are present in only 6 states and 83%

are for only potato, which is a major problem. Even transport costs to international markets

are 20 to 30% higher in India compared to other countries.

2.1 Present status of vegetable and spices industry in the state of Uttarakhand

With four agro climatic zones viz. Cold desert- Nilong valley, alpine zone- Gangi,

temperate- Dhanolty and Subtropical zone-Rishikesh Uttarakhand offers great opportunity for

sourcing of horticultural commodities due to its diverse agro climatic conditions, small size

land holding and cheap labours. Vegetables and spices produced can be sourced from the area

of abundance to supply them to the promising and profitable market. Substantial areas are

under vegetable cultivation both hilly areas and plains.

Uttarakhand offers great opportunity for sourcing of horticultural commodities due to

its diverse agro climatic conditions, small size land holding and cheap labours. Peas, potato


7/69

7 | P a g e

and tomato are major vegetables and ginger, turmeric, garlic and chilli are major spices being

produced in Uttarakhand. These commodities can be sourced from the area of abundance to

supply them to the promising and profitable market. The area under fruit cultivation is quite

high in Uttarkashi and, in almost all the hill regions, substantial areas are under vegetable

cultivation. The hill districts of Uttarakhand have diversified into the production of

condiments and spices like chillies, ginger, and garlic. Almora, Tehri, Champawat,

Pithoragrh etc seem to be the promising districts for its production. A wide range of agro

climatic conditions of the state are suitable for off-season production of vegetables for

sustainable income to farmers. Different offseason vegetables found are tomato, cauliflower

etc.

The area under vegetables is 80.584 thousand ha and production is 1036.2 thousand

MT. The average productivity is 12.9 MT/ha and area under spices is 3.3 thousand ha.

Production of spices is 2.9 thousand MT and average productivity is .9 MT/ha (Indian

Horticulture Data Base 2008, National Horticulture Board), which is low, and can be doubled

with the different technological interventions.

Traditional spices and vegetable supply chain in uttarakhand the engage in moving

vegetables from the producer to the consumer are prone to various sources of inefficiencies.

Farmers in vegetable producing areas are unable to attract competitive buyers. Many of the

farms are located in relatively isolated areas, a considerable distance from improved roads

making access to competitive markets difficult and costly. Lack of bargaining power along

with various credit bound relationships with the buyers has lead to farmers being exploited

during transaction, where most of the farmers become price takers. The structure of the

traditional vegetable supply chains is such that there are a large number of intermediaries

(e.g. vegetable collectors, transporting agents, commission agents etc.) between the producer

and the consumer. Addition of the marketing margins of all these intermediaries coupled with

almost 30 to 40 percent of the vegetables being wasted as post harvest losses have eventually

resulted in producers receiving a very low price for their produce while at the other end the

consumers are compelled to pay a highly inflated price for their purchases.

Agro-climatic conditions in hills are capable of supporting growth of variety of crop

plants. Thus, opportunities exist for intensification and diversification of agriculture to realize

yield potential of improved crop varieties. More than three-fourths of total population ofUttarakhand depends on agriculture for their livelihood and the economy is predominantly

dependent on mountain agriculture. However, the land holdings are small and fragmented and


8/69

8 | P a g e

irrigation facilities are limited. Soil and water conservation is another issue for inclusive

development. For physical, geographical and environmental reasons, the scope for

agricultural policies based on modern input-intensive agriculture is severely constrained in

the hill regions. As a result, the majority of the rural population in the hills either survives on

subsistence agriculture or migrates to other parts of the country for employment. The state

faces the challenge of promoting livelihoods to retain people through local employment and

income generation and to enhance their quality of life. At the same time, the hill districts of

Uttarakhand have tremendous potential. The vast natural resources add to the states

attractiveness as an investment destination, especially for tourism and agriculture- and forest-

based industries. Also, it is the first one to be called an organic state. Uttarakhand is primarily

an agricultural state although its share in the countrys total area and production is very small.

The contribution of agriculture to the states domestic product is about 22.4 per cent and the

population dependent on agriculture for their livelihood is about 75 to 85 per cent. The

development of the hills is primarily linked to the development of agriculture and its allied

activities. Since the hills are constrained in the development of large-scale industrialization,

and due to infrastructure constraints the development of the service sector is also constrained,

the growth and development of the agriculture sector remains the prime focus.


9/69

9 | P a g e

Exhibit 2.1Prevailing supply chain structure in India and Uttaranchal

Farmers

Produce

Middle Men

(Wholesalers,

commission

Consumers

Processing

Plant

Mandi

Small Vegetable

Shops

Different processed

Products like Ketchup,

Puree, and Paste

Direct To

consumer

Direct SellingProcessor

Seed companies Fertilizer

companies

Plant protechtion

materials

Labors

Private money

lender

Institutional

lender


10/69

10 | P a g e

2.2 District Profile- Tehri Garhwal

Tehri garhwal district is situated in North West of Uttarakhand state and lies between

latitude 30.03 N and 30.30 N and longitude 77.56 E and 79.04 E. It is surrounded by

Uttarkashi, Rudraprayag, Chamoli ,Pauri Garhwal and Dehradun districts on North, North

East, North East, South and West respectively. The entire district is mountainous and altitude

ranges from 300 to 2250 meters. Bhagirathi, Bhilangana and Alakananda are main rivers of

this district and Yamuna forms the Western boundary of the district.

Total geographical area of the district is 4453 sq. Km. and the total population of the

district is 6.05 lakh, of which 94% i.e. 5.45 lakh comes under rural population. Population

density is 137 per square km. The district is comprises of 1776 inhabited villages. 69% of

total area is covered by forest and only 11% is under agriculture. The average per capita

availability of land is .11 ha or 5.5 nalis.

The district has 92 bank branches out of which 49 branches are of commercial banks,

19 branches are of Uttaranchal Gramin bank, 23 banks branches are of Tehri-Garhwal

District Central Cooperative bank and 1 branch is of U.P. Sharkari Gram Vikas Bank.Out of

1776 villages 1494 villages are having electricity and 1272 villages are having pucca roads.

There is no railway present in the district. There are 10 mandis and 78 godowns present in the

district but no coal storage facility is available.

Major crops grown in the districts are wheat, barley, potato, black gram,

lentil,mustard, pea, maize, ginger etc. Due to suitable climate this district has emerged as an

important vegetable growing area of the state. Vegetables grown in this area are potato,

tomato, cucumber, pumpkin, arbi, French bean, pea, onion, cauliflower, reddish etc.

Cultivation of off season vegetables is an important activity amongst the farmers of this

district. There are some pockets in the district like Satyun, Agrakhal, Mussorie Chamba belt,

Bhilangana valley etc. producing off season vegetables in good quantity.

Turmeric, ginger and chillies are few most important spices cultivated in the district.

Ginger is considered as one of the most important commodity of the reason. In Tehri Rio-De-

Jenario variety of ginger is cultivated. The crop is harvested in September-November months.

Nainbagh in Jaunpur block, Chowki Dagar in Kirtinagar block and Agar in Agrakhal block

are some of the major Ginger producing areas of the district. The produce are sold in local

markets and small merchants as well as to the bigger markets of Dehradun, Haridwar and

Delhi.


11/69

11 | P a g e

3. RESEARCH METHODOLOGYTo accomplish the objectives of the study, the following approach was adopted for the study.

1. AREA OF STUDYTehri Garhwal district of Uttarakhand was the area of study. Two clusters in the district were

studied, namely-

1) Agrakhal2) Maletha

These clusters were chosen because most of the populations of these clusters are associated

with agriculture and they are associated with production and marketing of spices and

vegetables commercially.

2. RESEARCH DESIGNExploratory and Descriptive research design were used keeping in view the nature and scope

of the study.

3. DATA SOURCESBoth primary and secondary sources of information were used for the study.

Primary data sources:-This included farmers, traders, and government and corporate officials, NGO and

SHG members, bankers working in the concerned field. From farmers and traders

information regarding cost of marketing and problems faced during production and marketing

was collected. From government and corporate officials, NGOs and SHGs and bankers

information about the existing infrastructural facilities available, credit facilities, ongoing

schemes was collected.

Secondary data sources:-This included district PLPs State Focus Paper, government records, horticultural

database, internet, books, journals, research papers, and student thesis. From secondary

sources information about the work done in the past and the present status was collected and

was used as a base to formulate the present study.


12/69

12 | P a g e

4. RESEARCH INSTRUMENTSWell structured questionnaires with both open and closed ended questions were used

as well as in-depth interviews were conducted.

5. SAMPLING PLAN5.1 Sampling units:-

Three types of sampling units were selected:-

Farmers. Bankers and government officials. Member of SHGs, farmer clubs and NGOs and traders.

5.2 Sampling technique:-

Farmers: sampling technique adopted was mixed of stratified random, judgmental and

snowball technique.

Bankers, member of SHGs, farmer clubs and NGOs: judgemental sampling was

followed with snowball technique.

For selection of farmers, a complete listing of all the villages of the cluster was done.

Sample was taken from all the villages depending on their association with cultivation of

spices and vegetables

6. SAMPLE SIZESample surveyed in the present study consisted of 60 farmers (30 from each cluster) and

no. of officials, NGO and SHG members vary according to the cluster.

7. DATA ANALYSISFirst the data was validated, classified, coded and tabulated. For Data Analysis

different statistical tools were used including percentage analysis, ratio method, means and

averages. Data were presented in the form of table, graphs and charts.

8. DURATION OF THE STUDYThe study was conducted from 8

thJuly 2009 to 31

stof July of 2009. The total duration

of the study was of eight weeks.


13/69

13 | P a g e

9. LIMITATIONS OF THE STUDYThe present study has been carried out systematically using scientific methodology.

Every care was taken to select the representative sample. The accuracy of the data was

ensured through cross-checks. However, few limitations pertinent in every socio-economic

survey may not be overruled though these limitations would hardly limit the relevance and

fidelity of the results derived. Some of the limitations in this study are as under:

1. Due to uneven topography and scattered households in the area studied the study wastime consuming even though sample size is small.

2. Use of Garhwali language by most of the villagers was impediment while conductingsurvey.

3. As the project was under NABARD, villagers expected financial gains/subsidy aswell as other help and often deviated from the concerned subject.

4. In few cases the opinion and views of the respondents were guided by the protocol oftheir respective organizations and their preconceived notions.

5. As no farm records were maintained by the sampled farmers, the data was, therefore,collected by survey method based on their memory power and past experience.

Though, due care was taken by cross checking the information, the possibility of few

slips from the memory of the respondents could not, however, be ruled out.

6. Most of the traders in the study markets did not cooperate to the extent desirable asthey were afraid of divulging their trade secrets.

7. Study is more applicable to the hilly areas of Uttaranchal. However some of thefindings can be generalized for the whole state of Uttarakhand.


14/69

14 | P a g e

4. RESULTS AND DISCUSSIONSThe findings of the study are discussed below with the help of different tables and exhibits

4.1RESPONDENTS PROFILEThe surveyed respondents profiles are discussed below with the help of exhibits and tables.

Educational qualification of respondents in Agrakhal

Educational qualification of respondents in Agrakhal is shown below in Exhibit No 4.1.

Exhibit 4.1 educational qualification of respondents from Agrakhal

In Agrakhal cluster it was found that most of the respondents were either illiterate or

had studied only up to 10th class. Only one of the respondents was graduate. It was found

that educational qualification had no significant relation with production and marketing of

spices and vegetables in the cluster except few of the villagers other than the respondents quit

agriculture after doing higher studies.

ILLITERATE

23%

4TH PASS

7%

6 TH PASS

3%

8 TH PASS27%

10TH PASS

23%

12TH PASS

14%

GRADUATE

3%


15/69

15 | P a g e

Educational qualification of respondents in Maletha

Educational qualification of respondents in Maletha is shown below in Exhibit No 4.2.

Exhibit 4.2 educational qualification of respondents from Maletha

In Maletha cluster it was found that number of illiterates is comparatively less to that

of Agrakhal cluster. Twenty four percent of the respondents had studied up to sixth or eight

classes whereas twenty percent of the respondents studied up to 10th class. Seven of the

respondents were graduates and seventh were studied up to class twelve. It was found that

educational qualification had no significant relationship with production and marketing of

vegetables in the cluster except agriculture did not find favour with graduates. They preferred

to moving out of their villages in search of alternative employment.

Distribution of sample respondents according to land holding

Farmers here have been classified according to their total land holding. In Tablebelow farmers have been categorized according to the size of their land holdings in three

categories small, medium and large. The classification of farmers in Agrakhal is shown in

table 4.1 and the classification of farmers in Malethais shown in table 4.2.

ILLITERATE

10% 6 TH PASS

7%

8 TH PASS

17%

10TH PASS

20%

12TH PASS

23%

GRADUATE

23%


16/69

16 | P a g e

AGRAKHAL

Table 4.1 Distribution of sample respondents according to land holding in Agrakhal

Land holdings (hectare) Number of Farmers: Percentage

Up to 1 21 70

1 to 2 5 16.66

> 2 4 13.33

It is quite evident from table 4.1 that seventy per cent of farmers were having land

holding up to 50 nali i.e. one hectare, followed by sixteen point six per cent in case of land

holding between one to two hectare and thirteen percent of the respondents were having land

holding more than two hectare.

MALETHA

Table 4.2 Distribution of sample respondents according to land holding in Maletha

Land holdings (hectare) Number of Farmers: Percentage

Up to 1 21 70

1 to 2 4 13.33

> 2 5 16.66

It is quite evident from table that seventy per cent of farmers were having land

holding up to 50 nali i.e. one hectare, followed by sixteen point six per cent in case of land

holding more than two hectare and thirteen percent of the respondents were having land

holding between one and two hectare.

Leasing of land

In both the clusters formal leasing was practically absent. In Agrakhal clusters only

one respondent took land in verbal lease. The farmer is a large progressive farmer and having


17/69

17 | P a g e

large number of owned land too. In Maletha cluster five of the respondents took land on

verbal leasing. Out of them four respondents are Nepali farmers from Darjeeling and they do

not have their own land where as the remaining person was a farmer having his own land too.

4.2 AREA PROFILE

General information about the clusters studied and different villages situated in the

studied clusters are discussed below.

Agrakhal cluster-

The Agrakhal cluster is located at Rishikesh Chamba road, 92 km away from

district head quarter Tehri. It is 12 km away from the block office Narendranagar. There are

two local markets viz. Fakot and Agrakhal. Six villages come under this cluster. There are

four gram panchayats viz. Agar, Kasmoli, Bhetan and Bhingarki. The cluster is situated in

Narendranagar block of the Tehri Garhwal district. It falls under watershed Hewal and micro

watershed Bhinukhal. The details of the villages are shown below in table 4.3

Table 4.3general information on Agrakhal cluster

Source- Block Development Office, Narendranagar

Total land of the cluster is 628.48 ha; out of which 29.40% is under forest i.e. 184.77

ha, 4.27% under habitation, 1.17 % slopes, 1.25% is covered by water, 46% i.e. 287.438 ha

land is under agriculture, 11.86 other land and 6.05% is barren land 11.86 other land. Exhibit

4.3 shows the land use pattern in Agrakhal cluster.

VILLAGES P.O. FAMILY POPULATION TOTAL LAND(HA)

AGAR AGARKHAL 127 585 92.646

KASHMOLI AGARKHAL 90 352 72.113

BHINGARKI FAKOT 80 445 34.782

BHETON FAKOT 76 384 73.173

CHILOGI AGARKHAL 47 202 3.768

JANGLETH FAKOT 21 98 10.956


18/69

18 | P a g e

Exhibit 4.3 land use pattern of the cluster

Status of agriculture

Total agricultural land of the cluster is 287.434 ha. The average land holding is .65 ha

per family. About 97 percent of land holding is less than 1 ha. Total irrigated land is about

18.3 ha, which is only 6.3 percent of total agricultural area. Table 4.4 shows different crops

grown in Agrakhal cluster.

Table 4.4 crops and cropping season of Agrakhal cluster

29.40%

4.27%

3%

43%

11.86%

6.05%

1.25%1.17%

LAND USE UNDER

FOREST

HABITATION

IRRIGATED

UNIRRIGATED

OTHER LAND

BARREN

WATER COVERED

AREA

CROP SEASON

GINGER MARCH-NOV

TURMERIC MARCH-MARCH

GARLIC JAN/FEB-MAY/JUNE

PEA SEPT-DEC

RADISH JUNE-AUG

FRENCH BEAN 2-3 TIMES A YEAR

CABBAGE JUNE-AUG/SEPT

CAULIFLOWER JUNE-AUG/SEPT

ONION JAN/FEB-MAY/JUNE

CUCUMBER JULY-AUG/SEPT

PUMPKIN JUNE-AUG


19/69

19 | P a g e

Cropping pattern of the Agrakhal cluster

Table no. 4.5 shows the cropping pattern of followed in Agrakhal cluster.

Table 4.5 showing different crops grown in Agrakhal by different numbers of farmers

CROP NO. OF RESPONDENTS GROWING THE CROP

GINGER 30

TURMERIC 16

GARLIC 19

PEA 6

RADISH 8

FRENCH BEAN 8

CABBAGE 15

CAULIFLOWER 5

ONION 14

CUCUMBER 13

PUMPKIN 9

TOMATO 13

BRINJAL 7

POTATO 10

CHILLI 9

COLOCASIA 14

BOTTLE GOURD 2

From the table it can be observed that ginger is a crop which was grown in the cluster

by almost all the farmers. Other crops grown mostly in the cluster were turmeric, garlic,

TOMATO FEB/MARCH-JULY/AUG

BRINJAL 2-3 TIMES A YEAR

POTATO 2-3 TIMES A YEAR

CHILLI JULY/AUG-NOV/DECCOLOCASIA MARCH/APRIL-OCT/NOV

BOTTLE GOURD JUNE-AUG


20/69

20 | P a g e

cabbage, onion, colocasia or arbi etc. The preference for ginger and turmeric by most of the

farmers was on accounts of less water intake by the crops and low availability of water in the

region.

Climatic conditions in Agrakhal cluster

The altitude of the villages varies from 1340 metre to 1800 metre. The Agrakhal

market is situated in a height of 1550 metre. The uneven topography of the cluster results in

an unavoidable problem in spices and vegetable supply chain in terms of procurement,

marketing and infrastructure development due to transportation problems.

The temperature during summer varies from 22 degree Celsius to 35 degree Celsius

and in winter it varies from 0 to 20 degree Celsius, which accounts for suitable climate for

growing spices and vegetables in this area. The average annual rainfall is around 1600 mm.

80 percent of which falls in the monsoon season between June to September and 20 percent

in winter season between Decembers to February. Most of the farmers are dependent on

rainfall for cultivation and little change in rainfall pattern leads to huge reduction in

production of vegetables.

Frost is a common problem in the cluster commonly occurs between Decembers to

February.the region also hit by pre monsoon storms between April to June. The placeexperiences at an average 200 sunny days annually. Direct sunlight on the agricultural fields

also results in a bigger problem to the farmers.

Sleet and snow fall is another problem mainly affecting the production of spices and

vegetables in Kasmoli village of the cluster located in the higher ranges.

Soil and topography of the cluster

As mentioned earlier the cluster is topographically heterogeneous. This ranges from

1340 to 1800 metre from the sea level. It results in difficulty in transportation of produce. The

district horticulture department established one rope way to transport the spices and

vegetables from Kasmoli to the main road but that is not sufficient. There are villages like

Chillogi, Bhingarki etc. which are at a very lower hight compared to the main road and the

Agrakhal mandi. Even all the farmers from Kasmoli mainly small and marginal farmers do

not want to use the ropeway because of its location which is far away from the Agrakhal

mandi. The use of the trolley results in extra distance or extra transportation cost.

The soil types found here are mainly laterite, alluvial and colluvial. About 80 percent

of the soil is laterite soil. The soils are clay soil, loamy soil or mixture of both the types. The


21/69

21 | P a g e

soils are having good capacity to retain water. The top soil depth ranges from 7.5 cm to 30

cm in the cluster. Towards valleys the top soil depth increases. Some of the specific

characteristics of the soil found in the Agrakhal cluster are

Most of the soil found here is acidic. The humus availability in the soils is low. The soil is deficient of organic carbon. It is also deficient in nitrogen and potash. The soil is under acute infection from fungus The soil is also infected by presence of different soil pests and insects.

Status of irrigation in Agrakhal cluster

The main water source of the cluster is rainfall. Other sources of water are spring,

streams, naulas, rain water harvesting tanks etc. but most of them are dry and only few are

perennial. Scarcity of water is the main problem in the cluster not only for agricultural

purposes but also for domestic purposes. Four of the villages out of the 6 villages in the

cluster do not have regular drinking water facility.

Only 7.4 percent of the total agricultural land is under irrigation. The irrigated lands

are mainly located in the lower villages. The main channel of irrigation is canals, but most of

them are not functioning. Land sliding is a natural calamity responsible for the same.

Although few of the progressive farmers constructed some rain water harvesting tanks

for agricultural practices and even adopted practices like drip irrigation but most of them are

not capable of construction of costly tanks and besides farmers use the stored water for

domestic purposes also. The current status of irrigation in the different villages of the clusters

is shown below in table no 4.6.


22/69

22 | P a g e

Table 4.6 information of irrigated land in Agrakhal

VILLAGES IRRIGATED(HA)

DRY

LAND(HA)

TOTAL

LAND(HA)

AGAR 4.258 88.388 92.646

KASHMOLI 3 69.113 72.113

BHINGARKI 3.358 31.424 34.782

BHETON 4.785 68.388 73.173

CHILOGI 2.966 0.802 3.768

JANGLETH 2.966 7.99 10.956

TOTAL 21.333 266.105 287.438

Source- Block Development Office, Narendranagar

Existing technologies and practices in Agrakhal

In this cluster traditional practices of production were practiced. Bullocks were used

for field preparation. Use of tractor or power tiller was not possible in the fields because of

slopes and hilly topography. In the cluster terrace farming was adopted and contours were

made for growing crops. Intercropping between ginger and turmeric and cucumber and maize

were common. The farmer used bigger size of propagation material for production of ginger,

according to them this practice helps to get more germination and more productivity

Other technologies present and used by the farmers included rope way for

transportation along with a Transition house provided by horticulture department, net house

to protect crop against sleet, Compost tanks, wooden and stone fencing etc.

The ropeway connected Kasmoli village to the main road. There was two baskets tied

with the rope in which produces are transferred. No fuel or power source is needed for

running the trolley. It runs mechanically.

Chakbandi was not practiced in the cluster because of hilly topography as well as

unequal water availability.

Maletha cluster-

The Maletha cluster is located at Devprayag Srinagar road, 52 km away from district

head quarter Tehri and 140 km away from the state capital Dehradun. It is 4 km away from

the block office Kirtinagar. There are two local markets viz. Kirtinagar and Srinagar. Six

villages comes under this cluster. They all comes under nyai panchayat Maletha. The cluster

is situated in Tehri Garhwal district in the state of Uttarakhand. It comes under the Tehsil

Devprayag. The details of the villages are given below in table 4.7.


23/69

23 | P a g e

Table 4.7general information on Maletha cluster

VILLAGES NO. OF G.P. POPULATION

TOTAL AGRI

LAND (HA)

TOTAL

LAND(HA)

MALETHA MALETHA

1191(260

FAMILY) 124.514 312.4

MUNDOLI MUNDOLI 752 (160) 90.21 208.048

RAMPUR RAMPUR 284 (61) 13.682 42.807

JHAKHONI

GHIDIYAL GHILDIYAL 899 (203) 39.916 101.531

JIYALGARH JIYALGARH 272 (64) 14.344 46.8

SEMA GHILDIYAL 69 12.18 45.63

Total land of Maletha cluster is 757.216 ha, out of which 294.846 ha is under

agriculture. The average land holding per family is .385 ha. Total land of Jiyalgarh and

Maletha is 359.2 ha, out of which land under agriculture is 138.84 ha, and wasteland is

169.87 ha, under forest 50.49 ha. The land use pattern of the cluster is shown in exhibit 4.4.

Exhibit 4.4 land use pattern in jiyalgarh and Maletha

Climatic conditions in Maletha cluster

The altitude of the villages varies from 515 metre to 650 metre. The cluster can be

considered as having a plain topography.

14.04%

38.65%

47%

LAND USE PATTERN LAND

USE UNDER FOREST

LAND USE PATTERN

UNDER AGRICULTURE

LAND USE PATTERN

WASTELAND


24/69

24 | P a g e

The temperature during summer varies from 25 degree Celsius to 43 degree Celsius

and in winter it varies from 10 to 30 degree Celsius, which accounts for suitable climate for

growing spices and vegetables in this area mainly in winter. The average annual rainfall is

around 1200 to 1500 mm, most of which falls in the monsoon season between May to

October. The rainfall is low as compared to other places of the state. Most of the farmers are

dependent on rainfall for cultivation and little change in rainfall pattern leads to huge

reduction in production of vegetables despite of having different sources of irrigation.

Sleet is another problem mainly affecting the production of spices and vegetables in

different villages of the cluster.

Soil and topography of the cluster

As mentioned earlier the cluster is topographically homogeneous except the village

Mundoli located at a higher altitude. This ranges from 515 to 650 metre from the sea level. It

results in easy transportation of produce. Only absence of mandi in nearby area results in

higher transportation cost.

The soil types found here is mainly loamy sand soil. The water retention capacity is

medium. Some of the specific characteristics of the soil found in the Maletha cluster are

The soil fertility is heterogeneous. The soil is also infected by presence of different soil pests and insects.

Status of agriculture

Total land of Maletha cluster is 757.216 ha, out of which 294.846 ha is under

agriculture. The average land holding is .385 ha per family. About 90 percent of land holding

is less than 1 ha. Total irrigated land is about 48.635, which is only 16.49 percent of total

agricultural area. Table 4.8 shows different crops and their seasons grown in Maletha cluster.


25/69

25 | P a g e

Table 4.8 crops and cropping season of Maletha cluster

CROP SEASON

CARROT OCT - NOV/DEC

OKRA MARCH-APRIL

CORIANDER OCTNOV

RAI JAN- FEB/MARCH

PALAK JAN/FEB-MARCH/APRIL

GARLIC JAN/FEB-MAY/JUNE

PEA SEPT-DEC

RADISH JUNE-AUG

FRENCH BEAN 2-3 TIMES A YEAR

CABBAGE JUNE-AUG/SEPT

CAULIFLOWER JUNE-AUG/SEPT

ONION JAN/FEB-MAY/JUNE

CUCUMBER JULY-AUG/SEPT

PUMPKIN JUNE-AUG

TOMATO FEB/MARCH-JULY/AUG

BRINJAL 2-3 TIMES A YEAR

POTATO 2-3 TIMES A YEAR

CHILLI JULY/AUG-NOV/DEC

Cropping pattern of the Maletha cluster

In Maletha cluster it was observed that onion, tomato, rai, spinach, okra, brinjal were

some of the vegetables mostly grown in Maletha cluster. The soil of the cluster was very

much suitable for these crops and there was good irrigation system present. Although in 2009

due to late monsoon there were scarcity of water in the cluster, but it was temporary. The

existing cropping pattern of Maletha cluster is shown in table 4.9.


26/69

26 | P a g e

Table 4.9 different crops grown in Maletha by different numbers of farmers

CROP NO. OF FARMER GROWING THE CROP

CARROT 8

OKRA 21

CORIANDER 12

RAI 21

SPINACH 20

GARLIC 4

PEA 12

RADISH 14

FRENCH BEAN 20

CABBAGE 18

CAULIFLOWER 19

ONION 20

CUCUMBER 5

PUMPKIN 4

TOMATO 20

BRINJAL 14

POTATO 4

CHILLI 9

COLOCASIA 5

CAPSICUM 3

Status of irrigation in the Maletha cluster

The main source of irrigation in the cluster is the water channel collected water from

higher areas i.e. water cannel from Dangchoura. Other source of water is mainly rainfall.

Rain water harvesting tanks are rare. The fields are connected with concrete water channels

but during this season (May-June) most of them are dry and only little amount of water is

present in the main channel. Scarcity of water is the main problem in the cluster not only for

vegetable cultivation but for other agricultural purposes. The main source of drinking water is

tube well.


27/69

27 | P a g e

Only 16.4 percent of the total agricultural land is under irrigation. The irrigated lands

are mainly located in the lower villages. The main channel of irrigation is canals, but most of

them are dry due to absence of rainfall in last few months.

Although few of the progressive farmers constructed some rain water harvesting tanks

for agricultural practices and even adopted practices like drip irrigation but most of the

farmers are not capable of constructing costly tanks and those whoever constructed such

tanks uses them for other grain crops like rice, mandua etc.

The general status of irrigation in the different villages of the clusters is presented below in

table 4.10.

Table 4.10 information of irrigated land in Maletha

Existing technologies and practices in Maletha

In this cluster also traditional techniques were used for production, transportation,

storage etc which are having very less significance. Bullocks were used for field preparation.

Use of tractor or power tiller was not possible in the fields because of slopes and hilly

topography. Use of power tiller was tried by some farmers but it was not successful. In this

cluster also terrace farming was adopted and contours were made for growing crops.

Other technology includes Wooden fencing, boundary of field made of stone,

parkunda, a practice of storing grasses and fodders by tying them on tree, Production of

organic manures by storing cow dung mixed with leafs and straw near roadside or field side,

wooden sticks are used for support in tomato etc.

VILLAGES IRRIGATED(HA)

DRY

LAND(HA)

TOTAL AGRI

LAND (HA)

MALETHA 29.317 99.197 124.514

MUNDOLI 3.896 86.314 90.21

RAMPUR 6.29 7.392 13.682

JHAKHONI

GHIDIYAL 0.556 39.36 39.916

JIYALGARH 7.473 6.871 14.344

SEMA 1.103 11.077 12.18

Total 48.635 250.211 294.846


28/69

28 | P a g e

Some of the unique practices followed in this cluster like appointment of a Person as a

guard or in local term bandrol against wild animals, appointment of a person for distribution

of irrigation water locally known as kulha, creation of mindal surrounding every contour

which is a small strip of land used to grow seedlings.

Chakbandi was not practiced in the cluster because of unequal soil fertility as well as

unequal water availability.


29/69

29 | P a g e

4.3 INPUT SUPPLY FOR SPICES AND VEGETABLE PRODUCTION

The availability of different inputs for vegetable production plays an important role in

the vegetable supply chain in Uttarakhand. The existing situations studied in the clusters are

discussed below.

Seeds

Seeds supply and availability in Agrakhal is shown in table 4.11 along with sources and

prices.

Table 4.11information on seed suply in Agrakhal

CROP SEED

REQUIREM

ENT

SEED PRICE SEEDS SOURCE

GINGER LOCAL

TURMERIC LOCAL

GARLIC LOCAL/HORTICULTURE

PEA 50 KG/ Ha 160RS/KG NGO/DEHRADUN, VAR- ARKIL

RADISH DEHRADUN/CHAMBA

FRENCH

BEAN 70-80 KG/Ha DEHRADUN/CHAMBA

CABBAGE 500 GM /Ha 180 Rs/10 Gm HORTICULTURE/DEHRADUN

CAULIFLOWE

R 500 GM /Ha 60 RS/50 Gm DEHRADUN/CHAMBA

ONION 12.5KG/ Ha 400 Rs/Kg CHAMBA/HORTICULTURE

CUCUMBER

160 Rs/10 Gm

of seed HORTICULTURE

PUMPKIN 1 RS/SEED

HORTICULTURE/DEHRADUN,VA

R- MERO56

TOMATO 500 GM /Ha 225Rs/10gram HYBRID/CHAMBA

BRINJAL 150GM/Ha 150/50 Gm HYBRID/CHAMBA

POTATO 5000KG/Ha 15-20/KG HORTICULTURE, LOCAL

CHILLI HORTICULTURE

COLOCASIA LOCAL

BOTTLE

GOURD HORTICULTURE/DEHRADUN


30/69

30 | P a g e

Seeds are procured mainly from branch of horticulture department, Fakot. Seeds are

also given for demonstration by the department to the progressive farmers of the cluster.

There is no subsidy in seeds.

However some of the farmers purchases high quality hybrid seeds from Dehradun and

Chamba markets. Seeds are available at right time and there is no problem in supply of seeds.

In case of crops like Ginger and turmeric farmers use only local seeds i.e. seeds produced in

the last season.

Most of the farmers are unaware of the varieties name and importance but they are

cultivating whatever is available from horticulture department branch.

Seeds supply and availability in Maletha is shown in table 4.11 along with sources

and prices.

Table 4.12information on seed suply in Maletha

CROP

SEED

REQUIREMENT SEED PRICE SEEDS SOURCE

CARROTHORT. MOBILE

TEAM

OKRAHORT. MOBILE

TEAM

CORIANDERHORT. MOBILE

TEAM, SRINAGAR

RAIHORT. MOBILE

TEAM, SRINAGAR

PALAKHORT. MOBILE

TEAM, SRINAGAR

GARLIC SRINAGAR

PEA 50 KG/ Ha 160RS/KGHORT. MOBILE

TEAM, SRINAGAR

RADISHHORT. MOBILE

TEAM

FRENCH BEAN 70-80 KG/HaHORT. MOBILE

TEAM, SRINAGAR


31/69

31 | P a g e

CABBAGE 500 GM /Ha 180 Rs/10 GmHORT. MOBILE

TEAM, SRINAGAR

CAULIFLOWER 500 GM /Ha 60 RS/50 GmHORT. MOBILE

TEAM, SRINAGARONION 12.5KG/ Ha 400 Rs/Kg SRINAGAR

CUCUMBER160 Rs/10 Gm of

seed

HORT. MOBILE

TEAM

PUMPKIN 1 RS/SEEDHORT. MOBILE

TEAM

TOMATO 500 GM /Ha 225Rs/10gram

SRINAGAR,

CHAMBA,SHIMLA,

DEHRADUN

BRINJAL 150GM/Ha 150/50 Gm

SRINAGAR,

CHAMBA,

SHIMLA,

DEHRADUN

POTATO 5000KG/Ha 15-20/KGHORT. MOBILE

TEAM, SRINAGAR

CHILLISRINAGAR,

CHAMBA, SHIMLA

COLOCASIALOCAL, HORT.

MOBILE TEAM

CAPSICUMHORT. MOBILE

TEAM, SRINAGAR

Seeds are procured mainly from branch of horticulture department As well as Srinagar

market. Almost all the farmers in Jiyalgarh purchases high quality hybrid seeds from Srinagar

market in black. According to them seeds from markets are more reliable and also available

at time. According to the farmers of the cluster they are not getting required seed at right time

at right price. The seeds from horticulture department are also not very much reliable. Few

progressive farmers also buy seeds from Dehradun, Camba and Himachal Pradesh.


32/69

32 | P a g e

Fertilizers

Fertilizer consumption, supply and availability in Agrakhal and Maletha cluster was studied

and the findings are presented below.

Exhibit 4.5Fertilizer consumption in Agrakhal

Exhibit 4.5 shows that organic manures and cow dung are mostly used in the cluster.

Only about 20% of the farmers used urea, DAP and Potash. Organic manures are produced in

the households itself and cow dung is the major nutrient source.

According to farmers of the cluster organic manure and cow dung are very effective

and also it saves lots of expenditure. Those farmers uses urea, potash and DAP purchase them

from cooperative mini bank.

Organic manure80%

Urea ,DAP

10%

Urea ,DAP,

Potash

10%


33/69

33 | P a g e

Fertilizer consumption, supply and availability in Maletha

Exhibit 4.6 Fertilizer consumption in Maletha

Exhibit 4.6 shows that organic manures and cow dung are mostly used in this cluster

too. Only about 30%-40% of the farmers used urea, DAP and Potash. Organic manures are

produced in the households itself and cow dung is the major nutrient source. Cow dung

mixed with straw and leaves are kept near road sides which are used afterwards in the field.

According to farmers of the cluster organic manure and cow dung are very effective

and also it saves lots of money. Those farmers uses urea, potash and DAP purchase them

from cooperative mini bank and Srinagar market.

60%

3%

20%

17%

Organic manure UREA Urea ,DAP Urea ,DAP, Potash


34/69

34 | P a g e

Plant protection materials

Present status of plant protection materials supply and availability in Agrakhal cluster is

discussed below.

Plant protection materials, including mainly plant protection chemicals are used by

53% of the farmers. The materials are available from the horticulture mobile team, Fakot.

There was 50% subsidy in all plant protection materials provided by the department of

horticulture. Few of the farmers buy it from Dehradun market. But there is a major problem

regarding use of Different plant protection materials due to lack of know how. Sometimes

misguidance leads to wrong application of plant protection chemicals and it results in

damaging crops or complete crop failure. In table 4.13 different chemicals used in the cluster

is shown.

Table 4.13 Plant protection materials supply and availability in Agrakhal

Exhibit 4.7 showing percentage of farmers using plant protection material

53%

47%

NO. OF FARMER USING P.P. MATERIAL

NO. OF FARMER NOT USING P.P. MATERIAL

P.P. MATERIAL NO. OF FARMERS SOURCE

INDOFIL Z-78 4 HORTMOBILE TEAM.

DIETHANIUM-14 7 HORTMOBILE TEAM.

BAVISTIN 12 HORTMOBILE TEAM.

INDOFIL M-45 3 HORTMOBILE TEAM, DEHRADUN.

TATA TRACEL 1 DEHRADUN

NET 1 HORTMOBILE TEAM.


35/69

35 | P a g e

Plant protection materials supply and availability in Maletha cluster is discussed below.

Plant protection materials, including mainly plant protection chemicals are used by only 37%

of the farmers. The materials are available from the horticulture mobile team, Kirtinagar.

There was 50% subsidy in all plant protection materials provided by the department of

horticulture. Few of the farmers purchase it from Chamba and Dehradun markets. But there is

a major problem regarding utilisation of different plant protection materials due to lack of

know how in farmers about how to apply, how much to apply, when to apply etc. Sometimes

misguidance leads to wrong application of plant protection chemicals and it results in

damaging crops or complete crop failure. Few of the farmers taking land in verbal leasing are

also facing problem because they are not getting plant protection materials from horticulture

mobile unit. In exhibit 4.8 percentages of farmers utilising plant protection materials are

shown and in table 4.13 different chemicals used in the cluster is shown.

Exhibit 4.8 showing percentage of farmers using plant protection material

Table 4.14 Plant protection materials supply and availability in Maletha

37%

63%

NO. OF FARMER USING P.P. MATERIAL

NO. OF FARMER NOT USING P.P. MATERIAL

P.P. MATERIAL

NO. OF

FARMERS SOURCE

INDOFIL Z-78 5 HORTMOBILE TEAM, CHAMBA

DIETHANIUM-

14 4 HORTMOBILE TEAM.

BAVISTIN 8

HORTMOBILE TEAM, CHAMBA,

DEHRADUN


36/69

36 | P a g e

Labour

In Agrakhal cluster most of the farmers employed only family labour for spices and

vegetable production and marketing. About seventy five to eighty percent of the farmers

employ only family labour where as ten to thirteen percent of the farmers used to work

collectively in the field along with the family labour. Only about ten percent of the farmers

went for hired labour. Exhibit 4.9 shows percentages of different labour in Maletha cluster

Per day charge or wage charged by hired labour in Agrakhal was Rs.70. Most of

the hired labours are from local villages. Others are Nepali people resides in that cluster,

however there was no problem in availability of labours round the year in the cluster.

Exhibit 4.9 showing percentage of different types of labour utilisation

.

In Maletha cluster the farmers employed different types of labours for spices and

vegetable production and marketing. Only about twenty percent of the farmers employed

ONLY FAMILY

LABOUR77%

LOCAL LABOR,

HIRED LABOUR

10%

COLLECTIVE

LABOUR

13%

INDOFIL M-45 5

HORTMOBILE TEAM, DEHRADUN,

CHAMBA

TATA TRACEL 4 DEHRADUN, CHAMBA

CARBONDAZIM 1 CHAMBA

BENGARD 2 CHAMBA, DEHRADUN

CHLOR GUARD 2 CHAMBA, DEHRADUN


37/69

37 | P a g e

only family labour where as thirty percent of the farmers used to work collectively with other

families in the field which is locally termed as Padiyal. About twenty five percent of the

farmers went for hired labour from local villages and about twenty five percent of the farmers

hired Nepali labours resides in that cluster. Exhibit 4.10 shows percentages of different

labour in Maletha cluster.

Per day charge or wage charged by hired labour in Agrakhal was Rs.60 to Rs.70.

farmers of the cluster mentioned that there is no problem in getting hardworking and skilful

labours.

Exhibit 4.10 showing percentage of different types of labour utilisation

ONLY FAMILY

LABOR

21%

LOCAL LABOUR

26%NEPALI LABOUR

24%

ONLY FAMILY

AND PADIYAL

29%


38/69

38 | P a g e

4.4 PRESENT STATUS OF CREDIT DISBURSEMENT IN STUDY AREAS

Credit availability is one of the important issues for spices and vegetable growers. The

main source of institutional credit available in the study areas were SBI and Cooperative Mini

Bank branches. There were no microfinance institutions in those areas other than the bank

branches.

State Bank of India

The rate of interest for agricultural loan in SBI is seven percent. The documentations needed

for getting loans are:

i. No due certificate from BDO, chairman of cooperative society, the grampradhan and the patwari.

ii. A copy of kisaan bahi issued from the tehsil consists of informationregarding land holding of the applicant in different places of the cluster.

Ownership of land of the farmer is taken in to account in order to disburse

the credit.

Loans are also provided to SHGs along with the subsidies provided by the block office

through block office. The ownership of land for each member of the SHG is checked in order

to issue the credit.

Cooperative Mini Bank, Fakot

The bank provides general banking facilities as well as crop loan and inputs like

fertilizer, pesticides, seeds etc. to the member farmers. Members should have land in the

mentioned areas and should be above 18 years age. The source of fund for the institute is

DCB/ NABARD. Documentation needed to get a loan from this bank includes-

i. A pro note to the bankii. Guarantoriii. Should have share of the bank. Loan amount issued use to be nearly 20

times of the share value.

iv. A copy of kisaan bohi issued from the tehsil consists of informationregarding land holding of the applicant in different places of the cluster.

Ownership of land of the farmer is taken in to account in order to disburse

the credit.


39/69

39 | P a g e

The limit to the amount of credit for crop loan is decided by the office of district

agriculture officer or district horticulture officer for particular amount of land and crop as per

the scale of finance for the crop, which the farmer intends to grow. The loan is given in the

form of cash and kind as some of the inputs are provided in place of cash by the bank and

sometimes seeds are provided by district horticulture office and the bank pay them the

money.

The interest rate is 10%. Out of that three percent is pay backed by NABARD and

two percent is pay backed by Uttarakhand government as subsidies. Only five percent of the

interest is to be backed by the farmer.

Agrakhal

In Agrakhal almost all the people are aware about credit facilities available. But many of

them were having different types of misconceptions regarding interest rates, formalities,

documentations etc. There were two bank branches, State Bank of India, Fakot and

Cooperative Mini Bank, Fakot which are the main source of institutional credit source in the

area. Only about thirty percent of the farmers were taken credit from these institutes. Nearly

ten percent of the farmers took credit from SBI branch. The main reasons due to which

farmers are not availing credits are mentioned below-

1. High rate of interest.2. Too much of formalities and documentation to be done to get those facilities.3. High amount of cost of credit. It is due to the commission to be paid to the bankers

which is about fifteen to twenty percent of the credit amount.

4. Misbehaviour of bankers, especially in SBI, Fakot.5. Risks of crop failure due water scarcity, wild animal attack, frost, sleet, pest and

diseases etc.

6. Risk of transportation, storage, price fluctuation etc.Maletha

In Maletha about fifty percent of the people are aware about credit facilities available.

Others were unaware of the formalities as well as facilities provided. Many farmers were

having different types of misconceptions regarding interest rates, formalities, documentations

etc. There were three bank branches, State Bank of India, Kirtinagar, Cooperative Mini Bank,Kirtinagar and Tehri Garhwal Sharkari Bank, Kirtinagar which are the main source of

institutional credit source in the area. Only about twenty percent of the farmers were taken


40/69

40 | P a g e

credit from these institutes. The main reasons due to which farmers are not taking credits are

mentioned below-

1. Unawareness about credit facilities.2. High rate of interest.3. Too much of formalities and documentation to be done to get those facilities.4. High amount of cost of credit. It is due to the commission to be paid to the

bankers which is about fifteen to twenty percent of the credit amount.

5. Misbehaviour of bankers.6. Risks of crop failure due water scarcity, wild animal attack, frost, sleet, pest and

diseases etc.

7. Risk of transportation, storage, price fluctuation etc.


41/69

41 | P a g e

4.5 ONGOING PROJECTS IN THE STUDIED AREAS

Ongoing government schemes in Agrakhal are:

Integrated Watershed Development Project, Bhinukhal micro watershedThis

is a project going on in Agrakhal under NABARD. The associated NGO working in this area

is Society for Rural Technology. Different works under this project have been done which

includes construction of check dams, construction of percolation tanks, construction of stone

wall etc for soil conservation. Forestation, fodder plantations were also done under the

project for soil conservation. The NGO also distributed different tree seedlings to the farmers

and also intervened new crop i.e. pea, variety- arkil in the area under the project. The project

in turn helped the spices and vegetable farmers of the cluster by providing improved

infrastructure as well as input like pea seeds and information.

National Rural Employment Guarantee Scheme- this is a scheme under Indian

government in which rural people are given minimum employment of 100 days. In Agrakhal

under this schemes construction of stone walls and percolation tanks are going on. Because of

this project there was reduction in disguised labour in the cluster.

Swajjal- It is a scheme under collaboration Indian government and World Bank

which is for providing drinking water facility to the villagers. Under this scheme hand pumps

were installed in agrakhal. The project added to the infrastructure of the cluster and also

indirectly provided better living conditions to the farmers.

Ongoing government schemes in Maletha are:

Rural Technology Training and Demonstration Centre- it is a centre for

demonstration of new technologies, practices etc to the villagers and farmers under G.B. Pant

Institute of Himalayan Environment and Development. Where poly houses, WHTs were

constructed and demonstrated as well as procedure of different agricultural practices wasshown to the farmers of the cluster. It helped in the information and knowledge transfer. But

the centre is not functioning well because of lack of maintenance in that area.

National Rural Employment Guarantee Scheme- this is a scheme under Indian

government in which rural people are given minimum employment of 100 days. In Maletha

under this schemes construction of stone walls, rain water harvesting tanks were done as well

as forestation was done. Because of this project there was reduction in disguised labour in the

cluster.


42/69

42 | P a g e

Collection and distribution centre- it was established for agricultural produce in

Maletha, but it is not functioning till now.

IFFCO selected some villages of the cluster and did 3 years demonstration programs

related to cultivation of different agricultural crops including vegetable crops. The institute

also provided improved inputs to the farmers of the cluster.


43/69

43 | P a g e

4.6 STATUS OF POST HARVEST MANAGEMENT

Picking and assembling

Picking or harvesting is the process of removing the vegetable from the main plant or

from soil. In both the clusters it was done manually.

Assembling of the product at one place is one of the important post harvest practice

performed by the spices and vegetable growers in the study area. The mode of assembling in

both the cluster was manual and place of assembling was the field itself or the home places of

farmers.

Cleaning

Assembling was followed by the cleaning operation. Generally, producers performed

cleaning operation only in ginger and turmeric in Agrakhal. The products are washed and

then dried under the sun. It was done in the field itself or in the households. In Maletha

tomato and capsicum were cleaned in the field itself by the farmers. They wash the produce

in the water channels present in the field for irrigation. In both the clusters farmers used to

remove the outer leaves to make these vegetables attractive and to give fresh look.

Grading and sorting

Grading is one of the most important post harvest practice from the market point of

view as it helps to fetch higher prices of produce. However, grading operation, as such, was

not common in almost all vegetable commodities in the study area except for few farmers.

Instead of grading sorting is carried out by the producer. Sorting is done mostly in the field

itself or in the households. Table 4.10 displays major characters considered for

grading/sorting of spices and vegetables.

Table 4.15 sorting of spices and vegetables in the studied clusters

CROP MEANS OF SORTING CHARACTER CONSIDERED

Carrot Manual Insect and pest infection

Okra Manual Insect and pest infection

Coriander Manual Colour, dryness

Rai Manual Colour, dryness


44/69

44 | P a g e

Palak Manual Colour, dryness

Garlic Manual Insect and pest infection

Pea Manual Insect and pest infection

Radish Manual Insect and pest infection

French bean Manual Insect and pest infection

Cabbage Manual

Compactness of head, insect/disease

infection

Cauliflower Manual

Curd color, compactness, mould

growth, insect /disease infection

Onion Manual Insect and pest infection

Cucumber Manual Insect and pest infection

Pumpkin Manual Insect and pest infection

Tomato Manual Insect and pest infection, colour

Brinjal Manual Insect and pest infection

Potato Manual Insect and pest infection

Chilli Not done

Colocasia Manual Insect and pest infection

Capsicum Manual Insect and pest infection, colour

Ginger Manual Fungal growth

Turmeric Manual Insect and pest infection

Bottle gourd Manual Insect and pest infection

Packaging

Packaging is one of the important and necessary functions performed in the marketing

process. This is done just after sorting. Packaging was done manually for all spices and

vegetables. Generally plastic crates and gunny bags were used as packaging material for most

of the spices and vegetables. Plastic crates were reusable and durability of these was 2-3

years. The cost of plastic crates varied from Rs.130 to Rs.150 per unit. The cost of gunny bag

varied according to their capacity and average costs came out to be Rs.7 to 10 per KG. Table

4.11 shows the packaging material used for different vegetables of both the clusters along

with their capacity, cost, and extent of reuse.


45/69

45 | P a g e

Table 4.16 packaging of spices and vegetables in the studied clusters

CROP MATERIAL COST EXTENT OF USE

CARROT

GUNNY BAG,

PLASTIC CRATE

Rs.7-10/ KG.

130-150/ UNIT

ONE TIME

2-3 TEAR

OKRA GUNNY BAG Rs.7-10/ KG. ONE TIME

CORIANDER GUNNY BAG Rs.7-10/ KG. ONE TIME

RAI GUNNY BAG Rs.7-10/ KG. ONE TIME

PALAK GUNNY BAG Rs.7-10/ KG. ONE TIME

GARLIC GUNNY BAG Rs.7-10/ KG. ONE TIME

PEA GUNNY BAG Rs.7-10/ KG. ONE TIME

RADISH

GUNNY BAG,

PLASTIC CRATE

Rs.7-10/ KG.

130-150/ UNIT

ONE TIME

2-3 TEAR

FRENCH BEAN GUNNY BAG Rs.7-10/ KG. ONE TIME

CABBAGE GUNNY BAG Rs.7-10/ KG. ONE TIME

CAULIFLOWER

GUNNY BAG,

PLASTIC CRATE

Rs.7-10/ KG.

130-150/ UNIT

ONE TIME

2-3 TEAR

ONION GUNNY BAG Rs.7-10/ KG. ONE TIME

CUCUMBER GUNNY BAG Rs.7-10/ KG. ONE TIME

PUMPKIN GUNNY BAG Rs.7-10/ KG. ONE TIME

TOMATO PLASTIC CRATE 130-150/ UNIT 2-3 TEAR

BRINJAL PLASTIC CRATE 130-150/ UNIT 2-3 TEAR

POTATO GUNNY BAG Rs.7-10/ KG. ONE TIME

CHILLI PLASTIC CRATE, 130-150/ UNIT 2-3 TEAR


46/69

46 | P a g e

GUNNY BAG Rs.7-10/ KG. ONE TIME

COLOCASIA GUNNY BAG Rs.7-10/ KG. ONE TIME

CAPSICUM PLASTIC CRATE 130-150/ UNIT 2-3 TEAR

BOTTLE GUARD GUNNY BAG Rs.7-10/ KG. ONE TIME

GINGER GUNNY BAG Rs.7-10/ KG. ONE TIME

TURMERIC GUNNY BAG Rs.7-10/ KG. ONE TIME

Transportation

Quick and efficient transportation is the main step towards good marketing systems.

Vegetables being highly perishable in nature require quick disposal to avoid spoilage and loss

in quality which need efficient network of transportation. Generally, all producers transported

their produce from field to home place manually. However, they used different means of

transportation to carry their produce up to the market for sale. The producers who sold their

produce directly to the retailers shop carried their produce on head loads adopted mostly by

small farmers. Generally, producers selling their produce directly to the consumers by door to

door sale method used this mode of transportation. The means of transportation adopted by

producers for marketing in study area have been discussed below.

Transportation in Agrakhal

In this cluster due to uneven topographic condition transportation is a major problem.

Most of the farmers have to carry the produce manually or with the help of mule. Horticulture

department provided one rope way system from Kasmoli to the main road but most of the

farmers do not use it because the end point of the ropeway is far from Agrakhal mandi as well

as local markets and if they will use the system also they have to carry the produce manually

to the markets. Only those farmers who produce large amount of spices and vegetables can

hire a truck or jeep from the end point of the ropeway.


47/69

47 | P a g e

Table 4.17 Means of transportation for different vegetable commodities in Agrakhal

Exhibit 4.11 mode of transportation in Agrakhal

0

5

10

15

20

25

30

35

Manual mule Jeep bus Truck

MODE OF TRANSPORTATION

No. of farmers

Mode of transportation No. of farmers destination

Manual 30 Main road, Agrakhalmandi, local

market

Mule 19 Main road, Agrakhalmandi, local

market

Jeep 9 Agrakhalmandi, local market,

Rishikesh, Haridwar, Dehradun

Bus 9 Agrakhalmandi, local market,


Truck 7 Rishikesh, Haridwar, Dehradun


48/69

48 | P a g e

Transportation in Maletha

In this cluster transportation is not a problem. Jeeps, buses and trucks are easily

available to carry the produce. To carry vegetables in a large quantity to Rishikesh mandi

trucks charges Rs. 10- 15 per unit of crate or gunny bag. To cell to the local markets and

village retailers farmers uses mostly jeeps and trackers as well as line buses. Producers

selling their produce directly to the consumers by door to door sale method use bicycles.

Table 4.18 Means of transportation for different vegetable commodities in Maletha

Exhibit 4.12 mode of transportation in Maletha

0

5

10

15

20

25

30

35

Manual bicycle Jeep/

trackers

bus Truck

MODE OF TRANSPORTATION

No. of farmers

Mode of transportation No. of farmers destination

Manual 30 Main road, home

Bicycle 14 Local markets, home to home

delivery, local retailers

Jeep/ trackers 27 Local market, Srinagar,


Bus 19 Local market, Srinagar,


Truck 12 Rishikesh, Haridwar, Dehradun


49/69

49 | P a g e

Storage

Scientific storage was not available in any of the cluster. No storage practice was

adopted by the growers. All farmers sold their produce just after harvesting. In case of sale to

mandi, the produce was harvested previous day evening or in the same day early morning. In

case of selling to retailers shop or to local markets, they harvested their produce in the same

day. Few of the farmers in both the clusters used Amber and 2000-64 variety of tomato,

which were having longer shelf life. They stored such tomatoes in their home place after

harvesting for up to 15 days in normal condition.

Processing

There were no processing units present in any of the cluster. Farmers are unaware of

the benefits from processing. No processing is done for any commodity in any of the cluster.


50/69

50 | P a g e

4.7 MARKETINGISSUES AND PROBLEMS

Marketing is one of the most important part of the whole supply chain. Efficient

marketing can help in increasing supply chain efficiency and profitability as a whole. The

marketing issues and problems observed in the studied areas are mentioned below.

Agrakhal

In Agrakhal local markets are Fakot and Agrakhal. There is a mandi i.e. Agrakhal mandi

run by Agrakhal mandi parishad. Forty percent of the farmers sell their produces in that

mandi. But the capacity of the mandi is less due to which it cannot accommodate the produce

of large farmers. This is the reason for which large farmers need to go for larger mandis of

Rishikesh, Haridwar, Dehradun etc. It increases transportation cost as well as decreases

profit. About 30 % of the farmers sell their produces in larger mandis like Rishikesh,

Haridwar, Dehradun etc. Other farmers sell their produce in the local markets and villages.

Now-a-days Participation of farmers club and SHGs initiated collective negotiation

process and it increases the bargaining power of the farmers.

Contract farming is not present in the cluster; only local mandi sometimes participated in

such practices in very small scale.

Proportion of produce sold in different markets in Agrakhal is shown below with the help of

exhibit 4.13

Exhibit 4.13 Proportion of produce sold in different markets in Agrakhal

30%

40%

30%

LOCAL VILLAGES/ MARKETS AGRAKHAL MANDI

RISHIKESH/DEHRADUN MANDI


51/69

51 | P a g e

Maletha

In Maletha local markets are Srinagar and Kirtinagar. The main problem of marketing in

this cluster is absence of any nearby mandi. About fifty five percent of the farmers sell their

products in Srinagar market directly to the retailers. About fifteen to twenty percent of the

farmers sell their product in the Kirtinagar market or local villages and other thirty percent of

the farmers sell their product in the far mandis of Rishikesh, Haridwar or Dehradun.

The shopkeepers of local markets were the major buyers of different vegetable

commodities and because of that those retailers were having high bargaining power it in turn

reduces the bargaining power of the farmers and compelled them to sell their produce at

lower prices. In this cluster participation of NGO or SHGs in the marketing process is

negligible and so collective negotiation is totally absent. Small quantity of produce per farmer

is another reason for low bargaining power of the farmers.

There is a newly opened collection cum distribution centre for agricultural

commodities in Maletha. But it is still not working and also people of the cluster were having

lower expectations from the centre because of its smaller size as well as distance from

different villages.

Contract farming was absent in the cluster.

Proportions of produce sold in different markets in Maletha are shown below in exhibit

no 4.14.

Exhibit 4.14 Proportion of produce sold in different markets in Maletha

16%

57%

27%

LOCAL VILLAGES/ MARKETS SRINAGAR MARKET

RISHIKESH/DEHRADUN MANDI


52/69

52 | P a g e

Common channels of marketing in the studied clusters

There were three common channels of marketing in both the clusters i.e. Agrakhal

and Maletha. Those were from producers to the mandi, from producers to retailers and from

producers to consumers.

In Agrakhal farmers sold their produce both in Agrakhal mandi as well as far mandis

like Rishikesh ,Haridwar and Dehradun mandi. In Maletha due to absence of any nearby

mandi produce were sold to far mandis like Rishikesh ,Haridwar and Dehradun mandi.

Farmers in Agrakhal also sold their produce to the local retailers. This type of channel

was common in Maletha because due to absence of mandi nearby most of the farmers liked to

sell their produce to the retailers of Kirtinagar and Srinagar. They also sold their produce to

the local retailers of their villages.

In both the clusters many of the farmers sold their produce in the villages, directly to

the consumers. This channel is very much efficient for producers as well as consumers

because it results in producers receiving good prices for their produce as well as consumers

paying lower prices. But this channel was having lower capacity to accommodate huge

amount of vegetables and spices produced by the farmers of the clusters.

Exhibit 4.15 Common channels of marketing in the studied clusters

production

asembling/cleaning

sorting/grading

transport

producer

auction

manditransport

store

sell

retailer

consumes

consumer


53/69

53 | P a g e

4.8 RISK AND MITIGATION MEASURES

Risk is associated with every step from production to marketing of vegetables and

spices. Crop failure results in huge losses of farmers. In both the study areas people were

suffered from different problems which leads to partial or complete crop failure as well as

receiving fewer prices for their produce. In those areas people should go for crop insurances

as risk mitigation measure but farmers of Agrakhal as well as Maletha were not aware of the

same. In those areas facilities for crop insurances were also not available

AGRAKHAL

i. Production risk-it includes weather risk, risk due to wild animals, pest anddiseases etc. there were huge losses in production due to these problems. Weather

risk includes availability of rain at cropping season, amount of direct sunlight,

frost; sleet etc. water scarcity is a major problem in the cluster and lack of rainfall

may even leads to crop failure. Wild animals are also a major problem in the

cluster. Feeding on the vegetables and destroying the fields by wild animals were

common in the area. Wild animals even attacks villagers and because of that many

of the farmers even quit growing crops in some of their fields. Direct sunlight for

long period in Kasmoli is also a problem for the vegetable growers. Sleet and frost

are common natural problem leads to reduction in production.

ii. Marketing risk- it includes risk associated with storage, transportation and poorinformation system as well as price fluctuation of commodities. Due to lack of

storage facilities in the cluster farmers cannot store the harvested produce for long

which in turn compelled them to sell their product at whatever price they get.

Many a times there were huge losses due to this. Transportation is another

problem in marketing due to hilly topographic condition. Lack of proper

information system leads farmer to sell their product in the mandi at ongoing price

irrespective of their wish.

iii. Credit risk- people are unaware of the procedures and facilities of institutionalcredit. So they go for private money lenders for credit which compels them to pay

high rate of interest.

Mitigation measures are followed by only by few farmers and those are mainly related

to the production risk. Mitigation measures include construction of water harvesting

tanks, roof water harvesting tanks etc against problem of water scarcity. Few of the

farmers used net to save crops and seedling from sleet. Against the storage problem few


54/69

54 | P a g e

farmers grow variety with long shelf-life like for tomato. For example some of the

varieties are amber, 64-2000 etc.

MALETHA

i. Production risk-it includes weather risk, risk due to wild animals, pest anddiseases etc. there were huge losses in production due to these problems. Weather

risk includes availability of rain at cropping season, sleet etc. water scarcity is a

major problem in the cluster and lack of rainfall may even leads to crop failure.

Wild animals are also a major problem in the cluster. Feeding on the vegetables

and destroying the fields by wild animals were common in the area. Another

probl

Vegetable Supply Chain- NABARD-Gharwal

Documents

Transcript of Vegetable Supply Chain- NABARD-Gharwal