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Final Report for Data Collection and Confirmation Study for Agricultural Value Chains in the Republic of India

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Final Report for Data Collection and Confirmation Study for Agricultural Value Chains in the Republic of India Repubic of India Final Report for Data Collection and Confirmation Study for Agricultural Value Chains in the Republic of India August 2015 JAPAN INTERNATIONAL COOPERATION AGENCY (JICA) Kaihatsu Management Consulting Inc. ID JR 15-008 Table of Contents Abbreviations ................................................................................................................. i Vegetable Availability Map of India ............................................................................... v Fruit Availability Map of India ........................................................................................ vi Introduction .................................................................................................................. vii 1. Outline of the Study .................................................................................................. 1 1.1 Objective of the Study ........................................................................................ 1 1.2 Study Area ......................................................................................................... 1 1.3. Background of the Study .................................................................................. 1 1.3.1 Changing need for assistance in the agriculture sector in India ................. 1 1.3.2 Global Food Value Chain Strategy of the Japanese Government .............. 2 1.4 Study Implementation Plan ............................................................................. 3 1.4.1 Workflow ................................................................................................... 3 1.4.2 Study Team ............................................................................................... 4 1.4.3 Methodology .............................................................................................. 5 2. Government Policy and Regulations ....................................................................... 10 2.1 Governmental policy ........................................................................................ 10 2.1.1 Evolution of agricultural policy ................................................................. 10 2.1.2 Recent policy developments .................................................................... 13 2.2 Government organizations and schemes relating to AVCs .............................. 19 2.2.1 Mission for Integrated Development of Horticulture (MIDH) ..................... 20 2.2.2 National Mission on Food Processing (NMFP) ........................................ 22 2.2.3 Mega Food Parks Scheme (MFPS) ......................................................... 22 2.2.4 Integrated Scheme for Agricultural Marketing (ISAM) .............................. 25 2.3 Other programs related to AVC ....................................................................... 28 2.3.1 Promotion of Famers Producer Organization (FPO) ................................ 28 2.3.2 Agri Export Zornes (AEZ) ........................................................................ 28 2.4 State Policy ..................................................................................................... 29 2.5 Donor Projects ................................................................................................. 32 2.6 Issues and bottlenecks for VC assistance ........................................................ 35 3. Current Status of and Bottlenecks in Agricultural Value Chains .............................. 36 3.1 Horticulture Sector ........................................................................................... 36 3.1.1 Overview of the sector ............................................................................. 36 3.1.2 Current status of and bottlenecks in value chains .................................... 57 3.1.3 Evaluation of VC ...................................................................................... 75 3.1.4 Need for assistance ................................................................................. 76 3.2 Livestock Sector .............................................................................................. 77 3.2.1 Overview of the sector ............................................................................. 77 3.2.2 Current status of and bottlenecks in value chains .................................... 90 3.2.3 Evaluation of VC .................................................................................... 100 3.2.4 Need for assistance ............................................................................... 101 3.3 Food Processing Sector ................................................................................ 102 4. Cases of AVC ....................................................................................................... 107 4.1 Private Sector ................................................................................................ 107 4.1.1 Indian companies .................................................................................. 107 4.1.2 Japanese companies............................................................................. 112 4.2 Successful case of AVC in India .................................................................... 114 4.2.1 Grape AVC in Maharashtra ................................................................... 115 4.2.2 Gherkin AVC in Karnataka .................................................................... 118 5. Outcome of Detailed Value Chain Survey ............................................................. 121 5.1 Framework of Detailed Value Chain Survey .................................................. 121 5.2 Priority state 1: Andhra Pradesh (AP) ............................................................ 125 5.2.1 Overview of the state ............................................................................. 125 5.2.2 Government policy and supporting system ............................................ 129 5.2.3 Mango (for table purpose) ..................................................................... 142 5.2.4 Mango (for processing purpose) ............................................................ 154 5.2.5 Tomato .................................................................................................. 162 5.2.6 Chili ....................................................................................................... 176 5.3 Priority state 2: Telangana ............................................................................. 188 5.3.1 Overview of the state ............................................................................. 188 5.3.2 Mango ................................................................................................... 197 5.3.3 Turmeric ................................................................................................ 205 5.4 Priority state 3: Odisha .................................................................................. 214 5.4.1 Overview of the state ............................................................................. 214 5.4.2 Mango ................................................................................................... 222 5.4.3 Cashew Nut ........................................................................................... 230 5.4.4 Ginger ................................................................................................... 237 6. Direction of future assistance ................................................................................ 245 6.1 Basic concept of AVC assistance .................................................................. 245 6.2 Priority state 1: Andhra Pradesh .................................................................... 251 6.2.1 Direction of assistance .......................................................................... 251 6.2.2 Project proposal .................................................................................... 258 6.2.3 Required input ....................................................................................... 261 6.3 Priority state 2: Telangana ............................................................................. 268 6.4 Priority state 3: Odisha .................................................................................. 272 ANNEX ..................................................................................................................... 279 ANNEX 1: Information summary of stakeholders ................................................. 279 ANNEX 2: Area-wise progress of Reform in APMC Act ....................................... 294 ANNEX 3: List of Donor Project related to AVC ................................................... 298 ANNEX 4: List of Reference Materials ................................................................. 299 ANNEX 5: TOR for the detailed value chain survey ............................................. 301 ANNEX 6: Outcome of stakeholder workshop ..................................................... 303 ANNEX 7: Problem analysis of priority crops in AP .............................................. 323 Abbreviations ADB Asian Development Bank ADH Additional Director Horticulture ADH(2) Assistant Director Horticulture AEZ Agri-Export Zones AH&D Department of Animal Husbandry, Dairying and Fisheries AHO Assistant Horticulture Officer AIDIP Agribusiness Infrastructure Development Investment Program AIMLEA All India Meat & Livestock Exporters Association AP Andhra Pradesh
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