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RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Value Chain Analysis Barley Prepared by: AGRI BUSINESS PROMOTION FACILITY Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis - Barley i Contents Page List of Tables iii List of Figures iv Executive Summary: Barley 1 Chapter 1- Introduction 5 1.1. Global Scenario 5 1.2. Indian Scenario 10 1.3. State Scenario: Production 14 1.4. District and cluster scenario: Production 14 1.5. Approach to Value Chain Analysis 17 Chapter 2- Pre Harvest Management 18 2.1. Major commercial varieties Grown in Rajasthan 18 2.2. New initiatives and Practices 22 2.3. Seasonality Pattern of Barley in Rajasthan visa-vis other parts of the world 22 2.4. Land Preparation 23 2.5. Sowing/Planting/Cultivation 23 2.6. Climatic and Soil Requirement 24 2.7. Nutrients Management 24 2.8. Water management 24 2.9. Weed Management 24 2.10. Pest & Disease Management 25 2.11. Recommended Good Agriculture Practices 28 2.12. Harvesting 28 2.13. Pre Harvest constraints of Farmers 29 Chapter-3: Post-Harvest Management 30 3.1. Post - Harvest Losses, Harvesting Care and Post – Harvest Equipment 30 3.2. Grade Specification & Grading at Producer level 30 3.3. Major storage Disease and Pest and their Control Measure 31 Chapter 4- Cost of production and Net value accruals to producers 35 Chapter 5- Supply Chain of commodity 36 Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis - Barley ii 5.1. Seasonal Availability and Price Pattern 36 5.2. Existing value chain Channels 38 5.3. Alternative Systems of Marketing 40 Chapter 6- Processing Infrastructure availability and utilization 43 6.1. Processing 43 6.2. Stakeholder’s Share in Consumer Rupee 46 6.3. Price build up & Marketing Efficiency Analysis 47 6.4. Consumer preference Analysis 47 Chapter 7- Existing Institutional support and Infrastructure facility 48 7.1. Support at cultivation stage 48 7.2. Support at post-harvest stage 53 Chapter 8- Gap & Constraint Analysis 56 8.1. As Perceived by Producers and Other Stakeholders 56 8.2. SWOT Analysis of the Value Chain of Barley 58 8.3. Key constraints in Barley crop: 59 8.4. PIESTEC Framework 60 8.5. Impact of GST over barley value chain: 62 Chapter 9- Proposed Intervention and Investments 63 9.1. Intervention areas for Value chain strengthening/restructuring 63 9.2. Envisaged Post-intervention value chain map of barley 67 9.3. Conclusion 72 References 73 Annexure 1: Stakeholders consulted over the study 75 Annexure 2: List out Central Warehousing Corporation (CWCs) in Rajasthan 77 Annexure 3: List of State Warehousing Corporation (SWCs) in Rajasthan 80 Annexure 4: Price variation of Barley in Rajasthan 82 Annexure 5: Rural Godowns in Rajasthan 86 Annexure-6: Product wise GST rates of Food Products 90 Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis – Barley iii List of Tables Table 1: Top 10 Barley Production Countries in 2013 ................................................................................. 6 Table 2: Export of Barley in 2014 .................................................................................................................... 7 Table 3: Major Importing Countries in Barley in 2014-15 ........................................................................... 8 Table 4: The Top 5 Largest Beer Brewing Companies in the World ....................................................... 10 Table 5: Year wise production of Barley in India ........................................................................................ 10 Table 7: Growth rate of Rabi Crops at All India level during 1980s, 1990s and 2000s ........................ 11 Table 8: Barley Production state wise (‘000MT) .......................................................................................... 13 Table 9: State Wise percentage area coverage and production.................................................................. 14 Table 10: District-wise production (‘000 tonnes) of Barley in top 5 districts of Rajasthan ................. 14 Table 11: Consultations of stakeholders for Value chain Analysis (Details in Annexure – 1) ............. 17 Table 12: Varieties of Barley in Rajasthan .................................................................................................... 18 Table 13: Seasonal Availability Pattern ......................................................................................................... 22 Table 14: Spacing and Seed Rate .................................................................................................................... 23 Table 15: Nutrient management of Barley ................................................................................................... 24 Table 16: Weed management .......................................................................................................................... 24 Table 17: Diseases of barley at cultivation stage.......................................................................................... 25 Table 18: Pests of barley at cultivation stage ................................................................................................ 26 Table 19: Special characteristics of barley for grading under AGMARK ............................................... 31 Table 20:Cost of Production .......................................................................................................................... 35 Table 21: Arrivals of Barley in various markets of Rajasthan in 2016-17 ................................................ 36 Table 22: Modal price trend of Barley in Alwar mandi in last 3 years ..................................................... 37 Table 23: List of market fees .......................................................................................................................... 40 Table 23 Price spread table of Barley (Illustrative for sale of barley flour used for preparing mix flour0 .................................................................................................................................................................. 46 Table 24: Tax Structure ................................................................................................................................... 62 Table 26: Yield loss and interventions for Value chain of barley ............................................................. 69 © Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley iv List of Figures Figure 1: Major Exporting Countries in Barley 2014 .................................................................................... 7 Figure 2: Major Importing Countries in Barley in 2014 ............................................................................... 8 Figure 3: World's top malt exporters, 2007 .................................................................................................... 9 Figure 4: World's top malt importers, 2007 ................................................................................................... 9 Figure 5: Production of barley in 1000 MT .................................................................................................. 11 Figure 6: Barley Production State Wise ......................................................................................................... 13 Figure 7: Price range of Barley in past 3 seasons ......................................................................................... 38 Figure 9:Consultation with MNCs and Value Chain Leaders ................................................................... 57 Figure 10: Indicative Post Intervention value chain map of Barley ......................................................... 68 Figure 11:FPC Development Approach ....................................................................................................... 70 © Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 1 Executive Summary: Barley Barley (Hordeum vulgare L.) is the most widely grown cereal crop over broad environmental conditions and is the world’s fourth important cereal crop after wheat, maize and rice. Barley is more tolerant to soil salinity than wheat, has a shorter growing season and is also relatively drought tolerant and requires around 0ne fifth the water required for wheat. Barley consumption apparently has a range of health benefits by way of regulation of blood sugar and reducing cholesterol levels in the blood. Its appearance resembles wheat grains, although it is slightly lighter in color and is more fibrous in nature. Food barley is principally cultivated for traditional foods and local beverages in various parts of the world. De-hulled barley is used to prepare a number of food items like flour, flakes etc. Barley is also a popular animal feed grain. Sprouted barley is naturally high in maltose, a sugar that serves as the basis for both malt syrup sweetener. Fermented, barley is used as an ingredient in beer and other alcoholic beverages. Malt barley, due to its limited usage and high- quality requirements, is a unique niche product in international grain market representing about 1.5% of the total world grain production
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