RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT

Value Chain Analysis

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 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 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 ( vulgare L.) is the most widely grown cereal crop over broad environmental conditions and is the world’s fourth important cereal crop after , 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 (USAID, 2014). It is particularly interesting in the context of smallholder commercialization and food security since it has high value as both cash and food crop. It is also the major raw material (about 90% of the total raw material cost) used in beer production. Despite the available potentials and opportunities for malt barley production and high market demand, farmer`s market orientation of malt barley in India and particularly in Rajasthan is quite low. Market oriented production can allow farmers to increase their income by producing output with higher return to land and labor in comparasion to wheat. Thus malt barley producers` market orientation in production is important in order to identify the bottlenecks of malt barley production; to meet the demand of breweries in the country, promote water use efficiency in agriculture and to enhance agricultural transformation. In the global context, around 144 million tonnes of barley is being produced annually, out of which around 14% is being produced by the Russian Federation followed by France and Germany. Australia, Ukraine and Canada are also important producers. India ranks 14th with production of about 1.5 million tonnes with 1% share in global production. Global demand is significant for beer production and value chain leaders include Soufflet (for malt production) and SABMiller (U.K.) and Heineken (Netherlands) and Carlsberg (Denmark) for beer production. Alwar district in Rajasthan has a significant place in the Indaian brewery industry with most of the significant players having their malting/ brewing industry in the district. In India, Barley is one of the most widely cultivated cereal crops. The major producing states are Rajasthan, U.P., Haryana and Punjab. Rajasthan amounts for about 40-50% and U.P. for 25-30% of total production. Malt Barley cultivation is currently popular in Punjab and Haryana. Mostly local varieties are used in Rajasthan and UP for self-consumption.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 2

Rajasthan ranks second in terms of acreage and tops in terms of production of Barley. The major producing districts include Jaipur, Sriganganagar, Sikar, Ajmer, Alwar and Chittorgarh. It is also emerging in Bundi, Baran, Tonk and Kota. A range of Barley varieties are grown in Rajasthan. These include BL-2 “Rajkiran”, HYVs RD 2035 and RD 2552, Malt varieties like RD 2624 and RD 2660 are specially developed for adaptability in rain-fed conditions. Pre-harvest constraints may be viewed in terms of necessary irrigation facility (2-3 per crop) and a range of diseases and pests. Apart from these, awareness among farmers on commercial varieties of barley is also a challenge. Inadequate access to appropriate storage facility, grading and sorting and packaging are some critical constraints at the post-harvest stage. Some important support institutions for Barley in Rajasthan are Department of Agriculture, Govt. of Rajasthan who provides extensive support through their team of State/District/ Tehsil and Panchayat level officials on; recommended package and practices for the crop, mini kits for crop demonstration and subsidy support on certified seed distribution to farmers. Other support structures of the Department of Agriculture are the Rajasthan State Seed and Organic Production Certification Agency, The Rajasthan State Seeds Corporation Ltd, the State Institute of Agriculture Management, Rajasthan State Warehousing Corporation, Department of Agriculture Marketing and Rajasthan State Agriculture Marketing Board who contribute to the productivity, storage and market linkage of the crop. Apart from this, there are various Krishi Vigyan Kendras around Jaipur, Alwar and Kota attached through State Agriculture Universities/ ICAR also contribute in terms of seed production, technology demonstration and post-harvest management of the crop. RARI, Durgapura has also played a significant role in production of improved varieties of Barley contributing to both production and productivity in the State. Other support institutions in Rajasthan include the ATCs of the State Government who help in technology demonstration and scientific trial of various varieties for recommending PoP for the various agro-climatic regions for the crop. Sowing of Barley normally takes place in Nov-Dec. Harvesting starts from March- April. Major markets in terms of arrival of barley in Rajasthan are Ganganagar, Jaipur, Sikar, and Hanumangarh. The modal price of barley is in the range of Rs 1300- 1500 per quintal. Barley is covered under the Minimum Support Price system of the Department of Agriculture, Cooperation & Farmers Welfare of Govt. of India and the MSP has grown from Rs 550 in 2006-07 to Rs 1325 in 2017-181 Till a decade ago, the barley that farmers grew in semi-arid Haryana and Rajasthan due to water scarcity would mostly be used as animal feed. Now, with international breweries keen to source barley locally, these farmers are keen to increase their share in the value chain. In terms of marketing arrangements and processing there is apparently scope for some amendments and enforcements in the contract farming policy to encourage processor-producer linkages (in terms of mandi tax exemption, stamp duty on contracts/individual farmer agreements etc.). Direct procurements by processors from individual farmers or from storage/common facilities of FPCs is yet marginal. Firms like Soufflet are presently sourcing (in case of this firm) around 20,000 tonnes per annum for processing through APMCs as well as on the basis of MOUs with farmers. This is for Malt Barley. However, as indicated, barley flour, flakes etc. are yet relatively untapped in the context of processing and market options. Considering processors in the value chain and production of about 30 quintals per acre, the gross returns at Rs 1450 per quintal is about Rs 43500 per ha. The net accrual to farmers is about Rs 13750 per ha. The advantage in barley vis-à-vis wheat is that Barley requires only half (2-3 times) irrigation. Many farmers presently earn Rs 300 more per quintal from cultivating wheat than barley.

1 http://fci.gov.in/procurements.php?view=89

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 3

In this regard, there is scope to leverage interest of large firms like Soufflet and other malting/brewering companies who could support increase yield per acre of barley by over 50% through transfer of best practices and hence often ensure adequate value accruals to producers. Such options will incentivise cultivation. Key strengths of barley value chain are: It is less water intensive and highly suitable for semi arid condition of Rajasthan, Demand for malt variety is growing and hence increase in scope of earning of farmer. Key weakness of barley value chain are: Is less remunerative as compared to wheat, Non awareness of farmers on malt barley varieties and difficulty of processors to link directly with farmers.

Key opportunities in barley value chain are: Option through RACP for crop diversification from wheat to barley, growing demand for malt industry, good value addition opportunity for barley as a food grain. Key threats for barley value chian are: Most of the crops economic potential lies with procurement linked with malt companies and farmers fear for getting associated with such companies due to fear of rejection. Pre and Indicative Post-Intervention Value Chain of Barley  Pre Intervention Value Chain: Barley The present value chain of barley has 3 distinct activity marketing or production-distribution channels. In all these channels, farmers/producers supply commodities to the APMC through village level traders. APMC commission agents, in turn supply them to malt processors and thereafter malt barley is supplied to domestic brewers and distillers (Channel 1) and larger international brewers and distillers (channel 2). In channel 3 feed and barley is supplied through APMC commission agents to processors and then onward to domestic and global retailers. The critical constraints in many locations is that the price realization from barley cultivation is lower than that of wheat due to cultivation of local varieties, posing a challenge in increasing cropped area. Generally in case of Barley grain, the share of farmers in consumer rupee is 49% , that of APMC trader is 1%, Grain wholeseller is 3%, Processor is 26%, wholeseller is 7% and retailer is 14% .

 Indicative Post Intervention Value Chain: Barley In the envisaged post-intervention value chain of Barley, FPCs/farmer associations could bypass the APMC and commission agents and undertake the value chain activities like aggregation and operate common facilities (FCSCs) undertaking drying, storage, packaging and transportation. Upon these primary processing and storage activities, the commodity may be supplied to SME as well as large processers like “Soufflet and other large breweries/malting companies. Best Agricultural Practices, seeds etc. supplied by processors could enhance the yield and productivity per acre encouraging crop diversification. Many global players including Soufflet, SAB Miller and Carlsberg as well as smaller local breweries are in operation in the region. The FPCs could undertake a gamut of activities ranging from input facilitation (seeds, pesticides, fertilisers), custom hiring in addition to providing common facility storage and primary processing facilities. These could help in increasing net value accruals to farmers by 15-30%. As a matter of fact, apparently through Soufflet’s intervention of undertaking “contract farming” (on the basis MOUs) with about 3,500 farmers, the average net value accruals to contracted

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 4

farmers/producers has increased by over 15-30%. In addition, individual enterprise start-ups could be facilitated in secondary and tertiary processing of value-added barley products like oatmeal, puffed and roasted barley etc. The intervention plan of Barley may be broadly considered in the context of activities and stakeholders in three stages- Production stage/ Cultivation by producers/farmers, post-harvest stage and the processing stage. In the context of shift towards barley production to greater extent, the production of apt food/malt barley production than feed barley is important. It should be strengthened by adaption of best package of Agricultural Practices, capacity building of producers and also to evolve local self-governance and market linkage institutions like FPCs. Undertaking contract farming interventions are some of the interventions required to redress related constraints at the production stage. At the post-harvest stage, major constraints are high content of immature grains/dart and foreign materials in harvested barley, (largely) rain-fed irrigation and inadequate storage facility are present. Well-designed FCSCs could help address these vices issues at the farm/producer level. At the processing stage, gaps are most apparent, in terms of awareness amongst processors and inadequate producer processor links etc. These may be reduced through information dissemination and B2B initiatives matched with policy incentives (like mandi tax exemption) to facilitate the same. In the post intervention value chain, Gethe share of farmers in consumer rupee might still be at 49% , but the FPC may take the margin of additional 4% if it just bypasses the mandi and sells directly to the processors. It is also estimated that, the farmers’ share might alos increase by another 10% of its existing share if the farmers sell to Malt processors through FPC.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 5

Chapter 1- Introduction

Origin and Importance Origin: The exact origin of barley is debatable, possibly originating in Egypt, Ethiopia, the Near East or Tibet. However, it is fairly certain that barley was among the earliest cultivated grains, around the same time as domestication of wheat2. Barley was grown in the Middle East prior to 10,000 BC (6, 12, 13), but barley's cultivation in China and India probably occurred later. Barley was grown on the Korean Peninsula by 1500-850 BC along with millet and wheat.

Barley is a rich source of nutrients like protein, B vitamins, niacin, dietary minerals, and dietary fibre. The grain is a particularly good source of manganese and phosphorus. Raw barley is 78% carbohydrate, 10% protein, 10% water, and 1% fat. De-hulled barley is used to prepare a number of food items like flour, flakes, grits, etc. Barley in these forms can be used to make porridge, gruel, and a wide variety of other dishes in Central and Eastern Europe. In Saudi Arabia, people consume barley soup during Ramadan. Several other recipes in the Middle East like the murri, kashk, and kashkak use barley. Research suggests that barley consumption is beneficial in several ways. It reduces cholesterol levels in the blood, improves the regulation of blood sugar, and has other health benefits too. However, since barley contains , it is not recommended for people with gluten-related disorders. Barley is also extensively used in beer and whiskey production. Non-alcoholic beverages like barley water and barley roasted tea are also produced from barley. In the US, half of the barley produced is used to feed livestock. Barley is also the principal feed grain in Canada, Europe, and the northern US. Barley is also used as an algicide in England where barley is placed in mesh bags and floated in fish ponds to curb algal growth in a natural manner. Other ornamental and cultural uses of barley are also found. 3

1.1. Global Scenario Barley producing countries In 2014, 144 million tons of barley was produced of which 14% was produced by the Russian Federation, the top producing country. France and Germany ranked second and third in barley production in the same year. In 2016, The European Union holds first rank in production of Barley (59,744 MT) with about 41% share of the total world production followed by Russian

2Young, B. 2001. Barley; The Versatile Crop. Southern Illinois University, College of Science, Ethnobotanical Leaflets. (http://archive.gramene.org/species/hordeum/barley_intro.html) (retrieved on April 9,2017)

3 World atlas, The leading barley producing countries(http://www.worldatlas.com/articles/the-leading-barley-producing- countries-in-the-world.html)(retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 6

Federation (12%), Australia (7%), Ukraine (7%) and Canada (6%). India ranks fourteenth in the production of barley (1,510 MT) with 1 % share. Barley is a widely adaptable crop. It has a short growing season and is also relatively drought tolerant. It is currently popular in temperate areas where it is grown as a summer crop and tropical areas where it is sown as a winter crop. Its germination time is one to three days. Barley grows under cool conditions, but is not particularly winter hardy. Barley is more tolerant of soil salinity than wheat, which might explain the increase of barley cultivation in Mesopotamia from the second millennium BCE onwards. Barley is not as cold tolerant as the winter (Triticum aestivum) but may be sown as a winter crop in warmer areas of Australia and Great Britain. Russian Federation was the major producer of Barley in the year 2013 with an annual production of 1, 53, 88,704 MT which contributes to 10.56% of the total share. Germany is next to Russian federation with an annual production of 1, 03, 43,600 MT. France, Canada, Spain and Turkey are some of the major producers of barley in the world.

Table 1: Top 10 Barley Production Countries in 20134

S. No. Country Production ( In MT) Share(%)

1 Russian Federation 1,53,88,704 10.56

2 Germany 1,03,43,600 7.1

3 France 1,03,15,900 7.08

4 Canada 1,02,37,100 7.03

5 Spain 1,00,57,600 6.9

6 Turkey 79,00,000 5.42

7 Ukraine 75,61,650 5.19

8 Australia 74,71,592 5.13

9 United Kingdom 70,92,000 4.87

10 Argentina 47,05,160 3.23

Total 9,10,73,306 62.51

Source: USDA Global Exports: Australia was the major exporter of barley in 2014 along with France, Argentina, and Canada The production is measured in MT and the value is measured in terms of ‘000 US $.

4 APEDA Agrixchange, International Production (http://agriexchange.apeda.gov.in) retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 7

Figure 1: Major Exporting Countries in Barley 2014

5,000,000.00 4,500,000.00 4,000,000.00 3,500,000.00 3,000,000.00 2,500,000.00 2,000,000.00 1,500,000.00 QTY 1,000,000.00 500,000.00 -

Table 2: Export of Barley in 20145

S No. Country Quantity (MT) Value (‘000 US $)

1 Australia 42,94,602 12,39,406

2 France 38,05,421 9,84,292

3 Argentina 11,13,481 3,34,799

4 Canada 6,85,048 2,21,819

5 United Kingdom 8,71,077 2,07,504

6 Germany 8,03,877 2,07,026

7 Ukraine 7,92,307 2,01,268

8 Russian Federation 6,76,263 1,54,692

9 Romania 4,95,235 1,31,969

10 Denmark 2,81,867 86,687

Total 1,38,19,178 37,69,462

Source: USDA Global Imports China was the major importer of barley in 2014. It imports 54, 13,279 MT of barley which account for whooping 15, 73,838 (‘000 US $), next to it was Belgium with an annual import of 17, 24, 020 MT.

5 APEDA AgriXchange , FAO, Major exporters, (http://agriexchange.apeda.gov.in) retrieved on April 9, 2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 8

Figure 2: Major Importing Countries in Barley in 2014

6,000,000.00 Major Importing Countries

5,000,000.00

4,000,000.00

3,000,000.00

Quantity 2,000,000.00

1,000,000.00

-

Table 3: Major Importing Countries in Barley in 2014-15 Sr. No. Country Quantity (MT) Value(‘000 US $)

1 China 54,13,279 15,73,838 2 Belgium 17,24,020 4,42,891 3 Netherland 18,93,450 4,38,404 4 Jordan 9,38,313 2,55,996 5 Algeria 7,70,222 1,96,613 6 Turkey 6,75,994 1,64,189

7 Kuwait 5,70,751 1,45,181 8 Brazil 3,99,877 1,26,281 9 Spain 4,01,963 94,294 10 Israel 3,43,432 87,495 Total 1,31,31,301 35,25,182

6As per USDA, the total barley production in the world was 129.0 million tonnes in 2012-13 out of which 14.3 per cent is traded. EU- is the biggest producer of barley accounting for 41.3 per cent share. Other major producers of barley in the world in 2012-13 are Russia (10.1 per cent), Ukraine (6.3 per cent), Canada (6.1 per cent) and Australia (6.1 per cent). Ukraine, France and Russia are the major exporters. As per DGCI&S, India’s exports of barley were negligible from 2001-02 to 2006- 07, but increased to 0.35 million tonnes in 2007-08 and stood at 0.27 million tonnes in 2012-13. India’s imports of barley are nil. Quantitative ceiling on export of barley was removed w.e.f. 5th March, 2002, and since then export of barley continues to be free. Import of barley was made free w.e.f. 14th November, 2002, and it continues to be under OGL at zero import duty. The domestic wholesale prices of barley (Jaipur) and MSP of barley have been compared with the international prices of Barley, Canadian Western No.1, Winnipeg, during the period from 2001-02 to 2012-13. The domestic wholesale prices of barley have been generally higher than international prices of barley during the period from 2001-02 (Q1) to 2012-13 (Q4). This indicates that Indian barley may

6 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=40&KeyId=477

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 9

not be very competitive as an exportable commodity beyond its neighbors, given the freight costs etc. But since India’s exports are mainly to countries like UAE, Oman, Bhutan and Nepal which are nearer to India than the major barley exporting countries like Australia, EU-27 countries, Ukraine, Russia, Argentina and Canada, the difference in freight charges explains why it is still possible for India to export barley to nearby countries. Malt barley Global production International maltsters are currently facing some challenges. Japanese malt demand has been declining due to economic conditions and lower sales of full malt beer. Other malt markets such as Brazil have been very competitive in recent years due to imports of lower quality and lower priced winter barley from the EU. New malting capacity in the EU, the Russian Federation, and Ukraine are also increasing competition in offshore malt markets. Most of the growth in demand for malting barley and malt during the next five years will be in countries with rapidly expanding beer production, e.g. China (18% growth), the Russian Federation and Eastern Europe (17% growth), South America (17% growth) and Africa (21% growth). Figure 3: World's top malt exporters, 2007

Figure 4: World's top malt importers, 2007

Top 5 Beer Producing Companies in the World Data is on top 5 beer production units by brewery for the year 2013 and is in millions of hectolitres. (1 hectolitre = 100 litres). Percent change is from the year 2012. Country is where the global head offices are located. (Please note: The figure from SABMiller does not include the 57.4 million hl from shareholding in China Resources Snow Breweries. Following list is the latest available data as of November 26th, 2014.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 10

Table 4: The Top 5 Largest Beer Brewing Companies in the World7 Production % of World Beer % Change S.No Company Country Volume( In Production from 2012 hectolitre, hl) 1 Anheuser-Busch InBev Belgium/Brazil 399.0 20.20% 13.00% 2 SABMiller U.K. 187.4 9.50% -1.30% 3 Heineken Netherlands 178.3 9.00% 3.80% 4 Carlsberg Denmark 119.7 6.10% -0.50% China Resource Snow 5 China 117.1 5.90% 10.20% Brewery Ltd.

(Sources: Anonymous (Barth Reports 2000 - 2014.))

1.2. Indian Scenario In India, barley is one of the most widely cultivated cereal grain crops. This is cultivated as a summer crop in temperature regions and as a winter crop in tropical regions. Barley is a short growing season crop and has good drought tolerant. Production of Barley India for the last ten years is presented in the table below:

Table 5: Year wise production of Barley in India8 Market Year Production (In 1000 MT) Growth Rate Y2006 1221 1.16% Y2007 1328 8.76% Y2008 1196 -9.94% Y2009 1689 41.22% Y2010 1355 -19.78% Y2011 1663 22.73% Y2012 1619 -2.65% Y2013 1752 8.21% Y2014 1831 4.51% Y2015 1613 -11.91% Y2016 1510 -6.39%

Source: USDA The trend shows a mixed result with the production figures fluctuating around 1600 thousand MT since 2009. The reason possibly being the direct competition of barley with Wheat and Mustard in north India. Also good rainfall during 15-16 and 16-17 also boosted production of wheat and mustard and hence overall production of barley is negative in last two years. The major producing states of Barley in India are Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Punjab and West Bengal. Barley is grown for many purposes, but the majority of all barley is used for animal feed or malting. High protein barleys are generally valued for food and feeding, and starchy barley for malting. Barley is a good livestock feed and is a good source of protein. It can be rolled, ground, flaked or pelleted, but by-products from malting and brewing are also used in feed production. Barley is also used for pasture, green feed, hay, roughage and bedding.

7 Anonymous (http://www.barthhaasgroup.com) (retrieved on April 9,2017) 8 USDA(* Estimates),(Unit –Million Tonnes) (http://www.karvycommodities.com/Presentations/Commodity%20Module_Barley.pdf) (retrieved on April 9, 2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 11

Table 6: Growth rate of Rabi Crops at All India level during 1980s, 1990s and 2000s 1980s 1990s 2000s Crop A P Y A P Y A P Y Barley -5.4 0.6 5.9 -2.7 0.6 3.2 0.2 2.1 1.7 Note: A-Area, P-Production and Y – Yield per ha9 The above table shows, the area under barley has de-grown during 1980s and 1990s and has been almost stagnant in decade 2000s. It can thus be inferred that the area under Barley has not grown much since decades. The reason being the increase in area and productivity of wheat and other rabi crops such as Mustard and pulses in north-central India which has around 80% of area for total barley produced in India. Figure 5: Production of barley in 1000 MT

Production (In 1000 MT) 2000 1800 1600 1400 1200 1000 800 Production (In 1000 MT) 600 400 200 0

9 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=40&KeyId=477

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 12

Selected state wise Area, Production and Productivity of Barley crop In India (2013-14, 2014- 15 and 15-16)

Area Production Productivity

States/UT (In ' 000 Hectare) (In ' 000 MT) (In Kg./Hectare) 2013 2014 2015 2013- 2014- 2015- 2013 2014 2015 -14 -15 -16 14 15 16 -14 -15 -16 Bihar 10.2 12.1 10.7 14.3 13.4 13.9 1398 1109 1304 Chattisgarh 2.6 2.3 2.4 3.7 3.0 1.2 1423 1304 500 Delhi 0.1 0.1 0.1 0.2 0.2 0.0 3000 3167 291 Gujarat - - 13.0 - - 17.0 - - 1308 Haryana 39.0 33.0 29.0 153.0 105.0 99.0 3923 3182 3414 Himachal 17.3 21.7 19.2 28.2 37.8 34.3 1626 1739 1786 Pradesh Jammu and 12.5 6.7 6.7 7.1 4.0 4.1 567 602 622 Kashmir Jharkhand ------Madhya 86.7 83.0 97.0 150.0 104.3 176.2 1730 1257 1817 Pradesh Maharashtra ------Nagaland 0.5 0.5 0.5 0.5 0.5 0.5 1019 1019 1019 Punjab 12.0 11.0 9.0 46.0 39.4 33.3 3833 3582 3700 309. 343. 256. Rajasthan 942.0 962.4 766.4 3046 2803 2993 3 3 0 Sikkim 0.6 0.5 0.5 0.6 0.5 0.5 1017 1020 1044 Uttar 157. 170. 124. 450.0 315.0 269.0 2866 1853 2169 Pradesh 0 0 0 Uttarakhand 23.3 21.3 18.9 31.5 24.5 18.5 1351 1149 983 West Bengal 2.4 2.0 2.5 3.6 3.0 3.5 1500 1500 1400 673. 707. 589. 1830. 1613. 1437. India 2718 2280 2439 5 5 4 7 0 5

Source: Ministry of Agriculture and Farmers Welfare, Govt. of India. (ON1394) & Past Issues. Haryana and Punjab have reported highest productivity of Barley in India touching around 38 to 39 quintals per ha. The productivity of Rajasthan has been at around 30 quintals per ha.

Exports and Imports

Total Supply (In million tonnes) Total Demand (In million tonnes) Calendar Year Imports Production Exports Consumption 2007-08 0 1.33 0.35 1 2008-09 0.003 1.22 0.17 1 2009-10 0 1.69 0.05 1.5 2010-11 0.002 1.35 0.03 1.35 2011-12 0 1.66 0.05 1.55 2012-13 0.04 1.62 0.27 1.53 2013-14 0.05 1.74 0.45 1.2 2014-15 0.05 1.7 0.1 1.5

Source: USDA (* Estimates), (Unit – Million Tonnes) India’s annual production has been stable at 1.2-1.7 million tonnes in recent years although production is low, the country is self-sufficient, besides exporting an average of 0.1-0.2 million tonnes of barley annually. The imports are also not really significant as per the table above. The area

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 13

under cultivation has also remained stagnant at 0.7-0.8 lakh hectares, with a per-hectare yield of around 2,000 kg. Table 7: Barley Production state wise (‘000MT) State 2009-10 2010-11 2011-12 2012-13

Rajasthan 619.80 954.80 789.15 852.58 Uttar Pradesh 362.00 333.56 404.00 446.00 Haryana 137.00 129.00 153.00 167.00 Madhya Pradesh 110.00 103.00 138.30 144.92 Punjab 47.00 44.00 47.00 47.00 Himachal Pradesh 16.20 27.74 30.39 36.25 Uttarakhand 26.00 30.10 28.00 30.73 Bihar 12.90 25.10 16.69 15.23 Jammu & Kashmir 7.86 8.67 4.20 6.95 West Bengal 2.40 2.80 3.34 3.50 Others 13.50 4.10 4.58 2.29 All India 1354.66 1662.87 1618.65 1752.45

Source: Ministry of Agriculture Figure 6: Barley Production State Wise

1200

1000

800

2009-10 600 2010-11

400 2011-12 200 2012-13

0

Overall India’s barley production has increased by about 35.05 per cent over the decade (2003-13). During the above period the maximum growth in production was seen in Haryana (128.76 per cent). The other top three barley growing states with significant growth in production are Rajasthan (108.56 per cent), Madhya Pradesh (17.63 per cent) and Himachal Pradesh (16.94 per cent).10

10 Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research-reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 14

Table 8: State Wise percentage area coverage and production States % share of Area Coverage % share of Production Rajasthan 30 40 Uttar Pradesh 34 31 Madhya Pradesh 12 9 Others 24 20

% share of Area Coverage % share of Production

Rajasthan Uttar Pradesh Rajasthan Uttar Pradesh

Madhya Pradesh Others Madhya Pradesh Others

20% 24% 30% 40% 9% 12%

34% 31%

In India, barley is largely grown in the states of Uttar Pradesh, Rajasthan and Madhya Pradesh, with area contribution of 34%, 30% and 12%, respectively. Rajasthan ranks second in terms of acreage and tops in terms of production. Rajasthan accounts for 40% of total production followed by Uttar Pradesh (31%), Madhya Pradesh (9%) and Haryana (6%)

1.3. State Scenario: Production Over half of the barley grown in the state is of two-row variety, which is processed into barley flour and blended with wheat flour to make flat bread. The crop residue is used as animal feed by farmers. Due to extensive usage of corn as food, very small quantity of barley is used in feed manufacturing industry in India. A discussion on Two row Vs six row variety of barley is given chapter 2. The spot prices for barley in the Jaipur market in India have increased by 33.41 per cent over 2016-17 from that of 2015-16. The average price of barley in May 2016 was Rs 1131.6 per quintal.11

1.4. District and cluster scenario: Production The major producing districts of Barley in Rajasthan are Jaipur, Ganganagar, Sikar, Ajmer and Hanumangarh. Jaipur is the top barley producing district in the state having (180,062 MT) production. The top 5 Barley producing districts in Rajasthan are given below: Table 9: District-wise production (‘000 tonnes) of Barley in top 5 districts of Rajasthan Districts Production (In MT) Jaipur 180,062 Ganga Nagar 124,436

11 Dr M. Ketharaj S. Jeyakumar, Barley Production on Rise, 2010 (http://www.efymag.com/admin/issuepdf/Barley_May10.pdf) (retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 15

Sikar 101,505 Ajmer 43,542 Hanumangarh 38,569 State 766,379

Source: As per Grant Thornton’s Analysis In catchment area Jaipur is the top barley producing district in the catchment area having (180,062 MT) production. The production share of the catchment in the total state production of Barley is 61%.

Total Production in the catchment Area in MT (2014-15) 464,079 Total Production in Rajasthan in MT (2014-15) 766,379 Percentage share in the State Production 61% Top Producing Districts in the catchment zone Jaipur, Ganganagar The top 5 Barley producing districts in the catchment area are given below

Particulars Production (In MT) Jaipur 180,062 Ganganagar 124,436 Ajmer 43,542 Alwar 30,698 Chittor 24,932

Barley is part of the value chain intervention crop in 1. Bansur, 2.Dooni, 3. Z Distributary and 4. Mokhampura clusters under RACP project. The APP data for the state and clusters is given below for an average of last ten years.

The percentage of cropped area in 6% in Bansur, 2.06% in Mokhampura, and 3.12% in Deoli- dooni. SRR for Barley in these districts stands between 32 to 37% showing that around, 60% of farmers use home seeds and balance 35-40% farmers purchase seed from the market.

Seed demand for the clusters could be therefore at 275800 kg considering total 2758 ha under Barley and a seed rate of 100 kg per ha and 35% of this seed may be targeted to be replaced. The net seed demand for the intervention clusters would therefore be around 96530 kg valuing Rs 19,30,600 at seed price of Rs 20 per kg.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 16

Table-10.1:Area, Production and marketable surplus

Cluster Area (Ha) Production Marketable Value of surplus (MT) surplus (MT) @ (Rs lacs) 80%

Bansur 368 1349 1079 151 Dooni 314 471 377 53 Z Distributory 1929 5854 4683 656

Mokhampura 160 453 362 51

Total 9306 17923 14338 2007

The total area under Barley crop in major value chain cluster areas is 9306 Ha and the total estimated production in 16-17 was 17923 MT. Out of this, marketable surplus is calculated at 80% of the total production and the value of marketable surplus is calculated to be around 2007 lacs in the corresponding period.

Resource mapping – Barley clusters

Cluster Major mandi/s Distance from Warehouses/ No of around cluster major cities nearby Cold store with FPCs Capacity targeted

Bansur Alwar, Khairtal, 55 kms from Alwar, Alwar - CWC- 2 Khedli, Kothputli 142 kms from 3500 MT, SWC- Gurgaon 30,050 MT, Dooni Tonk, Malpura, 38 kms from Tonk, NA 2 Deoli, Niwai, 68 kms from Niwai Uniyara Z- Sri Ganganagar, 48 kms from Abohar, Sri Ganganagar – 2 Distributary Hanumangarh, 63 kms from CWC – 35,200 MT, Gajsinghpur, Jaitsar, Hanumangarh, 70 SWC – 6000 MT, Padampur, Sri kms from Suratgarh, Rural godown – Karanpur, Sri 33 kms from Sadul 23,300 MT Sadulshahar, sahar Abohar (Punjab) Mokhampura Jaipur, Bagru, 45 kms from Jaipur, CWC – 23844 MT 1 Chomu, kisangarh, 91 kms from Ajmer Dooni, Chaksu

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 17

1.5. Approach to Value Chain Analysis In order to evaluate the value chain of Barley, consultations were held with major stakeholders in the chain including farmers, Consumers, Processors, traders, supporting public and private service providers and institutions etc. in various parts of the state. Major Barley producing clusters were considered for survey within Rajasthan. Table 10: Consultations of stakeholders for Value chain Analysis (Details in Annexure – 1)

Surveyed Markets for the Value Chain Analysis

 35 farmers ( Five each from Bansur, Deoli, Manohar Thana, Bari, Baran, Sangod and Mokhampura cluster  Two processors  Seven traders Within and outside Rajasthan  Seven Government officials from Department of Agriculture and KVKs  Three APMCs  Three NGOs

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 18

Chapter 2- Pre Harvest Management

2.1. Major commercial varieties Grown in Rajasthan BL-2 and CCN resistant 'Rajkiran' along with recently developed high yielding varieties RD 2035, RD 2552 have wide adaptability and are suitable for saline conditions, RD 2503 and RD 2668 (Two rowed type) is used for the purpose of making Malt. Varieties RD 2624 and RD 2660 are specially developed for adaptability in rainfed conditions. RD 2715 has great potential to produce grain as well as green fodder. RD 2786 (IR-TS) and RD 2794 (Salinity tolerance) were identified having good yield potential and rust resistant 12 Table 11: Varieties of Barley in Rajasthan

RD 2552, RD 2035, RD 2592, BH 902 Timely sown, irrigated

RD 2508 Late sown, irrigated

RD 2508, RD 2624, RD 2660, PL 419 Timely sown, Rainfed

RD 2552, NDB 1173 Salt affected soils

RD 2035, RD 2052 Nematode (Molya) affected soils

DWR 28, DWRUB 52, RD 2668 Malt Barley (Timely sown, irrigated)

DWRB 73, DWRUB 64 Malt Barley (Late sown, irrigated)

RD 2035, RD 2552, RD 2715 Dual Purpose Barley (Feed & Forage)

2.1.1. Barley varieties used across India and their targeted yield: Traditionally grown barley varieties are tall and weak stemmed and generally lodge even under relatively low soil fertility conditions. Therefore, researches on varietal improvement have restructured the plant type to take full advantage of higher level of soil fertility and irrigation. Some of the newly evolved varieties and their characteristics are described below.

 Ratna: Ratna variety was developed at IARI, New Delhi and released for rainfed areas of eastern Uttar Pradesh, Bihar and West Bengal. It is highly tolerant to saline, alkaline soil conditions. It yields about 150 q/ha of green fodder after 65 days of sowing and

12 Rajasthan Agricultural Research Institute, Jaipur (http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute-jaipur) (retrieved on April 9, 2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 19

regeneration crop yielding 20 quintals of seed per hectare. If the green fodder is not taken, it yields about 25-30 quintals grain per hectare. It matures within 125-130 days and gives a fairly good yield even under unfavourable environmental conditions. Plants have good tillering ability. Ear size is 9.0-9.5cm.

 Azad (K.125): Azad variety has been developed at C.S.A. University of Agriculture and Technology, Kanpur. It is suitable for cultivation in areas of eastern Uttar Pradesh, Bihar and West Bengal. It is highly responsive to improved management practices. It has a fair degree of resistance to yellow rust disease. It does well under irrigated conditions. It is good for dual purpose like fodder and grain. It yields about 150 quintals of green fodder per hectare after 65 days of sowing and regenerates to produce a yield of 20 quintals per hectare of grain. It matures in 115-120 days. It has yield potential, of 35-38 quintals of grain per hectare under irrigated conditions.

 Vijaya: Vijaya variety has been developed at C.S.A University of Agriculture and Technology, Kanpur and released for rainfed areas of western Uttar Pradesh, I Delhi and Madhya Pradesh. It matures in 120-125 days. Plants of this variety are shorter in height as compared to other varieties. It does well in rainfed areas of Haryana and Punjab also. It has yield potential of 30-35 quintals of grains per hectare.

 Amber: This variety has also been developed at C.S.A. University of Agriculture and Technology, Kanpur. It matures in 130-133 days. Plants are 100-125cm in height. Ear size is 8.5-9.5 cm. It is suitable for growing in rainfed areas of eastern Uttar Pradesh. It is good for the production of malt for brewing. It has yield potential of 25-30 quintals of grains per hectare.

 RS-6: The variety RS-6 was developed in Rajasthan. It is suitable for cultivation under both rainfed as well as irrigated conditions. It has been recommended for central and eastern Rajasthan. It matures in 130-135 days. It has yield potential of 35 to 40 quintals of grain per hectare. It is very good for production of malt for brewing.

 Jyoti: Jyoti is a Six-row hulled variety. It has been developed at the C.S.A. University of Agriculture and Technology, Kanpur. It is suitable for growing in irrigated areas of Haryana, Punjab, Uttar Pradesh. Delhi, north-western Rajasthan, Bihar and West Bengal. Plant height is short. It has yield potential of about 35-40 quintals of grains per hectare. It matures in 120-125 days, under irrigated conditions, yielding 20-25 quintals of grains per hectare.

 Clipper: Clipper has been introduced from Australia. It is especially suitable for malt production and brewing. It matures in about 135-140 days. It is susceptible to yellow rust. It has yield potential of 28-30 quintals of grains per hectare under good management. However, this variety could not become popular among the farmers.

 PL-56: PL-56 is a six-row variety with broad and relatively upright leaves and a colour less leaf sheath. It has compact ears with well spread, barbed awns. It is moderately resistant to yellow rust. It is recommended for cultivation under rainfed conditions of Punjab. It has yield potential of30 quintals of grains per hectare.

 Ranjit (DL- 70): Ranjit variety of barley grows 75-85cm tall and is shorter by 15-20 cm than other varieties. It is six-row and heavy tillering variety, recommended for commercial cultivation in Punjab only. It is suitable for growing under irrigated conditions. It has yield potential of 30-35 quintals of grains per hectare. Due to its early maturity, it fits well in multiple crop rotations for late, I sowing after the harvest of crops such as potato, cotton or paddy.

 Karan-201, 231 and 264: Varieties Karan 201, 231 and 264 have been evolved under the All India Coordinated Barley Improvement Project. These are high yielding varieties and

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 20

good for chappati making. All of them are huskless varieties. These varieties fit in well in the multiple and relay cropping systems. These can be grown in problem soils too, like dry lands, alkaline and saline soils, etc. They can also be grown on lands lying fallow after a paddy crop has been taken. These are suitable for cultivation in the eastern and Bundelkhand region of Madhya Pradesh, Rajasthan and Gurgaon and Mohindergarh district of Haryana. The average yield of Karan 201, 231 and 264 are 38, 42.5 and 46 quintals per hectare, respectively.

 C- l64: Variety C-164 is a tall, six-row variety with compact ears and long awns. Its grain is bold, bright and amber. It is resistant to yellow rust. It has stiff straw and is, therefore, more suitable for cultivation under irrigated conditions. It has yield potential of 30-32 quintals of grain per hectare.

 Kailash: Variety Kailash is a six-row hulled variety suitable for growing in rainfed areas of medium to low elevation of Himachal Pradesh hills. It matures in 145-150 days. It is resistant to yellow rust. It has yield potential of about 40 quintals of grain per hectare.

 Dolma:The variety Dolma is suitable for growing in rainfed areas of medium to high elevation of Himachal Pradesh and Uttar Pradesh hills. It matures in about 140-150 days. It is fairly resistant to yellow rust. It has yield potential of 35-40 quintals per hectare.

 Himani: Himani variety was developed at Simla. It is suitable for growing in the medium to lower hill-valley of Uttar Pradesh and Himachal Pradesh. It matures about one week earlier than Kailash. It has yield potential of 32-36 quintals of grains per hectare.

 LSB-2: LSB is a six-row naked type barley variety suitable for growing at higher altitude of Himachal Pradesh and Uttar Pradesh hills. It matures in 145-150 days. It has yield potential of 25-30 quintals of grain per hectare.

 RDB-1: RDB-1 has been developed by mutation. It is suitable for growing under irrigated conditions in Rajasthan. It is susceptible to yellow rust and is suitable for rust free areas of Rajasthan. It has yield potential of 30-35 quintals of grain per hectare.

 BG-25: This variety has been developed at Haryana Agricultural University, Hissar. It is suitable for normal sowing conditions in Haryana. It is resistant to yellow rust. It matures in about 120-130 days. It has yield potential of about 30 quintals of grain per hectare.

 BG-108: This variety has been developed at Haryana Agricultural University, Hissar for commercial cultivation under late sown conditions. It takes about 120-125 days to mature. It is fairly resistant to yellow rust. It has yield potential of 20-25 quintals per hectare under late sown conditions.

 Kedar: This high yielding variety of barley has been evolved by Indian Agricultural Research Institute, New Delhi. It is suitable for late sown conditions. Kedar is a dwarf variety with profuse tillering and resistant against yellow rust and insects.

 Neelam: This variety yields up to 50 quintals per hectare. Its grains are hulled and amber in colour. This variety has been evolved by Indian Agricultural Research Institute, New Delhi,and is recommended for cultivation in both irrigated and rainfed conditions of Punjab, Haryana, Uttar Pradesh, and Bihar. This variety has higher contents of protein and lysine. 2.1.2. Differentiation of two row and six row varieties of barley: Most of the rest of the world uses six-row barley only for livestock feed, not for beer. it turns out to be a naturally-occurring result of a pair of mutations, one dominant and one recessive. Both two-

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 21

row and six-row barley have been around for a long, long time. Breeding efforts of the last half- century have reduced and perhaps functionally eliminated most of the differences between the two types of barley. Economies of scale at big breweries make many of their differences moot. There are still distinctions between kernel size, extract, protein and enzymes. Two-row barley kernels tend to be symmetrical and of an even size, so they tend to absorb water at about the same rate, and germinate and dry about the same; they’re also easier to grind in two-roller mills. Six-row barley has a symmetrical center, but the two lateral rows of kernels are a little shorter, thinner, and twisted slightly. Maltsters often separate each lot of six-row barley into several kernel size fractions since they differ in water uptake and germination speed. Six-Row Pros:  It has more protein, less starch, and a thicker than two-row.  Higher protein levels may help speed conversion to fermentable sugars. This is important to homebrewers using high mash-in temps; more conversion would take place than otherwise.  Six-row has higher enzyme content for converting starch into fermentable sugars. More enzymes means it can convert adjunct starches (which lack or are deficient in enzymes) during mashing. Offset this with more (less expensive) adjunct grain use, and you know why so many large breweries use six-row.  Six-row is less expensive per pound, and allows further cost cutting through the higher use of inexpensive adjuncts to offset the high protein levels.  Supplementing two-row malt with some six-row malt might increase extraction, conversion time, and fermentability, particularly if you have a high percentage of adjuncts.  Six-row yields more per acre.  Those thicker improve the filter bed for lautering.  Enzyme and protein levels are high enough that a brewer probably doesn’t want to use six- row barley exclusively in a recipe. (Adjunct grains are cheaper.) Unmalted cereals (corn and rice) are often mixed in with malt to compensate for the higher protein levels in six-row barley—up to 40 percent of six-row grist can be adjunct. New malt strains mean adding adjuncts is no longer necessary, but it’s economical and, in the case of some large breweries’ , traditional. Six-Row Cons:  Six row is more susceptible to the formation of dimethyl sulfide, a process begun through protein breakdown in malting. Some DMS is acceptable in some beer styles, but too much may contribute to a cooked or sweet corn flavor.  Higher protein content can result in more break material during wort boiling and cooling, which can cause protein haze. Pay attention to this extra hot break for coagulation and removal.  Six-row husks are high in polyphenols (tannins), which can contribute to protein- polyphenol haze, and can impart an astringent taste.  Higher protein content often indicates less starch for conversion in malting. Six-row malting barley contains from 12-13.5 percent protein, whereas two-row has 11-13 percent. Malting doesn’t change the protein levels much.  High protein levels can lengthen steeping time in the malting process, which causes erratic germination, particularly if low- and high-protein barleys are mixed to meet protein limits for malt. (And I was worried about controlling what went into my malt extract…)  High proteins can lead to other beer quality issues like color control.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 22

 Syrup adjuncts and six-row: Syrups are prepared by enzymatically hydrolyzing corn starch into fermentable sugars. It’s added to wort in fermentable form, which can take the wort over acceptable enzyme and soluble protein levels if you’re using six-row barley cultivars. Two-Row Pros:  Greater drought tolerance  You can make more beer from two-row than from six-row malt; its lower enzyme content, lower protein, greater starch content, and thinner husk make it better suited to higher extract. This is less obvious at the homebrew scale and more a concern for large breweries.  Arguably gives beer a mellower flavor than six-row. Two-Row Cons:  The lower diastatic (enzymatic) power of two-row becomes an issue when a large proportion of unmalted adjunct grain is used.  Two-row tends to be more expensive per pound.  Big breweries generally use far more adjunct grain than they strictly need; large amounts of adjuncts tend to have little body and less maltiness.

2.2. New initiatives and Practices Rajasthan has seen an increasing use of farm machinery. The use of machines is high in the major crop producing areas of southern and eastern districts of the state. However, there is a need to push mechanization around the barley productivity clusters under the project There are opportunities in production and sales of machinery for land preparation, moisture retention, seed fertilizer drills, plant protection, harvesting implements and packaging.

2.3. Seasonality Pattern of Barley in Rajasthan visa-vis other parts of the world Barley is sown in the period of October till December in Rajasthan. The harvesting time for barley in India is from March to May ending. The growth period is from January to March ending. Table 12: Seasonal Availability Pattern Crop Calendar Jan Feb March April May June July Aug Sept Oct Nov Dec

EU-27

Russia (Spring)

Australia

India Rabi

Rajasthan Note: Yellow highlight shows sowing and green shows harvesting season

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 23

2.4. Land Preparation13 Land should be prepared to fine tilth stage and weed free by giving 2 – 3 ploughing with cultivator followed by planking. Field should be well levelled and completely free from weeds. In case of summer pulse, sowing is generally delayed till harvesting of main crop.

2.5. Sowing/Planting/Cultivation14 A. Seed Sources Higher grade seed (to produce certified seed, foundation seed is to be obtained) should be obtained from source approved by the concerned state seed certification agency/ Raj Seeds. B. Treatment Seed treatment is advisable in barley cultivation to prevent Smut disease and termites. Treat seed with Vitavax or Bavistin @ 2 gm per Kg seed or for the covered Smut treatment with 1:1 ratio mixture of Thiram + Bavistin or Vitavax @ 2.5 gm per Kg seed. To avoid crop loss due to termite, seed treatment with 150 ml of Chloropyriphos (20 EC) or 250 ml Formathion (25 EC) in 5 litre of water for 100 Kg seed is recommended. Table 13: Spacing and Seed Rate Production Condition Seed rate (kg./Ha.) Time of Sowing Spacing (cm) Irrigated Timely sown 100 10-25 November 23 Irrigated Late sown 125 26 Nov.-31 Dec. 18 Rainfed Plains 100 25 Oct.-10 Nov. 23 Rainfed Hilly Region 100 20 Oct.-7 Nov. 23

The best method of sowing in barley cultivation is with a seed drill or dropping seeds with a chonga attached to a desi plough.

Planting time15 Barley is very versatile in its planting time as it has a slightly lower frost tolerance (1°C) than wheat and can be planted earlier in the season. It is also a better option than wheat for late planting, especially if feed grain prices are good. Preferred planting times are from late October to early December but this will vary for each region depending on frosts and seasonal effects. Early planting will generally produce higher yields, larger grain size and lower protein levels making it more likely to achieve malt quality. Late plantings will often mature in hot dry weather which can reduce grain size, yield and malting quality. Plant populations While barley can produce a large number of tillers, best yields will be achieved with an established plant stand of 800,000 to 1.2 million plants/ha (80-120 plants/square metre). While barley can tolerate quite high plant populations without significant yield reductions, if plant populations fall below 80 plants per square metre, yield can be reduced. Lower plant populations can also encourage excess or late tillering resulting in a less even crop and delayed harvest. Late tillers often have smaller seed which also affects the quality of the crop.

13 Barley Cultivation Information Guide (http://www.agrifarming.in/barley-cultivation/) (retrieved on April 9,2017) 14Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research- reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017) 15 Queensland Government, Barley planting, nutrition and harvesting (https://www.daf.qld.gov.au/plants/field-crops-and-pastures/broadacre-field- crops/barley/planting-nutrition-harvesting) (retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 24

Seed rate For seed varieties of Feed, Seed rate goes from 15-20 kg per acre. However, for Malt Variety as per Soufflet seed rate is 50-55 kg per acre.

2.6. Climatic and Soil Requirement16 Barley can be grown as summer crop as well as winter crop. This crop is mainly cultivated as Rabi season crop in India. This crop requires temperature of 12°C to 16°C at growing stage and about 30°C to 32°C at maturity. This crop is very sensitive to frost at any stage of its growth. This crop yield is highly impacted by incidence of frost at flowering stage. Barley has very good tolerance to drought conditions. Barley crop can be grown on wide range of soil including saline, sodic & lighter soils. However, this crop thrives best in sandy to moderately heavy soils having neutral to saline reaction and medium fertility. Acidic soils are not suitable for barley cultivation.

2.7. Nutrients Management17 The following is the fertilizer application in barley cultivation. Table 14: Nutrient management of Barley Sowing condition Nitrogen (kg/ha) Phosphorous (kg/ha) Irrigated Timely sown 60 30 Irrigated Late sown 60 30 Rainfed Hilly Region 40 20 Rainfed Plains 30 20 In case of irrigated crop, 1/2 of the Nitrogen and full dose of Phosphorous should be applied as basal application and remaining 1/2 of the Nitrogen should be top dressed after 1st irrigation or 1 month after sowing the crop

2.8. Water management18 2 to 3 irrigations are enough in barley cultivation for optimum yield. First irrigation should be given at crown root initiation, 25 – 30 days after sowing. Second irrigation should be given at panicle emergence, 60 – 65 days after sowing

2.9. Weed Management19 Broad leaf and Narrow leaf are the main weeds found in barley cultivation. Appropriate weedicides should be used to control these. Broad leaf => 625 grams of 2, 4-D (Na-salt 80%) and 625 grams of 2,4-D (Easter 38%) should be mixed in 250 litres of water separately and applied per hectare after a month of sowing. Narrow leaf=>1250 grams of Isoproturan 75% WP should be mixed with in 250 litres of water and applied in 1 ha land after a month of sowing. Table 15: Weed management Type of Weeds Weedicides Dose/ ha. Method of Application

Broad Leaf 2,4-D (Na-Salt 80%) 625 gm 30-35 day after sowing in Chenopodiun album (Bathua) 2,4-D (Easter 38%) 625 gm 250 liters of water Convolvulus arvensis (Hirankhuri) Anagalis arvensis (Krishna Neel)

16 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) retrieved on April 9.2017) 17 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) retrieved on April 9.2017) 18 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) (retrieved on April 9.2017) 19 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/)( retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 25

Cronopus didyrmus (Wild Carrot)

Narrow Leaf Isoproturan 75 % WP or 1250 gm 30-35 day after sowing in Avena fatua (Wild ) Pendimethillin (Stomp) 3.75 litres 250 liters of water Phalaris minor (Kanki) 30% EC

Both (Broad & Narrow Leaf) Isoproturan 75% WP 1.00 Kg 30-35 day after sowing in 2,4-D (Easter 38%) 0.75 Kg 250 liters of water Isogard Plus 1.25 Kg

2.10. Pest & Disease Management20 Covered smut, loose smut, Leaf rust, Stem rust, Stripe rust, Powdery mildew, Net blotch, Spot blotch, Stripe, Root rot and foot rot, mosaic and sclerotial disease are the diseases and pests found in barley cultivation. Some of them can be prevented from occurring in seeds by seed treatment. Disease of Barley Table 16: Diseases of barley at cultivation stage Causal S No Name of the disease Symptoms Control measures organism Smutted heads; grains Treat seeds with Ceresan or replaced by black Agrosan GN before sowing Ustilago agglutinized spore 1 Covered smut @ 2-2.5 g/kg of seed; grow hordei masses, covered by resistant varieties ; rogue out persistent white, papery the smutted plants membrane Solar-heat or hot-water Smutted heads; grains treatment of seed; grow replaced by a black Ustilago resistant varieties; rogue out 2 Loose smut powdery mass of spores; nuda the smutted plants; dry seed finally only the naked treatment with rachis remaining behind Carboxin(0.25)% Small, round light- yellowish- brown Puccinia pustules on leaves later Grow resistant varieties seed 3 Leaf rust hordei the pustules turn black, treatment with Benzjmidazole covered by the epidermis Spray the crop with Zineb @ Reddish-brown to dark- 1.70 kg in 1,025 litres of brown, oblong, pustules water per hectare at Puccinia on culms and leaf fortnightly intervals ; seed 4 Stem rust (black rust) graminis sheaths; later, the treatment with Plantvax tritici pustules turn black (0.25%) for seedling grains become shrivelled infection; grow resistant varieties Small, yellow, elliptical Spray the crop with Zineb pustules on leaves, @1.70 kg per hectare at forming stripes which fortnightly intervals ; seed Stripe rust (yellow Puccinia 5 later turn black; treatment with Oxycarboxin rust) striiformis sometimes the pustules (0.25%) for seedling appear on the leaf infection; grow resistant sheaths and glumes varieties

20 Barley Cultivation, Insect Pest and Diseases (http://dwd.dacnet.nic.in/barley_prod/barley_prod_tech.htm) ( retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 26

Causal S No Name of the disease Symptoms Control measures organism Dust with finely powdered White to dark powdery sulphur @ 15-20 kg per Erysiphe 6 Powdery mildew masses appear on all hectare ; grow resistant graminis aerial parts of the plant varieties; soil treatment with Benomyl ( 600-1000g/100kg) Scattered, oblong, dark- brown, reticulate (net- Treat seeds with Ceresan or like) blotches on leaves Agrosan GN before sowing Pyrenophora unlike those in the ease @ 2-2.5 g/kg of seed; grow 7 Net blotch teres of the stripe disease, the resistant varieties ; rogue out lesions do not extend to the smutted plants; rogue out the leaf-sheaths, lesions badly affected plants also on floral bracts Dark-brown to black lesions usually occur first on the coleoptiles and progress up wards individual lesions on Seed treatment with organo- Pyrenophora 8 Spot blotch leaves round to oblong mercurials; grow resistant sativum with de margins; spots varieties coalesce to form blotches, heavily Infected leaves urn lure early or dry up Long, dark-brown, linear Treat seeds with Ceresan or stripes on leaves Pyrenophora Agrosan GN before sowing; 9 Stripe affected leaves turn graminea grow resistant varieties rogue brown, twist and dry up; out diseased plants no grain formation Roots and collar show browning; later, Treat seed with Ceresan or elongated brown spots Agrosan GN before sowing Ophiobolus 10 Root rot and foot rot appear on leaves, grow resistant varieties sativus glumes and spikelets; practice crop rotation and ears are poorly filled; sanitation grains are shrivelled

A white weft of mycelium is formed near the base Pellicularia of the plant on which Practice crop rotation and 11 Sclerotial disease rolfsii white to reddish-tan sterilize the soil spherical sclerotia appear

Mosaic mottling of leaves sometimes Use virus free seed ; grow 12 Stripe mosaic Virus associated with flecking; resistant varieties like Rojo’, also infects and ‘Hansen ‘CL-320S-4’ wheat Pests of Barley Table 17: Pests of barley at cultivation stage S No Name of the Pest Description and damage Control measures 1 Termites Social insects that live Mix thoroughly 5% Aldrin or

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 27

S No Name of the Pest Description and damage Control measures underground in colonies ; attack Chlordane dust with the soil just at young seedlings as well as grown the time of sowing or during up plants; the attacked plants preparation of the land for Bowing wither and ultimately die

Moths are straw-coloured, lay eggs in clusters inside the leaf- In the initial stage, pull out and 2 Stem-borer sheaths; pinkish-brown caterpillars destroy dead-hearts; dust 5% BHC bore into stems and kill central or spray 0.05% Endosulfan shoots; causing dead-hearts

Adults are earthern-grey weevils; Plough the fields in summer to grubs feed on roots, whereas the expose and kill the pupae; mix Weevil, 3 adults out growing- points or thoroughly Aldrin or Heptachlor with

nibble at margins of loaves; the 12 deep layer of soil; for adults, severer at the seedling stage dust 5% BHC Caterpillars are general feeders; Cutworms out seedlings at the soil level; Dust 10% BHC on the soil around 4 resowing may be necessary, when the plants the attack is severe Trap caterpillars in grass heaps or Caterpillars march from field to plough up infested fields; dust 10% Armyworm dield and voraciously feed on 5 BHC or spray 0.05% Endosulfan; foliage; appear after heavy rains early –stage caterpillars are easy to or early floods control Nymphs and adults lacerate tender leaves, causing Dust 5% BHC or spray 0.02% low Thrips, 6 characteristic whitish streaks; Phosphamidon or 0.03%

temperature favourable to rapid Dimethoate or Diazinon multiplication Nymphs and adults suck sap from Dust 5% BHC or spray 0.02% low leaves, tender shoots and 7 Aphids Phosphamidon or 0.03% immature rain; extremely fast, Dimethoate or Diazinon forming large colonies

Adults stout, mud-like in 8 Surface grasshopper colour; polyphagous, feeding on Dust 5-10% BHC foliage and tender shoots

Apply Phorate (10%) or Disulfoton The fly has assumed the status of (5%) to the soil at the time of a pest recently; maggots attack 9 Shoot fly sowing; spray seedlings with 0.03% seedlings and kill the central Dimethoate, Phosphamidon or shoots, causing dead-hearts Methyl-demeton Disease Management Cercospora Leaf Spot Affected plants show small round spots, violet red in colour. Spray with Bavistin at the rate of 500 g/ha at 30 and 45 days after sowing for effective control of this disease. Dry Root Rot and Stem Rot

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 28

It is caused by Macrophomina Phaseolina. Affected plants show rotting of roots and stems of the plant after a month of sowing. Seed treatment with 0.25% Brassical before sowing may be helpful in controlling the disease. Mosaic Mottle The virus causing this disease is transmitted mechanically or by seeds or by aphids. Affected plants shows green patches, leaves become deformed and reduced in size and their margin show upward rolling. Growing of disease free seeds, resistant varieties and repeated spray of insecticide to control aphids may be helpful in controlling the disease.

2.11. Recommended Good Agriculture Practices Advanced varieties and their characteristics: The first dwarf mutant variety RDB-1 in the country was released from Rajasthan Agricultural Research Institute here and provided the genetic background for the development of dwarf varieties, a very important feature for barley crop. Other land marks have been the salinity tolerant BL-2 and CCN resistant 'Rajkiran' along with recently developed high yielding varieties RD 2035, RD 2552 having wide adaptability and suitability for saline conditions, RD 2503 and RD 2668 (Two rowed type) for malting purpose. Varieties RD 2624 and RD 2660 developed for rainfed conditions are fabulous contributions of this institute. There is also development of country's first dual purpose barley variety RD 2715 having good potential to produce grain as well as green fodder. RD 2786 (IR-TS) and RD 2794 (Salinity tolerance) were identified having good yield potential and rust resistant. Land Preparation and Treatment: Barley crop can be grown on wide range of soils including saline, sodic & lighter soils. However, this crop thrives best in sandy to moderately heavy loam soils having neutral to saline reaction and medium fertility. Acidic soils are not suitable for Barley cultivation. Land should be prepared to fine stage and weed free by giving 2 to 3 ploughing with cultivator followed by planking. Seed Treatment–Seed treatment is advisable in barley cultivation to prevent smut diseases and termites. Treat seeds with Bavistin @ 2 gm per Kg seed for the treatment of Loose Smut disease. For covered Smut disease, seeds should be treated with Vitavax @ 2.5 gm per Kg. Seeds should be treated with 250 ml Formathion(25 EC) in 5 liter of water for 100 Kg seed to prevent termite infestation. Seed rate and sowing - The best method of sowing in Barley cultivation is with a seed drill or dropping seeds with a Chonga attached to a desi plough. Lines owing with seed drill is more effective. The followings how seed rate and spacing in Barley cultivation. Integrated Nutrient Management - The following is the recommended fertilizer application in Barley Cultivation. In case of irrigated crop, half of the nitrogen &full dose of phosphorus should be applied as Basal application & remaining half of the ‘N’ should be top dressed after first irrigation or 1month after sowing the crop. Irrigation: Two to three irrigations are enough in Barley cultivation for optimum yield. First irrigation should be given at crown root initiation, 25 to 30 days after sowing. Second irrigation should be given at panicle emergence, 65-75 days after sowing

2.12. Harvesting Barley crop gets ready for harvest by the end of March to first fortnight of April. Since barley has character, it should be harvested before over ripening to avoid breaking of spikes due to dryness. Barley grain absorbs moisture from the atmosphere and should be stored at an appropriate

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 29

dry place to avoid storage pest losses. Machine harvesting is preferred in barley farming. Yield of the crop depends on the cultivator/variety, farm management practices and weather conditions. An average yield of 18 to 20 quintals/acre can be expected

2.13. Pre Harvest constraints of Farmers  Availability of variety: At present farmers are growing feed barley which is not suitable for malt processing.  Traceability: There is no mechanism as such for tracing the produce to their producers. Malt, being a high value product, needs traceability to ensure the quality.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 30

Chapter-3: Post-Harvest Management

3.1. Post - Harvest Losses, Harvesting Care and Post – Harvest Equipment After physiological maturity, 10 or 15 days are required to harvest barley with combine or manually using sickle in temperate dry lands. If this duration is exceeded, crop will get too dry and then cause shattering at harvest. Delayed harvest can thus lead to yield losses. Barley physiologically matures upon kernel moisture content drops to about 40 %. Harlan (1920) found that translocation to the kernels ceased at a moisture content of 42%. It can be harvested without loss of yield or quality after reaching about 35% kernel moisture but the grain can not be safely stored until the moisture content decreased to 14%, (Baldridge et al.). Depending on social economic situations such as plot size (acreage) various harvesting methods are used. Generally, for small and marginal farmers, manual harvesting using sickle works best as this reduces wastage due to shattering, and results in more fodder production. Fodder production is limited when mechanical harvesters are used. The means of transportation of barley grains to market or to the granaries depend upon farm size, physical and geographical conditions, availability of transportation facilities. Small size farmers prefer to sell their crop in village Harvested barley should be packed in gunny bags or HDPE bags to avoid pilferage and to protect it from post-harvest pests.

Packaging materials:  Jute bags: Gunny bags made up of jute are widely used by farmers and traders. As per NAFED, packing of barley should be made in New B Twill (Jute) gunny bags in 100 kg net.  HDPE/pp bags: These bags are also used for packaging barley.

3.2. Grade Specification & Grading at Producer level In Barley, the quality parameters such as moisture content, foreign matter, other food-grains, admixture of other varieties, damaged grains, immature grains, and weevilled and shrivelled grains are considered while grading. The buyers offer the price on the basis of visual inspection of the lot or available sample considering above mentioned quality factors Specifications under AGMARK Under the Agricultural Produce (Grading and Marking) Act 1937, the national standards for Barley are notified, considering the quality factors like: a) moisture, b) foreign matter, c) other food-grains, d) admixture of different varieties, e) damaged grains, f) immature grains, and g) weevilled and shrivelled grains.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 31

General characteristics Barley shall:  Be the dried mature grains of Barley vulgar peers raised in the Rabi season;  Be sweet, hard, clean, wholesome, uniform in size, shape, colour and in sound merchantable condition  Be free from added colouring matter, moulds, weevils, obnoxious substances, discoloration, poisonous seeds and all other impurities except to the extent indicated in the schedule;  Uric acid and aflatoxin shall not exceed 100 mg and 30 micrograms per kilogram respectively;  Be free from rodent hair and excreta;  Comply with the restrictions in regard to pesticides/insecticides residue (Rule 65), poisonous metals (Rule 57), naturally occurring toxic substances (Rule 57-B) and other provisions prescribed under the Prevention of Food Adulteration Rules, 1955 and as amended from time to time. Special characteristics Table 18: Special characteristics of barley for grading under AGMARK Maximum limits of tolerance (% by weight) Moisture Foreign matter Other Damaged Immature Weevilled Grain Edible Grains and Grains Designation Organic Inorganic Grains Shrivelled Grains Grade I 12.0 .10 Nil 1.0 1.0 2.0 .5 Grade II 12.0 .25 .10 1.5 2.0 4.0 1.0

Source: DMI

3.3. Major storage Disease and Pest and their Control Measure In India, post-harvest losses caused by unscientific storage, insects, rodents, microorganisms etc., account for about 10 per cent of total food grains. The major economic loss caused by grain infesting insects is not always the actual material they consume, but also the amount contaminated by them and their excreta which make food unfit for human consumption. About 500 species of insects have been associated with stored grain products. Nearly 100 species of insect pests of stored products cause economic losses. 1. Rice weevil: Sitophilus oryzae (Curculionidae: Coleoptera): Both the adults and the grubs cause damage. The developing larva lives and feeds inside the grain causing irregular holes of 1.5 mm diameter on grains of rice, sorghum, wheat, barley, maize before harvest and in storage. The weevils destroy more than what they eat. 2. Lesser grain borer: Rhyzopertha dominica (Bostrychidae: Coleoptera): Both the adults and the grubs cause damage. The adults and grubs bore into the grains feed and reduce them to mere shells with many irregular holes. The adults are powerful fliers and migrate from one godown to another, causing fresh infestation. Adults produce a considerable amount of frass, spoiling more than what they eat. 3. Angoumois grain moth: Sitotroga cerealella (Gelechiidae: Lepidoptera):

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 32

Only the larvae cause damage by feeding on the grain kernels before harvest and also in store. The larva bores into grain and feeds on its contents. Exit holes of 1 mm diameter with or without a trap door, are seen on the affected cereal grains. As it grows, it extends the hole which partly gets filled with pellets of excreta. It imparts unhealthy appearance and smell. In a heap of grain, the upper layers are most severely affected. Integrated Management of Stored Produce Pests The control methods of stored produce pests can be categorized into preventive and curative measures Preventive measures  Brush the cracks, crevices and corners to remove all debris in the godown.  Clean and maintain the threshing floor/yard free from insect infection and away from the vicinity of villages.  Clean the machines like harvester and thresher before their use.  Make the trucks, trolleys or bullock carts free from infestation  Clean the godowns/ storage structures before storing the newly harvested crop to eliminate various lifecycle stages of pest hiding  Provide a metal sheet upto a height of 25 cm at the bottom of the wood in doors to arrest the entry of rats  Fix up wire meshes to windows, ventilators, gutters, drains etc., to prevent entry of rats, birds and squirrels  Remove and destroy dirt, rubbish, sweepings and webbings etc from the stores  Close all the rat burrows found in godown with a mixture of broken glass pieces and mud plastered with mud/ cement.  Plaster the cracks, crevices, and holes found on walls, and floors with mud or cement and white wash the stores before storing of grains.  Provide dunnage leaving gangway or alleyway of 0.75 to 1 m all around to maintain good storage condition.  Store the food grains in rat and moisture proof storage structures.  Disinfest the storage structures receptacles by spraying malathion 50 EC @ 3 lit 100 m before their use. Curative measures i) Ecological methods a. Manipulate the ecological factors like temperature, moisture content and oxygen through design and construction of storage structures/ godown and storage to create ecological conditions unfavourable for attack by insects b. Temperature above 420 C and below 150 C retards reproduction and development of insect while prolonged temperature above 450 C and below 100 C may kill the insects. c. Dry the produce to have moisture content below 10% to prevent the build-up of pests. d. Kill the pests bio stages harboured in the storage bags, bins etc., by drying in the sun light. e. Store the grains at around 10 % moisture content to escape from the insects attack.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 33

f. Manipulate and reduce oxygen level by 1% to increase the CO2 level automatically, which will be lethal to all the stages of insects.

ii) Physical methods a. Provide a super heating system by infrared heaters in the flour mills and food processing plants to obtain effective control of pests since mostly the stored produce insects die at 55 –600 C in 10 – 20 minutes. b. Modify the storage atmosphere to generate low oxygen (2.4% and to develop high carbon di oxide (9.0 – 9.5) by adding CO2 to control the insects. c. Seed purpose: Mix 1 kg of activated kaolin (or) lindane 1.3 D (or) malathion 5 D for every 100 kg of seed and store/pack in gunny or polythene lined bags. d. Grain purpose: Mix 1 kg activated kaolin for every 100 kg of grain and store. To protect the pulse grains, mix activated kaolin at the above dosage or any one of the edible oils at 1 kg for every 100 kg of grain or mix 1 kg of neem seed kernel for every 100 kg of cereal / pulse and store. e. Do not mix synthetic insecticides with grains meant for consumption. iii) Cultural methods a. Store the grains in sealed bags to prevent the infestation by insects iv) Mechanical methods a. Sieve and remove all broken grains to eliminate the condition which favour storage pests. b. Stitch all torn out bags before filling the grains. v) Chemical methods a. Treat the walls, dunnage materials and ceilings of empty godown with malathion 50 EC 10 ml/L (or) DDVP 76 WSC 7 ml/L1 at 3 Ll spray solution/10 sq.m. b. Treat the alleyways and gangways with malathion 50 EC 10 ml/L or DDVP 76 WSC 7 ml/ L (1 L of spray fluid/270 m3 ). c. Spray malathion 50 EC 10 ml/ L with @ 3 L of spray fluid / 100 m2 over the bags. d. Do not spray the insecticides directly on food grains. • Use knock down chemicals like lindane smoke generator or fumigant strips pyrethrum spray to kill the flying insects and insects on surfaces, cracks and crevices e. Use seed protectants like pyrethrum dust, carbaryl dust to mix with grains meant for seed purposes only. f. Decide the need for shed fumigation based on the intensity of infestation. g. Check the black polythene sheets or rubberized aluminium covers for holes and get them ready for fumigation. h. Use EDB ampoules (available in different sizes 3 ml, 6 ml, 10 ml, 15 ml and 30 ml) at 3 ml/quintal for wheat and pulses and 5 ml/ quintal for rice and paddy (Do not recommend EDB for fumigation of flour oil seeds and moist grains) i. Use EDCT (available in tin containers of 500 ml, 1 liter and 5 litres) at 30 – 40 litres/ 100 cubic meter in large scale storage and 55 ml/quintal in small scale storage. Fumigation Use fumigants like ethylene dibromide (EDB), ethylene dichloride carbon tetra chloride (EDCT), aluminium phosphide (ALP) to control stored produce pests effectively. Apply aluminum phosphide (available in 0.6 g and 3 gram tablets) @ 3 tablets (3 gram each) per tonne of food grains

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 34

lot with help of an applicator. Choose the fumigant and work out the requirement based on the following guidelines.  3 tablets of aluminium phosphide 3 g each per tonne of grain.  21 tablets of aluminium phosphide 3 g each for 28 cubic meters  Period of fumigation is 5 days Mix clay or red earth with water and make it into a paste form and keep it ready for plastering all- round the fumigation cover or keep ready sand snakes. Place the required number of aluminium phosphide tablets in between the bags in different layer. Cover the bags immediately with fumigation cover. Plaster the edges of cover all round with wet red earth or clay plaster or weigh down with sand snakes to make leaf proof. Keep the bags for a period of 5-7 days under fumigation based on fumigant chosen. Remove the mud plaster after specified fumigation periods and lift cover in the corner to allow the residual gas to escape. Lift the cover after few hours to allow aeration.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 35

Chapter 4- Cost of production and Net value accruals to producers

This is a sample case of typical farmer with about 1.6 ha of land holding. About 1.4 ha is deployed to Barley. The gross yield is 30 quintals per ha. The market rate of the sale is about Rs. 1450 per quintal or Rs. 43500 per ha. The cost of cultivation is about Rs.29750 per ha. Net realization is about Rs. 13750 per ha. Out of total cost of cultivation per ha, about Rs. 10000 is cost of land preparation, seed cost is about Rs. 2000, fertilizer and pesticide cost is about Rs. 7750, weeding related (labour cost) is about Rs. 4500 and harvesting cost is about Rs. 3000 and threshing cost is about Rs. 2500. Packing cost is about Rs. 750 per ha. Transportation cost to mandi is about Rs. 250 per ha- all totalling around Rs. 29750 per ha. The fluctuation in prices of Barley is between Rs. 1300- Rs. 1500 in a year per quintal. The range of yield is 20 quintal to 30 quintal per ha in a year. Cost of production per quintal is Rs 991 and profit per quintal is Rs 459. Table 19:Cost of Production Sr. No. Particular Amount (in Rs. Per ha) A. Income (30 qtls/ha @ Rs 1450/ qtl 43500 B. Cost of Production

1 Land Preparation Cost 10000 2 Seed Cost 2000 3 Input Cost 7750 4 Weeding Cost 3500 5 Harvesting Cost 3000 6 Thrashing cost 2500 7 Packing and Transportation Cost 1000 8 Total Cost of Production 29750 B Net Profit per ha 13750 C Fodder yield (30 qtl) 9000 D Gross income including fodder 22750

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 36

Chapter 5- Supply Chain of commodity

5.1. Seasonal Availability and Price Pattern 5.1.1. Seasonal Availability In India, barley is mostly cultivated as a Rabi crop. Sowing normally takes place between October and December. Harvesting starts from end-March until mid-April in the northern states, whereas in the central and southern states, harvesting takes place from February to May. The market arrivals start from March onwards. In Rajasthan and India as whole typically the crop duration of barley is 120-150 days.

Oct Nov Dec Jan Feb March April May June July Aug Sept

Sowing Growth Period Harvesting Peak Period Lean Period 5.1.2. Market Arrivals & Prices in Major Markets of Rajasthan Barley is sold shortly after threshing in Rajasthan. Major markets where barley arrived in bulk quantity are Ganganagar, Jaipur, Sikar etc. Arrival of Barley in major markets of Rajasthan is presented in the table below. Ganganagar, Jaipur, Alwar, Ajmer, Bundi, Tonk and Kota are major barley producing areas in RACP districts. Table 20: Arrivals of Barley in various markets of Rajasthan in 2016-17 No of Arrival Sr. District APMC APMC name Quantity No name centers (in MT) Anoopgarh, Gajsinghpur, Gharsana, Jaitsar, Kesarisinghpur, Lalgarh Jatan, Padampur, Raisingh 1 Ganganagar 13 47890.10 Nagar, Rawla, Sadulshahar, Sri Karanpur, Sri Vijayanagar, Sriganganagar Bagru, Chaksu, Chomu, Jaipur (Grain), Jaipur(Grain)(Chandpole), Kishan Renwal(Fulera), 2 Jaipur 10 47580.19 Kishan Renwal(Sambhar), Kishangarh Renwal, Kotputli, Kotputli(Pawla) Fatehpur, Neem Ka Thana, Sikar, Sri Madhopur, 3 Sikar 4 26843.40 Surajgarh Bhadara, Goluwala, Hanumangarh, Hanumangarh Hanumangar 4 11 Town, Hanumangarh(Urlivas), Nohar, Pilli Banga, 19916.10 h Rawatsar, Sangriya, Suratgarh Alwar, Khairthal, Khedh(Bodaramev), 5 Alwar 5 9821.80 Khedli(laxmangarh), Kherli 6 Jhunjunu 3 Chirwa, Jhunjhunu, Nawalgarh 4348.10 7 Chittorgarh 4 Begu, Fatehnagar, Kapasan, Nimbahera 4221.80

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 37

Bandikui, Bandikui(Geejgarh), Dausa, 8 Dausa 8 Lalsot,Lalsot(Mandabari), Mahua Mandabar(Mahua), 3102.30 Mahuwa, Mandawar Bikaner(Grain), Khajuwala, Lunkaransar, 9 Bikaner 4 2287.72 Sridungargarh 10 Bhilwara 3 Bhilwara, Bijolia, Mandalgarh 1252.50 11 Udaipur 1 Udaipur 1032.40 Ajmer (Grain), Beawar, Kekri, Madanganj Kishangarh, 12 Ajmer 5 997.20 Vijay Nagar(Gulabpura) 13 Bundi 3 Bundi, DEI(Bundi), Keshoraipatan 796.60 Deoli, Malpura, Malpura(Todaraisingh), Niwai, Tonk, 14 Tonk 6 785.95 Uniyara 15 Kota 4 Itawa, Kota,Ramaganj Mandi 419.80 16 Churu 4 Churu, Sardar Shahar, Sujangarh(Churu) 367.90 17 Nagaur 2 Deedwana, Kuchaman City 265.60 18 Rajasamand 1 Rajasamand 189.40 Jodhpur (Grain)(Mandor), Jodhpur(Grain)(Bhagat Ki 19 Jodhpur 2 104.40 Kothi) 20 Pali 2 Rani, Sumerpur 92.20 Bayana, Bharatpur, Bharatpur(Kumer), Deeg, Kama, 21 Bharatpur 6 54.00 Nagar Swai Gangapur City, Gangapurcity(Old Lal mandi), Sawai 22 3 26.04 Madhopur Madhopur 23 Baran 2 Atru(Kawai Salpura), Baran 15.90 24 Karauli 1 Hindoun 4.90 Grand Total 172,416.30

Source: Agmarknet

Table 21: Modal price trend of Barley in Alwar mandi in last 3 years Month Price (Rs./Qtl) Month Price (Rs./Qtl) Sep-15 1,122 jun-16 1,570 Oct-15 1,193 Jul-16 1,553 Nov-15 1,250 Sep-16 1,489 Dec-15 1,342 Oct-16 1,363 Jan-16 1,333 Nov-16 1,443 Feb-16 1,322 Dec-16 1,475 Mar-16 1,315 Jan-17 1,575 Apr-16 1,426 Feb-17 1,450 May-16 1,488 Barley crop is gaining price season over season considering the growth in demand of millet crops because of their increasing use in malting industry. Price range of Barley in past 3 seasons was from Rs. 1100 to Rs. 1600.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 38

Figure 7: Price range of Barley in past 3 seasons

Price (Rs./Qtl) 1,700 1,600 1,500 1,400 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 0

5.2. Existing value chain Channels There are 3 important production-distribution/marketing channels. In all these channels, farmers/producers supply commodities to the APMC through village level traders. APMC commission agents in turn supply them to malt processors and thereafter malt barley is supplied to domestic brewers and distillers (channel 1) and larger international brewers and distillers (channel 2). In channel 3 feed and barley is supplied through APMC commission agents to processors and then onward to domestic and global retailers. The critical constraints in many locations is that the price yield from barley cultivation is lower than that of wheat in some seasons affecting crop diversification into this less water intensive crop. There is apparently scope for diversification into high yielding barley than feed barley in many clusters to cater to the many local processors in the region.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 39

Figure-8: Existing pre-intervention chain Barley

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 40

Marketing Cost Marketing costs are the actual expenses incurred in bringing goods and services from the producer to the consumers. The marketing costs normally include:  Handling charges at local points  Assembling charges  Transport and storage charges  Handling charges by wholesaler and retailer Market fees, commission charges and taxes on Bajra in Rajasthan are described in table below. Table 22: List of market fees

S. No Particulars Charges (%)

1 Mandi tax 1.6%

2 Commission charge 2%

3 Tax --- Miscellaneous charges (Handling, weighing, It varies from market to market. 4 loading, unloading, cleaning etc) In Jaipur anaj mandi Rs 10-15 is the loading and unloading charges per quintal 5 Overall addition to purchase price from farmer 6%

Marketing margin Total marketing margin is cost involved in moving the barley from producer to consumer and profit of various market functionaries. Absolute value of the total marketing margin varies from market to market, channel to channel and time to time. Generally, traders from mandi undertake onward supply adding 2% margin to bulk handlers and animal feed units.

5.3. Alternative Systems of Marketing 5.3.1. Direct Marketing This concept involves marketing of produce i.e. Barley by the farmer directly to the consumers/millers without any middlemen. Direct marketing enables producers and millers and other bulk buyers to economize on transportation cost and improve price realization. It also provides incentive to large scale marketing companies i.e. millers and exporters to purchase directly from producing areas. Procurement of Barley by government through FCI, NAFED at MSP and by spot trading through NCDEX is example of direct marketing. NAFED is a government authorized agency. It procures Barley directly from farmers at MSP for government. In 2012 to 13, NAFED purchased 366895.77 MTs of various food grains like Bajra, Barley, Wheat, Paddy, Rice and Maize at Rs. 504.88 crore in its outright account. The total Barley procured by NAFED during this period is 2154.57 MTs worth Rs 240.78 lakhs. There is limited private market that purchases Barley directly from farmers in Rajasthan. Recently, Soufflet has shown interest in direct procurement of Barley from farmers in Rajasthan from Hadoti region. 5.3.2. Contract Farming

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 41

Contract farming is yet to develop in Barley, mainly because of the current rules and regulations in contract farming state in the state. This is despite the fact that many global players in the value chain including Carlsberg and SAB Miller as well as Soufflet are into processing or sourcing activities in the state. Many firms like Soufflet are already into “Contract farming” to a limited extent (and have submitted representation regarding limitations in the policy through GT). They have also been transferring Good Agricultural Practices (GAP) to farmers. The limitations as suggested by the industry is mentioned below:

SN Rule No Rule Challenges/ Suggestions

1 5 The agreement shall be written Its time consuming and costly. on stamp paper of the value of Non practical – since many farmers Rs.100. don’t plan sowing in advance. And when they plan, its already 15-30 days left for sowing. Managing MoU signing operations for 10-15000 farmers within this short time is not feasible.

2 9 Separate registration form Separate registration form at the APMC shall be filled for each can be replaced with a list of farmers, agreement sample agreement copy and company confirmation/undertaking

3 15 The contracting price shall be MSP is ok however previous years higher than the minimum modal price is not practical. support or the model price, whichever is higher, for the contracted agricultural produce during the previous harvest season, in the market committee concerned

4 17 If buyer fails or refuses to The buyer should be able to refuse, in purchase the agreed quantity case of bad quality. of the agriculture produce from the contract farming producer, he shall pay the amount of the difference between the agreed price and the actual sale price of the contracted produce in the market committee concerned to the producer.

5 Special Minimum quantity of 20,000 This is practically too tough, if the license mts restriction for barley. processor considers buying from FCSC.

6 Out of Purchase at MSP mandatory The same is not applied for purchases

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 42

mandi from within the Mandi procurement

7 Payment for Payment has to be made in This is not practical specially seeing purchase out cash the same day for cash transactions above Rs 20,000 per of mandi purchases out of Mandi day per customer is not allowed. premises premises

5.3.3. Private market yard There are no private market yards in different clusters where barley is significantly produced such as Bansur, Deoli, Pisangan and Sangod. However two major companies from Rajasthan like Star Agri Warehousing Ltd. and CGR Collateral Management Ltd. have taken licenses to operate their warehouses as Private market Yard. CGR is also a signatory of MoU with State Government of Rajasthan during GRAM, Kota and is keen to work with project farmers for offering their warehouses as Private market yard near to production centers from where farmers can store and sell their produce without going to Mandi. They are also offering 75% loan against warehouse receipt of barley to farmers.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 43

Chapter 6- Processing Infrastructure availability and utilization

6.1. Processing There are a large number of processors in the region including United Spirits and Carlsberg India in Alwar. Soufflet also has a processing unit in Alwar.

The Value Added Products for Barley include:

1. Barley flour 2. Barley malt 3. Barley flakes

The typical manufacturing process is summarily presented ahead.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 44

Barley Flour21:

Barley

Additional Water 5% Tempering

Decortication

Decorticated Barley

Additional Water 7% Tempering (10 min)

Popping

Popped Barley

Pulverization and Stirring

Flour

21 Anonymous (https://www.google.co.in/search?q=processing+flow+of+barley+flour&client=firefox-b- ab&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiexqaC2f3SAhWJrVQKHRafAA0Q_AUICCgB&biw=1525&bih=734#imgrc=mLyT_MtlH2beQM:)(r etrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 45

Barley Malt: The typical production process in the case of Malt is presented below

Barley

Preliminary Cleaning

Grading and Steeping

Germination

Kilning

Barley Malt

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 46

Barley Flakes: The typical production in case of Barley flakes is as follows:

Barley

Preliminary Cleaning

Conditioning/Tempering

DE hulling and Aspiration

Polishing and Pre-damping

Steam cooking and Flaking

Hot Air Drying

Barley Flakes

6.2. Stakeholder’s Share in Consumer Rupee The price spread along with margin at every stage of value chain starting from the farmer till retailer is presented in the table given below.

Table 23 Price spread table of Barley (Illustrative for sale of barley flour used for preparing mix flour0

Stakeholder share in Activity Value per Quintal (Rs.) consumer rupee

Consumer Pays 100% Retailing: Sale by retailer to About Rs. 2980 per quintal which makes 14% consumer a margin of 15% (Includes local logistics and storage) Wholesaling: Sale by wholesalers Rs. 2550 per quintal (Includes a margin of 7% to retailers 5% and local logistics and handling) Secondary processing: Sale after Rs 2350 per quintal (Gross value on sale 26% grinding and packaging after transportation, grinding, packaging and 10% margin)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 47

Wholesaler: Primary Processing: Rs. 1576 per quintal (Gross value on sale 3% Sale after sorting/grading to with gross profit margin of 6% after processors sorting grading ) APMC: Sale upon trading at the Rs. 1487 per quintal (1.6% mandi tax, 2% 1% mandi through auction aadat, loading, unloading) Production: Cost of production is Rs. 1450 per quintal (Gross value on 49% Rs. 991 per quintal (without fodder) procurement at Rs. 459; net value accrual to producers after cultivation costs is Rs. 991/quintal

The existence of a long chain of middle men including the APMC and related commission agents, producers share in consumers’ rupee is adversely affected. This mirrors the need for promotion of contract farming options eliminating/minimising the role of the APMC. However, the limitations in contract farming policy & statutes merits correction.

6.3. Price build up & Marketing Efficiency Analysis The price spread and values accrued to stakeholders across the chain reflects the profit margins of the accrued to different stakeholders. Much of the value accruals are accrued to processors and retailers. Producers’ incomes are apparently dependent on yield as well as whether they are dependent on feed or malt barley. Generally in case of sale of barley grain, farmers share in consumer rupee is 49%, trader – 4%, processor-26%, wholesaler – 7% and Retailer 14%.

In case of malt as a product, the farmers share would reduce to around 30% of the consumer price and the share of the processer increase to around 30% in the consumer price while the margins of trader and retailer remains almost similar.

6.4. Consumer preference Analysis Malt barley after being processed into malt is value added into their beer and other alcoholic drinks and also into health products and infant or child foods like health drinks (bournvita, boost etc.) Brand equity is important in the market segment. Malt barley is used in Cereals, Baked foods, Biscuits and chocolate based foods etc. Feed barley has application in terms of cattle feed and brand equity is not critical factor. Typically, malt barley products have higher price realisation than feed barley.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 48

Chapter 7- Existing Institutional support and Infrastructure facility

7.1. Support at cultivation stage A range of support institutions support value chain activities as described below. 7.1.1. Department of Agriculture, Govt. of Rajasthan: The department has various verticals through which it supports production, productivity and market linkage in the state. It has a well established structure and network of State/District and panchayat level officials to provide extension services to farmers. The department issues licenses to various agri-input marketing companies including seeds, fertilizers and insecticides and ensures quality assurance to farmers through regular reporting from suppliers and random quality checks of agri inputs. The licenses are issued first at the State level by registering input/service providers. The registered companies can only supply inputs to district and regional level distributors who in turn make availability of the products at the retailors. All handlers of agri inputs and produce have to take license from competent authority either at district or state level. Similarly, thee department also issues mandi licenses for traders at different APMCs for trading in specific commodities. The same are described below. A. Extension vertical:  Extension support: The extension wing recommends good agricultural practices for various crops as per various agro-economic zones, Promotes seed replacement through distribution of Minikits containing improved variety of seeds. It also provides grant support of upto 50 percent of the price of notified varieties of barley of less than 10 years or Rs 1500 per quin whichever is less. For hybrid varieties subsidy is - 50% of the price of seeds notified for less than 10 years or Rs 5000 per quin whichever is less. The department also provides upto 50% subsidy on micro-nutrient (50% of total cost or upto Rs 500/ha) and bio-fertilizer application (50% of total cost or Rs 300/ha) under various schemes viz. National Agriculture Development Scheme/ National Composite Safety Mission/ National Food Security Mission. The application can be submitted to the office of Agriculture Supervisor-Asst. Agriculture Officer/ Asst. Director (Extn.)/ Dy. Director (Extension) by eligible farmers at Panchayat/Sub-district and District level respectively. Under the head “Subsidy on Crop Demonstrations”, subsidy upto Rs 5000/ha is available for barley cultivation through flagship programs like State Plan/NFSM.  District level farmer help desk: Under this head, farmer help line are established at district level with nomitated district level officials from the office of Dy. Director, Agriculture

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 49

Extension to support farmers on various farming related problems. Apart from this, a state level help desk is also maintained whose telephone no is 0141-5102578  Agriculture information dissemination: At the state level, , technical dissemination is being done through the daily newspapers, agricultural papers, monthly publication of "Kheti Ri Bataan" bulletin is also being done. Apart from this, information about advanced agricultural methods of major crops during crop season, publishing posters, agricultural guides on various topics, and Rabi / Kharif package of practice books at the block level and farmers, people's representatives and farmers by producing farmer friendly literature. Is being distributed to the institutions related to. From day-to-day basis to all the radio stations of the state, from 7.45 to 8.15, share the information related to farming and phone in these programs is being broadcast on Tuesday, Thursday and Saturday. The program is being sponsored by the Department of Agriculture on Monday, Tuesday and Wednesday for three days a week. "Farming" program on Doordarshan- produced by the Agriculture Department, is broadcast from Doordarshan Kendra, Jaipur on every Thursday from 7.30 am to 8.00 pm. In this program, information about departmental schemes / programs being executed by the Agriculture Department, discussions with experts, problem-solving, confusion-solving, fortnightly work, message, success stories, innovation, short films, eclipse etc. The tax program is made simple, interesting and farm-making. The technical information on agriculture and related subjects to the farmers has been done by the Indian government to provide "Kisan Call Center" in the state through telephone. Farmers can get any kind of information related to farming by making free calls to phone number 1800 180 1551/1551, from basic / mobile telephone to 6.00 pm to 10.00 pm.  Water use efficiency promotion: Under the Farm Pond Program, rain water harvesting is promoted with the provisioning of 50% subsidy or maximum amount of Rs 52,000/- on raw farm pond and Rs 75,000/- on farm pond with plastic lining whichever is less. This scheme is available under the Rashtriya Krishi Vikas Yojana. For Dighi construction (under National Agriculture Development Scheme/RKVY), 50% of the unit cost or 350 / - per cubic meter filling capacity and 50% of the cost of the unit cost, on the construction of plastic lining (raw) diggings, by constructing a minimum of 4.00 lakh liters of Filler capacity and more than 50% of the unit cost. The amount of rupees 100 / - per cubic meter will be filled up or maximum Rs 2.00 lakh, whichever is less the grant will be payable. For Water Houze construction under the national Agriculture Development Scheme, support is provided for areas where deep water is used for irrigation. For constructing a minimum of one lakh liters of Fill Capacity water shed Houz for all categories of farmers, 50 percent of the unit cost or Rs. 350 / - per cubic meter fill capacity or maximum Rs. 75000 / - whichever is less is the subsidy element. Under the irrigation pipeline head (of National Agricultural Development Plan, National Food Security Mission, NMOP) water use efficiency is promoted for irrigation water. Under this scheme, PVC / HDPE of prescribed size for carrying water from source to farm on irrigation pipeline is supported. On the purchase of pipes, the farmers of all categories are given 50 percent of the cost or maximum amount Rs. 50 / - per meter on HDPE pipes or Rs. 35 / - per meter on PVC pipe or Rs. The maximum amount of Rs.15000 / - on the 20 / - per meter HDPE laminated le-flat tub pipe will be payable, whichever is less proportionate.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 50

Under the Fountain Irrigation program through National Food Security Mission; Pulses and Wheat - Under the Fountain Irrigation Program, subsidy is 50% or the amount is Rs. 10000 / - per ha, whichever is less. Under the Mobile Raingun support program, for irrigation of grains and pulses crops, subsidy of 50 percent of the cost under the Mobile Renganization program or Rs.15000 / - per unit whichever is less, grant is payable. This subsidy is available under the NFSM scheme  Agricultural equipment grant distribution program: Grants upto 40 to 50 per cent are given as per the category of farmers on the purchase of approved agricultural machinery viz. Seed cum Fertilizer Drill, Plow, Threser etc.  Gypsum distribution program: 50% Subsidy is given to farmers on districtwise rate of Gypsum for maximum area of 2 hectare. This support is for soil reclamation of alkali soils.  Plant protection inputs: Segment, viz. Plant Protection Chemicals / Bio Agents / Bio Pesticides / Pheromone Trap / Liyos Distribution, including weeds in crops; 50% of the price or Rs. 500 any less per hectare is payable as subsidy.  Plan Protection equipments segment: Human transport * (napsek, foot sprayer, duster etc.) are given 40-50 percent of the cost or maximum 600-800 / - Per device as subsidy. Under Power Drivesegment * (Nepasek Power Sprayer) are given 50-60 percent of the price or maximum 3000-3800 / - Per device. For tractor mounted sprayers, 50% of the price or Rs 10,000 per device is subsidized. These schemes are as per targets allotted for respective districts.  Assistance for area specific integrated farming systems like livestock based, horticulture based and tree based farming systems: Assistance is provided for farmers of selected village/cluster having land from 0.25 to 2 ha area per farmer. It is implemented on cluster basis with 100 ha of land. Subsidy applicable is: 50% of cost or 52500/-for farm pond, 50% of cost or 468/-per SQM for green house, 50% of cost or 30/- per SQM for low tunnel, 40% of cost or 800/-per colony for bee keeping, 50% of cost or 15000/-for diesel pump, 50% of cost or 50000/-for vermicompost unit Pucca @ 125/ per cubic ft, 50% of cost or 8000/-for HDPE vermi bed  Organic production: Organic Barley also has a great potential. For support under the head, Promotion of Organic Farming, subsidies are available for heads like Conversion of land Cropping systems and organic seeds, traditional organic input production unit, botanical extracts production unit, use of phosphate rich organic manure, construction of vermicompost pit, use of liquid bio fertilizer and support for packing labelling and branding material support are subsidized for consecutive two years at a rate specified in the manual.  Prime-minister Crop insurance scheme: Farmer have to pay 2% of insured amount in Kharif, 1.5% of insured amount in Rabi and 5% of insured amount in horticulture & commercial crops, subject to maximum of 7 hectare per farmer. Rest of the premium amount will be borne by central and state government in equal ratio. Beyond 7 hectare, farmer has to pay whole premium amount, i.e. without any subsidy.  Soil health card: Under this, component, district level soil and water testing labs support farmers on soil testing and providing soil health card for integrated nutrient management. B. Rajasthan State Seed Production and Certification agency helps in ensuring production of certified seeds for farmers. The department is mandated to; Recognize varieties eligible for Seed

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 51

Certification and annually publish lists indicating the names of such varieties, Maintain a list of sources of Breeder & Foundation seeds approved by the Central Seed Certification Board, Outline the procedure for submission of application for growing, harvesting, processing, labelling and tagging of seeds intended for certification, Undertake inspection of seed fields, seed processing plants and lots in accordance with the procedures outlined by the Central Seed Certification Board in accordance with Indian minimum seed certification standard (IMSCS), Regulate the processing of seeds at seed processing units and Ensure that the seeds certified by it conforms to the standards prescribed by the Central Seed Certification Board. Thus the department ensures availability of quality seeds for growers. C. Rajasthan State Seeds Corporation helps availability of quality seeds at affordable prices through the cooperative network and private distributorship channel under the trade name “Raj Seeds”. During Rabi and Kharif seasons Rajseeds are made available at the door steps of the farmers through Beej raths operating at almost every panchayat samitee of the state. The department sold around 6520 quintals of barley seeds in rabi 2016-17. D. Rajasthan Kisan aayog (Rajasthan State farmer Commission): It is mandated to Investigate and review of agriculture and allied sectors, keeping in mind the economic ecology and environment for sustainable development of agriculture and To inform the State Government for taking necessary measures to solve timely problems of agriculture, animal husbandry and fisheries, so that farmers can be protected against difficult situations, Talk to different farming organizations / associations to make the government aware of their demands and suggestions and To bring the difference in demand and supply to the attention of the State Government, so that its adverse effects are not on the peasantry. E. State Agricultural Management institute (SIAM), Durgapura Jaipur: The institute is mandated to organize training programmes on functional areas of Agriculture and its allied sector namely; Induction courses on fresh recruitees, Refresher courses for in service officials , Crop production technologies, Management of Technology and Input, Irrigation Management, Dry land Farming, Crop Economics, Extension technique, Communication skills, National Workshop / Seminars etc. F. Agricultural Conservation Testing Centers (ATCs): The department of Agriculture has ten ATCs who are mandated to find out the usefulness of the research recommendations received from the agricultural research centers under the agricultural universities of the state in various agricultural and regional conditions and local conditions and to amend the tests in the research recommendations according to local conditions. On the basis of the tests, preparations of agricultural climatic package of practice and amendment of the advanced agricultural methods are amended. Apart from this, the agri-certified testing centres also solve the technical problems in the day-to-day work of the extension workers. 7.1.2. ICAR and allied institutions: The Indian Council of Agricultural Research (ICAR) is an autonomous organisation under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, Government of India. The Council is the apex body for co-ordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country. With 101 ICAR institutes and 71 agricultural universities spread across the country this is one of the largest national agricultural systems in the world. The ICAR has played a pioneering role in ushering Green Revolution and subsequent developments in agriculture in India through its research and technology development that has enabled the country to increase the

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 52

production of food grains by 5 times, horticultural crops by 9.5 times, fish by 12.5 times , milk 7.8 times and eggs 39 times since 1951 to 2014, thus making a visible impact on the national food and nutritional security. It has played a major role in promoting excellence in higher education in agriculture. It is engaged in cutting edge areas of science and technology development and its scientists are internationally acknowledged in their fields. State Agriculture Universities (SAUs): The state four major Agriculture Universities namely; 1. Swami Keshwanand Rajasthan Agricultural University, Bikaner, 2. Maharana Pratap University of Agriculture and Technology, Udaipur, 3. Sri Karan Narendra Agriculture University, Jobner, 4. Agriculture University, Kota and affiliated colleges who contribute to research, education, training and knowledge dissemination on agriculture technology. The Agriculture Universities also provide research and extension support through attached Krishi Vigyan Kendras and Agriculture Research Stations. Following are the varieties of Barley developed by various Agriculture Universities in Rajasthan.

Name of university Variety of seeds developed No of seed varieties developed

SKRAU Bikaner RD 2552, RD 2503, RD 2508, RD 2035, RD 2052, RD 2592, RD 2624, RD 10 2660, RD 2668, RD 2715

SKNAU, Jobnear First dwarf mutant variety RDB-1 in the country, salinity tolerant BL-2 28 (Through ARS, and CCN resistant 'Rajkiran' along with recently developed high yielding Durgapura Jaipur) varieties RD 2035, RD 2552 having wide adaptability and suitability for saline conditions, RD 2503 and RD 2668 (Two rowed type) for malting purpose. Varieties RD 2624 and RD 2660 developed for rainfed conditions are fabulous contributions of this institute. Recently, an excellent contribution of the institute is the development of country's first dual purpose barley variety RD 2715 having good potential to produce grain as well as green fodder. In August, 2012, RD 2786 (IR-TS) and RD 2794 (Salinity tolerance) were identified having good yield potential and rust resistant

Krishi Vigyan Kendras; The State has 42 Krishi Vigyan Kendras affiliated through ICAR. The mandate of the KVKs is to: 1. Organize Frontline Demonstrations (FLDs) to establish production potential of various crops and enterprises on farmers field (Facilitete technology dissemination from Lab to field) 2. To conduct on farm testing to identify the location specificity of agricultural techniques under various farming systems, 3. Organize need based training to farmers on agri and allied activities, 4. Production and supply of good quality seeds and planting materials and various farming products to the farming community and 5. Work as resource center of agricultural technology for supporting initiatives of private, public and voluntary sector for improving agricultural economy of the district. The KVKs also offer soil testing facilities to farmers. Agriculture Research Stations: Apart from the above, there are several agriculture research stations and sub-stations attached to the universities to undertake research/trial and demonstration of agriculture technologies.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 53

22Indian Institute of wheat and barley research, Karnal: The institute has thirty one funded centres, located in different SAUs, support multidisciplinary research on wheat and barley 1 2 Indian Council of Agricultural Research under the coordinated project. Besides the funded centres, more than hundred voluntary centres in SAUs are actively engaged in evaluation of genotypes. In addition, some testing sites are also provided by State Agriculture Departments and a few NGOs. These locations have been identified in such a way that distinct agro-climatic zones of the country (six mega zones under wheat cultivation are represented. The barley component of AICW&BIP functions at seven funded centres with voluntary participation by some ICAR institutes and SAUs. So far, 92 varieties have been released for commercial cultivation and 15 genetic stocks registered with the NBPGR. The priority areas of research include development of barley for malt, feed and dual purpose. Traditionally, tall plant types were common in barley. The barley network programme successfully developed semi-dwarf, management responsive, lodging resistant cultivars with erect leaves, compact plant having thick stem and stiff straw. Varieties like BH 902, DWRUB 52, RD 2668, RD 2592, NDB 1173 and DWRB 73 are some examples for such plant type in malt and feed barley. Stripe rust and leaf blight are the major diseases of barley, although yellow and brown rust in NWPZ and brown rust and leaf spot are of importance in NEPZ. New high yielding varieties have resistance to such diseases. Resistance to CCN has been incorporated in some new cultivars. Varieties having good malting/ brewing qualities comparable to European malt barley cultivars have been developed. The recently released varieties DWRUB 52 and DWRB 73 (developed through hybridization of 2 row x 6 row types) hold promise as industrial barley with better yield, resistance and maturity duration as compared to earlier releases. Six row malt barley variety DWR UB 64 was the first one released for malt purpose. 7.1.3. Credit facilities: Agricultural credit facilities in the state has both formal and informal sources. Under the formal sources, various banks are extending credit facility at subsidized interest rates under KCC schemes for farmers having land title. The Gram Seva Sahakari Samitis run by Cooperative Department also extends crop loans to farmers. However, as many farmers live in hindu-undivided families, i.e. land title is still with father and sons undertake farming in their share of land as mutually agreed in the village panchayat. In such cases, getting a formal source of crop loan is difficult. Hence many farmers resort to informal sources of loans from village level money lenders at exorbitant rates and exploit them later by forcing to supply the produce also through the money lenders. 7.1.5. Agri input availability: A number of input service providers (in seeds, fertilisers and pesticides) operate in the important barley producing clusters of Pisangan, Bansur, Deoli and Sangod. They are registered through the office of Dy. Director, Agriculture Extn. Of respective districts.

7.2. Support at post-harvest stage Following are the major support institutions for post-harvest handling of agriculture produce in the state. A. Department of Agriculture marketing (DAM): The department offers upto 50% subsidy on various sorting/grading machines as specified in the circular dated 19/07/2017. B. Post-harvest storage: Department of Agriculture provides subsidy for metal storage bins to farmers. Apart from this, following storage infrastructure is available in the state.

22 http://www.icar.org.in/Vision%202050%20IIWBR%20Karnal.pdf

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 54

 Rural Godowns: There are 139 rural godowns in Rajasthan which stores mustard, gram, wheat, Bajra, gaur, soybean, groundnut etc. The list of godowns in Rajasthan that store barley is attached in Annexure-5  Central Warehousing Corporation23: The Central Warehousing Corporation (CWC) is the largest public sector warehouse operator with their godowns established in almost all the states of the country. At present, CWC have already established and operating more than 450 warehouses with a capacity of 93.25 lakh tonnes (as on 29/02/2004). These are scientifically constructed warehouses which facilitate the farmers to store their produce safely and to derive the benefit of pledge finance during the period of glut situation in the markets. (Annexure - 2 List out CWCs in Rajasthan)  State Warehousing Corporation State Warehousing Corporations (SWCs) were established in different states under the purview of concerned state governments and constructed godowns at distant places. The total share capital of SWCs is contributed equally by CWC and concerned state governments and SWCs under dual control. The SWCs also provide storage facilities for green gram. (Annexure – 3 Lists of SWCs in Rajasthan).

C. Market information through Agmarknet: The Directorate of Marketing and Inspection (DMI), an attached Office of the Department of Agriculture, Cooperation and Farmers Welfare under Ministry of Agriculture & Farmers Welfare, was set up in the year 1935 to implement the agricultural marketing policies and programmes for the integrated development of marketing of agricultural and other allied produce in the country with a view to safeguard the interests of farmers as well as the consumers. It maintains a close liaison between the Central and the State Governments. The Directorate is headed by Agriculture Marketing Adviser to Government of India and has its Head Office at Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra) and 11 Regional Offices at Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Chandigarh, Jaipur, Lucknow, Bhopal, Kochi and Guwahati and the Central Agmark Laboratory at Nagpur24 D. Support on agri produce marketing through APMCs: The state has 136 Krishi upaz mandi samitis (KUMS) and 310 market sub yards for trade of agriculture commodities. Among them, grain mandis in Jaipur, Ganganagar, Kota, Bikaner, Hanumangarh, Alwar and Sikar are major grain mandis in the state as far as Barley is concerned. These APMCs are intended to be responsible for:  Ensuring transparency in pricing system and transactions taking place in market area;  Providing market-led extension services to farmers;  Ensuring payment for agricultural produce sold by farmers on the same day;  Promoting agricultural processing including activities for value addition in agricultural produce;  Publicizing data on arrivals and rates of agricultural produce brought into the market area for sale; and setup and promote public private partnership in the management of agricultural markets

23Farmers’ portal, CWC Link (http://farmer.gov.in/CWC_Link.aspx) (retrieved on April 9,2017) 24 Agmarknet (http://agmarknet.gov.in/) (retrieved on April 9,2017)

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 55

E. Support on post-harvest value addition: The Farm Gate Agro processing and Agri- marketing scheme of Govt. of Rajasthan has provisioning for subsidy upto Rs 20 lakh for a sorting/grading/ value addition project of Rs 50 lakh. Ministry of Food Processing, Govt. of India also has a scheme in the name of Kisan Sampada (Backward & forward linkage scheme) through which there is a provisioning of 35% subsidy for Farmers/Farmer Groups for establishing value addition facility for agri produce.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 56

Chapter 8- Gap & Constraint Analysis

8.1. As Perceived by Producers and Other Stakeholders Producer case illustration

Phool Chand Meena is a farmer in Samlopur (Pratapgarh) with about 1.6 ha of land holding. About 1.4 ha is deployed to Barley. The variety opted is Oswal. The gross yield is 40 quintals per ha. The market rate of the sale is about Rs. 1200 per quintal or Rs. 48,000 per ha. The cost of cultivation is about Rs.33500 per ha. Net realization is about Rs. 14250 per ha. Out of total cost of cultivation per ha, about Rs. 10000 is cost of land preparation, seed cost is about Rs. 4500, fertilizer and pesticide cost is about Rs. 7750, weeding related (labour cost) is about Rs. 4500 and harvesting cost is about Rs. 3000 and threshing cost is about Rs. 2500. Packing cost is about Rs. 1000per ha. Transportation cost to mandi is about Rs. 250 per ha- all totalling around Rs. 33500 per ha. The fluctuation in prices of Barley is between Rs. 1100- Rs. 1300 in a year per quintal. The range of yield is 20 quintal to 50 quintal per ha in a year.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 57

Processor case illustration The Harodi region comprising 4 district had traditionally been a barley producing region. However, over the years many farmers have shifted to wheat cultivation as apparently given present levels of barley yield per acre, the farmers earn 300 – 400 rupees come per acre of wheat than from barley. The relatively lower net surplus from barley cultivation is because farmers largely use seeds to produce feed stock barley even for supply to distilleries and yield is barely 1.5 – 2 T per acre. There are basically 3 different varieties of barley that may be cultivated. These include feed, food and malt varieties respectively. There is need to diversify to higher yield yielding malt varieties. This diversification into barley and higher yield yielding malt varieties could apparently increase production from average of barely 1.5 T per acre to even 2.5 T per acre. Large firms like Soufflet can contribute in this regard. Soufflet is into global sourcing of barley (threshed and cleansed) from different areas of the world. The firm has a processing plant in Alwar Modern Industrial Area. It has a large warehouse in the Kota region. The firm sources some 2.2 MMT per annum of Barley from across the world. It sources from India where the harvesting period is February and March while it also sources from Argentina (harvesting time being January) and from other countries like France and Kazakhstan where February is sowing time. Soufflet is sourcing 20, 000 MT barley from India per annum. This is targeted to be increased to at least 100,000 tonnes per annum. Barley requires watering of up to 2-3 times unlike wheat 6 – 7 times before harvesting hence it is less water intensive. The firm is also encouraging cultivation in countries like Ethiopia (whose population also consumes barley as food).

Figure 8:Consultation with MNCs and Value Chain Leaders

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 58

8.2. SWOT Analysis of the Value Chain of Barley

Strength Weakness

 Demand of malting varieties of barley growing  Barley is not a major cereal crop as compared to steadily due to presence of multinational malting wheat and brewing industries around Rajasthan  Most of the barley production in Rajasthan is  Barley has a variety of usage including barley using local varieties for animal feed and hence flour and various snacks used using its flour and productivity is less. for making porridge.  The local varieties are not suitable for malting  Barley ranks as the major crop world wide and hence have lesser economic significance.  Barley is largely for animal feed and it is as food  Farmers do not follow recommended package crop growing demand and practices  USA is the leading producing country followed  Farmers are not organized for barley production by Argentina, Brazil, and Ukraine and marketing  A.P, Karnataka, Bihar, Maharashtra, and  Improper post-harvest management resulting in Rajasthan are important producers high content of damaged/un-matured grains and  Rajasthan is one of the leading producers of presence of foreign materials Barley in India.  No alternate marketing channel developed for  Less water intensive crop Barley to facilitate crop diversification.  It has a high fodder value like wheat  Inadequate links with farmers for direct procurement.  Inadequate capacity building programs on Market led extension services.  Cumbersome norms for contract farming keeping large buyers away from direct reach of farmers Opportunities Threat  Most of the crop economic potential lies with  Option for crop diversification in rain-fed areas. procurement linked to malting/brewing industry  Growing demand for malt barley and presence  Farmers fear of quality rejection by industry of processing players in the state itself.  Natural calamity may impact production and  Good processing opportunities for Barley- hence productivity and profitability. Barley Feed, Barley Biscuits, Barley Flour.  Farmers’ dependence might increase on  Development of alternate marketing channel for external source of seed suppliers in case of malt barley procurement is possible. barley and hence increase in cost of cultivation  Scope for tie up of FPCs through FCSC with  Fluctuation (delay) in sowing due to climate firms like Soufflet change  Scope for facilitation of start-ups from amongst  Cloudy weather, rainfall at the time of flowering FPCs or individual entrepreneurs, in secondary and seed formation (Adverse weather processing of value added products of barley conditions) like flour, snacks, animal feed, roasted barley,  Infestation of insect-pest & other disease etc.  Taxation related policies (for example – proposed 5% GST on branded goods), etc. affects the price levels and buying patterns of consumers.  Adulteration Malpractices by competitors to get price advantage

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 59

8.3. Key constraints in Barley crop: The constraints observed under barley are divided under from different categories, viz Production related constraints, Post-Harvest related constraints and Processing and market infrastructure related constraints.

8.3.1. Production related constraints: Barley occupies comparatively less area under cultivation with respect to Wheat. It is constantly grown in the area and production as well as productivity also due to irrigation facility. It is generally cultivated as feed Barley in the cluster. 8.3.2. Post-Harvest related constraints: Barley is mostly cultivated six rows as feed Barley whose seed size is small. .There is lack of Primary processing facility except sun drying in Barley at farm level. 8.3.3. Processing and market infrastructure related constraints: Processing of barley involves high end technology and hence is out of reach of farmers/farmer institutions. However, with the direct involvement of companies like Soufflet, Farmers can sell their produce directly to Soufflet with a higher margin after primary sorting grading. Currently there is lack of primary sorting and grading infrastructure at community level forcing farmers to sell semi- graded produce to traders who later on sell it at a higher margin after doing sorting, grading and cleaning. Lack of market intelligence services: Farmers do not receive information on market prices. Some farmers sell crops through village level traders, because due to which they are not realising fair price. Lack of primary processing infrastructure: i. There is a non-availability of facilities for primary processing: cleaning, grading & sorting at the farm level. ii. There is no practice and provision of producer level storage. iii. There is acute lack of awareness among farmers regarding FAQ (Fair Average Quality) standards. iv. Farmers do not practice the usage of basic equipment like moisture meter and weighing machine. Distant markets: Due to the distance of APMC from farmers field, they resort to sell the produce to traders at non-competitive prices. Seasonal price variations: Generally during harvesting period, prices are on lower side and reach highest after 5-6 months of harvesting. However, farmers do not have any option but sell immediately at lower prices as they need cash to meet out their expenses. They could realize higher price if they can hold the stock for 2-3 months. Malpractices in markets: Many malpractices prevail in the markets of Barley i.e. excess weighment, delay in payment, high commission charges, delay in weighing and auction, different kinds of arbitrary deductions for religious and charitable purposes etc. Infrastructure facilities: Due to inadequate infrastructural facilities available with the producers, traders, millers and at market level, the marketing efficiency is affected adversely. Agribusiness policy related constraints:

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 60

Contract farming: Rajasthan has adopted a model APMC Act, 2007. In Rajasthan Contract farming of desired variety and quantity as per buyer’s/processor’s need, has been allowed. Buyer/processors may supply inputs and technical know-how and farmers may produce the crop for sale to buyers at an agreed price. However, this price shall not be lower than minimum support price and title of land shall remain with farmer. Produce will be purchased at buyer/processor’s business/factory place. But processors found less interested in registering under contract farming. Team ABPF discussed contract farming issues with some of the processors and related challenges are given below: i. Rule 5 – Each agreement shall be written on stamp paper of the value of Rs.100. This increases cost of procurement and procurement time. ii. Rule 9 – Separate registration form shall be filled for each agreement. Large amount of paper work can be reduced by group registrations or procurement directly from FPCs. iii. Rule 17-In case the contract farming buyer fails or refuses to purchase the agreed quantity of the agriculture produce from the contract farming producer, he is to pay the amount of the difference between the agreed price and the actual sale price of the contracted produce in the market committee concerned to the producer. Mutual termination of contract should be allowed. iv. Rule 19 – The contract farming buyer need furnish an undertaking equal to 20% of the value of the contracted amount. This amount can be reduced and this will motivate big players to participate in contract farming.

8.4. PIESTEC Framework Barley can be summarily considered within the adapted PIESTEC framework as follows:

8.4.1. Political circumstance Due to land ceiling norms, typically farmers in Rajasthan have barely 2-3 acres of holdings each. The small and marginal farmers can hardly be expected to invest in better farming technologies, nor aggregate adequate volumes of commodities as to develop alternate marketing channels away from typical APMC or multiple-trader led channel in vogue. There is, therefore, need for aggregation of such farmers into FPOs / FPCs. Typically, such FPOs / FPCs may have a combined holding of 1000-1500 acres.

8.4.2. Institutional context The globally preferred high income yielding variety of barley is malt barley. Given the fluctuations in prices as well as need for technology transfer for high yielding varieties, there is apparently need for contact farming agreements with processors. However, there are some limitations in the Contract Farming Act and mechanism in Rajasthan. The limitations are discussed in 5.3.2. These limitations need to be corrected to encourage and up-scale contract farming practices.

8.4.3. Economics There is sound economics in malt barley production with contract farming agreements. At present, farmers are growing feed barley which is not suitable for malt processing. There is presently no mechanism as such for tracing produce to their producers, but for a few exceptions. Malt being a high value product, needs traceability to ensure quality. In the case of barley presently, the gross yield per acre is 16 quintals. The market rate of sale is about Rs. 1200 per quintal. This implies a

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 61

gross yield of about Rs. 19,200 per acre per harvest. Assuming the cost of cultivation at Rs. 13,100 per acre, the net yield or income is pegged at Rs. 6,100 per acre. Firms like Soufflet supplies seeds and transfers GAP which could enable increase in yield to even 25 quintals per acre or increasing gross yield income to even Rs. 30, 000 per acre. In comparison, in the case of wheat cultivation, the yield is presently 18 quintals which is sold @ of even Rs. 1400 per quintal yielding a gross income of Rs. 25,000 per acre. Basically, crop diversification into high yielding malt varieties could apparently increase production from an average of barely 15-16 quintals per acre to even 25-26 quintals per acre and hence call for intensifying cultivation of such variety as a less water intensive and higher farmer income yielding crop. In fact, the Soufflet intervention with about 3,500 farmers in the region has already demonstrated increase in net value accruals to contacted farmers/producers by over 15-30%.

8.4.4. Social Typically, the small and marginal farmers in Rajasthan go in for wheat than barley. Barley consumption has apparently a range of health benefits by way of regulation of blood sugar and reducing cholesterol levels in blood. Barley is more tolerant of soil salinity than Wheat, has a short growing season and is also relatively drought tolerant. Malt barley can be cultivated as a Rabi season crop with maize as the kharif season crop. The fluctuations in market prices and relatively higher prices for wheat have discouraged intensification of cultivation of barley. However, there is scope for this crop which is less water intensive to be propagated.

8.3.5. Technology Other than seeds, GAP plays an important role in enhancing farm productivity in the farming of barley. These practices are typically transferred by large processors to farmers across the globe in the case of barley. Quality high yielding seeds as well as GAP could together enhance productivity and yield as to increase yield per acre from 1.5 -1.6 Tonnes to even 2.5 – 2.6 Tonnes.

8.3.6. Environment The scope for promoting barley as an alternative crop to wheat is an environmental friendly option. This is because the water-use irrigation footprint is far lower. Barley requires 2-3 waterings over cultivation while wheat requires 6-7 waterings. Sowing normally takes place in North India as a Rabi crop with sowing between October and December. Harvesting is from March to April.

8.3.7. Competition Malt barley after being processed into malt is value added into beer and other alcoholic drinks and also into health products and infant or child foods like health drinks. Malt barley is also used in cereals, baked foods, biscuits etc. Typically malt barley products have higher price realisation than feed barley. There are also a range of value added products that can be made from barley. These include barley flour, barley flakes other than malt barley. In Rajasthan, typically competition to barley is from wheat in that price yield from traditional barley cultivation is lower than that of wheat affecting crop diversification into this less water intensive crop.

The large beer producing companies are major buyers of malt barley varieties. These include SAB miller, Heineken, and Carlsberg. Soufflet produces malt. These players have processing facilities in Rajasthan. Barley’s advantage is that it is a low input crop and can be grown in marginal lands and barley can be grown for use as animal feed, human consumption or for malting. India has comparative advantage in barley production particularly due to global production season related variation. In India the harvesting period is February- March to even April while in Argentina

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 62

harvesting time is in January. In France and Kazakhstan February is sowing time. That is why companies like Soufflet are into global sowing of inputs to optimize their own procurement costs and ensure yearlong capacity utilization. Out of Soufflet’s global procurement of about 2.2 million tonnes about 100,000 is to be sowed out of India and particularly Rajasthan. Depending on seasonality, barley is procured from different locations across the world by value chain leaders. India and Rajasthan in particular, has comparative advantage in barley production during the Rabi season.

8.5. Impact of GST over barley value chain: The Goods and Services Tax is one indirect tax for the whole nation. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. It will be levied at every stage of the product distribution chain by giving the benefit of Input Tax Credit (ITC) of the tax remitted in the previous stages. Therefore, the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all previous stages. GST will replace all Central level taxes such as excise, service tax, custom duty as well as state level taxes like VAT, CST, entertainment tax among others.

Table 24: Tax Structure

Transaction New Regime Old Regime Remarks VAT+ Central Revenue will be shared equally between Sale within the state CGST+SGST Excise/Service tax the Centre and the State There will only be one type of tax Central Sales Tax (central) in case of inter-state sales. The Sale to another state IGST + Excise/Service Center will then share the IGST revenue Tax based on the destination of goods. The impact on the Food Processing Businesses:  With the latest information suggesting that the minimum GST rates will be 18% on all products.  Implementation of the GST is said to increase the prices of agricultural goods. However, the products will be able to reach the consumer faster due to state-level taxes such as Octroi and entry taxes which will significantly reduce the time and hassle of transporting goods across state borders.  GST will also favour the National Agricultural Market on merging all the different taxation on agricultural goods will improve the marketing and virtual market growth.  Because GST is a consumption tax, it will be levied only when food products are sold by the manufacturer and not when they are manufactured.  The Confederation of Indian Industries (CII) has also in its representation called for a zero rate tax on products which have a rate of up to Rs. 10/- and Rs. 20/-. It also demanded that all packaged material used as inputs by the food processing industry should have a zero- percent rate.

Impact on Restaurants and Food Joints: Service tax liability with the credit of input VAT on goods consumed will get submerged into GST and irrespective of goods and services, the credit of input will be available for adjustment against the output liability. This will further optimize the working capital of these restaurants and consumers can expect the superior quality of goods and services. Please refer to Annexure 6 for product wise GST rates of Food Products.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 63

Chapter 9- Proposed Intervention and Investments

9.1. Intervention areas for Value chain strengthening/restructuring The intervention plan of Barley may be broadly considered in the context of activities and stakeholders as follows.

Stakeholder wise roles, responsibilities, pre-intervention constraints and post intervention actions:

Stake Roles and Pre-intervention Post intervention S.No Action By holder responsibilities constraints action Farmer  Land  Awareness Preparation campaigns for  Around 65% farmers  Cultivation of motivating farmers use local variety of crops to use seeds from last  Harvesting of recommended PoP RACP in season from their crops on soil testing, land partnership field resulting in low preparation, line with ATC  Sell the raw yield produce sowing, INM, IPM and local  Farmers do not and seed rate NGO follow recommended  Crop PoP demonstrations for

use of seeds suitable for malting  Facilitating  RACP, 1 formation of FPC ABPF,  Pooled purchase of NGO for agri inputs through FPC  High cost of FPC at bulk price formation insecticides and onward sale to and  Non availablity of member farmers at further nutrient wholesale price operation. management keeping minimum  RACP to solutions at right operating margins tieup with time/ High cost of  Tieup of FPC with ATC for transportation as ATC for supporting farmer takes in loose multiplication of technolog quantity foundation seed y transfer produced by of seed research multiplicati institutions through on through

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 64

Stake Roles and Pre-intervention Post intervention S.No Action By holder responsibilities constraints action member farmers of FPC FPC and onward members sale of improved variety seed at a lower cost  High moisture RACP to content of harvested provision for  Subsidized crop the same distribution of  Chances of fungal and facilitate tarpaulin sheets infection during sun distribution  Promotion of good drying on open field to FPC harvesting  Chances of members practices contamination with with support

foreign materials viz. from local dust, other seeds NGO Ensure availability of High dirt content community cleaning /foreign material in RACP, SPs & Grading facility to harvested grain with input farmers through (Usually resulting in from ABPF FCSC established 10% lower income team and maintained by arrival to farmer) FPC Lack of market Price discovery information related to through NCDEX, ABPF, FPC price eNAM. Farmers resort to Pledge financing immediate sale due to through FPC/FCSC, ABPF, FPC immediate Spot/future trading requirement of cash through e-platforms During bumper RACP, SPs harvest, prices Storage facility for with input collapse and hence farmers as part of from ABPF storage option could FCSC team help and distress sale. Processors  Process the Limited adoption of Large Setting up alternate raw produce direct procurement Processor/ channel to sell  Value and contract farming Buyer and directly from PC to addition Limited processed ABPF, processor or large product available in RACP, FPC,  Packaging of retail shops. value added the market which limits RSAMB product the marketing potential Awareness seminars ABPF, of the commodity for processors RACP, FPC Many existing 2 processors and budding entrepreneurs are not aware of schemes of the GoI Policy conference, ABPF Including CLCSS, investors meet cluster Development scheme or “Sampada” for technology upgrading. NGOs  Extension  Lack of skilled  Training of NGO RACP/ 3 services to personnel field staff on ABPF

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 65

Stake Roles and Pre-intervention Post intervention S.No Action By holder responsibilities constraints action farmers  Poor field-farm level market led  Disseminate coordination extension services RACP  Outdated extension  Business planning Schemes to activities training the farm level  Lower level of  Monthly/Fortnightly  Distribution of interaction and review meetings seeds and adoption of with RACP farm kits as RACP/govt.  Feedback of per various schemes farmers from schemes service area  Hand holding  Exposure visits of support to the NGO staff to farmers successful FPCs regarding RACP  Establish the  Create basic feasibility of understanding sustainably among the RACP increasing PMU staff about agricultural concepts of FPC productivity  Lack of clarity on  Clear and farmer the form of FPO- understanding on income Cooperative or FPC fundamental  Integrate among field staff differences agriculture  Selections of between FPC & water capable leaders for Cooperative management the proposed FPO  Create market and  Low level of linkages by  ABPF agricultural awareness among bringing more big  RACP 4 technology, the PMU staff and players and PMU Line  Establish farmers regarding processors to the staff farmer the concept of FPC cluster  NGO organizations  Poor or no Market  Conduct training of (FPCs) and linkages of the the potential market value chain crops in farmer leaders innovations in clusters about FPC and its selected  Lack of active NGO functioning locations staff deployed in the  Capacity building cluster training of the NGO staff regarding the extension services to be provided to the farmers

Following would be the roles and responsibility of various stake holders in the value chain. In the production stage, RACP will facilitate partnership with nearby ATC for technology demonstrations, seed propagation, training of farmers on improved PoP and technology transfer for multiplication of foundation seeds through FPC members. RACP would facilitate financing for FPC formation, ABPF to facilitate with policy and process guidelines for FPC formation and establishing FCSC, local NGO to mobilize farmer members and facilitate collection of member equity and help in initial running of FPC. In terms of intervention on the production front, productivity is low which is also partly because of inadequate availability of high yielding malt varieties. There is, therefore, scope for intervention by the way of introduction of new high yielding malt varieties in the region. Line

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 66

departments under RACP and NGO service-provider may support the initiatives in terms of dissemination of benefit of going in for new high yielding varieties. Apt amendments in the contract farming Act could further facilitate this initiative. Traditional package of practices results in lower yield as against potential. There is therefore need to train farmers on the best package of practices. This could also be undertaken by stakeholders like large processors. In this context, a seed production programme needs to be launched availing the services of local or nearby ATC. FPC would take up bulk purchase of agri inputs at distributor price and sell member farmers at wholesale price. At the post-harvest stage constraints in terms of high moisture content, non-availability of sufficient storage facility, high level of dirt and impurities in harvested grain which may be addressed in two phases. At farm gate, RACP may facilitate demonstration cum subsidized availability of community defying platforms/ tarpaulin sheets. As a next step, FPC may facilitate custom use of sorting/grading facility in FCSC to member farmers. Many farmers resort to immediate sale after harvesting due to requirement of cash. FPC can offer farmers pledge financing facility through which they can get 70-80% payment immediately and leverage future market price. The FPCs formed would need mentoring, hand holding and business planning support. This would be provided by ABPF with support from local NGO and RACP from time to time. ABPF would organize various campaigns like buyer seller meets and FPC/FCSC members training to achieve this objective. ABPF would also provide establishment guidance for FCSC as per guidelines issued by RACP. Many procuring agencies would like to purchase directly from FPC if they become confident of quality and quantity of produce. ABPF would identify such agencies and facilitate an interface with the FPCs and help establish initial procedures.

There have been limited efforts in capacity building of farmer leaders (entrepreneurs) and BODs at the field- level. In this regard, it may be appropriate for ABPF to enable formation of FPOs to meet minimum scale requirements for upgrading as well as developing alternate market channels. Also, bank linkages under KCC scheme etc. may be explored. The RACP and line departments need also work in coordination with the NGO/service providers and the KVK etc. on high content of foreign materials in harvested gram, harvesting of immature grains and inadequate post-harvest infrastructure facilities for storage. The storage facility may be established as an FCSC with assistance under the project. There is also need for awareness seminars and b2b meets amongst processors and producers on the options for Special Licence and to source directly from producers (effectively aggregated into FPOs/ FPCs). Scope for re-orientation of Agri- marketing policy with reduced mandi taxes on direct procurement; and related capacity building interventions for farmers is a necessity that may be facilitated by the ABPF. The roles and responsibilities of the FPC has been discussed in 9.2.2.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 67

9.2. Envisaged Post-intervention value chain map of barley 9.2.1. Post Intervention Value Chain: Barley In the envisaged post-intervention value chain of Barley, FPCs/farmer associations could bypass the APMC and commission agents and undertake the value chain activities like aggregation and operate common facilities (FCSCs) undertaking drying, storage, packaging and transportation. Upon these primary processing and storage activities, the commodity may be supplied to SME as well as large processers like “Soufflet and other large breweries/malting companies. Best Agricultural Practices, seeds etc. supplied by processors could enhance the yield and productivity per acre encouraging crop diversification. Many global players including Soufflet, SAB Miller and Carlsberg as well as smaller local breweries are in operation in the region. The FPCs could undertake a host of activities ranging from input facilitation (seeds, pesticides, fertilisers), custom hiring in addition to providing common facility storage and primary processing facilities. These could help in increasing net value accruals to farmers by 15-30%. As a matter of fact, apparently through Soufflet’s intervention of undertaking “contract farming” (on the basis MOUs) with about 3,500 farmers, the average net value accruals to contracted farmers/producers has increased by over 15-30%. In addition, individual enterprise start-ups could be facilitated in secondary and tertiary processing of value-added barley products like oatmeal, puffed and roasted barley etc. The intervention plan of Barley may be broadly considered in the context of activities and stakeholders in three stages- Production stage/ Cultivation by producers/farmers, post-harvest stage and the processing stage. In the context of shift towards barley production to greater extent, the production of apt food/malt barley production than feed barley is important. It should be strengthened by adaption of best package of Agricultural Practices, capacity building of producers and also to evolve local self governance and market linkage institutions like FPCs. Undertaking contract farming interventions are some of the interventions required to redress related constraints at the production stage. At the post-harvest stage, major constraints are high content of immature grains/dart and foreign materials in harvested barley, (largely) rain-fed irrigation and inadequate storage facility are present. Well-designed FCSCs could help address these vices at the farm/producer level. At the processing stage, gaps are most apparent, in terms of awareness amongst processors in the inadequate producer processor links etc. These may be reduced through information dissemination and B2B initiatives matched with policy incentives (like mandi tax exemption) to facilitate the same. Wastage would reduce by around 2-5% because of intervention from FPC and direct trading with bulk processors.

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 68

Figure 9: Indicative Post Intervention value chain map of Barley

© Grant Thornton India LLP. All rights reserved. Value Chain Analysis – Barley 69

Post-harvest losses and measures to be taken: Table 25: Yield loss and interventions for Value chain of barley

Stage of Yield loss Reason Intervention value chain (in %) Pre-harvest stage 2-3  Bird invasion  Use of T Guards during crop maturity  Rodents  Use of rodent control measures Post-harvest handling 3-5  Lack of mechanized harvesting  Training on good at farm gate  Broken, immature, shrivelled harvesting practices grains including mechanized  Contamination during drying harvesting, drying of crop  Lack of appropriate storage using tarpaulin sheets or structure on farm clean floor Loss during local 1  Pilferage  Proper packaging of transportation to Mandi  Local handling harvested material and handling  Sampling Purchase by Trader/ 2-3  Poor storage structure and  Centralized aggregation Processor inefficient handling of harvested from farmers at CFC of produce FPC  Loss during transportation due  Packaging unit under CFC to loose packaging and poor handling Processing 3-5  Use low end and obsolete  Set up primary processing technologies units for FPC  Mismatch of capacities of  Support and guide agri- various machine lines entrepreneurs for setting up modern and high end machines Distribution to 1-2  Poor handling of value added  Support in storage facility wholesalers/retailers product through govt. warehouses  Inefficient packaging of product  Efficient packaging of  Improper storage facility produce to prevent  Lower shelf life of product leakage and improve shelf life Overall estimated 14-18 loss

9.2.2. Interventions through FPC in the barley value chain crop: Introduction to FPC Model Aggregation is the proposed solution of the constraints farmers are facing at present. It is proposed to form Farmers Producers’ Company by bringing farmers together in the form of voluntary groups of about 15 to 20 active farmers and federating 20 to 25 such groups into a Producer Company. These Producer Companies will be functioning on behalf of member farmers and will strive to undertake a range of activities which will result in added value accruals to farmers and value to farmers produce. To form a producer company, producer groups will be mobilized (in some cases, this initiative may have already been completed by NGO’s). It is envisaged that an elected committee of members of Producers Groups will form a management committee and oversee the performance of an incentivized manager/CEO. The manager will be trained in technical issues of post-harvest management, marketing and in operating a transparent accounting system. The ABPF will support the operation of the Producer Company, and accelerate the cross learning of best practices. FPC Development Approach

Value Chain Analysis – Barley 70

The FPC development approach may be viewed as depicted below:

Figure 10:FPC Development Approach Following are the steps to be followed for formation of the FPC:  PRI of the MTG: The MTGs will be made aware on the FPC model through PRI and individual farmers will be motivated to join the FPC as shareholder through respective MTGs.  Initial discussions with MTG leaders: After PRI is done, initial discussion will be done with the MTG leaders for further orientation on FPC concept.  Identification of MTG leaders: MTG leaders who show inclination to the concept will be selected in the executive committee for FPC formation.  Resource mobilization and FPC planning: The executive committee will meet 2-3 times to plan further activities of FPC viz. crops, strategy for business etc.  Election of BoD and Share collection: 10-12 BoD will be identified along with 2-3 expert directors one each from Agri, Horti, AH and WS dept. The BoD will decide on share value and initiate collection of share through MTG leaders.  FPC registration: Following identification of FPC BoD, registration will be done. This may take 1-2 months as DIN no of BoD has to be generated first. Care should be take that all elected BoD should have PAN no so that there is no delay in paper formalities for registrations.  FPC business: Following registration of FPC, ABPF will prepare business plan for the FPC and facilitate market linkage for input and output.  Setup of processing/ financing – ABPF will further facilitate establishment of processing unit setup along with feasibility studies and planning business linkage with market players.

Value Chain Analysis – Barley 71

Policy and Management A FPC will function within the overall policy and regulatory framework as per the Producer Company Act. The management of a FPC will vest with the elected Board from amongst the members. The provision about constitution of managing committee will be made in the byelaws. The management of FPCs will be by an elected Board of Directors. Therefore, the representatives of farmers will actually oversee and manage the affairs of a FPC. The selection criteria for membership of FPC may be viewed as follows: 1. A member will express his willingness to become a member of MTG. 2. A member will actively participate in all functions and activities of MTG 3. A member will contribute his equity to the FPC 4. A member will bring all or part of his produce to the FPC for sale. 5. A member will purchase all or part of his farm inputs through the FPC. 6. A member will produce and prepare his produce for marketing as per directions of FPC. 7. A member will contribute his share to the Producer Association as upfront payment for the business development plan of a FPC as needed. 8. A member will contribute his share to the Producer Company towards the reserves of FPC as needed. Illustrative list of components of a common facility of a Producer Company (Food Grain)  Godown for storage, drying platforms  2-3 MT per hour grain cleaning, grading, and packing machinery with shed  Additional need based Agricultural Equipment  Computer with internet connectivity for market information  Display Board with Accessories  Auction Hall  Input Suppliers Shops  Toilets  Drinking water & Electricity

Note: Though the illustrative infrastructure proposed is shown in the above tables, the actual infrastructure to be developed will be need based and on participative consultation process. Typically, start-up may be involved in secondary and tertiary processing activities while FPO’s may be involved in post-harvest and primary processing activity. In many cases, start-up may emerge firm within FPO members. The evaluation of success should be evaluated on the parameters as under: I. PCs operating without financial support by the end of 36 months. II. The PC operates with a reserve fund to cover short term cash flow deficit and with potential for reinvestment in various activities III. The PC has an effective governing structure. IV. The PC has a transparent accounting system.

Value Chain Analysis – Barley 72

V. The PC can function as a working example for other farmer organizations to observe and learn from. VI. Contribution towards increasing farmers’/members incomes.

9.3. Conclusion Barley has been a major crop of economic significance for farmers in semi-arid areas of Rajasthan due to low water requirement, production of grain and fodder both. The productivity in RACP clusters has already been above the state and average. However, some major constraints in production stage are in-consistent weather pattern, high cost of seeds and farmers not following PoP. It is also envisaged that, the crop productivity can be increased from 30 qtl / ha to 40 qtls per ha just by using improved malt variety of seeds thereby directly enhancing the earning of the farmer by 255 due to increase in yield. The crop suffers around 15-18% post-harvest loss due to handling at various stages in the value chain. There is currently scope of further reducing the cost of cultivation through reducing the cost of seeds and improved productivity through good agriculture practices. The post-harvest losses also need to be reduced through proper education of farmers and other handlers in the value chain. Currently, the farmers’ share in the consumer rupee is on lower side and much of the share earned by the traders can be reaped back to farmers by direct procurement through FPC and supplying to large companies like Soufflet. FPC of farmers would be an ideal intervention for evolving the role of farmers from being chain actors to chain partners by doing both backward and forward integration of activities related to barley value chain. At the back end, the FPC would help in reducing cost of cultivation by undertaking bulk purchase of agri input at wholesale price and selling farmers at a price equal to or lower than the retail price. Similarly, in the front end of the value chain, the FPC would undertake direct collection of barley from the farmers and thereby reduce both the wastage and cost of visit to mandi for farmers. The FPC can further undertake primary processing of the grain and supply directly to large processors and other value chain actors. For this, a strong base has to be facilitated for the FPC by motivating farmers to contribute in terms of equity and business participation with the FPC. The Board and FPC staff has also to be handholded for a period of 2-3 years to train them on all processes of FPC management and business processes. All stake holders including RACP, NGO, ABPF, Bankers and other support institutions therefore need to work cohesively towards the common goal of facilitating a strong community organization which can run in a sustainable manner after the project period. Expected outcomes: • 4% direct benefit on price through FPC and 2% benefit due to high price received directly • 1% saving on cost of transportation to APMC and associated charges • Increased competition in input and output market resulting in higher earning potential for farmer • Increased bargaining power of farmers • Sustainable operations through community institution and assets through FPC and FCSC • More water available for other crop or for increase in area

Value Chain Analysis – Barley 73

References

 Young, B. 2001. Barley; The Versatile Crop. Southern Illinois University, College of Science, Ethnobotanical Leaflets. (http://archive.gramene.org/species/hordeum/barley_intro.html) (retrieved on April 9,2017)  World atlas, The leading barley producing countries(http://www.worldatlas.com/articles/the-leading-barley-producing-countries-in- the-world.html)(retrieved on April 9,2017)  APEDA Agrixchange, International Production (http://agriexchange.apeda.gov.in) retrieved on April 9,2017)  APEDA AgriXchange , FAO, Major exporters, (http://agriexchange.apeda.gov.in) retrieved on April 9, 2017)  Anonymous (http://www.barthhaasgroup.com) (retrieved on April 9,2017)  USDA(* Estimates),(Unit –Million Tonnes) (http://www.karvycommodities.com/Presentations/Commodity%20Module_Barley.pdf) (retrieved on April 9, 2017)  Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research- reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017)  Dr M. Ketharaj S. Jeyakumar, Barley Production on Rise, 2010 (http://www.efymag.com/admin/issuepdf/Barley_May10.pdf) (retrieved on April 9,2017)  Rajasthan Agricultural Research Institute, Jaipur (http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute- jaipur) (retrieved on April 9, 2017)  Barley Cultivation Information Guide (http://www.agrifarming.in/barley-cultivation/) (retrieved on April 9,2017)  Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research- reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017)

Value Chain Analysis – Barley 74

 Queensland Government, Barley planting, nutrition and harvesting (https://www.daf.qld.gov.au/plants/field-crops-and-pastures/broadacre-field- crops/barley/planting-nutrition-harvesting) (retrieved on April 9,2017)  Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley- cultivation/) retrieved on April 9.2017)  Rajasthan Agriculture Research Institute (http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute- jaipur) (retrieved on April 9, 2017)

 1Farmer Advisory services, Chambal fertilisers and chemical ltd (https://www.indiamart.com/proddetail/farmer-advisory-services-6952486433.html) (retrieved on April 9, 2017)  Livelihood Initiation For Empowerment (LIFE), TUESDAY, April 19, 2011, (http://liferajasthan.blogspot.in/2011/04/know-kissan-call-center-1800-180-1551.html) (retrieved on April 9,2017)  Farmers’ portal (http://farmer.gov.in) (retrieved on April 9,2017)  Anonymous (https://www.google.co.in/search?q=processing+flow+of+barley+flour&client=firefox-b- ab&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiexqaC2f3SAhWJrVQKHRafAA0Q_ AUICCgB&biw=1525&bih=734#imgrc=mLyT_MtlH2beQM:)(retrieved on April 9,2017)  Farmers’ portal, CWC Link (http://farmer.gov.in/CWC_Link.aspx) (retrieved on April 9,2017)  Agmarknet (http://agmarknet.gov.in/) (retrieved on April 9,2017)  APMC,Indian Economic Service, Arthapedia (http://www.arthapedia.in) (Retrieved On April 9,2017)  Acknowledging inputs from RACP officials, related producers, processors, industry associations, NGOs, ATMA, Dept of Agriculture

Value Chain Analysis – Barley 75

Annexure 1: Stakeholders consulted over the study

Producers 1. 5 Farmers in Bansur cluster 2. 5 Farmers in Deoli Cluster 3. 5 Famer in Bari cluster 4. 5 Farmers in Manoharthana cluster 5. 5 Farmers in Baran cluster 6. 5 Farmers in Sangod cluster 7. 5 Farmers in Mokhampura cluster Processors 1. Soufflet, Mr. Sachin Thorat, Kota, 7023903009 2. Barley agro Foods Pvt. Ltd., Vasu Gupta, Delhi, 9560083234 3. Gupta Flour Andoil Industries, Bhunnesh Jain, Alwar, 9414018596 4. BRG Ceramine, Amit Gupta, Beawar, 9414009194 5. Agro Seeds Corporation, Sono Sharma, Jaipur, 9428498302 6. Akshay Enterprises, G.N Agrawal , Chadple , 9214009700 7. Agrasen Trading Company, Chetan Agrawal, Bikaner, 9414579409 Traders 1. Mahindra Karan , Anaj Mandi , Kota, 9414187882 2. Kamlesah Dhamani, Kota, 9636012539 3. Shyam Sundar, Kota, 9352779769 4. Sheetal (APMC), Kota, 9785169735 5. Kobra Traders, Madhusudan Kabra, Bundi, 9414393494 Government agencies 1. K. C. Meena (DPM), Dep. of Agriculture, Jahlawar, 9571569638 2. Jitendra Jahangir (DCA), Dep. of Agriculture , Jhalawad , 7014812577 3. Nitin Shinde (DC), Dep. of Agriculture, Jhalawad , 9946229354 4. Harimohan Berwa (Secretary), APMC, Patan, 9461788564 5. N.N. Jinadal (President), DIC, Chittorgarh, 9414734834 6. Sitaram Meena (Director), Dep. of Horticulture, Palathya , 9928491095 7. Mahendra singh (PC), APMC , Kota, 7442326726 Others 1. Nural Hasan (CMS), NGO, Palathya, 9667082929 2. Mr. R. K. Sinha (PD), ATMA, Kota, 9414448968 3. Mr. Laxman Yadav (T.L), NGO, Sangod 4. Mr. Sachin Panchal (SMS), NGO, Sangod, 9116889892

Value Chain Analysis – Barley 76

5. Dr. G.L Keshwa (Director ), Agriculture University, Kota, 7442321204 6. Dr. D. K.Singh (PC), KVK, Baran, 9414662038 7. Mr. Madan Lal, IWC, Kota, 9414188722 8. Mr. SohiL Khan (T.L), NGO, Palathya, 9214363655

Value Chain Analysis – Barley 77

Annexure 2: List out Central Warehousing Corporation (CWCs) in Rajasthan

Capacity Warehouse Project Description Manager Phone MT C/o Jaquar & Company Pvt. A. C. BHIWADI Ltd., SP-496, RIICO Inld Area, 01493 297825 4356 Yadav Bhiwadi – 301019 A-315, NSC, Oppt. ED, R. N. ALWAR 0144 23721 3574 Paryware Pvt. Ltd. Co. Alwar Meena Spl. No. 01 ,RIICO Indl Area, V. K. BARAN 9460079493 5000 Baran Road, Baran Jaiswal Plot No. G-162 to 165 & F-166 to 171, Brij Ind. Area, Behind Devendra 05644- BHARATPUR 9674 Nafed Plant, Phase-II, Hathni Prakash 228654 Road, Bharatpur Behind Sabzi Mandi, Pugal BIKANER Prit Pal 0151 2212399 25400 Road, Unit-I, Bikaner Opposite Govt. Engineering BIKANER-II College, Karni Indutrial Area, R. D. Punia 0151 211003 5000 Ph.II Bikaner-334004 Near Power House SRIGANGANGR-I S.S. Brar 0154 2440107 25200 Sriganganaga-335001 Udyog Vihar Plot No. E-194 N.K. SRIGANGANGR-II 0154 2494403 10000 to202 Sriganganaga-335001 Chabra C/o ARDC Godown,Mizewali Dhanwat 01501- KESARISINGHPUR Road,Kesrisinghpur 10176 Singh 233710 Distt.Srigangar K. D. HANUMANGARH C/o FCI, Opp. Railway Station, Dhiman, 13262 TOWN Hanumangarh Town FCI Sector - 8, New Mandi, J. R. HANUMANGARH-I Hanumangarh Junction, 01552 260602 21200 Sharma Hanumangarh RICCO Phase-II , Opposite Bhart HANUMANGARH-II RICCO, Water Works, 01552 211794 15000 Bhushan Hanumangarh

Value Chain Analysis – Barley 78

Capacity Warehouse Project Description Manager Phone MT 10, GGR, Hanumangarh Anupam TIBBI Road, Tibbi, Distt. 01539 224111 1000 Kumar Hanumangarh Plot No.SPL-1296,EPIP S.K. 0141 2771710 SITAPURA-I Sitapura, Ind. Area, Jaipur- 14870 Sharma , 2770227 302002 Plot No.SP-1,RIICO Industrial SITAPURA-II Y.K. Dubey 0141 2770223 11729 Area,Sitapura, Jaipur Near Cement Factory,Vill.- 01421 215112 KOTPUTLI Ramsinghpura Gopalpura Desh Raj 5000 97 Road,Kotputll, Distt. Jaipur. Plot No. SP-287 RICCO Raghunath JHUNJHUNU 01592 250138 5000 Industrial Area, Singh Bhuana Road, Surajgarh- Rampal 01596 SURAJGARH 2868 333029 Singh 2238349 S N Meena Ind. Area DCM Road, Nr New KOTA I 0744 36830 Grain Market Kota-324007 2363638 lndraprasth md. Area, KOTA II Road,No. 1, Near Daknia S.S.Meena 0744 2438019 49300 Railway Station Kota-324005 Plot No. SP-1, Kuber Ind. S N KOTA III 25000 Area, Ranpur, Kota III Panchal Khairabad Road, Ramganj RAMGANJ MANDI OP Mudgil 07459 22264 9893 Mandil Distt.-Kota Nr. All India Radio Basni R.S. NAGAUR 01582 241002 7401 Road, Nagaur- 341001 Mathur C/o ARDC Godown, Near Old Ram PARABATSAR Rly. Station.Parbatsar, Distt. 9460462881 28093 Behari Nagaur Jagmalpura, Via-Katrathal, Nand Lal SIKAR 01572 272013 5000 Post-Bhadwasi ,Sikar-33200 1 Verma Hanspur Road, Srimadhopur- Kishore SRIMADHOPUR 01575 251699 20600 332715 Prasad C/o Juptier Metal Pvt. Ltd., Kailash 01434- DEOLI NH—12, Deoli Distt : Tonk 5000 Narayan 239249 01434 239249 MOR Mills Product, Plot No. 02955- FATEHNAGAR H-49 Road No.2, RICCO Indl V. P. Singh 3106 220411 Area, Fatehnagar-313205 Opposite Krishna Dharma Raj Raj Central Warehouse Kanta, Udaipur By Pass. Kumar 14849 Beawar, Distt. Ajmer Sharma Katori Wala Tibara, Near Rajendra Central Warehouse Water Works, Tizara Road, 1442731026 8133 Prasad Alwar Central Warehouse Village MOR, Kushalgarh D.C. singh 2965274517 3400

Value Chain Analysis – Barley 79

Capacity Warehouse Project Description Manager Phone MT Distt.Banswara. Plot No.G-162 to 165,F-166 to 171, Behind NAFED Plant, N. S. Central Warehouse Phase-II, Brij Industrial Area, 5644228654 9674 Meena Hahteni Road, Bharatpur- 321301

Value Chain Analysis – Barley 80

Annexure 3: List of State Warehousing Corporation (SWCs) in Rajasthan

Sr. District Name of Warehousing Capacity Utilization Percentage No Warehouse including Utilization Own Other Total Reservation Constt. than own Constt.

1 Ajmer 1. Ajmer 13350 0 13350 13733 103 2. Beawar 6300 0 6300 5086 81 3. Kekri 3500 0 3500 3704 106 4. Kishangarh 5400 0 5400 4141 77 2 Alwar 5. Alwar 22650 0 22650 18967 84 6. Khairthal 7400 0 7400 3265 44 3 Banswara 7. Banswara 12200 0 12200 7608 62 4 Baran 8. Baran 27520 0 27520 15344 56 9. Antah 9200 0 9200 7472 81 10. Atru 5400 0 5400 1767 33 11. Chhabra 11550 0 11550 2079 18 12. Siswali 6750 0 6750 5304 79 5 Barmer 13. Barmer 6840 0 6840 7533 110 14. Balotra 3600 0 3600 2463 68 6 Bharatpur 15. Bharatpur 22000 0 22000 19499 89 16. Bayana 4700 0 4700 3995 85 17. Nadbai 6950 0 6950 4722 68 7 Bhilwara 18. Bhilwara 6750 8950 15700 16366 104 19. Gulabpura 7550 2000 9550 9505 100 20. 3600 0 3600 1497 42 8 Bikaner 21.Mandalgarh Khajuwala 10800 0 10800 8694 81 22. Kolayat 4050 0 4050 0 0 23. Nokha 2700 8900 11600 12460 107 24. 5400 0 5400 1510 28 Loonkarasar

Value Chain Analysis – Barley 81

9 Bundi 25. Bundi 24620 0 24620 18536 75 26. Kapren 6750 0 6750 6523 97

27. 6000 0 6000 1161 19 Keshoraipatan 10 Chittorgarh 28. Chittorgarh 17250 0 17250 17656 102

29. Nimbahera 13500 0 13500 13095 97 11 Churu 0 0 0 0 0 12 Dausa 30. Dausa 12900 0 12900 2521 20 31. Bandikui 13680 0 13680 6031 44 32. Lalsot 1260 1620 2880 1218 42

Value Chain Analysis – Barley 82

Annexure 4: Price variation of Barley in Rajasthan

Date Wise Prices for Specified Commodity on January, 2016 Commodity : Barley (Jau), State : Rajasthan Market Arrival Date Arrival Varie Minimum Maximum Modal s ty Price(Rs./Qu Price(Rs./Qu Price(Rs./Qu (Tonne intal) intal) intal) ) Alwar 5/1/2016 23 Other 1275 1350 1325 14/01/2016 47 Other 1300 1375 1340 Bagru 2/1/2016 0.5 Other 1400 1500 1450 3/1/2016 1.5 Other 1400 1500 1450 7/1/2016 0.5 Other 1500 1550 1525 21/01/2016 0.2 Other 1500 1500 1500 Bandikui 4/1/2016 0.1 Other 1580 1580 1580 6/1/2016 0.1 Other 1320 1320 1320 11/1/2016 0.1 Other 1515 1515 1515 13/01/2016 0.2 Other 1400 1400 1400 23/01/2016 0.1 NR NR NR Baran 5/1/2016 0.5 NR NR NR Begu 7/1/2016 668 Other 1450 1570 1500 Bharatpur 5/1/2016 0.5 NR NR NR Bhilwara 9/1/2016 1 Other 1424 1500 1462 Bijay 1/1/2016 0.7 Other 1365 1365 1365 Nagar 12/1/2016 0.5 Other 1382 1382 1382 26/01/2016 0.1 Other 1461 1461 1461 28/01/2016 0.4 Other 1491 1491 1491 Chaksu 2/1/2016 2 Other 1322 1322 1322 4/1/2016 0.6 NR NR NR 6/1/2016 0.8 Other 1415 1415 1415 28/01/2016 0.1 NR NR NR 29/01/2016 0.3 NR NR NR Chomu 7/1/2016 0.2 Other 1200 1200 1200 20/01/2016 1.2 Other 1400 1400 1400 Dausa 5/1/2016 0.9 Other 1200 1200 1200 9/1/2016 0.2 Other 1200 1200 1200 Deoli 4/1/2016 0.5 Other 1385 1390 1388

Value Chain Analysis – Barley 83

Date Wise Prices for Specified Commodity on January, 2016 Commodity : Barley (Jau), State : Rajasthan Market Arrival Date Arrival Varie Minimum Maximum Modal s ty Price(Rs./Qu Price(Rs./Qu Price(Rs./Qu (Tonne intal) intal) intal) ) 7/1/2016 2 Other 1380 1419 1400 13/01/2016 2.2 Other 1300 1392 1346 28/01/2016 0.7 Other 1440 1445 1443 Gharsana 13/01/2016 49.8 Other 3101 3160 3136 Itawa 4/1/2016 0.5 Other 1601 1601 1601 Jaipur 1/1/2016 1 Deshi 1300 1400 1350 (Grain) 19/01/2016 4 NR NR NR Jaipur(Grai 1/1/2016 5 Other 1300 1400 1350 )(Chandpol 19/01/2016 0.5 Other 1350 1450 1400 e) Jodhpur 11/1/2016 1 NR NR NR (Grain)(Ma ndor) Kekri 18/01/2016 1.6 Other 1250 1365 1280 Khairthal 7/1/2016 5 NR NR NR Kishan 10/1/2016 0.7 Other 1300 1300 1300 Renwal(Sa mbhar) Kota 2/1/2016 4 NR NR NR 4/1/2016 1.5 Other 1360 1360 1360 8/1/2016 2 Other 1472 1472 1472 11/1/2016 4 Other 1331 1341 1335 13/01/2016 3 Other 1475 1475 1475 21/01/2016 2.5 NR NR NR 22/01/2016 3 Other 1100 1361 1300 23/01/2016 0.5 Other 1300 1300 1300 27/01/2016 2.5 Other 1301 1301 1301 30/01/2016 5 Other 1322 1322 1322 Kotputli 11/1/2016 0.4 NR NR NR 18/01/2016 0.3 NR NR NR Kuchaman 19/01/2016 1 Other 1390 1390 1390 City Lalsot 7/1/2016 0.8 Other 1200 1200 1200 26/01/2016 0.4 NR NR NR Madanganj 2/1/2016 0.2 Other 1400 1450 1425 Kishangan j 4/1/2016 2 Other 1380 1420 1400 5/1/2016 1.9 Other 1400 1440 1420 6/1/2016 0.1 NR NR NR 13/01/2016 0.8 Other 1400 1480 1440 Mandalgar 22/01/2016 50 NR NR NR h 25/01/2016 40 NR NR NR 30/01/2016 22 NR NR NR

Value Chain Analysis – Barley 84

Date Wise Prices for Specified Commodity on January, 2016 Commodity : Barley (Jau), State : Rajasthan Market Arrival Date Arrival Varie Minimum Maximum Modal s ty Price(Rs./Qu Price(Rs./Qu Price(Rs./Qu (Tonne intal) intal) intal) ) Nimbahera 1/1/2016 30 Other 1300 1411 1400 2/1/2016 50 Other 1300 1430 1400 4/1/2016 40 Other 1300 1400 1350 5/1/2016 50 Other 1300 1425 1400 6/1/2016 50 Other 1300 1476 1400 7/1/2016 100 NR NR NR 8/1/2016 30 Other 1300 1450 1400 9/1/2016 20 Other 1300 1400 1350 11/1/2016 50 Other 1300 1450 1400 12/1/2016 50 Other 1300 1420 1350 13/01/2016 30 Other 1400 1484 1450 14/01/2016 30 Other 1350 1420 1400 15/01/2016 10 Other 1400 1450 1420 16/01/2016 10 Other 1400 1500 1450 18/01/2016 10 NR NR NR 20/01/2016 20 Other 1400 1500 1450 21/01/2016 20 Other 1471 1514 1500 22/01/2016 20 NR NR NR 23/01/2016 20 NR NR NR 25/01/2016 20 NR NR NR 27/01/2016 50 Other 1450 1547 1500 28/01/2016 30 Other 1536 1545 1540 29/01/2016 30 Other 1200 1524 1450 Raisingh 5/1/2016 0.4 Other 1160 1160 1160 Nagar 14/01/2016 1.5 Other 1225 1225 1225 22/01/2016 0.2 Other 1225 1225 1225 Rajasaman 7/1/2016 1.1 Other 1500 1550 1525 d 8/1/2016 1.8 Other 1500 1550 1525 10/1/2016 2.5 Other 1500 1550 1525 18/01/2016 5.9 Other 1500 1550 1525 20/01/2016 2.9 Other 1500 1550 1525 21/01/2016 1.9 Other 1500 1550 1525 29/01/2016 2.2 Other 1600 1650 1625 31/01/2016 2.4 Other 1600 1650 1625 Ramaganj 11/1/2016 0.1 Other 1200 1200 1200 Mandi Rani 5/1/2016 8 Other 4900 4920 4906 Rawla 4/1/2016 0.5 Other 1125 1125 1125 Sawai 7/1/2016 0.3 Other 1400 1400 1400 Madhopur Sri 4/1/2016 0.4 Other 1325 1325 1325 Madhopur 6/1/2016 1 Other 1260 1260 1260

Value Chain Analysis – Barley 85

Date Wise Prices for Specified Commodity on January, 2016 Commodity : Barley (Jau), State : Rajasthan Market Arrival Date Arrival Varie Minimum Maximum Modal s ty Price(Rs./Qu Price(Rs./Qu Price(Rs./Qu (Tonne intal) intal) intal) ) Srigangan 5/1/2016 0.5 Other 1260 1260 1260 agar 6/1/2016 0.5 Other 1269 1269 1269 Tonk 11/1/2016 1.1 Deshi 1250 1342 1315 12/1/2016 1.5 Deshi 1215 1315 1300 23/01/2016 0.9 Deshi 1290 1498 1435 27/01/2016 0.8 Deshi 1290 1430 1400 Udaipur 1/1/2016 26.6 Other 1375 1450 1415 4/1/2016 26.8 Other 1385 1460 1425 5/1/2016 3 Other 1385 1460 1425 7/1/2016 0.4 NR NR NR 8/1/2016 26.6 Other 1385 1425 1400 11/1/2016 42.3 Other 1385 1425 1400 25/01/2016 59.1 Other 1500 1550 1550

Value Chain Analysis – Barley 86

Annexure 5: Rural Godowns in Rajasthan

Sr. Name & add. of rural godown Capacity in Ownership Commodity stored No. MT 1. M/s Atal W/H, Nagour Road, 1000 Private Guar, Gram, tehsil-Nokha, Bikaner. Mustard, 2. M/s Shree Ram 2352 Private Guar, Gram, warehousing,vill- Sogawas, Mustard tehsil- Mereta city, Nagour.- Unit-1 3. M/s Shree Ram 4500 Private Guar, Gram, Warehousing,vill- Sogawas, Mustard tehsil-Mereta city,Nagour.-Unit- 2 6. M/s Permanand Paretha 990 Private Soybean, Spices, warehouse, vill- Harnawada, Urad, Moong the,- Chhipa-barod, Baran. 7. M/s Pawan warehouse, vill- 990 Private Guar,gram, mustard Govind Nagar road, tehsil- Nokha, Bikaner. 8. M/s Agrawal warehouse,vill- 2000 Private Guar,gram, mustard Sogawas, tehsil- Mereta city, Nagour 17 M/s Shree Shyam 975 Private Gram,guar, warehouse,vill-Bikasar, Bikaner wheat,mustard road,tehsil-Nokha, Bikaner. 39 M/s S.M Food products( Smt. 990 Private Guar, wheat, gram Madhu Bafna), plot no10,RIICO,Ind. Area, Bigod Mandalgarh, Bhilwara 40 M/s Sohan Food Products( Sri 990 Private Guar, wheat, gram Saransh Bafna),plot no.9, RIICO, Ind Area, Bigod, tehsil- Mandalgarh, Bhilwara. 63 RG of Shri Laloo Ram, vill- 100 Private Bajra, Guar, Gram Sudasar, Shri Dunagarh, Bikaner 64 RG of Smt Bhanwari Devi,vill- 50 Private Bajra, Guar, Gram Sanwatsar, SriDunagarh, Bikaner

Value Chain Analysis – Barley 87

Sr. Name & add. of rural godown Capacity in Ownership Commodity stored No. MT 65 RG of Smt. Keva Devi,vill- 50 Private Bajra, Guar, Gram Sanwatsar, Sri Dungargarh, Bikaner 66 RG of Shri Jeevan Ram, vill- 200 Private Bajra, Guar, Gram Likhamsar- Utrada, Sri Dungargarh, Bikaner 67 M/s Nokha Cold Stores,E-5A, 3240 Private Bajra, Guar, Gram Industrial Area, Nokha, Bikaner.

84 M/s Sri Ram Warehouse,vill- 1800 Private Gram, Guar Bikasar, Bikaner road, Bikaner

85 M/s Shri Bala jee 1800 Private Gram, Guar Warehouse,vill- Bikasar, Nokha, Bikaner 86 RG of Shri Sita Ram, vill-Bana, 100 Private Gram Guar, Ground tehsil-Dungargarh, Bikaner Nut ,etc.

87 RG of Shri Shiv Lal,vill- Bana, 150 Private Gram Guar, Ground tehsil-Shri Dungargarh, Bikaner Nut ,etc. 88 RG of Shri Ram Swaroop NH- 150 Private Gram Guar, Ground 89,vill-deshnoke, Bikaner Nut ,etc. 89 RG of Shri Mangi Lal,vill- 100 Private Gram Guar, Ground Berasar,tehsil- Dungargarh, Nut ,etc. Bikaner 90 RG of Smt Kesar Devi and 100 Private Gram Guar, Ground Ganesh Ram vill- bana ,tehsil- Nut ,etc. Dungargarh, Bikaner 91 RG of Sri Uda Ram,vill- 100 Private Gram Guar, Ground Barjangsar, tehsil –Dungargarh, Nut ,etc. Bikaner 92 RG of Shri Madan lal vill- 100 Private Gram Guar, Ground Barjangsar, tehsil- Dunagharh, Nut ,etc. Bikaner 93 RG of Shri Rupa Ram,vill- 100 Private Gram Guar, Ground Jakasar, tehsil – Dfungargarh, Nut ,etc. Bikaner 94 RG of Shri Kishore Daswani, Kh. 100 Private Gram Guar, Ground No.251/241, vill- Nut ,etc. Punpalsar,tehsil- Dungargarh, Bikaner 102 RG of Shri Brij Lal and Smt 100 Private Gram, Guar, Dhapu Devi, vill- Dhaneru, tehsil Ground Nut ,etc. –Dungarpur, Bikaner 103 RG of Shri Shankar Lal Bishnoi, 100 Private Gram, Guar, vill- Salundia, tehsil- Nokha, Ground Nut Bikaner

Value Chain Analysis – Barley 88

Sr. Name & add. of rural godown Capacity in Ownership Commodity stored No. MT 104 RG of Shri Rameshwar Lal and 100 Private Gram, Guar, Ram Swaroop, vill- Sindhu, Ground Nut tehsil –Nokha, Bikaner 105 RG of Shri Hari Ram, Vill.- 100 Private Gram, Guar, Akhisar, Tehsil-Nokha, Bikaner. Ground Nut ,etc.

106 RG of Shri Ishar Ram, vill- 100 Private Gram, Guar, Akhisar, tehsil- Nokha, Bikaner Ground Nut ,etc.

107 RG of Shri Surja Ram, Vill- 100 Private Gram, Guar, Ankhisar, Tehsil- Nokha, Ground Nut ,etc. Bikaner. 108 RG of Shri Badri Ram, Vill- 100 Private Gram, Guar, Ankhasar, tehsil- Nokha, Ground Nut ,etc. Bikaner. 109 RG of Shri Madan lal, vill- 100 Private Gram, Guar, Ankhisar, tehsil- Nokha, Bikaner Ground Nut ,etc.

110 RG of Shri Prhalad, vill- 100 Private Gram, Guar, Ankhisar, tehsil- Nokha, Bikaner Ground Nut ,etc.

111 RG of Smt. Shanti Devi, vill- 100 Private Gram, Guar, Ankhisar, tehsil- Nokha, Bikaner Ground Nut ,etc.

112 M./s Rekha Goyal and Sarika 5000 Private Gram, Guar, Goyal, near Narendra Bhawan,, Ground Nut ,etc. Gandhinagar, Bikaner, 118 RG of Shri Dayal Ram, vill- 836 Private Mustard, Guar, Sanwalias, tehsil- Meretacity, Gram etc. Nagour. 120 M/s Shri Shyam warehouse, vill- 1887 Private Gram, Guar, Bikasar, tehsil- Nokha, Bikaner. Ground Nut ,etc. 122 M/s Hanumant Warehouse,vill- 6000 Private Mustard, Guar, Sogawas, tehsil- Meretacity, Gram etc. Nagour 123 RG of Shri Roopa Ram, vill- 100 Private Mustard , Ground Tinwari, tehsil- Osian, Jodhpur. Nut, Gram , Guar . 124 RG of Shri Ghasi Ram, vill- 100 Private Mustard , Ground Balarwa, tehsil- Osianm Nut, Gram , Guar . Jodhpur. 125 RG of Shri Jaswant Singh and 100 Private Mustard , Ground Mrs. Tubi Devi, vill- Tinwari, Nut, Gram , Guar . tehsil- Osian, Jodhpur. 126 RG of Shri Bhanwar Lal ,vill- 100 Private Mustard , Ground Chirwai, post- Gagri, tehsil- Nut, Gram , Guar . Osian, Jodhpur. 127 M/s Manfool ram Bhadoo, vill- 2530 Private Gram, Guar, Govindnagar, tehsil- Nokha, Ground Nut ,etc. Bikaner 128 RG of Shri Bhanwar Lal ,vill- 100 Private Mustard , Ground

Value Chain Analysis – Barley 89

Sr. Name & add. of rural godown Capacity in Ownership Commodity stored No. MT Chirwai, post- Gagri, tehsil- Nut, Gram , Guar . Osian, Jodhpur. 129 M/s Manfool ram Bhadoo, vill- 2530 Private Gram, Guar, Govindnagar, tehsil- Nokha, Ground Nut ,etc. Bikaner 132 RG of Shri Satyavrat Bansal,vill- 4000 Private Mustard, Wheat, Kherlirail,tehsil- Kathukumar, Jwar, Bajara , etc. Alwar. 134 M/s Prabhu Dayal. Vill- Chidwai, 100 Private Mustard, Ground tehsil- Shergarh, Jodhpur. Nut, Gram , Guar . 136 RG of Shri Narayan Lal, vill- 50 Private Bajara, Mustard Pithaputa, Reodar, Sirohi 137 RG of Shri. Vijay Poonia, 475 Private Mustard, Guar, Khasara No. 301 -302 , Village- Gram etc. Dhamnia , Tehsil- Merta City, Nagour 138 RG of Shri. Kana Ram 1000 Private Mustard, Gram ,etc. Chowdhary, Village-Mangarasi, Post- Jana, Tehsil . Dataramgarh , Sikar 139 RG. Of Shri Navneet Lal Vyas, 100 Private Guar,Gram, Isabgol Vill.- Chak 14SKD, Panch Ka . Tala, Nachana, Tehsil- Pokharan, Jaisalmer.

Value Chain Analysis – Barley 90

Annexure-6: Product wise GST rates of Food Products

 GST-28% 1. Molasses 2. Chewing gum/bubble gum and white chocolate 3. Cocoa , fat and oil 4. Cocoa powder 5. Cocoa chocolates 6. Malt extract (other than for infant use and mixes and doughs of bakers) 7. Waffles and wafers coated with or containing chocolate 8. Extract, essences and concentrates of coffee 9. Mustard flour and sauces thereof 10. Sugar, lactose and glucose syrups 11. Food flavouring material 12. Churan for pan 13. Custard powder 14. Aerated waters containing added sugar or other sweeting matter

 GST-18% 1. Condensed milk 2. Malt, whether or not roasted 3. Refined sugar, sugar cubes 4. Sugar confectionery 5. All preparations of cereals, flour, starch or milk for infant use and sold retail 6. Pasta, spaghetti, macaroni, noodles 7. Corn flakes and other cereal flakes 8. Waffles and wafers (other than chocolate coating)

Value Chain Analysis – Barley 91

9. Pastries and cakes 10. Extracts, essences and concentrates of tea or mate 11. Soups and broths 12. Ice cream and other edible ice 13. Instant food mixes, soft drink concentrates, sharbat, betel, supari, packaged food 14. Water, including natural or artificial mineral waters and aerated waters not sweetened 15. Ethyl alcohol and other spirits 16. Vinegar and substitutes 17. Curry paste, mayonnaise and salad dressing; mixed condiments and mixed

 GST – 12 % 1. All meat in unit containers put up in frozen, salted, dried, smoked state 2. All meat and marine products, prepared or preserved. 3. Butter, ghee, butter oil, cheese 4. All goods under Chapter 20 (preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly) 5. Ketch-up & sauces, Mustard sauces 6. Dry fruits 2 7. Starches 8. Animal fats and oils 9. Fruit and vegetable juices 10. Roasted chicory and coffee substitutes 11. Yeasts and prepared baking powders 12. Namkeens, bhujiya, mixture, chabena 13. Bari made of pulses including mungodi 14. Soya milk drinks 15. Fruit pulp or fruit juice based drinks 16. Tender coconut water (in unit container with brand name) 17. Beverages containing milk

 GST – 5 % 1. All fish variants (except seeds of fish, prawn& shrimp) processed, cured, frozen state 2. Ultra-high temperature milk 3. Milk and cream including skimmed milk powder but excluding condensed milk 4. Yoghurt and other fermented milk and cream 5. Chena or paneer in unit container and branded 6. Egg yolk, fresh or dried 7. Natural honey in branded unit container

Value Chain Analysis – Barley 92

8. Vegetables frozen or preserved (but unsuitable in that state for immediate consumption) 9. Edible fruits and nuts; peel of citrus fruit or melons, in frozen or preserved state 10. Coffee, tea, pepper, vanilla, cloves, cardamoms 11. Seeds of anise, coriander, cumin 12. Ginger (other than fresh ginger), saffron, turmeric, other spices 13. Cereal groats, meal and pellets in branded unit container 14. Cereal grains worked upon (hulled, rolled, flaked) 15. Meal, powder, flakes, granules and pellets of potatoes 16. Meal and powder of the dried leguminous vegetables (pulses, sago, tamarind) 17. Wheat gluten 18. Soya beans 19. Ground nuts 20. Copra 21. Linseed, rape seeds, sunflower seeds, other oilseeds like mustard, poppy, 22. Flour and meals of oilseeds 23. Sugar beet and sugar cane (frozen and dried) 24. Vegetable fats and oils (groundnut, olive, palm, sunflower oil etc) 25. Beet sugar, cane sugar, khandsari sugar 26. Cocoa beans, shells and paste 27. Mixes and doughs for preparation of bread, pastry and other baker’s wares 28. Pizza bread 29. Seviyan 30. Rusks, toasted bread 31. Sweetmeats 32. , meals, and pellets of meat, fish meant for animal consumption 33. Cashew nuts and cashew nut in shell 34. Raisin 3 35. Ice and snow  GST – Nil % 1. Meat (Other than in frozen state and put up in container) 2. Bones and horn cores, bone grist, bone meal etc., hoof meal, horn meal, etc 3. Fish, prawn and shrimp seeds 4. All fish, fresh or chilled (but not processed, cured and frozen) 5. Fresh milk, pasteurized milk but not concentrated, sweetened 6. Eggs (in shell) 7. Curd, lassi, buttermilk 8. Chena or paneer (except in unit container with brand name)

Value Chain Analysis – Barley 93

9. Natural honey (no container-no brand) 10. Fresh fruits and vegetables, roots and tubers (except in frozen state or preserved) 11. Dried fruits 12. Leguminous vegetables, shelled or unshelled 13. Dried leguminous vegetables, shelled, whether or not skinned or split (pulses) 14. Coffee beans, unprocessed tea leaves, fresh spices 15. All cereals (no container-no brand) 16. Cereal grains hulled 17. Flour 18. Atta, maida, besan (no container-no brand) 19. Wheat or meslin flour 20. Cereal flour, groats and meals (no container-no brand) 21. Flour of potato, dried leguminous vegetables (no container-no brand) 22. Oilseeds of seed quality 23. Cane jiggery (gur) 24. Palmyra jaggery 25. Puffed, flattened and parched rice 26. Pappad (except when served for consumption) 27. Bread (branded or otherwise) (except when served for consumption and pizza bread) 28. Prasadam 29. Water (other than aerated, sealed etc) 30. Non-alcoholic toddy 31. Tender coconut powder 32. Aquatic, poultry and cattle feed 33. Salt, all types

© 2016 Grant Thornton India LLP. All rights reserved. References to Grant Thornton are to Grant Thornton International Ltd (Grant Thornton International) or its member firms. Grant Thornton International and the Grant Thornton India LLP is registered with limited liability member firms are not a worldwide partnership. with identity number AAA-7677 and its registered office at Services are delivered independently by the member L-41 Connaught Circus, New Delhi, 110001 firms.