International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 1, January 2018, pp. 348–355, Article ID: IJMET_09_01_037 Available online at http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=1 ISSN Print: 0976-6340 and ISSN Online: 0976-6359

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SUSTAINABLE STRATEGIES OF SMALL SCALE PEPPER PROCESSING INDUSTRIES – A CASE STUDY IN WAYANAD,

Vijay K Rajan M.Com 4th Semester, Department of Management and Commerce, Amrita School of Arts and Sciences, Mysuru, Amrita Vishwa Vidyapeetham, Karnataka,

Dr. S. RanjithKumar, Assistant Professor, Department of Management and Commerce, Amrita School of Arts and Sciences, Mysuru, Amrita Vishwa Vidyapeetham, Karnataka, India

ABSTRACT Agriculture plays a vital role in Indian economy, about 54.6% of the population is engaged in agriculture and allied pepper processing activities. Agriculture contributes 17% towards the nation’s Gross Value Added (GVA). Kerala has the 13th largest economy in India with the GDP of 7.48 lakh crore per annum. Although service industry is the predominant industry in Kerala, agriculture also having equal importance for the development of the state welfare as 12% of the GDP is derived from agriculture and allied activities. Natural rubber, coconut, tea, coffee, cashew and spices including , vanilla, cinnamon and nutmeg comprises a critical contribution to agricultural sector along with state produces 97% of pepper out of national output of India. District of Idukki and Wayanad are the two major pepper producers in Kerala. Idukki as the leading producer contributes 30,424 tons of pepper production from 43755 hectors. Wayanad contributes 3706 tons from8945 hectors. Even though the climatic conditions and the geographical aspects are quite comfort but the production remains less in Wayanad. The major reason what researcher has found that being a localite of Wayanad, pepper farmers in Wayanad are majorly unorganized and the less support from state Government. At this point the researcher made an attempt to undergo his research work in the topic of “sustainable strategies of small scale pepper processing industries– a case study in wayanad ,kerala”. Keywords: Agriculture, Gross value added, GDP, Sustainable development, processing industry.

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Cite this Article: Vijay K Rajan and Dr. S. RanjithKumar, Sustainable Strategies of Small Scale Pepper Processing Industries – A Case Study in Wayanad, Kerala, International Journal of Mechanical Engineering and Technology 9(1), 2018. pp. 348-355. http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=1

1. INTRODUCTION India is the second largest agricultural country in the world. Agriculture and allied sectors contributed 13.7% of the total GDP of the country in 2013. The contribution from agriculture is steadily declining year by year according to the surveys are conducted but still India exports $38 billion worth agricultural products to the various parts of the world. Pepper A.K.A Black nigrum is considered as king of spices and one of the main agricultural crop which is cultivated in south India. Karnataka and Kerala are the leading pepper producers in India Kerala is the 13th largest economy in India and agriculture plays vital role in the development of the economy. Rubber, coconut, pepper, cardamom, coffee etc. are the main agricultural crops which are cultivated in Kerala. Kerala contributes 30424 tons of pepper production from 43755 hectors of land. Idukki and Wayanad are the main pepper producing districts in kerala. In the total pepper production of Kerala, district of Wayanad contributes 3706 tons of production from 8945 hectors.

STATEMENT OF THE PROBLEM Even though the climatic conditions and geographic aspects are quite comfort but the production of pepper remains low in Wayanad. The lack of support from state government, Panchayath, lack of knowledge of farmers about the modern ways of pepper cultivation, fluctuations in the price of pepper in the market, less export facilities, un organized small scale farmers, un precedent diseases in pepper plants, etc. are the main factors which are pulling back Wayanad from achieving the maximum production from its potential. The economy of Wayanad is completely depends upon agriculture, so the lack of income from the agricultural activities directly affecting the economic Growth of Wayanad and it becomes one of the main reasons for indebtedness and increasing rate of farmer suicides there. In order to recommend the necessary solutions to overcome the above said issues, the researcher made an attempt to undergo this research by his empirical analysis.

OBJECTIVES OF THE STUDY  To find out the effective strategies of optimum pepper production in Wayanad.  To identify and sustain the best processing activities of small scale pepper farmers in Wayanad.

2. RESEARCH METHODOLOGY Study area: Wayanad district of Kerala State is considered as the universe of the study. Sample size: The sample size of 30 small scale pepper industries were considered for the study Sampling technique: Convenient random sampling Data collection: secondary data collected through structured interview schedules. Statistical tools used: Percentage analysis, Weighted average ranking.

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REVIEW OF LITERATURE Spices Board of India: Pepper A.K.A Piper nigrum is known as the King of spices .The plant requires a long rainy season and fairly high temperature and partial shades are needed for the best growth. Pepper begin bearing 2 to 5 years and may produce as long as 40 years. The berries are plucked when they begin turn red. Dr.Dhanya (Different varieties of pepper and its cultivation in wayanad district, kerala) 4/7/2010: The two major grades of pepper is black pepper and white pepper.pepper oil also excellent and used for various preparations. wayanad pepper has got place of pride in international market because of its unique quality. Mr. Nirmal Babu (Vietnam Model spice cultivation, The Hindu, 23/7/2012 : As Wayanad is having the second place in terms of pepper production in Kerala, but the production remains low comparing to its potential. Farmers in Wayanad are following the traditional method of pepper farming and they are not familiar with the modern methods. Mr. Vipin Paulose: ( Wayanad pepper farmers hope for a boost with a little help from Vietnam,Times of India, 8/2/2011: The pepper heart land Wayanad in kerala is expecting a surge in its pepper productivity through a special model which is commonly followed by farmers in Vietnam. Mr. Ayoob Thottathil. (Vietnam model spice cultivation,Times of India.12/1/2011)Vietnam model pepper cultivation is very effective and the productivity is higher and disease is less comparing to the traditional methods. Mr. Jacob john, Smt.S Sharada, Seasonal variation and disease, pest incidence in plantation crops,wayanad.17/5/2010 : Foot rot, yellow mottle, fungal pollu, were the three major diseases noticed in all seasons, during monsoon season the chances of fungal issues are more. N.S. Sajith. Domestic and international price of pepper, karshakasree, 28/7/2014 : Domestic and international price of pepper varies because of demand variation in overseas market, competition from another countries, domestic demand, quality issues. Sneha Sabu(Price volatility of pepper and its impacts in Kerala,13/11/16) Annual average price of pepper in market increased frequently from 2005 and reached 750 in august 2014 then subsequently decreased to 610 ruppes in May and the present price is rupees 420. Mr. Francis P.A. Karshakasree, Malayala Manorama,21/4/2014 : Spices board is introducing many schemes to boost pepper cultivation and production in wayanad, even though the policies are very effective it is not at all reaching to all the farmers. Jacob D Vadakkayil (Case study of INFAM in Wayand .3/12/2014) : farmers in wayanad are not having efficient storage facilities to store their products since moisture content is high in wayanad. Mr. M.I Shanavas ( Respected MP OF Parliament from wayanad) The Hindu, 27 october 2016 : For the purpose of rejuvenation of pepper cultivation and for the purpose of promoting the small and medium scale pepper processing units, government is on the way to make new policies and programs through krishibhavans in Wayanad. Mr. Alex Mathew : (Deputy Director of agriculture, Wayanad) ,Karshakasree, 12 december 2015 : Even though there are many small scale pepper processing units, the output and production level is very low, they are in lack of new pepper curing technologies and machineries. So the kerala government has to invest in providing efficient training and development to the Small scale pepper processing units.

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Mr. Thulasidharan Pillai: (Chairman, Jilla Bank Wayanad ) Annual seminar report,2015 : The Jilla Bank of Wayanad is willing to provide subsidized loan facilities to new start-ups and existing agriculture and allied units for their development. Mr. MP Veerendra Kumar. The Hindu, 2 May 2015, The spices Board of India has in principle of giving approval to starting up of new Organic pepper processing plant in Malabar and it can play crucial role in providing training and development programs, curing of organic pepper, trading of both black pepper and white pepper and also the byproducts.

3. ANALYSIS AND RESULTS The researcher has identified 10 factors that motivate the small pepper farmers for processing commodities through organized markets and they are given the chance to rank the factors according to their problems. They are as follows: lack of awareness about the varieties of pepper, lack of awareness programs from government authorities, lack of training programs, lack of new varieties of pepper, insufficient warehousing facilities, lack of geographical market place, discriminate price, threatening diseases, improper rainfall and labour problems. The researcher analyzed the factors with the help of weighted ranking technique and the results are as follows.

Table 1 Challenging factors of small scale pepper processing industries. Factor W 9 8 7 6 5 4 3 2 1 Total Rank R I II III IV V VI VII VIII IX Varieties of pepper 2 6 1 7 5 3 0 6 2 266 I Lack of awareness 7 3 0 4 4 3 5 1 3 163 VII Lack of training programs 5 0 3 7 9 1 2 1 2 167 IV Lack of new varieties 6 2 0 2 0 3 11 5 1 138 IX

Improper warehouse facility 8 3 1 4 4 3 2 1 4 153 VIII

Lack of geographical 8 3 5 6 0 0 1 4 3 165 V Market place Discriminate price policy 10 2 0 1 5 2 3 3 4 164 VI Threatening diseases 18 3 6 0 0 1 1 1 0 237 II Improper rainfall 9 3 3 1 3 1 8 1 1 178 III Labour problems 2 2 3 2 1 2 5 4 9 112 X As it could be seen from the above table weighted average rank is given to each factor. While considering 30 respondents ranks, observed the majority to the small farmers give priority to “verities of pepper”. Since it has secured 266 points and the least challenges is “labour problems “which has secured only 112 points. Hence, cultivation of “variety of pepper” is the major challenging factor of farmers in Wayanad district.

Table 2 Pepper Production in Kerala Wayanad Idukki Total production Year (kg/hector) (kg/hector) of Kerala (tons) 2012-13 419 695 46298 2013-14 289 350 29408 2014-15 476 445 40690 2015-16 528 597 40977 Source: Agricultural Statistics- Government of Kerala.

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From the above table, Pepper production of the state in study area has been proportionally high in the year 2015-16 when compared to the total production of the state. Since the geographical area of Idukki is comparatively huge when compared with Wayanad, pepper production of the study area also significantly less. But the graph also exhibited that there was a decrease in the production of pepper from 2012-2013 to 2015-2016.

Pepper Producon - Wayanad & Idukki

800

600 n o 400 oduc r

P 200

0 2012-13 2013-14 2014-15 2015-16 Years

Wayanad Idukki

Table 3 Inflationary changes in the price of pepper in Domestic market years 2012-2013 2013 - 2014 2014 – 2015 2015 - 2016 2016 -2017 2017 - 2018 Price per kg 400 550 600 720 640 400 Source: Spices board – industry bulletin, April 2017

Price of pepper in the domesc market

800

700

600

g 500 k

r pe

400 e ic r

P 300

200

100

0 2012 -13 2013 - 14 2014 - 15 2015 - 16 2016 - 17 2017 - 18 Years

As it could be seen from the above table, the price of pepper in the domestic market is not at all constant in nature, it fluctuates year by year.2015 – 2016 is the period when the price of pepper recorded high. Presently domestic market price is 400 rupees per kg and it is very low. Quality related issues in the international market, import from south – east countries mainly from Vietnam to India, etc. are the main causes behind the frequent fluctuations in the price level.

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4. FINDINGS OF THE STUDY

Major problems faced by pepper processing units  Geographical area of Wayanad is small comparing to the leading pepper cultivating district like Idukki.  Exclusive Nursery for varieties of pepper is less in Wayanad compare to Idukki.  Research centers for developing new varieties of pepper plants are not yet started by the State Government in Wayanad.  SME units in Idukki are familiar with the cultivation of high yield varieties of pepper plants because of direct support from Research centers, but it is not possible to farmers of Wayanad.  Less initiative from the State Government to conduct awareness programs about high yield varieties of pepper and its cultivation methods to the farmers.  Political influences and Party setup is comparatively weak in Wayanad when compare with Idukki.  Suppliers in Wayanad is struggling to find a direct market place for their products.  Domestic market price of pepper is inconsistant.  Wayanad is a place where tribal population is more but the developmental activities from the state government is not significantly effective.  Due to continuous loss and frequent unprecedented diseases, the respondents are being continuously frustrated to involve further again in Pepper processing. Therefore their psychological mindset influence them to convert their pepper plantation into other Plantation crops. It will be a sudden flop to the pepper processing in future and it will directly affect the revenue of the state.  Pulpally is a well-known developed area in Wayanad district only because of pepper cultivation and process just before a decade. But the present scenario is entirely changed due to sudden decline of rainfall in the region and frequently affecting diseases. Presently pepper production from pulpally region is very less.  Majority of the small scale pepper units in wayanad are not familiar with the proper irrigation facilities which can counter the improper rainfall.

5. STRATEGIES RECOMMENDED FOR OPTIMUM PEPPER PROCESSING  Kerala state government should take initiatives to startup new pepper processing units in Wayanad district. Presently raw pepper is being transported from Wayanad to Kochi for further processing. It will lead to increase in the transport cost and carriage cost. Instead, if special proposal given by the state government in study area, it will be more useful to beneficiaries.  Majority of the respondents felt that there is no point of direct sending of pepper to the end users. Farmers proposed that if the state government can introduce a `„Public Procurement and processing Cell in Wayanad‟, it will be helpful to get reasonable price to the product.  Since Wayanad is a hilly geographical area, there is a hurdle in transporting the goods to Vendors point. If the government introduce any appropriate transportation facilities to carry the goods to the market place, then it will be helpful to the farmers.

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 Special subsidies should be given to the farmers at greater extend in order to purchase the Pesticides sprayers, drip irrigation equipment, elevation ladders, sprinklers and other needed equipments.  The State government should take necessary steps to declare Wayanad as a special economic zone for availing tax concessions.  If the State Government can take initiatives to supply proper pesticides, high yield varieties of pepper plants, fertilizers through Krishibhavans which can prevent frequently affecting diseases and boost the production.  State government can take initiatives to conduct training and awareness programs to farmers through Krishibhavans.

6. CONCLUSION Climatically and geographically wayanad is a comfort zone for pepper processing, but small scale pepper units of wayanad are losing their hopes now because of various problems they are facing in the process of pepper cultivation. Lack of awareness about new varieties of pepper plants which can prevent threatening diseases and provide high yield. Effective training, research and development programs, establishment of advanced processing centers, entry and subsidy for the international participation, periodical and day to day updating of technology, consumer perception survey, well organized markets, membership in manufacturing forums, easy licensing mode, subsidized loans, free– trade opportunities are the best remedial strategies to sustain pepper processing industries in Wayanad to the core expectation of other countries. Since pepper is a medicinal product, an effective strategy significantly improves the pepper production and also the GDP growth of India.

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