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Jackfruit and Custard Apples LIST OF ACRONYMS & ABBREVIATION CFTRI Central Food Technology Research Institute CLCSS Credit Linked Capital Subsidy Scheme DC-MSME Development Commissioner – Micro, Small and Medium Enterprises DOI Director of Industries DPR Detailed Project Report DSR Diagnostic Survey Report FI Financial Institutions IA Implementing Agency IIHR Indian Institute of Horticultural Research ITDA Integrated Tribal Development Agency KVIC Khadi and Village Industries Commission MFI Micro Finance Institutions MSE-CDP Micro Small Enterprise – Cluster Development Program NABARD National Bank for Agriculture and Rural Development NIFTEM National Institute of Food Technology Entrepreneurship Management TABLE OF CONTENTS Executive Summary ................................................................................................................................................... I Preamble ................................................................................................................................................................. III Part A – Diagnostic ....................................................................................................................................... 1 1. Cluster Profile ...........................................................................................................................................1 2. Cluster Value Chain Mapping ...................................................................................................................7 3. Market Assessment and Demand Analysis ............................................................................................ 19 4. Profile of the Implementing Agency ...................................................................................................... 25 5. Profile of Technical Agency ................................................................................................................... 38 6. Profile of Nodal Agency ......................................................................................................................... 38 Part B – Analysis and Planning .................................................................................................................... 39 7. Need Gap Analysis ................................................................................................................................. 39 8. Project Rationale and Strategy Framework ........................................................................................... 41 Part C – Detailed Intervention Plan ............................................................................................................. 44 9. Project interventions ............................................................................................................................ 44 10. Project Cost and Means of Finance (CORE SFURTI) ........................................................................... 47 11. Plan for Convergence of INITIATIVES ................................................................................................. 48 12. Enhanced Project Cost and Means of Finance .................................................................................. 51 13. Proposed Implementation Framework ............................................................................................. 53 Part D – Business Plan and Expected Impact ............................................................................................... 55 14. Detailed Business Plan ....................................................................................................................... 55 15. Sustainability Plan for the spv ........................................................................................................... 68 16. Expected Impact ................................................................................................................................ 69 17. Monitoring and Evaluation ................................................................................................................ 70 References .............................................................................................................................................................. 72 Part E - Mandatory Documents ................................................................................................................... 74 List of Annexures .................................................................................................................................................... 74 EXECUTIVE SUMMARY Tropical fruits are a major source of livelihood, income and nutrition for tribal people. Yet due to low productivity, lack of infrastructure, inadequate marketing facilities, and poor price realization have inhibited the full realization of agricultural potential. ITDA Paderu in Visakhapatnam district of AP is a good production base of jackfruit and custard apples. In India, over the last decade, the area under horticultural crops grew by 3% per annum and production increased by 5.4%. The annual growth in custard apple has been high since 2016-2017 (23%). In 2015-2016, the total fruit production was highest in the case of Andhra Pradesh (120.98 lakh tonnes) according to the Ministry of Agriculture and farmers’ Welfare. For the same year, the area under custard apple production was 75 ha with a production of 600 MT. However, these numbers have rapidly changed from 2018-2019. The area now under custard apple in Visakhapatnam district is estimated to be 525 ha with a production of 5775 MT. Jackfruit is an exotic fruit grown in tropical regions and is native to South India. It has a subtle, sweet, and fruity flavour. It is often used as a substitute for meat by vegetarians and vegans. Apart from this, it is also gaining popularity due to the gluten-free nature of the flour of its seeds. Jackfruits have many essential vitamins and also fibre. A cup of sliced fruits provides protein, vitamin A, vitamin C, Riboflavin, Magnesium, Potassium, Copper, and Manganese. Its antioxidants also add to the health benefits that jackfruit provides. Custard apple is a delicious and commercially important fruit with pleasant flavour, mild aroma, sweet taste, good nutritional and medicinal values. The main sugars are glucose and fructose. Compared to other fruits, custard apple contains significant quantities of vitamin C, thiamine, potassium, magnesium, and dietary fibre. Despite its high sugar content, the glycaemic index of custard apple is low (54) and the glycaemic load moderate (10.2) and is desirable. Custard apple is also a source of medicinal and industrial products. It is also used as an antioxidant, anti-diabetic, hepatoprotective, cytotoxic activity, gene-toxicity, antitumor activity, and used as anti-lice agent. Large quantities of jackfruit and custard apple is produced and wasted in Paderu ITDA as they never reach the market. Thie proposed project proposes to set up a processing unit in Visakhapatnam district of Andhra Pradesh Executive Summary I for jackfruit and custard apple market its processed products in the organized market. The success of this model will be replicated in another district of the state. The financial assistance requested from GOI is Rs. 44, 253,537 to cover 90% of Hard Interventions, Technical Agency and Implementing Agency (PnP). Dumbriguda Farmer Producer Company shall be the Implementing Agency, a producer company set up as the Special Purpose Vehicle. The project will involve 788 women in the development of this cluster. Partners in Prosperity will serve as the implementing agency for this project. Means of Finance Particulars Amount Total In % EQUITY A. Equity from SPV 778,000 1% B. Equity from IA 3,758,726 6% C. Grant from SFURTI 44,253,537 66% Total Equity 48,790,263 72% DEBT Term Loan from Banks/Fis 1,000,000 1% Working Capital loan 3,886,972 6% Total Debt 18,563,620 28% TOTAL Equity and Debt 67,353,883 100% Executive Summary II PREAMBLE Apart from an impressive nutritional profile, jackfruit and custard apple have the potential to serve as an important crop in developing countries. Both jackfruit and custard apple are drought resistant and can weather the adversities of climate change. They can also withstand pests and diseases and are considered a rather low- maintenance fruit. There is abundant scope for value-addition to jackfruit and custard apple. Currently, about 60-70 percent of the jackfruit is being wasted in India due to low shelf life. The project proposes to develop a jackfruit and custard apple value chain through artisan institutions in the ITDA Paderu region of Visakhapatnam district. The Paderu Agency area produces large quantities of raw jackfruit and custard apple. The local farmers and collectors don’t have links to the market, and hence are unable to tap them for financial gain. The idea is to add value to the raw fruits and make them consumable in the form of fruit, custard apple pulp, jackfruit chips, jackfruit nectar, and jackfruit seed flour. A well-developed value chain system would identify loopholes in the production system and ensure efficient marketing. These products will be organically certified and claim higher prices than the regular. All tribal-women clusters will be formed for the functioning of this value chain. For this project, a Dumbriguda Farmer Producer Company Limited has been formed as a Special Purpose Vehicle (SPV) with a registered office in Visakhapatnam district, Andhra Pradesh. The membership of FPC comprises
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