Livelihood based Agri Business and Market Study in Tripura
Livelihood Based Agri Business and Market Studies for North East Rural Livelihood Project
Final report, Tripura April 2011
Submitted by
MART A-32, 1st Floor, Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995 www.martrural.com
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Livelihood based Agri Business and Market Study in Tripura
Content
Abbreviation and Accronyms 3 Acknowledgement 6 Executive Summary 7 1 Chapter 1: Background and Methodology 10 1.1 Background 10 1.2 Objective of the study 10 1.3 Approach of the study 11 1.3.1 Key features of the study methodology 12 1.4 Limitations of the study 13 2 Chapter 2: State profile and livelihood issues 14 2.1 State profile 14 2.2 Key indicators of project districts 15 2.3 Rural livelihood and poverty issues 15 2.4 Key livelihood trends 17 3 Chapter 3: Livelihood profile 19 3.1 Existing infrastructure & support services 19 3.2 Market accessed by villagers 21 3.3 Livelihood profile 22 3.3.1 Land-based livelihoods 22 3.3.2 Livestock based livelihood 29 3.3.3 Non-farm based livelihood 32 3.3.4 SHGs and livelihoods 34 4 Chapter 4: Value chain analysis 36 4.1 Introduction 36 4.2 Summary of recommendations 37 4.3 Potato cultivation value chain 40 4.3.1 Background 40 4.3.2 Feasibility of potato cultivation 41 4.3.3 Production clusters 42 4.3.4 Major usage and by products 42 4.3.5 Potato value chain 42 4.3.6 Project Intervention 48 4.4 Vegetable cultivation value chain 53 4.4.1 Background 53 4.4.2 Feasibility of vegetable cultivation 54
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Livelihood based Agri Business and Market Study in Tripura
4.4.3 Production clusters 55 4.4.4 Major usage and by products 55 4.4.5 Vegetable value chain 55 4.4.6 Project Intervention 61 4.5 Fish culture value chain 66 4.5.1 Background 66 4.5.2 Feasibility of Fish culture 67 4.5.3 Production clusters 68 4.5.4 Major usage and by products 68 4.5.5 Fish value chain 68 4.5.6 Project Intervention 75 4.6 Pineapple cultivation value chain 80 4.6.1 Background 80 4.6.2 Feasibility of pineapple cultivation 81 4.6.3 Production clusters 82 4.6.4 Major usage and by products 82 4.6.5 Pineapple value chain 82 4.6.6 Project Intervention 88 4.7 Pulse cultivation value chain 93 4.7.1 Background 93 4.7.2 Feasibility of pineapple cultivation 94 4.7.3 Production clusters 94 4.7.4 Major usage and by products 94 4.7.5 Pulse value chain 95 4. 7.6 Project Intervention 100 5 Annexure 1. List of stakeholders met during the study 105 2. List of villages visited 107 3. Processing unit for puffed rice making 108 4. List of secondary sources 111 5. Stakeholders consultation report 112
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Livelihood based Agri Business and Market Study in Tripura
Abbreviation and Acronym
ADC Autonomous District Council APMC Agriculture Produce Market Committee APRLP Andhra Pradesh Rural Livelihood Project DoNER Ministry of Development for North Eastern Region DRDA District Rural Development Agency FGD Focus Group Discussion FYM Farm Yard Manure GNP Gross National Product HDI Human Development Index JFM Joint Forest Management Kani Unit of land Kg Kilogram MART A leading livelihood and marketing consultancy agency MFI Micro Finance Institution MOP Muriate of Potash MPDPIP Madhya Pradesh District Poverty Initiatives Project MT Metric Ton NABARD National Bank for Agriculture and Rural Development NERCRMP North Eastern Region Community Resource Management Project for Upland Areas NERLP North East Rural Livelihood Project NREGA National Rural Employment Guarantee Act NREGS National Rural Employment Guarantee Scheme NSDP Net State Domestic Product OTELP Orissa Tribal Empowerment and Livelihood Programme RBI Reserve Bank of India RGVN Rashtriya Gramin Vikas Nidhi ROI Return on Investment Rs Rupees SGSY Swarnjayanti Gram Swarozgar Yojana SHG Self Help Group SIPARD State Institute of Public Administration and Rural Development SSP Single Super Phosphate VAT Value Added Tax WORLP West Orissa Rural Livelihood Project
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Livelihood based Agri Business and Market Study in Tripura
List of tables
List of Tables
Table-1: Key development indicators for state, west district and north district...... 15 Table-2: Availability of infrastructure and support services ...... 19 Table-3: types of market facilities available...... 21 Table-4: Classification of landholdings...... 22 Table-5: Major crops in villages...... 23 Table-6: Seasonality of major crops grown...... 24 Table-7: Practices adopted by farmers……………………………………………...... ……… 27 Table-8: Marketable surplus for major crops...... …………………………………………………. 28 Table-9: Selling system for major crops...... ……………………………………………….. 28 Table-10: Major livestock activities...... …………………………. 29 Table-11: Seasonality of major livestock activities…………………………………………………………… 29 Table-12: Farmer’s practices for fish culture…………………………………………………………………… 31 Table-13: Marketable surplus in livestock activities………………………………………………………… 31 Table-14: Selling system for livestock activities ……………………………………………………………….. 32 Table-15: Major non-farm based activities pursued by villagers………………………………...... 33 Table-16:Summary of suggested interventions for value chain activities...... 37 Table-17:Potato variety and market prices...... …………………………………………….. 46 Table-18:Constraints faced by farmers and intervention points…………………………………………. 47 Table-19: Economics for potato cultivation ……………………………………………………………………. 49 Table-20: Inputs costs and incomes for potato varieties...... ………..………………….. 50 Table-21: Wholesale and retail prices of vegetables...... …………………………………………….. 59 Table-22: Constraints faced by farmers and intervention points……………………………………….. 59 Table-23: Economics of green chilli production..…………………………………………………………….. 61 Table-24:Inputs costs and incomes from vegetables...... ………..……………………... 64 Table-25: Fish wholesale prices for farmers...... ………………………………………… 72 Table-26: Wholesale markets and type of fish sold...... …………………………………………………… 72 Table-27:Fish wholesale and retail rates………………………………………………………………………… 74 Table-28: Constraints faced by dish farmers and intervention points..……………………………… 74 Table-29: Economics for fish culture...... ……………………………………………………………….. 77 Table-30: Fish culture possibilities and their economics...... ………………………………………….. 78 Table-31: Pineapple farming practices...... ………………………………………. 84 Table-32: Wholesale and retail price for pineapple verities...……………………………………………. 87 Table-33: Unit prices for processed pineapple products...... …………………………………….…….. 87 Table-34: Constraints faced by pineapple farmers and intervention points………………………… 87 Table-35: Economics of pineapple cultivation...... ……………………….. 89 Table-36 : Economics of cash crop plantations ……………………………………………………………….. 91 Table-37: Area and Productivity of pulse cultivation…………………………………………………….… 94 Table-38: Comparative practices of subsistence and progressive farmer………………………..…… 97 Table-39: Wholesale and retail prices of pulses coming from various markets……………………… 99 Table-40: Constraints faced by pulse farmers and interventions points ……………………………. 100 Table-40: Economics for blackgram cultivation …………………………..………………………………….. 101 Table-42: Economics for various pulses ………………………………………………………………………….. 103
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Livelihood based Agri Business and Market Study in Tripura
List of figures
Figure 1: Key steps, activities, and outputs achieved ...... 11 Figure 2: Map of Tripura ...... 14 Figure 3: Key steps involved in selection of value chain activities ...... 36 Figure 4: Value chain Map for Potato …………………………………………………………………………………… 42 Figure 4: Value chain Map for vegetables …………………………………………………………………………….. 55 Figure 4: Value chain Map for fish culture ……………………………………………………………………………. 69 Figure 4: Value chain Map for pineapple …………………………………………………………………………… ...83 Figure 4: Value chain Map for pulses ……………………………………………………………………………………. 96
List of boxes
Box 1: 3 M Model Approach ...... 13 Box 2: case study of cold storage and transport service provider ...... 20 Box 3: Potential for improving horticultural productivity ...... 23 Box 4: Case study of a typical landless farmer ...... 25 Box 5: Rising poultry demand in the state ...... 29 Box 6: Case study of Baba Saheb SHG, West District ...... 34 Box 7: Factors that affect fish culture productivity ...... 67
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Acknowledgement
At the outset we would like to express our sincere thanks to Mrs. Jayasree Mukharjee (IAS), Joint Secretary & Director of Ministry for Development of North East Region (DoNER) for giving us this opportunity to undertake this important livelihood study for north eastern states.
We would like to thanks Mr. Alok Kumar Srivastava (IAS), Project Director, NERLP and his entire team for the constant guidance and support during the entire study period. A number of meetings with him at Guwahati and Delhi helped in smooth completion of the assignment. We would again like to thank him for his and team support for facilitating stakeholder’s workshop in the state. NERLP feedback on the draft report has helped us improve suitably to make it a useful project document.
We would like to sincerely thank Mr. Biswajit Sen, Senior Rural Development Specialist & Nathan M Belete, Senior Rural Development Economist at World Bank for their constant support in ensuring complete ion of the study, the first meeting at World Bank office along with PD, NERLP helped finalize the report template. Subsequently, the initial feedback after the first field visit helped in finalizing selection of 4 to 5 economic activities for undertaking detail value chain analysis in the state. We would also like to thank Varun Singh, Social Development Specialist and Dr. Amarendra Singh from World Bank who also shared the important feedback on the draft reports.
We would also like to thanks state level officials including Shri Kumar Alok, Commissioner & Secretary, Shri D. Basu, Rural Development, Joint Secretary, and District Collectors of North and West Districts, PD, DRDA (North District), PD, DRDA (West District) for their critical support during the study. We would also like to thank DRDA staff who facilitated and organized village meetings and also accompanied us to the villages. We would like to thank state level officials and resource persons including Mr. Shantiriyan, Director, Fisheries Department, Mr. C. R. Bondopadhya, Director, Horticulture Department, Miss Marie Korner, Socio economist, Indo German Cooperation Project, Mr. R. N. Coudhury, MD, Tripura Co-operation Milk Milk Producer Union Ltd., Agartala, Mr. Mukesh Thakkar, AGM, NABARD, Mr. Dhiren Das, Senior Executive, RGVN, Mr. A. K. Chanda, Joint Director, Directorate of Statistics and Economics and Md. Selim Reza, Chief Executive Officer, INBAR who spread their valuable time to provide us important information and relevant documents.
We would like to thank Dr. Binay Singh, Director, NIRD, Guwahati, Prof. P. C. Sikligar, Assistant Professor, NIRD, Ashim Kumar Das, Assistant General Manager (Business Development), NEDFi, Guwahati who shared with us their understanding of the north eastern states.
We would like to thank a large number of villagers who spent their valuable time with us in villages and also a number market players including whole sellers and retailers, processing units, transport services and cold storage services at Agartala and in district markets.
MART Team
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Livelihood based Agri Business and Market Study in Tripura
Executive Summary
The North East Rural Livelihood Project (NERLP) of the Ministry for Development of North Eastern Region (DONER), Government of India, aims to address rural poverty in the region through creation of sustainable livelihood for the rural poor, particularly for women. The project has commissioned ‘Livelihood Based Agri Business and Market study’ in Tripura, Mizoram, Nagaland and Sikkim to MART, a leading livelihoods and marketing consultancy, which was selected to conduct the study in all four states. MART signed a MoU with DoNER and closely coordinated with Project Director, NERLP based at Guwahati for finalizing study design, plan, fieldwork and information to key state stakeholders. The primary objective of the study is to assess economic opportunities in both farm and non-farm activities in the project area. NERLP assumes that intensive and innovative use of these local opportunities can result in enhanced livelihood opportunities and incomes for the communities. MART used 3M approach for the study that looks at ecosystem at the village level, market and enabling environment to analyze the livelihood scenario and challenges. Study looked at existing resources, skills, infrastructure and support services, markets for poor, major livelihoods of poor involved in agriculture, livestock and non-farm activities to suggest practical interventions. The study followed an 8-step approach involving secondary literature review, stakeholders’ consultation, preliminary field visits, village and market survey, writing draft report and final report after receiving feedback from NERLP and the World Bank. Study covered 13 villages in two project districts with DRDA support and conducted FGDs and individual interviews with villagers, state and district officials. Market study involved interviews with wholesalers and retailers, transporters, private cold storage owner, and processing units at Agartala, North district and West District. Tripura with a population of 31.91 lakhs (2001 census) is located in the southwest north eastern region. 31% population is tribal and is spread across the state. Tripura shares 84% of its border with Bangladesh and the porous border allows trade of a number agriculture and allied activities between the two countries. Around 60% of the area is hilly and forested. Though the state has good social infrastructure in terms of education but unemployment is high due to limited local opportunities. While planning commission estimates poverty level at 34.4 percent the state government puts it higher at 55 percent. The per capita income is low and below the national average. Key trends that will impact the livelihoods scenario in the state are land fragmentation leading to shifting cropping patterns with more focus on horticulture and cash crops, better communication, road connectivity, and marketing infrastructure leading to improved marketing functions, booming service sectors offering employment opportunities, modified APMC act leading to more private sector participation, and impetus to state economy by opening business corridors with Bangladesh. There is good availability of basic infrastructure facilities such as road, electricity, transport, telephone, and drinking water in project area that facilitate marketing functions and help set up processing units. Support services such as cold storages are available in big towns but small farmers are not avail to them due to small volumes and long distances. State government could set up more cold storages at strategic locations after doing a feasibility study to support small and marginal farmers. There is a good network of market infrastructure in the state with 474 primary markets, 64 wholesale assembling markets, 21 regulated markets, 6 municipal markets and 1 terminal market at Agartala. There are two big wholesale markets at Agartala. Permanent shops exist in all villages, vendors and MART, Noida 7
Livelihood based Agri Business and Market Study in Tripura
traders all villages in deal in agriculture, allied and non-farm activities. Weekly markets with cemented platform and shed exist in most villages and offer opportunity of selling directly to the consumers. The state economy is largely rural and agricultural and is constraint by availability of only 27% of its geographical area for cultivation. Rural community is engaged in three major categories of livelihoods; agriculture based, livestock based and nonfarm based. It was found that 85% community is engaged in livestock followed by 68% in agriculture and 46% in non-farm activities indicating involvement in multiple activities to sustain family needs. 95% of total operational landholding in the state is below 2 hectare and account for 75% of operated area. Average size of landholding has declined from 1.25 hectare in 1976 to 0.6 hectare in 1995. It has impacted the cropping pattern in the state with more inclination towards horticulture crops to earn higher income per unit of land compared to traditional paddy crop. Farmers are engaged in a number of cereals (predominantly paddy) and horticulture crops throughout the year. Farmers procure inputs individually locally from government and private players on as-and-when-required basis when demand is high and supply is low resulting in higher inputs costs. Farmers use traditional and different package of practices even within one village. Use of power tiller has picked up for land preparation as it saves time and cost. Majority of farmers sell agriculture produce in raw form to traders within the village and in nearby towns and realize different prices depending upon supply and demand situation. Creation of proper storage facilities including cold storage facility in nearby vicinity can help farmers realize better returns. State is a net importer of most agriculture products. Agriculture in the state has the potential to develop but is constrained not just by the terrain but by a lack of development of irrigation, limited use of modern inputs, higher inputs costs, improper use of package of practices, low productivity, and inadequate access to agricultural extension and markets. There is tremendous potential for the expansion of horticulture and plantation crops throughout the year. Organizing poor for collective sourcing of inputs and marketing, adoption of better package of practices, simple value addition such as sorting, grading and cleaning, marketing information, and direct linkage with wholesalers, and handholding field support can help poor farmers realize higher returns from the agriculture. Livestock rearing is done throughout the year in the state mainly as supplementary source of income. Fish culture, backyard poultry, cow rearing, and goatery are the predominant activities done by villagers. Government support to fish culture has seen many small famers shifting to it due to higher returns. Piggery is popular mainly among tribal. Most villagers rear local breeds only. Inputs for most livestock activities are available locally within the village. Fish seed is available through fishery department. Majority of farmers sell livestock produce to traders within the village and in nearby towns. There is a good potential to promote livestock activities in the state as state is a net importer of livestock and its byproducts. The livestock sector is constraint by low livestock productivity, adoption of traditional set of practices, high inputs costs, marketing information and inadequate availability of extension services. Organizing poor for collective sourcing of inputs and marketing, adoption of better animal management and rearing practices, marketing information, and field based handholding support can help poor villagers realize higher returns from livestock activities. Villagers are engaged in a number of non-farm activities such as agriculture labours, stitching, electrician, insurance agent, hotel, army, embroidery, knitting, school teacher, and carpenter etc. MART, Noida 8
Livelihood based Agri Business and Market Study in Tripura
Most of activities in service sector provide employment outside the village and require them to migrate. Women have acquired skills in stitching, embroidery, and knitting but only a few are able to earn livelihood out of them due to limited local demand. Imparting skills for automobile repair, mobile repair, cobblers that has local demand can offer livelihood to rural youths. Service sector opportunities such as banking, insurance, health, hospitality, and communication offer opportunities in nearby towns areas and youths can be trained to tap these opportunities. A large number of SHGs have been promoted in state till 2008-09. There were 27010 SHGs in the state with 11131 SHGs in West district and 4506 SHGs in North district. Under SGSY. DRDA facilitate both financial and non-financial supports to SHGs. SHGs are engaged in fish culture, piggery, goatery, cow rearing, handicraft, poultry and agriculture, duckery, rubber plantation, tent house, incense stick making, betel vine. However, these activities are hardly successful and SHGs face issues related to lack of proper marketing plan, low productivity levels, low volumes and high overhead costs, limited holding capacity of agriculture produce, and lack of marketing information and linkages. SHGs would require marketing handholding support and extension services. There are number of activities that project can promote among the poor that includes potato cultivation, vegetable cultivation, fish culture, pineapple cultivation, piggery, goatery, pulse cultivation, cow rearing, rubber plantation, and areca-nut cultivation. However, five activities namely potato, vegetables, fish culture, pineapple and pulses have been shortlisted in consultation with PD, NERLP and the World Bank staff for a detail value chain analysis using criteria such as interest and capacity of poor, possibility of engaging large number of poor, project mandate, market demand and gestation period. Value chain helps to identify opportunities for poor at every stage of product movement from producers to consumers based on which intervention strategies can be designed. The supply for select five products in the state is less compared to their demand and therefore, these can be promoted in the state. All five products are feasible from technical, market and economic point of view. The key constraints involved in value chain products are high costs of inputs as most of these are sourced from outside the state, poor quality of seeds and other inputs, use of traditional practices and lack of extension services, low productivity levels, and low affinity among farmers for collective inputs sourcing and output market. Value chain activity Unit Investment/unit Return on investment Potato cultivation using TPS 1 kani (o.4 acre) Rs 15815 115% Vegetable (chili) 1 kani (o.4 acre) Rs 12050 103% Composite fish culture 1 kani (o.4 acre) Rs 62326 41% Pineapple cultivation 1 kani (o.4 acre) Rs 42396 147% Pulse (blackgram) 1 kani (o.4 acre) Rs 6195 151% The activities to be performed by the project involves selection of beneficiaries and cluster, social mobilization and institution building of poor, preparation of business plan with the community, organize technical and business trainings, market exposure visits, establish backward and forward linkages with resource agencies, facilitate market linkages and monitoring and evaluation, and promoting higher order institutions such as federation and producer groups for collective actions. Project needs to create a chain of marketing professionals at head office, state level and district level and para professionals at the village level to execute the implementation plan.
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Chapter 1: Background and methodology
1.1 Background
The North East Rural Livelihood Project (NERLP) of the Ministry for Development of North Eastern Region (DONER), Government of India, aims to address rural poverty in the region through creation of sustainable livelihood for the rural poor, particularly for women. The project has commissioned ‘Livelihood Based Agri Business and Market study’ in Tripura, Mizoram, Nagaland and Sikkim.
MART, a leading livelihoods and marketing consultancy, was selected to conduct the study. MART held discussions with DONER team at New Delhi and signed a MoU. MART placed a two member team for each state to coordinate the study. MART maintained close coordination with Project Director, NERLP based at Guwahati to facilitate the study.
1.2 Objectives of the study
The primary objective of the study is to assess economic opportunities in both farm and non-farm activities in the project area. NERLP assumes that intensive and innovative use of these local opportunities can result in enhanced livelihood opportunities and incomes for the communities. The study evaluates livelihoods and opportunities on the basis of the following two components: 1.2.1 Infrastructure, resources and support services Identify major livelihood occupations of the rural community, categorize them according to geographical, ecological and watershed clusters and assess their viability based on local resources, infrastructure, support services, technology, policy environment and potential for growth. Suggest strategies to enhance income and nutritional security from the existing livelihoods through improved productivity, access to inputs and markets, capacity building, and collective action in marketing to achieve economic scale. Provide guidance in agriculture and horticulture development, changing demand and supply scenario, projection of future trends to ensure that farmers are able to face the challenge of negotiating on an equitable basis with market players. 1.2.2 Value chain analysis Shortlist major high growth subsectors and commodities for value chain analysis where the project can intervene to benefit the poor. Prepare value chain map for key products/commodities/services reflecting economic return at every stage, product movement from the rural producers to the final consumers. Identify major players in technology, markets, finance, and inputs contributing to value chain, and explore partnership possibilities with them. Identify infrastructure availability and institutional arrangements for input supply and output marketing. Identify constraints and institutional obstacles, social process, vulnerabilities and risks hampering benefits to the poor along the value chain. Identify critical investment needs in the value chain that can accrue better income to the poor. MART, Noida 10
Livelihood based Agri Business and Market Study in Tripura
Prepare techno economic feasibility guideline for setting up small, viable and sustainable processing units to impart value addition and longer shelf-life to-farm products.
1.3 Approach of the study
Figure 1 illustrates various stages of the study in the form of key steps and activities followed and outputs achieved.
Figure 1: Key steps, activities, and outputs achieved
Activities Key Steps Outputs
Reviewed of project literature and Developed better understanding of the reports Step 1 study and project states Studied livelihoods initiatives such as Pre study Finalised study design and plan NERCRMP in north east states. preparation Project Director sent intimation to state Studied secondary reports rural development office regarding MART Met World Bank and Project Director, field visit and coordination support NERLP at New Delhi to discuss study design
Met state nodal officer, rural List of key stakeholders finalised for development department officer at Step 2 meeting Agartala Initiation meeting Feedback on livelihood constraints and Meeting with DRDA and line at state and opportunities in the state department officers district level Finalized approach and methodology Shared study approach and methodology Understand NERLP objectives
Interacted with key stakeholders from Shortlisted 10-12 major products for line departments such as agriculture, Step 3 promoting in the state and value chain horticulture, animal husbandry, Fieldwork -1 analysis resource agencies, and key market (Interactions with Prepared list of stakeholders and value players key stakeholders) chain players and service providers Visited three villages in two project Finalized plan for Fieldwork-2 districts Generated list of livelihood activities
Met with World Bank staff and Project Finalised five products i.e. fish culture, Director, NERLP at New Delhi to share Step 4 potato, vegetables, pulses, and pineapple fieldwork-1 observations and Initiation Report for value chain analysis experience Submitted initiation report containing Discussion to finalise products for livelihood profile and issues, overall taking up value chain analysis approach and methodology, and field visit plan
Finalized field visit plans Completed livelihood survey in villages and Placed field teams Step 5 markets Visited 10 villages in two districts and Fieldwork -2 Collected information for value chain (Interactions in MART, Noida 11
Livelihood based Agri Business and Market Study in Tripura
interviewed producers/farmers villages and analysis of 5 products by meeting value Met market players in wholesale and markets) chain players retail markets at Agartala and project districts. Met line-department officials
Livelihood analysis Draft report as per study objectives and Value chain analysis for 5 products Step 6 feedback of World Bank and PD, NERLP Data analysis Draft Report Report writing
Share draft report though power point Agreed feedback of stakeholders on the presentation to World Bank, DoNER Step 7 draft report staff and other stakeholders as Stakeholders Content for final report finalized suggested by the PD, NERLP consultation Stakeholders consultation workshop report workshop to share Draft Report
Feedback incorporated from Final report as per study objectives defined stakeholders consultation workshop Step 8 earlier report Final Report
1.3.1 Key features of study methodology
MART coordinated with Director, Ministry of DoNER and Project Director, NERLP, Guwahati for finalizing study design, plan, fieldwork and intimation to key stakeholders. The Project Director, NERLP intimated the state government’s rural development department about the proposed study to seek their cooperation during the field visit. Joint Secretary, Department of Rural Development introduced MART team to DRDA of both project districts and also facilitated meeting with heads of government agencies at state level. MART team got in touch with DRDA of both project districts to finalise village selection for undertaking village survey and meeting with state line department officials. DRDA staff accompanied MART for village visit and facilitated meetings with villagers. MART used 3M approach to capture the existing livelihood scenario as described below. The fieldwork was planned in two phases: in the first phase knowledge of major livelihood activities was gathered through discussions with stakeholders at the state and district levels and popular activities were selected for the study; in the second phase, value chain analysis of the livelihood practices, productivity and marketing challenges was done. Thirteen villagers were visited in two project districts and information was collected from villagers through Focus Group Discussion (FGD). Individual interviews were conducted with farmers/villagers engaged in shortlisted activities for value chain analysis. List of villages is annexed. Interviewed value chain players like the producers, wholesalers, retailers, transporters, cold storage, processors, and government institutions at village, block, district, and state level. List of stakeholders met is annexed.
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Livelihood based Agri Business and Market Study in Tripura
3M Model Approach
3M is a systematic approach to livelihood based on the three tenets of micro finance, micro market and micro planning. The model primarily provides a tool to systematically map the local resources, skills, support services, markets and enabling environment for developing business plans. This process of 3M is as follows: surveys are conducted to assess the current available resources as well as the existing market demand. Once established, the levels of supply and demand determines the selection of appropriate livelihoods activities.
Analysis of information collected from villagers, market players and enablers leads to field based practical strategies to successfully launch and manage the activities. MART has extensively used 3M (Micro Finance, Micro Market and Micro Planning) Model for livelihood promotion, for resource mapping under various poverty alleviation projects across India such as APRLP, WORLP, OTELP, APDPIP, MP-DPIP and Rajasthan-DPIP. Based on its successful implementation a User Manual has been prepared with support of DFIDI and CARE India for its replication by agencies engaged at grass root level in poverty alleviation. The model has been presented at national and international seminars in USA, Philippines, Sri-Lanka and Thailand.
1.4 Limitations of the study
The information from villagers was collected using FGD approach and therefore primary data collected from them may not exactly match with data available with government department. Market related data has been collected from wholesalers and retailers in the wholesale and retail markets by conducting personal interviews. Therefore, data may represent trends only but accuracy of data may not be entirely reliable. Discrepancy has been noticed in various state level data available from various secondary sources. Self judgement has been used while using the data from a particular source.
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Livelihood based Agri Business and Market Study in Tripura
Chapter 2: State Profile and Livelihood Issues
2.1 State profile
The Location: Tripura is located in the southwest North Eastern Region. The state is connected with Guwahati, by National Highway (NH-44) the distance between Guwahati and Agartala is about 587 Km. The distance of Agartala from Siliguri (which is considered the entry point to the North East) is about 1065 Km. Tripura shares 856 Km long international border with Bangladesh, which is about 84% of total border of the State.
Most of the important cities of Bangladesh (including Dhaka) are within 150 km distance of the towns in Tripura. The direct distance between Agartala (Tripura) and Kolkata (through Bangladesh) is only about 350 km. The project for extension of railway line up to Agartala is under implementation. The state capital Agartala is connected by Air to Kolkata and Guwahati. Figure 2: Map of Tripura The Land: Tripura is among the smaller State in the North Eastern Region, with a total area of about 10492 sq. km. only, out of which about 60% area is hilly and forested. The cultivated area is about 27% only. The State gets fairly high annual rainfall of about 210 cm, well spread over the year.
The People: The State has a total population of about 31.91 lakhs (2001 census), which is the 2nd highest in the North Eastern Region, after Assam. The average density of population is also fairly high, at 304 per Sq.km, particularly considering the fact that 60% of the area is sparsely populated being forested and hilly. Hindu constitutes 85.6%, Muslim 8%, Christian 3.2%, Buddhists 3.1 and 0.1% of population. Tribal constitutes 31% of total population and are spread throughout the state. There are around nineteen tribal communities, Tripuri is the leading one that constitutes 55% of total tribal population. The other tribal group includes Halam, Mog, Kuki, Noatia, Garo, Munda, Lushai, Oraon, Santhal, Uchai, Khasi, Bhil, Chaimal, Lepcha and Bhutia. The overwhelming majority of the tribal people (97.4per cent) reside in rural areas. The literacy rate in the State is 74%, which is much higher than national average and 2nd highest in the North Eastern Region, after Mizoram. The State has a good social infrastructure in terms of educational and health institutions. The main languages spoken in the State are Bangla, Hindi and English.
The Economy: The State has good agro-climatic conditions, suitable for a large variety of Agro/horticultural crops. Further, industrial development has also been picked up over the past few years. In fact, during last about a decade, the state has recorded impressive growth rates. The annual average growth rate of overall economy in real terms for Tripura during 2003-04 was 7.75% against national
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Livelihood based Agri Business and Market Study in Tripura
average of 5.70%. The sectoral share of industries sector in the GSDP during the period 1993-94 to 2003- 04 raised from 11% to 22.15%. The industries and service sector together contribute 74.74% in the GSDP during 2003-04. The per capita income of the state rose from Rs. 5534 in 1993-94 and further to Rs. 20,357 in 2003-04. On the other hand, per capita income of India rose from Rs. 7690 in 1993-94 to Rs. 20,989 in 2003-04.
2.2 Key indicators for project districts
The table 1 below illustrates key development indicators for the Tripura state, west district and North district and also presents a comparative picture.
Table 1 : key development indicators for the Tripura state, west district and North district
Indicator State West District North District Population 31,99,203 15,32,982 5,90,913 Total area (ha) 1049169 299787 210755 Forest land (ha) 629429 179872 160134 Literacy rate (2005) 80.14 83.81% 78.53 HDI 0.59 0.61 0.51 Education index 0.73 0.77 0.60 Health index 0.79 0.82 0.74 Income index 0.25 0.26 0.19 Number of cultivators 311690 114900 95000 Agriculture labours 278642 69000 36000 Number of SHGs 27010 11131 4506 Number of markets 566 238 112 Source: economic survey 2008-09, NABARD’s potential linked credit plans
2.3 Rural livelihood and poverty issues (Source: Economic review 2008-09 and Human Development Report 2007) The State has made commendable progress in terms of absolute levels of economic growth, its per capita income is low and below the national average. The compound annual growth rate of NSDP (at constant prices) was 5.2 per cent in the 1980s and 6.7 per cent in the 1990s. In 2001–02, the per capita income of the State was Rs 18,759 (the Gross National Product or GNP per capita at factor cost in current prices was Rs 20,047 the same year). The estimate for Tripura in the RBI report is a little lower at Rs 17,459. As per NER vision 2020 document the unemployment rate among youth in 15-29 years age group in year 2004-05 is very high at 33% compared to 5.7% at the national level. This is due to low marketable skills among them. The Human Development Index (HDI) for Tripura for the year 2001 was 0.59. The achievements in human development as measured by the HDI in Tripura correspond to the medium level of achievement at the international level.
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The Planning Commission estimate of poverty in Tripura is 34.4 per cent. However, poverty estimates by the Government of Tripura puts it at 55 per cent which is higher than the Planning Commission estimates in 2001-02. Agriculture remains important, although the contribution of the primary sector to SDP has declined steadily, from 47 per cent in 1980 to 30 per cent in 2002. The share of the secondary sector was at 20% and the tertiary sector accounted for over 50 per cent of SDP. The state has high levels of unemployment, particularly among urban areas and among young men and women. In 1999–2000, the usual status unemployment rate among young men in urban Tripura was 21.9. In other words, more than one in five young men was unemployed and one in six young women was unemployed. In 2006–07, Tripura topped all States of India in respect of the person-days of employment generated per household under NREGA. The generation of 87 days of employment per beneficiary household, very close to the stated goal of 100 days in the Act, is “an unprecedented achievement in the history of social security in India” (Dreze and Oldiges 2007). While the economy of Tripura is still largely rural and agricultural (83 per cent of the population live in rural areas and 30 per cent of the Net State Domestic Product, or NSDP, is from the primary sector), the land available for cultivation is relatively restricted at only 27 per cent of the geographical area. Rice is Tripura’s main crop: 91 per cent of the cropped area is sown to rice. Other important crops are pulses, oilseeds, potato and jute and a variety of fruits, vegetables and spices, covering around 73,000 hectares, are grown in the State. The economy of Tripura is characterized by the near-absence of an industrial base, with manufacturing accounting for less than 3 per cent of NSDP. As per third census, small scale industry 2001—02 Tripura accounts for only 7.7% registered and unregistered SSI units in the north east region. The major industries in the State are based on natural gas and plantation crops, specifically, rubber, tea and bamboo. There is also a traditional handloom and handicraft industry. Agriculture in the State has the potential to develop but is constrained not just by the terrain but by a lack of development of irrigation, limited use of modern inputs, and inadequate access to agricultural extension and markets. There is tremendous potential for the expansion of horticulture and plantation crops. Water bodies, including those within forests, can be utilized for fishery activities. 60 per cent of the geographical area in Tripura is under forests. More than 70 per cent of the forested land is out of the control of the State administration (including the Autonomous District Council), since its control is vested with the Central Government (through the Forest Conservation Act 1980). The use and development of forest areas is particularly relevant to the creation of sustainable livelihoods for the tribal peoples. Tribal constitutes 31% of total population and are spread throughout the state. There are around nineteen tribal communities. Tripuri is the leading one that constitutes 55% of total tribal population. The first-ever census by the forest department in 2007 found 27,278 shifting cultivators families (1,36,000 persons) or jhumia dependent on jhum cultivation as their primary source of livelihood. This constitutes nearly 10% of tribal families in the state and is a matter of concern since jhum is a high-risk system of cultivation and in the current circumstances (with reduced years of the jhum cycle) cannot provide an adequate means of livelihood. However, it is still an important supplementary income and inputs in the daily lives of tribal people and provide sometime difficult to
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quantify benefits from the collection of fruits, bamboo shoots and other edible produce, from fodder, from construction material for houses, and from medicinal plants. West Bengal and Tripura were the first two States in the country to implement the Joint Forest Management (JFM) programme. As of 31 March 2007, a total of 472 JFM groups involving 44,882 families have been established. The majority of beneficiaries of JFM are tribal families.
2.4 Key livelihood trends
New employment opportunities will emerge in service sector: The contribution of tertiary (service) sector in the SDP is increasing – from 31% in 1960-61 to 55% in 2002-03. Therefore, in future more employment opportunities will emerge in the service sectors such as transport, storage, communication, retail, hotel, hospitality, health, tourism, finance, banking and insurance, and public services. Most of the jobs would require low skilled staffs which poor can take up undergoing short duration training courses.
Business corridors with Bangladesh will boost Tripura’s rural economy: Government’s agenda of opening of three business corridors with Bangladesh (15 km road link between Agartala and Dargah in Bangladesh, 75 km water link between Chittagong Port and Sabroom in Tripura and 12 km rail link between Agartala and Akhaura) will boost outflow of agriculture and allied products to markets within India and Bangladesh.
Communication and road connectivity will promote marketing activities: Penetration of mobile and media in villages will spur economic activities by extending marketing information to the small and marginal poor producers. Private mobile companies operate throughout the state. Road connectivity till small villages will help in transportation of products/services from villages to markets in towns and city. Broad gauge rail linkage will facilitate transport outside the state.
Small and marginal farmers will shift to cash crops: 90% of farmers in the state belong to small and marginal category due to land fragmentation; from 1.25 hectare per farmer to 0.6 hectare per farmer in 1995. This has affected the cropping pattern in the state and there is an increasing trends towards cash crops such as tea and rubber plantation and fishery culture. This would require creation of necessary infrastructure such as cold storage chains, rural godowns, marketing infrastructures, setting up processing units to boost up agriculture activities. Simultaneously, extending business development services, financial inclusion, and technical support to farmers would be critical to ensure small and marginal farmers benefit from cash crops.
Marketing infrastructure can help build rural entrepreneurship: A network of marketing infrastructure (474 primary markets, 64 assembling wholesale markets, 21 regulated markets, 6 municipal market and 1 terminal market) exist in the state that could be used for enhancing entrepreneurship among the poor producers by undertaking market exposures and capacity building initiatives.
APMC act will spur private sector investment in the state: Modification of APMC Act by state government in 2007 offers huge opportunity for greater private sector participation especially the big corporates. It has attracted several big corporate to enter the state and would promote ancillary units and micro, small and medium size units in the state. MART, Noida 17
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Inclusive social agenda is critical to economy growth: Past experience shows that civil unrest results into roads blockage and de-linkage with other states adversely impacting the livelihood of the villagers. The prices of agriculture inputs and commodities shoot up making setting up of new enterprises unviable. A conducive socio-economic environment will help poor to benefit from economy growth in the state.
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Chapter 3: Livelihood Profile
The success and growth of poor’s livelihood depends on enabling environment in terms of support services provided by government and private players, availability of basic infrastructure facilities, training and skills promotion facilities, marketing information and infrastructure, private sector participation, promotion of micro, small, and medium enterprises, supportive legal and policy framework, and overall entrepreneurial environment. At an individual level viability of a livelihood is influenced by entrepreneurial attitude of the community, organization and management practices and decisions related to input sourcing, adoption of package of practices, technology, market access, access to finance, and access to government support for the sustainability of livelihoods.
The following section presents findings from the field survey for existing infrastructure and support services used by villagers, markets availability and linkages, existing livelihoods pursued by villagers, and livelihoods pursued by SHGs.
3.1 Existing infrastructure and support services
The table 2 below captures the existing infrastructure available in villages and support services accessed by villagers.
Table 2: Availability of infrastructures and support services
Infrastructure and Availability within Availability in Distance travelled support services village (%) nearby location (%) to access services (in km) Road 100 - - Electricity 100 - - Telephone 100 - - Transport 100 - - Drinking water 100 - - School building 90 10 2-5 Post office 80 20 2-12 Community building 80 20 - Rice mill 80 20 2-4 Weekly market (Haat) 70 30 2-4 Irrigation (Dug wells) 60 - - Veterinary services 60 40 2-12 Market yard 20 80 2-10 Nursery 20 80 2-12 Skill training centre 20 80 2-12 Bank 10 90 2-12 Oil expeller 10 90 6-12 Cold storage 0 100 2-55 Source: Field survey
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Basic infrastructure such as road, transport, electricity, drinking water is available in all surveyed villages. This makes it possible to promote marketing activities and also setting up electricity based processing units. Most of the services are located at nearby block or sub divisions such as Sonapura, Bishalgarh, Rabindranagar, Kathalia and Agartala in West district and at Kumarghat, Dharamnagar and Panisagar in North district and are easily accessible to villagers. Due to availability of good roads and transport facility farmers find it convenient to sell directly to wholesalers located in nearby block and sub divisions. Telephone and mobile phone facility is available in all villages. This helps progressive farmers in accessing marketing information and taking right decisions for selling of produce. Availability of schools in most villages has ensured high literacy levels in the state. Weekly markets are present in most villages and help poor farmers sell small volumes directly to consumers realizing better prices. Availability of electricity has ensured that rice mills are present in most villages and oil expeller units have also come in few villages. It helps ensuring value addition taking place at the village level and accruing higher prices to villagers. Veterinary services are available in many villages through veterinary department however their timely availability is a constraint making villagers to try traditional practices first. Veterinary services are curative in nature leading to low adoption of standard practices among villagers. Skill training centre for stitching and weaving are present in big villages. Though banks have limited local presence MFI such as Bandhan extend small loans to villagers for consumption as well as small business activities. Cold storages are located at Melaghar and Agartala in West district and Kumarghat in North district. Due to long distances involved small and marginal farmers don’t find it viable to stock horticulture produce in cold storage and they tend to sell the produce immediately after the harvest resulting in distress sales. Setting up new cold storages after doing feasibility study will help farmers in stocking the produce and realize better prices.
Box 2: c ase study of cold storage and transport service provider
Bhuturia Brothers Limited Cold Storage, Agartala
It is a private party run cold storage established in 1949. Total capacity of cold storage for Potato is 2000 MT per season and for fruits it is 10,000 bags. Mainly 4 to 6 agriculture items are kept in the cold storage that includes apple, mussambir, Grapes, Badana. While potato is charged on season basis other items are charged on monthly basis. Charge for potato is Rs. 100 per quintal per season, for apple per bag is Rs 13-14 per bag, mosambi is Rs. 15 per bag, grapes is Rs 8-10 per bag, and pomegranate is Rs 10- 12 per bag. Pineapple and tomato is not kept in cold storage as these items damage other items. Labour charge for loading and unloading is borne by the wholesalers and retailers. Its head office is located at Kolkata. There are 6 staffs and 2 security staff to manage the cold storage. Staff is paid Rs 2000 to Rs 4000 and free accommodation facility. Monthly salary to each security staff is Rs 2800 per month.
Paul Road Ways Transport service, Agartala
It has been operating for over 15 years. It has four wheelers (3-4MT), six wheelers (8.5 MT to 9MT) and 10 wheelers transport facility. It gets order for transporting mainly potato, onion and other vegetables. It carries potato from Guwahati (Beltala Godown) to Agartala and vegetables from Guwahati and Shillong to Agartala. Distance from Guwahati to Agartala is nearly 600 km and Shillong to Agartala it is 450 km. 5 to 10 trucks come daily from Guwahati and Shillong. The transport cost from Guwahati to Agartala by a ten wheeler truck is Rs 28000 to Rs 30000 and Rs 13000 to Rs 15000 by a four wheeler mini truck. Packaging is done by the party that places the order. While cabbage is transported in loose, tomato in wooden box of 27-28 kg each, cauliflower in 30-35 kg bag and potato in 50kg bag. Labour charge for loading is Rs 4 per quintal and for unloading it is Rs 4 per quintal. MART, Noida 20
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3.2 Markets accessed by villagers
The table 3 below illustrates various types of market facilities accessed by villagers, number of villages catered by these markets and products available in these markets.
Table 3: Types of market facilities
Types of facilities Availability Number Products availability in villages per village (%) Within village Permanent shops in the 100 5-110 Grocery items, tailor, electrical, rice village mill, hardware, stationeries, cement, chemist, cloth, and tea stall Temporary shops in the 30 20-100 Fish, vegetables, meat, betel, snacks, village tea stall Vendors of the same village 20 10-18 Fish, dry fish, vegetables, pig, goat Vendors coming to village 80 2-15 Milk, cloth/garment, cosmetics, per day stationeries, toy, snacks, meat, fish Outside village Weekly markets 70 1 Agriculture produce and livestock Wholesale markets Agartala and - All households commodities, sub divisions agriculture and livestock Source: field survey
Permanent shops are available in all villages; more number in villages located away from a town market place. Temporary shops exist in few villages where farmers sell in local haats and seasonal shops also come up during the harvest season. Vendors from nearby villages visit most villages and sell variety of consumable items. Traders also visit from near places and procure vegetables and livestock from haats and villages. Weekly markets exist in most villages which have been set up with government support. These markets have cemented platform and sheds making it convenient to run them throughout the year. Wholesalers for agriculture produces and livestock are located at blocks, sub divisions and Agartala. Wholesalers at Agartala procure products from within and outside the state and in turn sell to wholesalers and local retailers. Villagers also sell agriculture produce and livestock products directly to wholesalers. Most of the wholesalers we met during the study have been in business for over 20 years and pass on the trading skills to next generations. Some wholesalers also act as commission agents and charge 6-7% commissions from farmers by linking them with wholesalers. In West District, Agartala is the major market accessed by villagers for sourcing of inputs, households’ commodities and selling of agriculture and livestock based produce. In North District, Dharamnagar and Silcher (Assam) are such major markets.
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3.3 Livelihood profile
The livelihoods pursued by rural community can be divided into three major categories; land-based livelihoods, livestock based and non-farm based. Majority of the community is found to be engaged in livestock rearing (85%) followed by agriculture (68%) and non-farm activities (46%).
Under livestock based livelihoods, majority of villagers are engaged in poultry, piggery, fish culture, goat rearing, and cow rearing mainly as a supplementary source of income. Pig rearing is popular among tribal population. Broiler (poultry) and fish culture was found to be primary source of income for many households. Though fish culture has picked up in last few years but state demand is still met from fish coming from Bangladesh, Andhra Pradesh and West Bengal.
Under agriculture, majority of villagers are engaged in paddy production where area under production is highest. The other prominent agriculture activities include vegetable cultivation, potato cultivation and arecanut plantation. Few are engaged in cash crops such as fruit cultivation (pineapple, water melon, jackfruit, litchi), rubber plantation, and tea garden. Pulses production has also gain attention in last few years.
Under non-farm based livelihoods, villagers are engaged in number of skilled and un-skilled livelihoods and prominent among them are agriculture labour, government jobs, drivers, insurance agents and petty businesses.
The following section analyses the three categories of livelihoods pursued by the rural community in surveyed villages.
3.3.1 Land based livelihoods
3.3.1.1 Landholdings
The table 4 below illustrates class of landholdings, percentage of operation land holding, average size of land holding and the area operated.
Table 4: Classification of landholdings
S.No Class of landholding Number of operation land Average size of Area operated holding land holding (ha) (%) 1 Marginal(<1 ha) 247380 (82%) 0.32 44 2 Small(<1-2) 40409(13%) 1.38 31 3 Medium and large (> 2) 13238(5%) 3.38 25 301027 0.60 Source: Economic Review, 2008-09 The above shows that 95% of total operational landholdings in the state are below 2 hectare and these account for 75% of operated area and are managed by marginal and small farmers. As per economic review reports the average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to 0.6 ha in 1995-96 due to fragmentation of land arising out of local socio-economic compulsions. This has impacted the cropping pattern in the state and villagers are showing more inclination towards cash crops, horticulture and fish culture which give higher income per unit of land compared to paddy cultivation. MART, Noida 22
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It is found that around 68% of rural households possess agriculture land and 32% households are landless. Majority of the farmers possess land patta and several of them have encroached upon the common land.
3.3.1.2 Major crops
The table 5 illustrates major crops grown in villages and percentage of households growing these crops.
Table 5: Major crops in villages
Major crops Availability in Percentage of households percentage of villages involved Paddy 100 31 Vegetables (except potato) 90 24 Potato 90 15 Areca-nut 60 20 Pulses 50 1 Pineapple 50 8 Rubber plantation 40 2 Fruits (except pineapple) 30 5 Source: field survey Note: during the survey it was decided that potato and pineapple are important crops from the point of view of small and marginal farmers therefore information related to these two crops is collected and represented separately. Paddy cultivation is the main crop in the surveyed area which is done in all the villages. Summer and winter vegetables and potato cultivation is done as cash crop in almost all villages by farmers who are willing to take some risk for higher gains. The major vegetables produced are brinjal, chili, tomato, lady finger, cabbage, peas, pumpkin and cauliflower. Areca-nut is grown mainly as a homestead crop. Pulses (moong, blackgram and tuar) production has picked in last few years after the focus by the agriculture department. The major fruits grown in the state are mango, orange, pineapple, jackfruit, litchi and banana. Horticulture department has promoted several crops such as cashew nuts and floriculture however small and marginal farmers would find it difficult to manage these activities successfully without proper handholding and marketing support.
Potential for improving horticulture productivity (source: horticulture department)
Tripura is the highest fruit producing state among North East states. However, productivity of Tripura is below the national average. Against 20MT/hectare national average of productivity Tripura produces 15.7 MT/hectare. The national average of productivity of pineapple is 27MT/hectare as against state productivity of 18.15 MT/ha. This is due to traditional practices followed by the famers. The horticulture department has set a target of improving productivity to 44000 plants per hectare from current level of 20000 plants per hectare. Similarly, for mango currently 50 plants are grown in one hectare that can be scaled to 400 plants per hectare.
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The local people have traditional skills for growing horticulture crops in the state. There is a plenty of scope to upgrade skills of the growers to make this activity more profitable by enhancing crop productivities through introduction of new technologies, proper application of fertilizers, use of micro irrigation techniques, better maintenance of fruit gardens, and high density plantations. In case of pineapple 20000 plants are grown in one hectare of land that can be scaled up to 44000 plants per hectare. It is observed that in last few years few small farmers have shifted from paddy cultivation to rubber cultivation due to higher and assured returns. However, not many farmers are able to do so as engagement in cash crops such as rubber plantation, pulses, vegetables and fruits require acquiring new skills, higher inputs costs, more engagement with market players which poor farmers find it difficult to do in absence of any handholding and marketing support mechanism.
3.3.1.3 Seasonality
The table 6 below captures the seasonality of major crops grown in villages in terms of production, marketing and production and marketing season
Table 6: Seasonality of major crops grown
Major crops Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Paddy P2 PM2 PM2 P1 P1 P1 PM1 PM1 P2 P2 Pulses PM2 PM2 P1 P1 PM1 PM1 P2 P2 Areca-nut P P P P P P P PM PM PM PM P Potato PM PM P P P PM Vegetables PM PM PM PM PM PM PM PM PM PM PM PM Pineapple P P P PM PM PM P P P P P P Fruits PM PM PM PM PM PM PM PM PM PM PM PM Rubber PM PM PM PM P P P P PM PM PM PM plantation P- Production, M - Marketing, PM – production and marketing Source: field survey It is observed that agriculture activity is done throughout the year. The intensity of engagement and area under coverage is higher during the kharif season as many small and marginal don’t have irrigation facilities. Paddy is grown twice a year. The first season is January to May which requires irrigation facility and the second season is July to November which is monsoon dependent. It was observed that majority of farmers takes only one crop during the monsoon season and few farmers having irrigation facility takes two to three crops a year. Vegetables are grown during the summer and winter season. Production period for vegetables last for three to four months. Arecanut and jackfruit is mainly grown as a homestead crop. Though the gestation period for arecanut, jackfruit, and rubber plantation is several years from 4 to 6 years but once the tree matures it gives production every year for several years. Project can promote long gestation crops as supplementary source of income but provides regular incomes for several years. MART, Noida 24
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3.3.1.4 Farming practices
The following section captures farming practices in terms of inputs sourcing, agriculture practices and technology used, market access, access to finance and government services. It has been observed that farmer practices depends of several factors such as entrepreneurial attitude, size of land holding, plain or sloppy land, availability of irrigation facility, access to government schemes, adoption of technology and package of practices, and linkage with market players. It has been observed that even a landless villager with entrepreneurial attitude takes land on lease basis, grow cash crops by adopting better practices and earn higher income compared to a small farmer who owns land but grow paddy mainly for own consumption.
Story of Kanulal Das, a typical landless farmer in Tripura
Kanulal Das is 45 year old, 7th standard pass and belongs to BPL family. His wife is 35 year old and is also 7th standard pass. He has two children; elder one is a 15 year old daughter and she studies in 9th standard and son is 14 year old and studies in 8th standard.
Livelihood profile
Kanulal is landless but has been doing agriculture for past 10 years during September to January every year. He takes 1 kani (0.4 acre) of land on lease every year from a local farmer and grows vegetables such as cucumber, radish, green chili and potato on rotation basis which have good local demand. He uses power tiller on hire basis for land preparation as it saves time and labour. Five years back he participated in 3-day training programme by agriculture department at Bishalgarh sub-division and found that the practices suggested there didn’t give him desired yield. Therefore, over the years he has made certain modifications in the package of practices. Though he didn’t feel the training useful but unlike farmers who have not received any training he remembers hands on various inputs by their names and quantity to be applied in the field! He does all agriculture operations by himself with family support and doesn’t hire labours. Except seeds, which he procures from Agartala wholesale market to ensure its genuine, he procures other inputs locally. In case of a pest attack he prefers to take advice from a local retailer from whom he purchases pesticide. It was observed that he was aware of new potato variety promoted by horticulture department that requires 50% less input cost and gives higher productivity. Vegetable provides him nutritional requirement for six month as he keeps a small portion for self consumption and sells the remaining quantity in the market. He sells vegetables to wholesalers at Agratala, which is around 35 km away and uses an auto to take the produce there. Last year he earned a net income of Rs 35000 of which he shared 50% with the land owner.
Activity Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Vegetables Radish P HM Chili P P HM Cucumber P P HM Potato P P HM NREGS labour 100 days Fishing labour 30 Days P stands for production, HM for harvesting and marketing
Last year he worked for 100 days under NREGS and earned Rs 10000 income. He also gets yearly employment for 30 days with the village from village fish farmers who hire his services for pond operations, catching fishing and selling at wholesale market for which he earns Rs 100 per day. For selling fish at Agartala wholesale market he earns Rs 20 per visit and food expenses. His total income from all sources is roughly Rs 30000 per year.
Family expenses
His yearly household expenditure comes to Rs 21000. His monthly requirement for rice is 50kg per month. He gets 35kg of rice from government store and procures remaining quantity from the open market retailers. His involvement in multiple activities MART,ensures Noida that he meets family expenditure and even saves a small amount for unforeseen urgencies. 25
Livelihood based Agri Business and Market Study in Tripura
Continue ……
Issues and concerns
Kanulal achieves low productivity due to improper package of practices adopted, higher input costs, lack of awareness on latest appropriate technologies, higher marketing overheads due to individual procurement of inputs and selling of produce. Any uncertainly on government support to NREGS and fish promotion in the state will have an adverse impact on his family income. Kanulal can benefit by tying up with other fellow farmers for procuring inputs to optimize costs and selling collectively to gain higher incomes. Capacity building support and exposure visits to successful farmers in the local area can help him adopt better package of practices.
3.3.1.4.1 Input sourcing
Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools from nearby towns. Seeds and fertilizers are available from government department however regular supply of fertilizer is a major constraint which shoots up its market price. Other inputs are available from open markets as well. Farmers don’t stock inputs and purchase them on as-and-when-required basis, mostly in cash. Short supplies of chemical fertilizers coupled with individual purchases of small quantities make farmers to spend two to three times of the actual price. For example, the actual price for 1kg of urea is around Rs 5.50 but farmers pay Rs 6 to Rs 10 per kg. Farmers also receive inputs on credits and repay the amount after the harvest. In such cases retailers charge higher rates for inputs. Purchasing of inputs collectively by building partnerships with wholesalers well before the production season can help farmers access inputs at lower rates.
3.3.1.4.2 Agriculture practices and technology used
Majority of farmers use home grown seeds but use of certified and hybrid seed has picked in last few years. Power tiller, because of its affordability, has picked up in villages for land preparation as it saves labour cost and time. A number of entrepreneurs have come up in villages that own power tillers and provide the facility to farmers at Rs 150 per hour. There are variations in the package of practices followed by farmers resulting in variations in investment cost, productivity and profitability (refer table below) due to low adoption of practices promoted by government department resulting from limited extension services in villages. Farmers consult local retailers in case of a pest attack. The one-time training inputs are not sufficient to change the old practices of farmers which is the main reason for low productivity for all major crops. For example, paddy yield varies from 5 quintal to 11 quintal per kani (0.4 acre), for chili it varies from 2 quintal to 4 quintal per kani and similarly for potato it varies from 16 quintal to 35 quintal per kani. Even within the village there exists such large variation in productivities. Except cleaning, there is hardly any value addition such as sorting and grading, proper drying and processing done by farmers. Some entrepreneurs run processing units for rice preparation and oil expeller in some villages and earn higher income compared to farmers who sell raw produce. For example, 0.4 acre (1 kani) of land gives 750 kg paddy that after processing gives 450 kg of rice and is sold at Rs 18-20 per kg where as paddy is sold at Rs 800 to 1000 per quintal. Similarly, one tree of areca-nut roughly gives 300 nuts (raw) and sold for Rs 120 to Rs 130. After drying 300 nuts becomes roughly 2 kg and is sold at twice the amount at Rs 250.
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Table 7: Practices adopted by farmers
Farmer practices Farmer 1 Farmer 2 Farmer 3 Location West District West District North District Household members 8 6 4 Total landholding 0.6 acre 2.8 acre 0.6 acre Land ownership Leased Self Self Land used for potato 0.4 acre 0.4 acre 0.4 acre cultivation Engagement in activity November –January November –January November –January Daily involvement 2 hours 2 hours 2 hours Sourcing of seed Private Agriculture office Agriculture office Use of organic manure No Yes Yes Application of chemical Yes Yes Yes fertilizers Inputs cost (Rs) 18190 14970 21750 Production (Kg) 3200 2400 3500 Selling to Sub division Sub division Consumer wholesaler wholesaler (Weekly haat) Price received (Rs) 12 8 10 Net income 19490 4230 13250 Profitability 103% 28% 61% Source: field survey Farmers who track market prices and sell directly to wholesale markets and consumers in haats get higher prices compared to farmers who sell immediately after the harvest. Training on improved farming practices through series of exposures, interactions with best practitioners and use of certified seeds can help crop productivities. A simple value additions in terms of proper drying, sorting and grading can help farmers realize higher incomes.
3.3.1.4.3 Access to finance
Money lenders are the traditional source of financer to rural community and they charge 5-10% per month. Micro finance agencies such as RGVN, Bandhan and Basix operate in the state and provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation activities. Bandhan was found to be operating in rural area. The effective rate of interest to farmers comes to 30% per annum though the flat rate is just 10-15%. Villagers repay the loan on weekly basis. SHGs promoted by DRDA also extend loan to its members for both consumption and business purposes however these are small loans that don’t meet business needs of the economic activity. DRDA extends SGSY schemes to poor to start various income generating activities that includes bank loan and subsidy component. In absence of proper handholding and marketing support SHGs find it difficult to manage the activity successfully and therefore find difficulties in timely repayment of bank loan.
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3.3.1.4.4. Market access
The table 8 below captures marketable surplus available after consumption fo major crops grown locally. Table 8: Marketable surplus for major crops
Major crops Volume consumed in village (%) Marketable surplus quantity per village (%) Paddy 74 26 Arecanut 44 56 Pulses 39 61 Potato 20 80 Fruits 18 82 Vegetables 4 96 Tea plantation 3 97 Pineapple 1 99 Rubber plantation 0 100 Source: field survey Except paddy, other major crops are sold by the farmers. Paddy is grown mainly for self consumption purpose however small and marginal farmers also sell small quantities immediately after the harvest for cash requirement and are compelled to purchase it back from open market to meet family requirement. A small percentage of vegetables, fruits, pulses and areca-nut is consumed in villages and excess marketable quantity is sold. The state is a net importer for pulses, vegetables, potato and paddy. The excess marketable quantity of rubber, tea and pineapple goes outside the state while other products are consumed within the state only. Table 9: selling system of major crops
Major crops Selling system (% of produce) Sale price Within village Traders Haat (Rs per quintal) Paddy 4 80 15 800-1000 Arecanut - 20 80 6000-9000 Pulses - 100 - 3000-5000 Potato 5 95 - 700-1300 Fruits - 100 - 2000-3000 Vegetables 3 82 15 1000-3000 Pineapple 2 98 - 3-5 per piece Rubber plantation - 100 - 14000-16000 Source: field survey Farmers sell the agriculture produce to traders within village, nearby block or sub divisions markets and at Agartala wholesale markets. Farmers also the produce directly to consumers in local haats (weekly markets) and villagers. The price of agriculture produce varies on daily basis and depends on supply and demand pattern. The above table shows wide variations in prices received by farmers and it depends on timing and place of sale. The prices are generally low immediately after the harvest. Creation of proper storage facilities in villages and understanding of demand pattern can help farmers realize better prices. MART, Noida 28
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3.3.2 Livestock based livelihoods
3.3.2.1 Major livestock
The table 10 below illustrates major livestock activities pursued by villagers and percentage of households engaged in them. Table 10: Major livestock activities Livestock Availability in Percentage of households percentage of villages involved Fishery 100 12 Poultry 100 22 Cow rearing 90 18 Goatery 70 25 Piggery 30 3 Source: Field survey It is found that livestock rearing is done in all villages in the state. Piggery, poultry and goatery are done as subsidiary activity on a small scale only. Fishery is being promoted in all villages with government support. It is being done on individual basis as well as on group basis promoted by the DRDA under SGSY scheme. Similarly backyard poultry is done in all villages where farmer keeps upto 10 birds. Some progressive farmers in most villages have started broiler units as well and they rear 400 to 500 birds. Cow rearing is also done in almost all villages and villagers keep 1-2 local cows only. Similarly goat rearing is also done in majority of villages and some families are engaged exclusively in goat trading. Piggery is done in few villages and is popular among tribal community.
Rising poultry demand in the state The state meat market is 50% broiler, 30% pork, 8% goat and remaining for others. Broiler has picked in last decade in the state as it is cheaper alternate to local poultry birds, goat and pork. There are nearly 2500 broiler units in the state. Each unit keep 500-20000 birds and a total of 8 lacs birds are produced every year. Live weight of 1.5 to 1.7 kg after dressing is achieved in 30-35 days of production cycle. 30% wastage is there after dressing. Market rate is Rs 140 per kg in Agartala and it would be Rs 125 to Rs 130 per kg in Kailashar. There is one broiler association in the state that regulates the price of bird. In Agartala, 50% supply comes from the West district and the other 50% supply come from the remaining three districts.
3.3.2.2 Seasonality
The table 11 below captures the seasonality of major livestock activities pursued in villages in terms of production and marketing season. Table 11: Seasonality of major livestock activities
Livestock Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Fish culture P P P P P P P P P P P P M M M M M M M M M M M M MART, Noida 29
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Piggery P P P P P P P P P P P P M M M M M M M M M M M M Goatery P P P P P P P P P P P P M M M M M M M M M M M M Poultry P P P P P P P P P P P P M M M M M M M M M M M M Cow rearing P P P P P P P P P P P P M M M M M M M M M M M M P- Production, M – Marketing Source: field survey All livestock are reared throughout the year. Marketing is also done throughout the year. All livestock activities can be started in any season during the year. Fish culture is mainly rainfed as 40% water bodies in the state are non-perennial. There are two types of water bodies- open water bodies include river, lake where fishery department leaves fingerlings that help poor in fishing activity; and other category include tank and pond that is used for fish culture. As per fishery department presently the state has 157688 water bodies for pisciculture with total area of 20521.07 ha and offers scope for its promotion in the state. The broiler unit has a production cycle of 35 days. A cow gives milk for 6-7 months only in a year and therefore a minimum of two cows can be promoted per family to provide regular income.
3.3.2.3 Livestock practices
The following section captures farmer practices in terms inputs sourcing, livestock practices and technology used, market access, access to finance and access to government services. It has been observed that livestock practices depends of several factors such as entrepreneurial attitude, availability of land, availability of fodder, government support, adoption of better animal rearing and management practices, and linkage with market players.
3.3.2.3.1 Input sourcing
Except for fish culture, inputs for other livestock mainly fodder is available within the village itself as byproduct of agriculture produce and wastages from the households. Fish farmers procure fingerlings from local markets and government hatcheries. Inputs such as mustard oil cake, quick lime and fertilizers are available from open market and government stores. Inputs costs are high in the state compared of other parts of India and these inputs come from outside the state and include high transportation cost. Inputs are sometimes available on credit without interest and farmers repay it after the harvesting.
3.3.2.3.2. Production practices and technology used
Most families keep local varieties of livestock and follow traditional rearing methods and these are mainly supplementary source of income to the family. There is low adoption of standard package of practices suggested by the government department due to limited extension services. Some progressive farmers has started rearing improved varieties of livestock such as Jersey cow, broiler units, and cross bred pigs that motivates fellow farmers . Fish farmers have learnt latest practices at model fish farms promoted by the MART, Noida 30
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fishery department. Livestock rearing is less intensive activity and is managed by the farmer itself. Whereas male members are engaged in procurement of inputs, production and marketing, women and sometimes grown up children are involved in production activity. Fish farmers employ local villagers to manage pond operations and pay them Rs 100 to Rs 150 per day. Since inputs costs are high so farmers use local substitutes. Progressive farmers use latest technologies and become role models for others in the village. The overall livestock productivity is low and even among the same activity farmers there is huge difference in productivity levels (refer the table below for fish farmers). For example, local cow on an average gives 2-3 litres per day whereas in the same environment Jersey cow was found giving 8 liters milk per day. Table 12: farmer’s practices for fish culture
Fish culture practices Farmer 1 Farmer 2 Farmer 3 Location West District North District North District Household members 8 6 4 Total landholding 2 acre - 3.2 acre Land ownership Self SHG Self Land used for fish culture 0.4 acre 2.6 acre 0.4 acre Engagement in activity November –January November –January November –January Sourcing of seed Govt./Private Own Private Production (Kg) 250 3545 746 Selling to Wholesaler Wholesaler Wholesaler Price received (Rs) 70 105 85 Inputs cost (Rs) 18190 14970 21750 Net income (Rs) 19490 4230 13250 Profitability 233% 190% 211% Source: field survey 3.3.2.3.3 Access to finance
As shared in the previous agriculture section villagers depend upon local money lenders for starting or expanding livestock activities. Micro finance agencies such as RGVN, Bandhan and Basix operate in the state and provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for various income generation activities including livestock activities. SHGs also extend loan to its members for livestock activities. DRDA extends SGSY scheme to poor to start various income generating activities that includes both bank loan and subsidy component.
3.3.2.3.4 Market access The table 13 below illustrates the marketable surplus for major livestock activities pursued by villagers. Table 13: marketable surplus in livestock activities
Livestock Volume consumed in village (%) Marketable surplus in village (%) Cow milk 85 15
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Poultry 19 81 Fish 12 88 Goat 10 90 Pig 5 95 Source: Field survey Except milk, other livestock are sold by the farmers. Milk is produced mainly for self consumption purpose and is consumed within the village itself. Other livestock are reared mainly for selling purpose and only small quantities are consumed within the village itself. The state is a net importer for fish and milk. Table 14: Selling system for livestock activities Livestock Selling system (% of produce) Sale price Within village Trader Haat (Rs per kg) Fish - 96 4 70-160 Pig 4 72 24 125-135 Goat 10 70 20 180-220 Poultry 1 95 4 110-150 Cow milk 100 - - 20-28 per litre Source: Field survey Table 14 above shows that farmers sell fish in weekly markets and nearby block and sub division markets. Due to high demand of fish the entire catch is normally sold in weekly haats and nearby daily markets within the block area. Big farmers also sell in nearby wholesale markets at sub divisions through commission agents and pay 6-7% commission. All transactions are done in cash. Piggery, poultry birds and goatery is sold to traders and also in local haats. Milk production is low in villages and the entire quantity is sold within the village itself. There is a good scope of improving cattle productivity by extending proper extension services.
The prices of various livestock commodities varies hugely and depend upon villagers’ understanding of supply and demand pattern, timing of sale, place of sale, sale directly to consumers or through channel partners. For example, fish price is observed from Rs 70 to Rs 160 per kg that depends on variety and size of fish, local fish or fish coming from outside the state. Similarly, for milk which is sold within the village itself the variation was little less and ranged from Rs 20 to Rs 28 per litre. In case of broiler birds the association located at Agartala regulates the bird prices in the state.
Organizing poor for collective sourcing of inputs and marketing, adoption of better animal management and rearing practices, marketing information, and field based handholding support can help poor villagers realize higher returns from livestock activities.
3.3.3 Non-farm based livelihoods
The table 15 illustrates major non farm activities pursued by villagers, percentage of households involved, their place of work and whether the skill is traditional or acquired.
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Table 15: Major non farm activities pursued by villagers
Non-farm Availability in Percentage of Place of work Traditional/ activities percentage of households acquired skill villages involved Stitching 100 27 Within Village Acquired Laborer 100 19 Village/Outside Acquired Electrician 100 1.2 Within Village Acquired Insurance agent 100 2.7 Village/Outside Acquired Driver 100 5 Within Village Acquired Government service 90 6.4 Outside village Acquired School teacher 90 1.3 Outside village Acquired Incense stick 70 16 Within Village Traditional making Army 60 0.6 Outside village Acquired Private service 60 3.0 Outside village Acquired Hotel jobs 60 0.5 Outside village Acquired Knitting 40 8 Within Village Traditional Police 40 0.4 Outside Acquired Plumber 40 0.1 Within Village Acquired Weaving 30 8 Within Village Traditional Embroidery 30 5 Within Village Acquired Carpenter 20 0.5 Village/Outside Traditional Food processing 10 0.1 Within Village Acquired Source: Field survey Rural community is engaged in number of non-farm activities in villages. Labours, electricians, insurance agents, drivers and tailors are present in all villages. A large number of women have been trained in stitching activity but most of them do it for their own family requirement and occasionally get work from fellow villagers. In terms of involvement of households predominant activities include stitching, agriculture labour and incense sticking making. Villagers shared that incense sticking making has come down over a period due to difficulties in getting bamboos. Women are mainly involved in stitching, knitting and weaving activity on a small scale and mainly serve family requirement and on request serve other families on payment basis. Most of the non-farm activities require acquiring new skills. Most of the skills for non-farm activities have been acquired first by working as an apprentice and then indulging in learning by doing approach. The journey to becoming a skilled person involves long years. DRDA under SGSY schemes has imparted skills for stitching, food processing, and incense stick making and weaving. Regular jobs in government sector and private sector make villagers migrate to town, cities and outside the state and become an important source of income to villagers through remittances.
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Villagers have voiced demand for skill training to tap emerging local opportunities in the areas of electrical repair, automobile repair, mobile repair, cobbler, drivers etc. to enhance their income. Emerging sectors such as banking, health and hospitality, banking and insurance will offer low skilled opportunities which poor youth can tap by undergoing skill based training.
3.4 SHGs and livelihoods
SGSY was started in 1999 to enhance employment among the poor. The SHGs are organized by swarojgaris from the BPL list approved by gram sabha. Till 2008-09, there were 27010 SHGs in the state. West district had highest number of SHGs in the state at 11131 and North district had 4506 SHGs. On an average an SHG has 10-20 members. SHG meet once every month and some even twice a month. One group saves Rs 30 to Rs 50 per month per member. Group savings are used for inter-loaning. SHGs discuss issues related society, involvement of members, group unity, livelihoods and marketing challenges.
Case study of Baba Saheb SHG, West District
Baba Saheb women SHG was formed in August 2006 in Ishan Chandra Nagar village. There are 12 members in the WSHG. Each member saves Rs.30 per month. Under SGSY scheme group got Rs.1 lac after 1st gradation in 2008 as 100% grant. After 2nd gradation in 2010 it got another Rs.2.5 lac as bank loan. Group started piggery activity as supplementary source of income with this financial support. Group got technical training by veterinary department for managing the activity. The cost of one piglet is Rs.800-1200. Feed is available in the local market and cost Rs.200-300/piglet/month. Immunization is done 2 times a year. Pig rearers follow stall feeding practices. Pig rearing is a less intensive activity and group member spends only one hour every day. Disease is the common problem faced by group members and one time training received by them didn’t result into proper adoption of package of practices. Every time the animal husbandry doctor visits he charges fee that discourage members to immediately call the doctor in case of disease problem that results into fatal cases. Also, pigs have not been insured by SHGs and exposing them to higher disease risks. Last year seven piglets died of disease that discouraged them to repay the loan component regularly. Pigs are sold locally as marketing is not a problem due to huge local demand. Group members sell to local traders who visit village regularly to procure pigs. After two years selling price of a grown up pig is around Rs 20000. The group would require training on animal management practices, vision building, record keeping, activity economics, insurance cover, and exposure visits to successful entrepreneurs in the local area to manage the activity in a sustainable manner.
Both financial and non-financial supports are provided to SHGs. DRDA provides basic training to SHGs on accounts management, conducting group meeting, writing of proceedings, and maintenance of records through block support. Line department resource persons provide skill development training that has marketing component as well. External resource persons and experts are also hired to impart training on need based topics. SIPARD a state level training institution provides training on all topics related to rural development. SHGs are engaged in fish culture, piggery, goatery, cow rearing, handicraft, poultry and agriculture, duckery, rubber plantation, tent house, incense stick making, betel vine. As per information shared by SHG members that their monthly income ranges from Rs 2500 to 3500 per month per member. The issues faced by them in successfully managing the livelihood activities include high inputs costs, low productivity, low volumes, limited holding capacity of agriculture produce, low adoption of package of practices, and marketing information and linkages. These issues can be tackled by providing proper extension services to them and marketing handholding support. This would require that facilitating MART, Noida 34
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agencies such as DRDA needs to appoint sufficient number of staff with proper marketing experience and managing livelihoods on large scale. The managerial capacity to mobilize linkages with various line departments and resource agencies and extending services in villages is important to sustain their livelihoods.
As per NABARD document, in 2009-10 7997 SHGs were cumulatively financed by 6 banks through 263 bank branches and disbursed Rs 4102.07 lacs with support of 11 SHPIs. However, farmers expressed that credit facility though available is not adequate as compared to actual requirement. Tenant farmers and farmers with title of the land in deceased father or forefathers names do not get KCC to avail bank loan for cultivation. One of the major constraints in up-scaling SHG-Bank linkage programme in Tripura was lack of awareness on basic concepts of SHGs and high influence of subsidy oriented SGSY. With an objective of ensuring greater financial inclusion and increasing the outreach of the banking sector, the RBI has permitted banks to use the services of NGOs/SHGs, MFIs and other civil society organizations as intermediaries in providing financial and banking services through the use of Business Facilitators (BF) and Business Correspondents (BC) models. NABARD has sanctioned a pilot project on utilizing Farmers Clubs as Business Facilitator to Tripura Gramin Bank in July 2009. Micro finance is a necessary but not the sufficient condition to promote micro enterprises among the poor. Poor needs a range of business development services through field based handholding support in terms of linkages with raw material providers, technical and marketing skills such as costing and pricing, negotiation and market exposure, and vision building.
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Chapter 4: Value Chain Analysis
4.1 Introduction
Value Chain development is a process, which analyses every stage of the product or services i.e. from production to the end consumer and endeavours to build the competitiveness across the chain. Value chain analyses involves identifying product movement, number of channel partners involved and roles performed by them, value received by each of the channel partners, constraints faced by each player in the chain. Value chain analysis helps to identify opportunities for value addition at every stage of the product from production to its marketing, prices at every stage and corresponding value addition possibilities, assess infrastructure requirement and capacity building needs of producers to achieve higher value in the chain.
Activity selection for value chain analysis
Following figure 3 captures the flow of key steps performed to select the five potential products for conducting value chain analysis; Figure 3: Key steps involved in selection of value chain activities
Task performed Key Steps Shortlisted products/commodities
Review of regional implementation plan Step 1 Incense stick making, bamboo shoot provided by the World Bank production, floriculture, piggery, fishery, Study secondary reports and website Literature review puffed rice preparation, poultry, rubber plantation, milk production, handicrafts, vocational training in service sector, agri processing units
Village visits in both districts and market Step 2 Fish culture, potato cultivation, pulse survey cultivation, vegetable cultivation, pineapple Meeting with resource agencies, line Field visit and cultivation, piggery, areca-nut, goatery, department officers at state and district meeting with rubber plantation and cow rearing level resource agencies Review of secondary reports in Tripura
Meeting with World Bank staff and Step 3 Fish culture, Project Director, NERLP at New Delhi Consultation with Potato cultivation, Analysis of secondary reports PD, NERLP and Pulse cultivation, World Bank staff Vegetable cultivation, Pineapple cultivation
Chapter 3 captured community’s engagement in long list of livelihoods across agriculture, livestock and non-farm sectors. Based on the discussion with Project Director, NERLP and World Bank staff at New Delhi criteria (engagement, interest and capacity of the poor, possibility of engaging large number of poor, market demand, gestation period) was shared to shortlist five products i.e. potato, vegetables, fish, pineapple and pulses for carrying out value chain analysis. All the five shortlisted produce are suitable for MART, Noida 36
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both project districts. Activities such as rubber plantation and areca-nut have not been considered as it involves long gestation period and can be promoted as supplementary source of incomes. Project can also promote piggery, areca nut cultivation, rubber plantation, dairy and goatery among the poor in both project districts. Field experience shows that there is very little value-addition taking place at the producer level in villages leading to a large chunk of produce moving out of the village in the raw form. Value addition is generally taken up by players with high capital base located at higher order markets. However, simple aggregation at village level with rudimentary value addition activities like cleaning, sorting, grading, drying etc. can fetch higher price to the poor rural community.
4.2 Summary of suggested interventions
The table 16 below illustrates summary of suggested interventions in terms of size of activity suggested, convergence and partnership potential and key support to be provided by the project to implement value chains.
Table 16: Summary of suggested interventions for value chain activities.
Intervention Size of activity suggested Convergence Key support to and be provided by partnership the Project Produce Suggested Unit of Capital RoI potential / Product activity requirement (%) (Rs) Potato Potato 0.4 acre 15815 115 Wholesalers Organise poor in cultivation and retailers SHGs, federation using TPS and and producer improved Weekly markets group practices in both project Inputs suppliers Introduce districts collective action Progressive for input sourcing farmers and output Other option is marketing potato Financial cultivation institutions Capacity building using kufri on improved jyoti and kufri Horticulture package of chandramukhi department practices, seed variety Marketing Finance linkage agency Market exposure
Market linkages
Handholding support Vegetable Chili 0.4 acre 12050 103 Wholesalers Organise poor in Cultivation cultivation in and retailers SHGs, federation both project and producer districts Weekly markets group
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Intervention Size of activity suggested Convergence Key support to and be provided by partnership the Project Produce Suggested Unit of Capital RoI potential / Product activity requirement (%) (Rs) Inputs suppliers Introduce collective action Progressive for input sourcing Other options farmers and output are cabbage, marketing cauliflower, Financial tomato and institutions Capacity building radish for improved cultivation Horticulture package of department practices
Marketing Finance linkage agency Market linkages
Market exposure
Handholding support Fish Composite fish 0.4 acre 62326 41 Wholesalers Organise poor in culture in both and retailers SHGs, federation project Weekly markets and producer districts group Inputs suppliers Introduce Other options Progressive collective action are fish culture farmers for input sourcing with multi- and output stocking, pig Financial marketing cum institutions pisciculture, Capacity building poly culture of Fishery for improved prawn and department package of duck cum practices pisciculture Marketing using multi agency Finance linkage stocking Market linkages
Market exposure
Handholding support Pineapple Pineapple 0.4 acre 42396 147 Wholesalers Organise poor in cultivation and retailers SHGs, federation using and producer improved Weekly markets group package of practices in Inputs suppliers Introduce
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Intervention Size of activity suggested Convergence Key support to and be provided by partnership the Project Produce Suggested Unit of Capital RoI potential / Product activity requirement (%) (Rs) both project collective action districts NERAMAC, for input sourcing private and output processing units marketing
Progressive Capacity building farmers for improved Other option is package of juice making Financial practices institutions Finance linkage Horticulture department Market linkages
Marketing Market exposure agency Handholding support Pulses Black gram 0.4 acre 6195 151 Wholesalers Organise poor in using and retailers SHGs, federation improved and producer package of Weekly markets group practices in both project Inputs suppliers Introduce districts collective action Financial for input sourcing institutions and output Other options marketing are moong, Progressive lentil and pea farmers Capacity building cultivation for improved Agriculture package of department practices
Marketing Finance linkage agency Market linkages Market exposure
Handholding support
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4.3 Potato cultivation value chain
4.3.1 Background
Highly popular worldwide, potato is a versatile, carbohydrate-rich food prepared and served in a variety of ways. Freshly harvested potato contains about 80% water and 20 percent dry matter. About 60 to 80 % of the dry matter is starch. On a dry weight basis, the protein content of potato is similar to that of cereals and is very high in comparison with other roots and tubers. In addition, potato is low in fat, rich in several micronutrients, especially vitamin C. If eaten with its skin, a single medium sized potato of 150 g provides nearly half the daily adult requirement (100 mg) of vitamin C. Potato is also a moderate source of iron, and its high vitamin C content promotes iron absorption. It is a good source of vitamins B1, B3 and B6 and minerals such as potassium, phosphorus and magnesium, and contains folate, pantothenic acid and riboflavin. Potatoes also contain dietary antioxidants, which may play a part in preventing diseases related to ageing, and dietary fibre, which benefits health. In terms of total production of energy for human consumption, potato is one of the five major crops in the world, others being wheat, rice, maize and barley. On an average, potato yields two times more calories per unit area than any other cereal. (Source: www.potato2008.org)
Global potato production for the year 2005 was around 322 million MT, of which China dominated the World by contributing around 23% followed by Russian federation, India (8%), USA and Germany. Potato chips contribute around 85% to Indian snack food industry, one of the largest snack markets in the world and growing at the rate of 10%. India just exports around 0.5% of the total worlds export figuring around 7200 tons of potatoes to countries like Sri Lanka, Nepal, Mauritius, Singapore, UAE and Japan as most production is consumed in the country itself. Market influencing factors include fluctuations in the production levels in the country, fluctuations in the weather conditions, prices of competitive vegetables, demand level from the various areas of the country, development stages of the crop, transportation charges, hoarding and black-marketing.
As per horticulture department the vegetable cultivation has increased by about 62% in the last 7 years. One of the reasons for this is the decline in average landholding per farmer by over 50%; from 1.25 hectare in 1976-77 to 0.6 hectare in 1995-96 (economic review 2006-07 and 2008-09, Tripura). Due to fragmentation of landholding, farmers have shifted to horticulture crops. Potato is one such crop that is associated with agricultural diversification in last few years. The productivity of area under potato cultivation has marginally improved in the last few years due to prevalence of peasant and tribal mode of cultivation in the rural area.
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As per economic review 2008-09 of Tripura the total area of 5780 hectare under potato cultivation produced 0.87 lakh MT potato – a productivity of 15.07 MT/hectare. Though it is well below the national average of 18.8 MT per hectare, the availability is far below the demand in the state. Tripura imports potato from West Bengal. The introduction of new TPS (True Potato Seed) variety and improved package of practices are expected to replace the dependence on conventional seed-potato procured from outside the states besides generating income for potato farmers of Tripura.
There is lack of proper cold storage facility in the state that compels famers to sell horticulture produce immediately after the harvest at throw away prices resulting from glut in the market. Cold storage helps farmers get better prices during off seasons and income throughout the year. There are 4 cold stores under agriculture department in Tripura i.e. 500 MT potato cold storage at Teliamura, 2000 MT potato cold store at Baikhora and 2000 MT potato cold store at Kumarghat and 3500 MT multi chambered cold store at Melaghar. These stores are meant to store horticulture crops, but mainly store potato. Realizing the gap in storage facility, Government has proposed to construct 1000 MT capacity multi chambered cold storage at Satchand (South District).
4.3.2 Feasibility of Potato cultivation
Technical feasibility The agro-climatic conditions are suitable for potato cultivation in the state. A wide range of potato varieties such as True Potato Seed (TPS), Kufri Jyoti and Kufri Chandramukhi can be produced in the state. Farmers in the state have the basic skills for potato cultivation There are 7-8 cold stores with over 5000 MT capacity in the state to ensure better prices during off season and income spread throughout the year. Government support is available in terms inputs at subsidized rates, exposure and trainings and extension services. True Potato Seed that requires 50% less production cost and gives higher productivity is available in the state.
Market feasibility The demand for potato in the state is higher than the current production level. Therefore, a part of this demand especially in Agartala and towns area is met from West Bengal. There is well organized market structure in the state with two wholesale markets at Agartala (Maharajganj and Batala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and also 474 village level primary markets in the state where farmers can sell potatoes directly to local consumers. As per market sources, the last few years have recorded about 10-15% per annum increase in potato demand in Agartala wholesale market.
Economic feasibility The cost of investment is Rs 15,815 per 0.4 acre (1 kani) which is affordable for a small farmer. The overall income per unit is around Rs 18,111 with 115% return on investment. MART, Noida 41
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As per agriculture department TPS variety gives 25% higher productivity than other potato varieties.
4.3.3 Production clusters
Potato cultivation can be done throughout the state. It is mainly grown in plains than sloppy lands. As per available government data there has been marginal increase in area under potato cultivation over last few years; 5300 hectare in 2005-06 to 5780 hectares in 2008-09.
4.3.4 Major usage and byproducts
Potato is mainly consumed for making curries and snacks in daily food in the state.
4.3.5 Potato value chain
4.3.5.1 figure 4: Value chain Map for Potato
Consumers Consumers Consumers Consumers (Local market)
Retailers Retailers (Agartala) Retailers Retailers 14-15/kg (Agartala) (Subdivisions) (Agartala/Subdivision
Wholesalers Wholesaler Wholesaler Rs 12-13/kg (Agartala) (Agartala) Markets
Wholesale markets Villager level Kolkata traders
Farmers Farmers Rs 7-10/kg* (Outside state) (Within state)
Input Suppliers (Within state) Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
* The rates are given for potato coming from West Bengal. Potatoes are sold in the state throughout the year. Three to four months of demand (February to April) is met from local production and for the remaining period supply comes from West Bengal.
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The state is a net importer of potato; around 70% (45 to 60 MT) of supplies per day at Agartala wholesale markets come from West Bengal and the remaining 30% demand is met from local production. Majority of the local population consumes potato. Agartala with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004) is a huge market for potato consumption and depends on potato coming from both within the state and from West Bengal. Producers get only 50% of the value paid by the consumers; The remaining is taken by various channel partners. There are 474 village level primary markets in the state where farmers sell local potatoes directly to the consumers. From wholesale market potato goes to two districts i.e. South Tripura and West Tripura. In the remaining two districts of Dhalai and North, potatoes come from Dharmanager wholesale market (North Tripura) and Silchar (Assam) wholesale market.
4.3.5.2 Stakeholders and their roles
4.3.5.2.1 Input suppliers
The main inputs required for potato cultivation are seeds, fertilizer, pesticides/weedicides, and agri implements. The suppliers of these inputs are located at block, sub division level and at Agartala What is True Potato Seed (T.P.S.) wholesale markets. All inputs are available in the state and except TSP seeds, which are available Tripura potato implies tiny botanical seeds of potato. locally, all other inputs are procured by wholesalers Potato, which is known as True Potato Seed, is obtained by the hybridization of two parental lines of potato. It is a from other states. Agriculture department provides substitute of the traditional tubers. TPS and other inputs at subsidized rates to farmers.
4.3.5.2.2 Farmers practices
4.3.5.2.2.1 Input sourcing
Farmers procure inputs from government stores and also from nearby open markets. Farmers face problems in timely procurement of inputs from government stores and therefore they pay upto 1.5 to 2 times of market prices particularly for chemical fertilizers. Farmers pay 50% upfront and 50% on credit and repay it after the harvest. Famers procure TPS seeds from local government offices. Farmers have reported that quality of seeds available from open markets is sometimes not good so they prefer to buy it from government sources or from big wholesalers in Agartala and sub divisions. Irrigation is done two times from river or ponds. Farmers either use their own pump sets or hire it. Big farmers have installed electric run mechanism for lift irrigation and they pay nominal amount towards annual electricity charges.
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4.3.5.2.2.2 Production practices and technology used
Potato is grown in plains and therefore its cultivation is not undertaken in areas of undulating land. Potato cultivation is done in 0.2 acre to o.4 acre of land from November to January. There is an increasing trend towards using power tiller for land preparation that is normally used two times as it saves time and is affordable. Small farmers also use bullocks for ploughing purpose.
Farmers practice lifts irrigation. Irrigation is required twice – at the time of land preparation and during the production phase. Farmers use hybrid TPS and certified potato seeds available in the market. Some farmers directly sow seeds and some prepare seed bed and transplant the seedlings. Every farmer follows line sowing and maintains distance between lines and between two plants. Generally True Potato Seeds (TPS) are used by farmers which are available from Government stores. TPS can be grown three times a year. Farmers from their first and second harvest store some potatoes in cold storage for use in next season as seeds. Sowing time is November and December and the harvesting period is January and February. Other varieties grown include Chandramukhi and Joyti grown in West Bengal. Some farmers even follow inter culture and grow sweet gourd and pumpkin in the land left between two lines. Potato farmers use both chemical fertilizers and organic fertilizers (cow dung and mustard oil cake as organic manure) at the time of land preparation. Some farmers use bio-fertilizers. Urea is used in split doses once at the time of land preparation and next after the vegetative growth of the plant.
The adoption of scientific practices is low among small and marginal farmers which results in lower yields. For example, against the government recommended dose of 9.60 kg of phosphate in 0.4 acre of land, potato farmers use almost four times (35.48 kg) resulting in higher input costs as they believe that
Package of practices for production of Potato using T.P.S. (source: Agriculture department)
Raising Seedling: Seeds are sown at 0.5 cm depth in raised nursery beds (6 inches or 15 cm) prepared to good tilt with finely powdered dry cowdung in rows at 10 cm apart under shade and it is watered. Apply foliar spray 0.01% Urea solution from 15th day after sowing on alternate days till the seedlings are ready for transplanting (25 to 28 days) with 3 to 4 leaf stage. Care should be taken against termite and damping-off.
Cultivation in the main field: Prepare the main field to a good tilt. After leveling apply fertilizers in 75:100:150 kg. NPK per hectare. Make ridges (6 inches or 15 cm. height) furrows at 50 to 60 cm. apart in east - west direction. Irrigate the furrows to 3 inches or 7.5 cm height. Transplant the seedlings on the next day on the northern side of ridges at half the height at 15cm apart. On 35th day apply 75 kg nitrogen per hectare after weeding and earthing up is done in such a way that the plants come up on top of the earth. Provide irrigation as and when required.
What is tuberlet? Small tubers upto 20 grams size used as seed tuber. Seed tuber requirement could be brought down to one-third by using tuberlets.
TPS tuberlet production practices: At present there are two methods in practice for producing seedling tubers in bed 1. Single Row Method 2. Double Row Method
Single Row Method: Prepare beds of 6 inches or 15 cm. height, 1 mt. width and according to convenient length" at 0.75 cm apart. Bring to good tilth mixing with finely powdered well-rotten dried cow dung. Apply Urea, S.P and M.O.P. @ 20 gms, 60 gm & 25 gm./ sq.mt. respectively as basal dose. Sow 2-3 seeds per hole at 0.5 cm. depth with 20 cm. X 5 cm. spacing. Provide shade to avoid scorching sun and irrigate the beds with fine rose cane as per necessity. Earth up with the mixture of finely prepared soil and cow dung along with urea @ 5 gms./sq. mt. at 30th , 45th and 60th day. Cut the haulms on 85th day. During the Whole production period, need base spraying with P.P.C. should be undertaken. Treat the Tuberlets with 3% Boric-acid and store in cold storage for next year after proper drying in shade.
Double Row Method: Preparation of field and other operation are the same. However, in Double Row method seeds are sown 4 cm. apart in a line and row to row distance is 10 cm. In between two double row distance is 30 cm. Top dressing with 5 gm urea per sq.mt. on 30th , 45th and 60th day followed by earthing up as practiced in normal crop so that two lines can be covered by a single furrow. MART, Noida 44
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phosphate is the most important nutrient for getting higher yield. Against a recommended yield of 25 MT per hectare for TPS seed small and marginal farmers get 15 to 20 MT per hectare only. Farmers who possess land near river side record higher productivity.
4.3.5.2.2.3 Market access
Farmers sell potatoes in local weekly haats, to local traders and wholesalers at Agartala and subdivision markets. Poor farmers keep a small quantity as seed for the next season and don’t face any problem in selling the remaining produce as markets are generally located within 20 km to villages. Big farmers store produce in cold stores and sell it during the off season fetching higher prices. All transactions are done in cash. However, credit is available for inputs which farmers repay after the harvest. The average price received by farmers is Rs 800- 1000 per quintal.
4.3.5.2.3 Retailers
Retailers are located in villages, blocks, sub divisions and Agartala. At Durga Chowmuhani retail market in Agartala there are 30 retailers registered with the local municipality. One time registration fee is Rs. 28,000 and per month charge (tauji) is Rs. 250. Retailers procure potatoes from the wholesale markets in the morning hours from 6am to 7am and in the afternoon from 1pm to 4 pm. They sell potatoes from 7 am to 12 noon and in the evening from 5pm to 9 pm. Transportation from wholesale market to retail market in the town area is Rs 10 per bag of 50 kg. Retailer also pays Rs. 4 to Rs. 5 as labour charges per bag for loading at wholesale market and Rs. 3 for unloading at retail market. Retailers generally sell in cash to consumers but sometimes offer credit facility without any interest. One retailer brings 4-5 bags of 50 kg each per day. Total sale of one retailer varies from 150 - 250 kg per day.
4.3.5.2.4 Wholesalers
There are two potato wholesale markets in Agartala: Maharajganj Bazar (Gole Bazar) and Batala Super Market. Potato wholesalers also deal in onion business. There are 21 wholesalers at Maharajganj market and 4 wholesalers at Bartala market. . A total of 45–60 MT quantity per day comes by truck from West Bengal and by local transport from Guwahati. 70 to 80% quantity comes from Dhupguri (Dhupguri variety), 20% comes from Hoogly (Kolkata Jyoti variety) and (1 to 2) % comes from Kolkata (Chandramukhi variety). It comes in packages of 50 kg per bag. Local potato production covers 30-35% of total demand of Tripura State for three to four months (i.e. from February to April). Local potato in Agartala comes from sub division markets at Bikhora, Julaibari (South Tripura) Melaghar, (Sonamura), Teliamura, Mohanpur, Bishalgarh (West Tripura). Wholesalers stock local potato in cold storage at Agartala and villagers store potato in local cold storages (i.e. at Bikhora and Melaghar) and sell it when demand is high in the market. Rate for cold storage is Rs 100 to Rs 110 per quintal for one season of up to 6 months. . There are seven to eight cold storages in Tripura. Out of these seven stores three cold storages are located at Agartala Bhutaria Cold Storage (Private)
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Sherawali Cold Storage (Private) Apex Cold Storage (Govt. undertaking)
4.3.5.2.5 Transporters
Transporters are located at the source points at various locations in Uttar Pradesh, West Bengal and other states from where agriculture inputs come. From Kolkata to Agartala for one truck (10 wheelers) of 15 MT, cost of transportation per quintal comes to Rs. 560 and other operating expenses come to Rs. 40 per quintal. From Dhupguri to Agartala the cost comes to Rs. 430 per quintal and other operating expenses are Rs 25 per quintal. It means transportation cost comes to Rs 4 to Rs 6 per kg. Wholesalers at Agartala directly contact wholesalers in West Bengal and bear transportation cost from West Bengal to Agartala. Labour charge for loading potato at Kolkata is Rs 2.50 per bag. Within the state local transport cost is borne by retailers. Labour charges for unloading and loading of potato bags at Agartala come to Rs. 1.25 to Rs. 3.50 per bag. Farmers from local sub-divisions come to local haat and sell to local traders. Local traders purchase potato from farm gate and weekly markets, package it and then supply to wholesale markets. Trader’s packaging and transportation cost per quintal comes to Rs. 70.
4.3.5.2.6 Consumers
A majority of the population of the state consumes potato. Consumers generally purchase potatoes once or twice in a week from nearby weekly markets and daily markets in towns. Consumers prefer Kufri and True potato variety and purchasing is done in cash. Dhupguri variety is the cheapest among all varieties and is sold most in Agartala. Price paid by consumers varies from Rs 14 to Rs 20 (refer the table) depending upon potato variety, size, sorting and grading and also timing of purchase. In the morning prices are high and it reduces as the day progresses. Price of potato varies over a period of time in the year due to price fluctuation. Table 17: Potato variety and market prices
Potato variety Farmer to wholesaler (Rs Wholesaler to Retailer Retailer to consumer per kg)* (Rs per kg) (Rs per kg) Dhupgari 6-8 12 14-15 Kolkata Jyoti 5-7 13 16 Chandramukhi 8-10 15-16 18-20 Source: field survey at wholesale and retail market in Agartala * Based on information shared by wholesaler at Maharajganj wholesale market
4.3.5.2.7 Constraints-Solution Matrix
The table a8 below illustrates constraints faced by farmers for key livelihood factors and critical intervention points to overcome constraints. MART, Noida 46
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Table 18: Constraints faced by farmers and intervention points.
Factor Constraints faced by small farmers Critical intervention points Input sourcing Potato seeds from the government Establish a formal arrangement with department are not available on time the agriculture department for which forces farmers to procure them ensuring timely supply of potato seeds from open market. and fertilizers to farmers. Availability of fertilizers Organise farmers to procure inputs is low when the demand is high as a collectively to negotiate better prices result prices group by 50-200% in and reduce overhead costs. Farmers peak demand times. can procure inputs well in advance of The state is fully sowing season. dependent on other states for supply List out input suppliers at Agartala of fertilizers and pesticides. Traders and sub division markets and establish indulge in hoarding. tie ups with them for timey Farmers are not educated so they find procurement of inputs. problem in reading the names of pesticides so they go by the advice of retailers who sometime offer duplicate products as well. Production Land in some places is Promote potato cultivation after practices and not fully suitable for growing potato. suitable technical assessment of the technology In some villages pump sets are not area with support of agriculture used available and farmers have to hire department. them from other villagers @ Rs 80 per Establish linkage with local banks and hour. government schemes such as SGSY to Extension services from agriculture help famers in accessing loan for department are not available on time. purchasing pumpsets and other Farmers don’t upgrade their skills and improved equipments. knowledge regularly resulting in low Create village level cadre of technical yields. For example, as against persons to provide paid technical prescribed yield of 25MT per hectare services to farmers. for TPS farmers get 15-20MT per Regular training and exposure visits to hectare. best practitioners in the local area can help poor farmers. Access to Inputs from the government Appoint implementing agencies and support department are not available on time develop village level service providers services and the quality of inputs procured to help famers link with need based provided by from private players is doubtful. government schemes and private government Farmers who took one-time training services. and private from agriculture department didn’t Develop village level cadres to help agencies get the desired yield. By hit and trials extend technical services to farmers. approach they develop package of Set up new cold stores after feasibility practices. study. Cold storages are very far and few. Use of latest machines and tools such The labour cost is high at Rs 150 per as power tiller work faster and saves MART, Noida 47
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day due to availability of works under cost. NREGA at Rs 100 per day. Access to Availability of timely and right Organize poor famers in SHGs to link finance amount of credit is an issue. Bank them with local banks to ensure their loan requires a lot of paper work and financial inclusion. farmers’ don’t have proper papers Develop partnership with financial against their land. institutions and MFIs and encourage MFIs working in the area provide loan them to develop loan product for but their loan products don’t match potato cultivation based on its expectations of farmers. economics. Market access Farmers sell individually to the There is scope for collectivizing retailer/wholesaler resulting in higher farmers to sell collectively and directly overhead marketing costs to higher order markets at sub division Farmers get 50% of value paid by the towns and Agartala for better price final consumers realization. Cooperation There is low affinity among farmers Guide farmers for collective sourcing among farmers for collective action for sourcing of of inputs and marketing to reduce and inputs and sale of potato resulting in operational costs. institutions higher operating costs. building Govt. policies Blockage of roads and civil unrest may Inclusion of poor tribal and and external lead to increase in input costs and development of local market system ecosystem market failure making potato will reduce dependence on external cultivation unviable. markets.
4.3.6 Project Intervention
Project can promote potato cultivation to be taken up by an individual family. Individual farmer will do the production but sourcing of inputs and marketing can be done collectively. Project need to work on strategies and capacity building inputs suggested in the previous section and by adopting an implementation plan described later. Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.3.6.1 Economics of potato cultivation using TPS
Assumptions Calculations have been done for 1 kani (0.4 acre or 0.16 hectare) of land for TPS potato cultivation activity. Cost of various inputs and outputs are based on information collected from villagers, market players and agriculture department. Agriculture department has provided cost of cultivation for 2009-10. The rate of interest for bank loan is taken @ 1% per month. Bank loan is considered for three months. The wholesale price of potato is taken as Rs 8/kg.
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Table 19: Economics for potato cultivation Particular Unit Quantity Unit Total Price(Rs) Amount(Rs) Income Sale of potato Quintal 4000 8 32,000 Cost Tillage operations cost Lump sum 1 1600 1600
Irrigation Lump sum 1 560 560
Seed cost Kg 0.02 16000 320 Use of fertiliser 0 MOP Kg 38 6 228 Single Super Phosphate (SSP) Kg 100 6 600 Urea Kg 54 5.75 310.5 Farm Yard Manure (FYM) Kg 3200 0.33 1056 Plant protection measures Lump sum 1 100 100 Labour involvement Man days 30 100 3000 Marketing expenses Commission to agent Commission 32000 0.07 2240 Transportation to nearby market Trip 1 1000 1000 Packaging and bagging Number 80 10 800 Miscellaneous Lump sum 1 1000 1000 Total running cost 12,814.5 Net Income 19185.5 Depreciation 600 Profit before interest 18,586 Interest (12%) 3% 15,815 474.4 Net profit 18111
ROI 114.52% Payback period (year) 0.82
Fixed capital, working capital and total capital requirement Fixed capital Unit Unit price Total amount Life (in Depreciation (Rs) (Rs) year) (Rs) Farm equipments/tools 1 2,000 2,000 5 400 Miscellaneous 1,000 5 200 Total fixed capital 3,000 600
Working capital 12,815 requirement
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Total capital requirement 15,815
Sensitivity analysis for potato cultivation Parameters Unit Impact on unit Profit before or cost interest What if selling price falls by 20% Rs/kg 6.4 12185.5
What if costs go up by 20% Rs total 15377.4 16,023
What if business volume goes down by 20% Number 3200 12185.5
What if selling price goes up by 20% Rs/kg 9.6 24985.5
What if costs fall by 20% Rs total 10251.6 21,148
What if business volume goes up by 20% Number 4800 24985.5
4.3.6.2 Comparative analysis of various possibilities
Table 20: Inputs costs and income for potato varieties
Input Production Rate/kg Income Net RoI cost income (%) 1. Potato (TPS) 12814.5 4000 kg 8 32000 18111 115.52 2. Potato (Kufri Jyoti, Kufri 14261 3200 kg 8 25600 10221 59.22 Chandramukhi ) Source: agriculture department data and field survey Note: Net income is calculated after deducting input cost, depreciation and interest from gross income.
4.3.6.3 Possibility of setting up processing unit
Potatoes can be processed into potato chips and papad. However, setting up such processing units at the village level would require entrepreneurial skills among poor, marketing and technical skills, and ensured market linkages with bulk buyers to sustain such processing units. The demand at the village level would be low and marketing of products outside the village would require successful marketing interventions such as proper packaging and branding, and linkages with wholesalers and retailers. It is, therefore, suggested that for first couple of years poor (both individuals and groups) should encouraged for potato production, productivity enhancement and market linkages as supply of potatoes in the state is less than its demand. After couple of years project can identify few individuals with entrepreneurial skills to experiment setting up few processing units. Project staff with marketing skill could be involved for conducting the detail feasibility study before setting up such units.
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4.3.6.4 Implementation plan for potato cultivation promotion
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level (3 months) Cluster selection Select the right cluster in both project districts for initiating potato promotion based on technical feasibility. Identify target block, village and the community. Social mobilization Sensitize potato farmers on potential of potato cultivation using TPS as and institution emerged from the findings of value chain analysis described earlier and building their impact on livelihood. Share various possibilities of potato cultivation, its cost benefit analysis, and assess community interest level to take up the activity. Identify the members/groups to start potato cultivation as a new unit. Initially only a limited number of groups should be encouraged to start the activity. Based on the results of pilots add more members. List out members separately who are already doing the activity and want to either expand or strengthen the activity. Initiate participatory discussion to arrive at consensus on roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for potato cultivation in consultation with business plan the community detailing the economics of the activity, sourcing of inputs, linkages with market players, production practices and technology to be used, and government schemes to be availed. Capacity building Leadership training for group members–functions and responsibility to interact with external players. Training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis) to members using participatory techniques. Technical training on better practices, exposure visits to nearby best practitioners and outside the states as well. Identify suitable government and private agencies that can provide need- based technical and business training at the community level. Identify local level best practitioners. Phase II – Establish backward and forward linkages (6 months) Backward linkages Counsel farmers to procure raw materials including machines and equipments collectively in bulk to reduce operational costs. List out major inputs suppliers for ensuring quality of inputs and timely availability. Systematize training management. Establish finance support for potato cultivation on unit cost basis. Production Implement best practices. Clarity of roles, specialization and continuous skill improvement Bring quality control in production to achieve efficiency, higher productivity at lower costs.
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Better record keeping and financial management. MIS development and multidimensional intervention opportunity. Market access Identify suitable and multiple markets and prepare list of market players with their contact details. Engage in bargaining, marketing of produce and realize better price. Clarify on profit sharing and funds rotation among members in case of group activity. Build System for collaborations and employment Phase III – Up-scaling (9-12 months) Monitoring and Set up regular follow up and monitoring system to evaluate units from evaluation time to time to finds out gaps, take corrective steps and ensure delivery of appropriate extension services. Strengthening Facilitate secondary institution (producer group) to upscale and sustain Institution the initiative. Plan capacity building for strengthening of secondary institutions Diversify activities to increase income Create village level cadres to extend technical and marketing inputs to community at village level. Provide handholding and technical support to secondary institution Legal aspects Compliance to legal implications for excise, sales and VAT (once activity achieves scale it would be required to source inputs directly from outside the state).
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4.4 Vegetable Cultivation Value Chain
4.4.1 Background
Vegetables are the excellent source of vitamins, particularly niacin, riboflavin, thiamin and vitamins A and C. They supply minerals such as calcium and iron besides proteins and carbohydrates. They thus make an essential part of our food basket. Tripura grows a large variety of vegetables. Most vegetables, being short duration crops, fit very well in the intensive cropping system and are capable of giving high yields and better economic returns to the growers.
Food and Agricultural Organization (FAO) predicted that the world population would be eight billion by the year 2030 and therefore, the demand for food wouold increase dramatically. While global population has increased over 70 per cent, per capita food consumption has been almost 20 per cent higher. Asia is the leading producer of vegetables with a 61 per cent total volume output and a yearly growth of 51 per cent. However, the U. S. continues to lead the export of fresh fruits and vegetables worldwide with orange, grapes and tomatoes. The top six fruit producers, in declining order cof importance are China, India, Brazil, USA, Italy and Mexico. China, India and Brazil account for almost 30 per cent of the world’s fruit supply, but since most of this production is destined for domestic consumption its impact on world trade is minimal.
Agriculture and allied sector is the backbone of the state’s economy. Tripura is a sub tropical and tropical zone and produces numerous fruits and vegetables round the year. A total of 3.10 lakh MT (refer table) of vegetables are produced every year. The state has recorded 62% increase in vegetable production in the past seven years. The reason behind growing preference for vegetable cultivation is the decreasing land holding. From 1.25 hectare average landholding per farmer in the state in 1976-77 to 0.6 hectare in 1995- 96 (economic review 2006-07 and 2008-09, Tripura) there is 50% reduction in average landholding in the state. Small landholding doesn’t provide sufficient income from agriculture making farmers shift to other farm activities to sustain their family. Horticulture in the state has thus seen a spurt in recent years.
Crops Area Production Productivity (in thousand ha) (lakh MT) (MT/ha) Summer vegetables 13.78 1.44 10.48 Winter vegetables 12.71 1.66 13.09 Total 26.49 3.10 11.70 Source: Economic review 2008-09
The state population is estimated to reach 38.30 lakh by 2015 as a result demand for foodgrains, fruits, vegetables, dairy products and meat will also increase. Since the state is a net importer of farm produce, it MART, Noida 53
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would be necessary to increase its farm productivity, especially vegetables. Currently factors impeding farm productivity in the state are limited irrigation facilities, limited storage facilities, absence of organized retail trade, especially of the fruits and vegetables, poor quality control and outdated farming techniques. In the absence of proper post-harvest management nearly 30% crop gets wasted –a loss of nearly Rs 400 crore every year.
Vegetable cultivation in Tripura has shifted from homestead to large scale commercial cultivation. There is a growing preference for hybrid varieties due to their higher productivity. Yet, the state depends on vegetables coming from Assam, West Bengal and Meghalaya to meet its demands. It is expected that cultivation of off season vegetables like summer cabbage, cauliflower, and tomato will provide much higher return per unit area to the vegetable growers of the state.
4.4.2 Feasibility of vegetable cultivation
Technical feasibility The agro-climatic conditions are suitable for vegetables cultivation in the state. A wide range of vegetables such as tomato, chili, cauliflower, radish, cabbage, and spine gourd etc. can be produced in the state. Farmers in the state have basic skill for vegetables cultivation. There are 7-8 cold stores with over 5000 MT capacity in the state to stock vegetables for sale in the off season and income spread throughout the year. Government support is available in terms inputs at subsidized rates, exposure and trainings and extension services.
Market feasibility The demand for vegetables in the state is higher than the current production level. Therefore, a part of this demand especially in Agartala and towns area is met from Shillong and Guwahati. There is organized market structure in the state with two wholesale markets at Agartala (Maharajganj and Batala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and also 474 village level primary markets in the state where farmers can sell vegetables directly to local consumers. As per market sources, the last few years have recorded over 10% per annum increase in vegetable demand at Agartala wholesale markets.
Economical feasibility The cost of investment for chili production is Rs 9050 per 0.4 acre (1 kani) which is affordable for a small farmer. The overall income is 22,400 with 103% return on investment. Farmers use vegetables for self consumption that provides nutritional security thus saving cost to the family.
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4.4.3 Production clusters
Vegetables can be grown throughout the state. It gives higher productivity in plains compared to sloppy lands. The major vegetable growing areas in the state are Teliamura, Bishalgarh, Sonamura, Meleghar, Mohanpur, and Narsingarh.
4.4.4 Major usage and byproducts
Vegetables are mainly consumed for making curries and snacks in daily food in the state. 4.4.5 Value chain for vegetables
4.4.5.1 Value chain Map for vegetables
Consumers Consumers Consumers (Local markets/haats)
Rs 50-60/kg Retailers Retailers Retailers (Agartala) (Sub divisions) (Agartala/Subdivisions
Wholesalers Wholesalers Rs 40-45/kg (Agartala) (Subdivisions)
Wholesale markets Shillong/Guwahati
Farmers Rs 20-25/kg* Farmers (Outside state) (Within state)
Input Suppliers (Within state)
Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
* The rates are shared by wholesalers and retailers for Chilli coming from Shillong and Guwahati. Vegetables are sold in the state throughout the year. The state is a net importer of vegetables: around 30 to 40 MT of supplies (tomato, cabbage, cauliflower, carrot, green chilli, and cucumber) per day at Agartala wholesale markets come from Shillong and Guwahati from June to October. These are off season vegetables and are grown during winter season in the state from November onwards. 25-30MT vegetables every day come from within the state to Agartala.
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From wholesale market at Agartala vegetables are supplied to mainly two districts i.e. South Tripura and West Tripura. In the remaining two districts of Dhalai and North Tripura vegetables come from Dharmanager wholesale market (North Tripura) and Silchar (Assam) wholesale market. There are 474 village level markets in the state where farmers sell locally grown vegetables directly to consumers. Producers get nearly 40% of the value paid by the consumers; the remaining is taken by various channel partners. Agartala, with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004) is very large vegetable market and gets supplies from both within the state and from Shillong and Guwahati. Transportation cost from Guwahati and Shillong to Agartala come to Rs. 2 to Rs 4 per kg depending upon the quantity transported. Higher the quantity transported lower is the transportation cost.
4.4.5.2 Stakeholders and their roles
4.4.5.2.1 Input suppliers
The main inputs required for vegetables cultivation are seeds, fertilizer, pesticides/weedicides, and agri implements. The suppliers of these inputs (government and private players) are located at sub division level and at Agartala wholesale markets. Water for irrigation is available from ponds and rivers. All inputs are available within the state and can be procured from local wholesalers. Agriculture department provides fertilizers through it local stores at sub division level.
4.4.5.2.2 Producers
4.4.5.2.2.1 Input sourcing
Farmers depend on private players and government agencies for purchasing agriculture inputs. They procure hybrid vegetable seeds, pesticides and agriculture implements from local retailers. Seeds are available under various government schemes as well. Fertilizers are procured from local government stores and open market. However, availability of fertilizers in government stores is not regular and sufficient, as a result farmers have to depend on the private retailers and wholesalers who take advantage of short supply and sell them at 1.5 to 2 times higher than government prices. Cow dung is available locally within the village itself. Farmers procure it individually just before the production season starts. They purchase inputs in cash but also get it on credit and repay the amount immediately after the harvest. For inputs purchased on credit, farmers pay higher prices. MFI such as Bandhan and Basix operate in the area and extend loan products for income generation and the effective rate of interest is over 30% per annum. Farmers either own or hire pump sets for irrigating their farms from rivers or ponds. Big farmers have practice lift irrigation. Tripura has nominal rates for agriculture electricity consumption.
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4.4.5.2.2.2 Production practices and technology used
Farmers grow vegetables throughout the year in small portions of land in 0.1 acre to 1 acre. Vegetables grown commonly are brinjal, tomato, cabbage, cauliflower, bitter gourd, beans, and chilli throughout the year. The production is higher during September to February as more farmers get engaged in the activity. The same land is used 3-4 times to grow different varieties of vegetables. At a time farmers grow several types of vegetables. Land preparation is also done 3-4 times depending on the number of times the crop is harvested.
There is an increasing trend towards use of power tiller as it saves the time and is affordable. It is used for land preparation that is normally done two to three times and costs Rs 150 per hour per kani(0.4 acre). Vegetable farmers use both chemical fertilizers and organic manure (cow dung and mustard oil cake) at the time of land preparation. Chemical fertilizers used are super phosphate, di-ammonium phosphate, muriate of potash and urea. Urea is used in split doses whereas other fertilizers are used during land preparation. Plantation is done in two ways: either the farmers prepare the seed bed to grow seedlings and transplant them to fields when ready, or buy the seedlings from the market or fellow farmers and transplant them in the field. Pesticides are used 2-3 times only after a pest is spotted. This however, affects the crop productivity. Though farmers attend training and exposure programmes organized by horticulture department, practice of the recommended measures is low.
4.4.5.2.2.3 Market access
Farmers sell an overwhelming quantity of vegetables directly to wholesalers at sub division markets and Agartala. A small percentage of vegetables are sold to local traders who visit villages and also in local weekly markets (haats). Transactions are mainly in cash. As vegetables are perishable, farmers are in compulsion to sell them immediately. This vulnerability hampers in negotiating better prices. Farmers who sell directly in weekly markets realize higher return during the morning hours when demand is high. By evening prices come down as farmers are in hurry to sell off whatever produce is left with them.
4.4.5.2.3 Wholesalers
There are two vegetable wholesale markets in Agartala; Maharajganj Bazar and Batala. There are around 35 wholesalers cum commission agents in Maharajganj Bazar and 20 wholesalers cum commission agents in Batala market.
Vegetables such as tomato, cabbage, cauliflower, carrot, green chilli, and cucumber come from Shillong and Guwahati to Tripura for 4 to 5 months (June to October) in a year. These are off season vegetables so their prices are high during this period. However, as the supply starts coming from within the state prices come down. The supply from within the state is throughout the year. About 15-20 MT of vegetables come from Shillong and Guwahati per day by truck at Maharajganj Bazar and 10-15MT at Batala market. It takes 2 days for truck to reach the Agartala markets. Maharajganj Bazar is a bigger wholesale market where 70% of vegetables come and Batala trades in 30% vegetables daily. From wholesale markets vegetables are supplied to South District and West District also.
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As per wholesalers, around 25-30 MT vegetables come to Maharajganj Bazar and Batala market from sub division level markets in West and South district such as Melagarh, Sonamura Bishalgarh, Teliamura and Mohanpur and South District. In North district and Dhalai district local vegetables are sold in local markets and some quantities go to Dharmanagar wholesale market and to Karimganj and Silchar (Assam). Commission agents take 7% commission from farmers who sell in the wholesale markets. Wholesalers buy in cash and sometimes on credit.
4.4.5.2.4 Retailers
There are nearly 200 registered retailers in Maharajganj markets and nearly 150 registered retailers in Batala retail market. Retailers procure vegetable from wholesalers in the morning hours from 6 am to 7am and from weekly markets (haats) from 11 am to 4 pm. Retailers sell vegetables in retail markets from 7 am to 12 noon and in the evening from 5 pm to 9 pm. Retailers also bring vegetables from local weekly markets where farmers bring vegetables directly in shared four wheeler mini truck. One retailer brings 40-50 kg per day from wholesale. Retailers pay Rs 10-25 per quintal as transportation cost within the city area. They also pay Rs 8 to Rs 10 as labour charge per bag towards loading and unloading. Wholesalers sell to retailers in cash and sometimes on credit.
4.4.5.2.5 Transporters
Transporters are located at Guwahati and Shillong. Once the deal is agreed upon between wholesalers on both sides Tripura wholesalers hire transport services to deliver vegetables at Agartala. As per information shared by transporters, vegetables are generally transported in 6 wheeler truck that carries 8.5 MT to 9 MT per trip. The distance from Guwahati to Agartala is 600 km and from Shillong to Agartala it is 450 km. It costs Rs 400 per quintal from Guwahati to Agartala and Rs 350 per quintal from Shillong to Agartala. Local transportation charge within the state is Rs. 50-70 per quintal. The total transportation cost come to Rs 30,000 to Rs 36,000 per trip. In case of a 10 wheeler truck, carrying 15 MT vegetables, transportation cost from Guwahati to Agartala is Rs 28,000 to Rs. 30,000. Mini 4 wheeler trucks carrying 3 MT to 4 MT costs Rs 13,000 to Rs. 15,000. Transportation adds up Rs. 2 to Rs 4 per kg to the total cost depending upon the quantity transported. Tomatoes are transported in wooden packs of 27-28 kg. Cauliflowers come in pack size of 30-35 kg per bag. Cabbages come in loose. Labour charge per quintal is Rs. 8; Rs 4 per bag for loading at source point and Rs 4 per bag for unloading at destination point.
4.4.5.2.6 Consumers
Majority of the population of the state consumes variety of vegetables. Consumers generally purchase vegetables once or twice a week from nearby weekly markets and daily markets in towns. Prices of vegetables fluctuate on daily basis and are guided by supply and demand situation. As the local produce enters the market, the prices of off season vegetables come down. The table below shows that the retail price of chilli coming from Guwahati has falls from Rs 50-60 per kg to Rs 40-50 as local produce enters the market. Price paid by consumers also varies from vegetable to vegetable depending upon the variety, size, and time of purchase.
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Table 21: Wholesale and retail prices of vegetables
Agartala Vegetables Wholesaler to Retailer Retailer to Consumer wholesale (Rs per kg) (Rs per kg) markets Vegetables Tomato 25-30 35-40 coming from Cabbage 18-20 22-25 outside the Cauliflower 40-45 45-50 state (1st and Carrot 40-45 45-50 3rd October Green Chili 40-45 50-60 2010) Cucumber 15-20 22-30 Vegetables Spine Gourd 22-25 30 coming from Ridge Gourd 25-30 35-40 within the Pointed Gourd 20-25 30 state such as Cucumber 20 25-30 Teliamura, Cooking Banana 4-6 (per 4 piece) 8-10 (per 4 piece) Bishalgarh, Bitter Gourd 22-25 30 Sonamura, Sweet Gourd 22-23 30 Meleghar, Bottle Gourd 20-25 (per piece) 25-30 (per piece) Mohanpur, Arum 20-25 (per piece) 25-30 (per piece) and Brinjal 30-35 35-40 Narsingarh Lady’s Finger 30-35 35-40 (5th October Ash Gourd 20-30 (per piece) 25-35 (per piece) 2010) Radish 6-10 (per 4 piece) 10-15 (per 4 piece) Green Chili 30-35 40-50 Source: field survey in wholesale and retail markets
4.4.5.2.7 Constraints-Solution Matrix
The table 22 below illustrates constraints faced by farmers for key livelihood factors and critical interventions points to overcome constraints.
Table 22: constraints faced by farmers and critical interventions points Factor Constraints faced by marginal and Critical intervention points small farmers Input sourcing • Often quality of the seeds available in List out input suppliers at Agartala the open market is not good that and sub division markets and results in low productivity. establish tie ups with them for their Availability of fertilizers is low when timely and quality procurement. the demand is high as a result prices go Organise farmers to procure inputs up by 50-200% in peak demand times. collectively to negotiate better prices The state does not have its own supply and reduce overhead costs. Farmers of fertilizers and pesticides. This can procure inputs in bulk well in promotes hoarding by local traders advance of sowing season. and high prevalent rates of farm inputs. MART, Noida 59
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Farmers travel to Agartala and subdivision towns adds to operational costs. Production Land in some places is not suitable for Vegetable cultivation should be practices and vegetable production due to low soil promoted after suitable technical technology fertility. assessment of the area with support used Inadequacy of government tube wells of agriculture department. for irrigation and their maintenance Develop village level cadre of affects productivity.In ADC villages technical persons to provide paid farmers have to hire pump sets at the services to farmers. rate of Rs 80 per hour to irrigate their Regular training and exposure visits sloppy fields. Extension services from to best practitioners in the local area agriculture department are not can help poor farmers. available on time. Linkage with local banks and Farmers don’t upgrade their skills and government schemes such as SGSY knowledge regularly resulting in low can help famers in accessing loan for yields. purchasing pumpsets and other equipments. Access to Availability of timely and right amount Organise poor farmers in SHGs to finance of credit is an issue. Bank loan requires link them with local banks to ensure a lot of paper work and most farmers’ their financial inclusion. don’t have proper papers for their Develop partnership with financial land. institutions and MFIs and encourage MFIs working in the area provide them to develop loan products for loans but their loan products don’t vegetable cultivation based on its unit match with market realities. cost. Market access Farmers sell individually to the Scope for collectivizing farmers to retailer/wholesaler resulting in higher sell collectively and directly to higher overhead marketing costs order markets at sub division towns Farmers get 40% of value paid by the and Agartala for better price final consumers. realization. Access to Quality of inputs especially seeds and Appoint implementing agencies and support pesticides procured from private develop village level service providers services players are doubtful. to help famers link with right private provided by Poor or inadequate adoption of players to access quality inputs and government scientific farming techniques need based government schemes. and private imparted by agriculture department Promote use of latest machines and agencies severely affects the yield. tools such as power tiller that work Availability of works under NREGA at faster and saves cost. Rs 100 per day has pushed labour Set up new cold stores after the costs to as high as Rs 150 per day. feasibility study. Cold storages are few and far away due to which farmers are unable to use it. Cooperation There is low affinity among farmers for Farmers can take up vegetable among farmers collective action for sourcing of inputs cultivation activity individually, and institutions and sale of vegetables resulting in however, souring of inputs and MART, Noida 60
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building higher operating costs. marketing can be planned collectively. Govt. policies Blockage of roads and civil unrest may Inclusion of poor tribal and and external lead to increase in input costs and development of local market system ecosystem market failure making vegetable will reduce dependence on external cultivation unviable. markets.
4.4.6 Project Intervention
Project can promote vegetable cultivation to be taken up by an individual family. Individual farmer will do the production but sourcing of inputs and marketing can be done collectively. Project need to work on strategies and capacity building inputs suggested in the previous section and by adopting an implementation plan described later. Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.4.6.1 Economics of vegetable cultivation (Green chili cultivation)
Calculations have been done for green chili cultivated over 1 kani (0.4 acre or 0.16 hectare). Cost of various inputs and outputs are based on information collected from villagers, market players and agriculture department. The rate of interest paid by the farmers is 1% per month. It is assumed to be taken for three months. The commission to agent is 7%. The wholesale price of green chili is taken as Rs 28/kg. Table 23: Economics of green chili production Particular Unit Quantity Unit Total Price(Rs) Amount(Rs) Income Sale of green chili Quintal 800 28 22400 Cost Tillage operations cost Lumpsum 1 320 320
Irrigation Lumpsum 1 240 240
Seed cost Kg 0.2 600 120 Use of fertiliser 0 MOP Kg 7 6 42 Super Phosphate (SSP) Kg 25 6 150 Urea Kg 26 5.75 149.5 FYM Kg 4000 0.33 1320 Plant protection measures Lumpsum 1 240 240
Labour involvement Manday 25 100 2500 Marketing expenses Commission 22400 0.07 1568
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Transportation to nearby market Trip 1 600 600 Packaging and bagging Number 80 10 800
Misc Lumpsum 1 1000 1000 Total running cost 9049.5 Income 13350.5 Depreciation 600 Profit before interest 12751 Interest (12%) 3% 12,050 361.485 Net profit 12389
ROI 102.82% Payback period(year) 0.9
Fixed capital, working capital and total capital requirement Fixed capital Unit Unit price Total amount Life (in Depreciation (Rs) (Rs) year) (Rs) Farm equipments/tools 1 2,000 2,000 5 400 Miscellaneous 1,000 5 200 Total fixed capital 3,000 600 Working capital requirement 9,050 Total capital requirement 12,050
Sensitivity analysis for vegetable cultivation Parameters Unit Impact on unit Profit before or cost interest What if selling price falls by 20% Rs/kg 22.4 8270.5
What if costs go up by 20% Rs total 10859.4 10,941
What if business volume goes down by 20% Quintal 640 8270.5
What if selling price goes up by 20% Rs/kg 33.6 17230.5
What if costs fall by 20% Rs total 7239.6 14,560
What if business volume goes up by 20% Quintal 960 17230.5
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Vegetables cultivation in one acre of land (multiple vegetables) Assumptions Green chili, Radish and Cauliflower is grown in one acre of land; green chili in 0.04 acre, Radish in 0.4 acre and cauliflower in 0.2 acre The average cost for vegetables is taken as Rs 9 per kg Particular Unit Quantity Unit Total Price(Rs) Amount(Rs) Income Sale of vegetables (green chili + Quintal 6800 9 61920 Radish + cauliflower) Cost Tillage operations cost Lumpsum 1 800 800
Irrigation Lumpsum 1 600 600
Seed cost Kg 1 1984 1984 Use of fertiliser 0 MOP Kg 20 6 120 Super Phosphate (SSP) Kg 82 6 492 Urea Kg 66 5.75 379.5 FYM Kg 10400 0.33 3432 Plant protection measures Lumpsum 1 600 600 Labour involvement Manday 52 100 5200 Marketing expenses Commission 61920 0.07 4334.4 Transportation to nearby market Trip 1 1500 1500 Packaging and bagging Number 140 10 1400 Misc Lumpsum 1 1000 1000 Total running cost 21842 Income 40078 Depreciation 600 Profit before interest 39,478 Interest (12%) 3% 24,842 745.2 Net profit 38,733
ROI 155.92% Payback period(year) 0.6
Fixed capital, working capital and total capital requirement Fixed capital Unit Unit price Total amount Life (in Depreciation (Rs) (Rs) year) (Rs) Farm equipments/tools 1 2,000 2,000 5 400 Miscellaneous 1,000 5 200
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Total fixed capital 3,000 600 Working capital requirement 21842 Total capital requirement 24842
Sensitivity analysis for vegetable cultivation (multiple crops) Parameters Unit Impact on unit Profit before or cost interest What if selling price falls by 20% Rs/kg 7.2 27094.1
What if costs go up by 20% Rs total 26210.28 35,110
What if business volume goes down by 20% no 5504 27094.1
What if selling price goes up by 20% Rs/kg 10.8 51862.1
What if costs fall by 20% Rs total 17473.52 43,846
What if business volume goes up by 20% Quintal 8256 51862.1
4.4.6.2 Comparative analysis of various possibilities The table 24 below illustrates input costs for various vegetables, market rate, gross income and net income, and retun on investment from various vegetables. Table 24: Inputs costs and income from vegetables Vegetables Input Production( Rate/kg Income Net RoI(%) cost kg) income Green Chili 9050 800 28 22400 12389 103 Radish 9898 4800 5 24000 13116 102 Tomato (hybrid) 14039 6400 5 32000 16850 99 Cauliflower (certified) 13161 2560 12 30720 16474 102 Cabbage (certified) 12650 4800 6 28800 15081 96 Source: agriculture department data and field survey Note: Calculations are done for 0.4 acre of land. Net income is calculated after deducting input cost, depreciation and interest cost from gross income.
4.4.6.3 Possibility of setting up processing unit Vegetables can be processed into pickles. However, setting up such processing units at the village level would require entrepreneurial skills among poor, marketing and technical skills, and ensured market linkages with bulk buyers which poor lack to sustain such processing units. The demand at the village level would be low and marketing of products outside the village would require successful marketing interventions such as proper packaging and branding, and linkages with wholesalers and retailers. It is, therefore, suggested that for first couple of years poor (both individuals and groups) should encouraged MART, Noida 64
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for vegetable production, productivity enhancement and market linkages. After couple of years project can identify few individuals with entrepreneurial skills to experiment setting up few processing units. Project staff with marketing skill could be involved for conducting the detail feasibility study before setting up such units.
4.4.6.4 Implementation plan for promoting vegetable cultivation
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level (3 months) Cluster selection Select cluster for vegetable cultivation based on technical feasibility. Identify target block, village and the community. Social Share various possibilities of vegetable cultivation, its cost benefit analysis, and mobilization and assess community interest level to take up the activity. institution Identify the members/groups to start vegetable cultivation as a new unit. building Initially only a limited number of groups should be encouraged to start the activity. Based on the results of pilots add more members gradually. List out members separately who are already doing the activity and want to either expand or strengthen the activity. Initiate participatory discussion to arrive at consensus on roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for vegetable cultivation in consultation with business plan the community detailing economics of the activity, sourcing of inputs, linkages with market players, production practices and appropriate technology providers, and government schemes to be availed. Capacity building Impart leadership training to the group members. Emphasize participatory method in imparting training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis). Impart technical training in better practices by conducting exposure visits to nearby best practitioners and outside the states as well. Identify suitable government and private agencies that can provide need-based technical and business training at the community level. Identify local level best practitioners as resource persons. Phase II – Establish backward and forward linkages (6 months) Backward Counsel farmers to procure raw materials including machines and equipments linkages collectively in bulk to reduce operational costs. List out major inputs suppliers for ensuring quality of inputs and timely availability. Systematize training management Establish finance support for vegetable cultivation on unit cost basis. Production Implement best practices.
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Ensure clarity of roles, specialization and continuous skill improvement Bring quality control in production to achieve efficiency, higher productivity and at lower costs. Impart training in record keeping and financial management. MIS development and multidimensional intervention opportunity. Market access Identify suitable and multiple markets and prepare list of market players with their contact details. Encourage farmers to do simple value addition such as sorting and grading to get better prices. Engage in bargaining, marketing of produce to realize better price. Counsel members of the group activity for funds and profit sharing. Build system for collaborations and employment Phase III – Up-scaling (9-12 months) Monitoring and Set up regular follow up and monitoring system to evaluate units from time to evaluation time to find out gaps, take corrective steps and ensure delivery of appropriate extension services. Strengthening Facilitate secondary institution (producer group) to upscale and sustain the Institution initiative. Plan capacity building for strengthening of secondary institutions Diversify activities to increase income Create village level cadres to extend technical and marketing inputs to community at village level. Provide handholding and technical support to secondary institution Legal aspects Compliance to legal implications for excise, sales and VAT (once activity achieves scale it would be required to source inputs directly from outside the state.
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4.5 Fish culture Value Chain
4.5.1 Background
Fish is a popular dietary source of protein due to its easy availability and affordability. However, the availability of fish in natural environs has considerably declined owing to over consumption and pollution of water bodies. Scientific methods of fish farming are now used for increasing fish availability for consumption. Farmers can easily take up fish culture in village ponds or tanks to supplement their income. It also creates gainful employment for skilled and unskilled youths.
The Indian Fisheries occupies third position in global scenario in terms of fish production which is 4.4 per cent of global fish production. The contribution of fisheries sector is 1.1 per cent to the total GDP and 5.3 per cent to the agricultural GDP. Fishery sector has emerged as the largest group in agricultural export of India with quality of 5.2 lakh tones and value of USD 1.78 billion, respectively. The sector employs 14 million of the population. Indi’s focus on doubling freshwater aquaculture production through increase in productivity and area is likely to significantly increase fish production by 2015.
The Government of Tripura lays special focus on promoting fish farming in the state as fish is the most important part of diet of 95% population and an important source of income and nutritional security for the rural population. Sensing this opportunity and importance, the state government, through its department of fisheries, has formulated a perspective plan for 2011-2012 to attain self sufficiency in fish (availability @ 13 kg per capita from its own production). After 1978 separate fishery directorate was formed in Tripura. Earlier it was under agriculture director.
Fishery has a good potential in the state. Presently the state has 1,57,688 water bodies for pisciculture with a total area of 20521.07 ha that includes open water bodies like rivers, and lakes where fishery department leaves fingerlings that help poor in fishing activity; the other category includes tank and pond. Presently 1,60,000 persons are engaged in fishery in the state. Fish trading is done throughout the year. Different varieties of fish are available to consumers in the state such as hilsa, rohu, catla etc. As people are finding fisheries more profitable than agriculture, a number of farmers have converted their agriculture land to pond for pisciculture. Fish culture is mainly rain-fed as 40% water bodies in the state are non perennial.
The current average productivity is 2,154 kg/ha/year. The state’s target by year 1012 is 3050 kg/ha/year. To achieve the target, the Government is promoting scientific fish culture through demonstration programme and encouraging entrepreneurship among SHGs, formation of model aquaculture panchayats anddevelopment of medium cost fish culture based special village. Currently, there are 142 registered
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fishermen co-operative societies in the state that manage a number of water bodies. Societies conduct elections every three years to elect representatives who work for fish promotion in the state.
4.5.2 Feasibility of fishery in Tripura
Technical feasibility The agro climatic conditions are suitable for fish culture in the state. A wide range of fish varieties such as Rohu, Catla, Brigette, Silver Carp, Mrigel, Singhi/Magur and small varieties such as Gulsa, Kai, Puti are produced in the state. 1,57,688 water bodies are available in the state for fish culture. As on March 2010, 20,521 hectare (as against 10,140.8 hectare in 1998) of culturable water area and 7878.6 hectare of captured (open) water area was available in the state. The basic skills for fishery are available with the poor community. The State provides an enabling environment for fishery promotion with 18 hatchery units (both for fish seeds and prawn seeds), 7 fisheries training sample centres, 19 soil and water testing laboratory, 11 fish feed manufacturing plants, 2 fisheries awareness centres and 398 fisheries circle offices in the state. Fishery department promotes 41 model aquaculture panchayats for demonstration of best and latest practices of fish culture to rural population.
Factors that affect the fish culture productivity Soil texture – Soil with higher water retention capacity is better for fish culture Soil pH – low pH value are favourable for fish culture Nutrients use– High productivity depends on timely use of the nutrients Fertilizer application – timely use of fertilizers ensures high productivity
Control of predators – timely control of predators ensures higher productivity and lower are input costs
Market feasibility
The demand for fish in the state is higher than the current production level. A part of this demand is met from Bangladesh, Andhra Pradesh and Kolkata. The state has well organized markets. Two wholesale markets at Agartala and sub division markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and 474 village level primary markets where poor can sell fish directly to local consumers. In the last few years, the volume of fish coming to Agartala wholesale market has grown by over 20% per annum. As per market sources it was 50 metric ton in 2008; 60MT in 2009 and 80MT in 2010. Within the state also fish production has increased from 36991 MT in 2008-09 to 41,054MT in 2009- 10.
Economic feasibility
The cost of investment is Rs 62,326 per 0.4 acre which can be availed from the banks. The net income per year is around Rs 25,611 with 41 % return on investment.
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The bank finance and government subsidy is available for excavation. Under NREGS, the cost of excavation of new pond (estimated at Rs 60,000 per o.4 acre) and inputs can be financed at no cost to farmers. Average productivity has increased by over 68 % in last 12 years; from 1280 kg/ha/year in 1998 to 2074 kg/ha/year in 2008-09 and 2154 kg/ha/year in 2009-10.
4.5.3 Production clusters
Except forest area (nearly 60% of the state’s geographical area) fish culture is practised throughout the state (20,521 hectares) including project area of West (7757.98 hectare) and North districts (2797.26 hectare).
4.5.4 Major usage and byproducts
Fish is consumed as a popular diet by over 95% population in the state. It meets an important nutritional requirement of the state population.
4.5.5 Fish value chain 4.5.5.1 Figure 6: Value chain map of Fish culture
Consumers Consumers Consumers Consumers (Local market)
Retailers Retailers (Agartala) Retailers Retailers 100-120/kg (Agartala) (Subdivisions) (Agartala/Subdivision
Wholesalers Wholesaler Wholesaler Rs 80-90/kg (Agartala) (Agartala) (Subdivisions)
Wholesale markets Fish collectors and/or traders Kolkata/Bangladesh
Farmers Farmers Rs 60-70/kg* (Outside state) (Within state)
Input Suppliers (Within state) Fingerlings, net, feed supplement, equipment, medicines etc.
* The rates given are for Rohu fish from Andhra Pradesh.
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The state is a net importer of fish; 95% of the supplies at Agartala wholesale markets come from Bangladesh, Andhra Pradesh and West Bengal. 95% population consumes fish in the state. Agartala with a population 1,89,327 as per 2001 census (367822 after municipal expansions in 2004) is a huge market for fish and depends on fish coming from both within and outside the state. Local fish supplies are to the tune of 10-12 MT; 4MT comes in the wholesale market and 8-10 MT directly in the retail markets. Producers get only 50% of the value paid by the final consumers; rest of the value is taken by various channel partners. Fish are sold in the state throughout the year. However, local supply reduces during winter season of December to February. There are 474 village level primary markets in the state where farmers sell local fish directly to the consumers.
4.5.5.2 Stakeholders and their roles
4.5.5.2.1 Input suppliers
The main inputs for fish culture are fingerlings, net, feed supplement, oil cakes, lime, equipment, medicines, and water. All inputs are available in the state and except fingerlings, which are available locally, all other inputs are procured by wholesalers from West Bengal (Kolkata) and Andhra Pradesh and therefore, their costs are higher. Farmers procure these inputs from block, sub division or Agartala wholesale markets.
There are 18 hatcheries in the state that supply fingerling to the farmers. SHGs have also been trained by fishery department for seed production. Farmers receive inputs such as fish seeds and institutional credit linkages from Fish Farmers Development Agency (FFDA) operating in all districts under government sponsored schemes like SGSY and Swavalamban. New equipment such as aerators are supplied under various government schemes to improve productivity. Farmers also benefit from government support in creation of new water bodies through construction of ponds and mini-barrages, and reclamation/renovation of seasonal water bodies.
4.5.5.2.2 Fish Farmers
Huge demand for fish coupled with well organised market has made fishery a popular income generating activity in the state. As per the fishery department, presently about 1,60,000 persons are engaged in this activity in the state. It is popular among farmers in the project area of North and West districts, where small and marginal farming communities practice it over 0.4 acre to 4 acres of land, which constitutes 10% to 60% of their total landholding. As farmers started finding fisheries more profitable than agriculture, a number of them converted a part of their agriculture land into tanks or ponds for fish culture. Looking at the opportunity, in the last few years some farmers have completely shifted to fish culture. Some of them even lease out their ponds to small farmers on agreed terms of profit sharing.
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4.5.5.2.2.1 Input sourcing
Farmers procure fingerlings from local markets and also from government hatcheries. Fish farmers also use breeding fish of different sizes (by weight) for production purpose. Cow dung is available within the village. Inputs like mustard oil cake, quick lime and fertilizers are available in nearby markets. Quick lime and fertilizers are also available from panchayat office/govt. departmental store but short supplies compel farmers to procure inputs at higher rates from open market. Inputs are sometimes available on credit without interest and farmers repay it after the harvesting.
4.5.5.2.2.2 Production practices and technology used
Farmers generally follow traditional methods. However, several of them have learnt latest practices at gram panchayat model fish farms established by the fishery department. The common varieties for fish culture include Catla , Rohu, Mirgel, Carfu, Grass Carp, Silver Carp. Few farmers also culture Brigette and Japani Punti. Fish culture is a less intensive activity where farmers spend 1-3 hours daily but it requires regular monitoring. Whereas male members are engaged in procurement of inputs, production and marketing, women and sometimes grown up children are involved in production activity. Farmers employ local villagers to manage pond operations and pay them Rs 100 to Rs 150 per day.
Farmers use quick lime in the pond to get rid of unwanted weeds and predatory fish. Cow dung, mustard oil cake, rice husk and poultry excreta are used every month as fish feed. Poor farmers use a mixture of fish feed as a substitute available from local market and fisheries department. Some farmers are using aerator, which they received from under government schemes, to increase fish productivity; however it is not in common use owing to its high cost of Rs 40,000. There is low adoption of standard package of practices suggested by the fishery department among small farmers due to higher input costs and lack of knowledge for optimal utilization of resources. Fishlings take about three months time to optimally grow for harvest and sale.
4.5.5.2.2.3 Market access
Farmers sell fish in weekly markets and nearby block and sub division markets. Due to high demand of fish the entire catch is normally sold in weekly haats and nearby daily markets within the block area. Big farmers also sell in nearby wholesale markets at sub divisions through commission agents and pay 6-7% commission. Commission agents also charge labour cost (loading and unloading) from farmers. Farmers bear transportation cost (Rs 150 to Rs 200 for the entire lot) to bring the fish to sub division markets. Farmers engage local villagers in selling the catch in the market and bear their food and travel expenses and pay Rs 20 per trip. SHGs engage fishermen to catch fish and give them up to 20% commission. All transactions are done in cash. Fishes are sold in lot (without sorting) and also by sorting varieties. Sorting helps farmers fetch higher prices. Price of fish depends on its size (weight) and variety. Generally prices of fish of same variety weighing between 200 to 500 gm; 500 to 800 gm ; 800 gm to 1 kg ; 1 kg to 2 kg ; and above 2 kg fetch same prices. Price of smaller size fish is less than bigger size fish of the same variety as illustrated in table 25.
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Table 25: Fish wholesale prices for farmers
Type of fish Prices received by farmers from wholesaler (Rs/kg) Large size Small size Rohu 135 90 Carfu 140 87 Mirgel 120 75 Brigette 95 68 Source: Field survey in Kailashar sub division market
4.5.5.2.2.4 Fish collectors and/or traders
Fish collectors and/or traders are located in villages and nearby towns. They come to villages in group of 2-3 persons with all required equipment such as net, catch the fish for interested fish farmers and sell it in the nearby wholesale markets. They normally keep Rs 10 to Rs 15 per kg of margin on the wholesale price. Traders work on commission basis and take 10-20% margins for procuring fish at farm gate and selling them in wholesale markets.
4.5.5.2.3 Wholesalers
Two wholesale markets in the state capital of Agartala are located at Maharajganj and Batala. Maharajganj market has nearly 40 wholesalers and Batala nearly 35 wholesalers. Wholesalers also act as commission agents and charge 6% commission. Fish in these wholesale markets come from Andhra Pradesh, Bangladesh and West Bengal. Place Quantity coming per Type of fish day (MT) Bangladesh 40 (52%) Rohu, Catla, Hilsa and small fish Andhra Pradesh 30(38%) Rohu, Catla West Bengal 4(5%) Rohu, Catla Tripura 4(5%) Rohu, Catla, Brigade, Silver carfu, singh and mangore (live), small fish (gulsa, kai, puti etc.) Total 78
2008 2009 2010 Fish volume coming per day at 50MT 60MT 75MT Agartala Source: Field survey Several of the wholesalers the study team met have this as their traditional family business for past few generations. 70% fish come in Maharajganj market and 30% fish come in Batala market. Fish comes in 35 to 40 kg per pack size from Andhra and 50 to 200 kg per pack size in baskets from Bangladesh.
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From wholesale market fish goes to all four districts at Udaipur (South), Ambassa (Dhalai), Dharamnagar(North) and West district. Dharmanagar and Kailasahar sub-Divisions also get fish from Silchar / Karimganj (Assam) as these two sub-divisions are situated nearby Assam-TripuraBorder. Local fish in Agartala comes from Dumbur Nagar block (Gandachada sub division in Dhalai district), Uaipur (South), Melaghar and Bishalgarh blocks (West). About 2-4 MT local fish is sold from Agartala based retail market and sub-divisional local fish catch is sold in the sub-division local market. Wholesaler gives cash payment to local farmers. The wholesale markets provide employment to nearly 2000 labours.
4.5.5.2.4 Retailers
There are nearly 10,000 retailers in the state. In Agartala there are eighteen registered municipal retail markets. As many as 50-70 retailers are registered with each retail market. For example, Lake Chowmuhani retail market has 55 retailers registered with the municipality and in Durgachowmuhani 70 retailers are registered. Retailers pay onetime fee of Rs 3,500 to the municipality and Rs 40 as monthly charge (tauji) to Municipal Corporation. Retailers within the Agartala city procure fish from wholesale market by 6 am-7 am and sale in retail from 7am to 12 noon. If the stock lasts, it is sold in the evening. Some retailers sell in one market in the morning and other market in the evening. One retailer brings 2 boxes. One box contains 40 kg fish with around 40 kg ice. Each retailer sells 40- 50 kg per day. For example, total sale in Durgachowmuhani market per day comes to 2,800 kg. Transportation from wholesale market to retailer market in town area comes to Rs 20 per box. Retailers pay Rs 10 as labour cost per box to wholesaler. Retailers sell in cash to consumers.
4.5.5.2.5 Transporters
Transporters are located at the source points in Andhra Pradesh and Kolkata. From Kolkata in West Bengal fish come by air cargo. From Andhra Pradesh fish come to Agartala in a 10-wheeler lorry. It carries a load of 15 MT (10 MT fish + 5 MT Ice) and costs Rs 1,05,000 (including ice, bhusi, thermokol box, transportation, labour). Transportation cost comes to Rs 18-Rs 22 per kg. Wholesalers at Andhra Pradesh insure the cargo at premium of 1.2% . Some trucks stay for a couple of days till the entire stock is sold to retailers. Wholesaler takes labour charge from retailer for unloading (Rs 5 per box) from the truck and loading to retailer transport (Rs5 per box). Therefore, a retailer is charged a total of Rs 10 per box. From Agartala wholesale markets to retailers within the city fish is transported by auto van, small truck or rickshaw, and the cost is borne by the retailers. From Andhra Pradesh to Agartala transport takes 7-8 days and 5 to 6 days from Kolkata to Agartala. Road route: NH-44 AP to West Bengal (Siliguri) to Assam (Guwahati) to Meghalaya (Shillong) to Assam (Badarpur – Karimganj), Churaibari check post near Dharmnagar (Tripura-Assam Border) to Kumarghat-Ambasa –Teliamurah –Agartala. Guwahati to Agartala is 856 km. Train route: Guwahati to Lumding Junction (broad gauge). Lumding to Agartala by meter gauge (Lumding – Halflong – Badarpur – Karimganj – Dharamnagar (Tripura) – Kumarghat - Ambasa – Teliamurah – Agartala MART, Noida 73
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4.5.5.2.6 Consumers
About 95% population of the state consumes fish. Small fish have high demand as it tastes better and has low cholesterol level. It is costlier than the big size fish. Rohu and Catla are the most preferred varieties in the state as these are cheaper compared to local varieties. Well -off consumers prefer to buy live fish (such as singhi and magur) that costs Rs 400 to Rs 500 per kg. The fish prices vary on daily basis based on the supply and demand situations. Table 27: Fish wholesaler and retail rates
State/Location Wholesaler to Retailer Retailer to consumer Variety (per kg) (per kg) Andhra Pradesh Rohu Rs.80–90/- Rs100 –Rs120 Catla Rs90-100 Rs120-140 West Bengal Rohu Rs100 -120 Rs130-160 Catla Rs100-130 Rs130-170 Bangladesh Rohu Rs110-130 Rs140-160 Catla Rs120-140 Rs140-180 Hilsa Rs250-300 Rs300-400 Small fish Rs100-150 Rs120-200 Local (Tripura) Rahu Rs120-150 Rs140-200 Catla Rs120-170 Rs140-250 Brigette/Silver Carp Rs50-90 Rs60-120 Singhi/Magur(live) Rs400-500 Rs500-700 Small fish (Gulsa, Kai, Puti etc.) Rs100-200 Rs120-300 Source: field survey (wholesale market at Maharajganj and retail markets at Lake Chowmuhani/ Durgachowmuhani in Agartala)
4.5.5.2.7 Constraints-Strategy Matrix The table 28 below illustrates constraints faced by fish farmers for key livelihood factors and critical interventions points to overcome constraints.
Table 28: Constraints faced by fish farmers and interventions points Factor Constraints of fish farmers Critical intervention points Input sourcing Availability of fingerlings from Need to establish a formal government hatcheries is not sufficient. arrangement with the fishery Quality of fingerlings is often not good. department for ensuring quality Hatcheries are not located locally so fingerlings to farmers and training in there are problems in timely availability culturing fingerlings. of fingerlings. Organise farmers to procure inputs
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Farmers procure inputs in small collectively to negotiate better prices quantities from nearby markets and reduce overhead costs. resulting in higher cost per unit. Overall Train farmers to prepare fish feed inputs costs are higher as these come based on local resources. from outside the state. Production Disease is a major concern for which Farmers need regular trainings at practices and farmers approach fishery department. model aquaculture panchayat set up technology Farmers go for curative care rather the fishery department till such time used than preventive care. that they fully adopt the package of Productivity is low as poor farmers practices based on their own practical don’t follow standard practices learning and experience of doing it. suggested by the fishery department. Linkage with local banks and Equipment such as aerator that government schemes such as SGSY increase productivity significantly are can help famers in accessing loan for costly. Aerator of Rs 40,000 is not purchasing improved equipments affordable for a small farmer. and fencing for their pond. Theft is a common concern and the cost Exposure visits to Andhra Pradesh of fencing prohibitive for poor farmers. and West Bengal can help develop There is a lack of awareness among village level best practices. farmers on new improved technologies available in the market. Access to Small farmers individually find it Appointment of village level service support services difficult to comprehend and access providers and implementation provided by various schemes and services provided agencies can link famers with government and by government agencies. Farmers don’t relevant schemes and services. private agencies have training and exposure in scientific practices in fish culture. Access to Farmers find it difficult to individually Formation of SHGs of poor farmers finance access finance for starting new income will ensure their financial inclusion generation activities and expanding by local banks. existing activities. Most farmers source Linkage could also be established funds from village level money lenders with financial institutions and MFIs who provide loans at 4% to 5% per such as Bandhan, SKS who operate in monthly rate of interest. Tripura and provide loan at an effective rate of interest above 30% per year. Market access Farmers sell individually to the There is scope for collectivizing retailer/wholesaler resulting in higher farmers to sell collectively and overhead marketing costs directly to higher order markets at Farmers get 50% of value paid by the sub division towns and Agartala for final consumers better price realization.
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Cooperation In the absence of collective action in Famers can take up the activity among farmers inputs sourcing and fish sale operating individually, however souring of and costs of farmers are high. inputs and marketing can be planned institutions Small farmers lack entrepreneurial collectively for economic gains. building attitude to pursue fish culture Poor farmers need to be organised commercially. and their capacity be built in technical skills as well as in business dynamics by linking them with suitable training agencies. Exposure to successful initiatives will hasten the process. Govt. policies Blockage of roads and civil unrest may Inclusion of poor tribal and and external lead to increase in input costs and development of local market system ecosystem market failure making fish culture will reduce dependence on external unviable. markets.
4.5.6 Project Intervention Project can promote fish culture to be taken up by an individual family. Individual farmer will do the production but sourcing of inputs and marketing can be done collectively. Project need to work on strategies and capacity building inputs suggested in the previous section and by adopting an implementation plan described later. Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.5.6.1 Economics of fish culture
Composite fish culture The composite fish culture system is a technology developed in India by the Indian Council of Agricultural Research in the 1970s. In this system both local and imported fish species, a combination of five or six fish species, are cultivated in a single pond. These species are so selected that they do not compete for food in other words they have different food habits. As a result the food available in all the parts of the pond is used. Fish used in this system include Catla and Silver Carp which are surface feeders, Rohu is a column feeder and Mrigal and common carp which are bottom feeders. Other fish will also feed on the excreta of the common carp and this helps contribute to the efficiency of the system which in optimal conditions will produce 3,000-6,000 kg of fish per hectare per year.
Assumptions
Calculations have been done for 1 kani (0.4 acre or 0.16 hectare) of land for composite fish culture activity. Costs of various inputs and outputs are based on information collected from fishery department, villagers and market players. Small farmers own 0.4 acre of land. Cost of earth work, including excavation, lead lift and compaction (without mechanical roller), ordinary inlet and outlet, is available under MNREGS free of cost.
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Initial stocking of 6250 fingerlings includes Catla (25%), S. Carp (10%), Rohu (30%), Mrigal (15%) and C. Carpio (20%). For Catla cost is Rs 2000 per 1000 number and for others it is Rs 600 per 1000 number including transportation costs. Fish price depends on the weight and variety of fish. Small fish sells at lower price than larger fish. Sale price of fish is taken as Rs 100/kg Table 29: Economics for fish culture Particular Unit Quantity Unit Total Price(Rs) Amount(Rs) Income Sale of fish kg 500 100 50000 Cost Control of predators by repeated Lumpsum 1 500 500 netting Application of quick lime @ kg 48 12 576 300kg/hectare Application of soil pro-biotic (V5) @ kg 1 950 950 100gm/month in 10 installment Basal manuaring Mustard oil cake @ 100kg/ha 24 20 480 Raw cow dung @ 12500kg/ha kg 2000 0.25 500 Stocking of fingerlings Initial stocking @ 6250 number/ha (6- Number 1000 0.95 950 7cm) Periodical stocking @ 4000 number/ha Number 640 0.95 608 Monthly application of manure Raw cow dung @ 1000kg/ha/month for kg 1280 0.25 320 8 months MOC @ 31.25 kg/ha for 8 months(5kg) kg 40 20 800 Additional liming @ 200 kg/ha for two 64 12 768 times Artificial feeding with balance feed (15 days every month for 10 months) Dust feed for first 6 months kg 150 18 2700 Pelleted feed for last 4 months kg 221 22 4862 Medicine etc. for Prophylactic measures Bottle 2 150 300 Misc(procurement of plankton net and Lump sum 1 800 800 charges for net) Cost of harvesting manday 12 100 1200 Marketing expenses (commission by commission 50000 0.06 3840 agents) Total running cost 19314 Net Income 30686
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Depreciation 4452 Profit before interest 26234 Interest (12%) 1% 62327 623 Net profit 25611
ROI 41.09% Payback period (year) 2.03
Fixed capital Quantity Unit Total Life Depreciation Price(Rs) Amount(Rs) (year) Turfing of embankment 1 2,012 2,012 8 252 with grass slabs/blocks B35 Oxygenator 1 40,000 40,000 10 4000 Miscellaneous 1,000 5 200 Total fixed capital 43,012 4452
Working capital 19314 Working capital requirement 16948
Total capital requirement 62,326
Sensitivity analysis for fish culture Parameters Unit Change in unit or Profit before cost interest What if selling price falls by 20% Rs/kg 80 16234.5
What if costs go up by 20% Rs total 23176.8 22,372
What if business volume goes down by 20% Kg 400 16234.5
What if selling price goes up by 20% Rs/kg 120 36234.5
What if costs fall by 20% Rs total 15451.2 30,097
What if business volume goes up by 20% Kg 600 36234
4.5.6.2 Comparative analysis of various possibilities 4.5.6.3 Table 30: Fish culture possibilities and their economics Input Production Rate/kg Income Net RoI cost income 1. Composite fish culture 19314 500 kg 100 50000 25611 41
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2. Fish culture with multiple 23960 660 kg 100 66000 36918 55 stocking 3. Pig cum pisciculture 30446 Fish – 700kg 100 70000 44367 60 Pigmeat- 100 100 10000 4. Duck cum pisciculture with 34126 Fish – 700kg 100 70000 28650 37 multiple stocking Egg- 1600 3 4800 Duckmeat- 32 100 3200 5. Polyculture of prawn 31522 Fish-450kg 100 45000 23280 31 Prawn-100 250 25000 6. Intensive fish culture with 40111 Fish- 1140kg 100 114000 58606 71 multiple stocking Source: Fishery department data and field survey Note: Net income is calculated after deducting input cost, depreciation and interest cost from gross income.
4.5.6.3 Implementation plan for fish culture promotion
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level (3 months) Cluster selection Select the right cluster in both project districts for initiating fish culture promotion. Identify target block, village and the community. Social mobilization Sensitize fish farmers about the potential of fish culture based on the findings and institution of value chain analysis described earlier and its impact on their livelihood. building Share various possibilities of fish culture, its cost-benefit analysis, and assess their interest level to take the activity. Identify the members/groups interested to take up fish culture as a unit. Initially only a limited number of groups should be encouraged to start the activity. Based on the results, add more members. List out members separately who are already doing the activity and want to either expand or strengthen it. Initiate participatory discussion to arrive at consensus on roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for initiating fish culture in consultation with business plan the community, sourcing of inputs, linkages with market players, production practices and technology to be used, and government schemes to be availed. Capacity building Leadership training for groups members– functions and responsibility to interact with external players Impart business and marketing skill training (costing, pricing, accounting, sales and marketing, negotiation, market analysis) to members using participatory techniques. Technical training on better practices, exposure visits to nearby model MART, Noida 79
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aquaculture panchayats and outside states as well. Identify suitable government and private agencies that can provide need based technical and business training at the community level. Identify local level best practitioners. Phase II – Establish backward and forward linkages (6 months) Backward linkages Link with NREGS scheme for excavation of pond and sourcing inputs under the scheme. Procure raw materials, machines and equipments collectively in bulk at lower cost List out major inputs suppliers for ensuring quality of inputs Systematize farmer training management Establish finance support for fish culture on unit cost basis. Production Implement best practices. Develop clarity of roles, specialization and continuous skill improvement Set standards in quality control in production to achieve efficiency, higher productivity and lower costs. Impart training in record keeping and financial management. Develop MIS and multidimensional intervention opportunity. Market access Identify suitable and multiple markets. Prepare list of market players. Training in marketing to draw better price for the produce. Clarify on funds rotation and profit sharing among members in case of group activity. Develop systems and collaborations for more employment Phase III – Up-scaling (9-12 months) Monitoring and Set up regular follow up and monitoring system to evaluate units from time evaluation to time to find out gaps, suggest corrective steps and ensure delivery of appropriate extension services. Strengthening Facilitate secondary institution (producer group) to upscale and sustain the Institution initiative, if required. Plan capacity building for strengthening of secondary institutions Diversify activities to increase income Create village level cadres to extend technical and marketing inputs to community at village level. Provide handholding and technical support to secondary institutions Legal aspects Compliance to legal implications for excise, sales and VAT (once activity achieves scale it would be required to source inputs directly from outside the state).
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4.6 Pineapple cultivation
4.6.1 Background
Pineapple is a tropical fruit. Rich in Vitamin C, other vitamins and fibre, the fruit is known for its high nutrient and curative value. Its Bromelin content stimulates digestion and the healthy working of small intestine and kidneys through regulation of colonic flora and detoxification. It is also known to heal haemorrhoid, prevents and corrects constipation, cold, infections of mouth, throat, and lungs.. Cooked peel cleans blood and alleviates swellings. Juice helps to cure cystitis and fevers. Pineapple contains 81.2 to 86.2% water, and 13- 19% solids, of which sucrose, glucose and fructose are the main components. Fresh pineapple contains minerals like calcium, iron, chlorine, potassium, phosphorus and sodium (source: www.fao.org).
The total annual world pineapple production is estimated at 14.6 million tones. India is the fifth largest producer of pineapple with an annual output of about 1.2 million tones. Other leading producers are Thailand, Phillipines, Brazil, China, Nizeria, Mexico, Indonesia, Colombia and USA. The area under pineapple cultivation in India increased by 35% from 57 thousand ha in 1991-92 to 77 thousand ha in 2001-01 whereas the production increased by 54% from 8 lakh tones to 12 lakh tones. The trend in export of fresh pineapple from India has increased considerably from 138 tonnes in 1999-2000 to 837 tonnes in 2001-02. U.A.E, Saudi Arabia, Oman, Nepal are some of the important countries importing pineapple from India. About 70% of the produce was exported during 2000-01. The consumption pattern in India is different from the world pattern. Whereas, about 97% of the world output is utilized by processing industry in India only 10% production is absorbed by the processing industry and remaining 90% is consumed in the raw form.
Tripura produces a variety of fruits throughout the year. A total of 5.07 lakh MT of fruits are produced every year. There has been 14% increase in fruit production over last seven years. Tripura is one of the largest pineapple growing states in the country. The state is famous for the ‘Queen’ variety of pineapple having high sugar content. Two varieties grown in the state are ‘Queen’ and ‘Kew’. Queen has golden yellow colour. As per the state horticulture department, in year 2008-09 pineapple was grown over 6338 hectares, which yielded 110,487 MT of the fruit or productivity of 17.44 MT/ha. The average weight of ‘Queen’ and ‘Kew’ are 800 gm and 1500 gm respectively. Of this, nearly 50,000 MT is surplus that needs to be processed and marketed to ensure better income to the farmers. Many cottage scale units in the state are involved in its processing, but they have very capacities. As per horticulture department, pineapple processing unit set up in 1987 by NERAMAC could use pineapple only 4% and could reach 6.25% of its total installed capacity. Most private units are also running at 30-35% capacity utilization.
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Pineapple is highly perishable food-crop; even in cold-storage it lasts for only 28 days. In the absence of proper post harvest management practices, nearly 30% of it gets wasted – amounting to loss of nearly Rs 400 crores every year. To meet the growing demand of making pineapple available throughout the year, the new staggering method described later has been tested and proven in Tripura’s Horticulture Research Complex in Nagricherra area. Its awareness and adoption is still low among the farmers and need to be promoted. The labourers, who were usually poorly paid and had employment for only three months in a year, are also happy as they now get work round the year in the orchards.
A memorandum of understanding was signed between the the Government of Tripura and Agro Processing and Export Development Agency (APEDA) on 01 February 2004 for the formation of the AEZ for pineapples in the state. The Industries department is the nodal office in the state for implementation of AEZ. Kumarghat block in North district has been identified for promoting organic pineapple. So far, not much has been done on ground, but it is believed that it would give boost to pineapple industry in the state.
4.6.2 Feasibility of Pineapple cultivation
Technical feasibility The agro-climatic conditions are suitable for pineapple cultivation in the state. ‘Queen’ and ‘Kew’ are two varieties grown; ‘Queen’ is popular for fresh consumption, while ‘Kew’ is better for canning. Farmers in the state have basic skills for pineapple cultivation which can be further enhanced. There are seven to eight cold stores with 5,000 MT capacity in the state, and the government plans to facilitate setting up more cold stores to ensure easy accessibility to farmers. Government support is available in terms inputs at subsidized rates, exposure visits, trainings and extension services. There are several government sector and private sector run processing units in the state with a combing capacity of nearly 9000MT.
Market feasibility Silchar (Assam) and Bangladesh are huge markets for pineapple. Once the Tripura- Bangladesh corridor opens up, the distance between West Bengal and other north-east states will drastically reduce bringing down the transportation cost. This is expected to offer huge boost to the pineapple cultivation. Tripura has well organized market structure with two wholesale markets at Agartala (Maharajganj and Batala) and sub-division markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and also 474 village level primary markets, where farmers sell pineapple directly to local consumers. There are several processing units in the state. Poor farmers can be linked with processing units.
Economic feasibility The cost of investment is Rs 40,936 per 0.4 acre (1 kani), which is affordable for a small farmer. The net income per unit is around Rs 64,664 with 147% return on investment. Pineapple cultivation gives higher income per unit compared to cereal crops . MART, Noida 82
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Cultivation does not require irrigation and fertilizers. Therefore, recurring expenditures are low and affordable to the poor. A pineapple plant gives fruit for at least 20 years.
4.6.3 Production clusters
Pineapple cultivation can be done throughout the state. Major clusters are Kumaghat, Bishalgarh, Melaghar, Boxanagar, Bishramganj, Mohanppur, and Manu.
4.6.4 Major usage and byproducts
Pineapple is usually consumed fully ripened as juice, slices or dessert at breakfast. Utilization of by products from pineapple culture, canning and juice extraction can be encouraged for feed production. Leaves can be used in three forms: fresh, dried and in silage.
4.6.5 Pineapple chain value chain
4.6.5.1 Figure 7: Value chain Map of Pineapple
Consumers Consumers (local Consumers Consumers and export) (Local market)
Retailers Wholesaler/Retailer Retailers Retailers 15-25/piece (Agartala/Sub of processed products (state and outside) (Agartala/Subdivisi division) on
Wholesalers Processing units in Wholesalers Rs 8-10/piece (Agartala, the state (state and outside) Sub-divisions )
Traders (state and outside)
Farmers Rs 3-5/piece (Within state)
Input Suppliers (Within state) Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
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The state is a net exporter of pineapple; it is exported to Assam and Bangladesh through direct linkage between farmers and trade channel. In the North district, the traders come from Silchar (Assam) and villagers bordering Bangladesh sell pineapple illegally along the long porous border. Processed pineapple as juice, jam, squash and slice is exported within India and South Africa and European countries such as Italy. Pineapple is harvested and sold during June to August every year. Majority of the local population consumes pineapple. Agartala with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004) is a huge market for pineapple consumption. Producers get only 20-30% of the value paid by the consumers; the remaining goes to various channel partners. There are 474 village level primary markets in the state where farmers sell pineapple directly to consumers.
4.6.5.2 Stakeholders and their roles
4.6.5.2.1 Input suppliers
The main inputs for pineapple cultivation are planting materials, chemical fertilizers such as urea, enzymes, MOP and organic manure such as FYM, vermi-compost and bio fertilizers, barbed wire and bamboo for fencing. All inputs are available in the state. Pineapple saplings and fertilizers are available from the nearby market and also from the government office at block office. Inputs suppliers are located at sub division level and at Agartala wholesale markets.
4.6.5.2.2 Farmers
Government agency categorises farmers on the basis of their land holding as marginal farmer, small farmer, medium and big farmer. It has been observed that farming and marketing practices adopted by a farmer varies within the same category and also with other categories based on their entrepreneurship attitude, skills adoption and finance availability. The price and profitability achieved depends on market information, transportation facility, and linkage with market players. The following table describes the farming and marketing practices observed among small and marginal farmers. Table 31: Pineapple farming practice Farmer 1 Farmer 2 Farmer 3 District West North West Total landholding 1.6 acre 1.2 acre 4.8 acre Land used for pineapple 0.4 acre 0.4 acre 4.8 acre Number of planting material 3000 5000 55,000 used Adopting new staggering No No Yes production technique Use of fertiliser No No Yes Use of manure (cow dung) No No Yes MART, Noida 84
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Use of irrigation No No Yes Fencing done Yes No Yes Price per piece (Rs) 6 5 8 Market Takes produce Takes produce Town trader come to himself to town himself to town his village market market Profitability 30% 48% 74% Source: Field survey 4.6.5.2.2.1 Input sourcing
Farmers procure most farm inputs from nearby markets and government stores: seeds and pesticides from nearby open markets, fertilisers from government department, cow dung is available within the villages, However, farmers do have problems in sourcing chemical fertilisers, which are in short supply and costs up to 1.5 to 2 times higher than the market rate. Farmers purchase inputs individually in cash. For irrigation water is drawn from rivers and ponds using lift irrigation Pump sets used are either hired or purchased.
4.6.5.2.2.2 Production practices and technology used
Two varieties of pineapple viz., Queen and Kew are grown in Tripura, but the growers are not aware of the variety they grow. Pineapple is grown in slightly sloppy land to avoid water stagnation and therefore plain lands are not suitable for its cultivation. Once saplings are planted they give fruits for about 20 years. New farmers prepare the land, clear the weeds and plant the saplings. Planting requires digging of small holes. Farmers plant 3000 and 3500 saplings in o.4 acre (1 kani) of land. Marginal farmers generally do not irrigate pineapple plantation and don’t apply fertilizers and pesticides. Field is cleared of weeds two times in a year. Farmers take one crop a year during June to August.
Small progressive farmers have started using a new staggering technique that gives two harvests in a year thus making pineapple available during off seasons, when prices are high, bringing them better income. This reduces market glut and helps farmers to harvest the fruit according to their requirement throughout the year. In this method farmers use ethel hormone and sodium carbonate along with two per cent urea. In 50 liters of water urea and vitamin solution is prepared and poured over the saplings after planting them. However, the adoption this and other like techniques is low among tribal cultivators. On the other hand, the traditional practices don’t provide sufficient income due to lack of information and low productivity. Therefore, tribal cultivators are shifting to tea gardens.
Pineapple, some farmers feel, is a risky business without adequate cold storage. Cold storage being at a distant place involves cost of transportation. A growing reluctance is seen among pineapple growers to continue its cultivation since the price of pineapple fall to to Rs 0.50 apiece in times of good harvest. Farmers approach fellow farmers and officials of Horticulture Department at the block office to take technical advice.
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4.6.5.2.2.3 Market access
Farmers sell pineapples in local haats, town markets and to traders coming from Silchar and Karimganj in Assam. Town markets are available within 20 km distance from the villages. Both local markets and the neighbouring state markets have pineapple demand, but its short shelf life (3 to 4 days) entails that it should be marketed immediately after the harvest. All transactions are generally in cash.
Pineapples go to Bangladesh through legal and illegal channels. However, few farmers export pineapples to Bangladesh. Dabur used to procure pineapples from Tripura, but stopped it about a year back due to prolonged blockade of NH 34 passing through Darjeeling district of West Bengal, informed Mr Thanglunga Darlong of Darchowai village in Kumarghat block of North Tripura district.
4.6.5.2.3 Transporters
Transporters are located within the state at Agartala and at sub divisions. Transportation charge from Bishalgarh is Re. 1.00 apiece. The transportation charges of Kalender (HYV) collected from Kumarghat block cost Rs. 2 apiece.
4.6.5.2.4 Wholesalers
Several wholesalers are located in Agartala market. Some of them are in this business for over 25 years. They collect pineapple from Bairagi Bazar, Bishramganj under Bishalgarh sub-division. Wholesalers collect Kalender (HYV) variety from Kumarghat Block. Transportation charge from Bishalgarh is Rs 1 per piece. Transportation cost from Kumarghat Rs 2 per piece.
4.6.5.2.5 Retailers
There are several retail markets spread throughout the state. Each retail market has 10-15 retailers in Agartala. Retailers procure pineapple from wholesalers in the afternoon from 12 noon to 4pm. At a time they bring 50 to 100 pieces. Transportation charge for carrying 50 to 100 pieces in the municipal area is Rs. 20 by rickshaw and is borne by retailers. Sometimes retailers procure pineapple directly from the farmers.
4.6.5.2.6 Processing units
There are both government and private run processing units in the state; Neramac based at Nalkata in North Tripura District is a government under taking unit. Piyush Agro Tech Food Production Unit, Panguin Agro International Limited and Paras are private run processing units in and around Agartala. Panguin make slice only and supply to Dabur India Limited in 1 kg pack size. Paras make juice squash and supply outside and within the state. Panguin’s daily requirement is 4000 pineapples per day and Paras require 2000 pieces per day. Poor farmers can collectively supply pineapple to these processing units.
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4.6.5.2.7 Consumers
Pineapple consumers are available throughout the state and they buy it from the retailers in the weekly markets in villages, retails markets in Agartala and at sub-division level. Majority of people consume pineapple as fresh fruit in the state. Processed pineapple in the form of jam, juice, squash and slice is consumed within the state and is exported outside the state. The following table reflects the final prices paid by the consumers as it passes through wholesalers and retailers. Table 32: Wholesale and retail prices for pineapple varities
Pineapple variety Farmer to Wholesaler to Retailer to wholesaler retailer Consumer HYV Kalender Rs 4 to Rs 5 Rs 8 to Rs 10 Rs 15 to Rs 25 (Kumarghat) Local Variety Rs 7 to Rs 8 Rs 8 to Rs 10 Rs 10 to Rs 15 Source: Field survey Table 33: Unit prices for processed pineapple products
Processed pineapple Unit size Unit Price (Rs) Jam 100 gm bottle 15 500 gm bottle 65 Juice 100 ml bottle 12 700 ml bottle 45 Squash 700 ml bottle 65 Slice 850 gm can 90 Source: Piyush Agro Tech Food Production unit, Agartala 4.6.5.2.8 Constraints-Solution Matrix
The table 34 illustrates constraints faced by farmers for key livelihood factors and critical interventions points to overcome constraints.
Table 34: Constraints faced by pineapple farmers and interventions points
Factor Constraints faced by small farmers Critical intervention points Input sourcing Availability of fertilizers is low when Organise the farmers to procure the demand is high as a result prices inputs collectively to negotiate better go up by 50-200% in peak demand prices and reduce overhead costs. The times. farmers can procure inputs well in Traders indulge in hoarding as the advance of sowing season. state does not have its own sources of List out input suppliers at Agartala fertilizers and pesticides supply. and sub division markets and establish tie ups with them for timey procurement of inputs. Production Flowering is low. Harvesting is done • Making available good planting
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practices and in June to August and field remains material and nursery promotion. technology unutilized for rest of the year. Staggering method helps take two used Farmers are not aware of new crops in a year and it costs Rs 200 per improved techniques, such as 1000 pieces. staggering method, that improve Establish linkage with local banks and productivity significantly. government schemes such as SGSY to In some villages pump sets are not help famers in accessing loan for available and farmers have to hire purchasing pumpsets and other them from other villagers @ Rs 80 improved equipments. per hour. Create village level cadre of technical Extension services from agriculture persons to provide paid technical department are not available on time. services to farmers. Regular training and exposure visits to best practitioners in the local area can help the poor farmers. Access to Inputs from the government Appoint implementing agencies and support department are not available on time develop village level service providers services and the quality of inputs procured to help famers link with need based provided by from private players is doubtful. government schemes and private government • Due to lack of sufficient cold storage services. and private facility in the state, farmers sell the Develop village level cadres to help agencies produce immediately after the harvest extend technical services to the at throw away prices. farmers. The labour cost is high at Rs 150 per Set up new cold stores after feasibility day due to availability of works under study. NREGA at Rs 100 per day. Promote use of latest machines and tools that work faster and save cost. Access to Bank loan procedures require Organize poor famers in SHGs to link finance documentation of land ownership them with local banks to ensure their papers, which most farmers do not financial inclusion. have. This adversely affects their Develop partnership with financial access to required credit. institutions and MFIs and encourage MFIs working in the area provide them to develop loan product for loan, but their loan products don’t Pineapple cultivation based on its match the farmers expectations. economics. Market access • After the barbed fencing between There is a need to promote legal trade India and Bangladesh 2-3 years back, between Tripura and Bangladesh to illegal trading of pineapple has come cater to the demand there. down considerably along the porous Introduction of new staggering border. method helps farmer to manage Farmers sell individually to the production as per market requirement retailer/wholesaler resulting in higher to check market glut.
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overhead marketing costs. There is scope for collectivizing Due to declining profits from farmers to sell collectively and directly pineapple cultivation, the farmers are to higher order markets, and shifting to tea and rubber plantations. pineapple processing units in the state for better price realization. Cooperation The farmers have low affinity for Guide farmers for collective sourcing among farmers collective inputs sourcing and crop of inputs and marketing to reduce and institutions selling resulting in high operating operational costs. building costs. Govt. policies Blockage of roads and civil unrest Inclusion of poor tribal and and external risks raising cost of inputs and development of local market system ecosystem market failure rendering pineapple will reduce dependence on external cultivation unviable. markets.
4.6.6 Project Intervention
Project can promote pineapple culture to be taken up by an individual family. Individual farmer will do the production but sourcing of inputs and marketing can be done collectively. Project need to work on strategies and capacity building inputs suggested in the previous section and by adopting an implementation plan described later. Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.6.6.1 Economics of pineapple cultivation
Calculations are done for pineapple cultivation over 1 kani (0.4 acre). Costs of various inputs and outputs are based on information collected from villagers, market players and agriculture department. The rate of interest paid by the farmers is 1% per month. It is assumed to be taken for three months. The commission to agent is 7%. The wholesale price of pineapple is taken as Rs 6 per piece.
Table 35: Economics of pineapple cultivation Particular Unit Quantity Unit Total Price(Rs) Amount(Rs) Income Sale of pineapple Number 17600 6 105600 Cost Land Preparation and planting Jungle clearance and removal of weeds Number 8 100 800 Layout(90cmX60cmX30cm in double Number 2 100 200 row method Curing of suckers/planting materials Number 8 100 800 Planting of suckers Number 20 100 2000 MART, Noida 89
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Operational cost during the year planting Earthing up top up dressing and Number 10 100 1000 mulching twice etc. Weeding, cleaning of inter space etc. Number 8 100 800 Plant protection as required Number 2 100 200
Cost of materials Planting materials (suckers Number 17600 0.75 13200 including carrying) FYM/Vermi compost/bio fertilizer MT 4 1000 4000 Urea @ 10 gm per plant for top dress Kg 176 6 1056 R.P. @ 10gm per plant Kg 176 6 1056 M.O.P @ 10gm per plant Kg 176 7 1232 Wire fencing/bamboo fencing Lump sum 4500 4500 PPC Lump sum 1000 1000 Signboard etc. Lump sum 2000 2000
Marketing expenses Commission 0.07 7392 Transportation to nearby market Trip 500 500 Misc Lump sum 1000 1000
Total running cost 40936 Income 64664 Depreciation 400 Profit before interest 64,264 Interest (12%) 42,936 1288.08 Net profit 62976
ROI 146.67% Payback period (year) 0.66 Fixed capital, working capital and total capital requirement Fixed capital Unit Unit price Life Depreciation (Rs) (in year) (Rs) Agriculture implements 1 2,000 5 400
Total fixed capital 2,000 400
Working capital Working capital requirement 40,936 Total capital requirement 42,936 MART, Noida 90
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Sensitivity analysis for pineapple cultivation Parameters Unit Impact on Profit before unit interest What if selling price falls by 20% Rs/kg 4.8 169864
What if costs go up by 20% Rs total 49123.2 56,077
What if business volume goes down by 20% Number 35200 169864
What if selling price goes up by 20% Rs/kg 7.2 275464
What if costs fall by 20% Rs total 32748.8 72,451
What if business volume goes up by 20% Number 52800 275464
4.6.6.2 Comparative analysis of alternative possibilities
The table 36 illustrates input costs, net income and return on investment for pineapple plantation and floriculture (tuberose) plantation.
Table 36: Economics of cash crop plantation Input Production Rate/kg Income Net RoI cost income (%) 1. Pineapple plantation 40936 17600 6 64664 62976 147 2. Floriculture(Tuberose) 33155 3200 25 46844 45160 125 Source: agriculture department data and field survey Note: Net income is calculated after deducting input cost, depreciation and interest cost from gross income.
4.6.6.3 Possibility of setting up processing unit
Pineapple can be processed into juice during the production season. However, setting up such processing units at the village level would require entrepreneurial skills among poor, marketing and technical skills, and ensured market linkages with bulk buyers which poor lack to sustain such processing units. The demand at the village level would be low therefore such units could be strategically located to target customers passing through the national highway or at the block and divisional market. Tie up could also be established with few big private processing units in the state. It is suggested that for first couple of year poor (both individuals and groups) should encouraged for pineapple production, productivity enhancement and market linkages. After couple of years project can identify few individuals/groups with entrepreneurial skills for setting up few processing units. Project staff with marketing skill could be involved for conducting the detail feasibility study before setting up such units.
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4.6.6.4 Implementation Plan for promotion of Pineapple cultivation
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level (3 months) Cluster Select the right cluster in project districts for initiating pineapple promotion based selection on technical feasibility. Identify target block, village and the community. Social Share various possibilities of pineapple cultivation, its cost benefit analysis, and mobilization assess community interest level to take up the activity. and institution Identify the members/groups interested in taking up pineapple cultivation as a building new unit. Initially only a limited number of groups should be encouraged to start the activity. Based on the results of pilots add more members. List out members separately who are already doing the activity and want to either expand or strengthen the activity. Initiate participatory discussion to arrive at consensus on the roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for pineapple cultivation in consultation with the business plan community detailing the economics of the activity, sourcing of inputs, linkages with market players, production practices and technology to be used, and government schemes to be availed. Capacity Leadership training for group members – functions and responsibility to interact building with external players. Training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis) to members using participatory techniques. Technical training on better practices, exposure visits to nearby best practitioners and outside the states as well. Identify suitable government and private agencies that can provide need-based technical and business training at the community level. Identify local level best practitioners. Phase II - Launching of the unit (6 months) Backward Counsel farmers to procure raw materials collectively in bulk to reduce operational linkages costs. List out major inputs suppliers for ensuring quality of inputs and timely availability. Systematize training management. Establish finance support for pineapple cultivation on unit cost basis. Production Implement best practices. Clarity of roles, specialization and continuous skill improvement Bring quality control in production to achieve efficiency, higher productivity at lower costs.
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Better record keeping and financial management. MIS development and multidimensional intervention opportunity. Market access Identify suitable and multiple markets and prepare list of market players with their contact details. Engage in bargaining, marketing of produce and realize better price. Clarify on profit sharing and funds rotation among members in case of group activity. Build System for collaborations and employment Phase III – Up-scaling (9-12 months) Monitoring Set up regular follow up and monitoring system to evaluate units from time to time and evaluation to finds out gaps, take corrective steps and ensure delivery of appropriate extension services. Strengthening Facilitate secondary institution (producer group) to upscale and sustain the Institution initiative. Plan capacity building for strengthening of secondary institutions Diversify activities to increase income Create village level cadres to extend technical and marketing inputs to community at village level. Provide handholding and technical support to secondary institution Legal aspects Compliance to legal implications for excise, sales and VAT (once activity achieves scale it would be required to source inputs directly from outside the state).
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4.7 Pulses cultivation Value Chain
4.7.1 Background
Pulses are rich in protein and their low fat/high complex carbohydrate content help in weight control, reduction of plasma cholesterol for cardiovascular health, low glycemic index prevent/control diabetes, colonic bacterial fermentation help in bowel health and phytochemical content prevent cancer. Pulse crops increase soil fertility through nitrogen fixation: approximately 40 kg of nitrogen per hectare. Agronomic benefits for the succeeding crop are better yield and crop quality. In case of wheat crop it also improves its protein content.
India is the world’s largest pulse producer accounting for 27-28 per cent of global pulse production and is also the largest consumer. India harvest between 12-15 million tones of pulses each year but the yield has been pretty much static for the last 30 years averaging between 250-300 kg/acre. Pulses grew strongly between 2004 and 2009 and enjoyed growth of 9% in 2009 resulting from strong demand from rising population. During the year 2006-07, India imported 1.8 million tones of various pulses, especially from countries like China, Canada and Australia.
As per the state agriculture department the expected food grain production in Tripura is 6.48 lakh tons against the requirement of 8.22 akh tons. Some of the reasons identified for this gap include inadequate adoption of improved technologies, uneven adoption across the farm households, non-availability of adequate quantity of nutrients, inadequate credit flow, and lack of sufficient extension services. Government has decided to focus on area expansion and productivity enhancement to bridge the gap in food grain production. Main pulses grown in the state are arhar, gram, pea, lentil, black gram and moong. Currently 7385 hectares is under pulses cultivation in the state; the target is to increase the area 12500 hectares in 2010-11 for higher productivity. Please refer the table below.
Table 37: Area and productivity for pulse cultivation
District Normal area 2010-11 2011-12 North 1506 2195 2700 West 2342 3140 4325 State total 7385 9500 12500 District Normal productivity 2010-11 2011-12 North 626 800 900 West 649 800 900 State total 651 800 900 Source: Perspective plan for agriculture: 2010-11 and 2011-12, Tripura
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The state’s proposed productivity enhancement strategies include introduction of hybrid varieties /HYV, 100% seed treatment, varietal replacement, use of improved seed, application of lime to check soil acidity, appilciation of micro nutrients, INM/IPM, improved agriculture credit availability and irrigation facility through deep tube wells. This will be achieved through proper training of farmers and provision of extension services.
4.7.2 Feasibility of pulses cultivation
Technical feasibility The agro climatic conditions are suitable for pulses cultivation in the state. A wide range of pulses such as arhar, pea, lentil, black gram, gram, and moong can be grown in the state. Farmers in the state have the basic skills for pulses cultivation. Government support is available in terms of subsidy on farm inputs, exposure and trainings and extension services.
Market feasibility The demand for pulses in the state is higher than the current production level. Therefore, a part of this demand, especially in Agartala and towns area, is met from Siliguri, UP and Delhi. The state has organized market structure: two wholesale markets at Agartala (Maharajganj and Bartala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and 474 village level primary markets, where farmers can sell pulses directly to local consumers. As per market sources, the last few years have recorded average of 10% per annum increase in pulse demand in Agartala wholesale markets.
Economical feasibility The cost of investment for pulses production is Rs 7262 per 0.4 acre (1 kani) which is affordable for a small farmer. The overall income is 14,400 with 73% return on investment. Pulses provide higher income per unit area compared to cereals crops.
4.7.3 Production clusters
Pulses are grown throughout the state. Production is higher in plains compared to hilly area. The major pulses growing areas in the state are Bagafa, Matabari, Jirania, Salema, Manu, Bishalgarh, Kumarghat and Gournagar.
4.7.4 Major usage and byproducts
Pulses are used as daily dietry requirement of the population and by products are used as fodder for livestock.
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4.7.5 Pulse cultivation value chain
4.7.5.1 Figure 8:V value chain Map of Pulses
Consumers Consumers Consumers (Local market)
Retailers Retailers Rs 5600 -6500/q (Agartala) Subdivision/district
Wholesalers Wholesalers Rs 5100-5375/q Subdivision/district (Agartala)
Rs 4400-4800/q Wholesale markets Villager level Siliguri/UP/Delhi traders
Farmers Farmers Rs 2200 -2800/q* (Outside state) (Within state)
Input Suppliers Seeds, fertilizers, agriculture implements, equipment, pesticides/weedicides
* The rates given are for masoor pulse from Uttar Pradesh (UP). And ‘q’ stands for quintal. The state is a net importer of pulses; around 25 MT of pulses per day at Agartala wholesale markets come from Uttar Pradesh, Delhi and Siliguri. For North and Dhalai district demand is met from Silchar and Dharamnagar. Agartala with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004) is a huge market for pulses consumption and depends on pulses coming from both within and outside the state. Producers get around 50% of the value paid by the final consumers; rest is taken by various channel partners. There are 15 subdivision markets and 474 village level primary markets in the state where farmers sell local pulses directly to consumers. From Agartala wholesale markets pulses go to two districts i.e. South Tripura and West Tripura. In the remaining two districts of Dhalai and North pulses come from Dharmanager wholesale market (North Tripura) and Silchar (Assam) wholesale market.
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4.7.5.2 Stakeholders and their roles
4.7.5.2.1 Input suppliers
The main inputs required for pulses cultivation are seeds, fertilizers, pesticides, and agri implements. The suppliers (government and private players) of these inputs are located at Agartala wholesale and district, sub division wholesale markets. Water for irrigation is available from ponds and rivers. All inputs are available in the state and these are procured by wholesalers from other states. Agriculture department makes available high yield certified seeds, power tillers and fertilizers to farmers at subsidized rates.
4.7.5.2.2 Farmers
Farmers can broadly be categorized in two: subsistence farmer and progressive farmer. Subsistence farmer follows traditional practices while progressive farmer follows latest practices promoted by the agriculture department (refer table). Progressive farmer gets higher yield and better price by selling the produce in the higher order (divisional) market.
Table 38: Comparative practices of subsistence and progressive farmers
Subsistence farmer Progressive farmer Location West District North District Village Tribal Non-tribal Landholding 1.2 acre 1.2 acre Land used for pulse cultivation 0.2 acre 0.4 acre Engagement in activity September-November November –February Sourcing of seed Local retailer Government store Use of organic manure No Yes Application of chemical fertilizers No Yes Application of pesticides No Yes Labour hired for Weeding, Harvesting Sowing, weeding, harvesting Time spent per day on average Nil 2 hours basis Selling to Village trader coming to village Village Trader and Town Trader Production (kg) 80 300 Price received last year Rs 50/kg Rs 55/kg Issues and needs Not sure whether soil is High cost of inputs and appropriate or not their timely availability Needs training on latest Needs exposure and part of package of practices and collective to source inputs technologies and sell produce
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4.7.5.2.2.1 Input sourcing
Farmers procure inputs from the government stores and private wholesalers and retailers. They however face problems in procuring chemical fertilizers from the government stores due to its persistent short supply. This pushes their prices by 1.5 to 2 times in open market as market players indulge into hoarding. Cow dung is available within the villages, which farmers collect individually just before the production season starts. Farmers buy inputs in cash. River and ponds are sources of lift irrigation. They do it by using their own pump sets or by hiring them.
4.7.5.2.2.2 Production practices and technology used
Farmers grow a variety of pulses such as arhar, pea, lentil, balckgram, and gram for both rabi and kharif season. Small farmers cultivate them over small portions of land of 0.1 acre to 1.2 acre. Land preparation is done using power tillers and manually.
There is an increasing trend of power tiller use as it saves time and is affordable for small farmers. It is used for land preparation that is normally done two to three times and costs Rs 150 per hour. In the kharif season pulses are grown in around 60% area and in the rabi season in 40% area. Lift irrigation is used twice: at the time of land preparation and during production phase. Farmers use both chemical fertilizers and organic manure (cow dung and mustard oil cake) at the time of land preparation. Chemical fertilizers used include super phosphate, di-ammonium phosphate, muriate of potash and urea. Urea is used in split doses whereas other fertilizers are used once when the land is prepared. The yield varies from farmer to farmer due to low adoption of package of practices suggested in government training and exposure programmes.
4.7.5.2.2.3 Market access
Farmers sell large quantities of pulses to wholesalers in subdivision and Agartala wholesale markets. A small percentage of vegetables are sold to local traders who visit villages and also in local weekly markets (haats). Transactions are mainly in cash.
4.7.5.2.3 Wholesalers
There are 22 wholesalers in Maharajganj Market. Daily 25 MT of pulses come from UP, Delhi and Siliguri to Agartala by truck. It comes in 25 kg to 100kg pack size. From wholesale market pulses go to west and south Tripura districts and part of Dhalai District. North District and part Dhalai District pulses come from Dharmanagar whole and Silchar (Assam) wholesale market.
2008 2009 2010 Pulses Volume per day 25 MT 28 MT 30 MT
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4.7.5.2.4 Retailers
Retailers procure pulses from wholesale market in the morning at 6am-7am and sell in retail market from morning 7 am to 12 am and evening 5 pm to 9.30 pm. Durga Chowmuhani retail market has 15 municipality registered retailers. They pay the municipality one time charge of Rs. 28,000 and monthly Rs. 250. A retailer buys 25 kg to 250 kg at a time. Transportation cost from wholesale market to retail market in town area is Rs 10 per bag. Retailer pays Rs 6 per bag as labour cost to wholesaler towards loading and unloading. Retailers sell pulses to consumer in cash and credit.
4.7.5.2.5 Transporters
Transporters are located at Delhi and Guwahati. Pulses come in 6 wheeler truck containing 8 MT to 10 MT. From Delhi trucks first come to Guwahati where its contents are loaded in a local transport. Total transportation cost from Delhi to Guwahati is Rs 180 to 200 per quintal and from Guwahati to Agartala it is Rs 350 per quintal. From Siliguri to Agartala transportation cost is Rs. 550 to 600 per quintal and takes around 6 days. Insurance charge per quintal is Rs 10. Total labour charges for loading and unloading is Rs 6 per bag and is borne by the retailers. Within the state local transportation cost is borne by the retailers. Rickshaw, auto van, and mini truck are common modes of local trasportation. There are 125 to 150 labours in Maharajganj wholesale market.
4.7.5.2.6 Consumers
A large majority of population consumes pulses in the state. Consumers purchase pulses in retail from weekly markets and grocery retailers in town area. Prices vary from pulse to pulse and place to place ( refer table 39).
Table 39: Wholesale and retail prices of pulses coming from various markets.
Name of State Prices at UP/Delhi/ Wholesaler to Retailer Retailer to Consumer Location Siliguri (Maharajganj) U.P (Masoor pulse 1. Bareilly Rs 44 to 45 per kg Rs 51 to 55 Rs 56 to 60 per kg 2. Baharaich Rs 47 to 48 per kg Rs 53.5 to 53.75 Rs 58 to 65 per kg Delhi Moong pulse Rs 60 per kg Rs 66 per kg Rs 72 to 78 per kg Siliguri Matar pulse Rs 37 to 40 per kg Rs 42 to 45 per kg Rs 52 to 60 per kg Source: field survey at wholesale and retail market in Agartala
4.7.5.2.7 Constraints-Solution Matrix The table 40 below illustrates constraints faced by farmers for key livelihood factors and critical interventions points to overcome constraints.
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Table 40: Constraints faced by farmers and interventions points Factor Constraints faced by small and Critical intervention points marginal farmers Input sourcing • Often the quality of the seeds available List out input suppliers at Agartala in the open market is not good. It and sub division markets and establish affects productivity. tie ups with them for timey Availability of fertilizers is low when procurement of inputs and also for the demand is high as a result prices ensuring quality of inputs. go up by 50-200% in peak demand Organise farmers to procure inputs times. collectively to negotiate better prices The state does not have own supply of and reduce overhead costs. Farmers pesticides and fertilizers encouraging can procure inputs in bulk well in hoarding by traders and high farm advance of sowing season. input costs. Farmers travel to Agartala and subdivision towns to source various inputs resulting in higher transportation cost. Production Farmers are not sure Pulse cultivation should be promoted practices and whether the land is suitable for pulse after suitable technical assessment of technology cultivation or not as many are doing it the soil with support of agriculture used for the first time as part of agriculture department to suggest relevant department initiative to promote package of practices. pulses cultivation in the state. There is a need to organise awareness Pulses cultivation requires 4-5 months camps and exposure visits for farmers which some farmers feel is more to successful practices within the state compared to vegetable cultivation that to learn economic benefits of pulse gives two to three crops in the same cultivation. period. Linkage with local banks and Extension services from agriculture government schemes such as SGSY department are not available on time. can help famers in accessing loan for Farmers don’t upgrade their skills and purchasing pumpsets and other knowledge resulting in low yields. improved equipments. Access to Quality of inputs, especially seeds and Appoint implementing agencies and support pesticides, procured from private develop village level service providers services players is often doubtful. to help famers link with right private provided by Farmers who take one-time training players to access quality inputs and government from agriculture department don’t get need based government schemes. and private the desired yield as they don’t adopt Promote village level cadres to extend agencies practices fully. technical services to farmers. Availability of work under NREGA at Promote use of latest machines and Rs 100 per day has pushed labour tools such as power tiller that work costs to as high as Rs 150 per day. faster and saves cost.
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Access to Availability of required credit on time Organise poor farmers in SHGs to link finance is an issue. Bank loan requires lot of them with local banks to ensure their paper, which farmers mostly cannot financial inclusion. furnish as most farmers do not have Develop partnership with existing proper papers against their land. MFIs and encourage them to develop MFIs working in the area provide loan products for pulses cultivation loans but charge high interest rate. based on its unit cost. Market access Farmers sell individually to the Encourage farmers to sell collectively retailer/wholesaler resulting in higher and directly to higher order markets at overhead marketing costs sub division towns and Agartala for Farmers get around 50% of value paid better price realization. by the final consumers. Cooperation There is low affinity among farmers for Farmers can take up pulse cultivation among collective action for sourcing of inputs activity individually however souring farmers and and sale of pulses resulting in higher of inputs and marketing can be institutions operating costs. planned collectively. building Govt. policies Blockage of roads and civil unrest may Inclusion of poor tribal and and external lead to increase in input costs and development of local market system ecosystem market failure making pulses will reduce dependence on external cultivation unviable. markets.
4.7.6 Project Intervention Project can promote pulse cultivation to be taken up by an individual family. Individual farmer will do the production but sourcing of inputs and marketing can be done collectively. Project need to work on strategies and capacity building inputs suggested in the previous section and by adopting an implementation plan described later. Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.7.6.1 Economics of pulse cultivation Calculations have been done for 1 kani (0.4 acre) of land for pulse cultivation activity. Cost of various inputs and outputs are based on information collected from villagers, market players and agriculture department. The rate of interest paid by farmers is 1% per month. It is assumed to be taken for three months. The wholesale price of black gram is Rs 60/kg.
Table 41: Economics for blackgram cultivation Particular Unit Quantity Unit Total Amount(Rs) Price(Rs) Income Sale of blackgram Quintal 240 60 14400
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Cost Tillage operations cost Lumpsum 1 160 160
Irrigation Lumpsum 1 150 150 Seed cost kg 8 55 440 Use of fertiliser MOP kg 5 6 30 Super Phosphate (SSP) kg 40 6 240 Urea kg 6 5.75 34.5 FYM kg 1600 0.33 528 Plant protection measures Lumpsum 1 50 50 Labour involvement Manday 11 100 1100 Marketing expenses Commission 14400 0.07 1008 Transportation to nearby market Trip 1 200 200 Packaging and bagging Number 5 10 50
Misc Lumpsum 1 500 500 Total running cost 4494.75 Income 9905.25 Depreciation 340 Profit before interest 9565 Interest (12%) 3% 8,963 185.84 Net profit 9379 ROI 151.41% Payback period (year) 0.625
Fixed capital, working capital and total capital requirement Fixed capital Unit Unit price Total amount Life (in Depreciation (Rs) (Rs) year) (Rs) Farm equipments/tools 1 1,500 1,500 5 300 Miscellaneous 200 5 40 Total fixed capital 1,700 340
Working capital requirement 4495 Total capital requirement 6195
Sensitivity analysis for black gram cultivation
Parameters Unit Impact on unit Profit before or cost interest What if selling price falls by 20% Rs/kg 48 6685.25
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What if costs go up by 20% Rs total 8715 8666
What if business volume goes down by 20% no. 192 6685.25
What if selling price goes up by 20% Rs/kg 72 12445.25
What if costs fall by 20% Rs total 5810 10464
What if business volume goes up by 20% no. 288 12455.25
4.7.6.3 Comparative analysis of various possibilities
The table 42 below illustrates input cost, market rate per kg, income, net income and return on investment for various pulses grown by farmers. Table 42: Economics of various pulses
Pulses Input Production( Rate/kg Income Net RoI(%) cost kg) income Black gram 4495 240 60 14400 9379 151.41 Moong 4327 240 50 12000 7152 118.68 Lentil 3514 192 50 9600 5590 107.21 Pea 3973 240 50 12000 7517 132.51 Source: agriculture department data and field survey. Note: Calculations are done for 0.4 acre of land. Net income is calculated after deducting input cost, depreciation and interest cost from gross income.
4.7.6.3 Possibility of setting up processing unit
Pulses can be processed by setting up pulse mill. However, setting up such processing units at the village level would require high entrepreneurial skills, marketing and technical skills, and ensured market linkages with bulk buyers which poor lack to sustain such processing units. The demand at the village level would be low and marketing of products outside the village would require linkages with wholesalers and retailers. It is, therefore, suggested that for first couple of years poor (both individuals and groups) should encouraged for pulses production, productivity enhancement and market linkages. After couple of years project can identify few individuals with entrepreneurial skills to experiment setting up few processing units. Project staff with marketing skill could be involved for conducting the detail feasibility study before setting up such units.
4.7.6.4 Implementation plan for pulse cultivation
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level (3 months) Cluster selection Select the right cluster in both project districts for initiating pulse MART, Noida 103
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cultivation based on technical feasibility. Identify target block, village and the community. Social mobilization Share various possibilities of pulses cultivation, its cost benefit analysis, and institution and assess community interest level to take up the activity. building Identify the members/groups interested to take up pulse cultivation as a unit. Initially only a limited number of groups should be encouraged to start the activity. Based on the results add more members. List out members separately who are already doing the activity and want to either expand or strengthen the activity. Initiate participatory discussion to arrive at consensus on roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for pulses cultivation in consultation with business plan the community detailing economics of the activity, sourcing of inputs, linkages with market players, production practices, appropriate technology providers, and government schemes to be availed. Capacity building Leadership training for group members–functions and responsibility to interact with external players. Impart business and marketing training (costing, pricing, accounting, sales and marketing, negotiation, market analysis) to members using participatory techniques. Technical training on better practices, exposure visits to best practitioners within and outside the state. Identify suitable government and private agencies that can provide need- based technical and business training at the community level. Identify local level best practitioners as resource persons. Phase II – Establish backward and forward linkages (6 months) Backward linkages Counsel farmers to procure raw materials, machines and equipments collectively in bulk to reduce operational costs. List out major inputs suppliers for ensuring quality of inputs and timely availability. Systematize farmer training management Establish finance support for pulse cultivation. Production Implement best practices. Develop clarity of roles, specialization and continuous skill improvement Set standards in quality control in production to achieve efficiency, higher productivity and at lower costs. Impart training in record keeping and financial management. Develop MIS and multidimensional intervention opportunity. Market access Identify suitable and multiple markets Prepare list of market players with their contact details. Encourage farmers to do simple value addition such as sorting and grading to get better prices. MART, Noida 104
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Training in marketing to draw better price for produce. Clarify on funds rotation and profit sharing among members in case of group activity. Develop systems and collaborations for more employment Phase III – Up-scaling (9-12 months) Monitoring and Set up regular follow up and monitoring system to evaluate units from evaluation time to time to find out gaps, suggest corrective steps and ensure delivery of appropriate extension services. Strengthening Facilitate secondary institution (producer group) to upscale and sustain Institution the initiative. Plan capacity building for strengthening of secondary institutions Diversify activities to increase income Create village level cadres to extend technical and marketing inputs to community at village level. Provide handholding and technical support to secondary institution Legal aspects Compliance with legal implications for excise, sales and VAT (once activity achieves scale it would be required to source inputs directly from outside the state).
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Annexure 1: List of stakeholders met during the visit
S.N Name Designation/Agency Contact details o 1 Mr. A. K. Srivastava Project Director, NERLP, Guwahati 0361-2331233 and his team 2 Sri Kumar Alok Commissioner cum Secretary, Rural Development Department, Govt. of Tripura 3 Dr. D.Basu Joint Secretary , Department of Rural 0381-2415584 Development, Govt. of Tripura 4 Dr. Amarendra Singh Consulatnt, World Bank 5 Mr. Shanti Riyan Director, Fisheries, Govt. of Tripura, Nehru 0381-2226294 Complex, Agartala 09436542235 6 Ms. Soumya Gupta District Collector, North District 7 Mr. C.R. Director, Horticulture Govt. of Tripura, Nehru 0381-23247309 Bandyopadhyay Complex, Agartala 09402168209 8 Mr. R.K.Noatia Project Director, DRDA, Kailashar, North Tripura 09436182837 9 Mr. Ranjit Kar Project Director, DRDA, Old Secretariat Agartala, 09436518100 West Tripura 10 Ms. Marie Korner Socio Economist, Indo-German Cooperation 09492168070 Project 11 Prof. P.C. Sikligar Professor, NIRD 09707834701 12 Md. Selim Reza Chief Executive Officer, INBAR, 09436134425 [email protected] 0381-2397048 13 Ashim Kumar Das Assistant General Manager (Business 9854028288 Development, Guwahati, [email protected] 0361-6115556 14 Dr. Binay Singh Director, NIRD, North Eastern Regional Centre, 09435019953 Guwahti , [email protected] 0361-2304791 15 A.K. Lahiri (I.F.S retd) [email protected] 0983681507 16 S K Dalal Consultant, Retd. Additional Commissioner - 011-27190216(R) Crops, [email protected] 17 Mr. Anukul Paul Areca nut wholesaler at Battala market 18 Mr. Biswanath Paul Areca nut retailer at Durga Chowmuhani Market 19 Mr. Harendra Das President, Maharajganj, Wholesale Fish Market 9436121049 Association 20 Mr. Manindra Das Fish Wholesaler, Maharajganj Market 21 Mr. Dilip Paul Manager, Pijush Agro Tech. Food Production, M-9862203302 Agartala 22 Mr. Prabhat Das Pineapple wholesaler, Agartala
23 Sri Indu Bhusan Deb Pineapple Retailer, Durga Chowmuhani Retail Market, Agartala 24 Mr. Rupak Majumder, Goat wholesaler, Maharajganj, Agartala MART, Noida 106
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25 Mr Jhantu Paul Goatery Retailer, Batala Retail Market 26 Sri Sukrai Debbarma Piggery Retailer, Lake Chowmuhani Retail Market 27 Mr. Sadhu Banik Fish wholesaler, Batala market, Agartala 0381-2300667 28 Sri Bhakta Das Fish Retailer, Gole Chakkar Fish Market, Agartala 29 Mr. Babul Sarkar Secretary, Potato and Onion Wholesaler 09436121054 Association, Maharajganj Bazar, Agartala 30 Sri Parimal Saha Vegetable retailer, Battala Retail Market. 31 Mr Sentu Paul Potato retailer, Durga Chowmuhani Retail Market 32 Mr. Sailen Debbarma Piggery wholesaler, Jirana Bazar, ADC area 33 Mr. Gouranga Paul Poultry wholesaler, Maharajganj Bazar, Agartala 34 Sri Gopal Ghosh Poultry retailer, Durga Chowmuhani Retail Market 35 S.K. Dugar, Manager Bhuturia Brothers Ltd. Cold Storage 0381-2226227 36 Sri Kishore Saha Manager, Paul Road Ways 09436569071 37 Sri Rajib Banik secretary, Tripura Grocery whole /sale 9436120565 association, Maharajganj Market 38 Mr. Tulsi Bhusan Paul Pulse wholesaler, Maharajganj whole sale market 9436581599 39 Mr. Chanu Das Pulses retailer, Durga Chowmuhani Retail Market 40 Sri Hangshu Kumar Vegetable, wholesaler cum commission agent, 09862081502 Saha Maharajganj Market, Agartala 41 R.N. Chowdhury MD, Tripura Co-operation Milk Producer union 0381-2353524 Ltd, Agartala 42 Sri. Dilip Dey Milk retailer, Agartala 43 Sri Jhunu Deb Vegetable wholesaler cum commission agent, 9862870590 Batala market 44 Mukesh Thakkar AGM, NABARD 45 Dhiren Das Senior Executive, RGVN, Agartala 09863495482 46 Pijus Bonik Agro tech Food Processing Limited 09436122222 47 AK Chanda Joint Director Directorate of Stat. and Economics 48 Sujit Saha Sabji Wholesaler, Maharajganj, Agartala 49 Pinto Saha Potato Wholesaler, Maharajganj, Agartala 50 Mridul Giri Fish Trader, Agartala 9436801355 51 Jamsed Ali Animator, DRDA, north district 9436509995 52 Krishna Mohan Sarma Master, NREGA, North district 9436799541 53 Samit Roy Choudhury BDO, Kathalia block 54 SB Nath BDO, Gaurnagar block 55 S Bhattacharya BDO, Panisagar block 56 R Biswas BDO, Kumarghat block
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Annexure 2: List of villages visited
S.No. Village name District Block 1 Gajaria West District Bishalgarh 2 Kulubari West District Boxanagar 3 Rabindranagar West District Kathalia 4 Bejimana West District Kathalia 5 Manaipathan West District Kathalia 6 Ishan Chandra Nagar West District 7 Bilthai North District Panisagar 8 Purba Tilthai North District Panisagar 9 Unokoti North District Gournagar 10 Sonamiri North District Bilhalgarh 11 Sukantanagar North District Bishalgarh 12 Kaulikura North District Guarnagar 13 Deoracherra North District Guarnagar Source: Field survey
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Annexure 3: Processing unit for puffed rice making
(Source: NABARD’s Potential Linked Credit Plan 2010-11, West Tripura District)
Assumptions The activity can be taken by a SHGs or a federation One group member assumes a role of manager cum supervisor Community makes investment in land, building and godown Market linkages is established locally and at Agartala Group member undergo business and marketing training Finance is available under a government scheme such as SGSY Particular Unit Quantity Unit Amount Price(Rs) (Rs) Income Sale of puffed rice Quintal 71.25 1775 126469 Cost – non recurring Land, building and godown Machinery and equipment Puffed rice making machine with Number 1 65000 65000 thermometer model Belt conveyer set with feeding and delivery Number 1 10000 10000 Essentry Chalna with air blower Number 1 8000 8000 Motor- 1HP and 2HP complete set Number 1 10500 10500 Front chalna, drum chalna complete set Number 1 2500 2500 6 KV a generator set alternator Number 1 28000 28000 Richshaw van Number 1 7500 7500 Weighing scale and balance Number 1 4500 4500 Subtotal (Rs) 136000
Pre operative expenses Installation 12500 Chatal Lumpsum 15000 Water arrangement Lumpsum 15000 15000 Packing forward Lumpsum 2500 2500 Miscellaneous Subtotal (Rs) 47000 Furniture and fixture Wooden chair, table, bench, cash box Set 1 13000 13000
Total non recurring expense (Rs) 196000
Recurring expense Raw materials
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Rice Quintal 75 1100 82000 Salt Lumpsum 3000 Subtotal A 85000 Salary and wages Manager cum supervisor Skilled worker Number 2 2500 5000 Semi skilled Number 1 2000 2000 Helper and van man Number 3 1000 3000 Subtotal B 10000
Other monthly recurring expenses Tax and insurance Travelling Packing materials Fuel Gunny bag Number 100 15 1500 Miscellaneous 1500 Subtotal C 19000 Total monthly recurring expenses 114000
Total cost of project 310000
Depreciation of machinery and equipment @ 1133 10% Depreciation on furniture @ 15% 163 Interest on total project cost @ 12% 3100 Gross profit (Rs) 8104
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Annexure 4: List of secondary sources/references
http://www.gujagro.org/agro-food-processing-fabricated-23.pdf
http://www.crnindia.com/commodity/potato.html
http://www.commodityonline.com/news/India-potato-price-seen-falling-supplies-to- rise-20-28255-3-1.html
http://www.ibef.org/industry/foodindustry.aspx
http://www.fao.org/DOCREP/005/y4358E/y4358e04.htm
http://www.avrdc.org/publications/socio/veg_industry/India.pdf
http://www.rediff.com/money/2007/may03pulses.htm
http://www.researchandmarkets.com/reports/1081509/pulses_in_India.pdf
http://www.ats.agr.gc.ca/asi/5325-eng.pdf
http://www.fao.org/es/esc/common/ecg/98/en/pulsesStudy.pdf
http://www.nhb.gov.in/Horticulture%20Crops/Pineapple/Pineapple1.htm
Economic survey 2008-09, NABAR’ potential linked credit plans
Economic review 2008-09 and Human Development Report 2007
Rural marketing and agricultural marketing by Kiran Sankar Chakraborty, A case study of Tripura
Perspective plan for 2010-11 and 2011-12 by department of agriculture, Directorate of Agriculture, Agartala, Tripura, West
Approved Annual Plan 2010-11, Govt. of Tripura, Department of Agriculture, Agartala
Unit costs for farm sector activities for 2005-06, Tripura state by NABARD
Unit for various economic activities by DRDA, West Tripura District
Revised perspective plan for 2010-11 and 2011-12 and project profile for livestock activities by Directorate of Animal Resources Development, Government of Tripura
Activities and achievement, Animal Resources Development Department, Government of Tripura
State Human Development Report 2007
Development and Growth in North East India, Strategy Report, World Bank, June, 2007
Potential linked credit plan 2010-11, North Tripura Disatrict, NABARD, Agartala
Potential linked credit plan 2010-11, West Tripura Disatrict, NABARD, Agartala MART, Noida 111
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Annexure 5: Stakeholders Consultant Report Livelihood Based Agri Business and Market Studies for North East Rural Livelihood Project
Stakeholders Consultant Report, Tripura State February 2011
Submitted by
MART A-32, 1st Floor, Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995 www.martrural.com
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Content
1. Background 114
2. Stakeholders Consultant Report 114
3. Feedback to be incorporated in final report 117
Annexure 1: Presentation by PD, NERLP 119
Annexure 2: Presentation by MART 126
Annexure 3: List of participants 151
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1. Background:
MART submitted draft report to NERLP and World Bank by email to receive their feedback on the report. Three kinds of consultations took place that gave feedback on the draft report are;
Written feedback from NERLP (23rd December 2010) and discussions with PD, NERLP in Delhi.
Feedback from World Bank via forwarded email from NERLP on 26th January 2011
Stakeholders consultation workshop in Tripura on 11th February 2011
The action to be taken by MART on feedbacks received through consultations is capture under section ‘feedbacks to be incorporated in final report ‘ described later in this report.
2. Stakeholders’ consultation workshop
Objective : To share findings and recommendations of draft report Date : 11th February 2011 Venue : Conference hall No. 2 New Secretariat Building, Agartala, Tripura Time : 10.30 am to 1.30 pm A stake holder’s consultation workshop was organized to pre sent the draft findings of Tripura prepared by MART for ‘Livelihood based Agri-business and Market studies for North East Rural Livelihood Project’, a World Bank funded Project. The workshop was attended by 20 participants including Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura., Shri Alok Kumar Srivastava, Project Director, NERLP and Shri Sanjay Gupta, MART, New Delhi. The list of participants is annexed.
Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura started the workshop, welcomed participants in the consultation workshop and requested for their active participation in discussion. He then invited Shri Alok Kumar Srivastava, Project Director, NERLP to share details related to the NERLP.
Presentation by Project Director, NERLP
Shri Alok Kumar Srivastava explained objectives and genesis of NERLP through a power point presentation that is annexed. The key points made by him includes:
Immediately after the independence, interventions by the government in rural development became necessary due to alarming number of poor in early 50’s. Govt. initiated varieties of poverty related schemes such as FFW,
IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP, SGSY, PMGSY, MGNREGA, State Govt. Social Housing and Poverty Alleviation Schemes etc.
The schemes were mainly individual oriented to generate employment. It also resulted in creation of durable community assets such as roads, footpaths and meeting centers and multiple use assets such as Panchayat Ghar, Schools, Community Halls, Marriage Halls were also created. However, key issues, involved in the process included proper selection of beneficiaries and quick disposal of assets created. The key question is the choice in between development and populism.
NERLP is the first multi state project unlike the state specific once lunched /undergoing elsewhere. In view of sheer magnitude, linguistic differences, varying terrain, and international boundaries it was decided to phase out the process. Also the expression REGION was replaced by RURAL. North East Livelihood Promotion Society was constituted and registered at Guwahati in May, 2009.
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NERLP Phase-I started with World Bank assistance by the Ministry of DoNER. Spread over 5 years, it will cover the states of Mizoram, Nagaland, Sikkim and Tripura. The phase-II after 5 years from now will cover the states of Assam, Meghalaya & Manipur.
A total of 3 lakh household proposed to be covered in 58 blocks of 9 districts of 4 states. Each state will have 2 districts except Sikkim wherein 15 panchayat wards have also been included from the 3rd district. Tripura will account for about 50% of the households due to huge density of population and correspondingly large number of BPL people.
The institutional arrangement includes – RPMU at Guwahati, DPMU in 8 districts and PFT at Block level based on MP and Bihar pattern. State coordinator appointed by the project to help and coordinate from time to time, however, fund flow will not be through him. It will be from World Bank to DEA/DoNER to RPMU to DPMU to PFT and finally to SHGs and other Community Institutions (CDG, YG, PO etc.)
After Shri Alok K Srivastava finished his presentation he requested Shri Sanjay Gupta of MART to present the draft report findings.
Presentation by MART
Shri Sanjay Gupta shared the objectives of the stake holder’s workshop which was to
Share findings on livelihood status Facilitate discussion on . Proposed implementation . Envisaged roles and responsibilities of project partners
It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and non-farm sectors. The specific objectives were
It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and non-farm sectors. The specific objectives were
Understanding existing infrastructure, resources , support services, major occupations, production systems, technology, policy environment and potential for growth Conduct market assessment and value chain analysis for potential livelihood activities Suggest viable income enhancement strategies for potential farm, off-farm and non-farm sectors Suggest business plans for appropriate livelihood interventions for potential activities Under the context setting, the 8 step study methodology and process, which was shared in the first Stakeholder workshop was then recapped for the forum. Subsequently, MART’s 3M (Micro Finance, Micro Markets, and Micro Planning) concept which was the basis of the study approach was explained to the forum. The field visit was done in 2 phases. In the first 3 villages were visited and in second phase coverage of 10 villages, 5 each in the 2 project districts of namely North District and West District along with other stakeholders was also shared with the forum.
The following section shared the sector wise livelihoods profile across agriculture, NTFP and Animal Husbandry. Major livelihoods across various sectors, seasonality of availability, marketing channels of marketed surplus at the community level were then shared with the forum. It was quite clear that the village and haat level marketing mechanism. Moreover, information on various marketing platforms available in the vicinity of the villages was shared with the forum. Information on Infrastructure, Skill and Financial Institutions at the village level, giving a feel of the constraints the region faces, was shared with the forum. MART, Noida 115
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Based on the potential ascertained and the 1st Stakeholders’ Workshop five potential activities were identified which were then analyzed through a Value Chain Approach. Henceforth, the value chain analysis of 5 major activities viz. potato, vegetables, pulses, pineapple and fish culture wherein 3 aspects (1) movement of the respective produce/products from the producers to the market players, (2) gaps and constraints in the activity and (3) recommended interventions were shared with the forum.
Finally, three phase implementation plan including phase I – preparedness at the community level (cluster selection, social mobilization and institution building, preparation of business plan, capacity building). Phase-II – Launching of the (backward linkages, production, market access and convergence) and Phase III- Up-scaling (monitoring and evaluation, Strengthening Institution, legal aspects)
Proper implementation of the project should include repeat training for community for improvement of their technical knowledge, skill development and entrepreneurial aptitude. He also mentioned that collectivization of efforts would yield better result instead of individual efforts, be it in procuring inputs/raw materials and/or marketing of the produce.
Comments and suggestions by participants
After Shri, Sanjay Gupta finished his presentation, Shri Alok Srivastava invited the participants to share their observation and comments which are captured below.
Shri Rajesh Pandey, DC, West Tripura district initiated the discussion and he expressed his appreciation for the report findings presented. He did not hesitate to say that he came to know several aspects of rural livelihoods from the findings to which he was not even aware despite last five year in rural development department. He shared that like other development projects, implementation of this project would also require active participation of line departments which won’t be any issue in his district. He , however sought clarity on mechanism to share the report findings with community in villages and the project structure to implement the findings in the field. During the implementation PD, NERLP shared that PIP document provided to the state includes details requested by him. MART representative shared that report findings will be shared by the project staff during the implementation phase.
It was shared that out of 3.5 lakh households, 1.17 lakh tribal households in Tripura have recently been given forest land rights with average landholdings of 1.5 hectare/household. Project need to keep this factor in mind during the implementation phase.
One participant shared that the findings of this study would provide critical inputs for implementation of NRLM in the state.
Project Director, DRDA, North Tripura district said that as group approach would be followed in NERLP, it is necessary that the SHGs should not be burdened with many activities as it happening presently. SHGs should not take up more than 1-2 activities at a time.
Manager from NABARD shared that it has facilitated formation of above 200 progressive farmer’s club in the state and NABARD is willing do convergence with NERLP to facilitate training and exposure programmes for farmers promoted under the project on cost sharing basis. Recently, NABARD has also promoted Joint Liability Group and which could also be included in the project.
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Deputy Director from Panchayat department said that incense sticks making, though an important livelihood activity in the state, has not been mentioned in the presentation. Sanjay Gupta replied that handicraft is mentioned in the draft report submitted and clarified during field visit it was found that it might not be feasible activity for poor as return are low. Participants commented that bamboo and cane cultivation is declining in the state and therefore, bamboo and cane cultivation should be promoted in the state.
BDO, Boxanagar was very forthright in stating that many rural projects, could not fulfill its objectives due to deficiency in delivery system and therefore, for success of NERLP the need is to ensure proper implementation plan and its delivery. Shri Srivastava appreciated the points and said that project would take necessary precautions for delivery of inputs and services under the project.
Couple of participants shared that aromatic/medicinal plants and aloe Vera have good potential therefore, cultivation of such plants may be considered for inclusion in the activities to be promoted by under NERLP. One participant suggested that nursery promotion could be explored as it is commercially successful activity. Similarly, representative from planning and statistical department shared that incense stick making and transportation is a big opportunity in the state and could be promoted in the state. Sanjay Gupta from MART clarified that project can promote new activities after conducting proper feasibility study for them.
It was found during field visits that milk productivity is low and varies from 1.5 to 2 liter per day. Very few households reared hybrid cows. Manger from Tripura Milk Union said that the main bottleneck for low milk productivity in the non availability/scarcity of right kind of fodder and poor animal management practices adopted. He requested that NERLP should look into this aspects and encourage cultivation of improved variety of fodder and artificial insemination in the state.
Joint Director, Fisheries said that ornamental fish is quite lucrative livelihood activity as it fetches Rs.15- 25 per piece and can be promoted under the project for which proper marketing system needs to be placed in the state.
Commissioner & Secretary, Rural Development Department wanted to know about financing mechanism under the project and suggested that it should not be opposite to what is promoted under NRLM. The Project Director clarified that finance will come directly to the district unit of the project and from there it would go directly to the bank account of community members. He also mentioned that such details are captured in the PIP document.
The workshop ended with vote of thanks by Shri Amit kumar Kar, Project Manager, NERLP.
3. Feedbacks to be incorporated in the final report
Feedback received from NERLP /World Action to be taken by MART bank/Stakeholders
Chapter 1: In the step 4, the examples of five The products mentioned are specific to Tripura products should be relevant to a particular state. state only.
Chapter 3: The credit availability scenario should be Noted, credit availability scenario will be covered also adequately elaborated suitably.
Chapter 4
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The process of short listing of products has to be Taken note of, justifications for short listing of elaborated and justified. products will be included under value chain analysis section
All the products should cover the national and Taken note of, Available data from secondary international market status and overall scope of the sources have been already included under products. background sections of each product value chain. However, will include additional relevant data The study must also highlight the changing demand under each value chain. and supply scenario as well as projection of the future trend to ensure that the farmers are able to trace and face the challenges of negotiation with market players and ultimately get full benefits.
The economics of all the sub sectors should be more Detail economics has been given for selected 5 broad, covering all aspects, including marketing. products that include cost of raw material, transportation and fix costs and marketing etc.
More clarity is sought on the nature of details asked for.
The study has not identified the critical intervention Critical intervention points are presented as points in the value chain of the products. In view of strategic action points in tabular form under thereof, it did not cover the investment planning for constrain solution matrix for each product value those critical points. chain. Economics of each value chain activity covers investment points for raw material/inputs, transportation, marketing, fixed cost and working capital requirement wherever relevant.
The study should provide guidance for setting up Taken note of for integrating it under each small, viable and sustainable processing units. product value chain
World Bank Feedback
The UNIT costs/investment required for each The details will be given in tabular form in the livelihood activity studied by them is put in a tabular executive summary also. form starting from the household/SHG/ and cluster level, so that we are clear what is the allocations for investments to be made from the various funds within the project
Also, for each activity in each state they should clearly Potential partners will be mentioned under identify one agency who can be the overall resource/ summary of recommendations under value chain sector support agency which can be contracted in. analysis chapter.
Other stakeholders feedback
How livelihood survey findings will be shared with Broad implementation plan will be shared under rural community ? value chain analysis chapter.
Promotion of activities such as incense stick making, Study mentions five value chain activities and ornamental fish, aloe vera, medicinal and aromatic other potential activities that can be promoted plants under the project. New activities could also be promoted after doing a proper feasibility study for very new activity.
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Annexure: presentation by PD, NERLP
North East Rural Livelihood Project (NERLP) Ministry of DoNER, Govt. of India Guwahati - 22
Topic Livelihood Study of NERLP Stakeholders Workshop Conference Hall No. 2, New Secreatariate Agartala 10.30 am, 11th february, 2011
By
Alok K Srivastava, IAS, Project Director, NERLP
1
• Interventions by Govt. in RD found necessary due to alarming number of poor in eraly 50’s. • India was no longer a police state, it became a welfare state • Country, also in addition ravaged by internal conflicts, demands relating to lingustic reorganisation of states, droughts and farmers apart from the wars of 1948, 1962 & 1965 • By the time 1971 war was faced, we already had sufficiently in food grains if not food security.
• 2
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• Varieties of poverty related schemes tried since 50’s – FFW, IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP, SGSY, PMGSY, MGNREGA, State Govt. Social Housing & Poverty Alleviation Schemes
• Focus – individual oriented, at the same time, employment was aimed to be generated, ultimately resulting into creation of durable community assets, such as, Panchayat Ghar, Schools, Community Halls, Marriage Halls were also created.
• Perhaps, we had too much of doles going to individual beneficiaries. Many a time selection of beneficiaries was problematic. As a result, needy won’t get what was due to them and some of selected ones would very quickly reply loan amount by duly pocketing subsidy. • Also, assets would be quickly disposed off in some cases. It was the case with some non-regular social welfare oriented schemes. • A lot of thought has, therefore, gone into review of ongoing schemes aiming at a frontal attack on poverty. Evaluation by Govt., Non-Govt. and international Agencies and what not ? • Choices is between Development and Populism ?
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• In view of success of SHG experiment in welfare oriented sphere, it has been found desirable to follow a group oriented approach. Apart from the number aspect, the quality, proper use of resources, capacity building and empowerment of the needy has been emphasized. • NERCORMP experiment began with the help of IFAD and Ministry of DoNER w.e.f. 2000 in 6 districts of 3 states of North East • Implementation in W. Garo & W. Khasi Hills of Meghalaya; K. Anglong & N.C. Hills of Assam and Senapati & Ukhrul of Manipur. Though progress was slow, the scheme could reach those areas rarely or half heartedly covered by the Govt. functionaries. 1
• Perceptible improvements noticed in environment protection, road and transport link to the villages, basic health care, improving primary education, cultivation and processing of local herbs and medicinal plants, improving the output of traditional crops etc. • Livelihood promotion projects taken up with assistance of World Bank in AP, TN, MP, Rajasthan, U.P., Orissa, Chattisgarh, Bihar during 2000 to 2008. Some of the states have gone for 2nd round of financing (parallel with 2nd dose in IRDP) • Close on the heels of success of such projects, GoI decided to launch Livelihood Promotion Project in the whole of NER. Consultation with all 8 states, survey and assessment started w.e.f. 2007. 6
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• NERLP is the first multi state project unlike the state specific ones launched /undergoing elsewhere.
• In view of sheer magnitude, linguistic differences, varying terrain, international boundaries and lack of exposure to EAP, it was decided to phase out the process. Also the expression REGION was replaced by RURAL
• North East Livelihood Promotion Society was constituted and registered at Guwahati in May, 2009. Temp. Office set up on 21st December, 2009. Proper building occupied w.e.f. June, 2010
7
• NERLP Phase-I therefore started with World Bank Assistance by the Ministry of DoNER. Spread over 5 years, it will cover the states of Mizoram, Nagaland, Sikkim & Tripura. The Phase-II after 5 years from now will cover the states of Assam, Meghalaya & Manipur.
• A total of 3 lakh household proposed to be covered in 58 blocks of 9 districts of 4 states. Each state will have 2 districts except Sikkim wherein 15 panchayat wards have been also included from the 3rd district.
• Tripura will account for about 50% of the households due to huge density of population and correspondingly large number of BPL people. 8
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• Sample Livelihood activities – initial feedback of states, field visits by NERLP team but final selection only after recommendation of MART team • Institutional arrangement – RPMU at Guwahati, DPMU in all 8 districts and PFT at Block level (MP, Bihar pattern) • State coordinator appointed by project to help and coordinate from time to time, however, fund flow will not be through him. It will be from World Bank to DEA/DoNER to RPMU to DPMU to PFT and finally to SHGs and other community institutions (CDG, YG, PO etc.) • Baseline survey: All 4 states, 120 village ( Feb-May) 20 villages in P. Dist (10 HH)
10 villages in N.P/ Dist ( 5 HH) 9
• Economic and Financial Analysis and costing exercises already taken up
• 5 manuals – PIP completed, SPIP ( 2 draft), COM (3rd draft), FMM ( Final draft on) & HRM ( 3 drafts).
• 3 studies – Livelihood, Social Assessment (including Tribal Development Framework, RR etc.), Environ. Assessment in final stage.
• 3 World Bank Missions – Guwahati (March, 2010), Guwahati (May, 2010), Agartala (July, 2010), Pre-Apprisal Mission expected in Sikkim in March, 2011
• Field visits to 4 project sattes including Tripura ( a numbervillages in 5 blocks of west Tripura & 4 blocks of North Tripura covered). Exposure tours to 3 successful states – AP, MP & Bihar 10
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• Interaction also held with 52 numbers of SHGs, both promising and vibrant ones during field visits in May & July, 2010 • West Tripura District: Blocks covered Boxanagar, Bishalgarh, Dukli, Hezamara, Jirania, Mandwai • North Tripura District: Blocks covered: Kumarghat, Gaurnagar, Panisagar, Pecharthal
• A number of other villages covered by the 3 study teams viz. Livelihood (6+7), Social Assessmemnt & Environment Assessment
11
• Villages studied by Livelihood team • West District – Gajaria, Kalubari, Rabindranagar, Bejimana, Manaipathan, Ishan Chandra Nagar ( 2 blocks) • North District- Bilthai, Purba Tilthai, Unokoti, Sonamiri, Sukantnagar, Kaulikura and Deoracherra ( 4 Blocks)
• In sum and substance, after these efforts, we will have a good idea of the potential of the villagers of two districts. Stage in now set for village entry subsequent to final nod from Worls Bank.
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www.dawnerlp.in
13
Thank You
14
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MART Presentation
Livelihood Based Agri-Business and Market Studies for North East Rural Livelihood Project
Tripura Findings February 2011
Objectives of stakeholder workshop
Recap of study methodology and process adopted Share findings on livelihoods status Facilitate discussion on • P roposed implementation • Envisaged roles and responsibilities of project partners
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Livelihood based Agri Business and Market Study in Tripura
North East Rural Livelihood Project
The Ministry for Development of North Eastern Region (DONER), Government of India proposes North East Rural Livelihood Project (NERLP) to address the issues of rural poverty and creation of sustainable livelihood for rural poor particularly for women. Project states include Tripura, Nagaland, Sikkim and Mizoram MART, a leading Livelihoods and Marketing Consultancy signed agreement on the 4th of August 2010
Livelihood based Agri-Business and Market study Assess economic opportunities in farm, off-farm and non-farm sectors Understand existing infrastructure, resources , support services, major occupations, production systems, technology, policy environment and potential for growth Conduct market assessment and value chain analysis for potential livelihood activities Suggest viable income enhancement strategies for potential farm, off-farm and non-farm sectors Suggest business plans for appropriate livelihood interventions for potential activities
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Key Stakeholders consulted
Key Informants Place
Villagers (Farmers, SHG Members, 13 villages in 2 districts Youth, Church etc.)
Secretariat & Directorate Officials Agartala & Dist.HQ
Govt. Line Dept. Officials Dist. HQ
Support Institutions ( NABARD , NIRD, Agartala and Guwahati RGVN, etc.)
World Bank, NERLP Delhi and Guwahati
Agartala and District HQ, Processors, Traders, Transporters etc.
)
Approach of the study
Activities Key Steps Outputs
Review of project literature and Develop better understanding of the reports Step 1 study and project states Study livelihoods initiatives/project Pre study Draft study design and plan such as DONER, NERCRMP in north preparation east states. Secondary reports and website Draft study design and plan
State wise meeting with state Develop better understanding nodal officer and stakeholders from Step 2 keeping project objectives in mind line departments and resource Initiation List out key stakeholders for meeting agencies Meeting at during field visit To understand NERLP objectives state level Feedback on constraints and and process, and key stakeholders opportunities in the state in the region Finalize approach and methodology Generate list of livelihood activities Finalize study villages based on Share study approach and availability of key products/services methodology Finalize field visit plan Share outline of draft report
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State wise data information State wise initiation report. It contains: collection, compilation and analysis Step 3 Existing livelihood profile and issues of initiation meetings Initiation Report SWOT analysis of the region Overall approach and methodology List of villages to be visited List of key stakeholders shortlisted Field visit plan Discussion guides 10-12 potential list of products for value chain analysis
Interaction with key stakeholders Shortlist 4-5 products/commodities/ from line departments such as Step 4 services per state for undertaking agriculture, horticulture, animal Fieldwork -1 value chain analysis husbandry, resource agencies, and (Interactions List of stakeholders/VC players and key market players with key products/commodities/ services Analysis of secondary reports and stakeholders) villages finalized for Field Work-2 market analysis Finalized discussion guides for Fieldwork-1
Finalize study design Fieldwork involves Finalize field visit plans Step 5 Livelihood survey in villages and Finalize field teams Fieldwork -2 market and meeting with enablers Undertake field visit (Interactions in Value chain analysis of 4-5 Finalize list of stakeholders to be villages and products/commodities/services and met markets) meeting with value chain players
Data compilation and analysis Draft report as per objectives listed Prepare draft strategies Step 6 out earlier Draft Report
Share draft report though power Agreed feedback of stakeholders on point presentation to World Bank, Step 7 the draft report DoNER staff and other stakeholders Stakeholders Content for final report finalized as suggested by the project consultation Stakeholders consultation workshop workshop to report share Draft Report
Additional data analysis and Final report as per study objectives information collection from Step 8 defined earlier secondary sources Final Report Feedback incorporated from stakeholders consultation workshop report
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3M Concept
Matching Supply & Demand Supply Possibilities Demand Pattern Income Opportunity Project Support
Survey in Market survey Identification Villages • Own Village Handholding of Viable services . Resources –Shop Activities Training . Skills –Trader Exposures . Technology –Vendor Infrastructure . Finance • Haat Bazar Sustainable . Infrastructure • Town Market . Support Activities Services
Study villages
District Block Villages Gajaria, Kalubari, Boxanagar, Rabindranagar, Bejimana, Bishalgarh, West Manaipathan, Ishan Chandra Kathalia Nagar ,
Gaurnagar, Panisagar Bilthai, Purba Tilthai, Sangsangyu , Unokoti, Sonamiri, Bilhalgarh North Sukantnagar, Kaulikura and Deoracherra
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Livelihood based Agri Business and Market Study in Tripura
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Livelihood based Agri Business and Market Study in Tripura
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Agriculture – Major Crops
Major crops Availability in Percentage of households percentage of villages involved Paddy 100 31
Vegetables (except potato) 90 24
Potato 90 15
Areca-nut 60 20
Pulses 50 1
Pineapple 50 8
Rubber plantation 40 2
Fruits (except pineapple) 30 5
• Agriculture trends • 68% of rural households possess agriculture land and 32% households are landless. • Average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to 0.6 ha in 1995-96 • 95% of total operational landholdings in the state are below 2 hectare and these account for 75% of operated area • Factors affecting agriculture • Entrepreneurial attitude of farmer, • Size of land holding, • Availability of irrigation facility, • Adoption of package of practices
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Input Sourcing
• Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools from nearby towns. Seeds and fertilizers are available from government department
• Farmers don’t stock inputs and purchase them on as-and- when-required basis, mostly in cash.
• Short supplies of chemical fertilizers coupled with individual purchases of small quantities make farmers to spend two to three times of the actual price.
• Retailers offer credit but charges higher rates who also offer advice.
• Farmers get duped on brands due to low literacy levels.
Agriculture practices and technology used
• Farmers use home grown seeds but use of certified and hybrid seed has picked in last few years. • Use of power tiller saves labour cost and time
(Rs 100 – Rs 150 per hour) • Technical training make farmers educated and aware but adoption of practices is low and different.
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• Money lenders are the traditional source of financer to rural community and they charge 5-10% per month.
• Agencies such as RGVN, Bandhan and Basix operate
– provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation activities. – effective rate of interest to farmers comes to 30% per annum – Villagers repay the loan on weekly basis. • SGSY schemes offers bank loan and subsidy. SHG needs of proper handholding and marketing support
Market access Major crops Volume consumed in Marketable surplus
village (%) quantity per village (%) Paddy 74 26 Arecanut 44 56
Pulses 39 61 Potato 20 80 Fruits 18 82 Vegetables 4 96
Tea plantation 3 97 Pineapple 1 99
Rubber plantation 0 100
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Market access
Major crops Selling system (% of produce) Sale price Within Traders Haat (Rs per village quintal)
Paddy 4 80 15 800-1000 Arecanut - 20 80 6000-9000
Pulses - 100 - 3000-5000 Potato 5 95 - 700-1300
Fruits - 100 - 2000-3000 Vegetables 3 82 15 1000-3000 Pineapple 2 98 - 3-5 per piece Rubber - 100 - 14000-16000
plantation
Agriculture practices by Farmers Farmer practices Farmer 1 Farmer 2 Farmer 3
Location West District West District North District
Household members 8 6 4
Total landholding 0.6 acre 2.8 acre 0.6 acre
Land ownership Leased Self Self
Land used for potato cultivation 0.4 acre 0.4 acre 0.4 acre
Engagement in activity November –January November –January November –January
Daily involvement 2 hours 2 hours 2 hours
Sourcing of seed Private Agriculture office Agriculture office Use of organic manure No Yes Yes
Application of chemical fertilizers Yes Yes Yes
Inputs cost (Rs) 18190 14970 21750
Production (Kg) 3200 2400 3500
Selling to Sub division wholesaler Sub division wholesaler Consumer (Weekly haat) Price received (Rs) 12 8 10
Net income 19490 4230 13250 MART, Noida 141 Profitability 103% 28% 61%
Livelihood based Agri Business and Market Study in Tripura
Livestock based livelihoods
Livestock Availability in Percentage of percentage of households villages involved Fishery 100 12 Poultry 100 22 Cow rearing 90 18 Goatery 70 25 Piggery 30 3
Market access
Livestock Volume consumed in Marketable surplus in village (%) village (%) Cow milk 85 15 Poultry 19 81 Fish 12 88 Goat 10 90 Pig 5 95
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Market access
Livestock Selling system (% of produce) Sale price Within village Trader Haat (Rs per kg) Fish - 96 4 70-160
Pig 4 72 24 125-135 Goat 10 70 20 180-220
Poultry 1 95 4 110-150
Cow milk 100 - - 20-28 per litre
Production and marketing practices
Fish culture practices Farmer 1 Farmer 2 Farmer 3
Location West District North District North District
Household members 8 6 4
Total landholding 2 acre - 3.2 acre
Land ownership Self SHG Self
Land used for fish culture 0.4 acre 2.6 acre 0.4 acre
Engagement in activity November –January November –January November –January
Sourcing of seed Govt./Private Own Private
Production (Kg) 250 3545 746
Selling to Wholesaler Wholesaler Wholesaler
Price received (Rs) 70 105 85
Inputs cost (Rs) 18190 14970 21750
Net income (Rs) 19490 4230 13250
Profitability 233% 190% 211%
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Non-farm based livelihoods Non-farm activities Availability in Percentage of Place of work Traditional/ acquired percentage of villages households involved skill Stitching 100 27 Within Village Acquired
Laborer 100 19 Village/Outside Acquired
Electrician 100 1.2 Within Village Acquired
Insurance agent 100 2.7 Village/Outside Acquired
Driver 100 5 Within Village Acquired Government service 90 6.4 Outside village Acquired School teacher 90 1.3 Outside village Acquired
Incense stick making 70 16 Within Village Traditional
Army 60 0.6 Outside village Acquired
Private service 60 3.0 Outside village Acquired
Hotel jobs 60 0.5 Outside village Acquired
Knitting 40 8 Within Village Traditional
Police 40 0.4 Outside Acquired
Plumber 40 0.1 Within Village Acquired Weaving 30 8 Within Village Traditional
Embroidery 30 5 Within Village Acquired
Carpenter 20 0.5 Village/Outside Traditional
Food processing 10 0.1 Within Village Acquired
Key Livelihoods under NERLP
• Fish culture • Potato cultivation • Pulse cultivation • Vegetable cultivation
• Pineapple cultivation • Piggery • Arecanut • Goatary • Rubber plantation • Cow rearing • Handicraft • Vocational skill based
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Potato VC
Consumers Consumers Consumers Consumers (Local market)
14-15/kg Retailers Retailers (Agartala) Retailers Retailers (Agartala) (Subdivisions) (Agartala/Subdivision
Wholesalers Wholesaler Wholesaler Rs 12-13/kg (Agartala) (Agartala) Markets
Wholesale markets Villager level Kolkata traders
Farmers Farmers Rs 7-10/kg* (Outside state) (Within state)
Input Suppliers (Within state) Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
Vegetable VC
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Fish VC
Consumers Consumers Consumers Consumers (Local market)
14-15/kg Retailers Retailers (Agartala) Retailers Retailers (Agartala) (Subdivisions) (Agartala/Subdivision
Wholesalers Wholesaler Wholesaler Rs 12-13/kg (Agartala) (Agartala) Markets
Wholesale markets Villager level Kolkata traders
Farmers Farmers Rs 7-10/kg* (Outside state) (Within state)
Input Suppliers (Within state)
Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
Pulse VC
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Pineapple VC
Consumers Consumers Consumers Consumers (Local market)
14-15/kg Retailers Retailers (Agartala) Retailers Retailers (Agartala) (Subdivisions) (Agartala/Subdivision
Wholesalers Wholesaler Wholesaler Rs 12-13/kg (Agartala) (Agartala) Markets
Wholesale markets Villager level Kolkata traders
Farmers Farmers Rs 7-10/kg* (Outside state) (Within state)
Input Suppliers (Within state) Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.
Key VC constraints • Seeds from the government department are not available on time which forces farmers to procure them from open market. • Availability of fertilizers is low when the demand is high as a result prices group by 50-200% in peak demand times. • Farmers are not educated so they find problem in reading the names of pesticides so they go by the advice of retailers who sometime offer duplicate products
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• Farmers are not aware of new improved techniques, such as staggering method that improve productivity significantly • Availability of irrigation is an issue, in some villages pump sets are not available and farmers have to hire them from other villagers @ Rs 80 per hour • Lack of adequate extension services from govt. department
• Due to lack of sufficient cold storage facility in the state, farmers sell the produce immediately after the harvest at throw away prices. • Availability of works under NREGA at Rs 100 per day has pushed labour costs to as high as Rs 150 per day. • Bank loans not available to poor; MFIs provide loan at higher interest but their loan products don’t match the farmers expectations.
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• Farmers sell individually to the retailer / wholesaler resulting in higher overhead marketing costs • The farmers have low affinity for collective action for sourcing of inputs and salling resulting in higher operating costs. • Blockage of roads and civil unrest may lead to increase in input costs and market failure making cultivation unviable.
Broad Strategies
• Focus on productivity enhancement • Focus on building capacity on markets and marketing and entrepreneurial skills and direct marketing of produce • Decentralize production and collective procurement and marketing of produce • Regular training on better PoPs/technologies • Promote village level cadres for handholding support
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Implementation Plan • phase I – Preparedness at the community level – cluster selection – social mobilization and institution building – preparation of business plan – capacity building • Phase-II – Launching of the – backward linkages – production – market access and convergence • Phase III- Up-scaling – monitoring and evaluation – Strengthening Institution – legal aspects
Thanks and discussions
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Annexure: List of participants
S. Name Designation Agency No.
1 A . N. Dighe Manager NABARD
2 A . V. Chand Joint Director Planning (statistics)
3 Alok K Srivastava, IAS Project Director, NERLP Min of DoNER
4 Amit Kr. Kar Project Manager NERLP
5 Apan Kr. Sarkar Joint Director Fishery
6 Bhaskar Das Gupta Dy Director Panchayat Panchayat Dept
7 Braja Madhar Bhattacharya Consultant MART
8 Brijesh Pandey DM, West District Rural Development
9 C K. Jamatia ADM & PD, West Tripura Rural Development
10 D. Koloi Asst. Project Director DRDA (west)
11 Dipayan Ghosh State Coordinator NERLP
12 Dr. Adarsh Singh OSD RD Department
13 Jayeeta Chakraborty Asst. Project Director (west) DRDA
14 Kalyan Roy Manager (livestock) TCMPU Ltd
15 Konika Roy RD officer, Kumarghat DRDA
16 Kumar Alok, IAS Comm. & Secy Rural Development
17 Puja Thapa Rural Development
18 Rajendra Kr. Noatia PD, DRDA, North Tripura Rural Development
19 Sanjay Kr. Gupta Partner MART
20 Subhasis Das BDO, Boxanagar Rural Development
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