Livelihood Based Agri Business and Market Studies for North East Rural Livelihood Project
Final report, Mizoram April 2011
Submitted by
MART A-32, 1st Floor, Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995 Website: www.martrural.com
Livelihood based Agri Business and Market Study in Mizoram
Acknowledgement
We take this opportunity to extend our thanks to Ministry of Development of North Eastern Region (MDoNER) for giving us this opportunity to undertake this important livelihood study under North East Rural Livelihood Project (NERLP).
We sincerely thank Mr. Alok Kumar Shrivastava, IAS, Project Director, NERLP and his entire team at Guwahati for their constant guidance and unconditional support during the entire study period. A number of meetings with him and his team 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 the stakeholders’ workshops in states. NERLP feedback on draft report has helped us improve it suitably to make it a useful project document.
We thank Mr. Biswajit Sen, Senior Rural Development Specialist and Mr. Nathan M. Belete, Senior Rural Development Economist at World Bank for their constant support in ensuring completion of the study particularly in finalizing the report templates and selecting 5 economic activities for value chain analysis in the state. We would also like to thank Mr. Varun Singh, Social Development Specialist at World Bank and Dr. Amarendra Singh for their valuable feedback on the study.
We are indebted to Shri. Lalremthanga, MCS, Director, RD, Government of Mizoram and Ms. Ramdinliani, MCS, RD, Government of Mizoram for their support and coordination in making field work meaningful and organizing very fruitful stakeholder consultations.
We sincerely thank all the stakeholders who spared their valuable time to provide us important information and relevant documents. We particularly thank all the stakeholders present in the two highly informative and participatory workshops conducted at Aizawl on 27th August 2010 and 11th February 2011 for their invaluable contributions and feedback in guiding and finalizing the study.
We would like to thank all the state level officials and Block Development Officers of Lunglei, Lungsen, Thingsulthliah, Phullen blocks who not only facilitated our field visits but also earmarked competent personnel to support us in the field work. Our thanks are due to Vanapa Society who provided support in carrying out field work during the course of the study.
Last but not the least our heartfelt appreciation to villagers, SHG members, entrepreneurs, market players, wholesalers and retailers, processing units at Aizawl, Lunglei and other markets who spared their valuable time and shared invaluable information to provide credibility to the research and developing implementable strategies.
MART Team
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Contents
Abbreviation ...... 3 Executive Summary ...... 4 Chapter 1: Background and Methodology ...... 8 1.1. Background ...... 8 1.2. Objectives of the study ...... 8 1.3. Approach of the study ...... 9 1.4. Limitations of the study ...... 11 Chapter 2: State Profile and Livelihood Issues ...... 12 2.1 Mizoram at a glance ...... 12 2.2 Aizawl District ...... 14 2.3 Lunglei District ...... 15 2.4 Livelihood Issues ...... 16 Chapter 3: Livelihood Profile ...... 21 3.1 Demographic Profile ...... 21 3.2 Population Profile ...... 21 3.3 Land Holding Pattern ...... 22 3.4 Land based livelihoods ...... 23 3.5 Livestock based livelihoods ...... 30 3.6 Service based livelihoods ...... 32 3.7 Non Timber Forest Produce (NTFP) based livelihood ...... 33 3.8 Existing amenities and infrastructure in villages...... 37 3.9 Skill Status ...... 39 3.10 Credit Scenario ...... 40 3.11 Village Level Markets ...... 40 3.12 Marketing Infrastructure ...... 40 3.13 SHG information ...... 42 Chapter 4: Value Chain Analysis ...... 44 4.1 Selection of activities ...... 44 4.2 Summary of suggested interventions for the shortlisted activities ...... 45 4.3 Turmeric (Curcuma longa) ...... 49 4.4 Mandarin Orange (Citrus reticulata) ...... 58 4.5 Piggery ...... 68 4.6 Poultry ...... 78 4.7 Stick making (used for making incensed sticks) ...... 90 Annex – 1: List of persons met ...... 96 Annex – 2: List of Secondary sources / References ...... 99 Annex – 3: List of wild life trade prohibited under the Wild Life (Protection) Act, 1972 .... 100 Annex – 4: Stakeholders’ Consultation Workshop ...... 101
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Abbreviation
APMC Agriculture Produce Market Committee BDA Bamboo Development Agency MDoNER Ministry of Development for North Eastern Region DRDA District Rural Development Agency FGD Focus Group Discussion GNP Gross National Product GoM Government of Mizoram Kg Kilogram MAMCO Mizoram Agricultural Marketing Corporation Ltd. MART A leading livelihood and marketing consultancy agency MFI Micro Finance Institution MIFCO Mizoram Food and Allied Corporation 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 PIGFED Mizoram Pig Producer Co operative Federation Ltd. RBI Reserve Bank of India ROI Return on Investment Rs Rupees SGSY Swarnjayanti Gram Swarozgar Yojana SHG Self Help Group Tin Local measurement unit for area and production in Mizoram VC Village Council
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Executive Summary
The North East Rural Livelihood Project (NERLP) of the Ministry of Development of North Eastern Region (MDoNER), 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 Mizoram, Nagaland, Sikkim and Tripura. MART, a leading livelihoods and marketing consultancy, was selected to conduct the study in all four states. MART signed a MoU with MDoNER and closely coordinated with Project Director, NERLP based at Guwahati for finalizing study design, planning fieldwork and information to key state stakeholders for smooth conduct of the fieldwork. The primary objective of the study was to assess economic opportunities in both farm and non-farm activities in the project area. MART used 3M approach for the study that looks at the overall livelihood ecosystem incorporating understanding of villagers, market players and enablers to analyze the livelihood scenario in the state. 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. Under the agreed methodology MART covered 10 villages with the support of RDD, Mizoram and conducted FGDs and individual interviews with villagers, state and district officials. Market study involved interviews with traders, transporters, and Government and private processing units. According to Economic Survey, Mizoram 2008-09, about 37,384 households in the rural areas are estimated to be poverty household in 2004 (Below Poverty Line household). Agriculture occupies a very important place in the economy of Mizoram. As per Economic Classification of Workers, 2001 Census, 60.6 per cent of the total workers are engaged in agricultural activities mostly by practicing Jhum (shifting) cultivation. Meanwhile, the share of agriculture alone in Gross State Domestic Product (NSDP) is projected to be hardly 7 percent at current price during 2008-09. According to Agricultural Census 2005-06 there was an estimated 97223 nos. of operational holdings and the area operated was estimated at 1,16,645 hectares as against 93,298 hectares in 1990- 91 agricultural census. Marginal and small holding together alone constituted 83.5 per cent of the total holdings during 2005-06. In spite of the fact that rice being the staple food and the most important crop occupying the largest share in terms of area and production, Mizoram is still not self-sufficient in rice production. The total paddy production till today could hardly meet the total consumption requirement of rice for a year. Moreover, agricultural production consist mainly of kharif crops, the contribution of rabi crops to the total production is almost negligible, it accounts for only about 8 per cent of the total production 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, booming service sectors offering employment opportunities, more private sector participation and impetus to state economy by opening business corridors with Bangladesh. Mizoram shares long and porous International Borders with Myanmar and Bangladesh. People of similar ethnicity inhabiting the Border areas on both sides of the International divide continue to sustain their requirements through conducting mutually beneficial trade, albeit informal. A
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sustainable economic upliftment of the people living along the borders, which are in most cases, located in far flung remote areas, would requires putting in place an organized system of trade, such as Border Haat (Common Village Market), border trade and preferably normal trade in due course of time. The hallmark of rural community is their engagement in multiple livelihood activities to sustain family needs. Along with subsistence agriculture with an exception of few cash crops namely turmeric, ginger etc. rural community earns regular income from selling various NTFPs to the local markets. Selling of processed food items including juice concentrates is a common sight in the haats. Households grow a range of crops, predominantly paddy and horticulture crops. Agriculture is rain fed and the there exists one cultivation season wherein farmers engage in mixed farming. 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. 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. The state of Mizoram 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. Apart from Piggery, back yard poultry which are the predominant activities done by villagers, fishery, sericulture are also being practiced in certain areas of the state. 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 by-products. The livestock sector is characterized by overall low livestock productivity, traditional rearing practices, high inputs costs (prohibitive in the case of dairy), 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 labour, stitching, electrician, insurance agent, hotel, army, embroidery, knitting, school teacher, and carpenter etc. 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 from these activities due to limited local demand. Imparting skills for automobile repair, mobile repair, cobblers that has local demand can offer livelihood to rural youths.
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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. There are number of activities that project can promote among the poor that includes ginger cultivation, passion fruit cultivation, birds eye chilli cultivation, orange cultivation, pig rearing, poultry rearing. However, five activities namely mandarin orange cultivation, turmeric cultivation, pig rearing, poultry (both broiler and layer) rearing, stick making (for the purpose of making incensed sticks) 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 analysis has led to identification of specific opportunities for poor for which intervention strategies and economics have been prepared. The internal supply for above-mentioned 5 potential products in the state is less compared to their demand and therefore, these can be promoted to bridge the gap on the one hand and provide sustained incomes to the community on the other. 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 either outside the state or from well established distant towns within the state, poor quality of seeds and inputs, use of traditional practices and lack of extension services, low productivity levels, and low affinity among farmers for collective action on input sourcing and marketing of outputs. The activities to be performed by the project to successfully initiate livelihood interventions involves selection of right beneficiaries, proper social mobilization and institution building of poor, share and customize activity business plan with the community, organize skill enhancement and business knowledge trainings, organize market exposure visits, establish backward and forward linkages with resource agencies, facilitate market linkages, and strengthen existing SHGs. Generally, SHG formation has been done by the Block Development Office, RDD, GoM. Most of the groups are claim to associated with one or other IGA predominantly either piggery or petty shop (variety stores). However, the scale of activity is mostly backyard and not per se an enterprise that provides regular income. SHGs lack proper documentation and work with a limited outlook. Handholding SHGs to overcome a range of issues may be a good investment by the project particularly in availing banking facilities. While many SHGs have not been able to get a loan, erratic loan repayment status came out as a single most important bottleneck in establishing their creditworthiness. Right selection of activities for the SHGs is important. A bottom up approach allowing SHGs to select activities after careful consideration may be integrated. Strengthening SHGs will be an important task for the project wherein Capacity Building on various issues including micro finance, enterprise promotion can be thoughtfully integrated in the project mandate. Resource NGOs can be tapped for building the capacities of SHGs so that they are able to initiate manage and sustain the interventions. Project need to put in place a cadre of marketing professionals at head quarter office at Guwahati, state level and at the district level. The roles and responsibilities at each level be need to be defined clearly; head office and state level staff is responsible for developing marketing plan, forging convergence and partnership, linkages with wholesalers, small and medium level enterprises and corporate players. District level staff is responsible for executing the plan at village level. There would also be the need to develop village level marketing para-professionals to handhold community on day- to-day basis. The project should build the capacity of staff at every level through capacity building and
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exposure visits to successful initiatives in other parts of India. Project would also be required to hire services of specialist marketing agency to provide guidance and handholding support to marketing its staff. Following table captures the investment required to undertake suggested interventions for the 5 economic activities
Produce / Intervention Size of activity suggested Key Resource / Sector Product Suggested Support Agency Unit of activity Funds required (Rs.)
Turmeric Turmeric cultivation using 1 ha 34380 Horticulture department and improved practices and MAMCO Collective marketing for better returns in both the districts
Mandarin Cultivation using better 1 acre 267020 Horticulture department and Orange practices and collective MIFCO marketing for better returns in both the districts
Piggery Pig rearing for both piglet 6 fatteners and 2 140553 AH & Vety. Department (piglets, pork) and pork sales in both the sows districts
Poultry Poultry (Meat) in both the 250 chicks for 296363 AH & Vety. Department (Broiler-Meat districts broiler and Layer- Poultry 250 chicks for 317613 AH & Vety. Department Eggs) (Egg) in both the districts layer
Sticks (used Stick (batti) making in both 27 quintals 19380 Bamboo Development Agency for making the districts incensed sticks)
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Chapter 1: Background and Methodology
1.1. Background
The North East Rural Livelihood Project (NERLP) of the Ministry of 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 Mizoram, Nagaland, Sikkim and Tripura.
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: 1.1.1 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.
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Identify critical investment needs in the value chain that can accrue better income to the poor. 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
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 at Aizawl List of key stakeholders finalised for Meeting with DRDA and line Step 2 meeting department officers Initiation meeting Feedback on livelihood constraints and Shared study approach and at state and opportunities in the state methodology district level Finalized 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 five 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. piggery, poultry, Director, NERLP at New Delhi to share Step 4 mandarin orange, turmeric and stick observations and experience of Initiation Report making (used for making incensed stick fieldwork-1 making) for value chain analysis Discussion to finalise products for Submitted initiation report containing taking up value chain analysis livelihood profile and issues, overall 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 interviewed producers/farmers (Interactions in analysis of 5 products by meeting value Met market players in wholesale and villages and chain players retail markets at Aizawl and project markets) districts Met line-department officials
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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 through power point Agreed feedback of stakeholders on the presentation to World Bank, MDoNER 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 submitted 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 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.
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 level 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.
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Livelihood based Agri Business and Market Study in Mizoram
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. Ten villages namely Sesawng, Tlungvel, Thingsulthliah (Thingsulthliah block), Phullen, Thanglailung (Phullen block) in Aizawl district and Lungsen, Rangte, Phairuangkai (Lungsen block), Mualthuam ‘N’, Haulawng (Lunglei block), Lunglei district 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. Value chain players like producers/collectors, traders, processors, and enablers including Government Institutions at village, block, district, and state level were interviewed. List of stakeholders met is annexed.
1.4. Limitations of the study
Focus Group Discussions and interviews were conducted to gather information from villagers and best practitioners. Hence, primary data collected may not exactly match with data available with government department. Market related data has been collected from the traders in the village and town markets by conducting interviews. In view of frequent price fluctuations, market information presented in the report will have to be updated. State / district level data available from various secondary sources is inconsistent. Self-judgement guided by primary analysis was used to use the date. Difficult geographical terrain compounded by heavy rains during the study period led to heavy land sliding blocking all entry points to the remote villages. Hence, understanding of remote villages was gathered through discussion with secondary stakeholders.
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Chapter 2: State Profile and Livelihood Issues
2.1 Mizoram at a glance
Mizoram is a mountainous region, which became the 23rd state of the Indian Union in February 1987. It is spread over a geographical area of 21,087 sq. km. Sandwiched between Myanmar in the east and the south and Bangladesh in the west, Mizoram occupies an area of great strategic importance in the north-eastern corner of India.
Geographical Location Longitude 92°.15’E to 93°29’E Latitude 21°.58’ N to 24°.35’ N
Length North to South 277 kms East to West 121 kms
International Borders With Myanmar 404 kms With Bangladesh 318 kms
Inter State Borders With Assam 123 kms With Tripura 66 kms With Manipur 95 kms
Administrative Set Up No. of District 8 nos. No. of Autonomous District Council 3 nos. No. of Sub Division 23 nos. No. of R.D. Block 26 nos. No. of Villages (2001 Census) Inhabited 732 nos. Uninhabited 108 nos. Source: Economic Survey Mizoram: 2008-09
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Population (As per Census 2001)
S. N. Particular Unit 1. Total Population Persons Nos. 8,88,573 Male Nos. 4,59,109 Female Nos. 4,29,464 Rural Nos. 4,44,567 Urban Nos. 4,41,006 2. Decadal Population Growth (1991 —2001) Absolute Nos. 1,98,817
Percentage (%) % 28.8% 3. Population Density Per Sq. Km 42 4. No. of females per 1000 males Nos. 935 5. 0 - 6 Population Persons Nos. 1,43,734 Males Nos. 73,176 Females Nos. 70,558 6. Literacy Persons Nos. 6,61,445 Males Nos. 3,50,105
Females Nos. 3,11,340 Rate % 88.8 7. Total Workers Main workers Nos. 3,62,450
Marginal workers Nos. 1,04,709 Source: Economic Survey Mizoram: 2008-09
Agriculture is the mainstay of the people of Mizoram. More than 70% of its population is engaged in agriculture. The age- old practice of Jhum cultivation is followed by a large number of people living in rural areas. The climatic condition in the state with well distributed rainfall of 1900mm to 3000mm spread over eight to ten months in the year and location in tropic and temperate zone with various soil types have contributed to the occurrence of a wide spectrum of rich and varied flora and fauna. These natural features and resources also offer opportunities for growing a variety of horticultural crops.
Use of fertilizer and pesticides in agriculture and horticulture is almost non-existent in Mizoram. As such, all agri-horticulture produce of Mizoram is organic, and therefore of very high-value in national and international markets. Out of the total cultivable area, about 6.31 lakh hectares, area with gentle to moderate slopes, is suitable for horticultural activities. Out of this, only 46,000 hectares or 7.29% was
MART, Noida 13 Livelihood based Agri Business and Market Study in Mizoram under horticulture crops during 1998 to 1999. Therefore, the scope and potential for expanding the activities of horticulture is enormous. Source: http://investinmizoram.nic.in/foi/ahs.htm
Land Tenure System in Mizoram
Geography Cultivation Legal Position Transferability Pattern of land Pattern of land out of ownership community Area 20.08 Both shifting Lushai Hills Prohibited by All land belongs to state. mn hectares, and settled District, Law Three states of pattas exists: Terrain Hilly (Acquisition of Temporary pass, Periodic Chief's Rights) Act Patta, Land settlement 1954 Certificate
Land Use Statistics of Mizoram Figs in Thousand hectares S.N. Particulars 2008-09 Mizoram Aizawl Lunglei I. Geographical Area 2108.7 357.63 453.8 II. Reporting area for land utilization 2108.7 357.63 453.8 1 Forests 793.85 107.28 196.75 2 Not available for cultivation 133.0 22.56 28.63 2 a Land put to non-agricultural use 124 21.03 26.69 2 b Barren and uncultivable land 9.0 1.52 1.93 3 Other cultivated land excluding fallow land 827.07 168.34 162.91 3 a Permanent pastures and other grazing land 5.25 1.02 1.53 3 b Land under miscellaneous tree crops and groves not 794.82 162.61 155.95 included in net sown area 3 c Cultural waste 27.0 4.71 6.19 4 Fallow land 230.9 39.16 49.73 4 a Fallow land other than current fallows 170.85 28.97 36.79 4 b Current fallows 60.89 10.19 12.94 5 Net sown area 123.83 20.26 15.75 6 Total crop area 126.71 20.93 16.36 7 Area grown more than once 2.87 0.66 0.60 III. Net irrigated area 11.06 0.3 0.32 IV. Gross irrigated area 11.19 0.3 0.45
2.2 Aizawl District
Aizawl, the scenic capital of Mizoram, is the largest city in the state. At 3715 feet elevation from the sea level, Aizawl is a religious and cultural centre of the Mizos. Aizawl lies just north of Tropic of cancer. As
MART, Noida 14 Livelihood based Agri Business and Market Study in Mizoram per 2001 census, Aizawl population was 3,25,676 with literacy rate of 96.50%.The district has 13 assembly constituencies, 5 RD Blocks and 93 villages.
The District is headed by the Deputy Commissioner / District Collector. As Aizawl is the district headquarter as well as the state capital, all the line department offices are situated in Aizawl itself. Line department offices are in each Block Headquarter.
The district is well connected with good roads and also an airport at Lengpui, which connects it with Kolkata, Imphal and Guwahati. Discussions with the local residents and functionaries reveal that Aizawl is on the fast track towards development with better transport, information and infrastructure facilities which is clearly visible. The Village Councils are quite active in the implementation of the various rural development works. Schools and anganwadis are located in every village with good provision for safe drinking water.
Land use statistics of Aizawl district Figs in Thousand hectares S.N. Particulars 2008-09 Aizawl I. Geographical Area 357.63 II. Reporting area for land utilization 357.63 1 Forests 107.28 2 Not available for cultivation 22.56 2 a Land put to non-agricultural use 21.03 2 b Barren and uncultivable land 1.52 3 Other cultivated land excluding fallow land 168.34 3 a Permanent pastures and other grazing land 1.02 3 b Land under miscellaneous tree crops and groves not included in 162.61 net sown area 3 c Cultural waste 4.71 4 Fallow land 39.16 4 a Fallow land other than current fallows 28.97 4 b Current fallows 10.19 5 Net sown area 20.26 6 Total crop area 20.93 7 Area grown more than once 0.66 III. Net irrigated area 0.3 IV. Gross irrigated area 0.3
2.3 Lunglei District
Lunglei District, the biggest District in Mizoram is bounded on the north by Mamit and Serchhip Districts, on the south by Lawngtlai and Saiha Districts, on the east by Myanmar and on the west by Bangladesh. It has an area of 4,538 sq.km with a population of 1,37,155 (2001 census) and 186 villages. There are three
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Civil Sub-Divisions namely – Lunglei Sadar Sub-Division, Tlabung and Hnahthial Civil Sub-Divisions. The District is also divided into four Rural Development Blocks – Lunglei, Hnahthial, Lungsen and Bunghmun.
Geographical Area : 4536 sq km No. of Sub Division : 3 No. of RD Block : 4 No. of Notified Town : 3 Population : M-83789, F-79707 Highest Peak (Puruntlang) : 1758 Mt Lowest Elevation (Karnaphuli river) : 20 Mt Longest River : 82.79 Kms
Land Use Statistics of Lunglei district Figs in Thousand hectares S.N. Particulars 2008-09 Lunglei I. Geographical Area 453.8 II. Reporting area for land utilization 453.8 1 Forests 196.75 2 Not available for cultivation 28.63 2 a Land put to non-agricultural use 26.69 2 b Barren and uncultivable land 1.93 3 Other cultivated land excluding fallow land 162.91 3 a Permanent pastures and other grazing land 1.53 3 b Land under miscellaneous tree crops and groves not included in net 155.95 sown area 3 c Cultural waste 6.19 4 Fallow land 49.73 4 a Fallow land other than current fallows 36.79 4 b Current fallows 12.94 5 Net sown area 15.75 6 Total crop area 16.36 7 Area grown more than once 0.60 III. Net irrigated area 0.32 IV. Gross irrigated area 0.45
2.4 Livelihood Issues
The total production of paddy fluctuated from 1.14 lakh MT in 2003-04 to 1.07 lakh MT during 2004-05 and .99 lakh MT 2005-06 to .42 lakh MT in 2006-07 and .42 lakh MT in 2006-07 to .15 lakh MT in 2007- 08. Fall in production particularly in 2006-07 and 2007-08 is due to rodent devastation of crops in the
MART, Noida 16 Livelihood based Agri Business and Market Study in Mizoram wake of gregarian flowering of bamboo. Damage was so extensive that intensive programme of rodenticide was taken up and about 14,55,568 nos. of rodent population was killed saving a portion of the produces in 2007-2008. Apart from increase in rodent population, during gregarian flowering of bamboo other insects like Thangnang (treebug) multiply manifold and cause extensive damage of crops.
Though more than 60% of the population area engaged in Agri and Allied activities, the share of Agriculture in the Net Domestic Product (NSDP) is merely 30% at current prices during 1998-99. It is imperative to substantially improve upon Agri and Allied Sector to raise NSDP and therefore, there is the urgent need for aggressive developmental intervention to enhance productivity and income of cultivator. In a State where more than half the population is rural and where nearly 60% of the people depend directly or indirectly on agriculture, most of them engaged in jhum practices, the only way to ensure inclusive development is to develop the primary and rural sectors and to augment the income level of the rural population.
In economical classification of workers as per 2001 census majority of Mizoram population i.e. 60%, are cultivators and are engaged in Agricultural activities mostly practicing Jhum cultivation. In the olden days with availability of vast area of land including forest land, smaller size of population and in view of self- sustaining families/ rural economy, the Jhum practices were a viable proposition. But the impact of increased pressure on land, particularly forest land led to shrinkage of 10 years Jhum cycle to 3-4 year cycle lowering productivity and production thus rendering Jhum practice uneconomical. Other factors, in addition to pressure on land causing decline in Jhum cultivation include
Sustained initiative for Jhum control as a matter of Government Policy for last several years and awareness campaign about adverse impact of Jhum practice in Mizoram economy. Switch over to other livelihood activities like horticulture, terrace farming, Animal husbandry, contract works and wage earnings from construction works etc. Various developmental activities opening avenues for easier option like contract etc. as distinct from hard work involved in Jhum practices Pressure on land has made Jhum size small and shrinkage of Jhum cycle cause low productivity resulting in poor income for the farmers. Availability of food stuff through PDS system and import of many items from other states. As a result farmers experience adverse impact of over production when they lose out in competition with traders from outside and or do not have access to remunerative markets. Crops like ginger, turmeric, orange and hatkora etc. are few instances where farmers are frequently forced to distress sale. The economy of the State is primarily agrarian with majority of the people practicing jhum cultivation. There are no major industries in the State to provide regular source of income to the people. About 50,000 persons alone are employed in various Government and Semi-Government undertakings, which reckons to 6% of the total population. There are 4334 nos. of SSI units as on 1.4.1998 besides people practice poultry, piggery, pisciculture and dairy in the homestead. Per capita income of the State in 1996- 97 is Rs.13,360. People are also engaged in sericulture, weaving, knitting and tailoring, bakery, workshops, trade, and in various cottage industries. Although literacy level in the State is 88.84% (2001 Census provisional figures), second in the country, lack of infrastructure development, remote location, poor market linkages, inadequate power supply has resulted in slow pace of industrial development in the
MART, Noida 17 Livelihood based Agri Business and Market Study in Mizoram
State. Difficult topography and limited flat terrain (Just around 3%) has also attributed to economic backwardness.
Jhum cultivation has become unproductive owing to frequent exposure of soil as is evident from the reduction of jhum cycle from 20-25 years to 4-5 years. Soil, moisture, vegetation, and bio-diversity loss has rendered large area refractory and unsuitable for jhuming. Presently jhum cultivation is practiced by burning standing Bamboo which in itself is a great loss in term of revenue.
North Eastern region including Mizoram is characterized by rich and abundant resources (forest etc) but paradoxically the people are still in poverty in the midst of plenty. In the absence of alternative livelihood activities most of the people depend primarily on the exploitation of these resources. As a result there is increasing pressure on forest land with aggravating land degradation problem without mechanism for resources regeneration. Such is the case in the region which is considered as one of the two areas of bio- diversity “Hotspot” in Indian sub-continent. Given this context various interventions has been directed at resolving both problems of poverty and natural resource degradation in this region. In Mizoram too one of the interventions was the 1st NLUP initiative during 1985-91 which was however, abandoned by the succeeding Government in 2002 and therefore the problems persists and needs to be addressed.
Apart from attaining self-sufficiency in such basic food items, with increased production there is scope to access markets within the country and even export markets of neighbouring countries particularly Bangladesh. Mizoram is having about 700 km bordering Bangladesh with 150 million population. Available statistics indicate that Agriculture account for 33.3 percent of GDP of Bangladesh; but this sector suffered a setback from 1997-98 when its annual growth rate dropped from 6.4 % in 1996-97 to 3.1 % in 1997-98. As per production figures released by Bangladesh statistics during 2000, Bangladesh produce 6,24,735 MT of vegetables as against its requirement of 1,05,85,000 MT and 14,94,120 MT of fruits as against its requirement of 63,51,000 MT. Deficiencies in vegetables and fruit production are 99,60,265MT and 48,56,889MT respectively. Though updated figures are not available requirement of items like Ginger, Chilli, Oranges, Sesame and Vegetables are on the increase aggravating deficiencies of such produces in Bangladesh. Mizoram can take advantage of the available Bangladesh market for such produces. In fact some quantity of Ginger, Turmeric, Sesame and also Bamboo are now being dispatched to Bangladesh through informal trade channels.
NLUP has therefore incorporated programmes for Production of Agro-Horticultural produce and Bamboo resources aiming at potential export markets in neighbouring countries of Bangladesh and Myanmar.
Mizoram is basically an agrarian economy being dependent on subsistence-oriented agriculture interlinked with other land based activities such as livestock and forestry etc. In the past in view of availability of vast Jhum land and Small population, the farming community could maintain, though low, a satisfying level of equilibrium. But increased population growth, changes in land use pattern resulting in loss of fertility and natural forest has profoundly impacted the economy rendering Jhum practices unsustainable.
All the tribal societies in Mizoram are undergoing rapid transformation as they come to terms with new developments impacting the socio-economic fabric of the tribal society. Their traditional lifestyle in
MART, Noida 18 Livelihood based Agri Business and Market Study in Mizoram conditions of adequate access to land for jhum cultivation provided a satisfactory subsistence livelihood. Now, rapid population growth has increased pressure on available land resources, forcing communities to seek alternative means of ensuring their livelihoods through urban employment, cash crop development, wage labour and exploitation of timber resources. Some have been more successful than others resulting in widening disparities both between and within communities. Modifications in land tenure arrangements have opened the door to land grabbing with the result that the traditionally egalitarian tribal communities are becoming increasingly economically stratified.
Mizoram represents a unique socio-cultural framework and faces similar if not the same set of problems. These factors have not always been taken into account in the design and implementation of development programmes within the region. As a result, the impact of development initiatives has generally fallen short of expectations. Stagnation in the rural economy persists and low productivity of jhum cultivation continues on a wide scale. Yields from jhum are low with paddy averaging 900 kg/ha. Before population pressure exerted its influence on demand for crop land, fallow cycles of 10 years or more were largely self- perpetuating and shifting cultivation was a relatively stable method of exploiting wooded hillsides. With the increased demand for land to maintain household food security, the jhum cycle has been reduced to 3 to 5 years and in some villages, down to two. As a result crop yields have gone down due to reduced fertility. Recent analysis of satellite imagery of the project area has also revealed significant encroachment of forest land over the last 7 to 8 years by jhum farmers. A significant change in cropping pattern has occurred in response to the decreasing fallow cycle with a trend towards increased commercialization of jhum cultivation. The shortening of the Jhum cycle (down to 3-5 years for many communities) with its impact on declining fertility has resulted in continued encroachment on the forest resources and progressive land degradation. The environmental consequences in an area renowned for its rich biodiversity are severe. Most families recognize that Jhum cultivation is no longer a sustainable livelihood system but they lack knowledge or conviction of alternative development options and the means to adopt them.
Paddy cultivation is declining in jhum lands under force of declining productivity to be replaced by higher value products for the market such as vegetables to provide cash to buy food grains. Settled agriculture on terraces and valley lands is dominated by rice cultivation. Technology is backward with limited use of HYV fertilizers and yield are low at 1.2 to 1.5MT/ha. Limited areas of horticultural and plantation crops have been planted in recent years, but the choice of crops has been production rather than market- oriented, resulting in severe marketing problems for crops.
In spite of the fact that agriculture is the mainstay for about 60% of the population of the State, only 5% of the total area is under cultivation and about 11% of the total cultivated area is under irrigation. It has remained backward industrially which can be attributed to physical isolation, lack of mineral resources in the state, distance from the heart of the country coupled with communication, etc. problems. In the small scale sector are the rice-milling, oil and flour milling, mechanized bamboo workshop, saw milling, brick making and furniture workshop. Lack of employment opportunities is a major handicap in the state. The state government, the primary employer, has more than 45,000 people on the rolls and is bursting at the seams. There is an equal number of educated unemployed with no large industries and just about 3,000 small scale units. Unemployment figure is
MART, Noida 19 Livelihood based Agri Business and Market Study in Mizoram
Employment in the State (in’000)
Particulars 2002 2001 Public Private Total Public Private Total Sector Sector Sector Sector Total 40.5 1.8 42.3 39.8 1.8 141.6 Employment Women 11.2 0.8 11.9 10.9 0.8 11.7 Employment
Against the background of failed development initiatives and the general air of distrust and disillusionment, the role of the Project will be to demonstrate a new approach to development which focuses on interventions which are technically appropriate, culturally sensitive and institutionally effective. This requires developing a genuine partnership between the communities, government and other agencies (such as NGOs and research institutes) in which all interventions will be demand-driven and client-oriented and for which the indigenous knowledge and capabilities of the communities will be accorded due recognition. This new approach will also emphasize transparency and accountability).
Development initiatives in the past have suffered from following constraints
an essential top-down approach to programme implementation, with little genuine involvement of the community, and little emphasis on the development of village institutions and of the necessary service facilities such as credit, extension, inputs supply and marketing required to sustain development, has left farmers feeling that schemes are imposed on them and hence they have little sense of commitment or of ownership of the scheme Lack of coordination between the line departments has prevented the promotion of coherent development strategies. This has also been largely responsible of the lack of adequate technical support to farmers in the management of their new developments farmers have been given inadequate training and extension support production rather than market-led approach to crop selection has resulted in the promotion of crops with limited marketing opportunities resulting in disillusionment on the part of farmers
MART, Noida 20 Livelihood based Agri Business and Market Study in Mizoram
Chapter 3: Livelihood Profile
3.1 Demographic Profile
Average number of Number of S. N. Village Name District/Block members per households household
1 Thingsulthliah Aizawl, Thingsulthliah 801 5
2 Phullen Aizawl, Phullen 406 5.5
3 Thanglailung Aizawl, Phullen 151 7
4 Sesawng Aizawl Thingsulthliah 500 5
5 Lungsen Lunglei, Lungsen 511 4.3
6 Rangte Lunglei, Lungsen 142 5.1
7 Phairuangkai Lunglei, Lungsen 285 4.2
8 Mualthuam ‘N’ Lunglei, Lunglei 280 5.1
9 Haulawng Lunglei, Lunglei 506 4.5
10 Tlungvel Aizawl, Thingsulthliah 600 4 Source: Field Study conducted in the month of September 2010
The above table clearly indicates that Thanglailung in Aizawl district comparatively has lesser no. of households but the average family size is the highest. Rest of the study villages has an average size of 4.7.
3.2 Population Profile
Population
Param Mualt Lung Ran Phairua Haula Thingsul Phul Thangl Sesa Tlun eters huam sen gte ngkai wng thliah len ailung wng gvel ‘N’
Total 2396 729 1200 2300 1400 4500 2300 870 2200 2714 Male 1121 401 666 1170 727 2322 1181 400 1178 1411 Female 1275 328 534 1130 673 2178 1119 470 1022 1303 Source: Field Study conducted in the month of September 2010
Out of the 10 study villages, Thingsulthliah has the highest population while Rangte has the least population. It also indicates that female population is comparatively higher in 2 villages’ viz. Lungsen and Thanglailung. Majority of the population is ST.
MART, Noida 21 Livelihood based Agri Business and Market Study in Mizoram
3.3 Land Holding Pattern
Land within Mizoram is in the customary ownership of the communities. Village land falling within the jurisdiction of a village is controlled by the Village Council while land distribution is done as per the customary practice of the community and villagers. The customary practices include jhum cultivation and other farming activities. But this customary community ownership of land with community is now undergoing certain modification to meet the needs of changing land use opportunities. Terrace and valley land is considered as private land with permanent, heritable and transferable rights through the issue of land settlement certificate (title) by the competent authority. However, lack of mortagageable title to the land does constrain access to bank finance.
The emergence of private rights over land has contributed to the concentration of land, particularly the better land, in the hands of a few affluent persons within the community disturbing the former egalitarian character of tribal society. As a consequence, tenancy arrangements are also becoming more common, usually in respect of terrace and valley land, although at present they probably represent less than 10% of the land area. All tenancies are governed by customary practices and are usually on a crop share basis with rents fixed at 33-50% of the production. Most of such tenants are coming from the neighbouring state of Assam and earn their livelihood at the cost of the local population.
Parameters Lung Ra Phair Haul Mualth Things Phu Thang Sesa Tlung sen ngt uangk awng uam ulthlia llen lailun wng vel e ai ‘N’ h g
No. of households
PP 102 29 190 380 210 228 270 9 183 198
E 0 0 0 0 0 0 0 0 0 0 Land Holdin LL 60 15 35 03 35 20 100 6 9 12 g VC 409 131 250 506 210 520 60 31 513 483 Patter P n LS 542 Nil 152 403 150 300 200 120 459 370 C
PP- Periodic Patta, E- Encroached, LL- Landless, VCP- Village Committee Pass, LSC- Land Settlement Certificate Source: Field Study conducted in the month of September 2010
Land has not been encroached by any household in the study villages. It is observed that Phullen has the maximum no. of landless households while Haulawng has the minimum no. of landless households. It also indicates that most landholding still lies with village committee.
Village / Lun Ra Phair Haul Mualt Things Phul Thang Sesa Tlun Parameters gsen ngt uangk awng huam ulthlia len lailun wng gvel e ai ‘N’ h g
Average 5 5 8 2 3 3 4 2 3 2.5
MART, Noida 22 Livelihood based Agri Business and Market Study in Mizoram
landholding per hh in acres
Total Land 2555 710 2280 1012 840 1920 1624 302 1800 1500 holding / village in acres Source: Field Study conducted in the month of September 2010
Most of the villages have permanent Pass (LSC) issued by the Revenue Dept., Govt. of Mizoram for their housing; whereas they have periodic pass issued by Village Council for their farming. Village Council has the power to give land on term base. The validity of this term is three years and can be renewed after three years, if the land has been utilized. Based on the effective utilization of the land the owner can pursue Periodic Patta from the department of Revenue. After three years of holding periodic patta, they can apply for LSC. But the taxes levied for LSC is high. Therefore, people usually ask LSC only for house site. Periodic Patta is issued by the Revenue Department. The period of lease varies but usually the period of lease is three years. The owner of the land has to pay a tax of Rs. 50 every year. Land settlement Certificate is issued by the Revenue Department. The holder of this certificate is the permanent owner of the land whereas in the above condition, the ownership is temporary. In villages, very less people apply for LSC for their farm land since the tax levied is high. The rate of tax is fixed by grade of the land which depends on the location and distance from the highway etc. The owner of the land is the head of the family but the ownership is temporary. The Village has the power to fix the rate hence different villages may have different rates. TIN is the measurement unit for area and production of agricultural crops. A TIN is equivalent of 15 litres by volume; it is a measure of an empty mustard oil tin of 15 liters capacity. A tin of paddy weighs 10 kg. One tin of paddy seeds can cultivate one acre of land. In terms of yield, one tin of paddy seed will produce 90 tins (900kg) of produce.
3.4 Land based livelihoods
Agriculture occupies a very important place in the economy of Mizoram,. In the Economical Classification of Workers as per 1991 Census, majority of the population i.e. 61.37% are cultivators who are engaged in agricultural activities mostly by practicing ‘Jhum’ cultivation. Meanwhile, the share of agriculture alone in the Net Domestic Product (NSDP) is merely 30% at current price during 1998-99. As per the Agriculture Census (1995-96-the latest census), there were 65,919 operational holdings with a total operated area of 85,000 hectares. Out of the total number of holdings 42.04% is marginal 39.0% small, 17.83% semi medium 1 .11% medium and 0.01% large holdings.
In spite of the fact that agriculture is the mainstay for about 60% of the population of Mizoram, only 5% of the total area is under cultivation and about 11% of the total cultivated area is under irrigation. Paddy continues to remain the chief food crop and the staple food of the Mizo. It occupies almost 50% of the total cropped area and more than 88% of the total area under food grains. In spite of the fact that the rice being the most important crop occupying the largest share in area and production, Mizoram is still not self sufficient in rice production.
MART, Noida 23 Livelihood based Agri Business and Market Study in Mizoram
a. Cultivation Status of crops
Crops Cultivation in % of villages % of households involved
Paddy 100 54%
Maize 100 54%
Soyabean 70 20 %
Bean 20 5 %
Pea 100 25%
Arecanut 30 4%
Potato 10 1 %
Mustard 100 54 %
Pumpkin 100 100%
Brinjal 100 100%
White Pumpkin 100 100%
Pineapple 90 5 %
Mango 100 40 %
Lemon 100 100%
Orange 100 60%
Turmeric 90 13%
Rubber plantation 20 4%
Sugarcane 100 4 %
Chili 100 50 % Source: Field Study conducted in the month of September 2010 It is a usual practice for the Mizo farmers to grow multiple crops together with paddy. Some of the most common crops mixed with paddy are maize, brinjal, chilli, sesame, mustard, peas, pumpkin and white pumpkin. The economic life of the Mizo has always been centered around jhum or shifting cultivation. Under Jhum cultivation the principal crop is paddy and others are maize, cucumber, beans arum ginger, mustard, sesame, cotton etc. After clearing the burnt jhum, seeds for crops other than paddy are sown. Towards the end of April during the full moon period, paddy is sown. Mainly two types of paddy seeds are sown in the same field – early paddy and principal paddy. Yield of early paddy is rather poor but it ripens early and provides sustenance till the principal paddy is harvested. Some pulses like cowpea, rice beans and French beans are cultivated in the jhum. Oilseeds crops like sesame, mustard and soybean are growing well in the state. There is vast scope for cultivation of tapioca, sugarcane, cotton, pulses and oilseeds in the state.
MART, Noida 24 Livelihood based Agri Business and Market Study in Mizoram
Even though paddy is main crop in Mizoram, the state is not self-sufficient. Generally the household level production meets their need for 4-6 months. The Village Council and the local NGO are very strict about forest fire. The Village Council issued a local order that any person found causing forest fire will be fined heavily. Because of this many families refrained from jhum cultivation in the current year. All the produce except horticulture plantations are mainly for household consumption. If the product is more than what they need for consumption, they sell it in the local market. Sometimes few families sell their products in the nearby town. They cultivate turmeric, ginger and cabbage etc, in separate jhum. Turmeric, ginger, chili and sesame are basically grown for the purpose of income generation wherein around 2-8% produce is consumed locally and rest is sold in the local and town market. Ginger used to be one of the major cash crops, but in recent years it has been badly affected by disease. Farmers have refrained from growing this crop and therefore this year very few families have taking up this crop in Lunglei. However, in other districts some villages always take up ginger as their main crop. Turmeric is a common crop in Lunglei wherein around 250 families in Lungsen village alone have taken up its cultivation. Chili and yam are also grown here for subsistence and if surplus they sell it in market. Yam is also used as feed for pigs. Under MGNREGS Scheme orange, pineapple, rubber, areca nut and coconut are also grown in Lungsen village with 100% support from the government to selected families in recent years. These varieties are yet to yield produce. Orange, lemon and pineapple are produced in large quantities. Some villages e.g. Mualthuam ‘N’ has good area under orange cultivation. Suitable climate along with fertile soil helps in the getting good yields but due to lack of proper marketing system, many people are yet reluctant to take up its cultivation. Regarding the horticulture plantation especially orange, major concern which have been raised are long gestation period, proper marketing infrastructure and financial constraints. There is limited awareness on the short gestation variety of crop. Production season is almost the same for all the crops as there is lack of irrigation facilities in the districts. Most of the agri fields are rain fed.
b. Area under cultivation, volume, yield and consumption levels
Crops Average area under Average yield per Average volume Volume cultivation (acres) HH (range in %) produced per consumed in village (in q) village (%) Paddy 330 Acres 1 ac = 420 kg 1585 q 100 Pulses 2 Acres 1 ac = 10 kg 8 q approx 100 Arecanut 20 Acres 1ac=350 pieces / tree 245000 pieces 100 Potato 8 ac in one village only 1ac = 15 kg -- 100 Pineapple 0.4 ac / HH 152880 fruits in 10 152880 fruit in 10 97 villages villages Rubber 1 ac /HH in 2 villages In gestation period - -
MART, Noida 25 Livelihood based Agri Business and Market Study in Mizoram plantation only Source: Field Study conducted in the month of September 2010
The agro-climatic condition in Mizoram is found to be very suitable for growing a wide range of fruit crops out of which mandarin orange is the dominant fruit crop, the total area covered under this crop was 6395 hectares with a total production of 41567 MT during
2007- 08. The next important fruit Source: Economic Survey, Mizoram 2008-09 crop is Banana, the total production during 2007-08 was 151519 MT covering an area of 6220 hectares. A considerable amount of passion fruit is also produced in Mizoram, the area and production during 2007-08 was 8944 hectares and 44720 MT respectively. Keeping these in view, the Government has laid emphasis on developing fruit crops of high market potential like Passion fruit, Orange, Hatkora, Banana etc. by area expansion and other essential measures. Overall it is clear from the adjoining table that the area and production of Turmeric has tremendously increased over the previous year while the coverage area and production has drastically decreased in case of Birds eye chilli. Most of the families in the study villages are into jhum mainly for subsistence farming. Normally paddy cultivation is done on an avg. of 2 acre land. Production season is usually from May to November and yield depends on the fertility of the soil and the intensity of the other crops sown together with the paddy. Productivity of land also varies from village to village. Productivity in Phairuangkai and Haulawng area was found to be very high, yielding around 80-100 kg. of paddy from 1 kg. of seed.
c. Average production of major crops per household
Crops/ Fruits Production Range / HH Paddy 420- 1500 kg Maize 400- 2000 kg Soyabean 50-100 kg Orange 10- 50 q Turmeric 2-10 q Source: Field Study conducted in the month of September 2010
MART, Noida 26 Livelihood based Agri Business and Market Study in Mizoram
d. Marketable surplus and Selling dynamics
Crops Marketable surplus Average selling Selling system (% of quantity per village price produce) (%) (Rs per unit ) Govt. VT Haat IB
Paddy Nil 100/Tin - - - -
Pulses 2 50 – 70/kg/ - 10 90 -
Arecanut 99 Rs 1/piece/ - 90 10 -
Potato 95 Rs 10-20/kg - 20 80 -
Pineapple 95 Rs 5 – 15 / piece - 70 30 -
Orange 95 Rs 3-5 / piece - 50 - Rs -1-2 / piece 50
Turmeric 98 Rs 3-5/ Kg - 100 - -
Vegetables (except - - - 50 50 - potato)
Fruits (except - - - 80 20 - pineapple) Govt.: Government, VT: Village Traders, Haat: periodic market, IB: Institutional Buyer Source: Field Study conducted in the month of September 2010
There is hardly any marketable surplus of paddy. If sold, mostly due to insistence by poverty, it is generally to the neighborhood at Rs. 100/tin. Price do not fluctuate much but in 2007, it rose to Rs. 150/tin due to bamboo famine. Other crops grown together with paddy are usually sold in the local market. Usually pumpkin is sold @ Rs. 20-25/kg, White Pumpkin @ Rs. 20-30/kg, Yam @ Rs. 15-20/kg, Maize @ Rs. 1-2/piece, Brinjal @ Rs. 10-15/kg and Pan leaves @ Rs. 30-50/kg. When the demand is less in local market, they also go to Lunglei town market to sell their produce. Turmeric is often sold to Bangladesh through Tlabung (a sub town located near Bangladesh border) trader which is about 40kms far. Prices fluctuate happens on a daily basis. It usually ranges from Rs. 3-9/kg for the green turmeric. Market is not constant and sometimes there is no demand even in the harvesting season. Turmeric is not so vulnerable to disease as compared to ginger. Birds eye chili has a better market demand and the price of dried chillies range from 100-200/kg. It is usually sold to Silchar, Assam based commission agents and traders. Oranges are generally sold in local market at a rate of Rs. 3-5/piece which has not fluctuated over the last 2-3 years. But in some villages where production is high, traders from Silchar come and negotiate the price with the owner. They usually sell on the basis of the number of fruits per trees and this practice is called pre harvest trading.
MART, Noida 27 Livelihood based Agri Business and Market Study in Mizoram
Household level amount consumed and extent of marketable surplus varies for different produce. Usually in cash crops like turmeric, orange, chili etc. volume consumed ranges from 2 – 8 %, while the rest is sold. 2. Investment and Value Addition
Crops Investment Value additions practices at the Role of women in per unit (Rs) village level production and value addition No change in Change in practices form form
Paddy Rs 1200-1800/ No change in form Yes Acre
Pulses - Yes
Arecanut - Yes
Potato - Yes
Vegetables - Yes (except potato)
Pineapple - Yes
Fruits (except - Yes pineapple)
Rubber - Yes plantation
Tea plantation - Yes
Note: Investments are not applicable for others crops accept Paddy since it is mixed farming
Source: Field Study conducted in the month of September 2010
For land preparation, the trees in the forest are usually felled in the month of December-January every year. It is left to dry for a couple of months and then it is burnt. Then the land is ready to sow the seeds. Weeding process is done thrice in a year in the field and it requires lot of investment if labour from outside, is involved. But generally farmer along with other family members are engaged in this activity preventing outflow of cash. Agricultural crops are harvested November to December every year. The seeds for these crops are never bought from market but retained from the previous crops. However, the seeds of winter crops like cauliflower, cabbage etc. are bought from the market. In all farming activities women work along with men. However, preparation of field e.g. cutting forest for jhuming is regarded as the responsibility of the men folk.
MART, Noida 28 Livelihood based Agri Business and Market Study in Mizoram
It is difficult to assess the expenditure incurred in different crops which are grown along with paddy. Usually the wage rate for men in slashing down trees for land preparation is Rs. 150-200/day where women do not have much role. To clear 1 acre of area, 15 person days is required and after burning, about 5 person days is required to clean the area. 10-12 person days are necessary for sowing paddy in 1 Acre. (Around Rs. 3000 is required for cutting and burning per acre and Rs 1500 for sowing and planting e.g., Land preparation- 5 men * 200 per day * 3 day= 3000/- etc. Sowing of other crops does not take much time and energy. For 1 acre, two person days is sufficient. For harvest per acre 20 man days is usually required In the villages there is very less use of fertilizers and pesticides. There is a lack of irrigation facilities in these villages and its neighboring area. In case of orange, pesticides are used in lesser amounts to protect falling of fruits at tender stage due to insect bites. Farmers in these villages lack knowledge about adding value to their produce. While most of their agricultural produce is sold in the raw form, a few are sold village level no-change-in-form value addition e.g. cleaning, sorting, grading and packing. In case of farmers clean and separate the straw and grind in the rice mill to get the rice. Husk, the by product, is generally used as a feed for pig. In case of Chili, it is cleaned and sorted and dried in the hot sun before sale. Turmeric is sold after cleaning/ washing the soils out of it. In rare case, few people slice it, dry it and then grind it into powder. The powder thus obtained is mostly for domestic use and very few families are involved in selling purpose. Maize is also graded in two varieties viz. big maize and sticky maize but the market rate is generally the same. It is sold at Re. 1 per piece in the local market. Unripe banana from the forest is collected that are ripened in a container at the household level. Some village also dry bean leaves which are sold at a higher price in the village haats or to the village traders. With respect to value addition of produce it is women who initiate it and generally contribute more than men.
Seasonality of Land based Livelihoods
Major Crops Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Paddy P P P P P P PM PM PM
Pulses P P P P P P PM PM PM PM P P
Arecanut PM P P P P P P PM PM PM PM PM
Potato P P P P PM PM PM P P P P P
Pineapple P P P P P PM PM PM PM P P P
Orange PM PM PM M M
Turmeric PM PM PM PM
Ginger PM PM PM PM
P- Production, M - Marketing, PM – Production and Marketing Source: Field Study conducted in the month of September 2010
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3.5 Livestock based livelihoods
a. Status of Livestock based livelihoods
Major Livestock Availability in % of villages % of households involved
Fishery 20 Only 7 hhs
Piggery 100 80
Goatery 15 1
Poultry-Meat 100 50
Poultry-Egg 0.2 8
Cattle – Milk 30 0.08
Source: Field Study conducted in the month of September 2010
More than 80% of the households in all the selected villages rear pig and fowl for domestic consumption. Generally, people keep pig on an average of 1.5 pigs per family. One piglet takes 12 to 15 months usually to get matured. A good number of families are involved in poultry farming. One chic takes 3 months to become 3 kg chicken. While 10% of the produce is used for domestic consumption, rest is for market sale. An SHG in Rangte village started a poultry farm but disease affected their birds and they had to prematurely stop the activity. Dairy, fishery and sericulture are undertaken by very few families because of lack of availability of pasture land, water supply and high input costs. Around 30% of the fish produce is consumed and rest is sold whereas 100% of the products in sericulture is marketable surplus. Cattle farming is not practiced the villages though consumption of beef is very high. It is mostly imported from Burma.
b. Marketable surplus and selling dynamics
Product Marketable Selling price Selling system (% of produce) surplus quantity (Rs per unit ) per village (%) Govt. VT Haat IB
Fish 60 120 / KG - - 100 -
Pork 98 160 / KG - 65 35 -
Poultry- Meat 60-80 150-170KG - 60 40 -
Cattle - Meat 40 150-180KG - - 100 -
Source: Field Study conducted in the month of September 2010 Pig rearing activity is largely for income generation but poultry is mainly for household consumption. However few households also undertake it for income generation. 60-80% of poultry meat produced by them is sold in the local markets.
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Price of the pork is Rs. 160/kg, poultry Rs. 150-160/kg and fish for Rs. 160/kg which they mostly sell in the local market and occasionally to Lunglei & Aizawl Town. Generally price of pigs are fixed by the owner in negotiation with the buyers (butcher) based on the chest measurement of the animal. Sericulture wool is sold to Sericulture Department of Mizoram at Rs. 160/kg.
c. Investment and value addition
Major Livestock Investment Value additions Role of women in production per unit practices at the village and value addition practices (Rs) level
Piggery 2500-3000 - Yes per piglet
Poultry 45-60 per - Yes bird
In the village pigs are usually fed with leaves, paddy dust and food waste of the family. One piglet cost Rs. 2500-3000/-. According to pig rearers a good pig house that can accommodate 4-5 pigs would require Rs. 12,000/-. Cooked food is preferred for the pig feeding. Cooking pot also cost 1,200 that can last for more than 3 years. One day old chick cost Rs. 50 that gains 3kg weight within three months. According to SHG’s calculation, gross profit of Rs. 2000 of can be made by rearing 15 chicks for one month. No value addition of livestock based produce is done by the community. In case of pigs it is just a matter of cleaning the hair by burning and then selling. In case of poultry, removing feathers and cutting in desired pieces is the only process/activity done to sell the chicken.
d. Seasonality Analysis Major Livestock Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Piggery PM PM PM PM PM PM PM PM PM PM PM PM Poultry PM PM PM PM PM PM PM PM PM PM PM PM Fishery PM PM PM PM PM PM PM PM PM PM PM PM Goatery PM PM PM PM PM PM PM PM PM PM PM PM Cattle PM PM PM PM PM PM PM PM PM PM PM PM P- Production, M - Marketing, PM – Production and Marketing
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Private Pig Farm Owner
Mr. John established a private pig farm in Ropuak, Aizawl on April 2008. He engages in rearing and trading of both pigs and piglets. At present he has around 20 pigs, out of which 4 are male and 16 are female. He has only non descriptive varieties of pigs in his farm. According to him, pig gives birth to piglets two times in a year with 8-12 piglets per birth. With low mortality all the piglets have survived at his farm. Following section captures his practical experience of running the farm.
Major Inputs and Investment
- Water- 15-25 litres/day/pig - Feed Consumption for Male is 1.5kg/day, while for female is 3-4kg/day, cost of feed is Rs 18-19/kg,; hence cost of feeding 20 units comes to Rs. 4.5-4.78 lakhs - Purchase around 10 bags feed per month to feed 20 pigs. 10 bags= 50 kg. = Rs 900-1000/month - Shed preparation using bamboo and steel sheets, costs around Rs 17,000/- - Maintenance cost of the shed- 1200-1400/year - Equipments required - 2-3 vessel (5 tin capacity) for cooking feed, where 1 vessel cost around Rs 5000/- therefore Rs. 15,000 for the vessels - Medicine- Rs 300-500/year/pig + Rs 50/- for veterinary doctor charge per visit; at least 4-5 visits per year happens, therefore cost towards medicare is Rs. 10000 - Labour charge- 1* 2500= Rs 2500/ month Pricing mechanism - He sells pigs (8-10 month old, 42 inch- 46 inch size, and 80-85kg weight) in the range of 13,000-16,000/- - He sells piglets (2-3 month old) for Rs. 3000/- - Meat categorizes in two classes- A & B. Aizawl market price- A class meat- Rs 180/kg. & B class meat- Rs 160/kg Selling pattern - He sells pigs and piglets to local people in vicinity at Rs. 13000-15000 per pig (size- 42’-44’’) and Rs.3000 per piglet (avg. 2-3 month old) respectively. - He sells around 3-6 pigs and 50-60 piglets per year. Major Problem - High cost of feed - Lack of water - Lack of finance to build permanent shed
3.6 Service based livelihoods
Service based Availability in % of households Place of work livelihoods % of villages involved (within village / outside)
Army 90 6 Out side
Permanent Govt. job 100 14 Within village
Permanent Private job 70 2 Within village
Electrician 80 1.5 Within village
LIC agent 30 0.3 Outside
Driver 100 8 Within village
Plumber 70 1 Within village
School teacher (PVT) 100 9 Within village
Hotel jobs 40 0.5 & Outside and within village Source: Field Study conducted in the month of September 2010
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The above table clearly depicts that service based livelihood is very low in these villages. Some are employed either in private sector or in Govt. organization.
3.7 Non Timber Forest Produce (NTFP) based livelihood
a. Status of NTFPs
NTFPs Availability % of Average Storage Value in households number facility in Addition % of villages involved of harvest village possibility days per year
Bamboo shoot 100 30-60 90 days No Yes
Honey 100 5-10 60 days No No
Fuel wood 100 10-40 360 days No No
Banana 100 10-40 360 days No Yes
Amla 100 10-40 90 days No Yes
Thingthupui 100 10-40 60-70 days No No Dysoxylum gobarum
Baibing 100 10-40 50 days No Yes Alokasia fornicate
Chingit 100 10-40 50days No No Zamthoxylumrhetsa
Tumbu 100 10-40 360 days No Yes Heliconia angustifolia
Telhawng 100 5-30 50dyas No No Arisaema specciosum
Chakawk 100 10-40 60 days No No Source: Field Study conducted in the month of September 2010
- Some of the most common NTFP in Mizoram are Bamboo Shoots, Banana, Mushroom, Thingthupui and Chakawk. Except Zawngtah and Banana, most of the items are collected during summer season. - More women than men are involved in collection and selling of NTFPs. Method of collection is hand picking. They usually spend around 4-8hrs per day. They go in the morning and return at noon. - Villagers collect a range of Non Timber Forest Produce (NTFP) from the nearby forest. Mautuai (Bamboo shoots), Bil, Vuakdup, Theikawrak, Vawnva, Theipui, Sunhlu (Amla), Balha (Banana), Lakhuih, Zawngtah, Pangkai,Pelh, Pa (Mushroom), Tumbu, Chkawk, Telhawng, Khanghu, Thingthupui, Kawhtebel, Chakai (Crab), Chengkawl, Broom Grass etc. are collected by the village community. They form a major avenue for cash income at the individual household level.
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- Except for Balhla, Lakhuih, Tumbu, Thingthupui, which are available year round others NTFPs are available in particular months. Majority of them are available for 2-4 months in a year. - NTFPs are collected on an individual basis. They do go to forest in groups. Selling of NTFPs is also on an individual basis and there is hardly any attempt to aggregate and sell the produce in bulk. The collectors generally process (mainly which does not lead to a change in the form of the produce) the produce by way of cleaning, packing in small units in poly packets, carry it to the market and sell it to the consumers. It is the women that take a major role in cleaning, packing and selling them.
b. Marketable Surplus and selling dynamics
NTFPs Average marketable Average selling Selling system (% of surplus per village price produce) in a season (q) (Rs per unit ) Govt. VT Haat IB
Bamboo shoot 45 1/piece 90 10
Honey NA 500/bottle(size of 95 5 bottle) 750ml
Fuel wood 1500 1.5/piece 90 10
Banana 16800 2/piece 80 20
Amla 5 70/kg 95 5
Thingthupui 4.5 20/bundle 70 30 Dysoxylum gobarum
Baibing 6 0.50/piece 70 30 Alokasia fornicate
Chingit (English 4 20/bundle 70 30 name)
Tumbu 6 5-10/piece 90 10 Heliconia angustifolia
Telhawng 2 150/kg 90 10 Arisaema specciosum
Chakawk 12 10/bundle 90 10 Diplazium maximum
Govt.: Government, VT: Village Traders, Haat: periodic market, IB: Institutional Buyer Source: Field Study conducted in the month of September 2010
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c. Seasonality
NTFPs / Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Remarks Months
Bamboo shoot 7 pieces (Mautuai) for Rs. 10; 16pieces for Rs. 20
Bil 3 tea cups for Rs. 5
Vuakdup 4 pieces for Rs. 10
Theikawrak 1 tea cup for Rs. 5
Sunhlu 1 tea cup (amla) for Rs. 5
Balha 5 pieces (banana) for Rs. 10
Lakhuih 1 small (pineapple) size piece for Rs. 5, 1 medium size piece for Rs. 10
Zawngtah 5 pieces for Rs. 10
Pangkai 50 balls for Rs. 5
Pelh 1 piece for Rs. 10
Pa Rs. 200- (mushroom) 250 per kg
Heliconia 5 pieces angustifolia for Rs. 10 (Tumbu)
Chakawk 5 pieces Diplazium for Rs. 10 maximum
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Arisaema 1 pack for specciosum Rs. 10 (Telhawng)
Khanghu 1 pack for Rs. 10
Dysoxylum 1 pack for gobarum Rs. 10 (Thingthupui)
Kawhtebel 1 pack for Rs. 10
Vawnva
Theipui
Fu
Baibing Alokasia fornicate Source: Field Study conducted in the month of September 2010
NTFPs are usually sold in the local market. On very few occasions villagers sell the produce to the town market. Village traders and haats are the most important market access points for the NTFP collectors. During collection of aforesaid forest produce villagers also collect Chakai (crab), Chengkawl (fish) from the river bodies. In a discussion with villagers in Lunglei it was found that they catch crabs and fishes from different rivers namely Hmangua, De, Ngahleng, Sum and Rekte. Although availability of wild honey has reduced drastically, villagers reported of collecting wild honey. There were very few incidence of household actively engaged in beekeeping at the village community level. Broom grass and fuel wood are regularly collected for household level consumption. All the sales are on cash basis with no barter or credit.
d. Value Addition status of NTFPs
Major NTFPs Availability Value additions practices at Role of women in of the village level production and value processing addition practices No change in Change in units form form
Bamboo shoot No √ Yes
Honey No √ Yes
Fuel wood No √ Yes
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Banana No √ Yes
Aonla No √ Yes
Thingthupui No √ Yes
Baibing No √ Yes Alokasia fornicate
Chingit No √ Yes Zamthoxylumrhetsa
Tumbu No √ Yes Heliconia angustifolia
Telhawng No √ * Yes Arisaema specciosum
Chakawk No √ Yes Diplazium maximum Source: Field Study conducted in the month of September 2010
For NTFP collection a bamboo basket and knife / sickle are required. Since it is seldom collected in bulk, they carry bamboo baskets on their back. There are places where they have to pay a paltry fee (specify) if they occupy village haat. Those who want to avoid this, often sell their products outside. In a very rare case, they add value to these products. The only thing they do is that they clean and pack it in bundles in whatever way they know in order to make it easy for transport/carrying for the buyers. With regards to Telhawng, the process of value addition is long and tedious. It is firstly sliced into pieces and is then grounded. After that it is boiled thoroughly with baking soda powder, washed with clean water and then the product is sold.
3.8 Existing amenities and infrastructure in villages
Infrastructure / Amenities Availability within the Distance travelled to avail village (%) the facility (range in km)
Road 100 --
Electricity 100 --
School Building 100 --
Irrigation Nil --
Telephone 100 --
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Bank 40 7-50 km
Post Office 90 7-20 km
Transport 100 --
Veterinary extension services 50 7-20 km
Skill training centre (type)* 10 0-50 km
Milk collection centre Nil 0-125 km
Nursery Nil 0-125 km
Drinking Water 100 --
Com. Building 100 --
Cold storage Nil 20-125 km
Agro. Co-operative 40 0-50km
Marketing co-operative 30 0-50km
Haat 90 0-7 km
Forest Godown Nil 0-125 km
Rice mill 100 -- Source: Field Study conducted in the month of September 2010
Some of the important facilities available in the study villages in Lunglei district are as follows:
Most of the villages have access to mobile phones and WLL. Among the 5 villages, only Haulawng and Lungsen have Bank (Mizoram Rural Bank). Overall access to financial institutions is very low. Proper Post Office is not available to these villages except Lungsen. BPO is available except in Rangte. All the five villages have access to all-weather road which is not maintained properly. Lungsen village have a nursery which is maintained by Forest Department, Government of Mizoram. All the villages have a school building built by government of the state and some schools from SSA. Most of the villages have drinking water supply through gravitation. All the villages have Community Halls which serves as common gathering place for the villagers. Villagers avail private means of transportation for their products and travelling, since public transportation to far flung villages is inadequate. All the 5 villages have access on electricity but power supply is erratic. Only two villages out of five have access to the veterinary department. In all the villages, 1-2 rice mills are available for the people wherein paddy de-husking is done to obtain rice.
Some of the important facilities available in the study villages of Aizawl district are as follows:
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- Unavailability of bank is the main constraint faced by the community severely limiting their access to formal finance. People for around 2 hour journey to access the nearest bank. - Lack of veterinary resource available at the block level is a big problem. Though one Veterinary field assistant looks after one block, high service charge to avail their services for medical support limits the utility. - Out of the 5 villages 3 villages have the branch of Mizoram Rural Bank and 2 villages have Extension counter. - Each of these villages is having veterinary extension services. - Each of these villages are having community hall, post office, agro cooperatives, marketing cooperative, haat, rice mill etc. There is one skill training centre under SIRD in one village. Various Departments present in these villages are BDO (RD), SIRD, soil &water conservation dept., veterinary department, social welfare (CDPO), Sericulture, Electric Dept. Border Road etc.
3.9 Skill Status
Skill Available in % of Average number Use skill for Tradition skill/ villages of persons Business purpose acquired skill possessing skill (Yes/No)
Stitching 100 20/ village 8 yes Acquired
Embroidery 100 6/ village 2 yes Acquired
Food processing 100 5/ village 5.5 yes Acquired
Candle making 70 1 / village 1 yes Acquired
Handicraft 100 10 / village 7 yes Traditional
Stick making 100 23 / village 23 yes Acquired
Weaving 100 10 / village 5 yes Traditional
Knitting 100 13 / village 3 yes Traditional
Electrician 80 7 / village 2 yes Acquired
Carpentry 100 16 / village 12 yes Acquired
Construction 100 7 / village 5 yes Acquired
Driver 100 36 / village 10 yes Acquired
Insurance agent 1 / village 1.2 yes Acquired Source: Field Study conducted in the month of September 2010 Skills exercised by the rural youth are normally traditional ones e.g., tailoring construction, carpentry, handicraft, weaving, knitting etc. Skills like stitching, embroidery, food processing, candle making, beauty parlour, electrical, carpentry, construction are acquired from schemes under Govt. of Mizoram such as TRYSEM, DWCRA and various schemes of DIC. Training organized and imparted by JSS, ITI and other private institutions has also helped in acquiring skills.
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It is learnt that handicraft activity was existing sometime back but has died since the artisans involved in the activity did not receive any kind of training to upgrade their skill.
3.10 Credit Scenario
Most of the financial need is met through relatives and neighborhood. The amount borrowed ranges from Rs 1,000-Rs 10,000. The overall credit scenario is not encouraging and majority of respondents had problems in access to financial institutions and loan sanction. Apart from the long distance to access Bank, policy and process of giving loan to the farmer is complex and many times beyond the seekers ability. Without initial capital fund, land and others resources will remain underutilized. In Thingsulthliah block in Aizawl district, most of financial need is meet by the rural bank branches apart some private money lenders. Farmers face lots of problem in taking loans. They complained that they do not get cooperation from these banks. Banks are not willing to sanction loan without guarantor and security.
3.11 Village Level Markets
Types of Facilities Availability in Average number Type of products % of village per village Permanent shops in the village 100 17 Grocery
Temporary Shops in the village 100 5 Tea stall, 2nd hand goods etc. Vendors of the same village 100 8 -10 Vegetables & Clothes etc. Vendors coming to village/day 100 10-12 Clothes, electronics & utensils etc. Source: Field Study conducted in the month of September 2010
3.12 Marketing Infrastructure
Existing Marketing Infrastructure Name of Institution Location Capacity Funded by Owned by Mizoram Multi Commodity Aizawl 15 TLPD GOI AH & Vety Producers co-op union District Milk Union Lunglei 5 TLPD GOI AH & Vety District Milk Union Kolasib 5 TLPD GOI AH & Vety District Milk Union Champai 5 TLPD GOI AH & Vety Animal Feed Plant Aizawl 50 tonnes per day GOI AH & Vety Modern Slaughter House Aizawl 100 animals per day NEC AH & Vety Pork and Poultry Processing Aizawl 50 animals per day NEC MIFCO Plant TLPD: Thousand Litres Per Day
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Construction of 1000MT Multipurpose Cold Storage at Champhai has been completed. The storage has been designed for the storage Potato, Dry Chilly, Passion fruits and Grapes, eggs and Orange. The unit have an installed capacity of 1000 tonnes and will operate at 80%, 85% and 90% capacity during the first, second, third and fourth year onwards respectively. The month of operation has been considered for 9 months (270 days) out of 12 months.
Agriculture Marketing
As per the provision of the Mizoram State Agricultural Produce Marketing (Development & Regulation) Act 2008, all the districts, excluding those under Autonomous district councils have been declared as market areas. The act is being implemented for the benefit of the agricultural communities. There are currently 157 markets across the state, which are directly or indirectly managed by the government. These markets are of great importance as they provide livelihood to thousands of families. Trade & Commerce Department of the State Government have substantially contributed to the state exchequer. The revenue generated from various sources during the current year is Rs. 87.10 lakhs
Mizoram Agricultural Marketing Corporation Ltd.
Mizoram Agricultural Marketing Corporation Ltd (MAMCO) was established by the State Government in the year 1993 under Trade & Commerce Department with the objectives of uplifting the economic welfare of the poor farmers and the traders for establishing proper market channel to ensure the farmers are getting remunerative returns on their produces. In the event of market slugging, this Corporation on behalf of the Government directly purchase surplus produces like ginger, chilies etc. at a remunerative rates to benefit farmers and by way of sanctioning price support subsidy. This corporation plays a vital role in the economy of the State. The Corporation as an implementing agency has constructed 10 nos. of wholesale markets and 87 nos. of Rural Primary Markets all over the state. There is proposal for constructing another 15 Rural Primary Markets which has already been approved by the Central Government and sanction is now awaited.
Haat Place/Block Location Day
SGSY Haat Thingsulthliah / Thingsulthliah Near Market Every day except Sunday
SGSY Haat Phullen/ Phullen Within the village Saturday
SGSY Haat Thanglailung/Phullen Within the village Saturday
SGSY Haat Sesawng/Thingsulthliah Near Hall Saturday
SGSY Haat Lungsen /Lungsen Within the village Every day except Sunday
SGSY Haat Rangte/Lungsen Within the village Saturday
SGSY Haat Phairuangka/Lungsen Within the village Every day except Sunday
SGSY Haat Mualthuam N’/lunglei Within the village Every day except Sunday
SGSY Haat Lunglei Haulawng/Lunglei Within the village Every day except Sunday
SGSY Haat Tlungvel/Thingsulthiliah Within the village Every day except Sunday Source: Field Study conducted in the month of September 2010
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- Along with Vegetables, Orange, Pineapple, Fish, Passion fruits, Limbu Squash, animal meat etc. are sold in the abovementioned haats.
3.13 SHG information
Number Average Average Number of SHGs per of loans taken Grant received per savings per village members per SHG SHG (Rs.) SHG (Rs.) per SHG (Rs.) Thingsulthliah 10 58333 145000 100000 (3 SHG) 60000-100000 (7 Phullen 10 2500-200000 180000 SHG) Thanglailung 10 3000-80000 230000 100000 (1 SHG) Sesawng 10 24605 150000 100000 (2 SHG) Lungsen 10 8274 - 100000 (1 SHG) Rangte 10 12569 - 100000 (3 SHG) Phairuangkai 10 9512 5000 (1 shg) 100000 (2 SHG) Mualthuam N’ 10 7670 - 100000 (3 SHG) Haulawng 10 7266 - 100000 (1) 10000 (1) Tlungvel 10 31521 150000 100000 (6 SHG) Source: Field Study conducted in the month of September 2010
Type of IGA/Micro Trainings Training agency average Average monthly enterprises started received by and place investment income (Rs) by SHGs SHGs per activity (Rs)
Piggery 1. SHG Concept SGSY (BDO) 5000- 1250/pig 2. Book keeping 7500/pig 3. Piggery Poultry SIRD 200- 160/chick related 300/chick 4. Poultry Stick Making related NGO 600-850/q 2520/head Candle Making 5. Accounting DRDA 800/Rs. 3600/head 1000
Grocery Shop (Petty Church 800/Rs. 4000-12000/group trade) Denomination 1000 Source: Field Study conducted in the month of September 2010 Most of the SHG have undergone trainings but most of them are still ignorant about group dynamism though they are active and enthusiastic. They are not familiar to the financial institutions and its functioning as they lack access to banks. Moreover, they do not receive proper guidance for their meaningful growth.
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SHG formation has been predominantly done by BDO office. The group size is generally 10-13 members. Normally the groups’ various activities including the income generating activity are planned by the members. The groups are generally active and vivid. However, the Government and Financial Institutions need to reach out to them in a more frequent and meaningful manner. Lack of documentation and outlook are the weak points observed at the SHG level. Periodical training and handholding are the key support areas envisaged from the project. It also learnt that some SHG availed loan and make repayment properly, but many faced problems in repayment as they were not familiar about the term and condition of loans. When SHGs were formed it was clearly laid down activity for the groups, they, (SHGs) however, did not take activity towards implement, the reason might be unsuitable those activity for them. So, careful consideration should be observed / taken while deciding the activity for the groups. Most of the groups are practicing piggery apart from petty shop (variety store). They have received loans in the range of Rs 145000-150000 and a grant of Rs 100000 each. Many SHGs have received training from BDO, C-DAR, DRDA, SIRD and Veterinary College etc. on account management, management of SHG, piggery and mushroom cultivation etc.
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Chapter 4: Value Chain Analysis
Chapter 3 captured community’s engagement in a long list of activities across land based, 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 5 produce / products viz. Turmeric, Mandarin orange, Pig rearing, Poultry and Stick making (used for incense stick making) for carrying out value chain analysis. All the five shortlisted produce are suitable for both project districts of the state.
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.
4.1 Selection of activities
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. Turmeric, Mandarin Orange, Piglets & Pork, Broiler meat and eggs, Sticks for carrying out value chain analysis. All the five shortlisted produce were found suitable for both the project districts of Aizawl and Lunglei. Following is the flow of key steps performed to select five potential products for conducting value chain analysis
Task performed Key Steps Shortlisted activities
Review of regional Livestock rearing (Piggery, Poultry, implementation plan Dairy, Sheep/Goat), Fish farming, provided by World Bank Incense stick making (used for making Study secondary reports and incensed stick making), Ginger concerned websites cultivation, Silkworm rearing, Bee keeping, Turmeric, Mandarin Orange, Step 1 Passion fruit cultivation, Hartkora Literature cultivation, Aloe Vera plantation, Review Pineapple, Handicrafts, Bamboo plantation, Rubber plantation, Red Oil Palm plantation, Mushroom cultivation, Construction of agriculture link roads, Rainwater harvesting structures, Rural godowns, Irrigation canals, Rural market buildings, Cold storages
Meeting with state nodal Turmeric, Mandarin Orange, Piggery,
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officer Step 2 Poultry (Layer and Broiler), Stick Stakeholder consultation Field work and Making (used for making incensed workshop with line Stakeholder sticks), Ginger cultivation, Bee department officers, bankers consultation in Keeping, Pineapple cultivation, Aloe and NGOs at Aizawl Aizawl Vera cultivation Meeting with govt. officials, SHG members and NGOs at District levels Village visits in both districts Review of secondary reports
Meeting with World Bank Turmeric cultivation Step 3 staff and Project Director, Mandarin Orange Consultation NERLP at New Delhi Piggery with PD, NERLP and World Bank Poultry (Layer and Broiler) staff Stick Making (used for making incensed sticks)
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. Summary of the recommended products and interventions are mentioned in the table below.
4.2 Summary of suggested interventions for the shortlisted activities Produce / Intervention Size of activity suggested Key support to be Convergence Product Suggested provided by the Potential Unit of Funds RoI (%) Project activity required (Rs)
Turmeric Turmeric 1 ha 34380 106.2 Strengthen existing Town level Traders cultivation using SHGs and organize improved practices poor in new SHGs, Weekly markets and Collective Federating SHGs marketing for better into producer Inputs suppliers returns in both the groups districts Progressive farmers Introduce collective action for input Financial institutions sourcing and output marketing Horticulture department Capacity building on improved Marketing agency package of (MAMCO) practices,
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Produce / Intervention Size of activity suggested Key support to be Convergence Product Suggested provided by the Potential Unit of Funds RoI (%) Project activity required (Rs)
Providing easy access to finance through linkages with Financial Institutions or revolving fund support
Market exposure and linkages with remunerative markets, preferably through marketing agencies and traders
Handholding support to SHGs in starting the suggested interventions
Mandarin Cultivation using 1 acre 267020 -- Introduce collective Big Traders Orange better practices and action for input collective marketing sourcing and output Inputs suppliers for better returns in marketing both the districts Progressive farmers Capacity building for improved Financial institutions package of practices Horticulture department Finance linkage MIFCO Market linkages
Market exposure
Handholding support
Piggery Pig rearing for both 6 fatteners 140553 30 Introduce collective Inputs suppliers (piglets, piglet and pork and 2 sows action for input including Government pork) sales in both the sourcing and output and private pig farms districts marketing Financial institutions
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Produce / Intervention Size of activity suggested Key support to be Convergence Product Suggested provided by the Potential Unit of Funds RoI (%) Project activity required (Rs)
Capacity building AH & Vety Department for improved package of Marketing agency practices
Finance linkage
Market linkages
Market exposure to Pig breeding farms and successful entrepreneurs
Handholding support or managing the enterprise
Poultry Poultry (Meat)in in 250 chicks 296363 8 Introduce collective Inputs suppliers (Broiler- both the districts for broiler action for input Meat and sourcing Financial institutions Layer-Eggs) Poultry (Egg) in both the 250 chicks 317613 22 Training and AH & Vety. Department districts for layer Capacity Building programmes for dissemination of better rearing practices
Finance linkage
Market linkages
Handholding support for managing the enterprise
Sticks (used Stick making in 27 quintals 19380 97 Introduce slicing Entrepreneurs for making both the districts machine incensed Bamboo Development sticks) Skill training for Agency making the sticks
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Produce / Intervention Size of activity suggested Key support to be Convergence Product Suggested provided by the Potential Unit of Funds RoI (%) Project activity required (Rs)
Financial institutions Financial linkages Market linkages with Bamboo Development Agency and entrepreneurs
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4.3 Turmeric (Curcuma longa)
1. Background
Turmeric is the dried rhizome of Curcuma longa L., a herbaceous perennial belonging to the family Zingiberaceae and a native of South Asia particularly India. The plant is propagated from rhizomes. The leaves are long, broad, lanceolate and bright green. The flowers are pale yellow and borne on dense spikes. The pseudostems are shorter than leaves. It is an erect, perennial herb grown as an annual crop. The rhizomes are ready for harvesting in about 7 to 9 months after planting. Turmeric can be grown as a rainfed crop depending on location. It comes up well under sparse shade also and can be grown as an intercrop.
Global scenario
India is the largest producer, consumer and exporter of turmeric in the world. Other major producers are Thailand, other Southeast Asian countries, Central and Latin America and Taiwan. Turmeric is also produced in the Caribbean and Latin America: Jamaica, Haiti, Costa Rica, Peru, and Brazil. It supplies around 20,000 tonnes each year. Turmeric enters the international market in the form of dried whole rhizomes or as ground rhizomes.
The global production of turmeric is around 11 lakh tonnes per annum. India dominates the world production scenario contributing 78 % followed by China (8%), Myanmar (4%) and Nigeria and Bangladesh together contributing to 6% of the global production.
Percentage Share of Turmeric in Global Production Nigeria Bangladesh Others 3% 3% 4% Myanmar 4% China 8%
India 78%
India China Myanmar Nigeria Bangladesh Others
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India is the global leader in value added products of turmeric and exports. Other major exporters are Thailand, other Southeast Asian countries, Central and Latin America and Taiwan. United Arab Emirates (UAE) is the major importer of turmeric from India accounting for 18% of the total exports followed by United States of America (USA) with 8%. The other leading importers are Bangladesh, Japan, Sri Lanka, United Kingdom, Malaysia, South Africa, Netherland and Saudi Arabia. All these countries together account for 75% of the world imports and Asian countries are the main suppliers to the entire world. The remaining 25% is met by Europe, North America and Central and Latin American countries. United States of America imports 97% of its turmeric requirement from India and the remaining portion from the Islands of the Pacific and Thailand.
Import
Major importers are the Middle East and North African countries, Iran, Japan and Sri Lanka. These importing countries represent 75% of the turmeric world trade, and are mostly supplied by the Asian producing countries. India exports Turmeric to other countries in a range of 5‐6% of its total production since 1995 ‐2005. Out of the production in India, 90% is consumed locally and the rest is exported. Still India accounts 60% of the world turmeric exports. Occasional imports of Turmeric takes place in India with meager amount depending upon domestic production level of it. Latest data reveals that 1313 MT, 3005 MT & 1620 MT imported in during 2002‐03, 2003‐04 and 2004‐05 years respectively. As per Spices Boards of India, 4025 MT of Turmeric was imported in 2005‐06.
Technical feasibility
Geographical condition and topography is conducive for large-scale enhanced production of turmeric in the region. Due to gregarious flowering of bamboo and to provide incentive to the farmer’s large scale cultivation of turmeric has been taken up in Mizoram state. As turmeric is a short gestation crop and utilized in dry/powdered form, therefore it is easy for transportation even from remote areas and there is vast scope for the poor families to involve in production and buyers to tap this market. Farmers have been involved in producing practices of turmeric since more than 3 decades further approach for the best package of practice can enhance productivity.
The Agro climatic condition of Mizoram is ideal for cultivation of turmeric. The quality, colour and flavour of turmeric produced in Mizoram are one of the best in the country. Though Turmeric produced in Mizoram has great demand in the neighbouring state it has failed to tap the economic potential due to low productivity and cultivation is confined to small areas only. As small cottage industries are on the increase where drying, processing and grinding of turmeric can be done, there is tremendous scope in increasing the area under Turmeric.
Most of the families in Aizawl and Lunglei district more or less earn their livelihood by production and trading of turmeric. Turmeric is available in plenty and farmers have been cultivating it in large scale in Lungsen, Rangte and Haulawng area of Lunglei district and Sesawng, Tlungvel and Thingsulthliah area of Aizawl district.
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Market feasibility
The marketing of turmeric takes place primarily in unregulated markets called ‘haats’, or weekly bazaars. Traders come from Tlabung to purchase turmeric at wholesale prices in haats and even at the farm-gates of cultivators. Huge demand for produce in Bangladesh market has been found and traders from these markets directly procure from the town traders located in Tlabung.
Economic feasibility
An investment of Rs. 32,400 would be required for cultivating turmeric in 1 ha with a Return on Investment of 119.5 %.
2. Production clusters
Indian turmeric is considered the best in the world market because of its high curcumin content. In India, Andhra Pradesh followed by Tamil Nadu, Orissa, West Bengal and Assam takes major share in turmeric cultivation.
Andhra Pradesh is called as turmeric bowl of India as it has highest share of 40per cent in total India’s turmeric area followed by Tamil Nadu, Orissa, Assam and West Bengal each accounting for 15per cent, 14per cent, 7per cent and 7per cent, respectively.
Turmeric is grown all across the state of Mizoram. Both the districts of Aizawl and Lunglei grow turmeric with the most of the production coming from the district of Aizawl. In Mizoram it is grown in plenty in many parts of Aizawl and Lunglei districts.
3. Major usage and by products
It is used in diversified forms as a condiment, flavouring and colouring agent and as a principal ingredient in Indian culinary as curry powder. It has anti cancer and anti viral activities and hence finds use in the drug industry and cosmetic industry.
'Kum-kum', popular with every house wife, is also a by-product of turmeric. It finds a place in offerings on religious and ceremonial occasions. A type of starch is also being extracted from a particular type of turmeric. The increasing demand for natural products as food additives makes turmeric as ideal produce as a food colourant. Turmeric (Curcuma longa) is used as spice, dye and in cosmetic industry. Turmeric is mainly used as spice in Indian foods. It is used in diversified forms as a condiment, flavouring and colouring agent and as a principal ingredient in Indian culinary as curry powder. It is used in a wide variety of foods of the cuisines of Southern Asia but locally it also applies as an antiseptic for skin abrasions and cuts. Turmeric is an important spice among the rice-eating peoples of India, South East Asia and Indonesia. Its chief use is in the manufacture of curry powders. It is also used as an adulterant of mustard and a substitute for it and forms one of the ingredients of many cattle condiments. Turmeric is also used as a dye in textile industry. It has anti cancer and anti viral activities and hence finds use in the
MART, Noida 51 Livelihood based Agri Business and Market Study in Mizoram drug industry and cosmetic industry. 'Kum-kum', popular with every house wife, is also a by-product of turmeric.
4. Value chain map of turmeric
Retailers of powdered turmeric
in Aizawl
Bangladesh Town level Rs. 8-9 / kg Trader processors
Rs. 6-7 / kg Tlabung Trader Village level processors
Rs. 3-5/kg Producer
5. Stakeholders
Producer / Farmers
Villagers are involved in turmeric cultivation since last 3 decades. Turmeric basically grown as mixed crop with paddy, maize, pumpkins, yams etc. The villagers in the study area grow only desi variety of turmeric. Harvesting period for turmeric is during December to January. But sometime due to lack of competitive remuneration they do not harvest their crop at harvesting season and wait for good price recovery. Turmeric grown in village is sold either in haat or traders coming to villages from Tlabung. Women and men both play a role in selling it in local haats or to traders. The selling happens in per kg system. The selling price turmeric is Rs. 6-7/kg. Traders took produce from door steps and direct cash is paid for the product. No value addition has been practiced in the form of drying, powdering etc in study villages.
Input sourcing and suppliers
The main inputs required for turmeric cultivation are seeds, fertilizer, pesticides/weedicides, and agri implements. The suppliers of these inputs are located at block, sub division and district level. Reiek Multi farming Society, Reiek is one of the pioneer societies working on turmeric. Mr. Biakmawia, President of
MART, Noida 52 Livelihood based Agri Business and Market Study in Mizoram the society manages the operations of the society. One of the prominent convergence points is availability of the turmeric seeds to farmers.
Village level trader
They are mostly commission agents/supplier of town level traders. Sometime village trader is the link between producer and town trader in the marketing channel of turmeric. Village trader adds value in turmeric and sells to town traders in higher price. Town level traders deploy these agents to contact producers to harvest the produce on a particular date, so that fruits could be aggregated in a common point. No grading system has been practiced by village traders but he also demand for a minimum quality standard of produce.
Wholesalers / Town level traders
The entire turmeric is procured by Tlabung traders. Tlabung is the border of India and Bangladesh. These traders directly or through any agent sell their produce in Bangladesh and Myanmar market in higher price. Bangladesh and Myanmar traders also procure directly from these traders. They procure the produce through agents/supplier from villages. When they sell to traders coming from regional market, they act as agent for them.
Transporters
Local transportation is done through 4-9 tonne capacity trucks as per the terrain. On an average a cost of Rs. 2 per kg has to be incurred in transporting green turmeric from nearby villages (in and around 20 kms) to a common point at Seling in Thingsulthliah block. From Baka market near to Silchar, turmeric goes to Siliguri and on an average a cost of Rs. 4 per kg has to be incurred to transport it
6. Gaps and Constraints
The major gaps and constraints facing turmeric include lack of value addition at farm level, Lack of direct marketing channel, lack of transportation facility to access Lunglei and Aizawl market and lack of group activity for aggregation or achieving economies of scale at the village level. The following table brings our a comprehensive analysis
Factor Constraints faced by marginal and Strategic action points for project small farmers Input sourcing Often low quality of inputs (seeds, List out input suppliers at block, sub fertilizers, pesticides/weedicides) division and district level (Aizawl result in low productivity. and Lunglei) and establish tie ups Hoarding by local traders and high with them for timely and quality
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Factor Constraints faced by marginal and Strategic action points for project small farmers rates of farm inputs procurement. Farmers travel to Aizawl and Lunglei to Partnerships with renowned Multi procure inputs which adds to the Farming Societies can be developed operational costs. to ensure quality inputs. Organize farmers to procure inputs collectively to negotiate better prices and reduce overhead costs. Farmers can procure inputs in bulk well in advance of sowing season. Production Land in some places is not suitable for Mandarin cultivation should be practices and mandarin cultivation due to low soil promoted after suitable technical technology used fertility. assessment of the area with support Lack of irrigation infrastructure affects of agriculture department. productivity. Regular training and exposure visits Farmers don’t upgrade their skills and to best practitioners in the local area knowledge regularly resulting in low can help poor farmers. yields. Linkage with local banks and government schemes such as SGSY can help famers in accessing loan to purchase productive assets Access to Availability of timely and right amount Farmers need to be organized in finance of credit is an issue. Bank loan requires SHGs and linked with banks a lot of paper work and most farmers’ particularly Mizoram Rural Bank to don’t have proper papers for their ensure financial inclusion. They can land. be engaged to develop loan products for mandarin orange cultivation. Market access Farmers sell individually to the Farmers can take up turmeric retailer/wholesaler resulting in higher cultivation activity individually, overhead marketing costs however, souring of inputs and There is low affinity among farmers for marketing can be planned collective action for sourcing of inputs collectively. and sale of green turmeric resulting in Collectivizing farmers to sell higher operating costs. collectively and directly to higher Blockage of roads leads to increase in order markets at sub division towns input costs and great difficulty in and district markets (Aizawl and accessing remunerative markets. Lunglei) can be introduced for better price realization Development of local market system along with basic infrastructure will help farmers to create robust local market and access remunerative markets.
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7. Proposed Intervention
Turmeric cultivation using improved practices and Collective marketing for better returns in both the districts
8. Implementation plan to carry intervention
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level Village / Cluster Identify and select right villages/clusters in both project districts for selection initiating turmeric cultivation using best practices. Social mobilization Sensitize turmeric farmers on potential increase in income by using best and institution cultivation practices building Share the intervention plan, cost benefit analysis, and assess community interest level to take up the activity List out members separately who are already doing the activity and want to either expand or strengthen the activity. Identify the willing members/groups to start turmeric cultivation. Initially only a limited number of groups should be encouraged to start the activity. Based on the results more members can be brought in the network. Carry out discussions with group members to draw consensus on roles and responsibilities of members and group leaders to take up the activity. Preparation of Prepare a proper business plan for ‘turmeric cultivation and collective business plan marketing’ in consultation with the community. VCA can be referred here Capacity building Organize Leadership training for group members–functions and responsibility to interact with external players. Organize Training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis) for group members Organize Technical training on better practices in convergence with Horticulture Department, organize exposure visits to multi commodity cooperative societies (dealing in turmeric) located in Aizawl Phase II – Establish backward and forward linkages Backward linkages Handhold farmers to procure inputs in bulk to reduce operational costs Share the list of major inputs suppliers for ensuring quality of inputs and its timely availability Establish finance support for turmeric cultivation on a unit cost basis Production Implementation of best practices with the handholding support of the project team 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 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 SHG as group shows willingness to start / expand the activity Build System for collaborations Monitoring and Set up regular follow up and monitoring system to evaluate units from time evaluation to time to finds out gaps, take corrective steps and ensure delivery of appropriate extension services in convergence with Horticulture Department.
9. Economics of the intervention
Assumptions
1. Minimum sale rate of green turmeric Rs. 3/- per Kg. 2. Economics of Turmeric Cultivation in 1hectare area 3. Interest rate @ 12% for 1 year
Cost structure
A. Input Cost
S.N. Particulars Quantity in q Rate Rs. / q Amount (Rs.) 1 Turmeric seed rhizomes 20 600 12000 2 Organic Manure 8 1200 9600 3 Tools & Implements lump sum 500 4 Transportation of seed rhizomes, organic lump sum 400 5 Sub Total (A) 22500
B. Land Preparation and Intercultural Operation
S N Particulars Quantity in Rate per Amount man days man-day (Rs.) 1 Jungle clearance 15 132 1980 2 Burning & removal of debris 5 132 660 3 Layout 5 132 660 4 Terracing across the slope 5 132 660 5 Pulverization of soil 10 132 1320
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S N Particulars Quantity in Rate per Amount man days man-day (Rs.) 6 Mixing of organic manure & soil 5 132 660 7 Furrowing 5 132 660 8 Cutting of seed rhizomes & sowing 10 132 1320 9 First weeding & earthing up (May-June) 10 132 1320 10 Second weeding & earthing up (July-Aug) 10 132 1320 11 Third weeding & earthing up (Oct-Nov) 10 132 1320 12 Sub Total (B) 11880 13 TOTAL (A+B) 34380 14 Interest @ 12% for 1 year 4125.6 15 TOTAL EXPENDITURE 38505.6
C. Income and Profits
S.N. Particulars Quantity in tons Rate (Rs. / ton) Amount (Rs.) 1 Sale of turmeric 25 3000 75000 2 Total (C) 75000 3 Profits after interest 36494.4 4 RoI 106.2
Processing Possibility
While green turmeric is dried and processed into powder, village level processing units caters to the inherent village level requirements. There are no instances of these units being able to market the powdered turmeric to traders or retailers. Moreover, such processing units are surviving because of allied activities run in the set up e.g. while many turmeric processors have a rice hauler, some have wood cutting machines to run their set up. Small Processors at the town (Aizawl) level ground the dried turmeric and sell it to the retailers located in the town itself. There is negligible further movement of the ground turmeric from the state. In such a scenario village level units can be set up for catering to village level demand but will have negligible enterprise possibility at least in the current paradigm.
Sensitivity Analysis
S N Parameters Revenue Expenses Profits before interest (Rs) (Rs) (Rs) 1 Expenses go up by 10% 75000 37818 37182 2 Expenses fall by 10% 75000 30942 44058 3 Production goes up by 10% 82500 34380 48120 4 Production falls by 10% 67500 34380 33120
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4.4 Mandarin Orange (Citrus reticulata)
1. Background
Of all the different species of citrus found in the state, Mandarin Orange is the most popular one. First introduced to Mizoram during 1935-40 at a village called Sairang in Aizawl possibly from Cachar Hills through the river Tlawng by small commercial boats, which were important means of transport between Mizoram and the outside world as road was still in its initial state during those days. Then on its cultivation spread to different parts of the state, the first harvest on a commercial scale was reportedly achieved in early 1950s in the areas around the river Tlawng in the north western part of the state. Since then mandarin orange has occupied a very important place in the livelihood of the most of the farmers in the Citrus growing belts.
Mandarin Orange cultivated in Mizoram is commonly known as ‘Khasi Mandarin’ by Indian Scientists. In earlier years, maximum plantation areas are in the western part of Mizoram. Mandarin orange used to be a major fruit crop in Mizoram, covering large areas of plantation. Mizoram oranges used to be marketed as far as Bangladesh in addition to Indian market. But due to citrus die-back disease, large area have been destroyed and declined which is called ‘Sertam’ in Mizo.
Agro-climatic conditions in Mizoram are found to be very suitable for growing a wide range of horticulture crops covering fruits, vegetables, ornamental crops, plantation and spice crops. Among fruits, mandarin orange is the dominant fruit crop, covering a total area of 5,395 ha with a total production of 34,366 MT during 2006-07 and an area of 6,395 ha with a production of 41,567 MT in 2007-08.
Table Area, Production and Yield rate of Principal Horticulture crops in Mizoram
Source: Statistical handbook 2008-2009, Mizoram
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Global Scenario
Global production of oranges and mandarins has been increasing at a steady pace - 1.9 percent on an annual average during the period 2001-2007 – and amounted to 90.4 mn tonnes in 2007. The major producers include Brazil, Russia, United States, Spain and Mexico. India was the sixth largest producer of oranges and mandarins producing 3.9 mn tonnes. Global exports of mandarin aggregated 3.4 mn tonnes in 2006, registering an annual average growth of 7.5 percent during 2001-2006. Spain, with a share of 44.7 percent, was the largest exporter of mandarin in 2006, followed by China (10.0 percent share), Turkey (8.3 percent share), Morocco (6.6 percent share) and Pakistan (5.7 percent share).
Market feasibility
While India is the sixth largest producer of citrus fruits accounting for 5 per cent global production, it has no place in world citrus trade which is due to its sticking to its old varieties with little introduction of new varieties. All the orange selling points in Mizoram are small market stalls or road side markets that sell local oranges by fruit number and not by weight.
As there never was a problem in marketing orange fruits and still no market problem even today, citrus industry in India and even in Mizoram has a very good prospect. Citrus plantation can be expanded at its maximum extent where Mizo farmers can adopt the technology of its cultivation.
Economic feasibility
An investment of Rs. 2,67,020 would be required for cultivating mandarin orange in 1 acre. While the fruiting will start from 4th year, expected net income accrual has been calculated in the economics section.
2. Production clusters
Today, as technology improves, this citrus decline problem is gradually prevented while remedial operations and measures being taken. Recently, Israel technology is being adopted in citrus plantation right from production of quality planting materials to plantation including installation and provision of drip irrigation to citrus plants; a pilot project is being executed at Rulpuihlim village. With the improved technology applied, citrus plants are expected to start fruiting within three years from its plantation in the orchard.
Cultivation of orange on commercial scale in a cluster has been promoted by the Department of Horticulture under the Indo-Israel project wherein 2600 families were to be converged across 6 blocks in the state. The implementing agency was the Block Development Society formed within the block.
3. Major usage and by products
Mandarin Orange is a good source of Vitamin C and flavanoids. It is saturated fat- free, sodium- free, cholesterol- free, high fibre and fat free. Japanese scientists have shown that eating mandarin oranges may decrease the risks of various diseases, including liver cancer, arteriosclerosis and insulin resistance. Mandarin orange juice is used in Vitamin C pills.
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Mandarin Orange essential oil is used in perfumes, soaps and as an anti-spasmodic, carminative, digestive, diurectic, sedative, stimulant (digestive and lymphatic) and tonic agent. It is soothing to the nervous system and has a tonic effect on the digestive system, while helping flatulence, diarrhoea and constipation. I t also useful for the skin and is used to help with stretchmarks, increasing circulation and reducing fluid retention. It is wonderfully soothing & calming oil and is gentle enough to use on babies and small children. Its aroma clears the mind and can help eliminate emotional confusion. Aromatherapits also consider it to be very comforting, soothing and warming. Mandarin oranges of all kinds are primarily eaten out-of-hand, or the sections are utilized in fruit salads, gelatins, puddings, or on cakes. Very small types are canned in syrup. The essential oil extracted from the peel is employed commercially in flavoring hard candy, gelatins, ice cream, chewing gum, and bakery goods. Mandarin essential oil paste is a standard flavouring for carbonated beverages. The essential oil, with terpenes and sesquiterpenes removed, is utilized in liqueurs. Petitgrain mandarin oil, distilled from the leaves, twigs and unripe fruits, has the same food applications. Tangerine oil is not suitable for flavoring purposes.
4. Value chain map
Retailers (Haats) Rs. 5-6 / piece
Trader / Commission agents (Silchar, Rs. 2-3 / piece; Purchases
Aizawl, Seling) tree from orchard owners
Orchard Owner / Producer Rs 1-2 / piece
5. Stakeholders
Wholesalers
Traders from Aizawl, Sichar, Seling, Cachar deal with mandarin orange. There exists a mechanism wherein certain traders buy the orange trees during the pre-harvest season. Based on the eye-estimation of the no. of fruits trader buys them at a lump-sum price (which often comes to Rs. 2 per fruit). They give advance to the tree owner.
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Retailers
Aizawl based traders aggregate the produce, pack it and sell it to the next trader located outside the state. They also work as commission agents of the big traders located in Karimganj. Retailing function is carried in two distinct ways wherein either the local entrepreneurs purchase it from the wholesalers and sell it at the town level or the orchard owners/local entrepreneurs who sell it in the at the local haats.
Processors
Industry Dept., Government of Mizoram and Ministry of Food Processing & Industry has set up MIFCO for the processing and value addition of fruits e.g. orange, pineapple and ginger etc. The main objective of this society is to convert these fruits into value added product e.g., juice and concentrate and sell it in the domestic and international markets. At present this society has around 90 members. MIFCO is presently running five processing units in and around Aizawl in Mizoram.
Orange processing is done at food juice concentrate plant at Chhingchhip which has been established in June 2006. This plant runs 8 hrs per day for 3 months only because of less supply of raw material. The installed capacity of the plant is 1400 MT per annum but due to irregular and less supply of raw fruits, current utilization is only 10% i.e. the plant produces 140 MT per annum only. The plant has been set up with funding from MOFPI & GoM, Industry Dept. At present plant is running at no profit no loss.
Orange is procured through collection centre established near to the respective plants. Sorting and grading facility is also available and done at collection centre and categorization done in classes A, B, & C. Category A orange, after packaging is exported to domestic and international market, category B orange is sold at local market for direct consumption and category C orange is largely used for the processing and converted into juice concentrate.
Around 40-50% orange is being processed for the juice concentrator and rest is sold for direct consumption. From 1 kg of raw material (Orange), up to 400ml juice concentrates (40%) can be processed. The shelf life of the product is 5-6 months in dry place. MIFCO sells this juice concentrate in 700 ml bottle size @ Rs 40/- per bottle where the costing of this bottle is Rs 30/- including all cost e.g., processing, packaging and marketing. At present juice concentrate product is sold locally and roadmap for exports to other state is under planning stage. Major Constraints faced by MIFCO include lack of backward linkages to procure raw fruits and low productivity due to lack of better package of practice among farmers.
Transporters
Transport of raw orange from the village generally happens when the orchard owner strikes a deal with the trader. Around 350 oranges can be packaged in a standard basket whose transportation cost via truck is around Rs. 35 per basket for a distance of ~ 150-200 kms. The cost incidence is borne by the trader purchasing the oranges.
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6. Gaps and Constraints
After growing orange for many years, the farmers in Mizoram are in a state of crisis with many of their plantations affected by citrus decline which reduced fruit yield drastically. The traditional method growing orange is to plant them from seed. This resulted in array of unstable fruit quality and yield. This also affects the life span of the trees.
Orchard nutrition using fertilizers are hardly existent due to lack of funds for this. Using compost is also limited due to shortage of local ability to produce it and a necessity to import it from long distance. It is evident that many trees suffer from mal nutrition.
Factor Constraints faced by marginal and Strategic action points for project small farmers Input sourcing Often quality of the inputs available in List out input suppliers at Aizawl and the open market is not good that Lunglei and establish tie ups with results in low productivity. them for timely and quality The state does not have its own supply procurement. of fertilizers and pesticides. This Organize farmers to procure inputs promotes hoarding by local traders and collectively to negotiate better prices high prevalent rates of farm inputs. and reduce overhead costs. Farmers Farmers travel to Aizawl to procure can procure inputs in bulk well in inputs which adds to the operational advance of sowing season. costs. Production Land in some places is not suitable for Mandarin cultivation should be practices and mandarin cultivation due to low soil promoted after suitable technical technology used fertility. assessment of the area with support Both lack of irrigation infrastructure of agriculture department. and negligible up-gradation of farmers Regular training and exposure visits skills and knowledge results in low to best practitioners in the local area yields. can help poor farmers acquire best practices. Linkage with local banks and government schemes such as SGSY can help famers in accessing loan to purchase productive assets Access to Availability of timely and right amount Farmers need to be organized in finance of credit is an issue. Bank loan requires SHGs and linked with banks a lot of paper work and most farmers’ particularly Mizoram Rural Bank to don’t have proper papers for their ensure financial inclusion. They can land. be engaged to develop loan products for mandarin orange cultivation. Market access Farmers sell individually to the Farmers can take up mandarin retailer/wholesaler resulting in higher cultivation activity individually, overhead marketing costs however, souring of inputs and There is low affinity among farmers for marketing can be planned
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Factor Constraints faced by marginal and Strategic action points for project small farmers collective action for sourcing of inputs collectively. and sale of mandarin orange resulting Scope for collectivizing farmers to in higher operating costs. sell collectively and directly to higher Blockage of roads leads to increase in order markets at sub division towns input costs and great difficulty in and Aizawl for better price accessing remunerative markets. realization. Development of local market system along with basic infrastructure will help farmers to create robust local market and access remunerative markets.
7. Proposed Intervention
Cultivation of orange using best practices and introducing collective marketing
8. Implementation Plan to carry the intervention
Key steps to be Activities to be performed by project followed
Phase I – Preparedness at the community level
Village / Cluster Identify and select right villages/clusters in both project districts for initiating selection mandarin orange cultivation using best practices.
Social mobilization Sensitize mandarin orange farmers on potential increase in income by using and institution best cultivation practices building Share the intervention plan, cost benefit analysis, and assess community interest level to take up the activity List out members separately who are already doing the activity and want to either expand or strengthen the activity. Identify the willing members/groups to start mandarin orange cultivation. Initially only a limited number of groups should be encouraged to start the activity. Based on the results more members can be brought in the network. Carry out discussions with group members to draw consensus on roles and responsibilities of members and group leaders to take up the activity.
Preparation of Prepare a proper business plan for ‘mandarin orange cultivation and collective business plan marketing’ in consultation with the community. VCA can be referred here
Capacity building Organize Leadership training for group members–functions and responsibility to interact with external players. Organize Training in business and marketing skills (costing, pricing,
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accounting, sales and marketing, negotiation, market analysis) for group members Organize Technical training on better practices in convergence with Horticulture Department
Phase II – Establish backward and forward linkages
Backward linkages Handhold farmers to procure inputs in bulk to reduce operational costs Share the list of major inputs suppliers for ensuring quality of inputs and its timely availability Establish finance support for mandarin orange cultivation on a unit cost basis
Production Implementation of best practices with the handholding support of the project team Clarity of roles, specialization and continuous skill improvement Bring quality control in production to achieve efficiency, higher productivity at lower costs Better record keeping and financial management MIS development
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 SHG as a group shows willingness to start / expand the activity Build System for collaborations
Monitoring and Set up regular follow up and monitoring system to evaluate units from time to evaluation time to finds out gaps, take corrective steps and ensure delivery of appropriate extension services in convergence with Horticulture Department.
a. Action Plan for Collective Marketing of Orange fruits
Most farmers produce small quantities for sale but find that the local trader is only prepared to pay low prices for their goods compared with the wholesale price. As individual farmers they have little bargaining power with traders and must often except almost any price offered. The only way small-scale farmers can sell their produce at higher market is to co-operate with each other to form an association or group and are able to offer for sale their combined output and take steps to make sure that it is of a standard quality, they will be able to market their goods as successfully as village level traders. SHGs present in the village can utilize the group money for aggregation of produce and sell at right price to higher traders.
The facilitating agencies should understand that the process of establishing collective marketing which market produce of farmers collectively. Educating farmers to understand how markets work, how they can earn more money by collective action and how they can put these ideas into practice may require the
MART, Noida 64 Livelihood based Agri Business and Market Study in Mizoram organization of many group meetings, training sessions, marketing studies and opinion surveys etc. Step by step approach for collective marketing is given below.
S N Activities Selection of villages, estimating resource availability, Refer Micro Plan, Baseline, Value Chain 1 A Report B Scale assessment at village level C Selection of villages for intervention D Understanding market dynamics for Mandarin Orange 2 Sharing the concept with NGO 3 A Sharing and orientation of the concept and fund flow to SHGs Exposure visit of VC President, Secretary to successful collective marketing interventions B undertaken by multi commodity societies in Aizawl 4 Village level awareness meeting with the VC President, Secretary and villagers 5 A Identification of potential/interested SHG B Selection of leaders from selected groups C Proper training to SHG members and leaders Exposure/training on technical aspects (Proper handling of fruits, grading, packing, record D keeping) 6 A Market watch and community leaders' negotiation with traders and other market players B Liaison and bargaining with traders by the SHGs and proposed marketing cadre C Listing of collection of produce and record keeping D Finalizing selling modalities E Making arrangements for gunny bags, packaging, transportation and labour (if required) F Selling price fixation including mode of payment G Finalizing date of transportation H Making arrangements for lifting of produce from the village 9 A Finalizing procurement modalities B Fixation of minimum rate for buying within groups and from outside C Ensuring procurement of committed quantity by the participating groups 10 Account keeping including miscellaneous expenses - transparency meeting 11 Selling to traders / processors in the state 12 Receipt and disbursement of payment to SHG 13 Calculation of profit and disbursement of payment to contributing SHG members 14 Ensuring timely repayment of loan by SHGS to project / financial institutions (if applicable) 15 Planning for other produce
Since the product is perishable in nature and it has to be sold in the same day of harvesting, trader selection and negotiation should be done before harvesting.
9. Economics of the intervention
Economics for 1 acre of plantation with a spacing of 4m x 4m
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250 budded orange trees Payback period of 10 years Payment starts from 4th year Expected yield in nos. of fruits up to 4th year @ 200 fruits per tree Expected returns from 4th year @ Rs. 2 fruit Expected yield in nos. of fruits from 5th year @ 1000 fruits per tree Expected returns from 5th year @ Rs. 2 per fruit Around 350 oranges can be packaged in the basket, transportation cost is Rs. 35 per basket
I. Input Cost Items Unit Quantity Rate (Rs.) Amount (Rs.) 1 Budded planting materials of orange Nos. 250 120 30000 2 Organic manures like Farm Yard Manure / Kg. 3750 12 45000 Vermicompost @ 15 kg per plant 3 Spade for pit digging Nos. 2 100 200 4 Secateur for training and pruning of the Nos. 2 359 718 plants 5 NPK in the form of chemical fertilizers for Kg. 50 20 1000 growth booster @ 200 gms per plant 6 Hand hoe for intercultural operations Nos. 2 30 60 7 Dao for Jungle clearance Nos. 2 100 200 8 Plant Protection materials lump sum 2000 9 Sprayer Nos. 1 1600 1600 10 Construction of water storage tank lump sum 100000 11 Cost of drip irrigation materials and Acre 1 44042 44042 installation 12 Transportation of inputs like planting lump sum 12500 material manures etc. TOTAL of I 237320
II. Labour Cost Item Unit Quantity Rate Amount (Rs.) (Rs.) 1 Jungle clearance Person 20 132 2640 2 Burning and removal of debris Person 10 132 1320 3 Layout Person 5 132 660 4 Pit digging Person 50 132 6600 5 Pit filling with FYM, top soil etc. Person 20 132 2640 6 Planting of planting material at site Person 10 132 1320 7 Application of PP, Chemicals, Person 10 132 1320 Fertilizers, Manures etc. 8 Intercultural Operations like weeding Person 100 132 13200 for 3 - 4 times 9 TOTAL of II 29700
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10 GRAND TOTAL (I+II) 267020 11 TOTAL CULTIVATION COST 267020 12 Total Interest @ 12% for 10 years 320424 13 Total Sum payable in 10 years 587444 14 Cumulated interest for 3 years 961272 15 Yearly Interest to be paid from 4th year 45774 till 10th year 16 Yearly principal to be paid from 4th 38145 year till 10th year 17 Equal yearly installment after 4th year 83920 till 10 year
Net Income in 10 years
Expected Gross Net No. of Marketing Net Income Yearly Year Income Income fruits Cost (Rs.) (Rs.) Installment (Rs.) (Rs.) (Rs.) Year 4 50000 100000 5000 95000 83920 11080 Year 5 250000 500000 25000 475000 83920 391080 Year 6 250000 500000 25000 475000 83920 391080 Year 7 250000 500000 25000 475000 83920 391080 Year 8 250000 500000 25000 475000 83920 391080 Year 9 250000 500000 25000 475000 83920 391080 Year 10 250000 500000 25000 475000 83920 391080
Processing Possibility
There exists no precedence of value addition of mandarin orange at the village level. It is sold as a raw fruit. There could be linkages with MIFCO processing unit but long distance and inadequate infrastructure support renders it as a distant possibility.
Sensitivity Analysis
S N Parameters Revenue (Rs) Expenses (Rs) Profits before interest (Rs) 1 Expenses fall by 10% 475000 293722 181278 2 Production goes up by 10% 475000 240318 234682 3 Production falls by 10% 522500 267020 255480 4 Production falls by 10% 427500 267020 160480
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4.5 Piggery
Introduction
Piggery Farming is a popular activity in the state of Mizoram as in the other states of North eastern region. Pig is the most important livestock in the state and plays a major role in the livelihood of the small farmers. Pork is the most preferred meat as the population is predominantly tribal. The rearing of pigs is related to their culture and on an average every household in the state rear pigs. Pig farming is one of the sources of cash income for the subsistence farmers as well as determines family’s purchasing power because of unprofitable “Jhum” cultivation practice. Pigs are still considered scavenging animals and that the underprivileged are involved in pig production.
The pig population of the state was 217,184 of which cross-bred pigs account for 185,246. About 31 per cent of pig population is in Aizawl district alone and about 60 per cent of the meat consumed in the district comes from pig (Anonymous 2002-03).
GLOBAL SCENARIO PIGGERY
The global production and consumption of pork has increased substantially in recent decades. This demand for pork clearly offers opportunities for both U.S. and foreign pork producers to expand international sales. Domestic demand for pork in individual countries is related to market size, supply and prices of competitive meats, per capita income effect on protein demand and pork demand’s vulnerability to currency or economic instability. World pork consumption has increased by 27% from 1997 to 2005, with total global pork consumption for 2005 at over 93 million metric tons (MT).
The world population has increased during the last decades and will increase further during this century. Due to this, and to the increased meat consumption per person, global consumption of meat will rise. During the last 40 years, global pork production increased with a factor 3.5 from 24.7 million ton in 1961 to 86.6 million ton in 2002. The figure below shows the world market demand for meat including pork.
The top 12 pork producing countries for 2005 and their pork tonnage are China, with about 50% of the world pig population, heads the list, followed by E.U.-25 countries of Europe, United States (USA), Brazil and Canada, for the top five pork production positions (FAS/USDA, 2006). While world pork production has increased by 15.1% from 2000 to 2005, the top five countries in percent increase in pork production over this five year period from the list of 12 countries are Brazil (39.3%), Vietnam (27.8%), China (23.2%),
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Russia (17.0%), and Canada (16.8%). During this 5 year period, USA percent increase in pork production was 9.3% while the E.U.-25 increased by only 2.3% (FAS/USDA , 2006). China Pork Production
China is the biggest pork producing country. However, its market is totally domestic oriented. China produced 49.7 MMT in 2005, slightly over 50% of the total world pork production. China’s pork production is estimated to be 52 MMT for 2006, a 4.7% increase from that of 2005 (FAS/USDA, 2006). The per capita consumption for China (33.8 kg) is among the highest in the world, only slightly lower than that of Hong Kong, the EU, and Taiwan, which are countries or regions with higher per capita incomes (Fabiosa et al., 2005).
Despite its massive population, China is almost self-sufficient in pork supplies, and imports account for less than one percent of total pork production. Frozen boneless pork accounts for the major portion of China’s pork imports for high end consumers. The USA is the largest variety pork supplier to China, accounting for 37% of China’s total imports (226,736 MT) during the first 11 months of 2005.
A favourable dollar exchange rate will help the competitiveness of U.S. exports to China (GAIN Report, 2006). China’s swine and pork exports in 2006 are forecasted to increase 16% to 2 million head. China’s swine export markets will not change, with Hong Kong, Japan, North Korea, and Russia as its major exports market. For the first time since 2004, Japan will become China’s second largest pork market (GAIN Report, 2006). Between 1996 and 2005, the compound annual growth rate of the production of pork in China is 5.1% (Boal, et al., 2005). Despite the majority (70%) of Chinese hog production being still small scale or backyard production, larger sized commercial farms have been increasing, thus improving production efficiency. The number of swine slaughtered from commercial farms increased 26% in 2004 over the previous year. This has increased pig production and lowered pork prices in China in 2005-2006.
The limiting factors for Chinese hog production are higher production cost, lack of capital resources, and limited market information. Official market statistic information is normally announced one to two years later. There are no official forecasts for future production. Furthermore, disease and residue control are also challenges. Animal diseases (e.g., FMD) are difficult to monitor and control in China’s widespread, small-scale farming system (GAIN Report, 2006). China must develop pork systems with uniform, high quality genetics, which can be slaughtered and processed in modern pork processing plants if it is going to supply quality, uniform pork. This has already been achieved by the broiler industry in China, but a lack of modern processing plants has limited availability of high quality pork.
Importing Nations
Pacific Rims, Russia, and Mexico are the major pork import countries. Among those, Japan is the biggest pork importer. In 2005, Japan imported a record amount of pork with 1.339 MMT, over 1.2 MMT being generic pork (chilled and frozen combined) and 90 thousand metric ton of prepared and processed pork. There were increased imports from U.S., Chile, Canada, Mexico, Ireland, and Austria with a decrease from Denmark. This record number is in part, due to the tight supply of beef in 2004 (FAS/USDA, 2006).
Japan has the most strict import standard and labeling requirement. New Japanese food import
MART, Noida 69 Livelihood based Agri Business and Market Study in Mizoram standards may require more U.S. testing and could force some U.S. pork producers to change what they feed their hogs. The new rules change maximum residue limits on all food products for 799 feed additives, veterinary drugs and agriculture chemicals, compared to the previous number of 283 substances (Bratton, 2006). Producers may have to stop giving hogs these additives for a longer time before slaughter to meet new limits.
Gaps and Constraints of Pig Rearing
Productive performance
As pig rearing is very popular amongst tribal population, it can play an important role in improving the socio economic status of a sizeable section of the weaker community. Pig farming needs low investment, simple skills and little land. It can also be practiced as a cottage industry. Pig rearing also fits in very well with mixed farming and can also be complementary to intensive crop operation. Pigs are prolific breeders, grow rapidly, mature quickly and can be managed to produce at least two litters in a year. It produces 6-12 piglets at a time. The recommended ratio of boar to sows is 1:10. He piglets attain a live body weight of 70- 80kgs in 6-8 months. Moreover pigs are efficient converter of feed into pork and 65-80% of the pig weight is consumable. Pig farming requires moderate investment and is flexible in the sense that the farmers can always increase the size of the farm with increased profitability. In Mizoram a sow produces an average of 1.8 liters per year with 7.2 pigs from each litter reaching market weight. There is potential for improvement of productive performance by management of Ovulation, Fertilization and effective diagnosis and maintenance of pregnancy.
Location
The more suitable area for pig rearing would be in the vicinity of planted trees. It is favorable in a steep area to facilitate better drainage facility. A good location for a pig farm should meet the basic requirements like road communication and transportation, reliable water supply, well managed underground drainage system. The farm should be planned to give protection from sun and exposure to wind. An east west orientation is usually preferable to minimize exposure to sun.
Housing/Construction of sheds:
Pigs are highly susceptible to climatic stress. The heat regulating ability of new born piglets is very low and as a result mortality increases in pre weaned piglets due to extreme change in weather. Normally the sheds should be constructed according to the number of pigs one plans to rear. Not more than 50 piglets should be housed in a shed and the recommended spacing is 1 in 15sq.ft. The flooring should be done in concrete brick or cement and the wall should be at least 3 feet above the ground level.
Feed and Water requirement:
The feed accounts for about 80% of the cost of raising pigs. Efficient use of feed will ensure profitable pig production. Efficiency of conversion achieved by expensive ration does not guarantee profitability. The important thing which is to be considered is the cost of feed per kg of pork produced. The feeding of
MART, Noida 70 Livelihood based Agri Business and Market Study in Mizoram cheaper rations based on locally available materials may not produce the fastest gain in weight but will reduce the feed cost per kg of carcass weight gained. Therefore it is highly important that economical as well as nutritionally balanced diets are provided during all phases of life cycle. It is important that one should not feed remain of the rice beer, as is generally done by the locals, to pigs as it neither contains protein nor carbohydrates. It is also not good for sows as it may lead to lower productivity. Pigs consume a lot of water and as such one need to have the basic idea of water requirement for pig rearing. The table below illustrates the feed and water requirements for pig rearing as per their maturing age and weight.
Table 1: Feed Requirement:
S. N. Age(in Months) Weight (in kgs) Per day per pig feed (in kgs) 1 2-3 15-27 1.00 2 3-4 27-40 1.50 3 4-5 40-50 4.50 4 5-6 50-60 2.00
Table 2: Water Requirement:
S. N. Maturing Age(in Weeks) Requirement (in lts) 1 8-12 3-5 2 3-18 6 3 19-24 7.5 4 25 8
Marketing
Marketing of piglets and pork is not a problem in Mizoram as pork is the staple food; it is sold throughout the state. Usually it is seen that despite rearing of pigs by majority of the population, demand for pork exceeds the supply. The retail rate of pork is Rs.160 per kg. There seven Government pig breeding farms in Mizoram which may be inadequate to meet the requirements of piglets for establishment of new enterprises. While the piglets are sold at the rate of 125 per kg in the Govt. farms it is available at a lump sum amount of Rs. 2500 -3000 per piglet in the market. However, many private farms have come up all over Mizoram seeing the viability of pig farming in the state.
Assumptions and Technical norms
1 Gestation period : 114 days 2 Weaning age : 1 months / 60 days 3 Successive pregnancy : 30 days after weaning of piglets 4 Average no. of piglets per farrowing (litter size) : 9 piglets per sow 5 Sale price of weaned piglets : Rs. 2000 piglet 6 Mortality up to 2 months : 15% 7 Sale price of empty gunny bags : Rs. 5 per bag
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8 Sale price of manure : Rs. 50 per quintal 9 Cost of feed : Rs. 8 per kg 10 Average body weight of adult sow : 150 kgs 11 Sale price of pork : Rs. 160 kg 12 Cost of insurance : 6.5 % of original cost 13 Productive life : 6 years after sexual maturity 14 No. of farrowing during productive life : 10 nos. per sow 15 Boar service charge : Rs, 500 16 Age of sexual maturity : 11 months 17 Floor space requirement for sow : 72 sq. ft. per sow 18 Floor space requirement for fattener : 18 sq. ft. per fattener
Rearing Process
Farmers reared the pigs in confinement in raised platform constructed with wood and bamboo and in most of the farms the floor space was inadequate against per adult animal. Majority of the farmers’ rear cross-bred pigs and followed artificial insemination practices. The average litter size at birth was 7 while that for weaning was 6. All the farmers followed stall feeding and supplied kitchen waste with certain weeds, after boiling, to their pigs while very few offered concentrate feeds (maximum 1kg per pig). Further, majority of farmers never used any feed supplement like mineral mixture, vitamins etc. They provided feeds twice daily, morning and evening.
With regard to health care majority of the farmers use antibiotic in treating the diseased pigs and follow de-worming using either traditional or allopathic medicine. Farmers vaccinate the pigs against swine fever and treat their piglets against piglet anaemia with iron injection and ectoparasiticide drugs in their farms. Farmers follow cutting of needle teeth, weaning and castration of their piglets in time. Very few farmers pay special attention to the pregnant sows but majority took special care of sows after farrowing. Cleaning of pigsty is done once in a week. Pigs are usually marketed at the age of 1 year or above when they attain body weight of 90 kg or more and the market price of pork was Rs. 160 per kg of live weight at the time of study.
Production and management practices followed by the pig farmers
Housing practices
It was observed that all the pig farmers constructed their pigsty with locally available materials like bamboo and woods, located in road side slope area with a raised platform above 2-3 feet from the ground. The floor space per adult was found to be inadequate (average 12 sq. ft.) in majority (97%) of the farms. The farm equipments included mainly iron vessel (Kerahi) for boiling feeds, empty mustard oil tin (modified form) or cut piece of woods or bamboos, tyres (locally known as Thingphek) as feeding trough. Further it was recorded that supply of water mostly dependent either on rain or nearby streams. Separate water storage facility for pigs and electricity were absent in 84 per cent and 89 per cent of the farms, respectively.
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All pigsties were constructed by using bamboo and wood because these are cheap and easily available as there is abundance of these materials in the jungles. Moreover, it was easy to shift the bamboo or wood housing from one place to another place. The reason for raising the floor above ground level was to prevent entering of reptiles, rats and other small wild predators which are abundant in the nearby jungle. Besides these, almost all farmers said that raising the floor above ground level made cleaning easier and prevented dampening of floor due to rain.
Breeding practices
Breeding is one of the most important aspects for better productivity of the animals. Eight distinct breeding practices followed by the farmers were studied. The majority (92%) farmers were rearing cross- bred pigs in the farms and they (55%) gave first service to the female pigs at the age of 10-12 months. Majority (75%) of the farmers followed artificial insemination practices for breeding and practiced two services to the sow at 12 hrs interval during the second day of heat. A great majority (74%) of the respondents followed the practice of twice farrowing of sow in a year. Only 16 per cent of them in the study area were rearing breeding boars. The average litter size at birth was 7 while that for weaning was 6. Kumar et al (2002) reported that the average litter size at birth was 6-8 and farmers follow the practice of sow farrowing twice in year.
The farmers preferred to rear cross-bred on their farms since in their opinion crossbred pigs have better growth performance, healthier than indigenous one, large litter size, low mortality rate and high back fat thickness. The advantages of adopting artificial insemination were that it is cheap and easily available, they get improved progeny and they save on cost of rearing breeding boars. The farmers preferred Hamshire and Saddle Back breed for crossing. Liquid semen is used for artificial insemination and farmers pay Rs. 100 per insemination whereas they have to pay Rs. 500 per insemination by breeding bull.
Feeding practices
It is one of the most important aspects of pig farming. The performance of the pigs mostly depends on how the farmers are managing the feeding in the farm. Stall feeding was followed by almost all of the farmers and this is unlike the scavenging system commonly seen in other parts of the country. Half (50%) of the farmers feed kitchen waste to the pigs with small quantity of concentrates (maximum one kg) in view of high cost of feeds. Kitchen waste is mixed with locally available weeds e.g. Japan-hlo (Mikania micrantha), Mau tak (Melocanna baccifera), Vaivakawn par (Tithonia diversifolia), Anhling (Solanum nigrum) etc and boiled before providing to the pigs. Farmers mentioned that they boiled the feeds before giving to pigs to kill harm full insects or parasites. It was seen that almost all the villages, there was small market at least for pork (locally known as Vawksa) marketing. Majority of the farmers (87%) market their pigs at the age of 1 year or above when they reached the body weight of 90 kg or above. At this age back fat content is generally high and consumers preferred pork with high back fat thickness. The pricing system is based on measurement of girth, body length and general appearance of the pig. There is preference for black coloured pigs in the market.
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The study revealed certain interesting production and management practices followed by the farmers of Aizawl and Lunglei district which are as following Pigs were reared in stalls with raised floor (Platform) constructed with bamboo and wood. Raised floors were practiced to protect against rainwater and reptiles. The space provided to the adult pigs was inadequate. The farmers preferred to rear cross-bred animals for better growth performance and bigger litter size and have adopted artificial insemination as cost involved was less and results are good in terms of improved progeny. Kitchen waste with small quantity of concentrate mixture (maximum 1 kg) and locally available weeds were used to feed the pigs the practice reduces cost of feeding. Feed supplement like mineral mixture, vitamins were not used due to high cost. Vaccination and deworming were followed to protect the pigs from swine fever and internal parasite, respectively. Iron injection and ectoparasiticides were not used by the farmers and might be the probable causes of diseases like skin diseases and piglet anaemia. Cutting of needle teeth, castration and weaning were the most common practices followed by the farmers. Cleaning was not done regularly by the farmers leading to various diseases like diarrhoea, skin diseases etc. Special care was not taken for the pregnant sows whereas sow after farrowing received special attention. Pigs were marketed at the age of 1 year or more when they reached body weight of 90 kg or more due to consumers’ preference to the pork with high back fat thickness.
Value Chain Map of Pig
Customer
170/kg
Butcher 160/kg 160/kg
160/kg
Town Trader Village Trader Village Haat
Rs. 150/kg Rs 150/kg Rs. 150/kg
Pig Rearer
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Stakeholders
PIGFED
Pig Farmers Primary Cooperative Societies are formed under the Cooperation Departments and are supposed to be facilitated by PIGFED. Officially there are 145 societies mostly confined to Aizawl, Kolasib, Champai and Serchchip. There are a few in Lunglei district as well.
PIGFED’s mandate is to provide better quality of piglets, feed, finance and training on best rearing practices. On all the counts, admittedly PIGFED has not been able to perform as expected primarily due to financial inadequacies and skeleton manpower availability.
While there exists a feed making under the AH & Vety Department, it still has to go a long way to be able to provide rearers easy access to quality feed. Feed manufacturing plant was commissioned on Sep 2002 with an objective of providing better quality feed for cattle, pigs and poultry. This is only feed plant in Mizoram. Plant’s installed production capacity is 50 MT per day but due to less marketing channel, only 10% of this is being utilized i.e. it produces 5 MT per day. This plant has been installed with the funding support of Non Lapsable Pooled of Central Resources. At present plant is neither making profit nor loss. This plant manufactures feed for livestock e.g. piggery, poultry, cattle etc. Mainly 4 products are manufactured in this plant. These products generally come with a shelf life of 1 month if stored in a dry place. The cost of pig meal concentrate is Rs. 15 per kg.
Marketing Constraints Lack of marketing network & infrastructure, as only one selling booth has been installed in Aizawl city which serves the local (Aizawl) level market limiting its penetration to rural areas in the district along with other districts. While the feed making plant does its bit, a major portion of the feed requirement of the state is met by readymade feed which comes from private players located in Guwahati. Even PIGFED purchases 500-600 q per month from private feed manufacturers and suppliers. Though the demand and supply situation puts feed manufacturing as a potential enterprise it is impossible for the village community to import major raw materials from Guwahati and run the enterprise.
All the major stakeholders opined that rearers do not rear sufficient no. pigs and hence local sale to local butcher is the most common mode of selling. One of the many reasons for not rearing large nos. of pig is the prohibitive cost of feed.
Proposed Interventions
Pig rearing for both piglet and pork sales in both the districts
Implementation Plan to carry out the intervention
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level
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Village / Cluster Identify and select right villages/clusters in both project districts to initiate pig selection rearing Social Identify the willing members/groups to start pig rearing. mobilization and Sensitize pig rearers on potential increase in income by using better rearing institution practices building Share the intervention plan, cost benefit analysis, and assess community interest level to take up the activity List out members separately who are already doing the activity and want to either expand or strengthen the activity. Carry out discussions with group members to share various roles and responsibilities of members. Preparation of Prepare a proper business plan for ‘pig rearing’ in consultation with the business plan incumbents. VCA can be referred here Capacity building Organize Technical training on better practices in convergence with AH & Vety Dept. Organize Training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis) for group members Phase II – Establish backward and forward linkages Backward Handhold rearers to procure inputs in bulk to reduce operational costs from linkages either Government or Private Pig Breeding Farm Share the list of major inputs suppliers for ensuring quality of inputs and its timely availability Establish finance support for pig rearing on a unit cost basis Production Implementation of best practices with the handholding support of the project team Clarity of roles, specialization and continuous skill improvement Market access Identify suitable and multiple markets (mainly local and at best town) and prepare list of local market players with their contact details Build System for collaborations Monitoring and Set up regular follow up and monitoring system to evaluate units from time to evaluation time to finds out gaps, take corrective steps and ensure delivery of appropriate extension services in convergence with AH & Vety Dept.
Economics
Technical Assumptions 1. Economics calculated for 6 fatteners and 2 sows 2. Floor space for sow is 48 sq ft per sow 3. Floor space for fatteners is 18 sq. ft. per fatteners 4. Gestation period 114 days 5. Weaning age is 60 days 6. Average no. of piglets per farrowing is 10
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7. Mortality up to 2 months is 10% 8. No. of farrowing during productive life is 10 times 9. Average body weight per fattener is 95 kg 10. Sale price of pork is Rs. 160 per kg 11. Sale price of wean piglet is Rs. 3000 per piglet 12. Cost of feeds is Rs. 15 per kg 13. Feed consumption (a) 2-4 months @ 1 kg per pig per day (b) 4-6 months @ 1.5 kg per pig per day (c) 6-8 months @ 2 kg per pig per day (d) 8-15 months (for sow) @ 2.5 kg per sow per day A. Capital Expenditure S.N. Items Rate (in Rs.) 1 Construction of farrowing pen 72 sq ft. 17000 2 Roofing for farrowing pen 3061 3 Construction of fattener sty (108 sq ft.) 28000 4 Roofing for fattener sty 4782 5 Cost of equipments 4500 6 SUB TOTAL (A) 57343
B. Recurring expenditure S.N. Items Amount in Rs. 1 Cost of 8 piglets 24000 2 Insurance 1560 3 Purchase of concentrated feed 48150 4 Land development for fodder cultivation 7500 5 Veterinary Aids including medicines and vaccines etc. 2000 6 SUB TOTAL (B) 83210 7 TOTAL(A+B) 140553 8 Interest at 12% for 1 year 16866 9 GRAND TOTAL 157419
C. Income and Profits S.N. Particulars Amount (Rs.) 1 Sale of piglets assuming each sow produces 9 piglets (saleable) and each sow gives birth 2 times a year. Sale price of piglets is Rs. 3000 per piglet (2 sows x 9 x 2 x 3000) 108000 2 Sale of fatteners assuming one fattener attains 95 kgs and sale price of pork is Rs. 160 per kg of pork 91200 3 Sale of empty gunny bags 350 4 TOTAL (C) 199550 5 Profits after interest 42131 6 RoI 30 %
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Economic Feasibility
Pig rearing is an economically feasible. An investment of Rs. 1,57,419 would be required for rearing 6 fatteners and 2 sows with a Return on Investment of 30 %.
Processing Possibility
While pork can be processed into smoked pork and ham etc., eating habits of local Mizos has not found adequate customers. Even MIFCO set up catering to town demand has not been able to make any impact with these processed products. Quite clearly in the current scenario, processing costs, negligible demand in the state for processed pork renders any such value addition unprofitable
Sensitivity Analysis
S N Parameters Revenue (Rs) Expenses (Rs) Profits before interest (Rs) 1 Expenses go up by 10% 199550 154608.3 44941.7 2 Expenses fall by 10% 199550 126497.7 73052.3 3 Production goes up by 10% 219505 140553 78952 4 Production falls by 10% 179595 140553 39042
4.6 Poultry
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(I) Poultry farming for meat (Broiler)
Poultry rearing is a way of life with the tribal and rural people in the areas covered under the survey. Even though people are into poultry rearing, it lacks commercial essence.
Poultry meat is an important source of high quality proteins, minerals and vitamins to balance the human diet. Specially developed breeds of chicken meat (broiler) are now available with the ability of quick growth and high feed conversion efficiency. Depending on the farm size, broiler farming can be a main source of family income or can provide subsidiary income and gainful employment to farmers throughout the year. Poultry manure has high fertilizer value and can be used for increasing yield of all crops.
The advantages of broiler farming are Initial investment is a little lower than layer farming Rearing period is 6-7 weeks only More number of flocks can be taken in the same shed Broilers have high feed conversion efficiency i.e. least amount of feed is required for unit body weight gain in comparison to other livestock. Faster return from the investment Demand for poultry meat is more compared to sheep/Goat meat
GLOBAL SCENARIO POULTRY
Global poultry meat production in 2007 is projected at 86.2 million tonnes, 3 percent higher than last year. Growth is expected in all regions, except in North America. United States' production will stagnate, because of higher feed and production costs, which fostered a slight downsizing of the sector for the first time. Canada's situation will greatly depend on the outcome of the measures taken to contain its recent AI outbreak, but the country is expected to increase its output. Production is also likely to increase in South America. Argentina and Brazil are showing the highest growth amongst producing countries reflecting, as in the case of pigmeat, a relatively favourable feed situation and competitive production systems. Thailand's poultry production is forecast to increase at a slower pace this year, as the market was burdened by large supplies carried over from 2006. Despite recurring outbreaks of AI, China is anticipated to increase its poultry output through measures that improve feed conversion into meat. The outbreak of AI at the beginning of the year had little impact on Japan's poultry sector, with output expected to increase slightly. All the other major poultry producers, namely Australia, Colombia, India, Indonesia, the Islamic Republic of Iran, the Russian Federation, South Africa and Turkey, are expected to increase their poultry production in 2007, largely in response to improved domestic demand.
In Africa, overall output is anticipated to increase slightly, mostly reflecting higher production in South Africa and a recovery in Egypt from AI, which had strongly depressed the sector in 2006. Despite the resurgence of AI in parts of the European Union, prospects for poultry production in 2007 remain relatively optimistic. Competitive prices, with respect to other meats, consumer preference for white meat
MART, Noida 79 Livelihood based Agri Business and Market Study in Mizoram and increased use in food preparations have favoured poultry meat. The accession of Bulgaria and Romania at the start of 2007 had only minor impacts on European Union poultry sector since their combined output contributes only 4 percent, or close to 500 000 tonnes, of the EU-27 poultry production.
Trade in poultry meat is projected to rise by 1 to 2 percent to 8.2 million tonnes, sustained by increased import demand, but limited by scant export supplies in the United States. Much of the import growth is expected to originate from Asia, especially China, Singapore and Viet Nam, where consumers have mostly substituted broiler meat for pork after the first outbreak of PRRSV in May 2006 in China and the subsequent spread to other parts of the region. Imports by Angola and Cuba are also forecast to rise, principally sourced from United States. Likewise, imports by Turkey are anticipated to recover from the AI-related contraction in 2006, reflecting a return of consumer confidence. By contrast, imports by Japan are set to decline, due to some AI-related concerns amongst consumers and high poultry meat stocks built up in 2006. A tightening in sanitary import requirements by the Russian Federation along with increased domestic production is also expected to result in smaller shipments to that destination.
As for exports, larger sales of chicken meat by Brazil are expected to account for most of the expansion in poultry trade. Exports from the country are now anticipated to surge by 11 percent, to 3.0 million tonnes, in response to strong import demand from countries in the Far East, the European Union, Venezuela and Near East countries, such as Kuwait and Saudi Arabia. Thailand's exports of poultry are set to rise strongly, as the country benefited from the recently introduced European Union import quota on salted poultry and cooked chicken meat. By contrast, despite larger sales to China, the export forecast for the United States points to a 5 percent contraction from last year's 2.9 million tonnes reflecting growing competition from Brazil, especially on the Asian market.
Scope for broiler farming and its national importance
India has made considerable progress in broiler production in the last two decades. High quality chicks, equipments, vaccines and medicines are available. Technically and professionally competent guidance is available to the farmers. The management practices have improved and disease and mortality incidences are much reduced. Many institutions are providing training to entrepreneurs. The broiler population has increased from 4 million in 1971 to 700 million in 1998. An average annual growth rate of 20% was estimated during the eighth five year plan (1992-1997). Increasing assistance from the Central/ State governments and poultry corporations is being given to create infrastructure facilities so that new entrepreneurs take up this business. Broiler farming has been given considerable importance in the national policy and has a good scope for further development in the years to come.
Poultry Development in Mizoram
Poultry development in Mizoram had a new turn in the late eighties with the establishment of Broiler Farms in various places and Hatchery at Tanhril and Lunglei, In the light of State Food Policy of Self Sufficiency in the production of food of animal origin, Poultry farming has come to the forefront of food production initiatives. Not only poultry meat is popular amongst Mizo people, gradual realization that poultry products provide good quality food which is grossly lacking in the normal diet of typical Mizo family has resulted in establishment of number of poultry breeding farms. Consumption of poultry meat
MART, Noida 80 Livelihood based Agri Business and Market Study in Mizoram and eggs vis-a-vis the production capacity of the state Government owned farm and private farm has created a wide scope for increasing the production of poultry birds in the state. By 2002-2003 AH and Vety Department had established 9 poultry farms which are meant for both demonstration purpose and nucleus for the propagation of good germplasm to cover the whole state. The following steps for development of Poultry Industry in Mizoram.
Technical Feasibility
Climate in Mizoram is suitable for rearing of poultry Technical norms including schedule for replacement of flocks Facilities and infrastructure available for supply of inputs, veterinary aid, marketing, training/experience of the beneficiary The community has the experience of rearing poultry (Desi). There exists a high demand in the locality as well as by the outside traders both for meat and eggs. Financial and non financial support services are available and there is also possibility of bulk selling to traders. This business generates income in short run.
Market Feasibility
Facilities and infrastructure available for supply of inputs, veterinary aid, marketing, training/experience of the beneficiary
Economic feasibility
An investment of Rs. 296363 would be required for rearing 250 broiler chicks with a Return on Investment of 8 %.
Movement of Poultry
Customer
Aggregation, Town Level Traders /Retailers Rs. 140-150/kg Management, Buy All the block, division and district head quarters back,
Transportation, Sales
Local Traders Sell at haats Rs. 85-105/kg Srikakulam Berhampur Jagdalpur Poultry Rearers Setting inputs, Rearing, Rs. 80-100/kg Cuttack Business Management Srikakulam selling Berhampur Stakeholders and their roles and functionsJagdalpur Cuttack Rearer
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The broad functions of the rearer are procurement of chicks, preparation of space to shelter the birds, provision on feed, watch and ward, carrying birds to local market for sale. They usually keep the indigenous breed and can comfortably operate with a flock size of 20 to 50. They procure improved variety of chicks by the sub agent of the major chick suppliers located in Aizawl. They provision the feed from their own source and buy it from either the private feed suppliers to from the AH & Vety department run feed manufacturing unit. The women are generally involved in the business. The farmers usually carry the 2-3 birds at once to the weekly haats and sell it in piece rate. Local traders also procure bird from the village point. The farmer commands an average price of Rs.80-100/kg.
Local Traders
These are the village based traders who operate in a radius of 5-10 kms and are active in the haats. The main activities of the traders are sourcing the birds and forward it to the town level trader /processor. They operate at a margin of Rs.5/kg. The transportation for the forward movement taken care by the town level trader.
Input Suppliers
Supply of chicks and chick feed come from Hatcheries located in Silchar, Guwahati and Kolkata. Eastern Hatcheries, Dynamic Hatcheries, Lahama Hatcheries, Arambagh Hatcheries are some of the few renowned suppliers. It was reported that the mortality rate of birds from Silchar and Guwahati was as high as 25-30 per 100 birds, while it was as low as 10-15 per 100 for birds coming from Kolkata. Cost of 1 day old Broiler chick is Rs. 50, while cost of 1 day old Layer chick is Rs. 45-50
Chick feed comes from Siliguri (M/s Samrat Feeds) which is of the Indian Export Quality. Generally the best quality 70-kg -bag of feed costs Rs. 1700, which was Rs. 1400-1450 3 years back. The retail price of feed during the study period was Rs. 30 per kg which was Rs. 20-25 per kg 3 years back. LR Feeds has sub agents in all the blocks who act as a feeder point for small towns and villages. LR Feeds through its channel sells 45-50 truckloads (1 truck load=130 bags, a bag=70 kg) or around 9 tons of feed per month.
LR feed, Aizawl is committed to supply feed in bulk to far flung districts and towns and the indicative cost for transporting (50 kms) a 70 kg bag will be Rs. 50. There are 15-20 feed retailers in the Aizawl town, while the only 2-3 retailers do a whopping business alike LR Feeds.
Gaps, Issues and Constrains
Stages Gap/Issues/ Constraint Pre-production No planning related to breed, scale, rearing modalities Largely indigenous breed reared Traditional mindset of non- commercialization Production Poor Rearing practices High mortality Lack of knowledge
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Post-production Need based selling hence lack of commercial mind set and marketing Individual selling Lack of appropriate infrastructure
Proposed Interventions
Stages Interventions Pre-production Introduction of improved variety of birds Production Integrating veterinary and insurance service Proper rearing skill Credit support system for meeting life cycle needs Post-production Linking with higher level traders and marketing
Implementation Plan to carry out the interventions
Key steps to be Activities to be performed by project followed Phase I – Preparedness at the community level Village / Cluster Identify and select right villages/clusters in both project districts to initiate selection poultry birds (broiler and layer) rearing Social Identify the willing members/groups to start either of the 2 or both type of mobilization and poultry bird rearing institution Sensitize rearers on potential increase in income by using better rearing building practices Share the intervention plan, cost benefit analysis, and assess community interest level to take up the activity List out members separately who are already doing the activity and want to either expand or strengthen the activity. Carry out discussions with group members to share various roles and responsibilities of members. Preparation of Prepare a proper business plan for ‘poultry rearing’ in consultation with the business plan incumbents. VCA can be referred here Capacity building Organize Technical training on better practices in convergence with AH & Vety Dept. Organize Training in business and marketing skills (costing, pricing, accounting, sales and marketing, negotiation, market analysis) for group members Phase II – Establish backward and forward linkages Backward Handhold rearers to procure inputs in bulk to reduce operational costs from linkages either Government or Private run Poultry Farms and Feed suppliers
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Share the list of major inputs suppliers for ensuring quality of inputs and its timely availability Establish finance support for poultry rearing on a unit cost basis Production Implementation of best practices with the handholding support of the project team Clarity of roles, specialization and continuous skill improvement Market access Identify suitable and multiple markets (mainly local and at best town) and prepare list of market players with their contact details Build System for collaborations Monitoring and Set up regular follow up and monitoring system to evaluate units from time to evaluation time to finds out gaps, take corrective steps and ensure delivery of appropriate extension services in convergence with AH & Vety Dept.
Economics of Broiler Farming
Technical Assumptions
1. Floor space requirement @ 1.02 sq. ft. per bird 2. Cost of day old chicks @ Rs. 40 per chick 3. Mortality rate @ 10% 4. Age of marketing is 3 months weight at marketing 3.38 kgs 5. Cost of feeds is Rs. 25 per kg 6. Feed Consumption a. 0-4 weeks @ 1.8 kg / bird b. 4-8 weeks @ 3.6 kg / bird c. 8-12 weeks @ 6.6 kg / bird 7. Sale price is Rs. 140 per kg (live weight) 8. 3 cycles can be completed in a year
A. Capital Expenditure
S.N. Items Amount (Rs.) 1 Construction of broiler house (255 sq ft.) 30000 2 Roofing Materials 9363 3 Cost of equipments 4500 4 TOTAL (A) 43863
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B. Recurring Expenditure
S.N. Items Amount (Rs.) 1 Cost of day old chicks (750 nos. in 3 cycles) 20000 2 Cost of feed @ Rs. 25 assuming one bird consumed 12 kgs in 3 months 225000 3 Veterinary aids including medicines and vaccines (lump sum) 7500 4 TOTAL (B) 252500 5 TOTAL (A+B) 296363 6 Interest @ 12% for 1 year 35563 7 GRAND TOTAL 331926
C. Income and Profits
S.N. Items Amount (Rs.) 1 Income from sale of live weight of 750 birds in 3 cycles in a year 354900 2 Profits after interest 22973 3 RoI 8
Sensitivity Analysis
S N Parameters Revenue (Rs) Expenses (Rs) Profits before interest (Rs) 1 Expenses go up by 10% 426000 349374.3 76625.7 2 Expenses fall by 10% 426000 285851.7 140148.3 3 Production goes up by 10% 468600 317613 150987 4 Production falls by 10% 383400 317613 65787
(II) Poultry farming for eggs (Layer)
Poultry egg and meat are important sources of high quality proteins, minerals and vitamins to balance the human diet. Specially developed breeds of egg type chicken are now available with an ability of quick growth and high feed conversion efficiency. Depending on the farm-size, layer (for eggs) farming can be main source of family income or can provide subsidiary income and gainful employment to farmers throughout the year. Poultry manure has high fertilizer value and can be used for increasing yield of all crops.
Global Egg Production
World Egg Production (million tonnes)
2002 2003 2004 2004/03 % change World 55.0 56.2 57.9 + 3% Africa 2.1 2.1 2.1 NC Asia 31.9 33.5 34.8 + 3.9%
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Europe 10.1 9.7 9.8 + 1.0% Oceania 0.2 0.2 0.2 NC N C America 8.0 7.9 8.0 +1.3% S America 2.8 2.8 2.8 NC Note: total Volume include hatching eggs Source: FAO
Scope for Layer farming and its National Importance
India has made considerable progress in egg production in the last three decades. High quality chicks, equipments, vaccines and medicines are available. Technically and professionally competent guidance is available to the farmers. The management practices have improved and disease and mortality incidences are much reduced. Many institutions are providing training to entrepreneurs. The improved layer population has increased from 35 million in 1961 to 115 million in 1996. The egg production in the same period has increased from 2,340 million to 34380 million. The egg production registered compound growth rate of 6.83% during eighth plan period (1992- 97). The per capita egg availability at present is 41 eggs; while as per ICMR recommendations about 182 eggs per person per year are required to balance the common vegetarian diet. Increasing assistance from the Central/State governments and poultry corporations is being given to create infrastructural facilities so that new entrepreneurs take up this business. Layer farming has been given considerable importance in the national policy and has a good scope for further development.
BEST PRACTICES
Quality Birds: Choose the strain that will perform best and is known to have good livability under reasonable environmental conditions. Good chicks may cost more but they will perform better and pay more too. Housing: There should be ample fresh air, free from drafts. Air must be circulating. High levels of non-desirable gases decrease growth rate and increase flock's susceptibility to respiratory disease. Ensure that the litter is dry. A well managed litter helps the birds in putting on feathers and improve feed conversion. It also reduces coccidiosis problem. Crowding: Overcrowding increases mortality, stress, as well as production cost. Hence, proper spacing is crucial for sustenance. Feeding: Always ensure adequate fresh feed. Birds that are without feed for six hours will record a drop in production and a 12 hour starvation will result in moult of wing feathers. There should be adequate feeder space for the birds. Guard against feed wastage. Maintain records of daily feed consumption. It will enable to determine feed utilisation and bird's performance. Watering: Provide plentiful and clean disinfected water. This management factor, although obvious, is commonly violated. Water restriction is a quick way to accidentally force the flock to moult. Ensure that the waterers are so placed that they are easily accessible to birds. Lighting: The duration of light should be 16 hours per day, but not beyond 17 hours. No advantage is obtained by exceeding this limit. The amount of light given to the flock in one day should never be less
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than that given the day before. A decreasing day length can prematurely cause hens to go out to production. One 40 watt electric bulb is sufficient for 200 sq. ft. area. Vaccination: Ensure that all birds are vaccinated for Marek's Disease and Ranikhet Disease. Birds not vaccinated are highly susceptible to these diseases. Debeaking: Follow correct de-beaking programme. Poor de-beaking can adversely affect egg production. Culling: Unsuitable and uneconomic birds should be timely culled. Health: Watch for early signs of disease for its timely treatment before it flares up in a big way. Some of the symptoms that indicate the onset of disease problems are: Drop in egg production and feed consumption: increased morbidity and mortality: inactivity and lack of vigour: droopy ruffled appearance and respiratory distress. Look for any sudden change in egg quality. Sanitation: Sanitary measures are of vital importance in poultry operation. Keep roundworms, tapeworms and caecal worms under control. External parasites are a serious farm hazard, and can reduce production if unchecked. Deworming at regular intervals should be practiced. Egg Quality: Respiratory and intestinal diseases should be kept under control for the maintenance of quality of egg shells. Indiscriminate use of sulpha drugs can affect the egg shell quality. The use of tetracycline can, however, improve it. Records: A daily record of feed consumption, egg production, mortality, income and expenditure is essential to help improve farming efficiency and pinpoint troubles and their solutions. Routine Checking: Critical items of management should be listed on a daily, weekly or seasonal check list. Every item must be checked. It helps to locate the cause of trouble when it occurs. Routine checks are: Cleaning and refilling of waterers and feeders: cleaning the house and spraying insecticide; stirring the litter; dusting; culling of birds; egg collection, etc. (Source: Indian Poultry Industry Year Book)
Economics
Technical Assumptions Floor space requirement @ 1.02 sq. ft. per bird Cost of day old chicks @ Rs. 40 per chick Mortality rate @ 10% Age of flock at first laying is 6 months Productivity period is 12 months Cost of feeds is Rs. 25 per kg Feed Consumption o 0-8 weeks @ 45 gms per day / bird o 8-20 weeks @ 100 gms per day / bird o 20-52 weeks @ 140 gms per day / bird Sale price of eggs is Rs. 8 per egg Each bird will lay around 213 nos. of eggs
A. Capital Expenditure
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S.N. Items Amount (Rs.) 1 Construction of layer house (255 sq ft.) 30000 2 Roofing Materials 9363 3 Cost of equipments 4500 4 TOTAL of A 43863
B. Recurring Expenditure
S.N. Items Amount (Rs.) 1 Cost of day old chicks (250 nos.) 10000 2 Cost of feed @ Rs. 25 assuming one bird consumed 41.8 kgs 261250 3 Veterinary aids including medicines and vaccines (lump sum) 2500 4 TOTAL of B 273750 5 TOTAL (A+B) 317613 6 Interest @ 12% for 1 year 38113.56 7 GRAND TOTAL 355726.56
C. Income and Profits
S.N. Items 1 Income from sale of eggs 426000 2 Profits after interest 70273 3 RoI 22
Economic Feasibility: An investment of Rs. 317613 for rearing 250 layer chicks with a Return on Investment of 22%.
“Vanaraja” birds (developed by Project Directorate on Poultry, Hyderabad) have been recently introduced in Mizoram by ICAR under NATP- Jai Vigyan - Poultry Programme. To assess the performance of these birds under Mizoram agro climatic conditions, a systematic study was conducted in nursery as well as field conditions. A total number of 3138 Vanaraja chicks were reared in nursery up to six weeks and then distributed to farmers for rearing under backyard conditions. The weekly body weight, feed consumption and mortality pattern were recorded. The weight gain of chicks was assessed based on the weekly body weight. The average weight of day old chick was found to be 36.58 g. The average body weight of Vanaraja chicks at 2nd, 4th and 6th week was 141.60, 360.87 and 625.42 g, respectively. The average FCR was found to be 2.58. At backyard, the birds were allowed to scavenge outside in the field from morning to evening and then housed during night time in bamboo cages or houses. Supplements like broken grains, raw or boiled rice and left over/kitchen waste from house are offered to birds. In the field conditions, the average age and weight at laying was 20-22 weeks and 2.8-3.45 kg, respectively. Number of eggs laid by per bird in 30 days was found to be 16-20. Hatchability of eggs under natural brooding was 75 - 80 %, but the ability of Vanaraja birds to brood was found to be less. Hence, many of the farmers practice hatching of Vanaraja eggs with desi hens. The body weight gain of distributed birds was found to be higher under field conditions when supplemented with little concentrate feed. The average body weight at 18 months was found to be 4.5±0.58 and 3.57± 0.78 kgs, for little concentrate feed supplemented group and only scavenging group, respectively. The results on egg and chicken consumption pattern revealed that 31.85 % of eggs and 29.60 % of chicken were utilized for home consumption; where as 68.15 % of eggs and 70.40 % of chicken were sold to others/market. Source: Performance of Vanaraja dual purpose birds under Mizoram agro climatic conditions/ A. Kumaresan, K.A. Pathak, S.K. Ahmed and Bijoy Chhetri/ICAR Research complex for NEH Region, Mizoram centre, Kolasib, Mizoram - 796 081
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Sensitivity Analysis
S N Parameters Revenue (Rs) Expenses (Rs) Profits before interest (Rs) 1 Expenses go up by 10% 354900 325999.3 28900.7 2 Expenses fall by 10% 354900 266726.7 88173.3 3 Production goes up by 10% 390390 296363 94027 4 Production falls by 10% 319410 296363 23047
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4.7 Stick making (used for making incensed sticks)
Incense Sticks (agarbatti) production uses traditional skills and renewable resources largely obtained from forests. While production requires simple technologies and low capital investments, the industry is highly labour intensive. In this lies the attractiveness of the sector for rural poverty alleviation since a large number of people can be benefited. Agarbatti is a widely consumed product domestically and internationally. While the unit cost is low, it is produced in large volumes of several billion sticks a year; the production process is manual; and it is produced largely by women in informal home-based work or working in SHGs, often at their own pace. The industry thus leads to home-based income generating opportunities for very large numbers of women.
Mizoram, with an area of 21,090 sq. Km. has an abundant reserve of Bamboo forest covering 12,54,400 ha, contributing to 14% of All India Bamboo Distribution. Bamboo is distributed thoroughly between 400- 1520 m altitude. Melocanna baccifera (Mautak) is the major component of bamboo in Mizoram.
A total of 21 species of bamboo have been recorded in the forest of Mizoram. Out of these species, Melocanna baccifera is the predominant and occupies 95% of the bamboo-afforested land in the state. It is often distributed in tropical and subtropical riverine reserves and valleys and grows profusely in the drainage areas of the Tlawng, Tut, Teirei, Lang-kaih and Barak rivers in west Aizawl. It is a very versatile species; the culms grow to 20 metres tall and are strong and durable with slender fibres and inconspicuous nodes which render them ideal for house building, weaving, pulping and the production of small softwood products such as incense sticks, chopsticks and toothpicks. The shoots can also be eaten, and are of high quality. Per capita consumption of Bamboo is 4.41 nos. in rural area and 1.81 nos. in urban area.
The incense stick market in India is valued at $400 million with an annual compounded growth rate at 20%. Further value addition occurs when incense paste is hand-rolled, mostly by women, on to the sticks to make “raw” incense sticks, which are then perfumed to obtain finished incense sticks. About 1,000 billion incense-sticks are produced annually, and bamboo sticks account for only 7-8% of the total cost of incense sticks. This puts the current value of bamboo in incense sticks at $30 million. Annually 0.67 million tons of bamboo is consumed by the incense stick industry. Incense stick production is a home- based industry engaging about 500,000 people, mostly women. Though both domestic and export markets are growing, only 10% of the total cost of finished incense sticks is realized by the producers because of marketing and financial constraints. Transportation, marketing and advertising often claim 60-70% of the total cost, causing both producers and retailers to be at the mercy of agents and wholesalers. This is beginning to drive people out of the industry, especially in South India. Note that agarbatties use inputs that are outputs from other enterprises – bamboo sticks, charcoal and jiggat (tree bark powder). (Source: http://www.inbar.int/Board.asp?BoardID=225)
Bamboo in micro enterprises: Micro enterprises make extensive use of bamboo in furniture, handmade paper, handlooms, curtains and blinds, toothpicks, chopsticks, incense sticks and various other products. The incense stick industry in India has over 3800 production units that generate nearly US $ 400 million from domestic and export markets.
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Availability of Input (Bamboo)
Bamboo has been mostly obtained free of cost from the forest and hence, all the earnings from the stick making activity belonged to the women involved.
1. The total bamboo yield of Mizoram is 3237689 MT/Year. At present, only a small percentage of bamboo resource, 28315 MT/Year are harvested for the purpose of local construction, tiny handloom and handicraft production. 2. While the total bamboo yield works out to be 3237689 MT/Year in Mizoram, the annual aggregate consumption figures at 28315 MT/Year resulting an annual Bamboo surplus of 3209374. Present bamboo resources extracted accounts for 1% of the total yield and thus 99% of the surplus bamboo yield of Mizoram wasted unutilized. 3. Thus, there is a huge surplus of 3209374 MT/Year annually, which can be scientifically and gainfully utilized for generating huge amount of resources to the State. 4. A stick making unit is being set up at North Chawnpui, Mizoram with an installed capacity of 120 tons under a project of National Mission on Bamboo Applications. The round bamboo sticks (1.5mm & 2.5mm) will be used for incense sticks as well as blinds.
Movement of Stick making
Karnataka (Bangalore), Tamilnadu (Chennai) Rs. 30/kg BDA Town Trader (Aizawl)
Supplies raw materials for Intermediaries square stick, machines
Stick (used for making incensed sticks) makers
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Incense Stick making machinery manufacturers
Name of the firm Contact Details Garnet Tools Contact: Abhay Banthia 2-D, Industrial Area, Ujjain Road, Dewas, Madhya Pradesh Tele: 91-7272-228719, 91-7272-50054, Fax: 91-7272-252181 Email: [email protected] Dhanjal Mechanical Works Contact Person: Mr.Jagjeet Singh 90, Phears Lane (near Shilpa Bhawan),Kolkata-700012 Phone: (033) 22377916, 22375183, Fax: (033) 22367647 E-mail: [email protected] M.J.Industries Contact Person: Mr. Abdul Kudush Opp. Ashreya departmental store Arabic College Post, K.G.Halli, Bangalore -560041 Phone: (080) 5462970, Fax No.: (080) 51251745 Guru Nanak Mechanical Contact Person: Mr. Gurvinder Singh Works Pvt. Ltd. Makum Road, Tinsukia 786146, Assam Phone: (0374) 2338545, Fax: (0374) 2332775 E-mail: [email protected] Arihant Engineering Contact Person: Mr P.C.Gupta/J. K. Bothra 6, Industrial Area Ujjain Road, Post Dewas 455001, Madhya Pradesh Phone: 07272-227500, Fax: 07272-228700 P&B Machinery Contact Person: Mr. Lalbiakzuala Ralte / Mr. Lalpiangliana Sailo Mualpui, Aizawl, Phone No. – 09436197191/09436193365 Email: [email protected], [email protected]
Market Support
Mr. Lalura is an entrepreneur, who is engaged in supply of small stick machine making and procurement of sticks from villages. He gives stick making machines costing around Rs. 500 to the villagers at free of cost to manufacture raw sticks that are use for making sticks (used for making incensed sticks). He collects these sticks made by villagers through an intermediary, who collects all sticks from the door steps of the villagers. After aggregating sticks he sells it to Bangalore & TN Agarbatti traders. Mr. Lalura has set up L.Z.Bamboo Industry in 2003. He basically operates in two district- Lunglei & Aizawl. According to him, best season for treading is September-March. Trade Volume: His trade volume has been decreasing with every passing year since more traders have come into being along with increased activity of Bamboo Development Agency to venture into square sticks. In the year 2007 he sold 150 truck loads (9-12 tons), which decreased to 100 truckloads in 2008. In the year 2009 he could manage to sell only 40 truckloads of sticks. 1 Truck contains 300 small bag (20- 25kg/ small bag) and 200-250 big bag (35-40kg/ big bag). One of the major reasons attributing to the decline in trade volume was the Bamboo flowering (famine) in 2007 which drastically reduced production and procurement of bamboo over the years. His profits are to the tune of 3-5% (in 2008 his turnover was 1.5 crores with a profit of 6 lakhs).
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Quality mechanism for procurement of sticks: He employs 2 quality indicators firstly even size of sticks and secondly no black spots in sticks Selling Dynamics: He sells to big traders located in Bangalore and Tamil Nadu. According to him the transportation cost has been gradually increasing. It was Rs. 7.45/kg in 2008, which increased to Rs. 8.25/kg in year 2009. Currently the cost stands at Rs. 10 per kg. Similarly there has been an upward trend in price offered by the traders. In the year 2008 the price was Rs.24 per kg which increased to Rs. 26 per kg in the year 2009. In 2010 the price stands at Rs. 30 per kg. Labour & Packaging charge: He also incurs cost towards labour charges for packing and unpacking, loading and unloading, which is captured in the table below. Additionally he supplies sack (cost: Rs 15/sack) & Plastic bag (costs Rs. 5/bag) for ensuring proper packing.
Particulars Inward material from villages Outward material for Bangalore Small bags (Rs Big bags (Rs per Small bags (Rs per Big bags (Rs per per unit) unit) unit) unit) Labour charge for 3 5 3 5 packing & unpacking Labour charges for 2 3 2 3 loading & unloading
Major Challenges
- High transportation cost because of long travel involved from Aizawl to Bangalore. - Inconsistent raw material (stick) supply - Bamboo flowering
The Bamboo Development Agency of Mizoram in August 2010 struck a deal with India’s largest incense sticks company for marketing the stated-produced square sticks. Executive Director of Bamboo Development Agency and Director of State Industries Department Shurbir Singh and Chief Operating Officer of N Ranga Rao & Sons, Mysore, M S Suresh, signed the memorandum of understanding at the office of commissioner and secretary of industries.
According to the agreement, Mizoram will supply 50 tonnes of square sticks to N Ranga Rao & Sons on monthly basis. The company will also give necessary training to stick-makers of the state. Samples of square sticks produced in Mizoram were shown to the CEO and he was satisfied with the quality. The Bamboo Development Agency, Mizoram had on February 3 this year signed similar MoU with ITC, Chennai for marketing the Mizoram-produced round sticks. The BDA have set up production centres for round sticks at Saiha, Lunglei and Haulawng. These units are now in operation. 'In addition to these units there are various units of this kind supported by BDA through National Mission on Bamboo Application, New Delhi.
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Agarbatti Value Chain
The production process of agarbatti essentially entails four stages: (1) production of bamboo sticks for the central core of the agarbatti; (2) production and preparation of charcoal and jiggat powder; (3) preparation of incense paste (masala) and its application onto the bamboo stick to produce the batti; and (4) scenting, or application of perfume, to produce the agarbatti, followed by packaging. The value addition between these stages is nearly exponential. The last stage is the most value-adding, and is done in the company that owns the brand. The first three stages are outsourced, mostly to women.
In Mizoram both square and round stick making activities have great potential. Given the fact that the square stick making is a lesser expensive proposition, and does not require high technical skills, it is proposed to introduce and intensify its production, particularly when the nodal agency BDA has MoU for supply of 50 tons of square sticks per month.
Proposed Intervention
Production of square sticks for incensed stick making
Economics of the intervention
Assumptions
1. Cost of slicing and stick making machine @ Rs. 5500 per machine 1. Production ability of 8-9 kgs per day 2. Cost of square sticks in Aizawl is Rs. 15 per kg 3. Economics calculated for square stick production A. Fixed cost
Particulars Total Amount (Rs) Slicing Machine 5500 Sickle and other equipments (lump sum) 2000 Total (A) 7500
B. Labour Cost
S.N. Particulars Quantity of Rate per Amount man days man day (Rs.) 1 Collection of bamboo 60 132 7920 2 Slicing bamboo at nodes and making small 24 132 3168 sized bamboo planks 3 Selling the sticks 6 132 792 4 Total (B) 11880 5 Total (A+B) 19380
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6 Interest @ 12% for 1 year 2325.6 7 GRAND TOTAL 21705.6
C. Income and profits
S.N. Particulars Amount (Rs.) 1 Sale of 225 kgs of production @ Rs. 15 per kg by working 25 days 40500 per month; over 12 months the production will be 2700 kgs 2 Profits after interest 19794 3 RoI 97
Economic Feasibility
An investment of Rs.19380 would be required for making sticks with a Return on Investment of 109%.
Sensitivity Analysis
S N Parameters Revenue (Rs) Expenses (Rs) Profits before interest (Rs) 1 Estimated figures 40500 19380 21120 2 Expenses go up by 10% 40500 21318 19182 3 Expenses fall by 10% 40500 17442 23058 4 Production goes up by 10% 44550 19380 25170 5 Production falls by 10% 36450 19380 17070
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Annex – 1: List of persons met
S. N. Name Designation Department / Village Contact No. 1. Dr. V. Lalremthanga Director RD 09436354394 2. Ms. Ramdinliani Dy. Director RD 09436141432 3. Shri. P. Bhattacharjee Director, CHA Agriculture 09436142509 4. Mr. Samuel Rosnaglura Director Horticulture 09436140587 5. Dr. (Ms.) E. Saipari Dy. Director Horticulture 0389-2326378 6. Ms. R Lalrodingi Director, BDA Industries 09436141324 7. Mr. Rosanga Colney Director Sericulture 09862584284 8. Mr. C Lalsangluaia BDO, Thingsulthiah RD 09436360880 9. Mr. Vanlalrooa EO, Thingsulthiah AH & Vety. 10. Mr. Lalthangonorial Inspector- Eco & Stat, RD Thingsulthiah 11. Mr. Lawrence Addl. Programme RD 09862809417 Lalrammawia Officer, MGNREGS, Thingsulthiah 12. Dr. Rokhawla Vety. Information AH & Vety. Officer 13. Mr. J Rothanga S O
14. Mr. R Colney SMS ATMA 15. Mrs. Thapui (Dy. MAMCO (Mizoram Agri Manager Marketing Corporation) 16. Mr. Lalsonglura Sailo SMS (Oil palm) Agriculture 17. Mr. H Saithantluanga DDP Agriculture 09436152614 18. Dr. Daniel Chianghnuna Dy. Director AH & Vety 09436153009 19. Mr. Lalzarliana Hrahsel APM, BDA Industries 0389-2300060 20. Ms. R Laltanzini APD DRDA, Aizawl 9862588280 21 Ms. Helen Zomuanthangi APO (M) DRDA 09436144914 22. Mr. Vanlalnuntluanga HDO Horticulture 09436148059 Renthlei 23. Ms. Lalsangpuii Hmar BDO, Phullen RD 09862739124 24. Mr. Lalngilneia Sr. Manager Mizoram Rural Bank 08974001399 25. Mr. R. Jyrwa AGM NABARD 09612166230 26. Mr. Lalchuana BDO RD 09436143319 27. Mr. Lawrence APO RD 09862809417 Lalrammuzwia 28. Mr. John Tanpuia BDO RD 09436351642 29. Dr. P M Ghole General Manager NABARD 09436140846 30. T Liankunga HDO Horticulture 09436151320 31. Lalremthanga Dy. Manager (M) MAMCO 09436141485 32. Douglas Lalmawikima Coordinator The Salvation Army 0961219502 33. R C Lalhmunzauva Butcher, Lunglei Lunglei 08014689120 market 34. Vanlalhruaia Chairman Lunglei Butchers’ (pig) 09436370601 cooperative Society Ltd. 35. Chhhawnkima President, Village Village Mulathuam (N) 09612063952 Council 36. Biakhmingthanga President, Village Village Vannhe Council
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S. N. Name Designation Department / Village Contact No. 37. F Ramhlunthanga Vice President, Village Village Vannhe Council 38. Dr. Hlupuii Manager, Pig Farm, AH & Vety. Thengzawl 39. Ms. Zorini Owner LR Feeds, Temple 09436143559, Square, Aizawl 03892329687 40. Mr. Lalzarliana Asst. Project Manager BDA 09862566723, 03892314950 41. Mr. HDO Horticulture 09436142184 42 Dr. Daniel AH & Vety 43 Mr. Sangzuala Dy. Manager MIFCO 2322180, 2326255, 09436140901, 44 Mr. Lalremliana MD PIGFED 0389-2319445, 2319448, 0936146097 45 Ms. Lalsangpui BDO, Phullen RD 09862739124 46 Mr. Lalsangluaia BDO, Thingsulthliah RD 094360880 47 Mr. John BDO, Lungsen RD 09436351642 48 Ms. BDO, Lunglei RD 09436143319 49 Mr. Biakmawia President Reiek Multi Farming 09862359178 Society 50 Mr. B.Z Owner PNB Machinery 09436197191 51 Mr. Chhuamawia Entrepreneur, Round Hawlong, Lunglei 09436789496 Sticks and Collector Square sticks 52 Mr. Lalthazuala Entrepreneur, Round Sethlum 09436147189 Sticks Lunglei 53 Mr. Laltanmawia APO, NREGA RD 09862806538 54 F. Vanlalsanga Petty Trader. Phullen RD 09856581724, 03892570211 55 Mr. Lalrimzama President, Village Phullen 09612323023 Council 56 Mrs. Thapui Dy. Manager MAMCO 0389-2347325 57 Dr. Zartea Manager, Feed AH & Vety 09436197972 Making Plant 58 Mr. Chalkaia Turmeric Processor, Aizawl 0389-2325617, Upper Republic 09612121743 59 Mr. Nazrul Merchant Agent Aizawl 09862324790, (Ginger, Turmeric) 09862771415, 09436385819 60 Mr. Zion Lalrenruata General Secretary All Mizoram Farmers 09862566106, Union 09436778580, 03892318189 61 Mr. Chama Dy. Manager MIFCO 03892326020, 09436156349 62 Mr. Zohmingsanga President, Village Thanglailung 09615560259 Council 63 Mr. C. Dengmaura Vice President, Village Thanglailung 09615716932 Council 64 Mr. Mani Trader and Seling 08014443847 Commission Agent 65 A. Lalrinawma Orange Orchard Thanglailung 09615289653
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S. N. Name Designation Department / Village Contact No. Owner 66 P C Zakhuma Pig and Poultry rearer Thanglailung 09615957395 67 Mr. Lalura Owner, L.Z. Bamboo Aizawl 9862565078 Industries 68 Mr. John Owner, Private Pig Aizawl 9862356610 Farm 69 Mr. H. Ruakhhawna Chairman, Lunglei Lunglei 9436774745 Butcher (Pig) Coop Ltd. 70 M. Lalthazuala Entrepreneur, Round Haulawng 9436147189 stick unit 71 Ms. C. Lalramchhunanga Egg Trader, Bara Aizawl 9612010688 Bazar 72 Mr. Biren Lal Dey Egg Trader Lunglei 9436762549 73 Ms. Ruati Poultry meat trader, Aizawl 9856735923 Chandmari
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Annex – 2: List of Secondary sources / References
1. Comprehensive action plan for bamboo flowering and famine combat schemes (BAFFACOS: 2004- 2005 to 2008-2009), Planning & Programme Implementation Department Government of Mizoram 2. Annual report 2008-09, Ministry of Development of North Eastern Region 3. The Bamboo Policy of Mizoram 2002 4. Economic Survey 2008-09, Planning & Programme Implementation Department Government of Mizoram 5. Final comprehensive project proposals under NLUP for sustained livelihood development for urban and rural poor of Mizoram 6. New Industrial Policy of Mizoram, 2002 7. Poverty Eradication / Alleviation in North East India: An Approach, The North Eastern Council, Shillong 8. Statistical Handbook 2008 9. Statistical Abstract 2008-09, Department of Agriculture (Crop Husbandry), Mizoram 10. State Perspective and Strategic Plan (SPSP), Mizoram, Mizoram Watershed Development Agency, Department of Rural Development, Government of Mizoram 11. State Focus Paper, 2010-11, Mizoram, National Bank for Agriculture and Rural Development, Mizoram Regional Office, Aizawl 12. Potential Linked Credit Plan (Aizawl, Kolasib, Mamit & Champai Districts), Mizoram, 2010-11, National Bank for Agriculture and Rural Development, Mizoram Regional Office, Aizawl 13. Annual Report of Animal Husbandry& Veterinary Department 2002-03, Directorate of Animal Husbandry& Veterinary, Government of Mizoram 14. Report on Integrated Sample Survey for Estimation of Annual Production of Milk, Eggs and Meat for the year 2004-05, Directorate of Animal Husbandry& Veterinary, Government of Mizoram 15. Activities and Achievements during 2001-2008, Mizoram Small Farmers Agri-Business Consortium, Aizawl, Mizoram 16. Brief Record on Mizoram Mautam 2007-08, Department of Agriculture (Crop Husbandry), Mizoram 17. Indian Poultry Industry Year Book 18. http://investinmizoram.nic.in/foi/ahs.htm 19. http://www.thepigsite.com/articles/2/ai-genetics-reproduction/1857/world-pig-production- opportunity-or-threat 20. Developments in Global Pig Production by Leo den Hartog, Nutreco R&D, PO Box 220, 5830 AE Boxmeer, The Netherlands; Department of Animal Sciences, Wageningen University, Wageningen, The Netherlands Email: [email protected] 21. http://www.inbar.int/Board.asp?BoardID=225
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Annex – 3: List of wild life trade prohibited under the Wild Life (Protection) Act, 1972 Section: 39, 44, 48A, 49A, 49B
1. Butterfly (Phengphelep) 2. Live Birds (Sava) 3. Orchid (Nauban) 4. Specimen and dried root of plants 5. Wild animal trophy 6. Bear Bile (Savawm Mit) 7. Live Animal (Ramsa) 8. Pangolin scale (Saphu Kawr) 9. Tiger/Animal bone (Sakei/ ramsa ruh) 10. Tortoise and its shell (Satel leh a kawr) 11. Turtle and its shell (Sumsi leh a kawr) 12. Tiger / Animal Skin 13. Dried Meat 14. Dried Frog Meat (Uchang rep) 15. Specimen and dried leaf 16. Insect specimen
Source: Information circulated by Wild Life Wing, E&F Dept, Mizoram
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Annex – 4: Stakeholders’ Consultation Workshop
Background
The North East Rural Livelihoods Project (NERLP) is a World Bank funded poverty alleviation initiative by the Ministry of Development of North Eastern Region (MDoNER) which is planned in the 4 North Eastern states of Sikkim, Mizoram, Nagaland and Tripura. The project envisaged conducting Livelihood Based Agri Business and Market study in each of its project states.
MART a leading Livelihoods and Marketing Consultancy was commissioned to conduct the aforesaid studies through a contract signed between MDoNER and MART on the 4th of August 2010. MART submitted draft report of Mizoram state to NERLP and World Bank by email to receive their feedback on the report. This report is the documentation of the feedback received on the draft report submitted by MART to NERLP. The feedback to be incorporated by MART in the final report is mentioned separately under section 3, later in this 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 Mizoram on 11th February 2011
Stakeholders’ Consultation Workshop
Objective : To share findings and recommendations of draft report Date : 11th February 2011 Venue : Office of Director, Rural Development, Aizawl, Mizoram Time : 2:00 pm to 4.00 pm
MART has been conducting “Livelihoods based agribusiness and market study” in all four states under the purview of NERLP. In order to finalize the draft report of the aforesaid study in Mizoram, a multi stakeholder workshop was organized at Office of Director, Rural Development, Aizawl, Mizoram from 2 pm – 4pm on 11th February 2011.
The Consultant Workshop started by Mr. Lalremthanga welcoming the stakeholder-participants for making it convenient to attend the workshop. He shared the forum about the North East Rural Livelihood Project (NERLP) and the progress made in the state of Mizoram. He also shared about the number of studies which the project is conducting by involving external Consultants. He then set the agenda of the Workshop and introduced Mr Ajit Narzary, PM (F&A). RPMU, NERLP and Mr. Ashwini Chandak, Senior Consultant, MART, as the speakers of the workshop. He informed the forum that while Mr. Narzary will share the status of the project, Mr. Chandak will share the findings of the Livelihood Based Agri Business and Market Study conducted in the state of Mizoram, which has been shared in the form of Draft Report.
All the stakeholder-participants then briefly introduced themselves wherein the 20 participants constituted officers from the Block Development Offices, line departments including Agriculture, Animal
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Husbandry and Veterinary, Horticulture, Sericulture, Environment and Forests, Fisheries and officers from apex nodal bodies including DRDA, NABARD and Mizoram Bank.
Mr. Narzary informed the forum about the status of the State Project Implementation Plan (PIP), structure of the NERLP in the status and modus operandi of the project in term of the major focus areas and community level. He shared that the State PIP has been finalized and intimated the forum on the structure of the state operations including the State level unit having State Project Manager, District level unit having District Project Manager and the Project Facilitation teams (PFT) at the block level. He also informed the forum that the post of State Project Manager has been advertised to which a number of applications has been received by the RPMU, NERLP, Guwahati and a decision is imminent. He shared NERLP’s focus on social mobilization aspects and the community level target groups including Self Help Groups (SHGs), Federation of SHGs, Producer Company around SHGs.
Mr. Ashwini then started with the presentation on the findings and recommendations of the study carried out by MART in the state of Mizoram. He shared the objective of the stakeholder workshop which was to Share findings on livelihoods 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 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. Coverage of 10 villages, 5 each in the 2 project districts of namely Aizawl, Lunglei along with other stakeholders was also shared with the forum.
The forum was then taken through the Demographic and Population profile of the villages. 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.
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. Turmeric, Mandarin orange, pig rearing, poultry rearing and stick making (batti making) 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.
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Finally a summary of the activities sharing the (a) Suggested Intervention, (2) Unit of the activity, (3) Fund requirement, (4) Return on Investment, (5) Convergence potential with prospective agencies, institutions and experts was shared with the forum.
Consolidated Feedback
The following is a list of relevant feedback on the draft report received from various sources and their corresponding responses by MART. These feedbacks will be incorporated in the final report.
3.1 Feedback received from NERLP
Chapter 1
Observations Response
In the step 4 the example of five products should be Taken note of, will be addressed suitably in the relevant to a particular state context of Mizoram
Chapter 4
Observations Response
The process of short listing of products has to be Taken note of, elaborate justifications will be elaborated and justified. 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 will be included under each product value products. chain.
The study must also highlight the changing demand 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 gaps and constrains including the solution Noted, however, more clarity is sought on the matrix found are somewhat sketchy. These should nature of details asked for since the ‘proposed be more focused interventions’ responds to the gaps identified
The economic feasibility of the selected products Taken note of, will be mentioned has not been mentioned
In case of identification of the major players of Taken note of, role of major players in the context products, the role of some players are not of the activity have been reflected in the write ups, mentioned e.g. wholesaler, retailer, transporter etc. however role of specific players sought applies to turmeric and mandarin orange and will be included
The economics of all the sub sectors should be more Detail economics has already been given for broad, covering all aspects, including marketing shortlisted five products that include cost for raw materials, transportation, and fixed cost, and marketing etc. More clarity is sought on the nature
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of details asked for.
The possibility of partnership with identified Taken note of for integrating under each product players of the sub sectors are not explored value chain adequately.
The study has not identified the critical Taken note of, each of the write ups under the intervention points in the value chain of the proposed intervention sections brings out the products. In view of thereof, it has not covered critical intervention points, wherein the investment investment planning for those critical points. sought for the intervention has been projected.
The study should provide guidance for setting up Taken note of for integrating under each product small, viable and sustainable processing units. value chain
3.2 Feedback received from World Bank feedback
Observations Response
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 executive summary tabular 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 (MART) Potential partners will be mentioned in tabular should clearly identify one agency who can be the form in the executive summary overall resource/ sector support agency which can be contracted in.
3.3 Relevant feedback received from State level consultation workshop
DD (Horti) pointed out the changed prices of the produce and products and requested it to be updated in the report DD (Agri) o Pointed out that seasonality of the paddy as depicted in the table needs a revision since in Jan, Feb, March production of paddy does not take place o Observed that ginger as product was not listed in the study to which MART representative responded that the study village did not have ginger as a major product. Moreover, he recapped the discussion in the 1st Stakeholder workshop wherein ginger ability to erode soil and the fact that MAMCO as an institution deals with marketing of it led to considering other produce for value chain analysis. o Wanted MART to suggest marketing strategies which will then help villagers to increase their incomes, to which MART representative responded that the report has detailed the marketing mechanism which could be employed for ensuring the same. DD (Agri) wanted specific understanding on Handholding, PPP, Buyback and contract farming as different marketing While commending the presentation, DGM (NABARD) enquired that what the role of bankers is in the current project, to which Mr. Ajit from NERLP responded in detail.
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DGM, NABARD was also keen to understand the structure of the project and its modus operandi to which Mr Ajit responded in detail. Chairman MRB o Observed that the study reflects a high % of villages engaged in incensed stick making. It was clarified that it was actually batti making i.e. an activity which uses bamboo for making sticks which is then made into incensed sticks. o Commended the study and congratulated MART for its proper documentation. He shared that the without proper village level infrastructure such activities cannot be promoted as planned. Moreover, synergy with Government Department who has the focus on the potential products identified by the study will be crucial to achieving the objectives.
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List of Participants in Stakeholder Consultation Workshop
S.N. Name Designation Department / Phone No. Organization 1 Ms. Pinky Zosangpuii BDO Rural Development 9862329373 (RD) 2 Ms. Lalsangpuii Hmar SDO, Saitual / BDO, Phullen RD 9862739124 3 Mr. C. Lalsangluaia BDO Thingsultliah RD 9436360880 4 Mr. R Lalshalliana BDO Aibawk RD 9436150280 5 Mr. Joseph APO, Darlawn RD 9862380521 Lalmuanpuia 6 Ms. R Lalramengzami CEC CYMA 9436140767 7 Mr. Lalhmachhauna APM Industries 9436151717 8 Mr. Lalthangkhuna BDO Bunghmun RD 9436151872 Gangte 9 Mr. Lalzamlova Hmar FEO Fisheries 9436362397 10 Dr. J Rongura SO (P) AH & Vety 9436152232 11 Mr. Lalengmawia Sulo UDC RD 9469493780 12 Mr. R Lalnunzira DD (Agri) Agriculture 03892301384 13 Ms. R Laltaqnpuii APO (W) DRDA (A) DRDA 9436144069 14 Mr. Lalrozama ADS Sericulture 9436154415 15 Mr. Rosangura Ralte DD (Horti) Horticulture 9436141608 16 Mr. Lalhmachhuana SDO, Lunglei RD 9436143319 17 Mr. B Suanzalang Conservator Forests E&F 03892312071 18 Mr. F R Marak DGM NABARD 9856090471 19 Mr. Ajit Narzary PM (F&A), RPMU NERLP 9435701522 20 Dr. R Lalmlsawmi Vety Surgeon RD 9436153816 21 Mr. J. Jhatlinga Chairman MRB 9436198903 22 Mr. V Lalremthanga Director RD 9436354394
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Presentation by MART in Stakeholder Consultation Workshop
A-32, 1st Floor, Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995 www.martrural.com
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Objectives of Stakeholder Workshop
Recap of study methodology and process adopted Share findings on livelihoods status Facilitate discussion on • Proposed implementation • Envisaged roles and responsibilities of project partners
Background
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
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Objectives of the study
Assess economic opportunities in farm, off-farm and non-farm sectors 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
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
Key Stakeholders consulted
Key Informants Place
Villagers (Farmers, SHG Members, youth, 10 villages in Aizawl and Village Council members etc.) Lunglei districts
Secretariat & Directorate Officials Aizawl
Govt. Line Dept. Officials and Support Institutions (NABARD, BDA, MAMCO, Aizawl, Lunglei MIFCO, PIGFED, DRDA)
NGOs Aizawl Aizawl, Lunglei, Lungsen, Processors, Traders, Transporters etc. Thingsulthliah, Phullen
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Study villages
District Villages
Sesawng, Tlungvel, Thingsulthliah (Thingsulthliah Aizawl block), Phullen, Thanglailung (Phullen block)
Lungsen, Rangte, Phairuangkai (Lungsen block), Lunglei Mualthuam ‘N’, Haulawng (Lunglei block)
Livelihood Profile
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Demographic Profile
Average number of Number of S. N. Village Name District/Block members per households household 1 Thingsulthliah Aizawl, Thingsulthliah 801 5 2 Phullen Aizawl, Phullen 406 5.5 3 Thanglailung Aizawl, Phullen 151 7 4 Sesawng Aizawl Thingsulthliah 500 5 5 Lungsen Lunglei, Lungsen 511 4.3 6 Rangte Lunglei, Lungsen 142 5.1 7 Phairuangkai Lunglei, Lungsen 285 4.2 8 Mualthuam ‘N’ Lunglei, Lunglei 280 5.1 9 Haulawng Lunglei, Lunglei 506 4.5 10 Tlungvel Aizawl, Thingsulthliah 600 4
Population Profile
Population Parame Mualth Things Lungse Phairu Haulaw Thangl Sesawn Tlungv ters Rangte uam ulthlia Phullen n angkai ng ailung g el ‘N’ h Total 2396 729 1200 2300 1400 4500 2300 870 2200 2714 Male 1121 401 666 1170 727 2322 1181 400 1178 1411 Female 1275 328 534 1130 673 2178 1119 470 1022 1303
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Land based Livelihoods
Crops Cultivation in % of villages % of households involved Paddy 100 54% Maize 100 54% Soyabean 70 20 % Bean 20 5 % Pea 100 25% Arecanut 30 4% Potato 10 1 % Mustard 100 54 % Pumpkin 100 100% Brinjal 100 100% White Pumpkin 100 100% Pineapple 90 5 % Mango 100 40 % Lemon 100 100% Orange 100 60% Turmeric 90 13% Rubber plantation 20 4% Sugarcane 100 4 % Chili 100 50 %
Seasonality
Major Crops Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Paddy P P P P P P P PM PM PM P P Pulses P P P P P P PM PM PM PM P P Arecanut PM P P P P P P PM PM PM PM PM Potato P P P P PM PM PM P P P P P Pineapple P P P P P PM PM PM PM P P P Orange PM PM PM M M Turmeric PM PM PM PM Ginger PM PM PM PM
P- Production, M - Marketing, PM – Production and Marketing
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Marketing channels
Crops Marketable Selling system (% of produce) surplus quantity Govt. VT Haat IB per village (%)
Paddy Nil - - - - Pulses 2 - 10 90 - Arecanut 99 - 90 10 - Potato 95 - 20 80 - Pineapple 95 - 70 30 - Orange 95 - 50 50 - Turmeric 98 - 100 - -
NTFP
NTFPs % of households Average number Storage facility in Value Addition involved of harvest days village possibility per year Bamboo shoot 30-60 90 days No Yes Honey 5-10 60 days No No Fuel wood 10-40 360 days No No Banana 10-40 360 days No Yes Amla 10-40 90 days No Yes Thingthupui 10-40 60-70 days No No Dysoxylum gobarum Baibing 10-40 50 days No Yes Alokasia fornicate Chingit 10-40 50days No No Zamthoxylumrhetsa Tumbu 10-40 360 days No Yes Heliconia angustifolia Telhawng 5-30 50dyas No No Arisaema specciosum Chakawk 10-40 60 days No No
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Seasonality
NTFPs / Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Bamboo shoot (Mautuai) Bil Vuakdup Theikawrak Sunhlu (amla) Balha (banana) Lakhuih (pineapple) Zawngtah Pangkai Pelh Pa (mushroom) Heliconia angustifolia (Tumbu)
Chakawk Diplazium maximum Arisaema specciosum (Telhawng)
Khanghu Dysoxylum gobarum (Thingthupui)
Kawhtebel Vawnva Theipui Fu Baibing
Marketing Channels
NTFPs Average marketable Average selling price Selling system (% of surplus per village in (Rs per unit ) produce) a season (q) Govt. VT Haat IB Bamboo shoot 45 1/piece 90 10 Honey NA 500/bottle(size of bottle) 95 5 750ml Fuel wood 1500 1.5/piece 90 10 Banana 16800 2/piece 80 20 Amla 5 70/kg 95 5 Thingthupui 4.5 20/bundle 70 30 Dysoxylum gobarum Baibing 6 0.50/piece 70 30 Alokasia fornicate Chingit (English name) 4 20/bundle 70 30
Tumbu 6 5-10/piece 90 10 Heliconia angustifolia Telhawng 2 150/kg 90 10 Arisaema specciosum Chakawk 12 10/bundle 90 10 Diplazium maximum
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Animal Husbandry and Livestock
Major Availability in % of % of households involved Livestock villages Fishery 20 Only 7 hhs Piggery 100 80 Goatery 15 1 Poultry-Meat 100 50 Poultry-Egg 0.2 8 Cattle – Milk 30 0.08
• Marketable surplus is generally sold at the village and haat level
Marketing Channels
Product Marketable Selling price Selling system (% of surplus (Rs per unit produce) quantity per ) Govt. VT Haat IB village (%) Fish 60 120 / KG - - 100 - Pork 98 160 / KG - 65 35 - Poultry- Meat 60-80 150-170KG - 60 40 - Cattle - Meat 40 150-180KG - - 100 -
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Non-farm and Services
Service based Availability in % of Place of work livelihoods % of villages households (within village / involved outside) Army 90 6 Out side Permanent Govt. job 100 14 Within village Permanent Private job 70 2 Within village Electrician 80 1.5 Within village LIC agent 30 0.3 Outside Driver 100 8 Within village Plumber 70 1 Within village School teacher (PVT) 100 9 Within village Hotel jobs 40 0.5 & Outside and within village
Infrastructure
Infrastructure / Amenities Availability within the village (%) Distance travelled to avail (range in km)
Road 100 -- Electricity 100 -- School Building 100 -- Irrigation Nil -- Telephone 100 -- Bank 40 7-50 km Post Office 90 7-20 km Transport 100 -- Veterinary extension services 50 7-20 km Skill training centre (type)* 10 0-50 km Milk collection centre Nil 0-125 km Nursery Nil 0-125 km Drinking Water 100 -- Com. Building 100 -- Cold storage Nil 20-125 km Agro. Co-operative 40 0-50km Marketing co-operative 30 0-50km Haat 90 0-7 km Forest Godown Nil 0-125 km Rice mill 100 --
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Skill Status
Skill Available in % of Average number of Use skill for Tradition skill/ villages persons possessing Business purpose acquired skill skill (Yes/No)
Stitching 100 20/ village 8 yes Acquired Embroidery 100 6/ village 2 yes Acquired Food processing 100 5/ village 5.5 yes Acquired Candle making 70 1 / village 1 yes Acquired Handicraft 100 10 / village 7 yes Traditional
Incense stick 100 23 / village 23 yes Acquired making Weaving 100 10 / village 5 yes Traditional
Knitting 100 13 / village 3 yes Traditional Electrician 80 7 / village 2 yes Acquired Carpentry 100 16 / village 12 yes Acquired
Construction 100 7 / village 5 yes Acquired
Driver 100 36 / village 10 yes Acquired
Insurance agent 1 / village 1.2 yes Acquired
Credit Scenario
Most of the financial need is met through relatives and neighborhood. The amount borrowed ranges from Rs 1,000-Rs 10,000. The overall credit scenario is not encouraging and majority of respondents had problems in access to financial institutions and loan sanction. Apart from the long distance to access Bank, policy and process of giving loan to the farmer is complex and many times beyond the seekers ability. Without initial capital fund, land and others resources will remain underutilized. In Thingsulthliah block in Aizawl district, most of financial need is meet by the rural bank branches apart some private money lenders. Farmers face lots of problem in taking loans. They complained that they do not get cooperation from these banks. Banks are not willing to sanction loan without guarantor and security.
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SHG Scenario
Number Average Average Number of SHGs per of loans taken Grant received per savings per village members per SHG SHG (Rs.) SHG (Rs.) per SHG (Rs.) Thingsulthliah 10 58333 145000 100000 (3 SHG) 60000-100000 (7 Phullen 10 2500-200000 180000 SHG) Thanglailung 10 3000-80000 230000 100000 (1 SHG) Sesawng 10 24605 150000 100000 (2 SHG) Lungsen 10 8274 - 100000 (1 SHG) Rangte 10 12569 - 100000 (3 SHG) Phairuangkai 10 9512 5000 (1 shg) 100000 (2 SHG) Mualthuam N’ 10 7670 - 100000 (3 SHG) Haulawng 10 7266 - 100000 (1) 10000 (1) Tlungvel 10 31521 150000 100000 (6 SHG)
Village Level Markets
Types of Facilities Average number Type of products per village Permanent shops in the 17 Grocery village Temporary Shops in the 5 Tea stall, 2nd hand goods village etc. Vendors of the same village 8 -10 Vegetables & Clothes etc. Vendors coming to 10-12 Clothes, electronics & village/day utensils etc.
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Major Haats
Aizawl Lunglei Products traded Thingsulthliah, Lungsen, Rangte, Vegetables, Orange, Phullen, Thanglailung, Phairuangka, Pineapple, Fish, Sesawng, Tlungvel Mualthuam ‘N’, Passion fruits, Limbu Haulawng Squash, animal meat
Value Chain Analysis
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Turmeric: Movement of produce
Retailers of powdered turmeric in Aizawl
Bangladesh Town level processors Rs. 8-9 / kg Trader
Rs. 6-7 / kg Tlabung Trader Village level processors
Rs. 3-5/kg Producer
Gaps and Constraints Interventions Lack of value addition at Turmeric cultivation farm level using improved practices Lack of direct marketing and Collective marketing channel for better returns in both Lack of transportation the districts facility to access Lunglei and Aizawl market Lack of group activity for the aggregation or economies of scale production
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Movement of mandarin orange
Retailers (Haats) Rs. 5-6 / piece
Trader / Commission agents Rs. 2-3 / piece; (Silchar, Aizawl, Seling) Purchases tree from orchard owners
Orchard Owner / Producer Rs 1-2 / piece
Gaps and Constraints Interventions Lack of scientific Promoting cultivation of knowledge among orange using best farmers practices and Use of inferior planting introducing collective materials marketing Scarcity of water during dry period Long distance of orchards from markets
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Pig rearing
Customer
170/kg
Butcher 160/kg 160/kg
160/kg
Town Trader Village Village Haat Trader
Rs. Rs Rs. 150/kg 150/kg 150/kg Pig Rearer
Gaps and Constraints Interventions Lack of best rearing Pig rearing for both practices piglet and pork sales in Financial crunch to start both the districts activity Less experience of managing it as an enterprise Lack of quality piglet
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Poultry No planning related to breed, Introduction of improved scale, rearing modalities variety of birds Largely indigenous breed Integrating veterinary and reared insurance service Traditional mindset of non- Proper rearing skill commercialization Credit support system for Poor Rearing practices meeting life cycle needs High mortality Linking with higher level Lack of knowledge traders Need based selling hence lack of commercial mind set Individual selling Lack of appropriate infrastructure
Incense Stick Making High transportation cost Production of square sticks because of long travel for incense stick making involved from Aizawl to Bangalore Inconsistent raw material (incense stick) supply Bamboo flowering Lack of Advanced skill training Lack of coordination with BDA
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Summary
Produce / Intervention Size of activity suggested Convergence Potential Product Suggested Unit of Funds required RoI (%) activity (Rs) Turmeric Turmeric cultivation 1 ha 32400 119.5 • Town level Traders using improved • Weekly markets practices and Collective • Inputs suppliers marketing for better • Progressive farmers returns in both the • Financial institutions districts • Horticulture department • Marketing agency (MAMCO) Mandarin Cultivation using better 1 acre 267020 -- • Big Traders Orange practices and collective • Inputs suppliers marketing for better • Progressive farmers returns in both the • Financial institutions districts • Horticulture department • MIFCO Piggery Pig rearing for both 6 fatteners • Inputs suppliers including (piglets, pork) piglet and pork sales in and 2 sows Government and private pig farms both the districts • Financial institutions • AH & Vety Department • Marketing agency
Summary
Produce Intervention Size of activity suggested Convergence / Suggested Unit of Funds required RoI (%) Potential Product activity (Rs) Poultry Poultry (Meat)in 250 chicks 296363 8 • Inputs suppliers (Broiler- in both the for broiler 317613 22 including Meat and districts 250 chicks Government and Layer- Poultry for layer private pig farms Eggs) (Egg) in both the • Financial institutions districts • AH & Vety. Department Incense Incense stick 27 quintals 19380 109 Entrepreneurs Sticks making in both Bamboo Development the districts Agency Financial institutions
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Implementation Phase I – Preparedness at the community level Village / Cluster selection Social mobilization and institution building Preparation of business plan Capacity building Phase II – Establish Forward and Backward linkages Developing Market Access Facilitating proper production systems Phase III – Up-scaling Monitoring and evaluation Strengthening Institution Legal aspects
Thank You
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