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Value Chain Strategy of Kinnow in Fazilka District of Punjab

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Value Chain Strategy of Kinnow in Fazilka District of Punjab Value Chain Strategy of Kinnow in Fazilka District of Punjab National Horticulture Research and Development Foundation 47, Janakpuri Institutional Area, Janakpuri, New Delhi, Delhi 110058 March, 2018 1 2 Table of Contents List of tables ............................................................................................................................................ 5 List of figures ........................................................................................................................................... 6 List of appendix ....................................................................................................................................... 6 Acknowledgments ................................................................................................................................... 7 1. Introduction ...................................................................................................................................... 8 1.1. Project Background ..................................................................................................................... 8 1.2. About National Horticultural Research & Development Foundation (NHRDF) .............................. 8 1.2.1 NHRDF Mandate ..................................................................................................................... 8 1.3. Objectives ................................................................................................................................... 9 1.1 Indian scenario ............................................................................................................................ 11 1.1.1 Trade potential ..................................................................................................................... 12 1.1.2 The Processed food products sector in India ......................................................................... 13 1.1.3 Implication of overall food processing on kinnow .................................................................. 13 1.2 Punjab-an overview ..................................................................................................................... 14 1.2.1 Location ................................................................................................................................ 14 1.2.2 Rainfall and climate ............................................................................................................... 14 1.2.3 Major land features............................................................................................................... 15 1.2.4 Occupation............................................................................................................................ 16 1.2.5 Potential of Horticulture in Punjab ........................................................................................ 16 1.3 Need to study .............................................................................................................................. 17 2. Data and Methodology ...................................................................................................................... 18 2.1 Selection of respondents ............................................................................................................. 18 2.2 Growth Model ............................................................................................................................. 19 2.3 Measures of Instability ................................................................................................................. 19 2.4 Marketing analysis ....................................................................................................................... 21 2.5 Marketing cost ............................................................................................................................. 21 2.6 Price spread ................................................................................................................................. 21 2.7 Marketing efficiency .................................................................................................................... 21 2.8 Producer’s share .......................................................................................................................... 21 2.9 Type of marketing costs ............................................................................................................... 22 Transportation charges: ................................................................................................................. 22 3 Weighing charges .......................................................................................................................... 22 Mandi fee ...................................................................................................................................... 22 Commission ................................................................................................................................... 22 Basket and crate charges ............................................................................................................... 22 Grading, sorting, filling and packing charges .................................................................................. 22 Quantity loss.................................................................................................................................. 23 2.10 Lorenz Curve .............................................................................................................................. 23 2.11 Gini coefficient ........................................................................................................................... 24 3 Results and Discussion ........................................................................................................................ 25 3.1 Socio-economic characteristics of respondents ............................................................................ 25 3.2 Status of fruit production in India ................................................................................................ 28 3.3 Inequality in income distribution of kinnow growers (Lorenz curve analysis) ................................ 30 3.4 Establishment of kinnow orchard ................................................................................................. 31 3.5 Status and promotional activities of infrastructure/facility ........................................................... 32 3.6 Status of kinnow orchard ............................................................................................................. 33 3.7 Economics of the cost of cultivation ............................................................................................. 35 3.8 Supply chains for kinnow in Fazilka district of Punjab ................................................................... 36 3.9 Value chains in kinnow in the Fazilka district of Punjab ................................................................ 36 3.10 Value chain functions ................................................................................................................. 37 3.11 General attributes of kinnow traders ......................................................................................... 38 3.12 Marketing margin and producer's share in consumer's rupee and marketing efficiency ............. 41 3.13 Status of an institutional mechanism for organizing production and marketing of kinnow ......... 42 3.14 Distribution of kinnow growers according to their assets, access to information, government support, and planting materials ......................................................................................................... 43 3.15 Major risks in kinnow production ............................................................................................... 46 3.16 Status of a professional organization or producer association .................................................... 47 3.17 Mechanisms for reducing risk .................................................................................................... 47 3.18 Factor in accessing credit ........................................................................................................... 48 3.19 Suggestions for improving kinnow cultivation and marketing in Punjab...................................... 49 4. Suggestions and policy implication..................................................................................................... 50 5. References ........................................................................................................................................ 53 Appendix-I ............................................................................................................................................. 56 4 List of tables Table title Pg. No. Table 1: Production of mandarin (M. Orange, kinnow, orange), in India during 2014- 11 15 Table 2: Potential of horticulture in Punjab 16 Table 3: District-wise area, yield & production of kinnow during 2014-15 in Punjab 17 Table 4: Age groups of selected kinnow growers in Fazilka district of Punjab 25 Table 5: Education level of selected kinnow growers in Fazilka district of Punjab 25 Table 6: Farming experience of kinnow growers in Fazilka district of Punjab 26 Table 7: Farm size of kinnow growers in Fazilka district of Punjab 26 Table 8: Status of
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