RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT Value Chain Analysis Mustard Prepared by: AGRI BUSINESS PROMOTION FACILITY Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis – Mustard i Contents Page List of Tables iii List of Figures iv Executive Summary: Mustard 1 Chapter 1: Introduction 5 1.1. Global Scenario 8 1.2. Indian Scenario 11 1.3. State Scenario 17 1.4. District and Cluster Scenario 18 1.5. Approach to Value Chain Analysis 18 1.6. Resourcing mapping of value chain 19 1.7. Marketable surplus in Cluster 20 Chapter 2: Pre Harvest Management 21 2.1 Major Commercial Varieties Grown in Rajasthan 21 2.2 New Initiatives and Practices 23 2.3 Seasonal Availability Pattern 24 2.4 Land Preparation 25 2.5 Sowing/Planting/Cultivation 25 2.6 Climatic and Soil Requirement 28 2.7 Nutrients Management 28 2.8 Water Management 30 2.9 Weed Management 31 2.10 Pest & Disease Management 32 2.11 Recommended Good Agriculture Practices 36 2.12 Harvesting 38 2.13 Pre Harvest constrains 39 Chapter 3: Post-Harvest Management 41 3.1 Post - Harvest Losses, Harvesting Care and Post – Harvest Equipment 41 3.2 Grade Specification & Grading at Producer level 43 3.3 Major Storage Disease & Pest and their Control Measures 46 Chapter 4: Cost of Production and Net Value Accruals to Producers 54 Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis – Mustard ii Chapter 5: Supply Chain of the Commodity 55 5.1 Seasonal Availability and Price Pattern 55 5.2 Existing Marketing Channels 56 5.3 Alternative Systems of Marketing 63 Chapter 6: Processing Infrastructure availability and Utilization 66 6.1 Processing 66 6.2 Price Build up & Marketing Efficiency Analysis 70 6.3 Stakeholders Share in Consumer Rupee 70 6.4 Marketing Efficiency 71 Chapter 7: Existing Institutional Support and Infrastructure Facility 74 7.1 Support at Cultivation Stage 74 7.2 Support at Post – Harvest, Primary and Secondary Processing Stage 75 7.3 Farmer’s Level Advisory Services 78 Chapter 8: Gap & Constrains Analysis 82 8.1 As Perceived by Producers and others Stakeholders 82 8.2 SWOT analysis of the indicative Value Chain: Mustard 84 8.3 Key constraints in Mustard crop: 85 8.4 PIESTEC Framework 86 8.5 Impact of GST over mustard value chain: 88 Chapter 9: Proposed Interventions & Investments 89 9.1 Intervention areas in the Mustard Value Chain 89 9.2 Indicative Post Intervention Value Chain Map for Mustard 93 9.3 Outcomes of value chain study 97 9.4 Conclusion 98 References 100 Annexure 1: Stakeholder’s Consulted over the Study 101 Annexure 2: List of Central Warehousing Corporations (CWC) in Rajasthan 103 Annexure 3: List of State Warehousing Corporations (SWC) in Rajasthan 105 Annexure: 4 Product wise GST rates of Food Products 110 Annexure: 5 PIESTEC Analysis of Mustard 116 Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis – Mustard iii List of Tables Table 1: Classification of rapeseed and mustard grown in India ................................................................ 5 Table 2: Difference between yellow and brown sarson ............................................................................... 6 Table 3: Difference between Brown sarson and Toria ................................................................................. 7 Table 4: Top Mustard Producing Countries in the World ........................................................................... 8 Table 5: Top five Mustard Seed Producers, Consumers and Traders (exporters) globally .................... 9 Table 6: Trends in World Production and Consumption (million tons) ................................................... 9 Table 7: Trends in Domestic and Consumption (000' tons) ..................................................................... 12 Table 8: State Wise Rapeseed/Mustard Production ................................................................................... 14 Table 9: Major trading Centre's for Mustard State Wise ............................................................................ 17 Table 10: Surveyed Major markets for Value chain Analysis of Mustard ............................................... 19 Table 8: Resource mapping of value chain ................................................................................................... 19 Table 9: Marketable surplus in cluster ........................................................................................................... 20 Table 11: Major Commercial Varieties grown in Rajasthan ...................................................................... 21 Table 12: Developed Varieties of Mustard by DRMR ............................................................................... 22 Table 13: Improved Varieties of Indian Mustard for Specific Environmental Conditions .................. 22 Table 14: Mustard Seed Global Sowing and Harvesting (Monthly) ......................................................... 24 Table 15: Optimum Time of Sowing of Rapeseed, Mustard and Taramira in Rajasthan ..................... 24 Table 16: Seed Rate (kg/ha) and Spacing (cm) Recommended for Mustard and Other Varieties in Rajasthan ............................................................................................................................................................ 25 Table 17: Intercropping Systems with Indian Mustard .............................................................................. 27 Table 18: Yield Loss Percentage in Mustard due to Diseases ................................................................... 40 Table 19: Percentage of Post-Harvest Losses in Mustard ......................................................................... 41 Table 20: Maturity Period after Harvesting for Mustard ........................................................................... 42 Table 21: Agmark Standard of Mustard-Rapeseed Grown in India (Special Characteristics Maximum % by Weight ...................................................................................................................................................... 44 Table 22: Agmark Standards of Oil Seeds (Special Characteristics Maximum % by Weight) ............. 45 Table 23: Major Storage Disease Pests and Their Control Measures ...................................................... 46 Table 24: Mustard Market Report of Rajasthan on 29.03.2017 ................................................................ 55 Table 25: Mustard Prices in Rajasthan in 2017 (Rs/quintal) ..................................................................... 56 Table 26: List of Govt. and Semi-Govt. services providing information on Market Information & Extension ........................................................................................................................................................... 62 Table 27: Benefits and Opportunities of Contract Farming...................................................................... 64 Table 28: Improved Markets of Mustard ...................................................................................................... 71 Table 29: Rural Godowns in Rajasthan ........................................................................................................ 76 Table 30: Tax Structure ................................................................................................................................... 88 Table 31: Intervention plan of Mustard value chain with stakeholders' matrix ..................................... 89 Table 32: State Wise Market Charges and Taxation ................................................................................. 107 Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune Value Chain Analysis – Mustard iv List of Figures Figure 1:Major mustard exporting countries ................................................................................................ 10 Figure 2: Major mustard importing countries .............................................................................................. 10 Figure 3: Major mustard seed crushing countries ....................................................................................... 11 Figure 4: Major mustard producing states .................................................................................................... 12 Figure 5: Rapeseed growing areas in India ................................................................................................... 13 Figure 6:Area and production of rape/mustard seed in India .................................................................. 15 Figure 7: Import During 2011/12 to 2015/16 ............................................................................................ 16 Figure 8: Mustard oil imports (tons) - November to October .................................................................. 16 Figure 9: Mustard meal exports (tons) - April to September .................................................................... 17 Figure 10: Seed yield, water use efficiency, kg/ha-mm(WUE) and oil content of mustard as influenced by various