Livelihood based Agri Business and Market Study in Tripura MART, Noida 0 Livelihood Based Agri Business and Market Studies for North East Rural Livelihood Project Final report, Tripura April 2011 Submitted by MART A-32, 1st Floor, Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995 www.martrural.com
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Livelihood based Agri Business and Market Study in Tripura
municipal market and 1 terminal market) exist in the state that could be used for enhancing
entrepreneurship among the poor producers by undertaking market exposures and capacity building
initiatives.
APMC act will spur private sector investment in the state: Modification of APMC Act by state
government in 2007 offers huge opportunity for greater private sector participation especially the big
corporates. It has attracted several big corporate to enter the state and would promote ancillary units and
micro, small and medium size units in the state.
Livelihood based Agri Business and Market Study in Tripura
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Inclusive social agenda is critical to economy growth: Past experience shows that civil unrest
results into roads blockage and de-linkage with other states adversely impacting the livelihood of the
villagers. The prices of agriculture inputs and commodities shoot up making setting up of new enterprises
unviable. A conducive socio-economic environment will help poor to benefit from economy growth in the
state.
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Chapter 3: Livelihood Profile
The success and growth of poor’s livelihood depends on enabling environment in terms of support
services provided by government and private players, availability of basic infrastructure facilities, training
and skills promotion facilities, marketing information and infrastructure, private sector participation,
promotion of micro, small, and medium enterprises, supportive legal and policy framework, and overall
entrepreneurial environment. At an individual level viability of a livelihood is influenced by
entrepreneurial attitude of the community, organization and management practices and decisions related
to input sourcing, adoption of package of practices, technology, market access, access to finance, and
access to government support for the sustainability of livelihoods.
The following section presents findings from the field survey for existing infrastructure and support
services used by villagers, markets availability and linkages, existing livelihoods pursued by villagers, and
livelihoods pursued by SHGs.
3.1 Existing infrastructure and support services
The table 2 below captures the existing infrastructure available in villages and support services accessed
by villagers.
Table 2: Availability of infrastructures and support services
Infrastructure and
support services
Availability within
village (%)
Availability in
nearby location (%)
Distance travelled
to access services
(in km)
Road 100 - -
Electricity 100 - -
Telephone 100 - -
Transport 100 - -
Drinking water 100 - -
School building 90 10 2-5
Post office 80 20 2-12
Community building 80 20 -
Rice mill 80 20 2-4
Weekly market (Haat) 70 30 2-4
Irrigation (Dug wells) 60 - -
Veterinary services 60 40 2-12
Market yard 20 80 2-10
Nursery 20 80 2-12
Skill training centre 20 80 2-12
Bank 10 90 2-12
Oil expeller 10 90 6-12
Cold storage 0 100 2-55
Source: Field survey
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Basic infrastructure such as road, transport, electricity, drinking water is available in all surveyed
villages. This makes it possible to promote marketing activities and also setting up electricity based
processing units.
Most of the services are located at nearby block or sub divisions such as Sonapura, Bishalgarh,
Rabindranagar, Kathalia and Agartala in West district and at Kumarghat, Dharamnagar and
Panisagar in North district and are easily accessible to villagers.
Due to availability of good roads and transport facility farmers find it convenient to sell directly to
wholesalers located in nearby block and sub divisions.
Telephone and mobile phone facility is available in all villages. This helps progressive farmers in
accessing marketing information and taking right decisions for selling of produce.
Availability of schools in most villages has ensured high literacy levels in the state. Weekly markets
are present in most villages and help poor farmers sell small volumes directly to consumers realizing
better prices.
Availability of electricity has ensured that rice mills are present in most villages and oil expeller units
have also come in few villages. It helps ensuring value addition taking place at the village level and
accruing higher prices to villagers.
Veterinary services are available in many villages through veterinary department however their timely
availability is a constraint making villagers to try traditional practices first. Veterinary services are
curative in nature leading to low adoption of standard practices among villagers.
Skill training centre for stitching and weaving are present in big villages. Though banks have limited
local presence MFI such as Bandhan extend small loans to villagers for consumption as well as small
business activities.
Cold storages are located at Melaghar and Agartala in West district and Kumarghat in North district.
Due to long distances involved small and marginal farmers don’t find it viable to stock horticulture
produce in cold storage and they tend to sell the produce immediately after the harvest resulting in
distress sales. Setting up new cold storages after doing feasibility study will help farmers in stocking
the produce and realize better prices.
Box 2: c ase study of cold storage and transport service provider
Bhuturia Brothers Limited Cold Storage, Agartala
It is a private party run cold storage established in 1949. Total capacity of cold storage for Potato is 2000 MT per season and for fruits it is 10,000 bags. Mainly 4 to 6 agriculture items are kept in the cold storage that includes apple, mussambir, Grapes, Badana. While potato is charged on season basis other items are charged on monthly basis. Charge for potato is Rs. 100 per quintal per season, for apple per bag is Rs 13-14 per bag, mosambi is Rs. 15 per bag, grapes is Rs 8-10 per bag, and pomegranate is Rs 10- 12 per bag. Pineapple and tomato is not kept in cold storage as these items damage other items. Labour charge for loading and unloading is borne by the wholesalers and retailers. Its head office is located at Kolkata. There are 6 staffs and 2 security staff to manage the cold storage. Staff is paid Rs 2000 to Rs 4000 and free accommodation facility. Monthly salary to each security staff is Rs 2800 per month.
Paul Road Ways Transport service, Agartala
It has been operating for over 15 years. It has four wheelers (3-4MT), six wheelers (8.5 MT to 9MT) and 10 wheelers transport facility. It gets order for transporting mainly potato, onion and other vegetables. It carries potato from Guwahati (Beltala Godown) to Agartala and vegetables from Guwahati and Shillong to Agartala. Distance from Guwahati to Agartala is nearly 600 km and Shillong to Agartala it is 450 km. 5 to 10 trucks come daily from Guwahati and Shillong. The transport cost from Guwahati to Agartala by a ten wheeler truck is Rs 28000 to Rs 30000 and Rs 13000 to Rs 15000 by a four wheeler mini truck. Packaging is done by the party that places the order. While cabbage is transported in loose, tomato in wooden box of 27-28 kg each, cauliflower in 30-35 kg bag and potato in 50kg bag. Labour charge for loading is Rs 4 per quintal and for unloading it is Rs 4 per quintal.
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3.2 Markets accessed by villagers
The table 3 below illustrates various types of market facilities accessed by villagers, number of villages
catered by these markets and products available in these markets.
Table 3: Types of market facilities
Types of facilities Availability
in villages
(%)
Number
per village
Products availability
Within village
Permanent shops in the
village
100 5-110 Grocery items, tailor, electrical, rice
mill, hardware, stationeries, cement,
chemist, cloth, and tea stall
Temporary shops in the
village
30 20-100 Fish, vegetables, meat, betel, snacks,
tea stall
Vendors of the same village 20 10-18 Fish, dry fish, vegetables, pig, goat
Vendors coming to village
per day
80 2-15 Milk, cloth/garment, cosmetics,
stationeries, toy, snacks, meat, fish
Outside village
Weekly markets 70 1 Agriculture produce and livestock
Wholesale markets Agartala and
sub divisions
- All households commodities,
agriculture and livestock
Source: field survey
Permanent shops are available in all villages; more number in villages located away from a town
market place. Temporary shops exist in few villages where farmers sell in local haats and seasonal
shops also come up during the harvest season.
Vendors from nearby villages visit most villages and sell variety of consumable items. Traders also
visit from near places and procure vegetables and livestock from haats and villages.
Weekly markets exist in most villages which have been set up with government support. These
markets have cemented platform and sheds making it convenient to run them throughout the year.
Wholesalers for agriculture produces and livestock are located at blocks, sub divisions and Agartala.
Wholesalers at Agartala procure products from within and outside the state and in turn sell to
wholesalers and local retailers. Villagers also sell agriculture produce and livestock products directly
to wholesalers. Most of the wholesalers we met during the study have been in business for over 20
years and pass on the trading skills to next generations. Some wholesalers also act as commission
agents and charge 6-7% commissions from farmers by linking them with wholesalers.
In West District, Agartala is the major market accessed by villagers for sourcing of inputs, households’
commodities and selling of agriculture and livestock based produce. In North District, Dharamnagar
and Silcher (Assam) are such major markets.
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3.3 Livelihood profile
The livelihoods pursued by rural community can be divided into three major categories; land-based
livelihoods, livestock based and non-farm based. Majority of the community is found to be engaged in
livestock rearing (85%) followed by agriculture (68%) and non-farm activities (46%).
Under livestock based livelihoods, majority of villagers are engaged in poultry, piggery, fish culture, goat
rearing, and cow rearing mainly as a supplementary source of income. Pig rearing is popular among tribal
population. Broiler (poultry) and fish culture was found to be primary source of income for many
households. Though fish culture has picked up in last few years but state demand is still met from fish
coming from Bangladesh, Andhra Pradesh and West Bengal.
Under agriculture, majority of villagers are engaged in paddy production where area under production is
highest. The other prominent agriculture activities include vegetable cultivation, potato cultivation and
arecanut plantation. Few are engaged in cash crops such as fruit cultivation (pineapple, water melon,
jackfruit, litchi), rubber plantation, and tea garden. Pulses production has also gain attention in last few
years.
Under non-farm based livelihoods, villagers are engaged in number of skilled and un-skilled livelihoods
and prominent among them are agriculture labour, government jobs, drivers, insurance agents and petty
businesses.
The following section analyses the three categories of livelihoods pursued by the rural community in
surveyed villages.
3.3.1 Land based livelihoods
3.3.1.1 Landholdings
The table 4 below illustrates class of landholdings, percentage of operation land holding, average size of
land holding and the area operated.
Table 4: Classification of landholdings
S.No Class of landholding Number of operation land holding
Average size of land holding (ha)
Area operated (%)
1 Marginal(<1 ha) 247380 (82%) 0.32 44 2 Small(<1-2) 40409(13%) 1.38 31 3 Medium and large (> 2) 13238(5%) 3.38 25 301027 0.60
Source: Economic Review, 2008-09 The above shows that 95% of total operational landholdings in the state are below 2 hectare and these
account for 75% of operated area and are managed by marginal and small farmers. As per economic
review reports the average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to
0.6 ha in 1995-96 due to fragmentation of land arising out of local socio-economic compulsions. This has
impacted the cropping pattern in the state and villagers are showing more inclination towards cash crops,
horticulture and fish culture which give higher income per unit of land compared to paddy cultivation.
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It is found that around 68% of rural households possess agriculture land and 32% households are
landless. Majority of the farmers possess land patta and several of them have encroached upon the
common land.
3.3.1.2 Major crops
The table 5 illustrates major crops grown in villages and percentage of households growing these crops.
Table 5: Major crops in villages
Major crops Availability in
percentage of villages
Percentage of households
involved
Paddy 100 31
Vegetables (except potato) 90 24
Potato 90 15
Areca-nut 60 20
Pulses 50 1
Pineapple 50 8
Rubber plantation 40 2
Fruits (except pineapple) 30 5
Source: field survey
Note: during the survey it was decided that potato and pineapple are important crops from the point of
view of small and marginal farmers therefore information related to these two crops is collected and
represented separately.
Paddy cultivation is the main crop in the surveyed area which is done in all the villages.
Summer and winter vegetables and potato cultivation is done as cash crop in almost all villages by
farmers who are willing to take some risk for higher gains. The major vegetables produced are brinjal,
chili, tomato, lady finger, cabbage, peas, pumpkin and cauliflower.
Areca-nut is grown mainly as a homestead crop. Pulses (moong, blackgram and tuar) production has
picked in last few years after the focus by the agriculture department.
The major fruits grown in the state are mango, orange, pineapple, jackfruit, litchi and banana.
Horticulture department has promoted several crops such as cashew nuts and floriculture however
small and marginal farmers would find it difficult to manage these activities successfully without
proper handholding and marketing support.
Potential for improving horticulture productivity (source: horticulture department)
Tripura is the highest fruit producing state among North East states. However, productivity of Tripura is below the
national average. Against 20MT/hectare national average of productivity Tripura produces 15.7 MT/hectare. The national
average of productivity of pineapple is 27MT/hectare as against state productivity of 18.15 MT/ha. This is due to
traditional practices followed by the famers. The horticulture department has set a target of improving productivity to
44000 plants per hectare from current level of 20000 plants per hectare. Similarly, for mango currently 50 plants are
grown in one hectare that can be scaled to 400 plants per hectare.
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The local people have traditional skills for growing horticulture crops in the state. There is a plenty of
scope to upgrade skills of the growers to make this activity more profitable by enhancing crop
productivities through introduction of new technologies, proper application of fertilizers, use of micro
irrigation techniques, better maintenance of fruit gardens, and high density plantations. In case of
pineapple 20000 plants are grown in one hectare of land that can be scaled up to 44000 plants per
hectare.
It is observed that in last few years few small farmers have shifted from paddy cultivation to rubber
cultivation due to higher and assured returns. However, not many farmers are able to do so as
engagement in cash crops such as rubber plantation, pulses, vegetables and fruits require acquiring
new skills, higher inputs costs, more engagement with market players which poor farmers find it
difficult to do in absence of any handholding and marketing support mechanism.
3.3.1.3 Seasonality
The table 6 below captures the seasonality of major crops grown in villages in terms of production,
marketing and production and marketing season
Table 6: Seasonality of major crops grown
Major crops Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Paddy P2 PM2 PM2 P1 P1 P1 PM1 PM1 P2 P2
Pulses PM2 PM2 P1 P1 PM1 PM1 P2 P2
Areca-nut P P P P P P P PM PM PM PM P
Potato PM PM P P P PM
Vegetables PM PM PM PM PM PM PM PM PM PM PM PM
Pineapple P P P PM PM PM P P P P P P
Fruits PM PM PM PM PM PM PM PM PM PM PM PM
Rubber
plantation
PM PM PM PM P P P P PM PM PM PM
P- Production, M - Marketing, PM – production and marketing Source: field survey
It is observed that agriculture activity is done throughout the year. The intensity of engagement and
area under coverage is higher during the kharif season as many small and marginal don’t have
irrigation facilities.
Paddy is grown twice a year. The first season is January to May which requires irrigation facility and
the second season is July to November which is monsoon dependent. It was observed that majority of
farmers takes only one crop during the monsoon season and few farmers having irrigation facility
takes two to three crops a year.
Vegetables are grown during the summer and winter season. Production period for vegetables last for
three to four months.
Arecanut and jackfruit is mainly grown as a homestead crop. Though the gestation period for
arecanut, jackfruit, and rubber plantation is several years from 4 to 6 years but once the tree matures
it gives production every year for several years. Project can promote long gestation crops as
supplementary source of income but provides regular incomes for several years.
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3.3.1.4 Farming practices
The following section captures farming practices in terms of inputs sourcing, agriculture practices and
technology used, market access, access to finance and government services. It has been observed that
farmer practices depends of several factors such as entrepreneurial attitude, size of land holding, plain or
sloppy land, availability of irrigation facility, access to government schemes, adoption of technology and
package of practices, and linkage with market players. It has been observed that even a landless villager
with entrepreneurial attitude takes land on lease basis, grow cash crops by adopting better practices and
earn higher income compared to a small farmer who owns land but grow paddy mainly for own
consumption.
Story of Kanulal Das, a typical landless farmer in Tripura
Kanulal Das is 45 year old, 7th standard pass and belongs to BPL family. His wife is 35 year old and is also 7 th standard pass. He has two children; elder one is a 15 year old daughter and she studies in 9th standard and son is 14 year old and studies in 8th standard.
Livelihood profile
Kanulal is landless but has been doing agriculture for past 10 years during September to January every year. He takes 1 kani (0.4 acre) of land on lease every year from a local farmer and grows vegetables such as cucumber, radish, green chili and potato on rotation basis which have good local demand. He uses power tiller on hire basis for land preparation as it saves time and labour. Five years back he participated in 3-day training programme by agriculture department at Bishalgarh sub-division and found that the practices suggested there didn’t give him desired yield. Therefore, over the years he has made certain modifications in the package of practices. Though he didn’t feel the training useful but unlike farmers who have not received any training he remembers hands on various inputs by their names and quantity to be applied in the field! He does all agriculture operations by himself with family support and doesn’t hire labours. Except seeds, which he procures from Agartala wholesale market to ensure its genuine, he procures other inputs locally. In case of a pest attack he prefers to take advice from a local retailer from whom he purchases pesticide. It was observed that he was aware of new potato variety promoted by horticulture department that requires 50% less input cost and gives higher productivity. Vegetable provides him nutritional requirement for six month as he keeps a small portion for self consumption and sells the remaining quantity in the market. He sells vegetables to wholesalers at Agratala, which is around 35 km away and uses an auto to take the produce there. Last year he earned a net income of Rs 35000 of which he shared 50% with the land owner.
Activity Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Vegetables
Radish P HM
Chili P P HM
Cucumber P P HM
Potato P P HM
NREGS labour 100 days
Fishing labour 30 Days
P stands for production, HM for harvesting and marketing
Last year he worked for 100 days under NREGS and earned Rs 10000 income. He also gets yearly employment for 30 days
with the village from village fish farmers who hire his services for pond operations, catching fishing and selling at wholesale
market for which he earns Rs 100 per day. For selling fish at Agartala wholesale market he earns Rs 20 per visit and food
expenses. His total income from all sources is roughly Rs 30000 per year.
Family expenses
His yearly household expenditure comes to Rs 21000. His monthly requirement for rice is 50kg per month. He gets 35kg of rice
from government store and procures remaining quantity from the open market retailers. His involvement in multiple activities
ensures that he meets family expenditure and even saves a small amount for unforeseen urgencies.
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3.3.1.4.1 Input sourcing
Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools
from nearby towns. Seeds and fertilizers are available from government department however regular
supply of fertilizer is a major constraint which shoots up its market price. Other inputs are available from
open markets as well. Farmers don’t stock inputs and purchase them on as-and-when-required basis,
mostly in cash. Short supplies of chemical fertilizers coupled with individual purchases of small quantities
make farmers to spend two to three times of the actual price. For example, the actual price for 1kg of urea
is around Rs 5.50 but farmers pay Rs 6 to Rs 10 per kg. Farmers also receive inputs on credits and repay
the amount after the harvest. In such cases retailers charge higher rates for inputs. Purchasing of inputs
collectively by building partnerships with wholesalers well before the production season can help farmers
access inputs at lower rates.
3.3.1.4.2 Agriculture practices and technology used
Majority of farmers use home grown seeds but use of certified and hybrid seed has picked in last few
years. Power tiller, because of its affordability, has picked up in villages for land preparation as it saves
labour cost and time. A number of entrepreneurs have come up in villages that own power tillers and
provide the facility to farmers at Rs 150 per hour. There are variations in the package of practices followed
by farmers resulting in variations in investment cost, productivity and profitability (refer table below) due
to low adoption of practices promoted by government department resulting from limited extension
services in villages. Farmers consult local retailers in case of a pest attack. The one-time training inputs
are not sufficient to change the old practices of farmers which is the main reason for low productivity for
all major crops. For example, paddy yield varies from 5 quintal to 11 quintal per kani (0.4 acre), for chili it
varies from 2 quintal to 4 quintal per kani and similarly for potato it varies from 16 quintal to 35 quintal
per kani. Even within the village there exists such large variation in productivities. Except cleaning, there
is hardly any value addition such as sorting and grading, proper drying and processing done by farmers.
Some entrepreneurs run processing units for rice preparation and oil expeller in some villages and earn
higher income compared to farmers who sell raw produce. For example, 0.4 acre (1 kani) of land gives 750
kg paddy that after processing gives 450 kg of rice and is sold at Rs 18-20 per kg where as paddy is sold at
Rs 800 to 1000 per quintal. Similarly, one tree of areca-nut roughly gives 300 nuts (raw) and sold for Rs
120 to Rs 130. After drying 300 nuts becomes roughly 2 kg and is sold at twice the amount at Rs 250.
Continue ……
Issues and concerns
Kanulal achieves low productivity due to improper package of practices adopted, higher input costs, lack of awareness on
latest appropriate technologies, higher marketing overheads due to individual procurement of inputs and selling of produce.
Any uncertainly on government support to NREGS and fish promotion in the state will have an adverse impact on his family
income. Kanulal can benefit by tying up with other fellow farmers for procuring inputs to optimize costs and selling collectively
to gain higher incomes. Capacity building support and exposure visits to successful farmers in the local area can help him
adopt better package of practices.
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Table 7: Practices adopted by farmers
Farmer practices Farmer 1 Farmer 2 Farmer 3
Location West District West District North District
Household members 8 6 4
Total landholding 0.6 acre 2.8 acre 0.6 acre
Land ownership Leased Self Self
Land used for potato
cultivation
0.4 acre 0.4 acre 0.4 acre
Engagement in activity November –January November –January November –January
Daily involvement 2 hours 2 hours 2 hours
Sourcing of seed Private Agriculture office Agriculture office
Use of organic manure No Yes Yes
Application of chemical
fertilizers
Yes Yes Yes
Inputs cost (Rs) 18190 14970 21750
Production (Kg) 3200 2400 3500
Selling to Sub division
wholesaler
Sub division
wholesaler
Consumer
(Weekly haat)
Price received (Rs) 12 8 10
Net income 19490 4230 13250
Profitability 103% 28% 61%
Source: field survey
Farmers who track market prices and sell directly to wholesale markets and consumers in haats get higher
prices compared to farmers who sell immediately after the harvest. Training on improved farming
practices through series of exposures, interactions with best practitioners and use of certified seeds can
help crop productivities. A simple value additions in terms of proper drying, sorting and grading can help
farmers realize higher incomes.
3.3.1.4.3 Access to finance
Money lenders are the traditional source of financer to rural community and they charge 5-10% per
month. Micro finance agencies such as RGVN, Bandhan and Basix operate in the state and provide loan
facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation
activities. Bandhan was found to be operating in rural area. The effective rate of interest to farmers comes
to 30% per annum though the flat rate is just 10-15%. Villagers repay the loan on weekly basis. SHGs
promoted by DRDA also extend loan to its members for both consumption and business purposes
however these are small loans that don’t meet business needs of the economic activity. DRDA extends
SGSY schemes to poor to start various income generating activities that includes bank loan and subsidy
component. In absence of proper handholding and marketing support SHGs find it difficult to manage the
activity successfully and therefore find difficulties in timely repayment of bank loan.
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3.3.1.4.4. Market access
The table 8 below captures marketable surplus available after consumption fo major crops grown locally.
Table 8: Marketable surplus for major crops
Major crops Volume consumed in village (%) Marketable surplus quantity per
village (%)
Paddy 74 26
Arecanut 44 56
Pulses 39 61
Potato 20 80
Fruits 18 82
Vegetables 4 96
Tea plantation 3 97
Pineapple 1 99
Rubber plantation 0 100
Source: field survey
Except paddy, other major crops are sold by the farmers. Paddy is grown mainly for self consumption
purpose however small and marginal farmers also sell small quantities immediately after the harvest for
cash requirement and are compelled to purchase it back from open market to meet family requirement. A
small percentage of vegetables, fruits, pulses and areca-nut is consumed in villages and excess marketable
quantity is sold. The state is a net importer for pulses, vegetables, potato and paddy. The excess
marketable quantity of rubber, tea and pineapple goes outside the state while other products are
consumed within the state only.
Table 9: selling system of major crops
Major crops Selling system (% of produce) Sale price
Within village Traders Haat (Rs per quintal)
Paddy 4 80 15 800-1000
Arecanut - 20 80 6000-9000
Pulses - 100 - 3000-5000
Potato 5 95 - 700-1300
Fruits - 100 - 2000-3000
Vegetables 3 82 15 1000-3000
Pineapple 2 98 - 3-5 per piece
Rubber plantation - 100 - 14000-16000
Source: field survey
Farmers sell the agriculture produce to traders within village, nearby block or sub divisions markets and
at Agartala wholesale markets. Farmers also the produce directly to consumers in local haats (weekly
markets) and villagers. The price of agriculture produce varies on daily basis and depends on supply and
demand pattern. The above table shows wide variations in prices received by farmers and it depends on
timing and place of sale. The prices are generally low immediately after the harvest. Creation of proper
storage facilities in villages and understanding of demand pattern can help farmers realize better prices.
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3.3.2 Livestock based livelihoods
3.3.2.1 Major livestock
The table 10 below illustrates major livestock activities pursued by villagers and percentage of households
engaged in them.
Table 10: Major livestock activities
Livestock Availability in
percentage of villages
Percentage of households
involved
Fishery 100 12
Poultry 100 22
Cow rearing 90 18
Goatery 70 25
Piggery 30 3
Source: Field survey
It is found that livestock rearing is done in all villages in the state. Piggery, poultry and goatery are
done as subsidiary activity on a small scale only.
Fishery is being promoted in all villages with government support. It is being done on individual basis
as well as on group basis promoted by the DRDA under SGSY scheme. Similarly backyard poultry is
done in all villages where farmer keeps upto 10 birds. Some progressive farmers in most villages have
started broiler units as well and they rear 400 to 500 birds.
Cow rearing is also done in almost all villages and villagers keep 1-2 local cows only. Similarly goat
rearing is also done in majority of villages and some families are engaged exclusively in goat trading.
Piggery is done in few villages and is popular among tribal community.
3.3.2.2 Seasonality
The table 11 below captures the seasonality of major livestock activities pursued in villages in terms of
production and marketing season.
Table 11: Seasonality of major livestock activities
Livestock Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
Fish culture P P P P P P P P P P P P
M M M M M M M M M M M M
Rising poultry demand in the state
The state meat market is 50% broiler, 30% pork, 8% goat and remaining for others. Broiler has picked in last decade in the
state as it is cheaper alternate to local poultry birds, goat and pork. There are nearly 2500 broiler units in the state. Each unit
keep 500-20000 birds and a total of 8 lacs birds are produced every year. Live weight of 1.5 to 1.7 kg after dressing is achieved
in 30-35 days of production cycle. 30% wastage is there after dressing. Market rate is Rs 140 per kg in Agartala and it would be
Rs 125 to Rs 130 per kg in Kailashar. There is one broiler association in the state that regulates the price of bird. In Agartala,
50% supply comes from the West district and the other 50% supply come from the remaining three districts.
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Piggery P P P P P P P P P P P P
M M M M M M M M M M M M
Goatery P P P P P P P P P P P P
M M M M M M M M M M M M
Poultry P P P P P P P P P P P P
M M M M M M M M M M M M
Cow rearing P P P P P P P P P P P P
M M M M M M M M M M M M
P- Production, M – Marketing Source: field survey
All livestock are reared throughout the year. Marketing is also done throughout the year. All livestock
activities can be started in any season during the year.
Fish culture is mainly rainfed as 40% water bodies in the state are non-perennial. There are two types
of water bodies- open water bodies include river, lake where fishery department leaves fingerlings
that help poor in fishing activity; and other category include tank and pond that is used for fish
culture. As per fishery department presently the state has 157688 water bodies for pisciculture with
total area of 20521.07 ha and offers scope for its promotion in the state.
The broiler unit has a production cycle of 35 days. A cow gives milk for 6-7 months only in a year and
therefore a minimum of two cows can be promoted per family to provide regular income.
3.3.2.3 Livestock practices
The following section captures farmer practices in terms inputs sourcing, livestock practices and
technology used, market access, access to finance and access to government services. It has been observed
that livestock practices depends of several factors such as entrepreneurial attitude, availability of land,
availability of fodder, government support, adoption of better animal rearing and management practices,
and linkage with market players.
3.3.2.3.1 Input sourcing
Except for fish culture, inputs for other livestock mainly fodder is available within the village itself as
byproduct of agriculture produce and wastages from the households. Fish farmers procure fingerlings
from local markets and government hatcheries. Inputs such as mustard oil cake, quick lime and fertilizers
are available from open market and government stores. Inputs costs are high in the state compared of
other parts of India and these inputs come from outside the state and include high transportation cost.
Inputs are sometimes available on credit without interest and farmers repay it after the harvesting.
3.3.2.3.2. Production practices and technology used
Most families keep local varieties of livestock and follow traditional rearing methods and these are mainly
supplementary source of income to the family. There is low adoption of standard package of practices
suggested by the government department due to limited extension services. Some progressive farmers has
started rearing improved varieties of livestock such as Jersey cow, broiler units, and cross bred pigs that
motivates fellow farmers . Fish farmers have learnt latest practices at model fish farms promoted by the
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fishery department. Livestock rearing is less intensive activity and is managed by the farmer itself.
Whereas male members are engaged in procurement of inputs, production and marketing, women and
sometimes grown up children are involved in production activity. Fish farmers employ local villagers to
manage pond operations and pay them Rs 100 to Rs 150 per day. Since inputs costs are high so farmers
use local substitutes. Progressive farmers use latest technologies and become role models for others in the
village. The overall livestock productivity is low and even among the same activity farmers there is huge
difference in productivity levels (refer the table below for fish farmers). For example, local cow on an
average gives 2-3 litres per day whereas in the same environment Jersey cow was found giving 8 liters
milk per day.
Table 12: farmer’s practices for fish culture
Fish culture practices Farmer 1 Farmer 2 Farmer 3
Location West District North District North District
Household members 8 6 4
Total landholding 2 acre - 3.2 acre
Land ownership Self SHG Self
Land used for fish culture 0.4 acre 2.6 acre 0.4 acre
Engagement in activity November –January November –January November –January
Sourcing of seed Govt./Private Own Private
Production (Kg) 250 3545 746
Selling to Wholesaler Wholesaler Wholesaler
Price received (Rs) 70 105 85
Inputs cost (Rs) 18190 14970 21750
Net income (Rs) 19490 4230 13250
Profitability 233% 190% 211%
Source: field survey
3.3.2.3.3 Access to finance
As shared in the previous agriculture section villagers depend upon local money lenders for starting or
expanding livestock activities. Micro finance agencies such as RGVN, Bandhan and Basix operate in the
state and provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for various income
generation activities including livestock activities. SHGs also extend loan to its members for livestock
activities. DRDA extends SGSY scheme to poor to start various income generating activities that includes
both bank loan and subsidy component.
3.3.2.3.4 Market access
The table 13 below illustrates the marketable surplus for major livestock activities pursued by villagers.
Table 13: marketable surplus in livestock activities
Livestock Volume consumed in village (%) Marketable surplus in village
(%)
Cow milk 85 15
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Poultry 19 81
Fish 12 88
Goat 10 90
Pig 5 95
Source: Field survey
Except milk, other livestock are sold by the farmers. Milk is produced mainly for self consumption
purpose and is consumed within the village itself. Other livestock are reared mainly for selling purpose
and only small quantities are consumed within the village itself. The state is a net importer for fish and
milk.
Table 14: Selling system for livestock activities
Livestock Selling system (% of produce) Sale price
Within village Trader Haat (Rs per kg)
Fish - 96 4 70-160
Pig 4 72 24 125-135
Goat 10 70 20 180-220
Poultry 1 95 4 110-150
Cow milk 100 - - 20-28 per litre
Source: Field survey
Table 14 above shows that farmers sell fish in weekly markets and nearby block and sub division markets.
Due to high demand of fish the entire catch is normally sold in weekly haats and nearby daily markets
within the block area. Big farmers also sell in nearby wholesale markets at sub divisions through
commission agents and pay 6-7% commission. All transactions are done in cash. Piggery, poultry birds
and goatery is sold to traders and also in local haats. Milk production is low in villages and the entire
quantity is sold within the village itself. There is a good scope of improving cattle productivity by
extending proper extension services.
The prices of various livestock commodities varies hugely and depend upon villagers’ understanding of
supply and demand pattern, timing of sale, place of sale, sale directly to consumers or through channel
partners. For example, fish price is observed from Rs 70 to Rs 160 per kg that depends on variety and size
of fish, local fish or fish coming from outside the state. Similarly, for milk which is sold within the village
itself the variation was little less and ranged from Rs 20 to Rs 28 per litre. In case of broiler birds the
association located at Agartala regulates the bird prices in the state.
Organizing poor for collective sourcing of inputs and marketing, adoption of better animal management
and rearing practices, marketing information, and field based handholding support can help poor
villagers realize higher returns from livestock activities.
3.3.3 Non-farm based livelihoods
The table 15 illustrates major non farm activities pursued by villagers, percentage of households involved,
their place of work and whether the skill is traditional or acquired.
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Table 15: Major non farm activities pursued by villagers
Non-farm
activities
Availability in
percentage of
villages
Percentage of
households
involved
Place of work Traditional/
acquired skill
Stitching 100 27 Within Village Acquired
Laborer 100 19 Village/Outside Acquired
Electrician 100 1.2 Within Village Acquired
Insurance agent 100 2.7 Village/Outside Acquired
Driver 100 5 Within Village Acquired
Government service 90 6.4 Outside village Acquired
School teacher 90 1.3 Outside village Acquired
Incense stick
making
70 16 Within Village Traditional
Army 60 0.6 Outside village Acquired
Private service 60 3.0 Outside village Acquired
Hotel jobs 60 0.5 Outside village Acquired
Knitting 40 8 Within Village Traditional
Police 40 0.4 Outside Acquired
Plumber 40 0.1 Within Village Acquired
Weaving 30 8 Within Village Traditional
Embroidery 30 5 Within Village Acquired
Carpenter 20 0.5 Village/Outside Traditional
Food processing 10 0.1 Within Village Acquired
Source: Field survey
Rural community is engaged in number of non-farm activities in villages. Labours, electricians,
insurance agents, drivers and tailors are present in all villages. A large number of women have been
trained in stitching activity but most of them do it for their own family requirement and occasionally
get work from fellow villagers.
In terms of involvement of households predominant activities include stitching, agriculture labour
and incense sticking making. Villagers shared that incense sticking making has come down over a
period due to difficulties in getting bamboos.
Women are mainly involved in stitching, knitting and weaving activity on a small scale and mainly
serve family requirement and on request serve other families on payment basis.
Most of the non-farm activities require acquiring new skills. Most of the skills for non-farm activities
have been acquired first by working as an apprentice and then indulging in learning by doing
approach. The journey to becoming a skilled person involves long years. DRDA under SGSY schemes
has imparted skills for stitching, food processing, and incense stick making and weaving.
Regular jobs in government sector and private sector make villagers migrate to town, cities and
outside the state and become an important source of income to villagers through remittances.
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Villagers have voiced demand for skill training to tap emerging local opportunities in the areas of
electrical repair, automobile repair, mobile repair, cobbler, drivers etc. to enhance their income.
Emerging sectors such as banking, health and hospitality, banking and insurance will offer low skilled
opportunities which poor youth can tap by undergoing skill based training.
3.4 SHGs and livelihoods
SGSY was started in 1999 to enhance employment among the poor. The SHGs are organized by
swarojgaris from the BPL list approved by gram sabha. Till 2008-09, there were 27010 SHGs in the state.
West district had highest number of SHGs in the state at 11131 and North district had 4506 SHGs. On an
average an SHG has 10-20 members. SHG meet once every month and some even twice a month. One
group saves Rs 30 to Rs 50 per month per member. Group savings are used for inter-loaning. SHGs
discuss issues related society, involvement of members, group unity, livelihoods and marketing
challenges.
Both financial and non-financial supports are provided to SHGs. DRDA provides basic training to SHGs
on accounts management, conducting group meeting, writing of proceedings, and maintenance of records
through block support. Line department resource persons provide skill development training that has
marketing component as well. External resource persons and experts are also hired to impart training on
need based topics. SIPARD a state level training institution provides training on all topics related to rural
development. SHGs are engaged in fish culture, piggery, goatery, cow rearing, handicraft, poultry and
agriculture, duckery, rubber plantation, tent house, incense stick making, betel vine. As per information
shared by SHG members that their monthly income ranges from Rs 2500 to 3500 per month per member.
The issues faced by them in successfully managing the livelihood activities include high inputs costs, low
productivity, low volumes, limited holding capacity of agriculture produce, low adoption of package of
practices, and marketing information and linkages. These issues can be tackled by providing proper
extension services to them and marketing handholding support. This would require that facilitating
Case study of Baba Saheb SHG, West District
Baba Saheb women SHG was formed in August 2006 in Ishan Chandra Nagar village. There are 12 members in the WSHG.
Each member saves Rs.30 per month. Under SGSY scheme group got Rs.1 lac after 1st gradation in 2008 as 100% grant.
After 2nd gradation in 2010 it got another Rs.2.5 lac as bank loan. Group started piggery activity as supplementary source of
income with this financial support. Group got technical training by veterinary department for managing the activity. The cost
of one piglet is Rs.800-1200. Feed is available in the local market and cost Rs.200-300/piglet/month. Immunization is done 2
times a year. Pig rearers follow stall feeding practices. Pig rearing is a less intensive activity and group member spends only
one hour every day. Disease is the common problem faced by group members and one time training received by them didn’t
result into proper adoption of package of practices. Every time the animal husbandry doctor visits he charges fee that
discourage members to immediately call the doctor in case of disease problem that results into fatal cases. Also, pigs have
not been insured by SHGs and exposing them to higher disease risks. Last year seven piglets died of disease that
discouraged them to repay the loan component regularly. Pigs are sold locally as marketing is not a problem due to huge
local demand. Group members sell to local traders who visit village regularly to procure pigs. After two years selling price of
a grown up pig is around Rs 20000. The group would require training on animal management practices, vision building,
record keeping, activity economics, insurance cover, and exposure visits to successful entrepreneurs in the local area to
manage the activity in a sustainable manner.
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agencies such as DRDA needs to appoint sufficient number of staff with proper marketing experience and
managing livelihoods on large scale. The managerial capacity to mobilize linkages with various line
departments and resource agencies and extending services in villages is important to sustain their
livelihoods.
As per NABARD document, in 2009-10 7997 SHGs were cumulatively financed by 6 banks through 263
bank branches and disbursed Rs 4102.07 lacs with support of 11 SHPIs. However, farmers expressed that
credit facility though available is not adequate as compared to actual requirement. Tenant farmers and
farmers with title of the land in deceased father or forefathers names do not get KCC to avail bank loan for
cultivation. One of the major constraints in up-scaling SHG-Bank linkage programme in Tripura was lack
of awareness on basic concepts of SHGs and high influence of subsidy oriented SGSY. With an objective of
ensuring greater financial inclusion and increasing the outreach of the banking sector, the RBI has
permitted banks to use the services of NGOs/SHGs, MFIs and other civil society organizations as
intermediaries in providing financial and banking services through the use of Business Facilitators (BF)
and Business Correspondents (BC) models. NABARD has sanctioned a pilot project on utilizing Farmers
Clubs as Business Facilitator to Tripura Gramin Bank in July 2009. Micro finance is a necessary but not
the sufficient condition to promote micro enterprises among the poor. Poor needs a range of business
development services through field based handholding support in terms of linkages with raw material
providers, technical and marketing skills such as costing and pricing, negotiation and market exposure,
and vision building.
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Chapter 4: Value Chain Analysis
4.1 Introduction
Value Chain development is a process, which analyses every stage of the product or services i.e. from
production to the end consumer and endeavours to build the competitiveness across the chain. Value
chain analyses involves identifying product movement, number of channel partners involved and roles
performed by them, value received by each of the channel partners, constraints faced by each player in the
chain. Value chain analysis helps to identify opportunities for value addition at every stage of the product
from production to its marketing, prices at every stage and corresponding value addition possibilities,
assess infrastructure requirement and capacity building needs of producers to achieve higher value in the
chain.
Activity selection for value chain analysis
Following figure 3 captures the flow of key steps performed to select the five potential products for
conducting value chain analysis;
Figure 3: Key steps involved in selection of value chain activities
Task performed Key Steps Shortlisted products/commodities
Review of regional implementation plan provided by the World Bank
Study secondary reports and website
Step 1 Literature review
Incense stick making, bamboo shoot production, floriculture, piggery, fishery, puffed rice preparation, poultry, rubber plantation, milk production, handicrafts, vocational training in service sector, agri processing units
Village visits in both districts and market survey
Meeting with resource agencies, line department officers at state and district level
Review of secondary reports
Step 2
Field visit and meeting with
resource agencies in Tripura
Fish culture, potato cultivation, pulse cultivation, vegetable cultivation, pineapple cultivation, piggery, areca-nut, goatery, rubber plantation and cow rearing
Meeting with World Bank staff and Project Director, NERLP at New Delhi
Analysis of secondary reports
Step 3 Consultation with PD, NERLP and World Bank staff
Fish culture,
Potato cultivation,
Pulse cultivation,
Vegetable cultivation,
Pineapple cultivation
Chapter 3 captured community’s engagement in long list of livelihoods across agriculture, livestock and
non-farm sectors. Based on the discussion with Project Director, NERLP and World Bank staff at New
Delhi criteria (engagement, interest and capacity of the poor, possibility of engaging large number of poor,
market demand, gestation period) was shared to shortlist five products i.e. potato, vegetables, fish,
pineapple and pulses for carrying out value chain analysis. All the five shortlisted produce are suitable for
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both project districts. Activities such as rubber plantation and areca-nut have not been considered as it
involves long gestation period and can be promoted as supplementary source of incomes. Project can also
promote piggery, areca nut cultivation, rubber plantation, dairy and goatery among the poor in both
project districts.
Field experience shows that there is very little value-addition taking place at the producer level in villages
leading to a large chunk of produce moving out of the village in the raw form. Value addition is generally
taken up by players with high capital base located at higher order markets. However, simple aggregation
at village level with rudimentary value addition activities like cleaning, sorting, grading, drying etc. can
fetch higher price to the poor rural community.
4.2 Summary of suggested interventions
The table 16 below illustrates summary of suggested interventions in terms of size of activity suggested,
convergence and partnership potential and key support to be provided by the project to implement value
chains.
Table 16: Summary of suggested interventions for value chain activities.
Intervention Size of activity suggested Convergence and partnership
Key support to be provided by the Project
Produce / Product
Suggested Unit of activity
Capital requirement (Rs)
RoI (%)
potential
Potato Potato cultivation using TPS and improved practices in both project districts Other option is potato cultivation using kufri jyoti and kufri chandramukhi seed variety
0.4 acre 15815 115 Wholesalers and retailers Weekly markets Inputs suppliers Progressive farmers Financial institutions Horticulture department Marketing agency
Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building on improved package of practices, Finance linkage Market exposure Market linkages Handholding support
Vegetable Cultivation
Chili cultivation in both project districts
0.4 acre 12050 103 Wholesalers and retailers Weekly markets
Organise poor in SHGs, federation and producer group
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Intervention Size of activity suggested Convergence and partnership
Key support to be provided by the Project
Produce / Product
Suggested Unit of activity
Capital requirement (Rs)
RoI (%)
potential
Other options are cabbage, cauliflower, tomato and radish cultivation
Inputs suppliers Progressive farmers Financial institutions Horticulture department Marketing agency
Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support
Fish Composite fish culture in both project districts Other options are fish culture with multi-stocking, pig cum pisciculture, poly culture of prawn and duck cum pisciculture using multi stocking
0.4 acre 62326 41 Wholesalers and retailers Weekly markets Inputs suppliers Progressive farmers Financial institutions Fishery department Marketing agency
Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support
Pineapple Pineapple cultivation using improved package of practices in
Organise poor in SHGs, federation and producer group Introduce
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Intervention Size of activity suggested Convergence and partnership
Key support to be provided by the Project
Produce / Product
Suggested Unit of activity
Capital requirement (Rs)
RoI (%)
potential
both project districts Other option is juice making
NERAMAC, private processing units Progressive farmers Financial institutions Horticulture department Marketing agency
collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support
Pulses Black gram using improved package of practices in both project districts Other options are moong, lentil and pea cultivation
0.4 acre 6195 151 Wholesalers and retailers Weekly markets Inputs suppliers Financial institutions Progressive farmers Agriculture department Marketing agency
Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support
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4.3 Potato cultivation value chain
4.3.1 Background
Highly popular worldwide, potato is a versatile,
carbohydrate-rich food prepared and served in a variety
of ways. Freshly harvested potato contains about 80%
water and 20 percent dry matter. About 60 to 80 % of
the dry matter is starch. On a dry weight basis, the
protein content of potato is similar to that of cereals and
is very high in comparison with other roots and tubers.
In addition, potato is low in fat, rich in several
micronutrients, especially vitamin C. If eaten with its
skin, a single medium sized potato of 150 g provides
nearly half the daily adult requirement (100 mg) of
vitamin C. Potato is also a moderate source of iron, and
its high vitamin C content promotes iron absorption. It
is a good source of vitamins B1, B3 and B6 and minerals such as potassium, phosphorus and magnesium,
and contains folate, pantothenic acid and riboflavin. Potatoes also contain dietary antioxidants, which
may play a part in preventing diseases related to ageing, and dietary fibre, which benefits health. In terms
of total production of energy for human consumption, potato is one of the five major crops in the world,
others being wheat, rice, maize and barley. On an average, potato yields two times more calories per unit
area than any other cereal. (Source: www.potato2008.org)
Global potato production for the year 2005 was around 322 million MT, of which China dominated the
World by contributing around 23% followed by Russian federation, India (8%), USA and Germany. Potato
chips contribute around 85% to Indian snack food industry, one of the largest snack markets in the world
and growing at the rate of 10%. India just exports around 0.5% of the total worlds export figuring around
7200 tons of potatoes to countries like Sri Lanka, Nepal, Mauritius, Singapore, UAE and Japan as most
production is consumed in the country itself. Market influencing factors include fluctuations in the
production levels in the country, fluctuations in the weather conditions, prices of competitive vegetables,
demand level from the various areas of the country, development stages of the crop, transportation
charges, hoarding and black-marketing.
As per horticulture department the vegetable cultivation has increased by about 62% in the last 7 years.
One of the reasons for this is the decline in average landholding per farmer by over 50%; from 1.25
hectare in 1976-77 to 0.6 hectare in 1995-96 (economic review 2006-07 and 2008-09, Tripura). Due to
fragmentation of landholding, farmers have shifted to horticulture crops. Potato is one such crop that is
associated with agricultural diversification in last few years. The productivity of area under potato
cultivation has marginally improved in the last few years due to prevalence of peasant and tribal mode of
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The state is a net importer of potato; around 70% (45 to 60 MT) of supplies per day at Agartala
wholesale markets come from West Bengal and the remaining 30% demand is met from local
production.
Majority of the local population consumes potato. Agartala with a population 1,89,327 as per 2001
census (3.7 lakh after municipal expansion in 2004) is a huge market for potato consumption and
depends on potato coming from both within the state and from West Bengal.
Producers get only 50% of the value paid by the consumers; The remaining is taken by various
channel partners.
There are 474 village level primary markets in the state where farmers sell local potatoes directly to
the consumers.
From wholesale market potato goes to two districts i.e. South Tripura and West Tripura. In the
remaining two districts of Dhalai and North, potatoes come from Dharmanager wholesale market
(North Tripura) and Silchar (Assam) wholesale market.
4.3.5.2 Stakeholders and their roles
4.3.5.2.1 Input suppliers
The main inputs required for potato cultivation are seeds, fertilizer, pesticides/weedicides, and agri
implements. The suppliers of these inputs are
located at block, sub division level and at Agartala
wholesale markets. All inputs are available in the
state and except TSP seeds, which are available
locally, all other inputs are procured by wholesalers
from other states. Agriculture department provides
TPS and other inputs at subsidized rates to farmers.
4.3.5.2.2 Farmers practices
4.3.5.2.2.1 Input sourcing
Farmers procure inputs from government stores and also from nearby open markets. Farmers face
problems in timely procurement of inputs from government stores and therefore they pay upto 1.5 to 2
times of market prices particularly for chemical fertilizers. Farmers pay 50% upfront and 50% on credit
and repay it after the harvest. Famers procure TPS seeds from local government offices. Farmers have
reported that quality of seeds available from open markets is sometimes not good so they prefer to buy it
from government sources or from big wholesalers in Agartala and sub divisions. Irrigation is done two
times from river or ponds. Farmers either use their own pump sets or hire it. Big farmers have installed
electric run mechanism for lift irrigation and they pay nominal amount towards annual electricity
charges.
What is True Potato Seed (T.P.S.)
Tripura potato implies tiny botanical seeds of potato.
Potato, which is known as True Potato Seed, is obtained
by the hybridization of two parental lines of potato. It is a
substitute of the traditional tubers.
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4.3.5.2.2.2 Production practices and technology used
Potato is grown in plains and therefore its cultivation is not undertaken in areas of undulating land.
Potato cultivation is done in 0.2 acre to o.4 acre of land from November to January. There is an increasing
trend towards using power tiller for land preparation that is normally used two times as it saves time and
is affordable. Small farmers also use bullocks for ploughing purpose.
Farmers practice lifts irrigation. Irrigation is required twice – at the time of land preparation and during
the production phase. Farmers use hybrid TPS and certified potato seeds available in the market. Some
farmers directly sow seeds and some prepare seed bed and transplant the seedlings. Every farmer follows
line sowing and maintains distance between lines and between two plants. Generally True Potato Seeds
(TPS) are used by farmers which are available from Government stores. TPS can be grown three times a
year. Farmers from their first and second harvest store some potatoes in cold storage for use in next
season as seeds. Sowing time is November and December and the harvesting period is January and
February. Other varieties grown include Chandramukhi and Joyti grown in West Bengal. Some farmers
even follow inter culture and grow sweet gourd and pumpkin in the land left between two lines. Potato
farmers use both chemical fertilizers and organic fertilizers (cow dung and mustard oil cake as organic
manure) at the time of land preparation. Some farmers use bio-fertilizers. Urea is used in split doses once
at the time of land preparation and next after the vegetative growth of the plant.
The adoption of scientific practices is low among small and marginal farmers which results in lower
yields. For example, against the government recommended dose of 9.60 kg of phosphate in 0.4 acre of
land, potato farmers use almost four times (35.48 kg) resulting in higher input costs as they believe that
Package of practices for production of Potato using T.P.S. (source: Agriculture department)
Raising Seedling: Seeds are sown at 0.5 cm depth in raised nursery beds (6 inches or 15 cm) prepared to good tilt with finely powdered dry cowdung in rows at 10 cm apart under shade and it is watered. Apply foliar spray 0.01% Urea solution from 15th day after sowing on alternate days till the seedlings are ready for transplanting (25 to 28 days) with 3 to 4 leaf stage. Care should be taken against termite and damping-off.
Cultivation in the main field: Prepare the main field to a good tilt. After leveling apply fertilizers in 75:100:150 kg. NPK per hectare. Make ridges (6 inches or 15 cm. height) furrows at 50 to 60 cm. apart in east - west direction. Irrigate the furrows to 3 inches or 7.5 cm height. Transplant the seedlings on the next day on the northern side of ridges at half the height at 15cm apart. On 35th day apply 75 kg nitrogen per hectare after weeding and earthing up is done in such a way that the plants come up on top of the earth. Provide irrigation as and when required.
What is tuberlet? Small tubers upto 20 grams size used as seed tuber. Seed tuber requirement could be brought down to one-third by using tuberlets.
TPS tuberlet production practices: At present there are two methods in practice for producing seedling tubers in bed 1. Single Row Method 2. Double Row Method
Single Row Method: Prepare beds of 6 inches or 15 cm. height, 1 mt. width and according to convenient length" at 0.75 cm apart. Bring to good tilth mixing with finely powdered well-rotten dried cow dung. Apply Urea, S.P and M.O.P. @ 20 gms, 60 gm & 25 gm./ sq.mt. respectively as basal dose. Sow 2-3 seeds per hole at 0.5 cm. depth with 20 cm. X 5 cm. spacing. Provide shade to avoid scorching sun and irrigate the beds with fine rose cane as per necessity. Earth up with the mixture of finely prepared soil and cow dung along with urea @ 5 gms./sq. mt. at 30th , 45th and 60th day. Cut the haulms on 85th day. During the Whole production period, need base spraying with P.P.C. should be undertaken. Treat the Tuberlets with 3% Boric-acid and store in cold storage for next year after proper drying in shade.
Double Row Method: Preparation of field and other operation are the same. However, in Double Row method seeds are sown 4 cm. apart in a line and row to row distance is 10 cm. In between two double row distance is 30 cm. Top dressing with 5 gm urea per sq.mt. on 30th , 45th and 60th day followed by earthing up as practiced in normal crop so that two lines can be covered by a single furrow.
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phosphate is the most important nutrient for getting higher yield. Against a recommended yield of 25 MT
per hectare for TPS seed small and marginal farmers get 15 to 20 MT per hectare only. Farmers who
possess land near river side record higher productivity.
4.3.5.2.2.3 Market access
Farmers sell potatoes in local weekly haats, to local traders and wholesalers at Agartala and subdivision
markets. Poor farmers keep a small quantity as seed for the next season and don’t face any problem in
selling the remaining produce as markets are generally located within 20 km to villages. Big farmers store
produce in cold stores and sell it during the off season fetching higher prices. All transactions are done in
cash. However, credit is available for inputs which farmers repay after the harvest. The average price
received by farmers is Rs 800- 1000 per quintal.
4.3.5.2.3 Retailers
Retailers are located in villages, blocks, sub divisions and Agartala. At Durga Chowmuhani retail market
in Agartala there are 30 retailers registered with the local municipality. One time registration fee is Rs.
28,000 and per month charge (tauji) is Rs. 250. Retailers procure potatoes from the wholesale markets in
the morning hours from 6am to 7am and in the afternoon from 1pm to 4 pm. They sell potatoes from 7 am
to 12 noon and in the evening from 5pm to 9 pm. Transportation from wholesale market to retail market
in the town area is Rs 10 per bag of 50 kg. Retailer also pays Rs. 4 to Rs. 5 as labour charges per bag for
loading at wholesale market and Rs. 3 for unloading at retail market. Retailers generally sell in cash to
consumers but sometimes offer credit facility without any interest. One retailer brings 4-5 bags of 50 kg
each per day. Total sale of one retailer varies from 150 - 250 kg per day.
4.3.5.2.4 Wholesalers
There are two potato wholesale markets in Agartala: Maharajganj Bazar (Gole Bazar) and Batala
Super Market. Potato wholesalers also deal in onion business. There are 21 wholesalers at
Maharajganj market and 4 wholesalers at Bartala market.
A total of 45–60 MT quantity per day comes by truck from West Bengal and by local transport from
Guwahati. 70 to 80% quantity comes from Dhupguri (Dhupguri variety), 20% comes from Hoogly
(Kolkata Jyoti variety) and (1 to 2) % comes from Kolkata (Chandramukhi variety). It comes in
packages of 50 kg per bag.
Local potato production covers 30-35% of total demand of Tripura State for three to four months (i.e.
from February to April). Local potato in Agartala comes from sub division markets at Bikhora,
Julaibari (South Tripura) Melaghar, (Sonamura), Teliamura, Mohanpur, Bishalgarh (West Tripura).
Wholesalers stock local potato in cold storage at Agartala and villagers store potato in local cold
storages (i.e. at Bikhora and Melaghar) and sell it when demand is high in the market. Rate for cold
storage is Rs 100 to Rs 110 per quintal for one season of up to 6 months.
There are seven to eight cold storages in Tripura. Out of these seven stores three cold storages are
located at Agartala
Bhutaria Cold Storage (Private)
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Sherawali Cold Storage (Private)
Apex Cold Storage (Govt. undertaking)
4.3.5.2.5 Transporters
Transporters are located at the source points at various locations in Uttar Pradesh, West Bengal and
other states from where agriculture inputs come.
From Kolkata to Agartala for one truck (10 wheelers) of 15 MT, cost of transportation per quintal
comes to Rs. 560 and other operating expenses come to Rs. 40 per quintal. From Dhupguri to
Agartala the cost comes to Rs. 430 per quintal and other operating expenses are Rs 25 per quintal. It
means transportation cost comes to Rs 4 to Rs 6 per kg.
Wholesalers at Agartala directly contact wholesalers in West Bengal and bear transportation cost from
West Bengal to Agartala. Labour charge for loading potato at Kolkata is Rs 2.50 per bag. Within the
state local transport cost is borne by retailers.
Labour charges for unloading and loading of potato bags at Agartala come to Rs. 1.25 to Rs. 3.50 per
bag.
Farmers from local sub-divisions come to local haat and sell to local traders.
Local traders purchase potato from farm gate and weekly markets, package it and then supply to
wholesale markets. Trader’s packaging and transportation cost per quintal comes to Rs. 70.
4.3.5.2.6 Consumers
A majority of the population of the state consumes potato. Consumers generally purchase potatoes once
or twice in a week from nearby weekly markets and daily markets in towns. Consumers prefer Kufri and
True potato variety and purchasing is done in cash. Dhupguri variety is the cheapest among all varieties
and is sold most in Agartala. Price paid by consumers varies from Rs 14 to Rs 20 (refer the table)
depending upon potato variety, size, sorting and grading and also timing of purchase. In the morning
prices are high and it reduces as the day progresses. Price of potato varies over a period of time in the year
due to price fluctuation.
Table 17: Potato variety and market prices
Potato variety Farmer to wholesaler (Rs
per kg)*
Wholesaler to Retailer
(Rs per kg)
Retailer to consumer
(Rs per kg)
Dhupgari 6-8 12 14-15
Kolkata Jyoti 5-7 13 16
Chandramukhi 8-10 15-16 18-20
Source: field survey at wholesale and retail market in Agartala
* Based on information shared by wholesaler at Maharajganj wholesale market
4.3.5.2.7 Constraints-Solution Matrix
The table a8 below illustrates constraints faced by farmers for key livelihood factors and critical
intervention points to overcome constraints.
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Table 18: Constraints faced by farmers and intervention points.
Factor Constraints faced by small farmers Critical intervention points
Input sourcing Potato seeds from the government
department are not available on time
which forces farmers to procure them
from open market.
Availability of fertilizers
is low when the demand is high as a
result prices group by 50-200% in
peak demand times.
The state is fully
dependent on other states for supply
of fertilizers and pesticides. Traders
indulge in hoarding.
Farmers are not educated so they find
problem in reading the names of
pesticides so they go by the advice of
retailers who sometime offer
duplicate products as well.
Establish a formal arrangement with
the agriculture department for
ensuring timely supply of potato seeds
and fertilizers to farmers.
Organise farmers to procure inputs
collectively to negotiate better prices
and reduce overhead costs. Farmers
can procure inputs well in advance of
sowing season.
List out input suppliers at Agartala
and sub division markets and establish
tie ups with them for timey
procurement of inputs.
Production
practices and
technology
used
Land in some places is
not fully suitable for growing potato.
In some villages pump sets are not
available and farmers have to hire
them from other villagers @ Rs 80 per
hour.
Extension services from agriculture
department are not available on time.
Farmers don’t upgrade their skills and
knowledge regularly resulting in low
yields. For example, as against
prescribed yield of 25MT per hectare
for TPS farmers get 15-20MT per
hectare.
Promote potato cultivation after
suitable technical assessment of the
area with support of agriculture
department.
Establish linkage with local banks and
government schemes such as SGSY to
help famers in accessing loan for
purchasing pumpsets and other
improved equipments.
Create village level cadre of technical
persons to provide paid technical
services to farmers.
Regular training and exposure visits to
best practitioners in the local area can
help poor farmers.
Access to
support
services
provided by
government
and private
agencies
Inputs from the government
department are not available on time
and the quality of inputs procured
from private players is doubtful.
Farmers who took one-time training
from agriculture department didn’t
get the desired yield. By hit and trials
approach they develop package of
practices.
Cold storages are very far and few.
The labour cost is high at Rs 150 per
Appoint implementing agencies and
develop village level service providers
to help famers link with need based
government schemes and private
services.
Develop village level cadres to help
extend technical services to farmers.
Set up new cold stores after feasibility
study.
Use of latest machines and tools such
as power tiller work faster and saves
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day due to availability of works under
NREGA at Rs 100 per day.
cost.
Access to
finance
Availability of timely and right
amount of credit is an issue. Bank
loan requires a lot of paper work and
farmers’ don’t have proper papers
against their land.
MFIs working in the area provide loan
but their loan products don’t match
expectations of farmers.
Organize poor famers in SHGs to link
them with local banks to ensure their
financial inclusion.
Develop partnership with financial
institutions and MFIs and encourage
them to develop loan product for
potato cultivation based on its
economics.
Market access Farmers sell individually to the
retailer/wholesaler resulting in higher
overhead marketing costs
Farmers get 50% of value paid by the
final consumers
There is scope for collectivizing
farmers to sell collectively and directly
to higher order markets at sub division
towns and Agartala for better price
realization.
Cooperation
among farmers
and
institutions
building
There is low affinity among farmers
for collective action for sourcing of
inputs and sale of potato resulting in
higher operating costs.
Guide farmers for collective sourcing
of inputs and marketing to reduce
operational costs.
Govt. policies
and external
ecosystem
Blockage of roads and civil unrest may
lead to increase in input costs and
market failure making potato
cultivation unviable.
Inclusion of poor tribal and
development of local market system
will reduce dependence on external
markets.
4.3.6 Project Intervention
Project can promote potato cultivation to be taken up by an individual family. Individual farmer will
do the production but sourcing of inputs and marketing can be done collectively.
Project need to work on strategies and capacity building inputs suggested in the previous section and
by adopting an implementation plan described later.
Project can facilitate funding to individual farmers on the basis of unit cost described below.
4.3.6.1 Economics of potato cultivation using TPS
Assumptions
Calculations have been done for 1 kani (0.4 acre or 0.16 hectare) of land for TPS potato cultivation
activity. Cost of various inputs and outputs are based on information collected from villagers, market
players and agriculture department. Agriculture department has provided cost of cultivation for
2009-10.
The rate of interest for bank loan is taken @ 1% per month. Bank loan is considered for three months.
The wholesale price of potato is taken as Rs 8/kg.
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Table 19: Economics for potato cultivation
Particular Unit Quantity Unit
Price(Rs)
Total
Amount(Rs)
Income
Sale of potato Quintal 4000 8 32,000
Cost
Tillage operations cost Lump sum 1 1600 1600
Irrigation Lump sum 1 560 560
Seed cost Kg 0.02 16000 320
Use of fertiliser 0
MOP Kg 38 6 228
Single Super Phosphate (SSP) Kg 100 6 600
Urea Kg 54 5.75 310.5
Farm Yard Manure (FYM) Kg 3200 0.33 1056
Plant protection measures Lump sum 1 100 100
Labour involvement Man days 30 100 3000
Marketing expenses
Commission to agent Commission 32000 0.07 2240
Transportation to nearby market Trip 1 1000 1000
Packaging and bagging Number 80 10 800
Miscellaneous Lump sum 1 1000 1000
Total running cost 12,814.5
Net Income 19185.5
Depreciation 600
Profit before interest 18,586
Interest (12%) 3% 15,815 474.4
Net profit 18111
ROI 114.52%
Payback period (year) 0.82
Fixed capital, working capital and total capital requirement
Fixed capital Unit Unit price
(Rs)
Total amount
(Rs)
Life (in
year)
Depreciation
(Rs)
Farm equipments/tools 1 2,000 2,000 5 400
Miscellaneous 1,000 5 200
Total fixed capital 3,000 600
Working capital
requirement
12,815
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Total capital requirement 15,815
Sensitivity analysis for potato cultivation
Parameters Unit Impact on unit
or cost
Profit before
interest
What if selling price falls by 20% Rs/kg 6.4 12185.5
What if costs go up by 20% Rs total 15377.4 16,023
What if business volume goes down by 20% Number 3200 12185.5
What if selling price goes up by 20% Rs/kg 9.6 24985.5
What if costs fall by 20% Rs total 10251.6 21,148
What if business volume goes up by 20% Number 4800 24985.5
4.3.6.2 Comparative analysis of various possibilities
Table 20: Inputs costs and income for potato varieties
Input
cost
Production Rate/kg Income Net
income
RoI
(%)
1. Potato (TPS) 12814.5 4000 kg 8 32000 18111 115.52
2. Potato (Kufri Jyoti, Kufri
Chandramukhi )
14261 3200 kg 8 25600 10221 59.22
Source: agriculture department data and field survey
Note: Net income is calculated after deducting input cost, depreciation and interest from gross income.
4.3.6.3 Possibility of setting up processing unit
Potatoes can be processed into potato chips and papad. However, setting up such processing units at the
village level would require entrepreneurial skills among poor, marketing and technical skills, and ensured
market linkages with bulk buyers to sustain such processing units. The demand at the village level would
be low and marketing of products outside the village would require successful marketing interventions
such as proper packaging and branding, and linkages with wholesalers and retailers. It is, therefore,
suggested that for first couple of years poor (both individuals and groups) should encouraged for potato
production, productivity enhancement and market linkages as supply of potatoes in the state is less than
its demand. After couple of years project can identify few individuals with entrepreneurial skills to
experiment setting up few processing units. Project staff with marketing skill could be involved for
conducting the detail feasibility study before setting up such units.
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4.3.6.4 Implementation plan for potato cultivation promotion
Key steps to be
followed
Activities to be performed by project
Phase I – Preparedness at the community level (3 months)
Cluster selection Select the right cluster in both project districts for initiating potato
promotion based on technical feasibility.
Identify target block, village and the community.
Social mobilization
and institution
building
Sensitize potato farmers on potential of potato cultivation using TPS as
emerged from the findings of value chain analysis described earlier and
their impact on livelihood.
Share various possibilities of potato cultivation, its cost benefit analysis,
and assess community interest level to take up the activity.
Identify the members/groups to start potato cultivation as a new unit.
Initially only a limited number of groups should be encouraged to start the
activity. Based on the results of pilots add more members. List out
members separately who are already doing the activity and want to either
expand or strengthen the activity.
Initiate participatory discussion to arrive at consensus on roles and
responsibilities of members and group leaders to take up the activity.
Preparation of
business plan
Prepare a proper business plan for potato cultivation in consultation with
the community detailing the economics of the activity, sourcing of inputs,
linkages with market players, production practices and technology to be
used, and government schemes to be availed.
Capacity building Leadership training for group members–functions and responsibility to
interact with external players.
Training in business and marketing skills (costing, pricing, accounting,
sales and marketing, negotiation, market analysis) to members using
participatory techniques.
Technical training on better practices, exposure visits to nearby best
practitioners and outside the states as well.
Identify suitable government and private agencies that can provide need-
based technical and business training at the community level. Identify
local level best practitioners.
Phase II – Establish backward and forward linkages (6 months)
Backward linkages Counsel farmers to procure raw materials including machines and
equipments collectively in bulk to reduce operational costs.
List out major inputs suppliers for ensuring quality of inputs and timely
availability.
Systematize training management.
Establish finance support for potato cultivation on unit cost basis.
Production Implement best practices.
Clarity of roles, specialization and continuous skill improvement
Bring quality control in production to achieve efficiency, higher
productivity at lower costs.
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Better record keeping and financial management.
MIS development and multidimensional intervention opportunity.
Market access Identify suitable and multiple markets and prepare list of market players
with their contact details.
Engage in bargaining, marketing of produce and realize better price.
Clarify on profit sharing and funds rotation among members in case of
group activity.
Build System for collaborations and employment
Phase III – Up-scaling (9-12 months)
Monitoring and
evaluation
Set up regular follow up and monitoring system to evaluate units from
time to time to finds out gaps, take corrective steps and ensure delivery of
appropriate extension services.
Strengthening
Institution
Facilitate secondary institution (producer group) to upscale and sustain
the initiative.
Plan capacity building for strengthening of secondary institutions
Diversify activities to increase income
Create village level cadres to extend technical and marketing inputs to
community at village level.
Provide handholding and technical support to secondary institution
Legal aspects Compliance to legal implications for excise, sales and VAT (once activity
achieves scale it would be required to source inputs directly from outside
the state).
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4.4 Vegetable Cultivation Value Chain
4.4.1 Background
Vegetables are the excellent source of vitamins,
particularly niacin, riboflavin, thiamin and vitamins A
and C. They supply minerals such as calcium and iron
besides proteins and carbohydrates. They thus make an
essential part of our food basket. Tripura grows a large
variety of vegetables. Most vegetables, being short
duration crops, fit very well in the intensive cropping
system and are capable of giving high yields and better
economic returns to the growers.
Food and Agricultural Organization (FAO) predicted that
the world population would be eight billion by the year
2030 and therefore, the demand for food wouold increase dramatically. While global population has
increased over 70 per cent, per capita food consumption has been almost 20 per cent higher. Asia is the
leading producer of vegetables with a 61 per cent total volume output and a yearly growth of 51 per cent.
However, the U. S. continues to lead the export of fresh fruits and vegetables worldwide with orange,
grapes and tomatoes. The top six fruit producers, in declining order cof importance are China, India,
Brazil, USA, Italy and Mexico. China, India and Brazil account for almost 30 per cent of the world’s fruit
supply, but since most of this production is destined for domestic consumption its impact on world trade
is minimal.
Agriculture and allied sector is the backbone of the state’s economy. Tripura is a sub tropical and tropical
zone and produces numerous fruits and vegetables round the year. A total of 3.10 lakh MT (refer table) of
vegetables are produced every year. The state has recorded 62% increase in vegetable production in the
past seven years. The reason behind growing preference for vegetable cultivation is the decreasing land
holding. From 1.25 hectare average landholding per farmer in the state in 1976-77 to 0.6 hectare in 1995-
96 (economic review 2006-07 and 2008-09, Tripura) there is 50% reduction in average landholding in
the state. Small landholding doesn’t provide sufficient income from agriculture making farmers shift to
other farm activities to sustain their family. Horticulture in the state has thus seen a spurt in recent years.
Crops Area
(in thousand ha)
Production
(lakh MT)
Productivity
(MT/ha)
Summer vegetables 13.78 1.44 10.48
Winter vegetables 12.71 1.66 13.09
Total 26.49 3.10 11.70
Source: Economic review 2008-09
The state population is estimated to reach 38.30 lakh by 2015 as a result demand for foodgrains, fruits,
vegetables, dairy products and meat will also increase. Since the state is a net importer of farm produce, it
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would be necessary to increase its farm productivity, especially vegetables. Currently factors impeding
farm productivity in the state are limited irrigation facilities, limited storage facilities, absence of
organized retail trade, especially of the fruits and vegetables, poor quality control and outdated farming
techniques. In the absence of proper post-harvest management nearly 30% crop gets wasted –a loss of
nearly Rs 400 crore every year.
Vegetable cultivation in Tripura has shifted from homestead to large scale commercial cultivation. There
is a growing preference for hybrid varieties due to their higher productivity. Yet, the state depends on
vegetables coming from Assam, West Bengal and Meghalaya to meet its demands. It is expected that
cultivation of off season vegetables like summer cabbage, cauliflower, and tomato will provide much
higher return per unit area to the vegetable growers of the state.
4.4.2 Feasibility of vegetable cultivation
Technical feasibility
The agro-climatic conditions are suitable for vegetables cultivation in the state. A wide range of
vegetables such as tomato, chili, cauliflower, radish, cabbage, and spine gourd etc. can be produced in
the state.
Farmers in the state have basic skill for vegetables cultivation.
There are 7-8 cold stores with over 5000 MT capacity in the state to stock vegetables for sale in the off
season and income spread throughout the year.
Government support is available in terms inputs at subsidized rates, exposure and trainings and
extension services.
Market feasibility
The demand for vegetables in the state is higher than the current production level. Therefore, a part of
this demand especially in Agartala and towns area is met from Shillong and Guwahati.
There is organized market structure in the state with two wholesale markets at Agartala (Maharajganj
and Batala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar,
Udaipur, and also 474 village level primary markets in the state where farmers can sell vegetables
directly to local consumers.
As per market sources, the last few years have recorded over 10% per annum increase in vegetable
demand at Agartala wholesale markets.
Economical feasibility
The cost of investment for chili production is Rs 9050 per 0.4 acre (1 kani) which is affordable for a
small farmer. The overall income is 22,400 with 103% return on investment.
Farmers use vegetables for self consumption that provides nutritional security thus saving cost to the
family.
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4.4.3 Production clusters
Vegetables can be grown throughout the state. It gives higher productivity in plains compared to sloppy
lands. The major vegetable growing areas in the state are Teliamura, Bishalgarh, Sonamura, Meleghar,
Mohanpur, and Narsingarh.
4.4.4 Major usage and byproducts
Vegetables are mainly consumed for making curries and snacks in daily food in the state.
4.4.5 Value chain for vegetables
4.4.5.1 Value chain Map for vegetables
* The rates are shared by wholesalers and retailers for Chilli coming from Shillong and Guwahati.
Vegetables are sold in the state throughout the year. The state is a net importer of vegetables: around
30 to 40 MT of supplies (tomato, cabbage, cauliflower, carrot, green chilli, and cucumber) per day at
Agartala wholesale markets come from Shillong and Guwahati from June to October. These are off
season vegetables and are grown during winter season in the state from November onwards. 25-30MT
vegetables every day come from within the state to Agartala.
Economic review 2008-09 and Human Development Report 2007
Rural marketing and agricultural marketing by Kiran Sankar Chakraborty, A case study of Tripura
Perspective plan for 2010-11 and 2011-12 by department of agriculture, Directorate of Agriculture, Agartala, Tripura, West
Approved Annual Plan 2010-11, Govt. of Tripura, Department of Agriculture, Agartala
Unit costs for farm sector activities for 2005-06, Tripura state by NABARD
Unit for various economic activities by DRDA, West Tripura District
Revised perspective plan for 2010-11 and 2011-12 and project profile for livestock activities by Directorate of Animal Resources Development, Government of Tripura
Activities and achievement, Animal Resources Development Department, Government of Tripura
State Human Development Report 2007
Development and Growth in North East India, Strategy Report, World Bank, June, 2007
Potential linked credit plan 2010-11, North Tripura Disatrict, NABARD, Agartala
Potential linked credit plan 2010-11, West Tripura Disatrict, NABARD, Agartala
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Content
1. Background 114
2. Stakeholders Consultant Report 114
3. Feedback to be incorporated in final report 117
Annexure 1: Presentation by PD, NERLP 119
Annexure 2: Presentation by MART 126
Annexure 3: List of participants 151
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1. Background:
MART submitted draft report to NERLP and World Bank by email to receive their feedback on the report. Three kinds of consultations took place that gave feedback on the draft report are;
Written feedback from NERLP (23rd December 2010) and discussions with PD, NERLP in Delhi.
Feedback from World Bank via forwarded email from NERLP on 26th January 2011
Stakeholders consultation workshop in Tripura on 11th February 2011
The action to be taken by MART on feedbacks received through consultations is capture under section ‘feedbacks to be incorporated in final report ‘ described later in this report.
2. Stakeholders’ consultation workshop
Objective : To share findings and recommendations of draft report Date : 11th February 2011
Venue : Conference hall No. 2 New Secretariat Building, Agartala, Tripura
Time : 10.30 am to 1.30 pm
A stake holder’s consultation workshop was organized to pre sent the draft findings of Tripura prepared by MART for ‘Livelihood based Agri-business and Market studies for North East Rural Livelihood Project’, a World Bank funded Project. The workshop was attended by 20 participants including Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura., Shri Alok Kumar Srivastava, Project Director, NERLP and Shri Sanjay Gupta, MART, New Delhi. The list of participants is annexed.
Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura started the workshop, welcomed
participants in the consultation workshop and requested for their active participation in discussion. He
then invited Shri Alok Kumar Srivastava, Project Director, NERLP to share details related to the NERLP.
Presentation by Project Director, NERLP
Shri Alok Kumar Srivastava explained objectives and genesis of NERLP through a power point
presentation that is annexed. The key points made by him includes:
Immediately after the independence, interventions by the government in rural development became
necessary due to alarming number of poor in early 50’s. Govt. initiated varieties of poverty related
schemes such as FFW,
IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP, SGSY, PMGSY, MGNREGA, State Govt. Social Housing
and Poverty Alleviation Schemes etc.
The schemes were mainly individual oriented to generate employment. It also resulted in creation of
durable community assets such as roads, footpaths and meeting centers and multiple use assets such
as Panchayat Ghar, Schools, Community Halls, Marriage Halls were also created. However, key issues,
involved in the process included proper selection of beneficiaries and quick disposal of assets created.
The key question is the choice in between development and populism.
NERLP is the first multi state project unlike the state specific once lunched /undergoing elsewhere. In
view of sheer magnitude, linguistic differences, varying terrain, and international boundaries it was
decided to phase out the process. Also the expression REGION was replaced by RURAL. North East
Livelihood Promotion Society was constituted and registered at Guwahati in May, 2009.
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NERLP Phase-I started with World Bank assistance by the Ministry of DoNER. Spread over 5 years, it will
cover the states of Mizoram, Nagaland, Sikkim and Tripura. The phase-II after 5 years from now will
cover the states of Assam, Meghalaya & Manipur.
A total of 3 lakh household proposed to be covered in 58 blocks of 9 districts of 4 states. Each state will
have 2 districts except Sikkim wherein 15 panchayat wards have also been included from the 3rd
district. Tripura will account for about 50% of the households due to huge density of population and
correspondingly large number of BPL people.
The institutional arrangement includes – RPMU at Guwahati, DPMU in 8 districts and PFT at Block level
based on MP and Bihar pattern. State coordinator appointed by the project to help and coordinate
from time to time, however, fund flow will not be through him. It will be from World Bank to
DEA/DoNER to RPMU to DPMU to PFT and finally to SHGs and other Community Institutions
(CDG, YG, PO etc.)
After Shri Alok K Srivastava finished his presentation he requested Shri Sanjay Gupta of MART to present
the draft report findings.
Presentation by MART
Shri Sanjay Gupta shared the objectives of the stake holder’s workshop which was to
Share findings on livelihood status Facilitate discussion on
Proposed implementation Envisaged roles and responsibilities of project partners
It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and non-farm sectors. The specific objectives were
It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and
non-farm sectors. The specific objectives were
Understanding existing infrastructure, resources , support services, major occupations, production systems, technology, policy environment and potential for growth
Conduct market assessment and value chain analysis for potential livelihood activities
Suggest viable income enhancement strategies for potential farm, off-farm and non-farm sectors
Suggest business plans for appropriate livelihood interventions for potential activities
Under the context setting, the 8 step study methodology and process, which was shared in the first Stakeholder workshop was then recapped for the forum. Subsequently, MART’s 3M (Micro Finance, Micro Markets, and Micro Planning) concept which was the basis of the study approach was explained to the forum. The field visit was done in 2 phases. In the first 3 villages were visited and in second phase coverage of 10 villages, 5 each in the 2 project districts of namely North District and West District along with other stakeholders was also shared with the forum.
The following section shared the sector wise livelihoods profile across agriculture, NTFP and Animal
Husbandry. Major livelihoods across various sectors, seasonality of availability, marketing channels
of marketed surplus at the community level were then shared with the forum. It was quite clear that
the village and haat level marketing mechanism. Moreover, information on various marketing
platforms available in the vicinity of the villages was shared with the forum. Information on
Infrastructure, Skill and Financial Institutions at the village level, giving a feel of the constraints the
region faces, was shared with the forum.
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Based on the potential ascertained and the 1st Stakeholders’ Workshop five potential activities were
identified which were then analyzed through a Value Chain Approach. Henceforth, the value chain
analysis of 5 major activities viz. potato, vegetables, pulses, pineapple and fish culture wherein 3
aspects (1) movement of the respective produce/products from the producers to the market
players, (2) gaps and constraints in the activity and (3) recommended interventions were shared
with the forum.
Finally, three phase implementation plan including phase I – preparedness at the community level
(cluster selection, social mobilization and institution building, preparation of business plan,
capacity building). Phase-II – Launching of the (backward linkages, production, market access
and convergence) and Phase III- Up-scaling (monitoring and evaluation, Strengthening
Institution, legal aspects)
Proper implementation of the project should include repeat training for community for improvement of
their technical knowledge, skill development and entrepreneurial aptitude. He also mentioned that
collectivization of efforts would yield better result instead of individual efforts, be it in procuring
inputs/raw materials and/or marketing of the produce.
Comments and suggestions by participants
After Shri, Sanjay Gupta finished his presentation, Shri Alok Srivastava invited the participants to share
their observation and comments which are captured below.
Shri Rajesh Pandey, DC, West Tripura district initiated the discussion and he expressed his appreciation
for the report findings presented. He did not hesitate to say that he came to know several aspects
of rural livelihoods from the findings to which he was not even aware despite last five year in rural
development department. He shared that like other development projects, implementation of this
project would also require active participation of line departments which won’t be any issue in his
district. He , however sought clarity on mechanism to share the report findings with community in
villages and the project structure to implement the findings in the field. During the
implementation PD, NERLP shared that PIP document provided to the state includes details
requested by him. MART representative shared that report findings will be shared by the project
staff during the implementation phase.
It was shared that out of 3.5 lakh households, 1.17 lakh tribal households in Tripura have recently been
given forest land rights with average landholdings of 1.5 hectare/household. Project need to keep
this factor in mind during the implementation phase.
One participant shared that the findings of this study would provide critical inputs for implementation of
NRLM in the state.
Project Director, DRDA, North Tripura district said that as group approach would be followed in
NERLP, it is necessary that the SHGs should not be burdened with many activities as it
happening presently. SHGs should not take up more than 1-2 activities at a time.
Manager from NABARD shared that it has facilitated formation of above 200 progressive farmer’s club
in the state and NABARD is willing do convergence with NERLP to facilitate training and
exposure programmes for farmers promoted under the project on cost sharing basis. Recently,
NABARD has also promoted Joint Liability Group and which could also be included in the
project.
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Deputy Director from Panchayat department said that incense sticks making, though an important
livelihood activity in the state, has not been mentioned in the presentation. Sanjay Gupta replied
that handicraft is mentioned in the draft report submitted and clarified during field visit it was
found that it might not be feasible activity for poor as return are low. Participants commented
that bamboo and cane cultivation is declining in the state and therefore, bamboo and cane
cultivation should be promoted in the state.
BDO, Boxanagar was very forthright in stating that many rural projects, could not fulfill its objectives
due to deficiency in delivery system and therefore, for success of NERLP the need is to ensure
proper implementation plan and its delivery. Shri Srivastava appreciated the points and said that
project would take necessary precautions for delivery of inputs and services under the project.
Couple of participants shared that aromatic/medicinal plants and aloe Vera have good potential therefore,
cultivation of such plants may be considered for inclusion in the activities to be promoted by
under NERLP. One participant suggested that nursery promotion could be explored as it is
commercially successful activity. Similarly, representative from planning and statistical
department shared that incense stick making and transportation is a big opportunity in the state
and could be promoted in the state. Sanjay Gupta from MART clarified that project can promote
new activities after conducting proper feasibility study for them.
It was found during field visits that milk productivity is low and varies from 1.5 to 2 liter per day. Very few
households reared hybrid cows. Manger from Tripura Milk Union said that the main bottleneck
for low milk productivity in the non availability/scarcity of right kind of fodder and poor animal
management practices adopted. He requested that NERLP should look into this aspects and
encourage cultivation of improved variety of fodder and artificial insemination in the state.
Joint Director, Fisheries said that ornamental fish is quite lucrative livelihood activity as it fetches Rs.15-
25 per piece and can be promoted under the project for which proper marketing system needs to
be placed in the state.
Commissioner & Secretary, Rural Development Department wanted to know about financing mechanism
under the project and suggested that it should not be opposite to what is promoted under NRLM.
The Project Director clarified that finance will come directly to the district unit of the project and
from there it would go directly to the bank account of community members. He also mentioned
that such details are captured in the PIP document.
The workshop ended with vote of thanks by Shri Amit kumar Kar, Project Manager, NERLP.
3. Feedbacks to be incorporated in the final report
Feedback received from NERLP /World
bank/Stakeholders
Action to be taken by MART
Chapter 1: In the step 4, the examples of five products should be relevant to a particular state.
The products mentioned are specific to Tripura state only.
Chapter 3: The credit availability scenario should be also adequately elaborated
Noted, credit availability scenario will be covered suitably.
Chapter 4
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The process of short listing of products has to be elaborated and justified.
Taken note of, justifications for short listing of products will be included under value chain analysis section
All the products should cover the national and international market status and overall scope of the products.
Taken note of, Available data from secondary sources have been already included under background sections of each product value chain. However, will include additional relevant data under each value 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 economics of all the sub sectors should be more broad, covering all aspects, including marketing.
Detail economics has been given for selected 5 products that include cost of raw material, transportation and fix costs and marketing etc.
More clarity is sought on the nature of details asked for.
The study has not identified the critical intervention points in the value chain of the products. In view of thereof, it did not cover the investment planning for those critical points.
Critical intervention points are presented as strategic action points in tabular form under constrain solution matrix for each product value chain. Economics of each value chain activity covers investment points for raw material/inputs, transportation, marketing, fixed cost and working capital requirement wherever relevant.
The study should provide guidance for setting up small, viable and sustainable processing units.
Taken note of for integrating it under each product value chain
World Bank Feedback
The UNIT costs/investment required for each livelihood activity studied by them is put in a 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
The details will be given in tabular form in the executive summary also.
Also, for each activity in each state they should clearly identify one agency who can be the overall resource/ sector support agency which can be contracted in.
Potential partners will be mentioned under summary of recommendations under value chain analysis chapter.
Other stakeholders feedback
How livelihood survey findings will be shared with rural community ?
Broad implementation plan will be shared under value chain analysis chapter.
Promotion of activities such as incense stick making, ornamental fish, aloe vera, medicinal and aromatic plants
Study mentions five value chain activities and other potential activities that can be promoted under the project. New activities could also be promoted after doing a proper feasibility study for very new activity.
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Annexure: presentation by PD, NERLP
1
North East Rural Livelihood Project (NERLP)
Ministry of DoNER, Govt. of India
Guwahati - 22
Topic Livelihood Study of NERLP Stakeholders Workshop
Conference Hall No. 2, New Secreatariate
Agartala
10.30 am, 11th february, 2011
By
Alok K Srivastava, IAS,
Project Director, NERLP
2
• Interventions by Govt. in RD found necessary due to
alarming number of poor in eraly 50’s.
• India was no longer a police state, it became a welfare
state
• Country, also in addition ravaged by internal conflicts,
demands relating to lingustic reorganisation of states,
droughts and farmers apart from the wars of 1948, 1962
& 1965
• By the time 1971 war was faced, we already had
sufficiently in food grains if not food security.
•
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• Varieties of poverty related schemes tried since 50’s –
FFW, IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP,
SGSY, PMGSY, MGNREGA, State Govt. Social
Housing & Poverty Alleviation Schemes
• Focus – individual oriented, at the same time, employment
was aimed to be generated, ultimately resulting into creation
of durable community assets, such as, Panchayat Ghar,
Schools, Community Halls, Marriage Halls were also
created.
• Perhaps, we had too much of doles going to
individual beneficiaries. Many a time selection of
beneficiaries was problematic. As a result, needy
won’t get what was due to them and some of
selected ones would very quickly reply loan amount
by duly pocketing subsidy.
• Also, assets would be quickly disposed off in some
cases. It was the case with some non-regular social
welfare oriented schemes.
• A lot of thought has, therefore, gone into review of
ongoing schemes aiming at a frontal attack on
poverty. Evaluation by Govt., Non-Govt. and
international Agencies and what not ?
• Choices is between Development and Populism ?
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• In view of success of SHG experiment in welfare
oriented sphere, it has been found desirable to follow
a group oriented approach. Apart from the number
aspect, the quality, proper use of resources, capacity
building and empowerment of the needy has been
emphasized.
• NERCORMP experiment began with the help of IFAD
and Ministry of DoNER w.e.f. 2000 in 6 districts of 3
states of North East
• Implementation in W. Garo & W. Khasi Hills of
Meghalaya; K. Anglong & N.C. Hills of Assam and
Senapati & Ukhrul of Manipur. Though progress was
slow, the scheme could reach those areas rarely or
half heartedly covered by the Govt. functionaries. 1
• Perceptible improvements noticed in environment
protection, road and transport link to the villages, basic
health care, improving primary education, cultivation
and processing of local herbs and medicinal plants,
improving the output of traditional crops etc.
• Livelihood promotion projects taken up with assistance
of World Bank in AP, TN, MP, Rajasthan, U.P., Orissa,
Chattisgarh, Bihar during 2000 to 2008. Some of the
states have gone for 2nd round of financing (parallel
with 2nd dose in IRDP)
• Close on the heels of success of such projects, GoI
decided to launch Livelihood Promotion Project in the
whole of NER. Consultation with all 8 states, survey
and assessment started w.e.f. 2007.6
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• NERLP is the first multi state project unlike the state
specific ones launched /undergoing elsewhere.
• In view of sheer magnitude, linguistic differences,
varying terrain, international boundaries and lack of
exposure to EAP, it was decided to phase out the
process. Also the expression REGION was replaced
by RURAL
• North East Livelihood Promotion Society was
constituted and registered at Guwahati in May, 2009.
Temp. Office set up on 21st December, 2009. Proper
building occupied w.e.f. June, 2010
7
• NERLP Phase-I therefore started with World Bank
Assistance by the Ministry of DoNER. Spread over 5
years, it will cover the states of Mizoram, Nagaland,
Sikkim & Tripura. The Phase-II after 5 years from now
will cover the states of Assam, Meghalaya & Manipur.
• A total of 3 lakh household proposed to be covered in
58 blocks of 9 districts of 4 states. Each state will have
• North District- Bilthai, Purba Tilthai, Unokoti, Sonamiri,
Sukantnagar, Kaulikura and Deoracherra ( 4 Blocks)
• In sum and substance, after these efforts, we
will have a good idea of the potential of the
villagers of two districts. Stage in now set for
village entry subsequent to final nod from Worls
Bank.
12
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www.dawnerlp.in13
Thank You
14
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MART Presentation
Livelihood Based Livelihood Based AgriAgri--Business and Market Business and Market
Studies for North East Rural Livelihood ProjectStudies for North East Rural Livelihood Project
Tripura FindingsTripura Findings
February 2011February 2011
Objectives of stakeholder workshop
Recap of study methodology and process adopted
Share findings on livelihoods status
Facilitate discussion on
• P roposed implementation
• Envisaged roles and responsibilities of project
partners
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Livelihood based Agri-Business and Market studyAssess economic opportunities in farm, off-farm and non-farm sectors Understand existing infrastructure, resources ,
support services, major occupations, production systems, technology, policy environment and potential for growth
Conduct market assessment and value chain analysis for potential livelihood activities
Suggest viable income enhancement strategies for potential farm, off-farm and non-farm sectors
Suggest business plans for appropriate livelihood interventions for potential activities
North East Rural Livelihood Project
The Ministry for Development of North Eastern
Region (DONER ), Government of India proposes
North East Rural Livelihood Project (NERLP) to
address the issues of rural poverty and creation of
sustainable livelihood for rural poor particularly for
women .
Project states include Tripura, Nagaland, Sikkim and
Mizoram
MART , a leading Livelihoods and Marketing
Consultancy signed agreement on the 4 th of August
2010
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Agriculture – Major CropsMajor crops Availability in
percentage of villages
Percentage of households
involved
Paddy 100 31
Vegetables (except potato) 90 24
Potato 90 15
Areca-nut 60 20
Pulses 50 1
Pineapple 50 8
Rubber plantation 40 2
Fruits (except pineapple) 30 5
• Agriculture trends• 68% of rural households possess agriculture land and 32%
households are landless.
• Average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to 0.6 ha in 1995-96
• 95% of total operational landholdings in the state are below 2 hectare and these account for 75% of operated area
• Factors affecting agriculture• Entrepreneurial attitude of farmer,
• Size of land holding,
• Availability of irrigation facility,
• Adoption of package of practices
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Input Sourcing
• Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools from nearby towns. Seeds and fertilizers are available from government department
• Farmers don’t stock inputs and purchase them on as-and-when-required basis, mostly in cash.
• Short supplies of chemical fertilizers coupled with individual purchases of small quantities make farmers to spend two to three times of the actual price.
• Retailers offer credit but charges higher rates who also offer advice.
• Farmers get duped on brands due to low literacy levels.
Agriculture practices and technology used
• Farmers use home grown seeds but use of certified and hybrid seed has picked in last few years.
• Use of power tiller saves labour cost and time (Rs 100 – Rs 150 per hour)
• Technical training make farmers educated and aware but adoption of practices is low and different.
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Access to finance
• Money lenders are the traditional source of financer to rural community and they charge 5-10% per month.
• Agencies such as RGVN, Bandhan and Basix operate
– provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation activities.
– effective rate of interest to farmers comes to 30% per annum
– Villagers repay the loan on weekly basis.
• SGSY schemes offers bank loan and subsidy. SHG needs of proper handholding and marketing support
Market accessMajor crops Volume consumed in
village (%)
Marketable surplus
quantity per village (%)
Paddy 74 26
Arecanut 44 56
Pulses 39 61
Potato 20 80
Fruits 18 82
Vegetables 4 96
Tea plantation 3 97
Pineapple 1 99
Rubber plantation 0 100
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Market accessMajor crops Selling system (% of produce) Sale price
Key VC constraints• Seeds from the government department are not
available on time which forces farmers toprocure them from open market.
• Availability of fertilizers is low when the demandis high as a result prices group by 50-200% inpeak demand times.
• Farmers are not educated so they find problemin reading the names of pesticides so they go bythe advice of retailers who sometime offerduplicate products
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• Farmers are not aware of new improvedtechniques, such as staggering method thatimprove productivity significantly
• Availability of irrigation is an issue, in somevillages pump sets are not available and farmershave to hire them from other villagers @ Rs 80per hour
• Lack of adequate extension services from govt.department
• Due to lack of sufficient cold storage facility inthe state, farmers sell the produce immediatelyafter the harvest at throw away prices.
• Availability of works under NREGA at Rs 100 perday has pushed labour costs to as high as Rs 150per day.
• Bank loans not available to poor; MFIs provideloan at higher interest but their loan productsdon’t match the farmers expectations.
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• Farmers sell individually to the retailer /wholesaler resulting in higher overheadmarketing costs
• The farmers have low affinity for collective actionfor sourcing of inputs and salling resulting inhigher operating costs.
• Blockage of roads and civil unrest may lead toincrease in input costs and market failure makingcultivation unviable.
Broad Strategies
• Focus on productivity enhancement
• Focus on building capacity on markets andmarketing and entrepreneurial skills and directmarketing of produce
• Decentralize production and collectiveprocurement and marketing of produce
• Regular training on better PoPs/technologies
• Promote village level cadres for handholdingsupport
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Thanks and discussions
Implementation Plan• phase I – Preparedness at the community level
– cluster selection– social mobilization and institution building– preparation of business plan– capacity building
• Phase-II – Launching of the – backward linkages– production– market access and convergence