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3nf>10, ^^5FTcr^2007

TECHNICAL DIGEST
ISSUE 10, January 2007 For Private circulation only

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NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT TIpftuT ^^Tljfe eft ^ # ^TTff^ ^

Two Decades of Committed Service to Rural Prosperity

Message From jWmayhig Di^'^c-'rvs'

Though the growth of the Agriculture Sector is limited, there are some sub sectors which show promising trends - like dairy, poultry and horticulture. The Dairy sector has emerged as a tool in the hands of planners and bankers to usher in rural development. Dairy development have flourished in the able hands of women. So it is not surprising that SHGs have taken up much of the recent dairy activity. The concept described as happening in Andhra Pradesh, is expected to repeat itself in other areas also in the near future. The Northeast has enormous potential in many sectors which are waiting to be tapped. The broiler integration in Assam, Food processing in Manipur are some of the sectors where large strides have been made in the region in the recent past. I feel that much more needs to be done in exploiting Bamboo and Passion f r u i t cultivation and processing. With the projected demand of Rs. 26000 crore for Bamboo products by the end of 2015, bankers should pay more attention to Bamboo cultivation and value addition specially in down stream industries. Our nation's diversity and potential is brought out by the article on Lakshadweep where fishing is the main occupation. Canning Tuna or processing it into Masmin are all activities which need to be introduced there. I t is the need of the hour that a plan be made to introduce facilities to encourage deep sea fishing on a sustainable basis without affecting the ecosystem in the area. There is a lesson for all of us to learn from the experiments being made to use I T in agriculture extension. The farmers' receptiveness has been high in some States like AP, but in other States also, we need to take the new technologies to them by intensive extension. Private sector initiatives in this area has to be 'show cased' for benefiting all. The share the producer gets in the consumer's price is an important factor as it determines the efficiency of the supply chain. The factor is brought out well for the cashew sector of Goa. This should encourage other commodity markets also to organise themselves f o r better prices and constant quality improvements. Water is becoming the most important subject in the world. Issue of governance in irrigation system is gaining importance as we go in f o r diversification of our crops and at the same time plan to meet the growing demands of our population. I am glad that this major issue is being discussed in our journal. Location specific ideas on water use is also covered by discussing the hydrams where lifting water is powered by fall of the water. They can be employed to the farmer's advantage in hilly areas with year round flow of water. I am happy to present this issue of "Technical Digest' with such a wide range of articles. The concepts and ideas contained in them need to be propagated among bankers and farmers alike to make our mission of rural prosperity a reality.

( br.K.GXarmakar )

3 R i l O , 2007

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From the Desk of the Editor

I am happy to present the 10th issue of "Technical Digest" which includes the articles from our colleagues on a wide range of topics based on field level experiences and studies. In the present era of commercialisation of agriculture, where corporates are making substantial investments for value addition and export of agriculture produce; it is essential to build super-specialisation on various sun rise sectors by technical specialists for taking up Project consultancy and financing. Sharing of scientific knowledge and expertise is, therefore, essential and we have initiated "E-mail Groups" in various specialised disciplines within NABARD for dissemination of latest developments. I urge all the sector specialists to join the concerned e-group and to harness the benefit. The present issues covers a wide range of areas like Water Management and its governance, processing and supply chain management of horticulture products, people's participation in Dairy and Development of Tuna Fishing, Bamboo Cultivation, etc. besides some innovations in Agricultural Extension. ,. r Capital formation in commercial agriculture especially for post harvest and export is essential in a fast developing economy like ours, for which substantial investment is required for the agro processing sector. Integrated projects from Farm to Fork in the supply chain would require to be funded on "Project Mode" through dedicated SPVs on a consortium approach. Therefore, sustainable project funding would require a dedicated team of multi-disciplinary techno, financial specialists. Many new generation private sector banks have already emerged as main credit agencies in commercial agriculture including the Agriculture Export Zones (AEZ). We would have to sharpen our skills and design suitable products to take up the emerging challenge with innovative approach of 'Project Financing' to remain relevant as the apex agriculture development bank in the country. In the coming issues, it is proposed to focus attention on innovative projects including the use of non-conventional energy like mini and micro hydel projects, wind farms, etc. We invite contributions from all our colleagues especially those from the Regional Offices, who are involved in implementation of various programmes in the State.

-^W.

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John Kurien Chief General Manager Technical Services Department

ISSUE 10, 2007 For Private circulation only

TECHNICAL/DIGEST

Chief Editorial Advisors: Dr. Y.S.R Thorat Chairman, NABARD ARTICLES Dr. K.G. Karmakar Managing Director, NABARD

IN THIS ISSUE
Page No.

1.

Theory and Application of Hydraulic Ram Pumps (Hydrams) S.Hazarika

Dr. R. Balakrishnan Executive Director, NABARD Chief Editor: John Kurien Chief General NABARD Editors: SKPatra,GM Agricultural 2.

Ground Water Governance issues in Irrigation Development - A Perspective

Manager, 3.

John Kurien b Ashutosh Kumar Sinha Integration of SHGs with Dairy Cooperatives A Model Concept Dr.K.Swaroopa Rani & Dr.K.R.Rao 10

Engineering 4. MANIPUR - the hidden 'Jewel of India' in food processing A. Ramanathan, Dr. D. V. Deshpande 8 Dr.Y. Mara Gopal 5. Fisheries of Lakshadweep with special reference to Livelihood issues Shaji Zacharia 6. Supply Chain Analysis of Raw Cashew IMuts in Goa Dr 8 Agronomy 7. T.Vilasachandran 23 20 16 12

Dr. B Sethuraman, GM Animal Husbandry Dr. S.S. Roy, GM Plantation and Horticulture G.S. Mehta Fisheries B K Samal, DGM Land Development

Agriculture extension - An innovative thinking M KDe & Dr Bhavani Shankar

Rekha Sanjay, Mgr Commercial Forestry C R Abuvarajan, Biotechnology Supporting Staff : VB.More H. T Balsaraf Asst Manager

8.

Bamboo Cultivation - Potential and Prospects Sangeeta Prasad Mehra & L. K. Mehra

26

BUSINESS MEET RESEARCH HIGHLIGHTS FIELD STUDY NEW INITIATIVES

Published by: National Bank for Agriculture and Rural Development, Technical Services Department, C-24, G Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051, Tele : (022) 26530038; Fax : (022) 26530091 E-mail: nabtsd&bomS.vsni.net.in Website : http:/lwvm/.nabard.org.

Note : The weivs expressed in various articles are those of the authors and not necessarily of NABARD.

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3T^ 10, 2007

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Theory and Application of Hydraulic Ram Pumps (Hydrams)

S.Hazarika^ INTRODUCTION ": '^ "M^'":':':^-: '^^/'^i-"

Hydraulic ram pumps c o m m o n l y k n o w n , as hydrams are water-lifting devices that are powered by falling water. Such pumps work by using the potential energy of water falling through a small height to lift a small part of that amount of water to a much greater height. In this way, water f r o m a spring or stream in a valley can be pumped to a village or irrigation scheme on the hillside. The main advantage of hydraulic ram p u m p s is t h a t it o p e r a t e s a u t o m a t i c a l l y a n d continuously with no other external energy source. It uses a renewable energy source (stream of water) and hence ensures low running cost. Hydraulic ram pumps are simple, reliable and require minimal maintenance. All these advantages make hydraulic ram p u m p s s u i t a b l e f o r rural c o m m u n i t y w a t e r s u p p l y and irrigation where there are no other sources of power and topography and hydrology is suitable. Ram Pumps have been used for over t w o centuries in many parts of the w o r l d . Their simplicity and reliability had made them commercially successful, particularly in Europe. As t e c h n o l o g y a d v a n c e d and b e c o m e increasingly reliant on sources of power derived f r o m fossil fuels, the ram p u m p was neglected. In recent years however, an increased interest in renewable energy devices and an awareness of the technological needs of a particular market in developing countries have prompted a reappraisal of ram pumps. In hilly areas with springs and streams, the potential for a simple and reliable pumping device is large. Fig 1 shows a typical layout of a hydram installation

Design D = A m o u n t to be delivered in liters per 24 hours. d = A m o u n t to be delivered in liters/minute = D/ (60X24) = 0/1440 S = Quantity of water supplied f r o m the source in liters/minute. F = The fall or height of the source above the ram in meters. E = The efficiency of the ram (for commercial models use 0.66, for home built use 0.33 unless otherwise indicated). L = The lift height of the point of use above the ram in meters. Equating the potential energy on the fall side and the rise side w e have

Storage

d X L = S X F X E Ord OrD = (SxFxE)/L : ',

= 1440X(SxFxE)/L

Table 1 gives the amount of water delivered in 24 hours for a supply of 1 liter per minute for various working fall and lift. A n efficiency of 5 0 % has been assumed for the purpose. supplied. Chief General Manager (Retd), HO For supplies greater than 1 liter/ m i n u t e , s i m p l y m u l t i p l y by t h e n u m b e r of liters

ISSUE 10, 2007 For Private circulation only

TECHNICAL/liJGEST

a Table 1 : Hydram Performance - Water Delivered in 24 Hours (liters) for Supply of 1 Lits/Min
Efficiency 5 0 % Working Fall (F)^HHHHH| 4 Meters ited i 1 Vertical Height thro ugh w h ich wate r is to b e l f (L) Met ers

5.0 10 . 15 . 2.0 2.5 3.0 3.5 4.0 5.0 6.0 7.0 8.0 9.0
10.0 12.0 14.0 16.0 18.0 20.0

7.5 96 144 192 240 288 336

10.0

15.0

20.0

30.0

40.0

50.0

60.0

80.0

100.0

125.0

144 216 288

72 108 144 180 216 252 288 360 432

48 72 96 120 144 168 192 240 288 336 384 432

36 54 72 90 108 126 144 180 216 252 288 324 360 432 504

24 36 48 60 72 84 96 120 144 168 192 216 240 288 336 384 432 480

18 27 36 45 54 63 72 90 108 126 144 162 180 216 252 288 324 360 22 29 36 43 50 58 72 86 101 115 130 144 173 202 230 259 288 18 24 30 36 42 48 60 72 84 96 108 120 144 168 192 216 240 18 23 27 32 36 45 54 63 72 81 90 108 126 144 162 180 18 22 25 29 36 43 50 58 65 72 86 101 115 130 144 17 20 23 29 35 40 46 52 58 69 81 92 104 115

Design of Components of Hydraulic Ram A hydraulic ram installation consists of a supply, a drive pipe, the ram, a supply line and usually a storage tank. These are shown in Figure 1. Each of these component parts is discussed below: Supply. The intake must be designed to keep trash and sand out of the supply since these can plug up the ram. If the water is not naturally free of these materials, the intake should be screened or a settling Table 2 : Range of Drive Pipe Lengths for Various Pipe Diameters
Length (meters) Minimum Maximum

basin provided. When the source is remote from the ram site, a supply line can be provided to conduct the water to the drive pipe. The supply line, if needed, should be at least one pipe diameter larger than the drive pipe. Drive pipe. The drive pipe must be made of a nonflexible material for maximum efficiency. This is usually galvanized iron pipe, although other materials cased in concrete will work. In order to reduce head loss due to friction, the length of the pipe divided by the diameter of the pipe should be within the range of 150-1,000. Table 2 shows the minimum and maximum pipe lengths for various pipe sizes.

Drive Pipe Size (mm) 13 20 25 30 40 50 80 100

2 3 4 4.5 6 7.5 12 15

13 20 25 30 40 50 80 100

Table 3 : Sizing the Delivery Pipe

Delivery Pipe Size (mm) 30 40 50 80 Flow liters/min

6-36 37-60 61-90 91-234 235-360

100

3te 10,2007

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The drive pipe diameter is usually chosen based on the size of t h e ram and the manufacturer's recommendations. Delivery Pipe. The d e l i v e r y p i p e can be of any The Storage Tanl<. This is located at a level to provide The size is based on the Specific situations in which other technologies may prove more appropriate are: Installation In installing the ram, it is important that it be level, securely attached to an immovable base, preferably concrete, and that the waste water be drained away. The pump cannot operate when submerged. Since the ram usually operates on a 24-hour basis the size can be determined for delivery over a 24-hour period. APPLICATIONS AND LIMITATIONS OF HYDRAULIC RAM PUMPS The advantages of a ram p u m p are : Use of a renewable energy source ensuring low running cost Pumping only a small proportion of the available f l o w has little environmental impact Simplicity and reliability give a low maintenance requirement There is good potential for any particular site; there is usually a number of potential water lifting options. Choosing between them involves consideration of many different factors. Ram p u m p s in certain conditions have many advantages over other forms of water lifting, but in others, it can be completely inappropriate. The main advantages of ram pumps are: for local manufacture in the rural villages A u t o m a t i c , c o n t i n u o u s o p e r a t i o n requires no supervision or human input. The main limitations are; ESME 5th Annual Conference on Manufacturing They are limited to hilly areas with a year-round water sources and Process Industry, September 2000 2. 1. Jeffery, T. D., "Hydraulic Ram Pumps - A Guide to Ram Pumps Water Supply System", Technology Publications, ^Q22. Intermediate REFERENCES >: In small-scale domestic water supply, the choice can often be between using a ram p u m p on a stream or using cleaner groundwater. Surface water will often need to be filtered or treated for h u m a n c o n s u m p t i o n , increasing the cost of a system and requiring regular filter maintenance. Under these conditions, to select a hydram pump, e c o n o m i c a l considerations c o m p a r e d to other technologies has to be looked at. In terrain where streams are falling very rapidly, it may be possible to extract water at a point above the village or irrigation site and feed it under gravity. If the water requirement is large and there is a large source of falling water (head and f l o w rate) nearby, turbine-pump sets can provide the best solution. Many ram pumps could be used in parallel to give the r e q u i r e d o u t p u t but at p o w e r s over 2kW, turbine-pump systems are normally cheaper. water to the point of use. m a x i m u m demand per day. They p u m p only a small fraction of the available f l o w and therefore require source flows larger than actual water delivered Can have a high capital cost in relation to other technologies Are limited to small-scale applications, usually up to I k W

material that can withstand the water pressure. size of the line can be estimated using Table 3.

Dr. Tessema, Abiy A w o k e " Hydraulic Ram Pump System Design A n d Application"

ISSUE 10, 2007 For Private circulation only

TECHNICAL DIGEST

GROUND WATER GOVERNANCE ISSUES IN IRRIGATION DEVELOPMENT - A PERSPECTIVE

J o h n Kurien^ and A s h u t o s h Kumar Sinha^ BCM of surface water and 400 BCM of g r o u n d w a t e r . It is however possible to augment additional surface water resources up to 240 BCM through inter basin transfer. Out of the available utilisable resources, only 605 BCM are presently utilized, of which Irrigation accounts for nearly 500 BCM, Domestic use for 30 BCM, Industry for 20 BCM, Energy for 20 BCM and other uses account for balance 35 BCM. Thus, irrigation alone constitutes about 80 percent of the total utilised w a t e r r e s o u r c e s of t h e C o u n t r y . H o w e v e r , t h i s comfortable position w o u l d not continue in future because of competing demands f r o m other sectors, p a r t i c u l a r l y d r i n k i n g w a t e r r e q u i r e m e n t s , since prioritized under National Water Policy.Therefore, future planning for expansion of agriculture / irrigation w o u l d not have t h e l u x u r y of unrestricted water availability and one has to proceed differently on a natural resource management concept, if only to set the path f o r a s e c o n d g r e e n r e v o l u t i o n of f o o d sufficiency and high marketable surpluses.Although surface and ground water are inter-related resources, this paper will focus mainly on the theme of this Symposium i.e. the ground water governance issues. Let us begin by l o o k i n g at the status of physical progress in this regard. 2. Progress of Ground Water Development

1.

Introduction

Irrigated agriculture is fundamental to Indian economy, particularly, f r o m poverty alleviation point of view. Agriculture alone accounts for nearly 30 percent of GDP and 70 percent of employment in the Country. Irrigation is a primary input to agricultural production. W i t h the rapid expansion of irrigation in terms of commissioning of major, m e d i u m and minor irrigation projects through various Five Year Plans, the potential created has g r o w n manifold since 1951. This has resulted in India moving f r o m the spectre of periodic famine and import of f o o d grains to the actuality of achieving self sufficiency in food and drought proofing, besides exporting select f o o d and horticulture crops. With ever increasing population, however, India would be required to feed about 1.40 billion people by 2025. The current f o o d production of nearly 210 million metric tons will therefore have to be raised to 350 million metric tons by then. A t the same time, there w i l l be an i n c r e a s i n g p r e s s u r e t o d i v e r s i f y t h e agricultural output by raising high value crops, such as, cash crops, horticultural crops etc., so as to give f u r t h e r b o o s t t o t h e rural e c o n o m y in t e r m s of generation of higher rural income and employment. H e n c e , j u d i c i o u s use of w a t e r u n d e r i r r i g a t e d a g r i c u l t u r e w i t h s t r o n g e m p h a s i s on water m a n a g e m e n t in t e r m s of water c o n s e r v a t i o n and augmentation of both the surface and the groundwater resources of the country is most important. 1.1 Water Resources of India The utilisable water resources of India are estimated at 1090 billion cubic meter (BCM) which includes 690
Ground water Dugwell North North East East Central West South Total 1,197.6 10.3 876.5 1,606.9 2,599.8 3,335.7 9,626.8 Shallow Tubewell 1,570.8 80 1,300 3,943.2 112.6 1,349 8,355.6 Deep Tubewell 92.1 0.9 15.9 77.6 171.4 172 529.9

Our country started with big publicly owned surface irrigation systems. However, over the past two-three decades, the major expansion in irrigation capacity has taken place in the private ground water irrigation and ground water has been the life line for agriculture specially during this period.
(in thousand nos.) Surface water* Sub total 2,860.5 91.2 2,192.4 5,627.7 2,883.8 4,856.7 18,512.3 Lift 5.6 3.2 157 228.8 104.1 108.1 606.8 Flow 25.7 47.4 148.6 140 90.3 189.9 641.9 Sub total 31.3 50.6 305.6 368.8 194.4 298 1,248.7

irrigation tanks included here * Chief General Manager', Assistant Manager^, TSD, HO

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2.1 Number of structures As per the latest 3rd Minor Irrigation census(as of 200001 )of the Go!, the number of minor irrigation structures existing in the country are as below. It may be recalled here that ground water irrigation structures almost entirely fall in the minor irrigation category. Thus we see that there are as many around 18.5 million ground water structures as of now-a big governance challenge. . , . 2.2 Area irrigated The irrigated area has increased handsomely over the y e a r s , c o n t r i b u t e d in no s m a l l m e a s u r e by t h e expansion of g r o u n d water irrigation. The current estimated position is as below. (in mha) ground water structures created, it is estimated not to cover more than 3 0 % of t h e m , i.e. a major portion of ground water irrigation has been self-financed by the farmers, and it is this category which has been almost entirely ungoverned. 2.4 GW available for future irrigation development Recently, the assessment of the dynamic ground water resourcesof the country was completed (March 2004) whose summary is given below.
Region Net Annua! ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ ^ available for future irrigation development (in million ha.m/year) -1.27 4.12 3.64 4.84 1.84 3.03 16.2

North North East East Central West South

HIIP**
IK

Major/ Minor irrigation Sub-sector Medium Sub- Surface Ground Sub sector Water Water Total 58.5 17.4 64.05 81.45

Grand' Total

Ultimate Potential available Potential created Potential utilised

139.95

Total

32.69 28.20

12.24 10.82

45.88 42.05

58.12 52.87

90.81 81.07

The gap between ultimate potential, potential created and utilised points to the need for better governance w h i c h can s t i m u l a t e e f f i c i e n t u t i l i s a t i o n , t o t h e m a x i m u m extent, of the potential available. 2.3 Credit flow The flow of credit to minor irrigation sector of which more than 90 per cent is accounted f r o m ground water over the years, is as below.
(in Rs. crores) Year IX Plan 1997-98 1998-99 1999-00 2000-01 2001-02 XPIan 2002-03 2003-04 2004-05 1,975 2,730 4,214 1,584 1,856 2,132 1,820 1,845 Ground Level Credit

This shows that as of March 2004, there are 16.2 million hectare meter of dynamic g r o u n d water resources a v a i l a b l e in t h e c o u n t r y f o r f u t u r e i r r i g a t i o n d e v e l o p m e n t w h i c h , however, are very unevenly distributed in the different regions. The Western and Northern regions have low ground water availability and the assessment units are mostly categorised as critical and over-exploited, which denotes areas to be regulated for future use. 2.5 Status of ground water use ,'

The trend of block categorisation over the last 15 years is indicated in the Table below, which shows the fast depletion of resources. Table : Status of Ground Water use in the country, over the years 1992-2005 - increase in the numbers of 'unsafe'fsemi-critical, critical and over-exploited) blocks
Block Categorisation within the 'unsafe' category

Position as in January 1992 April 1998 August 2005 839 226 1,065 550 1,615

Over-exploited Critical/Dark Sub total Semi-critical/grey Total 309 309 16 325

416 416 448 864

It may be noted that this credit as well as that over earlier year5, has mainly f l o w n to the private ground water sector through structures o w n e d by farmers. However, as a percentage of the total number of private

Thus, w e see the situation is fast deteriorating, and urgent steps are required. Sound governance is the single most important necessity in this direction.

teSUE 10, 2007 For Private circulation only

rEGHNIGAl DIGEST
w o u l d mean that everybody has access to water at least as per their m i n i m u m needs. 3.5 Sustainability This is a b o u t m e e t i n g t h e needs of t h e present generation without harming the prospects of the future g e n e r a t i o n . This may require curtailment of the present levels of consumption of the resources. An example of this is the current restrictions on the ground water use to the annually rechargeable d y n a m i c resources. 4. Ground Water Governance Rules and

3.

Governance

The term governance deals with the processes and systems by which an organisation or society operates. The World Bank defines governance as "the exercise of political a u t h o r i t y and t h e use of i n s t i t u t i o n a l resources to manage society's problems and affairs". A n alternative definition suggests that governance is "the use of institutions, structures of authority and even collaboration to allocate resources and coordinate or control activity in society or the economy". Thus, governance can be taken to be broadly synonymous with authority, decision making, power, administration, or politics.However, more specifically, w e shall take governance to mean t w o broad things - Rules and Institutions/Agencies. 3.1 Rules Rules are the agreed sets of behaviour to be complied by the whole society. There can be formal rules in the shape of Constitution, various legislations, bye-laws, customary laws, case laws, etc., and there can be informal rules in the f o r m of social consensus/wisdom, w h i c h although not c o d i f i e d , have some force for c o m p l i a n c e by i n d i v i d u a l s , and t e n d t o b e c o m e codified over the years.The rules existing in the water sector are - Constitutional entries in the Union/State lists. Inter State Water Dispute Act, some State Water Acts, WUA Acts, Easement Act, etc. 3.2 Institutions/Agencies Then there are the institutions - to operate those rules (the executive), and to change those rules as and when required in a dynamic w o r l d (the legislature), and to a d j u d i c a t e (the j u d i c i a r y ) . Thus w e have the Government, the Parliament and the Courts, at the Central, State and Panchayat levels, besides which there are institutions operating exclusively in the water sector e.g. the Water Disputes Tribunals, WUAs, Water Resource Regulators in some States. The objective of this entire process of governance - the rules and the institutions - is to bring about efficiency, equity and sustainability of resources. 3.3 Efficiency Efficiency or productivity is the quantum of output per unit of resource. In the irrigation sector, it w o u l d mean more crop per drop and no wastage/over use. 3.4 Equity Equity in allocation of natural resources means that the benefits of using them are distributed fairly. In an operational and restricted (human rights) sense, it

Institutions In the backdrop of the above, let us see what is the position in the ground water sector and what more needs to be done. 4.1 Technical Issues for Governance The major development of irrigation capacity in the private sector over the years, as indicated earlier, has been ground water based and a portion of the same has taken place t h r o u g h bank finance w h i c h was supported by NABARD refinance. NABARD used its position to promote efficiency, equity, sustainability and also to direct irrigation development in areas with a b u n d a n t g r o u n d w a t e r r e s o u r c e s , t h r o u g h its mandatory norhns of refinance that the banks have to follow for availing it. Some of these norms are given ahead. 4.1.1 Norms for NABARD refinance (A) Ground Water Availability The first requirement for judicious use of any resource is its accurate assessment to define availability on a sustainable basis. Unless we know the quantum of resource available, we will not be able to plan development strategy. In t h i s d i r e c t i o n , N A B A R D ( i n c l u d i n g previously, ARDC) alongwith CGWB and State G r o u n d Water Departments have played a critical role in initiating the g r o u n d water assessment, since 1972 (JK Jain Committee), 1979 ( O v e r - E x p l o i t a t i o n C o m m i t t e e ) , 1984 (Groundwater Estimation Committee/GEC-I), 1997 (GEC-II) & 2004(Hard Rock Committee). These methodologies were used to quantify the d y n a m i c resources. Currently, an R&D Advisory Committee of CGWB is working on the quantification of phreatic and confined a q u i f e r s . W e m a y have t o f u r t h e r t h i n k of establishing Aquifer Boards(an institution) on

:;

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the lines of the River Boards for better aquiferw i s e a s s e s s m e n t , p l a n n i n g of u t i l i s a t i o n s t r a t e g y a n d m o n i t o r i n g t h e s t a g e of development for various aquifers. (B) Block categorisation As part of assessment, blocks were categorised using stage of ground water development and long term trend of g r o u n d water table, and this was i n t i m a t e d to the banks and State Governments for directing their finance. NABARD refinance f o r n e w g r o u n d w a t e r structures is available only for safe and semicritical blocks. All the Centrally Sponsored and State -Sector subsidy linked credit assistance for ground water development are governed by N A B A R D on t h e c a t e g o r i s a t i o n of assessment units. (C) Spacing norms To ensure that the extraction f r o m one well does not affect the adjacent one, m i n i m u m distance between t w o ground water extraction structures has been prescribed as spacing criteria, d e p e n d i n g on the hydrogeoiogical c h a r a c t e r i s t i c s of t h e area. T h i s is m a d e mandatory for various ground water abstraction structures based on detailed aquifer parameter tests and monitored on a continuous basis. (D) Quality of pumpsets/Energy Efficiency Based on 'Pilot project studies f o r quality control of agricultural pumpsets' taken up in 18 States, t w o publications have been brought out, spelling out a matrix for selection of lifting devices for ground water abstraction, depending on crop water requirement and total head for irrigating the designed c o m m a n d area from various ground water abstraction structures (DW, STW, TW, BW, etc.). Further, the matrix details have been taken up with Bureau of Indian Standards (BIS) and IS 10804 -1994 for'complete pumping system (CPS) for q u a l i t y c o n t r o l of a g r i . p u m p s e t s ' w a s formulated for selection, installation, operation and quality control of agricultural pumpsets f o r o p t i m u m e f f i c i e n c y . CPS w a s m a d e mandatory for NABARD refinance for p u m p s e t s f i n a n c i n g by banks. Necessary certification f r o m authorised manufacturers/ dealers have been made mandatory including certification f r o m the financing banks.However, the ground reality is that the guidelines are (E)

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often ignored. Inefficient lifting devices like air compessors, piston pumps, which even resort to surging of water, are also being used widely. This leads to over-exploitation of the aquifer and also disturbs their hydraulic efficiency. The main reason for the above is that energy is almost free for agricultural operations. Hence, there is no incentive for farmers to bother about energy efficiency. A scheme formulated by N A B A R D f o r r e c t i f i c a t i o n of a g r i c u l t u r a l p u m p s e t s has also n o t b e e n s u c c e s s f u l b e c a u s e of t h i s . T h i s is a v e r y s e r i o u s governance issue.The way out is subsidising energy-efficiency (by giving grant for more efficient p u m p s and systems improvement) and, removing subsidies on energy (i.e., power charges to be increased). In such a case, the farmer's payout for electricity may still remain the same, on account of decreased energy c o n s u m p t i o n . T h u s , p o w e r r e f o r m s can f a c i l i t a t e w a t e r r e f o r m s . A n o t h e r issue pertaining to the quality of lifting devices is the use of imported low-cost pumps with very high specific speed and high specific fuel consumption. NABARD is taking up the issue w i t h BIS f o r t h e i r s t a n d a r d i s a t i o n a n d certification. Such large-scale use of pumps of this type mainly imported from China, has been mainly reported in Eastern and North Eastern States. Crop Water Based Design Crop w a t e r r e q u i r e m e n t based d e s i g n of structures and lifting devices are promoted by NABARD for various hydrogeoiogical units for the peak requirement period (rabi crop) to e n s u r e s u s t a i n a b i l i t y and f i n a n c i n g banks advised of various crop commands feasible. (F) Information Dissemination As indicated earlier, optimisation matrix was p r e s c r i b e d f o r s e l e c t i o n of a g r i c u l t u r a l pumpsets based on design discharge, total head and pipe diameter(mandated velocity of f l o w to bring friction losses within 10% of the overall length of piping system). State Level Technical Committees have been constituted under Agricultural Production Commissioners in the states to short list t y p e , brand and a v e r a g e costs of e f f i c i e n t lifting d e v i c e s , essential accessories and protective devices covered under IS-10804-94.The above rules/ prescriptions were created in the past to direct the f l o w of credit appropriately. However,

SSUE 10, 2007 For Private circulation only,,

TECHNICAL DIGEST
(C) Cropping pattern A cropping pattern appropriate for the available water resources in the area may be suggested and public awareness created for its adoption by the extension wing of the State Agricultural Departments, Krishi Vigyan Kendras and ICAR I n s t i t u t e s as an i n d i r e c t g o v e r n a n c e f o r conservation and management. IP) Integrated Water Resource IVIanagement (IWRIVI) IWRM planning including conjuctive use may be incorporated in the development plan of all c o m p l e t e d surface irrigation projects under participatory irrigation management(PIM) as a governance strategy for equitable distribution and w a r d i n g off against water-logging and salinisation in c o m m a n d areas. (E) Coastal aquifers As per the existing regulations, only single phase pumping structures are permitted within a narrow belt f r o m the coastlines for domestic use, and p u m p e d irrigation f r o m ground water is restricted for a distance of 2 km. and 10 km. respectively f r o m the coastline in West and East Coast. However, sea water intake structures have been created of late in the coastal areas upto a distance of 5 kms. f r o m coastline which leads to l a n d - w a r d salt water i n g r e s s i o n . Regulation needs to be strengthened to take care of the situation. 4.3 Economic Aspects of Governance 4.3.1 Property Rights

nowadays banks are financing the structures out of their o w n resources, or the farmer has b e e n self f i n a n c i n g s i n c e l o n g , o f t e n d i s r e g a r d i n g t h e s e n o r m s , r e s u l t i n g in a substantially ungoverned and subsequently overexploited ground water sector. The above situation surely calls for making these norms a part of the State Legislations for better compliance.

: .,

4.2 Other Technicallssues T h e r e are certain w i s e s t r a t e g i e s / t e c h n i c a l best practices being p r o m o t e d in a big way these days. These have not yet become laws, and are similar to the Directive Principles of State Policy of the Indian C o n s t i t u t i o n in the sense that t h e y are desirable prescriptions but, cannot be enforced through a Court of Law, although there have been cases of healthy judicial activism of late which have been supportive of such causes. It is suggested that some of these may have to be brought to the realm of governance, i.e., rules/laws/legislations may have to be formulated, to give them greater force for compliance. (A) Micro Irrigation Drip and sprinkler irrigation systems besides effecting water conservation and management, also e n h a n c e t h e c r o p p r o d u c t i v i t y a n d therefore, may be made mandatory in ground water scarce (over-explioted/critical) blocks, or for water intensive crops like sugarcane in all areas. Quality control as per criteria laid by Bureau of Indian Standards(BIS) have been made mandatory for credit assistance.Further, a variety of low cost innovative micro irrigation systems are being widely used by the farmers, for which the issues of quality standards and c e r t i f i c a t i o n s y s t e m s need t o be s e t t l e d . NABARD is taking up the issue with BIS, as this will promote water conservation and management and make it affordable to even small and marginal farmers. (8) Rain Water Harvesting/Artificial Recharge In v i e w of t h e d e p l e t i o n of g r o u n d w a t e r resources and c o n t i n u o u s decline of water levels, water harvesting techniques feasible for various physiographic and hydrogeological regimes has to be an integral part of the management practices in critical and overexploited areas.

Scarce resources become economic resources and ground water in India has been increasingly becoming s c a r c e . P r o p e r t y r i g h t s are i n t e g r a l t o h o w t h e economic resources are governed. Market systems based on property rights combined with competitive voluntary exchange are widely believed to bring about efficiency of the resource use. These rights are classified into four broad management systems called property regimes, that allow us to expect certain kind of behaviour f r o m other members of the society about their rights and duties pertaining to the resource and smoothen their use and exchange. These four regimes are private property, state property, c o m m o n property and open access (or, nobody's) property.Ground water is generally regarded to be in the open access regime, i.e., anybody can extract as much water as he wants from the ground below, i.e., unlimited rights and no rules. This situation is believed to be one of the major reasons for over-exploitation of resource, i.e., the

i^RHtlirf/^*
4.3.3 Financial Incentives

tragedy of tiie c o m m o n s starts operating. This has to be set right, i.e., the property regime has to be changed f r o m o p e n access t o c o m m u n i t y / s t a t e , if not t o complete private property regime. This w o u l d require a legislation by the state. A suggestion to be debated in this regard is for creating a s y s t e m of e n t i t l e m e n t s . Firstly, t h e r e can be a M i n i m u m Entitlement of a certain quantum of water for all citizens, mainly for domestic use (based on the h u m a n r i g h t s c o n c e p t ) . T h i s w o u l d be available irrespective of land ownership, and it w o u l d be the duty of the State to make it available to all citizens at nominal cost/free. Beyond this M i n i m u m Entitlement, some Additional Entitlement (in the sense of private water rights) may be given to the existing/traditional users of water as per their current usage and frozen at that level. Both these entitlements should be tradeable in the market. Beyond the entitlements, all the water w o u l d be owned by the state and auctioned in large numbers of smaller aquifer blocks/modules to private highest bidders for a specified leased period as done in the case of awarding of oil-field contracts. It is hoped that the market trading of entitlements and private sector c o m p e t i t i o n w o u l d b r i n g in efficiency. The equity w o u l d be taken care of b y the entitlements and sustainability, by state/community ownership and a regulator (an institution). 4.3.2 Water pricing

A n o t h e r e c o n o m i c approach-an alternative to the property rights approach indicated earlier, specially in the area of pollution abatement, is the system of taxes/ subsidies and marketable permits (analogous to the Clean D e v e l o p m e n t M e c h a n i s m s ) . S o m e of these systems are already in place e.g. subsidy for clean and c o n s e r v i n g t e c h n o l o g i e s (e.g. m i c r o irrigation).A suggestion in this direction is to put in place higher taxes for higher HP submersible pumpsets which are responsible for g r o u n d water depletion in a big way. O v e r a l l , an a p p r o p r i a t e c o m b i n a t i o n of all t h e approaches outlined above- regulatory, as well as market-oriented(property rights, and incentives),may work best and w o u l d be more practical to implement. 4.4 Other Economic Issues Besides the foregoing, the following miscellaneous issues also require attention for governance. (A) Insurance for Well failures Lot of well failures take place in hard rock areas putting the farmers to debt trap in the absence of insurance facilities. Financial incentives, in the shape of higher insurance p r e m i u m , budgetary support may have to be put in place to attract the insurance companies and banks to offer services in this area. The failed well c o m p e n s a t i o n s c h e m e w i t h 50:50 percent Central and State Government contribution for failed wells, has been dispensed with for more than a decade. (B) Reuse of treated water Large scale reuse of treated water from urban and semi-urban sewage and industrial effluents m a y be p r o m o t e d f o r i r r i g a t i o n as per appropriate quality standards, alongwith financial incentives, and pricing for suitable c r o p s as p r a c t i c e d w i d e l y in d e v e l o p e d countries to govern scarcity areas. Sum Up

Pricing depends on the kind of property regime in force. It is suggested that after putting in place the property regime as suggested above, all water may be allowed to be priced by their owners as per the play of free market forces of d e m a n d and supply. Currently, some small ground water markets do exist in Western (Gujarat, Maharashtra) and Eastern (Bihar/ West Bengal) regions. The above system of governance looks a bit elaborate and cumbersome, involving elements of human rights, as well as private and state property regimes. But this is understandable in view of the fact that water is a basic human need, besides being a scarce economic g o o d . The new system may have substantial transaction costs and putting in place an institutional framework for the same also may be difficult. But, w e have to also realise that merely the existence of a set of laws, even with tardy implementation, acts as a deterrent for abuse and as a promoter of wise acts; it is better than no laws as is the case now. A pilot project experiment may be taken up establishing the property regime as indicated above and future policy may be decided on the basis of the learnings.

'

5.

This p a p e r has s u g g e s t e d c e r t a i n e x p e r i m e n t a l changes in the rules (technical and economic) and institutions governing the g r o u n d water use in the country. Comprehensive institutional mechanism and regulations a l o n g w i t h market-oriented approaches w o u l d have to be put in place by the Central and State Governments for governance of ground water use in the country to ensure equitable and sustainable water availability for future domestic, agricultural and industrial uses.

ISSUE 10, 2007 For Private circulation only

TECHNICAL DICESf

INTEGRATION OF SHGs WITH DAIRY COOPERATIVES A MODEL CONCEPT

Dr.K.Swaroopa Rani^ and Dr.K.R.Rao^ Status of Dairy in Andhra Pradesli : A n d h r a Pradesh o c c u p i e s 4 t h P o s i t i o n in M i l k Production in India in 2001-2002, with the annual Milk production level of 69.6 lakh MT. Growth rate of Milk p r o d u c t i o n is 6.4 % per a n n u m against national average of 4.5 %. Total number of Dairy Farmers in the state are about forty lakh and number of farmers affiliated to Dairy Cooperatives are only 10 lakh. The total number of poor engaged in dairy Activities are around30 iakh. Of the total milk produced in the state, 8 3 % is p r o c u r e d by u n o r g a n i z e d s e c t o r (larger Proportion by Dudhwalas) and rest 17% procured by oraganised sector. A m o n g organized sector. Cooperatives procure around 8 % and Private dairies procure around 9% of the milk produced. A n d h r a Pradesh Dairy D e v e l o p m e n t Cooperative Federation(APDDCF), an enterprise of farmers for dairy d e v e l o p m e n t , was established in 1981 on A M U L pattern, with the objective of procuring milk f r o m producers at remunerative price, providing technical input to increase milk production, creating infrastructure for processing milk, manufacturing of dairy products, market wholesome and quality milk and milk products to consumers at affordable price. Though it has a vast net work of infrastructure and processing/handling capacity, the federation is facing following challenges : > L o w p a r t i c i p a t i o n of milk p r o d u c e r s in milk cooperative movement i.e only 30 % of villages covered under milk cooperative network Low volume of milk procurement coupled with high overhead cost The unions and federation together has a handling capacity of 32.30 LLPD. However, the capacity u t i i s a t i o n of M i l k c h i l l i n g & p r o c e s s i n g Infrastructure is only 25% 1 Million Farmer Members organized in societies/ associations (25% of dairy farmers covered under cooperative net work) Unable to pay better price for the milk and also unable to p r o v i d e q u a l i t y i n p u t s & t e c h n i c a l services to the members. network and milk handling infrastructure & marketing network of APDDCF SERP is implementing the project initially in Medak, Nizambad, Warangal, Mahabubnagar and Khammam districts and based on success it will be replicated in other areas.

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Zllla Samakhya (ZS) MS 894 District

Mandal Samakhya (MS)

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Block VO 27,350

Village Organization (VO)

Village Self-Help Groups 5,84,000

2.0 SERP Structure The organisational structure of SERP is given below : In the SERP structure, all SHGs federate at village level into Village Organisaton (VO) and it is registered as Cooperative under MACS, 1996. All VOs federate at m a n d a l level into M a n d a l S a m a k h y a (M.S.) and registered as a Society. The M.S.s and VOs implement key project c o m p o n e n t s . The SERP programme is targeting to cover 30 lakh Poor Milk Producers by 2009 so as to provide atleast 30 % of total Household income from dairy enterprises. They are likely to invest about Rs 300 crore on dairy activities every year in next three years totaling to Rs. 900 crore. The main aim of SERP is to provide guaranteed milk market through out the year so as to ensure maximum returns to the producers. 3.0 Partnership arrangement : At village level the VO is the milk collection agency and utilizes the existing infrastructure of DCS. At

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Therefore, the Society for Elimination of Rural Poverty (SERP - a project under taken by Govt, of AP) joined hands w i t h APDDCF to eliminate rural poverty by utilizing its strong C o m m u n i t y based organisations

The article is based on the discussions with Dr. N.K.Mandal, Consultant for Dairy, SERP and Mandal Samakhya of Addakula, Mahboobnagar district. Manager', Chief General Managar^ NABARD, HO 10

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Type and members VMPO (Village Milk Producer Organization) Members are both VO & Non VO Own & Operate Milk Collection Centre Sale of cattle feed& fodder seed to the farmers Own & Operate Bulk Milk Chilling Unit (BMCU) Own & Operate Integrated Live Stock Development Centre (ILSDC) Linkages with Livestock Support Organization for feed& fodder, cattle breeding, and health & hygiene Zilla Samakhya (ZS) Apex body at District level and it is functioning through an Executive Committee (30-40 Cluster level Milk Producer Organization) BAIF, in agreement Mandal Samakhys with MS, will establish along with the assets. Community based Livestock Insurance Price Negotiation for chilled Milk. Forward linkages with processors / manufacturers an Integrated Livestock Development Centre Marketing support Policy Support Feed& fodder, cattle breeding, and health & hygiene 'Support services Vet Services -I- Health Education

3 1 ^ 10, 2007

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(VO/MS/DS) Village Organisation (VO)

Provider of Support services MSs through BAIF or Godrej agrovet

Mandal Samakhya (MS)

Cluster Level Milk Producer Organization (15-20 VPMO)

BAIF (animal breed ing) Godrej Agro Vet (feed)

NDDB APDDCF SERP Private Sector

(ILSDC) at mandal

level

which

covers 15-20 villages and 1000 families

and run for 5 years. After the expiry of the period BAIF will handover

the center to

mandal level the MSs are entrusted w i t h the milk p r o c u r e m e n t f r o m VOs and chilling w h i c h will be transported to Milk Unions processing plant. .At all levels agreement will be signed between APDDCF and MSs or DSs regarding the modalities. The arrangemet or model followed at various levels is as under : Mandal Samakya purchases cattle feed f r o m Godrej A g r o v e t in bulk and also p r o c u r e s f o d d e r s e e d / sapplings f r o m A.H department and then supply to Vos for onward distribution to members of VO. Further, VO arranges for c o m m u n i t y fodder Plot by taking land on lease f r o m panchayat or other sources. The district samakhya negotiates with marketing agencies (here APDDCF) for p r o c u r e m e n t price of milk g i v e n to farmers, margin for MS. ZS also arranges for milch animal insurance either on its o w n or through some private partner like TATA AIG. 4.0 Impact : A b o u t one lakh p o o r accessed Assets (Milch Animals) 90 Bulk Milk Coolers & 1000 Milk Procurement centres set up or revived About 2 lakh litres of milk being procured daily

M i l k P r o c u r e m e n t V o l u m e of C o o p e r a t i v e s increased by 4 times in the operatinal areas. Procurement network of Dairy Cooperatives has became stronger The procurement cost reduced f r o m Rs. 4 to 2 per litre and payment to farmers regularized. APDDCF able to offer better price to milk producers and the increase is over Rs. 1 per lit.

5.0 Projections for 2006-07 : SERP p r o p o s e d to set up 50 BMCUs f 500 Milk Procurement centers to establish direct linkage of 50,000 poor milk producers with the market as well as backward linkages. Also proposed to provide financial support (100 % bank loan) for 20,000 Milk Producers. 6.0 Conclusion : The SERP believes in people's participation. Further, capacity building of people, establishment of forward linkages coupled with backward linkages makes the activity viable, sustainable and also raises standards of living. The model can be duplicated in other parts of the country, w h e r e the cooperative net w o r k is comparatively week.

11

ISSUE 10, 2007 For Private circulation only

TECHNICAL DICEST

MANIPUR - the hidden 'Jewel of India' in food processing

A. Ramanathan, Dr. D. V. Deshpande and Dr. Y. Hara Gopal Pandit Jawaharlal Nehru called Manipur 'a jewel of India' perhaps because 'Manipur' does literally mean 'the land of jewels'. One of the North Eastern States, Manipur is unique in several ways. And, of late, it has started attracting some attention. In this article an attempt is made to highlight the potentials it offers to become a 'jewel of India' in real sense, especially in the area of food processing. The uniqueness of Manipur also arises from the long international boundary of 352 Kms. with Myanmar as it offers enormous trade potential not only with Myanmar but also with other Asian countries. our Govt.'s ' l o o k east' p o l i c y the spate of preferential trading arrangements (PTA) and the free trade arrangements (FTA) with neighbouring countries like Nepal, Bangladesh, Sri Lanka and Myanmar. Basic features To go to the basics, Manipur is a small landlocked State with a geographical area of 22,327 sq.kms. It has two distinct topographical zones namely hills and valley. Hills constitute 90 % of the total area and the remaining 10 % of the area, including the State capital- Imphal, falls in the central valley portion. The State is surrounded on the East by Myanmar, on the North by Nagaland, on the West by Assam and Mizoram on the south (see map). Manipur has rich bio-diversity and is the abode of rare species like 'Shiroy lily' (Lilium Macklinae), the paradise flower, Dzuko Lili (L/7ium Chitrangada) and Brow Antlered deer (Cervus -eldi-idi) locally known as Sangai. It also has the Kelbul Lamjao, the only floating National Park in the world. Resource endowment Manipur state is mostly forest (17,418 sq.kms or 78% of the total geographical area). The climatic conditions are temperate. The average rainfall in the state is 1507 mm- much higher than Indian average. Agriculture plays a vital role, as it is the backbone of the State economy till today. The existing area under cultivation of different crops in Manipur is 2.85 lakh hectares as against the available potential area of 3.25 lakh hectares. Moreover with a range of natural conditions and varied soil and topography, the state produces sizeable quantity of Paddy, Wheat, Maize, Pulses, Oilseeds such as Mustard, groundnut, Soyabean, Sunflower. Cultivation of paddy is the largest both in the plains and hills, and covers 82% of the total cultivated area. Among the varieties of rice, there are t w o local varieties called as "CHAK-HAO POIREITON" having its natural colour (dark violet) and a distinct flavour and "CHAK-HAO" having its natural white colour, scent and distinct flavour.

anipur

ietnam

mbodia

alaysia
Moreh, the international trade center on ManipurMyanmar border, is already very popular with both the sides (Manipur and Myanmar). One has to visit it to appreciate the impact it could have, if, what is happening at Wagah border with Pakistan, could be implemented even partly at Moreh. To boost the potential, the Saurashtra-Silchar Super highway is being extended to Moreh. This combined with the proposed Moreh to Mae Sat (Thailand) highway, is set to make Manipur as the 'Gateway to South east Asia' - as Manipur Government has christened their state. The sentiment further is boosted due to

Chief General Manager\ Deputy General Manager^ & Manager^, Punjab & Haryana RO 12

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Table 1: Area production and yield of major crops in Manipur ( 2002-03)
Name of the crop Paddy Maize Pulses Oil seeds Sugarcane Potato Area {'000 ha) 207.73 17.00 20.12 22.94 3.50 7.00 Production COOOMT) 439.00 26.53 15.19 14.92 172.66 57.76 Yield/ha

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production of major hortultural crops for 2003-04 is presented in Table 2. Other fruit crops like amia (Aonia), olive, figs, mandarin and "Heirukokthong"- a small cherry like fruit- are also grown locally and have potential for c o m m e r c i a l e x p l o i t a t i o n . The quality of the pineapple (Kew-variety) so available in Manipur has distinct taste and flavour. Ginger is another major item cultivated as a cash crop mostly in fields spread over the hills and tribal areas. Ginger grown in the region is similar in quality to that grown in Myanmar and has export potential- both as raw and in processed form. A new thrust area in the state is cultivation of mushrooms. Mushrooms have a low gestation period ensuring fast returns in terms of income and realisation of investments. In India during the past f e w years w i t h the l i b e r a l i s a t i o n of f o r e i g n investments, an increasing number of multinational institutions have invested in with 100% export oriented mushroom production units in the country. Thus, there is, vast scope for commercial cultivation of mushrooms in India and especially in Manipur, Table 2 : Area and production of major horticultural crops in Manipur
Sr. Crop No 1 2 3 4 5 6 7 8 9 Pineapple Banana Papaya Orange Lime/Lemon Passion Fruit Other Fruits Fruits - Total Vegetables Spices 10 11 12 13 14 2003-04

(MTI
2.11 1.56 0.75 0.65 49.33 8.25

Source: Department of Agriculture, Manipur

Next to paddy, maize is the second largest cultivated crop. It occupies about 40% of the gross cropped area and grown mainly in the hills. The area, production and productivity of major crops (2002-03) is presented in Table 1. Wide variety of horticultural crops The state has h i g h l y suitable a g r o - c l i m a t i c conditions for a wide variety of horticultural crops especially on the foot hills, mild hill slopes and along the river banks. Identified potential area by the State Government is estimated at 2.77 lakh Hectares. Out of this only about 24,000 Hectares are presently covered under different fruit crops. Important fruits grown in the state are. Pineapple, Lime/Lemon, Banana, Orange, Papaya , Plum and Passion fruit. Passion fruit, is unique to this state (see Box) . It is used for its 'heavenly juice' It has tremendous opportunity as is visible from area expansion in the last two years Besides spices like chilli, ginger and turmeric and vegetables like. Cauliflower, Cabbage, Tomato, Pea, Squash, Carrot, Pumpkin, etc., are also abundantly grown in the state. The area and

^ ^ A r e a (ha) 10652 1950 1945 1243 1227 1425 8566 27008 7670

Production (MT) 79889 15308 21282 5097 7890 15747 22524 167737 57018

Chillies
Ginger Turmeric Others Total

7324 1265 372 991 9952

29296 12524 4092 6878 52790

Source: Department of Horticulture, Manipur

13

ISSUE 10, 2007 For Private circulation only

TECHNiCAl DieiST
Passion fruit- as the name suggests, is believed to be capable of generating passion! Besides this the juice is 'heavenly' as it invigorates the body on consumption. This plant is native of tropical America and was noted by the Spanish in the early 1500's. There are more than 400 species of which at least 50 are edible. Two main commercial varieties are Passiflora edulis, a purple fruit and Redulis f. flavicarpa, a yeloow variety. Australia is the largest single market for passion fruit and the bulk is used for blending with other juices and in soft drinks.

In Manipur purple variety is under cultivation. The fruit is of the size of egg and the flesh of the fruit contains small black seeds that are suspended in flavorful golden to greenish flesh. Unripe fruits are too tart to eat. The riper the fruit, the better the sweet taste. It makes a delicious treat simply scooped out of its skin with a spoon. The seeds are edible, although when using the fruit in recipes it is best to strain them out. The pulp of this fruit can be used as a flavoring in baking or for mixing cocktails. Canned passion fruit nectar is a delicacy and is found in specialty markets.

which offers ideal weather conditions for the crop. Pleurotus and A g a r i c u s m u s h r o o m (Button Mushroom) varieties can be grown throughout the year in this State. Raw material for cultivation of mushrooms are available locally. Bamboo- unique potentials In Manipur, bamboo grows in wild abundantly along the low altitude hill areas where the rainfall is high. About 3,218 sq. Kms. area is covered with bamboo forest mainly by Melocana bambusoides sp. (Muli) in the reserved, protected and unclassed forest. The available resources of bamboo and bamboo shoots are yet to be commercially utilised fully in Manipur. It is mainly consumed at present in the construction of houses, mat and baskets etc. Tender bamboo shoots can be processed into canned bamboo shoots in brine, candies, chutneys, sweet pickles, fermented bamboo shoots (Locally named as Soibum and Soidon) and Bamboo shoot powder. A b o u t 20-30 t o n n e s of b a m b o o shoots are consumed annually for the production of canned bamboo shoots- a u n i q u e dish in Manipurconsumed locally as well as exported to Myanmar. There is still good scope for commercial utilisation of bamboo in the food-processing sector. Entrepreneurship in Manipur The farming community in Manipur is reasonably progressive and willing to take new initiatives and adopting modern agricultural practices as well as cultivating new crops and new varieties. Manipur has many p r o s p e r o u s t o w n s i.e., I m p h a l , Churachandpur and Thoubal, which are excellent

markets for fresh and processed horticulture produce such as vegetable, fruits and flowers. There is a undercurrent of entrepreneurship which is w i l l i n g to come out and set up variety of processing and value addition units. However, this entrepreneurship is currently suppressed due to difficult law and order situation and social unrest. It is expected that this temporary phase will be over sooner than later as the state as well as central government are taking all possible steps to bring normalcy in the state. The state of Infrastructure In Manipur, poor d e v e l o p m e n t of requisite i n f r a s t r u c t u r e , like g o o d roads, power and communication is adversely affecting process of industrialization and tapping of the vast potential of the state especially in the fields of f o o d processing and exports. Food processing - a sunrise sector for Manipur Global expansion in horticulture trade is one of the most important economic development occurring world over. India as the second largest producer of fresh fruit and vegetable and now is accelerating pace into hi-tech production of horticulture produce especially after launch of Government of India's National Horticulture Mission and several other schemes. At present in India processing of fruits and vegetables is extremely low (below 2%). Value addition to the raw produce is only 7% compared to as much as 23% in china, 45% in the Philippines and 188% in the UK. The low processing also inhibits industry to achieve economic scale which

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results in high per unit cost of p r o d u c t i o n . Moreover, the food processing also has additional advantages to reduce post-harvest wastage, control of price fluctuation, reduction in distress sale by farmers and also generate large employment potential. There is increasing growth in demand of processed products due to urbanization, rising income level and changing life style. These developments offer tremendous opportunities for the growth of sector. Keeping the various factors discussed earlier in view. Government of Manipur is looking forward to develop the Food Processing Industries in the state as this sector plays a significant supportive role in diversification and commercialisation of Agriculture, Horticulture, Fisheries, Poultry, Animal husbandry and Forestry. This sector helps in value addition in the a g r i c u l t u r e , e m p l o y m e n t generation and providing income and production of agro-food products for export. Prospective mobilisation of this sector is mainly concerned with the raw material resources and its potential for future expansion, improvement of infrastructure, investment ability and up-gradation of technology. The Ministry of Food Processing Industries, Gol with a view to facilitate establishment of food processing industry, has introduced a scheme for establishment of Food Park. As per the scheme of the Ministry of Food Processing Industries, a sum of Rs. 400 lacs is available as grant for setting up of the Food Park. Food Park refers to an integrated infrastructure system/estate created w i t h i n a d e m a r c a t e d geographical area for production and marketing of different processed food products. The system

comprises of several food processing units of different types and sizes that make use of common infrastructural facilities created out of a common pool of capital. The common facilities range from; water and electric power; well connected roads; cold storage/chain; warehouse; sewage, effluent and water treatment facility, quality control and testing laboratory; truck terminal; information/ business counselling and problem redressal cell and usual services like bank branch/ ATM, post office, STD/PCO, etc. These facilities could be used for a reasonable service charge by all the processing units operating in the Park. Such common facilities maintained and operated by an external agency reduce the operating time and cost of the candidate enterprises significantly. Government of Manipur is also planning to take the benefit of the scheme by setting up a Food Park at Imphal. In view of the resource e n d o w m e n t , markets and entrepreneurship available in this state, there is good potential for setting up of food processing units in the proposed food park in Imphal. A variety of food processing units could be set up in such a food park as indicated below: Food grain based units like Mini dal mill for pulses, mini grain mill for maize. Rice flakes. Puffed cereals and Bakery units; Fruit & Vegetable based units like Jams, Jellies, Ketchups, Sauce, RTS (Ready To Serve) beverages, Pickles & Chutneys, Canning and dehydration units; Mushroom production units, Spice powders & Oleoresin units for chillies, turmeric, ginger; Bamboo processing units etc.

Conclusion In view of the favourable agroclimatic condition and geo-political advantage, the authors feel that Manipur can be an active contributor to the food processing industry in the country as a whole taking advantage of proposed food park in Imphal, Gol's new "Look East Policy", Technology Mission for Integrated Development of Horticulture in NE States, National Bamboo Mission and IndoMyanmar Border Trade. This would help Manipur in harnessing the immense potential of f o o d processing sector and in turn would make it real 'Jewel of India' of this sector.

15

ISSUE 10,2007 For Private circulation only

TECHNICAl/DICEST

m^
-p" veisssm

FISHERIES OF LAKSHADWEEP WITH SPECIAL REFERENCE TO LIVELIHOOD ISSUES

Shaji Zacharia^ 1. UT of Lakshadweep - An Introduction 2. Fisheries of Laiishadweep

The Union Territory of Lakshadweep (UTLD) consists of 11 inhabited islands and 25 uninhabited islands. The total land area of these 36 islands, which are lying scattered in the Arabian Sea, is 32 sq.km. These islands are essentially coral formations built up on a submarine ridge rising deeply from a depth of about 1500 m to 4000 m along the west coast of India. These islands form an interrupted chain of coral Ato/s on a contiguous submarine bank, covering a distance of about 2000 km. As per the latest census, the p o p u l a t i o n of Lakshadweep is 60650 with 88% literacy, and in this regard, the UTLD can be considered as one of the better developed regions in the country. The economy of the Lakshadweep is influenced by the limitations of it's geography. The major sectors of it's economy are Fisheries (Tuna), Horticulture (Coconut) and Tourism (Island / Coral reefs). The islands have been declared as a "No-Industry Area" by the Government of India considering it's geographical and environmental limitations. Only very limited number of small scale industries were allowed to be set up. Coconut husk defibring units and various coir-fibre based units form majority of the small scale industrial units of the Islands. The workforce of the coir processing units consists mainly of women. Other industrial units include tuna canning plant at Minicoi, hoisery factory at Kalpeni, boat building cum repair units, restaurants and tourists huts, production units for fish pickles, smoked fish, coconut jaggery etc. The islanders depend heavily on mainland for everything except for fish and coconut. Most of the items for daily consumption and materials for utilities and construction have to be transported from either Kerala or Karnataka. Considering these realities of the islands and also due to the strategic geographic location, from the defence and shipping points of view, the Government of India is providing substantial subsidy assistance to almost all sectors of the economy. Assistant General Manager\ Kerala RO

The fisheries of Lakshadweep can be broadly divided into Tuna Fishery, Non-Tuna Fishery (comprised of Sharks, Seer fishers, Rays, Perches) and Marine Ornamental Fishery. The fishing season of the UTLD is from October to May. The major fishing activity revolves around the Pole and Line fishing of the Skipjack Tuna (Katsuonus pelamis). The Tuna constitutes about 74% of the total fish landings of Lakshadweep and Skipjack Tuna contributes 79% of the total Tuna catches of UTLD. It is estimated that about 13% of the total population of UTLD are active, full time fishermen and fisheries sector provide livelihood for about 60% of the people of Lakshadweep. Consequently the UTLD administration has devised several promotional programmes for the sector. The major programme is for the supply of Pole & Line boats (Pablo boats) and country crafts to the fishermen on hirepurchase basis. The development programmes also include the supply of fishing implements and inputs at a subsidised rate. The department also imparts training in Fishing Gear Technology, Navigation, Fishing Technology etc. The real growth in the fish landings of the UTLD was f r o m the year 1980 with the large scale introduction of mechanised / motorised boats. The total fish production had increased from 2400 tonnes in 1980 to the present level of 12800 tonnes. During the same period, the number of specialized fishing crafts had also increased from 194 to 752. It is estimated that the exploitable potential of Tuna from the UTLD waters is 150000 tonnes. The total fishable potential of non-Tuna resources of UTLD waters is 100000 t o n n e s , p r o v i d e d , there is significant development in the introduction and use of nontraditional fishing techniques like Trolling, Long Lining, Perch Traps etc. Recently, with the technical collaboration of NIOT, Chennai, one Fish Aggregating Device (FAD) each were established in the major fishing ground of all

16

3P?f 10, 2007

Prat M R ^ M - I %S[,,.

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Yellowfin Tuna w h i c h together constitute 9 7 % of the total Tuna landings of UTLD. 4.1 Present System of Tuna Fishery

(Rs. Lakh) Investme 2002-03 No. Country Crafts Motorised Boats Nets & Accessories Total 3 Amt 0.85 2003-04 No. Amt 4 1.15 2004-05 No. Amt 2 0.8

33

9.6

0.9

28
31

5.35
6.2

29 8.45

38

9.58

42 11.28

islands. It is expected that t h e r e will be an increase of fish landings to the tune of 2 5 - 3 0 % over the next 2-3 years due to the positive i m p a c t of these FADs. 3. CREDIT SUPPORT FOR FISHERIES I

The fishing season for the UTLD is f r o m October to May. The f i s h e r m e n specialized in the Pole & Line fishing of Skipjack Tuna start f r o m their base early in the m o r n i n g . Each Pole and Line boat will have 10-15 c r e w d e p e n d i n g on the length. They will first fish for bait fishes in the lagoon using specially designed nets of small mesh. The bait fish will be stored live in specially designed tanks onboard the vessel. The boat will now m o v e to the fishing ground outside the lagoon s c o u t i n g for Tuna shoals. Once the Tuna shoal is s i g h t e d , the boat will approach the shoal and t h e f i s h e r m e n w i l l t h r o w live baits at the shoal to keep t h e m t o g e t h e r near the boat. The pole & line f i s h e r m e n w i l l n o w s w i n g into action and hooking of fishes w i l l continue until the boat is filled up or till the shoal gets disaggregated. If the shoal size is g o o d e n o u g h the boat will get filled up in 6090 m i n u t e s . If the shoal scouting is unsuccessful, the boat will return to base after preserving the live baits in f l o a t i n g baskets in the l a g o o n . The average body w e i g h t of a Skipjack Tuna caught by the pole f line fishery is 5 Kg. It is estimated that, one Pole & Line b o a t of U T L D w i l l c a t c h 12-15 t o n n e s of Skipjack Tuna d u r i n g the season f r o m October to May. The studies c o n d u c t e d by CMFRI clearly prove the direct relationship b e t w e e n the number of Pablo boats and the Skipjack landings in UTLD. The ideal w a y to catch the large deep water Yellowfin Tuna is by long lining. The Tuna fishery is a trans-national m i g r a t o r y species. However, considering the size of the EEZ of UTLD, t h e estimates made by the researchers on the sustainable fishing potential as 1,50,000 t o n n e s , can be treated as realistic and also can be taken as the basis for d e v e l o p m e n t planning. 4.2 Present System of Tuna Processing

The G r o u n d Level Credit f l o w f o r Fisheries f r o m the banking institutions d u r i n g the past three years is g i v e n b e l o w : . One of the major reasons f o r t h e l o w off take of bank credit by the sector is t h e availability of hire p u r c h a s e f a c i l i t y f o r c r a f t s a n d gears f r o m t h e G o v e r n m e n t of UTLD. For i n s t a n c e , hire purchase facility for a Pablo boat used in Pole & Line f i s h i n g of Tuna is available f r o m t h e UTLD a d m i n i s t r a t i o n . A t present, the total cost of t h e boat is Rs. 5.5 lakh and a f i s h e r m a n n e e d to r e p a y t h e s a m e as 80 installments within 9 years. This includes a r e p a y m e n t holiday of 3 m o n t h s each every year. The r e p a y m e n t pattern of this soft loan is n o w at an excellent level of 9 8 % , t h a n k s t o t h e g o o d Tuna f i s h e r y and excellent r e p a y m e n t ethics generally prevalent in the UTLD. 4. T U N A INDUSTRY OF LAKSHADWEEP

The Tuna c o n s t i t u t e s 7 4 % of t h e fish catches of UTLD. The total Tuna l a n d i n g s d u r i n g t h e year 2004-05 w a s 9472 t o n n e s . It is, e s t i m a t e d that out of t h e t o t a l Tuna l a n d i n g of U T L D , 7 9 % is of Skipjack Tuna (Katsuwonus pelamis). The other m a j o r resource, w h i c h is g r o s s l y under e x p l o i t e d at present, is the Yellofin Tuna (Thunnus albacares) and it's present share n o w is 1 8 % . The r e m a i n i n g Tuna l a n d i n g s are c o n s t i t u t e d by s o m e of t h e s m a l l e r s p e c i e s like Little T u n n y ( E u t h y n n u s aff/nis), Frigate Tuna (Auxis thazard), Bullet Tuna (Auxis rochie) etc. Tunas are known for their meat value and are known internationally as "Chicken of the Sea". The present study on the Tuna industry of UTLD was based on the problems and prospects of Skipjack Tuna and

A t present, a l m o s t 9 5 % of the Tuna landings are p r o c e s s e d and m a r k e t e d as M a s m i n , w h i c h is a c o o k e d , s m o k e d and dried delicacy developed by the people of UTLD. A b o u t 2 % of the total Tuna catches is p r o c e s s e d as c a n n e d p r o d u c t by t h e canning plant at Minicoy.The remaining p o r t i o n is sold as iced fish. 4.2.1 Masmin Production & l\/larl<eting

The processing of Tuna into m a s m i n is undertaken by the f i s h e r m e n t h e m s e l v e s . Each Tuna will be

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ISSUE 10, 2007 f=6f Private circulation only

TECHNICAL/DIGEST
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cut into four fillet like pieces without bones. These pieces will be slow boiled in a sea water-fresh water mixture for about 6-7 hours. The cooked pieces will be smoked on indigenous kilns for 2 days. The cooked and smoked pieces will be sun dried for 810 days until they acquire h a r d , w o o d like consistency. The masmin, which is used widely in UTLD, will be packed in plastic bags and sent to mainland via Kozhikode port. It will then be exported to Sri Lanka, Singapore, Malaysia and Indonesian through Tuticorin port. The masmin, trade fetches almost 95% of the total income to the fishermen. For producing 1 kg. of Masmin, 5 kg of whole fish is required. At present, the fishermen get Rs.llO/kg of Masmin. In other words they get Rs.20/- per kg of Skipjack Tuna without considering the cost of their labour for processing. The masmin trade is t h r o u g h a traditional channel involving 3-5 middlemen and the fishermen will get the payment only after 3-4 months. The commodity is also subject to frequent price fluctuations. The masmin sector has good scope for quality improvement, product diversification and value addition which may eventually lead to higher income for fishermen. Efforts for capacity building among fishermen for quality improvement coupled with infrastructure development, export market development etc., are essential. It is indicated that a similar Tuna product from Japan, Katsuobuschi c o m m a n d s 200% higher price and wider acceptance in the international market. 4.2.2 Canned Tuna of UTLD

fish per season which is just 12% of the total landings in Minicoy. It is reported that there is a resurgence for canned Tuna industry all over the world mainly due to the increasing interest in health foods. UTLD can benefit from this development by developing the infrastructure for the Tuna industry and as a part of long term strategy, the UTLD administration can think of establishing a modern Tuna cannery each at Minicoy and Agati. The canneries should also be provided with blast freezers and cold storages of a p p r o p r i a t e capacity to handle the catches efficiently. Similarly, the passenger ships which are undertaking regular voyages to mainland can be fitted with reefer holds to transport the Tuna and other fishes to mainland for better returns. 4.2.3 Frozen Tuna for Sashmi Grade

It is estimated that around 50,000 tonnes of Yellowfin Tuna can be fished from the EEZ of UTLD, provided suitable fishing crafts and gears are introduced. The Yellowfin tune with a body weight of 30 Kg and more can be processed as Sashmi Grade Tuna and can be exported to countries like Japan. Sashmi grade produces are for raw consumption and the raw material should undergo specialized handling and freezing onboard followed by air lifting. It is reported that as against the average realisation of Rs.23 per kg of Tuna at present in the UTLD, the Sashmi Grade Tuna can fetch upto Rs. 200 per kg. The enormous potential available under this sector is totally untouched. 5. CORAL REEFS AND THEIR IMPORTANCE TO UTLD

The Tuna meat, which is internationally known as "Chicken of the Sea", is most popular and globally acceptable as canned product. In the UTLD, the canning facility is available only in Minicoy. The canning plant commissioned in 1969, with an installed capacity of 1500 cans per day, is now under the management of Lakshadweep Development Corporation (LDC). The canning plant has outlived it's life and it could utilize only 50% of the installed capacity. The LDC procure Tuna from the Pole & Line boat at the rate of Rs. 22/Kg. The price realisation by the fishermen is comparable as to that from the Masmin. But the Mincoy fishermen prefer to sell the catch to the cannery as they get the payment within a week's time. But the infrastructure impediments allow the cannery to procure only 115 tonnes of

Each island of UTLD, is formed at the centre of an Atol, by continuous accumulation of coral sand which eventually got stabilised by vegetation. Therefore, the survival of these islands fully depend on the survival of the coral reefs and the ecosystem of the coral lagoon. The scientific management of resources within the coral reefs is of paramount importance to the livelihood of the people of Lakshadweep in many ways. It is estimated that the coral lagoon of UTLD is the habitat for about 75 species of Marine Ornamental Fishes belonging to 13 families. Similarly, the lagoon is the source of live-bait fishes, w h i c h is the most essential component of the Pole & Line fishery of Tuna. The studies undertaken by CMFRI shows that the

3 t ^ 10, 2007

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population size of 15 species of fishes, which are most commonly used by the Pole & Line fishermen are crucial in the sustainability of Skipjack Tuna Fisheries of UTLD. The rich bio-diversity of the coral lagoon is also the base for the development of tourism in the UTLD for events like coral reef diving and snorkeling. Preservation of the coral ecosystem; scientific, responsible exploitation of resources for the livebaits of Tuna f i s h e r y and e s t a b l i s h i n g an infrastructure for developing the export of valuable marine ornamental fishes are some of the priorities for ensuring the livelihood security of the people of UTLD. To undertake these conflicting tasks in a balanced manner, active c o m m u n i t y based d e v e l o p m e n t is e s s e n t i a l . C o n s i d e r i n g the importance of this sensitive sector spreading over 4200 sq.km in 36 islands, there is need to develop a well designed lagoon management plan, to undertake capacity building programmes for islands c o m m u n i t y ; and to d e v e l o p i n f r a s t r u c t u r e development for conservation and trade of marine ornamental fishes. 6. (i) SUGGESTIONS FOR DEVELOPMENT The UTLD administration may launch a project for the quality u p g r a d a t i o n and product diversification for Masmin. Modern canneries may be established at Minicoy and Agati.

^^i^^HI

(vii) There is an urgent need to establish a lagoon management plan based on scientific research and active community participation. Capacity : ' building programmes for the selected youths of the islands may be undertaken. . (viii) In order to develop the export oriented sector of marine ornamental fishes t h r o u g h a environmentally responsible manner, there is need to create an institutional framework for trade, capacity building of selected youth to undertake the activity and to establish suitable infrastructure along with effective links for transport and market.
^1'.." ' i ' t " . / ' - ' ' . ' - . ' ''. ''.'

7.

CONCLUSION

(ii)

(iii) Blast freezers and cold storages of adequate capacities may be established at Minicoy and Agati to handle the Tuna landings effectively. (iv) All passenger ships of UTLD should be fitted with reefer holds of adequate capacity for transport offish from islands to mainland. (v) There is a need to initiate inter state/ inter agency discussions to chart out a road map for the d e v e l o p m e n t of the u n t o u c h e d Yellowfin Tuna sector for Shasmi market. The sector requires heavy i n v e s t m e n t for infrastructure and fishing vessels. At the same time issues related to the external investment / external e n t r e p r e n e u r s h i p by legally protecting UTLD may be addressed.

UTLD deserves perpetual focus and attention on its developmental issues due to the strategic location of the islands. Fisheries sector provides livelihood for about 60% of the population of the UTLD. The geographical spread of the UTLD has helped the country in possessing a wider Exclusive Economic Zone after the implementation of the UN charter on Law of the Seas. But at the same time, proper use of our national resources from the EEZ off the islands of UTLD, without affecting the livelihood security of the people of the islands, needs to be addressed at the highest policy making level. The case of Yellowfin Tuna is particularly relevant in this regard. Planned exploitation of these resources w i l l help increasing our fish production, export earnings and employment. Other wise these "trans-national migratory fishes will be caught elsewhere or die of old age." The global resurgence visible in the market of Canned Tuna and Sashmi grade Tuna should the encashed for the benefit of UTLD. The product improvement .for Masmin is an urgent priority. ; * The issues of Tuna fishery, Tuna processing, Tuna marketing. Coral Reef management. Exploitation of marine ornamental fish. Development of Coral Reef tourism etc., are inseperably enmeshed in the islands of UTLD. In view of this, capacity building for different sections of the ULTD society for undertaking various tasks of conflicting interests is to be taken up on a priority basis. Based on a study undertaken by the author at the UTLD, on behalf of NABCONS, Mumbai.

(vi) There is an urgent need to conduct SHG orientation meets in all inhabited islands.

ISSUE 10, 2007 For Private circulation only

TECHNICAl/DICEST
iSd2

SUPPLY CHAIN ANALYSIS OF RAW CASHEW NUTS IN GOA

, ., 1. Introduction Dr. T.Vilasachandran for processing and exports. Our import bill on raw cashew nuts has increased over the years (Table 1). During 200203, India imported 4,00,199 MT of raw cashew nuts from different countries resulting in a foreign exchange outflow of Rs 1,23,000 lakhs. In addition to import, there is lateral movement of raw cashew nuts among major cashew pockets within the country. The price mechanism of the commodity is broadly influenced by the import as well as lateral incountry trade movements. In this context, the supply chain analysis of raw cashew nuts produced within the country assumes relevance. An analysis of supply chain of raw cashew nuts in Goa is attempted in the following section. 2. Marketing net work for raw cashew nuts in Goa

The use of nuts as food goes back to pre-historic times. Many primitive societies of the world subsisted primarily on nuts together with roots and berries. After centuries of neglect, the nuts have come again into prominence as a result of advances in food research. Today nuts form an important part of every day meal in several countries of the world. Nuts in general are high in protein, fat and carbohydrates. They are also rich in many minerals and vitamins essential for the well-being of a human body Cashew nut ranks among the most nutritious f o o d items. Cashew kernel, graded according to the size and colour, is available in the f o r m of wholes and pieces. Contrary to the popular belief, it contains no harmful cholesterol. It is rich in minerals and vitamins, essential for the well being of a human body.

There is an organised marketing net work for raw India has expanded its cashew production over the years and has become the world's largest producer. Currently, we account for about 40 per cent of global production.One of the major problems that the Indian cashew industry faces is the acute shortage of raw cashew nuts produced within the country. All the units in India put together have a processing capacity of over 10,00,000 MT of raw nuts per year, but the domestic production is less than 5,00,000 MT per year. Therefore, India resorts to import of raw nuts Table 1. Time series data ( 1990-91 to 2002-03) on import of raw cashew nut
Year Raw nut import ._ ys9r Quantity (MT) 1990-1991 1991-1992 1992-1993 1993-1994 1994-1995 1995-1996 1996-1997 1997-1998 1998-1999 1999-2000 2000-2001 2001-2002 2002-2003 82639 106080 134985 191322 228109 222819 192285 224968 181009 200584 249318 356566 400199 Value (Rs. Lakhs) 13400 26668 37633 48270 69094 76008 64060 74400 68024 95352 96080 96001 123000 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 12.25 14.50 22.00 20.63 20.50 25.00 29.00 26.40 30.60 42.30 42.00 26.75 25.00 29.50 14.50 19.75 25.40 19.50 21.50 26.00 29.00 21.50 25.00 N. A. N. A. N. A. N. A. N. A. l<ieaia._Kamataka aka Andhra Andhra Pradesh 13.00 17.50 20.75 19.50 23.20 25.50 29.00 30.00 30.00 33.75 34.50 28.25 27.75 N. A. Tamil Nadu 13.19 21.25 23.51 19.60 22.80 27.50 29.00 24.00 24.00 N. A, N. A. N. A. N. A. N. A. Goa 16.75 23.00 29.13 24.13 29.50 32.30 30.15 33.10 33.10 47.00 46.50 33.50 34.10 35.50

cashew nuts in Goa. Availability and trading season of the c o m m o d i t y in the state is f r o m March to May. Due to the highly competitive nature of the cashew trade, growers have f e w marketing problems. Grades and standards for cashew are yet to be introduced in the state as is the case with the rest of India. Quality is generally determined by appearance and cutting tests that traders employ prior to purchase. The raw cashew nut market Table 2 : Price trend of raw cashew nut in Goa vs other states
Price Rs. per Kg.

N. A. - Not Available

Deputy General Manager, ICD, HO

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involves large capital deployment as around 80 per cent of the produce is transacted within a matter of 35 days. 2.3 Raw cashew nuts - Price trend ,

t h e s o c i e t y c o v e r s a r o u n d 5 0 % of the agrarian population in the state. It has 24 collection centers located in the production centres. The society procures cashew f r o m 5000 growers . In 2002-03, the society traded 1193 T raw cashew and realized Rs. 416.54 lakhs. Presently the volume of of raw cashew nuts handled by the society ranges between 1600 T to 2000 T The procurement prices are notified on a daily basis. During the 2004 harvest season, the procurement price offered by the society varied f r o m Rs. 35 to Rs. 36 per Kg. The sales price is fixed at Rs. 1.50 per Kg above the p r o c u r e m e n t price. Processors have to lift the produce f r o m the society/collection centre and have to bear the transportation cost f r o m society/collection centre to the processing centre. A n o t h e r c o - o p e r a t i v e set up viz., A d a r s h Krishi Sahakari Kharedi Vikri Prakriya Samstha Maryadit directly procurs cashew nuts f r o m producers. This cooperative society at Balli, S o u t h Goa also runs a processing unit on lease. T h r o u g h this m o d e , the supply chain is further shortened. The trade turn over of the society f r o m raw cashew nut and kernel during the last four years varied f r o m Rs 233.14 lakhs in 200001 to Rs 300.46 lakhs in 2003-04.

Due to its premium quality, Goan cashew nuts fetch a premium price - the highest as compared to those produced in Kerala, Karnataka, Andhra Pradesh and Tamil Nadu as may be evinced f r o m the data furnished in table 2. This trend remained unchanged during the entire period f r o m 1990 to 2003.

The higher prices realized in 1999 and 2000 are in line with all India price pattern and is attributed to short supply situation. Analysisof the time series data (Table 2) revealed the g r o w t h in price c o m m a n d e d by raw nut in Goa over t h e p e r i o d f r o m 1990 to 2003 and e x h i b i t e d t h e following features Table 3 : Features of price trend of raw cashew nuts in Goa : 1990- 2003 CAGR M a x i m u m Price (Rs/Kg) M i n i m u m Price (Rs/Kg) Price variation (Rs/Kg) 2.4 IVIarl<eting channels ,'; There are 3 prominent marketing channels for cashew nuts in Goa, as outlined below j 5.06% 47.00 16.75 30.25

Farmer

Z4.1 Channel 1 : C o - o p e r a t i v e as i n t e r m e d i a r y between producer and processor Though a portion of the produce in Goa is brought b y i t i n e r a n t m e r c h a n t s a n d t h e a g e n t s of t h e processing units, co-operative marketing societies have a major stake in raw nut trade. Examples of working models of cashew nut marketing are presented in the following section. One of the models based on growers' co-operative, functioning in the state is the Goa Bagayatdar Cooperating

Cooperative

Processor
Fig 1 . Channel 1 - Co-operative as intermediary between producer and processor r.

in the state with co-operative set up as intermediary 2.4.2 Channel 2 : Direct marketing by producer to processor The most resourceful processors contact the p r o d u c e r s d i r e c t l y a n d in the process a v o i d t h e commission agents. In certain instances under this mode of trade, processors establish good bargaining power by providing credit facilities to the producers and entering into pre-harvest contract arrangements.

operative Society Ltd. This Primary Co-operative Society in which the producers are the stakeholders, plays a key role in cashew procurement and trade in Goa. The society's prime motto is to protect farmers' interest. With 8500 horticulture farmers as members,

ISSUE 10, 2007 For Private circulation only

ECHNICM/mStST
between the producer and the processing unit is quite significant. 2.5 Supply chain analysis The supply chain analysis of raw cashew nut in Goa ( Fig 4 ) reveals that the trade route involving the cooperative as intermediary between the farmer and processor is the most popular one. While processors look at it as an assured and reliable source of supply, Chart 1: Share of marketing channels in raw cashew trade in Goa
Channel 3 Farmer-Trader-Processor 10%

Farmer

Processor
Fig 2 : Channel 2 - Direct marketing by producer to processor

2.4.3 Channel 3 : Traders as intermediary between producer and processor A number of wholesale merchants and the processing factories open their collecting centres in important cashew producing areas during the harvesting period. The cashew trade is seldom handled by exclusive traders. Usually, those traders who collect other plantation products also trade in cashew. The petty traders who buy the nuts from the growers also sell the nuts to these collecting centres. Growers also sell the nuts to small traders in primary or village markets who in turn sell to the urban markets. Cashew nuts are brought for sale to the assembling markets largely by the itinerant merchants.

Channel 2 Farmer-Processor 30% Fig 4: Supply chain analysis

Channel 1 Farmer- Cooperative-Processor 60% of raw cashew nut trade in Goa

the farmers favour it for the transparent and competitive pricing mechanism. The direct marketing of the produce by farmers to the processors offers the shortest supply chain. However, there is a school of thought that the pre harvest contract and advance credit, which are integral part of the channel, may make it less advantageous to farmers from price realisation point of view. The marketing mode involving the traders as intermediary between producer and processor has the longest chain and the number of players involved are 4 or more. This channel makes the raw material costly for processors while the farmers are subjected to exploitation by the intermediary tiers.

Farmer

Trader/s

Processor
Fig 3 : Channel 3 - Traders as intermediary and processor between producer

3.

The inference

At the stage when large quantities are collected by middlemen, the processors enter the marketing chain and make wholesale purchases. Due to the presence of intermediaries operating between the primary producer and the processing unit, the spread in price

The emergence of a supply chain model for raw cashew nut trade in Goa is quite evident from the foregoing discussion. From the angles of supply chain management and value chain analysis, this model anchored by the growers' co-operative appears to be beneficial both to producers and processors.

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3^57 10,2007

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Agriculture extension - An innovative thinl<ing

Sri M K De^ and Dr Bhavani Shankar^

There have been several attempts since independence t o i n f o r m and e d u c a t e f a r m e r s t h r o u g h v a r i o u s extension services and mass media such as radio, newspapers etc. on modern agricultural practices. This has gained m o m e n t u m after green revolution in sixties. According to National Sample Survey Organisation (NSSO), 2005, the most frequently accessed source of information related to modern farming was 'other progressive farmers' w h i c h constitute 17 % followed by the 'dealer providing inputs' and 'radio' (13 % ) . Television (9 % ) , newspapers (7 %) and extension w o r k e r s (6%) w e r e s o m e of t h e other i m p o r t a n t sources. Over 50 per cent of the farmers w h o received farm i n f o r m a t i o n f r o m the sources like Radio, TV and Newspapers have actually 'tried' the information or adopted the recommendations, whereas, over 80 % of those w h o obtained the information f r o m 'input dealers' or 'other progressive farmers' tried or adopted t h e m . A b o u t 65 per cent of farmers w h o accessed information f r o m extension w o r k e r s or the 'Krishi Vigyan Kendra' actually tried or adopted it. One of the interesting findings of the survey, contrary to the belief is that, only less than 10% of the farmers are getting the extension services f r o m the huge Government machinery. Input dealers contribute a lot to the farmers as they have regular contacts with the farmers and farmers also gain confidence because of their acquaintance. Moreover, some of them also have access to hassle free credit f r o m the input suppliers. But at the same time, formation provided by the input suppliers w o u l d have s o m e drawbacks, like profit motive and vested interest in favour of the products marketed by them. Despite the various mechanisms e v o l v e d over a period of t i m e , a large section of farmers is still left untouched and an effective service oriented, economical and timely extension service is wanted. ,

of i n f o r m a t i o n and c o m m u n i c a t i o n t e c h n o l o g y to reach the needy farmers. E-sagu is one such model developed by International Institute of Information Technology (HIT), Hyderabad. This has been evolved in association w i t h Media Lab Asia and Acharya N G Ranga Agriculture University, Hyderabad. e-Sagu is a tool for IT-based personalized agricultural extension system. ("Sagu" in Telugu language means cultivation). It aims to improve farm productivity by delivering high quality personalized farm-specific agroexpert advice in a timely manner to each farm at the farmer's doorstep w i t h o u t farmer asking a question. The advice is provided on regular basis (typically once a week) f r o m the sowing to harvesting, which reduces t h e c o s t of c u l t i v a t i o n a n d i n c r e a s e s t h e f a r m productivity as well as quality of agri-commodities. In e-Sagu, the developments in IT, such as database, Internet, a n d d i g i t a l p h o t o g r a p h y are utilised to improve the performance of agro-advisory services. e-Sagu offers the next generation, self-sustainable agro-advisory t o o l that can supplement or complement the existing agro-advisory e-Sagu architecture In e-Sagu, rather than visiting the crop in person, the agricultural scientist delivers the expert advice by g e t t i n g t h e c r o p s t a t u s in t h e f o r m of d i g i t a l photographs and other information. The farmers are the end users of the system and can be illiterate. A coordinator is an educated and experienced farmer w h o can be found in the village. Agricultural Experts possess a university degree in agriculture and are qualified to provide the expert advice. Agricultural Information System is a computer based information s y s t e m t h a t c o n t a i n s all t h e related i n f o r m a t i o n . Communication system is a mechanism to transmit information between farms to agricultural experts and vice versa. If e n o u g h b a n d w i d t h is not available, i n f o r m a t i o n can be t r a n s m i t t e d t h r o u g h c o u r i e r service. However, the advice text can be transmitted through dial-up Internet connection. systems.

At this juncture, innovative models like e-chaupals by ITC, Dr. S w a m i n a t h a n F o u n d a t i o n ' s Knowledge Centres etc., are playing crucial roles, by making use Manager''^ Andhra Pradesh RO

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The farmers are pleased with the expert advice as it is helping them to improve the input efficiency by e n c o u r a g i n g integrated pest m a n a g e m e n t (IPM) methods, judicious use of pesticides and fertilizers by avoiding indiscriminate usage. The benefit to cost ratio assessed to be 3. The evaluation study shows that the e-Sagu farmers accumulated benefits worth Rs. 3820/- per acre in monitory terms in addition to the gain in terms of knowledge. A n agriculture expert can deliver advices to about 150 farms a day. Each coordinator can send crop observation for 30 farms a day. The round-trip advice delivery time is 24-36 hours (farm to lab and back to farmer's house). In Warangal district, the farmers have paid the registration fees and expressed satisfaction with the service. A n effort is being made to start an agri-business center in one of the e-sagu centers by providing multiple services under one roof. The services w o u l d include expert advice, agri-inputs, banking, warehousing, and marketing. T h e e - S a g u s y s t e m is p r o v i d i n g s i g n i f i c a n t benefits to capital intensive crops such as cotton and chilies. It is also very effective for rice. For o t h e r c r o p s , a l t e r n a t i v e m o d e l s have to be developed to make the e-Sagu cost-effective.

Operation of e-Sagu The operation of e-Sagu is as f o l l o w s - A team of agricultural experts w o r k at the e-Sagu (main) lab ( n o r m a l l y in a c i t y ) s u p p o r t e d b y a g r i c u l t u r a l information system. One small computer center (few computers and one computer operator) is established for a group of five to six villages. Appropriate number of c o o r d i n a t o r s w e r e s e l e c t e d f r o m t h e villages. Depending on the crop, each coordinator is assigned a fixed number of farms. The coordinator collects the registration details of the farms under him including soil data, water resources, and capital availability and sends the information to the main e-Sagu system. Every day, the coordinator visits a fixed number of farms and takes four to five photographs for each farm. A CD is prepared w i t h the p h o t o g r a p h s and other information and transported to the main system by a regular parcel service. The Agri-experts, with diverse b a c k g r o u n d ( E n t o m o l o g y , Pathology, A g r o n o m y , Horticulture, Soil Science, etc.) at the e-Sagu (main) lab analyze the crop situation w i t h respect to soil, weather and other agronomic practices and prepare a farm specific advice. This advice is downloaded at the village e-Sagu center electronically through a dial-up Internet c o n n e c t i o n . The c o o r d i n a t o r collects the advice and delivers it to the concerned farmer. Each farm gets the advice at regular intervals, starting f r o m pre-sowing operations to post-harvest precautions. Summary of implementation The development of e-Sagu was started during Kharif 2004. The system has provided the personalized expert advice for each farm once in a week (by analyzing the photographs) to 1051 cotton farms in Oorugonda, Gudeppad and Oglapur villages of Atmakur mandal in Warangal district (Andhra Pradesh, India). The e-Sagu main system was built at MIT, Hyderabad. The system was very successful. Encouraged by results, during Kharif and Rabi 2006, a scaled-up version of clusterbased e-Sagu for 5000 farms has been implemented on Cotton, Chilli, Rice, Groundnut, Castor, and Redgram by selecting t w o to three villages for each crop. The results are very encouraging. Efforts are on to build a self-sustainable and replicable e-Sagu for all crops. The results of the e-Sagu project are as follows: It is possible for the agriculture expert to deliver expert advice based on the photographs and other information, without actually visiting the farm.

Benefits of e-Sagu Powered by the latest developments in ICTs such as database, internet, and photographic technologies, eSagu offers a multitude of comprehensive advantages and provides o p p o r t u n i t y t o i m p r o v e the existing agricultural agro-advisory systems. It provides a high quality personalized expert advice. It is a query-less system and provides expert advice w i t h o u t farmer asking a question. It provides accountable advice. The advice is comprehensive, complete and regular in terms of diagnosis, analysis, advice delivery, follow-up and feedback. It follows a proactive approach that will avert many problematic situations.

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It enables quick deploymeht of services during the times of crises. It reduces cost and saves time and energy of both farmers and agricultural experts. It capacitates rural livelihoods and generates rural employment. It helps in validation of agricultural technology for developing location specific modules and modifications. It aids in successful i m p l e m e n t a t i o n of c r o p insurance scheme by making farm as a unit. It is a cost-effective system. It can be made selfs u s t a i n a b l e by c h a r g i n g a f f o r d a b l e charges. It is a scalable system. The complexity increases linearly w i t h the n u m b e r of f a r m s . It can be incrementally developed to cover all the farms of India without any bottlenecks. It can be developed on the available infrastructure as computers and cameras are already available in many places. It can be i m p l e m e n t e d even bandwidth is not available. It significantly reduces the lag period between research to practice. It shows a great promise in the era of globalization, as it can provide the expert advice that is crucial to the Indian farmer to harvest different kinds of service

crops based on the demand in the world market with quality and assurance. Limitation of the model The interpretation and diagnosis of diseases and pests are purely based on the digital photographs. At times, symptoms of diseases are very much similar to the deficiency or toxicity of essential nutrients. Further, only corrective steps can be advocated and there is no scope for preventive measures. Market intervention has not been integrated in the system, which is a major requirement of the farming community. Conclusion . ;

Nevertheless, the m o d e l has a tremendous potential, looking at the personalized services accountable to the farmers. As on May 2006, the concept is being i m p l e m e n t e d in 8 centres, covering 38 villages in Warangal district of Andhra Pradesh. It has covered 30 field crops, including aquaculture. 3429 farmers having 4894 agriculture farms have been benefited. The e-Sagu p r o g r a m m e has so far delivered 34,544 advises after interpretation of 2,62,039 photographs. It is further gathered that HIT has submitted a proposal to NABARD AP RO to expand its programme to t w o more villages, covering 400 farmers each, in Warangal and K h a m m a m districts. This will definitely create s o m e i m p a c t o n m i t i g a t i n g t h e distress d u e t o overuse of pesticides and other inputs and bring in i m p r o v e m e n t in input use efficiency and profitability.

The text of e-Sagu Is reproduced from the article of Dr B Bhaskar Reddy, Associate Professor, International Institute of Information Technology, Gachibowli, Hyderabad, Andhra Pradesh.

ISSUE 10, 2007 For Private circulation only

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Bamboo Cultivation - Potential and Prospects

Sangeeta Prasad Mehra^ & L. K. Mehra^ 1. Introduction: restrictive rules. There is a need to integrate the efforts at various levels for evolving workable strategies to p r o m o t e the sector, which w o u l d not only be instrumental in addressing environmental concerns but also economic and livilihood security to millions of people in the country. 2. Potential for Bamboo Cultivation :

1.1 The world market for b a m b o o has been valued at Rs. 50000 crore (US$ 10 billion) in 2001 and is expected to g r o w to Rs. 100,000 crore (US$ 20 billion) b y 2015. India, China a n d M y a n m a r t o g e t h e r h ave a b o u t 198 lakh ha of b a m b o o reserves - 80 percent of the w o r l d ' s b a m b o o forests. Of this, India's share is about 45 percent. However, its share in global market is only 4.5 per cent. On the other hand, China alone has captured 50 per cent of the World market, exporting as much as 20 million tonnes of varied products a year. India, a l m o s t 20 years b e h i n d China in commercial production, produces only 3.5 million tonnes of bamboo a year. 1.2 The Govt, of India, has lately c o m e t o regard bamboo as an easily manageable export item that provides high yields, has multiple uses and has the potential to provide e m p l o y m e n t for millions. In this backdrop, the Planning Commission, Govt, of India, has accorded special status to bamboo a n d launched ' National M i s s i o n o n B a m b o o Technology and Trade Development', The target is to capture 27 % of the w o r l d b a m b o o market by the year 2015. 1.3 In tune with the Government policy, NABARD has developed a 'Bamboo Development Policy' to give focussed thrust to develop the sector w i t h an integrated approach. The major objective is to commercialize Bamboo at farmers level. The policy e n v i s a g e s c o m p r e h e n s i v e d e v e l o p m e n t of bamboo resources as a marketable commodity and a linkage of bamboo farmers with bamboo artisans. 1.4 In the context of the above, it is high time w e put bamboo into industrial pedestal with appropriate tie-up arrangements w i t h b a m b o o based industries viz. paper, handicrafts and the n e w e m e r g i n g areas of e c o - f r i e n d l y p r o d u c t s e.g. corrugated sheets, bamboo tiles, bamboo f l o o r i n g , b a m b o o f a b r i c , etc. T h e r e is h u g e u n t a p p e d p o t e n t i a l in t h e w a s t e l a n d s u n d e r purview of Farm forestry/ Agro-forestry in the country. However, the progress under the sector is hampered with lack of information, supply chain m a n a g e m e n t , lack of i n s t i t u t i o n a l c r e d i t and Manager^'2 Karnataka RO 'i!S^MM^WJ**W*^ 26

2.1 A vailability of Land: As per the National Remote Sensing Agency, about 2 0 % of the geographical area of the country, i.e. a b o u t 6 3 8 . 5 l a k h h a . are c l a s s i f i e d as w a s t e l a n d s C o v e r i n g 1 0 % of this land under b a m b o o cultivation can achieve the suggested target of 60 lakh ha under the National Bamboo Mission. 2.2 Availability of Technology:

The 'National Mission on Bamboo Application (NMBA)', established under the TIFAC (Technology Information, Forecasting and Assessment Council), Department of Science and Technology, New Delhi has been s u p p o r t i n g b a m b o o sector t h r o u g h t e c h n o l o g i c a l u p g r a d a t i o n , d e v e l o p m e n t of indigenous capacities/enterprise and linkages with markets. The agency presently is working with about 60 partners, mainly Research institutions. Enterprises and Govt, agencies, across the country for technological intervention and demonstration of bamboo as a business venture, both at cultivation and utilization level. Venture capital support is available t h r o u g h t h e agency, for i n t e r e s t e d entrepreneurs to establish hi-tech bamboo industry in the country. 2.3 Availability of Market:

According to the Planning Commission, the annual market potential for value added bamboo products in India is Rs.4,463 crore as against the current market size of Rs. 2043 crore. This is projected to touch Rs.26,000 crore by 2015. The c u r r e n t size of b a m b o o use in A g a r b a t t i industries itself has been estimated at Rs. 135 crore and bamboo utilized in ice-cream industries, kites, crackers, lathies and fishing rods has been estimated to the tune of 10 lakh tonnes annually.

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The Indian bamboo shoots industry is expected to g r o w at the rate of 2 5 % per annum and capture a market worth Rs. 300 crore by 2015 f r o m the current level of Rs. 4.8 crore. A large potential Table 1: Bamboo - Projected Demand and Supply Country's bamboo economy is expected to grow by over 15% to touch Rs. 26,000 crore by 2015. Bamboo can replace the projected import of timber to the tune of Rs.30,000 crore in the next 20 years i.e. 2025. T h e m a r k e t size f o r b a m b o o p l y w o o d is expected to g r o w to Rs. 500 crore in 2015 f r o m Rs. 200 crore in 2001. It has been estimated that the total market size of bamboo flooring materials will rise to Rs. 1,950 crore by 2015 f r o m the current Rs. 200 crore. The demand for b a m b o o pulp is expected to grow to Rs. 2,088 crore by 2015 f r o m Rs. 100 crore in 2001. The demand for b a m b o o furniture is expected to grow to Rs.3,265 crore in 2015 f r o m Rs.380 crore in 2001. By 2015 b a m b o o scaffolding requirement will rise to Rs.861 crore and for housing purposes the demand will be Rs.1,163 crore. The demand for b a m b o o in road construction will rise to Rs.274 crore and for b a m b o o grids the demand will be Rs. 100 crore by 2015. The demands for miscellaneous industry viz. ice cream sticks, fire crackers, b a m b o o lathis and ladders will rise to Rs. 600 crore by 2015. export market exists for shoots in Japan, Hong Kong, Singapore and Thailand. The Projected demand and supply of Bamboo as envisaged by the Planning Commission is given in table 1. 2.4 Credit Potential:

Further, the financial requirement during the Xth plan for Bamboo Mission is estimated at Rs. 2608 crore under various components, wherein, Rs. 2000 crore has been earmarked for plantation in 20 lakh ha. of area. Considering the cost of plantation as 20,000/ha, the financial gap under the sector is to the tune of 2000 crore, which needs to be supported through credit by way of building private public partnership for investment. The financing institutions can play a significant role . in greening India under the behest of b a m b o o cultivation . Various financing models are available to cater to the need of different clientele, viz. Finance for Nurseries - Centralized/ Decentralized/ Tissue Culture Unit etc. Captive Bamboo plantation by SFDC and Industries Contract farming Area Development Project Joint Forest Management (JFM) - under (RIDF) Forest regeneration/ development- under (RIDF) Financing to Village Forest Committees (VFCs)/ Self H e l p G r o u p s - u n d e r m i c r o - c r e d i t programme. Cluster D e v e l o p m e n t Craftpersons for Artisans and User

Financing for nursery and plantation of bamboo are covered under 'Direct Finance to Agriculture' under Priority Sector Lending. 3. NABARD Initiatives in Bamboo Sector:

The Bamboo Mission envisages expanding the area under B a m b o o plantation by 20 lakh ha. during the X Five Year Plan (10 lakh ha in forest area and 10 lakh in areas outside forest) and overall 60 lakh ha by XI Five Year Plan. This calls for a massive r e q u i r e m e n t of quality planting material viz. 100 crore during the X plan period and another 200 crore during IX plan period. This itself requires an investment to the tune of about Rs. 500 c r o r e . A p a r t of t h e r e q u i r e m e n t is expected to be met through credit. 27

3.1 NABARD, as an apex bank for development of agriculture and rural sector, has identified bamboo sector as " Thrust Area " and has taken distinct p o l i c y i n i t i a t i v e s f o r c r e a t i n g an e n a b l i n g environment for promoting this sector under farm and n o n - f a r m sector. NABARD's Bamboo D e v e l o p m e n t Policy a i m s at m a i n s t r e a m i n g b a m b o o f a r m i n g , p r o c e s s i n g and m a r k e t i n g . Interventions are taken under four broad areas viz. Policy; P r o m o t i o n a l and F i n a n c i a l ; Capacity Building and N e t w o r k i n g and Coordination. A ' B a m b o o Cell' has been created at NABARD's Head Office, M u m b a i with Nodal Officers in all the Regional Office for a concerted effort. 3.2 A p e r s p e c t i v e p l a n f o r f i n a n c i n g b a m b o o plantations by banks in 3 lakh ha potential states.

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Organic manure mixtures along with fertilizers containing NPK should be applied in the planting pit at the time of planting. Weeding and protective irrigation are essential in the first t w o years of p l a n t a t i o n f o r s t a b i l i z a t i o n of the plant. The plantation needs to be protected f r o m fire and biotic pressures for initial 3-4 years, thus fencing or d i g g i n g c a t t l e - p r o o f t r e n c h a r o u n d t h e plantations is advisable. c. Management: Proper management practice is the key to the success of bamboo plantations as the yield realized f r o m the b a m b o o plantations is d i r e c t l y d e p e n d e n t on t h e soil n u t r i t i o n and cultural operations. 'An eight year bamboo clump can have about 90 culms, of which 70-80 culm are destroyed, if left unmanaged'. Bamboo is a h e a v y f e e d e r a n d e v e n a rich soil b e c o m e s d e p l e t e d after a f e w y e a r s . On an a v e r a g e . Bamboo plantations removes about 2300 kg of nutrients per ha in a period of 6 years. Therefore, soil supplements in the f o r m of organic manures and fertilizers must be added to the clumps every year. A little bit of soil working around the clumps enhances production of new culms and is a must management practice. From 4th year onwards, the d e a d / d y i n g c u l m f r o m t h e c l u m p m u s t be r e m o v e d t o a v o i d c o n g e s t i o n . P r u n i n g of excessive t h o r n s is necessary to maintain a hygienic conditions of the clump and must be carried out every year f r o m 3rd-4th year onwards. Insect and diseases, if any, need to managed, t h o u g h b a m b o o s have c o m p a r a t i v e l y f e w problems of insects or pests. Harvesting: Well-managed commercial bamboo plantation matures within 4-5 years and can be harvested every year. Selection fellings rriust be practiced, and should be done in summer months. For harvesting, the mature culms should be cut at a height between first and second node above the ground level. Harvesting should be done in a horse shoe-fashion (instead of peripheral cuttings) to avoid congestion of the clump and give space for the newly emerging clums and thus give a better yield. As a good management practice, a few mature culms should be left well distributed in the c l u m p to provide support to the current year's culms. All immature culms (less than 4 years old) must be left to mature. The cost for raising Dendrocalamus strictus on wastelands, under rain-fed condition is Rs. 23,600 per ha. (capitalized for 6 years). The detail break up of unit cost is given in Annexure II.

with an investment outlay of Rs. 1,000 crore during Tenth Plan p e r i o d w a s f o r m u l a t e d . Bankable Model Projects for Bamboo have been prepared to suite different areas/ cliental. A n Area Development Project for Bamboo cultivation in Barak valley of Assam has been developed which envisages covering 2500ha of area under bamboo cultivation over a period of three years. RIDF assistance has been provided to APFDC for raising bamboo in degraded forest. 4. Techno - Economic Parameters of Financing: Bamboo

4.1 Nursery: Bamboo can be raised through seeds, rhizomes, c u l m cuttings as also t h r o u g h tissue culture t e c h n i q u e s . Nursery c o u l d be centralized or decentralized. While Centralized nurseries are expected to be developed by Forest Department. Forest Development Corporation and E n t r e p r e n e u r s , d e c e n t r a l i z e d n u r s e r i e s are expected to be taken up by VFCs, SHGs or farmers to cater the local requirement of bamboo seedlings. The Cost of for raising a decentralized nursery (1000 plants) is about Rs. 25,000. Detail break up of the unit cost and economics is given in Annexure I. 4.2. Bamboo Plantations: Bamboo can be raised profitably on wastelands to yield recurring income for 20-30 years. The techno- economic parameters of raising bamboo is given as under: a. Site and Composition : Bamboo is non-exacting, hardy and drought-resistant in nature and posses a wide range of soil/climatic adaptability and g r o w on marginal and degraded land, elevated ground, along field bunds and river banks f r o m coastal regions to mountain slopes (upto 4000m above m e a n sea l e v e l ) u n d e r m o i s t t o s e m i - a r i d conditions. Bamboo however, cannot withstand saline soils, alkaline soils and waterlogged areas. Bamboo can be raised as block plantations in degraded slopes, watershed areas, and cultivable w a s t e s or u n d e r j o i n t F o r e s t M a n a g e m e n t programmes. It also c o m b i n e well w i t h grasses, pulses, oilseeds, soyabeans and shade crops like ginger turmeric, cinnamon, etc. and can be raised under various agro-forestry systems. b. Planting Tecimique: Monsoon is the best time for planting of the nursery-raised plants in the field. About 1 year old plants may be planted for better survival. The commercial spacing recommended to obtain good crop varies f r o m 5m x 4 m to 6m x 6m. Plants are planted in pits of 45 cm x 45 cm x 45 cm size.

d.

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5. Limitations and Required Interventions:

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Despite t h e available potential under the B a m b o o sector viz. availability of land, availability of technology, availability of credit, as also. Government thrust, the sector has not gained the desired m o m e n t u m in the country. The main limiting factors in the p r o m o t i o n of the sector are: a. Lack of awareness: Bamboo has been traditionally raised, to a limited extend, in village commons and homestead gardens. However, it still remains a forest species in respect of industrial use and commercial plantations. There is a need for changing the 'forestry mindset' to the 'farming mind set' and creating awareness on the commercial viability and profitability of the species. In this regard, extensive awareness and capacity building programme are required at all level viz. farmers, extension workers, banks, user i n d u s t r i e s , etc.. T h e Research & Development (R&D) under the sector needs to be complimented with awareness creation, demonstration and extension supportfor a multiplier effect. SHGs, VFCs, Farmers clubs, etc. could be used as vehicle for such extension programme. Harvesting and Transport restrictions: It is evident, to meet the domestic and International demand of bamboo, the 'raw material' has to necessarily come from the private sources. The Indian Forest Act. 1927, defines bamboo as a " forest produce", and the species attracts the felling and transit restrictions under most of the States Forest Rules. Procedures f o r taking p e r m i t s a r e , m o r e often t h a n n o t , cumbersome, time consuming and harassing. These legal restrictions, detract farmers/ entrepreneurs f r o m raising bamboo on their private wastelands on commercial basis and is one of the most crucial issues in promotion of bamboo sector in the country. The probable option lies in exemption of Bamboo from the restrictive harvesting and transit rules, as in case of many other agro forestry species or at least simplifications of these rules. Land Ceiling Act: The Land Ceiling A c t is one of the deterrent factors for entrepreneurs interested in taking large-scale industrial plantations of the species. Plantation crops s u c h as tea, coffee, cardamom and rubber have been relaxed f r o m the purview of Land Ceiling Act. Similar relaxation needs t o be extended for the b a m b o o sector. Policy for leasing revenue wastelands for forest plantations : A l a r g e p o r t i o n of a v a i l a b l e wastelands, which could be profitably used for raising b a m b o o , are under t h e c o n t r o l of t h e Revenue Department. Such lands are neither being

developed by the Department nor leased away to the interest entrepreneurs for development. There is therefore desirable that the State Govts, evolve s u i t a b l e p o l i c i e s f o r l e a s i n g of t h e r e v e n u e wastelands to the farmers/ SHGs/ entrepreneurs/ industries for raising forest plantations for industrial use. Andhra Pradesh, Tamilnadu and, Chattisgarh have come up with such policy. Other States may also f o l l o w t o e n c o u r a g e t h e public p r i v a t e partnership for greening the wastelands. e. Need for Organized Supply Chain Management: Though a vast market exists for the bamboo sector, there is a need for an organized market with assured m i n i m u m price regime to encourage the small farmers t o take up bamboo plantations on their private wastelands. Contract farming by user industries needs to be encouraged. There is also a need f o r p r o m o t i n g 'Bamboo Governance' and encouraging the b a m b o o products at the Govt. Offices, Corporates and Public-sector undertakings to pave the w a y for large scale demand, supply, production of b a m b o o - based utility items and regeneration of b a m b o o b y strengthening the supply chain Need for rationalization of taxation and price fixation: In some States, viz. Karnataka, bamboo raised under private sector is subject to tax by the forest d e p a r t m e n t , as also b y the APMC. This needs t o be rationalized. Similarly, the price fixation m e c h a n i s m b y the Forest Department must be rationalized to ensure suitable remuneration to growers viz. a viz. the industries. Need for incentives for raising bamboo plantations: Cultivation of Bamboo under the farm sector is a n e w activity and may be given fillip through extending capital/ interest subsidy to the f a r m e r s / entrepreneurs f o r raising b a m b o o plantations. Conclusion:

b.

/.

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6.

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d.

From a 'poor mans t i m b e r ' , b a m b o o is fast emerging as a 'Green Gold'. Markets are growing and offer new opportunities for p r o m o t i o n of bamboo as alternative t o w o o d as also other products. This is a golden opportunity for the farmers, entrepreneurs, industries. Banks, as also govt, agencies to tap the potential under the sector for economic, ecological and social gains. However, policy a n d operational bottlenecks, viz. restrictive harvesting and transit rules, land ceiling act, double taxation of b a m b o o , non-remunerative price regime, lack of organized market, lack of awareness a m o n g entrepreneur a n d banks, etc. needs t o be addressed to give the desired momentum to the sector.

ISSUE 10, 2007 For Private circulation only

TECHHICftl/DiMST
Annexure

Unit Cost of Decentralised Bamboo Nursery of 1000 Sq. Mt. (10000 seedlings)
Techno-economic parameters Spacing : 6m x 6m No. of plants per ha :278 Mortality replacement :10% No. of harvestabie plants per ha : 90%
S. No. A 1 2 3 4 f 5 if 6 7 8 Particulars of Works Avg. wage rate Rs. 50 per Man Day Interest on term loan 12% margin 1 0 % of the unit cost Species Dendrocalamus strictus. Unit Cost (Rs.)

B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Capital Cost 2MD Land preparation/ Sitr development LS Fencing (Bamboo/ live hedge) LS Repair and maintanence of irrigation source LS Tools and Implements LS Water Tank - 1 10 MD Layout and preparation of poly beds ( 24 beds of 10x 1 m size) LS Shading Net of 80% shade with installation or thaching by grass Subtotal Contigencies (5% of subt total) Total Capital Cost (A) Recurring cost @Rs.1000/year Land rent (1000 Sq. mt) 2MD Preparation of seed beds (2 beds) of 10m X imt LS Seeds Polybags (6x9 of 100 gauge) 200 PB/Kg Pot mixturesand manure, earth (2 kg/bag) OM includingLoading ., unloading 2 0 M T @ 120/Tand 10 MD fertiliser, 10 gms/ polybags (in two doses) 100 kg Plant protection chemicals LS Sowing on seed beds 1 MD Weeding and Hoeing 5MD Picking up from germi beds 2MD Filling Polybags 50 MD @200 PB/ MD Irrigation (labour cost) 10 MD Application of fertiliser 2MD Application of pesticides/ insecticides 2MD Maintainace of path and channels 2MD Maintenace of pumpset LS Subtotal Supervision/ management cost 10% of subtotal Total recurring Cost (B) Total (A + B) Margin @ 10% Bank Loan Income Sale price per seedling/ Poly bag Installed capacity of nursery Capacicity utilzation lYr. II Yr. onwards 30

100 500 500 800 2000 500 4000 8400 420 8820 1000 100 1000 2400 2900 1000 200 50 250 100 2500 500 100 100 100 2500 14800 1480 16280 25100 2510 22590

3 10000 60% 85%

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Annexure II

Unit Cost of bamboos (Dendrocalamus strictus) in Wastelands (One ha model)

Techno-economic parameters Spacing : 6m x 6m No. of plants per ha :278 Mortality replacement :10% No. of harvestable plants per ha : 90% S. No. Particulars of Works Unit 1 1 2 Site preparation, alingment and staking Digging of pits (45 cm x 45cm x 45cm) and refilling Cost of Plants including transport and replacement plants ( 278/28)) Planting & Replanting expenses @50 plants per MD Cost of Insecticide Cost of FYM @ 5kg / pit/year Cost of Fertilizer @ 0.1kg / plant/year Weeding in first two years Soil Working (per year) Pruning from IV year onwards. Plant Protection Irrigation cost - 3 per annum for 2 years Rs. 750/- per irrigation Fencing @ Rs.6/- RM / cattle proof trench Sub Total Contingency @ 5% Grand Total (Unit cost taking first 6 yrs of expenditure) round off Unit cost per ha. with a spacing of 6m x6m Margin @10% Bank loan @ 90% 1160 10440 450 4050 150 1350 200 1800 200 1800 200 1800 LS LS @ Rs. 4/pit 2000 1112 112 2 Avg. wage rate Rs. 50 per Man Day Interest on term loan 12% margin 10% of the unit cost Species Dendrocalamus strictus. Cost (Rs.) per year 3 4 5 6 2000 1224 Total (Rs.)

Rs. 3.00/ plant 6MD/1MD

834

84

918

300

50

350

5 6 7 8 9 10 11 12

LS Rs. 0.3/kg Rs. 8 / kg 10MD/8MD lOMD/yr 10 MD LS

150 417 222 500 500 417 222 400 500 500 500 500 250 2250 250 2250 250 250 500 500 250 500 500 250 417 222 417 222 417 222 417 222

150 2502 1332 900 3000 1500 1500 4500

13

2500 11035 552 11587 4285 214 4499 1389 69 1458 1889 94 1983 1889 94 1983 1889 94 1983

2500 22376 1118.8 23495

11600

4500

1500

2000

2000

2000

23600 23600 2360 21240

Recurring Expenditure : # Rs. 3700/- towards the maintainance (pruning, soil working, fertilization) and harvesting cost.

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ISSUE 10,2007 For Private circulation only

TECHNIGAl DIGEST PLANTATION & HORTICULTURE

issues. The important issues identified at the national level are indicated below : ^ ' Non-availability of adequate quantity of quality planting materials. Inadequate extension services from the State G o v e r n m e n t s including farmers training on modern technologies, post harvest handling, etc. Absence of adequate marketing infrastructure. Price fluctuation in horticulture products. Inadequate post harvest management facilities including processing infrastructure. Grossly inadequate manpower at bank branch level, particularly technical to take care of horticultural projects. Banks' apathy towards horticultural activities. financing

The Thirteenth Business Development IVleet of Plantation and Horticulture Discipline of NABARD was held at Tocklai Experimental Station, Jorhat, Assam during 20 - 21 November, 2006. The meet was i n a u g u r a t e d by Dr K.G.Karmakar, MD, NABARD. He stressed on the need to achieve financial inclusion by involving all agencies and the people. He also stated that horticulture and plantation / tree based farming models are best suited for the North Eastern Region and we need to nurture good NGOs to take this mission forward. Dr. M.Hazarika, Director, Tocklai Experimental Station, in his address, stated that the future of the Indian tea industry lies in the production of value added teas, development of diversified products from tea and in reducing production cost. Dr P.G.Rao, Director, Regional Research Laboratory(RRL), J o r h a t also a-ddressed the participants and highlighted the thrust areas of research being undertaken by RRL, Jorhat. Presentations were made by Dr.S.S.Bagel, Vice Chancellor, Assam Agricultural university, Jorhat on New Vistas of Agricultural Research in India with an accent on C o m m e r c i a l P r o d u c t i o n and Processing of Horticultural Crops of North Eastern States and by Dr.Jayanta Madhab, Advisor to Chief Minister f Assam, on the Prospects & Problems of Horticulture Development in the North East . The business session of the meet discussed the state wise developments and the policy and operational

Lack of entrepreneurship acceptable to the banks in most states. Inadequate coordination amongst different agencies such as those concerned with horticulture development with institutional credit facilities. Insurance coverage. Non availability of updated land records to facilitate mortgaging. Small fragmented land holding. Stronghold of middlemen in marketing the horticultural products. Poor connectivity from farms to road heads to markets.

A field visit was undertaken to a tea estate and a tea factory run by Tata Tea. The diversification programme within the tea estate into floriculture and allied agricultural activities, initiated by Tata Tea gave the participants a first hand insight on the enterprising ability of the Company in their effort to revive the tea industry.

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afe 10, 2007

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WATER RESOURCES DEVELOPMENT AND MANAGEMENT DISCIPLINE

Tlie Business Development Meet of Officers of Water Resources Development and Management Discipline w a s h e l d at W a t e r T e c h n o l o g y C e n t r e (WTC), Coimbatore f r o m 7 - 9 August 2006. The objective of the meet was to take stock of the changing scenario, make plans for the future and to draft a plan of action for 2006-07. The Meet was attended by 36 officers f r o m various Regional Officers and HO of NABARD. The Meet was inaugurated by Shri K.V. Ragavulu, CGM, Tamil Nadu RO. In his inaugural address Shri Ragavulu flagged issues like pricing of water, efficiency of power and irrigation for discussion. He also touched upon the Vaidhyanathan C o m m i t t e e and the X Finance Commission. Dr. M.V. Rangaswami, Director, Water Technology Centre, Tamil Nadu A g r i c u l t u r a l University(TNAU), in his address, emphasised on the sustainability aspects of water resources management projects. He highlighted the urgent need for water resources management t h r o u g h the use of micro irrigation system. He feared that Tamil Nadu may soon become another desert as the water table had gone d o w n in many parts of the state. Shri J o h n Kurien, CGM, TSD gave a brief presentation on the overview of activities of WRD&M/MI discipline. He also released the national status paper prepared on Minor Irrigation during the occasion. T h i s w a s f o l l o w e d by presentations by resource persons from Central Ground Water Board, Ministry of Agriculture, Go!, faculties from Water Technology Centre, TNAU, Jain Irrigation Limited and senior officers in the Irrigation sector. Shri John Kurien guided the deliberations of the Meet and spoke in detail on the Vision for Future for the Water Resources Development and Management Discipline Officers. S o m e of the i m p o r t a n t national level issues that emerged during the meet are : Exploringthepossibility of supporting micro level s t u d i e s in o v e r e x p l o i t e d areas by t h e State Government under R&D Fund of NABARD. Ensuring exploration of recharging ground water in project areas, extraction of water only f r o m deeper aquifers by incorporating the same as a part of our terms and conditions f o r projects sanctioned under RIDF Examining the technical details of efficient and low cost foreign made p u m p sets since the same are not eligible for NABARD refinance due to lack of BIS certification. Revisiting the existing NABARD circulars on eligible investments in critical areas and areas 33 w h e r e g r o u n d w a t e r is o v e r e x p l o i t e d . Categorisation of blocks as per GEC-1997 to be notified to all SLBCs for compliance. Emphasis on issues like ground water legislation, participatory irrigation management, revival of failed wells c o m p e n s a t i o n scheme and c o n j u n c t i v e use of w a t e r specially in canal c o m m a n d areas. P r o m o t i o n of m i c r o i r r i g a t i o n a c t i v i t y f o r s u s t a i n a b l e u t i l i s a t i o n of w a t e r r e s o u r c e s especially in critical and over exploited ground water areas and other water scarce areas. There is a need for standardisation of low cost micro irrigation systems and their wide scale availability. Ground water governance is the need of the hour. Some states like Govt, of Andhra Pradesh has enacted APWALTA 2002 & 2004 to promote water conservation, regulate exploitation and use of ground and surface water. Formation of WUAs should be made mandatory and they may be involved right from the planning stage and overhead and maintenance should be entrusted to t h e m . The security deposit / power connection charges and recurring charges should be rationalised in order to enable small / marginal farmers to be able to use power supply. This is in view of the n o n - a v a i l a b i l i t y of p o w e r ( b o t h in t e r m s of quantity and quality) which is acting as a major deterrent for operation of agricultural pump sets. Impact assessment studies of Ml investments and correction action are required in some states The existing MIS needs a relook to capture the f l o w of i n s t i t u t i o n a l f i n a n c e under d i f f e r e n t investments of Ml discipline.

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1 ^ ^ ISSUE 10, 2007 For Private circulation only

TICHHICftl/DIUEs"

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INFORMATION TECHNOLOGY IN DAIRY INDUSTRY

NABARD has supported a research Project for using i n f o r m a t i o n Technology in Dairy Sector. The project has t w o major parts viz., A. Herd Health : The first major part is to collect data on health of animals, e x a m i n e the clinical data as revealed f r o m blood and dung samples collected, apart f r o m individual animal data and w o r k out the average for each village (treating each village as a herd). The findings in each village is c o m p a r e d w i t h accepted norms and the p r o b l e m s existing in each village is identified and solutions s u g g e s t e d . This has b r o u g h t out revealing results. For e x a m p l e , in a village the Haemoglobin are low and Red Blood iron Corpuscles counts indicating An action list generated on the animals tells the village level worker, which are the animals to be examined for heat or pregnancy, which animals are expected to calve etc. An alarm list is also generated which gives him a list of animals which are having delayed heat, fertility problems, low milk yield etc. This is an excellent tool in the hands of paravet.s and veterinarians, w h o supervise the village level workers, as they can easily identify and treat the animals before they actually become sick. In dairy farming, if a heat Similarly, the study has b r o u g h t out that, average c a l v i n g i n t e r v a l d i f f e r s b y m o r e t h a n 90 d a y s b e t w e e n villages indicating that, in s o m e villages breeding m a n a g e m e n t needs to be i m p r o v e d . In some area, soil analysis reveals, calcium is adequate and there is no need for calcium supplement in feed of animals. This type of analysis can help to prevent p o o r p e r f o r m a n c e and m i n e r a l m i x t u r e s h a v i n g required ingredients only are used, which saves cost. B. Performance Recording : The second major part is about the performance recording of dairy animals. In our country, the most i m p o r t a n t factor affecting t h e efficiency of animal i m p r o v e m e n t is, lack of records. T h e p r o j e c t has e m p l o y e d suitable h a r d w a r e , w h i c h can be u s e d by v i l l a g e l e v e l w o r k e r s for r e c o r d i n g t h e p e r f o r m a n c e of dairy animals. The software d e v e l o p e d , can be used by milk unions, private dairy units and even G o v e r n m e n t cattle f a r m s . (1) Development of Software Project envisages r e c o r d i n g t h e data of all animals f r o m villages by field level para-veterinarians by a handheld PC (simputer), w h i c h are transferred to PC at the milk union f o r analysis, identification of p r o b l e m s and suggesting remedial measures. '34' (2) At the livestock centre in the village level which maintains data on all animals. The plan is to put-up t o u c h screen so that, farmers will have access to i n f o r m a t i o n on o w n animals. This At the farm level, the owner has approximate figures. Animals can have a chip embedded in the body which can store all information. Data Management The data is available at three levels. is missed (animal not inseminated), 21 days milk production is lost. for future use. For the first time in our country, some effort has been made to record the observations The s o f t w a r e " H e r d m a n " used for analysing t h e data f r o m the village centres, provides the following report: ^ / ,

(i) Breed Master : Breed-wise data, (ii) Farm Master : Farm-wise data, (iii) Staff Master : Staff-wise data, (iv) Parameter Master : Parameter-wise data and (v) Source Master : Source-wise data. Collection of Data and Follow- up

deficiency. This result was further c o n f i r m e d f r o m e x a m i n a t i o n of f a e c a l s a m p l e s , w h i c h iron level in b l o o d of animals. have been suggested. showed presence of w o r m s w h i c h suck b l o o d and reduce Suitable remedies

^tetPFr 315=^^
PC also will get results of analysis done at milk union level which will help farmers to understand t h e local p r o b l e m s a n d use t h e r e m e d i e s suggested. For example, iron deficiency and reason for this like w o r m infestation. Classifying data breed-wise and unit-wise, generates average results which can be compared with accepted norms and level of performance at the unit or village level can be zeroed on. ; (3)

3jg; 10.2007. f ^ Ci^ct-l %f

At milk union level which maintains all data on all animals covered by it. Our project supports maintenance of data at this level only. However, the milk unions is interested in maintaining data at village level, so that, feedback to farmers is easy. From the project, dairy farmers are benefitted through reduction of infection in animals and feeding cost and increase in milk production.

ON FARM RESEARCH ON PULSES - MAJOR FINDINGS

NABARD has sanctioned the above R&D project to Tamil N a d u Rice Research I n s t i t u t e , A d a t h a v a i , T h a n j a v u r D i s t r i c t , Tamil N a d u w h i c h has been completed successfully. The existing viable technologies adopted by the pulse g r o w i n g farmers and constraints in a d o p t i n g the improved technologies in the Cauvery c o m m a n d area of T h a n j a v u r a n d N a g a p a t t i n a m d i s t r i c t s w e r e identified through a comprehensive survey conducted a m o n g the selected farmers, f o l l o w e d by on-farm experiments conducted during 2000-2003. There is significant improvement in adoption of the technology by the selected farmers when compared to pre-project survey. Major findings that emerged f r o m the studies are follows: 1. Pulses are g r o w n in rice-fallow utilising the residual moisture and the moisture obtained f r o m dew. The seed is broadcasted in the standing rice field, 5 to 10 days before the harvest of rice w h e n t h e soil m o i s t u r e is o p t i m u m , i.e., seed should get embedded in wet waxy layer. Black gram and green gram are the t w o main pulses g r o w n . 2. In black gram, high yielding varieties like A D T 1 , ADT2, ADT3, ADT4 and in green gram ADT2 and ADT3 are f o u n d to be suitable for ricefallow situation. 3. To realize higher yields f r o m rice fallow, the correct time of sowing is very important. The For new Cauvery Delta area where irrigation facility is available, black gram variety ADT5 is highly suitable through suitable foliar spray of nutrient mix. Foliar spraying of 2 % ADP -t- 40 PPM NAA on 25 and 40 Days gives higher grain yield in ricef a l l o w black g r a m (ADT3) w i t h increase in number of pod on plant and in number of seeds per pod. The average yield of sample farmers was 639 kg/ha with m i n i m u m of 375 kg/ha and m a x i m u m of 1250 kg/ha. crop will give higher yield when sown during 15 January to 15 February. O p t i m u m plant p o p u l a t i o n is the basis for higher yield. O p t i m u m seed rate of 30 kg/ ha is recommended. The gaps are to be filled with p r e - s p r o u t e d seeds t o m a i n t a i n o p t i m u m population. To prevent the spread of seed borne diseases, pre-seed treatment with fungicide/ bio-control agent is to be resorted. For this seed treatment with Trichoderma viride @ 4 gm/kg of seeds or Pseudomonas @ 10 gm/kg or Carbendazim @ 2 gm/kg must be done to prevent root rot disease. For leaf crinkle disease, spraying with Dimethonate @ 500 ml/ha is recommended. To control leaf beetles and pod borer, Neem Seed Kernel extract @ 5% or Neem Oil @ 3% can be sprayed.

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10, 2007 For Private circulation only

TECHNICAL DIGEST

INCENTIVISING FARMERS FOR ORGANIC FARMING

B.K. Samal and H.N. Bhuyan Organic farming is a production system of crops that avoids the use of synthetic and chemical inputs like fertilisers, pesticides, growth regulators and livestock feed additives. Application of genetically modified organisms and irradiation of f o o d stuffs are prohibited under organic farming system. It is a system approach utilising natural cycles and biological interactions for c r o p p r o d u c t i o n and p r o t e c t i o n . This m e t h o d of farming produce f o o d for healthy consumption and at the same time protect the soil and environment. India as a leading agriculture producer and with a tradition of organic farming has unique opportunities to capture growing organic markets both in fresh and processed f o r m s , in the domestic and export market. However, desired growth is not there due to lack of awareness and constraints faced by farmers for going organic. Under the c i r c u m s t a n c e s , NABARD m a n a g e m e n t Committee in one of its decisions advised TSD to examine if incentivisation is required for encouraging farmers to go in for organic farming and to identify areas of incentivisation if required. In an attempt to examine the issue of incentivising farmers to go for organic f a r m i n g . TSD, HO has conducted one field study in Yavatmal, Amaravati and Pune s o m e selected districts of Maharashtra and interacted with some leading firms that has gone for organic. Major Observations 1. With organic farming the yield gets stabilised after the end of the conversion period (2 to 3 years). The differences in yields and economics of organic and conventional systems are only marginal and organic systems offer comparable productivity. Inadequacy of i n p u t material availability is n o t i c e a b l e . C o m p o s t / v e r m i c o m p o s t is produced in the villages mostly for o w n use; no commercial unit is there in any of the villages c o v e r e d . S o m e f a r m e r s w h o d o not have sufficient or any cattle, prefer to stay inorganic. Physical quality of grain/product improves under organic s y s t e m of p r o d u c t i o n . Rice grains 8k remain unbroken after pounding and weight more with less volume indicating higher density. Rice recovery ratio is higher (100 : 70) against the inorganic (100 : 60). 4. Organic farming improves soil qualities f r o m physical chemical and biological point of view. 5. The National Project on Organic Farming

initiated by G o v e r n m e n t of India has limited components. Different subsidy schemes related to organic farming have been floated/ i m p l e m e n t e d by G o v e r n m e n t of India and Government of Maharashtra. 6. Major cost components for organic production are i n p u t s like c o m p o s t / v e r m i compost, certification, transportation, storage, cleaning, sorting, packing and marketing, which makes organic cultivation higher than conventional farming. 7. ; India has 20 crores potential customers for o r g a n i c p r o d u c t s t o be t a p p e d . T h e r e is increasing d e m a n d for organic food items in . Mumbai market with an annual demand growth - of about 4 0 % . The growth in other Indian cities is also very fast. Total a n n u a l m a r k e t f o r organic p r o d u c t is around $ 13 billion. In developed countries, the organic f o o d trade represents about 2 % of the total f o o d trade. Indian e x p o r t markets in European countries including U.K., USA and Japan are expanding. 9. The retail prices of organic items are significantly higher than the regular ones.

2.

10.

Agencies like Eco-farm, Maharashtra Organic Farmers' Federation, etc. facilitate group training to farmers, provide guidance, purchase organic farm products and facilitate marketing.

11.

Major constraints faced by the organic farmers are: i. Shortage of input materials including cow dung.

3.

Deputy General Managers, TSD, HO

iflHiPel/iSSS
ii. Certification - cost and complicated procedure.

3T^ 10, 2007

Prat MR'MMH %g

There is a need to develop separate scale of finance for crops grown under organic system and enhanced refinance support. Farmers may be incentivised for rearing more cattle to have more cowdung/compost and also for establishing bigger vermi compost units. Capital subsidy scheme on organic farming may be extended for production of biopesticides and compost from other bio-resources. Production subsidy may be provided for popularising organic inputs at affordable retail prices as done for chemical fertilisers. Creation of infrastructure for testing and certifying at local level. 7. Cost of certification being costly, may be incentivised. Service providers such as NGOs may be incentivised for providing training, technologies, exploring marketing, etc.

iii. Capacity building. iv. Market linkage. V. State support. 12. For realising premium price, two important requirements are : I ' i. Facilities for testing and certifying the produce as organic at local level.

ii. Adequate and appropriate market infrastructure exclusively for organic products, so as to prevent mixing up with conventional products and to enable fetching premium prices providing safeguard to the farmers'interest.

Recommendations 1. Banks may give priority to projects related to organic farming.

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Hi-tech market infrastructure - The TN initiative
The Tamil Nadu Government is reported to be planning to create terminal markets for agriculture produce with necessary infrastructure in three places, to eliminate post-harvest loss and ensure remunerative prices to farmers. These markets will have facilities such as collection centres, pre-cooling equipment, sorting and treatment facilities, and electronic auction. They will be established in Chennai, Coimbatore and Madurai, declared the State Finance Minister, Mr. K. Anbazhagan recently. Presenting the 2006-07 budget, he said these markets will provide good export opportunities besides enhancing marketing prospects for agricultural produce. He said cold storage facilities will be created for onion in Palladam in Coimbatore district, for mangoes in Krishnagiri district, and for grapes at Odaipatti in Theni district to enable export of these produce. The Government will also take action to produce ethanol in all sugar mills for blending it with petrol. Farmers will be encouraged to cultivate sweet sorghum and sugar beet as these can also be used for producing ethanol.

37

ISSUE 10, 2007 For Private circulation only

TECHNICAL/DiGlST

BROILER POULTRY IN BODOLAND

Thanks to the initiative of our Assam Regional Office , we have formed a nucleus of contract broiler farming in Assam. It all started at a workshop held in Guwahathi. With the great demand for poultry meat, the potential for the activity in Northeast is very high. VHPL accepted our request to establish a centre for broiler farming. RO acted as a catalyst and coordinated the entire plan by liaising with State Government, local people etc. In spite of many teething troubles, persistence paid off in the end. The present position is:. With the cooperation of Venkateswara Hatcheries in Kolkotta, persons in 4 districts of Assam were trained on broiler farming. 65 units under contract farming has been established with the help of local authorities. (6 units by Bodo women. (Kokrajar and Chirang districts) Average size of farm is 2000 birds Bodoland Livestock Farming and Marketing Society(BLFM) is providing help for cheap shed construction (Bodo Tribal Council has announced assistance to farmers for poultry farming). Another 100 new groups are being formed and they will take up broiler farming after training. Venkateswara Hatcheries Pvt. Ltd ( VHPL) supply chicks, feed, equipment like feeder, waterer, and also help in marketing. So far no bank finance is involved. There were threats from local poultry Industry but our RO has enlisted the support of locals. Our staff in Guwahathi RO really deserve to be congratulated for the unique efforts taken.

NATIONAL FISHERIES DEVELOPMENT BOARD

With the objective of achieving full potentials of Indian fisheries. Government of India has constituted "National Fisheries Development Board (NFDB)" under the Ministry of Agriculture with a budget of Rs. 2,100 Crores during 2006-2012. The board consists of Governing Body and Executive Committee, whereChairman of NABARD is a member of the Governing Body and Managing Director of NABARD is the member of Executive Committee. The Headquarter of the NFDB is at Hyderabad. The objectives of NFDB are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. To bring major activities relating to fisheries and aquaculture for focused attention and professional management. To coordinate activities pertaining to fisheries undertaken by different Ministries/ Departments in the central government and also coordinate with the State/Union Territory Governments. To improve production, processing, storage, transport and marketing of the products of capture and culture fisheries. To achieve sustainable management and conservation of natural aquatic resources including the fish stocks To apply modern tool of research and development including biotechnology for optimizing production and productivity from fisheries To provide modern infrastructure mechanisms for fisheries and ensure their effective management and optimum utilization. To generate substantial employment To train and empower women in the fisheries sector To enhance contribute offish towards food and nutritional security.

MAHARASHTRA EMERGES AS A TOP PRODUCER & EXPORTER OF POMEGRANATE

R.N. Hegde
Pomegranate is a native of the region from Iran to Himalayas. While the crop has been cultivated since time immemorial, commercial cultivation of pomegranate was taken up in India since mid 70s. Over a period of 30 years, India has emerged as a top producer of pomegranate and has been able to enter the export market. The other pomegranate producing countries in the world are Afghanistan, Iran, Spain and some Middle East countries. At present, an area of 1,12,500 ha is under pomegranate cultivation. Maharashtra state accounts for 72 per cent of the total production of pomegranate in the country, with 88,500 hectares under cultivation and an output of around 7,92,500 metric tones. Earlier, "Ganesh" variety was popular among the farmers, but, of late, "Bhagwa" variety has taken over Ganesh variety. Bhagwa variety is medium in size, with 35% juice, hard seeds, good keeping quality and without black seeds (arils), which is normallyfound in othervarieties of pomegranates. Pomegranate fruits can remain for one month at room temperature and at 15Ceven up to three months. "In 2004, there was a demand from Spain for two containers of pomegranate and in 2005, it grew to eight containers from Holland and two from United Kingdom" says Shri Prabhakar Chandne, President, Maharashtra Pomegranate Producers & Research Society, Pune.India exported 10,000 Mt of pomegranate of Bhagwa variety in 2004. Bhagwa variety which is a selection from farmers fields is now recommended by MPKV Rahuri Agricultural University. Maharashtra. Rahuri Agricultural University has released two other varieties viz. Mrudula and Arakta which are also becoming popular. This crop is best suited for drought prone areas as it requires light soil and a rainfall of 25-50cms only. A National Research Centre (NRC) for pomegranate is to be established in Solapur over an area of 60 hectares soon. The Centre to be set up will be under the control of the Central Institute for Arid Horticulture (CIAH), Bikaner. The Centre will be equipped with laboratories and other infrastructure for research to improve the quality of pomegranates. Efforts will be made to produce processed products like squash and anardana from pomegranates. Research will be conducted in coordination with the CIAH and other agricultural universities. General Manager, Maharashtra Regional Office Interventions needed in the cultivation and marketing of pomegranate The pomegranate growing areas often experience drought conditions. Hence provision for irrigation is required. This necessities the need for water harvesting structures. Water harvesting structures lined with plastic sheets have become popular among the farmers. This increases the credit needs of pomegranate growers. Nowadays, farmers exporting pomegranate get around 4 Euro for a 3'2 kg box. It is understood that the same amount is sold at 8 Euro in Europe. In other words, the trader gets as much as the farmer gets. Marketing interventions are required to increase the share of the farmers in the consumer price by strengthening the marketing system. It is understood that the world demand for of pomegranates is around 500 containers. High temperatures have an adverse effect on the colour of the fruits. So to obtain export quality fruits, farmers require shade nets in their orchards, which is capital intensive. Interventions are also required for technology transfer on production of export quality fruits to farmers. Solapur district in Maharashtra, has the maximum area under pomegranate There is a cooperative society of pomegranate farmers with 5000 members in Solapur. Efforts are on to brand their produce under "MAHANAR" for the export market. Another interesting fact is that India has very few competitors in the world market for pomegranate. It will be no wonder, if India's pomegranates reach the supermarkets of America & Japan soon.

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Ephedra gerardiana
The plant is a woody shrub and it can grow well in sandy and loamy soils.The plant contains active alkaloid known as Tphedrine' and they are widely used in preparations for the treatment of asthma. Ephedrine acts promptly to reduce swellings of the mucous membranes and has antispasmodic properties, thus making it valuable in the treatment of asthma. The plant also has antiviral effects, particularly against influenza. Ephedrine is seen as a performance-boosting herb and, as such, is a forbidden substance in many sporting events such as athletics.