COMMUNITY MOTIVATION FOR AGRI AND HORTICULTURE

OUTPUT MARKETING
(ESPECIALLY FOR DATES AND VEGETABLES OF KUTCH)

Submitted by

ANSHUL GOYAL

ORGANISATION TRAINEESHIP SEGMENT

PRM 2004-06

Submitted to
Prof. K. V. Raju

Host Organisation
Shri Vivekananda Research and Training Institute (VRTI), Mandvi

July-2005

INSTITUTE OF RURAL MANAGEMENT, ANAND

 ACKNOWLEDGEMENTS

I wish to thank my host organisation, VRTI, Mandvi for giving me an opportunity to work
with them and for providing me all the needed support. I would like to mention the efforts of
my reporting officer, Mr. Amit Ghosh, who was always there to lend a helping hand, was
open to all suggestions, and provided valuable guidance and useful insights which helped me
in the preparation of the report.

I take this opportunity to convey my sincere thanks to all KADEC staff of VRTI. My special
thanks to Mr. Arvind Bhai who was always with me during my field visits. I would also like
to thank Mr. Achyut Patel for his valuable guidance about dates and vegetables.

I thank all the employees of VRTI for helping me during my study. Their support made my
stay a memorable and educative one.

I am grateful to the Institute of Rural Management, Anand (IRMA) and our OTS Co-
ordinator, Prof. Jayant Negi, for providing me the excellent opportunity to conduct this study.
I would also like to express my sincere gratitude to my faculty guide, Prof. K. V. Raju for his
guidance and valuable suggestions in preparing the report.

Anshul Goyal (25003)

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 Executive Summary

Project Title: Community motivation and awareness towards agri and horticulture
output marketing (Especially for dates and vegetables of Kutch)
Organisation: Shri Vivekananda Research and Training Institute, Mandvi, Kutch
Reporting Officer: Mr. Amit Ghosh, Officer In charge, VRTI, Mandvi
Faculty Guide: Prof. K. V. Raju
Students’ Name: Anshul Goyal

Objectives: The first objective of the study was to understand the current marketing system
for dates and vegetables of Kutch and then analyze this system from farmer’s point of view.
Later I checked the feasibility of marketing system proposed by Kutch Agriculture
Development Consortium (KADEC).
Scope of the study: The study was confined to the fresh dates and vegetables, grown in the
Kutch area only. My major study area were villages of Anjar, Mundra, Mandvi and Bhuj
tallukas of Kutch district.

Methodology: I completed my study in three phases. In the first phase I visited 12 villages
and meet with many farmers who are growing dates and vegetables. In the informal
discussions with farmers I tried to get primary information about these crops and nature of
their market. I visited local fruit and vegetables markets also and saw all the marketing
process there. In the second phase of my study I prepared a questionnaire for doing sample
survey of farmers. In this survey I tried to know the experience of farmers in different
markets and their relationship with traders / commission agents. Then I prepared a checklist
for trader / commission agents and visited some local markets for getting information about
procurement and marketing of dates. Finally in the third phase of the study I analyzed all the
collected data. Then I checked the feasibility of the KADEC proposed marketing plan with
the help of available secondary data.

Findings: Farmers are not aware about the proper date cultivation practices and they do not
have access to good quality planting material and other inputs. Marketing for fruits and
vegetables is not well organised in this area. Anjar, Saurastra and Mumbai are the major date
markets and all these markets are in the hands of commission agents and other middlemen
who are keeping the lion share of end price paid by the consumer. Date cultivation is not the
most important activity for most of the farmers. This is the reason that they are more worried
about other crops like mango; cotton etc. and they do not put much effort on date cultivation.
KADEC is planning to implement a project for first improving the quality of dates and then
market it properly. There is good demand for high quality dates in international market and
Kutch has the potential to satisfy that demand. KADEC has many advantages in terms of
harvesting time, quality, location and cost, for date business and this project can be feasible if
quality is maintained and a minimum level of procurement is achieved.

Recommendations: A lot of things still need to be done by KADEC. First they have to
establish a proper organisational set up and special efforts should be given towards guidance
to farmers. For creating stake of farmers in the system KADEC should issue some shares for
farmers also and they should develop proper compliance mechanism. There should be some
alternative source of income for diversification of risk of the farmers. Local labour should be
trained by KADEC for performing different activities of date cultivation. KADEC have to
develop its infrastructure also for effective implementation of the project.

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 Table of Contents

Topic Pages

1. The Study: Scope and Objectives 1-6

1.1 Introduction
1.2 Kutch – General Introduction
1.3 Dates in Kutch
1.4 Objectives of the study
1.5 Scope of the study
1.6 Methodology
1.7 Limitations

2. Current marketing system for dates and vegetables 7-21

2.1 Marketing Channels

2.2 Fruit and vegetable market of Anjar
2.3 Fruits and vegetable market of Mumbai
2.4 Findings of the sample survey
2.5 Analysis of the sample survey
2.6 Change in the farmers’ perspective: A case study

3. Kutch agriculture development consortium (KADEC) dates project 22-25

3.1 Consortium approach

3.2 Change in propagation technology
3.3 Intercropping
3.4 Drip irrigation
3.5 Subsidies and bank loan
3.6 Roles and responsibilities of member organisations
3.7 Return to the farmer
3.8 Share of different players in the end price of dates in the new system

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4. KADEC proposed marketing system 26-38
4.1 Procurement
4.2 Marketing
4.3 Feasibility Study
4.4 SWOT Analysis

5. Suggestions and conclusion 39-43

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 LIST OF TABLES

Title Page No.

Table 1: Schedule of the study 4

Table 2: Sample survey break up 6
Table 3: Sensitivity Analysis 24
Table 4: India and World Date Imports 30
Table 5: Selected Gulf State Imports 31
Table 6: Leading European Date Importers 31
Table 7: Forecasted demand of dates
Table 8: Expected supply of dates 32

LIST OF FIGURES

Title Page No.

Figure 1: Current marketing channel for dates and vegetables 8

Figure 2: Share of different players in Anjar market 12
Figure 3: Average price offered in different markets 15
Figure 4: Share of different intermediaries 16
Figure 5: Share of different players in new system 25
Figure 6: Proposed procurement system 28
Figure 7: Share holding pattern proposed by promoters 38
Figure 8: New share holding 40

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Annexure

1. Assumptions 45

1. (A) Establishment cost of setting of one date orchard with intercropping 46

1. (B) Establishment cost of setting of one date orchard without intercropping

48

2. (A) Year wise cropping pattern for vegetables

50

2. (B) Income per hectare from Tomato plantation 52

2. (C) Income per hectare from Brinjal plantation 53

2. (D) Income per hectare from Chilly plantation 54

2. (E) Income per hectare from Beans plantation

55

3. Supply Estimation 56

4. (A) cash flow for village level collection centre 57

4. (B) Profit and Loss A/c for collection centre

58

5. Cold Storage calculation 59

6. (A) Questionnaire for farmers

61

6. (B) Checklist for commission agent / trader

64

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