australasian agribusiness perspectives 2020, volume 23

The Indian Honey Value Chain Kapoor

Australasian Agribusiness Perspectives, 2020, Volume 23, Paper 5 Page 71

Australasian Agribusiness Perspectives 2020, Volume 23, Paper 5

ISSN: 2209-6612 --------------------------------------------------------------------------------------------------------------------------------------

Value Chain Analysis of Honey in India

Akshita Kapoor Postgraduate student, Centre for Global Food and Resources, University of Adelaide.

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Abstract This paper uses the principles of value chain analysis as a tool to determine the restrictions to the growth, development and competitiveness of the honey industry of India and to propose mitigation strategies. Information evaluated includes honey production and yield patterns, advertising and marketing, preparing, processing, exchanging and trading along with its value chain. The performance of India's honey value chain was analysed in terms of governance and administration, production and processing, integrated marketing communication, and product value in order to improve the prospects for future expansion and advancement in the apiculture activity. Key words: Honey, India, beekeeping, value chain

Introduction India is well known for its extensive arable land resources. It possesses 46 out of 60 possible types of soil, which makes the land suitable for a wide variety of horticulture industries (fruits, vegetables, nuts, flowers, turf and nursery products). The horticulture sector of India operates in a highly competitive domestic and international market but is very labour intensive and mostly seasonal (Saraswat, 2013). According to the National Horticulture Board (2013), this sector accounts for about 37 per cent of the total exports of agricultural commodities, contributing some 30 per cent to the country’s GDP. The sector is currently expanding, showing the potential to raise farm income, provide livelihood security and earn foreign exchange (National Horticulture Board, 2013). As horticulture has emerged as an integral part of agriculture, government has taken an initiative to encourage the production of new types of products including mushrooms, bamboo, and beekeeping (apiculture code for honey production) to enhance crop productivity and to further expand the scope of the horticulture segment. This has resulted in a growing preference for horticulture crops among Indian farmers, hence creating opportunities for sustaining a large number of agro-industries with substantial employment opportunities (National Horticulture Board, 2013; Food and Agriculture Organization of the United Nations, 2015). However, the dynamics of production problems, volatile marketing conditions and lack of progress in the development of technologies for value addition and processing to minimise post-harvest losses are causing a barrier to effective and efficient horticulture production (Food and Agriculture Organization of the United Nations, 2015).



In this paper, the ‘honey industry’ is used as a case study. A value chain analysis is undertaken to identify the constraints to further enhancement of performance in the domestic market and to suggest a strategy whereby interventions at each stage can improve the overall value generation of the chain and, subsequently, transform the traditional farming and marketing methods currently used into a modern value chain.

Horticulture Sector Analysis Globally, horticulture has been expanding rapidly. The current global production levels of fruits and vegetables are 675.8 and 879.2 million tonnes, respectively (Statista Research Department, 2017). India is one of the top three fruit and vegetable producing countries, accounting for 10 per cent of the total, specifically in the production of potatoes, onions, tomatoes, cashews, oranges, mangos, grapes, guavas, cauliflowers, brinjals, peas and bananas (Agricultural and Processed Food Products Export Development Authority, India, 2018). During the 2018-19 crop year, the production of horticulture crops in India was estimated at 314.5 million tonnes which is approximately 0.95 per cent higher than the previous year and 8 per cent higher than the past five years' average production. The production of vegetables and fruits was about 187.5 and 97.35 million tonnes, respectively. Moreover, the area under cultivation rose to 25.87 million hectares in 2018 from 25.43 million hectares in 2017. The sector provides direct employment for 7.7 million people and indirect employment for a further 30.0 million in India (Business Standard, 2019; Marar, 2019). Among all the highly valued horticulture industries, the honey industry is luring researchers, innovators, businesses, consumers, traders to it because of its many nutrition and medicinal traits and benefits. One particular reason is the large number of the population with poor health status. According to the International Diabetes Federation, the prevalence of diabetes in Indian adults was 8.8 per cent (72,946,400 cases) in 2017 (Policy Research Foundation, 2018). Furthermore, the predominance of heart failure cases in India (owing to coronary illness, diabetes, hypertension, rheumatic coronary illness, overweight and obesity) ranges between 1.3 to 4.6 million, with a minimum of 490,000 new cases of heart failure being diagnosed each year (Central Bureau of Health Intelligence, 2019). The surge in the rate of acute and chronic diseases is causing many people to choose honey over sugar. Thus, the market for honey is currently booming, providing opportunities for innovation and advanced technologies for better production and processing from producers to consumers. However, the rapid increase in demand may act as one of the prominent reasons behind current impediments in the market, so it is timely to analyse the whole value chain of honey to address the gaps and improve its performance.

Market Analysis of Honey in India India has been known as ‘the land of honey’ for many centuries. Traditional beekeeping activities have been mainly forest-based. Thus, the raw material for production of honey is available mostly from nature (The Honey Portal Project, 2010). Also, bees support and facilitate the gene flow system which helps the environment to improve diversity and productivity (National Portal of India, 2011). Furthermore, beekeeping comprises a source of sustainable income generation to the rural and tribal farmers (Farming Guide, 2019).



The consumption of honey has been mainly in its natural state, such as crystallized or liquid. A small amount has been utilised in the kitchen as an element of pickles, sticks and jelly. It also has been taken as a medication to treat diverse ailments through a wide range of applications (Farming Guide, 2019). Nowadays, with the increasing incidence of acute and chronic health disease in recent years, there is also an increasing trend to use honey in food. Having said that, the strategy of the National Bee Board of India is to increase the number of managed and feral honey bee colonies to increase honey production which can then be sold as a high value medicinal product having a shelf life of more than a year (The Comprehensive Agriculture and Rural Development-Facility (CARD-F, 2018). Production of honey The majority of global production of honey takes place in the developing countries, while the developed countries are the largest consumers. It is estimated that India produces about 70,000 tonnes of honey per annum (University of Agricultural Sciences, 2009). It exported 25,781 tonnes of natural honey in 2017-18, worth USD 50 million. Major export destinations were the United States, Saudi Arabia, United Arab Emirates, Yemen Republic and Morocco (Jain, 2017). Prominent states for honey production Scientists in the UAS horticulture department trace the Indian history of beekeeping back to 1934, when it was first started in Sundarbans, West Bengal, and then in Satyamangalam, Tamil Nadu, in 1936 (University of Agricultural Sciences, 2009). Afterwards, the heavy promotion by Khadi and Village Industries Commission (KVIC) and the National Horticulture Mission in Karnataka made people form honey production societies in Yellapur district in 1941 (Indian Institute of Science, 2012). The overall combined production of honey in these states has already increased to 1,900 million tonnes in 2018 from 700 million tonnes in 2005-06. Furthermore, some of the private beekeepers have started exporting honey to the United Kingdom, Maldives and Kuwait, owing to increasing demand for pure bee-honey. The state governments are helping small entrepreneurs by providing incentives and marketing facilities (University of Agricultural Sciences, 2009). Himachal Pradesh–an emerging honey producing state Himachal Pradesh, an Indian state situated in the Western Himalayas, has recently gained immense popularity in the state government scheme "Mukhyamantri Madhu Vikas Yojna" for the production of premium quality honey (Business Standard, 2018). It is recognised as the largest producer of Himalayan honey. Presently, there are over 85,000 families in Himachal Pradesh engaged in beekeeping and the state produces 1,600 tonnes of honey annually (Jain, 2017). Owing to its varied agro-climate, Himachal has a great variety of bee forage sources that provide the basis for development of the beekeeping industry. Blessed with diverse flora and fauna, Himachal produces high quality honey as compared to the other states (Jain, 2017). Trade in honey Figure 1 shows that exports of natural honey from India from 1991 to 2011 have risen almost every year since around 2000 (Shilpa Shree, 2017). This rising trend has continued. According to the Directorate General of Commercial Intelligence and Statistics (DGCIS) report in 2018-19, the total



quantity of honey exported was 58,488 tonnes. Major markets were the United States, with a value of tentatively 56,000 lacs, followed by the United Arab Emirates accounting for approximately 3000 lacs (as shown in Table 1) (DGCIS annual report, 2018). This suggests that Indian honey offers tremendous export potential, and by framing a suitable strategy, exports can be expanded.

Figure 1. Rising trend in export of honey from India, 1991-2011

Source: Shilpa Shree (2017)

Table 1. Top 10 importing countries of honey from India 2018-19

Source: DGCIS annual report (2018)

Mapping of the Honey Product Value Chain in India In general, beekeeping has been a family enterprise, involving all adult members of households. The majority of beekeepers have had additional jobs and income sources. The small-scale beekeepers have 10 to 40 bee colonies; medium-scale spans between 40 and 160 bee colonies; and large-scale apiarists manage at least 160 bee colonies. About 5 per cent of beekeepers are large-scale, 45 per



cent are medium-scale, and about a half are small-scale (Sharma, 2012). Although honey yields are variable, the overall productivity level of India provides a competitive edge to other countries. There are differences in the honey yield among small-, medium-, and large-scale apiarists, ranging between 7-8 kg/hive, 12-13 kg/hive, and 20-22 kg/hive, respectively (Sharma, 2012). Large-scale producers are more commercially oriented and production practices are more advanced than those of small- and medium-scale producers. However, there is still scope for improvement through mitigating product adulteration, food grading and meeting demands while maintaining product standards (Rural and Agriculture Policy Environment Institute, 2015). In the value chain, actors include apiarists, collectors, exporters and importers, while the main customers include households, the tourism sector, the confectionary sector, retail outlets, export markets, and the Government. The small-, medium- and large-scale apiarists have utilised different sales channels for honey marketing. India's existing value chain for honey is mapped in Figure 2. Its salient features are: 1) The major flow of the product illustrates the existence of a long, traditional supply chain with various intermediaries that not only increase lead times but affect profit equity also (Shrestha, 2016). The majority of the produce is harvested by small- and medium-scale apiarists. However, large-scale producers are involved in most commercially oriented activities, especially controlling the major pathway to exportation of honey. 2) For the small-scale apiarist, the only contact is with intermediary collectors and consumers, whom they depend on as their source of income. The largest proportion of their honey goes to consumers directly from bee yards or an apiary (a location where beehives of honey bees are kept); a smaller proportion is supplied to collectors. These producers are not connected to any other actor in the marketing system. For medium-scale beekeepers, the largest buyers have been collectors, followed, in descending order of importance, by large apiarists, consumers at the bee yard, the tourism sector, the confectionary sector and retail outlets. In the case of large-scale apiarists, the largest market has been retail outlets, followed in order of importance by the tourism sector, export markets, the confectionary sector, government procurement, exporters, and consumers in bee yards (Sinha, 2008). 3) Weak linkages between the production and marketing segments, especially in small- and medium- scale apiarist businesses, result in poor flows across the chain. The large-scale apiarist, being the major source of exports, controls the information, product and cash flow into export markets. These weak linkages may hinder the ability to trace exported product back to the farm (The Institute of Community and Organizational Development, 2009; Sinha, 2008). 4) Growers, middlemen and local retailers have no access to treatment facilities such as disease-free product treatment. Honey sold in domestic markets is minimally treated, the underlying reason behind the adulteration of product. The quality and safety requirements for domestic markets are minimal. Only exporters have access to the Certificate for Export (CFE), the Coloured Grading System (CGS), and the Residue Monitoring Plan (RMP) for honey (Sharma, 2012). 5) Post-harvest losses account for 30 per cent of all honey produced; 20 per cent is lost on the farm due to poor apiculture management and lack of skilled labour and technology, which also further impacts the quality of a product. In addition, as commercial beekeeping has been nomadic, losses also occur while transporting in terms of mishandling, storage and encroachment on product shelf life (Sinha, 2008; Shrestha, 2016).



Figure 2. Value Chain Chart


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6) Importers mainly have supplied properly packed and labelled honey to retail chains, and also have participated in Government procurement tenders (Sinha, 2008). The diseconomies of scale and a limited adherence to required terms and conditions have often placed local suppliers at a competitive disadvantage to importers in Government procurement tenders.

Profit Drivers Table 2 lists the various factors that may drive profits for the stakeholders along the honey value chain. The effect of each factor and its immediate beneficiaries has also been stated.

Figure 4. Profit drivers

Drivers Effect Beneficiaries

Higher yield and superior quality of honey

Intermediary collectors will increase the purchasing quantity of good

Apiarist (especially small-scale apiarist)

Cost efficient production Low cost means better margins Apiarist

Techniques of disease-free products and pest management

Monitoring for mites and parasites in honey production will cause reduction in product loss, and enhanced quality of product

Apiarist

Improved and modified horticulture practices and methods

Better shelf life of product, less loss of product, standardisation of product, higher yields. Hence, increased profit margins

Apiarist

Beekeepers’ advisory services and committees

Setting up of minimum prices and negotiation of purchase price with intermediary collectors’ basis on quality and quantity of product

Apiarist + Intermediary collectors

Latest technologies usage in post-harvest activities

Reduction in losses owing to improper handling, storage, or packaging

Apiarist + Collectors + Exporters

Fewer intermediaries

Shorter chains result in efficiency in cost because of efficient distribution. Therefore, less division of profits and better margins

Apiarist + Collector

Enhanced and standardised quality of product

Reliable, good quality means good price and profit margins

Apiarist + Collector + Exporters

Increase in honey demand

High demand is direct proportional to higher prices and profit margins

Apiarist + Collector + Exporters

Meeting and maintaining International quality standards and gaining of International certifications

Certificates such as CFE, CGS, RMP for honey allows access to expanded and high value markets where willingness-to-pay (WTP) premium prices are good

Exporters



Product Diversification

Usage of honey in other markets such as pharmaceutical companies, food and beverage industry, and utilisation of honey waste in printing and beeswax industry

Apiarist + Collector + Retailers and wholesalers + Exporter

Innovative Packaging, labelling and branding

Enhanced shelf life and quality of product; reduced losses in sea freight and transportation in domestic and international market

Collector + Exporter + Retailers and wholesalers

Performance Assessment of the Chain The various factors that affect the competitiveness of the honey value chain in India are assessed in this section: efficiency, flexibility, responsiveness and food quality (Aramyan, 2007). These performance measures are further divided into components to aid in investigative analysis either using primary or secondary data. Efficiency Production cost: The cost of producing and processing honey in India is Rs. 2.02 to 2.32 per kg (Table 3). This cost of processing was worked out by running the plant with a known amount of honey (64.91 kg and 166.65 kg) and recording of time, labour and electricity consumed. However, the wastage, moisture content and electricity charges vary with time. The processing part helps in the enhancement of a price of raw honey by 50-70 per cent i.e., from Rs 140 to 225 in the domestic and processing markets (University of Agricultural Sciences, 2009). Nowadays, an increase in cost of production in terms of high electricity rates, cost of the bees, maintaining of bees-box and frames, labour and transportation has reduced profit margins (Farming Guide, 2019).

Table 3. Honey processing cost

Source: University of Agricultural Sciences (2009)

Productivity: Honey production is currently a male-dominated activity, although records show that women are increasingly taking it up as an Income Generating Activity (IGA) (Shabong, 2015). A

Calculations

Total electricity charges: total electricity consumed * electricity charge per unit

Total expenditure: total electricity charge + labour cost and miscellaneous charges

Processing cost/kg honey: total expenditure / total quantity of honey processed



significant increase in productivity from 30 kg to over 40 kg per hive, even in a year of moderate productivity, and a substantial increase in the number of producers from around 1,800 to over 9,000, shows the increasing demand and preference for honey (Kumar, 2017). However, in India, production of honey is very low compared to China - the highest producer - which exports 80,000 tonnes annually compared to India’s 7,000 tonnes (Jain, 2017). Price: By comparing the prices of three prominent places in India where honey is produced and collected (Yellapur, Satyamangalam, and Sundarbans) (Figure 3), it can be seen that the highest price is 150 Rs/kg at Satyamangalam. The price variations are due to the provision of different facilities in the different places, and the different quantities available. In terms of quantity, the per head honey collected annually is recorded as 145 kg at Yellapur, 62.5 kg at Satyamangalam, and 56.9 kg at Sundarbans (University of Agricultural Sciences, 2009).

Figure 3. Honey retail price in three Indian states

(Yellapur in Karnataka state); (Satyamangalam in Tamil Nadu state); (Sundarbans in West Bengal state)

Source: University of Agricultural Sciences (2009)

Flexibility Although there is no doubt about the rising demand for honey, customer satisfaction has remained an issue for Indian honey in the domestic as well as international markets for a long time. Initially, India often failed to meet the quality standards and quarantine requirements of markets such as the United States, Australia, Dubai, Europe and Japan (DGCIS annual report, 2018). In June 2010, the EU banned Indian honey due to a lack of traceability regarding origin, adulteration, and contamination by heavy metals and antibiotics. However, the ban was lifted in 2011 after considering the rising imports of honey from India to the United States and improvement in honey product status. The United States imports of Indian honey increased from 20 tonnes to 26,837 tonnes from 2011-2017 (Jain, 2017).



Due to quality testing facilities not being readily available to beekeepers and packers in India, apiarists, collectors and traders were affected because the European Union stopped importing honey from those countries where the use of pesticides was not regulated and where samples are not specifically tested for insecticidal residues. Some honey importing countries also insist on a certificate to the effect that the honey has been procured from disease-free bee colonies (Jain, 2017). However, there is no arrangement for disease surveillance in India. Honey, until recently, was often stored in undesirable and inappropriate containers which lower the quality (DGCIS annual report, 2018). These situations stood as a barrier to effective trade between countries, causing heavy loss due to non-standardised products, and the countries which were meeting the requirements were often out of stock leading to a "lost sales" factor. Lost sales not only cause the loss of huge amounts of foreign exchange for the country but the lack of market presence also leaves the markets open for competitors like Nepal (which now has a firm footing). Nonetheless, due to government initiatives through schemes such as "Pollination Support through Beekeeping", "Apiculture and Honey Production Business", "Modified Grading Systems", and "Bee Colonies Finance", which provided beekeepers with help in the form of finance, transportation and infrastructure, India gained its position back in the European Union. Now, because of high standards in honey processing to prevent quality deterioration, imports from China and Argentina, two other large exporters, are now being penalised due to the poor quality of their honey and many countries are turning towards Indian exporters (DGCIS annual report, 2018). Responsiveness Relationships and linkages: The value chain map shows how the different actors in the chain are connected to one another. A strong relationship exists between the apiarist and intermediary collectors who act as a bridge between honey producers and honey consumers. The collector is helping apiarists in promoting their products in government procurement and export markets. However, the collectors do not have any other linkages for trade. Hence, small-scale apiarists are affected the most because they are completely independent of export and government procurement linkages in comparison to medium- and large-scale businesses. Shortages of production, out of stock products, and fewer facilities mean their profit margins are constrained which both hinders the honey value chain and reduces the living standard and income of beekeepers (Bradbear, 2019). Product and Information flows: Weak transportation linkages hinder the product and information flows. In India, beekeepers need to transport the beehive boxes at night, as bees fly out as temperature rises during the day. However, the vehicles are often held up at borders and toll gates, sometimes overnight, and this results in losses. The beekeepers would be saved much trouble if the government issued them identity documents and instructed the police and toll booths to avoid holding up vehicles bearing these boxes (Ediwn, 2019). Response time: Given the number of intermediaries in the value chain, the weak linkages and the lack of proper product and information flows, it is evident that India’s value chain has a slower response time when compared to its competitors. Food Quality Product quality: The key components that contribute to the acceptance of high-quality Indian honey by the consumer are flavour, volatiles, texture and chemical constituents. To meet the expectations of customers, the government launched a Honey Grading and Marking Rule in 2011 which states the criteria for evaluation of honey based on colour, beehive maintenance, type of bee used, hygienic



practices in production and marketing and tools for prevention of honey comb introduction from one hive to another, etc. (National Portal of India, 2011). However, little training is available to the beekeepers on how to meet these criteria. They are currently demanding a centre at the district level, where they can get expert advice from scientists on improving their value chain practices and dealing with diseases in bees. They would also like more testing centres, where batches of honey produced can be graded before being sent for processing. Honey testing requires expensive equipment, which not many private players are likely to purchase; therefore, it requires government intervention if wider adoption is desired (Jain, 2017). Process quality: The apiarists sell honey to intermediary collectors, but pay a little attention to the product quality and orchard management. This approach has led to fluctuating honey production. According to market actors, the occurrence of major diseases and pests has increased during the last ten years. And very often measures against diseases have not been properly implemented. The production-constraining factors, in order of importance, have included diseases and insects, unfavourable weather conditions (drought, heavy winds, and heavy rains), a lack of skilled labour, the low quality and high price of equipment and tools, the high cost of beehive transportation, and the variable quality of pharmaceuticals (Bradbear, 2019). During the last decade both farmer prices and demand have increased considerably, and increase in demand has been greater than that in supply. Buyers have had requirements for quality, price and volume. Reportedly, the prominent challenge for beekeepers has been meeting volume requirements and ensuring consistency in the characteristics of supplied honey. The majority of beekeepers have not packed and labelled honey - product has been delivered in different capacity glass and plastic jars (Ediwn, 2019).

Identification of Major Constraints At the production level Low production is the major leverage point, especially for ‘Apiscerana’ honey (Kumar, 2017). In almost all the major data and information sources (National Portal of India, 2011; Farming Guide, 2019; The Honey Portal Project, 2010; National Horticulture Board, 2013; University of Agricultural Sciences, 2009), beekeepers were mostly practicing beekeeping in log or wall hives with an average of 1 to 5 hives. Very few beekeepers understood the importance of moving to modern hives. This transition took a long time, involving the International Centre for Integrated Mountain Development (ICIMOD) changing perception as well as the tradition of people which was inbuilt in the system. Also, a few times the bees did not adjust to the new housing system which also was discouraging for farmers (National Portal of India, 2011). However, for the sector it was important to change to the modern bee management system which led to higher yields as well as better quality (Kumar, 2017). The process of upgrading from the traditional system to a modern system is one of the biggest leverage points. Bangladesh is an exception amongst significant honey producers as beekeeping was not a tradition but was introduced with modern hives (Shahinuzanam, 2016). Motivating beekeepers to be commercial beekeepers by increasing their production scale is essential to increase overall production. The adoption by beekeepers of the concept of commercially producing a large quantity and selling it has been identified as a leverage point throughout all studies on honey in India. There is a need to have functional groups/cooperatives/associations working together to create and cater to the market demand, to provide assurance to the buyers who are in the market that sustainable supply is available. It is also important to identify and control diseases that affect the colonies, and to conserve, manage and promote bee flora which will help them to increased quantities and different varieties of honey.



At the processing level Relatedly, greater awareness of how, why and when to process honey needs to be created. People are selling any surplus honey in any used bottles, plastic containers or tins. In this process there is much leakage, and proper measurement of the vessels used is not done which hampers the profit for the beekeepers. Also, since very little processing is done, fermenting of honey can also occur which hampers the quality and image of honey (International Centre for Integrated Mountain Development, 2015). Since the small-scale farmers have only small quantities at the household level, and no or only minimal help to increase their business level, they do not consider processing and packaging of honey. However, in some areas, a few lead farmers in some villages, e.g. in Chitral in Pakistan and ‘Alital’ in Nepal, people have adopted commercial techniques using modern hives and selling it to/through their cooperatives/groups/associations/enterprises. In spite of the fact that the demand is high, the market demands a certain quality; for example, it should be free of wax and brood and should have lower moisture content leading to longer shelf-life (Federation of Nepalese Chambers of Commerce and Industry (FNCCI), 2007). Besides, honey should be packed in a bottle which is easy to carry and does not leak and become sticky, etc. Therefore, while going commercial, the move to meet market requirements and understand marketing dynamics like pricing, labelling, and packaging can also be seen as a leverage point: the move from a commodity, to product, orientation. At the marketing level The objective is to identify and cater to market segments. Small-scale farmers have little access to their customers, which decreases the price level costumers are willing to pay for their honey. They have little idea about market demand and how much more they can produce which the market can absorb. Due to these factors, small-scale beekeepers find it challenging to take their business to a commercial scale. There is a need to form groups or cooperatives to train beekeepers in terms of quality, to link them with the assured market as well as give awareness of the basis of their comparative advantage (forest based, good quality). They also need to be effectively trained to realise why they need to be competitive with their product and how they can promote their comparative advantage better so that they are more visible in the market (Muiruri, 2015). It is also important to understand the actual demand for their product in the local market as well as in the cities.

Suggested Interventions The following are potentially valuable interventions by identified actors in the value chain to address the constraints currently extant. Their costs and plausible returns would need to be evaluated a priori, of course. Capacity building and provision of modern technology beehives: Farmers should be trained in modern bee management techniques and hive carpentry. Furthermore, they should be provided with high–tech equipment to enhance the quality of honey production. Training and exposure visits must be conducted on hygienic methods of honey extraction, bottling and packaging, branding and organic certification. Focus should also be given to include women and the poor in value chain development by encouraging their participation in joint liability groups and building their capacities



through training, exposure visits, and provision of material and equipment. To improve the beekeeper’s business, farmers should also be linked to the National Bee Board for further training. An example of one such initiative is "Bee the Change". Mr. Srikant Gajbhiye started the social entrepreneurship venture in Maharashtra state of India in 2013. Today, his organisation has trained over 700 farmers and forest populations. As part of its operations, the organisation meets farmers in rural areas and provides them with bee boxes and free training. Over the years, the organisation has encouraged beekeepers to evolve their traditional beekeeping business in terms of technology. One example is the use of the 'super' chamber for extracting honey. Through this, beekeepers can extract around 70-80 kg of honey from a single hive in comparison to 10-15 kg from traditional hives. Once the new entrants start beekeeping, the organisation buys back the honey at a pre-determined price and generates income by selling this honey to retailers under their own brand (Alam, 2016). Mobilisation of beekeepers into self-help groups, joint liability groups, and cooperatives: Farmers should organise themselves into self-help groups and joint liability groups to strengthen farmer organisations and their activities. Once the cooperative is in place, business plans for honey joint liability groups and self-help groups could get prepared and formalised through participatory processes. Facilitating access to information: Government should take the initiative to connect and link the farmers to information service providers via SMS or TV platforms where they can get information on markets, prices, quality, government subsidy programmes, and other services related to beekeeping, as well as agriculture and weather. Initial steps should be taken to establish beekeeping excellence centres for demonstration and extension in some pilot villages. These centres would be run by progressive beekeepers. Facilitating market access: Market surveys should be undertaken to assess market demand and requirements in terms of quality and quantity. Potential market outlets should be contacted to ensure steady marketing of honey, as there could be a projected increase in the quantity of honey produced as a result of the project intervention. And apiarists should make sure to form business agreements with the identified traders only. An example of this type of initiative is Nectwork Foods. This Delhi-based company completed an eight-month research project in 2013 to understand why honey does not feature in Indians' day-to-day lives (besides medicinal purposes). The responses the company received were quite interesting: "many said they don't find individual-portion packaging of honey anywhere, and it is tedious to carry honey around as it gets messy when it leaks. Some find honey too sweet and parents shared that kids think it looks like medicine." (Daily News and Analysis, 2015). Realising these problems, the company launched a product called "Honey Twigs"- a specially-designed twig-like food grade laminate containing eight grams of honey, which can be directly squirted into the mouth or squeezed without getting the fingers sticky and also allow you to control the amount you have at one go (Daily News and Analysis, 2015). Facilitating access to finance: Farmers and self-help groups require financial resources to effectively carry out honey value chain activities. The (sponsored) finance project could link farmers and self-help groups to banks and other sources of financial resources which could provide equipment and finance assistance to farmers at a subsidized rate. To cope up with the obstacle of rapidly rising production costs, the government should investigate a minimum support price (MSP) for honey, and should help establish a proper procurement process.



An example of this type of initiative has been provided by government. Observing the rising interest of entrepreneurs in bee farming, the Indian government has started working at various levels and in different capacities to revive the practice. The Horticulture Department of India processes loans to beekeepers for bee pollination. Under various schemes, a beekeeper can procure a bank loan up to USD 800,000. Moreover, beekeeping entrepreneurs could also obtain a 30-40 per cent subsidy on their loans issued by the Khadi and Village Industries Commission (Alam, 2016). Brand development and promotion of new products: With improved technology and value addition, honey processing will be done as per market requirements. A universal brand could also be developed for effective product promotion and marketing.

Conclusion This study has investigated the value chain of honey in India which shows that honey production and marketing has emerged as one of the most important agro-based industries. Considering its benefits, demand and usage, it shows the potential to contribute as a major foreign exchange earner if international standards are met. Indian honey has a good, but comparatively small, export market. Nonetheless, with the use of modern collection, storage, beekeeping equipment, honey processing plants and bottling technologies, both domestic and international markets can be tapped. The bee industry also helps increase other crop yields. Being an external agent, the honeybee helps about 85 per cent of crop plants in cross-pollinating. So, by recognising beekeeping as an agro-industry, government should help beekeepers doing apiculture at all levels by creating a campaign and an Indian logo as a joint effort of exporters, the Agricultural and Processed Food Products Export Development Authority and the Ministry of Commerce and Industry, which can be used for better marketing for higher sales realisation. Timely implementation of the above steps could pave the way for a quantum jump in the production, consumption and trading of honey from the country in the coming years.

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