final report

VALUE CHAIN ANALYSIS OF OFF SEASON

VEGETABLES IN UTTRAKHAND

SUBMITTED TO

GTZ, RED PROGRAM, UTTRAKHAND

SUBMITTED BY

MANOJ SINGH, CONSULTANT

CONTENTS

Page no.

CHAPTER 1: INTRODUCTION 5

I. Background 5

II. Objectives 5

III. Methodology 6

3.1. Desk Research 6

3.2. In-depth interview 6

3.3. Group discussion 6

CHAPTER 2: OFF-SEASON VEGETABLE PRODUCTION IN UTTRAKHAND 7

I. General Information 7

1.1 Introduction of Production Area 7

1.2 Off Season Vegetables Production 7

II. Market Information 8

2.1. Wholesale Market 13

CHAPTER 3: VALUE CHAIN ANALYSIS OF DIFFERENT OFF SEASON

VEGETABLES UNDER DIFFERENT MODELS IN SELECTED DISTRICTS OF

UTTRAKHAND

17

I) Value Chain Analysis for different Off-Season Vegetables of Dhari and

Ukhalkanda Blocks of district Nainital of Uttrakhand (CHEA, Nainital

Model)

17

1.1. General Information 17

1.2 Off-season vegetables value chain mapping 19

1.3. Marketing Channel Followed 21

1.4. Description of value chain’s members 21

1.5. Actors and their Functions in the value chain of OSV 24

1.6. Various marketing cost components in the value chain of OSV 25

1.7. Structure marketing margin between farmers and wholesale level 26

1.8. Price Mapping for Off-season vegetables under CHEA model 28

1.9. SWOT Analysis – CHEA Model 29

II. Value Chain Analysis of different Off-Season Vegetables of Kapkot Block

of district Bageshwar of Uttrakhand (SHAMA Farmers’ Federation Model)

30


2.2. Off-season vegetables value chain mapping 32






2.8. Price Mapping for Off-season vegetables under SHAMA Fed. model 41

2.9. SWOT Analysis – SHAMA Fed. Model 42

III. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal,

Ramgarh and Dhari Blocks of district Nainital of Uttrakhand (Vinodhara

Agritech Model)

43








3.8. Price Mapping for Off-season vegetables under Vinodhara Agritech

Model

54

3.9. SWOT Analysis – Vinodhara Agritech Model 55

IV. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal,

Ramgarh and Dhari Blocks of district Nainital of Uttrakhand (CHIRAG

Model)

56








4.8. Price Mapping for Off-season vegetables under CHIRAG Model 68

4.9. SWOT Analysis – CHIRAG Model

70

V. Value Chain Analysis for different Off-Season Vegetables of Lamagara

and Dhauladave Blocks of district Almora of Uttrakhand (ULIP, Almora

Model)

71





CHAPTER 4: CONSTRAINTS/ OPPORTUNITIES AND CONCLUSION 76

I. Constraints 76

II. Opportunities 76

III. Conclusion 76

IV. Appendices 77

CHAPTER 1: INTRODUCTION

I. Background

The ”REGIONAL ECONOMIC DEVELOPMENT PROGRAM in Uttarakhand” is the most recent

initiative of the Federal Republic of Germany in promoting Indo-German economic cooperation by

assisting a relatively backward region in India to bridge the existing economic divide between “the hills

and the plains” by complementing and supporting ongoing development efforts. The RED program

envisages a steady flow of technical assistance from the German side which is intended to

complement the Government of India’s reform policies geared towards a more inclusive growth and

reducing poverty by generating income and employment, particularly for the rural and marginal groups

in Uttarakhand.

Following a market –driven approach, the program focuses on the development of selected value-

chains and clusters with potential for inclusive growth, the creation of improved framework conditions

for pro-poor market development and the improvement of market access for small and medium –sized

enterprises and producer organizations. The program also emphasizes on regional marketing and the

promotion of Uttarakhand as a business location.

The program is anchored in the Department of Rural Development of the GOU in cooperation with

German Technical Cooperation (GTZ).

In recent times the Indian economy has witnessed rapid economic growth and transformation.

However the impact of this phase of economic resurgence continues to be limited to certain “sun rise

“sectors. There still is a large cross section of the population that continues to remain untouched by

the general spell of economic transformation. As a result of this overbearing phenomenon, today, the

challenge lies in improving market access for large parts of the population, particularly rural and / or

deprived groups, thus enabling them to grasp opportunities embedded in the ongoing economic

development.

Such challenges are especially evident in the new state of Uttarakhand, which is characterized by a

dual economic structure: agricultural subsistence economy in the hilly regions and dynamic industrial

development in the plains that remain largely disconnected, thereby reinforcing the already existing

economic and social disparities. To break this deadlock a concerted drive is required to improve upon

the framework conditions and identify promotional instruments that foster the development of local

enterprise and their integration in sustainable value chains; all leading to the creation of income and

employment opportunities.

The present study was carried out to analyze the economics aspects of the Off Season Vegetables

(OSV) value chain in selected districts of Uttrakhand.

II. Objectives

• To collect relevant information from growers to consumers on current farming and marketing

practices of OSV in the region.

• To define essential players in OSV value chain, then to map flowchart for different marketing

channels and to evaluate roles of particular players in the chain.

• To identify the overall value added generated by the chain and shares of value addition at

different stages

• To gather data and information on the production and marketing costs at each stage of

the chain, and the cost structure along the chain stages

• To identify the cost drivers

• To assess the performance of operators (utilization of productive capacity, productivity,

profitability)

III. Methodology

By approval of GTZ and through identification of different stakeholders, value chain study on OSV

has been carried out by adopting following approach:

a. Desk Research: Relevant information from different resources such as annual

reports of the organizations, reports from workshops, conferences had been collected

and presented in accordance with the objectives of the study.

b. In-depth interview: Oral interviews had been carried out for individuals or

representatives of particular organizations in order to obtain reliable information or

experiences regarding OSV cultivation and marketing. Players in OSV value chain

like input suppliers, aggregators in cultivated area, wholesalers in cities, retailers and

consumers had been identified. Reliably collected information had been subsequently

analyzed in such a manner required by objectives of investigation.

c. Group discussion: Information regarding to cultivating and marketing practices of

water melon had been obtained from growers through field visit, farmers’ group

discussions in order to learn problems and needs of growers. These information had

also been analyzed and presented in this report.

CHAPTER 2: OFF-SEASON VEGETABLE PRODUCTION IN UTTRAKHAND

I. General Information

1.1 Introduction of Production Area

The present study is confined to some selected blocks of Nainital, Almora and Bageshwar districts of

Uttrakhand which are considered as main production areas of OSV in Uttrakhand. Within these

areas, different models of off season vegetable production has been in operation, these models are

being run by different organizations such as NGOs, Govt. Organizations, entrepreneurs etc.

Figure 1. Map of Uttrakhand showing the OSV growing region

1.2 Off Season Vegetables Production

Uttrakhand is the home for cultivation of all kinds of vegetables, which are grown in the different

altitudinal zones and in all the geographical locations. In addition, diversity in the vegetable crops can

be observed everywhere. In terms of production, some areas are producing high quality and quantity

of vegetables but the production is not as much as can be desired keeping favourable geo-

environmental conditions in view. The villages, which are located in the highland, are exporting

vegetables, particularly potato, in the regional market and earning high income. But at the same time,

most of the regions in the mid-slopes are producing vegetable domestically while the agro-ecological

conditions are quite suitable for their high production.

The hill areas are capable of growing off-season vegetables that have a great demand in the plains. A

related advantage for Uttarakhand is its relative proximity to Delhi and other north Indian urban

centres that have an increasing demand for fruits and vegetables.

Table 1. Off-Season Vegetables major growing regions and their time of production in

Uttrakhand

S.No. Off-Season

Vegetable

Months of Production Growing Region

1 Cauliflower July – September Garampani, Hartapa, Hali, Sunkiya

2 Tomato July – August Garampani, Hartapa, Hali, Sunkiya

3 French Bean July – September Bhimtaal, Garampani, Chafi, Hartala, Hali,

Sunkiya

4 Capsicum July - September Suyalbari, Garampani, Hartapa, Hali, Sunkiya

Source: APMC, Haldwani, Nainital

Pea, Cabbage, Cauliflower, French Bean, Tomato and Capsicum are the main off-season vegetables

grown in the region (Table 1). The production time ranges from June-September.

II. Market Information

Uttrakhand and Himachal Pradesh states have comparative advantage of off-season vegetable

production in India. In Uttrakhand, wholesale F&V market at Haldwani, Distt. Nainital is one of the

biggest wholesale market where large part of production of off-season vegetables from Uttrakhand

comes. Seasonal pattern of off-season vegetables arrival at wholesale market in Haldwani (Year

2008-09, Figure 2) revealed that arrivals of off-season vegetables during June – September months

are lowest due to low availability of produce during that time which is considered as main

production time for off-season vegetable production in Uttrakhand. Reasons for low availability at

wholesale market is due to production constraints (limited quality input use, lack of irrigation

facilities), production risks are high due to climatic risks (rainy season), plant diseases risk, poor post

harvest management (absence of sorting, grading etc operations), local consumption, presence of

organized retailers such as Mother Dairy, F&V Unit for long period. Due to low level of arrivals of off-

season vegetables in June – September months, these vegetables got highest prices in the wholesale

market (Figure 3).

Figure 2. Seasonal pattern in Off-Season Vegetables arrivals in wholesale market at Haldwani

(Year 2008 – 09)

Highest Volume Arrival: February – March

Lowest Volume Arrival: September – October

Highest Volume Arrival: August - September

Lowest Volume Arrival: May – June

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

Tomato

Tomato

0

5000

10000

15000

20000

25000

Cabbage/ Cauliflower


Highest Volume Arrival: November

Lowest Volume Arrival: July – August

Highest Volume Arrival: June

Lowest Volume Arrival: February

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Green Pea

Green Pea

0

50

100

150

200

250

300

350

400

450

500

French Bean

French Bean

Figure 3. Seasonal prices of Off-Season Vegetables in wholesale market at Haldwani (Year 2008-

09)

Highest Price: July - August

Lowest Price: November

Highest Price: June - July

0

100

200

300

400

500

600

700

800

900

1000

Tomato

Tomato

0

50

100

150

200

250

300

350

400

450



Lowest Price: January – February

Highest Price: October – November (Arrivals during July – September is very low)

Lowest Price: January – February

Highest Price: April - May

Lowest Price: September

0

200

400

600

800

1000

1200

1400

1600

1800

2000

Green Pea

Green Pea

0

100

200

300

400

500

600

700

800

French Bean

French Bean

2.1. Wholesale Market

Haldwani is the main wholesale market for fruits and vegetables for the farmers of the region.

Therefore, understanding the wholesale market and it’s functionaries is important. Following are the

main stakeholders in the market:

2.1.1. Traders (��

): They procure OSV directly from the farmers/ their agents in villages during

OSV production time. They generally do buying and selling only and charges commission for the

produce they procure (around 5.5 %). The arrival of OSV is generally irregular on per day basis. There

are around 400-500 traders in the wholesale market.

2.1.2. Loaders: Since the volume of arrival of OSV is scattered in the wholesale market, loader

performs the function of collecting the produce from traders and charges his commission (around 4-

5 %). They do procurement only for big volume demanded from other wholesale markets outside

the state such as Lucknow, Meerut, Delhi, Faridabad, Agra, Bareily etc. There are around 50-60

loaders in the market. They do procurement of av. 6-7 truckload of OSV during production time.

2.1.3. Graders: These are labours who do sorting, grading and packing as per requirement of the

buyer, they charge around Rs. 3 per crate and Rs. 5 to Rs. 7 per gunny bag.

Figure 4. Tomatoes being graded in Wholesale Market (Haldwani)

2.1.4 Packers: They only provide packaging material as per requirement of the trader/farmer/buyer.

These packing materials are gunny bags (costing around Rs. 8-10) and wooden boxes (costing around

Rs. 15-20).

Figure 5. Wooden boxes for transportation

2.1.5. Transporters: They provide transportation facility for sending produce to far off markets (av.

Cost is around Rs.6000/- for 5-6 tons produce for a distance of 300 Km and that takes around 8-10

hrs to reach the final destination, Table 2)

Figure 6. Truck load of OSV

Table 2 . Transportation cost of tomatoes to various destinations

S.No. Packing Units Destination Cost (Rs.)

1 512 crates (26 Kg per crate) Delhi 7500

2 216 crates Meerut 3800

2.1.6. Labours: There are general labours in the market yard who performs the function of loading,

unloading, grading and sorting as per requirement.

2.1.7. Weighing Operator: The operator is located at the gate of the market yard and does weighing

of transport carriage with produce and without produce (after the produce is kept in the market),

they charge as per the transport carriage. For example; for tempo (3-5 MT Capacity) charges are

Rs.10/-, for pick up vehicle (1-2 MT Capacity)charges are Rs.15/- and for truck (6-8 MT Capacity)

charges are Rs.30/-

Figure 7. Weighing Machine at the entry of wholesale market (Haldwani)

Figure 8. Digital display of market information at Haldwani wholesale level (not working regularly)

Figure 9. Weighing balance (possibility of human error in weighing is more)

Figure 10. Commission chart of APMC, Haldwani

There are certain unaccountable errors w.r.t. exact volumes, prices, commission charges made at

wholesale level. These errors are might be due to error in weighing at trader level due to use of old

weighing machines which are being operated by hand (Figure 9) and weighing of carriage at the

entrance of market yard (Figure 7), overcharging of commission while APMC, Haldwani has fixed

commission charges rates as per APMC, Uttar Pradesh 1964 Act (Figure 10). Even though market has

digital market information system (Figure 8) but prices are being displayed not on regular basis.

CHAPTER 3: VALUE CHAIN ANALYSIS OF DIFFERENT OFF SEASON VEGETABLES UNDER DIFFERENT

MODELS IN SELECTED DISTRICTS OF UTTRAKHAND

II) Value Chain Analysis for different Off-Season Vegetables of Dhari and Ukhalkanda Blocks of

district Nainital of Uttrakhand (CHEA, Nainital Model)

1.1. General Information

Central Himalayan Environment Association, an NGO working in the Dhari and Ukhalkanda blocks of

district Nainital, Uttrakhand in the area of off-season vegetables particularly w.r.t. improving the

production and marketing processes.

Figure 11. Production of OSV in Dhari Block villages

Blocks Covered: Dhari and Ukhalkanda

Villages: 33

Main Market: Haldwani

Potential future markets: Bhawali, Nainital, Bhimtaal, Almora

Table 3. Basic details related to crop production and post harvest operations

S.No. Particulars Crops

Pea Cabbage Cauliflower French

Bean

Tomato Capsicum

Av. no. of

farmers

involved in

Off-Season

Vegetable

Cultivation

2500 2500 400 300 600 400

Av. Land

devoted to

off-season

(nalis per

crop)

5.78 3.57 2.72 1.02 2.89 1.02

Ha./crop

289.00 178.50 21.76 6.12 34.68 8.16

Production

volume (t)

1806.25 2454.38 190.40 38.25 476.85 20.40

Av. Yield

(t/ha.)

6.25 13.75 8.75 6.25 13.75 2.50

Harvesting

time

March -

April

Sept. –

Nov.

Aug.-Sept. Jun. -

Aug.

June-

Nov.

July-Sept.

Hybrid /

Improved

variety

Arkel Varun Snow

Crown

Anupama Himsona,

Manisha

Bharat, Tanvi

Post harvest

operations

followed

At farm level - - - - - -

At wholesale

level

At retail level Sorting Sorting Sorting Sorting Grading Sorting

Post harvest

losses (%)

At farm level 5 - - - - -

At wholesale

level

5 5 5 - 5 5

At retail level 10 5 5 5 10 10

Post harvest

losses reason

Moistur

e loss

Crushing Crushing Moisture

loss

Crushing

and

Rotting

Rotting during

transportation

Packing Jute Bag Jute Bag Jute Bag Jute Bag Wooden

Box

Jute Bag

Packing

capacity (Kg)/

unit

30 - 35 28 - 35 25 30 - 32 18 - 20 10 - 20

Table 3 shows the production volume (average) of different OSV in the region and other details of

production and post harvest processes in the region. It has been observed that primary post harvest

operations are being carried out at retail level only and due to which there are huge post harvest

losses from farm to retail level (around 20 % in pea, 15 % in tomato and capsicum).

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1.6. Marketing Channel Followed:

Farmers → Aggregators→ Wholesalers → Retailers/ Supermarkets → Consumers

This is the main marketing channel followed in CHEA model, farmers send their produce to aggregator/

village commission agent, who is in touch with wholesalers at Haldwani market and sends the produce to

them. From Haldwani market, the produce is sold to retailers/ other wholesale markets (Lucknow, Meerut

etc) and finally to consumers.

1.7. Description of value chain’s members

1.7.1. Off-season vegetable growers

Through direct observation and discussion with farmers, the results showed that:

• Average area under off-season vegetable production per farmer is around 17 nalis/ farmer (50 nalis

= 1 ha.), farmers practice crop rotation in their fields as follows:

January – Potato

June – Tomato, Cabbage, Cauliflower

July (end) - Pea

• Most of the farmers are dependent upon Haldwani Mandi Traders for seed supply and are not

aware of the latest varieties for production; very few progressive farmers are buying seeds directly

from input suppliers.

• Farmers follow the cultivation procedure as sowing of seeds, spraying of pesticide and harvesting of

produce at the end.

• Farmer’s knowledge regarding scientific cultivation of off-season vegetable is very limited.

• Most of the farmer’s are not aware of soil sampling for soil testing even though Govt. Department

is doing soil testing but farmers are not aware of further recommendation to be followed even

after soil testing.

• Micronutrient deficiency (Curds becomes bluish colour during March sown cauliflower due to

deficiency of molybdenum), heavy rainfall during growing season (improper germination of pea

seeds), diseases (French bean turns yellow due to wilt) are some of the factors that leads to low

level of production.

• Most of the farmers take advance from Haldwani mandi traders (70% as advance) before crop is

cultivated and are under debt. It was found that most of the farmers have debt of Rs.10,000 –

Rs.20,000.

• There is complete absence of primary post harvest operations (sorting/ grading etc) by farmers.

• Farmers are not aware of the market rates, whatever information is supplied by aggregator/ village

commission agent; he has to rely upon them.

• As farmers grow only cash crops, cereals (wheat/rice) have been supplied by Haldwani mandi

traders to the farmers.

• Besides off-season vegetables, farmers do cultivation of potato, lime, fruit crops such as peach,

Khumani (wild apricot) etc.

1.7.2. Aggregator/ Village Commission Agent

He is the main link between Haldwani Mandi traders and farmers. He is on the roadside where farmers

brought their produce. He performs the operation of loading, unloading, putting marks on the packing units

(Name of the farmer and name of the trader to whom it should be sent, figure 12).

Figure 12 . Name of the farmer and trader (as symbol) is marked on packing

He charges around Rs. 4-5/ packing unit. He also performs the function of information provider to traders

about the production level in the fields, consumable requirements of the farmers etc. He is also in touch

with transporters for loading of produce.

1.7.3. Transporters

Transporters act as one of the main link between production area and market. Transportation is mainly

done at two levels:

i) Produce loaded on animal (av. Charges @ Rs. 10 per packing unit)

ii) Since the production is scattered and small quantities from different fields, transporters

collects produce from collection points through aggregator and charge around Rs. 8 - 11/

packing unit produce for a distance of 80 Km upto Haldwani Mandi.

1.7.4. Wholesalers

Village commission agent sends the produce to wholesalers in Haldwani Mandi. A wholesaler knows the

production statistics of farmers produce through village commission agents. He also knows the demands of

the farmers, his requirements for consumable items, monetary support. The traders in Haldwani mandi also

provides input services to the farmers and maintains their accounts records for each farmer. Farmers are

under debt of these traders as they are over dependent on them for their day to day requirements. Besides

Haldwani, now wholesalers are also coming up at Bhawali region (presence of 3-4 wholesalers) which is

near to the production area (around 40-50 km distance as compared to 100 km distance to Haldwani).

1.7.5. Retailers

Retailers at hawkers level, organized retail level etc have tie up with wholesalers at Haldwani mandi and

they dont’ have any links with farmers. The price difference of most of the produce between wholesalers

and hawkers ranges between 25-35 % depending upon the production volume. Recently, due to

intervention of NGOs, some of the vegetables (other than OSV) have been sold at Nainital and Bhimtaal

areas at retail level that holds promising future.

1.7.6. Consumers

Consumption is at two levels i.e. direct consumers who purchase produce from hawkers at retail level and

indirectly through hotels and Restaurants.

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1.6. Various marketing cost components in the value chain of OSV

Various marketing cost components (Table 4) for OSV such as packing, transportation, commissions,

wastages, miscellaneous charges were taken into consideration. Table revealed that highest marketing cost

was found in tomato (Rs. 6.64 per Kg or 33.20 % of wholesale price and lowest in French bean (Rs.3.75 per

Kg or 20.83 % of wholesale price)

Table 4. Various marketing cost components in the value chain of off-season vegetables

No.

Cost factors

(Rs./kg)


Bean

Tomato Capsicum

1 Packing 0.31 0.32 0.40 0.32 1.58 0.67

2 Transportation cost

(animal drawn cart)

0.46 0.48 0.60 0.48 0.74 1.00

3 Transportation cost

(Roadside to

Haldwani Mandi)

0.34 0.25 0.32 0.35 0.42 0.53

4 (2+3) Total Transportation

Cost

0.80 0.73 0.92 0.83 1.16 1.53

5 Aggregator

Commission

0.15 0.16 0.20 0.16 0.26 0.33

6 Farm wastage 1.50 0.00 0.00 0.00 0.00 0.00

7 Wholesale wastage 1.50 0.68 0.68 0.00 1.00 1.10

8 Unloading charges at

mandi (Rs./unit)

0.06 0.06 0.08 0.06 0.05 0.13

9 Weighing charges @

Rs. 0.75 / unit

0.02 0.02 0.03 0.02 0.04 0.05

10 Stationary charges at

mandi @ Rs.0.50/ unit

0.02 0.02 0.02 0.02 0.03 0.03

11 Weighing error @ 5 % 1.50 0.68 0.68 0.90 1.00 1.10

12 Commission rate

charged to farmer @

8 % (Rs./Kg)

2.40 1.08 1.08 1.44 1.52 1.20

13

(8+9+10+

11+12)

Total Commission

Charges at Wholesale

level (Rs./Kg)

4.00 1.86 1.89 2.44 2.64 2.51

14

(1+4+5+6

+7+13)

Total Marketing Cost

(Rs./Kg, this cost

excludes Input Cost)

8.26 3.75 4.09 3.75 6.64 6.14

1.7 Structure marketing margin between farmers and wholesale level

Within the marketing cost, the share of packing, transport a

at farm and wholesale level and commission rate

the cases, commission rate at wholesale level cha

total marketing cost) contributes most to the total marketing cost this was followed by transportation cost

in most of the cases (highest in capsicum @ 24.92 % of the total marketing cost)

The marketing cost at wholesale market level comprises of many factors i.e. 8% (2.5 % mandi tax + 5.5 %

commission by trader) commission, stationary charges, unloading charges at wholesale market (mandi),

weighing charges and weighing errors (hidden cost

transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers have to

bring their produce at road level through donkeys (produce loaded on animals) which sometime

than the transportation from road to wholesale market.

Figure 13. Structure marketing margin between farmers and wholesale level

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Structure marketing margin between farmers and wholesale level

the marketing cost, the share of packing, transport at two levels, aggregator’s commission, wastages

level and commission rate at wholesale level charged to farmer was analysed.

the cases, commission rate at wholesale level charged to farmers (highest in French bean @ 65.07 % of the


in most of the cases (highest in capsicum @ 24.92 % of the total marketing cost), Figure 13



weighing charges and weighing errors (hidden cost factor) and all the cost are born by farmers. In case of


bring their produce at road level through donkeys (produce loaded on animals) which sometime

than the transportation from road to wholesale market.

. Structure marketing margin between farmers and wholesale level

Commission at wholesale

level charged to farmers

Wholesale wastage

Farm wastage

Aggregator Commission

Transportation

Packing

t two levels, aggregator’s commission, wastages

charged to farmer was analysed. In all

rged to farmers (highest in French bean @ 65.07 % of the


, Figure 13.



factor) and all the cost are born by farmers. In case of


bring their produce at road level through donkeys (produce loaded on animals) which sometimes cost more

1.8

. Pri

ce M

ap

pin

g f

or

Off

-se

aso

n v

eg

eta

ble

s u

nd

er

CH

EA

mo

de

l

Pri

ce m

ap

sta

ted

th

at

farm

er’

s sh

are

in

en

d p

rice

in

OS

V i

s lo

we

st i

n C

ap

sicu

m (

31

.18

%)

an

d h

igh

est

in

Pe

a (

67

.13

%)

wh

en

all

the

fa

cto

rs o

f p

rod

uct

ion

an

d o

the

r co

st f

act

ors

are

ta

ken

in

to c

on

sid

era

tio

n.

CR

OP

Pe

a

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

20

.14

0

.31

0

.80

3

0.0

0

S

ha

re o

f e

nd

pri

ce

(%)

67

.13

1

.03

2

.67

2

9.1

7

Ca

bb

ag

e

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

9.0

2

0.3

2

0.7

3

13

.50

S

ha

re o

f e

nd

pri

ce

(%)

66

.81

2

.37

5

.41

2

5.4

1

Ca

uli

flo

we

r P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

7.4

1

0.4

0

0.9

2

13

.50

S

ha

re o

f e

nd

pri

ce

(%)

54

.89

2

.96

6

.81

3

5.3

4

Fre

nch

Be

an

P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

10

.25

0

.32

0

.83

1

8.0

0

S

ha

re o

f e

nd

pri

ce

(%)

56

.94

1

.78

4

.61

3

6.6

7

To

ma

to

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

9.7

2

1.5

8

1.1

6

20

.00

S

ha

re o

f e

nd

pri

ce

(%)

48

.60

7

.90

5

.80

3

7.7

0

Ca

psi

cum

P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

6.8

6

0.6

7

1.5

3

22

.00

S

ha

re o

f e

nd

pri

ce

(%)

31

.18

3

.05

6

.95

5

8.8

2

FA

RM

ER

PA

CK

ING

TR

AN

SP

OR

TW

HO

LES

ALE

1.9. SWOT Analysis – CHEA Model

Strength: The region is very well suited to off-season vegetable production and CHEA has created 31

FIGs (Farmers Interest Groups) i.e. 20 farmers/ group in the region and cluster approach has been

initiated, they have also created CHEA Utpadak and Vipanan Samuh (Producer and Marketing

Cluster) which is at nascent stage. They have also started farmer’s retail centre at Bhimtaal recently

with the support of NABARD. Further to this, direct marketing by farmers to Nainital and Almora

markets have been explored recently which shows good results and farmers are getting good prices

for their produce.

Weakness: Farmers are not aware of the grading and quality standards of different off season

vegetables cultivated in the region. Transportation from field to market is cumbersome process.

Farmers are dependent upon traders for inputs and marketing of produce. There is complete lack of

market intelligence at farmer’s level; they don’t know the prices of the off-season vegetables during

production time. Due to fragmentation of land and greater distance from field to road,

transportation cost is generally high and collective marketing by farmer is totally absent. Farmer’s

don’t have any infrastructure where primary post harvest operations could be done together and

storage could be possible.

Opportunity: Since cluster approach (CHEA Utpadak and Vipanan Samuh) has been defined by

Nainital based NGO, further improvement in value chain is possible through creation of producer

company/ cooperative etc. Nainital, Bhimtaal, Ulmora etc are tourist places and these places are

nearby to the production area, there is good demand of off-season vegetables in these places and

presence of retail centre could further shortened the intermediateries in the trade and hence

margins of farmers could further be improved.

Threat: Farmers are dependent upon Haldwani traders for inputs for production and other

consumables for their family. They are also under debt of these traders therefore it will be difficult

for them to do marketing on their own. Presence of CHEA Utpadak and Vipanan Samuh (Cluster) is

an important step in collective marketing but their sustainability needs to be defined properly so

that even if the NGO stops facilitation, the cluster could sustain on its own.

II. Value Chain Analysis of different Off-Season Vegetables of Kapkot Block of district Bageshwar of

Uttrakhand (SHAMA Farmers’ Federation Model)

2.1. Background and General Information

Ministry of Agriculture, Govt. Of India supported a project “Samaikit Udyanik Vikas Pariyojna” being

run by CHEA, an NGO in Kapkot block of Bageshwar district to increase the production of

horticultural produce in the region. Initially the project was run by an NGO (for 5 years) and later on

handed over to farmers federation (Daanpur Krishak Maha Sangh). Farmers of the region felt the

need of market after the project and therefore collection, grading and marketing centre (retail outlet

being run by farmers federation) was established with the support of Horticulture Department and

State Government.

Figure 14. Collection, Grading and Marketing Centre of Farmer’s Federation at Bageshwar

Block Covered: Kapkot

Villages: 36

Nearby Market: Bageshwar

Av. Distance of Market from Field: 55 Km


S.No

.

Particulars Crops


Bean

Tomato Capsicum

1 Av. no. of

farmers

involved in

Off-Season

Vegetable

Cultivation

400 400 350 200 450 200

2 Area under

cultivation

(ha.) – (Av. 2.5

nalis/ farmer)

20.00 20.00 17.50 10.00 22.50 10.00

Harvesting

time

April –

June

June –

Nov.

June – Nov. Apr. – June June –

Sept.

Mar. – Sept.

3 Production

volume (t)

111.38 135.00 118.13 28.35 216.00 61.43

Hybrid /

Improved

variety

Arkel,

Azad

Varun Snow Crown Anupama,

Contender,

Black

Queen

Vaishali Bharat,

Gungun

Av. Yield

(q/ha.)

55.69 67.50 67.50 28.35 96.00 61.43

Post harvest

operations

followed


At retail level Sorting Sorting Sorting Sorting Grading Sorting

Post harvest

losses (%)

At farm level 5 5 5 5 10 10

During

transportation

5 - - - - 5

At retail level

15 10 20 10 10 20

Packing Gunny

bags

Gunny

bags

Gunny bags Gunny bags Wooden

boxes

Gunny bags

Packing

capacity (Kg)

30 40 27 15 15 17


production and post harvest processes in the region. It was found that average productivity of most

of the OSV is very low in the region. Primary post harvest operations are being carried out at retail

level only but the post harvest losses are huge at retail level due to absence of cool chain

management, lack of availability of space at retail level. During production period, it’s difficult to

handle the volume of produce at retail level.

2.2. Off-season vegetables value chain mapping

VC Supporter VC Operator Informal business

relation (Product)

INPUTS PRODUCTION MARKETING CONSUMPTION

Private

Consumers

Retailer

(Danpur

Krishak

Maha

Sangh)

Farmers

Public and

Private

Extension

Service

(Subsidised

Seeds by

Horticulture

Department)

Other

Consumers

(Restaurants

and Hotels)

Retailers

(Around 40-

50 small

retailers in

Bageshwar)

Retailer

(Sunday

Market)


Farmers → Retailers→Consumers

Farmers sold different off-season vegetables directly to retailers, mainly to Danpur Krishak Mahasangh and

also to 50-60 local vegetable retailers at Bageshwar besides them retail market (Sunday market) is

organized once in a week where some farmers brought their produce. Since the production volume is less

and there is no wholesale market at Bageshwar, most of the off-season vegetable produced in the region is

consumed within the Bageshwar district market. The present channel brings higher price and higher profits

to farmers as the intermediate agents were mainly cut off.




• Average area under off-season vegetable production per farmer is around 2.5 nalis/ farmer (50

nalis = 1 ha.), farmers are mainly cultivating potato under major area (around 10-15 nalis/farmer).

• Seeds for cultivation are mainly procured by farmers from Horticulture Department, Govt. Of

Uttrakhand under subsidized rates (around 50 % subsidy under AJEEVIKA programme).

• Farmers follow the cultivation procedure as sowing of seeds, spraying of pesticide and harvesting of

produce at the end. Farmer’s knowledge regarding scientific cultivation of off-season vegetable is

limited. The average productivity of most of the off-season vegetables is very low, due to following

reasons:

1. Farmer’s complaint of spurious quality seeds

2. There is no irrigation facility available

3. Absence of scientific cultivation management practices

4. Due to various weather vagaries (such as heavy rainfall, hailstones etc) production levels falls down

• Generally women do most of the farm operations

• Post harvest farm losses are mainly in tomato and capsicum

• Transportation of produce is one of the biggest hurdle to farmer as roadside is far away from fields.

Produce is mainly transported through donkeys / rope ways to the main road.

• Farmers are smart in market price query, most of the farmers have mobile phones and they gain

information through retailers, jeep drivers (they are the main transport link between production

area to Bageshwar), other farmers.

2.4.2. Transporters


done at two levels:

i) Produce loaded on animal (around 1-2 Km from field to roadside, av. Charges @ Rs. 12 per

quintal of produce) and rope way (av. Charge of Rs. 8 per quintal of produce (Rs. 4 for operator

+ Rs. 4 for diesel to run rope way, Figure 15).

Figure15. Rope way system for transportation of valley OSV produce to roadside

ii) Since the production is scattered and small quantities from different fields Jeep owners act as

link between roadside to market transportation (upto Bageshwar). They charge around Rs. 25/

40 kg produce for a distance of 55 Km. They also act as link between farmer and retailer for

price discovery and demand-supply assessment.

2.4.3. Retailers

Collection, Grading and Market Centre, Danpur Krishak Mahasangh (Farmer’s Federation) is one of the

main retailer (Figure 16) for off-season vegetable production in the area.

Figure 16. Retail outlet of Farmer’s Federation, Bageshwar

Besides them there are around 50-60 other vegetable retailers in the Bageshwar market. Danpur Krishak

Mahasangh is a small centre owned by the Farmer’s Federation but run by entrepreneur who charge 8 %

commission on the market rate of produce to the farmer. The entrepreneur bears the cost for running the

centre and pays to various stakeholders as monthly rent to the federation (around Rs. 800 per month),

municipality of the district (Rs.1700 for 6 months), electricity and water bills (Rs. 500 per month) and labour

charges (Rs. 5000 per month) and also has good reputation with the farmers as he is also the farmer from

the same region of production. They generally do collection, grading (sometimes) and selling of the

farmer’s produce directly to the consumers. During Off-season vegetable production season, they do selling

to other retailers in the market besides direct consumers. Due to small area of centre (Figure 17)and rainy

season during off-season vegetable production, the retailer tries to sell all the produce immediately from

the centre and there is huge wastage at retail level due to these reasons.

Figure 17. Unorganized storage at Retail centre of Farmer’s Federation, Bageshar

Rates are generally decided by the retailers on the basis of demand-supply and market rates of Haldwani

Mandi and Bageshwar Market.

2.4.4. Consumers

Retail outlets at Bageshwar are the main off-season vegetable suppliers to the consumers. Usually

consumer evaluates vegetables quality by eye and hand touching. The criteria order applied when selecting

vegetables are: size, maturity or ripeness or color, shape, taste or flavour or aroma. They make decision

base on the size appearance and price.

2.4.5. Hotels and Restaurants

In Bageshwar district, March to August is the main tourist season and it coincides with the off-season

vegetable production season. Therefore there is enough demand of off-season vegetables in hotels and

restaurants during that period. There are around 25 - 30 hotels and restaurants in the Bageshwar district

and they directly buy off-season vegetables from the retailers.

2.5

. A

cto

rs a

nd

th

eir

Fu

nct

ion

s

K

INP

UT

SP

RO

DU

CT

ION

TR

AN

SP

OR

TM

AR

KE

TIN

GC

ON

SU

MP

TIO

N

Cit

y

Co

nsu

me

rs

Fa

rme

rs

Re

tail

er

Fa

rme

rs

Ho

rtic

ult

ure

De

pa

rtm

en

t

A C T O R S

Ho

tels

an

d

Re

sta

ura

nts

Kio

sk

Re

tail

er

Do

nke

y

Loa

d

Inp

ut

Su

pp

lie

rs

Jee

p O

wn

er

Bu

yin

g

pro

du

ce f

or

con

sum

pti

on

Sto

rin

g

So

rtin

g

Bu

yin

g +

Se

llin

g

Loa

din

g +

Un

loa

din

g,

tra

nsp

ort

ati

on

by

pic

k u

p

ve

hic

le,

lin

k

be

twe

en

farm

er

an

d

reta

ile

r to

ass

ess

de

ma

nd

-

sup

ply

Lan

d

pre

pa

rati

on

So

win

g

Sp

ray

ing

Ha

rve

stin

g

Pa

ckin

g

Su

pp

ly o

f

see

ds,

pe

stic

ide

s a

nd

fert

iliz

ers

A C T I V I T I E S

Tro

lle

y

Op

era

tor


Table on various marketing cost components in the value chain of OSV (Table 6) revealed that highest

marketing cost was found in Capsicum (Rs. 18.50 per Kg or 46.25 % of retail price) and lowest in the

cabbage (Rs. 5.63 per Kg or 28.15 %).

Table 6: Various marketing cost components in the value chain of OSV

Cost factors Pea Cabbage Cauliflower French

Bean

Tomato Capsicum

Packing (Rs./Kg) 0.27 0.20 0.30 0.53 0.67 0.47

Transportation

cost (From Shama

to Bageshwar-

Rs./Kg.)

0.83 0.83 0.83 0.83 0.83 0.83

Post harvest loss

@ farm level

(Rs./Kg.)

1.50 1.00 1.25 1.25 2.50 4.00

Post harvest loss

@ transport level

(Rs./Kg.)

1.50 0.00 0.00 0.00 0.00 2.00

Post harvest loss

@ retail level

(Rs./Kg.)

4.50 2.00 5.00 2.50 2.50 8.00

Commission rate

charged to farmer

(Rs./Kg)

2.40 1.60 2.00 2.00 2.00 3.20

Total Marketing

Cost (Rs./Kg, this

cost excludes

Input Cost)

11.00 5.63 9.38 7.11 9.33 18.50

2.7. Structure marketing margin between farmers and consumers

Within the marketing cost, the share of packing, transport at two levels, wastages at farm, transport and

retail level and commission rate charged to farmer was analysed. In all cases, we look at the cost structure

of simple commodity chain where farmers deliver their produce to the Shama Federation retailer. In all the

cases, wastage at retail level (highest in cauliflower @ 53.30 % of the total marketing cost) followed by

commission rate charged to farmers (highest in cabbage @ 28.42 % of the total marketing cost) contributes

most to the total marketing cost (Figure 18) and total marketing cost for capsicum is highest as compared

to other OSV (Figure 18).

Wastage at retail level may be attributed to the following reasons:

• Complete absence of cool chain management at the retail centre.

• During off-season vegetable production season (June-September), it’s difficult to handle produce at

small scale level retail centre and rainy season interferes in post harvest handling of the produce

and which attributes to wastage due to spoilage (in case of capsicum, tomato etc), improper

handling of the produce (loss of whiteness of cauliflower curd, drying and loss of green colour of

pea etc).

Figure 18. Structure marketing margin between farmers and consumers

0

10

20

30

40

50

60

70

80

90

100

Commission rate charged to

farmer

Retail wastage

Transport wastage

Farm wastage

Transport - II

Transport - I

Packing

Table 7. Prices and values of the Off-Season Vegetables grown in the region

Unit Crops


Bean

Tomato Capsicum

Producer

Quantities

Produced

Tonnes 111.38 135.00 118.13 28.35 216.00 61.43

Producer

Price

Rs./ Kg. 27.60 18.40 23.00 23.00 23.00 36.80

Total value

production

Million

Rs.

3.07 2.48 2.72 0.65 4.97 2.26

Marketing

Sector

Total

marketing

cost

Rs./Kg.

( %)

11.00

(36.67 %)

5.63

(28.15 %)

9.38

(37.52 %)

7.11

(28.44 %)

9.33

(37.32 %)

18.50

(46.25 %)

Consumer

Quantities

consumed

Tonnes 105.81 128.25 112.22 26.93 194.40 55.29

Retail Price Rs./Kg. 30.00 20.00 25.00 25.00 25.00 40.00

Total value

consumption

Million

Rs.

3.17 2.57 2.81 0.67 4.86 2.46

2.8

. P

rice

Ma

pp

ing

fo

r O

ff-s

ea

son

ve

ge

tab

les

un

de

r S

HA

MA

mo

de

l

CR

OP

Pe

a

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

16

.76

0

.27

0

.83

3

0.0

0

S

ha

re o

f e

nd

pri

ce

(%)

55

.87

0

.90

2

.77

4

0.4

6

Ca

bb

ag

e

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

12

.56

0

.20

0

.83

2

0.0

0

S

ha

re o

f e

nd

pri

ce

(%)

62

.80

1

.00

4

.15

3

2.0

5

Ca

uli

flo

we

r P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

13

.81

0

.30

0

.83

2

5.0

0

S

ha

re o

f e

nd

pri

ce

(%)

55

.24

1

.20

3

.32

4

0.2

4

Fre

nch

Be

an

P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

14

.19

0

.53

0

.83

2

5.0

0

S

ha

re o

f e

nd

pri

ce

(%)

56

.76

2

.12

3

.32

3

7.8

0

To

ma

to

Pri

ce R

ece

ive

d

(Rs.

/Kg

.)

14

.37

0

.67

0

.83

2

5.0

0

S

ha

re o

f e

nd

pri

ce

(%)

57

.48

2

.68

3

.32

3

6.5

2

Ca

psi

cum

P

rice

Re

ceiv

ed

(Rs.

/Kg

.)

20

.08

0

.47

0

.83

4

0.0

0

S

ha

re o

f e

nd

pri

ce

(%)

50

.20

1

.18

2

.08

4

6.5

4

Fa

rme

rs r

ece

ive

low

est

sh

are

of

en

d p

rice

(5

0.2

0 %

) in

ca

psi

cum

an

d h

igh

est

in

ca

bb

ag

e (

62

.80

%).

FA

RM

ER

PA

CK

ING

TR

AN

SP

OR

TR

ET

AIL

2.9. SWOT Analysis – Shama Federation Model

Strength: The region is very well suited to off-season vegetable production and presence of local authority

(Horticulture department) in growing region could further improve the scientific crop production practices

followed by producer. The direct marketing channel between farmers and retailers has been developed,

which is not involving lot of intermediate agents, thereby farmers gain better income with better market

prices.

Weakness: Most of the production of off-season vegetable is at low scale due to less land devoted to off

season vegetable production by farmers. Productivity of off-season vegetable is very low as compared to

recommended productivity of specific varieties due to presence of spurious seeds, absence of irrigation

facilities, low awareness level amongst farmers for scientific crop production practices, weather vagaries

etc factors. Farmers are not aware of the grading and quality standards of different off season vegetables

cultivated in the region. Transportation from field to market is cumbersome process. Post harvest losses at

farm and retail level contribute maximum loss of value due to interference of rainy season during

production time. The production cost and marketing cost are high and most importantly involvement of

Danpur Krishak Mahasangh is very limited in the entire value chain in terms of operation.

Opportunity: Since the region is well suited for off season vegetable production, more area could be

brought under cultivation to increase the scale of production and with proper coordination amongst Dagri

Samuh (farmers from 36 villages that comprises Danpur Krishak Mahasangh) for production till marketing

process, further improvement in the value chain could be possible. At retail (Danpur Krishak Mahasangh

centre) outlet, provision of cool chain management could further improve the condition and perishability

due to post harvest losses (retail level) could be minimized. With further improvement in production scale,

grading of the produce and possible tie ups with wholesalers at Delhi, Lucknow, Barailey could increase

farmer’s income.

Threat: High migration rate of farmer’s family members from villages to city areas leading to greater

exodus due to loss of interest in farming and also there is strong competition from other off season

vegetables growing region in the Uttrakhand (if produce is sent to wholesale markets at Haldwani, Delhi,

Lucknow, Barailey etc). High perishability and marketing cost are also significant constraints.

III. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal, Ramgarh and Dhari Blocks of

district Nainital of Uttrakhand (Vinodhara Agritech Model)


Vindohara Agritech is a proprietor company being run by agribusiness professional in the field of OSV

production and marketing in the growing region. The company provides input, extension and marketing

services to the farmers. The company is operational for the last one year.

Blocks Covered: Bhimtaal, Ramgarh and Dhari

Markets

For A Grade Produce: Meerut, Lucknow Mandi’s and Retailers (Reliance Fresh, 4Fresh) in Delhi

For B Grade Produce: Haldwani Mandi

Aggregation points of OSV produce

Raotighat, Nathuakhan, Ghigrani, Paharpani

Figure 19. Vinodhara Agritech, Collection and Distribution Centre of OSV


S.No. Particulars Crops


Bean

Tomato Capsicum

Av. no. of

farmers

involved in

Off-Season

Vegetable

Cultivation

40 75 35 40 70 9

Av. Land

devoted to

off-season

(nalis per

crop)

6 4 3 1 3 1

Ha./crop

4.80 6.00 2.10 0.80 4.20 0.18

Av. Yield

(t/ha.)

7.41 8.65 8.65 6.18 24.70 4.32

Production

volume (t)

35.57 51.90 18.17 4.94 103.74 0.78

Harvesting

time

April -

August

15th

May

– Sept.

15th

May –

Aug.

June –

Oct.

June –

Sept.

15 June – Aug.

Hybrid /

Improved

variety

Arkel,

Azad P1

Krishna,

Varun,

Manas,

Riya

Snow

Crown,

Snow mist,

Kavery,

Sweta

Anupama Himsona,

Manisha,

777,

Abhay,

Aishwary

a, Lico

Green

Miracle,

California

Wonder,

Crystal Green

Post harvest

operations

followed


At wholesale

level

Sorting Sorting Sorting Sorting Grading Sorting

Post harvest

losses (%)


At wholesale

level

4.5 2.5 2.5 4.5 2.5 2.5

Post harvest

losses reason

Moistur

e loss

Crushing Crushing Moisture

loss

Crushing

and

Rotting

Rotting during

transportation

Packing Gunny

bags

Gunny

bags

Gunny bags Gunny

bags

Wooden

Box

Cartons

Packing

capacity (Kg)/

unit

40 25 25 40 18 17

Table 8 showed that less no. Of farmers are involved with Vinodhara Agritech (as the company selects only

progressive farmers) and there are many options for varieties for farmers. Post harvest losses are

minimum in this model.

3.2

. O

ff-s

ea

son

ve

ge

tab

les

va

lue

ch

ain

ma

pp

ing

INP

UT

SP

RO

DU

CT

ION

TR

AD

EM

AR

KE

TIN

GC

ON

SU

MP

TIO

N

Cre

dit

Inst

itu

tio

ns

(Kis

an

Cre

dit

Ca

rd,

Ba

nk

s)

Off

-se

aso

n

veg

eta

ble

farm

ers

Vin

od

ha

ra

Ag

rite

ch a

s

Ag

gre

ga

tor

an

d

Ma

rke

tin

g

Ag

en

t

“A”

gra

de

pro

du

ce t

o

Luck

no

w,

Me

eru

t

Ma

nd

i’s

“A”

gra

de

pro

du

ce t

o

Re

tail

ers

such

as

Re

lia

nce

Fre

sh,

4

Fre

sh e

tc

“B”

gra

de

pro

du

ce t

o

Ha

ldw

an

i

Ma

nd

i

Co

nsu

me

rs

Ext

en

sio

n

&

Inp

ut

Se

rvic

e

Pro

vid

er

(Vin

od

ha

ra

Ag

rite

ch)

VC

Su

pp

ort

er

VC

Op

era

tor

In

form

al b

usi

ne

ss r

ela

tio

n (

Pro

du

ct)

In

form

al b

usi

ne

ss r

ela

tio

n (

Info

rma

tio

n)

3.3. Two types of Marketing Channel Followed:

1.

Farmers → Aggregator→ Wholesalers →Retailers → Consumers

Through Meerut, Lucknow Mandi’s

Farmers → Aggregator→ Retailers → Consumers

Through Reliance Fresh, 4Fresh retailers in Delhi

It comprises of 40 % of the produce of “A” grade quality

2.

Farmers → Aggregator→ Wholesalers → Retailers → Consumers

It comprises of 60 % of the produce of “B” grade quality




• Average area under off-season vegetable production per farmer is around 18 nalis/ farmer (50 nalis

= 1 ha.), farmers practice crop rotation in their fields as follows:

January – Potato

June – Tomato, Cabbage, Cauliflower

July (end) - Pea

• Farmers follow the cultivation procedure as sowing of seeds, using fertilizers, spraying of pesticide

and fungicides and harvesting of produce at the end.

• Progressive farmers are attached to Vinodhara Agritech.

• Seeds have been supplied by Horticulture department and private input suppliers that includes

Vinodhara Agritech (as Input supplier also).

• As the fields are below the level of roadside, transportation cost is a major problem. Transportation

from field to roadside is mainly done through animals costing av. Rs. 0.75 / kg (depends upon the

distance between field and road).

• Farmers are free to supply their produce to any buyer depending upon the prevailing market rates

of Haldwani mandi. Some of the farmers are in touch with traders at Haldwani mandi.

• Besides off-season vegetables, farmers do cultivation of fruit crops such as peach, apricot etc.

3.4.2. Aggregator and Marketing Agent

Vinodhara Agritech is a proprietary firm run by Mr. N. P. Singh, he is an agribusiness professional with

Masters in Agriculture and operates through hub and spoke model for off season vegetables in the region.

The company provides input services, extension services and act as aggregator and do final marketing of

produce to various destinations depending upon the quality of produce. The company operates through

aggregation/ collection centres (around 4-5) in different production areas (in Bhimtaal, Ramgarh and Dhari

blocks). These centres (Raatighat, Nathuakuan, Ghigrani, Niglat etc areas) are located between 8 to 40 km

distance from the Hub Centre. The company do weighing (through electronic balance) and make on the

spot payments to the farmers based upon the prevailing market rates of Haldwani mandi. The company has

developed its’ own online market rate assessment system and also discover prices of the produce through

Reuter’s Market Light (sms crop service) information system. The company charges 5 % commission rate

from farmers (2.5 % mandi tax + 2.5 % company’s commission).

3.4.3. Transporters


done at two levels:

• Produce loaded on animal (av. Charges @ Rs. 2 per Kg produce)

Figure 20. Production of OSV in valley area (transportation cost are high)

• Since the production is scattered and volumes are low, transportation is done by Vinodhara

Agritech from various collection points (spokes) to main centre (hub) with its distance ranges

from 8 to 40 Km from collection points.

3.4.4. Wholesalers

i) Haldwani Mandi

Vinodhara Agritech has tie up with various wholesalers at Haldwani mandi and the company sends “B”

grade produce to wholesalers during production time. These wholesalers charges around 5-6 % commission

on the produce. These wholesalers don’t do any grading, sorting operations. Their role is limited to buying

and selling of produce at their own sheds/ market area.

ii) Lucknow, Meerut Mandis’

Vinodhara Agritech also supplies “A” grade produce to mandis’ other than Haldwani and gets premium

price for its’ produce. It comprises of 40 % of the produce.

3.4.5. Retailers

Vinodhara Agritech has tie up with various retailers such as Reliance Fresh, 4 Fresh etc in Delhi. The

company do sorting, grading of produce as per requirement of the retailers with a premium price of more

than 25 % (Table 9 ).

Table 9. Av. Market rates at Haldwani mandi level, Lucknow mandi level and retail level in Delhi

Market Rates

(Rs./kg)


Bean

Tomato Capsicum

Av. Rates at wholesale level – Haldwani Mandi (Rs./Kg)

“B” grade produce

rates (60% of the

total produce)

14.50 4.00 12.00 12.00 10.00 14.00

“A” grade produce

rates (40% produce)

22.00 6.00 16.00 19.00 14.50 20.50

Av. Rates at

wholesale level –

Lucknow/ Delhi

Mandi’s (Rs./Kg)

37.50 13.00 27.50 27.50 22.50 30.00

Av. Rates at

organized retail level

– Reliance Fresh,

4Fresh etc (Rs./Kg)

65.00 25.00 50.00 40.00 30.00 60.00

3.5

. A

cto

rs a

nd

th

eir

Fu

nct

ion

s

K

INP

UT

SP

RO

DU

CT

ION

TR

AN

SP

OR

TT

RA

DE

MA

RK

ET

ING

CO

NS

UM

PT

ION

Cit

y

Co

nsu

me

rs

Fa

rme

rs

Ho

rtic

ult

ure

De

pa

rtm

en

t

(Pu

bli

c

sect

or)

A C T O R S

Ho

tels

an

d

Re

sta

ura

nts

An

ima

l Lo

ad

Vin

od

ha

ra

Ag

rite

ch

Va

n

Bu

yin

g

pro

du

ce f

or

con

sum

pti

on

Gra

din

g

So

rtin

g

Bu

yin

g +

Se

llin

g

Pa

ckin

g

Tra

nsp

ort

Loa

din

g +

Un

loa

din

g,

tra

nsp

ort

ati

on

by

pic

k u

p

ve

hic

le,

lin

k

be

twe

en

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er

an

d

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ole

sale

tra

de

r

Lan

d

pre

pa

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on

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win

g

Sp

ray

ing

Ha

rve

stin

g

Su

pp

ly o

f

see

ds,

pe

stic

ide

s a

nd

fert

iliz

ers

A C T I V I T I E S

Vin

od

ha

ra

Ag

rite

ch

Wh

ole

sale

Ma

nd

i’s

at

Ha

ldw

an

i,

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no

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Me

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(Re

lia

nce

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sh,

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)

Sto

rin

g

So

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Bu

yin

g +

Se

llin

g


Various marketing components in the value chain were calculated separately for “A” and “B” grade produce

(Table 10 and Table 11). Total marketing cost for Pea is highest amongst all OSV in grade “A” produce while

it’s highest in Capsicum in “B” grade produce.

Table 10. Various marketing cost components in the value chain of off-season vegetables (For “A” grade

produce upto wholesale level)


Bean

Tomato Capsicum

Packing (Rs./kg) 0.38 0.40 0.40 0.88 0.59 1.00

Transportation cost

(on animal cart

Rs./kg)

0.75 0.75 0.75 0.75 0.75 0.75

Transportation cost -

From collection point

to main centre

(Rs./kg)

1.00 1.00 1.00 1.00 1.00 1.00

Transportation cost –

From main centre to

wholesale level

(Lucknow, Delhi

Mandi’s) (Rs./Kg)

1.33 1.33 1.33 1.33 1.33 1.33

Total Transportation

Cost (Rs. / Kg)

3.08 3.08 3.08 3.08 3.08 3.08

Aggregator

Commission @ 2.5 %

(Rs./kg) on the basis

of rates given to

farmers’

0.55 0.15 0.40 0.48 0.36 0.51

Mandi Tax @ 2.5 %

(Rs./kg)

0.55 0.15 0.40 0.48 0.36 0.51

Post harvest losses

At farm level (Rs./ kg)

0.00 0.00 0.00 0.00 0.00 0.00

Post harvest losses at

wholesale level

(Lucknow/Delhi

Mandi’s (Rs./ kg)

1.69 0.33 0.69 1.24 0.56 0.75

Commission rate

charged at wholesale

level @ 7 % (Rs./Kg)

based upon

wholesale level

prices

2.63 0.91 1.93 1.93 1.58 2.10


(Rs./Kg,)

8.88 4.69 6.90 8.09 6.53 7.95

Table 11. Various marketing cost components in the value chain of off-season vegetables (For “B” grade

produce upto Haldwani Mandi wholesale level)


Bean

Tomato Capsicum

Packing (Rs./kg) 0.38 0.40 0.40 0.88 0.59 1.00

Transportation cost

(on animal cart

Rs./kg)

0.75 0.75 0.75 0.75 0.75 0.75

Transportation cost -

From collection point

to main centre

(Rs./kg)

1.00 1.00 1.00 1.00 1.00 1.00

Total Transportation

Cost (Rs. / Kg)

1.75 1.75 1.75 1.75 1.75 1.75

Aggregator

Commission @ 2.5 %

(Rs./kg) on the basis

of rates given to

farmers’

0.36 0.10 0.30 0.30 0.25 0.35

Mandi Tax @ 2.5 %

(Rs./kg)

0.36 0.10 0.30 0.30 0.25 0.35

Post harvest losses


0.00 0.00 0.00 0.00 0.00 0.00

Post harvest losses at

wholesale level

(Lucknow/Delhi

Mandi’s (Rs./ kg)

0.65 0.10 0.30 0.54 0.25 0.35

Commission rate



based upon

wholesale level

prices

1.02 0.28 0.84 0.84 0.70 0.98

Commission charged

to farmers

1.74 0.48 1.44 1.44 1.20 1.68


(Rs./Kg,)

4.52 2.73 3.89 4.61 3.79 4.78

3.7. Structure marketing margin between farmers and wholesale level (Haldwani Mandi)

Within the marketing cost, the share of packing, transportation, wastages at wholesale level and

commission rate charged to farmer was analysed for wholesale level (both for “A” and “B” grade produce)

(Table and Table ). In all the cases, transportation cost (highest in Cabbage @ 64.10 % and 65.67 % of the

total marketing cost) contributes most to the total marketing cost this was followed by commission rate

charged to the farmers in most of the cases (highest in pea @ 38.50 % and cauliflower @ 39.57 % of the

total marketing cost), Figure 21.

In case of transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers

have to bring their produce at road level through donkeys (produce loaded on animals) which sometimes

cost more than the transportation from road to wholesale market and also the produce is “B” grade which

fetches slightly lower prices thereby contributing mainly in the marketing cost. While commission rates are

charged at two levels i.e. at Vinodhara Agritech level (2.5%) followed by commission charged at wholesale

level (Haldwani mandi level, 6-7 %). Therefore commission rates also contributes mainly to the total

marketing cost.

Figure 21. Structure marketing margin between farmers and wholesale level (Haldwani Mandi) for “B”

grade produce

Figure 22 . Structure marketing margin between farmers and wholesale level (Lucknow, Meerut Mandi)

for “A” grade produce

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commission charged to

farmers

Wholesale wastage

Transportation

Packing

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commission charged to

farmers

Wholesale wastage

Transportation

Packing

3.8. Price Mapping for Off-season vegetables under Vindohara Agritech model

Price received by farmer’s after deduction of input cost, Transportation Cost (Animal cart),

Vinodhara Agritech Commission (2.5 %), Mandi Commission (2.5 %) factors (Table ).

Table . Price Mapping for Off-season vegetables under Vindohara Agritech model (From Farmer’s

Field to Wholesale level (Lucknow / Meerut / Delhi Mandi)

CROP

Pea Price

Receive

d

(Rs./Kg.

)

18.90 0.38 3.08 37.50

Share

of end

price

(%)

50.40 1.01 8.21 40.38

Cabbage Price

Receive

d

(Rs./Kg.

)

4.38 0.40 3.08 13.00

Share

of end

price

(%)

56.94 3.08 23.69 16.29

Cauliflowe

r

Price

Receive

d

(Rs./Kg.

)

13.52 0.40 3.08 27.50

Share

of end

price

(%)

49.16 1.45 11.20 38.19

French

Bean

Price

Receive

d

(Rs./Kg.

)

15.49 0.88 3.08 27.50

Share

of end

price

(%)

56.33 3.20 11.20 29.27

FARMER PACKING TRANSPORT WHOLESALE

Tomato Price

Receive

d

(Rs./Kg.

)

12.68 0.59 3.08 22.50

Share

of end

price

(%)

56.36 2.62 13.69 27.33

Capsicum Price

Receive

d

(Rs./Kg.

)

17.01 1.00 3.08 30.00

Share

of end

price

(%)

56.70 3.33 10.27 29.70

3.9. SWOT Analysis – VINODHARA AGRITECH Model

Strength: The company is run by an entrepreneur who is an agribusiness professional. The company

has got all the components of production to marketing aspects such as input supply, packing,

transportation, linking with markets at wholesale level and retail level. They follows hub and spoke

model of procurement of off season vegetables from the farmers and on the spot payments are

made to the farmers based upon actual weight (weighing done by electronic balance) of the

produce. The company also provides extension services to the farmers through farmer’s meetings.

Weakness: Very few numbers of farmers and those who have land holding of more than 20 nalis

each are associated with Vinodhara Agritech. The company selects only progressive farmers. Due to

fragmentation of land and greater distance from field to road, transportation cost is generally high.

The company’s interest is mainly in procurement of “A” grade produce only. The company pay prices

to the farmers based upon the prevailing market rates of Haldwani mandi while they do marketing

upto the level of organized retailers. The company is operational for just one year.

Opportunity: More and more numbers of farmers could be associated with Vinodhara Agritech. This

will increase the volume of the produce and due to various extension services offered by the

company; quality of the produce could also be improved. For scaling up of operations, presence of

skilled manpower (agribusiness) could further improve the system.

Dissemination of market information to farmers of prices of “A” grade produce sent to organized

retailers could improve farmer’s profit margin.

Threat: Since the company provides various services from input supply to marketing, complete

dependence level of farmers on the company could lead to monopoly of the company in the absence

of other stakeholders of agribusiness service provider.

i. Value Chain Analysis for different Off-Season Vegetables of Bhimtaal, Ramgarh and

Dhari Blocks of district Nainital of Uttrakhand (CHIRAG Model)

4.1. Background and General Information

CHIRAG (NGO) commenced its Agri marketing programme in 2007 in its areas of operation.

Project area of CHIRAG

Chirag has initiated the programme in 20 villages across the project areas of Kashiyalek (9 villages) ,

Reetha (6 villages), Suyalbari (4 villages) , Naukuchiyatal (1 villages) and 1 federation in district of

Bagehwar that is also one of the project area. (Table 12).

Table 12. Project area of CHIRAG

Villages in Kashiyalekh Area

Villages in Reetha Area

Villages in Suyalbari Area

Villages in Nauki Area

Villages in Bageshwar Area

Pokhrar Garhgaon Attakhas Alchona One Farmers Federation that covers 60 villages and has 255 registered members

Buribabna Meora Atavirta

Malla Supi Simayal Ulgor

Talla supi Hartola Dhari

Dubkhar Darim

Lodh Chatola

Galla

Parwada

Supi Kafli

Blocks Covered: Kasya, Reetha, Sialbari, Naukichetal and Bageshwar Blocks

Markets: Wholesale market (Delhi, Haldwani), Organized Retailers in Delhi


S.No

.

Particulars Crops


Bean

Tomato Capsicum

Av. no. of

farmers

involved in Off-

Season

Vegetable

- 200 100 65 40 55

Cultivation

Av. Land

devoted to off-

season (nalis

per crop)

11.00 8.00 5.00 12.00 10.00

Ha./crop

44.00 16.00 6.50 9.60 11.00

Av. Yield

(t/ha.)

8.05 8.65 6.18 16.70 4.87

Production

volume (t)

354.20 138.40 40.17 160.32 53.57

Harvesting

time

- Apr. - July July June –

July

July -

August

July - August

Hybrid /

Improved

variety

- Gidion,

Krishna,

Varun,

Manas,

Riya

Snow white Contend

er

Himsona,

Manisha

Local variety

Post harvest

operations

followed


At wholesale

level

- - - Grading

(A, B, C)

-

Post harvest

losses (%)

At farm level - - - - -

At wholesale

level

5 5 5 5 5

Post harvest

losses reason

- - Moisture

loss

Moisture

loss

Puncture and

rotting during

transportation

Packing Jute Bag Jute Bag Jute Bag Wooden

box

Jute Bag

Packing

capacity (Kg)/

unit

20 22 50 18 – Full

9 – Half

17


production and post harvest processes in the region. No data was found for pea, as this crop was not

procured by CHIRAG (in 2008-09, Table 13). In 2009 due to erratic rainfall and low production volume,

CHIRAG did’nt procure that much off-season vegetables.

Table 13 . Procurement of off-season vegetables done by CHIRAG and expected procurement in

2010

Produce Procurement 2007 Procurement 2008 Procurement 2009

Procurement 2010 Cabbage 6673.50 4539.00 1468 12614.06 French bean 40.00 0.00 0 45.00 Tomato 119.00 5495.00 0 6315.75 Cauliflower 208.00 224.00 0 486.00 Capsicum 0.00 1174.00 0 1320.75

4.2

. O

ff-s

ea

son

ve

ge

tab

les

va

lue

ch

ain

ma

pp

ing

INP

UT

SP

RO

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ION

TR

AD

EM

AR

KE

TIN

GC

ON

SU

MP

TIO

N

Cre

dit

Inst

itu

tio

ns

(Kis

an

Cre

dit

Ca

rd,

Ba

nk

s)

Off

-se

aso

n

veg

eta

ble

farm

ers

&V

Ma

rke

tin

g

Sa

mit

is

&

CH

IRA

G a

s

Ag

gre

ga

tor

an

d

Ma

rke

tin

g

Su

pp

ort

Un

it

“A”

gra

de

pro

du

ce t

o

Org

an

ize

d

reta

ile

rs i

n

De

lhi

“A”

an

d “

B”

gra

de

pro

du

ce t

o

Wh

ole

sale

De

lhi

Ma

rke

t

“C”

gra

de

pro

du

ce t

o

Ha

ldw

an

i

Ma

nd

i

Co

nsu

me

rs

Ext

en

sio

n

(CH

IRA

G)

&

Inp

ut

Se

rvic

e

Pro

vid

er

VC

Su

pp

ort

er

VC

Op

era

tor

In

form

al b

usi

ne

ss r

ela

tio

n (

Pro

du

ct)

In

form

al b

usi

ne

ss r

ela

tio

n (

Info

rma

tio

n)


Farmers → F&V Marketing Samiti→ CHIRAG →Wholesalers →Retailers → Consumers

Farmers → F&V Marketing Samiti→ CHIRAG → Retailers → Consumers




• Average area under off-season vegetable production per farmer is less than 20 nalis/ farmer (50

nalis = 1 ha.), as this is one of the criteria of CHIRAG to select farmers with less land holdings.



• In the CHIRAG marketing system, farmer’s responsibility is limited to grading, weighing and loading

(dhulan).

• Post harvest management is the major problem faced by farmers due to rainy season.

• Farmers are mostly not aware of the grading practice to be followed and they send produce to other

buyers (other than CHIRAG) as CHIRAG only procures graded produce.

• In case of cabbage and cauliflower, CHIRAG gives rates on the basis of weight while traders in

Haldwani mandi gives rates on the basis of packing unit (Gunny bag) to the farmers.

• Accessibility to collection centre and absence of complete procurement of produce i.e. whole lot by

CHIRAG are few drawbacks which farmers’ pointed out.

• Farmers mainly do cultivation of apricot, plum and peach fruits besides off season vegetables in the

region.

4.4.2. F&V Marketing Samiti

F&V Marketing Samiti comprise of President, Secretary and members from cluster, there are around 7

clusters (10-20 farmers per cluster) in the Farmer’s Samiti. These clusters makes formal representation for

effective dissemination of information pertaining to post harvest management to marketing aspects of the

produce.

The secretary of the Samiti provides services of F&V collection centre and he charges 2 % for this from

farmers. Further to this the Samiti charges 7 % as rent for collection centre, grading of the produce, packing,

loading (lodai), inspection services.

The samiti also performs the function of documentation, demand-supply assessment, payments made to

farmers and display of marketing rates and information pertaining to products at the collection centre.

4.4.3. Aggregator and Marketing Support Unit (CHIRAG)

CHIRAG is an NGO working as marketing support unit to Fruit & Vegetables Marketing Samitis to provide a

forward linkage to these Samitis by linking them to different markets and deduct transportation cost (to

Haldwani), loading (Rs.2 per unit) and unloading (Rs.2 per unit) cost and service charges (4 % around).

While another sister concern of CHIRAG is Kuamon Gram Udyog (KGU), which is section 25 company and

which operates for the procurement of cereals and pulses as marketing support unit.

In F&V, CHIRAG has initiated the programme in 20 villages across the project areas of Kashiyalek (9

villages) , Reetha (6 villages), Suyalbari (4 villages) , Naukuchiyatal (1 villages) and 1 federation in district of

Bagehwar.

Following are the services provided by CHIRAG

1. Advise/Training in Sustainable Agriculture

• Improving soil health through organic methods (compost with bio-inoculants)

• Improving the quality of planting material (seed treatment and improved nursery raising)

• Organic pest and disease control through minimal external inputs

• Agricultural extension on practices

2. Through Samitis provides day today pricing pattern to farmer.

3. Provide appropriate packing material and weighing facilties.

4. Help farmer to bring duly graded and packed produce for marketing.

5. Arranging competitive transport facilities for final destinations.

6. Through continuous follow-up with buyers, obtain most competitive prices.

7. Keeping a close watch on declaration of quality assessment parameters by various

mandies/retailers to reduce the rejectable quantity.

8. Distribute the cost of material to farmer within designated period irrespective of collection of

same from the mandi/retailer, etc.

9. Collect the final sale price to be accounted by Chirag.

10. Organising small and marginal women farmers into collective marketing

11. Reducing marketing expenses through collective action.

12. Collective input supply like seeds, organic fertilizers, pesticides etc.

13. Promoting non-pesticidal management.

Marketing support unit of CHIRAG declares rates of F&V three days in advance based upon prevailing

market rates of Haldwani mandi. They also prepares database on expected production (month wise, variety

wise), weekly break up. The NGO holds mandi tax licence. They also declared grading specifications to the

farmers. CHIRAG pays the amount to women farmers and also maintains proper documentation of all the

records. Before the produce is ready for market, they do pre market survey and collect information about

prices by personnel visit (taking samples) to organized retail centres such as Big Bazaar, Spencer, Aditya

Birla etc. They also have contacts with traders at Azadpur Mandi (Wholesale mandi in Delhi) for price

discovery. They sent A and B grade produce to organized retails and wholesale mandi (Delhi) and C grade

to Haldwani mandi. CHIRAG gives payment to the farmers after 15 days interval.

4.4.4. Transporters

Transporters act as one of the main link between production area and market. Transportation is mainly done

at two levels:

• Produce loaded on animal (av. Charges @ Rs. 40-50/ 80 kg produce)

• Since the production is scattered and volumes are low, transportation is done by CHIRAG from

various collection points through truck load. The truck moves around 50-60 km area for

collection of produce.

Because of low volume of off-season vegetables, truck load couldn’t able to utilize full space which leads to

high transportation cost (death freight).

4.4.5. Wholesalers

i) Azadpur Mandi, Delhi

CHIRAG have identified few traders in Azadpur mandi, Delhi for sending “A” and “B” grade produce. They

have shortlisted to 3-4 traders who pay good prices to them.

ii) Haldwani Mandi

CHIRAG sends “B” & “C” grade produce to haldwani wholesalers during production time.

4.4.6. Retailers

CHIRAG has tie up with various organized retailers such as Big Bazaar, Spencer, Aditya Birla group, 6to10

etc. The NGO do sorting and grading of produce than supply it to retailers.

4.5

. A

cto

rs a

nd

th

eir

Fu

nc

tio

ns

K

INP

UT

SP

RO

DU

CT

ION

PO

ST

HA

RV

ES

TT

RA

NS

PO

RT

TR

AD

EM

AR

KE

TIN

GC

ON

SU

MP

TIO

N

Cit

y

Co

nsu

me

rs

Fa

rme

rs

Ho

rtic

ult

ure

De

pa

rtm

en

t

(Pu

bli

c

sect

or)

A C T O R S

Ho

tels

an

d

Re

sta

ura

nts

F&

V

Ma

rke

tin

g

Sa

mit

i

Inp

ut

Se

rvic

e

Pro

vid

er

Bu

yin

g

pro

du

ce f

or

con

sum

pti

on

Loa

din

g

Un

loa

din

g

Tra

nsp

ort

Sto

rag

e

Gra

din

g

So

rtin

g

Pa

ckin

g

Lan

d

pre

pa

rati

on

So

win

g

Sp

ray

ing

Ha

rve

stin

g

Su

pp

ly o

f

see

ds,

pe

stic

ide

s a

nd

fert

iliz

ers

A C T I V I T I E S

Fa

rme

rs

(An

ima

l

Ca

rt)

Wh

ole

sale

Ma

nd

i

(De

lhi)

Sto

rin

g

So

rtin

g

Bu

yin

g +

Se

llin

g

CH

IRA

G

(Tru

ck)

CH

IRA

G

De

ma

nd

-Su

pp

ly

Ne

two

rkin

g

Pa

yme

nts

Ra

tes

Info

rma

tio

n

Do

cum

en

tati

on

Tra

nsp

ort

Org

an

ize

d

Re

tail


Various marketing cost components in the value chain of OSV revealed that highest marketing cost incurred

in pea (Table 14).

Table14. Various marketing cost components in the value chain of off-season vegetables (For “A”

grade produce upto wholesale level)


Bean

Tomato Capsicum

Transportation

A) Transportation

cost (on animal cart

Rs./kg)

0.56 0.56 0.56 0.56 0.56 0.56

B) Transportation

cost (charged from

farmer upto Haldwani

Rs./kg)

0.50 0.50 0.50 0.50 0.50 0.50

C) Transportation

cost – From

collection centres to

wholesale level (Delhi

Mandi) born by

CHIRAG (Rs./Kg)

2.75 2.75 2.75 2.75 2.75 2.75

Actual

Transportation Cost

upto Wholesale

level (Delhi) (Rs. /

Kg) (A+C – B)

2.81 2.81 2.81 2.81 2.81 2.81

Secretary, F&V

Marketing Samiti @

2.00 % (Rs./kg) –

Rent charges for

collection centre

0.85 0.17 0.56 0.40 0.40 0.50

F&V Marketing Samiti

@ 5.00 % (Rs./kg) –

For grading, packing,

weighing operations

2.13 0.43 1.40 1.00 1.00 1.25

CHIRAG Charges

Service charges @ 4

%

1.70 0.34 1.12 0.80 0.80 1.00

Rs.4 per packing unit 0.09 0.20 0.18 0.08 0.22 0.24

(For loading and

Unloading)

Post harvest losses


0.00 0.00 0.00 0.00 0.00 0.00

Post harvest losses

at wholesale level

(Delhi Mandi’s (Rs./

kg) @ 5 %

2.13 0.43 1.40 1.00 1.00 1.25

Commission rate



based upon

wholesale level

prices

2.98 0.60 1.96 1.40 1.40 1.75

Total Marketing

Cost (Rs./Kg,)

12.69 4.98 9.43 7.49 7.63 8.80

4.7. Structure marketing margin between farmers and wholesale level (Delhi Mandi) (Table ).

Within the marketing cost, the share of transportation, charges by F&V Marketing Samiti (for storage, sorting,

grading operations), charges by CHIRAG (service charges and loading, unloading charges for wholesale

level), wastages at wholesale level and commission rate charged to farmer was analysed for wholesale level

(Table ). In all the cases, transportation cost (highest in Cabbage @ 56.43 % of the total marketing cost)

contributes most to the total marketing cost this was followed by service of sorting, grading, weighing,

storage offered by F&V marketing samiti and commission rate charged at wholesale level contributes mostly

to the total marketing cost.

In case of transportation, land is fragmented and at lower level than roadside in most of the cases. Farmers

have to bring their produce at road level through animals (produce loaded on animals) and for transportation

from road upto wholesale level charges remains same whether volume of produce is there or not. Therefore

per kg transportation charges remained high, as previously mentioned this is known as Death Freight by

CHIRAG because of high marketing cost due to transportation.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Commission at wholesale

level

Wastage at wholesale level

CHIRAG

F&V Marketing Samiti

Transportation

4.8

. P

rice M

ap

pin

g f

or

Off

-seaso

n v

eg

eta

ble

s u

nd

er

CH

IRA

G m

od

el (F

rom

Farm

er’

s F

ield

to

Wh

ole

sa

le lev

el (D

elh

i M

an

di)

CR

OP

Pea

P

rice R

eceiv

ed

(Rs./K

g.)

30.3

1

2.9

8

2.8

1

42.5

0

S

hare

of

en

d

pri

ce (

%)

71.3

2

7.0

1

6.6

1

15.0

6

Cabb

age

P

rice R

eceiv

ed

(Rs./K

g.)

4.7

0

0.6

0

2.8

1

8.5

0

S

hare

of

en

d

pri

ce (

%)

55.2

9

7.0

6

33.0

6

4.5

9

Caulif

low

er

Price R

eceiv

ed

(Rs./K

g.)

19.3

9

1.9

6

2.8

1

28.0

0

S

hare

of

en

d

pri

ce (

%)

69.2

5

7.0

0

10.0

4

13.7

1

Fre

nch B

ean

P

rice R

eceiv

ed

(Rs./K

g.)

12.4

6

1.4

0

2.8

1

20.0

0

S

hare

of

en

d

pri

ce (

%)

62.3

0

7.0

0

14.0

5

16.6

5

Tom

ato

P

rice R

eceiv

ed

(Rs./K

g.)

13.7

7

1.4

0

2.8

1

20.0

0

S

hare

of

en

d

pri

ce (

%)

68.8

5

7.0

0

14.0

5

10.1

0

Capsic

um

P

rice R

eceiv

ed

(Rs./K

g.)

16.2

3

1.7

5

2.8

1

25.0

0

S

hare

of

en

d

64.9

2

7.0

0

11.2

4

16.8

4

FA

RM

ER

SO

RT

ING

, G

RA

DIN

G,

PA

CK

ING

TR

AN

SP

OR

TW

HO

LES

ALE

pri

ce (

%)

Price r

ece

ived b

y f

arm

er’s a

fter

deduction

of

inp

ut cost, T

ransport

atio

n C

ost (A

nim

al cart

) and c

om

mis

sio

n c

harg

ed a

t w

ho

lesa

le le

ve

l (7

%)

an

d f

or

serv

ices r

en

de

red b

y F

&V

Mark

eting S

am

iti an

d C

HIR

AG

is h

igh

est in

pea (

71

.32

%)

and lo

west in

cabb

ag

e (

55.2

9%

).

4.9. SWOT Analysis – CHIRAG Model

Strength: The model runs on cluster basis (through F&V marketing samitis) where farmers are the members

and extension services provided by CHIRAG in terms of post harvest management practices to be followed

(grading, sorting as per market requirement) and price discovery of different off season vegetables through

display of rates and demand-supply assessment in advance to the farmers. The NGO acts as an aggregator

and marketing support unit for F&V procurement from the farmers and linked farmers to wholesale markets

(Delhi) and organized retailers for getting better prices. The NGO pays farmers income to female members

and also maintains complete documentation w.r.t. production, procurement quantity, prices, market

information related aspects.

Weakness: The NGO only procures “A” grade produce which comprises around 30-40 % of the total

production of the farmers. The NGO pay prices to the farmers based upon the prevailing market rates of

Haldwani mandi and Delhi mandi while they do marketing upto the level of organized retailers. High

transportation cost (death freight) is one of the main drawback in the region as volume of procurement of “A”

grade produce is low while charges for truckload remains same.

Opportunity: More and more numbers of farmers could be associated with F&V marketing samitis and

CHIRAG. This will increase the volume of the produce and due to various extension services offered by

CHIRAG; quality of the produce (more and more conversion of “B” and “C” grade to “A” grade produce) could

also be improved. There is need to strengthen the F&V marketing samitis and role of farmers in the samitis.

Dissemination of market information to farmers of prices of “A” grade produce sent to organized retailers

could further improve farmer’s profit margin. Also crop insurance practices are already followed in the region

in apple and potato, this could be further enhanced to off-season vegetables grown in the region.

Threat: Viability of the model to run on sustainable basis in the absence of NGO (CHIRAG) is doubtful. In

the past also, in the absence of NGO, functioning of samitis crippled and only two samitis were managed to

run independently out of 12 samitis.

j. Value Chain Analysis for different Off-Season Vegetables of Lamagara and Dhauladave

Blocks of district Almora of Uttrakhand (ULIP, Almora Model)


Off season vegetable production is one of the sub-sector identified under Uttrakhand Livelihood

Improvement Project of Govt. Of Uttrakhand where main focus is given on supporting input facilities

(provision of quality seeds, polyhouse cultivation, availability of irrigation facilities etc) to farmers for better

production of OSV. The OSV project is being run by NGOs (RICE and GRASS) in Naini and Motiabatha

cluster.

Figure 23. Ajeevika programme

Blocks Covered: Lamagara and Dhauladave Blocks

No. Of villages: 15

Markets: Local consumption, Almora, Haldwani


S.No

.

Particulars Crops


Bean

Tomato Capsicum

Av. no. of

farmers

involved in Off-

Season

Vegetable

Cultivation

175 350 170 200

Av. Land

devoted to off-

season (nalis

per crop)

7 7 6 7

Ha./crop 24.50 49.00 20.40 28.00

Av. Yield

(t/ha.)

7.00 8.54 5.16 9.40

Production

volume (t)

171.50 418.46 105.226 263.20

Harvesting

time

July -

August

July -

August

July -

August

July -

August

Hybrid /

Improved

variety

Arkel Krishna,

Varun,

Anupama Himsona

Post harvest

operations

followed

At farm level - - - -

At wholesale

level

- - - Grading

(A, B, C)

Post harvest

losses (%)

At farm level - - - - -

At wholesale

level

5 5 5 5 -

Post harvest

losses reason

Moistur

e loss,

Fungal

rot

during

rains

- Moisture

loss

Moisture

loss

-

Packing Gunny

Bag

(light

material

)

Jute Bag Jute Bag Wooden

box

-

Packing

capacity (Kg)/

unit

23.00 30.00 35.00 20 .00 -

Table 15 showed production volume of OSV in the region. Pea, cabbage, French bean and tomato are the

main crops under ULIPS, Almora programme.

5.2

. O

ff-s

ea

son

ve

ge

tab

les

va

lue

ch

ain

ma

pp

ing

INP

UT

SP

RO

DU

CT

ION

TR

AD

EM

AR

KE

TIN

GC

ON

SU

MP

TIO

N

Cre

dit

Inst

itu

tio

ns

(Kis

an

Cre

dit

Ca

rd,

Ba

nk

s)

Off

-se

aso

n

veg

eta

ble

farm

ers

Loca

l

Tra

de

rs

&

Dir

ect

ly b

y

farm

ers

(ve

ry f

ew

)

Loca

l m

ark

et

Alm

ora

Ma

rke

t

Ha

ldw

an

i

Ma

nd

i

Co

nsu

me

rs

VC

Su

pp

ort

er

VC

Op

era

tor

In

form

al b

usi

ne

ss r

ela

tio

n (

Pro

du

ct)

In

form

al b

usi

ne

ss r

ela

tio

n (

Info

rma

tio

n)

Tra

de

rs

5.3. Marketing Channel Followed

Farmers → Local Traders →Wholesalers →Retailers → Consumers

Farmers → Local Traders → Retailers → Consumers




• Average area under off-season vegetable production per farmer is around 6-7 nalis/ farmer (50 nalis

= 1 ha.).



• Farmers are not doing any primary post harvest operations.

• Lack of irrigation facility is the main drawback in production of off season vegetables.

• Transportation cost of produce is high.

• Farmers mainly do cultivation of potato besides off season vegetables in the region.

5.4.2. Local Traders

He is the main link between farmers and traders in Haldwani and Almora. They charges Rs.2/ packing unit

and per cent commission on selling of produce.

5.4.3 Transporters

Transporters act as one of the main link between production area and market. Transportation is mainly done

at two levels:

• Produce loaded on animal (av. Charges @ Rs. 100/ 100 kg produce)

• Since the production is scattered and volumes are low, transportation is done by Jeeps and

when volumes are high than by trucks (av. Charges @ Rs. 40 per 100 kg produce).

5.4.4. Wholesalers

Farmers sends produce to haldwani wholesalers during production time through local traders.

5.4.5. Retailers

Retailers are present at three levels:

i) Local market consumption (around 10 km from production area)

ii) Almora market (around 70 km from production area)

iii) Haldwani market

The interventions by NGOs in the off season vegetables under ULIPS, Almora programme is at nascent

stage and focus is mainly on providing input services such as polyhouse facilities, irrigation facilities, seed

production activities etc. The production is scattered but potential is good for off season vegetable

production. High transportation cost and presence of traders (some farmers are under debt of these traders)

in the value chain are the main bottlenecks. Local markets and Almora market provides good marketing

platform for off season vegetables in the region that holds promising future markets besides tie-up with

organized retailers for getting better prices to farmers.

CHAPTER 4: CONSTRAINTS/ OPPORTUNITIES AND CONCLUSION

I. Constraints

Different models of off-season vegetables are being operated differently by various stakeholders (NGOs,

entrepreneur, Govt.) and have different markets. One of the production constraints in most of the models

is low volume of production of OSV due to poor availability of quality inputs, lack of irrigation facility,

climatic vagaries (drought/ heavy rainfall/ hail storms), pests and disease problems etc. In case of

marketing costs, transportation cost is one of the main constraints that increases the total marketing cost

in most of the models, while in some models, commission rate charged at various levels from production to

marketing adds up to high marketing cost. Most of the farmers in the models are not aware of the

importance of sorting and grading operations. Where farmers are doing grading, they are getting better

prices but not comparable to organized retail markets. Lack of market information amongst farmers is also

one of the main constraints in the value chain of OSV. Farmers are not aware of the prices of the produce in

other wholesale market (other than state) and at organized retail level. In terms of OSV, pea and capsicum

are the two main crops where farmer’s shares in end prices are low.

II. Opportunities

Since most of the region is good for off-season vegetables production, improving the farmer’s awareness

level regarding varieties, scientific crop management practices, and primary processing practices could

improve the production of OSV and reduce the wastage of OSV produce. Pea and capsicum are two OSV

which could fetch higher prices in the market; therefore there is a need to improve the production of these

two crops during OSV production time. Proper systems need to be developed to reduce the transportation

cost to minimum. Existence of Farmers Interest Groups/ Farmer’s Federation/ F&V Marketing Samiti could

provide opportunity to strengthen the farmer’s group and converted into producer company/ federation/

cooperative so that farmers could be the main beneficiary in the entire value chain and they could get

better prices of their produce. In some of the models, farmers are directly/ indirectly connected to the

retailers/ organized retailers, this will pave the way for better returns to the farmers in the long run if

farmers produce uniform quality and graded OSV. The operator of these models should act as facilitators of

the model so that win-win situation could be there for the farmer and the operator.

III. Conclusion

The study on OSV value chain in the region reveals that OSV are the potential source of income to the

farmers. Although there are production and marketing constraints in the OSV, great demand of these

vegetables in the plains makes it a better choice. Each model of the OSV in the region has its own strength

and weaknesses, there is a need to ascertain the best system of production and marketing that could fulfils

the gaps in the value chain of the OSV in the region.

IV. APPENDICES

List of Interviewees

S.No. Name Particulars Contact details

1 Mr. Pankaj Kumar

Sr. Project Manager, CHEA, Nainital 09412034374

2 Mr. Pratap Singh

Nagarkoti

Project Manager, CHEA, Nainital 09411198873

3 Harish Chand

Bhadani

Farmer, Dhari Block, Nainital

09758345426

4 Lalit Mohan Sharma


09557664616

5 Dinesh Chand


6 Prakash Chander


7 Shyam Lal


8 Dewan Ram


9 Santosh Kumar


10 Devender Chand

Aggregator/ Village level Commission Agent,

Dhari Block

11 Ghanshyam &

Company

Trader at Bhowali Market

05942-220052;

09412085052

12 Shailesh CHIRAG, Simayal 09917581231

13 Vijay CHIRAG, Simayal 09412348432

14 Mahender Singh Secretary, F&V Marketing Samiti, Simayal 09837686158

15 Om Prakash Pandey Member, CHIRAG, Suyalbari 09412943579

16 Mahesh Chand Bhatt Farmer, Suyalbari 09411300011

17 Govind Singh Bist Secretary, F&V Marketing Samiti, Suyalbari 09758916873

18 Pratap Singh Farmer, Shama, Bageshwar 09411327518

19 Mohan Singh

Karonga

Secretary, Shama Federation, Bageshwar 09458603473

20 Kunwar Singh Farmer, Shama, Bageshwar 09410920829

21 Lokpal Karonga Farmer, Liti, Bageshwar 09458342005

22 Harish Chandra Singh Farmer, Liti, Bageshwar

23 Shyam Singh Farmer, Liti, Bageshwar

24 Khem Ram Arya Horticulture Department, Shama, Bageshwar 09410163646

25 Yashpal Singh Ex-Secretary, Shama Fed., Bageshwar 05963-223546

26 Harish Chander

Bhadani

Farmer, Paharpani 09758345426

27 Riyas Ahmed Manager, ULIPS, Almora 09412162034

28 Mangal Singh Rawat Group Coordinator, ULIPs, Almora 09456723314

29 Gopal Bisht Block Coordinator, ULIPs, Almora 09410159129

30 Dr. Suresh Matwal Manager, Technical Services, ULIPs, Almora 09412094613

31 Dheeraj Singh

Nigaltiya

Farmer, Niglat 09758078545

32 Bhuwan Pandey Farmer, Niglat

33 Lali Mehra Farmer, Niglat

34 Deewan Singh

Mehra

Farmer, Niglat

35 Govind Ram B-47, Trader, Haldwani Mandi 09259440345

36 Pramod Kumar Pant C-44, Trader, Haldwani Mandi

37 Tarun B-49, Trader, Haldwani Mandi

38 Ram Chander Packer, Haldwani Mandi 09369044030

39 Rajender Prasad

Sharma

Surveyor, APMC, Haldwani

40 Suri Roadlines Transporter, Haldwani 09837066204

41 Jagdamba Transporter, Haldwani 09837206830

final report

Documents

danpur krishak

post harvest

informal business

post harvest

post harvest

kisan credit

post harvest

structure