livelihood based agri business and market studies for ... livelihood study repor of nagaland... ·...

Livelihood Based Agri Business and Market

Studies for North East Rural Livelihood

Project

Final report

Nagaland

April 2011

Submitted by

MART

A-32, 1st Floor,

Sector 17, Noida - 201 301 Tel: 0120-2512140, Fax: 0120-4273995

www.martrural.com

Livelihood based Agri Business and Market Study in Nagaland

MART, Noida

Acknowledgement

We are honoured to be part of this livelihood study under North East Rural Livelihood Project (NERLP)

and extend our heartfelt thanks to Ministry of Development of North Eastern Region (MDoNER) for

giving us this opportunity.

We sincerely thank Mr. Alok Kumar Shrivastava, IAS, Project Director, NERLP and his team at Guwahati

for their constant guidance and unconditional support during the study period. The meetings with him

and his team at Guwahati and Delhi helped in smooth completion of the assignment. Thanks are also due

for the crucial support in conducting the stakeholders’ workshops in Nagaland. We appreciate their efforts

in painstaking scrutiny of the draft report and feedback that helped improve the report suitably.

We thank Mr. Biswajit Sen, Senior Rural Development Specialist and Mr. Nathan M. Belete, Senior Rural

Development Economist at World Bank for their constant support along with the critical observations and

inputs. Their proactive assistance ensured timely finalisation of the study report templates and selection

of economic activities for value chain analysis. We would also like to thank Mr. Varun Singh, Social

Development Specialist at World Bank and Dr. Amarendra Singh for their valuable feedback on the study.

We are thankful to all the senior officers of Government of Nagaland for sparing their time and sharing

their valuable thoughts with the study team. Special mention should be made of Shri H. K. Khulu,

Agriculture Productivity Commissioner, Smt. Thangi Mannen, Commissioner, Veterinary & Animal

Husbandry, Mr. Sentiyanger Imchen, Commissioner, Horticulture and Shri Imkonglemba, Commissioner,

Industries for arranging meeting with their respective department officials. We thank all the officers of the

departments of agriculture, horticulture, veterinary & animal husbandry and the various research stations

for their invaluable contribution to this study.

We are expressing our gratitude to Shri I. Himato Zhimomi, Commissioner, Planning & Coordination,

Government of Nagaland for his support and involvement in this study. This report would not have seen

the light of the day without his efforts. Our thanks are also for Shri Tajenyuba and Shri Lipoktoshi, Nodal

Officers in the APC Cell, who have not only assisted by coordinating our visits in Nagaland.

Special thanks are also due to Shri Raj K Verma, Additional Secretary to the Government of Nagaland who

despite of his official duties found time to guide our team in all professional and personal matters. This

study was enriched by Shri Verma’s deep understanding of the socio-economic conditions of Nagaland.

We also thank Shri Chingmak Kejong, Secretary, ECS, Tuensang for his support in ensuring mobility in

Tuensang and providing a holistic overview of the socio-cultural and economic situation in Nagaland.

We sincerely thank all the stakeholders who spared their valuable time to provide us important

information and relevant documents. We particularly thank all the stakeholders present in the two highly

informative and fruitful workshops conducted in Kohima for their invaluable contributions and feedback

in guiding and finalizing the study. Last but not the least our heartfelt appreciation to villagers, SHG

members, entrepreneurs, market players, wholesalers and retailers, processing units who spared their

valuable time and shared invaluable information to provide credibility to the research.

We may be excused for not thanking each person by name due to paucity of space.

MART Team


MART, Noida

Contents Abbreviations ....................................................................................................................... A Executive Summary .............................................................................................................. B Chapter 1: Background and Methodology ............................................................................. 1

1.1 Background ....................................................................................................................................... 1 1.2 Objectives of the study ..................................................................................................................... 1 1.3 Approach of the study ...................................................................................................................... 2 1.4 Key features of study methodology ................................................................................................. 3 1.5 Limitations of the study ................................................................................................................... 4

Chapter 2: State Profile and Livelihood Issues ..................................................................... 6 2.1 State profile ....................................................................................................................................... 6

2.1.1 Geography: ........................................................................................................................ 6 2.1.2 Demography: .................................................................................................................... 9 2.1.3 Economy: .......................................................................................................................... 9

Chapter 3: Livelihood Profile ............................................................................................. 10 3.1 Demography of study villages ........................................................................................................ 10

3.1.1 Poverty Scenario in Study Villages ................................................................................ 10 3.2 Existing infrastructure and support services ................................................................................ 11 3.3 Credit Scenario ............................................................................................................................... 13

3.3.1 Status of SHGs ............................................................................................................... 13 3.4 Markets and business practices..................................................................................................... 13 3.5 Agriculture ...................................................................................................................................... 15

3.5.1 Land holding pattern and use rights:............................................................................ 19 3.7 Animal Husbandry ........................................................................................................................ 20 3.8 Non Timber Forest Produce .......................................................................................................... 21 3.9 Service based Livelihoods .............................................................................................................. 22 3.10 Skill Profile ................................................................................................................................... 23

Chapter 4: Value Chain Analysis ........................................................................................ 24 4.1 Selection of Activities ..................................................................................................................... 24 4.2 Summary of suggested interventions .................................................................................... 25 4.3 Maize cultivation Value Chain .......................................................................................................28

Production clusters ................................................................................................................. 29 Production Practices and Technology ................................................................................... 29 Value chain map .................................................................................................................... 30 Possibility of setting up processing unit ................................................................................ 31 Stakeholders: Roles & Functions ........................................................................................... 31 Proposed interventions .......................................................................................................... 33 Technical feasibility ................................................................................................................ 34 Market feasibility .................................................................................................................... 34 Economic feasibility ............................................................................................................... 34 Proposed strategy and Implementation plan ........................................................................ 34 Implementation plan for maize cultivation ........................................................................... 37 Possibility for Partnership for Maize Cultivation .................................................................38

4.4 Potato cultivation Value Chain ...................................................................................................... 39 Production clusters ................................................................................................................. 39 Production Practices and Technology ................................................................................... 39 Value chain map .................................................................................................................... 40 Possibility of setting up processing unit ............................................................................... 40 Stakeholders: Roles & Functions ........................................................................................... 41 Proposed interventions .......................................................................................................... 42 Technical feasibility ................................................................................................................ 42 Market feasibility .................................................................................................................... 42 Economic feasibility ............................................................................................................... 43


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Proposed strategy and Implementation plan ........................................................................ 43 Economics of potato cultivation ............................................................................................ 43 Constraints-Solution Matrix .................................................................................................. 44 Implementation plan for potato cultivation .......................................................................... 45 Possibility for Partnership for Potato Cultivation ................................................................ 47

4.5 Soybean cultivation Value Chain .................................................................................................. 48 Production clusters ................................................................................................................ 48 Major usage and by Products ................................................................................................. 49 Value chain map ..................................................................................................................... 49 Possibility of setting up processing unit ................................................................................ 50 Stakeholders: Roles & Functions ........................................................................................... 50 Proposed interventions .......................................................................................................... 51 Technical feasibility ................................................................................................................ 51 Market feasibility .................................................................................................................... 51 Economic feasibility ............................................................................................................... 52 Proposed strategy and Implementation plan ........................................................................ 52 Economics of Soybean cultivation ......................................................................................... 52 Constraints-Solution Matrix .................................................................................................. 53 Implementation plan for soybean cultivation ....................................................................... 54 Possibility for Partnership for Soybean Cultivation ............................................................. 56

4.6 Pig rearing Value Chain ................................................................................................................. 57 Technical Feasibility ............................................................................................................... 57 Market Feasibility ................................................................................................................... 57 Economic feasibility ............................................................................................................... 57 Rearing Process in villages of Nagaland ................................................................................ 58 Value Chain ............................................................................................................................. 58 Possibility of setting up processing unit ................................................................................ 59 Stakeholders: Roles & Functions ........................................................................................... 59 Proposed Interventions ......................................................................................................... 60 Constraints-Solution Matrix ................................................................................................. 60 Implementation Plan for pig rearing ..................................................................................... 61 Possibility for Partnership for Pig Rearing ........................................................................... 62 Economics of Pig rearing ........................................................................................................ 63

4.7 Backyard Poultry ............................................................................................................................ 65 Technical Feasibility ............................................................................................................... 65 Market Feasibility ................................................................................................................... 65 Stakeholders and their roles and functions ........................................................................... 66 Gaps, Issues and Constrains in the Value Chain ................................................................... 66 Range of critical interventions ............................................................................................... 66 Implementation Plan to carry out the interventions ............................................................ 67 Possibility for Partnership for Backyard Poultry ................................................................. 68 Economics of Backyard Poultry Farming ............................................................................. 68

List of secondary sources/ References .................................................................................. i Annexure: I - Stakeholders consulted .................................................................................. ii Annexure: II - Stakeholders’ Consultation Report ............................................................... v Annexure–1: Scan copy of attendance sheet of stakeholders’ consultation workshop ......... 7 Annexure–2: Copy of slides presented in the stakeholders’ consultation workshop ............ 8


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List of Tables

Table-1: Comparative population profile of project districts and Nagaland………………………… 9

Table-2: Demography of study villages………………………….………………………….……………. 10

Table-3: Select goods movement routes in Nagaland……………………………………………………….. 11

Table-4: Infrastructure availability in Peren and Tuensang………………………………………………. 12

Table-5: SHGs in Peren and Tuensang district………………………………………………………………… 13

Table-6: Prevalent cropping system in Nagaland……………………………………………………………… 15

Table-7: Cultivation status of crops in the study villages…………………………………………………… 15

Table-8: Availability of agri-produce in the study villages…………………………………………………. 17

Table-9: Status of livestock rearing in the study villages………………………………………………….. 20

Table-10: NTFP collection and consumption pattern in the study villages…………………………. 21

Table-11: Availability of NTFP……………………………………………………………………………………….. 22

Table-12: Service based livelihood scenario……………………………………………………………………… 22

Table-13: Status of skills………………………………………………………………………………………………… 23

Table-14: Summary of suggested interventions……………………………………………………………….. 25

Table-15: Economics of maize cultivation……………………………………………………………………….. 35

Table-15 A: Economics for maize cultivation – Sensitivity Analysis………..………………………….. 35

Table-16: Constrains-Solution Matrix for Maize cultivation …………………………………………….. 35

Table-17: Implementation plan for Maize cultivation………………………………………………………. 37

Table-18: Economics for potato cultivation ……………………………………………………………………. 43

Table-18 A: Economics for potato cultivation – Sensitivity Analysis………..………………………….. 44

Table-19: Constraint-Solution Matrix for potato cultivation…………………………………………….. 44

Table-20: Implementation plan for potato cultivation…………………………………………………….. 45

Table-21: Economics for soybean cultivation………………………………………………………………….. 52

Table-21 A: Economics for soybean cultivation – Sensitivity Analysis………..……………………... 53

Table-22: Constraints-Solution Matrix for soybean cultivation………………………………………… 53

Table-23: Implementation plan for soybean cultivation…………………………………………………… 54

Table-24: Assumptions for pig rearing…………………………………………………………………………… 58

Table-25: Constraints-Solution Matrix for pig rearing……………………………………………………… 60

Table-26: Implementation Plan for pig rearing……………………………………………………………….. 61

Table-27 A: Economics for pig rearing – Capital Expenditure………………………………………….. 63

Table-27 B: Economics for pig rearing – Recurring Expenditure………………………………………. 63

Table-27 C: Economics for pig rearing – Income and Profits……………………………………………. 64

Table-27 D: Economics for pig rearing – Sensitivity Analysis…………………………………….…….. 64

Table-28: Gaps, Issues and Constraints in backyard poultry value chain…………………………… 66

Table-29: Range of critical interventions for backyard poultry value chain……………………….. 66


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Table-30: Implementation plan for backyard poultry value chain…………………………………….. 67

Table-31 A: Economics for backyard poultry – Capital Expenditure……………………………….… 68

Table-31 B: Economics for backyard poultry – Recurring Expenditure………………………..…… 69

Table-31 C: Economics for backyard poultry – Income and Profits………………………………..… 69

Table-31 D: Economics for backyard poultry – Sensitivity Analysis…………………………………..

69

List of figures

Figure-1: Livelihoods study approach…………………………………………………………………….. 2

Figure-2: GIS map of Nagaland……………………………………………………………………………... 7

Figure-3: GIS map of Peren…………………………………………………………………………………... 8

Figure-4: GIS map of Tuensang…………………………………………………………………………….. 8

Figure-5: Process for Selection of activities…………………………………………………………….. 24

Figure-6: Maize value chain map………………………………………………………..……………….… 30

Figure-7: Potato value chain map………………………………………………………………………….. 40

Figure-8: Soybean value chain map……………………………………………………………………….. 49

Figure-9: Piggery value chain map…………………………………………………………………………. 59

List of boxes

Box-1: 3 M Model………………………………………………………………..……………………………….. 3

Box-2: Glimpse from Poor Household…………………………………………………………………... 11


A MART, Noida

Abbreviations APC Agriculture Production Commissioner

APRLP Andhra Pradesh Rural Livelihood Project

ASSOCHAM The Associated Chambers of Commerce and Industry of India

ATMA Agriculture Technology Management Agency

CARI Central Avian Research Institute

CAGR Compound Annual Growth Rate

DoNER Ministry of Development for North Eastern Region

FGD Focus Group Discussion

GoI Government of India

Kg Kilogram

Km Kilometre

MDoNER Ministry of Development for North Eastern Region

MoEF Ministry of Environment & Forests

MOP Muriate of Potash

MoU Memorandum of Understanding

MPDPIP Madhya Pradesh District Poverty Initiatives Project

MT Metric Tonne

NEC North East Council

NEDFI North Eastern Development Finance Corporation

NERCORMP North Eastern Region Community Resource Management Project

NERLP North East Rural Livelihood Project

NGO Non-Government Organisation

NREGA National Rural Employment Guarantee Act

NREGS National Rural Employment Guarantee Scheme

NSDP Net State Domestic Product

NTFP Non-Timber Forest Produce

OTELP Orissa Tribal Empowerment and Livelihood Programme

ROI Return on Investment

Rs Rupees

SARS State Agriculture Research Station

SHG Self Help Group

SSP Single Super Phosphate

USA United States of America

VCA Value Chain Analysis

VO Voluntary Organisation

WORLP West Orissa Rural Livelihood Project


B MART, Noida

Executive Summary The North East Rural Livelihood Project (NERLP) of the Ministry for Development of North Eastern

Region (DoNER), Government of India, aims to address rural poverty in the region. NERLP assumes that

intensive and innovative use of local opportunities can result in enhanced livelihood opportunities and

incomes for rural communities and had commissioned a ‘Livelihood Based Agri Business and Market

study’ in, Mizoram, Nagaland, Sikkim and Tripura. In Nagaland, Peren and Tuensang were the identified

districts for this study. MART, a leading livelihoods and marketing consultancy, conducted the study.

The study objectives were to evaluate livelihoods and opportunities on the basis of infrastructure,

resources and support services and value chain analysis. It covered identification of major livelihood

occupations of the rural community and shortlist major high growth subsectors and commodities for

value chain analysis where the project can intervene to benefit the poor.

MART used 3M approach for the study that looks at the overall livelihood ecosystem incorporating understanding of villagers, market players and enablers to analyse the livelihood scenario in the state. The study followed an 8-step approach involving secondary literature review, stakeholders’ consultation, preliminary field visits, village and market survey, writing draft and final reports after receiving feedback from NERLP and the World Bank. Under the agreed methodology MART covered 10 villages and conducted FGDs and individual interviews with villagers, state and district officials. Market study involved interviews with traders, transporters, and Government and private processing units.

Nagaland is predominantly hilly and all 11 districts are considered as hill districts. The state is marked by

frequent shifts in ecology with change in altitude and alignment of the hills. The state witnesses high

rainfall and suffers from excessive surface runoff. There are no major rivers and only a few perennial

water bodies and this leads to water scarcity especially for irrigation during winter season.

Land ownership is mostly with individuals or the community landholdings; government owns around 7%

of the total land. Forests are also owned majorly by communities or individuals and government’s holding

is around 11% only. Community ownerships of land are of two major types, viz. clan land and village land.

The general location of villages in Nagaland is on top of the hills. This poses a challenge in establishing

proper road connectivity between the villages and the major road in Peren and Tuensang. The roads are

often damaged by landslides and subsidence. The link roads between the villages and the main road are

the most difficult to negotiate and often extend over 5 km.

This study presented a picture of subsistence economy in Nagaland that was sporadically linked to the

mainstream markets. Naga society has a strong social security system that covers all inhabitants.

However, the poor find it difficult to maintain an acceptable standard of living due to severe economic

hardships. During the study, a few poor households were surveyed to understand the socio-economic

struggles faced by them. It was found that the aged, the widowed and the orphans faced the severest

struggles and form the poorest of the poor category. These families suffer as there are no able bodied

member to work in the agriculture fields or collect produce from the forests that form the major source of

livelihoods. The key findings related to various fields of livelihoods are as follows.

All cultivation activities are mostly in kitchen garden and Jhum land. Though farming is done

individually, cluster approach is adopted under jhum with an average Jhum cycle (fallow period) is 9

years in Tuensang and around 15 years in Peren. Agriculture is done in small patches using hand held

equipment like axe, spade etc. Mechanisation is not viable as the agricultural patches are in distant areas

(3-6 Km) and hard to access areas in the hills. The concept of sequential cropping is not prevalent and

farmers are used to taking only one crop in a year. Due to frequent change in the agro-climatic situation

within the state the cultivation season varies widely among villages.


C MART, Noida

Most Naga households are subsistence farmers and grow food for internal consumption only. Sales of

agricultural produce are mostly to meet their immediate cash needs rather than a systemic income

generation. Therefore, extent of marketable surplus for each product is low at the village level. A major

chunk of the agri-produce comes from the home stead (Kitchen) garden. These are mostly vegetables and

fruits which form some part of the saleable items. People don’t calculate the inputs and outputs in

economic terms, and are not able to express the quantities properly against any tangible land

measurement unit. Irrigation and fencing for the cultivation fields are the most urgent requirements as

per the people met in the villages. Low exposure to concept of cash crop leads to low purchasing power

among rural population. Krishi Vigyan Kendras have started functioning in Nagaland over the last 2-3

years only and their effect is still to be felt.

Livestock rearing is a year round activity and as production volume is quite low compared to demand no

seasonal variations are evident. Pigs reared in villages are of mixed breed and pure breeds are almost

impossible to locate and procure for rearing. Villagers buy piglets locally. In Peren, some villagers have

bought pigs from the government facility in Medzhiphema. However, such procurements are rare. Pigs

require a lot of care and consume high volume of feed and water. Most households in the villages find it

difficult to provide for more pigs due to these reasons and can afford to rear 1-2 pigs only. Pigs are

slaughtered by the households itself for self-consumption, mostly during festivals. Sales are rare and take

place only to meet financial exigencies. The households have a system of drying pork and preserving it for

consumption later. Excess pork is sold at the rate of Rs. 120/Kg among the villagers by the households

directly. There is no broiler poultry rearing facility in the study villages. Only local free ranging country

birds are reared by the farmers.

Poultry rearing is an incidental livelihood rather than a planned economic activity in the villages. The

local varieties of country bird are slow growing and don’t put on much weight even after 6 months. Sale of

poultry is not through any standard measure but only by mutual bargain. A bird weighing around 2 Kg is

priced at Rs. 250-300. Open sale of poultry by villagers is also rare.

Cattle rearing are rare in Nagaland. The animals are allowed to roam freely in the forests and not stall fed

like in other parts of India. Cattle are reared mostly for meat and slaughter takes place mostly during

festivals and occasions like marriage, funeral etc.

Nagas depend on their forests to meet their day-to-day requirements. The most prominent dependence is

for food, shelter, water, fuel, fodder, and medicines. Forests are abundant and provide for timber and fuel

wood for the villagers. They also collect varieties of non-timber forest produce (NTFP) from forests. These

NTFP are available almost all round the year and meet a major part of a villager’s food. It is also a source

of cash for the rural households. However, it was found that forest produce are mostly gathered for self-

consumption and sales are considered only if an opportunity exists to sell the items in addition to other

agricultural items. Many times, crabs, fish and small animals are also sold after hunting them from the

forests. The forest produce brought to the market for sale are often premium items (eg. 6 small crabs cost

Rs 100) and cost is often beyond the reach of local buyers. The harvest for most of the NTFPs is possible

throughout the year.

Naga households display high levels of self-sufficiency in their day-to-day life. This necessitates that

members of the household are able to take care of multifarious activities requiring diverse skills. Thus it is

common to find a person in Nagaland with wide ranging skills covering, cultivation, hunting, cooking,

knitting, carpentry, basket weaving, etc. However, all these skills are mostly used for meeting their daily

needs and are seldom put to business use and earn livelihoods. These skills are traditional in nature and

reflect the Naga heritage. There is disconnect among the existing skill sets and the larger market outside

Nagaland as there are very few opportunities for interaction. Further, these artisans are more attuned to

working with traditional machineries and equipment that are low on productivity. For e.g. it was observed


D MART, Noida

during this study that most women in Nagaland know the art of knitting and weaving but none had

exposure to advanced looms like the fly shuttle loom etc. and continued to work on the traditional tension

loom.

Based on the above understanding 5 activities were shortlisted for value chain analysis. The basis for

selection of the activities was wide presence among the villages in the districts of Peren and Tuensang

were only chosen. It was decided during the meeting with the Project Director, NERLP and World Bank

that activities with long gestation period will not be included under value chain analysis in this study.

Further, some lucrative activities mostly based around NTFPs, honey and Ari silk were not considered for

value chain analysis as these activities were not present extensively in the selected study villages. The 5

products selected are maize, potato, soybean, pig and backyard poultry. The proposed investment and

return on the selected activities are presented in the table hereunder.

The interventions are planned at individual and group levels with greater perceived role for SHGs. It is

suggested that the project undertake the following activities towards promotion of the suggested activities.

Organise villagers in SHGs and capacity building of existing SHGs for extending financial support to

cultivators

Training on improved package of practices with special focus on women

Supply of improved variety of seeds for maize, potato and soybean with focus on high yielding local

germplasm.

Supply of improved variety of piglets like Large Black, Hampshire and poultry like Kalinga Brown,

Mumbai Desi, Rhode Island Red, CARI Nirbheek etc.

Introduce collective action for input sourcing and output marketing

Market exposure and linkages with special focus on women

Activity Size of activity suggested

Produce Suggested Unit of activity Capital required

(Rs)

1st Year RoI

(%)

Maize Popularising extensive maize cultivation

using improved agriculture practices

1 acre 5,130 137.66

Potato Popularising extensive potato cultivation

using improved agriculture practices

0.5 acre 17,656 125.08

Soybean Popularising extensive soybean

cultivation using improved agriculture

1 acre 8,340 105.03

Pig Rearing Pig for selling piglets and

fattened pigs for pork

2 Sows and 6

fatteners

124,992 30

Backyard

Poultry

Rearing of poultry birds and selling of

birds and eggs

20 birds 5,936 14


1 MART, Noida

Chapter 1: Background and Methodology

1.1 Background

The North East Rural Livelihood Project (NERLP) of the Ministry for Development of North Eastern

Region (DoNER), Government of India, aims to address rural poverty in the region through creation

of sustainable livelihood for the rural poor, particularly for women. NERLP assumes that intensive

and innovative use of local opportunities can result in enhanced livelihood opportunities and incomes

for rural communities and had commissioned a ‘Livelihood Based Agri Business and Market study’

in, Mizoram, Nagaland, Sikkim and Tripura. In Nagaland, Peren and Tuensang were the identified

districts for this study.

MART, a leading livelihoods and marketing consultancy, was selected to conduct the study. MART

held discussions with DoNER team at New Delhi and signed a MoU. A two-member team was placed

for each state to coordinate the study. MART maintained close coordination with Project Director,

NERLP based at Guwahati to facilitate the study.

1.2 Objectives of the study

The objective of the study is to assess economic opportunities related to farm and non-farm activities

in the project area.

The study evaluates livelihoods and opportunities on the basis of the following two components:

1. Infrastructure, resources and support services covering

Identify major livelihood occupations of the rural community, categorize them according to

geographical, ecological and watershed clusters and assess their viability based on local resources,

infrastructure, support services, technology, policy environment and potential for growth.

Suggest strategies to enhance income and nutritional security from the existing livelihoods through

improved productivity, access to inputs and markets, capacity building, and collective action in

marketing to achieve economies of scale.

Provide guidance in agriculture and horticulture development, changing demand and supply scenario,

projection of future trends to ensure that farmers are able to face the challenge of negotiating on an

equitable basis with market players.

2. Value chain analysis covering

Shortlist major high growth subsectors and commodities for value chain analysis where the project

can intervene to benefit the poor.

Prepare value chain map for key products/commodities/services reflecting economic return at every

stage, product movement from the rural producers to the final consumers.

Identify major players in technology, markets, finance, and inputs contributing to value chain, and

explore partnership possibilities with them.

Identify infrastructure availability and institutional arrangements for input supply and output

marketing.

Identify constraints and institutional obstacles, social process, vulnerabilities and risks hampering

benefits to the poor along the value chain.

Identify critical investment needs in the value chain that can accrue better income to the poor.


2 MART, Noida

Prepare techno economic feasibility guideline for setting up small, viable and sustainable processing

units to impart value addition and longer shelf-life to-farm products.

1.3 Approach of the study

This study was designed to understand the livelihoods options among the rural population especially the

poor. The approach is presented in figure-1.

Activities Key Steps Outputs

Reviewed of project literature and reports

Studied livelihoods initiatives such as NERCORMP in north east states.

Studied secondary reports Met World Bank and Project Director,

NERLP at Delhi to discuss study design

Step 1

Pre study Preparation

Developed better understanding of the study and project states

Finalised study design and plan

Project Director sent intimation to concerned state office regarding field visit for coordination support

Met state nodal officer, rural development department officer at Kohima

Meeting with DRDA and line department officers

Shared study approach and methodology Understand NERLP objectives

Step 2

Initiation meeting at state and district

level

List of key stakeholders finalised for meeting

Feedback on livelihood constraints and opportunities in the state

Finalized approach and methodology

Interacted with key stakeholders from line departments such as agriculture, horticulture, animal husbandry, resource agencies, and key market players

Visited three villages in 2 project districts

Generated list of livelihood activities

Step 3

Fieldwork -1 (Interactions with key stakeholders)

Shortlisted 10-12 major products for promoting in the state and value chain analysis

Prepared list of stakeholders and value chain players and service providers

Finalized plan for Fieldwork-2

Met with World Bank staff and Project Director, NERLP at New Delhi to share fieldwork-1 observations and experience

Discussion to finalise products for taking up value chain analysis

Step 4

Initiation Report

Finalised five products i.e. maize, potato, soybean, pig, and backyard poultry for value chain analysis

Submitted initiation report containing livelihood profile and issues, approach, methodology, and field visit plan

Finalized field visit plans

Placed field teams

Visited 10 villages in two districts and interviewed producers/farmers

Met market players in at Dimapur, Mokokchung and project districts

Met line-department officials

Step 5

Fieldwork -2 (Interactions in

villages and markets)

Completed livelihood survey in villages and markets

Collected information for value chain analysis of 5 products by meeting value chain players

Livelihood analysis

Value chain analysis for 5 products

Data analysis

Report writing

Step 6

Draft Report

Draft report as per study objectives and feedback of World Bank and PD, NERLP

Share draft report though power point presentation to World Bank, DoNER staff and other stakeholders as suggested by the PD, NERLP

Step 7 Stakeholders’ consultation

workshop to share Draft Report

Agreed feedback of stakeholders on the draft report

Content for final report finalized

Stakeholders consultation workshop report

Feedback incorporated from stakeholders consultation workshop report

Step 8 Final Report

Develop final report as per study objectives defined earlier

Figure-1: Livelihoods study approach


3 MART, Noida

1.4 Key features of study methodology

MART coordinated with Director, Ministry of DoNER and Project Director, NERLP, Guwahati for

finalizing study design, study plan, fieldwork and intimation to key stakeholders. Project Director,

NERLP briefed the study team and provided contact details of local resource persons. He also

intimated the Nodal Officer of NERLP in Nagaland for facilitating the field visit.

The Nodal Officer arranged a meeting with state level officers of agriculture and allied departments

and also introduced the study team to the district administrations. MART team consulted the district

administration for village selection and for meeting the district level officials of the line departments.

Local NGO personnel facilitated communication with the villagers.

MART used 3M approach to capture the existing livelihood scenario as described in box-1.

The fieldwork was planned in two phases. In the first phase, knowledge of major livelihood activities

was gathered through discussions with stakeholders at the state and district levels and feasible

activities were selected for the study. In the second phase, value chain analysis of 5 products covering

livelihood practices, productivity and marketing challenges was done.

Eleven villages were visited in two project districts and information was collected from villagers

through Focus Group Discussion (FGD). Individual interviews were conducted with farmers/villagers

engaged in shortlisted activities for value chain analysis. The list of villages visited is annexed.

Value chain players like the producers, wholesalers, retailers, transporters, processors, and

government institutions were interviewed. The list of stakeholders met is placed under annexure-I.

Focus was on understanding the views of the local scientific community by meeting officials of the

directorates and research stations like Krishi Vigyan Kendras1, State Agriculture Research Station

and Indian Council of Agriculture Research. This report reflects the opinions of all these experts

presented in contexts of the value chains.

1 Local agriculture research stations promoted under Indian Council of Agriculture Research

Box-1: 3M Model


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Village Selection:

The study has a mandate to cover 10 villages (5 each from Peren and Tuensang) and the following points

were considered during village selection.

1) Presence of at least 2 livelihoods activities out of the 5 shortlisted for value chain analysis

2) Maximum possible coverage of all major tribes in the districts

3) Highest possible representation from all blocks under the project area

4) Optimal representation from different agro-ecological zones

The selection process involved consultation with the district level officials and NGO representatives. It

was left to these persons with thorough knowledge of the local areas to suggest villages for the study.

However, onset of monsoon during the study time had some barring on selection of locations for the study

visit.

It may be noted that Tuensang being a large district, it was not possible to cover all blocks under the

sample.

1.5 Limitations of the study

Collection of statistical data by the state government is in evolving. Therefore, these figures are often

provisional in nature and information collected from villagers using FGD approach may not match

government statistics.

National census shows vast changes in population trend between 1991 and 2001. Changes are also

expected between 2001 and 2011. Further, state specific data related to agriculture and allied

departments of government of India is only available till 2008. Since census 2011 data are yet to be

available, one can’t present state specific trends authoritatively. Census

Discrepancies have been noticed in data available with various government agencies like NEDFI,

NEC, MoEF-GoI etc. Therefore, the selection of data source is solely dependent on the judgement of

the researcher.

Land tenure system in Nagaland is unique and written records are largely not present. Land

measurements are often based on assumptions and extrapolations. Therefore, agricultural activities

were measured on based on quantity of material planted.

In Nagaland, market players operate in restricted geographies. Therefore, flow of goods from

producer to consumer through a classical value chain (aggregatorwholesalerprocessor

distributorretailer) is not present. This makes it difficult to quantify and establish trading volumes

and associated prices. Hence, data collected from wholesalers and retailers in the wholesale and retail

markets through interviews may not be accurate.

Nagaland presents a diverse agro-ecological setup and is presented under section 3.5 on Agriculture.

However, as per the mandate of this study 5 potential products were to be identified for detailed value

chain study for both districts. Thus, after careful consideration, maize, potato, soybean, piggery and

backyard poultry were selected. Potentiality of products was determined based on the following

factors.

1. Availability and access to raw materials & production technology

2. Presence, applicability and level of skills

3. Availability of finance and support infrastructure and its usability


5 MART, Noida

4. Availability of support services like training etc.

These products may not be equally suitable for all villages in the project districts. The project, during

the implementation phase, may find products exclusively suitable to specific villages in the study area

that is not included in this report.


6 MART, Noida

Chapter 2: State Profile and Livelihood Issues

2.1 State profile

Constituted in 1963, Nagaland is predominantly mountainous with an area of 16,579 sq. km. It is

subdivided into 11 districts sharing its boundary with Assam in east and north, Arunachal in north,

Myanmar in west and Manipur in south. Scheduled Tribes form an overwhelming majority (~90%) of the

state’s population. The economy is largely (~80%) agrarian, following traditional practices.

2.1.1 Geography:

Nagaland is predominantly hilly and all 11 districts are considered as hill districts. The state is marked by

frequent shifts in ecology with change in altitude and alignment of the hills. The state witnesses high

rainfall and suffers from excessive surface runoff. There are no major rivers and only a few perennial

water bodies and this leads to water scarcity especially for irrigation during winter season.

Land ownership is mostly with individuals or the community landholdings; government owns around 7%

of the total land. Forests are also owned majorly by communities or individuals and government’s holding

is around 11% only. Community ownerships of land are of two major types, viz. clan land and village land.

The basic statistics related to geography are:

Area – 16,579 Km2 (0.5% of India)

Forest Area – 52.05% of State’s Area (1.11% of India’s Forest Area)

Over 80% of total land in Peren and Tuensang is under forests (Forest survey, 2005)

Administrative Divisions – 11 Districts, 52 Blocks, and 1317 villages

All districts classified under hill and tribal district categories

3 distinct geographical regions viz. high hill areas, lower hill ranges and plains

Severe topography full of hill ranges with deep gorges and steep terrains

11.76% and 88.24% of forests are under state and private ownership respectively

A map of the state is placed under figure-2 for easy comprehension of locational details of the study areas.

Maps of Peren and Tuensang districts are placed under figure-3 and figure-4 respectively.


7 MART, Noida

Figure-2: GIS map of Nagaland

N

W E

S


8 MART, Noida

Figure-3: GIS map of Peren

N

W E

S

N

W E

S Figure-4: GIS map of Tuensang

Legend


9 MART, Noida

2.1.2 Demography:

About 90% of Nagaland’s population is tribal belonging to 16 tribes with many sub-tribes and clans. Each

tribe has its distinct socio-cultural practices and exhibit strong bondage. Till recent past inter tribe

marriages were also rare. Further, each tribe has its own language and it is rare to find a person speaking

multiple tribal languages. Nagamese2 acts as the lingua franca in the state. It is used to communicate in

public life and in mixed families. In many villages, people were not always comfortable speaking in

Nagamese.

It was found that majority of the population in a village is from a single tribe who were the early settlers.

Over the course of time, people from other tribes also settled with permission of the village elders. This is

reflected in district specific aggregation of tribes in Nagaland. A comparative presentation of the

population profile for the state and the study districts is provided in table-1.

Table-1: Comparative population profile of project districts and Nagaland

Parameters Nagaland Peren Tuensang

Total Population 1,988,636 96,825 414,801

Male 1,041,686 (52.38%) 50,013 (51.65%) 216,888 (52.29%)

Female 946,950 (47.62%) 46,812 (48.35%) 197913 (47.71%)

Overall Literacy rate 67.11% 42% 51.3%

Female Literacy rate 61.92% 36% 46.12%

Population density 120/Km2 42/Km2 98/Km2

Major Tribes Angami, Ao, Chakhesang, Chang, Kacharis, Konyak, Khiamniungan, Kuki, Lotha, Pochury, Phom, Rengma, Sangtam, Sumi, Yimchunger, Zeliang

Zeliang, Kuki Chang, Sangtam,

Khiamniungan,

Yimchunger,

Phom, Sumi

Towns(Census 2001) 9 0 1

Recognised Villages 1317 104 234

There has been phenomenal population growth of 64.53% in Nagaland during 1991-2001. This has led to

severe pressure on the natural resources and in turn on jhum system of agriculture. The average fallow

period in Nagaland has reduced to around 7-9 years at present from 25-30 years in 1980. Further, the

level of education especially among women is low in both Tuensang and Peren.

2.1.3 Economy:

The state’s economy is primarily dependent on agri and allied sector, contribution of industry and services

sectors is rather small. The related statistics are presented below.

Net State Domestic Product at Current prices– Rs. 54.8 billion for 2006-07

Agriculture and allied sector (Share in NSDP) – 33.58% (Rs. 18.404 billion) for 2006-07

Per capita income at constant prices (1990-2000 series) – Rs. 18,147 for 2004-05

Employment – Around 65% workers depend on agri and allied activities (Census 2001)

Highly dependence on imports – Around Rs. 230 crore for pork, Rs. 200 crore for beef, Rs. 150 crore

for poultry, Rs. 50 crore for dry milk and Rs. 630 crore overall in 2004-05

2 Variously described as a pidgin or creole based on Assamese with influence of Hindi, Bengali, English and the Naga tribal languages


10 MART, Noida

Chapter 3: Livelihood Profile Livelihood of an individual is contingent upon the environment in terms of available support services,

infrastructure facilities, training and skills promotion and market. Private sector participation, promotion

of micro, small, and medium enterprises, supportive legal and policy framework, and overall

entrepreneurial environment also play a major role. The poor are more at mercy of these factors as their

capacity to negotiate and mould the environment is low or even non-existent.

The following section presents findings from the field survey for existing infrastructure and support

services available to the villagers. It also covers market availability, existing livelihoods activities and the

related community dynamics.

3.1 Demography of study villages

Major findings related to the population demography of the state are covered under demographic profile

above. The majority of the population belong to scheduled tribes with only a few non-tribal households.

The population profile specific to the study villages are presented in the table-2 below.

Table-2: Demography of study villages

Sl Village name

District/Block Number of households

Average number of members per household

Population (As provided by villagers)

Major Tribe

1 Mdunglwa Peren/Peren 98 6.5 >600 Zeliang

2 Peletkie Peren/Peren 110 5 550 Zeliang

3 Old Puilwa Peren/Peren 75 6.5 ~500 Zeliang

4 Old Jalukie Lower

Peren/Jalukie 151 5.3 >800

Zeliang

5 Mhainamtse Peren/Jalukie 375 6.9 2575 Rongmai

6 Saijang Peren/Jalukie 130 5.4 700 Kuki

7 Hakchang Tuensang/ Sangsangyu

333 12 3999 Chang

8 Sipongsang Tuensang/ Sangsangyu

253 6 1540 Chang

9 Angangba Tuensang/Longkhim 444 6.8 >3000 Sangtam

10 Chessore Tuensang/Chessore 895 7.2 6417 Yimchunger

11 Tsuwao Tuensang/Noklak 194 6.7 1300 Khiamniungan

3.1.1 Poverty Scenario in Study Villages

Naga society has a strong social security system that covers all inhabitants. However, the poor find it

difficult to maintain an acceptable standard of living due to severe economic hardships. During the

study, a few poor households were surveyed to understand the socio-economic struggles faced by them.

It was found that the aged, the widowed and the orphans faced the severest struggles and form the

poorest of the poor category. These families suffer as there are few able bodied member to work in the

agriculture fields or collect produce from the forests that form the major source of livelihoods. An

example from Peren is presented in box-2.


11 MART, Noida

3.2 Existing infrastructure and support services

One can’t overstate the importance of infrastructure in the development of economy. Infrastructure

becomes more crucial when the geographical locations are remote and terrain is difficult as in Nagaland.

In this context, infrastructure can be classified into physical infrastructure like roads, railways, irrigation,

storage facilities etc. and support services like, banks and financial institutions, training and research

bodies and industry bodies etc. The related statistics is presented below.

Rail – Dimapur only rail head (Total route length 12.84 km only)

Road – 365.3 km of national highways and 1,094.5 km of state highways

Major Urban agglomerations - Dimapur-Chumukedima, Greater Kohima, Mokokchung Metropolitan

Area and Greater Wokha

The general location of villages in Nagaland is on top of the hills. This poses a challenge in establishing

proper road connectivity between the villages and the major road in Peren and Tuensang. The roads are

often damaged by landslides and subsidence. The link roads between the villages and the main road are

the most difficult to negotiate and often extend over 5 km. Selected routes for movement of goods with

respect to Tuensang and Peren are presented in table-3.

Table-3: Select goods movement routes in Nagaland

Inter-state routes Distance (Km) Estimated travel time (hours)

Kohima to Jorhat 207 8

Mokokchung to Amguri 102 3

Mokokchung to Jorhat via Mariani 103 3-4

Dimapur to Mokokchung via Mariani 208 6-7

Dimapur to Guwahati 292 8-10

Dimapur to Jorhat 133 4-5

Inter-district routes

Kohima to Dimapur 74 3

Kohima to Mokokchung 162 5

Kohima to Tuensang via Mokokchung 269 10-12

Kohima to Jalukie in Peren 127 4-5

Kohima to Peren Town 139 5

Mokokchung to Tuensang town 115 5-6

Thanduanliu: Poor Widow from Mhainamtse Village

Thanduanliu struggle for existence begun with her husband’s the demise of in 2004. She was left to

fend for a family of 5 that includes 3 school going girls. The eldest daughter aged 20 works as a full

time maid in Kohima and is paid Rs. 3000/year and allowed an annual leave. Her relatives are in

Tamenglong, Manipur and can’t support her in any manner.

She has a small patch of land that she tills for 30-40 tins of paddy per year. This harvest is sufficient for

3 months (November to January). From March onwards she is solely dependent on daily wages earned

as a labour. The daily wages vary between Rs. 60 – Rs. 80 per day. Thanduanliu has no livestock as she

cannot afford the cost or bear the maintenance.

She has no particular plans for her future but has decided to continue her daughters’ education.

Box-2: Glimpse from poor household


12 MART, Noida

Inter-state routes Distance (Km) Estimated travel time (hours)

Dimapur to Peren 84 3.5

Intra-district routes

Tuensang to Chendang Saddle 30 1.5

Tuensang to Noksen via Longkim 72 4

Tuensang to Chessore 42 3-4

Tuensang to Sipongsang 30 1.5

Tuensang to Noklak 50 5

Jalukie to Peren 23 1

Peren to Tening 48 2.5

Almost all villages are electrified and have piped drinking water. However, power supply is erratic with

frequent power cuts and drinking water crisis occurs between January and May. The reach of service

providers (training institutes, marketing cooperatives, banks etc.) is limited to the major towns and

villagers willing to access these services have to incur high costs on travel and associated expenses. The

status of basic infrastructure in the study villages is provided in Table-4.

Table-4: Infrastructure availability in Peren and Tuensang

Facilities In Village (%) Average Distance (Km)

Telephone 17% 12

Bank 0% 11

Post Office 17% 11

Skill training centre 0% 50

Milk collection centre 0% 6

Road 83% 2

Irrigation (Dug wells) 33% 0

Nursery 17% 11

School Building (Primary only) 100% 0

Drinking Water 67% 1.5

Com. Building 100% 0

Transport 33% 11

Electricity 100% 0

Cold storage 0% 71

Veterinary dept. 33% 10

Agro. Co-operative 0% 6

Marketing co-operative 0% 24

Market Yard (RMC) 0% 24

Haat 0% 24

Rice/Maize mill (Diesel operated) 100% 0

The above data is relevant as of date but the situation is liable to change very soon due to the following

factors.

Peren district headquarters is being shifted by almost 20 Km bringing it nearer to Jalukie

Old villages assist in building new settlements. At present, the newer settlements are coming up at the

foothills near the arterial roads.


13 MART, Noida

Government of Nagaland is providing financial assistance to some villages in Mokokchung to build

new villages as models in more accessible locations. This scheme may extend to other districts soon.

The agricultural and allied practices are changing with the change in the location of the villages

making it more akin to standard agricultural practices.

A few roads are being constructed anew or developed in Peren and Tuensang. These will reduce travel

distance between Kohima and Peren and Tuensang and Jorhat. Hence goods movement will become

easier.

3.3 Credit Scenario

Financial services or credit support is limited due to poor spread of bank networks in the state. 22 blocks

in the state have no bank branches. The total number of bank branches in Nagaland is 92; in Tuensang

and Peren there are only 7 and 3 bank branches, respectively. Credit flow is further stymied from the lack

of land as collateral due to the land holding rights. It is rare to find villagers having bank accounts. As per

the discussion with the Commissioner, Industries, Govt. of Nagaland, it was found that the extent of bank

and government contribution in financing is 1.66% and 1.81% respectively while proprietors’ contribution

is 96.54% for private businesses. This data is from the MSME census of 2006-07.

The established system of lending among villagers involves extending interest free loans to the needy

household who return the money as per their convenience. Such loans are extended in case of medical

emergencies, child’s education or to meet extreme hunger situations.

3.3.1 Status of SHGs

NGOs and VOs are active in promoting SHGs to address the issues related to credit availability. Rongmai

Baptist Association and Entrepreneur Associates are 2 such NGOs active in Peren, while Eleutheros

Christian Society is active in Tuensang. All the villages covered under the study have SHGs. The average

number of SHGs per village is 4 but they are mostly within 3 years of age. However, most SHGs have a

healthy financial base with 5 SHGs having over Rs 1 lakh balance. A cumulative status of SHGs in the

study villages is presented in table-5.

Table-5: SHGs in Peren and Tuensang district

Number of SHGs per village

Avg. Number of members per SHG

Average fund availability per SHG (Rs.)

Mdunglwa 5 4,800 Peletkie 9 30,000 Old Puilwa 3 22,000 Old Jalukie Lower 3 50,000 Mhainamtse 12 35,000 Saijang 4 50,000 Hakchang 18 1,00,000 Sipongsang 2 7,500 Angangba 9 3,000 Chessore 0 - Tsuwao 5 7,000

3.4 Markets and business practices

Business practices of the Nagas have strong influence of their traditional social structure. Rural

households and in turn each villages are self-sufficient entities and don’t depend on procurement of

products and services from the market for day to day living. Their interaction with markets is sporadic

and restricted to only those few items that don’t grow on the land or can’t be manufactured within the


14 MART, Noida

village. Many stakeholders interviewed opined that lack of cash with rural households influences this

inward looking behaviour of complete dependence on self-production of a wide basket of items needed for

domestic consumption.

The villagers prefer selling their products within their village or from sales counters put up along the

major or arterial roads near their village. Sale of agri, allied and NTFP products by villagers in nearby

towns and in some cases in major markets like the urban agglomerations of Dimapur, Kohima,

Mokokchung and Wokha is neither regular nor significant in quantities sold on household basis. The sales

practices may be broadly classified as retail and wholesale at local and town levels. These are built around

three scenarios elaborated below.

Scenario 1 – This involves sale of products or services within the village. It is either on spot barter or

through an informal credit system where the settlement is done through kind only. Such sales take place

at the door step of most houses within the village and depend on the availability of surplus production or

need for cash. Such sales are not a regular feature for any household and sale often takes place among

neighbours on request of the purchaser instead of the seller. Payments are made mostly in kind but cash

purchases also take place specifically if the seller undertakes sales to meet cash requirements or if the

purchaser insists on payment through cash.

Trade in items like maize, soybean and kholar3 also takes place in the village when outsiders visit the

villages scouting for bulk purchases. Since marketable surplus is low, availability for sale per household

ranges between 10 kg to 120 kg with an average of around 30 Kg. The volume of sale ranges between 1200

kg to 1500 kg for one village during one such visit. However, these visits are not through established or

regular business linkages but often take place during the harvest season.

Scenario 2 –The villagers also try to sell a part of their surplus produce through roadside outlets on the

nearest arterial road. These outlets are mostly semi-permanent, constructed with financial aid under

various Govt. schemes like SGSY, RBH of NABARD and MGNREGS etc. The sales outlet operates as a

common facility for all households of the village. Each household is allotted space by the village council on

a rotational basis. The distance between the sales outlet and the villages vary between 1 km to 7 km and

takes around one-and-a-half hours to cover on foot. Majorly, customers at these outlets are travellers

using private transport. The product pricing is relatively on the higher side and helps the villagers earn

cash.

Scenario 3 – The villagers sell agri and forest produce in towns for which they may undertake travel over

long distances (even overnight) to attend daily/ weekly market (haat4) in urban centres.

Discussion with the sellers in a weekly market (Wednesday Haat) in Dimapur revealed that most people

carry goods valued (sale value) between Rs. 3000 and Rs. 9000. Sellers travelling over long distances (10

– 12 hours) travel by buses carrying their merchandise on the bus roof, while those from nearby areas

(within 3 hours) travel through hired transport chartered by a group of sellers from a village. At the end of

the day many sellers are forced to offload the unsold produce to the local traders at a discount of 40% –

60% of their sale price as they can’t afford to carry back the goods or stay back in Dimapur to sell them the

next day.

The major challenges related to marketing are connectivity and taxes levied by the insurgent groups. The

cost of transportation is inflated and people in Dimapur, Kohima and Mokokchung find it easier to get

products from Assam rather than other districts of Nagaland.

3 A local bean akin to pinto bean or kidney bean

4 Identified location in an area that serves as a temporary market place for sellers to gather and sell their products


15 MART, Noida

3.5 Agriculture

Nagas practise three types of agricultural systems depending on the type of terrain. Jhum is the

prominent agriculture system practiced on high inclines covering 131349 hectares5; terrace and plain

cultivation is practised on gentle slopes (valley) and plains, respectively, together covering 75988

hectares5. However, it was found that households practising terrace or plain land cultivation also did jhum

as a complementary practise. Agriculture is mostly organic with rare use of inorganic fertilisers or

pesticides.

Paddy is the staple food crop in Nagaland and the agriculture system has developed centring this crop.

Other crops including food grains, vegetables, beans and spices are grown as mixed crop in paddy fields.

Systemic mixed cropping is not practiced and row arrangements are not followed. Dominant paddy based

cropping systems as classified by the Directorate of Agriculture, Government of Nagaland are presented in

table-6.

Table-6: Prevalent cropping system in Nagaland

Agro climatic zone Cropping system

High hills Rice-Potato/vegetable

Rice/maize-mustard

Rice + wheat Lower hills Rice-wheat +mustard

Rice+ potato Foot hills Rice- potato

Rice- vegetable Plain area Rice-groundnut, rice-rice- cowpea, Rice-wheat-rice,

Rice-pulses, rice-linseed.

Jhum is an integral part of the Naga lifestyle in rural areas. Besides providing food it fulfils other

requirements of a Naga household. The jhum land is a source for firewood, fodder, spices and herbal

medicines. The activities involved in jhum cultivation are clearing (slash) and burning of foliage and

bushes, cleaning and preparation of land, sowing, weeding, tending, and harvesting practices. These

activities of jhum vary among tribes. The clans in a tribe lead specific activities depending upon their

specific skills. An average household cultivates between 1–1.5 acres under jhum and is able to take two

crops in two successive years. However, productivity during the second year is drastically reduced.

In Nagaland, women play the most important role as producers and marketers. This presents a challenge

in form of allocation of time and resources by women to livelihood and domestic activities. During an

interaction with women of Old Peren village in Peren district, it was found that, preference for livelihoods

activities is majorly influenced by the involvement of labour in such activities. For example, cultivation of

squash was more accepted as it was easy to grow and there was no need to travel far from the village.

Similarly cultivation of turmeric, yam and maize were preferred as these are less labour intensive.

The primary findings related to agriculture are presented in Table-7. These pertain to 11 villages visited in

Peren and Tuensang.

Table-7: Cultivation status of crops in the study villages

Livelihoods Villages involved

Households involved

Area of cultivation (Kitchen Garden/ Jhum/Terrace/ Plain)

Cultivation season

Sowing Harvest

5 Village Profile 2001, Dept. of Agriculture, Nagaland


16 MART, Noida


Households involved


Cultivation season

Sowing Harvest

Fruits

Banana 67% 40% J July-August Year round

Guava 33% 6% J July-August June-December

Mango 17% 3% KG July-August March-June

Litchi 17% 3% KG July-August May-June

Papaya 17% 3% KG July-August Year round

Passion Fruit 17% 1% J June-August June-July

Pears 17% 3% J July-August November-January

Pineapple 33% 23% J May-June October-

November

July-August & October-December

Orange 50% 20% J July-August November-January

Vegetables

Cauliflower 67% 75% KG/J August September November-January

Chilli (Green & Naga)

100% 100% KG/J June-July October-December

Cucumber 100% 100% KG March-April Year Round

Garlic 83% 99% KG July November-January

Ginger 83% 98% KG/J December-

January November-January

Brinjal 83% 95% KG/J June October

Cabbage 83% 94% KG/J March

November June-July January-March

Tomato 83% 75% KG/J August-November September-March

Ladies Finger 83% 87% KG June October

Squash 83% 58% KG May-July Year round

Pumpkin 100% 28% KG/J September December

Cash & Food Crops

Sugarcane 67% 20% KG September December-February

Tapioca 33% 13% J February October-November

Areca nut 33% 3% KG May-July

September-October

Year round

Maize 83% 46% J March-April August-December

Minor Millet 50% 15% J February-March July-August

Paddy 100% 95% J/T/P

Terrace June

Terrace November

Jhum March-May

Jhum October-November

Potato 100% 95% J/KG/P

January-February July-August December-

January

July-August November-December May-June

Kholar 36% 80% J August-

September November-December

Soya bean 67% 33% KG/J August- November-


17 MART, Noida


Households involved


Cultivation season

Sowing Harvest

September December

Turmeric 33% 30% J December-

January November-January

Yam 67% 54% KG/J September December

The major findings related to agriculture are as follows.

All cultivation activities are mostly in kitchen garden and Jhum land.

Though farming is done individually, cluster approach is adopted under jhum.

The average Jhum cycle (fallow period) is 9 years in Tuensang and around 15 years in Peren.

Agriculture is done in small patches using hand held equipment like axe, spade etc.

Mechanisation is not viable as the agricultural patches are in distant areas (3-6 Km) and hard to

access areas in the hills.

The concept of sequential cropping is not prevalent and farmers are used to taking only one crop in a

year.

People don’t calculate the inputs and outputs in economic terms, and are not able to express the

quantities properly against any tangible land measurement unit.

Irrigation and fencing for the cultivation fields are the most urgent requirements.

Jalukie block under Peren district is the only region in the project area that has large cultivable plain

land. Hence Peren is often referred as the ‘rice bowl of Nagaland’.

In Tuensang district, maize and millet are also grown and used as substitute to rice, which is staple

food.

Low exposure to concept of cash crop leads to low purchasing power among rural population.

Krishi Vigyan Kendras have started functioning in Nagaland over the last 2-3 years only and their

effect is still to be felt.

Due to frequent change in the agro-climatic situation within the state the cultivation season varies

widely among villages. This also leads to multiple seasons for the same crop as is reflected in table-7

above.

A major chunk of the agri-produce comes from the home stead (Kitchen) garden. These are mostly

vegetables and fruits which form some part of the saleable items. It was pointed out during the

stakeholders’ consultation workshop that government of Nagaland is focussing on developing and

enhancing cultivation under homestead garden.

Most Naga households are subsistence farmers and grow food for internal consumption only. Sales of

agricultural produce are mostly to meet their immediate cash needs rather than a systemic income

generation. Therefore, extent of marketable surplus for each product is low at the village level. The

availability status of agri-produce in the study villages is presented in table-8.

Table-8: Availability of agri-produce in the study villages

Livelihoods Average

Planting /HH Average

harvest/HH Average

Consumption/HH Average

Sales/HH Value

Addition

Fruits No significant value addition done at village

Areca nut 5 trees 600 nuts 50% 50%

Banana 500 trees 500 bunches 20% 80%

Papaya 5 trees For self only 80% 20%

Passion Fruit 25 trees 10% 90%


18 MART, Noida

Livelihoods Average


harvest/HH Average


Sales/HH Value

Addition

Pears 4 trees 160 Kg 10% 90% level for increasing sales value. Sorting grading is not undertaken against specific standard weights and measures.

Litchi 5 trees For self only 100% 0%

Pineapple 155 plants 155 10% 90%

Mango 5 trees For self only 100% 0%

Orange 22 trees No harvest yet

Guava 10 trees For self only 90% 10%

Vegetables

Brinjal 20 plants For self only 90% 10%

Cabbage 50 plants 100 Kg 40% 60%

Cauliflower 25 plants For self only 70% 30%

Chilli (Green) 50 plants 15 Kg 5% 95%

Chilli (Naga King) 30 plants 15 Kg 25% 75%

Cucumber 10 plants For self only 90% 10%

Ladies Finger 10-15 plants For self only 90% 10%

Squash 100 ft2 10 fruits/day 50% 50%

Pumpkin 4-5 plants For self only 70% 30%

Cash & Food Crops

Rubber 4 hectare No Harvest yet - -

Sesame <100 g For Self only 100% 0%

Minor Millet A handful of seeds For self only 100% 0%

Maize 1 Kg 110 60% 40%

Husked maize is sold as a standard practice.

Garlic 100 plants For self only 100% 0% No significant value addition done at village level for increasing sales value. Sorting grading is not undertaken against specific standard weights and measures.

Paddy 68 Kg 4100 80% 20%

Potato 5 Kg For self only 90% 10%

Ginger 50 Kg 214 Kg 50% 50%

Kholar 20 Kg 200 Kg 20% 80% Pods are opened and seeds are sold after

Soya bean 50 g For self only 100% 0%


19 MART, Noida

Livelihoods Average


harvest/HH Average


Sales/HH Value

Addition

removal of chaff

Sugarcane 10-15 plants For self only 100% 0% No significant value addition done at village level for increasing sales value. Sorting grading is not undertaken against specific standard weights and measures.

Tapioca 10-15 plants For self only 90% 10%

Tomato 15 For self only 90% 10%

Turmeric 10-15 plants For self only 100% 0%

Yam 60 Plants 180 Kg 60% 40%

3.5.1 Land holding pattern and use rights:

The land rights and ownership pattern in Nagaland revolves around the concept of village as a republic.

Ownership types are divided into village community land, clan land and individual land. Individuals

acquire citizenship of a particular village or town through and get use rights to the village community and

clan land. Thus, any individual has use rights to all three types of land, which makes Nagaland virtually

free of landless people.

Further, ownership does not allow individuals to sell land without consent of the clan, tribe and village

from which they belong. Mostly, sale is permitted only between clan members or inhabitants of the

village. Therefore, it is found that besides exclusive usage individual land is also controlled by the

community. Ownership of homestead or non-agricultural land is bestowed by the village to an individual

during the time of settling down in a village and accepting its citizenship. Ownership of land thus

acquired is transferred to the heirs in the family.

The community declares a family as landless, if it sells land owned by them and are solely dependent on

the availability of community land or leased land for agriculture and other needs. It was observed that sale

of own land is undertaken to meet financial exigencies mostly related to meet treatment cost for illness

and in some cases due to gambling and other vices.

Records of individual land holding in any form of patta or village level records were not found in any of

the villages visited. The markings are maintained through placement of small rocks on the field. Records

are also not available for village community or clan owned land as well. Land boundaries are demarcated

by physical features and natural formations like streams, cliffs, gullies, hills, plains etc. and often through

stones placed by the owners. Further, each tribe, clan and village has some unique traditional practices

related to land rights.


20 MART, Noida

3.7 Animal Husbandry

Naga food basket has a major portion of meat and meat products. Regular meals also include insects, fish

and egg though the preference for egg is low. Each household strives to attain self-sufficiency in this

regard and maintains different livestock even if the numbers are low.

Dairy farming is not widely practiced as milk consumption among tribal population is low. Cows and

Mithun (Sc. Name - Bos frontalis) form the majority cattle population in the study villages. Buffaloes were

not found during the study. Cattle are reared majorly for meat and are allowed to forage freely in the

forests. This creates conflicts due to fear of crop damage. It was found that two of 11 village councils met

under this study had banned cattle rearing in their villages.

Mithun is the state animal of Nagaland and is closely linked to the socio-cultural life of the Nagas. It is a

matter of prestige for a household to own and sacrifice mithun during festivals and special occasions.

However, perceptions about mithun meat vary from exotic to unappealing. Further, mithun is considered

a semi-wild beast by villagers while scientists opined that it is domesticable. Mithun costs between Rs.

25000 to Rs. 30000. The rates depend on demand that is high during the festivals.

It was found that almost all households were involved in piggery and poultry activities. They use small

pens, sties or coops to rear animals in small numbers next to their houses without adequate hygiene.

Mostly, women care for the pigs and poultry. The reasons cited for low scale involvement were lack of

time and financial inadequacy. Table-9 gives assessment of livestock practices in the study villages.

Table-9: Status of livestock rearing in the study villages

Livelihoods Villages involved (%)

Households involved (%)

Animals/HH

Marketable Surplus

Cattle rearing 100% 21% 6 Generally not sold. Sales occur mostly during festivals only.

Fishery 33% 0.40% 60 Kg/year Sold infrequently as per the catch and only if domestic demand is met.

Piggery 100% 87% 2

Culling of pigs reared in villages happen only during festivals or if there is a financial exigency. Hence regular sales are not observed.

Poultry 100% 94% 8 Sales occur mostly at the insistence of the buyer and not the farmer. Not a regular feature.

The major findings related to livestock rearing are as follows.

Livestock rearing is a year round activity and as production volume is quite low compared to

demand no seasonal variations are evident.

Pigs reared in villages are of mixed breed and pure breeds are almost impossible to locate and

procure for rearing.

Villagers buy piglets locally. In Peren, some villagers have bought pigs from the government

facility in Medzhiphema. However, such procurements are rare.

Pigs require a lot of care and consume high volume of feed and water. Most households in the

villages find it difficult to provide for more pigs due to these reasons and can afford to rear 1-2

pigs only.

Pigs are slaughtered by the households itself for self-consumption, mostly during festivals. Sales

are rare and take place only to meet financial exigencies. The households have a system of drying


21 MART, Noida

pork and preserving it for consumption later. Excess pork is sold at the rate of Rs. 120/Kg among

the villagers by the households directly.

There is no broiler poultry rearing facility in the study villages. Only local free ranging country

birds are reared by the farmers.

Poultry rearing is an incidental livelihood rather than a planned economic activity in the villages.

The local varieties of country bird are slow growing and don’t put on much weight even after 6

months.

Sale of poultry is not through any standard measure but only by mutual bargain. A bird weighing

around 2 Kg is priced at Rs. 250-300. Open sale of poultry by villagers is also rare.

Cattle rearing are rare in Nagaland. The animals are allowed to roam freely in the forests and not

stall fed like in other parts of India. Cattle are reared mostly for meat and slaughter takes place

mostly during festivals and occasions like marriage, funeral etc.

3.8 Non Timber Forest Produce

Nagas depend on their forests to meet their day-to-day requirements. The most prominent dependence is

for food, shelter, water, fuel, fodder, and medicines. Forests are abundant and provide for timber and fuel

wood for the villagers. They also collect varieties of non-timber forest produce (NTFP) from forests. These

NTFP are available almost all round the year and meet a major part of a villager’s food. It is also a source

of cash for the rural households. A list of major NTFP and their consumption pattern is provided in table-

10.

Table-10: NTFP collection and consumption pattern in the study villages

Livelihoods Villages involved (%)

HH involved (%)

Avg Consumption /HH

Average Sales /HH

Storage facility in village

Value Addition possibility

Anwla 50% 49% Minimal 600 Kg The villagers store the produce temporarily in their houses as there are no established storage facilities in the village.

Yes

Varieties of Bamboo Shoot

100% 78% 40 Kg/year 100 Kg No

Banana Flower 33% 11% 50 pieces 50 pieces No

Firewood 100% 100% 12000 Kg/year 150 Kg/month

No

Varieties of Fruits

100% 100% Couldn’t be quantified

0 No

Herbs & leaves 100% 100% Couldn’t be quantified

0 No

Honey 100% 34% 2 litre 1.5 litre Yes

Khair (Thatch Reed)

33% 21% Couldn’t be quantified

0 No

Mushroom 100% 54% 24 Kg 11 Kg Yes

Roots 100% 100% Couldn’t be quantified

0 No

Wasps 100% 100% Rs 3000/year Rs 1000/year No

It was found that forest produce are mostly gathered for self-consumption. Sales are considered only if an

opportunity exists to sell the items in addition to other agricultural items. Many times, crabs, fish and

small animals are also sold after hunting them from the forests. The forest produce brought to the market


22 MART, Noida

for sale are often premium items (eg. 6 small crabs cost Rs 100) and cost is often beyond the reach of local

buyers. The harvest for most of the NTFPs is possible all throughout the year. The availability for the

various products is presented in table-11 below.

Table-11: Availability of NTFP

NTFPs / Months Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Anwla

Varieties of Bamboo

Shoot

All round the year

Banana Flower All round the year

Firewood All round the year

Varieties of Fruits All round the year

Herbs & leaves All round the year

Honey All round the year

Khair (Thatch Reed)

Mushroom

Roots All round the year

Wasps All round the year

3.9 Service based Livelihoods

The current scenario of employment in service in the study villages shows though some households in

every village are involved in service there number is too few. Further, many of those who are employed in

better jobs don’t stay in the villages. The status of service based livelihood is presented in table-12.

Table-12: Service based livelihood scenario

Livelihoods Villages

involved (%)

Households

involved (%)

Place of Work

(In village/Outside)

Army 67% 7% Outside

Blacksmith 17% 0.30% In Village

Carpentry 33% 3% In Village

Cobbler 17% 0% In Village

Driving 17% 0.40% Outside

Government Job 83% 2% Outside

Handicraft 100% 50% In Village

Private Job 50% 4% Outside

Teaching 100% 2% In Village

Weaving 83% 37% In Village


23 MART, Noida

3.10 Skill Profile

Naga households display high levels of self-sufficiency in their day-to-day life. This necessitates that

members of the household are able to take care of multifarious activities requiring diverse skills. Thus it is

common to find a person in Nagaland with wide ranging skills covering, cultivation, hunting, cooking,

knitting, carpentry, basket weaving, etc. However, all these skills are mostly used for meeting their daily

needs and are seldom put to business use and earn livelihoods. These skills are traditional in nature and

reflect the Naga heritage. There is disconnect among the existing skill sets and the larger market outside

Nagaland as there are very few opportunities for interaction. Further, these artisans are more attuned to

working with traditional machineries and equipment that are low on productivity. For e.g. it was observed

during this study that most women in Nagaland know the art of knitting and weaving but none had

exposure to advanced looms like the fly shuttle loom etc. and continued to work on the traditional tension

loom.

The status of skills among the villagers in the study villages is presented in table-13

Table-13: Status of skills

Skill Available in % of villages

Average number of

persons/village

Used for Business (Yes/No)

Tradition skill/ acquired skill

Stitching 30 1 Yes Acquired

Embroidery 10 5 No Acquired

Food processing 0 0 No -

Candle making 0 0 No -

Handicraft 100 10-15 4 persons overall in all study villages (Rest sell items only if requested by anyone)

Traditional

Incense stick making

0 0 No -

Weaving 100 Almost all young women

28 overall in all study villages (Rest sell items only if requested by anyone)

Traditional

Knitting 100 Almost all young women

No Traditional

Electrician 30 1 Yes Acquired

Carpentry 100 13 (Most youth have basic carpentry

skill)

110 overall carpenters in all

study villages

Traditional

Construction 60 14 Yes Acquired

Driver 80 9 Yes Acquired

Insurance agent 0 0 No -


24 MART, Noida

Chapter 4: Value Chain Analysis Chapter 3 captured community’s engagement in a long list of activities across land based, livestock and

non-farm sectors. The criteria (engagement, interest and capacity of the poor, possibility of engaging large

number of poor, market demand, gestation period) were shared with Project Director, NERLP and World

Bank and agreed upon to shortlist four products for value chain analysis. These products are maize,

potato, soybean and piggery. All shortlisted products are suited equally to the conditions in Peren and

Tuensang.

Value Chain development is a process, which analyses every stage of the product or services i.e. from

production to the end consumer and endeavours to build the competitiveness across the chain. Value

chain analyses involves identifying product movement, number of channel partners involved and roles

performed by them, value received by each of the channel partners, constraints faced by each player in the

chain. Value chain analysis helps to identify opportunities for value addition at every stage of the product

from production to its marketing, prices at every stage and corresponding value addition possibilities,

assess infrastructure requirement and capacity building needs of producers to achieve higher value in the

chain.

4.1 Selection of Activities

The study was limited by its scope to study value chain for 5 potential activities. Hence, a selection process

for shortlisting 5 activities for detailed value chain analysis was adopted. During the process of selection,

activities widely present among the villages in the districts of Peren and Tuensang were only chosen. It

was decided during the meeting with the Project Director, NERLP and World Bank that activities that

show long gestation period will not be included under value chain analysis in this study. Further, some

lucrative activities mostly based around NTFPs, honey and Ari silk were not considered for value chain

analysis as these activities were not present extensively in the selected study villages. The process is

presented in the following flowchart.

Task performed Key Steps Shortlisted activities

Review of regional implementation plan provided by World Bank

Study secondary reports and concerned websites

Step 1 Literature

review

Vocational training, Soybean, Backyard Poultry, Ginger, Turmeric, Paddy, Pineapple, Large Cardamom, Ari Silk, Chilli, Piggery, Fishery, entrepreneurship development etc.

Meeting with state nodal officer

Meeting with APC, Commissioners and line department officers at Kohima

Meeting with govt. officials, bankers, NGOs, villagers and SHGs at Dimapur, Peren and Tuensang

Village visits in both districts

Review of secondary reports

Step 2 Field visit and meeting with government officials and

resource agencies in Nagaland

Piggery, Maize, Mithun, Potato, Kholar, Soybean, Backyard, Poultry, Ginger, Turmeric, Paddy, Pineapple, Large Cardamom, Squash, Yam, Ari Silk, Chilli

Meeting with World Bank staff and Project Director, NERLP at New Delhi

Analysis of secondary reports

Step 3 Consultation

with PD, NERLP and World Bank

Potato cultivation

Maize cultivation

Soybean Cultivation

Pig rearing

Backyard Poultry

Figure-5: Process for Selection of activities


25 MART, Noida

Based on the discussion with Project Director, NERLP and World Bank staff at New Delhi criteria

(engagement, interest and capacity of the poor, possibility of engaging large number of poor, market

demand, gestation period) was shared to shortlist five products i.e. maize, potato, soybean, pig and

backyard poultry for carrying out value chain analysis. All the five shortlisted produce are suitable for

both project districts. Summary of the recommended products and interventions are mentioned in table-

14.

4.2 Summary of suggested interventions

The summary of suggested interventions in presented in table form under table-14. The activities should

take especially focus on involving women as they perform the majority of the functions from production to

marketing.

Table-14: Summary of suggested interventions

Activity Size of activity suggested Partnership Key support to be

provided by the Project Produce Suggested Unit of

activity

Capital

required

(Rs)

1st

Year

RoI

(%)

potential

Maize Popularising

extensive

maize

cultivation

using

improved

agriculture

practices

1 acre 5,130 137.66 State

Directorate of

Agriculture,

SARS,

Mokokchung

KVK-Tuensang,

ICAR-

Jharnapani

NGOs

Wholesalers in

Dimapur and

Mokokchung

Organise villagers in SHGs

and capacity building of

existing SHGs for

extending financial

support to cultivators

Training on improved

package of practices

Supply of improved

variety of seeds like

quality protein maize

Introduce collective action

for input sourcing and

output marketing

Market exposure and

linkages

Potato Popularising

extensive

potato

cultivation

using

improved

agriculture

practices

0.5 acre 17,656 125.08 State

Directorate of

Agriculture,

SARS,

Mokokchung

KVK-Tuensang,

ICAR-

Jharnapani

NGOs



existing SHGs for

extending financial




Supply of improved

variety of planting

material like kufri-jyoti


26 MART, Noida



activity

Capital

required

(Rs)

1st

Year

RoI

(%)

potential

Wholesalers in

Dimapur and

Mokokchung

kufri-pushkar etc.



output marketing

Market exposure and

linkages

Soybean Popularising

extensive

soybean

cultivation

using

improved

agriculture

1 acre 8,340 105.03 State

Directorate of

Agriculture,

SARS,

Mokokchung

KVK-Tuensang,

ICAR-

Jharnapani

Wholesalers in

Dimapur and

Mokokchung



existing SHGs for

extending financial




Supply of improved

variety of seeds like JG 74,

JG 315, JG 218 etc.



output marketing

Market exposure and

linkages

Pig Rearing

Pig for

selling

piglets and

fattened

pigs for

pork

2 Sows

and 6

fatteners

124,992 30 State

Directorate of

Animal

Husbandry,

KVK-Tuensang,

ICAR-

Jharnapani

NRCP,

Guwahati

Regional Pig

Breeding Farm,

Kyrdemkulai,

Meghalaya

NGOs

Local traders



existing SHGs for

extending financial




Supply of improved

variety of piglets like

Large Black, Hampshire

etc.



output marketing

Market exposure and


27 MART, Noida



activity

Capital

required

(Rs)

1st

Year

RoI

(%)

potential

(Butchers) in

district towns

Wholesalers in

Dimapur and

Mokokchung

linkages

Backyard Poultry

Rearing of poultry birds and selling of birds and eggs

20 birds 5,936 14 State

Directorate of

Animal

Husbandry,

KVK-Tuensang

ATMA

CARI

NGOs

Wholesalers in Dimapur and Mokokchung



existing SHGs for

extending financial




Supply of improved

variety of birds like

Kalinga Brown, Mumbai

Desi, Rhode Island Red,

CARI Nirbheek etc.



output marketing

Market exposure and linkages


28 MART, Noida

4.3 Maize cultivation Value Chain

Maize, also known as corn, is a cereal that was first domesticated by the Latin American countries around

7,000 years ago. Today, maize is widely cultivated throughout the world, with a greater weight of maize

produced each year as compared to any other grain. While, the United States produces almost half of the

world's harvest, other top producing countries are as widespread as China, Brazil, France, Indonesia,

India and South Africa. There are numerous varieties (species & sub-species) of maize showing significant

variation in shape, size, taste, growth and yield. It is suited to most agro-ecological systems6 and easy

cultivable. It occupies a unique position in our food basket due to its versatility, meeting varying

requirements of nutrition and palate of diverse cultures. It is also a major component in animal fodder. It

is easily storable and has a long shelf life.

Maize Report of The Associated Chambers of Commerce and Industry of India (ASSOCHAM) puts current

maize consumption levels at around 16 million MT. Rate of consumption has begun to grow at speed of

6% against its average growth rate of around 5% in the recent past. This demand is being fuelled by

increasing demand from poultry sector. The trend is justified due to the growth in poultry farming that is

increasing due to its demand factor and ability to provide self-reliance to large number of entrepreneurs.

The projected consumption level has been drawn at 30 million MT by 2020.

The current level of maize yield in the country (2.17 MT/Ha) is far behind the global average of 5 MT/Ha,

and there is a huge scope for improvement in yield by improving the adoption of hybrids, particularly in

traditional maize growing regions. If the country manages to push maize yields anywhere close to global

average, there is a huge scope for increasing maize exports from the country as global demand for maize is

also growing strongly. The report also mentions that maize consumption growth was around 5% per

annum over the past two decades while production grew at about 6% turning India from a net importer to

net exporter. Production growth has been attributed to increase in acreage and yield. However, increasing

competition among crops is foreseen and it is predicted that production growth will largely depend on

growth in yield.

The break-up of use of maize as provided under this report shows that poultry sector forms the largest

chunk (51% of total maize consumption in India) followed by human consumption (26%), starch (12%)

and livestock feeds etc. (11%). Earlier also, maize was an important feedstock for poultry farming but its

percentage was less than 40% which today is estimated around 51% and the same trend will continue for

another decade. Meat production in India saw compound annual growth rate (CAGR) of 5% during the

past decade with growth in exports likely to touch 10% per annum in the near future. This shows a healthy

near to medium term demand scenario for maize. Further, the recent strengthening of corn prices globally

has increased the demand for maize from India in Asia.

Maize is well adapted to the upland agriculture practices in Nagaland. Its importance is next to paddy.

There are three local varieties commonly known as hard, soft and gum varieties. The hard variety is

cultivated more due to early sowing and harvesting cycle. Further, the hard variety is more suited for both

human consumption and fodder. It is also easier to store the hard variety as it has a comparatively longer

shelf. Provisional figures for maize production in Tuensang and Peren during 2009-10 are 10420 MT and

3110 MT respectively as per department of agriculture, government of Nagaland. There was a production

fall of over 40% from the previous year in both these districts while cropped area was almost same. The

state is a net importer for maize mainly for use as pig feed.

6 Classifying geographical areas based on environmental conditions (climate, soils, terrain & elevation), land use, land cover (habitation, cropland, pastures, forests, barren land etc.), population, socio-cultural systems, and infrastructure with respect to agriculture. – Derived from Agro-ecological Zoning System of FAO


29 MART, Noida

Rural households cultivate maize mostly for self-consumption. In the study villages, 10% - 50% of maize

production is sold. Further, only 25% of maize cultivating households sell the produce and availability of

maize for sale in each village is around 3 MT in general.

Production clusters

Maize is grown throughout the state except for the plain land as in Jalukie area and the permanent

terraces in the valleys. Intensity of cultivation in Tuensang is much higher than in Peren but productivity

is similar in both districts. The overall production n Tuensang is more than 3 times of that in Peren. Phek,

Zunheboto and Kiphire are the major maize growing regions in Nagaland.

Production Practices and Technology

Maize cultivation is totally rain-fed and organic in Nagaland. It is extensively done only on jhum land.

Some households also plant 5-10 plants in the kitchen garden but this is rare. It is never grown on plains

or terraces as these are exclusively used for paddy cultivation. Maize is generally grown as intercrop for

upland paddy or as a dominant crop under mixed cropping pattern in the jhum land. Since farming is

restricted to one cropping season (March–September) due to scarcity of water, intensive cultivation of any

single crop by a household is not found. Thus exclusive cultivation of maize is not done by any household.

Different indigenous varieties (species & subspecies) of maize having distinct shape size, texture and taste

is cultivated. Cultivation techniques are uniform for all these types but the sowing seasons are different.

Due to frequent change in agro-ecological systems6 sowing season and preference for the varieties vary

among villages. Even adjacent villages have different agro-ecological systems. Farmers in Peren have 2

seasons for maize cultivation the 1st from March to June and 2nd is from April to September. Productions

during both seasons are comparable. In Tuensang, the season is from March to December but harvest

starts from August. Limited reach of extension services and people’s preference for local maize has led to

continuation of traditional cultivation methods.

The cobs are allowed to stand in the field and are harvested only in small quantities for domestic

consumption. Large scale harvesting is undertaken only when there is a decision to sell the product in the

market.

Major usage and by Products

Maize is next in importance to paddy as a staple food for the Nagas. It is consumed in multiple forms like

boiled or roasted whole grain, porridge of boiled coarse ground grains and boiled with rice as fine ground

powder.

Maize also finds use as fodder for pigs and poultry that are the main source of animal protein in the Naga

household. It is used poultry feed as dry well ground powder and as pig feed in form of boiled coarse

ground grain.


30 MART, Noida

Value chain map

Maize is generally consumed in ground form. A tin of grain produces 10-12 Kg of ground Maize of

which 50% is fit for human consumption and the rest is used for animal (pig and poultry) feed.

Villagers prefer to sell the produce at village level as price realization at village and towns are almost

same. This because of difficulty in transportation that is time consuming and costly reducing the

benefits of sale at distant locations.

In the districts, maize is generally traded at the town level. Some traders act as aggregators and

process small quantities for sale within the district. Consumers often visit villages with vehicle to buy

maize directly from the farmer households. The unit for sale in the village is tin. A tin7 contains 15-16

Kg of maize grain and is sold for Rs. 100. Village level sales take place only during the harvest season

i.e. from September to January.

Tuensang is the major market for Tuensang district. Other major markets are Longkhim, Chare,

Noklak, Shamator and Chessore. Jalukie and Peren are the major markets in Peren district. Other

markets locations in Peren are Tening, Athibung, Pedi and Ngwalwa. Besides the above, maize is also

sold as cobs in from the roadside sales counters located near the villages. These sales counters are

almost universal and at least one marketing shed or temporary sales counter can be found near each

village.

The state imports maize from Jorhat in Assam. It is the largest wholesale market of the region and also

has a number of processing units for grain processing. The daily supply of maize (in ground form)

from Jorhat to Mokokchung in Nagaland is around 4-5 tons. The cost in Jorhat Rs. 10-11 for fine

ground powder and Rs. 11-12 for coarse ground grain. Carrying cost works out to Rs. 50 per bag (50

Kg). Similarly, Dimapur market also imports maize from Jorhat. Supply and costs at Dimapur and

Mokokchung are exactly similar and vary on day to day basis based on the wholesale market rates in

Jorhat. Effect of seasonality is minimal on the market rates.

7 Cuboidal containers used to pack edible oil in bulk (15 litres) generally made of galvanized steel

Figure-6: Maize value chain map


31 MART, Noida

Maize reaches the end consumer through multiple routes as represented in the value chain flow

diagram. The villagers often buy products from each other as per its availability. Direct sale of maize to

consumers in local towns and major towns (infrequent) is also done by the villagers. However, the

transaction volume for these sales is low. Mostly cobs are sold by villagers through direct retail and

shelled grains are sold in bulk (1 – 10 tins) to traders in district towns who in turn sell it to consumers

and traders in major towns either as whole grain or in ground form.

Traders in major urban locations mostly procure maize from Assam for sale in their respective towns

and nearby locations. Only a small quantity of the village produce reaches them. These traders don’t

scout for maize proactively from the villages. They buy local maize only if some villager or district town

trader approaches them with the produce. Purchase rate for sale is not pre-negotiated and this works

to the disadvantage of the producers. Sellers bringing in maize from the district find it difficult to carry

it back if they don’t get desired price for their product and are forced to off load it at a loss.

Overall, the interaction between the farming households and the markets in the towns (local and

major) can be termed as limited and skewed. The situation is complicated by availability of maize at

competitive rates from Assam and transportation bottlenecks plaguing intra-state movement in

Nagaland.

Possibility of setting up processing unit

There is a possibility of processing maize into pig feed exists. However, setting up such processing units at

the village level would require sufficient entrepreneurial skills among poor, marketing and technical skills,

and ensured market linkages with bulk buyers to sustain such units. The demand at the village level is low

and marketing of products outside would require successful marketing interventions such as proper

packaging and branding. It is, therefore, suggested that maize cultivation should be encouraged focussing

on productivity enhancement and market linkages as production of maize in the state is less than its

demand. After couple of years project can identify few individuals with entrepreneurial skills to

experiment setting up few processing units. Project staff with marketing skill could be involved for

conducting the detail feasibility study before setting up such units.

Stakeholders: Roles & Functions

Farmers

A Naga agricultural household generally consists of 5 members of whom 2 adult members are wholly

involved in agricultural activities with occasional support from the aged and the young. Family size is the

limiting factor in deciding the scale of cultivation as agricultural labour is generally provided by the

household. Hired labour is utilised only by affluent households who can afford to pay for the services in

cash. The number of households undertaking large scale farming is so low (less than 1 per village

surveyed) that categorising farmers into subsistence and large scale categories adds no value to the

analysis. Farming practices are similar among households in a district and changes are noticed only for

the farmers of Jalukie plains or those having large tracts of terrace paddy cultivation.

Access to agricultural inputs like seeds, fertilisers, pesticides are similar for both large and small farmers

but access to finance is easier for the affluent section as they have bank accounts and an established

business relationship with the financial institutions. Further, large farmers find it easier to access the

market as the cost of carriage is reduced due to larger loads being transported at time.

Thus, it can be said that that the only difference between a large farmer and a subsistence farmer in

Nagaland is in terms of the area cultivated and not in terms of practices or productivity.

Input Suppliers & Sourcing


32 MART, Noida

The farmers prefer to grow & keep their seeds for sowing in the subsequent years. They hang the maize

cobs high over the kitchen hearth for safe storage. There is an age old tradition of seed swapping among

tribes and villages, especially during the festivals. However, this tradition is not prevalent now and is

practiced in rare occasions.

Agriculture practices of the Nagas are organic in nature. Farmers don’t use fertilisers or pesticides. Farm

yard manure is seldom used. The steep slopes that form the jhum land are not suitable for undertaking

mechanized agriculture. Further the approach roads are inadequate for taking heavy machineries to the

field. Agriculture activities are mostly carried out through handheld implements and harvested produce is

carried in baskets as head loads to the nearest motorable road.

The practice of jhum also makes it infeasible to undertake activities towards construction or land

development that is permanent in nature. Any such investment will be useful only for one year. Hence,

interventions related to land development activities, irrigation, fencing and the likes are not prevalent.

However, occasional seed supplies (indigenous variety) by the government or loans from SHGs are

available for farmers. Farmers voice the requirement for credit especially for engaging labour. Banks are

not able to fulfil the requirement as the current land tenure system act against issue of land as collateral

by the farmers. The situation is further complicated by the hindrances posed by insurgent groups that

limit the reach of banks and hamper services for the farmers in the interior areas of the districts.

Wholesalers

Large scale trading in maize is only found in the 4 major urban agglomerations i.e. Dimapur, Kohima,

Mokokchung and Wokha. Wholesalers import maize mostly in ground form (both coarse & fine) from

Jorhat and sell to the retailers in nearby areas (smaller district towns & large villages). The preference for

buying local produce is low among wholesalers in Dimapur & Mokokchung as they have easy access to

Assam.

Wholesalers try to avoid inter-district procurement of produce and sale of goods due to the hindrances

posed by the insurgents and the tribal factions. There are numerous gate taxes and levies charged by the

insurgent and dangerous elements that render the business unprofitable and risky. The prevalent practice

is to get into a negotiated settlement wherein the traders pay agreed sum of money to these groups at

regular intervals (like monthly, quarterly or yearly). Therefore, activities of a wholesaler are restricted

within a district be it for procurement of produce or sale of products. Two exceptions exist in this practice.

They are supply live pigs and pig feed to Peren and Dimapur for slaughter by wholesalers of Dimapur and

supply of chicken and chick feed to Wokha by wholesalers of Mokokchung. Pigs, chicken and the feed for

these supplies are procured from Assam.

Another factor affecting wholesale trade is the mentality of the Nagas. Producers in villages tend to charge

retail rates for their produce even in case of large procurement by wholesalers. As example, sale price of

local potato in villages of Peren is Rs. 25/Kg whereas potato procured from Dimapur (supply from Assam)

is sold for Rs. 13/Kg. Similar pricing exist for all products that are produced locally and those coming

from Assam. This leads to aversion among the wholesalers to interact with local producers.

However, despite of the above conditions it was found that villagers bring local produce and sell it to

traders in district towns. These traders don’t fit the exact description of a wholesaler and acts more like

aggregators. They purchase small quantities from various sellers and sell it to the town population and at

times send it to Dimapur, Kohima and other larger towns. As example, a retail trader in Tuensang sold

200 bags (58 Kg/bag) of ground maize to a grocery shop in Mokokchung. Though this may qualify as a

wholesale operation it is a one off incident and took place among entities who are not exclusively involved

in wholesale operations. Often town traders visit nearby villages to procure maize in bulk. They buy small

quantities (15-100 Kg) from each household and bring back around 2 MT in each trip. Such procurement

takes place mostly during November – January i.e. the harvest season.


33 MART, Noida

Retailers

Women of the Naga household are actively involved in sale of the agricultural produce. They carry goods

to markets8 either as head load, public transport or by collectively hiring a vehicle depending upon

location and individual financial capacity. Maize is sold mostly as cobs in bunches of 5-6 that is priced at

Rs. 10. At times shelled maize grains are also sold. These grains are sold in tins (15-16 Kg) priced at Rs.

100. These sales take place mostly in nearby towns and it is rare to see villagers carry them to larger towns

in distant locations.

It is rare to find people engaged in exclusive retailing activities as villagers feel that by retailing their

produce they realise a higher return compared to selling to a retailer. In the district towns, fulltime

retailers stick to selling products (rice, potato, oil, spices and other grocery items including FMCG)

coming from outside the state and get to purchase products from the villagers rarely. However, few

traders especially women from Peren and Jalukie towns collect vegetables from nearby villages and sell it

at the weekly (Wednesday) market in Dimapur. These women generally carry merchandise9 worth Rs.

6000 – Rs. 10000 per person. A group of 2-3 retailers hire one vehicle for carrying their produce to

Dimapur.

Transporters

Transport infrastructure is poorly developed in Nagaland. The major constraints are hilly terrain, lack of

proper road connectivity, inadequate presence of public transport (especially government sector) and

thinly dispersed population providing less number of travellers in each route resulting in sub-optimal

utilisation of vehicles. Long distance connectivity is poor and time consuming.

Transport business (goods and passenger carrier) is mostly run by individuals within the state except for a

few bus services run by private agencies based in Dimapur. The vehicles are mostly self-driven by the

entrepreneur with occasional vehicle being run by a hired driver. Running cost of vehicles is high due to

difficult terrain and poor road conditions. They also feel pressure from the insurgent groups and tribal

factions who demand passage charges and often impose bandhs10. Therefore, transport is costly in

Nagaland and acts as a major hindrance for establishment of business linkages.

Villagers generally carry an assortment9 of produce as head load to the nearest market locations 11.

Vehicles are chartered collectively by the villagers when the quantity of produce being carried to a single

location is large (around 500 Kg or more). The preferred vehicles are Tata 20712, Tata 40712, Tata Sumo12,

Mahindra Pikup12, Mahindra Marshal12 and the likes. A round trip by Tata 207 from Peren town to

Dimapur costs Rs. 2500 (170 Km) while that from Tuensang to Mokokchung costs above Rs. 6000 (230

Km).

Proposed interventions

Productivity enhancement and collectivisation for sale are the major areas of intervention areas for the

project. Productivity enhancement is the most important under the current situation whereby rural

households would have marketable surplus. The cultivators have to be trained on suitable advances in

agricultural practices and provided input support for achieving higher productivity. Ways & means of

irrigation need to be identified for cultivation on jhum lands so that the production can be ensured even

during the dry season. Proper crop study needs to be under taken in association with the State Agriculture

8 See ‘Markets and business practices’ under Livelihoods Section

9 Vegetables (squash, tomato, brinjal, beans, leaves etc.), chilli, ginger, garlic, bamboo shoot, fish, crabs, wasps etc.

10 Blockade on road movement & general public transactions including markets, schools, banks etc.

11 Sales counters, large villages, local towns and crossroads on and along the arterial roads and major thoroughfare

12 Vehicles suitable for carrying between 1.5- 4 MT goods


34 MART, Noida

Research Station (SARS)13, Mokokchung and the respective Krishi Vigyan Kendras in the districts. This

will help in proper selection of seeds and determine measures for augmenting soil fertility.

Technical feasibility

The SARS has identified maize as one of the important crops to be promoted in the state. The

suitability of maize to Nagaland is well established as it has been cultivated historically with

encouraging results. The hilly terrain with low soil moisture is naturally suited to the crop.

Nagas have traditional farming skills and maize is universally cultivated in the state.

Technical experts available with public sector research centres like Krishi Vigyan Kendra, state

agriculture research station and ICAR centre in the state can be used for developing area specific

solutions and training of farmers.

Market feasibility

Nagaland is a net importer of maize. The imports are especially for the districts having proper

connectivity with Assam.

Maize is a preferred consumption item and is also the major component in pig feed.

The production of maize has gone down over the last 2 years mainly on account of lower productivity.

Economic feasibility

The feasible unit size for maize cultivation at household level is 1 acre. The cost of investment for

intensive maize production for 1 acre is Rs. 5130. The overall income is 11,700 with a benefit to cost

ratio of 1.44 and return on investment of 137.66%.

Maize shows lower risk of crop failure and lower labour requirement in comparison to rice which is

the principal cereal in the state.

Proposed strategy and Implementation plan

The intrinsic linkage of maize to Naga food basket makes it mandatory for any intervention to visualise

and negate scenarios wherein production may be adversely affected. These should include both short-

term and long-term fallouts. Further, very few scientific studies have been conducted on maize in

Nagaland. No such scientific exercise could be identified in the project districts of Tuensang and Peren

during the study. In this light, the safest interventions are those that don’t look at introducing drastic

change in existing practices but identify scope for production enhancement by plugging the gaps in the

current systems. The most prominent gaps are inadequate agricultural credit and poor market linkage.

Production enhancement can be taken up on individual fields wherein inputs can be provided to select

farmer clusters at village level.

Economics of maize cultivation

Calculations have been done for 1 acre of land. Cost of various inputs and outputs are based on

information collected from villagers, market players, research organisations (like SARS & KVK)

and agriculture department.

The rate of interest paid by farmers is 2% per month for SHG loans.

Loan duration is assumed to be three months.

13

Currently SARS doesn’t undertake extensive field study and trials in Tuensang and Peren districts.


35 MART, Noida

The costing is presented here under for 1 year of operation. This is based upon the costing provided by the

Jt. Director, State Agriculture Station, Mokokchung.

Table-15: Economics of maize cultivation

Particulars Unit Quantity

Unit

Price

(Rs)

Total

Amount (Rs)

Income

Sale of maize Kg 1800 6.5 11700

Cost

Hired Labour

Ploughing Labour day 2 200 400

Sowing Labour day 2 150 300

Weeding Labour day 3 150 450

Inputs

Urea Kg 52 10 520

Super Phosphate (SSP) Kg 100 12 1200

MOP Kg 20 12 240

Seed Kg 8 15 120

Transportation to market Lump sum 1 400 400

Misc Lump sum 1 500 500

Total running cost

4130

Income

7570

Maintenance cost of equipment

(Depreciation)

200

Profit before interest

7,370

Interest (2%/month for 3 months)

307.8

Net profit

7,062

ROI

137.66%

Table-15 A: Economics for maize cultivation – Sensitivity Analysis

Parameters Revenue (Rs) Operating Expense (Rs)

Profit before interest & depreciation (Rs)

Operating expenses go up by 10% 11700 8327 3373

Operating expenses fall by 10% 11700 6813 4887

Production goes up by 10% 12870 7570 5300

Production falls by 10% 10530 7570 2960

Constraints-Solution Matrix

Table-16: Constrains-Solution Matrix for Maize cultivation

Factor Constraints faced by small farmers Critical intervention points

Input

sourcing

Seeds available with the farmers are of

indigenous variety with low yield and

affects productivity.

Identify suitable improved varieties

of seeds and fertiliser through local

agriculture research stations.


36 MART, Noida


Fertilizers are not used and knowhow

of application is not available to the

farmers.

The supply of improved seeds and

fertilisers by the state government in

Peren and Tuensang is low

Preference must be for local high

yield germplasm.

Identify suppliers of the seeds and

fertilisers and create linkages

Organise farmers groups or SHGs to

procure inputs collectively from the

suppliers

Train farmers in improved

agriculture practices for proper

utilisation of the inputs.

Production

practices and

technology

used

Farmers don’t invest in land

development as the ownership rights

are not explicitly spelt.

Traditional practices are still being

followed as extension activities

achieved the desired momentum and

reach.

Youths don’t look up to agriculture as

a viable economic activity

Arrange farmers’ meets in

association with the agriculture

scientists in the state.

Discuss land ownership and land

development issues with the village

councils and village development

boards

Identify proper seed varieties

suitable to local conditions

Access to

finance

Agriculture financing is largely

restricted to only a few locations like

Dimapur, Jalukie, Phek and

Mokokchung. Both Peren and

Tuensang have poor bank coverage.

Though SHGs are present in many

villages agriculture financing is not a

priority. Further, the interest rate

charged is 2% per month which is

quite high.

Build capacities of the SHGs for

lending to farmers through

sensitisation and capital infusion

Form common interest groups of

farmers for linkages with financial

institutions like banks and state

government corporations.

Market access Farmers sell their produce mostly

through retail.

The sale volume is low hence incentive

to carry the produce to higher markets

is not present

Collectivise the produce at the village

level through farmer groups or SHGs

and sell it in the larger towns for

better price realisation and lower

transportation costs.

Govt. policies

and external

ecosystem

Disruption in social life due to

insurgent activities and charging of

multiple taxes by these groups is a

major bottleneck.

Inter-tribe quarrels also lead to

disruption in economic activities

including agriculture.

Play an advocacy role at the state

level involving all the tribal Hohos

and state machinery for overcoming

these bottlenecks


37 MART, Noida

Implementation plan for maize cultivation

Table-17: Implementation plan for Maize cultivation

Key steps Activities to be performed by project

Phase I – Pre-launch activities (Preparedness at the community level)

Cluster selection Identify farmers in villages based on cluster approach for initiating

improved maize cultivation

Identify specific locations within the project area based on the agro-

ecological parameters in consultation with agriculture research stations in

the state.

Social mobilization

and institution

building

Generate interest within the community by share the benefits of

undertaking intensive maize cultivation through improved practices.

Develop farmers’ groups to work like a unit in the selected villages.

Larger number of farmers is to be integrated in the farmers’ group based

on performance of the early adopters through demonstration effect.

Initiate participatory discussion to arrive at consensus on roles and

responsibilities of members and frame rules of the farmers’ group.

Develop farmers’ association by federating the groups

Preparation of

business plan

Prepare a business plan for maize cultivation in consultation with the

farmers, technical experts and financers. The plan should detail economics

of the activity, input sourcing, market linkages, technology and production

practices. Further, scope for convergence with supportive schemes from

government and other agencies should be scouted.

Capacity building Identify agencies (government and private) and local best practitioners for

need-based training at the community level.

Training on improved practices best on the method of adoption best

practices is to be imparted to the cultivators.

Leadership training is to be arranged for the group members and leaders

of the association.

Business and marketing training (costing, pricing, accounting, sales and

marketing etc.) needs to be organised for the members. The focus should

be on participatory mode of content delivery.

Phase II - Launching of the activity

Backward linkages Guide farmers to procure inputs collectively towards lower of costs

Enlist inputs suppliers to ensure quality and timely availability

Systematize management of technical training for farmers

Establish finance support for maize cultivation


38 MART, Noida

Production Guide and handhold farmers to implement best practices

Develop clarity of roles for group members through an iterative process

Set quality standards and standard practice protocol at production level to

achieve efficiency, higher productivity and lower costs

Develop MIS for tracking of production process and quality control

Market access Identify markets and create list of traders with contact details.

Encourage farmers to do simple value addition such as sorting and grading

to realise better prices.

Handhold the farmers in collectivisation and marketing of produce

Phase III – Up-scaling

Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate performance

of farmer groups.

Identify gaps and suggest corrective actions

Assist farmers to better access benefits of local extension activities

Strengthening

Institution

Facilitate farmers’ group and association to upscale and sustain the

initiative

Invest in regular capacity development of the group and association

Create village level cadres to extend technical and marketing inputs to

community at village level.

Provide handholding and technical support to farmers’ association

Possibility for Partnership for Maize Cultivation

There is scope and requirement for tying up agencies from government and private sector for carrying out

the envisaged project activities. The major areas that require support from such external agencies are

technical know-how, community organisation, finance and market linkage. Some entities that may be

partnered by the project during implementation are as follows.

State Directorate of Agriculture,

SARS, Mokokchung

KVK-Tuensang,

ICAR-Jharnapani

NGOs



39 MART, Noida

4.4 Potato cultivation Value Chain

Potato is the major non grain crop in the world. It is a staple diet in many countries and also ranks very

high in priority in the Indian food system. Potato has received intense scientific focus and numerous

varieties suited to different agro-climatic regions have been developed. It occupies a unique position in

our food basket due to its versatility, meeting varying requirements of nutrition and palate of diverse

cultures. It also meets the requirement of a good animal fodder. It is easily storable and has a long shelf

life.

World production of potatoes was over 320 million tonnes in 2007. Around 2/3 of this production was

consumed by people while the rest was used as animal feed and potato starch. Potato starch finds major

use in pharmaceuticals, adhesives, textiles, and in wood & paper industries. India ranks third in the world

contributing around 7.5% to the global potato production. The yield per hectare in India is low at 17.86

MT compared to European countries at ranges between 30-40 MT per hectare. Given the large population

base the export potential of potato in India is low due to low surplus production. Only 7200 MT

(accounting for 0.5% of world’s potato export) potato is exported by India. However, India has a low per

capita consumption at 26 kg per annum compared to 165 kg in West Germany and 86 kg in other

European countries. The scenario is changing with growing popularity of potato chips in the snack foods

sector. In this space Frito-lay is the market leader followed by Haldiram. Even companies like ITC and

Amul belonging from diverse parent businesses are joining this space. Therefore the scope of development

potato market both within India and outside is large with significant scope for enhancing productivity.

Potato is well adapted to the agro-climatic situations found in Nagaland. The local variety is small and

almost round in shape and yields around 0.7-1 Kg per plant. Preference for local potato is high among

villagers town dwellers prefer the larger varieties brought from other states. Potato is mostly cultivated

during January and June period. However, many locations are favourable for cultivating potato during a

subsequent season from May to December. According to the villagers, observed yield of potato per plant is

around is around 2 Kg for high yield varieties. As per the data available from the Ministry of Agriculture,

Government of India, overall production of potato decreased from 61,000 MT in 2002-03 to 43,540 MT

in 2003-04. This is associated to a concurrent fall in acreage (5450 in 2002-03 to 5110 in 2003-04) and

yield (11.254 MT/Ha in 2003-03 to 8.298 MT/Ha in 2003-04). The state government is already focussing

on popularising potato cultivation in the state.

Rural households cultivate potato in kitchen garden mostly for self-consumption. In the study villages

only 10% of the production is sold. However, in a few villages the state horticulture department has

popularised and provided support (potato and storage facility) for potato cultivation and it is done on

commercial scale.

Production clusters

Potato is grown throughout the state. Intensity of cultivation in Tuensang is higher than in Peren.

Productivity is also better in Tuensang compared to Peren.


Potato cultivation is totally rain-fed and organic in Nagaland. It is mostly done in kitchen garden and only

those villages that do it on commercial scale cultivate it on jhum land. Since farming is restricted to one

cropping season (March–September) due to scarcity of water, intensive cultivation of any single crop by a

household is not found. Extensive cultivation of potato is not done by most of the household.

Potato is sold right after harvesting without any post-harvest processing is done. Even cleaning, sorting

and grading are rudimentary.


40 MART, Noida

Value chain map

Most of the potato requirement in Nagaland is met through imports.

Potato is consumed as a vegetable in curries. It is seldom used for feeding pigs.

Villagers don’t prefer to sell the produce and most sales are distress sales.

In the districts, most of the potato sold comes from outside the state. Grocers and vegetable vendors

retail potato at Rs. 10/Kg.

Traders based in Tuensang bring potato from Jorhat market and sell it to local traders in the district

towns like Longkhim, Chare, Noklak, Shamator and Chessore. Traders in Jalukie and Peren bring

potato from Dimapur at Rs. 10/Kg and sell it at Rs. 13 in the local market.

Farmers selling the locally grown potato sell their produce at Rs. 20-25/Kg either in the village or the

nearby markets.


There is a possibility of processing potatoes into potato starch, potato chips etc. However, setting up such

processing units at the village level would require sufficient entrepreneurial skills among poor, marketing

and technical skills, and ensured market linkages with bulk buyers to sustain such units. The demand at

the village level is low and marketing of products outside would require successful marketing

interventions such as proper packaging and branding. It is, therefore, suggested that for first couple of

years potato cultivation should encouraged focussing on productivity enhancement and market linkages

as production of potatoes in the state is less than its demand. After couple of years project can identify few

individuals with entrepreneurial skills to experiment setting up few processing units. Project staff with

marketing skill could be involved for conducting the detail feasibility study before setting up such units.

Figure-7: Potato value chain map


41 MART, Noida


Farmers













Thus, it can be said that that the only difference between a large farmer and a subsistence farmer in

Nagaland is in terms of the area cultivated and not in terms of practices or productivity.


The farmers use the locally grown potato as supplies of improved varieties of planting material from

government and private sources are minimal.

Agriculture practices of the Nagas are organic in nature. Farmers don’t use fertilisers or pesticides. Farm

yard manure is seldom used. Further the approach roads are inadequate for taking heavy machineries to

the field. Agriculture activities are mostly carried out through handheld implements and harvested

produce is carried in baskets as head loads to the nearest motorable road.

However, occasional planting material supplies (improved variety) by the government or loans from

SHGs are available for farmers. Farmers voice the requirement for credit especially for engaging labour.

Banks are not able to fulfil the requirement as the current land tenure system act against issue of land as

collateral by the farmers. The situation is further complicated by the hindrances posed by insurgent

groups that limit the reach of banks and hamper services for the farmers in the interior areas of the

districts.

Wholesalers

Large scale trading in potato is only found in the 4 major urban agglomerations i.e. Dimapur, Kohima,

Mokokchung and Wokha. Wholesalers import potato from Uttar Pradesh, Bihar and West Bengal via

Jorhat. The preference for buying local produce is low among wholesalers in Dimapur & Mokokchung as

they have easy access to Assam and the local produced is not competitively priced.

Wholesalers try to avoid inter-district procurement of produce and sale of goods due to the hindrances

posed by the insurgents and the tribal factions. There are numerous taxes and levies imposed by the

insurgent that render the business unprofitable and risky. The prevalent practice is to get into a

negotiated settlement wherein the traders pay agreed sum of money to these groups at regular intervals

(like monthly, quarterly or yearly). Therefore, activities of a wholesaler are restricted within a district be it

for procurement of produce or sale of products.

Retailers

Women of the Naga household are involved in sale of the agricultural produce. They carry goods to

markets either as head load, public transport or by collectively hiring a vehicle depending upon location


42 MART, Noida

and individual financial capacity. Potato is sold mostly as in a bunch of 6-8 potatoes priced at Rs. 10.

These sales take place mostly in nearby towns and it is rare to see villagers carry them to larger towns in

distant locations.

It is rare to find people engaged in exclusive retailing activities as villagers feel that by retailing their

produce they realise a higher return compared to selling to a retailer. In the district towns, fulltime

retailers stick to selling products (rice, potato, oil, spices and other grocery items including FMCG)

coming from outside the state and get to purchase products from the villagers rarely. However, few

traders especially women from Peren and Jalukie towns collect vegetables from nearby villages and sell it

at the weekly (Wednesday) market in Dimapur. These women generally carry merchandise worth Rs.

6000 – Rs. 10000 per person. A group of 2-3 retailers hire one vehicle for carrying their produce to

Dimapur.

Transporters

Transport infrastructure is poorly developed in Nagaland. The major constraints are hilly terrain, lack of

proper road connectivity, inadequate presence of public transport (especially government sector) and

thinly dispersed population providing less number of travellers in each route resulting in sub-optimal

utilisation of vehicles. Long distance connectivity is poor and time consuming.

Transport business (goods and passenger carrier) is mostly run by individuals within the state except for a

few bus services run by private agencies based in Dimapur. The vehicles are mostly self-driven by the

entrepreneur with occasional vehicle being run by a hired driver. Running cost of vehicles is high due to

difficult terrain and poor road conditions. They also feel pressure from the insurgent groups and tribal

factions who demand passage charges and often impose bandhs. Therefore, transport is costly in

Nagaland and acts as a major hindrance for establishment of business linkages.


Productivity enhancement and collectivisation for sale are the major areas of intervention areas for the

project. Productivity enhancement is the most important under the current situation whereby rural

households would have marketable surplus. The cultivators have to be trained on suitable advances in

agricultural practices and provided input support for achieving higher productivity. Ways & means of

irrigation need to be identified for cultivation on jhum lands so that the production can be ensured even

during the dry season. Proper crop study needs to be under taken in association with the State Agriculture

Research Station (SARS), Mokokchung and the respective Krishi Vigyan Kendras in the districts. This

will help in proper selection of seeds and determine measures for augmenting soil fertility.


The Agriculture Technology Management Agency (ATMA), Mokokchung has identified potato as one

of the important crops to be promoted in the state. The suitability of potato to Nagaland is well

established as it has been cultivated for over 50 years with encouraging results. The hilly terrain with

low soil moisture is naturally suited to the crop.

Nagas have traditional farming skills and potato is universally cultivated in the state.




Market feasibility

Nagaland is a net importer of potato. The imports are especially for the districts having proper

connectivity with Assam.


43 MART, Noida

Potato is an important part of the Naga diet and is also used as pig fodder occasionally.


The feasible unit size for potato cultivation at household level is 0.5 acre. The cost of investment for

intensive potato cultivation for 0.5 acre is Rs. 17,656. The overall income is Rs. 40,0o0 with a benefit

to cost ratio of 2.40 and return on investment of 125.08%.


The intrinsic linkage of potato to Naga food basket makes it mandatory for any intervention to visualise

and negate scenarios wherein production may be adversely affected. These should include both short-

term and long-term fallouts. Further, very few scientific studies have been conducted on potato in

Nagaland. No such scientific exercise could be identified in the project districts of Tuensang and Peren

during the study. In this light, the safest interventions are those that don’t look at introducing drastic

change in existing practices but identify scope for production enhancement by plugging the gaps in the

current systems. The most prominent gaps are inadequate agricultural credit and poor market linkage.

Popularisation of potato cultivation at a commercial scale needs to be undertaken with an eye on

productivity enhancement. This activity needs to be taken up at individual farmer level wherein inputs

can be provided to select farmers’ clusters at village level.

Economics of potato cultivation

Calculations have been done for 0.5 acre of land. Cost of various inputs and outputs are based on




Loan duration is assumed to be three months.



Table-18: Economics for potato cultivation

Particular Unit Quantity Unit Price

(Rs)

Total Amount

(Rs)

Income

Sale of potato Kg 5000 8 40000

Cost

Labour

Ploughing & raising ridges Labour day 8 200 1600

Manure and fertliser application Labour day 0 200 0

Sowing Labour day 3 150 450

Interculture operation weeding Labour day 7 150 1050

Harvesting Labour day 0 150 0

Cleaning & sorting Labour day 4 150 600

Inputs

Potato for planting material Kg 320 30 9600

FYM Kg 1600 1.25 2000

Urea Kg 12 10 120

Super Phosphate (SSP) Kg 16 12 192

MOP Kg 12 12 144


44 MART, Noida

Particular Unit Quantity Unit Price

(Rs)

Total Amount

(Rs)

Transportation to market Lump sum 1 400 400


Total running cost 16656

Income 23344

Maintenance cost of equipment

(Depreciation)

200

Profit before interest 23,144

Interest (2%/month for 3 months) 6% 17,656 1059.36

Net profit 22,085

ROI 125.08%

Table-18A: Economics for potato cultivation – Sensitivity Analysis








Table-19: Constraint-Solution Matrix for potato cultivation Factor Constraints faced by small farmers Critical intervention points

Input

sourcing




Fertilizers are not used and knowhow of

application is not available to the

farmers.

The supply of improved potato and

fertilisers by the state government is

restricted to few pockets in Peren and

Tuensang.

Identify suitable improved varieties of

seeds and fertiliser through local


Preference must be for local high yield

germplasm.

Identify suppliers of the seeds and

fertilisers and create linkages



suppliers

Train farmers in improved agriculture

practices for proper utilisation of the

inputs.

Production Farmers don’t invest in land Arrange farmers’ meets in association


45 MART, Noida


practices

and

technology

used

development as the ownership rights are

not explicitly spelt.


followed as extension activities achieved

the desired momentum and reach.

Youths don’t look up to agriculture as a

viable economic activity

with the agriculture scientists in the

state.




boards

Identify proper seed varieties suitable

to local conditions

Access to

finance

Agriculture financing is largely restricted

to only a few locations like Dimapur,

Jalukie, Phek and Mokokchung. Both

Peren and Tuensang have poor bank

coverage.




charged is 2% per month which is high.








Market

access

Farmers sell their produce mostly

through retail.

The sale volume is low hence incentive to

carry the produce to higher markets is

not present



and sell it in the larger towns for better

price realisation and lower


Govt.

policies

and

external

ecosystem

Disruption in social life due to insurgent

activities and charging of multiple taxes

by these groups is a major bottleneck.




Play an advocacy role at the state level

involving all the tribal Hohos and state

machinery for overcoming these

bottlenecks

Implementation plan for potato cultivation

Table-20: Implementation plan for potato cultivation Key steps Activities to be performed by project


Cluster

selection

Identify farmers in villages based on cluster approach for initiating improved potato

cultivation

Identify specific locations within the project area based on the agro-ecological

parameters in consultation with agriculture research stations in the state.


46 MART, Noida


Social

mobilization

and

institution

building

Generate interest within the community by share the benefits of undertaking

intensive potato cultivation through improved practices.


Larger number of farmers is to be integrated in the farmers’ group based on

performance of the early adopters through demonstration effect.

Initiate participatory discussion to arrive at consensus on roles and responsibilities

of members and frame rules of the farmers’ group.


Preparation

of business

plan

Prepare a business plan for potato cultivation in consultation with the farmers,

technical experts and financers. The plan should detail economics of the activity,

input sourcing, market linkages, technology and production practices. Further,

scope for convergence with supportive schemes from government and other

agencies should be scouted.

Capacity

building

Identify agencies (government and private) and local best practitioners for need-

based training at the community level.

Training on improved practices best on the method of adoption best practices is to

be imparted to the cultivators.

Leadership training is to be arranged for the group members and leaders of the

association.

Business and marketing training (costing, pricing, accounting, sales and marketing

etc.) needs to be organised for the members. The focus should be on participatory

mode of content delivery.


Backward

linkages

Guide farmers to procure inputs collectively towards lower of costs



Establish finance support for potato cultivation



Set quality standards and standard practice protocol at production level to achieve

efficiency, higher productivity and lower costs



Encourage farmers to do simple value addition such as sorting and grading to

realise better prices.



47 MART, Noida



Monitoring

and

evaluation

Set up regular follow up and monitoring system to evaluate performance of farmer

groups.



Strengthening

Institution

Facilitate farmers’ group and association to upscale and sustain the initiative


Create village level cadres to extend technical and marketing inputs to community

at village level.


Possibility for Partnership for Potato Cultivation






SARS, Mokokchung

KVK-Tuensang,

ICAR-Jharnapani

NGOs



48 MART, Noida

4.5 Soybean cultivation Value Chain

Beans are a major source of dietary protein and edible oil. Beans are next in importance only to pulses as

an abundant and cheap source of protein. India ranks among the top five producers of beans in the world.

There are numerous varieties of beans of which soybean is the major variety. It is a versatile product that

can be processed into various edible forms meeting our varying food habits and nutritional requirements.

It is also useful as animal feed component. Once dried, beans are easily storable and have a long shelf life.

India is the fifth largest producer of soybeans in the world, with average production of 4,809 MT of

soybeans. Average consumption in India is 4,812 MT of soybeans, giving them the rank of sixth largest

consumer of beans in the world. India is primarily a closed economy in the soybean arena. India's imports

average a mere 8 MT with no exports. The Majority of all the soybeans in India are grown in the province

of Madhya Pradesh. Alone, this province produces 81 percent of all the soybeans grown in India. Of the

total production, 10-12 per cent is directly consumed while the rest is crushed to derive soy meal and soy

oil. Over the years, India's consumption of soybean oil has been steadily increasing on account of

population increase and wider acceptability. More recently, domestic consumption and export of soybean

meal has shown notable improvement. More importantly, India faces shortage in edible oils and

increasing acceptability and usage of soybean oil is seen contributing towards higher demand and

production of soybean. Besides Indian soybean meal has a ready market in the Asian countries and

soybean meal exports are expected to cross 3.5 million tonnes in the current season. This hopefully will

support larger production in India.

It is a major source of edible oil ranking third among the nine major oilseeds in India. It contributes

nearly 25% of the edible oil production in the country. The seed to oil conversion is around 18% by weight.

The crushed seed can be converted to soya meal (conversion rate of around 73% by weight) and hull

(conversion rate of around 8% by weight). Actual waste is very low (1% by weight). Protein content in

soybean is over 40% that is among the richest source of plant protein. India is the net importer of Soybean

Oil. The imports of Soybean Oil have increased from 12% in 2007/08 to 15% in 2009/10 of the total edible

oil imports in India. India’s Soybean Oil production declined from 1.45 mn tons in 2007/08 to 1.1 mn tons

in 2009/10. On the other hand consumption of Oil has increased from 2.3 mn tons in 2007/08 to 2.5 mn

tons in 2009/10.

Naga households utilise beans extensively in cooking. They are used both in green form and also as dried

seeds. Soybean is the most preferred bean among the Nagas. The preferred consumption is in fermented

form called Akuni14 locally. Per hectare yield of soybean has reduced from 1600 Kg to 1200 Kg between

2004-05 and 2006-0715. Consequently total oilseed yield in Nagaland has reduced from 926 Kg/ha to 896

Kg/ha between 2004-05 and 2006-0715. Conversion of soybean seed to oil couldn’t be identified during

the study.

Rural households cultivate soybean mostly for self-consumption. In Peren, soybean is cultivated for self-

consumption only while in Tuensang most soybean cultivating household sell over 50% of the production.

Production clusters

Soybean is grown throughout the state. Cultivation of soybean is done on a commercial scale in Tuensang

while it is done for domestic consumption only in Peren. However, only small patches of soybean

cultivation are found in the plains of Jalukie in Peren.


14

Paste of boiled and fermented soybean that is added in curry or had with rice 15

Agricultural Statistics at a Glance 2009, Department of Agriculture, Government of India


49 MART, Noida

Soybean cultivation is totally rain-fed and organic in Nagaland. It is extensively done only on jhum land

and not grown on plain lands or terraces. Soybean is grown as intercrop for upland paddy or as one of the

crops under mixed cropping pattern in jhum land. It is also cultivated on lands after maize has been

harvested. Cultivation volume is small (sowing 100-200 g seeds) in Peren. Some households take up such

small scale cultivation in the kitchen garden if adequate space is available. In Tuensang, the scale of

cultivation is larger with average sowing of 2 Kg seed. The farmers get yield of 15-16 Kg for each Kilogram

of seed planted.

The season for soybean is from July to December. The pods are allowed to dry on the plant and shelled in

the field. Dry beans are stored (mostly in bamboo containers) in the households as the quantity produced

is low.

Major usage and by Products

Soybean is a preferred accompaniment for most Naga dishes including pork, chicken and fish

preparations. It is boiled, fermented and crushed before being used in the dishes.

Soybean is useful for preparing soy milk and tofu16 that are healthy alternative to cow milk and paneer17.

One tofu processing unit was found in Dimapur. The produce is mostly sold among the non-Naga

population in Dimapur. Naga households don’t have a liking for milk or milk products and hence don’t

use tofu or soy milk. Usage of soybean for oil extraction and production of soy meal and hull was not

found during the study.

Value chain map

Soybean is consumed as an accompaniment and used in preparing vegetable and meat dishes. A tin of

soybean weighs around 20 Kg and is priced at Rs. 30/Kg at village level.

16

A product akin to pressed cottage cheese 17

Pressed cottage cheese made by processing milk and considered a delicacy in India

Figure-8: Soybean value chain map


50 MART, Noida

Villagers prefer to sell the produce at village level as profitability at village and towns are almost same.

This because of difficulty in transportation that is time consuming and costly reducing the benefits of

sale at distant locations.

The market situations in Peren and Tuensang are different due to the production and supply

differences. In Peren, villagers rarely sell soybean. Sale if any, mostly take place within the village.

Rarely producers bring soybean to local towns or Dimapur for sale. The quantity brought for sale to

local towns is low (10 Kg). Generally, the whole of it is sold off through retail; if any leftover is sold to

the traders in the town. Traders buy the product at a discount of around 30-40% of the retail selling

price which is around Rs. 35/Kg. In Tuensang, around 50% households in the studied villages sell

soybean. Sale is mostly in bulk and price is around Rs. 30/Kg

There is an established sales channel through which soybean is exported from the state. Aggregators at

district towns collect the produce and sell it to traders in Jorhat; who in turn sell it to traders in other

parts of India mostly northern India.

There is no value addition to soybean like oil extraction and soy meal production in Nagaland.


There is a possibility of processing soybean in soy milk, tofu, soybean oil and also as an additive in into pig

feed exist. However, setting up such processing units at the village level would require sufficient

entrepreneurial skills among poor, marketing and technical skills, and ensured market linkages with bulk

buyers to sustain such units. The demand for tofu and soy milk is not much in the local and nearby towns.

Further, setting up soybean oil processing and pig feed manufacturing units cannot be justified by the low

demand at the village level and marketing of products outside would require successful marketing

interventions such as proper packaging and branding. It is, therefore, suggested that soybean cultivation

should be encouraged focussing on productivity enhancement and market linkages as production of maize

in the state is less than its demand. After a couple of years project can identify few individuals with

entrepreneurial skills to experiment setting up few processing units. Project staff with marketing skill

could be involved for conducting the detail feasibility study before setting up such units.


Farmers














There are no external input supplies for soybean cultivation. Farmers keep their seeds for sowing in the

subsequent years and plant varieties only. The production process is organic in nature. Agriculture


51 MART, Noida

activities are mostly carried out through handheld implements and harvested produce is carried in

baskets as head loads to the village or nearest motorable road.

Wholesalers

Large scale trading in soybean mostly involves export of the produce from the state. The major locations

of these wholesalers are Mokokchung and Dimapur. They visit villages or district town to collect soybean

in small quantities from cultivators or local aggregators (traders in district towns). A few small traders in

Tuensang occasionally aggregate and sell soybean directly to traders in Jorhat. In Peren, soybean

wholesale or aggregation was not found.

Trading suffers due to the interference of insurgents who impose taxes and levies on goods movement in

the state. The prevalent practice is to get into a negotiated settlement wherein the traders pay agreed sum

of money to these groups at regular intervals (like monthly, quarterly or yearly).

Retailers

Women of the Naga household are actively involved in sale of the agricultural produce. Soybean sale

mostly happens within the village or nearby market sheds on the major roads. They carry soybean to town

markets either as head load or public transport or by collectively hiring a vehicle depending upon location

and individual financial capacity. Soybean is sold mostly in approximate quantity of one Kg priced at Rs.

35.

Transporters

The aggregators and wholesalers arrange for transportation of the collected produce to the larger towns.

Generally small goods carriers are employed by these people for this purpose. Transport infrastructure is

poorly developed in Nagaland. The major constraints are hilly terrain, lack of proper road connectivity,

inadequate presence of public transport (especially government sector) and thinly dispersed population

providing less number of travellers in each route resulting in sub-optimal utilisation of vehicles. Long

distance connectivity is poor and time consuming.


Productivity enhancement and collectivisation of soybean for bulk sale are the major areas of intervention

areas for the project. Productivity enhancement is the most important under the current situation

whereby rural households would have marketable surplus and achieve economies of scale. The cultivators

have to be trained on suitable advances in agricultural practices and provided input support for achieving

higher productivity.


The suitability of soybean to Nagaland is well established as it has been cultivated historically with

encouraging results.

Nagas have traditional farming skills and maize is universally cultivated in the state.




Market feasibility

Nagas use soybean liberally in their food preparation hence consumption at household level is quite

high in both rural and urban areas.

Soybean is a good source of protein for pig feed and can be used as a replacement for low nutrition

local fodder.


52 MART, Noida

The production of soybean is mostly for domestic consumption and its cost is quite high in the villages

also.


The feasible unit size for soybean cultivation at household level is 1 acre. The cost of investment for

intensive soybean production for 1 acre is Rs. 8,340. The overall income is Rs. 16,800 with a benefit to

cost ratio of 2.29 and return on investment of 105.03%.

Soybean shows lower risk of crop failure and doesn’t need any fertiliser inputs.


Soybean is well suited to the agro-ecological systems in Nagaland and most rural households cultivate it.

The project should focus on promoting soybean cultivation at a commercial scale. The project should

identify scope for production enhancement by plugging the gaps in the current systems and introducing

better seed varieties. The prominent gaps are practice of traditional agriculture system, inadequate

agricultural credit and poor market linkage.

This activity needs to be taken up at individual farmer level wherein inputs can be provided to select

farmers’ clusters at village level.

Economics of Soybean cultivation

Calculations have been done for 1 acre of land. Cost of various inputs and outputs are based on




Loan duration is assumed to be six months.



Table-21: Economics for soybean cultivation Particular Unit Quantity Unit

Price(Rs)

Total

Amount(Rs)

Income

Sale of soybean Kg 480 35 16800

Cost

Labour

Land preparation Labour Day 8.8 200 1760

Sowing Labour Day 4 150 600

Cleaning and weeding Labour Day 12 150 1800

Harvesting & threshing Labour Day 4.8 150 720

Packaging and bagging Labour Day 3 200 600

Inputs

Seed cost Kg 24 40 960

Transportation to nearby market Lump sum 1 400 400


Total running cost 7340

Income 9460

Depreciation 200


53 MART, Noida

Profit before interest 9,260

Interest (2% per month for SHG loan) 6% 8,340 500.4

Net profit 8,760

ROI 105.03%

Table-21A: Economics for soybean cultivation – Sensitivity Analysis








Table-22: Constraints-Solution Matrix for soybean cultivation Factor Constraints faced by small farmers Critical intervention points

Input

sourcing




Identify suitable improved varieties of

seeds in consultation with local


Preference must be for local high yield

germplasm.

Identify suppliers of improved seeds

and create linkages



suppliers

Train farmers in improved agriculture

practices for proper utilisation of the

inputs.

Production

practices

and

technology

used


development as the ownership rights are

not explicitly spelt.


followed as extension activities achieved

the desired momentum and reach.

Youths don’t look up to agriculture as a

viable economic activity

Arrange farmers’ meets in association

with the agriculture scientists in the

state.




boards

Identify proper seed varieties suitable

to local conditions

Access to

finance

Agriculture financing is largely restricted





54 MART, Noida




coverage.




charged is 2% per month which is high.






Market

access

Farmers sell their produce mostly

through retail.

The sale volume is low hence incentive to

carry the produce to higher markets is

not present



and sell it in the larger towns for better

price realisation and lower


Govt.

policies

and

external

ecosystem

Disruption in social life due to insurgent

activities and charging of multiple taxes

by these groups is a major bottleneck.




Play an advocacy role at the state level

involving all the tribal Hohos and state

machinery for overcoming these

bottlenecks

Implementation plan for soybean cultivation

Table-23: Implementation plan for soybean cultivation Key steps Activities to be performed by project


Cluster

selection

Identify farmers in villages based on cluster approach for initiating improved

soybean cultivation

Identify specific locations within the project area based on the agro-ecological

parameters in consultation with agriculture research stations in the state.

Social

mobilization

and

institution

building

Generate interest within the community by share the benefits of undertaking

intensive soybean cultivation through improved practices.


Larger number of farmers is to be integrated in the farmers’ group based on

performance of the early adopters through demonstration effect.

Initiate participatory discussion to arrive at consensus on roles and responsibilities

of members and frame rules of the farmers’ group.


Preparation

of business

plan

Prepare a business plan for soybean cultivation in consultation with the farmers,

technical experts and financers. The plan should detail economics of the activity,

input sourcing, market linkages, technology and production practices. Further,

scope for convergence with supportive schemes from government and other


55 MART, Noida

agencies should be scouted.

Capacity

building

Identify agencies (government and private) and local best practitioners for need-

based training at the community level.

Training on improved practices best on the method of adoption best practices is to

be imparted to the cultivators.

Leadership training is to be arranged for the group members and leaders of the

association.

Business and marketing training (costing, pricing, accounting, sales and marketing

etc.) needs to be organised for the members. The focus should be on participatory

mode of content delivery.


Backward

linkages

Guide farmers to procure inputs collectively towards lower of costs






Set quality standards and standard practice protocol at production level to achieve

efficiency, higher productivity and lower costs



Encourage farmers to do simple value addition such as sorting and grading to

realise better prices.



Monitoring

and

evaluation

Set up regular follow up and monitoring system to evaluate performance of farmer

groups.



Strengthening

Institution

Facilitate farmers’ group and association to upscale and sustain the initiative


Create village level cadres to extend technical and marketing inputs to community

at village level.



56 MART, Noida

Possibility for Partnership for Soybean Cultivation






SARS, Mokokchung

KVK-Tuensang,

ICAR-Jharnapani

NGOs



57 MART, Noida

4.6 Pig rearing Value Chain

Pork is the most widely eaten meat in the world, providing about 38 percent of daily meat protein intake

worldwide, although consumption varies widely from place to place. Pork consumption is almost

negligible in India. Among the various livestock species, piggery is most potential source of meat

production and more efficient feed converters after the broiler, i.e. they produce more live weight gain

from a given weight of feed than any other class of meat producing animals, except broilers. Besides, Pig

farming requires small investment on buildings and equipment. Pork is most nutritious with high fat and

low water content and has got better energy value than that of other meats.

Pork consumption is negligible in India, with the exception of the north east. As per capita income of

individuals rises, they tend to spend on improving their lifestyle and food consumption habits. In the

European Union, 42.6 kg pork is consumed per person every year, while in the US, 29.7 kgs are

consumed. India’s consumption levels (currently 5.35 pigs/ annum) are so low that it can only be

explained by low incomes and high relative prices. The total world consumption of meat is estimated to be

of the order of 240 million tons per annum and India’s share of consumption is only 2.2%. However, the

scenario is quite different in Nagaland where demand for pork is quite high. The state is a net importer of

the pigs mostly supplied by farms in Uttar Pradesh and Bihar. Therefore the market for pigs produced in

Nagaland has to be found within the state where its demand is high and supply low.

Naga households are highly dependent on meat products and poultry is one of the easiest sources of meat

for these rural households and every household engages in backyard poultry farming. Pork is a meat of

choice among the Nagas. Almost all rural households undertake piggery in small scale rearing 1-2 pigs.

The importance of pig assumes greater significance due to its association with ceremonial sacrifices.

Technical Feasibility

Climate in Nagaland is suited to pig farming

Directorate of Animal husbandry has rich experience in promotion of pig rearing

Veterinary department officers are present in every district & can provide handholding support

The community has the experience of rearing local and mixed breeds of pigs & can adapt to advanced

practices easily.

The Facilities and infrastructure available for supply of inputs, veterinary aid, marketing,

training/experience of the beneficiary

Pigs are prolific breeders and produce a litter. Pregnancy is possible twice a year.

Market Feasibility

There is a large demand for pork in major towns like Dimapur, Kohima and Mokokchung most of

which is met through imports from Assam.

Ready market is also available in the districts where availability of pig is a constraint

Pig rearing is a short gestation activity and generates good returns in short term.

There is a clear preference for locally bred pigs.


The feasible unit size for pig rearing at household level is 5-10 pigs. The cost of investment for a 8 pig

unit in 2 sow and 6 fatteners configuration is Rs. 124,992. The overall income is Rs. 162,000 with a

return on investment of 30%.


58 MART, Noida

Soybean shows lower risk of crop failure and doesn’t need any fertiliser inputs.

Assumptions and Technical norms

Table-24: Assumptions for pig rearing

Gestation period 115 days

Weaning age 1 month

Successive pregnancy 30 days after weaning of piglets

Average no. of piglets per farrowing (litter size) 8 piglets per sow

Sale price of weaned piglets Rs. 2500 piglet

Cost of feed Rs. 15 per kg

Average body weight of adult sow 120 kgs

Sale price of adult pig for pork Rs. 100 kg

Productive life 5 years after sexual maturity

No. of farrowing during productive life 10 nos. per sow

Age of sexual maturity 11 months

Rearing Process in villages of Nagaland

In Nagaland, villagers rear pigs under confinement in small housing constructed of wood with tin roofing.

These are located near the kitchen. Most of the households rear mixed breeds. The propensity to rear

weaned piglets is high and farrowing units are very few in the villages. The supply of piglets is hence very

low and procurement is an issue.

Feed and water are the major requirements for pig rearing. Farmers follow stall feeding and supply

kitchen waste, leaves and weeds mixed with maize or yam. The fodder mix is boiled before serving. Only

the affluent households can afford concentrate feeds to supplement the local fodder. Farmers administer

antibiotics and anti-helminthic medicines for better upkeep of the pigs. The state government has

promoted swine flu vaccines that the farmers administer. However, the housing is not hygienic and affects

body growth. The pigs are mostly killed for domestic consumption and excess pork is sold within the

village at Rs. 110-Rs. 120/Kg. The age of slaughter is generally 1 year or above when they attain body

weight of 70-100 kg.

Though the preference for rearing crossbred pigs are high among the farmers when it comes to

consumption they prefer local breeds. The major constraints identified by the villagers for pig rearing are

finance, piglet procurement, feed procurement and water availability.

Value Chain

Pigs coming from other states weigh around 110 Kg while those available in the villages weigh

around 70-80 Kg

Pigs reared in the villages rarely come to the town markets. The rearing household slaughters the

pig on special occasions and sells the excess pork to the villagers.

Most of the pigs slaughtered in towns of Nagaland come from Dimapur. There are two major

wholesalers in Dimapur who procure pigs from other states mostly Bihar and Jharkhand.

The weight of pork sold is almost equal to the live weight as all parts of the pig are sold as part of

pork.

The sale of pork is high during the first fortnight of the month as affordability is high among the

salaried class. A pork seller in the major towns slaughters around 20-25 pigs in the first week of

the month that reduces to around 12 pigs in the last week.


59 MART, Noida

People don’t exhibit any preference towards particular cuts of pork hence there is no differential

pricing of pork based on the portion of meat. Therefore there is not value addition or meat

processing associated with pork in Nagaland.

Most households prefer to buy around 5 Kg of pork at a time in towns and consume it over a

number of days after drying and processing. However, in villages majority of the households can

afford to buy only 2-3 Kg of pork at a time.


There is a possibility of processing pork into prime cuts, sausages, ham and bacon. However there is no

demand for such products in the local market and setting up such processing units at the village level

would require sufficient entrepreneurial skills among poor, marketing and technical skills, and ensured

market linkages with bulk buyers to sustain such units. Further, such units are complex units that require

high technological inputs that don’t seem feasible in the current context of Nagaland. It is, therefore,

suggested that pig rearing should be encouraged focussing on productivity enhancement and market

linkages the state is a net importer of pigs by a huge margin.


Farmer

There is a clear disconnect between pig farmers in the villages and the pork market in the urban locations.

Pig rearing is done by rural households to meet their own consumption needs especially during the festive

seasons. There is hardly any commercial motive among the common farmers for pig rearing. Sale of live

pigs is rare among these households and is done mostly to meet immediate financial needs. Mostly mixed

local breeds are reared by these households as pure breeds are very hard to come by.

Figure-9: Piggery value chain map


60 MART, Noida

Pork Seller (Butcher)

Pork sellers operate only in town areas. They procure pigs from wholesalers in Dimapur and sell pork in

the towns. The pigs are procured by these sellers from Dimapur in small goods carriers. At a time, 10-12

pigs weighing around 100-120 Kg each are procured at Rs. 90/Kg live weight. Pork Sellers buy pigs from

villages only if there is a supply stoppage from Dimapur due to road blocks etc. Hence, there is no

established business linkage with the villagers unlike the wholesalers in Dimapur. The retail rate for pork

is uniform throughout Nagaland and is around Rs 120/Kg.

Wholesaler

Dimapur is the only wholesale business location for pigs in Nagaland. There are two major wholesalers

who procure pigs from other state mostly Bihar and Jharkhand. They have captive suppliers and farms in

these states for supply of pigs. The wholesalers don’t source live pigs from within the state.

Proposed Interventions

The project needs to develop a steady supply chain for quality piglets. They also need to invest to develop

a source for pig feed. The farmers need to be trained on advanced pig rearing practices and provided

support for building proper housing for the pigs. The farmers also need to be provided financial assistance

for procuring quality feed that forms around 80% cost of pig rearing. Finally, the project needs to identify

pork sellers in the urban locations and help in establishing market linkages for the farmers.


Table-25: Constraints-Solution Matrix for pig rearing

Factor Constraints faced by small and poor

Pig rearing farmers

Critical Intervention points

Input sourcing

and Production

Availability of adequate water and fodder

round the year.

Low productivity of local varieties.

Availability of good breed of piglets.

Lack of standardisation in feeding of Pig

Establish a formal arrangement with

State Directorate of Animal Husbandry,

ICAR-Jharnapani, NRCP, Guwahati and

Regional Pig Breeding Farm,

Kyrdemkulai, Meghalaya for ensuring

availability of good breed pigs.

Identify and promote specific cluster of

villages for supply of fodder

Establish tie-up with market players like

wholesalers for purchase of pig feed and

to ensure adequate availability of mineral

mixtures and nutrition supplements at all

project village levels.

Create village level cadre of technical

persons to provide technical services to

Pig rearing farmers regarding

productivity enhancement.

Regular training on best practices and

exposure visits to best practitioners in the

local area through local Animal

Husbandry and Veterinary Department

personnel.


61 MART, Noida

Factor Constraints faced by small and poor

Pig rearing farmers

Critical Intervention points

Access to finance Agriculture financing is largely restricted




coverage.



priority. Further, the interest rate charged

is 2% per month which is high.

Availability of timely and adequate credit

for working capital is an issue. Bank loan

also requires a lot of paper work.

Poor knowledge of government schemes

among the farmers leading to low

outreach of schemes

Build capacities of the SHGs for lending

to farmers through sensitisation and

capital infusion

Form common interest groups of farmers

for linkages with financial institutions

like banks and state government

corporations.

The Project can also fund the activity

directly.

Market access Farmers rear mostly for self-consumption and sale is rare and oly through retail at village level

The production volume vis-à-vis demand is low. Further, supply from other states like Bihar and Uttar Pradesh is currently available at a cheaper rate. Therefore, incentive to carry the produce to higher markets is not present

Enhance production and try to meet the local demand through loacal production. At a later time, with significant rise in production, collectivisation of the produce and sale it in the larger towns can be taken up.

Govt. policies

and external

ecosystem

Disruption in social life due to insurgent activities and charging of multiple taxes by these groups is a major bottleneck.

Inter-tribe quarrels also lead to disruption in economic activities including pig rearing.

Play an advocacy role at the state level involving all the tribal Hohos and state machinery for overcoming these bottlenecks

Implementation Plan for pig rearing

Table-26: Implementation Plan for pig rearing Key steps to be

followed

Activities to be performed by project

Phase I – Preparedness at the community level

Village / Cluster

selection

Identify and select right villages/clusters in both project districts to initiate

pig rearing

Social

mobilization and

institution

building

Identify the willing members/groups to start pig rearing.

Sensitize pig rearers on potential increase in income by using better rearing

practices

Share the intervention plan, cost benefit analysis, and assess community


62 MART, Noida

interest level to take up the activity

List out members separately who are already doing the activity and want to

either expand or strengthen the activity.

Carry out discussions with group members to share various roles and

responsibilities of members.

Preparation of

business plan Prepare a proper business plan for ‘pig rearing’ in consultation with the

incumbents. VCA can be referred here

Capacity building Organize Technical training on better practices in convergence with AH &

Vety Dept.

Organize Training in business and marketing skills (costing, pricing,

accounting, sales and marketing, negotiation, market analysis) for group

members

Phase II – Establish backward and forward linkages

Backward

linkages

Handhold rearers to procure inputs in bulk to reduce operational costs from

either Government or Private Pig Breeding Farm

Share the list of major inputs suppliers for ensuring quality of inputs and its

timely availability

Establish finance support for pig rearing on a unit cost basis

Production Implementation of best practices with the handholding support of the project

team

Clarity of roles, specialization and continuous skill improvement

Market access Identify suitable and multiple markets (mainly local and at best town) and

prepare list of local market players with their contact details

Build System for collaborations

Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate units from time

to time to finds out gaps, take corrective steps and ensure delivery of

appropriate extension services in convergence with AH & Vety Dept.

Possibility for Partnership for Pig Rearing






KVK-Tuensang,

ICAR-Jharnapani

NRCP, Guwahati

Regional Pig Breeding Farm, Kyrdemkulai, Meghalaya

NGOs

Local traders (Butchers) in district towns



63 MART, Noida

Economics of Pig rearing

Calculations have been done for 2 sows and 6 fatteners unit. Cost of various inputs and outputs

are based on information collected from villagers, market players, ICAR - Jharnapni and

Directorate of Animal Husbandry.

Rates taken are as per the financing scheme available with SBI, Jalukie Branch, Peren

The rate of interest paid by farmers is 12% for bank loans.

Loan duration is assumed to be twelve months.

Technical Assumptions

1. Economics calculated for 6 fatteners and 2 sows

2. Gestation period 115 days

3. Weaning age is 30 days and sale is at 60 days of age

4. Average no. of piglets per farrowing is 8

5. Average body weight per fattener is 100 kg

6. Sale price of pork is Rs. 100 per kg

7. Sale price of wean piglet is Rs. 2500 per piglet

8. Cost of feeds is Rs. 15 per kg

A. Capital Expenditure

Table-27 A: Economics for pig rearing – Capital Expenditure

Items Rate (in Rs.)

Construction of farrowing pen 100 sq ft. 20000

Construction of fattener sty (120 sq ft.) 30000

Cost of equipment (@ Rs. 250/pig) 2000

SUB TOTAL (A) 52000

B. Recurring expenditure

Table-27 B: Economics for pig rearing – Recurring Expenditure

Items Amount (Rs.)

Cost of 8 piglets 24000

Insurance 4000

Purchase of concentrated feed supplement (2000 Kg @ Rs.

15/Kg) 30000

Vaccines and prophylactic medicines 1600

SUB TOTAL (B) 59600


64 MART, Noida

TOTAL(A+B) 111600

Interest at 12% for 1 year 13392

GRAND TOTAL 124992

C. Income and Profits

Table-27 C: Economics for pig rearing – Income and Profits

Particulars Amount (Rs.)

Sale of piglets assuming each sow produces 8 piglets (saleable)

and each sow gives birth 2 times a year. Sale price of piglets is Rs.

2500 per piglet (2 sows x 8 x 2 x 2500)

108000

Sale of fatteners assuming one fattener attains 100 kgs and sale

price of live pig is Rs. 90 per kg for 6 fatteners 54000

TOTAL (C) 162000

Profits 37008

RoI 30%

D. Sensitivity Analysis

Table-27 D: Economics for pig rearing – Sensitivity Analysis

Parameters Revenue (Rs) Operating Expenses (Rs)







65 MART, Noida

4.7 Backyard Poultry

Naga households are highly dependent on meat products and poultry is one of the easiest sources of meat

for these rural households and every household engages in backyard poultry farming. In these

households, poultry rearing is at a subsistence stage and commercial poultry rearing activities is rare. The

extents of market for country birds can’t be ascertained though direct empirical evidence. However, it is

well established that Nagaland is a net importer for broiler poultry especially from Assam. This shows an

existing market in Nagaland that is serviced by production units outside the state. Therefore, the produce

of backyard poultry is suitable for the local markets covering towns in the project district and the villages.

Extensive scientific intervention has resulted in advances in backyard poultry farming leading to fast

growing variety of birds. Currently, hybrid varieties have been developed by the Central Avian Research

Institute (CARI) that coloured like the country birds and are very popular in rural areas in India. These

birds grow bigger than the country birds and are also immune to numerous diseases plaguing free ranging

country birds. Further, meat quality of these birds is similar to the country fowl and is preferred by the

rural people.

The advantages of Backyard poultry are

Very low initial investment restricted to procurement of chicks & some feed

Saleable size is attained within 12 weeks

Easy management as the breeds are hardy and free ranging

Faster growth compared to country fowl

More suited than broilers to the high altitude climate in Nagaland

Better market value due to attractive body colour and meat quality

Extra income from eggs if kept for longer duration

Technical Feasibility

Climate in Nagaland is suited to backyard poultry farming

Directorate of Animal husbandry has rich experience in hatching and supply of chicks after proper

inoculation

Veterinary department officers are present in every district & can provide handholding support

The community has the experience of rearing country fowl & can adapt to new practice easily There

exists a high demand in the locality as well as by the outside traders both for meat and eggs. Financial

and non-financial support services are available and there is also possibility of bulk selling to traders.

This business generates income in short run.

Market Feasibility

There is a large demand for poultry in major towns like Dimapur, Kohima and Mokokchung most of

which is met through imports from Assam.

Ready market is also available in district where availability of poultry is a constraint

Facilities and infrastructure available for supply of inputs, veterinary aid, training of beneficiaries


66 MART, Noida

Stakeholders and their roles and functions

Rearer

The broad functions of the rearer are procurement of chicks, feeding, watch and ward and carrying birds

to local market for sale. They usually keep the small number of local fowls and can operate with a flock

size of 10-20 per household. They procure improved variety of chicks from the Animal Husbandry and

Veterinary Department, Govt. of Nagaland in Kohima. They provision the feed from their own source

from open market in Dimapur or Mokokchung.

Local Traders

The local traders rarely procure birds from the villages. They get birds from wholesalers in Dimapur and

Mokokchung and sell in the district towns. The price is around Rs. 150/Kg for the live bird. These are sold

in the regulated markets provided through the license mechanism of the town councils.

Gaps, Issues and Constrains in the Value Chain

Table-28: Gaps, Issues and Constraints in backyard poultry value chain

Stages Gap/Issues/ Constraint

Pre-production No planning related to breed, scale, rearing modalities

Only indigenous breed

Traditional mindset of non- commercialization

Production Poor Rearing practices

High mortality

Lack of knowledge

Post-production

and marketing

Need based selling hence lack of commercial mind set

Individual selling

Lack of appropriate infrastructure

Range of critical interventions

Table-29: Range of critical interventions for backyard poultry value chain

Stages Interventions

Pre-production Introduction of hybrid variety like Kalinga Brown, Mumbai Desi, Rhode

Island Red, CARI Nirbheek etc.

Production Integrating veterinary and insurance service

Proper rearing skill

Credit support system for meeting life cycle needs

Post-production

and marketing

Linking with higher level traders


67 MART, Noida

Implementation Plan to carry out the interventions

Table-30: Implementation plan for backyard poultry value chain

Key steps to be

followed

Activities to be performed by project

Phase I – Preparedness at the community level

Village / Cluster

selection

Identify and select right villages/clusters in both project districts to initiate

backyard poultry rearing

Social

mobilization and

institution

building

Identify the willing members/groups to start either of the 2 or both type of

poultry bird rearing

Sensitize rearers on potential increase in income by using better rearing

practices

Share the intervention plan, cost benefit analysis, and assess community

interest level to take up the activity

List out members separately who are already doing the activity and want to

either expand or strengthen the activity.

Carry out discussions with group members to share various roles and

responsibilities of members.

Preparation of

business plan

Prepare a proper business plan for ‘poultry rearing’ in consultation with the

incumbents. VCA can be referred here

Capacity building Organize Technical training on better practices in convergence with AH & Vety

Dept.

Organize Training in business and marketing skills (costing, pricing,

accounting, sales and marketing, negotiation, market analysis) for group

members

Phase II – Establish backward and forward linkages

Backward

linkages

Handhold rearers to procure inputs in bulk to reduce operational costs from

either Government or Private run Poultry Farms and Feed suppliers

Share the list of major inputs suppliers for ensuring quality of inputs and its

timely availability

Establish finance support for poultry rearing on a unit cost basis

Production Implementation of best practices with the handholding support of the project

team

Clarity of roles, specialization and continuous skill improvement

Market access Identify suitable and multiple markets and prepare list of market players with

their contact details

Build System for collaborations

Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate units from time to

time to finds out gaps, take corrective steps and ensure delivery of


68 MART, Noida

appropriate extension services in convergence with AH & Vety Dept.

Possibility for Partnership for Backyard Poultry






KVK-Tuensang

ATMA

CARI

NGOs


Economics of Backyard Poultry Farming

No example of backyard poultry rearing using improved breeds was found in the study villages or adjacent

areas. Therefore the basis for costing has been arrived at by looking at similar projects in other hilly

regions of India like Garhwal and Orissa where CARI breeds are being reared. However, the prices have

been taken keeping Nagaland context in mind and as per the market rates there.

The beneficiaries will be supplied at a time with 20 chicks, which are one month old. The economics of a

beneficiary unit having 20 birds is worked out here.

1) The initial fixed expenditure to be incurred is Rs. 1500 (Rs. 1000 for night shelter using timber from

the forest and Rs. 500 for the feeders and drinkers)

2) The first batch of 20 chicks will cost Rs. 1200 at the rate of Rs. 60 per one month old chick.

3) The cost of feed required (at the rate of 40 grams per day per bird for 10 weeks) feed @ Rs. 25 per Kg

feed totalling to Rs. 1400.

The beneficiary will rear the birds and will sell the male birds 50 % of total (about 7 in numbers) @

Rs.250/- each when they are 24 weeks old; this is expected to fetch about Rs. 1750.

The female birds will start laying eggs when they are 28 weeks old till the 80th week. It is expected that

each bird will lay on an average 3 eggs per week during a laying cycle. The eggs of these low input

technology birds are expected to fetch a minimum price of Rs. 3.00 each. The income from sale of eggs

from 7 hens will be about 3750 per batch. At the end of the 80th week, the beneficiary will sell the culled

female birds for meat purposes earning an income of about Rs. 2000 (@Rs.250/- per bird of 8 birds).

Therefore, the beneficiary will get approximately an amount of Rs. 3750 per batch with free animal

protein to the family in shape of egg and chicken. With this cycle, the beneficiary rearing two batches of

bird in a year will get about Rs. 7500.

A. Capital Expenditure

Table-31 A: Economics for backyard poultry – Capital Expenditure


69 MART, Noida

Items Rate (in Rs.)

Night Shelter using locally available materials 1000

Feeders and drinkers 500

SUB TOTAL (A) 1500

B. Recurring expenditure

Table-31 B: Economics for backyard poultry – Recurring Expenditure

Items Amount (Rs.)

Cost of 40 month old chicks @ Rs. 60 per chick 2400

Cost of feed @ Rs. 25/Kg for 56 Kg feed ( Samrat or other similar

brands) 1400

SUB TOTAL (B) 3800

TOTAL (A+B) 5300

Interest at 12% for 1 year 636

GRAND TOTAL 5936

C. Income and Profits

Table-31 C: Economics for backyard poultry – Income and Profits

Particulars Amount (Rs.)

Sale of 15 cocks @ 250 per cock 3750

Sale of eggs @Rs. 3 per egg for 28 weeks from 8 hens 2016

TOTAL (C) 5766

Profits {C-(A/3 + B + interest)} 830

RoI 14%

D. Sensitivity Analysis

Table-31 D: Economics for backyard poultry – Sensitivity Analysis








i MART, NOIDA

List of secondary sources/references 1. Annual report 2008-09, Ministry of Development of North Eastern Region

2. Poverty Eradication/Alleviation in North East India: An Approach, The North Eastern Council,

Shillong

3. Potential Linked Credit Plan (Peren and Tuensang), 2010-11, National Bank for Agriculture and

Rural Development, Nagaland Regional Office, Dimapur

4. Indian Poultry Industry Year Book

5. www.nagaland.nic.in

6. www.kvktuensang.org.in

7. www.kvkphek.nic.in

8. www.indiastat.com

9. www.necorps.org

10. www.nedfi.com

11. www. http://gbpihed.gov.in/envis/HTML/vol16_2/S.S.%20Rathore.htm

12. www.agricoop.nic.in

13. www.dare.nic.in

14. www.dahd.nic.in

15. Eleventh Five Year Plan 2007-12, Volume-1, Planning Commission, Government of India

16. http://ignca.nic.in/craft001.htm

17. http://www.dare.co.in/news/others/growth-in-poultry-farming-push-maize-consumption-30-mt-

by-2020-assocham.htm

18. http://www.potatopro.com/Newsletters/20071205.htm

19. http://www.foodreference.com/html/f-potato-consumption.html


ii MART, NOIDA

Annexure: I - Stakeholders consulted Sr. Name Designation Place Contact

1 Mr. H K Khulu,

IAS

Agriculture Productivity

Commissioner & Principal

Secretary, Govt. of Nagaland

Kohima

2 Ms. Thangi

Mannen

Commissioner & Secretary,

Sericulture/Veterinary/Animal

Husbandry, Govt. of Nagaland

Kohima

3 Mr. Y. Yisao Director, Veterinary & Animal

Husbandry Department

Kohima 0370-2260673/ 2221320

4 Mr.

Sentiyanger

Imchen, IAS


Horticulture,

Kohima

5 Mr.

Imkonglemba,

IAS


Industries, Govt. of Nagaland

Kohima 0370-2270244, 09436000108

6 Mr. G. Keppen

Rengma

Director, Industries

Department

Kohima 0370- 2245199

7 Mr. I. Himato

Zhimomi, IFS

Commissioner, Planning &

Coordination/Tourism, Govt.

of Nagaland

Kohima 0370-2270294, 0370-2270294

8 Mr. Tajenyuba Nodal Officer to Agriculture

Productivity Commissioner

Kohima 09436006003

9 Mr. Lipoktoshi Nodal Officer to Agriculture

Productivity Commissioner

Kohima 09856217912

10 Dr. Akho Project Director, State Diary

Federation

Kohima 09436000755

11 Mr. Wati

Walling

Additional Director,

Sericulture Department

Kohima 09436076708

12 Mr Temjin BDO, Tenin Block Jalukie 09436012155

13 Mr. Ndankie

Ndang

Asst. Veterinary Surgeon,

Peren

Peren 09436018586

14 Ms. Teleilunge

R. Sephe

Gender Coordinator,

Development Association of

Nagaland

Peren 09436066180

15 Ms Khrienuo C

Metha

Divisional Commissioner Peren 09436832179

16 Mr. Amos District Horticulture Officer Peren 09436012311

17 Mrs. Kim Inspector, DIC Peren 094360001995

18 Mr. Neichute

Doulo

Coordinator, Entrepreneurs

Associates

Kohima 0370-2242665, email:

[email protected]

19 Mr. Henry

Zeliang

District Agriculture Officer Peren 09436826996

20 Members Self Help Group All study villages

21 Chairman,

Gaon Burha &

Members

Village Council All study villages

22 Chingmak

Kejong

Chief Functionary, Eleutheros

Christian Society

Tuensang 09436007263/03861-220127

23 Mr. Atongbe Grocery shop owner Town Market,


iii MART, NOIDA

Peren

24 Mr. U. S. Saha General Manager, NABARD Administrative

NSCB Building

Kher Mahal,

Dimapur

03862-235600, 235601,

227040,

25 Mr. M. K.

Mandal

Dy. G.M., NABARD Administrative

NSCB Building

Kher Mahal,

Dimapur

03862-227040

26 Mr. G. R.

Teron

Branch Manager, SIDBI Dimapur 03862-234820

27 Mr. B.

Longkumertha

General Manager, Nagaland

Infrastructure Development

Corporation

Dimapur 03862-226848, 233382,

09436002160

28 Mr. Gopal Transporter Jain Mandir

Lane, Dimapur

09436006630

29

Vegetable

Sellers from

Wokha &

Jalukie

Wednesday Market,

Supermarket Area

Dimapur

30 Mr. Imsong

Meren

Asst. Commissioner Peren 09436434817

31 Mr. Lal Singh Wholesaler of pigs, Burma

Camp

Dimapur 09862588075

32 Mr. M. U.

Khan

Branch Manager, SBI Jalukie 03839-220243/ 09435375951

33 Mrs.

Thanduanliu

Head of a poor family Mhainamtse,

Peren

34 Mrs. Kimma Lady of a poor family Saijang, Peren

35 Mr. Lamkholen Head of a poor family Saijang, Peren

36 Mr. Sosangmar Project Coordinator, Krishi

Vigyan Kendra

Mokokchung 09436006351

37

Dr.

Rongsensusang

Subject Matter Specialist,

Veterinary, Krishi Vigyan

Kendra


38 Dr. M. Angami Dy. Director, Planning-I, Dept

of animal Husbandry

Kohima 09612449899

39 Mr. P. Hesu Asst. Marketing Officer, Dept.

of Agriculture

Kohima 09436001817

40 Dr. Moa

Walling

Project Director, ATMA and

District Horticulture Officer

Tuensang 09612639238

41 Ms. Sopsula Additional Commissioner Tuensang 09436602075

42 Mr. Chumlamo Extra Assistant Commissioner Chessore,

Tuensang

09436607343

43 Chairman,

Village Council

Village Council Chessore,

Tuensang

09436407351

44

Sudhir Kr.

Mandal

Manager, Mahavir

Bhandar, South

East Colony

Road,

Mokokchung,

798601


iv MART, NOIDA

45 Mr. Moa Pork Seller Mokokchung 09612278662

46 Mr.

Bendangyanger

Dy. Director, Department of

Agriculture

Kohima 09436001634

47 Dr. Timothy

Lotha

Dy. Director, Planning-II,

Dept of animal Husbandry

Kohima [email protected]

48 Mr. Tekatushi Jt. Director, State Agriculture

Research Station


49 Mr. Raj Verma Additional Secretary cum Dy.

Team Leader, NEPED

Kohima/Dimapur 09862011033

50 Mrs. Aswangle Grocery shop owner, Town Market,

Peren

09436211914

51 Mr.

Teirieswang

Best Practitioner, Dairy Peletkie, Peren

Mr. T. R.

Yancham

Jt. Director, Department of

Agriculture

Kohima 09436005805

Mr. D.

Sudkhrie

Dy. Director, Department of

Agriculture

Kohima 09436003631

Mr. Joseph

Humtose

Director, Department of

Horticulture

Kohima 09615848978

Manya Sipong

Chang

Chairman, A.P.M.C. &

President, Eastern Farming

Association

Tuensang 09436427375, 09436407049

C. P. Soihiam Pastor, Rongmei Baptist

Church

Mhainamtse,

Jalukie, Peren

0942205967

Ahiam

Gangmei

Member, Village Development

Board

Mhainamtse,

Jalukie, Peren

09856727545


v MART, NOIDA

Annexure: II - Stakeholders’ Consultation Report


MART, NOIDA


1 MART, NOIDA

1. Background: The North East Rural Livelihood Project (NERLP) of the Ministry for Development of North Eastern

Region (DoNER), Government of India, aims to address rural poverty in the region through creation

of sustainable livelihood for the rural poor, particularly for women. NERLP had commissioned a

‘Livelihood Based Agri Business and Market study’ in, Mizoram, Nagaland, Sikkim and Tripura. In

Nagaland, Peren and Tuensang were the identified districts for this study.

MART, a leading livelihoods and marketing consultancy, was selected to conduct the study. Field

study for Nagaland was conducted in during August–October 2010. This report documents the

feedback received on the draft report and the MART’s response to the same. The feedback to be

incorporated the final report is mentioned at the end of this report.

Three kinds of consultations took place that through feedback was received. The draft report for

Nagaland was submitted to NERLP and World Bank provided their feedback through email while the

state provided their feedback through a stakeholders’ consultation workshop organised in Kohima

2. Stakeholders’ Consultation Workshop Agenda: Discussion on the revised draft report on “Livelihood Based Agri Business and Market

Studies for North East Rural Livelihood Project”

Objective: Share findings and recommendations from the revised draft report for validation and finalisation of the Livelihood Based Agri Business and Market Studies report

Venue: Meeting room attached to the chamber of the Agriculture Productivity Commissioner, Government of Nagaland, Kohima

Time: 12:00 hours

Date: 8th February, 2011

List of Participants: A scan copy of the attendance sheet is placed under annexure – 1. The list id

presented hereunder in table–1.

Table–1: List of participants

Sl Name Designation

1 Sri Alok Kumar

Shrivastava, IAS

Project Director, NERLP

2 Sri I. Himato Zhimomi Commissioner & Secretary, Dept. of Planning & Coordination, Govt. of

Nagaland

3 Sri Elusing Meru Secretary, Department of Environment & Forest, Govt. of Nagaland

4 Sri Wepretso Chief Conservator of Forest, Govt. of Nagaland

5 Sri Raj K. Verma Additional Secretary to the Government of Nagaland, NEPED

6 Dr. Tajenyuba Nodal Officer, Office of the APC, Govt. of Nagaland

7 Sri Vengota Nakro Member, POU Administration, NEPED

8 Sri Takum Chang Member, NEPED

9 Dr. T. Limyii Jt. Director, Dept. of Veterinary & Animal Husbandry, Govt. of Nagaland

10 Sri Chandan Basera Jt. Director, Department of Sericulture, Govt. of Nagaland


2 MART, NOIDA

11 Sri Chingmak Kejong Secretary, Eleutheros Christian Society, Tuensang

12 Ms. Neilazono

Terhuja

Member, Nagaland Beekeeping and Honey Mission

13 Sri Bodevi Shuya Team Member, Nagaland Beekeeping and Honey Mission

14 Sri Kenungoyi Thelno Member, Nagaland Bamboo Development Agency

15 Sri Y. L. Thongtsar Nagaland Bamboo Mission-Implementation Team, Nagaland Bamboo

Development Agency

16 Ms Cressida Jamir Member, Nagaland Bio-Resources Mission

17 Sri Manensangla

Amer

Member, Nagaland Bio-Resources Mission

18 Sri Ringsanbo Zeliang State Coordinator-Nagaland, NERLP

19 Sri Amit Kar Project Manager, NERLP

20 Sri Kaustuv S

Mukhopadhyay

Consultant, MART, NOIDA

2.1 Proceedings of the workshop

Sri Alok Kumar Shrivastava (IAS), Project Director, NERLP opened the discussion by welcoming the

participants and introduced the NERLP team and the Sri Kaustuv Mukhopadhyay, Consultant, MART.

He also elaborated the structure of the discussion that will open with a presentation on the status of

NERLP followed by the presentation on the ‘Livelihood Based Agri Business and Market Studies’ and

end with comments and suggestions from the participants. Some of the participants were new to

the NERLP team and this necessitated a round of introduction by all present for sake of

familiarisation.

2.1.1 Presentation by the Project Director, NERLP

It was a brief presentation that emphasised on what NERLP plans to achieve and the

developments/achievements till the present time. The presentation also touched upon the change in

development perspectives at Government of India level specifically the poverty alleviation schemes.

He elaborated the shift in focus from individual oriented schemes to group approach like SHGs and

the emphasis on creation of community assets. The benefits of community orientation were spelled

along with caveats on capacity building, assets’ quality, maintenance and utilisation.

The presentation went on to describe the experience of development projects (like NERCORMP) in

the North-East that have created positive impact. These projects focussed on infrastructure

development and environment protection. It was pointed out that NERLP, the World Bank supported

projects would like to build on the successes of these projects. The project has been designed in 2

phases to cover the whole of North-East. The 1st phase is currently on and the 2nd phase is to start

from 2016. The focus will be on livelihoods. The experiences of Andhra Pradesh, Rajasthan, Madhya

Pradesh and Bihar were shared. Learning from these states hinted that the project should not linger

beyond a certain point in time and people achieving above poverty line status should be removed

from the ambit of the project.

Talking of the current status of NERLP, it was mentioned that the project is running behind schedule

as the project started in December 2009 for all practical purposes. The NERLP society was formed in

May, 2009 while the current office was operationalised in the new building in June 2010. This project


3 MART, NOIDA

promoted by Ministry of DONER will span over 5 years in 4 states viz. Mizoram, Nagaland, Sikkim and

Tripura. The project will function simultaneously in these states. The project will target 300,000

households with maximum households being covered in Tripura. In each state, 2 districts will be

covered under the project. The Project Director has visited 8 villages during his earlier visit t the

state of which 5 villages were from Tuensang district and 3 were from Peren. Mr. Ringsanbo Zeliang

has been appointed as the state coordinator for the project. The district project management unit

will be shortly operationalised with recruitment of 10-12 personnel. The recruitment of district

project manager will be held in Kohima shortly. Further, a project facilitation team will be put in

place as experiences from the states of Andhra Pradesh and Bihar show that they make some crucial

difference. The state coordinator will be only for coordination purposes and fund flow will be from

the regional project management unit to the district project management unit to the project

facilitation team to the SHGs and other community institutions (like vibrant youth groups in

Nagaland). This system has been envisaged by the World Bank. There are examples of empowered

community groups in Bihar even running the PDS at the village level. The baseline study covering 120

villages from 4 states is over and analysis is on. Other documents like the state PIPs and financial

management manual are in different states of readiness and would be complete by March 2011 in

all probability. The drafts of community operations manual, HRM and procurement manual are

under review at the World Bank. Livelihoods, environment assessment and social assessment are 3

studies with specific mandate to look into the respective sectors. The pre-appraisal is now expected

to take place in March 2011.

Officers from NERLP will regularly visit the 4 states in the coming days and exposure visits will be

organised for the project staff.

2.1.2 Presentation by Consultant, MART

Sri Mukhopadhyay stated by thanking the participants for their presence and extended his gratitude

to all stakeholders who facilitated the study by extending help during the field visits and sharing

information.

The presentation was aided by a slide show (placed under annexure-2) in conjunction with displays

from the revised draft report. It started with sharing the objectives of the ‘Livelihood Based Agri

Business and Market Studies’ followed by the methodology adopted for the study. The areas

(villages, towns and districts) covered were mentioned and the list of stakeholders consulted were

also shared.

The presentation went on to present its findings on the livelihoods status in the status with specific

focus on animal husbandry, non-timber forest produce and skills. The contributions of each of these

sectors were outlined along with the constraints faced by the villagers. The expressed needs of

villagers as identified during the study were also shared. This was followed by the section on value

chain wherein the product selection process was presented upfront leading to specific value chains

on maize, potato, soybean, piggery and backyard poultry. The value chain maps depicting product

movement and pricing was elaborated upon for each of the identified products. It was followed by

presenting the constraint-solution matrix and implementation plans wherein the issues related to

the products were discussed. This was followed by the suggestions and feedback session.


4 MART, NOIDA

2.1.3 Comments and suggestions from the participants 1. Sri Raj Verma made suggested that the role of women, climate proofing, pestilence& diseases

and trade-offs need to be included in the report.

2. Sri Vengota Nakro brought to fore the potential for promoting the homestead garden under

agriculture as a major chunk of the produce is sold through roadside counters near the villages.

It was also shared that under other development projects land development activities are being

undertaken for expanding homestead gardens.

3. The participants also made observations related to product selection and the sought

clarifications on not including NTFPs among the selected products. Some of the participants

observed that the project should try to promote low volume but high value products like the

Naga King chilli as that will help in overcoming the transport bottlenecks in the state.

4. Suggestions were also made regarding selection of high yield germplasm from among the

strains of maize, soybean and potato available within the state.

5. It was also suggested that trading of the selected products should be promoted in the local

markets before linking them with high order markets like Dimapur or Mokokchung.

The meeting concluded with a short address by the State Coordinator, NERLP and a vote of thanks

by the Project Manager, NERLP.

3. Feedback to be incorporated in the final report

A consolidated list of feedback on the draft report as received from various sources is presented in

table–2. MART’s response to each observation is mentioned alongside in the corresponding column

of the table.

Table–2: Feedback from various stakeholders

Feedback from NERLP

Chapter 1:

Observations Response

In the step 4 the example of five products should

be relevant to a particular state. A common

formula should not be applied.

Taken note of for addressing it suitably in

context of Nagaland

Chapter 3:


In all the state reports, the format and

expressions of the tables should be same and

prominent.

Maximum parity with other state reports will be

tried. However, some flexibility in structure is

needed as situations vary from state to state

and hence presentation of findings & analysis

may be different.

In some of the tables data is missing (e.g-Table 6

for all the crops). Further there is a difference

between a crop or a vegetable and a livelihood

option.

Suitable tables will be put in addition to table-6

& table-7 & additional information will be put in

place. Crops and vegetables will be

represented separately

Land holding pattern is not mentioned anywhere. Land holding pattern information will be given

in the form of land rights and usage under

separate heading which is unique to Nagaland.

The detailed demographic profile of the districts

and villages covered has to be given.

Necessary additions will be made for

demographic profile of individual villages under


5 MART, NOIDA

separate heading

The selected goods movement route is missing. Already given. Please refer goods movement

routes provided under table-2 in page 10

Investment and value addition of the products

need to be highlighted under the agriculture

section.

Necessary additions will be made under

agriculture section.

Seasonality of land based livelihoods (as in the

case of other state studies) is not mentioned.

Necessary additions will be made under

agriculture section

The section on Animal Husbandry is slip shod. It

has no coverage of the marketable surplus and

selling dynamics, valued addition to the products,

seasonality analysis etc.

Necessary additions will be made under animal

husbandry section

The service based livelihoods are also not covered. Skill profile will be added under separate

heading under livelihoods section

The study should give one or two case studies/

success stories.

1-2 case lets/success stories will be included

under livelihoods profile

The section on NTFP is also not comprehensive

enough. In addition, it is without information on

marketable surplus and selling dynamics of the

products as well as the seasonality and value

addition aspects.

Marketable surplus is reflected through the

average sales per household under table-9 in

page 18.

Seasonality and value addition aspects will be

added to the existing write-up

The credit availability scenario should be also

adequately elaborated.

Suitable additions will be made to the existing

information

Chapter 4


The mandate of study was to cover 5 products

for value chain analysis, but in this case only four

have been covered.

5th product value chain will be added in the

profile.

The process of short listing of products has to be

elaborated and justified.

Justifications will be included under value

chain analysis section

All the products should cover the national and

international market status and overall scope of

the products.

Available data from secondary sources will be

included under each product value chain

The economics of products must be more detailed

and more technical (for example, the plan does

not even mention the area needed)

Relevant explanations or additions will be

provided for economics of each product.

The possibility of partnership with identified

players of the sub sectors are not explored

Additional information will be integrated under

each product value chain. Convergence

potential with select agencies is already

captured under summary of suggested

interventions in the tabular form.

The study has not identified the critical

intervention points in the value chain of the

products. Resultantly, it did not cover the

investment planning for those critical points.

Well taken, however, critical intervention points

are presented as strategic action points in

tabular form under constrain solution matrix for

each product value chain. Please refer page 29,

37, 44 for maize, potato and soybean

respectively.

Necessary additions will be done for piggery

and the 5th value chain to be added


6 MART, NOIDA

The study should provide guidance for setting up

small, viable and sustainable processing units.

Taken note of for integrating under each

product value chain

The study must also highlight the changing

demand and supply scenario as well as projection

of the future trend to ensure that the farmers are

able to trace and face the challenges of

negotiation with market players and ultimately get

full benefits.

Additional information from secondary sources

will be collected and reflected if available.

However, based on the market scenario given

in introduction part of each value chain activity

and field survey challenges for small and

marginal famers are already included under

each product value chain analysis.

Feedback from World Bank


The Unit costs/investment required for each

livelihood activity studied is to be put in a tabular

form starting from the household/SHG/cluster

level, so that it is clear what is the allocation for

investments from various funds within the project

The details will be given in tabular form in the

executive summary also.

For each activity in each state identify one agency

clearly who can be the overall resource/ sector

support agency for contracting.

Potential partners already mentioned in tabular

form under the section on value chain will be

properly highlighted in other sections of the

report.

Feedback from stakeholders’ consultation workshop

Role of women, climate proofing, pestilence and

diseases and trade-offs need to be included in the

report.

The report will add specific information under

the livelihoods section for addressing the issues

identified.

Potential for promoting the homestead garden

under agriculture as a major chunk of the produce

is sold through roadside counters near the

villages should be addressed.

The existing write-up on agriculture will be

suitably modified to address the potential of

homestead garden.

Clarifications on product selection especially

addressing exclusion of NTFPs and those of low

volume but high value nature need to come in the

report.

The product selection process will be expanded

with better detailing for building more clarity

and will also mention reasons for exclusion of

certain products.

Seed selection through high yield germplasm

from among the local strains of maize, soybean

and potato need to be looked into.

The recommendation will be added to the

recommendations section.

Trading on selected products should be promoted

in the local markets before linking them with high

order markets like Dimapur or Mokokchung.

The suggestion already exists in the report and

will be reworked to bring out more clarity.


7 MART, Noida

Annexure–1: Scan copy of attendance sheet of stakeholders’ consultation workshop


8 MART, Noida

Annexure–2: Copy of slides presented in the stakeholders’ consultation workshop

Livelihood Based Agri-Business and Market Studies

North East Rural Livelihood Project

NagalandFebruary 2011

MARTA-32, 1st Floor, Sector 17, Noida - 201301Tel: 0120-2512140, Fax: 0120-4273995www.martrural.com

Livelihood based Agri-Business and Market studyAssess economic opportunities in farm, off-farm and non-farm sectors Understand existing infrastructure, resources ,

support services, major occupations, production systems, technology, policy environment and potential for growth

Conduct market assessment and value chain analysis for potential livelihood activities

Suggest viable income enhancement strategies for potential farm, off-farm and non-farm sectors

Suggest business plans for appropriate livelihood interventions for potential activities


9 MART, Noida

Approach of the studyActivities Key Steps Outputs

Review of project literature and

reports

Study livelihoods initiatives/project

such as DONER, NERCRMP in north

east states.

Secondary reports and website

Draft study design and plan

Step 1

Pre study

preparation

Develop better understanding of the

study and project states

Draft study design and plan

State wise meeting with state

nodal officer and stakeholders from

line departments and resource

agencies

To understand NERLP objectives

and process, and key stakeholders

in the region

Generate list of livelihood activities

Share study approach and

methodology

Share outline of draft report

Step 2

Initiation

Meeting at

state level

Develop better understanding

keeping project objectives in mind

List out key stakeholders for meeting

during field visit

Feedback on constraints and

opportunities in the state

Finalize approach and methodology

Finalize study villages based on

availability of key products/services

Finalize field visit plan

State wise data information

collection, compilation and analysis

of initiation meetings

Step 3

Initiation Report

State wise initiation report. It contains:

Existing livelihood profile and issues

SWOT analysis of the region

Overall approach and methodology

List of villages to be visited

List of key stakeholders shortlisted

Field visit plan

Discussion guides

10-12 potential list of products for

value chain analysis

Interaction with key stakeholders

from line departments such as

agriculture, horticulture, animal

husbandry, resource agencies, and

key market players

Analysis of secondary reports and

market analysis

Step 4

Fieldwork -1

(Interactions

with key

stakeholders)

Shortlist 4-5 products/commodities/

services per state for undertaking

value chain analysis

List of stakeholders/VC players and

products/commodities/ services

villages finalized for Field Work-2

Finalized discussion guides for

Fieldwork-1

Finalize study design

Finalize field visit plans

Finalize field teams

Undertake field visit

Finalize list of stakeholders to be

met

Step 5

Fieldwork -2

(Interactions in

villages and

markets)

Fieldwork involves

Livelihood survey in villages and

market and meeting with enablers

Value chain analysis of 4-5

products/commodities/services and

meeting with value chain players


10 MART, Noida

Data compilation and analysis

Prepare draft strategies Step 6

Draft Report

Draft report as per objectives listed

out earlier

Share draft report though power

point presentation to World Bank,

DoNER staff and other stakeholders

as suggested by the project

Step 7

Stakeholders

consultation

workshop to

share Draft

Report

Agreed feedback of stakeholders on

the draft report

Content for final report finalized

Stakeholders consultation workshop

report

Additional data analysis and

information collection from

secondary sources

Feedback incorporated from

stakeholders consultation workshop

report

Step 8

Final Report

Final report as per study objectives

defined earlier

Key Informants Place

Villagers (Farmers, SHG Members,

Youth, Church etc.)11 villages in 2 districts

Secretariat & Directorate Officials Kohima & Dist. HQ

Govt. Line Dept. Officials Dimapur, Mokokchung &

Dist. HQ

Support Institutions (NABARD, Banks,

Cooperatives, KVKs, ATMA etc.)Dimapur, Mokokchung

NGOs Kohima, Tuensang, Jalukie

Processors, Traders, Transporters etc.Dimapur, Mokokchung,

Peren, Tuensang, Jalukie

Other Development projects (NEPED) Dimapur

Key Stakeholders consulted


11 MART, Noida

District Block Villages

PerenPeren, Jalukie &

Athibung

Mdunglwa, Peletkie, Old

Puilwa, Old Jalukie Lower,

Mhainamtse, Saijang

Tuensang

Sangsangyu,

Longkhim, Chessore

& Noklak

Hakchang, Sipongsang,

Angangba, Chessore, Tsuwao

Study villages

Livelihood Profile

Findings


12 MART, Noida

• Predominantly rain-fed agriculture• Cultivation activities mostly in kitchen garden and Jhum land• Farming done individually; cluster approach adopted under jhum• Jhum cycle: 9 years in Tuensang & 15 years in Peren• Handheld equipment used mechanisation not viable• Inputs and outputs not calculated in economic terms • Agri quantities not expressed against land measurement units• Voiced need for Irrigation and fencing• Post harvest processing at village level are few• Low exposure to cash crop leading to low purchasing power• Krishi Vigyan Kendras functioning since last 2-3 years only• Varied agro-climatic situation so cultivation seasons vary widely• Jalukie only region with large cultivable plain land

Agriculture

PIGGERY• Pigs reared are of mixed breed and pure breeds are very rare• Villagers buy piglets locally• Piggery is labour & resource intensive • Households can afford to rear 1-2 pigs only.• Pigs slaughtered by households for self-consumption• Sale rare and take place only to meet financial exigenciesPOULTRY• No broiler poultry rearing facility in the study villages• Poultry is incidental livelihood not planned economic activity• Poor growth rate of local birds• Sale of poultry is not through any standard measureCATTLE• Cattle rearing is rare and animals are allowed to roam freely• Cattle reared mostly for meat • Slaughtered mostly during festivals and special occasions

Animal Husbandry


13 MART, Noida

Non-Timber Forest Produce

• Depend on forests to meet day-to-day requirements• Prominent source for food, shelter, water, fuel, fodder, and

medicines• Year-round availability of NTFPs• Forest produce are mostly gathered for self-consumption• Source of cash for rural households• Exclusive sale of NTFPs not undertaken• Fauna (crabs, fish, small animals) also part of saleable items• NTFPs often priced at a premium and is beyond reach of local

buyers• No processing or value addition done• Market outside Nagaland scarce as many items not considered

for use

• Naga households display high levels of self-sufficiency• Members take care of multifarious activities requiring diverse

skills. • People have skills covering, cultivation, hunting, cooking,

knitting, carpentry, basket weaving, etc. • Skills are traditional in nature and reflect the Naga heritage• Skills seldom put to business use and earn livelihoods• Disconnect with larger market outside Nagaland ; few

opportunities for interaction • Artisans work with traditional machineries so productivity is lowExample

— Most women know art of knitting and weaving — No exposure to advanced looms— Proper support infrastructure is lacking

• Acquired skills like driving, electrician, mason, plumber etc. low

Skills


14 MART, Noida

Value Chain Analysis

Findings & Suggestions

Task performed Key Steps Shortlisted activities

Review of regional implementation

plan provided by World Bank

Study secondary reports and concerned websites

Step 1

Literature

review

Vocational training,

Soybean, Backyard Poultry,

Ginger, Turmeric, Paddy,

Pineapple, Large

Cardamom, Ari Silk, Chilli

Meeting with state nodal officer

Meeting with APC, Commissioners

and department officers at Kohima

Meeting with govt. officials, bankers,

NGOs, villagers and SHGs at

Dimapur, Peren and Tuensang

Village visits in both districts

Review of secondary reports

Step 2

Stakeholder

consultation in

Nagaland

Piggery, Maize, Mithun,

Potato, Kholar, Soybean,

Backyard, Poultry, Ginger,

Turmeric, Paddy,

Pineapple, Large

Cardamom, Squash, Yam,

Ari Silk, Chilli

Meeting with World Bank staff and

Project Director, NERLP at New Delhi

Analysis of secondary reports

Step 3

Consultation

with PD,

NERLP and

World Bank

Potato cultivation

Maize cultivation

Soybean Cultivation

Pig rearing

Backyard Poultry

Selection of Activities


15 MART, Noida

ProduceActivity Suggested

Size of activity suggested

Unit of activity Capital required (Rs)

1st Year RoI (%)

Maize Popularising extensive maize cultivation using improved agriculture practices

1 acre 5,130 138

Potato Popularising extensive potatocultivation using improvedagriculture practices

0.5 acre 17,656 125

Soybean Popularising extensive soybeancultivation using improvedagriculture

1 acre 8,340 105

Pig Rearing Pig for selling pigletsand fattened pigs for pork

2 Sows and 6fatteners

1,24,992 30

BackyardPoultry

Rearing of poultry birds andselling of birds and eggs

20 birds 5,936 14

Maize Cultivation

Value chain map


16 MART, Noida

Potato Cultivation

Value chain map

Soybean Cultivation

Value chain map


17 MART, Noida

Piggery

Value chain map

Constraints-Solution MatrixFactor Constraints faced by small

farmers

Critical intervention points

Input

sourcing

Seeds available with the

farmers are of indigenous

variety with low yield and


Fertilizers are not used and

knowhow of application is not

available to the farmers.

The supply of improved potato

and fertilisers by the state

government is restricted to

few pockets in Peren and

Tuensang.

Identify suitable improved

varieties of seeds and

fertiliser through local

agriculture research stations

Identify suppliers of the

seeds and fertilisers and

create linkages

Organise farmers groups or

SHGs to procure inputs

collectively from suppliers

Train farmers in improved

agriculture practices for

proper utilisation of the

inputs.


18 MART, Noida

Factor Constraints faced by small

farmers


Productio

n

practices

and

technolog

y used


development as the ownership

rights are not explicitly spelt.

Traditional practices are still

being followed as extension

activities achieved the desired

momentum and reach.

Youths don’t look up to

agriculture as a viable

economic activity

Arrange farmers’ meets in

association with the

agriculture scientists in the

state.

Discuss land ownership and

land development issues

with the village councils and

village development boards

Identify proper seed

varieties suitable to local

conditions



farmers


Access to

finance

Agriculture financing is largely

restricted to only a few

locations like Dimapur, Jalukie,

Phek and Mokokchung. Both

Peren and Tuensang have poor

bank coverage.

Though SHGs are present in

many villages agriculture

financing is not a priority.

Further, the interest rate

charged is 2% per month

which is high.

Build capacities of the SHGs

for lending to farmers

through sensitisation and

capital infusion

Form common interest

groups of farmers for

linkages with financial

institutions like banks and

state government

corporations.



19 MART, Noida


farmers


Market

access

Farmers sell their produce

mostly through retail.

The sale volume is low hence

incentive to carry the produce

to higher markets is not

present

Collectivise the produce at

the village level through

farmer groups or SHGs and

sell it in the larger towns for

better price realisation and

lower transportation costs.

Govt.

policies

and

external

ecosyste

m

Disruption in social life due to

insurgent activities and

charging of multiple taxes by

these groups is a major

bottleneck.

Inter-tribe quarrels also lead

to disruption in economic

activities including agriculture.

Play an advocacy role at the

state level involving all the

tribal Hohos and state

machinery for overcoming

these bottlenecks




Cluster

selection

Identify farmers in villages based on cluster approach for

initiating improved potato cultivation

Identify specific locations within the project area based on the

agro-ecological parameters in consultation with agriculture

research stations

Social

mobilization

and

institution

building

Generate interest within the community by share the benefits

of undertaking intensive cultivation through improved practices.

Develop farmers’ groups to work like a unit

Larger number of farmers is to be integrated in the farmers’

group based on performance of the early adopters through

demonstration effect.

Initiate participatory discussion to arrive at consensus on roles

and responsibilities of members and frame rules for the group.


Implementation plan


20 MART, Noida


Preparation

of business

plan

Prepare a business plan for potato cultivation in consultation

with the farmers, technical experts and financers. The plan

should detail economics of the activity, input sourcing, market

linkages, technology and production practices. Further, scope

for convergence with supportive schemes from government and

other agencies should be scouted.

Capacity

building

Identify agencies (government and private) and local best

practitioners for need-based training at the community level.

Training on improved practices best on the method of adoption

best practices is to be imparted to the cultivators.

Leadership training is to be arranged for members and leaders

Business and marketing training (costing, pricing, accounting,

sales and marketing etc.) needs to be organised for the

members. The focus should be on participatory mode of

content delivery.

Implementation plan



Backward

linkages

Guide farmers to procure inputs collectively





Develop clarity of roles for group members

Set quality standards and standard practice protocol at

production level to achieve efficiency, higher productivity and

lower costs

Develop MIS for tracking production process and quality control

Market

access

Identify markets and create list of traders with contact details.

Encourage farmers to do simple value addition such as sorting

and grading to realise better prices.

Handhold the farmers in collectivisation and marketing

Implementation plan


21 MART, Noida



Monitoring

and

evaluation

Set up regular follow up and monitoring system to evaluate

performance of farmer groups.


Assist farmers to better access benefits of local extension

activities

Strengthenin

g Institution

Facilitate farmers’ group and association to upscale and sustain

the initiative

Invest in regular capacity development of the group and

association

Create village level cadres to extend technical and marketing

inputs to community at village level.

Provide handholding and technical support to farmers’

association

Implementation plan

Thank you

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