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Livelihood based Agri Business and Market Study in Tripura

MART, Noida 0

Livelihood Based Agri Business and Market

Studies for North East Rural Livelihood

Project

Final report, Tripura

April 2011

Submitted by

MART

A-32, 1st Floor,

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

www.martrural.com

http://www.martrural.com/


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Content

Abbreviation and Accronyms 3

Acknowledgement 6

Executive Summary 7

1 Chapter 1: Background and Methodology 10

1.1 Background 10

1.2 Objective of the study 10

1.3 Approach of the study 11

1.3.1 Key features of the study methodology 12

1.4 Limitations of the study 13

2 Chapter 2: State profile and livelihood issues 14

2.1 State profile 14

2.2 Key indicators of project districts 15

2.3 Rural livelihood and poverty issues 15

2.4 Key livelihood trends 17

3 Chapter 3: Livelihood profile 19

3.1 Existing infrastructure & support services 19

3.2 Market accessed by villagers 21

3.3 Livelihood profile 22

3.3.1 Land-based livelihoods 22

3.3.2 Livestock based livelihood 29

3.3.3 Non-farm based livelihood 32

3.3.4 SHGs and livelihoods 34

4 Chapter 4: Value chain analysis 36

4.1 Introduction 36

4.2 Summary of recommendations 37

4.3 Potato cultivation value chain 40

4.3.1 Background 40

4.3.2 Feasibility of potato cultivation 41

4.3.3 Production clusters 42

4.3.4 Major usage and by products 42

4.3.5 Potato value chain 42

4.3.6 Project Intervention 48

4.4 Vegetable cultivation value chain 53

4.4.1 Background 53

4.4.2 Feasibility of vegetable cultivation 54


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4.4.5 Vegetable value chain 55


4.5 Fish culture value chain 66

4.5.1 Background 66

4.5.2 Feasibility of Fish culture 67



4.5.5 Fish value chain 68


4.6 Pineapple cultivation value chain 80

4.6.1 Background 80

4.6.2 Feasibility of pineapple cultivation 81



4.6.5 Pineapple value chain 82


4.7 Pulse cultivation value chain 93

4.7.1 Background 93

4.7.2 Feasibility of pineapple cultivation 94



4.7.5 Pulse value chain 95

4. 7.6 Project Intervention 100

5 Annexure

1. List of stakeholders met during the study 105

2. List of villages visited 107

3. Processing unit for puffed rice making 108

4. List of secondary sources 111

5. Stakeholders consultation report 112


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Abbreviation and Acronym

ADC Autonomous District Council

APMC Agriculture Produce Market Committee

APRLP Andhra Pradesh Rural Livelihood Project

DoNER Ministry of Development for North Eastern Region

DRDA District Rural Development Agency

FGD Focus Group Discussion

FYM Farm Yard Manure

GNP Gross National Product

HDI Human Development Index

JFM Joint Forest Management

Kani Unit of land

Kg Kilogram

MART A leading livelihood and marketing consultancy agency

MFI Micro Finance Institution

MOP Muriate of Potash

MPDPIP Madhya Pradesh District Poverty Initiatives Project

MT Metric Ton

NABARD National Bank for Agriculture and Rural Development

NERCRMP North Eastern Region Community Resource Management Project for Upland

Areas

NERLP North East Rural Livelihood Project

NREGA National Rural Employment Guarantee Act

NREGS National Rural Employment Guarantee Scheme

NSDP Net State Domestic Product

OTELP Orissa Tribal Empowerment and Livelihood Programme

RBI Reserve Bank of India

RGVN Rashtriya Gramin Vikas Nidhi

ROI Return on Investment

Rs Rupees

SGSY Swarnjayanti Gram Swarozgar Yojana

SHG Self Help Group

SIPARD State Institute of Public Administration and Rural Development

SSP Single Super Phosphate

VAT Value Added Tax

WORLP West Orissa Rural Livelihood Project

http://rural.nic.in/anual0203/chap-5.pdf


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List of tables

List of Tables

Table-1: Key development indicators for state, west district and north district......................... 15

Table-2: Availability of infrastructure and support services ...................................................... 19

Table-3: types of market facilities available................................................................................. 21

Table-4: Classification of landholdings........................................................................................ 22

Table-5: Major crops in villages................................................................................................... 23

Table-6: Seasonality of major crops grown................................................................................. 24

Table-7: Practices adopted by farmers……………………………………………............................……… 27

Table-8: Marketable surplus for major crops...................…………………………………………………. 28

Table-9: Selling system for major crops..............................……………………………………………….. 28

Table-10: Major livestock activities..............................................................…………………………. 29

Table-11: Seasonality of major livestock activities…………………………………………………………… 29

Table-12: Farmer’s practices for fish culture…………………………………………………………………… 31

Table-13: Marketable surplus in livestock activities………………………………………………………… 31

Table-14: Selling system for livestock activities ……………………………………………………………….. 32

Table-15: Major non-farm based activities pursued by villagers………………………………........... 33

Table-16:Summary of suggested interventions for value chain activities.................................. 37

Table-17:Potato variety and market prices............................. …………………………………………….. 46

Table-18:Constraints faced by farmers and intervention points…………………………………………. 47

Table-19: Economics for potato cultivation ……………………………………………………………………. 49

Table-20: Inputs costs and incomes for potato varieties.........................………..………………….. 50

Table-21: Wholesale and retail prices of vegetables.............. …………………………………………….. 59

Table-22: Constraints faced by farmers and intervention points……………………………………….. 59

Table-23: Economics of green chilli production..…………………………………………………………….. 61

Table-24:Inputs costs and incomes from vegetables............................ ………..……………………... 64

Table-25: Fish wholesale prices for farmers................................………………………………………… 72

Table-26: Wholesale markets and type of fish sold........…………………………………………………… 72

Table-27:Fish wholesale and retail rates………………………………………………………………………… 74

Table-28: Constraints faced by dish farmers and intervention points..……………………………… 74

Table-29: Economics for fish culture.................……………………………………………………………….. 77

Table-30: Fish culture possibilities and their economics.........………………………………………….. 78

Table-31: Pineapple farming practices..........................................………………………………………. 84

Table-32: Wholesale and retail price for pineapple verities...……………………………………………. 87

Table-33: Unit prices for processed pineapple products........…………………………………….…….. 87

Table-34: Constraints faced by pineapple farmers and intervention points………………………… 87

Table-35: Economics of pineapple cultivation................................................……………………….. 89

Table-36 : Economics of cash crop plantations ……………………………………………………………….. 91

Table-37: Area and Productivity of pulse cultivation…………………………………………………….… 94

Table-38: Comparative practices of subsistence and progressive farmer………………………..…… 97

Table-39: Wholesale and retail prices of pulses coming from various markets……………………… 99

Table-40: Constraints faced by pulse farmers and interventions points ……………………………. 100

Table-40: Economics for blackgram cultivation …………………………..………………………………….. 101

Table-42: Economics for various pulses …………………………………………………………………………..

103


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List of figures

Figure 1: Key steps, activities, and outputs achieved ......................................................................... 11

Figure 2: Map of Tripura ..................................................................................................................... 14

Figure 3: Key steps involved in selection of value chain activities .............................................. 36

Figure 4: Value chain Map for Potato …………………………………………………………………………………… 42

Figure 4: Value chain Map for vegetables …………………………………………………………………………….. 55

Figure 4: Value chain Map for fish culture ……………………………………………………………………………. 69

Figure 4: Value chain Map for pineapple …………………………………………………………………………… ...83

Figure 4: Value chain Map for pulses ……………………………………………………………………………………. 96

List of boxes

Box 1: 3 M Model Approach ..................................................................................................... 13

Box 2: case study of cold storage and transport service provider ............................................... 20

Box 3: Potential for improving horticultural productivity ......................................................... 23

Box 4: Case study of a typical landless farmer ......................................................................... 25

Box 5: Rising poultry demand in the state ............................................................................... 29

Box 6: Case study of Baba Saheb SHG, West District ................................................................ 34

Box 7: Factors that affect fish culture productivity ................................................................... 67


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Acknowledgement

At the outset we would like to express our sincere thanks to Mrs. Jayasree Mukharjee (IAS),

Joint Secretary & Director of Ministry for Development of North East Region (DoNER) for

giving us this opportunity to undertake this important livelihood study for north eastern states.

We would like to thanks Mr. Alok Kumar Srivastava (IAS), Project Director, NERLP and his

entire team for the constant guidance and support during the entire study period. A number of

meetings with him at Guwahati and Delhi helped in smooth completion of the assignment. We

would again like to thank him for his and team support for facilitating stakeholder’s workshop in

the state. NERLP feedback on the draft report has helped us improve suitably to make it a useful

project document.

We would like to sincerely thank Mr. Biswajit Sen, Senior Rural Development Specialist &

Nathan M Belete, Senior Rural Development Economist at World Bank for their constant

support in ensuring complete ion of the study, the first meeting at World Bank office along with

PD, NERLP helped finalize the report template. Subsequently, the initial feedback after the first

field visit helped in finalizing selection of 4 to 5 economic activities for undertaking detail value

chain analysis in the state. We would also like to thank Varun Singh, Social Development

Specialist and Dr. Amarendra Singh from World Bank who also shared the important feedback

on the draft reports.

We would also like to thanks state level officials including Shri Kumar Alok, Commissioner &

Secretary, Shri D. Basu, Rural Development, Joint Secretary, and District Collectors of North

and West Districts, PD, DRDA (North District), PD, DRDA (West District) for their critical

support during the study. We would also like to thank DRDA staff who facilitated and organized

village meetings and also accompanied us to the villages. We would like to thank state level

officials and resource persons including Mr. Shantiriyan, Director, Fisheries Department, Mr. C.

R. Bondopadhya, Director, Horticulture Department, Miss Marie Korner, Socio economist, Indo

German Cooperation Project, Mr. R. N. Coudhury, MD, Tripura Co-operation Milk Milk

Producer Union Ltd., Agartala, Mr. Mukesh Thakkar, AGM, NABARD, Mr. Dhiren Das, Senior

Executive, RGVN, Mr. A. K. Chanda, Joint Director, Directorate of Statistics and Economics and

Md. Selim Reza, Chief Executive Officer, INBAR who spread their valuable time to provide us

important information and relevant documents.

We would like to thank Dr. Binay Singh, Director, NIRD, Guwahati, Prof. P. C. Sikligar,

Assistant Professor, NIRD, Ashim Kumar Das, Assistant General Manager (Business

Development), NEDFi, Guwahati who shared with us their understanding of the north eastern

states.

We would like to thank a large number of villagers who spent their valuable time with us in

villages and also a number market players including whole sellers and retailers, processing

units, transport services and cold storage services at Agartala and in district markets.

MART Team


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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 through creation

of sustainable livelihood for the rural poor, particularly for women. The project has commissioned

‘Livelihood Based Agri Business and Market study’ in Tripura, Mizoram, Nagaland and Sikkim to

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

all four states. MART signed a MoU with DoNER and closely coordinated with Project Director,

NERLP based at Guwahati for finalizing study design, plan, fieldwork and information to key state

stakeholders. The primary objective of the study is to assess economic opportunities in both farm and

non-farm activities in the project area. NERLP assumes that intensive and innovative use of these

local opportunities can result in enhanced livelihood opportunities and incomes for the communities.

MART used 3M approach for the study that looks at ecosystem at the village level, market and

enabling environment to analyze the livelihood scenario and challenges. Study looked at existing

resources, skills, infrastructure and support services, markets for poor, major livelihoods of poor

involved in agriculture, livestock and non-farm activities to suggest practical interventions.

The study followed an 8-step approach involving secondary literature review, stakeholders’

consultation, preliminary field visits, village and market survey, writing draft report and final report

after receiving feedback from NERLP and the World Bank. Study covered 13 villages in two project

districts with DRDA support and conducted FGDs and individual interviews with villagers, state and

district officials. Market study involved interviews with wholesalers and retailers, transporters,

private cold storage owner, and processing units at Agartala, North district and West District.

Tripura with a population of 31.91 lakhs (2001 census) is located in the southwest north eastern

region. 31% population is tribal and is spread across the state. Tripura shares 84% of its border with

Bangladesh and the porous border allows trade of a number agriculture and allied activities between

the two countries. Around 60% of the area is hilly and forested. Though the state has good social

infrastructure in terms of education but unemployment is high due to limited local opportunities.

While planning commission estimates poverty level at 34.4 percent the state government puts it

higher at 55 percent. The per capita income is low and below the national average. Key trends that will

impact the livelihoods scenario in the state are land fragmentation leading to shifting cropping

patterns with more focus on horticulture and cash crops, better communication, road connectivity,

and marketing infrastructure leading to improved marketing functions, booming service sectors

offering employment opportunities, modified APMC act leading to more private sector participation,

and impetus to state economy by opening business corridors with Bangladesh.

There is good availability of basic infrastructure facilities such as road, electricity, transport,

telephone, and drinking water in project area that facilitate marketing functions and help set up

processing units. Support services such as cold storages are available in big towns but small farmers

are not avail to them due to small volumes and long distances. State government could set up more

cold storages at strategic locations after doing a feasibility study to support small and marginal

farmers.

There is a good network of market infrastructure in the state with 474 primary markets, 64 wholesale

assembling markets, 21 regulated markets, 6 municipal markets and 1 terminal market at Agartala.

There are two big wholesale markets at Agartala. Permanent shops exist in all villages, vendors and


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traders all villages in deal in agriculture, allied and non-farm activities. Weekly markets with

cemented platform and shed exist in most villages and offer opportunity of selling directly to the

consumers.

The state economy is largely rural and agricultural and is constraint by availability of only 27% of its

geographical area for cultivation. Rural community is engaged in three major categories of

livelihoods; agriculture based, livestock based and nonfarm based. It was found that 85% community

is engaged in livestock followed by 68% in agriculture and 46% in non-farm activities indicating

involvement in multiple activities to sustain family needs.

95% of total operational landholding in the state is below 2 hectare and account for 75% of operated

area. Average size of landholding has declined from 1.25 hectare in 1976 to 0.6 hectare in 1995. It has

impacted the cropping pattern in the state with more inclination towards horticulture crops to earn

higher income per unit of land compared to traditional paddy crop.

Farmers are engaged in a number of cereals (predominantly paddy) and horticulture crops

throughout the year. Farmers procure inputs individually locally from government and private players

on as-and-when-required basis when demand is high and supply is low resulting in higher inputs

costs. Farmers use traditional and different package of practices even within one village. Use of power

tiller has picked up for land preparation as it saves time and cost. Majority of farmers sell agriculture

produce in raw form to traders within the village and in nearby towns and realize different prices

depending upon supply and demand situation. Creation of proper storage facilities including cold

storage facility in nearby vicinity can help farmers realize better returns.

State is a net importer of most agriculture products. Agriculture in the state has the potential to

develop but is constrained not just by the terrain but by a lack of development of irrigation, limited

use of modern inputs, higher inputs costs, improper use of package of practices, low productivity, and

inadequate access to agricultural extension and markets. There is tremendous potential for the

expansion of horticulture and plantation crops throughout the year. Organizing poor for collective

sourcing of inputs and marketing, adoption of better package of practices, simple value addition such

as sorting, grading and cleaning, marketing information, and direct linkage with wholesalers, and

handholding field support can help poor farmers realize higher returns from the agriculture.

Livestock rearing is done throughout the year in the state mainly as supplementary source of income.

Fish culture, backyard poultry, cow rearing, and goatery are the predominant activities done by

villagers. Government support to fish culture has seen many small famers shifting to it due to higher

returns. Piggery is popular mainly among tribal. Most villagers rear local breeds only. Inputs for most

livestock activities are available locally within the village. Fish seed is available through fishery

department. Majority of farmers sell livestock produce to traders within the village and in nearby

towns.

There is a good potential to promote livestock activities in the state as state is a net importer of

livestock and its byproducts. The livestock sector is constraint by low livestock productivity, adoption

of traditional set of practices, high inputs costs, marketing information and inadequate availability of

extension services. Organizing poor for collective sourcing of inputs and marketing, adoption of better

animal management and rearing practices, marketing information, and field based handholding

support can help poor villagers realize higher returns from livestock activities.

Villagers are engaged in a number of non-farm activities such as agriculture labours, stitching,

electrician, insurance agent, hotel, army, embroidery, knitting, school teacher, and carpenter etc.


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Most of activities in service sector provide employment outside the village and require them to

migrate. Women have acquired skills in stitching, embroidery, and knitting but only a few are able to

earn livelihood out of them due to limited local demand. Imparting skills for automobile repair,

mobile repair, cobblers that has local demand can offer livelihood to rural youths. Service sector

opportunities such as banking, insurance, health, hospitality, and communication offer opportunities

in nearby towns areas and youths can be trained to tap these opportunities.

A large number of SHGs have been promoted in state till 2008-09. There were 27010 SHGs in the

state with 11131 SHGs in West district and 4506 SHGs in North district. Under SGSY. DRDA facilitate

both financial and non-financial supports to SHGs. SHGs are engaged in fish culture, piggery,

goatery, cow rearing, handicraft, poultry and agriculture, duckery, rubber plantation, tent house,

incense stick making, betel vine. However, these activities are hardly successful and SHGs face issues

related to lack of proper marketing plan, low productivity levels, low volumes and high overhead

costs, limited holding capacity of agriculture produce, and lack of marketing information and

linkages. SHGs would require marketing handholding support and extension services.

There are number of activities that project can promote among the poor that includes potato

cultivation, vegetable cultivation, fish culture, pineapple cultivation, piggery, goatery, pulse

cultivation, cow rearing, rubber plantation, and areca-nut cultivation. However, five activities namely

potato, vegetables, fish culture, pineapple and pulses have been shortlisted in consultation with PD,

NERLP and the World Bank staff for a detail value chain analysis using criteria such as interest and

capacity of poor, possibility of engaging large number of poor, project mandate, market demand and

gestation period. Value chain helps to identify opportunities for poor at every stage of product

movement from producers to consumers based on which intervention strategies can be designed.

The supply for select five products in the state is less compared to their demand and therefore, these

can be promoted in the state. All five products are feasible from technical, market and economic point

of view. The key constraints involved in value chain products are high costs of inputs as most of these

are sourced from outside the state, poor quality of seeds and other inputs, use of traditional practices

and lack of extension services, low productivity levels, and low affinity among farmers for collective

inputs sourcing and output market.

Value chain activity Unit Investment/unit Return on investment

Potato cultivation using TPS 1 kani (o.4 acre) Rs 15815 115%

Vegetable (chili) 1 kani (o.4 acre) Rs 12050 103%

Composite fish culture 1 kani (o.4 acre) Rs 62326 41%

Pineapple cultivation 1 kani (o.4 acre) Rs 42396 147%

Pulse (blackgram) 1 kani (o.4 acre) Rs 6195 151%

The activities to be performed by the project involves selection of beneficiaries and cluster, social

mobilization and institution building of poor, preparation of business plan with the community,

organize technical and business trainings, market exposure visits, establish backward and forward

linkages with resource agencies, facilitate market linkages and monitoring and evaluation, and

promoting higher order institutions such as federation and producer groups for collective actions.

Project needs to create a chain of marketing professionals at head office, state level and district level

and para professionals at the village level to execute the implementation plan.


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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. The project has commissioned

‘Livelihood Based Agri Business and Market study’ in Tripura, Mizoram, Nagaland and Sikkim.

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. MART placed a two member team 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 primary objective of the study is to assess economic opportunities in both farm and non-farm

activities in the project area. NERLP assumes that intensive and innovative use of these local

opportunities can result in enhanced livelihood opportunities and incomes for the communities.

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

1.2.1 Infrastructure, resources and support services

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 economic 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.

1.2.2 Value chain analysis

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.


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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

Figure 1 illustrates various stages of the study in the form of key steps and activities followed and outputs

achieved.

Figure 1: Key steps, activities, and outputs achieved

Activities Key Steps Outputs

Reviewed of project literature and reports

Studied livelihoods initiatives such as NERCRMP in north east states.

Studied secondary reports

Met World Bank and Project Director, NERLP at New 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 state rural development office regarding MART field visit and coordination support

Met state nodal officer, rural development department officer at Agartala

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 two 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. fish culture, potato, vegetables, pulses, and pineapple for value chain analysis

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

Finalized field visit plans

Placed field teams

Visited 10 villages in two districts and

Step 5

Fieldwork -2 (Interactions in

Completed livelihood survey in villages and markets

Collected information for value chain


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interviewed producers/farmers

Met market players in wholesale and retail markets at Agartala and project districts.

Met line-department officials

villages and markets)

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

Final report as per study objectives defined earlier

1.3.1 Key features of study methodology

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

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

The Project Director, NERLP intimated the state government’s rural development department about

the proposed study to seek their cooperation during the field visit. Joint Secretary, Department of

Rural Development introduced MART team to DRDA of both project districts and also facilitated

meeting with heads of government agencies at state level.

MART team got in touch with DRDA of both project districts to finalise village selection for

undertaking village survey and meeting with state line department officials. DRDA staff accompanied

MART for village visit and facilitated meetings with villagers.

MART used 3M approach to capture the existing livelihood scenario as described below.

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 popular

activities were selected for the study; in the second phase, value chain analysis of the livelihood

practices, productivity and marketing challenges was done.

Thirteen villagers 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. List of villages is annexed.

Interviewed value chain players like the producers, wholesalers, retailers, transporters, cold storage,

processors, and government institutions at village, block, district, and state level. List of stakeholders

met is annexed.


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3M Model Approach

3M is a systematic approach to

livelihood based on the three tenets of

micro finance, micro market and micro

planning. The model primarily provides

a tool to systematically map the local

resources, skills, support services,

markets and enabling environment for

developing business plans. This

process of 3M is as follows: surveys are

conducted to assess the current

available resources as well as the

existing market demand. Once

established, the levels of supply and

demand determines the selection of

appropriate livelihoods activities.

Analysis of information collected from villagers, market players and enablers leads to field based practical strategies to

successfully launch and manage the activities. MART has extensively used 3M (Micro Finance, Micro Market and Micro

Planning) Model for livelihood promotion, for resource mapping under various poverty alleviation projects across India such as

APRLP, WORLP, OTELP, APDPIP, MP-DPIP and Rajasthan-DPIP. Based on its successful implementation a User Manual has

been prepared with support of DFIDI and CARE India for its replication by agencies engaged at grass root level in poverty

alleviation. The model has been presented at national and international seminars in USA, Philippines, Sri-Lanka and Thailand.

1.4 Limitations of the study

The information from villagers was collected using FGD approach and therefore primary data

collected from them may not exactly match with data available with government department.

Market related data has been collected from wholesalers and retailers in the wholesale and retail

markets by conducting personal interviews. Therefore, data may represent trends only but accuracy of

data may not be entirely reliable.

Discrepancy has been noticed in various state level data available from various secondary sources. Self

judgement has been used while using the data from a particular source.


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Chapter 2: State Profile and Livelihood Issues

2.1 State profile

The Location: Tripura is located in the southwest North Eastern Region. The state is connected with

Guwahati, by National Highway (NH-44) the

distance between Guwahati and Agartala is about

587 Km. The distance of Agartala from Siliguri

(which is considered the entry point to the North

East) is about 1065 Km. Tripura shares 856 Km long

international border with Bangladesh, which is

about 84% of total border of the State.

Most of the important cities of Bangladesh

(including Dhaka) are within 150 km distance of the

towns in Tripura. The direct distance between

Agartala (Tripura) and Kolkata (through

Bangladesh) is only about 350 km. The project for

extension of railway line up to Agartala is under

implementation. The state capital Agartala is

connected by Air to Kolkata and Guwahati.

Figure 2: Map of Tripura

The Land: Tripura is among the smaller State in the North Eastern Region, with a total area of about

10492 sq. km. only, out of which about 60% area is hilly and forested. The cultivated area is about 27%

only. The State gets fairly high annual rainfall of about 210 cm, well spread over the year.

The People: The State has a total population of about 31.91 lakhs (2001 census), which is the 2nd

highest in the North Eastern Region, after Assam. The average density of population is also fairly high, at

304 per Sq.km, particularly considering the fact that 60% of the area is sparsely populated being forested

and hilly. Hindu constitutes 85.6%, Muslim 8%, Christian 3.2%, Buddhists 3.1 and 0.1% of population.

Tribal constitutes 31% of total population and are spread throughout the state. There are around nineteen

tribal communities, Tripuri is the leading one that constitutes 55% of total tribal population. The other

tribal group includes Halam, Mog, Kuki, Noatia, Garo, Munda, Lushai, Oraon, Santhal, Uchai, Khasi, Bhil,

Chaimal, Lepcha and Bhutia. The overwhelming majority of the tribal people (97.4per cent) reside in rural

areas. The literacy rate in the State is 74%, which is much higher than national average and 2nd highest in

the North Eastern Region, after Mizoram. The State has a good social infrastructure in terms of

educational and health institutions. The main languages spoken in the State are Bangla, Hindi and

English.

The Economy: The State has good agro-climatic conditions, suitable for a large variety of

Agro/horticultural crops. Further, industrial development has also been picked up over the past few years.

In fact, during last about a decade, the state has recorded impressive growth rates. The annual average

growth rate of overall economy in real terms for Tripura during 2003-04 was 7.75% against national


MART, Noida 15

average of 5.70%. The sectoral share of industries sector in the GSDP during the period 1993-94 to 2003-

04 raised from 11% to 22.15%. The industries and service sector together contribute 74.74% in the GSDP

during 2003-04. The per capita income of the state rose from Rs. 5534 in 1993-94 and further to Rs.

20,357 in 2003-04. On the other hand, per capita income of India rose from Rs. 7690 in 1993-94 to Rs.

20,989 in 2003-04.

2.2 Key indicators for project districts

The table 1 below illustrates key development indicators for the Tripura state, west district and North

district and also presents a comparative picture.

Table 1 : key development indicators for the Tripura state, west district and North district

Indicator State West District North District

Population 31,99,203 15,32,982 5,90,913

Total area (ha) 1049169 299787 210755

Forest land (ha) 629429 179872 160134

Literacy rate (2005) 80.14 83.81% 78.53

HDI 0.59 0.61 0.51

Education index 0.73 0.77 0.60

Health index 0.79 0.82 0.74

Income index 0.25 0.26 0.19

Number of cultivators 311690 114900 95000

Agriculture labours 278642 69000 36000

Number of SHGs 27010 11131 4506

Number of markets 566 238 112

Source: economic survey 2008-09, NABARD’s potential linked credit plans

2.3 Rural livelihood and poverty issues

(Source: Economic review 2008-09 and Human Development Report 2007)

The State has made commendable progress in terms of absolute levels of economic growth, its per

capita income is low and below the national average. The compound annual growth rate of NSDP (at

constant prices) was 5.2 per cent in the 1980s and 6.7 per cent in the 1990s. In 2001–02, the per

capita income of the State was Rs 18,759 (the Gross National Product or GNP per capita at factor cost

in current prices was Rs 20,047 the same year). The estimate for Tripura in the RBI report is a little

lower at Rs 17,459.

As per NER vision 2020 document the unemployment rate among youth in 15-29 years age group in

year 2004-05 is very high at 33% compared to 5.7% at the national level. This is due to low

marketable skills among them.

The Human Development Index (HDI) for Tripura for the year 2001 was 0.59. The achievements in

human development as measured by the HDI in Tripura correspond to the medium level of

achievement at the international level.


MART, Noida 16

The Planning Commission estimate of poverty in Tripura is 34.4 per cent. However, poverty estimates

by the Government of Tripura puts it at 55 per cent which is higher than the Planning Commission

estimates in 2001-02.

Agriculture remains important, although the contribution of the primary sector to SDP has declined

steadily, from 47 per cent in 1980 to 30 per cent in 2002. The share of the secondary sector was at

20% and the tertiary sector accounted for over 50 per cent of SDP.

The state has high levels of unemployment, particularly among urban areas and among young men

and women. In 1999–2000, the usual status unemployment rate among young men in urban Tripura

was 21.9. In other words, more than one in five young men was unemployed and one in six young

women was unemployed.

In 2006–07, Tripura topped all States of India in respect of the person-days of employment generated

per household under NREGA. The generation of 87 days of employment per beneficiary household,

very close to the stated goal of 100 days in the Act, is “an unprecedented achievement in the history of

social security in India” (Dreze and Oldiges 2007).

While the economy of Tripura is still largely rural and agricultural (83 per cent of the population live

in rural areas and 30 per cent of the Net State Domestic Product, or NSDP, is from the primary

sector), the land available for cultivation is relatively restricted at only 27 per cent of the geographical

area. Rice is Tripura’s main crop: 91 per cent of the cropped area is sown to rice. Other important

crops are pulses, oilseeds, potato and jute and a variety of fruits, vegetables and spices, covering

around 73,000 hectares, are grown in the State.

The economy of Tripura is characterized by the near-absence of an industrial base, with

manufacturing accounting for less than 3 per cent of NSDP. As per third census, small scale industry

2001—02 Tripura accounts for only 7.7% registered and unregistered SSI units in the north east

region. The major industries in the State are based on natural gas and plantation crops, specifically,

rubber, tea and bamboo. There is also a traditional handloom and handicraft industry.

Agriculture in the State has the potential to develop but is constrained not just by the terrain but by a

lack of development of irrigation, limited use of modern inputs, and inadequate access to agricultural

extension and markets. There is tremendous potential for the expansion of horticulture and

plantation crops. Water bodies, including those within forests, can be utilized for fishery activities.

60 per cent of the geographical area in Tripura is under forests. More than 70 per cent of the forested

land is out of the control of the State administration (including the Autonomous District Council),

since its control is vested with the Central Government (through the Forest Conservation Act 1980).

The use and development of forest areas is particularly relevant to the creation of sustainable

livelihoods for the tribal peoples.

Tribal constitutes 31% of total population and are spread throughout the state. There are around

nineteen tribal communities. Tripuri is the leading one that constitutes 55% of total tribal population.

The first-ever census by the forest department in 2007 found 27,278 shifting cultivators families

(1,36,000 persons) or jhumia dependent on jhum cultivation as their primary source of livelihood.

This constitutes nearly 10% of tribal families in the state and is a matter of concern since jhum is a

high-risk system of cultivation and in the current circumstances (with reduced years of the jhum

cycle) cannot provide an adequate means of livelihood. However, it is still an important

supplementary income and inputs in the daily lives of tribal people and provide sometime difficult to


MART, Noida 17

quantify benefits from the collection of fruits, bamboo shoots and other edible produce, from fodder,

from construction material for houses, and from medicinal plants.

West Bengal and Tripura were the first two States in the country to implement the Joint Forest

Management (JFM) programme. As of 31 March 2007, a total of 472 JFM groups involving 44,882

families have been established. The majority of beneficiaries of JFM are tribal families.

2.4 Key livelihood trends

New employment opportunities will emerge in service sector: The contribution of tertiary

(service) sector in the SDP is increasing – from 31% in 1960-61 to 55% in 2002-03. Therefore, in future

more employment opportunities will emerge in the service sectors such as transport, storage,

communication, retail, hotel, hospitality, health, tourism, finance, banking and insurance, and public

services. Most of the jobs would require low skilled staffs which poor can take up undergoing short

duration training courses.

Business corridors with Bangladesh will boost Tripura’s rural economy: Government’s

agenda of opening of three business corridors with Bangladesh (15 km road link between Agartala and

Dargah in Bangladesh, 75 km water link between Chittagong Port and Sabroom in Tripura and 12 km rail

link between Agartala and Akhaura) will boost outflow of agriculture and allied products to markets

within India and Bangladesh.

Communication and road connectivity will promote marketing activities: Penetration of

mobile and media in villages will spur economic activities by extending marketing information to the

small and marginal poor producers. Private mobile companies operate throughout the state. Road

connectivity till small villages will help in transportation of products/services from villages to markets in

towns and city. Broad gauge rail linkage will facilitate transport outside the state.

Small and marginal farmers will shift to cash crops: 90% of farmers in the state belong to small

and marginal category due to land fragmentation; from 1.25 hectare per farmer to 0.6 hectare per farmer

in 1995. This has affected the cropping pattern in the state and there is an increasing trends towards cash

crops such as tea and rubber plantation and fishery culture. This would require creation of necessary

infrastructure such as cold storage chains, rural godowns, marketing infrastructures, setting up

processing units to boost up agriculture activities. Simultaneously, extending business development

services, financial inclusion, and technical support to farmers would be critical to ensure small and

marginal farmers benefit from cash crops.

Marketing infrastructure can help build rural entrepreneurship: A network of marketing

infrastructure (474 primary markets, 64 assembling wholesale markets, 21 regulated markets, 6

municipal market and 1 terminal market) exist in the state that could be used for enhancing

entrepreneurship among the poor producers by undertaking market exposures and capacity building

initiatives.

APMC act will spur private sector investment in the state: Modification of APMC Act by state

government in 2007 offers huge opportunity for greater private sector participation especially the big

corporates. It has attracted several big corporate to enter the state and would promote ancillary units and

micro, small and medium size units in the state.


MART, Noida 18

Inclusive social agenda is critical to economy growth: Past experience shows that civil unrest

results into roads blockage and de-linkage with other states adversely impacting the livelihood of the

villagers. The prices of agriculture inputs and commodities shoot up making setting up of new enterprises

unviable. A conducive socio-economic environment will help poor to benefit from economy growth in the

state.


MART, Noida 19

Chapter 3: Livelihood Profile

The success and growth of poor’s livelihood depends on enabling environment in terms of support

services provided by government and private players, availability of basic infrastructure facilities, training

and skills promotion facilities, marketing information and infrastructure, private sector participation,

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

entrepreneurial environment. At an individual level viability of a livelihood is influenced by

entrepreneurial attitude of the community, organization and management practices and decisions related

to input sourcing, adoption of package of practices, technology, market access, access to finance, and

access to government support for the sustainability of livelihoods.

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

services used by villagers, markets availability and linkages, existing livelihoods pursued by villagers, and

livelihoods pursued by SHGs.

3.1 Existing infrastructure and support services

The table 2 below captures the existing infrastructure available in villages and support services accessed

by villagers.

Table 2: Availability of infrastructures and support services

Infrastructure and

support services

Availability within

village (%)

Availability in

nearby location (%)

Distance travelled

to access services

(in km)

Road 100 - -

Electricity 100 - -

Telephone 100 - -

Transport 100 - -

Drinking water 100 - -

School building 90 10 2-5

Post office 80 20 2-12

Community building 80 20 -

Rice mill 80 20 2-4

Weekly market (Haat) 70 30 2-4

Irrigation (Dug wells) 60 - -

Veterinary services 60 40 2-12

Market yard 20 80 2-10

Nursery 20 80 2-12

Skill training centre 20 80 2-12

Bank 10 90 2-12

Oil expeller 10 90 6-12

Cold storage 0 100 2-55

Source: Field survey


MART, Noida 20

Basic infrastructure such as road, transport, electricity, drinking water is available in all surveyed

villages. This makes it possible to promote marketing activities and also setting up electricity based

processing units.

Most of the services are located at nearby block or sub divisions such as Sonapura, Bishalgarh,

Rabindranagar, Kathalia and Agartala in West district and at Kumarghat, Dharamnagar and

Panisagar in North district and are easily accessible to villagers.

Due to availability of good roads and transport facility farmers find it convenient to sell directly to

wholesalers located in nearby block and sub divisions.

Telephone and mobile phone facility is available in all villages. This helps progressive farmers in

accessing marketing information and taking right decisions for selling of produce.

Availability of schools in most villages has ensured high literacy levels in the state. Weekly markets

are present in most villages and help poor farmers sell small volumes directly to consumers realizing

better prices.

Availability of electricity has ensured that rice mills are present in most villages and oil expeller units

have also come in few villages. It helps ensuring value addition taking place at the village level and

accruing higher prices to villagers.

Veterinary services are available in many villages through veterinary department however their timely

availability is a constraint making villagers to try traditional practices first. Veterinary services are

curative in nature leading to low adoption of standard practices among villagers.

Skill training centre for stitching and weaving are present in big villages. Though banks have limited

local presence MFI such as Bandhan extend small loans to villagers for consumption as well as small

business activities.

Cold storages are located at Melaghar and Agartala in West district and Kumarghat in North district.

Due to long distances involved small and marginal farmers don’t find it viable to stock horticulture

produce in cold storage and they tend to sell the produce immediately after the harvest resulting in

distress sales. Setting up new cold storages after doing feasibility study will help farmers in stocking

the produce and realize better prices.

Box 2: c ase study of cold storage and transport service provider

Bhuturia Brothers Limited Cold Storage, Agartala

It is a private party run cold storage established in 1949. Total capacity of cold storage for Potato is 2000 MT per season and for fruits it is 10,000 bags. Mainly 4 to 6 agriculture items are kept in the cold storage that includes apple, mussambir, Grapes, Badana. While potato is charged on season basis other items are charged on monthly basis. Charge for potato is Rs. 100 per quintal per season, for apple per bag is Rs 13-14 per bag, mosambi is Rs. 15 per bag, grapes is Rs 8-10 per bag, and pomegranate is Rs 10- 12 per bag. Pineapple and tomato is not kept in cold storage as these items damage other items. Labour charge for loading and unloading is borne by the wholesalers and retailers. Its head office is located at Kolkata. There are 6 staffs and 2 security staff to manage the cold storage. Staff is paid Rs 2000 to Rs 4000 and free accommodation facility. Monthly salary to each security staff is Rs 2800 per month.

Paul Road Ways Transport service, Agartala

It has been operating for over 15 years. It has four wheelers (3-4MT), six wheelers (8.5 MT to 9MT) and 10 wheelers transport facility. It gets order for transporting mainly potato, onion and other vegetables. It carries potato from Guwahati (Beltala Godown) to Agartala and vegetables from Guwahati and Shillong to Agartala. Distance from Guwahati to Agartala is nearly 600 km and Shillong to Agartala it is 450 km. 5 to 10 trucks come daily from Guwahati and Shillong. The transport cost from Guwahati to Agartala by a ten wheeler truck is Rs 28000 to Rs 30000 and Rs 13000 to Rs 15000 by a four wheeler mini truck. Packaging is done by the party that places the order. While cabbage is transported in loose, tomato in wooden box of 27-28 kg each, cauliflower in 30-35 kg bag and potato in 50kg bag. Labour charge for loading is Rs 4 per quintal and for unloading it is Rs 4 per quintal.


MART, Noida 21

3.2 Markets accessed by villagers

The table 3 below illustrates various types of market facilities accessed by villagers, number of villages

catered by these markets and products available in these markets.

Table 3: Types of market facilities

Types of facilities Availability

in villages

(%)

Number

per village

Products availability

Within village

Permanent shops in the

village

100 5-110 Grocery items, tailor, electrical, rice

mill, hardware, stationeries, cement,

chemist, cloth, and tea stall

Temporary shops in the

village

30 20-100 Fish, vegetables, meat, betel, snacks,

tea stall

Vendors of the same village 20 10-18 Fish, dry fish, vegetables, pig, goat

Vendors coming to village

per day

80 2-15 Milk, cloth/garment, cosmetics,

stationeries, toy, snacks, meat, fish

Outside village

Weekly markets 70 1 Agriculture produce and livestock

Wholesale markets Agartala and

sub divisions

- All households commodities,

agriculture and livestock

Source: field survey

Permanent shops are available in all villages; more number in villages located away from a town

market place. Temporary shops exist in few villages where farmers sell in local haats and seasonal

shops also come up during the harvest season.

Vendors from nearby villages visit most villages and sell variety of consumable items. Traders also

visit from near places and procure vegetables and livestock from haats and villages.

Weekly markets exist in most villages which have been set up with government support. These

markets have cemented platform and sheds making it convenient to run them throughout the year.

Wholesalers for agriculture produces and livestock are located at blocks, sub divisions and Agartala.

Wholesalers at Agartala procure products from within and outside the state and in turn sell to

wholesalers and local retailers. Villagers also sell agriculture produce and livestock products directly

to wholesalers. Most of the wholesalers we met during the study have been in business for over 20

years and pass on the trading skills to next generations. Some wholesalers also act as commission

agents and charge 6-7% commissions from farmers by linking them with wholesalers.

In West District, Agartala is the major market accessed by villagers for sourcing of inputs, households’

commodities and selling of agriculture and livestock based produce. In North District, Dharamnagar

and Silcher (Assam) are such major markets.


MART, Noida 22

3.3 Livelihood profile

The livelihoods pursued by rural community can be divided into three major categories; land-based

livelihoods, livestock based and non-farm based. Majority of the community is found to be engaged in

livestock rearing (85%) followed by agriculture (68%) and non-farm activities (46%).

Under livestock based livelihoods, majority of villagers are engaged in poultry, piggery, fish culture, goat

rearing, and cow rearing mainly as a supplementary source of income. Pig rearing is popular among tribal

population. Broiler (poultry) and fish culture was found to be primary source of income for many

households. Though fish culture has picked up in last few years but state demand is still met from fish

coming from Bangladesh, Andhra Pradesh and West Bengal.

Under agriculture, majority of villagers are engaged in paddy production where area under production is

highest. The other prominent agriculture activities include vegetable cultivation, potato cultivation and

arecanut plantation. Few are engaged in cash crops such as fruit cultivation (pineapple, water melon,

jackfruit, litchi), rubber plantation, and tea garden. Pulses production has also gain attention in last few

years.

Under non-farm based livelihoods, villagers are engaged in number of skilled and un-skilled livelihoods

and prominent among them are agriculture labour, government jobs, drivers, insurance agents and petty

businesses.

The following section analyses the three categories of livelihoods pursued by the rural community in

surveyed villages.

3.3.1 Land based livelihoods

3.3.1.1 Landholdings

The table 4 below illustrates class of landholdings, percentage of operation land holding, average size of

land holding and the area operated.

Table 4: Classification of landholdings

S.No Class of landholding Number of operation land holding

Average size of land holding (ha)

Area operated (%)

1 Marginal(<1 ha) 247380 (82%) 0.32 44 2 Small(<1-2) 40409(13%) 1.38 31 3 Medium and large (> 2) 13238(5%) 3.38 25 301027 0.60

Source: Economic Review, 2008-09 The above shows that 95% of total operational landholdings in the state are below 2 hectare and these

account for 75% of operated area and are managed by marginal and small farmers. As per economic

review reports the average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to

0.6 ha in 1995-96 due to fragmentation of land arising out of local socio-economic compulsions. This has

impacted the cropping pattern in the state and villagers are showing more inclination towards cash crops,

horticulture and fish culture which give higher income per unit of land compared to paddy cultivation.


MART, Noida 23

It is found that around 68% of rural households possess agriculture land and 32% households are

landless. Majority of the farmers possess land patta and several of them have encroached upon the

common land.

3.3.1.2 Major crops

The table 5 illustrates major crops grown in villages and percentage of households growing these crops.

Table 5: Major crops in villages

Major crops Availability in

percentage of villages

Percentage of households

involved

Paddy 100 31

Vegetables (except potato) 90 24

Potato 90 15

Areca-nut 60 20

Pulses 50 1

Pineapple 50 8

Rubber plantation 40 2

Fruits (except pineapple) 30 5


Note: during the survey it was decided that potato and pineapple are important crops from the point of

view of small and marginal farmers therefore information related to these two crops is collected and

represented separately.

Paddy cultivation is the main crop in the surveyed area which is done in all the villages.

Summer and winter vegetables and potato cultivation is done as cash crop in almost all villages by

farmers who are willing to take some risk for higher gains. The major vegetables produced are brinjal,

chili, tomato, lady finger, cabbage, peas, pumpkin and cauliflower.

Areca-nut is grown mainly as a homestead crop. Pulses (moong, blackgram and tuar) production has

picked in last few years after the focus by the agriculture department.

The major fruits grown in the state are mango, orange, pineapple, jackfruit, litchi and banana.

Horticulture department has promoted several crops such as cashew nuts and floriculture however

small and marginal farmers would find it difficult to manage these activities successfully without

proper handholding and marketing support.

Potential for improving horticulture productivity (source: horticulture department)

Tripura is the highest fruit producing state among North East states. However, productivity of Tripura is below the

national average. Against 20MT/hectare national average of productivity Tripura produces 15.7 MT/hectare. The national

average of productivity of pineapple is 27MT/hectare as against state productivity of 18.15 MT/ha. This is due to

traditional practices followed by the famers. The horticulture department has set a target of improving productivity to

44000 plants per hectare from current level of 20000 plants per hectare. Similarly, for mango currently 50 plants are

grown in one hectare that can be scaled to 400 plants per hectare.


MART, Noida 24

The local people have traditional skills for growing horticulture crops in the state. There is a plenty of

scope to upgrade skills of the growers to make this activity more profitable by enhancing crop

productivities through introduction of new technologies, proper application of fertilizers, use of micro

irrigation techniques, better maintenance of fruit gardens, and high density plantations. In case of

pineapple 20000 plants are grown in one hectare of land that can be scaled up to 44000 plants per

hectare.

It is observed that in last few years few small farmers have shifted from paddy cultivation to rubber

cultivation due to higher and assured returns. However, not many farmers are able to do so as

engagement in cash crops such as rubber plantation, pulses, vegetables and fruits require acquiring

new skills, higher inputs costs, more engagement with market players which poor farmers find it

difficult to do in absence of any handholding and marketing support mechanism.

3.3.1.3 Seasonality

The table 6 below captures the seasonality of major crops grown in villages in terms of production,

marketing and production and marketing season

Table 6: Seasonality of major crops grown

Major crops Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Paddy P2 PM2 PM2 P1 P1 P1 PM1 PM1 P2 P2

Pulses PM2 PM2 P1 P1 PM1 PM1 P2 P2

Areca-nut P P P P P P P PM PM PM PM P

Potato PM PM P P P PM

Vegetables PM PM PM PM PM PM PM PM PM PM PM PM

Pineapple P P P PM PM PM P P P P P P

Fruits PM PM PM PM PM PM PM PM PM PM PM PM

Rubber

plantation

PM PM PM PM P P P P PM PM PM PM

P- Production, M - Marketing, PM – production and marketing Source: field survey

It is observed that agriculture activity is done throughout the year. The intensity of engagement and

area under coverage is higher during the kharif season as many small and marginal don’t have

irrigation facilities.

Paddy is grown twice a year. The first season is January to May which requires irrigation facility and

the second season is July to November which is monsoon dependent. It was observed that majority of

farmers takes only one crop during the monsoon season and few farmers having irrigation facility

takes two to three crops a year.

Vegetables are grown during the summer and winter season. Production period for vegetables last for

three to four months.

Arecanut and jackfruit is mainly grown as a homestead crop. Though the gestation period for

arecanut, jackfruit, and rubber plantation is several years from 4 to 6 years but once the tree matures

it gives production every year for several years. Project can promote long gestation crops as

supplementary source of income but provides regular incomes for several years.


MART, Noida 25

3.3.1.4 Farming practices

The following section captures farming practices in terms of inputs sourcing, agriculture practices and

technology used, market access, access to finance and government services. It has been observed that

farmer practices depends of several factors such as entrepreneurial attitude, size of land holding, plain or

sloppy land, availability of irrigation facility, access to government schemes, adoption of technology and

package of practices, and linkage with market players. It has been observed that even a landless villager

with entrepreneurial attitude takes land on lease basis, grow cash crops by adopting better practices and

earn higher income compared to a small farmer who owns land but grow paddy mainly for own

consumption.

Story of Kanulal Das, a typical landless farmer in Tripura

Kanulal Das is 45 year old, 7th standard pass and belongs to BPL family. His wife is 35 year old and is also 7 th standard pass. He has two children; elder one is a 15 year old daughter and she studies in 9th standard and son is 14 year old and studies in 8th standard.

Livelihood profile

Kanulal is landless but has been doing agriculture for past 10 years during September to January every year. He takes 1 kani (0.4 acre) of land on lease every year from a local farmer and grows vegetables such as cucumber, radish, green chili and potato on rotation basis which have good local demand. He uses power tiller on hire basis for land preparation as it saves time and labour. Five years back he participated in 3-day training programme by agriculture department at Bishalgarh sub-division and found that the practices suggested there didn’t give him desired yield. Therefore, over the years he has made certain modifications in the package of practices. Though he didn’t feel the training useful but unlike farmers who have not received any training he remembers hands on various inputs by their names and quantity to be applied in the field! He does all agriculture operations by himself with family support and doesn’t hire labours. Except seeds, which he procures from Agartala wholesale market to ensure its genuine, he procures other inputs locally. In case of a pest attack he prefers to take advice from a local retailer from whom he purchases pesticide. It was observed that he was aware of new potato variety promoted by horticulture department that requires 50% less input cost and gives higher productivity. Vegetable provides him nutritional requirement for six month as he keeps a small portion for self consumption and sells the remaining quantity in the market. He sells vegetables to wholesalers at Agratala, which is around 35 km away and uses an auto to take the produce there. Last year he earned a net income of Rs 35000 of which he shared 50% with the land owner.

Activity Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Vegetables

Radish P HM

Chili P P HM

Cucumber P P HM

Potato P P HM

NREGS labour 100 days

Fishing labour 30 Days

P stands for production, HM for harvesting and marketing

Last year he worked for 100 days under NREGS and earned Rs 10000 income. He also gets yearly employment for 30 days

with the village from village fish farmers who hire his services for pond operations, catching fishing and selling at wholesale

market for which he earns Rs 100 per day. For selling fish at Agartala wholesale market he earns Rs 20 per visit and food

expenses. His total income from all sources is roughly Rs 30000 per year.

Family expenses

His yearly household expenditure comes to Rs 21000. His monthly requirement for rice is 50kg per month. He gets 35kg of rice

from government store and procures remaining quantity from the open market retailers. His involvement in multiple activities

ensures that he meets family expenditure and even saves a small amount for unforeseen urgencies.


MART, Noida 26

3.3.1.4.1 Input sourcing

Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools

from nearby towns. Seeds and fertilizers are available from government department however regular

supply of fertilizer is a major constraint which shoots up its market price. Other inputs are available from

open markets as well. Farmers don’t stock inputs and purchase them on as-and-when-required basis,

mostly in cash. Short supplies of chemical fertilizers coupled with individual purchases of small quantities

make farmers to spend two to three times of the actual price. For example, the actual price for 1kg of urea

is around Rs 5.50 but farmers pay Rs 6 to Rs 10 per kg. Farmers also receive inputs on credits and repay

the amount after the harvest. In such cases retailers charge higher rates for inputs. Purchasing of inputs

collectively by building partnerships with wholesalers well before the production season can help farmers

access inputs at lower rates.

3.3.1.4.2 Agriculture practices and technology used

Majority of farmers use home grown seeds but use of certified and hybrid seed has picked in last few

years. Power tiller, because of its affordability, has picked up in villages for land preparation as it saves

labour cost and time. A number of entrepreneurs have come up in villages that own power tillers and

provide the facility to farmers at Rs 150 per hour. There are variations in the package of practices followed

by farmers resulting in variations in investment cost, productivity and profitability (refer table below) due

to low adoption of practices promoted by government department resulting from limited extension

services in villages. Farmers consult local retailers in case of a pest attack. The one-time training inputs

are not sufficient to change the old practices of farmers which is the main reason for low productivity for

all major crops. For example, paddy yield varies from 5 quintal to 11 quintal per kani (0.4 acre), for chili it

varies from 2 quintal to 4 quintal per kani and similarly for potato it varies from 16 quintal to 35 quintal

per kani. Even within the village there exists such large variation in productivities. Except cleaning, there

is hardly any value addition such as sorting and grading, proper drying and processing done by farmers.

Some entrepreneurs run processing units for rice preparation and oil expeller in some villages and earn

higher income compared to farmers who sell raw produce. For example, 0.4 acre (1 kani) of land gives 750

kg paddy that after processing gives 450 kg of rice and is sold at Rs 18-20 per kg where as paddy is sold at

Rs 800 to 1000 per quintal. Similarly, one tree of areca-nut roughly gives 300 nuts (raw) and sold for Rs

120 to Rs 130. After drying 300 nuts becomes roughly 2 kg and is sold at twice the amount at Rs 250.

Continue ……

Issues and concerns

Kanulal achieves low productivity due to improper package of practices adopted, higher input costs, lack of awareness on

latest appropriate technologies, higher marketing overheads due to individual procurement of inputs and selling of produce.

Any uncertainly on government support to NREGS and fish promotion in the state will have an adverse impact on his family

income. Kanulal can benefit by tying up with other fellow farmers for procuring inputs to optimize costs and selling collectively

to gain higher incomes. Capacity building support and exposure visits to successful farmers in the local area can help him

adopt better package of practices.


MART, Noida 27

Table 7: Practices adopted by farmers

Farmer practices Farmer 1 Farmer 2 Farmer 3

Location West District West District North District

Household members 8 6 4

Total landholding 0.6 acre 2.8 acre 0.6 acre

Land ownership Leased Self Self

Land used for potato

cultivation

0.4 acre 0.4 acre 0.4 acre

Engagement in activity November –January November –January November –January

Daily involvement 2 hours 2 hours 2 hours

Sourcing of seed Private Agriculture office Agriculture office

Use of organic manure No Yes Yes

Application of chemical

fertilizers

Yes Yes Yes

Inputs cost (Rs) 18190 14970 21750

Production (Kg) 3200 2400 3500

Selling to Sub division

wholesaler

Sub division

wholesaler

Consumer

(Weekly haat)

Price received (Rs) 12 8 10

Net income 19490 4230 13250

Profitability 103% 28% 61%


Farmers who track market prices and sell directly to wholesale markets and consumers in haats get higher

prices compared to farmers who sell immediately after the harvest. Training on improved farming

practices through series of exposures, interactions with best practitioners and use of certified seeds can

help crop productivities. A simple value additions in terms of proper drying, sorting and grading can help

farmers realize higher incomes.

3.3.1.4.3 Access to finance

Money lenders are the traditional source of financer to rural community and they charge 5-10% per

month. Micro finance agencies such as RGVN, Bandhan and Basix operate in the state and provide loan

facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation

activities. Bandhan was found to be operating in rural area. The effective rate of interest to farmers comes

to 30% per annum though the flat rate is just 10-15%. Villagers repay the loan on weekly basis. SHGs

promoted by DRDA also extend loan to its members for both consumption and business purposes

however these are small loans that don’t meet business needs of the economic activity. DRDA extends

SGSY schemes to poor to start various income generating activities that includes bank loan and subsidy

component. In absence of proper handholding and marketing support SHGs find it difficult to manage the

activity successfully and therefore find difficulties in timely repayment of bank loan.


MART, Noida 28

3.3.1.4.4. Market access

The table 8 below captures marketable surplus available after consumption fo major crops grown locally.

Table 8: Marketable surplus for major crops

Major crops Volume consumed in village (%) Marketable surplus quantity per

village (%)

Paddy 74 26

Arecanut 44 56

Pulses 39 61

Potato 20 80

Fruits 18 82

Vegetables 4 96

Tea plantation 3 97

Pineapple 1 99



Except paddy, other major crops are sold by the farmers. Paddy is grown mainly for self consumption

purpose however small and marginal farmers also sell small quantities immediately after the harvest for

cash requirement and are compelled to purchase it back from open market to meet family requirement. A

small percentage of vegetables, fruits, pulses and areca-nut is consumed in villages and excess marketable

quantity is sold. The state is a net importer for pulses, vegetables, potato and paddy. The excess

marketable quantity of rubber, tea and pineapple goes outside the state while other products are

consumed within the state only.

Table 9: selling system of major crops

Major crops Selling system (% of produce) Sale price

Within village Traders Haat (Rs per quintal)

Paddy 4 80 15 800-1000

Arecanut - 20 80 6000-9000

Pulses - 100 - 3000-5000

Potato 5 95 - 700-1300

Fruits - 100 - 2000-3000

Vegetables 3 82 15 1000-3000

Pineapple 2 98 - 3-5 per piece

Rubber plantation - 100 - 14000-16000


Farmers sell the agriculture produce to traders within village, nearby block or sub divisions markets and

at Agartala wholesale markets. Farmers also the produce directly to consumers in local haats (weekly

markets) and villagers. The price of agriculture produce varies on daily basis and depends on supply and

demand pattern. The above table shows wide variations in prices received by farmers and it depends on

timing and place of sale. The prices are generally low immediately after the harvest. Creation of proper

storage facilities in villages and understanding of demand pattern can help farmers realize better prices.


MART, Noida 29

3.3.2 Livestock based livelihoods

3.3.2.1 Major livestock

The table 10 below illustrates major livestock activities pursued by villagers and percentage of households

engaged in them.

Table 10: Major livestock activities

Livestock Availability in



involved

Fishery 100 12

Poultry 100 22

Cow rearing 90 18

Goatery 70 25

Piggery 30 3


It is found that livestock rearing is done in all villages in the state. Piggery, poultry and goatery are

done as subsidiary activity on a small scale only.

Fishery is being promoted in all villages with government support. It is being done on individual basis

as well as on group basis promoted by the DRDA under SGSY scheme. Similarly backyard poultry is

done in all villages where farmer keeps upto 10 birds. Some progressive farmers in most villages have

started broiler units as well and they rear 400 to 500 birds.

Cow rearing is also done in almost all villages and villagers keep 1-2 local cows only. Similarly goat

rearing is also done in majority of villages and some families are engaged exclusively in goat trading.

Piggery is done in few villages and is popular among tribal community.

3.3.2.2 Seasonality

The table 11 below captures the seasonality of major livestock activities pursued in villages in terms of

production and marketing season.

Table 11: Seasonality of major livestock activities

Livestock Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb

Fish culture P P P P P P P P P P P P

M M M M M M M M M M M M

Rising poultry demand in the state

The state meat market is 50% broiler, 30% pork, 8% goat and remaining for others. Broiler has picked in last decade in the

state as it is cheaper alternate to local poultry birds, goat and pork. There are nearly 2500 broiler units in the state. Each unit

keep 500-20000 birds and a total of 8 lacs birds are produced every year. Live weight of 1.5 to 1.7 kg after dressing is achieved

in 30-35 days of production cycle. 30% wastage is there after dressing. Market rate is Rs 140 per kg in Agartala and it would be

Rs 125 to Rs 130 per kg in Kailashar. There is one broiler association in the state that regulates the price of bird. In Agartala,

50% supply comes from the West district and the other 50% supply come from the remaining three districts.


MART, Noida 30

Piggery P P P P P P P P P P P P


Goatery P P P P P P P P P P P P


Poultry P P P P P P P P P P P P


Cow rearing P P P P P P P P P P P P


P- Production, M – Marketing Source: field survey

All livestock are reared throughout the year. Marketing is also done throughout the year. All livestock

activities can be started in any season during the year.

Fish culture is mainly rainfed as 40% water bodies in the state are non-perennial. There are two types

of water bodies- open water bodies include river, lake where fishery department leaves fingerlings

that help poor in fishing activity; and other category include tank and pond that is used for fish

culture. As per fishery department presently the state has 157688 water bodies for pisciculture with

total area of 20521.07 ha and offers scope for its promotion in the state.

The broiler unit has a production cycle of 35 days. A cow gives milk for 6-7 months only in a year and

therefore a minimum of two cows can be promoted per family to provide regular income.

3.3.2.3 Livestock practices

The following section captures farmer practices in terms inputs sourcing, livestock practices and

technology used, market access, access to finance and access to government services. It has been observed

that livestock practices depends of several factors such as entrepreneurial attitude, availability of land,

availability of fodder, government support, adoption of better animal rearing and management practices,

and linkage with market players.

3.3.2.3.1 Input sourcing

Except for fish culture, inputs for other livestock mainly fodder is available within the village itself as

byproduct of agriculture produce and wastages from the households. Fish farmers procure fingerlings

from local markets and government hatcheries. Inputs such as mustard oil cake, quick lime and fertilizers

are available from open market and government stores. Inputs costs are high in the state compared of

other parts of India and these inputs come from outside the state and include high transportation cost.

Inputs are sometimes available on credit without interest and farmers repay it after the harvesting.

3.3.2.3.2. Production practices and technology used

Most families keep local varieties of livestock and follow traditional rearing methods and these are mainly

supplementary source of income to the family. There is low adoption of standard package of practices

suggested by the government department due to limited extension services. Some progressive farmers has

started rearing improved varieties of livestock such as Jersey cow, broiler units, and cross bred pigs that

motivates fellow farmers . Fish farmers have learnt latest practices at model fish farms promoted by the


MART, Noida 31

fishery department. Livestock rearing is less intensive activity and is managed by the farmer itself.

Whereas male members are engaged in procurement of inputs, production and marketing, women and

sometimes grown up children are involved in production activity. Fish farmers employ local villagers to

manage pond operations and pay them Rs 100 to Rs 150 per day. Since inputs costs are high so farmers

use local substitutes. Progressive farmers use latest technologies and become role models for others in the

village. The overall livestock productivity is low and even among the same activity farmers there is huge

difference in productivity levels (refer the table below for fish farmers). For example, local cow on an

average gives 2-3 litres per day whereas in the same environment Jersey cow was found giving 8 liters

milk per day.

Table 12: farmer’s practices for fish culture

Fish culture practices Farmer 1 Farmer 2 Farmer 3

Location West District North District North District


Total landholding 2 acre - 3.2 acre

Land ownership Self SHG Self

Land used for fish culture 0.4 acre 2.6 acre 0.4 acre


Sourcing of seed Govt./Private Own Private


Selling to Wholesaler Wholesaler Wholesaler


Inputs cost (Rs) 18190 14970 21750

Net income (Rs) 19490 4230 13250



3.3.2.3.3 Access to finance

As shared in the previous agriculture section villagers depend upon local money lenders for starting or

expanding livestock activities. Micro finance agencies such as RGVN, Bandhan and Basix operate in the

state and provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for various income

generation activities including livestock activities. SHGs also extend loan to its members for livestock

activities. DRDA extends SGSY scheme to poor to start various income generating activities that includes

both bank loan and subsidy component.

3.3.2.3.4 Market access

The table 13 below illustrates the marketable surplus for major livestock activities pursued by villagers.

Table 13: marketable surplus in livestock activities

Livestock Volume consumed in village (%) Marketable surplus in village

(%)

Cow milk 85 15


MART, Noida 32

Poultry 19 81

Fish 12 88

Goat 10 90

Pig 5 95


Except milk, other livestock are sold by the farmers. Milk is produced mainly for self consumption

purpose and is consumed within the village itself. Other livestock are reared mainly for selling purpose

and only small quantities are consumed within the village itself. The state is a net importer for fish and

milk.

Table 14: Selling system for livestock activities

Livestock Selling system (% of produce) Sale price

Within village Trader Haat (Rs per kg)

Fish - 96 4 70-160

Pig 4 72 24 125-135

Goat 10 70 20 180-220

Poultry 1 95 4 110-150

Cow milk 100 - - 20-28 per litre


Table 14 above shows that farmers sell fish in weekly markets and nearby block and sub division markets.

Due to high demand of fish the entire catch is normally sold in weekly haats and nearby daily markets

within the block area. Big farmers also sell in nearby wholesale markets at sub divisions through

commission agents and pay 6-7% commission. All transactions are done in cash. Piggery, poultry birds

and goatery is sold to traders and also in local haats. Milk production is low in villages and the entire

quantity is sold within the village itself. There is a good scope of improving cattle productivity by

extending proper extension services.

The prices of various livestock commodities varies hugely and depend upon villagers’ understanding of

supply and demand pattern, timing of sale, place of sale, sale directly to consumers or through channel

partners. For example, fish price is observed from Rs 70 to Rs 160 per kg that depends on variety and size

of fish, local fish or fish coming from outside the state. Similarly, for milk which is sold within the village

itself the variation was little less and ranged from Rs 20 to Rs 28 per litre. In case of broiler birds the

association located at Agartala regulates the bird prices in the state.

Organizing poor for collective sourcing of inputs and marketing, adoption of better animal management

and rearing practices, marketing information, and field based handholding support can help poor

villagers realize higher returns from livestock activities.

3.3.3 Non-farm based livelihoods

The table 15 illustrates major non farm activities pursued by villagers, percentage of households involved,

their place of work and whether the skill is traditional or acquired.


MART, Noida 33

Table 15: Major non farm activities pursued by villagers

Non-farm

activities

Availability in

percentage of

villages

Percentage of

households

involved

Place of work Traditional/

acquired skill

Stitching 100 27 Within Village Acquired

Laborer 100 19 Village/Outside Acquired

Electrician 100 1.2 Within Village Acquired

Insurance agent 100 2.7 Village/Outside Acquired

Driver 100 5 Within Village Acquired

Government service 90 6.4 Outside village Acquired

School teacher 90 1.3 Outside village Acquired

Incense stick

making

70 16 Within Village Traditional

Army 60 0.6 Outside village Acquired

Private service 60 3.0 Outside village Acquired

Hotel jobs 60 0.5 Outside village Acquired

Knitting 40 8 Within Village Traditional

Police 40 0.4 Outside Acquired

Plumber 40 0.1 Within Village Acquired

Weaving 30 8 Within Village Traditional

Embroidery 30 5 Within Village Acquired

Carpenter 20 0.5 Village/Outside Traditional

Food processing 10 0.1 Within Village Acquired


Rural community is engaged in number of non-farm activities in villages. Labours, electricians,

insurance agents, drivers and tailors are present in all villages. A large number of women have been

trained in stitching activity but most of them do it for their own family requirement and occasionally

get work from fellow villagers.

In terms of involvement of households predominant activities include stitching, agriculture labour

and incense sticking making. Villagers shared that incense sticking making has come down over a

period due to difficulties in getting bamboos.

Women are mainly involved in stitching, knitting and weaving activity on a small scale and mainly

serve family requirement and on request serve other families on payment basis.

Most of the non-farm activities require acquiring new skills. Most of the skills for non-farm activities

have been acquired first by working as an apprentice and then indulging in learning by doing

approach. The journey to becoming a skilled person involves long years. DRDA under SGSY schemes

has imparted skills for stitching, food processing, and incense stick making and weaving.

Regular jobs in government sector and private sector make villagers migrate to town, cities and

outside the state and become an important source of income to villagers through remittances.


MART, Noida 34

Villagers have voiced demand for skill training to tap emerging local opportunities in the areas of

electrical repair, automobile repair, mobile repair, cobbler, drivers etc. to enhance their income.

Emerging sectors such as banking, health and hospitality, banking and insurance will offer low skilled

opportunities which poor youth can tap by undergoing skill based training.

3.4 SHGs and livelihoods

SGSY was started in 1999 to enhance employment among the poor. The SHGs are organized by

swarojgaris from the BPL list approved by gram sabha. Till 2008-09, there were 27010 SHGs in the state.

West district had highest number of SHGs in the state at 11131 and North district had 4506 SHGs. On an

average an SHG has 10-20 members. SHG meet once every month and some even twice a month. One

group saves Rs 30 to Rs 50 per month per member. Group savings are used for inter-loaning. SHGs

discuss issues related society, involvement of members, group unity, livelihoods and marketing

challenges.

Both financial and non-financial supports are provided to SHGs. DRDA provides basic training to SHGs

on accounts management, conducting group meeting, writing of proceedings, and maintenance of records

through block support. Line department resource persons provide skill development training that has

marketing component as well. External resource persons and experts are also hired to impart training on

need based topics. SIPARD a state level training institution provides training on all topics related to rural

development. SHGs are engaged in fish culture, piggery, goatery, cow rearing, handicraft, poultry and

agriculture, duckery, rubber plantation, tent house, incense stick making, betel vine. As per information

shared by SHG members that their monthly income ranges from Rs 2500 to 3500 per month per member.

The issues faced by them in successfully managing the livelihood activities include high inputs costs, low

productivity, low volumes, limited holding capacity of agriculture produce, low adoption of package of

practices, and marketing information and linkages. These issues can be tackled by providing proper

extension services to them and marketing handholding support. This would require that facilitating

Case study of Baba Saheb SHG, West District

Baba Saheb women SHG was formed in August 2006 in Ishan Chandra Nagar village. There are 12 members in the WSHG.

Each member saves Rs.30 per month. Under SGSY scheme group got Rs.1 lac after 1st gradation in 2008 as 100% grant.

After 2nd gradation in 2010 it got another Rs.2.5 lac as bank loan. Group started piggery activity as supplementary source of

income with this financial support. Group got technical training by veterinary department for managing the activity. The cost

of one piglet is Rs.800-1200. Feed is available in the local market and cost Rs.200-300/piglet/month. Immunization is done 2

times a year. Pig rearers follow stall feeding practices. Pig rearing is a less intensive activity and group member spends only

one hour every day. Disease is the common problem faced by group members and one time training received by them didn’t

result into proper adoption of package of practices. Every time the animal husbandry doctor visits he charges fee that

discourage members to immediately call the doctor in case of disease problem that results into fatal cases. Also, pigs have

not been insured by SHGs and exposing them to higher disease risks. Last year seven piglets died of disease that

discouraged them to repay the loan component regularly. Pigs are sold locally as marketing is not a problem due to huge

local demand. Group members sell to local traders who visit village regularly to procure pigs. After two years selling price of

a grown up pig is around Rs 20000. The group would require training on animal management practices, vision building,

record keeping, activity economics, insurance cover, and exposure visits to successful entrepreneurs in the local area to

manage the activity in a sustainable manner.


MART, Noida 35

agencies such as DRDA needs to appoint sufficient number of staff with proper marketing experience and

managing livelihoods on large scale. The managerial capacity to mobilize linkages with various line

departments and resource agencies and extending services in villages is important to sustain their

livelihoods.

As per NABARD document, in 2009-10 7997 SHGs were cumulatively financed by 6 banks through 263

bank branches and disbursed Rs 4102.07 lacs with support of 11 SHPIs. However, farmers expressed that

credit facility though available is not adequate as compared to actual requirement. Tenant farmers and

farmers with title of the land in deceased father or forefathers names do not get KCC to avail bank loan for

cultivation. One of the major constraints in up-scaling SHG-Bank linkage programme in Tripura was lack

of awareness on basic concepts of SHGs and high influence of subsidy oriented SGSY. With an objective of

ensuring greater financial inclusion and increasing the outreach of the banking sector, the RBI has

permitted banks to use the services of NGOs/SHGs, MFIs and other civil society organizations as

intermediaries in providing financial and banking services through the use of Business Facilitators (BF)

and Business Correspondents (BC) models. NABARD has sanctioned a pilot project on utilizing Farmers

Clubs as Business Facilitator to Tripura Gramin Bank in July 2009. Micro finance is a necessary but not

the sufficient condition to promote micro enterprises among the poor. Poor needs a range of business

development services through field based handholding support in terms of linkages with raw material

providers, technical and marketing skills such as costing and pricing, negotiation and market exposure,

and vision building.


MART, Noida 36

Chapter 4: Value Chain Analysis

4.1 Introduction

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.

Activity selection for value chain analysis

Following figure 3 captures the flow of key steps performed to select the five potential products for

conducting value chain analysis;

Figure 3: Key steps involved in selection of value chain activities

Task performed Key Steps Shortlisted products/commodities

Review of regional implementation plan provided by the World Bank

Study secondary reports and website

Step 1 Literature review

Incense stick making, bamboo shoot production, floriculture, piggery, fishery, puffed rice preparation, poultry, rubber plantation, milk production, handicrafts, vocational training in service sector, agri processing units

Village visits in both districts and market survey

Meeting with resource agencies, line department officers at state and district level

Review of secondary reports

Step 2

Field visit and meeting with

resource agencies in Tripura

Fish culture, potato cultivation, pulse cultivation, vegetable cultivation, pineapple cultivation, piggery, areca-nut, goatery, rubber plantation and cow rearing

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 staff

Fish culture,

Potato cultivation,

Pulse cultivation,

Vegetable cultivation,

Pineapple cultivation

Chapter 3 captured community’s engagement in long list of livelihoods across agriculture, livestock and

non-farm sectors. 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. potato, vegetables, fish,

pineapple and pulses for carrying out value chain analysis. All the five shortlisted produce are suitable for


MART, Noida 37

both project districts. Activities such as rubber plantation and areca-nut have not been considered as it

involves long gestation period and can be promoted as supplementary source of incomes. Project can also

promote piggery, areca nut cultivation, rubber plantation, dairy and goatery among the poor in both

project districts.

Field experience shows that there is very little value-addition taking place at the producer level in villages

leading to a large chunk of produce moving out of the village in the raw form. Value addition is generally

taken up by players with high capital base located at higher order markets. However, simple aggregation

at village level with rudimentary value addition activities like cleaning, sorting, grading, drying etc. can

fetch higher price to the poor rural community.

4.2 Summary of suggested interventions

The table 16 below illustrates summary of suggested interventions in terms of size of activity suggested,

convergence and partnership potential and key support to be provided by the project to implement value

chains.

Table 16: Summary of suggested interventions for value chain activities.

Intervention Size of activity suggested Convergence and partnership

Key support to be provided by the Project

Produce / Product

Suggested Unit of activity

Capital requirement (Rs)

RoI (%)

potential

Potato Potato cultivation using TPS and improved practices in both project districts Other option is potato cultivation using kufri jyoti and kufri chandramukhi seed variety

0.4 acre 15815 115 Wholesalers and retailers Weekly markets Inputs suppliers Progressive farmers Financial institutions Horticulture department Marketing agency

Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building on improved package of practices, Finance linkage Market exposure Market linkages Handholding support

Vegetable Cultivation

Chili cultivation in both project districts

0.4 acre 12050 103 Wholesalers and retailers Weekly markets

Organise poor in SHGs, federation and producer group


MART, Noida 38



Produce / Product



RoI (%)

potential

Other options are cabbage, cauliflower, tomato and radish cultivation

Inputs suppliers Progressive farmers Financial institutions Horticulture department Marketing agency

Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support

Fish Composite fish culture in both project districts Other options are fish culture with multi-stocking, pig cum pisciculture, poly culture of prawn and duck cum pisciculture using multi stocking

0.4 acre 62326 41 Wholesalers and retailers Weekly markets Inputs suppliers Progressive farmers Financial institutions Fishery department Marketing agency

Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support

Pineapple Pineapple cultivation using improved package of practices in

0.4 acre 42396 147 Wholesalers and retailers Weekly markets Inputs suppliers

Organise poor in SHGs, federation and producer group Introduce


MART, Noida 39



Produce / Product



RoI (%)

potential

both project districts Other option is juice making

NERAMAC, private processing units Progressive farmers Financial institutions Horticulture department Marketing agency

collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support

Pulses Black gram using improved package of practices in both project districts Other options are moong, lentil and pea cultivation

0.4 acre 6195 151 Wholesalers and retailers Weekly markets Inputs suppliers Financial institutions Progressive farmers Agriculture department Marketing agency

Organise poor in SHGs, federation and producer group Introduce collective action for input sourcing and output marketing Capacity building for improved package of practices Finance linkage Market linkages Market exposure Handholding support


MART, Noida 40

4.3 Potato cultivation value chain

4.3.1 Background

Highly popular worldwide, potato is a versatile,

carbohydrate-rich food prepared and served in a variety

of ways. Freshly harvested potato contains about 80%

water and 20 percent dry matter. About 60 to 80 % of

the dry matter is starch. On a dry weight basis, the

protein content of potato is similar to that of cereals and

is very high in comparison with other roots and tubers.

In addition, potato is low in fat, rich in several

micronutrients, especially vitamin C. If eaten with its

skin, a single medium sized potato of 150 g provides

nearly half the daily adult requirement (100 mg) of

vitamin C. Potato is also a moderate source of iron, and

its high vitamin C content promotes iron absorption. It

is a good source of vitamins B1, B3 and B6 and minerals such as potassium, phosphorus and magnesium,

and contains folate, pantothenic acid and riboflavin. Potatoes also contain dietary antioxidants, which

may play a part in preventing diseases related to ageing, and dietary fibre, which benefits health. In terms

of total production of energy for human consumption, potato is one of the five major crops in the world,

others being wheat, rice, maize and barley. On an average, potato yields two times more calories per unit

area than any other cereal. (Source: www.potato2008.org)

Global potato production for the year 2005 was around 322 million MT, of which China dominated the

World by contributing around 23% followed by Russian federation, India (8%), USA and Germany. Potato

chips contribute around 85% to Indian snack food industry, one of the largest snack markets in the world

and growing at the rate of 10%. India just exports around 0.5% of the total worlds export figuring around

7200 tons of potatoes to countries like Sri Lanka, Nepal, Mauritius, Singapore, UAE and Japan as most

production is consumed in the country itself. Market influencing factors include fluctuations in the

production levels in the country, fluctuations in the weather conditions, prices of competitive vegetables,

demand level from the various areas of the country, development stages of the crop, transportation

charges, hoarding and black-marketing.

As per horticulture department the vegetable cultivation has increased by about 62% in the last 7 years.

One of the reasons for this is the decline in average landholding per farmer by over 50%; from 1.25

hectare in 1976-77 to 0.6 hectare in 1995-96 (economic review 2006-07 and 2008-09, Tripura). Due to

fragmentation of landholding, farmers have shifted to horticulture crops. Potato is one such crop that is

associated with agricultural diversification in last few years. The productivity of area under potato

cultivation has marginally improved in the last few years due to prevalence of peasant and tribal mode of

cultivation in the rural area.

http://www.potato2008.org/


MART, Noida 41

As per economic review 2008-09 of Tripura the total area of 5780 hectare under potato cultivation

produced 0.87 lakh MT potato – a productivity of 15.07 MT/hectare. Though it is well below the national

average of 18.8 MT per hectare, the availability is far below the demand in the state. Tripura imports

potato from West Bengal. The introduction of new TPS (True Potato Seed) variety and improved package

of practices are expected to replace the dependence on conventional seed-potato procured from outside

the states besides generating income for potato farmers of Tripura.

There is lack of proper cold storage facility in the state that compels famers to sell horticulture produce

immediately after the harvest at throw away prices resulting from glut in the market. Cold storage helps

farmers get better prices during off seasons and income throughout the year. There are 4 cold stores

under agriculture department in Tripura i.e. 500 MT potato cold storage at Teliamura, 2000 MT potato

cold store at Baikhora and 2000 MT potato cold store at Kumarghat and 3500 MT multi chambered cold

store at Melaghar. These stores are meant to store horticulture crops, but mainly store potato. Realizing

the gap in storage facility, Government has proposed to construct 1000 MT capacity multi chambered cold

storage at Satchand (South District).

4.3.2 Feasibility of Potato cultivation

Technical feasibility

The agro-climatic conditions are suitable for potato cultivation in the state. A wide range of potato

varieties such as True Potato Seed (TPS), Kufri Jyoti and Kufri Chandramukhi can be produced in the

state.

Farmers in the state have the basic skills for potato cultivation

There are 7-8 cold stores with over 5000 MT capacity in the state to ensure better prices during off

season and income spread throughout the year.

Government support is available in terms inputs at subsidized rates, exposure and trainings and

extension services.

True Potato Seed that requires 50% less production cost and gives higher productivity is available in

the state.

Market feasibility

The demand for potato in the state is higher than the current production level. Therefore, a part of

this demand especially in Agartala and towns area is met from West Bengal.

There is well organized market structure in the state with two wholesale markets at Agartala

(Maharajganj and Batala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar,

Kailashahar, Udaipur, and also 474 village level primary markets in the state where farmers can sell

potatoes directly to local consumers.

As per market sources, the last few years have recorded about 10-15% per annum increase in potato

demand in Agartala wholesale market.

Economic feasibility

The cost of investment is Rs 15,815 per 0.4 acre (1 kani) which is affordable for a small farmer. The

overall income per unit is around Rs 18,111 with 115% return on investment.


MART, Noida 42

As per agriculture department TPS variety gives 25% higher productivity than other potato varieties.

4.3.3 Production clusters

Potato cultivation can be done throughout the state. It is mainly grown in plains than sloppy lands. As per

available government data there has been marginal increase in area under potato cultivation over last few

years; 5300 hectare in 2005-06 to 5780 hectares in 2008-09.

4.3.4 Major usage and byproducts

Potato is mainly consumed for making curries and snacks in daily food in the state.

4.3.5 Potato value chain

4.3.5.1 figure 4: Value chain Map for Potato

* The rates are given for potato coming from West Bengal.

Potatoes are sold in the state throughout the year. Three to four months of demand (February to

April) is met from local production and for the remaining period supply comes from West Bengal.

Wholesale markets Kolkata

Farmers (Within state)

Farmers (Outside state)

Wholesalers

(Agartala)

Retailers (Agartala)

Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers

(Agartala/Subdivision

Consumers (Local market)

Input Suppliers (Within state) Seeds, fertilisers, agriculture implements, equipment, pesticides/weedicides etc.

Rs 12-13/kg

14-15/kg

Rs 7-10/kg*

Villager level traders


MART, Noida 43

The state is a net importer of potato; around 70% (45 to 60 MT) of supplies per day at Agartala

wholesale markets come from West Bengal and the remaining 30% demand is met from local

production.

Majority of the local population consumes potato. Agartala with a population 1,89,327 as per 2001

census (3.7 lakh after municipal expansion in 2004) is a huge market for potato consumption and

depends on potato coming from both within the state and from West Bengal.

Producers get only 50% of the value paid by the consumers; The remaining is taken by various

channel partners.

There are 474 village level primary markets in the state where farmers sell local potatoes directly to

the consumers.

From wholesale market potato goes to two districts i.e. South Tripura and West Tripura. In the

remaining two districts of Dhalai and North, potatoes come from Dharmanager wholesale market

(North Tripura) and Silchar (Assam) wholesale market.

4.3.5.2 Stakeholders and their roles

4.3.5.2.1 Input suppliers

The main inputs required for potato cultivation are seeds, fertilizer, pesticides/weedicides, and agri

implements. The suppliers of these inputs are

located at block, sub division level and at Agartala

wholesale markets. All inputs are available in the

state and except TSP seeds, which are available

locally, all other inputs are procured by wholesalers

from other states. Agriculture department provides

TPS and other inputs at subsidized rates to farmers.

4.3.5.2.2 Farmers practices

4.3.5.2.2.1 Input sourcing

Farmers procure inputs from government stores and also from nearby open markets. Farmers face

problems in timely procurement of inputs from government stores and therefore they pay upto 1.5 to 2

times of market prices particularly for chemical fertilizers. Farmers pay 50% upfront and 50% on credit

and repay it after the harvest. Famers procure TPS seeds from local government offices. Farmers have

reported that quality of seeds available from open markets is sometimes not good so they prefer to buy it

from government sources or from big wholesalers in Agartala and sub divisions. Irrigation is done two

times from river or ponds. Farmers either use their own pump sets or hire it. Big farmers have installed

electric run mechanism for lift irrigation and they pay nominal amount towards annual electricity

charges.

What is True Potato Seed (T.P.S.)

Tripura potato implies tiny botanical seeds of potato.

Potato, which is known as True Potato Seed, is obtained

by the hybridization of two parental lines of potato. It is a

substitute of the traditional tubers.


MART, Noida 44

4.3.5.2.2.2 Production practices and technology used

Potato is grown in plains and therefore its cultivation is not undertaken in areas of undulating land.

Potato cultivation is done in 0.2 acre to o.4 acre of land from November to January. There is an increasing

trend towards using power tiller for land preparation that is normally used two times as it saves time and

is affordable. Small farmers also use bullocks for ploughing purpose.

Farmers practice lifts irrigation. Irrigation is required twice – at the time of land preparation and during

the production phase. Farmers use hybrid TPS and certified potato seeds available in the market. Some

farmers directly sow seeds and some prepare seed bed and transplant the seedlings. Every farmer follows

line sowing and maintains distance between lines and between two plants. Generally True Potato Seeds

(TPS) are used by farmers which are available from Government stores. TPS can be grown three times a

year. Farmers from their first and second harvest store some potatoes in cold storage for use in next

season as seeds. Sowing time is November and December and the harvesting period is January and

February. Other varieties grown include Chandramukhi and Joyti grown in West Bengal. Some farmers

even follow inter culture and grow sweet gourd and pumpkin in the land left between two lines. Potato

farmers use both chemical fertilizers and organic fertilizers (cow dung and mustard oil cake as organic

manure) at the time of land preparation. Some farmers use bio-fertilizers. Urea is used in split doses once

at the time of land preparation and next after the vegetative growth of the plant.

The adoption of scientific practices is low among small and marginal farmers which results in lower

yields. For example, against the government recommended dose of 9.60 kg of phosphate in 0.4 acre of

land, potato farmers use almost four times (35.48 kg) resulting in higher input costs as they believe that

Package of practices for production of Potato using T.P.S. (source: Agriculture department)

Raising Seedling: Seeds are sown at 0.5 cm depth in raised nursery beds (6 inches or 15 cm) prepared to good tilt with finely powdered dry cowdung in rows at 10 cm apart under shade and it is watered. Apply foliar spray 0.01% Urea solution from 15th day after sowing on alternate days till the seedlings are ready for transplanting (25 to 28 days) with 3 to 4 leaf stage. Care should be taken against termite and damping-off.

Cultivation in the main field: Prepare the main field to a good tilt. After leveling apply fertilizers in 75:100:150 kg. NPK per hectare. Make ridges (6 inches or 15 cm. height) furrows at 50 to 60 cm. apart in east - west direction. Irrigate the furrows to 3 inches or 7.5 cm height. Transplant the seedlings on the next day on the northern side of ridges at half the height at 15cm apart. On 35th day apply 75 kg nitrogen per hectare after weeding and earthing up is done in such a way that the plants come up on top of the earth. Provide irrigation as and when required.

What is tuberlet? Small tubers upto 20 grams size used as seed tuber. Seed tuber requirement could be brought down to one-third by using tuberlets.

TPS tuberlet production practices: At present there are two methods in practice for producing seedling tubers in bed 1. Single Row Method 2. Double Row Method

Single Row Method: Prepare beds of 6 inches or 15 cm. height, 1 mt. width and according to convenient length" at 0.75 cm apart. Bring to good tilth mixing with finely powdered well-rotten dried cow dung. Apply Urea, S.P and M.O.P. @ 20 gms, 60 gm & 25 gm./ sq.mt. respectively as basal dose. Sow 2-3 seeds per hole at 0.5 cm. depth with 20 cm. X 5 cm. spacing. Provide shade to avoid scorching sun and irrigate the beds with fine rose cane as per necessity. Earth up with the mixture of finely prepared soil and cow dung along with urea @ 5 gms./sq. mt. at 30th , 45th and 60th day. Cut the haulms on 85th day. During the Whole production period, need base spraying with P.P.C. should be undertaken. Treat the Tuberlets with 3% Boric-acid and store in cold storage for next year after proper drying in shade.

Double Row Method: Preparation of field and other operation are the same. However, in Double Row method seeds are sown 4 cm. apart in a line and row to row distance is 10 cm. In between two double row distance is 30 cm. Top dressing with 5 gm urea per sq.mt. on 30th , 45th and 60th day followed by earthing up as practiced in normal crop so that two lines can be covered by a single furrow.


MART, Noida 45

phosphate is the most important nutrient for getting higher yield. Against a recommended yield of 25 MT

per hectare for TPS seed small and marginal farmers get 15 to 20 MT per hectare only. Farmers who

possess land near river side record higher productivity.

4.3.5.2.2.3 Market access

Farmers sell potatoes in local weekly haats, to local traders and wholesalers at Agartala and subdivision

markets. Poor farmers keep a small quantity as seed for the next season and don’t face any problem in

selling the remaining produce as markets are generally located within 20 km to villages. Big farmers store

produce in cold stores and sell it during the off season fetching higher prices. All transactions are done in

cash. However, credit is available for inputs which farmers repay after the harvest. The average price

received by farmers is Rs 800- 1000 per quintal.

4.3.5.2.3 Retailers

Retailers are located in villages, blocks, sub divisions and Agartala. At Durga Chowmuhani retail market

in Agartala there are 30 retailers registered with the local municipality. One time registration fee is Rs.

28,000 and per month charge (tauji) is Rs. 250. Retailers procure potatoes from the wholesale markets in

the morning hours from 6am to 7am and in the afternoon from 1pm to 4 pm. They sell potatoes from 7 am

to 12 noon and in the evening from 5pm to 9 pm. Transportation from wholesale market to retail market

in the town area is Rs 10 per bag of 50 kg. Retailer also pays Rs. 4 to Rs. 5 as labour charges per bag for

loading at wholesale market and Rs. 3 for unloading at retail market. Retailers generally sell in cash to

consumers but sometimes offer credit facility without any interest. One retailer brings 4-5 bags of 50 kg

each per day. Total sale of one retailer varies from 150 - 250 kg per day.

4.3.5.2.4 Wholesalers

There are two potato wholesale markets in Agartala: Maharajganj Bazar (Gole Bazar) and Batala

Super Market. Potato wholesalers also deal in onion business. There are 21 wholesalers at

Maharajganj market and 4 wholesalers at Bartala market.

A total of 45–60 MT quantity per day comes by truck from West Bengal and by local transport from

Guwahati. 70 to 80% quantity comes from Dhupguri (Dhupguri variety), 20% comes from Hoogly

(Kolkata Jyoti variety) and (1 to 2) % comes from Kolkata (Chandramukhi variety). It comes in

packages of 50 kg per bag.

Local potato production covers 30-35% of total demand of Tripura State for three to four months (i.e.

from February to April). Local potato in Agartala comes from sub division markets at Bikhora,

Julaibari (South Tripura) Melaghar, (Sonamura), Teliamura, Mohanpur, Bishalgarh (West Tripura).

Wholesalers stock local potato in cold storage at Agartala and villagers store potato in local cold

storages (i.e. at Bikhora and Melaghar) and sell it when demand is high in the market. Rate for cold

storage is Rs 100 to Rs 110 per quintal for one season of up to 6 months.

There are seven to eight cold storages in Tripura. Out of these seven stores three cold storages are

located at Agartala

Bhutaria Cold Storage (Private)


MART, Noida 46

Sherawali Cold Storage (Private)

Apex Cold Storage (Govt. undertaking)

4.3.5.2.5 Transporters

Transporters are located at the source points at various locations in Uttar Pradesh, West Bengal and

other states from where agriculture inputs come.

From Kolkata to Agartala for one truck (10 wheelers) of 15 MT, cost of transportation per quintal

comes to Rs. 560 and other operating expenses come to Rs. 40 per quintal. From Dhupguri to

Agartala the cost comes to Rs. 430 per quintal and other operating expenses are Rs 25 per quintal. It

means transportation cost comes to Rs 4 to Rs 6 per kg.

Wholesalers at Agartala directly contact wholesalers in West Bengal and bear transportation cost from

West Bengal to Agartala. Labour charge for loading potato at Kolkata is Rs 2.50 per bag. Within the

state local transport cost is borne by retailers.

Labour charges for unloading and loading of potato bags at Agartala come to Rs. 1.25 to Rs. 3.50 per

bag.

Farmers from local sub-divisions come to local haat and sell to local traders.

Local traders purchase potato from farm gate and weekly markets, package it and then supply to

wholesale markets. Trader’s packaging and transportation cost per quintal comes to Rs. 70.

4.3.5.2.6 Consumers

A majority of the population of the state consumes potato. Consumers generally purchase potatoes once

or twice in a week from nearby weekly markets and daily markets in towns. Consumers prefer Kufri and

True potato variety and purchasing is done in cash. Dhupguri variety is the cheapest among all varieties

and is sold most in Agartala. Price paid by consumers varies from Rs 14 to Rs 20 (refer the table)

depending upon potato variety, size, sorting and grading and also timing of purchase. In the morning

prices are high and it reduces as the day progresses. Price of potato varies over a period of time in the year

due to price fluctuation.

Table 17: Potato variety and market prices

Potato variety Farmer to wholesaler (Rs

per kg)*

Wholesaler to Retailer

(Rs per kg)

Retailer to consumer

(Rs per kg)

Dhupgari 6-8 12 14-15

Kolkata Jyoti 5-7 13 16

Chandramukhi 8-10 15-16 18-20

Source: field survey at wholesale and retail market in Agartala

* Based on information shared by wholesaler at Maharajganj wholesale market

4.3.5.2.7 Constraints-Solution Matrix

The table a8 below illustrates constraints faced by farmers for key livelihood factors and critical

intervention points to overcome constraints.


MART, Noida 47

Table 18: Constraints faced by farmers and intervention points.

Factor Constraints faced by small farmers Critical intervention points

Input sourcing Potato seeds from the government

department are not available on time

which forces farmers to procure them

from open market.

Availability of fertilizers

is low when the demand is high as a

result prices group by 50-200% in

peak demand times.

The state is fully

dependent on other states for supply

of fertilizers and pesticides. Traders

indulge in hoarding.

Farmers are not educated so they find

problem in reading the names of

pesticides so they go by the advice of

retailers who sometime offer

duplicate products as well.

Establish a formal arrangement with

the agriculture department for

ensuring timely supply of potato seeds

and fertilizers to farmers.

Organise farmers to procure inputs

collectively to negotiate better prices

and reduce overhead costs. Farmers

can procure inputs well in advance of

sowing season.

List out input suppliers at Agartala

and sub division markets and establish

tie ups with them for timey

procurement of inputs.

Production

practices and

technology

used

Land in some places is

not fully suitable for growing potato.

In some villages pump sets are not

available and farmers have to hire

them from other villagers @ Rs 80 per

hour.

Extension services from agriculture

department are not available on time.

Farmers don’t upgrade their skills and

knowledge regularly resulting in low

yields. For example, as against

prescribed yield of 25MT per hectare

for TPS farmers get 15-20MT per

hectare.

Promote potato cultivation after

suitable technical assessment of the

area with support of agriculture

department.

Establish linkage with local banks and

government schemes such as SGSY to

help famers in accessing loan for

purchasing pumpsets and other

improved equipments.

Create village level cadre of technical

persons to provide paid technical

services to farmers.

Regular training and exposure visits to

best practitioners in the local area can

help poor farmers.

Access to

support

services

provided by

government

and private

agencies

Inputs from the government


and the quality of inputs procured

from private players is doubtful.

Farmers who took one-time training

from agriculture department didn’t

get the desired yield. By hit and trials

approach they develop package of

practices.

Cold storages are very far and few.

The labour cost is high at Rs 150 per

Appoint implementing agencies and

develop village level service providers

to help famers link with need based

government schemes and private

services.

Develop village level cadres to help

extend technical services to farmers.

Set up new cold stores after feasibility

study.

Use of latest machines and tools such

as power tiller work faster and saves


MART, Noida 48

day due to availability of works under

NREGA at Rs 100 per day.

cost.

Access to

finance

Availability of timely and right

amount of credit is an issue. Bank

loan requires a lot of paper work and

farmers’ don’t have proper papers

against their land.

MFIs working in the area provide loan

but their loan products don’t match

expectations of farmers.

Organize poor famers in SHGs to link

them with local banks to ensure their

financial inclusion.

Develop partnership with financial

institutions and MFIs and encourage

them to develop loan product for

potato cultivation based on its

economics.

Market access Farmers sell individually to the

retailer/wholesaler resulting in higher

overhead marketing costs

Farmers get 50% of value paid by the

final consumers

There is scope for collectivizing

farmers to sell collectively and directly

to higher order markets at sub division

towns and Agartala for better price

realization.

Cooperation

among farmers

and

institutions

building

There is low affinity among farmers

for collective action for sourcing of

inputs and sale of potato resulting in

higher operating costs.

Guide farmers for collective sourcing

of inputs and marketing to reduce

operational costs.

Govt. policies

and external

ecosystem

Blockage of roads and civil unrest may

lead to increase in input costs and

market failure making potato

cultivation unviable.

Inclusion of poor tribal and

development of local market system

will reduce dependence on external

markets.

4.3.6 Project Intervention

Project can promote potato cultivation to be taken up by an individual family. Individual farmer will

do the production but sourcing of inputs and marketing can be done collectively.

Project need to work on strategies and capacity building inputs suggested in the previous section and

by adopting an implementation plan described later.

Project can facilitate funding to individual farmers on the basis of unit cost described below.

4.3.6.1 Economics of potato cultivation using TPS

Assumptions

Calculations have been done for 1 kani (0.4 acre or 0.16 hectare) of land for TPS potato cultivation

activity. Cost of various inputs and outputs are based on information collected from villagers, market

players and agriculture department. Agriculture department has provided cost of cultivation for

2009-10.

The rate of interest for bank loan is taken @ 1% per month. Bank loan is considered for three months.

The wholesale price of potato is taken as Rs 8/kg.


MART, Noida 49

Table 19: Economics for potato cultivation

Particular Unit Quantity Unit

Price(Rs)

Total

Amount(Rs)

Income

Sale of potato Quintal 4000 8 32,000

Cost

Tillage operations cost Lump sum 1 1600 1600

Irrigation Lump sum 1 560 560

Seed cost Kg 0.02 16000 320

Use of fertiliser 0

MOP Kg 38 6 228

Single Super Phosphate (SSP) Kg 100 6 600

Urea Kg 54 5.75 310.5

Farm Yard Manure (FYM) Kg 3200 0.33 1056

Plant protection measures Lump sum 1 100 100

Labour involvement Man days 30 100 3000

Marketing expenses

Commission to agent Commission 32000 0.07 2240

Transportation to nearby market Trip 1 1000 1000

Packaging and bagging Number 80 10 800

Miscellaneous Lump sum 1 1000 1000

Total running cost 12,814.5

Net Income 19185.5

Depreciation 600

Profit before interest 18,586

Interest (12%) 3% 15,815 474.4

Net profit 18111

ROI 114.52%

Payback period (year) 0.82

Fixed capital, working capital and total capital requirement

Fixed capital Unit Unit price

(Rs)

Total amount

(Rs)

Life (in

year)

Depreciation

(Rs)

Farm equipments/tools 1 2,000 2,000 5 400

Miscellaneous 1,000 5 200

Total fixed capital 3,000 600

Working capital

requirement

12,815


MART, Noida 50

Total capital requirement 15,815

Sensitivity analysis for potato cultivation

Parameters Unit Impact on unit

or cost

Profit before

interest

What if selling price falls by 20% Rs/kg 6.4 12185.5

What if costs go up by 20% Rs total 15377.4 16,023

What if business volume goes down by 20% Number 3200 12185.5

What if selling price goes up by 20% Rs/kg 9.6 24985.5

What if costs fall by 20% Rs total 10251.6 21,148

What if business volume goes up by 20% Number 4800 24985.5

4.3.6.2 Comparative analysis of various possibilities

Table 20: Inputs costs and income for potato varieties

Input

cost

Production Rate/kg Income Net

income

RoI

(%)

1. Potato (TPS) 12814.5 4000 kg 8 32000 18111 115.52

2. Potato (Kufri Jyoti, Kufri

Chandramukhi )

14261 3200 kg 8 25600 10221 59.22

Source: agriculture department data and field survey

Note: Net income is calculated after deducting input cost, depreciation and interest from gross income.

4.3.6.3 Possibility of setting up processing unit

Potatoes can be processed into potato chips and papad. However, setting up such processing units at the

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

market linkages with bulk buyers to sustain such processing units. The demand at the village level would

be low and marketing of products outside the village would require successful marketing interventions

such as proper packaging and branding, and linkages with wholesalers and retailers. It is, therefore,

suggested that for first couple of years poor (both individuals and groups) should encouraged for potato

production, productivity enhancement and market linkages as supply 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.


MART, Noida 51

4.3.6.4 Implementation plan for potato cultivation promotion

Key steps to be

followed

Activities to be performed by project

Phase I – Preparedness at the community level (3 months)

Cluster selection Select the right cluster in both project districts for initiating potato

promotion based on technical feasibility.

Identify target block, village and the community.

Social mobilization

and institution

building

Sensitize potato farmers on potential of potato cultivation using TPS as

emerged from the findings of value chain analysis described earlier and

their impact on livelihood.

Share various possibilities of potato cultivation, its cost benefit analysis,

and assess community interest level to take up the activity.

Identify the members/groups to start potato cultivation as a new unit.

Initially only a limited number of groups should be encouraged to start the

activity. Based on the results of pilots add more members. List out

members separately who are already doing the activity and want to either

expand or strengthen the activity.

Initiate participatory discussion to arrive at consensus on roles and

responsibilities of members and group leaders to take up the activity.

Preparation of

business plan

Prepare a proper business plan for potato cultivation in consultation with

the community detailing the economics of the activity, sourcing of inputs,

linkages with market players, production practices and technology to be

used, and government schemes to be availed.

Capacity building Leadership training for group members–functions and responsibility to

interact with external players.

Training in business and marketing skills (costing, pricing, accounting,

sales and marketing, negotiation, market analysis) to members using

participatory techniques.

Technical training on better practices, exposure visits to nearby best

practitioners and outside the states as well.

Identify suitable government and private agencies that can provide need-

based technical and business training at the community level. Identify

local level best practitioners.

Phase II – Establish backward and forward linkages (6 months)

Backward linkages Counsel farmers to procure raw materials including machines and

equipments collectively in bulk to reduce operational costs.

List out major inputs suppliers for ensuring quality of inputs and timely

availability.

Systematize training management.

Establish finance support for potato cultivation on unit cost basis.

Production Implement best practices.

Clarity of roles, specialization and continuous skill improvement

Bring quality control in production to achieve efficiency, higher

productivity at lower costs.


MART, Noida 52

Better record keeping and financial management.

MIS development and multidimensional intervention opportunity.

Market access Identify suitable and multiple markets and prepare list of market players

with their contact details.

Engage in bargaining, marketing of produce and realize better price.

Clarify on profit sharing and funds rotation among members in case of

group activity.

Build System for collaborations and employment

Phase III – Up-scaling (9-12 months)

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.

Strengthening

Institution

Facilitate secondary institution (producer group) to upscale and sustain

the initiative.

Plan capacity building for strengthening of secondary institutions

Diversify activities to increase income

Create village level cadres to extend technical and marketing inputs to

community at village level.

Provide handholding and technical support to secondary institution

Legal aspects Compliance to legal implications for excise, sales and VAT (once activity

achieves scale it would be required to source inputs directly from outside

the state).


MART, Noida 53

4.4 Vegetable Cultivation Value Chain

4.4.1 Background

Vegetables are the excellent source of vitamins,

particularly niacin, riboflavin, thiamin and vitamins A

and C. They supply minerals such as calcium and iron

besides proteins and carbohydrates. They thus make an

essential part of our food basket. Tripura grows a large

variety of vegetables. Most vegetables, being short

duration crops, fit very well in the intensive cropping

system and are capable of giving high yields and better

economic returns to the growers.

Food and Agricultural Organization (FAO) predicted that

the world population would be eight billion by the year

2030 and therefore, the demand for food wouold increase dramatically. While global population has

increased over 70 per cent, per capita food consumption has been almost 20 per cent higher. Asia is the

leading producer of vegetables with a 61 per cent total volume output and a yearly growth of 51 per cent.

However, the U. S. continues to lead the export of fresh fruits and vegetables worldwide with orange,

grapes and tomatoes. The top six fruit producers, in declining order cof importance are China, India,

Brazil, USA, Italy and Mexico. China, India and Brazil account for almost 30 per cent of the world’s fruit

supply, but since most of this production is destined for domestic consumption its impact on world trade

is minimal.

Agriculture and allied sector is the backbone of the state’s economy. Tripura is a sub tropical and tropical

zone and produces numerous fruits and vegetables round the year. A total of 3.10 lakh MT (refer table) of

vegetables are produced every year. The state has recorded 62% increase in vegetable production in the

past seven years. The reason behind growing preference for vegetable cultivation is the decreasing land

holding. From 1.25 hectare average landholding per farmer in the state in 1976-77 to 0.6 hectare in 1995-

96 (economic review 2006-07 and 2008-09, Tripura) there is 50% reduction in average landholding in

the state. Small landholding doesn’t provide sufficient income from agriculture making farmers shift to

other farm activities to sustain their family. Horticulture in the state has thus seen a spurt in recent years.

Crops Area

(in thousand ha)

Production

(lakh MT)

Productivity

(MT/ha)

Summer vegetables 13.78 1.44 10.48

Winter vegetables 12.71 1.66 13.09

Total 26.49 3.10 11.70

Source: Economic review 2008-09

The state population is estimated to reach 38.30 lakh by 2015 as a result demand for foodgrains, fruits,

vegetables, dairy products and meat will also increase. Since the state is a net importer of farm produce, it


MART, Noida 54

would be necessary to increase its farm productivity, especially vegetables. Currently factors impeding

farm productivity in the state are limited irrigation facilities, limited storage facilities, absence of

organized retail trade, especially of the fruits and vegetables, poor quality control and outdated farming

techniques. In the absence of proper post-harvest management nearly 30% crop gets wasted –a loss of

nearly Rs 400 crore every year.

Vegetable cultivation in Tripura has shifted from homestead to large scale commercial cultivation. There

is a growing preference for hybrid varieties due to their higher productivity. Yet, the state depends on

vegetables coming from Assam, West Bengal and Meghalaya to meet its demands. It is expected that

cultivation of off season vegetables like summer cabbage, cauliflower, and tomato will provide much

higher return per unit area to the vegetable growers of the state.

4.4.2 Feasibility of vegetable cultivation


The agro-climatic conditions are suitable for vegetables cultivation in the state. A wide range of

vegetables such as tomato, chili, cauliflower, radish, cabbage, and spine gourd etc. can be produced in

the state.

Farmers in the state have basic skill for vegetables cultivation.

There are 7-8 cold stores with over 5000 MT capacity in the state to stock vegetables for sale in the off

season and income spread throughout the year.

Government support is available in terms inputs at subsidized rates, exposure and trainings and

extension services.

Market feasibility

The demand for vegetables in the state is higher than the current production level. Therefore, a part of

this demand especially in Agartala and towns area is met from Shillong and Guwahati.

There is organized market structure in the state with two wholesale markets at Agartala (Maharajganj

and Batala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar,

Udaipur, and also 474 village level primary markets in the state where farmers can sell vegetables

directly to local consumers.

As per market sources, the last few years have recorded over 10% per annum increase in vegetable

demand at Agartala wholesale markets.

Economical feasibility

The cost of investment for chili production is Rs 9050 per 0.4 acre (1 kani) which is affordable for a

small farmer. The overall income is 22,400 with 103% return on investment.

Farmers use vegetables for self consumption that provides nutritional security thus saving cost to the

family.


MART, Noida 55


Vegetables can be grown throughout the state. It gives higher productivity in plains compared to sloppy

lands. The major vegetable growing areas in the state are Teliamura, Bishalgarh, Sonamura, Meleghar,

Mohanpur, and Narsingarh.


Vegetables are mainly consumed for making curries and snacks in daily food in the state.

4.4.5 Value chain for vegetables

4.4.5.1 Value chain Map for vegetables

* The rates are shared by wholesalers and retailers for Chilli coming from Shillong and Guwahati.

Vegetables are sold in the state throughout the year. The state is a net importer of vegetables: around

30 to 40 MT of supplies (tomato, cabbage, cauliflower, carrot, green chilli, and cucumber) per day at

Agartala wholesale markets come from Shillong and Guwahati from June to October. These are off

season vegetables and are grown during winter season in the state from November onwards. 25-30MT

vegetables every day come from within the state to Agartala.

Wholesale markets Shillong/Guwahati



Wholesalers

(Agartala)


Consumers

Wholesalers

(Subdivisions)

Retailers (Sub divisions)

Consumers

Retailers

(Agartala/Subdivisions

Consumers (Local markets/haats)


Rs 40-45/kg

Rs 50-60/kg

Rs 20-25/kg*


MART, Noida 56

From wholesale market at Agartala vegetables are supplied to mainly two districts i.e. South Tripura

and West Tripura. In the remaining two districts of Dhalai and North Tripura vegetables come from

Dharmanager wholesale market (North Tripura) and Silchar (Assam) wholesale market.

There are 474 village level markets in the state where farmers sell locally grown vegetables directly to

consumers.

Producers get nearly 40% of the value paid by the consumers; the remaining is taken by various

channel partners.

Agartala, with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004)

is very large vegetable market and gets supplies from both within the state and from Shillong and

Guwahati.

Transportation cost from Guwahati and Shillong to Agartala come to Rs. 2 to Rs 4 per kg depending

upon the quantity transported. Higher the quantity transported lower is the transportation cost.



The main inputs required for vegetables cultivation are seeds, fertilizer, pesticides/weedicides, and agri

implements. The suppliers of these inputs (government and private players) are located at sub division

level and at Agartala wholesale markets. Water for irrigation is available from ponds and rivers. All inputs

are available within the state and can be procured from local wholesalers. Agriculture department

provides fertilizers through it local stores at sub division level.

4.4.5.2.2 Producers


Farmers depend on private players and government agencies for purchasing agriculture inputs. They

procure hybrid vegetable seeds, pesticides and agriculture implements from local retailers. Seeds are

available under various government schemes as well. Fertilizers are procured from local government

stores and open market. However, availability of fertilizers in government stores is not regular and

sufficient, as a result farmers have to depend on the private retailers and wholesalers who take advantage

of short supply and sell them at 1.5 to 2 times higher than government prices. Cow dung is available

locally within the village itself. Farmers procure it individually just before the production season starts.

They purchase inputs in cash but also get it on credit and repay the amount immediately after the harvest.

For inputs purchased on credit, farmers pay higher prices. MFI such as Bandhan and Basix operate in the

area and extend loan products for income generation and the effective rate of interest is over 30% per

annum. Farmers either own or hire pump sets for irrigating their farms from rivers or ponds. Big farmers

have practice lift irrigation. Tripura has nominal rates for agriculture electricity consumption.


MART, Noida 57


Farmers grow vegetables throughout the year in small portions of land in 0.1 acre to 1 acre. Vegetables

grown commonly are brinjal, tomato, cabbage, cauliflower, bitter gourd, beans, and chilli throughout the

year. The production is higher during September to February as more farmers get engaged in the activity.

The same land is used 3-4 times to grow different varieties of vegetables. At a time farmers grow several

types of vegetables. Land preparation is also done 3-4 times depending on the number of times the crop is

harvested.

There is an increasing trend towards use of power tiller as it saves the time and is affordable. It is used for

land preparation that is normally done two to three times and costs Rs 150 per hour per kani(0.4 acre).

Vegetable farmers use both chemical fertilizers and organic manure (cow dung and mustard oil cake) at

the time of land preparation. Chemical fertilizers used are super phosphate, di-ammonium phosphate,

muriate of potash and urea. Urea is used in split doses whereas other fertilizers are used during land

preparation. Plantation is done in two ways: either the farmers prepare the seed bed to grow seedlings

and transplant them to fields when ready, or buy the seedlings from the market or fellow farmers and

transplant them in the field. Pesticides are used 2-3 times only after a pest is spotted. This however,

affects the crop productivity. Though farmers attend training and exposure programmes organized by

horticulture department, practice of the recommended measures is low.


Farmers sell an overwhelming quantity of vegetables directly to wholesalers at sub division markets and

Agartala. A small percentage of vegetables are sold to local traders who visit villages and also in local

weekly markets (haats). Transactions are mainly in cash. As vegetables are perishable, farmers are in

compulsion to sell them immediately. This vulnerability hampers in negotiating better prices. Farmers

who sell directly in weekly markets realize higher return during the morning hours when demand is high.

By evening prices come down as farmers are in hurry to sell off whatever produce is left with them.


There are two vegetable wholesale markets in Agartala; Maharajganj Bazar and Batala. There are around

35 wholesalers cum commission agents in Maharajganj Bazar and 20 wholesalers cum commission agents

in Batala market.

Vegetables such as tomato, cabbage, cauliflower, carrot, green chilli, and cucumber come from Shillong

and Guwahati to Tripura for 4 to 5 months (June to October) in a year. These are off season vegetables so

their prices are high during this period. However, as the supply starts coming from within the state prices

come down. The supply from within the state is throughout the year. About 15-20 MT of vegetables come

from Shillong and Guwahati per day by truck at Maharajganj Bazar and 10-15MT at Batala market. It

takes 2 days for truck to reach the Agartala markets. Maharajganj Bazar is a bigger wholesale market

where 70% of vegetables come and Batala trades in 30% vegetables daily. From wholesale markets

vegetables are supplied to South District and West District also.


MART, Noida 58

As per wholesalers, around 25-30 MT vegetables come to Maharajganj Bazar and Batala market from sub

division level markets in West and South district such as Melagarh, Sonamura Bishalgarh, Teliamura and

Mohanpur and South District. In North district and Dhalai district local vegetables are sold in local

markets and some quantities go to Dharmanagar wholesale market and to Karimganj and Silchar

(Assam). Commission agents take 7% commission from farmers who sell in the wholesale markets.

Wholesalers buy in cash and sometimes on credit.

4.4.5.2.4 Retailers

There are nearly 200 registered retailers in Maharajganj markets and nearly 150 registered retailers in

Batala retail market. Retailers procure vegetable from wholesalers in the morning hours from 6 am to 7am

and from weekly markets (haats) from 11 am to 4 pm. Retailers sell vegetables in retail markets from 7 am

to 12 noon and in the evening from 5 pm to 9 pm. Retailers also bring vegetables from local weekly

markets where farmers bring vegetables directly in shared four wheeler mini truck. One retailer brings

40-50 kg per day from wholesale. Retailers pay Rs 10-25 per quintal as transportation cost within the city

area. They also pay Rs 8 to Rs 10 as labour charge per bag towards loading and unloading. Wholesalers

sell to retailers in cash and sometimes on credit.


Transporters are located at Guwahati and Shillong. Once the deal is agreed upon between wholesalers on

both sides Tripura wholesalers hire transport services to deliver vegetables at Agartala. As per information

shared by transporters, vegetables are generally transported in 6 wheeler truck that carries 8.5 MT to 9

MT per trip. The distance from Guwahati to Agartala is 600 km and from Shillong to Agartala it is 450

km. It costs Rs 400 per quintal from Guwahati to Agartala and Rs 350 per quintal from Shillong to

Agartala. Local transportation charge within the state is Rs. 50-70 per quintal. The total transportation

cost come to Rs 30,000 to Rs 36,000 per trip. In case of a 10 wheeler truck, carrying 15 MT vegetables,

transportation cost from Guwahati to Agartala is Rs 28,000 to Rs. 30,000. Mini 4 wheeler trucks carrying

3 MT to 4 MT costs Rs 13,000 to Rs. 15,000. Transportation adds up Rs. 2 to Rs 4 per kg to the total cost

depending upon the quantity transported. Tomatoes are transported in wooden packs of 27-28 kg.

Cauliflowers come in pack size of 30-35 kg per bag. Cabbages come in loose. Labour charge per quintal is

Rs. 8; Rs 4 per bag for loading at source point and Rs 4 per bag for unloading at destination point.

4.4.5.2.6 Consumers

Majority of the population of the state consumes variety of vegetables. Consumers generally purchase

vegetables once or twice a week from nearby weekly markets and daily markets in towns. Prices of

vegetables fluctuate on daily basis and are guided by supply and demand situation. As the local produce

enters the market, the prices of off season vegetables come down. The table below shows that the retail

price of chilli coming from Guwahati has falls from Rs 50-60 per kg to Rs 40-50 as local produce enters

the market. Price paid by consumers also varies from vegetable to vegetable depending upon the variety,

size, and time of purchase.


MART, Noida 59

Table 21: Wholesale and retail prices of vegetables

Agartala

wholesale

markets

Vegetables Wholesaler to Retailer

(Rs per kg)

Retailer to Consumer

(Rs per kg)

Vegetables

coming from

outside the

state (1st and

3rd October

2010)

Tomato 25-30 35-40

Cabbage 18-20 22-25

Cauliflower 40-45 45-50

Carrot 40-45 45-50

Green Chili 40-45 50-60

Cucumber 15-20 22-30

Vegetables

coming from

within the

state such as

Teliamura,

Bishalgarh,

Sonamura,

Meleghar,

Mohanpur,

and

Narsingarh

(5th October

2010)

Spine Gourd 22-25 30

Ridge Gourd 25-30 35-40

Pointed Gourd 20-25 30

Cucumber 20 25-30

Cooking Banana 4-6 (per 4 piece) 8-10 (per 4 piece)

Bitter Gourd 22-25 30

Sweet Gourd 22-23 30

Bottle Gourd 20-25 (per piece) 25-30 (per piece)

Arum 20-25 (per piece) 25-30 (per piece)

Brinjal 30-35 35-40

Lady’s Finger 30-35 35-40

Ash Gourd 20-30 (per piece) 25-35 (per piece)

Radish 6-10 (per 4 piece) 10-15 (per 4 piece)

Green Chili 30-35 40-50

Source: field survey in wholesale and retail markets


The table 22 below illustrates constraints faced by farmers for key livelihood factors and critical

interventions points to overcome constraints.

Table 22: constraints faced by farmers and critical interventions points

Factor Constraints faced by marginal and

small farmers

Critical intervention points

Input sourcing • Often quality of the seeds available in

the open market is not good that

results in low productivity.

Availability of fertilizers is low when

the demand is high as a result prices go

up by 50-200% in peak demand times.

The state does not have its own supply

of fertilizers and pesticides. This

promotes hoarding by local traders

and high prevalent rates of farm

inputs.


and sub division markets and

establish tie ups with them for their

timely and quality procurement.




can procure inputs in bulk well in

advance of sowing season.


MART, Noida 60

Farmers travel to Agartala and

subdivision towns adds to operational

costs.

Production

practices and

technology

used

Land in some places is not suitable for

vegetable production due to low soil

fertility.

Inadequacy of government tube wells

for irrigation and their maintenance

affects productivity.In ADC villages

farmers have to hire pump sets at the

rate of Rs 80 per hour to irrigate their

sloppy fields. Extension services from

agriculture department are not

available on time.


knowledge regularly resulting in low

yields.

Vegetable cultivation should be

promoted after suitable technical

assessment of the area with support

of agriculture department.

Develop village level cadre of

technical persons to provide paid


Regular training and exposure visits

to best practitioners in the local area

can help poor farmers.

Linkage with local banks and

government schemes such as SGSY

can help famers in accessing loan for


equipments.

Access to

finance

Availability of timely and right amount

of credit is an issue. Bank loan requires

a lot of paper work and most farmers’

don’t have proper papers for their

land.

MFIs working in the area provide

loans but their loan products don’t

match with market realities.

Organise poor farmers in SHGs to

link them with local banks to ensure

their financial inclusion.



them to develop loan products for

vegetable cultivation based on its unit

cost.





final consumers.

Scope for collectivizing farmers to

sell collectively and directly to higher

order markets at sub division towns

and Agartala for better price

realization.

Access to

support

services

provided by

government

and private

agencies

Quality of inputs especially seeds and

pesticides procured from private

players are doubtful.

Poor or inadequate adoption of

scientific farming techniques

imparted by agriculture department

severely affects the yield.

Availability of works under NREGA at

Rs 100 per day has pushed labour

costs to as high as Rs 150 per day.

Cold storages are few and far away due

to which farmers are unable to use it.



to help famers link with right private

players to access quality inputs and

need based government schemes.

Promote use of latest machines and

tools such as power tiller that work

faster and saves cost.

Set up new cold stores after the

feasibility study.

Cooperation

among farmers

and institutions

There is low affinity among farmers for

collective action for sourcing of inputs

and sale of vegetables resulting in

Farmers can take up vegetable

cultivation activity individually,

however, souring of inputs and


MART, Noida 61

building higher operating costs.

marketing can be planned

collectively.

Govt. policies

and external

ecosystem



market failure making vegetable





markets.


Project can promote vegetable cultivation to be taken up by an individual family. Individual farmer

will do the production but sourcing of inputs and marketing can be done collectively.




4.4.6.1 Economics of vegetable cultivation (Green chili cultivation)

Calculations have been done for green chili cultivated over 1 kani (0.4 acre or 0.16 hectare). Cost of

various inputs and outputs are based on information collected from villagers, market players and

agriculture department.

The rate of interest paid by the farmers is 1% per month. It is assumed to be taken for three months.

The commission to agent is 7%.

The wholesale price of green chili is taken as Rs 28/kg.

Table 23: Economics of green chili production


Price(Rs)

Total

Amount(Rs)

Income

Sale of green chili Quintal 800 28 22400

Cost

Tillage operations cost Lumpsum 1 320 320

Irrigation Lumpsum 1 240 240

Seed cost Kg 0.2 600 120

Use of fertiliser 0

MOP Kg 7 6 42

Super Phosphate (SSP) Kg 25 6 150

Urea Kg 26 5.75 149.5

FYM Kg 4000 0.33 1320

Plant protection measures Lumpsum 1 240 240

Labour involvement Manday 25 100 2500

Marketing expenses Commission 22400 0.07 1568


MART, Noida 62



Misc Lumpsum 1 1000 1000

Total running cost 9049.5

Income 13350.5

Depreciation 600

Profit before interest 12751

Interest (12%) 3% 12,050 361.485

Net profit 12389

ROI 102.82%

Payback period(year) 0.9



(Rs)

Total amount

(Rs)

Life (in

year)

Depreciation

(Rs)




Working capital requirement 9,050


Sensitivity analysis for vegetable cultivation


or cost

Profit before

interest



What if business volume goes down by 20% Quintal

640 8270.5



What if business volume goes up by 20% Quintal

960 17230.5


MART, Noida 63

Vegetables cultivation in one acre of land (multiple vegetables)

Assumptions

Green chili, Radish and Cauliflower is grown in one acre of land; green chili in 0.04 acre, Radish

in 0.4 acre and cauliflower in 0.2 acre

The average cost for vegetables is taken as Rs 9 per kg


Price(Rs)

Total

Amount(Rs)

Income

Sale of vegetables (green chili +

Radish + cauliflower)

Quintal 6800 9 61920

Cost



Seed cost Kg 1 1984 1984

Use of fertiliser 0

MOP Kg 20 6 120

Super Phosphate (SSP) Kg 82 6 492

Urea Kg 66 5.75 379.5

FYM Kg 10400 0.33 3432



Marketing expenses Commission 61920 0.07 4334.4




Total running cost 21842

Income 40078

Depreciation 600


Interest (12%) 3% 24,842 745.2

Net profit 38,733

ROI 155.92%

Payback period(year) 0.6



(Rs)

Total amount

(Rs)

Life (in

year)

Depreciation

(Rs)




MART, Noida 64


Working capital requirement 21842

Total capital requirement 24842

Sensitivity analysis for vegetable cultivation (multiple crops)


or cost

Profit before

interest



What if business volume goes down by 20% no

5504 27094.1



What if business volume goes up by 20% Quintal

8256 51862.1


The table 24 below illustrates input costs for various vegetables, market rate, gross income and net

income, and retun on investment from various vegetables.

Table 24: Inputs costs and income from vegetables

Vegetables Input

cost

Production(

kg)

Rate/kg Income Net

income

RoI(%)

Green Chili 9050 800 28 22400 12389 103

Radish 9898 4800 5 24000 13116 102

Tomato (hybrid) 14039 6400 5 32000 16850 99

Cauliflower (certified) 13161 2560 12 30720 16474 102

Cabbage (certified) 12650 4800 6 28800 15081 96


Note: Calculations are done for 0.4 acre of land. Net income is calculated after deducting input cost,

depreciation and interest cost from gross income.


Vegetables can be processed into pickles. However, setting up such processing units at the village level

would require entrepreneurial skills among poor, marketing and technical skills, and ensured market

linkages with bulk buyers which poor lack to sustain such processing units. The demand at the village

level would be low and marketing of products outside the village would require successful marketing

interventions such as proper packaging and branding, and linkages with wholesalers and retailers. It is,

therefore, suggested that for first couple of years poor (both individuals and groups) should encouraged


MART, Noida 65

for vegetable production, productivity enhancement and market linkages. 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.

4.4.6.4 Implementation plan for promoting vegetable cultivation

Key steps to be

followed



Cluster selection Select cluster for vegetable cultivation based on technical feasibility.


Social

mobilization and

institution

building

Share various possibilities of vegetable cultivation, its cost benefit analysis, and

assess community interest level to take up the activity.

Identify the members/groups to start vegetable cultivation as a new unit.


activity. Based on the results of pilots add more members gradually. List out





Preparation of

business plan

Prepare a proper business plan for vegetable cultivation in consultation with

the community detailing economics of the activity, sourcing of inputs, linkages

with market players, production practices and appropriate technology

providers, and government schemes to be availed.

Capacity building Impart leadership training to the group members.

Emphasize participatory method in imparting training in business and

marketing skills (costing, pricing, accounting, sales and marketing, negotiation,

market analysis).

Impart technical training in better practices by conducting exposure visits to

nearby best practitioners and outside the states as well.

Identify suitable government and private agencies that can provide need-based

technical and business training at the community level. Identify local level best

practitioners as resource persons.


Backward

linkages

Counsel farmers to procure raw materials including machines and equipments

collectively in bulk to reduce operational costs.


availability.

Systematize training management

Establish finance support for vegetable cultivation on unit cost basis.



MART, Noida 66

Ensure clarity of roles, specialization and continuous skill improvement

Bring quality control in production to achieve efficiency, higher productivity

and at lower costs.

Impart training in record keeping and financial management.


Market access Identify suitable and multiple markets and prepare list of market players with

their contact details.

Encourage farmers to do simple value addition such as sorting and grading to

get better prices.

Engage in bargaining, marketing of produce to realize better price.

Counsel members of the group activity for funds and profit sharing.

Build system for collaborations and employment


Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate units from time to

time to find out gaps, take corrective steps and ensure delivery of appropriate

extension services.

Strengthening

Institution

Facilitate secondary institution (producer group) to upscale and sustain the

initiative.







achieves scale it would be required to source inputs directly from outside the

state.


MART, Noida 67

4.5 Fish culture Value Chain

4.5.1 Background

Fish is a popular dietary source of protein due to its

easy availability and affordability. However, the

availability of fish in natural environs has considerably

declined owing to over consumption and pollution of

water bodies. Scientific methods of fish farming are

now used for increasing fish availability for

consumption. Farmers can easily take up fish culture

in village ponds or tanks to supplement their income.

It also creates gainful employment for skilled and

unskilled youths.

The Indian Fisheries occupies third position in global

scenario in terms of fish production which is 4.4 per cent of global fish production. The contribution of

fisheries sector is 1.1 per cent to the total GDP and 5.3 per cent to the agricultural GDP. Fishery sector has

emerged as the largest group in agricultural export of India with quality of 5.2 lakh tones and value of

USD 1.78 billion, respectively. The sector employs 14 million of the population. Indi’s focus on doubling

freshwater aquaculture production through increase in productivity and area is likely to significantly

increase fish production by 2015.

The Government of Tripura lays special focus on promoting fish farming in the state as fish is the most

important part of diet of 95% population and an important source of income and nutritional security for

the rural population. Sensing this opportunity and importance, the state government, through its

department of fisheries, has formulated a perspective plan for 2011-2012 to attain self sufficiency in fish

(availability @ 13 kg per capita from its own production). After 1978 separate fishery directorate was

formed in Tripura. Earlier it was under agriculture director.

Fishery has a good potential in the state. Presently the state has 1,57,688 water bodies for pisciculture

with a total area of 20521.07 ha that includes open water bodies like rivers, and lakes where fishery

department leaves fingerlings that help poor in fishing activity; the other category includes tank and

pond. Presently 1,60,000 persons are engaged in fishery in the state. Fish trading is done throughout the

year. Different varieties of fish are available to consumers in the state such as hilsa, rohu, catla etc. As

people are finding fisheries more profitable than agriculture, a number of farmers have converted their

agriculture land to pond for pisciculture. Fish culture is mainly rain-fed as 40% water bodies in the state

are non perennial.

The current average productivity is 2,154 kg/ha/year. The state’s target by year 1012 is 3050 kg/ha/year.

To achieve the target, the Government is promoting scientific fish culture through demonstration

programme and encouraging entrepreneurship among SHGs, formation of model aquaculture panchayats

anddevelopment of medium cost fish culture based special village. Currently, there are 142 registered


MART, Noida 68

fishermen co-operative societies in the state that manage a number of water bodies. Societies conduct

elections every three years to elect representatives who work for fish promotion in the state.

4.5.2 Feasibility of fishery in Tripura


The agro climatic conditions are suitable for fish culture in the state. A wide range of fish varieties

such as Rohu, Catla, Brigette, Silver Carp, Mrigel, Singhi/Magur and small varieties such as Gulsa,

Kai, Puti are produced in the state.

1,57,688 water bodies are available in the state for fish culture. As on March 2010, 20,521 hectare (as

against 10,140.8 hectare in 1998) of culturable water area and 7878.6 hectare of captured (open)

water area was available in the state.

The basic skills for fishery are available with the poor community.

The State provides an enabling environment for fishery promotion with 18 hatchery units (both for

fish seeds and prawn seeds), 7 fisheries training sample centres, 19 soil and water testing laboratory,

11 fish feed manufacturing plants, 2 fisheries awareness centres and 398 fisheries circle offices in the

state.

Fishery department promotes 41 model aquaculture panchayats for demonstration of best and latest

practices of fish culture to rural population.

Market feasibility

The demand for fish in the state is higher than the current production level. A part of this demand is

met from Bangladesh, Andhra Pradesh and Kolkata.

The state has well organized markets. Two wholesale markets at Agartala and sub division markets at

Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur, and 474 village level primary markets

where poor can sell fish directly to local consumers.

In the last few years, the volume of fish coming to Agartala wholesale market has grown by over 20%

per annum. As per market sources it was 50 metric ton in 2008; 60MT in 2009 and 80MT in 2010.

Within the state also fish production has increased from 36991 MT in 2008-09 to 41,054MT in 2009-

10.


The cost of investment is Rs 62,326 per 0.4 acre which can be availed from the banks. The net income

per year is around Rs 25,611 with 41 % return on investment.

Factors that affect the fish culture productivity

Soil texture – Soil with higher water retention capacity is better for fish culture

Soil pH – low pH value are favourable for fish culture

Nutrients use– High productivity depends on timely use of the nutrients

Fertilizer application – timely use of fertilizers ensures high productivity

Control of predators – timely control of predators ensures higher productivity and lower are input costs


MART, Noida 69

The bank finance and government subsidy is available for excavation. Under NREGS, the cost of

excavation of new pond (estimated at Rs 60,000 per o.4 acre) and inputs can be financed at no cost to

farmers.

Average productivity has increased by over 68 % in last 12 years; from 1280 kg/ha/year in 1998 to

2074 kg/ha/year in 2008-09 and 2154 kg/ha/year in 2009-10.


Except forest area (nearly 60% of the state’s geographical area) fish culture is practised throughout the

state (20,521 hectares) including project area of West (7757.98 hectare) and North districts (2797.26

hectare).


Fish is consumed as a popular diet by over 95% population in the state. It meets an important nutritional

requirement of the state population.

4.5.5 Fish value chain 4.5.5.1 Figure 6: Value chain map of Fish culture

* The rates given are for Rohu fish from Andhra Pradesh.

Wholesale markets

Kolkata/Bangladesh



Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler

(Subdivisions)

Retailers

(Subdivisions)

Retailers



Input Suppliers (Within state) Fingerlings, net, feed supplement, equipment, medicines etc.

Rs 80-90/kg

100-120/kg

Rs 60-70/kg*

Fish collectors and/or traders


MART, Noida 70

The state is a net importer of fish; 95% of the supplies at Agartala wholesale markets come from

Bangladesh, Andhra Pradesh and West Bengal.

95% population consumes fish in the state. Agartala with a population 1,89,327 as per 2001 census

(367822 after municipal expansions in 2004) is a huge market for fish and depends on fish coming

from both within and outside the state.

Local fish supplies are to the tune of 10-12 MT; 4MT comes in the wholesale market and 8-10 MT

directly in the retail markets.

Producers get only 50% of the value paid by the final consumers; rest of the value is taken by various

channel partners.

Fish are sold in the state throughout the year. However, local supply reduces during winter season of

December to February.

There are 474 village level primary markets in the state where farmers sell local fish directly to the

consumers.



The main inputs for fish culture are fingerlings, net, feed supplement, oil cakes, lime, equipment,

medicines, and water. All inputs are available in the state and except fingerlings, which are available

locally, all other inputs are procured by wholesalers from West Bengal (Kolkata) and Andhra Pradesh and

therefore, their costs are higher. Farmers procure these inputs from block, sub division or Agartala

wholesale markets.

There are 18 hatcheries in the state that supply fingerling to the farmers. SHGs have also been trained by

fishery department for seed production. Farmers receive inputs such as fish seeds and institutional credit

linkages from Fish Farmers Development Agency (FFDA) operating in all districts under government

sponsored schemes like SGSY and Swavalamban. New equipment such as aerators are supplied under

various government schemes to improve productivity. Farmers also benefit from government support in

creation of new water bodies through construction of ponds and mini-barrages, and

reclamation/renovation of seasonal water bodies.

4.5.5.2.2 Fish Farmers

Huge demand for fish coupled with well organised market has made fishery a popular income generating

activity in the state. As per the fishery department, presently about 1,60,000 persons are engaged in this

activity in the state. It is popular among farmers in the project area of North and West districts, where

small and marginal farming communities practice it over 0.4 acre to 4 acres of land, which constitutes

10% to 60% of their total landholding. As farmers started finding fisheries more profitable than

agriculture, a number of them converted a part of their agriculture land into tanks or ponds for fish

culture. Looking at the opportunity, in the last few years some farmers have completely shifted to fish

culture. Some of them even lease out their ponds to small farmers on agreed terms of profit sharing.


MART, Noida 71


Farmers procure fingerlings from local markets and also from government hatcheries. Fish farmers also

use breeding fish of different sizes (by weight) for production purpose. Cow dung is available within the

village. Inputs like mustard oil cake, quick lime and fertilizers are available in nearby markets. Quick lime

and fertilizers are also available from panchayat office/govt. departmental store but short supplies compel

farmers to procure inputs at higher rates from open market. Inputs are sometimes available on credit

without interest and farmers repay it after the harvesting.


Farmers generally follow traditional methods. However, several of them have learnt latest practices at

gram panchayat model fish farms established by the fishery department. The common varieties for fish

culture include Catla , Rohu, Mirgel, Carfu, Grass Carp, Silver Carp. Few farmers also culture Brigette

and Japani Punti. Fish culture is a less intensive activity where farmers spend 1-3 hours daily but it

requires regular monitoring. Whereas male members are engaged in procurement of inputs, production

and marketing, women and sometimes grown up children are involved in production activity. Farmers

employ local villagers to manage pond operations and pay them Rs 100 to Rs 150 per day.

Farmers use quick lime in the pond to get rid of unwanted weeds and predatory fish. Cow dung, mustard

oil cake, rice husk and poultry excreta are used every month as fish feed. Poor farmers use a mixture of

fish feed as a substitute available from local market and fisheries department. Some farmers are using

aerator, which they received from under government schemes, to increase fish productivity; however it is

not in common use owing to its high cost of Rs 40,000. There is low adoption of standard package of

practices suggested by the fishery department among small farmers due to higher input costs and lack of

knowledge for optimal utilization of resources. Fishlings take about three months time to optimally grow

for harvest and sale.


Farmers sell fish in weekly markets and nearby block and sub division markets. Due to high demand of

fish the entire catch is normally sold in weekly haats and nearby daily markets within the block area. Big

farmers also sell in nearby wholesale markets at sub divisions through commission agents and pay 6-7%

commission. Commission agents also charge labour cost (loading and unloading) from farmers. Farmers

bear transportation cost (Rs 150 to Rs 200 for the entire lot) to bring the fish to sub division markets.

Farmers engage local villagers in selling the catch in the market and bear their food and travel expenses

and pay Rs 20 per trip. SHGs engage fishermen to catch fish and give them up to 20% commission. All

transactions are done in cash.

Fishes are sold in lot (without sorting) and also by sorting varieties. Sorting helps farmers fetch higher

prices. Price of fish depends on its size (weight) and variety. Generally prices of fish of same variety

weighing between 200 to 500 gm; 500 to 800 gm ; 800 gm to 1 kg ; 1 kg to 2 kg ; and above 2 kg fetch

same prices. Price of smaller size fish is less than bigger size fish of the same variety as illustrated in table

25.


MART, Noida 72

Table 25: Fish wholesale prices for farmers

Type of fish Prices received by farmers from wholesaler (Rs/kg)

Large size Small size

Rohu 135 90

Carfu 140 87

Mirgel 120 75

Brigette 95 68

Source: Field survey in Kailashar sub division market

4.5.5.2.2.4 Fish collectors and/or traders

Fish collectors and/or traders are located in villages and nearby towns. They come to villages in group of

2-3 persons with all required equipment such as net, catch the fish for interested fish farmers and sell it in

the nearby wholesale markets. They normally keep Rs 10 to Rs 15 per kg of margin on the wholesale price.

Traders work on commission basis and take 10-20% margins for procuring fish at farm gate and selling

them in wholesale markets.


Two wholesale markets in the state capital of Agartala are located at Maharajganj and Batala.

Maharajganj market has nearly 40 wholesalers and Batala nearly 35 wholesalers. Wholesalers also act as

commission agents and charge 6% commission. Fish in these wholesale markets come from Andhra

Pradesh, Bangladesh and West Bengal.

Place Quantity coming per

day (MT)

Type of fish

Bangladesh 40 (52%) Rohu, Catla, Hilsa and small fish

Andhra Pradesh 30(38%) Rohu, Catla

West Bengal 4(5%) Rohu, Catla

Tripura 4(5%) Rohu, Catla, Brigade, Silver carfu, singh and mangore

(live), small fish (gulsa, kai, puti etc.)

Total 78

2008 2009 2010

Fish volume coming per day at

Agartala

50MT 60MT 75MT


Several of the wholesalers the study team met have this as their traditional family business for past

few generations.

70% fish come in Maharajganj market and 30% fish come in Batala market. Fish comes in 35 to 40 kg

per pack size from Andhra and 50 to 200 kg per pack size in baskets from Bangladesh.


MART, Noida 73

From wholesale market fish goes to all four districts at Udaipur (South), Ambassa (Dhalai),

Dharamnagar(North) and West district. Dharmanagar and Kailasahar sub-Divisions also get fish from

Silchar / Karimganj (Assam) as these two sub-divisions are situated nearby Assam-TripuraBorder.

Local fish in Agartala comes from Dumbur Nagar block (Gandachada sub division in Dhalai district),

Uaipur (South), Melaghar and Bishalgarh blocks (West). About 2-4 MT local fish is sold from

Agartala based retail market and sub-divisional local fish catch is sold in the sub-division local

market. Wholesaler gives cash payment to local farmers.

The wholesale markets provide employment to nearly 2000 labours.

4.5.5.2.4 Retailers

There are nearly 10,000 retailers in the state. In Agartala there are eighteen registered municipal

retail markets. As many as 50-70 retailers are registered with each retail market. For example, Lake

Chowmuhani retail market has 55 retailers registered with the municipality and in Durgachowmuhani

70 retailers are registered. Retailers pay onetime fee of Rs 3,500 to the municipality and Rs 40 as

monthly charge (tauji) to Municipal Corporation.

Retailers within the Agartala city procure fish from wholesale market by 6 am-7 am and sale in retail

from 7am to 12 noon. If the stock lasts, it is sold in the evening. Some retailers sell in one market in

the morning and other market in the evening.

One retailer brings 2 boxes. One box contains 40 kg fish with around 40 kg ice. Each retailer sells 40-

50 kg per day. For example, total sale in Durgachowmuhani market per day comes to 2,800 kg.

Transportation from wholesale market to retailer market in town area comes to Rs 20 per box.

Retailers pay Rs 10 as labour cost per box to wholesaler. Retailers sell in cash to consumers.


Transporters are located at the source points in Andhra Pradesh and Kolkata. From Kolkata in West

Bengal fish come by air cargo. From Andhra Pradesh fish come to Agartala in a 10-wheeler lorry. It

carries a load of 15 MT (10 MT fish + 5 MT Ice) and costs Rs 1,05,000 (including ice, bhusi, thermokol

box, transportation, labour). Transportation cost comes to Rs 18-Rs 22 per kg. Wholesalers at Andhra

Pradesh insure the cargo at premium of 1.2% . Some trucks stay for a couple of days till the entire

stock is sold to retailers.

Wholesaler takes labour charge from retailer for unloading (Rs 5 per box) from the truck and loading

to retailer transport (Rs5 per box). Therefore, a retailer is charged a total of Rs 10 per box.

From Agartala wholesale markets to retailers within the city fish is transported by auto van, small

truck or rickshaw, and the cost is borne by the retailers.

From Andhra Pradesh to Agartala transport takes 7-8 days and 5 to 6 days from Kolkata to Agartala.

Road route: NH-44 AP to West Bengal (Siliguri) to Assam (Guwahati) to Meghalaya (Shillong) to

Assam (Badarpur – Karimganj), Churaibari check post near Dharmnagar (Tripura-Assam Border) to

Kumarghat-Ambasa –Teliamurah –Agartala. Guwahati to Agartala is 856 km.

Train route: Guwahati to Lumding Junction (broad gauge). Lumding to Agartala by meter gauge

(Lumding – Halflong – Badarpur – Karimganj – Dharamnagar (Tripura) – Kumarghat - Ambasa –

Teliamurah – Agartala


MART, Noida 74

4.5.5.2.6 Consumers

About 95% population of the state consumes fish. Small fish have high demand as it tastes better and has

low cholesterol level. It is costlier than the big size fish. Rohu and Catla are the most preferred varieties in

the state as these are cheaper compared to local varieties. Well -off consumers prefer to buy live fish (such

as singhi and magur) that costs Rs 400 to Rs 500 per kg. The fish prices vary on daily basis based on the

supply and demand situations.

Table 27: Fish wholesaler and retail rates

State/Location

Variety


(per kg)

Retailer to consumer

(per kg)

Andhra Pradesh

Rohu Rs.80–90/- Rs100 –Rs120

Catla Rs90-100 Rs120-140

West Bengal

Rohu Rs100 -120 Rs130-160

Catla Rs100-130 Rs130-170

Bangladesh

Rohu Rs110-130 Rs140-160

Catla Rs120-140 Rs140-180

Hilsa Rs250-300 Rs300-400

Small fish Rs100-150 Rs120-200

Local (Tripura)

Rahu Rs120-150 Rs140-200

Catla Rs120-170 Rs140-250

Brigette/Silver Carp Rs50-90 Rs60-120

Singhi/Magur(live) Rs400-500 Rs500-700

Small fish (Gulsa, Kai, Puti etc.) Rs100-200 Rs120-300

Source: field survey (wholesale market at Maharajganj and retail markets at Lake

Chowmuhani/ Durgachowmuhani in Agartala)

4.5.5.2.7 Constraints-Strategy Matrix

The table 28 below illustrates constraints faced by fish farmers for key livelihood factors and critical


Table 28: Constraints faced by fish farmers and interventions points

Factor Constraints of fish farmers Critical intervention points

Input sourcing Availability of fingerlings from

government hatcheries is not sufficient.

Quality of fingerlings is often not good.

Hatcheries are not located locally so

there are problems in timely availability

of fingerlings.

Need to establish a formal

arrangement with the fishery

department for ensuring quality

fingerlings to farmers and training in

culturing fingerlings.



MART, Noida 75

Farmers procure inputs in small

quantities from nearby markets

resulting in higher cost per unit. Overall

inputs costs are higher as these come

from outside the state.


and reduce overhead costs.

Train farmers to prepare fish feed

based on local resources.

Production

practices and

technology

used

Disease is a major concern for which

farmers approach fishery department.

Farmers go for curative care rather

than preventive care.

Productivity is low as poor farmers

don’t follow standard practices

suggested by the fishery department.

Equipment such as aerator that

increase productivity significantly are

costly. Aerator of Rs 40,000 is not

affordable for a small farmer.

Theft is a common concern and the cost

of fencing prohibitive for poor farmers.

There is a lack of awareness among

farmers on new improved technologies

available in the market.

Farmers need regular trainings at

model aquaculture panchayat set up

the fishery department till such time

that they fully adopt the package of

practices based on their own practical

learning and experience of doing it.




purchasing improved equipments

and fencing for their pond.

Exposure visits to Andhra Pradesh

and West Bengal can help develop

village level best practices.

Access to

support services

provided by

government and

private agencies

Small farmers individually find it

difficult to comprehend and access

various schemes and services provided

by government agencies. Farmers don’t

have training and exposure in scientific

practices in fish culture.

Appointment of village level service

providers and implementation

agencies can link famers with

relevant schemes and services.

Access to

finance

Farmers find it difficult to individually

access finance for starting new income

generation activities and expanding

existing activities. Most farmers source

funds from village level money lenders

who provide loans at 4% to 5% per

monthly rate of interest.

Formation of SHGs of poor farmers

will ensure their financial inclusion

by local banks.

Linkage could also be established

with financial institutions and MFIs

such as Bandhan, SKS who operate in

Tripura and provide loan at an

effective rate of interest above 30%

per year.





final consumers


farmers to sell collectively and

directly to higher order markets at

sub division towns and Agartala for

better price realization.


MART, Noida 76

Cooperation

among farmers

and

institutions

building

In the absence of collective action in

inputs sourcing and fish sale operating

costs of farmers are high.

Small farmers lack entrepreneurial

attitude to pursue fish culture

commercially.

Famers can take up the activity

individually, however souring of

inputs and marketing can be planned

collectively for economic gains.

Poor farmers need to be organised

and their capacity be built in

technical skills as well as in business

dynamics by linking them with

suitable training agencies. Exposure

to successful initiatives will hasten

the process.

Govt. policies

and external

ecosystem



market failure making fish culture

unviable.




markets.


Project can promote fish culture to be taken up by an individual family. Individual farmer will do the

production but sourcing of inputs and marketing can be done collectively.




4.5.6.1 Economics of fish culture

Composite fish culture

The composite fish culture system is a technology developed in India by the Indian Council of Agricultural

Research in the 1970s. In this system both local and imported fish species, a combination of five or six fish

species, are cultivated in a single pond. These species are so selected that they do not compete for food in

other words they have different food habits. As a result the food available in all the parts of the pond is

used. Fish used in this system include Catla and Silver Carp which are surface feeders, Rohu is a column

feeder and Mrigal and common carp which are bottom feeders. Other fish will also feed on the excreta of

the common carp and this helps contribute to the efficiency of the system which in optimal conditions will

produce 3,000-6,000 kg of fish per hectare per year.

Assumptions

Calculations have been done for 1 kani (0.4 acre or 0.16 hectare) of land for composite fish culture

activity. Costs of various inputs and outputs are based on information collected from fishery

department, villagers and market players.

Small farmers own 0.4 acre of land. Cost of earth work, including excavation, lead lift and compaction

(without mechanical roller), ordinary inlet and outlet, is available under MNREGS free of cost.

http://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Research

http://en.wikipedia.org/wiki/Indian_Council_of_Agricultural_Research

http://en.wikipedia.org/wiki/Catla

http://en.wikipedia.org/wiki/Silver_carp

http://en.wikipedia.org/wiki/Rohu

http://en.wikipedia.org/wiki/Mrigal

http://en.wikipedia.org/wiki/Common_carp


MART, Noida 77

Initial stocking of 6250 fingerlings includes Catla (25%), S. Carp (10%), Rohu (30%), Mrigal (15%)

and C. Carpio (20%). For Catla cost is Rs 2000 per 1000 number and for others it is Rs 600 per 1000

number including transportation costs.

Fish price depends on the weight and variety of fish. Small fish sells at lower price than larger fish.

Sale price of fish is taken as Rs 100/kg

Table 29: Economics for fish culture


Price(Rs)

Total

Amount(Rs)

Income

Sale of fish kg 500 100 50000

Cost

Control of predators by repeated

netting

Lumpsum 1 500 500

Application of quick lime @

300kg/hectare

kg 48 12 576

Application of soil pro-biotic (V5) @

100gm/month in 10 installment

kg 1 950 950

Basal manuaring

Mustard oil cake @ 100kg/ha 24 20 480

Raw cow dung @ 12500kg/ha kg 2000 0.25 500

Stocking of fingerlings

Initial stocking @ 6250 number/ha (6-

7cm)

Number 1000 0.95 950

Periodical stocking @ 4000 number/ha Number 640 0.95 608

Monthly application of manure

Raw cow dung @ 1000kg/ha/month for

8 months

kg 1280 0.25 320

MOC @ 31.25 kg/ha for 8 months(5kg) kg 40 20 800

Additional liming @ 200 kg/ha for two

times

64 12 768

Artificial feeding with balance feed (15

days every month for 10 months)

Dust feed for first 6 months kg 150 18 2700

Pelleted feed for last 4 months kg 221 22 4862

Medicine etc. for Prophylactic measures Bottle 2 150 300

Misc(procurement of plankton net and

charges for net)

Lump sum 1 800 800

Cost of harvesting manday 12 100 1200

Marketing expenses (commission by

agents)

commission 50000 0.06 3840


Net Income 30686


MART, Noida 78

Depreciation 4452


Interest (12%) 1% 62327 623

Net profit 25611

ROI 41.09%


Fixed capital Quantity Unit

Price(Rs)

Total

Amount(Rs)

Life

(year)

Depreciation

Turfing of embankment

with grass slabs/blocks B35

1 2,012 2,012 8 252

Oxygenator 1 40,000 40,000 10 4000



Working capital 19314



Sensitivity analysis for fish culture

Parameters Unit Change in unit or

cost

Profit before

interest

What if selling price falls by 20% Rs/kg 80 16234.5


What if business volume goes down by 20% Kg 400 16234.5

What if selling price goes up by 20% Rs/kg 120 36234.5


What if business volume goes up by 20% Kg 600 36234


4.5.6.3

Table 30: Fish culture possibilities and their economics

Input

cost


income

RoI

1. Composite fish culture 19314 500 kg 100 50000 25611 41


MART, Noida 79

2. Fish culture with multiple

stocking

23960 660 kg 100 66000 36918 55

3. Pig cum pisciculture 30446 Fish – 700kg

Pigmeat- 100

100

100

70000

10000

44367 60

4. Duck cum pisciculture with

multiple stocking

34126 Fish – 700kg

Egg- 1600

Duckmeat- 32

100

3

100

70000

4800

3200

28650 37

5. Polyculture of prawn 31522 Fish-450kg

Prawn-100

100

250

45000

25000

23280 31

6. Intensive fish culture with

multiple stocking

40111 Fish- 1140kg 100 114000 58606 71

Source: Fishery department data and field survey

Note: Net income is calculated after deducting input cost, depreciation and interest cost from gross

income.

4.5.6.3 Implementation plan for fish culture promotion

Key steps to be

followed



Cluster selection Select the right cluster in both project districts for initiating fish culture

promotion.


Social mobilization

and institution

building

Sensitize fish farmers about the potential of fish culture based on the findings

of value chain analysis described earlier and its impact on their livelihood.

Share various possibilities of fish culture, its cost-benefit analysis, and assess

their interest level to take the activity.

Identify the members/groups interested to take up fish culture as a unit.


activity. Based on the results, add more members. List out members

separately who are already doing the activity and want to either expand or

strengthen it.



Preparation of

business plan

Prepare a proper business plan for initiating fish culture in consultation with

the community, sourcing of inputs, linkages with market players, production

practices and technology to be used, and government schemes to be availed.

Capacity building Leadership training for groups members– functions and responsibility to

interact with external players

Impart business and marketing skill training (costing, pricing, accounting,



Technical training on better practices, exposure visits to nearby model


MART, Noida 80

aquaculture panchayats and outside states as well.

Identify suitable government and private agencies that can provide need

based technical and business training at the community level. Identify local

level best practitioners.


Backward linkages Link with NREGS scheme for excavation of pond and sourcing inputs under

the scheme.

Procure raw materials, machines and equipments collectively in bulk at lower

cost

List out major inputs suppliers for ensuring quality of inputs

Systematize farmer training management

Establish finance support for fish culture on unit cost basis.


Develop clarity of roles, specialization and continuous skill improvement

Set standards in quality control in production to achieve efficiency, higher

productivity and lower costs.


Develop MIS and multidimensional intervention opportunity.

Market access Identify suitable and multiple markets.

Prepare list of market players.

Training in marketing to draw better price for the produce.

Clarify on funds rotation and profit sharing among members in case of group

activity.

Develop systems and collaborations for more employment


Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate units from time

to time to find out gaps, suggest corrective steps and ensure delivery of

appropriate extension services.

Strengthening

Institution


initiative, if required.





Provide handholding and technical support to secondary institutions


achieves scale it would be required to source inputs directly from outside the

state).


MART, Noida 81

4.6 Pineapple cultivation

4.6.1 Background

Pineapple is a tropical fruit. Rich in Vitamin C, other

vitamins and fibre, the fruit is known for its high

nutrient and curative value. Its Bromelin content

stimulates digestion and the healthy working of small

intestine and kidneys through regulation of colonic flora

and detoxification. It is also known to heal haemorrhoid,

prevents and corrects constipation, cold, infections of

mouth, throat, and lungs.. Cooked peel cleans blood and

alleviates swellings. Juice helps to cure cystitis and

fevers. Pineapple contains 81.2 to 86.2% water, and 13-

19% solids, of which sucrose, glucose and fructose are

the main components. Fresh pineapple contains

minerals like calcium, iron, chlorine, potassium,

phosphorus and sodium (source: www.fao.org).

The total annual world pineapple production is

estimated at 14.6 million tones. India is the fifth largest producer of pineapple with an annual output of

about 1.2 million tones. Other leading producers are Thailand, Phillipines, Brazil, China, Nizeria, Mexico,

Indonesia, Colombia and USA. The area under pineapple cultivation in India increased by 35% from 57

thousand ha in 1991-92 to 77 thousand ha in 2001-01 whereas the production increased by 54% from 8

lakh tones to 12 lakh tones. The trend in export of fresh pineapple from India has increased considerably

from 138 tonnes in 1999-2000 to 837 tonnes in 2001-02. U.A.E, Saudi Arabia, Oman, Nepal are some of

the important countries importing pineapple from India. About 70% of the produce was exported during

2000-01. The consumption pattern in India is different from the world pattern. Whereas, about 97% of

the world output is utilized by processing industry in India only 10% production is absorbed by the

processing industry and remaining 90% is consumed in the raw form.

Tripura produces a variety of fruits throughout the year. A total of 5.07 lakh MT of fruits are produced

every year. There has been 14% increase in fruit production over last seven years. Tripura is one of the

largest pineapple growing states in the country. The state is famous for the ‘Queen’ variety of pineapple

having high sugar content. Two varieties grown in the state are ‘Queen’ and ‘Kew’. Queen has golden

yellow colour. As per the state horticulture department, in year 2008-09 pineapple was grown over 6338

hectares, which yielded 110,487 MT of the fruit or productivity of 17.44 MT/ha. The average weight of

‘Queen’ and ‘Kew’ are 800 gm and 1500 gm respectively. Of this, nearly 50,000 MT is surplus that needs

to be processed and marketed to ensure better income to the farmers. Many cottage scale units in the state

are involved in its processing, but they have very capacities. As per horticulture department, pineapple

processing unit set up in 1987 by NERAMAC could use pineapple only 4% and could reach 6.25% of its

total installed capacity. Most private units are also running at 30-35% capacity utilization.


MART, Noida 82

Pineapple is highly perishable food-crop; even in cold-storage it lasts for only 28 days. In the absence of

proper post harvest management practices, nearly 30% of it gets wasted – amounting to loss of nearly Rs

400 crores every year. To meet the growing demand of making pineapple available throughout the year,

the new staggering method described later has been tested and proven in Tripura’s Horticulture Research

Complex in Nagricherra area. Its awareness and adoption is still low among the farmers and need to be

promoted. The labourers, who were usually poorly paid and had employment for only three months in a

year, are also happy as they now get work round the year in the orchards.

A memorandum of understanding was signed between the the Government of Tripura and Agro

Processing and Export Development Agency (APEDA) on 01 February 2004 for the formation of the AEZ

for pineapples in the state. The Industries department is the nodal office in the state for implementation

of AEZ. Kumarghat block in North district has been identified for promoting organic pineapple. So far,

not much has been done on ground, but it is believed that it would give boost to pineapple industry in the

state.

4.6.2 Feasibility of Pineapple cultivation


The agro-climatic conditions are suitable for pineapple cultivation in the state. ‘Queen’ and ‘Kew’ are

two varieties grown; ‘Queen’ is popular for fresh consumption, while ‘Kew’ is better for canning.

Farmers in the state have basic skills for pineapple cultivation which can be further enhanced.

There are seven to eight cold stores with 5,000 MT capacity in the state, and the government plans to

facilitate setting up more cold stores to ensure easy accessibility to farmers.

Government support is available in terms inputs at subsidized rates, exposure visits, trainings and

extension services.

There are several government sector and private sector run processing units in the state with a

combing capacity of nearly 9000MT.

Market feasibility

Silchar (Assam) and Bangladesh are huge markets for pineapple. Once the Tripura-

Bangladesh corridor opens up, the distance between West Bengal and other north-east states will

drastically reduce bringing down the transportation cost. This is expected to offer huge boost to the

pineapple cultivation.

Tripura has well organized market structure with two wholesale markets at Agartala (Maharajganj

and Batala) and sub-division markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar,

Udaipur, and also 474 village level primary markets, where farmers sell pineapple directly to local

consumers.

There are several processing units in the state. Poor farmers can be linked with processing units.


The cost of investment is Rs 40,936 per 0.4 acre (1 kani), which is affordable for a small farmer. The

net income per unit is around Rs 64,664 with 147% return on investment.

Pineapple cultivation gives higher income per unit compared to cereal crops .


MART, Noida 83

Cultivation does not require irrigation and fertilizers. Therefore, recurring expenditures are low and

affordable to the poor.

A pineapple plant gives fruit for at least 20 years.


Pineapple cultivation can be done throughout the state. Major clusters are Kumaghat, Bishalgarh,

Melaghar, Boxanagar, Bishramganj, Mohanppur, and Manu.


Pineapple is usually consumed fully ripened as juice, slices or dessert at breakfast. Utilization of by

products from pineapple culture, canning and juice extraction can be encouraged for feed production.

Leaves can be used in three forms: fresh, dried and in silage.

4.6.5 Pineapple chain value chain

4.6.5.1 Figure 7: Value chain Map of Pineapple


Wholesalers (Agartala,

Sub-divisions )

Retailers (Agartala/Sub

division)

Consumers

Processing units in the state

Wholesaler/Retailer of processed products

Consumers (local and export)

Consumers

Wholesalers (state and outside)

Retailers (state and outside)

Retailers

(Agartala/Subdivisi

on



Rs 8-10/piece

15-25/piece

Rs 3-5/piece

Traders (state and outside)


MART, Noida 84

The state is a net exporter of pineapple; it is exported to Assam and Bangladesh through direct linkage

between farmers and trade channel. In the North district, the traders come from Silchar (Assam) and

villagers bordering Bangladesh sell pineapple illegally along the long porous border.

Processed pineapple as juice, jam, squash and slice is exported within India and South Africa and

European countries such as Italy.

Pineapple is harvested and sold during June to August every year. Majority of the local population

consumes pineapple. Agartala with a population 1,89,327 as per 2001 census (3.7 lakh after municipal

expansion in 2004) is a huge market for pineapple consumption.

Producers get only 20-30% of the value paid by the consumers; the remaining goes to various channel

partners.

There are 474 village level primary markets in the state where farmers sell pineapple directly to

consumers.



The main inputs for pineapple cultivation are planting materials, chemical fertilizers such as urea,

enzymes, MOP and organic manure such as FYM, vermi-compost and bio fertilizers, barbed wire and

bamboo for fencing. All inputs are available in the state. Pineapple saplings and fertilizers are available

from the nearby market and also from the government office at block office. Inputs suppliers are located

at sub division level and at Agartala wholesale markets.

4.6.5.2.2 Farmers

Government agency categorises farmers on the basis of their land holding as marginal farmer, small

farmer, medium and big farmer. It has been observed that farming and marketing practices adopted by a

farmer varies within the same category and also with other categories based on their entrepreneurship

attitude, skills adoption and finance availability. The price and profitability achieved depends on market

information, transportation facility, and linkage with market players. The following table describes the

farming and marketing practices observed among small and marginal farmers.

Table 31: Pineapple farming practice

Farmer 1 Farmer 2 Farmer 3

District West North West


Land used for pineapple 0.4 acre 0.4 acre 4.8 acre

Number of planting material

used

3000 5000 55,000

Adopting new staggering

production technique

No No Yes

Use of fertiliser No No Yes

Use of manure (cow dung) No No Yes


MART, Noida 85

Use of irrigation No No Yes

Fencing done Yes No Yes

Price per piece (Rs) 6 5 8

Market Takes produce

himself to town

market

Takes produce

himself to town

market

Town trader come to

his village




Farmers procure most farm inputs from nearby markets and government stores: seeds and pesticides

from nearby open markets, fertilisers from government department, cow dung is available within the

villages, However, farmers do have problems in sourcing chemical fertilisers, which are in short supply

and costs up to 1.5 to 2 times higher than the market rate. Farmers purchase inputs individually in cash.

For irrigation water is drawn from rivers and ponds using lift irrigation Pump sets used are either hired or

purchased.


Two varieties of pineapple viz., Queen and Kew are grown in Tripura, but the growers are not aware of the

variety they grow. Pineapple is grown in slightly sloppy land to avoid water stagnation and therefore plain

lands are not suitable for its cultivation. Once saplings are planted they give fruits for about 20 years.

New farmers prepare the land, clear the weeds and plant the saplings. Planting requires digging of small

holes. Farmers plant 3000 and 3500 saplings in o.4 acre (1 kani) of land. Marginal farmers generally do

not irrigate pineapple plantation and don’t apply fertilizers and pesticides. Field is cleared of weeds two

times in a year. Farmers take one crop a year during June to August.

Small progressive farmers have started using a new staggering technique that gives two harvests in a year

thus making pineapple available during off seasons, when prices are high, bringing them better income.

This reduces market glut and helps farmers to harvest the fruit according to their requirement throughout

the year. In this method farmers use ethel hormone and sodium carbonate along with two per cent urea.

In 50 liters of water urea and vitamin solution is prepared and poured over the saplings after planting

them. However, the adoption this and other like techniques is low among tribal cultivators. On the other

hand, the traditional practices don’t provide sufficient income due to lack of information and low

productivity. Therefore, tribal cultivators are shifting to tea gardens.

Pineapple, some farmers feel, is a risky business without adequate cold storage. Cold storage being at a

distant place involves cost of transportation. A growing reluctance is seen among pineapple growers to

continue its cultivation since the price of pineapple fall to to Rs 0.50 apiece in times of good harvest.

Farmers approach fellow farmers and officials of Horticulture Department at the block office to take

technical advice.


MART, Noida 86


Farmers sell pineapples in local haats, town markets and to traders coming from Silchar and Karimganj in

Assam. Town markets are available within 20 km distance from the villages. Both local markets and the

neighbouring state markets have pineapple demand, but its short shelf life (3 to 4 days) entails that it

should be marketed immediately after the harvest. All transactions are generally in cash.

Pineapples go to Bangladesh through legal and illegal channels. However, few farmers export pineapples

to Bangladesh. Dabur used to procure pineapples from Tripura, but stopped it about a year back due to

prolonged blockade of NH 34 passing through Darjeeling district of West Bengal, informed Mr

Thanglunga Darlong of Darchowai village in Kumarghat block of North Tripura district.


Transporters are located within the state at Agartala and at sub divisions. Transportation charge from

Bishalgarh is Re. 1.00 apiece. The transportation charges of Kalender (HYV) collected from Kumarghat

block cost Rs. 2 apiece.


Several wholesalers are located in Agartala market. Some of them are in this business for over 25 years.

They collect pineapple from Bairagi Bazar, Bishramganj under Bishalgarh sub-division. Wholesalers

collect Kalender (HYV) variety from Kumarghat Block. Transportation charge from Bishalgarh is Rs 1 per

piece. Transportation cost from Kumarghat Rs 2 per piece.

4.6.5.2.5 Retailers

There are several retail markets spread throughout the state. Each retail market has 10-15 retailers in

Agartala. Retailers procure pineapple from wholesalers in the afternoon from 12 noon to 4pm. At a time

they bring 50 to 100 pieces. Transportation charge for carrying 50 to 100 pieces in the municipal area is

Rs. 20 by rickshaw and is borne by retailers. Sometimes retailers procure pineapple directly from the

farmers.

4.6.5.2.6 Processing units

There are both government and private run processing units in the state; Neramac based at Nalkata in

North Tripura District is a government under taking unit. Piyush Agro Tech Food Production Unit,

Panguin Agro International Limited and Paras are private run processing units in and around Agartala.

Panguin make slice only and supply to Dabur India Limited in 1 kg pack size. Paras make juice squash and

supply outside and within the state. Panguin’s daily requirement is 4000 pineapples per day and Paras

require 2000 pieces per day. Poor farmers can collectively supply pineapple to these processing units.


MART, Noida 87

4.6.5.2.7 Consumers

Pineapple consumers are available throughout the state and they buy it from the retailers in the weekly

markets in villages, retails markets in Agartala and at sub-division level. Majority of people consume

pineapple as fresh fruit in the state. Processed pineapple in the form of jam, juice, squash and slice is

consumed within the state and is exported outside the state. The following table reflects the final prices

paid by the consumers as it passes through wholesalers and retailers.

Table 32: Wholesale and retail prices for pineapple varities

Pineapple variety Farmer to

wholesaler

Wholesaler to

retailer

Retailer to

Consumer

HYV Kalender

(Kumarghat)

Rs 4 to Rs 5 Rs 8 to Rs 10 Rs 15 to Rs 25

Local Variety Rs 7 to Rs 8 Rs 8 to Rs 10 Rs 10 to Rs 15


Table 33: Unit prices for processed pineapple products

Processed pineapple Unit size Unit Price (Rs)

Jam 100 gm bottle

500 gm bottle

15

65

Juice 100 ml bottle

700 ml bottle

12

45

Squash 700 ml bottle 65

Slice 850 gm can 90

Source: Piyush Agro Tech Food Production unit, Agartala


The table 34 illustrates constraints faced by farmers for key livelihood factors and critical interventions

points to overcome constraints.

Table 34: Constraints faced by pineapple farmers and interventions points

Factor Constraints faced by small farmers Critical intervention points

Input sourcing Availability of fertilizers is low when

the demand is high as a result prices

go up by 50-200% in peak demand

times.

Traders indulge in hoarding as the

state does not have its own sources of

fertilizers and pesticides supply.

Organise the farmers to procure

inputs collectively to negotiate better

prices and reduce overhead costs. The

farmers can procure inputs well in



and sub division markets and

establish tie ups with them for timey

procurement of inputs.

Production Flowering is low. Harvesting is done • Making available good planting


MART, Noida 88

practices and

technology

used

in June to August and field remains

unutilized for rest of the year.

Farmers are not aware of new

improved techniques, such as

staggering method, that improve

productivity significantly.

In some villages pump sets are not

available and farmers have to hire

them from other villagers @ Rs 80

per hour.



material and nursery promotion.

Staggering method helps take two

crops in a year and it costs Rs 200 per

1000 pieces.

Establish linkage with local banks and

government schemes such as SGSY to

help famers in accessing loan for



Create village level cadre of technical

persons to provide paid technical


Regular training and exposure visits to

best practitioners in the local area can

help the poor farmers.

Access to

support

services

provided by

government

and private

agencies

Inputs from the government


and the quality of inputs procured

from private players is doubtful.

• Due to lack of sufficient cold storage

facility in the state, farmers sell the

produce immediately after the harvest

at throw away prices.

The labour cost is high at Rs 150 per

day due to availability of works under

NREGA at Rs 100 per day.



to help famers link with need based

government schemes and private

services.

Develop village level cadres to help

extend technical services to the

farmers.

Set up new cold stores after feasibility

study.


tools that work faster and save cost.

Access to

finance

Bank loan procedures require

documentation of land ownership

papers, which most farmers do not

have. This adversely affects their

access to required credit.


loan, but their loan products don’t

match the farmers expectations.

Organize poor famers in SHGs to link





them to develop loan product for

Pineapple cultivation based on its

economics.

Market access • After the barbed fencing between

India and Bangladesh 2-3 years back,

illegal trading of pineapple has come

down considerably along the porous

border.

Farmers sell individually to the


There is a need to promote legal trade

between Tripura and Bangladesh to

cater to the demand there.

Introduction of new staggering

method helps farmer to manage

production as per market requirement

to check market glut.


MART, Noida 89

overhead marketing costs.

Due to declining profits from

pineapple cultivation, the farmers are

shifting to tea and rubber plantations.


farmers to sell collectively and directly

to higher order markets, and

pineapple processing units in the state

for better price realization.

Cooperation

among farmers

and institutions

building

The farmers have low affinity for

collective inputs sourcing and crop

selling resulting in high operating

costs.

Guide farmers for collective sourcing

of inputs and marketing to reduce

operational costs.

Govt. policies

and external

ecosystem

Blockage of roads and civil unrest

risks raising cost of inputs and

market failure rendering pineapple





markets.


Project can promote pineapple culture to be taken up by an individual family. Individual farmer will

do the production but sourcing of inputs and marketing can be done collectively.




4.6.6.1 Economics of pineapple cultivation

Calculations are done for pineapple cultivation over 1 kani (0.4 acre). Costs of various inputs and

outputs are based on information collected from villagers, market players and agriculture

department.

The rate of interest paid by the farmers is 1% per month. It is assumed to be taken for three months.

The commission to agent is 7%.

The wholesale price of pineapple is taken as Rs 6 per piece.

Table 35: Economics of pineapple cultivation


Price(Rs)

Total

Amount(Rs)

Income

Sale of pineapple Number 17600 6 105600

Cost

Land Preparation and planting

Jungle clearance and removal of weeds Number 8 100 800

Layout(90cmX60cmX30cm in double

row method

Number 2 100 200

Curing of suckers/planting materials Number 8 100 800

Planting of suckers Number 20 100 2000


MART, Noida 90

Operational cost during the year

planting

Earthing up top up dressing and

mulching twice etc.

Number 10 100 1000

Weeding, cleaning of inter space etc. Number 8 100 800

Plant protection as required Number 2 100 200

Cost of materials

Planting materials (suckers

including carrying)

Number 17600 0.75 13200

FYM/Vermi compost/bio fertilizer MT 4 1000 4000

Urea @ 10 gm per plant for top dress Kg 176 6 1056

R.P. @ 10gm per plant Kg 176 6 1056

M.O.P @ 10gm per plant Kg 176 7 1232

Wire fencing/bamboo fencing Lump sum 4500 4500

PPC Lump sum 1000 1000

Signboard etc. Lump sum 2000 2000

Marketing expenses Commission 0.07 7392

Transportation to nearby market Trip 500 500

Misc Lump sum 1000 1000


Income 64664

Depreciation 400


Interest (12%) 42,936 1288.08

Net profit 62976

ROI 146.67%




(Rs)

Life

(in year)

Depreciation

(Rs)

Agriculture implements 1 2,000 5 400


Working capital

Working capital requirement 40,936



MART, Noida 91

Sensitivity analysis for pineapple cultivation

Parameters Unit Impact on

unit

Profit before

interest

What if selling price falls by 20% Rs/kg 4.8 169864


What if business volume goes down by 20% Number 35200 169864

What if selling price goes up by 20% Rs/kg 7.2 275464


What if business volume goes up by 20% Number 52800 275464

4.6.6.2 Comparative analysis of alternative possibilities

The table 36 illustrates input costs, net income and return on investment for pineapple plantation and

floriculture (tuberose) plantation.

Table 36: Economics of cash crop plantation

Input

cost


income

RoI

(%)

1. Pineapple plantation 40936 17600 6 64664 62976 147

2. Floriculture(Tuberose) 33155 3200 25 46844 45160 125


Note: Net income is calculated after deducting input cost, depreciation and interest cost from gross

income.


Pineapple can be processed into juice during the production season. However, setting up such processing

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

and ensured market linkages with bulk buyers which poor lack to sustain such processing units. The

demand at the village level would be low therefore such units could be strategically located to target

customers passing through the national highway or at the block and divisional market. Tie up could also

be established with few big private processing units in the state. It is suggested that for first couple of year

poor (both individuals and groups) should encouraged for pineapple production, productivity

enhancement and market linkages. After couple of years project can identify few individuals/groups with

entrepreneurial skills for setting up few processing units. Project staff with marketing skill could be

involved for conducting the detail feasibility study before setting up such units.


MART, Noida 92

4.6.6.4 Implementation Plan for promotion of Pineapple cultivation

Key steps to be

followed



Cluster

selection

Select the right cluster in project districts for initiating pineapple promotion based

on technical feasibility.


Social

mobilization

and institution

building

Share various possibilities of pineapple cultivation, its cost benefit analysis, and

assess community interest level to take up the activity.

Identify the members/groups interested in taking up pineapple cultivation as a

new unit. Initially only a limited number of groups should be encouraged to start

the activity. Based on the results of pilots add more members. List out members

separately who are already doing the activity and want to either expand or

strengthen the activity.

Initiate participatory discussion to arrive at consensus on the roles and


Preparation of

business plan

Prepare a proper business plan for pineapple cultivation in consultation with the

community detailing the economics of the activity, sourcing of inputs, linkages

with market players, production practices and technology to be used, and

government schemes to be availed.

Capacity

building

Leadership training for group members – functions and responsibility to interact

with external players.

Training in business and marketing skills (costing, pricing, accounting, sales and

marketing, negotiation, market analysis) to members using participatory

techniques.

Technical training on better practices, exposure visits to nearby best practitioners

and outside the states as well.

Identify suitable government and private agencies that can provide need-based

technical and business training at the community level. Identify local level best

practitioners.

Phase II - Launching of the unit (6 months)

Backward

linkages

Counsel farmers to procure raw materials collectively in bulk to reduce operational

costs.


availability.

Systematize training management.

Establish finance support for pineapple cultivation on unit cost basis.


Clarity of roles, specialization and continuous skill improvement

Bring quality control in production to achieve efficiency, higher productivity at

lower costs.


MART, Noida 93

Better record keeping and financial management.


Market access Identify suitable and multiple markets and prepare list of market players with their

contact details.

Engage in bargaining, marketing of produce and realize better price.

Clarify on profit sharing and funds rotation among members in case of group

activity.

Build System for collaborations and employment


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.

Strengthening

Institution


initiative.



Create village level cadres to extend technical and marketing inputs to community

at village level.


Legal aspects Compliance to legal implications for excise, sales and VAT (once activity achieves

scale it would be required to source inputs directly from outside the state).


MART, Noida 94

4.7 Pulses cultivation Value Chain

4.7.1 Background

Pulses are rich in protein and their low fat/high

complex carbohydrate content help in weight control,

reduction of plasma cholesterol for cardiovascular

health, low glycemic index prevent/control diabetes,

colonic bacterial fermentation help in bowel health and

phytochemical content prevent cancer. Pulse crops

increase soil fertility through nitrogen fixation:

approximately 40 kg of nitrogen per hectare.

Agronomic benefits for the succeeding crop are better

yield and crop quality. In case of wheat crop it also

improves its protein content.

India is the world’s largest pulse producer accounting for 27-28 per cent of global pulse production and is

also the largest consumer. India harvest between 12-15 million tones of pulses each year but the yield has

been pretty much static for the last 30 years averaging between 250-300 kg/acre. Pulses grew strongly

between 2004 and 2009 and enjoyed growth of 9% in 2009 resulting from strong demand from rising

population. During the year 2006-07, India imported 1.8 million tones of various pulses, especially from

countries like China, Canada and Australia.

As per the state agriculture department the expected food grain production in Tripura is 6.48 lakh tons

against the requirement of 8.22 akh tons. Some of the reasons identified for this gap include inadequate

adoption of improved technologies, uneven adoption across the farm households, non-availability of

adequate quantity of nutrients, inadequate credit flow, and lack of sufficient extension services.

Government has decided to focus on area expansion and productivity enhancement to bridge the gap in

food grain production. Main pulses grown in the state are arhar, gram, pea, lentil, black gram and

moong. Currently 7385 hectares is under pulses cultivation in the state; the target is to increase the area

12500 hectares in 2010-11 for higher productivity. Please refer the table below.

Table 37: Area and productivity for pulse cultivation

District Normal area 2010-11 2011-12

North 1506 2195 2700

West 2342 3140 4325

State total 7385 9500 12500

District Normal productivity 2010-11 2011-12

North 626 800 900

West 649 800 900

State total 651 800 900

Source: Perspective plan for agriculture: 2010-11 and 2011-12, Tripura


MART, Noida 95

The state’s proposed productivity enhancement strategies include introduction of hybrid varieties /HYV,

100% seed treatment, varietal replacement, use of improved seed, application of lime to check soil acidity,

appilciation of micro nutrients, INM/IPM, improved agriculture credit availability and irrigation facility

through deep tube wells. This will be achieved through proper training of farmers and provision of

extension services.

4.7.2 Feasibility of pulses cultivation


The agro climatic conditions are suitable for pulses cultivation in the state. A wide range of pulses

such as arhar, pea, lentil, black gram, gram, and moong can be grown in the state.

Farmers in the state have the basic skills for pulses cultivation.

Government support is available in terms of subsidy on farm inputs, exposure and trainings and

extension services.

Market feasibility

The demand for pulses in the state is higher than the current production level. Therefore, a part of this

demand, especially in Agartala and towns area, is met from Siliguri, UP and Delhi.

The state has organized market structure: two wholesale markets at Agartala (Maharajganj and

Bartala) and sub divisions markets at Bishalgarh, Sonamura, Dharamanagar, Kailashahar, Udaipur,

and 474 village level primary markets, where farmers can sell pulses directly to local consumers.

As per market sources, the last few years have recorded average of 10% per annum increase in pulse

demand in Agartala wholesale markets.

Economical feasibility

The cost of investment for pulses production is Rs 7262 per 0.4 acre (1 kani) which is affordable for a

small farmer. The overall income is 14,400 with 73% return on investment.

Pulses provide higher income per unit area compared to cereals crops.


Pulses are grown throughout the state. Production is higher in plains compared to hilly area. The major

pulses growing areas in the state are Bagafa, Matabari, Jirania, Salema, Manu, Bishalgarh, Kumarghat

and Gournagar.


Pulses are used as daily dietry requirement of the population and by products are used as fodder for

livestock.


MART, Noida 96

4.7.5 Pulse cultivation value chain

4.7.5.1 Figure 8:V value chain Map of Pulses

* The rates given are for masoor pulse from Uttar Pradesh (UP). And ‘q’ stands for quintal.

The state is a net importer of pulses; around 25 MT of pulses per day at Agartala wholesale markets

come from Uttar Pradesh, Delhi and Siliguri. For North and Dhalai district demand is met from

Silchar and Dharamnagar.

Agartala with a population 1,89,327 as per 2001 census (3.7 lakh after municipal expansion in 2004)

is a huge market for pulses consumption and depends on pulses coming from both within and outside

the state.

Producers get around 50% of the value paid by the final consumers; rest is taken by various channel

partners.

There are 15 subdivision markets and 474 village level primary markets in the state where farmers sell

local pulses directly to consumers.

From Agartala wholesale markets pulses go to two districts i.e. South Tripura and West Tripura. In

the remaining two districts of Dhalai and North pulses come from Dharmanager wholesale market

(North Tripura) and Silchar (Assam) wholesale market.

Wholesale markets Siliguri/UP/Delhi



Wholesalers

(Agartala)


Consumers Consumers

Wholesalers Subdivision/district

Retailers

Subdivision/district


Input Suppliers Seeds, fertilizers, agriculture implements, equipment, pesticides/weedicides

Rs 4400-4800/q Villager level traders

Rs 5100-5375/q

Rs 5600-6500/q

Rs 2200-2800/q*


MART, Noida 97



The main inputs required for pulses cultivation are seeds, fertilizers, pesticides, and agri implements. The

suppliers (government and private players) of these inputs are located at Agartala wholesale and district,

sub division wholesale markets. Water for irrigation is available from ponds and rivers. All inputs are

available in the state and these are procured by wholesalers from other states. Agriculture department

makes available high yield certified seeds, power tillers and fertilizers to farmers at subsidized rates.

4.7.5.2.2 Farmers

Farmers can broadly be categorized in two: subsistence farmer and progressive farmer. Subsistence

farmer follows traditional practices while progressive farmer follows latest practices promoted by the

agriculture department (refer table). Progressive farmer gets higher yield and better price by selling the

produce in the higher order (divisional) market.

Table 38: Comparative practices of subsistence and progressive farmers

Subsistence farmer Progressive farmer

Location West District North District

Village Tribal Non-tribal

Landholding 1.2 acre 1.2 acre

Land used for pulse cultivation 0.2 acre 0.4 acre

Engagement in activity September-November November –February

Sourcing of seed Local retailer Government store

Use of organic manure No Yes

Application of chemical fertilizers No Yes

Application of pesticides No Yes

Labour hired for Weeding, Harvesting Sowing, weeding, harvesting

Time spent per day on average

basis

Nil 2 hours

Selling to Village trader coming to village Village Trader and Town

Trader

Production (kg) 80 300

Price received last year Rs 50/kg Rs 55/kg

Issues and needs Not sure whether soil is

appropriate or not

Needs training on latest

package of practices and

technologies

High cost of inputs and

their timely availability

Needs exposure and part of

collective to source inputs

and sell produce


MART, Noida 98


Farmers procure inputs from the government stores and private wholesalers and retailers. They however

face problems in procuring chemical fertilizers from the government stores due to its persistent short

supply. This pushes their prices by 1.5 to 2 times in open market as market players indulge into hoarding.

Cow dung is available within the villages, which farmers collect individually just before the production

season starts. Farmers buy inputs in cash. River and ponds are sources of lift irrigation. They do it by

using their own pump sets or by hiring them.


Farmers grow a variety of pulses such as arhar, pea, lentil, balckgram, and gram for both rabi and kharif

season. Small farmers cultivate them over small portions of land of 0.1 acre to 1.2 acre. Land preparation

is done using power tillers and manually.

There is an increasing trend of power tiller use as it saves time and is affordable for small farmers. It is

used for land preparation that is normally done two to three times and costs Rs 150 per hour. In the kharif

season pulses are grown in around 60% area and in the rabi season in 40% area. Lift irrigation is used

twice: at the time of land preparation and during production phase. Farmers use both chemical fertilizers

and organic manure (cow dung and mustard oil cake) at the time of land preparation. Chemical fertilizers

used include super phosphate, di-ammonium phosphate, muriate of potash and urea. Urea is used in split

doses whereas other fertilizers are used once when the land is prepared. The yield varies from farmer to

farmer due to low adoption of package of practices suggested in government training and exposure

programmes.


Farmers sell large quantities of pulses to wholesalers in subdivision and Agartala wholesale markets. A

small percentage of vegetables are sold to local traders who visit villages and also in local weekly markets

(haats). Transactions are mainly in cash.


There are 22 wholesalers in Maharajganj Market. Daily 25 MT of pulses come from UP, Delhi and Siliguri

to Agartala by truck. It comes in 25 kg to 100kg pack size. From wholesale market pulses go to west and

south Tripura districts and part of Dhalai District. North District and part Dhalai District pulses come

from Dharmanagar whole and Silchar (Assam) wholesale market.

2008 2009 2010

Pulses Volume per day 25 MT 28 MT 30 MT


MART, Noida 99

4.7.5.2.4 Retailers

Retailers procure pulses from wholesale market in the morning at 6am-7am and sell in retail market from

morning 7 am to 12 am and evening 5 pm to 9.30 pm. Durga Chowmuhani retail market has 15

municipality registered retailers. They pay the municipality one time charge of Rs. 28,000 and monthly

Rs. 250. A retailer buys 25 kg to 250 kg at a time. Transportation cost from wholesale market to retail

market in town area is Rs 10 per bag. Retailer pays Rs 6 per bag as labour cost to wholesaler towards

loading and unloading. Retailers sell pulses to consumer in cash and credit.


Transporters are located at Delhi and Guwahati. Pulses come in 6 wheeler truck containing 8 MT to 10

MT. From Delhi trucks first come to Guwahati where its contents are loaded in a local transport. Total

transportation cost from Delhi to Guwahati is Rs 180 to 200 per quintal and from Guwahati to Agartala it

is Rs 350 per quintal. From Siliguri to Agartala transportation cost is Rs. 550 to 600 per quintal and takes

around 6 days. Insurance charge per quintal is Rs 10. Total labour charges for loading and unloading is Rs

6 per bag and is borne by the retailers. Within the state local transportation cost is borne by the retailers.

Rickshaw, auto van, and mini truck are common modes of local trasportation. There are 125 to 150

labours in Maharajganj wholesale market.

4.7.5.2.6 Consumers

A large majority of population consumes pulses in the state. Consumers purchase pulses in retail from

weekly markets and grocery retailers in town area. Prices vary from pulse to pulse and place to place (

refer table 39).

Table 39: Wholesale and retail prices of pulses coming from various markets.

Name of State

Location

Prices at UP/Delhi/

Siliguri


(Maharajganj)

Retailer to Consumer

U.P (Masoor pulse

1. Bareilly

2. Baharaich

Rs 44 to 45 per kg

Rs 47 to 48 per kg

Rs 51 to 55

Rs 53.5 to 53.75

Rs 56 to 60 per kg

Rs 58 to 65 per kg

Delhi

Moong pulse

Rs 60 per kg

Rs 66 per kg

Rs 72 to 78 per kg

Siliguri

Matar pulse

Rs 37 to 40 per kg

Rs 42 to 45 per kg

Rs 52 to 60 per kg

Source: field survey at wholesale and retail market in Agartala


The table 40 below illustrates constraints faced by farmers for key livelihood factors and critical



MART, Noida 100

Table 40: Constraints faced by farmers and interventions points

Factor Constraints faced by small and

marginal farmers

Critical intervention points

Input sourcing • Often the quality of the seeds available

in the open market is not good. It

affects productivity.

Availability of fertilizers is low when

the demand is high as a result prices

go up by 50-200% in peak demand

times.

The state does not have own supply of

pesticides and fertilizers encouraging

hoarding by traders and high farm

input costs. Farmers travel to Agartala

and subdivision towns to source

various inputs resulting in higher

transportation cost.


and sub division markets and establish

tie ups with them for timey

procurement of inputs and also for

ensuring quality of inputs.




can procure inputs in bulk well in


Production

practices and

technology

used

Farmers are not sure

whether the land is suitable for pulse

cultivation or not as many are doing it

for the first time as part of agriculture

department initiative to promote

pulses cultivation in the state.

Pulses cultivation requires 4-5 months

which some farmers feel is more

compared to vegetable cultivation that

gives two to three crops in the same

period.




knowledge resulting in low yields.

Pulse cultivation should be promoted

after suitable technical assessment of

the soil with support of agriculture

department to suggest relevant

package of practices.

There is a need to organise awareness

camps and exposure visits for farmers

to successful practices within the state

to learn economic benefits of pulse

cultivation.






Access to

support

services

provided by

government

and private

agencies

Quality of inputs, especially seeds and

pesticides, procured from private

players is often doubtful.

Farmers who take one-time training

from agriculture department don’t get

the desired yield as they don’t adopt

practices fully.

Availability of work under NREGA at

Rs 100 per day has pushed labour

costs to as high as Rs 150 per day.



to help famers link with right private

players to access quality inputs and

need based government schemes.

Promote village level cadres to extend

technical services to farmers.


tools such as power tiller that work

faster and saves cost.


MART, Noida 101

Access to

finance

Availability of required credit on time

is an issue. Bank loan requires lot of

paper, which farmers mostly cannot

furnish as most farmers do not have

proper papers against their land.


loans but charge high interest rate.

Organise poor farmers in SHGs to link



Develop partnership with existing

MFIs and encourage them to develop

loan products for pulses cultivation

based on its unit cost.




Farmers get around 50% of value paid

by the final consumers.

Encourage farmers to sell collectively

and directly to higher order markets at

sub division towns and Agartala for

better price realization.

Cooperation

among

farmers and

institutions

building

There is low affinity among farmers for

collective action for sourcing of inputs

and sale of pulses resulting in higher

operating costs.

Farmers can take up pulse cultivation

activity individually however souring

of inputs and marketing can be

planned collectively.

Govt. policies

and external

ecosystem



market failure making pulses





markets.


Project can promote pulse cultivation to be taken up by an individual family. Individual farmer will do

the production but sourcing of inputs and marketing can be done collectively.




4.7.6.1 Economics of pulse cultivation

Calculations have been done for 1 kani (0.4 acre) of land for pulse cultivation activity. Cost of various

inputs and outputs are based on information collected from villagers, market players and agriculture

department.

The rate of interest paid by farmers is 1% per month. It is assumed to be taken for three months.

The wholesale price of black gram is Rs 60/kg.

Table 41: Economics for blackgram cultivation


Price(Rs)

Total Amount(Rs)

Income

Sale of blackgram Quintal 240 60 14400


MART, Noida 102

Cost



Seed cost kg 8 55 440

Use of fertiliser

MOP kg 5 6 30

Super Phosphate (SSP) kg 40 6 240

Urea kg 6 5.75 34.5

FYM kg 1600 0.33 528



Marketing expenses Commission 14400 0.07 1008




Total running cost 4494.75

Income 9905.25

Depreciation 340


Interest (12%) 3% 8,963 185.84

Net profit 9379

ROI 151.41%




(Rs)

Total amount

(Rs)

Life (in

year)

Depreciation

(Rs)


Miscellaneous 200 5 40



Total capital requirement 6195

Sensitivity analysis for black gram cultivation


or cost

Profit before

interest

What if selling price falls by 20% Rs/kg 48 6685.25


MART, Noida 103

What if costs go up by 20% Rs total 8715 8666

What if business volume goes down by 20% no. 192 6685.25

What if selling price goes up by 20% Rs/kg 72 12445.25

What if costs fall by 20% Rs total 5810 10464

What if business volume goes up by 20% no. 288 12455.25


The table 42 below illustrates input cost, market rate per kg, income, net income and return on

investment for various pulses grown by farmers.

Table 42: Economics of various pulses

Pulses Input

cost

Production(

kg)

Rate/kg Income Net

income

RoI(%)

Black gram 4495 240 60 14400 9379 151.41

Moong 4327 240 50 12000 7152 118.68

Lentil 3514 192 50 9600 5590 107.21

Pea 3973 240 50 12000 7517 132.51

Source: agriculture department data and field survey.

Note: Calculations are done for 0.4 acre of land. Net income is calculated after deducting input cost,

depreciation and interest cost from gross income.


Pulses can be processed by setting up pulse mill. However, setting up such processing units at the village

level would require high entrepreneurial skills, marketing and technical skills, and ensured market

linkages with bulk buyers which poor lack to sustain such processing units. The demand at the village

level would be low and marketing of products outside the village would require linkages with wholesalers

and retailers. It is, therefore, suggested that for first couple of years poor (both individuals and groups)

should encouraged for pulses production, productivity enhancement and market linkages. 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.

4.7.6.4 Implementation plan for pulse cultivation

Key steps to be

followed



Cluster selection Select the right cluster in both project districts for initiating pulse


MART, Noida 104

cultivation based on technical feasibility.


Social mobilization

and institution

building

Share various possibilities of pulses cultivation, its cost benefit analysis,

and assess community interest level to take up the activity.

Identify the members/groups interested to take up pulse cultivation as a

unit. Initially only a limited number of groups should be encouraged to

start the activity. Based on the results add more members. List out





Preparation of

business plan

Prepare a proper business plan for pulses cultivation in consultation with

the community detailing economics of the activity, sourcing of inputs,

linkages with market players, production practices, appropriate

technology providers, and government schemes to be availed.

Capacity building Leadership training for group members–functions and responsibility to

interact with external players.

Impart business and marketing training (costing, pricing, accounting,



Technical training on better practices, exposure visits to best practitioners

within and outside the state.

Identify suitable government and private agencies that can provide need-

based technical and business training at the community level. Identify

local level best practitioners as resource persons.


Backward linkages Counsel farmers to procure raw materials, machines and equipments

collectively in bulk to reduce operational costs.


availability.

Systematize farmer training management

Establish finance support for pulse cultivation.


Develop clarity of roles, specialization and continuous skill improvement

Set standards in quality control in production to achieve efficiency, higher

productivity and at lower costs.


Develop MIS and multidimensional intervention opportunity.

Market access Identify suitable and multiple markets

Prepare list of market players with their contact details.

Encourage farmers to do simple value addition such as sorting and grading

to get better prices.


MART, Noida 105

Training in marketing to draw better price for produce.

Clarify on funds rotation and profit sharing among members in case of

group activity.

Develop systems and collaborations for more employment


Monitoring and

evaluation

Set up regular follow up and monitoring system to evaluate units from

time to time to find out gaps, suggest corrective steps and ensure delivery

of appropriate extension services.

Strengthening

Institution

Facilitate secondary institution (producer group) to upscale and sustain

the initiative.






Legal aspects Compliance with legal implications for excise, sales and VAT (once activity

achieves scale it would be required to source inputs directly from outside

the state).


MART, Noida 106

Annexure 1: List of stakeholders met during the visit

S.N

o

Name Designation/Agency Contact details

1 Mr. A. K. Srivastava

and his team

Project Director, NERLP, Guwahati 0361-2331233

2 Sri Kumar Alok Commissioner cum Secretary, Rural

Development Department, Govt. of Tripura

3 Dr. D.Basu Joint Secretary , Department of Rural

Development, Govt. of Tripura

0381-2415584

4 Dr. Amarendra Singh Consulatnt, World Bank

5 Mr. Shanti Riyan Director, Fisheries, Govt. of Tripura, Nehru

Complex, Agartala

0381-2226294

09436542235

6 Ms. Soumya Gupta District Collector, North District

7 Mr. C.R.

Bandyopadhyay

Director, Horticulture Govt. of Tripura, Nehru

Complex, Agartala

0381-23247309

09402168209

8 Mr. R.K.Noatia Project Director, DRDA, Kailashar, North Tripura 09436182837

9 Mr. Ranjit Kar Project Director, DRDA, Old Secretariat Agartala,

West Tripura

09436518100

10 Ms. Marie Korner Socio Economist, Indo-German Cooperation

Project

09492168070

11 Prof. P.C. Sikligar Professor, NIRD 09707834701

12 Md. Selim Reza Chief Executive Officer, INBAR,

[email protected]

09436134425

0381-2397048

13 Ashim Kumar Das Assistant General Manager (Business

Development, Guwahati, [email protected]

9854028288

0361-6115556

14 Dr. Binay Singh Director, NIRD, North Eastern Regional Centre,

Guwahti , [email protected]

09435019953

0361-2304791

15 A.K. Lahiri (I.F.S retd) [email protected] 0983681507

16 S K Dalal Consultant, Retd. Additional Commissioner -

Crops, [email protected]

011-27190216(R)

17 Mr. Anukul Paul Areca nut wholesaler at Battala market

18 Mr. Biswanath Paul Areca nut retailer at Durga Chowmuhani Market

19 Mr. Harendra Das

President, Maharajganj, Wholesale Fish Market

Association

9436121049

20 Mr. Manindra Das Fish Wholesaler, Maharajganj Market

21 Mr. Dilip Paul Manager, Pijush Agro Tech. Food Production,

Agartala

M-9862203302

22 Mr. Prabhat Das

Pineapple wholesaler, Agartala

23 Sri Indu Bhusan Deb Pineapple Retailer, Durga Chowmuhani Retail

Market, Agartala

24 Mr. Rupak Majumder, Goat wholesaler, Maharajganj, Agartala

mailto:[email protected]

mailto:[email protected]


MART, Noida 107

25 Mr Jhantu Paul Goatery Retailer, Batala Retail Market

26 Sri Sukrai Debbarma Piggery Retailer, Lake Chowmuhani Retail

Market

27 Mr. Sadhu Banik Fish wholesaler, Batala market, Agartala 0381-2300667

28 Sri Bhakta Das Fish Retailer, Gole Chakkar Fish Market, Agartala

29 Mr. Babul Sarkar Secretary, Potato and Onion Wholesaler

Association, Maharajganj Bazar, Agartala

09436121054

30 Sri Parimal Saha Vegetable retailer, Battala Retail Market.

31 Mr Sentu Paul Potato retailer, Durga Chowmuhani Retail

Market

32 Mr. Sailen Debbarma Piggery wholesaler, Jirana Bazar, ADC area

33 Mr. Gouranga Paul Poultry wholesaler, Maharajganj Bazar, Agartala

34 Sri Gopal Ghosh Poultry retailer, Durga Chowmuhani Retail

Market

35 S.K. Dugar, Manager Bhuturia Brothers Ltd. Cold Storage 0381-2226227

36 Sri Kishore Saha Manager, Paul Road Ways 09436569071

37 Sri Rajib Banik secretary, Tripura Grocery whole /sale

association, Maharajganj Market

9436120565

38 Mr. Tulsi Bhusan Paul Pulse wholesaler, Maharajganj whole sale market 9436581599

39 Mr. Chanu Das Pulses retailer, Durga Chowmuhani Retail Market

40 Sri Hangshu Kumar

Saha

Vegetable, wholesaler cum commission agent,

Maharajganj Market, Agartala

09862081502

41 R.N. Chowdhury MD, Tripura Co-operation Milk Producer union

Ltd, Agartala

0381-2353524

42 Sri. Dilip Dey Milk retailer, Agartala

43 Sri Jhunu Deb Vegetable wholesaler cum commission agent,

Batala market

9862870590

44 Mukesh Thakkar AGM, NABARD

45 Dhiren Das Senior Executive, RGVN, Agartala 09863495482

46 Pijus Bonik Agro tech Food Processing Limited 09436122222

47 AK Chanda Joint Director Directorate of Stat. and Economics

48 Sujit Saha Sabji Wholesaler, Maharajganj, Agartala

49 Pinto Saha Potato Wholesaler, Maharajganj, Agartala

50 Mridul Giri Fish Trader, Agartala 9436801355

51 Jamsed Ali Animator, DRDA, north district 9436509995

52 Krishna Mohan Sarma Master, NREGA, North district 9436799541

53 Samit Roy Choudhury BDO, Kathalia block

54 SB Nath BDO, Gaurnagar block

55 S Bhattacharya BDO, Panisagar block

56 R Biswas BDO, Kumarghat block


MART, Noida 108

Annexure 2: List of villages visited

S.No. Village name District Block 1 Gajaria West District Bishalgarh

2 Kulubari West District Boxanagar

3 Rabindranagar West District Kathalia

4 Bejimana West District Kathalia

5 Manaipathan West District Kathalia 6 Ishan Chandra Nagar West District

7 Bilthai North District Panisagar

8 Purba Tilthai North District Panisagar

9 Unokoti North District Gournagar

10 Sonamiri North District Bilhalgarh

11 Sukantanagar North District Bishalgarh

12 Kaulikura North District Guarnagar

13 Deoracherra North District Guarnagar Source: Field survey


MART, Noida 109

Annexure 3: Processing unit for puffed rice making

(Source: NABARD’s Potential Linked Credit Plan 2010-11, West Tripura District)

Assumptions

The activity can be taken by a SHGs or a federation

One group member assumes a role of manager cum supervisor

Community makes investment in land, building and godown

Market linkages is established locally and at Agartala

Group member undergo business and marketing training

Finance is available under a government scheme such as SGSY


Price(Rs)

Amount

(Rs)

Income

Sale of puffed rice Quintal 71.25 1775 126469

Cost – non recurring

Land, building and godown

Machinery and equipment

Puffed rice making machine with

thermometer model

Number 1 65000 65000

Belt conveyer set with feeding and delivery Number 1 10000 10000

Essentry Chalna with air blower Number 1 8000 8000

Motor- 1HP and 2HP complete set Number 1 10500 10500

Front chalna, drum chalna complete set Number 1 2500 2500

6 KV a generator set alternator Number 1 28000 28000

Richshaw van Number 1 7500 7500

Weighing scale and balance Number 1 4500 4500

Subtotal (Rs) 136000

Pre operative expenses

Installation 12500

Chatal Lumpsum 15000

Water arrangement Lumpsum 15000 15000

Packing forward Lumpsum 2500 2500

Miscellaneous

Subtotal (Rs) 47000

Furniture and fixture

Wooden chair, table, bench, cash box Set 1 13000 13000

Total non recurring expense (Rs) 196000

Recurring expense

Raw materials


MART, Noida 110

Rice Quintal 75 1100 82000

Salt Lumpsum 3000

Subtotal A 85000

Salary and wages

Manager cum supervisor

Skilled worker Number 2 2500 5000

Semi skilled Number 1 2000 2000

Helper and van man Number 3 1000 3000

Subtotal B 10000

Other monthly recurring expenses

Tax and insurance

Travelling

Packing materials

Fuel

Gunny bag Number 100 15 1500

Miscellaneous 1500

Subtotal C 19000

Total monthly recurring expenses 114000

Total cost of project 310000

Depreciation of machinery and equipment @

10%

1133

Depreciation on furniture @ 15% 163

Interest on total project cost @ 12% 3100

Gross profit (Rs) 8104


MART, Noida 111

Annexure 4: List of secondary sources/references

http://www.gujagro.org/agro-food-processing-fabricated-23.pdf

http://www.crnindia.com/commodity/potato.html

http://www.commodityonline.com/news/India-potato-price-seen-falling-supplies-to-rise-20-28255-3-1.html

http://www.ibef.org/industry/foodindustry.aspx

http://www.fao.org/DOCREP/005/y4358E/y4358e04.htm

http://www.avrdc.org/publications/socio/veg_industry/India.pdf

http://www.rediff.com/money/2007/may03pulses.htm

http://www.researchandmarkets.com/reports/1081509/pulses_in_India.pdf

http://www.ats.agr.gc.ca/asi/5325-eng.pdf

http://www.fao.org/es/esc/common/ecg/98/en/pulsesStudy.pdf

http://www.nhb.gov.in/Horticulture%20Crops/Pineapple/Pineapple1.htm

Economic survey 2008-09, NABAR’ potential linked credit plans

Economic review 2008-09 and Human Development Report 2007

Rural marketing and agricultural marketing by Kiran Sankar Chakraborty, A case study of Tripura

Perspective plan for 2010-11 and 2011-12 by department of agriculture, Directorate of Agriculture, Agartala, Tripura, West

Approved Annual Plan 2010-11, Govt. of Tripura, Department of Agriculture, Agartala

Unit costs for farm sector activities for 2005-06, Tripura state by NABARD

Unit for various economic activities by DRDA, West Tripura District

Revised perspective plan for 2010-11 and 2011-12 and project profile for livestock activities by Directorate of Animal Resources Development, Government of Tripura

Activities and achievement, Animal Resources Development Department, Government of Tripura

State Human Development Report 2007

Development and Growth in North East India, Strategy Report, World Bank, June, 2007

Potential linked credit plan 2010-11, North Tripura Disatrict, NABARD, Agartala

Potential linked credit plan 2010-11, West Tripura Disatrict, NABARD, Agartala

http://www.gujagro.org/agro-food-processing-fabricated-23.pdf

http://www.crnindia.com/commodity/potato.html



http://www.ibef.org/industry/foodindustry.aspx

http://www.fao.org/DOCREP/005/y4358E/y4358e04.htm

http://www.avrdc.org/publications/socio/veg_industry/India.pdf

http://www.rediff.com/money/2007/may03pulses.htm

http://www.researchandmarkets.com/reports/1081509/pulses_in_India.pdf

http://www.ats.agr.gc.ca/asi/5325-eng.pdf

http://www.fao.org/es/esc/common/ecg/98/en/pulsesStudy.pdf

http://www.nhb.gov.in/Horticulture%20Crops/Pineapple/Pineapple1.htm


MART, Noida 112

Annexure 5: Stakeholders Consultant Report

Livelihood Based Agri Business and Market

Studies for North East Rural Livelihood

Project

Stakeholders Consultant Report,

Tripura State

February 2011

Submitted by

MART

A-32, 1st Floor,

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

www.martrural.com

http://www.martrural.com/


MART, Noida 113

Content

1. Background 114

2. Stakeholders Consultant Report 114

3. Feedback to be incorporated in final report 117

Annexure 1: Presentation by PD, NERLP 119

Annexure 2: Presentation by MART 126

Annexure 3: List of participants 151


MART, Noida 114

1. Background:

MART submitted draft report to NERLP and World Bank by email to receive their feedback on the report. Three kinds of consultations took place that gave feedback on the draft report are;

Written feedback from NERLP (23rd December 2010) and discussions with PD, NERLP in Delhi.

Feedback from World Bank via forwarded email from NERLP on 26th January 2011

Stakeholders consultation workshop in Tripura on 11th February 2011

The action to be taken by MART on feedbacks received through consultations is capture under section ‘feedbacks to be incorporated in final report ‘ described later in this report.

2. Stakeholders’ consultation workshop

Objective : To share findings and recommendations of draft report Date : 11th February 2011

Venue : Conference hall No. 2 New Secretariat Building, Agartala, Tripura

Time : 10.30 am to 1.30 pm

A stake holder’s consultation workshop was organized to pre sent the draft findings of Tripura prepared by MART for ‘Livelihood based Agri-business and Market studies for North East Rural Livelihood Project’, a World Bank funded Project. The workshop was attended by 20 participants including Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura., Shri Alok Kumar Srivastava, Project Director, NERLP and Shri Sanjay Gupta, MART, New Delhi. The list of participants is annexed.

Shri Kumar Alok, Commissioner, Rural Development, Govt. of Tripura started the workshop, welcomed

participants in the consultation workshop and requested for their active participation in discussion. He

then invited Shri Alok Kumar Srivastava, Project Director, NERLP to share details related to the NERLP.

Presentation by Project Director, NERLP

Shri Alok Kumar Srivastava explained objectives and genesis of NERLP through a power point

presentation that is annexed. The key points made by him includes:

Immediately after the independence, interventions by the government in rural development became

necessary due to alarming number of poor in early 50’s. Govt. initiated varieties of poverty related

schemes such as FFW,

IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP, SGSY, PMGSY, MGNREGA, State Govt. Social Housing

and Poverty Alleviation Schemes etc.

The schemes were mainly individual oriented to generate employment. It also resulted in creation of

durable community assets such as roads, footpaths and meeting centers and multiple use assets such

as Panchayat Ghar, Schools, Community Halls, Marriage Halls were also created. However, key issues,

involved in the process included proper selection of beneficiaries and quick disposal of assets created.

The key question is the choice in between development and populism.

NERLP is the first multi state project unlike the state specific once lunched /undergoing elsewhere. In

view of sheer magnitude, linguistic differences, varying terrain, and international boundaries it was

decided to phase out the process. Also the expression REGION was replaced by RURAL. North East

Livelihood Promotion Society was constituted and registered at Guwahati in May, 2009.


MART, Noida 115

NERLP Phase-I started with World Bank assistance by the Ministry of DoNER. Spread over 5 years, it will

cover the states of Mizoram, Nagaland, Sikkim and Tripura. The phase-II after 5 years from now will

cover the states of Assam, Meghalaya & Manipur.

A total of 3 lakh household proposed to be covered in 58 blocks of 9 districts of 4 states. Each state will

have 2 districts except Sikkim wherein 15 panchayat wards have also been included from the 3rd

district. Tripura will account for about 50% of the households due to huge density of population and

correspondingly large number of BPL people.

The institutional arrangement includes – RPMU at Guwahati, DPMU in 8 districts and PFT at Block level

based on MP and Bihar pattern. State coordinator appointed by the project to help and coordinate

from time to time, however, fund flow will not be through him. It will be from World Bank to

DEA/DoNER to RPMU to DPMU to PFT and finally to SHGs and other Community Institutions

(CDG, YG, PO etc.)

After Shri Alok K Srivastava finished his presentation he requested Shri Sanjay Gupta of MART to present

the draft report findings.

Presentation by MART

Shri Sanjay Gupta shared the objectives of the stake holder’s workshop which was to

Share findings on livelihood status Facilitate discussion on

Proposed implementation Envisaged roles and responsibilities of project partners

It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and non-farm sectors. The specific objectives were

It was shared that the objectives of the study were to assess economic opportunities in farm, off-farm and

non-farm sectors. The specific objectives were

Understanding 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

Under the context setting, the 8 step study methodology and process, which was shared in the first Stakeholder workshop was then recapped for the forum. Subsequently, MART’s 3M (Micro Finance, Micro Markets, and Micro Planning) concept which was the basis of the study approach was explained to the forum. The field visit was done in 2 phases. In the first 3 villages were visited and in second phase coverage of 10 villages, 5 each in the 2 project districts of namely North District and West District along with other stakeholders was also shared with the forum.

The following section shared the sector wise livelihoods profile across agriculture, NTFP and Animal

Husbandry. Major livelihoods across various sectors, seasonality of availability, marketing channels

of marketed surplus at the community level were then shared with the forum. It was quite clear that

the village and haat level marketing mechanism. Moreover, information on various marketing

platforms available in the vicinity of the villages was shared with the forum. Information on

Infrastructure, Skill and Financial Institutions at the village level, giving a feel of the constraints the

region faces, was shared with the forum.


MART, Noida 116

Based on the potential ascertained and the 1st Stakeholders’ Workshop five potential activities were

identified which were then analyzed through a Value Chain Approach. Henceforth, the value chain

analysis of 5 major activities viz. potato, vegetables, pulses, pineapple and fish culture wherein 3

aspects (1) movement of the respective produce/products from the producers to the market

players, (2) gaps and constraints in the activity and (3) recommended interventions were shared

with the forum.

Finally, three phase implementation plan including phase I – preparedness at the community level

(cluster selection, social mobilization and institution building, preparation of business plan,

capacity building). Phase-II – Launching of the (backward linkages, production, market access

and convergence) and Phase III- Up-scaling (monitoring and evaluation, Strengthening

Institution, legal aspects)

Proper implementation of the project should include repeat training for community for improvement of

their technical knowledge, skill development and entrepreneurial aptitude. He also mentioned that

collectivization of efforts would yield better result instead of individual efforts, be it in procuring

inputs/raw materials and/or marketing of the produce.

Comments and suggestions by participants

After Shri, Sanjay Gupta finished his presentation, Shri Alok Srivastava invited the participants to share

their observation and comments which are captured below.

Shri Rajesh Pandey, DC, West Tripura district initiated the discussion and he expressed his appreciation

for the report findings presented. He did not hesitate to say that he came to know several aspects

of rural livelihoods from the findings to which he was not even aware despite last five year in rural

development department. He shared that like other development projects, implementation of this

project would also require active participation of line departments which won’t be any issue in his

district. He , however sought clarity on mechanism to share the report findings with community in

villages and the project structure to implement the findings in the field. During the

implementation PD, NERLP shared that PIP document provided to the state includes details

requested by him. MART representative shared that report findings will be shared by the project

staff during the implementation phase.

It was shared that out of 3.5 lakh households, 1.17 lakh tribal households in Tripura have recently been

given forest land rights with average landholdings of 1.5 hectare/household. Project need to keep

this factor in mind during the implementation phase.

One participant shared that the findings of this study would provide critical inputs for implementation of

NRLM in the state.

Project Director, DRDA, North Tripura district said that as group approach would be followed in

NERLP, it is necessary that the SHGs should not be burdened with many activities as it

happening presently. SHGs should not take up more than 1-2 activities at a time.

Manager from NABARD shared that it has facilitated formation of above 200 progressive farmer’s club

in the state and NABARD is willing do convergence with NERLP to facilitate training and

exposure programmes for farmers promoted under the project on cost sharing basis. Recently,

NABARD has also promoted Joint Liability Group and which could also be included in the

project.


MART, Noida 117

Deputy Director from Panchayat department said that incense sticks making, though an important

livelihood activity in the state, has not been mentioned in the presentation. Sanjay Gupta replied

that handicraft is mentioned in the draft report submitted and clarified during field visit it was

found that it might not be feasible activity for poor as return are low. Participants commented

that bamboo and cane cultivation is declining in the state and therefore, bamboo and cane

cultivation should be promoted in the state.

BDO, Boxanagar was very forthright in stating that many rural projects, could not fulfill its objectives

due to deficiency in delivery system and therefore, for success of NERLP the need is to ensure

proper implementation plan and its delivery. Shri Srivastava appreciated the points and said that

project would take necessary precautions for delivery of inputs and services under the project.

Couple of participants shared that aromatic/medicinal plants and aloe Vera have good potential therefore,

cultivation of such plants may be considered for inclusion in the activities to be promoted by

under NERLP. One participant suggested that nursery promotion could be explored as it is

commercially successful activity. Similarly, representative from planning and statistical

department shared that incense stick making and transportation is a big opportunity in the state

and could be promoted in the state. Sanjay Gupta from MART clarified that project can promote

new activities after conducting proper feasibility study for them.

It was found during field visits that milk productivity is low and varies from 1.5 to 2 liter per day. Very few

households reared hybrid cows. Manger from Tripura Milk Union said that the main bottleneck

for low milk productivity in the non availability/scarcity of right kind of fodder and poor animal

management practices adopted. He requested that NERLP should look into this aspects and

encourage cultivation of improved variety of fodder and artificial insemination in the state.

Joint Director, Fisheries said that ornamental fish is quite lucrative livelihood activity as it fetches Rs.15-

25 per piece and can be promoted under the project for which proper marketing system needs to

be placed in the state.

Commissioner & Secretary, Rural Development Department wanted to know about financing mechanism

under the project and suggested that it should not be opposite to what is promoted under NRLM.

The Project Director clarified that finance will come directly to the district unit of the project and

from there it would go directly to the bank account of community members. He also mentioned

that such details are captured in the PIP document.

The workshop ended with vote of thanks by Shri Amit kumar Kar, Project Manager, NERLP.

3. Feedbacks to be incorporated in the final report

Feedback received from NERLP /World

bank/Stakeholders

Action to be taken by MART

Chapter 1: In the step 4, the examples of five products should be relevant to a particular state.

The products mentioned are specific to Tripura state only.

Chapter 3: The credit availability scenario should be also adequately elaborated

Noted, credit availability scenario will be covered suitably.

Chapter 4


MART, Noida 118

The process of short listing of products has to be elaborated and justified.

Taken note of, justifications for short listing of products 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.

Taken note of, Available data from secondary sources have been already included under background sections of each product value chain. However, will include additional relevant data under each 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.

The economics of all the sub sectors should be more broad, covering all aspects, including marketing.

Detail economics has been given for selected 5 products that include cost of raw material, transportation and fix costs and marketing etc.

More clarity is sought on the nature of details asked for.

The study has not identified the critical intervention points in the value chain of the products. In view of thereof, it did not cover the investment planning for those critical points.

Critical intervention points are presented as strategic action points in tabular form under constrain solution matrix for each product value chain. Economics of each value chain activity covers investment points for raw material/inputs, transportation, marketing, fixed cost and working capital requirement wherever relevant.

The study should provide guidance for setting up small, viable and sustainable processing units.

Taken note of for integrating it under each product value chain

World Bank Feedback

The UNIT costs/investment required for each livelihood activity studied by them is put in a tabular form starting from the household/SHG/ and cluster level, so that we are clear what is the allocations for investments to be made from the various funds within the project

The details will be given in tabular form in the executive summary also.

Also, for each activity in each state they should clearly identify one agency who can be the overall resource/ sector support agency which can be contracted in.

Potential partners will be mentioned under summary of recommendations under value chain analysis chapter.

Other stakeholders feedback

How livelihood survey findings will be shared with rural community ?

Broad implementation plan will be shared under value chain analysis chapter.

Promotion of activities such as incense stick making, ornamental fish, aloe vera, medicinal and aromatic plants

Study mentions five value chain activities and other potential activities that can be promoted under the project. New activities could also be promoted after doing a proper feasibility study for very new activity.


MART, Noida 119

Annexure: presentation by PD, NERLP

1

North East Rural Livelihood Project (NERLP)

Ministry of DoNER, Govt. of India

Guwahati - 22

Topic Livelihood Study of NERLP Stakeholders Workshop

Conference Hall No. 2, New Secreatariate

Agartala

10.30 am, 11th february, 2011

By

Alok K Srivastava, IAS,

Project Director, NERLP

2

• Interventions by Govt. in RD found necessary due to

alarming number of poor in eraly 50’s.

• India was no longer a police state, it became a welfare

state

• Country, also in addition ravaged by internal conflicts,

demands relating to lingustic reorganisation of states,

droughts and farmers apart from the wars of 1948, 1962

& 1965

• By the time 1971 war was faced, we already had

sufficiently in food grains if not food security.

•


MART, Noida 120

• Varieties of poverty related schemes tried since 50’s –

FFW, IRDP, IAY, TRYSEM, DWCRA, NREP, RLEGP,

SGSY, PMGSY, MGNREGA, State Govt. Social

Housing & Poverty Alleviation Schemes

• Focus – individual oriented, at the same time, employment

was aimed to be generated, ultimately resulting into creation

of durable community assets, such as, Panchayat Ghar,

Schools, Community Halls, Marriage Halls were also

created.

• Perhaps, we had too much of doles going to

individual beneficiaries. Many a time selection of

beneficiaries was problematic. As a result, needy

won’t get what was due to them and some of

selected ones would very quickly reply loan amount

by duly pocketing subsidy.

• Also, assets would be quickly disposed off in some

cases. It was the case with some non-regular social

welfare oriented schemes.

• A lot of thought has, therefore, gone into review of

ongoing schemes aiming at a frontal attack on

poverty. Evaluation by Govt., Non-Govt. and

international Agencies and what not ?

• Choices is between Development and Populism ?


MART, Noida 121

• In view of success of SHG experiment in welfare

oriented sphere, it has been found desirable to follow

a group oriented approach. Apart from the number

aspect, the quality, proper use of resources, capacity

building and empowerment of the needy has been

emphasized.

• NERCORMP experiment began with the help of IFAD

and Ministry of DoNER w.e.f. 2000 in 6 districts of 3

states of North East

• Implementation in W. Garo & W. Khasi Hills of

Meghalaya; K. Anglong & N.C. Hills of Assam and

Senapati & Ukhrul of Manipur. Though progress was

slow, the scheme could reach those areas rarely or

half heartedly covered by the Govt. functionaries. 1

• Perceptible improvements noticed in environment

protection, road and transport link to the villages, basic

health care, improving primary education, cultivation

and processing of local herbs and medicinal plants,

improving the output of traditional crops etc.

• Livelihood promotion projects taken up with assistance

of World Bank in AP, TN, MP, Rajasthan, U.P., Orissa,

Chattisgarh, Bihar during 2000 to 2008. Some of the

states have gone for 2nd round of financing (parallel

with 2nd dose in IRDP)

• Close on the heels of success of such projects, GoI

decided to launch Livelihood Promotion Project in the

whole of NER. Consultation with all 8 states, survey

and assessment started w.e.f. 2007.6


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• NERLP is the first multi state project unlike the state

specific ones launched /undergoing elsewhere.

• In view of sheer magnitude, linguistic differences,

varying terrain, international boundaries and lack of

exposure to EAP, it was decided to phase out the

process. Also the expression REGION was replaced

by RURAL

• North East Livelihood Promotion Society was

constituted and registered at Guwahati in May, 2009.

Temp. Office set up on 21st December, 2009. Proper

building occupied w.e.f. June, 2010

7

• NERLP Phase-I therefore started with World Bank

Assistance by the Ministry of DoNER. Spread over 5

years, it will cover the states of Mizoram, Nagaland,

Sikkim & Tripura. The Phase-II after 5 years from now

will cover the states of Assam, Meghalaya & Manipur.

• A total of 3 lakh household proposed to be covered in

58 blocks of 9 districts of 4 states. Each state will have

2 districts except Sikkim wherein 15 panchayat wards

have been also included from the 3rd district.

• Tripura will account for about 50% of the households

due to huge density of population and correspondingly

large number of BPL people.8


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• Sample Livelihood activities – initial feedback of

states, field visits by NERLP team but final selection

only after recommendation of MART team

• Institutional arrangement – RPMU at Guwahati, DPMU

in all 8 districts and PFT at Block level (MP, Bihar

pattern)

• State coordinator appointed by project to help and

coordinate from time to time, however, fund flow will

not be through him. It will be from World Bank to

DEA/DoNER to RPMU to DPMU to PFT and finally to

SHGs and other community institutions (CDG, YG, PO

etc.)

• Baseline survey: All 4 states, 120 village ( Feb-May)20 villages in P. Dist (10 HH)

10 villages in N.P/ Dist ( 5 HH) 9

• Economic and Financial Analysis and costing exercises already taken

up

• 5 manuals – PIP completed, SPIP ( 2 draft), COM (3rd draft), FMM (

Final draft on) & HRM ( 3 drafts).

• 3 studies – Livelihood, Social Assessment (including Tribal

Development Framework, RR etc.), Environ. Assessment in final

stage.

• 3 World Bank Missions – Guwahati (March, 2010), Guwahati (May,

2010), Agartala (July, 2010), Pre-Apprisal Mission expected in Sikkim

in March, 2011

• Field visits to 4 project sattes including Tripura ( a numbervillages in

5 blocks of west Tripura & 4 blocks of North Tripura covered).

Exposure tours to 3 successful states – AP, MP & Bihar10


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• Interaction also held with 52 numbers of SHGs,

both promising and vibrant ones during field

visits in May & July, 2010• West Tripura District: Blocks covered Boxanagar,

Bishalgarh, Dukli, Hezamara, Jirania, Mandwai

• North Tripura District: Blocks covered: Kumarghat,

Gaurnagar, Panisagar, Pecharthal

• A number of other villages covered by the 3

study teams viz. Livelihood (6+7), Social

Assessmemnt & Environment Assessment

11

• Villages studied by Livelihood team• West District – Gajaria, Kalubari, Rabindranagar,

Bejimana, Manaipathan, Ishan Chandra Nagar ( 2 blocks)

• North District- Bilthai, Purba Tilthai, Unokoti, Sonamiri,

Sukantnagar, Kaulikura and Deoracherra ( 4 Blocks)

• In sum and substance, after these efforts, we

will have a good idea of the potential of the

villagers of two districts. Stage in now set for

village entry subsequent to final nod from Worls

Bank.

12


MART, Noida 125

www.dawnerlp.in13

Thank You

14


MART, Noida 126

MART Presentation

Livelihood Based Livelihood Based AgriAgri--Business and Market Business and Market

Studies for North East Rural Livelihood ProjectStudies for North East Rural Livelihood Project

Tripura FindingsTripura Findings

February 2011February 2011

Objectives of stakeholder workshop

Recap of study methodology and process adopted

Share findings on livelihoods status

Facilitate discussion on

• P roposed implementation

• Envisaged roles and responsibilities of project

partners


MART, Noida 127

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

North East Rural Livelihood Project

The Ministry for Development of North Eastern

Region (DONER ), Government of India proposes

North East Rural Livelihood Project (NERLP) to

address the issues of rural poverty and creation of

sustainable livelihood for rural poor particularly for

women .

Project states include Tripura, Nagaland, Sikkim and

Mizoram

MART , a leading Livelihoods and Marketing

Consultancy signed agreement on the 4 th of August

2010


MART, Noida 128

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

Key Informants Place

Villagers (Farmers, SHG Members,

Youth, Church etc.) 13 villages in 2 districts

Secretariat & Directorate Officials Agartala & Dist. HQ

Govt. Line Dept. Officials

Dist. HQ

Support Institutions ( NABARD , NIRD,

RGVN, etc.) Agartala and Guwahati

World Bank, NERLP Delhi and Guwahati

Processors, Traders, Transporters etc. Agartala and District HQ,

)

Key Stakeholders consulted


MART, Noida 129

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

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


MART, Noida 130

Identification

of Viable

Activities

Sustainable

Activities

Matching Supply & Demand

Handholding

services

Training

Exposures

Infrastructure

Survey in

Villages

Resources

Skills

Technology

Finance

Infrastructure

Support

Services

Market survey

• Own Village

–Shop

–Trader

–Vendor

• Haat Bazar

• Town Market

Supply Possibilities Demand Pattern Project SupportIncome Opportunity

3M Concept

District Block Villages

West

Boxanagar,

Bishalgarh,

Kathalia ,

Gajaria, Kalubari,

Rabindranagar, Bejimana,

Manaipathan, Ishan Chandra

Nagar

North

Sangsangyu , Gaurnagar, Panisagar

Bilhalgarh

Bilthai, Purba Tilthai,

Unokoti, Sonamiri,

Sukantnagar, Kaulikura and

Deoracherra

Study villages


MART, Noida 131


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Agriculture – Major CropsMajor crops Availability in



involved

Paddy 100 31

Vegetables (except potato) 90 24

Potato 90 15

Areca-nut 60 20

Pulses 50 1

Pineapple 50 8


Fruits (except pineapple) 30 5

• Agriculture trends• 68% of rural households possess agriculture land and 32%

households are landless.

• Average size of landholding has declined from 1.25 hectare in 1976 to 0.97 in 1990-91 to 0.6 ha in 1995-96

• 95% of total operational landholdings in the state are below 2 hectare and these account for 75% of operated area

• Factors affecting agriculture• Entrepreneurial attitude of farmer,

• Size of land holding,

• Availability of irrigation facility,

• Adoption of package of practices


MART, Noida 139

Input Sourcing

• Farmers procure agriculture inputs such as seeds, fertilizer, pesticides/weedicides, and equipment/tools from nearby towns. Seeds and fertilizers are available from government department

• Farmers don’t stock inputs and purchase them on as-and-when-required basis, mostly in cash.

• Short supplies of chemical fertilizers coupled with individual purchases of small quantities make farmers to spend two to three times of the actual price.

• Retailers offer credit but charges higher rates who also offer advice.

• Farmers get duped on brands due to low literacy levels.

Agriculture practices and technology used

• Farmers use home grown seeds but use of certified and hybrid seed has picked in last few years.

• Use of power tiller saves labour cost and time (Rs 100 – Rs 150 per hour)

• Technical training make farmers educated and aware but adoption of practices is low and different.


MART, Noida 140

Access to finance

• Money lenders are the traditional source of financer to rural community and they charge 5-10% per month.

• Agencies such as RGVN, Bandhan and Basix operate

– provide loan facility to villagers in the range of Rs 5000 to Rs 20000 for consumption and income generation activities.

– effective rate of interest to farmers comes to 30% per annum

– Villagers repay the loan on weekly basis.

• SGSY schemes offers bank loan and subsidy. SHG needs of proper handholding and marketing support

Market accessMajor crops Volume consumed in

village (%)

Marketable surplus

quantity per village (%)

Paddy 74 26

Arecanut 44 56

Pulses 39 61

Potato 20 80

Fruits 18 82

Vegetables 4 96

Tea plantation 3 97

Pineapple 1 99



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Market accessMajor crops Selling system (% of produce) Sale price

Within

village

Traders Haat (Rs per

quintal)

Paddy 4 80 15 800-1000

Arecanut - 20 80 6000-9000

Pulses - 100 - 3000-5000

Potato 5 95 - 700-1300

Fruits - 100 - 2000-3000

Vegetables 3 82 15 1000-3000

Pineapple 2 98 - 3-5 per piece

Rubber

plantation

- 100 - 14000-16000

Agriculture practices by FarmersFarmer practices Farmer 1 Farmer 2 Farmer 3

Location West District West District North District



Land ownership Leased Self Self

Land used for potato cultivation 0.4 acre 0.4 acre 0.4 acre


Daily involvement 2 hours 2 hours 2 hours

Sourcing of seed Private Agriculture office Agriculture office

Use of organic manure No Yes Yes

Application of chemical fertilizers Yes Yes Yes

Inputs cost (Rs) 18190 14970 21750


Selling to Sub division wholesaler Sub division wholesaler Consumer

(Weekly haat)


Net income 19490 4230 13250



MART, Noida 142

Livestock based livelihoods

Livestock Availability in

percentage of

villages

Percentage of

households

involved

Fishery 100 12

Poultry 100 22

Cow rearing 90 18

Goatery 70 25

Piggery 30 3

Market accessLivestock Volume consumed in

village (%)

Marketable surplus in

village (%)

Cow milk 85 15

Poultry 19 81

Fish 12 88

Goat 10 90

Pig 5 95


MART, Noida 143

Market accessLivestock Selling system (% of produce) Sale price

Within village Trader Haat (Rs per kg)

Fish - 96 4 70-160

Pig 4 72 24 125-135

Goat 10 70 20 180-220

Poultry 1 95 4 110-150

Cow milk 100 - - 20-28 per litre

Production and marketing practices Fish culture practices Farmer 1 Farmer 2 Farmer 3

Location West District North District North District


Total landholding 2 acre - 3.2 acre

Land ownership Self SHG Self

Land used for fish culture 0.4 acre 2.6 acre 0.4 acre


Sourcing of seed Govt./Private Own Private


Selling to Wholesaler Wholesaler Wholesaler


Inputs cost (Rs) 18190 14970 21750

Net income (Rs) 19490 4230 13250



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Non-farm based livelihoodsNon-farm activities Availability in


Percentage of

households involved

Place of work Traditional/ acquired

skill

Stitching 100 27 Within Village Acquired

Laborer 100 19 Village/Outside Acquired

Electrician 100 1.2 Within Village Acquired

Insurance agent 100 2.7 Village/Outside Acquired

Driver 100 5 Within Village Acquired

Government service 90 6.4 Outside village Acquired

School teacher 90 1.3 Outside village Acquired

Incense stick making 70 16 Within Village Traditional

Army 60 0.6 Outside village Acquired

Private service 60 3.0 Outside village Acquired

Hotel jobs 60 0.5 Outside village Acquired

Knitting 40 8 Within Village Traditional

Police 40 0.4 Outside Acquired

Plumber 40 0.1 Within Village Acquired

Weaving 30 8 Within Village Traditional

Embroidery 30 5 Within Village Acquired

Carpenter 20 0.5 Village/Outside Traditional

Food processing 10 0.1 Within Village Acquired

Key Livelihoods under NERLP

• Fish culture• Potato cultivation• Pulse cultivation• Vegetable cultivation• Pineapple cultivation• Piggery• Arecanut• Goatary• Rubber plantation• Cow rearing• Handicraft• Vocational skill based


MART, Noida 145

Potato VC




Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers




Rs 12-13/kg

14-15/kg

Rs 7-10/kg*


Vegetable VC




Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers




Rs 12-13/kg

14-15/kg

Rs 7-10/kg*



MART, Noida 146

Fish VC




Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers




Rs 12-13/kg

14-15/kg

Rs 7-10/kg*


Pulse VC




Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers




Rs 12-13/kg

14-15/kg

Rs 7-10/kg*



MART, Noida 147

Pineapple VC




Wholesalers

(Agartala)


Consumers

Wholesaler

(Agartala)


Consumers Consumers

Wholesaler Markets

Retailers

(Subdivisions)

Retailers




Rs 12-13/kg

14-15/kg

Rs 7-10/kg*


Key VC constraints• Seeds from the government department are not

available on time which forces farmers toprocure them from open market.

• Availability of fertilizers is low when the demandis high as a result prices group by 50-200% inpeak demand times.

• Farmers are not educated so they find problemin reading the names of pesticides so they go bythe advice of retailers who sometime offerduplicate products


MART, Noida 148

• Farmers are not aware of new improvedtechniques, such as staggering method thatimprove productivity significantly

• Availability of irrigation is an issue, in somevillages pump sets are not available and farmershave to hire them from other villagers @ Rs 80per hour

• Lack of adequate extension services from govt.department

• Due to lack of sufficient cold storage facility inthe state, farmers sell the produce immediatelyafter the harvest at throw away prices.

• Availability of works under NREGA at Rs 100 perday has pushed labour costs to as high as Rs 150per day.

• Bank loans not available to poor; MFIs provideloan at higher interest but their loan productsdon’t match the farmers expectations.


MART, Noida 149

• Farmers sell individually to the retailer /wholesaler resulting in higher overheadmarketing costs

• The farmers have low affinity for collective actionfor sourcing of inputs and salling resulting inhigher operating costs.

• Blockage of roads and civil unrest may lead toincrease in input costs and market failure makingcultivation unviable.

Broad Strategies

• Focus on productivity enhancement

• Focus on building capacity on markets andmarketing and entrepreneurial skills and directmarketing of produce

• Decentralize production and collectiveprocurement and marketing of produce

• Regular training on better PoPs/technologies

• Promote village level cadres for handholdingsupport


MART, Noida 150

Thanks and discussions

Implementation Plan• phase I – Preparedness at the community level

– cluster selection– social mobilization and institution building– preparation of business plan– capacity building

• Phase-II – Launching of the – backward linkages– production– market access and convergence

• Phase III- Up-scaling – monitoring and evaluation– Strengthening Institution– legal aspects


MART, Noida 151

Annexure: List of participants

S.

No.

Name Designation Agency

1 A . N. Dighe Manager NABARD

2 A . V. Chand Joint Director Planning (statistics)

3 Alok K Srivastava, IAS Project Director, NERLP Min of DoNER

4 Amit Kr. Kar Project Manager NERLP

5 Apan Kr. Sarkar Joint Director Fishery

6 Bhaskar Das Gupta Dy Director Panchayat Panchayat Dept

7 Braja Madhar Bhattacharya Consultant MART

8 Brijesh Pandey DM, West District Rural Development

9 C K. Jamatia ADM & PD, West Tripura Rural Development

10 D. Koloi Asst. Project Director DRDA (west)

11 Dipayan Ghosh State Coordinator NERLP

12 Dr. Adarsh Singh OSD RD Department

13 Jayeeta Chakraborty Asst. Project Director (west) DRDA

14 Kalyan Roy Manager (livestock) TCMPU Ltd

15 Konika Roy RD officer, Kumarghat DRDA

16 Kumar Alok, IAS Comm. & Secy Rural Development

17 Puja Thapa Rural Development

18 Rajendra Kr. Noatia PD, DRDA, North Tripura Rural Development

19 Sanjay Kr. Gupta Partner MART

20 Subhasis Das BDO, Boxanagar Rural Development

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