Technical Digest Issue - 6

Articles

CREDIT SUPPORT FROM NABARD FOR DEVELOPMENT OF HORTICULTURAL AND PLANTATION NURSERIES
Dr. M.R. Sharma National Bank for Agriculture and Rural Development (NABARD) came into existence in July 1982. It is established for providing credit for the promotion of agriculture, small scale industries, handicrafts and other allied economic activities in rural areas with a view to promoting integrated rural development and securing prosperity of rural areas. NABARD provides refinance assistance for a broad spectrum of investment and production oriented activities in the rural sector sprawled over Minor Irrigation, Animal Husbandry, Farm Mechanisation, Forestry, Land Development, Dry land Farming, Market Yards and Storage Godowns, Non-Farm activities, rural based industries and Horticulture and Plantation. Nursery - Certain Important Aspects : While it is the continuing endeavour of all the scientists, entrepreneurs and service providers to enhance the production, productivity and quality of every agricultural commodity, the importance of planting materials definitely could not be underestimated certain aspects, which need to be attended to all the time for the success of this all around effort maybe enlisted as under; Production of quality planting material, genetically improved with assured higher productivity Production of adequate quantity of quality planting material sufficient enough to meet the demand in the country. Establishment of commercial nurseries in localities closer to the demand for the convenience of transportation of the product to the farmers fields with minimum or no damage. Making the planting materials available to the farmers in right time and right stage is also equally important. Role of NABARD India being a country with wide geographical variations with distinct different agroclimatic conditions has the potential to grow a large number of horticultural and plantation crops commercially. The field level experience and feedback gathered suggest a wide gap between the requirement and availability of the planting materials in our country. Although the quantitative assessment of this gap is not readily available, it can safely be stated to be sizeable. One of the most important inputs for bridging this gap is undoubtedly the institutional credit support to the nurserymen. NABARD has been extending refinance support for the promotion of all kinds of nurseries in appreciation of this important need. The wide range of nurseries covered by the umbrella of refinance support include those of fruit crops, ornamental crops, plantation crops, tissue culture laboratory, green house, etc. NABARD provides its services to this sub-sector by the

following means : Extends refinance support to the commercial and cooperative banks. Appraises commercial nursery projects to be financed by the banks. Prepares model schemes and guidelines for the benefit of the bankers in particular. Publishes a quarterly scientific journal namely Technical Digest covering technical and economic aspects of different activities including nursery development. Support R&D projects on technological improvement in production of quality planting materials by providing assistance from R&D grant. Providing the technical support to the Bankers Organising the workshops and seminars for the benefit of the Bankers. Credit Support for Promotion of Nurseries The activities and items related to nursery development for which credit support is available through the banks may be enumerated as under Land development - Land leveling, bunding, terracing, preparation for raising the nursery, etc. Raising the mother plants and the nursery - their maintenance and upkeep. Irrigation - Well, pumpset, pipeline, water storage tanks, sprinkler system, etc. Civil structures such as green house, laboratory, godown/storage, watchmens quarter, worksheds, etc. Erection of fencing Procurement of all kinds of machinery, equipments and tools necessary for raising the nursery. Each project, however, needs to be technically feasible, financially viable and bankable to be eligible for bank finance and NABARDs refinance support.

Technical Digest Issue - 6 NABARD refinance Development : support for Nursery purpose, 94.40% being availed by 6 states, (UP, Tripura and 4 South Indian states) leaving as little as 5.6% for other 10 states. Out of these 10 States,Rajasthan is the only one availing more than 1% (1.74%) of our refinance.Everyone of the other 9 states have availed less. The available information indicate a consistency in all the four Southern states and West Bengal in availing refinance support over the last 7 years. In all other states, this is very irregular. It is apprehended that once the demand for rubber planting materials come down in Tripura, there would be a decline in total refinance disbursement in the present trend. Tripura availed Rs.354 lakh and Rs.569 lakh out of a total of Rs.555 lakh and Rs.872 lakh contributing as high as 63.8% and 65.3% respectively during 1999-2000 and 2000-01. The overall picture of inflow of credit into this subsector is undoubtedly quite disturbing. B. Tissue Culture Laboratory (TCL) : In view of the importance and success of the tissue culture technology in fast multiplication and production of quality planting materials, NABARD has been extending full support for establishment of tissue culture laboratories in the country. In total 32 such units have been granted our refinance support to the tune of Rs.52.69 crore so far. More than Rs.30 crore have already been disbursed. The statewise number of TCL schemes and refinance availed are presented in Table II below Table II : Statewise number of Tissue Culture Laboratory schemes sanctioned by NABARD and Refinance Assistance availed since 1994-95 : Refinance No. of TCL Assistance Schemes availed Share (%) (Rs. Lakh) Andhra Pradesh 3 293 9.7 Gujarat 2 72 2.4 Haryana 1 Karnataka 2 592 19.6 Kerala 3 27 0.9 Madhya Pradesh (Undivided) 1 0 Maharashtra 11 571 18.9 New Delhi 1 183 6.1 Rajasthan 1 0 Tamil Nadu 2 746 24.7 Uttar Pradesh (Undivided) 3 529 17.5 West Bengal 2 5 0.2 TOTAL 32 3,018 100 State

A. Soil-based Nurseries : NABARD has disbursed a sum of Rs.2041 lakhs during the last seven years for the development of different soil based nurseries in India to different banks as shown below Year 1995-96 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 Total Amount (Rs. Lakhs) 131.00 159.00 88.00 236.00 555.00 872.00 3787.34 5828.34

Except in the year 1997-98, the refinance disbursement trend has been upward. The same during 2001-02 is a quantum jump (Rs.3787.34 Lakh), covering about 65% of the total of the last seven years. However, this should not be the matter of complacent as it is realised that there is substantial potential for tapping this resource as the supply of planting materials still falls far short of the requirement. Our disbursement figures of the last seven years further indicate the following facts : 33% of the disbursement (Rs.1912 lakh) is for plantation crops nurseries, remaining 67% (Rs.3916 lakh) is for horticultural nurseries. 50% of the plantation nursery refinance is for rubber crop alone (Rs.959 lakh out of Rs.1912 lakh). Only 6.5% of the horticultural nursery refinance is for fruit crops and about 88% for ornamental nurseries (Rs.253 lakhs and Rs.3439 lakh respectively out of Rs.3916 lakh). Out of Rs. 3439 Lakh disbursed for Ornamental nurseries, 99% (Rs. 3406.21 Lakh) was disbursed in Uttar Pradesh and Uttaranchal during 2001-02 only. A look into the statewise distribution of NABARD refinance support during the same period (vide Annexure I) reveals the following: Undivided Uttar Pradesh has availed the lions share (more than 58%) of our refinance support. The major chunk of this was for development of ornamental nurseries only. A small state like Tripura has availed good share of the assistance (16%) for raising rubber nurseries. Southern states of Kerala, Andhra Pradesh, Tamil Nadu and Karnataka have availed almost 20% of the total refinance, Kerala alone availing about 8%. Out of 16 states availing NABARD support for this

Technical Digest Issue - 6 What we observe from Table II above are as follows : Maharashtra leads in having largest number of TC Laboratories (11 out of 32 in total) with NABARD support, followed by Andhra Pradesh, Kerala and Uttar Pradesh each having 3 units. Tamil Nadu has availed the highest amount of refinance assistance sharing about 25% of the total disbursement of Rs.30.18 crore. Karnataka, Maharashtra and UP are the other states availing nearly 20% each. It is clear from these data that the major part of the country is still unaware of the benefits of TC plants for which this activity has not come up commercially as fast as it should have. NGOs can play a very important role in this respect. The concept of agri-clinic can also be implemented for this purpose. Banks at present are shy of financing agricultural/ horticultural activities in general and nurseries in particular. In order to meet the ultimate objective of improving the overall economic condition of the farmers, the importance of quality planting materials making available in adequate quantity and in right time cannot be underestimated. The role the financial institutions have to play in making this possible, it appears, is not appreciated adequately so far. Imparting proper training to the bankers and appreciation of this importance at appropriate levels in these institutes are the need of the hour. Normally, nurserymen are small or marginal farmers with exception to TCL promoters. Non-availability of assistance from the financial institutes should not be a problem to the eligible nurserymen, provided the scheme is considered techno-economically sound. A positive mind set of all concerned with these activities is, of course, a pre-requisite. A matter of serious concern today in the financial institutes is increasing default in repayment of loans by nurserymen. The Indian Nurserymen Association can conveniently and convincingly play very positive roles in close co-ordination with the lending institutes for improving the recovery and continuing assured repayment of loans by the beneficiaries. There is a need to have the complete synergy in the sytem.

iv.

Constraints faced by the financial institutions to extend credit for nursery development : The major constraints faced by the financial institutions in extending credit support may be enumerated as under: i. One of the major problems experienced by some banks is non-repayment of loans extended to many nurserymen in right time and amount. This results in increase in NPAs of the banks, frustrating the interest of the banking community. ii. Lack of entrepreneurship for promoting nursery activities. iii. Lack of awareness amongst the farmers about the benefits of TC plants iv. Inadequate experience amongst bankers in appraising nursery schemes/TCL schemes for financing purpose. Future Strategies : In order to promote horticultural and plantation nursery development in commercial scale in our country, certain strategies have to be adopted. They are : i. Effective extension services have to be rendered by the state governments with right earnest to make the farmers aware about the importance of quality in planting materials in order to harvest the best possible benefit of growing horticultural and plantation crops. ii. State governments may explore the feasibility of enacting laws such as Nursery Act, to have control over the quality and genuineness in production of planting materials by the nurserymen. iii. Minimum facilities for testing soils, providing technical guidance and important inputs should be made easily available to the rural entrepreneurs.

v.

vi.

vii.

Developmental Role of NABARD : NABARD keeps close liaison with ICAR, Agricultural Universities, Government of India, financial institutes and NGOs for promoting agricultural and horticultural activities, in the country. In order to facilitate institutional credit for the smaller projects, it introduced Automatic Refinance Facilities (ARF) system. Under this, banks are not required to submit the scheme to NABARD for refinance support; instead they can claim refinance assistance directly after financing the cause, if the refinance amount is Rs.15 lakh or less. As such, most of the nursery schemes are likely to be eligible for ARF. As an effort to help the bankers and other concerned with the financing agri-export projects, NABARD has published illustrative model guidelines in the form of brochure entitled Model Bankable Projects on

Technical Digest Issue - 6 Biotechnology - Plant Propagation by Tissue Culture. However, as stated elsewhere, there is urgent need for generating awareness in large part of the country about the definition and importance of quality planting materials, particularly amongst the farmer community. Conclusion Despite the constraints, it is felt very important to promote nursery development in our country in the interest of faster economic growth with concerted efforts of all the agencies concerned, including financial institutions. The Indian Nursery Association and local nurserymen Associations may play very vital role in enhancing the credit flow into this subsector. In the mutual interests of nurserymen, farmers and financial institutes, Nurserymen Associations should be constituted at local level all through out the country (as in case of rubber planters in Kerala) and Federation of such Associations may be formed, possibly under the leadership of Indian Nurserymen Association This paper makes an effort to go into the details of a commercial model horticultural scheme with cost and economics for the benefit of all interested. The costs shown are, however, indicative ones only. Annexure I State-wise distribution of refinance support for Nursery Development from NABARD during 1995-96 to 2001-02 State Andhra Pradesh Assam Bihar (Undivided) Gujarat Karnataka Kerala Madhya Pradesh (Undivided) Maharashtra Orissa Punjab Rajasthan Tamil Nadu Tripura Uttar Pradesh (Undivided) West Bengal Haryana TOTAL Total Amount (Rs.Lakhs) 389.92 53.29 4.50 10.00 157.40 461.86 1.00 45.63 14.30 2.00 101.27 145.07 932.00 3415.21 54.48 40.41 5,828.34 Share (%) 6.70 0.9 0.10 0.2 2.70 7.9 Negligible 0.8 0.3 Negligible 1.7 2.5 16 58.6 0.9 0.7 100 Work-shed : A work-shed of 6m x 4.5m with thatch roof and locally available materials like bamboo, wood, etc. may be constructed. A total amount of Rs.5400.00 @ Rs.200/- per sq.m has been considered for this purpose. Green House : A green house of 9m x 4m dimension with 90 cm. brick wall, 3.6m tall rhombus netting with expanded metal and polythene roof supported by local materials like bamboo, wood and planks, may be constructed. The cost estimated for such a house is approximately Rs.250.00 per sq.m. An additional lumpsum amount of Rs.1000.00 may considered for construction of wooden racks inside in green house. Cost Involvement : The following items and amounts of investment are considered for different purposes as envisaged in the physical programme. Development of Ornamental nursery A model Scheme for institutional finance There has been increasing demand for horticultural and plantation crops, more particularly of fruits and ornamental ones in both urban and rural areas of India. Commercial nurseries have come up well particularly in and around the cities and towns. Soil and Climate : The species selected for raising in the nurseries would be based primarily on the climatic condition and the market preference. They may be seasonal, annual as well as perenial, may be indoor or outdoor, pot plants, ball plants and poly bag plants, as per market demand. Physical Programme : For this model, the following physical programme is considered :

Year - I 1 Development of mother plants (250 Nos. of plants of different varieties) 530 sq.m Raising pot plants (Nos.) Seedbed nursery : Polybag seedlings (Nos) Ball seedlings (Nos.) 500

II

II onwards

800

1000

2 3

15000 15000

18000 18000

21000 21000

Technical Digest Issue - 6 A. Establishment and maintenance of mother plants : No. of plants : 250 Sl. No. Items 1 2 3 4 5 6 7 8 Field preparation, pit digging & filling. Application of manures and fertilizers [including micronutients] Planting materials @ Rs.30/- each + 10% excess for infilling. Planting Watering Interculture Pruning, cleaning the plants Plant protection Total (A) 8250 500 2250 2250 250 2500 3000 2500 2500 300 350 400 500 1500 1000 1000 1000 Year I II III [Fig. in Rs.] C. Establishment of Seedbed nursery : Polybag seedlings (Nos.) Ball seedlings (Nos.) Yr.I II III 15000 18000 21000 15000 18000 21000 (Figs. in Rs.) Yr.I II III 1000 1500 2000 600 750 850 400 500 600 1200 1440 1680

16000 6650 7400

Sl. No. Items 1 Land & Beds preparation. 2 Application of manures and fertilizers. 3 Seeds & sowing 4 Polybag [15cmX10cmX150G] 5 Seiving soil, mixing with manures & fertilizers, filling sleeves and transplanting 50% of seedlings from beds. 6 Watering. 7 Interculture 8 Plant Protection Total - C D. Equipments & Implements : Sl. No. Items 1 Sprayers 2 Spades, forks, knives, Khurpis, secateurs etc. 3 Water pipes, water canes, buckets, etc. Total - D

1500 1800 2100 600 800 1000 750 900 1050 100 150 200 6150 7840 9480

B. Establishment of Pot Nursery : No. of pots : Yr. 1 2 3 Sl. No. Items 1 Earthen pots @ Rs.8/- each [including transportation & 5% damage] 2 3 4 5 Soil @ Rs.250/- per truck load. Application of manures and fertilizers [including micronutrients, etc. Mixing fertilizers and manures with soil, filling pots. Planting materials @ 20/- each [from outside] 6 7 8 9 Planting in pots @ 50 plants/manday Watering Interculture Plant protection Total - B 10000 500 1800 3750 250 8000 2000 800 1000 2000 3250 5000 6000 350 500 [100%] [50%] [10%] 700 1100 1400 1500 2400 3200 4200 500 6720 8400 750 1000 Yr.I II III 500 800 1000 (Figs. in Rs.)

Yr.I 3600 2500 2500 8600

II III - 1200 800

- 800 - 2800

E. Goat proof fencing (For 0.5 acre plot; 650 running feet) : Rs.13000.00 F. Supervision-cum-Salesman : Monthly basis - Rs.2000.00 per month in Yr.I [With an increment of Rs.200/- Rs.2200.00 per month in Yr.II - Rs.2400.00 per month in Yr.III Summery : Items : Yr.I II III Work shed 5400 250 250 Green house 10000 - 1000 Mother plants 16000 6650 7400 Pot nursery 23200 27120 26750 Seedbed nursery 6150 7840 9480 Equipments, etc. 8600 - 2800 Supervisor-cum-Salesman 24000 26400 28800 Goat proof fencing 13000 Total - F 106350 68260 76480 Approx. 106400 68300 76500

23200 27120 26750

Yield Estimates : Items 1 2 3 Pot plants [Nos.] [Saleable 90%] Bouquets [Nos.] Seedlings - [Nos.] : a] Polybag seedlings. 13500 16200 18900 b] Ball seedlings 13500 16200 18900 18900 18900 Nil Nil 450 100 720 120 900 150 Yr.I II III IV onwards

Repayment Schedule : Repayment within 4 years including 1 year grace period. Details are presented in Annexure A. Special conditions : The following conditions will have to be adhered to for such schemes : 1. Source/s of planting materials must be clearly mentioned and it/they should be a reputed and reliable one. 2. Sources of irrigation water must be within or in vicinity of the nursery. Sprinkler system of irrigation is not advisable at the beginning. 3. The beneficiary must develop mother plants of his own. However, about 10% planting materials may be procured every year from outside source to introduce new varieties in the locality. 4. The plants / seedlings must be protected from cattle damage by providing goat proof fencing. 5. The beneficiary should invariably arrange at least one outlet [sale depot] in the nearby city/town for marketing. 6. After availing of the bank loan, the beneficiary must raise the nursery consecutively for the period till the loan amount is liquidated. The costs may be worked out with necessary modifications to suit the local conditions of the scheme area and the physical programme as envisaged by the beneficiary. The labour wage assumed for this model scheme is Rs.50.00 per manday. The wage rate fixed by the concerned State Government for agricultural labourers under the Minimum Wage Act should be considered for preparing the cost estimate.

Sale price estimated [Average] : 1. Pot Plants Rs.65.00 each. 2. Bouquets Rs.40.00 each. 3. Seedlings a] Polybag Rs.5.00 each b] Ball Rs.25.00 per 100 nos. Maintenance cost (average) : Rs.76,500.00 p.a from year IV onwards. Economics : Cost of development Bank loan (85%) Margin money (15%) Rate of Interest Income (Rs.) : Yr. I 70875 BCR - 1.54 : 1.00 IRR - >50% Annexure A

= Rs.106400.00 only (1st year cost capitalised) = Rs.90,440.00 = Rs.15,960.00 = 12% p.a.

II 118300

III 150825

IV onwards 163725

Repayment Schedule for Model Scheme on Horticultural (Ornamental) Nursery Repayment of Principal Nil 15440 Interest Nil 21706 (Figs. in Rs.) Net Total Nil 37146 Surplus Nil 12854

Year

Bank loan (85%) 90440 -

Loan Outstanding 90440 90440

Interest @ 12% p.a. 10853 10853 + accumulated 10853 = 21706 9000 4200 34906

Net Income (-) 35525 50000

1 2

3 4 Total

90440

75000 35000 -

74325 87225 -

40000 35000 90440

9000 4200 34906

49000 39200 125346

25325 48025 -

Technical Digest Issue - 6

Articles

HORTICULTURAL EXPORTS WHY NOT FRESH FRUITS NATIVE TO INDIA ?

R.N.Hegde Growing awareness for vegetarian food and Ayurveda as alternate medicine in the developed world may open a new opportunity for trade in fresh fruits. US health department has laid stress to increase cereals, vegetables and fruits in their food intake and cut down consumption of meat. Europe is scared of mad cow disease and more and more people are showing inclination for vegetarian food nowadays. Under this situation, India has immense opportunity to increase her fruit production and export. Though developed world is producing horticultural products like vegetables, cut flowers and fruits like strawberry in plastic green houses they are unable to grow tropical fruit trees due to high costs under controlled conditions except Japan which has citrus orchard area of nearly 4000 Ha. under plastic houses. Green house vegetables, cut flowers and nursery production are a big industry in Western Europe, North America and Japan. However some countries have established their export trade on a strong foot. For instance: Mexico (Tomatoes to the U.S), Columbia (Cut flowers to the U.S), Israel (Flowers and vegetable to Europe), Kenya (cut flowers to Europe), Spain, The Canary Islands and Morocco (Vegetables to Europe). They have adopted hi-tech farm practices on par with competing producers in the developed world. Over the years these countries have built reputation as the reliable suppliers. These successful exporters have worked closely with partners, investors or importers in the developed c o u n t r y markets who continuously help the former to fine tune t h e i r production techniques to satisfy the stringent q u a l i t y requirements of these markets. Globalization of markets and distribution process has Mango - The Indian national fruit

An aonla growing family - Sharing the happiness of harvest

changed export scenario. New Zealand with 3 million people has 64 million heads of sheep and lot of grasslands and suitable climate for sheep rearing. Hence they could sell sheep meat to Europe. Salamon-farming in Chile has made great progress and it has now become fourth important export industry after copper, fish and fresh fruits. Israel has 900 mango growers with a production of 11000 tons of which only 4000 tons are sold in local market without packing whereas 7000 tons are put for value addition like grading, packing and labeling. Out of this value added mango produce 5000 tons are exported and rest is kept for local retail sales. Whereas India produces 11 million tons of mango but hardly 45000 MT is being exported with some value addition. Sometime this author wonders, when India has plenty of arable land, good water and almost round the year sunshine why cannot we produce fruits native to our own country and export? These fruits have been quoted in Vedas and revered by Indians. Now let us see which are these fruit trees native to India . Mango, Banana, Kagzi lime(popularly known as lemon), Ber(Chinese date), Aonla, Phalsa, Jackfruit, Bael, Karonda(Christs Thorn), Kokam and Jamun. The scientists consider these eleven crops belong to India but now spread all over tropical countries through travellers, invaders and settles over the period. It may also be said here for the sake of academic interest that following fruits have been brought to India from

Courtesy : Adike Patrike

Technical Digest Issue - 6 foreign land since ages and they have acclimatized so well that it is very difficult to believe that they are outsiders. For instance: Orange and Litchi from China, Sapota and Guava from Mexico, Apple from Asia Minor, Pineapple and Cashew from Brazil, Grapes Kokum fruit - A source of health drink from Caspian Sea Area, Pomegranate from Iran, Papaya and Custard apple from Central America, Fig from West Africa, Strawberry from North Pacific Coast, Tamarind from Tropical Africa. We must be very proud that though India has only 2% of worlds land area but she possesses 6% of worlds biodiversity, one third of which is found nowhere else. We are one of the top ten richest countries in biodiversity in the world. Some of the eleven Indian native fruits quoted here above, have become leading commercial fruit crop of the world outside India. Today banana has become a leading tropical fruit in the world markets with a highly organized and developed industry. After all, outside Hawaii, the U.S. does not grow bananas but several big US companies control big efficient banana plantations in Central and Latin America. Europeans import bananas on a large scale from their former colonies in Africa, the Caribbean and the Pacific, the present major banana growers for export. Mango, the National fruit of India, has a share of 60% of world production but not able to reach world markets on a large scale, due to various reasons. Today world mango production is equivalent to about 1/3 of world banana production. Now in mango exports we have competitors like Pakistan, Philippines, Israel, Mexico, Brazil, Peru, Chile, Nigeria, Kenya and South Africa. In some of these countries, thousands of hectares of mango have come up in corporate sector with a single variety, which give them advantages in post harvest management. Majority of Indian fruits have a potential to be sold in the developed world with Indian logo and branding them as exotic fruit from India. What are the qualities of these Indian fruits, which make them very special or exotic in the west? The mango is consumed as fresh and has a delicious taste, excellent flavor and used for juice, jams and tinned and dried products. Banana is considered as the most important energy producing food and is a source of mineral salts and vitamins. Lemon is the best source of health and beauty. The lemon juice taken in a glass of water added with a tea spoonful of honey in the morning helps to keep one slim. Aonla is one of the richest sources of vitamin C and it is used as ingredient in 135 Ayurvedic medicines. It has a potential to slow down graying and falling of hair. The aonla fruit tree is suitable even for wastelands particularly in salt affected soils. The fruit juice contains nearly 20 times as much as vitamin C in orange juice and a single fruit is equal in anti ascorbic value to two oranges. Ber is an important, most hardy fruit of dry lands on which sages lived during vedic period in India. Phalsa fruits make an excellent juice and squash. The Jamun fruits are very rich in iron and calorific value. It is reported that jamun fruits diminish the quantity of sugar in urine very quickly and in some cases even permanently. The kokam fruits have an agreeable flavour with sweetish acid taste. The fruits can be eaten raw and used in preparing syrups and squashes. Kokam has a potential to replace hydroxy citric acid , an ingredient used in many slimming medicines. Bael fruits have many medicinal properties and are effective in treatment in dysentery. It also makes an excellent squash. The trees are planted invariably near Shiva temples. Karonda is a hardy, t h o r n y evergreen shrub plant. The fruits are more useful in pickling, chutneys and for culinary purposes.

Jackfruit - One of the largest among fruits

Technical Digest Issue - 6 The jackfruit bears large fruits, which can weigh up to 40 kgs. The raw fruits are used for cooking and the ripened one for table purpose. What is required to make them popular abroad is to combine production process with professional marketing techniques on the lines of any consumer product by a MNC. Many of these fruits are not commercially grown at present like kokam, jamun and jackfruit on an orchard scale. On the lines of electronic export processing zones established in Mumbai and Cochin long back which are running very successfully, we may create specific fruit zones in India based on agro-climatic requirements where an integrated infrastructure could be created for production, processing, marketing and necessary logistics for a single fruit crop for export. Choice varieties, acceptable in the markets of Europe, the US and Japan may be brought for new cultivation. New techniques of production infrastructure like formation of Self-Help-Groups, high density planting, drip irrigation, Integrated Nutrient Management (INM) and Integrated Disease and Pest management(IPM) could be encouraged. Adoption of quality systems such as ISO 9000/Hazard Analysis and Critical Control Points (HACCP) for exports units is necessary. Establishment of vapour heat treatment facilities for elimination of pests for products especially like mangoes is essential to gain better access to overseas market. WTO regime coming in to existence since April 2001 and with the lifting of quantitative restrictions (QR) on imports of agricultural products, on the export front too, India has to face a great challenge to adhere to stringent quality, food safety norms and contamination factors like microbial and chemical besides tariff hurdles. Consumer education should get top priority. Marketing strategy for creation of Indias image through symbols, brand images for quality since they are understood better than written word. Cold chain from farm to shops in consuming centers is essential. More than anything else, enlightened and committed people for achieving the goals are important. Because if we see the example of Israel, countrys spirit made them today, a supplier of quality fruits to Europe. Horticulture research scientists, farmers, government organizations have to work in harmony. Let us hope India will emerge as a formidable force in the worlds tropical fresh fruit export market in the coming years.

Low Cost Fuel by Blending Diesel with Oil Extracted from plant
For several years folks in the tribal belt of Bastar have been using oil extracted from the plant jatropha curcas to run motor cycle and farm equipment instead of conventional fuels. Studies have shown the extract to be superior to diesel and petrol. And the vehicles do not need any modification in engines to be run on this alternative fuel. A task force in Planning Commission has now proposed to blend the oil extracted from this plant with diesel to bring down the emission levels, Dr. D. N. Tewari, who heads the task force on development of bio-fuels, says the blend could make diesel Euro/ Bharat III compatible and its cost is estimated to be Rs 14 per litre. The government would be able to achieve multiple goals livelihood for millions, green cover for wastelands, and in the longer term, a lower oil import bill and a cleaner environment, says Dr. Tewari. The task force has almost finalized an interim report on the benefits of the bio-fuel. The report would be circulated to the concerned ministries and PMO in a next few days. The final report would be prepared within a month, said Dr. Tewari. The task force estimates the introduction cost of bio-diesel at around Rs 17850 crore during Tenth five year plan period, with Rs 14000 to 15000 crore being spent on nurseries and wages for people employed. The balance would be spent on setting up seed procurement, oil extracting and blending centers. The plan would create arount 10 million employment. It is estimated that 5 tonne per hectare of seed can be harvested at the end of the first year and its cost is estimated at Rs 30000 per hectare. The oil recovery is estimated to be 30 40 %. Dr. Tewari says, Department of Foreign Investment and development (DFID) and Ford Foundation have already evinced interest to support the programme. (Source: The economic times: 22 November 2002)

Technical Digest Issue - 6

Articles

WATERSHED DEVELOPMENT NABARD INITIATIVES

Dr.B F Hulagur In the year 1980, ICAR had initiated a Model Watershed Development Programme involving 47 model watersheds located in various agroclimatic regions of India. These models have generated rich experience. NABARD in association with ICAR and ICRISAT took initiative in organizing a workshop to identify transferable technology in dry land agriculture at ICRISAT, Hyderabad during 1983. The workshop among other things, inter alia recommended that credit for dry land development should not be treated on par with irrigated agriculture. Sequel to this recommendation, a few Dry Land Farming(DLF) projects were started with credit support. During 1985, guidelines were issued for taking up watershed based dry land farming projects on a large scale. In 1987, NABARD initiated dialogue with the Development Commissioners/as one of the inputs for dryland development. In the same year cyclical credit to purvey much needed crop loan uninterruptedly was also launched in the states of Karnataka, Andhra Pradesh and Tamil Nadu. NABARD also issued several guidelines to promote credit for dryland development on watershed basis. The drought like situation during 1971 in Maharashtra, left indelible marks in the minds of prople. Several dedicated NGOs and people of the state took initiatives and developed replicable watershed models subsequently. NABARD is involved in Fund (WDF) was constituted in 1999 with a corpus of Rs.200 crores, with a contribution of Rs.100 crore from NABARD and GoI. A.Indo-German Watershed Programme (IGWDP) Development during phase-I, another grant for 25 million DM has been sanctioned for Maharashtra under Phase II. The negotiations pertaining to sanction of grant of 39 million DM for III phase are under advanced stage. Objectives: The ICWDP is one of the important projects being implemented through NGOs in Maharashtra with emphasis of participatory grass-root level development initiatives. The main objectives of the programme are as under: Integrated and comprehensive development of micro watersheds for achieving sustainable production. Mobilisation of human potential of rural communities in selected watersheds through village watershed committees (VMCs) and NGOs & mobilize the environmental resources of their area for survival. Supporting of the exchange of information and dissemination of experience amongst various NGOs working with the programme. Partners in the Programme: German : a) GTZ for Capacity Building Phase (CBP) and b) KTW for Full Implementation Phase (FIP) : a) VWC (Village Watershed Committee) for carrying out b) NGO (Non Governmental Organisation) to act as a guide and philosopher besides providing technical advise to the VMC; c) PC (Programme Coordinator) coordinates the programme at all levels and solves pending issues with government agencies. Till 31, March 2001 and PC for the programme was WOTR. From 1 April 2001 a PCU(Programme Coordinator Unit) with 1 member each from NABARD HO & RO and 2 members from WOTR has been formed to coordinate the programme. d) NABARD as legal holder and executing agency with supervisory and advisory role.

Indian

Introduction: During late eighties various voluntary agencies in the state approached donars in Germany with a request to provide funds for undertaking comprehensive water shed development works. The donars accepted to provide grants or watershed development and NABARD accepted the responsibility of a legal holder and executing agency with supervrisory and advisory role in this endeavour. In terms of bilateral agreement between Govt. of India and Govt. of Germany an assistance of 12 million DM has been sanctioned by KFW under phase-I for improving productivity of soils, crops and animals on watershed basis in state of Maharashtra. On the basis of success

Technical Digest Issue - 6 Phasing of Programme: a) Phase I - 9 years(1992-2000) b) Phase-II - 10 years (1997-2006) The programme has been extended to the states of Gujarat and Andhra Pradesh also in the third phase Major Principles of the programme will be given for preparation of Feasibility Report. For continuation of watershed treatments during Feasibility Report (FR) preparation an Interim Phase will be provided. The FR will be scrutinized and finalized to place it before Project Sanctioning and Steering Committee (PSSC) for sanction Monitoring of Projects: NABARD visits each watershed, both under Interim Phase (IP)and Full Implementation Phase (FIP), once in six months for monitoring. The monitoring study covers all aspects of technical nature viz. progress of project treatments, progress in implementation as per sanction and approved parameters, implementation from ridge to valley, suitability and effectiveness of various identified treatments and social nature viz. effective peoples participation in planning and implementation of the programme, contribution towards shramdan, maintenance fund, their meeting including VWC and gramsabhas. Certain minor problems of routine nature are generally solved during visit itself. For the watersheds which have been under implementation ro two to three years, a one day karyashala during monitoring visit was initiated to establish a link between villagers with bankers and officials of various government departments. Meetings: Coordination meetings, Project Sanctioning and Steering Committee, Programme Coordination Units meeting etc. are being conducted and attended by NABARD Review of Progress: All participating NGOs are required to submit half yearly progress reports to NABARD. A comprehensive review along with the half yearly progress inturn will be sent to KfW by NABARD. Workshops for NGOs: As an effort to purvey much needed credit to to the watershed dwellers workshops are conducted for the completed/nearing completion watersheds. During the workshop various issues are discussed with bankers/govt. departments. The information on various ongoing schemes of government, technological innovations in agriculture and allied activities, eco friendly and Indigenous Technology Knowledge (ITK) are also disseminated. Regular contact with VWC/NGOs/PCU/KfW: NABARD functions as a resource center for newer NGOs besides keeping a close contact with all implementing agencies and stake holders through one-to-one contact, correspondence, karyashala, workshops,etc. Credit support in Watershed Villages: With a view to

Participatory approach Development from Ridge to Valley Community contribution Social Fencing (Free grazing & tree felling) Women Development Integrated Sustainable Development Maintenance fund

5. Current Status No. of Watershed Projects: TOTAL: 101 projects (Details are as under) - Projects completed : 58 - Projects prematurely closed : 13 - Projects in Full Implementation Phase : 26 - Projects in Feasibility report preparation stage : 22 No. of NGOs involved so far : 59 No. of Districts covered so far : 22 Area covered under watershed project : More than 1,00,000 ha. Cumulative Grant disbursed under IGWDP:Rs.64.76 crores Functioning Selection of projects and implementation of Capacity Building Phase (CBP): An NGO, Watershed Organisation Trust (WOTR) is the nodal agency for CBP. The interested NGOs will select the village after assessing the project area and villagers. The data sheet of the entire watershed will be submitted to WOTR which will examine the technicalitiesof the watershed, if found suitable the data sheet and particulars of watershed will be submitted to NABARD for consent. After this the CBP process starts with four days mandatory shramadan of eligible families followed by various treatments as per the net plan. Sanction of grant for preparation of Feasibility Report and Finalisation of Feasibility Reports for Projects: After incurring an expenditure of 60% of the sanctioned amount in CBP the projects will be evaluated for the readiness to take up Main Phase and permission

Technical Digest Issue - 6 fulfill the increased credit needs of villagers in treated watersheds NABARD has embarked upon preparation of banking plans for the watershed villages. Opportunities for Bankers in IGWDP Watersheds Capital formation in the form of on farm and non-farm investments is necessary in villages of IGWDP watersheds. Lending risks are considerably reduced due to IGWDP project activities. Banks can do good business by addressing the credit needs of the watershed dwellers through participatory approach. Branch managers can prepare individual watershed credit plans by involving watershed community, VWC members NGO. This will help the watershed community to derive monitary benefits from newly created investment potential in the form of community to derive monetory benefits from newly created investment potential in the form of increased availability of ground water, development of soil fertility as also increased quantity of fodder/biomass. Dairy activity in particularly picking up in all watersheds apart from credit requirements for renovation of old wells, pump sets, small pipelines, drip irrigation and other activities. Crop loan requirement has increased several folds due to increase in cropping intensity and introduction of high yielding varieties (HYV) and hybrids of crops. The increase income level of community will help to encourage thrift habit of the community. Further, a lot of SHGs have been promoted in the watershed villages. Much of the funds of watershed maintenance fund corpus may have to kept in secured deposits in banks. There is a lot of scope for increasing deposit business of banks in the watersheds. The SHGs have matured / maturing in their working and women empowerment has taken place due to IGWDP implementation mainstreaming of gender involvement in watershed project strategy. The women SHGs are practicing internal lending. The SHGs are not only gaining experience in funds management but also ensuring 100% recovery of internal loans. These women SHGs are also managing sizable IGWDP project funds for drudgery reduction and income generation activities through their Sanyucta Mahila Samiti (Federation of SHGs). The SHGs are also borrowing micro-finance from other agencies. Hence, the SHGs of watershed villages can become good clients of banks, if linked for credit under SHG-Bank linkage programme with pro-active and helping initiative of the concerned bank branches. VMCs over a period of 4-5 years are empowered and have gained experience handling public funds. During the process they have also lerntaccounting book and record keeping. For graduating VWCs as financial intermediaries NABARD has also initiated a pilot project of purveying credit through VWCs. Banks operating in the watershed villages can take advantage of the Vikas Volunteer Vahini(VVV) Programme of NABARD and actively promote Farmers Clubs to further linkage strengthen the linkage of their bank branches with watershed villages and thus truly promote Development through Credit. Opportunities for Government Departments/ Agencies Watershed development under IGWDP made efforts to create basic potential (like conservation of soil fertility, recharge of ground water, increase in fodder availability etc.)which need further impetus to harvest the benefits from the assets created under the programme During the implementation period so far, significant productive potentials have already been created in some watersheds through effective soil and moisture conservation measures. There is a remarkable improvement in groundwater table and vegetative treatments including grass seeding which has led to an abundant availability of forage, legume and fodder grass. The cropping pattern changes and better irrigation potential will further increase green and dry fodder availability. There is a urgent need for proper extension support especially for dairy activity and judicious development of water resources as also evolving a sustainable cropping pattern through transfer of appropriate farm technology packages including promotion of short durationed, water efficient and more remunerative high yielding varieties of crops/ and hybrids. Popularization of advanced irrigation systems like drip and sprinkler, farms awareness training, etc., may help to harvest the benefits from the basic potential created in watershed. Further, provision of veterinary services, training for livestock management, dairy linkage, etc., may also create a conducive atmosphere for proper use of fodder available in watershed and for sizable supplementary income to watershed dwellers. Agro processing for value addition also provide scope for attracting better price farmers produce. The line Departments of Government specially agriculture can play a crucial role in this regard.

Technical Digest Issue - 6

State

No.of districts

No. of Watersheds sanctioned

No.of NGOs/ PFA

GeograPhical Area (Ha)

Area Under CBP(Ha)

Grant sanctioned (Rs.)

Andhra Pradesh Gujarat Jharkhand Karnataka Maharashtra Orissa Rajasthan Tamil nadu Uttar Pradesh West Bengal Total

6 6 1 17 8 4 7 5 3 6 63

20 18 2 33 41 6 11 9 25 10 175

11 7 2 12 15 6 3 7 4 5 72

22,911.4 19,731.95 1,791 34,315.25 41,499.2 4,626.02 12,683 7,325.82 23,945.82 6.196.53 175,024.97

1,611.22 1,855.19 130.6 2,170.84 4,065.16 343.94 960.62 2,170.75 2,170.75 610.7 15,679.86

9,335,372 16,093,485 836,100 14,104,644 20,259,912 1,572,861 4,472,035 12,158,052 12,158,052 3,605,448 86,904,350

The main aim of this programme is to create replicable models of watersheds which act as demonstration units for undertaking the watershed development works on a large scale. Introduction: Consequent upon the announcement by the Honble Union Finance minister during budget for 1999-2000. NABARD has established a Watershed Development Fund (WDF) with a contribution of Rs.100 crore. A matching unfront contribution of Rs.100 crore has been made by the Government of India. The success of Indo-German Watershed Development Programme (IGWDP) unify the multiplicity of watershed programmes and treat the programme as highly participatory and through the involvement of village communities, gram panchayats and NGOs. The principles and other aspects of this programme is similar to that of Indo-German Watershed Development Programme. Both grant and Loan components to the state governments is involved in this programme. Ten states namely Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh and West Bengal are implementing the programme. The status of WDF is given in following table. Under WDF, Government of India desired that State governments are involved alongwith NABARD in

implementating the programme. From CBP stage onwards the projects are being monitored by NABARD. NABARD and State Governments together monitor the progress in implementation of the projects during Full Implementation Phase. Increased responsibilities are bestowed upon state governments during the main phase. Impact: IGWDPs success in Maharashtra proved that comprehensive watershed development with peoples participation is a feasible proposition and can be viewed as an efficient and effective way of not only restoring the environment and its productivity but also of addressing poverty directly and on more sustainable basis. Based on success of IGWDP, Government of India (GoI) has announced formation of Watershed Development Fund (WDF) in the UnionBudget of 19992000. Government of India has included the core principles of IGWDP like Shramdan, CBP, Maintenance Fund (MF) in NWDPRA. Common guidelines developed by GoI are mostly on the basis of IGWDP experience. Government of Maharashtra also has issued a GR advocating the employment of IGWDP experience in implementing DPAP and IWDP.

Technical Digest Issue - 6

Articles

PEARL CULTURE - EMERGING INVESTMENT AVENUE

M.A.Upare and K.S Maya Devi Introduction Pearl has a history more fascinating and more regal than any other gem. Pearls from India are known from time immemorial. Admired all over the world as the finest of Oriental Pearls they were in high demand all over the world. However natural pearl resources in India as in other parts of the world have depleted and pearl fishery was stopped in India about four decades ago. There is a huge gap between production and demand and the only option left is culture of pearls. The world trade of cultured pearl is reported to be over US$ 3 billion per year. The major pearl producing countries are Australia, Tahiti, Indonesia, Japan and China. India is one of the major importers of pearls importing pearls worth US $ 4 million every year to meet the growing domestic market demand. India has a wealth of marine pearl producing oysters and fresh water pearl mussels. Pearl producing oysters in India are Pinctada fucata in Gulf of Mannar, Palk Bay and Gulf of Kutch and P.margeretifera in Andaman and Nicobar Islands. Fresh water pearls have been successfully produced in three species of bivalves, viz., Lamellidens marginalis, L. corrianus and Parreysia corrugata. Japanese Akoya Pearls

mussels need to be reared in natural pond environment. b. In case of marine pearl oyster culture, farming can be either on farm or off shore/open sea. Off shore culture can be of different types: Floating Raft, long line systems or racks fixed on stacks. Floating Raft Culture In this system, the oysters are placed in box cages of 40/40/40 cms. and suspended from the raft at 5m depth in the sea. All the cages containing implant oysters are stitched with velon screens of 1.5 mm mesh at the bottom to prevent the rejected nuclei from falling into the water. In a box cage, 85-100 oysters of the size 4045 mm can be accommodated. The cages are numbered with aluminum/plastic plates. Once in two months the cages are lifted to remove the predators from the cages. The duration of post operative culture varies from 4-18 months depending on the size of nucleus and maturity of the pearls. These floating rafts are used for farming oysters in the open sea. Fixed Rafts In shallow sheltered bays racks are employed. In rack system which is a fixed culture, teak wood polls are driven vertically into the sea bottom and the rack is constructed by lashing horizontal and cross polls on them with coir ropes at a convenient height of 0.5 m above

Central Marine Fisheries Research Institute (CMFRI) has standardized the technology of culture of marine pearls and Central Institute of Fresh water Aquaculture (CIFA), that of freshwater pearl. Hatchery technology of P.fucata has also been successfully developed. A number of entrepreneurs in Orissa, West Bengal, Andhra Pradesh and Maharashtra have adopted the technology of Fresh water pearl culture and a Few projects with institutional finance and NABARD refinance have taken up in Andhra Pradesh for producing marine pearls. It is only a humble beginning and there is need for more concerted efforts for developing pearl culture in India. Pearl Culture Technology The culture of pearls involves the following steps. culture 1. Collection and conditioning of native pearl mussels 2. Surgical implementation of mantle grafts and appropriate nuclei in the internal organs of the recipient mussel 3. Post operation care of the implanted mussel. a. For fresh water pearl mussel culture, implanted

Technical Digest Issue - 6 the water level so that the rack thus erected remains always above the water. The oyster cages are suspended from the wooden frame. Institutional finance for pearl culture Pearl culture is an eligible activity for bank finance and NABARD refinance. For pearl culture NABARD provides refinance facility to eligible institutions like State Cooperative Agriculture and Rural Development Bank (SCARDB), Regional Rural Banks, Commercial Banks, Agriculture Development Finance Corporation (ADFC) and other financial institutions approved by RBI. The loan is up to a period of 15 years. The ultimate beneficiaries of the investment finance may be individuals/partnership firms, companies, state corporations or cooperative societies. Items of investment The following items of investment are eligible for financial assistance from banks a. Capital Investment: Cost of land Land and site development : clearing,leveling, fencing Building and civil works : (Preparation ponds / tanks, bunds, feeder canals, drains, sheds, generator rooms, pump house, inlets/outlets, diffuser tanks, office building, water intake system, internal approach roads) Plant and machinery: Motors, Generators, Iron stands, Fibre cages, Vehicles Preliminary and preoperative expenses Technical know how fees Deposit for electricity construction of rafts, racks,stacks, cages, longlines, anchors b. Recurring expenditure/Working capital Cost of seed, feed, nuclei, surgery charges, harvesting charges, fuel/electricity charges, repairs and maintenance of plant and machinery, maintenance of civil works, staff salaries, administrative expenses, processing charges, laboratory equipments. Pearl culture and Rural Development. CMFRI and CIFA have over the years adopted an open policy of training. Dr. Richard Fassler, a world authority in pearl culture remarked that while all countries are secretive regarding their pearl culture technology, India is the only country, which has an open training programme. The marine pearl culture for rural upliftment through participatory approach was successfully carried out at Vallinokkam, a small coastal village of Tamil Nadu in South east coast of India. Following the success of this experiment, the M.S. Swanithan Foundation has embarked on an ambitious rural programme in the coastal villages of Gulf of Mannar to create alternative livelihoods and additional source of Income for the poor fishers. The programme with the technical know how from CMFRI is aimed at sustainable management of the fishery resources as well as conservation of the biodiversity of the Gulf of Mannar. Fresh water pearl culture has been successfully tried in some states along with fish culture. Constraints for commercialization Pearl farming on commercial scale failed to catch the interest of entrepreneurs in a large scale,though the technology of marine pearl production was successfully developed as early as in 1973 and fresh water pearl production in 1989. Even where pearl culture was commercially adopted, the returns were very low. The reasons have been attributed to ecological condition of the seas around Indian coast, scarcity of the protective bays, roughness and heavy wave actions of the open sea, heavy silt conditions in some areas which resulted in increased mortality of oysters and the absence of high primary production . The recurring expenses and the high labour involved is yet another reason for low returns. The rate of rejection of nucleus and relatively low survival rate of implanted oysters in India make pearl farming less remunerative to be taken up. The quality and size of pearls now produced in India do not fetch very high price in the international market. Large pearls have superior value. The technology for producing the steel black pearls from the black-lip pearl oyster, Pinctada margaritifera predominant in Andamna & Nicobar islands has to be developed in India. Pearls produced by giant pearl oyster P.maxima is only next in price to Black pearls. Myanmar is one of the leading producers of these pearls. We share a common sea with Myanmar. Survey has to be done to locate P. maxima beds and if not available P.maxima need to be transplanted to our waters to produce quality pearls. At present we are depending on imports of nuclei from American fresh water mussel shell for implantation. Imported shells are costly. Indigenous production of high quality nuclei will help in reducing the production cost of pearls. All these issues need to be addressed for commercialization of pearl culture. Initiatives needed In an era of globalisation it is imperative to improve productivity in terms of quality and quantity of pearls produced in India. Considering demand in domestic and International market the following initiatives are identified for developing pearl culture activity as an industry i. Mapping of suitable sites for pearl farming ii. Genetic selection experiments to produce oysters with larger depth, faster growth and good quality nacre. iii. Appropriate leasing policy iv. Participation of local fishermen v. More awareness programmes. vi. Coordinated efforts of all stakeholders. vii. Demonstration regarding economic viability of the project

Technical Digest Issue - 6

Articles

RENEWABLE SOURCES OF ENERGY: POTENTIALS AND ACHIEVEMENTS

S.K. Patra and P.P.Datta 1. Introduction: 1.1 In todays energy crisis, it is recognized that renewable energy sources can be the alternable sources of energy to provide the basis for sustainable energy development on account of their inexhaustible nature and environment-friendly features. India is endowed with abundant sunlight, wind, water and biomass to act as renewable sources of energy and over the last two decades vigorous efforts have been made to tap these renewable energy sources for a variety of end use applications i.e., cooking, water heating, drying, water pumping, lighting, power generation etc. and for meeting the decentralized energy requirements both in villages and urban areas. India today has the worlds largest programme for renewable energy. 1.2 During the last two decades, several renewable energy technologies have been developed and deployed in villages and cities. The Ministry of Non Conventional Energy Sources (MNES), established in 1992, and there before known as the Department of Non Conventional Energy Sources (DNES) i.e. from 1982-1992, a separate ministry created under Govt. of India, is playing a major role in promoting and developing various renewable energy technologies in the country. Indian Renewable Energy Development Agency (IREDA), the financial wing of the said ministry, is also playing a key role by providing monetary support towards operationalization of programmes and policies of the ministry. Apart from it, various extension agencies, R&D institutes and financial organizations are also actively involved in accelerating the pace of development to meet the emerging needs. The technologies being developed and propagated are improved chullhas, biogas plants, biomass gasifiers, solar thermal and solar photovoltaic systems, energy recovery from urban, municipal and industrial wastes, hydrogen energy, ocean energy, fuel cells, electravans and gasohols. 2. Sources of renewable energy: 2.1 Renewable sources of energy can be defined as those sources of energy, which are renewed and can be tapped for an infinite time period without exhaustion or depletion in the potentiality of the source to provide power. 2.2 Sources achievements: and energy: 1. Wind 2. Biomass 3. Biogas 4. Solar 5. Hydro 2.2.1 W i n d Power 2.2.1.1 According to a recent study, the gross wind power potential has now been estimated to be about 45,000 MW at 50mtr. hub height. Against the same, the total installed capacity in the country by the end of 1999-2000 stood at 1167 MW. Among the renewable sources of energy, this source has been exploited to the maximum in view of the comparatively simpler technology and ease of operation. 2.2.1.2 India now ranks 5th in the world after Germany, USA, Denmark and Spain as regards installed capacity is concerned. Commercial projects have so far been established mainly in Tamil Nadu, Gujarat, Andhra Pradesh, Maharashtra and Karnataka. The largest installation of wind power turbines in the country so far is in the MuppandalPerungudi area of Kanyakumari in Tamil Nadu, with an aggregate capacity of about 400 MW. The highest capacities so far have come up in Tamil Nadu (720 MW), followed by Gujarat (167 MW). 2.2.1.3 In order to give impetus to the wind energy sector in the county, MNES has issued comprehensive revised guidelines in 1997. The Guidelines relate to preparation of Detailed Project Report (DPR), micro siting, selection of wind turbine equipment, operation and maintenance, performance evaluation, etc. These have helped the State Electricity Boards, State Nodal Agencies, manufacturers, developers and investors about planned development and implementation of wind power projects. Apart from the same, promotional policies such as accelerated depreciation, tax holidays, soft loans, custom and excise duty reliefs, liberalized foreign investment procedures etc. have been announced by MNES. Moreover, the concept of Wind Energy Estates, a joint sector initiative with the participation of the private sector, State Governments and MNES/IREDA has been proposed by MNES. A large number of demonstration projects with aggregate of 55 MW have also been established in the country at 25 different locations. 2.2.1.4 Today India has about 15 manufacturers engaged in the production of Wind Energy Generators (WEGs). The annual production capacity of the domestic WEG manufacturing industry in the country is about 500 MW. Besides, there are foreign companies who are also providing the technologies. Inspite of all the above, the progress of the sector is tardy and concerted efforts are needed to identify the bottlenecks and tie the loose ends to give

Power from the renewables are generally derived from the following sources of

Technical Digest Issue - 6 impetus to the programme. 2.2.2 Biomass power 2.2.2.1 Biomass Power/ Co-generation programmes promote utilization of biomass such as straw, stalks, stems and fines, agro-industrial processing residues such as shells, husks and deoiled cakes, forestry residues and woody biomass grown in specially dedicated energy plantation, for power generation through conversion technologies (viz. combustion, gasification, incineration, pyrolysis etc.) using gas/ steam turbine, dual fuel engine/ gas engine, or combination thereof, either in power alone or in cogeneration (of more than one energy forms- steam and power mode). The progress made in harnessing the Biomass power is as follows: Table-I Items Year Target (MW) Achievement (MW) 25.00 86.00 VIII th plan 45.00 41.50 40.00 43.50 IX th plan 1997-98 1998-99 1999-2000 2000-2001 40.00 51.00 60.00 NA and Utilization Technology. The National Project on Biogas Development (NPBD) was started in 1981-82 with the following objectives: 1. Providing fuel to rural households for cooking purposes. 2. Organic manure for application in agricultural fields 3. Mitigating the drudgery of rural women 4. Reducing the pressure on forests 5. Recycling human waste by linking toilets with biogas plants, thereby improving sanitation. The Community and Institutional Biogas Development Programme was initiated in 1982-83, with the scheme for setting up of night soil based plants in community toilet complexes being added in 1993-94. It was started with the objective of recycling the large quantity of cattle dung available in the villages for the benefit of the weaker sections of society. The biogas generated is generally used for meeting the fuel requirements of motive power and electricity in addition to meeting cooking gas needs of the rural populace. Through the programme: 1. Indigenously developed models of biogas plants, namely floating drum type and fixed dome type of bio-gas plants are being popularized. 2. Central Financial Assistance, including Central Subsidy, turnkey job fee, service charges or staff support, training and publicity support, etc. are also being provided. Research and development on biogas is taken up in the identified thrust areas, such as: 1. Studies in the field of microbiology, biochemistry, and engineering for increasing the yield of biogas, especially at low and high temperatures. 2. Development of cost effective designs of biogas plants, and using alternative building material and construction methodology for cost reduction. 3. Diversified use of digested slurry for value added products, etc. 2.2.3.2 Cumulative achievement The total potential of 12 million biogas plants exists in the country. The achievements at the end of the FY 1999-2000 indicate: 1. 3.28 million rural families have been benefited, indicating coverage of 27% of the total potential of biogas. 2. About 3600 night soil based and institutional biogas plants have been set up. 3. Research and development projects have been taken up to develop new designs and improve operational efficiency of the biogas plants. These plants have helped in saving 42 lakh tones of fuel wood and in producing 430 lakh tones of manure equivalent to 9.5 lakh tones of urea per year. In addition an estimated 5.5 million person-days of employment has also been generated in rural areas. 2.2.4 Solar Power 2.2.4.1 India is a solar rich country. Realizing the importance that solar power can play in supplementing the power requirement in the country, MNES has come up with the following measures:

Source: MNES, GoI, New Delhi NA: Not Available 2.2.2.2 The MNES, GoI has taken a large number of initiatives in development and promotion of Biomass Power. Some of the measures taken are as follows: i. MNES has launched the National Biomass Resource Assessment Programme (NBRAP) to cover all states and union territories with the objective of providing inputs for preparing National Biomass Resource Atlas. ii. A Lead Programme Partnership Initiative has been launched for facilitating commercial Biomass Power / Co-generation projects. iii. The MNES has also provided support to the limited Demonstration Co-generation projects in Cooperative / Public Sector Sugar Mills through Joint Venture Companies (JVC) set up by state govt. or IPP mode projects. iv. Fiscal incentives such as concessional custom duties, exemptions of excise duties and central sales tax, tax holiday, accelerated depreciation etc. are being provided to the developers. 2.2.3 Biogas

2.2.3.1 In the country the development of Biogas is being under taken through the centrally sponsored Biogas Development Programme (BDP), which commenced in the year 1981-82. The Biogas development programme has got three main components namely i. National Project on Biogas Development (NPBD), which also caters to the family type biogas plants. ii. Community, Institutional and Night Soil based Biogas Plants (CBP/ IBP/NBP) programme. iii. Research and Development on Biogas Production

Technical Digest Issue - 6

MNES is setting up a number of solar observatories especially in the solar rich areas of the country with a view to collect data on sunshine hours, global solar radiation, direct and diffused solar radiation on normal surface, ambient temperature, humidity rainfall etc. It is proposed that these data can be considered for implementation of large solar power projects in the country. MNES is also implementing grid interactive solar photovoltaic power projects in the modules of 25KW for voltage support application to the rural grid in rural areas and roof top peak saving application in urban centers. The scheme is being implemented through the state electricity boards, state nodal agencies and private entrepreneurs. So far under this scheme, 17 grid-interactive solar photovoltaic power projects aggregating to 1165 KW power capacity have been installed in 8 states and 2 union territories. Another 8 projects aggregating to 500 KW power capacities in 5 states and 2 union territories are under installation. A Solar Photovoltaic (SPV) Programme is also being implemented for the last two decades which has the following components: n Solar Lanterns n Home Lighting Systems n Street Lighting Systems n Non Grid connected SPV Power Plants n Refrigerators for medicines and vaccines n Other applications of PV technology including new applications As on 31st March 2000, 2,78,335 solar lanterns, 1,16,775 home lighting systems and 38,916 street lighting systems have been distributed / installed. In addition, stand alone SPV power plants of more than 1 MW aggregate power capacity have been commissioned or are under installation in the country. 2.2.4.2 In order to promote the SPV technology, the MNES is providing Financial Assistance towards the sale/ installation of SPV systems. The pattern of financial assistance being provided is as follows: Table-II Pattern of central financial assistance S.No. SPV systems 1 Solar lanterns 2 Home lighting systems / solar home systems 3 Street lighting systems 4 Central subsidy Rs. 1500/- (fixed) Rs. 6000/- or 50% of the ex-works cost, whichever is less Rs. 12,000/- or 50% of the ex-works cost, whichever is less SPV power plants Rs. 2,00,000/- per kW / other systems of PV array capacity or 50% of ex-works cost whichever is less. Service charge Rs. 100/-

2.2.5

Hydro Power

2.2.5.1 Small hydropower programme is one of the thrust areas of the MNES. In order to promote activities in this sector and to exploit the Small Hydro Power (SHP) potential in the country in a systematic manner, the ministry has adopted a multi pronged strategy. Among the major initiatives taken in this regard are: i. Identification of potential sites and their feasibility studies. ii. R&D cum demonstration projects with new and innovative approach; and iii. Technical and financial support to states to set up grid-connected as well as decentralized small hydro projects. MNES has created a database for the potential sites suitable for small/ mini/ micro hydel projects by collecting information from various sources including the state governments. The database now includes 3349 potential sites with aggregate capacity of 2852 MW for projects upto 3 MW capacity and 662 identified sites with aggregate capacity of 5519 MW for projects of 3-15 MW. 2.2.5.2 As part of the R&D cum demonstration projects with new and innovative approach, schemes for portable micro hydel sets and scheme for development/upgradation of water mills have been launched by the Ministry. Under the scheme for portable micro hydel sets, light weight portable micro hydel sets upto 15 KW are being distributed in the hilly areas and north eastern regions of the country for providing decentralized power supply. The ministry is meeting the full cost of the sets where as the cost of civil works and transmission links are borne by the local bodies/ communities concerned. The other financial incentives being provided under the programme are as follows: Table -III Category of water mills Promotional incentives 1. Water mills with : Rs. 30,000 or 75% mechanical output of actual cost, facility only whichever is less 2. Water mills with : Rs. 60,000 or 75% electrical output of actual cost, facility only whichever is less 3. Water mills with both : Rs. 60,000 or 75% mechanical and of actual cost, electrical output whichever is less facilities Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012 2.2.5.3 As part of technical and financial support to states to set up grid-connected as well as decentralized small hydro projects, the MNES has introduced an interest subsidy scheme through financial institutions. Till 1999-2000, under this scheme, sites with total potential over 1900 MW have been offered for commercial usage. Interest subsidy is available for Small Hydel Projects (SHPs) upto 25MW. Some of the important incentives provided under the scheme are as follows:

Rs. 200/-

Rs. 10,000/-

Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012

Technical Digest Issue - 6 Table IV For SHP projects in Hilly Area, North Eastern States, Sikkim and Andaman and Nicobar Islands Capacity of SHP projects Upto 1 MW Interest subsidy Eligible capital cost ceiling Interest subsidy support ceiling 7.5% Rs. 6.00 crore per MW Rs. 1.25 crore Above 1 MW and upo 5 MW 5% Rs. 6.00 crore per MW Rs. 4.00 crore Above 5 MW Above 15 MW and upto 15 MW and upto 25 MW 3% Rs. 5.00 crore per MW Rs. 6.00 crore 2% Rs. 5.00 crore per MW Rs. 7.00 crore

Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012 Table V For SHP projects in other areas Capacity of SHP projects Upto 1 MW Interest subsidy Eligible capital cost ceiling Interest subsidy support ceiling 5% Rs. 5.00 crore per MW Rs. 0.75 crore Above 1 MW and upto 5 MW 2.5% Rs. 4.00 crore per MW Rs. 1.50 crore Above 5 MW and upto 15 MW 2% Rs. 4.00 crore per MW Rs. 3.50 crore Above 15 MW and upto 25 MW 1.5% Rs. 4.00 crore per MW Rs. 4.00 crore

Source: Background Note for Annual Renewable Energy Conference on Policy Prospectives-2000-2012 3. Potential & Achievements: Source / System Energy Parks Wind Pumps Hybrid Systems Solar PV Pumps Solar Photovoltaic Power Solar Cookers Energy recovery from wastes Battery operated vehicles Approximate Potential Achievement (as on 31.3.2000) 190 nos. 640 nos. 88 KW 3062 nos. 1310 KW 4,74,674 nos. 1700 MW 15.74 MW 227 nos.

The estimated potentials via-a-vis achievements in the Renewable Energy Sector in the country as on 31st March 2000 is as follows: Table-VI Source / System Biogas plants ( No.) Improved Chullhas (No.) Biomass power and Bagasse based Cogeneration Biomass Gasifier Solar Photovoltaic Approximate Potential 120 lakh 1200 lakh 17,000 MW 3500 MW 20 MW/ sq.km. Achievement (as on 31.3.2000) 29.78 lakh 320 lakh

Solar Thermal Solar Water Heating Systems Collector Area Wind Power Small Hydro Power (upto 15 MW) Integrated Rural Energy Programme

35 MW/sq.km. 30 million sq. m 4,67,692 sq.mtr. 45,000 MW 10,000 MW

222 MW 35 MW 50 MW equivalent (about 7.0 lakh Individual Systems) 1167 MW 216.97 MW 860 Blocks (old)

MW= Mega Watt KW= Kilo Watt sq. km = Square Kilometer Source: Ministry of Non Conventional Energy Sources, Govt. of India, New Delhi 4. Common incentives and policy framework for renewables Activity specific incentives were discussed under each source of energy, however only common incentives are discussed here. 4.1 Renewable Energy Technologies in India are being promoted through R&D, demonstration projects, dissemination projects/ programmes supported by government subsidies and fiscal incentives outlined

Technical Digest Issue - 6 below: From Central Government 1. Income tax holiday 2. Accelerated depreciation 3. Concessional custom duty/ duty free import 4. Capital / Interest subsidy From State Governments 1. Energy buyback, power wheeling and banking facilities. 2. Sales tax concession/benefits 3. Electricity tax exemption 4. Demand cut concession offered to industrial consumers who establish power generation units from renewable energy sources. 5. Capital Subsidy. 5. Organizations involved in extension work 5.1 Organizations at Central and State Level At the national level, MNES is playing an important role in designing the policies and guidelines for giving a firm direction to the development of renewable sources of power. IREDA, a centralized agency and the financial wing of the ministry is playing an active role by financing the policies and programmes of the ministry for popularization and development of new innovative technologies as well as for operationalization of renewable energy projects. Financing of the various renewable energy prgrammes at the state level is being done by the concerned state nodal agencies such as Gujarat Energy Development Agency (GEDA) in Gujarat and Maharashtra Energy Development Agency (MEDA) in Maharashtra etc. The state departments of Agriculture and Agro Industries Corporation of various states are also playing a key role in dissemination of information about availability of low cost indigenous technologies and popularization of the same. 5.2 R&D, Private and Non Governmental Institutions and Private Manufacturers of Energy Harnessing Equipments Research and development of new, innovative, low cost and indigenous technologies play a key role in harnessing power from various renewable energy sources. Various institutions like the IITs, RECs, and the state level agricultural universities are involved in development of low cost innovative renewable energy technologies. The Indian Council for Agriculture and Research (ICAR), a council under governorship of the Ministry of Agriculture, through its research institutes like CIAE, CIPHET, CIRCOT etc. are also developing new technologies and are making earnest efforts in propagating the technologies. The private institutions are also playing a key role in process documentation and research and development of renewable technologies. Some of the important agencies are the Tata Energy Research Institute (TERI), Centre for Science and Environment (CSE), M.S. Swaminathan Foundation etc. Nongovernmental agencies like the DHAN Foundation, Ramakrishna Mission Loksiksha Parishad, AnARde Foundation etc. are also making worthwhile efforts in the development and promotion of renewables in the country. Private manufacturers of renewable energy harnessing equipments are also playing a key role in the development of renewables in the country. 5.3 Banks, international funding agencies and other financial institutions Various banks and international financial institutions are also involved in financing the development and dissemination of improved renewable energy technologies. Some of them are the World Bank, Asian Development Bank, US Exim Bank etc. The World Bank had provided international assistance amounting to US $ 275 Million to IREDA for the development of renewables in the country. Likewise ADB has also provided financial assistance to the tune of US $ 100 million to IREDA for the abovementioned purpose. Apart from the same, various international funding agencies like the Royal Netherlands Embassy (RNE), DANIDA, UNDPs GEF Fund and KfW from Germany have provided international financial assistance to the tune of 18 Million Dutch Guilders, US $ 15 Million, US $ 5 Million and DM 120 Million till date to IREDA for development of renewables in the country. NABARD being the apex agricultural and rural development banking institution in the country has got a prime responsibility in the development of renewable energy technology in the country. Some of the important contributions made by NABARD in this sector are as follows: 1. NABARD has been promoting the development of renewable energy sources in the country in a big way. Refinance is invariably being provided for installation and commissioning of Biogas units in the country. Apart from the same, NABARD also supports Solar Photovoltaic (SPV) centrifugal pumpsets for on-farm irrigation purposes, solar cookers, wind mills, briquette making unit etc. under the renewable energy programme. 2. It has been providing grant and other financial assistance to premier research institutes/ NGOs etc. from its Research and Development Fund for carrying out applied research activities in the field of ecofriendly renewable energy technologies. 6. Summary MNES, IREDA, and its state level nodal agencies are making a holistic approach aimed at tapping the renewable sources of energy. The task in hand is a gigantic one. Though numerous success stories are there in the field, a lot still remains to be done. The areas where more attention is required for a sustainable growth in the sector are technology development and deployment, quality assurance, fiscal and promotional incentives, credit infrastructure, legislative and infrastructural support, human resource development and institutional development. Therefore, an integrated approach involving the govt. departments, local level extension agencies, financial bodies, R&D institutes is required with proper delegation of power for success of the programme.

Technical Digest Issue - 6

Articles

FINANCING RURAL POULTRY PRODUCTION ACTIVITIES IN INDIA

Dr. K.R. Rao and C.O. Reddy 1.0 Introduction

Rural Poultry Sector though contributing nearly 30% of the national egg production, is the most neglected one. The fact is that village poultry eggs and meat fetch a much higher price than that of commercial poultry. However, 70% of the poultry products and eggs are consumed in urban and semi-urban areas and their consumption in rural areas is very low. This low consumption is attributed to limited availability and to some extent poor purchasing power of rural people. In order to overcome this problem, it may be necessary to take up specific rural poultry production programmes with low input technology to meet the requirements of the rural sector where the poultry farming constitute a source of subsidiary occupation, generating subsistence income to boost the nutritional standards, income levels and health of rural masses. The rural poultry (backyard poultry) units require very little hand feeding and provide handsome returns with minimum investment. Thus rural poultry farming not only generates income levels, employment opportunities to small farmers including women but also bring about desired socio-economic change in rural areas which are vital for rural development and rural prosperity. The Department of Animal Husbandry and Dairying, Government of India has proposed to study the existing scheme on poultry marketing in rural areas for inclusion under the proposed venture capital fund of the Department for the X plan period. Accordingly, a committee was constituted to study the rural poultry units in selected states with the following terms of reference. To study the present situation of rural poultry units in selected state. To study the concept of rural poultry units and the backward and forward linkages. Identification of potential areas and new investments for assistance under rural poultry units activities. To study the incremental income of those families associated with rural units. To work out model economics for popularizing the rural poultry units on the country side. 2.0 Study Area

Mother Unit
3.0 Data Collection and Compilation Primary data on cost of chicks and feed purchased, expenditure on medicines, electricity and other related aspects from the farmers, number of birds purchased and sold, supply of feed, medicine and other services provided by the dealers to the mother (Brooding) units and the information on the number of birds sold by the vendors, their area of operation, investment and maintenance expenses and other related parameters were collected from the respective people directly. 4.0 Present Scenario of Rural Poultry Units

As considerable work was done by Keggfarms Pvt. Ltd., Gurgaon in Eastern Uttar Pradesh and West Bengal, the study was taken up in the selected districts of these states and visited mother (brooding) units, dealers, vendors and rural poultry units in these two states.

The rural households were normally maintaining the desi birds under scavenging conditions. However, it was observed that in some of the areas especially in tribal areas and villages predominantly with Muslim population, rearing of a few strains of coloured birds introduced by Government as well as private agencies. Department of Animal Husbandry has taken up in association with Indian Council of Agricultural Research a targeted programme for upgradation of low input technology birds through their All India Coordinated Research Project on poultry and have since developed and released birds like Vanaraja, Krishibro, Krishilayer, Caribro, Carired, etc. for rural poultry activity. During the year 2001-02 the Govt. of India had supplied about 1.90 lakh parents and about 6.0 lakh commercial chicks to the State Govt. farms as well as rural farmers in the country respectively. Similarly, the Agricultural Universities like UAS, Bangalore; Agricultural University, Jabalpur; CARI, Izatnagar and Project Directorate on Poultry (ICAR), Hyderabad had also supplied considerable number of commercial chicks in the respective regions. Among private sector hatcheries, Kegg Farms Pvt. Ltd., Gurgaon was supplying about 15 million chicks per annum in Uttar Pradesh, West Bengal,

Technical Digest Issue - 6 parts of Orissa, Bihar, Jharkhand, Chattisgarh, Karnataka, Andhra Pradesh and Kerala. 5.0 Concept of Rural Poultry Units and Backward & Forward Linkages M/s.Kegg Farms had developed a new bird named as Kuroiler to address food security and poverty alleviation at the rural household level. The bird which was developed is a multicolour dual purpose bird capable of producing more number of eggs and good quality of meat. The birds could survive and thrive well on village/household waste. Since day old chicks were vulnerable to predators in free range conditions, Kegg Farms encouraged mother units or brooding centres run by rural entrepreneurs for brooding of day old chicks under reasonably controlled conditions for 3 to 4 weeks by which time these birds were capable of thriving in open range conditions. The concept of rural poultry farming adopted for implementation by M/s.Kegg Farms Pvt. Ltd. in various states is as under. Breeding Farm / Hatchery Based on the field observations and interaction with the entrepreneurs as well as the officials of Kegg Farms, the investment cost and economics of mother unit of the size of 2000 chicks per batch was worked out (Table 1) for both thatched and asbestos roof of sheds. The unit cost of a mother unit of thatched and asbestos roof sheds were Rs.72600 and Rs.1,02,600 respectively. This unit leaves a gross surplus of about Rs.5000 per month after repaying the bank loan. 5.2 Cycle Vendors (Perriwalas)

Chicks
Dealers

Feed, Chicks & Medicines

Mother (Brooding) units

Cycle vendors buy the grower birds on credit from mother units/ dealers and repay the same from the sale proceeds after 2-3 days of business. One mother unit of 2000 chicks would support three vendors with an average profit of Rs. 35 per grower sold by the vendor. This Perriwalah activity may not require large sums but loan may be considered for purchase of cycle, basket/cage, feeder and waterer which may be around Rs.1700-1800 per vendor. The investment cost and economics of a cycle vendor is given in Table 2. 5.3 Rural Poultry Units

3-4 weeks old growers

Periwalas (Cycle vendors)

3 - 4 week old growers

Rural Farmers in interior areas Kegg Farms with their network of poultry breeding farms and hatcheries located in various places were producing commercial day old Kuroilers for supplying to the mother units owned by the individual entrepreneurs through their dealers. The services provided by Kegg farms include farmers training, technical assistance, organizing seminars and workshops, circulating the literature on management practices in local languages etc. 5.1 Mother Units

The Mother units located in different villages maintained the day old chicks up to 3 to 4 weeks (depending upon the practice being followed in a particular area) and sold the grower birds to cycle vendors (perriwalas). These units procure chicks, feed and medicines from the dealers on credit or cash payment. Normally a farmer rear nine batches of brids from second year onwards.

In villages, the households prefer coloured birds which produce more eggs and meat under scavenging conditions with minimum mortality. There are variations in husbandry and management practices of poultry in the selected states. Generally, males are sold for meat purpose and hens are retained for egg production. It was observed in the field that village households purchase the 3 / 4 week grower birds from the perriwalas @ Rs. 22-25 per bird and grown in the house itself. A night shelter was provided with small built up nest costing around Rs. 100 for 8-10 birds. Birds scavenge in the natural habitat and little expenditure is incurred on feed, medicine, etc. Birds attained a weight of 1.0 kg in about 4550 days and around 1.5 kg in 90 days of scavenging and sold for meat purpose @ Rs. 60 per Rural Poultry Units bird of 1 kg

Technical Digest Issue - 6 body weight. Economics of Rural Poultry Units with batch size of 20 birds is presented in Table 3. A unit of 20 birds will provide an average in come of around Rs.250 per month. 6.0 Limitations of Study

The team could not study the Rural Poultry units with colored birds supplied by public sector organizations as well as other private organizations as their supply was very limited and not well organized. 7.0 Recommendations

1. Encourage rural households to adopt low input technology coloured birds for supplementing the income as well as to improve the nutrition standards. 2. The existing facilities of State Govt. poultry farms should be made use of for production and supply of commercial coloured birds to the households in rural areas. 3. The poultry breeding farms/ Regional Directorates of GOI should provide training and also technical services especially to the Mother Units. 4. Encourage NGOs, poultry associations, private organisations/bodies etc. through incentives to set up rural poultry units. 5. GoI may encourage low cost poultry production by way of granting financial assistance to the entrepreneurs taking up the activity in rural and semiurban areas. 6. Assistance may be extended to mother units and vendors (perriwallas) by way of bank finance and incentives to establish and carry out the operations in rural areas. 7. GOI may arrange to conduct survey through some agencies in potential states like Chattisgarh, Jharkhand, Bihar, MP, West Bengal, Orissa and N.E. States for wider coverage of rural poultry units. Table 1 : Economics of Mother Units (2000 DOCs) I. Investment Cost (Amt. in Rs.) Items of Investment A. Fixed Costs (a) Shed - 1000 sft. (b) Equipment Cost Feeders-40 @ Rs.80 Waterers-20 @ Rs.40 (c) Misc. equipment Sub Total 4000 1000 40000 4000 1000 70000 @ 35/s.ft. 35000 @65/sft. 65000 Thatched roof Asbestos roof

B. Recurring Cost (For one batch of 2000 birds) (a) Cost of DOCs 2000 @ Rs.8.5 / chick 17000 17000 (b) Feed upto 30 days @ 700 gm / bird @ Rs.9 / kg. 12600 12600 (c) Medicine, vaccine @ Re. 1 / bird 2000 2000 (d) Misc. expenditure litter, electricity, kerosene etc. 1000 1000 @ Rs. 0.50 / bird Sub Total 32600 32600 C. Total Cost (A+B) 72600 102600 D. Margin Money 10% 7260 10260 E. BANK LOAN 90% 65340 92340 say 65300 92300 II Techno-economic Parameters 1 2 3 No. of batches reared - first year - second year onwards Mortality rate (%) Maintenance Cost of Sheds (Rs./annum) Asbestos Thatched (second year onwards) Sale price of growers (Rs./bird) Sale of manure (Rs./bird) Depreciation (%) Sheds Thatched Asbestos Equipment Rate of Interest (%) Repayment period (years) 7 9 4 NIL 1000 20 0.50 10 5 10 12 4

4 5 6

7 8 Sr. No.

III Economics Particulars Years

I II III IV A. Income i) Sale of growers 1920/batch 268800 345600 345600 345600 ii) Sale of Manure Re.0.50 / bird 7000 9000 9000 9000 Total 275800 354600 354600 354600 B. Expenditure i) Purchase of DOC 2000/batch 102000* 153000 153000 153000 ii) Feed Cost - 700 gm/ bird @Rs.9.00 / kg. 75600* 113400 113400 113400 iii) Medicines & Vaccine Cost @Rs.1/bird 12000* 18000 18000 18000 iv) Misc items-litter, kerosene, elect. etc. @ Re.0.50 / bird 6000* 9000 9000 9000 v) Repairs & Maintenance of shed Thatched 1000 1000 1000 Asbestos Total -Thatched Shed 195600 294400 294400 294400 Asbestos Shed 195600 293400 293400 293400

Technical Digest Issue - 6 C. Gross Surplus Thatched shed Asbestos shed D. Repayment of loan Thatched Asbestos E. Net Surplus Thatched Asbestos Table 3 Economics of Rural Poultry Unit - for meat (20 birds under scavenging condition) I ) Investment cost Particulars Amount ( Rs.) A) Fixed Costs i) Cost of small nest for night shelter 200 ii) Cost of feeders and waterers 100 Sub Total 300 B) Recurring Cost i) Cost of 4 weeks old growers 20 Nos.@Rs.24/bird 480 ii) Cost of feed - 1 kg/bird upto 45-50 days 120 @ Rs.6/kg for 20 birds Sub Total 600 C) Total Cost 900 D) Margin money (10%) 90 E) Bank loan (90%) 810 II. Techno-economic Parameters 1. 2. 3. 4. 5. 6. 7. 8. No. of growers purchased at 4 weeks old Mortality up to rearing period of 45-50 days (%) No. of growers sold per batch after 45-50 days No. of batches reared per annum Live weight of grower at the age of 45-50 days (kg) Sale price of grower (Rs./bird) Repayment period (years) Rate of Interest (%) 20 5 19 6 1 60 3 12

80200 80200 21483 30367 58717 49833

60200 61200 21483 30367 38717 30833

60200 61200 21483 30367 38717 30833

60200 61200 21483 30367 38717 30833

* Other than capitalized cost Table 2 Economics of cycle vendors (Perriwala) I 1 2 3 4 Investment Cost Particulars Amount ( Rs.) Cost of cycle 1600 Cost of Basket / Cage 200 Cost of feeder / waterer 50 Cost of feed (3kg / @ Rs.9/ kg.) 27 Total Cost 1877 Margin Money 10% 177 Bank Loan 1700 Number of days of work available/month Number of birds sold / month Expected life of cycle (years) Rate of Interest (%) Repayment period ( years ) 20 500 3 12 3

II Techno-economic parameters 1 2 3 4 5

III. Economics S. No. A) Particulars Income Sale of birds 6 batches @ 19 birds /batch @ Rs.60/bird Expenditure i) Cost of 6 batches of growers @ Rs.24 per bird ii) Cost of feed @ 1 kg/bird for 6 batches @ Rs.6.00/kg Total Gross Surplus Repayment schedule Payment of Principal Payment of interest Net surplus Amount ( Rs.) Year I II III

III Economics S. Particulars No. A. Income : Sale of birds - 6000 birds @ Rs.24 / bird 144000 144000 144000 B. Expenditure : i. Cost of purchase of birds 6000 @ Rs.20/ bird 120000 120000 120000 ii. Maintenance cost of cycle @ 60 / month 720 720 720 iii. Feed for birds @ 50 gm/bird 2700 2700 2700 iv. Wages @ Rs.50 / day for 240 days 12000 12000 12000 v. Expenditure on Food @Rs.20/day for 240 days 4800 4800 4800 Total 140220 140220 140220 C D Gross surplus Repayment of loan Principal Interest Net Surplus 3780 3780 3780 ( Amount in Rs. ) Years I II III

6840

6840

6840

B)

2880 720 3600 3240 270 97 2873

2880 720 3600 3240 270 65 2905

2880 720 3600 3240 270 32 2938

C) D)

E)

600 204 2976

600 132 3048

500 60 3220

The authors are thankful to Dr. Iqbaluddin, Jt. Commissioner (Poultry), Govt. of India, Dept. of AH and Dairying, Ministry of Agriculture and Kegg Farms for giving an opportunity to study the Rural Poultry Units in selected states, based on which the present paper is developed.

Technical Digest Issue - 6

Articles

THE DISCOVERY OF A DINOSAUR TREE

Dr.M.S.Haque Imagine a new Gymnospermous tree discovered as recently as in late 1994 and which was thought to be long extinct and that has existed since Dinosaurs roamed the earth. The discovery was not only interesting but also unimaginable and aroused considerable interest in the world scientific media. The New Scientist wrote Pine dinosaur lurks in gorge; The Houston chronicle reported A Botanical discovery for the ages; Nature and Resources published The Wollemi Pine: discovering a living fossil. These are only a few of the publications that had given extraordinary importance to the discovery. Again the tree is a living fossil, since it was known previously only from fossil pollens. As far as our knowledge on Gymnospermous living fossil trees are concerned, only two trees have around such interest in the past. The earliest one was Ginkgo biloba the maidenhair tree, when it was discovered by Kaemfer in China in 1690, otherwise known only from fossil records. The other tree was Metasequoia glyptostroboides the dawn redwood also discovered in China in the late 1940s, previously known only in fossil state. The Wollemi pine was discovered by the officers of the National Park and Wildlife Service of Australia, growing in Wollemi National Park, just 150 km of Sydney. Wollemi is derived from an aboriginal word meaning watch out or look around you. The pine has been named Wollemia nobilis, commemorating the Wollemi National Park in which it occurs, as well as both David Noble, the officer who discovered it and the stature of the trees. Morphological features The Wollemi pine is a large tree growing upto 40m tall. It has a unique pattern of branching resulting in a double

crown effect. Successive whorls of primary branches arise from the vertical leading shoot. Older trees can be clearly seen to have a branched crown. Male and female cones resemble to that of Araucaria and it is on these cone features that the Wollemi pine has been placed in the family Araucariaceae, most closely related to Agathis , although more resembling Araucaria superficially. There is some sort of dimorphism in leaf characters i.e. juvenile leaves are soft in texture and dark green above while the adult leaves are stiff and yellowish-green on both the surfaces. Bark of the tree has been linked to bubbling chocolate, chocolate crackles or coco pops. It is another unique feature of this unique tree and quite different from the bark of related species in the family Araucariaceae. How was it discovered ? The Wollemi National Park occupies on area of 496,000 ha. m o s t l y comprising highly d i s s e c t e d outcrops of T r i a s s i c sandstones that were deposited 200 million years ago. It is an almost entirely unspoiled area of scenic grandeur. The extremely rugged nature of

Technical Digest Issue - 6 the terrain coupled with low fertility of the soils has discouraged exploitation and thus remained undisturbed. Access to many parts is so difficult that a large tree such as the Wollemi pine remained undiscovered until now, despite the proximity of a major city and a country with a well developed scientific and technical infrastructure. The Wollemi pine resembles Araucaria in an unusual feature that it cannot shed leaves, rather shed the entire branch. This gives the litter on the forest floor a very distinctive feature. It was this litter in the stream that first alerted David Noble to the presence of the trees. How could it manage to survive? The trees produce epicormic shoots which are adaptive features that increase the trees chance of survival in case of environmental disturbances, such as storms, drought, fire or even rockfall. It has also capacity to develop new shoots and eventually new trees from mature trees at or below the soil land. This capacity is known as coppicing and eventually leads to large old plants with multiple trunk of different ages, some old trees have as many as 60 separate stems developed through coppicing and in many cases the original trunk is long gone. Such trees are potentially of great age, conceivably pre-dating the Roman empire. Hence it is thought that coppicing with epicormic shoot production coupled with in accessability has ensured the survival of this unique tree for such a long time. Geological history The Wollemi pine belongs to an ancient group of seed bearing plants dating back to 300 million years ago in Carboniferous period. The family Araucariaceae, where it is placed now along with two other living genera, Araucaria and Agathis, is also an ancient group with fossil representation as old as the Triassic (over 200 million years ago). The outer skin or cuticle of plant, leave and pollens are extraordinarily durable and are frequently pressured as fossils when all are lost. The cuticle of Wollemi pine shows some characters of Agathis and Araucaria, but exactly matches neither. Adult and juvenile foliage also displays different characteristics. The Wollemi pine has now been matched with fossil pollen that was previously somewhat of a mystery. The pollen known as Dilwynites was abundant in the Australian record from mid Cretaceous to mid Teritiary (94-30 million years ago). Several forms of Dilwynites pollen are known, corresponding most probably to different taxi, some of these match Wollemi pine extremely well. The genus Wollemia was evidently once widespread and abundant in Australia, although now restricted to a single occurrence in the Wollemi National Park. Research and Development As a rare and endangered species, the Wollemi pine has become a focus for research in several fields. It has been observed that the tree can coppice easily. It can be propagated by cutting and rooting of shoots. Viable seeds are easily identified and germination has proved successful. As regards the prospects of tissue culture, simple cloning of the Wollemi pine has been achieved using shoot explants placed on a nutrient medium, with dormant buds growing out to form new shoots. At the Royal Botanic Gardens, Sydney, DNA sequences are being studied and compared with related groups. Ecological studies are being conducted by the National Parks and Wild Life service. As part of a species recovery plan, the Mount Annan Botanic Garden is establishing an ex situ collection to complement in situ conservation measures. A representative collection of individual trees are being kept at Royal Botanic Garden and plants are being distributed to other Botanic gardens worldwide. The second strategy involves the development of a rapid propagation system to release plants to Horticulture industry. Only time will tell whether the Wollemi pine can be adopted as a Horticulture/ Forestry species, but efforts are being made in this direction. Significance of the discovery Every year around 13000 to 15000 new species of plants and animals are added to 1.75 million species that have been so far described and named by Science. But most of the new species belong to lower forms of life, mainly microbes and insects, hardly there is any scope to discover a tree species and that too a Gymnosperm which is a living fossil. Wollemia is one of the Worlds rarest trees, with less than forty adult plants known to exist in two small stands. One reason suggested for the extreme rarity of the tree is depression of fertility, due to inbreeding within the small population and consequent accumulation of harmful recessive genes. However, there are numerous seedlings and some saplings of varying ages present at both the sites. Thus, fertility may not be the only reason. Obviously, more studies are necessary on these aspects to know the truth. The discovery of Wollemi pine has however set an example of what each of us can discover if we open our eyes to the world around us truly an appropriate name assigned to Wollemia nobilis.

Technical Digest Issue - 6

Article

IRRIGATION DEVELOPMENT - PROBLEMS AND STRATEGIES

S. M. Mendhekar and M. L. Chalakh 1.0. Introduction 1.1. India is one of the few countries in the world endowed with abundant land and water resources. The average rainfall in the country is estimated to be over 4000 cubic km spread over the geographical area of 328 m ha of which 185 m ha is culturable. Due to tropical climate conditions, India experiences vast spatial and temporary variation in the rainfall. About one third of the countrys area is drought prone. The Southern and Western parts of the country comprising States of Rajasthan, Gujarat, Andhra Pradesh, Madhya Pradesh, Maharashtra, Tamil Nadu and Karnataka are drought prone. On the other hand, the areas subjected to periodic floods are mainly in the Northern and North Eastern parts of the country comprising States of Uttar Pradesh, Bihar, West Bengal, Assam and the seven North Eastern States. 1.2. There is wide variation in the average per capita availability of water in the various river basins. It is as

high as 14000 cubic metre in Brahmaputra / Barak valley to as low as 300 cubic metre in Sabarmati, whereas some of the river basins like Mahi, Tapi and Pennar are already water stressed. The availability of less than 1000 cubic metre per capita is considered as scarcity as per International Standards and remedial measures, as possible, need to be planned. Thus, scarcity conditions already exists in some parts of the country which needs to be mitigated. Table : Water Resources of India Geographical Area 328 m ha Culturable Area 185 m ha Rainfall 4000 cubic km Utilisable Water 1122 cubic km (including Resources 432 cubic km from Groundwater) Ultimate irrigation 139.9 m ha potential

1.3. Out of the ultimate irrigation potential of 139.9 m ha, by 1996-97, 90.81 m ha is already created including 44.93 m ha from surface water and 45.88 m ha from groundwater. 2.0. Future Demands 2.1. Drinking Water United Nations has projected that by the year 2025 A D, the population in India would be around 1394 million adopting medium projections. As per National Water Policy highest priority is accorded to drinking water supply. Therefore, the likely need of the increased population would have to be met in the long term planning to ensure drinking water supply. 2.2. Irrigation It is estimated that by the year 2025 A D, the utilization of the resources are likely to go up to 1050 cubic km consisting of 700 cubic km from surface and 360 cubic km from groundwater. Thus, almost the entire utilization of water resources of the country would be required to put to use by the year 2025 A D. However, even before this there would be many regions which would be facing serious shortage of water, especially Western Rajasthan, Maharashtra, Rayalseema in Andhra Pradesh, and most

Technical Digest Issue - 6 parts of Tamil Nadu and Gujarat States. At the same time, there would be regions which would continue to remain surplus due to availability of large water resources potentials but inadequate culturable lands. 2.3. Demand for Food Grains At present, the average annual food grains production during the last three years in the country is around 200 million tonnes, besides, sugar and edible oils etc. The futuristic demand for food grains upto 2025 A D would depend on population, per capita requirement and need for exports. The food requirements by then would go upto 400 million tonnes per year. Therefore, concerted efforts would have to be made to step up the present production through efficient management of both land and water resources. However, the most crucial yet determining factor would remain to be the availability of dependable irrigation water. 3.0. Irrigation Potential 3.1. The assessment of ultimate irrigation potential of the country made in 1972 has been revised, mainly on account of reassessment of groundwater potential by the Central Ground Water Board (CGWB) from 40 m ha to 64.05 m ha. The ultimate irrigation potential for minor surface water schemes was also revised from 15 m ha to 17.38 m ha. Consequently, the ultimate irrigation potential stands revised from 113.5 m ha to 139.9 m ha as per the details furnished in table below: Table : Irrigation Potential (million hectare) Ultimate Irrigation Potential (m ha) Sector Existing Revised i) Major & Medium Irrigation 58.46 58.46 ii) Minor Irrigation a) Surface water 15.00 17.38 40.00 64.05 b) Grounded water 55.00 81.43 Total (i + ii) 113.46 139.89 3.2. If, one assumes a moderate growth in demand coupled with the efficient irrigation practices leading to higher per ha crop yield from existing 2.5 tonne to achievable 3.5 tonne, the present irrigated potential would be sufficient to meet the projected food requirements. Shortages and large scale import of food grains is likely to be socially unacceptable even in globalized economy. This makes imperative to adopt other non conventional methods of increasing irrigation potentials. The non conventional methods thought of, at present, are: (1) Conservation of water use and optimization of water use efficiency; (2) Artificial groundwater recharge to further increase groundwater potential; (3) Conjunctive use of surface and groundwater; and (4) Inter basin water transfer. 4.0. National Water Policy 4.1. The National Water Policy as adopted by National Water Resources Council in its Fifth meeting on 1 April 2002 describes: Water is a prime natural resource, a basic human need and a precious national asset - hence planning, development and management of water resources need to be governed by national perspective. It emphasizes the need of well-developed information system for water related data at national and state level for resource planning through which water resource available to the country should be brought within the category of utilizable resources to the maximum possible extent. It recommends, economic developments and activities including agriculture, industrial and urban development should be planned with due regards to the constraint imposed by the configuration of water availability. There should be water zoning of the country and the economic activities should be guided and regulated in accordance with such zoning. To implement this broad principle, it is necessary to create awareness about water as a scarce resource commodity and create conservation consciousness amongst people through regulations, incentives and dis-incentives. 4.2. Agriculture Sector, being the biggest consumer of water, has to be sensitized to the need of respecting water as a scarce resource, even where it is plenty, at present. Efficient water use in crop production is indeed an inter-disciplinary subject and requires inputs from engineers, agriculture scientists, social scientists and farmers. 5.0. Employment and Income Impact Irrigation is playing an important role in generating employment in rural areas. Since, employment and income dynamics of irrigation extend far beyond farm sector, irrigation expansion plays a vital role in regional development. The additional employment generated due to irrigation is estimated at 8.7 million person-years (MPYs) including 2.6 MPYs in works and 6.1 MPYs in farm and non-farm activities. It is also estimated that irrigation helps to induce 5 per cent increase in additional output in manufacturing and 14 per cent in the tertiary service sector. 6.0. Problems of Irrigation Sector Despite its remarkable agricultural and micro economic contributions, the irrigation sector faces many problems both from within and outside the sector. Problems now faced are not only sectoral issues but economic within their ramifications, as well. Solution to the irrigation sector problems will have a strong bearing on agricultural sustainability and economic stability. 6.1. Problems in Surface Irrigation The surface irrigation projects would continue to play a stronger role. The weak physical, financial and institutional foundation on which the irrigation sector is operating makes it doubtful whether the sector can continue to deliver production, income, employment benefits at the present level. Although, surface irrigation projects have brought prosperity, the projects themselves have tended to remain unviable with the water rates covering less than 5 per cent of Operation

Technical Digest Issue - 6 and Maintenance (O&M) costs. Water logging, salinity and alkalinity is one fall out of poor management of the system and the others being distressed tail ender farmers. It is expected that the present surface irrigation systems are woefully inefficient causing many environmental and ecological problems. Nevertheless, if these resources are well-managed, better-planned and optimally- and efficiently-utilized, the potential presently created would be adequate to meet the future demand of irrigated agriculture without investing in new projects. 6.2. Problems in Groundwater 6.2.1 Although, the groundwater works, which are individually owned, have better efficiency and productivity, the main problem is of developing an adequate and potent kit of policy instrument that can enable policy makers to bring a modicum of order in its present chaotic development under private initiatives. 6.2.2 Free or highly subsidized availability of power has caused more damage to groundwater. The urgent need, therefore, is to check pumping an overdraft of groundwater keeping in view the groundwater dependent agricultural economy. Besides, declining water levels, groundwater is also confronted with the problem of chemical quality. Capital intensive technology available to elite and influential farmers has created iniquitous development and emergence of informal water markets, thus treating water as a tradable commodity in absence of effective legislation. 7.0. Challenges 7.1. The new economic policy which underlines financial disciplines and market based approaches to economic management and acceptance of WTO, which has initiated global agricultural trade liberalization, has placed Indian agriculture amidst a host of challenges and opportunities. This necessitates stipulating a 4.5 per cent growth rate against all time 3 per cent. This is possible, if there is a higher productivity and diversification to high value farm production, which can happen only through irrigation. The sector is posed with two main formidable challenges, one, the green revolution which having shown high agricultural growth is now showing signs of lethargy due to progressive exhaustion of technological potential and deterioration in natural resources, and two, the land resource based agriculture is gradually declining due to land degradation. 7.2. Besides this, the other challenges are: (1) Limitations on physical expansion of irrigation particularly in major river basins which is fast approaching its ultimate potential; (2) Competitive use of water from other sectors. The share of irrigation in the total water use is expected to decline from 83 per cent to 73 per cent during next decade as a result of four fold growth in non irrigational sectors; (3) Fiscal constraint to expansion is also becoming increasingly binding. For instance, the share of irrigation in the total Plan expenditure has come down from 22 per cent from the First Plan (19511956) to 6.5 per cent in the Ninth Plan (1997-2002). Irrigation contributes significantly to the revenue deficits of the States. 8.0. Performance Improvements In the context of present situation, it is not only imperative but compulsive to improve the performance of the irrigation sector. Unlike the expansion strategy which faces formidable exogenous constraints, the major problems for the performance improvement strategy have to be manageable and largely endogenous to the irrigation sector. The issues confronting the performance improvement are many, varied and inter linked. These could be classified as physical issues, economic & financial issues and institutional issues described hereunder: 8.1. Physical Issues The physical conditions of irrigation system is in bad shape limiting its capability and realibility. Inefficiency pervades from catchment to the drainage network leading to under utilization of the highly costly resources. Physical deterioration leads to considerable water waste due to which it is impossible to deliver water in the right amount at right time and the ultimate result is reduction in irrigated areas; and the ultimate toll is economic performance. 8.2. Economic Issues The economic and financial issues are intertwined and have their origin in current related policies like water pricing, cost recovery and expenditure prioritization. Despite Government agreeing to revise water rates, the uneconomic old water rates continue even at present. As serious as the financial manifestations of current investment and water pricing policies are their deleterious economic consequences on the production front. Subsidized water rates disenthuse farmers to opt for the tenets of water use efficiency and conservation. 8.3. Institutional Issues The fundamental cause of all critical issues is the weak institutional foundation. The institutional issues include; (1) Gaps and weaknesses in the organization base of water distribution and management; (2) The problems and limitations of existing plan and administration; and (3) Lack of organic linkages between water delivery mechanism and agricultural inputs, credit and extension services. 9.0. Strategies and Perspectives 9.1. There is urgent need to reform the current irrigation policy and strategy to further its contribution to agriculture, generate employment, income and economic growth. Such reforms shall gear up the irrigation sector to effective distribution for production optimization, accept challenges induced by economic liberalization, grass root level demand for decentralized policy and making management accountable. The performance improvement strategy would provide an opportunity for redressing the irrigation sector and thus making it more responsive to current as well as future

Technical Digest Issue - 6 needs. The proposed strategy therefore involve a shift: a) From the current emphasis on physical expansion to performance improvement; b) From the current focus on water supply with limited goal of agricultural production to focus irrigation as a critical tool for augmenting production and bring efficiency in its use; c) From Government control to client oriented focus; d) From dependency on Government budget to collection of commercial water charges; e) From Government controlled institutions to commercially oriented, effective and efficient autonomous service institutions with minimum overall costs; and f) From Government ownership to privatization and participatory management. 9.2. The above strategy calls for simultaneous intervention in the institutional, financial, technological and social areas. Irrigation agencies need to be restructured, water users association (WUA) fostered for operation and maintenance of irrigation works, expenditure reprioritized and water rights introduced. The action plan to effect these changes is suggested below: 9.3. Restructuring of Irrigation Departments 9.3.1. The Irrigation Departments are required to be reformed and restructured to accept new challenges for: (1) Making them more autonomous, less construction oriented and more client focussed; (2) Improving their internal structure and making them more decentralized; (3) Enhancing their internal and external communications and linkages; and (4) Enhancing their skill and performance. 9.3.2. The specific modalities of restructuring would differ from state to state and might be situation specific. To make the Irrigation Departments more client focussed, it is necessary to develop political and administrative will, staff incentives and rewards systems, internal communications and feedback mechanisms as also skill updating. The financial self sufficiency by the new institutions (e.g., WUAs, NGOs, Private Sector Firms, Autonomous Service Institutions) could be achieved through recovery of the recurrent cost by revising the water rates, cutting down administrative cost without compromising on quality and efficiency and promoting irrigation management transfer. 9.4. Irrigation Management Transfer 9.4.1. The past two decades emphasized on addressing the management dimensions of irrigation but this management focus sought ways to improve the performance of irrigation, managers did not address the more fundamental issue of who those managers should be. It was assumed that the management would continue to be with the Government and that the role of farmers would be only as a tertiary willing participants. However, recently there has been an active thinking and action on transfer of irrigation works to farmers or NGOs. Recognizing the fact that irrigation management transfer is an evolutionary process, Water Users Association will have to be created in a phased manner. The Bharat Chamber of Commerce and the participatory management of the tubewell by the Panchayats in West Bengal have proved successful. Promoting irrigation management transfer involves legal, financial, social changes. The State Government may have to play a greater and intense role for such a transfer and NGOs can play a catalyst role in organizing farmers to develop and manage their water resources. The financial institutions may have to provide funds to the WUAs for their success. 9.4.2. Many of the tasks currently carried out by the national and state governments can be performed by the private sector firms who are becoming more and more sophisticated and can provide a more focussed approach for creation and effective management of the resources. 10.0. Points Need Attention 10.1. The design and performance of public irrigation system still follow some principles, which are not any more in tune with the current and future needs of the farmers and the country. Most schemes do not operate as planned. It would be a mistake to rehabilitate existing schemes or design new ones without using more advanced design principles and co-managing these with the private institutions and farmers. Many changes in the present concepts of water supplies are overdue particularly in regard to: (a) Increasing irrigation intensity; (b) Recycling surface irrigation water; (c) Developing conjunctive use; (d) Improving canal efficiency; (e) Introducing dynamic regulations; (f) Transfering completed works to farmers; and (g) Improving water management at chak level and ensuring simultaneous completion of on farm development works. 10.2. To sum up, to fulfill the tasks ahead, would entail: a) Reforming the State Irrigation Department by putting them on a sound financial basis and improving their linkages with the agricultural institutions; b) Fastening the creation of Water Users Association (WUA) and turn over of irrigation projects for effective management, O & M care of the minor and distribution canals; c) Establishing the water rights; and d) Rehabilitating and modernizing the irrigation systems. 10.3. Improving irrigation-financing would entail upon making the Irrigation Departments autonomous and selffinancing through increased water charges, improving collection rates and developing instruments to capture private sector investments in development and management. The thrust of the new strategy would be on integrated approach to irrigation performance and agricultural growth, where reforming both the irrigation system and the irrigated agriculture interface would be the primary vehicle for sustainable agricultural growth.

Technical Digest Issue - 6

News Briefs

NEWS BRIEFS

OXFAM SAYS EU DAIRY POLICY DESTROYS THIRD WORLD LIVES The EUs milk and dairy subsidies destroy the livelihoods of some worlds poorest farmers, who are undermined by the blocs large-scale dumping of surplus produce, British-based aid agency Oxfam said today. European taxpayers financed their dairy industry to the tune of 16 billion euros each year-the equivalent of about 40 per cent of output by what was the most important agricultural sector in most EU member, Oxfam said in report. This is equivalent to more than $2 per cow per day-half the worlds people live on less than this amount, the report said, adding that export subsidies accounted for about half of total EU expenditure on diary in recent years. But EU exports come at high price for poor producers in developing and transition countries, many of whom live in acute poverty, and face unfair competition from cheap subsidies EU produce in their local markets and in export markets, it said. These exports did not benefit European farmers but dairy processing and trading companies, which received more than one billion euros in export subsidies each year to bridge the gap between high internal EU prices and lower world prices, it said. Despite a complex system of member state production quotas to keep supply roughly balanced with demand, the EU still turned out more milk and milk products such as butter and milk powder than it needed to satisfy domestic consumption, Oxfam said. That resulted in a structural surplus of dairy produce, absorbed internally or dumped externally using subsidies,which EU surpluses of milk and milk products are dumped on world markets using costly export subsidies, which destroy peoples livelihoods in some of the worlds poorest countries,it said. The EU introduced quotas in 1984 within its Common Agricultural Policy (CAP) to try to stop over-production of milk in Europe. Alongwith the quotas and export subsidies, the EU also applied a labyrinthine system of price support and import curbs to protect its internal market for competition, Oxfam said. Import restrictions are the flipside of the export subsidy system, the report said. Without tariffs, the high internal EU prices for dairy products would attract large volumes of imports. Therefore, the EU maintains high tariffs against imports of dairy produce in order to protect domestic producers from competition. Current policy on quotas has been effectively frozen as the dairy sector only comes up for reform in 2008. In the meantime, the executive Commission has been studying various proposals and the quota system looks

set to survive in some kind of shape. The two main options under discussion are to keep the status quo or to build on the reforms already agreed-meaning reduced support prices for butter and skimmed milk powder, offset by direct payments to farmers and raised production quotas. The other alternative are to abolish quotas, a move that the Commission says would trigger a 25 percent fall in prices, or to introduce separate quotas for internal consumption and exports. The last option has now been largely discarded. Oxfam said the approach to reform favoured by European Commission and most member states was based on an obsession with defending Export market shares, regardless of cost. What was really needed, it said , was a sharp cut in production quotas to end dumping, alongwith measures to redistribute agricultural support to small-scale farmers. GLOBAL AGRICULTURAL SUBSIDIES REACH UNSUSTAINABLE PROPORTIONS: WTO Though the WTO has been advocating for reducing farm subsidies, it has been facing resistance from the USA and EU countries who consider that the reduction of farm subsidy would be harmful to their economy. But WTO states including the third world countries committed themselves to make efforts to free in farm products, cut subsidies and provide greater access to each others markets at the Doha talks. Other trade areas like services and industrial goods are also to be liberalized, according to a report received here. A top WTO officials pleaded for progress in efforts to free up the politically-sensitive area of farm trade yesterday, saying failure could jeopardize a new global round of commerce talks, the report said. He said the European Union in particular needed to reform its controversial, subsidy-heavy farm policy and that the EU and the United States needed to patch up recent trade disputes. Agriculture is one element of trade which has been crying out for basic reform for so long, Sergio Marchi, Canadian WTO ambassador and head of the General Council of the World Trade Organisation (WTO), told a conference. He cited figures which showed rich states spend $1.0 billion a day supporting agriculture and British aid group which has said $2.20 a day are spent on each cow in Europe while three billion people in poor nations survive on less than that. However we measure the numbers, global agricultural susbsidies have reached absurd and unsustainable proportions he told the conference, organised by Brussels-based think tank the Centre for European Policy Studies. Marchi, also chairs meetings of the

Technical Digest Issue - 6 General Council, the second highest decision-making body in the group, and oversees the negotiations which began last year in Doha to further liberalise world trade. Canada is one of the worlds top agricultural exporters and has long campaigned against EU and U.S.farm export subsidies. Equally the European Community will have to make progress on reform of the Common Agricultural Policy (CAP).Without real progress on agriculture, there will be no Doha round, he said On farm talks, the WTO has a March 2003 deadline to decide the framework of how the negotiations will proceed. A senior WTO official is also to produce a progress report on the proposals made so far by Dec.18 this year. Marchi said overall he was confident of a WTO deal by the end of the Doha round, due in 2005 , and hoped EDU would come up with proposals in time for the WTO December progress report. The EU is in talks on reforming the CAP, which swallows 40 billion euros(dollars) almost half the EU budget, a year. The EU Farm Commissioner Franz Fischler, architect of CAP reform with a radical blueprint that would remove many trade-distorting subsidies, said his proposal for decoupling- breaking the link between production and aid- was essential in the WTO talks. As negotiators acting on behalf of the European Union, we need to maximise our negotiating capital. If we can give a bit more, we can get a bit more he told EU farm ministers. Hence our proposals for decoupling could be crucial in getting the best deal for the European model of agriculture. Fischlers bold plans would go some way towards placating critics of EU farm policy but remain deadlocked between ministers, with little chance of headway of some months. MORE CROP PER DROP The role of agriculture is essential in resolving the worlds water problems. 12 March 2002 As the International Year of Freshwater, 2003 is an opportunity to focus on the role of water as a precious and finite resource that we must use carefully. To feed an additional 2 billion people by 2030, water needs to be used more efficiently. Agriculture is the biggest water consumer. It uses around 70 percent of all freshwater withdrawals worldwide. With a growing world population, agriculture will face more competition from industrial and domestic water users. This is why agriculture will have to use water more efficiently. Rainfed agriculture accounts for 60 percent of food production in developing countries on 80 percent of arable land. Only 20 percent of the arable land in developing countries is irrigated, but it produces around 40 percent of all crops and close to 60 percent of cereal production. The contribution of irrigation to world crop production is expected to increase in coming decades: the irrigated area in developing countries is expected to increase by 40 million hectares (20 percent) by 2030. This is less than half of the increase over the last 35 years (99 million hectares). The reasons for this slowdown are: The growth rate of food demand will decrease. Suitable areas for irrigation will be increasingly scarce in some countries. The cost of irrigation investment will rise. Irrigation expansion will be strongest in land-scarce areas where irrigation is already very important: mainly in South and East Asia, and in the Near East and North Africa. There will be no overall shortage of land or water for irrigation, but serious problems will persist in some developing countries and regions. One in five developing countries will face water shortages by 2030. Agriculture will have to improve the performance of both irrigated and rainfed production. Investments for smarter water-saving agricultural practices and better water management are urgently needed. Agricultures potential needs to be unlocked to resolve the worlds water problems and to use scarce water resources much more productively. The technical solutions to produce more crop per drop exist. But investments and political will are often lacking to improve rainfed production and modernize irrigation systems and to respond to the needs of people in rural areas. Unless national governments and funding agencies make strategic choices in favour of agricultural water management, agriculture will not be in a position to maintain necessary water allocations for food produced by irrigation. It is therefore essential: to recognize that agriculture is the sector where the potential for water productivity gains is highest, to accept that all sources of water (rain, surface water, groundwater and wastewater) are important to achieve food security where water is scarce, to create the right policy, institutions and market incentives to increase water-use productivity in agriculture, to move from supply-to demand-driven and serviceoriented water management, to realize that rural development may be better served by investments in sectors other than irrigation. The best option depends on the circumstances in each country. The International Year of Freshwater will be a great step forward if the International community focuses more attention on the Importance of water management in rural areas.

Technical Digest Issue - 6

Research Communications

IV WORLD NEEM CONFERENCE - NEEM 2002

The IV World Neem Conference was organised by NEEM Foundation in collaboration with Industries and Research Institutions during 27 to 30 November 2002 in Hotel Taj Lands End, Bandra, Mumbai. The undersigned represented NABARD RO, Pune. The participants included 250 experts, entrepreneurs, researchers from India and 50 from overseas. I. Inaugural Session The inaugural function was chaired by Shri Mohan Dharia, a well known social worker and environmentalist, President Vanarai, Pune. Key note address was delivered by Dr. P.Pushpangadan, Director, National Botanical Research Institute, Lucknow. Dr.N B Godrej, Chairman, Steering Committee of IV World Neem Conference, NEEM 2002 in his welcome speech, described neem tree in poetical language wherein he clearly brought out that China has already plans to grow neem tree on a grand scale. There is, therefore, an urgent need for India to wake up and exploit potential of Neem so as to improve health of living beings, bring prosperity and wealth to the country in particular and human kind at large. He also pleaded for permission to urea coating with neem which would increase the price of urea marginally but improve its efficiency tremendously, especially in countrys vast rice fields. Dr.Pushpangadan, in his key note address, brought out innumerable advantages of neem to the mankind. Archaeological evidences indicate that neem leaves were used for grain preservation even during Indus civilisation. Neem was preferred for preservation of grains and for medicinal value since time immemorial. More than 160 uses of neem have been identified. He also traced the use of neem in Siddha and Ayurveda. Revival of neem patent in favour of India was an Herculean task. Neem Mission, India under the leadership of One Man Army and doyen of neem Shri C M Ketkar of Pune played a pivotal role in this regard. Now, it is therefore necessary that India should provide leadership in neem by enlisting various uses of neem so that the products would be available for use at a reasonable price and also conveniently made available to the other people on globe for their betterment. Further, benefits could be harnessed by Indian institutions as indigenous technology and not forced to purchase from other countries if they are patented. Shri Mohan Dharia, in his presidential address, underlined the importance of greening the earth through watershed development

activities. He described neem as a golden tree of 21st Century, kalpavruksha and miraculous tree of India. He also strongly pleaded for inclusion of 10% of neem plantation in afforestation programme of Social Forestry Department of the country. The Inaugural function came to a close with vote of thanks by Dr.Vyas from Godrej Agrovet. II. Plenary Lectures Dr.Shmutterer delivered his address on Three Decades of Neem Research in Germany. In his address, he brought out Insecticidal properties of neem and its byproducts and their use in integrated pest management. Azadirachtin content of neem have been effective indicator of its efficacy. There were 13 more invited lectures depicting various activities of neem. The important ones included 1. Role of neem products in management of insect pests with neem and global perspective. 2. Utilisation of neem products in enhancement of fertiliser efficiency. 3. Review of indigenous knowledge of neem from 1500 BC to 1900 AD. 4. Neem from disenfranchised tree to an industry crop. 5. Role of neem in animal health. 6. Neem in nematode management. 7. Neem research - Italian experience. 8. Issues relating registration of neem pesticides in different countries. 9. Intellectual property rights and related issues. 10. Constraints relating to development of neem industry and 11. Concept in neem pest contribution and its medicinal properties. Dr. Venugopal systematically reviewed the indigenous

Technical Digest Issue - 6 knowledge of neem and vividly brought out multifarious uses of neem for its medicinal, insecticidal, pesticidal, regulator of nitrification, fertilizer and for several other values. Dr. Vyas elaborated on the utility of neem in enhancement of fertilizer use efficiency. He also quoted extensively from the basic research works of Hulagur and Shinde from India carried out during 1970s and 1980s. III. Technical Sessions There were 16 concurrent technical sessions. The topics included for technical sessions were. Insect control, Environment and socio economic issues, Animal and human health, Chemistry, Nematode control, Fungus control, Process and product development, Genetic improvement and afforestation, Socio-economic issues, Chemistry and fertiliser. Dr. M R Sharma, Principal Technical Adviser, NABARD, HO, Mumbai also presented a paper on credit support from NABARD for development of medicinal plants including neem in India. Shri Suresh Prabhu, M.P. also addressed participants on 28 November 2002 and drove home the dire need for cataloguing multifarious uses of neem and its byproducts and creation of research data base in their support so that India will have ligitimate claims on those knowledge bases as it formed an integral part of its Indigenous Technology Knowledge (ITK). Dr. B F Hulagur, DGM, NABARD worked as a judge for deciding award of prizes for papers presented in poster session and also was a co-chairman for technical session on Socio Economic Issues. During the deliberations, he informed that the local level institutions like Self Help Groups (SHG), Village Watershed Committees (VWC), Village Development Committees (VDC), Sayunkta Mahila Samithis (SMS) - federation of women SHGs, etc. that were formed and strengthened under Watershed Development Programmes implemented by NABARD with the assistance of Watershed Development Fund (WDF) and other external aided programmes in the country could be used for collection of quality neem seeds. Non-aerable lands of these watersheds are also producing healthy and good quality neem plantations. IV. Valedictory Session Dr. D N Tiwari, Member, Planning Commission was the Chief Guest during valedictory session. In all 141 papers were presented, of which 90 were oral presentations and 51 poster presentations. Also, 14 were invited lectures / plenary lectures on various topics in the field. Based on the discussions during four days, the following recommendations were made : V. Recommendations 1. International technical cell of experts be established to encourage cooperation to provide help and address issues relating to scheduling, registrations, specifications, standardization, etc. 2. In order to focus on the Neem for Sustainable Development, a Neem Technology Mission should be constituted by Government of India. 3. Declare Neem as National Tree of India and urge upon the Ministry of Environment and Forestry as well as Wasteland Development Boards to take up large scale neem plantations programme throughout the country. 4. Since Neem is indigenous to India, there exists a wealth of knowledge about Neem, India should lead the neem movement for the benefit of humanity. 5. Ministry of SSI and Ministry of ARI, through its various agencies should establish Technology Support Centres for Neem in collaboration with State Governments having potential for developing Neem based products industry clusters. 6. Respective departments of Government of India should provide policy and fiscal support for existing and promising Neem Technologies, e.g. excise and sales tax exemption for Neem based plant protection products, clearance for manufacture and sale of neem Coated Urea and so on. 7. States with major population of Neem trees take steps to increase neem seed collection and establish demonstration centres for primary processing of seeds and fruits. 8. Agriculture extension network should be sensitized to promote the organic farming especially of vegetables and fruits, which would eventually lead to increased usage of neem products. 9. In order to have focused development of sound technologies, respective departments should establish nodal institutes in identified areas. The possibilities of upgrading the existing technology centre to nodal national centre should be examined. 10. The work on Genetic Improvement aimed at early fruiting, increased fruit yields, higher limonoid contents, high oil content, wider adaptability or specific varieties for specific regions be undertaken at the institutes of ICAR, ICFRE, CSIR, etc. 11. Certain new areas of research in addition to Insect and Nematode Control about the role of Neem such as a herbicide, plant growth enhancers, have come to the light and research on these need to be taken up on large scale.

Technical Digest Issue - 6 12. All gaps in research to be identified and addressed to increase the acceptability of neem products worldwide. 13. A census of neem trees in the country be taken up by Ministry of Environment and Forestry. 14. Newly created Aromatic and Medicinal Plant Board should take necessary steps for popularization, technology generation and promotion of neem based technologies. 15. ICAR should examine the possibility of establishing National Research Centre on neem on lines of existing individual crop based centres. 16. To ensure the quality of the product, there is need to establish / identify a National Agency / Organisation. 17. Various sources of data indicated that the neem tree population in India ranges from 17 to 20 million. In view of the tremendously increased demand for neem and neem based products, extensive cultivation of neem be undertaken in vast dry lands / waste lands in India and other African countries. 18. There should be free access to knowledge and exchange of information on neem for its widespread use. The next World Neem Conference is proposed to be held in Africa, preferably in Nairobi. Dr. Tiwari in his address informed that a stamp on neem will be released by President of India. Further, he elaborated that neem has capacity to contribute pure water and air to the environment and hence it is eco-friendly. Neem is a friendly tree as it contributes to preventive health care. Further, he emphasised that the knowledge of germplasm should be shared at world level. Restrictions in this area to be removed. In a liberalised economy, we will be moving in this direction to ensure economic growth for all and poverty alleviation at the global level. India being the custodian of traditional knowledge and wisdom on Neem, would like to give a lead so that the neem serves as saviour for solving the manifold problems of mankind. VI. Observations The undersigned also had an opportunity of attending the World Neem Conference held in Bangalore during 1993. Unlike that, the present one was dominated by business community as against the researchers then. In view of the liberalised World economy, world population is drawing closer to each other in a close knit. Entrepreneurs world over, would use neem for betterment of mankind, apart from making grandiose sums for themselves. Business community world over should also note true and noble qualities of neem in providing healing touch to all the living beings. It could also be said that the Neem could try to satisfy all possible NEEDS but not all GREEDS. Growing world population and its ever increasing demands has led to over exploitation of natural resources leading to their degeneration beyond recuperation. The NEEM because of its multifarious uses appears to be the sole saviour that can provide soothing effect and thus, save the living ones on earth. Hence, Neem deserves special treatments like Millenium tree, Wonder tree, TREE of INDIA. Release of commemorative stamp will be a small beginning in the right direction. VII. Utility to NABARD The programme has been highly useful to the undersigned in particular as it enabled him to have exposure to the latest knowledge and understanding on the subject. NABARD being a developmental bank has a special interest in the development of vast stretches of parched dry lands and nearly 34 million hectares of degraded lands of the country. Greening these lands and their upgradation could be enhanced by planting them largely with neem as part of afforestation programme, alley cropping, bund planting, shade tree, timber tree, medicinal plant, etc. Mobilisation of local institutions like VWC, VDC, VVV Clubs, SHGs, SMSs for collection and processing of neem seeds / kernels will be a big step in providing millions of landless people, widows, aged people with job opportunities which will enable them in earning their livelihood in their respective livelihood space. Several industrial houses and private entrepreneurs are also imparting training programmes on collection of quality seeds / kernels and their agro processing. Further, by-products of neem are finding new and highly beneficial uses like medicines for deadly and incurable diseases such as HIV AIDS, cancer, heart ailments, etc. Urea coating can save huge foreign exchange. Neem can also provide cheap, hygienic and near natural contraceptive. It is also effective controller of Malaria which afflicts millions in tropical and sub-tropical countries including India. Assisting in development of commercial products by exploiting the useful traits of neem could give NABARD ample opportunities in expanding its business avenues and simultaneously providing service as a developmental organisation in the near future.

Dr. B F HULAGUR

READERS OPINION
Dear Sir, We are in receipt of your letter dated 1 April, 2003 along with the technical digest issue 5 July September 2002. I have gone through it with interest and the articles included are very topical. The printing and presentation is very good. Through the areas covered in the digest it very clearly brings out the active participation of NABARD in establishing knowledge connectivity as pointed out by the Honble President in his Independence Day broad cast. The subjects cover some very interesting field and exhibit the resourcefulness/innovational of the entrepreneurs. The article on Diversifying Agriculture registering the brilliant achievement of Sri Darbara Singh Tabiba is very inspiring and eye-opener. Many more like him are needed to meet the challenge of globalization. One particular aspect I wish you to request to consider is the reader of your digest in case they are farmers. If it could be in regional language it will have much greater reach. All said and done journal is excellent and I wish it all success. - Swami Shashankananda, Secretary- Ramakrishna Mission Ashram

Dear Sir, Thank you very much for sending me the Technical Digest a quarterly journal of NABARD (issue 4 & 5 AprilJune and July September 2002). I found the issues very informative and useful. I am sending the issues to our library to their wider use. - K. Prathap Reddy, Director, Institute of Rural Management, Anand

Dear Sir, Thank you very much for sending technical digest issue-5 of NABARD. This magazine is informative. I hope, you will continue to send technical digest issues to us in future. - Dr. R J Bojan, Director, MPEDA, Kochi

Dear Sir, Many thanks for forwarding the above issue of Technical Digest to us DDMs directly. In various forums in the District, the DDM of NABARD is looked upon as a resource person and there are occasions such as in BLBC meetings where various grassroots level doubts, some of which are of technical nature, need to be clarified. Articles and research studies published in the Technical Digest therefore come in handy for the DDM to deal with such queries. - Julius Machado, DDM-Junagadh

Dear Sir, Thank you very much for your letter enclosing the Technical Digest. Please accept my congratulations. - Dr. S. Ayyapan, DDG Indian Council of Agricultural Research