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1.

INTRODUCTION
The study of supply chain of spices and vegetables in Uttarakhand is very much important for development of farmers living standard as well as development of the states economy as a whole. It is also important to study different stakeholders from the input suppliers to the final customer along with the indirect stakeholders like private money lenders and institutional lenders. A supply chain or logistics network is the system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to the end customer. In the traditional vegetable supply chains, only vegetables of superior quality are purchased from farmers at the regional vegetable collecting centres and they are paid a premium price for such vegetables. In the traditional vegetable supply chains the post harvest losses are as high as 35 to 40 percent. This is a serious problem with regard to the traditional vegetable supply chains, as a considerable portion of the total harvest is lost and the cost is ultimately borne by the producer and the consumer. Uttarakhand, a state with diversified climatic conditions has the potential to produce a variety of horticultural crops and contributing a lot towards the national income however the state suffers from different mismanagement practices in the spices and vegetable supply chain, which includes infrastructural, technological as well as credit financial (credit related) problems. Fragmentation of supply chain is another problem. The state is comprises of13 districts, ten hills and three plains with uneven topography and unmatched cultures. So the state needs different and improved management practices and approaches than that of the other states. Agro-climatic conditions in hills are capable of supporting growth of variety of crop plants. Thus, opportunities exist for intensification and diversification of agriculture to realize yield potential of improved crop varieties. More than three-fourths of total population of Uttarakhand depends on agriculture for their livelihood and the economy is predominantly dependent on mountain agriculture in the hill districts. However, the land holdings are small and fragmented and irrigation facilities in these areas are limited. Soil and water conservation is another issue for inclusive development. For physical, geographical and environmental reasons, the scope for agricultural policies based on modern input-intensive agriculture is severely constrained in the hill regions. As a result, the majority of the rural population in the hills either survives on subsistence agriculture or migrates to other parts of the country for employment. The state faces the challenge of promoting livelihoods to retain people through
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local employment and income generation and to enhance their quality of life. At the same time, the hill districts of Uttarakhand have tremendous potential. The vast natural resources add to the states attractiveness as an investment destination, especially for tourism and agriculture- and forest-based industries. Also, it is the first one to be called an organic state. Uttarakhand is primarily an agricultural state although its share in the countrys total area and production is very small. The contribution of agriculture to the states domestic product is about 22.4 per cent and the population dependent on agriculture for their livelihood is about 75 to 85 per cent. The development of the hills is primarily linked to the development of agriculture and its allied activities. Since the hills are constrained in the development of large-scale industrialization, and due to infrastructure constraints the development of the service sector is also constrained, the growth and development of the agriculture sector remains the prime focus. 1.1 Company profile National Bank for Agriculture and Rural Development (NABARD) The present study on Status of Supply Chain Management of Vegetables in Uttarakhand with special reference to the vegetable growing clusters of Agrakhal and Maletha (Tehri Garhwal District) was undertaken under the summer placement scheme of NABARD. NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts in 1982. NABARD was established in terms of the Preamble to the National Bank for Agriculture and Rural Development Act, "for providing credit for the promotion of agriculture, small scale industries, cottage and village industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting IRDP and securing prosperity of rural areas and for matters connected therewith in incidental thereto". The Act was amended by Act No. 81 of 1985, Act No. 66 of 1988, Act No. 55 of 2000 and Act No. 48 of 2003. The mission of the bank is Promoting sustainable and equitable agriculture and rural development through effective credit support, related services, institution building and other innovative initiatives.

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Major role and functions of NABARD are1. NABARD is an apex institution accredited with all matters concerning policy, planning and operations in the field of credit for agriculture and other economic activities in rural areas. 2. It is an apex refinancing agency for the institutions providing investment and production credit for promoting the various developmental activities in rural areas. 3. It takes measures towards institution building for improving absorptive capacity of the credit delivery system, including monitoring, formulation of rehabilitation schemes, restructuring of credit institutions, training of personnel, etc. 4. It co-ordinates the rural financing activities of all the institutions engaged in developmental work at the field level and maintains liaison with Government of India, State Governments, Reserve Bank of India and other national level institutions concerned with policy formulation. 5. It prepares, on annual basis, potential credit plans for all districts in the country; these plans form the base for annual credit plans of all financial institutions engaged in rural areas. 6. It undertakes monitoring and evaluation of projects refinanced by it. 7. It promotes research in the fields of rural banking, agriculture and rural development. 1.2 Problem statement Uttarakhand is a large, low-cost producer of vegetables and horticulture is a sector with huge export potential. But, high transportation costs, inadequate storage facilities, a fragmented supply chain, poor technological inputs, poor irrigation network and weak quality standards at home are eroding its competitiveness. 30 to 40 percent of the vegetables being wasted as post harvest losses have eventually resulted in producers receiving a very low price for their produce while at the other end the consumers are compelled to pay a highly inflated price for their purchases. The infrastructure in Uttarakhand in terms of road, rail and rail links are not sufficient. It is compounded by challenges like lack of market intelligence, lack of warehouses, transportation etc. The information system is very much poor and farmers are unaware of the new technologies, schemes etc. Along with this, problems regarding credit availability to the farmers are also frequently found. This includes higher cost of credit, time consuming formalities,
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unawareness etc. Considering this facts, the present study has been undertaken entitled Status of Supply Chain Management of Vegetables in Uttarakhand with special reference to the vegetable growing clusters of Agrakhal and Maletha (Tehri Garhwal District)

1.3 Objectives
In the light of the above facts and problems the objectives of the research are stated as follows1. To study the status of existing supply chain management for vegetables grown by the farmers in the selected clusters in Uttarakhand. 2. To study the technologies and practices used by farmers of particular areas of Uttarakhand in spices and vegetable production, transport, storage and marketing. 3. To study the financial aspects of spices and vegetable supply chain management considering participation of MFIs, RRBs, SHGs as well as commercial banks. 4. To propose an improved strategy for spices and vegetable supply chain management in uttarakhand.

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2. OVERVIEW OF VEGETABLES AND SPICES INDUSTRY


Vegetable and spices cultivation in India dates back to several centuries before the dawn of Christianity (Kaul, 1989). More than 40 kinds of vegetables belonging to different groups are grown in the country, right from the sea level to areas close to snow line. India is second largest producer of vegetables, next only to China. India ranks first in the world in production of cauliflowers and pea and second in world in production of broccoli, brinjal and onion. At present, vegetables are grown on five million hectares of land in the country. Quantitatively, vegetable ranks after rice and wheat in Indian diet (Dey, 2005). These are the main sources of supplying all the essential nutrient elements required by human body. India is the country considered as Home of spices. There are different spices present in India like ginger, turmeric, chilli, cardamom, cassia, clove, coriander etc India is the country considered as Home of spices. It was the lure of spices that brought Portuguese, French, and British to Indian shores. India bestowed with wide range of agro climates and biodiversity produces 125887 thousand MT of vegetables from an area of 7803000 hectares with average productivity of 16.1 MT/ha and produces 4103 thousand MT of spices in an area of 2603000 ha with average productivity of 1.6 MT/ha. The percent share of vegetables and spices in production of horticultural crops in India are 60.84 and 1.98 respectively. The percent share of vegetables and spices in area under horticultural crops in India are 39 and 13 respectively (Indian Horticulture Data Base 2008, National Horticulture Board). In vegetables production, India is next only to China having a share of 14.4% to the world production. Adoption of high yielding cultivars and FI hybrids and suitable production technologies has largely contributed for higher production and productivity. Per capital consumption has also increased from 95 gram to 175 gram per day. More than 40 kinds of vegetables belonging to different groups, namely cucurbits, cole crops, solanaceous, root and leafy vegetables are grown in different agro-climatic situations of the country. But Indias share in global vegetables trade has remained at only 1.7 per cent. In India the leading producers of vegetables are West Bengal (17%), Uttar Pradesh (15%) and Bihar (11%) and in spices Andhra Pradesh (30.1%), Rajasthan (12.7%) and Gujrat (8.7%). Major vegetables and spices produced in India along with their percent share in area and production are given below-

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Table 2.1 Percent share of different spices and vegetables in area and production in India % SHARE IN CROP AREA % SHARE IN PRODUCTION

VEGETABLES POTATO ONION TOMATO BRINJAL 22.9 10.3 7.3 7.3 27.4 9.7 8.2 7.6

SPICES CHILLI TURMERIC GARLIC GINGER 30 7 6 4 30 20 20 9

Source- Indian Horticulture Data Base 2008, National Horticulture Board

But In India 30 to 40 percent of the vegetables being wasted as post harvest losses have eventually resulted in producers receiving a very low price for their produce while at the other end the consumers are compelled to pay a highly inflated price for their purchases. There are 5100 cold storages in India but 60% of them are present in only 6 states and 83% are for only potato, which is a major problem. Even transport costs to international markets are 20 to 30% higher in India compared to other countries.

2.1 Present status of vegetable and spices industry in the state of Uttarakhand
With four agro climatic zones viz. Cold desert- Nilong valley, alpine zone- Gangi, temperate- Dhanolty and Subtropical zone-Rishikesh Uttarakhand offers great opportunity for sourcing of horticultural commodities due to its diverse agro climatic conditions, small size land holding and cheap labours. Vegetables and spices produced can be sourced from the area of abundance to supply them to the promising and profitable market. Substantial areas are under vegetable cultivation both hilly areas and plains. Uttarakhand offers great opportunity for sourcing of horticultural commodities due to its diverse agro climatic conditions, small size land holding and cheap labours. Peas, potato
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and tomato are major vegetables and ginger, turmeric, garlic and chilli are major spices being produced in Uttarakhand. These commodities can be sourced from the area of abundance to supply them to the promising and profitable market. The area under fruit cultivation is quite high in Uttarkashi and, in almost all the hill regions, substantial areas are under vegetable cultivation. The hill districts of Uttarakhand have diversified into the production of condiments and spices like chillies, ginger, and garlic. Almora, Tehri, Champawat, Pithoragrh etc seem to be the promising districts for its production. A wide range of agro climatic conditions of the state are suitable for off-season production of vegetables for sustainable income to farmers. Different offseason vegetables found are tomato, cauliflower etc. The area under vegetables is 80.584 thousand ha and production is 1036.2 thousand MT. The average productivity is 12.9 MT/ha and area under spices is 3.3 thousand ha. Production of spices is 2.9 thousand MT and average productivity is .9 MT/ha (Indian Horticulture Data Base 2008, National Horticulture Board), which is low, and can be doubled with the different technological interventions. Traditional spices and vegetable supply chain in uttarakhand the engage in moving vegetables from the producer to the consumer are prone to various sources of inefficiencies. Farmers in vegetable producing areas are unable to attract competitive buyers. Many of the farms are located in relatively isolated areas, a considerable distance from improved roads making access to competitive markets difficult and costly. Lack of bargaining power along with various credit bound relationships with the buyers has lead to farmers being exploited during transaction, where most of the farmers become price takers. The structure of the traditional vegetable supply chains is such that there are a large number of intermediaries (e.g. vegetable collectors, transporting agents, commission agents etc.) between the producer and the consumer. Addition of the marketing margins of all these intermediaries coupled with almost 30 to 40 percent of the vegetables being wasted as post harvest losses have eventually resulted in producers receiving a very low price for their produce while at the other end the consumers are compelled to pay a highly inflated price for their purchases. Agro-climatic conditions in hills are capable of supporting growth of variety of crop plants. Thus, opportunities exist for intensification and diversification of agriculture to realize yield potential of improved crop varieties. More than three-fourths of total population of Uttarakhand depends on agriculture for their livelihood and the economy is predominantly dependent on mountain agriculture. However, the land holdings are small and fragmented and
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irrigation facilities are limited. Soil and water conservation is another issue for inclusive development. For physical, geographical and environmental reasons, the scope for agricultural policies based on modern input-intensive agriculture is severely constrained in the hill regions. As a result, the majority of the rural population in the hills either survives on subsistence agriculture or migrates to other parts of the country for employment. The state faces the challenge of promoting livelihoods to retain people through local employment and income generation and to enhance their quality of life. At the same time, the hill districts of Uttarakhand have tremendous potential. The vast natural resources add to the states attractiveness as an investment destination, especially for tourism and agriculture- and forestbased industries. Also, it is the first one to be called an organic state. Uttarakhand is primarily an agricultural state although its share in the countrys total area and production is very small. The contribution of agriculture to the states domestic product is about 22.4 per cent and the population dependent on agriculture for their livelihood is about 75 to 85 per cent. The development of the hills is primarily linked to the development of agriculture and its allied activities. Since the hills are constrained in the development of large-scale industrialization, and due to infrastructure constraints the development of the service sector is also constrained, the growth and development of the agriculture sector remains the prime focus.

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Institutional lender

Private money lender

Seed companies

Fertilizer companies

Plant protechtion materials companies Farmers

Labors

Produce

Processor

Middle Men (Wholesalers, commission agents)

Direct Selling

Direct To consumer s

Processing Plant

Mandi

Different processed Products like Ketchup, Puree, and Paste

Small Vegetable Shops

Consumers

Exhibit 2.1Prevailing supply chain structure in India and Uttaranchal

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2.2 District Profile- Tehri Garhwal


Tehri garhwal district is situated in North West of Uttarakhand state and lies between latitude 30.03 N and 30.30 N and longitude 77.56 E and 79.04 E. It is surrounded by Uttarkashi, Rudraprayag, Chamoli ,Pauri Garhwal and Dehradun districts on North, North East, North East, South and West respectively. The entire district is mountainous and altitude ranges from 300 to 2250 meters. Bhagirathi, Bhilangana and Alakananda are main rivers of this district and Yamuna forms the Western boundary of the district. Total geographical area of the district is 4453 sq. Km. and the total population of the district is 6.05 lakh, of which 94% i.e. 5.45 lakh comes under rural population. Population density is 137 per square km. The district is comprises of 1776 inhabited villages. 69% of total area is covered by forest and only 11% is under agriculture. The average per capita availability of land is .11 ha or 5.5 nalis. The district has 92 bank branches out of which 49 branches are of commercial banks, 19 branches are of Uttaranchal Gramin bank, 23 banks branches are of Tehri-Garhwal District Central Cooperative bank and 1 branch is of U.P. Sharkari Gram Vikas Bank.Out of 1776 villages 1494 villages are having electricity and 1272 villages are having pucca roads. There is no railway present in the district. There are 10 mandis and 78 godowns present in the district but no coal storage facility is available. Major crops grown in the districts are wheat, barley, potato, black gram, lentil,mustard, pea, maize, ginger etc. Due to suitable climate this district has emerged as an important vegetable growing area of the state. Vegetables grown in this area are potato, tomato, cucumber, pumpkin, arbi, French bean, pea, onion, cauliflower, reddish etc. Cultivation of off season vegetables is an important activity amongst the farmers of this district. There are some pockets in the district like Satyun, Agrakhal, Mussorie Chamba belt, Bhilangana valley etc. producing off season vegetables in good quantity. Turmeric, ginger and chillies are few most important spices cultivated in the district. Ginger is considered as one of the most important commodity of the reason. In Tehri Rio-DeJenario variety of ginger is cultivated. The crop is harvested in September-November months. Nainbagh in Jaunpur block, Chowki Dagar in Kirtinagar block and Agar in Agrakhal block are some of the major Ginger producing areas of the district. The produce are sold in local markets and small merchants as well as to the bigger markets of Dehradun, Haridwar and Delhi.
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3. RESEARCH METHODOLOGY
To accomplish the objectives of the study, the following approach was adopted for the study. 1. AREA OF STUDY Tehri Garhwal district of Uttarakhand was the area of study. Two clusters in the district were studied, namely1) Agrakhal 2) Maletha These clusters were chosen because most of the populations of these clusters are associated with agriculture and they are associated with production and marketing of spices and vegetables commercially. 2. RESEARCH DESIGN Exploratory and Descriptive research design were used keeping in view the nature and scope of the study. 3. DATA SOURCES Both primary and secondary sources of information were used for the study. Primary data sources:This included farmers, traders, and government and corporate officials, NGO and SHG members, bankers working in the concerned field. From farmers and traders information regarding cost of marketing and problems faced during production and marketing was collected. From government and corporate officials, NGOs and SHGs and bankers information about the existing infrastructural facilities available, credit facilities, ongoing schemes was collected.

Secondary data sources:This included district PLPs State Focus Paper, government records, horticultural

database, internet, books, journals, research papers, and student thesis. From secondary sources information about the work done in the past and the present status was collected and was used as a base to formulate the present study.

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4.

RESEARCH INSTRUMENTS Well structured questionnaires with both open and closed ended questions were used as well as in-depth interviews were conducted.

5. SAMPLING PLAN 5.1 Sampling units:Three types of sampling units were selected: Farmers. Bankers and government officials. Member of SHGs, farmer clubs and NGOs and traders. 5.2 Sampling technique:Farmers: sampling technique adopted was mixed of stratified random, judgmental and snowball technique. Bankers, member of SHGs, farmer clubs and NGOs: judgemental sampling was followed with snowball technique. For selection of farmers, a complete listing of all the villages of the cluster was done. Sample was taken from all the villages depending on their association with cultivation of spices and vegetables 6. SAMPLE SIZE Sample surveyed in the present study consisted of 60 farmers (30 from each cluster) and no. of officials, NGO and SHG members vary according to the cluster. 7. DATA ANALYSIS First the data was validated, classified, coded and tabulated. For Data Analysis different statistical tools were used including percentage analysis, ratio method, means and averages. Data were presented in the form of table, graphs and charts.

8.

DURATION OF THE STUDY The study was conducted from 8th July 2009 to 31st of July of 2009. The total duration of the study was of eight weeks.
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9. LIMITATIONS OF THE STUDY The present study has been carried out systematically using scientific methodology. Every care was taken to select the representative sample. The accuracy of the data was ensured through cross-checks. However, few limitations pertinent in every socio-economic survey may not be overruled though these limitations would hardly limit the relevance and fidelity of the results derived. Some of the limitations in this study are as under: 1. Due to uneven topography and scattered households in the area studied the study was time consuming even though sample size is small. 2. Use of Garhwali language by most of the villagers was impediment while conducting survey. 3. As the project was under NABARD, villagers expected financial gains/subsidy as well as other help and often deviated from the concerned subject. 4. In few cases the opinion and views of the respondents were guided by the protocol of their respective organizations and their preconceived notions. 5. As no farm records were maintained by the sampled farmers, the data was, therefore, collected by survey method based on their memory power and past experience. Though, due care was taken by cross checking the information, the possibility of few slips from the memory of the respondents could not, however, be ruled out. 6. Most of the traders in the study markets did not cooperate to the extent desirable as they were afraid of divulging their trade secrets. 7. Study is more applicable to the hilly areas of Uttaranchal. However some of the findings can be generalized for the whole state of Uttarakhand.

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4. RESULTS AND DISCUSSIONS


The findings of the study are discussed below with the help of different tables and exhibits 4.1 RESPONDENTS PROFILE The surveyed respondents profiles are discussed below with the help of exhibits and tables. Educational qualification of respondents in Agrakhal Educational qualification of respondents in Agrakhal is shown below in Exhibit No 4.1.

12TH PASS 14%

GRADUATE 3% ILLITERATE 23% 4TH PASS 7%

10TH PASS 23% 8 TH PASS 27%

6 TH PASS 3%

Exhibit 4.1 educational qualification of respondents from Agrakhal

In Agrakhal cluster it was found that most of the respondents were either illiterate or had studied only up to 10th class. Only one of the respondents was graduate. It was found that educational qualification had no significant relation with production and marketing of spices and vegetables in the cluster except few of the villagers other than the respondents quit agriculture after doing higher studies.

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Educational qualification of respondents in Maletha Educational qualification of respondents in Maletha is shown below in Exhibit No 4.2.
ILLITERATE 10% 6 TH PASS 7% GRADUATE 23%

8 TH PASS 17% 12TH PASS 23% 10TH PASS 20%

Exhibit 4.2 educational qualification of respondents from Maletha In Maletha cluster it was found that number of illiterates is comparatively less to that of Agrakhal cluster. Twenty four percent of the respondents had studied up to sixth or eight classes whereas twenty percent of the respondents studied up to 10th class. Seven of the respondents were graduates and seventh were studied up to class twelve. It was found that educational qualification had no significant relationship with production and marketing of vegetables in the cluster except agriculture did not find favour with graduates. They preferred to moving out of their villages in search of alternative employment. Distribution of sample respondents according to land holding Farmers here have been classified according to their total land holding. In Table below farmers have been categorized according to the size of their land holdings in three categories small, medium and large. The classification of farmers in Agrakhal is shown in table 4.1 and the classification of farmers in Malethais shown in table 4.2.

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AGRAKHAL
Table 4.1 Distribution of sample respondents according to land holding in Agrakhal Land holdings (hectare) Up to 1 1 to 2 >2 Number of Farmers: 21 5 4 Percentage 70 16.66 13.33

It is quite evident from table 4.1 that seventy per cent of farmers were having land holding up to 50 nali i.e. one hectare, followed by sixteen point six per cent in case of land holding between one to two hectare and thirteen percent of the respondents were having land holding more than two hectare. MALETHA Table 4.2 Distribution of sample respondents according to land holding in Maletha Land holdings (hectare) Up to 1 1 to 2 >2 Number of Farmers: 21 4 5 Percentage 70 13.33 16.66

It is quite evident from table that seventy per cent of farmers were having land holding up to 50 nali i.e. one hectare, followed by sixteen point six per cent in case of land holding more than two hectare and thirteen percent of the respondents were having land holding between one and two hectare. Leasing of land In both the clusters formal leasing was practically absent. In Agrakhal clusters only one respondent took land in verbal lease. The farmer is a large progressive farmer and having
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large number of owned land too. In Maletha cluster five of the respondents took land on verbal leasing. Out of them four respondents are Nepali farmers from Darjeeling and they do not have their own land where as the remaining person was a farmer having his own land too. 4.2 AREA PROFILE General information about the clusters studied and different villages situated in the studied clusters are discussed below. Agrakhal clusterThe Agrakhal cluster is located at Rishikesh Chamba road, 92 km away from district head quarter Tehri. It is 12 km away from the block office Narendranagar. There are two local markets viz. Fakot and Agrakhal. Six villages come under this cluster. There are four gram panchayats viz. Agar, Kasmoli, Bhetan and Bhingarki. The cluster is situated in Narendranagar block of the Tehri Garhwal district. It falls under watershed Hewal and micro watershed Bhinukhal. The details of the villages are shown below in table 4.3 Table 4.3general information on Agrakhal cluster VILLAGES AGAR KASHMOLI BHINGARKI BHETON CHILOGI JANGLETH P.O. AGARKHAL AGARKHAL FAKOT FAKOT AGARKHAL FAKOT FAMILY 127 90 80 76 47 21 POPULATION TOTAL LAND(HA) 585 352 445 384 202 98 92.646 72.113 34.782 73.173 3.768 10.956

Source- Block Development Office, Narendranagar

Total land of the cluster is 628.48 ha; out of which 29.40% is under forest i.e. 184.77 ha, 4.27% under habitation, 1.17 % slopes, 1.25% is covered by water, 46% i.e. 287.438 ha land is under agriculture, 11.86 other land and 6.05% is barren land 11.86 other land. Exhibit 4.3 shows the land use pattern in Agrakhal cluster.

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1.25% 6.05%

1.17%

LAND USE UNDER FOREST HABITATION

11.86%

29.40%

IRRIGATED UNIRRIGATED OTHER LAND BARREN

43% 3% 4.27%

WATER COVERED AREA

Exhibit 4.3 land use pattern of the cluster

Status of agriculture Total agricultural land of the cluster is 287.434 ha. The average land holding is .65 ha per family. About 97 percent of land holding is less than 1 ha. Total irrigated land is about 18.3 ha, which is only 6.3 percent of total agricultural area. Table 4.4 shows different crops grown in Agrakhal cluster. Table 4.4 crops and cropping season of Agrakhal cluster CROP GINGER TURMERIC GARLIC PEA RADISH FRENCH BEAN CABBAGE CAULIFLOWER ONION CUCUMBER PUMPKIN SEASON MARCH-NOV MARCH-MARCH JAN/FEB-MAY/JUNE SEPT-DEC JUNE-AUG 2-3 TIMES A YEAR JUNE-AUG/SEPT JUNE-AUG/SEPT JAN/FEB-MAY/JUNE JULY-AUG/SEPT JUNE-AUG
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TOMATO BRINJAL POTATO CHILLI COLOCASIA BOTTLE GOURD

FEB/MARCH-JULY/AUG 2-3 TIMES A YEAR 2-3 TIMES A YEAR JULY/AUG-NOV/DEC MARCH/APRIL-OCT/NOV JUNE-AUG

Cropping pattern of the Agrakhal cluster Table no. 4.5 shows the cropping pattern of followed in Agrakhal cluster. Table 4.5 showing different crops grown in Agrakhal by different numbers of farmers CROP GINGER TURMERIC GARLIC PEA RADISH FRENCH BEAN CABBAGE CAULIFLOWER ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI COLOCASIA BOTTLE GOURD NO. OF RESPONDENTS GROWING THE CROP 30 16 19 6 8 8 15 5 14 13 9 13 7 10 9 14 2

From the table it can be observed that ginger is a crop which was grown in the cluster by almost all the farmers. Other crops grown mostly in the cluster were turmeric, garlic,
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cabbage, onion, colocasia or arbi etc. The preference for ginger and turmeric by most of the farmers was on accounts of less water intake by the crops and low availability of water in the region. Climatic conditions in Agrakhal cluster The altitude of the villages varies from 1340 metre to 1800 metre. The Agrakhal market is situated in a height of 1550 metre. The uneven topography of the cluster results in an unavoidable problem in spices and vegetable supply chain in terms of procurement, marketing and infrastructure development due to transportation problems. The temperature during summer varies from 22 degree Celsius to 35 degree Celsius and in winter it varies from 0 to 20 degree Celsius, which accounts for suitable climate for growing spices and vegetables in this area. The average annual rainfall is around 1600 mm. 80 percent of which falls in the monsoon season between June to September and 20 percent in winter season between Decembers to February. Most of the farmers are dependent on rainfall for cultivation and little change in rainfall pattern leads to huge reduction in production of vegetables. Frost is a common problem in the cluster commonly occurs between Decembers to February.the region also hit by pre monsoon storms between April to June. The place experiences at an average 200 sunny days annually. Direct sunlight on the agricultural fields also results in a bigger problem to the farmers. Sleet and snow fall is another problem mainly affecting the production of spices and vegetables in Kasmoli village of the cluster located in the higher ranges. Soil and topography of the cluster As mentioned earlier the cluster is topographically heterogeneous. This ranges from 1340 to 1800 metre from the sea level. It results in difficulty in transportation of produce. The district horticulture department established one rope way to transport the spices and vegetables from Kasmoli to the main road but that is not sufficient. There are villages like Chillogi, Bhingarki etc. which are at a very lower hight compared to the main road and the Agrakhal mandi. Even all the farmers from Kasmoli mainly small and marginal farmers do not want to use the ropeway because of its location which is far away from the Agrakhal mandi. The use of the trolley results in extra distance or extra transportation cost. The soil types found here are mainly laterite, alluvial and colluvial. About 80 percent of the soil is laterite soil. The soils are clay soil, loamy soil or mixture of both the types. The
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soils are having good capacity to retain water. The top soil depth ranges from 7.5 cm to 30 cm in the cluster. Towards valleys the top soil depth increases. Some of the specific characteristics of the soil found in the Agrakhal cluster are Most of the soil found here is acidic. The humus availability in the soils is low. The soil is deficient of organic carbon. It is also deficient in nitrogen and potash. The soil is under acute infection from fungus The soil is also infected by presence of different soil pests and insects.

Status of irrigation in Agrakhal cluster The main water source of the cluster is rainfall. Other sources of water are spring, streams, naulas, rain water harvesting tanks etc. but most of them are dry and only few are perennial. Scarcity of water is the main problem in the cluster not only for agricultural purposes but also for domestic purposes. Four of the villages out of the 6 villages in the cluster do not have regular drinking water facility. Only 7.4 percent of the total agricultural land is under irrigation. The irrigated lands are mainly located in the lower villages. The main channel of irrigation is canals, but most of them are not functioning. Land sliding is a natural calamity responsible for the same. Although few of the progressive farmers constructed some rain water harvesting tanks for agricultural practices and even adopted practices like drip irrigation but most of them are not capable of construction of costly tanks and besides farmers use the stored water for domestic purposes also. The current status of irrigation in the different villages of the clusters is shown below in table no 4.6.

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Table 4.6 information of irrigated land in Agrakhal DRY VILLAGES AGAR KASHMOLI BHINGARKI BHETON CHILOGI JANGLETH TOTAL IRRIGATED(HA) 4.258 3 3.358 4.785 2.966 2.966 21.333 LAND(HA) 88.388 69.113 31.424 68.388 0.802 7.99 266.105 TOTAL LAND(HA) 92.646 72.113 34.782 73.173 3.768 10.956 287.438

Source- Block Development Office, Narendranagar

Existing technologies and practices in Agrakhal In this cluster traditional practices of production were practiced. Bullocks were used for field preparation. Use of tractor or power tiller was not possible in the fields because of slopes and hilly topography. In the cluster terrace farming was adopted and contours were made for growing crops. Intercropping between ginger and turmeric and cucumber and maize were common. The farmer used bigger size of propagation material for production of ginger, according to them this practice helps to get more germination and more productivity Other technologies present and used by the farmers included rope way for transportation along with a Transition house provided by horticulture department, net house to protect crop against sleet, Compost tanks, wooden and stone fencing etc. The ropeway connected Kasmoli village to the main road. There was two baskets tied with the rope in which produces are transferred. No fuel or power source is needed for running the trolley. It runs mechanically. Chakbandi was not practiced in the cluster because of hilly topography as well as unequal water availability. Maletha clusterThe Maletha cluster is located at Devprayag Srinagar road, 52 km away from district head quarter Tehri and 140 km away from the state capital Dehradun. It is 4 km away from the block office Kirtinagar. There are two local markets viz. Kirtinagar and Srinagar. Six villages comes under this cluster. They all comes under nyai panchayat Maletha. The cluster is situated in Tehri Garhwal district in the state of Uttarakhand. It comes under the Tehsil Devprayag. The details of the villages are given below in table 4.7.
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Table 4.7general information on Maletha cluster TOTAL AGRI VILLAGES NO. OF G.P. POPULATION 1191(260 MALETHA MUNDOLI RAMPUR JHAKHONI GHIDIYAL JIYALGARH SEMA GHILDIYAL JIYALGARH GHILDIYAL 899 (203) 272 (64) 69 39.916 14.344 12.18 101.531 46.8 45.63 MALETHA MUNDOLI RAMPUR FAMILY) 752 (160) 284 (61) 124.514 90.21 13.682 312.4 208.048 42.807 LAND (HA) TOTAL LAND(HA)

Total land of Maletha cluster is 757.216 ha, out of which 294.846 ha is under agriculture. The average land holding per family is .385 ha. Total land of Jiyalgarh and Maletha is 359.2 ha, out of which land under agriculture is 138.84 ha, and wasteland is 169.87 ha, under forest 50.49 ha. The land use pattern of the cluster is shown in exhibit 4.4.

14.04% LAND USE PATTERN LAND USE UNDER FOREST 47% LAND USE PATTERN UNDER AGRICULTURE 38.65% LAND USE PATTERN WASTELAND

Exhibit 4.4 land use pattern in jiyalgarh and Maletha Climatic conditions in Maletha cluster The altitude of the villages varies from 515 metre to 650 metre. The cluster can be considered as having a plain topography.
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The temperature during summer varies from 25 degree Celsius to 43 degree Celsius and in winter it varies from 10 to 30 degree Celsius, which accounts for suitable climate for growing spices and vegetables in this area mainly in winter. The average annual rainfall is around 1200 to 1500 mm, most of which falls in the monsoon season between May to October. The rainfall is low as compared to other places of the state. Most of the farmers are dependent on rainfall for cultivation and little change in rainfall pattern leads to huge reduction in production of vegetables despite of having different sources of irrigation. Sleet is another problem mainly affecting the production of spices and vegetables in different villages of the cluster. Soil and topography of the cluster As mentioned earlier the cluster is topographically homogeneous except the village Mundoli located at a higher altitude. This ranges from 515 to 650 metre from the sea level. It results in easy transportation of produce. Only absence of mandi in nearby area results in higher transportation cost. The soil types found here is mainly loamy sand soil. The water retention capacity is medium. Some of the specific characteristics of the soil found in the Maletha cluster are The soil fertility is heterogeneous. The soil is also infected by presence of different soil pests and insects.

Status of agriculture

Total land of Maletha cluster is 757.216 ha, out of which 294.846 ha is under agriculture. The average land holding is .385 ha per family. About 90 percent of land holding is less than 1 ha. Total irrigated land is about 48.635, which is only 16.49 percent of total agricultural area. Table 4.8 shows different crops and their seasons grown in Maletha cluster.

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Table 4.8 crops and cropping season of Maletha cluster CROP CARROT OKRA CORIANDER RAI PALAK GARLIC PEA RADISH FRENCH BEAN CABBAGE CAULIFLOWER ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI SEASON OCT - NOV/DEC MARCH-APRIL OCT NOV JAN- FEB/MARCH JAN/FEB-MARCH/APRIL JAN/FEB-MAY/JUNE SEPT-DEC JUNE-AUG 2-3 TIMES A YEAR JUNE-AUG/SEPT JUNE-AUG/SEPT JAN/FEB-MAY/JUNE JULY-AUG/SEPT JUNE-AUG FEB/MARCH-JULY/AUG 2-3 TIMES A YEAR 2-3 TIMES A YEAR JULY/AUG-NOV/DEC

Cropping pattern of the Maletha cluster

In Maletha cluster it was observed that onion, tomato, rai, spinach, okra, brinjal were some of the vegetables mostly grown in Maletha cluster. The soil of the cluster was very much suitable for these crops and there was good irrigation system present. Although in 2009 due to late monsoon there were scarcity of water in the cluster, but it was temporary. The existing cropping pattern of Maletha cluster is shown in table 4.9.

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Table 4.9 different crops grown in Maletha by different numbers of farmers CROP CARROT OKRA CORIANDER RAI SPINACH GARLIC PEA RADISH FRENCH BEAN CABBAGE CAULIFLOWER ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI COLOCASIA CAPSICUM NO. OF FARMER GROWING THE CROP 8 21 12 21 20 4 12 14 20 18 19 20 5 4 20 14 4 9 5 3

Status of irrigation in the Maletha cluster The main source of irrigation in the cluster is the water channel collected water from higher areas i.e. water cannel from Dangchoura. Other source of water is mainly rainfall. Rain water harvesting tanks are rare. The fields are connected with concrete water channels but during this season (May-June) most of them are dry and only little amount of water is present in the main channel. Scarcity of water is the main problem in the cluster not only for vegetable cultivation but for other agricultural purposes. The main source of drinking water is tube well.

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Only 16.4 percent of the total agricultural land is under irrigation. The irrigated lands are mainly located in the lower villages. The main channel of irrigation is canals, but most of them are dry due to absence of rainfall in last few months. Although few of the progressive farmers constructed some rain water harvesting tanks for agricultural practices and even adopted practices like drip irrigation but most of the farmers are not capable of constructing costly tanks and those whoever constructed such tanks uses them for other grain crops like rice, mandua etc. The general status of irrigation in the different villages of the clusters is presented below in table 4.10. Table 4.10 information of irrigated land in Maletha DRY VILLAGES MALETHA MUNDOLI RAMPUR JHAKHONI GHIDIYAL JIYALGARH SEMA Total 0.556 7.473 1.103 48.635 39.36 6.871 11.077 250.211 39.916 14.344 12.18 294.846 IRRIGATED(HA) LAND(HA) 29.317 3.896 6.29 99.197 86.314 7.392 TOTAL AGRI LAND (HA) 124.514 90.21 13.682

Existing technologies and practices in Maletha In this cluster also traditional techniques were used for production, transportation, storage etc which are having very less significance. Bullocks were used for field preparation. Use of tractor or power tiller was not possible in the fields because of slopes and hilly topography. Use of power tiller was tried by some farmers but it was not successful. In this cluster also terrace farming was adopted and contours were made for growing crops. Other technology includes Wooden fencing, boundary of field made of stone, parkunda, a practice of storing grasses and fodders by tying them on tree, Production of organic manures by storing cow dung mixed with leafs and straw near roadside or field side, wooden sticks are used for support in tomato etc.

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Some of the unique practices followed in this cluster like appointment of a Person as a guard or in local term bandrol against wild animals, appointment of a person for distribution of irrigation water locally known as kulha, creation of mindal surrounding every contour which is a small strip of land used to grow seedlings. Chakbandi was not practiced in the cluster because of unequal soil fertility as well as unequal water availability.

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4.3 INPUT SUPPLY FOR SPICES AND VEGETABLE PRODUCTION The availability of different inputs for vegetable production plays an important role in the vegetable supply chain in Uttarakhand. The existing situations studied in the clusters are discussed below. Seeds Seeds supply and availability in Agrakhal is shown in table 4.11 along with sources and prices. Table 4.11information on seed suply in Agrakhal CROP SEED REQUIREM ENT GINGER TURMERIC GARLIC PEA RADISH FRENCH BEAN CABBAGE CAULIFLOWE R ONION 500 GM /Ha 12.5KG/ Ha 60 RS/50 Gm 400 Rs/Kg 160 Rs/10 Gm CUCUMBER of seed HORTICULTURE HORTICULTURE/DEHRADUN,VA PUMPKIN TOMATO BRINJAL POTATO CHILLI COLOCASIA BOTTLE GOURD HORTICULTURE/DEHRADUN
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SEED PRICE

SEEDS SOURCE

LOCAL LOCAL LOCAL/HORTICULTURE 50 KG/ Ha 160RS/KG NGO/DEHRADUN, VAR- ARKIL DEHRADUN/CHAMBA

70-80 KG/Ha 500 GM /Ha 180 Rs/10 Gm

DEHRADUN/CHAMBA HORTICULTURE/DEHRADUN

DEHRADUN/CHAMBA CHAMBA/HORTICULTURE

1 RS/SEED 500 GM /Ha 150GM/Ha 5000KG/Ha 225Rs/10gram 150/50 Gm 15-20/KG

R- MERO56 HYBRID/CHAMBA HYBRID/CHAMBA HORTICULTURE, LOCAL HORTICULTURE LOCAL

Seeds are procured mainly from branch of horticulture department, Fakot. Seeds are also given for demonstration by the department to the progressive farmers of the cluster. There is no subsidy in seeds. However some of the farmers purchases high quality hybrid seeds from Dehradun and Chamba markets. Seeds are available at right time and there is no problem in supply of seeds. In case of crops like Ginger and turmeric farmers use only local seeds i.e. seeds produced in the last season. Most of the farmers are unaware of the varieties name and importance but they are cultivating whatever is available from horticulture department branch. Seeds supply and availability in Maletha is shown in table 4.11 along with sources and prices. Table 4.12information on seed suply in Maletha SEED CROP CARROT REQUIREMENT SEED PRICE SEEDS SOURCE HORT. MOBILE TEAM HORT. MOBILE TEAM HORT. MOBILE TEAM, SRINAGAR HORT. MOBILE TEAM, SRINAGAR HORT. MOBILE TEAM, SRINAGAR SRINAGAR 50 KG/ Ha 160RS/KG HORT. MOBILE TEAM, SRINAGAR HORT. MOBILE TEAM 70-80 KG/Ha HORT. MOBILE TEAM, SRINAGAR

OKRA

CORIANDER

RAI

PALAK GARLIC PEA

RADISH

FRENCH BEAN

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CABBAGE

500 GM /Ha

180 Rs/10 Gm

HORT. MOBILE TEAM, SRINAGAR HORT. MOBILE TEAM, SRINAGAR SRINAGAR HORT. MOBILE TEAM HORT. MOBILE TEAM SRINAGAR,

CAULIFLOWER ONION CUCUMBER

500 GM /Ha 12.5KG/ Ha

60 RS/50 Gm 400 Rs/Kg 160 Rs/10 Gm of seed 1 RS/SEED

PUMPKIN

TOMATO

500 GM /Ha

225Rs/10gram

CHAMBA, SHIMLA, DEHRADUN SRINAGAR,

BRINJAL

150GM/Ha

150/50 Gm

CHAMBA, SHIMLA, DEHRADUN

POTATO

5000KG/Ha

15-20/KG

HORT. MOBILE TEAM, SRINAGAR SRINAGAR, CHAMBA, SHIMLA LOCAL, HORT. MOBILE TEAM HORT. MOBILE TEAM, SRINAGAR

CHILLI

COLOCASIA

CAPSICUM

Seeds are procured mainly from branch of horticulture department As well as Srinagar market. Almost all the farmers in Jiyalgarh purchases high quality hybrid seeds from Srinagar market in black. According to them seeds from markets are more reliable and also available at time. According to the farmers of the cluster they are not getting required seed at right time at right price. The seeds from horticulture department are also not very much reliable. Few progressive farmers also buy seeds from Dehradun, Camba and Himachal Pradesh.

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Fertilizers Fertilizer consumption, supply and availability in Agrakhal and Maletha cluster was studied and the findings are presented below.

Urea ,DAP 10%

Urea ,DAP, Potash 10%

Organic manure 80%

Exhibit 4.5 Fertilizer consumption in Agrakhal

Exhibit 4.5 shows that organic manures and cow dung are mostly used in the cluster. Only about 20% of the farmers used urea, DAP and Potash. Organic manures are produced in the households itself and cow dung is the major nutrient source. According to farmers of the cluster organic manure and cow dung are very effective and also it saves lots of expenditure. Those farmers uses urea, potash and DAP purchase them from cooperative mini bank.

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Fertilizer consumption, supply and availability in Maletha

Organic manure

UREA 17%

Urea ,DAP

Urea ,DAP, Potash

20% 60%

3%

Exhibit 4.6 Fertilizer consumption in Maletha

Exhibit 4.6 shows that organic manures and cow dung are mostly used in this cluster too. Only about 30%-40% of the farmers used urea, DAP and Potash. Organic manures are produced in the households itself and cow dung is the major nutrient source. Cow dung mixed with straw and leaves are kept near road sides which are used afterwards in the field. According to farmers of the cluster organic manure and cow dung are very effective and also it saves lots of money. Those farmers uses urea, potash and DAP purchase them from cooperative mini bank and Srinagar market.

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Plant protection materials Present status of plant protection materials supply and availability in Agrakhal cluster is discussed below. Plant protection materials, including mainly plant protection chemicals are used by 53% of the farmers. The materials are available from the horticulture mobile team, Fakot. There was 50% subsidy in all plant protection materials provided by the department of horticulture. Few of the farmers buy it from Dehradun market. But there is a major problem regarding use of Different plant protection materials due to lack of know how. Sometimes misguidance leads to wrong application of plant protection chemicals and it results in damaging crops or complete crop failure. In table 4.13 different chemicals used in the cluster is shown. Table 4.13 Plant protection materials supply and availability in Agrakhal P.P. MATERIAL INDOFIL Z-78 DIETHANIUM-14 BAVISTIN INDOFIL M-45 TATA TRACEL NET NO. OF FARMERS SOURCE 4 HORTMOBILE TEAM. 7 HORTMOBILE TEAM. 12 HORTMOBILE TEAM. 3 HORTMOBILE TEAM, DEHRADUN. 1 DEHRADUN 1 HORTMOBILE TEAM.

NO. OF FARMER USING P.P. MATERIAL NO. OF FARMER NOT USING P.P. MATERIAL

47% 53%

Exhibit 4.7 showing percentage of farmers using plant protection material


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Plant protection materials supply and availability in Maletha cluster is discussed below. Plant protection materials, including mainly plant protection chemicals are used by only 37% of the farmers. The materials are available from the horticulture mobile team, Kirtinagar. There was 50% subsidy in all plant protection materials provided by the department of horticulture. Few of the farmers purchase it from Chamba and Dehradun markets. But there is a major problem regarding utilisation of different plant protection materials due to lack of know how in farmers about how to apply, how much to apply, when to apply etc. Sometimes misguidance leads to wrong application of plant protection chemicals and it results in damaging crops or complete crop failure. Few of the farmers taking land in verbal leasing are also facing problem because they are not getting plant protection materials from horticulture mobile unit. In exhibit 4.8 percentages of farmers utilising plant protection materials are shown and in table 4.13 different chemicals used in the cluster is shown.
NO. OF FARMER USING P.P. MATERIAL NO. OF FARMER NOT USING P.P. MATERIAL

37%

63%

Exhibit 4.8 showing percentage of farmers using plant protection material Table 4.14 Plant protection materials supply and availability in Maletha NO. OF P.P. MATERIAL INDOFIL Z-78 DIETHANIUM14 4 HORTMOBILE TEAM. HORTMOBILE TEAM, CHAMBA, BAVISTIN 8 DEHRADUN
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FARMERS

SOURCE 5 HORTMOBILE TEAM, CHAMBA

HORTMOBILE TEAM, DEHRADUN, INDOFIL M-45 TATA TRACEL CARBONDAZIM BENGARD CHLOR GUARD 5 CHAMBA 4 DEHRADUN, CHAMBA 1 CHAMBA 2 CHAMBA, DEHRADUN 2 CHAMBA, DEHRADUN

Labour In Agrakhal cluster most of the farmers employed only family labour for spices and vegetable production and marketing. About seventy five to eighty percent of the farmers employ only family labour where as ten to thirteen percent of the farmers used to work collectively in the field along with the family labour. Only about ten percent of the farmers went for hired labour. Exhibit 4.9 shows percentages of different labour in Maletha cluster Per day charge or wage charged by hired labour in Agrakhal was Rs.70. Most of the hired labours are from local villages. Others are Nepali people resides in that cluster, however there was no problem in availability of labours round the year in the cluster.

COLLECTIVE LABOUR LOCAL LABOR, 13% HIRED LABOUR 10%

ONLY FAMILY LABOUR 77%

Exhibit 4.9 showing percentage of different types of labour utilisation . In Maletha cluster the farmers employed different types of labours for spices and vegetable production and marketing. Only about twenty percent of the farmers employed
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only family labour where as thirty percent of the farmers used to work collectively with other families in the field which is locally termed as Padiyal. About twenty five percent of the farmers went for hired labour from local villages and about twenty five percent of the farmers hired Nepali labours resides in that cluster. Exhibit 4.10 shows percentages of different labour in Maletha cluster. Per day charge or wage charged by hired labour in Agrakhal was Rs.60 to Rs.70. farmers of the cluster mentioned that there is no problem in getting hardworking and skilful labours.

ONLY FAMILY AND PADIYAL 29%

ONLY FAMILY LABOR 21%

LOCAL LABOUR 26% NEPALI LABOUR 24%

Exhibit 4.10 showing percentage of different types of labour utilisation

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4.4 PRESENT STATUS OF CREDIT DISBURSEMENT IN STUDY AREAS Credit availability is one of the important issues for spices and vegetable growers. The main source of institutional credit available in the study areas were SBI and Cooperative Mini Bank branches. There were no microfinance institutions in those areas other than the bank branches. State Bank of India The rate of interest for agricultural loan in SBI is seven percent. The documentations needed for getting loans are: i. No due certificate from BDO, chairman of cooperative society, the gram pradhan and the patwari. ii. A copy of kisaan bahi issued from the tehsil consists of information regarding land holding of the applicant in different places of the cluster. Ownership of land of the farmer is taken in to account in order to disburse the credit. Loans are also provided to SHGs along with the subsidies provided by the block office through block office. The ownership of land for each member of the SHG is checked in order to issue the credit. Cooperative Mini Bank, Fakot The bank provides general banking facilities as well as crop loan and inputs like fertilizer, pesticides, seeds etc. to the member farmers. Members should have land in the mentioned areas and should be above 18 years age. The source of fund for the institute is DCB/ NABARD. Documentation needed to get a loan from this bank includesi. ii. iii. A pro note to the bank Guarantor Should have share of the bank. Loan amount issued use to be nearly 20 times of the share value. iv. A copy of kisaan bohi issued from the tehsil consists of information regarding land holding of the applicant in different places of the cluster. Ownership of land of the farmer is taken in to account in order to disburse the credit.

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The limit to the amount of credit for crop loan is decided by the office of district agriculture officer or district horticulture officer for particular amount of land and crop as per the scale of finance for the crop, which the farmer intends to grow. The loan is given in the form of cash and kind as some of the inputs are provided in place of cash by the bank and sometimes seeds are provided by district horticulture office and the bank pay them the money. The interest rate is 10%. Out of that three percent is pay backed by NABARD and two percent is pay backed by Uttarakhand government as subsidies. Only five percent of the interest is to be backed by the farmer. Agrakhal In Agrakhal almost all the people are aware about credit facilities available. But many of them were having different types of misconceptions regarding interest rates, formalities, documentations etc. There were two bank branches, State Bank of India, Fakot and Cooperative Mini Bank, Fakot which are the main source of institutional credit source in the area. Only about thirty percent of the farmers were taken credit from these institutes. Nearly ten percent of the farmers took credit from SBI branch. The main reasons due to which farmers are not availing credits are mentioned below1. High rate of interest. 2. Too much of formalities and documentation to be done to get those facilities. 3. High amount of cost of credit. It is due to the commission to be paid to the bankers which is about fifteen to twenty percent of the credit amount. 4. Misbehaviour of bankers, especially in SBI, Fakot. 5. Risks of crop failure due water scarcity, wild animal attack, frost, sleet, pest and diseases etc. 6. Risk of transportation, storage, price fluctuation etc. Maletha In Maletha about fifty percent of the people are aware about credit facilities available. Others were unaware of the formalities as well as facilities provided. Many farmers were having different types of misconceptions regarding interest rates, formalities, documentations etc. There were three bank branches, State Bank of India, Kirtinagar, Cooperative Mini Bank, Kirtinagar and Tehri Garhwal Sharkari Bank, Kirtinagar which are the main source of institutional credit source in the area. Only about twenty percent of the farmers were taken
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credit from these institutes. The main reasons due to which farmers are not taking credits are mentioned below1. Unawareness about credit facilities. 2. High rate of interest. 3. Too much of formalities and documentation to be done to get those facilities. 4. High amount of cost of credit. It is due to the commission to be paid to the bankers which is about fifteen to twenty percent of the credit amount. 5. Misbehaviour of bankers. 6. Risks of crop failure due water scarcity, wild animal attack, frost, sleet, pest and diseases etc. 7. Risk of transportation, storage, price fluctuation etc.

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4.5 ONGOING PROJECTS IN THE STUDIED AREAS Ongoing government schemes in Agrakhal are: Integrated Watershed Development Project, Bhinukhal micro watershed This is a project going on in Agrakhal under NABARD. The associated NGO working in this area is Society for Rural Technology. Different works under this project have been done which includes construction of check dams, construction of percolation tanks, construction of stone wall etc for soil conservation. Forestation, fodder plantations were also done under the project for soil conservation. The NGO also distributed different tree seedlings to the farmers and also intervened new crop i.e. pea, variety- arkil in the area under the project. The project in turn helped the spices and vegetable farmers of the cluster by providing improved infrastructure as well as input like pea seeds and information. National Rural Employment Guarantee Scheme- this is a scheme under Indian government in which rural people are given minimum employment of 100 days. In Agrakhal under this schemes construction of stone walls and percolation tanks are going on. Because of this project there was reduction in disguised labour in the cluster. Swajjal- It is a scheme under collaboration Indian government and World Bank which is for providing drinking water facility to the villagers. Under this scheme hand pumps were installed in agrakhal. The project added to the infrastructure of the cluster and also indirectly provided better living conditions to the farmers. Ongoing government schemes in Maletha are: Rural Technology Training and Demonstration Centre- it is a centre for demonstration of new technologies, practices etc to the villagers and farmers under G.B. Pant Institute of Himalayan Environment and Development. Where poly houses, WHTs were constructed and demonstrated as well as procedure of different agricultural practices was shown to the farmers of the cluster. It helped in the information and knowledge transfer. But the centre is not functioning well because of lack of maintenance in that area. National Rural Employment Guarantee Scheme- this is a scheme under Indian government in which rural people are given minimum employment of 100 days. In Maletha under this schemes construction of stone walls, rain water harvesting tanks were done as well as forestation was done. Because of this project there was reduction in disguised labour in the cluster.

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Collection and distribution centre- it was established for agricultural produce in Maletha, but it is not functioning till now. IFFCO selected some villages of the cluster and did 3 years demonstration programs related to cultivation of different agricultural crops including vegetable crops. The institute also provided improved inputs to the farmers of the cluster.

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4.6 STATUS OF POST HARVEST MANAGEMENT

Picking and assembling Picking or harvesting is the process of removing the vegetable from the main plant or from soil. In both the clusters it was done manually. Assembling of the product at one place is one of the important post harvest practice performed by the spices and vegetable growers in the study area. The mode of assembling in both the cluster was manual and place of assembling was the field itself or the home places of farmers. Cleaning Assembling was followed by the cleaning operation. Generally, producers performed cleaning operation only in ginger and turmeric in Agrakhal. The products are washed and then dried under the sun. It was done in the field itself or in the households. In Maletha tomato and capsicum were cleaned in the field itself by the farmers. They wash the produce in the water channels present in the field for irrigation. In both the clusters farmers used to remove the outer leaves to make these vegetables attractive and to give fresh look. Grading and sorting

Grading is one of the most important post harvest practice from the market point of view as it helps to fetch higher prices of produce. However, grading operation, as such, was not common in almost all vegetable commodities in the study area except for few farmers. Instead of grading sorting is carried out by the producer. Sorting is done mostly in the field itself or in the households. Table 4.10 displays major characters considered for grading/sorting of spices and vegetables. Table 4.15 sorting of spices and vegetables in the studied clusters CROP Carrot Okra Coriander Rai MEANS OF SORTING Manual Manual Manual Manual CHARACTER CONSIDERED Insect and pest infection Insect and pest infection Colour, dryness Colour, dryness

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Palak Garlic Pea Radish French bean

Manual Manual Manual Manual Manual

Colour, dryness Insect and pest infection Insect and pest infection Insect and pest infection Insect and pest infection Compactness of head, insect/disease

Cabbage

Manual

infection Curd color, compactness, mould

Cauliflower Onion Cucumber Pumpkin Tomato Brinjal Potato Chilli Colocasia Capsicum Ginger Turmeric Bottle gourd

Manual Manual Manual Manual Manual Manual Manual Not done Manual Manual Manual Manual Manual

growth, insect /disease infection Insect and pest infection Insect and pest infection Insect and pest infection Insect and pest infection, colour Insect and pest infection Insect and pest infection

Insect and pest infection Insect and pest infection, colour Fungal growth Insect and pest infection Insect and pest infection

Packaging Packaging is one of the important and necessary functions performed in the marketing process. This is done just after sorting. Packaging was done manually for all spices and vegetables. Generally plastic crates and gunny bags were used as packaging material for most of the spices and vegetables. Plastic crates were reusable and durability of these was 2-3 years. The cost of plastic crates varied from Rs.130 to Rs.150 per unit. The cost of gunny bag varied according to their capacity and average costs came out to be Rs.7 to 10 per KG. Table 4.11 shows the packaging material used for different vegetables of both the clusters along with their capacity, cost, and extent of reuse.

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Table 4.16 packaging of spices and vegetables in the studied clusters CROP MATERIAL GUNNY BAG, CARROT OKRA CORIANDER RAI PALAK GARLIC PEA PLASTIC CRATE GUNNY BAG GUNNY BAG GUNNY BAG GUNNY BAG GUNNY BAG GUNNY BAG GUNNY BAG, RADISH FRENCH BEAN CABBAGE PLASTIC CRATE GUNNY BAG GUNNY BAG GUNNY BAG, CAULIFLOWER ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI PLASTIC CRATE GUNNY BAG GUNNY BAG GUNNY BAG PLASTIC CRATE PLASTIC CRATE GUNNY BAG PLASTIC CRATE, COST Rs.7-10/ KG. 130-150/ UNIT Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. 130-150/ UNIT Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. 130-150/ UNIT Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG. 130-150/ UNIT 130-150/ UNIT Rs.7-10/ KG. 130-150/ UNIT EXTENT OF USE ONE TIME 2-3 TEAR ONE TIME ONE TIME ONE TIME ONE TIME ONE TIME ONE TIME ONE TIME 2-3 TEAR ONE TIME ONE TIME ONE TIME 2-3 TEAR ONE TIME ONE TIME ONE TIME 2-3 TEAR 2-3 TEAR ONE TIME 2-3 TEAR
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GUNNY BAG COLOCASIA CAPSICUM BOTTLE GUARD GINGER TURMERIC GUNNY BAG PLASTIC CRATE GUNNY BAG GUNNY BAG GUNNY BAG

Rs.7-10/ KG. Rs.7-10/ KG. 130-150/ UNIT Rs.7-10/ KG. Rs.7-10/ KG. Rs.7-10/ KG.

ONE TIME ONE TIME 2-3 TEAR ONE TIME ONE TIME ONE TIME

Transportation Quick and efficient transportation is the main step towards good marketing systems. Vegetables being highly perishable in nature require quick disposal to avoid spoilage and loss in quality which need efficient network of transportation. Generally, all producers transported their produce from field to home place manually. However, they used different means of transportation to carry their produce up to the market for sale. The producers who sold their produce directly to the retailers shop carried their produce on head loads adopted mostly by small farmers. Generally, producers selling their produce directly to the consumers by door to door sale method used this mode of transportation. The means of transportation adopted by producers for marketing in study area have been discussed below. Transportation in Agrakhal In this cluster due to uneven topographic condition transportation is a major problem. Most of the farmers have to carry the produce manually or with the help of mule. Horticulture department provided one rope way system from Kasmoli to the main road but most of the farmers do not use it because the end point of the ropeway is far from Agrakhal mandi as well as local markets and if they will use the system also they have to carry the produce manually to the markets. Only those farmers who produce large amount of spices and vegetables can hire a truck or jeep from the end point of the ropeway.

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Table 4.17 Means of transportation for different vegetable commodities in Agrakhal Mode of transportation Manual No. of farmers 30 destination Main road, Agrakhalmandi, local market Mule 19 Main road, Agrakhalmandi, local market Jeep 9 Agrakhalmandi, local market, Rishikesh, Haridwar, Dehradun Bus 9 Agrakhalmandi, local market, Rishikesh, Haridwar, Dehradun Truck 7 Rishikesh, Haridwar, Dehradun

MODE OF TRANSPORTATION
35 30 25 20 15 10 5 0 Manual mule Jeep No. of farmers bus Truck

Exhibit 4.11 mode of transportation in Agrakhal

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Transportation in Maletha In this cluster transportation is not a problem. Jeeps, buses and trucks are easily available to carry the produce. To carry vegetables in a large quantity to Rishikesh mandi trucks charges Rs. 10- 15 per unit of crate or gunny bag. To cell to the local markets and village retailers farmers uses mostly jeeps and trackers as well as line buses. Producers selling their produce directly to the consumers by door to door sale method use bicycles. Table 4.18 Means of transportation for different vegetable commodities in Maletha Mode of transportation Manual Bicycle No. of farmers destination 30 Main road, home 14 Local markets, home to home delivery, local retailers Jeep/ trackers 27 Local market, Srinagar, Rishikesh, Haridwar, Dehradun Bus 19 Local market, Srinagar, Rishikesh, Haridwar, Dehradun Truck 12 Rishikesh, Haridwar, Dehradun

MODE OF TRANSPORTATION
35 30 25 20 15 10 5 0 Manual bicycle Jeep/ trackers bus Truck No. of farmers

Exhibit 4.12 mode of transportation in Maletha


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Storage Scientific storage was not available in any of the cluster. No storage practice was adopted by the growers. All farmers sold their produce just after harvesting. In case of sale to mandi, the produce was harvested previous day evening or in the same day early morning. In case of selling to retailers shop or to local markets, they harvested their produce in the same day. Few of the farmers in both the clusters used Amber and 2000-64 variety of tomato, which were having longer shelf life. They stored such tomatoes in their home place after harvesting for up to 15 days in normal condition. Processing There were no processing units present in any of the cluster. Farmers are unaware of the benefits from processing. No processing is done for any commodity in any of the cluster.

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4.7 MARKETING ISSUES AND PROBLEMS Marketing is one of the most important part of the whole supply chain. Efficient marketing can help in increasing supply chain efficiency and profitability as a whole. The marketing issues and problems observed in the studied areas are mentioned below. Agrakhal In Agrakhal local markets are Fakot and Agrakhal. There is a mandi i.e. Agrakhal mandi run by Agrakhal mandi parishad. Forty percent of the farmers sell their produces in that mandi. But the capacity of the mandi is less due to which it cannot accommodate the produce of large farmers. This is the reason for which large farmers need to go for larger mandis of Rishikesh, Haridwar, Dehradun etc. It increases transportation cost as well as decreases profit. About 30 % of the farmers sell their produces in larger mandis like Rishikesh, Haridwar, Dehradun etc. Other farmers sell their produce in the local markets and villages. Now-a-days Participation of farmers club and SHGs initiated collective negotiation process and it increases the bargaining power of the farmers. Contract farming is not present in the cluster; only local mandi sometimes participated in such practices in very small scale. Proportion of produce sold in different markets in Agrakhal is shown below with the help of exhibit 4.13

LOCAL VILLAGES/ MARKETS RISHIKESH/DEHRADUN MANDI

AGRAKHAL MANDI

30%

30%

40%

Exhibit 4.13 Proportion of produce sold in different markets in Agrakhal

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Maletha In Maletha local markets are Srinagar and Kirtinagar. The main problem of marketing in this cluster is absence of any nearby mandi. About fifty five percent of the farmers sell their products in Srinagar market directly to the retailers. About fifteen to twenty percent of the farmers sell their product in the Kirtinagar market or local villages and other thirty percent of the farmers sell their product in the far mandis of Rishikesh, Haridwar or Dehradun. The shopkeepers of local markets were the major buyers of different vegetable commodities and because of that those retailers were having high bargaining power it in turn reduces the bargaining power of the farmers and compelled them to sell their produce at lower prices. In this cluster participation of NGO or SHGs in the marketing process is negligible and so collective negotiation is totally absent. Small quantity of produce per farmer is another reason for low bargaining power of the farmers. There is a newly opened collection cum distribution centre for agricultural commodities in Maletha. But it is still not working and also people of the cluster were having lower expectations from the centre because of its smaller size as well as distance from different villages. Contract farming was absent in the cluster. Proportions of produce sold in different markets in Maletha are shown below in exhibit no 4.14.
LOCAL VILLAGES/ MARKETS RISHIKESH/DEHRADUN MANDI 27% 16% SRINAGAR MARKET

57%

Exhibit 4.14 Proportion of produce sold in different markets in Maletha

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Common channels of marketing in the studied clusters There were three common channels of marketing in both the clusters i.e. Agrakhal and Maletha. Those were from producers to the mandi, from producers to retailers and from producers to consumers. In Agrakhal farmers sold their produce both in Agrakhal mandi as well as far mandis like Rishikesh ,Haridwar and Dehradun mandi. In Maletha due to absence of any nearby mandi produce were sold to far mandis like Rishikesh ,Haridwar and Dehradun mandi. Farmers in Agrakhal also sold their produce to the local retailers. This type of channel was common in Maletha because due to absence of mandi nearby most of the farmers liked to sell their produce to the retailers of Kirtinagar and Srinagar. They also sold their produce to the local retailers of their villages. In both the clusters many of the farmers sold their produce in the villages, directly to the consumers. This channel is very much efficient for producers as well as consumers because it results in producers receiving good prices for their produce as well as consumers paying lower prices. But this channel was having lower capacity to accommodate huge amount of vegetables and spices produced by the farmers of the clusters.

production asembling/cleaning sorting/grading transport

mandi
auction

transport store sell

consumer
consumes

producer

retailer

Exhibit 4.15 Common channels of marketing in the studied clusters

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4.8 RISK AND MITIGATION MEASURES Risk is associated with every step from production to marketing of vegetables and spices. Crop failure results in huge losses of farmers. In both the study areas people were suffered from different problems which leads to partial or complete crop failure as well as receiving fewer prices for their produce. In those areas people should go for crop insurances as risk mitigation measure but farmers of Agrakhal as well as Maletha were not aware of the same. In those areas facilities for crop insurances were also not available AGRAKHAL i. Production risk-it includes weather risk, risk due to wild animals, pest and diseases etc. there were huge losses in production due to these problems. Weather risk includes availability of rain at cropping season, amount of direct sunlight, frost; sleet etc. water scarcity is a major problem in the cluster and lack of rainfall may even leads to crop failure. Wild animals are also a major problem in the cluster. Feeding on the vegetables and destroying the fields by wild animals were common in the area. Wild animals even attacks villagers and because of that many of the farmers even quit growing crops in some of their fields. Direct sunlight for long period in Kasmoli is also a problem for the vegetable growers. Sleet and frost are common natural problem leads to reduction in production. ii. Marketing risk- it includes risk associated with storage, transportation and poor information system as well as price fluctuation of commodities. Due to lack of storage facilities in the cluster farmers cannot store the harvested produce for long which in turn compelled them to sell their product at whatever price they get. Many a times there were huge losses due to this. Transportation is another problem in marketing due to hilly topographic condition. Lack of proper information system leads farmer to sell their product in the mandi at ongoing price irrespective of their wish. iii. Credit risk- people are unaware of the procedures and facilities of institutional credit. So they go for private money lenders for credit which compels them to pay high rate of interest. Mitigation measures are followed by only by few farmers and those are mainly related to the production risk. Mitigation measures include construction of water harvesting tanks, roof water harvesting tanks etc against problem of water scarcity. Few of the farmers used net to save crops and seedling from sleet. Against the storage problem few
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farmers grow variety with long shelf-life like for tomato. For example some of the varieties are amber, 64-2000 etc. MALETHA i. Production risk-it includes weather risk, risk due to wild animals, pest and diseases etc. there were huge losses in production due to these problems. Weather risk includes availability of rain at cropping season, sleet etc. water scarcity is a major problem in the cluster and lack of rainfall may even leads to crop failure. Wild animals are also a major problem in the cluster. Feeding on the vegetables and destroying the fields by wild animals were common in the area. Another problem is thief. In nights some thiefs used to take away vegetables from the field. ii. Procurement risk- one of the major problems in the cluster is unavailability of seeds at required time for sowing. Seeds are provided by the horticulture mobile team, Kirtinagar. According to the farmers of the cluster the seeds provided are not reliable as well as seeds were not provided timely. iii. Marketing risk- it includes risk associated with storage and poor information system as well as price fluctuation of commodities. Due to lack of storage facilities in the cluster farmers cannot store the harvested produce for long which in turn compelled them to sell their product at whatever price they get. Many a times there were huge losses due to this. Lack of nearby mandi is one of the major problems related to marketing which leads farmer to sale their product to retailers of Srinagar and Kirtinagar market in fewer prices. It also results in high

transportation cost and need more labor. Distribution to different retailers is a time consuming process. It eventually resulted in producers receiving a very low price for their produce while at the other end the consumers are compelled to pay a highly inflated price for their purchases. Lack of proper information system leads farmer to sell their product in the mandi at ongoing price irrespective of their wish. iv. Credit risk- people are unaware of the procedures and facilities of institutional credit. So they go for private money lenders for credit which compels them to pay high rate of interest. Other than this there was another major problem related to credit. It was unavailability of credit facilities to the farmers who do not have own lands but cultivating vegetables in a large scale in leased land. All the leasing seen was verbal.
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Mitigation measures are followed by only by few farmers and those are mainly related to the production risk. Mitigation measures include appointment of a person to guard the fields against wild animals locally known as bandrool, construction of water harvesting tanks. Most of the farmers of Jiyalgarh and few farmers of Maletha purchases seeds from Srinagar market in black to reduce the risk of seed procurement. Against the storage problem few farmers grow variety with long shelf-life like for tomato. For example some of the varieties are amber, 64-2000 etc.

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4.9 EXISTING INFRA-STRUCTURAL FACILITIES FOR THE MARKETING OF SPICES AND VEGETABLES IN AGRAKHAL AND MALETHA The infrastructural facilities available in Agrakhal and Maletha are displayed in Table 4.7. In Agrakhal there was adequate availability of electricity. There are problem related to driking water problem in the cluster. Four out of six villages are suffered from drinking water as well as general water problem. Roads are another problem because of hilly topography. Except the main road all other connecting roads are hilly and kacha. There were only a few water channels present in fields for irrigation and most of them were not functioning. Mandi is present in the cluster under Agrakhal mandi parishad, however daily price information was not displayed in the Mandi. The advanced mechanism for electronic auctioning board and internet facilities were not available to farmers. The capacity of the market is also less and large farmers need to go for far mandis, which in turn increases farmers transportation cost. In Maletha there was adequate availability of electricity and drinking water facility. Roads of the cluster are pukka and well maintained. There were well maintained water channels present in fields for irrigation. The main problem of this cluster is absence of any mandi in nearby areas. Although one collection cum distribution centre for agricultural products is opened till now it is not functional. The information system in both the cluster is also very poor. Phone and personal query are only source of information for farmers. Information about prices of commodities in mandi, new technologies, information about government schemes and information of general agricultural practices including pest and diseases management are not easily available. Table 4.19 Infrastructure facilities available in study areas Sr. No. 1 Adequate drinking and other water supply 2 3 Electricity available Roads Yes Hilly and kacca Yes Pukka and well No Yes Particulars Agrakhal Maletha

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maintained 4 5 6 Mandi Internet for farmers Water channels in field Yes No Yes No No Very few and mostly not functioning. 7 Electronic auctioning board in the mandi No -----No No

Information centre

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4.10 PRICING AND PROFIT MARGIN SCENARIO The pricing of different spices and vegetables produced in Agrakhal cluster at different stakeholders levels are given belowTable 4.20 pricing of spices and vegetables in different level of stakeholders FARM GET PRICE CROP GINGER TURMERIC GARLIC PEA RADISH FRENCH BEAN CABBAGE (Rs/Kg) 30-40 10 TO 15 15-20 20-25 6 TO 8 10 TO 15 7 TO 10 WHOLESALE PRICE (Rs/Kg) 40-50 15-20 25-30 35-30 10 TO 15 20-25 15-20 25-30 10 TO 12 6 TO 7 8 TO 10 15-18 10 TO 12 8 TO 10 30- 40 15-20 35-40 30-40 15-20 35-40 20-25 30-40 12 TO 15 10 TO 12 10 TO 12 18 -20 12 TO 15 10 TO 15 40-50 20-25 RETAIL PRICE (Rs/Kg) 50-60

CAULIFLOWER 10 TO 15 ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI COLOCASIA BOTTLE GOURD 5 TO 8 7 TO 10 5 TO 6 3 TO 5 8 TO 10 5 TO 8 5 TO 8 25-30 10 TO 15

10 TO 12

12 TO 15

In mandis there used to be some commission agents or arhatiyas, they work as the middle man between the farmers and the retailers. They charges six percent of farmers sale price and eight percent of retailers purchase price in Rishikesh, Haridwar and Dehradun mandi Whereas in Agrakhal mandi arhatia charges five percent of farmers sale price and six percent of retailers purchase price.In Agrakhal producers margin used to be the amount paid by the consumer after subtracting the retailers and wholesalers margin, cost of production and transportation cost fromtheir field to the mandi. The wholesalers margin used to be the price
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received from consumers after subtracting retailers margin, cost of storage and purchasing cost of the produce and retailers margin used to be the amount paid by the consumer after subtracting the transportation cost from mandi to their shops, storage cost, wholesale price of the produce and the wastage during transportation and storage. The pricing of different spices and vegetables produced in Maletha cluster at different stakeholders levels are given belowTable 4.21 pricing of spices and vegetables in different level of stakeholders WHOLE SALE CROP CARROT OKRA CORIANDER RAI PALAK GARLIC PEA RADISH FRENCH BEAN CABBAGE FARM GET PRICE 10 TO 15 8 TO 10 25-30 8 TO 10 8 TO 10 15-20 20-25 6 TO 8 10 TO 15 7 TO 10 PRICE 15-20 10 TO 15 30-35 10 TO 15 10 TO 15 25-30 35-30 10 TO 15 20-25 15-20 25-30 10 TO 12 6 TO 7 8 TO 10 15-18 10 TO 12 8 TO 10 30- 40 15-20 12 TO 15 RETAIL PRICE 20-25 15-20 40-45 15- 20 15-20 40-45 30-40 20-25 35-40 20-25 30-40 15-20 10 TO 15 10 TO 15 18 -20 12 TO 15 10 TO 15 40-50 20-25 20-25

CAULIFLOWER 10 TO 15 ONION CUCUMBER PUMPKIN TOMATO BRINJAL POTATO CHILLI COLOCASIA CAPSICUM 7 TO 10 5 TO 6 3 TO 5 8 TO 10 5 TO 8 5 TO 8 25-30 10 TO 15 8 TO 10

In mandis there used to be some commission agents or arhatiyas, they work as the middle man between the farmers and the retailers. They charges six percent of farmers sale price and
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eight percent of retailers purchase price in Rishikesh, Haridwar and Dehradun mandi.In Maletha producers margin used to be the amount paid by the consumer after subtracting the retailers and wholesalers margin, cost of production and transportation cost fromtheir field to the mandi. The wholesalers margin used to be the price received from consumers after subtracting retailers margin, cost of storage and purchasing cost of the produce and retailers margin used to be the amount paid by the consumer after subtracting the transportation cost from mandi to their shops, storage cost, wholesale price of the produce and the wastage during transportation and storage.

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5. RECOMENDATION
5.1 Establishment of information cum input distribution centre- an information centre should be established near each cluster with internet facility which will help the farmers to get information regarding the followings. Benefits and profit if spices and vegetable cultivation Production practices Insects and pest attacks management Diseases management Credit facilities Input utilization Prices and fluctuation Possible crops and their production practices Information & benefits of useful practices like chakbandi

Other then information the centre should also provide required quality inputs including seeds, fertilizer and plat protection materials in return of money. It will reduce procurement risks of the farmers in those clusters. Training of farmers by officials of NABARD as well as Agriculture departments should be arranged in the centre periodically. For the purpose of opening such centers need large amount of investment which is for both infrastructures as well as for providing salary to the appointed in charge. The centre can be established with collaboration with respective cooperative banks of the clusters. 5.2 Establishment of processing industries should be supported and subsidized near the clusters which will decrease cost of marketing and transportation of the farmers and also reduces wastage of spices and vegetables. Application should be invited through news papers for loans to establish processing unit. Training about processing of vegetables and spices should be provided to persons selected for loan as well as any interested candidates who apply for loan to establish any type of spices and vegetable processing unit. 5.3 Collection cum distribution cell for spices and vegetable produce should be opened in both the clusters under NABARD, it will help the farmers to sell their products to a reliable
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buyer and it will also reduce exploitation of farmers. SHGs of local areas can be given the task. But the centre should be specifically for spices and vegetables. There should be improved storage system in the centre as well as vehicles to supply the produces to different Mandis. 5.4 Establishment of community cold storage is very much important for the farmers of studied clusters. As most of the farmers were poor farmers it is not possible for them to contribute such huge money for cold storage. But if cold storages can be made then farmers can be charged for storing there produce. 5.5 Water scarcity is one of the major problems in both the cluster studied. In spite of suitable climatic conditions and hard work of farmers vegetable cultivation is becoming gambling for the farmers. To mitigate the risk of water scarcity farmers can go for construction of rain water harvesting tanks and roof water harvesting tanks. Some of the medium or large farmers were already having such tanks in both the clusters. But the poor farmers consisting most of the population were not able to afford such tanks. Therefore subsidies as well as credits should be provided for constructing rain water harvesting tanks and roof water harvesting tanks. 5.6 In Agrakhal water problem can be minimized by installing a water motor and pipeline from Basuakhal area where there is a natural source of water is present. Water from that source is not used by any of the villages due to the distance and height of the source. It is in the upper side of the cluster and water can be provided to Kasmoli village which is mostly suffering from water scarcity problem. The source is about half km from Kasmoli. 5.7 Agrakhal is a suitable place for growing exotic and off season vegetables. But farmers in those villages were still growing traditionally grown crops and they were unaware of the profits of growing exotic vegetables. Nearly zero degree temperature in winter and mild temperature in summer season turn to be some of important assets of the cluster. Therefore information, training and inputs mainly seeds of exotic vegetables should be provided to the farmers of that area. 5.8 Absence of any nearby mandi in Maletha cluster is a major problem for the farmers. In the cluster there was no cold storage unit or other improved storage system, therefore farmers need to sell their products just after harvesting. So absence of mandi in such case compelled the farmers to sale their products to retailers in Srinagar market. In Srinagar market farmers receive lower prices because of different facts mentioned below.
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Lower bargaining power of farmers Lower capacity of the market Higher number of farmers large quantity of produce

Therefore establishment of one mandi in Srinagar is recommended. 5.9 In Maletha cluster water scarcity is a major problem, mainly when there is no rainfall. Such water scarcity problem can be minimized by installing water machine and pipeline from river Alakananda. The agricultural fields in this cluster are situated in the side of the river. But the heights of the fields were very high. It ranges from 20 to 40 feet. There for water machine should be installed and pipeline should be fitted connected to the irrigation channels present in the fields.

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6. PROPOSED STRATEGY FOR SUPPLY CHAIN MANAGEMENT OF SPICES AND VEGETABLES IN UTTARAKHAND
On the basis of the findings from the present study an improved strategy for better supply chain management of spices and vegetables in Uttarakhand has been proposed, which can be implemented in the future for the improvement of the present scenario as well as for the upliftment of spices and vegetable growers. The strategy is presented below 1. Identification and study of all the clusters where spices and vegetables are grown in Uttarakhand. It is very much important to know about the areas where vegetables and spices are grown commercially as well as to identify the problems associated with the supply chain of vegetables and spices in those areas of Uttarakhand.

2. Divisions of all the clusters with respect to their locations in two categories i.e. plains and hills. As the state of Uttarakhand is consist of hills and plains with different climatic conditions as well as different cultures, different levels of infrastructural growth and different natural drivers and obstacles it is very much important to divide the clusters accordingly.

3. Studying the clusters with respect to the production practices, information system as well as inputs availability. The clusters should be studied accordingly and selection of those clusters should be done where wrong practices of productions are followed because of lack of knowhow, unavailability of inputs like seeds, fertilizer, plant protection material, packaging material etc and in those clusters information cum input distribution centre should be established. Facility of internet for knowing mandi prices and other latest facilities should be provided in the centers.

4. Studying the clusters with respect to the availability of credit facilities and risk mitigation measures like facility of crop insurance. It will give a clear picture of the present status of credit disbursement and financial assistance needed by the spices and vegetable growers of Uttarakhand. On the basis of the study information on credit, facility of credit and facility of crop insurance should be provided to the needed clusters. Farmers can be made aware of credit and insurance with the help of the information centre.

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5. SHGs and kisan clubs should be provided credits and training for collective production and marketing of spices and vegetables in the clusters.

6. Processing units are not available near to most of the S&V producing clusters in Uttarakhand. So establishment of processing industries should be supported and subsidized near the clusters which will decrease cost of marketing and transportation of the farmers and also reduces wastage of spices and vegetables. Application should be invited through news papers for loans to establish processing unit. Training about processing of vegetables and spices should be provided to persons selected for loan as well as any interested candidates who apply for loan to establish any type of spices and vegetable processing unit.

7. In hilly clusters installation of trolleys or ropeways can be supported and financed by NABARD in Uttarakhand. This is also done by the state Horticulture department. So this can be done with a greater efficiency if collaboration of both the organisation will go for it.

8. In Uttarakhand mainly in the hilly clusters water scarcity is a major problem not only for irrigation also for other domestic purposes. So in spite of suitable climatic conditions and hard work of farmers vegetable cultivation is becoming gambling for the farmers. To mitigate the risk of water scarcity farmers can go for construction of rain water harvesting tanks and roof water harvesting tanks. Some of the medium or large farmers were already having such tanks in both the clusters. But the poor farmers consisting most of the population were not able to afford such tanks. Therefore subsidies as well as credits should be provided for constructing rain water harvesting tanks and roof water harvesting tanks. There should be such schemes under cooperative banks or the other banks present in the clusters. In plains the cost for constructing a water harvesting tank of capacity 3000 L will be Rs.11665 including cost of construction material and labor charges. For hills it will be about Rs.14000 because of the material carrying charges from main roads to the villages or fields. 9. Storage facilities for spices and vegetables in Uttarakhand as well as in India are not sufficient. Community cold storages should be financed and established in all the clusters which will reduce the post harvest losses of S&V up to a great extent. A
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standby Genset will also be be required to keep the cold store operational in case of power failure. Since it is essential that there is no break in the cold chain from harvest to final sale, a refrigerated van also should be provided in all the clusters.

10. Marketing is one of the most important as well as unavoidable step and problem for the farmers of spices and vegetables in Uttarakhand. Absence of mandis near the clusters as well as lack of improved transportation system is a major challenge for the improvement of the supply chain. To face this problem the following can be done Creation of mandi parishads in the clusters under NABARD and selection of literate, progressive farmers from the clusters as member of the parishad. With the help of the parishad mandi can be opened near the clusters where mandis are absent.

Collection cum distribution cell for spices and vegetable produce should be opened in the clusters under NABARD, it will help the farmers to sell their products to a reliable buyer and it will also reduce exploitation of farmers. SHGs of local areas can be given the task of its management. But the centre should be specifically for spices and vegetables. There should be improved storage system in the centre as well as vehicles to supply the produces to different Mandis.

11. In the plain clusters loans and information for using tractors and power tillers should be provided. It will reduce the time consumption in field preparation and will help in sowing at right time. It will also help in cases of natural problems like delay of monsoon.

12. It was found that farmers generally grow conventional vegetables without any consideration of the trends in the market prices. Exotic vegetable in off-season fetched higher prices. Therefore, the farmers should change their conventional cropping pattern by putting more area under profitable crops like exotic vegetables. In the cold hilly clusters of Uttarakhand farmers should be motivated and inputs and training should be provided for growing exotic vegetables such as broccoli, lettuce, and Chinese cabbage etc.

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13. The farmers should be encouraged to form their own marketing co-operative societies in order to reap the benefit of scale economies (low cost of handling, transportation, packaging and storage) and better bargaining and collective strength.

14. Institute like NABARD should participate in practices like of contract farming in collaboration with some private companies and should encourage such practices, it will help to bring new trends to the clusters and farmers will be very much profited.

15. Organic farming of these spices and vegetables should be promoted in the state to improve quality for export purpose. Farmers should tie-up with hotels within and outside the state for providing continuous supply of vegetables and mainly exotic vegetables to them and thereby reaping best price throughout the year.

16. The malpractices like arbitrary auction, double charging of commission and arbitrary deduction of moisture etc., should be checked. The recording of sale proceeds on prescribed forms should be strictly enforced so that the producers get a transparent and fair deal.

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Institutional lender, banks

Infrastructural development

Seed companies

Fertilizer companies

Plant protection materials companies

Labors

Information cum distribution centre Producer

Horticulture department

Community storage/ cold storage

Collection centre

Processing Plant

Mandi

Export

Different processed Products like Ketchup, Puree, and Paste

Retailers

Consumers

Exhibit 6.1 Proposed Strategy for Supply Chain Management of Spices and Vegetables in Uttarakhand

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