Markets as incentives for sustainable models of on farm diversity in - - PowerPoint PPT Presentation

Markets as incentives for sustainable models

• f on farm diversity in production systems –

Lessons from sub-tropical fruits from India

CROP WISE AREA UNDER MAJOR FRUITS IN INDIA

APPLE 8% BANANA 16% CITRUS 18% MANGO 50% LITCHI 2% GUAVA 5% GRAPES 1%

PRODUCTION SHARE OF MAJOR FRUITS IN INDIA

A PPLE 2 % B A N A N A 3 7% C ITR U S 10 % LITC HI 1% M A N GO 2 3 % OTHER S 2 0 % GR A PES 3 % GU A V A 4 %

TFT Diversity status TFT Diversity status

Status of area and production of important fruits in India

Crop Area (‘000 ha) Production (‘000 t) Productivity (t / ha) Highest productivity in India (t /ha) Apple 193 1348 7.0 10.1 ( J & K) Banana 475 13304 28.0 62.9 (Mah) Citrus 563 5677 10.1 22.7 (Kar) Grape 52 1248 24.0 28.1 (Mah) Guava 155 1793 11.6 20.0 (Chat) Litchi 54 476 8.8 1.6 (Bih) Mango 1623 12733 7.8 16.3 (U.P.) Papaya 68 2147 31.6 82.0 (T.N.) Pineapple 80 1172 14.7 40.4 (Kar) Pomegranate 107 743 9.5 10.5 (Kar) Sapota 84 913 10.8 25.0 (T.N.)

Status of diversity of TFT in India Status of diversity of TFT in India

Fruit name Intra specific / Inter generic diversity

• No. of cultivars

In active commercial cultivation Remarks Mango Intra specific 30 Largest producer with well developed markets for conservation through utilisation Citrus Inter specific 25 Grape Inter specific 20 and above Banana Intra specific 9 Litchi Intra specific 33 Absence of efforts

Contributing factors for Contributing factors for agri agri-

• biodiversity

biodiversity maintenance maintenance

Production oriented

• Agro-climatic suitability–multi

layered cropping / specific crop

• Season of availability – mixed
• rchards, orchards with

intercrops

• Diversified utility – table types,

processing types

• Technological – tissue culture,

grafting etc.,

Market oriented

• Consumer preference –

varietal preference

• price advantage – premium

price

• Institutional support –

specialized/ exclusive market infrastructure

• Favorable policy –

incentives for exports, special emphasis

Diversity of TFT Diversity of TFT – – Intra specific; Intra specific; inter specific inter specific

Diversity of Mango in India Diversity of Mango in India

Distribution of Diversity of the Mango Distribution of Diversity of the Mango

Mango

Chittoor has 55 000 ha, with 427 000 t production, 70% is from totapuri, houses over 47 semi- processing units Alphanso from West (Ratnagiri from Maharashtra) and Totapuri from South (Chittoor in Andhra Pradesh) are main sources of mango pulp for export and domestic use.

Farmers maintain about ten varieties on farm. While totapuri accounts for 50 % of the farm area, others like neelam, beneshan and badami also hold significant farm area Totapuri is mainly processed Export of mango pulp recorded a growth

• f 2 % per annum.

Of the total Rs.2 970 million earned, 50 % is from totapuri Different varieties are grown for different purposes. Neelam being late fetches a premium price

Trend of mango pulp export quantity and value from india 10000 20000 30000 40000 50000 60000 70000 80000 90000 100000 1995- 96 1996- 97 1997- 98 1998- 99 1999- 00 2000- 01 2001- 02 2002- 03 years Q u a n t i t y ( M t ) 5000 10000 15000 20000 25000 30000 35000 V a l u e R s . l a k h s Quantity Value

Case Study : Mango Case Study : Mango

Mango Diversity on Farm Mango Diversity on Farm

Totapuri 50% Neelam

20%

Dasheri 5% Badami 10% Benishan

10%

Local 5% 0.00 1.00 2.00 3.00 4.00 5.00 6.00 1 2 3 4 5 6 Cluster landholding mango N u m b e r o f v a r ie tie s Total Per acre

Proportion of varieties/farm Distribution of diversity across farms

Mango market chain Mango market chain

Producer Pre-harvest contractor Wholesaler / commission agent Processor Exporter Consumer Retailer

fresh processed Product flow: Information & monetary flow:

Semi-processor

Source: own data

Number of players Pre Harvest Contractor is the most prominent player Wholesaler/ Commission agent dominant actor Information flow is weak across the chain

Alternate Marketing Channels Alternate Marketing Channels

Fresh sale all mango

• Producer (P) -Pre Harvest

Contractor (PHC)- Wholesaler/commission agent (WS/CA) – Retailer (R) – Consumer (C) : >60 %

• P – PHC – Co-operative market – R

– C : 15 %

• P – WS /CA- R- C : 15 %
• P – C : 5%
• P – Exporter – Foreign market : 1%

Sale for processing

• Producer (P) -Pre Harvest

Contractor (PHC)- Wholesaler/commission agent (WS/CA) – processor- Retailer (R)- Consumer (C) : >40 %

• P – Processor ( Semi-

processing) – Exporter – Foreign market : 40 %

• Semi-processing
• Small- scale, Canning units,

Three months in a year

• Custom processing, raw

material and packing material provided by the buyer, Rs. 2250/t for converting to pulp.

• Sell to big processors or

exporters

5 10 15 20 V a l u e ( R s / K g ) Processing sale Fresh sale

Costs and margins of mango fresh Vs processing sale

P/R margin P/R cost Ws margin WS cost PHCs margin PHCs cost Farmers margin Farmers cost

Processed (Totapuri) Fresh (Neelam) Farmer Net gain Costs 17.8% 14.8% 22.9% 7.4% PHC Margin Costs 15.2% 9.1% 10.8% 4.5% WS Margin Costs 8% 8% 14% 3.5% Pro/ret Margin Costs 4.9% 22% 21% 16%

Costs and Margins in Fresh Costs and Margins in Fresh Vs Processed sales Vs Processed sales

Contribution to Farm Income Contribution to Farm Income

20% 10% 9% 59% 2% 1% 60% 3% 3% 33% 5% 4% 5% 37% 49% 0% 10% 20% 30% 40% 50% 60% 70% Totapuri Neelam Malgova Banganpalli Others Percentage in total Nr of trees Yield Gross returns

Case Study 2: Litchi Case Study 2: Litchi

• Second largest producer in the

world next to China (56,000 ha and 460000 t)

• Cascading production but

available for two months in a year ( mid May to Early July)

• < 1 % exports
• Poor maintenance and under

exploited.

• 33 varieties available, only 2

are commercially grown

• Main markets away from the

production centres and exploitative middlemen and marketing practices

States Varieties Bihar Deshi, Purbi, China, Kasba, Bedana, Early Bedana, Late Bedana, Dehra Rose, Shahi, Manragi, Maclean, Longia, Kaselia and Swarna Rupa Uttar Pradesh Early Large Red, Early Bedana, Late Large Red, Rose Scented, Late Bedana, Calcuttia, Extra Early, Gulabi, Pickling, Khatti, Dehra Dun, Piyazi West Bengal Bombai, Ellaichi Early, China, Deshi, Purbi and Kasba Haryana / Punjab Early Seedless, Late Seedless, Seedless-1, Seedless-2 Varietal Distribution across growing regions

Litchi Diversity on Farm Litchi Diversity on Farm

Shahi 50% China 42% Bedana 2% Longia 3% Kasba 3%

Litchi market chain Litchi market chain

Litchi arrivals into the Litchi arrivals into the mandi mandi Exploitative Under Cover auction in Exploitative Under Cover auction in progress progress

Sl No Particulars Channel I (Sale Through PHC) Channel II (Self-Marketing) ) Price (Rs/Kg) Percent to Total Price (Rs/Kg) Percent to Total 1 Price realised by the Producer 10.5 17.5 20.00 33.33 2 Cost for PHC/grower 2.5 4.17 8.00 13.33 3 PHCs margin 15.00 25.00

• 4

Commission agents price 28.00 46.67 28.00 46.67 6 CA s Margin 6.00 10.00 6.00 10.00 7 Stockists price 34.00 56.67 34.00 56.67 8 Cost and Margin of the Stockist 7.00 11.67 7.00 11.67 9 Retailers Price 41.00 68.33 41.00 68.33 10 Retailers Cost 7.00 11.67 7.00 11.67 11 Retailers margin 12.00 20.00 12.00 20.00 12 Consumers Price 60.00 100.00 60.00 100.00 Price Spread 49.5 82.5 40.00 66.66

Price Spread in Domestic marketing Price Spread in Domestic marketing

Impact of non-performing market on diversity maintenance on farm

• Farmers do not take up self-marketing,
• Depend heavily on other marketing channels
• PHC gets benefit
• Farmer does not take care of his orchards, does

not apply fertilizers or pesticides

• Does not have incentive to maintain different

varieties or for different purposes.

Conclusions Conclusions

• On farm diversity is a tool to augment risk
• Adds to farm income
• Varietal features could

– influence consumer preference and differential price – Prolong season – Support livelihoods

• On farm diversity maintenance may be slow but is

influenced by markets

• Markets and infrastructure needs to be upgraded for

increasing on farm diversity of tropical fruits

Thank you