Regional Agricultural Marketing and Cooperative Office

Enhancing Agricultural Marketing System and building

vibrant Farmers g

roups and Cooperatives

Background

• AMS created to cater services of RNR marketing within PPD, MoAF

• DAMC established in Oct 2009 and started to operate as department from March 2010

• RAMCO earlier known as RAMS is regional office of DAMC

• RAMS established in 2006-2007 with inception of AMEPP

• RAMCO formally begun its function from 2010 with inclusion of cooperatives mandate with marketing mandate

• Currently staffed by 17 staffs including contract and supporting staffs.

Mandates1. Develop and ensure proper functioning of market

activities, infrastructure and establishment of new infrastructures at regional level, where necessary;

2. Facilitate establishment and functioning of Farmers Groups and Marketing Cooperatives at regional level

3. Provide institutional support and advice on marketing of RNR products;

4. Reinforce linkages between Dzongkhags, major market outlets and head office to facilitate marketing processes;

5. Establish effective market information services at Dzongkhag-level in collaboration with line agencies

6. Provide market based training to extension agents at regional level;

7. Provide marketing training to producers in collaboration with the head office;

8. Conduct regular regional market studies (price, demand and supply situations) and collect and communicate marketing information to head office;

9. Coordinate and promote implementation of marketing related activities, including agribusiness and rural credit at the regional level;

10. Assist head office in Monitoring & Evaluation of marketing programs;

11. Undertake programs to build capacity in marketing staff and facilitate farmer capacity building at regional level.

12. Provide guidance to Cooperatives in export markets at regional level

Development areas

• To oversee marketing system and cooperatives development in Six eastern Dzongkhags (Lhuntse, Mongar, Trashiyangtse, Trashigang, Pemagatshel and Samdrupjongkhar)

• Dzongkhag marketing focal person in each Dzongkhag (DAO)

• Closely liaise with relevant agencies (Dzongkhag Sector heads, RNR-RDC Wengkhar, RLDC Khangma,

FCB, BCCI, RTIO, RRCO, BIFA Samdrupjongkhar) for the implementation of activities

Overall budget allocation-MAGIP

RAMCO Amount in BTN (mil)Apprisal allocation 64.511 MTR Allocation 48.641

Fiscal Year Appraisal budget allocation MTR budget allocation2011-2012 10,817,900.00

2012-2013 32,389,500.00

2013-2014 16,782,900.00 13,045,500.00 2014-2015 4,520,500.00 14,917,500.00 2015-2016 16,028,000.00 2016-2017 4,680,000.00 64,510,800.00 48,671,000.00

AWP&B approved budget and fund utilization

Fiscal Year

AWP&B approved budget

Fund received

Fund utilized

Un-utilized fund

Remarks (Amount in BTN million)

2011-2012 10.818 8.830 8.398 0.432Fund couldn't utilized due to late approval of Budget from IFAD as project was in initial year

2012-2013 15.824 14.874 14.047 0.827

Some fund was surrendered because site for construction of OSFS at Nganglam was not approved by BPCL. The budget for dairy equipments which was allocated was given to Livestock component

2013-2014 22.348 1.000 0.939 0.060Though the allocation for this FY is Nu.13,545,500, the previous fund balance was revitalized

48.99 24.704 23.384

Major achievements

A. Marketing development

Infrastructure Lhuentse Mongar T/yangtse T/gang P/gatsel S/jongkhar Total

Market Shed 3 5 1 5 9 5 28Produce Store 2 1 14 9 7 3 36

Collection Centers

1 8 9 30 2 4 54

Sales outlet 1 16 4 11 6 3 41

Zero Energy Cooling Chamber

0 2 1 2 4 0 9

Value addition Equipment

Dairy equipment, Sugarcane crusher, Chips making machine, Kharang grinder and grader, Stitching, Sealing, weighing machine

Packaging materials Plastic crates, perforated nylon bag, Non woven bag, Butter paper, egg tray, plastic bag

Capacity building

Capacity building programme Male Female Total

Farmers 1163 586 1749RNR staffs & RAMCO 362 56 419

Market Research & Study

VCD Potato, Citrus, Dairy, Vegetables, Rubia, Chirata

CoP Egg, vegetables, Animal Feeds

Other studies Pest & Disease guidelines, Water efficiently technology, Input supply

Transportation support

Transport support Rice trial marketing, Fish, Rajma beans, Potato, Citrus pulp, Vegetables, Mangoes, Chilli, Pullet, Amla & other RNR products

B. Cooperative Development

Dzongkhag

Livestock Sector Forestry Sector

Total no. Coops

Total Members

No. of coops

Members No. of Coops

Members

M F TotalM F Total

Mongar 2 14 29 43 1 36 9 45 3 88

Trashigang 2 44 113 157 0 0 0 0 2 157

S/jongkhar 1 95 29 124 0 0 0 0 1 124

  5 153 171 324 1 36 9 45 6 369

Registered primary cooperative

Registered Farmers groups  Agriculture sector Livestock Sector Forestry Sector

Total FGs

Total Membe

rsRegistered FGs

Members Registered FGs

Members Registered FGs

Members

M F Total M F Total M F Total

Lhuntse 1 6 0 6 2 19 21 40 2 10 20 30 5 76

Mongar 17 52 135 187 11 86 93 179 0 0 0 0 28 366

Trashigang

7 20 43 63 7 107 86 193 0 0 0 0 14 256

Trashiyangtse

0 0 0 0 9 68 49 117 6 140 95 235 15 352

Pemagatsel

7 70 50 120 3 56 60 116 7 190 102 292 17 528

S/jongkhar

3 90 38 128 4 106 41 147 3 120 25 145 10 420

  35 238 266 504 36 442 350 792 18 460 242 702 89 1998

Capacity building programme

Sl. No Activities No. of Members

Male Female Total

1 Group Formation Training 232 177 409

2 Record and Book keeping training

350 80 430

3 General Leadership Training 53 5 58

4 Female Leadership Training 0 65 65

5 Awareness on CAB 2009 and CRR 2010, OSFS and Contact Farming to 20 Informal Farmers groups in east with fund support from UNDP

36 14 50

6 Awareness on CAB 2009 and CRR 2010 to all the Shakeholders

265 28 293

  Total 936 369 1305

Farm road and Water User Groups

Lhuentse Mongar T/gang T/yangtse P/gatsel S/jongkhar Total

RUG 0 11 10 17 11 22 71

WUG 2 12 3 11 0 44 72

Lhuentse Mongar T/gang T/yangtse P/gatsel S/jongkhar Total

No. of OFSF

1 3 7 0 2 1 14

One Stop Farmers Shop

Updates on MAGIP support program

• Market infrastructures: OSFS 12, Market shed 1, Collection shed 1, Sales counter 11, Detachable Shed at Auction Yard 3

• Value addition equipments: 5000 plastic crates• Linkages and Institutional Strengthening: school

linking, traders meeting, meeting with financial institutions

• Capacity building programme: farmers training, exposure visits, RNR staff training

• Trial marketing of Mango, Avocado, Pears, Citrus• Marketing support- transportation

Agriculture support

Livestock support

Infrastructures• Processing and sale outlet at Sherimung, Mongar• Egg sale outlet at Ngatsang• Milk sale outlet at Yadi• Milk collection shed at Saling• Hygienic dressing table to Boiler Farm at Lhuentse Capacity building of staff• TOT on record and book keeping• ADLO Trashigang and Fishery person from Samdrupjongkhar were send to

Thailand to learn on cooperatives• Awareness on forming fish cooperatives at Pemathang and Langchaphu• Book Keeping training FGs and Cooperatives (Livestock sector)• Chairman of Dewthang Milk marketing Cooperative has been trained in India and

Japan• Chairperson of Chaskhar has been trained for 6 months in Delhi • Recently on member from Themnangbi has been send to Delhi• Group registration-

Marketing support• Supported to conduct fish exhibition• Transportation support on fish marketing• Provided plastic crates (each Dzongkhag)• Market linkage between boiler farm and meat

shop at Mongar• Linked Wangling group with GHSS for supply of

egg• Yurung Livestock group is linked with schools• Business development support- Chaskar 250000,

Themnangbi-237000, Pam-237000, Dewthang-237000

Market study• Study on cost of production of egg (5.57/egg)• Feeds• Tashi has done some study• ADLO has done poultry• Assist FGs and Cooperatives in pricing their milk

and milk products

Forestry support

• Capacity building- Merak chirata group formation, group formation at Lauri- 8 groups and record and book keeping training, soap and shampoo making training

• Finalization of LGOC member and developed by-laws• Market linkages for NWFPs- Zyanthozylam, Chirata, Rubia, Star-

aneis, Pipla, Amla, Lemon grass oil and soap• Support in organic certiciation- Lemon grass oil, Amla, Rubia,

Winter green, artimesia,• Cost of production- Lemon grass soap, • Support for packaging materials• Study- Value chain on Rubbia, Chirata, Amla, Mannual for

domestication of Chirata and Paris polypera• Value addition- deseeding machines for Amla, dryer machines,

Lemon grass soap cutter, transparent sheet to two incense making units (Mongar and Lhuntse)

• Support for auctioning of NWFPs at production site (not successful)

Vegetable Value Chain Program- East

To increase income of more than 2500 households in six eastern Dzongkhags by 5 to 15% by 2014.

• Programme started by mid 2011• Programme implemented in collaboration with six

Dzongkhag Agriculture Sectors, RNR-RDC Wengkhar and SNV)

• Covers 33 Geogs • Involves 114 groups • Benefits 1517 households • Major vegetables:-(Cabbage, Cauliflower, Radish, Carrot, Beans, Peas and also

includes other vegetables)

• Production very little before VVCP-E (contributed only 0-5 percent of total income)

• About 40 percent increase in vegetable production after VVCP-E

• Today vegetables have become important sources of income for 1517 HHs

• 40 percent contribution to total income• 60 percent of total production is sold for income

generation• Home consumption- 21percent• Damage- 19 percent

(based on monitoring report 2013)

Contd…

Year 20122013 (Up to 2nd week Nov 2013)

Total qty produced (MT)

592.90 769.47

Total qty sold (MT)- (60 percent of total pdn)

355.74 481.68 (46.6% increase)

Income earned (Nu. in million)

5.130 7.524 (33% increase)

Year 2012 2013No. of groups 69 114No. of members 1370 1517Geog coverage 29 33

Vegetable marketing

• Local markets- Dzongkhags, sales along road side (infrastructure, information sharing, even transportation support for trial marketing etc..)

• Auctioning system• Trial marketing

Identified six potential markets in nearby towns in Assam (Rangia, Nalbari, Tamulpur, Kumarikata and Guwahati).

Frequent strikes affecting marketing of vegetables Insufficient qty, poor quality and inconsistent supply major

bottlenecks in marketing of vegetablesBhutanese vegetables marketed in India by some Indian

vendors.

• School linking programme Piloted GHSS and Jakar HSS with MoU between MoAF and

MoE Beneficial to both Institutes and Farmers Groups Found out to be potential markets for vegetables marketing 31 institutes/schools linked with 57 FGs 257.8 MT supplied in 2013 and helped to generate Nu.

4.166 milllion

Prospect to link 106 schools/institutes- annual requirement- 1499 MT per year amounting Nu. 23.53 million

Exit strategy for VVCP-E (Link)

Overall exit strategy of support for marketing and cooperative

• Strengthening FGs and cooperatives (Production/growers association)- support and capacity development

• Promotion of associations ( FGs, Coops, traders and transportation)

• Promotion of private sector for RNR enterprise• Infrastructure- more focus on community (OSFS)

and groups, agencies like FCB for efficient and sustainable utilization- cold store

• Establish multi utility facilities

Main issues• Ad hoc and additional fund request from Dzongkhags • Fund release (partial release hampering work execution)• Unplanned, scattered and seasonal production • Inconsistent production and supply (quality and quantity)• Lack of trust among buyer and sellers (poor linkages)• High percentage of post harvest losses• Limited resources- (market infrastructures,

transportation, packaging)• Lack of awareness on marketing and cooperative

programme• Over dependent on government and poor participation• Poultry- farmers not taking up poultry farming in a

business venture (problem of spent birds)

Supports required

1. Market infrastructures-more OSFS in strategic locations, easy service delivery, product outlet, market sheds, collection sheds and sales outlets

2. Product diversification and packaging (different sizes)3. Value addition equipments (dryers, Vacuum sealing

machines and packaging materials)4. Market exploration- RNR products5. Marketing support- Transportation and packaging6. Capacity building : (Group mobilization, leadership,

record and book keeping, marketing aspects, exposure visits)• FGs and cooperatives• RNR Staffs

7. Implementation of capacity building modules (Generalities, Governance, Leadership, Record and Book keeping Marketing, Business plan development, Financial mgt. (single and double)

8. TA support on:• Business plan development • Market research and studies• Value chain

9. Develop RNR enterprises on value chain modules

Required support to upscale production for Nganglam market

1. Up scaling of RNR produce-• Agriculture: Potato, Citrus, Rajma, Ginger, Onion, Wheat,

Vegetable, Mustard, Pear, Persimmon, Kiwi, Walnut

• Livestock: Dairy (product diversification), poultry, Fishery

• Forestry: NWFPs- Chirata, Pipla, Rubia, Star-aneis, Amla, Lemon grass oil, Parispolypera

2. Farmers capacity development3. Develop market infrastructure at strategic

locations4. Improvement of Gyelpozhing office- installation

of generator, A/c, furniture and equipment

Way forward/future plan• Establishment of additional market infrastructures at strategic

location (produce store, collection, sales outlets and market sheds)

• Storage facilities (Cold stores (zero energy cooling chambers) and ambient stores

• Market information- explore better means of sharing market information

• Cold store (two already in plan, additional if required in future)• Cool Freeze Van- increase production of perishable items• Market studies and research- more on RNR produce, study on

establishing auctioning facilities at production site• Strengthening Value Chain- identify core RNR products value chains

and strengthen through corrective measures• Private sector promotion- encourage pvt. entrepreneurs to take up

agribusiness through infrastructure development and facilities

• Formation of traders association- assist local traders to form association

• Formation of transport association- See possibility of forming transportation association in collaboration with RSTA, MoIC

• Capacity building programmes for farmers as well as private individuals- trainings, meetings, exposure visits, exchange programs etc

• Improving capacity of implementers- Knowledge sharing, trainings, meetings, exposure visits

• Promote agribusiness through support of capital on cost sharing basis- agribusiness promotion through private incubation one possible intervention- similar to OSFS but with more mandates on agriculture farming

• Cooperative development fund- To use as revolving fund for group and cooperative

• Supply Chain Management- Closely monitor the supply chain of RNR products and direct for proper management