A collaborative inhouse Study of CML

NOVEMBER 2010

VEGETABLE SUB SECTOR STUDY TO UNDERSTAND THE SUPPLY CHAIN COORDINATION IN DARRANG, BARPETA AND KAMRUP

DISTRICT OF ASSAM

CENTRE FOR MICROFINANCE & LIVELIHOOD

13 J. Baruah Road, Guwahati Club, Guwahati -781003 Assam, India

Ph: 0361-2660323, E-mail: cmlghy@gmail.com, Website: cmlnortheast.com

VEGETABLE SUB SECTOR STUDY TO UNDERSTAND THE SUPPLY CHAIN COORDINATION IN

DARRANG, BARPETA AND KAMRUP DISTRICT OF ASSAM

Study Team

Binota Loitongbam, CML

Piyush Saurabh Sharma, Independent Researcher

Sabiha Mazid, Research Associate

Support & Guidance

Mr. Partho. S. Patwari , Coordinator, CML

Centre for Microfinance & Livelihood (CML)

13, J Baruah Road, Guwahati Club, Guwahati-781003, Assam, India

Acknowledgement

We sincerely acknowledged all the people whom we interviewed during the course of the

study. Without their valuable feedbacks the study would have been meaningless. We express

our gratitude to Mr.Partho Patwari, Coordinator, CML for his continuous guidance & support.

We also give special acknowledgement to Ms Sabiha Majid, research associate for her valuable

part in conducting the field study.

We also thanked those Institutions & the officials for their support in providing us data

and relevant information.

With Regards,

Binota Loitongbam

Saurabh Sharma

Contents

Chapter1 Background of the study

1.1 Background of the study

1.2 Darrang District

1.3 Barpeta

1.4 Kamrup

1.5 Vegetable Production in kamrup,Darrang & Barpeta

1.6 Total Vegetable production area

Chapter2 Scope and Limitation of the study

2.1 Scope of the study

2.2 Objectives

2.3 Methodology of the study

2.4 Limitations

Chapter3 The Vegetable Sub Sector study

3.1 Understanding the vegetable sub sector

3.2 Production Sector

3.3 Wholesale Sector

3.4 Retail Sector

3.4.1 Names of retail markets studied

3.4.2 Price Variation in the chain

3.4.3 Factors that immediately affect the price

3.4.4 Factors affecting market supply and demand and the market contracts

3.4.5 Regulations

Chapter 4 Main Constraints & Opportunities of the vegetable sub sector

Chapter 5 Conclusions

Annexures

Chapter 1 ----------------------------------------------------------------------------------------------------------------------------

Background of the study

Agriculture continues to be main stay of life for majority of the Indian population. It

contributes around 25% of the GDP and employs 65% of the workforce in the country. India is a

leading vegetable producing country in world. Presently vegetable cultivation occupies 6.76

millions hectare area with the annual production of 101.43 million tones. The country being

blessed with unique gift of diverse climate and distinct seasons, make it possible to grow an

array of vegetables number exceeding more than hundred species. To ensure nutrition security

of the growing population of the country, it is estimated that upto 2020, the country vegetable

demand would be around 135 million tones. To achieve this target, it is important to integrate

the various technologies right from production to post-harvest. Incessant growth of

urbanization, ceaseless fragmentation of land holdings, depleting natural resources are the

major challenges before the expansion of any agricultural commodity whether cereals or

vegetables. There is a miss match in area production and productivity of vegetables among

various states of the country. West Bengal ranks first in total production in the country with

production during the year 2004-05 was in tune of more then 18.1 million tones contributing

more than one fifth of total country’s vegetable production.

Over the past two years Assam has been witnessing a huge rise in the prices of vegetables and

other agricultural commodities. Historically Assam and other states of NE region have been self

reliant in production of vegetables as it has been a traditional practice to grow vegetables in

homestead of every house hold. But with spurt in population over the years has given rise to

huge demand of vegetables not only in urban centers but also in rural belts. Though many

pockets in Assam are famous for vegetable production for instance Singimari in Kamrup,

Kharupetia in Darrang and Barpeta Road in Barpeta district, still these clusters have not been

able to satisfy market demand and become export powerhouses.

Darrang

The District of Darrang (undivided) had been created with effect from July'1983 converting the

erstwhile Sub-Division of Mangaldai. The name Darrang was derived from the Bodo word

Dourang, which means 'Lilabhumi'(Playground) of Gods. According to Scholar Late Dineswar

Sarma, the word Darrang came from Dawrang which means gate, as there was direct entry to

Bhutan and from there to Nepal, China etc. Gradually this was known as Darrang. The existing

Darrang district was formed on 1st July, 1983. The district has 6 nos. of Development Blocks.

The district in general is considered to be plain. On the north there exist the Udalguri

District and mighty Brahmaputra flows along the southern boundary of the district. The main

tributaries of Brahmaputra in this district are Barnadi, Nowanai, Mangaldai and Dhansiri. The

forests within the district provide good amount of timber.

The climate of the district is congenial. In the winter, the northern part of the district is colder

than the rest of the district since it is covered by hills and forests of Udalguri District. The

average temperature ranges from 10o to 30o C. Average annual rainfall is about 2120 mm. The

district has 348100 ha of with 28353 ha under forest coverage with net sown area of 210241

ha.

The soil of this district is very fertile for cultivation and the main crops are paddy, oilseeds,

sugarcane and jute. The area is also known for its considerable tea productions. The main

horticultural products are orange, coconut, pineapple etc. In addition, the district is rich with

sizeable production of vegetables.

Barpeta

Barpeta is the headquarters of Barpeta district, Assam, India. Barpeta is renowned in the

Historical map of Assam as the "Land of the Satras". These Satras bear the testimony of the

great Assamese reformer, saint, Scholar and Cultural exponent Srimanta Sankardeva and his

able disciple Shri Madhabdeva who arrived from Upper Assam back in the 16th century to lay

down strong foundation of Assamese Culture in the region through his socio-religious

Vaishnava-reform movement. This reform movement left a historic legacy. The Barpeta Satra

and various other Satras scattered around the district attract devotees from every nook and

corner of Assam.

Barpeta District has 11 nos. of development blocks consisting of 840 villages (undivided Barpeta

district having two civil Sub-Divisions namely Barpeta and Bajali. There are 3 (three) Agriculture

Sub-Divisions i.e. Barpeta, Pathsala and Alupati Majorchar. The district is bounded by Baksa &

Chirrang districts in North, Kamrup & Goalpara districts in south, Nalbari district in east and

Bongaigaon district in west. River Brahmaputra flows through southern part of the district.

River Beki, Manas and Kurishu are the main river of the district which originates from hills of

kingdom of Bhutan to merge river Brahmaputra and causes devastating floods in the district.

The district has 33000 ha of land area with 23441 ha under forest and 310815ha under

agriculture. The soil Barpeta can be classified in sandy, sandy-loamy and forest soil.

The main crops grown in district of Barpeta are paddy, oilseeds, pluses, and topping in

vegetables production amongst all districts of Assam. The district also grows number of fruits

like oranges, banana, Jackfruits and other fruits.

Kamrup

The Present Assam was referred to as Kamrup in many of the ancient Indian literature. It was

also known as Pragjyotishpur due to the astrology (Jyotish Shashtra) practices that prevailed in

this part of the country during that time. However, "Kamrup" became a more predominant

name in the later part of the history. Kamrup is bounded by Udalguri & Baksa districts in north,

state of Meghalaya in south, Nalbari & Goalpara districts in west and Darrang & Kamrup

metropolitan districts in west. Kamrup consists of 15 nos. of development blocks with 991 nos.

of villages.

The district has Sub tropical with semi -dry summer & cold in winter. The average annual

rainfall in the district ranges from 1500 mm to 2600 mm annually with maximum temperatures

of 38.5 C to 7 C in summers and winters. Flood occurs generally in the low lying areas of the

district during May to August every year. Late flood during the later part of September &

October also occurs. The occurrence of flood in the district is due to the river Brahmaputra and

its Tributaries. The main rivers of the district are Brahmaputra, Puthimari, Bornoi, Nona, Kulsi,

Pagladiya, Kalajal and Borolia. The total geographical area of the district is 434500 ha with

181608 ha of net area under cultivation and having forest area of 116694 ha.

The main crops of Kamrup district are paddy, oilseeds, vegetables and other seasonal fruits like

jackfruits and bananas.

Table 1.1

District Land Area

Latitude/ Longitude

Popln in Lakhs (2001 census)

Literacy (2001 census)

No. of Development Blocks

Annual rainfall

Area under agricultural use (ha)

Number of farmers

Darrang 1420.51 sq.km

20o9´N to 26o95´N and 91o45´ E to 92o22´ E

1,504,320

55 % 6 Nos. 2120 mm.

210241 Small – Marginal – Big –

Total 2,43,113

Barpeta 3245 sq.km

26.32°N 91.0°E

1,642,420 61.65% 11 Nos. 310815 Small – 39532 Marginal – 103047 Big – 29230

Total 171809

Kamrup (Rural + Metro-Guwahati)

4938.22 Sq.km

25.46 N & 26.49 N & 90.48 E & 91.50 E

2,522,324 15 nos. 1500 mm to 2600 mm.

181608 Small – Marginal – Big –

Total

Vegetable production in Kamrup, Darrang & Barpeta

Vegetable cropping is in two seasons: Kharif and Rabi. Rabi (mainly vegetables) is the spring

harvest season, with crops sown September to November and extending up into February and

March, with most productivity in areas that receive the north-east monsoon. The Kharif (mainly

paddy) is the main cropping season in much of Kamrup, Darrang & Barpeta commencing in

May-June with the south-west monsoon and extending into autumn (September to November).

From the three districts Barpeta tops the vegetable production and coverage in terms of area.

The most grown vegetable in all the three districts is cabbage, followed by cauliflower and

tomato respectively. Production of brinjal has sharp variation in comparison to Barpeta and

Kamrup & Darrang districts. The production in all three districts show decline in comparison to

year 2005-06 to year 2007-08 which can be one of the reasons for price rise in the market of

vegetable commodity. Other factors like number of rainy days can also be taken into

consideration while assessing decline in production. Many of the farmers in Singimari expressed

their worries on decline in production due to more frequent pest attacks and use of pesticides

and chemical fertilizers to prevent diseases like blight which has deteriorated soil fertility over

the years. Farmers in all the three districts expressed use of chemical fertilizers to be only

option to prevent pest attacks as it gives faster results. Alternatives like bio-manures are low in

use as they act slowly to prevent diseases and hampering productions. Other reasons affecting

production can be reduction in coverage area for vegetable production due to fragmentation of

land and farmers choosing to grow other crops. Comprehensive study needs to be carried out

to assess factors affecting decline in vegetable production.

Table-1.2 Total vegetable production of year 2005-06, 2006-07 and 2007-08 – (Production in

Metric Ton)

Distric

t

Bitte

r

gour

d

Brinj

al

Cabbag

e

Caulif

l-

ower

Okra Pea

s

Tomat

o

Carro

t

Radis

h

Cucu

mber

Total

producti

on

BARPETA

2007-

08

6333 5753 87358 1842

4

7292 882 19310 5232 4084 3268 157936

2006-

07

6333 5253 87358 18424 7292 882 18156 5232 4084 3068 156082

2005-

06

6333 5266 87337 36988 13156 1878 18526 10447 8287 6067 244634

Total 1899

9

1627

2

262053 7383

6

2774

0

364

2

55992 2091

1

1645

5

1240

3

558652

DARRANG

2007-

08

3190 7695 17667 9774 6856 746 15196 4813 4336 2320 72593

2006-

07

3190 7695 17031 9774 6856 746 15196 4813 4336 2320 71957

2005-

06

3190 15375 27862 19533 6838 1477 30809 4798 4322 4260 118464

Total 9570 3076

5

62560 3908

1

2055

0

296

9

61201 1442

4

1299

4

8900 263014

KAMRUP (R)

2007-

08

1419 10140 13044 15383 8280 1728 13816 2587 7538 3245 77180

2006-

07

1419 10140 13044 15383 8280 1728 13816 2177 7538 3245 76770

2005-

06

1419 10125 26266 15367 8267 1725 13792 2156 7537 3231 89885

Total 4257 3040

5

52354 4613

3

2482

7

518

1

41424 6920 2261

3

9721 243835

(Source – State Horticulture Mission, Guwahati)

Total vegetable production area

Vegetable growing areas over the years has declined in all the three districts. Barpeta district

tops the coverage area followed by Kamrup and Darrang. Barpeta has decline of 3829 & 3759

hectares and Darrang has decline of 3666 & 3631 hectares of land area in vegetable cultivation

from the year 2005-06. District Kamrup has decline of 582 & 562 hectares of land area from

year 2005-06 which is much lower then Barpeta and Kamrup. The decline in coverage is sharp

which has resulted in low productions. Coverage of cabbage cultivation is most in Barpeta and

Darrang districts followed cauliflower. Kamrup district tops in coverage of peas followed by

cauliflower in terms of coverage.

Table-5 Total vegetable growing area coverage of year 2005-06, 2006-07 and 2007-08– (Area

in hectare)

Distric

t

Bitte

r

gour

d

Brinj

al

Cabba

ge

Caulifl

ower

Okr

a

Pea

s

Tomat

o

Carro

t

Radis

h

Cucumb

er

Total

productio

n area

BARPETA

2007-

08

720 403 4111 1230 496 1001 836 295 441 326 9859

2006-

07

720 403 4111 1230 496 1001 786 295 441 306 9789

2005-

06

730 404 4110 2470 895 2135 785 589 895 605 13618

Total 2170 1210 12332 4930 188

7

413

7

2407 1179 1777 1237

DARRANG

2007-

08

378 591 833 672 557 786 621 238 456 238 5370

2006-

07

373 591 803 672 557 786 621 238 456 238 5335

2005-

06

373 1181 1605 1343 556 1555 1259 237 455 437 9001

Total 1124 2363 3241 2687 167

0

312

7

2501 713 1367 913

KAMRUP (R)

2007-

08

120 716 581 1059 630 2676 614 126 647 231 7400

2006-

07

120 716 581 1059 630 2676 614 106 647 231 7380

2005-

06

120 715 1170 1058 629 2675 613 105 647 230 7962

Total 360 2147 2332 3176 188

9

802

7

1841 337 1941 692

(Source – State Horticulture Mission, Guwahati)

Chapter 2

-------------------------------------------------------------------------------------------------------------------------------

Scope of the study

The study is proposed to identify the existing production and demand supply channel,

constraints & opportunities and other factors such as market infrastructures and institutional

arrangements supporting vegetables production and its marketing focusing on the districts of

Darrang, Barpeta and Kamrup in Assam. There are various ranges of vegetables produced in the

region. The study is focused on the major vegetables that were produced during the particular

study period. The study also aims to identify critical gaps in the sub sector chain and try to

come out with possible intervention strategies to strengthen the existing gaps. The study also

focuses more on the producer’s and the production system.

Objectives

Identify the primary actors in the vegetable sub sector and understand the roles & relationship and the market contracts.

To track the route of the vegetable from the producer to the customer and analyze the variation in price through the various channels

Identify various internal and external factors influencing the sub sector

Identify the constraints in the value chain that hinders growth of the producers and critically analyze the opportunities

Methodology of the study

The study used the sub sector analysis by starting with value chain map to identify the key

players and the different supply routes in the sector. At the producer’s and trader’s level,

Information has been collected directly through preset questionnaire, one to one interview and

focus group interactions. Structured one to one interviews were conducted in the case of the

wholesalers and retailers due to the constraint of organizing focus group discussion. Secondary

data were collected through various sources which include web searching and visiting

secondary institutions.

Limitations

Lack of substantial secondary data was clearly a limitation of the study. Existing data were

mainly on agriculture production and data relating to the fresh vegetable production were

seriously lacking.

Chapter 3

------------------------------------------------------------------------------------------------------------------------------

The Vegetable Subsector

The subsector approach is a systems study to an economic activity, emphasizing on the

interdependence of economic units, particularly those involved in the production and

distribution process. Fresh vegetable that are served in every household comes through some

processes involving transactions, linkages between each process or units and while the usual

assessment of economic impact focus on mainly one units such as the producers and

consumers, sub sector analysis covers traders, wholesalers , retailers and all the other

important participants in the commodity sub systems.

For the purpose of our study, we have taken the basket of common vegetables produced

majorly in the state. These vegetables were identified from the feedbacks of different actors,

from the field observation in the market and also from the secondary data sources. The study

was also constrained by the lack of accurate data on each particular vegetable.

The vegetable subsector in the three districts as shown in the table below. Production,

wholesale trading and retailing are the four important functions identified in the chain. Each

value chain has been described in the study.

Table: Vegetable Sub sector representation

FARMERS GROW INDIVIDUALLY (KHARUPETIA, BARPETA)

TRADERS (directly purchase

from the producers and sell

to wholesale market)

Indirect MIDDLEMAN (directly

purchases from the producers

and sell to other middlemen)

PRODUCER CUM TRADER

(some producers directly take

their goods to wholesale

market)

TRANSIT MARKET (TRADERS SOLD

TO OTHER WHOLESALERS)

Beltola,Dispur,

MACKHOWA (main wholesale market in

Guwahati

PRODUCTION

PRODUCER’S

MARKET

(Balugaon,Barpeta

Road Market)

TRANSIT MARKETS

WHOLE SALE

RETAIL

SMALL RESIDENTIAL

MARKET

Other main markets

such as Dibrugarh,

Dimapur,Cachar

PRODUCERS

The production sector under the study revolves around the study done amongst farmers in

Singimari under Sualkuchi Development Block of Kamrup district and Kharupetia under Dalgoan

Development Block of Darrang district and farmers in Barpeta Road & Sarbhog in Barpeta

district. All the farmers interviewed were small and marginal farmers having a land holding size

from 5-30 bighas of land (One & half acres to 5 acres). The parameters kept for the study are as

mentioned below: i) Types of vegetables produced, 2) Volume of production, 3) selling of

produce, 4) Transportation of commodities, 5) Pricing of vegetables, 6) Wastage of vegetables,

7) Support institutions, 8) Use of chemical fertilizers, 9) Use of chemical fertilizers, 10) Labor.

Types of vegetables produced

Farmers in all the three clusters produced vegetables on commercial lines which serve as

mainstay of their income generation. While farmers in Kharupetia & Barpeta district grow

vegetables throughout the year, farmers in Singimari grow vegetables only in Rabi season.

Singimari cluster is famous for production of brinjals (eggplant) which is known as Bhola Bangna

locally. In the Kharif season Singimari farmers grow paddy as the village is low lying resulting in

water logging which is not conducive for vegetable cultivation. Apart from vegetables other

commodities grown in the area are mustard, corianders & chilies.

Table 7 –List of main vegetable produced by the farmers in the three district

Name of the district

Vegetable commodity

Darrang (Kharupetia)

Beans, Squash, Bitter gourd, Lemon, Ridged luffa (zika), Pumpkin Ridge gourd, White gourd, Ladyfinger, Pointed gourd, Cucumber Cabbage, Brinjal (Eggplant)

Other commodities Jute & paddy

Barpeta Cabbage, cauliflower , tomato, brinjal, Radish, carrot, Knolkol, cucumber, Ridge Gourd, Sponge Gourd, Snake Gourd, Assam Lemon, Bitter gourd, Bottle gourd, Pumpkin, Lady’s finger, cowpea, Pointed gourd, squash, Potato

Other commodities Jute, paddy, oilseeds

Kamrup (Singimari) Brinjal (Eggplant), Cucumber, Radish , Coriander, tomato, cabbage & cauliflower

Other commodities Paddy, Mustard

Volume of production – The farmers in all the clusters were able to tell about quantum plucking

they do on day to day or weekly basis but on most of the occasions they were not able to

calculate what volume they grow in one season. In comparison farmers in Barpeta road &

Kharupetia can make out their profit & loss from Singimari & Sarbhog farmers. In all three

clusters farmers could only give rough estimates of production commodity wise in one season.

Selling of produce – Farmers at Barpeta and Kharupetia in Darrang district sell their produce in

regulated market under Assam Agriculture Regulated Marketing Board with local and outside

traders. Many farmers in Sarbhog and Singimari also sell their produce in open markets which

are not under control of municipal town committees or Assam Agriculture Regulated Marketing

Board. Most of the farmers in Singimari which is just at distance of 10 KM from Guwahati take

their commodities directly to wholesale markets of Machkowa, Fancy Bazaar, Athgoan and

Beltola based at Guwahati.

Transportation of commodities – Farmers generally carry vegetables to regulated markets in

thelas, bullock carts to farm gate and open markets. Farmers at Singimari and Barpeta district

hire trucks, Tata magic and 407 collectively to take commodities to wholesale markets in

Guwahati and farm gate market at Barpeta Road respectively. In case of distress sale of

commodities like tomato transportation becomes huge cost for farmers.

Pricing of vegetables - Farmers in Singimari fix the price a bit arbitarily which is generally at

higher side. No calculation on coverage of cost of production is kept by them before pricing the

vegetables. While farmers in Barpeta and Kahrupeta keep calculations of cost of production

inputs such as land preparation, purchase of seeds, fertilizers & manures, labor cost (generally

own labor), cost fencing and sheds no such calculations are kept by farmers at Singimari &

Sarbhog. Many Singimari farmers revealed that they have been just living at subsistence level as

they just somehow manage breakeven from framing activity.

Wastage of vegetables – There were different reasons of wastage of vegetables as reported by

farmers in all three clusters. Prominent reasons for wastage were over production of tomatoes

in district of Barpeta, pest attacks in Singimari and Assam bandhs. Farmers never calculate

quantum of waste they incur while transit of vegetables to wholesale markets and weekly

haats. In event of bandhs most of the time farmers get the news before hand and they do not

pluck vegetables for sale. Farmers in Singimari and Sarbhog never keep factors at mind such as

losses incurred due to wastage, whereas farmers in clusters of Kharupetia and Barpeta kept

such factors while making profit and loss calculation after selling commodities. Few of the

farmers also reported some farmers committed suicide due to losses incurred by growing

tomatoes due to over production and distress sale in district Barpeta.

Support institutions – Based on interactions with farmer’s institutional support has been low

from all corners in the three clusters under the study. Farmers lack introduction to new

technologies and trainings on modern farming methods. Lack of adequate infrastructures like

transportation and market sheds to support marketing of fresh vegetables are decapitated.

Linkages with financial institutions for availing credit are poor as banks have not been actively

providing credit. Many farmers in all three locations have been taking loans from moneylenders

at higher rates of interest which is returned by them after the harvest. Farmers responded

ASSAM GRAMEEN VIKAS BANK-AGVB has been instrumental in providing credit through KCC

loans. Support from NGOs and voluntary institutions have been negligible in the area in

facilitating market and other linkages and trainings on modern framing technologies amongst

farmers. NGOs like SDCCC in Sipajhar under Darrang district have been instrumental in

implementation of Assam Agriculture Competitiveness Project-AACP along with district line

departments in Kharupetia and other parts of Darrang & Udalguri district. The project provides

farm machineries and equipments to small and marginal farmers through subsidy. The NGO

facilitates proper social scanning and forms Common Interest Groups-CIGs amongst farmers.

It was found that in Singimari Cluster lacked irrigation facilities and consequently many farmers

left framing to adopt other income generating vocations like weaving.

“You will give us what? Nothing if we would have talked to some government officer or some

lawyer they would have taken 400-500 rupees from us. Nothing is possible here.)

A framer in Singimari Cluster on being asked is there any possibilities of forming NGOs or

farmers club to the study team

An unwelcoming example can be drawn with example of poor institutional delivery mechanism

can be from Singimari cluster, where a market shed and cold storage (3000 MT storage

facilities) facilitated by ASSAM STATE AGRICULTURE REGULATORY MARKETING BOARD

(ASARMB) lays idle since time of setting up of the infrastructures. Farmers reported vegetable

productions are only in Rabi season and Singimari lies only at distance of 10 Km from Guwahati

which is big market where productions are absorbed on daily basis. The market shed is

misplaced as most of the commuters passing by like to take vegetables on roadside rather

entering into the shed. Farmers expressed if government would have arranged trainings on

modern framing methods and facilitated proper irrigation facilities it would have been of much

benefit.

Other inference can be drawn from district of Barpeta which has highest production and area

coverage of vegetables. Barpeta district lacks proper warehousing and cold storage facilities to

keep vegetables. Only a privately owned cold storage (2500 MT storage capacity) found at

Sarbhog area in Barpeta district was operational storing potatoes, beets and eggs. A framer

from Mandia in Barpeta district revealed that tomatoes and potatoes result in distress sale or

thrown away in river as clod storage facilities are negligible near vegetable production clusters.

Nagrijuli, Lotibari and Parkijuli produces enough vegetables mainly potatoes and Kingdom

Bhutan provides excellent trading opportunities to farmers here. But potatoes result in

distress sale here due to absence of cold storage.

Bapi Dey Sarkar, Vice President Lok Sewa Samity, Baksa district

Note – All the three locations mentioned in the comment are under Nagrijuli Development

Block of Baksa district.

The principal marketing yards (PMY) facilitated by the ASARMB are occupied by the armed

forces and remain non-operational. Indian Army & CRPF occupies the PMY in (Kharupetia)

Darrang and (Howly) Barpeta. It is tough affair for farmers transporting their agricultural

commodities to these marketing yards as they are not placed near production areas. Scheme

has been initiated by ASARMB which provides transport subsidies of 30% to farmers for

carrying their commodities to these yards.

A market shed in Khraupetia for sale of staples and other agricultural commodities covering 16

bighas of land has been raised by ASARMB. The shed has been effectively facilitating

transactions between farmers and traders in fair environment. The ASARMB has been

supporting the traders and farmers through issuing of trade licenses to traders and forming

grower’s society amongst farmers. Farmers in Kharupetia also expressed for facilitation of

better Infrastructures like to cold storages, processing centers and warehousing facilities.

NABARD has been extending training facilities on modern farm management through

NGOs/VOs in Barpeta & Kharupetia. In Singimari cluster NABARD has no presence.

Development institutions like NABARD, KVKs & State Agriculture Department needs to do much

more in disseminating information of framing technologies, facilitating infrastructures like cold

storages, vegetable processing units and involve themselves, in-house management, staffs

trainings and in market research.

State Agriculture Department has been implementing various development initiatives for

agriculture in Assam, but there has been very little impact visible. Data collection methods in

regulated markets are not up to date as the study team never got any instant data from

ASARMB in all three locations and its head office based in Guwahati. Confusion and chaos

prevailed amongst officers whenever asked for any data both in State Agriculture Department

& ASARMB. A classic case of official delay in executing development projects can be cited in

district of Barpeta where under a government scheme meant for distribution of seeds could

reach to farmers through department after harvest season was over due to late arrival of seeds

(as reported by DAO).

Internal coordination amongst departments and banks needs to strengthen in providing

credit schemes like KCC to small and marginal farmers. DAO, Barpeta expressed his

unhappiness over not extending KCC loan to deserving farmers by bank officials. He informed

the issue has been raised in monthly DDA meeting infornt of Barpeta district Deputy

Commissioner wherein a framer referred by his department for credit was refused by bank and

instead service holders were being provided loans of greater sizes. In many cases over financing

units were also observed by DAO.

Use of chemical fertilizers – Use of chemical fertilizers in all three locations were visible.

Farmers expressed use of chemical fertilizers and pesticides are inevitable as pest attacks are

frequent and gestation period of vegetables gets delayed and vegetables are not able to hit the

markets at time. Use of organic manure & pesticides was almost non-existent and unpopular

preposition amongst farmers. When enquired about reasons for not using bio-fertilizers and

pesticides farmers told that these are slow to react and does not promote proper growth of

crops, this delays in late arrival of vegetables to markets and vegetables from outside flood the

markets with their commodities. Cost of chemical fertilizers and pesticides increase cost of

cultivation for farmers, which can be reduced through introduction of organic manures and

effective pest management technologies. In Singimari cluster farmers are facing problems of

low production due to over use of pesticides which is over the years reducing soil fertility. The

alarming use of chemical fertilizes must be taken into account as neither farmers know the ill

effects nor the end customer. Government and voluntary organizations need to play greater

role to control such issues.

Seeds – Farmers used both hybrid and indigenous seeds for cultivation of vegetables. The use

of hybrid seeds of vegetables was more prevalent in clusters of Kharupetia and district of

Barpeta. Farmers in Singimari cluster used indigenous seeds for growing brinjals (Eggplant) and

hybrid seeds for coriander and reddish and other Kharif season vegetables.

Labor – Most of the farmers used self labor in their fields as they were small and marginal.

Bigger farmers hired outside labor for working in their fields. Cost of labor varied from Rs.150/-

to Rs.100/- in all the three clusters.

WHOLESALER

Traders involved in the wholesale sector are traders at farm gate market and in urban centre

like Machkhowa market at based at Guwahati. One to one interviews were carried with these

traders for purpose of the study. The traders at the farm gate market are regulated by the

ASSAM STATE AGRICULTURE REGULATORY BOARD (ASARB) and traders in urban centers of

Guwahati, Barpeta & Darrang are regulated by municipal town committees. The main job of

ASARB is to provide infrastructure support to traders and producers and establish a fair-play of

transactions amongst farmers & traders. The Machkhowa wholesale market is one of the

biggest markets based at Guwahati having 125 Nos. of wholesale traders. The Machkowa

market is being controlled by trade Association which is under lease from Guwahati Municipal

Corporation. The license is renewed every year to the trade union. Traders across districts of

Barpeta, Darrang, Kamrup, RiverRhine areas of Brahmaputra and outside state like West Bengal

& Meghalaya merge at the Machkhowa market to sell vegetable commodities. The

wholesale market based in Darrang and Barpeta district is controlled by Municipal Committee

which is leased to individuals on contract. The main job of these lease individuals is to maintain

facilities, collect taxes and provide protection to traders under the market.

There is large gap in prices from farmer to retail market; the vegetable sector is constrained by

poor market infrastructure and availability of space. There are two main types of wholesale

markets in the three sectors –

Rural periodic markets In rural areas these markets sit on daily, weekly and twice in week. Farmers sell their vegetable commodities directly to local wholesale traders and outside traders coming from urban centers like Guwahati. Assembly markets The size of the market is bigger than the rural haats and similar to farmers market. Here traders from different districts assemble, merge and transport vegetable for sale in cities throughout Assam. Traders in Barpeta road send vegetable commodities to traders at New Delhi through contracts. Here farmers produce is assembled for transport to a city market, with the payment to farmer through mutual bargain. The farmers also take beforehand knowledge on prices of commodities from bigger wholesale markets like Machkhowa. The wholesale sector needs infrastructural changes for efficient operations and professional

handling of services. Proper placements of infrastructures with market research needs to

carried out based on demand/supply. Infrastructures like cool storages, modern weighing

machines and internet connectivity is must for connectivity. The ASARB must adopt legislative

changes for greater transformation in terms of market regulation as many of its functions gets

triangulated with town municipal committees and local Panchayat bodies. Price regulation does

not exist on fresh market commodities at the regulated markets. The prices depend on one to

bargain between farmers and traders.

RETAILERS The retail sector is largely occupied by tiny individual vegetable sellers. The study carried was conducted five retail markets based Guwahati.

The names of the market are as mentioned below Beltola Bi-weekly market, Beltola evening market, Goat market, Kacharighat Market, Uzanbazar Market, Fatasil Market & Dispur Super market These retail markets are leased by Commissioner-GMC to individual contractors who are responsible upkeep and maintenance and collection of taxes from retail shop owners. The rate specified for setting up shops are in range of Rs.20/- per day. Other cost include Rs.20/- to Rs.100/- per day for carriage of vegetables from wholesale markets. The cost increases or decreases on volume of vegetable commodities brought to retail market. Most of the retailers procure vegetable from Machkhowa wholesale market, wholesale markets based in Meghalaya and other small vegetable growing clusters within Kamrup district itself. The retail markets are located in convenient location accessible to consumers. The retail sector has got potential of private investment which can boost inflow of technologies, improvements in infrastructures and quality vegetables to end consumers. Companies like Reliance fresh and food bazaar which have sizable presence in some other states are yet to make any investment in northeastern states. Price Variation in the chain The study has attempted to draw the price variation within the various chains starting from the

producers market to the retail market where the consumers finally get the vegetables. The

prices listed below reported during the study period and does not remain fixed for all time

Table 3.3 Price Variation of vegetables (Month of August)

Factors that immediately affect the price

The price fixed at Machkhowa wholesale market affects the price at the producer’s market, not the other way round. When there is bandh in Guwahati, the price in the farm gate (producers’ market) goes down, as there will be fewer traders and more producers.

Prices goes down during the season, because there will be more production, the traders will have more options to choose from many producers, this leads to the traders having more bargaining edge than the producers.

Arrival of new season vegetables fetch more price and prices decline overtime as the season starts going off.

Carriage cost is one of the major factors affecting price of vegetables depending upon the place.

As vegetables are fast perishable commodities and the market doesn’t have storage facilities, the producers have to sell off their goods at the earliest possible, as the price will be lower and also the wastage will be high.

The price of vegetables goes high due to incessant rains which affects production. Low productions are not able to make up to market demand. Many areas in River-Rhine areas of

Vegetable name Price at which traders procure from producers (Rs.)

Price at which wholesalers procure from traders (Rs.)

Price at which retailers procure from wholesalers (Rs.)

Price at which retailers sale to consumers (Rs.)

Ridged luffa (zika) Rs. 2500-2700 per quintal (Rs.25/- to Rs.27/- per Kg.)

Rs. 29-30 per kg Rs.33 per kg Rs. 35-40 per kg

Pointed gourd (potol)

Rs. 1500-1800 per quintal (Rs.15/- to Rs.18/- Kg.)

Rs. 20 per kg Rs. 22-25 per kg Rs. 30 per kg

Beans Rs. 1800 per quintal (Rs.18/- Kg.)

Rs. 20 per kg Rs. 22 per kg Rs. 25 per kg

White gourd (kumura)

Rs.2700-2800 per quintal (Rs.27/- to Rs.28/-)

Rs. 30-32 per kg Rs.35 per kg Rs. 40 per kg

Rigde gourd (bhul) Rs. 1000-1500 per quintal (Rs.10/- to Rs.15/- Kg.)

Rs. 15 per kg Rs 18-20 per kg Rs. 22-25 per kg

Brinjal Rs. 2000 per quintal (Rs.20/- Kg)

Rs. 22-27 per kg Rs. 30-32 per kg Rs 35-.40 per kg

Spiny bitter cucumber (bhat kerela)

Rs. 1800-2000 per quintal (Rs.18/- to Rs.20/- Kg.)

Rs. 22-23 per kg Rs. 24 per kg Rs. 25-30 per kg

Brahmaputra where vegetables are grown get inundated by flood waters damaging vegetable and other crops grown in the area.

Factors affecting market supply/demand and the market contracts

Seasonality

Seasonality affects the supply/demand mechanisms as number of rainy days affects production because most of the agriculture in Assam is rain fed. Uneven pattern of rains (more or less) affects the cultivation process and results in deficit production in Kahrif season. In Rabi season suffer in many areas due to lack of irrigation facilities. Farmers having small land holding in Niz-Gandhmow village under Sualkuchi Development Block of Kamrup district had left vegetable farming which use to be there mainstay of livelihood generation in want irrigation facilities. These farmers have switched over to weaving as alternate livelihood option. A drip irrigation system can be effective tool for revving the vegetable cultivation amongst the farmers with small landholding patterns. Networks The networks are poor at all levels in the chain. The district agriculture office is implementing various schemes for the welfare of farmers but institutional delays result in poor support. Gram Sevaks operating in their respective areas need capacity building in understanding issues related to agriculture and felicitate development works initiated by Agriculture Department. The ASARMB has presence in all the regulated markets and work effectively. Infrastructures such as market shed are improving with intervention from ASAMRB. Kharupetia & Singimari have facilities such as market shed and cold storages. Proper placements of infrastructures are big concern as many of the infrastructures build are lying ideal due to improper placements. Institutional support to farmers from development institutions like NABARD/State Agriculture Department/NGOs/Banks needs to intensify their activities for making timely intervention. Banks need to identify proper farmers to support credit delivery through KCC and facilitate crop insurance schemes like RKBY. There was no presence of corporate investment at the farmer and retail sector as visible in other parts of the country. Infrastructure Poor arrangement of market infrastructure results in distress sales of commodities due to overproduction as there is less number of cold storages and market shed needs modernization. Transport facilities also need to modernize for facilitating carriage of goods. Communication systems need to be at place for weather forecasting and other critical issues related to framing. These market infrastructures have been facilitated by ASAMRB and town Municipal Corporation. Supplies of off-peak season’s vegetables can be maintained if number of chain

cold storages are increased. The number of market infrastructures in the region is as mentioned below – Table 3.4 Details of Market infrastructure

Sl.No Particulars Numbers

Barpeta Kamrup Darrang

1 Number of wholesale markets

2 Number of market shed

3 Number of cold storages

4 Number of Principal Marketing Yards

5 Number if terminal markets

Information flow It was tough to make assessment of demand as there were no official data were available. The data in regard to export and import of vegetable commodities are not available. Records of commodity wise transactions were not recorded on daily basis on any of the markets. Many producers were also selling the commodities in informal open markets, like farmers in Sarbhog sell vegetables in Patilidah of Bongaigaon.

Regulations

Assam State Agriculture Marketing Regulatory Board – ASAMRB is the main regulatory body

regulating the markets in Assam. Besides ASAMRB most of the markets in Assam are controlled

by Zila Parishad (Panchayat) and town municipal committees in urban areas. Most of the

vegetable and other agricultural commodities are marketed under the regulated market but

many commodities are also sold in small open markets. There exists a contravention between

Acts of Zila Parishad (Panchayat Act), ASAMRB and Municipal Act which hinders

commercialization of vegetable products on issues of establishments of market infrastructures.

Assam Agricultural Marketing Regulatory Board – Assam Agricultural Produce Market Act,

1972 has come in to force since 1977 the object as emphasized on the legislation has not yet

succeeded fully. The main hindrance in attaining achievement is the conflict amongst the

provisions of Assam Agricultural Produce Market Act. 1972, the Panchayat Act, 1994 and the

Municipal Act on the matter of establishment of market. The Assam Agricultural Produce

Market Act, 1972 prohibits the local authorities or other persons to markets popularly known as

Haat, primary wholesale and secondary wholesale markets in the entire state of Assam. The

provisions of the AAPM Act, 1972 have been amended time to time. The AAMRB is centered

towards welfare of producers by helping farmers create and establish fair transactions with

traders. The main job of AAMRB is to provide infrastructure support (Market shed, marketing

yards, cold storages etc.), License to traders and take welfare measures for producers.

Establishment of growers society & Provision of transport subsidies (30%) to farmers

.Mismanagement are found in the Present System or traditional markets in method of sale,

weighing, delivery, payment etc. and a wide difference of Producer’s rupee and consumer’s

rupee is also found in the existing system of Agricultural Marketing. All these bottlenecks and

constraints are the major factor of non-receiving the better price by the Producers. Hence, after

due consideration of all these factors adverting the interest of Producers the Assam Agricultural

Produce Market Act, 1972 is enforced in the State of Assam for providing better regulation of

buying and selling of Agricultural Produces and establishment of Regulated Market in Assam.

But due to some hindrances the aims and objects of the said Act has not achieved to that

extract. The Assam State Agricultural Marketing Board has now therefore reviewed the entire

progress of works under the Assam Agricultural Produce Market Act, 1972 and considers the

present condition of Agricultural Marketing System in Assam it is decided to develop the

marketing system under the Assam Agricultural Produce Market Act, 1972 by formulating a

Five-Year Plan and through its execution within the stipulated period. AASRMB has taken

several development initiatives for welfare of farmers and strengthening of marketing

management. Recently AASRMB has initiated schemes for welfare of farmers like provision of

transport subsidies and establishing transport subsidies. AASRMB has also initiated

establishment of infrastructures by increasing number of cold storages, market sheds and PMY

and Sub-Yards. The AASRMB has been also putting efforts to maximize shifting of market

transactions from existing traditional markets to regulated market yards.

Panchayats The Panchayat Act regulating the wholesale markets are leased out to individuals.

These individuals are responsible for providing maintenance of the infrastructures, collection of

daily taxes from traders operating in market sheds and protecting & negotiating conflicts

amongst traders and farmers. The Act is not centered towards development of farmers or

taking welfare measures for traders for establishing fare play of transactions.

Town Municipal Corporations – Town municipal corporations are responsible for maintenance

of retail and wholesale markets in urban locations of all districts. The Town Municipal

Committees lease out these markets to individuals and associations on lease agreements. The

main job of the associations is to collect tax or cess from retailers, wholesalers and traders

selling or bringing vegetable commodities to wholesale and retail market. In turn these bodies

provide protection to the entire market, make arrangements for cleaning the market and

upkeep the market. These bodies controlling the market pay monthly payment to municipal

corporations from the earnings.

Chapter 4

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Opportunities & Constraints

Oppotunties

Organic farming

Widespread uses of chemical fertilizers have increased over the years amongst farmers for preventing pest attacks, increasing productions and hitting the market at the right time with the produce. Farmers in many pockets still do not know use of chemical fertilizers and use farm yard manures for cultivation. Proper training on organic farming amongst farmers provides immense opportunities for organic cultivation of vegetable on commercial lines. The farming must target on enhancement of productions, timely harvest of vegetables and reduce pest attacks. Organizing the production and retail sector Private investment can foster organic farming of fresh vegetables which can add value to

farmers produce. The effort can also organize small and marginal farmers under one roof.

Corporate investment can introduce modern technologies and investments can come up for

improvements of infrastructures such as cold storages. But this can also reduce marketing

options for the farmers by giving rise to contract farming which has to be taken in

consideration. Technologies can track volume of production on each harvest season which can

help to make assumptions on market local market requirements of vegetables and availability

of vegetables for exports.

Constarints

Technology Technology has been one of key bottlenecks in promoting vegetable cultivation on commercial lines and developing market forces. At the farmer level lack of modern irrigation facilities, use of chemical fertilizers and pest management techniques hinders productivity. The problem needs to be addressed with disciplined approach by government and apex development institutions (NGOs/CBOs, NABARD/State Agriculture Department/PRIs) working in field of agriculture. It was observed during the study use of chemical fertilizers and pesticides were high in order to increase production and control pest attacks. Trainings need to be provided to farmers on precision application of bio-fertilizers and pesticides which can enhance productivity and preserve microbial content of soil and control pest attacks. Market forces must adopt modern technologies for adopting proper supply chain management

approaches, planning and subsequent improvements. Suitable technologies can be procured

from nabohgering state of West Bengal, which tops vegetable production in country.

Adopt systems and supply chain management approaches to planning and improvement.

Increase developmental work for suitable varieties and productivity improvement under high temperatures. Foster uptake and improvement of low-cost structures and micro-irrigation systems.

Reduce overuse of chemical fertilizers and enhance precision application through and use of bio-fertilizers.

Reduce pest and disease losses while minimizing reliance on chemicals for pest and disease management by improving pest management practices.

Chapter 5

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Conclusion

There is an established value chain in Kharupetia and Barpeta road vegetable sub sector while

the regulatory authorities such as the ASRARB and Municipal Corporation are also visible in the

interaction between at various levels. As the study was of a small scale and of limited scope, it

could only observe the external influence such as tax collection, fixing of price limit in some

cases. Further critical analysis is needed to identify to come up with more strategies to

strengthen the role of the regulatory authorities.

Commercialization of vegetable cultivation requires establishing markets and trading centers

with adequate storage facilities close to production centers. There cannot be commerce unless

there are markets. Without commerce value addition will not take place and low-incomes,

poverty and unemployment would be the end result. Indeed the low productivity levels of

irrigated agriculture in Assam seen earlier can be attributed to the absence of commercial

opportunities that markets and trading centers would throw open.

Regulated markets and trading centers with adequate storage facilities are needed to provide a

space where the farmers, traders, and in a limited way even retail buyers can interact in the

price discovery process. This is essential for farmers to respond to market signals. Markets and

trading centers have to be close to the production centers. Else farmers being mostly

unorganized would lose out to the relatively more organised traders, especially on account of

transport costs. Faraway markets offer very little incentive for commercial production and in

such a situation farmers would restrict their cultivation to meet their self-consumption needs. It

is high time that the government and development planners recognize that markets, trading

centres and storage facilities are complementary ‘commercial’ infrastructure to irrigation

facilities, which is a ‘technical’ infrastructure, and should be developed along with irrigation

facilities. The government should invest in developing regulated markets and trading centers

with adequate storage facilities across the entire state. Developing such market centers in a

short period should be fairly easy. The target should be to at least double the number of such

markets in Assam over the next three years and to attain a level comparable to Punjab or

Haryana within a decade. This would provide a far better incentive to farmers to adopt modern

technologies essential for commercialization than using the same resources for providing

subsidized fertilizer, irrigation and other farm inputs.

The role of private sector must be recognized here. Private sector may be expected to play a

major role in the development of ground water based irrigation systems as such systems

typically allow full control to the private agent investing in them. On the other hand, major /

medium irrigation projects have many of the characteristics of public goods, and hence would

not attract private investments. It is then primarily the responsibility of the government to

develop such major / medium irrigation systems. Similarly, the private sector is unlikely to take

initiative in developing general-purpose agricultural markets and marketing yards, though some

narrow private channels of trade might emerge over time. Here too, the initiative has to come

primarily from the government.

For development of irrigation, the following actions are needed:

Ground water irrigation – shallow tubewells with appropriate institutional structures.

Surface water irrigation – for promoting the geographic spread of rabi season and for

flood control.

Marketing and storage facilities.

Attain the level in West Bengal within a decade.

The ultimate objective should be to have a regulated market / trading centre with

storage facilities close to every village (say within 20 to 25 km – so that a farmer can

make a same-day round-trip to the market to sell his produce).

It is also becoming increasingly difficult for the small vegetable producers to remain

competitive in the economic systems without overall assistance.

ANNEXURES

Table : Tools used with respondents details

Type of methodology

Place Names of respondents Date No. of respondents

FGDs with farmers & traders

Bihudia, Khokjani in Kharupetia, Darrang

Niz-Gandhmow, Singimari, Kamrup

Barpeta Road, Barpeta

Md.Zulfikar Ali, Md.Abu Bakar, Sri Diganta Baishya, Sri Harmohan Basihya, Sri Kanak Baishya, Sri Naba Bharali, Sri Sanjay Das, Sri Ramen Das Md.Sarafat Ali, Md.Mafizul Islam, Md.Saiful Islam

24/06/2010 22/06/2010

12 Nos.

6 Nos.

5 Nos.

Interviews AAMRB Head Office, Balugaon, Kharupetia

Sri Hemendra Kr.Deka, MI (AAMRB)

24/06/2010

--

Balugaon market, Kharupetia market, Darrang

Md.Rakib, Tax Collector, Balugaon market

--

AAMRB Head Office, R.K. Mission Road, Guwahati

Sri Jatin Sarma, MO (AAMRB) --

Barpeta District Agriculture Office, Barpeta town, Barpeta

Sri Samir Chakraborty, DAO --

Sipajhar Diamond Club Community Centre, Sipajhar, Barpeta

Sri Bhupen Nath CEO-MF, SDCCC

24/06/2010

--

Jyoti Social Society, Sarbhog, Barpeta

Sri Narayan Goswami, Secretary

--

Sarbhog, Barpeta Sri Bhabin Ch. Roy, Vegetable farmer

--

Sarbhog, Barpeta Sri , Vegetable farmer --

Mandia, Barpeta Sri Shubash Pal, Vegetable farmer (Potato)

--

Sarbhog, Barpeta Sri Nakul Pal , Cold Storage owner

--

Singimari, Kamrup Sri Haren Barman, Village headman(Gaonbura), Singimari

--

Sualkuchi, Kamrup Sri Nayan Kakoti, RGVN --

Assam State Agriculture Sri Saikia, Assam State --

Department, Khanapara, Guwahati

Agriculture Department, Khanapara

Retailers at Guwahati --

Annexure 2. State-wise area of vegetables for India 1999/00 to 2002/03