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

Markets as incentives for sustainable models of on farm diversity in production systems – Lessons from sub-tropical fruits from India

CROP WISE AREA UNDER MAJOR FRUITS IN INDIA TFT Diversity status TFT Diversity status APPLE MANGO 8% 50% BANANA 16% CITRUS LITCHI GRAPES GUAVA 18% 2% 1% 5% PRODUCTION SHARE OF MAJOR FRUITS IN INDIA A PPLE OTHER S 2 % 2 0 % B A N A N A 3 7% M A N GO 2 3 % C ITR U S GR A PES LITC HI 10 % GU A V A 3 % 1% 4 %

Status of area and production of important fruits in India Area Production Productivity Highest productivity Crop in India (t /ha) (‘000 ha) (‘000 t) (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 / No. of cultivars Remarks Inter generic In active diversity commercial cultivation Mango Intra specific 30 Largest producer with well developed markets for Citrus Inter specific 25 conservation through utilisation Grape Inter specific 20 and above Banana Intra specific 9 Litchi Intra specific 33 Absence of efforts

Contributing factors for agri agri- -biodiversity biodiversity Contributing factors for maintenance maintenance Market oriented Production oriented • Agro-climatic suitability– multi • Consumer preference – layered cropping / specific varietal preference crop • price advantage – premium • Season of availability – mixed price orchards, orchards with • Institutional support – intercrops specialized/ exclusive • Diversified utility – table types, market infrastructure processing types • Favorable policy – • Technological – tissue culture, incentives for exports, grafting etc., special emphasis

Diversity of TFT – – Intra specific; Intra specific; Diversity of TFT 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 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. Mango

Case Study : Mango Case Study : Mango Trend of mango pulp export quantity and value from india Farmers maintain about ten varieties on 100000 35000 farm. 90000 30000 While totapuri accounts for 50 % of the 80000 25000 farm area, others like neelam, beneshan V a l u e R s . l a k h s 70000 Q u a n t i t y ( M t ) and badami also hold significant farm 60000 20000 area 50000 15000 Totapuri is mainly processed 40000 Export of mango pulp recorded a growth 30000 10000 of 2 % per annum. 20000 5000 10000 Of the total Rs.2 970 million earned, 50 % 0 0 is from totapuri 1995- 1996- 1997- 1998- 1999- 2000- 2001- 2002- 96 97 98 99 00 01 02 03 Different varieties are grown for years Quantity different purposes. Neelam being late Value fetches a premium price

Mango Diversity on Farm Mango Diversity on Farm 6.00 Local Benishan 5.00 5% 10% N u m b e r o f v a r ie tie s 4.00 Badami Total 10% 3.00 Per acre 2.00 Totapuri Dasheri 50% 5% 1.00 Neelam 0.00 20% 1 2 3 4 5 6 Cluster landholding mango Proportion of varieties/farm Distribution of diversity across farms

Mango market chain Mango market chain Producer Product flow: fresh processed Pre-harvest Information & monetary flow: contractor Wholesaler / Semi-processor commission agent Processor Retailer Exporter Consumer 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 Sale for processing • Producer (P) -Pre Harvest Contractor (PHC)- • Producer (P) -Pre Harvest Wholesaler/commission agent Contractor (PHC)- Wholesaler/commission agent (WS/CA) – processor- Retailer (WS/CA) – Retailer (R) – Consumer (R)- Consumer (C) : >40 % (C) : >60 % • P – Processor ( Semi- processing) – Exporter – • P – PHC – Co-operative market – R Foreign market : 40 % – C : 15 % • Semi-processing • P – WS /CA- R- C : 15 % • Small- scale, Canning units, Three months in a year • P – C : 5% • Custom processing, raw material and packing material • P – Exporter – Foreign market : 1% provided by the buyer, Rs. 2250/t for converting to pulp. • Sell to big processors or exporters

Costs and Margins in Fresh Costs and Margins in Fresh Vs Processed sales Vs Processed sales Processed Fresh Costs and margins of mango fresh Vs processing (Totapuri) (Neelam) sale Farmer Net gain 17.8% 22.9% 20 Costs 14.8% 7.4% PHC V a l u e ( R s / K g ) 15 Margin 15.2% 10.8% P/R margin Costs 9.1% 4.5% 10 P/R cost WS Ws margin 5 Margin 8% 14% WS cost PHCs margin Costs 8% 3.5% 0 PHCs cost Pro/ret Processing Fresh sale Farmers margin Margin 4.9% 21% sale Farmers cost Costs 22% 16%

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

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

Varietal Distribution across growing regions 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 / Early Seedless, Late Seedless, Seedless-1, Seedless-2 Punjab

Litchi Diversity on Farm Litchi Diversity on Farm Longia Kasba 3% 3% Bedana 2% Shahi China 50% 42%

Litchi market chain Litchi market chain

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

Price Spread in Domestic marketing Price Spread in Domestic marketing Sl Particulars Channel I Channel II No (Sale Through PHC) (Self-Marketing) ) Price (Rs/Kg) Percent to Total Price (Rs/Kg) Percent to Total 1 Price realised by the 10.5 17.5 20.00 33.33 Producer 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 7.00 11.67 7.00 11.67 Stockist 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

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