Vegetable Subsector Report by HVR

Vegetable Subsector Study
Submitted to CGSIRD
Conducted by HVR
VEGETABLE SUBSECTOR STUDY IN CHHATTISGARH

Conducted by
Health Vision and Research
GA 97, 1527 Rajdanga Main Road

Kolkata- 700 107, India
Webpage: www.hvr.org.in
Email: health.vision@gmail.com
Ph: +91 33 32009035
Fax: +91 33 2443 1980
For
Chhattisgarh State Institute of Rural Development
Submitted to CGSIRD
Conducted by HVR
TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................. 5
I
BACKGROUND ......................................................................................................................... 15
I.I PROFILE OF THE STATE-A BIRDS EYE VIEW .............................................................................. 15

I.II LITERATURE REVIEW FINDINGS ............................................................................................... 18
I.III CHATTISGARH ......................................................................................................................... 19
I.IV SCOPE OF THE WORK ............................................................................................................... 21
I.I OBJECTIVE OF WORK ................................................................................................................... 22
II
METHODOLOGY .................................................................................................................... 23
II.I STUDY DESIGN .......................................................................................................................... 23

II.II SAMPLING ............................................................................................................................... 24
II.III RESPONDENTS ....................................................................................................................... 24
II.IV COLLECTION OF DATA ........................................................................................................... 24
II.V CHALLENGES ........................................................................................................................... 25
II.VI INFORMED CONSENT & CONFIDENTIALITY............................................................................ 25
III
FINDINGS................................................................................................................................. 26
III.I UNDERSTANDING THE VEGETABLE SECTOR OF THE STATE ................................................... 26

III.II ECONOMICS OF SCALE .......................................................................................................... 41
IV
VALUE CHAIN SUB SECTOR

SECTOR MAP..................................................................................
MAP
46
IV.I BACK WARD AND FORWARD LINKAGES ................................................................................... 46

IV.II ACTORS .................................................................................................................................. 51
IV.III VALUE ADDITION .................................................................................................................. 51
V
SERVICE MARKET .................................................................................................................. 53
V.I PRE-CULTIVATION SERVICES .................................................................................................... 53

V.II CULTIVATION SERVICES .......................................................................................................... 54
V.III POST-HARVESTING SERVICES ................................................................................................ 55
VI
GENDER AND THE SUB SECTOR

SECTOR .................................................................................... 56
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VII
SUB SECTOR CONSTRAINTS

CONSTRAINTS ANALYSIS ..................................................................... 56
VIII
COMPETITIVE ANALYSIS................................................................................................ 62
IX
GOOD PRACTICE ................................................................................................................. 63
IX.I TECHNOLOGY .......................................................................................................................... 63

IX.II WADI FARMING ...................................................................................................................... 64
IX.III MARKET ............................................................................................................................... 64
IX.IV ORGANIC FARMING ............................................................................................................... 64
X
POLICY FRAMEWORK: ........................................................................................................ 65
PRI, SHG, GOVERNMENT DEPARTMENT ROLES, SCHEMES, PPP, NGO ............. 65

X.I NO POLICY, SCHEME MENTIONS OF VEGETABLE PRODUCTION SEPARATELY ........................... 66
X.II ROLE OF LOCAL GOVERNMENT, PANCHAYAT RAJ INSTITUTION: ........................................... 66
X.III SELF HELP GROUP .................................................................................................................. 67
XI
SWOT ANALYSIS................................................................................................................... 68
XII
CONCLUSION AND RECOMMENDATIONS

RECOMMENDATIONS.............................................................. 71
XII.I INTEGRATED PRODUCTION MODEL FOR SMALL AND MARGINAL FARMERS .......................... 71
XII.II INTEGRATED MARKET MODEL FOR STRUCTURING MARKET ............................................... 73
XII.III OTHER RECOMMENDATIONS .............................................................................................. 74
XIII
ANNEXURE ......................................................................................................................... 77
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TABLES AND FIGURES:

Table 1: Land Usage Pattern in Chattisgarh _________________________________________________ 21
Table 2: Topographical distribution of the state _____________________________________________ 26
Table 3: Land holding pattern ______________________________________________________________ 30
Table 4: Season wise preference of vegetables in different terrain ______________________________________ 40
Table 5: Cost Benefit ration of four most preferred vegetables _________________________________________ 41
Table 6: Cost break up of Cauliflower Cultivation on a acre of land ____________________________________ 42
Table 7: Cost break up of Tomato Cultivation on a acre of land ________________________________________ 42
Table 8: Constraints Analysis ___________________________________________________________________ 61
Figure 1: Trend in Area and Production of vegetables in India.................................................................................. 19

Figure 2: Share of land topography ............................................................................................................................ 27
Figure 3: Soil Type and its Characteristics ................................................................................................................. 28
Figure 4: A vegetable farm, Raigarh ........................................................................................................................... 32
Figure 5: Relation between yield and Irrigation ......................................................................................................... 33
Figure 6: Irrigation source and area coverage ........................................................................................................... 34
Figure 7: Trend in Vegetable cultivation for the last 5 years ...................................................................................... 37
Figure 8: Change in vegetables produced in last five years........................................................................................ 38
Figure 9: Participatory preference matrix in progress; Magarlodh, Dhamtari.......................................................... 41
Figure 10: FGD in progress with, Coaliari, Dhamtari ............................................................................................... 46
Figure 11: Subsector map ........................................................................................................................................... 50
Figure 12: Diagrammatic view of different layers of value edition............................................................................. 52
Figure 13: Integrated Market model ........................................................................................................................... 74
References:
1. Annual Agriculture Statistics, Department of Agriculture, Government of India
2. Annual Agriculture Statistics, Department of Agriculture, Government of Chattisgarh
3. Annual Agriculture Statistics, Department of Horticulture, Government of Chattisgarh
4. Annual Action Plan report, Department of Horticulture, Government of Chattisgarh
5. Annual Action Plan 2005-06, Department of Horticulture, Government of Chattisgarh
8. NABARD SIP, 2010-2011, Chattisgarh
9. National Horticulture Mission Guideline, Ministry of Agriculture Department of
Agriculture and Co-operation, Government of India
10. State of Forest Report, 2005 Government of India
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A. EXECUTIVE SUMMARY
India is the fruit and vegetable basket of the world. Vegetable grown in India in about 6
million hectares and forms 3% of the total cropped area in India. Potato is most widely
grown vegetable crop in the country with a share of 25.7 per cent. Tomato occupies second
position amongst the vegetable crops in terms of production. Andhra Pradesh is the largest
grower of tomato with a production of 2.05 MT. Egg plant occupies the third position
amongst vegetable crops. Indias export of Fresh Fruit and Vegetable has increased Rs.
2437.12 Crores in 2007-08. Abundant investment opportunities are there in expanding the
export market. Chhattisgarh stand 15th among all states of India in vegetable cultivation for
the year 2008-09. Export opportunities have boosted vegetable production in Chattisgarh
state for the last few years. Vegetable businesses in Chattisgarh state have gone lucrative
as international markets have opened up to the yield. Chattisgarh is known as the rice bowl
of the country and most of the area is under paddy cultivation. Farmers of Chattisgarh
cultivate paddy in their fields where year round irrigation is available.
The goal of the study is to identify intervention strategy for developing and helping small
and medium-sized agribusiness enterprises such that they could solve common operational
and management problems and compete more successfully in the global economy. The
proposed intervention strategy is based on the understanding of the systems of raw
material
procurement,
production
system,
scope
for
value
addition,
logistics
and
infrastructure, scope for marketing of products, etc., while defining the geographical limits
of each sub-sector to address local needs. CGSIRD desired to hire a resource organisation
for providing consultancy services for this purpose.
The main objectives of the study are
Map and analyze the process of production
Compare and contrast the existing process of production with bigger players
Identify Best Practices, Quality Control Protocols, and Certification Processes
Conduct inflow-outflow analysis and assess the potential for marketing.
Identify domestic and international trends, issues and opportunities
Propose a marketing strategy for a five year period.
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Identify legal hurdles, if any that inhibit effective performance of the subsector.
Suggest models of Public, Private and community partnership that can be replicated in
various regions and identify role of community, Panchayat and private entrepreneurs
therein and also suggest necessary changes in policy & legal framework, if any.
Identify the extent of market led, state led and civil society led coordination failures in
each subsector.
Suggest intervention strategy
Methodology
To conduct the study a stratified sampling of districts was done based on the agro-climatic
topography of the state to select 7 districts spread over the State of Chattisgarh. The
sample was taken mostly from districts where vegetable cultivation is high. The districts
selected were Raipur, Raigarh, Bilaspur, Dhamtari, Kanker, Bastar and Ambikapur.
Respondents were all key players in the vegetable market. Farmers of different agroclimatic zones and different land holdings, market, Panchayat, Administrative units and NGO
were selected to cover every aspect of the value chain.
A. Findings of study
1. Land, Soil, Rainfall and Season

Land of Chhattisgarh can be divided into three agro-ecological regions on the basis of its
topography- the Northern Hills, the Central Plains and the Bastar Plateau.
The northern
districts come into the Satpura range while the Central portion is the plain of River
Mahanadi and its tributaries and the South again rises to form the plateau region. From the
point of view of agriculture, the landform of the state can be broadly divided into the
uplands covering about 25.54 per cent of the state, the midlands covering about 34.98 per
cent of the state and the low land covering about 39.48 per cent of the state. There are
different soil types supporting vegetable cultivation in the state. Rainfall in the state is
moderate with often irregularities in rainfall distribution. Due to irregularity in rainfall
vegetable cultivation is primarily depending on irrigation in the state. In last five years State
Government with support from Central government has concentrated in the State Water
Policy and constructing various major, medium, minor water schemes.
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The agricultural season of the state are mainly two- The Kharif or the monsoon season
where cultivation depends on rain, the Rabi season or the winter crop which depends on
irrigation. In this two season farmers try and space their cultivation to make triple crop from
their land. Based on cultivation periods three seasons can be found- monsoon, winter and
summer.
Vegetable cultivation of the state depends mostly on irrigated water resource. Net cropped
area under irrigation in the state as off March 2009 is 26%, 13.34 lakh hectare. Vegetable
production in districts like Sarguja Bilaspur, Durg , Jagdalpur, Koriya are high but irrigation
coverage hasnt been the best.
2. Labour, Capital and Irrigation
Labour is abundantly available in Chattisgarh at low cost, but in recent years the state is
facing shortage of agriculture labour due to Government job and food security scheme
under NREGS and BPL rationing. It is a good trend in vegetables cultivation in Chhattisgarh
that women are used more in vegetable cultivation but it is a concern as the rates are
exploitative.
Capital is mostly individual for farmers. Formal sources of credit availability are very less. As
observed individual farmers either use their savings or take credit from input markets, like
purchase seeds, fertiliser, and pesticides on credit from dealers and repay them after
harvest. This is highly exploitative as the interest of credit is hidden within the price of the
input. Marginal and small farmers are facing this as they do not have access to formal
credits. In the state there are 12 District Cooperative Agriculture banks in addition to state
cooperative Banks and State Cooperative Agriculture and Rural Development Bank. Ground
level credit flow shows agriculture sector has a credit flow of 51.09% in year 2008-09.
(NABARD PIP 2010-11). Farmers are accessing loans from cooperatives for vegetables but
the percent is very low and is less than half of all farmers. There are 1395 farmers club in
the state for acting as platform to organise farmers and negotiate with formal system of
farming.
The State has five river basins- Ganga, Brahamani, Narmada, mahanadi and Godavari.
area under irrigation in the state as off March 2009 is 26%, 13.34 lakh hectare. Canal
irrigation covers close to 70% land while bore well serves 20%of irrigated land. Irrigation
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coverage has a wide variability with best in Raipur district at 22% irrigated land and least in
Narayanpur with almost no irrigation system.
3. Market-input and output
Vegetable does not have a regulated input or output market. Input for vegetable like seeds,
fertilisers, pesticides, and even machineries are mostly purchased from open market.
Technology has swiped in Chhattisgarh district but only to big farmers.
4. Economics- production, productivity and profitability
Vegetable cultivation in the state has grown in the last five years but productivity is
stagnating out in last two years. Mostly grown vegetables in the state are Tomato, Potato,
Egg plant, Ladies finger. Farmers on their trial and error basis and based on profitability has
changed the vegetables cultivated. A clear change in vegetables production is observed in
the State. Even new vegetables have started to be grown like beans, arbi, radish and green
leafy vegetables. As noted these vegetables are mostly grown by marginal and small
farmers, which show that marginal and small farmers are coming up into vegetable
cultivation.
Preference matrix of farmers and the production of vegetables reflect a close similarity. Six
most preferred vegetables for cultivation across farmers of different land holding and
topography are-
1. Cabbage and cauliflower

2. Bitter gourd
3. Tomato
4. Egg plant
5. Cow pea
6. Local chilli
Cost benefit analysis of top four vegetables according to preference shows more than
double benefit/profitability in production with out much technology input. This shows the
profitability of production of these vegetables can be further increased by improved
technology and package of practice.
5. Value Chain
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The chain of forward and backward linkage transforms the product and makes it usable for
final consumer. The value chain of vegetable below has been categorised into three
segments- input, production process and market. The vegetable market in the state shows
similar picture so it has been put into one frame work. As seen post production there is no
much value addition taking place for vegetables as of today. it is getting used up
domestically in village, block or district markets. During peak season at times it goes out to
the neighbouring states.
6. Input market-
a. Seed fertiliser, pesticides, labour and finance- In production of vegetable the

backward linkage is associated with the procurement of inputs- seeds, fertilisers,
pesticides, labour, capital, water, etc. usually as practiced by most cultivators is that
they procure seed, fertiliser and pesticide inputs from village dealer who in turn
procures from whole sellers within the block, districts or state. Labour has no formal
market and labour is available within the village. Labour wages are fixed on the basis
of demand and supply but still big farmers have a much higher control on prices.
Labour working in the farms of big farmers has a much exploitative rates. Finance
again has different forms- formal or informal sources. Individuals use their own
savings or take credit from banks, cooperatives, farmers club at interest rate of 68% p.a. Informal sources of credit like borrowing from village money lenders or
credits from shops interest rate is high and ranges over 36% p.a.
b. Production of vegetables
Production and transformation of the seed involves the process of land preparation,
seed treatment, seedling preparation and sowing, spraying fertilisers, pesticides and
weeding at regular intervals. After harvest its processing, sorting, packaging and
marketing it to the different markets- village market, block mandi, district mandi or
exporting to outer states. Farmers get 8-10% less payment from the selling price.
Price of product varies on the quality, processed products and demand supply. Prices
of vegetables go down below production cost during peak season.
c. Marketing
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Vegetables produced within state are consumed within the state. During off seasons
vegetables are imported to the state to meet State demand. This creation of market
channel or forward linkage has been solely based on market demand and supply.
There is government storage facility or processing unit in the state. No defined and
prominent food processing sector is present on the vegetable sector in Chhattisgarh.
7. Actors in Value Chain
a. Retail seller of seeds, fertilisers and pesticides or the village dealers:
Farmers purchase inputs from dealers. They form the backward linkage chain.
b. Middle men: they are the persons who sell produce for the farmers in the block
market or district market and take a commission from farmers on their sell. They
help in bridging the distance from remote villages where vegetables are produced to
the whole sell market. From block market again theres a layer of middle man to
district to link the block and district level.
c. Whole seller in out put market: purchase bulk vegetables in block or district
markets and sell it to retailers or whole sellers of the other districts or states of
India.
d. Value Addition
Value addition in vegetable cultivation as per present practice happens at the down stream
end of the value chain. Value addition occurs post harvest with the grading, sorting of
different qualities of vegetables based on size, compactness, dressed (leaves, stem pruned),
etc. different prices are set for different varieties of same vegetables.
Price of different
grades of same vegetable varies from Rs5-10 per kilogram. Retail price of vegetables are
more than double on average than the selling price of producers.
8. Sub-Sector Constraints
Despite these encouragements the market is experiencing typical constraints of a growing

and immature market. The subsector shows the following syndromes:
a. Increased price of major raw materials
b. Severe price competition with imported product
c. Limited value addition
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d. Supply and price variation due to seasonality of the product

e. Poor productivity and profitability of the farmers
f.
Lack of information on market demand
g. Strong market regime
9. Competitive Analysis
Vegetable cultivation is growing in size and so is competition within the market. In some of
the districts where vegetable cultivation has grown and many small and marginal farmers
have joined in the sector, farmers feels with new entry of potential entrants there is a threat
as price of vegetables will go down. The local market is already saturated so there during
peak season of vegetables so unless new scope for export to other districts, states are
created there will be sever competition with new entry of producers. There is a huge gap
between local demand and production so vegetables have to be imported in to the state
from neighbouring state. Change in cropping pattern like paddy followed by paddy can be
replaced with paddy-vegetable where irrigation is available. Farmers have to be motivated
for a shift towards vegetable cultivation for profit earning. In Chattisgarh vegetable
cultivation is still an unorganised sector with traditional practice. Competition depends on
mainly three factors:
1.
Threat of entry from potential entrants.
2.
Intensity of rivalry among existing competitors
3.
Pressure from substitute products
10. Policy Framework
National Agriculture Policy, National Horticulture Mission (NHM) has been formulated along
with State level horticulture policy to enhance and promote agriculture/ vegetable
cultivation within the country and the State.
National Agriculture policy, National
Horticulture Mission and Chhattisgarh State government policy all aim at the growth of
Agriculture sector through an integrated approach. But there are gaps in knowledge and
information at all levels starting from Horticulture Department, Panchayat and community.
Role of Panchayat, SHG has been minimum so far in planning, implementation of different
schemes.
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B. Recommendations
The analyses found substantial scope for expanding the market of vegetables in
Chhattisgarh. Vegetable cultivation in Chattisgarh has a great potential and is a growing
subsector in terms of development of value addition and market expansion. Huge
interventions at different levels from capacity building of community to service providers,
from creating enabling environment for vegetable cultivation to developing infrastructure to
better technology transfer and improved marketing.
This type of model will reduce
irrigation cost and hence production cost. River beds can be leased out to farmers
individually or in group to increase land under cultivation as well generate revenue for local
government. Few major recommendations based on the analysis is highlighted below.
As recommendation it is suggested to adopt-
1. Integrated production model for small and marginal farmers
Year round vegetable cultivation has to be encouraged among small and marginal farmers.
They will be able to employ labour in their farms which will also lead to more work for the
villagers. To maximize economies of scale farmers have to be brought together in cluster for
purchasing of inputs (fertilizers, pesticides, and seeds), machineries, and usage of
machineries and production. For efficient formation and functioning of clusters initial support
and supervision for a period of two three vegetable cycles is required, off season
cultivation of vegetables is a must under proper guidance of technical experts. Components
of integrated production model:
a. Form area based cluster of farmers on pilot basis where vegetable cultivation is on
high and low already, there are fallow lands available and promote vegetable
cultivation
through
these
clusters.
Identify
fallow
land
from
land
revenue
department, Panchayat. Ensure macro-community irrigation system or micro

irrigation system to each farmer.
b. Plan crop in the catchment area depending on the distance of the land from water
source.
c. Select vegetables like tomato, creeper plants, spice crops, tuberous crops for
cropping in the cluster areas, which have high exportable value and longevity.
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d. Improved high yielding variety of crops should be promoted by department through

clusters
e. Training of farmers on improved cultivation practices. Transferring package of
practice for those crops
2. Integrated market model for structuring market

Agriculture has to be viewed as business over and above subsistence. In the world of open
trade, fast paced life processed and packaged food has increased demand in market and
prospects of export. Trade policies have to be reviewed so that private companies come into
the market with contract farming and increase production and profitability.
1. Building up integrated market model in three zones of Chattisgarh like it has been
done in West Bengal.
2. Use existing cold storages for different category of vegetables short period, medium
and long in each zone
Along with the two models other recommendations for improvement of vegetable sector
are-
a. Enhancing area (private and vested land) under vegetable cultivation through
increasing irrigation facility. Hilly undulated area of Northern hills, places with no
irrigation facilities like Narayanpur, Bijapur, Dantewada have to be slowly brought
under cultivation with increased irrigation and land management like 5 percent,
trench, model at individual level. This type of model will reduce irrigation cost and
hence production cost. This type of model can be taken up for small and marginal
farmers and also in tribal belts.
b. River bed cultivation along dried up river can be initiated in a legal frame work. River
beds can be leased out to farmers individually or in group to increase land under
cultivation as well generate revenue for local government.
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c. Krishi Unnayan samiti (KUS) will be responsible for planning of agriculture and
horticulture development plan for the village. KUS will support cluster of farmers in
marketing of products
d. Capacity building of grower in farm business planning, costing and pricing
e. Capacity building of farmers on package of practices for better management of

crops.
f.
Capacity building of clusters in management of group procurement, cultivation,

marketing, finance management, etc for efficient functioning of cluster
g. Forming farmers field school at ground level and creating Master trainers from
within the community to give practical on field training to farmers on better
management of crops.
h. Capacity building of Panchayat to make participatory action plans.
i.
Capacity building of Panchayat members on knowledge of government schemes, its

beneficiaries and benefits.
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I BACKGROUND
I.i
Profile of the state-A birds eye view
Chhattisgarh State lies between 170 96' to 240 5' North Latitude and 800 45' to 840.20'
East Longitude The state borders Madhya Pradesh on the northwest, Maharashtra on the
west, Andhra Pradesh on the south, Orissa on the east, Jharkhand on the northeast and
Uttar Pradesh on the north. There are 18 districts in the State. The entire State comes
under Agro-climatic Zone-VII (Eastern Plateau and Hills Region) which is sub divided into
three sub agro-climatic zones namely, the Chhattisgarh Plains (11 districts), the Northern
Hills of Chhattisgarh (2 districts) and the Bastar Plateau (5 districts). The entire State
comes under Agro-climatic Zone-VII (Eastern Plateau and Hills Region) which is sub divided
into three sub agro-climatic zones namely, the Chhattisgarh Plains (11 districts), the
Northern Hills of Chhattisgarh (2 districts) and the Bastar Plateau (5 districts). Average
rainfall is 1234 mm and heavy downpour takes place between July and August.
Language: The Chhattisgarhi language, a dialect of eastern Hindi, is a predominant
language in the state, recognized along with Hindi as the official language of the state. a
total of 93 dialects or languages are spoken in the state.
River: The Mahanadi is the chief river of the state. Other main rivers are Hasdo (a tributary
of Mahanadi), Rihand, Indravati, Jonk and Arpa. It is situated in the east of Madhya
Pradesh.
Art & Craft: Chhttigarh is home to several culturally rich tribal societies and unique
communities. Their long and close association with nature has culminated in a craft heritage
that is inspiring in all its elements. Bastars dhokhrawork is certainly the most famous
handicraft from this state and its fame has long reached the international stage. The
wrought iron work, wood work, bamboo furniture, terracota pieces, painting and tattoo
works are some of the other famous work of art. These products are known for their unique
quality of rawness that adds to the rustic quality of the products. The state is also known for
its crisp, paper-like Kosa silk that is used for sarees and dress materials.
Tribals: The major tribes of Chhattisgarh region include the Gond, Oraon, Kanwar, Munda,
Kamar, Halbaa, Bharia, Bhumiar, Baiga, Pahari Korba, Abhuj Maria, Bison Horn Maria,
Muria, Bhatra and Dhurvaa tribes. The tribes of Chhattisgarh are known for their unique and
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distinctive tribal culture and each tribal group has its own distinct culture and enjoys its own
unique traditional living styles. They differ from each other in their costume, eating habits,
customs, traditions and even worship different form of god and goddess.
Connectivity: The State is well connected by road and rail network. NH-6 & NH-200 and
Mumbai - Howrah Railway line pass through the State. Only 4 districts are not connected by
rail. There is one airport at Raipur connecting to all major cities of the country. The State is
land locked.
Demographic Profile: The total population of the State as per 2001 census is 208.30 lakh.
Around 79.92% of the population resides in rural areas. The percentage of rural population
is above 90% in Bastar, Kanker, Dantewada and Raigarh districts, the tribal dominated
districts of the State. Chhattisgarh is a tribal dominated State with tribal population
accounting for 31.80%.The State has a literacy of 64.66% (2001 Census) which is
marginally lower than the national average of 64.80%. The literacy percentage for men was
higher at 77.38% as against 51.85% for women. Chhattisgarh is among the least populated
States of the country with a population density at 154 (national average of 331).
Economic Profile: Chhattisgarh has abundant mineral resources. The presence of vast
deposits of coal, iron ore, lime stone, diamond, etc. has made the State a favourite
destination for flow of investments. The State accounts for production of about 40% of total
cement production in the country. There are over 175 large and medium industrial units in
the State which include the Bhilai Steel Plant in Durg district,Steel & Power Plant of
O.P.Jindal group at Raigarh and other units spread over different districts . The major crops
grown in the State are cereals (Paddy, Kado-Kutki, Maize, Wheat), pulses (Gram, Tiwra)
and oilseeds (Ramtil, linseed, mustard and groundnut). Food grains including pulses account
for 84.60% of the area sown in the State.Chhattisgarh produced 50.92 lakh metric tonnes
of paddy during 2006-07, while pulses production was 3.92 lakh metric tonnes and oilseeds,
2.83 lakh metric tonnes. The productivity of paddy at 1425 Kg/ha is lower than the national
average of 1940 Kg/ha.
Banking Profile: The banking sector in the State comprises the Commercial Banks (CBs,
35 in number), the Regional Rural Banks (RRBs, 3 in number) and the Cooperative Banks.
The Cooperatives are divided into Short Term Cooperative Credit Structure (STCCS) and
Long Term Cooperative Credit Structure (LTCCS). The STCCS has a three-tier structure, i.e.
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the State Cooperative Bank (SCB) at the apex(5 Branches), the District Central Cooperative
Banks (DCCBs, 6 in number) at the district level and the Primary Agriculture Cooperative
Credit Societies (PACS) and Large Adivasi Multi Purpose Societies (LAMPS) at the primary
level (1333 units). The LTCCS has a 2-tier structure comprising the State Co-operative
Agriculture and Rural Development Bank (SCARDB) at the Apex level and the District
Cooperative Agriculture and Rural Development Banks (DCARDBs, 12 in number). In
addition, there are 04 Urban Cooperative Banks (UCBs). National Bank for Agriculture and
Rural Development (NABARD) is functioning in the State since 16 July 2001.The Reserve
Bank of India (RBI) has opened its Office at Raipur with effect from 02 January 2007 with
two departments viz. Rural Planning and Credit Department (RPCD) and Urban Banking
Department (UBD). State Bank of India (SBI) is acting as the Convener of State Level
Bankers Committee (SLBC). SBI is also the Lead Bank in 11 districts while Dena Bank and
Central Bank of India have Lead Bank responsibility in 5 and 2 districts respectively. The
Commercial Banks together have a network of 704 branches. 03 Regional Rural Banks,
whose area of operation covers the entire state, have a total of 421 branches. The STCCS
(CGSCB and 6 DCCBs) has a network of 198 branches while the LTCCS (CGSCARDB and 12
DCARDBs) has a network of 83 branches. The total number of bank branches stood at 1416
in the State as on 31 March 2008. The average population per branch is about 14748.The
CD ratio has mostly remained around 60% in the State.
Tribal Situation in Chhattisgarh
The tribal population of India constitutes around 8% of total population distributed over
94,000 tribal villages. Tribals are mainly concentrated in Andhra Pradesh, Chhattisgarh,
Madhya Pradesh, Orissa, Jharkhand, Gujarat, Rajasthan, Maharashtra, West Bengal, NorthEastern States and North-Western Himalayan States. In the State of Chhattisgarh, the
scheduled tribes, with a population of over 57.10 lakh, constitute 31.80 percent of the
States population (2001 Census). Almost 98.1% of this population lives in the rural areas.
Chhattisgarh is one of the States in the country having the highest percentage of population
from the Scheduled Tribes. The Gonds at 55.1 % form the largest proportion within the
tribal population. They are distributed almost equally, in urban and rural areas. The Oraons
the Kawars, the Halbis, the Bharias or Bhumiars, the Bhattras and the Napesias also form a
substantial portion of the tribal population. Thirty other Scheduled Tribes have small
population residing in various pockets across Chhattisgarh. The Gonds are concentrated in
the hilly parts of Southern Chhattisgarh but are also spread across most districts, whereas
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the Baigas, Bharias, Korwas and Napesias occupy only specific pockets. The Bhattras,
Kolams and Rasjas largely live in Bastar and the Kamars in Raipur. The Halba tribe inhabit
parts of Bastar, Raipur and Rajnandgaon and the Oraons live in Surguja and Raigarh
districts. Out of 20308 villages in Chhattisgarh, 9500 villages have more than 50% tribal
population. Of these 9500 villages, 5915 have 75% or more tribal while 1262 villages are
100% tribal populated. Some of the differentiating characteristics of tribal in Chhattisgarh
are elaborated below. The district-wise break up of tribal population in the State is given in
Annexure I.
I.ii Literature review findings
India is the fruit and vegetable basket of the world. India being a home of wide variety of
fruits and vegetables holds a unique position in production figures among other countries.
India grows the largest number of vegetables from temperate to humid tropics and from
sea-level to snowline. India is second largest vegetable producer of world next to China with
an annual production of 87.53 million tonnes from 5.86 million hectares having a share of
14.4 per cent to the world production. Vegetable grown in India in about 6 million hectares
forms 3% of the total cropped area in India. Adoption of high yielding cultivars and FI
hybrids and suitable production technologies has largely contributed for higher production
and productivity in recent years. Per capita consumption has also increased from 95 gram
to 175 gram per day although the vegetable requirement is 300g/day/person as
recommended by dietician. 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. Except a few, namely brinjal (egg plant), colocasia,
cucumber, ridge gourd, sponge gourd, pointed gourd etc., most of the other vegetables
have been introduced from abroad. Potato is most widely grown vegetable crop in the
country with a share of 25.7 per cent. Uttar Pradesh is the leading potato growing state in
the country with a production of 9.53 million tonnes followed by West Bengal and Bihar.
Tomato occupies second position amongst the vegetable crops in terms of production. The
total production of tomato in the country in 1998-99 was 8.27 MT from an area of 0.46 M.
ha. Andhra Pradesh is the largest grower of tomato with a production of 2.05 MT. Egg plant
occupies the third position amongst vegetable crops. The production of Egg plant in the year
1998-99 was 7.88 MT from an area 0.49 M.ha. West Bengal is the largest producer of Egg
plant followed by Maharashtra and Bihar. Cabbage is the fourth most widely grown
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vegetable crop of our country. India is the leading country producing Cabbage. West Bengal
produces 1.84 MT and is the largest grower of the cabbage. The other important vegetable
crops grown in the country are onion, chillies, peas, beans, okra, cabbage, cauliflower,
pumpkin, bottle gourd, cucumber, watermelon, palak, methi, carrot and radish.
Indias exports of Fresh Fruit and Vegetable has increased Rs. 2437.12 Crores in 2007-08
which is including the products like Fresh Onion, Walnut, Fresh Mangos, Fresh Grapes and
other fresh fruits & vegetables. Over 90% of Indias exports in fresh products go to West
Asia and East European markets. However, it needs to augment its food and processing
industry at a mega scale, according to an agriculture consultant. Abundant investment
opportunities are there in expanding the export market. An increasing acceptance of new
products with market development efforts has been witnessed lately given the fact that
there is a good international demand for certain fruits and vegetable products.
Figure 1: Trend in Area and Production of vegetables in India

Source: Agriculture Department, GoI
I.iii Chattisgarh
Chhattisgarh stand 15th among all states of India in vegetable cultivation for the year 200809. Export opportunities have boosted vegetable production in Chattisgarh state for the last
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few years. Vegetable businesses in Chattisgarh state have gone lucrative as international
markets have opened up to the yield. Present area under horticultural crops in Chattisgarh
is 1.25 lakh ha (Horticulture Department, Government of Chattisgarh).
Farmers of Chattisgarh cultivate paddy in their fields where year round irrigation is
available. In case of second crop after paddy, majority of farmers prefer to grow gram,
mustard, linseed, lathyrus which provide less net profit as compared to horticulture crops
i.e. vegetables, flowers, medicinal and aromatic plants. It has been observed that most of
the farmers in the state grow paddy under rain fed condition, which has risk of reduced
yield due to shortage of rainfall. Majority of the farmers are socio-economically poor
belonging to scheduled caste and scheduled tribe categories. Low productivity of rice
(around 1.5 t/ha) along with recurring drought condition leads to large-scale migration of
landless labourers and also marginal farmers. Under such circumstances, large scale
migration can be reduced and the socioeconomic conditions of the farmers and nutritional
levels of the general population can be improved only with proper development of cropping
intensity by way of promoting horticulture in the state.
Chattisgarh state is rich in diversity of biotic, abiotic as well as socio-economic condition,

which favours the cultivation of various horticultural crops like vegetables, temperate,
tropical and high elevation fruits. Though about 25% cultivated area is irrigated, it is only
protective in nature and the irrigation system is designed to protect the rice crop after the
withdrawal of monsoon rains when rice crop enters the reproductive stage. The state is
mainly mono-cropped area with rice as the only crop extensively grown in all soils and at all
elevations. Drought is one of the major constraints for improving the rice productivity
besides other biotic factors like weeds, pest and diseases etc.
RAKESH SAHU, A VEGETABLE CULTIVATOR SAYING: "It is very true that

in the absence of exporting opportunities, the overproduction was to the
extent that we had to feed those (vegetables) to animals to finish our
reserves. But for the last three years, ever since export has started,
cultivation has become profitable."
Story number: ANI20091205007, Source: ANI
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Net land under cultivation in Chattisgarh is only 34.5 percent while area sown more than
once is only 11.8 percent of net sown area. Land use pattern below shoes the possibility of
increasing land for vegetable cultivation in the state.
Land Utilization (Year - 2002) Source: Government of Chattisgarh

1. Total Geographical Area
'000 hect.
13787
2. Area under forest
'000 hect.
6303
3. Land not available for cultivation
'000 hect.
1013
4. Other uncultivated Land excluding fallow land
'000 hect.
1189
a. Permanent Pastures and other Grazing land
'000 hect.
853
b. Cultivable waste Land
'000 hect.
336
5. Fallow Land
'000 hect.
a. Fallow land other than current Fallows
'000 hect.
b. Current Fallow Land
'000 hect.
6. Net Area Sown
'000 hect.
519
239
280
4763
7. Area Sown more than once
'000 hect.
564
8. Gross cropped area
'000 hect.
5327
9. Crop intensity
Percentage
134
Table 1: Land Usage Pattern in Chattisgarh
I.iv Scope of the work

The goal of the study is to identify intervention strategy for developing and helping small
and medium-sized agribusiness enterprises such that they could solve common operational
and management problems and compete more successfully in the global economy. The
proposed intervention strategy would be based on the understanding of the systems of raw
material
procurement,
production
system,
scope
for
value
addition,
logistics
and
infrastructure, scope for marketing of products, etc., while defining the geographical limits
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of each sub-sector to address local needs. The CGSIRD desires to hire a resource
organisation for providing consultancy services for this purpose.
Recently, CGSIRD organized livelihood orientation training for over 6,700 representatives
and officials of Panchayati Raj Institutions (PRIs) of Chhattisgarh. It helped catalyze the
willingness of PRIs to undertake the livelihood promotion process in their areas. In this
process, it was realized that PRIs are in a strategic position to strengthen/promote large
number of livelihoods for poor households, provided they are assisted in identification of
appropriate interventions. Several subsectors were identified during the field based
exercises of the livelihood orientation programs that have great scope for pro-poor
livelihood intervention through PRIs and other concerned entities in the state. Discussions
were held with several experts to finalize the subsectors for the studies. The final list of
subsectors identified for the studies includes i) Dairy; ii) Goat rearing, iii) Cashew; iv)
Vegetable cultivation; v) Lac; vi) Mahua flower & seed; vii) Bamboo; and viii) Pisciculture
I.I
Objective of work
Map and analyze the process of production
Compare and contrast the existing process of production with bigger players
Identify Best Practices, Quality Control Protocols, and Certification Processes
Conduct inflow-outflow analysis and assess the potential for marketing.
Identify domestic and international trends, issues and opportunities
Propose a marketing strategy for a five year period.
Identify legal hurdles, if any that inhibit effective performance of the subsector.
Suggest models of Public, Private and community partnership that can be replicated in
various regions and identify role of community, Panchayat and private entrepreneurs
therein and also suggest necessary changes in policy & legal framework, if any.
Identify the extent of market led, state led and civil society led coordination failures in
each subsector.
Suggest intervention strategy
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II METHODOLOGY
II.i Study Design
The study and its analysis will help to make the choice of the intervention strategy that the
organization can take up for promoting or supporting large number of livelihoods. The
suggestive design for sub-sector analysis is given below:
i. Preparing a preliminary subsector map
Identify the whole value addition process through various processes including
visits to large and small firms to understand in depth how the sub-sector
operates.
Getting to know the sub-sector
Interviewing the key informants
Drawing the preliminary sub-sector map
ii. Refining understanding of each subsector:
Validate and cross-check information gathered to determine accuracy of

information on key players, processes and different channels.
Refining the sub-sector map
Specifying the institutional and environment contexts
Quantifying overlays of particular inter-sets
iii. Analyzing the subsector dynamics and leverage points
Understand change in demand patterns, introduction of new technologies,

entry/exit of different players, etc., as any sub-sector is a dynamic entity
Estimate demand, analyzing the trends locally, nationally and internationally,
over last few years
Identify emerging threats
Identify channels that enjoy the most secure prospects of growth
Identify potential for geographical clustering and system nodes and also the
policy constraints
.
iv. Making the intervention choices
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Suggest choices of intervention strategies that State Government and PRIs can
have to promote or support a large number of livelihoods in the subsector.
Revisit PRI context to determine the options, which are available to them to be
effectively taken up directly or in collaboration.
Develop the Interventions - Competency Matrix.
II.ii Sampling
For the subsector we selected sample seven districts in the state on the basis of mainly two
criteria:
1) Presence of vegetable cultivation- more or less
2) Topography being pain, plateau or hilly
On the basis of these factors, we selected nine districts for our study. They are Baster,
Kanker, Bilaspur, Raigarh, Dhamtori, Ambikapur & Raipur.
II.iii Respondents
Respondents were all key players in the vegetable market. Farmers of different agroclimatic zones and different land holdings, market, Panchayat, Administrative units and NGO
were selected to cover every aspect of the value chain.
Individual interviews were done with 15 farmers, 7 district market were visited and
interacted with sellers and buyers, 3 FGD were done, three NGO were consulted for the
process of data collection.
II.iv Collection of data

Data were collected during the period from 15th Jan to 5th April 2010. The data collection
team consisted of one Project Coordinator, one Project Associate, one Research Associate
and one Subsector Specialist. The primary roles of the Project Coordinator & the Project
Associate were to identify all respondents from different field and make the filed visit
possible smoothly. The Subsector Specialist and the Research Associate jointly visited the
field for 15 days altogether to collect data. In-depth interview, FGD and simple Group
Discussions took place to collect data. Apart from that verification of bamboo processing
units based on certain checklist was conducted. Livelihood analysis was done using
appropriate technique. Apart from the primary data collection, secondary data were
collected using annual reports, technical reports of the department and then verification of
records available.
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II.v Challenges
The sample was taken mostly from districts where vegetable cultivation is high. Districts like
Jagdalpur; Durg was not covered through filed visit. The Subsector Specialist could not visit
each area where the research associate has gone. Therefore our study universe has some
limitations to capture the whole universe neither it was fully random based selection rather
sometimes convenient and purposive. However, samples were adequate to capture the
variations and to understand the magnitude of the problems.
II.vi Informed consent & confidentiality

Respondents were informed about the purpose of the study. Because there were possibility
in difference in opinion and conflict of interest involved in providing data, the respondents
were ensured about confidentiality and privacy issues.
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III FINDINGS
III.i Understanding the vegetable sector of the state
III.i.a
Land topography
Land of Chhattisgarh can be divided into three agro-ecological regions on the basis of its
topography- the Northern Hills, the Central Plains and the Bastar Plateau.
The northern
districts comes into the Satpura range while the Central portion is the plain of River
Mahanadi and its tributaries and the South again raises to form the plateau region. From
the point of view of agriculture, the landform of the state can be broadly divided into the
uplands covering about 25.54 per cent of the state, the midlands covering about 34.98 per
cent of the state and the low land covering about 39.48 per cent of the state.
Topography
Northern Hills
Bastar Plateau
Chhattisgarh Plains
Districts
Sarguja
Koriya
Jashpurnagar
Dharamjaigarh Tehesil of Raigarh
Jagdalpur
Dantewada
Kanker partly
Raipur
Rajnandgaon
Mahasamund
Kabirdham
Dhamtari
Bilaspur
Durg
Korba
Janjgir
Raigarh partly
Kanker partly
Table 2: Topographical distribution of the state
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Figure 2: Share of land topography
Hilly Region 25.54

Plateau 34.98
Plain 39.48
About 25.32 per cent of the state comprises undulating topography interspersed with rolling
plains (3.62 per cent of the state) and hummocky landform (18.79 per cent of the state).
These three landform categories are found clustered together, and usually a landform that
has been exposed to prolonged denudation tends to exhibit these types of residual features,
namely, hummocks and rolling plains. About 6.67 per cent of the state is under ridges,
which is highly dissected. These areas are spread over the northern parts of Surguja
districts, in the southern parts of the Garyaband and Mainpur blocks in Raipur district, and
the Nagri block area of Dhamtari. About 4.11 per cent of the northern part of the state is
covered by flat-topped plateau, essentially in the southern parts of Korea and Surguja and
northern parts of Bilaspur districts. 17.91 per cent of the state comes under the flat or level
topography, which is largely found in the Chhattisgarh Basin in the central belt of the state.
These plains mainly adjoin the river valleys of Godavari, Mahanadi and Sabri rivers. Besides
these, small localized patches are found scattered all over the state, usually alongside
bigger and more perennial tributaries of the main rivers. These flat areas are highly fertile,
and sites of intensive agricultural practices. Along with these flat plains, valleys form the
intervening areas and about 17.46 per cent of the state comprises river valleys. In these
areas are also vegetables are cultivated during the dry season when the soil moisture
content is high.
The categorization of the blocks according to broad landform types shows that 21.77 per
cent of the blocks come under the category of highland areas in the north, 47.62 per cent of
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the blocks comprise undulating to rolling topography and are situated in the southern parts
and about 30.61 per cent of the blocks are considered to be flat, or fairly low-lying areas,
with gentle undulations at places.
III.i.b
Soil type
There are broadly four types of sol available in Chhattisgarh according to topography which
supports various types of cultivation in different seasons. The different types of soil found
are-
Figure 3: Soil Type and its Characteristics

Kanhar (clayey): A low-lying deep bluish black soil with high moisture retention capacity.
It is well suited for rabi crops, particularly wheat.
Matasi (sandy loamy): This is a yellow sandy soil, with an admixture of clay. It has
limited moisture retention capacity. Though used for paddy, it is ideal for short duration
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maize and deep-rooted pulses. It is found in better-drained areas and at relatively higher
altitudes.
Dorsa (clay-loam): This type of soil is intermediate in terms of soil moisture retention
between kanhar and matasi. This is best described as loamy, and is a colour between brown
and yellow. This is more or less an all-purpose soil, and is suitable for paddy.
Bhata (laterite): This soil is a coarse-textured, red sandy-gravelly soil, found on upland
tops. It is deficient in minerals and other productivity enhancing nutrients, and is often
suitable only for coarse millets. It is low in humus content and is often wasteland. It is a
good locale for silvipastoral efforts.
About 60.81 per cent of the uplands have shallow soil types. The midland areas of
Chhattisgarh have fairly deep to moderate soil type, which after some treatment can be
brought under cultivation. Generally, the lowlands have heavy to deep soils, which have
high water retention capacity due to high clay content. These soils have better nutrient
value and are suitable for paddy cultivation. Such deep soil is concentrated in the central
belt of the state, which constitutes the rice bowl of the state. The highland areas with
shallow and poor soil quality are the areas of immediate concern, as some of these areas
that also have low vegetative cover are prone to high erosion. About 9.67 per cent of the
total area of the state comes under this category.
a. Land size
In Chhattisgarh as like many others states of the country number of marginal and small
farmers are the majority. More than half of the farmers are marginal farmers with minimum
capacity and land holding less than 1 hectare. Little more than 1/4th of the farmers have
land holding more than 2 hectares of land.
Description
Number (Lakh)
Percentage
Marginal (0-1 hectare)
15.22
51.31
Small (1-2 hectare)
6.24
21.04
Big (>2 hectare)
8.20
27.65
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100.00
Table 3: Land holding pattern

Source: Department of Agriculture, Government of Chhattisgarh
III.i.c
Rainfall
Rainfall in India varies from place to place and from year to year. The country's average
annual rainfall is about 120 cm over the geographical area of 328 million hectares. In
Chattisgarh nearly 90% rainfall occurs in 4 months of the year. The normal annual rainfall in
Chattisgarh is about 1400mm.
In general the topography is plain with gentle regional slope towards North West and North
direction. The area is covered predominantly by sandy, silts, sandy loam, and clayey soils
and generally the soils of the area are fertile in nature. Chattisgarh receives fairly good
quantum of rainfall. Most of the rainfall occurs during the southeast monsoon season i.e. in
the months of July to September. The rainfall is so uneven that the annual averages have
little significance on the main crop of the state which is Paddy. In fact; every third year,
there is always a threat of drought, which is due to uneven occurrence of rainfall rather than
deficient rain.
Due to irregularity in rainfall vegetable cultivation is primarily depending on irrigation in the

state. Maximum production takes place during 6 months just after monsoon through April
when surface water is available. In last five years State Government with support from
Central government has concentrated in the State Water Policy and constructing various
major, medium, minor water schemes. This has improved the flow of water in the state and
cultivation has become more even through out the year.
III.i.d
Crops grown
III.i.d.i
Season
The agricultural season of the state are mainly two- The Kharif or the monsoon season
where cultivation depends on rain, the Rabi season or the winter crop which depends on
irrigation. In this two season farmers try and space their cultivation to make triple crop from
their land.
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a. Monsoon season This season starts from mid June and continues till October where they
are depended on rain water. Main crop of this period is paddy. Vegetable crops grown in the
season are mostly creeper crops (cucurbitaceous) of the gourd variety like gourd, bitter
gourd, bottle gourd, sponge gourd. Also vegetables like egg plant and ladies finger are
grown in quantity in this season. Vegetable cultivated during this season are primarily by
big farmers in their mechanised farm. Small and marginal farmers mostly cultivate their
subsistence paddy on their land in Kharif season. Ground water level of low lying regions of
plain, along the banks of the river rises during monsoon so paddy cultivation is the main
option.
Water stands out on the land. The roots of the crops will decay due to water logging in their
roots. Then paddy can be grown in the land. Paddy can be grown well in standing water.
-Nandkumar Soankar (Farmer)
Coaliari, Dhamtari
Land holding 5 acres along river bed
Tomato cultivation gets started from late monsoon for early harvest to get higher price
catch in the market in the beginning of tomato season.
b. Winter season: This season is from middle of October to February, just after monsoon
harvest. Cultivation gets depended on irrigation. Since the moisture content of the soil is
high just after monsoon vegetable cultivation is the best during this season. All types of
vegetables cabbage, cauliflower, Chilli, Egg plant, radish, coriander, cow peas, leafy
vegetables etc are grown by farmers in Chhattisgarh.
Vegetable cultivation in past few
years has increased through out Chhattisgarh. Although specifically it can not be mentioned
why there is an upward trend but certainly there has been a promotion/push for vegetable
cultivation under National Horticulture Mission.
c. Summer season: This season is from spring to summer, i.e., from February to May. This
cultivation depends completely on under ground water and irrigation system. Land with
irrigation facility is the areas where cultivation is possible. Winter crop continues in many
cases and even newly winter crops are sown.
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Figure 4: A vegetable farm, Raigarh
III.i.d.ii
Land size
It has been observed that vegetation varies on land size. More big farmers have year round
vegetable cultivation as they have highly mechanized farming. High value crops and crops
with difficult package of practice/ on-farm management are cultivated by big farmers while
crops that can be easily managed and requires less inputs and management and skills are
Onion, garlic, palang, radish, etc are small crops produced by Patels because they are produced
in 1-2 months. Patels all over Mana and Raipur are small farmers.
-Bharat lal Sharma (Farmer)
Dhaneli gaon, Mana raipur
Land holding 7 acres along river bed
cropped by marginal and small farmers. Green leafy vegetables, chilli, coriander are grown.
Interesting to note was green leafy vegetables like spinach, chech bhaji and khatta bhaji or
even to some extent coriander is associated with marginal and small farmers. As it was
observed from ground big farmers have much better knowledge on package of practice.
They are in close association with horticulture department, Krishi Vigyan Kendra and receive
training, advice and suggestions for improvement of their management
III.i.d.iii
Irrigation
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The State has five river basins- Ganga, Brahamani, Narmada, mahanadi and Godavari.
area under irrigation in the state as off March 2009 is 26%, 13.34 lakh hectare. Canal
irrigation covers close to 70% land while bore well serves 20%of irrigated land. Irrigation
coverage has a wide variability with best in Raipur district at 22% irrigated land and least in
Narayanpur with almost no irrigation system. From the chart below as it can be understood
there is no strict relation between Irrigation coverage and vegetable production in districts.
As it can be understood ground water is over used in many districts while under used in
many places and is not universally spread out. Vegetable production in districts like Sarguja
Bilaspur, Durg , Jagdalpur, Koriya are high but irrigation coverage hasnt been the best.
Potential of vegetable cultivation can be further improved if irrigation is improved in these
areas specially in Sarguja.
Figure 5: Relation between yield and Irrigation

9
25
8
20
7
6
15
10
3
2
P e rc e n t
P e rc e n t
1
0
R a ip u r
D u rg
J a n jg ir
B ila s p u r
D h a m ta ri
M ahasm und
R a jn a n d g a o n
R a ig a rh
k a b ird h a m
S a rg u ja
kanker
ja s h p u r
K o b ra
ja g a d a lp u r
K o riy a
B ija p u r
D a n te w a ra
N a ra y a n p u r
% of total Yield
% of land irrigated
Canal network is low in the state and concentrated to few districts compared to other
irrigation sources but certainly its coverage is the maximum. It can be noted from data
available as well also on field usage of micro irrigation scheme like well, bore, shallow,
dripper, sprinkler is increasing. In last four years additional area of 51680 ha has been
brought under irrigation through drilling of 1134 tube wells and 25204 ha has been covered
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under micro-irrigation system. In Chhattisgarh state exploitation of water resources so far

has been considered to be low with potential of expansion. So there is a potential of optimal
utilisation of ground water and surface water to increase agricultural production.
At the same time it must be noted that 8 blocks of the total 146 blocks in the state have
been categorized as Semi-critical due to its present level of ground water exploitation and
even it has been suggested to take cautious approach while financing ground water
structures.
Figure 6: Irrigation source and area coverage
80.0
68.5
70.0
60.0
51.9
50.0
35.4
40.0
30.0
18.9
20.0
12.3
10.0
4.2
2.3
0.4
0.0
Canal
Bore well
Well
% of Area covered
III.i.d.iv
Although
Labour
cultivation
have
become
process of cultivation. Chhattisgarh state is

facing shortage of labour agriculture. This is
can be said as an impact of various subsidy
of
State
government.
% of total irrigation source
As said by one of the farmers in Raigarh-
mechanised still labour is required for every
schemes
Tank
The
rice
distribution for BPL families at Rs.2 per kilo

provided food security to the BPL families
along with availability of work under NREGS
schemes is pulling labourers towards 100
34
In recent times we are facing huge labour

crisis. Labourers dont wish to come for
agricultural work. Why will they come? They
are getting rice at Rs2 per kilo. It gives the
family some food security. They have job card
and gets work at higher rate than agricultural
wage. What ever they earn they use it up for
food and alcohol. They are not ready to do
hard work now. It is becoming hard for big
farmers who have to hire labour. Small
farmers who depend on their own labour can
easily do their cultivation
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days work and not towards agriculture wage where wage rate is far below. This is creating
shortage in availability of labour. It is a good trend in vegetables cultivation in Chhattisgarh
is women are used more in vegetable cultivation. Women work as daily wage labour mostly
during weeding, harvesting, cleaning and packing if it is required so. They are paid quite
less than men per day wages.
This problem was highlighted in many places and many times in different districts by
farmers.
III.i.d.v
Finance*
Farmers depend mostly on individual

capital for vegetable cultivation. Formal
sources of credit availability are very
less. As observed individual farmers
either use their savings or take credit
from input markets, like purchase inputs
like seeds, fertiliser, and pesticides on
In the villages we surveyed hardly SHG presence

could be seen and even SHGs were present they are
non-functional. Women participation in SHG is low
and if the SHGs have savings and credit function is
mostly dominated by their male counter parts.
Decision on loan amount, use is determined by the
male members.
credit from dealers and repay them after

harvest. This is highly exploitative as
the interest of credit is hidden within the price of the input. Marginal and small farmers are
facing this as they do not have access to formal credits.
The banking sector in the state of Chattisgarh comprises 63 banks in total including commercial banks,
Regional rural banks and cooperative banks. The total numbers of bank branches in the state are 1500.
As on march 2009 percent of credit outflow to agricultural sector, i.e., agricultural advances from
different agencies have been just 20 percent of total advance. No secondary or primary data is available
as to what percent of these is for vegetable cultivation, but certainly it is know that most of the loan
from formal financial institutions goes for farm mechanization which is going for vegetable farms also,
then to animal husbandry, followed by water resources and land management activities. Hence it can be
understood what percent of the total agricultural loan for vegetable cultivation directly. It can be
estimated that around 30-40% of the total agricultural loan goes for vegetable cultivation.
*
All banking data for this section has been referred from NABARD SIP 2010-11, Chattisgarh State
35
Submitted to CGSIRD
Conducted by HVR
Cooperative banks lead in giving agricultural credits to farmers, as on 31st march 2009
72.19% of agricultural advances of total advances have been given by Cooperative banks
followed by Regional Rural Banks with advances of 47.7%. Commercial banks lag far behind
in the competition with only 15.5% loan.
Even presence of informal credit delivery to the requirement is low. Till 2008-09 there are
109541 SHGs formed and of that little more than half have got credit linkage with
banks.(SIP of NABARD, 2010-11) Percent of SHG refinanced is even lower and stands less
than 15%.
There are 1395 farmers club in the state for acting as platform to organise farmers and
negotiate with formal system of farming.
The above finance situation for agricultural sector highlights, since cooperative banks are at
the door step of the farmers they have much more access to it. But since its initiation
cooperatives role in paddy and other grainsa have been more it hasnt been visualised as
major finance source by farmers for vegetable cultivation. Even field level observation
revealed that ground level employees of cooperatives havent envisaged their role in
vegetable cultivation. Cooperative banks take up a role in providing finance/credit for
vegetable farming.
III.i.d.vi
Market-input and output

Vegetable does not have a regulated
As observed there is less regulation on price,

quality of these products even from government
side. Expired products are sold out to ignorant and
illiterate farmers at lower costs. Marginal and
Small farmers who purchase inputs from them on
credit have no negotiation power for price and
quality.
input
or
vegetable
output
market.
Input
like
seeds,
fertilisers,
pesticides, and even machineries are

mostly purchased from open market.
There are private dealers within the
villages
who
distribute
different companies.
36
for
products
of
III.i.d.vii
Submitted to CGSIRD
Conducted by HVR
Technology
Technology has swiped in Chhattisgarh district but only to big farmers. Mechanisation
possibility is strongly influenced by farm size, cost of labour, irrigation facility and per unit
cost of machines and energy. Use of improved farm machinery like tractors, power tillers,
sprayers, dusters, irrigation pumps, harvesters, threshers augment cropping intensity and
improve productivity but this are beyond reach of marginal and small farmers with 0.75 to 1
ha average land holding. This does not make production profitable for them. Government of
India has increased its subsidy amount under promotion of farm mechanisation scheme.
III.i.d.viii Economics- production, productivity and profitability

Vegetable cultivation in the state has grown in the last five years. Production of vegetables
and area under cultivation has doubled in last five years in the state, but to note is this
productivity has decreased from the initial growth but has gone almost stable is last three
years. Chart below shows the trend of vegetable production of the state.
350000
14.0
300000
12.0
250000
10.0
200000
8.0
150000
6.0
100000
4.0
50000
2.0
Productivity (MT/Hect)
Area (Hectare)
Figure 7: Trend in Vegetable cultivation for the last 5 years
0.0
2004-2005
2005-2006
200620-07
2007-2008
Area (in hect)

Source: Department of Horticulture. Government of Chattisgarh
37
2008-2009
Productivity (MT/Hect)
Submitted to CGSIRD
Conducted by HVR
Farmers on their trial and error basis and based on profitability has changed the vegetables
cultivated. The chart below shows a clear change in vegetables production. Production of all
types of vegetables has increased except for few like cowpea, green pea, Kaddu and
colocassia. Even new vegetables have started to be grown like beans, arbi, radish and green
leafy vegetables.
Figure 8: Change in vegetables produced in last five years

25
20
15
10
2004-05
2008-09
As we also found from the preference matrix of farmers and markets in different regions
cauliflower, cabbage, chilli, beans, are coming up as preference. As noted these vegetables
38
Submitted to CGSIRD
Conducted by HVR
are mostly grown by marginal and small farmers, which show that marginal and small
farmers are coming up into vegetable cultivation.
Preference matrix of farmers and the production of vegetables reflect a close similarity.
Preference of vegetables like cabbage, cauliflower, bitter gourd, tomato, potato is reflected
with the increase in production in the last five years. These vegetables are profitable and
also get yield for longer period of time usually 3 months on average. So income generated
is more. Also it was learnt from field, these crops are more pest resistant till date so
management of these crops are easier.
39
Summer
Winter
Rainy
Season
Egg plant
Radish
Local chili
Coriander
Gram
Paddy
khatta bhaji
Chech bhaji,/
Sim
Spinach
Cabbage
Coriander
Local chili
Radish
Egg plant
Cabbage
Cauliflower
Gram
Paddy
Onion
khatta bhaji
Chech bhaji,
Coriander
Bitter Gourd
Cabbage
Cauliflower
Cauliflower
Paddy
Small
Paddy
Marginal
Plain
Cabbage
Cauliflower
Egg plant
Cowpea
Cauliflow
Chili
Cabbage
Cauliflowe
Coriander
er
Cabbage
Paddy
Marginal
Tomato
Chili
Coriander
er
Cauliflow
Cabbage
Ginger
Coriander
Onion
Paddy
Small
Plateau
Chili
Coriander
er
Cauliflow
Cabbage
Cauliflowe
Cabbage
Tomato
Gourd
Paddy
40
Cowpeas
Cabbage
Cauliflower
Potato
Cucumber
Cowpea
Cauliflower
Cabbage
Cowpea
Paddy
Marginal
Cowpea
Big
Conducted by HVR
Table 4: Season wise preference of vegetables in different terrain
Wheat
Egg plant
finger
Ladies
Hybrid chili
Gourd
Cauliflower
Cabbage
Tomato
Bitter Gourd
Paddy
Chachera
Sim
Cowpea
Bitter gourd
Big
Submitted to CGSIRD
Paddy
Chili
Egg plant
Cow pea
Cabbage
Cauliflowe
Potato
Chili
Cowpea
Paddy
Small
Hill
Egg plant
chili
Hybrid
Cucumber
peas
Green
finger
Ladies
Cauliflowe
Cabbage
Tomato
Cabbage
Cauliflowe
Egg plant
Potato
Paddy
Local chili
Cowpea
Big
Submitted to CGSIRD
Conducted by HVR
III.ii Economics of scale

Using participatory method a preference matrix of vegetables was formulated by farmers for
the purpose of calculating the cost benefit analysis. Six most preferred vegetables for
cultivation across farmers of different land holding and topography are-
7.
Cabbage and cauliflower
8.
Bitter gourd
9.
Tomato
10.
Egg plant
11.
Cow pea
12.
Local chilli
To
calculate
the
economics of top four

preferred
i.e.,
vegetables,
Cabbage
and
cauliflower, bitter gourd,

tomato and egg plants
cost benefit analysis has
been
done.
The
cost
benefit ratios are given

below.
Figure 9: Participatory preference matrix in progress; Magarlodh, Dhamtari

Vegetable
Cost-benefit ratio
Cabbage/cauliflower
1:3
Bitter gourd
1:2.7
Egg plant
1:2.5
Tomato
1:2
Table 5: Cost Benefit ration of four most preferred vegetables
41
Submitted to CGSIRD
Conducted by HVR
Two tables below show the cost break up of two vegetables that are mostly preferred now.
As it can be seen, in both the cases the major portion of the cost is on seed followed by
fertiliser and labour, varying little depending on the incidence of pest manifestation. Details
of cost, production and cost benefit analysis are given in annexure.
Input
Total Cost
Percent
Seed
12000
65.3
Ploughing
300
1.6
Fertilizer and pesticide
2570
14.0
Labour
2960
16.1
Irrigation (electricity)
200
1.1
Transport
360
2.0
Total Cost
18390
Table 6: Cost break up of Cauliflower Cultivation on a acre of land

Input
Total Cost
Percent
Seed
5625
59.1
Ploughing
180
1.9
Fertilizer and pesticide
2080
21.8
Labour
1340
14.1
Irrigation
200
2.1
Transport
100
1.0
Total Cost
9525
Table 7: Cost break up of Tomato Cultivation on a acre of land
Reliability of two most exportable vegetables of the state and

its preference
III.ii.a
Primary data from farmers as well from market highlighted tomato and hybrid chilli are the two
exported vegetables at present from the state. These two vegetables are generating huge profits to all
players in value chain. Economies (Cost benefit analysis) fro tomoto could be done as data was available
and it has been showed above. Economies for hybrid chilli could not be done. But primary information
42
Submitted to CGSIRD
Conducted by HVR
shows that hybrid chilli is getting into the preference matrix of farmers quite fast because of its market
outside Chattisgarh.
Tomato production in the state has increased almost one and half times in last 5 years in the state from
293393 tons to 420363 tons last year, but at the same time productivity of tomato has increased by 1.5.
Tomato harvest period in the state is post harvest from around August-September and reaching its peak
period around October-November. During this phase tomato produced within the State almost meets
up with the domestic market demand of the state and very little amount need to be imported to the
state from neighbouring district. Import again starts to increase and during May-June every year which
is the off season in Chattisgarh. Recently tomatos produced in the state are also being exported to
neighbouring states during peak period, i.e., October-November. Individual whole sellers who have
market linkage easily operate the market.
Two types of chilli are produced in the State, local and hybrid. As learnt from farmers on ground local
chilli cultivation is fast decreasing and getting replaced by hybrid chilli. This variety has high export value
and is exported to Delhi, Rajasthan, and neighbouring states from CG.. chilli is harvested in winter during
December-January.
Demand of both tomato and Chilli are there in the state and so inflow and outflow of both the
vegetables happen in the state during off season and peak season respectively. Since both the crops are
profitable off season cultivation of these varieties have to done in a planned approached. For peak
season export better variety of hybrid tomato can be cultivated to increase production. High quality
tomato will fetch better price too. So lot is depended on value addition and planned cultivation. So cold
storage is also required with proper market channels created. An integrated market model like that of
West Bengal can be adopted here too,
III.ii.b
Economy of Scale:
Economy of scale is a valuable concept for analyzing the competitive strength of producers
to compete in the market and make superior profit. Generally because of the large
operation, a larger producer can spread its fixed cost across greater number of units as
more are produced thus reduces the unit cost of each product. In the vegetable sector, the
43
Submitted to CGSIRD
Conducted by HVR
large farmers2 show substantial economy of scale of their farm operation, which the small
producers cant achieve as they are moving into mechanized farming. As a result the small
farmers lose competitive advantage. The large farmers can substantially reduce the costs
over a period of time with less labour cost and faster work increasing yield cropping
intensity.
As pointed out by a big farmer in RaipurWe use machine in every thing now- ploughing, sowing, harvesting, spreading fertilizer and pesticides.
This is one time cost, so over the years the cost of production reduces. Using machine works can be done
faster. Where we would have required 10 days to do a job with 5 labours we can do it in one day using the
machines. So isnt that an advantage?!
III.ii.c
Competition between big and small farmers
Vegetable cultivation is a high risk taking activity with huge investment and high return
provided all conditions are favourable. In Chattisgarh the biggest challenge for vegetable
cultivation is water. Rainfall is for four months of year but not regular. Often there are
droughts faced by the state, so vegetable cultivation depends mostly on irrigation. Small
and marginal farmers in most of the cases still do not have access to irrigation facilities.
There is no secondary information available to show with facts the difference between small,
marginal and big farmers but from the primary qualitative data collected we could draw a
line of difference between the type and trends in vegetable production.
Small and marginal farmers cultivate vegetables in post monsoon period for 6 months of the
year when they can use the stored surface rain water. While big farmers with help of
assured irrigation systems cultivate year round. Small farmers have irrigation mostly in
In context of Chattisgarh large farmers means with land holding of more than 5 acres, small are with land holding
of 2.5 acre to 5 acres and marginal are with less than 2.5 acres of land holding.
44
Submitted to CGSIRD
Conducted by HVR
form of bore well and shallow while big farmers are now using sprinkler and dripper. Small
and big farmers are cultivating during peak period they earn less profit as prices go down
with huge supply in market. Small and marginal farmers are not able to catch the off season
market. It was quite interesting to note that from our study area many farmers have
received irrigation equipments like sprinkler, drip channels, and pump sets from RKVY
schemes. But it was interesting to observe these schemes are mostly benefiting to farmers
who have some social and political networks, who have information of the schemes and
assistance available under different schemes. Its worth to mention in this connection as we
found out information of schemes are percolating very less to the ground level and specially
to small and marginal farmers.
As we found from our surveys and discussion with farmers, small farmers with less financial
capacity, cultivating in small plots prefers less risky vegetables which have small gestation
period, low investment and less on-field and off-field management like green leafy
vegetables, coriander, local chilli, cowpea. Seeing the profit and market trend few small and
marginal farmers have started taking risk and cultivating cauliflower and cabbage off late.
But since they dont have better technology and their knowledge and learning source is
limited to input dealers they run huge risk of crop failure. This was learnt from farmers
during group discussion in Dhamtari, Kanker, Raigarh, Sarguja that they bought cauliflower
seeds learning from their fellow farmers who had cultivated last year but none of the seeds
germinated and they incurred huge loss. Their investment was completely lost and they
were into heavy debts as they cultivate crops on credit. Some could manage to plant crops
again on that land or another plot available but most could not.
45
Submitted to CGSIRD
Conducted by HVR
IV VALUE CHAIN SUB

SUB SECTOR MAP
IV.i Back ward and forward linkages
The sub-sector map shows how the products flow through the system and shows the full
range of activities involved in the production of vegetables from input procurement to
produced output and marketing it. The chain of forward and backward linkage transforms
the product and makes it usable for final consumer. The value chain of vegetable below has
been categorised into three segments- input, production process and market. In the three
main segments of chain there are various actors and who play varied role in the transition
of the product before it is finally consumed.
The vegetable market in the state shows
similar picture so it has been put into one frame work.
IV.i.a
Input marketa. Seed fertiliser, pesticides- In production of vegetable the backward linkage
is associated with the procurement of inputs- seeds, fertilisers, pesticides,
labour, capital, water, etc. usually as practiced by most cultivators is that
they procure seed, fertiliser and pesticide inputs from village dealer who in
turn procures from whole sellers within the block, districts or state. Price of
these inputs is fixed by the companies and is not determined by demand or
supply. Many farmers who are member of cooperatives take fertiliser from
cooperatives for paddy cultivation which they use for vegetable too.
Figure 10: FGD in progress with, Coaliari, Dhamtari
b. Labour market: Labour has
no formal market and labour is
available
within
the
village.
Labour wages are fixed on the

basis of demand and supply
but still big farmers have a
much higher control on prices.
Labour working in the farms of
46
Submitted to CGSIRD
Conducted by HVR
big farmers has a much exploitative rates.
Women wage rates vary from Rs.30 Rs.40 a day while wage rate of men varies from
Rs.70-Rs.80 per day.
c. Finance: It again has different forms- formal or informal sources. Individuals
use their own savings or take credit from banks, cooperatives, farmers club
at interest rate of 6-8% p.a. Informal sources of credit like borrowing from
village money lenders or credits from shops interest rate is high and ranges
over 36% p.a.
As observed and learned from farmers, NGOs, line department officials presence of
village money lenders have reduced in the rural villages of Chhattisgarh.
Production of vegetables
IV.i.b
Production and transformation of the seed involves the

process
of
preparation
land
and
preparation,
sowing.
seed
There
treatment,
after
it
only
seedling
spraying
fertilisers, pesticides and weeding at regular intervals. After

harvest its processing, sorting, packaging and marketing it to
the different markets- village market, block mandi, district
mandi or exporting to outer states. The lowest quality and
There is no cold storage in the

state
for
perishable
vegetables.
Perishable
vegetables can not be stored
and there is no demand for
vegetables stored in cold
storage. People want fresh
vegetables.
smaller qualities are taken to the village market where least

price can be quoted and demand is also low. Graded
produced are send to market through own transport like cycles, or even in public transport
like buses and autos. Cost of transport varies from Rs.10 per 30-35 kg to 20 per 30-35 kg
depending on distance of market. Depending on volume fo yield per day traders/middle men
in between send their vehicles or farmers come together to hire vehicles (minidoor, Ace
800) and send them at the block or district market depending on district. Whole sellers buy
the products and the middle men/trader in between gets 8-10% commission on sales.
Farmers get 8-10% less payment from the selling price. Price of product varies on the
quality, processed products and demand supply. More farmers are now trying to control
their production cycle so that output is early when produce is less and prices will be higher,
i.e., going for off season production. Prices of vegetables go down below production cost
47
Submitted to CGSIRD
Conducted by HVR
during peak season. Farmers are forced to sell at lower prices because vegetables can not
be stored and there will be wastage.
IV.i.c
Marketing:
Vegetables produced within state are consumed within the state. Recently in last three four
years produce during season are getting exported as supply in market is exceeding local
demand. Vegetables like tomato, coriander, cabbage are exported to Delhi, Maharashtra,
Orissa, and Bangalore. During off seasons vegetables are imported to the state to meet
State demand. Vegetables are brought in from Orissa, Bangalore, Maharashtra, Bengal, etc.
Although cultivation of off season vegetables have started in the state but its far below than
the demand so it has to be exported. This is only possible by big farmers who have
technology back up of irrigation. This creation of market channel or forward linkage has
been solely based on market demand and supply. No policy or channels has been
established yet for market by Government. There is no government storage facility or
processing unit in the state.
IV.i.c.i
Cold Storage
Cold storage for vegetable produced is not in the state except one private owned near
Raipur for potatoes. There are many cold storages in the state in different districts and they
are used only for ber, mahua, i.e., non timber forest produce. The quantity of production so
far in the state in less than the demand, so fresh vegetables get marketed within a day of
harvest and hence so far there has been no need for storing the vegetables. But with
increase in production slowly need would arise in the state for a cold storage.
But it is also important to notice the market call for cold storage. Traders in market feel,
which is also true from the customers point of, view that customer want fresh vegetables
and not stored one. Also perishable vegetables like tomato, brinjal, ladies finger, brought
out from cold storage has to be disposed off within few hours other wise they will start
decomposing and loose its market value. Only vegetables which are not fast perishable can
only be stored.
Cold storage usage in West Bengal for vegetables is also very low and mostly for potatoes,
but in West Bengal integrated vegetable and fruit market is process of being created as
48
Submitted to CGSIRD
Conducted by HVR
model projects in three zones of Bengal, North, Central and South of Bengal. Within the
integrated market model cold storage plays a significant role. The cold storage will be
categorized on period of storage of different types of vegetables and fruits like
Short period of 10- 20 days for products like tomato, cabbage, cauliflower etc.
Medium storage for a period of 2 months for products like lemon, chilies, peas,
oranges, grapes, pears etc.
Long period of 2-3 months for products like potato, carrot, pumpkin etc.
Very Long period of 4 months for products like apple
But the cold storage units are not in isolation, value addition of products from this point
forward need to be done mainly for that problem mentioned above. Grading and packing of
the fresh vegetables to keep them fresh needs to be ensured from this point forward so
attached to the cold storage needs to be a ware house temperature maintained so that the
vegetables can be air packed for its longevity for few more days.
The model and its budget are attached in annexure.
IV.i.c.ii
Processing Unit
No defined and prominent food processing sector is present on the vegetable sector in
Chhattisgarh. Few tomato processing units are present in Durg district, which are
considered as small cottage industries.
We have all the pressures. We have to safe guard our farmers so that they dont get price below their
cost. We purchase it from them at market price and when we realize there in no market demand for
selling them we have to immediately contact whole sellers out the state and export so that we dont incur
maximum loss. In this process we have to incur loss many times as there is wastage. We dont let it fall on
the farmers.
-
Whole seller
Raipur market
49
Labour
Cooperative for
credit in vegetable
cultivation
Retailer of seed,
fertilizer, pesticide
Whole seller of
seed, fertilizer,
pesticide

Input market
50
Packing in
sacks
Harvesting
Weeding
Fertilizing,
pesticide spraying
at regular intervals
Watering
Sowing of seeds
Seed germinated
Land preparation,
seed bed preparation
Production
Submitted
to CGSIRD
Local Market/Weekly
Village Haat
Middle man
Cleaning, drying,
dressing (removing
leaves)
Conducted by HVR
Vegetable
vendors
Import from
other states
Figure 11: Subsector map

Export to other
Block Mandi
states
District Mandi
Marketing
Submitted to CGSIRD
Conducted by HVR
IV.ii Actors
In the different forward and back ward linkage stages many actors play their role.
The
different actors and their role are1. Whole seller of inputs: the whole seller has huge volume of transactions. They have
several retailers or dealers associated with them who purchase from these shops and sell it
to farmers
2. Retail seller of seeds, fertilisers and pesticides or the village dealers: Farmers
purchase inputs from dealers. They are the first contact for farmers in most cases in case of
pest manifestation and consult to get pesticides for their plants.
3. Producers: they are the farmers who cultivate vegetable directly.
4. Middle men: they are the persons who sell produce for the farmers in the block market or
district market and take a commission from farmers on their sell. They help in bridging the
distance from remote villages where vegetables are produced to the whole sell market.
From the producers to block market as identified there are usually one middle man but in
some cases there are even two- one from remote villages to village market and one from
there on to block market. From block market again theres a layer of middle man to district
to link the block and district level.
5. Whole seller in out put market: purchase bulk vegetables in block or district markets and
sell it to retailers or whole sellers of the other districts or states of India.
IV.iii Value addition

Value addition in vegetable cultivation as per present practice happens at the down stream
end of the value chain. Value addition occurs post harvest with the grading, sorting of
different qualities of vegetables based on size, compactness, dressed (leaves, stem pruned),
etc. different prices are set for different varieties of same vegetables.
Price of different
grades of same vegetable varies from Rs5-10 per kilogram.

At present, there are a large number of intermediaries in this trade between the producer
and consumer which has resulted in a wide gap in the producer and consumer price of these
commodities which needs to be reduced to enable farmers receive remunerative prices for
their produce and boost their production and consumption in the country. Retail price of
vegetables are more than double on average than the selling price of producers. At each
transfer there a rise of price by 10-20%.
51
Distance to input supplier

short around 5 kms
Sale at homestead/
village haat
Household
consumption
Farm repayment
Farmer/production
Seed /fertilizer
5% of total produce
consumed
Sales
Small
Trader
52
Buyers
household
Export out of state
No storage. Post-harvest losses during handling and transportation
Distance to urban and local market will be

around 10 kms
Retailer to urban
and local market
Block/District
Market
Produce goes to the market unchanged; only sorted

out as per quality
Conducted by HVR
Distance to market will be

around 10-30 kms
Buyers
household
Submitted to CGSIRD
Figure 12: Diagrammatic view of different layers of value edition
Input Supplier
15-20% goes to repay

loan
Submitted to CGSIRD
Conducted by HVR
V SERVICE MARKET
The subsector study identified a number of services used by the different producers and the
status of these services as well as related sales by the actors of the value chain. A number
of large farmers offer their facilities (tractors, sprayers, water pumps) to the small
producers in exchange of price. These services become available primarily because of the
close clustered and intense internal harmony of the producers.
The following services are provided in the following broad areas:
1.
Pre-cultivation
2.
Cultivation Services
3.
Post Harvesting and Marketing Services
V.i Pre-Cultivation Services

Knowledge and Information about New Seed Varieties and their Cultivation Techniques: This
is an extremely critical area for increasing farmers productivity and profitability. However,
adequate services are not available. The line
department is supposedly the primary suppliers
of this knowledge. However a huge gap was
observed.
The
information
dissemination
process about new techniques, benefits or

different horticulture schemes is not reaching
farmers. Gram Sevak, agriculture extension
officers role in the vegetable cultivation has
not been significant in knowledge or technology
transfer. In most cases farmers dont receive
any service of these people, even to some
extent farmers have mentioned of not knowing
Gram Sevak comes here twice, before both the

season and takes in name for various schemes
like fertilizer distribution. But when we receive
the services it is of no use for that season, it
more than months later when its time for
harvest. Services are not timely received.
They also gave subsidized water pumps to some
of us here. They made us sign on a paper of
Rs20000 for pump set. But the pump set will be
worth Rs10000. We also go to the market and
know the prices of products. They say they can
not give us the money so that we buy it our self
and say that is what coming from office.
any Gram Sevak. Availability of such services

reaches only a fraction of farmers who are
near the urban or semi-urban areas. The
farmers are not satisfied with the services.
53
- FGD finding in Magarlodh block, District

Dhamtari
Submitted to CGSIRD
Conducted by HVR
Also about availability of different horticulture schemes of center and state are supposed to
be disseminated in Gram Sabha meeting of Panchayat. It was found out that knowledge of
Panchayat members it is very low or dissemination is limited within the peer group of
Panchayat members.
The majority of farmers get this information through embedded services from the seed
traders. However the quality of information is poor and the remote farmers get very little
access to this information due to lack of knowledge by the local dealers.
Very few NGOs such as PRADAN, IBRAD, CARDS, etc. in association with NABARD are
actively working on farmers capacity building on farm productivity through knowledge and
information dissemination to the farmers.
V.ii Cultivation services

Knowledge and Information about Pesticide Dose and Pest Control: The absence of source of
appropriate knowledge and information about pest control has also been reported as one of
the critical problems faced by the farmers. Line department is supposedly the primary
supplier of this knowledge; however, due to limited resources the dissemination process is
not at all functional. The majority of the farmers get this information and is depended for
these information on embedded services, i.e., from the pesticide traders. Again the question
raises about the quality of information is poor and the remote farmers get very little access
to this information due to lack of knowledge on the part of the local dealers. It was reported
that about 20 % 40% of the products gets completely damaged/wasted due to nonavailability of such services. Even in many cases this year there has been complete
destruction of crop in nursery due to unknown reason.
Soil Testing: The soil testing facilities were not learnt from in any of the selected district; as
a result, the farmers either use an excessive amount of fertilizer or inappropriate fertilizers.
This significantly reduces yield and productivity of the farmers.
Tractor for Cultivation: Vegetable cultivation is done by both powered equipment and
manually (animal draft power). The use of tractors is much higher in most of the areas and
particularly in terrain. Small farmers use animal draft power to cultivate because of
affordability but use of power tiller is increasing. Tractor rent is about Rs 400 per hour. The
54
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Conducted by HVR
price generally increases during the cultivation season due to added demand and short
supply.
Irrigation Pumps: This particular service is required by majority of marginal and small
farmers who are beyond the coverage of irrigation canals or are situated far away from
rivers or streams. Irrigation pumps are also rented on hourly basis and the rate varies.
V.iii Post-Harvesting Services

Transportation: There are small vehicles owned by middle men, villagers or farmers who
provide transportation services from rural areas to market. The cost of transportation
becomes little higher in these cases than through public transport. But as the services are
provided door step people access them.
Cold Storage: Cold storage facilities are seen as one of the critical factor in the overall
profitability of vegetable production and trading. The excess supply of vegetables during the
peak season has to be forced sold at lower prices even lower than production cost. There
are no cold storage of vegetables so that it can be stored at least even for few days so that
and when the market price increases the products can be sold at the relatively higher price
55
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VI GENDER AND THE SUB SECTOR

Role of women in whole vegetable sector was limited to labour at low and exploitative rates.
Women labour is used during production as agricultural labours involved in weeding and
harvesting. Also women can be seen in market as labourers for sorting vegetables or
packing them. Women wage rate is as low as Rs 40 per day.
Women give their labour in household vegetable production too, where they do not have
role in decision making or choice of vegetables. SHG for women also acts as credit source
but no control over the capital.
VII SUB SECTOR CONSTRAINTS ANALYSIS

The Constraints and Opportunities were expressed by the various actors of the Value Chain
(input suppliers, producers, traders, wholesales, retailers) Key Informants (related
government officials, NGOs, practitioners
The constraints and opportunities were categorized under the following six headings:
1.
Technology/Product Development
2.
Input Supply
3.
Finance
4.
Operating Environment/Infrastructure
5.
Trade Associations
6.
Policies
The following matrix shows an illustrative view of the constraints for the subsector-
56
plant
etc.,)
low
management,
spacing,
resulting
attractive
to
profit
poor
yield
and
less
its protection results in
vegetable disease and
Lack of knowledge of
farmers
less
making
production
thus
vegetable
quality
productivity and poor
in
weed
management,
crop
water
testing,
rotation,
(soil
practices
cultivation
knowledge
improved
of
about
Lack
Constraints
of
activities
Poor
57
extension
of
service
knowledge
input suppliers
Poor
providers
Lack
of
of
extension
capacity
department
the
Limited
technology.
development
continual
Increases
Reduces
Reduces yield
yield
production
cost
constraints
Features
Submitted to CGSIRD
Lack of effort towards
Cause
of
of
farmers
and
specially
farmers
marginal
small
but
All
mostly
Small farmers
and
is/are
Marginal
affected
Who
for
improved
building
of
at
ground
level
controls/management
pest
farmers on diseases,
capacity
Regular training and
soil testing
Service provisions on
cultivation methods
on
capacity development
Provisions
Interventions
Potential
Conducted by HVR
of
Horticulture
workers
Extension
suppliers
Input
of
Farmers club
NGO
department
Horticulture
Services
Provider
Existing
(tractor,
technology
rental
increases
labor
thus
and
yield consequently per
seed) results in poor
(particularly
inputs
quality
to
access
Lack of availability and
producers investment
reduces profit of the
production
increasing the cost of
manual
fees or requires more
etc.)
machine,
the
spray
weeder,
irrigation equipments,
cultivation
to
access
Lack of availability and
not
of
the
financial
is
58
Input suppliers selling
quality seed
farmers to purchase
capacity
of
service
known
of
Demand and supply
investment
production
Increases cost of
in debt
Farmers
farmers
getting
Financial loss of
Submitted to CGSIRD
Requires substantial
Lack
farmers
marginal
Small
farmers
marginal
Small
and
and
power
at
Farmer
in
from
subsidized
and
sprayer
government schemes
rates
club
SHGs
weeders,
tiller, pump machines,
Distributing
SHG
through farmers club,
on
input
suppliers by random
Control
expiry dates
on testing seeds and
Awareness to farmers
Conducted by HVR
farmers
Large
NGOs
Kendras
Krishi Vigyan
suppliers
Input
department
of
force
access
the
to
lower
to
to
area
uncultivated
Vast
interest.
59
still
unexploitative rate of
cultivation at low ,
farmers for vegetable
credit
functional
provide
non
land
irrigation in
of
SHGs, farmers club
remaining
of
at
accessibility
cooperatives
non
most of the cultivable
Lack
price
traders
products in advance to
producers to sell their
finance
Lack
profitable
Low awareness and
vegetable
making
less
farmers
dramatically
increase
production
expired pesticides to
increasing
production
Cost
rain water
Depending
profitability
Reduces
Submitted to CGSIRD
unit production costs
of
on
in
and
undulating
terrain
to
the whole due
India in low on
central part of
resources
Irrigation
farmers
marginal
Small
department
Horticulture
products
checking
of
roots
reaching
the
cooperatives
service
Strengthening
SHGs
Strengthening
Conducted by HVR
grass
and
of
of
of
by
their
Cooperatives
lenders
Local money
suppliers
Input
of
policy
value
for
storage,
processing,
sector
farm
low profitability
poor productivity and
production resulting in
increasing
marginal farmers for
facilities to small and
credit
agricultural
appropriate
suitable
of
profitability
the
for
policy
Lack
reduces.
farmers
consequently
investment in this area
private
etc. resulting in poor
through
products
addition of agricultural
encouraging
Lack
representation
Poor
policy
policy
making
60
participation in policy
association
Absence of farmers
formulating structure
Poor
formulating structure
policy making
Farmers in debt
reduced
Profitability
Submitted to CGSIRD
of trade association in
Poor
is
and
farmers
marginal
Small
farmers
marginal
and
the small and
again specially
All farmers but
farmers
marginal
Small
value
through
for
agricultural
credit facilities
suitable
appropriate policy for
Provisions
processing, storage,
products
addition of agricultural
encouraging
to
adequate
policy
for
Provisions
Conducted by HVR
small
None
owners
scale private
Few
collective
to
poor
bargaining
All farmers
and
form
that
or
economy
enjoy
Provisions
scale
market
open
for
of
and
their product in the
they can bargain for
so
cluster
cooperative
to
in compelling
a lower price.
their products even at
the producers to sell
results
61
High investment cost
knowledge
Table 8: Constraints Analysis
below cost
alternative
Food
sector
processing
participation
Private
facilities for tomatoes

at
farmers
marginal
Small
small
facilities for vegetables

Sell
of
prices
cost
production
below
of
level
and marginal farmers
association
root
sufficient cold storage
Lack of local technical
of
Grass
Conducted by HVR
Lack of cold storage
guard their interest
the
awareness
knowledge
price
vegetables, even
Low
Submitted to CGSIRD
potential benefit
regarding
association results in
safe
and
farmers
functional
of
Lack
adequate,
of
Lack
sector
Private
farmers
Individual
VIII
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Conducted by HVR
COMPETITIVE ANALYSIS
Every enterprise competing in a subsector faces competition. Competition involves not only
rivalry among enterprises in the same trade group (producers, processors, etc.), but also
among other actors of the subsector as well. Competition in an industry depends on three
basic competitive forces:
4.
Threat of entry from potential entrants.
5.
Intensity of rivalry among existing competitors
6.
Pressure from substitute products
The essence of formulating competitive strategy of a subsector is to relate an enterprise to

the subsector in which it competes. The collective strength of the above-mentioned forces
determines the ultimate profit potential in the subsector, i.e., long run return on invested
capital. The goal of competitive strategy is to find a position in an industry where the
enterprises can best defend itself from these forces or can influence them in its favor.
Competition in a subsector works towards bringing down the enterprises rate of return on
invested capital. The rivalry among competing sellers in the subsector is still limited as the
sub sector is growing in the state. The market is extremely price sensitive this creates not
only entry barriers but drives the competitors away. In some of the districts where
vegetable cultivation has grown and many small and marginal farmers have joined in the
sector, farmers feels with new entry of potential entrants there is a threat as price of
vegetables will go down. The local market is already saturated so there during peak season
of vegetables so unless new scope for export to other districts, states are created there will
be sever competition with new entry of producers. Big farmers still dont feel a threat with
new entry as their market is secured due to their bargaining power. Despite a limited barrier
in some places can be observed still there is scope for new entry provided off season
cultivation is being initiated.
Rivalry among existing competitors were not felt as the market is still growing and there is
still a huge scope for growth. There is a huge gap between local demand and production so
vegetables have to be imported in to the state from neighbouring state. So depending on
each competitors strength they can expand. These market dynamics are extremely
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important for designing intervention and providing the local small producers to a wider
market.
Paddy is still considered as the first choice of farmers as it provides the subsistence to the
family. Paddy cultivation is a requirement and has to be cultivated for subsistence for food
security but along with vegetable cultivation is required for cash profit earning. Change in
cropping pattern like paddy followed by paddy can be replaced with paddy-vegetable where irrigation is
available. Farmers have to be motivated for a shift towards vegetable cultivation for profit
earning. This will also help in the cause for ground water saving.
IX GOOD PRACTICE
In Chattisgarh vegetable cultivation is still an unorganised sector with traditional practice.
From field observation very few good practices came could be observed in practice. Good
practice in this report put forwards some practices followed in different parts of the country
which can be taken up in practice in the State for better production and profitability.
IX.i Technology
Use of technology is increasing in farming. Improved technology results in improved yield

and higher productivity. Although use of hybrid seeds for production is now widely spread,
its proper management is not known by most. This results in high pest manifestation and
loss of vegetables. Also varied varieties of hybrid need to be introduced with proper care
and management so that off season cultivation is increased.
Use of technology in farming was observed with big farmers. They are using machineries
like dripper, sprayer, weeder, harvester as well improved seeds in farming which is
increasing their profitability.
Protected cultivation or the Green house farming practice for vegetable farming is not very
common in the state. Government is taking up pilots in different parts as part of National
Horticulture Mission
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E-choupal concept introduced by ITC for information and technology centre through private
public partnership can be introduced within the villages of Chattisgarh to reach ground level
producers can be helpful and profitable. E-choupal is the perfect example of the use of IT as
a strategic tool for value creation and rural empowerment. The primary objective of it is to
provide farmers all information, products and services needed to increase farm productivity
and farm gate price realization and cut transaction cost. The initiative will help develop a
trade marketing and distribution super highway for farm produce of the country and benefit
lakhs of farmers, who are currently at the mercy of the intermediaries.
IX.ii Wadi farming

As it was observed cultivation by farmers still is mostly traditional. There is huge knowledge
gap of technology use and scientific method of cultivation which will be technically sound,
economically viable, environmentally non-degrading, and socially acceptable. Concept of
homestead farming or Wadi cultivation can be a good model for increasing production as
well water management.
IX.iii Market
Food processing and agro-business has to be increased. Farmers federation needs to be
promoted for price bargaining. Several NGOs working close with poor farmers for their
livelihood enhancement has formed federation of the farmers for purchase and sell of their
products. The federation helps to increase their bargaining power and increase profitability.
IX.iv Organic farming

In recent past, indiscriminate use of fertilizers, water and chemicals in vegetable crops has
threatened the environment and ecological balance. Hence, to increase production, protect
environment and soil, increase profitability, reduce residual effects of chemicals on fresh
vegetables, it is imperative to undertake research activities on vegetable production
technology
including organic
farming,
integrated
nutrient
management,
off season
vegetable production, integrated pest management including bio-control and residual effects
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of chemicals, post harvest technology and development of export oriented varieties. Biodynamic agriculture practice has to be adopted. The process of organic farming in pilot
areas has been initiated by horticulture department but its spread needs to be fast.
X POLICY FRAMEWORK:
PRI, SHG, Government Department roles, schemes,
PPP, NGO
In the policy frame work section we would like to highlight what the National Agricultural
Policy, GoI, Chhattisgarh State Government Policy, and Rastriya Krishi Vikas Yogna (RKYV)
and National Horticulture Mission (NHM) has been highlighting or targeting and what are the
areas of gap identified. It will also try to focus on issues that can be looked upon in future
and considered for policy intervention.
Government
of
India
and
each
State
government have been taking in number of

policy
measures
agriculture.
for
National
the
development
Agriculture
of
Policy,
National Horticulture Mission (NHM) has been

formulated along with State level horticulture
policy to enhance and promote agriculture
The objective of National Horticulture

Mission is to create concentrated pockets of
horticultural activities for different crops
under the best suitable climatic conditions
in the state to achieve higher yields and per
unit more profitability by providing all
backup facilities like post harvest and
marketing back up.
cultivation within the country and the State.
National
Agriculture
policy,
National
Horticulture
Mission
and
Chhattisgarh
State
government policy all aim at the growth of Agriculture sector through an integrated
approach.
As per NHM guideline perspective and annual State Level Action Plan in consonance with
Missions goals and objectives and in close coordination with Technical Support Group, State
Agriculture Universities (SAU) and ICAR institutes and oversee its implementation has been
formulated for the first phase in Chhattisgarh with concentration on few zones and crops.
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The policy initiatives mentions of various schemes in accordance with the Mission and
objectives. Grant in aid, subsidies, model villages, pilot initiatives are framed in accordance
with the policies.
In line with this four things that we would like to highlight from our observations are-
X.i Policy, scheme rarely mentions about vegetable production
separately
The different policy on agriculture mentions of integrated agriculture practice, highlighting major food
crops like paddy, wheat, coarse cereals, pulses, oilseeds etc. even these seeds are given at hundred
percent subsidy. Vegetable is supported only through nursery, irrigation and fertilizer but in very small
proportion. Not much focus for promoting vegetable production has been given in any policy, or rather
to say not much focus has been given in formulating action plans from the policy documents. Although
agricultural policies mentions of integrated approach, vegetable cultivation is by-passed.
X.ii Role of local government, Panchayat Raj Institution:

As per the guideline of NHM the Panchayati Raj Institutions existing in the State should be
fully involved in the implementation structure. Our observations werea.
Still there is a gap in knowledge of Panchayat members about agricultural policies

and schemes. Even if Sarpanch of Panchayat were aware of the mission there is lack of
know how about the mission and its various benefits for the farmers.
b.
Lack of information and understanding regarding various schemes at PRI and hence
farmers level: Knowledge about different schemes and benefits are not reaching at the
ground level. Gram Sabha meeting which is suppose to be one of the medium through
which it should be campaigned it non-functional. Attendance in Gram Sabha is less than
1/10th of the members, information about Gram Sabha meeting dates dont reach each
household. Hence awareness on different schemes and benefits reach a selected section.
PRI is not clear of their role in dissemination of information and of schemes and leadership
in the whole process , therefore transaction of information to farmers remains question
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Also line departments are not present regularly for information sharing in Gram Sabha.
Other means of campaign like miking, leaflet distribution is also not reaching farmers
universally.
c.
Panchayats does not have much role in planning of the action plans. The plans are
still prepared in a top-down approach. Hence involvement and ownership of these action
plans in less.
d.
There is no plan of action with the Panchayat on the use of vested land and
uncultivable land specially the river beds. River bed is widely cultivated for vegetables. In
most places it is still done without any authorization. As understood river bed still has not
been considered as land and have not come into the land revenue department. But as
noticed in Dhamtari region the river is given lease by Pancayat in group to small and
marginal farmers. This can be noted as a good practice and can be followed to bring more
area under cultivation and also generate increased ownership of Panchayat in horticulture
Mission.
X.iii Self Help group

Self Help group forms an integral part of national Horticulture mission; it is the member of
District Mission committee and also a beneficiary of different schemes. But we did not
observe functional SHG and their involvement in plan of action preparing for RKVY scheme
or where there is a scope for preparing comprehensive action plan from grass root level or
disseminating benefits of schemes. It has been rear that schemes are initiated through
SHGs. SHGs are not receiving much benefit.
Non Government Organisations: there are few national, state and local NGOs working in the
state for the upliftment of the under privileged. NGOs are playing the role of intermediary
bridging the gap between the people and government machinery. They area. Generating awareness on different schemes.
b. Linking community with the line department by for availing different schemes
c. NGOs are working on capacity building of government officials as well community through
training
It was good to observe coordination with Government departments and NGO, but the
coordination needs to be increased not at block level, but at State level.
Horticulture
departments should use the community level reach of NGOs to much greater effect in
planning, implementation and even in monitoring of Government programs and schemes.
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Horticulture Department: Separating Horticulture department from Agriculture has been a

recent development. State horticulture department has a vertical organogram reaching to
the ground level. But as realized ground level staffs are not regularly reaching their
community, which is leading to a huge gap in service.
Also link inter sectoral linkage is
minimum. Coordination between line department and PRI is almost not noticeable
National level schemes under different development programs have been to benefit the
underprivileged. The action plans prepared for the State focus little for the underprivileged
directly. There are no plans to provide direct support for small and marginal farmers for
production, land water management. Even there are no schemes directly for the women.
No plan of action to promote agri-business. There should be encouragement for setting up

appropriate industries for packaging and transporting agricultural products both fresh and
processed. Chhattisgarh vegetable cultivation is still deficient of its own state needs so
export has not been highlighted but post harvest plan of action need to be strategize soon
so that small export market can be developed.
XI SWOT ANALYSIS
Strength, Weakness, Opportunities and Threat (SWOT) is a powerful tool used in developing
strategies for intervention. The tool provides a framework for understanding controllable
and non-controllable factors that the interventions should address for the entire valuechain. The critical issues of the SWOT are generally categorized into the following four broad
categories:
S - What are the subsectors internal Strengths?

W - What are the subsectors internal Weaknesses?
O - What external Opportunities might move the subsector forward?
T - What external Threats might hold the subsector back?
The typical assessments of subsectors strengths and weaknesses as well as the

opportunities and threats specific to each of the interventions consist of the following:
a. Production system and delivery of products in the value chain
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b. Quality of business service provisions

c. Competitive advantages of the value chain members
d. Market access, infrastructure, management information and financial systems
e. Policy environment
While designing the interventions, the focus is generally given on the exploitation of
strengths rather than simply addressing on the weaknesses. In other words, the
interventions are not only about addressing the constraints, but also nurturing the strength
of the subsector.
Similarly the opportunities and threats - the external trends that influence the subsector are
also analyzed. The external opportunities and threats are usually categorized into political,
economic, social, technological, demographic and legal forces. These external forces include
such
circumstances
as
changing
business
trends,
increased
competition,
changing
regulations, and so on. They can either help the subsector move forward (opportunities) or
hold the subsector back (threats) -- but opportunities that are ignored can become threats,
and threats that are dealt with appropriately can be turned into opportunities. The
noncontrollable factors are generally dealt through advocacy and networking to bring about
changes in the policy framework.
Strengths
Weaknesses
Diversified land topography provides year

round
different
variety
of
vegetable
of
the
farmers
lack
proper
knowledge on package of practices for
production
Most
different vegetable cultivation
Large number of farmers involved in
Majority of farm do not have access to
vegetable cultivation and the number in
technology; Poor access to improved
increasing over the years.
farming technology
High local demand of fresh vegetables
Market for vegetable not yet saturated
off season most vegetables are imported
Profit from vegetable cultivation higher
to the state from other states
than paddy
High seasonal prices variation as during
No storage facilities particularly in

situation of over supply during peak
production period
Organic farming practice is still limited in
Low cost of labor
the form of pilot.
69
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agribusiness,
agri-clinic
activities
have bee developed by the state for

different
vegetables
which
would
diversify usage of different vegetables

hence demand and production
Poor quality of input supply
Lack of skilled people for the subsector
Very low irrigated land, so most of

cultivable land still remains unused for
vegetable cultivation
Threats
Opportunities
High demand in for both domestic and
Absence of adequate trade policies
export market
Intense
High
demand for
processed
products
such as paste, pure, ketchup, pickle etc.

Potential to employ large number of

people
Higher yield through adoption of improve

production technology
New markets development
Niche target markets
Backward
and
forward
businesses
development
Volumes, production, economies of scale
70
states
competition
from
neighboring
Submitted to CGSIRD
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XII CONCLUSION AND RECOMMENDATIONS

The World Health Organization estimates that low fruit and vegetable intake contributes to
approximately 2.7 million deaths a year from chronic diseases and causes 31 percent of ischemic
heart diseases and 11 percent of strokes worldwide. So intake of fruits and vegetables are essential
for better health. Fruits and vegetables are generally perishable so they experience serious marketing
problems which can be addressed with appropriate public investments in research, infrastructure, and
institution building; and the growth in demand for fruits and vegetables in developing countries
combined with growing export demand creates new opportunities for poor farmers in the developing
world, but developing countries need assistance in adapting policies, institutions, and infrastructure to
take advantage of these trends.
Horticulture crops have a very wide range of adoptability to grow in adverse conditions and
number of horticultural crops is so large that at least few of them can be grown successfully
in all the types of agro-climatic conditions. Therefore, development of horticulture in the
state on mission mode can change the scenario of the economic condition of poor villagers.
Horticulture development can assure year-round employment to farm labourers and once
horticulture is developed, allied industry like processing, packaging and export also gain
momentum in the vicinity providing adequate employment opportunities for the educated
unemployed rural youth and has high potential to improve the socio-economic condition of
the farmers.
Vegetable cultivation in Chattisgarh has a great potential and is a growing subsector in

terms of development of value addition and market expansion. The market size has also
expanded substantially over the last couple of years. But requirement of the hour is
structuring and organising the sector, its market and increasing production. Keeping these
constraints in mind what can be suggested are-
XII.i Integrated production model for small and marginal farmers

Year round vegetable cultivation has to be encouraged among small and marginal farmers.
This will enable them to earn year round income and hence reduce poverty. They will be
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able to employ labour in their farms which will also lead to more work for the villagesr. To
maximize economies of scale farmers have to be brought together in cluster for purchasing
of inputs (fertilizers, pesticides, and seeds), machineries, and usage of machineries. For
efficient formation and functioning of clusters initial support and supervision for a period of
two three vegetable cycles is required, off season cultivation of vegetables is a must
under proper guidance of technical experts. The models can be initiated with the help of
Public private partnership. NGOs can work in formation of clusters and proving support of
the role, share of profit for the cluster in support of Government schemes.
Components of integrated production model:
1. Form area based cluster of farmers on pilot basis where vegetable cultivation is
on high and low already, there are fallow lands available and promote vegetable
cultivation through these clusters. The clusters will be used up for acquiring
inputs, irrigation, and production to maximize economy of scale. Bulk purchase
and sell of products would be done through these clusters.
2. Identify fallow land from land revenue department, Panchayat. These lands can
be taken up by Panchayat and given on lease to these clusters, dividing
proportion to each.
3. Ensure macro-community irrigation system or micro irrigation system to each

farmer. For community irrigation system, like digging pond integration can be
done with MGNREGS for pond construction. The size of the pond should depend
on the catchment area of the land given on lease.
4. Plan crop in the catchment area depending on the distance of the land from water
source. Like crops requiring less water can be planted away from irrigation source
and vis-a-versa. For this the planning with each farmer is essential.
5. Select vegetables like tomato, creeper plants, spice crops, tuberous crops for
cropping in the cluster areas, which have high exportable value and longevity.
6. improved high yielding variety of crops should be promoted by department

through clusters
72
Submitted to CGSIRD
Conducted by HVR
7. Training of farmers on improved cultivation practices. Transferring package of

practice for those crops
Similar approach has been successful in many part of West Bengal where area wise
clustering has been done for production. The costing of the model can be easily calculated
depending on the cluster area.
To adopt the cluster model skill enhancement of farmers and mobilizing the cluster plays a
crucial role. A public private partnership model with help of development organisaton can be
taken up in the initial stages of implementation and slowly rolled out to them.
XII.ii Integrated market model for structuring market
Agriculture has to be viewed as business over and above subsistence. In the world of open
trade, fast paced life processed and packaged food has increased demand in market and
prospects of export. Trade policies have to be reviewed so that private companies come into
the market with contract farming and increase production and profitability.
In West Bengal to absorb the market and huge export of vegetables to different states three
market zones are developed with improved facility and forward linkage chain to market
products. The model is such that to start with construction and operation of company will be
under the Government with their bigger share in the company and slowly as it reaches a
break even point attaining sustainability it can be transferred to the private sector.
(A pictorial representation of the model is given below). It is a complete integrated high
ended model.
Components of the model

1. Building up integrated market model in three zones of Chattisgarh like it has
been done in West Bengal.
2. Use existing cold storage for different category of vegetables short period,
medium and long in each zone
73
Submitted to CGSIRD
Conducted by HVR
The model does not mean creation of facility but usage of these hence structuring and
operation has to be taken up for efficient functioning of the model. Again recommended is a
private public collaboration for operating the market, there should be public ownership in to
the model so that the profits can be shared.
Figure 13: Integrated Market model
74
XII.iii
Submitted to CGSIRD
Conducted by HVR
Other recommendations
Along with the two models other recommendations for improvement of vegetable sector
are-
1. Enhancing area (private and vested land) under vegetable cultivation through increasing irrigation
facility. Along with micro-irrigation facility distribution like sprinkler and sprayer, rain water
harvesting need to be taken up. Hilly undulated area of Northern hills, places with no irrigation
facilities like Narayanpur, Bijapur, Dantewada have to be slowly brought under
cultivation with increased irrigation and land management like 5 percent, trench, model
at individual level. This type of model will reduce irrigation cost and hence production
cost. This type of model can be taken up for small and marginal farmers and also in
tribal belts.
2. River bed cultivation along dried up river can be initiated in a legal frame work. River
beds can be leased out to farmers individually or in group to increase land under
cultivation as well generate revenue for local government.
3. Formation of Krishi Unnayan Samiti in each village. Krishi Unnayan samiti (KUS) will be
responsible for planning of agriculture and horticulture development plan for the village.
This will help in more community participation and increase transparency.
a. They will link with line departments to bring in the Agriculture and
Horticulture schemes/ benefits/subsidies to their village. They will select the
beneficiaries in participatory manner.
b. KUS will have 15 members one each from Panchayat, Agriculture, horticulture
and NGO working in the area or adjoining area. Minimum of three women
members involved actively in farming have to be included in the Samiti. Other
members of the group will be common villagers representing appropriately
different sections, geographical area of the village.
c. Membership of KUS will change after every three years, unless decided by
members of KUS.
d. KUS will meet bi-monthly to discuss on the progress of work of the Samiti as
well supervise the farms in their area. Identify problems on and off the field
related to agriculture and horticulture and take in necessary action with the
concerned person of Panchayat and Line department.
e. KUS will support cluster of farmers in marketing of products
75

f.
Submitted to CGSIRD
Conducted by HVR
KUS will perform social audit of NHM and other schemes.
4. Capacity building at different levels
a. Capacity building of grower in farm business planning, costing and pricing

b. Commercial skill orientation & technical training on quality norms, market
demand assessment is require to growers
c. Capacity building of farmers on package of practices for better management
of crops.
d. capacity
building
of
clusters
in
management
of
group
procurement,
cultivation, marketing, finance management, etc for efficient functioning of

cluster
e. Forming farmers field school at ground level and creating Master trainers
from within the community to give practical on field training to farmers on
better management of crops.
f.
Regular training of ground level extension workers
g. Capacity building of Panchayat to make participatory action plans.

h. Capacity building of Panchayat members on knowledge of government
schemes, its beneficiaries and benefits.
i.
Capacity building of KUS on functioning of KUS, social audit
76
XIII
I.
Submitted to CGSIRD
Conducted by HVR
ANNEXURE
Detailed cost of preferred four vegetables
Village-Linjir
BlockBhramkela
District-Raigarh
Farmer-
Vegetable
Cauliflower
Occupied land for the

vegetable
1.5 acre
Land holding
1 acre
INPUT
Total unit
Unit cost
Total cost
Seed (Himlata)
180 gm
100
18000
Fertilizer
3854.8
Irrigation
Electricity
15 hrs
Ploughing-tructor
1 hr
300 /month
200
400
400
Labour
4440
Transport
Rent of land
540
1.5 acre
7000
10500
Total Cost
OUTPUT
46770
Amount
Total unit marketed
Unit price (average/kg)

6000
Total price
18
110000
Village-Dhanelo Gao
Block-Nimora
District-Raipur
FarmerBharat Lal
Sharma
Vegetable
Bitter Gourd

vegetable
11 acres
Land holding
7acre
INPUT
Total unit
Unit cost
Total cost
Seed
900
1800
Fertilizer and
pesticides
8202
Irrigation
2000
Ploughing-tructor
400
2000
Labour
12600
Transport
7200
Broker
440
Total Cost
3520
45122
77
OUTPUT
Total unit marketed
Submitted to CGSIRD
Amount
Conducted by HVR
4400
27.5
Total price
121000
Village-Linjir
Block-Bhramkela
District-Raigarh
FarmerChakrodhar
Vegetable
Tomato

vegetable
3 acre
Land holding
10 acre
INPUT
Total unit
Unit cost
Total cost
Seed
.75 kg
Rs.225/10 gm packet
16875
Fertilizer
6240
Irrigation
200
600
Ploughing-tructor
500
500
Labour
4020
Transport
10
300
30
Total Cost
OUTPUT
38885
Amount
Total unit marketed

22500
Total price
6
135000
Block-Ambikapur
District-Sarguja
Farmer- Hiralal
Pardu
Vegetable
Egg plant

vegetable
.5 acre
Land holding
5 acre
INPUT
Total unit
Unit cost
Total cost
Seed
100gm
Rs.10/10 gm packet
1000
Fertilizer
2693
Irrigation
500
Ploughing-tructor
400
400
Labour
2760
Transport
Broker
30
90
2700
45
360
Total Cost
OUTPUT
Total unit marketed
10533
Amount

4500
78
Total price
6
27000
II.
Submitted to CGSIRD
Conducted by HVR
List of individual interviews
Individual respondents
Sl.No
Name
Purushottam
Bhikari Ram Kewat
Bharat Khetrapal
Nandkumar Soankar
Mr. Bijendra Pandey
Rohit Singh
Chakrodhar
Bharat Lal Sharma
Ramnath Kushbadh
Mukutdhari Kourha
Hiralal Pardu
Subodh Halder
Lakhan ram Dhimar
Sukhdip Gaur
Manish Yadav
1
2
3
5
6
7
7
8
9
10
11
12
13
14
15
Level
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
District
Bilaspur
Bilaspur
Bilaspur
Dhamtari
Raigargh
Raigarh
Raigargh
Raipur
Sarguja
Sarguja
Sarguja
Sarguja
Dhamtari
Raipur
Baster
Land holding (acre)

0.12
1.75
25
5
1
7
10
7
1
2.6
3.5
landless
5
4
4
(riverbed)
(vested)
Input market respondent

Sl.No
1
2
Name
Hitendra Katjhari
Jainarayan Agrawal (nabin Seed Bhandar)
Level
Input Dealer
Input Dealer
District
Dhamtari
Raipur
NGO interviewed
Sl.INo
1
2
3
Name
CARD
IBRAD
PRADAN
Level
NGO
NGO
NGO
District
Dhamtari
Chhattisgarh
Chhattisgarh
Market level interaction

Sl.No
1
2
3
4
5
6
7
Name
Dhamtari Market
Raipur Market
Bilaspur Market
Raigargh market
Sarguja Market
Kanker Market
Bastar Market
Level
Block
District
District
District
District
District
District
Administrative and officials interviewed

Sl.No
1
Name
Mr. Alok Katiyaar
Level
Director Horticulture
79
District
Chhattisgarh

2
3
4
III.
Sl.No
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
Mr. Pradip Sharma

Mr. M.K.Gupta
Mr. S.K.Mishra
Submitted to CGSIRD
SHDO
Garden Superintendent
ASO
Conducted by HVR
Bilaspur
Bilaspur
Raigarh
List of FGD participants

Name
Yasodha Sahu
Urmila Sahu
Bhanbhai Soankar
Yogeshwar Sahhu
Durga Sahu
Parmila Sahu
Komil Sahu
Parvati Misad
Kumta Sahu
Puranil Misud
Kusun Misud
Nanku Misud
Ganguram Sahu
Ujesh Chakrodhar
Loknath Sahu
Kanhaiya Nagarchi
Rameshyart Misud
Dhanuram Misud
Umalal Misud
Nageswar Misudq
Uishanu Misud
Manugi Misud
Occupation
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Farmer
Village
Coaliari
Coaliari
Coaliari
Coaliari
Coaliari
Coaliari
Coaliari
Coaliari
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
Magadloadh
80
District
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Dhamtari
Land holding
0.5
1
2
landless
landless
landless
landless
landless
50 decimal
landless
30 decimal
5 acre
50 decimal
4 acre
3 acre
2 acre
5 decimal
50 decimal
50 decimal
2 acre
25 decimal
5 acre
Submitted to CGSIRD
Integrated market model
81
Conducted by HVR
Submitted to CGSIRD
Conducted by HVR
Farmers interview questionnaire
Farmers Name: .
Village:
Block:..
District:
Land holding:.
Owned:. Rented (leased), Mortgaged:..
Topography: High/ Medium/Low
Soil type: Clay/ Loamy/Sandy/Gravel/laterite
Irrigation: Pond/River/Lake/Shallow tubewell (<100ft)/Deep tubewell (>100ft)/Sub marsh able
Name of crop in each season:
Summer
Crop
Area
covered
Rainy
Amount
harvested
Hh
consumption
Sold
Crop
Winter
Area
covered
Amount
harvested
Hh
consumption
Sold
Crop
Market
Purchase
Product
Market/place
Amount
Seed
Fertilizer
Pesticide
Marketing channel and amount sold
82
Transport
Contact person
Area
covered
Amount
harvested
Hh
consumpt
Submitted to CGSIRD
Market
Amount sold
Mode of
transport
Middle man
Crop
Conducted by HVR
Commission
Amount
Local
Middle man
Block
Middle man
District
Middle man
Finance:
Name of source
Credit amount
Interest rate
Local informal money lender

Credit from shop
83
Contact person
Submitted to CGSIRD
Conducted by HVR
Broker/middle man
Bank
Cooperative
Mandi market
Price:
INPUT
Total unit
Unit cost
Seed
Fertilizer
DAP
Urea
Phosphate
Pottash
Others
Irrigation
Electricity
Diesel
Insecticide
Pesticide
Fungicide
Ploughing-tructor
Labour
Nursery
Seed bed
Weeding
84
Total cost
Submitted to CGSIRD
Conducted by HVR
Fertilizer/Pesticide
spraying
Plucking
Harvesting
Transport
Manual
Auto
Bus
Motor cycle
Mandri car
Rent of land
Brokery
Farmers FGD Guideline:
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
Topography of the area

Average Land holding of the area
Climate
Seasons of cultivation
Season wise crops
Practice in farming: Seed, Fertilizer, Pesticides, Irrigation system, Cropping pattern, Cropping
trend, Seed treatment, Technology used, source (ploughing, sowing, harvesting)
Market: Chain, Demand, Supply, Import from block, district. State, Storage, Transport
Wage, Labour availability
Finance: Credit availability, Subsidy
Training received, gaps realized
Role of panchayat
Role of block agriculture officer
85

Vegetable Subsector Report by HVR

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Vegetable Subsector Study

VEGETABLE SUBSECTOR STUDY IN CHHATTISGARH

Health Vision and Research

GA 97, 1527 Rajdanga Main Road

Chhattisgarh State Institute of Rural Development

Vegetable Subsector Study

I.I PROFILE OF THE STATE-A BIRDS EYE VIEW .............................................................................. 15

II.I STUDY DESIGN .......................................................................................................................... 23

III.I UNDERSTANDING THE VEGETABLE SECTOR OF THE STATE ................................................... 26

VALUE CHAIN SUB SECTOR

IV.I BACK WARD AND FORWARD LINKAGES ................................................................................... 46

SERVICE MARKET .................................................................................................................. 53

V.I PRE-CULTIVATION SERVICES .................................................................................................... 53

GENDER AND THE SUB SECTOR

Vegetable Subsector Study

SUB SECTOR CONSTRAINTS

GOOD PRACTICE ................................................................................................................. 63

IX.I TECHNOLOGY .......................................................................................................................... 63

POLICY FRAMEWORK: ........................................................................................................ 65

PRI, SHG, GOVERNMENT DEPARTMENT ROLES, SCHEMES, PPP, NGO ............. 65

CONCLUSION AND RECOMMENDATIONS

Vegetable Subsector Study

TABLES AND FIGURES:

Figure 1: Trend in Area and Production of vegetables in India.................................................................................. 19

Vegetable Subsector Study

The main objectives of the study are

Map and analyze the process of production

Identify Best Practices, Quality Control Protocols, and Certification Processes

Conduct inflow-outflow analysis and assess the potential for marketing.

Identify domestic and international trends, issues and opportunities

Propose a marketing strategy for a five year period.

Vegetable Subsector Study

Suggest intervention strategy

1. Land, Soil, Rainfall and Season

Vegetable Subsector Study

Vegetable Subsector Study

1. Cabbage and cauliflower

Vegetable Subsector Study

a. Seed fertiliser, pesticides, labour and finance- In production of vegetable the

Vegetable Subsector Study

Despite these encouragements the market is experiencing typical constraints of a growing

Vegetable Subsector Study

d. Supply and price variation due to seasonality of the product

Lack of information on market demand

g. Strong market regime

Threat of entry from potential entrants.

Intensity of rivalry among existing competitors

Pressure from substitute products

10. Policy Framework

National Agriculture policy, National

Vegetable Subsector Study

This type of model will reduce

1. Integrated production model for small and marginal farmers

department, Panchayat. Ensure macro-community irrigation system or micro

Vegetable Subsector Study

d. Improved high yielding variety of crops should be promoted by department through

2. Integrated market model for structuring market

Vegetable Subsector Study

e. Capacity building of farmers on package of practices for better management of

Capacity building of clusters in management of group procurement, cultivation,

Capacity building of Panchayat members on knowledge of government schemes, its

Vegetable Subsector Study

Profile of the state-A birds eye view

Vegetable Subsector Study