Synopsis

A STUDY ON BAMBOO PRODUCTS AND ITS MARKET LINGKAGE IN

MICRO, SMALL AND MEDIUM ENTERPRISES IN MIZORAM

By C. Lalrinmawia

A synopsis is submitted to
CGBMT, Bangalore
August, 2017
 ABSTRACT

The purpose of this study is to study bamboo and its related species’ products and market
linkage in micro, small & medium enterprises in Mizoram. The major sources of data for
the study will be all organized bamboo micro, small and medium enterprises in Mizoram
including bamboo handicraft clusters like Edenthar Bamboo Handicraft Cluster, Chite
Bamboo Handicraft Cluster, Republic Bamboo Handicraft Cluster, Sesawng Bamboo
Handicraft Cluster, Hnamchhantu Pawl, etc. along with the main stakeholders for
bamboo development in Mizoram namely, Bamboo Development Agency, Government of
Mizoram and Environment Forest & Climate Change Department, Government of
Mizoram. The researcher will use descriptive research method to present facts. In
addition, both primary and secondary data will be collected from various sources using
different techniques. The collected data will be analyzed using both qualitative and
quantitative methods. To this end, questionnaire and interview methods of data collection
will be employed. Thus, the collected data will be tabulated, presented and analyzed by
using frequency and percentage distribution. The study identified major market linkage
challenges which lack them to access up to date market information to link their products
to the relevant consumers. To add, the sustainability of bamboo micro, small & medium
enterprises which are affected by many challenges like lack of market linkage for their
products, lack of positive attitude in the society, lack of sufficient training about new
bamboo industries, lack of sufficient marketing and promotional support, lack of access
to get suitable market location, inadequate support from Government and lack of
managerial skill will be identified. Furthermore, based on the major findings and
conclusions, recommendations will be made as it needs strong institutional linkage with
concerned bodies to provide bamboo products for local consumption and for export
market. Thus, MSME sector and support institutions is needed to work jointly to address
the bottlenecks of market linkage challenges.
1.1 Bamboo Industry: An Overview Bamboo

A fast growing, versatile woody grass is found across the country. It is an economic
resource having immense potential for improving the quality of life of rural and urban
communities with environment regeneration qualities like carbon sequestering.
Bamboos has versatile uses as building material, paper pulp resource, scaffolding, food,
agriculture implements, fishing rods, weaving material, substitute for rattan, plywood
and particle board manufacture. Pickled or stewed bamboo shoots are regarded as
delicacies in many parts of the country. The major user of bamboo in India is paper
industry, which consumes sizeable proportion of the total annual bamboo production.
Today bamboo adorns the homes of the rich and elite and mud-houses alike. Many
useful as well as decorative items are made out of these. Baskets and mats are the most
popular items in this category. Fishing contraptions are prepared of bamboo and cane,
each with a distinct shape. One the most interesting and colorful item is bamboo and
leaf-headgear for tea garden workers and farmers. Umbrella handles made of bamboo
are a specialty of the northeast. A number of designs like leaves, plants and creepers are
etched on them. A variety of furniture items are made to suit the modern homes.
Bamboos are good soil binders owing to their peculiar clump formation and fibrous root
system and hence also play an important role in soil and water conservation. The world
market for bamboo is valued at more than US $ 10 billion of which China’s share alone is
to the tune of 50%. India is looking to tap the growing global demand for Bamboo. India
is currently able to supply more than 13.47 million tons. The country today exploits just
a tenth of its bamboo-producing potential.

The bamboo industry in Mizoram is experiencing a remarkable growth. Popularly

referred to as the “poor man’s timber”, bamboo forms an integral part of life in the hill
State. It has versatile benefits, ranging from the basic of building a house to being an
important food item. Mizoram is self sufficient in bamboo and it is indeed a good money
making material. Mizoram is the first state in the country to utilize its bamboo resources
to meet its growing industrial needs. The bamboo industry has received a boost
following the recent initiatives by both the Central and the State Governments.
Although Mizoram is still considered an industrially backward state, its small-scale
sector has witnessed commendable growth. India has the largest bamboo forests in the
world, ranking second in total bamboo diversity with 136 species. More than 58 species
of bamboo are found in the North Eastern region, with Mizoram alone boasting of over
35 different species. In Mizoram, bamboo grows over more than 9,000 sq km covering a
third of the State. The size of the domestic bamboo industry is estimated to be about
Rs.6,505 crore.

In Mizoram the total area cover by forest is 15, 93,650 ha which is 77% of total
geographical area. Mizoram has abundant natural bamboo resources. Around 57% of
the geographical area of Mizoram is under bamboo cover. Both the Clump forming and
non-Clump forming bamboos are available in most parts of Mizoram except in the
higher altitudes of the eastern part of Mizoram. There are twenty three species of
bamboos in Mizoram of which Melocanna baccifera is the dominant forest resource of
the State which fetch Government revenue to the tune of Rs 80 lakhs annually. The
dominant species of M.baciffera called ‘Mautak’ is a versatile species; it is a spreading
species forming no-clumps. The clump grows up to 8-10m, they are wisely used for
construction of Kacha Houses, furniture, fencing, weaving, pulping. The shoots are eaten
in large scale, during rainy season it forms a dominant food item Bamboo shoots are
processed and packed in tins by a corporation called the Mizoram Food & Allied
Corporation (MIFCO). The finished products are available all the year round.

There are at least 20 identifiable species of bamboo indigenous to Mizoram. Around

30% of bamboos grown in the state are still wild bamboo and unexploited. Knowing the
availability of bamboo resources and its probability for making contribution to the
society, Mizoram Government established Bamboo Development Agency, Mizoram in
2002 and registered as Society under the Societies Registration (Extension to Mizoram)
Act, 1976 (Mizoram Act No. 3 of 1977) with an objective to encourage, start, organize,
carry on, assist, develop and regulate resources, plantation, utilization of research and
development of bamboo and perform such functions as the Government may prescribe
from time to time. Even though the State Government has been taken necessary actions
through Bamboo Development Agency, Mizoram to utilize bamboo more widely by
setting up of bamboo chipping units, bamboo charcoal units, and bamboo round
agarbatti sticks units, etc. so as to increase revenue streams from bamboo resources,
but unfortunately the activities taken by the State Government has not gain much
success from the beginning.

1.2 The concept of marketing

Marketing is a social and managerial process by which individual and groups obtain
what they need and what through creating ,offering ,and exchanging products of value
with others (buyers, sellers ) (kotler,1994,p.6) . Marketing is a strategic tool for business
development in binding for the growth and survival of micro and small enterprise.
Marketing is the process of anticipating the needs of targeted customers and finding
ways to meet those needs profitably (Pichop, and Mndiga, 2007).Marketing systems are
dynamic; they are competitive and involve continuous change and improvement.
Businesses that have lower costs, are more efficient, and can deliver quality products.
Those that have high costs, fail to adapt to changes in market demand and provide
poorer qualities are often forced out of business. Marketing has to be customer-riented
and has to provide transporter, trader, etc. with a profit. This requires those involved in
marketing chains to understand buyer requirements, both in terms of product and
business conditions.
1.3 Objectives of the Study

The general objective of this study is to study bamboo and its related species’ products
and market linkage in micro, small & medium enterprises in Mizoram.

1.3.1 Specific objectives

 To assess to what extent bamboo products linked to the local and export
markets.

 To investigate the marketing practice of bamboo products in Aizawl.

 To assess to what extent support institutions contribute their role for bamboo
micro, small and medium enterprises.

 To explore the challenges that encountered the sustainability of bamboo micro,

small & medium enterprises in Mizoram.

 Drawing the socioeconomic condition of various bamboo industries including

bamboo clusters in Mizoram.

 Outlining the present business environment of various bamboo industries

including bamboo clusters in Mizoram.

 Identifying the problems faced by bamboo micro small & medium enterprises in
Mizoram.

 Identifying infrastructural and financial support required for the overall

development of various bamboo industries including bamboo clusters in
Mizoram.
1.4 Scope of the study

The study would will help to get basic information about bamboo micro small & medium
enterprises including the exact location of these industries, age of the industry, its
products, the average investment, employment level, level of technology, turn-over,
exports and institutional supports available in the cluster. Bamboo Handicraft Clusters
will also be studied about their products, investment, market, location, numbers of units
working together in the cluster, etc. The demography of the cluster will also be
assessed. The proper intervention plan will be worked out in different areas like
marketing, technology upgradation, credit, institutional capacity building etc. after
making a need based analysis. It would also provide a means for assessing the feasibility
of interventions. The study would also come in handy in the identification of major
associates to bring out proper implementation of the entire programme.

The study will have a good scope since the researcher is working in Bamboo
Development Agency and holding the post of Cluster Development Officer so that it will
convenient to manage and easy to access information.

1.5 Significance of the study

The study is expected to investigate the marketing problems of bamboo product and to
look for the gaps which are encountered bamboo micro, small & medium enterprises.
Moreover, it may be input for the concerned bodies to develop an institutional support
network that facilitates the marketing and trade of bamboo products for local
conception and for export market for sustainable economy development. It may also
encourage other researchers study further on this area.
1.6 Methodology of the Study

This study is design to study on bamboo products and market linkage in micro, small &
medium enterprises. The approach to be used in this research is a mixed research
approach which makes the use of both quantitative and qualitative descriptive methods
to present facts. In so doing, Quantitative method will be used to apply frequency
percentage and mean of respondents' of data collected through questionnaire.
Qualitative method will also be employed to describe and analyze the information
obtained through interviewing from Head office of micro, small & medium enterprises
including bamboo handicraft clusters, bamboo product consumers, Bamboo
Development Agency, Commerce & Industries Department, Environment Forest &
Climate Change Department and other stakeholders like financial institutions, NGOs,etc.
Due to these facts a mixed approach of the research methods will be conducted. Using
both approaches will provide a better understanding of research problems than either
approach alone. Hence, the mixed approach in this research will employ strategies of
inquiry that involve collection of qualitative and quantitative data either simultaneously
or sequentially to obtain pertinent and precise information about the current marketing
problems of BMSMEs in the study area under investigation.

1.6.1 Source of data

To conduct this study, the researcher will use both primary and secondary data from
various sources using different techniques. To collect primary data questionnaires and
interviews will be applied. Thus, BMSMEs, bamboo product consumers, Head of MSEs
office, Bamboo Development Agency, Commerce & Industries Department,
Environment Forest & Climate Change Department and other stakeholders like financial
institution, NGOs will be taken as primary source of data. In addition, the sources for
secondary data will be BMSMEs document reviews, occasional papers, journals, and
internet website.

1.6.2 Sampling techniques and sample size

According to Van Dalen, (1979 p, 131) the kind of sampling to be used depending on
three factors - the nature of the population, the type of investigation and the degree of
precision desired at minimum cost. Taking this in to account, the target population of
the study will be bamboo micro, small & medium enterprises including bamboo
handicraft clusters in Mizoram. Regarding bamboo consumers, they will be selected
using random sampling techniques. This will be believed to be representative for the
researcher’s convenience based on resources limitation. BMSMEs Head office will also
be selected using purposive sampling techniques.

1.6.3 Instrument of data collection

In order to obtain available information about the subject of study, different

instruments will be used to collect primary and secondary data. Questionnaire and
interview will be developed and administered based on the basic questions of the study.
Almost all the questions to be included will be both closed- ended and open- ended
questions.

1.6.3.1 Questionnaires

A structured questionnaire will be considered as a major data collection tool and it will
be administered to (bamboo micro, small & medium enterprises). It should be
structured because it will be prepared to rate sets of a given variables using a five point
Likert-type rating scale and option type of questions. Such types of item are easier to
categorize and analyze the responses using statistical technique. It also invited free
response at the end of a given set of variables just to add if missed points were felt by
the respondents.
1.6.3.2 Interview

To validate the study, structured and a semi-structured type of predetermined

questions will be prepared and conducted with Head of BMSMEs, other stakeholders
from like Government Departments, financial institutions, NGOs and randomly selected
bamboo product consumers will be interviewed to get additional and supportive
information.

1.6.3.3 Pilot test of questionnaires

Pilot testing questioners will helped to provide information about suggestions for
improvement industry and to assure data quality and to detect ambiguous statements.
Then a draft questioner will be administered for BMSMEs which may not be included in
the sample. This helped the researcher to get feedback whether it will be constructed
properly or not. Especially it will be used in detecting some redundant, ambiguous and
unclear items of the questionnaire.

1.6.4 Data gathering procedures

At the beginning, the questions will be prepared based on the reviewed literature and
basic questions of the study. Then after, the researcher will conduct pilot test by small
group of sample respondents to check the reliability of the questionnaires before final
administration for practical use. Before data collection, manuscripts of the
questionnaires and interview will be checked and distributed to the respondents. The
response gathered from sample respondents will be collected tabulated, analyzed and
interpreted carefully and thoroughly. At the end summaries of major findings and the
recommendations will be stated and the final draft of the questionnaires and semi-
structured interview questions will be attached at the end of the research report.
1.6.5 Method of Data Analysis

The quantitative data obtained from questionnaire will be edited, categorized, entering
into SPSS (17.0 versions). After this the data will be interpreted and discussed for which
appropriate statistical tool like frequency, percentage and mean will be used to analyze
the data. Furthermore, the qualitative data will be organized into meaningful themes
and triangulated by assessing and cross checking finding from different sources. Finally
the major findings of the study will be reported and feasible recommendations will be
forwarded.

1.7 SWOT analysis

SWOT analysis will also be conducted to help the study in assessing the strength,
weakness, opportunities and threats that any business venture has to offer.