Studies ExportPromotionOfMakhanaFromBihar

PROJECT REPORT ON EXPORT PROMOTION OF MAKHANA FROM BIHAR UNDER GOI-UNCTAD DFID PROJECT ON  STRATEGIES AND PREPAREDNESS FOR TRADE   AND GLOBALIZATION IN INDIA

SUBMITTED TO

 By

Dhanraj Mahal, 1 st Floor, Chatrapati Shivaji Maharaj Marg, MUMBAI-400001 Northern Regional Office, B1/9, Community Centre, Janakpuri, New Delhi-110058

2007

CONTENTS Page No.

Preface Acknowledgement Executive Summary of the Project

1-2

I INTRODUCTION a. Background of the Project  b. Objectives of the Project c. Constitution of the Team d. Methodology and Field visit

3-4

II MAKHANA CULTIVATION a. Morphology of Makhana  b. Makhana cultivation Practices c. Pest and control Measures d. Post – harvest operations e. Required implements/appliances f. Dietary characteristics of Makhana g. Medicinal properties of Makhana

5-9

III STATUS OF MAKHANA CULTIVATION & FINDINGS a. Demographic and Socio institutional settings of Makhana cultivators  b. Inventory of water resources c. Lease system of government ponds d. Level of Technological use e. Productivity levels f. Economics of Makhana cultivation g. Price Spreads h. Sources of Fund and interlinked transactions i. Market Channels  j. Storage Godowns k. Transport connectivity and accessibility level l. Risk hazards m. Legal and Promotional environment n. Value addition/Flow Chart o. Production of Makhana – Guri and Pop  p. Segments of demand absorption q. Demand projections of Makhana

10-26

IV RECOMMENDATIONS V ANNEXURES

27 28-45

CONTENTS Page No.

Preface Acknowledgement Executive Summary of the Project

1-2

I INTRODUCTION a. Background of the Project  b. Objectives of the Project c. Constitution of the Team d. Methodology and Field visit

3-4

II MAKHANA CULTIVATION a. Morphology of Makhana  b. Makhana cultivation Practices c. Pest and control Measures d. Post – harvest operations e. Required implements/appliances f. Dietary characteristics of Makhana g. Medicinal properties of Makhana

5-9

III STATUS OF MAKHANA CULTIVATION & FINDINGS a. Demographic and Socio institutional settings of Makhana cultivators  b. Inventory of water resources c. Lease system of government ponds d. Level of Technological use e. Productivity levels f. Economics of Makhana cultivation g. Price Spreads h. Sources of Fund and interlinked transactions i. Market Channels  j. Storage Godowns k. Transport connectivity and accessibility level l. Risk hazards m. Legal and Promotional environment n. Value addition/Flow Chart o. Production of Makhana – Guri and Pop  p. Segments of demand absorption q. Demand projections of Makhana

10-26

IV RECOMMENDATIONS V ANNEXURES

27 28-45

PREFACE   A sound macro economic environment and effective trade policies are essential but not  sufficient conditions for integrating developing countries in the multilateral trading system. There is also a need to enhance national and sub national capacity to formulate export strategies at selected product/sector level, based on realistic assessments of    production and understanding of international commercial practices and standards. To   facilitate and support this capacity building, the Government of India, UNCTAD and    DFID/UK are jointly implementing a five-year programme titled "Strategies & Preparedness for Trade & Globalization in India". AFC feels privileged to have been associated as a Tier II partner. The present study on identifying constraints and working out action plan to increase exports of Makhana (Gorgon nut) from Bihar has been conducted under the above  project.   Bihar accounts for over 85 per cent of the Makhana production of the country which resulted into thrust area for taking up the task and identifying the constraints in the export of Makhana from the state. As per a rough estimate 50,000 tonnes of Makhana worth Rs 550 crores in market are produced annually. However, there is need of  undertaking an extensive survey of its actual coverage, production and productivity in  North Bihar, Lower Assam and other places in India.   Makhana is probably an under exploited and under investigated crop. It is being cultivated traditionally and its processing from guri (makhana) to pop requires skilled  laborers. Mechanized processing is yet to be introduced which restricts its standardized    processed products inhibiting export demand. Integrated Makhana-Fish cultivation, mechanization of harvesting, post harvesting and processing, establishment of makhana based industries, development of better storing and transport facility, contract farming and efficient marketing will play a vital role in livelihood enhancement of poor Makhana growers.

Corporate Office: Dhanraj Mahal,CSM Marg, Mumbai

A K Garg Managing Director 

ACKNOWLEDGEMENT

The Government of India (GOI), United Nations Conference on Trade and Development (UNCTAD) and Department of International Development (DFID), UK are jointly implementing a five year project titled ‘Strategies & Preparedness for Trade & Globalization in India”. APEDA has been selected by UNCTAD as Tier-I partner to facilitate the formation of a virtual network of existing national, regional and state level institutions dealing with the trade in agro products. In addition AFC as Tier II partners have also been identified to facilitate in increasing the level of awareness and building the capacities of the stakeholders at various levels to meet the opportunities and challenges of  globalization. The initiative by APEDA for preparation of project report on makhana export promotion from Bihar is a welcome step in achieving the said objectives.

AFC feels privileged and honoured to have been assigned the preparation of the project report on export of Makhana from Bihar. AFC is extremely obliged to Shri T.C. Venkat Subramanian, Chairman & Managing Director, Export-Import Bank of India for his sagacious suggestions. The various issues such as global production – consumption  pattern and its utilization and value addition prospects were discussed with Shri Ashish Kumar, Chief Manager, EXIM Bank.

A team under the leadership of Shri Niraj Kumar Jha, Manager, AFC was constituted to undertake the study. The field work became inspiring in the presence of Dr. B.K.Jha, Sr. Scientist, National Research Centre on Makhana, Darbhanga. AFC is grateful to NRC, Makhana for its high quality inputs on overall prospect of export of makhana from Bihar. AFC is also thankful to entrepreneurs, wholesale and retail traders, secretaries of  cooperative societies, growers and processors, who readily cooperated with the study team in providing necessary inputs. AFC appreciates the valuable inputs provided by Shri Vijay Mahto on makhana trade and Shri Satyajeet on value addition/processed products in Makhana commodity.

Executive Summary Bihar accounts for over 85 per cent of the Makhana production of the country which resulted into thrust area for taking up the task and identifying the constraints in the export of Makhana from the state. As per a rough estimate 50,000 tonnes of Makhana worth Rs 550 crores in market are produced annually. However, there is need of undertaking an extensive survey of its actual coverage, production and productivity in North Bihar, Lower Assam and other places in India as well as abroad including Japan, China, North America, Korea etc. Makhana is probably an under exploited and under investigated crop. Preparation of the project report on makhana from Bihar involved collection of primary as well as secondary data from published as well as unpublished sources. Accordingly, the field visit by the team was made to Darbhanga, Madhubani, Katihar, Saharsa, Purnea and Patna districts of Bihar. During the field visit, a detailed discussion was held with Dr. B. K. Jha. Sr. Scientist at National Research Centre, Darbhanga. Besides, 40 makhana seed/guri growers representing different size categories of ponds/tanks were interviewed with structured interview schedule. In addition 8 makhana processors and 4 whole sale traders from Darbhanga, Katihar and Madhubani districts were also interviewed with a structured format. Preparation of the project report on makhana from Bihar involved collection of primary as well as secondary data from published as well as unpublished sources. The team visited Darbhanga, Madhubani, Katihar, Saharsa, Purnea and Patna districts of Bihar. During the field visit, a detailed discussion was held with Dr. B. K. Jha. Sr. Scientist at National Research Centre, Darbhanga. Besides, 40 makhana seed/guri growers representing different size categories of ponds/tanks and 8 makhana processors and 4 whole sale traders were interviewed with structured interview schedule. The net income from Guri cultivation ranged from Rs. 5625 to 10,125 per acre: depending upon the nature and size of the pond. Prices of Guris as well as Makhana pop varied widely across seasons as well as regional locations. For Guri with 95 % of arrival concentrating between August to October its prices during peak season remained low in the range of Rs.15 – 20 /kg. It reached almost Rs.20/kg by December. It is hoarded mostly by the wholesalers in Madhubani, Darbhanga, Katihar and Purnea. Within the season, it varied albeit marginally, across different locations/blocks in the district. Based of the field visits, the following are the steps which are proposed to be taken to expedite the export of makhana from Bihar.

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Integrated Fish cum Makhana Cultivation should be promoted which will play a vital role in livelihood enhancement of poor Makhana growers.

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Good Agricultural Practices as recommended by National research Centre, Darbhanga should be promoted through cluster based approach.

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Mechanization of harvesting, post harvesting and processing is required. NRC has already developed mechanized system of makhana pop processing which will be started in few months.

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Institutional credit facilities at two intervals such as during leasing of pond/land and irrigation are required.

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Training/Capacity building on makhana processing specially from guris to pop is required.

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Contract farming based on centralized model may be adopted. As the processor buys the commodity from a large number of farmers under contract with the firm.

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As there is very less application of chemicals and fertilizers so this crop can be taken as Organic produce and its promotion is required accordingly.

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The Agri- Export Zone Hazipur, could be widened to include export promotion of Makhana products as well under partnership of makhana growers/processors, value adding processing firms to get fiscal incentives in terms of tax concessions under the schemes of government of India.

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The traders/wholesalers/retailers are not aware about the procedures of export. So, training for creating awareness regarding the export procedures/ISO certification etc is also required.

CHAPTER I

INTRODUCTION

Background of the Project The Government of India (GOI), United Nations Conference on Trade and Development (UNCTAD) and Department of International Development (DFID), UK is jointly implementing a five year project titled ‘Strategies & Preparedness for Trade & Globalization in India”. APEDA has been selected by UNCTAD as Tier-I partner to facilitate the formation of a virtual network of existing national, regional and state level institutions dealing with the trade in agro products. Agricultural Finance Corporation Ltd as Tier II partner have been identified to facilitate in increasing the level of awareness and building the capacities of the stakeholders at various levels to meet the opportunities and challenges of globalization. The Agricultural Produce Export Development Authority (APEDA) assigned the preparation of project report on export promotion of makhana from Bihar.

Objectives of the study The specific objectives entrusted by the APEDA for preparation of the project report on export promotion of makhana from Bihar were as follows:

a. To prepare a detailed report on export promotion of makhana from Bihar   b. To identify the constrains in export promotion of makhana c. To identify harvest and post harvest technologies for makhana including mechanization of harvesting, post harvest and processing d. To study the existing arrangements for cultivation and prospects of contract farming e. To insuring the sustainability of aquatic eco system f. To identify constraints in profitability of makhana growers, exports of makhana and its processed products.

Constitution of Team For preparation of the project report on Makhana, a team of officers under the leadership of Shri Niraj Kumar Jha, Manager AFC was constituted and necessary guidance was taken from Dr B.K.Jha, Sr. Scientist, National Research Centre, Darbhanga. The different

issues on value addition and its export potential have been discussed with Shri Ashish Kumar, Chief Manager, EXIM Bank. In addition, field supervisor has been assigned the data collection task.

Methodology and Field Visit Preparation of the project report on makhana from Bihar involved collection of primary as well as secondary data from published as well as unpublished sources. Accordingly, the field visit by the team was made to Darbhanga, Madhubani, Katihar, Saharsa, Purnea and Patna districts of Bihar during 02/08/2007 to 12/08/2007. During the field visit, a detailed discussion was held with Dr. B. K. Jha. Sr. Scientist at National Research Centre, Darbhanga. Besides, 40 makhana seed/guri growers representing different size categories of ponds/tanks were interviewed with structured interview schedule. In addition 8 makhana processors and 4 whole sale traders from Darbhanga, Katihar and Madhubani districts were also interviewed with a structured format (Annexures).

CHAPTER II MAKHANA CULTIVATION   Euryale ferox Salibs known in Vernacular as Makhana and Gorgon nut or Fox nut in

English belongs to the family of Nymphaeceae. Reports of fossil species corroborate that

 E ferox is a temperate plant, introduced through bird dispersal in different parts of the

world, mainly India, China, Japan, Korea, North America, Manchuria, Nepal and Bangladesh. In India, Makhana is grown as a natural crop in stagnant water pool mostly lakes and tanks, in states such as Bihar, Assam, West Bengal, Tripura, Manipur, etc. The   bowl shaped physiography of north Bihar in general and Mithilanchal in particular, abounding in myriad stagnant fresh water pools with repositories of diverse acquaphytes holds unbound potential for cultivation of Makhana crop in this land. Although Makhana is cultivated in stagnant water pools/lakes in different parts of the country, the possession of unique skill by the fisherman community of Mithilanchal in arduous task of  harvesting/collection Makhana Guri seeds from the deep water beds by making heaps on the beds through countless diverse and processing these seeds into kernels/ pops endows this region in commercial cultivation and processing of this crop.

i)

Morphology of Makhana

The Makhana plant is a large prickly acaulescent aquatic herb with floating leaves. The plant grows in standing shallow water (1.5-5.0 feet water depth) and has rhizomatous stem. The rhizomes remain deeply rooted in the sediment by means of thick fleshy roots in clusters. The huge thorny elliptic or orbicular  mature leaves are peltate (1.0-3.0 diameters). The leaves are green above and red/purple beneath.

The fruits mature and burst between June and August and the globular seeds drop to the pond/water bed. With the onset of winter season, the plant undergoes natural decay. To facilitate harvesting of guris/ seeds, the left over thorny plants are removed from the water before harvesting. With harvesting of guris/seeds complete in three to four separate collections, some seeds are left over in the pond   bed and start germination around December – January. The thick fibrous roots comprise three four clusters, each having 15-17 rootlets. The growth stages of  Makhana plants are sowing (mostly left – over seeds) germination, membranous leaves, flowering and fruiting, bursting of fruits and harvest phases, occurring during, November, December, January, February-March, April-June, July-August

and September-Octobers months respectively. The flowers are solitary submerged and epigenous with four persistent thorny sepals inserted on the flowers above the level of the ovary together with several seriate petals. The ovary opens on the surface of the water 2-3 days and then sinks under water until the fruit ripens. Around the ripening stage, the fruit once again reappear on the water surface. The inferior, multi- carpellary ovary develops into a spongy fruit, which is densely,  prickly of the size of a large orange, containing 30-40 pea-sized seeds with bard  black seed cover. Once the fruit ripens, it bursts open and seeds spread over the  pond bed.

ii)

Makhana Cultivation Practices

The leftover seeds germinate for the next crop cycle/season during OctoberDecember. Replantation is done manually if there is dense or sparse growth of   plants. The tender plant is protected form pests, mostly through manual netting/ roping of the plant or application of firewood ash. Of late, the makhana growers have started using pesticides as well if the pests menace is not controlled by the manual or natural methods. Normally the growers would utilize his own plant   buds in other ponds owned by him or the same pond for replantation. In rare cases, it is sold or purchased. The indigenous boat made banana trunk or earthen  pot are used for pest treatment and other related operation. The re composition of  organic matter either decayed plants or supplements such as dung/ manure act as fertilizing agents for the crop flowering starts in April – May.

iii)

Pests and Control Measures

The plant is attacked by a number of insects and pests such as aphids, caseworms and root borers. Heavy infestation is characterized by etiolation and decay of leaf. The traditional method to overcome such pest attacks on Makhana plants involve roping/netting as also application of burnt firewood or ash. Modern methods of  controlling the pest menace are controlled through sprays of insecticides like Sevidon, BHC and Eldrin. The Makhana leaves are also attacked by fungal leaf blight disease,

which can be controlled by spraying  pytolam . Besides storage insects like mite are also common, which bring about a decline in the quality of the pop and stored raw seed. If not checked, the production loss could be as high as 80-90% due to pest infestations.

iv)

Post-harvest Operations.

After the harvest of Makhana guris/seeds, it is sun-dried and stored in shade under  constant spraying of water as long as it is not popped. It is then processed manually into Makhana pop which involves drudgeries of human labour, often creating adverse health hazards for those involved in processing work, mostly women and children. Proto-type of a popping machine has been developed at National Research Centre on Makhana, Darbhanga. But, it is yet to be commercialized.

v)

Required Implements/Appliances

Some of the major implements/tools/appliances required in Makhana guri cultivation and pop processing are as follows: a.

Pitcher Floats (Gharra): It is an indigenous boat made with bamboo poles and

earthen gharra in inverted position. It is used for movement in pond interiors for  various operations such as replantation, plant protection, harvesting etc. This is also used for fishing and harvesting of Singhara (Water Chestnut), another aquatic crop. b.

Rope:

The long inter-woven paddy straw, made indigenously, mostly by

Makhana growers themselves, is used to roll over the tender leaves in the pond (March-April) to control aphid pests. c. Auka: It is a cylinder shaped large bamboo stick bucket with one end closed and

the other end kept open. It is used for harvesting raw seed/guri from the pond bed. d. Gaaz : It is an inverted bell or comma shaped bamboo stick appliance, utilized

along with Auka for harvesting guri/seed. It is also used in fishing operation. e. Kaara : The bamboo poles fixed in the pond sediments are known locally as

Kaara. They are used for demarcation of areas to be swept by individual harvesters. Seeds collected at the bottom of the pond are heaped around these kaaras for being lifted ashore.

f. Khonghi or Deli: It is smaller bamboo stick bucket with cylindrical shape like

Auka. It is utilized for storing raw and popped seed as well as fishes. g. Vines: Two locally available vines, known in vernacular language as Dudhlau and

Kariyaunu, are utilized as cordage in bamboo appliances. h. Sieves: Seven to ten sieves of different mesh sizes are used for the gradation of 

raw seed and popped Makhana. These sieves are made of iron sheets with wooden frames. i. Mats: Mats are used of sun-drying raw seeds/guris before roasting. These mats are

generally made of kush.  j. Aphara and Thaapi: These are wooden appliances made of heartwood, mostly

shisum. Aphara is a platform on which roasted guris/seeds are hit with flat wooden hammer called Thaapi. k. Karachi: This is bamboo split which are inserted in the mud along with the

transplanted seedling to help Makhana plant establish foothold when the water level is deeper. l. Earthen pans: Vernacularly known as Karachi, they are utilized for roasting the

sun dried sees/guris without sand mix. Some other appliances used in Makhana Guri cultivation and pop processing are Pathiya and Chhitiya made of bamboo sticks. Besides, there are a few other  appliances such as earthen pitchers, aluminium and iron utensils, and jute/plastic  bags.

vi)

Integrated Fish-Makhana Cultivation

Integrated makhana- fish cultivation is reported to be the common practice in the State of Bihar. It involves rearing of air-breathing fishes like Kavai, Mangur, Singhi etc. along with cultivation of makhana in small ponds with moderate supplementary feed. The culture of water breathing fishes is restricted in such ponds, as makhana leaves create a blanket cover over the water surface, restricting fishes to take water   breathing. However, in large ponds, the integrated Makhana-fish culture consisting of  water breathing fishes like Rohu, Katala, Mrigal etc. was also observed in the field. Technology for such culture involves setting aside the middle part of the pond from

Makhana cultivation such that the blanket cover on water surface due to large Makhana leaves are avoided. Recent experiment made for integrated Makhana fish culture with exotic fish like Telapia in Darbhanga division has offered a new option to such growers in the district. This exotic fish is a voracious herbivore and even controls the menacing weed in Makhana ponds. vii)

Dietary Characteristics of Makhana

The food material in Makhana seed is stored in the perisperm. Edible parts of the seed contain 12.8% Moisture, 9.7% Protein, 0.1% Fat, 0.5% Minerals 76.9% Carbohydrates, 0.9% Phosphorous, 0.02% Calcium and 1.4 mg/100g of Carotene. Calorific analysis gives a value of 362 k.cal/100g for raw Makhana and 328 k.cal/100g for popped Makhana. Thus the calorific value of Makhana compares well with staple food materials such as wheat, rice etc. Makhana is superior to dry fruits such as almonds, walnut, coconut and cashew nut in terms of sugar, protein and ascorbic acid and phenol content. It is even superior to many plant and animal based diets. viii)

Medicinal Properties of Makhana.

The medicinal properties of Makhana are also well established, but least explored. Its curative properties for human ailment such as respiratory, circulatory, digestive and reproductive system are well established. It is also effective for stomachic and anticular pain as also seminal loss. On account of lesser fat content it serves as an ideal food for heart patient.

CHAPTER III STATUS OF MAKHANA CULTIVATION IN BIHAR As is reflected by the data information obtained through sample survey of makhana growers as well as processors, sampled with whole sellers and different government officials, cultivation of makhana in Darbhanga is replete with inefficiencies and rigidities in the factor market, including the weather pond resources. More important, it is characterized by absence of new technological packages, large intermediaries in the makhana product market, interlinked credit and product transactions with high element of exploitation, weak socio-institutional settings in which makhana growers

and processors operate, absence of adequate demand absorptions, large price and   production fluctuations etc. In order to have a better glimpse of the production conditions of makhana commodity, the following paragraphs present an analytical insight on the status of makhana cultivation a little more elaborately.

i.

Demographic and Socio -Institutional Setting of Makhana Cultivators

The Makhana growers in the district are from the mallah /machhuara/ keot caste with fishing and Makhana cultivation as their major economic activity. It is their  traditional occupation, inherited from forefathers for generations. According to rough estimate, there are around 30 households of mallah with a population of around 2.0 lakh persons in the district. Average family size, ranging between 5-8 persons is much higher among them. The Mallah community is sub-divided into three sub-castes viz, Baanpar, Chaabh and koal, each with straight jacketed composition, not marrying among each other. Of them Baanpar, forming only 10% of the community, is superior  cast group, belonging mostly to the creamy layer. They are resource rich as well as   better educated. Politically, they are more active and most of the Secretaries of  Machhuara Co-operative Societies belong to this sub-caste. Generally, they will not do the menial job on Makhana ponds. On the other hand, Chaabh and Koal sub-caste groups have the dominant demographic presence, and are most resource poor and illiterates. They are the actual divers and guri harvesters. These people move in groups to different places in Madhubani,, Darbhanga,Katihar, Saharsa as also distant   places in Assam, West Bengal and the neighbouring country Nepal for harvesting Makhana seeds. The group generally harvests the seeds in 2-3 lots on contract basis either on share of seeds or cash amount. They also possess the unique and the exclusive skill in Makhana pop processing.

Literates with knowledge are counted few, more so among the females. With acute  poverty, incidence of malnutrition and under-nutrition was visible, particularly among the children of this community. Division of labour is categorical among them with men folk cultivating Makhana crop which included sowing (if required) transplanting and harvesting guris. The trading of Guris and Makhana Lawa is also handled by the

male folk. These men are also engage in fishing work as wages labourers. The women folk on the other hand vend fish look after domestic animals ( Cow, buffalo and goat) cultivate the fields taken on batai, fry makhana seeds for popping(which is shared by men also) besides cooking the meals , looking after the house and family kids. Children too contribute, particularly in removing the kernels from Makhana pop. While the son would help in fishing and Makhana cultivation, the girl child does the household chores, including tending of little children. Child marriage has been reported common in this community.

Thatched mud houses make up their dwelling places, which are generally clustered around the water bodies. These water bodies i.e. ponds are sanctified by them as their  deity who they worship and render sacrifices. A strong caste- panchayat operates among them whose decisions are binding on the fellow caste men. Serious affliction in their society is alcoholism among the men apart from tobacco chewing and bidi smoking. This often leads to domestic violence and forces them into vicious cycle of  crippling indebtedness. The men folk borrow money from the middlemen and moneylenders at high rates of interest (60%-120%) to meet their day to day expenses and drinking habit which forces them fall into debt trap.

Although the mallah community is the traditional grower of Makhana other castes have also moved into the business of Makhana cultivation and created their own niches in this market. They cultivate Makhana either on their own ponds or sub leased government ponds by engaging the services of mallah as wage earner.

ii Lease System of Government Ponds

Government ponds, earmarked for Makhana cultivation are leased at prescribed rates with preference of Fishermen Co-operative Societies which in turn lease it to its members. These societies are registered under the Bihar Co-operative Societies Act 1935. The ponds are leased in the name of the Secretary of the society who sub-lets the government ponds to the members. In some villages, it was seen that the entire community in the village jointly cultivated Makhana ponds with equal sharing in the

output as well as labour and other inputs. The secretaries are elected by the members and these societies are governed by the rules under the 1935 co-operative act. Attempts have also been made to organize the Machhuara women into thrift and credit groups i.e. Self Help Groups. Some NGO’s like SAKHI have separately formed Fisherwomen co-operative Society, registered under the Bihar Self  Supporting Co-operative Society Act 1996. However this is yet to percolate among the makhana growers in Madhubani district.

iii Inventory of Water Resources

Inventory of water pond resources suggests that Madhubani district is fairly rich in  pond resource as the district has a total of 5014 ponds with an aggregate water area of  9673.2 Ha. Thus the average pond area works out to 1.93 ha. In this district, Government ponds, with a share in number of ponds and area was higher for  government ponds (2.01ha) than private ponds (1.82ha). Makhana seed/guri is cultivated in only 41.5% of water pond tank area (4,019ha) in the district. Besides the large low lying chaur land(approximately 10 thousand ha) also offers technical   potential for Makhana guri cultivation in the district as has been the experience in Madhubani district.

Blocks having larger number of ponds (government as well as private) included Ghoghardiha, Laukahi Harlakhi, Jhanjharpur, and Basopatti. However in terms of  water area blocks such as Jhanjharpur, Basopatti, Harlakhi, Ladaniya and Madhepur  figured more prominently. Comparison of government ponds vis a vis private ponds across different blocks revealed that blocks such as Rajnagar, Madhawapur and Madhepur had larger number and area of private ponds. On the contrary blocks such as Pandaul Ladaniya, Babubarhi, Khajauli, Harlakhi, Basopatti, Jhanjhapur, Ghoghardiha, Andhra Tharhi and Laukahi had larger number and area of government  ponds.

As may be recalled, the government pond is given on lease to Secretary Fishermen’s Co-operative Society for one year period only by the district administration at

 prescribe rates. The Secretary in turn would sub-lease the pond to its members either  in group or individually for one year at higher rates. However the field investigation revealed that third party lease of ponds by members of the Fishermen’s Co-operative Society was common. Besides, the current lease arrangements of government ponds were revenue neutral and promoted large intermediations at the cost of depriving the real beneficiaries. It also promoted conflicts often leading to violence and not use of  water resources. It also augmented lease cost of ponds, forcing Makhana growers to  borrow at high rate of interest from informal money market, mostly the wholesalers. Instance of government ponds not being leased on account of being declared idle was also observed in certain cases. All these reflect the fact that the tank/pond resource which

is

so

crucial

for

the

cultivation

of

makhana

is

inflicted

with

institutional/legal/structural rigidities, jeopardizing and hampering the cultivation of  makhana guris in the district.

iv Level of Technological Use

Cultivation of Makhana guri was pure traditional with absence of modern agronomical practices. There was hardly any improved seed variety of Makhana. The same seed, which was left in the pond or couldn’t be harvested, germinates again in the next year, often with high density. The growers would re-paint them, if so required, in case the growth of makhana plant is sparse or dense. The application of  chemical fertilizer was absent. Further, the Makhana plant would often get pest attacks. Farmers were found to use least of chemical pesticides and depend heavily on natural treatment like application of rakh/ash. In some cases, where the pond size was large, the farmers applied roping/netting techniques such that the pests/genus fall down to the ground from the Makhana leaves. With virtual absence of chemical fertilizer/pesticides Makhana cultivation in the districts were organic based.

Harvesting of Guris was done manually often with high health hazard and life risk. In one village, a farmer narrated that while collecting guris from underneath water, once the fish entered the nose of a driver (boy) and he died instantly. The harvesting would   be done using some tools made of bamboo sticks known as gaaza, which wouldn’t last a single season with its intensive application. It could thus be summed up that the Makhana cultivation lacked use of improved technological and agronomical practices. Again, processing of Guri into Makhana pop is done manually, mostly by the female folk, which is hazardous to health and involve high degree of drudgeries, as they have to work constantly before fire. The process of hammering the heated Guri is also hazardous and at the same time it leads to wastage/loss of Makhana pop, as seeds, if  fallen out of the flat wooden platform become thurri of low quality lawa/pop.

v Productivity Levels

In the absence of new agronomical and technological practices, the productivity level of Makhana seed/guri as well as makhana pop much low in Madhubani district as compared to technical potential as also those in Purnea district. It was around 9.5 quintals/acre for Guri and around 3.8 quintals/acre for Makhana pop in 2005-06. Again, the productivity level of Makhana Guri was higher for larger size ponds as also size of capital and vice versa. It was largely because the higher size ponds owners invariably used and employed larger capital for pest control measures as also for re-plantations, which, in turn, augmented yield level of guri production in such   ponds. The case of makhana pop, however, didn’t show any significant variations across different size categories of capital employed in the procurement of raw guris or  makhana seed. This was largely because the processing of guri into makhana pop was invariably done through the same technology.

However, the recovery rate of Makhana from guris was significantly influenced by the quality of guri/seed and the skill of the processor. It was learnt in the field that smaller the seed better was the lava and vice versa. It was gathered that Makhana Guris grown in Katihar district with smaller size yielded better recovery rate in respect of Makhana pop. However, the skill for process of Guri and Makhana pop is

not commonly found everywhere. Even in Madhubani district among makhana community specialized in processing of Guris into best of makhana pop because of  their traditional inheritance of the skill, mostly by the female folk.

vi Economics of Makhana Cultivation

Details of the economics of Makhana (Guri) cultivation and Pop Processing including gross income, operating cost and net income for different size categories of  Makhana pond growers/Processors/ Market Prices etc are presented in the Tables 1-6.

Table 1: Economics of Makhana (Guri) Cultivation on Own Pond per acre. Sl.no.

Particulars

Qtls/Rs.

A)

Output

i)

Guri/Seeds qtl.

10.5

ii)

Farm gate prices of Guris (Rs.Kg)

15

iii)

Gross Income from Guri Production (Rs.)

15,750

iv)

Income from small fishes

1000

Gross Income

16,750

B)

Operating Cost

i)

Pond lease rent/cost

----

ii)

Plant/seed materials

----

iii)

Water filling

1850

iv)

Water Draining

----

v)

Pest Treatment

----

a)pesticides  

---b)Netting Roping

----

c) Application of Ash

300

vi)

Chemical Fertilizer

----

vii)

Manure

800

viii)

Labour Cost

----

a) Replantation

500

 

b) Harvesting of Guri

2,850

c) Transportation of Guri

100

d) Drying of Guri

225

e)Watch and ward

----

ix)

Interest paid on borrowed funds

x)

Depreciation of Fixed Capital

----

Total Cost

6,625

Net Income (A – B)

10,125

C

Table 2: Economics of Makhana (Guri) Cultivation on Leased Pond per acre. Sl.no.

Particulars

Qtls/Rs.

A)

Output

i)

Guri/Seeds qtl.

10.5

ii)

Farm gate prices of Guris (Rs.Kg)

15

iii)

Gross Income from Guri Production (Rs.)

15,750

iv)

Income from small fishes

1000

Gross Income

16,750

B)

Operating Cost

i)

Pond lease rent/cost

4500

ii)

Plant/seed materials

----

iii)

Water filling

1850

iv)

Water Draining

----

v)

Pest Treatment

----

a)pesticides

----

b)Netting Roping

----

c) Application of Ash

300

vi)

Chemical Fertilizer

----

vii)

Manure

800

viii)

Labour Cost

----

a) Replantation

500

 

b)Harvesting of Guri

2,850

c) Transportation of Guri

100

d)Drying of Guri

225

e)Watch and ward

----

ix)

Interest paid on borrowed funds

x)

Depreciation of Fixed Capital

----

Total Cost

11,125

Net Income (A – B)

5,625

C

Table 3: Price spreads of Guri Seed and Makhana Pop (9 kg/bag) in Katihar

Makhana SR.

Guri/Seed

Agency/Levels

No.

Price

Sl. No Agency/Levels

(Rs./Kg)

Price (Rs./Kg)

1

Farm Level Processor

55-60

1.

Farm Level

15-20

2

Area Level local Traders

60-70

2.

Traders

20-25

3

District Level Wholesalers

90-100

4

Inter-State Level Wholesalers

100-125

5

Metro – Retailers

150-175

6

Export Price

750-900

7

Retailers a) Season  

8

110-130 b) Off-season

140-170

Consumers a) Season

120-140

b) Off-season

160-200

Table 4: Wholesale Price of Makhana during 2005-06 at Katihar (Rs./kg.)

SR.

Particulars

Season

Off-season

i)

8 kg Gunny bag

110

125

ii)

9 kg. Gunny bag

100

120

iii)

10 kg Gunny bag

90

110

iv)

11 kg Gunny bag

80

100

v)

12 kg Gunny bag

70

90

No.

Evidently, the net income from Guri cultivation ranged from Rs. 5625 to 10,125 per  acre, depending upon the nature and size of the pond. The net income was higher for  large pond growers and vice versa due to integrated fish Makhana culture as also scale and price advantage. The net income increased significantly as a result of value addition due to processing of guri into Makhana pop. Lease cost of pond formed the major chunk of 30 – 40 the total cost, followed by expenses towards labour for Guri harvesting and procurement. Application of chemical fertilizer/pesticide was almost absent. Income return ratio over cost ranged between 32 – 56% for Guri cultivation. Value addition due to pop processing ranged between 70 and 105 per cent of the base Guri production. Price loss due to tagged sale was around 10 per cent. Employment generation per quintal of Guri worked out to around 7 person days. The same increased to 17 person days in the event of pop processing.

vii. Price Spread

Prices of Guris as well as Makhana pop varied widely across seasons as well as regional locations. For Guri with 95 % of arrival concentrating between August to October its prices during peak season remained low in the range of Rs.15 – 20 /kg. It

reached almost Rs.20/kg by December. It is hoarded mostly by the wholesalers in Madhubani, Darbhanga, Katihar and Purnea. Within the season, it varied albeit marginally, across different locations/blocks in the district. It was relatively higher in such regions/blocks where the concentration of Guri cultivation was higher as the wholesales had scale advantage in such region and therefore offered to pay higher   prices of guris in such blocks. Price of Guris also showed to fluctuate widely across year, often influence by the prices of Makhana pop which was by and large determined by the wholesales in Kanpur, Delhi and Varanasi, as it was those trades who commanded and absorbed most of the demand of Makhana pop which was by and large determined by the wholesaler had scale advantage in such region and therefore offered to pay higher prices of guris in such blocks. Prices of Guris also showed to fluctuate widely across years, often influenced by the prices of Makhana   pop which was by and large determined by the wholesales in Kanpur, Delhi and Varanasi, as it was those traders who commanded and absorbed most of the demand for Makhana pop.

During 2002-03 in the absence of adequate demand absorption by the local wholesales, prices of Guris remained depressed. Price of Makhana pop also showed seasonal fluctuation. At the farm level, it remained as low as Rs55/kg in August, reaching a level of Rs. 110-120 in the month of January –February. However with most of the sale transactions by the grower during September – October the average   price of Makhana pop at farm gate i.e. processors level was found to be Rs 65/kg only. At the wholesale level the average price at Madhubani was in the range of Rs 110-120/kg for 10kg, makhana gunny bag. The wholesale price at Kanpur and New Delhi ranged at around Rs 150-160/kg. It was still higher for 8 and 9kg makhana bag due to better quality of pop. It included transportation cost as also the commission and miscellaneous expenses. At the retail level price of the makhana pop at different centers like Delhi, Mumbai and Kolkata ranged between Rs. 170/kg -180/kg. With the emergence of a few makhana pop processing units at Patna, Katihar, Darbhanga and Madhubani, the price of makhana pop at the farm level as also at the wholesale level has improved in recent years.

viii. Sources of Fund and Interlinked Transactions

Given the absence of investible surpluses, the Makhana growers and processors needed credit support at several stages. The first such need is at the time of taking  pond on lease. The second stage of availing credit is when the growers spend on pest treatment

or dewatering or water filling or ponds. In some cases they need credit

support even for harvesting purposes when the payment of wages is made in cash. As  processing of Guri into Makhana pop is village specific some of such village persons would take up Guri processing into makhana pop as a full time enterprise and acquired guris from distant places such as Purnea, Katihar, Assam and Nepal. They also hire skilled labourers on daily basis for the duration of makhana pop season. Such traders cum processors also need large credit support for collection/procurement of Guris/Makhana seeds. However the institutional credit support is by and large absent, except those given under SGSY scheme. As a result the Makhana growers and  processors have to depend heavily on the local moneylenders and wholesale traders in their respective districts for sourcing their fund needs. The wholesalers in Madhubani would also outsource such fund support from wholesale traders in Kanpur or Delhi. For such credit support the wholesale trader at Madhubani would charge an interest rate from the farmer/processor in the range of 5-8 % p.m. while the traders at Kanpur  and Delhi would charge an interest rate of 3-5 % per month from Madhubani wholesale trader. In addition to paying high interest rates, the grower/processor would  be required to tag sale of their Makhana Guri or pop to such traders only at a price normally Rs.5-10 less than the prevailing market prices. More important element of  under weight at the hands of wholesale trader was also reported in the range of 1015%.

Thus

due

to

interlinked

credit/product

transactions

the

Makhana

growers/processors were making explicit loss by 10-15% due to underweighting and tagged sale. The exorbitant interest, ranging between 60 to 90 % per annum further  robbed their due share.

ix. Existing Market Channels

As may be recalled, there are three distinct stages in Makhana cultivation and trade. In the first stage Guri/ Makhana seed is cultivated by the growers in stagnant   ponds/tanks and is sold to the wholesaler or the processor. The wholesaler, in turn gets them processed into Makhana pop on contractual basis from some to the households from Machhuara community excelling in popping up of Makhana. The contractual arrangement is that the wholesaler would give three quintals of  Guri/Makhana seed and the processor would give him back one quintal of Makhana  pop. In excess of one quintal is retained by the processor as wages. Wages are thus in the range of 12 to 15 kg per quintal of processing Makhana to the wholesaler. In some cases the wholesaler or the processor would obtain Makhana to the wholesaler. In some cases the wholesaler or the processor would obtain Makhana guris through local agents from distant places by paying a margin to such local traders.

The Makhana Pop is traded at different levels. Mostly it is from Makhana processor  to wholesaler under tagged arrangements. Sometimes the processor would directly sell to retailers. However this kind of trading is restricted to the local areas only. The few wholesalers in Madhubani would purchase Makhana pop directly from the growers/processors. In some cases they get it processed on contact basis from   processors and will hoard the pop in their person storages. They would sell to wholesaler in Kanpur, Delhi, and Varanasi etc. as and when the trading is agreed upon. The wholesale traders in Madhubani have also credit-cum-product inter-linkage in their transactions with wholesalers in Kanpur, Delhi, and Varanasi etc.

x. Storages/Godowns

Storages for two different products, viz, Guri and Makhana pop are required in makhana trade. At the farmer’s level the guri is stored in an indigenous manner with construction of temporary structures in their homes. In that, they would construct a temporary pucca platform of required dimension with small bunding from different sides. They would spray water regularly to avoid drying of the Guri seed. This   process continues till the guri is processed into makhana pond in case of the wholesale trader since they hoard larger quantity of guri, the size of their storage

structure is larger but they also follow the same technique of spraying water from time to time during the day to avoid drying of the Guri seed which will adversely affect the quality of makhana pop. In the absence of any systematic storage arrangement which could control the temperature and avoid labour cost, the farmers did express difficulties of storage and felt the need for some storage arrangement.

In the case of Makhana pop since it occupies more space the farmer would simply store it in gunny bags and put them on some raised wooden platform in their own houses. Since the makhana pop is completely dried, it is not affected by extreme temperature and the humidity levels. Rat menace was commonly complained by the farmers. At the wholesale level in Madhubani, the Makhana pop was stored in gunny  bags, placed in large pucca storage house owned personally by the trader.

xi.

Transport Connectivity and Accessibility level

From ponds to the farmhouse, guri was often transported manually by small pond cultivator. However in the case of large pond cultivators, they used tractors owned or  hired. Small traders used bullock carts and horses for local transportation. The traders collecting guris from far-off places used small trucks, vans or rail links for  transportation of guri from one place to another.

The transport of Makhana pop form village to wholesale trader or from one wholesaler to another wholesaler in the town was mostly on tyre carts or tractors. Given the poor road conditions and village connectivity, it looks almost the whole day for the grower/trader in distant villages to cover the distance of 15-20kms. In the case of transportation from Madhubani to distant places like Kanpur and Delhi it was mostly transported through railway where the charges were made on volume basis, which inflated the cost of transportation significantly. In the absence of direct broad gauge link from Madhubani to other destination, it involves charges of goods at Darbhanga creating delays in delivery of goods. It was also transported through trucks to longer destination which involve higher transport cost.

xii Risk Hazards

Makhana cultivation was exposed to several risk hazards. Production less due to drought and flood was the most serious risk hazard. One flood will sweep away the entire standing makhana plant adversely affecting the output by 50 to 60 per cent. Price risk was still worse. Seasonal fluctuation as well as yearly fluctuation in the   price of Makhana pop was also large de motivating the Makhana growers and adversely affecting area as also productivity levels of Makhana.

xii.

Legal Environment

The production and trade of Makhana Guri and pop fell under the ambit of several legal acts/provisions viz. Agricultural Produce ( Grading & Marketing) act 1937 and 1986 ; production of Food Adulteration act1954 , 1964,1976,1986; Standards of  Weights and Measures Act 1976; Consumer Protection Act 1986; Bureau of India Standards Act 1986 and Food Product Order 1955, 1977. However the application of  these acts in Makhana production as well trade was completely absent. The farmers were free to sell their output to any one at any place. Similarly, the wholesalers were freely trading Makhana pop.

xiii.

Value Addition

Makhana pop is consumed mostly in raw pop form with different end uses. The secondary processing of Makhana pop into snacks food or any other product was almost absent, as only few small Makhana processing units at Madhubani, Katihar  and Patna were operating with small capacity. Once of them has been closed for  variety of reasons. The other one is making a modest business. With not even one per  cent of Makhana pop being used for secondary processing into snacks food, etc. the value additions through secondary processing in Makhana was almost negligible.

Table 5: Conversion ratio of Guri into Makhana acceptable of Wholesale Processors /Traders

S. No.

Quantity

of Acceptable quantity of Makhana

Balance

Makhana

as

1

Guri

to Wholesale processors

kind was the processor

120 kg

40 kg. (1/3)

9.11 kg

FLOW CHART OF MAKHANA PROCESSING Makhana Seed – Moisture 37% (As per fresh weight) ↓

Sun Drying – Moisture 31 % ↓

Storage (Water spray at few minute intervals) ↓

Grading as per size ↓

First Roasting (till moisture 20.8 %) ↓

Keeping at Room temperature for 40-60 hours ↓

Second Roasting (till moisture 10-12 %) ↓

Breaking of Seed Coat by Thaapi ↓

Separation of Pop and Seed ↓

Grading of Pop as per size ↓

Packaging in different size gunny bag (9-15 Kg) ↓

Marketing/Trading xiv) Production of Makhana - Guri and Pop

Bihar accounts for over 85 per cent of the Makhana production of the country which resulted into thrust area for taking up the task and identifying the constraints in the export of Makhana from the state. Though data regarding exports are not available, as  per a rough estimate 50,000 tonnes of Makhana worth Rs 250 at farm gate and 550 crores in market are produced annually. xv) Segments of Demand Absorptions

The data on the existing end-use of Makhana pop by segments as is not available whereas it is assumed that its current consumption, absorption is more in socioreligious functions as also sweetmeat and industrial use. Its presence in the export market is virtually absent. Value addition or high product innovations are not common and its promotion is required.

xvi) Demand projection of Makhana

However going by the perception of the Makhana pop processors as also wholesalers, the potentials to enlarge its demand absorption in export as well as snacks food and  pharmaceutical segments in the domestic market seem to be large. This is on account of the fact Makhana is essentially an original product with good dietary and medicinal   properties to generate adequate export demand particularly in the European and American Countries. More important the initial experience of making pop processor  at Patna in the form of snacks food production as well as pharmaceutical products viz.  protein powder (Horlicks) is quite encouraging. It is felt that even if it capture 10% of  the existing snacks and horlicks market it will absorb a large part of the Makhana pop  production. According to rough estimation it is expected that in the ensuing years the demand for Makhana pop would remain stagnant for socio-religious functions as also

sweetmeat industry. But it may witness 100-200% growth in the snacks food segment as also pharmaceutical, medicinal and export segments.

CHAPTER IV

RECOMMENDATIONS



Integrated Fish cum Makhana Cultivation should be promoted which will  play vital role in livelihood enhancement of poor Makhana growers.



Good Agricultural Practices as recommended by National Research Centre, Darbhanga should be promoted through cluster based approach.



Mechanization of harvesting, post harvesting and processing is required.  NRC has already developed mechanized system of makhana pop processing which will be started in coming few months.



Institutional credit facilities at two intervals such as during leasing of   pond/land and irrigation are required.



Training/Capacity building on makhana processing specially from guris to  pop is required.



Contract farming based on centralized model may be adopted. As the   processor buys the commodity from a large number of farmers under  contract with the firm.



As there is very less application of chemicals and fertilizers so this crop can  be taken as Organic produce and its promotion is required accordingly.



The Agri- Export Zone Hazipur, could be widened to include export   promotion of Makhana products as well under partnership of makhana growers/processors, value adding processing firms to get fiscal incentives in terms of tax concessions under the schemes of government of India.



The traders/wholesalers/retailers are not aware about the procedures of  export. So, training for creating awareness regarding the export  procedures/ISO certification etc is required.

ANNEXURES

Annexure I

:

Schedule of Makhana growers interviewed.

Annexure II

:

Schedule of Traders interviewed.

Farmers Schedule

1.  Name of Farmer: 2.  

Name of village: -

Taluka

District

3. Area under Makhana 4.  Name of the variety grown 5. Year of plantation 6.  Number of years production taken 7. Yield of Makhana Sr.  No.

Year

1 2 3 4 5

2006 2005 2004 2003 2002

Area in Ha.

Total Yield / Production ha Kg.

Production Rate Sold (Kg) Rs./ Kg

9. Packing material used:-

10. Cost of Packing Material

11. Storage facility

12. Transport facility

13. Places of marketing

14. Name of traders and their address to whom you sell your produce?

Total Income (Rs)

15. Have you direct contract with traders?

16. Are you exporting makhana or through traders/associations?

17. If yes, Name the trader/association.

18. Have you entered contract farming with traders?

If yes, what are terms and conditions:-

19. Price received for the last five years?. Sr. No. 1 2 3 4 5

Year Domestic Price Export price 2006 2005 2004 2003 2002

20. Have you received special instruction from Exporting traders about makhana cultivation< if yes, please specify

22. Cultivation practices adopted by the growers (Discussion).

EXPORTERS/ TRADERS SCHEDULE A. Exporter’s Profile:

1.(a) Name: (b) Address:

(c) Tel: (d) Fax: (e) email: 2. Year of Establishment: 3.Legal form of the Unit/ Ownership: Corporate (1); Partnership (2); Proprietorship (3); Co-operative (4).

4.(a) Name of Contact Person: (b) Designation: (c) Personal Tel. No., if any 5. Horticultural Exports: (Major Horti. Produce Exported)  Mango (1); Grapes (2); Orange (3); Banana(4); Other fruits - specify -------- (5) Onion (6); Other Vegetables, Specify ------- (7);

B. Export details:

6. Trends in Makhana Exports (For last 5 Years) 2002-03

2003-04

2004-05

1. 2. 3. 4. Sub-total 1. 2. 3. 4. Sub-total 1. 2. 3. 4.

Sub-total 1. 2. 3. 4. Sub-total 1. 2. 3. 4. Sub-total

2005-06

2006-07

7. Seasonality of Exports (a). Do you have seasonality in Exports?

Yes (1); No (2).

(b) If Yes, Specify the period/s of    Name of Country Exports  Jan (1); Feb (2) ……… Dec (12). 1 2 3 4 5

Period (from - to)

8. (a) Demand of Makhana in Export Market: -

Sr. No. Month 1

January

2

February

3

March

4

April

5

May

6

June

7

July

8

August

9

September 

10

October 

11

November 

Name of the countries

Name of competing countries

12

December 

8. (b) Varieties of Makhana having Demand in Export Market: Sr. No.

Name of the Countries

Name of Varieties

9 . Procurement of Makhana

Main districts from which pomegranates procured (a). Name of District (c). Quantity procured (in M Tons.) (c). Annual Value (in Rs Lakh) (d). Whether supply adequate (Y1/N) (e) Whether quality is good

(f) If not, please specify why and the measures taken to acquire uninterrupted supply.

(g) Please enumerate problems in procurement

(h) Quantity of exportable makhana from total quantity purchased / Procured.  ________________________________________________________________________   ________________________________________________________________________   ________________________________________________________________________   __________________ 

C. Financial Information

I.

Source of Finance

Particulars

(in Rs.) March 200405

March 2005-06

March 200607

Paid Up Capital Borrowing (i)Institutional sources (ii)Non-institutional sources Any other  II.

What are the problems faced by you in getting finance facility from financial institution

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ______________________________ III.

Cost Structure for Makhana Exports (in Rs.)

Cost Variable Cost Raw Material i) ii) iii) Labour  Utilities (Power, Water, etc) Packing Materials Maintenance Fixed Costs

March 200405

March 2005-06

March 200607

Transport Loading and unloading Selling & Distribution Costs

Taxes Clearance Others: Total Costs

D. Export Channels

10 (a) Do you sell makhana under your brand name? Yes-1; No-2. (b) If No please mention the name of the company for whom the fruits are exported: 11. Marketing Strategy Overseas:  Export trading house (1); Overseas Importers / Distributors (2);  Importing Agents (3); Foreign Processing units (4); Own Office (5).

12(a) Has your export strategy undergone a major change during the last five years? Yes- 1; No- 2. (b) If yes, please indicate the changes and reasons for the change.

13. Please give break up of average FOB export selling price in percentage. Head

a. Raw Materials  b. Processing Costs c. Packaging Costs d. Transportation e. Logistics excluding transportation f. Marketing and overheads

E. Awareness on WTO and its Impact

After WTO ( 1995-2007)

14(a) Are you are aware of the agreements/ regulations under WTO? Yes-1; No-2. (b) Are you aware of standards applicable in importing country/ies? Yes-1; No-2 (c) Are you aware of Codex Standards? Yes-1; No-2 (d) Are you aware of Hazard Analysis at Critical Control Points (HACCP)? Yes-1; No-2 (e) Are you aware of ISO 9000 and ISO 14000? Yes-1; No-2

14(b). The impact of WTO agreements on Makhana exports: Areas of Impact

Agreements/ Regulations having impact

Impact

Exports Exports realizations Technology in use Prices realised Procurement cost of  fruits Quality of fruits

14(c) What has been the impact of changes in import tariff on your cost structure,  post-WTO? Cost has gone up (1); Cost has gone down (2); No change in cost structure (3).

15. Constraints faced for growth of exports of Makhana from India: Parameters I. Raw Material Demand & Supply II.Quality

III. Technology

Constraints

Suggestions

IV. Cost competitiveness

V. Quantity

VI. Market development

VII. Financial

VIII. Logistics / Infrastructure Pre-cooling Storage: Farm Cargo Export terminals In-land transportation Cargo terminal facilities Air/Sea freight charges IX. Legal

X. SPS / Certification and testing XI. Government  policies

XI Importing Countries  policies

XII. Specific Trade Barriers XIII. Taxes / Cess

XIV. Quota. XV. Commission. XVI. Country Preference. XVII. Any other, specify   Note. Suggestions should be made indicating specific measures that are necessary to improve export performance like Raw material quality and pricing, Technology upgradation, Training needs (under Human Resource), Generic advertisement,   Infrastructural support, Market Information (all under Market Development), Technology up-gradation fund (under Financial), Simplification of Procedures of  obtaining various certificates (under Legal), Needs for Subsidies / Government  intervention (under Government) etc.( Special sheet may be attached if space is limited)

16. Threats facing the sector as a result of various agreements/ regulations: Threats (i). Availability of low-cost makhana in the export markets (ii). Increased flow of foreign investment in importing country / other exporting country (iii)Rejection of exports due to non-tariff barriers and TBT like child labour, environment issues and obsolete manufacturing standards (iv). Free imports of products reserved for   production in SSI sector  (v). Others (specify)

Measures taken

17. Opportunities opened for your sector as a result of liberalization: Opportunities

Advantages availed of/ likely to

be availed (i). Availability of cheap raw materials from outside (ii). Easy import of modern machineries & equipments (iii). Widening of international markets (new export markets) (iv). Increased flow of foreign investment (v). Others (specify)

18. Effects of WTO agreements on exports ( Sales trend in export markets in (Name/s of the country) during post-WTO regime Upward (1); Downward (2); No change (3).

Country 1. Country 2. Country 3.

19. Which countries are offering strong competition to makha na export Competitors

In export market

I. II. III. IV.

2o. Measures taken/ being planned to be taken by you to overcome the impact of WTO agreements in domestic and export market: Product In export market

I. II. III. IV. V.

Agreement

Countries involved Countries where affected

Measures taken

(Select the Measures taken/ being planned to be taken from the following and elaborate) (i) (ii) (iii) (iv) (v) (vi) (vii) (viii) (ix) (x) (xi) (xii) (xiii) (xiv)

Enhance competitiveness Upgrade technology and modernize Expand capacity to reach optimum levels Improve quality of products and acquire quality certification Invest more in R&D Diversify into other related products Bring about backward integration Enter into strategic tie-ups with large indigenous companies/ MNCs Adhere to stricter environmental standards Compliance with proper labour norms Enter into marketing arrangements with companies based a broad Merger with other to withstand competition. Reduce cost of production Others (pl. specify)

Please elaborate:

21. (a)Do you feel that your foreign competitors are enjoying certain advantages which give them an edge? Yes-1, No-2. (b) If so, what are the advantages?  Economies of scale (1); Availability of modern technology (2); Government  subsidies and protective policies (3); Cheap and easy a vailability of raw material (4) Advanced packaging (5); Grading and standardization (6); Organized  marketing network (6); Others (specify) (7)

(c)If you think that you are having advantages over them, specify them: Cheap labour (1); Cheap raw material (2); Indigenous low-cost technology (3); Other (specify) (4)

(d). What are the disadvantages you are facing in post-WTO era/  Regulatory measures in foreign importing countries (SPS/TBT) (1); Price Competition (2); Others (specify) (4).

22. Quality Standards

Quality specific Parameters set out by importing countries. Sr. No. 1 2 3 4 5 6 7 8

Particulars Size Colour  Packaing Storage Chemical Residues Test Trade Mark  Certificates

Quality Standards

(a) Do importers specify quality standards? Yes- 1, No- 2. (b) ) If yes, have you applied the method? Yes- 1, No- 2. (d) If No, Constraints and reasons: Cost constraint (1); Documentation hazards (2); Inadequacy of service providers (3);  Not required (4); Others (5).

(c) Have you applied for ISO certification? Yes- 1, No- 2. (e) Will implementation of the regulations as ISO 9000 / ISO 14000 /HACCP / SPS have the following effect? (i) Increase in Cost of exports: Yes- 1, No- 2., (if yes, by %) (ii) Increase in Capital Investment: Yes- 1, No- 2 ., (if yes, by %) (iii) Decline in Capability of Investment: Yes- 1, No- 2 (iv) Backward integration for procurement: Yes- 1, No- 2 (v) Increase in export: Yes- 1, No- 2 (vi) Increase/ decrease in prices of products processed: Yes- 1, No- 2 (vii) Competitiveness: Yes- 1, No- 2

23. Certification of Products exported: (a) Do you undertake Pre-export certification? Yes- 1, No- 2 (b) Is number of existing certification agencies adequate? Yes- 1, No- 2 (c) ) Name of your certification agency Location (d) Do you regularly test exportable fruits/products? Yes- 1, No- 2

(e) Average annual cost for product certification:

Rs. ton

Lakh/

(f) What do you think about the certification cost? High- 1, Reasonable- 2. 24. Packaging and Storage Regulations: (a) Has there been a change in packaging material utilized in view of stricter  environment laws in importing countries? Yes- 1, No- 2 (b) How the improvement was effected? Through domestic availability (1); Through imports (2).

(c) Rise in annual cost of production due to these changes (in percentage) (d) Please indicate the nature of improvement, if any. Packaging Material used Traditional Improved

Packaging techniques Traditional Improved

Annual average cost/ year Traditional Improved

25. What changes have you made in your production processes, work conditions, storage arrangements, packaging of makhana to meet the international environment standards? a.  b. c. d.

26. Specify strengths/ weaknesses that would assist / hamper due opening of world markets. Strengths

1. 2. 3. 4.

Weaknesses 1.

2. 3. 4.

F. Requirement of Assistance from Government and other agencies

27. What are the measures (including policy initiatives), you feel, should be taken from the part of the Government to boost exports:

28. Please elaborate on what specific help you expect from APEDA to become competitive in the international market.

29. What type of assistance/ infrastructural support/ common facilities do you expect in order to face the challenges: (Please rank the main parameters enumerated as (a) to (j) alphabetically i.e., A-J and sub-parameters enumerated as (i) to (v) numerically i.e., 1-5 in the order of importance) Type of Assistance

(a) Financial assistance for capacity expansion/ technology upgradation/

Order of  Importance

export with (i) Higher quantum of finance If required, pl. indicate: Purpose: Est. Year: quantum: (ii) Reduction in interest rate (iii) Longer repayment period (iv) Special financing scheme related. (v) Any other (specify) (b) Timely availability of adequate quantity of fruits (c) Training (in) (i) Quality control measures (ii) Modern Packaging Techniques (iii) Product Development (iv) Information Technology (d) Availability of adequate and low-cost service of certification (e) Availability of low-cost modern packaging facilities (f) Reduction in excise/ customs duty for import of  (i) Raw Materials / chemicals (ii) Machineries (g) Simplified procedures for inspection and obtaining various certificates (h) Market related information (i) Tying up with large units/ Export houses (j) Any other (specify) (b). Please briefly state in what way the assistance on these can be given.

30. Any other comments relevant for the purpose: