Abstract
Horticultural crops being high value crops are important
in raising the incomes of the farmers besides creating
employment opportunities. Apple is one of the most widely
grown temperate fruit crops grown in Himalayas of Northern
India. Almost all the apples grown in India come from its
three mountainous states i.e. Himachal Pradesh, J&K and
Uttarakhand. The supply chain of apples, which is one of
the main temperate fruit crops of the Himachal Pradesh, is
laden with inefficiencies across the entire value chain
leading to poor price realization of growers on one hand
and exorbitant prices paid by consumers on the other. A
major share of this consumer rupee goes to a miniscule
number of market intermediaries who exploit the farmers
due to poor marketing linkages, virtually non-existent cold
chain infrastructure and processing facilities. The growers
still follow the age old cultivation practices and have no
idea of consumer needs and preferences, market prices,
various government schemes, scientific agronomical
practices especially agri-inputs, sources of timely and
adequate credit availability and market linkages. The apple
farmers of Himachal Pradesh suffer due to inadequate
infrastructure especially cold chains, absence of demand
forecasting and meagre value-addition. They also lack
information on scientific cultivation practices, market prices,
consumer preferences and market linkages. The purpose of
this research paper, as such, is to integrate the information
platform for various stakeholders and design an ICT enabled
apple supply chain that will benefit millions of apple
growers, processors, distributors, dealers, exporters of fresh
& processed apple products and above all consumers. The
study will also provide an action plan to the policy makers
and private players like HPMC and Adani thus creating
spin-offs which will stimulate social, economical and
sustainable development of India.
Research problem:
Apple is one of the most widely grown temperate fruit
crop grown in Himalayas of Northern India (altitude range of
2000 4500 meters). Almost all the apples grown in India come
from its three mountainous states i.e. Himachal Pradesh, J&K
and Uttarakhand (Exhibit 1).
*Dr. Mukesh Pandey is an Associate Professor College of
Agribusiness Management, G.B.P.U.A&T, Pantnagar
**Prof. B.K.Sikka is Dean, College of Agribusiness Management,
G.B.P.U.A&T, Pantnagar.
*** Sunil Panthari is working with IDBI Bank Ltd.
Himachal
Pradesh
Uttarakhand
Punjab
Haryana
Delhi
Rajasthan
Uttar Pradesh
Others
0.49%
Himachal Pradesh
29.61%
Jammu & Kashmir
63.38%
National Seminar 2009 on ICT for Agriculture & Rural Development, Arunachal Pradesh
Research objective:
Exhibit 2: Cold Storage Capacity in HP
Review of Literature:
Bandel, T. (2003) designed software called Produce
Manager to help agronomists report crop inspections and
production forecasts which can then be used for planning,
follow-up, control and traceability. Deodhar, S.Y. (2005)
studied the entire Indian apple value chain with respect to
trade costs, trade policies, trade volume and profit margins for
highlighting the transaction costs incurred by various
stakeholders in the apple supply chain. Silva, H. and
Ratnadiwakaray, D. (2008) analyzed the role of ICT in
reducing transaction costs in agribusiness by enabling timely
and affordable communication and identified the specific
information needs of the farmers along the agri-value chain
starting with the decision on the crop to be planted and ending
with the sale of produce at the wholesale market and measure
Research Methodology:
Results and Discussion
The state of Himachal Pradesh was selected for the study
and major apple producing districts of the H.P State viz.
Kinnaur, Solan, Kullu, Mandi, Kangra and Shimla (See District
Map of H.P) were surveyed in November 2008 and April-June
2009. These districts were selected as they account for more
than 80 percent of the total Apple production in H.P (Indian
Horticulture Database, 2008). Descriptive research design
was adapted to accomplish the objectives of the research.
The primary data were collected from 50 apple growers and
various intermediaries in the supply chain including
contractors, commission agents, wholesalers, cold storages,
transporters and retailers. Judgmental sampling used,
Pesticide / Fungicide/Fertilizer
Credit
Root stocks
Packaging Material
Agri-input Supplier
Grower
HPMC /
Corporate Buyer
Exporter
Pre-harvest Contractor
Growers
Cooperative
Harvester
Grader/ Packager
Processor
Forwarding Agent
Transporter
Commission Agent
Cold
Storage
Operator
Wholesaler/ Sub-wholesaler
Consumer
National Seminar 2009 on ICT for Agriculture & Rural Development, Arunachal Pradesh
demand for apples, thus sustaining the entire apple value chain.
3. Problems faced by stakeholders in apple value chain:
Exhibit 4: Marketing Costs, Intermediaries Margins & Farmers Realizations-Nov 2009 (Rs per apple box of 20 kg)
S.No.
1
2
3
4
5
6
7
8
9
10
11
Particulars
Net price received by apple grower
Expenses incurred by apple grower:
i.
Picking, grading & assembling
ii.
Packing materials
iii.
Carriage up to road-head
iv.
Freight up to market
v.
Commission of Forwarding Agent
vi.
Loading/ Unloading charges
vii.
Commission of Commission Agent
Sub Total
Realization at wholesale market
Expenses of wholesale trader
Carriage and handling
Market fee
Sub Total
Wholesaler traders Margin
Sub-wholesaler purchase price
Sub-wholesalers Margin
Retailers Purchase Price
Retailers Expenses
Carriage and handling
Wastages
Sub Total
Retailers Margin
Consumer Price
5
Traditional Channel
350
14
50
4
23
3
3
34
131
481
3
5
8
86
575
105
680
7
63
70
250
1000
National Seminar 2009 on ICT for Agriculture & Rural Development, Arunachal Pradesh
Intermediaries
Margin
44%
Growers Reaslisation
35%
each and every grower, past trends in apple demand and supply
etc. A virtual private network (VPN) can be used to establish
secure intranets and extranets. Broadband with a data
transmission speed of at least 2mbps or a VSAT connection in
the remote location would be required to establish a network.
Block level ICT
enabled Hub
State level
ICT enabled
Hub
District Level
ICT enabled
Hub
Village level
ICT enabled
kiosks
Village level
ICT enabled
kiosks
Village level
ICT enabled
kiosks
Village level
ICT enabled
kiosks
Growers
Grower/
Grower s
Cooperative
Internet
ICT
Enabled
Kiosk
Extension
Agency
State
Horticulture
Board
DATABASE
Internet
Post-harvest
Equipments
Suppliers
Transport Agency
Local- FM
radio station
Exporter
Internet
Packaging
Material Factory
Forward Flow
Backward Flow
Secured extranet
National Seminar 2009 on ICT for Agriculture & Rural Development, Arunachal Pradesh
How to
tackle
Pest
attack?
Insurance Schemes
Scientific agri-practices
Value- additions
STATE
Sources of agri-inputs,
packing and credit
Demand &
information
LEVEL
ICT
HUB
Consumer need
preferences
&
Market linkages
Demand forecasting
price
Cold
infrastructure
Chain
Govt.
Schemes
&
Subsidies
Conclusion:
The multiplicity and complexity in the apple value chain
makes it difficult to streamline the value chain. Apple growers
of Himachal face problems of timely and accurate information
about market prices and demand, source of credit and other
agri-inputs, lack of knowledge scientific agri-practices, market
linkages, changing consumer tastes & preferences and
Government schemes & subsidies. The proposed ICT
application system will help in disintermediation of apple value
chain by providing a common information sharing platform to
growers and buyers and make the apple value chain more
efficient in terms of its key deliverables. The government of
Himachal Pradesh, through its agricultural agencies and
departments, must initiate collaborations with various partners
and draw a time-bound implementation plan for establishing
the proposed ICT application system. A Public Private
Partnership (PPP) model, where the government would share
manpower, financial resources and logistical needs and a
Private organization would operate and maintain the ICT
application system on a commission basis, would be a
promising idea worth exploring. Cross functions team
comprising of apple growers, implementing partners, other
stakeholders like controlled atmosphere providers,
transporters, researchers, IT service providers should be
created to ensure proper understanding the nuances of apple
value chain, inter-functional coordination and for expediting
ICT implementation of the apple value chain.
National Seminar 2009 on ICT for Agriculture & Rural Development, Arunachal Pradesh
References
1)
Bandel, T. 2007. An Integrated IT Management System to Provide Full Product Traceability from Field to Overseas Market. Retrieved from
http://www.globalfoodchainpartnerships.org/cairo/papers/TobiasBandelSekemEgypt.pdf.
2)
Deodhar, S.Y. 2005. Trade Cost, Trade Policy and Trade Volume: A Study of IndianApple Market, IIM-A Working Paper # 2005-08-01.
3)
Government of India. 2003. Status of Apple Processing Industry in India.A Report of Ministry of Food Processing Industries.
4)
Government of India.2008. Report on Task Force on Development of Cold Chain in India. A report of Ministry of Agriculture.
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Hobbs, J.E. 1996. A transaction cost approach to supply chain .Quorum Books. Westport, Conn, USA.
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Indian Horticulture Database, 2008. Downloaded from site http://nhb.gov.in. Retrieved as on 13-5-09.
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Silva, H. and Ratnadiwakara, D.2008. Using ICT to reduce transaction costs in agriculture through better communication: A case-study
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