MARKETING ANALYSIS OF VEGETABLES IN

KHORDA DISTRICT UNDER OCTMP

BY

ANKITA SUVASMITA
01ABM/14

Department of Agribusiness Management

Centre for Post Graduate Studies
Orissa University of Agriculture and Technology
Bhubaneswar-751003
2016
 MARKETING ANALYSIS OF VEGETABLES IN
KHORDA DISTRICT UNDER OCTMP
THESIS SUBMITTED TO ORISSA UNIVERSITY OF AGRICULTURE AND
TECHNOLOGY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR AWARD
OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

(AGRIBUSINESS MANAGEMENT)

BY

ANKITA SUVASMITA
01ABM/14

Department of Agribusiness Management

Centre for Post Graduate Studies
Orissa University of Agriculture and Technology
Bhubaneswar-751003
2016
 ORISSA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
DEPARTMENT OF AGRIBUSINESS MANAGEMENT
CENTRE FOR POST GRADUATE STUDIES (CPGS)

CERTIFICATE-I

Mr. Pandaba CharanMunda Bhubaneswar

Asst. Professor Date:
Agribusiness Management

This is to certify that the thesis entitled “Marketing Analysis Of Vegetables In Khorda
District” submitted in partial fulfillment of the requirements for the award of the degree of
Master of Business Administration in Agribusiness Management to the Orissa University of
Agriculture and Technology is a faithful record of bonafide and original research work
carried out by Ankita Suvasmita under my guidance and supervision .No part of this thesis
has been submitted for any other degree or diploma.

It is further certified that the assistance and help received by her from various sources during
the course of investigation has been duly acknowledged.

Chairman

Advisory Committee
 ORISSA UNIVERSITY OF AGRICULTURE AND TECHNOLOGY
DEPARTMENT OF AGRIBUSINESS MANAGEMENT
CENTRE FOR POST GRADUATE STUDIES (CPGS)

CERTIFICATE-II

This is to certify that the thesis entitled “Marketing analysis of vegetables in Khorda district”
submitted by Ankita Suvasmita to the Orissa University of Agriculture and Technology,
Bhubaneswar in partial fulfillment of the requirements for the degree of Master of Business
Administration (Agribusiness Management) has been approved/disapproved by the students‟
advisory committee and the external examiner.

Advisory Committee

Chairman:
Mr. Pandaba Charan Munda
Asst. Professor …………………...…………………………
Department of Agribusiness Management

Member
Dr. Samarendra Mahapatra
Professor & Head ………………………………………………..
Department of Agribusiness Management

Member
Dr. Debdutt Behura
Asst. Professor
Department of Agribusiness Management ………………………………………………..

External Examiner ……………………………………………………

 DECLARATION

I do hereby declare that the dissertation entitled “Marketing analysis of vegetables in Khorda
district” being submitted by me in partial fulfillment of the requirements for the Degree Of
Master In Agribusiness Management Administration to “Odisha University of Agriculture &
Technology (OUAT) ,Bhubaneswar” under the guidance of Dr. Debedranath Biswal, Odisha
Community Tank Management Project, BBSR. I further declare that contents of the report
are authentic & have not been published or presented earlier.

Place-

Date- Ankita Suvasmita

 ACKNOWLEDGEMENT
I owe many thanks to all the people who helped and supported me during the
preparation of this report.

On the successful completion of the project, I express my deepest sense of gratitude

towards OCTMP for providing me this golden opportunity of undergoing my project with
it.The experience at the organization has been quite enriching as it has not only augmented
my knowledge base but also given me the right exposure to the field conditions for applying
the knowledge practically.I take this opportunity to thank all those whose encouragement and
guidance has been instrumental in the successful completion of this project.

I take this opportunity to express my heart filled gratitude and special thanks to my
mentor Mr. Pandaba Charan Munda for his enlightened supervision, inspiring guidance,
generous assistance, valuable suggestion, critical comments, moral support and
encouragement during the entire course of study and preparation of this report.He has taken a
lot of effort to go through the project and make necessary correction as and when needed.

My special thanks goes to Dr. D. N Biswal, who played a critical role in this piece of
work.He supports me a lot and gives lots of idea to complete my project.

I am grateful to Dr. S. Mohapatra, Head, Department of Agribusiness Management,

O.U.A.T for his practical guidance and highly constructive comments during the entire
course of study and preparation of this project.

I express my thanks to Dr. Debadutta Behura, Assistant professor, department of

agribusiness management, O.U.A.T for extending his support.

My heartfelt thanks to the staff members of OCTMP for giving me such attention.

(Ankita Suvasmita)
 CONTENTS

SL.NO. CHAPTER

01 INTRODUCTION

02 REVIEW OF LITERATURE

03 MATERIALS & METHODS

04 RESULTS AND DISCUSSION

05 SUMMARY AND CONCLUSION

06 REFERENCES

07 ANNEXURE
 ABSTRACT
Marketing is an important activity for all farm enterprises, irrespective of size and place. It is
strongly recommended that one should identify the market before becoming an entrepreneur. Some
farmers such as cash grain farmers or daily farmers, have large well-established markets. However
Small-scale vegetables growers generally have more difficulty in finding established markets.

Vegetables are produced seasonally but the market requires products throughout the year. As
technology improved and consumer incomes increased, it becomes possible to provide fresh produce
round the year. There is also a strong demand for processed vegetables.

As the market is highly competitive, many of the small local processors have found it difficult
to compete with these corporations and have gone out of business. Over to past 20-30 years most
processors have moved their plants to major production areas. Only a few processing firms are left in
the Northeast considering processing special items with strong local or regional demand.

Selling processed vegetables may in addition increase the exposure to product liability suits.
Sometimes a small processor will process vegetables for a grower on a contract basis especially if the
product being produced does not interfere with its own processing requirements.
 INTRODUCTION

There has been a great concern in the recent years regarding the efficiency of
marketing analysis of vegetables in India. It is believed that poor linkages in the marketing
channels and poor marketing infrastructure are leading to high and fluctuating consumer
prices, and to only a small proportion of the consumer rupee reaching to the farmers in
khorda. The goal of a marketing analysis of vegetables in Khorda is to determine the
attractiveness of a market and to understand its evolving opportunities and threats as they
relate to the strength and weakness of the firm. There is also substantial wastage,
deterioration in quality, and frequent mis-match between demand and supply spatially and
over time. With growing demand and the accompanying supply response, vegetables have
assumed great importance. India ranks second in the world in the production of vegetables
and third in production of fruits .In this assumption Orissa rank 4th in cultivation of
vegetables. In Orissa khorda district is the highest vegetable producing district. Horticultural
crops are mostly labour intensive in Khorda and provide employment not only in production
but also transportation, processing and marketing. The marketing analysis of horticultural
crops is also quite complex and risky due to their perishable nature, seasonal production and
bulkiness. The analysis of marketing focuses particularly on the regulated wholesale markets
for vegetables, which have been established to overcome problems and improve the
marketing efficiency. The analysis examines aspects of the markets including their
infrastructure, functioning, marketing practices, as well as the value chain from the farmer to
wholesaler to retailer to consumer.In implementing the National Horticulture Mission‟s
programmes in the State, the Govt. will aim to achieve an integrated development of the
Horticulture sector with a balanced growth of its several sub-sectors. While area expansion
and enhancement of production and productivity of perennial fruits and non-perennial fruits
like mango, cashew, banana, spices, flowers & vegetables will form the core of the
programme; development of nurseries to support the area expansion, including creation of
infrastructure for infusion of modern micro- propagation technologies, and the development
of marketing & storage infrastructure, processing industries and proper market linkages will
also be aimed to be achieved. The endeavor will be to double the production of horticultural
crops in coming seven years. In the first place the attempt will be to minimize the import of
fruits and vegetables from other states and thereafter the marketable surplus will be organized
for export market.
ABOUT THE PROJECT

This project is undergoing through the guidance of Odisha Community Tank

Management Project (OCTMP) which is been conceptualize and operationalize by Odisha
Community Tank Development and Management Society (OCTDMS).

OBJECTIVES OF THE STUDY

The major objectives of the studies are:

1. To find out the number of farmers engaged in vegetable farming.

2. To identify the opportunities of vegetable farming as a source of alternative income.
3. To determine the farmers profitability in vegetable marketing.
4. To analyse the existing supply chain of vegetable in khorda district.
5. To study the role of horticulture in different vegetable market.
 LITERATURE REVIEW

HORTICULTURE IN INDIA
India‟s horticulture sector has grown in importance in recent years, partly because of
the many advantages horticulture crops have over field crops. The sector has received
focused attention in governmental planning from the 7th Five Year Plan period (1985 – 1990)
onwards. As a result, not only has horticulture production increased across India, but hi-tech
horticulture has also been recognized as a commercial proposition. Currently, horticulture
accounts for about 30% of India‟s agricultural GDP (from only 13% of the total area under
cultivation) and 37% of the total exports of agricultural commodities.

Both the area under horticulture cultivation and total horticulture production have
increased over the period 2005-06 to 2010-11, from 18.7 million hectares to 21.3 million
hectares and 182.8 million MT to 231.14 million MT respectively.

HORTICULTURE SCENARIO IN ODISHA

Due to the favorable agro-climatic conditions, Odisha enjoys a natural advantage for
growing a diversified basket of fruits, vegetables, spices, tubers and flowers. It also has high
potential for growth. Formed in 1977, the Directorate of Horticulture, Odisha promotes the
production of fruits, vegetables, flowers, mushrooms, medicinal and aromatic plants. In 2005
the Odisha Horticulture Development Society was created in tandem with the launch National
Horticulture Mission of 2005- 06. These initiatives gave the state the opportunity to develop
concentrated pockets of plantation, rejuvenate old orchards and create post-harvest and
marketing infrastructure. NHM programme in the state have focused upon i) area expansion
and enhancement of production and productivity of perennial fruits and non-perennial fruits
such as mango, cashew, banana, spices, flowers & vegetables; ii) development of nurseries to
support the area expansion, including creation of infrastructure for infusion of modern micro-
propagation technologies; and iii) development of marketing & storage infrastructure,
processing industries and proper market linkages.

As a result of these sustained efforts, there has been a significant increase in the area
under cultivation and production of horticulture crops over the past few years. In 2010-11, the
total area under cultivation of horticulture crops was 1.2 million hectares out of which fruits
accounted for approximately 26% and vegetables accounted for approximately 58%.8
 Vegetables – Odisha‟s climate makes it possible to grow all types of tropical, sub-
tropical and temperate vegetable. Sub-tropical and temperate vegetable such as tomato,
capsicum, cabbage, cauliflower, carrot, beet, peas, beans, and potato are grown in the winter
season. Other tropical vegetables such as brinjal, bhendi, cucumber and gourds are grown
through the year. Odisha is the second largest producer of brinjal in the country after West
Bengal. As of 2010-11 the total vegetable production of the state was estimated at 7.8 million
MT, of which brinjal accounted for approximately 28%.

However, in spite of ongoing efforts of the state towards horticulture development,

Odisha still fares poorly in terms of India‟s overall area under cultivation and total production
of fruits and vegetables. As of 2010-11, Odisha accounted for about 5% of the total area
under fruits and contributed to 3% of total fruits production. Odisha accounted for 6% of the
total area under vegetables and contributed to 5% of total vegetable production in the same
period.

General literature on agricultural marketing in Khorda

There is an extensive general literature on agricultural marketing in Khorda, Orissa in

the post-independence period which, though mostly old, provides useful pertinent
background to understanding current broad conditions. This helps to provide important
historical perspectives on areas such as the gender and ethnic components to marketing,
commodity chains and trader-state relations and past experience with market interventions.

More recent material comes from studies of urban and peri-urban horticulture in
Khorda(1998) and khorda village(1998), which include very brief reviews of marketing.
There is also material from other countries, which has relevance to India(1999). In particular,
there is much recent published research on matters related to agricultural marketing in Orissa.

By contrast, general background material on agricultural marketing in India is more

limited than that available for Orissa. We thus review what is available in more detail. It
often has a specifically rural focus or is restricted to issues such as smallholder outgrowing
schemes. An earlier work for colonial Salisbury also exists by Cheater (1979) which
specifically refers to African smallholders' production and marketing of food for the city.

A key reference for India is a review of markets and trade in the Copperbelt
conducted as far back as 1959. It suggests that the first use of market places in this region
may have come with European trader responses to the foodstuffs demand created by the
development of mining centres. By the time Miracle carried out his study maize, millets,
sorghums, grain, meals, salt, sugar, coffee and tea could not be sold legally in most market
places in India. He suggested that the grain sale prohibitions were designed to disguise a
subsidy to Indian farmers.

Important contributions to the literature on agricultural policy generally in India were

made by Odisha (1974, 1976, and 1981). However, as noted already, the studies were based
on a very misleading conception of India's urban/rural situation. In fact, by the end of the
1970s, long before structural adjustment, urbanization had slowed dramatically and many of
the Copperbelt towns were experiencing net out-migration to rural areas .The most
authoritative overview of India's agricultural policies, including marketing, before the fully
liberalised 1990s is Wood (1990).

VEGETABLE STUDIES
1.1 High Value Vegetables for Local Market

Vegetables are a wide field of study. There are different varieties and different
consumer market segments and preferences. Trade can be local, inter-regional and
international. According to the proponents and practitioners of sub sector analysis
methodology, it is crucial to define the precise parameters of a sub sector in order to create
focus and clarity. While acknowledging this necessity, it was necessary to adopt a working
definition of fresh vegetables for the urban market. Sub sector in this study is defined as a
basket of commonly demanded vegetables, and higher value vegetables demanded in the
urban market and produced in Orissa. The common vegetable basket includes tomatoes,
cabbage, carrot, cauliflower, iceberg lettuce, sweet pepper and the main high value vegetables
are broccoli, zucchini and soft (red) lettuce. The focus of the study is the urban markets in
khorda market. The main production areas of temperate vegetables are in the Southern and in
the Northern highlands. The sub sector characteristics and channels of high volume
(commonly known) vegetables and high value vegetables are rather distinct and therefore,
they are discussed separately. The trading of high volume vegetables is highly diversified and
informally organized. There are local brokers, who negotiate deals between farmers and
buyers.These buyers hire transporters that they do that through transport brokers. Within the
larger wholesale markets there are brokers, who receive the load of produce on credit and sell
it on to retail traders. These brokers know each other and work closely together; they form a
cartel and make it difficult for new comers to enter. Many traders are specialized in certain
produce. There is little transparency in the trade, which put farmers in a disadvantaged
position.

1.2. Rural Wholesale Market

This channel is characterized by a product exchange at a rural wholesale market place

and examples of these markets. A farmer takes his produce to these rural wholesale markets
but at the same time a farmer might also collect/buy from neighbor farmers. Traders buy from
farmers at these markets after which they transport it to the urban wholesale markets. In some
cases (Kwasadala – tomatoes) there are brokers in between farmers and traders.

1.3. Urban Wholesale Market

Some larger farmers organize their own sales and take their crop direct to the urban
wholesale market. These farmers might also buy from neighbor farmers to fill a truck. An
example of this channel is found in the khorda market mainly a carrot producing area – where
some farmers/traders after buying from neighbor farmers deliver directly to vegetable whole
sale market. The trading of high value vegetables for the local market is more organized, but
also more diverse. In addition to the channels mentioned above, it also has two more
channels.

GENDER AND ETHNICITY IN MARKETING SYSTEMS

Trading is a suitable source of livelihoods for both women and men. A substantial
number of detailed case studies have been made of women‟s role in foodstuffs trading in
Orissa. Nonetheless, these earlier studies emphasize the diversity of local cultural contexts in
Orissa and the massive impact of local gender relations on women‟s participation. They also
emphasize the critical importance of women in the urban produce and cooked food trade.
The extremes are represented by studies of secluded Hausa women traders operating from
their compounds in Khorda women entrepreneurs travelling long distances for trading.
However, a simplistic association of gender patterns of trade with religious affiliation needs
to be avoided, as is illustrated by studies in Orissa.

Research on gender issues and women‟s trading role in India has been less well
documented. Most of the larger scale traders were men. (Maize, the most important staple,
was officially unavailable to local trade at that time, being marketed through government
stores: resale of maize in markets was illegal). Vegetable selling was the most frequent
activity in the formal market surveyed. Food sales were clearly dominated by women.
Women were also more likely than men to be employers in the formal market, but the
situation reversed in unofficial markets.

FRESH AND PROCESSED VEGETABLES FOR LOCAL AND

REGIONAL MARKET
The vegetable sub sector consists of many actors performing various functions
ranging from seed production, input supply, production, brokering, bulking, trading,
processing, wholesaling, retailing and exporting. The main channels are:

• Vegetable basket channel; it consists of one medium scale producer, who produces high
quality vegetables by using highbred seed under irrigated circumstances and by applying
modern farming techniques, including pest control management.

• Fresh tomato trade; the trade in (fresh) tomatoes is very vibrant and engages many
brokers, middlemen and traders. The fresh tomato trade is characterized by spot market
arrangements, including manipulation of farm gate prices by lack of transparency in weights
and measures and misinformation of farmers of end market prices. Due to inadequate
handling particularly during storage and transport, post harvest losses can range between 20
to 50%.

• Export channel; Substantial volumes of tomatoes from the northern zone are sold to
Kenya. Obviously, this is in the advantage of the Khorda farmers as the prices are controlled.
Cross border trade is hindered by low cooperation of the Orissa officials, uses of different
measures standards, and lack of harmonization of (food) standards.
• Processed tomatoes; There are a number of tomato processing companies in Khorda. All
processors are struggling to source sufficient tomatoes, particularly during the period
December to June (rainy season) when prices are also (extremely) high. In order to address
the shortfalls, they buy tomatoes in abundance during the high production period and store it
as pulp and concentrate.

• Dried tomato channel; the main but still small player in this chain is River Cottage
industry. It produces high quality tomatoes and part of it is processed in dried tomatoes.
Presently, it is a fully integrated operation but a (small) out growers scheme is a future and
interesting option due to potential high yield (as a result of technical assistance, good seed
material and irrigation) and the generally high prices. This channel is further discussed in the
dry fruit and vegetable sub sector study.

Agriculture sector is vital for India in view of the food and nutritional security of the
nation as well as the fact that the sector remains the principal source of livelihood for more
than 58% of the population though its contribution to the national Gross Domestic Product
(GDP) has declined over the past years and has reached 14.2% in 2010-11 due to higher
growth experienced in industries and services sectors. Indian agriculture is dominated by
small and marginal farmers as Small and marginal holdings (below 2.00 ha.) taken together
constituted 83.29 percent of the total number of holdings in 2005-06 (the latest available
data) against 81.80% in 2000-01. For agricultural operations, availability of credit is a
critical input as the farmers have to purchase inputs like fertilizers, pesticides and make
payments for irrigation, labour and hiring machinery, etc., for agricultural operations. The
farmers in general and small and marginal farmers in particular are resource poor and are
dependent on credit for this purpose. Availability of credit is, therefore, very critical for
agriculture. Recognizing the importance of credit in the development of agricultural sector in
India‟s economy, the Government of India, the Reserve Bank of India (RBI) and National
Bank for Agriculture and Rural Development (NABARD) have played a vital role in
creating a broad-based institutional framework for catering to the increasing credit
requirements of the sector by way of Multi- Agency network comprising of Commercial
Banks (CBs), Regional Rural Banks (RRBs) and Cooperatives covering almost all the
villages in the Country.

An elaborate policy framework has been implemented in the country with the objective of
providing timely, adequate and reasonably priced (affordable) credit. Agricultural credit also
forms an important segment of the „priority sector lending‟ of scheduled commercial banks
(SCBs) and target of 18 per cent of net bank credit has been stipulated for the sector since
1968 (RBI, 2011) .

As a result of these measures, agricultural credit has doubled over last 5 years and
reached a level of Rs 366919 crores in 2009-10 registering annual compounded growth rate
of 18.5% over a period of 5 years (2005 to 2010) (NABARD, 2011)

Despite the significant strides achieved in terms of spread, network and outreach of
rural financial institutions, the quantum of flow of financial resources to agriculture continues
to be inadequate (Golait, 2007). As a result, agrarian distress on account of deceleration of
agricultural growth since late 1990‟s has been recognized as one of the major impediments in
the development process of India. The adverse impact of such slowdown is more serious in
the rainfed regions especially on small and marginal farmers with limited resources. Recent
studies on agrarian distress have revealed that indebtedness is one of the factors linked with
farmers‟ suicides on account of crop failure and related issues. This situation brings out the
fact that the existing institutional arrangement for credit delivery is not adequate and suitable
to address the agrarian distress in the country. Efforts to develop the agricultural sector in
developing countries are now taking place against the background of major structural change
in the world agricultural industry. In many developed countries, agricultural production is
changing from an industry dominated by family-based, small-scale farms or firms to one of
larger firms that are more tightly aligned across the production and distribution value chain.
In addition, the trend of market-orientated reforms, following multilateral trade liberalization
and especially structural adjustment programmes in developing countries, has led to the
increased integration of world markets. As collaborations among companies are common in
the business world but rarely observed among government organizations for agricultural
development. Reaching the end of the period of 11th five Years Plan (2007-2012), the
support and available infrastructural facilities are in the process of expansion and very soon
the 12th Five Years Plan (2012-2017) will come up and expecting some positive support to
agriculture to work on the road map of the agricultural growth. The reviewed the research on
market structure and performance, vertical coordination arrangements, and institutions for
producer collective action has brought a good insight about contributions to empirical
modeling of agricultural price determination and marketing margins are also evaluated, as are
innovations in research on spatial market relationships and the role of storage. The discussion
has contributed to understand market information systems and the functioning of market-
based mechanisms for agricultural risk management, including futures, options, and
insurance. Though the progress over the decades have been a remarkable journey explains
the demand for stronger vertical coordination in the food system as a means of satisfying
increasingly diverse consumer preferences are changing the landscape facing food supply
chain participants. The consolidation trend in the marketing sector seems inexorable,
implying that noncompetitive behavior and its effects will remain high on the research
agenda.

A number of organizations and schemes have promoted the development of

horticulture across India. The National Horticulture Board (NHB) was established in 1984
with the objective of promoting hubs of commercial horticulture industry through production,
post-harvest management and processing. The NHB has undertaken a number of initiatives
which have provided impetus to the sector across India and has driven improvements in areas
such as post-harvest management, capital investment in cold storage, technology
development, market information, as well as creating the Horticulture Promotion Service.
Similarly, the National Horticulture Mission (NHM), launched in 2005-06 has worked
towards the holistic development of horticulture sector across India by ensuring forward and
backward linkages through a cluster approach, with the active participation of all stake-
holders. These Interventions in horticulture, especially NHM, have led an increase in the per
capita availability of fruits and vegetables. For fruits, per capital availability has increased
from 138g/day in 2005 to 175g/day in 2011; and for vegetables, from 279g/day in 2005 to
316g/day in 2011.
 MATERIALS AND METHODS

PRODUCTION SCENARIO OF FOCUS ON VEGETABLES

Focus Vegetable – Brinjal

Odisha is the second largest producer of brinjal in the country after West Bengal. The
six districts in the catchment area account for 25.4% of the total brinjal production for the
state. The key brinjal producing regions within the catchment area are Khorda, Cuttack,
Keonjhar and Dhenkanal. The area under brinjal cultivation and total production in the
catchment area have remained relatively stable over the three year period from 2008-09 to
2010-11.On the basis of the area, production and productivity statistics of the primary survey
respondents, it is estimated there are approximately 80,000 brinjal growers in the region with
an average landholding size of approximately 1.03 acre per farmer and average productivity
of 91.3 quintals/acre (22.55 MT/Ha), which is higher than the national average of 17.5
MT/Ha.

Utkal Tarini (BB 7) is the most popular variety of brinjal in the region. Further, while
brinjal can be cultivated the whole year round, Kharif season is the preferred season for
brinjal cultivation in the region. Athgarh block of Cuttack district has the maximum number
of producers in both the seasons. This is followed by Dhenkanal in the first season i.e. Kharif,
while Angul district has the same during the second season i.e. Rabi.
Focus Vegetable – Tomato
The six districts in the catchment area account for 22%of the total tomato production
for the state. The key tomato-producing regions within the catchment area are Khorda,
Dhenkanal, Angul and Atagarh in Cuttack. The area under cultivation of tomato and the total
production of tomato in the catchment has gone down 4,13,854 MT in 2008-09 to 3,01,232
MT in 2010-11. This decrease can be attributed to the fact that there have been occasions of
distress sale of tomato in the recent past wherein the price realization has been so poor that
the farmers may have moved away from tomato cultivation.On the basis of the area,
production and productivity statistics of the primary survey respondents, it is estimated there
are approximately 66,000 tomato growers in the region with average landholding size of 0.78
acres per farmer and average productivity of 58.5 quintals/acre (14.45 MT/Ha) which is
below the national average of 19.5 MT/Ha.

BT-2 (Utkal Deepti) is the most popular variety of tomato cultivated in region;
followed by Sun and certain other local varieties. Further, Rabi season is the main season for
tomato cultivation.
Focus Vegetable – Cauliflower
The six districts in the catchment area account for 23.5% of the total cauliflower
production for the state. The key cauliflower producing regions are Khorda,Dhenkanal and
Keonjhar. The area under cauliflower cultivation and total production in the catchment area
have remained relatively stable over the three year period from 2008-09 to 2010-
11.Productivity of cauliflower in the region 15.26 MT/Ha which is lower than the national
average of 18.3 MT/Ha.

Rabi season is the main season for cauliflower cultivation. The key varieties grown in
the region are While Contessa, Gandhari, White Tez and hybrid varieties, with White
Contessa being the most preferred variety.

Focus Vegetable – Cabbage

The six districts in the catchment area account for 25.7% of the total cabbage
production for the state. The key cabbage-producing regions are Dhenkanal, Keonjhar and
Cuttack. The area under cabbage cultivation and total production in the catchment area have
remained relatively stable over the three year period from 2008-09 to 2010-11.Productivity of
cabbage in the region 28 MT/Ha, which is higher than the national average of 21.3 MT/Ha.

Rabi season is the main season for cabbage cultivation. Further, “Royal Bulb” is the
most popular variety grown in the region followed by certain local varieties.

Focus Vegetable – Okra

The six districts in the catchment area account for 21.6% of the total okra production
for the state. The key okra producing region within the catchment area is Keonjhar. The area
under okra cultivation and total production in the catchment area have remained relatively
stable over the three year period from 2008-09 to 2010-11.Productivity of okra in the region
8.8 MT/Ha, which is lower than the national average of 11.6 MT/Ha.

Major finding

The above information on the production system of focus fruits and vegetables
indicates that, there is tremendous production potential in the region. However,
while the potential is immense, our analysis also revealed several weaknesses in
the production system such as:

 While there is abundant production of fruits and vegetables in the region,

most of the fruit and vegetable farmers are smallholders as a result of
which production is fragmented and farmers individually have very small
amount of marketable surplus. Thus, there is a need for creating an
appropriate aggregation mechanism in the region for the production
potential to be fully realised.
 The average productivity of most of the fruits and vegetables crops
(except for brinjal and cabbage) in the catchment area is lower than the
average productivity of other states. One of the main reasons for low
productivity is adoption of non-descript varieties by the farmers. In the
case of vegetables, improved varieties like Utkal Deepti (BT 2) in tomato
and Utkal Tarini (BB 7) in Brinjal are now being adopted by the farmers.
Similarly in the case of fruits, improved varieties like “Amrapalli” in
mangoes have gained wide acceptance over the past few years. The
productivity increase as a result of the adoption of improved varieties of
fruits and vegetables offers an opportunity for increasing farmer
incomes.
 Absence of post harvest management and handling infrastructure leading
to significant wastages at various levels in the value chain. Anecdotal
 evidence suggests that current post harvest losses are 30-35% of the total
production of fruits and vegetables.

MARKETING CHANNELS OF THE FOCUS FRUITS AND

VEGETABLES
On the basis of the primary assessment undertaken, the following key marketing
channels for fruits and vegetables were identified.

Channel 1 – Local, through haats (across Odisha)

Farmer-cum-
Farmer trader/petty consumer
vendor

Channel 2 – Intra-state (khorda,Dhenkanal, Angul and nearby small

towns)

farmer middleman

retailer consumer

Channel 3 – Intra-state, with PHCs (Bhubaneswar, Cuttack, Bhadrak

 middleman
PHC
retailer
farmer
Commission
consumer
agent

Channel 4- Inter-state and international (Lucknow, Patna, Delhi,

Kathmandu)

farmers middleman

PHC retailer

wholesellers consumer

These chains vary according to geography and to size of end market. PHCs, for
example, are more common in the larger markets connected to Bhubaneshwar and
Cuttack, although they are also to be found in certain parts of Dhenkanal and
Deogarh districts. Demand is the key factor driving the emergence of certain
channels, as well as other factors such as local infrastructure, marketable surplus and
so on.

Research Design and Methods

The study is descriptive in nature and for this purpose only the secondary source of
data has been used. The purpose is getting solved by the visit of different online libraries,
published articles available with different online databases and the printed published journals,
magazines, news papers and books. Most of the data gathered from secondary source will get
filtered and will get used in final thesis with references. The study is centered to gather the
information about the status of three parties involved from production to consumption of
green vegetables. So the dimensions are:

(1) Input Facilities

(2) Wastage

(3) Production cost

(4) Transaction cost

(5) Price benefit

(6) Motivation.

For the purpose of study Potato, Brinjal, Cabbage, Cauliflower and Okra vegetables
have got selected due to the high yield, maximum utilization and value addition to the
produce.

 Data collection through primary and secondary sources – Data relating to

production, processing, marketing, infrastructural facilities etc was gathered from
various publically available sources like government websites and publications and
the Directorate of Horticulture at Bhubaneshwar. To validate the findings of
secondary data, field assessments were carried out. Two structured questionnaire
surveys were undertaken (one for farmers and one for traders) in order to map out the
existing value chain of fruits and vegetables, with a special emphasis on mango and
identify of gaps at each stage, with added focus on institutional, infrastructural and
logistical constraints. Certain key clusters which are significant in terms of quantum
of produce were identified on the basis of local enquiries and 396 fruits and
vegetables farmers were surveyed across these clusters. Further, 42 traders from
within the catchment area and Bhubaneswar and Cuttack were identified and surveyed
in order to understand the key marketing channels for fruits and vegetables in the
region.
 Data analysis and gap assessment – On the basis of the findings from the field
studies, gaps in the existing value chain were identified and the key findings were
discussed with various stakeholder groups including the Director of Horticulture. The
inputs received from the various stakeholders were used to define the scope of the
infrastructure requirements and provide the design parameters for the facilities and
equipment in the proposed Hub. Further, based on the needs assessment, special
attention was directed towards designing appropriate institutional mechanisms and
linkages to ensure maximum impact and sustainability of the project.

Analysis
 Data were analyzed using simple statistical measures such as distribution
by frequency and percentage, trend, average, variation

RESULT AND DISCUSSIONS

Productivity of different vegetable in Odisha( 2015-16)

VEGETABLES AREA PRODUCTION PRODUCTIVITY

(1000 hctr) (1000 MT) (in MT)
Brinjal 33 705.90 12.8
Okra 48 590.03 12.2
Tomatoes 62 910.12 14.6
Cucumber 43 640.24 14.8

From the above table it indicates that the comparative production and productivity of
different vegetables in Orissa. Maximum production in case of Tomatoes i.e. 910.12MT
against 62 hctr and minimum in case of Okra i.e. 590.03MT against 48 hctr. Whereas
maximum productivity in case of cucumber i.e. 14.8MT against 43hctr and minimum
productivity is 12.2MT in case of Okra against cucumber.

Productivity of different vegetable in khorda district

VEGETABLES AREA(1000 PRODUCTION(1000 PRODUCTIVITY(in

hctrs) MT) MT)
Brinjal 21 315.85 15.04
Okra 15 215.03 14.33
Tomato 28 410.10 14.64
Cucumber 11 180.29 16.39
From the above table it indicates that the comparative production and productivity of
different vegetables in Khorda. Maximum production in case of Tomatoes i.e. 410.10MT
against 28hcrt and minimum in case of cucumber i.e. 180.29MT against 11hctrs.Whereas
maximum productivity in case of cucumber i.e. 16.39MT against 11hctr and minimum
productivity is 14.33MT in case of okra.
Numbers of farmers engaged in vegetable farming

SL.NO Vegetables No. of farmers (in %)

1 Tomatoes 65

2 Brinjal 50

3 Okra 45

no.of farmers engaged in vegetable farming

70 Tomatoes , 65

60
Brinjal, 50
50 Okra, 45

40

30

20

10

0
Tomatoes Brinjal Okra

Age group of farmers

Sl.No. Age Category Farmers

1 Up to 35 15
2 35-45 25
3 45 & above 10
 The observation revealed that 30 % of the respondents belong to young age group (up
to 35 years), 50 % of the respondents belong to middle age group (35-45 years),20 % of the
respondents belong to old age group(above 45 years).

EDUCATION

SL NO. Literacy Level %

1 Up to high school 25
2 10th pass 15
3 12th & above 10
 1

The data from the tables revealed that the respondents up to high school is 50% ,10th pass is
30 % and college &above is 20% .

SOCIAL PARTICIPATION OF THE RESPONDENTS

SL NO. Social participation %

1 Have participation 80%
2 No participation 20%
The table revealed that maximum no. of respondents that is 80 % the respondents are socially
participated & only 20 % are not socially participated.

MONTHLY INCOME OF THE FARMER.

The table revealed that the maximum no. of sample respondents belong to less than 10,000
income group & minimum belong to 15,000-20,000 income group. Hence research findings
are based on the opinion & views of maximum no. which is less than 10,000 income group of
respondents.

SL NO Monthly Income %
1 less than 10,000 50%
2 10,000-15,000 30%
3 15,000-20,000 20%
IRRIGATION FACILITIES PROVIDED BY OCTMP

We have studied four clusters i.e. Tangi, Begunia, Jatni & Mendhasala in Khurda
District which are presently working under OCTMP & analysed that Tangi & Mendhasala are
provided irrigation facilities with Diversion Weir whereas Begunia &Jatni are provided
irrigation facilities with Tank system.But the problem the farmers are facing that Tangi &
Mendhasala are provided with adequate quantity of irrigation facilities whereas Begunia &J
atni are not provided with adequate quantity of irrigation facilities i.e. during survey we
found that 60 % facility is provided to Tangi cluster i.e. 40 hectare is the aycat area whereas
other clusters like Begunia is getting around 20 % of irrigation facility i.e. 10 hectare is the
aycat area, Jatni is getting 30 % irrigation facility & Mendhasala is getting 40 % irrigation
facility.Hence the table revealed that Tangi cluster is getting maximum facility for irrigation
as compared to all other clusters whereas Begunia cluster is getting minimum facility for
irrigation.

SL NO Custer % of Irrigated area

1 Tangi 60%
2 Begunia 20%
3 Jatni 30%
4 Mendhasala 40%
SOURCE OF IRRIGATION

SL NO Source of Irrigation %
1 Tank 40%
2 Diversion Weir 60%
 By surveying it is found that 40 % of source of irrigation is tank system & 60 % of
source of irrigation is diversion weir i.e. out of 20 ,12 diversion weirs are there which provide
irrigation facilities & 8 tank systems are there .

VEGETABLES PRODUCED BY THE FARMERS IN KHURDA

DISTRICT

By surveying the four clusters we` analysed that the farmers cultivate brinjal in large
amount` i.e. 70% ,potato 60`%,tomato 50%,ladies finger 50%,pumpkin 40%,onion 30% &
cucumber 25%.Hence the table revealed that Brinjal is produced in larger quantity as
compared to all other vegetables.

SALES PATTERN OF THE FARMER

By survey it is found that the farmers mostly sell their produce to the local traders due
to the fear of spoilage of the produce & lack of better linkage in the supply chain. These local
traders take the products to the marketplace to sell the produce to the customers. It is
analysed that 40% of vegetables are taken to the urban areas & 60% of the vegetables are
sold in the village market itself.

SL NO Sales Pattern %
1 Periurban 40%
2 Away from urban area 60%
TOTAL SALES OF THE FARMER

SL NO TOTAL SALES %
1 Investment 75%
2 Profit 25%
Farmers invest 75% & get a profit only 25% by selling their produce

FACILITIES PROVIDED BY OCTMP TO FARMERS

By survey we came to know that OCTMP provides facilities to those farmers who
have registered in Pani Panchayat of their respective districts which are guided under
OCTMP & Its most positive aspect is that it creates a group & provides facilities to the
farmer groups. By analyzing we found that its biggest contribution is providing training to the
farmers which is nearly about 70% of the total facilities.Its contribution towards soil testing
& market access is very less i.e. 5%.It provides 30% critical input facilities & irrigation
facility about 40%.Due to failure in market access the farmers could not able to sell their
products at a fair price & as result of which the farmers have to bear loss.

SL NO facilities provided by OCTMP %

1 Soil Testing 10%
2 Critical Input 40%
3 Irrigation 40%
4 Training 70%
5 Market Information 5%
6 Marketing Facilities 5%
VALUE ADDITION BY FARMERS

Generally value addition includes change in form,change in place,change in time &

change in possession or ownership. By survey we analysed that the farmers in Khurda
District are small & marginal farmers.They don‟t have efficient idea about value addition &
they are also not given any support for value addition from any other organization.They don‟t
have sufficient fund to add value to the products.Normally traders come to the farmers & they
take the products from the farmers.Due lack of awareness of value addition they also don‟t
get enough profit.

VALUE ADDITION IN THE

SL NO CLUSTERS %
1 Tangi 5%
2 Begunia 5%
3 Jatni 10%
4 Mendhasala 20%
The farmers in Khurda District are small & marginal farmers. They don‟t have efficient idea
about value addition & they are also not received any support for value addition from any
other organization. Normally traders come to the farmers & they take the products from the
farmers. Due lack of awareness of value addition they also don‟t get enough profit. Maximum
value addition is done in Mendhasala cluster as compared to all other three clusters.

SWOT Analysis

Strengths

1. Ten agro-climatic zones of the State are quite diverse and suitable for growing
different types of fruits, vegetables, spices and flowers.
2. The high land and medium lands are abundantly available which can be diverted to
horticultural crops.
3. State has got agencies like Orissa State Seeds Corporation, Agriculture Promotion and
Investment Corporation Ltd., Orissa State Agricultural Marketing Board to support
the horticultural programmes.
4. Access to metropolises like Kolkata, Chennai, Mumbai and Delhi etc. and other big
cities enhances the possibilities for export to other States.
5. Good co-ordination and linkage with the State Agriculture University.
6. Enactment of Fruit Nursery Act-1999 ensures control over producing QPM in the
Private Sector.
 7. Availability of abundant and cheap manpower.

Weakness

1. Non-availability of adequate quality planting material.

2. Inadequate staff strength and weak extension network in the Horticulture Directorate.
3. Existence of large number of old and senile fruit orchards most of which have lost
even the capacity to rejuvenate.
4. Poor marketing linkage and poor market infrastructure.
5. Lesser irrigation facility.
6. Incidence of pest and diseases many a times becomes unmanageable.
7. Absence of Air connection to major cities other than the metros.
8. Poor post-harvest management infrastructure.
9. Aspect of updating knowledge and skill of staff regarding recent advancements in the
field of horticulture is highly neglected.
10. Poor economic condition of the farmers.

Opportunities

1. There is tremendous demand for fruits, vegetables and flowers in the State which
otherwise is being met by import from other States.
2. There is scope for introduction and expansion of new crops and varieties.
3. Tremendous scope for establishment of processing units.
4. Availability of abundant suitable land for growing horticultural crops.
5. Scope for protected cultivation of flowers, vegetables and also planting materials.
6. Scope for enhancing the availability of fruits and vegetables to the people for
consumption as per national recommendations.
7. Scope to generate marketable surplus and also surplus for export.

Threats

1. Uncertainty in weather conditions and frequent occurrence of natural calamities like

flood, cyclone and drought.
2. Uncertainty about market stability and farmers do not get remunerative price.
3. Exploitation by middlemen in the market chain.
4. High incidence of pest and diseases.
PROPOSED PRODUCT MIX AND FLOW OF PRODUCE

Following are identified fruits and vegetables which will comprise the product
mix of the Hub:

Vegetables – Brinjal, tomato, cabbage, cauliflower and okra

Fruit supply peaks for three months i.e. April to June (including
watermelon), while vegetable supply peaks in rest of the months. This
counter seasonality between fruits and vegetables will help ensure
availability of produce throughout the year for the Hub – with increased
focus on fruits in the summer months. Peak Period Lean Period Low
Production.
DPR – KHORDA Fruits and Vegetables Hub

ADMINISTRATIVE BUILDING

The marketing infrastructure, farmer training rooms, administrative offices,

banking facilities and shops will be housed in a separate administrative
building. It is envisioned that there will be minimal interference between the
people of the administrative building and the Post Harvest Treatment Centre
in order to ensure smooth functioning of the unit.

MESS FACILITY AND ATM

Mess facilities will be provided for workers and officers working in the
administrative building and the Post Harvest Treatment Centre. Along with
these facilities, an ATM has also been provided on the ground floor of the
administrative building.

LECTURE HALL AND OFFICE SPACE

Lecture Hall – A lecture hall has been provided for the purpose of farmer
training on the second floor of the administrative building.
Office Space – Office space for the senior management has been provided on
the second floor of the administrative building. There is provision for the
MD‟s Cabin, Chairman‟s Cabin, Board Room and other facilities like record
room and server room.
SUPPORT INFRASTRUCTURE

ETP – Liquid effluent emerging from the Post Harvest Treatment Centre will
have to be treated before disposal. It is envisaged that that the treated
effluent from the ETP, estimated to be around 30,000 liters annually, will be
used for irrigating the garden and the trees in the campus.

Vermiculture pit – There will be around 5 to 10% wastage of fruits and

vegetables being processed at the Post Harvest Treatment Centre. In order to
properly dispose of the solid waste, all the spoilt, damaged fruits and vegetables
will be dumped at the vermiculture pits where they will be converted into
manure.

Hard parking – Hard parking area is the concretized ground in front of the
Post Harvest Treatment Centre and marketing sheds which will be used for
the parking of the vehicles during loading and unloading of fruits and
vegetables at the dock of Post Harvest Treatment centre. The concrete
flooring will be reinforced so that it can take the heavy traffic of loaded
trucks.

Areas for future expansion: - Construction of staff quarters in the future -

Expansion of core facilities of Post Harvest Treatment Centre to enhance the
handling capacity.

Despite the research achievements and generous support for the

developmental activities by the government of India, Indian horticulture is
dodged with several constraints which need to be tackled effectively.
 SUMMARY AND CONCLUSION

We have studied four clusters i.e. Tangi , Begunia , Jatni & Mendhasala in Khurda
District which are presently working under OCTMP & analysed that Tangi & Mendhasala are
provided irrigation facilities with Diversion Weir whereas Begunia &Jatni are provided
irrigation facilities with Tank system. But the problem the farmers are facing that Tangi &
Mendhasala are provided with adequate quantity of irrigation facilities whereas Begunia &
Jatni are not provided with adequate quantity of irrigation facilities i.e. during survey we
found that 60 % facility is provided to Tangi cluster i.e. 40 hectare is the aycat area whereas
other clusters like Begunia is getting around 20 % of irrigation facility i.e. 10 hectare is the
aycat area , Jatni is getting 30 % irrigation facility & Mendhasala is getting 40 % irrigation
facility .Hence the table revealed that Tangi cluster is getting maximum facility for irrigation
as compared to all other clusters whereas Begunia cluster is getting minimum facility for
irrigation. By surveying the four clusters we` analysed that the farmers cultivate brinjal in
large amount 70%, potato 60`%, tomato 50%, ladies finger 50%,pumpkin 40%,onion 30% &
cucumber 25%.Hence the table revealed that brinjal is produced in larger quantity as
compared to all other vegetables. it is found that the farmers mostly sell their produce to the
local traders due to the fear of spoilage of the produce & lack of better linkage in the supply
chain. These local traders take the products to the marketplace to sell the produce to the
customers. It is analyses that 40% of vegetables are taken to the urban areas & 60% of the
vegetables are sold in the village market itself. We came to know that OCTMP provides
facilities to those farmers who have registered in Pani Panchayat of their respective districts
which are guided under OCTMP & Its most positive aspect is that it creates a group &
provides facilities to the farmer groups. By analyzing we found that its biggest contribution is
providing training to the farmers which is nearly about 70% of the total facilities .Its
contribution towards soil testing & market access is very less i.e. 5%.It provides 30% critical
input facilities & irrigation facility about 40%.Due to failure in market access the farmers
could not able to sell their products at a fair price & as result of which the farmers have to
bear loss. ) There is tremendous demand for fruits, vegetables and flowers in the State which
otherwise is being met by import from other States.

There is scope for introduction and expansion of new crops and varieties. Tremendous
scope for establishment of processing units. Availability of abundant suitable land for
growing horticultural crops. vegetables and also planting materials. Scope for enhancing the
availability of fruits and vegetables to the people for consumption as per national
recommendations. Scope to generate marketable surplus and also surplus for export.
 REFERENCE

1. Project Implementation Plan (OCTMP) Volume I of PIP(2008).

2.Dharmistha,C (2015) Gender concerns in agriculture and allied sectors

,training handout of market led extension in agriculture and allied sectors (5 th-
9th October,2015.

3. RKVY(RastriyaKrishiVikasYojna), Operational guidelines for XII five years

plan.

4. Report on Research Study on estimation of marketing efficiency of

Horticultural commodities under different supply chain in India 2010, National
Center for agricultural economies and policy research.

5. www.iihr.ernet.in vision 2050 of Indian Institute of Horticulture

Research,Banguluru.

6.State Agriculture Policy, 2013

7.Agribusiness and Entrepreneurs Developments (AEM)202, 2008, MANAGE,

Hyderabad.
 ANNEXTURE

MARKETING ANALYSIS OF VEGETABLES IN KHORDA

DISTRICT

Date-
Dear Sir/Madam,
We are doing a brief survey to find out more about “Marketing analysis
of vegetables in Khorda District”. We would be great full if you could spare a
few minutes to participate in it. Thank You for your cooperation.
 Name of the farmers-
 Survey location-
1.Are you the owner of this cultivation field?
a.yes
b.no
2.How much acres of land you use to cultivate vegetables?

3.What type of vegetables are cultivated in your field?

a.single type
b.different type
4.Do you cultivate fruits in your field?
a.yes
b.no
5.Do you use pesticides for your field?
a.yes
b.no
6.What are the most common vegetable cultivated in your field?

7.In Rabi season what kind of vegetables are mostly cultivated?

8.InKharip season what kind of vegetables are mostly cultivated?

9.What kind of income you get in selling the vegetables in market by

annually and monthly?

10.Which month you get more profit in selling the vegetables in market?

11.Which vegetables of your cultivation is the most demanding among

people.

12.Do you prefer natural cultivation?

a.yes
b.no
13.What type of cultivation do you prefer?
a.manually
b.mechanically
14.Do you provide vegateables to the super market?
a.yes
b.no
15.What kind of help you get from government for your vegetable
cultivation?

16.How much time you give in working the field for cultivation of
vegetables?

17.How much profit you get from local market ?

18.In which market you sale your vegetable in large quantity?
a.local market
b.rural market
19.How many farmers works in your field?

20.Are you satisfy with your business?

a.yes
b.no