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Project Record

Objectives:

New institutional arrangements adopted as a way of establishing systems that improve the livelihood of poor tribal horticulture growers through value addition.

Background:

In spite of access to rich natural capital (the climatic conditions are very favourable for horticultural production), the tribals of the area have remained below the poverty line. They grow a wide range of horticultural crops (such as pineapples, oranges, jackfruits, mangoes, lemons etc.) as well as turmeric, ginger and other cereal crops.

However, in spite of cultivating horticulture crops, they receive an inadequate price and remain below poverty line. Since they are physically distanced from markets, they do not market the produce themselves. They sell the produce to the traders or Schedule Castes or SCs (the 'untouchables') who in turn sell it to the middlemen in these marketsheds for onward sale to other larger markets.

As a result, the tribals lie at the most disadvantaged end of a long marketing chain. There are a number of factors that disadvantage the tribals and limit the market opportunities available to them.

First, the produce is usually seasonal, is perishable and has a low shelf life. In addition, the tribal farmers neither have the knowledge nor access to information regarding value addition options. As a result, given its perishable nature, the farmers often resort to distress sales receiving very low prices. For example, for pineapples, the tribals get a return of Rs. 3 per piece at the beginning of the harvest season (May) and by July they only get Rs. 0.50 to 1 per piece.

Secondly the tribals have to traverse long distances by foot (they live several kilometres in the interior hills) to reach the nearest market. They also have limited options for selling their produce. They depend on the trader who comes to the doorstep to collect the produce which usually is on the day of the weekly market. This means that in the interim period they are not able to pick the fruit which over ripens giving the trader another reason to give reduced prices to the farmers.

Culturally, tribals spend their limited resources on rituals and festivals in the villages. Credit requirements are thus high and in the face of under developed credit options, the tribals are often dependent on the traders for credit which comes in the form of farming inputs, barter with essential items or even cash for the ceremonies. At times, the farmers then mortgage their land for 2-3 seasons and end up working as labourers on their own lands.

While the tribals farmers have been growing horticulture crops, the marketable product quality has not improved. The adoption of improved varieties as required by the market is slow. Erratic rainfall, pest attacks and inadequate knowledge of agronomic practices have further impacted the marketable quality.

Though the government tribal department has been working in the area, there have been ineffective extension services provided to the farmers. It is not that solutions to the above problems do not exist or have not been tried in the past. There have been attempts by several institutions such as the government department, local NGOs and private sector players to address some of these issues.

For example, the government had set up a processing unit in the adjoining district for procuring and processing horticulture produce of tribals. This unit closed due to mis-management and was sold to an entrepreneur from a nearby state who moved critical equipment to his state.

The government has also attempted to procure the produce at remunerative prices but it was the initiative of an individual that ended on his transfer.

The local NGOs have been organising the farmers into self help groups for thrift and credit but have not been able to do much on improving market linkages due to inadequate expertise in that arena.

The Orissa University of Agriculture and Technology (OUAT) infact has a Crop Post Harvest department that has developed and researched a large number of post harvest technologies, few of which have been taken to the f

Intended Outputs:

Enhanced understanding of constraints faced by tribals in accessing higher returns for their key high value crops.

Identification of appropriate technology for value addition to horticulture produce / fibre.

Prototype business, marketing and implementation plan developed using a multi agency inclusive approach bringing various stakeholders together.

Increased understanding of rules that govern successful partnerships within the total system and arriving at principles for institutional and organisational systems that allow poor tribal horticulture producers to gain improved market access and higher returns.

Progress and Impact:

Strategic assessment of constraints faced by tribals in accessing higher returns for their key high value crops.
IDEI, the managing partner and CCD, the local NGO partner, initiated and completed the livelihood analysis process. It enhanced the level of understanding of all partners on the constraints faced by the tribals in accessing higher returns for their key high value crops. The analysis also helped in deciding a basket of key crops to work with which had maximum potential for income increase. Such crops are pineapple, lemon, jackfruit, cashew apple, tamarind. Simultaneously, a market study was also conducted to analyse the potential of value addition to various crops grown. In the process of this study several processing companies showed interest and keenness to procure produce from the tribal growers and be involved in the marketing of the value added products. An institutional analysis revealed the social capital of the tribal communities, which helped in facilitating transaction of the horticultural produce. SHGs as village level institutions was found to be important in helping growers organise themselves to streamline product supply and value addition activities.

A business strategy for linking tribals to markets through a prototype enterprise involving multiple agencies validated and promoted.
*OUAT, CCD and IDEI decided on key crops to work with and initiated value addition trials for these crops; ie pineapple, lemon, jackfruit, cashew apple, tamarind, etc. To start with, available and suitable user friendly technologies were used such as juice extraction, candy making, RTS drink. Subsequently, based on the market and technology studies, osmo-dehydrated pineapple slices, tit-bits, juice, jam jelly, pickle from jackfruit, seedless tamarind, etc. were also tried. Initially these tests were done at lab level in OUAT's laboratory in Bhubaneshwar.
*Once the products were finalised, value addition training was organised to transfer the skills to the SHG members for technology adoption. It was found that simply training the SHG members was inadequate to produce food products to quality specifications. With the minimalist infrastructure available at farm level, the tribal groups could at best supply graded, cleaned or semi - processed fruits.
*Further training was imparted on hygiene, sterilisation, etc. The next batches produced by the groups were of higher quality.
*The value added products, particularly the pineapple slices, tit-bits brought out with the help of the technical partner OUAT, were market tested, which helped in further developing the product and the packaging.
*Market linkage was also simultaneously established with OMFED and Arren Foods Pvt Ltd for supply of semi-processed produce as well as some value added products such as seedless tamarind. While one MT of pineapple and lemon juice was supplied to OMFED, M/s Arren lifted one quintal of seedless tamarind during the last season.
*A federation of SHGs, ie Gajapati Women's Self Help Co-operative Ltd, was formed with the initiative of CCD to provide a platform for the smooth business transactions of horticulture produce.
*On seeing the market potential, a proposal for setting up a processing unit in the project area was submitted to CAPART and the Department of Science and Technology for sanction of finance to establish the unit.
*In the meantime, orders for juice in bulk from the local area have been received for the coming seasons.
*As a result, the price realisation for some fruits increased in the local markets - for example, pineapple price increased from Rs. 2/- to Rs. 4/- per piece.

A set of project design principles from experiences of implementing a multi-agency agro-process project focussing on poor tribals developed and disseminated.
*The partnership process during the life of the project was documented from time to time particularly on three impact domains, ie lives of the poor people, c

Project Conclusions:

The project contributed significantly to the goal of crop post-harvest innovation systems responding more effectively to the needs of the poor in terms of innovation of user friendly and low cost technologies befitting the needs of the growers and the processors. They have adopted the technologies for adding value to the produce for obtaining higher returns. Different forms of value added products and the technologies being in place, private sector players showed interest to initiate business with the poor growers. Due to the project intervention the demand for the produce increased, which ultimately resulted in a raised price of the produce benefitting the poor growers. The linkage established with OMFED for regular supply of the value added produce is a breakthrough, in which the interests of the growers in terms of sale of produce and regular income have been protected. For the first time, with the initiative of the local NGO partner, a federation of the growers, ie Gajapati Women Self Help Co-operative Ltd was established, to provide the poor growers with a platform through which the communities could be better linked with the markets. A network of different organisations such as the technical organisations, intermediaries, growers, public and private processors and other market players were co-ordinated in such a way as to provide the tribals with output market links for their produce as well as to build their capacities to initiate local level value addition. The system in place will be co-ordinated at a later stage by the federation of the growers.