State Profile Uttarakhand, located at the foothills of the Himalayas, is characterized by diverse geographical features ranging from snow-capped mountain peaks in the North to tropical forests in the South. It has been divided into two regions- the western region- Garhwal Mandal and the eastern region- Kumaon Mandal. It is divided into 13 districts which consist of 95 blocks. The table below gives key demographic indicators and their comparison with pan-India numbersSN Indicators Unit Uttarakhand India 1 Geographical Area Lakh Sq. Km 0.53 32.87 2 Population Crore 1.01 121.02 3 Decadal Growth Rate Percentage 19.17 17.64 4 Density of Population Population/Sq. Km. 189 382 5 Urban to Total Population Percentage 30.49 31.16 6 Sex Ratio Females/1000 Males 963 940 7 Literacy Rate (LR) Percentage 79.60 74.04 2. Land Use Out of a total geographical area of 5.35 million ha in the state, 4.6 million ha (86%) is hilly area and 0.74 million ha (14%) is plain area. Only about 14 percent of the geographical area is cultivable which is mainly attributed to the topography of the state. Because of its location and diverse climate, the State has certain unique advantages for development of horticulture, agro processing industries, organic farming, off season vegetable cultivation and cultivation of medicinal and aromatic plants which can be gainfully exploited. Similarly, service sector, particularly tourism offers a large potential for employment generation in both urban and rural areas. The State is having about 61.1% area under forests. The share of net sown area is only about 14 % as against the national average of 43.37%. The share of culturable wasteland is about 7% which provides a huge potential for fodder trees and other plantation crops including fruits. Agriculture is a predominant sector in the state economy which contributes around 23.4% in State Domestic Product (GDP).The average size of land holding in the state is 0.95 ha (Marginal-0.39, Small1.38, Medium-3.33 and Large-36.00) as against the National Average of 1.57 ha. The share of small and marginal holdings is higher in Uttarakhand State as compared to National Average. The agriculture sector in the state continues to remain heavily depended on rainfall. The net Irrigated area in the State is 3.45 lakh ha. Out of which 85.83% is in plains and 14.17% are is in hills. The irrigation intensity in the State is 159% which varies between 155% in plains to 184% in hilly region. 3. Agro Climatic Zones The state has different agro-climatic conditions, slopes and height. Details of Physiographic Zones and farming situations in the state are as under: S.N Zone Farming situation Soil Rainfall (mm/year) Districts Principal farm produces and Livestock 1 Zone A up to 1000 M Tarai irrigated Alluvial 1400 U.S. Nagar, Haridwar Rice, wheat, sugarcane, lentil, chickpea, rapeseed mustard, mango, Litchi, guava, peach and plums. Livestock: Buffalo and cattle Bhabar Alluvial mixed with boulders and shingles 1400 Nainital, Dehradun and Pauri Garhwal Rice, wheat, sugarcane, rapeseed mustard, potato, lentil, mango, guava and litchi. Livestock: Buffalo and cattle Alluvial sandy soil 2000-2400 Champawat, Pauri Garhwal, Dehradun, Nainital, Tehri Garhwal Rice, Wheat, onion, chilly, peas, potato, radish, cauliflower, pulses, oilseeds, soybean, mango, guava, plums and peaches. Irrigated Irrigated lower hills (6001000M) Livestock: Buffalo and cattle 2. Zone B 10001500M Rain-fed lower hills (6001000M) Residual sandy loam Mid hills south aspect (10001500 M) Sandy loam 2000-2400 1200-1300 Champawat, Nainital, Pauri Garhwal, Dehradun, Tehri Garhwal, Bageshwar finger millet, Maize, rice, wheat, pulses, mango, guava, plums and peaches. Champawat, Nainital, Almora, Dehradun, Tehri Garhwal, Bageshwar Rice, finger millet, wheat, potato, tomato, peas, cole crops, pulses, peach and plums. Livestock: Buffalo, cattle and goat Livestock: Cattle, sheep & goat 3 Zone C 15002400M High hills Red to dark 1200-2500 Pithoragarh, Almora, Chamoli, Bageshwar (15002400 M) Amaranth, finger millet, French-beans, Cole crops, potato, peas, peaches, plums, pear, apple and stone fruits. Livestock: Cattle, sheep and goat 4. Zone D> 2400 M Very High hills Red to dark Black clay 1300 Pithoragarh, Chamoli and Uttarkashi Amaranth, buckwheat, peas, Cole crops, apple and potato. Livestock: Sheep & goat 4. Horticulture The geographical attributes and climatic conditions of the state are ideal for production of temperate and subtropical fruit crops. In hilly areas, fruits like apple, pear, peach, plum, khumani and walnut are produced while mango, litchi, malta, santra, lemon, aonla, guava, and pomegranate are mostly grown in Tarai and valley areas. Major vegetables grown in the state are potato, cauliflower, tomato, onion, brinjal, pea, cabbage and okra. The state has a unique advantage of producing off-season vegetables in hilly areas, which fetches good price in the market. Major spices are ginger, garlic, turmeric and chilly. Details of area, production and productivity of major Horticulture crops in the state are as under (2015-16): Crops Area (lakhs ha) Production (lakhs MT) Productivity (MT/ha) State Productivity (MT/ha) National level Rank in the Country-in terms of productivity Rank in the Countryin terms of production Fruit 1.753 6.591 3.76 11.70 30th 18th Vegetable 0.898 9.454 10.52 17.30 23th 19th Spices 0.126 0.857 6.82 1.80 01st 19th Flowers 0.013 Loose0.017, - - - Overall 8th and 2nd in cut flowers (including Potato) Cut-1471 lakh no Total 2.790 16.919 Commodity- wise Details of Area and Production of Fruits, Vegetables, Spices and Flowers) Fruits ` Vegetables SN Fruits Area in Production SN Vegetables Area in Production ha in MT ha in MT 1 Mango 35911.50 149727.23 1 Tomato 8550.15 93223.49 2 Citrus 21152.51 88728.72 2 Pea 11822.76 83009.48 3 Pear 13029.11 78778.12 3 Cabbage 6118.12 67568.69 4 Apple 24982.03 61940.80 4 Radish 4995.26 56533.50 5 Peach 7855.77 57933.81 5 Onion 4066.81 41587.06 6 Plum 8837.89 36154.89 6 French bean 5681.54 39953.57 7 Apricot 7954.21 28197.76 7 Cauliflower 3007.04 38484.61 8 Litchi 10253.18 23742.47 8 Brinjal 2494.29 26355.51 9 walnut 17243.84 19322.83 9 Okra 3278.76 24261.28 10 Guava 3367.25 19084.56 10 Capsicum 2472.30 13770.27 11 Aonla 814.10 2369.07 11 Others 11458.24 102371.17 Others 23928.51 93113.89 Total 63945.27 587118.63 Total 175329.90 659094.15 Potato 25889.76 358244.23 12 1 Spices S Fruits N Area in ha Productio n in MT S N Flowers Flowers Area in ha 1 Ginger 4875.64 47120.46 1 Gerbera 93.25 Production Spikes( Loose in Flower Lakh (in no) MT) 899.40 - 2 Turmeric 1407.53 12205.84 2 Carnation 20.46 86.83 - 3 Garlic 1530.45 9768.25 3 Rose 104.70 - 130.18 4 Chilli 2556.43 8607.26 4 Marigold 730.59 - 1499.0 9 5 Fenugree k 568.57 3245.57 5 Gladuolous 280.77 467.69 - 6 Coriander 1146.65 3191.12 6 Rajnigandh a 17.00 - 32.52 7 Large cardamo m 74.51 99.58 7 Lilium 9.25 16.82 - 8 Others 403.82 1500.85 8 Others 79.34 - 86.52 Total • 12563.6 85738.93 Total 1335.3 1470.7 1748.3 0 6 4 1 5. Ranking of Uttarakhand in Horticulture in India Uttarakhand rank first in the country in production of Pear(0.788 lakh MT), Peach (0.579 lakh MT), Plum (0.362 lakh MT) and Apricot(0.282 lakh MT). • Uttarakhand rank second in the country in production of Walnut(0.19 lakh MT) followed by J&K(2.10 lakh MT) . • Uttarakhand rank third in the country in production of Apple (0.62 lakh MT) followed by J&K (13.68 lakh MT) and HP(6.25 lakh MT). • Uttarakhand produce 14.70 crore spikes of cut flowers and rank eighth in the country. • Productivity of spices is highest ( 6.82 MT/ha) in the country against national average of 1.85 MT/ ha. • Uttarakhand rank eighteenth in the country in establishing food processing units. • Productivity of spices is highest in Uttarakhand (7.21MT/ha) against national average of 1.8 MT/ha. • 6. Departmental Infrastructure: Department have 94 Government nurseries for production of quality planting material and seeds out of these 24 nurseries developed as State of art gardens. • 319horticulture mobile teams (Input Centers) for distribution of horticulture inputs and dissemination of technology of the farmers. • 50 community fruit preservation cum training centers. • 03 pasteurized composed production center at Dehradun, Jyolikot and Bhimtal in Nainital for promotion of Mushroom. • 02 Horticulture training center at Chaubatia and Srinagar working at present and 2 new are being setup at Kashipur (USN) and Jarmola(Uttarkashi). • Honey production center at Jyolikot, Nainital. • Uttarakhand Horticulture Marketing Board. • State Horticulture& Forestry University at Bharsar(Pauri) and Agriculture & Technology University at Pantnagar. • 13 KVK for dissemination of technology and extension activities. 7. Agriculture Marketing Infrastructure in the State Uttarakhand Krishi Utpadan Mandi Parishad (UKUMP) is the nodal agency responsible for agricultural marketing in the state. UKUMP has created state-wide network for marketing of agricultural produce with 25 Principal Market Yards, 31 Sub Market Yards and 27 Weekly Markets. To ensure marketing of horticulture produce, 18 separate marketing yards have been established in the state .Under RKVY, 3 Farmer Consumer Markets have been setup in Dehradun viz Majri Grant in Doiwala Block, Danda Lakhond and Nanurkhera in Raipur Block. Government of Uttarakhand has established a separate Uttarakhand Horticulture Marketing Board to assist farmers of the state in Marketing of horticulture produce. Status of APMC Act: The state government has amended the APMC Act, in line with Model Act 2003. The amended Act facilitates setting up of private markets, farmer consumer markets, reduced fee on perishable horticulture produce, contract farming, e NAM for e-trading etc. 8. Cold storages: Total 17 cold storages and 3 CA storages with capacity of 59900 MT have been set up in the state. • • • • • • • • 9. Policy / Administrative Measures in Horticulture Sector: Uttarakhand University of Horticulture and Forestry(UUHF) was established in 2011 at Bharsar, District Pauri. Uttarakhand is the 3rd State to set up separate University for Horticulture and Forestry. Other States are Andhra Pradesh and Himachal Pradesh. Now Karnataka has also set up 4th University for horticulture and Forestry. Single window system has been created to expedite sanction / clearance of projects under MSME. Under Ease of Doing Business, Uttarakhand rank 9th in the country. A separate Horticulture Marketing Board has been setup to promote marketing of horticulture produce and to ensure better price of produce to farmers . To promote protected cultivation especially among small and marginal farmers and hilly areas, Mukhyamantri Sanrakshit Kheti Yojana has been launched during 2011-12with provision of 30% additional subsidy from State budget up to 500 sqm Green Houses per beneficiary. Weather Based Crop Insurance cover has been provided to farmers for apple, litchi, mango, malta, peach, tomato, potato, pea, chilli and ginger. Fruit Wine Policy incorporating a number of fiscal incentives has been promulgated to promote fruit based wineries. Vision Document for Food Processing Sector for next 10 years has been prepared. 10. Status of Food Processing Industry in Uttarakhand ü Four Agri Export Zones (AEZs) have already been declared under the AEZ scheme of Government of India for litchi, floriculture, herbs & medicinal plants and basmati rice. ü Two Mega Food Park (Patanjali Food & Herbal Park Ltd, Haridwar and Himalaya Food park, Kashipur) have been set up under Mega Food Parks Scheme of Ministry of Food Processing Industries. ü Leading players in food processing industry like Nestle, Britannia, Dabur, ITC, Flex Food, Indian Glycol, Apis India have setup their processing facilities in the state with cumulative investments of over Rs. 1000 crore. In addition, there are a number of small and medium sized food processing units in the state. ü The status of Food Processing Industry in the State is as under:- • Total established units: 512 • Horticulture based units 403 • Non horticulture based units 109 11. Policy Framework Governing the Industrial Sector 11.1The MSME Policy, 2015 Uttarakhand State Government has formulated MSME Policy 2015, to provide incentives for setting up of industries including food processing industries which has subsumed the Special Integrated Industrial Promotion Policy 2008 for Hilly & Remote Areas of Uttarakhand. The salient features of the fiscal incentives and concessions provided under the Scheme area) Land development promotional scheme ü Allotment of land for setting up of industrial units on priority basis with availability of general facilities like electricity, road, water supply, connecting roads etc. ü Full concession on stamp duty for purchase / lease of land from industrial areas developed by State Govt. / private sector ü The process of land use change to be simplified b) Special State Capital Production Incentive: Industries making investment in certain areas of the state shall be provided capital incentives depending on the areas- at the rate of 25 percent of the total investment subject to a maximum of Rs. 40 lakh in certain areas and at the rate of 20 percent of the total investment subject to a maximum of Rs. 25 lakh in other areas c) Interest subsidy: Industries (in specified geographies) seeking loan through Banks/Financial Institutions shall be given incentives of loans at concessional rates- of simple interest up to @ 6 percent per annum on term loan, with a ceiling of Rs. 5 lakh per unit per annum to units in some areas and @ 5 percent subject to ceiling of Rs 3 lakh per unit per annum in other designated areas. d) Power Concession to new Industrial Units: All new industrial units (in designated areas) engaged in manufacturing and production of goods including the industrial enterprises engaged in the activities in service sector shall be entitled for 100 percent rebate or exemption on electric bills for a period of ten years. This is not applicable to hotels, resorts, furnaces etc. The industries based on fruit preservation, herbal and medicinal plants and domestic produce shall be given due preference and priorities in this scheme. e) Grant towards transport subsidy in hilly areas: In order to promote industrial units based on raw material produced in hilly areas, the transport subsidy @ 5 percent of annual turnover (maximum of Rs 5 lakh) will be provided by the State Government to compensate the higher cost of transportation for units in designated areas and 3 percent of annual turnover (maximum of Rs 3 lakh) for units in other designated areas. f) State Government will provide grant-in-aid to set up the industrial unit @ 75 percent of expenditure with a ceiling of Rs. 2.00 lakhs per project towards payment of ISO certification, ISI mark, quality marking, BIS & FPO license, trade mark & copyright registration by the national and internationally approved agencies / institutions. 11.2 Mega Industrial and Investment Policy, 2015: Government of Uttarakhand has promulgated Mega Industrial and Investment Policy 2015 to promote large scale units above Rs. 75.00 crore investments. 11.3 Sector Specific State Bodies/Agencies State Infrastructure and Industrial Development Corporation of Uttarakhand Limited (SIDCUL) plays a key role in industrial development of the state- both in terms of policy formulation and infrastructure development. Industries Association of Uttarakhand (IAU) is an apex body of small and medium scale industries of Uttarakhand and assists in the development of small and medium scale enterprises in the state. For promotion and growth of food processing industries in the state, Department of Horticulture & Food Processing is the nodal agency. Beside scheme of MSME,food processing industries are setup under HMNEH and state food processing mission. 12.Technology Interventions:Department of Horticulture & Food Processing, Uttarakhand has been adopting various technologies in different schemes for enhancement of production and productivity and quality of fruit, vegetable, spices and flowers by adopting cluster approach, which include setting up of nurseries, tissue culture labs and distributions of planting material, vegetable seed production, area expansion, rejuvenation of old and senile orchards, creation of community and individual water sources, protected cultivation, INM/IPM, organic farming, pollination support through bee keeping, promotion of mushroom cultivation, mechanization, training of farmers and officials, awareness campaign, post harvest management and marketing and food processing. PHM components includes on farm handling units, cold storages, CA storages, pre-cooling units, ripening chambers, primary processing / value addition units, refrigerated vans, under marketing component rural markets, whole sale & terminal markets, functional infrastructure for collection, sorting, grading packing, establishment of horticulture produce based new processing units, modernization and up-gradation of existing units are taken up. • 13. New Initiatives taken by State State Government has launched several new schemes viz. Apple Mission for cultivation of Ultra High Density Apple, Walnut Mission, Small Nurseries, production of off season vegetables, Vermi compost units etc. • To reduce post harvest losses projects for Rs. 16.5 crore submitted to NABARD under RIDF. • New project for Rs. 700.00 crore has been submitted to Government of India for World Bank Assistance. • Centre of Excellence on temperate fruits for Rs. 5.00 core is being setup under HMNEH by UUHF, Bharsar. • Two Centre of Excellence on Walnut being set up at Chaubatia, Ranikhet and Magra ,Tehri Garhwal. • Farmers are being provided free service regarding crop specific agro-techniques including disease/pest, market and weather information daily through SMS on mobile by Reuters Market Light Company. • 14. Way Forward Doubling income of farmers by 2022. • Convergence with HMNEH, RKVY, MNERGA, PMKSY (Watershed development programmes, minor irrigation for creation of water sources, per drop more crop and other intervention components) . • Enhancing productivity by rejuvenating senile orchards. • Organizing Farmers FIG’s at Village Level, Federations (Farmer Producer Organization/CompanyFPO/FPC) at Cluster/District Level and FPOs will ensure procurement of inputs from self producing agencies like planting material, seeds, fertilizers, pesticides, machines & tools, packaging material etc),arrangement for marketing, setting up of small and medium processing units etc. • Promoting organic farming. • Promoting Horticulture Mechanization to reduce drudgery. • Safety-Net to Farmers a) Market Intervention Scheme b) Weather based Crop Insurance scheme • Promoting Contract/Corporate Farming –by involving Retail houses. • Establishment of Farmer-Consumer Markets/Apni Mandi in Urban locations. • Primary Processing of Commodities (pack house, collection, sorting, grading, pre-cooling etc) at Farm Gate Level. • Development of PHM infrastructure-, integrated pack house, cold rooms/cold storages, CA storage for temperate fruits, ref vans, ripening chambers etc to reduce post harvest losses. • Setting up of Pulp units for Mango, Litchi and Tomato and juice plants for Apple and IQF units for fruits vegetables. • Branding of different produce of Uttarakhand.