ISSUE 10, 2007 For Private circulation only TICHWCfll/DiGlSf Bamboo Cultivation - Potential and Prospects Sangeeta Prasad Mehra^ & L. K. Mehra^ 1. Introduction: restrictive rules. There is a need to integrate the efforts at various levels for evolving workable strategies to p r o m o t e the sector, which w o u l d not only be instrumental in addressing environmental concerns but also economic and livilihood security to millions of people in the country. 1.1 The world market for b a m b o o has been valued at Rs. 50000 crore (US$ 10 billion) in 2001 and is expected to g r o w to Rs. 100,000 crore (US$ 20 billion) b y 2015. India, China a n d M y a n m a r t o g e t h e r h ave a b o u t 198 lakh ha of b a m b o o reserves - 80 percent of the w o r l d ' s b a m b o o forests. Of this, India's share is about 45 percent. However, its share in global market is only 4.5 per cent. On the other hand, China alone has captured 50 per cent of the World market, exporting as much as 20 million tonnes of varied products a year. India, a l m o s t 20 years b e h i n d China in commercial production, produces only 3.5 million tonnes of bamboo a year. 2. 2.1 A vailability of Land: As per the National Remote Sensing Agency, about 2 0 % of the geographical area of the country, i.e. a b o u t 6 3 8 . 5 l a k h h a . are c l a s s i f i e d as w a s t e l a n d s C o v e r i n g 1 0 % of this land under b a m b o o cultivation can achieve the suggested target of 60 lakh ha under the National Bamboo Mission. 1.2 The Govt, of India, has lately c o m e t o regard bamboo as an easily manageable export item that provides high yields, has multiple uses and has the potential to provide e m p l o y m e n t for millions. In this backdrop, the Planning Commission, Govt, of India, has accorded special status to bamboo a n d launched ' National M i s s i o n o n B a m b o o Technology and Trade Development', The target is to capture 27 % of the w o r l d b a m b o o market by the year 2015. 2.2 Availability of Technology: The 'National Mission on Bamboo Application (NMBA)', established under the TIFAC (Technology Information, Forecasting and Assessment Council), Department of Science and Technology, New Delhi has been s u p p o r t i n g b a m b o o sector t h r o u g h t e c h n o l o g i c a l u p g r a d a t i o n , d e v e l o p m e n t of indigenous capacities/enterprise and linkages with markets. The agency presently is working with about 60 partners, mainly Research institutions. Enterprises and Govt, agencies, across the country for technological intervention and demonstration of bamboo as a business venture, both at cultivation and utilization level. Venture capital support is available t h r o u g h t h e agency, for i n t e r e s t e d entrepreneurs to establish hi-tech bamboo industry in the country. 1.3 In tune with the Government policy, NABARD has developed a 'Bamboo Development Policy' to give focussed thrust to develop the sector w i t h an integrated approach. The major objective is to commercialize Bamboo at farmers level. The policy e n v i s a g e s c o m p r e h e n s i v e d e v e l o p m e n t of bamboo resources as a marketable commodity and a linkage of bamboo farmers with bamboo artisans. 1.4 In the context of the above, it is high time w e put bamboo into industrial pedestal with appropriate tie-up arrangements w i t h b a m b o o based industries viz. paper, handicrafts and the n e w e m e r g i n g areas of e c o - f r i e n d l y p r o d u c t s e.g. corrugated sheets, bamboo tiles, bamboo f l o o r i n g , b a m b o o f a b r i c , etc. T h e r e is h u g e u n t a p p e d p o t e n t i a l in t h e w a s t e l a n d s u n d e r purview of Farm forestry/ Agro-forestry in the country. However, the progress under the sector is hampered with lack of information, supply chain m a n a g e m e n t , lack of i n s t i t u t i o n a l c r e d i t and 2.3 Availability of Market: According to the Planning Commission, the annual market potential for value added bamboo products in India is Rs.4,463 crore as against the current market size of Rs. 2043 crore. This is projected to touch Rs.26,000 crore by 2015. The c u r r e n t size of b a m b o o use in A g a r b a t t i industries itself has been estimated at Rs. 135 crore and bamboo utilized in ice-cream industries, kites, crackers, lathies and fishing rods has been estimated to the tune of 10 lakh tonnes annually. Manager^'2 Karnataka RO 'i!S®^MM^W«J**W*^ Potential for Bamboo Cultivation : 26 ^ftlilQIcT/^l^^ll? The Indian bamboo shoots industry is expected to g r o w at the rate of 2 5 % per annum and capture a market worth Rs. 300 crore by 2015 f r o m the current level of Rs. 4.8 crore. A large potential Country's bamboo economy is expected to grow by over 15% to touch Rs. 26,000 crore by 2015. • Bamboo can replace the projected import of timber to the tune of Rs.30,000 crore in the next 20 years i.e. 2025. • • • • The financing institutions can play a significant role . in greening India under the behest of b a m b o o cultivation . Various financing models are available to cater to the need of different clientele, viz. T h e m a r k e t size f o r b a m b o o p l y w o o d is expected to g r o w to Rs. 500 crore in 2015 f r o m Rs. 200 crore in 2001. It has been estimated that the total market size of bamboo flooring materials will rise to Rs. 1,950 crore by 2015 f r o m the current Rs. 200 crore. The demand for b a m b o o pulp is expected to grow to Rs. 2,088 crore by 2015 f r o m Rs. 100 crore in 2001. The demand for b a m b o o furniture is expected to grow to Rs.3,265 crore in 2015 f r o m Rs.380 crore in 2001. • By 2015 b a m b o o scaffolding requirement will rise to Rs.861 crore and for housing purposes the demand will be Rs.1,163 crore. • The demand for b a m b o o in road construction will rise to Rs.274 crore and for b a m b o o grids the demand will be Rs. 100 crore by 2015. • The demands for miscellaneous industry viz. ice cream sticks, fire crackers, b a m b o o lathis and ladders will rise to Rs. 600 crore by 2015. • Finance for Nurseries - Centralized/ Decentralized/ Tissue Culture Unit etc. • Captive Bamboo plantation by SFDC and Industries • Contract farming • Area Development Project • Joint Forest Management (JFM) - under (RIDF) • Forest regeneration/ development- under (RIDF) • Financing to Village Forest Committees (VFCs)/ Self H e l p G r o u p s - u n d e r m i c r o - c r e d i t programme. • Cluster D e v e l o p m e n t Craftpersons for Artisans User and Financing for nursery and plantation of bamboo are covered under 'Direct Finance to Agriculture' under Priority Sector Lending. 3. export market exists for shoots in Japan, Hong Kong, Singapore and Thailand. The Projected demand and supply of Bamboo as envisaged by the Planning Commission is given in table 1. 2.4 Credit Prat 4R.^WH%g Further, the financial requirement during the Xth plan for Bamboo Mission is estimated at Rs. 2608 crore under various components, wherein, Rs. 2000 crore has been earmarked for plantation in 20 lakh ha. of area. Considering the cost of plantation as 20,000/ha, the financial gap under the sector is to the tune of 2000 crore, which needs to be supported through credit by way of building private public partnership for investment. Table 1: Bamboo - Projected Demand and Supply • ajgrio, 2007 NABARD Initiatives in Bamboo Sector: 3.1 NABARD, as an apex bank for development of agriculture and rural sector, has identified bamboo sector as " Thrust Area " and has taken distinct p o l i c y i n i t i a t i v e s f o r c r e a t i n g an e n a b l i n g environment for promoting this sector under farm and n o n - f a r m sector. NABARD's Bamboo D e v e l o p m e n t Policy a i m s at m a i n s t r e a m i n g b a m b o o f a r m i n g , p r o c e s s i n g and m a r k e t i n g . Interventions are taken under four broad areas viz. Policy; P r o m o t i o n a l and F i n a n c i a l ; Capacity Building and N e t w o r k i n g and Coordination. A ' B a m b o o Cell' has been created at NABARD's Head Office, M u m b a i with Nodal Officers in all the Regional Office for a concerted effort. Potential: The Bamboo Mission envisages expanding the area under B a m b o o plantation by 20 lakh ha. during the X Five Year Plan (10 lakh ha in forest area and 10 lakh in areas outside forest) and overall 60 lakh ha by XI Five Year Plan. This calls for a massive r e q u i r e m e n t of quality planting material viz. 100 crore during the X plan period and another 200 crore during IX plan period. This itself requires an investment to the tune of about Rs. 500 c r o r e . A p a r t of t h e r e q u i r e m e n t is expected to be met through credit. 3.2 A p e r s p e c t i v e p l a n f o r f i n a n c i n g b a m b o o plantations by banks in 3 lakh ha potential states. 27 ISSUE 10, 2007 For Private circulation only • • - ' » . . TECHNIGAl DIGESf with an investment outlay of Rs. 1,000 crore during Tenth Plan p e r i o d w a s f o r m u l a t e d . Bankable Model Projects for Bamboo have been prepared to suite different areas/ cliental. A n Area Development Project for Bamboo cultivation in Barak valley of Assam has been developed which envisages covering 2500ha of area under bamboo cultivation over a period of three years. RIDF assistance has been provided to APFDC for raising bamboo in degraded forest. 4. Techno - Economic Parameters of Financing: Bamboo Organic manure mixtures along with fertilizers containing NPK should be applied in the planting pit at the time of planting. Weeding and protective irrigation are essential in the first t w o years of p l a n t a t i o n f o r s t a b i l i z a t i o n of the plant. The plantation needs to be protected f r o m fire and biotic pressures for initial 3-4 years, thus fencing or d i g g i n g c a t t l e - p r o o f t r e n c h a r o u n d t h e plantations is advisable. c. Management: Proper management practice is the key to the success of bamboo plantations as the yield realized f r o m the b a m b o o plantations is d i r e c t l y d e p e n d e n t on t h e soil n u t r i t i o n and cultural operations. 'An eight year bamboo clump can have about 90 culms, of which 70-80 culm are destroyed, if left unmanaged'. Bamboo is a h e a v y f e e d e r a n d e v e n a rich soil b e c o m e s d e p l e t e d after a f e w y e a r s . On an a v e r a g e . Bamboo plantations removes about 2300 kg of nutrients per ha in a period of 6 years. Therefore, soil supplements in the f o r m of organic manures and fertilizers must be added to the clumps every year. A little bit of soil working around the clumps enhances production of new culms and is a must management practice. From 4th year onwards, the d e a d / d y i n g c u l m f r o m t h e c l u m p m u s t be r e m o v e d t o a v o i d c o n g e s t i o n . P r u n i n g of excessive t h o r n s is necessary to maintain a hygienic conditions of the clump and must be carried out every year f r o m 3rd-4th year onwards. Insect and diseases, if any, need to managed, t h o u g h b a m b o o s have c o m p a r a t i v e l y f e w problems of insects or pests. d. Harvesting: Well-managed commercial bamboo plantation matures within 4-5 years and can be harvested every year. Selection fellings rriust be practiced, and should be done in summer months. For harvesting, the mature culms should be cut at a height between first and second node above the ground level. Harvesting should be done in a horse shoe-fashion (instead of peripheral cuttings) to avoid congestion of the clump and give space for the newly emerging clums and thus give a better yield. As a good management practice, a few mature culms should be left well distributed in the c l u m p to provide support to the current year's culms. All immature culms (less than 4 years old) must be left to mature. 4.1 Nursery: Bamboo can be raised through seeds, rhizomes, c u l m cuttings as also t h r o u g h tissue culture t e c h n i q u e s . Nursery c o u l d be centralized or decentralized. While Centralized nurseries are expected to be developed by Forest Department. Forest Development Corporation and E n t r e p r e n e u r s , d e c e n t r a l i z e d n u r s e r i e s are expected to be taken up by VFCs, SHGs or farmers to cater the local requirement of bamboo seedlings. The Cost of for raising a decentralized nursery (1000 plants) is about Rs. 25,000. Detail break up of the unit cost and economics is given in Annexure I. 4.2. Bamboo Plantations: Bamboo can be raised profitably on wastelands to yield recurring income for 20-30 years. The techno- economic parameters of raising bamboo is given as under: a. Site and Composition : Bamboo is non-exacting, hardy and drought-resistant in nature and posses a wide range of soil/climatic adaptability and g r o w on marginal and degraded land, elevated ground, along field bunds and river banks f r o m coastal regions to mountain slopes (upto 4000m above m e a n sea l e v e l ) u n d e r m o i s t t o s e m i - a r i d conditions. Bamboo however, cannot withstand saline soils, alkaline soils and waterlogged areas. Bamboo can be raised as block plantations in degraded slopes, watershed areas, and cultivable w a s t e s or u n d e r j o i n t F o r e s t M a n a g e m e n t programmes. It also c o m b i n e well w i t h grasses, pulses, oilseeds, soyabeans and shade crops like ginger turmeric, cinnamon, etc. and can be raised under various agro-forestry systems. b. Planting Tecimique: Monsoon is the best time for planting of the nursery-raised plants in the field. About 1 year old plants may be planted for better survival. The commercial spacing recommended to obtain good crop varies f r o m 5m x 4 m to 6m x 6m. Plants are planted in pits of 45 cm x 45 cm x 45 cm size. The cost for raising Dendrocalamus strictus on wastelands, under rain-fed condition is Rs. 23,600 per ha. (capitalized for 6 years). The detail break up of unit cost is given in Annexure II. ^niiiiii;^ i i i i ^ 5. Limitations and Required Interventions: b. Lack of awareness: Bamboo has been traditionally raised, to a limited extend, in village commons and homestead gardens. However, it still remains a forest species in respect of industrial use and commercial plantations. There is a need for changing the 'forestry mindset' to the 'farming mind set' and creating awareness on the commercial viability and profitability of the species. In this regard, extensive awareness and capacity building programme are required at all level viz. farmers, extension workers, banks, user i n d u s t r i e s , etc.. T h e Research & Development (R&D) under the sector needs to be complimented with awareness creation, demonstration and extension supportfor a multiplier effect. SHGs, VFCs, Farmers clubs, etc. could be used as vehicle for such extension programme. Harvesting and Transport restrictions: It is evident, to meet the domestic and International demand of bamboo, the 'raw material' has to necessarily come from the private sources. The Indian Forest Act. 1927, defines bamboo as a " forest produce", and the species attracts the felling and transit restrictions under most of the States Forest Rules. Procedures f o r taking p e r m i t s a r e , m o r e often t h a n n o t , cumbersome, time consuming and harassing. These legal restrictions, detract farmers/ entrepreneurs f r o m raising bamboo on their private wastelands on commercial basis and is one of the most crucial issues in promotion of bamboo sector in the country. The probable option lies in exemption of Bamboo from the restrictive harvesting and transit rules, as in case of many other agro forestry species or at least simplifications of these rules. c. Land Ceiling Act: The Land Ceiling A c t is one of the deterrent factors for entrepreneurs interested in taking large-scale industrial plantations of the species. Plantation crops s u c h as tea, coffee, cardamom and rubber have been relaxed f r o m the purview of Land Ceiling Act. Similar relaxation needs t o be extended for the b a m b o o sector. d. Policy for leasing revenue wastelands for forest plantations : A l a r g e p o r t i o n of a v a i l a b l e wastelands, which could be profitably used for raising b a m b o o , are under t h e c o n t r o l of t h e Revenue Department. Such lands are neither being Prsfr 4R^HH %g; developed by the Department nor leased away to the interest entrepreneurs for development. There is therefore desirable that the State Govts, evolve s u i t a b l e p o l i c i e s f o r l e a s i n g of t h e r e v e n u e wastelands to the farmers/ SHGs/ entrepreneurs/ industries for raising forest plantations for industrial use. Andhra Pradesh, Tamilnadu and, Chattisgarh have come up with such policy. Other States may also f o l l o w t o e n c o u r a g e t h e public p r i v a t e partnership for greening the wastelands. Despite t h e available potential under the B a m b o o sector viz. availability of land, availability of technology, availability of credit, as also. Government thrust, the sector has not gained the desired m o m e n t u m in the country. The main limiting factors in the p r o m o t i o n of the sector are: a. 3 t ^ 10. 2007 e. Need for Organized Supply Chain Management: Though a vast market exists for the bamboo sector, there is a need for an organized market with assured m i n i m u m price regime to encourage the small farmers t o take up bamboo plantations on their private wastelands. Contract farming by user industries needs to be encouraged. There is also a need f o r p r o m o t i n g 'Bamboo Governance' and encouraging the b a m b o o products at the Govt. Offices, Corporates and Public-sector undertakings to pave the w a y for large scale demand, supply, production of b a m b o o - based utility items and regeneration of b a m b o o b y strengthening the supply chain /. Need for rationalization of taxation and price fixation: In some States, viz. Karnataka, bamboo raised under private sector is subject to tax by the forest d e p a r t m e n t , as also b y the APMC. This needs t o be rationalized. Similarly, the price fixation m e c h a n i s m b y the Forest Department must be rationalized to ensure suitable remuneration to growers viz. a viz. the industries. g. Need for incentives for raising bamboo plantations: Cultivation of Bamboo under the farm sector is a n e w activity and may be given fillip through extending capital/ interest subsidy to the f a r m e r s / entrepreneurs f o r raising b a m b o o plantations. 6. Conclusion: From a 'poor mans t i m b e r ' , b a m b o o is fast emerging as a 'Green Gold'. Markets are growing and offer new opportunities for p r o m o t i o n of bamboo as alternative t o w o o d as also other products. This is a golden opportunity for the farmers, entrepreneurs, industries. Banks, as also govt, agencies to tap the potential under the sector for economic, ecological and social gains. However, policy a n d operational bottlenecks, viz. restrictive harvesting and transit rules, land ceiling act, double taxation of b a m b o o , non-remunerative price regime, lack of organized market, lack of awareness a m o n g entrepreneur a n d banks, etc. needs t o be addressed to give the desired momentum to the sector. ISSUE 10, 2007 For Private circulation only TECHHICftl/DiMST Annexure Unit Cost of Decentralised Bamboo Nursery of 1000 Sq. Mt. (10000 seedlings) Techno-economic parameters Avg. wage rate Rs. 50 per Man Day Interest on term loan 12% margin 1 0 % of the unit cost Species Dendrocalamus strictus. Spacing : 6m x 6m No. of plants per ha :278 Mortality replacement :10% No. of harvestabie plants per ha : 90% Unit S. No. Particulars of Works A 1 2 3 4 f 5 if 6 7 8 Capital Cost 2MD Land preparation/ Sitr development LS Fencing (Bamboo/ live hedge) LS Repair and maintanence of irrigation source LS Tools and Implements LS Water Tank - 1 10 MD Layout and preparation of poly beds ( 24 beds of 10x 1 m size) LS Shading Net of 80% shade with installation or thaching by grass Subtotal Contigencies (5% of subt total) Total Capital Cost (A) Recurring cost @Rs.1000/year Land rent (1000 Sq. mt) 2MD Preparation of seed beds (2 beds) of 10m X imt LS Seeds Polybags (6x9 of 100 gauge) 200 PB/Kg Pot mixturesand manure, earth (2 kg/bag) OM includingLoading ., unloading 2 0 M T @ 120/Tand 10 MD fertiliser, 10 gms/ polybags (in two doses) 100 kg Plant protection chemicals LS Sowing on seed beds 1 MD Weeding and Hoeing 5MD Picking up from germi beds 2MD Filling Polybags 50 MD @200 PB/ MD Irrigation (labour cost) 10 MD Application of fertiliser 2MD Application of pesticides/ insecticides 2MD Maintainace of path and channels 2MD Maintenace of pumpset LS Subtotal Supervision/ management cost® 10% of subtotal Total recurring Cost (B) Total (A + B) Margin @ 10% Bank Loan B 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Income Sale price per seedling/ Poly bag Installed capacity of nursery Capacicity utilzation lYr. II Yr. onwards Cost (Rs.) 100 500 500 800 2000 500 4000 8400 420 8820 1000 100 1000 2400 2900 1000 200 50 250 100 2500 500 100 100 100 2500 14800 1480 16280 25100 2510 22590 3 10000 60% 85% 30 a t ^ 10,2007 tftsraiFf/sS^*^ , . Prat MR-^iid-i %^ Annexure II Unit Cost of bamboos (Dendrocalamus strictus) in Wastelands (One ha model) Techno-economic parameters Avg. wage rate Rs. 50 per Man Day Interest on term loan 12% margin 10% of the unit cost Species Dendrocalamus strictus. Spacing : 6m x 6m No. of plants per ha :278 Mortality replacement :10% No. of harvestable plants per ha : 90% S. No. Particulars of Works Cost (Rs.) per year Unit 1 2 3 Total (Rs.) 4 5 6 1 Site preparation, alingment and staking LS 2000 2 Digging of pits (45 cm x 45cm x 45cm) and refilling @ Rs. 4/pit 1112 112 3 Cost of Plants including transport and replacement plants ( 278/28)) Rs. 3.00/ plant 834 84 4 Planting & Replanting expenses @50 plants per MD 6MD/1MD 300 50 5 Cost of Insecticide LS 150 6 Cost of FYM @ 5kg / pit/year Rs. 0.3/kg 417 417 417 417 417 417 2502 7 Cost of Fertilizer @ 0.1kg / plant/year Rs. 8 / kg 222 222 222 222 222 222 1332 8 Weeding in first two years 10MD/8MD 500 400 9 Soil Working (per year) lOMD/yr 500 500 10 Pruning from IV year onwards. 10 MD 11 Plant Protection LS 12 Irrigation cost - 3 per annum for 2 • years® Rs. 750/- per irrigation 13 Fencing @ Rs.6/- RM / cattle proof trench LS Sub Total Contingency @ 5% Grand Total (Unit cost taking first 6 yrs of expenditure) round off 2000 1224 918 ^ 350 150 250 250 2250 2250 900 500 250 500 500 500 3000 500 500 500 1500 250 250 250 1500 4500 2500 2500 11035 4285 1389 1889 1889 1889 22376 552 214 69 94 94 94 1118.8 11587 4499 1458 1983 1983 1983 23495 11600 4500 1500 2000 2000 2000 23600 Unit cost per ha. with a spacing of 6m x6m Margin @10% Bank loan @ 90% 23600 1160 450 150 200 200 200 2360 10440 4050 1350 1800 1800 1800 21240 Recurring Expenditure : # Rs. 3700/- towards the maintainance (pruning, soil working, fertilization) and harvesting cost. ^•^-4^ ISSUE 10,2007 For Private circulation only TECHNIGAl DIGEST PLANTATION & HORTICULTURE issues. The important issues identified at the national level are indicated below : • The Thirteenth Business Development IVleet of Plantation and Horticulture Discipline of NABARD was held at Tocklai Experimental Station, Jorhat, Assam during 20 - 21 November, 2006. The meet was i n a u g u r a t e d by Dr K.G.Karmakar, MD, NABARD. He stressed on the need to achieve financial inclusion by involving all agencies and the people. He also stated that horticulture and plantation / tree based farming models are best suited for the North Eastern Region and we need to nurture good NGOs to take this mission forward. Dr. M.Hazarika, Director, Tocklai Experimental Station, in his address, stated that the future of the Indian tea industry lies in the production of value added teas, development of diversified products from tea and in reducing production cost. Dr P.G.Rao, Director, Regional Research Laboratory(RRL), J o r h a t also a-ddressed the participants and highlighted the thrust areas of research being undertaken by RRL, Jorhat. Presentations were made by Dr.S.S.Bagel, Vice Chancellor, Assam Agricultural university, Jorhat on New Vistas of Agricultural Research in India with an accent on C o m m e r c i a l P r o d u c t i o n and Processing of Horticultural Crops of North Eastern States and by Dr.Jayanta Madhab, Advisor to Chief Minister f Assam, on the Prospects & Problems of Horticulture Development in the North East . The business session of the meet discussed the state wise developments and the policy and operational ^ ^ • ^ Non-availability of adequate quantity of quality planting materials. • Inadequate extension services from the State G o v e r n m e n t s including farmers training on modern technologies, post harvest handling, etc. • Absence of adequate marketing infrastructure. • Price fluctuation in horticulture products. • Inadequate post harvest management facilities including processing infrastructure. • Grossly inadequate manpower at bank branch level, particularly technical to take care of horticultural projects. • Banks' apathy towards horticultural activities. • Lack of entrepreneurship acceptable to the banks in most states. • Inadequate coordination amongst different agencies such as those concerned with horticulture development with institutional credit facilities. • Insurance coverage. • Non availability of updated land records to facilitate mortgaging. • Small fragmented land holding. • Stronghold of middlemen in marketing the horticultural products. • Poor connectivity from farms to road heads to markets. ' financing A field visit was undertaken to a tea estate and a tea factory run by Tata Tea. The diversification programme within the tea estate into floriculture and allied agricultural activities, initiated by Tata Tea gave the participants a first hand insight on the enterprising ability of the Company in their effort to revive the tea industry. ^ •afe 10, 2007 ^te^pf/sS^te Prsfr "qft^jrcR %^ , WATER RESOURCES DEVELOPMENT AND MANAGEMENT DISCIPLINE Tlie Business Development Meet of Officers of Water Resources Development and Management Discipline w a s h e l d at W a t e r T e c h n o l o g y C e n t r e (WTC), Coimbatore f r o m 7 - 9 August 2006. The objective of the meet was to take stock of the changing scenario, make plans for the future and to draft a plan of action for 2006-07. The Meet was attended by 36 officers f r o m various Regional Officers and HO of NABARD. The Meet was inaugurated by Shri K.V. Ragavulu, CGM, Tamil Nadu RO. In his inaugural address Shri Ragavulu flagged issues like pricing of water, efficiency of power and irrigation for discussion. He also touched upon the Vaidhyanathan C o m m i t t e e and the X Finance Commission. Dr. M.V. Rangaswami, Director, Water Technology Centre, Tamil Nadu A g r i c u l t u r a l University(TNAU), in his address, emphasised on the sustainability aspects of water resources management projects. He highlighted the urgent need for water resources management t h r o u g h the use of micro irrigation system. He feared that Tamil Nadu may soon become another desert as the water table had gone d o w n in many parts of the state. Shri J o h n Kurien, CGM, TSD gave a brief presentation on the overview of activities of WRD&M/MI discipline. He also released the national status paper prepared on Minor Irrigation during the occasion. T h i s w a s f o l l o w e d by presentations by resource persons from Central Ground Water Board, Ministry of Agriculture, Go!, faculties from Water Technology Centre, TNAU, Jain Irrigation Limited and senior officers in the Irrigation sector. Shri John Kurien guided the deliberations of the Meet and spoke in detail on the Vision for Future for the Water Resources Development and Management Discipline Officers. S o m e of the i m p o r t a n t national level issues that emerged during the meet are : • Exploringthepossibility of supporting micro level s t u d i e s in o v e r e x p l o i t e d areas by t h e State Government under R&D Fund of NABARD. • Ensuring exploration of recharging ground water in project areas, extraction of water only f r o m deeper aquifers by incorporating the same as a part of our terms and conditions f o r projects sanctioned under RIDF • • w h e r e g r o u n d w a t e r is o v e r e x p l o i t e d . Categorisation of blocks as per GEC-1997 to be notified to all SLBCs for compliance. Emphasis on issues like ground water legislation, participatory irrigation management, revival of failed wells c o m p e n s a t i o n scheme and c o n j u n c t i v e use of w a t e r specially in canal c o m m a n d areas. P r o m o t i o n of m i c r o i r r i g a t i o n a c t i v i t y f o r s u s t a i n a b l e u t i l i s a t i o n of w a t e r r e s o u r c e s especially in critical and over exploited ground water areas and other water scarce areas. There is a need for standardisation of low cost micro irrigation systems and their wide scale availability. Ground water governance is the need of the hour. Some states like Govt, of Andhra Pradesh has enacted APWALTA 2002 & 2004 to promote water conservation, regulate exploitation and use of ground and surface water. Formation of WUAs should be made mandatory and they may be involved right from the planning stage and overhead and maintenance should be entrusted to t h e m . The security deposit / power connection charges and recurring charges should be rationalised in order to enable small / marginal farmers to be able to use power supply. This is in view of the n o n - a v a i l a b i l i t y of p o w e r ( b o t h in t e r m s of quantity and quality) which is acting as a major deterrent for operation of agricultural pump sets. Impact assessment studies of Ml investments and correction action are required in some states The existing MIS needs a relook to capture the f l o w of i n s t i t u t i o n a l f i n a n c e under d i f f e r e n t investments of Ml discipline. F gllWPWWtf^,^ J i - m ^ ^ ^ ^ , ••m • ^^^^^^^ Examining the technical details of efficient and low cost foreign made p u m p sets since the same are not eligible for NABARD refinance due to lack of BIS certification. . •«• MJ^^^H Revisiting the existing NABARD circulars on eligible investments in critical areas and areas 33 "—*— 1 .iji f 1 1 ^ ^ ISSUE 10, 2007 For Private circulation only TICHHICftl/DIUEs" * - t'*-^:^t'ig^ INFORMATION TECHNOLOGY IN DAIRY INDUSTRY NABARD has supported a research Project for using The s o f t w a r e " H e r d m a n " used for analysing t h e i n f o r m a t i o n Technology in Dairy Sector. data f r o m the village centres, provides the following report: The project has t w o major parts viz., ^ / , (i) Breed Master : Breed-wise data, (ii) Farm Master : A. Herd Health : The first major part is to collect Farm-wise data, (iii) Staff Master : Staff-wise data, data on health of animals, e x a m i n e the clinical data (iv) Parameter Master : Parameter-wise data and (v) as revealed f r o m blood and dung samples collected, Source Master : Source-wise data. apart f r o m individual animal data and w o r k out the average for each village (treating each village as a Collection of Data and Follow- up herd). The findings in each village is c o m p a r e d w i t h accepted norms and the p r o b l e m s existing in each An action list generated on the animals tells the village village is identified and solutions s u g g e s t e d . This level worker, which are the animals to be examined has b r o u g h t out revealing results. For e x a m p l e , in for heat or pregnancy, which animals are expected to a village Blood calve etc. An alarm list is also generated which gives iron him a list of animals which are having delayed heat, the Corpuscles Haemoglobin counts are low and Red indicating fertility problems, low milk yield etc. deficiency. This result was further c o n f i r m e d f r o m e x a m i n a t i o n of f a e c a l s a m p l e s , w h i c h showed This is an excellent tool in the hands of paravet.s and presence of w o r m s w h i c h suck b l o o d and reduce iron level in b l o o d of animals. veterinarians, w h o supervise the village level workers, Suitable remedies as they can easily identify and treat the animals before have been suggested. they actually become sick. In dairy farming, if a heat Similarly, the study has b r o u g h t out that, average is missed (animal not inseminated), 21 days milk c a l v i n g i n t e r v a l d i f f e r s b y m o r e t h a n 90 d a y s production is lost. b e t w e e n villages indicating that, in s o m e villages some effort has been made to record the observations breeding m a n a g e m e n t needs to be i m p r o v e d . for future use. In For the first time in our country, some area, soil analysis reveals, calcium is adequate and there is no need for calcium supplement in feed of animals. This type of analysis can help to prevent p o o r p e r f o r m a n c e and m i n e r a l m i x t u r e s h a v i n g required ingredients only are used, which saves cost. B. Performance Recording : The second major part is about the performance recording of dairy animals. In our country, the most i m p o r t a n t factor affecting t h e efficiency of animal i m p r o v e m e n t is, lack of records. T h e p r o j e c t has e m p l o y e d suitable h a r d w a r e , w h i c h can be u s e d by v i l l a g e l e v e l w o r k e r s for r e c o r d i n g t h e p e r f o r m a n c e of dairy Data Management animals. The software d e v e l o p e d , can be used by milk unions, private dairy units and even The data is available at three levels. G o v e r n m e n t cattle f a r m s . (1) Development of Software At the farm level, the owner has approximate figures. Animals can have a chip embedded in the body which can store all information. Project envisages r e c o r d i n g t h e data of all animals f r o m villages by field level para-veterinarians by a (2) handheld PC (simputer), w h i c h are transferred to At the livestock centre in the village level which maintains data on all animals. The plan is to PC at the milk union f o r analysis, identification of put-up t o u c h screen so that, farmers will have p r o b l e m s and suggesting remedial measures. access to i n f o r m a t i o n on o w n animals. This '34' ^tetPFr 315=^^ PC also will get results of analysis done at milk (3) union level which will help farmers to understand 3jg; 10.2007. f ^ Ci^ct-l %f At milk union level which maintains all data on all animals covered by it. Our project supports t h e local p r o b l e m s a n d use t h e r e m e d i e s maintenance of data at this level only. However, suggested. For example, iron deficiency and the milk unions is interested in maintaining data reason for this like w o r m infestation. Classifying at village level, so that, feedback to farmers is easy. data breed-wise and unit-wise, generates average From the project, dairy farmers are benefitted results which can be compared with accepted norms and level of performance at the unit or ; through reduction of infection in animals and feeding cost and increase in milk production. village level can be zeroed on. ON FARM RESEARCH ON PULSES - MAJOR FINDINGS NABARD has sanctioned the above R&D project to crop will give higher yield when sown during Tamil N a d u Rice Research I n s t i t u t e , A d a t h a v a i , 15 January to 15 February. T h a n j a v u r D i s t r i c t , Tamil N a d u w h i c h has been completed successfully. O p t i m u m plant p o p u l a t i o n is the basis for higher yield. O p t i m u m seed rate of 30 kg/ ha The existing viable technologies adopted by the pulse is recommended. The gaps are to be filled with g r o w i n g farmers and constraints in a d o p t i n g the p r e - s p r o u t e d seeds t o m a i n t a i n o p t i m u m improved technologies in the Cauvery c o m m a n d area population. of T h a n j a v u r a n d N a g a p a t t i n a m d i s t r i c t s w e r e identified through a comprehensive survey conducted a m o n g the selected farmers, f o l l o w e d by on-farm experiments conducted during 2000-2003. There is significant improvement in adoption of the technology by the selected farmers when compared to pre-project survey. Major findings that emerged f r o m the studies are follows: 1. To prevent the spread of seed borne diseases, pre-seed treatment with fungicide/ bio-control agent is to be resorted. For this seed treatment with Trichoderma viride @ 4 gm/kg of seeds or Pseudomonas @ 10 gm/kg or Carbendazim @ 2 gm/kg must be done to prevent root rot disease. For leaf crinkle disease, spraying with Dimethonate @ 500 ml/ha is recommended. Pulses are g r o w n in rice-fallow utilising the To control leaf beetles and pod borer, Neem residual moisture and the moisture obtained Seed Kernel extract @ 5% or Neem Oil @ 3% f r o m dew. The seed is broadcasted in the can be sprayed. standing rice field, 5 to 10 days before the harvest of rice w h e n t h e soil m o i s t u r e is Foliar spraying of 2 % ADP -t- 40 PPM NAA on o p t i m u m , i.e., seed should get embedded in 25 and 40 Days gives higher grain yield in rice- wet waxy layer. Black gram and green gram f a l l o w black g r a m (ADT3) w i t h increase in are the t w o main pulses g r o w n . number of pod on plant and in number of seeds In black gram, high yielding varieties like A D T 1 , was 639 kg/ha with m i n i m u m of 375 kg/ha and ADT2, ADT3, ADT4 and in green gram ADT2 m a x i m u m of 1250 kg/ha. per pod. The average yield of sample farmers 2. and ADT3 are f o u n d to be suitable for riceFor new Cauvery Delta area where irrigation fallow situation. facility is available, black gram variety ADT5 is 3. To realize higher yields f r o m rice fallow, the highly suitable through suitable foliar spray of correct time of sowing is very important. The nutrient mix. ^ ^ ^ — • ^ ^ 10, 2007 For Private circulation only TECHNICAL DIGEST INCENTIVISING FARMERS FOR ORGANIC FARMING B.K. Samal and H.N. Bhuyan Organic farming is a production system of crops that avoids the use of synthetic and chemical inputs like fertilisers, pesticides, growth regulators and livestock feed additives. Application of genetically modified organisms and irradiation of f o o d stuffs are prohibited under organic farming system. It is a system approach utilising natural cycles and biological interactions for c r o p p r o d u c t i o n and p r o t e c t i o n . This m e t h o d of farming produce f o o d for healthy consumption and at the same time protect the soil and environment. India as a leading agriculture producer and with a tradition of organic farming has unique opportunities to capture growing organic markets both in fresh and processed f o r m s , in the domestic and export market. However, desired growth is not there due to lack of awareness and constraints faced by farmers for going organic. Under the c i r c u m s t a n c e s , NABARD m a n a g e m e n t Committee in one of its decisions advised TSD to examine if incentivisation is required for encouraging farmers to go in for organic farming and to identify areas of incentivisation if required. remain unbroken after pounding and weight more with less volume indicating higher density. Rice recovery ratio is higher (100 : 70) against the inorganic (100 : 60). 4. Organic farming improves soil qualities f r o m physical chemical and biological point of view. 5. The National Project on Organic components. Different subsidy schemes related to With organic farming the yield gets stabilised after the end of the conversion period (2 to 3 years). The differences in yields and economics of organic and conventional systems are only marginal and organic systems offer comparable productivity. farming have been floated/ Government of Maharashtra. 6. Major cost components for organic production are i n p u t s like c o m p o s t / v e r m i compost, certification, transportation, storage, cleaning, sorting, packing and marketing, which makes organic cultivation higher than conventional farming. 7. 1. organic i m p l e m e n t e d by G o v e r n m e n t of India and In an attempt to examine the issue of incentivising farmers to go for organic f a r m i n g . TSD, HO has conducted one field study in Yavatmal, Amaravati and Pune s o m e selected districts of Maharashtra and interacted with some leading firms that has gone for organic. Major Observations Farming initiated by G o v e r n m e n t of India has limited India has 20 crores potential customers for ; o r g a n i c p r o d u c t s t o be t a p p e d . T h e r e is increasing d e m a n d for organic food items in . Mumbai market with an annual demand growth - of about 4 0 % . The growth in other Indian cities is also very fast. 8k Total a n n u a l m a r k e t f o r organic p r o d u c t is around $ 13 billion. In developed countries, the organic f o o d trade represents about 2 % of the total f o o d trade. Indian e x p o r t markets in European countries including U.K., USA and Japan are expanding. 9. The retail prices of organic items are significantly higher than the regular ones. 2. 3. Inadequacy of i n p u t material availability is n o t i c e a b l e . C o m p o s t / v e r m i c o m p o s t is produced in the villages mostly for o w n use; no commercial unit is there in any of the villages c o v e r e d . S o m e f a r m e r s w h o d o not have sufficient or any cattle, prefer to stay inorganic. Physical quality of grain/product improves under organic s y s t e m of p r o d u c t i o n . Rice grains Deputy General Managers, TSD, HO 10. Agencies like Eco-farm, Maharashtra Organic Farmers' Federation, etc. facilitate group training to farmers, provide guidance, purchase organic farm products and facilitate marketing. 11. Major constraints faced by the organic farmers are: i. Shortage of input materials including cow dung. iflHiPel/iSSS ii. Certification - cost and complicated procedure. finance for crops grown under organic system and enhanced refinance support. Farmers may be incentivised for rearing more cattle to have more cowdung/compost and also for establishing bigger vermi compost units. iv. Market linkage. V. State support. : Capital subsidy scheme on organic farming may be extended for production of biopesticides and compost from other bio-resources. For realising premium price, two important requirements are : I ' i. Facilities for testing and certifying the produce as organic at local level. Production subsidy may be provided for popularising organic inputs at affordable retail prices as done for chemical fertilisers. ii. Adequate and appropriate market infrastructure exclusively for organic products, so as to prevent mixing up with conventional products and to enable fetching premium prices providing safeguard to the farmers'interest. Creation of infrastructure for testing and certifying at local level. 7. Recommendations 1. Prat MR'MMH %g There is a need to develop separate scale of iii. Capacity building. 12. 3T^ 10, 2007 Cost of certification being costly, may be incentivised. Service providers such as NGOs may be incentivised for providing training, technologies, exploring marketing, etc. Banks may give priority to projects related to organic farming. ^^-4^ Hi-tech market infrastructure - The TN initiative The Tamil Nadu Government is reported to be planning to create terminal markets for agriculture produce with necessary infrastructure in three places, to eliminate post-harvest loss and ensure remunerative prices to farmers. These markets will have facilities such as collection centres, pre-cooling equipment, sorting and treatment facilities, and electronic auction. They will be established in Chennai, Coimbatore and Madurai, declared the State Finance Minister, Mr. K. Anbazhagan recently. Presenting the 2006-07 budget, he said these markets will provide good export opportunities besides enhancing marketing prospects for agricultural produce. He said cold storage facilities will be created for onion in Palladam in Coimbatore district, for mangoes in Krishnagiri district, and for grapes at Odaipatti in Theni district to enable export of these produce. The Government will also take action to produce ethanol in all sugar mills for blending it with petrol. Farmers will be encouraged to cultivate sweet sorghum and sugar beet as these can also be used for producing ethanol. 37 ISSUE 10, 2007 For Private circulation only TECHNICAL/DiGlST BROILER POULTRY IN BODOLAND Thanks to the initiative of our Assam Regional Office , we have formed a nucleus of contract broiler farming in Assam. It all started at a workshop held in Guwahathi. With the great demand for poultry meat, the potential for the activity in Northeast is very high. VHPL accepted our request to establish a centre for broiler farming. RO acted as a catalyst and coordinated the entire plan by liaising with State Government, local people etc. In spite of many teething troubles, persistence paid off in the end. The present position is:. • • • • • Venkateswara Hatcheries Pvt. Ltd ( VHPL) supply chicks, feed, equipment like feeder, waterer, and also help in marketing. So far no bank finance is involved. There were threats from local poultry Industry but our RO has enlisted the support of locals. Our staff in Guwahathi RO really deserve to be congratulated for the unique efforts taken. With the cooperation of Venkateswara Hatcheries in Kolkotta, persons in 4 districts of Assam were trained on broiler farming. 65 units under contract farming has been established with the help of local authorities. (6 units by Bodo women. (Kokrajar and Chirang districts) Average size of farm is 2000 birds Bodoland Livestock Farming and Marketing Society(BLFM) is providing help for cheap shed construction (Bodo Tribal Council has announced assistance to farmers for poultry farming). Another 100 new groups are being formed and they will take up broiler farming after training. NATIONAL FISHERIES DEVELOPMENT BOARD With the objective of achieving full potentials of Indian fisheries. Government of India has constituted "National Fisheries Development Board (NFDB)" under the Ministry of Agriculture with a budget of Rs. 2,100 Crores during 2006-2012. The board consists of Governing Body and Executive Committee, whereChairman of NABARD is a member of the Governing Body and Managing Director of NABARD is the member of Executive Committee. The Headquarter of the NFDB is at Hyderabad. The objectives of NFDB are as follows: 1. To bring major activities relating to fisheries and aquaculture for focused attention and professional management. 2. To coordinate activities pertaining to fisheries undertaken by different Ministries/ Departments in the central government and also coordinate with the State/Union Territory Governments. 3. To improve production, processing, storage, transport and marketing of the products of capture and culture fisheries. 4. To achieve sustainable management and conservation of natural aquatic resources including the fish stocks 5. To apply modern tool of research and development including biotechnology for optimizing production and productivity from fisheries 6. To provide modern infrastructure mechanisms for fisheries and ensure their effective management and optimum utilization. 7. To generate substantial employment 8. To train and empower women in the fisheries sector 9. To enhance contribute offish towards food and nutritional security.