VALUE CHAIN ANALYSIS FOR BANANA IN AP
VALUE CHAIN ANALYSIS FOR BANANA IN AP
Present
status
AP stands
first in the nation in banana cultivation with 2.6 lakh acres under cultivation
with 64 lakh MT production. Rayalseema with Pulivendala as hub emerged as major
cultivator of Robusta variety (green banana). The other varieties grown in the
state are Chekkarakeli, Karpuram, and Amruthapani. Certain pockets in Krishna-Godavari
delta, Nandyal area of Kurnool and Salur area of Vijayanagaram are known for
growing these varieties.
About 25000 MT of green banana from Rayalseema
region is getting exported to Middle East and still have great export
potential. Progressive farmers from Rayalseema with moral support from late YSR
could break the dominance of Nanded variety in Delhi market and penetrated to
north markets through Delhi. The advantage of Rayalseema green banana to Nanded
variety is its keeping quality, as it is grown in red soils with scanty rain
fall.
Existing
markets:
AP state has about 21 fruit specific regulated markets, except in very few areas
like Ravulapalem, Banana markets are predominantly private markets. Export from
Kadapa to Delhi is in the hands of handful of politically influential people
who control the trade. Middle East export is being facilitated through
horticulture dept and the interface between marketing and horti is the missing
link, hence significant growth is not happening.
Predominantly farmers sell standing crop @ per
bunch basis to traders, who in turn collect marketable lots and export to
upcountry markets. These traders often pay less to farmers blaming the terminal
market dynamics, farmers have no option than accepting the middleman plea.
Local banana markets at places like Kollipara, Mahanadi,
Salur etc., play major role in aggregation and export to terminal markets. In
these private markets farmers end up paying commission as high as 10%, other
than transportation charges. These markets are very volatile. For example Chekkarakeli
bunch rate fluctuated between Rs.130 -300 range, which is not healthy trend.
Role
of State:
At present agri. marketing department is acting
more like regulatory body, that too more on paper than in action in case of
Fruits& vegetable trade. Much talked about e-NAM, one nation- one price is
not really seen in action.
There is need for marketing department to take
the role of facilitator from existing regulator role and proactively bring in
various players for developing effective supply chain and manage it by using
e-NAM platform. This require huge face shift in department approach and staff
shall be oriented to perform the new roles.
AP being close to east India which is deficit
in banana production, have huge export potential compare to TN, Karnataka, Maharashtra
due to transport and varietal advantage. Karpuram is fast moving and acceptable variety in this market and this
supply chain informally is in place.
State shall identify and map banana clusters and
estimate the potential. After leveraging local markets, marketable surplus
shall be projected and prepare roadmap to reach targeted markets. Similarly potential
terminal markets such as Bhubaneswar, Kolkata, Ranchi, Patna, Jamshedpur etc., shall
be studied to understand their trade dynamics, existing market linkages, their
linked markets.
Identified clusters shall be designated as
state banana markets and facilities such as ripening chambers, carton box
packing, e-auction facilities, quality certification, post-harvest treatment, logistics,
insurance, payment gateway etc., shall be made available. Already experienced players
such as NeML, NCDEX, and ITC shall be roped in to ensure smooth transaction with
fair trade practices.
- Banana being fairly hard crop without much effort organic/naturally grown product shall be made available, targeting star hotels, upcountry supermarkets and supply chains.
- Chekkarakeli being AP specific, more so specific to coastal areas with premium pricing, it shall be wax coated to increase shelf life and target premium markets with exclusive pricing.
- Establishing e – NAM based markets will break existing trade coteries operating in places like Kadapa and ensure farmers get fair trade realisation.
- FPO can be promoted to take up organized farming meeting specific needs of supply chain.
- Models such as annual contracting between FPO and trader/organized vender with committed supplies shall be put into action.
B Guruva Reddy -9866889246
Comments
Dr.R.Kondal Reddy