High-value crops and marketing…. studies the case of high-value agriculture in the state of Uttarakhand in the context of rapid changes in marketing at the national and international level. Uttarakhand is characterized by a significant number of opportunities in high-value agriculture. They include the presence of a high number of endemic crops, diversity in agro-climatic conditions, possibilities to produce for 'off-season' markets, organic production practices, the relative high education of producers, a strong agricultural research capacity, an active civil society, a competitive production environment and a location relatively close to terminal consumer markets, at least for part of the state. On the other hand, agriculture in Uttarakhand also faces significant challenges that limit the competitiveness of its farmers with farmers in other Indian states and outside India. These include the high number of small scattered farms creating problems of aggregation and transport costs, migration and land conversion, increasing water and climatic change problems, environmental vulnerability, wildlife attacks, and a problematic regulatory environment. This book looks at these problems in a holistic manner and suggest ways on how Uttarakhand can prepare itself better to take advantage of the changing agricultural marketing environment.

Rapid changes are being made in the processing sector and a retail revolution is sweeping through India. Uttarakhand needs to position itself to utilize these developments. Current high-value chains in the State are not adapted towards these new opportunities. In order to study the different issues that inhibit growth in high-value agriculture this study looks at five value-chains: off-seasonal vegetables (tomato), temperate fruits (apple), vegetables (potato), organic crops and herbal plants.

The study suggests that in order to promote inclusive high-value agricultural growth, the focus has to be on improving the competitive environment, on providing information and relevant research and on upgrading infrastructure.

List of Tables, Figures and Boxes

Foreword

Abbreviations and Acronyms

1. Introduction

2. Understanding the Setting and Context

2.1. Introduction

2.2. Physical Features and Geography

2.3. Some Demographic, Social and Economic Indicators

3. Where are Agricultural Markets Headed?

3.1. Changes in Food Demand

3.2. Modern Food Retail

3.3. Agricultural Export Markets

4. The Current State of High-value Agriculture

4.1. Overview Agriculture

4.2. Opportunities for High-value Crop Development

4.3. Challenges for High-value Crop Development

5. High-value Crop Marketing

5.1. Introduction

5.2. The APMC Act

5.3. Results from a Wholesale Market Survey

5.3.1. Data and Methodology

5.3.2. Descriptive Statistics

5.3.3. Problems with the Broker System

5.3.3.1. Ineffective Regulations

5.3.3.2. The Confusing Role of Wholesalers versus Brokers

5.3.3.3. Incomplete Information Transmission

5.3.3.4. Limited Service Delivery

5.3.3.5. Lack of Competition with the Broker System

5.3.4. Reasons for Resilience of the Broker System

5.3.4.1. Low Transaction Costs

5.3.4.2. Access to Insurance and Credit

5.3.4.3. Access to Input Advances

5.3.5. Broker Economics

5.3.6. Conclusions and Implications

6. High-value Crop Chain Analysis

6.1. Introduction

6.2. An Overview of High-value Chains

6.2.1. Horticulture

6.2.2. Organic Crops

6.2.3. Medicinal, Aromatic and Culinary Herbs

6.2.4. Seeds

6.2.5. Floriculture

6.3. Simulations on the Pay-offs for Interventions

7. The Way Forward

References

Annex: Insights in High-value Commodity Chains

Annex I—Fruits: The Case of Apples

I.1. Methodology

I.2. Production

I.2.1. The Indian Situation

I.2.2. The Situation in Uttarakhand

I.3. Marketing Channels

I.4. Wholesale, Retail and Demand

I.5. Conclusions

Annex II—Vegetables: The Case of Potatoes

II.1. Methodology

II.2. Production

II.2.1. The Indian Situation

II.2.2. The Situation in Uttarakhand

II.3. Marketing Channels

II.4. Wholesale, Retail and Demand

II.5. Conclusions

Annex III—Off-season Vegetables: The Case of Tomatoes

III.1. Methodology

III.2. Production

III.2.1. The Indian Situation

III.2.2. The Situation in Uttarakhand

III.3. Marketing Channels

III.4. Wholesale, Retail and Demand

III.5. Conclusions

Annex IV—Organic Farming

IV.1. Introduction

IV.2. Global Trends in the Organic Food Sector

IV.3. The Uttarakhand Context

IV.4. Case Studies

IV.4.1. Sunstar Overseas Ltd.

IV.4.2. UOCB

IV.4.3. INHERE

IV.5. Common Threads and Lessons from the Case Studies

IV.6. Conclusions

Annex V—Medicinal, Aromatic and Culinary Herbs

V.1. Introduction

V.2. Global and National Demand in Herbal Industry

V.3. Institutional Channels of Production and Marketing

V.4. The Medicinal and Aromatic Plants Supply Chain

V.5. Sustainability of Medicinal Plants Promotion: Cultivation versus Collection

V.6. Paving the Path for Sustainable Herbs Cultivation

V.7. Case Studies

V.7.1. The Case of Sanjeevani Ayurvedshala

V.7.2. Flex Foods Ltd.

V.8. Conclusions