Field Trip Report Jalgaon Group #1 01/12/2018 Group #1: Jalgaon

Introduction A quiet green revolution based on low-cost and efficient drip irrigation is taking place. The impact is visible in terms of increased and stable income, food security and significantly reduced seasonal migration. 01/12/2018 Group #1: Jalgaon

Salient features of the area Crop pattern Water sources & irrigation technologies Climate conditions Rural poverty 01/12/2018 Group #1: Jalgaon

Trip activities Visit to farmers -User -Non user Dealer Manufacturer Market players 01/12/2018 Group #1: Jalgaon

Value chain for small holders Manufacturer Dealer Farmer Market Gustavo Ajay Vilas & Xaopeng 01/12/2018 Group #1: Jalgaon

Farmers 01/12/2018 Group #1: Jalgaon

Crop selection (before eazy drip) Mono crop agriculture cotton cereals Agriculture intensification cotton cereals winter vegetables Without irrigation With flood irrigation (costs of drip irrigation are high) 01/12/2018 Group #1: Jalgaon

Crop selection (eazy drip) Further intensification cotton cereals winter and summer vegetables Cost of drip system within affordability of small holders 01/12/2018 Group #1: Jalgaon

Ground water distribution Only large farmers Small holders take risk Before eazy drip With eazy drip 01/12/2018 Group #1: Jalgaon

Investment 01/12/2018 Group #1: Jalgaon

Case study: Mr Nayaneswar Gaikwad Before Eazy Drip Land holding: 3 Acre Family size: 5 members Rainfed agriculture (cotton and pigion pea) Used to migrate 4 months every year Dug well Only winter vegetables Cannot afford ISI drip system 01/12/2018 Group #1: Jalgaon

Case study: Mr Nayaneswar Gaikwad With Eazy Drip Grow vegetables throughout the year Within the first year a net income of Rs 12000 No need to migrate 01/12/2018 Group #1: Jalgaon

Case study: Mr Nayaneswar Gaikwad Future concerns Water availability High value crops Watershed management Market linkages 01/12/2018 Group #1: Jalgaon

Input supply chain 01/12/2018 Group #1: Jalgaon

Input supply chain Manufacturer Local availability of manufacturing unit Type of production process Size of operation -Advantages of small prod. Unit -Complete irrigation line with other small manufacturer 01/12/2018 Group #1: Jalgaon

Input supply chain Standards ISI Non ISI (ISI substandard) Eazy drip Government subsidies for ISI systems Standards not appropiate for small scale irrigation Price distortion 01/12/2018 Group #1: Jalgaon

Input supply chain Quality assurance Importance of quality Means of assuring quality -Govt -Small holders -IDE MOU (Memorandum of understanding) with IDE 01/12/2018 Group #1: Jalgaon

Input supply chain IDE’s role in quality assurance Creates new standard Certification Testing & inspection services Branding Discorages substandard production Enforces standard R&D of set of standards based on different applications 01/12/2018 Group #1: Jalgaon

Input supply chain Dealers IDE selects dealer during market creation phase Link dealer to a manufacturer IDE trains dealer Promotion Live demonstration Short campainging Farmer meetings Warranty from manufacturer (MOU) Instruction manual (in local language) Installers are usually attached to the dealer 01/12/2018 Group #1: Jalgaon

Output supply chain 01/12/2018 Group #1: Jalgaon

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 1. Role of commission agent: To deliver latest price information Assure regular payments Reduce risk of farmers Commission not taken - horticulture produce To maintain a good record system 01/12/2018 Group #1: Jalgaon

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 2. Marketing systems For vegetables -Direct marketing -Through commission agent Horticulture -Through commission agent 01/12/2018 Group #1: Jalgaon

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 3. Payment system Vegetables Spot payments Horticultre Within 3 days 01/12/2018 Group #1: Jalgaon

Output supply chain 4. Rate finalisation system Farmer Farmer Delhi Raver Jamner Farmer Central market Regional Market Comm. agent Farmer 01/12/2018 Group #1: Jalgaon

Output supply chain 5. Materials supply system Trader Farmer Comm. agent Transport Trader 01/12/2018 Group #1: Jalgaon

Output supply chain 6. Constraints in present system No focus is given to organic farming Insuficient number of comm. agents 01/12/2018 Group #1: Jalgaon

Challenge in the output markets 01/12/2018 Group #1: Jalgaon

Challenge in the output markets Basic Question: Can present marketing system handle the increased agricultural productivity of smallholders with EasyDrip? 01/12/2018 Group #1: Jalgaon

Challenge in the output markets The present market system is consistent with the marketing capacity of smallholders which will not be automatically changed by drip irrigation. Since drip irrigation will bring more products to market, there is real danger that the market power of smallholders would be further reduced. 01/12/2018 Group #1: Jalgaon

Challenge in the output markets How to help smallholders to realize the potential benefit from drip irrigation? Can we count on government or private business? The new market opportunities and what need to be done for smallholders to catch these opportunities? 01/12/2018 Group #1: Jalgaon

Challenge in the output markets Super market Organic food High value processed goods 01/12/2018 Group #1: Jalgaon

Challenge in the output markets The characteristics of the new market opportunities: increased vertical integration due to higher standards and greater need for control of production and delivery process. These require significant investment not only in infrastructure, but also in capacity to enforce new standards and new processes. There are great externalities in these investments, so there will be a gap between demand and supply. Both government and private business will not provide sufficient investment. 01/12/2018 Group #1: Jalgaon

The Role of NGO: Bridging the Gap What is happening in the field, nursery Agriwatch small processing What else? IDE sub-sector approach, others 01/12/2018 Group #1: Jalgaon

Thank you 01/12/2018 Group #1: Jalgaon