Field Trip Report Jalgaon Group 1 12032021 Group

Field Trip Report Jalgaon Group #1 12/03/2021 Group #1: Jalgaon 1

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. 12/03/2021 Group #1: Jalgaon 2

Salient features of the area l Crop pattern l Water sources & irrigation technologies l Climate conditions l Rural poverty 12/03/2021 Group #1: Jalgaon 3

Trip activities l Visit to farmers -User -Non user l Dealer l Manufacturer l Market players 12/03/2021 Group #1: Jalgaon 4

Value chain for small holders Manufacturer Gustavo 12/03/2021 Dealer Farmer Ajay Group #1: Jalgaon Market Vilas & Xaopeng 5

Farmers 12/03/2021 Group #1: Jalgaon 6

Crop selection (before eazy drip) Mono crop agriculture cotton cereals l Agriculture intensification cotton cereals winter vegetables l 12/03/2021 Group #1: Jalgaon Without irrigation With flood irrigation (costs of drip irrigation are high) 7

Crop selection (eazy drip) l Further intensification Cost of drip system cotton within affordability of small holders cereals winter and summer vegetables 12/03/2021 Group #1: Jalgaon 8

Ground water distribution Only large farmers l Small holders take risk l Before eazy drip With eazy drip 12/03/2021 Group #1: Jalgaon 9

Investment 12/03/2021 Group #1: Jalgaon 10

Case study: Mr Nayaneswar Gaikwad Before Eazy Drip l l l Land holding: 3 Acre Family size: 5 members Rainfed agriculture (cotton and pigion pea) Used to migrate 4 months every year Dug well Cannot afford ISI drip Only winter vegetables system 12/03/2021 Group #1: Jalgaon 11

Case study: Mr Nayaneswar Gaikwad With Eazy Drip Grow vegetables throughout the year l Within the first year a net income of Rs 12000 l No need to migrate l 12/03/2021 Group #1: Jalgaon 12

Case study: Mr Nayaneswar Gaikwad Future concerns Water availability l High value crops l Watershed management Market linkages 12/03/2021 Group #1: Jalgaon 13

Input supply chain 12/03/2021 Group #1: Jalgaon 14

Input supply chain Manufacturer Local availability of manufacturing unit l Type of production process l Size of operation -Advantages of small prod. Unit -Complete irrigation line with other small manufacturer l 12/03/2021 Group #1: Jalgaon 15

Input supply chain Standards ISI l Non ISI (ISI substandard) l Eazy drip l Government subsidies for ISI systems Standards not appropiate for small scale irrigation l Price distortion l 12/03/2021 Group #1: Jalgaon 16

Input supply chain Quality assurance Importance of quality l Means of assuring quality -Govt -Small holders -IDE l MOU (Memorandum of understanding) with IDE l 12/03/2021 Group #1: Jalgaon 17

Input supply chain IDE’s role in quality assurance Creates new standard Testing & inspection services Certification R&D of set of standards based on different applications Enforces standard 12/03/2021 Group #1: Jalgaon Branding Discorages substandard production 18

Input supply chain Dealers l l l l 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 12/03/2021 Group #1: Jalgaon 19

Output supply chain 12/03/2021 Group #1: Jalgaon 20

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 1. Role of commission agent: l To deliver latest price information l Assure regular payments l Reduce risk of farmers l Commission not taken - horticulture produce l To maintain a good record system 12/03/2021 Group #1: Jalgaon 21

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 2. Marketing systems A. For vegetables -Direct marketing -Through commission agent B. Horticulture -Through commission agent 12/03/2021 Group #1: Jalgaon 22

Output supply chain Marketing for horticulture and vegetable produced in Jamner area of district Jalgaon 3. Payment system A. Vegetables Spot payments B. Horticultre Within 3 days 12/03/2021 Group #1: Jalgaon 23

Output supply chain 4. Rate finalisation system 12/03/2021 Delhi Raver Jamner Farmer Central market Regional Market Comm. agent Farmer Group #1: Jalgaon 24

Output supply chain 5. Materials supply system Farmer 12/03/2021 Comm. agent Transport Group #1: Jalgaon Trader 25

Output supply chain 6. Constraints in present system l No focus is given to organic farming l Insuficient number of comm. agents 12/03/2021 Group #1: Jalgaon 26

Challenge in the output markets 12/03/2021 Group #1: Jalgaon 27

Challenge in the output markets Basic Question: Can present marketing system handle the increased agricultural productivity of smallholders with Easy. Drip? 12/03/2021 Group #1: Jalgaon 28

Challenge in the output markets l l 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. 12/03/2021 Group #1: Jalgaon 29

Challenge in the output markets l l 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? 12/03/2021 Group #1: Jalgaon 30

Challenge in the output markets Super market l Organic food l High value processed goods l 12/03/2021 Group #1: Jalgaon 31

Challenge in the output markets l l l 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 supply. Both government and private business will not provide sufficient investment. 12/03/2021 Group #1: Jalgaon 32

The Role of NGO: Bridging the Gap What is happening in the field, nursery Agriwatch small processing l What else? IDE sub-sector approach, others l 12/03/2021 Group #1: Jalgaon 33

Thank you 12/03/2021 Group #1: Jalgaon 34