IMPACT OF COLD STORAGE CAPACITY ON COMPOSITION AND

VOLUME OF AGRICULTURAL PRODUCTION IN ASSAM

Department of Humanities and Social sciences Indian Institute of Technology Guwahati,

Guwahati-39

Baban Bayan Roll No. 10224108

Under the Supervision of

Dr. Mrinal K Dutta

Outline of the Presentation

Introduction Objectives Data sources and Methodology Findings Conclusions & Policy Suggestions Bibliography

Introduction Cold storage (CS) is the most important

infrastructure in the post harvest management of agricultural output.

Post harvest losses due to inefficient handling and poor storage structure account for an estimated 10% of food grains and production and 25% of fruits and vegetables (Reshma, 2010).

CS facility coupled with adequate market linkage helps in even distribution of marketable surplus, an win-win outcome.

Contd.. Growing urbanization and rising incomes

are responsible for transforming agriculture (Rao et al. 2007).

Aswani (2005) observes that horticulture has emerged in the last decade as the focal commercial sector among all agricultural activities in the country, while we have been successful in producing, we have not done so well in protecting what is grown.

Access to CS facility increases production of both food crops and non-food crops.

Contd.. Gill and Gill (1982) and Fugli (1999) remarks

that it is advisable for the farmers to avail themselves of CS facilities and earn more profits. There may be considerable scope for improving the seasonal supply and price stability in many developing countries

In Assam, vegetable crops are grown by almost all the farm households in their kitchen garden.

TMIDH was implemented in the state since 2001-02.

Contd..

As the horticulture sector has gained momentum during 2001-02 to 2010-11 and massive CS capacity has also been created during the same period, research priority has been accorded to study linkage between the compositional change in Assam’s agriculture and availability of CS facility.

Objectives of the study

The specific objectives of the study are as follows

To assess the growth of CS capacity in Assam To analyze the comparative changes of area,

production and productivity of major horticultural crops and food crops in the state during the last decade.

To examine the changes in the production portfolio and volume of agricultural production commensurate with increase in CS capacity in Assam

To provide suggestions for development of agriculture sector in the state.

Data Sources and Methodology

Study makes use of both primary and secondary data: a) Source of secondary data and b) Source of primary data.

Primary data collected with the help of questionnaire method for a sample Size of 60 farmer households.

Multistage sampling technique has been followed in selecting the sample farmer households

For analyzing the data tabular analysis has been followed using percentages and mean-variance analysis wherever necessary

Cold Storage and Agriculture

Importance of CS: Temperature is the single most factor in maintaining quality after harvest.

Cold Storage Scenario in India: Total no. of CS is 5381 with a total capacity of 24.45 million MT (as on 31.12.2009). UP and West Bengal account for more than 60% of the CS capacity. Over 90% of the CS capacity are in the private sector.

Sl. No. Commodity Capacity (MT) % of Total No. of CS

1 Potatoes 184,26,316 75.36 2862

2 Multi-Purpose 56,44,659 23.09 1584

3 Fruits and Vegetables 96,427 0.39 160

4 Meat and Fish 1,88,496 0.77 497

5 Milk and Milk Products 68,230 0.28 191

6 Other 26,524 0.11 87

Total 24450652 100 5381

Contd..

CS scenario in Assam: till 2010-11, the total no. of CS is 26 with total capacity of 1,09,540.9 MT. Districts that own CS are Cachar, Kamrup, Sonitpur, Tinsukia, Karimganj, Hailakandi, Golaghat, Jorhat, Nagaon, Goalpara, Barpeta, Chirang and Kokrajhar.

Only 4.11% of the total capacity are created under govt. sector.

Cond..

Year wise growth of CS capacity in Assam

2001-02

2002-03

2003-04

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

17000

26400

0

5100

10000

16191.9

11237

3312

20300

Area and Production of Food Crops vis-à-vis Horticultural Crops

Growth in area under total vegetables is 22.68% (CAGR=2.30%) against the growth in area under food grain crops 1.21% (CAGR=0.13%).

The CAGR in production of total food grain crop is 2.82% during 2001-02 to 2010-11 while during the same period CAGR in production of all Kharif and Rabi vegetables is 6.96% and 4.41% respectively.

2001-02 to 2002-03

2002-03 to 2003-04

2003-04 to 2004-05

2004-05 to 2005-06

2005-06 to 2006-07

2006-07 to 2007-08

2007-08 to 2008-09

2008-09 to 2009-10

2009-10 to 2010-11

-10

-8

-6

-4

-2

0

2

4

6

8

CAGR

Total Foodgrains Total Vegetables

Fig: Compound Annual Growth Rate of Area under total Food Grain and Total Vegetables during 2001-02 to 2010-11

Socio Economic Profile of the Sample Households

Name of District

s

Name of Villages

Average family size

% of Male

Populatn

Literacy of HH head

Educ. Year/HH

head

Work force (%)

Kamrup

Singimari 5.2 61.5 80 7.8 44.2

Roumari 5.3 65.4 90 10.7 32.76

Dadara 5.8 50 100 10.7 32.76

Dolibari 4.9 55.1 60 6.4 38.78

Kamrup Total

5.4 56.5 82.5 8.05 38.89

Barpeta

Zamadarbori

7.2 62.5 40 2.2 45.83

Sengelia 6.1 49.2 60 3.3 24.19

Barpeta Total

6.7 56.4 50 2.75 36.09

Occupational PatternVillage Agricultur

al Activities

Govt. Services

Private Services

Business Non-farm Total

Prim Secy. Prim. Secy. Prim. Secy

Prim Secy

Prim. Secy

Singimari 60.9 13 8.7 0 4.3 0 21.7 4.3 34.8 13

Roumari 54.5 13.6 13.6 0 9.0 0 9 4.5 31.8 4.5

Dadara 45 30 30 0 5 0 20 0 55 0

Dolibari 44.4 27.8 22.2 0 5.6 0 33.3 5.6 61.1 5.6

Kamrup Total

51 20.5 18 2.4 6 0 20.5 3.6 44.6 6.1

Zamadarbori

78.8 0 0 0 27.3 0 0 0 27.3 0

Sengelia 86.7 13.3 0 0 20 0 0 6.7 20 6.7

Barpeta Total

81 4.2 0 0 25 0 0 2.1 25 2.1

Land Holding Pattern

Size classSingima

riRoumari Dolibari Dadara

Kamrup total

Zamadarbori

SengaliaBarpeta

total

Marginal (below 1.0)

3 (12.6)

2 (9.9)

2 (6.2)

7 (50.7)

14 (16.1)

2 (6.6)

4 (20.5)

6 (12.0)

Small (1.0-2.0)

5 (45.9)

6 (57.4)

6 (43.8)

2 (22.4)

19 (44.3)

4 (30.1)

5 (49.1)

9 (37.5)

Semi medium (2.0-4.0)

1 (14.4)

2 (32.7)

1 (19.2)

1 (26.9)

5 (22.5)

4 (63.2)

1 (30.4)

5 (50.6)

Medium (4.0-10.0)

1 (27.0)

0 (0)

1 (30.8))

0 (0)

2 (17.1)

0 (0)

0 (0)

0 (0)

Large (10.0 & above)

0 (0)

0 (0)

0 (0)

0 (0)

0 (0)

0 (0)

0 (0)

0 (0)

Total10 (100)

10 (100)

10 (100)

10 (100)

40 (100)

10 (100)

10 (100)

20 (100)

Table: Village wise Distribution of Sample Households by Different Size of Operational Holdings.

*Figures in brackets indicate percentages of holdings concentrated to various size classes

Cropping Pattern Cropping pattern at sample farms has been

studied in two ways, by examining the frequency distribution of farms growing various crops and by examining percent area allocated to paddy and other important horticultural crops.

Availability of CS facility (or absence of it) does not seem to have any impact on the cropping pattern of the sample farmers.

Main determinant in inter-village differences in crop composition is micro variation in soil type and largely location factor.

VillagePadd

yMustar

dBrinj

alPotat

oTomat

oCabbag

ePumpk

inRadis

hChill

yCoriander

Garlic

Cauliflower

Cukumber

Singimari 50 80 100 90 30 10 80 60 20 60 30 0 20

Roumari 90 70 80 90 20 0 60 50 20 30 10 0 20

Dadara 90 100 50 100 30 10 70 0 10 20 50 0 0

Dolibari 80 90 80 100 0 10 70 0 70 0 10 0 0

Zamadarbori

100 50 90 0 100 80 20 10 50 0 10 10 10

Sengelia 80 0 50 0 50 80 0 0 10 0 0 60 0

Table: Frequency Distribution of Crop Pattern at Sample HHs. (In percentage)

Table: Distribution of Net Sown Area under Different Crops at Sample HHs. (In hectare)

VillagePadd

yMustar

dBrinja

lPotato

Tomato

CabbagePumpki

nRadish

Chilly

Coriander

Garlic

Cauliflower

Cukumber

Singimari2.95

(25.3)2.09

(17.2)2.36

(16.8)0.99 (8.5)

0.29 (2.5)

0.07 (0.6)

1.67 (14.4)

0.68 (5.9)

0.13 (1.25)

2.34 (20.1)

0.15 (1.3)

0 (0)

0.27 (2.3)

Roumari3.88

(29.6)2.61

(19.9)2.88

(21.9)1.18 (8.9)

0.40 (3.1)

0 (0)

2.48 (18.9)

0.71 (5.4)

0.13 (1.0)

0.94 (7.1)

0.03 (0.2)

0 (0)

0.27 (2.0)

Dadara10.11 (58.1)

3.95 (22.7)

0.40 (2.3)

1.66 (9.5)

0.08 (0.5)

0.03 (0.2)

0.88 (5.1)

0 (0)

0.03 (0.1)

0.27 (1.5)

0.37 (2.2)

0 (0)

0 (0)

Dolibari5.22

(58.2)1.51

(16.9)1.31

(14.6)0.95 (10.6)

0 (0)

0.03 (0.3)

1.02 (11.3)

0 (0)

1.30 (14.5)

0 (0)

0.13 (1.5)

0 (0)

0 (0)

Zamadarbori

10.04 (55.6)

2.54 (14.1)

1.20 (6.7)

0 (0)

1.81 (10)

1.34 (7.4)

0.27 (1.5)

0.07 (0.4)

0.47 (2.6)

0 (0)

0.03 (0.1)

0.13 (0.7)

0.20 (1.1)

Sengelia4.95

(47.7)

0 (0)

0.94 (9.0)

0 (0)

1 (9.7)

1.41 (13.5)

0 (0)

0 (0)

0.09 (0.9)

0 (0)

0 (0)

0.74 (7.1)

0 (0)

Figures in Brackets indicate percentage of net cropped area allocated to the respective crops.

CropTotal

Production (in quintal)

Retained for

Consumption (in

quintal)

Marketed Output (in

quintal)Consumption (%)

Paddy 1118.4 772.8 345.6 69.1%Brinjal 3042.5 34.4 3008.1 1.31%Potato 372.9 99 273.9 26.55%

Mustard 126.95 69.05 57.9 54.39%Pumpkin 1366 33.6 1332.4 2.46%

Tomato 256.6 3.9 252.7 1.52%

Radish 423 3.2 419.8 0.76%Garlic 13.7 2.4 11.3 17.52%Paddy 580.1 443.9 136.2 76.52%

Brinjal 1005 0 1005 0

Tomato 2130 2.9 2127.1 0.14%

Cabbage 1952 1 1951 0.05%

Cauliflower 304 0.5 303.5 0.16%

Jute 24.2 0 24.2 0

Mustard 21.6 1.2 20.4 5.56%

Table. 4.7. Marketable Surplus of Some of the Important Crops and percentage of Consumption in the Sample Households (In Quintal)

In Barpeta

In Kamrup

Kamrup

Crop Singimari Roumari Dadara Dolibari Kamrup Total

Paddy 750 750 766.67 750 754.55

Mustard 2425 2485.71 2916.67 2500 2623.53

Brinjal 950 1100 1100 1362.5 1119.35

Potato 712.5 800 790 800 778.38

Pumpkin 675 740 614.28 614.29 655.56

Barpeta

Crop Zamadarbori Sengelia Barpeta Total

Paddy 815 750 796.43

Brinjal 488 460 478.57

Cabbage 250 218.75 234.38

Tomato 320 280 306.67

Cauliflower 300 408 392

Market Price (Rs

per quintal)

Cond..

Kamrup

Name of Crop Average Market price during harvesting

season

Average Market Price during Slack Season

Gap in %

Paddy 696.43 1008.93 30.97

Mustard 2118.52 2974.07 28.77

Potato 681.58 1303.95 47.73

Tomato 662.5 2500 73.5

Brinjal 690.32 1677.42 58.87

Pumpkin 448.21 1066.07 57.96

Barpeta

Paddy 694.44 947.22 26.69

Brinjal 307.14 1771.43 82.66

Tomato 103.33 1893.33 94.54

Cabbage 111.76 1788.24 93.75

Cauliflower 250 1800 86.11

Jute 1316 1833.33 28.18

Table 4.10 Seasonal Average Price variation of some of the Important Marketed Crops in Sample Farmer Households (Rs. per Quintal)

Transportation of ProductHigher transportation costs for farmers in Barpeta makes farmers incur losses and also leads to wastages of vegetables. Village Push Cart

(Hired)Push Cart

(Own)Bicycle Hanging

Baskets Auto

Van/Truck

Singimari 0 40 50 10 0

Roumari 0 40 40 10 10

Dadara 0 30 30 40 0

Dolibari 0 50 20 10 20

Zamadarbori 100 0 0 0 0

Sengelia 100 0 0 0 0

Accessibility of Cold Storage and its Impact on Agricultural production

No visible impact of the CS on farming practices of the sample HHs in Kamrup

No access of CS resulted in leasing out of the same to private party

Contd..

Reasons for not accessing the Cold Store:

Too limited marketable surplus to access a chamber of the CS

Immediate need of revenue after harvest and problem of ‘distress sale’

Lack of information about probable gain after using the CS

Easy marketing even though price is less Lack of unity among farmers to jointly

access the CS

Conclusions

The hypothesis that “access to CS facility leads to changes in composition of agricultural production by shifting to high value horticulture crops and increases volume of production has been rejected.

Transportation and market access is more crucial factor than the accessibility of cold storage facility in a state like Assam

Policy Suggestions Formation of grower’s cooperative society. Exploring more vegetable growing zone in

Assam and induce farmers to cultivate providing necessary assistance.

Improvement of road communication and transport system.

The selection of location to establish CS has to be based on market linkage scenario and extent of marketable surplus.

Emphasis should be more on ‘cold chain’ concept in the context of Assam instead of CS.

Bibliography

Aswani, p. (2005), Commodity Portfolio Management of Cold Storage units in Hyderabad (AP). An unpublished Ph. D thesis submitted to University of Agricultural Sciences, Dharwad

Borah, R. and R. Savapandit (2008), ‘Economics of Vegetable Crops Cultivation in Assam: A Study in Nagaon and Jorhat Districts’ in Deshpande R. S. et al. (eds.), Glimpses of Indian Agriculture: Macro and Micro Aspects (Vol.2), Academic Foundation, New Delhi

Chand, R. (1999), Agricultural Diversification in India, Mittal Publication, New Delhi

De, U. K. (2003), Economics of Crop Diversification, Akansha Publishing House, New Delhi

Contd.

Dorjee, K. S. Broca and Prabhu Pimgali (2007), ‘Diversification in South Asian Agriculture: Trends and Constraints’ in Joshi P. K. et al. (eds.), Agricultural Diversification and Smallholders in South Asia, Academic Foundation, New Delhi

Gill, D. S. and Gill, G. S. (1982), ‘An Economic Analysis of Potato Marketing in Punjab.’ Agricultural Marketing 24 (2); pp. 25-28

Government of Assam (2010-11), Economic Survey, Directorate of Economics and Statistics

Government of Assam (2010), Statistical Handbook, 2010, Directorate of Economics and Statistics

Contd..Government of India (2010), Status of Cold Storage in

India, accessed from www.indg.in/agriculture/crop.../status_of_cold_storages_in_india.pdf on 06.03.2012

Jairath, M. S. (2010), Agricultural Marketing Infrastructural Facilities in India. pp. 5, accessed from www.cosamb.org/downloads/MISINDIA-Cosamb(F).doc on 06.03.2012

Fugli, K. O. (1999), ‘Economics of Potato Storage: Case Studies’, paper presented at the Symposium on Potato Storage, Processing and Marketing’, Global Conference on Potato, New Delhi, India, December 7-9

Rao, V. M. and K. C. Hiremath (2010), ‘Agricultural Policy Reviews: A Synthesis’ in Asian Development Bank (ADB), Agriculture, Food Security and Rural Development, Oxford University Press, New Delhi pp.8-9

Contd..Ray, D. (1998), Development Economics, Oxford

University Press, New Delhi, Fifth Impression Reshma, A. (2010), ‘Agriculture Marketing- From

Livelihoods to Enterprise’, State of India’s Livelihood Report 2010, Sage Publications India Pvt. Ltd., New Delhi

Sengupta, K. (2010), Determinants of Marketed Surplus in a Backward Economy, Concept Publishing Company Pvt. Ltd., New Delhi

Joshi, P. K. (2010), ‘Crop Diversification in India: Nature, Pattern and Drivers’ in Asian Development Bank (ADB), Agriculture, Food Security and Rural Development, Oxford University Press, New Delhi. pp.211

Field Visit

Piture: Questionnaire Survey in Village Dolibari (Left) and in Dadara (Right) in Sample location at Kamrup.

Thank You