Quantity And Quality Mapping Of Chillies In Khammam And Warangal districts of Andhra Pradesh By
Dharmendra Kumar Pathak B.Sc (Ag)
PROJECT REPORT SUBMITTED TO SCHOOL OF AGRIBUSINESS MANAGEMENT, ACHARYA N. G. RANGA AGRICULTURE UNIVERSITY IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF
MASTER OF AGRI BUSINESS MANAGEMENT
SCHOOL OF AGRIBUSINESS MANAGEMENT College of Agriculture
Acharya N. G. Ranga Agriculture University, Rajendranagar, Hyderabad-30.
AUGUST 2004
1
CERTIFICATE This is to certify that the project report entitled “Quality and Quantity Mapping of Chillies in Khammam and Warangal” summitted by Mr. Dharmendra Pathak, is an original research work carried out by student of School of Agribusiness Management (SABM), Hyderabad, during his internship Programme at under my guidance during 1st June to 15th July 2004.
(Chairman / Internal Guide)
Date: Place: Hyderabad
Member
2
Acknowledgement “When a person enters upon an understanding he knows he needs the help of others, success is not to be attained alone” I owe my heartiest devotion to almighty for his blessings bestowed on me for success of this study. Mere words can never suffice to express the sense of gratitude to those whose assistance was indispensable for the completion of the present study. With great respect, immense pleasure and esteemed reverence, I express my deepest sense of gratitude to Mr. .Y.C.Deveshwar, managing director, ITC limited for giving me this opportunity to work on this project. I humbly express my loyal and venerable thanks to Mr. Anjan Dasgupta ,Asst. manager, ITC ILTD and my external project guide for providing the necessary facilities and guidance for carrying out the research work effectively and smoothly. As the project guide of my study his close monitoring and encouragement made the work complete in time with perfection. I owe my thanks to Mrs. .Seema, ASSOC. Prof & Head, SABM, Rajendranagar for providing me the opportunity and supporting me to prove my talent and gain experience through my project work. Words and deeds are insufficient to repay the unending love, constant inspiration, co -operation of my loving brother, sister and dear friends and others whose names are not to be forgotten. I bow down my head before my adorable “father and mother “for their blissful blessings, unfathomable love and supreme sacrifice in evolution of this tiny personality. Last but not the least I want to thank all the personnel of the state agriculture department and farmers who responded to my queries and for the incredible help and support during my study
DHARMENDRA PATHAK
3
DECLARATION
I, Mr. Dharmendra Pathak hereby declare that the project report entitled “Quality and Quantity Mapping of Chillies in Khammam and Warangal districts of Andhra Pradesh”, submitted to the SCHOOL OF AGRI BUSINESS MANAGEMENT, A.N.G.R.A.U., HYDERABAD, in partial fulfillment of the requirements for the degree of MASTERS IN AGRI BUSINESS MANAGEMNET (MABM) is the result of original work done by me.
Date:
(Dharmendra Kumar Pathak)
Place
4
INDEX S.no 1 2 3
contents Executive Summary Introduction Methodology of the project
Page .no 6 10 19
4
Results and discussions
22
a
Mapping Chilles growing areas in Khammam and Warangal
24
b
32
c
Study of Area , Production, Price trends and Farmers Realization Price in Khammam and Warangal cost of cultivation of chillies
d
value chain of chillies
40
e
Suggesting Procurement centres
43
f
Procurement strategy
48
5
Recommendations and conclusions Annexure Questionnaire for farmers Area under chillies in different districts Area and Production trends in Khammam district Area and Production trends in Warangal district Cost of cultivation of chillies Hybrid chillies Cost of cultivation of alternate crops Cotton , red gram, black gram Summary of procurement centres
53
1 2 3 5 7 a 8
9
37
56 62 63 65
67
69 72
5
Executive Summary
6
Executive summary The project titled “Quality and Quantity Mapping of chillies in Khammam and Warangal districts of Andhra Pradesh” was carried out for ITC- ILTD.
CHILLIES or Cayenne, was though, at one time, Americas most important contribution to the world of spices, chilli is today one of India's major export attractions. An annual plant, chilli comes in a wide variety of shapes, sizes, colors and in different degrees of pungency. It is thus variously called capsicum, paprika, pimento, sweet pepper, red pepper, cayenne pepper and bird's eye chilli depending on the type of chilli and the manner in which it is prepared and used. An indispensable culinary spice in several parts of the world, Indian chilli is grown largely in Andhra Pradesh, Maharashtra, Karnataka, Madhya Pradesh, Tamilnadu and in a number of other states as a round-the-year crop. The medium pungent 'Sannam' and the mildly pungent 'Mundu' chillies are internationally recognized as the finest in quality.
Chilli is one of the spice crops in India. Indian chilli is exported to USA, Sri Lanka, Bangladesh, the Middle East and the Far East. Products are available as powder and oleoresins. India also offers high capsaicin content chilli with or without stalks and with clipped stalks, and fresh and dried capsicum. Due to its hot nature it is adored and consumed by the gentry who love "Spicy Indian Food “ ¾ The project was taken up with the following objectives a) To map chillies growing areas in Khammam and Warangal b) To know the production, yield patterns, price trends and farmers realization price c) To study the cost of cultivation of chillies and know the cost benefit ratio of two alternate crops. d) To study the value chain of chillies. e) To suggest procurement strategy.. These objectives proved the company with distinct competitive advantage in terms of Quality, quantity, market prices, source and time of procurement along with the procurement strategy in the districts of Khammam and Warangal.
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The project data was collected from sources like Directorate of Agricultural Statistics, Khairatabad, office of Joint Director of Agriculture, Offices of Agricultural Officers (A.O), Research Stations and farmers in the areas of Khammam and Warangal. .A survey was carried out at the farmer’s level in Khammam and Warangal districts. The aim of this study was to find out the cost of cultivation of chillies along with two alternate crops and their cost benefit ratios at the farmer’s level. The project also aimed at studying the value chain of chillies.
The study revealed that the cost of cultivation varied based on factors like soil type (red/black), varieties grown (hybrid /local), irrigation facilities and the land holding of the farmer. The cost of cultivation of chillies has inverse relation with land holding. The economies of scale seem to exist. This was due to the farmers application of fertilizers and chemicals decreased with increase in land holding and also the cattle pair engaged for the day could work more then 2-3 acres of land at the same price given for an acre. Cost of hybrid chillies was about
30305/- rupees per acre
Cost of local chillies was about
24380/- rupees per acre
The value chain of hybrid chillies begins after the chillies are being harvested. At this stage the cost of cultivation is around Rs 26100 or Rs 1373.684 per quintal.
The chillies after they are picked, they are dried on cement floor and the moisture content is reduced to 15%. An average bag of chillies after harvesting weighs 60 kg .This when dried for 10-15 days, the weight of the bag of chillies comes to 35 kg. Thus there’s loss in moisture and weight. Cost per kg of chillies after drying becomes Rs 23.603/kg.
The infected /spotted white coloured or discoloured chillies are separated from the whole lot dried. This graded chilli fetches good price in the market. Due to grading there loss of about 12.5% .The poor quality of chillies separated called “tallu” is sold at a very low price. Cost per kg of chillies after grading is
Rs 27.26/kg.The filling of chillies in gunny bags, transportation,
loading and unloading and weighing operations result in the total cost of 28.24 per kg
The farmer pays commission of Rs1.35/Kg and finally it when added the total cost incurred by the farmer on the one kg of chillies is worked out to Rs 29.63/ kg. 8
The various marketing channels existing are
Farmers-----wholesalers------retailers------customers Farmers -----big traders-----firms (process chillies) ------customers (chillies power) Farmers -----big traders-----firms (oleoresin extraction) Farmers-----companies
The total area and production of chillies in Khammam is 23634 ha area and 87222 tonnes of production and in Warangal its 24525 ha and 61312.0 tons. The average per acre yield in the two districts is worked out to 16qtls of local variety and 19qtls for hybrids. The company by entering into procurement into these areas can obtain regular supplies of chillies as there rapid fluctuations in chillies cultivating area every year. The percentage of production from the two districts is around 23 % of A.P “s production. The application of chemicals in these areas is very less compared to that of Guntur. Thus the company can get better quality of chillies at reasonable prices.
The company before entering into the procurement in these areas must have seasonal data of the area and production estimation, so that they can schedule the amount of chillies to be procured each day and avoid risk of purchasing at high prices
The company should enter into direct procurement and direct farm procurement in areas of Khammam and Warangal.The Company should go for contract farming in areas of Bhadrachalam of Khammam district as it contributes to about 29%area and 30% of the total production of the district. The area is highly fertile, as it is on the banks of the river Godavari and size of land holdings of the farmers is large thus providing ideal conditions for contract farming.
The company can educate farmers on the terms of quality, variety by direct procurement.
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INTRODUCTION
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Chapter I
Introduction Chillies an overview The genus Capsicum stems from South America. Unlike most other tropical spices, chillies are easy to cultivate; therefore, their cultivation and usage has spread all over the world, especially to regions with tropical climate. The main producer today is India, albeit mostly for domestic use.
Chillies are the most common spice cultivated in India. It is grown nearly in all parts of the country, hills and plains. The important chilli growing states are Andhra Pradesh, Orissa, Maharashtra, West Bengal, Karnataka, Rajasthan and Tamil Nadu. Andhra Pradesh alone commands 46% of the chilli production in India. As per the latest statistics, India produced 8, 00,100 tonnes of dry chilli from an area of 9, 30,000 hectare. No country in the world has so much area and production of chilli as in India.
India is one of the few countries rich in many varieties with different quality factors. Chilli is an essential ingredient of Indian curry. Chilli characterizes the curry by its tempting colour and titillating pungency. In curry, chilli is used as a paste, powder, broken split or whole form. There are Indian pickles, especially with tender mango in which chilli powder is added lavishly to form a thick paste with biting sensation at the end of curing. In all Indian homes, the poor and the rich use chilli alike.
While consumption of chilli is the highest in India, maximum export is also from this country. India made the record export of 51,900 tonnes of dry chilli in 1996-97. Oleoresin of chilli with low, medium or high pungency is also exported in large quantities. Chilli powder is another important item of export. Indian chilli and its products are brought by a number of countries. Important among them are Sri Lanka, Bangladesh, South Korea and USA for dry chilli and USA, Germany, Japan, UK and France for oleoresin. India supplies chilli in whole, crushed, powder or oleoresin forms in consistent colour and required pungency.
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Utilization and Demand Chilli has two important commercial qualities. If some varieties are famous for red colour because of the pigment casanthin, others are known for biting pungency attributed by capsaicin. India is the only country rich in many varieties with different quality factors. While consumption of chilli is the highest in India, maximum export is also from this country. Chilli continued to be the major item of export in the world in terms of quantity.
Forms There are wide ranges of products based on whole or ground chilli entering world trade. The terminology for these products can be confusing, and definitions can vary between and even within markets. Chillies are used in whole dried or chopped form or as a ground powder. Chilli paste and chilli sauce are also frequently sold. Oil and oleoresin is the most important value added products of chillies.The key parameters for any dried chilli product are pungency level (measured in % capsaicin or Scoville Units) and color (measured in ASTA color units). In addition, size and appearance may be important. Producers should be sure that they understand exactly what the market requires.
Production and Supply In India chillies are grown in almost all States of the country. The important States growing chilli in terms of production are Andhra Pradesh (49%), Karnataka (15%) Orissa (8%), Maharashtra (6%), West Bengal (5%), Rajasthan (4%) and Tamil Nadu (3%). The total production in the country is around 1018000 tonnes (dry) from 915200 hectare in the country (1999-2000). The average productivity in the country is around 1112 Kg/ha Andhra Pradesh has the maximum productivity of 1948 Kg/ha followed by Punjab (1607 Kg/ha). Productivity is the lowest in Himachal Pradesh (270 Kg/ha).
Grades/Varieties 12
Chillies come in a bewildering range of varieties, such as Ruby King, California Wonder (both grown in comparatively milder climates), the Tabasco variety, Mexican chillies, Spanish and Hungarian paprika, Japanese chillies, African chillies, and Indian chillies which are sub-divided into many further varieties, such as Sattur, Byadagi, Sankeshwar, Guntur, Jwala, Rajpur, Mundu, etc., the names based largely on the areas where they are locally cultivated.
Quality requirements In chillies which are used in food preparations, quality is of much importance, and is based on the following characteristics: a good pungency level, a bright red colour, a good flavour, a mediumsized fruit with a moderately thin pericarp, a smooth, glossy surface, few seeds in the fruit and a firm stalk.
Medium-sized fruits are preferred to long pods, owing to the fact that in storage they remain intact better than longer pods, which tend to break at the distal ends. A fairly thin pericarp is necessary, as its moisture is less than that of a thick pericarp, and drying is more easily accomplished. On drying, fruits with thick pericarp show a wrinkled surface and dull appearance. Chillies with a bright red colour command higher prices than those which are dull red or even orange or, yellow in colour, and deep red fruits tend to retain their colour in storage longer than those which are of lighter shade.
In the case of pungent chillies, which are to be used for the preparation of capsicum oleoresin, the appearance is of much less importance, but high capsaicin content is essential.
When buying dried chillies select those that are uniform in colour and that have deep or brilliant colour. Make sure they are not faded, dusty or dirty and that there are no white spots or other markings that indicate improper drying, disease, or overlong storage. Select unbroken chillies, otherwise the essential oils that are contained in the flesh and that give the chillies their unique flavour will have evaporated. Good quality chillies will have a degree of flexibility indicating freshness. They should also have a good aroma, like fresh spices. Store dried chillies and chilli powder in an airtight container in a cool, dry, dark place. Although it is possible to store them for
13
extended periods of time, it is better to use them within six months. If you do keep them longer check through them occasionally and discard any that have spoiled.
Internal Marketing The major marketing centres for chillies are located in Maharashtra, Andhra Pradesh, Karnataka and Tamil Nadu:
State Centres Andhra Pradesh Guntur, Warangal, Khammam, Hyderabad, Cuddapah, Vijayawada, Rajamundry, Nellore.
Maharashtra Nasik, Ahmed Nagar, Sholapur, Aurangabad, Nanded, Amaravathi, Lasalgaon
Karnataka Gharwad, Mysore, Hassan, Bangalore, Bellary, Ranibennur, Hubli, Byadgi
Tamil Nadu Pollachi, Ramanad, Madurai, Trichi, Thani, Dindigul, Virudunagar, Sattur
International Marketing India has immense potentiality to grow and export different types of chillies required by various markets. The estimated current world import of chilli is 1-lakh tonnes, 22.22% of total world import of spices. In eighties, around 1% of the total production only exported. This is mainly because of the high domestic consumption. In recent years around 2.75 % to 7.50 % of total production exported against the proposed target for chilli is 15 million tonnes. During the year 1999-2000, 64776 tonnes of chilli worth Rs.250.66 crores was exported. Though there was a growth in exports in terms of value by 8%, the quantity exported declined by 4.8% from the all time record export of 68019 tonnes during the crop year 1998-99. Oleoresin of chilli with low, 14
medium or high pungency is also exported in large quantities. Chilli powder is another important item of export. Other chilli products include: chilli seed, chilli fresh, capsicum genus and other pimenta. Indian chilli and its products are bought by a number of countries. Important among them are: Dry chilli - Sri Lanka, Bangladesh, South Korea, Chile Oleoresin - USA and USA, Germany, Japan, UK and France. India faces competition mainly from China and Pakistan who offer chillies at low prices in international markets.
Imports Imports of chillies can only be estimated as import statistics combine them with paprika and pimento. Imports as whole chillies have fallen in the world market as exports of chilli powder and oleoresin have grown. There are a number of factories in India, Pakistan and China set up in collaboration with multinational spice companies that are now able to produce chilli powder to meet EC and ASTA hygiene standards. Among the European Union countries, UK is by far the most important importer of chillies, reflecting its colonial heritage and large ethnic community, with the Netherlands the second largest importer.
Prices Prices of both whole chillies and chilli powder vary greatly depending on cleanliness, pungency, colour, and appearance of the product. Generally 0.7% capsaicin is the minimum level for the extraction market. Products with more than 1.0% fetch a premium. Prices for high pungency chillies (i.e. East African Bird eyes) are typically in the range of US$ 2000 to US$ 3000/tonne. Low to medium pungency Indian chillies (0.3 to 0.5% capsaicin) fetch between US$ 1,200 and US$ 1400 per tonnes.
Demand and Opportunities The world demand is expected to go up to 1, 13,000 by 2005 AD, consequently it is expected that there will be a great scope for export of chillies. Demand is growing for value added products using chillies such as chilli paste, curry powders and other sauces for the convenience food industry. Some of these are produced at origin but stringent hygiene and quality control level must be maintained. In the extraction industry, there is always demand for high capsaicin content (over1%) chillies, as this offers extractors a direct saving on unit costs of extraction. 15
The best opportunities for new suppliers lie in production of selected varieties of high capsaicin chillies for the extraction market, and in supplying niche retail markets for selected high colour high pungency whole chillies.
Company profile ITC is one of India's foremost private sector companies with a market capitalization of around US $ 6 billion and a turnover of US $ 2.6 billion. Rated among the World's Leading Companies, ITC ranks fourth in net profit among India's private sector corporations. ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Branded Apparel, Packaged Foods & Confectionery, Greeting Cards and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Branded Apparel, Greeting Cards and Packaged Foods & Confectionery.
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including eenabled services and business process outsourcing.
ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to be rated for Corporate Governance by ICRA, an associate of Moody's Investors Service,
16
which accorded it the second highest rating, signifying "a high level of assurance on the quality of corporate governance."
ITC employs over 15,000 people at more than 60 locations across India. Ranked among the top five sustained value creators in India by 'Business Today-Stern Stewart' in their studies conducted between 2000 and 2003, ITC continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward its 1, 46, 511 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value for the nation for the Shareholder."
The project in ITC-ILTD was undertaken, to study the area and production of chillies in Telengana districts of Khammam and Warangal and to study the cost of cultivation of chillies and its value chain. The project was taken up with the following objectives
OBJECTIVES OF STUDY ¾ To map chillies growing areas in Khammam and Warangal ¾ To know the production, yield patterns, and price trends ¾ To study the cost of cultivation of chillies and know the cost benefit ratio of two alternate crops. ¾ To study the value chain of chillies ¾ To suggest procurement strategy.
Limitations The project had following limitations like Ö The survey has the limitation of limited area .since the area surveyed were the top ten mandals in these two districts. Ö The data from the farmers was taken based purely on their recalled memory. Ö The sample size was limited, as only 30 farmers were interviewed from such a big population of the mandal. Ö The project had an element of time limitation. Ö The statistical tools were elementary in nature. 17
Scope of study
The project provided an in-depth knowledge to the organization and me about the chillies. The company through project was able to map the area under the chillies, varieties which are grown in those specific areas, the cost of cultivation, market prices and the quantity of chillies produced in these two districts. In addition the company was able to make in depth analysis of the value chain of chillies and on setting up of the procurement centres.
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METHODOLOGY
19
CHAPTER II
METHODODLOGY Sampling procedure The data of area and production of various districts was collected from various secondary sources. The districts Khammam and Warangal ware identified as top districts in chilli area nad production after Guntur. These two districts were taken up for study. The top ten mandals in the districts based on average of area and production of last five years were taken up for study. In each of these two districts top five villages were further selected for study.
Research design o using exploratory and statistical tools
Data collection
o Secondary data from various sources like ¾ DAATTC of respective districts ¾ Office of Joint Director of Agriculture ¾ Agriculture Officer (A.O) ,and Mandal Statistical Officer ¾ And literature from Directorate of Economics and Statistics, Hyd
o Primary sources of data from farmers on farm and off farm through preset ¾ Questionnaire.
Sampling methods ¾ Simple random sampling was followed for selection of farmers
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¾ Farmers from these villages were interviewed on various parameters like the cost of cultivation of chilies and alternate crops, farmer’s realization price and various aspects of marketing like the cost involved at each step of marketing of the chillies.
Sampling plan ¾ Sampling unit ----- farmers ¾ Sample size ------30 farmers per mandal
Duration of study ¾
Two months
Research boundaries ¾
The location of the project was operational in top ten mandals of Khammam and Warangal
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Results & Discussion.
22
Chapter III
Results and discussion of the Project Introduction In Andhra Pradesh, the extent of area under the crop in 1955-56 was1.76lakh hectares with 1.4 percent share in gross cropped area and of which only 16.9 percent was under irrigation with 9 percent share in gross irrigated area. As the area under rainfed is high, there are fluctuations in the area under the crop due to vagaries of the monsoon. It reached its peak during 1999-2000 with 2.68 lakh hectares with 2.1 percent share in gross cropped area, out of this area 64.5 percent under irrigation with 3 percent share in gross irrigated area. The percentage area under irrigation was raised from 16.9 percent to more then 40percent in seventies and above 65 percent in nineties .Due to this the state average yield of the crop has raised from 565 Kgs per hectare in 1955 to 2631 Kgs per hectare in 2001-02. The crop is popular in Guntur district with 19.8 percent share in chilies area in 1955-56 and raised its share to 23 percent 2001-02 .The Telangana districts Warangal (3.1percent share) and Khammam (1.7 percent share) with 4.8 percent share in area in1955-56 has raised to 21 percent in 2001-02.
Production Out of the total production, Guntur district with 22.3 in 1955-56 percent share stood first among the districts and the same trend is continued in2001-02 with 34.7 percent production. The share of the Warangal and Khammam in production of chillies in 1955-56 is 1.5 percent and it rose to 24.3 percent in 2001-02.
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Mapping of Chillies Growing Areas in Khammam and Warangal Khammam CLIMATE. The climate in the district is generally dry and is very hot in May with mercury rising upto 52 C. Normally the temperature varies from 41 C in summer to 16 C in winter. RAINFALL The district will have around 1000 mm normal rainfall mostly through south west monsoon which is fairly reliable. SOIL The predominant soils in the district are chalka, dubba, and black soils. 43% area of the is district chalka soil and in 29% black soil and in the rest 28% is dubba soil. Nearly 48% of the total geographical area of the district is covered by forest. The areas on the banks of the river Godavari are considered as the most fertile lands in the district.
Cropping pattern Agriculture is the back bone of the district’s economy, paddy is the main crop grown in the district followed by Jowar, Chillies, Cotton, Tobacco, Sugar, Sunflower etc., are the important of commercial crops beside this Mango, Coconut, Cashews, Banana etc., are important Horticulture Crops grown in the district. IRRIGATION The geographical area of the district is 15.81 lakh hectares. Out of 4.71 lakh hectares gross cropped area, 4.46 lakh hectares is the net cropped area whereas gross irrigated area is 1.74 lakhs hectares and net irrigated area is 1.64 lakh hectares. Irrigation is plays vital role in the development of agriculture. Major source of surface water irrigation in the district is the Left Bank Canal of Nagarjuna Sagar Project. Perennial rivers flowing through the district have been the important source of 24
Irrigation. a) Tanks Khammam district has a network of Nagarjuna Sagar left canal system besides this about 55,522 hectares are covered by tank irrigation in all mandals in the district. b) Wells Tube wells and Filter points covers 19,223 hectares and 39,517 hectares covered by other wells system besides this 21,729 hectares covered by lift irrigation in the district. c) Canals Nagarjuna Sagar left canal is the main canal source of the district irrigating 97,479 hectares area covered under this Project. i) Major Irrigation. Nagarjuna Sagar Left Canal. 97,479 Hectares. ii) Medium Irrigation. Reservoir
area in hec
Wyra Reservoir.
9308
Lankasagar.
2975
Peddavagu.
3237
Taliperu.
9595
Mooka mamidi.
890
Bayyaram.
2914
Varieties of chillies cultivated The various varieties of chillies cultivated are Hybrids tejaswani, Roshini, Jwala, Guntur varieties about 60-70% of the total chillies area. Local varieties LR-1, Enginampadu, and non seed chillies (F2of hybrids) nearly 30% of the total chillies area.
25
WARANGAL DISTRICT Climate: Warangal district generally tends to be dry and there is not much fluctuation in the temperature. The rainy season sets in the district with the onset of South – West monsoon in the second week of June and ends with the month of September. The normal annual rainfall of the district is 1048 mm and average distribution is as follows. South – West Monsoon
: 803.2 mm
(June to September) North – East Monsoon
: 179.5 mm
(October to December) Winter Period
: 27.8 mm
(January to February) Hot Weather Period
: 65.3 mm
(March to May)
Irrigations: In Warangal district area under irrigation is 53 per cent. The details are as follows. a) Total land under cultivation
: 5.06 lakh ha.
b) Total area under irrigation
: 2.68 lakh ha.
c) Total area under rain fed
: 2.38 lakh ha.
Areas under Irrigation source wise are as follows
1. Canals
0.02 lakh ha.
2. Tanks
0.71 lakh ha.
3. Well/Tube
1.91 lakh ha.
wells 4. Others
0.04 lakh ha.
Wells and tubewells are the major source of irrigation (71.27 %) followed by tanks 26.50 %. Warangal is known for major tanks like Ramappa, Pakal, Laknavaram, and Ghanpur.
26
2.
Soils : The soil fertility status of the district is as follows :
Sl No.
Fertility status
No. of mandals in the status
Low
Medium
High
1.
Organic carbon
43
7
--
2.
Phosphorous
42
5
3
3.
Potash
--
12
38
Majority soils of the district are neutral in reaction. Zinc deficiency soils are spread over in 64937 ha. and problematic soils in 8100 ha. Red soils are predominant in the district. 3.
Croping pattern:
The predominant crops in district are Rice, Cotton, Maize, Groundnut, Greengram, Chilli. The crop details are as follows: Sl. No.
Crop
Area in ha.
Production in
Productivity in
`000 tonnes
Kg/ha of Warangal
1
Rice
168045
462912
2755
2
Maize
42867
132616
3094
3
Greengram
42559
23535
553
4
Redgram
32455
11619
358
5
Groundnut
63931
67470
1054
6
Chillies
21983
51606
2348
7
Cotton (Lint)
129509
44548
344
Varieties of chillies The various varieties of chillies cultivated are Hybrids Wonder heart, Ravindra, Roshini, Beeju Seetal, NS -170 about 50-60% of the total chillies area.
27
Local varieties Red Sun Red Top, Gongotri, Saral-1 and non seed chillies (F2 of hybrids) nearly cover 30-40% of the total chillies area.
Mapping of quality and quantity of chillies in Khammam and Warangal
The area under chillies is increasing constantly every year from time to time .In 1955-56 it was mere 1.7% and it rose to 11.8% in 1991-02. The area under chillies is rapidly alternating with cotton based on price of chillies in the market. GRAPH SHOWING IN % OF THE TOTAL AREA IN CHILLIES FROM 1955-56 TO 2001-02
PERCENT OF TOTAL AREA DURING THAT YEAR
14 12
11.8
10.9
10
9.8
8 6.3
6 4 2
1.7
2.1
0 1955-56
1961-66
1971-72
1981-82
1991-92
2001-02
YEARS
The area and production of chillies in Khammam and Warangal had been under steady rise from 1991. It reached the peak in 1996-97with more then 28000 hectares of land under chillies cultivation
IN KHAMMAM
IN WARANGAL
Area in
Prod. in
Prod. in
hec.
ton’s
area in hec
tons
1991-92
26347
37505
30305
34080
1992-93
27110
45249
34059
41173
1993-94
23193
52671
30511
54821
1994-95
19933
54877
31397
69068
1995-96
24210
57241
33059
54444
1996-97
28111
63094
35868
81700
28
1997-98
17388
43274
22889
32676
1998-99
20667
61864
30605
71444
1999-2k
25372
80055
33088
64068
2000-01
23692
70877
28672
68014
2001-02
22095
88211
27538
55553
2002-03
20552
60346
24525
47175
AREA AND PRODUCTION OF CHILLIES IN KHAMMAM AND WARANGAL 90000
HECTARE/TONNES
80000 70000 60000 50000 40000 30000 20000 10000 0
1991- 1992- 1993- 1994- 1995- 1996- 1997- 1998- 1999- 2000- 2001- 200292 93 94 95 96 97 98 99 2k 01 02 03
CHILLIES IN KHAMMAM Area in hec.
263472711023193199332421028111173882066725372236922209520552
CHILLIES IN KHAMMAM Prod. in ton’s
375054524952671548775724163094432746186480055708778821160346
CHILLIES IN WARANGAL area in hec
303053405930511313973305935868228893060533088286722753824525
CHILLIES IN WARANGAL Prod. in 340804117354821690685444481700326767144464068680145555347175 tons
YEARS
The area and production in chillies of the khammam and Warangal can be understood by the graphical representation. The area and production of the two districts can be compared. The areas in Khammam districts which have good irrigation facilities cultivate hybrid chillies like the Tejaswani, Roshni, and with poor or inadequate facilities go for local varieties like Enginapadu,
29
LR- 1, and others. The chillies cultivated are of better quality as the pesticide application is less compared to Guntur. The chillies growing areas in Khammam can be broadly be classified under two types, the one growing in khariff and the other in late khariff or the Rabi season. The acreage under khariff season crop is predominantly in the areas near to the khammam within radius of 25 to 50 km. The Khammam being centre for all activities and with well equipped market facilities, the farmers sell their produce at Khammam market. Thus a procurement centre at Khammam may add advantage to the organization with easy farm procurement from the market during the months of Feb, March, April, and May. The total area which can be covered by procuring from Khammam is around 66% of the total kharif area from the last 4 years data .Similarly the company can go for procurement from Bhadrachalam as the mandals which fall in the radius, cover an average area of around 77% and about 77.52% of production from past 3 years data Average percentage area under chillies in Khammam during Rabi season Burghampad Dummugudem Venkatapuram 6% 3% Wazeed 4% Kukunoor Charla 3% 8% 9% Pinapaka 10%
V.r.puram 5% Kunavaram 5%
Bhadrachalam 29%
Velairphad 4%
The pie chart shows that the area under chillies Rabi season is maximum under Bhadrachalam fallowed by Pinapaka and Charla. The nursery work starts from last week of July and the Chillies picking start from last week of November and continues till April 2nd or 3rd week. Average percentage area under chillies in khammam during Kharif season The khammam mandals which grow chillies in kharif season are shown in the pie chart. The mandals like the Khammam (u), Thirumaipalem, Mudhigonda and Khammam ® are the mandals which have more area under chillies cultivation. 30
Enkoor SingareniKamepally5% 4% 6%
Mudigonda 7%
Khammam(u) 11% Kusumanchi 4% Khammam® 7%
Garla 4%
Madhira Yerrupalem Bonakal 5% Chintakani4% 6% 4%
Tirumalaipalem 10%
Average percentage area under chillies in Warangal during Kharif season The areas in Warangal cultivate chillies during the month of June –July to Feb.-March. The areas cultivating chillies fall within radius of about 50 kms from Warangal. These areas cover about 66.4 % of area and production of about 66.9 %. Thus a procurement centre at Warangal may be beneficial to the company. The pie chart shows the average percentage of production of various mandals.
chityal regonda 3% 6% shayampet 4%
bhupalpalli 2%
parkal 5% atmakur 3%
dornakal kesamudram 7% 2% nekkonda 3% narsampet 2% duggondI 4%
palakurti 1%
nallabelli 2%
nellikudur 1% mangapet 5%
mulug 3% venkatapur 3% ghanpur(mulug) eturunagaram 7% 5%
31
To know the Production, Yield patterns, Price trends and Farmers realization price. The top ten mandals of khammam near the procurement centre contributed 9560.66 acres (65%) and about 28981 tonnes of chillies (63%).These mandals cultivate mostly hybrid chillies varieties like the Tejaswani or Roshni. The average productivity of the hybrids was 19 qtls from the data collected from 30 farmers from each mandal.The local varieties cultivated included varieties like the Enginapadu, LR-1. The average yield under these conditions was about 16 qtls.
Area and production of top ten mandals of khammam
7000
Khammam(u) Tirumalaipalem
6000
5000
4000
Mudigonda
Khammam® Bonakal
acres/ tonnes
Madhira 3000
Chintakani Yerrupalem Konijerla
Kusumanchi Tirumalaipalem
2000
Nelakondapalli Wyra 1000
0
Nelak Mudi onda gond palli a
Kha Kusu Kha Tiru Yerr Chint Konij Madh Bona mma manc mma malai upale W yra ira kal akani erla m(u) hi m® pale m
Average area in acres
311.7
978
1663
567
966
Avg production in tonnes
1144
3589
6104
2081
3546
1503 737.3 860.3 595.7 649.3 5518
2706 3152
2187
2384
501
228
1839 836.8
mandals
The area and productivity of the top ten mandals of Warangal contribute to about 66.4% of the total area and about 69.99% of area and 69.66% of production. The farmers under irrigated conditions cultivate hybrid chillies like the Ravindra, Wonder heart, Beeju seetal. The average 32
yield was about 19-22 qtls per acre. The farmer with poor irrigation facilities cultivate the open pollinated varieties like the Red sun, Red top, Saral -1 etc. the average yield of these varieties were 14-17 qtls per acre.
Area and production of top ten mandals of Warangal 8
percentage
7 6
area% prodn. %
5 4 3 2 1 0
area%
gha han mo bhu ma etur shy gee ven dor reg dug atm nall par sug mul kat ina am npu ma gull pal nga nak ond gon aku aba kal ond ug apu gar pet r(m kon apa apa pet al a di r lli ulu a a am a r da lli lli 7.2 6.9 5.1 5.6 5.2 3.4 4.5 4.5 3.8 3.3 3 3.2 2 3.4 2.2 2.3
prodn. % 7.1 6.9 5.1 5.6 5.1 3.4 4.5 4.5 3.6 3.3
3
3.2
2
3.4
2
nar nek se kon mp da eta 2.5 1.9
2.3 2.7 1.9
mandals
Market prices and farmers realization price.
The market arrivals in khammam and Warangal showed that the chillies arrival was maximum during the months of Feb, March, April, may and June compared to the other months of the year in both the district markets. The market prices had inverse relation with the arrivals in the market. The more the chillies arrival to the market the greater will be fall in the prices. The farmers realization price since past 3years was
rupees per quintal
farmers realization price last 3 years 4000 3000 2000 1000 0
Series1
2004-05
2003-04
2002-03
years
33
Market arrivals and market prices in Khammam and Warangal
Arrivals in khammam market The maximum quantity of chillies in khammam district arrives to the market during the months of Feb, March, April, and May. These four months are important as the farmers can be
march
feb
jan
dec
nov
oct
sept
august
july
june
1999-2000 2000-01 2001-02 2002-03 2003-04
may
100000 90000 80000 70000 60000 50000 40000 30000 20000 10000 0
april
arrivals in quintals
approached directly in the market for purchasing during these months.
Arrivals in Warangal market The arrivals of chillies in Warangal market is maximum during the months of March April. Almost 60% of the produce comes to market during these months. So the company can directly purchase from farmers from market during these two months.
1998-99 1999-2000 2000-01 2001-02 2002-03 2003-04 2004-05
180000 160000 140000 120000 100000 80000 60000 40000 20000 0
april
june
august
oct
dec
feb
34
Market prices of chillies in Khammam and Warangal MARKET PRICES IN KHAMMAM MARKET The prices of chillies on an average recorded least during the months of Feb, March, April, and May. This was because more quantity of chillies arrived to the market and the lack of demand lead to drop in the prices of chillies. The company should go for purchasing during these months as the prices are less. 4000
arrivalsinq u in tals
3500
3000
2500
2000
1500
1000
500
0
april
may
june
july
august
sept
oct
nov
dec
jan
feb
march
1999-2000
2713
2993
2836
2738
2525
2916
2763
2656
2504
2696
2462
2614
2000-01
2516
2173
1838
1879
1786
1660
1607
1505
1391
2020
2059
2260
2001-02
2502
2444
2829
3002
3119
3092
2528
2105
2576
2459
2503
2570
2002-03
2281
2047
2064
2121
2149
2249
2531
2457
2545
3027
3244
3485
2003-04
3802
3968
4125
3986
3540
3314
3213
3292
4004
4191
3706
3099
The market price of chillies varied every year. These rapid fluctuating prices caused the farmers to shift the crop from chillies to cotton, thus the next year price was promising to those farmers who cultivated chillies. MARKET PRICES IN WARANGAL MARKET The prices of chillies on an average recorded least during the months of Feb, March, and April. The majority of the farmers brought their produce during these months, thus leading to drop in the prices The Company should go for purchasing during these months as the prices are less.
35
Market prices per quintal in Warangal market 4500 4000
rupeesperquintal
3500 3000 2500 2000 1500 1000 500 0 april
may
june
july
augus t
sept
oct
nov
dec
jan
feb
march
2000-01
2969
2805
2684
2431
2181
2265
2043
2229
2857
2506
2219
2653
2001-02
2616
2456
2717
2901
2997
2774
2554
2255
2460
2675
2487
2565
2002-03
3049
2650
2600
2439
2502
980
2900
2450
3500
3320
3614
3855
2003-04
3746
3899
3800
3669
3405
3125
2900
3344
3718
4250
3246
2821
2004-05
2529
2418
2320
36
Cost of cultivation of Chillies and Two Alternate crops The cost of cultivation of chillies varied based on various conditions such as Variety cultivated--- hybrid or local Size of holding ----small or big farmer Irrigated or rain fed Source of irrigation---canals /wells/lift irrigation from river basin Mechanized cultivation or traditional
The cost of cultivation was calculated based on the following assumptions made The cost of production is for the high yielding varieties which are fertilizer responsive. The farmer or his members are also paid for their work in the farm. The average yield is taken from the samples mean of about 50 farmers. Market prices of the chillies are based on the market price prevailing in the market.
Thus the following cost of cultivation was arrived.
37
COST OF CULTIVATION COMPARISION OF DIFFERENT CHILLIES VARIETIES PER ACRE S.NO 1
OPERATIONS Total cost of nursery land preparation
CHILLIES HYD 1610
CHILLIES LOCAL
DIRECT SOWN CHILLIES(F2) 1610
0
a
summer ploughing
700
700
700
b
leveling/harrowing
350
350
400
c
collection of thrash
90
90
90
d
ploughing PREPARATORY CULTIVATION transplanting cost of seed FYM applied fertilizer application fertizers applied DAP/14:14:14/17:17:17/28:28:28 UREA+POTASH AMMONIA+POTASH CALCIUM MICRO NUTRIENTS plant protection application plant protection chemicals used intercultivation weedings irrigations harvesting yieldsin kgs drying sorting bagging /filling in bags TOTAL COST OF PRODUCTION cost per quintal COST PER KG PRODUCED transportation loading unloading weighment TOTAL COST HERE price per quintal price per kg Avg. selling price COMMISSION Cost incured till final selling
400
400
400
540 1950 800 540
510 400 800 540
300 400 800 540
4500
3500
3500
1680 5000 800 900 600 5700
780 4500 600 900 480 4800
780 4500 1200 900 480 4800
480 720 290 27170 1430.00 14.30 610 122 122 122 28040 1475.79 14.75 51300 2565 30605
240 540 240 21980 1373.75 13.74 480 96 96 48 22700 1418.75 14.18 33600 1680 24380.00
240 450 240 20720 1295.00 12.95 480 96 96 48 21536 1346.00 13.46 33600 1680 21440
2
3 4
5 6 7 8 9 10 11 12 13 14
15
38
1610.78 20695.00 1-1.89 19
cost per quintal profit cost beifit ratio yields in QTLS
1523.75 9220 1-1.53 16
1347.62 12060 1-1.62 16
Cost of cultivation of hybrid chillies The cost incurred in the cultivation of hybrid chillies is shown with the help of te pie chart. The plant protection chemicals namely fertilizers and chemical incur about 32% of the total cost and the cost of the pickings costs around 19% of the total cost of cultivation. Thus if the company wishes to go for contract farming reducing the costs on the chemicals may be beneficial, as it reduces the total investment and improves quality of produce.
COST OF CULTIVATION OF ALTERNATE CROPS CROPS cotton red gram black gram red gram+black gram
cost of cultivation profit per acre cost benefit ratio 16460 9240 1.58 4290 6210 1.45 4200 1400 0.33 4530
11570
2.55
39
VALUE CHAIN OF CHILLIES The value chain of hybrid chillies begins after the chillies are harvested. At this stage the cost of cultivation is Rs 26100 or to 1373.68 per quintal. Cost of seed
1950
Cost of fertilizer
4500
Cost of pesticides
5000
Lab our costs
14650
Total cost of cultivation
26100
Rs 13.74/kg
The chillies after they are picked are dried on cement floor and the moisture content is reduced to 15%. An average bag of chillies after harvesting weighs 60 Kgs .This when it’s dried for 10-15 days, the weight of the bag of chillies comes down to 35 Kgs .because of loss in moisture . WORKING OF PRICE RISE AT EACH STAGE OF VALUE CHAIN OF CHILLIES 1) Drying of chillies 60 Kgs
on drying
35kgs
1 Kg
on drying becomes =1*35/60
=0.585kgs
So, 1 kg on drying is reduced to 0.585 Kgs So, there’s loss in moisture and the same price is holds for 0.585kgs 0.585
Rs 13.74
1 kg dried chillies cost =13.74*1/0.585 Cost per kg of chillies after drying
=23.487+labour charges =Rs 23.603/kg
2) Grading of chillies The infected /spotted white coloured or discoloured chillies are separated from the whole lot dried. This graded chilli fetches good price in the market. During grading there loss of about 12.5% .the poor quality of chillies separated called “tallu” is sold at very low price. Of 16 qtls (1600kgs) I kg
2qtls (200kgs) -------tallu ? =1*2/16=0.125kgs 40
This is loss to the farmers and they have to bear the costs involved. So 0.875(1kg-loss of tallu)
same price as dried chillies=23.61
1 kg cost
23.61*1/0.875 = Rs 26.983
Cost per kg of chillies after grading=cost after loss of tallu+labour charges (0.284/kg) = 26.983+0.284 Rs =27.2672/kg 3) Bagging costs The graded chillies are filled in gunny bags. The costs incurred during this stage are Cost of empty bag
Rs 10/ 30 Kgs =0.34/Kg
Cost of filling
Rs 5/ 30 Kgs=0.17/Kg
Cost per kg after filling
Rs = 27.7772/ kg
4) Transportation These chillies are now transported to the near by markets. The costs incurred during transportation are Cost of transportation
Rs 10/ 30 Kgs =0.34/Kg
Cost per kg after transportation
Rs 28.1172/ kg
5) Market handling charges Loading /unloading The various operations charges in the market like the loading and unloading of the produce charge are as fallows Cost of loading and unloading
Rs 4/ 30 Kgs=0.13/Kg
Cost of chillies per kg after loading and unloading
Rs 28.2472/ kg
Weigh men chares Cost of weigh men charges
Rs 1/ 30 Kgs=0.034/Kg
Cost of chillies per kg after weigh men charges
Rs 28.2472/ kg
Commission charges The commission varies from farmer to farmer. It varies from 3-5% Cost of commission Cost of chillies per kg after commission
Rs1.35/Kg Rs 29.6312/ kg
41
VALUE CHAIN OF CHILLIES
- Schematic
SEEDS Rs 1950
Fertilizers Rs 4500
CHARGES PER Kg
Pesticides Rs 5000
Total cost of cultivation Rs 26100
Drying 0.12/kg
Labour costs Rs 14650
Rs13.71/kg Loss of weight 40-50%
Cost of chillies comes to
Grading Rs0.284/kg
Dried graded chillies Bagging /filling Rs 0.34+0.17
diagram
Rs23.61/kg
Loss of discoloured Fruit “Tallu’ 12.5%
Total cost Rs27.77/kg Total cost Rs28.11/kg
Transportation Rs0.34/kg
Total cost Market handling Loading / unloading/ balance 0.13+0.034
Rs28.28 /kg Commission charges Rs1.35/ kg
Cost per kg 29.63 Traders
42
PROCUREMENT CENTRES The company can have potential procurement centre in khammam and Warangal. These centres will help the company in easy farm procurement directly from the farmer.
Procurement centre at khammam The areas in khammam district growing chillies in kharif can have centre at khammam
Reason for suggesting khammam as procurement centre are Khammam has large chilli area under cultivation both khammam (U) And ® form about 20% of the total chillies cultivation of the district The mandals around khammam falling within a radius of about 20 to 25 Km can be targeted The whole of the bunch of mandals contribute to about 65 to 70 % of the total area under chillies The district head quarter has market yard where the farmers come to sell the chillies and then go to other markets like Warangal The procurement centre suggested have all the important offices of the district, and so permission /data / documents required may be easily obtained. The khammam is connected with rail and state highway, so long distance transporting of the produce can be done within hours based on mode of transport, so cost can be saved .
43
The company wishes to procure from the farmer directly from the farm than from
market, then this centre may act for dual purpose PROCUREMENT CEN TRE FOR KHAMMAM KAMEPALLY
ENKURU Thirumaipalem KHAMMAM®
KHAMMAM(U) KONIJERLA
KUSUMANCHI
MUDIGONDA WYRA CHINTAKANI BONAKAL MADHIRA
The areas around khammam which can be easily accessible to the procurement centre are Distance from procurement centre
Average area in acres 16
311.67
2.13
Avg production in tonnes 1144.26
17
978.00
6.68
3589.24
6.669
0
1663.33
11.37
6104.03
11.34
25
567.00
3.87
2081.35
3.867
5
966.00
6.60
3545.71
6.588
22
1503.00
10.27
5517.59
10.25
60
737.33
5.04
2706.01
5.028
45
860.33
5.88
3151.77
4.063
44
595.67
4.07
2186.64
4.429
26
649.33
4.44
2383.53
3.417
22
501.00
3.42
1838.76
3.417
19
228.00
1.56
836.76
1.555
9560.66
65.33
28981.68
62.749
mandal
Nelakondapalli Mudigonda Khammam(u) Kusumanchi Khammam® Tirumalaipalem Madhira Bonakal Yerrupalem Chintakani Konijerla Wyra total
% of avg.
% of total production 2.126
The total area which can be covered by procuring from khammam is around 66% of the total kharif area as per last 4 years data
44
Procurement centre at Bhadrachalam Similarly the company can go for procurement from Bhadrachalam as the mandals which fall within the radius, cover an average area of around 77% and about 77.52% of production as per data of last 3 years. These Mandals include
Mandal
Burghampad Kukunoor Velairphad Bhadrachalam Kunavaram V.r.puram Charla Dummugudem Venkatapuram Wazeed total
Distance from procurement centre in kms
5 50 55 0 50 55 40 19 90 110
2003 2002 2001 average % 241 222 250 237.67 2.63 879 886 460 741.67 8.21 300 268 600 389.33 4.31 2775 2675 2415 2621.67 29.02 306 275 803 461.33 5.11 437 426 550 471.00 5.21 854 865 815 844.67 9.35 481 462 247 396.67 4.39 565 528 480 524.33 5.80 250 264 260 258.00 2.86 7088 6871 6880 6946 77
PROCURMENT AREA MODEL VENKATAPURAM- 90 KMS
Avg production
% avg production
891.50
2.65
2781.04
8.28
1460
4.34
9831.01
29.25
1730.71
5.15
1766.52
5.26
3167.99
9.43
1487.71
4.43
1966.48
5.85
968.02
2.88
26050.98
77.52
N N
CHERLA- 50 KMS DUMMUGUDEM
19KMS
BHADRACHALAM BORGAMPADU
5-8KMS KUNAVARAM 50 KMS KUKUNOOR 50KMS
VR PURAM VELAIRPAD
55KMS
55KMS
45
__ Reason for suggesting Bhadrachalam as procurement centre The research findings make it possible to infer Bhadrachalam as the procurement centre because The Bhadrachalam is the connecting link to the all parts of the district which lie on the other side of Khammam district beyond river Godavari The Bhadrachalam holds about 32% of the total area under chillies cultivation and about 29.25% of the production, so the company can reduce the cost of procurement in transportation. The Bhadrachalam is suitable for centre of procurement as all important offices are present at this point which are needed for permission/documentation There are no nearby markets in any mandals in and around Bhadrachalam for chillies. By setting up procurement centre at Bhadrachalam, the farmers may bring their produce to Bhadrachalam as the route to Jagdhalpur where the farmers used to take their produce is Just 14 Kms. The other areas are under the forest cover and so in terms of organization safety they are not advisable. The Bhadrachalam is the centre of the all the mandals as stated earlier and all are at a distance of appox. 50 kms from Bhadrachalam
Procurement centre at Warangal The total area which can cover by procuring from Warangal is around 66% of the total kharif area from the last 3 years data. . The area and productivity of the top ten mandals of Warangal contribute to about 69.99% of area and 69.66% of production. The farmers under irrigated conditions cultivate hybrid chillies like the Ravindra, Wonder heart, Beeju seetal. And open pollinated varieties like the red top, red sun, and saral-1. 46
mandal ghanpur(mulug) dornakal mangapeta regonda parkal geesugonda duggondi eturinagaram shyampeta atmakur mulug venkatapur nallaballi hanmakonda mogullapalli bhupalapalli nekkonda narsempeta total%
distance from centre 50 95 115 38 31 12 25 100 25 20 50 60 30 5 45 60 75 30
area% 7.17 6.91 5.08 5.59 5.16 3.41 4.48 4.53 3.77 3.3 3.01 3.22 2.04 3.42 2.18 2.31 2.47 1.94 69.99
Prodn. % 7.14 6.89 5.05 5.57 5.14 3.39 4.46 4.51 3.62 3.29 3 3.21 2.04 3.36 2.01 2.3 2.73 1.93 69.64
PROCUREMENT MODEL OF WARANGAL MANGAPETA
GHANPUR MULUGU
115 KMS
50 KMS VENKATAPUR
ETURINAGARAM 100 KMS
NARSAMPETA 30 KMS
REGONDA
MULUGU 50 KMS
SHAYAMPET PARKAL 31 KMS
DUGGONDI 25 KMS
ATMAKUR
20 KMS
GEESUGONDA 18 KMS DORNAKAL
HANMAKONDA 5 KMS
WARANGAL
BY TRAIN
REASONS FOR SUGGESTING WARANGAL AS PROCUREMENT CENTRE
The Warangal is safe compared to other areas. The other areas are deep under the forest cover .
The Warangal centre has all the important offices needed for the necessary documentation. 47
The transport facilities to other areas are accessable. The Warangal is adjacent to khammam on one side and karimnagar. These two districts have large area under chillies cultivation
The Warangal chillies market is big and chillies from other areas can also be assembled if the centre is at Warangal.
The chillies growing mandals are 80-100 kms from the procurement centre.
The company by setting up centre here may follow both strategies like purchasing from the market and direct farm procurement.
PROCUREMENT STRATEGIES Strategies for procurement in Khammam AND Warangal The organization may follow a flexible strategy in procuring of chillies. Direct purchasing through procurement centre established The strategy is to establish procurement centre of its own at khammam taking up direct procurement of chillies from the markets or farms during the months of Feb, march, April and may at the price prevailing in the market. The chilies arrival during above four months was more then 20,000quintals per month.The organization should have knowledge of the chilies area under cultivation in every season; it will help the organization to estimate the price. Thus the company can also estimate necessary fall or rise in prices during that season. The company can also take up direct farm procurement strategy like Direct on farm procurement The company is advised to establish procurement centres in khammam and Warangal The company is advice to have sub centre functionaries i.e. contact farmers at each mandal level.
48
The contact agent should maintain the list of the all farmers who are interested to sell the produce to ITC. At the same time the contact person should have the list of farmers with variety, quantity, village etc and send to the procurement centre. Based on the data the company should go for procurement in those mandals and carry purchasing. This will help the company in reducing the cost of transportation (due to economies of scale). The company, like the traders, levy the cost of transportation and other operations involved, on the farmers from whom purchase is made. Condition favouring direct onfarm procurement The farmers are willing to sell directly, but payment from the buyers forces them to have commission agents who are responsible for the payment. The farmer may be more interested in the involvement of the commission agent as it may increase the profits. The company may get price advantage of about Rs 200-300/Q as the costs incurred by the farmer to transport and commission may be the same The company can specify terms in coming seasons about the quality parameters like the colour, etc which are required for the purpose of procurement. DISADVANTAGES The company should be able to judge the moisture and other quality parameters on farm and decide the price. The error in these aspects may be loss to the company If the company eliminates the commission agent, then it should ensure prompt payments to the farmer.
Procurement strategy for late khariff or in Bhadrachalam The organization may fallow contract farming and strategy of direct purchasing through procurement centre. The organization may take up the contract farming strategy in Bhadrachalam and purchasing from other areas through procurement centre at Bhadrachalam.
49
Conditions favoring Contract farming The land holding pattern is basically consisting of marginal and big farmers, so the company may pursue the large farmer for the contract farming. The Bhadrachalam occupies about 29% of the total area and production of chillies in Rabi season. The farmer regularly during to the cropping season regularly get loan from the commission agents for the purchase of inputs and other farm requirement, thus the company may fulfill these aspects The farmers are loyal to sell their produce though those commission agent or traders from whom they got loans. The farmer may be educated on the terms of quality aspects of the output. Quality: Firms have a higher degree of control over the quality and uniformity of the produce because theoretically, they can dictate quality control measures and farming methods. Contract terms may state that only produce of a particular quality will be purchased, creating an incentive for farmers to pay attention to quality.
Limitation The farmers must be made known about the terms and conditions of contract farming The company and farmer must decide on the procuring price of the produce. The company must be aware of 1/70 act, under this, no one is authorized to buy, sell the property of the tribal. And there are no land registrations in these areas, it adds to risk of the organization. Poor farmer relations: The relationship between farmers and firms can quickly deteriorate with poor management and a misunderstanding of the practices. This can result in higher incidences of contractual breach by farmers. Extra-contractual selling: If market conditions improve, farmers may ignore their contractual duties and sell in the open market. Misallocation of resources: Farmers may use firm’s credit and input for non-contractual operations, causing a lower yield for contracted crops
Research findings Conclusions from the study of khammam district The average area under chillies the past 3 years data in khammam is 14663 hec. in khariff and 9033 hec in rabi . 50
About 60%of the area which is irrigated is under the cultivation of Tejaswani and the rest is under the non seed Tejaswani, LR-1, Enginapadu variety where less irrigation facilities are available. The farmers’ application of pesticides is judicious and mostly need based, except for few farmers. The chillies growing areas around khammam are within 20-25 kms radius and they incur uniform cost of cultivation Most of the farmers market their produce at khammam market through the commission agents The economies of scale operate in cost of cultivation; the cost of cultivation varies inversely with the area under cultivation. It is observed that price plays a dominant role in the cultivation of chillies for e.g. the price (2004-05) of chillies is very poor, so the next year area under chillies would drastically get reduced Farmers are willing to sell the produce on farm directly with reduction of about Rs 200-300per quintal. As it saves money in marketing of the produce and also the commission paid to the commission agents. The farmer’s alternate crops to chillies are cotton and the next best alternative is maize or pulses. During unfavorable market prices the chillies farmers reduce the area under chillies but the shift to other crops completely did not exist. The cost of cultivation of hybrid chillies worked out approximately Rs 27170 per acre and when the marketing cost was added, it amounted to about Rs 30605 per acre. The cost benefit ratios was about 1:1.89 The cost of cultivation of the traditional or the local varieties was about Rs 24380.00 per acre and cost benefit ratio was about 1:1.53 The cost of cultivation of the alternate crops like cotton was about Rs 16760 per quintal and that of the pulse crops was about Rs 4290 per acre. The cost benefit ratios of cotton and pulses were about 1:1.58and 1: 1.45 respectively. The farmer’s survey showed that the farmers were inclined towards the chillies cultivation than the alternate crops, as a chilli is highly remunerative crop and their investment will be paid off if the market price is good. Conclusions from study of Bhadrachalam mandal ¾
The chillies crop in Bhadrachalam is sown in late kharif. The onset of sowing for nursery starts from June –July and the nursery is transplanted after August
¾
The pickings start from 1st week of Dec and continue every 15-20 days based in the variety. 51
The cost of cultivation is slightly higher than other areas due to excess application of fertilizers i.e. 20-
¾
25bags of fertilizers per acre The higher cost of cultivation may be accounted to the high for irrigation costs. The chilies are grown
¾
near or on the banks of Godavari, so the source of irrigation is lift irrigation. The farmers use diesel motors to lift water from the river. Thus each irrigation costs about Rs 450/- and total of 8-10 irrigation cost Rs 4000/- . ¾
The more the distance from the river, the farmer had to use two electric motar to lift the irrigation to reach his source.
¾
The area under the Bhadrachalam lack market for chillies ,the farmer take their produce to Jabalpur which is about 237kms from Bhadrachalam
¾
It is also seen that the cost of cultivation decreased with increased area under cultivation. The reasons were the fertilizers were judiciously applied taking the whole area under cultivation
•
e.g. 20-25 bags per acre of the fertilizer
•
and 45 bags per hectare of the fertilizer
•
also the cattle pair per day costs Rs 150/- which covers 2-3 acres Thus the more the area, the lower the cost of cultivation.
Conclusions from the study of Warangal district
The area under chillies was about 17930 hectares and production was 51250 MTs.
The ratio of area under hybrids and local varieties is 60:40
The farmers cultivate hybrids like the Ravindra, Wonder heart, etc and the local varieties like the Red top, Red sun, Saral -1 and other open pollinated varieties.
It was observed that the farmers of Mogulapalli, Ghanpur (Mulug) and Bhupalapalli cultivated the Chapata variety of chillies.The average yield of this variety was 12-15 qtls per acre.
The average yield of the hybrid chillies was higher in areas of Mangapeta and Eturinagaram. The minimum yield of the chillies hybrid was 20 qtls
The cost of cultivation of the chillies was slightly higher than that of Khammam. It varied by Rs 2000 per acre. This was due to the excess application of pesticides and chemicals.
The farmers sell the produce in Enamamula market in Warangal
Like in Khammam, the farmer’s alternate crops were cotton, maize or pulses under rainfed cultivation and cotton and turmeric during the irrigated conditions.
52
RECOMMENDATIONS AND CONCLUSIONS
53
Chapter IV
RECOMMENDATIONS AND CONCLUSIONS The company should have knowledge of the area and production of the crop each year. It helps the company to estimate the price at the end of the season The company is advised to establish procurement centres in khammam and Warangal The company is advised to have sub centre functionaries i.e. contact farmers at each mandal level. The company when it enters procurement, wide scale publicity in leading news papers so that the farmers become aware and approach than directly for selling. The contact agent should maintain the list of the all farmers who are interested to sell the produce to ITC. At the same time the contact person should have the list of farmers with variety, quantity, village etc and sent to the procurement centre everyday evening Based on the data the company should go for procurement in those mandals and carry the purchasing. This will help the company in reducing the cost of transportation (due to economies of scale). It’s also advised, that the company should have its own equipment like electronic weighing machines, moisture meters etc so as to convince the farmers about the quality and its price in the market. If the company is keen on direct procurement or elimination of middlemen, then it should maintain prompt payment to the farmers. As the “middlemen” according to the farmers is “responsible person to pay in case purchaser is default. If the company wishes to enter in a big way then cold storage at Dornakal will add advantage to store the produce
Conclusion The chilli is highly remunerative crop. The procurement of chillies is one of the profitable businesses keeping in view the domestic and global demand. There are no major players in areas of khammam and Warangal, so the procurement may prove to be beneficial and cost effective. But the company to avoid losses should monitor periodically the area and production aspects in these areas, as it depends on price in previous season.
54
ANNEXURES
55
ANNEXURE 1 Questionnaire for farmers General 1 a) Name of the farmer................................................................. Age............................ b)Education.................................. c) Village...................................................... Mandal...........................................District........................................... 2) Total land holding ...................... 3) Total land under chillies. ............................................ 4) Source of irrigation rain fed/ tanks /bore wells/canals 5) Cropping pattern Kharif Rabi summer ........................... ................. .......................... ........................... ................. .......................... ........................... ................. .......................... 6) How long you are cultivating chillies 1-2 / 2-4 / 4--5 / >5 years 7) Type of soil red/ black/ dhabba/chalka ………………. 8) Sowing time Kharif ………….. Rabi ……………. 9) Yield of last 3-5 years Variety
Cultivated land Production in in acres. qtls
Productivity Kg./ha
Price Rs/qtls.
Cost of cultivation of chillies Labour costs TP- Tractor power CPD –Cattle pair day M -men W -women operation Owned Hired Wage rates amount S.no TP CPD M W TP CPD M W TP CPD M W 1 land preparation a Removal of stubbles b ploughing c Leveling 2 Application of 56
manures Carting Spreading Sowing Fertilizer application 5 Earthing up 6 Intercultivation 7 Weeding 8 Irrigation 9 Plant protection 10 Harvesting 11 Drying 12 Sorting 13 Bagging 14 Transportion Total B. Material costs s.no a b 3 4
1 2 3 a b c d
Quantity owned
Quantity purchased
Price per Value in unit rupees
Seeds Fym fertilizers
Plant protection chemicals a b c d e Interest on working capital=C Total operational costs(A+B+C) D. FIXED COSTS 1 Land revenue 2 Depreciation 3 Rental on land owned/ leased 4 Intrest on fixed capital Total costs Cost of cultivation of alternate crop 1…………….. 57
Labour costs S.no operation
Owned TP CPD M W
land preparation a Removal of stubbles b ploughing c Leveling 2 Application of manures a Carting b Spreading 3 Sowing 4 Fertilizer application 5 Earthing up 6 Intercultivation 7 Weeding 8 Irrigation 9 Plant protection 10 Harvesting 11 Drying 12 Sorting 13 Bagging 14 Transportation Total B. Material costs s.no
Hired TP CPD M
Wage rates amount W TP CPD M W
1
1 2 3 a b c d
Quantity Quantity owned purchased
Price per Value in unit rupees
Seeds Fym fertilizers
Plant protection chemicals a b c d e C. Interest on working capital=C Total operational costs (A+B+C) 58
D 1 2 3 4
FIXED COSTS Land revenue Depreciation Rental on land owned/ leased Interest on fixed capital Total costs
Cost of cultivation of alternate crop 2……………… Labour costs S.no operation Owned Hired TP CPD M W TP CPD M 1 land preparation a Removal of stubbles b ploughing c Leveling 2 Application of manures a Carting b Spreading 3 Sowing 4 Fertilizer application 5 Earthing up 6 Intercultivation 7 Weeding 8 Irrigation 9 Plant protection 10 Harvesting 11 Drying 12 Sorting 13 Bagging 14 Transportion Total
Wage rates amount W TP CPD M W
B. Material costs
s.no 1 2
Quantity owned
Quantity purchased
Price per Value in unit rupees
Seeds Fym 59
3 a b c d
fertilizers
Plant protection chemicals a b c d e C. Interest on working capital Total operational costs (A+B+C) D. FIXED COSTS 1 Land revenue 2 Depreciation 3 Rental on land owned/ leased 4 Interest on fixed capital Total costs 7) Time of harvesting ________ Cost of cultivation (Rs/ha)_______ Marketing aspects 1. What are the charges/Qtl that mentioned below? Mode of transportation …………………. Quantity carried per load ……………….. Transportation cost……………… Unloading…………………………. Stitching …………………………. Hamali charges…………………… Weighment……………………….. Handling loss …………………… Loading………………………….. Commission …………………….. Bagging…………………………. ………………………………… 2. To whom or where did you sell the produce? Name ___________________ Location _________ Quantity sold ________ No. Of bags.............................. 3. Selling price (Rs/Kg) ________ Avg.wt.of bag __________ 4. Do you have credit facility from moneylender or traders? Yes______ No__________ a) From whom? b) From where? c) How much/acre? d) Rate of interest? 5. Quantity of wastage during following stages?
60
Stage
Harvesting
Drying
Packaging
Transport
Market Yard
Volume
6.. .
What are control measures you are taking for wastage? .................................................................................................................... ..................................................................................................................... .................................................................................................................. 7 .Problems during post harvest handling. ................................................................................................................... ................................................................................................................ .................................................................................................................. 8. .Nearest market______________ 9. How far the market from the village_________
61
ANNEXURI- 2 Area under chillies in different districts CHILLIES Ye 1998-1999 Region
Area
Andhra Region
Coastal
Rayalaseema
Telangana Region
Area: Ha
1999-2000
2000-2001
2001-2002
2002-2003
District Srikakulam VijayaNagaram
Area 3539 3392
Production 7411 7395
Area 3249 3223
Production 6498 6446
Area 3060 2713
Production 6325 5809
Area 2852 2569
Production 7130 6423
Area 2167 2327
Production 2817 3025
Vishakhapatnam
5552
10693
4931
9862
4946
11553
4672
11680
3230
4199
East Godawari
2131
5573
1825
3650
1407
3508
1564
3910
1109
1442
West Godawari Krishna Guntur Prakasam Nellore Total Chittoor Cuddapa
5723 12213 36880 18895 3281 91606 3780 5046
10735 40232 131427 35596 9260 258322 5032 7658
4488 12985 59256 25519 3652 119128 3370 6246
8976 25970 118512 51038 7304 238256 6740 12492
5110 10939 50958 20990 2520 102643 3199 5046
7566 34115 149335 40168 7911 266290 3826 7350
4298 11208 51567 18267 1996 98993 3401 5465
10745 28020 128918 45668 4990 247483 8503 13663
3571 13584 59316 17843 2834 105981 2718 4195
4642 17659 77111 23196 3684 137775 3533 5454
4154 10839 23819 115425 11622 2941 0 9961
10171 12670 35531 293853 16617 3420 8796
5199 13207 28022 147150 14251 3621 0 10045
10398 26414 56044 294300 28502 7242 0 20090
3825 13341 25412 128055 12041 3102 0 8413
10227 14999 36402 302692 15761 6298 0 9953
3873 14984 27723 126716 10923 2976 0 7786
9683 37460 69308 316790 27308 7440 0 19465
2820 10993 20726 126707 11133 2723 0 7453
3666 14291 26944 164719 14473 3540 0 9689
2821 6671
6202 4997
2931 8980
5862 17960
2700 10106
5715 9009
2648 6528
6620 16320
2659 9351
3457 12156
12010 30605 20667 9834 107132
22711 71444 61864 35506 231557
12036 33088 25372 10315 120639
24072 66176 50744 20630 241278
11963 28672 23692 9258 109947
26577 68014 70877 11268 223474
9313 27538 22095 8305 98112
23283 68845 55238 20763 245280
11007 24525 20552 8718 98121
14309 31883 26718 11333 127557
222557
525410
267789
535578
238002
526166
224828
562070
224828
292276
Anatapuram Karnool Total Andhra Total MehaboobNagar RangaReddy Hyderabad Medak Nizamabad Adilabad KarimNagar
Telangana
ar
Warangal Khamam Nalgonda Total A.P Total Production: M.Ts.
62
Annexure 3 AREA AND PRODUCTION OF CHILLIES IN KHAMMAM DISTRICT Area under chillies in kharif mandal
2003
2002
Area under rabi
2001
average
% of avg.
2003
2002
yield Prod. In ton. in kharif
2001
average
in %
2003
2002
Prod. In rabi in ton. 2001
AVG
%
2003
2002
2001
Avg
%
Nelakondapalli
210
375
350
312
2.13
0
0
0
0
0
kg/he c 1695
771
1377
1285
1144
2.1
0
0
0
0
0
Mudigonda
1309
799
826
978
6.68
0
0
0
0
0
1695
4804
2932
3031
3589
6.7
0
0
0
0
0
Khammam(u)
1726
1666
1598
1663
11.37
0
0
0
0
0
1695
6334
6114
5864
6104
11
0
0
0
0
0
Kusumanchi
562
464
675
567
3.87
0
0
0
0
0
1695
2063
1703
2478
2081
3.9
0
0
0
0
0 0
Khammam®
956
1058
884
966
6.6
0
0
0
0
0
1695
3509
3883
3245
3546
6.6
0
0
0
0
Tirumalaipalem
836
1748
1925
1503
10.27
0
0
0
0
0
1695
3069
6417
7067
5518
10
0
0
0
0
0
Madhira
800
804
608
737
5.04
0
0
0
0
0
1695
2936
2951
2231
2706
5
0
0
0
0
0
Bonakal
1250
716
615
860
5.88
0
0
0
0
0
1695
4588
2628
2257
3158
5.9
0
0
0
0
0
Yerrupalem
550
667
570
596
4.07
0
0
0
0
0
1695
2019
2448
2092
2187
4.1
0
0
0
0
0
Chintakani
410
736
802
649
4.44
0
0
0
0
0
1750
1505
2702
2944
2384
4.4
0
0
0
0
0
Konijerla
658
437
408
501
3.42
0
0
0
0
0
1700
2415
1604
1497
1839
3.4
0
0
0
0
0
Wyra
200
242
242
228
1.56
0
0
0
0
0
1750
734
888
888
837
1.6
0
0
0
0
0
Sathupally
0
0
0
0
0
19
22
15
18.7
0.21
1750
0
0
0
0
0
71
82
56
69.75
0.21
Thallada
410
379
300
363
2.48
5
5
0
3.33
0.04
1750
1505
1391
1101
1332
2.5
19
19
0
12.67
0.04
Kallur
250
83
100
144
0.99
5
5
0
3.33
0.04
1750
918
305
367
530
1
19
19
0
12.67
0.04
Penubally
0
0
0
0
0
60
50
60
56.7
0.63
2000
0
0
0
0
0
225
188
225
212.5
0.63
Vemsoor
0
0
0
0
0
200
168
125
164
1.82
1750
0
0
0
0
0
750
630
469
616.3
1.83
Garla
655
616
650
640
4.38
190
185
0
125
1.38
2000
2404
2261
2386
2350
4.4
713
694
0
469.1
1.4
Bayyaram
325
332
550
402
2.75
123
129
0
84
0.93
1750
1193
1219
2019
1477
2.7
461
483
0
314.8
0.94
Singareni
545
682
635
621
4.24
0
0
0
0
0
1695
2000
2503
2330
2278
4.2
0
0
0
0
0
Kamepally
645
952
1115
904
6.18
0
0
0
0
0
1695
2367
3494
4092
3317
6.2
0
0
0
0
0
Tekupalli
35
29
50
38
0.26
45
50
20
38.3
0.42
1695
128
106
183
139
0.3
169
188
75
144
0.43
Yellandu
60
2
53
38.3
0.26
60
76
0
45.3
0.5
1695
220
7
194
141
0.3
225
285
0
170
0.51
Gundala
0
53
120
57.7
0.39
4
0
0
1.33
0.01
1695
0
0
0
0
0
15
0
0
5
0.01
Kothagudem
89
144
129
121
0.82
0
0
0
0
0
2000
327
529
474
443
0.8
0
0
0
0
0
Julurphad
425
341
270
345
2.36
0
0
0
0
0
1695
1560
1252
991
1268
2.4
0
0
0
0
0
63
Chandrugonda
296
214
295
268
1.83
0
0
0
0
0
1695
1086
785
1082
984
1.8
0
0
0
0
Enkoor
640
737
836
738
5.04
0
0
0
0
0
1695
2349
2705
3068
2707
5
0
0
0
0
0 0
Palvancha
0
0
0
0
0
105
128
120
118
1.3
1695
0
0
0
0
0
105
128
120
117.7
0.35
Dhammapet
0
0
0
0
0
59
55
0
38
0.42
1750
0
0
0
0
0
221
206
0
142.3
0.42
Ashwaraopet
0
0
0
0
0
59
63
15
45.7
0.51
1750
0
0
0
0
0
221
236
56
171.1
0.51
Mulkalpally
0
0
0
0
0
58
65
15
46
0.51
1750
0
0
0
0
0
218
244
56
172.9
0.51
Burghampad
0
0
112
37.3
0.26
241
222
250
238
2.63
1695
0
0
0
0
0
904
833
938
891.5
2.65
Kukunoor
10
0
550
187
1.28
879
886
460
742
8.21
2220
37
0
2035
691
1.3
3296
3322
1725
2781
8.28
Velairphad
0
0
100
33.3
0.23
300
268
600
389
4.31
2220
0
0
0
0
0
1125
1005
2250
1460
4.34
Mangoor
30
0
100
43.3
0.3
206
224
230
220
2.44
2220
110
0
367
159
0.3
773
841
863
825.5
2.46
Aswapuram
0
0
20
6.67
0.05
106
116
130
117
1.3
2220
0
0
0
0
0
398
436
488
440.6
1.31
Pinapaka
175
124
30
110
0.75
1120
1219
380
906
10
2220
642
455
110
402
0.7
4200
4571
1425
3399
10.11
Bhadrachalam
0
0
0
0
0
2775
2675
2415
2622
29
2220
0
0
0
0
0
10406
10031
9056
9831
29.25
Kunavaram
0
0
0
0
0
306
275
803
461
5.11
2220
0
0
0
0
0
1148
1032
3013
1731
5.15
V.r.puram
0
0
0
0
0
437
426
550
471
5.21
2220
0
0
0
0
0
1639
1598
2063
1767
5.26
Chintoor
0
0
0
0
0
65
56
45
55.3
0.61
2220
0
0
0
0
0
244
210
169
207.7
0.62
Charla
0
15
0
5
0.03
854
865
815
845
9.35
2220
0
0
0
0
0
3203
3244
3057
3168
9.43
Dummugudem
0
0
0
0
0
481
462
247
397
4.39
2000
0
0
0
0
0
1804
1733
926
1488
4.43
Venkatapuram
0
0
0
0
0
565
528
480
524
5.8
2000
0
0
0
0
0
2119
1980
1800
1966
5.85
991
976
968
2.88
Wazeed
0
0
0
0
0
250
264
260
258
2.86
2220
0
0
0
0
0
938
total
14057
14415
15518
14663
100.21
9577
9487
8035
9033
100
2220
51593
52907
56955
53818
100
35629
35294 29892 33605
64
100
ANNEXURE4 CHILLIES AREA AND PRODUCTION IN WARANGAL %OF TOTAL PRODUCTION average of % 2001-02 mandal mahabubabad dornakal kesamudram kuravi nekkonda gudur narsampet chennaraopet duggondI nallabelli khanapur hasanparthi sangem wardhannepet parvathagiri mulug venkatapur ghanpur(mulug) tadvai eturunagaram mangapet lingalaghanapur narmetta maddur cherial bachannapet jangaon
area 207.8 1240 344.2 556.2 442.9 125.9 347.4 479.6 802.7 366.3 11.5 125.9 288.6 159.5 215.2 539 577.7 1286 8.4 811.9 904.7 153.3 532.1 107 166.9 97.6 79.8
2002-03 yield 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
Prodn. 415.6 2479 688.4 1112.4 885.8 251.8 694.8 959.2 1605 732.6 23 251.8 577.2 319 430.4 1078 1155.4 2571 16.8 1623.8 1809.4 310.6 1064.2 214.2 333.8 195.2 159.6
area 116.6 695.4 193.1 312.1 248.5 70.7 194.9 269.1 450.3 205.5 6.5 70.7 161.9 89.5 120.7 302.4 324.1 721 4.7 455.5 507.5 87.1 298.5 60.1 93.6 54.8 44.7
yield 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
2003-04 Prodn. 291.5 1738.5 482.8 780.3 821.3 176.8 487.3 672.8 1125.8 513.8 16.3 178.8 404.8 223.8 301.8 756 810.3 1803 11.8 1138.8 1288.8 217.8 746.3 150.3 234 137 111.8
area 198 1181 328 530 422 120 331 457 764.8 349 11 120 275 152 205 513.6 550.4 1225 8 773.6 882 148 507 102 159 93 76
yield 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
Prodn. 594 3543 981 1590 1266 360 998 1371 2294 1047 33 360 825 456 615 1541 1651 3674 24 2321 2588 444 1521 306 477 279 228
% of the area 2001200202 03 1.16 1.16 6.91 6.91 1.92 1.92 3.10 3.10 2.47 2.47 0.70 0.70 1.94 1.94 2.68 2.68 4.48 4.48 2.04 2.04 0.06 0.06 0.70 0.70 1.61 1.61 0.89 0.89 1.20 1.20 3.01 3.01 3.22 3.22 7.17 7.17 0.05 0.05 4.53 4.53 5.05 5.05 0.86 0.87 2.97 2.97 0.60 0.60 0.93 0.93 0.54 0.54 0.45 0.44
200304 1.16 6.90 1.92 3.10 2.47 0.70 1.94 2.67 4.47 2.04 0.06 0.70 1.61 0.89 1.20 3.00 3.22 7.16 0.05 4.52 5.16 0.87 2.96 0.60 0.93 0.54 0.44
2001-02 1.15 6.87 1.91 3.08 2.46 0.70 1.93 2.66 4.45 2.03 0.06 0.70 1.60 0.88 1.19 2.99 3.20 7.13 0.05 4.50 5.02 0.86 2.95 0.59 0.93 0.54 0.44
2002-03 1.15 6.88 1.91 3.09 3.25 0.70 1.93 2.66 4.45 2.03 0.06 0.71 1.60 0.89 1.19 2.99 3.21 7.13 0.05 4.51 5.10 0.86 2.95 0.59 0.93 0.54 0.44
2003-04 1.16 6.91 1.91 3.10 2.47 0.70 1.95 2.67 4.47 2.04 0.06 0.70 1.61 0.89 1.20 3.00 3.22 7.17 0.05 4.53 5.05 0.87 2.97 0.60 0.93 0.54 0.44
area 1.16 6.91 1.92 3.10 2.47 0.70 1.94 2.67 4.48 2.04 0.06 0.70 1.61 0.89 1.20 3.01 3.22 7.17 0.05 4.53 5.08 0.86 2.97 0.60 0.93 0.54 0.44
prod 1.15 6.89 1.91 3.09 2.73 0.70 1.93 2.67 4.46 2.04 0.06 0.70 1.60 0.89 1.20 3.00 3.21 7.14 0.05 4.51 5.05 0.86 2.96 0.60 0.93 0.54 0.44
65
thorrur narsimhulapet nellikudur rayaparti maripeda kodakandia devaruppula dharmasagar raghunathapalli stn ghanpur zaffergadh palakurti atmakur parkal shayampet regonda chityal mogullapalli bhupalpalli TOTAL
194.2 269.1 193.5 89.9 419.8 86.7 84 201.5 243.5 172.1 408.3 165.8 591.9 925.7 675.9 1002 484.9 327.5 414.2 17928
2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2
388.4 538.2 387 179.8 839.6 173.4 168 403 487 344.2 816.6 331.6 1183.8 1851.4 1351.8 2004.6 969.8 855 828.4 36060
108.9 151 108.6 50.5 235.5 48.6 47.1 113 136.6 96.6 229 93 332.1 519 379.2 562.3 272 183.7 232.4 10059
2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5 2.5
272.3 377.5 271.5 126.3 588.8 121.5 117.8 282.5 341.5 241.5 572.5 232.5 830.3 1298.3 848 1405.8 680 459.3 581 25271
185 256.4 184.4 85.7 400 82.6 80 192 232 164 389 158 564 882 644 955 462 312 394.7 17104
3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3
555 789.2 553.2 257.1 1200 247.8 240 576 696 492 1167 474 1692 2646 1932 2865 1386 938 1184 51278
1.08 1.50 1.08 0.50 2.34 0.48 0.47 1.12 1.36 0.96 2.28 0.92 3.30 5.16 3.77 5.59 2.70 1.83 2.31 100
1.08 1.50 1.08 0.50 2.34 0.48 0.47 1.12 1.36 0.96 2.28 0.92 3.30 5.16 3.77 5.59 2.70 1.83 2.31 100
1.08 1.50 1.08 0.50 2.34 0.48 0.47 1.12 1.36 0.96 2.27 0.92 3.30 5.16 3.77 5.58 2.70 1.82 2.31 100
1.08 1.49 1.07 0.50 2.33 0.48 0.47 1.12 1.35 0.95 2.26 0.92 3.28 5.13 3.75 5.56 2.69 2.37 2.30 100
1.08 1.49 1.07 0.50 2.33 0.48 0.47 1.12 1.35 0.96 2.27 0.92 3.29 5.14 3.36 5.56 2.69 1.82 2.30 100
1.08 1.54 1.08 0.50 2.34 0.48 0.47 1.12 1.36 0.96 2.28 0.92 3.30 5.16 3.77 5.59 2.70 1.83 2.31 100
1.08 1.50 1.08 0.50 2.34 0.48 0.47 1.12 1.36 0.96 2.28 0.92 3.30 5.16 3.77 5.59 2.70 1.83 2.31 100
1.08 1.51 1.08 0.50 2.33 0.48 0.47 1.12 1.35 0.96 2.27 0.92 3.29 5.14 3.62 5.57 2.69 2.01 2.30 100
66
ANNEXURE 5 COST OF CULTIVATION OF CHILLIES COST OF CULTIVATION OF HYBRID CHILLIES PER ACRE S.no
cost in Rs/unit
total cost
ploughing
cpd
100
2
1
200
c
harrowing / leveling bed preparation
cpd men
100 60
2 1
1 2
200 120
2 3 4 5 6 7 8
Fym application sowing in beds covering with thrash irrigations weedings fertilizers plant protection chemicals uprooting for transplanting
cartloads women women+thrash women women
200 30
1 1
0.5 3
30 30
3 2
3 3
30
1
3
100 90 110 270 180 100 150 90
a b
d
women
frequency
no of units
particulars
1
men no.
women no.
Operations nursery preparation
Total cost of nursery
1610
costs incurred in main field preparation
1
Operations land preparation summer ploughing leveling/harrowing collection of thrash ploughing
particulars tractor cultivator women cpd
men no.
women no.
cost in Rs/unit
3
frequency 700 350 30 200
1 1 1 2
no of units
total cost 1 1 1 1
700 350 30 400
67
2 3 4 5 6
7 8 9 10 11 12
13 14 15 16
17 18 19 20
23 24
transplanting cost of seed FYM applied fertilizer application fertizers applied DAP/14:14:14/17:17:17 UREA+POTASH AMMONIA+POTASH CALCIUM MICRO NUTRIENTS plant protection application plant protection chemicals used intercultivation weedings irrigations harvesting TOTAL COST OF PRODUCTION cost of production per quintal yieldsin kgs Drying9loss in weight (40-50%) Sorting(12.5% loss) bagging /filling in bags overall COST OF PRODUCTION COST PER KG PRODUCED transportation loading unloading weighment cost after marketing commission price per kg Avg. selling price Cost incurred till final selling profit cost beifit ratio
women+men packets quintals women
4
15
20 195 400 30
2
1
1 10 2
9
AROUND
women+men cpd women men women
men women per bag
1
2
4500
30+60 AROUND
10 1 190
2 6
per bag per bag per bag per bag
540 1950 800 540
14 200 30 60 30
4 3 10 1
1900 60 30 5
1 2 3 58
10 2 2 1
58 58 58 58
5% 2700
1
1680 5000 800 900 600 5700 26100 1373.684 240 540 290.00 27170.00 28.1172 580 116 116 58 28040.00 2565 29.6312 51300 30605.00 20695.00 1-1.89
68
ANNEXURE 6
COST OF CULTIVATION OF ALTERNATE CROPS Cost of production of cotton
Operations land preparation summer ploughing leveling/harrowing collection of thrash ploughing sowing of seed cost of seed FYM applied fertilizer application fertizers applied DAP/14:14:14/17:17:17/28:28:28 UREA+POTASH AMMONIA+POTASH CALCIUM MICRO NUTRIENTS plant protection application plant protection chemicals used intercultivation weedings irrigations harvesting/pickings yieldsin kgs bagging /filling in bags TOTAL COST OF PRODUCTION cost per quintal COST PER KG PRODUCED
men no.
particulars tractor CPD women cpd CPD+MEN+WOMEN
women no.
cost in Rs/unit
3 1
2
quintals women
5
2
frequency
700 150 30 150 200+60+30 550 400 30
1 2 1 1 1
no of units
total cost 1 1 1 1 1 2
9
AROUND
women+men cpd women men women per each time
1
2
10 1 10 2
700 300 90 150 370 550 800 540
3000
30+60 AROUND
12 150 30 60 30 1000 120
4 3 8 5 1 5
2
780 4500 1200 900 480 1500 600 16460 1028.75 10.29
69
transportation loading unloading weighment price per quintal price per kg Avg. selling price COMMISSION Cost incurred till final selling profit cost beifit ratio
per bag per bag per bag per bag
10 2 2 1
20 20 20 20
200 40 40 20 1047.50 10.48 26000 1300 16760 9240 0.55
2600 5%
Cost of cultivation of Red gram S.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Operations summer deep ploughing ploughing/harrowing cost of the seed broadcasting of seed sowing of the seed intercultivation weeding fertilizer application fertilizer applied pesticide application pesticide applied harvesting threshing/cleaning yield transportation costs total cost of cultivation market price gross returns net returns profit cost benefit ratio
particulars TP CPD Per Kg
men no.
women no.
cpd+women cpd women women
cost in Rs/unit 700 100 20 2
men+women
1
2
women men+women per acre per quintal
2 3
10 10
per quintal
no of units
total cost 1 2 7
700 400 140
1 1
160 100 300 60 700 120 500 420 480
30
7
1500
7
210 4290 10500 6210 1.45
100+30 100 30 30
10 2
frequency 1 2 1 1 1 1
60+30 30 100+30 7 Qtls
70
Cost of cultivation of Black gram
S.no 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19
Operations summer deep ploughing ploughing/harrowing cost of the seed broadcasting of seed sowing of the seed intercultivation weeding fertilizer application fertilizer applied pesticide application pesticide applied harvesting threshing/cleaning yield transportation costs total cost of cultivation market price gross returns net returns profit cost benefit ratio
particulars TP CPD Per Kg
men no.
women no.
cpd+women cpd women women
2
1
2
women men+women per acre per quintal
2 3
10 10
total cost
frequency 1 2 1
no of units 1 2 7
1 1 1
1 1
160 100 300 60 700 120 500 420 480
30
4
1400
4
120 4200 5600 1400 0.33
100+30 100 30 30
10 2
men+women
per quintal
cost in Rs/unit 700 100 20
60+30 30 100+30 4 Qtls
700 400 140
71
Annexure 7
Procurement centre summary of khammam mandal Nelakondapalli Mudigonda
Distance from procurement centre 16 17
Khammam(u)
0
Kusumanchi
25
Khammam®
311.67 978
% of avg. 2.13 6.68
1663.33
11.37
567
3.87
966
6.6
1503
10.27
5
Tirumalaipalem
22
Madhira
60
Bonakal
45
Yerrupalem
44
Chintakani
26
Konijerla
22
Wyra
19
total
Average area in acres
Avg production in tonnes 1144.26
% of total production 2.126
varieties
tejaswani,enganapadu,
3589.24
6.669
6104.03
11.34
2081.35
3.867
3545.71
6.588
5517.59
10.25
2706.01
5.028
tejaswani, enginapadu,g4, Non seed teja tejaswani, enginapadu,LR1, Non seed teja
tejaswani,enganapadu, teja non seed tejaswani, enginapadu,LR1, Non seed teja tejaswani, enginapadu,jwala Non seed teja tejaswani, enginapadu,LR1, Non seed teja
737.33
5.04
860.33
5.88
3151.77
4.063
tejaswani, enginapadu, Non seed teja
4.07
2186.64
4.429
tejaswani, enginapadu, Non seed teja
4.44
2383.53
3.417
tejaswani, enginapadu, Non seed teja
3.42
1838.76
3.417
tejaswani, enginapadu, Non seed teja
1.56
836.76
1.555
tejaswani, enginapadu, Non seed teja
65.33
28981.68
62.749
595.67 649.33 501 228 9560.66
72
Procurement centre summary of Bhadrachalam Mandal
Burghampad Kukunoor Velairphad Bhadrachalam
Distance from procurement centre in kms 5 50 55 0
Avg % avg production production varieties 2003 241 879 300 2775
Kunavaram
50
306
V.r.puram
55
437
40 19 90 110
854 481 565 250 7088
Charla Dummugudem Venkatapuram Wazeed total
2002 222 886 268
2001 average 250 237.67 460 741.67 600 389.33
% 2.63 8.21 4.31
2675
2415 2621.67
29.02
275
803
461.33
5.11
426 865 462 528 264 6871
550 815 247 480 260 6880
471 844.67 396.67 524.33 258 6946
5.21 9.35 4.39 5.8 2.86 77
891.5 2781.04 1460 9831.01
2.65 8.28 4.34 29.25
1730.71
5.15
1766.52
5.26
3167.99 1487.71 1966.48 968.02 26050.98
9.43 4.43 5.85 2.88 77.52
tejaswani,enganapadu, local varieties tejaswani,enganapadu, local varieties wonder hot,tejaswani,enganapadu, local tejaswani,enganapadu,wonder hot, roshini,local. tejaswani,roshini,enganapadu, local varieties tejaswani,roshini,enganapadu, local varieties tejaswani,enganapadu, local varieties tejaswani,enganapadu, local varieties wonder hot,tejaswani,enganapadu, local wonder hot,tejaswani,enganapadu, local
73
Procurement centre summary of warangal mandal
distance from centre
area%
Prodn. %
varieties
ghanpur(mulug)
50
7.17
7.14
dornakal
95
6.91
6.89
115
5.08
5.05
regonda
38
5.59
5.57
parkal
31
5.16
5.14
geesugonda
12
3.41
3.39
duggondi
25
4.48
4.46
100
4.53
4.51
shyampeta
25
3.77
3.62
atmakur
20
3.3
3.29
mulug
50
3.01
3
venkatapur nallaballi
60 30
3.22 2.04
3.21 2.04
hanmakonda
5
3.42
3.36
mogullapalli
45
2.18
2.01
bhupalapalli
60
2.31
2.3
nekkonda narsempeta total%
75 30
2.47 1.94 69.99
2.73 1.93 69.64
mangapeta
eturinagaram
wonderhot,ravindra ,saral-1, redtop/ sun, gangotri wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,indam, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,indam-5,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,beeju seetal,gangotri,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,beeju seetal,saral-1, redtop/ sun wonderhot,gangotri ,ankur,ganga 5,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ravindra ,ankur,semense,saral-1, redtop/ sun wonderhot,ankur,semense,saral-1, redtop/ sun
74
75
