Study no. 118 Publication No. 165 CONSOLIDATED REPORT

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1 Study no. 118 Publication No. 165 CONSOLIDATED REPORT ON Evaluation of the Impact on Production and Export of Central Sector Scheme: Integrated Programme for Development of Spices Implemented during Eighth Plan Smt. Bharti Sharma 2002 Agro-Economic Research Centre University of Allahabad Allahabad (India)

2 2 PREFACE Globally spice crops play an important role since time immemorial for the qualitative improvement of food, medicines, cosmetics etc. Most spice crops come under the category of dry crops. Broadly spice crops are classified into six groups. Pepper, red chilli, ginger, and garlic are the important spice crops grown in the world. India is said to be the Home of Spices. The prevailing agro-climatic conditions proved to be the biggest asset for growing large number of spice crops in India. With percent of area share of the world India contributes only percent towards the global production of spices. India has got tremendous potentials for enhancing spice crops production by making efforts for equating its production share with the area share in the global context. Realizing the importance of spice crops and its tremendous potentials, Government Of India made deliberate efforts for the all round development of spice crops from time to time in a planned manner since During the Eighth Five Year Plan under the Central Sector Scheme rupees 1250 million have been allotted for the development of spice crops by launching a special programme namely Integrated Programme for the Development of Spices (IPDS) at the national level. In spite of sufficient efforts made for the development of spice crops the result remained less than the desired. With this thought in mind at the request of the Directorate of Horticulture, the Ministry of Agriculture proposed five Agro-Economic Research Centers to conduct a study titled,

3 3 Evaluation of the Impact on Production and Export of Central Sector Scheme Integrated Programme for Development of Spices. The main objectives of the study are to evaluate the status of spice cultivation, the effectiveness of mode of implementation adopted, to study the impact of the programme and to furnish rational guidelines for betterment of the scheme. This study has been carried out on an all India basis. The five selected states under the study for evaluating the impact of IPDS for the selected spice crops are of Kerala for pepper, turmeric and ginger, Andhra Pradesh for turmeric and chilli, Maharastra for turmeric, chilli and ginger, Madhya Pradesh and Uttar Pradesh for coriander, chilli and ginger. AER Center, Allahabad has been designated as the Coordinating Center. Being the Coordinating Center the responsibility of consolidating all the five reports of this study also lies with this Center. In order to measure the impact of the IPDS on the farms of selected beneficiary spice growers eight parameters have been considered. The parameters of area under the selected spice crops, its production, yield rate, marketed surplus and cost of cultivation have been termed as the physical parameters for measuring the physical growth of the crops. The parameters of prices gross income and net income have been termed as the commercial parameters for measuring the commercial growth of the selected spice crops. In this Consolidated Report it has been observed in general that there is in general positive impact of IPDS as there is per cent area growth and per cent production growth on the farms of selected beneficiary spice growers at the aggregate level. In particular for the selected spice crops in the selected states as an impact of IPDS, pepper gained better commercially. Coriander has better physical growth than commercial in Madhya Pradesh but in Uttar Pradesh it is just the opposite. Turmeric experienced more commercial growth rather

4 4 than physical in all the three selected states. In chilli, Andhra Pradesh, Maharastra and Uttar Pradesh experienced better commercial growth where as in Madhya Pradesh it is just the opposite. Ginger spice experienced better commercial growth in Kerala and Maharastra but in Uttar Pradesh the case is just the opposite where as in Madhya Pradesh as an impact of IPDS ginger experienced negative growth both in physical and commercial terms. I hope this Consolidated study will serve the purpose of being a meaningful background or reference material to all the concerned researchers and officials. If the policy makers consider the conclusions drawn for the selected spice crops in the selected states before making any further development programmes for spices, it may be expected that the programmes will be more realistic and result oriented. This Consolidated Report could not have been furnished without the genuine efforts of all the five Agro- Economic Research Centers including ours. This Consolidated Report has been planned and drafted by Mrs. Bharti Sharma, Research Associate. I would like to acknowledge her efforts especially as she without any participation in the original report, singlehandedly managed to furnish this Consolidated Report. All comments and suggestions for the study will be welcomed and thankfully acknowledged. Agro-Economic Research Center University of Allahabad Allahabad. (P.C.Sharma) Hon.Director

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6 6 ACKNOWLEDGEMENTS This consolidated report will remain incomplete till the time I do not extend my gratitude to my Director Dr. P.C. Sharma for the faith and confidence he has shown by allotting me the project. I would like to extend respectful special thanks to my colleague, Shri K.N.Thapliyal for furnishing necessary information and having timely discussions and for which, I am obliged to him for providing valuable guidance as and when required. Last but not the least my thanks to Mrs. Nirupama Nigam who did the computer operation efficiently. Bharti Sharma

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8 8 CREDIT Project Planning & Drafting Computer Operations Secretarial Services Xeroxing Mrs. Bharti Sharma Mrs. Nirupama Nigam Mrs. M.R. Kesherwani Mr. H.C. Upadhyay

9 9 CONTENTS Pages CHAPTER-I Introduction Place of India in the World Development Programme of Spice Crops in India Integrated Programme for the Development of Spice Crops (IPDS) in India Strategies Adopted for IPDS Spice Crops Proposed under IPDS Components Adopted in General under IPDS Components Proposed in Particular for the Spice Crops under IPDS Important Spice Crops of India during Eighth Five Year Plan in India Area Coverage Production Productivity Price Behaviour Export Performance Growth of Important Spice Crops CHAPTER II Need, Objectives and Methodology Need of the Study Objectives of the Study

10 10 Methodology of the study Selected States under the Study Selected Spice Crops, Districts, Blocks & Villages under the Study Selected Beneficiary Spice Growers in the Five Selected States CHAPTER III Profile of Integrated Programme for the Development of Spices (IPDS) Percentage Share of the Total Spice Crops Area in the Cropping Structure in the Five Selected States Relative Status of Area Coverage of the Selected Spice Crops to the Total Spice Crops in the Five Selected States Status of Area Coverage and Production of the Selected Spice Crops in the Selected States Growth of Area Coverage and Production of the Selected Spice Crops in the Selected States Implementation of IPDS in the Selected States Implementation of IPDS in the Selected Districts Adoption of the Cultural Practices by the Selected Beneficiary Spice Growers under IPDS CHAPTER-IV Socio-Economic Profile of the Selected Beneficiary Spice Growers The Selected Beneficiary Pepper Growers The Selected Beneficiary Coriander Growers The Selected Beneficiary Turmeric Growers The Selected Beneficiary Chilli Growers The Selected beneficiary Ginger Growers CHAPTER-V

11 11 Impact of Integrated Programme for the Development of Spice Crops (IPDS) On Selected Beneficiary Pepper Growers On Selected Beneficiary Coriander Growers On Selected Beneficiary Turmeric Growers On Selected Beneficiary Chilli Growers On Selected Beneficiary Ginger Growers CHAPTER-VI Summary & Conclusion

12 12 LIST OF TABLES Table No. Title of Tables CHAPTER I 1-1 Area Under Major Spice Crops in India and the World Production of Major Spice Crops in India and the World Financial Outlay under Central Sector Scheme for Spice Crops Development 7 during Fourth to Eighth Five Year Plans 1-4 Physical and Financial Outlay for Different Components under IPDS in India 10 Page No. 1-5 Physical and Financial Components Adopted of the Proposed Spice Crops Under IPDS in India I-6 Area under Important Spice Crops during to in India 15 I-7 Production of Important Spice Crops during to in India Productivity of Important Spice Crops during to in India Prices of Important Spice Crops during to in India Percent of Total Spices Exported in Relation to their Production during to in India 1-11 Exports of Important Spice Crops during to in India Growth of Area, Production, Yield, Prices and Export of Important Spice Crops in India over the Period ( over ) CHAPTER II II-1 Selected States and Research Centre Engaged in the Study 25 II-2 Size-Groups of Sample Beneficiary Spice Growers 27 II-3 II-4 II-5 Percentage Share of Area under Spice Crops in the Selected States and Other States in India Selected Districts, Blocks and Villages in the Five Selected States for the Selected Spice Crops Selected Beneficiary Spice Growers According to Different Size Groups of Holding for the Selected Spice Crops CHAPTER-III III-1 Percentage Share of Total Crops Area in the Cropping Structure in the Five

13 13 III-2 III-3 III-4 III-5 III-6 III-7 III-8 III-9 Selected States Relative Status of Area Coverage of the Selected Spice Crops to the Total Spice Crops in the Five Selected States Area Coverage Share of the Selected Spice Crops in the Five Selected States during to Production Share of the Selected Spice Crops in the Five Selected States during to Growth of Area and Production of the Selected Spice Crops in the Five Selected States during to Distribution of Financial Outlay under IPDS for the Selected and Unselected Spice Crops in the Five Selected States and in India Number of Components Covered (NCC) Financial Outlay Received (FOLRs) and Percentage Share of Outlay Received (PSORe) under IPDS of the Selected Spice Crops in the Selected Districts Cultural Practices Adopted by the Selected Spice Growers for the Selected Spice Crops in the Five Selected States under IPDS Frequency of Adoption of Cultural Practices under IPDS by the Selected Beneficiary Spice Growers in the Five Selected States CHAPTER-IV IV-1 Area under Selected Spice Crops in the Five Selected States during IV-2 Production of Selected Spice Crops in the Five Selected States during IV-3 IV-4 IV-5 IV-6 IV-7 IV-8 IV-9 IV-10 IV-11 Population Details of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Average Size of Family of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Number of Literate Heads of the Family of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Number of Workers per household of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Owned Area, Cultivated Area and Irrigated Area of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Farm Assets of Livestock of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Farm Assets of Machinery and Implements of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Net Income of the Selected Beneficiary Spice Growers in the Five Selected States during the Reference Period Gross Cropped Area (GCA), Total Spices Area (TSA) & Selected Spices Area (SSA) of the Selected Beneficiary Spice Growers in the Five Selected States CHAPTER-V V-1 Area under Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States

14 14 V-2 Production of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-3 Yield of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-4 Marketed Disposal of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-5 Cost of Cultivation of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-6 Price of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-7 Gross Income of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-8 Net Income of Selected Spice Crops during Pre & Post IPDS Implementation Period in the Five Selected States V-9 Net Changes in the Development indicators of pepper cultivation over the period of IPDS Adoption by the Selected Beneficiary Pepper Growers V-10 Net Changes in the Development indicators of Coriander cultivation over the period of IPDS Adoption by the Selected Beneficiary Coriander Growers V-11 Net Changes in the Development indicators of Turmeric cultivation over the period of IPDS Adoption by the Selected Beneficiary Turmeric Growers V-12 Net Changes in the Development indicators of Chilli cultivation over the period of IPDS Adoption by the Selected Beneficiary Chilli Growers V-13 Net Changes in the Development indicators of Ginger cultivation over the period of IPDS Adoption by the Selected Beneficiary Ginger Growers

15 15 CHAPTER-I Introduction For all living beings including human being primary pre-requisite for existence is food. Level of food security is directly related with agricultural production. Due to planned and dedicated human efforts, globally agriculture has developed many folds both extensively as well as intensively inspite of its sufficient dependence on nature. After attaining quantitative food security, human beings initiated making efforts to improve the quality of their food for both taste as well as health requirements. Globally spice crops play an important role since time immemorial for the qualitative improvement of food. Spice crops are aromatic vegetable products usually dried for qualitative effective uses in food, medicines etc. Most spice crops come under the category of dry crops. Spice crops are classified into six groups. They are Rhizomes and Root spice crops, Bark spice crops, Leaf spice crops, Flower spice crops, Fruit spice crops and Seed spice crops. Spice crops are also classified into Major spice crops, Minor spice crops and Tree Spice crops. The Major spice crops are cardamom, pepper, ginger, turmeric and chilli. The Minor spice crops are coriander, fennel, cumin, fenugreek, garlic, celery, aniseed, bishops, weed, paraley, caraway, dill, mint, mustard, saffaron and vanilla. The tree spice crops are cinnamon, caccisa, tejpat, kokam, pomegranate, nutmeg, clove and pitmento. Globally, on a large scale commercially grown spice crops are pepper redchilli, ginger, turmeric, garlic mustard seed, poppy seed, aniseed, badian, fennel, clove, nutmeg, cardamom, cinnamon and vanilla etc.

16 16 For spice cultivation, tropical, sub-tropical and temperate climatic conditions are suitable. Brazil, Srilanka, China (MainLand), India, Indonasia, Madagaskar, Malaysia, Thailand and Vietnam are the leading countries for the production of spice crops. India is known to be the land of spice crops since many centuries. The references of the uses of Indian spice crops is assessed from Vedas (6000 B.C) by Manu, by the Babylonians and Assyrians (around 3000 B.C) and in the Old Testament of the Bible (1000 B.C). As per the Bureau of Indian Standards 63 types of spice crops are grown in India. Others proclaim that there are 97 varieties of spice crops which are grown in India but only 27 spice crops excluding herbal spice crops are grown commercially. The prevailing geographical and climatic conditions prove to be the biggest asset for growing, large number of spice crops in India. Today India is the largest producer, consumer and exporter of spice crops in the world. Place of India in the world Pepper, red chilli, ginger and garlic are the important spice crops grown in the world in respect of area and production. Place of India in the world in growing pepper, red chilli, ginger and garlic has been given in the Tables-I-1 and Tables I-2 respectively. India occupies per cent share in the world while considering the area coverage of the four mentioned important spice crops altogether. Maximum share of area coverage is under red chilli (59.14 per cent) in India of the world which is followed by ginger (58.16 per cent). In growing pepper India occupies per cent share of the area coverage of the world, garlic among the four crops given in the Table I-1 occupies only per cent share of area coverage of the world which is a nominal share as compared to red chilli, ginger and pepper s per cent share of the area coverage (Table I-1). Table I-1 Area under Major Spice crops in India and the World

17 17 (In hectares) Place 1994 Pepper Chilli Ginger Garlic Total India World India as per cent of the world With per cent area coverage share of the world for producing red chilli, ginger, pepper and garlic India occupies only per cent share in their global production as has been given in the Table I-2. While looking individually to the production of pepper, red chilli, ginger and garlic in India as a percentage share of the worlds production of these crops, it has been found that even individually all the four crops, lag much behind if they are compared to their respective percentage share of the area coverage of the world. The fact of more percentage share of world s area coverage for producing main spice crops in India in comparison to the percentage share of production of the same spice crops globally, proves that the yield rate of red chilli, ginger, pepper and garlic will be alarmingly low if compared to the world s yield rates of the same crops. With this finding of unbalanced rate of area coverage and production s per cent share of India in the world it is evident that in India there still remains ample scope of inducing better technology for growing spice crops for its better prospect, Table I-2.

18 18 Table I-2 Production of Major Spice Crops in India and the World (In tonnes) Place 1994 Pepper Chilli Ginger Garlic Total India World India as per cent of the world Development Programmes of Spice Crops in India Realizing the importance of spice crops and its tremendous potentials Indian Government made deliberate efforts for the development of spice crops from time to time in a planned manner since 1949 as per the available record in India. The major decisions taken since 1949 till date is being given in brief as under for the development of spice crops in India. In the year 1949, the first pepper research scheme was started by the then Madras Government at Panniyur. In the year 1951, Cardamom research was initiated at Mudigere and Pampadumpara. In the year 1951, Planning Commission of the Government of India asked the Ministry of Food and Agriculture to take steps for Research and Development in spice crops and cashew.

19 19 In the year 1953, October the spice crops inquiry committee submitted its report. For the implementation of the recommendation of the submitted report, responsibility was entrusted to the Indian Council of Agricultural Research. In the year 1961, Indian Central Spice crops and Cashewnut Committee was registered. In the year 1962, a Central Spice and Cashewnut Committee was constituted to assist the Indian Council of Agricultural Research for advancing in Planning and Coordinating the implementation of the recommendations of the spice enquiry Committee. In the year 1970, the Central Plantations Crops Research Institute (CPCRI) Kasargode, Kerala was started for palms, coca, cashew and spice crops. In the year 1971, All India Coordinated Spice and Cashewnut Improvement Project was set up at CPCRI, Kasargode. It was a major step in the direction for the improvement of spice crops. In the year 1974, the Cardamom Research Centre (CRC) which was established at Appangala, Karnataka by the then Mysore Government which was taken over by the CPCRI Kasangode. In the year 1975, November, during the Fifth Five-Year Plan, a Regional Research Station of the CPCRI was established by the Indian Council of Agricultural Research at Calicut. In the year 1986, the Regional Research Station at Calicut was upgraded as a National Research Centre for spice crops (NRCS) by merging Cardamom Research Centre, Appangala. All India Coordinated Research Project on Spice

20 20 crops and cashewnut improvement was also separated. The AICRP on spice crops was shifted to NRCS, Calicut. Presently there are twenty Research Centres spread over sixteen States and AICRP on spice crops. In the year 1995, the National Research Centres of spice crops was upgraded and renamed as Indian Institute of spice crops Research situated at Calicut. The Agricultural Universities at Tamilnadu, Kerala, Andhra Pradesh, Karnataka and Orissa also contributed through their research activities and other activities for spice crops development. The State Government implemented various programmes for the development of spice crops through their Agriculture/ Horticulture departments. Many private agencies and Non Government Voluntary Organizations also play an important role for the spice crops development. Government of India started making efforts for the development of spice crops through central Sector Scheme. Since Forth Five Year Plan Government of India allotted a definite fund for the development of spice crops only. In the Fourth Five Year Plan 1.5 Million rupees was spent for the development of spice crops in India. The amount of rupees spent from Fourth Five Year Plan to Seventh Five Year Plan under the Central Sector Scheme have a fluctuating trend. In the Eighth Five Year Plan amount allotted for the development of spice crops under the Central Sector Scheme was Rs million proving it to be a very big amount (5108 per cent if compared to fourth plan outlay) amount if compared to all time high (24.00 million in the Seventh Five Year Plan) amount of rupees spent till Seventh Five Year Plan for the development of spice crops under the Central Sector Scheme (Table I-3)

21 21 Sl. No. Table I-3 Financial Outlay under Central Sector Scheme for Spice Crops Development during Fourth to Eighth Five Year Plans Five Year Plans Spent/ Allotted Outlay in million Rs. % change our the previous plan 1 Fourth Five Year Plan Spent Fifth Five Year Plan Spent Sixth Five Year Plan Spent Seventh Five Year Plan Spent Eighth Five Year Plan Allotted Integrated Programme for the Development of Spice crops (IPDS) in India During the Eighth Five Year Plan, a special programme under the Central Sector Scheme namely Integrated Programme for the Development of Spice crops (IPDS) has been initiated at National level. Strategies Adopted for the IPDS Programme: Strategies Adopted for the Integrated Programme for Development of Spice crops Programme are given as under: 1. Identification of Spice crops which have high production potential and export potential for development. 2. Production of quality planting materials on a large scale by adopting latest technology. 3. Import of seed material of improved varieties to increase production.

22 22 4. Rejuvenation of unproductive gardens by replanting and adopting scientific cultivation. 5. Encouraging farmers to adopt-improved cultivation methods. 6. Provision of irrigation facilities. 7. Use of plastics in agriculture for nurseries, mulches, production of clean spice crops etc. 8. Educate the farmers to adopt latest technology for harvesting, processing and storage. 9. Assist Government Agencies, Cooperatives and Voluntary Organizations to develop common facilities for quality improvement, product diversification, storage and marketing. 10. Impart training at different levels to agriculture/ horticulture officers on the latest technology to increase production and productivity, quality improvement and storage. 11. Collecting statistic on area, production, market arrivals, prices etc. within and outside country, their compilation and dissemination. Conduct studies on cost of production, price spread, domestic demand etc. Spice Crops Proposed under the IPDS Programme in India Spice crops proposed under the IPDS programme for their all round development are pepper, ginger, turmeric, chilli, coriander, cumin, garlic, fennel, fenugreek, celery, tamarind and tree spice crops. Components Adopted in General under the IPDS Programme in India The components adopted for the proposed spice crops under the IPDS programme has been given in the Table I- 4 with the details in both physical and financial terms for

23 23 the development of spice crops in general. While considering financial outlay among the eight decided components maximum financial outlay has been planned for the component of monitoring and implementation including infrastructural development which is of the tune of Rs. 556 Lakhs under the IPDS programme for the spice crops development. This is followed by the component of promotion of soil conservation measures with the allotment of Rs. 360 lakhs. Among the adopted components of the IPDS programme least emphasis is being given in financial terms (Rs lakhs) to the component of financial assistance for setting up of irrigation units. As per the details given for different components in general under the IPDS Programme from the limits of both physical and financial outlays it is distinctly clear that spice crops are the residue crops on the fields of Indian agriculture as irrigation as a separate component has been allotted only 0.28 per cent share of the total financial outlay under the programme. On the other hand for the infrastructure development and promotion of soil conservation measures component, jointly have been allotted the lion share of per cent of the total financial outlay made for the programme. This also proves that the spice crops are still in its infancy in India. The other important component in terms of allotted financial outlay under the IPDS programme is related to trade and commerce keeping in view the tremendous prospects of Indian spice crops on the foreign lands. Thus for the promotion of marketing (Rs. 90 lakhs) and setting up of farmers cooperative component (Rs. 100 lakhs), jointly has been allotted per cent outlay of the total financial outlay under the IPDS Programme. For improving the quality and quantity of Indian spice crops plant protection measures have been considered to be one of the important component with the allotment of rupees lakhs which formed the share of per cent of the total financial outlay under the IPDS Programme (Table I-4). Table I-4 Physical and Financial Outlay for Different Components under IPDS in India

24 24 Adopted Components under IPDS Outlay Per cent of total Physical Financial in Lakh Rs. Financial Outlay 1 Distribution of plant protection equipment (No. in 00) 2 Financial assistance for setting up of irrigation unit (No. of units) 3 Promotion of soil conservation measures (area in 00 hect.) 4 Promotion of marketing Transfer of technology (No. of campaigns/training classes in 00) 6 Estimation of cost of cultivation and production 7 Setting up of farmers cooperative for producing value added items (No.) 8 Monitoring and implementation including infrastructure development Total Components Adopted for the Proposed Spice Crops under the IPDS in India While analyzing the extent of consideration of components for the selected spice crops under the IPDS pepper, ginger, turmeric and chilli are the important crops nationally because these crops have been allotted per cent of the total financial outlay under the IPDS. Among these crops effects made both in physical terms and in financial terms it is maximum for pepper. As pepper crop under the IPDS is to make efforts for maximum number (eight) of components with maximum financial outlay (Rs lakhs) in its favour which is per cent of the total outlay made for an individual spice crops. Though chilli stand second under the IPDs programme with Rs lakhs outlay, which is only per cent share in the total outlay of the adopted crops lags much behind if compared to pepper. It confirms the fact that pepper has better potential

25 25 and prospects both nationally and internationally among the spice crops adopted in the IPDS. Both ginger and turmeric crops have more or less equal attention from the point of view of components to be considered (for ginger-5 and turmeric-4 components) and financial outlay given (for ginger Rs lakhs and turmeric Rs lakhs) but definitely ginger crop has a slight edge over the turmeric crop in both the terms i.e. number of components considered and financial outlay allotted. The minor seed spice crops also hold important place while financial outlay is taken as the parameter under the IPDS as 7.73 per cent of the total financial outlay has been allotted for the development of minor seed spice crops. Tree spice crops, garlic, saffaron, large cardamom, progeny gardens in the NE Region and tamarind crops all together has been allotted in all 7.45 per cent financial outlay of the total outlay under the IPDS. Table I-5.

26 26 Table I-5 Physical and Financial Components Adopted of the Proposed Spice Crops under IPDS in India Components for the Proposed Spice Crops under IPDS Physical Plan Outlay Financial in lakh Rs. % share of total Financial outlay Pepper 1. Production of planting materials-lakhs Rehabilitation of old pepper gardens ha. 3. Distribution of input kits-lakhs Plant protection against quick wilt desease- 000 ha. 5. Eradication of little leaf disease-lakh vines 6. Demonstration plots in farmers fields Demonstration of high production technology-ha 8. Area expansion-ha Sub Total Ginger 1. Production of nucleus seed materialtonnes Demonstration-cum-seed multiplication lpots Distribution of mini-kits Plant protection demonstration 00 ha Area expansion Sub Total Turmeric 1. Nucleus seed material production-tonnes Demonstration-cum-seed multiplication plots Area expansion programme- 00 ha Supply of polishing drums-units Sub Total Chilli 1. Production of nucleus seed materialtonnes 2. Demonstration-cum-seed multiplication plots

27 27 3. Plant protection demonstration plots ha 4. Distribution of mini-kits Area expansion 00 ha Production of paprika seeds-ha Demonstration plots of paprika Sub Total Tree Spice crops 1. Production of planting material Establishment of scion nursery centresunits Demonstration plots Sub Total Minor (seed) Spice crops 1. Production of nucleus seeds-tonnes Demonstration plots Distribution of minikits Sub Total Garlic 1. Production of seeds-tonnes Breeder and foundation seeds certified seeds 3. Field demonstration Distribution of mini-kits Sub Total Saffaron 1. Establishment of corn multiplication plots-ha. 2. Demonstration plots Sub Total Large Cardamom 1. Establishment of compact plantations 10 ha. Units Progeny Gardens in NE Region Establishment and maintenance of demonstration-cum-progeny gardens-units Tamarind 1. Production of planting material Grand Total Contd. Important Spice Crops of India during Eighth Five Year Plan ( to )

28 28 While considering the development of spice crops in India chilli, turmeric, ginger, pepper, coriander, garlic, cardamom small, cardamom large, cumin, fennel, and fenugreek spice crops have been considered. Area, production, yield, prices and export data for the years from to have been studied as a parameter for determining the level of development of the mentioned spice crops in India. 1 Area Coverage: In India the best-grown crop of spice crops is chilli by owning maximum area coverage ranging between per cent to per cent in the given six years (Table I-6). Coriander followed chilli by having area coverage in the range of per cent to per cent of the total spice crops area. Nearly in all the years cumin ranked third with the area coverage ranging between 8.29 per cent to per cent of India s spice crops area. In the fourth place ranked pepper and fifth place has been occupied by turmeric in all the years. Thus, from the area coverage point of view chilli, coriander, cumin, pepper and turmeric these five crops occupied between per cent to per cent area of the total spice crops area of India and thus obtained the ranking of most important spice crops in terms of area coverage in India (Table I 6) 2. Production From the production point of view among the mentioned spice crops of India chilli rank first by contributing in the range of per cent to per cent to the total India s spice crops production during the years of to In all India production of spice crops turmeric ranked second as it contributed to the nation s production of spice crops in the range of per cent to per cent during the given years. In the third, fourth and fifth place garlic, coriander and ginger are the respective spice crops in India from the production point of view. During the given six years from to towards the total production of spice crops chilli, turmeric, garlic, coriander and ginger

29 29 (five top spice crops in production) combinedly contributed in the range of per cent to per cent (Table I-7). 3. Productivity While looking to the yield rates of different spice crops during the different years in India garlic ranked at the top with the 4674 Kg/hect. yield in and with a slightly less yield rates during rest of the years. Among the spice crops turmeric ranked in the second place having the yield rate ranging between 3102 to 4767 Kg/hect. In different years from to ginger rank third among the spice crops in different years. Chilli, coriander and pepper ranked, fourth, fifth and sixth respectively in India among the different spice crops for their yield rates. Both the cardamoms with 239 and 125 Kg/hect. yield rates remain at the seventh and last place among the spice crops in India during in the given years (Table I-8) Table I-8 Productivity of Important Spice Crops during to in India (Kg/Hect.) Spice Crops Pepper Coriander Turmeric Chilli Ginger Garlic Cardamom small Cardamom large Source: Directorate of Economic & Statistic Ministry of Agriculture New Delhi

30 30 4. Price Behaviour Best price fetching spice crop in India presently is pepper with the price of 8375 Rs./Qtl in Pepper has an upward price trend since Turmeric, chilli and ginger spice crops have over lapping and fluctuating price trends as per the mentioned prices in the given six years in the Table I-9. Table I-9 Prices of Important Spice Crops during to in India (In Rs/Qtls) Spice Crops Pepper Turmeric Chilli Ginger Source: Directorate of Marketing and inspection, Ministry of Agriculture. 5. Export Performance In India per cent to per cent of its spice crops production has been exported during the years of to (Table I-10) Previously in India nearly 94 per cent of the spice production has been domestically consumed and barely five to six per cent exported. In the total export earnings of all the commodities from India, the share of spice crops is 1.12 per cent and in the total agricultural products it was six per cent during

31 31 Table I-10 Per cent of Total Spices Exported in Relation to their Production during to in India (In metric tonnes) Production/ex port Total Production Total Export % share exported Performance of spice crops export of India during the Eighth Five-Year Plan period is impressive. Among the exported spice crops as per the Table I-11, maximum share is being governed by the other spice crops in India which is ranging between per cent to per cent share in India s spice export during the years of to Chilli ranks second among the exporting spice crops of India with a fluctuating trend in absolute terms and also with a fluctuating rate in the share of spice exports of India. Excepting for the year , in rest of the years from to in India pepper remained in the third place while considering the percentage share in India s exports, which ranged between per cent to per cent. Ginger s export contribution to India s spice crops exports, remained in all the years in the fourth place excepting for when export of turmeric has per cent share i.e more than ginger s export share in the total exports. Turmeric excepting for in rest of the years contributed least to the total exports of India coupled with a fluctuating trend in the range of 9.80 per cent to per cent in the India s export share (Table I-11)

32 32 Table I-11 Exports of Important Spice Crops during to in India (In metric Tonnes) Years Chilli (25.60) (13.70) (19.00) (17.00) (27.70) (23.60) Turmeric (12.70) (15.40) (14.40) (18.30) (13.50) (6.80) Ginger (11.00) 8220 (6.70) (9.80) (7.20) (9.00) (13.00) Pepper (15.70) (19.30) (27.80) (24.20) (12.00) (21.80) Others (35.00) (45.00) (29.00) (33.00) (38.00) (32.00) Total (100.00) (100.00) (100.00) (100.00) (100.00) (100.00) Value of exports in crore Rs Source: Spice exports review , Spice Board. Note: Figures in parenthesis are the Percentages of the total. 6. Growth of Important Spice Crops in India Looking to the trends of area coverage, production, yield rates, prices and exports of important spice crops in India during the years from to it has been observed that on the basis of the available data, most of the important spice crops has an all round growth. At the national level production of all important spice crops has sufficiently better growth ( per cent) than the growth in area coverage ( per

33 33 cent) over the period. Fennugreek with maximum (96.06 per cent) production growth is followed by cumin ( per cent) while considering the individual spice crops production. Among the spice crops minimum growth of production has been observed in pepper ( per cent) over the period, (Table I-12). Table I-12 Growth of Area, Production, Yield, Prices and Export of Important Spice Crops in India over the Period ( over ) (In percentages) Sl. No Spice crops Area Production Yield Prices Exports 1 Chilli Turmeric Ginger Pepper Garlic N.A N.A 6 Cardamom-S N.A Cardamom- L N.A Coriander N.A N.A 9 Cumin N.A N.A N.A 10 Fennel N.A N.A N.A 11 Fenugreek N.A N.A N.A 12 Others N.A N.A N.A N.A Total N.A N.A Note: Table is based on the Table no. 6,7,8,9 & 11. Though at the aggregate level area of important spice crops in India earned growth of per cent over the period but pepper, cardamom large and cardamom small are the spice crops which have grown negatively of the tune of 2.51 per cent, per cent and 0.66 per cent respectively. Among rest of the spice crops with positive area growth cumin with per cent growth remained at the top turmeric with per cent growth remained at the bottom at all India level (Table I-12).

34 34 Productivity of all-important spice crops has grown positively over the period with the rate of per cent (cardamom small) to per cent (pepper). It is only pepper, which has single digit growth in its yield rate among the important spice crops of India. (Table I-12). Growth in prices of important spice crops varied widely in the range of per cent (pepper) to 6.9 per cent (turmeric) at all India level. For seven spice crops information is not available due to lack of statistical information per cent growth in prices for pepper over the period is the maximum rate of growth not for prices only, but under all the given heads (area, production, yield, prices and exports) for all the important spice crops at national level it is the maximum in the Table I-12. In the international market only cardamom small has negative growth of per cent and in rest all the spice crops exports have positive growth over the period in the range of per cent to per cent. At all India level, exports of spice crops ranked at the top with per cent positive growth which is followed by production and area coverage at the national level respectively. Pepper registered best growth of per cent among the crops for exports in particular at all India level. Thus, extremely high growth in prices and export of the pepper crop proves to be cause and effect for each other at national level because in pepper, area showed a negative growth and the production registered meager ( per cent). positive growth over the period at all India level. As the high growth of export of ginger ( per cent) also proves the fact that its due to good growth in its prices ( per cent) only and not because of production and its yield, as they all registered sufficiently low rate of growth over the period.

35 35 Cardamom large with ( per cent) growth in exports over the period can well be justified because of its production ( per cent) and yield rate ( per cent) only as its area has negative growth over the period (-0.66 per cent). Export growth of per cent in chilli at national level proves to be due to the fact of all the determinants given the Table I-12 of area, production, yield and prices but among them maximum contribution is attributed by its production s growth ( per cent) followed by its yield growth ( per cent). Turmeric with per cent growth in its export is more because of its growth in production followed by productivity and area performance, over the period (Table I- 12).

36 36 CHAPTER-II Need, Objectives and Methodology Need of the Study Spice crops have enough potentials nationally and internationally mainly for the requirements for food, medicines, cosmetics etc. With this end in view Government of India realized that inspite of sufficient efforts made from time to time in India, since 1949 till date for the all round development of spice crops, the results are not up to the mark causing national losses, in respect of national income etc. Policy makers asked the Division of Horticulture for taking stock of the situation quickly. Thus, countrywide study for evaluating, the Integrated Programme for the Development of Spice crops during Eighth Five-Year Plan was proposed by the Division of Horticulture, to the Ministry of Agriculture. This proposal has been accepted by the Economic and Statistical Advisor, Government of India and has been assigned to the different Agro- Economic Research Centres, which are an All India Body for the fundamental researches working under the Economic and Statistical Advisor Government of India for agricultural and rural development problems and prospects evaluation. For this evaluatory study of spice crops at all India level states selected are, Kerala, Andhra Pradesh, Maharastra Madhya Pradesh and Uttar Pradesh. The concerned Agro-Economic Research Centres responsible for this evaluatory study in the respective states entrusted by the ESA, Govt. of India to evaluate the IPDS during the Eighth Five Year Plan, have been given in detail in the Table II-1.

37 37 Table II-1 Selected States and Research Centres Engaged in the Study Sl. No. Research Centres Engaged Selected states 1 Agro-Economic Research Centre Kerala University of Madras, Chennai Agro-Economic Research Centre Andhra Andra Pradesh University Visakhapatam Agro-Economic Research Centre Gokhhale Maharastra Institute of Politics and Economics, Pune Agro-Economic Research Centre JNKV. Madhya Pradesh Jabalpur 5 Agro-Economic Research Centre University of Allahabad, Allahabad, Uttar Pradesh Objectives The specific objectives determined for conducting this evaluatory study are common for all the selected states inspite of their many disparities. The specific objectives of this study are given as under: 1. To evaluate the status of spice cultivation prior to and during the implementation of the scheme. 2. To study the effectiveness of mode of implementation adopted. 3. To study the impact of the programme in stepping up the production.

38 38 4. To obtain suggestions at different levels for improvement on mode of implementation and monitoring aspects. 5. To furnish rational guidelines for betterment of the scheme. Methodology For conducting the evaluatory study on spice crops at national level five states have been selected on the basis of area coverage under total spice crops. From each state except Andhra Pradesh three spice crops have been selected on the basis of maximum area coverage under the individual spice crop from the scheme districts. Thus three districts for three spice crops under the Integrated Programme for the Development of Spice crops have been selected from all the selected states excepting Andhra Pradesh. From each selected district, blocks are selected with the same criteria as has been adopted for the selection of the states and the districts. At the next stage villages from the point of view of spice crops growth are selected from the selected blocks on the advice of the block officials. With the help of block and village level officials for the selection of sample beneficiary spice growers lists have been prepared for each selected village spice growers. The listed beneficiary spice growers further have been grouped into five size groups according to their total cultivated area at par for all the selected spice crops in the selected states. The decided five size groups of beneficiary spice growers along with the name of different size groups and their respective sizes in hectares have been given in Table II-2 for ready reference and convenience. In Andhra Pradesh only two spice crops are under the study therefore only two districts have been considered and not three alike other selected states. The selection of blocks villages and beneficiary spice growers have been made in the similar way as it has been done for other selected states. Table- II- 2

39 39 Size-Groups of Sample Beneficiary Spice Growers Sl. No. Names of Size Group of holdings Measurement in Hectares 1 Marginal Hectares 2 Small Hectares 3 Semi-medium Hectares 4 Medium Hectares 5 Large and more Hectares Selected States under the Study For conducting this evaluatory study on spice crops at national level selection of states have been made on the basis of area under total spice crops. While looking to the area under total spice crops (Table II-3), the states of Kerala, Andhra Pradesh, Maharastra, Madhya Pradesh and Uttar Pradesh jointly owned percent percent and percent of the area under total spice crops out of India s area under the total spice crops during the years , and respectively. Table II-3 Percentage Share of Area under Spice Crops in the Selected States and Other States in India (Figures in percentages) Selected States Sl. No. 1 Kerala Andhra Pradesh Maharastra Madhya Pradesh Uttar Pradesh Total Selected States Other States All India ( ) ( ) ( ) Note: figures in Parenthesis are of total area under spice crops in hectares. Among the selected states Andhra Pradesh remained at the top by owning total spice crops area out of the total spice crops area of India in the range of percent to