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Sectoral Paper

The Banyan is great, not because of its trunk, but because of its offshoots.
We take pride in our partners, because it is they who enable us to reach out to rural India.

Plantation and Horticulture

Talking Rural India >> Forward


NABARD’s Vision
Development Bank of the Nation for
fostering rural prosperity

NABARD’s Mission
Promote sustainable and equitable
agriculture and rural development
through participative financial
and non-financial interventions,
innovations, technology and
institutional development for
securing prosperity

Title : Sectoral Paper on Plantation and Horticulture


Written and Published by : Farm Sector Policy Department
NABARD Head Office, Mumbai
Date of Publishing : February 2018
Design & Printing : Wyatt Prism Communications and Image Impression
Contact : Plot No. C-24, ‘G’ Block, Bandra Kurla Complex, Bandra
East, Mumbai- 400 051, India.
Tel. : +91 22 2653 0094
E-mail : [email protected]
Farm Sector Policy Department
Website : www.nabard.org,
National Bank for Agriculture and Rural Development
www.youtube.com/nabardonline
Bandra Kurla Complex,
Bandra (East), Mumbai – 400 051
E- mail : [email protected]
Website : www.nabard.org
Sectoral Paper on
Plantation and Horticulture

Farm Sector Policy Department


National Bank for Agriculture and Rural Development
Mumbai
Disclaimer
The views expressed in the sectoral paper are those of the authors and do not necessarily reflect the views or policies of NABARD.
NABARD accepts no responsibility in whatsoever for any loss or damage arising out of use of this document.
Foreword
India’s horticulture output reached 300.54 million tonnes in 2016-17 (surpassing food grain production of
273.38 million tonnes) cultivated over 25 million ha and is expected to reach 305.43 million tonnes in 2017-
18. Gross value of Horticulture production in the country is estimated to be about ` 5 lakh crore, with an
average value of about ` 2 lakh/ha of area under these crops.

Plantation and Horticulture is an important segment in the Indian Agriculture, contributing more than 33%
of the agricultural output by value and registering higher annual growth rate (about 7%) than agriculture
per se (about 2%). Adoption of progressive technologies such as use of hybrid seeds, micro-irrigation
techniques, micro-climate modification, protected cultivation, hydroponics, etc., has led to the increased
crop productivity and income per unit area in this sector.

This sector is important from the perspective of doubling of farmers’ income by 2022, as the sector is
amenable for adoption by small and marginal farmers by offering agro-climate related crop diversity
across the country. Organizing the Horticulture Farmers into Fruit / Vegetable Producers Organizations
(FPOs/ VPOs) in identified fruit and vegetable clusters in various states shall enable aggregation of produce
at village level collection centers and enable their linkage to the pack houses/ processing units, and
ultimately to markets with a resultant increase in better margin for farmers.

NABARD believes that the Horticulture and Plantation sector is expected to play a prominent role in the
overall economic prosperity of the country in the coming years. This Sectoral Paper on Plantation and
Horticulture encompasses subsector-wise status, potential, opportunities & challenges, discussion on the
expected impact of climate change and the strategy on adaptation & mitigation measures as suggested
by various think-tanks in the country. I hope that this paper will help all stakeholders in harnessing the
horticulture potential of our country through appropriate measures including policy interventions,
effective delivery mechanisms and credit-supported interventions.

Dr Harsh Kumar Bhanwala


Chairman
National Bank for Agriculture and Rural Development
Mumbai
February 2018
Message
Plantation and Horticulture sectors covers a rainbow of crops like fruits, vegetables,
spices, flowers, medicinal and aromatic crops, mushrooms, bee keeping and
plantation crops like tea, coffee, rubber, coconut, oil palm, etc. Importance of this
sector in rural economy is increasing for its diversity, higher productivity, export
orientation and intensification of production system, even amongst small and
fragmented farmers.

Between 2012 to 2014-15, there has been an increase of 10 per cent in horticulture
production compared to an increase of 6 per cent in the production of food grains.
Since 2012-13, the production of horticulture has outpaced the production of
food grains. Horticulture sector is not only important from economic perspective
to farmers but also assumes significance from the nutritional perspective of
our population.

Horticulture is poised to play as a key sector for achieving the GoI’s efforts for
doubling of farmer’s income by 2022, owing to willingness of growers in adapting
technology for increased crop productivity and in effective natural resources
management, rapid growth in consumption demand, value chain approach in
linking farmers to markets, peri-urbanization of horticulture production systems,
amenability for organizing growers of horticultural crops into effective aggregation
models like Village Producers Organizations (VPOs), Producer Companies (PCs), etc.

Cultivation of horticulture crops in clusters brings advantages of scales of operations


and can spur establishment of entire chain from production to marketing, besides
giving recognition to the districts for specific crops. Thus, reorientation of their
cultivation through cluster-based development is the focus area of the Government,
as announced by the Hon’ble Union Finance Minister in his Budget Speech for 2018-19.
The key challenges that the Horticulture sector face in India are post-harvest
losses, availability of quality planting material and lack of market access for the
produce of small farmers. The combined wastage (harvest and post-harvest) for
horticulture crops between 5 to 15 per cent in the case of fruits and vegetables
is very high, compared to the range of 5 to 6 percent in the case of cereals,
around 6 to 8 per cent for pulses and 5 to 10 per cent for oilseeds (CIPHET, 2015).
However, at the same time the horticulture produce is amenable for various
levels of value addition viz., grading, standardization, storage, retail packing
and processing. Significant investments are required for setting up backward
and forward infrastructure, viz. collection/aggregation centers, cold stores, pack
houses, refrigerated transportation, etc. The attractive capital grant provided by
the GoI through the Ministry of Food Processing Industries with an allocation of
` 1650 crore to be utilized by 2020 may be effectively utilized by the existing and
potential cold chain logistic players dealing with perishable agri commodities,
including the horticulture crops.

The vegetables and fruits segments of the Horticulture sector can be key drivers
of agricultural growth and can be further developed by appropriate investments
in harvesting, low cost storage facilities and processing technologies along with
development of marketing infrastructure.

Besides providing production and investment credit as refinance support to the


bankers, NABARD focuses to explore the demand for horticulture credit on a
value chain perspective at grassroots level and using Area Development Projects
(ADPs) as a platform for bringing bankers, state government and industry for
supporting horticulture sector in the country.

I believe that the integrated approach addressing all the chain in the development
would be essential to sustain the ‘Golden Revolution’ and provide a foundation
for Horticulture-led transformation in the country addressing the issues of
employment, nutritional security and environmental concern resulting in poverty
alleviation and improved quality of life in Rural India. I compliment the Team
C-TAG of Horticulture Discipline for bringing a well-documented sectoral paper
on this important component of Indian Agriculture depicting its sub-sectoral
analysis of potential and issues.

H.R. Dave
Deputy Managing Director
National Bank for Agriculture and Rural Development
Mumbai
February 2018

Sectoral Paper on Plantation and Horticulture | iii


Contents
1 Introduction 01

2 Growth in Area and Production 03

3 Export Prospects for 20


Plantation & horticulture
produce

4 Key Growth Sectors under 22


Plantation & Horticulture

5 Climate Change & Horticulture2 26

6 Government Programmes 32
and interventions for
Horticulture Development

7 Thrust areas / Hi-tech 36


horticulture enterprises
for development with credit

8 Challenges 38

9 Approaches 41

10 Doubling of Farmers’ Income 43

11 Role of NABARD in 46
development of P&H Sector

12 Technological Innovation in 48
Horticulture Sector
1. Introduction

Sectoral Paper on Plantation and Horticulture | 1


1.1 The canvas of Horticulture and Plantation sustainability and enhancing the export
in India is broad-based and multifaceted earnings. Analysts are of the view that the
with fruits, vegetables including onion emergence of agri - business ventures in
and potato, ornamentals, medicinal and India is directly correlated to the progress
aromatic plants, spices and condiments, in the Plantation and Horticulture sector in
plantation crops and mushroom. the country.
Temperate fruits, vegetables, flowers and
spices are grown in the North Himalayan 1.4 The Twelfth Plan has set a target of 8 per
region while subtropical and tropical fruits, cent growth over the five year period
vegetables, ornamentals, mushroom, 2012-13 to 2016-17 and this target of
spices are cultivated in the rest of India. accelerating GDP growth is accompanied
Spices and plantation crops are found in by a specific target to accelerate growth of
the peninsular region. Arid zone crops are agricultural GDP. While agricultural growth
concentrated in western India. registered 3.6 per cent during Eleventh
Plan, the Twelfth Plan aims at accelerating
1.2 India is ranked second, both in fruits and agricultural growth further to 4 per cent.
vegetables with regard to the area and The bulk of the acceleration in growth
production, after China and stands first in is expected to come from diversification
the production of Peas and Okra, second in towards Horticulture, Animal Husbandry
Onion, Brinjal, Cabbage, Cauliflower, Potato and Fisheries.
and Tomato. It ranks first in the area and
production of mango and banana and holds 1.5 Government of India has set out to double
the world record for highest productivity the farmers’ income by 2022 by addressing
in grapes and over 17 per cent of the the issue of agriculture sustainability in
world’s coconut production. The country the face of climate change, market and
has significant stake in global cashew nut technological developments and the need
output, processing and kernel trade. of effective policy measures to aid the
farmers. Horticulture sector with its wide
1.3 Horticulture and Plantation sector is crop diversity suiting to different agro
widely heralded as sunrise sector that climatic conditions, amenability to be
provides the dynamic tool for improving taken up by small and marginal farmers,
economic conditions of the farmers and large scope for adoption of improved water
entrepreneurs, creating diversification productivity at affordable investments,
opportunities with high value crops, availability of low cost technologies
increasing the productivity of land, for improving crop productivity, etc., is
providing nutritional security, generating poised to play a significant role in achieving
employment, ensuring ecological this mission.

2 | Sectoral Paper on Plantation and Horticulture


2. Growth in Area
and Production
2.1 Horticulture crops per se
2.2 Fruit crops
2.3 Vegetables
2.4 Aromatic Crops
2.5 Medicinal Plants
2.6 Spices
2.7 Flowers
2.8 Plantation crops
2.9 Protected cultivation
2.10 Organic farming
2.11 Precision Farming
2.12 
Value chain financing - Integrated
Value Chain approach
2.13 Integrated cold chain
infrastructure for perishables

Sectoral Paper on Plantation and Horticulture | 3


2.1. Horticulture crops per se Over the last decade, the area under horticulture
The Horticulture sector has been a driving grew by about 3.8% per annum but production
force in stimulating a healthy growth trend in rose by 7.6% per annum. The higher growth
Indian Agriculture. As per the data of National rate in Horticulture sector, therefore, was
Horticulture Board’s for 2016-17, India produced brought about by improvement in productivity
300.54 m MT of horticulture produce from an of various horticulture crops rather than due
area of 24.85 m ha, surpassing the food grain to increased area under cultivation, which
production of 273.38 m MT. In comparison to increased by about 28% between 2001-02
the previous year (2015-16), the increase in area and 2011-12. The special thrust given to this
under horticultural crops was 1.9% while the sector, especially after the introduction of the
production recorded a growth rate of 3.2%. The Horticulture Mission for North East & Himalayan
highest growth rate in area was recorded with States (HMNEH) and the National Horticulture
regard to flower crops (11.4%), followed by fruits Mission (NHM) in the X Plan, has yielded positive
(2.8%) and vegetables (2.0%). The growth rate results.
in production was highest in vegetables (3.6%),
followed by fruits and flowers (2.9%). With a Horticulture growth during the XI Plan at 4.7 per
production of 37.14 m MT Uttar Pradesh was cent was only marginally short of the 5 per cent
the largest producer of horticultural crops in the target. The targeted growth rate for the sector
country, followed by West Bengal (30.15 m MT), during the XII Plan is 5 per cent. The growth in
Madhya Pradesh (24.01 m MT), Gujarat (23.16 m area and production under various plantation
MT) and Maharashtra (21.67 m MT). These 5 states and horticulture crops for the last five years is
accounted for about 46% of the total horticultural given in Table-1.
crop production in the country.

Table-1. Growth in Area and Production of Plantation and Horticulture Crops during 2012-13 and 2016-17
(Area: million ha, Production: million MT)
Crops 2012-13 2013 – 14 2014-15 2015-16 2016-17
Area Prodn. Area Prodn. Area Prodn. Area Prodn. Area Prodn.
Fruits 6.98 81.28 7.22 88.98 6.23 89.51 6.30 90.18 6.37 92.92
Vegetables 9.20 162.18 9.40 162.90 9.42 166.57 10.11 169.06 10.24 178.17
Spices 3.07 5.74 3.16 5.91 3.32 6.11 3.47 6.99 3.67 8.12
Plantation Crops @ 3.64 16.98 3.67 16.30 3.53 15.58 3.68 16.66 3.60 17.97
Flowers 0.23 1.70 0.26 2.30 0.25 2.14 0.28 2.18 0.31 2.39
Others 0.56 0.92 0.49 0.97 0.66 1.00 0.63 1.02 0.66 0.97
Total 23.69 268.84 24.19 277.35 23.41 280.91 24.47 286.19 24.85 300.54
@Excluding coffee, tea and rubber

Picture 1: Area and Production of Horticulture & Plantation Crops in India


during 2012-13 to 2016-17

300.54
277.35 280.91 286.19
268.84

Area (Million ha)


Production (Million MT)

23.69 24.19 23.41 24.47 24.85

2012-13 2013-14 2014-15 2015-16 2016-17

Source: National Horticulture Board

4 | Sectoral Paper on Plantation and Horticulture


The per capita availability of fruits and Between 2007-08 and 2016-17, production of
vegetables in the country during 2013 was fruits increased by about 42% while the area
estimated to be 199 g per person per day increased by about 7.6%, indicating that the
and 377 g per day per person respectively. increased production of various fruits in the
Horticultural production in the country has country is largely due to increased productivity.
shown a compounded annual growth rate of In fact, the productivity of fruit crops registered
5.95 % during the last ten years. The average a growth of 30%, from 11.20 MT/ha to 14.6 MT/ha
annual growth rate of horticulture output among during this period.
agri and allied sectors was next only to fibre
and livestock. Though Maharashtra holds the largest area
under fruit crops (7.05 lakh ha) followed by
2.2. Fruit crops Andhra Pradesh (6.09 lakh ha), the latter
India is the second largest producer of fruits accounts for the largest production (13.61 m MT)
with a production of 92.92 m MT during 2016- in the country followed by Maharashtra (10.63 m
17, after China. India ranks first in production of MT), due to higher crop productivity (22.3 MT in
Banana, Papaya, Mango and Guava and 4th in AP vis-à-vis 15.0 MT/ha in Maharashtra).
production of oranges. Based on the production,
the top three leading fruit crops in the country The major impediments in the growth of fruit
are Banana (31% with 29.16 m MT), Mango crops are:
(21% with 19.87 m MT) and Citrus (14% with • Shortage of elite planting material for
12.87 m MT). various fruit crops
• Large production areas under fruit orchards
In comparison to 2015-16, during 2016-17, are old and senile with lower productivity
highest growth in productivity was recorded • Perishability and lack of/ inadequate post-
in custard apple (23%), followed by ber (13%) harvest and cold chain infrastructure,
and citrus fruits (10%). In contrast, apple • Poor access to markets, extension services
(-11%), guava (-10%) and plum (-8%) showed and credit.
deceleration in production. • Lack of linkages and integration between
various players in the supply chain, such
The production share of major fruit crops during as from farm gate to market place, from
2016-17 is depicted in the picture below. farmer to processing unit, etc.

Picture 2: Pie diagram showing the share in production of various Fruit Crops
during 2016-17

Apple 2% Mango 21%

Banana 31% Papaya 7%

Citrus 14% Pineapple 2%

Grapes 3% Pomegranate 3%

Guava 4% Sapota 1%

Jackfruit 2% Others 10%

Sectoral Paper on Plantation and Horticulture | 5


2.3. Vegetables The major impediments for growth of vegetable
India is the second largest producer of production in the country are:
vegetables with a production of 178.17 m MT • Lack of quality seeds and high cost of
during the year 2016-17 after China. India hybrid seeds;
ranks first in production of Okra and second • Lack of varieties suitable specifically for
in production of Onion, Brinjal, Cabbage, processing needs
Cauliflower, Potato and Tomato. Top three • Wide gap between current and potential
leading crops are Potato (48.60 m MT), Onion level of productivity;
(22.43 m MT) and Tomato (20.70 m MT). With a • Technology suitability for small and
production of 28.19 m MT, Uttar Pradesh leads marginal land holdings;
the country in vegetable production. This is • High post-harvest crop losses and lack of
followed by West Bengal (25.51 m MT), Madhya efficient post-harvest management and
Pradesh (17.93 m MT), Bihar (14.52 m MT) and diversification of markets;
Gujarat (13.61 m MT). The production share of • Volatile prices;
major vegetables during 2016-17 is given in the • Poor access to markets, extension services
picture below. and credit.

Picture 3: Pie diagram showing the share in production of various Vegetable


Crops during 2016-17

Beans 1% Onion 12%


Gourds 2% Peas 3%
Brinjal 7% Potato 27%
Cabbage 5% Radish 2%
Carrot 1% Tapioca 2%
Cauliflower 5% Tomato 11%
Chillies (Green) 2% Others 16%

Okra 4%

6 | Sectoral Paper on Plantation and Horticulture


2.4 Aromatic Crops and their products also account of exports in the
Aromatic crops are from a numerically large range of ` 10 billion.
group of economically important species. There
has been increasing demand for essential oils, There is global resurgence in traditional and
aroma chemicals, drugs and pharmaceuticals alternative health care systems resulting in
in the world market since two decades. world herbal trade which stands at US$ 120
Aromatic compounds are present in various billion and is expected to reach US$ 7 trillion by
parts of plants, such as roots, wood, bark, 2050. Indian share in the world trade, at present,
foliage, flowers, fruits, seeds, etc. Some of however, is quite low.
the important aromatic plants like Citronella
grass, Palmarosa, Vetiver, sweet flag (bach), Major medicinal crops in the country are long
lavender, geranium, patchouli, Bursera, Mentha, pepper, periwinkle, Rauvolfia, Dioscorea,
muskdana (musk mallow), dawana, Ocimum, Isabgol, Ammi majus, Belladonna, Cinchona,
etc. have great demand in the country. During pyrethrum, etc. Due to shrinkage of natural
2016-17, production of aromatic crops including source of these medicinal plants and growing
medicinal plants was 9.72 lakh MT from 6.64 demand, the commercial cultivation is gaining
lakh ha area. The leading States in production of importance. National Medicinal Plants Board
aromatic crops are Rajasthan, Uttar Pradesh and (NMPB) is engaging in various conservation
Madhya Pradesh. activities by developing sustainable way
through central sector scheme on Conservation,
The major impediments for growth of aromatic Development and Sustainable Management of
crops are: Medicinal Plants.
• Shortage of quality planting material;
• Weak producer-industry linkage (i) In-situ Conservation
• Lack of awareness on quality standards In-situ conservation deals with the on-site
• Poor access to markets, extension services conservation of the wild genetic resources/
and credit genetic diversity in natural habitat. In
India, the conservation of forest areas is
2.5 Medicinal Plants through development of Protected Areas
About 6000-7000 species are estimated to like National Parks, Wildlife Sanctuaries
have medicinal usage in folk and documented and Biosphere Reserve. Promotion of in-
systems of medicine like Ayurveda, Siddha, situ conservation of medicinal plants is
Unani and Homoeopathy. About 960 species of also important to AYUSH industry due
medicinal plants are estimated to be in trade, to its dependence on medicinal plants.
of which 178 species have annual consumption It involves survey, inventorisation and
levels in excess of 100 metric tons. Medicinal documentation of important medicinal
plants are not only a major resource base for the plants in their natural habitat (in-
traditional medicine & herbal industry but also situ). Further in-situ conservation
provide livelihood and health security to a large activities have been carried out through
segment of Indian population. The domestic Medicinal Plants Conservation and
trade of the AYUSH industry is of the order of Development Areas (MPCDA’s) and in-situ
` 80 to 90 billion. The Indian medicinal plants Resource Augmentation.

Sectoral Paper on Plantation and Horticulture | 7


(ii) Ex-situ Conservation spices, particularly black pepper, cardamom
Ex-situ conservation deals with the off- and other Zingiberaceous spices. India has been
site conservation of the wild genetic a traditional producer, consumer and exporter
resources / genetic diversity. It includes of spices. There are about 109 spices listed by
collection, preservation and maintenance International Organization for Standardization,
of selected genetic resources from wild. and India grows about 60 of these spices. Almost
Ex-situ conservation of medicinal plants all the States in the country produce one spice
is a complementary action to conserve crop or the other. During the year 2016-17,
the genetic diversity, thereby reducing spices are grown in an area of 3.67 m ha with an
pressure on wild habitats and augmenting estimated production of 8.12 m tons.
raw material availability. For many species
of medicinal plants their wild population Indian spices flavour foods in over 130 countries.
is at critical level and it is not suitable for The USA, Canada, Germany, Japan, Saudi Arabia,
dealing ex-situ conservation action. It can Kuwait, Bahrain and Israel are the main markets
serve as field gene banks and also help for Indian spices. During 2016-17, Indian spices
in engaging the number of stakeholders exports have been able to continue its increasing
in production and regeneration of trend both in volume and value. During the year,
medicinal plants. it is estimated that about 9.48 lakh tons of spices
and spice products valued at ` 17664 crore
The major impediments for growth of have been exported from the country as against
medicinal plants are: 8.43 lakh tons valued ` 16238 crore in 2015-16
• Shortage of quality plating materials; registering an increase of 12% in volume and
• Weak producers-industry linkage; 8.8% in rupee terms of value.
• Lack of awareness on quality standards;
• Poor access to markets, extension Top three leading spice crops are chillies (2.09
services and credit m MT), Garlic (1.69 m MT) and Turmeric (1.07
m MT). The leading states in production of
2.6. Spices spices are Rajasthan, Andhra Pradesh, Madhya
India is traditionally known as the spice bowl Pradesh, Gujarat and Telangana. The production
of the world. The Western Ghats region is share (2015-16) of major spices crops is given in
believed to be the centre of origin of many the picture below.

Picture 4: Pie diagram showing the share in production of various Spice Crops
during 2015-16

Seed Spices 21%

Cardamom 0%

Chillies (Dried) 27%

Tree Spices 3%

Garlic 18%

Ginger 15%

Pepper 1%

Turmeric 15%

8 | Sectoral Paper on Plantation and Horticulture


The major impediments for growth of spices of about 18% for the last five years. The major
crops are: share of flower production is from marigold,
• Shortage of quality planting and seed chrysanthemum and rose and various types
materials; of modern cut flowers like orchid, carnation,
• Low crop productivity; gladiolus, jasmine, dahlia, tuberose, bird of
• Lack of awareness regarding crop-wise paradise, china aster and gerbera. The major
country/region-specific quality standards, flower producing states are Tamil Nadu, Andhra
including the acceptable levels of pesticide Pradesh, Karnataka, Madhya Pradesh, Gujarat,
residues, in respect of exportable products. West Bengal etc. North Eastern states are
• Lack of awareness on quality standards; emerging as major contributors of modern cut
• Poor access to markets, extension services flower production, especially for anthuriums,
and credit lilies and orchids.

2.7 Flowers The major impediments for growth of floriculture


Government of India has identified floriculture are:
as a sunrise industry and accorded 100% export • Shortage of quality plating and seed
oriented status. Owing to steady increase in materials and high cost of planting
demand for flowers, floriculture has become material;
one of the important commercial activities in • Lack of awareness on quality standards;
Indian agriculture. Thus, of late, commercial • Perishability and lack of adequate post-
floriculture has emerged as hi-tech activity with harvest infrastructure;
cultivation under controlled climatic conditions • Poor access to markets, extension services
of greenhouse. Floriculture in India is being and credit;
viewed as a high growth industry. Commercial
floriculture is becoming important from the Picture 5: Pie diagram showing the share in production of various Flower Crops
export angle. The liberalization of industrial and during 2016-17
trade policies paved the way for development of
export-oriented production of cut flowers. The
new seed policy had already made it feasible
Chrysanthemum 5%
to import planting material of international
varieties. Indian floriculture industry has been Gladiolus 5%
shifting from traditional flowers to cut flowers for
export purposes. The liberalized economy has Jasmine 3%
given an impetus to the Indian entrepreneurs for
establishing export oriented floriculture units Marigold 26%
under controlled climatic conditions.
Rose 10%

The growth rate of production of flowers in the Others 51%


country is highest among the horticulture crops.
The production has more than doubled to 2.39
m MT during the year 2016-17, registering CAGR

Sectoral Paper on Plantation and Horticulture | 9


2.8 Plantation crops
2.8.1. Unorganised Plantation crops
The major unorganised plantation crops grown
in the country are Coconut, Areca nut, Cocoa and
Cashew. The area and production under these
crops during the year 2016-17 (2nd AE) are given
in the table below.

Table-2. Growth in Area and Production of Plantation Crops during 2016-17


Crop Area Production Leading States
(000 ha) (000 MT)
Areca nut 455 723 Karnataka, Kerala, Assam, Meghalaya, WB and TN
Cashew nut 978 745 Maharashtra, Kerala, AP, Karnataka, Orissa, TN
Cocoa 83 19 Kerala, Karnataka, AP, TN
Coconut 2082 16486 Tamil Nadu, Kerala, Karnataka, AP
Total 3598 17972

In the country, the cashew cultivation is mainly The major impediments for growth of plantation
taken up on marginal and waste lands. There crops are:
are about 3800 cashew processing units in the • Low Productivity. Large area is affected
country, of which more than 50% are in SME by coconut root wilt and areca nut yellow
sector with processing capacity of about 16 lakh disease
MT. The domestic production of raw cashew • Low value addition in Areca nut and
meets hardly 50% of the processing capacity Coconut
and rest is being met from imports. Annual • Poor linkage with processing facilities,
exports are valued over ` 3000 crore. especially for oil palm and fluctuating
prices.
Coconut, areca nut and cocoa are ideal for • Poor access to extension services and
multitier cropping system and mixed cropping. credit
These crops are dominated by small holdings
and homestead farming. There is a need for 2.8.2. Organised Plantation crops
improving productivity, diseases management Tea, Coffee and Rubber are three organised
of root wilt in Coconut and yellow leaf disease plantation crops covered under Plantation
in Areca nut. Labour Act and are not covered under Land
Ceiling Act. Cardamom, a spice, is also covered
Apart from the above crops, Oil under Plantation Labour Act.
Palm which got a major
boost under the Oil 2.8.2.1 Tea
Palm Development India is one of the world’s leading producers
Programme of the of tea. It boasts of about 23 per cent share by
Government of volume in the total world production of tea.
India is currently The tea produced in India is among the finest
grown in 16 states in the world. This is due to strong geographical
with an estimated indications, good tea processing units,
area of 2.82 lakh innovation, and strategic market expansion.
ha with major areas Nearly 12 per cent share of world tea exports
in Andhra Pradesh, in 2016 was from India. The tea industry is also
Karnataka, Tamilnadu, India’s second-largest employer with over 3.5
Mizoram, Odisha and million workers employed in over 1,500 tea
Telangana. growing estates.

10 | Sectoral Paper on Plantation and Horticulture


Assam, West Bengal, Tamil Nadu and Kerala of the global coffee production. The total
are the major tea growing states. They account production in India stood at 3,12,000 MT in
for 98% of the total country’s production. 2016-17, of which Robusta variety accounted
Other traditional states where tea is grown to for 217000 MT (70%) and Arabica accounted
a small extent are Tripura, Himachal Pradesh, for 95000 MT (30%). Coffee industry witnessed
Uttarakhand, Bihar and Karnataka. The non- significant growth during the past three decades,
traditional states that have entered the tea map especially after the decision by the Government
of India in the recent years include Arunachal to allow free sales by the producers, rather than
Pradesh, Manipur, Meghalaya, Mizoram, selling to a central pool.
Nagaland and Sikkim. India produces some of
the world’s finest teas – Darjeeling, Assam and The area under coffee plantations in India
Nilgiris famous for their delicate flavour, strength was 4.34 lakh ha during 2015-16. Most of this
and brightness. With diverse agro climatic area is concentrated in the southern states of
conditions, India produces medley of teas suited Karnataka (54 per cent), Kerala (20 per cent) and
to different tastes and preferences of consumers. Tamil Nadu (8 per cent). Productivity of coffee
The characteristics of each region are distinct, was around 876 kg/ha during 2015-16. Out of
which sets them apart from one another in many 3.88 lakh coffee growers, 99 per cent are small
different ways. growers, while 1 per cent of growers are medium
to large sized. These plantations employ an
During 2015-16, the tea production in the country average of around 6,32,993 labourers on a daily
was 1233 million kg from the 5.67 million ha. Tea basis (2015-16).
exports from India during 2015-16 was 232.92
million kg valued at ` 4493 crore and imports was While coffee in India has traditionally been an
18.43 million kg valued at ` 244.48 crore. During export-oriented commodity, coffee planters
the year 2012-13, 46% of total tea produced in in India are finding significant traction in the
the country was sold through public auctions, domestic market as well. India’s domestic
8% was directly exported and the remaining 46% coffee consumption has increased
was sold through ex-garden private sale. steadily from around 50,000 MT in 1998
to 115000 MT in 2011, registering a
The major impediments for growth of tea in the CAGR of about 6 per cent. This has
country are: led to the setting up of a number of
• Limited potential for expansion of area international and Indian coffee retail
under cultivation; chains in the country in recent years
• Large number of plantations are old and like Lavazza, Café Coffee Day, Costa,
senile with low productivity Gloria Jean’s Coffee, Coffee Bean &
• Slow progress in replanting and Tea Leaf; and more recently in 2012,
rejuvenation programme Starbucks in a 50:50 JV with Tata Global
Beverages. India exports coffee to over 45
2.8.2.2 Coffee countries. The total coffee exports from the
India is the seventh largest producer of coffee, country stood at 3.55 lakh MT in 2014-15. Italy is
after Brazil, Vietnam, Columbia, Indonesia, the largest importer of Indian coffee with a share
Ethiopia and Honduras. India accounts for of 23% of total exports. Export earnings have
around 2 per cent of the area and 3.7 per cent increased from ` 1050 crore in 2001-02 to ` 5632

Sectoral Paper on Plantation and Horticulture | 11


crore in 2016-17, growing at a CAGR of about 14
per cent during the period.

The major impediments for growth of coffee are:


• Limited potential for expansion of area
• Large number of coffee plantations are old
and senile with low productivity
• Slow progress in expansion of area in non-
traditional areas
• White stem borer infestation, especially in
Arabica coffee

2.8.2.3 Rubber
Rubber cultivation in India has been traditionally
confined to the hinterlands of the Southwest
coast, mainly in Kanyakumari district of Tamil
Nadu and Kerala. Non-traditional rubber growing
areas are hinterlands of coastal Karnataka, Goa,
Konkan Region of Maharashtra, hinterlands of
coastal Andhra Pradesh and Odisha, the North
Eastern states, Andaman and Nicobar Islands,
etc., where rubber is now being grown. Humid
tropical climate prevails in the rubber-growing material from abroad, as international prices
tract. Average annual rainfall in the tract varies might be lower than domestic ones.
from about 2000 to 4500 mm. India ranks 5th in
the production of natural rubber, after Thailand, The major impediments for growth of Rubber
Indonesia, Vietnam and China, with about are:
1.2 million growers, of which barring 537 big • Limited potential for expansion of area
plantations having more than 10 ha area, all • Large number of plantations are old and
others are small growers with a landholding of senile with low productivity
0.55 ha or less. The major producing states in • Slow progress in expansion of area in non-
India are Kerala (>90%), Tamil Nadu & Karnataka. traditional areas
About 88% of the rubber production is from • Low prices of the product coupled with
small and marginal growers. The provisional high cost of labour
figures for 2016-17 by Rubber Board show that
the productivity which was 1867 Kg/Ha in 2008- 2.9 Protected cultivation
09 declined to 1553 kg/ha during 2016-17. 2.9.1 Among the major constraints in production
of horticultural crops are the wide variations
The domestic production of rubber was 6.91 in key growth factors like carbon dioxide,
lakh MT during the year 2016-17 down from 9.14 temperature, sunlight, water deficiency or
lakh MT during the year 2012-13. The decline in excess, relative humidity, heavy winds, and
production is mainly on account of poor price. host of diseases and insect pests. Deviation
The domestic requirement is met though import from these conditions results in yield losses
of about 4.26 lakh MT during the year 2016-17. partially and sometimes totally. It is pertinent
The demand-supply gap is further expected to mention that the magnitude of impact of
to increase by about 20% taking into account climate change with unpredicted occurrence
the expected growth of automobile, footwear of events like unseasonal rains, hail storms
and other sectors consuming natural rubber. and weather on agricultural productivity,
Increase in domestic prices due to shortage of more specifically horticulture productivity and
domestically available natural rubber owing quality of produce is appreciated by farmers
to fall in production is a point of concern for and the scientific community. However, near
downstream industries as natural rubber is the optimal climatic conditions could be created
main raw material for them. In such a situation, by controlling the climate with the help of
the industry looks at alternative sources of raw greenhouse using different protected structures/

12 | Sectoral Paper on Plantation and Horticulture


methods/devices and such cultivation under 2.9.5 Potential assessment for protected
controlled environmental conditions is termed cultivation
as protected cultivation.1 At present, the estimated area under protected
cultivation is around 23000 ha (0.23% of
2.9.2 Protected cultivation in India in the area under vegetables and flowers). With the
beginning was confined to a few activities like incentives and promotional interventions
high value flower crops in potential floriculture under Central / State Government programmes
zones, ornamental plant nurseries and for like Mission for Integrated development
hardening and value addition of tissue culture of Horticulture (MIDH), several farmers /
plants. With the R&D interventions in evolving entrepreneurs are adopting the technology,
indigenous and low cost technologies, impact of more specifically for production of vegetables
interventions through Indo-Israel collaboration during off-season, growing exotic vegetables
projects, off-season cultivation to meet lean and flowers, nurseries and vegetable seedling
seasons’ demand and fast growing domestic production. Important protected cultivation
preferences for quality and exotic fruit and structures include polyhouses, poly-tunnels,
vegetable produce, protected cultivation is fast shade nets/anti-hail nets/net house cultivation
emerging as alternative production system and low cost poly houses (wooden / bamboo
involving high-tech and intensive practices. This frame structures) especially in hilly terrains.
activity is also recognized as a potential growth Considering an annual growth rate of 15%
driver for Plantation and Horticulture sector. in area expansion, the area under protected
cultivation is expected to double in next five year
2.9.3 Key advantages period from the present level.
• Increase in yield up to 5 to 8 times – high
productivity per unit area 2.9.6 Key Issues
• Significant saving in key inputs like water • Incentivize the farmers through credit
(up to 50%), fertilizers (about 25%) and linked back-ended subsidy
pesticides. • Arrange for technology and quality
• Better growth and uniformity in quality of input supply for protected cultivation
the produce infrastructure
• Feasible even in undulating terrains, saline,
waterlogged, sandy, hilly lands, etc.

2.9.4 Potential areas


• Urban and peri-urban areas to meet
requirement of fresh produce like
vegetables, fruits and flowers round the
year
• Areas with limited land and water resources
• Areas where availability of land for
cultivation is restricted because of snowfall
and areas where low temperature is
prevalent restricting cultivation of crops
under open field conditions.
• Small and marginal land holdings
for adopting intensive production
technologies
• As an agri-business enterprise for
enterprising youth in rural and urban
peripherals

1
R. S. Paroda, Former Secretary, DARE & DG, ICAR, Inaugural Address, delivered at the first National
Seminar on “Advances in Protected Cultivation”, at NASC Complex, Pusa Campus, New Delhi 110 012on
21 March 2013

Sectoral Paper on Plantation and Horticulture | 13


• Group approach through Protected 2.10.2 Status
Cultivation Clusters • As per the available statistics, India’s rank
• Special focus on training, capacity in terms of World’s Organic Agricultural
building and hand holding support for land was 15 as per 2013 data (Source FIBL
entrepreneurs with enabling access to & IFOAM Year Book 2015). The total area
technology along with credit under organic certification was 5.71 million
• Promotion of institutional set-up, including ha during 2015-16. This includes 26%
Farmers’ Producer Organizations and cultivable area with 1.49 million ha and rest
market facilitation through linking such 74% (4.22 million ha) forest and wild area
groups directly to institutional buyers, agri- for collection of minor forest produces.
retailers and export houses/ agencies. • India is the leading country in terms of
• Develop region specific package of number of organic producers with about
practices for protected cultivation of 5.85 lakh organic producers contributing
flowers and vegetables. nearly 24 % to the world organic producers
• Address constraints like transportation of of 2.4 million.
soil, soil sterilization, insurance of structure • India produced around 1.35 million MT
and crops etc. (2015-16) of certified organic products which
includes all varieties of agri products namely
2.10 Organic farming sugarcane, cotton, oil seeds, basmati
2.10.1 Organic agriculture is a holistic production rice, pulses, Spices, pea, Fruits, Dry fruits,
management system which promotes and Vegetables, Coffee and their value added
enhances agro-ecosystem health, including products. The production is not limited to
biodiversity, biological cycles and soil biological the edible sector but also produces organic
activity. It emphasizes the use of management cotton fiber, functional food products etc.
practices in preference to the use of ‘off- • Among all the states, Madhya Pradesh
farm’ inputs, taking into account the regional has covered largest area under organic
conditions require locally adapted systems. This certification followed by Himachal Pradesh
is achieved by using where possible agronomic, and Rajasthan.
biological and mechanical methods, as opposed • The States of Uttaranchal and Sikkim have
to using any synthetic materials to fulfill any been declared as organic states. Most of
specific function within the system (Codex the area in NE-Zone is being practiced
Alimentarius Commission). with organic farming. The states like Tamil
Nadu, Kerala, Madhya Pradesh, Himachal
Pradesh and Gujarat are promoting organic
farming vigorously.
• The total volume of export during 2015-16
was 263687 MT. The organic food export
realization was around 298 million USD.
Organic products are exported to European
Union, US, Canada, Switzerland, Korea,
Australia, New Zealand, South East Asian
countries, Middle East, South Africa, etc.

2.10.3 Opportunities
The Global Organic Movement is gearing
towards Organic 3.0 for truly sustainable
farming and consumption. The overall goal of
Organic 3.0 is to enable a widespread uptake of
truly sustainable farming systems and markets
based on organic principles with a culture
of innovation, of progressive improvement
towards best practice, of transparent integrity,
of inclusive collaboration, of holistic systems,
and of true value pricing.

14 | Sectoral Paper on Plantation and Horticulture


Organic agriculture, in many ways, is an 2.11 Precision Farming
eminently preferable sustainable approach for 2.11.1 Precision farming in the context of
the development of agriculture in India. Organic Indian farming scenario could be managing
agriculture offers multiple benefits, such as crop production inputs such as water, seed,
economical aspects (e.g. price premiums, fertilizers, etc., to increase yield, quality, profit,
high demand); natural resource conservation and reduce waste and become eco-friendly and
(e.g. improved soil fertility and water quality, sustainable. The intent of precision farming is to
prevention of soil erosion, preservation of match agricultural inputs and practices as per
natural and agro-biodiversity) and social crop and agro-climatic conditions to improve
benefits (e.g. generation of rural employment, the accuracy of their applications.
improved household nutrition and local food
security, reduced dependence on external 2.11.2 Contrary to agriculturally advanced
inputs). The favourable factors for promotion of countries where precision farming is practiced
organic farming in India include: in large farms, in Indian context the technology
• Diverse agroclimatic conditions facilitating can be adopted even on small holdings by
wide production base for important adopting compact area approach involving
produce with export potential a group of farmers focusing on high value
• Growing demand in the domestic market for crops. For standardizing and testing
organic fruits, vegetables, rice and wheat. field application of precision farming
• Presence of strong NGO sector with well- technology NABARD had earlier
established close linkages to large number supported an R & D project in
of small and marginal farmers, who can 1999-2000 in Dindigul district
play catalytical role in organic farming of Tamil Nadu undertaken by
promotion. MS Swaminathan Research
• Vast extent of dry lands (60% of total Foundation (MSSRF), Chennai
available agriculture land), tribal belts and which was implemented in 280
hilly regions in Eastern and North Eastern acres. One of the significant
region which are by default organic, interventions for large scale
facilitating easy conversion to organic. commercial propagation of the
• Potential for in situ production of organic technology at field level was the
inputs from locally available resources like launching of Tamil Nadu Precision Farming
crop residues, green manure, livestock Project (TNPFP) by Government of Tamil Nadu
manure, biofertilizers, etc. during 2004-05 to 2006-07.

The important products and potential states / 2.11.3 Ministry of Agriculture, Govt. of India has
areas for organic production in the country are established 22 Precision Farming Development
indicated below: Centres (PFDCs) located in different agriculture

Table-3. Potential organic products and production areas


Product States & Potential districts/areas
Tea Assam (Guwahati), (West Bengal Darjeeling), Uttaranchal (Dehradun) and Tamil
Nadu (Udhagamandalam)
Spices Kerala (Cochin, Idukki), Tamil Nadu (Coimbatore), Karnataka (Coorg), Andhra
Pradesh (Guntur)
Coffee Kerala (Wayanad, Peermade), Tamil Nadu (Dindigul, Coimbatore), Karnataka
(Coorg)
Rice Punjab (Amritsar, Jalandhar), Haryana (Darrang), Assam, Maharashtra
(Ratnagiri), Tamil Nadu (Kanchipuram, Thiruvallur)
Wheat Punjab (Ambala, Patiala, Bhatinda, Faridkot), Haryana, Uttar Pradesh
Vegetables All India (Various locations)
Fruits All India (Various locations)
Cotton Maharashtra (Akola, Amravati), Gujarat (Amreli, Kheda), MP (Indore)

Sectoral Paper on Plantation and Horticulture | 15


climate zones of the country. The functional roles • Awareness and adoption of collective
of PFDCs include undertaking field trials, crop marketing practices.
specific demonstrations, training, awareness • Technical and managerial hand-holding by
creation and technology transfer. project facilitating agencies / NGOs

2.11.4 Precision Farming Promotion in 2.11.5 Key Issues


Watershed projects • Promotion of the concept calls for a well-
NABARD is implementing over 1600 watershed coordinated approach among research
development projects under various funding institutes, extension workers/line
arrangements spread over 16 States covering departments and policy makers.
an area of about 1.72 m ha. These projects are • Adoption of technology simultaneously
being implemented with active involvement calls for field level hand holding support
of watershed community. As reported by till the farmers become well versed with
various impact assessment studies, the project production management systems.
implementation led to conservation and • High initial investment and operational
augmentation of resource base, perceptible costs (mainly due to inputs like water
change in farmers’ attitude towards adoption soluble fertilizers) where institutional
of innovative technologies and participatory credit support assumes significance.
management. The precision farming technology • High price and limited availability of water
with focus on vegetable cultivation can be soluble fertilizers.
adopted / propagated in potential watershed • Since crops considered for precision
projects implemented by NABARD leveraging on farming are mainly perishable vegetables,
the inherent advantages, viz: strengthening the infrastructure for post-
• Well established village community based harvest management and effective market
organizations viz. Village Watershed linkages through contract farming and
Committees, Self Help Groups, activity corporate retailing for ensuring better
based groups, etc. prices.
• Participatory approach in development
process. 2.12. Value chain financing -
• Augmentation of water resources (surface Integrated Value Chain approach
and groundwater) through soil and water 2.12.1 In the Indian context, under crop production
conservation measures, e.g. check dams, system, the developmental interventions have
percolation ponds, farm ponds, etc. been more towards supply chain management
• Focus on improved agriculture, judicious addressing gaps in production related
management of water resources, investments. Integration with post production
productivity enhancement, etc., which areas of processing and marketing are yet to take
forms integral component of watershed place to the desired extent more specifically in
development projects. perishable fruits and vegetables. A few successful

16 | Sectoral Paper on Plantation and Horticulture


examples, however, exist in areas where user- • Minimizing role of intermediaries,
industry interventions were involved, like (a) improved margins, better price discovery
where processing industry is involved through • Greater role for private players/corporate
contract farming (eg. gherkins, processing entities in extension, marketing and
potato, tomato, white onion, jasmine, etc.,) and investment in post-harvest handling
(b) where cooperative / corporate agri retailers infrastructure including warehousing,
are involved in procurement of agri produce
directly from farmers. 2.12.4. NABARD’S interventions in value
chain financing
2.12.2 With the increasing demand for quality • Forward integration of production
food and emerging opportunities for export programmes with processing and value
and emphasis of the policy makers on produce addition in horticultural crop–centric tribal
aggregation for marketing through farmers’ development projects implemented under
institutions like producer organizations, the Tribal Development Programmes (wadi
opportunities for promotion of value chain programmes).
approach are becoming wider. The key factors • Product-specific and supply driven natural
facilitating enabling environment for value chain resources based value chain projects
approach include: under Umbrella Programme for Natural
• Varied agro-climatic conditions and large Resources Management (UPNRM), which is
production/consumption base. a KfW assisted programme.
• Gradual shift in orientation amongst farmers • Pilot projects to address critical gaps in
from conventional farming to agri-business value chain of potato, tomato and onion
enterprises towards commercial agriculture under implementation in three locations.
• Access to better inputs and technology • A dedicated programme for promotion of
options farmers’ institutions/producer organizations
• Consumer basket exhibiting preferences for input resources management, produce
to value-added/processed products and aggregation and marketing – a critical
changing food preferences intervention which can be leveraged upon
• Demographic advantage - Growing young in value chain project financing.
urban population (in their 30s/40s) with
higher disposable incomes leading to 2.12.5. Approach
increasing discretionary spends, especially Current value chain models are either supply or
on quality food. demand driven. Integrated value chain models
• New value addition avenues: are yet to penetrate as the process requires crop
Environmentally low-impact foods, fair or activity specific approach which includes
trade practices, growing preference for comprehensive analysis, designing appropriate
organic foods, food safety issues. interventions including financial products and
• Expanding network of institutional credit a well-defined implementation process with
dispensation mechanism / credit purveyance. assigned role for every stake-holder. The process
• Inclination amongst bankers on integrated broadly includes:
value chain financing projects • Commissioning of comprehensive studies
for problem analysis, potential mapping,
2.12.3. Value chain approach - Benefits to interventions and stakeholders.
farming community & other stakeholders • Identifying and evolving region and
• Professional management product specific agri-business value chain
• Ramping up scale exponentially - deriving models with end to end solutions including
economies of scale; scope/ result: organized identification of critical gaps in infrastructure
production and market aggregation and roles for different stakeholders
• Access to improved technologies • Funding of the projects to be facilitated
• One-stop service access (especially where through the producer groups /
user industry tie-up or contract farming are organizations to be set up as part of project
involved) interventions. Where such producer
• Quality awareness organizations are already in existence, the
• Attracting investment in critical infrastructure same to be leveraged upon.

Sectoral Paper on Plantation and Horticulture | 17


• About 25,000 unregistered slaughter
houses are present in India which generally
lack chilling facilities.
• Growing annually at about 28%, the value of
cold chain industry in India is expected to reach
about USD 13 billion by 2017 through increased
investments, modernization of existing
facilities and establishment of new ventures
via private and government partnerships.
• Most equipment in use is outdated and
single commodity based, while there is
need to develop multi-product, multi-
chamber storage units.
2.13 Integrated cold chain • According to industry estimates,
infrastructure for perishables approximately 104 million MT of perishable
2.13.1 Cold chain is an important element of produce is transported between cities each
post-harvest infrastructure for the perishable year. Of this, about 100 million MT moves via
products, as it links all the facets of supply chain non–reefer mode and only 4 million MT (less
such as collection, storage and distribution of than 4%) is transported by reefer mode.
these products. India produces about 93 m MT • India has about 250 reefer transport
of fruits and 178 m MT of vegetables. It is also the operators (mostly small and non-integrated
largest producer of milk (155 m MT per year) and firms) that transport perishable products
produces about 8 m MT of meat and poultry, as and >30,000 refrigerated vehicles currently
well as about 11 m MT of fish (fresh as well as ply in India. Majority of the refrigerated
marine) a year. Although India has the potential vehicles (approximately 80%) are utilized
to become one of the world’s major food for milk and milk products transportation.
suppliers, the inefficient cold chain network
results in spoilage of almost 40 per cent of its 2.13.3 National Centre for Cold-chain
total agricultural production. Development (NCCD) has estimated that current
gap in cold storage infrastructure is about 40
2.13.2 With about 30% of fruits and vegetables m MT and an investment of $ 6-10 billion in
produced in the country, valued at around next 5-10 years is required. Other investments
` 50,000 crore, are wasted annually, the storage required include upgradation of old cold stores,
facilities need to be immediately revamped with development of long haul storage, CA storage,
modern technologies. Inadequate infrastructure development of skilled manpower, back end pack
and equipment, high handling costs, etc., are houses and front end retail spaces. However, the
plaguing the industry. In India, only 2.2% of paradox is in spite of having huge gap, the existing
fruits and vegetables are processed, while in the capacity is under-utilized and the units operate
US, the Philippines and China as high as 65%, below the capacity. Further, the cold storages are
78% and 23% are processed. This offers a huge concentrated only in a few states. Uttar Pradesh
untapped food processing market in India and and West Bengal account for more than 65% of
calls for government initiatives to develop cold the total existing capacity, while other states lack
chain infrastructure. The potential and scope for investments in private sector.
addressing the needs of this sector are huge and
the following data highlight/substantiate this. 2.13.5 Government Initiatives
• 11% of world’s total vegetables production • Accorded infrastructure status to the cold
is accounted by India but the share in chain sector in the Union Budget of 2012
global vegetable trade is only 1.7%. • Viability Gap Funding (VGF) scheme for
• 140 million MT of milk is being produced in public-private partnerships for setting up
the country per annum, but cold storage cold chain projects
capacity is only available for 80,000 - 90,000 • Excise duty exemptions for air condition
MT of milk. equipment and refrigeration panels and
• 20%-30% of fish production is annually also conveyor belts used in cold stores,
wasted in India. warehouses and wholesale markets.

18 | Sectoral Paper on Plantation and Horticulture


• Existing incentives include access to Chain and value Addition Scheme as a
external commercial borrowings, 100 per Central Sector scheme providing capital
cent FDI and extending capital investment grant for establishing cold chain projects.
subsidy / capital grant through Ministry of More than 180 cold chain projects have
Agriculture (under MIDH) and Ministry of been sanctioned by the Ministry under
Food Processing Industries. this Scheme. Under Kisan Sampada Yojana
• Establishing separate Warehouse (KSY), the GoI has plans to support about
Infrastructure Fund with a corpus of ` 5000 150 cold chain projects per year during
crore during each of the years of 2013- the period up to 2019-2020. A budget
14 and 2014-15, from which direct loans allocation of ` 1650 crore has been made
could be extended by NABARD to State for this Scheme under KSY.
Governments, state-promoted agencies,
public and private sector entities for 2.13.6 Challenges & mitigating measures
establishing cold stores and cold chain Various challenges being encountered in the
infrastructure projects. promotion of cold chain infrastructure and
• The Ministry of Food Processing Industries possible measures for mitigation are indicated
(MOFPI) has been implementing a Cold below.

Table-4: Challenges in promoting Cold Chain infrastructure and Mitigation


Product States & Potential districts/areas
Cold chain infrastructure is in short supply in Ø Government support in power availability
India and integrated demand based planning
Negligible reefer (cold truck) transport for Ø Arranging hubs at the state level linked to
perishable inter-city movement cold storage centers at major cities & in
Commercially unviable, huge investment and turn fed by farm gate produce
power consumption
Skewed cold chain capacity across states Ø Emphasizing on industry and academia
Shortage of skilled manpower linkage and creating on job training
modules

Sectoral Paper on Plantation and Horticulture | 19


3. Export Prospects
for Plantation &
horticulture produce

20 | Sectoral Paper on Plantation and Horticulture


Total export earnings from horticulture sector
covering fruits, vegetables, flowers and
processed fruit and vegetable products was Fresh Vegetables 31%
` 14847 crore during the year 2014-15, apart
from annual earnings of about ` 25000 crore Processed Fruits & Juices 24%
from exports of tea, coffee, cashew nuts and
Fresh Fruits 21%
spices. The sector contributes about 30% of
exports from agriculture. The products-wise Processed Vegetables 12%
exported quantity is given in chart below:
Cocoa Products 6%
During 2016-17, India exported 6.35 lakh MT of
Floriculture 3%
fresh fruits, 4.79 lakh MT of processed fruits &
juices, 29.83 lakh MT of fresh vegetables Fruits / Vegetable Seeds 3%
and 1.66 lakh MT of processed vegetables. There
is a good potential increasing the exports of fresh
fruits and vegetables and processed products.

Sectoral Paper on Plantation and Horticulture | 21


4. Key Growth Sectors
under Plantation &
Horticulture
4.1 Opportunities for growth of Horticulture

4.2 Region specific growth centres/activities

22 | Sectoral Paper on Plantation and Horticulture


4.1 Economic liberalization opened up a plethora sector activities. This global export opportunity,
of opportunities for the growth of horticulture in coupled with growing domestic demand for
the country. The agro climatic regions, which in traditional as well as high value foods offers
other parts of the world are restrictive, are diverse immense potential for growth of the sector. Some
in India, favoring a wide range of horticulture of the important activities include:

Expanding area under Fruits • Growing domestic demand for fruits and vegetables
and Vegetables • Potential for diversification of Agriculture though commercial horticulture
• Huge potential for export

Replanting and Rejuventaion • Large area under fruit crops and plantation crops replanting /rejuvenation

Dryland Horticulture • Tool for sustainable development and climate change adaptation
• Huge potential for promoting as mixed farming

Protected Cultivation • High value vegetables for domestic and export markets (off-season and exotic vegetables)
• Flower / ornamental crops for domestic and export markets,
• Seed production/Hi-tech nurseries
• Potential for peri - urban horticulture enterprises

Plantation crops and Spices • Productivity improvement though rejuvenation and replanting
• Quality improvement
• Promoting small growers collectives/organization
• Promoting organic spices and beverage crops

Contract Farming/Supply • For potentials crops like Gherkins, Potato, herbs , exotic vegetables
Chain management • Promoting market oriented production
• Promoting growers collectives
• Improve supply chain and value chain/promote value addition

Medicinal and Aromatic Crops • Potentials for commercial cultivation of medicinal plants and aromatic crops
• Potentials to cultivate as mixed crops in plantations and fruit orchards
• Linking with user industries and promoting value addition

Sectoral Paper on Plantation and Horticulture | 23


4.2 Region specific growth Kerala: Replanting/rehabilitation of traditional
centres/activities plantation crops (both in organized and small
4.2.1. Southern Region growers sectors) viz. rubber, cardamom, coffee
Andhra Pradesh: Dryland horticulture, high and tea; homestead farming models, precision
density planting technology (along with micro farming/ polyhouse cultivation of vegetables
irrigation) for major horticulture crops, including such as capsicum (green/coloured), broccoli,
mango, guava, aonla, citrus, production of baby corn, leek, summer squash, lettuce, celery,
perennial vegetables on pandals, commercial etc. in Wayanad, Idukki and other hilly tracts;
nurseries for fruits, vegetables and ornamental flower crops, especially tropical orchids and
plants, traditional flowers, investments in critical Anthurium, minor fruit crops like rambutan,
infrastructure in value chain of perishables like mangosteen, avocado etc.) in suitable areas.
sorting, grading & packing facilities, refrigerated
transport, storage, etc. and integrated farming Karnataka: High density planting technology
models. (along with micro irrigation) for major
horticulture crops, including mango, guava,
Telangana: High density planting technology grape, citrus, replanting of senile and low
(along with micro irrigation) for major productive coffee plantations; commercial
horticulture crops, including mango, guava, nurseries for fruits, vegetables and ornamental
custard apple, grape, papaya, commercial plants, traditional flowers, high value cut flowers,
nurseries for fruits, vegetables and ornamental Floriculture Parks near Bengaluru, polyhouse
plants, traditional flowers, investments in critical production of high value vegetables, exotic
infrastructure in value chain of perishables. vegetable (coloured capsicum, cherry tomato,
etc.), critical infrastructure in value chain of
Tamil Nadu: High density planting technology perishables like sorting, grading, packing
(along with micro irrigation) for major facilities; refrigerated transport, storage, etc.,
horticulture crops, including mango, guava, integrated farming models.
aonla, citrus, replanting/ rehabilitation of
traditional plantation crops (both in organized 4.2.2 Eastern Region
and small growers sectors) viz. rubber, coffee Odisha: Horticulture based mixed farming, betel
and tea; commercial nurseries for fruits, vine, commercial nurseries, high value crops
vegetables and ornamental plants, traditional under protected cultivation (coloured capsicum
flowers, high value cut flowers, investments in and cut flowers), mushroom production, and
Horticulture and Floriculture Parks (in Hosur and post-harvest infrastructure.
Krishnagiri districts), polyhouse production of
high value vegetables, exotic vegetable (lettuce, West Bengal: Cultivation of fruit crops (mango,
broccoli) and fruit (strawberry) production in pineapple, litchi, citrus), plantation crops (betel
hilly areas like Udhagamandalam, upscaling of vine, cashew), commercial floriculture especially
precision farming concept in major vegetables high value cut flower production (gerbera,
and banana growing belts, critical infrastructure gladiolus, anthurium, carnation, etc.) for
in value chain of perishables like sorting, grading domestic and export markets; exotic vegetable
& packing facilities, refrigerated transport, production in low cost green houses, medicinal
storage, etc. and integrated farming models. and aromatic crops including processing,

24 | Sectoral Paper on Plantation and Horticulture


commercial nurseries for fruit, ornamental Himachal Pradesh – Nuts (walnut,
plants and vegetables. almond), off-season vegetables, ginger, kiwi,
sea buckthorn, etc.
Bihar: Area expansion under traditional fruit
crops like litchi, mango, commercial nurseries Jammu Kashmir – Nuts in Jammu & Kashmir
for fruits and vegetables, bee keeping and honey division, saffron in Kashmir division & apricot
processing facilities, integrated farming, critical and seabuckthorn in Ladakh region.
infrastructure in value chain for major perishable
crops. Uttarakhand – Off season vegetables in all valley
regions, ginger, flowers under open cultivation
Jharkhand: High density planting of fruit crops, (gladiolus) and in polyhouses (carnation,
rainfed horticulture, protected cultivation, gerbera and liliums), medicinal and aromatic
organic farming, cut flower cultivation, crops and peach.
cultivation of hybrid vegetables, commercial
nurseries for fruits and vegetables, commercial 4.2.5 Central Region
floriculture (rose, gladiolus, tuberose, carnation, Uttar Pradesh – Dryland Horticulture with
lilies), medicinal and aromatic crops, including ber, pomegranate, mango, aonla, and bael in
post harvest processing and bee-keeping. Bundelkhand region, mango (in Saharanpur,
Lucknow), guava (in Allahabad region), aonla
4.2.3. North Eastern Region (Pratapgarh), aromatic crops like mint (Rampur,
Replantation/rejuvenation of old tea plantations Moradabad), rose for extraction of essential oils,
in the organized sector (Assam, Tripura), rubber gulkand, etc. (Aligarh, Kannauj).
production and processing (in areas identified
by Rubber Board), high density planting in Madhya Pradesh – Aromatic crops, Horticulture
pineapple, location specific homestead / corridors (Bhopal-Indore Corridor) and hubs
integrated farming models, fruits like kiwi (around Jabalpur, Gwalior, Ratlam, Jhabua,
(Arunachal Pradesh); passion fruit (Manipur, Chhindwara and Chattarpur).
Mizoram), commercial production of exotic
flowers like orchids, anthurium, carnations, Chhattisgarh – Medicinal and aromatic crops
gladiolus, lilium, gerbera and foliage plants; and sericulture
production of spices like black pepper (mainly
in Assam), large cardamom (more specifically 4.2.6 Western Region
in Sikkim and Darjeeling region), turmeric Gujarat – Hi-tech floriculture and mango
(Meghalaya, Tripura, Nagaland and Mizoram), in Ahmedabad, Banaskantha, Gir Somnath,
ginger (Assam, Meghalaya, Mizoram and Junagadh, Mehsana, Navsari, Patan and Valsad;
Arunachal Pradesh), capsaicin and oleoresin banana in Navsari and Valsad; and Dates in
production from unique local varieties like Bird Kutch region.
Eye chilli (which has high capsaicin content of
1%, compared to 0.5 to 0.6% in other varieties) Maharashtra – Grapes in Nasik, Sangli, Pune;
and Naga chilli (Manipur, Meghalaya, Arunachal pomegranate in Nasik, Ahmednagar and
Pradesh, Mizoram, Tripura, Nagaland); Solapur; banana in Jalgaon; citrus in Nagpur,
potential for culinary herbs (Rosemary, Amravati, Aurangabad and Nanded; cashew in
Thyme, Parsley and Oregano), mushrooms and Sindhudurg; mango in Ratnagiri, Aurangabad,
bamboo shoots. commercial floriculture in Pune; sericulture in
Bhandara, Chandrapur & Gadchiroli, minor fruit
4.2.4 Northern Region crops like kokum in Konkan region.
Punjab – Honey in Patiala and Ludhiana; Kinnow
in Hoshiarpur, Ferozepur, etc. Rajasthan – Oranges in Jhalawar, date palm
in Jodhpur; aonla in Dungarpur; pomegranate
Haryana – Protected cultivation of vegetables, in Sikar, Hanumangarh, Bundi; medicinal and
button mushroom, peri-urban vegetable aromatic crops (MACS) such as isabgol, henna,
production in Sonepat, Panipat, Gurgaon, aswagandha, seed spices in many districts,
Rohtak and Jhajjar. including Ajmer.

Sectoral Paper on Plantation and Horticulture | 25


5. Climate Change
& Horticulture2

26 | Sectoral Paper on Plantation and Horticulture


Climate change is the global phenomena and Horticulture, with approximately 28% of GDP
greatest threat to food and nutritional security of contribution in agriculture from cultivated
growing population and also existence of human area of 8% in India, is threatened with serious
kind. An alarming increase in the atmospheric consequences in all aspects of its production,
concentration of greenhouse gases, such as Carbon protection as well as quality and processing.
dioxide (CO2), Methane (CH4), Nitrous oxide (N2O) The ease with which a crop or a variety can
and chlorofluorocarbons (CFCs) due to human be changed/replaced for food crops in the
activities is causing global warming. An increase climate change scenario is not the same for
of 70% in concentration of greenhouse gases is horticultural crops, particularly for the orchards
observed in last 35 years. As a result, average global and plantation crops, which require heavy
temperature has increased by about 1°C in past 137 monetary input and a long time to establish.
years and is projected to rise by 1.4 to 5.8°C by 2100. Challenges ahead are to have sustainability
It is now well established that the changing climate and competitiveness, to achieve the targeted
worldwide will bring about higher temperatures, production to meet the growing demands in the
changes in rainfall patterns and higher levels of environment of declining land, water and threat
atmospheric CO2, ultimately affecting the output of climate change, which needs climate-smart
of agriculture and allied sector. As per Climate Risk horticulture interventions which are highly
Index 2015, India is one of the four countries which location-specific and knowledge-intensive
are likely to be severely affected by the impact of for improving production in the challenged
climate change. environment.

2
[Sources: Datta. S (2013) International Journal of Science, Environment and Technology, Vol. 2, No 4;
Malhotra S K (2017) Indian Journal of Agricultural Sciences 87 (1); Singh H C P et.al (2013) Climate
-Resilient Horticulture: Adaptation and Mitigation Strategies, Springer publication, New Delhi.

Sectoral Paper on Plantation and Horticulture | 27


Impact on horticulture crops
To quantify the impacts of climate change
on horticultural crops, we need detailed
information on physiological responses of the
crops, effects on growth and development,
quality and productivity. The climate change will
have impact on horticulture and a few examples
are as under:
i. Production timing will change due to rise
in temperature. Due to rise in temperature,
photo periods may not show much
variation. As a result, photosensitive crop
will mature faster.
ii. The winter regime and chilling duration will lead to fruit cracking and burning in litchi.
reduce in temperate regions affecting the Excessively high temperatures for extended
temperate crops. periods of time in grapes generally result in
iii. Pollination will be affected adversely delayed fruit maturation and reduction in
because of higher temperature. Floral fruit quality. Specific chilling requirements of
abortion, flower and fruit drop will occur pome and stone fruits will be affected hence
frequently. dormancy breaking will be earlier. On the other
iv. The requirement of annual irrigation will hand, high temperature and moisture stress
increase and heat unit requirement will be increase sunburn and cracking in apples,
achieved in much lesser time. apricot and cherries.
v. Coastal regions can expect much faster
percolation of sea water in inland water Studies have indicated that in Shimla district in
tables causing more salinity. Himachal Pradesh at relatively higher altitude
orchards have been replaced from high-chilling
Effect on Fruit crops requiring apple cultivars of apple (like Royal
The extreme weather events of hot and cold Delicious) to low-chilling requiring cultivars and
wave conditions have been reported to cause other fruit crops like kiwi, pear, peach and plum
considerable damage to many fruit crops. and vegetables. In mid hills of Shimla district,
Delay in monsoon, dry spells of rains, and trend is to shift from apple and potato cultivation
untimely rains during water stress period, sub- totally. It is corroborated by declining trend in
optimal temperatures during flowering and snowfall and apple productivity in Himachal
fruit growth, hailstorms are some of the most Pradesh. The production of apple has fallen
commonly encountered climatic conditions from 10.8 to 5.8 tons/ ha. Thus in replanting
experienced by the fruit growers over the past orchards and plantations over the next decade,
decade or so. Most significant effects of climate selection of lower-chilling requiring types
change on mango include early or delayed may be advisable.
flowering, multiple reproductive flushes and
variation in fruit maturity, abnormal fruit set Effect on vegetable crops
and transformation of reproductive buds into Climatic changes will influence the severity
vegetative ones. The climate change increases of environmental stress on vegetable crops
the atmospheric temperature and change of also. Vegetables being succulent are generally
rainfall pattern, as a result, banana cultivation sensitive to environmental extremes and high
may suffer from high temperature, soil moisture temperature, limited and excess moisture
stress or flooding / water logging. Due to rise stresses are the major causes of low yields.
in temperature, citrus and grapes may mature High temperatures can cause significant
earlier by about 15 days. Untimely winter losses in tomato productivity due to increased
rains promote vegetative flushes in citrus flower drop, reduced fruit set, and smaller and
instead of flowering flushes while a dry spell lower quality fruits. The duration of onion gets
during flower emergence and fruit set affects shortened due to high temperature leading
flower initiation and aggravates incidence of to reduced yields. Cauliflower performs well
pest. Increase in temperature at maturity will in the temperature range of 15-25°C with high

28 | Sectoral Paper on Plantation and Horticulture


humidity. Though some varieties have adapted Effect on Plantation and Spice
to temperatures over 30°C, most varieties are crops
sensitive to higher temperatures and delayed Consecutive drought in India reduced the
curd initiation is observed. The quality of coconut production by about three lakh nuts/
horticultural commodities is affected by heat year for four years. Productivity loss was to
and water stresses. In onion, temperature the tune of about 3500 nuts/hectare/year.
increase above 40°C reduces bulb size. In potato, Cashew, which is mostly grown under rainfed
reduction in marketable grade tuber yield to conditions, is vulnerable to climatic variability
the extent of 10-20% is observed due to high and drought conditions caused due to shifts in
temperature. In cucumber, low temperatures rainfall pattern and inter seasonal variability.
favour female flower production, which is Studies conducted on ‘Impact of climate change
desirable and high temperatures lead to in cashew’ at Directorate of Cashew Research,
production of more male flowers. Puttur, Karnataka indicated that the rainfed
cashew crop is highly sensitive to changes in
Water stress caused yield losses in the range of climate and weather vagaries, particularly
26% in onion, 30-45% in tomato and 50-60% in during reproductive phase. Cashew requires
chilli. Plant sensitivity to salt stress is reflected relatively dry atmosphere and mild winter
in growth reduction, decreased photosynthesis, (15-20°C) coupled with moderate dew during
loss of cellular integrity, tissue necrosis, and night for profuse flowering. High temperature
potentially death of the plant. (>34.4°C) and low relative humidity (<20%)
during afternoon causes drying of
Most of the vegetable crops are highly sensitive flowers, resulting in yield reduction.
to flooding due to reduction in oxygen in the Unseasonal rains and heavy
root zone and genetic variation with respect to dew during flowering and
this character is limited. Onion is sensitive to fruiting period aggravated
flooding during bulb development with yield the incidence of pests and
loss up to 30-40%. The severity of flooding diseases. All these situations
symptoms increases with rising temperatures; resulted in reduction yield
rapid wilting and death of tomato plants is up to 50 to 65%.
usually observed following a short period of
flooding at high temperatures. The response of Cocoa based agro forestry
plants to environmental stresses depends on systems are credited
the developmental stage and the length and for stocking significant
severity of the stresses. amounts of carbon and
hence have the potential to
During the last 40-50 years, air pollution level mitigate climate change. Carbon
increasing at an alarming rate in the developing stocks in shaded agro forestry
countries and causing potential threat to the systems with perennial crops such
crop production. Sulphur dioxide, nitrogen as coffee, and cocoa may vary between
oxide, hydro fluoride, ozone and acid rain are the 12 and 228 Mg/ha and could help to mitigate
primary air pollutant. Ozone has adverse effect climate change.
on vegetable production in terms of reducing
growth, yield and quality. Risk of the air pollution A study conducted at Indian Institute of Spices
is more when vegetable crops grown close Research (IISR), Calicut using GIS models has
to the densely populated areas. Air pollution shown that many areas presently suitable for
significantly decreased the yield upto more spices would become unsuitable in another
than 50 percent in case of cabbage, cauliflower, 25 years. There would be new areas which are
knol khol, broccoli, lettuce, radish, etc. Many presently unsuitable, become highly suitable for
vegetable crops namely tomato, water melon, cultivation of spices.
potato, squash, cantaloupe, peas, carrot, beet,
turnip, etc are more susceptible to air pollution The studies revealed significant changes in
damage. Yield of vegetable can be reduced by weather elements and have had significant
5-15 percent when daily ozone concentrations impact on the production of spices crops such
reach to greater than 50 ppb. as small cardamom, seed spices and black

Sectoral Paper on Plantation and Horticulture | 29


pepper. Indian pepper production has been moisture stress conditions. These available
declining rapidly in the past 10 years due to technologies could be integrated and made use
effect of climate change. From nearly one lakh to reduce the adverse impacts of climate change
ton of annual production, it has come down by and climate variability. Further emphasis need to
more than 50%. In general due to increase in be put on developing the crop, agro-ecological
maximum and minimum day temperature and region and season-based technologies to
decreasing the annual rainfall the productivity reduce the impacts and increase the resilience
showed decreasing trend in most of the black of horticultural production systems to climate
pepper growing areas of India. Pepper in change. Resistant root stocks and varieties for
Karnataka is grown mainly in the irrigated various fruit crops tolerant to stresses have
coffee plantations and is seen to be less been identified and being used to combat
monsoon sensitive. Some of the saffron farmers climate change.
who traditionally relied on rainwater are now
looking at irrigation measures to save their rare In addition to employing modified crop
and labour intensive crop. management practices, the challenges posed by
climate change could be tackled by developing
Effects on flower crops tolerant varieties. Several institutions have
Melting of ice cap in the Himalayan regions evolved hybrids and varieties, which are tolerant
will reduce the chilling requirement for the to heat and drought stress conditions, which have
flowering of many of the ornamental plants like potential to combat impact of climate change.
Rhododendron, Orchids, Tulips, Alstromeria,
Magnolia, Saussurea, Impatiens, Narcissus, etc. Production system management
Some of them will fail to bloom or flower with The emphasis should be on use of recommended
less abundance while others will be threatened. production systems for improved water use
Flowers do not open up fully in tropical orchids efficiency and to adapt to the hot and dry
wherever temperatures fall below 15°C. High conditions. Strategies like changing sowing
temperature leads to flower bud drop and or planting dates in order to combat the likely
unmarketable spikes in tropical orchids when increase in temperature and water stress
temperature remains > 35°C. periods during the crop-growing season should
be adopted. Providing irrigation during critical
Commercial production of flowers, particularly stages of the crop growth and conservation of
grown under open field conditions, will be soil moisture reserves are the most important
severely affected leading to poor flowering, interventions. Crop management practices
improper floral development and colour. In like mulching with crop residues and plastic
chrysanthemum, which is a short-day plant, mulches help in conserving soil moisture. In
flowering round the year in open field condition some instances excessive soil moisture due
is not possible. Low temperatures below 190C to heavy rain becomes major problem and it
shut down flowering in jasmine and lead to could be overcome by growing crops on raised
reduction in flower size. beds. Production of vegetables could be taken
up using clear plastic rain shelters, which can
Adaptation strategies reduce the direct impact on developing fruits
Potential impacts of climate change depend not and also reduce the field water logging during
only on climate per se, but also on the system’s rainy season. Planting of vegetables on raised
ability to adapt to change. The potential depends beds during rainy season will increase the yield
on how well the crops adapt to the concomitant due to improved drainage. More heat tolerant
environmental stresses due to climate change. cultivars are required under climate change
Depending on the vulnerability of individual conditions and these cultivars need to perform
crop in an agro-ecological region and the at par with the conventional varieties under non-
growing season, the crop based adaptation stress conditions.
strategies need to be developed, integrating all
available options to sustain the productivity. Mitigation strategies
The scientists have already developed several Climate change is a reality and there is
technologies to cope with extreme events like enough evidence to show that the emission of
high temperature, frost and limited and excess greenhouse gases has caused global warming

30 | Sectoral Paper on Plantation and Horticulture


and associated climate change. In addition to productivity in the world. Likewise, chilling will
adapting the horticultural production systems to not be enough to induce flowering in apple and
adverse impacts of climate change, Horticulture high temperature in the mid hill agro-climatic
can considerably contribute to the mitigation. conditions may cause desiccation in pollen,
The improved crop management practices shrivelling of fruits resulting in reduced yield and
can considerably reduce the emission of more failure of the crops. These are the likely
greenhouse gasses due to reduced dependence impact which causes the concerns. But, there
on energy needs and intensification of perennial are innumerable examples to understand that
horticultural crops will help in sequestering climate has been changing and the technologies
carbon dioxide from the atmosphere. Mitigation have helped in mitigating the problem. Salinity
efforts through carbon sequestration help to and alkalinity were a great problem for successful
reduce the adverse impacts of climate change. growing of grape but identification of suitable
The information about carbon sequestration rootstocks has made it highly productive. If
potential of fruit trees is scanty though they we look to potato, tomato, cauliflower and
contribute significantly. cabbage, these are thermo-sensitive crops and
were productive only under long day conditions
Technological changes for in temperate climate. But, development of heat
mitigating effect tolerant cultivars and adjustment in production
Grape is a temperate fruit which has been system management has made it possible with
largely grown under cool climate, be it for very high productivity, even in subtropical and
table purposes or for wine-making. But the mild subtropical and warmer climates. These
technological change in plant architecture and indicate that through innovative research in
production system management has helped to various horticultural crops, threat of climate
produce grape in tropical situation with highest change could be converted into the opportunity.

Sectoral Paper on Plantation and Horticulture | 31


6. Government Programmes
and interventions for
Horticulture Development
6.1 Government Programmes

6.2 Mission for Integrated Development of


Horticulture

6.3 National Horticulture Board (NHB)

6.4 National Medicinal Plants Board (NMPB)

6.5 National Mission on Oilseeds and Oil Palm


(NMOOP)

6.6 Centres of Excellence

32 | Sectoral Paper on Plantation and Horticulture


6.1 Several development programmes are Horticulture Board), Coconut Development
under implementation which aims at integrated Board (CDB) and Central Institute for
development of horticulture crops. These Horticulture (CIH), Nagaland. MIDH is considered
include: to be the major development and promotional
• Mission for Integrated Development of intervention aimed at holistic development of
Horticulture (MIDH) horticulture sector in the country.
• National Horticulture Board (NHB)
programmes focusing on hi-tech 6.3 National Horticulture Board
horticulture and post-harvest management (NHB)
infrastructure, including cold storages and The main objectives of the NHB are to improve
reefer vans. A majority of the schemes of integrated development of horticulture
NHB are credit-linked. industry and to help in coordinating, sustaining
• National Medicinal Plants Board (NMPB) the production and processing of fruits and
which coordinates with all matters relating vegetables. Detailed objectives of the Board are
to medicinal plants and support policies as under:-
and programs for growth of trade, export, (i) Development of hi-tech commercial
conservation and cultivation. The Board horticulture in identified belts and make
works under the Ministry of Ayurveda, such areas vibrant with horticultural
Yoga & Naturopathy, Unani, Siddha & activity, which in turn will act as hubs for
Homeopathy (AYUSH). development of horticulture.
• National Mission on Oilseeds and Oil Palm, (ii) Development of modern post-harvest
which includes promotion of oil palm management infrastructure as an integral
cultivation in select areas. part of area expansion projects or as
• National Bee Board (NBB) for promoting common facility for cluster of projects.
bee keeping as a means to improve crop (iii) Development of integrated, energy
productivity. efficient cold chain infrastructure for fresh
• Setting up of dedicated “Centres of horticulture produce.
Excellence” for identified crops across (iv) Popularization of identified new
different regions to promote hi-tech technologies/tool/techniques for
horticulture enterprises through commercialization / adoption, after
demonstration, training & capacity carrying out technology and need
building, technology transfer and assessment.
handholding support. (v) Assistance in securing availability of quality
• Programmes / promotional schemes of planting material by promoting setting up
commodity boards like Tea Board, Coffee of scion and root stock banks / mother plant
Board, Rubber Board, Spices Board, for the nurseries and carrying out accreditation /
respective crops. rating of horticulture nurseries and need
based imports of planting material.
6.2 Mission for Integrated (vi) Promotion of Farm Mechanization in
Development of Horticulture Horticulture through demonstration and
6.2.1 With a view to giving focused attention its uses at farmers field level to reduce
for horticultural development in the country, labour cost and increase the productivity
Government of India has launched a Centrally of Horticulture crops.
Sponsored Scheme namely Mission for (vii) Promotion of applied R & D for
Integrated Development of Horticulture (MIDH) standardizing post-harvest management
for the holistic growth of the horticulture sector protocols, prescribing critical storage
covering fruits, vegetables, root & tuber crops, conditions for fresh horticulture produce,
mushrooms, spices, flowers, aromatic crops, bench marking of technical standards for
coconut, cashew, cocoa and bamboo. The cold chain infrastructure etc.
Mission programmes are implemented during XII (viii) Transfer of technology to producers/
Plan by subsuming interventions under National farmers and service providers such as
Horticulture Mission (NHM), Horticulture Mission gardeners, nurserymen, farm level skilled
for North East and Himalayan States (HMNEH), workers, operators in cold storages,
NBM (National Bamboo Mission), NHB (National work force carrying out post-harvest

Sectoral Paper on Plantation and Horticulture | 33


management, including processing of age of 5 years. Therefore, there is an urgent
fresh horticulture produce and to the need to intensify efforts for area expansion
master trainers. under oil palm to enhance palm oil production
in the country.
6.4 National Medicinal Plants
Board (NMPB) Efforts of India in promoting Oil Palm
i. NMPB is implementing a Central Sector cultivation
Scheme for Conservation, Development In view of the importance and significance of
and Sustainable Management of Medicinal oil palm cultivation, a Technology Mission on
Plants. The main objectives of the scheme Oilseeds & Pulses (TMOP) has been taken up in
are as follows: 1991-92 in the potential states. A comprehensive
ii. Promote in situ conservation of medicinal Centrally Sponsored Scheme Oil Palm
plants which are important to the AYUSH Development Programme (OPDP) was taken up
and Folk systems of medicine. during VII and IX Plans. During the X and XI Plans,
iii. Promote ex situ conservation by supporting GoI had provided support for oil palm cultivation
such programs in rural/ degraded forest/ under Centrally Sponsored Integrated Scheme
public/non-public/institutional lands/ of Oilseeds, Pulses, Oil Palm and Maize
urban & peri-urban lands and waste lands. (ISOPOM). To boost oil palm cultivation, GoI had
iv. Promote R&D in all aspects of medicinal implemented a Special Programme on Oil Palm
plants, development of agrotechniques, Area Expansion (OPAE) under RKVY from the
post-harvest management, storage year 2011-12 to 2014-15. During the XII Plan, a
and processing, developing molecular new National Mission on Oilseeds and Oil Palm
characterization tools etc. and promotion (NMOOP) has been launched under which Mini
of IT. Mission-II (MM-II) is dedicated to oil palm area
v. Mapping, upgrading, modernizing of expansion and productivity increases. MM-II
medicinal plants supply chain and of NMOOP is being implemented in 12 States
creating/ optimizing market linkages and viz. Andhra Pradesh, Telangana, Chhattisgarh,
value addition. Tamil Nadu, Kerala, Gujarat, Karnataka, Odisha,
vi. Quality standardization, Good Collection Mizoram, Nagaland, Assam and Arunachal
Practices (GCPs) and Good Agricultural Pradesh. The objective of the Scheme is to
Practices (GAPs) for medicinal plants. bring additional 75,000 hectare area under
vii. Promote mainstreaming of medicinal oil palm cultivation through area expansion
plants in climate change mitigation approach in the country during two years viz.
strategies & promote regeneration/ 2017-18 and 2018-19.
afforestation of medicinal plant tree
species towards carbon sequestration. The strategies for oil palm are as under:
i. Special focus for promotion of oil palm in
6.5 National Mission on Oilseeds all NE states.
and Oil Palm (NMOOP) ii. To meet the planting materials requirement
With per capita consumption of vegetable oils for new plantation both from indigenous
at the rate of 16 kg/year/person for a projected and imported sources.
population of 1276 million, the total vegetable iii. Support to farmers for planting materials,
oils demand is likely to touch 20.4 million MT by inter cropping & maintenance cost for
2017. A substantial portion of our requirement gestation period (4 years), bore well, drip
of edible oil is met through import of palm oil irrigation, harvesting tools.
from Indonesia and Malaysia. It is, therefore, iv. Capacity building of farmers and extension
necessary to exploit domestic resources to officials.
maximize production to ensure edible oil security v. Assured procurement of fresh fruit bunches
for the country. Oil Palm is comparatively a new (FFBs) through processors.
crop in India and is the highest vegetable oil vi.  Supporting oil palm growers through
yielding perennial crop. With quality planting Market Intervention Scheme (MIS) to
materials, irrigation and proper management, provide remunerative prices of FFBs as and
there is potential of achieving 20-30 MT Fresh when international CPO price fall below
Fruit Bunches (FFBs) per ha after attaining the $ 800 per MT.

34 | Sectoral Paper on Plantation and Horticulture


Tree Borne Oilseeds (TBOs) like sal, mahua,
simarouba, kokum, olive, karanja, jatropha,
neem, jojoba, cheura, wild apricot, walnut, tung,
etc. are cultivated/grown in the country under
different agro-climatic conditions in a scattered
form in forest and non-forest areas as well as in
waste land /deserts/hilly areas. These TBOs are
also good source of vegetable oil and therefore
need to be supported for cultivation.

6.6 Centres of Excellence


Considering the need to promote horticulture,
Centres of Excellence (CoE) have been identified
for various horticultural crops which can be of
demonstrative effect for promoting horticulture.
Some of the active centres of excellence set up
are indicated below:

Table-5: State-wise Crop-specific Centres of Excellence


State Crop Location Technology demonstrated
Punjab Vegetables Khartarpur Hi tech nursery, open filed mulching, walking tunnels, drip
Irrigation, fertigation, net houses, poly houses cultivation
Citrus Khanaura, Hoshiyarpur Hi tech nursery, planting on ridges, spacing, grafting,
pruning, drip irrigation, fertigation, plant protection
Haryana Vegetables Karnal, Gharaunda Hi tech nursery, open filed mulching, walking tunnels, drip
Irrigation, fertigation, net houses, poly houses cultivation
Citrus and pomegran- Mangiana Hi tech nursery, planting on ridges, spacing, grafting,
ates pruning, drip irrigation, fertigation, plant protection,
trellising (Y shape)
Mango Ladwa Rejuvenation of senile orchards, Hi tech nursery, drip
irrigation, densification of the orchards
Rajasthan Pomegranates Bassi Hi tech nursery, planting on ridges, spacing, drip irrigation,
fertigation, plant protection, trellising (Y shape)
Citrus Kota Hi tech nursery, planting on ridges, spacing, grafting,
pruning, drip irrigation, fertigation, plant protection
Gujarat Vegetables Vadrad, Sabarkantha Hi tech nursery, open filed mulching, walking tunnels, drip
Irrigation, fertigation, net houses, poly houses cultivation
Maharashtra Citrus Nagpur Hi tech nursery, planting on ridges, spacing, grafting,
pruning, drip irrigation, fertigation, plant protection
Alphonso mango Dapoli, Ratnagiri Rejuvenation of senile orchards, Hi tech nursery, drip
irrigation, densification of the orchards
Kesar mango Aurangabad Rejuvenation of senile orchards, Hi tech nursery, drip
irrigation, densification of the orchards
Tamil Nadu Vegetables Reddiyar Chathram, Hi tech nursery, open filed mulching, Irrigation, fertigation.
Dindigul

GoI is also considering setting up of ‘centre of excellence’ in Jalandhar (Punjab), Baramati (Maharashtra) and Thiruvananthapuram
(Kerala) under Indo Dutch Cooperation project.

Sectoral Paper on Plantation and Horticulture | 35


7. Thrust areas / Hi-tech
horticulture enterprises for
development with credit
7.1 Credit linkages

7.2 Approach for augmenting


credit flow for P & H sector

36 | Sectoral Paper on Plantation and Horticulture


Considering the emerging opportunities, 7.2. Approach for augmenting
growth potential due to widening market credit flow for P & H sector
opportunities and relatively higher profitability, • Innovative credit products to cater to
the following activities are considered as the diverse credit needs of P & H sector activities.
thrust areas for promotion with institutional • Crop / activity specific Banking Plans /
credit support. Area Development Plans dovetailed with
Government Sponsored Programmes
i. Protected cultivation
(MIDH, NMOOP, etc.)
ii. Organic farming • Bringing more and more small holders
under high value horticulture production
iii. Precision farming
system through incentives and adopting
iv. Integrated Value chain financing group / cluster approach.
v. 
Integrated Cold chain infrastructure for • Interventions towards extension, training,
perishables capacity building and hand-holding support.
• Facilitation towards aggregation, sorting
vi. Fruit & Vegetable processing / grading and collective marketing for
ensuring remunerative price of their
7.1 Credit linkages: Since investments produce on sustainable basis
in these thrust areas are highly capital • Addressing gaps in critical infrastructure
intensive, with long gestation period, facilitating in post-harvest management through
institutional credit, therefore assumes investment by private sector and / or PPP
significance. Several of the interventions and mode.
incentives under the government programmes • Risk mitigation through integrated farming
discussed under foregoing paragraphs facilitate models, crop specific insurance products
enabling environment for investments in critical for better coverage and making insurance
and productive infrastructure and offer scope coverage as mandatory.
for convergence with credit plans of financial • Thrust on dry land horticulture by
institutions promoting drip/micro irrigation systems.

Sectoral Paper on Plantation and Horticulture | 37


8. Challenges

38 | Sectoral Paper on Plantation and Horticulture


By 2050, the population in the country is depleting groundwater resources, deterioration
expected to touch 2 billion by which time there in water quality, etc., is a challenge to be
will be pressure on supply of horticultural addressed in future. Even in good arable lands,
crops like fruits and vegetables to a tune of 450 problems of land and water degradation are
million tonnes (from the present level of about daunting challenges for sustaining productivity.
258 m MT). Taking the increasing demand for
processing (it is estimated that for every increase (iii) Post-Harvest Losses and Value-Addition
in the level of processing by 1%, the additional Horticultural crops are highly perishable. In the
demand for fruits and vegetables would be 2.5 Indian horticulture sector, substantial pre- and
to 3.0 million tonnes) and export demand, the post-harvest losses occur at different stages of
total estimated demand by 2050 is 540 m MT). handling, transport, storage, processing and
Thus, the challenge is to more than double the distribution of produce. Losses at pre- and post-
production of fruits & vegetables in about 3 harvest stages have been estimated at 30%.
decades period. On the other hand, the increase At present, there is a huge mismatch between
in demand is being / will be faced with several production capacity of fruits, vegetables,
challenges, as discussed briefly below: flowers and medicinal crops in the country, and
the infrastructure available for post-production
(i) Low Productivity distribution, storage and value-addition. The
One of the disquieting features of Indian biggest challenge is to devise means and take
horticulture is the low productivity of fruits, measures to reduce post-harvest losses in fruits
vegetables, flowers and medicinal crops. Among and vegetables, to maintain quality during
fruits, with the exception of banana and papaya, distribution and ensure safety of the produce for
average productivity is 12 MT/ha, much lower consumption.
than potential biological yields of fruit crops.
Similar is the case with vegetable crops, where, (iv) Changing Quality-Consciousness and
the average yield is 17 MT/ha. The reasons for Global Competition
low productivity can be attributed chiefly to Horticultural crops are powerhouses of essential
non-availability of quality planting material, nutrients and minerals required for nutritional
dwindling natural resources, resource-poor security. With increase in purchasing power
farmers, low adoption of modern technologies, of Indian population and with consumers
etc. The challenge is to enhance productivity by becoming increasingly health and quality
increasing factor productivity in all horticulture- conscious, it is imperative to ensure quality and
production inputs while sustaining it by adopting safe horticulture produce. Apart from this, a high
good agricultural practices and precision- demand for processed products of high quality
farming principles. is envisaged. Further, with the changing scenario
in world trade, we need to produce horticultural
(ii) Depleting Land-Resources and Degraded commodities of international standards. Non-
Production-Environment existence of appropriate quality monitoring
Indian agriculture is predominantly small mechanism for domestic market is a challenge
holders’ agriculture, as, over 82 per cent of the to be addressed.
holdings are small and marginal. The average
size of landholding declined from 2.28 ha in (v) Climate change
1970-71, to 1.55 ha in 1990-91 and, to 1.23 ha in Climate change is an important environmental
2005-06, with concurrent increase in the absolute issue of great concern that can affect the
number of operational holdings from about 70 horticulture sector immensely. The increase in
million to 129 million. If this trend continues, global average temperatures due to greenhouse
the average size of a holding in India would be gas emission could pose challenges like high
a measly 0.3 ha by 2050. As a result, there will be temperature stress during critical crop growth
increased pressure on land-use for horticultural stages, excess moisture stresses caused by
crops, which would pose greater challenge for extreme rainfall events, incidence of insect pest
increasing production to the levels expected. In and diseases and emergence of new insect pests
addition to this, management of a fragile natural and diseases. The high temperature situations
ecosystem with depleting organic matter and could cause water stress conditions due to
nutrient status in the soils, erratic monsoons, increased evapotranspiration, necessitating

Sectoral Paper on Plantation and Horticulture | 39


higher crop water needs. The seasonal (vi) Inadequate Market Linkage and Price
temperature changes could cause shifts in agro- Fluctuations
ecological regions and emergence of completely Establishing appropriate supply chain mechanism
new areas suitable for various horticultural and upgradation of market infrastructure facilities
crops. Thus, climate change will significantly for obtaining information on fluctuating prices
influence productivity, production and quality of poses a major threat for horticultural producers
horticultural crops. in realizing higher returns.

40 | Sectoral Paper on Plantation and Horticulture


9. Approaches

Sectoral Paper on Plantation and Horticulture | 41


To work on the challenges indicated above, the protection and post-harvest
following approaches may be the major ones management; integrated crop
that may be adopted. specific nutrient management.
f) Application of GIS / remote sensing
(i) For Enhancing Crop Productivity
for diagnosis of nutrient deficiency
a)  Consolidation and management of
horticultural genetic resources.
(iii) Enhancing the quality of Horticultural
b) Development of improved varieties/ Produce
hybrids through conventional a) Breeding for high nutritive, aesthetic
breeding and new technologies like & medicinal value, processing and
marker-assisted breeding, in vitro export quality.
techniques, transgenic technology,
b) Breeding varieties for improved shelf-
nanotechnology, etc., for abiotic and
life.
biotic stresses.
c) 
Technologies for production of
c) 
Application of Space Technology
organic fruits & vegetables.
for improving the biological yield
potential and productivity. d) 
Crop production management for
enhancing quality.
d) 
Agro-techniques for improved
productivity, canopy architecture and
(iv) Evolving Sustainable and Climate-
high density planting for efficient light
Resilient Technologies
interception and photosynthesis.
a)  Integrated horticulture-crop based
e) Development of efficient techniques farming systems by adapting climate
for production of quality seed/planting resilient technologies.
material of varieties and hybrids.
b) 
Phenotyping germplasm for abiotic
f) Maintenance breeding and supply of and biotic stress tolerance traits and
adequate quantities of breeder seed genetic enhancement for developing
and mother plant material. appropriate genotypes and rootstocks.
g) Multiplication and distribution of c) Genomic studies for better
quality seed and planting material of understanding of genetic variation in
improved varieties stress tolerance traits.

(ii) For Enhancing Crop Productivity (v) For Minimizing Post-Harvest Losses
through Efficient Resource Management a)  Integrating pre- and post-harvest
a) Enhancing crop productivity through protocols for minimizing postharvest
protected cultivation and vertical losses.
farming.
b) 
Value-addition and product
b) Breeding horticultural crops suitable diversification.
for protected cultivation and
mechanized farming. c) Utilization of by-products, residues
and horticultural waste for value-
c) 
Development of technologies for added food and feed products forging
aeroponics, hydroponics and soilless linkage with industry
culture.
d) Developing efficient water and (vi) Marketing
nutrient management systems a) Establishing efficient linkages and
including automated and pulsed developing appropriate strategies
micro-irrigation and fertigation. through alternate marketing
arrangements, market intelligence
e) 
Development of precision farming and price forecast.
techniques, farm mechanization
and energy management; b) 
Returns on investment and total
nanotechnology for crop production, factor-productivity studies.

42 | Sectoral Paper on Plantation and Horticulture


10. Doubling of
Farmers’ Income

Sectoral Paper on Plantation and Horticulture | 43


Doubling real income of Farmers by 2022-23 over the yield gaps, which in turn will
the base year of 2015-16, as perceived by the contribute to enhanced productivity
Government of India, requires annual growth of farming systems.
of 10.41% in farmers’ income. It is needless to
emphasize that Horticulture sector, especially (ii) Water and Agri-Input policies
vegetable and flower crops, play a major role a) Fertilizer subsidy and rationalizing
in this endeavour. The major sources of growth the NPK pricing for maintaining NPK
within agriculture sector are: ratio in the soil and better application
technologies to improve efficiency
(i) Improvement in productivity
and reduce fertilizer subsidy.
(ii) Resource use efficiency or saving in cost of
production b) Crop losses in India are huge and
estimates range from ` 90,000 to
(iii) Increase in cropping intensity
` 1.50 lakh crore annually. Pesticides
(iv) Diversification towards high value crops play an important role not only in
crop productivity, cost reduction
The National Round Table on Doubling Farmers’ and quality improvement but also
Incomes by 2022, organized by the Indian in protecting crops from pests and
Council of Agricultural Research (ICAR) has made diseases. The cost benefit ratio in
40 recommendations for increasing incomes of using pesticides is heavily in favour
farmers, divided into five factors, as under: of farmers. The Government however
needs to check flood of spurious
(v) Increasing incomes by improving productivity
pesticides in market by fly-by-night
(vi) Water and Agri-Input policies operators by regulating registrations,
strengthening quality enforcement
(vii) Integrated Farming System
and tackling corruption through
(viii) Better market price realization provisions of joint testing of samples.
(ix) Special Policy Measures
c) Farm Mechanisation in India has been
a story of tractorisation. Time has
Major interventions recommended/ identified come to promote efficient equipment
under the above factors are: and tools and small engine driven
tractors to address small farm
(i) Increasing incomes by improving requirements adequately.
productivity
a) Biotechnology to play critical role d) There is a need for integrated water
in crop and livestock production by use policy. India should critically
enhancing yields, nutritional profile, examine several ongoing initiatives
stress tolerance and crop protection and develop its country-wide system
for judicious and integrated use and
b) Improving crop productivity in rain fed management of water. A national
regions of India. Besides watershed commission on efficient water use in
management, constructing check agriculture should be established to
dams and farm ponds should be taken assess the various issues, regulatory
up in a mission mode for providing concerns, water laws and legislations,
life-saving irrigation for the crops. research, technology development
and community involvement. This will
c) Bridging yield gaps among the States. especially help resource-poor farmers
There is urgent need for developing a in the rainfed ecosystems, who
strategy document for assessing the practice less-intensive agriculture.
present trends of crop productivity
vis-a-vis the potential yield of major (iii) Integrated Farming System
crop systems, so that specific action a) Promotion of Integrated farming
plans can be taken up for bridging system approach involving synergic

44 | Sectoral Paper on Plantation and Horticulture


blending of crops, horticulture, dairy, (v) Special Measures
fisheries, poultry, etc. seems viable a) Through a nationwide crops
option to provide regular income competitiveness study, States’
and at site employment to small land profiling of crops and animal
holder, decreasing cultivation cost resources should be done,
through multiple use of resources and indexing them against national
providing much needed resilience for and global benchmarks
predicted climate change scenario. on cost, quality and
productivity parameters,
b) Promotion of intensive vegetable and their short, medium
production using improved varieties, and long term strategic
organic manure and drip irrigation, advantages. Based on
can provide five times higher annual this national indexing
income to the tune of ` 2 lakh per acre and estimation of market
(BAIF’s experience in Andhra Pradesh, demands in short, medium and
Karnataka and Maharashtra). log terms national crop planning
needs to be done.
(iv) Better market price realization
a) Revision of the APMC Act and b) Implementing ambitious Agribusiness
monitoring its implementation in Hubs Model, operating on a national
the states. Need to amend APMC platform and establishing 2.40 lakh
act by all the states to encourage multi-functional Agribusiness hubs
competitive marketing environment in all the Gram Panchayats of the
and participation in NAM. country. This will revolutionize the
farm economy and create jobs.
b) The launch of NAM requires easing of
norms of licensing to enable seamless c) ICT-based agricultural extension
participation of buyers from across brings incredible opportunities
the country, movements of goods and has the potential of enabling
without restriction, harmonization the empowerment of farming
of tax laws(including a uniform communities. Information
GST), standardization of grades and technology can support better crop,
recognition of electronic trades. fertilizer and pesticide use planning
as well as disease monitoring and
c) Agri infrastructure, storage systems prevention, both in crops and animal
and market yards needs to be husbandry, besides improving
strengthened. More multipurpose farmers’ operational and financial
market yard complexes, comprised management and to effectively
of warehouses, cold storage, farmers connect them with the markets for
service centre etc. needs to be set better price realisation.
up for farmers to directly participate,
especially online in NAM. d) Integrating all central and state
subsidies, instead of reducing
d) Reducing post-harvest losses costs of inputs, need to be targeted
by strengthening grain storage to empower farmers through
infrastructure, cool chain systems for infrastructure development in rural
perishables, post-harvest processing areas to promote agribusiness, food
and value addition, transport, processing, water management,
marketing, commerce and trade. soil health enhancement, seed
FPOs can play an important role, production and processing, custom
provided they are provided proper hiring, plant protection, dairy,
training. poultry, fisheries and enterprises etc.

Sectoral Paper on Plantation and Horticulture | 45


11. Role of NABARD
in development
of P&H Sector

46 | Sectoral Paper on Plantation and Horticulture


NABARD as an apex development bank is v. Capacity building and promoting producers
playing prominent role in development of organization/collectives
horticulture sector through credit. The strategic vi. 
Piloting innovations though technology
action plan for enhanced role of NABARD in transfer
development of Horticulture sector is given
below: vii. Promoting dry land horticulture through
watershed approach
i. Mapping potential and credit planning
viii. Climate resilient Horticulture and climate
ii. Enhancing the credit delivery and linkage change adaptation
of financial assistance schemes of GOI
ix. Marketing-building brands, industry
iii. 
Facilitating credit absorption at ground linkages etc.
level- Area Development Projects/banking x. Promoting food processing at all levels
plans, etc. (primary, secondary or tertiary)
iv. 
Capacity building of banks/ credit xi. R&D support for applied research and field
institutions demonstration of adoptable technologies

Sectoral Paper on Plantation and Horticulture | 47


12. Technological
Innovation in
Horticulture
Sector

48 | Sectoral Paper on Plantation and Horticulture


(I) Protected Cultivation of High High-Tech Seedling Production
Value Vegetables The disease free, healthy and high quality vegetable
Protected cultivation technology is very seedlings are produced under high tech green
advanced technology in the Horticulture which house in the soil-less media. Approximate 3 million
has the potential to increase the vegetable vegetable seedlings are produced on annual basis.
production from 5 to 6 times as compared to
open field conditions. High value vegetables
such as coloured capsicum, parthenocarpic
cucumber, cherry tomato, hybrid tomato are
highly recommended for this technology.

Vegetable Seedling Production under Hitech


Green House (HGH)

Institution where technology has been


Tomato Production in a Walk in Tunnel
developed and tested (piloted)
Centre of Excellence for Vegetables (An Indo-
Israel Project), National Highway – 1, Opposite
Liberty Shoe Factory, Gharaunda (Karnal),
Haryana, Pin Code – 132114, Tel. 01748-251621,
Email: [email protected]

Advantages and Efficacy of the technology


a) Increase in productivity from 5 to 6 times as
compare to open fields.
b) The quality of the produce is also superior.
c) Protection from biotic factors viz. insect
pest & birds.
Cucumber Production in a Walk in Tunnel d) Protection form Abiotic factors viz. rainfall,
low temperature etc.
e) The dream of doubling the farmers’ income
can be achieved by using this technology.
f) Saving of water and fertilization up to 70%.

Tentative Cost
a) HGH (High-Tech Green House/Fan & Pad
Type): Approx. ` 1465 per sq.m.
b) NVPH (Naturally Ventilated Poly House):
Approx. ` 850 per sq.m.
c) WIT (Walk-In-Tunnel): Approx. ` 600 per sq.m

Sweet Pepper Production in a Naturally d) AINH (Anti Insect Net House): Approx.
Ventilated Poly house (NVPHl) ` 600 per sq.m.

Sectoral Paper on Plantation and Horticulture | 49


Scope of transfer and up-scaling of the
technology
As the technologies have high potential of
increase in the quality and production, therefore
scope of transfer of the technology is very high.

(2) Solar Drier for Drying Fruits


and Vegetables
By converting solar radiation into heat energy,
fruits and vegetables can be dried successfully.
A unit run by M/S Jay Veer Foods Pvt. Ltd.
in Chanasma, Patan district, Gujarat has
successfully demonstrated the same.

Brief Description of the Technology


The technology basically involves heating the air
trapped between the solar panels and the black
surfaced rooftop and then blowing the heated air Solar Panels
into the driers for drying fruits and vegetables. The Black surfaced rooftop
unit can dry 250 kg per day. However, duration Layer between rooftop and panels where trapped
will vary depending on the commodity used. air is heated

Advantages of the Technology over


Conventional Sun Drying

Conventional Sun Drying Solar Drying


Requires larger area Large quantities can be handled in a
compact area
Time consuming Takes lesser Time
Highly labour intensive Less labour intensive
Quality deterioration and spoilage Produce gets dried without any
of the produce due to exposure to deterioration in quality and spoilage
moisture, wind, dust etc.

Tentative cost
The overall cost of the unit is ` 55 lakh that
includes the solar panels, blowers, inlet and
outlet chambers, driers, ducts and civil cost
for the building. The approx. cost of the broad
components is as under:

Component Cost (` lakh)


Solar panels 4.00
Blowers, Inlet and outlet chambers, dryers, ducts 13.00
Vegetables placed for Drying in the Drier
Civil cost for building 38.00

Scope of transfer/upscaling of the technology


The technology can be used for creating common
facility centres for drying of vegetables/ fruits in
major production centres of the State, especially
in tribal districts.

Source of information: Official Websites of Coffee Board, Tea Board, Rubber Board, National Horticulture Board, Spices Board, National
Medicinal Plants Board, Ministry of Agriculture and Co-operation,GOI, APEDA, Indian Institute of Horticultural Research, etc.

50 | Sectoral Paper on Plantation and Horticulture

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