2. Challenges in Vegetable Cultivation

2.1 Low Productivity

One of the distressing features of Indian horticulture is the low productivity of fruits, vegetables, flowers and medicinal crops. The average yield of vegetable crops is 17.00 t/ha. The reasons for low productivity can be attributed chiefly to non-availability of quality planting material, dwindling natural resources, resource-poor farmers, low adoption of modern technologies, etc. The challenge is to enhance productivity by increasing factor productivity in all horticulture-production inputs while sustaining it by adopting good agricultural practices and precision-farming principles.

2.2 Shrinking Availability of Land for Cultivation

Indian agriculture is predominantly small holders’ agriculture, as over 82% of the holdings are small and marginal. The average size of landholding declined from 2.28 ha in 1970-71 to 1.23 ha in 2005-06, with a concurrent increase in the absolute number of operational holdings from about 70 million to 129 million. Urbanisation continues to pose increased pressure on land-use for horticultural crops.

2.3 Degraded Production Environment

Indiscriminate and overuse of inputs and over-exploitation of natural resources for increasing production and productivity of crops has resulted in degraded soil health. Management of a fragile natural ecosystem with depleting organic matter and nutrients, an erratic monsoon, depleting groundwater resource, deterioration in water quality, etc. are the key challenges to be addressed.

2.4 Crop Losses due to Pests and Diseases and Management thereof

Horticultural crops are host to a number of serious insect pests, diseases and weeds which affect productivity. It is estimated that the loss due to insect pests, diseases and weeds has been 20%, reaching even 80% in some crops depending on agro-ecological factors of the environment. Climate Change and lack of knowledge regarding plant protection mechanisms have further aggravated the situation.

2.5 Post-Harvest Losses and Value-Addition

Because of the inherently perishable nature of the produce/short shelf life of vegetable crops, as much as 30-35% of vegetable crop perishes during harvest, storage, grading, transport, packaging and distribution. At present, there is a huge mismatch between the production capacity of vegetables in the country, and the infrastructure available for post-production distribution, storage and value-addition. Only 2% of these crops are processed into value-added products.

2.6 Lack of Access to Credit

The small and marginal farmers face huge challenges in accessing timely and adequate credit for vegetable cultivation.

2.7 Lack of Risk Management Measures

Vegetable cultivation poses many risks for farmers due to high investments, timely and adequate irrigation requirement and perishability of produce. However, the risk management measures including insurance are inadequate at the moment.

2.8 Climate Change

Climate change poses challenges like high temperature stress during critical crop growth stages, intermittent and/ or terminal drought, excess moisture stresses caused by extreme rainfall events, the incidence of insect pest and diseases and emergence of new insect pests and diseases.

2.9 Inadequate Market Linkage and Price Fluctuations

Inadequate supply chain facilities and absence of market infrastructure facilities for obtaining information on fluctuating prices pose a major threat for horticultural producers in realising higher returns.

2.10 Weak Extension Machinery and Mechanism

Traditional extension approaches have not delivered the desired results. Further, increasing consumer awareness of food quality and safety necessitates education of the farmers about value-addition and best horticultural management practices.

3. Project Idea Agriculture

The project idea is based on sustainable utilisation of land and water resources available with farmers for improving farm incomes through Integrated Vegetable Cultivation (IVC). To ensure effective utilisation of farm land and year round availability of vegetables for consumption and sale, different horticultural crops are selected for borders of the farm land, seasonal cultivation, perennial cultivation, green leafy vegetable cultivation and fruit bearing tree cultivation. The steady flow of harvest ensures year round income for the household. Integration of components such as solar powered irrigation pumps, drip irrigation systems and measures for judicious use of water and other resources makes it a sustainable livelihood option for the farmers. The model has a huge potential for enhancing production and productivity of vegetables, contributing towards increasing farmers’ income while ensuring sustainable Natural Resource Management (NRM). The model can be replicated in most of the parts of the country by making requisite changes as per the local conditions.

However, the model requires a significant upfront investment for irrigation facilities, land development and input costs. Availability of irrigation facility throughout the year is the key to success of the model. In most cases, resource poor farm families, especially in the remote and arid parts of the country inhabited predominantly by tribal families, find it challenging to make such an investment without credit support.

4. Integrated Vegetable Cultivation (IVC)- The Model under Umbrella Programme for Natural Resource Management (UPNRM)

The IVC project under UPNRM implemented by Patneshwari Agri Producer Cooperative Limited (PAPCL) in Rayagada district of Odisha is a unique convergence model to overcome the challenges of high upfront investment cost and sustainable utilisation of natural resources (refer to the operational model as given in Figure 1). The project is financed by National Bank for Agriculture and Rural Development (NABARD) under UPNRM with loan and grant funds, revolving fund and grant from Sir Dorabji Tata Trust (SDTT), contributions by PAPCL and beneficiaries. The projects are framed in such a way that neither the farmers are overly indebted nor everything is provided as a grant. It enables the resource poor farmers an opportunity for a sustainable livelihood and increased year round income.

The project envisages transforming the lives of primarily the small and marginal farmers through loan based IVC. Each of these families will have 50 decimal of their land under IVC. In the proposal, 400 families have been envisaged to be covered under the project. The programme is aimed at significantly enhancing per family annual income to more than Rs. 75,000 per year.

An IVC model in 50 decimal land will have the following components:

1. Permanent wire based boundary and live hedge: A low cost wire based boundary will be provided with concrete pillars in the corners of the plot and wooden pillars in between. A live hedge will be developed in the boundary through the plantation of Duranta and Gliricidia.
2. Border crops like Drum Sticks and Papaya: In the boundary of 50 decimal of land, there will be around 100 drumstick and Papaya plants.
3. Seasonal Vegetable Cultivation in 20 decimal land: In 20 decimal of land, seasonal vegetables will be grown through either sprinkler or drip systems. In each of the seasons at least two vegetables will be grown in this 20 decimal of land. The vegetables like brinjal or tomato and beans will be preferred during Kharif season. In the Rabi season, the focus will be to grow onion and pea. The vegetables like Okra and Chillies or Capsicum will be grown during the summer season.
4. Perennial Gourd Cultivation in 10 decimal land: Perennial gourds like a pointed gourd or spine gourd or little gourd will be cultivated on trellis in 10 decimal land. It will ensure regular income to the families in most times of the year.
5. Seasonal Gourd in 10 decimal land: Seasonal gourds like ridge gourd, bottle gourd and bitter gourds will be cultivated in different season on trellis in 10 decimal of land.
6. Banana in 5 decimal: Banana will be cultivated in 5 decimal of land that would generate income annually.
7. Greens in 5 decimal: Green leafy vegetables like spinach etc. will be cultivated in this 5 decimal land for home consumption.
8. Water Source to Provide Water Round the Year: Water sources like perennial streams or springs will be tapped to avail water for irrigation throughout the year. In the absence of the above either dug wells or bore wells will be dug as a source of water for irrigation.
9. Irrigation: The crops will be irrigated either through gravity based pipe flow system or through lifting water through pumps. For lifting water from the streams, wells and bore wells, solar operated portable pumps will be used. Water will be applied to the crops either through a drip irrigation system or gravity irrigation.

5. Scope of Credit Financing and Subsidy

There is a huge potential for financing for vegetable cultivation and allied components with the growing demand for vegetables. Share of plan outlay for horticulture, which was 3.9% during the 9th Plan, increased to 4.6% during the 12th Plan (2012-2017). Centrally Sponsored Schemes (CSSs), such as National Mission for Sustainable Agriculture (NMSA), National Mission for Agriculture Extension and Technology (NMAET), Mission for Integrated Development of Horticulture (MIDH) and Rashtriya Krishi Vikas Yojana (RKVY), Paramparagat Krishi Vikas Yojana (PKVY) and Pradhan Mantri Krishi Sinchai Yojana (PMKSY) have designed a number of subsidy schemes which can be linked to commercial loans from banks. The risk of Non Performing Asset (NPA) in this sector can be minimised by combining/convergence with subsidy schemes.

6. Mainstreaming the Model

The model has been implemented in various states with minor changes to suit local requirements. Exposure visits to the project sites can be organised for a diverse range of stakeholders such as Govt. officials, bankers, donors etc. Information leaflets, video documentary and other knowledge materials have also been developed under UPNRM to popularise and mainstream the model.

PAPCL has been a noteworthy channel partner for UPNRM programme and has been implementing projects for agroforestry model as well for the last 7 years. The model has already received recognition from state government departments and Tata Trusts which are reflected in the funding mechanism of the project.

6.1 Potential Institutional Means of Finance

• NABARD Funds: PODF, NABFIN, NABKISAN etc.
• District Central Cooperative Bank (DCCB)/Regional Rural Bank (RRB), Micro Finance Institutions (MFIs), Commercial Banks.
• Grants: Corporate Social Responsibility (CSR), State Government.

6.2 Scope for Upscaling

• Geographical - Within Odisha and almost all other states including the North Eastern Regional states.
• Institutional - Schemes and policies of the State Govt., financial products by financial institutions.
• Convergence – Programmes and projects by the Government and private agencies.

7.Impacts (Social, Economic, Environmental)

7.1 Social

• Vegetable cultivation is mainly carried out by the women members of the household which enables productive use of their labour and time.
• Self Help Group (SHG) programmes have empowered women to contribute financially to such livelihood activities thereby elevating their social status as entrepreneurs.
•  Fresh fruits and vegetables constitute key components for ensuring the nutritional requirements of households.

7.2 Economic

• IVC leads to regular income throughout the year.
• It also increases the overall farm income for the farmers.

7.3 Environmental

• Optimal and sustainable utilisation of natural resources for sustainable livelihoods.
• Use of solar powered pumps for clean energy.
• Use of drip irrigation for judicious use of water.

Annexure 1

Initial Capital cost and Contribution details

Annexure 2

Cost of Cultivation of different vegetables/banana

Ridge Gourd (Kharif)

Annexure 3

Expenditure & Income – 0.5 Acres

Annexure 4

Economic Analysis