Professional Documents
Culture Documents
Contents
CHAPTER-I ............................................................................................................................ 2
PROJECT BACKGROUND ........................................................................................................................... 2
1.0 Introduction: ................................................................................................................................. 2
1.2 Production Overview: ................................................................................................................... 2
1.3 Reasons for low production and value addition of Ginger ........................................................... 5
1.4 Proposed Solution to improve the plight of poor ginger farmers ................................................ 5
1.5 Bridge up the Gap ......................................................................................................................... 6
CHAPTER-II ....................................................................................................................................... 7
Market survey ..................................................................................................................................... 7
2.0 Market Player of the Project Area: ............................................................................................... 7
2.1 Farmer: .......................................................................................................................................... 7
2.1.1 Solution: Upgrading of local market .......................................................................................... 8
2.2 Middle Man ................................................................................................................................... 8
2. 3.Whole Sellers ............................................................................................................................... 9
2.3.1 Proposed Solution ...................................................................................................................... 9
2.4 Retailers/Vegetable Vendors: ....................................................................................................... 9
2. 5.Supermarkets/Distributors: ....................................................................................................... 10
2.6. Exporters .................................................................................................................................... 12
2.7 Other Data Analysis..................................................................................................................... 16
CHAPTER-III .................................................................................................................................... 18
CONSUMER SURVEY ............................................................................................................................. 18
3.0 Consumer surveys can advise us on: .......................................................................................... 18
3.1 Consumer Demand Projection and Analysis based on consumer survey ................................... 18
3.2 Preference for ginger - ................................................................................................................ 19
3.3 Opportunities- ............................................................................................................................. 20
3.4 Steps to capture the market ....................................................................................................... 20
3.5 Demand Projection and Setting Target Market Based on Market Survey .................................. 21
3.5.1 Ginger Paste: ............................................................................................................................ 21
3.5.2Ginger Pickle: ............................................................................................................................ 21
3.5.3 Dried/Powdered or Ginger Oil ................................................................................................. 21
3.5.4 Production and Value addition of Ginger in Project Areas ...................................................... 22
3.6 Demand and Supply Gap Analysis............................................................................................... 23
3.7Conclusion:................................................................................................................................... 24
1|Page
CHAPTER-I
PROJECT BACKGROUND
1.0 Introduction:
Market Survey Reports elucidate the Present Market Potential as well as future scope of the
product. Ginger is a tropical species native to South East Asia. Botanically known as Zingiber
officinale, it is the most popular hot spice in the world. India has a predominant position in
ginger production contributing 26 per cent of the total world production, but accounts to only 6
percent of the global ginger trade. Ginger is a low-volume, high-value tropical crop. Its
rhizomes, (continuously growing, usually horizontal, underground stems, which puts out
lateral shoots and extraneous roots at intervals), also referred to as hands in the trade,
produce an aromatic spice widely used in India. Ginger is one of the most important spices
traded the world. It is highly valued for its medicinal uses. Other uses vary from an important
cooking ingredient to ginger ale and ginger beer.
Fresh ginger is viewed as a vegetable and not generally considered as a spice. Major by-products
are dried ginger, ginger powder, ginger oil and ginger oleoresin. Dried ginger is sold as whole
rhizomes (hands) commonly known as ginger root, either peeled or unpeeled. Ginger grows well
in the tropics at altitudes ranging from sea level to 1500m. The best ginger yields are achieved
in rich, medium textured, fertile soils using large amounts of good quality water, fertilizer and
other organic matter. Too much water can cause water-logging as ginger does not resist this
very well. If cultivated in shaded areas prolific growth can be attained. The production of ginger
is both capital and labour-intensive. If adequate care is taken, yields of up to 30-45 MT per ha of
fresh ginger are possible. Cleaning the harvested ginger of excess soil, roots and stems is very
labour intensive. In smaller areas stools are snapped off by hand. Surplus soil and roots are
removed before the rhizomes are placed in bulk bins. Weight loss during harvesting is
minimized by expediting the handling process and by covering the collection bins or by storing
the newly harvested ginger in the shade. This is where the rhizomes are washed, peeled,
washed again then sun-dried to produce peeled and dried ginger. The process takes anything
from 8-10 days during the dry season and a little longer if there are intermittent rains.
2|Page
World
India
Orissa
Koraput
Phulbani
and
Area (ha)
As a percentage of
previous one
Production
(mt)
429481
105900
16070
6328
100 %
24.66%
15.17%
39.38%
1387445
370300
31400
13033
As a
percentage of
previous one
100%
26.69%
8.48%
41.51%
Yield
(mt/ha)
3.23
3.5
1.95
2.06
429481
India
105900
I
n
d
i
a
100000
105900
Area in ha.
World
80000
60000
40000
20000
0
India
Orissa
Koraput and
Kandhamal
2003-04
2004-05
2005-06
2006-07
2040
2180
2200
2424
Koraput
Production
(tonne)
4104
4386
4426
4993
Yield
(tonnes/ha)
2.01
2.01
2.01
2.06
Area (ha)
3840
3724
3865
3904
Kandhamal
Production Yield
(tonne)
(tonnes/ha)
7909
2.06
7670
2.06
7960
2.06
8040
2.06
3|Page
3840
2040
2003-04
2180
2004-05
Year wise
3904
3865
3724
2200
2424
2005-06
2006-07
Koraput Area (ha)
Kandhamal Area (ha)
From the above statistics it can be easily figured out that area and production of ginger are
increasing day by day because some of the budding entrepreneurs have realized the potential of
ginger production and its value addition. But the worst sufferers are the poor tribal farmers
who are at the mercy of village traders or local Sahookars for selling their ginger produce.
These farmers neither have technical knowhow to boost their production nor have any
storage facility to sale the produce in off season at fairly good price.
In addition to this, these farmers do not possess any information regarding current
market price due to lack of infrastructural and communication facilities.
Apart from this farmers are not able to negotiate or bargain with the traders for better
price due to their poor economic and social status.
Nevertheless if we see the percentage of Indias share in world ginger trade its just
meagre amount of 6% instead of more than one fourth of the world ginger production.
Again if we try and look into data of India and Orissa in context of percentage of value addition
of ginger, it one can notice that contribution of Orissa in value added ginger production is just a
negligible amount of 2% against the national average of 30%. Dry ginger is produced mainly in
Kerala, a major share of which is exported. Thus the huge gap in value addition of ginger
products can be easily noticed.
Table 3, Use of Ginger in India and Orissa
Percentage of Ginger Used As
Seed purpose
Fresh ginger
Value
added
ginger
(dried/powdered/oil)
India
20 %
50 %
30 %
Orissa
30 %
68 %
2%
Source- Market survey by Dr A.T.N Abu backer-HOD Dept Of Economics, Dr. Zakir Hussain College, TN
4|Page
Orissa
2%
India
30%
68%
Fresh ginger
50%
30%
Seed purpose
20%
0%
20%
40%
60%
80%
5|Page
Cause
Use of indigenous variety
Proposed Solution
Introducing
new HYV like
Suruchi, Suprabha and Surabhi
Ridge and furrow method of Formation of Ridge broad beds
planting
Rhizome rot and scale insect Seed treatment with dithane-45
and other measures
No storage facilities
Storage in pits after treating
ginger with dithane-45 and zero
energy cool chambers
a. No value addition
Value addition at cluster level by
establishing primary processing
unit.
b. No market support
Each consortium partner will contribute to fulfilment of project in their respective unique and
innovative ways. Let us see the list of the innovationsActivities
Status
Baseline Survey
Ongoing
Identification of HYV
Done
Details
1. Data regarding farmers profile,
traders profile, cost of cultivation.
2. Identification of beneficiaries.
Suprabha variety
Contributor
CTRAN
along
with OUAT and
IAEET & KASAM
Do
OUAT
OUAT,
CTRAN,
IAEET, KASAM
CTRAN
CTRAN
OUAT
IAEET &
KASAM
6|Page
CHAPTER-II
Market survey
India is the world's largest producer and consumer of ginger. Our marketing system is not well
defined to meet need of farmers. Farmers are disorganized, getting no reliable market
information and domination by speculative middlemen. Moreover, there is no quality
management, no quality standards and no grading. The ginger market chain appears to be in a
deadlock. Farmers are reluctant to invest because their market outlets are unreliable and
market agents are unwilling to invest because farm production is sub-optimal. Cultivation of
ginger is started long back in the Kandhamal and Koraput region. Indigenous varieties of ginger
were found in all most all areas in Kadhamal district. But Koraput farmer are more innovative
than Kandhamal because of Mali community. Influence of KVK, RRTTS and HARS make Koraput
farmer more progressive and innovative.
Market survey was done across the state of Orissa to study current demand, production and
value addition of ginger. Study was also done to prepare a Business model and analyse the value
chain of ginger products. Therefore market was studied right from farmers, middleman,
whole seller, retailer, supermarkets and exporters to the end consumers.
Exporters
Super Market
Retailer
Whole
Seller
Middleman
Farmers
2.1 Farmer:
The producer (Farmer) is operates at the lowest level of market player of the value chain. He
directly or indirectly sells his produces in the local market or local trader in the vicinity. Price of
ginger depends on market demand and situation. To realize these new market opportunities
7|Page
Forming of producer and/or marketing groups: Using marketing involves costs that will
often be impossible for one producer alone to cover. Apart from the common benefits of
being organised, such as easy learning, better bargaining power, reduced transaction cost,
collective marketing etc., it will strengthen the impact of the marketing efforts if a steady
supply is available for the market.
Improvement of Quality: When products from several producers are sold under the same
label a consistent level of quality is necessary for higher price.
Collecting and analysing market information: Information about competitors prices and
products as well as buyers preferences is crucial when marketing decisions are to be made.
Changing the organisation of the market: Efforts to organise (local) market more
efficiently in a dialogue with all the stakeholders often result in benefits for producers and
market actors.
8|Page
2. 3.Whole Sellers
Ginger is sold in Orissa at wholesale rate in Aiginia, a place in Bhubaneswar and Chatra Bazar, in
Cuttack. It is market full of godowns and trucks. Every where we can see unloading or uploading
of major vegetables for Bhubaneswar and Cuttack market. This is the market for major
vegetable vendors of Bhubaneswar and sometimes even Cuttack. This market procures hard
selling vegetables like potato, onion, garlic and ginger from different places where ever its
available in plenty. The entire godowns are held by Sahookars. They procure on daily basis from
different parts of country based on the demand and supply.
As far as ginger is concerned only 10-12 Sahookars or wholesellers are involved. Each Sahookar
is able to sell half or one truck load of ginger daily which comes around 18 tonnes. Customers
are vendors (retailers) located in unit-1 market, unit-4 market, IRC village market and several
others. They procure ginger mainly from Silchur (Assam) in this season, after 2 months from
now they told they will procure from Kandhamal and Koraput ginger. They also procure from
Bangalore and they prefer Bangalore ginger over local ginger from Kandhamal and Koraput
because of low procurement price though the transportation charges are higher for Bangalore.
They do not store fresh ginger. They procure fresh ginger from local traders or agents or
Sahookar located at that area. They used to do business in cash basis and the existing rate of
fresh ginger they used to sell @ Rs. 32-34/kg to the retailer. Each retailer used to take 1 quintal
to 5 quintal per day. One Sahookar (local traders) told that it cost them around 5 lakhs per truck
load of ginger + Rs. 50000 for transportation .So if we calculate , cost price per kg of fresh ginger
for these big traders would be around Rs. 30/kg. So we can see the gap clearly. When we asked
them weather they supply ginger to any processing unit, one of the Sahookar told that some
person from Ranchi used to procure from him for making ginger flakes. Another Sahookar told
that one ginger pickle manufacturing unit used to procure from him but now they are not
procuring. When we asked why dont they procure directly from farmer or farmer group, they
told that a farmer does not a loadable quantity firstly and even if they have loadable quantity of
around 16-18 tonnes they are not willing to sale all their produce at a time. So it is always better
for these traders to procure from an agent who dont have any of these issues.
2.3.1 Proposed Solution Producer Company/Cooperative will directly get orders from these
whole sellers and thus earn a better price.
9|Page
2. 5.Supermarkets/Distributors:
a. Big bazaar at forum MartSelling price of fresh ginger @ Rs. 60/kg
Table 4, Status of Big bazaar Ginger Products
S.N
1.
2.
Ginger product
Ginger paste
Ginger garlic paste
Brand
Mothers Recipe
Mothers Recipe
Size of SKU
50gm
50 gm
Type of packet
Pouch
Pouch
3.
4.
5.
6
7.
8
9.
10.
Ginger granules
Ginger Paste
Ginger Paste
Ginger Paste
Ginger Paste
Ginger garlic paste
Ginger pickle
Ginger pickle
Ruchi masala
Priya
Smith n Jones
Smith n Jones
Smith n Jones
Smith n Jones
Priya
Mothers Recipe
75 gm
200gm
250 gm
200gm
100 gm
100gm
300gm
300gm
Jar
Pouch
Bottle
Pouch
Pouch
Pouch
Bottle
Bottle
NA
25
29
24
11
11
69
59
10 | P a g e
Ginger product
Ginger paste
Ginger garlic paste
3.
4.
Ginger Paste
Ginger pickle
Priya
Priya
200gm
300gm
Pouch
Bottle
25
69
We could not find any dried ginger, sliced ginger and ginger powder in the store.
The total sale per day for ginger is around 20 pieces of ginger paste
So 15 store *20 pieces per day = 300 pieces per day (ginger paste)
Ginger pickle sell is very less as compared to mango, lemon and chilli pickle. On an
average they sell 2 bottles of ginger pickle, so 30 bottles for 15 stores in Bhubaneswar.
Their major distributor are Uday trading, Ajit Bishnoi and Ruby marketing etc.
c. Spencers DailyFresh ginger price is Rs 50 per kg
Table 6, Spencers Daily Ginger value added products
S.N
1.
2.
3.
4.
5.
6.
Ginger product
Ginger paste
Ginger
garlic
paste
Ginger Paste
Ginger pickle
Ginger pickle
Sweet
ginger
pickle
Brand
Mothers Recipe
Mothers Recipe
Priya
Priya
777 brand
777 brand
Size of SKU
50gm
50 gm
200gm
300gm
300gm
300gm
Type of packet
Pouch
Pouch
Pouch
Bottle
Bottle
Bottle
25
69
40
55
11 | P a g e
2.6. Exporters
The Govt. of Orissa has signed a MOU with APEDA (Govt. Of India) for setting of a Agro Export
Zone for ginger in the district of Koraput and Kandhamal in Orissa. Under this AEZ scheme
organised production, certification and value addition of ginger is done involving 12000 tribal
farmers under one federation KASAM in an organised way. Export of organic ginger and ginger
products from Orissa to USA, Germany, Netherland, Australia through KASAM was started from
2004-05. More than 50% of area and production of ginger in Orissa is concentrated in tribal
farmer occupied districts. Most of the tribal farmers are resource poor marginal farmers and
cultivate ginger in traditional methods under rainfed conditions in the podu cultivated eroded
hill areas. The details are stated below in table 7.
Table 7, Export Price Scenario
Company
Fresh
ginger
Rs./kg
Dried
ginger
Rs./kg
Powdered
ginger
Rs./kg
125-130
Organic
ginger
powder
Rs. /kg
240-250
Indian Commercial
Company
Asian Food
Industry
Asian Alimento &
Especials Ltd.
Universal Oleoresin
Elixir Extracts
25
28
110-130
220-240
120-135
Ginger
oleoresin
Rs. /kg
Ginger Oil
Rs. /kg
1300-1600
1200-1500
6500-7500
6500-7000
125-140
110-130
12 | P a g e
200-230
8000-10000
(organic)
5000-6000
130-160
Most of these exporters sell ginger products to USA, UAE, UK, Spain, Sweden, Philippines,
Bahrain and South Africa. All of them sell these ginger products through their own website or
getting registered in trading websites like India mart and Amazon etc.
2.6.1 Opportunity and Profitability
There is huge market for ginger across world due to increased use in pharmaceutical industries
and food industry. India exports only 6% of its total produce though it accounts for one fourth of
total world production. Among exporters if we see, 50-60% of ginger and ginger value added
products export comes from Kerala. In Orissa, the scenario is gloomy as only one exporter was
identified to export dried and powdered ginger. This gives me immense opportunity to venture
into the growing ginger business and adding to foreign exchange basket with gainful
employment of local resources and manpower.
2.6.2 Issues with the Exporters:
13 | P a g e
2.6.3 Visit to Bio sourcing Company Pvt. Ltd., Sahid Nagar, Bhubaneswar
Bio-sourcing is a company with varied value added organic products right from spices,
medicinal herbal powders to essential oil. Company was originally in trade business of spices
and NTFP but later in the year2004 it started processing all these valuable crops and products.
They are also in the business of developing skin care and herbal care products. Clients are
mostly outside the country. Their clients are spread across the world .Some of them are from
USA, UK, Sweden, Holland, South Africa, The Philippines, Malaysia, South Korea. As far as ginger
is concerned, they have started processing ginger 3 year back. They process ginger and produce
ginger value added products like dried ginger, ginger flakes and ginger powder. Till now they
are not in the extraction of ginger oil but very soon they will be doing so. Annual turnover from
ginger products alone is 85 lakh (2007-08) with a procurement of 60- 70 tonnes of fresh ginger.
This year their target is to achieve 4 crores worth from sale of ginger product. Bio-sourcing
company has very unique type of organisational structure which allows it to maintain the
international standards and quality of the products. It has divide its business in 5 SBU (Small
Business units) namely:
SBU
AdministrationFarmers managing unit
Function
Maintains and coordinated the all SBU
Training to farmers regarding organic cultivation practices and
procurement of fresh ginger
Laboratory team
Online team
Marketing team
Farmers managing groups are located in Koraput and Kandhamal districts of Orissa. They also
have their own land in which they cultivate ginger in purely organic way. These groups directly
14 | P a g e
2.6.3.1 Certifications- Bio-sourcing has got organic certification from USDA and India organic
as well. The certifying agency comes frequently to farmers field to monitor the soil health and
crop plants. This certification cost a lot to the company but it ensures organic way of cultivation
which gives remunerative prices for its products.
2.6.3.2 Storage- The Company has devised a special method of preserving ginger for more than
4 months without any wastage through its R& D Department. They keep fresh ginger in brine
solution.
2.6.3.3 Processing of Ginger
Ginger
Packaging
Washing through
jet water
Pulverising in
different sizes
ginger flake &
ginger powder
Curing
15 | P a g e
Year
1993-94
1994-95
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
2007-08
India
World
28,268
8,683
8,923
6,288
6,464
8,461
9,104
9,411
13,890
9,661
1,74,185
1,55,985
2,04,055
2,43,173
2,49,933
2,90,992
3,11,405
2,91,484
3,79,630
3,85,406
India as a % of
world production
16.2
5.6
4.4
2.6
2.6
2.9
2.9
3.2
3.7
2.5
These data are indicating the faster growth of ginger export market. If we compare the world
export data, it can be noticed that there is 147% growth from year 1998 to 2006-07, i.e. one and
half times increase. But when it comes in Indian context, growth rate in the same period is just
11%.One can imagine the potential of growth of ginger products in export market.
16 | P a g e
46.74
36.46
19.92
42.65
49.45
46.81 48.23
35.76
25.69
35.92
28.33
Years
If we try and look into the ginger export price for the last 10 years we can find that there is no
fixed trend. Every alternate year there is a rise and fall in the price of export market.
150.00
Average Price
130.36
100.00
99.40
90.54
68.56
54.81
50.00
60.31
0.00
2003-04
2004-05
2005-06
2006-07
2007-08
2008-09
Year
If we analyse the year wise price trend of unbleached ginger we can find that there is a trend of
sudden price increase after every 3 year and then again price starts decreasing.
80.00
60.00
40.00
20.00
0.00
APR MAY JUN
Month wise distribution of price if we see, the price dips down during the month of Jan-April,
this may be because market is ready with fresh ginger harvested crop.
17 | P a g e
CHAPTER-III
CONSUMER SURVEY
A consumer survey gives an idea to assess the particular market and the attitude of its
consumers. Making assumptions is simply not enough. That is why regularly conducting
consumer survey is essential to analyze the market demand and business trend.
18 | P a g e
80%
60%
40%
100
84
88
88
96
96
92
16
12
12
20%
0%
If we try to visualize the number of users of ginger based value added products, we can observe
that the total households uses fresh ginger to prepare ginger paste for culinary purpose but if
we see other products like pickle only 12% of the total respondents use fresh ginger to prepare
ginger pickle at home. The number of respondents using other ginger products (like ginger tea
(8%), Ginger candies (4%) and powdered ginger (4%) ) are very less, so looking into the
potential market we would now concentrate on production of two products for our target
customer namely ginger paste and ginger pickle based on the consumer survey .
It was also noticed that only 16% of households consume ginger paste and 12% ginger garlic
paste but the entire households prepares ginger paste at their home. The reason why they do
not prefer packaged ginger paste is are numerous like unawareness about ginger products,
availability issues, costly, added chemicals, not habituated to use such product, not like ginger
taste etc. Around 34% of the total respondents who have already used some of the ginger value
added products are reluctant to use these ginger products because they have felt that these
products contains lot of chemical preservative and also they do not taste like ginger. In addition
to this, it was heartening to know that 26% of the respondents are willing to buy the
product but they are not using these value added products due to unawareness (6%),
unavailability of products (6%) and not habituated (16%).
No
84%
19 | P a g e
3.3 Opportunities-
3.5 Demand Projection and Setting Target Market Based on Market Survey
Based on all the above studies, it was found that the producer company which will establish its
own processing unit will be responsible for production, marketing and managing the resources
and man power. This processing unit will produce following products of ginger:
Table 10, Ginger products and its purpose
Purpose
Selling place
Household consumers of
Socio-Economic Class A, B and C
Cuttack and Bhubaneswar
Ginger Pickle
Household consumers of
Socio-Economic Class A, B and C
Cuttack and Bhubaneswar
Dried/powdered ginger Export purpose/Bulk sale
USA, UK, UAE etc
Ginger oil
Export purpose/Bulk sale
USA, UK, UAE etc
SN Ginger products
1 Ginger paste
2
3
4
3.5.2Ginger Pickle:
Similarly ginger pickle would go to serve the same market SEC A, B and upper middle class C of
Bhubaneswar and Cuttack. Again out of 72000 HH , 10% of HH (7200 HH) are willing to buy
ginger pickle but due to major players like Priya pickle and Nilsons pickle, we would like to
cover 20% of the market which is around 1440 packs i.e. around 1500-1600 packs per month.
So it comes around 2 tonnes annual production.
21 | P a g e
60000
50000
40000
30000
20000
10000
0
2003-04
2004-05
2005-06
Years
2006-07
2007-08
Qty. in tonnes
Value in lakhs
Annual
productio
n in
tonnes
Price per
kg
Value in
lakhs
200 no
1 acre
7 tonnes
1400
tonnes
15% of produce kept as seed
210 tonnes
Ginger surplus with farmers
1190
1200
20
238.00
tonnes
tonnes
Value addition to a tune of 40%
476 tonnes 480 tonnes approximately
Remaining ginger sold with primary value 720 tonnes
720
25
180.00
addition (60%)
Ginger required annually for various ginger value added products
Ginger paste (annual)
12 tonnes
12
100
12
Ginger pickle(annual)
2 tonnes
1.5
166.67
2.50
Dried ginger(annual)
250 tonnes
50
130
65.00
Ginger oil(annual)
216 tonnes
0.864
7000
60.48
Total value addition
480 tonnes
139.98
Value of by products
50
20
10.00
Total sales
329.98
In both the districts 200 farmers have been selected for NAIP project and supplied ginger seed
for ginger production. If the average production is 7 tonnes per acre, as a result total production
22 | P a g e
products gives more profitable than direct sell. To achieve success in agriculture, marketing of
agricultural produces need to be emphasised upon. Apart from production aspects, a holistic
approach need to be taken up including the product value addition and remunerative market for
the produces addressing the persisting gap between both the two. Various studies advocate the
fact that the role of small farmers is important in order to meet the increasing domestic demand
of horticulture products. Linking small farmers with high value urban and export markets
would lead to the development of the rural sector. Farmers usually procure inputs from the
retail market and end up selling their produce in the wholesale market. Buying at retail price
and selling at wholesale price is the most uneconomic way of doing the business. Thus the
involvement of an institutional structure in coordinating the demand of individual farmers can
reduce the total cost of inputs to them which the project can promote at regional / local area
level by promoting product based marketing Organisations and/or producers Organisations.
The main thrust of the Agriculture sector is on diversification of traditional cereal crops to more
remunerative crops and development of horticulture. The new Agriculture Policy is in a
formative stage. The main objective of the Policy is sustainable development in agriculture and
horticulture with target growth of 4% per annum.
3.7Conclusion:
Most of the products sold by the farmers do not fetch them a good price mainly due to lack of
primary processing such as cleaning, grading etc. and results in distress sale. Promotional
activities by the project have resulted in production of a sizable quantity of certain products by
now and as projected, it will increase significantly in coming three years. There is need to
promote value addition and marketing to avoid distress sale and loss of confidence of the
farmers. In addition to 30% higher returns on farm income, this would generate a lot of
employment opportunities for the land less families in the area, which can prevent distress
migration.
Presently there is high distress sale of ginger. Before 3 to 5 years, Ginger was sold for 15/- to
20/- per Kg. This phenomenon is not due to surplus production, but due to lack of organizations
among the producers, lack of Market information and lack of Infrastructure for storage. In
Orissa this sector has been highly neglected by the Govt. and the trading communities are taking
advantage of this. Hence, there is a need for the project to organize the producers, build up
infrastructures, provide regular market information and build market linkages. Hence, the
farmers are trained on primary processing, value-addition and storage. These benefits in many
ways such as:
Prevention of post-harvest losses
Value addition to products
Maintain or improve the quality
Better utilization of surplus products
Availability in off-season
Opportunities for income and employment generation
Time to time market survey is essential to know the market situation and price trend. Marketing
environment and competitor analysis will be done through various tools i.e. SWOT analysis,
PEST analysis and Five Forces analysis methods. The SWOT will indicate internal strength and
weaknesses along with persisting opportunities and threat in the external environment. PEST
analysis will basically deal with Political, Economic, socio-cultural and Technological factors.
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The project looks at producing value added products from ginger for which two primary and
secondary processing units will be established at the cluster level. Chemical analysis of ginger
and ginger products will be done with certification and branding. With all these initiatives, the
project foresees to augment the income level of ginger producers by at least 10-15% from its
present level. With the increasing scope for entrepreneurship, 5% employment growth is
expected through direct and indirect means at associated farmers level. On farm value addition
will increase to 20% of the production from the present stage.
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