Bidi Tobacco Co-operative

Presented By:

Amit bhardwaj (29006)

Aparna krishna (29012)
Babita shahi (29015)
Jitesh jeetu(29019)
Taveshi manohar(29036)
 SCENARIO OF TOBACCO

National level Gujarat

 3rd largest producer.  Largest producer (80 %).

 2nd largest consumer.  Production: 78700million metric
 5.8 % of international tobacco tonne.
trade.  Area: 457000 ha.
 Occupies 0.3% of total cultivated
area .
 Highest excise revenue earning
4000 mn.
 Consumption breakup
q Bidi: 53 %
q Cigarette: 15 %
q Others : 32 %
 Market Dynamics: Bidi tobacco

 India: 85% of world’s bidi production.

 Annual consumption: 905000 million sticks.
 Centres of Bidi rolling : M.P, A.P,W.B, U.P, Maharashtra,.
 300 major brands: pataka, 502 etc.
 6000 small brands.
 Several sellers of unbranded bidi.
 6384 bidi rolling industries in 1993-94.
• Employment:
Farmers: 4.7 million
Agricultural labourers:17.7 million
Bidi rollers:4.8 million
Tendu leaf pluckers: 1.2 million
 Production Cycle
 Nursery raising:
 Seeds sown in July
 35 to 45 days for saplings
 Transplantation:
 15 August – 15 September
 15000 plants per hectare
 Growth: Complete till mid-March
 Harvesting:
 Lower leaves cut
 After 1.5 – 2 weeks, stem is cut
 Sun-curing for 2-3 days
 Leaf cutting and crushing
 Sorting
 Bhuka (lamina) : 55-60 %
 Rago (midribs) : 10-15 %
 Galia (sand leaves) : 10-15 %
 Geran (bits of lamina, veinlets, veins and midribs) : 17-20 %
Cost and Benefits involved (per ha)
 RISK IN BIDI TOBACCO

Product Risk:
q Moisture sensitive( storage ).
q Unscientific grading.
Price Risk:
q Price fluctuation.
q Specific time of sale.
q Untimely payment by traders.
q Lack of storage space.
 TOBACCO IN KUNJRAO

Total number of households: 425-430.

Households engaged in tobacco cultivation: 400.
Area under tobacco cultivation: 1014.6 Ha
Varieties used : AAU-19, AAU-7.
Flavor of the tobacco: Mild.
Variety increasing the weight of the produce
preferred.
Average productivity( kg/ha): 1700
 FACTOR MARKET CONDITION

Seeds : Anand agriculture university.

Fertilizer: local market.
Farm labor: family labor or contract basis.
Credit: Bank/ money lender/trader.
 NEED FOR COOPERATIVE
Huge margin of commission agent and Traders.
Lack of bargaining power
 Lack of storage space.
 Immediate requirement of money.

Absence of proper grading criteria.

Delayed payment to farmers.
To explore opportunities for other uses of tobacco.
 Cooperative designs evaluated

Pooling system.
Processing through outsourcing.
Processing through own facility.
Market Linkages

Co-operative
Break up of member’s produce
Func tio nin g o f th e co -o per ati ve
 Quality Assessment And Pricing

PARAMETERS-
Variety of the crop.
Irrigation.
Luster.
Flavor/ Strength/ phoonk
 CO-OPERATIVE….
 Membership open for farmers of all land holdings.
 Eliminating the traders and middlemen’s Role in marketing.
 Put aside 10% surplus for creation of patronage reserve
(BANK ACCOUNT).
 Repayment of loan to the earliest.
 Own storage and processing facility.
 Grading to be done by committee of members of the
cooperative.
 The principle of NGC to be followed where equity
contribution will be according to the produce.
 Member central.
 VALUE ADDITION

Time utility: storage

Form utility: processing( granulating)
Place utility
 FUTURE PLANS

Expansion.
q Area
q Members
q Setup
Diversification
q Nicotine extraction.
q Refined oil.
Thank you