Summary for Research Report 3

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The diverse agro-climatic conditions in India make possible the cultivation of a large number of fruit species. As the population in general prefers to consume fresh fruits, the processing industry is relatively small. Individual aspects such as processing and marketing of fruits have been studied, but the value chains, especially those of underutilised species, have not been adequately analysed. Hence, a study was conducted to understand the value chains of amla (Emblica officinalis), tamarind (Tamarindus indica) and kokum (Garcinia indica). Although underutilised these species have the potential to become a component in farming systems of smallholders. Driven by its nutritional value, medicinal properties and the suitability for processing into a wide range of products, amla is emerging as a favoured species for small-farm agroforestry in many parts of India. The traditional practice of having a few scattered trees of tamarind or kokum is changing with the availability of superior genotypes and the benefits of grafted plants.

The BAIF Development Research Foundation, a non-government organisation in India, has been collaborating with the International Centre for Underutilised Crops (ICUC) to promote underutilised fruit species through the production and distribution of extension literature and small-scale processing units. In continuation of this collaboration, a value chain analysis was carried out during October to December 2006 by collecting information through personal interview, individual interaction and group discussion. Secondary data from literature and unpublished documents were referred as well. Information for amla was collected from three locations in the states of Rajasthan and Uttar Pradesh while the study for tamarind and kokum was within the state of Maharashtra at four and two locations, respectively. The key information collected for each species was on the cost of orchard establishment and aftercare, fruit production and returns, quantity and income of intercrops and by-products, all aspects related to processing and prices at processor, wholesaler and retailer level.

Amla orchards are generally established in dry areas of Rajasthan at a population of 40 grafts in 0.4 ha of land and fruit production begins in the fourth year. The total expenditure on establishment and aftercare up to the age of eight years is INR 12,950 and the cumulative value of fruits produced is INR 22,250. In the Uttar Pradesh location, however, soil fertility and moisture availability are more favourable and amla trees produce about 20% more fruits while the yields of intercrops are even higher than those in Rajasthan. Therefore, the investment is recouped in 4-5 years under favourable environmental conditions whereas it takes 7-8 years for this to happen in dry areas. Farm operations are such that the labour requirement for amla is mainly during the winter season when fruits mature. A processing unit can obtain fresh fruits for about 5-6 months in a year and the main processed products are pickle, squash, sweets and candy. Value addition in amla ranges from INR 5.25 for mouth freshener to INR 51 for candied pulp. An analysis of profit distribution of candied pulp showed that the returns per kg of amla is only INR 1.50 to the farmer compared to more than INR 8 to others in the chain.

Returns from tamarind start in the sixth year and the investment on establishment and aftercare of the orchard can be recovered by the eighth year. On the other hand, farmers who had irrigation facilities raised annual crops in the interspaces, which was a highly remunerative intervention. Such orchards had a income surplus by the second year itself. New product development in tamarind is limited and the condiment value of pulp still remains its predominant use. Sauce, pickle, toffee and dried pulp powder are the other products. Value addition when one kg of fruit is processed into pulp is INR 33, but it is INR 60 if made into toffee. However, there is no established demand for products like tamarind toffee and amla candy. Small processors appeared to be averse to the risk associated with such value-added products because the profit margins are unattractive at present. A practice of small units that process several fruit species is to keep tamarind pulp in storage and process small quantities whenever there is a break in the processing of other fruits.

Kokum production in orchards is not widespread and the bulk of the produce comes from homesteads and common lands. The economics of kokum production is similar to that of amla in orchards planted with 30-40 grafts with intercropping for additional income. Presently, there are several kokum-based production practices where its presence ranges from a few trees to naturally-established dense plantations. Depending upon the number of trees, size and vigour, the income from kokum varies from INR 300 to INR 3,350. The scattered occurrence of kokum trees provides a livelihood opportunity for fruit collectors. Those engaged in this activity collect or buy fruits and supply them to processing units, earning INR 5,000-7,000 during the fruiting season of 2-3 months. The cost of rind and syrup, the common products of kokum processed by households, is more than 30% lower than that of commercial processing units.

Fruit yields are below the potential for all three species in the study. The probable reasons for low productivity are the inferior quality of land allotted for these species, inadequate input application and management, high tree-to-tree and year-to-year yield variation. If more growers are to take up these species, it is necessary to ensure stable returns every year through the efficient utilisation of land and other resources. Small-scale processing with appropriate market linkages can help reduce the number of intermediaries in the value chain and thereby increase the share of the profit that goes to the growers. Enhanced processing technologies that can preserve the nutraceutical value of the study species have to be developed. Credit facilities and information support systems dealing with all aspects of the value chains are other requirements for the successful promotion of underutilised fruit species.

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