CHAPTER 10 ECONOMIC SECTOR - Kalpetta Municipality - 10... · the most potential categories in the case of Kalpetta municipality ... Fig 10.2 Spatial distribution of Industrial

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Development Plan for Kalpetta Municipality

Town & Country Planning Department, Government of Kerala

Economic Sector

CHAPTER 10 ECONOMIC SECTOR

The economic sector includes industry, Trade and commerce, Tourism, agriculture, animal

husbandry and fisheries, Construction activities, transportation, storage and ware housing, other service etc. Among these agriculture, animal husbandry, trade and commerce and tourism are the most potential categories in the case of Kalpetta municipality is concerned. In this chapter analysis of significant categories viz. industry, trade and commerce, tourism, agriculture, animal husbandry and fisheries are discussed with respect to existing scenario. 10.1 Industry

Industrial land use constitutes 0.86% of the total Municipal area which is very less when

comparing with the suggested industrial land use share 8-10% for a medium town as per UDPFI guideline. The organized Industrial centre in the municipality is the KINFRA Park at Vellaramkunnu. About 50 acres of land is developed by KINFRA and some industrial units have been started. Wood based industry located at Kainatty, Coffee curing works at Kainatty, MILMA at Chuzhali and the essential oil extracting unit located at Maniyankode are the existing industries in the Municipality. There are 260 MSME units are seen registered in Kalpetta Municipality and the total employment potential in these units are 816. Two major projects viz. Brahmagiri Meat Processing centre at Nenmeni Grama Panchayath and food processing centre at Muttil Grama Panchayath will help to promote the industrial as well as animal husbandry sector of the Municipality. MILMA at Chuzhali has a well equipped plant which produces milk products.

There are 260 MSME units registered in the municipality which is 6.5% of the total

number of MSME units registered in the district. The above units further classified into Agro based, Electronic based, Automobiles, Wood based, Engineering based, Printing and Photostat, Garment making, Electrical based, Building materials, leather based and others. The number of units in each class is given in Fig 10.1.

Source: Local survey Fig 10.1 Existing MSME Units in Various Categories in Kalpetta municipality.

3

187

68

115

49

0

20

40

60

80

100

120

BuildingMaterials

Agro based Timberbased

Garments Engineering Others

Industries in various categories

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Economic Sector

Table 10.1: Existing MSME Units in Various Categories

Source: Industries Dept

As per the records (Table 10.1) it is seen that Engineering/Service industries are dominant in the municipality and Garment industrial sector stands on second. Even though the economy of Kalpetta municipality mainly depends upon agricultural sector, the agro based industries are very less. The Engineering and service Industries including automobile workshops, welding workshops, tyre retreading shops etc are exist in the town.

Fig 10.2 Spatial distribution of Industrial land use Fig 10.2 shows the spatial distribution of Industrial land uses in the municipality. It can be

seen that the industries are mainly concentrated in the core area except the KINFRA Park at Vellaramkunnu. The hinterlands are devoid of industries except the essential oil extracting unit at Maniyankode.

Sl No Particulars No of Units Employees 1 Building Materials 3 6 2 Agro Based 18 54 3 Timber Based 7 35 4 Garments 68 199 5 Engineering 115 315 6 Others 49 207 Total 260 816

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Economic Sector

10.1.1 Problems and Potentials

Wayanad is industrial backward district. The lack of proper connectivity and absence of rail connectivity and air strip discourages the entrepreneur. The town has not attracted any large scale industry so far. Since the Municipality is agrarian in nature and have good tourism potential, there is high potential for agro based and tourism based industry including cottage industries. Even though the municipality have considerable share of agriculture produces the diversification of product or value addition process not attempted. Also the proximity of IT town viz. Bangalore may attract IT based industries in the Municipality due to the presence of salubrious climate.

The draft Industrial and commercial policy 2011 of Govt. of Kerala envisages bringing in

the state in top three position in per capita income in the country (the state is in the seventh position at present). The role of MSME’s in employment generation is well established. Since the main economy of municipality is agriculture, it is essential that to promote agro based industries to enhance the local economy. Study reveals that the female representations in industrial sector are very less and there are opportunities in Bio-manure production, Traditional handicraft item and tourism based industries. The town if provided with good infrastructure facilities will boost the growth of MSME’s in the sectors viz. agriculture produces, cash crops etc. Even the sufficient data are not available in the case of traditional industries, there is a high potential especially for traditional utensils making since people are withdrawing from this trade because of less financial benefits. In the case of construction industries, development is not par with other district quarter in the region because the predominant activity of the municipality is agriculture.

10.1.2 Inference

The contribution of existing industrial base of the town is comparatively nil, mainly due to

lack of proper connectivity and absence of infrastructure. The Agro based, tourism based and IT based industries have good Potential in the town. Proper connectivity with rail and air transport has to be provided to ensure the development of the town as well as the district. 10.2 Trade and Commerce

Kalpetta is known for its and commercial activities even before about 200 years. But Kalpetta is not a commercially developed town compared to other District head quarters in the State. Commercial facilities are seen mainly concentrated on both sides of NH 766 as ribbon development. Only about 34 Ha. land (0.84% of the total Municipal area) is under commercial land use in the Municipality. The problem faced by the town is lack of organized market, Parking, loading and unloading space etc. The fish and meat market at Pinangode road junction is very congested and create nuisance to the public. There is no organized market for fruit and vegetables. Commercial centres within the town are mostly characterised by congestion due to vehicular and pedestrian traffic beyond the capacity of existing facilities. The construction of new Bus stand in the core area will attract more commercial activities which will again aggravate the problems, hence suitable measures to be adopted to decongest the core area.

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Economic Sector

10.2.1 Existing Hierarchy of commercial

Centres and Nodes As far as Kalpetta municipality is concerned the

Commercial activities are concentrated on both sides of NH 766 from traffic junction to Kainatty junction. The nodes are characterized by high concentration of commercial units. Nodes are identified on all important intersection of roads where there is a concentration of commercial activity as linear development. Most important commercial nodes in the town are Pinangode junction followed by Anappalam junction, Traffic junction and Kainatty junction as second order nodes. The third order nodes are Vellaramkunnu junction, warehouse junction, Munderi junction, Maniyankode junction and Puliyarmala junction.

10.2.2 Spatial Distribution

Fig 10.3 shows the spatial distribution of commercial nodes. It can be seen that the first

order and second order nodes are located on the sides of NH766 the main traffic corridor and others are located in the western part of the municipality, where the concentration of residential land use is high.

Fig 10.3 Spatial distribution of commercial nodes.

10.2.3 Informal Trading Activities (Street vending) Street vendors are common sight in all towns. The National Policy on Urban Street

Vendors, 2009 recognizes the positive role of street vendors being an integral and legitimate part of the urban retail trade and distribution system for daily necessities of the common man. The policy views street vending as a source of self employment to the poor which gives affordable and convenient services to a majority of urban population.

Pinangode Road Jn

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Economic Sector

There are 66 street vendors concentrated mainly at Chungam, opposite HIMUP School,

near SKMJ HS, Civil Station and near New Bus stand area in the municipality. Majority of them are Tea shops, Stationery, Garments etc. 66 Persons are engaged in informal trading activities of which 90% are male workers. Maximum persons (30No.) are engaged in the category of tea shops. Tendency of street vendors are to settle in areas where there is constant movement of people, especially near bus terminals.


Commercial facilities are seen mainly as ribbon development along the major transport

corridor NH766. Problems faced by the town are insufficient space for parking, loading & unloading space. The present fish and meat market is congested and unhygienic and there is no organized fruit or vegetable market in the town. At present there is no data available on people engaged in informal trading such as their address, residing place etc. Hence this will be social threat to the people. There is no initiative has been taken by municipality to accommodate street vendors. There is considerable land available adjacent to the core area to tackle all the above issues. 10.2.5 Financial Institutions

About 19 financial institutions are available in the municipality of which 53% are scheduled banks. Co-operative constitutes 16% followed by other non banking financial institutions. Table 10.2 shows the available financial institutions in various sectors in the municipality.

Table 10.2: Financial institutions in various sectors

Nationalised Bank 10 No Co-operative Bank 3 No Other scheduled banks 2 No other non banking financial institutions 4 No

Total 19 No

10.2.6 Inference Kalpetta Municipality is the only Ist order settlement in the district. It is not as

commercially developed as other administrative head quarters. Commercial nodes within the town are mostly characterised by congestion due to vehicular and pedestrian traffic beyond the capacity of existing facilities. Being a district head quarter and a service facilitator in tourism sector, it has to be provided with sufficient higher order facilities in commercial sector such as shopping malls, complexes, adequate parking space including provision for mechanical parking etc.

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10.3 Tourism Wayanad district is considered as one of

the important tourism destination in south India due to the availability various tourism spots such as as Pookode Lake, Edakkal cave, Banasura Sagar Dam, Chembra Peak, Kuruva Island, Muthanga Wild Life Sanctuary, Tholppetty Wild life sanctuary and Soochippara Waterfalls and Thirunelly Temple etc. Even though no identified tourism spots except “Myladippara” trekking centre in the town, being a district head quarter, the town has to act as a facility provider to the whole district. Almost all the tourist spots in the district are equidistant from Kalpetta. Proximity of major tourism destination such as Mysore, Ootty and Coorg makes Wayanad a tourism hub. Table 10.3 shows the distance of various tourism spots in the district from Kalpetta. The District Tourism Promotion Council (DTPC) is located at Kalpetta which control the tourist activities in the district.

Table 10.3: Distance from Kalpetta to major tourist destinations in Wayanad district

Tourist Sports Distance from Kalpetta

Banasura Sagar Dam 21 Km Banasura Sagar Hills 29Km Boys Town 45Km Begur Wild Life Sanctury 52 Km Chembra Peak 15 Km Edakkal Caves 27 Km Jain Temple, Sulthan Batheri 24 Km Kanthan Para Waterfalls 18 Km Karappuzha Dam 16 Km Kuruva Island 35 Km Pazhassi Tomb 34 Km Muthanga Wild Life Sanctury 39 Km Pookkode Lake 13 Km Pakshipathalam 72 Km Papanasini 66 Km Puliyarmala 03 Km Pallikkunnu Church 14 Km Cheengeri Hills 23 Km Ambalavayal Farm 25 Km Chain Tree 13 Km Seetha Devi Temple Pulpally 34Km Soochippara Waterfalls 22 Km Meenmutty Waterfalls 52 Km Tholppetty Wild Life Sanctury 52 Km

Myladippara Trekking Centre

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Ponkuzhi 41 Km Thirunelly Temple 65 Km Varambetta Mosque 22 Km Vallyoorkkavu Temple 31 Km

The District Tourism Promotion Council (DTPC) located at Kalpetta controls the all the

tourism activities in the district.

10.3.1 Important Heritage sites in the Town Puliyarmala Jain Temple is the only identified

heritage site in the town. It is the place of worship of Jain Community in - migrant from Karnataka. The history of Kalpetta stands with the in-migrant Jain community.

10.3.2 Tourist Arrival

As per the available data it is seen that the domestic tourists as well as foreign tourists drastically increasing year by year. Hence district has an important role in the tourism sector. The Table10.4 shows detail of tourists arrived in the year 2009&2010.

Table 10.4: Details of tourist arrival

Source: Police Dept

From the above table it is observed that 01 % of the total tourists arriving per year in the district

are foreigners.


Even though the economy of the district much depends on tourism, the infrastructure

facilities available are not sufficient to meet the requirement in the municipality. The main problems faced in this sector are lack of accommodation facilities such as budget accommodation, poor connectivity, and poor infrastructure in transportation sector, lack of marketing facilities etc.

Being a hill station with scenic beauty, Wayanad has several tourism as well as heritage spots, it is also noted that there is a immense scope for eco-tourism due to salubrious climate and presence of major share of forest content with wide range of flora and fauna. All the major tourism spots are located almost equidistant from Kalpetta. Hence Kalpetta has to be act as a service facilitator to the whole district. The “Myladippara” an elevated rock can be utilized for

Year Domestic Tourists Foreign tourists Grand Total

2009 816858 8198 825056

2010 852880 9320 862200

Jain temple Puliyarmala

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Economic Sector

trekking centre which may be connected to the Rattakkolly mala another elevated point where the tourism village is proposed to be located will enhance the tourism activity in the town.

10.3.4 Inference

Being the head quarters of “The hill paradise” Wayanad, Kalpetta has major role in the

tourism sector so that the local economy of the municipality may be enhanced.

10.4 Agriculture In Kalpetta agriculture is the predominant activity. 95.75 % of the agricultural land use in

the municipality and 65.83 % the total Municipal area are under dry cultivation followed by vested forest 12.63%.The spatial distribution of agricultural land is shown in Fig 10.4.

Fig 10.4 Spatial Distribution of agricultural Land

Agricultural land is concentrated mainly in Northern; North West, and Southern part of the municipality. Concentration is higher in wards 2, 15 and 18. Paddy constitutes 2.92% of the total Municipal area, which is scattered in the Western and Southern parts of the municipality. The spatial distribution of Paddy is shown in Fig 10.5

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Source: land use 2010. Fig 10.5 Spatial distribution of Paddy

The general system followed in this sector is mixed crop pattern. The main crop is Coffee

followed by Tea. Besides Pepper, Coconut, Ginger, Cardamom, Banana, Areca nut etc are also cultivated. The table 10.5 shows the important crops & production in the municipality.

Table 10.5 : Important crops & production in the municipality

Sl.No Item Area(Ha) Productivity

1 Paddy 20 2800 Kg/ Ha

2 Coffee 1430 3200 Kg/Ha

3 Pepper 250 400 Kg/Ha

4 Tea 304 2500 Kg/Ha

5 Coconut 100 78 Nuts/Plants

6 Rubber 15 800 Kg/Ha

7 Cardamom 10 110 Kg/Ha

8 Ginger 75 30 MT/Ha

9 Banana 100 30 MT/Ha

10 Vegetable 8 20 MT/Ha

11 Areacanut 80 1600 Kg/Ha

Total 2392 Source: Agriculture Dept.

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Economic Sector

Paddy Production & Area

49.6

6460

1620 20

0

10

20

30

40

50

60

70

2008-09 2009-10 2010-11

Paddyproduction(Tonne)

Paddyarea(Ha)

From the above table it is observed that the major share of crops is Coffee, pepper, tea and

areacanut. Temporal variation of paddy production & area is shown in the Fig 10.6

Source: Agriculture Dept.

Fig 10.6: Paddy Production & Area

From the above Fig 10.7, it is seen that the cultivable area under paddy is 20 Ha (Source: agriculture Department) where as the extent of paddy as per the existing land use map 2010 is 1.18 Sq.Km (2.92% of total municipal area). Hence it is inferred that major share of paddy area is being kept as vacant. It is also noted that Paddy production drastically increased from2008-2009 to2009-2010 and slightly decreasing further onwards. Hence it may be assumed that paddy cultivation is not seriously attempted in the municipality may be because of paddy production is not financially viable when comparing with the expenditure and the trend of shifting of labours from primary sectors to secondary and tertiary sectors.

10.4.1 Irrigation Facilities The agriculture in Kalpetta is mainly depends upon rain. At present municipality have no

such irrigation facilities. The available paddy area of the municipality is 1.18 Sq KM; hence it is essential that an intervention is to be needed in the irrigation sector to avail irrigation facility in the municipality, so as to enhance the paddy production.

10.4.2 Agriculture inputs and Marketing facilities

Agriculture input units include fertilizer, shops, market, units supplying Machineries, seed

farms etc. The principal agriculture office, Krishi bhavan, 2 fertilizer shops and 3 insecticides Depot also located in the town. There is no facility for value addition of the agriculture produces.

10.4.3 Problems and Potentials 95.75 % of the total agricultural area in the municipality is dry cultivation, which depends

upon rain. There are no irrigation facilities. Other problems faced in this sector are the increased production cost, non-availability of agricultural labourers, destructiveness of wild animals especially monkeys, absence of efficient mechanization for paddy cultivation, various diseases found, lack of marketing facilities etc. The cultivation without considering terrain of the land also

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Economic Sector

causes soil erosion and thereby reduction in crops. By physical analysis it is seen that conversion and subdivision of agricultural land for other purposes for taking place in the municipality.

Even though a large area is under cultivation in the town, the income generated is not commensurate with the production. Product diversification system and value addition process of the produce may be resorted to tackle the problem. Homestead agricultural activities can be promoted in that area where the character of mixed land use is found as either semi urban or semi rural. Since the availability of large area of agriculture and the presence of higher level agricultural related agencies such as office of the principal agricultural officer and Krishi bhavan may be considered as the potential available in this sector and there is scope for promoting urban agriculture activities such as production of vegetables for own use , export oriented floriculture etc.

10.4.4 Inference

Agricultural land covers 68.75 % of the total municipal area. Coffee is the major

cultivation in the municipality. Major Commodities including vegetable and fruits are imported from neighbouring states. The number of cultivators and agricultural labourers are seen decreasing and majority of workers are entering into tertiary sector which making agricultural production uneconomical due to unavailability of labourers. There is no organized market in the town. The product diversification system and value addition of hill produce have tremendous scope in the sector. 10.5 Animal Husbandry

Animal husbandry activities are considered as agriculture allied activities. Since the

agriculture sector is thrust area, animal husbandry sector has an important role in the municipality. The main livestock population includes are Cattle, Buffalo, Goat, Pig, Hen and Duck etc. The physical status of livestock population in the municipality is shown in Table10.6.

Table 10.6: Livestock population in Kalpetta municipality

Type Nos Cattle 898 Buffalo 5 Cock 1660 Duck 65 Pig 43 Goat 1008

Source: Animal Husbandry Department-year-2010

10.5.1 Production Status The important livestock products are meat, milk, egg etc.

10.5.1.1 Meat As per the Survey, it is observed that at present there is a demand of 1.50T of meat and

1.207 T of Poultry in the Kalpetta per day. Also there is need for 8500 egg/day. At present

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most of the Cattle and Poultry are imported from Tamilnadu and Karnataka for domestic use. Consumption of Livestock producers are shown in Table 10.7 in the municipality.

Table 10.7: Consumption of Livestock produces

Product Consumption per month Meat Cattle 260 Nos

Chicken 24000 Nos Egg 255000 Nos Milk 63000 litres

Source: Animal Husbandry Department-year-2010

10.5.1.2 Milk

There are 2 dairy farms in the Municipality. The MILMA plant at Chuzhali is well equipped and produces various milk products. There are 9 milk collecting centres operated by co-operative society in the town and collecting 2,100 litre milk/day. The present demand for milk as per available data is in 5,400 litres/day and present collection is only 2,100 litres/day. Hence the gap in supply is to be met by importing from neighbouring LSGIs. As per the data available it is seen that 2, 75,000 litres of milk collecting through either Milma or various co-operative societies (Diary) in the district. The share of production of milk by Kalpetta with respect to the district is very nominal.

10.5.2 Physical Infrastructure

The district veterinary hospital is located in Kalpetta Municipality. The veterinary university located at Pookkode in Vythiri Grama Panchayath is merely 12Km away from Kalpetta. Due to the presence of MILMA Plant at Chuzhali and slaughter house owned by municipality, which is nearing completion at Goodalaikkunnu will have great input in this sector. Hence the infrastructure available is satisfactory with respect to present requirement. At present slaughtered meat from nearby LSGs are being brought to the town.


The cost of feed has increased in such a way that cattle rearing has become non

profitable for small scale unorganised farmers. However the Municipal area with its large extent of dry cultivation, availability of water, large area available for fodder cultivation and raising domestic demand for livestock produces etc, are influence good potential for development of this sector. Moreover the presence of “Brahmagiri Meat Processing Centre (An export oriented project) at Nenmeni Grama Panchayath” requires huge quantity of livestock which will enhance the potential under this sector. Since the district has important role in the tourism map the by- products from milk such as sambaram, milk peda, other products etc have huge demand especially for foreign tourists. The presence of infrastructure such as MILMA processing plant, district veterinary hospitals etc give ample scope in the development of this sector.

10.5.4 Inference

The economy of the municipality depends mainly on agriculture and animal husbandry.

There is high potential in this sector due to the raising domestic demand as well as the presence

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Economic Sector

of Brahmagiri meat processing unit at Nenmeni Grama Panchayath and demand of by- products. Hence due consideration has to be given to promote the Cattle farms, goat farms, pig farms and poultry etc. in the municipality so as to enhance the local economy. 10.6 Fisheries

Kalpetta has no coastal area, kayals and large ponds. Hence fisheries do not have an important role in the municipality.

The project “Matsya Kerala” launched by the Fisheries Department covers places where there is no scope for marine fisheries. The thrust is on fresh water and ornamental fish species. Under this scheme seeds are supplied to the farmer. This project can be utilised for the fisheries sector.


Due to the unavailability of large water bodies and lack of entrepreneurs the fisheries

sector has no role in the economy of the municipality. But the demand of fish is met by importing from Kozhikode. There are 15 ponds available in the municipality which can be utilised for fresh water fisheries and ornamental fisheries. The presence office of the Assistant director, fisheries at Vythiri in Vythiri Grama Panchayath gives ample scope in the development of the sector.

10.6.2 Inference Even though there are no fish farmers in the municipality due to the unavailability of

large water bodies and lack of entrepreneur, the available 15 ponds can be utilized in the sector.

Documents

CHAPTER 10 ECONOMIC SECTOR - Kalpetta Municipality - 10... · the most potential categories in the case of Kalpetta municipality ... Fig 10.2 Spatial distribution of Industrial