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160 Chapter-9 Commodity Boards and other Development Authories I. Tea India is the largest producer and consumer of black tea in the world. Tea is grown in 16 States in India, of which Assam, West Bengal, Tamil Nadu and Kerala account for about 95 % of the total tea producon. The tradional States where tea is grown to a small extent are Tripura, Himachal Pradesh, Uarakhand, Bihar and Karnataka. The non-tradional States that have entered the tea map of India in the recent years include Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Orissa and Sikkim. The teas originang from Darjeeling, Assam and Nilgiris are well known for their disncve quality the world over. Tea exports contribute foreign exchange into the country; the sector also contributes revenue to the tea growing states and naonal exchequer by way of VAT, agricultural and corporate income tax, etc. The tea industry provides direct employment to more than a million workers, of which a sizeable number are women. Addionally, more than two million people derive their livelihood from ancillary acvies associated with the industry. Tea Board Tea Board is an autonomous body under the Ministry of Commerce & Industry, Government of India set up as a statutory body on 1 st April, 1954 as per provision under Secon (4) of Tea Act 1953. It is an apex body which looks aſter the overall interests of the tea industry. The Board is headed by a Chairman and consists of 30 members appointed by Government of India represenng various interests pertaining to Tea Industry. The Board’s Head office is situated in Kolkata and there are 16 regional/sub-regional offices throughout India. It has also three overseas offices at London, Moscow and Dubai whose acvies are mostly promoonal in nature. Tea Board has wide funcons and responsibilies which include measures for development of the tea industry, extending financial and technical assistance to the tea growers, manufacturers and producers, export promoon and domesc generic promoon, regulang and controlling different markeng acvies including that of Tea Aucons, facilitang R & D acvies, market liaison, assistance to labour welfare acvies, maintenance of stascal data etc. Producon of Tea Tea producon in India during the year 2010- 11 has been esmated at 966.73 million kgs as against 991.18 million kgs achieved in 2009-10. The producon had declined by 24.45 million kgs when compared to previous year because of marginal decline in producon in Assam due to adverse climac condions. During the period April-October, 2011-12, tea producon is esmated at 752.76 million kgs against 719.67 million kgs achieved during corresponding period of last year thus showing an increase of 33.09

Chapter-9 Commodity Boards and other Development CHAPTER-9 Commodity Boards and other Development Authorities million kgs due to improved weather conditions in Assam. Exports Exports

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Chapter-9

Commodity Boards and other Development Authorities

I. Tea

India is the largest producer and consumer of

black tea in the world. Tea is grown in 16 States in

India, of which Assam, West Bengal, Tamil Nadu

and Kerala account for about 95 % of the total

tea production. The traditional States where tea

is grown to a small extent are Tripura, Himachal

Pradesh, Uttarakhand, Bihar and Karnataka. The

non-traditional States that have entered the tea

map of India in the recent years include Arunachal

Pradesh, Manipur, Meghalaya, Mizoram,

Nagaland, Orissa and Sikkim. The teas originating

from Darjeeling, Assam and Nilgiris are well

known for their distinctive quality the world over.

Tea exports contribute foreign exchange into the

country; the sector also contributes revenue to

the tea growing states and national exchequer by

way of VAT, agricultural and corporate income tax,

etc. The tea industry provides direct employment

to more than a million workers, of which a sizeable

number are women. Additionally, more than

two million people derive their livelihood from

ancillary activities associated with the industry.

Tea Board

Tea Board is an autonomous body under the

Ministry of Commerce & Industry, Government of

India set up as a statutory body on 1st April, 1954

as per provision under Section (4) of Tea Act 1953.

It is an apex body which looks after the overall

interests of the tea industry. The Board is headed

by a Chairman and consists of 30 members

appointed by Govern ment of India representing

various interests pertaining to Tea Industry.

The Board’s Head office is situated in Kolkata

and there are 16 regional/sub-regional offices

throughout India. It has also three overseas

offices at London, Moscow and Dubai whose

activities are mostly promotional in nature. Tea

Board has wide functions and responsibilities

which include measures for development of the

tea industry, extending financial and technical

assistance to the tea growers, manufacturers

and producers, export promotion and domestic

generic promotion, regulating and controlling

different marketing activities including that of

Tea Auctions, facilitating R & D activities, market

liaison, assistance to labour welfare activities,

maintenance of statistical data etc.

Production of Tea

Tea production in India during the year 2010-

11 has been estimated at 966.73 million kgs as

against 991.18 million kgs achieved in 2009-10.

The production had declined by 24.45 million

kgs when compared to previous year because

of marginal decline in production in Assam

due to adverse climatic conditions. During the

period April-October, 2011-12, tea production is

estimated at 752.76 million kgs against 719.67

million kgs achieved during corresponding period

of last year thus showing an increase of 33.09

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CHAPTER-9 Commodity Boards and other Development Authorities

million kgs due to improved weather conditions

in Assam.

Exports

Exports of tea from India during 2010-11 stood

at 213.79 million kgs valued at `2995.79 crores

with a unit price realization of ` 140.13 per kg

as against 213.43 million kgs valued at `3038.69

crore with a unit price of `142.37 per kg in 2009-

10. During the period April - December 2011-12

exports of tea have been estimated at 147.11

million kgs valued at `2167.76 crores with a unit

price of `147.36 per kg against 168.03 million

kgs valued at `2321.48 crores with a unit price of

`138.16 per kg during the corresponding period

of last year.

Imports

Imports of tea into India during the financial

year 2010-11 were 19.26 million Kgs. valued at

US$ 41.02 million with a unit price of US$ 2.13

Source: Department of Commerce, Government of IndiaE-Estimated for production only.

per Kg. as against 25.84 million kgs. valued at

US$ 45.01 million with a unit price of US$ 1.74

per kg in 2009-10. Out of the quantity of tea

imported, 9.65 million Kgs. was for re-export

and the balance 9.61 million kgs. was meant for

domestic consumption.

During the current financial year 2011-12 (April –October), import of tea is estimated at 9.91 million kgs. with a value of US$ 20.46 million and unit price of US$ 2.06 per kg. as against 11.55 million kgs. with a value of US$ 23.84 million and a unit price of US$ 2.06 per kg. during the corresponding period last year. This shows a decrease of 1.64 million Kgs. in quantum, US$ 3.38 million in value over the corresponding period of last year.

At present, basic import duty on tea falling

under the head 0902 is 100% and on instant

tea falling under head 210120 is 30%. However,

duty free import of tea is allowed under the duty

exemption scheme and/or by EOU/SEZ units

Chart 9.1

Tea Production & Exports

162

Annual Report 2011-12

subject to the condition of its re-export and

value addition. Under the Indo-Sri Lanka Free

Trade agreement, tea from Sri Lanka upto 15

million kgs. annually is allowed to be imported

into India at a concessional rate of import duty

of 7.5%

Table 9.1

Estimated Value earnings (in ` crores) from Exports of Tea from India

YearExports

Unit Price (` /Kg)Qty (M.Kgs.) Value ( `Crores)

2007-08 185.32 1888.68 101.91

2008-09 190.64 2381.79 124.94

2009-10 213.43 3038.69 142.37

2010-11 213.79 2995.79 140.13

2011-12 [Apr-Dec](E) 147.11 2167.76 147.36

2010-11 [Apr- Dec] 168.03 2321.48 138.16

(E) Estimated

Prices

The average price of tea sold at Indian auctions

during January to December, 2011 was ` 103.39

per kg as against the average price of ` 104.66 per

kg during the corresponding period of last year.

Table 9.2

Prices of All Tea at North, South and All Indian Auctions

(Price in ` / Kg)Months North India South India All India

2011 (P) 2010 2011 (P) 2010 2011 (P) 2010

January 103.86 101.74 76.63 75.75 97.29 94.83

February 94.42 91.88 77.13 73.68 88.36 86.96

March 81.93 81.52 75.46 69.53 78.24 75.43

April 128.39 108.86 71.35 68.99 96.37 84.50

May 128.80 117.63 68.78 65.27 107.39 98.63

June 133.92 125.95 62.77 60.29 110.16 102.52

July 131.55 126.57 63.55 58.88 111.13 104.77

August 121.14 130.91 66.91 59.08 108.13 114.67

September 120.58 129.11 70.46 69.60 110.08 113.84

October 119.04 126.57 75.50 71.83 105.97 111.98

November 113.69 125.90 70.40 72.09 104.82 115.13

December 107.62 123.55 67.85 71.92 100.11 113.73

Up to December 116.29 119.51 70.03 67.69 103.39 104.66Source: Tea Board(P) Provisional Note: Price excluding Amritsar Auction

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CHAPTER-9 Commodity Boards and other Development Authorities

Table 9.3

Prices of Total Tea at different Indian Auctions during January to December 2011 (Price in ` / Kg)

Auction Centres Average Price Increase (+) or decrease (-) in Price during 2011 over 20102011 (P) 2010

Kolkata 129.44 132.97 (-) 3.53

Guwahati 108.49 112.93 (-) 4.44

Siliguri 103.46 104.44 (-) 0.98

North India 116.29 119.51 (-) 3.22

Cochin 80.21 77.45 (+) 2.76

Coonoor 63.38 61.11 (+) 2.27

Coimbatore 65.95 63.49 (+) 2.46

Tea Serve 57.79 54.98 (+) 2.81

South India 70.03 67.69 (+) 2.34

All India 103.39 104.66 (-) 1.27Source: Tea Board(P) Provisional & excluding Amritsar Auction and subject to revision

Tea Development

One of the important functions assigned to Tea Board under the Tea Act includes formulation and implementation of development schemes aimed at increasing tea production and productivity of plantations, modernization of tea processing, packaging and value addition facilities and encouraging co-operative efforts amongst small tea growers.

Financial assistance for the above activities are extended by way of Long term Loan, subsidy and grant in aid through the Development schemes approved for implementation during the Eleventh Plan period. The sanctioned outlay for XI Plan period was `800 crores and the current financial year was ` 180 crores.

Activities supported under the Plan

Schemes

1. Special Purpose Tea Fund Scheme (SPTF)

The objective of the scheme is to encourage tea

gardens to take up uprooting and replanting of

old aged tea bushes for improving production

and productivity for competitive sustenance. This

scheme launched in April 2007 was continued

during the year under report.

The scheme provides for: -(a) Long term loan @ 50% of unit cost (bearing

simple interest @9.5% and repayable over a period of 13 years with moratorium of first 5years);

(b) Subsidy @ 25% of unit cost; and

The loan funds are sourced from a consortium of

four nationalized Banks (IDBI,UCO, Vijaya, UBI) by

way of line of credit. Tea Board borrows the loan

from the banks @9% p.a and lends it to tea gardens

@9.5%.

The unit cost of replanting is based on the

assessment made by NABARD from time to time.

The total area developed and financial assistance

extended between 2007 and 2011 add up to 27761

ha and ` 114.35 Crores as subsidy and ` 47.68

crores as loan.

164

Annual Report 2011-12

2. Tea Plantation Development Scheme

This scheme provides for extending financial

support to tea gardens for creation of irrigation,

drainage and transportation facilities, new planting

in NE Region and in hilly areas above 2500 ft above

MSL by the small growers holding less than 4 ha

and supporting the small growers to organize

themselves into the Self Help Groups. The total

financial assistance extended between 2007 and

2011 add up to ̀ 34.12 crores towards new planting

in 3670 hectares, irrigation 13133 hectares, and

formation of 237 SHGs of small growers.

3. Quality Upgradation and Product Diversification Scheme

This scheme provides for extending financial

assistance by way of subsidy for modernization of

the processing factories by replacement of old and

worn out machinery, setting up of new factories by

the Self Help Groups of small growers, procurement

of processing machinery for orthodox tea in 100%

CTC factories. Quality assurance certification for

ISO/HACCP and Organic Tea, setting up of new

factories for production of green tea, orthodox tea

and specialty teas etc., product diversification, and

incentive scheme for orthodox tea production etc.

The total financial assistance extended between

2007 and 2011 add up to ` 201.80 crores towards

modernization of 1100 tea factories, value addition

in 95 packaging and blending units, obtaining quality

assurance certifications and organic certification

by 177 units and production of 384 million kgs of

Orthodox tea.

4. Human Resource Development Scheme

The activities supported under the scheme aim

at skills improvement at all levels from workers

to managers through extensive training and labor

welfare measures. The welfare measures are in

the nature of complementing statutory provisions

of Plantation Labour Act. These include health,

hygiene and educational support to the wards of

the plantation workers, sports activities and training

for all stake holders from workers to Managers etc.

The total financial assistance extended between

2007 and 2011 add up to ` 18.06 crores of which

` 1.65 crores on account of health & hygiene, `

10.57 Crores for Education and sports and ` 5.84

crores for training.

Table 9.4

Physical & Financial targets and Achievements during 2011-12 (up to December 2011)

(in ` Crores)S.No. Schemes and Activities TARGET ACHIEVEMENT

Financial Upto 15th Dec., 20111 T P D S 73 31.482 QUPD Scheme 75 59.153 HRD 5 2.854 Development Grant 2.50 3.25

Grand Total 155.50 96.73Physical

1 Tea Plantation Development Scheme (T P D S)New PlantingIrrigation and DrainageSHGs of small growersReplanting (SPTF)Rejuvenation (SPTF)

500 ha1500 ha 45 nos

6000 ha1000 ha

585 ha3611ha10 nos

2922 ha 444 ha

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CHAPTER-9 Commodity Boards and other Development Authorities

2 Quality Upgradation and Product Diversification (QUPD ) Scheme:Factory modernizationValue additionQuality CertificationIncentive for Orthodox tea production

130 nos.30 nos.30 nos.

80 m.kg

250 nos. 15 nos. 22 nos.78 m.kg

3 Human Resource Development Scheme (HRD)Capital grant to hospitals for expansion and medical equipmentsEducational stipends/scholarships, books and school uniform grants to wards of tea plantation workersCapital grant to school/colleges in tea plantation areas

10 Units

5000 students

10 Units

1 Unit

1200 students

1 Unit

5. Development Grant

The development grant component is used mainly

for meeting the developmental needs of the small

tea growers who account for nearly 25% of all India

tea production. The activities supported for the

benefit of the small growers include, setting up of

tea nurseries, organizing study tours and workshops

and Strengthening of field offices for closer interface

with small growers in non-traditional areas. The

total financial assistance extended between 2007

and 2011 add up to ` 16.38 crores.

6. Organic Tea Development Project

This project of three-year term was launched

in September 2008 in collaboration with FAO,

Common Fund for Commodities and IFOAM

for establishing scientific package of practices

for organic tea, harmonization of certification

parameters and identification of market potential

and development of marketing strategies for organic

tea in the world market. The tenure of the project

was extended for a further period of 2 years with

effect from September 2011. During the year steps

have been initiated for establishment of Capacity

Building centre for conducting training as well as

act as information centre. Training programmes

have also been organized for the stake holders. An

agency has been selected to explore the demand

for organic tea in the domestic market.

7. Development of Geographic Information System

This project has been taken up in collaboration

with ISRO for mapping of tea growing areas in

Assam and West Bengal. About 1000 gardens have

been mapped after taking into consideration the

cadastral maps and satellite data including GCP

Collection from Assam and Bengal. Software has

also been developed to track the progress of field

activities, particularly the replanting undertaken

with financial support from Tea Board.

8. Energy Conservation in small tea processing factories in South India

This project of four year term was launched during

2008-09 and continued during the year under

report. It aims at removal of barriers to energy

conservation and energy efficiency that inhibit

the realization of large energy saving potential in

the tea sector. This project is partly funded by the

United Nations Development Program – Global

Environment Facility (UNDP-GEF). Data collected

so far, shows that project interventions have

resulted in about 90 factories adopting at least one

energy efficient recommendation. The project has

introduced renewable energy interventions to the

tea factories. As a result of project interventions it

166

Annual Report 2011-12

has been estimated that the tea industry has saved

close to 50,000 tons of CO2.

Reopening of closed tea gardens

With the stability in tea prices, 32 out of 35

gardens reported earlier as closed have since been

re opened. Only three remain closed – one in

West Bengal and two in Kerala mainly due to legal

hurdles.

Licensing

The Licensing Branch of the Tea Board is responsible

for implementation of various statutory and

regulatory provisions of the Tea Act 1953 and

orders issued by the Government from time to

time. The Licensing Branch issues permission for

planting and replanting tea under Section 12 of

the Tea Act, 1953. Licensing Branch also issues

registration for tea manufacturers (both estate

and bought-leaf factories). The Licensing Branch

also issues registration to Buyers under the Tea

(Marketing) Control Order, 2003. The Licensing

Branch issues business licenses for tea exporters

and distributors; non-preferential certificate of

origin for tea exporters; Tea Waste license; Tea

Warehousing licenses etc.

The total number of exporters registered with Tea

Board under the provisions of Tea (Distribution

& Export) Control Order, 2005 with valid export

licenses stood at 1278 as on 31.03.2011 as against

1175 as on 31.03.2010. During 2011-12 (up to 30th

November, 2011), a total of 68 temporary exporters

license were issued.

A total number of 470 [3 Permanent exporters

license were cancelled] Permanent Exporter’s

licence were issued up to 2010-11. During the year

2010-11 no exporters licence was converted to

Permanent licence. During the current year 2011-

12 (up to 30th November, 2011) only one Permanent

Exporter license was issued and 11 (eleven)

Permanent exporters license were cancelled.

The total number of Distributors’ Licenses issued

was 7 during 2010-11. During 2011-12 (up to 30th

November, 2011) 5 Distributors’ Licenses were

issued.

The total number of certificates of origin issued

by Tea Board towards export of Darjeeling tea was

1891 during 2010-11 as against 1866 issued in the

same period of 2009-10.

During 2010-11 the Licensing Branch granted

registration to 12 flavoured tea manufacturers

under provisions of the Prevention of Food

Adulteration Act (PFA). During 2011-12 (up to 30th

November 2011) 17 flavoured tea registrations

were issued under PFA.

TEA PROMOTION

Indian tea, in the domestic and the international

markets, requires new initiatives from the Tea Board

as well as the tea industry for meeting emerging

challenges. In keeping with the requirements of

the export and domestic markets, there was a

focus on quality control. Implementation of ISO

3720 Standards and HACCP (Hazard Analysis &

Critical Control Points) has therefore acquired

growing importance. Efforts continued to be made

to persuade producers to increase production of

exportable quality teas & good teas of orthodox

variety.

Tea Board carried out promotional activities mainly

through its overseas offices located at London,

Moscow and Dubai. The post of DTP, Moscow has

been vacant for 2 years and hence limited activities

have been undertaken to Russia and CIS region.

Some tea promotion abroad is carried out through

various Tea Councils. Currently India is an active

member only of the Tea Council of USA. Indian

tea promotional activities are also carried out by

the Board’s foreign offices to enhance demand

167

CHAPTER-9 Commodity Boards and other Development Authorities

for Indian tea and increase market share. Other

activities include market surveys, market analysis

and tracking of consumer behavior, registering

of Board’s Logos in various markets as well as

popularizing the usage of these logos in order to

enhance the equity of Indian Tea and its various

sub-brands. The markets in Russia, CIS, UK, Pakistan

and UAE continued to be of vital importance. With

the lifting of COMESA, prospects of tea exports to

Egypt have also opened up.

The Board has organized a number of promotional

activities in the country propagating the health

benefits of tea aimed at the youth and young

house-wives. Generic tea promotion campaign was

on a low key during 2011-12 on account of paucity

of funds.

Efforts are being made to maintain and improve

trade relations between exporters and importers

by direct contact and discussions. Deputations /

delegations from India were also organized during

2011-12. Chairman Tea Board also led Trade

Delegations with a view to enhancing exports

of teas from India. Tea Board has participated

in International Fairs / Exhibitions in traditional

markets. With a view to diversifying the market

portfolio, the Tea Board explored potentials for the

2nd time in South Africa – a new market.

Box: 9.1

Intellectual Property Rights (IPRs)

Tea Board’s application for registration of DARJEELING as a Protected Geographical Indication •

under European Council Regulation 510/2006 was accepted and published. This application is a

very important step in the protection of DARJEELING because once registered, DARJEELING will be

protected, inter alia, against any misuse, imitation or evocation or use accompanied by expressions

such as “style”, “type”, “method”, “as produced in”, “imitation” or similar in the European Union.

The Tea Board continued to challenge, by way of opposition/invalidation/cancellation actions, legal •

notices, court actions and domain name cancellations instances of attempted registrations and

misuse of these tea names and logos both at the domestic and international level. In this connection,

the Indian Trade Mark Office last year issued around ten orders in favour of the Tea Board.

The ‘Assam’ orthodox word and logo and the ‘Nilgiri’ orthodox word and logo have recently been •

registered as Geographical Indication which is another big step in promoting the origin speciality

logos. Tea Board has continued its objectives to protect and preserve its various tea names and logos

as India’s treasured geographical indications and icons of India’s cultural and collective heritage.

168

Annual Report 2011-12

Brief details of IPR achievements are at Table 9.5:

Table 9.5

Registrations obtained during 2010-2011

S. No

Country Nature and subject matter of registration

Application / Registration

No.

Date of Application

Date of Registration

Validity

1. Russia Trademark for INDIA TEA LOGO

414383 29.12.2008 23.07.2010 29.12.2018

2. EU member countries

Community Collective Mark for DARJEELING logo

008674327 10.11.2009 23.04.2010 10.11.2019

3. EU PGI for DARJEELING word under EC Regulation 510/06

INPGI / 0005-0659

12.11.2007 20.10.2011 Till Repeal / Cancel

Table 9.6

Details of pending applications

No Country Nature and subject matter of registration

Application No. Status

1. Japan Regional Collective mark for DARJEELING word

No. 2007-103568 Examined

With regard to the pending application in Japan,

Tea Board has contacted its various licensees to

gather information on use and fame of DARJEELING

and filed the same.

Oppositions in India

Total 28 oppositions were filed by the Tea Board

in India during the period 2010-2011 to prevent

attempted registrations and misuse of DARJEELING,

ASSAM, NILGIRI tea names and logos as well as

the INDIA TEA Logo. During the year 2010-11,

in recognition of the Tea Board’s rights and to

settle the matter, 5 Applicants have removed the

objectionable name/logo from their labels. 20

oppositions were decided in favour of the Tea Board

because the Applicants did not contest the Tea

Board’s claims or settled the matter in recognition

of the Tea Board’s rights in the same period.

Litigation in India

Tea Board filed an action for infringement against

ITC Limited to restrain it from using DARJEELING as

part of the name of a lounge named DARJEELING

LOUNGE in one of its hotel in Kolkata. The interim

injunction application of the Tea Board was rejected

by the Single Judge of the High Court of Kolkata.

However, since the order suffers from errors of

law and fact, Tea Board is in the process of filing

an appeal.

Oppositions/Cancellation Actions outside India

7 oppositions/cancellation actions were filed by

the Tea Board in foreign jurisdictions in the period

2010 – 11. All these actions pertain to use of

DARJEELING word/logo marks by third parties. 1

action was in China, 4 in EU, 1 in France and 1 in

169

CHAPTER-9 Commodity Boards and other Development Authorities

Argentina. The party in Argentina has decided not

to pursue its application after the objection from

Tea Board. In addition to the above, an action in

South Africa is under consideration.

Success in Taiwan

The Intellectual Property Court of Taiwan has upheld

the decision of the Taiwan Intellectual Property

Office through which it had ordered cancellation of

the mark DARJEELING in class 25 in the name of

Delta Lingerie, France. The IP Court confirmed that

not only the marks of the parties are similar but

also confirmed the same of Tea Board’s DARJEELING

mark. The Court held that DARJEELING mark has

obtained high degree of distinctiveness and should

be protected from dilution. The Court observed

that though there may not be any confusion as the

business interests of the parties are not correlated,

due to the fame of DARJEELING, use of an identical

mark on unrelated goods dilutes and distracts

the single source indication and diminishes the

distinctiveness of the famous DARJEELING mark.

Tea Research

Tea research in India covers basic, applied

and regulatory research aspects such as plant

improvement (breeding and biotechnology), plant

production (agronomy and soil science), plant

protection (mycology and entomology) and tea

quality including biochemistry, tea tasting and

processing, electronics and engineering mainly

through three tea research institutes, namely

Darjeeling Tea Research and Development Centre

(DTR&DC), Kurseong, Darjeeling, West Bengal; Tea

Research Association (TRA), Jorhat, Assam and

United Planters’ Association of Southern India –

Tea Research Foundation (UPASI-TRF), Valparai,

Tamil Nadu. The research directorate of Tea Board

has been entrusted to conduct, coordinate and

evaluate tea research nationally through theses

institutes. As per the provision of Tea Act, 1953

Tea Board of India has been continuing to support

and promote tea research for the development of

Indian tea Industry.

To cater to the needs of Darjeeling tea industry,

DTR&DC, Board’s own research institute located at

Kurseong is engaged in the R&D activities whereas

TRA and UPASI are involved to look after the

requirement of tea industry of North East India and

South India respectively. TRA and UPASI operate

through each of their seven advisory centers

scattered throughout different tea plantation areas

in their respective zones. Both these Institutes are

being granted financial support to the tune of

80% (Grant-in-aid: 49% and AED: 31%) on certain

identified items to carry out effective tea research

useful for the Industry. DTR&DC has comparatively

small infrastructural facility and manpower strength

which is fully financed by Tea Board, Government

of India. Apart from the above mentioned three

tea research institutes, research projects are

being given to other national R&D Institutes and

Universities to conduct research for the benefit of

Indian tea industry.

During 11th Plan period financial support have been

increased to all the three research institutes and

number of research projects were increased to 20

as against 11 in the previous plan (10th) schemes.

These institutes are providing both basic and

applied research information on tea cultivation,

plant protection and package of practices

required from time to time for the management

of tea plantation, increase of productivity and

enhancement of quality.

The fund allocation on account of R&D for the

year 2010-11 was ` 28,83,11,000.00. The financial

support given to TRA on account of Grant-in-aid

was `11,70,42,664.00 and AED ` 90,67,000.00

during 2010-11 . Similarly, UPASI was granted

`1,52,03,593.00 as Grant-in-aid and ̀ 64,55,335.00

170

Annual Report 2011-12

as AED. Tea Board also granted ` 3,00,000.00

as recurring expenditure to Assam Agricultural

University, Jorhat for their tea technology course at

the graduate level and ` 3,50,000.00 to Himachal

Pradesh Krishi Viswa Vidyalaya (HPKVV), Himachal

Pradesh during 2010-11. Under ASIDE scheme,

` 2,50,00,000.00 was released to DTR&DC,

Kurseong, Darjeeling for continuation of building

infrastructure. For the upgradation of DTR&DC,

an amount of ` 39,01,291.00 was released for

infrastructural development and procurement of

equipments etc.

LABOUR WELFARE MEASURES: 2011-12

The Tea Board undertakes various welfare

activities for tea plantation workers and their

dependants through Labour Welfare Scheme. The

welfare activities undertaken by the Board are

supplementary to the provisions of the Plantation

Labour Act (which is implemented by the State

Governments) in nature and cover general welfare

measures. The labour welfare activities are funded

through the Human Resource Development Scheme

of the Board as approved under the 11th Plan. The

HRD Scheme aims at achieving improvements in

the life and living conditions of the Tea Plantation

labourers and their dependants on the following

three broad areas (a) improving the health of

workers; (b) education of wards of workers; and

(c) imparting training to improve skills for growers/

workers and plantation managerial staff etc. For

improving health of workers, the scheme aims to

provide safe drinking water to tea garden workers

and their family members and establish sanitary

latrines in the labour lines. Tea Board also helps

the tea gardens to establish/augment hospitals

and health centers with financial assistance to

construct buildings and provide them grant for

medical equipments and accessories, ambulance

etc. For specialized treatment, beds are reserved

in specialized hospitals/health clinics etc. for tea

plantation workers and their dependants. Special

schemes of family welfare education programme are

also undertaken in tea garden areas to educate the

workers on small family norms, prevention of Aids/

HIV infection, drug abuse etc. Scouting and guiding

activities are encouraged in the tea areas. Financial

assistance is also given to physically challenged

plantation workers and their wards by providing

crutches, caliper shoes, artificial limbs, hearing aids

etc. For education of wards of workers, educational

stipends are given for general education and also

for specialized education. Assistance is also given

for construction of school/college buildings in and

around tea areas for spreading education among

tea garden population. An amount of ` 98.63 lakhs

was spent during the period 01-04-11 to 30-11-11

as against `1.93 crores for the period 2010-11.

Hindi Cell (2011-12).

Hindi Cell of the Board continued to perform its

function in 2011-12 according to the Constitutional

provisions, and guidelines of Department of

Official Language(O.L), Ministry of Home affairs

and Department of Commerce, Ministry of

Commerce & Industry. Main activities included

providing training, translation and implementation

of O.L. provisions. Special emphasis was given

on adherence to Section 3(3) of O.L. Act, 1963.

Efforts were made to comply with the items laid

down in Annual Programme 2011-2012 issued by

the Government of India, Department of Official

Language, Ministry of Home Affairs.

Vigilance Cell

The Deputy Chairman of Tea Board is the Chief

Vigilance Officer (part-time) appointed so by the

Central Vigilance Commission. The overall activities

of the Vigilance Cell are being done under the

supervision of Chief Vigilance Officer. The main

function of the Vigilance Cell is to implement the

directives of the Government/Central Vigilance

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CHAPTER-9 Commodity Boards and other Development Authorities

Commission. The Vigilance Cell also attends the

various queries and submits monthly and quarterly

report to the Government as and when required.

The Law Officer of the Board is also working as

Vigilance Officer. This Cell is also taking care of

the overall Vigilance Surveillance activities of the

Board. There is no such vigilance case pending with

this cell as on date.

Legal Cell/ RTI Act, 2005

The main function of Legal Cell is to attend to all

kinds of legal matters both in headquarters and

outstation offices of the Board. The Legal Cell is

also maintaining Liaison with Board’s Solicitors/

Law Firms viz. M/S Fox & Mandal, M/S Rajesh

Khaitan & Co. and K&S Partners and other Legal

Consultants pertaining to the various legal issues of

the Board. The Cell is also looking after all matters

relating to the Intellectual Property Rights including

administration of various logo mark/ word mark

registered by the Board under different statutes in

India and abroad. The cell is also actively involved

in the recovery of outstanding loan and in the year

2010-11, more than 25 lakhs of rupees have been

recovered by the Board. This Cell is also responsible

for performing the job pertaining to the disposal

of applications made under Right to Information

Act, 2005 and sending return periodically to the

Ministry within a time bound programme. During

the year under review, Board has not lost any court

case of major importance.

II. Coffee

The Coffee Board is a statutory organization

constituted under the Coffee Act, 1942 and

functions under the Administrative control of the

Ministry of Commerce and Industry, Government

of India. The Board comprises of 33 Members

including the Chairman, who is the Chief Executive.

The remaining 32 Members representing the

various interests are appointed as per provisions

under Section 4(2) of the Coffee Act read with Rule

3 of the Coffee Rules, 1955.

The Board functions as the friend, philosopher and

guide to the Coffee Sector. The main functions of

the Coffee Board are as follows:

Promotion of agricultural & technological •research in the interest of coffee industry & transfer of technology to the growers on improving production, productivity & quality.

Providing assistance to coffee estates for their •development

Securing better working conditions & providing •amenities and incentives for farm workers

Promotion of the sale & consumption in India •and elsewhere of the coffee produced in India.

Management of all other operations as per the •provisions of the Coffee Act.

Gathering statistical & other relevant data •concerning the industry and dissemination of information to various segments of the industry.

Act as the recognized spokesperson on behalf •of the coffee industry to the Government, media, trade and general public.

Providing guidance for the overall growth and •development of the coffee industry in the country.

The Board has a Central Coffee Research Institute at Balehonnur (Karnataka) and Regional Coffee Research Stations at Chettalli (Karnataka), Chundale (Kerala), Thandigudi (Tamilnadu), R.V. Nagar (Andhra Pradesh), Diphu (Assam) and Bio-technology Centre at Mysore apart from the Extension Offices located in Coffee growing regions of Karnataka, Kerala, Tamil Nadu, Andhra Pradesh, Odisha and North Eastern Region.

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Annual Report 2011-12

Area under Coffee

Coffee is cultivated in an area of around 4.07 lakh

hectares predominantly in the traditional areas

covering the States of Karnataka, Kerala and Tamil

Nadu, which contributes around 98 percent of

the total production. Coffee is also cultivated to

some extent in Non Traditional areas of Andhra

Pradesh and Odisha and to a lesser extent in the

North Eastern States of Assam, Arunachal Pradesh,

Meghalaya, Mizoram, Tripura, Nagaland and

Manipur with main emphasis on tribal development

and afforestation. There are about 2.72 lakh coffee

holdings in the country, out of which around 2.67

lakh holdings (99%) constitutes the small growers’

category (upto 10 hectares) and the balance 1% of

the total holdings fall under large grower category

having above 10 hectares.

Coffee Production

The post blossom crop estimates for 2011-12 has

been placed at 3,22,250 MT consisting of 1,04,525

MT of Arabica and 2,17,725 MT of Robusta as

compared to the 2010-11 final crop estimates of

3,02,000 MT comprising of 94,140 MT of Arabica

and 1,07,860 MT of Robusta.

Chart 9.2

Production of Coffee in India (MT)

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CHAPTER-9 Commodity Boards and other Development Authorities

Productivity

Based on the estimated crop production for the

year 2011-12, the overall productivity of coffee

is 886 kg/ha. The productivity for Arabica is 633

kg/ha and for Robusta, it is 1095 kg/ha. As far

as the traditional area is concerned, the overall

productivity for 2011-12 is 968 kg/ha with the

productivity for Arabica being 764 kg/ha and that

for Robusta being 1100 kg/ha. Coffee is primarily

an Export Oriented Commodity and presently 70%

of Coffee is being exported while balance is being

consumed domestically.

Export of Coffee

The total quantity of coffee exported from India

during 2010-11 including re-exported coffee after

value addition was 2,95,344 Metric Tonnes. The

top five export destinations for Indian Coffee are

Italy, Germany, Russian Federation, Belgium and

Spain, which accounted for about 58% of our total

coffee exports. The coffee exports during 2010-11

has been the highest as compared to the previous

record of exports of 2,49,029 MT during the year

2006-07. The value realization out of coffee exports

during 2010-11 was ` 3317.04 crores.

The provisional coffee exports for 2011-12 covering

the period April – November 2011 are 2,28,578

Metric Tonnes valued at ` 3,139.58 crores, as

against the export target of 2,20,000 MTs for

2011-12. The volume of exports as well as value in

rupee terms and the unit value for 2011-12 so far,

has been high as compared to the same period of

previous year 2010-11.

Chart 9.3

Exports of Coffee from India (In MT)

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Annual Report 2011-12

Domestic Consumption

The coffee consumption survey 2009 carried out

to track consumption trends and attitudes analysis

has estimated the domestic consumption at

1,02,000 MT for 2009-10. It has been estimated to

be 1,08,000 (p) for the year 2010-11. The expected

consumption for 2011-12 is estimated at 1,15,000

MT. The process of assessment of domestic

consumption for 2011-12 is underway.

Several steps/programmes have been initiated

by the Board for supporting the domestic

market development of coffee. As the recent

surveys ( in 2008 and 2009) have indicated that

non-conventional coffee drinking areas, viz.

north, west and east of India have increase in

number of occasional consumers, which are the

potential segments to increase consumption. The

entrepreneurial Development trainings are given

to augment development of enterprise in roast and

ground coffee. This helps feed the rising demand

by setting up new roasting units/ increasing the

capacity of the existing units. 6 Kaapi Shastra training

programmes benefitting 142 participants have

been conducted. Market surveys are conducted

to develop insights into potentialities. Through

media campaigns for promoting awareness on

the support schemes for coffee, Coffee Board has

improved awareness on Coffee. The Coffee Board

participated in 37 exhibitions held in India in the

non-conventional coffee drinking areas.

Inauguration of India Coffee Centre at Bhopal by Hon’ble Minister of State

Mr Jyotiraditya M. Scindia

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CHAPTER-9 Commodity Boards and other Development Authorities

India International Coffee Festival,

2012

IICF 2012, the flagship event of the Indian Coffee

Industry, fourth in the series, has been organized

by the India Coffee Trust during January 18-20,

2012 at New Delhi, in a bid to expand demand

and services to non-conventional Coffee drinking

areas. This has potential for the expansion of coffee

consumption which, simultaneously, will provide

opportunities for value addition along the value

chain, and generate due investible resources for the

producers. The curtain raiser for this flagship event

had been done by Dr Rahul Khullar, Commerce

Secretary on 7 Dec, 2011.

Export Promotion

Flavour of India - Fine Cup Awards 2011: The Coffee

Board of India has been organizing Flavour of India

- The Fine Cup Award Cupping Competition every

year with an objective of promoting production of

fine quality coffees. For this 10th Flavour of India

Competition, out of 232 coffee samples (127 Arabica

samples and 105 Robusta Samples) received, 34

qualified for finals. The International Jury selected

four best coffees under category Arabica, Specialty

Arabica, Robusta and Specialty Robusta and ranked

the remaining coffees according to their merits.

This being the culmination of a decade long award,

the International Jury were felicitated by Mrs

Vijaylaxmi Joshi, Additional Secretary Plantations

at the Flavour of India Show at SCAE, Maastricht

in June, 2011.

The high quality Coffees of India earn premium.

However to increase the value earnings from

exports, considering the supply constraint due to

limited production base, it is important to increase

visibility in high value far off markets like USA, Japan,

Canada, Australia and New Zealand , while retaining

our strong base in the European Union. Export

incentives are extended by the Board to encourage

export of value added coffees in retail packs and

high value coffees to far off markets like USA,

Canada, Japan, Australia and New Zealand. These

efforts are supported by Participation in selected

international coffee centric trade conferences and

events, Organizing Cupping and Buyer-Seller Meets,

Coffee Board at India Show, Toranto, Canada

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Annual Report 2011-12

Increasing trade awareness on Coffees of India

as shade-grown, sustainable and scintillating by

inserting advertorials/Advertisements in prominent

overseas trade journals and magazines besides

maintaining constant high level interaction with the

International coffee community through proactive

participation in International Coffee Organization

and such bodies. Coffee Board showcased Coffees

of India at premium events in USA, Japan, Korea,

Canada, Italy, Germany, Australia, Russia, Ukraine.

Coffee Export Awards: The Coffee Board instituted

Export Awards in 1999-2000 to recognize and

honour the best performance of Coffee Exporters

so as to motivate, encourage and maximize their

export performance in export of Green Coffee,

value added segments like Speciality, Roasted and

Soluble Coffees as well as to regions viz., European

Region, Russia and CIS, U.S.A & Canada, Middle

East and North Africa (MENA) and Far East. The

performance of exporters for the year 2010-11 is

stellar.

Prices

Coffee prices in India are largely influenced by

the New York Exchange (NYBOT) for Arabicas and

London Exchange (LIFFE) for Robustas. The average

prices secured in international market during 2010-

11 was higher by 47% in case of Arabica (195.32 US

cents/lb) and by 28% in case of Robusta (82.82 US

cents/lb) as compared to the same period of 2009-

10. The average prices secured in international

market during 2011-12 (April-November’11) was

higher by 33% in case of Arabica (259.44 US cents/

lb) and by 23% in case of Robusta (101.91 US cents/

lb).

The average price secured in the auctions of Indian

Coffee Trade Association (ICTA) during April-March,

2010-11 was ` 203.94/kg for Arabica & ` 84.20/

kg for Robusta. The average price secured in the

auctions of Indian Coffee Trade Association (ICTA)

during April-November, 2011-12 was ` 280.03/kg

for Arabica and ` 113.82/kg. for Robusta.

XI Plan 2007-2012 Schemes of the Cof-

fee Board

The details of XI Plan schemes of the Coffee Board

under implementation during 2011-12 with a

budget allocation of ` 105.00 crores are:

1. Research & Development for Sustainable Coffee Production.

2. Development Support Scheme

3. Market Development

4. Risk Management to Coffee Growers

5. Export Promotion of Coffee

6. Support for Coffee Processing

7. Support for Mechanization of Farm Operations (New Scheme)

Coffee Research

The Coffee Board’s Research Department

continued research on coffee in the disciplines

of Plant Improvement, Crop Management, Plant

Protection and Post Harvest Technology & Quality

improvement under the XI Plan Scheme “R&D for

Sustainable coffee production”. The contributions

in terms of support to the coffee industry are as

follows.

From the Central Coffee Research Institute •and its Regional Stations, 7360 clones were supplied to the growers during 2011-12. 17 ha. of seed blocks located in the main and regional stations were maintained and production of seed coffee preparation was started.

A total of 1950 soil samples were analysed •and advisory rendered from CCRI and the Regional Stations. 400 Agro-chemical samples were tested for their purity. 185 leaf samples received from different coffee growers were analysed and reports dispatched.

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CHAPTER-9 Commodity Boards and other Development Authorities

For the eco-friendly management of coffee •berry borer, 41,775 broca traps with lure were supplied to growers in Karnataka and Kerala. For the replenishment of lure material 1,98,125 lure vials were supplied.

To encourage management of coffee berry •borer using the entomopathogenic fungus, Beauveria bassiana, 200 kg of rice culture and 150 litre of liquid culture were supplied to interested farmers. On-farm production units were also encouraged and periodic visits made for monitoring and advice.

For the management of coffee white stem •borer, 5250 cross-vane pheromone traps with bait were supplied to the growers on demand.

A Mission mode action programme on •management of coffee white stem borer in the Arabica coffee growing tracts of South India was launched. Twelve teams were formed to work in the field during the winter flight period of the stem borer. Ten teams were located in the hot-spots of borer activity in Karnataka and two were placed in Tamil Nadu. Each team would educate the growers on the stem borer and its control measures and also demonstrate the interventions available in ten locations. 75% of the envisaged target of 120 demonstrations has been achieved.

Work under the DBT project: ‘Development •of Arabica Coffee Plants Resistant to Coffee White Stem Borer’ was in progress. About 175 Bt strains were screened for virulence against the borer larvae.

Under the project: “Identification of female sex •pheromone and its role in mating success and identification of kairomone responsible for host plant selection by the coffee white stem borer” in collaboration with M/s. Pest Control (India) Ltd. Bangalore, volatiles from the beetles and stem of the coffee plants were collected and were being analysed using GC.

The publication of popular magazine, Indian •Coffee was continued to be published on a monthly basis. Thirteen extension folders pertaining to different aspects of coffee cultivation, were printed in vernacular knowledge (Kannada) for distribution to the growers.

Welfare support to Labourers & Tiny

Coffee Growers

Welfare support for the benefit of children of

labourers working in coffee plantations and coffee

curing works as well as the tiny coffee growers

spread over in the entire coffee growing areas

is being implemented during XI Plan period. An

amount of ̀ 150 lakh has been earmarked for 2011-

12 to operate various welfare measures aimed to

reach labourers and tiny growers.

Rainfall Insurance Scheme for Coffee

(RISC)

During 2010-11, the Rainfall Insurance Scheme for

coffee has been implemented for Blossom, Backing,

Monsoon with introduction of new option of

Post-monsoon showers (to cover the un-seasonal

rains during harvesting period of November to

February). About 19,400 coffee growers purchased

the insurance product during 2010-11. The total

premium collected was about ` 2.12 crores. The

premium subsidy amount w.r.t small growers (up to

10 ha) was about ` 1.05 crores which was settled

by the Board.

In Karnataka, around 700 growers got the pay-

out compensation to the tune of ` 63.58 lakhs for

monsoon option and 106 growers got pay-out to

the tune of ` 7.22 lakhs for post-monsoon option.

In Tamil Nadu, 690 growers got the pay-out to

the tune of ` 10 lakhs. The Agriculture Insurance

Company of India Ltd., (AIC) has settled all the pay-

out for 2010-11.

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Annual Report 2011-12

During 2011-12 also, the Coffee Board popularized

and marketed the products in collaboration with

the Agriculture Insurance Company of India Ltd.,

through its Extension Network. About 5700 growers

have purchased the monsoon showers insurance

coverage in Karnataka, Kerala and Tamil Nadu.

Scheme - Support for Mechanisation

of Farm Operations

The scheme on support for mechanization of coffee

estate operations is aimed at encouraging the coffee

growers to use farm machineries in carrying out

crucial farm operations on timely basis particularly

in the context of shortage of farm labour, so as

to improve labour efficiency and productivity.

The Government of India conveyed its approval

of the New Scheme “Support for Mechanization

of Farm Operations” for implementation during

the remaining period of XI Plan vide Letter No.

04/06/2009-Plant B dated 9.2.2011.

The scale of subsidy applicable to coffee growers

upto 20 Ha. holdings is 50% subject to a ceiling

of ` 2.00 lakhs, for coffee growers above 20 ha.

holdings is 25% subject to a ceiling of ` 4.50 lakhs

and for SHGs/Collectives of small coffee growers is

50% subject to a ceiling of ` 5.00 lakhs.

The machineries which are eligible for subsidy for

2011-12 includes Weed/Brush cutter, Telescopic

Pruner, Pit Digger, Hand held Battery operated

coffee harvester, Sprayer, Chain saw, Power tiller,

Mini tractor, Mini transporter/rubberized track

carrier.

Coffee Debt Relief Package – 2010

The Government of India communicated the

sanction for the implementation of the Coffee Debt

Relief Package – 2010 for the debt ridden small

coffee growers with a total implication of ` 241.33

crores vide order No 4/3/2008-Plant (B) dated 14th

June, 2010. The package has been implemented

during 2010-11 and the entire amount of ` 241

crores released by the Government of India has

been utilized. The Board proposed to settle the

pending/revised claims received from the Banks

during 2011-12. The package has been able to

provide relief to large number of small growers’

accounts (80%) wherein 85918 accounts out of

107337 accounts have been closed/ rescheduled.

III. Rubber

Natural Rubber

India has been continuously holding the first

position in Natural Rubber (NR) productivity since

2006. The productivity during the year 2010-11

was 1806 kg/ha. This achievement is remarkable

in view of the less favourable weather conditions

prevailing in most of the rubber growing regions

of the country. The hallmark of the Indian natural

rubber sector is the predominance of small and

marginal growers. Currently 90% of the area under

rubber and 93% of the production of rubber are

contributed by the smallholding sector comprising

1.19 million units. The average size of the rubber

holding in the country is around 0.54 hectare.

Area, Production and Productivity of NR

Rubber is successfully grown in the States of Kerala,

Tamilnadu, Karnataka, Tripura, Assam, Meghalaya,

etc. However, Kerala alone accounts for 75% of

the area occupied by the crop in the country. The

area under rubber in the Northeastern Region

increased substantially in the recent years, with

a share of 16% during the year 2010-11. The area

under rubber cultivation in India is 711,560 ha in

2010-11 registering a growth of 3.6%. Continuation

of subsidy schemes for new planting as well as

replanting, efficiency at grass root level extension

work, release of the new high yielding 400

series clones and favourable market for NR have

contributed to area expansion.

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CHAPTER-9 Commodity Boards and other Development Authorities

India continued to be the 4th largest producer of

NR in the world during the year 2010 with a share

of 8.2% of the global output. Production of NR in

the country was 861,950 tonnes in 2010-11 with a

growth of 3.7%. The estimated production during

2011-12 is 902,000 tonnes.

Consumption

India was the 2nd largest consumer of NR in

2010 after China. Unlike NR production, which

is characterized by a high degree of regional

concentration, consumption of NR takes place in a

rather disbursed manner throughout the country.

Total consumption of NR in 2010-11 was 947,715

tonnes with a growth of 1.8%. The auto tyre

sector registered a growth of 3.7% and the general

rubber goods sector recorded a negative growth

of 1.2% during 2010-11. The tyre & tube sector

of the industry, including retreads and cycle tyres

together, accounted for about 75% of consumption

of NR during 2009-10. Auto tyres & tubes alone

shared as much as 60% of the total consumption.

Consumption of NR during the year 2011-12 is

estimated at 977,000 tonnes with a growth of

3.1%.

Import

As per the import figures collected from various

ports up to 31st March 2011 the country imported

188,337 tonnes during 2010-11. The value of

NR imported during the year 2010-11 was `

2906.79 crore (US$ 637.9 million) . Almost 61%

of the import was through the Advance Licence

Scheme. It is noticed that 28% of the import was

through open channel during the year 2010-11.

The Department of Revenue, vide Notification

No. 128/2010-Customs dated 22nd December

2010, made amendments to import duty on NR by

allowing Tariff Rate Quota (TRQ) import of 40,000

tonnes of dry forms of NR at 7.5 % duty before 31-

3-2011. The normal import duty for dry forms of

NR is 20% or ` 20/kg, whichever is lower. Norms

of TRQ import was fixed in consultation with the

Rubber Board. Subsequently, the Directorate

General of Foreign Trade allotted 40,000 tonnes of

import on the basis of consumption of NR in 2009-

10 to 31 applicants. Despite 40,000 tonnes allowed

for import by the Government, actual import of NR

under TRQ was only 3360 tonnes up to 31st March

2011.

Export

Exporters of NR have utilized the advantage of price

differential between domestic and international

markets during the initial and terminal months

and exported 29,851 tonnes of NR during 2010-11.

The foreign exchange earnings from export of NR

during the year 2010-11 was ` 552.2 crore (US$

121.18 million). Branding of Indian NR for export

got initiated in February 2011.

Closing Stock of NR

Stock of NR in the country at the end of March

2011 was 288,300 tonnes.

Prices

The average price of RSS 4 grade NR in the

domestic market 2010-11 was ` 190.03 per kg as

against the price of the comparable grade (RSS

3) in international market at ` 195.55 per kg. The

domestic NR price was below the international

price from April to September 2011 and then, price

of NR in India has moved above international price

in October 2011. During April-October 2011-12,

the average domestic price of RSS-4 grade NR was

` 218.46 per kg as compared to the international

price of RSS-3 grade of ` 223.90 per kg.

Marketing System

Marketing System for Natural Rubber in the

country is perfectly designed with 9286 dealers

positioned across the country covering all the

rubber-growing belts. NR marketing system is

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Annual Report 2011-12

well supported by 120 value addition units and

164 exporters. To boost sales in the export and

domestic markets, the Rubber Board participated

in 2 overseas trade fairs and 6 domestic trade

fairs and provided opportunity to exporters for

participating and displaying their products. Also,

Indian Natural Rubber Logo launched by the Board

endorses the quality attributes of Natural Rubber

exported from the country and around 3000 MT of

branded Indian Natural rubber products has been

exported from India during April-October 2011.

An efficient price collection and dissemination

mechanism is in place to create awareness on

the daily price movements in the national and

international markets to the stakeholders. The

price dissemination system equips the growers

to fetch more than 95% of the realization in the

terminal markets, the highest in any agricultural

commodity.

Collection of Cess

Under Sections 12(1) and 12(2) of the Rubber Act,

the Board is entrusted with the assessment and

collection of a duty of excise as cess on indigenous

production of NR and remittance of the same to

the Consolidated Fund of India (CFI)). The rate of

cess effective from 1st September 2011 is ` 2.00

per kg. During the year 2010-11, the collection of

cess amounted to ` 103.25 crore against a target

of ` 100.00 crore. Collection of cess up to 31st

October 2011 is ` 80.30 crore as against the target

set for the year 2011-12 at ` 100 crore.

The Rubber (Amendment) Act 2009 came into

force w.e.f. 22nd January 2010. The amendment

made provision for charging interest on belated

payments and compounding of offence, which

acts as a deterrent against violation of the Act and

Rules by the licensees. The Board has collected

and deposited to the CFI, the interest on belated

payment of cess, @ 1.5% per month w.e.f.

01/11/2011, amounted to ` 44.46 lakh during the

year 2010–11 and ` 12.75 lakh during 1st April

2011 – 31st October 2011. Besides, collected

` 41.25 lakh during the year 2010–11 and `

35.83 lakh during April to October 2011 towards

compounding charges.

Planning

Plan schemes under 11th Five Year Plan were

monitored on a quarterly basis and prepared

outcome budgets. A National Committee was

set up under the chairmanship of renowned

agricultural scientist, Dr.M.S Swaminathan for

evaluating the XI Plan Schemes of Rubber Board.

The National Committee comprised the Chairman

and nine experts from different disciplines. The

evaluation was completed and the report adopted

in the final meeting of the National Committee

held on 30th June 2011 at M.S Swaminathan

Foundation in Chennai. The Board conducted

extensive consultations covering all segments of

rubber industry to get feedback of stakeholders

for formulating 12th Plan Schemes. The 12th Plan

(2012-17) and Annual Plan (2012-13) proposals

were drafted.

International Cooperation

The 107th Group Meetings of International Rubber

Study Group (IRSG) held from 11th to 14th July

2011 in Singapore unanimously elected India as

the new Chairman of the Group. India chaired the

annual meetings of Association of Natural Rubber

Producing Countries (ANRPC) held in Haikou, China

from 31st October to 4th November 2011.

Development / Extension Activities and Labour Welfare Schemes

The rubber plantation development activities are

targeted to improve the production and productivity

of rubber in the country. Technical know-how and

financial assistance to the growers for scientific

planting and maintenance of rubber holdings,

generation and distribution of good quality planting

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CHAPTER-9 Commodity Boards and other Development Authorities

materials, providing training for scientific harvesting

of the crop, promoting Rubber Producers Societies

& SHGs of small farmers for extension activities,

raising block plantations in association with State

Governments for the welfare of SC/ST, setting up

of Community Processing Centres by supporting

required infrastructure facilities.

Under Development schemes, the Rubber

Production department provided financial

assistance of ` 17.65 crore includes ` 4.61 crore

for SC/ST to farmers during April to October 2011

benefiting 138813 rubber growers. Under price

Stabilization Fund Scheme, 18919 growers were

enrolled as on 31st October 2011. During this year

up to October 2011, 23 RPS and 47 SHGs have

been organized. Under Productivity Enhancement

Scheme, input items worth of ` 7.24 crore have

been distributed among growers through RPS

and achieved a target of 19000 ha. During April to

October 2011, under boundary protection subsidy

scheme, an amount of ` 63.99 lakh has been paid

to 2238 beneficiaries.

The main theme for annual mass contact

programme of this year was “Adopting scientific

tapping for increased productivity” and meetings

were conducted at 2704 centres in which 84562

growers/tappers participated. Smt. Vijaylakshmi

Joshi, Additional Secretary (Plantations), Ministry

of Commerce and Industry inaugurated the State

level annual mass contact programme on 6 June

2011 at Kottayam. In the meeting, a book - Directory

of Service Providers in Natural Rubber Plantation

Table 9.7

Performance of RPD schemes in traditional & non-traditional areas other than NE region, from April-December 2011

Description of the Schemes Financial (` Lakh) Physical

Target Achievement Target Achievement

I. Rubber Plantation Devt. Scheme (NP & RP)

2265 1173.11 8350 ha. 4420.15 ha..

II. Productivity Enhancement scheme

a) Supply of inputs with price concession 270 260 20000 ha 19000 ha.

b) Setting up of Agro management units 660 246.27 5000 ha. 3680 ha.

c) Generation of quality planting materials (Nos.) 260 126.69 700000 1042000

III. Farmer Group Formation and Empowerment

a) Formation of New RPS/SHG 8.52 2.92 150 nos. 72 nos.

b) Farmer Education Programme/Field training 30.0 6.36 7597 nos. 1512 nos.

c) Support to RPS/SHG 102.25 13.48 1009 nos. 125 nos.

d) Group Processing Centres 46.50 18.61 1 4

e) Latex Collection Centre cum office 34.11 10.43 529 nos. 225 nos.

IV. Training Programmes

a) Short Duration Intensive Tappers’ Training 45.00 21.69 4875 2616 persons

b) Regular Tappers’ Training 40.00 23.16 1687 959 persons

c) Annual mass campaign- - 100000

84562 persons

Source: Rubber Board

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Annual Report 2011-12

Sector in India was released. A survey has been

conducted among the small growers during this

year for assessing production and stock of natural

rubber, details of mature area, etc.

Labour Welfare Schemes

Under the various labour welfare schemes, the

Board disbursed ` 167.37 lakh benefiting 12,991

rubber tappers and their families during April–

December 2011 against the target of ` 325 lakh for

2011–12.

Rubber Research

The Rubber Research Institute of India (RRII) has its

head quarters in Kottayam, Kerala. The Institute has

its largest experimental field station at Chethackal

in Pathanamthitta District, which is located in

the heart of the traditional rubber growing tracts

of Kerala. RRII and its Regional stations were

involved in active research programmes under

major schemes like Crop Improvement (Botany

& Germplasm), Advanced Centre for Molecular

Biology and Biotechnology (Biotechnology, Genome

Analysis, Molecular Plant Pathology and Molecular

Plant Physiology), Crop Management (Agronomy/

Soils & Fertilizer Advisory), Crop Protection (Plant

Pathology), Crop Physiology (Plant Physiology and

Latex Harvest Technology), Economic Research and

Advanced Centre for Rubber Technology (Rubber

Technology and Technical Consultancy).

The research activities of Regional Research

Stations Orissa, Maharashtra, Nagrakata and

Padiyoor (North Kerala), Hevea Breeding

Substations Nettana (Karnataka) and Paraliar

(Tamil Nadu) were co-ordinated under the scheme

Strengthening of Regional Research Stations and

the research schemes in North-East research

stations located in Tripura, Assam, and Meghalaya

were co-ordinated under “Research in North-East”.

The scheme on research support services includes

Library and Documentation Centre, Computer

centre, Instrumentation and Maintenance sections.

The brief highlights of achievements under various

R&D programmes are as follows:

Crop improvement

Forty Seven pipeline clones were planted •at different agro-climatic regions for G x E interaction studies.

Trials with the RRII 400 series in 5 locations •across the country showed RRII 430 and RRII 422 to be stable across locations under different environment. RRII 430 showed tolerance to drought.

Phase 3 of the participatory clone evaluation •was initiated by planting 12 clones including check clones in polybag nurseries in eight locations.

Source bush nursery of 11 ortets selected from •Andamans was established at CES, Chethackal.

A hybridization programme was undertaken •with the objective of introgression of desirable genes from the wild germplasm into the breeding pool to widen the genetic base.

Hybrid clones evolved using drought tolerant •parents, planted for field evaluation in the hot spot area for drought were assessed for initial growth and drought tolerance.

A study on clonal variability for wood quality •parameters of RRII 400 series clones was completed. RRII 430 and RRII 417 showed better wood density than RRII 105.

Studies on polyhouse ecosystem to improve the •quality of planting material were completed.

Evaluation trials for screening cold tolerance in •wild Hevea accessions are progressing at RRS, Nagrakata in West Bengal.

Lignin characterization of wild accessions and •popular rubber clones were carried out.

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CHAPTER-9 Commodity Boards and other Development Authorities

Advanced centre for Molecular Biol-

ogy and Biotechnology The MnSOD transgenic plants developed •earlier were bud grafted on to seedling stocks.

Many transgenic cell lines integrated with •MnSOD, isopentenyl transferase, Hydroxy – Methyl – Glutary – Reductase -1 (HMGR-1), osmotin genes were developed and are at different stages of plant regeneration.

In silico analysis of rubber Expressed Sequence •Tag (EST) database for Simple Sequence Repeats (SSR) identification and gene mining was performed.

EST derived 15 microsatellites/SSR markers •were used to characterize 40 cultivated Hevea brasiliensis clones. Genotype-specific profiles were identified.

From the available cDNA and genomic DNA •sequences a number of genes were retrieved from the National Centre for Biotechnology Information (NCBI) database to amplify them from the selected rubber clones using gene-specific primer pairs for identification of Single Nucleotide Polymorphism (SNPS).

A recombinant E.coli strain engineered to •express the Hev MT-3a gene was tested for its copper tolerance property.

Studies were made on Micro Ribo Nuclic Acid •(miRNA), stress genes expression and genes related to rubber biosynthesis.

In gene transformation studies related to gene •transfer in endophytes, protein extracted from the chitinase gene in transformed Bacillus cells was resolved.

Crop ManagementAnalysed soil samples from replanting fields •of estates in traditional rubber growing region and showed very low status of secondary and micronutrients.

Field experi• ments in immature rubber plantations were carried out to develop integrated nutrient management package.

Studied the suitability of intercropping with •perennial crops, timber trees and shade tolerant medicinal plants in mature rubber plantations.

In the experiments to reduce cost of cultivation •it was noticed that the minimum dimension of pits size did not influence the establishment and growth of rubber.

Different density planting, reduction in •gestation period, soil moisture conservation, integrated nutrient management, weed management studies and nutrient management of TPD experiments are in progress.

Analysed 4937 soil samples for offering •discriminatory fertilizer recommendation. Fertilizer recommendations were given to 2170 smallholdings. Besides, latex samples (57257) were tested for dry rubber content. Mobile soil testing programmes were arranged at 51 locations for giving on the spot fertilizer recommendation.

Crop ProtectionAs part of mechaniz• ation, a mist blower with higher capacity mounted on a mini tractor and on two wheeled trolley were field tested in rubber plantations and found suitable for the management of Abnormal Leaf Fall (ALF) diseases.

Pathogenicity studies were carried out with •perithecia and conidia derived Colletotrichum gloeosporioides under in vivo condition. Both were found to be virulent.

The chitinase protein isolated from •Gondang Tapen – 1 (GT1) was purified and polyclonal antibody was raised for further characterization.

Compilation of meteorological data• from all research station was completed.

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Annual Report 2011-12

Crop PhysiologyThe PS II quantum yield and leaf water •potential showed a significant reduction in low temperature treated plants.

Drought survey in young rubber plantation, •experiments on tapping induced biomass loss, stimulations and abiotic stress, biochemical mechanism on yield and nutritional aspects of abiotic stress are being continued.

Development of mechanized tapping tool is •progressing with modifications.

The biodegradable polythene developed for •rain guarding was successfully used for a period of five months.

Phase I & II of popularizing low frequency •tapping (d3 frequency) is in progress.

Advanced Centre for Rubber TechnologyThe Rubber Technology division, standardised •a quick method for DRC determination of NR latex by partial drying of the coagulum in a microwave oven.

In the studies on reinforcement of NR with •polymeric filler systems, it was found that addition of BR to NR/PFI system significantly reduced abrasion loss by keeping all other technological properties.

It was observed that rubber nanocomposites •based on blends of Radiation Vulcanization Natural Rubber Latex (RVNRL) and carboxylated nitrile rubber latex had improved fuel resistance and mechanical properties compared with pure RVNRL.

In the Technical Consultancy division, technical •know-how transferred to 17 clients as per request.

Products/samples were received from 385 •firms and tested 3327 parameters

Queries on technical matters from 606 units •were addressed during the reporting period.

Processed about 20.05 MT of speciality grades •of Indian Standard Natural Rubber (ISNR) from the Pilot Crumb Rubber Factory (PCRF)/ Radiation Vulcanization Natural Rubber Latex (RVNRL) Unit.

Economic ResearchThe real tapping wage share declined from •24.18 per cent during the pre-reforms phase to 18.11 per cent during the post-reforms phase.

Decontrol over production and distribution of •planting materials resulted in virtual absence of any quality control mechanism and vital loss of reliable database on rubber nurseries and the extent of adoption of prescribed cultural practices.

Regional Research Stations

Polyclonal ortet selection and the field •evaluation trials are progressing at Rubber Research Station (RRS), Dapchari, Dhenkanal and Padiyoor.

Yield evaluation trials on various Hevea clones •including the modern clones have been continued at Hebvea Breeding Sub Station (HBSS), Paraliar and Nettana.

A training programme was conducted at HBSS, •Paraliar to popularize the root trainer planting technology among the rubber estates in private sector.

Research Stations in NE

Yield evaluation trials in modern Hevea clones, •disease incidence in different rubber clones, cross breeding experiments with potential parent clones, CUT experiments for enhancing yield in old plantations, fertilizer trials, onfarm trials on selected ortets, screening of wild germplasm accessions for disease tolerance were the major work carried out in the NE Research stations at Agartala, Tura and Guwahati.

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CHAPTER-9 Commodity Boards and other Development Authorities

A field trial was started in a tea redundant •area with a soil pH of 6.8 – 7.0 in the Regional Experimental Station (RES), Nagrakata for evaluating the growth performance of rubber.

Major Events

To mark the Centenary Year of the first report of

Phytophthora leaf disease in rubber plantations

in India and the Golden Jubilee Year of the

recommendation of spraying of oil-based copper

oxychloride against abnormal leaf fall disease

in rubber plantations, RRII organized a three-

day international workshop and a three-day

seminar on the theme “Phytophthora diseases

of plantation crops and their management”. The

event, christened Phytophthora 2011 was held

during 12-17 September, 2011 at RRII, Kottayam,

Kerala. An exhibition of plant protection chemicals,

bio-control agents and machineries was also

arranged together with the seminar. The scientific

programme consisted of expert talks and interaction

among scientists, planters and manufacturers of

plant protection chemicals and machineries in

the context of widespread concerns about use of

agricultural chemicals. The seminar was inaugurated

by Shri. Thiruvanchoor Radhakrishnan, Hon’ble

Minister for Revenue, Government of Kerala and

the Workshop was inaugurated by Dr. Y.R. Sarma,

Former Director, Indian Institute of Spices Research,

Calicut. Delegates from India and abroad (from

Australia, Thailand, Cambodia and Sri Lanka) were

present. On the last day of the seminar, a growers

meet was arranged with thirteen presentation on

innovations and experiences in plant protection

by growers active in spices and plantation crops

cultivation.

Processing & Product Development

Various activities were undertaken to support

the rubber and rubberwood processing industry

to attain international competitiveness. Special

attention was given to the small holding sector

to strengthen their infrastructure for processing

and marketing including export. Major activities

undertaken include:

Quality up-gradation, cost reduction and •strengthening environmental protection systems in block rubber and latex concentrate factories.

Quality certification of NR produced in India, •imported to and exported from the country and Implementation of BIS Scheme for Testing and Inspection

Standardization activities related to rubber and •rubber products

Providing testing facilities to stakeholders •

Technical support to Rubber Producer •Societies (RPS)/Co-operatives in processing and marketing of Natural Rubber (NR).

Providing training, technical support and R&D •activities in Natural Rubber processing.

Testing of rubber wood and R&D activities in •rubber wood processing.

Technical and financial support to rubber wood •processing factories

Engineering Division

During April – December, 2011, an amount of

`23.18 lakh was disbursed to 7 rubber-processing

units under the quality upgradation scheme,

`9.91 lakh was released under Quality Control and

`16.76 lakh under Demonstration/Training. Under

the scheme for Rubberwood, `135.18 lakh was

released to two companies.

Rubber Processing & Market Development Division

During April – December, 2011, an amount of `

291 lakh was released to fourteen (14) RPS trading

companies towards working capital loan, ` 40.85

lakh to ten (10) RPS trading companies towards

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Annual Report 2011-12

5% interest subsidy, ` 77.50 lakh to eight (8) RPS

trading companies for marketing of estate inputs,

` 56.13 lakh to four (4) RPS trading companies

towards grant-lieu of share capital, ` 5 lakh to one

RPS trading company towards grant for acquiring

land / building / construction of building. An

amount of ` 12.79 lakh was released towards 5%

interest subsidy for eight Co-operative societies,

` 15.00 lakh was paid to two Co-operative

societies towards working capital loan and grant-

lieu of share capital. Besides, ` 37.00 lakh was

spent towards construction of godown facility.

Ten export / import inspections for sheet rubber

were undertaken involving a total quantity of 815

MT, 25 field visits were conducted under quality

improvement programme of sheet rubber and

two meetings were attended with National Multi

Commodity Exchange Ltd (NMCE).

Processing & Quality Control Division

During April – December, 2011, a total of 14880

samples of latex, dry rubber, water, effluent and

chemicals were tested and collected ` 9.11 lakh

as revenue. In addition, 452 samples of dry rubber

and latex were tested as part of quality control

of which 87 samples were for export. Further,

164 Quality control inspections and 134 - BIS

inspections were conducted during this period.

139134 MT of NR was imported and 23000 MT of

dry rubber was exported from the country during

April – December, 2011.

Factory Management Division

During April – December, 2011, Factory

Management Division produced 715.05 MT of

block rubber and 40.725 MT of centrifuged latex.

Sales turn over for the Model TSR factory was `

16.45 crore against sale of 762.525 MT of block

rubber. The latex sales turn over was ` 77.16 lakh

from the Pilot Latex Processing Centre.

Training

The Rubber Training Institute (RTI) catered to the

training needs of the various target Groups in the

major rubber sectors like Rubber Plantation, Rubber

Processing and Rubber Product Manufacturing.

Annual Training Calendar was prepared and

training programmes were conducted every year

as per schedule. Besides, scheduled programmes,

need based and collaborative focused programmes

were also organized. Indoor classroom training was

imparted on various aspects of rubber cultivation,

processing and product manufacture. Training for

Director Board Members of the RPS on leadership

and business management was one of the important

activities undertaken. Six batches were conducted

covering 88 trainees under the programme during

the current year. A training programme named

Sastradarsan is being conducted regularly to

provide an opportunity for rubber growers and

other interested groups in rubber production and

processing, including students to visit the Rubber

Training Institute and Rubber Research Institute of

India and become aware of scientific advancements

in rubber cultivation and rubber technology.

Outstation training programmes are conducted in

different localities for the benefit of those who are

not able to attend the programmes in the Institute.

Training is also given for the staff of Rubber Board

on induction and for refreshing their knowledge

and skill. The Institute imparted training to 3103

trainees during the period from April to December

2011.

IV. Spices

Spices Board was constituted as a statutory body

on 26th February, 1987 under Section (3) of the

Spices Board Act, 1986. The Board is headed by

a Chairman with its head office at Kochi. Spices

Board is responsible for the development of

cardamom industry and export promotion of 52

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CHAPTER-9 Commodity Boards and other Development Authorities

spices listed in the schedule of the Spices Board

Act, 1986. The primary function of the Board

includes production development of small and

large cardamom, promotion, development and

regulation of export of spices. The Board is also

responsible for implementing programmes for

development of spices in North Eastern region and

organic spices in the country. The activities of the

Board include issue of certificate of registration

as exporter of spices; undertaking programmes

and projects for promotion of export of spices like

setting up of spices parks, support of infrastructure

improvement in spices processing, assisting and

encouraging studies and research on medicinal

properties of spices, development of new products,

improvement of processing, grading and packaging

of spices; striving towards stabilization of prices

of spices for export and controlling & upgrading

quality for export (including setting up of regional

quality evaluation labs and training centers). With

regard to cardamom, registered auctioneers and

dealers facilitate the domestic marketing through

e-auctions. The Spices Board also does the research

activities on cardamom.

Chart 9.4

India Spice Exports through 2005-06 to 2010-11 (in US$ Million)

Export

Despite the global economic recession, export

of spices from India has shown a steady upward

trend during the last few years and this trend

continued in 2010-11 also. The export has gone

up from 350,363 tons valued at ` 2,627.62 crores

(US$ 592.90 million) in 2005-06 to 525,750 tons

valued ` 6840.70 crores (US$ 1502.85 million) in

2010-11, registering a compounded annual growth

rate of 20.44% in dollar terms of value and 8.46%

in volume. During 2011-12 (April – December), the

export of spices estimated at 396,665 tons valued

at ` 7094.68 crores (US$ 1500.40 million) against

188

Annual Report 2011-12

402,025 tons valued ̀ 4838.44 crores (US$ 1065.14

million) during the same period of last year.

Import

The import of spices largely takes place for value

addition and re-export except items such as clove,

cassia, star anise, poppy seed, fresh ginger etc.

which are mainly used for domestic demand. The

Import of spices during 2010-11 was 86,775 tons

valued ` 1175.50 crores (US$ 257.00 million).

During 2011-12 (April-November) the estimated

import of spices into India is 62,880 tons valued `

1094.56 crores (US$ 239.44 million) against 55,820

tons valued ` 719.41 crores (US$ 157.40 million).

Production

The estimated production of cardamom (small)

and cardamom (large) in India during 2011-12 up

to February, 2012 is 12,975 tons and 3,855 tons

respectively.

XI Plan Schemes

Government had approved six schemes for

implementation during the Eleventh Five Year Plan.

The details of the schemes are given below:

1. Export oriented production and post harvest improvement of spices

2. Special purpose fund for replanting and rejuvenation of cardamom plantations

3. Development & promotion of Export of spices

4. Export oriented research

5. Quality improvement and strengthening of quality evaluation laboratory

6. Human resource development & capital works

In addition to the above, during October 2009,

Government has approved a special scheme for

replantation and rejuvenation of pepper in the

Wynad district of Kerala and in the NE States,

Assam, Tripura, Meghalaya and Manipur in order

to address the issue of low productivity of pepper.

The details of actual expenditure during 2010-11

and outlay approved for the Annual Plan 2011-12

are given in Table 9.8.

Table 9.8XI Plan Outlay, Expenditure during 2011-10 and approved outlay for 2011-12

(` Crores)

Sl. No

Schemes XI Plan Outlay Expenditure

2010-11

Approved

Outlay 2011-12

Expenditure as on Feb,

2012

1 Export oriented production and post harvest improvement

82.94 22.82 25.00 19.74

2Replantation and rejuvenation of Cardamom/Pepper plantations

122.23 17.73 (*) 15.00 10.52

3 Export development and promotion

192.69 35.05 44.00 48.80

4 Export oriented research 20.00 5.60 6.00 5.18

5 Quality improvement 20.00 3.77 4.00 4.18

6 HRD & works 5.00 0.43 1.00 0.45

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CHAPTER-9 Commodity Boards and other Development Authorities

Programmes supported under Plan

schemes

i) Special purpose fund for replanting and rejuvenation of cardamom (small and large) plantations

The objective of the scheme is to address the

issue of replanting/rejuvenation of the old and

uneconomic plantations of cardamom (small) in

the States of Kerala, Karnataka, Tamil Nadu and

cardamom (large) in Sikkim and Darjeeling district

of West Bengal. The approved total outlay under

the programmes for replanting and rejuvenation

of plantations of cardamom (small) and cardamom

(large) is ` 122.23 crores. The total area proposed

to be covered under replanting and rejuvenation of

cardamom plantations during XI Plan is as follows:

Small cardamom – Replantation of 10,000 •hectares in Kerala & Tamil Nadu and 15000 hectares in Karnataka. Rejuvenation of 15,000 hectares in Kerala and Tamil Nadu.

Large cardamom – Replantation and •rejuvenation of 10,000 hectares each in Sikkim and Darjeeling district of West Bengal.

ii) Export oriented production and post harvest improvement of spices

The focus of the scheme is to provide support for

irrigation and land development in cardamom

plantations, better cardamom curing devices,

promoting organic farming, development of

spices in North Eastern States and post harvest

improvement of spices. Transfer of technical know-

how to growers on production of spices is an

important factor in increasing productivity and this

is done through a well-knit extension network.

iii) Export development & promotion of spices

The market development activities of the Board have

its focus on quality improvement, value addition

and technology and process upgradation. The

major thrust areas are infrastructure improvement,

research and new product development and setting

up of Infrastructure for common cleaning, grading,

processing, packing, storing facilities (Spices Park)

in major spice growing/marketing centers.

iv) Export oriented research

Increasing the production, productivity and

sustaining the productivity is the major challenge

taken up by Indian Cardamom Research Institute of

the Board during the plan programme. The impact

of climatic changes on production and increasing

cost of production are the major concerns to be

addressed to make Indian spices more competitive

in the International market.

v) Quality improvement and strengthening of quality evaluation laboratory

The Quality Evaluation Laboratory of the Board

provides analytical services to the Indian Spice

Industry and monitors the quality of Spices

7 Replantation and rejuvenation of Pepper plantations in Waynad district of Kerala and North Eastern states (Scheme approved in Oct 2009 for implementation during the next five years with an outlay of Rs.53.28 crores)

53.28(**) 5.00 5.02

Grand Total 496.14 85.40 100.00 93.89

Note: (*) Including expenditure under Replantation of Pepper in Waynad an NE (**) Scheme is to be implemented during the XI and XII plan.

190

Annual Report 2011-12

produced and processed in the country. It also

undertakes analysis of consignment samples under

the mandatory inspection of Spices Board.

vi) Human resource development & capital works

Regular training and retraining of the staff of

the Board in their functional areas, training

on cultivation aspects, post harvest handling,

processing etc., to growers and exporters in

the spice industry are programmes under the

scheme. Capital works including new construction,

maintenance of Board’s own building etc. are also

envisaged under the programme.

vii) Replantation and rejuvenation of pepper in Wynad district in Kerala and NE for implementation from 2010-11

This scheme is approved by the Ministry of

Commerce & Industry in October 2009 for

implementation during the next five years in

Wynad District of Kerala and North Eastern

States. It is proposed to take up replantation/new

plantation/rejuvenation of pepper in 22,500 ha

(20,000 ha in Waynad, Kerala, 1,000 ha in Assam,

500 ha in Meghalaya, 500 ha in Tripura and 500 ha

in Manipur) with a total financial outlay of ̀ 100.81

crores out of which ` 53.28 crores will be the

assistance from the Government of India. During

2010-11, against a budget allocation of ` 5 crores,

Spices Board has made expenditure of ̀ 4.74 crore.

In 2011-12, against financial target of ` 5 crores,

Board has utilized ` 4.99 crores upto 31.1.2012

viii) Project assisted under National Horticulture Mission for development of pepper in Idukki district of Kerala

Considering the necessity of reviving the pepper

industry in the country, Spices Board had submitted

a proposal to the National Horticulture Mission

(NHM) during February 2009 for development of

pepper in the country with focus on replantation

and rejuvenation of old, senile and disease affected

plantations. The proposal has been approved by the

Ministry of Agriculture & Cooperation, Government

of India in April 2009 for implementation during XI

Plan at a total project cost of ` 230.58 crores with

financial assistance from NHM at ` 120.00 crores.

The project is being implemented in Idukki district

of Kerala for a period of five years starting from

2009-10. Spices Board has utilized ` 16.38 crores in

Idukki districts from 2009-10 to 2010-11 for Pepper

development. The programme is well accepted by

the farmers. 4710.8 hectare has been replanted/

rejuvenated during 2010-11. Upto February, 2012,

5123 hectare area has been covered under the

programme.

Major initiatives

Spices Park

The primary objective of establishing Spices Park is

to empower the farmers with better price realization

and wider markets for their produce. The farmers

can utilize the common infrastructure facilities for

cleaning, grading and steam sterilization which will

ensure the quality of the product and thus a higher

price. The scientific packing and warehousing

facilities in the park and the quality testing facility

in the laboratory will improve the overall quality of

spices produced in the locality. Spices Park is a well-

conceived approach to have an integrated operation

for cultivation, post harvesting, processing for

value-addition, packaging and storage of spices

and spice products.

The Spices Board is in the process of establishing

Spices Parks in different spice producing states.

The first ever Spices Park was established in

Chhindwara, Madhya Pradesh under ASIDE scheme

and started functioning in 2009. The Spices Park

at Puttadi, Idukki district of Kerala has also been

completed and started functioning in 2011. The

work is in progress for establishing Spices Park

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CHAPTER-9 Commodity Boards and other Development Authorities

at Guntur in Andhra Pradesh, Sivaganga in Tamil

Nadu, Kota and Jodhpur in Rajasthan, Mehsana

in Gujarat and Guna in Madhya Pradesh. Board

has initiated steps for establishing Spices Park at

Hamirpur in Himachal Pradesh. The Spices Parks at

Guna, Kota and Hamirpur are being set up under

the ASIDE scheme.

Regional Quality Evaluation Laboratories

The Central Quality Evaluation Laboratory of the

Board at Cochin has been upgraded and moved

to a new building with world class facilities. The

Regional quality evaluation laboratories at Mumbai,

Guntur and Chennai are functioning successfully.

Setting up Regional quality evaluation laboratory

and training centres at New Delhi, Kolkatta,

Tuticorin and Kandla are progressing. The regional

quality evaluation laboratories of the Board are

established under the ASIDE scheme.

Electronic Auction for Cardamom

The E-auction of cardamom in Kerala is now

conducted in the Spices Park at Puttadi of Idukki

district. The E-auction is also conducted in

Bodinayakanur of Tamil Nadu.

GI Registration of Spices

Spices Board has obtained Geographical Indication

(GI) registration for Byadagi chilli. This is in addition

to the GI registration obtained for Malabar

Pepper, Alleppey Green Cardamom, Coorg Green

Cardamom and Guntur Sannam chilli.

V. Price Stabilisation Fund Scheme

Price Stabilisation Fund Scheme was launched

by Government of India in April 2003 against the

backdrop of decline in international and domestic

prices of tea, coffee, rubber and tobacco causing

distress to primary growers. The growers of these

commodities were particularly affected due to

substantial reduction in unit value realization for

these crops, at times falling below their cost of

production.

The objective of the Scheme is to safeguard the

interests of the growers of these commodities and

provide financial relief when prices fall below a

specified level.

Enrolment of Growers

Out of the total target of 12.77 lakh growers

(growers having landholding up to 4 ha.), it was

decided to cover 3.42 lakh small growers in the

initial phase. As on 30 November 2011, the total

enrolment under the Scheme is 46,243, out of

which 18,919 are rubber growers, 11,594 coffee

growers and 15,730 tea growers. No tobacco

grower has joined the Scheme so far.

PSF Corpus Fund and Interest Accrued thereon as on 30.11.2011

PSF Scheme originally envisaged a Corpus Fund of

` 500 crores, out of which ` 482.88 crore was to be

contributed by Government of India and ` 17.12

crore by the growers by way of non-refundable

entry fee. As on 30 November 2011, deposits in

the PSF Corpus Fund were ` 435.44 crore, out of

which ` 432.88 crore had been contributed by GOI

and ` 2.59 crore by Growers by way of entry fee.

A sum of ` 294.47 crore as the balance of accrued

interest on the Corpus is available to the PSF Trust

as on 31.3.2011.

Announcement of Price Spectrum Bands

Since the launch of the Scheme in April 2003, the

PSF Trust has announced Price Spectrum Bands for

2003, 2004, 2005, 2006, 2007,2008,2009 and 2010

and the cumulative committed financial assistance

stood at ` 5.43 crore.

192

Annual Report 2011-12

However, due to default by growers in depositing

their contribution during normal years, assistance

of ` 1.50 crore only has been released to tea,

coffee and Rubber growers as at the end of 30th

November 2011.

Personal Accident Insurance Scheme

A Personal Accident Insurance Scheme having a

cover of ` 25,000 was started for the growers of

Tea, Coffee, Rubber and Tobacco from 1.1.2005.

The Personal Accident Insurance Scheme was

reviewed by the Government and a modified

Personal Accident Insurance Scheme is under

implementation by PSFT through Cholamandalam

MS General Insurance Co Ltd. (for the period 2011-

12 and 2012-13). Salient features of the scheme

are as under:

The scheme covers the growers in the sectors •of Tea, Coffee, Rubber and Tobacco and Spices (chillies, cardamom, ginger, turmeric and pepper) having plantations up to 4 hectares only.

The Scheme covers all plantation workers •working on these plantations regardless of the size of holdings.

The insurance cover is up to • ` 1.00 lakh per person.

The premium of • ` 22.06 is shared between

Table 9.9

Year wise Price Spectrum Band and Cumulative committed Financial Assistance

(` in crore)

Commodity PSB 2003

PSB 2004

PSB 2005

PSB 2006

PSB 2007

PSB 2008*

PSB 2009

PSB

2010*

Total

Rubber 0 0 0 0 0 0 0.95 0 0.95

Coffee 0.82 0.58 0 0 0 0 0 0 1.40

Tea 0.09 0.73 0.74 0.75 0.77 0 0 0 3.08

Total 0.91 1.31 0.74 0.75 0.77 0 0.95 0 5.43

*boom year for all crops

the beneficiary and the PSF Trust in the ratio 50:50.

The target is • ` 57.17 lakh growers and workers.

A total of 1,35,355 growers and workers were

covered under Personal Accident Insurance

Scheme (PAIS) by National Insurance Company

Limited during 2010-11.

As on 15th December, 2011, a total amount

of ` 528086 has been released towards Price

Stabilisation Fund Trust’s (PSFT) matching

contribution to provide insurance cover to 47877

persons to Chola MS General Insurance Co Ltd.

Sector wise progress in respect of coverage for

2011-12 (upto 15 December 2011) is given in Table

9.10.

Table 9.10

Sector - wise progress under Personal Accident Insurance Scheme

Sector Growers Workers Total

Tea 0 16626 16626

Coffee 3777 305 4082

Rubber 0 0 0

Tobacco 11653 13984 25637

Spices 353 1179 1532

Total 15783 32094 47877

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CHAPTER-9 Commodity Boards and other Development Authorities

An amount of ` 23,23,717.50 has been released

towards premium under PAI Scheme, since

inception up to 31.03.2011

Progress in respect of settlement of claim

Received : 04 •

Settled : 04 (Tobacco workers) - • ` 1,00,000 each

VI. The Agricultural and Processed Food Products Export Development Authority (APEDA)

The Agricultural and Processed Food Products

Export Development Authority (APEDA) is

mandated with the development and promotion

of the export of scheduled agro products which

include Fruits, Vegetables and their Products; Meat

and Meat Products; Poultry and Poultry Products;

Dairy Products; Confectionery, Biscuits and Bakery

products; Honey, Jaggery and Sugar Products;

Cocoa and its products, Chocolates of all kinds;

Alcoholic and Non-Alcoholic Beverages; Cereal

and cereal products; Groundnuts, Peanuts and

Walnuts; Pickles, Papads and Chutneys; Guar Gum;

Floriculture and Floriculture Products; Herbal and

Medicinal Plants. APEDA has also been entrusted

with monitoring of import of sugar.

The Commerce Secretary, Dr. Rahul Khullar addressing at the International Chef Conference “Basmati for the World 2011”, in New Delhi on November 22, 2011

Export Performance: The export of APEDA products

for the period April-November’11 is given at Table

9.11.

194

Annual Report 2011-12

Except for negative growth in Fruits and Vegetable

sector, the provisional export data for the period

April-November, 2011 shows an overall positive

growth of 71.92 over the same period of previous

year.

APEDA Schemes

APEDA has been actively engaged in the

development of markets besides upgradation of

infrastructure and quality to promote the export of

agro products. In its endeavour to promote agro

exports, APEDA provides financial assistance to the

registered exporters under the following schemes:

Scheme for Market Development•

Scheme for Infrastructure Development•

Scheme for Quality Development•

Scheme for Research & Development•

Transport Assistance Scheme•

Infrastructure Developmental Activities

New Projects sanctioned during the year 2011-12

Table 9.11

Export Performance- APEDA products (April - November, 2011)

Value in ` Crores Product Group Export

April-Nov.’10

Export

April-Nov.’11

Growth in %

Floriculture & Seeds 309.39 380.38 22.95

Fruits & Vegetables 3182.62 3077.97 -3.29

Processed Fruits & Vegetable 1739.65 2376.48 36.61

Livestock Products 5997.64 8545.07 42.47

Other Processed Foods 4701.63 12223.20 159.98

Non-Basmati Rice 169.48 2801.53 1553.01

Basmati Rice 6512.48 8723.21 33.95

Wheat 0.56 428.48 76414.29

Other Cereals 1490.33 2881.96 93.38

Total 24103.78 41438.28 71.92

Source: DGCIS - November 2011 for principal commodities (Provisional)

(i) Installation of Tetra Pack Machine (TBA -19) at Parwanoo, Solan, Himachal Pradesh by HPMC.

The proposal of HPMC for installation of TBA-19

Tetrapak machine and TSA 30 straw applicator

at Parwanoo, H.P. District Solan for packaging of

fruit juices/drinks in 200 ML slim Tetra Packs was

approved by APEDA in its Authority meeting held

on 24.06.2011 for grant of ` 355.15 lakhs.

The proposed installation of TBA-19 machine will

improve the capacity of 200 ml Slim Tetrapack by

30% from 6000 per hour to 7800 per hour.

An MoU between APEDA and HPMC was signed

on 03.10.2011. First instalment of 40% advance

of ` 142.06 lakhs was released to HPMC on

12.10.2011. The machines are likely to be installed

by March 2012.

(ii) Setting up of cold storage at Spices park, Guna, Madhya Pradesh by Spices Board

The proposal of Spices Board for setting up of cold

storage at Spices Park, Guna, Madhya Pradesh

was sanctioned for a grant of ` 612 crores by the

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CHAPTER-9 Commodity Boards and other Development Authorities

Authority in its meeting held on 24.06.2011. The

total cost of the project is ` 40.25 crore wherein

the contribution from ASIDE is to the tune of `

19.00 crores, remaining will be funded by Spices

Board and Government of Madhya Pradesh. The

project will be completed in two financial years,

2011-12 & 2012-13. The implementation is under

progress.

Two cold storages are to be funded by APEDA. The

cold storage facility proposed for is of 6 modules

with each module of 500 MT capacity, totaling to

3000 MT.

The process of signing of MoU with Spices Board

is under progress and is likely to be signed soon.

Thereafter the first instalment of ` 305.88 lakhs

will be released to Spices Board.

Running Projects

Currently there are nine common infrastructure

projects being implemented in Himachal Pradesh

by HPMC with an assistance of ` 25.15 crores by

APEDA. The year-wise details are as at Table 9.12:

The projects at Gumma and Jarol Tikker have been

completed and trials are being conducted. The

machinery is being installed at Oddi and Patlikuhl

Table 9.12

Infrastructure project at Himachal Pradesh

S.No. Year Project Location Product

1 2009-10 Pack House Kinnaur apples

2 2009-10 Pack House Jarol Ticker apples

3 2009-10 Pack House Gumma apples

4 2009-10 Pack House Nadaun Vegetables

5 2009-10 Pack House Patlikuhl apples

6 2009-10 Pack House Oddi, apples

7 2010-11 CA Store Gumma Apples

8 2010-11 CA Store Jarol Ticker Apples

9 2011-12 Installation of Tetrapak machine

Parwanoo Juices

projects and they will be commissioned within 3

months. For Kinnaur and Nadaun projects, the

land has been identified and land bearing capacity

is being tested. Tenders have been floated for

Controlled Atmosphere (CA) stores at Gumma and

Jarol Tikker. The Tetrapak machine is likely to be

installed by March 2011 at Parwanu.

APEDA is funding Punjab Agri Export Corporation

(PAGREXCO) for setting up of pack houses at five

locations in Punjab namely, Mushkabad, Saholi,

Lalgarh, Kangmai and Sohal (babri) with a financial

assistance of ` 535.00 lakhs. Pack houses at four

locations namely Mushkabad, Saholi, Lalgarh and

Kangmai are nearing completion. The capacity of

mechanical handling viz. washing, drying, grading,

etc is 1.5 MT/hour and the total installed capacity

is 3600 MT for each pack house.

With an assistance of ` 440.00 lakhs from APEDA,

an Aseptic packaging has been set up by Andhra

Pradesh Trade Promotion Corporation (APTPC) with

a capacity of 6 MT per hour. The facility has been

completed in August 2011 and is in operation.

Three small pack houses are being set up by

Department of Horticulture, Government of

Andhra Pradesh at Vishakhapatnam, Rangareddy

196

Annual Report 2011-12

and Medak District with an assistance of ` 25.00

lakhs each from APEDA. The installation work

has been completed at Rengareddy and Medak

District.

APEDA is assisting Gujarat Agro Industries

Corporation Ltd to set up an M.A. cold store for

onions in Mahuva, Gujarat with a grant of ` 500.00

lakhs. The basic civil work & structural work is

completed. Grading work for three cold stores

completed and refrigeration panel work is going

on. The facility is expected to be completed by

end of financial year 2011-12.

For increasing export of banana from

the state of Gujarat, APEDA is funding three

projects with a total assistance of ` 18.72 crores

implemented by Gujarat State Agriculture

Marketing Board at Rajpipla, Kamrej and Pavi

Jetpur. The work is progressing at Rajpipla and

Kamrej which are expected to be completed by

end of financial year 2011-12.

With the financial assistance of APEDA to

the tune of ` 145.14 lakhs, Kerala State Industrial

Enterprises ltd. is setting up cold storage facility at

Calicut Air Cargo Complex. The project is expected

to be completed by end of financial year 2011-12.

Three MoUs have been signed on

20/12/2011 between APEDA and Agricultural

marketing and Agri Business, Tamil Nadu for

setting up of pack houses for fruits and vegetables

at Dindigul, Tindivanam and Coimbatore with an

assistance of ` 75.00 lakhs from APEDA.

Quality Developmental Activities

1) Recognition of laboratories and HACCP implementation and certification agencies

Five new laboratories were recognized totaling

23 laboratories for sampling and analysis of

APEDA scheduled products for exports. Two

National Referral Laboratories and 10 recognized

laboratories were upgraded with high precision

analysis equipments. One new agency totaling 5

agencies for certification of HACCP was recognized

by APEDA during the period.

2) Substantial revisions were carried out for implementation of following Regulations of exports through control of agrochemical residues and aflatoxins

a) Regulation of export of fresh table grapes to the European Union through control of residues of chemicals to ensure food safety compliances for the export season 2011.

b) Regulation on control of aflatoxins for exports of peanuts and peanut products from India to ensure food safety compliances of the importing countries.

3) Following Procedure were revised for implementation through Indian Oilseeds & Produce Export Promotion Council (IOPEPC) for recognition of groundnut processing units

a) Procedure for grant of recognition certificate to peanut processing units for export of peanuts to the European Union.

b) Procedure for grant of recognition certificate to peanut shelling and/or grading units for export of peanuts to the European Union.

c) Procedure for grant of recognition certificate to godowns/storage for export of peanuts to the EU.

d) Procedure for grant of recognition certificate to peanut processing, shelling grading units, storage and godowns for export of peanuts and peanut products to countries other than EU.

4) Standardization

a) Seven new product standards totalling 49 standards for fresh fruits and vegetables

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CHAPTER-9 Commodity Boards and other Development Authorities

were developed for notification under Agmark Act. Another 10 to 12 standards are being developed and are at the stage of discussions with the stakeholders.

b) Contributed to National Technical Working Groups on Good Agricultural Practices (GAP) related to development and notification of IndiaGAP standards by Bureau of Indian Standards and Quality Council of India.

5) Capacity Building and trainings

a) Organized training program to the laboratory personnel on methods of sampling and analysis by EC in NRC Grapes Pune (NRL for horticulture produce) to align methods of sampling and analysis followed by Indian laboratories at par with the standards followed by the laboratories of EU countries.

b) Eight APEDA officials participated in EU rapid alert system training organized by

Box 9.2

Participation In International & National Events

International Events

India Show, Addis Ababa, Ethiopia from 20th to 22nd May, 2011•

Mango Promotion Campaign 2011, Dubai, UAE from 29th June to 3rd July•

Summer Fancy Food Show, Washington DC, USA from 10th to 12th July, 2011 •

Malaysia International Food and Beverages Trade Fair, Kuala Lumpur, Malaysia from 13th to 15th July•

Profood/Propack International Exhibition, Colombo from 26th to 28th August•

World Food Moscow 2011, Moscow, Russia from 13th to 16th September, 2011•

INDEXPO 2011, Muscat from 20th to 22nd September, 2011•

Biofach America 2011, Baltimore, USA from 22nd to 24th September, 2011•

Anuga, Cologne, Germany from 8th to 12th October, 2011 •

India Show Toronto, Canada 17-20 October, 2011 •

National Event

AAHAR – International Food Fair, Chennai from 25th to 27th August, 2011•

EC in Delhi, Mumbai and Cochin during the year. APEDA Mumbai office also coordinated Mumbai training program alongwith their participation.

Major Achievement

The Director of APEDA, Mr. Sanjay Dave was elected

as the Chairman of Codex Alimentarius Commission

(CAC), an UN body for food safety standards. It is for

the first time in the history of CAC, that an Indian

official has been elected at such a coveted post.

Developmental Activities in Organic

Promotion

Report on Implementation of National Programme of Organic Production (NPOP) for The Year 2011-12

Since the implementation of the National

Programme of Organic Production (NPOP) in 2001

by the Ministry of Commerce and Industry, there has

198

Annual Report 2011-12

been steady growth in export of organic products

from India. The growth has been independent of

market development efforts both for exports as well

as for the domestic market. In the last five years,

organic agriculture has developed rapidly in India

and has become an attractive opportunity to most

developed countries to source organic products.

The Indian industry has sustained an annual growth

rate of 20 % in production and at the same time has

offered a considerable price premium (20-25%) to

producers of organic products.

Area under organic certification

The total area registered under organic certification

is 4.75 million HA Introduction of the Grower group

certification at the national level has helped the

small & marginal farmers with small land holdings

to collectively access the organic market. Presently,

more than five lakh farmers are able to market

their certified products.

Production

India produced certified organic products around

2688109.83 MT till December 2011. The production

is not limited to only the edible sector but also to

fibers, cotton, cosmetics, body care products etc.

Major products exported

The total volume of organic products export till

December 2011 was around 76202.68 MT. The

export destination were to European Union,

Canada US ,Africa, Australia ,Asia and rest to other

countries realizing value of ` 552.55 Crores.

Major Initiatives of APEDA during the year – Amendments in NPOP for increasing the scope of certification of organic products

Realizing the potential of animal, aquaculture

& textile products in India, APEDA initiated the

standards setting process in these specific areas to

expand the export basket of organic products. This

will ensure India to cater to the demand of these

potential organic products in all major importing

countries. These standards are expected to be

approved by June, 2012.

Promotion of organic products

For creating a brand image of Indian Organic

products in the global market, promotion of the

trade mark “India Organic” logo was carried out in

the international organic fairs Biofach in US, Japan

and Germany

Implementation of the Web based traceability for organic products

A user friendly web - based traceability system called

“TRACENET” has been developed by APEDA for

enhancing the credibility of certification of organic

products under NPOP. This system helps APEDA in

maintaining authentic and related data of all the

organic stakeholders ie. operators (producers,

processors, traders exporters) and certification

bodies. Tracenet is under implementation since

June 2010.

Accreditation of certification bodies

Two new domestic agencies namely Biocert India

Pvt Ltd, Indore and Madhya Pradesh State organic

certification Agency, Bhopal have been accredited

by the National Accreditation Body under NPOP

making the total number of CBs under NPOP to

22.

India to be the “country of the year” at Bio Fach, Germany - February, 2012

Considering the potential and significant

development of Indian organic products, Nurnberg

Messe, the organizer of Bio Fach has selected

India to be the “Country of the Year” at Bio Fach

exhibition. The event has been successfully held

during 12th February to 18th February, 2012.

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CHAPTER-9 Commodity Boards and other Development Authorities

Developmental activities in North East Region

EDF–NER: Though no formal EC-EDF meeting was

held during the year , but a meeting was chaired by

Additional Secretary, DoC with officials of APEDA

and the NER states. APEDA made a presentation

about all the ongoing proposals highlighting the

status and problem areas. Several decisions were

taken in the meeting which are being followed

up with the respective State Government and

entrepreneurs.

IT related achievements

APEDA Website regularly updated with latest •notifications / Trade notice / Govt. orders / Quality matters and was enriched with other useful contents for the year 2011-12.

Agri Exchange portal upgraded with latest •Agro exports statistics and International trade databases with user friendly report development features. 1763 Buying and selling leads were received on this portal during 9 months.

New online peanut.net traceability system •implemented for tracking export consignment of Peanut and Peanut products to EU countries.

The existing online software applications were •upgraded with new user friendly features and facilities for better services to the stakeholders.

APEDA RCMC database uploaded / updated in •the DGFT servers as per system developed.

Traceability during the year 2011-12

Traceability system for Groundnut “peanut.net”

was developed and implemented successfully with

the support of its stakeholders.

Process initiated for setting up of HortiNet

Traceability system for some of the horticulture

products.

UNESCAP, ADB, APO and FAO invited APEDA at

various forums in Korea, Cambodia and Rome for

showcasing traceability initiatives taken by APEDA.

The TraceNet project (traceability system for

organic products) bagged the e-Asia award 2011 at

Taiwan and Indian Agriculture Leadership Award at

New Delhi.

Other Sectoral Developmental Activities

Horticulture sector

Promotional Programs: Mango promotion

program was organized during the year 2011 at

Dubai. In this events mango preparations were

served through identified super/Hyper markets

and Indian restaurants in order to make Indian

mango visible to general consumers and apprise

them of the uniqueness of the product. Dinner for

dignitaries was also organized.

Market Access issues

After persistent efforts of APEDA in close

coordination with the Ministry of Agriculture,

Australian Market for Indian mangoes opened

during the year 2011 with Vapor Heat Treatment

and Hot Water Treatment agreed as mitigation

measures for quarantine aspects. Initially the

BioSecurity Australia has agreed to import mangoes

from Lucknow, Barabanki and Saharanpur belts of

Uttar Pradesh only since these areas have been

found to be pest free. A team of two quarantine

experts from BioSecurity Australia visited for a

preliminary audit of the Vapour Heat Treatment

facility/Hot Water Dip Treatment facilities at

the packhouses of UP Mandi Parishad located at

Saharanpur and Lucknow. A small quantity of 1.03

MTs was exported by two exporters during the

year. Efforts are being strengthened for exports

during 2012 year.

Regular follow up has been maintained with Ministry

of Agriculture and United States Department of

200

Annual Report 2011-12

Agriculture - Animal & Plant Health Inspection

Services (USDA-APHIS) to complete the Pest Risk

Analysis (PRA) for market access for Pomegranates

to USA post irradiation. Later USDA-APHIS hosted

the final draft version of the PRA document for

public comments which were to be received by

28th November, 2011.

For market access for Indian table grapes in

Australia, the PRA has reached the final stages with

BioSecurity Australia having acceded to India’s

suggestions on mitigation of pests and it has been

intimated that the report will soon be published.

Follow up has been done on market access requests

for Walnut, grapes, pomegranates, okra and brinjal

in South Korea, Grapes, Walnuts, Banana and Litchi

in Chile, Mango, Pomegranate and okra in New

Zealand. The New Zealand Quarantine authorities

visited the Mango orchards and processing facilities

in May 2011.

CCC in Grapes: Consequent upon the Chlormequat

(CCC) problems of 2010 season, interactions

were held with all stakeholders and the Residue

Monitoring Plan document was modified

enhancing the list of agro chemicals to be tested to

171. Though there was a drop in export of grapes

to the EU market, but there was no incidence of

detection of residues beyond permissible levels,

during the year.

General

The visit of USDA-APHIS and Japanese Quarantine

Inspectors for overseeing the mango export

operations was successfully organized and

coordinated.

With report of higher than permissible levels

of residues of pesticides being detected in

consignments of Okra, curry leaves and betel

leaves in the Middle East and the European

Union, concerted efforts have been made to

develop vegetable clusters and 20 such clusters

were identified in Tamil Nadu, Karnataka, Andhra

Pradesh, Gujarat and Maharashtra. Training

programs were held in some clusters during the

year.

The visit of a Parliamentary Standing Committee on

Commerce was successfully organized to Himachal

Pradesh in July, 2011 and to Gujarat in November,

2011.

Livestock Sector

Opening up of new market like Algeria and efforts

were continued to open other markets like Russia,

CIS countries and China.

Take up the issues related to export of frozen

buffalo meat in the existing markets like Egypt,

Jordan, Saudi Arabia, Malaysia, Angola.

Market access to Middle East and SAARC countries

was resumed for export of poultry products after

the declarations of Bird flu free status in India.

Six member delegation from Malaysia visited India

from 9th April to 23rd April, 2011 for meat plant

inspection.

Six member delegation from Saudi Food and Drug

Administration (SFDA) visited India from 28th May

to 10th June, 2011 for meat plant inspection.

A DGFT notification was issued on 31st October,

2011 for export of meat and meat products from

India. The objective of the notification was to

ensure the export of meat and meat products,

only sourced from APEDA registered integrated

abattoirs or APEDA registered meat processing

plants that sources raw material exclusively from

APEDA registered integrated abattoirs/abattoirs.

Visit of Plant Registration Committee were

coordinated by APEDA for inspection of various

meat plants and animal casing processing units for

annual registration of meat processing plants for

exports.

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CHAPTER-9 Commodity Boards and other Development Authorities

In view of the increased emphasis on human,

animal and plant health and safety aspects in the

global markets, a number of steps were initiated

to improve capabilities for meeting these quality

requirements as per the notified standards. Meat

processing plants were encouraged to implement

quality systems such as HACCP, ISO, etc.

Cereals Sector

“Basmati for the World 2011” - International Chef Conference

APEDA organised an international Chefs Conference

at Hotel The Grand, New Delhi on November

22-23, 2011. 12 celebrity chefs and 40 eminent

food journalists/writers from identified markets

in different parts of the world came together, to

promote Basmati Rice.

During the event a Coffee Table book containing

Indian and foreign Basmati Rice recipes, edited

by the Chef Shilpi Gupta was released by the Dr.

Rahul Khullar, Commerce Secretary. Sessions for

interaction/briefing by Commerce Secretary both

for Indian and international media were held.

The main attraction of the two-day event was the

open kitchen where the Chefs cooked Basmati

dishes. On the first day, the kitchen was taken over

by the international Chefs.

The next day Indian Chefs were joined by famed

culinary author Nita Mehta, who delighted the

experts with her special Indian dishes. Chef Shilpi

Gupta and Chef P. Sekhar were amongst the other

participants.

This event is expected to lead to better reach of

Basmati Rice to main stream cuisine like Mexican,

Thai and Italian food.

Registration of Basmati Rice as GI

APEDA has been entrusted with the responsibility

by Govt. of India for protection of intellectual

property vested in Basmati Rice. The application

filed by APEDA with the GI Registry in Chennai in

Nov. 2008 was published in journal of the Registry

in May 2010 for opposition.

Response to the nine oppositions received by

the Registry have been filed by APEDA and it is

expected that the application would now come for

hearing soon.

Recognising Basmati as an Indian GI, the Court of

Appeal, Morocco has recently allowed APEDA’s

appeal and ordered to cancel the offending

trademark “LES CAFES BASMATI”.

Accreditation of Basmati Export Development Foundation (BEDF) Lab

Basmati Export Development Foundation (BEDF),

registered as a society in 2002. has mandate

for undertaking activities for development and

integration amongst diverse stakeholders such

as farmers, millers, traders, and exporters for

strengthening the supply chain.

For quality assurance, authentication and purity

check of Basmati, a world-class laboratory has

been set up in the premises of SVBP University of

Agriculture and Technology at Modipuram, Merrut

(UP) for DNA profiling and Quality Testing. This lab

was notified by DGFT w.e.f. March 31, 2010, as an

authorized centre for testing of Basmati rice samples

drawn by Customs for variety identification. About

1600 samples received from Customs and DRI have

been tested by the Lab

In June 2011 the Lab has obtained ‘Certificate of

Accreditation’ from National Accreditation Board

for Testing & Calibration Laboratories (NABL) under

ISO/IEC 17025:2005.

Focus on promotion of Basmati Rice in the international trade fairs

A special focus is given on promotion of Basmati Rice

in the most of the international trade fairs where

202

Annual Report 2011-12

APEDA participates with All India Rice Exporters

Association. During the year major fairs included,

Summer Fancy Food Show, USA in June 2011 and

Anuga 2011 at Germany in October 2011.

Processed Food Sector

For reducing the presence of aflatoxin in groundnuts,

regulation of export of peanut/peanut products

to EU and Far East countries a residue monitoring

protocol have been developed in consultation with

IOPEPC and other stake holders and a peanut.net

traceability software was implemented from 1st

April, 2011.

A meeting with the groundnut industry was

organized at Pune on 15th October, 2011 for

reviewing the issued related to development and

export of peanut and peanut products from India.

A team of Food and Veterinary Office (FVO) Mission

also visited APEDA on 25th October, 2011 to review

the action taken by India for control of aflatoxin in

groundnuts exported to EU and found significant

improvement in control systems, implementation

of Hazard Analysis & Critical Control Points (HACCP)

etc. by peanut processing units.

Considering the export potential of Indian wine,

APEDA had a brain storming session in Pune

on 10th November, 2011 with All India Wine

Producers Association and wine exporters for the

development and export of wine from India.

Regular interaction with All India Food Processors

Association and Industry to put emphasis on

promotion and export of value added food items

from India.

Agri Export Zones

The 60 AEZs sanctioned between 2001 and 2004 by

the Steering Committee envisaged an investment

of ̀ 1717.95 crores and export of ̀ 11821.47 crores

over a period of 5 years. Against these projections,

these AEZs are reported to have crystallized a total

cumulative investment of ` 1490.65 Crores and

cumulative export of ` 38363.00 Crores upto June

2011.

Welfare of SC/ST employees

The development of SC/ST employees is well

looked after by the Authority. APEDA has no

unresolved grievance from any SC/ST employees.

APEDA is maintaining reservation roster as per the

Government policy and recruitment and promotion

is strictly made in accordance with roster.

VII. Tobacco Board

Tobacco is an important commercial crop in India.

India is one of the largest producer and exporter of

tobacco in the world. Tobacco contributed about

` 15,502.38 crores as excise revenue in 2010-11

to the National exchequer and earned foreign

exchange of ` 4,210.41 crores. The sector provides

employment directly and indirectly to 36 million

people. Presently, tobacco is being cultivated in

an area of about 4.25 lakh hectares in the country.

The annual production of tobacco is nearly 700

Million kgs- including Flue Cured Virginia (FCV)

and non-FCV varieties. About 300 Million Kgs. of

FCV Tobacco is produced in an area of 2.16 lakh

hectares mainly in the States of Andhra Pradesh

and Karnataka. Among the Non-FCV types, Burley,

Harvel De-Bouxo Rio Grande (HDBRG) and Natu

are the exportable styles. Bidi tobacco is cultivated

in an area of about 1.67 lakh hectares, mostly in

the States of Gujarat and Karnataka with an annual

production of nearly 160 Million kgs.

Insurance Schemes for Growers/Barns

& Stocks

Implementation of Group Personal Accident Policy and Barn & Stock Insurance Policy in Andhra Pradesh, Odisha & Maharashtra

For 2011-12, the Board has arranged insurance

coverage for registered tobacco growers in

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CHAPTER-9 Commodity Boards and other Development Authorities

Andhra Pradesh, Odisha and Maharashtra under

comprehensive package policy by M/s. Oriental

Insurance Co. Under the package the growers are

provided Group Personal Accident Policy Coverage

for a sum assured of ̀ 1,00,000 per grower. Further

the policy package provides for comprehensive

insurance coverage for tobacco barns, stocks and

ancillaries, for sum assured of ` 5,40,000 The

particulars of growers and barns covered are as

follows (2011-12 crop season).

Table containing number of Growers, number of

Barns covered and Sum Insured is at Table 9.13.

Table 9.13

Group Personal Accident Policy and Insurance Policy

Name of the Policy

No. of Growers

No. of Barns

Sum Insured

(`)

Group Personal Accident Policy

44457 ---- 1,00,000

Comprehensive insurance for tobacco barns, stocks & ancillaries

---- 37151.75 5,40,000

Growers’ Welfare Schemes

Tobacco Board has created a “Tobacco Growers

Welfare Fund” in 2009-10 with corpus of ̀ 25 crores

with contribution in the ratio of 1:2 by the tobacco

growers (` 1000 each) and the Tobacco Board

(` 2000 for each grower) to implement various

welfare schemes. The schemes in operation during

2011-12 are:

1. Providing Relief in the event of death of the grower members (` 25000 for natural death and ` 50000/- for accidental death).

2. Providing financial relief for treatment for major illnesses requiring surgery for the growers and family members of the growers (` 25000 interest free loan).

3. Providing loans on interest for education to the dependent children of the grower members (` 25000 @4% interest loan).

4. Providing amount as advance for the marriages of girl child of the grower member (` 25000 interest free loan).

5. Providing interest free loan for repairing the barns damaged due to natural calamities (` 25000 per barn fully damaged ` 10000 per barn for partially damaged).

The details of relief/ assistance extended scheme

wise during the period April 2011 to October 2011

(2011-12) are at Table 9.14.

Table 9.14

Scheme wise Beneficiaries and Relief / Assistance Sanctioned during 2011-12 (April-

October)Category Particulars No. of

BeneficiariesAmount (`)

Grants Natural death 442 1,10,50,000

Accidental death

32 16,00,000

Total 474 1,26,50,000

Girl – child marriage

129 32,25,000

Loans for medical treatment of Major Illness requiring surgery

15 3,75,000

Loans for repairing the barns damaged due to natural calamities

- -

Loans with interest

Loans for Education of Children with 4% interest

37 9,25,000

Total 655 1,71.75,000

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Annual Report 2011-12

Government of India, vide their letter dated

06.01.11 has communicated sanction for an

amount of ` 27.505 crores towards payment of

compensation to the tobacco growers for damage

of their tobacco crop due to cyclonic weather

conditions and incessant rains during November-

December, 2010 in Andhra Pradesh.

The details are as follows:-

Compensation for fully damaged crop – • ` 17.85 crores @ ` 6000 per ha., (Area 29,750 ha)

Compensation for partially damaged crop –• ` 9.655 crores @ ` 4000 per ha. (Area 24,136.80 ha).

The compensation amounts were directly •credited into growers’ bank accounts during January, 2011.

Auction

The auction system for sale of FCV tobacco was

introduced for the first time in Karnataka in 1984

followed by Andhra Pradesh in 1985.

Progress made during 2011-12 (April –

October, 2011)a) A total quantity of 173.25 M.kgs. of 2010-

11 Andhra Pradesh FCV tobacco crop was marketed in 20 auction platforms at an average price of ` 87.64 per kg. Out of this, during 01.04.11 to 13.10.2011 (the last auction day for the season), a quantity of 167.49 M.kgs. of tobacco was marketed at an average price of ` 86.70 per kg.

b) A quantity of 14.70 M.kgs. of 2011-12 Karnataka FCV tobacco crop was marketed at an average price of ` 103.99 per kg. upto 31.10.2011. It is anticipated that the entire estimated production of about 105.58 M.kgs. of 2011-12 Karnataka FCV tobacco would be marketed by the end of March 2012. The average price realized as on 31.10.2011 is by ` 6.48 per kg. (6.14%) over the average price of ` 97.51 per

kg. realized by the farmers of Karnataka for the same volume sold last year.

Export - 2010-11

The exports of tobacco and tobacco products

during 2010-11 were 252298 tons valued at `

4210.41 crores (923.94 M.US$) against 259566

tons valued at ` 4402.29 crores (928.37 M.US$)

exported in 2009-10.

Progress of exports in 2011-12 (April

–October, 2011)

During April – October 2011, exports of Tobacco

and Tobacco Products were 135065 tons valued at

` 2182.33 crores (476.70 M.US$) against 145471

tons valued at ` 2395.16 crores (522.39 M.US$)

exported during the corresponding period of last

year.

During April – October 2011, the unmanufactured

tobacco exports were in the order of 112449 tons

valued at ` 1627.35 crores and exports of Tobacco

products are in the order of 22616 tons valued

at ` 554.98 crores. The unmanufactured tobacco

exports had declined by about 10% in quantity

terms and 13% in value terms, while the exports of

tobacco products increased by 7% in quantity terms

and 5% in value terms during this period. Overall,

exports of Tobacco and Tobacco Products declined

by 7% in quantity terms, 9% in Rupee terms and

9% in Dollar terms over the corresponding period

of last year.

With a view to promote the exports of tobacco and

tobacco products, the Board had participated in

international exhibitions at the following places to

show case the Indian unmanufactured tobacco and

tobacco products.

1) Inter Tabac 2011, Dortmund, Germany during 23-25 Sep., 2011

2) World Tobacco Expo, 2011, Munich, Germany during 8-10 Nov., 2011

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CHAPTER-9 Commodity Boards and other Development Authorities

3) Tabexpo 2011, Prague, Czech Republic during 15-18 Nov., 2011

As a part of export promotion activities, Chairman,

Tobacco Board had led a tobacco trade delegation

to China along with Mr. Ajit B. Chavan, Deputy

Secretary, Ministry of Commerce & Industry and

trade members during 26-30 September, 2011.

The delegation held discussions with the officials of

STMA, CNTC & CTI on the issues relating to revival

of exports of Indian tobacco to China.

The Tobacco Board had issued advertisement in

International Tabacco magazines at a cost of ` 3.18

lakhs from April 2011 to October, 2011 promoting

Brand Image of Indian Tobacco and Tobacco

products.

Trading Wing

Modified Personal Accident Insurance Scheme

Modified Personal Accident Insurance Scheme was

introduced in 2005 and modified in December, 2008,

by the Price Stabilization Fund Trust established

under the Ministry of Commerce & Industry.

The Scheme will cover the growers in the sectors

of Tea, Coffee, Rubber and Tobacco having

plantations upto 4 hectares only. The scheme

will also cover the permanent plantation workers

working on these plantations. Growers who have

enrolled themselves under the PSF scheme earlier

don’t have to pay membership fee. The growers of

tobacco have to pay ` 100 for availing the benefit

of the Personal Accident Insurance Scheme, as they

did not join the main PSF Scheme. For tobacco,

the family members of the growers working in

cultivation are also considered for insurance.

The vendor agency during the years 2009-10 & 2010-

11 was National Insurance Company Limited and

the vendor agency for 2011-12 & 2012-13 is M/s.

Cholamandam M.S. General Insurance Company

Limited. The premium for the policy to be issued

for every individual would be ` 22.06 per annum

(including Service Tax) for the year 2011-12 & 2012-

13 and this would be subsidized by PSF Trust @ 50%

of the premium. The share of premium payable by

the individual growers and their beneficiaries is `

11 per annum. The insurance cover will be upto

` 1.00 lakh per person. The Personal Accident

Insurance Scheme is a standalone scheme and is

not linked to the main PSF Scheme.

During the year 2011-12 (April-October 2011),

21413 tobacco growers and 27949 workers in

Andhra Pradesh and Karnataka have joined under

the Scheme. During 2011-12 (April – October 2011)

an amount of ` 5.00 lakhs was released towards

compensation under the said scheme in respect

of five death cases of tobacco growers and their

workers.

VIII. Marine Products Export Development Authority (MPEDA)

The Marine Products Export Development

Authority, a statutory body under the Department

of Commerce, Ministry of Commerce & Industry is

mandated for the development of export of marine

products from India.

Export

Compared to the corresponding period of previous

year, Exports of marine Products during the first nine

months of 2011-12 registered a growth of 6.67% in

quantity, 27.62% in rupee value and 24.06% in US$

realization as indicated in Table 9.15.

Table 9.15

Export Performance of Marine ProductsExport details 2010-11

(April – December)

2011-12(April –

December)

Growth %

Quantity Tonnes 612505 653387 6.67

Value in ̀ Crore 10018.47 12785.98 27.62

US$ Million 2213.82 2746.48 24.06

Unit Value $/Kg 3.61 4.20 16.30

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Annual Report 2011-12

Major Export Markets

South East Asia become the No.1 market for Indian

marine products with a share of 25.67 % in US $

realization and 39.54 % in quantity followed by

European Union, United States of America, Japan,

China and Middle East.

Major Items of Export

Frozen Shrimp continued to be the major export

item during the period of April to December 2011

accounting for 50.70% of the total US $ earnings.

Fish, the second largest export item in value term,

accounted for a share of about 39.66% quantity and

19.25 in US $ earnings. Frozen Fish exports during

the period increased by 12.50% in quantity, 28.45%

in rupee value and 21.87% in US $ earnings.

Thrust Areas

To facilitate enhanced export of marine products

MPEDA has been giving greater thrust in the

following areas: -

1. Extending financial assistance for conversion / construction of Tuna Long Liners and imparting training to crew to develop tuna industry to boost the export of tuna

2. Implementation of Catch Certification scheme for preventing/discouraging illegal, unreported and unregulated (IUU) fishing.

3. Diversify culture practices by popularizing cage farming of finfish and organic culture of shrimps and conducts demonstration of Seabass culture, mussels farming.

4. Implementation of Organic aqua farming programme to promote organic farming of Black Tiger Shrimp and Scampi in the maritime States.

5. Promoting ornamental fish breeding for export and also for employment generation in rural and semi urban areas.

6. Research and Developmental activities in developing and disseminating appropriate technologies by innovative methods for increased production and sustainable development of aquaculture of commercially important fin fish and shell fish through Rajiv Gandhi Centre for Aquaculture (RGCA).

7. The upgradation of fishing harbours to international standards is a must for sustaining / expanding our international markets.

8. Assist the setting up of state-of-art processing facilities for value added marine products meant for export.

9. MPEDA is operating a Sea-freight assistance scheme for the promotion of export of value added marine products by the registered seafood manufacturer exporters. The scheme also offers assistance for import of raw material for further processing and re- export as value added seafood.

10. MPEDA has introduced a voluntary logo of quality for promotion of value added consumer products in major markets. The Inter Departmental Panel has approved one more unit in Andhra Pradesh under the Logo scheme and the logo is likely to be awarded to them shortly.

11. MPEDA is operating an insurance scheme with M/s. United India insurance co. Ltd., to safe guard the welfare of the workers employed in seafood processing and pre-processing industry.

12. Ensure production of quality seafood by setting up sophisticated laboratories in the maritime States.

13. Extending linkages to the grass root level by ensuring better extension packages to fishermen / farmers and the workers engaged in various stages of processing of marine products.

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CHAPTER-9 Commodity Boards and other Development Authorities

14. Establishing presence of Indian Seafoods in major International markets by co-branding Indian products with seafood giants abroad.

15. Participate in International Seafood Shows to showcase the strength of Indian marine products industry and trade relationship and Organized biannual India International Seafood Show and Aqua Aquaria India.

16. Registration Certificates and RCMC Certificates are issued on-line through MPEDA Offices. Financial Accounting, Payroll, Pension, Personnel, GPF, Stores and Inventory, Asset Management etc are computerized. Subsidy Application processing & Subsidy disbursement and NRCP Lab testing are also computerized.

Appropriate schemes/measures have been devised

to achieve these objectives.

Steps taken to increase production and exports

Extending financial assistance for conversion/ •construction of tuna long liners and imparting training to crew for the development of tuna industry.

Assistance for fishing vessel owners for the •installation of insulated fish hold / refrigerated seawater system / ice making machinery for onboard fishing vessel for better preservation of catch and earning of more value for the catch.

Under the Catch Certification scheme •introduced from 1st January 2010, MPEDA have validated 18113 certificates and for the period 1st April 2011- December 2011, 6812 catch certificates are validated.

Extend technical assistance for the •development of new area under shrimp culture as well as for sustainable farming practices. Also provide financial assistance to new farm development in all the maritime States of the country.

With the introduction of Pacific white shrimp •into India, a significant increase has been noticed in the aquaculture production from the maritime States of the country. Steps have been initiated to setup the broodstock multiplication centre at MPEDA facility at TASPARC, Visakhapatnam by RGCA so that required number of broodstock for the sector could be produced in a bio-secure condition and can be supplied to the sector as and when required. Efforts are also on for assisting the aqua farmers in establishment of nursery rearing centres of exportable varieties of finfish and shellfish in various maritime States.

In a high level meeting attended by Chief •Minister and other officials of the Governments of Kerala, appraised the potential and constraints in utilizing water logged areas in the State for scampi farming. Based on the outcome of the meeting, a task force was formed and the surveys of the potential areas are under progress.

Encouraging formation of Aqua farmers •Welfare Societies of small farmers for adoption of code of practices for sustainable shrimp culture by extending financial assistance for setting up common facilities.

To popularize the technology on crab farming, •field demonstrations continued and two new programmes were initiated in Orissa for which the cost for inputs like seed, feed and crab fencing is being extended by MPEDA.

Demonstrations of Seabass are in progress in •the States of Gujarat, Maharashtra, Goa, Kerala, Orissa and Andhra Pradesh. Reports indicate that the growth is satisfactory. Efforts are taken to initiate more number of demonstrations in Tamil Nadu, Kerala and West Bengal.

MPEDA extending financial assistance for •establishment of PCR diagnostic laboratories in the hatcheries / private labs under shrimp health management.

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Annual Report 2011-12

GIS Mapping of shrimp and Scampi farms in •the maritime States except West Bengal is in the final stages of completion. Efforts are also being made to utilize the databases developed for the intended purposes.

MPEDA have been involved in various •promotional activities like organizing training programmes on management practices on improving the quality of the culture variety, avoiding the use of antibiotics in aquaculture operations, diversification of aquaculture varieties like Seabass, Crab, etc. To facilitate quality supply of the inputs like seed and feed to the aqua farmers, MPEDA is involved in the monitoring the hatcheries on quarterly basis and collecting the feed samples from production units for quality analysis.

India Organic Aquaculture Project (IOAP) •involves in the development of certified organic shrimp/ scampi seed, certified organic aqua feed, organic certification of aquaculture farms and organic certification of processing plants to boost the export of organic aqua products from India. MPEDA is continuing the initiative to promote the production and export of Organic Seafood from the country.

Organic shrimp produced in West Bengal and •Andhra Pradesh were exported to Europe, for the first time. The organic freshwater prawn (Scampi) produced from Kerala was also exported to Europe during the year. The Authority plans to expand the area under organic aquaculture in order to increase the organic seafood production from the country to meet the international demand.

MPEDA is encouraging mass production of •good quality ornamental fish by assisting breeders for setting up modern breeding centers. Under this scheme, subsidy assistance up to maximum of 50% of capital investment is given for setting up ornamental fish breeding units classified into 3 grades based on the

investment and production capacity. The maximum assistance for Grade - I, II & III unit is ` 75,000, ` 2,00,000 & ` 7,50,000 respectively. Employment generation in rural and semi urban areas is a bye product of this scheme.

The guidelines for Green Certification of •Freshwater Ornamental fish have been prepared and released to ensure product quality, safety and traceability and thereby adding value to the produce. MPEDA has also formulated the guidelines for the registration of Ornamental Fish Breeding Units (OFBU) for a stable, healthy and sustainable ornamental fish sector in the country.

MPEDA assists the processors/pre-processors •to construct/renovate captive/ independent pre-processing centers as per EU/HACCP guidelines.

MP• EDA introduced the Interest Subsidy scheme to compensate a certain amount of interest payable by the plant owners to the bankers from whom they have availed loan for the up gradation of their facilities to achieve equivalency to EU/GOI norms.

An Inspection Team of the Food and Veterinary •Office (FVO) of the European Commission visited India from 14th to 25th November, 2011. During their visit they had monitored the maintenance of hygiene and sanitation in the primary production areas such as fishing vessels, fishing harbours, landing centres, aqua farms, seafood processing establishments and ice plants etc.

In order to improve the hygienic conditions of •the fish landing centers and ensure the quality of the raw material used for processing, Tube ice making machines / chill rooms were being installed at three harbours in Andhra Pradesh and two harbours in Tamil Nadu.

To prevent unhygienic and unauthorized •pre-processing activities, two Common Pre-processing Centres (CPC) have been constructed

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CHAPTER-9 Commodity Boards and other Development Authorities

at Ambalapuzha and Sakthikulangara in Kerala. A proposal for another CPC at Balramgarhi in Orissa has been submitted to the States Cell of MoCI for availing funds under ASIDE scheme.

A Japanese Study Team visited India from 24-•28 October 2011 and undertook a study on capacity building and quality control system management including implementation of HACCP system in Indian Seafood Industry, relevant EU Regulations for promoting export of marine products to the European Union etc. The team visited processing plants, fishing harbours, labs MPEDA HO and EIA Kochi.

MPEDA laboratories at Kochi, Nellore, and •Bhimavaram are analyzing samples under National Residue Control Plan (NRCP) 2011. During January to October a total of 2490 samples were received and 2397 samples analysed by these laboratories against the target of 2,598 samples. MPEDA Lab at Bhimavaram and Kochi are approved by EIC for analyzing commercial samples also.

MPEDA has set up 16 ELISA Screening •Laboratories in various maritime States with automatic ELISA testing equipment to screen for the presence of antibiotic residues like Nitrofuran metabolites and Chloramphenicol in cultured shrimp under the Pre-Harvest Testing (PHT) programme, before the aqua cultured shrimp / scampi are sold to the processors. Under the PHT programme, during January to October a total of 21,277 samples were tested by the 16 ELISA labs.

The monitoring of Cadmium content in •Cephalopods (Squid, Cuttlefish & Octopus) is done / studied in samples caught in all the regions on East & West coasts. About 100 samples have been allocated to different field offices located along the East and West coasts.

Under the project for Monitoring of Pesticide •Residues at National Level (MPRNL) - funded

by Department of Agriculture (MoA), during the year 2011-12, 480 samples of inland fishes and crustaceans, marine crustaceans from the maritime States of India will be analysed. During April - October 2011, 280 samples have been analyzed and the results communicated.

MPEDA offer developmental assistance for the •export of ornamental fishes/ aquarium plants to the registered exporters and the assistance is to the tune of 10% of FOB value.

To increase the processing capacity of •value added seafood products MPEDA is operating various subsidy schemes for the benefit of existing exporters and also to the new entrepreneurs for creation of required infrastructure facilities.

MPEDA introduced the Technology Upgradation •Scheme for Marine Products (TUSMP) to provide financial assistance to exporters for setting up new units (Category I), to expand the existing production capacity for value added products (Category II) and for diversifying into value addition (Category III). The assistance will be subject to full commitment of the exporter by fulfilling an annual export obligation covering specifically notified value added products.

MPEDA extending financial assistance for •establishment of modern cold storages to store various seafood products at –20˚C for maintenance of the quality of frozen marine products till shipment.

MPEDA has a vision to set up Special Economic •Zones (SEZ) to promote import of raw material for value addition and re-export and to make India a seafood processing hub.

Under export promotion schemes, MPEDA •participated in major international seafood fairs around the world and displayed a wide range of India’s products especially value added products to generate awareness and demand.

In order to disseminate the vast potential of the •

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Annual Report 2011-12

fisheries and aquaculture sector and to highlight investment opportunities in this field by Indian entrepreneurs, MPEDA has participated in domestic fairs. MPEDA organised the 18th Indian International Seafood Show at Chennai from 29th February to 2nd March 2012 and a total 698 delegates participated in the Seafood Show. About 100 number of foreign delegates also participated in the show.

Aqua Aquaria India 2011 was organised by •MPEDA in February 2011 which was attended by large number of Aquaculture farmers and Ornamental fish breeders.

MPEDA invites delegation to visit India and •sends delegation to leading seafood-buying countries to strengthen the trade links and

opened up many business opportunities for the seafood trade which would be further strengthened by future delegations

NETFISH and NaCSA, the two societies •formed for undertaking extension education programmes continue their effort in capture and culture fisheries sectors, for quality up gradation and for capacity building of small scale shrimp farmers, cluster formation and management.

Rajiv Gandhi Centre for Aquaculture (RGCA) •continues its pioneering effort in Research and Development of new Aquaculture Hatchery Technologies for production of seeds and farming technology for increased production form Aquaculture.