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1 Title of the Research Project /

study

An Analysis of Potato Value Chain in Tamil Nadu

2 Name of the Agency and

Address

Domestic and E!ort "ar#et $ntelligence Cell%

Centre for Agricultural and Rural De&elo!ment 'tudies%

Tamil Nadu Agricultural (ni&ersity%

Coim)atore*+,1 --.

Phone0 -,22*2,.1,-

. 'tatus of the A!!licant Professor

, Details of Princi!al

$n&estigator P$3

DrNAjjan% Professor%

De!artment of Agricultural and rural "anagement%

Centre for Agricultural and Rural De&elo!ment 'tudies%

Tamil Nadu Agricultural (ni&ersity%

Coim)atore*+,1 --.

Details of im!ortant research

!rojects / schemes )eing

carried out )y the P$ and the

s!onsoring agency 4ith

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financial su!!ort from &arious

agencies / organisation%

es!ecially from NA5ARD

+ Name / designation of other

research staff to )e associated

4ith the !roject% !erson 4ise

6 A&aila)ility of technical staff

and infrastructure in the

agency to underta#e the

!ro!osed !roject

7 Pro!osal details Value chain !romotion is an effecti&e 4ay of fostering rural*ur)an lin#ages 8irstly% the

conce!t !ro&ides a useful analytical frame4or# for mar#et and su)*sector analysis Value chains

descri)e !roducti&e !rocesses around a !roduct from the !ro&ision of in!uts to !roduction%

trans!ortation% transformation% !rocessing% mar#eting% trading% and retailing to final consum!tion

'ince !roduction only translates into income once final consumers really demand and )uy goods%

the &alue chain a!!roach encourages loo#ing at the !roduction !rocess from the consumer9s end

'econdly% the meta!hor of the chain em!hasi:es the fact that most goods are !roduced )y a

se;uence of interlin#ed actors and acti&ities The a!!roach focuses on the analysis of the

institutional arrangements that lin# the &arious economic !layers% 4hich are< trust% &ertical and

hori:ontal integration and organi:ation% and contracts

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Thirdly% it highlights the im!ortance of !ri&ate sector de&elo!ment 8or the !ur!ose of

fostering agricultural gro4th and aligning the agricultural sector de&elo!ment 4ith ur)an and

other trends in society% it !ro&ides a fairly holistic frame4or#% 4hich can encom!ass a num)er of

different de&elo!ment acti&ities

The starting !oint for &alue chain analysis is usually a !artici!atory chain ma!!ing

4or#sho!% in 4hich re!resentati&es from all grou!s in&ol&ed in the !rocess de&elo! a joint

understanding of the res!ecti&e chain This eercise re&eals strengths and 4ea#nesses of the &alue

chain and ser&es as a starting !oint for mutual trust*)uilding Discussions e&ol&ing around in!ut

;uality% logistic arrangements or !roduct standards often hel! !roducers to understand the realdemand for their ra4*!roduct =istening to !rocessors and consumers can )e an eye*o!ener for

!roducers and traders 4hen it comes to consumers9 needs% the right ;uality% and the right ;uantities

at the right time in the right !lace

Importance of Post Harvest Management in Value Chain

A !ost*har&est huge loss of fruits and &egeta)les is a matter of gra&e concern for $ndia9s

agriculture sectorDr " ' '4aminathan3 5ut this is a general !henomenon and it is ha!!ening in

almost e&ery de&elo!ing countries and this also used to ha!!en in de&elo!ed country as 4ell An

additional constraint to im!ro&ing this situation is that in most de&elo!ing countries including

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$ndia% the num)er of scientists concerned 4ith !ost*har&est food losses is significantly lo4er than

those in&ol&ed in !roduction research $n the early days of horticulture in most de&elo!ed

countries% hea&y losses occurred in much the same manner as they do today in $ndia $ncreasing

industriali:ation in technologically ad&anced nations gradually )rought a)out im!ro&ements in

cro! handling Ela)orate har&esting e;ui!ment re!laced the crude har&esting tools Collection

centres 4ere strategically esta)lished in major !roducing areas Containers 4ere remodelled to add

more !rotection to the !roduce Commercial storage !lants 4ere installed and grade standards

ado!ted Engineers and economists )ecame more and more a4are of ra4 material )eha&iour

Concomitant ad&ances in Refrigeration Technology in the de&elo!ed countries ha&e made !ossi)leesta)lishment of cold chains for the entire !ost*har&est and handling o!erations At the

institutional le&el !ost*har&est research 4as initiated And a num)er of !ac#ing houses 4ere

installed% cou!led 4ith the de&elo!ment of intensi&e training !rogrammes The im!ro&ement of

!roduct ;uality and reduction in !ost*har&est losses )ecame the main concern of !roducers%

middlemen% mar#eting s!ecialists and consumers Today% enormous &olumes of ;uality

horticultural cro!s !roduced in technologically ad&anced countries are made a&aila)le to millions

of !eo!le through im!ro&ed &alue addition in the !ost*har&est handling Thus% historically and )y

necessity% &alue addition is the im!ortant !art of normal !ost*har&est management in agriculture

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The Process of Value Chain Analysis Involves the Following Steps

Chain Delimitation0 This includes defining the )oundaries of the analysis in terms of the !roduct

to )e trac#ed% acti&ities to )e included along the chain and setting a geogra!hic )oundary for the

chain

Chain Mapping0 This in&ol&es listing the &arious acti&ities in a chain in a se;uential order

Information athering0 This in&ol&es collecting all the rele&ant information re;uired for a

thorough ma!!ing of the chain

Performance evaluation0 This ste! includes the analysis of the information gathered in terms of

cost and &alue addition at each le&el of o4nershi!

The Decision to Analyse the Value Chain of Potato was ma!e for following "easons

Potato !roduces more edi)le !rotein !er unit land and time than many other major cro!s

such as 4heat A)out 7> of the !otato !lant is edi)le com!ared to -> in cereals3 8ood

and Agricultural ?rgani:ation of the (nited Nations% 2-1-3 The efficient management of

!otato &ale chain can thus )e crucial in the fight against hunger

@i&en the fact that !otato generates high em!loyment in the farm economy a)out .-

million man days annually% 'ingh and Rai% 2-113 4hen com!ared 4ith other major cro!s%

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an efficient !otato su!!ly chain is also im!ortant in ensuring rural !ros* !erity and !ro!er

li&elihood as it generates larger returns !er unit land% time and man* hours

?n the glo)al ma!% $ndia is the second largest !roducer of !otato )ehind China 8ood and

Agriculture ?rgani:ation of the (nited Nations% 2-1.3 'o an efficient !otato &alue chain

in $ndia 4ill )e im!ortant in the 4orld food demand and su!!ly scenario

?ut of the total fast food segment in $ndia% !otato )ased !roducts li#e 8rench fries% 4edges%

!otato fla#es constitute an amount of more than Rs 6- million% 4hich is around .- !er

cent of the total mar#et in this segment @lo)al Agri*'ystem Pri&ate =imited% 2-1.3

71 ?)jecti&es of the Project

$t could )e understood from the field &isits% !ast studies as 4ell as interaction 4ith the farmers and other

channel !artici!ant that% major !ro)lem inthe !roduction and !ost har&est acti&ities for !otato ha&e not !ic#ed

u! commensurate 4ith the le&el of !roduction 8urther% su!!orti&e mechanism in the form of agricultural in!uts%

farmers association and !ost har&est infrastructure set u!% such as cold storages% mar#eting systems and

institutional credit ha&e not come u! in !ro!ortionate num)ers for de&elo!ment of !roduction and !ost har&est

&alue chain acti&itiesThe details of )ro#en food su!!ly chain !resented in the chart 1

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Chart#$ %ro&en Foo! Supply Chain

The major issues for !otato due to seasonality in !roduction and !oor !ost*har&est !ractices% !ost har&est

losses are more in su)*standardi:ed su!!ly system thus reducing further a&aila)ility of !otato for consum!tion%

&alue addition and e!ort There are also issues such as 4ea# institutional arrangement% limited mar#eting

facilities% lac# of coordination among the &arious institutions 4hich act as hindrance to the gro4th of !otato

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sector There are !otato gro4ers association )ut they are not a)le to !lan% organi:ed !roduction and mar#eting

system to reduce the mar#eting channels% 4hich are so long thus increasing the margins to the middle men and

thus aggra&ating mar#eting inefficiency The details of non*&alue adding !layers in the su!!ly chain are gi&en in

chart 2

Chart '$ (on)Value A!!ing Players in the Supply Chain

ence this study focuses the a)o&e issues in the !otato su!!ly chain in Nilgiris district of Tamil Nadu