The Hindu : Karnataka / Bangalore News : Value addition to give horticulture a boost

Online edition of India's National Newspaper
Saturday, Sep 01, 2007
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Karnataka

Karnataka - Bangalore

Value addition to give horticulture a boost

Nagesh Prabhu

Seven terminal markets for fruit and vegetables to be set up

Proposals for three markets have been submitted to National Horticulture Mission
The terminal markets will offer fair prices to farmers by enhancing value addition

BANGALORE: In order to tap the potential in the horticultural sector, the State Government plans to establish terminal markets for fruit and vegetables in Mysore, Belgaum, Bangalore, Gulbarga, Bijapur, Hubli and Channapatna.

Karnataka, which ranks third in the country in area under horticulture and production of vegetables and fruit, has submitted proposals to the National Horticulture Mission (NHM) seeking approval and funds to establish terminal markets in Channapatna, Hassan and Bangalore. The State Cabinet on Thursday approved markets in Bijapur, Hassan, Channapatna and Mysore. All markets will be established as private-public partnerships, sources in the Secretariat told The Hindu.

According to NHM norms, each terminal market will come up on 100 acres with an investment of Rs. 100 crore. The NHM will provide 25 per cent subsidy to the developer of the market. Three private firms have submitted expressions of interest to the State Government to establish a market at Byatarayanapura (Hebbal Road) in Bangalore. Out of 29 acres available there, the developer will be asked to establish the market on 10 acres and the rest of the land will be utilised for non-marketing purposes, official sources said.

Horticulture accounts for 40 per cent of total income in the agricultural sector in the State. The value of horticultural produce amounts to Rs. 8,400 crore a year. Horticultural crops are cultivated on 16 lakh hectares, which is increasing by five per cent annually. The annual production is 96 lakh tonnes, with an increase of six per cent a year.

Horticulture accounts for 30 per cent of country’s agricultural Gross Domestic Product from 8.5 per cent of cropped area. China is currently the world’s largest fruit and vegetable producer.

Many intermediaries

In the State, marketing chains are highly fragmented, often with six to eight intermediaries. Farmers tend to receive a small share of what consumers pay. The average wastage in the horticultural sector, between the farm gate and the wholesale sector, is about 15 per cent.

The terminal markets will offer fair prices to farmers by enhancing value addition by cleaning, processing, storing, grading and packaging. The developer of the market will establish “spokes” or collection centres at different places for collection of vegetables and fruit from growers. Payment to growers will also be made at the collection centres, officials said.

Lack of awareness

Farmers lack awareness about market conditions because of poor linkages in the distribution chain and have inadequate access to cold storage facilities, leading to seasonal gluts and extreme price variation. In Bangalore, for example, tomato prices range from Rs. 3 to Rs 25 a kg during the year.

The recently amended Agricultural Produce Marketing Committee (APMC) Act will facilitate more investment by private players in the agri-market, experts say.

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