Promotion of Micro-Enterprises and Fair Trade:

The producers in rural and tribal areas are extremely poor and have little or no access to resources and information. They are hardly aware of the developments beyond the boundaries of their villages. A very innovative and simple solution is required to rectify the situation involving a step-by-step involvement of the people and the enterprises of the livelihood sector will be the ultimate solution.

The main objectives of CPSW aim at strengthening the Business Development Service (BDS), market access of marginalized producers; increase demand for fair trade products in regional/domestic markets and to encourage private sector participation in poverty alleviation. The sectors and products chosen to improve and increase sustainable livelihood in Orissa, include agricultural produce, non-timber forest produce and crafts. Its programmes have a three-tiered approach targeted at capacity building; promoting fair and ethical business practices and influencing policy and trade environments.

Key aspects of work:

1. To analyze the supply and value chain.
2. Identification of Key issues, assessment of skill gaps;
3. Market linkages and market access;
4. Role of different stakeholders like Govt, donor agencies, corporate sectors and traders;
5. Exploring existing knowledge and skill to develop market access strategy on market
promotion technique, product development, market opportunity-internal and external, etc.

Promotion of “Fair Trade” practices:

Fair price – living wage
Premiums of community development
Advanced payments
Good treatment of workers
Skills development
Long-term relationships

Value addition and market access to SPICE and AGRI-PRODUCTS:

The backward districts of Orissa like Kondhmal, Koraput, Rayagada, Nowrangpur, Bolangir and Kalahandi are mainly inhabited by Scheduled Tribes. Their economic activities include growing of crops like Turmeric, Ginger, Ragi, Pulses (such as Black-gram and Arhar), Chilli and vegetables, fruit Crops like Mango, Jackfruit, Pineapple and collection of a number of non-timber forest products like hill-broom, tamarind, siari leaf, kusum, mahul seed etc. Turmeric cultivation is by and large confined to the tribal districts of the state. CPSW has developed units to process, grade, add value and pack it in different sizes and reach the customers. The products are totally organic and can reach a niche market.

“Kondhmal Organic Spices Pvt Ltd. (KOSPL)”:

KOSPL was promoted in 2002 as a producer company to promote market access. CPSW decided to procure Turmeric and other products like ginger, pulses and mustard seeds in 1998. The objective was to provide a remunerative support price to the small and marginal farmers (from whom the items were procured), to introduce correct weights and measures, to clean and grade the products at a central level, to convert the turmeric fingers into powder and process the other products as per consumer demand in cities, to pack and sale the product through its income Generating Programme Unit (IGP Unit).. In the meantime ,CPSW has created certain facilities like milling, processing and storage of small capacity and constrained with shortage of working capital, the important out comes of the initiative are : the unit provided remunerative support price; it did not incur any loss ; it organized a highly motivated sales-force which concentrated in retail and door-to-door selling and took initiative to go for marketing a mix of products procured from Kondhamal such as turmeric, ginger, pulses and mustard seeds. About 500 retailers in Bhubaneswar and about 32 stockiest in Orissa are part of the marketing network created over the years.

Kospl aims at market competitativeness, fair trade and development of producers. As a pvt. Ltd. company, it can access banks/Financial institutions for bigger volume of capital. CPSW is trying to make it a viable business organization. Membership and shares are hold by cooperatives.

Post-harvest processing, storage and value-addition:

Most of the products sold by the farmers do not fetch them a good price mainly due to lack of primary processing such as cleaning, grading etc. and results in distress sale. Specially, the vegetables face more losses due to less lifetime and perishable in nature. Promotional activities by the project has resulted in production of a sizable quantity of certain products by now and as projected, it will increase significantly in coming three years. There is need to promote value addition and marketing to avoid distress sale and loss of confidence of the farmers. In addition to 30% higher returns on farm income, this would generate a lot of employment opportunities for the land less families in the area, which can prevent distress migration.

Presently there is high distress sale of paddy. Before 3 to 5 years, Onion was sold for 0.25 paise to 0.50 paise per Kg. This phenomenon is not due to surplus production, but due to lack of organizations among the producers, lack of Market information and lack of Infrastructure for storage. In Orissa this sector has been highly neglected by the Govt. and the trading community are taking advantage of this. Hence, there is a need for the project to organize the producers, build up infrastructures, provide regular market information and build market linkages.    Hence, the farmers are trained on primary processing, value-addition and storage. This benefits in many ways such as:

Prevention of post-harvest losses

Value addition to products

Maintain or improve the quality

Better utilization of surplus products

Availability in off-season

Opportunities for income and employment generation

Primary Processing Facility at Group Level:

We had created drying yards in 20 villages and provided the groups with equipments for quality and hygienic processing. This has enhanced the capacity of the producers and has helped the people to use the facilities. During the period around 220 quintals of turmeric was processed. Most of the processing activities were taken up to the month of march to june and after that it was reduced.  There is greater demand for more equipment, as the production capacity at the village level is very high. In some villages, individual farmers have purchased boiling vessels and chullas taking loans. We are also trying to manufacture the items locally to meet the demand. Storage at the group/village level, is a problem. The moisture level has been drastically controlled by proper drying and storage.

ONION STORAGE:

India is one of the largest producers of onion in the world second only to China, accounting for 16 per cent of world area and 10 per cent of production. In India, it is grown on 0.39 million hectares with production of 3.40 million tones of bulbs per annum (FAO, 1995). The current year’s production is estimated at 4.7 million tones. It is one of the most important vegetable crops of our country and forms a part of daily diet in almost all households.

Most of the farmers bring onion directly to the market after harvest, as proper storage facilities are not available with them. The present storage capacities are quite inadequate and most of the available units are traditional and unscientific. Fearing losses, farmers usually unload their entire stock within a month of harvest. As a result, during this period, prices rule very low due to glut situation. Thereafter, the rise in prices is quite rapid and sometimes wide fluctuations occur leading to dissatisfaction amongst the producers as well as consumers.

The onion bulbs are generally stored from May to November for a period of four to six months. However, 50-90 per cent storage losses are recorded depending upon genotype and storage conditions. The total storage losses are comprised of physiological loss in weight (PLW), i.e. moisture loss and shrinkage (30-40%), rotting (20-30%) and sprouting (20-40%). The PLW can be minimized by harvesting at right time, proper curing of onion bulbs and subsequent storage at desired temperature and humidity conditions. Generally, the rotting losses are at peak in initial months of storage, particularly in June and July, when high temperature coupled with high humidity result the losses. However, proper grading and selection of quality bulbs and good ventilation conditions can reduce the rotting. Sprouting losses are usually recorded at the end of storage period or when exposed to high temperature of humid air. Noticeable sprouting losses are observed because of storage of poor quality bulbs having less rest and dormant period and also having thick neck. Comparatively, more sprouting losses are recorded in dark red and white onion cultivars than in the light red onion cultivars.

Storage Technology and Costs:

For onion storage technology is either with natural ventilation. Onion storage in ventilation condition is quite satisfactory when the temperature is maintained between 250C to 300C with a relative humidity range of 65% to 70%. For a standard structure with 25 MT capacity, 45,000/- is the cost approved by banks and NABARD.

Onions are stored either loose or in bags. The beneficiaries will be advised to sort the onions prior to storage and thereafter at least once in thirty days to take out the rotten/infected onions in order to avoid further spread of diseases/losses. Generally, a loss of about 20-30% is there during a storage season in the form of weight loss of onions which can be controlled with proper care. However, the other types of losses can be controlled to a greater extent if the structure is designed to facilitate maximum natural ventilation through the stored onion and sorting is done at regular intervals.