Chapter 5 | Value Chain Analysis

81

Turmeric
Turmeric is the dried rhizome of Curcuma Longa L. which is used as a condiment,
flavouring and colouring agent, is a principal ingredient in the Indian kitchens
as curry powder. The turmeric derives its taste, aroma and colour from its active ingredient
‘curcumin’ which is the principal phenol responsible for the yellow colour and medicinal
characteristics of turmeric. The higher the curcumin content, the better the turmeric
variety.

Assam
Kamrup, Barpeta, Sonitpur, Nagaon, Baksa, Golaghat, Lakhimpur and Karbi Anglong are major
identified production clusters for Assam. Most of the farmers use locally grown varieties
which are not recommended by the Agriculture Department but give good yield.
™™ Production Practices
Aamda and Lakadang are the identified varieties grown by the farmers. A seed rate of
12 quintals per ha is used for planting which costs the farmers ` 25 per kg seed. The sowing
of the seeds is carried out in the months of March-April. Farmers either use their own seed
preserved during the last season or buy the seed rhizome from the market. About 300 labour
mandays are required for carrying out various farm operations.
As per the discussions with the farmers during FGDs, the following cost of production has
been estimated:

Figure 71: Production Cost of Turmeric in Assam

100000
90000
80000
70000
Cost in INR

60000
50000
40000
30000
20000
10000
0
Turmeric
Labour 45000
Irrigation 2200
Fertilizers 3700
Manures 6000
Seed/Planting Materials 30000
Total 86900

Source: ISAP analysis from farmers’ interaction

™™ Post-harvest Practices:
ƒƒ Harvesting: The harvesting begins in the month of November, which extends till
January. The yield is 6 -7 MT of rhizome per ha.
82 Value Chain Analysis of Select Crops in North Eastern States

ƒƒ Value Addition at Farm Level: Few farmers sell rhizomes after curing it.
ƒƒ Marketing & Logistics.
The farmers generally sell the rhizomes to the aggregator at the village level. The marketing
channel followed by the farmers is:
1. Farmers -------- Aggregators ---------- Wholesalers --------- Retailers -------- Consumers

Figure 72: Marketing Channel of Turmeric in Assam

At farm gate ` 0.8/kg

Farmers Aggregators Market in Guwahati

At the production level, due to insect pests and diseases, the crop loss is nearly 5 -6 percent
while during transportation, the loss is 1-2 percent.
Farmers sell the turmeric at field level to aggregators who further carry it to Guwahati market
by mini trucks and sell to wholesalers. It is supplied to other markets in Assam also from
Guwahati.

Table 48: Price Build-up from Farm Gate Boko to Guwahati

Price Build-up Amount (in `) Price Markup (` Per kg) % Contribution
Farm gate price 20.00 20.00 41%
Aggregator Margin @25% 5.00 25.00 10%
Loading/unloading 0.40 25.40 1%
Transportation 0.80 26.20 2%
Wastage@ 2% 0.52 26.72 1%
Wholesaler (@30%) 8.02 34.74 16%
Retailer (40%) 13.90 48.64 29%
Source: ISAP analysis from various stakeholders’ interaction

Meghalaya
The major production clusters that have been identified in Meghalaya are Jaintia Hills and
West Garo Hills. Lakadang is main popular variety, which is a much sought after variety by
the extraction industry due to its high curcumin content (<5.5%).
™™ Production Practices
The sowing of turmeric is carried out on beds on slopes. Usually farmers use their own seeds
(rhizomes) preserved from the previous season’s crop for cultivation purpose. The seed
rate varies from 0.8 to 1 MT per ha. For sowing, both the mother rhizomes and fingers are
used. Sowing in the region is carried out in the month of April-May. Farmers apply only FYM/
Vermicompost @5-8 MT per ha during the entire cropping season. No chemical fertilisers,
insecticides/pesticides or weedicides are applied by the farmers in the region. The crop is
monsoon-dependent. Weeding is mainly done manually by the farmers.
 Chapter 5 | Value Chain Analysis
83

About 200-250 labour mandays are required for the cultural operations from land preparation
to harvesting. The charges for labour are ` 200 per day for men labour and ` 100 per day for
women labour.
™™ Post Harvest Practices:
ƒƒ Harvesting: The harvesting starts in the month of December and extends
till March. The average yield of green turmeric in the region is 6-8 MT/ha.
The produce is packaged in 50 kg gunny bags. The cost of one gunny bag is
` 15-20 per bag.
ƒƒ Value Addition at Farm Level: Some quantity is sold in fresh form while majority
of the farmers carry out washing, drying and slicing of the rhizome. From
1 MT of fresh turmeric, only 150 to 200 kg of dry turmeric is obtained (recovery
percentage – 15 to 20 percent).
The selling price of fresh turmeric varies from ` 15-18 per kg, while dried rhizome sells
at a price of ` 150-180 per kg.
ƒƒ Marketing & Logistics: The fresh rhizomes are sold to middlemen or
aggregator at the village level itself while the dried and sliced rhizomes are
sold to the processor in nearby villages. The aggregator/middlemen take the
produce to the market; sell it to the wholesaler who further sells it to
the retailer. The logistics cost for transporting one 50 kg bag from village
to main market by jeep/bus varies from ` 30-40 depending upon the
distance. For dried form, the processors carry out the grinding and the
powdered spice is sold in the local market and distant markets of
Guwahati, Silchar, Kolkata and Bangladesh (through illegal trade practices) at
` 250-300 per kg.
There are negligible post-harvest losses due to the nature of the produce which is sold in the
dried form.

Figure 73: Marketing Channel of Turmeric in Meghalaya

` 0.60-0.80 per kg

Aggregators Markets in Shillong

Farmers

Markets in Shillong/
Processors Kolkata/Guwahati/
Silchar
84 Value Chain Analysis of Select Crops in North Eastern States

Table 49: Cost-economics of Turmeric Cultivation in Meghalaya

Sl. No. Particular Amount (in `)
1 Planting Material (0.8-1 MT/ha) 40,000
2 Manures (5-8 MT/ha) 12,000
3 Fertilisers & Pesticides 0
4 Irrigation 0
5 Labour (including family labour) 50,000
6 Total Production cost 102,000
7 Average production cost (` Per kg) 12.75
8 Yield (in MT/ha) 8
9 Average Selling price (` Per kg) 15 -18
10 Total income per ha (in `) 120,000-144,000
11 Net gain (` per ha) 18, 000-42,000
Source: ISAP analysis from farmers’ interaction

Table 50: Cost Build-up of Turmeric (1 kg) from Farm Gate to Consumers
Particular Amount Price Markup % Contribution
(in `) (` Per kg)
Production Cost 12.75 12.75
Average Selling of Farmers 18.00 18.00 45.45%
Carriage Cost (Gunny Bags ` 20 per 50 kg bag) 0.40 18.40 1.01%
Middlemen/Aggregator charges (10-15%) 2.76 21.16 6.97%
Transport to Main Market (` 30-40 per 50 kg 0.60 21.76 1.52%
gunny bag)
Wholesaler's margin (30% ) 6.53 28.29 16.48%
Retailer's Margin (40%) 11.32 39.60 28.57%
Source: ISAP analysis from various stakeholders’ interaction

Mizoram
In Mizoram, Reiek village in Mamit district is very famous for turmeric cultivation. Mamit
is the largest turmeric producing district in Mizoram. Other identified clusters are Saiha,
Champhai, Kolasib and Serchhip.
™™ Production Practices
The varieties used are Lakadong and RCT-I. The Horticulture Department is supplying the
RCT-I planting material (rhizomes) to few selected farmers. The seed rate used is 6-8 quintals
per ha which yields around 4-5 MT of finished product.
Sowing is done in the month of February and March. No fertiliser and other chemical use
have been noticed. Labourers are mainly family members. About 150-200 mandays per ha
are required for farm operations from field preparation to harvesting. The labour charges
are ` 200/manday for hired labour.
™™ Post-harvest Practices:
ƒƒ Harvesting: The crop is harvested from December to April; December and January
are the peak harvesting months. During the crop production and harvesting, the
losses due to shoot borer are nearly 10 percent. The selling price of the fresh
rhizomes is ` 15 per kg.
 Chapter 5 | Value Chain Analysis
85

ƒƒ Value Addition at Farm Level: Farmers do the cleaning, washing, curing and drying
after harvesting and then pack the rhizomes in plastic bags. The plastic bags with
small quantities of produce are carried on the roof of the passenger vehicles by
the farmers to the nearby city or town.
ƒƒ Marketing & Logistics: The transportation cost for transporting to a distance of
3-40 km is ` 30 per 30-40 kg plastic bag. Aggregators and traders carry full truck loads
of the cured and dried turmeric in Tata 407 which accommodates 2.5-3 MT, to Aizawl
market and other neighbouring markets in Assam. The logistics cost till Aizawl market
is ` 2500-3000 per truck load and up to Silchar it is ` 8000 per truck load. The losses
during transit range from 1-2 percent when carrying to Aizawl market and 3-4 percent
when carrying to Silchar market. The handling losses at the wholesaler’s and retailers’
level are approximately 1 percent.
Marketing channels:
1. Farmers-Middleman (village level)-Local wholesale markets in Mizoram-retailers-
consumers
2. Farmers-Local wholesale markets in Mizoram-retailers-consumers
3. Farmers-Traders/contractors (from neighbouring districts of Assam, Silchar, Karimganj
etc.)-wholesale markets-retailers-consumers

Figure 74: Marketing Channel of Turmeric in Mizoram

Aggregators
` 0.80-1.0 per kg

` 1 per kg Local markets in

Farmers
Aizawl

` 2.50-3 per kg

Markets in Silchar,
Contractors
Cachar etc.

Table 51: Price Build-up of Turmeric from Farm Gate to Aizawl Market (per piece)
Particular Amount (in `) Price Mark-up % Contribution
(` Per Piece)
Average selling price of farmers 15.00 15.00 42%
Aggregator Margin (@20%) 3.00 18.00 8%
Transport to Aizawl 1.00 19.00 3%
Cost of wastage (@ 1% till Main Market) 0.19 19.19 1%
Wholesaler's Margin @ 30% 5.76 24.95 16%
Wastage (@ 1% wholesale level) 0.25 25.20 1%
Retailer's Margin (@40%) 10.08 35.28 28%
Wastage (@ 1% retail level) 0.35 35.63 1%
Source: ISAP analysis from various stakeholders’ interaction
86 Value Chain Analysis of Select Crops in North Eastern States

Naga Chilli
The Naga Chilli is the traditional food item of the Naga community. It is believed to have
originated in Nagaland and the State Government has obtained GI rights for the product in
2008. It has a distinct taste and pungency and is used in many forms - fresh, dried, powdered
and pickled. Major identified clusters are Kohima, Peren and Dimapur. 

Nagaland
Naga Chillii is also known as ‘Raja Merja’ at local level. The identified major production clusters
are Kohima, Peren and Dimapur districts.
™™ Production Practices
The seed rate is 1 kg/ha. The farmers use the seeds
preserved from the last season’s crop. It is grown
as a rain-fed crop in all kind of soils from plains of
Dimapur to the high hills. In plains, the sowing of
the seed is carried out in August to October and
transplanting is done in September–November.
In the hills, the sowing time is February to March
and transplanting of seedlings is carried out from
March to May.
About 200-250 mandays are required for carrying
out the farm operations. Being a highly perishable
product, the crop loss varies from about 5-10 percent Manual Sorting & Grading of Naga Chilli
at the field level.
™™ Post-harvest Management
ƒƒ Harvesting: The chilli is ready for harvest within
75-90 days after sowing. The yield per ha of fresh chilli
is 2-2.5 MT. However, dry chilli fetches better price in
the market than fresh chilli, so the farmers prefer to
dry them before they sell it to the traders.
ƒƒ Value Addition at Farm Level: Most of the farmers have
installed indigenous drying units where the drying and
bulk packaging of the chilli is carried out.
ƒƒ Marketing & Logistics:
The following channels are followed for chilli marketing:
1. Farmer-aggregator-Wholesaler-Retailer-Consumer (Local Market)
2. Farmer/s-Trader/Contractor-Wholesaler (in Kolkata, Delhi, Mumbai, Bangalore etc.)-
Retailer-Consumer (Dry Chilli)
The farm gate price of dry chilli during lean season or during times of less production may
go up to ` 1500 per kg. Fresh chilli sells for ` 1 to ` 5 per piece in the retail market, while a
packet of five dry chilli pieces in a retail outlet in Dimapur was being sold at ` 50. Fresh chilli
is sold locally while dried chilli can be transported to distant places such as Kolkata, Delhi,
Mumbai and Bangalore.