Innovation in Improvement of Value Chain on Ginger and Ginger Products

Ashok Kumar Singha1, Padma Keshari Sahoo2 and Saroj Kumar Nayak3
1- Managing Director, 2- Consultant, 3- Associate Vice-President, CTRAN Consulting Ltd, Bhubaneswar

Introduction

Ginger (Zingiber officinale) is an important spice crop originated in India and cultivated almost in all the
states. India is the largest producer, consumer, and exporter of spices and earns around Rs. 5560.50
(2009-10) crores from spice export. There is a growing trend towards the trade of processed spices, which
has opened new business opportunities for the food and extraction industries in international markets.
Ginger has several medicinal and pharmacological properties and hence finds position in the preparation
of number of medicines for both animal as well as human beings.

Area wise Orissa is the second largest producer of ginger in the country, which contributes around 6 to
6.5% of the total production of the country. A large tract in the tribal districts i.e. Koraput, Kandhamal,
and Kalahandi of the state is dominating area in ginger cultivation in the state. The major constraints in
ginger cultivation, production and value addition include biotic and abiotic stresses, genetic erosion, poor
quality planting material, post-harvest losses, lack of well-netted value chain, and lack of market support

Rationale of the project

Owing to the fact that the dominance of ginger cultivation in the tribal tract of Orissa, where technology
penetration is minimal, and the magnitude of loss is quite high. Lack of post harvest processing
technology is the main hurdle in fetching good price for the produce. It was found that at the primary
producer level, value addition is almost absent. Among other factors, lack of suitable storage methods at
the farmer’s end further aggravate the situation. Due to high water content in ginger, introduction of the
post harvest technology emerged as the critical area of intervention for better shelf life, improved
acceptability and increased return for the farmers. Moreover, the resource poor and unorganized farmers
are prone to exploitation by the middlemen and Sahukars. Keeping all these problems in focus it was
decided to formulate a well organized set of intervention to bring in an improvement in the existing value
chain of ginger and ginger products where the farmers can be promoted to a higher level than being the
mere primary producer.

Background Information

The project is being implemented in Daringbadi of Kandhamal district and Pottangi of Koraput district
taking hundred farmers at each site. The socio-economic analysis of the beneficiaries states that major
source of income is agriculture (75.8%) followed by income from livestock (18.2%). The average land
holding size is 1.31 ha with cropping intensity of 131%. Out of the total land, 19.6% of net cultivated area
is irrigated. Prior to the implementation of the project, the yield of ginger was limited to 13.76 qtl/ac in
Daringbadi and 19.25 qtl/ac in Pottangi. As far as processing of the raw ginger is concerned, around 39%
in Daringbadi and 62% at Pottangi is primary processed like drying for preparation of Sunthi. The product
disposal rate was limited to 52%. In total 200 farmers (100 at each site) have been taken up for direct
inclusion under the scope of the project. Of the total farmers, 97% belong to SC/ST category and around
12% are female farmers.
Approach and Methodology

A detailed baseline study was conducted to assess the constraints in the existing value chain of ginger in
Kandhamal and Koraput. It was found that the existing value chain has limited players like the primary
producers, middlemen/ Sahukars and local mandi owners. A market survey was conducted to identify the
important markets, their price fluctuation, key industry and export houses, their demand, acceptability and
scope for new products, their quality standard, scope for organic and carbon neutral ginger or ginger
based products etc. Then a set of intervention was formulated in a consortium mode to improvise the
existing value chain and linking of different institutions having expertise in different core areas like
implementation, research and product development, academic excellence in developing improved
varieties and their standard package of practices, and monitoring and evaluation of projects.

Before recommending an elite variety, a research report on variety characteristics and its value addition
benefits was developed to ascertain the industry viability of the concept. The characteristic study was
done with the help of Natural Remedy Private Limited (NRPL), Bangalore. Hence, it was decided to take
up Suprabha variety in the farmers’ field. The farmers were selected based on different parameters like
their experience in ginger cultivation and socio-economic condition. A series of training programmes
were conducted for transfer of knowledge on ginger cultivation and benefits of converging scientific
approach in traditional mode of cultivation. Ginger being a nutrient exhaustive and long duration crop
(220-240 days), regular field visits, and in situ advisory services were provided by the subject matter
specialists. Prior to the project interventions, the farmers of Kandhamal were fed up with ginger
cultivation due to frequent loss by soft rhizome disease. The concept of raised bed cultivation as done in
Pottangi area was introduced to tackle the situation. To make this effective, the farmers of Daringbadi
were taken for an exposure visit to Pottangi.

At both the site, farmers were advised to take up Suprabha variety in scientific approach. To ensure
availability of elite planting materials to the farmers, planting material was procured through OUAT and
the filed NGO partners at both the site. All the farmers were provided with fifty kilograms of planting
materials. To address the prevailing domination of soft rhizome and other seed- borne diseases, the
farmers were advised for seed treatment and use of neem cake in the field.

To bring out the farmers’ from the vicious cycle of Sahukars and Middlemen, it was decide to organize
the farmers in form of cooperatives and necessary steps were taken for registering the cooperatives under
Orissa Self- help Cooperative Act, 2001. In this regard, a series of village level meetings and facilitation
workshops were conducted to promote democratic approach of institution building.

To promote the farmers to a higher level in value chain, it was decided to establish two primary
processing centers one at each site. The processing centers will have facilities required for the primary
processing of ginger like washing and cleaning, peeling, drying, grinding, flaking and packaging.

Critical Interventions and their benefits

The set of critical interventions have resulted in remarkable impact in the project area. The promotion of
elite planting material like Suprabha has increased the production to 34.54 qtl/ acre from 17 qtl/acre. The
promotion of raised bed cultivation method has reduced the rotting of ginger at Daringbadi which was a
frequent phenomenon and the use of neem cake has drastically reduced the outbreak of soft rhizome
disease and hence increased return for the farmers. Similarly, training and capacity building of farmers
has helped in terms of technology transfer and adoption as well as group formation for collective benefit.
Research and development on ginger by NRPL and OUAT has paved the way for advanced products
having international acceptance.

Income Generation and Social Benefit

In the first year of project intervention, the per kg increased return was in the tune of Rs 3/- due to
collective marketing. Cultivation of one acre of ginger generates 230 person- days. This comes out to be
Rs 23,000/- per acre (@ Rs 100/- per person per day). Hence, the pilot intervention has a potential to
generate around 6670 person days at both the sites. In addition to these, the primary processing centers
will generate employment opportunity for at least 25 people @ 150 days/ annum. The intervention has
empowered the tribal farmers including women in many aspects like free from the Sahukars and
middlemen, increased household level income and identity and dignity in the form of membership of a
self- help cooperative. Again, procurement of ginger by KASAM for its processing center at Bandgarh,
has eased the marketing of produce as well as minimized the post harvest losses due to lack of proper
storage facility at ground level.

Carbon Emission Reduction Study

The concept of carbon neutral products at international markets is in a growing trend. In order to give
advantage to the products, a carbon emission study was conducted at both the sites as per the IPCC
guideline and necessary interventions for reducing carbon emission has been formulated which will be
implemented from next year. The total emission was divided into two categories like direct and indirect
emission, which were compared with organic and inorganic best management practices and scope of
benefits. Direct emissions include emissions from synthetic nitrogen and organic nitrogen applied where
as the indirect emissions include the emissions during the manufacture of different agricultural inputs.

From the analysis, it was found that the total direct emissions in the production of ginger in Kandhamal
accounted to be 0.1539 kg CO 2/ kg of ginger, whereas the indirect emissions accounted to be 0.1145 kg
CO2/ kg of fresh ginger, thereby making a total of 0.2684 kg CO 2/ kg of fresh ginger. The total direct and
indirect emissions in the production of ginger in Koraput were estimated to be 0.3065 and 0.0245 kg CO 2/
kg of fresh ginger, respectively, thereby making a total of 0.3310 kg CO 2/ kg of fresh ginger. Similarly,
the total direct emissions in the production of ginger using organic best practices was calculated to be kg
CO2/ kg of fresh ginger and no indirect emissions were estimated during the process. Using inorganic best
practices the values for direct and indirect emissions in the production process were estimated to be
0.1577 and 0.0248 kg CO2/ kg of fresh ginger, respectively, thereby making a total of 0.1912 kg CO 2/ kg
of fresh ginger.

Scalability and Sustainability

Though only 200 farmers are being covered under the provisions of the project, around 440 farmers have
been trained on standard package of practices in first year. Since the technical interventions are very
economic in nature and need no exotic inputs, horizontal upscaling of the concept has been possible in the
way that this year (second year of intervention) many adjacent farmers (around 50 at each sites, apart
from the 100 direct project related farmers) have adopted the technologies like raised bed cultivation and
use of neem cake for production augmentation and this trend is expected to grow in coming days.
The consolidation process of the cooperatives in terms of management of processing centers and sale of
produces through well-developed network of marketing will ensure better price and improved product
disposal rate, which will act as the forward force for ginger cultivation. Moreover, the augmentation in
production and increased profit margin for the primary producers by abolishing the concept of middleman
is another reason for sustainability.
Moreover, NRPL, one of the consortium partners which is also an industry is quite satisfied with the
quality parameters of the ginger being grown in the project area and has already agreed to buyback
around 30MT for development of high end products like ginger oil and gingerols etc.

Products Developed

The lab scale products like “NR Ginger” for cholesterol management, >20% and >30% Gingerols- water
soluble ginger powder which helps in improving the digestion process, protects against nausea and
supports good heart health have been developed by NRPL. At OUAT laboratory, the products like
“Ginger Leather”, “Ginger RTS”, “Ginger Candy”, “Ginger Syrup”, “Ginger Flakes” and “Ginger
Powder” etc have been developed and in the process of process of product registration.

Conclusions and Scope for Future works

Funding through NAIP and the implementation of the project in consortium mode has successfully
brought back the ginger cultivation on track by addressing the field level problems as well as paving the
way for development of value added products for increasing profit margin at all stages.
Through systematic approach in carbon emission reduction and by adopting organic mode in Kandhamal,
the profit margin can be almost doubled where as in Koraput, by adopting best inorganic method, the
profit margin can be increased by 40% through proper certification, marketing strategy and negotiations.
As far as the primary processing centers are concerned, in due course of time, the selected trained farmers
will take up operation and maintenance of the center and will add on other facilities for advanced product
development.

Acknowledgement

The project is being implemented with the financial assistance under National Agriculture Innovation
Project (NAIP) of Indian Council of Agriculture and Research, Govt. of India, in consortium mode with
Orissa University of Agriculture and Technology as the lead centre along with CTRAN Consulting,
Bhubaneswar, Natural Remedy Private Limited, Bangalore, KASAM, Kandhamal and IAEET, Koraput as
other consortium members.