Maximizing farm income and other livelihood opportunities through introduction of high Value Minor Crops in district Swat, Pakistan

Dr. Hassan Sher

University of Swat

Interim Report (July 2012 to December 2012)

INTRODUCTION Has the representation of different agro-ecological units (Favorable Climate

Exist)– These have binding forces for the economy of Pakistan.

About 90% of the people depend on agricultural and forest products for their livelihood, employ more number of human resources than any other profession in district Swat. NR contribution is 35% in GDP of Pakistan.

Traditionally the area has agro-pastoral based economy. (For the first time, this project will aim to diversify the economy by value addition and providing alternate means of livelihood through farm maximization. This will further contribute to sustainability of livelihood)

Significant number (50000 families) of the population engaged in the trade of HVCs including MAPs from the wild. They collect 5000 tons of different MAPs and exporting these to national and international markets.

Medicinal plants collectors include womenfolk (48.26%), men folk (27.0%) and children (24.74%)

Pakistan as a whole export MAPs of 10.45 million US $ Contribution of District Swat 70 %

Pakistan Import HVC-MAPs of 135Million US$--Import its own exported plants materials.

Pakistan has about 50,000 registered practitioners of traditional medicines known as tibb-e-unani and majority of the population, especially in district Swat, is getting health care by tabbibs.

60% of the population used herbal medicines prescribed by traditional practitioners

 

OBJECTIVEEvaluate opportunities to maximize farm income through introduction of high value minor crops including medicinal plants in the war-stricken district Swat of Pakistan, directly supporting new Framework for Economic Growth.

HYPOTHESIS

Establishment of ex-situ experimental production plots will lead to the development of skills in horticultural production and marketing among people in the valley and help rebuild commercial connections between this region and the rest of Pakistan.

Location of project sites on the Map

Overview of Implementation Process and Progress Update. The project is implemented by University of Swat, covering a range of

interventions:

local awareness campaigns, capacity-building training and community mobilization and Formation of MAPs Producer Associations.

3 demo- plots of the selected high value minor crops including MAPs with farmers in three villages viz: Khwazakhela, Miandam and Behrain were established.

In these villages three Village Development Committees were formed.

Economic analysis/feasibility and evaluation of the adoption by farmers of improved agricultural practices will be assessed in May,2013.

Developing reliable marketing channels. Which represent the prime ‘engines of growth’ for the local economy. These strategic economic development areas are entirely based upon, and closely interlinked, with the management and conservation practices of HVCs including MAPs, and intact landscapes.

 

Social/Community mobilizationThe project activities were initiated in July, 2012 and consultative meetings were held involving all sectors of the community including forest owners and non-owners, MAPs collectors, farmers and representative of Govt: departments.

Community/social mobilization began in selected three villages and accordingly 3 Village Development Committees (VDCs) i.e one per village were formed for sustainable use of MAPs and introduction of other HVCs. The VDCs representatives participate on behalf of their respective villages/communities and identify participants for trainings, exposure visits and other activities of the project.

The project signed MoUs with 3 VDCs for the sustainable harvesting of MP’s from the wild and establishment of demo-plots.

Establishment of Three Demonstration Plots

Three demo-plots were established in the project areas representing 3 different agro-climatic zones.

Three MoUs have been signed between University of Swat and VDCs in the last week of September, 2012, according to which the community cultivate 19 commercially important HVCs including MAP’s on their farms on an areas of 100x72 Sq.ft .  

During the establishment of the demo-plots, 30 community activists were trained regarding nursery layout, transplanting and cultivation of HVCs and MAPs.

The community has taken keen interest and requested the project to provide them technical support and training regarding nursery raising.

  Some members of the community have shown interest on the

cultivation of some HVCs on commercial scale– if these are economically profitable.

It will revolutionized agri-farming, where farmer communities are unaware of HVCs, and had been earning nominal returns from traditional agricultural crops.

Have great impact in term of diversification of existing production activities of farmer communities and will substantially enhance farmer incomes, employment generation and poverty reduction in the target areas.

  Although it is not feasible in view of the short duration of the project, The

project, therefore, recommend one year extension in the project duration with increase funding to this activity and allied component of the project.

Economic Analysis and Risk Analysis

Suitability, yield and economic analysis/ feasibility of selected HVCs will be worked out in collaboration with Agricultural Economist.

Economic analysis will be carried out in the month of April and May, 2013 i.e after harvesting the crops.

The following procedure will be used for economic analysis.

B/C RATIO Type of data collected will be analyzed with the help of a

formula:

B/C ratio= Total income on their selling – Total expenditure on their cultivation.

Data will be analyzed by using ANOVA and by MSTAT-C program. Means will be compared using Least Significant Difference (LSD) test at 5 % probability level (Steel and Torrie, 1980; Sher et al,2010).

Economic analyses of yield data will be carried out to determine the net income for each HVCs, using prevailing market rates for land rent, costs of production and prices of crops. The most widely cultivated crops, wheat and maize among cereals and radish, peas and turnip among cash crops, will be included for comparison.

Risk analysis will also be worked out(May-2013)

Plot of Nigella Sativa (Kulwanji)

Production of Agriculture Foods

Increase of Agriculture lands

Productivity

Increase of Water Productivity

Selection of high Productivity crops steady to stress and

Climate change

Marketing Support Linkages and Partnership Development

The project explored easy and reliable marketing channels for future self management and independency. In this connection, partnership and links of the 3 VDCs with relevant line departments like Agriculture and Forest Departments were developed.

Secondly, these 3 VDCs were linked with “Qarshi” Industry and an MOUs under the umbrella of University of Swat was succeeded between VDCs and Qarshi” Industry.

Under the MOU Qarshi Industry is bound to purchase sustainably harvested MAPs from the wild and cultivated filed.  The quality of collected HVCs and MAPs, if encouraging will pay 30% higher rate than market prices.

Qarshi industry also announced further 15% increase as conservation price for the sustainably harvested MAPs from the wild.

One of the major constraint in MAPs and some HVCs is the non availability of assured market.

My this endeavor has ensured surety of the market for HVCs and MAPs and it has also enhanced bargaining power of the farmers community to negotiate the prices of their products.

Exposure Visit Two exposure visits were planned 1) Qarshi Industry, 2) Akbari

Mandi Lahore.

Visit to Qarshi Industry was organized and total number of 30 individuals from 3 villages participated this exposure visits.

It was important that participants understood pre and post-harvest treatment and processing techniques.

The second visit to Akbari Mandi Lahore will be made in the month of February, 2013.

Exposure Visit, Capacity building/training, Marketing Support Linkages and Partnership Development

Establishment of Community Managed “MAP Collection and Buying Center

Community managed “MAP Collection and Buying Center”(Purchase Depo) at Miandam.

MAP collectors transports the MAP products collected to this center and the bulking, packaging and labeling is carried out to facilitate buyers coming to this center for bulk purchases.

Sales income is then distributed among MAP collectors in accordance with laid down procedures based on products and weight provided to the collection center.

The farmers have realized credible returns and some have reported an average increase of 3 times in their revenue generated from the sale of few high value MAP species after switching their business to this center.

Miandam become the hubs of significant economic activities with multi-dimensional impact on the economic development of the local areas.

However, certification and registration of the products is needed. Therefore, the project needs extension of one year with increase of funding for this activity.

Capacity building/training Initially the farmers are poorly organized, untrained in agriculture

practices of HVCs and not aware pre-post-harvest treatment of plant materials.

Have little knowledge of the market and have poor negotiation power for fixing the prices for their plant materials.

Three capacity building training workshops each one per village for a total

of 150 local commercial collectors and farmers (50 from each village). Subject covered include cultivation, transplantation, collection, drying, packing and marketing. The trained community members further extend the knowledge to fellow farmers in the area.

The capacity building training workshop produces skill farmers in the area.

These capacity building training programs reduces the expertise gap and also raise employment opportunity to the professional trained farmers and MAPs collectors.

 

Kitchen Gardening Concept of kitchen gardening is poorly developed in the area. Seeds of different vegetables were distributed among some members of

the farmers community in three villages.

This activity not only ensure the supply of fresh vegetable but also ensure the saving of money especially at women level

Composting Farmers currently using ‘fresh manure’ to their agri- fields. Unawareness

regarding the value of farm manure.

In this context, the project has imparted one day capacity building training workshop to 30 farmers of the three villages regarding the importance and preparation composting.

  The response from community side was encouraging and it will not only

ensure sustainable agriculture and organic farming but will also reduce expenses made on the excessive and unscientific use of synthetic fertilizers like Urea and DAP.

 

Impact of The project  The present project has great socio-economic impact on the area

and the following social and economic impacts were analyzed since the implementation of the project.

Community mobilization process of the current project provided opportunity for developing relationship & networking among stake holders.

Building social capital in the area. Which eventually contributing in positive attitudinal change in terms of tolerance & tranquility among socio-economic & ethnical groups for the achievement of mutually beneficial goals.

These individuals will further contribute in building livelihood assets through various projects in future.

   

Economic impact of the present project can best be assessed by examining changes in incomes and poverty in the communities and by calculating rates of return for investments made by the farmers communities on cultivation. But to do this requires extensive data collected over long periods of time.

  Capacity building training on pre- post-harvest treatment

of MAPs and training best horticulture practices of HVCs and cooperative sale of MAPs provided an income opportunity at the door step of the families. These activities will contribute in improved production of HVCs. Moreover, This intervention is being carried out mostly by low income and poor people at various locations of the 3-villages. This intervention has good effect on the poor people in terms of its nutrition (food security) and economic value.

  Detail impact of the present project required

comprehensive data and will be analysed by the end of the project

Name of HVCs including MAPs Recommended for Cultivation by Farmers in District Swat.

Bunium persicumTrachyspermum ammi[=Carumcopticum]

Morchella esculenta

Colchicum luteum Gladiolus Morchella conica

Valeriana jatamansii Linum usitatissimum Bergenia ciliata

Podophyllumhexandrum

Nigella sativaAconitum leave

Bistorta amplexicaule Crocus sativus A.violaceum

Viola serpens Plantage ovata/majorPaeonia emodi

Atropaa ccumonicata/belladonna

Berberis lyceum Commiphora mukul

  Items Unit Qty Rate/Unit TotalA Capital cost:        A.1 Training equipment   LS 20000 20000  Sub Total A       20000B Operational cost        B.2 Utilities

Month 12 4000 48000

B.3  Fuel for Vehicle Month 12 15000 180000

  Sub Total B       228000C Programme Cost        C.1 Formation of 03 VOs (male) No 3 20000 60000C.2 Formation of WO (Female) No 1 15000 15000C.6 Awareness campaigns No 2 75000 75000C.7 Training extension workers 02 days training 30

participants Head 30 6000 180000

C.8 Demo. Plots(medical, aromatic plants. (one Plot per site) No 3 25000 75000

C.9 Small scale processing unit for finishing products No 1 400000 400000

C.11 Publication of Broucher/articles No 2000 100 140000  Sub Total C       850000D Salary of PI and Research Assistant

02 12 months

16000/PM(PI-10000/PM

and RA6000/PM)

192000

  Sub Total D       192000E Consumable stores        E.3 Seeds/germplasm LS 1 NA NAE.9 Other Misc. Expenditure LS 1 20000 20000  Sub Total E       20000  Gran Total

      13,10,000

Revised Project Budget for One Year Extension (i.e 1st July 2013-June, 2014):

Way ForwardThe way forward of the present project showed that the most promising opportunities for the development of MAPs for rural poverty reduction lie in the following:  Maximizing farm income through introduction of HVCs

including MAPs for rural economy development need concerted effort and time. Based on the experience of this project, it is recommended that at least one year extension with increase budget as per the revised project budget and work plan till June, 2014 should be given for the successful completion of this project.

Till December,2012 the project has mainly focused on capacity-building training on various horticultural aspect of MAPs, i.e. basic skills in processing, market exposure and market linkages and awareness-raising on natural resource conservation in selected villages.

 

Emerging trends indicate the importance of MAPs cultivation. However, the general practice is high dependence on harvest from the wild. Therefore, Ex-situ Cultivation of high value MAPs must be encouraged and it will not only provide an additional source of income for villagers, but will also contribute to mitigating pressure on endangered resources. Moreover, as opposed to collection from the natural habitat, production of MAPs through cultivation ensures determining sustained annual yields. This facilitates long-term agreements between producers and buyers, particularly the herbal industries.

Value chain analysis will be made to improve growth and competitiveness of the products develops from MAPS. This project will facilitate local entrepreneurs, farmer/producer groups and cooperatives to identify the enterprise options. Cooperatives and other micro-enterprise will add value on these natural products and market the value added products in more efficient and responsible ways.

The trade of MAPs involves a complex group of stakeholders. The distribution of benefits in the MAPs trade is inequitable. The trade of MAPs is informal, uncoordinated and mostly unregulated. Secondly, the gap between production and supply is widening exerting additional pressure on the resource to meet the market demand. Therefore, market assessment studies on supply and demand of MAPs are necessary. These studies must be designed to study the product flow from the source to the end market analysis.

The important way forward is that HVCs provided catalyst for initiating economic development for poverty alleviation, enhancing food security and stimulating growth in the area. It enhances the possibility to establish an integrated production system using a minimum of chemical inputs and using local inputs, such as manure, compost and mulch.

ThankYOU

hassan.botany@gmail.comhassansher_2000@yahoo.com