SPICES BOARD INDIAPRESENTS

“THE EPRP PROJECT” RESTORY ON ORGANIC

EPVs IN INDIA

THE INITIATIVE AND THE MOTIVATION

►Spices Board of India wanted to introduce and

demonstrate ORGANIC SPICE FARMING FOR EXPORTS.

►Spice farming was not the mainstream mandate of the

Board.►Growing export potential and a workshop on EPVs (ITC December 1998) motivated the Board to take up this initiative.

► Project EMPOWERMENT OF RURAL COMMUNITIES TO EXPORT ORGANIC SPICES was presented to DM 2000 jointly by the Board and ITC.

► Awarded for implementation with an allocation of $ 250,000.

► A Pilot initiative – Export led Poverty Reduction Programme

The Objectives and the Route

►Promoting Rural Clusters of organic spice farms.

►Demonstrating Organic Systems to farmers groups.

►Assisting farmers groups in obtaining Organic

certification acceptable to International markets.

►Capacity building of FARMER GROUPS/NGO through

development of common facility centers for processing and

value addition.

►Handholding NGOs to graduate as an Exporter.

►Assisting the farmer groups/NGOs to Export the

organic products like Pepper, Ginger, Turmeric, Nutmeg,

Mace, Rosemary, Thyme, Oregano and Value added

products from these spices.

PROJECT BENEFICIARIES DIRECT

NGO partners, PDS, WSSS, HOPE,Samanwita.

Rural Spice Farmers in the four project sites - 335 families of which 135 are tribals.

Also an awareness group of 1400 farmers around the project site. Farmer Groups in one site (Nilgiris) 90% women and in other sites 40 to 50% women.

INDIRECT

Indian Spices Export Sector – getting introduced as a source for Certified Organic Spices.

Government Agencies introduced to a model for replication in other similar sectors.

Spice Consumers – getting chemical free – natural – good quality spices.

Demonstration of Environment friendly export related activity.

The Strategy

► Ensures export oriented production

activity.

►Organic farming enriches soil fertility – Hence

sustainability, disease resistance – Long term

improved productivity.

►Premium price (now 25% - 75%) motivation to farmer.

Even though niche market growing fast (10 to 50%).

►Introduce small scale farming in rural area more suited

for B.P.L. sector in LDCs and Developing countries.

►Needs personal care and integrity of the producer to

ensure brand loyalty by the consumer.

►Even after the project is completed private exporters

engage them in contract farming. This has already

started.

►Being niche, needing personal care and quality

assurance.

Not very much suited for large scale production.

Major Activities/Achievements

►Demonstrated organic farming practices.

►Trained in preparation of Organic inputs like vermi

compost, botanical and herbal pesticides/fungicides.

►Members of SHGs trained in gainful employment and

introduced to government funded schemes (floriculture,

medicinal plants collection, animal husbandry).

►NGOs and farmer group leaders trained in Value addition

techniques, packaging, labeling, storage etc.

► Training in development of SMEs, Export finance, export procedures and documentation, export costing, primary value addition etc.

► General topics of value – Gender in development,

mother and child care, de-addiction, community

sanitation, small savings.

► Trained in Documentation for organic certification,

periodic reporting, communication – Export

procedures documentation, Trade Fair participation

etc.

► All the 4 NGOs provided with a P.C. with necessary tailor made software ● for documentation of organic certification ● for periodic reporting (quarterly) of project activities ● for maintaining farmers training modules

►A website developed and domain hosted for the NGOs.

Highlights activities – about the farmer groups and DM

project activities.

Also a market promotion tool.

►The farms have now been certified organic by IMO.

►A study of organic markets in Germany, Netherlands,

Belgium and Switzerland done.

Findings of the study disseminated to all stake holders.

►Representatives of all the 4 NGOs participated in

the Bio-fach , 2002, 2003, and 2004 at Nurnberg

Germany.

►A Herbarium established in HOPE, Nilgiris

►A workshop organised for NGO’s and extension officials to educate on preparation of a bankable project.

Major Tasks – Projected and Achieved

Projected Achieved

1. SHGs to cover 350 families and 764 acres

As of March 2004 2160 families and 4660 acres covered.

2. 6 Master Trainings (one day) 6 Master Training programmes by November 2002, One more in June 2003. (Two programmes were 2 day duration).3 more specific need based trainings/ workshops. Two of them 1 week and one of 2 days.

3. 36 Group Trainings 36 trainings done from 2000 to 2002 itself. 16 more trainings were done in 2003 and 2004 (March).

4. Infrastructure for Market Promotion and Project Monitoring

Project Monitoring Software development for all NGOs. Website developed and regularly updated.-Basic processing facilities for value addition developed.\-Quality Testing Lab for basic parameters established-Branded consumer packs developed by two NGOs.

5. Group certification for Organic Farms 764 acres.

As of March 2004, area covered is 4660 acres of which 3500 acres certified. Balance 1160 under conversion. Will be certified by April 2005.Internal Control Systems developed by the NGOs.Products covered beyond spices – coconut, banana, jack fruit and vegetables. Sustainability through Spices Board Scheme of 50% grant in aid for certification till 2007.

6. Market Study – EuropeFact Finding Mission of Organic Sector in Europe NGO Participation in Bio-fach 2002

Market Study accomplished Mission accomplishedNGO participation in Biofach 2002, 2003 & 2004.Exclusive organic stall for the NGOs in World Spice Congress 2002 & 2004. (more than 125 delegates from 40 plus countries.Produced the Project FilmEstablished Herbarium in HOPE, Nilgiris.Project Manager attended Executive Forum – Cancun September 2003.Many Food writers from abroad visited the project sites in the last 3 years.

Organic Farming as a system is fast growing in the Agri Sector in India, especially Spice sector.

Understand several LDCs and developing countries desire replication.

► Export of organic Spices and Spice Products from India improving

Year Qty. in MT Value in US$

2000 38 0.29 million

2001 97 0.57 million

2002 102 0.53 million

2003 220 1.13 million

MAJOR SPICES EXPORTED

Black Pepper White Pepper Ginger Turmeric Clove Nutmeg Rosemary Thyme Vanilla Cardamom

► Components of the Project – Organic production, Integrated Pest Management, Contract farming, Value addition at farm level are activities easily replicable.

► IPM and Organic cultivation reduces cost of production, ensures healthy food, protects environment – agriculture sustainable.

► Possible sectors for replication – Cashew cultivation and processing Coir and other natural fibre, fisheries etc.

REPLICABILITY

Replication is easily possible when 1. Product quality is most important factor.

2. A human touch and skill more needed than machine precision.

3. When processing activity not easily amenable for machine handling.

4. When consumer expects quality assurance based on personal integrity of the producer.

SPICES BOARD INDIA

AND THE BENIFICIARY GROUPS

THANK

ITC,GENEVA AND THE WORLD BANK