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Integration of Guar Supply Chain: Issues and Options

Integration of Guar Supply Chain: Issues and Options. Purushottam Sharma Senior Scientist (Ag. Econ.), Directorate of Soybean Research, Indore purushottamji@gmail.com. Next 15 minutes on. Guar Supply Chain Issues and options in Supply Chain Pre-production Post- production

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Integration of Guar Supply Chain: Issues and Options

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  1. Integration of Guar Supply Chain: Issues and Options Purushottam Sharma Senior Scientist (Ag. Econ.), Directorate of Soybean Research, Indore purushottamji@gmail.com NCDEX Guar International 2014 at Jaipur on 11.10.2014

  2. Next 15 minutes on .... • Guar Supply Chain • Issues and options in Supply Chain • Pre-production • Post- production • Policy Related Issues • Strategies to integrate supply chain and boost guar gum export

  3. Need for Integrated Supply Network for Agri-Produce High delivery costs, caused primarily by a fragmented supply chain, inefficient logistics, together with poor standards are the common features of agricultural marketing system in the developing countries. In the present era of globalization & privatization • Competition no longer between firms but between supply chains • Efficiencies of scale and scope the “buzzword” • Leads to shifts in the risk profile • Benefit to farmers as upgrading as chain actor, adding value through vertical integration and developing partnerships/ ownerships, feedback to farmers to ‘grow what sells’

  4. An integrated supply chain provides access to knowledge, technology, finance, markets: leading to shared benefits Input Infrastructure Production and Harvesting Processing Infrastructure Distribution and Export Market segmentation, consumers demand & low cost strategy -driving factors for supply chain collaboration Integrated Agri Supply Chain: Concept

  5. Activity Chain Actors Support Input Supply Res. Inst./Univ. - variety?? • seed?? • - agro technology • - knowledge Dealer Network FIG/ Producer Company/ Contract Farming !!! Retailers Production Farmers Guar Supply Chain: Pre-production Fertilizers Pesticides Inoculants Seed

  6. Pre-Production: Issues and Options

  7. India’s share in total import of importing countries

  8. Improved Guar Production Technology: Farmers knowledge Source: Singh et. al. 2011

  9. Dependence of Guar Yield on Rainfall Rajasthan

  10. Guar area under diff yield levels in Rajasthan

  11. Low seed replacement rate

  12. Varieties and Seed Source: DAC, MoA, GOI

  13. Potential yield of Guar Yield Gap Analysis and Expected Production Average yield for the period 2004-2008

  14. Chain Actors Activity Support Farmers - APMC - AGMARKNET - News paper - TV/ radio - University Aggregation Wholesale Village Trader Commission Agent Contract Farming Wholesaler Farmer Groups/ Coop Processor (Split/ Powder) Guar Supply Chain: Post-Production Animal Feed (2%-5%)

  15. Post-Production: Issues and Options

  16. Pre-Production: Issues and Options • Agricultural Produce Market Regulation Act amended to include provisions for • Contract farming • Direct marketing • e-trading • Private markets

  17. Price Risk: Management • Commodity futures as a platform for minimising price risk • Guar spot price volatility decreased post-futures (Sen Committee Report, 2008) • Awareness is required • FIG/ Farmer Producer Companies can help farmers Source: Sharma, 2011 & Yadav, et. al., 2013

  18. Activity Support Chain Actors Processor • R&D • Processing • Products - Market intelligence Processing Splits Powder Churi/ Korma Guar Supply Chain: Post-Processing Domestic Industries Trader/ Wholesaler Animal Feed Company Exporter • R&D • Transport • Containers • Testing • Export Support Processing/ Export Retailer Animal Feed Export Farmers/ Dairy Owners

  19. India’s share in total import of importing countries Q= Share in Import Quantity (%), V= Value share (%)

  20. India’s export mix and price relation

  21. India’s share in total import of importing countries

  22. India’s share in total import of importing countries

  23. Enabling Factors of Guar Supply Chain Monsoon Logistics management and efficiency Availability, price and quality of seed, inputs Key Enabling Factors of Guar Supply Chain Processor- Ability to process and market APMC (Mandi) Policy and regulation effectiveness Research Information flow

  24. The Road Ahead… • Develop a R&D centre as the centre of excellence for Guar: • Collection and dissemination of information, • Promoting usage of Guar and its derivatives, • Development of processing technology according to changing market demand and food safety concerns • Development of value added products. • Have R&D facilities and pilot plant/ machinery for trial production of value added derivatives of Guar. • Have facilities and authority for quality certification. • Capacity building of small and medium enterprises in guar processing on the lines of growing food safety concerns.

  25. Further actions • Industry Association: • How you can support farmers to stabilize yield, achieve higher productivity, minimize post-production costs, and sustainability. • Access to processing technology: industry specific products • Research – Industry collaboration for higher and sustainable productivity and for processing

  26. Guar Greatest Untapped Agricultural Resource

  27. Thank you

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