Parameters For Hemp Cultivation 3hh5z
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Chapter 1: INTRODUCTION For an agro processing unit to run successfully, it must operate throughout the year. To achieve this, there must be a constant source of raw material (industrial hemp). Working on the assumption that the climatic and soil fertility rate are equitable in all states, I have narrowed down on a few straight-forward/obvious parameters as well as some non-obvious but interesting parameters.
Chapter 2: PARAMETERS
2.1: Awareness/Education Hemp is lacking the attention it needs by growers. The facilitation of cultivation and processing of hemp will become many folds easier in locations where its awareness exists. Since awareness programmes are limited in this field, one approach could be to identify areas where there are existing programmes and incorporate the hemp approach within them. Andhra Pradesh, Karnataka, Himachal Pradesh, Chandigarh, Jharkhand, Kerala and West Bengal have active training programmes, aimed at improving farming techniques and incorporating modern practices. Srijan (http://srijanindia.org/) is one such NGO that conducts widespread programmes for farmers within the country and is currently active in
Odisha: Anugul Chhattisgarh: Koriya Karnataka: Mundgod, Haveri Rajasthan: Bundi, Duni, Pratapgarh, Pali, Newai Madhya Pradesh: Jaisinagar, Anuppur, Jatara, Chhindwara
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.2: Cultivation Method It is imperative to make sure that the agro processing unit receives hemp throughout the year for it to have continuous operations. Hemp is best grown as a rotational crop. There are a number of factors that must be considered when planning a crop rotation. A good crop rotation requires the weighing of fixed as well as fluctuating production circumstances like: market, farm size, labour supply, climate, soil type etc. The hemp stem is the most important morphological factor that influences the productivity of the plant. The longer the stem, the better are the processing outputs. The stem length and overall success of the crop can be directly affected by factors such as seed rate, genotype, climatic conditions and other such variables. These factors mentioned above are in tune with the circumstances one must look into for the cultivation of hemp in general and are hence to be considered as a sub-parameter. That is: while studying a parameter like farm size, the crop rotation involved in the farm must be a significant factor too. Crop rotation in India in not practiced in recent times due to reasons such as market pressure, improved technologies and existing fertilizers that have cornered farmers. Because of the imperative nature of maintaining crop rotation for hemp cultivation, areas where crop rotation is practiced would be suitable to approach for cultivation. Traditional growing zones are advised to be avoided to the extent possible. Easily available marketing facilities might result in cross purchases.
2.3 Land-Holding Pattern/Size Due to the lack of interest in hemp cultivation from farmers with large cultivable land, a good tactic would be to set up cultivation in smaller land holding sizes. Once the concept of hemp as a sustainable crop is shown via a working model. It will attract the interest of hemp cultivation on a commercial scale. However, knowing the requirements of hemp on the basis of machinery and fertiliser input. It would not be necessary at all to target larger land holding farmers. According to a NABRAD report, Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Manipur, Meghalaya, Nagaland, Rajasthan, Tripura and West Bengal have witnessed reduction in land holding size. At the same time it has been seen that the same
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
states have seen increase in operational farming land. It would be great to further investigate other parameters in these areas to find a good match. More information on land in respective states can be found out by approaching people/ bodies such as
State Electricity Board Public Works Department Office-bearers of Local Industry Associations Banks/State Financial Corporations District Industries Centre
2.4 Availability of raw materials The availability of good quality raw materials in required quantity at close hand is very crucial for the success of a new enterprise. The main raw material and the supplementary raw materials for the plant to operate must be identified. Subsequently, areas can be narrowed down for setting up the processing unit. The agro processing unit must be surrounded by many different feeders of hemp for its successful operation. A cluster of locations must exist around the processing at a relatively close distance to cut down on transportation expenses. The nature of the hemp crop is such that it takes a meagre four months to reach harvest phase. Moreover it can be sown as a kharif as well as a rabi crop. Strategic locations must be identified to cater to this advantage. Other than the raw material, water, power and other infrastructure facilities like access to road, railhead, ports and airport as well as the markets for the products have to be ensured.
2.5 Farming Techniques Small-scale farming in India rarely provides sufficient means of survival in many rural areas. It is therefore imperative to explore alternative income generating opportunities to poor families who can no longer fend for themselves from the land-based activities alone. Recent research demonstrates that rural households depend on a diverse portfolio of activities and income sources. Some households are looking towards activities such as food processing as a means to enhance the livelihood they can achieve from a limited area of land. In this context the small-scale food processing activities represent a potential source of livelihood for rural poor. The crop is cultivated in a wide range of climate in all parts of the country. It grows almost in every type of soil but cannot stand water logging. Land is required to be ploughed properly. The crop is useful in rotation with potato, tobacco (AP, Karnataka, TN) and other crops that are subjected to nematode infection. The crop is also rotated with sugarcane, rice, wheat
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
and jute (AP, TN, UP, West Bengal). It is also favoured as a cover crop in citrus, tea, cocoanut and rubber estates. It has proved as a special rotational crop with cotton in U.S.A.
2.5 Supply of Labour The availability of the required grade of labour i.e. skilled, semi-skilled or unskilled is an important factor influencing the location of the industry. Besides, the cost and productivity of labour, attitude of trade unions and the state of industrial relations in a particular region are also important. The varying labour costs across the country are certainly a significant factor that decides Wages constitute a major component of cost of cultivation in the country, because of the labour intensive nature of agricultural operations. Interestingly, the two graphs below portray the trends of labour rates in different states for skilled and unskilled labour. States of Gujarat and Chandigarh do well with the national average. However Maharashtra that shows low labour rates in this report does not fare well with most other articles that I had gone through, therefore questioning its credibility.
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.6 Proximity to the Product Market An industry should ideally be located close to the market for the product produced by the firm. This reduces the cost of transporting the finished product to the market. Hemp having a widespread market potential must focus more on cultivation and production, and subsequently attach itself to a market nearby. Not having an existing market makes it necessary to target locations where road infrastructure and transport facilities are good.
2.7 Availability of transport facilities A factory requires transport facilities both for getting its raw materials as well as for reaching its finished products to the market. Hence, location is to be chosen in such a way that its total transport cost is the lowest. Of the two elements of transport cost, which one will have a decisive influence on the decision of location will depend on the characteristics of the raw materials and the nature of the manufacturing process Transport and Storage Unprocessed hemp biomass, like agricultural residues or other fibre crops, is very bulky material, and the costs of transportation and storage are a major consideration in the largescale use of these products, regardless of their end use. The low density of stem core material from hemp, is an apparent major factor limiting their utilization in pulping. An inexpensive method of increasing their density is required to reduce
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
transportation costs and ease handling in the mill. Hemp requires protection from the elements to maintain quality, particularly if grown in high rainfall areas. Providing storage facilities and holding stocks of raw materials to ensure uninterrupted supply to a mill will involve considerable investment. The idea of pre-processing of the hemp before initial transport must be worked on as a possible solution to the problem.
2.8 Supply of Power With increased mechanisation, a location which ensures a regular and adequate supply of power and fuel for the business has become an indispensable requirement. Policies in favour of agro industries can be identified, for instance; the government of Gujrat provides the following Incentive on Power Tariff and Electricity Duty. “Agro and Food Processing units and Infrastructure Projects will be given power tariff subsidy at the rate of Re. 1 per unit in the billed amount of the utility as promotional incentive on reimbursement basis for a period of five years with effect from the commencement of commercial production/ rendering services Agro and Food Processing units and Infrastructure Projects will be given 100 % reimbursement for electricity duty paid for a period of five years on coterminous basis with power tariff subsidy. 1. Above assistance will be available to agro and food processing units and infrastructure projects on power purchased from the State electricity distribution companies or power distribution licensees. Agro and food processing units, either generating power from its captive power plant or getting electricity through open access will not be eligible for the incentive. 2. Existing units undertaking expansion/diversification will be entitled for power tariff subsidy and electricity duty reimbursement only for additional power consumed, attributable to such expansion/diversification.“
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.9 Government Regulations and Policies Central Government and the State Governments have made several policy announcements from time to time in order to encourage development of industries. Various incentive schemes have been provided to attract investment especially in backward areas. These are important factors while selecting a suitable location To increase farming infrastructure growth, the Cabinet cleared key proposals for rural development and railway lines. From developing clusters of smart villages to additional employment under MGNREGA, the Cabinet gave its nod for proposals aimed at driving growth. It is absolutely vital to further plan based on government policies towards growth in the agro sector. A few key things that can advance location selection for hemp, would be to pay attention to recent government plans such as 1) Smart plan for rural areas: The SPMRM mission aims to create 300 growth clusters over the next 3 years, across the country. In a bid to transform rural areas to economically, socially and physically sustainable spaces, the Cabinet approved the Shyama Prasad Mukherji Rurban Mission (SPMRM) with an outlay of Rs 5142.08 crore. The Mission will develop a cluster of Smart Villages. The cluster would focus on:
Skill development training linked to economic activities,
Agro Processing/Agri Services/Storage and Warehousing,
Digital Literacy,
Provision of piped water supply,
Village streets and drains,
Street lights,
Fully equipped mobile health unit,
Inter-village road connectivity etc.
These objectives of the smart plan, will all play a crucial role to the success of the hemp industry. It can definitely pose to be a good parameter while identifying a location.
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2) Vision India 2020 An important document to understand the state wise policies towards various business fronts. A brief study of this document clearly shows us how much money will be directed by the respective states towards the agro-processing industry. This may be shown directly or via indirect factors like agro infrastructure, water supply and logistics. A good example would be the state of Gujarat. The Sardar Sarovar Project, which is expected to be completed by the middle of the current decade, will provide annual irrigation benefits to an area of ~18.45 lakh hectares spread over 73 talukas of 15 districts in the state. The network will help in stabilising agricultural production by providing access to water to large parts of South Gujarat. Another example of how the vision 2020 document can be of help understanding state wise policies for the near future would be; Bihar. Bihar’s agro-based industry is expected to be a major growth driver for the economy, engendering large-scale employment in rural areas and high returns for the farmers. Given the endowment of fertile soil and water resources in Bihar, there can be a significant potential for agriculture development. More importantly the state government is focusing significantly on improving the quality of national and state highways as well as rural roads. 3) Subsidies Many state governments provide subsidies to agro based industries. These subsidies can be beneficial to all parties involved in the project. Subsidies are in the form of: Input Subsidies: Subsidies can be granted through distribution of inputs at prices that are less than the standard market price for these inputs. The magnitude of subsidies will therefore be equal to the difference between the two prices for per unit of input distributed. Naturally several varieties of subsidies can be named in this category. (a) Fertiliser Subsidy (b) Irrigation Subsidy (c) Power Subsidy (d) Seed Subsidies (e) Credit Subsidy
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Example: The state of Gujarat provides, assistance for Research 50% of the expenditure incurred & Development on research activity subject to ceiling of Rs.20 lacs. The Haryana Govts’ Policy towards Infrastructure development has lead to,
Great network of canals , distributary and tube wells , separate transmission lines for tube wells all this makes an efficient irrigation facility all-round the year
Ease of excess to quality hybrid seeds and fertilizers from government seed centres and valuable consultation from KVK's (each in a district ) which provides soil testing facility , advice regarding timings of irrigation and sowing and about the best breed to be sown .
Subsidy on installation of drip irrigation facility (highly efficient in horticulture), fountain irrigation, underground pipe lines, farming equipment.
Anaj Mandi's in each block, they are the market to the crops.
Identifying government subsidies of various nature from the respective state agriculture and agro processing departments will provide a good variable for zeroing in on the final location. 4) Schemes The State agricultural department programs and schemes for the welfare of farmers which may directly or indirectly benefit hemp cultivation in different states are listed below: West Bengal
Subsidized sale of quality seeds Production and distribution of organic manures Development of quality control of inputs Pest management including biological control of pests Development of cotton and other fibre Distribution of improved high-yielding/hybrid varieties of seeds though mini kits Agricultural training centre and farmer study tours Farm Advisory Services
Tamil Nadu
Seed processing units
Establishment of seed centres for procurement and distribution of Seeds
Establishment of a State seed farm
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Punjab
Soil Testing
Training of Farmers
Madhya Pradesh There are a multitude of agricultural schemes operating in this State and have been grouped under five main heads:
Crop Husbandry
Research and Education
Soil Conservation
Minor Irrigation
Micro Minor Irrigation
Haryana
Crop production and plant protection
Agricultural mechanization
Soil conservation
Integrated Watershed Development Project
Ground Water Cell
Gujarat
National Agriculture Insurance Scheme
Farmers Accident Insurance Scheme
Schemes for Remunerative Farm Produce Price
89/-Micro Irrigation Scheme
Farmers Training Centre
Soil and Water Testing Labs
Karnataka The State agricultural department is running more than a 100 plan and non-plan schemes. Major State schemes include:
National Agricultural Extension Project (NAEP)
Production and distribution of quality seeds
Popularization of bio-fertilizers
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Scheme for plant protection measures
Study tour of farmers within the State and country
Special component and tribal sub-plan
Supply of power tillers and tractors as an incentive to farmers
Distribution of machines such as rice planters, weeders and sugar planters
Andhra Pradesh Work Plan on macro management basis - Andhra Pradesh Training of Women in Agriculture (APTWA)
AP Economic Restructuring Programme (APERP)
Farm Mechanization
Example: Scheme in Rajasthan for Land acquisition Department of Revenue (Gr-6), Government of Rajasthan has amended the Revenue Rules vide notification Order No. F.6(6)Rev-6/92/pt/24 dated 14.10.2010 for following: i. Rajasthan Land Revenue (Conversion of Agriculture Land for Non-Agriculture Purposes in Rural Areas) Rules, 2007 has been amended to vest power for conversion of up to 10 hectare of agriculture land for setting up agro-processing or agri-business enterprises with the SubDivisional Officer and beyond 10 hectare with the District Collector.
2.10 Existence of complementary and competitive industries Such a location on one hand provides backward and forward linkages for the industries and on the other hand it provides a competitive environment for them. It increases the supply of the required raw materials and enhances the demand for the goods produced. It improves the labour market by attracting both skilled and unskilled manpower. It also improves the banking, credit and communication facilities in the area. It brings into existence various commercial services like warehousing, packing, forwarding, grading, appraising, advertising etc. which helps in the growth and expansion of all the business firms in the particular area
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.11 Socio-Economic condition of the region The social environment of villages is often stated to be an obstacle in agricultural development. It is said that the Indian farmer is illiterate, superstitious, conservative, and unresponsive to new agricultural techniques. However it is also true that the Indian farmer makes use of his resources very well. This fact gives hemp cultivation a chance on a smaller scale too, where huge amounts of agricultural infrastructure is not required. The output will be questionable but if many such clusters can be targeted, a fully operational processing unit will be achievable. This can also prove to be a working model to show other farmers the benefit of hemp cultivation.
2.12 Ecological benefits of hemp and flax cultivation and products Hemp is a valuable preceding crop in rotation. Hemp has a deep rooting system, has a favourable influence on the soil structure. After cultivation, the soil is left in optimum conditions due to the complete weed suppression following from the high shading capacity of hemp. A study by Bócsa and Karus 1998 reports 10–20 percent higher wheat yields after the cultivation of hemp ( Possible impact locations: UP, MP, Punjab, Haryana). Furthermore, due to its vigorous growth, hemp is known to be a pioneer plant that can be used for land reclamation. Due to its vigorous growth, shading capacity and disease resistance, hemp can be grown without the use of herbicides, pesticides or fungicides.
3. Conclusions
Cluster approach, to make sure raw material for the processing plant is in supply throughout the year Depending on the financial status of the project, large holding as well as smaller holdings can be targeted for cultivation. However one is not so much more advantageous as the other. Incorporating a pre-processing at cultivation site can reduce a significant amount of transport costs There are many states providing great subsidies and schemes for new agro industries, however the weightage of each scheme will depend again on the scale of operation States with good, established agricultural universities is always a benefit to all parties involved Open mindedness of the community which one is involving itself with is paramount importance especially in the initial stages
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
4. References
o Sources for Data relating to food processing industries o http://dipp.nic.in http://mospi.nic.in www.apeda.gov.in http://rbi.org.in www.fao.org http://agricoop.nic.in www.nddb.org www.nhb.gov.in o https://www.nabard.org/Publication/Rural_Pulse_final142014.pdf o https://gaic.gujarat.gov.in/writereaddata/images/pdf/comprehensive-agrobusiness-policy-gr-2016-2021.pdf o Jodha, N. S., and Singh R. P. "Crop Rotation in Traditional Farming Systems in Selected Areas of India." Economic and Political Weekly 25.13 (1990): A28-35. Web.
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Chapter 1: INTRODUCTION For an agro processing unit to run successfully, it must operate throughout the year. To achieve this, there must be a constant source of raw material (industrial hemp). Working on the assumption that the climatic and soil fertility rate are equitable in all states, I have narrowed down on a few straight-forward/obvious parameters as well as some non-obvious but interesting parameters.
Chapter 2: PARAMETERS
2.1: Awareness/Education Hemp is lacking the attention it needs by growers. The facilitation of cultivation and processing of hemp will become many folds easier in locations where its awareness exists. Since awareness programmes are limited in this field, one approach could be to identify areas where there are existing programmes and incorporate the hemp approach within them. Andhra Pradesh, Karnataka, Himachal Pradesh, Chandigarh, Jharkhand, Kerala and West Bengal have active training programmes, aimed at improving farming techniques and incorporating modern practices. Srijan (http://srijanindia.org/) is one such NGO that conducts widespread programmes for farmers within the country and is currently active in
Odisha: Anugul Chhattisgarh: Koriya Karnataka: Mundgod, Haveri Rajasthan: Bundi, Duni, Pratapgarh, Pali, Newai Madhya Pradesh: Jaisinagar, Anuppur, Jatara, Chhindwara
For BOHECO
Page | 1
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.2: Cultivation Method It is imperative to make sure that the agro processing unit receives hemp throughout the year for it to have continuous operations. Hemp is best grown as a rotational crop. There are a number of factors that must be considered when planning a crop rotation. A good crop rotation requires the weighing of fixed as well as fluctuating production circumstances like: market, farm size, labour supply, climate, soil type etc. The hemp stem is the most important morphological factor that influences the productivity of the plant. The longer the stem, the better are the processing outputs. The stem length and overall success of the crop can be directly affected by factors such as seed rate, genotype, climatic conditions and other such variables. These factors mentioned above are in tune with the circumstances one must look into for the cultivation of hemp in general and are hence to be considered as a sub-parameter. That is: while studying a parameter like farm size, the crop rotation involved in the farm must be a significant factor too. Crop rotation in India in not practiced in recent times due to reasons such as market pressure, improved technologies and existing fertilizers that have cornered farmers. Because of the imperative nature of maintaining crop rotation for hemp cultivation, areas where crop rotation is practiced would be suitable to approach for cultivation. Traditional growing zones are advised to be avoided to the extent possible. Easily available marketing facilities might result in cross purchases.
2.3 Land-Holding Pattern/Size Due to the lack of interest in hemp cultivation from farmers with large cultivable land, a good tactic would be to set up cultivation in smaller land holding sizes. Once the concept of hemp as a sustainable crop is shown via a working model. It will attract the interest of hemp cultivation on a commercial scale. However, knowing the requirements of hemp on the basis of machinery and fertiliser input. It would not be necessary at all to target larger land holding farmers. According to a NABRAD report, Andhra Pradesh, Assam, Haryana, Himachal Pradesh, Karnataka, Manipur, Meghalaya, Nagaland, Rajasthan, Tripura and West Bengal have witnessed reduction in land holding size. At the same time it has been seen that the same
For BOHECO
Page | 2
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
states have seen increase in operational farming land. It would be great to further investigate other parameters in these areas to find a good match. More information on land in respective states can be found out by approaching people/ bodies such as
State Electricity Board Public Works Department Office-bearers of Local Industry Associations Banks/State Financial Corporations District Industries Centre
2.4 Availability of raw materials The availability of good quality raw materials in required quantity at close hand is very crucial for the success of a new enterprise. The main raw material and the supplementary raw materials for the plant to operate must be identified. Subsequently, areas can be narrowed down for setting up the processing unit. The agro processing unit must be surrounded by many different feeders of hemp for its successful operation. A cluster of locations must exist around the processing at a relatively close distance to cut down on transportation expenses. The nature of the hemp crop is such that it takes a meagre four months to reach harvest phase. Moreover it can be sown as a kharif as well as a rabi crop. Strategic locations must be identified to cater to this advantage. Other than the raw material, water, power and other infrastructure facilities like access to road, railhead, ports and airport as well as the markets for the products have to be ensured.
2.5 Farming Techniques Small-scale farming in India rarely provides sufficient means of survival in many rural areas. It is therefore imperative to explore alternative income generating opportunities to poor families who can no longer fend for themselves from the land-based activities alone. Recent research demonstrates that rural households depend on a diverse portfolio of activities and income sources. Some households are looking towards activities such as food processing as a means to enhance the livelihood they can achieve from a limited area of land. In this context the small-scale food processing activities represent a potential source of livelihood for rural poor. The crop is cultivated in a wide range of climate in all parts of the country. It grows almost in every type of soil but cannot stand water logging. Land is required to be ploughed properly. The crop is useful in rotation with potato, tobacco (AP, Karnataka, TN) and other crops that are subjected to nematode infection. The crop is also rotated with sugarcane, rice, wheat
For BOHECO
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
and jute (AP, TN, UP, West Bengal). It is also favoured as a cover crop in citrus, tea, cocoanut and rubber estates. It has proved as a special rotational crop with cotton in U.S.A.
2.5 Supply of Labour The availability of the required grade of labour i.e. skilled, semi-skilled or unskilled is an important factor influencing the location of the industry. Besides, the cost and productivity of labour, attitude of trade unions and the state of industrial relations in a particular region are also important. The varying labour costs across the country are certainly a significant factor that decides Wages constitute a major component of cost of cultivation in the country, because of the labour intensive nature of agricultural operations. Interestingly, the two graphs below portray the trends of labour rates in different states for skilled and unskilled labour. States of Gujarat and Chandigarh do well with the national average. However Maharashtra that shows low labour rates in this report does not fare well with most other articles that I had gone through, therefore questioning its credibility.
For BOHECO
Page | 4
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.6 Proximity to the Product Market An industry should ideally be located close to the market for the product produced by the firm. This reduces the cost of transporting the finished product to the market. Hemp having a widespread market potential must focus more on cultivation and production, and subsequently attach itself to a market nearby. Not having an existing market makes it necessary to target locations where road infrastructure and transport facilities are good.
2.7 Availability of transport facilities A factory requires transport facilities both for getting its raw materials as well as for reaching its finished products to the market. Hence, location is to be chosen in such a way that its total transport cost is the lowest. Of the two elements of transport cost, which one will have a decisive influence on the decision of location will depend on the characteristics of the raw materials and the nature of the manufacturing process Transport and Storage Unprocessed hemp biomass, like agricultural residues or other fibre crops, is very bulky material, and the costs of transportation and storage are a major consideration in the largescale use of these products, regardless of their end use. The low density of stem core material from hemp, is an apparent major factor limiting their utilization in pulping. An inexpensive method of increasing their density is required to reduce
For BOHECO
Page | 5
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
transportation costs and ease handling in the mill. Hemp requires protection from the elements to maintain quality, particularly if grown in high rainfall areas. Providing storage facilities and holding stocks of raw materials to ensure uninterrupted supply to a mill will involve considerable investment. The idea of pre-processing of the hemp before initial transport must be worked on as a possible solution to the problem.
2.8 Supply of Power With increased mechanisation, a location which ensures a regular and adequate supply of power and fuel for the business has become an indispensable requirement. Policies in favour of agro industries can be identified, for instance; the government of Gujrat provides the following Incentive on Power Tariff and Electricity Duty. “Agro and Food Processing units and Infrastructure Projects will be given power tariff subsidy at the rate of Re. 1 per unit in the billed amount of the utility as promotional incentive on reimbursement basis for a period of five years with effect from the commencement of commercial production/ rendering services Agro and Food Processing units and Infrastructure Projects will be given 100 % reimbursement for electricity duty paid for a period of five years on coterminous basis with power tariff subsidy. 1. Above assistance will be available to agro and food processing units and infrastructure projects on power purchased from the State electricity distribution companies or power distribution licensees. Agro and food processing units, either generating power from its captive power plant or getting electricity through open access will not be eligible for the incentive. 2. Existing units undertaking expansion/diversification will be entitled for power tariff subsidy and electricity duty reimbursement only for additional power consumed, attributable to such expansion/diversification.“
For BOHECO
Page | 6
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.9 Government Regulations and Policies Central Government and the State Governments have made several policy announcements from time to time in order to encourage development of industries. Various incentive schemes have been provided to attract investment especially in backward areas. These are important factors while selecting a suitable location To increase farming infrastructure growth, the Cabinet cleared key proposals for rural development and railway lines. From developing clusters of smart villages to additional employment under MGNREGA, the Cabinet gave its nod for proposals aimed at driving growth. It is absolutely vital to further plan based on government policies towards growth in the agro sector. A few key things that can advance location selection for hemp, would be to pay attention to recent government plans such as 1) Smart plan for rural areas: The SPMRM mission aims to create 300 growth clusters over the next 3 years, across the country. In a bid to transform rural areas to economically, socially and physically sustainable spaces, the Cabinet approved the Shyama Prasad Mukherji Rurban Mission (SPMRM) with an outlay of Rs 5142.08 crore. The Mission will develop a cluster of Smart Villages. The cluster would focus on:
Skill development training linked to economic activities,
Agro Processing/Agri Services/Storage and Warehousing,
Digital Literacy,
Provision of piped water supply,
Village streets and drains,
Street lights,
Fully equipped mobile health unit,
Inter-village road connectivity etc.
These objectives of the smart plan, will all play a crucial role to the success of the hemp industry. It can definitely pose to be a good parameter while identifying a location.
For BOHECO
Page | 7
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2) Vision India 2020 An important document to understand the state wise policies towards various business fronts. A brief study of this document clearly shows us how much money will be directed by the respective states towards the agro-processing industry. This may be shown directly or via indirect factors like agro infrastructure, water supply and logistics. A good example would be the state of Gujarat. The Sardar Sarovar Project, which is expected to be completed by the middle of the current decade, will provide annual irrigation benefits to an area of ~18.45 lakh hectares spread over 73 talukas of 15 districts in the state. The network will help in stabilising agricultural production by providing access to water to large parts of South Gujarat. Another example of how the vision 2020 document can be of help understanding state wise policies for the near future would be; Bihar. Bihar’s agro-based industry is expected to be a major growth driver for the economy, engendering large-scale employment in rural areas and high returns for the farmers. Given the endowment of fertile soil and water resources in Bihar, there can be a significant potential for agriculture development. More importantly the state government is focusing significantly on improving the quality of national and state highways as well as rural roads. 3) Subsidies Many state governments provide subsidies to agro based industries. These subsidies can be beneficial to all parties involved in the project. Subsidies are in the form of: Input Subsidies: Subsidies can be granted through distribution of inputs at prices that are less than the standard market price for these inputs. The magnitude of subsidies will therefore be equal to the difference between the two prices for per unit of input distributed. Naturally several varieties of subsidies can be named in this category. (a) Fertiliser Subsidy (b) Irrigation Subsidy (c) Power Subsidy (d) Seed Subsidies (e) Credit Subsidy
For BOHECO
Page | 8
PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Example: The state of Gujarat provides, assistance for Research 50% of the expenditure incurred & Development on research activity subject to ceiling of Rs.20 lacs. The Haryana Govts’ Policy towards Infrastructure development has lead to,
Great network of canals , distributary and tube wells , separate transmission lines for tube wells all this makes an efficient irrigation facility all-round the year
Ease of excess to quality hybrid seeds and fertilizers from government seed centres and valuable consultation from KVK's (each in a district ) which provides soil testing facility , advice regarding timings of irrigation and sowing and about the best breed to be sown .
Subsidy on installation of drip irrigation facility (highly efficient in horticulture), fountain irrigation, underground pipe lines, farming equipment.
Anaj Mandi's in each block, they are the market to the crops.
Identifying government subsidies of various nature from the respective state agriculture and agro processing departments will provide a good variable for zeroing in on the final location. 4) Schemes The State agricultural department programs and schemes for the welfare of farmers which may directly or indirectly benefit hemp cultivation in different states are listed below: West Bengal
Subsidized sale of quality seeds Production and distribution of organic manures Development of quality control of inputs Pest management including biological control of pests Development of cotton and other fibre Distribution of improved high-yielding/hybrid varieties of seeds though mini kits Agricultural training centre and farmer study tours Farm Advisory Services
Tamil Nadu
Seed processing units
Establishment of seed centres for procurement and distribution of Seeds
Establishment of a State seed farm
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Punjab
Soil Testing
Training of Farmers
Madhya Pradesh There are a multitude of agricultural schemes operating in this State and have been grouped under five main heads:
Crop Husbandry
Research and Education
Soil Conservation
Minor Irrigation
Micro Minor Irrigation
Haryana
Crop production and plant protection
Agricultural mechanization
Soil conservation
Integrated Watershed Development Project
Ground Water Cell
Gujarat
National Agriculture Insurance Scheme
Farmers Accident Insurance Scheme
Schemes for Remunerative Farm Produce Price
89/-Micro Irrigation Scheme
Farmers Training Centre
Soil and Water Testing Labs
Karnataka The State agricultural department is running more than a 100 plan and non-plan schemes. Major State schemes include:
National Agricultural Extension Project (NAEP)
Production and distribution of quality seeds
Popularization of bio-fertilizers
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
Scheme for plant protection measures
Study tour of farmers within the State and country
Special component and tribal sub-plan
Supply of power tillers and tractors as an incentive to farmers
Distribution of machines such as rice planters, weeders and sugar planters
Andhra Pradesh Work Plan on macro management basis - Andhra Pradesh Training of Women in Agriculture (APTWA)
AP Economic Restructuring Programme (APERP)
Farm Mechanization
Example: Scheme in Rajasthan for Land acquisition Department of Revenue (Gr-6), Government of Rajasthan has amended the Revenue Rules vide notification Order No. F.6(6)Rev-6/92/pt/24 dated 14.10.2010 for following: i. Rajasthan Land Revenue (Conversion of Agriculture Land for Non-Agriculture Purposes in Rural Areas) Rules, 2007 has been amended to vest power for conversion of up to 10 hectare of agriculture land for setting up agro-processing or agri-business enterprises with the SubDivisional Officer and beyond 10 hectare with the District Collector.
2.10 Existence of complementary and competitive industries Such a location on one hand provides backward and forward linkages for the industries and on the other hand it provides a competitive environment for them. It increases the supply of the required raw materials and enhances the demand for the goods produced. It improves the labour market by attracting both skilled and unskilled manpower. It also improves the banking, credit and communication facilities in the area. It brings into existence various commercial services like warehousing, packing, forwarding, grading, appraising, advertising etc. which helps in the growth and expansion of all the business firms in the particular area
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
2.11 Socio-Economic condition of the region The social environment of villages is often stated to be an obstacle in agricultural development. It is said that the Indian farmer is illiterate, superstitious, conservative, and unresponsive to new agricultural techniques. However it is also true that the Indian farmer makes use of his resources very well. This fact gives hemp cultivation a chance on a smaller scale too, where huge amounts of agricultural infrastructure is not required. The output will be questionable but if many such clusters can be targeted, a fully operational processing unit will be achievable. This can also prove to be a working model to show other farmers the benefit of hemp cultivation.
2.12 Ecological benefits of hemp and flax cultivation and products Hemp is a valuable preceding crop in rotation. Hemp has a deep rooting system, has a favourable influence on the soil structure. After cultivation, the soil is left in optimum conditions due to the complete weed suppression following from the high shading capacity of hemp. A study by Bócsa and Karus 1998 reports 10–20 percent higher wheat yields after the cultivation of hemp ( Possible impact locations: UP, MP, Punjab, Haryana). Furthermore, due to its vigorous growth, hemp is known to be a pioneer plant that can be used for land reclamation. Due to its vigorous growth, shading capacity and disease resistance, hemp can be grown without the use of herbicides, pesticides or fungicides.
3. Conclusions
Cluster approach, to make sure raw material for the processing plant is in supply throughout the year Depending on the financial status of the project, large holding as well as smaller holdings can be targeted for cultivation. However one is not so much more advantageous as the other. Incorporating a pre-processing at cultivation site can reduce a significant amount of transport costs There are many states providing great subsidies and schemes for new agro industries, however the weightage of each scheme will depend again on the scale of operation States with good, established agricultural universities is always a benefit to all parties involved Open mindedness of the community which one is involving itself with is paramount importance especially in the initial stages
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PARAMETERS INVOLVED FOR CULTIVATION AND PROCESSING OF HEMP IN INDIA
4. References
o Sources for Data relating to food processing industries o http://dipp.nic.in http://mospi.nic.in www.apeda.gov.in http://rbi.org.in www.fao.org http://agricoop.nic.in www.nddb.org www.nhb.gov.in o https://www.nabard.org/Publication/Rural_Pulse_final142014.pdf o https://gaic.gujarat.gov.in/writereaddata/images/pdf/comprehensive-agrobusiness-policy-gr-2016-2021.pdf o Jodha, N. S., and Singh R. P. "Crop Rotation in Traditional Farming Systems in Selected Areas of India." Economic and Political Weekly 25.13 (1990): A28-35. Web.
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