Lemon Grass in the Patna. District of Bihar India. By. Prof. Krishna M. Singh, Director SAMETI, Bihar, India. Prof. Burton E. Swanson, Prof. Emeritus, UIUC, USA.
Development of Supply Chain of Lemon Grass in the Patna District of Bihar India By
Prof. Krishna M. Singh, Director SAMETI, Bihar, India Prof. Burton E. Swanson, Prof. Emeritus, UIUC, USA
Expert Consultations on Herbal, Medicinal & Aromatic Plants, ICARDA, Aleppo, Syria, 10-12 July 2007
Background ATMA, Patna pursued a strategy that would help farmers diversify into higher value commodities and products. Three criteria were used to evaluate alternative crops and products within the district: 9 There had to be a continuing market demand for the crop or product. 9 The crop must be well suited to the existing agro-climatic conditions, and 9 The production technology to be used must be relatively lowcost to reduce the farmer’s risk and provide enhanced returns. 9 In other words, each ATMA is expected to pursue: 9 Market-driven, 9 Farmer centered, and 9 Environmentally friendly approach to agril. diversification.
Lemon grass: The ideal crop The following case study outlines the steps followed by the ATMA, Patna to assess and develop a financially sustainable supply chain for the production and post harvesting handling of Lemon Grass by groups of farmers in the district. district Lemongrass cultivation due to its many advantages has come as boon for the farmers, some of them are as follows: 9 They can be grown even on less fertile and marginal lands. 9 They resist drought and can grow successfully where no other crop generally grows provided, some care is taken by the farmers in terms of providing life saving irrigation. 9 There is little damage to the crop from animals and insect-pest, as they normally keep away from it due to its bitter taste. 9 Attractive economic returns with little risk on the part of the growers. 9 Selling the Lemon grass oil is not a problem because of its ever increasing demand and a large number of buyers.
Building the Supply Chain for Lemon grass 9The main constituent of lemongrass oil is 7088% of citral, 9Minor constituents are: linalool, geraniol, citronellol, nerol, 1.8 cineol, linayl acetate etc. 9The perfume industry has found that Lemon grass oil can give almost the same effect in blends as more expensive scents. 9Pharmaceutical industry also uses the lemon grass oil extensively 9Therefore, cultivation of HMAPs quickly emerged an important crop for small-scale farmers
Step 1: Conduct PRA and develop SREP 9Participatory Rural Appraisal (PRA) used to assess local condition and to identify marketable crops that could be successfully introduced 9Entrepreneurial farmers already producing different Herbal, Medicinal & Aromatic Plants (HMAPs) were identified 9Researchers were consulted to determine which HMAPs could be successfully grown in Patna district 9Findings included in Strategic Research and Extension Plan (SREP) and submitted to ATMA Governing Board for approval
Step 2A: Investigate potential markets 9Investigating potential markets was difficult since traders engage in secretive and opportunistic buying practices 9The Internet, published sources, the media and personal contacts were all used to identify firms that manufacture traditional medicines 9Different companies were contacted to determine their interest in contracting with farmers to produce to specification. 9Many firms were not interested, Potential demand for different HMAPs was assessed from interested firms
Step 2B: Organize Farmers into FIGs 9Farmers with similar social/economic backgrounds and shared goals were organized into farmer interest groups (FIGs) 9Typical village-level FIGs have 10-15 members 9FIGs that share a common interest, such HMAPs (Lemon grass), may organize into a block-level Farmer Association (FA) and these FAs may organize at district level into Farm Federations (FFs). 9The goal was to create a producer network whereby a substantial quantity of Lemon grass oil could be produced on a sustained basis to secure: 9Economies of scale 9Increased market power 9Good financial returns for members
Step 2C: Develop/Test Production Technologies 9Company contracting for Lemon grass wanted the crop . produced organically 9KVK was asked to develop and validate the technology 9Then the KVK was to train the FIG members so they could meet the company’s quality and organic production specifications
Step 3A: Facilitate Contract Negotiations 9A contract was negotiated between the company and a group of FIGs to supply lemon grass oil. 9ATMA, Patna served as the facilitator between the FIGs and the Buyer. 9Contract specified that the produce should be free from any adulteration, with min. 70% citral content 9Company agreed to buy 2MT/year during next five years with a provision of a 20% increase each year. 9Securing credible markets was considered essential to the success of this activity
Step 3B: Arrange exposure visits for FIGs 9FIG leaders were taken to other states (Maharashtra, Uttar Pradesh and Madhya . to learn how other farmers have Pradesh) successfully grown HMAPs 9FIG members were taken to other districts to visit other farmers who were successfully producing herbal, medicinal & aromatic crops 9FIG leaders were also taken to research institutions, like CIMAP in Lucknow and the FFDC in Kannauj to learn about: 9Specific high-value aromatic crops 9The production and post-harvest handling techniques needed to successfully produce these crops.
Step 3C: Training FIG Members 9Training programs were organized by by ATMA in association with national institutes like CIMAP in Lucknow, CEDMAP in Bhopal and FFDC in Kannauj 9The local KVK and experts from the SAU also helped train the FIG members 9Company experts were also actively involved in training the FIG members
Step 4: Arranging for Quality Planting Material 9Planting material (Slips) for lemon grass was made available to farmers by the ATMA on actual costsharing basis 9Since not available locally, they were procured from CIMAP, Lucknow and FFDC, Kannauj 9The actual cost of Rs.2/- per slip was charged from the farmers
Step 5: Technical Backstopping of FIGs 9Company technical staff and researchers from the KVK, SAU and ATMA visited the farmers regularly to monitor the crop 9Care was taken to ensure that the crop remains organic and free from any pesticide contamination 9Any problems encountered were resolved in the field itself
Step 6: Harvesting, & Oil Extraction 9All pre- and post-harvest handling is supervised by the company and ATMA . 9The crop must be harvested properly, shade dried and then cut into pieces before loading in the Field Distillation unit for oil extraction, as per the requirement of the company 9Also, the Oil must be properly packed in food grade plastic or stainless steel containers before transporting to the delivery site
Step 7: Oil Tested and Delivered 9FIG members transport the lemon grass oil in food grade plastic or stainless steel containers to the company’s delivery station 9The company has its own testing facilities located here. 9Samples are tested for moisture content, pesticide residues and citral content, (min 70% desired) 9Payment to farmers is made after testing the oil for citral content and weighing the oil
Steps in Developing a Supply Chain ATMA Organizes PRA and develops a SREP Identify firms that buys and uses Lemon grass oil
BTTs organize FIGs; assess interest in HMAPs
ATMA facilitates contract agreement between FIGs and buyer
FIG leaders oriented to Aromatic crops through exposure visits
Consult with research institutions; KVK to field test technologies
ATMA arranges with KVK to train FIG members
Arrange for planting material (slips) and other inputs needed to produce the Lemon grass oil FIG members produce lemon grass oil to specification; BTT and buyer’s staff supervise Transport Lemon grass oil to delivery site, test product, weigh product and pay farmers
Details of Aromatic crops being grown in Bihar through leads provided by ATMA, Patna (Year 2005-06) 06 Aromatic Crops
Area (ha.)
Oil yield (kg./Ha.
Total oil Rate at producti which on (kg.) oil sold Rs./kg
Gross income Rs./ha
Net income per ha. Rs./ yr
Lemon grass
102
140
14280
300
42000
19500
Java citronella
30
125
3750
270
33750
14250
Mentha
110
120
13200
300
36000
15500
Palma Rosa
20
100
2000
405
40500
18000
Tulsi (basil)
24
100
2400
200
20000
8500
Jama rosa/CN-5
13
155
2275
325
50375
25375
Total
299
37905
Source- Singh, 2006, World Bank Study on ATMA Model in Bihar
