CHAPTER III A PROFILE OF THE STUDY AREA ...shodhganga.inflibnet.ac.in/bitstream/10603/92070/11/11...Profile of the Study Area 60 CHAPTER III A PROFILE OF THE STUDY AREA: KARNATAKA

Profile of the Study Area

60

CHAPTER III

A PROFILE OF THE STUDY AREA:

KARNATAKA AND THE SIX STUDY DISTRICTS

3.1 Introduction

In the last two chapters, the problem under study with all its other aspects of

significance and the scholastic background for the study of HOPCOMS, or rather

generally cooperatives, from a literature review of researches conducted across the

world, but more particularly in India and other developing countries have been

accomplished. The discussion now turns to a profile of the study area, Karnataka State

and six districts of the State which are important horticultural producers of the State.

An elaborate discussion of the horticultural developments of the State and the study

districts is also attempted. To provide for an appreciation of agriculture, horticulture,

crops and also fruits and vegetables, a brief geography of the State as well as the six

study districts is presented. For comparisons, however, a detailed discussion of the

horticultural crops is first made with respect to the State of Karnataka and the study

area, and then particularly on fruit and vegetable crops of the world and India, and

then on the same crops of Karnataka and the six districts of the State, before delving

deeply into Horticultural Societies and HOPCOMS. The discussion wherever possible

is on the area, production, yield and value of fruits and vegetables from a global,

national (only briefly), regional and local perspectives (as elaborately as needed).

Thus, both spatial and temporal variations in the area, production, yields and

monetary value of the crops produced are discussed.

3.2 A Profile of the Study Area

Mysore state acceded to the Union in 1947 and the then Maharajah Sri

Jayachamaraja Wadiyar, nephew of his predecessor, became Rajpramukh (Governor).

When the Indian States were reorganized on a linguistic basis by the States

Reorganization Act of 1956, a new Mysore State (renamed Karnataka in 1973) was

formed to unite the Kannada-speaking areas of the country and Bangalore remained

the state capital. Karnataka State is located between 11031’ N and 18048’ N latitudes

and 74012’ E and 78040’ E longitudes. It lies in the west-central part of the peninsular

India. Its length from north to south is 700 km and from east to west is 400 km, at the

longest and broadest points.


61

The State was created on November 1, 1956. It covers an area of 191,791 km2,

which is 5.8 per cent of the total geographical area of India, making it the eighth

largest State in India in area. It has a total population of 61 million persons, which is

5.1 per cent of India’s total population. The population has increased at a rate of 15

per cent between 2001 and 2011. About 60 per cent of the population in the State is in

the working-age group (15 to 59 years), while only about 45 per cent is actually

working. Of the total workers, 55 per cent are involved in agriculture alone, either as

cultivators or agricultural labourers.

The State is divided into 30 districts, which are further divided into 175 sub-

districts and 29,406 villages. Kannada is the most widely spoken and official language

of the State.Out of 30 districts in the State, nine districts account for over 51 per cent

of the population. These are Bangalore Rural, Bangalore Urban, Tumkur, Mysore,

Dakshina Kannada, Bellary, Belgaum, Bijapur and Gulbarga. The population

concentration is in maximum where there are greater opportunities for employment

and where there is industrial development. In addition to these the districts of

Bangalore Urban, Belgaum and Mysore also have good connectivity and social

infrastructure. In 2011, the State has achieved the literacy rate of 75.6 per cent, which

is slightly higher than the All-India average of 74 per cent. Male literacy stands at

82.85 percent while female literacy is at 68.13 percent. Figure 3.1 shows the location

of the study area, mainly the six districts of the state of Karnataka and the city of

Bangalore,

In 2011-12, the State had a Gross State Domestic Product (GSDP) of Rs.

2,980 billion at constant prices and the per capita income was Rs. 69,493 per person

per annum. Services sector made the biggest contribution to GSDP at 54 per cent,

which is followed by 28 per cent in industry and 17 per cent in agriculture. However,

in terms of worker distribution1, agriculture employs the majority of the population at

55 per cent as cultivators (29 per cent) and agricultural labourers (26 per cent). About

4 per cent of the remaining are the workers in household industry, and 40 per cent are

‘other workers’.


62

Figure 3.1: Location of the Study Area: The Six districts of Karnataka


63

Bangalore (Bengaluru, as of now), the capital of Karnataka, is endowed by

nature with a very salubrious and equable climate. The mean temperature in the

warmest month (April) is 27.1o C (80.8o F) and in the coldest month (January) is 20.4o

C (68.8o F). The temperature during the day rarely exceeds 34o C (93o F) in summer

(April and May) and seldom falls below 15.5o C (60o F) on winter nights (December,

January and February). The atmosphere is neither very humid nor very dry. The mean

values of the relative humidity in the wettest (September) and driest (January) months

are 76 per cent and 63 per cent, respectively. The climate of Bangalore makes it very

conducive for growing a variety of fruits and vegetables. Bangalore city is the primary

focus of our study, although the six districts of the southern Karnataka we concern

ourselves with are essentially the suppliers of fruits and vegetables to the 285 outlets

HOPCOMS of the city.

The fifth largest city in India, it was built in the year 1537 by Kempe Gowda

as a mud fort, with eight gates, which have lent their names to different areas: Ulsoor

Gate, Kengeri Gate and so on. Inside the fortress walls, the city grew into a bustling

commercial area. Divided into pets or localities, where one trade dominated each area,

to this day, these areas bear their old names such as Chickpet (Little Town), Doddapet

(Big Town),Taragupet (Grain Market Town), and Halipet (Cotton Market Town). In

1687, the Mughals captured Bangalore from the Bijapura Sultanate and gave it on

lease to King ChikkadevarayaWadiyar of Mysore, eventually selling the city to the

Mysore rulers for a paltry half a million rupees. The 19th century saw Bangalore grow

from mere military station to the British into a flourishing administrative centre and a

prime residential locality, with an aura of graciousness that sets it apart from other

cantonments. It was separated from the old town, which had the fort as its nucleus, by

a strip of open land about a mile-and-a-half wide.

Even though agriculture and allied sectors have only a 17 per cent share in

State’s GSDP, they continue to provide employment to about 55 per cent of the total

workforce. Allied activities such as horticulture, fishery, sericulture, animal

husbandry, poultry and dairy are important sources of income for the people. As of

2009-10, total cropped area in the State was 12.87 million hectares, which is 66 per

cent of the total geographical area of the State. Main crops grown in the State are

paddy and ragi. The State is also famous for production of coffee, coconut, groundnut,

sugarcane and cocoons (silk worms).Horticulture has come up as a big opportunity in


64

the State. Total area under horticulture crops is 1.97 million hectares, which is 15 per

cent of the total cropped area. However, its contribution to gross value of output of

agricultural sector is over 40 per cent. Karnataka is the largest producer of spices,

aromatic and medicinal plants in the country.One of the leading industrial state of the

country, Karnataka has been attracting both domestic and foreign investments and is

home for some of the leading Indian and Multinational Companies. The State is rich

in mineral resources.

Floriculture also represents a huge potential, with Bengaluru exporting flowers

all over the globe. Recognizing this potential of horticulture and the allied processing,

thrust is being placed on this sector across districts such as Kolar, Chikkaballapura,

Uttara Kannada, Kodagu, and Chikkamagalur.

Karnataka has been spearheading the growth of Indian industry, particularly

high-technology industries in the areas of electrical and electronics, information and

communication technology (ICT), biotechnology and more recently even

nanotechnology. The State is a manufacturing hub for some of the largest public

sector industries such as the Hindustan Aeronautics Limited (HAL), Bharat Heavy

Electricals Limited (BHEL), and Bharat Earth Movers Limited (BEML). The State is

home to some of the biggest organizations of the world, mainly concentrated in

Bengaluru, Mangalore and Mysore. Other centres like Hubli-Dharwad, Belagavi,

Gulbarga, Ramanagara are also attracting big companies. Bangalore Urban, Bangalore

Rural, Mysore, Tumkur and Dakshin Kannada account for 70 per cent of large and

medium scale industrial units in the State. Belgaum, Bellary, Koppal, Bagalkot and

Dharwad account for 20 per cent of the same. According to the Annual Survey of

Industries (ASI), the State has about 9,000 factories. Karnataka has also accounted

thus for 5.38 per cent of the total registered factories in the country in 2009-10. In

December 2011, the State had 810 large and medium scale industrial units. These

have invested Rs.911,270 million in the State. In addition, there were 413,284 Small

Scale Industrial (SSI) Units, which had invested Rs. 123,980 million.

Karnataka Udyog Mitra (KUM) is a single contact point for all investors who

intend to set up enterprises/businesses in Karnataka. The State Level Single Window

Clearance Committee (SLSWCC) has cleared 5,661 projects totaling Rs. 846, 520

million between 1988-89 and 2012-13 (in about 72 SLSWCC meetings). Of these,


65

1,396 projects have been implemented, totaling an investment of Rs. 201,300 million.

Of the total projects implemented, 50 per cent of the investment has been

concentrated in five sectors alone, namely, engineering, software technology park,

food processing, software and hardware and power projects. And, close to half of the

investments have come in Bangalore Urban (41 per cent) and Bangalore Rural

districts (eight per cent). This is followed by Bellary, Belgaum, Mysore and other

districts.

The services sector includes wholesale and retail trade, hotels and restaurants,

transport, storage and communication, banking and insurance, real estate, public

administration and other services. In 2011-12, services sector has accounted for 56 per

cent to the State’s GSDP. Its share has increased from 51 per cent in 2004-05. The

biggest contributor to services is the ‘real estate and business services’ sector. This is

followed by trade, hotels and restaurants. Tourism industry in the State has also

boomed due to the presence of several tourism spots.

In 2010-11, Karnataka state had 72,875 schools. Of the total schools in

Karnataka, maximum at 8.5 per cent were concentrated in Bangalore Urban district

alone. This was followed by Hassan district at 4.8 per cent. The lowest percentage of

schools was in Kodagu district at just 1.0 per cent. The total student enrolment in

Karnataka was over 10 million. About 13 per cent of the enrolment was in Bangalore

Urban district alone. Karnataka is also known as the ‘Knowledge Hub of India’. For

higher education, the State has 44 universities / deemed universities. There are a total

of 1,362 colleges enrolling 515,838 students. Most of the colleges at 52 per cent are

private unaided, followed by 26 per cent Government administered and the remaining

22 per cent private aided colleges. College education is taken care of by the

Department of Collegiate Education. Karnataka has some of the reputed higher

educational institutions such as the IISc, IIM, NIT, NLS and other renowned colleges.

Education and skill up-gradation have become the corner stones of the Government

Policy in the State. The State Government is providing thrust on vocational training. It

has opened 289 polytechnic institutes throughout the State, in addition to setting up of

1,507 Industrial Training Institutes (ITIs). Assistance is also provided to private

players for setting up training institutes within the State.


66

3.3 Development Concerns of Karnataka

The State has been on the path of development and has also been taking several

initiatives for all-round development. There are certain developmental concerns which

need attention. Based on the literature survey for the study, the key concerns facing

the State today are, briefly:

• Inequitable development: The contribution to the GSDP by district reveals

that five districts, namely, Bangalore Urban, Belgaum, Mysore, Bellary and

Dakshina Kannada contribute to over 50 per cent. Even in industrial

development, 70 per cent of the large and medium scale industrial units are

concentrated in five districts, namely, Bangalore Urban, Bangalore Rural,

Mysore, Tumkur and Dakshin Kannada. Thus, there are wide disparities in

development and most people in search of jobs and better prospects flock

around these districts only. Certain districts in Karnataka such as Gadag,

Bidar, Koppal, Yadgir, and Chamarajanagar are mostly dependent on

agriculture and allied activities and large scale industrialization is yet to

penetrate these districts. Thus, the State is faced with the challenge of creating

equitable and sustainable development for all.

• Acute water shortage: Many districts in the State face acute water shortages

due to the dependence on the monsoons and lack of good rainwater harvesting

techniques and structures. As water is a raw material for the agriculture and

allied activities as well as industrial units, the districts face the challenge of

how to optimize the low groundwater availability for consumption purposes as

well as for economic purposes. The dry districts face the challenge of

development and are not able to attain their growth potential, despite the

availability of other natural resources.

• Low motivational level: Many companies report of low motivational levels in

people. It was reported that people do not have the willingness to pick up

work. There is also lack of industrial discipline amongst its workforce. There

is unwillingness to work at shop-floor. There is preference to work in service

sector as compared to industrial sectors.


67

• Lure for city life: Based on media feedback, youth, especially the educated

youth, have very high lure for city life and prefer to work only in the city

centres such as Bangalore, Mysore, and Hubli even if it requires permanent

migration or even daily commuting of long hours. This results in

unavailability of skilled workforce in most districts with the exception of a

few like Bangalore Urban, Bangalore Rural, Mysore, and some of the other

districts in the southern Karnataka.

3.4 Horticulture of Karnataka and the Study Districts

Among the agricultural crops, Karnataka accounts for 59 per cent of the

country’s coffee production and 47 per cent of the country’s ragi production. The state

is fifth in oilseed production. As for fruits and vegetables, it ranks 3rd and 6th,

respectively among the states of the Indian Union.

The history of the Karnataka State Department of Horticulture can be traced

back to as far as 1856, the time when Lalbagh was made a Government Botanical

Garden, a wholly Government establishment. However, the Department of

Horticulture came into existence as an independent Department only in 1963.

Recognizing the role of Horticulture in the development of the state, the erstwhile

Government of Mysore elevated the Department to the status of a major Department

of the Government in 1965. Karnataka was thus the first state in the country to have a

separate Department of Horticulture. The pioneering efforts of Karnataka in focusing

on horticultural development is evident in the fact that the 'All India Horticultural

Development Conference' held at Simla in 1966 passed a resolution to emulate the

pattern of the Department of Horticulture in Mysore State throughout India. Today,

the Department of Horticulture is engaged in the overall development of horticulture

in the state and is striving hard to help the growers of horticultural crops in the state to

achieve the fullest yield potential and to maximize profits.

The development of horticulture has been carried out on a scientific basis

since early decades of the present century. The then Mysore State Government gave

enough impetus by establishing the Department of Government Gardens in 1956, and

later in 1961 it was upgraded as the full-fledged Department of Horticulture.

Karnataka is one of the horticulturally progressive states in India. It ranks 6th in the

area under both fruits and vegetables’ production, it ranks 3rd in fruits and 6th in


68

vegetables, in India. As per the statistics of the year 1995-96, the total area under

horticulture crops in Karnataka was 1.35 million ha, with a production of over 12.0

million tonnes. Fruits have been grown on an area of 0.25 million ha, with the

production of 4.4 million tonnes. Similarly, vegetables have been grown on an area of

0.23 million ha, with the production of 4.7 million tonnes. The total value of the

horticultural produce is worth Rs. 45,000 million a year.

Karnataka is the first state in India to set up a separate Horticulture

Department for undertaking systematic horticultural activities. The state has

implemented a number of schemes for the all-round development of horticulture in

the state. The budgetary provision for horticultural development in the state is steadily

increasing every year. For the year 1996-97, the budget provision was Rs. 718.1

million, inclusive of the Central assistance. Area under horticultural crops and

production in the state has been increasing at an annual average rate of 3.5 per cent in

the last 35 years. In fruits and vegetables, the average productivity in the state has

been far higher in horticulture. It has been considered necessary to study one of the

NGOs to understand its role in horticultural development in the state. The study

concentrates on the Mysore Horticulture Society, as it is the oldest of the three and it

is a service organization registered under the Charitable Endowment Act unlike the

other two, which are commercial and governed by the Cooperative Society rules as

they are registered under the Cooperative Societies Act.

The State accounts for 14.60 per cent of the total cultivable area of the

country. Of the 1.84million ha of the total horticultural cropped area, 46.35 per cent

comes under plantation crops; 21.95 per cent under vegetables; and 20.53 per cent

under fruits. The total horticultural production in the State during the year 2012-

13figures at 14.96million metric tonnes. The production figures stands at 6.35million

metric tonnes or 42.43 per cent with respect to fruit crops and 7.22 million metric

tonnes or 48.27 per cent with respect to vegetable crops. In recent years, due to the

introduction of the high yielding varieties through the improved technology and also

commercialization, the productivity of horticultural crops has improved. But, due to

urbanisation, failure of rains during the rabi and summer seasons, and change of

cropping pattern, there has been a decrease in the total area and production under

horticultural crops compared to 2011-12. Efforts have been made in recent years by


69

the Government of Karnataka to boost agricultural exports, mainly horticultural

produces like fruits, vegetables and flowers, through an effective Agricultural Policy.

According to a horticultural database of 2013, published by the National

Horticulture Board, the total area and production of horticultural crops is 23.7million

hectares and 268.85million metric tonnes in India. Karnataka State has occupied the

3rdplace in respect of total area with 1.94million hectares contributing to 8.2 per cent

and 7th in respect of total production with 19.67million metric tonnes, contributing 7.3

per cent of the production in the country. The State has occupied the 3rd place in fruit

crops with an area of 0.4million hectares and production of 6.62 million tonnes and

the 9th place in vegetable crops with 0.44million hectares of area and 7.84 million

tonnes of production.

Table 3.1 shows the area, production, yield and monetary value of the

horticultural crops in the State for the latest year for which data are available (2012-

13). The total area under horticultural crops for the year was 1.84 million hectares

with a total production of 14.96 million tonnes, with a unit yield of 8.15 tonnes/ha.

The value of the horticultural products for that year was a whopping Rs. 2,974.1

million. Whereas the fruit crops account for only 20.53 per cent of the area under the

horticultural crops, they account for 42.43 per cent of the production of the

horticultural crops and 34.98 per cent of the monetary value of horticultural

production. On the other vegetable crops occupy 21.95 per cent of the horticultural

area of the state, producing 48.27 per cent of the tonnage and fetching 25.46 per cent

of the value of horticultural products. The two groups of crops of our concern in the

study, fruits and vegetables, account thus for nearly 43 per cent of the total area under

cultivation of horticultural crops and more than 90 per cent of the production.

However, they together account for more than 60 per cent of the value of all

horticultural products of the State. But plantation crops alone occupy 46.35 per cent

of the area under horticultural crops, turning in only 3.57 per cent of the tonnage but

29.65 per cent of the value of horticultural products (Figure 3.2).


70

Table 3.1: Area, Production, Yield and Value of Horticultural Crops in Karnataka State

2012-13

Groups of Crops Area

‘000 ha

Production in million

tonnes

Yield Tonnes/ ha

Value in million Rupees

Area % Production

% Value

%

Fruit Crops 377 6.35 16.85 1,040.2 20.53 42.43 34.98

Vegetable Crops 403 7.22 17.91 757.3 21.95 48.27 25.46

Spice Crops 171 0.62 3.61 209.7 9.31 4.12 7.05

Plantation Crops 851 0.53 0.63 882.4 46.35 3.57 29.67

Commercial Flowers 30 0.22 7.33 81.6 1.63 1.46 2.74

Medicinal Plants 2 0.004 1.64 1.3 0.11 0.03 0.04

Aromatic Plants 2 0.02 11.23 1.6 0.11 0.12 0.05

State Total 1,836 14.96 8.15 2,974.1 100.00 100.00 100.00

Source: Department of Horticulture, Government of Karnataka 2013.

Figure 3.2

Spices account for 9.31 per cent of the area, 4.12 per cent of the production

and earn 7.05 per cent of the value of horticultural products. All other groups of crops

are rather minor horticultural crops but are essential for human health and pleasures.

Commercial flowers for example are grown in 30,000 ha, producing 0.22 million


71

tonnes of flowers, fetching Rs. 81.6 million. The yield is however 7.33 tonnes / ha.

Aromatic plants are the last in importance in all aspects of production.

Average yield of all horticultural crops of the State is 8.15 tonnes / ha while

the yield of vegetable crops is 17.91 tonnes/ha, fruit crops is 16.85 tonnes/ha,

aromatic plants is 11.23 tonnes/ha, commercial flowers is 7.33 tonnes/ha, spices is

3.61 tonnes/ha, and medicinal plants is 1.64 tonnes/ha. The plantation crops have

however registered the lowest average yield of 0.63 tonne/ha. .

3.5 Export Performance of Horticultural Commodities of Karnataka

Among the horticultural exports, coffee products topped the list with higher

returns, followed in order by silk products, cashew and cashew products, agricultural

and processed food products, spices, gherkin, and Bangalore rose onion in 2007-08.

But this order has seen some changes in the following years and in the year 2012-13

the order has been that of coffee products, agricultural and processed food products,

spices, cashew and cashew products, gherkins, silk products, and Bangalore rose

onion. Throughout the period however flowers has remained unchanging in their

value of returns, at 500 million rupees every year for the six years of study. Coffee

products fetched Rs. 13.1 billion in 2007-08, Rs. 21.84 billion in 2010-11 with very

small increases in the intervening years but have risen to Rs. 35.34 billion in 2012-13.

The CAGR computed for the coffee products has yielded the third largest of the

values for the products being discussed at 23.88 per cent. Silk products have shown a

considerable decline during the period, from Rs. 9.12 billion in 2007-08 to Rs. 6.54

billion in 2012-13 (Table 3.2). The CAGR for the products is however -7.05 per cent,

for the period under discussion.


72

Table 3.2: Export Performance of Horticultural Commodities of Karnataka

State (in Million Rupees)

COMMODITY 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13

Coffee Products 13,076.0 15,790.5 14,231.0 21,840.4 31,733.1 35,343.8

Silk Products 9,121.2 8,968.7 7,015.6 6,778.1 6,733.1 6,536.9

Cashew and Cashew Kernels

5,270.5 6,384.8 6,441.8 5,867.6 8,822.1 8,469.9

Agricultural and Processed Food

4,155.1 7,123.4 6,625.7 6,703.0 7,629.4 11,488.5

Spices 2,451.5 4,792.5 3,817.3 4,497.5 7,001.1 9,046.3

Bangalore Rose Onion

600.0 650.0 750.0 900.0 1,000.0 1,500.0

Gherkins 2,445.0 2,445.0 3,000.0 4,500.0 5,000.0 7,500.0

Flowers 500.0 500.0 500.0 500.0 500.0 500.0 Total Agricultural Exports

37,619.3 46,654.9 42,381.4 51,586.6 68,418.8 80,385.4

Total Exports 1,227,034.3 1,342,553.7 1,428,714.1 1,655,230.4 2,188,373.9 2,583,685.0

% Agricultural Exports In Total Exports

3.06 3.47 2.96 3.11 3.12 3.11

Source: Reports of the Department of Horticulture of Karnataka 2012-13.

Note: CAGR: Coffee Products 23.88 per cent, Silk Products -7.05 per cent, Cashew and Cashew Kernels 9.76 per cent, Agricultural and processed foods 16.36 per cent, Spices 25.07 per cent, Bangalore Rose Onion 18.89 per cent, Gherkins 26.24 per cent, Flowers 0.0 per cent, Total Agricultural Exports 15.82 per cent, andTotal Exports 16.47 per cent

Cashew and cashew kernels on the other hand have shown considerable

increases over the years despite a steep fall in 2010-11, from Rs. 5.27 billion in 2007-

08 to Rs. 5.87 billion in 2010-11 and to Rs. 8.47 billion in 2012-13 (CAGR = 9.76 per

cent. Agricultural and processed food products have shown a considerable increase in

returns over the years although some decreases in the intervening years to reach Rs.

11.49 billion in 2012-13 from Rs. 4.16 billion in 2007-08. The CAGR for agricultural

and processed food products is 16.36 per cent. Gherkins during the period has shown

a progressive increase from Rs. 2.45 billion in 2007-08 to Rs. 7.5 billion in 2012-13.

Gherkins as exported crop has registered a compounded annual growth rate of 26.24

per cent, which the largest rate among the products exported from Karnataka.

Spices on the other hand have shown a mixed trend of increase-decrease-

increase over the six year periods, from Rs. 2.45 billion in 2007-08 to Rs. 4.79 billion

in the following year to Rs. 3.82 billion in the next year to Rs. 7 billion in 2011-12

and Rs. 9.05 billion in 2012-13. The spices have shown a compounded annual growth


73

rate of 25.07 per cent, which is the second largest of the values computed for the

products under discussion. Total exports has improved greatly in the six years for

which data are made available for the study: from 1,227 billion rupees in 2007-08 to

as much as 2,584 billion rupees in 2012-13. The CAGR for the total exports has been

of the order of 16.47 per cent. The CAGR for the total agricultural exports during the

same period of six years has been of the order of 15.82 per cent, from more than 37.62

billion rupees in 2007-08 to 80.39 billion rupees. The percentage of agricultural

exports to total exports has however been around 3 per cent, with 3.06 per cent in

2007-08 to around 3.11 or 3.12 per cent in the last three years, 2010-11 to 2012-13.

Flowers as an exported product has not registered any increase in value of products,

remaining thus at a constant of Rs. 500 million every year. Thus there is absolutely no

increase and thus the CAGR is 0.0 per cent. The discussion so fartells us that the State

of Karnataka has exported mostly industrial and services (tertiary) products than

agricultural or horticultural products.

3.6 Horticulture in Bangalore Urban District

Bangalore Urban district is in fact the city of Bengaluru (Figure 3.3), and it

has already been introduced earlier in the chapter. In 2008-09, the district had the

largest Gross District Domestic Product (GDDP) in Karnataka at Rs 1,048,115

million (34 per cent of the Gross State Domestic Product). In terms of per capita

GDDP it is ranked first amongst the 30 districts at Rs 146,283, and this is

considerably higher than the State average.

Of the total area of 217,410 ha of the district, 5,055 ha (2.3 per cent) is

covered by forests, 115,436 ha (53.1 per cent) is classified as non-agricultural lands,

90,928 ha (41.8 per cent) as agricultural lands and the remaining (2.8 per cent) as

other uncultivated land. Over 58 per cent is the net sown area (cultivated land).

Agriculture is mainly dominated by cultivation of ragi and paddy under food crops

and oil seeds and fruits under commercial crops.

In 2009-10, Bangalore Urban district had 411 large and medium scale

industrial units, in multiple sectors. These included Multi-National Companies

(MNCs) and Indian Multinationals including companies such as IBM, GE, Philips,

Infosys, Wipro, Biocon, Ace Designers, L&T Komatsu, and UB. End products

manufactured included auto components, castings, electrical motors, textiles, food and


74

beverages, pharmaceuticals, biotechnology products, aerospace components,

perfumes, flavours, chemicals, and metal components.

Bangalore Urban also has 74,282 Small Scale Industries (SSIs), employing

690,972 persons, during 2010- 2011, and Rs 412,130million were invested in Small

Scale Industries in the district alone. The district has fifteen industrial areas. The

district also has fifteen industrial estates, of this, 347 plots of land has been allotted so

far.Bangalore Urban district has been attracting significant investments from

industrial players. During the Global Investors Meet of 2010, 36 Memorandums of

Understanding (MoUs) amounting to Rs 57,426 million were signed for the district.

These were estimated to employ 91,326 persons.

In 2011, Bangalore Urban district had a population of 9.58 million, 15.6 per

cent of the State population. Majority of the population (90 per cent) is in Bengaluru

City, followed by Anekal, Bangalore North, Bangalore South and Bangalore East sub-

districts. While 69.14 per cent of the population in the district is in working-age group

of 15 to 64 years, about 39.3 per cent is actually working, that is, it is the work

participation rate.

Figure 3.3: Bangalore Urban District


75

The literacy rate is 88.48 per cent, which is considerably higher than the State

average of 75.6 per cent. Male literacy at 83 per cent is significantly higher than

female literacy rate at 76 per cent. Of the 30 districts, BUD ranks first in the Human

development Index in the state of Karnataka with an index of 0.753 against the state

average of 0.65; similarly, it ranks first on Gender Development Index (GDI), with a

value of 0.731 against the state average of 0.637. Most of the population (90+ per

cent) lives in urban areas. The district also has a huge inflow of migrating population

from other districts of the State and from the country owing to the opportunities

created.

Bangalore Urban district is teeming with manufacturing clusters including

Peenya, Whitefield, Bommasandra, Jigani, Attibele, and Kadugodi-Sadaramangala.

Peenya is the largest industrial cluster in Asia with 5000+ Medium, Large and Small

Scale industries employing more than half a million people. Some of the prominent

manufacturing companies in Bangalore Urban District are Bosch, L&T Komatsu,

Kirloskar, Escorts, Avasarulu Automotions, BHEL, BEML, BEL, HMT, Huwaei

Technologies, GE, Airbus Engineering Centre, Himatsingka Seide, and Ace

Micromatic Group. The city is emerging as the Aerospace hub of India, India’s only

aircraft manufacturer HAL is located in Bengaluru and four of its six R&D centres are

also in the district. An Aerospace SEZ spreading over 105 ha has been established

near Bengaluru International Airport.

Apart from manufacturing and services, the Bangalore Urban district is

involved in considerable agricultural production of paddy, maize, rice, horsegram, oil

seeds, banana, grapes, pomegranates, and papaya. Anekal taluk of Bangalore Urban is

called as the ‘ragi bowl’ of the state. The district also enjoys a considerable reputation

in food processing, companies such as Pepsico India, Britannia, Parle, Wrigleys, and

United Breweries.

The district has 12,755 ha under horticultural crops. For a largely urban

district, this area appears quite large, but there are agricultural lands which are largely

set aside for horticultural crops even as some part of them are dedicated to growing

food and non-food crops. The horticultural production is 161,564 tonnes with a yield

of 12.67 tonnes / ha. The produce has been sold in the markets for Rs. 21.01 million

(Table 3.3). Within the district, there are spatial variations in that Anekal taluk/town


76

has the largest of the area under horticulture among the urban divisions (3,582 ha)

followed by Bangalore North (3.426 ha), Bangalore East (2,879 ha) and Bangalore

South (2,868 ha). However, the variations in production are quite different, in the case

of Bangalore South (36,148 tonnes) as against Bangalore East (33,033 tonnes).

Anekal town (49,372 tonnes) and Bangalore North (43,010 tonnes) have higher

production levels in accordance with the acreage under horticultural crops. As for the

yield / ha (productivity), Anekal town has 13.78 tonnes/ha, followed in order by

Bangalore South (12.60 tonnes/ha), Bangalore North (12.55 tonnes/ha) and Bangalore

East (11.47 tonnes/ha).

Table 3.3: Area, Production, Yield and Value of Horticultural Crops in Bangalore Urban District 2012-13 (as on March 31)

Urban Division Area in ha Production in

tonnes Yield in

tonnes/ha Value in

Rs. Million

Anekal Town 3,582 49,373 13.78 6.34

Bangalore North 3,426 43,010 12.55 4.58

Bangalore South 2,868 36,148 12.60 4.93

Bangalore East 2,879 33,033 11.47 5.16

District Total 12,755 161,564 12.67 21.01


Yet again, there are differential variations in regard to monetary value of the

horticultural produce sold from Bangalore Urban district, in the order of Rs. 6.34

million for Anekal town, Rs. 5.16 million for Bangalore East, Rs. 4.93 million for

Bangalore South, and Rs. 4.53 million for Bangalore North. Thus, there is no direct

and positive relations between area under cultivation, production, productivity and

monetary value of the produce.

3.7 Horticulture in Bangalore Rural District

Bangalore Rural was formed as a separate district in 1986 with the division of

Bangalore district into Bangalore Rural and Bangalore Urban. It has a total land area

of 2,259 km2, which is 1.17 per cent of the total State area (Figure 3.3). It is bordered

on the northwest by Tumkur district, on the northeast by Kolar district, on the south

by Bangalore Urban district, Ramnagara district and Krishnagiri district of Tamil

Nadu. It is sub-divided into four sub-districts and has 951 inhabited villages. A

majority of its population at 73 per cent lives in rural areas. Agriculture is the main


77

occupation, employing 59 per cent of the labour force (Census 2001). The remaining

is in household industry (5 per cent) and other workers at 36 per cent. Paddy, ragi,

maize, tur, oil seeds, fruits, and vegetables are the key crops grown in Bangalore

Rural district. Sericulture is also a primary activity in the district with 6,509 ha under

mulberry and 6,029tonnes of cocoon (2007). Animal husbandry is done by most

farmers. The district has six industrial areas, namely, Dabospet, Doddaballapura,

Hoskote, Sompura, Nelamangala and Devanahalli; in addition, the district has seven

industrial estates in the same geography.

According to Census 2011, Bangalore Rural district has a population of 987

thousand, 1.67 per cent of the State population. A majority of this population (32 per

cent) is concentrated in Doddaballapura sub-district, followed by Hoskote sub-district

at 26 per cent, Devanahalli sub district at 22 per cent and Nelamangala sub-district at

20 per cent. While 65 per cent of the population in the district is in working-age group

of 15 to 64 years, about 47.4 per cent is actually working, that is, it is the work

participation rate.

Figure 3.3: Bangalore Rural District


78

The literacy rate is 78.3 per cent, which is slightly higher than the State

average of 75.6 per cent, and higher than All-India average of 74 per cent. Male

literacy at 82.44 per cent is significantly higher than female literacy rate at 70.73 per

cent. Of the 30 districts, Bangalore Rural ranks 6thon Gender Development Index

(GDI), with a value of 0.64 and 6th on Human Development Index (HDI) with a score

of 0.653. Most of the population (73 per cent) lives in rural areas.

Table 3.4 shows the area, production, productivity, and monetary value of

horticultural produce for the district Bangalore Rural. A total of 26,764 ha of land is

under horticultural crops, producing 330,911 tonnes at an average of yield of 12

tonnes / ha while the entire produce has been sold for Rs. 55.67 million, more than

two and a half times that of the urban district. Bangalore Rural district show even

more within district spatial variations in all of the aspects discussed here. Such

differences could be attributed to geography as well as to those of the geographical

factors controlling the growth and development of horticulture. Among the 4 taluks,

Doddaballapura has the largest of the area (8,723 ha), followed closely by Hosakote

taluk (8,346 ha) but rather distantly by Nelamangala taluk (5,532 ha) and Devanahalli

taluk (4,163 ha). Distinctly, the production of horticultural crops shows a direct and

positive relation to the area under cultivation in each of the four taluks: In a way, the

production shows a clear affiliation to the area under production, that is, taluks with

larger areas produce larger quantities and vice versa: Doddaballapura 114,202 tonnes,

Hosakote 99,529 tonnes, Nelamangala 63,263 tonnes and Devanahall 53,917 tonnes.

The variations in the yield is however in a different order: Doddaballapura 13.09

tonnes/ha, Devanahalli 12.95 tonnes/ha, Hosakote 11.93 tonnes/ha and Nelamangala

11.44 tonnes/ha. In productivity thus within-district variations are rather different,

defying logic.

Table 3.4: Area, Production, Yield and Value of Horticultural Crops in Bangalore Rural District 2012-13 (as on March 31)

Taluk Area in ha Production in tonnes Yield in tonnes/ha Value in Rs. Million

Doddaballapura 8,723 114,202 13.09 17.42

Devanahalli 4,163 53,917 12.95 10.85

Hosakote 8,346 99,529 11.93 16.38

Nelamangala 5,532 63,263 11.44 11.02

District Total 26,764 330,911 12.00 55.67 Source: Department of Horticulture, Government of Karnataka 2013.


79

The direct and positive within district relations in regard to monetary value

and production is rather clear, with higher production fetching higher returns and vice

versa: Doddaballapura taluk has sold its horticultural produce for Rs. 17.4 million,

Hosakote taluk for Rs. 16.38 million, Nelamangala taluk for Rs. 11.02 million and

Devanahalli taluk for Rs. 10.85 million.

3.8 Horticulture in Chikkaballapura District

Chikkaballapura district is one of the newly formed districts of Karnataka. It

was carved out of Kolar district in 2007. It has six sub-districts: Bagepalli,

Chikkaballapura, Chintamani, Gudibanda, Gauribidanur and Sidlaghatta (Figure 3.4).

Main economic centre of the district is Chikkaballapura sub-district, which is just 50

km from the State capital Bengaluru. The district has a total land area of 4,254 km2,

which is 2.2 per cent of the total State area. It is bordered by Kolar, Bangalore Rural

and and Anantapur district of Andhra Pradesh. It has a total population of 1.25

million, which is just 2.0 per cent of the total population of Karnataka. Majority of the

population at 80.8 per cent lives in rural areas. Agriculture is the main occupation,

employing 70 per cent of the labour force (Census 2001). The remaining is in

household industry (3 per cent) and other workers at 27 per cent.

The district is the gateway to North Karnataka due to origin of several

National Highways and is a regional transport and educational hub. It is rich in

agriculture, horticulture and livestock resources. It is a producer of grapes and silk.

Sericulture is one of the key economic activities of the district. It is mainly

concentrated in Sidlaghatta taluk. People of the district travel to the State capital on a

daily basis for their employment and livelihood. Bengaluru is also the first preference

for the district youth. The district, however, has not benefited much in terms of

industrial development due to serious shortage of water.


80

Figure 3.4: Chikkaballapura District

The literacy rate is 70.1 per cent, which is an 11 per cent improvement from

its literacy rate of 59.2 per cent in 2001. The 2011 literacy rate is still lower than the

State average of 75.6 per cent. Male literacy at 78.4 per cent is higher than female

literacy rate at 61.5 per cent. Most of the population (80.8 per cent) lives in rural

areas. The district has a total workforce of about 600 thousand. Of this, 41 per cent

are cultivators, 29 per cent are agricultural labourers, 3 per cent are workers in

household industry and 27 per cent are other workers. In 2008-09, Chikkaballapura

district had the fourth smallest Gross District Domestic Product (GDDP) in Karnataka

at Rs 41,871.6 million (1.4 per cent of the Gross State Domestic Product). In terms of

per capita GDDP, it ranked 21stamongst the 30 districts at Rs 33,247. The economy is

pre-dominantly service based, with service sector’s share in GDDP at 46 per cent in

2008-09. This is followed by primary sector at 33 per cent and secondary sector at 21

per cent.

Of the total area of 4,254 km2 in the district, over 39 per cent is the net sown

area. Agriculture is mainly dominated by cultivation of ragi and maize under food

crops and groundnut under non-food crops. The district is mainly agrarian and very


81

few industries have come up in the district, mainly due to acute scarcity of water. At

the end of 2010, the district had only two large and medium scale industrial units,

employing 632 persons. These are Raymond Limited (readymade garments) and ACC

Limited (cement). However, several Small Scale Industries (SSIs) are present in the

district, mainly in sectors such as textiles and job works and repairs. In March 2010,

the district had 224 SSIs, employing over 1,000 persons. The district has two

industrial areas and four industrial estates.

The district is beginning to attract industrial investment. Currently two

projects are under implementation. During the second GIM, 13 MoUs / Expressions

of Interest / Registrations of Interest happened for the district. These have a proposed

investment of Rs. 272,230 million. These are expected to provide direct employment

for over 200 thousand persons.



administration and other services. Of all the services, the key services in the district

are of ‘real estate, ownership of dwellings, business and legal services’ at 11.9 per

cent of GDDP, followed by public administration at 10.2 per cent.

Table 3.5 shows details on area, production, yield and value of horticultural

crops in the district of Chikkaballapura by taluks. The area under horticultural crops

in the district in the year 2012-13 was 48,590 ha, of which nearly 56 per cent of the

area was accounted for by Chinthamani (32.2 per cent) and Chikkaballapura (23.6 per

cent) taluks. The other 4 taluks accounted for more than 44 per cent of the area under

horticultural crops. The total production of horticultural crops of the district was

576,574 tonnes, of which 28.6 per cent (164,991 tonnes) was accounted for by

Chinthamani taluk, 25.1 per cent (144,750 tonnes) by Chikkaballapura taluk, and 19.2

per cent (110,650 tonnes) by Gowribidanur taluk. Thus, the three taluks together

account for nearly 73 per cent of the production, leaving the rest of 27 per cent for the

other three taluks of Shidlaghatta (85,157 tonnes), Bagepalli (48,314 tonnes), and

Gudibande (22,712 tonnes). The average yield per ha of land under horticultural crops

for the district is 11.87 tonnes but the taluks show up differential yields with

Gudibande recording the highest yield of 13.93 tonnes/ha, Shidlaghatta recording

12.90 tonnes/ha, Chikkaballapura 12.65 tonnes/ha, Gowribidanur 12.12 tonnes/ha,


82

Bagepalli 11.64 tonnes/ha, and Chinthamani bringing up the rear with 10.55

tonnes/ha.

Table 3.5: Area, Production, Yield and Value of Horticultural Crops In Chikkaballapura District 2012-13

Taluk Area

in ha

Production

in tonnes

Yield in

tonnes/ha

Value in

Rs. Million

Chinthamani 15,635 164,991 10.55 31.57

Chikkaballapura 11,447 144,750 12.65 19.11

Gowribidanur 9,127 110,650 12.12 7.70

Shidlaghatta 6,601 85,157 12.90 4.02

Bagepalli 4,150 48,314 11.64 3.00

Gudibande 1,630 22,712 13.93 1.91


The monetary value of production for the entire district is Rs. 67.32 million, of

which Chinthamani taluk fetches nearly 47 per cent of the returns (at Rs. 31.57

million) followed rather distantly by Chikkaballapura taluk fetching 28.4 per cent of

the returns (at Rs. 19.11 million). The two taluks alone bring more than three-fourths

(75.4 per cent) of the returns from the horticultural crops. Taluks such as

Gowribidanur (Rs. 7.7 million from 9,127 ha producing 110,650 tonnes) are unable to

bring returns in accordance with the area under horticultural crops.

This means that the taluks are differently endowed in resources that such

differences in returns are bound to occur. There is not always direct and positive

relationship between area and production or area and returns. The other three taluks

have smaller returns totalling Rs.8.93 million amounting to 13.3 per cent of the

district income from horticultural crops.

3.9 Horticulture in Kolar District

Kolar district is known for milk, gold and silk. This is home to the erstwhile

Kolar Gold Fields (KGF) and the Kolar-Chikkaballapura Co-operative Milk Union

which has one of the highest milk production in Karnataka. The district is bounded by

the Bangalore Rural district on the west, Chikkballapura district on the north, Chittoor

District of Andhra Pradesh on the east and on the south by Krishnagiri and Vellore

districts of Tamil Nadu. Kolar has 5 taluks: Kolar, Bangarapet, Mulbaigal,


83

Srinivasapura and Malur (Figure 3.5). The headquarters of the district is Kolar town,

which is about 80 km from Bengaluru.

Figure 3.5: Kolar District

The district has an area of 3,969 km2. The economy is agrarian with paddy

being the main crop. Kolar has rich potential to cultivate vegetables for commercial

uses and about 75.33 per cent of the population is engaged in rural activities.As of

2011, Kolar district has a population of 1,540,231 with a density of population of 384

persons per km2. Its share in total population of Karnataka is at 2.5 per cent. The

literacy rate is 74.3 per cent, marginally lower than the Karnataka average of 75.6 per

cent.

Kolar was abundant with gold deposits, and the mines were closed down in

2003 after having been in operation since the 1850s due to the rising costs of mining.

Kolar town and the taluks of Bangarapet and Malur reap benefits because of the

proximity to Bengaluru and Chennai. Bangarapet is a major railway junction through

which trains to and from Karnataka, Andhra Pradesh and Tamil Nadu pass. Bharat

Earth Movers Limited (BEML) is also present in the taluk, because of which the

transport infrastructure is well-developed. Malur is an industrial hub for the district.


84

One of Kolar’s biggest constraints to development is the acute water scarcity the

district faces, with drip irrigation being utilized for the cultivation of crops.

The services include construction, wholesale and retail trade, hotels and

restaurants, transport, storage and communication, banking and insurance, real estate,

public administration and other services. Services account for 41 per cent of GDDP

and the chief contributors are trade and transport with about 17 per cent and 9.4 per

cent, respectively.

As of Census 2011, Kolar district had a total population of 1.54 million, which

is 4.4 per cent of the State population. Within the district, majority of the population

at 30 per cent is concentrated in Bangarapet. This is due to the taluk being a hub and

the presence of BEML and the erstwhile Kolar Gold Fields in which many of the

locals were employed. This is followed by Kolar taluk at 25 per cent, Mulbagal at 17

per cent, Malur at 15 per cent and Srinivasapura at 13 per cent. Malur, though an

industrial hub, has lower population due to it being only an industrial centre and other

infrastructure being not very well developed.

The literacy rate was 74.3 per cent, which was slightly lower than the State

average, but close to the All-India average. Male literacy at 82.05 per cent is

significantly higher than female literacy rate at 66.45 per cent. Of the 30 districts,

Kolar ranks 16thon Gender Development Index (GDI), with anindex of 0.613.

A majority of the population at 71 per cent lives in the rural areas.The district

has a total workforce of about 704,000 persons. Of this, 33 per cent are cultivators, 25

per cent are agricultural labourers, 4 per cent are workers in household industry and

38 per cent are other workers. In 2008-09, Kolar district had the Gross District

Domestic Product (GDDP) at Rs 60,906.5 million (1.98 per cent of the Gross State

Domestic Product). In terms of per capita GDDP, it ranked 12th amongst the 30

districts at Rs 40,062. The district is pre-dominantly a service economy, with service

sector’s share in GDDP at 41 per cent in 2008-09. This was followed by primary

sector at 30 per cent and secondary sector at 29 per cent.

Of the total area of 374,966 ha, about 48 per cent is the net sown area.

Agriculture is mainly dominated by ragi and paddy under food crops. Agro-based

processing represents the biggest potential for the district with Srinivasapura taluk


85

mangoes having a distinct taste. As of March 2012, Kolar had 4 medium scale

industries employing 362 people and two large scale industries employing about

13,000 people. The large scale employment is dominated by BEML. The district also

has 8,039 Small Scale Industries (SSIs), which employ about 49,903 persons. Textiles

employ the maximum number of people: 10,562. This is followed by chemical and

engineering units that are scattered across Malur and Bangarapet taluks. The

maximum number of small units is dedicated to brick making. The district has 5

industrial areas and 5 industrial zones. These are mostly located in Kolar, Bangarapet

and Malur taluks. The other two taluks are not earmarked for industrial development.

In the GIM 2010, 4MoUs were signed which had a proposed investment of about Rs

3,400million. These were mainly of agro based processing industries.

Kolar district is attracting significant investments from industrial players due

to its locational advantage. During the Global Investors Meet (GIM) held in 2012 in

Karnataka, Memorandums of Understanding (MoUs) have been signed in the arena of

aerospace, automobiles, engineering and manufacturing. The proposed investment is

of the order of Rs. 86,340million and has proposed employment opportunities for

17,810 people.

The area under horticultural crops in Kolar district in 2012-13 was 108,932 ha

with nearly 57 per cent of the area accounted for by Mulabagilu (29.2 per cent; 31,854

ha) and Srinivaspura (27.6 per cent; 30,059 ha) taluks of the district. Among the other

three taluks, Kolar accounted for 16.1 per cent (17,500 ha), Malur for 14.1 per cent

(15,323 ha) and Bangarapet for 13 per cent (14,197 ha). The total production of the

district was 1.65 million tonnes (Table 3.6) with Mulabagilu taluk producing more

than half a million tonnes (511,728 tonnes)in accordance perhaps with the area under

horticultural crops there, followed by Kolar taluk with 334,594 tonnes (20.2 per cent),

Srinivaspura taluk with 307,964 tonnes (18.6 per cent), Malur taluk with 274,924

tonnes (16.6 per cent), and Bangarapet taluk with 223,144 tonnes (13.5 per cent). In

none of these four taluks, there is any support for direct and positive relations between

area and production. Resource endowments of the lands in these taluks are so

different that the production is very different as well, bearing no direct relation to the

amount land under horticultural crops.


86

Table 3.6: Area, Production, Yield and Value of Horticultural Crops In Kolar

District 2012-13 (as on March 31)

Taluk Area

in ha

Production

in tonnes

Yield in

tonnes/ha

Value in

Rs. Million

Bangarapet 14,197 223,144 15.72 22.08

Kolar 17,500 334,594 19.12 28.17

Malur 15,323 274,924 17.94 21.23

Mulabagilu 31,854 511,728 16.07 48.55

Srinivaspura 30,059 307,964 10.25 46.35

District Total 108,932 1,652,354 15.17 166.39


But there is support that the production does determine directly and positively

the returns from it, for the procurement / sales prices are the same almost everywhere

within the district: so, the larger the produce, the greater is the return from them. The

district has accounted for a monetary value of Rs. 166.39 million for the 1.65 million

tonnes of produce for the year 2012-13. The share of Mulabagilu taluk has been 29.2

per cent (Rs. 48.55 million), that of Srinivaspura taluk 27.9 per cent (Rs. 46.35

million), Kolar taluk 16.9 per cent (Rs. 28.17 million), Bangarapet taluk 13.3 per cent

(Rs. 22.08 million) and Malur taluk 12.8 per cent (Rs. 21.23 million). The average of

the yields for horticultural crops in the district is 15.17 tonnes/ha with every taluk

except Srinivaspura taluk exceeding it, as follows: Kolar 19.12 tonnes/ha, Malur

17.94 tonnes/ha, Mulabagilu 16.07 tonnes/ha, Bangarapet 15.72 tonnes/ha and

Srinivaspura 10.25 tonnes/ha.

3.10 Horticulture in Ramanagara District

Ramanagara district was carved out of Bangalore Rural district in 2007. It has

four sub-districts or taluks: Channapatna, Kanakapura, Magadi and Ramanagara

(Figure 3.6). The district is well known for its silk market, for which it is also known

as the ‘Silktown’.The district is also known for its many industrial units, including

Toyota and Coca-Cola. Channapatna taluk is known for its traditional, wooden toys.

The district has a total land area of 3,559 km2 which is 1.86 per cent of the total State

area. Over 47 per cent of the district area is net sown area and agriculture is the main

occupation of the people. Ragi is the key crop.


87

Figure 3.6: Ramanagara District

The district benefits from its proximity to Bengaluru. Over 5,000 to 6,000

people commute from Ramanagara to Bengaluru on a daily basis for work. This is

also home to Wonder La, an amusement park that attracts visitors from Bengaluru and

nearby areas. Ramanagara district has a total population of over 1,08 million, which is

about 1.7 per cent of the total population of Karnataka. The population is less evenly

distributed between the 4 taluks, with Kanakapura leading with 33 per cent of the

population, followed by Channapatna with 25 per cent, Ramanagara with 23 per cent

and the remaining 20 per cent in Magadi.The literacy rate is 69.2 per cent, lower than

the State average. Male literacy at 76.9 per cent is higher than female literacy rate at

61.3 per cent.

Most of the population (79 per cent) lives in rural areas. In 2008-09,

Ramanagara district had the 8th smallest Gross District Domestic Product (GDDP) in

Karnataka at Rs 49,826 million (1.6 per cent of the Gross State Domestic Product). In

per capita GDDP, it ranked 5thlowest amongst the 30 districts at Rs 44,113 per annum.

Of the total area of the district, 47.5 per cent is the net sown area. Agriculture

is mainly dominated by the cultivation of ragi, which occupies 44 per cent of the total

cropped area. Ramanagara district is thus agrarian. However, many industries have


88

also come up, mainly due to its proximity to Bengaluru. In March 2011, the district

had 24 large and medium scale industrial units, employing 5,344 persons. Of these, 6

were the Toyota Group companies only, involved in manufacturing automobiles and

auto components. Other prominent companies included Hindustan Coca Cola

Beverages Private Limited. The district has several Small Scale Industries (SSIs),

mainly in sectors such as wood and textiles. In March 2010, the district had 479 SSIs,

employing 3,013 persons. Bidadi industrial area and Harohalli industrial area are the

two most prominent industrial areas of the district. During the Global Investors Meet

(GIM) held in 2010, 32 Memorandums of Understanding (MoUs) amounting to Rs

16,136.9 million were signed for the district. These are estimated to employ over

14,040 persons. During the GIM of June 2012, 25 MoUs / Expressions of Interest /

Registrations of Interest happened for Ramanagara district alone. These have a

proposed investment of Rs. 73,640million. These are expected to provide direct

employment for over 23,058 persons. The interests have been signed for projects in

several sectors including automobile; bio-tech and pharma; education; energy;

engineering; and tourism. The services sector includes wholesale and retail trade,

hotels and restaurants, transport, storage and communication, banking and insurance,

real estate, public administration and other services.. Of all the services, the key

services in the district are of ‘trade, hotels and restaurants’ at 24.1 per cent of GDDP.

Ramanagara district has an area of 56,032 ha under horticultural crops which

produced 374,037 tonnes at an average yield of 6.68 tonnes/ha and also fetched a

return of Rs. 68.10 million for the year 2012-13 (Table 3.7). While Channapatana

taluk has slightly more hectares (19,160 ha, 34.2 per cent) under horticultural crops,

all other taluks have more or less 11-13 thousand hectares: Magadi taluk 12,935 ha

(23.1 per cent), Ramanagar taluk 12,235 ha (21.8 per cent), and Kanakapura taluk

11,703 ha (20.9 per cent). Production in Magadi taluk is relatively high at 112,298

tonnes (30.2 per cent) that at Channapatana taluk (88,415 tonnes, 23.6 per cent)

despite the fact the latter has more hectares under the horticultural crops than the

former. Kanakapura taluk has produced 92,576 tonnes (24.8 per cent) whereas

Ramanagara taluk has produced 80,749 tonnes (21.6 per cent). Differential resources

endowments of the taluks are amply clear in the production figures of horticultural

crops in the district.


89

Table 3.7: Area, Production, Yield and Value of Horticultural Crops In

Ramanagara District 2012-13 (as on March 31)

Taluk Area in ha Production in tonnes Yield in tonnes/ha Value in Rs. Million

Channapatna 19,160 88,415 4.61 10.39

Ramanagara 12,235 80,749 6.60 9.44

Magadi 12,935 112,298 8.68 19.26

Kanakapura 11,703 92,576 7.91 29.01


The yield in two of the taluks is higher than the district average and in two

other taluks lower than the district average which is as follows: Magadi taluk recorded

8.68 tonnes/ha whereas Kanakapura taluk 7.91 tonnes/ha; and Ramanagara taluk

recorded 6.6 tonnes/ha while Channapatana recorded 4.61 tonnes/ha, the lowest yield

in the district. The value of production reported for the taluks does not support a direct

and positive relationship between production and monetary value, for Kanakapura

taluk has had higher returns (Rs. 29.01 million or 42.6 per cent) than Magadi taluk

(Rs. 19.26 million or 28.3 per cent) despite the fact Magadi taluk produced far more

(112,298 tonnes) than Kanakapura taluk (92,576 per cent). This could only be

attributed to different combinations of horticultural crops in Magadi taluk in

comparison with Kanakapura taluk. Channapatana taluk recorded a return of Rs.

10.39 million (15.3 per cent) while Ramanagara taluk Rs. 9.44 million (13.9 per cent).

3.11 Horticulture in Tumkur District

Tumkur was formed as a separate district in 1997. It has a total land area of

10,597 km2, 5.5 per cent of the total State area. It is bordered on the north by

Anantapur district of Andhra Pradesh, on the east by the districts of Kolar and

Bangalore, on the south by Mandya district and on the west and northwest by the

districts of Hassan and Chitradurga.It has 10 sub-districts and 2,574 villages (Figure

3.7). A majority of the population at 80.4 per cent lives in rural areas. Agriculture is

the main occupation, employing 70 per cent of the labour force (Census 2011). The

remaining is in household industry (5 per cent) and other workers at 25 per cent.


90

Paddy and ragi are the key crops. Coconut is in plenty, especially in Tiptur

sub-district, which is also known as the ‘coconut bowl of Karnataka’. This has led to

setting up of many coconut based industries in the district. The district is also well

endowed with considerable mineral wealth. Key mineral reserves include iron ore,

limestone, granite, dolomite, manganese and soapstone. The district, like all others,

benefits from its proximity to Bangalore. While many youth from the district move to

Bangalore in search of better job opportunities, a few industries have been also

established in Tumkur due to proximity to the State capital and also international

airport.

Figure 3.7: Tumkur District

As per Census 2011, Tumkur district has a population of 2.68million, 4.4 per

cent of the State population. A fifth of the population (20 per cent) is concentrated in

Tumkur sub-district, followed by Sira sub-district at 12 per cent and Madhugiri,

Pavagada and Gubbi sub-districts at 10 per cent each. While 65 per cent of the

population in the district is in the working-age group of 15 to 64 years, about 51 per

cent is actually working. The literacy rate is 74.3 per cent, which is slightly lower than

the State average but close to All-India average. Male literacy at 82.05 per cent is


91

significantly higher than female literacy rate at 66.45 per cent. Of the 30 districts,

Tumkur ranks 10thon Gender Development Index with 0.528.Most of the population

(80.4 per cent) lives in rural areas. The district has a total workforce of about 1.36

million. Of this, 46 per cent are cultivators, 24 per cent are agricultural labourers, 5

per cent are workers in household industry and 26 per cent are other workers.

As of 2008-09, Tumkur district had the seventh largest Gross District

Domestic Product (GDDP) in Karnataka at Rs 98,376.4 million (3.2 per cent of the

Gross State Domestic Product). In terms of per capita GDDP though, it ranked 18th

amongst the 30 districts at Rs. 34,725. The district economy is pre-dominantly service

based, with the sector’s share in GDDP at 46 per cent in 2008-09. This is followed by

primary sector at 28 per cent and secondary sector at 26 per cent. Of the total area of

10,597 km2, over 58 per cent is the net sown area. Agriculture is mainly dominated by

the cultivation of ragi and paddy under food crops and coconut under commercial

crops. As of December 31, 2011, Tumkur district had 31 large and medium scale

industrial units, employing 6,958 persons. These included seven Multinational

Companies (MNCs) including companies such as Wienerberger Brick Industry Pvt.

Ltd., Mann & Hummel Filter Pvt. Ltd. and Kern Liebers Pvt. Ltd. End products

manufactured included cement, industrial filters, automobile filters, electrical motors,

gherkins, granite tiles and slabs. Tumkur also has 22,857 Small Scale Industries

(SSIs), employing 127,297 persons. As of March 2010, a majority of these was textile

based industries at 20.5 per cent, followed by wood based industries at 15.3 per cent,

food and intoxicant based industries at 10.9 per cent, job works and repairs based

industries at 10 per cent and remaining in others. The district has seven industrial

areas, totalling685 of land. Of this, 376 ha of land has been allotted so far. Four more

industrial areas totalling127 ha are in different stages of development.

Tumkur district is attracting significant investments from industrial players.

During the Global Investment Meet (GIM) held in 2010, 8 Memorandums of

Understanding (MoUs) amounting to Rs 23,565 million were signed for the district.

These are estimated to employ 33,984 persons. Currently two projects are under

implementation. During the second GIM in 2012, 23 MoUs / Expressions of Interest /

Registrations of Interest happened for Tumkur district. These have a proposed

investment of Rs. 75,970 million. These are expected to provide direct employment to

over 9,200 persons. The interests have been signed for projects in several sectors


92

including agro, food and horticulture; automobiles, cement and other minerals,

energy, textiles and apparels, and hotels.



administration and other services. The key services in the district are of ‘real estate,

ownership of dwellings, business and legal services’ at 12.6 per cent of GDDP,

followed by other services at 9 per cent and trade, hotels and restaurants at 7.5 per

cent.

Table 3.8 shows that Tumkur has a total area of 212,051 ha under horticultural

crops (2012-13) and has recorded a production of 67,541 tonnes of horticultural

produce with an average productivity of 3.16 tonnes / ha, which is perhaps the

smallest of the yields among the study districts. The return from horticultural crops

for the year has been Rs. 320.99 million. Among the ten taluks, Gubbi (47,013 ha or

22.2 per cent) has the largest area under the horticultural crops followed by Tiptur

(32,499 ha or 15.3 per cent), Turuvekere (31,754 ha or 15 per cent),

Chikkanayakanahalli (C.N. Halli) (31,446 ha or 14.8 per cent), and Tumkur (27,301

ha or 12.9 per cent) while all other taluks have smaller and smaller areas under them

as follows: Sira(15,774 ha or 7.4 per cent), Kunigal (10,912 ha or 5.1 per cent),

Koratagere (6,878 ha or 3.2 per cent), and Pavagada (3,663 ha or 1.7 per cent). Thus,

six of the ten taluks have accounted for 80.2 per cent of the area, the other four taluks

have accounted for 19.8 per cent of the area under horticultural crops.

It is obvious that the taluks have different combinations of the horticultural

crops and resources endowments that the production is not equal or not in accordance

with the land area either, for there are dramatic spatial variations in the district in

terms of taluks. Of the total production, Gubbi (141,163 tonnes or 21.1 per cent) and

Tumkur (134,547 tonnes or 20.1 per cent) taluks alone account for 41.2 per cent; Sira

and Kunigal taluks together (174,931 tonnes) account for 26.1 per cent of the total

district production. Thus, the four taluks put together account for more than two-thirds

(67.3 per cent) of the total production, the one-third given over to all other six taluks.

Tiptur (35,641 tonnes) and Turuvekere (35,665 tonnes) taluks have shown more less

equal production levels because they both have almost equal areas (32,499 ha and

31,754 ha, respectively) under the horticultural crops. The spatial variations in yield


93

per ha among the taluks of the district are equally dramatic with six taluks having

more than the district average of 3.16 tonnes/ha and the others less than that:

Madhugiri 8.23 tonnes/ha, Koratagere 8.06 tonnes/ha, Kunigal 7.64 tonnes/ha,

Pavagada 7.40 tonnes/ha, Sira 5.80 tonnes/ha, and Tumkur 4.93 tonnes/ha are the

taluks above the district average productivity and Gubbi 3.0 tonnes/ha, Turuvekere

1.12 tonnes/ha, Tiptur 1.10 tonnes/ha and C.N. Halli 0.84 tonne/ha are the taluks with

less than the district average productivity.

Table 3.8: Area, Production, Yield and Value of Horticultural Crops In Tumkur

District 2012-13 (as on March 31)

Taluk Area in ha Production in tonnes Yield in tonnes/ha Value in

Rs. Million

C.N.Halli 31,446 26,394 0.84 30.15

Gubbi 47,013 141,163 3.00 71.64

Koratagere 6,878 55,463 8.06 21.09

Kunigal 10,912 83,383 7.64 22.31

Madhugiri 4,812 39,627 8.23 14.17

Pavagada 3,663 27,111 7.40 12.38

Sira 15,774 91,548 5.80 36.69

Tiptur 32,499 35,641 1.10 28.03

Tumkur 27,301 134,547 4.93 53.79

Turuvekere 31,754 35,665 1.12 30.72


Gubbi (Rs. 71.64 million or 22.3 per cent) and Tumkur (Rs. 53.79 million or

16.8 per cent) are the only taluks with relatively higher returns from horticultural

crops (a share of 39.1 per cent of the total returns or value of production) than any

other of the other taluks. Turvekere (Rs. 30.72 million), Sira (Rs. 36.69 million), C.N.

Halli (Rs. 30.15 million) and Tiptur (Rs. 28.03 million) are the taluks with moderate

returns while all others are with low returns from the horticultural crops. In the order

of lessening returns, here are the other taluks: Kunigal Rs. 22.31 million, Korategere

(Rs. 21.09 million), Madhugiri (Rs. 14.17 million) and Pavagada (Rs. 12.38 million).

There is further evidence for the contention that the differential resource endowments

of the taluks and the differential combinations of horticultural crops in them give rise

to differential production as well as value of production or returns.


94

In the following pages, the discussion is all about fruit and vegetable crops at

the global (top ten and other countries, mainly spatial), national (India, mainly

temporal), regional (Karnataka, mainly temporal) and local (study area, the six

district, both spatial and temporal) levels, thus focusing on the concern of our study.

3.12 Major World Producers of Fruits and Vegetables

In area of both fruits and vegetables China tops the list of 10 largest countries

with the ten largest area under cultivation (11.4 million ha of fruits and 21.05 million

ha of vegetables) and production in tonnage (122.2 million tonnes of fruits and 473.1

million tonnes of vegetables). India is second only to China in areas under cultivation

of fruits (6.4 million ha) and vegetables (8.5 million ha) and also production of fruits

(74.88 million tonnes) and vegetables (146.6 million tonnes). The others of the top ten

countries for fruits are Brazil (2.4 million ha, 39.3 million tonnes), USA (1.15 million

ha, 25.4 million tonnes), Spain (1.6 mha, 15.2 mt), Italy (1.28 mha, 16.9 mt), Mexico

(1.2 mha, 15.3 mt), Philippines (1.2 mha, 16.2 mt), Turkey (1.1 mha, 1.4 mt), and

Indonesia (0.6 mha, 14.9 mt). Other countries of the world on the other hand cultivate

fruits in an area of 26.8 mha and vegetables in 18.5 mha, producing fruits to the tune

of 245.2 mt and vegetables of 242.1 mt (Table 3.9; Figures 3.8 and 3.9). While the

world fruits’ productivity is 10.9 tonnes / ha, the productivity of the countries of the

world in fruits vary from 22.4 tonnes / ha in Indonesia to 9.7 tonnes / ha in Spain and

9.2 tonnes / ha in countries other than the top ten (Figure 3.10).

Table 3.9: Top Ten Producers of Fruits and Vegetables in the World 2010-11 Area: in ,000 Ha, Production: in ‘000 tonnes, Productivity: Tonnes /Hectors

Fruits Vegetables

Country Area Production Productivity Country Area P roduction Productivity

China 11,402 122,185 10.7 China 21,047 473,063 212.5

India 6,383 74,878 11.7 India 8,495 146,554 17.3

Brazil 2,441 39,287 16.1 USA 1,124 35,294 31.4

USA 1,145 25,384 22.2 Turkey 1,090 25,831 23.7

Italy 1,277 16,908 13.2 Iran IR 712 18,679 26.2

Mexico 1,212 15,256 12.6 Russia 759 13,234 17.4

Indonesia 663 14,868 22.4 Egypt 758 19,516 25.7

Spain 1,562 15,184 9.7 Italy 537 13,499 25.4

Philippines 1,156 16,182 14.1 Spain 341 12,680 37.2

Turkey 1,093 1,396 12.8 Mexico 656 12,125 18.5

Others 26,752 245,224 9.2 Others 18,458 242,050 13.1

World 55,087 599,300 10.9 World 53,977 1,012,524 18.8

Source: Indian Horticulture 2011; National Horticulture Board 2011; Ministry of Agriculture, Government of India, FAO March 2012. Note: All figures for area and production are rounded off to the nearest thousand. Area is in thousand hectares and production is in thousand tonnes. Productivity is in tonnes/hectare.


95

The top ten countries of vegetable cultivation and production are different

from those of the fruit cultivation and production, except for China and India, the top

two countries in vegetables as well. The order in terms of area under vegetable

cultivation is: USA and Turkey 1.1 mha each; Iran 0.7 mha; Russia and Egypt 0.76

mha each; Mexico 0.7 mha; Italy and Spain 0.54 mha each; and countries other than

the top ten put together 18.5 mha. As for production, the order is different as well:

USA 35.3 mt; Turkey 25.8 mt; Egypt 19.5 mt; Iran 18.7 mt; Italy 13.5 mt; Russia 13.2

mt; Spain 12.7 mt; Mexico 12.1 mt; and the countries other than the top ten produced

242.1 mt in 2010-11.

The world productivity is at 18.8 tonnes / ha whereas the top ten countries

have shown varying productivity, from a low of 17.3 tonnes / ha in India to 37.2

tonnes / ha in Spain (Figures 3.11, 3.12 and 3.13). The area under cultivation of fruits

in the world in 2010-11 was 55.1 million ha and the area under vegetables in the

world was almost the same but slightly low at 54 million ha. While the production of

fruits for the stated year stood at 599.3 million tonnes, the production of vegetables

stood higher at 1,013 million tonnes. The productivity of fruits was at 10.9 tonnes per

ha whereas the productivity of vegetables for the year was 18.8 tonnes per ha in the

world. The top ten countries growing fruits accounted for 51.4 per cent of the acreage

under them in the world with other countries accounting for 48.6 per cent of the area.

Figure 3.8


96

Figure 3.9

Figure 3.10

Figure 3.11


97

Figure 3.12

Figure 3.13

On the other hand, the top ten countries of the world producing fruits

accounted for 59.1 per cent of the total world production while the other countries

accounted for 40.9 per cent of the total world production only. As for vegetables, the

top countries of the world accounted for 65.8 per cent of the area under vegetables

and 76.1 per cent of the total production in vegetables. Correspondingly, therefore,

other countries of the world accounted for 34.2 per cent of the area under vegetables

but only 23.9 per cent of the world vegetable production.


98

3.13 Area and Production of Fruits and Vegetables of India

Table 3.10 shows the Indian horticultural production in terms of fruits and

vegetables for the years 1991-92 and 2001-02 through to 2011-12. Overall, there has

been a steady increase in the area and production of fruits and vegetables in India,

without a let up or decline in the period of analysis reported here. The area under fruit

crops in India increased from 2.87 million ha in 1991-92 to 4.01 million ha in 2001-

02 and then to 6.71 million ha in 2011-12 (Figure 3.14). Similarly, the area under

vegetable crops in the country also increased from 5.59 million ha in 1991-92 to 6.66

million ha in 2001-02 and then to 8.99 million ha in 2011-12 (Figure 3.16).

Table 3.10: Indian Horticulture Production: Fruits and Vegetables During

1991-92 and 2001-02 to 2011-2012

Years

Fruits Vegetables

Area in

’000,000 ha

Production

in 10-million tonnes

Area in

’000,000 ha

Production in

10-million tonnes

1991-92 2.87 2.86 5.59 8.58

2001-02 4.01 4.30 6.16 8.86

2002-03 3.79 4.52 6.09 8.48

2003-04 4.66 4.59 6.08 8.83

2004-05 5.05 5.10 6.74 10.13

2005-06 5.32 5.54 7.21 11.14

2006-07 5.55 5.96 7.58 11.50

2007-08 5.86 6.56 7.85 12.84

2008-09 6.10 6.85 7.98 12.91

2009-10 6.33 7.15 7.99 13.37

2010-11 6.38 7.49 8.50 14.66

2011-12 6.71 7.64 8.99 15.63

CAGR % 5.65 6.56 4.14 6.47 Source: National Horticulture Mission 2013.


99

Figure 3.14

Figure 3.15

Figure 3.16


100

The compounded annual growth rates computed for the area and production of

the fruit and vegetable crops have yielded 5.65 per cent for the area of fruit crops, but

4.14 per cent for the area of vegetable crops over the period under study. On the other

hand, the production of fruits has shown a CAGR of 6.56 per cent and the CAGR of

production of vegetables has shown a more or less similar rate of 6.47 per cent.

It has been very smooth sailing for both the fruit crops and the vegetable crops

over the 20-year period in terms of area under the two crops. Keeping in tune with the

increasing area under the two crops, the production also kept a steady pace from 28.6

million tonnes in 1991-92 to 43 million tonnes in 2001-02 and then to 76.4 million

tonnes in 2011-12 for fruit crops (Figure 3.15). This steady pace was also the

characteristic of the production in vegetable crops for India: from 85.8 million tonnes

in 1991-92 to 88.6 million in 2001-22 (a rather very slow pace considering the

increase in area over the same decade) and then to 156.3 million tonnes in 2011-12

(Figure 3.17).

Figure 3.17

The area under fruit crops has taken nearly 17 years whereas the area under

vegetable crops has not doubled even in a 20-year period. The doubling in the

production of fruits has taken exactly the same period, about 17 years, while the

doubling has not happened in the case of the vegetable production in all of the 20-year

period. It is like the production in both fruits as well as vegetables would treble and

double, respectively, in the next few years in the immediate future.


101

3.14 Area and Production of Fruits and Vegetables in Karnataka

The data on area and production for area and production of fruit and vegetable

crops for the State of Karnataka for the period 1999-2000 and 2000-01 to 2011-12 are

shown in Table 3.11. A cursory glance at the data indicates that the general trend is an

increasing trend for both the crops, although there have been a slackening between

1999-2000 and 2000-10 as follows: the area under fruit crops was 313 thousand ha

which fell drastically to 261 thousand ha in 2000-01; in the next eleven years however

there was an increase to 360 thousand ha in 2009-10, 354 thousand ha in 2010-11, and

369 thousand ha in 2011-12 (Figure 3.18).The trend in production of fruits follows a

pattern of down, from 4.64 million tonnes in 1999-2000 to 4.03 million tonnes in

2001-02, to 3.83 million tonnes in the next two years, and then through a series of

increases to 6.13 million tonnes in 2010-11 and finally to 6.31 million tonnes in the

year 2011-12 (Figure 3.19). in both the area and production of fruit crops, there were

thus unpredictable trends.

Such trends could be expected in the immediate future as well, as the physical

endowments, crop combinations, and changing inputs and technologies could lead the

farmers either way, an upward or a downward trend but nevertheless on the path of

increased value of production.

In comparison to fruit crops, there was a reversal in the area of vegetable crops

from 329 thousand ha in 1999-2000 to 377 thousand ha in 2000-01 and a further

increase to 403 thousand ha in 2005-06, to 427 thousand ha in the next two years and

to 438 thousand ha in the next three years and then to 420 thousand ha in the very

next year, through several ups (increases) and downs (decreases) (Figure 3.20). As for

production in vegetable crops of the State, the trend was in a sense in accordance with

the changes in the area under production, increasing and decreasing and remaining

mixed and flexible throughout the period, not allowing for a definite trend of increase

or decrease (Figure 3.21).


102

Table 3.11: Area and Production of Fruits and Vegetables in Karnataka State

Years

Fruits Vegetables

Area in ‘000 ha Production

in million tonnes

Area in

‘000 ha

Production

in million tonnes

1999 - 00 313 4.64 329 4.39

2000 - 01 261 4.17 377 6.65

2001 - 02 257 4.03 383 4.89

2002 - 03 255 4.04 367 4.49

2003 - 04 242 3.83 364 4.15

2004 - 05 255 4.08 371 4.40

2005 - 06 258 4.35 403 6.70

2006 - 07 278 4.74 412 7.02

2007 - 08 300 5.00 427 7.36

2008 - 09 318 5.53 421 6.76

2009 - 10 360 5.96 437 7.06

2010 - 11 354 6.13 438 7.38

2011 - 12 369 6.31 420 7.55

CAGR % 2.81 3.91 1.99 4.54 Source: Indian Horticulture Database 2012 of the National Horticulture Board.

The production of vegetables was at 4.39 million tonnes in 1999-2000, which

rose drastically to 6.65 million tonnes in the very next year only to fall to 4.15 million

tonnes in 2003-04 and to further rise through the years to 7.36 million tonnes in 2007-

08 and then again fall and rise again to 7.55 million tonnes in 2011-12. The fortune of

the farmers was also risen and fallen with the production, leaving them unsure of the

future trends but nevertheless confident of making it big in the future, for the prices of

fruits and vegetables were rising and the HOPCOMS were helpful all through.

Despite fluctuations in the trends of fruits and vegetables, both in regard to

area under cultivation and production achieved over the years, the compounded

annual growth rates computed have shown positive trends: the CAGR for area under

fruit crops is 2.81 per cent; production of fruits is 3.91 per cent; while the same for

vegetables is 1.99 per cent for the area under cultivation and 4.54 per cent for

production.


103

Figure 3.18

Figure 3.19


104

Figure 3.20

Figure 3.21

Now we turn to the study area, the six districts of our concern, looking at both

the spatial (both with and among the districts) and temporal variations in area,

production, yield or productivity and value of production. The value of production is


105

at the HOPCOMS gate rather than at the farm gate, but the farmers receive a fair deal

at the hands of the HOPCOMS.

3.15 Area, Production, Yield and Value of Fruits and Vegetables in the Study

Districts

Table 3.12 shows the detail on the area, production, yield and monetary value

of fruit and vegetable crops in the study districts, which are the six districts of

Bangalore Urban, Bangalore Rural, Chikkaballapura, Kolar, Ramanagara and

Tumkur. Fruit crops occupied a total area of 146,052 ha in the whole of the six district

and produced as much as 1.87 million tonnes of fruits in the years 2012-13. The yield

per ha amounted to 12.8 tonnes a hectare. The monetary value of production for the

year was Rs. 36.16 million. Similarly, the total area occupied by vegetable crops in

the study districts amounted to 70,606 ha with a production accomplished of 1.71

million tonnes with an average yield of 24.22 tonnes / ha. The total returns as value of

production was Rs. 132.42 million for the year 2012-13. The returns from vegetables

from the six districts of Karnataka was more than three times (3.4 times) that of the

returns from fruits, because vegetables are widely consumed than fruits. And in rural

areas, the fruits consumed are normally those locally available and largely free.

Kolar district has the largest area under fruits (56,879 ha or nearly 40 per cent

of the area under fruits in the six districts) and the smallest area under the fruit crops

is in Bangalore Urban district (4,529 ha or 3.1 per cent). Ramanagara ranks second in

area under fruits (27,087 ha or 18.5 per cent), Chikkaballapura district third (22,941

ha or 15.7 per cent) and the others follow in the order of Tumkur district (22,023 ha

about 15 per cent) and Bangalore Rural district (12,593 ha or 8.6 per cent). The study

area seems to do better in vegetables than in fruits, in production of vegetables, yield

per ha and value of production even though not in regard to area under vegetables. In

area under vegetables, Kolar district tops the list of six districts (36,084 ha or 51 per

cent) and all others are a poor low in area under vegetables: Chikkaballapura 14,511

ha or 21 per cent, Bangalore Rural 8,737 ha or 12 per cent, Bangalore Urban 4,055 ha

or 6 per cent, Ramanagara 3,754 ha or 5 per cent, and Tumkur 3,465 ha or about 5 per

cent (Figure 3.22).


106

Table 3.12: Area, Production, Yield and Value of Fruits and Vegetables in the

Study Area 2012-13

District

Fruits Vegetables

Area in ha Production

in Tonnes

Yield

Tonnes/ha

Value in

Rs. Million Area in ha

Production

in Tonnes

Yield

Tonnes/ha

Value in

Rs. Million

Bangalore Urban

4,529 84,860 18.74 0.90 4,055 66,865 16.49 8.26

Bangalore Rural 12,593 159,655 12.68 3.20 8,737 163,511 18.71 18.45

Chikkaballapura 22,941 271,524 11.84 3.64 14,511 261,360 18.01 14.48

Kolar 56,879 615,273 10.82 10.07 36,084 993,487 27.53 55.73

Ramanagara 27,087 334,010 12.33 14.63 3,754 54,612 14.55 10.70

Tumkur 22,023 404,350 18.36 6.75 3,465 170,575 49.22 24.80

Study Area Total

146,052 1,869,672 12.80 39.16 70,606 1,710,410 24.22 132.42

Source: Indian Horticulture Database 2012 of the National Horticulture Board.

As for production, the shares are as follows: Kolar district accounts for 31 per

cent (615,273 tonnes) of the production in tonnes whereas Ramanagara district

accounts for 18 per cent (334,010 tonnes), Chikkaballapura district 15 per cent

(271,524 tonnes), Bangalore Rural district 9 per cent (159,655 tonnes) and Bangalore

Urban district just about 5 per cent (84,860 tonnes). The production of vegetables in

the districts is in line with the area under vegetable crops and as such the share of

production is as follows: Kolar 58 per cent (993,487 tonnes), Chikkaballapura 15 per

cent (261,360 tonnes), Bangalore Rural (163,511 tonnes) and Tumkur more or less 10

per cent (170,575 tonnes) each, and Bangalore Urban just about 4 per cent (66,865

tonnes). The share of production thus shows a direct and positive relationship with

the share of the area under fruit crops (Figure 3.23).


107

Figure 3.22

Figure 3.23


108

Figure 3.24

In regard to yield per ha, only two of the districts show up above the average

yield of the study district, that is, 12.8 tonnes/ha: Bangalore Urban 18.74 tonnes/ha

and Tumkur 18.36 tonnes/ha. The districts with less than average yield per ha are

Bangalore Rural 12.68 tonnes/ha, Ramanagara 12.33 tonnes/ha, Chikkaballapura

11.84 tonnes/ha, and Kolar 10.07 tonnes/ha (Figure 3.24). It is rather upsetting that

the district which has the largest area and largest production of fruits has recorded the

lowest of the yield/ha (Kolar). The tonnage per ha of land is appreciable at 24.22

tonnes/ha for the vegetables grown in the study area and even this appreciable

tonnage is exceeded in Tumkur district at 49.22 tonnes/ha, which is excellent for the

area, and Kolar district at 27.53 tonnes/ha. In all other districts, the yield per ha is

lower than the average for the study area and they are: Bangalore Rural 18.71

tonnes/ha, Chikkaballapura 18.01 tonnes/ha, Bangalore Urban 16.49 tonnes/ha and

Ramanagara 14.55 tonnes/ha.

However, the returns from the fruits sold are not in direct and positive relation

to either area under fruit crops or production of fruits. Ramanagara tops among the

districts with a return of Rs. 14.63 million (37 per cent), followed in order by Kolar

(Rs. 10.07 million or 27 per cent), Tumkur (Rs. 6.75 million or 17 per cent),

Chikkaballapura (Rs. 3.64 million or 9 per cent), Bangalore Rural (Rs.3.20 million or


109

8 per cent), and Bangalore Urban (Rs.0.99 million or just about 2 per cent). Value of

production for vegetables in the study area reflects clearly a direct and positive

relation to area under production and production tonnage. The value of production

(and share) for the districts of the study area are as follows: Kolar Rs. 55.73 million

(42 per cent), Tumkur Rs. 24.8 million (19 per cent), Bangalore Rural Rs. 18.45

million (14 per cent), Chikkaballapura Rs. 14.48 million (11 per cent), Ramanagara

Rs. 10.7 million (8 per cent) and Bangalore Urban Rs. 8.26 million (6 per cent)

(Figures 3.25, 3.26 and 3.27).

Figure 3.25

Figure 3.26


110

Figure 3.27

District level data on individual and reliable horticultural crops are available

only from 2005-06 and the data for the period before this year are rather sketchy or

patchy and hence only 8-year data, from 2005-06 to 2012-13 are discussed here.

There are also some discrepancies when we aggregate such data for the district and

lower administrative level such as the taluk. Table 3.13 is a reasonably aggregated

data on area, production, yield and value of production of fruit and vegetable crops of

the study districts.

In all of the eight years, fruits occupy large areas than vegetables. The area

under fruits was 122,404 ha in 2005-06 but it dropped some of its acreage in the next

two years, 119,046 ha in 2006-07 and 109,046 ha in 2007-08, and picked up fast and

continued steadily on in the next 5 years to reach 146,053 ha in 2012-13. But the trend

in growth of area under vegetables was quite different. It was 70,024 ha in 2005-06

and it increased fast in the next year to 73,222 ha only to fall steeply to 64,041 ha in

2007-08 and then it steadily increased to 70,607 ha in 2012-13. The compounded

annual growth rate for fruits was 3.81 per cent and for vegetables was a very poor

0.07 per cent. The CGAR does show the rapidity with which area under fruit crops


111

grew as against the slackness with which the area under vegetables grew in the 8-year

period under discussion (Figure 3.28).

The production of fruits also kept pace with increasing acreage just as it was in

vegetables, with fruit production increasing at the compounded annual growth rate of

3.95 per cent and, rather surprisingly, vegetable production also increasing at the

compounded annual growth rate of 1.95 per cent. Fruits showed a sort of increase and

then decrease in the in the initial three years of our period, from 1.5 million tonnes in

2005-06 to 1.6 million tonnes in 2006-07 and then back to 1.5 million tonnes in 2007-

08, only to rise to 2.0 million tonnes in 2009-10 and then stabilize at 1.9 million

tonnes for the next three years and in fact until the end of the study period. Vegetable

production more or less followed the same trend but yet with differences: it was 1.6

million tonnes in 2005-06 and then decreased to 1.5 million tonnes in 2006-07 and to

1.4 million tonnes in 2007-08. It then increased to 1.5 million tonnes and remained

stable for two years only to rise again and stabilize at 1.7 million tonnes in the last

three years of our period (Figure 3.29).

Table 3.13: Area, Production, Yield and Value of Fruits and Vegetables in the

Study Area 2005-06 to 2012-13

Fruits Vegetables

Year

Area

in ha

Production

Million Tonnes

Yield

Tonnes/ha

Value

in Rs. Million

Area

in ha

Production

Million Tonnes

Yield

Tonnes/ha

Value in

Rs. Million

2005-06 122,404 1.5 12 14.04 70,024 1.6 22 78.41

2006-07 119,046 1.6 13 12.31 73,222 1.5 21 89.45

2007-08 109,977 1.5 14 9.64 64,041 1.4 21 57.02

2008-09 129,359 1.9 15 22.21 65,317 1.5 23 95.32

2009-10 140,287 2.0 15 30.48 66,409 1.5 23 141.55

2010-11 143,819 1.9 13 27.70 68,920 1.7 24 102.06

2011-12 145,845 1.9 13 28.58 69,801 1.7 24 104.51

2012-13 146,053 1.9 13 39.16 70,607 1.7 24 132.42

CAGR % 3.81 3.95 - 19.4 0.07 1.94 - 8.16 Source: Indian Horticulture Database 2012 of the National Horticulture Board.


112

Figure 3.28

Figure 3.29

Whereas the yield per ha of fruits remained low throughout and about 12

tonnes/ha -15 tonnes/ha through the eight years, the vegetables also followed more or

less similar pattern of yield per ha, keeping high relative to fruits throughout the

period between 21 tonnes/ha to 24 tonnes/ha (Figure 3.30). Fruits occupied larger

areas but yielded low but vegetables occupied relatively lesser areas but yielded

relatively high, but both with a very small range of change.


113

Figure 3.30

The value of production also showed a reverse of relation in both fruits and

vegetables throughout the period of analysis, low total value of production compared

to large areas of cultivation and even relatively large production in fruits. On the other

hand, relatively smaller areas under vegetables produced relatively high production

and fetched far greater value of production. While the value of production for fruits

almost trebled (2.8 times) from Rs. 14.04 in 2005-06 to Rs. 39.16 million in 2012-13,

the value of production for vegetables did not even double (in increased only by 1.7

times) during the same period, but at a much higher value of production at Rs. 78.41

million (nearly six times the value of production of fruits) in 2005-06 to Rs. 132.42

million (3.4 times the value of production of fruits) in 2012-13 (Figure 3.31).

Figure 3.31


114

It is clear from the analysis that vegetables are in demand at higher levels than

fruits in the study area as well the State of Karnataka and perhaps India as well. If we

go by the economic dictum that supply of a product is in consonance with the demand

of that product, then the supply of vegetables and fruits are in relation to the demands

for the two in the study area, the State of Karnataka and the country. Perhaps the

horticultural farmers of the State and the study area have achieved a higher

productivity and also returns in vegetables than in fruits and hence fruits are the ones

that demand greater all round improvement even as importance should be given to

vegetables as they are in greater demand.

At this juncture, it is necessary to discuss materials relating to cooperatives

and particularly the origin and development and the spread of HOPCOMS in the

State, particularly in the city of Bangalore and the study districts in the following

pages because HOPCOMS, its outlets, producers, procurement, processing,

marketing, and consumers are important and focus of the study. In this chapter,

procurement, storage in godowns, purchases from them and balances thereof are

discussed towards the end of the chapter. Some historical aspects of the HOPCOMS

and its infrastructures are also discussed through the following pages.

3.16 Progress and Achievements of the Mysore Horticultural Society

For the purpose of effective, in-depth study of the MHS, the progress and

achievements of MHS over the years from 1912 to date were classified into two

phases, since there was clear demarcation in the activities and achievements of MHS

from 1912 to 1950 and from 1950 onwards. The period from 1912 to 1950 was called

“Pre-Independence Era” and the period from 1950 and onward is aptly called “Post-

Independence Era”. During the first era, the activities of MHS were monitored by the

Dewan, the executive Head of the State whereas, after 1950, the activities of MHS

were monitored by the Chief Minister of the state. Though the princely rule and

Dewan’s administration of the state was ended in 1948, the year in which the

Government of His Highness Maharaja of Mysore merged into the Union of India, the

hangover of the ‘Rajrule’ was evident in the administration of the state until 1950, the

year in which the State of Mysore became part of the Sovereign Democratic Republic

of India’.


115

Since the inception of MHS in 1912, the objectives of the society were to

involve the elites, bureaucrats, and defense and service personnel, in the activities of

the MHS to improve ornamental horticulture, city landscape and city aesthetics,

Bangalore city in particular and Bangalore district in general. The second phase of

MHS states from 1950 onwards. From here onwards, the people’s representatives

were ruling the state. Naturally, all the programmes of the MHS were reoriented for

the benefit of the people of the state. As a first step, the MHS opened its branch in

Mysore city to extend its activities. In a short period, many branches were started at

various places, namely, Mandya, Tumkur, Kolar, Chitradurga, and Chikkamangalur.

From 1956, the year in which the state was reorganized on linguistic basis, the

northern district of Dharwad, Belgaum, Bijapur, Raichur, Gulbarga, and Bidar; the

western districts of Dakshina Kannada, Kodagu, and Uttara Kannada; and one in the

eastern districts. Bellary became part of the Mysore state and branches of MHS were

opened in all these district headquarters, and subsequently at taluk headquarters,

thereby decentralization and democratization of activities of MHS took place during

post-Independence era. The annual reports of the MHS, submitted by these secretaries

provided vivid detail of functioning of MHS. Later, it gave way to the ‘Society

Notes’, published in the ‘Lalbagh Journal’ a Journal launched in 1956 by the society

itself.

The ‘Society Notes’ in Lalbagh Journal was meant as reports for all the

Secretaries of the branches of the MHS, spread over the nook and corner of the state.

The reports and information reported under this caption are very interesting which

reflect the developments in the horticulture field of the whole state. During the era, a

person of unimaginable capacity dominated the affairs of the Society. It was Dr. M H.

Marigowda just then returned from higher studies at Keiv Gardens in London and at

Harvard University in USA, who took keen interest in the development of horticulture

in the state. In addition to the MHS, he started other societies under the aegis of MHS

they are the Bangalore Grape Growers Cooperative Marketing and Processing Society

(BGGCS) and Bangalore Nursery Men Cooperative Society (BNCS). In fact, he was

responsible for the formation of Federation of All India Horticultural Societies.

In the year 1958-59, the Bangalore Grape Growers Marketing and Processing

Society was started under the presidentship of the Director of Horticulture. The


116

activities of the MHS were limited to a few districts in the beginning and now

extended to the entire Mysore state. The main function of the Society was to

encourage development and marketing of fruits in general and grapes in particular in

the state. Secondly, the Nursery Men’s Cooperative Society, and the fruits, vegetables

and Flower Gardeners’ Cooperative Society were also established to encourage and

activate the extension work of horticulture in the state. In 1963, the Orange Grower’s

Cooperative Society was also linked with the Department.

The Bangalore Nurserymen’s Cooperative Society arranges for the supply of

genuine fruits and ornamental plants and vegetable seeds and all garden requirements

at reasonable rates. It helps horticulture lovers in laying out gardens levying small

fees and supplies plants for decoration purposes on hire basis. Adjacent to the Golden

Jubilee Hall of the MHS, the BNCS has a conservatory of plants where most of the

leading nurserymen have stocked their plants, mostly those plants which would be

required for home decoration purposes. A novel method of sale of plants was adopted

called the “Sasya Santhe”. The Shandy is held between 9 a.m. and 5 p.m. on the first

Sunday of every month. These Societies have relieved the Department of its routine

functions, allowing more time for development and research work.

The Department encouraged three Horticulture Development Societies by

providing accommodation at Lalbagh:

1) The MHS responsible for building up and bringing together persons

who are interested in Horticulture Development;

2) BNCS, which supply all ‘inputs’, namely, fertilizers, seeds, seedlings,

and plant protection chemicals needed for growing horticulture crops;

3) Grape Growers; Marketing and Processing Cooperative Society for

(BGGS now called HOPCOMS) sale of ‘Output’ horticultural products

and produce.

These organizations work in consonance with the KSDH advice and

cooperation. It is accepted that the KSDH is the pioneer in India to organize such

establishments for the progress of horticulture development.


117

3.17 The HOPCOMS

The Horticulture Producers Cooperative Marketing and Processing Society

Limited (HOPCOMS), with its headquarters located in Bangalore, India, is a unique

enterprise for urban co-operative marketing of horticultural produce. It is a

cooperative society, started and run with the state support, managed largely by the

State Government officers. HOPCOMS are located in the State of Karnataka in South

India.

It had a membership base of 11,680 farmers in 2002, who supplied their

produce to HOPCOMS, through five procurement centres. The produce was then

marketed through 504 retail outlets, of which 231 were in different localities of urban

Bangalore, 114 in rural Bangalore, and the rest in other districts of Karnataka. In

2006-07, the membership was 14,767, which increased to 16,221 in 2008-09, with a

slight fall in number during 2007-08 (14,441 farmers). In 2011, there were 294 retail

outlets operating in both urban Bangalore and rural Bangalore.

In 2002, the transport to, and in, Bangalore was done through 40 vehicles that

also transported the employees of the outlets to their locations, with the produce and

the price lists every morning. The quantity of horticultural produce sold per day was

over 500 metric tonnes, and the turnover for the year was Rs. 420 million or Rs. 8.75

million at current conversion rates.

A marketing cooperative such as HOPCOMS can be seen as a form of

investment for urban agriculture. This is possible by investing in the organizational

form, a cooperative, training members and helping them to organize a business that

brings benefits through collective marketing in urban areas, which provide

concentrated markets for fruits and vegetables. The members are also guaranteed

better prices for produce, and consumers benefit from lower prices for high quality

products. Thus, the case study of HOPCOMS is an example of investment schemes

such as savings and credit cooperation (operative in Nepal), project grants (in

Europe), municipal investment (in Latin America) and in-kind support (in Nairobi,

Kenya). The benefit of such an investment is that it creates a business organization

that can be potentially managed by the poor and can be run at a scale that provides

significant benefits through urban marketing of agricultural produce.


118

3.18 Bangalore City HOPCOMS and the Infrastructures

It is in this city that HOPCOMS was started in 1959, and urban marketing of

horticultural produce was started. The organization was started in the co-operative

sector. Following section provides a brief background of the sector, its origin and

spread in India, and the principles of co-operatives. Table 3.14 shows the

infrastructural facilities available for marketing the horticultural products through

HOPCOMS of the city of Bangalore, as in 2009-10. While additions have been

definitely made in the last two or three years, no major facilities have been added to

the existing ones as reported in the table below. All additions and improvements made

in the infrastructures are discussed in the fifth chapter. The fifth chapter is on the

HOPCOMS and Fruits and Vegetables Marketing in the city of Bangalore. Other

related materials in the districts of our study are discussed in chapter six, which is a

discussion of the Farmers’ and Consumers’ Perspectives on HOPCOMS.

Table 3.14 reports of a total of 284 retail outlets, and 84 outlets operating in

factories (25), institutions (23), hostels (14), hospitals (18) and clubs (4), a total of

368 outlets. There are 5 outlets each in Bangalore (Urban and Rural together) and

Kolar districts which cater to chemicals and fertilizers to the farmers who are

producers of horticultural crops on subsidy from the Government. There is just one

cold storage at Bangalore Hudson circle which is used for cold storing perishable

fruits and vegetables but its capacity is very limited and it acts as a transitional storage

for the crops procured by the HOPCOMS requiring such storage. There are two

mobile (walking) coolers, one in Bangalore and another in Kolar. Bangalore city has a

grading unit as well, where horticultural products are graded for packaging. There are

7 procurement centres, one each at Sarjapura, Hosakote, Channapatana, Malur,

Doddballapura, and Nelamangala. While there is a weigh bridge in Bangalore, there

are 18 storage centres or godowns, of which 10 are for vegetables, 7 are for fruits and

1 is for dry fruits.

As of now (2013-14) there are 324 HOPCOMS outlets, with 285 operating at

the city of Bangalore, 20 in Kolar district, 10 in Chikkaballapura district, 5 in

Bangalore Rural district, and 4 in Ramanagara district, of which the present study is

concerned about, as consumers of the institutional outlets are not covered in the study.

These are individual outlets operating with administrative staffs on the pay rolls of the

HOPCOMS.


119

Table 3.14: Infrastructures for Marketing of Fruits and Vegetables HOPCOMS

(as in 2009-2010)

No. Particulars Area Number

1 Retail outlets Bangalore Urban district 237

Bangalore Rural district 15

Kolar district 24

Chikkaballapura district 6

Ramanagara district 2

2 Other places Factories 25

Institutions 23

Hostels 14

Hospitals 18

Clubs 4

3 Chemicalsand Fertilizers Bangalore Rural and Bangalore Urbandistricts 5

Kolar district 5

4 Cold Storage Bangalore Hudson Circle 1

5 Vehicles Bangalore Rural and Bangalore Urbandistricts 28

Kolar district 2

6 Processing Units Bangalore Hudson Circle 1

7 ‘Walking’ (mobile)Cooler Bangalore 1

Kolar district 1

8 Grading Unit Bangalore 1

9 Procurement centres Sarjapura 1

Hoskote 1

Channapatana 1

Kanakapura 1

Mallur 1

Doddaballapura 1

Nelamangala 1

10 Weigh bridge Bangalore 1

11 Storage centres Vegetables 10

(Central Godown) Fruits 7

Dry Fruits 1

Source: Department of Horticulture and Reports of HOPCOMS Head Office, Lalbagh 2012.


120

3.19 Opening Balances, Purchases, Marketing and Closing Balances of Fruits

and Vegetables

This chapter reports finally on the opening balances, procurement (or

purchases), marketing and closing balances of the godowns in the city in regard to

fruits and vegetables marketed through the HOPCOMS outlets in the city. As

indicated before, marketing of fruits and vegetables through HOPCOMS is discussed

in chapter five in greater detail with data and analysis. On any given day, the godowns

both receive and release only a small proportion of the fruits and vegetables marketed

through the HOPCOMS outlets.

Table 3.15 shows that for fruits, the opening balance of fruits was as follow

for the 4 years shown on the table: 26 thousand kg in 206-07, 38 thousand kg in 2008-

09, 37 thousand kg in 2010-11, and 30 thousand kg in 2013-14. Their value for the

respective years are: Rs. 183 thousand, Rs. 413 thousand, Rs. 525 thousand, and Rs.

622 thousand. The godowns have thus been storing variable quantities of fruits and

therefore of variable values of the stock, depending on their market value at that time.

The HOPCOMS has procured or purchased through their procurement centres

variable amounts of fruits from the arrivals at these centres and they were then put

into the godowns for marketing through the outlets. In 2006-07, the quantity

purchased was 14.2 million kg at a value of Rs. 141.3 million; likewise, the

HOPCOMS purchased 12.3 million kg at Rs. 151.6 million in 2008-09, 13.5 million

kg at Rs. 142.6 million in 2010-11 and 10.8 million kg at Rs. 270.4 million in 2013-

14. The marketed quantities and their values through the years also varied, as follows:

as much as 14.1 million kg of fruits were marketed at Rs. 185.2 million in 2006-07,

122 million kg at Rs. 208 million in 2008-09, 11.2 million kg at Rs. 210.3 million in

2010-11 and 10.7 million kg at Rs. 357.3 million in 2013-14.

Closing balances after marketing again presents the status of godown

leftovers/storages at the end of year. Only a small amount of fruits, mainly those not

sold, and may even be the discarded, remain as closing balances. It was 35 thousand

kg valued at Rs. 250 thousand in 2006-07, 63 thousand kg at Rs. 597 thousand in

2008-09, 56 thousand kg at Rs. 624 thousand in 2011-12, and 25 thousand kg at Rs.

776 thousand in 2013-14. On a daily basis, there are always some good amount of


121

fruits and vegetables are dumped as wastes because they are no more useable and

such quantities are considerably valuable but lost once and for all.

At the end of marketing, there is considerable profits for the HOPCOMS even

despite the fact that they offer farmers and consumers fair prices and fairly good

quality of fruits and vegetables. The profits from fruit marketing was Rs. 44 million or

24 per cent of the returns from marketing in 2006-07, which rose marginally to 27 per

cent (Rs. 56.7 million) in 2008-09, only to fall back to 24 per cent in the next two

years (Rs. 65.5 million in 2010-11 and Rs. 87 million in 2013-14). The HOPCOMS,

for a fair cooperative organization, does make a good profit from the sale of fruits as

shown by their own records.

Panel 2 of the Table 3.15 shows the opening balances, purchases, marketing,

closing balances and profit for vegetables. On a quick glance, it appears that the

quantities in opening balance, purchases, marketing as well as closing balance are

smaller than reported for fruits, even as their values are rather higher than those of the

fruits. The opening balance in the godowns was 28 thousand kg at Rs. 487 thousand

in 2006-07, 41 thousand kg at Rs. 1.09 million in 2008-09, 27 thousand kg at Rs. 1.25

million in 2010-11, and 23 thousand kg at Rs. 1.64 million in 2013-14. The purchases

made through procurement in the stated years varied as usual and it was 10.4 million

kg valued at Rs. 163 million in 2006-07, 9.6 million kg at Rs. 261 million in 2008-09,

11.9 million kg at Rs. 212 million in 2010-11, and 12 million kg at Rs. 336 million in

2013-14. Note the value of vegetables purchased over the years was higher with the

changing years.

Table 3.15: Fruits and Vegetable at HOPCOMS Godowns in Bangalore

Panel 1: Fruits

Fruits Opening Balance Purchases Marketing Closing Balance Profit % to

total

Year

Qty. in

‘000 Kg

Values

Rs. in ‘000

Qty. In

million kg

Values Rs.

in million

Qty. in

million kg

Values Rs.

in million

Qty. in

‘000 kg

Values

Rs. in ‘000

Rs. In

million

2006-07 26 183 14.2 141.3 14.1 185.2 35 250 44.0 24

2008-09 38 413 12.3 151.6 12.2 208.0 63 597 56.7 27

2010-11 37 525 13.5 142.6 11.2 210.3 56 634 65.5 24

2013-14 30 622 10.8 270.4 10.7 357.3 25 776 87.0 24


122

Panel 2: Vegetables

Veg. Opening Balance Purchases Marketing Closing Balance Profit

% to total

Year Qty. in

‘000 Kg Values ‘000 Rs.

Qty. in million

kg

Values million

Rs.

Qty.in million

kg

Values million

Rs.

Qty. in ‘000 Kg

Values ‘000 Rs.

Million Rs.

2006-07 28 487 10.4 163 10.2 212 23 562 49.1 24

2008-09 41 1,089 9.6 199 9.5 261 5 1,113 61.8 23

2010-11 27 1,254 11.9 212 9.5 316 26 1,675 86.3 24

2013-14 23 1,637 12.0 336 8.9 437 33 2,469 101.2 23

Source: Department of Horticulture and HOPCOMS 2014.

Marketing through the same outlets of the HOPCOMS are reportedly more or

less the same as the purcases made but they fetched better prices and therefore value

for the HOPCOMS. In 2006-07, the vegetables marketed was 10.2 million kg valued

at Rs. 212 million, in 2008-09 it was 9.5 million kg valued at Rs. 261 million, in

2010-11 it was again 9.5 million kg valued at Rs.316 million and in 2013-14 it was

8.9 million kg valued at Rs. 437 million. Notably, the value of purchased quantities

were lower but the marketed (quantities were lower than the purchased) vegetables’

monetary values higher. The closing balances reported for the stated years are as

follows: in 2006-07 it was 23 thousand kg valued at Rs. 562 thousand, in 2008-09 it

was just 5,000 kg valued at Rs. 1.11 million, in 2010-11 it was 26 thousand kg valued

at Rs. 1.7 million and in 2013-14 it was 33 thousand kg valued at Rs. 2.47 million.

Note here that the value of closing balances is relatively higher than for the balances

of fruits discussed earlier. The profit from the sale of vegetables in all the years

reported here was higher than that of the profit from fruits above. It was Rs. 49.1

million in 2006-07 (24 per cent), Rs. 61.8 million in 2008-09 (23 per cent), Rs. 86.3

million in 2010-11 (24 per cent), and Rs. 101.2 million in 2013-14 (23 per cent). Note

the profits from vegetable sales remaining more or less the same in terms of shares

rather than actual amount.


123

3.20 Conclusion

The discussion in the chapter has been on three aspects of our theme of

research, namely, horticultural crops, fruits and vegetables among them, and the

HOPCOMS. A careful and elaborate profile of the study area, of six districts of

Karnataka State, including one of the State has been made with a view to elaborating

on the horticultural scene of the State. Only spatial analysis of the patterns of

cultivation and production has been extensively made. In the case of fruits and

vegetables, which are our direct concern in the study, for purposes of comparison,

global (world countries, particularly top ten countries and others), national (India),

regional (Karnataka) and local (six districts of Karnataka: Bangalore Urban,

Bangalore Rural, Chikkaballapura, Kolar, Ramanagara, and Tumkur) aspects of the

two groups of horticultural crops have been discussed. In the global and national

contexts of fruits and vegetables, however, only a spatial perspective has been

emphasised in terms of area under cultivation, and production of fruits and vegetables.

In regard to regional and local contexts of fruits and vegetables, both spatial and

temporal patterns of area under production, production, yield per ha and monetary

value of production have all been discussed threadbare using available data for the

State and the six districts. Wherever possible, especially where temporal data have

been analysed, the compound annual growth rate in all of the aspects (area,

production and value of production) has been estimated to give an understanding of

the nature and magnitude of the trends in horticultural crops as a whole and fruits and

vegetables separately. The impression gained from the analysis is that the State and

districts under study have had great horticultural potentials which have been used and

streamlined by the use of cooperative principles through the HOPCOMS which have

benefitted both the producers (farmers) and the consumers (mainly Bangalore city

people). Vegetables are far higher in importance than fruits among the horticultural

crops, in fact, in area, production, yield, and value of production, has also been

brought out through the discussion.

Documents

CHAPTER III A PROFILE OF THE STUDY AREA ...shodhganga.inflibnet.ac.in/bitstream/10603/92070/11/11...Profile of the Study Area 60 CHAPTER III A PROFILE OF THE STUDY AREA: KARNATAKA