Upload
dodiep
View
225
Download
0
Embed Size (px)
Citation preview
Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune
RAJASTHAN AGRICULTURAL COMPETITIVENESS PROJECT
Value Chain Analysis
Barley
Prepared by:
AGRI BUSINESS PROMOTION FACILITY
Value Chain Analysis - Barley i
Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune
Contents
Page
List of Tables iii
List of Figures iv
Executive Summary: Barley 1
Chapter 1- Introduction 5
1.1. Global Scenario 5
1.2. Indian Scenario 10
1.3. State Scenario: Production 14
1.4. District and cluster scenario: Production 14
1.5. Approach to Value Chain Analysis 17
Chapter 2- Pre Harvest Management 18
2.1. Major commercial varieties Grown in Rajasthan 18
2.2. New initiatives and Practices 22
2.3. Seasonality Pattern of Barley in Rajasthan visa-vis other parts of the world 22
2.4. Land Preparation 23
2.5. Sowing/Planting/Cultivation 23
2.6. Climatic and Soil Requirement 24
2.7. Nutrients Management 24
2.8. Water management 24
2.9. Weed Management 24
2.10. Pest & Disease Management 25
2.11. Recommended Good Agriculture Practices 28
2.12. Harvesting 28
2.13. Pre Harvest constraints of Farmers 29
Chapter-3: Post-Harvest Management 30
3.1. Post - Harvest Losses, Harvesting Care and Post – Harvest Equipment 30
3.2. Grade Specification & Grading at Producer level 30
3.3. Major storage Disease and Pest and their Control Measure 31
Chapter 4- Cost of production and Net value accruals to producers 35
Chapter 5- Supply Chain of commodity 36
Value Chain Analysis - Barley ii
Member firm of Grant Thornton International Ltd Offices in Bengaluru, Chandigarh, Chennai, Gurgaon, Hyderabad, Kochi, Kolkata, Mumbai, New Delhi, Noida and Pune
5.1. Seasonal Availability and Price Pattern 36
5.2. Existing value chain Channels 38
5.3. Alternative Systems of Marketing 40
Chapter 6- Processing Infrastructure availability and utilization 43
6.1. Processing 43
6.2. Stakeholder’s Share in Consumer Rupee 46
6.3. Price build up & Marketing Efficiency Analysis 47
6.4. Consumer preference Analysis 47
Chapter 7- Existing Institutional support and Infrastructure facility 48
7.1. Support at cultivation stage 48
7.2. Support at post-harvest stage 53
Chapter 8- Gap & Constraint Analysis 56
8.1. As Perceived by Producers and Other Stakeholders 56
8.2. SWOT Analysis of the Value Chain of Barley 58
8.3. Key constraints in Barley crop: 59
8.4. PIESTEC Framework 60
8.5. Impact of GST over barley value chain: 62
Chapter 9- Proposed Intervention and Investments 63
9.1. Intervention areas for Value chain strengthening/restructuring 63
9.2. Envisaged Post-intervention value chain map of barley 67
9.3. Conclusion 72
References 73
Annexure 1: Stakeholders consulted over the study 75
Annexure 2: List out Central Warehousing Corporation (CWCs) in Rajasthan 77
Annexure 3: List of State Warehousing Corporation (SWCs) in Rajasthan 80
Annexure 4: Price variation of Barley in Rajasthan 82
Annexure 5: Rural Godowns in Rajasthan 86
Annexure-6: Product wise GST rates of Food Products 90
Value Chain Analysis – Barley iii
© Grant Thornton India LLP. All rights reserved.
List of Tables
Table 1: Top 10 Barley Production Countries in 2013 ................................................................................. 6 Table 2: Export of Barley in 2014 .................................................................................................................... 7 Table 3: Major Importing Countries in Barley in 2014-15 ........................................................................... 8 Table 4: The Top 5 Largest Beer Brewing Companies in the World ....................................................... 10 Table 5: Year wise production of Barley in India ........................................................................................ 10 Table 7: Growth rate of Rabi Crops at All India level during 1980s, 1990s and 2000s ........................ 11 Table 8: Barley Production state wise (‘000MT) .......................................................................................... 13 Table 9: State Wise percentage area coverage and production.................................................................. 14 Table 10: District-wise production (‘000 tonnes) of Barley in top 5 districts of Rajasthan ................. 14 Table 11: Consultations of stakeholders for Value chain Analysis (Details in Annexure – 1) ............. 17 Table 12: Varieties of Barley in Rajasthan .................................................................................................... 18 Table 13: Seasonal Availability Pattern ......................................................................................................... 22 Table 14: Spacing and Seed Rate .................................................................................................................... 23 Table 15: Nutrient management of Barley ................................................................................................... 24 Table 16: Weed management .......................................................................................................................... 24 Table 17: Diseases of barley at cultivation stage.......................................................................................... 25 Table 18: Pests of barley at cultivation stage ................................................................................................ 26 Table 19: Special characteristics of barley for grading under AGMARK ............................................... 31 Table 20:Cost of Production .......................................................................................................................... 35 Table 21: Arrivals of Barley in various markets of Rajasthan in 2016-17 ................................................ 36 Table 22: Modal price trend of Barley in Alwar mandi in last 3 years ..................................................... 37 Table 23: List of market fees .......................................................................................................................... 40 Table 23 Price spread table of Barley (Illustrative for sale of barley flour used for preparing mix flour0 .................................................................................................................................................................. 46 Table 24: Tax Structure ................................................................................................................................... 62 Table 26: Yield loss and interventions for Value chain of barley ............................................................. 69
Value Chain Analysis – Barley iv
© Grant Thornton India LLP. All rights reserved.
List of Figures
Figure 1: Major Exporting Countries in Barley 2014 .................................................................................... 7 Figure 2: Major Importing Countries in Barley in 2014 ............................................................................... 8 Figure 3: World's top malt exporters, 2007 .................................................................................................... 9 Figure 4: World's top malt importers, 2007 ................................................................................................... 9 Figure 5: Production of barley in 1000 MT .................................................................................................. 11 Figure 6: Barley Production State Wise ......................................................................................................... 13 Figure 7: Price range of Barley in past 3 seasons ......................................................................................... 38 Figure 9:Consultation with MNCs and Value Chain Leaders ................................................................... 57 Figure 10: Indicative Post Intervention value chain map of Barley ......................................................... 68 Figure 11:FPC Development Approach ....................................................................................................... 70
Value Chain Analysis – Barley 1
© Grant Thornton India LLP. All rights reserved.
Executive Summary: Barley
Barley (Hordeum vulgare L.) is the most widely grown cereal crop over broad environmental
conditions and is the world’s fourth important cereal crop after wheat, maize and rice. Barley is
more tolerant to soil salinity than wheat, has a shorter growing season and is also relatively drought
tolerant and requires around 0ne fifth the water required for wheat. Barley consumption apparently
has a range of health benefits by way of regulation of blood sugar and reducing cholesterol levels in
the blood. Its appearance resembles wheat grains, although it is slightly lighter in color and is more
fibrous in nature. Food barley is principally cultivated for traditional foods and local beverages in
various parts of the world. De-hulled barley is used to prepare a number of food items like flour,
flakes etc. Barley is also a popular animal feed grain. Sprouted barley is naturally high in maltose, a
sugar that serves as the basis for both malt syrup sweetener. Fermented, barley is used as an
ingredient in beer and other alcoholic beverages. Malt barley, due to its limited usage and high-
quality requirements, is a unique niche product in international grain market representing about
1.5% of the total world grain production (USAID, 2014). It is particularly interesting in the context
of smallholder commercialization and food security since it has high value as both cash and food
crop. It is also the major raw material (about 90% of the total raw material cost) used in beer
production. Despite the available potentials and opportunities for malt barley production and high
market demand, farmer`s market orientation of malt barley in India and particularly in Rajasthan is
quite low. Market oriented production can allow farmers to increase their income by producing
output with higher return to land and labor in comparasion to wheat. Thus malt barley producers`
market orientation in production is important in order to identify the bottlenecks of malt barley
production; to meet the demand of breweries in the country, promote water use efficiency in
agriculture and to enhance agricultural transformation.
In the global context, around 144 million tonnes of barley is being produced annually, out of which
around 14% is being produced by the Russian Federation followed by France and Germany.
Australia, Ukraine and Canada are also important producers. India ranks 14th with production of
about 1.5 million tonnes with 1% share in global production. Global demand is significant for beer
production and value chain leaders include Soufflet (for malt production) and SABMiller (U.K.) and
Heineken (Netherlands) and Carlsberg (Denmark) for beer production. Alwar district in Rajasthan
has a significant place in the Indaian brewery industry with most of the significant players having
their malting/ brewing industry in the district.
In India, Barley is one of the most widely cultivated cereal crops. The major producing states are
Rajasthan, U.P., Haryana and Punjab. Rajasthan amounts for about 40-50% and U.P. for 25-30% of
total production. Malt Barley cultivation is currently popular in Punjab and Haryana. Mostly local
varieties are used in Rajasthan and UP for self-consumption.
Value Chain Analysis – Barley 2
© Grant Thornton India LLP. All rights reserved.
Rajasthan ranks second in terms of acreage and tops in terms of production of Barley. The major
producing districts include Jaipur, Sriganganagar, Sikar, Ajmer, Alwar and Chittorgarh. It is also
emerging in Bundi, Baran, Tonk and Kota.
A range of Barley varieties are grown in Rajasthan. These include BL-2 “Rajkiran”, HYVs RD 2035
and RD 2552, Malt varieties like RD 2624 and RD 2660 are specially developed for adaptability in
rain-fed conditions. Pre-harvest constraints may be viewed in terms of necessary irrigation facility
(2-3 per crop) and a range of diseases and pests. Apart from these, awareness among farmers on
commercial varieties of barley is also a challenge. Inadequate access to appropriate storage facility,
grading and sorting and packaging are some critical constraints at the post-harvest stage.
Some important support institutions for Barley in Rajasthan are Department of Agriculture, Govt.
of Rajasthan who provides extensive support through their team of State/District/ Tehsil and
Panchayat level officials on; recommended package and practices for the crop, mini kits for crop
demonstration and subsidy support on certified seed distribution to farmers. Other support
structures of the Department of Agriculture are the Rajasthan State Seed and Organic Production
Certification Agency, The Rajasthan State Seeds Corporation Ltd, the State Institute of Agriculture
Management, Rajasthan State Warehousing Corporation, Department of Agriculture Marketing and
Rajasthan State Agriculture Marketing Board who contribute to the productivity, storage and market
linkage of the crop. Apart from this, there are various Krishi Vigyan Kendras around Jaipur, Alwar
and Kota attached through State Agriculture Universities/ ICAR also contribute in terms of seed
production, technology demonstration and post-harvest management of the crop. RARI, Durgapura
has also played a significant role in production of improved varieties of Barley contributing to both
production and productivity in the State. Other support institutions in Rajasthan include the ATCs
of the State Government who help in technology demonstration and scientific trial of various
varieties for recommending PoP for the various agro-climatic regions for the crop.
Sowing of Barley normally takes place in Nov-Dec. Harvesting starts from March- April. Major
markets in terms of arrival of barley in Rajasthan are Ganganagar, Jaipur, Sikar, and Hanumangarh.
The modal price of barley is in the range of Rs 1300- 1500 per quintal. Barley is covered under the
Minimum Support Price system of the Department of Agriculture, Cooperation & Farmers Welfare
of Govt. of India and the MSP has grown from Rs 550 in 2006-07 to Rs 1325 in 2017-181
Till a decade ago, the barley that farmers grew in semi-arid Haryana and Rajasthan due to water
scarcity would mostly be used as animal feed. Now, with international breweries keen to source
barley locally, these farmers are keen to increase their share in the value chain. In terms of marketing
arrangements and processing there is apparently scope for some amendments and enforcements in
the contract farming policy to encourage processor-producer linkages (in terms of mandi tax
exemption, stamp duty on contracts/individual farmer agreements etc.). Direct procurements by
processors from individual farmers or from storage/common facilities of FPCs is yet marginal.
Firms like Soufflet are presently sourcing (in case of this firm) around 20,000 tonnes per annum for
processing through APMCs as well as on the basis of MOUs with farmers. This is for Malt Barley.
However, as indicated, barley flour, flakes etc. are yet relatively untapped in the context of
processing and market options.
Considering processors in the value chain and production of about 30 quintals per acre, the gross
returns at Rs 1450 per quintal is about Rs 43500 per ha. The net accrual to farmers is about Rs
13750 per ha. The advantage in barley vis-à-vis wheat is that Barley requires only half (2-3 times)
irrigation. Many farmers presently earn Rs 300 more per quintal from cultivating wheat than barley.
1 http://fci.gov.in/procurements.php?view=89
Value Chain Analysis – Barley 3
© Grant Thornton India LLP. All rights reserved.
In this regard, there is scope to leverage interest of large firms like Soufflet and other
malting/brewering companies who could support increase yield per acre of barley by over 50%
through transfer of best practices and hence often ensure adequate value accruals to producers. Such
options will incentivise cultivation.
Key strengths of barley value chain are: It is less water intensive and highly suitable for semi arid
condition of Rajasthan, Demand for malt variety is growing and hence increase in scope of earning
of farmer.
Key weakness of barley value chain are: Is less remunerative as compared to wheat, Non awareness
of farmers on malt barley varieties and difficulty of processors to link directly with farmers.
Key opportunities in barley value chain are: Option through RACP for crop diversification from
wheat to barley, growing demand for malt industry, good value addition opportunity for barley as a
food grain.
Key threats for barley value chian are: Most of the crops economic potential lies with procurement
linked with malt companies and farmers fear for getting associated with such companies due to fear
of rejection.
Pre and Indicative Post-Intervention Value Chain of Barley
Pre Intervention Value Chain: Barley
The present value chain of barley has 3 distinct activity marketing or production-distribution
channels. In all these channels, farmers/producers supply commodities to the APMC through
village level traders. APMC commission agents, in turn supply them to malt processors and
thereafter malt barley is supplied to domestic brewers and distillers (Channel 1) and larger
international brewers and distillers (channel 2). In channel 3 feed and barley is supplied through
APMC commission agents to processors and then onward to domestic and global retailers. The
critical constraints in many locations is that the price realization from barley cultivation is lower than
that of wheat due to cultivation of local varieties, posing a challenge in increasing cropped area.
Generally in case of Barley grain, the share of farmers in consumer rupee is 49% , that of APMC
trader is 1%, Grain wholeseller is 3%, Processor is 26%, wholeseller is 7% and retailer is 14% .
Indicative Post Intervention Value Chain: Barley
In the envisaged post-intervention value chain of Barley, FPCs/farmer associations could bypass the
APMC and commission agents and undertake the value chain activities like aggregation and operate
common facilities (FCSCs) undertaking drying, storage, packaging and transportation. Upon these
primary processing and storage activities, the commodity may be supplied to SME as well as large
processers like “Soufflet and other large breweries/malting companies. Best Agricultural Practices,
seeds etc. supplied by processors could enhance the yield and productivity per acre encouraging
crop diversification. Many global players including Soufflet, SAB Miller and Carlsberg as well as
smaller local breweries are in operation in the region.
The FPCs could undertake a gamut of activities ranging from input facilitation (seeds, pesticides,
fertilisers), custom hiring in addition to providing common facility storage and primary processing
facilities. These could help in increasing net value accruals to farmers by 15-30%.
As a matter of fact, apparently through Soufflet’s intervention of undertaking “contract farming”
(on the basis MOUs) with about 3,500 farmers, the average net value accruals to contracted
Value Chain Analysis – Barley 4
© Grant Thornton India LLP. All rights reserved.
farmers/producers has increased by over 15-30%. In addition, individual enterprise start-ups could
be facilitated in secondary and tertiary processing of value-added barley products like oatmeal,
puffed and roasted barley etc.
The intervention plan of Barley may be broadly considered in the context of activities and
stakeholders in three stages- Production stage/ Cultivation by producers/farmers, post-harvest stage
and the processing stage. In the context of shift towards barley production to greater extent, the
production of apt food/malt barley production than feed barley is important. It should be
strengthened by adaption of best package of Agricultural Practices, capacity building of producers
and also to evolve local self-governance and market linkage institutions like FPCs. Undertaking
contract farming interventions are some of the interventions required to redress related constraints
at the production stage. At the post-harvest stage, major constraints are high content of immature
grains/dart and foreign materials in harvested barley, (largely) rain-fed irrigation and inadequate
storage facility are present. Well-designed FCSCs could help address these vices issues at the
farm/producer level. At the processing stage, gaps are most apparent, in terms of awareness
amongst processors and inadequate producer processor links etc. These may be reduced through
information dissemination and B2B initiatives matched with policy incentives (like mandi tax
exemption) to facilitate the same.
In the post intervention value chain, Gethe share of farmers in consumer rupee might still be at
49% , but the FPC may take the margin of additional 4% if it just bypasses the mandi and sells
directly to the processors. It is also estimated that, the farmers’ share might alos increase by another
10% of its existing share if the farmers sell to Malt processors through FPC.
Value Chain Analysis – Barley 5
© Grant Thornton India LLP. All rights reserved.
Chapter 1- Introduction
Origin and Importance
Origin: The exact origin of barley is debatable, possibly originating in Egypt, Ethiopia, the Near East
or Tibet. However, it is fairly certain that barley was among the earliest cultivated grains, around the
same time as domestication of wheat2. Barley was grown in the Middle East prior to 10,000 BC (6,
12, 13), but barley's cultivation in China and India probably occurred later. Barley was grown on the
Korean Peninsula by 1500-850 BC along with millet and wheat.
Barley is a rich source of nutrients like protein, B vitamins, niacin, dietary minerals, and dietary fibre.
The grain is a particularly good source of manganese and phosphorus. Raw barley is 78%
carbohydrate, 10% protein, 10% water, and 1% fat. De-hulled barley is used to prepare a number of
food items like flour, flakes, grits, etc. Barley in these forms can be used to make porridge, gruel, and
a wide variety of other dishes in Central and Eastern Europe. In Saudi Arabia, people consume
barley soup during Ramadan. Several other recipes in the Middle East like the murri, kashk, and
kashkak use barley.
Research suggests that barley consumption is beneficial in several ways. It reduces cholesterol levels
in the blood, improves the regulation of blood sugar, and has other health benefits too. However,
since barley contains gluten, it is not recommended for people with gluten-related disorders. Barley
is also extensively used in beer and whiskey production. Non-alcoholic beverages like barley water
and barley roasted tea are also produced from barley. In the US, half of the barley produced is used
to feed livestock. Barley is also the principal feed grain in Canada, Europe, and the northern US.
Barley is also used as an algicide in England where barley straw is placed in mesh bags and floated in
fish ponds to curb algal growth in a natural manner. Other ornamental and cultural uses of barley
are also found. 3
1.1. Global Scenario
Barley producing countries
In 2014, 144 million tons of barley was produced of which 14% was produced by the Russian
Federation, the top producing country. France and Germany ranked second and third in barley
production in the same year. In 2016, The European Union holds first rank in production of
Barley (59,744 MT) with about 41% share of the total world production followed by Russian
2Young, B. 2001. Barley; The Versatile Crop. Southern Illinois University, College of Science, Ethnobotanical Leaflets.
(http://archive.gramene.org/species/hordeum/barley_intro.html) (retrieved on April 9,2017)
3 World atlas, The leading barley producing countries(http://www.worldatlas.com/articles/the-leading-barley-producing-
countries-in-the-world.html)(retrieved on April 9,2017)
Value Chain Analysis – Barley 6
© Grant Thornton India LLP. All rights reserved.
Federation (12%), Australia (7%), Ukraine (7%) and Canada (6%). India ranks fourteenth in the
production of barley (1,510 MT) with 1 % share. Barley is a widely adaptable crop. It has a short
growing season and is also relatively drought tolerant. It is currently popular in temperate areas
where it is grown as a summer crop and tropical areas where it is sown as a winter crop. Its
germination time is one to three days. Barley grows under cool conditions, but is not particularly
winter hardy. Barley is more tolerant of soil salinity than wheat, which might explain the increase of
barley cultivation in Mesopotamia from the second millennium BCE onwards. Barley is not as cold
tolerant as the winter wheats (Triticum aestivum) but may be sown as a winter crop in warmer areas
of Australia and Great Britain.
Russian Federation was the major producer of Barley in the year 2013 with an annual production of
1, 53, 88,704 MT which contributes to 10.56% of the total share. Germany is next to Russian
federation with an annual production of 1, 03, 43,600 MT. France, Canada, Spain and Turkey are
some of the major producers of barley in the world.
Table 1: Top 10 Barley Production Countries in 20134
S. No. Country Production ( In MT) Share(%)
1 Russian Federation 1,53,88,704 10.56
2 Germany 1,03,43,600 7.1
3 France 1,03,15,900 7.08
4 Canada 1,02,37,100 7.03
5 Spain 1,00,57,600 6.9
6 Turkey 79,00,000 5.42
7 Ukraine 75,61,650 5.19
8 Australia 74,71,592 5.13
9 United Kingdom 70,92,000 4.87
10 Argentina 47,05,160 3.23
Total 9,10,73,306 62.51
Source: USDA
Global Exports:
Australia was the major exporter of barley in 2014 along with France, Argentina, and Canada The
production is measured in MT and the value is measured in terms of ‘000 US $.
4 APEDA Agrixchange, International Production (http://agriexchange.apeda.gov.in) retrieved on April 9,2017)
Value Chain Analysis – Barley 7
© Grant Thornton India LLP. All rights reserved.
Figure 1: Major Exporting Countries in Barley 2014
Table 2: Export of Barley in 20145
S No.
Country Quantity (MT) Value (‘000 US $)
1 Australia 42,94,602 12,39,406
2 France 38,05,421 9,84,292
3 Argentina 11,13,481 3,34,799
4 Canada 6,85,048 2,21,819
5 United Kingdom 8,71,077 2,07,504
6 Germany 8,03,877 2,07,026
7 Ukraine 7,92,307 2,01,268
8 Russian Federation 6,76,263 1,54,692
9 Romania 4,95,235 1,31,969
10 Denmark 2,81,867 86,687
Total 1,38,19,178 37,69,462
Source: USDA
Global Imports
China was the major importer of barley in 2014. It imports 54, 13,279 MT of barley which account
for whooping 15, 73,838 (‘000 US $), next to it was Belgium with an annual import of 17, 24, 020
MT.
5 APEDA AgriXchange , FAO, Major exporters, (http://agriexchange.apeda.gov.in) retrieved on April 9, 2017)
-
500,000.00
1,000,000.00
1,500,000.00
2,000,000.00
2,500,000.00
3,000,000.00
3,500,000.00
4,000,000.00
4,500,000.00
5,000,000.00
QTY
Value Chain Analysis – Barley 8
© Grant Thornton India LLP. All rights reserved.
Figure 2: Major Importing Countries in Barley in 2014
Table 3: Major Importing Countries in Barley in 2014-15
Sr. No. Country Quantity (MT) Value(‘000 US $)
1 China 54,13,279 15,73,838
2 Belgium 17,24,020 4,42,891
3 Netherland 18,93,450 4,38,404
4 Jordan 9,38,313 2,55,996
5 Algeria 7,70,222 1,96,613
6 Turkey 6,75,994 1,64,189
7 Kuwait 5,70,751 1,45,181
8 Brazil 3,99,877 1,26,281
9 Spain 4,01,963 94,294
10 Israel 3,43,432 87,495
Total 1,31,31,301 35,25,182
6As per USDA, the total barley production in the world was 129.0 million tonnes in 2012-13 out of
which 14.3 per cent is traded. EU- is the biggest producer of barley accounting for 41.3 per cent
share. Other major producers of barley in the world in 2012-13 are Russia (10.1 per cent), Ukraine
(6.3 per cent), Canada (6.1 per cent) and Australia (6.1 per cent). Ukraine, France and Russia are the
major exporters. As per DGCI&S, India’s exports of barley were negligible from 2001-02 to 2006-
07, but increased to 0.35 million tonnes in 2007-08 and stood at 0.27 million tonnes in 2012-13.
India’s imports of barley are nil. Quantitative ceiling on export of barley was removed w.e.f. 5th
March, 2002, and since then export of barley continues to be free. Import of barley was made free
w.e.f. 14th November, 2002, and it continues to be under OGL at zero import duty. The domestic
wholesale prices of barley (Jaipur) and MSP of barley have been compared with the international
prices of Barley, Canadian Western No.1, Winnipeg, during the period from 2001-02 to 2012-13.
The domestic wholesale prices of barley have been generally higher than international prices of
barley during the period from 2001-02 (Q1) to 2012-13 (Q4). This indicates that Indian barley may
6 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=40&KeyId=477
-
1,000,000.00
2,000,000.00
3,000,000.00
4,000,000.00
5,000,000.00
6,000,000.00 Major Importing Countries
Quantity
Value Chain Analysis – Barley 9
© Grant Thornton India LLP. All rights reserved.
not be very competitive as an exportable commodity beyond its neighbors, given the freight costs
etc. But since India’s exports are mainly to countries like UAE, Oman, Bhutan and Nepal which are
nearer to India than the major barley exporting countries like Australia, EU-27 countries, Ukraine,
Russia, Argentina and Canada, the difference in freight charges explains why it is still possible for
India to export barley to nearby countries.
Malt barley
Global production
International maltsters are currently facing some challenges. Japanese malt demand has been
declining due to economic conditions and lower sales of full malt beer. Other malt markets such as
Brazil have been very competitive in recent years due to imports of lower quality and lower priced
winter barley from the EU. New malting capacity in the EU, the Russian Federation, and Ukraine
are also increasing competition in offshore malt markets. Most of the growth in demand for malting
barley and malt during the next five years will be in countries with rapidly expanding beer
production, e.g. China (18% growth), the Russian Federation and Eastern Europe (17% growth),
South America (17% growth) and Africa (21% growth).
Figure 3: World's top malt exporters, 2007
Figure 4: World's top malt importers, 2007
Top 5 Beer Producing Companies in the World
Data is on top 5 beer production units by brewery for the year 2013 and is in millions of hectolitres.
(1 hectolitre = 100 litres). Percent change is from the year 2012. Country is where the global head
offices are located. (Please note: The figure from SABMiller does not include the 57.4 million hl
from shareholding in China Resources Snow Breweries. Following list is the latest available data as
of November 26th, 2014.
Value Chain Analysis – Barley 10
© Grant Thornton India LLP. All rights reserved.
Table 4: The Top 5 Largest Beer Brewing Companies in the World7
S.No Company Country
Production
Volume( In
hectolitre, hl)
% of World Beer
Production
% Change
from 2012
1 Anheuser-Busch InBev Belgium/Brazil 399.0 20.20% 13.00%
2 SABMiller U.K. 187.4 9.50% -1.30%
3 Heineken Netherlands 178.3 9.00% 3.80%
4 Carlsberg Denmark 119.7 6.10% -0.50%
5 China Resource Snow
Brewery Ltd. China 117.1 5.90% 10.20%
(Sources: Anonymous (Barth Reports 2000 - 2014.))
1.2. Indian Scenario
In India, barley is one of the most widely cultivated cereal grain crops. This is cultivated as a
summer crop in temperature regions and as a winter crop in tropical regions. Barley is a short
growing season crop and has good drought tolerant. Production of Barley India for the last ten years
is presented in the table below:
Table 5: Year wise production of Barley in India8
Market Year Production (In 1000 MT) Growth Rate
Y2006 1221 1.16%
Y2007 1328 8.76%
Y2008 1196 -9.94%
Y2009 1689 41.22%
Y2010 1355 -19.78%
Y2011 1663 22.73%
Y2012 1619 -2.65%
Y2013 1752 8.21%
Y2014 1831 4.51%
Y2015 1613 -11.91%
Y2016 1510 -6.39%
Source: USDA
The trend shows a mixed result with the production figures fluctuating around 1600 thousand MT
since 2009. The reason possibly being the direct competition of barley with Wheat and Mustard in
north India. Also good rainfall during 15-16 and 16-17 also boosted production of wheat and
mustard and hence overall production of barley is negative in last two years. The major producing
states of Barley in India are Rajasthan, Uttar Pradesh, Madhya Pradesh, Haryana, Punjab and West
Bengal. Barley is grown for many purposes, but the majority of all barley is used for animal feed or
malting. High protein barleys are generally valued for food and feeding, and starchy barley for
malting. Barley is a good livestock feed and is a good source of protein. It can be rolled, ground,
flaked or pelleted, but by-products from malting and brewing are also used in feed production.
Barley is also used for pasture, green feed, hay, roughage and bedding.
7 Anonymous (http://www.barthhaasgroup.com) (retrieved on April 9,2017) 8 USDA(* Estimates),(Unit –Million Tonnes) (http://www.karvycommodities.com/Presentations/Commodity%20Module_Barley.pdf) (retrieved on
April 9, 2017)
Value Chain Analysis – Barley 11
© Grant Thornton India LLP. All rights reserved.
Table 6: Growth rate of Rabi Crops at All India level during 1980s, 1990s and 2000s
Crop 1980s 1990s 2000s
A P Y A P Y A P Y
Barley -5.4 0.6 5.9 -2.7 0.6 3.2 0.2 2.1 1.7
Note: A-Area, P-Production and Y – Yield per ha9
The above table shows, the area under barley has de-grown during 1980s and 1990s and has been
almost stagnant in decade 2000s. It can thus be inferred that the area under Barley has not grown
much since decades. The reason being the increase in area and productivity of wheat and other rabi
crops such as Mustard and pulses in north-central India which has around 80% of area for total
barley produced in India.
Figure 5: Production of barley in 1000 MT
9 http://cacp.dacnet.nic.in/ViewReports.aspx?Input=2&PageId=40&KeyId=477
0
200
400
600
800
1000
1200
1400
1600
1800
2000
Production (In 1000 MT)
Production (In 1000 MT)
Value Chain Analysis – Barley 12
© Grant Thornton India LLP. All rights reserved.
Selected state wise Area, Production and Productivity of Barley crop In India (2013-14, 2014-
15 and 15-16)
States/UT
Area Production Productivity
(In ' 000 Hectare) (In ' 000 MT) (In Kg./Hectare)
2013-14
2014-15
2015-16
2013-14
2014-15
2015-16
2013-14
2014-15
2015-16
Bihar 10.2 12.1 10.7 14.3 13.4 13.9 1398 1109 1304
Chattisgarh 2.6 2.3 2.4 3.7 3.0 1.2 1423 1304 500
Delhi 0.1 0.1 0.1 0.2 0.2 0.0 3000 3167 291
Gujarat - - 13.0 - - 17.0 - - 1308
Haryana 39.0 33.0 29.0 153.0 105.0 99.0 3923 3182 3414
Himachal Pradesh
17.3 21.7 19.2 28.2 37.8 34.3 1626 1739 1786
Jammu and Kashmir
12.5 6.7 6.7 7.1 4.0 4.1 567 602 622
Jharkhand - - - - - - - - -
Madhya Pradesh
86.7 83.0 97.0 150.0 104.3 176.2 1730 1257 1817
Maharashtra - - - - - - - - -
Nagaland 0.5 0.5 0.5 0.5 0.5 0.5 1019 1019 1019
Punjab 12.0 11.0 9.0 46.0 39.4 33.3 3833 3582 3700
Rajasthan 309.
3 343.
3 256.
0 942.0 962.4 766.4 3046 2803 2993
Sikkim 0.6 0.5 0.5 0.6 0.5 0.5 1017 1020 1044
Uttar Pradesh
157.0
170.0
124.0
450.0 315.0 269.0 2866 1853 2169
Uttarakhand 23.3 21.3 18.9 31.5 24.5 18.5 1351 1149 983
West Bengal 2.4 2.0 2.5 3.6 3.0 3.5 1500 1500 1400
India 673.
5 707.
5 589.
4 1830.
7 1613.
0 1437.
5 2718 2280 2439
Source: Ministry of Agriculture and Farmers Welfare, Govt. of India. (ON1394) & Past Issues.
Haryana and Punjab have reported highest productivity of Barley in India touching around 38 to 39
quintals per ha. The productivity of Rajasthan has been at around 30 quintals per ha.
Exports and Imports
Calendar Year Total Supply (In million tonnes) Total Demand (In million tonnes)
Imports Production Exports Consumption
2007-08 0 1.33 0.35 1
2008-09 0.003 1.22 0.17 1
2009-10 0 1.69 0.05 1.5
2010-11 0.002 1.35 0.03 1.35
2011-12 0 1.66 0.05 1.55
2012-13 0.04 1.62 0.27 1.53
2013-14 0.05 1.74 0.45 1.2
2014-15 0.05 1.7 0.1 1.5
Source: USDA (* Estimates), (Unit – Million Tonnes)
India’s annual production has been stable at 1.2-1.7 million tonnes in recent years although
production is low, the country is self-sufficient, besides exporting an average of 0.1-0.2 million
tonnes of barley annually. The imports are also not really significant as per the table above. The area
Value Chain Analysis – Barley 13
© Grant Thornton India LLP. All rights reserved.
under cultivation has also remained stagnant at 0.7-0.8 lakh hectares, with a per-hectare yield of
around 2,000 kg.
Table 7: Barley Production state wise (‘000MT)
State 2009-10 2010-11 2011-12 2012-13
Rajasthan 619.80 954.80 789.15 852.58
Uttar Pradesh 362.00 333.56 404.00 446.00
Haryana 137.00 129.00 153.00 167.00
Madhya Pradesh 110.00 103.00 138.30 144.92
Punjab 47.00 44.00 47.00 47.00
Himachal Pradesh 16.20 27.74 30.39 36.25
Uttarakhand 26.00 30.10 28.00 30.73
Bihar 12.90 25.10 16.69 15.23
Jammu & Kashmir 7.86 8.67 4.20 6.95
West Bengal 2.40 2.80 3.34 3.50
Others 13.50 4.10 4.58 2.29
All India 1354.66 1662.87 1618.65 1752.45
Source: Ministry of Agriculture
Figure 6: Barley Production State Wise
Overall India’s barley production has increased by about 35.05 per cent over the decade (2003-13).
During the above period the maximum growth in production was seen in Haryana (128.76 per
cent). The other top three barley growing states with significant growth in production are Rajasthan
(108.56 per cent), Madhya Pradesh (17.63 per cent) and Himachal Pradesh (16.94 per cent).10
10
Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research-reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017)
0
200
400
600
800
1000
1200
2009-10
2010-11
2011-12
2012-13
Value Chain Analysis – Barley 14
© Grant Thornton India LLP. All rights reserved.
Table 8: State Wise percentage area coverage and production
States % share of Area Coverage % share of Production
Rajasthan 30 40
Uttar Pradesh 34 31
Madhya Pradesh 12 9
Others 24 20
In India, barley is largely grown in the states of Uttar Pradesh, Rajasthan and Madhya Pradesh, with
area contribution of 34%, 30% and 12%, respectively. Rajasthan ranks second in terms of acreage
and tops in terms of production. Rajasthan accounts for 40% of total production followed by Uttar
Pradesh (31%), Madhya Pradesh (9%) and Haryana (6%)
1.3. State Scenario: Production
Over half of the barley grown in the state is of two-row variety, which is processed into barley flour
and blended with wheat flour to make flat bread. The crop residue is used as animal feed by farmers.
Due to extensive usage of corn as food, very small quantity of barley is used in feed manufacturing
industry in India. A discussion on Two row Vs six row variety of barley is given chapter 2.
The spot prices for barley in the Jaipur market in India have increased by 33.41 per cent
over 2016-17 from that of 2015-16. The average price of barley in May 2016 was Rs 1131.6 per
quintal.11
1.4. District and cluster scenario: Production
The major producing districts of Barley in Rajasthan are Jaipur, Ganganagar, Sikar, Ajmer and
Hanumangarh. Jaipur is the top barley producing district in the state having (180,062 MT)
production. The top 5 Barley producing districts in Rajasthan are given below:
Table 9: District-wise production (‘000 tonnes) of Barley in top 5 districts of Rajasthan
Districts Production (In MT)
Jaipur 180,062
Ganga Nagar 124,436
11
Dr M. Ketharaj S. Jeyakumar, Barley Production on Rise, 2010 (http://www.efymag.com/admin/issuepdf/Barley_May10.pdf) (retrieved on April 9,2017)
30%
34%
12%
24%
% share of Area Coverage
Rajasthan Uttar Pradesh
Madhya Pradesh Others
40%
31%
9%
20%
% share of Production
Rajasthan Uttar Pradesh
Madhya Pradesh Others
Value Chain Analysis – Barley 15
© Grant Thornton India LLP. All rights reserved.
Sikar 101,505
Ajmer 43,542
Hanumangarh 38,569
State 766,379
Source: As per Grant Thornton’s Analysis
In catchment area
Jaipur is the top barley producing district in the catchment area having (180,062 MT) production.
The production share of the catchment in the total state production of Barley is 61%.
Total Production in the catchment Area in MT (2014-15) 464,079
Total Production in Rajasthan in MT (2014-15) 766,379
Percentage share in the State Production 61%
Top Producing Districts in the catchment zone Jaipur, Ganganagar
The top 5 Barley producing districts in the catchment area are given below
Particulars Production (In MT)
Jaipur 180,062
Ganganagar 124,436
Ajmer 43,542
Alwar 30,698
Chittor 24,932
Barley is part of the value chain intervention crop in 1. Bansur, 2.Dooni, 3. Z Distributary and 4.
Mokhampura clusters under RACP project. The APP data for the state and clusters is given below
for an average of last ten years.
The percentage of cropped area in 6% in Bansur, 2.06% in Mokhampura, and 3.12% in Deoli-
dooni. SRR for Barley in these districts stands between 32 to 37% showing that around, 60% of
farmers use home seeds and balance 35-40% farmers purchase seed from the market.
Seed demand for the clusters could be therefore at 275800 kg considering total 2758 ha under
Barley and a seed rate of 100 kg per ha and 35% of this seed may be targeted to be replaced. The net
seed demand for the intervention clusters would therefore be around 96530 kg valuing Rs 19,30,600
at seed price of Rs 20 per kg.
Value Chain Analysis – Barley 16
© Grant Thornton India LLP. All rights reserved.
Table-10.1:Area, Production and marketable surplus
Cluster Area (Ha) Production (MT)
Marketable surplus (MT) @
80%
Value of surplus (Rs lacs)
Bansur 368 1349 1079 151
Dooni 314 471 377 53
Z Distributory 1929 5854 4683 656
Mokhampura 160 453 362 51
Total 9306 17923 14338 2007
The total area under Barley crop in major value chain cluster areas is 9306 Ha and the total
estimated production in 16-17 was 17923 MT. Out of this, marketable surplus is calculated at 80%
of the total production and the value of marketable surplus is calculated to be around 2007 lacs in
the corresponding period.
Resource mapping – Barley clusters
Cluster Major mandi/s
around cluster
Distance from
major cities nearby
Warehouses/
Cold store with
Capacity
No of
FPCs
targeted
Bansur Alwar, Khairtal,
Khedli, Kothputli
55 kms from Alwar,
142 kms from
Gurgaon
Alwar - CWC-
3500 MT, SWC-
30,050 MT,
2
Dooni Tonk, Malpura,
Deoli, Niwai,
Uniyara
38 kms from Tonk,
68 kms from Niwai
NA 2
Z-
Distributary
Sri Ganganagar,
Hanumangarh,
Gajsinghpur, Jaitsar,
Padampur, Sri
Karanpur, Sri
Sadulshahar,
Abohar (Punjab)
48 kms from Abohar,
63 kms from
Hanumangarh, 70
kms from Suratgarh,
33 kms from Sadul
sahar
Sri Ganganagar –
CWC – 35,200 MT,
SWC – 6000 MT,
Rural godown –
23,300 MT
2
Mokhampura Jaipur, Bagru,
Chomu, kisangarh,
Dooni, Chaksu
45 kms from Jaipur,
91 kms from Ajmer
CWC – 23844 MT 1
Value Chain Analysis – Barley 17
© Grant Thornton India LLP. All rights reserved.
1.5. Approach to Value Chain Analysis
In order to evaluate the value chain of Barley, consultations were held with major stakeholders in
the chain including farmers, Consumers, Processors, traders, supporting public and private service
providers and institutions etc. in various parts of the state. Major Barley producing clusters were
considered for survey within Rajasthan.
Table 10: Consultations of stakeholders for Value chain Analysis (Details in Annexure – 1)
Surveyed Markets for the Value Chain Analysis
Within and outside Rajasthan
35 farmers ( Five each from Bansur, Deoli, Manohar Thana, Bari, Baran, Sangod and Mokhampura cluster
Two processors
Seven traders
Seven Government officials from Department of Agriculture and KVKs
Three APMCs
Three NGOs
Value Chain Analysis – Barley 18
© Grant Thornton India LLP. All rights reserved.
Chapter 2- Pre Harvest Management
2.1. Major commercial varieties Grown in Rajasthan
BL-2 and CCN resistant 'Rajkiran' along with recently developed high yielding varieties RD 2035,
RD 2552 have wide adaptability and are suitable for saline conditions, RD 2503 and RD 2668 (Two
rowed type) is used for the purpose of making Malt. Varieties RD 2624 and RD 2660 are specially
developed for adaptability in rainfed conditions. RD 2715 has great potential to produce grain as
well as green fodder. RD 2786 (IR-TS) and RD 2794 (Salinity tolerance) were identified having good
yield potential and rust resistant 12
Table 11: Varieties of Barley in Rajasthan
RD 2552, RD 2035, RD 2592, BH 902 Timely sown, irrigated
RD 2508 Late sown, irrigated
RD 2508, RD 2624, RD 2660, PL 419 Timely sown, Rainfed
RD 2552, NDB 1173 Salt affected soils
RD 2035, RD 2052 Nematode (Molya) affected soils
DWR 28, DWRUB 52, RD 2668 Malt Barley (Timely sown, irrigated)
DWRB 73, DWRUB 64 Malt Barley (Late sown, irrigated)
RD 2035, RD 2552, RD 2715 Dual Purpose Barley (Feed & Forage)
2.1.1. Barley varieties used across India and their targeted yield:
Traditionally grown barley varieties are tall and weak stemmed and generally lodge even under relatively low soil fertility conditions. Therefore, researches on varietal improvement have restructured the plant type to take full advantage of higher level of soil fertility and irrigation. Some of the newly evolved varieties and their characteristics are described below.
Ratna: Ratna variety was developed at IARI, New Delhi and released for rainfed areas of eastern Uttar Pradesh, Bihar and West Bengal. It is highly tolerant to saline, alkaline soil conditions. It yields about 150 q/ha of green fodder after 65 days of sowing and
12
Rajasthan Agricultural Research Institute, Jaipur (http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute-jaipur)
(retrieved on April 9, 2017)
Value Chain Analysis – Barley 19
© Grant Thornton India LLP. All rights reserved.
regeneration crop yielding 20 quintals of seed per hectare. If the green fodder is not taken, it yields about 25-30 quintals grain per hectare. It matures within 125-130 days and gives a fairly good yield even under unfavourable environmental conditions. Plants have good tillering ability. Ear size is 9.0-9.5cm.
Azad (K.125): Azad variety has been developed at C.S.A. University of Agriculture and Technology, Kanpur. It is suitable for cultivation in areas of eastern Uttar Pradesh, Bihar and West Bengal. It is highly responsive to improved management practices. It has a fair degree of resistance to yellow rust disease. It does well under irrigated conditions. It is good for dual purpose like fodder and grain. It yields about 150 quintals of green fodder per hectare after 65 days of sowing and regenerates to produce a yield of 20 quintals per hectare of grain. It matures in 115-120 days. It has yield potential, of 35-38 quintals of grain per hectare under irrigated conditions.
Vijaya: Vijaya variety has been developed at C.S.A University of Agriculture and Technology, Kanpur and released for rainfed areas of western Uttar Pradesh, I Delhi and Madhya Pradesh. It matures in 120-125 days. Plants of this variety are shorter in height as compared to other varieties. It does well in rainfed areas of Haryana and Punjab also. It has yield potential of 30-35 quintals of grains per hectare.
Amber: This variety has also been developed at C.S.A. University of Agriculture and Technology, Kanpur. It matures in 130-133 days. Plants are 100-125cm in height. Ear size is 8.5-9.5 cm. It is suitable for growing in rainfed areas of eastern Uttar Pradesh. It is good for the production of malt for brewing. It has yield potential of 25-30 quintals of grains per hectare.
RS-6: The variety RS-6 was developed in Rajasthan. It is suitable for cultivation under both rainfed as well as irrigated conditions. It has been recommended for central and eastern Rajasthan. It matures in 130-135 days. It has yield potential of 35 to 40 quintals of grain per hectare. It is very good for production of malt for brewing.
Jyoti: Jyoti is a Six-row hulled variety. It has been developed at the C.S.A. University of Agriculture and Technology, Kanpur. It is suitable for growing in irrigated areas of Haryana, Punjab, Uttar Pradesh. Delhi, north-western Rajasthan, Bihar and West Bengal. Plant height is short. It has yield potential of about 35-40 quintals of grains per hectare. It matures in 120-125 days, under irrigated conditions, yielding 20-25 quintals of grains per hectare.
Clipper: Clipper has been introduced from Australia. It is especially suitable for malt production and brewing. It matures in about 135-140 days. It is susceptible to yellow rust. It has yield potential of 28-30 quintals of grains per hectare under good management. However, this variety could not become popular among the farmers.
PL-56: PL-56 is a six-row variety with broad and relatively upright leaves and a colour less leaf sheath. It has compact ears with well spread, barbed awns. It is moderately resistant to yellow rust. It is recommended for cultivation under rainfed conditions of Punjab. It has yield potential of30 quintals of grains per hectare.
Ranjit (DL- 70): Ranjit variety of barley grows 75-85cm tall and is shorter by 15-20 cm than other varieties. It is six-row and heavy tillering variety, recommended for commercial cultivation in Punjab only. It is suitable for growing under irrigated conditions. It has yield potential of 30-35 quintals of grains per hectare. Due to its early maturity, it fits well in multiple crop rotations for late, I sowing after the harvest of crops such as potato, cotton or paddy.
Karan-201, 231 and 264: Varieties Karan 201, 231 and 264 have been evolved under the All India Coordinated Barley Improvement Project. These are high yielding varieties and
Value Chain Analysis – Barley 20
© Grant Thornton India LLP. All rights reserved.
good for chappati making. All of them are huskless varieties. These varieties fit in well in the multiple and relay cropping systems. These can be grown in problem soils too, like dry lands, alkaline and saline soils, etc. They can also be grown on lands lying fallow after a paddy crop has been taken. These are suitable for cultivation in the eastern and Bundelkhand region of Madhya Pradesh, Rajasthan and Gurgaon and Mohindergarh district of Haryana. The average yield of Karan 201, 231 and 264 are 38, 42.5 and 46 quintals per hectare, respectively.
C- l64: Variety C-164 is a tall, six-row variety with compact ears and long awns. Its grain is bold, bright and amber. It is resistant to yellow rust. It has stiff straw and is, therefore, more suitable for cultivation under irrigated conditions. It has yield potential of 30-32 quintals of grain per hectare.
Kailash: Variety Kailash is a six-row hulled variety suitable for growing in rainfed areas of medium to low elevation of Himachal Pradesh hills. It matures in 145-150 days. It is resistant to yellow rust. It has yield potential of about 40 quintals of grain per hectare.
Dolma:The variety Dolma is suitable for growing in rainfed areas of medium to high elevation of Himachal Pradesh and Uttar Pradesh hills. It matures in about 140-150 days. It is fairly resistant to yellow rust. It has yield potential of 35-40 quintals per hectare.
Himani: Himani variety was developed at Simla. It is suitable for growing in the medium to lower hill-valley of Uttar Pradesh and Himachal Pradesh. It matures about one week earlier than Kailash. It has yield potential of 32-36 quintals of grains per hectare.
LSB-2: LSB is a six-row naked type barley variety suitable for growing at higher altitude of Himachal Pradesh and Uttar Pradesh hills. It matures in 145-150 days. It has yield potential of 25-30 quintals of grain per hectare.
RDB-1: RDB-1 has been developed by mutation. It is suitable for growing under irrigated conditions in Rajasthan. It is susceptible to yellow rust and is suitable for rust free areas of Rajasthan. It has yield potential of 30-35 quintals of grain per hectare.
BG-25: This variety has been developed at Haryana Agricultural University, Hissar. It is suitable for normal sowing conditions in Haryana. It is resistant to yellow rust. It matures in about 120-130 days. It has yield potential of about 30 quintals of grain per hectare.
BG-108: This variety has been developed at Haryana Agricultural University, Hissar for commercial cultivation under late sown conditions. It takes about 120-125 days to mature. It is fairly resistant to yellow rust. It has yield potential of 20-25 quintals per hectare under late sown conditions.
Kedar: This high yielding variety of barley has been evolved by Indian Agricultural Research Institute, New Delhi. It is suitable for late sown conditions. Kedar is a dwarf variety with profuse tillering and resistant against yellow rust and insects.
Neelam: This variety yields up to 50 quintals per hectare. Its grains are hulled and amber in colour. This variety has been evolved by Indian Agricultural Research Institute, New Delhi,and is recommended for cultivation in both irrigated and rainfed conditions of Punjab, Haryana, Uttar Pradesh, and Bihar. This variety has higher contents of protein and lysine.
2.1.2. Differentiation of two row and six row varieties of barley:
Most of the rest of the world uses six-row barley only for livestock feed, not for beer. it turns out to
be a naturally-occurring result of a pair of mutations, one dominant and one recessive. Both two-
Value Chain Analysis – Barley 21
© Grant Thornton India LLP. All rights reserved.
row and six-row barley have been around for a long, long time. Breeding efforts of the last half-
century have reduced and perhaps functionally eliminated most of the differences between the two
types of barley. Economies of scale at big breweries make many of their differences moot. There are
still distinctions between kernel size, extract, protein and enzymes. Two-row barley kernels tend to
be symmetrical and of an even size, so they tend to absorb water at about the same rate, and
germinate and dry about the same; they’re also easier to grind in two-roller mills. Six-row barley has
a symmetrical center, but the two lateral rows of kernels are a little shorter, thinner, and
twisted slightly. Maltsters often separate each lot of six-row barley into several kernel size fractions
since they differ in water uptake and germination speed.
Six-Row Pros:
It has more protein, less starch, and a thicker husk than two-row.
Higher protein levels may help speed conversion to fermentable sugars. This is important to
homebrewers using high mash-in temps; more conversion would take place than otherwise.
Six-row has higher enzyme content for converting starch into fermentable sugars.
More enzymes means it can convert adjunct starches (which lack or are deficient in
enzymes) during mashing. Offset this with more (less expensive) adjunct grain use, and you
know why so many large breweries use six-row.
Six-row is less expensive per pound, and allows further cost cutting through the higher use
of inexpensive adjuncts to offset the high protein levels.
Supplementing two-row malt with some six-row malt might increase extraction, conversion
time, and fermentability, particularly if you have a high percentage of adjuncts.
Six-row yields more per acre.
Those thicker husks improve the filter bed for lautering.
Enzyme and protein levels are high enough that a brewer probably doesn’t want to use six-
row barley exclusively in a recipe. (Adjunct grains are cheaper.) Unmalted cereals (corn and
rice) are often mixed in with malt to compensate for the higher protein levels in six-row
barley—up to 40 percent of six-row grist can be adjunct. New malt strains mean adding
adjuncts is no longer necessary, but it’s economical and, in the case of some large breweries’
beers, traditional.
Six-Row Cons:
Six row is more susceptible to the formation of dimethyl sulfide, a process begun through
protein breakdown in malting. Some DMS is acceptable in some beer styles, but too much
may contribute to a cooked or sweet corn flavor.
Higher protein content can result in more break material during wort boiling and cooling,
which can cause protein haze. Pay attention to this extra hot break for coagulation and
removal.
Six-row husks are high in polyphenols (tannins), which can contribute to protein-
polyphenol haze, and can impart an astringent taste.
Higher protein content often indicates less starch for conversion in malting. Six-row
malting barley contains from 12-13.5 percent protein, whereas two-row has 11-13 percent.
Malting doesn’t change the protein levels much.
High protein levels can lengthen steeping time in the malting process, which causes erratic
germination, particularly if low- and high-protein barleys are mixed to meet protein limits
for malt. (And I was worried about controlling what went into my malt extract…)
High proteins can lead to other beer quality issues like color control.
Value Chain Analysis – Barley 22
© Grant Thornton India LLP. All rights reserved.
Syrup adjuncts and six-row: Syrups are prepared by enzymatically hydrolyzing corn starch
into fermentable sugars. It’s added to wort in fermentable form, which can take the wort
over acceptable enzyme and soluble protein levels if you’re using six-row barley cultivars.
Two-Row Pros:
Greater drought tolerance
You can make more beer from two-row than from six-row malt; its lower enzyme content,
lower protein, greater starch content, and thinner husk make it better suited to higher
extract. This is less obvious at the homebrew scale and more a concern for large breweries.
Arguably gives beer a mellower flavor than six-row.
Two-Row Cons:
The lower diastatic (enzymatic) power of two-row becomes an issue when a large
proportion of unmalted adjunct grain is used.
Two-row tends to be more expensive per pound.
Big breweries generally use far more adjunct grain than they strictly need; large amounts of
adjuncts tend to have little body and less maltiness.
2.2. New initiatives and Practices
Rajasthan has seen an increasing use of farm machinery. The use of machines is high in the major
crop producing areas of southern and eastern districts of the state. However, there is a need to push
mechanization around the barley productivity clusters under the project There are opportunities in
production and sales of machinery for land preparation, moisture retention, seed fertilizer drills,
plant protection, harvesting implements and packaging.
2.3. Seasonality Pattern of Barley in Rajasthan visa-vis other parts of the world
Barley is sown in the period of October till December in Rajasthan. The harvesting time for barley
in India is from March to May ending. The growth period is from January to March ending.
Table 12: Seasonal Availability Pattern
Crop Calendar
Jan Feb March April May June July Aug Sept Oct Nov Dec
EU-27
Russia (Spring)
Australia
India Rabi
Rajasthan
Note: Yellow highlight shows sowing and green shows harvesting season
Value Chain Analysis – Barley 23
© Grant Thornton India LLP. All rights reserved.
2.4. Land Preparation13
Land should be prepared to fine tilth stage and weed free by giving 2 – 3 ploughing with cultivator
followed by planking. Field should be well levelled and completely free from weeds. In case of
summer pulse, sowing is generally delayed till harvesting of main crop.
2.5. Sowing/Planting/Cultivation14
A. Seed Sources
Higher grade seed (to produce certified seed, foundation seed is to be obtained) should be obtained
from source approved by the concerned state seed certification agency/ Raj Seeds.
B. Treatment
Seed treatment is advisable in barley cultivation to prevent Smut disease and termites. Treat seed
with Vitavax or Bavistin @ 2 gm per Kg seed or for the covered Smut treatment with 1:1 ratio
mixture of Thiram + Bavistin or Vitavax @ 2.5 gm per Kg seed. To avoid crop loss due to termite,
seed treatment with 150 ml of Chloropyriphos (20 EC) or 250 ml Formathion (25 EC) in 5 litre of
water for 100 Kg seed is recommended.
Table 13: Spacing and Seed Rate
Production Condition Seed rate (kg./Ha.) Time of Sowing Spacing (cm)
Irrigated Timely sown 100 10-25 November 23
Irrigated Late sown 125 26 Nov.-31 Dec. 18
Rainfed Plains 100 25 Oct.-10 Nov. 23
Rainfed Hilly Region 100 20 Oct.-7 Nov. 23
The best method of sowing in barley cultivation is with a seed drill or dropping seeds with a chonga
attached to a desi plough.
Planting time15
Barley is very versatile in its planting time as it has a slightly lower frost tolerance (1°C) than wheat
and can be planted earlier in the season. It is also a better option than wheat for late planting,
especially if feed grain prices are good. Preferred planting times are from late October to early
December but this will vary for each region depending on frosts and seasonal effects. Early planting
will generally produce higher yields, larger grain size and lower protein levels making it more likely
to achieve malt quality. Late plantings will often mature in hot dry weather which can reduce grain
size, yield and malting quality.
Plant populations
While barley can produce a large number of tillers, best yields will be achieved with an established
plant stand of 800,000 to 1.2 million plants/ha (80-120 plants/square metre). While barley can
tolerate quite high plant populations without significant yield reductions, if plant populations fall
below 80 plants per square metre, yield can be reduced. Lower plant populations can also encourage
excess or late tillering resulting in a less even crop and delayed harvest. Late tillers often have smaller
seed which also affects the quality of the crop.
13 Barley Cultivation Information Guide (http://www.agrifarming.in/barley-cultivation/) (retrieved on April 9,2017) 14
Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015 (http://www.nbhcindia.com/docs/research-reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9, 2017) 15 Queensland Government, Barley planting, nutrition and harvesting (https://www.daf.qld.gov.au/plants/field-crops-and-pastures/broadacre-field-crops/barley/planting-nutrition-harvesting) (retrieved on April 9,2017)
Value Chain Analysis – Barley 24
© Grant Thornton India LLP. All rights reserved.
Seed rate
For seed varieties of Feed, Seed rate goes from 15-20 kg per acre. However, for Malt Variety as per
Soufflet seed rate is 50-55 kg per acre.
2.6. Climatic and Soil Requirement16
Barley can be grown as summer crop as well as winter crop. This crop is mainly cultivated as Rabi
season crop in India. This crop requires temperature of 12°C to 16°C at growing stage and about
30°C to 32°C at maturity. This crop is very sensitive to frost at any stage of its growth. This crop
yield is highly impacted by incidence of frost at flowering stage. Barley has very good tolerance to
drought conditions.
Barley crop can be grown on wide range of soil including saline, sodic & lighter soils. However, this
crop thrives best in sandy to moderately heavy soils having neutral to saline reaction and medium
fertility. Acidic soils are not suitable for barley cultivation.
2.7. Nutrients Management17
The following is the fertilizer application in barley cultivation.
Table 14: Nutrient management of Barley
Sowing condition Nitrogen (kg/ha) Phosphorous (kg/ha)
Irrigated Timely sown 60 30
Irrigated Late sown 60 30
Rainfed Hilly Region 40 20
Rainfed Plains 30 20
In case of irrigated crop, 1/2 of the Nitrogen and full dose of Phosphorous should be applied as
basal application and remaining 1/2 of the Nitrogen should be top dressed after 1st irrigation or 1
month after sowing the crop
2.8. Water management18
2 to 3 irrigations are enough in barley cultivation for optimum yield. First irrigation should be given
at crown root initiation, 25 – 30 days after sowing. Second irrigation should be given at panicle
emergence, 60 – 65 days after sowing
2.9. Weed Management19
Broad leaf and Narrow leaf are the main weeds found in barley cultivation. Appropriate weedicides
should be used to control these. Broad leaf => 625 grams of 2, 4-D (Na-salt 80%) and 625 grams of
2,4-D (Easter 38%) should be mixed in 250 litres of water separately and applied per hectare after a
month of sowing. Narrow leaf=>1250 grams of Isoproturan 75% WP should be mixed with in 250
litres of water and applied in 1 ha land after a month of sowing.
Table 15: Weed management
Type of Weeds Weedicides Dose/ ha. Method of Application
Broad Leaf
Chenopodiun album (Bathua)
Convolvulus arvensis (Hirankhuri)
Anagalis arvensis (Krishna Neel)
2,4-D (Na-Salt 80%)
2,4-D (Easter 38%)
625 gm
625 gm
30-35 day after sowing in
250 liters of water
16
Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) retrieved on April 9.2017) 17 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) retrieved on April 9.2017) 18
Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/) (retrieved on April 9.2017) 19 Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-cultivation/)( retrieved on April 9,2017)
Value Chain Analysis – Barley 25
© Grant Thornton India LLP. All rights reserved.
Cronopus didyrmus (Wild Carrot)
Narrow Leaf
Avena fatua (Wild Oat)
Phalaris minor (Kanki)
Isoproturan 75 % WP or
Pendimethillin (Stomp)
30% EC
1250 gm
3.75 litres
30-35 day after sowing in
250 liters of water
Both (Broad & Narrow Leaf) Isoproturan 75% WP
2,4-D (Easter 38%)
Isogard Plus
1.00 Kg
0.75 Kg
1.25 Kg
30-35 day after sowing in
250 liters of water
2.10. Pest & Disease Management20
Covered smut, loose smut, Leaf rust, Stem rust, Stripe rust, Powdery mildew, Net blotch, Spot
blotch, Stripe, Root rot and foot rot, mosaic and sclerotial disease are the diseases and pests found
in barley cultivation. Some of them can be prevented from occurring in seeds by seed treatment.
Disease of Barley
Table 16: Diseases of barley at cultivation stage
S No Name of the disease Causal
organism Symptoms Control measures
1 Covered smut Ustilago
hordei
Smutted heads; grains
replaced by black
agglutinized spore
masses, covered by
persistent white, papery
membrane
Treat seeds with Ceresan or
Agrosan GN before sowing
@ 2-2.5 g/kg of seed; grow
resistant varieties ; rogue out
the smutted plants
2 Loose smut Ustilago
nuda
Smutted heads; grains
replaced by a black
powdery mass of spores;
finally only the naked
rachis remaining behind
Solar-heat or hot-water
treatment of seed; grow
resistant varieties; rogue out
the smutted plants; dry seed
treatment with
Carboxin(0.25)%
3 Leaf rust Puccinia
hordei
Small, round light-
yellowish- brown
pustules on leaves later
the pustules turn black,
covered by the
epidermis
Grow resistant varieties seed
treatment with Benzjmidazole
4 Stem rust (black rust)
Puccinia
graminis
tritici
Reddish-brown to dark-
brown, oblong, pustules
on culms and leaf
sheaths; later, the
pustules turn black
grains become shrivelled
Spray the crop with Zineb @
1.70 kg in 1,025 litres of
water per hectare at
fortnightly intervals ; seed
treatment with Plantvax
(0.25%) for seedling
infection; grow resistant
varieties
5 Stripe rust (yellow
rust)
Puccinia
striiformis
Small, yellow, elliptical
pustules on leaves,
forming stripes which
later turn black;
sometimes the pustules
appear on the leaf
sheaths and glumes
Spray the crop with Zineb
@1.70 kg per hectare at
fortnightly intervals ; seed
treatment with Oxycarboxin
(0.25%) for seedling
infection; grow resistant
varieties
20 Barley Cultivation, Insect Pest and Diseases (http://dwd.dacnet.nic.in/barley_prod/barley_prod_tech.htm) ( retrieved on April 9,2017)
Value Chain Analysis – Barley 26
© Grant Thornton India LLP. All rights reserved.
S No Name of the disease Causal
organism Symptoms Control measures
6 Powdery mildew Erysiphe
graminis
White to dark powdery
masses appear on all
aerial parts of the plant
Dust with finely powdered
sulphur @ 15-20 kg per
hectare ; grow resistant
varieties; soil treatment with
Benomyl ( 600-1000g/100kg)
7 Net blotch Pyrenophora
teres
Scattered, oblong, dark-
brown, reticulate (net-
like) blotches on leaves
unlike those in the ease
of the stripe disease, the
lesions do not extend to
the leaf-sheaths, lesions
also on floral bracts
Treat seeds with Ceresan or
Agrosan GN before sowing
@ 2-2.5 g/kg of seed; grow
resistant varieties ; rogue out
the smutted plants; rogue out
badly affected plants
8 Spot blotch Pyrenophora
sativum
Dark-brown to black
lesions usually occur first
on the coleoptiles and
progress up wards
individual lesions on
leaves round to oblong
with de margins; spots
coalesce to form
blotches, heavily
Infected leaves urn lure
early or dry up
Seed treatment with organo-
mercurials; grow resistant
varieties
9 Stripe Pyrenophora
graminea
Long, dark-brown, linear
stripes on leaves
affected leaves turn
brown, twist and dry up;
no grain formation
Treat seeds with Ceresan or
Agrosan GN before sowing;
grow resistant varieties rogue
out diseased plants
10 Root rot and foot rot Ophiobolus
sativus
Roots and collar show
browning; later,
elongated brown spots
appear on leaves,
glumes and spikelets;
ears are poorly filled;
grains are shrivelled
Treat seed with Ceresan or
Agrosan GN before sowing
grow resistant varieties
practice crop rotation and
sanitation
11 Sclerotial disease Pellicularia
rolfsii
A white weft of mycelium
is formed near the base
of the plant on which
white to reddish-tan
spherical sclerotia
appear
Practice crop rotation and
sterilize the soil
12 Stripe mosaic Virus
Mosaic mottling of
leaves sometimes
associated with flecking;
also infects oats and
wheat
Use virus free seed ; grow
resistant varieties like Rojo’,
‘Hansen ‘CL-320S-4’
Pests of Barley
Table 17: Pests of barley at cultivation stage
S No Name of the Pest Description and damage Control measures
1 Termites Social insects that live Mix thoroughly 5% Aldrin or
Value Chain Analysis – Barley 27
© Grant Thornton India LLP. All rights reserved.
S No Name of the Pest Description and damage Control measures
underground in colonies ; attack
young seedlings as well as grown
up plants; the attacked plants
wither and ultimately die
Chlordane dust with the soil just at
the time of sowing or during
preparation of the land for Bowing
2 Stem-borer
Moths are straw-coloured, lay
eggs in clusters inside the leaf-
sheaths; pinkish-brown caterpillars
bore into stems and kill central
shoots; causing dead-hearts
In the initial stage, pull out and
destroy dead-hearts; dust 5% BHC
or spray 0.05% Endosulfan
3 Weevil,
Adults are earthern-grey weevils;
grubs feed on roots, whereas the
adults out growing- points or
nibble at margins of loaves;
severer at the seedling stage
Plough the fields in summer to
expose and kill the pupae; mix
thoroughly Aldrin or Heptachlor with
the 12 deep layer of soil; for adults,
dust 5% BHC
4 Cutworms
Caterpillars are general feeders;
out seedlings at the soil level;
resowing may be necessary, when
the attack is severe
Dust 10% BHC on the soil around
the plants
5 Armyworm
Caterpillars march from field to
dield and voraciously feed on
foliage; appear after heavy rains
or early floods
Trap caterpillars in grass heaps or
plough up infested fields; dust 10%
BHC or spray 0.05% Endosulfan;
early –stage caterpillars are easy to
control
6 Thrips,
Nymphs and adults lacerate
tender leaves, causing
characteristic whitish streaks;
temperature favourable to rapid
multiplication
Dust 5% BHC or spray 0.02% low
Phosphamidon or 0.03%
Dimethoate or Diazinon
7 Aphids
Nymphs and adults suck sap from
leaves, tender shoots and
immature rain; extremely fast,
forming large colonies
Dust 5% BHC or spray 0.02% low
Phosphamidon or 0.03%
Dimethoate or Diazinon
8 Surface grasshopper
Adults stout, mud-like in
colour; polyphagous, feeding on
foliage and tender shoots
Dust 5-10% BHC
9 Shoot fly
The fly has assumed the status of
a pest recently; maggots attack
seedlings and kill the central
shoots, causing dead-hearts
Apply Phorate (10%) or Disulfoton
(5%) to the soil at the time of
sowing; spray seedlings with 0.03%
Dimethoate, Phosphamidon or
Methyl-demeton
Disease Management
Cercospora Leaf Spot
Affected plants show small round spots, violet red in colour. Spray with Bavistin at the rate of 500
g/ha at 30 and 45 days after sowing for effective control of this disease.
Dry Root Rot and Stem Rot
Value Chain Analysis – Barley 28
© Grant Thornton India LLP. All rights reserved.
It is caused by Macrophomina Phaseolina. Affected plants show rotting of roots and stems of the
plant after a month of sowing. Seed treatment with 0.25% Brassical before sowing may be helpful
in controlling the disease.
Mosaic Mottle
The virus causing this disease is transmitted mechanically or by seeds or by aphids. Affected plants
shows green patches, leaves become deformed and reduced in size and their margin show upward
rolling. Growing of disease free seeds, resistant varieties and repeated spray of insecticide to control
aphids may be helpful in controlling the disease.
2.11. Recommended Good Agriculture Practices
Advanced varieties and their characteristics: The first dwarf mutant variety RDB-1 in the
country was released from Rajasthan Agricultural Research Institute here and provided the genetic
background for the development of dwarf varieties, a very important feature for barley crop. Other
land marks have been the salinity tolerant BL-2 and CCN resistant 'Rajkiran' along with recently
developed high yielding varieties RD 2035, RD 2552 having wide adaptability and suitability for
saline conditions, RD 2503 and RD 2668 (Two rowed type) for malting purpose. Varieties RD 2624
and RD 2660 developed for rainfed conditions are fabulous contributions of this institute. There is
also development of country's first dual purpose barley variety RD 2715 having good potential to
produce grain as well as green fodder. RD 2786 (IR-TS) and RD 2794 (Salinity tolerance) were
identified having good yield potential and rust resistant.
Land Preparation and Treatment: Barley crop can be grown on wide range of soils including
saline, sodic & lighter soils. However, this crop thrives best in sandy to moderately heavy loam soils
having neutral to saline reaction and medium fertility. Acidic soils are not suitable for Barley
cultivation. Land should be prepared to fine stage and weed free by giving 2 to 3 ploughing with
cultivator followed by planking.
Seed Treatment–Seed treatment is advisable in barley cultivation to prevent smut diseases and
termites. Treat seeds with Bavistin @ 2 gm per Kg seed for the treatment of Loose Smut disease.
For covered Smut disease, seeds should be treated with Vitavax @ 2.5 gm per Kg. Seeds should be
treated with 250 ml Formathion(25 EC) in 5 liter of water for 100 Kg seed to prevent termite
infestation.
Seed rate and sowing - The best method of sowing in Barley cultivation is with a seed drill or
dropping seeds with a Chonga attached to a desi plough. Lines owing with seed drill is more
effective. The followings how seed rate and spacing in Barley cultivation.
Integrated Nutrient Management - The following is the recommended fertilizer application in
Barley Cultivation. In case of irrigated crop, half of the nitrogen &full dose of phosphorus should
be applied as Basal application & remaining half of the ‘N’ should be top dressed after first irrigation
or 1month after sowing the crop.
Irrigation: Two to three irrigations are enough in Barley cultivation for optimum yield. First
irrigation should be given at crown root initiation, 25 to 30 days after sowing. Second irrigation
should be given at panicle emergence, 65-75 days after sowing
2.12. Harvesting
Barley crop gets ready for harvest by the end of March to first fortnight of April. Since barley has
shattering character, it should be harvested before over ripening to avoid breaking of spikes due to
dryness. Barley grain absorbs moisture from the atmosphere and should be stored at an appropriate
Value Chain Analysis – Barley 29
© Grant Thornton India LLP. All rights reserved.
dry place to avoid storage pest losses. Machine harvesting is preferred in barley farming. Yield of the
crop depends on the cultivator/variety, farm management practices and weather conditions. An
average yield of 18 to 20 quintals/acre can be expected
2.13. Pre Harvest constraints of Farmers
Availability of variety: At present farmers are growing feed barley which is not suitable for
malt processing.
Traceability: There is no mechanism as such for tracing the produce to their producers.
Malt, being a high value product, needs traceability to ensure the quality.
Value Chain Analysis – Barley 30
© Grant Thornton India LLP. All rights reserved.
Chapter-3: Post-Harvest Management
3.1. Post - Harvest Losses, Harvesting Care and Post – Harvest Equipment
After physiological maturity, 10 or 15 days are required to harvest barley with combine or manually
using sickle in temperate dry lands. If this duration is exceeded, crop will get too dry and then cause
shattering at harvest. Delayed harvest can thus lead to yield losses. Barley physiologically matures
upon kernel moisture content drops to about 40 %. Harlan (1920) found that translocation to the
kernels ceased at a moisture content of 42%. It can be harvested without loss of yield or quality after
reaching about 35% kernel moisture but the grain can not be safely stored until the moisture content
decreased to 14%, (Baldridge et al.).
Depending on social economic situations such as plot size (acreage) various harvesting methods are
used. Generally, for small and marginal farmers, manual harvesting using sickle works best as this
reduces wastage due to shattering, and results in more fodder production. Fodder production is
limited when mechanical harvesters are used.
The means of transportation of barley grains to market or to the granaries depend upon farm size,
physical and geographical conditions, availability of transportation facilities. Small size farmers
prefer to sell their crop in village
Harvested barley should be packed in gunny bags or HDPE bags to avoid pilferage and to protect it
from post-harvest pests.
Packaging materials:
Jute bags: Gunny bags made up of jute are widely used by farmers and traders. As per
NAFED, packing of barley should be made in New B Twill (Jute) gunny bags in 100 kg net.
HDPE/pp bags: These bags are also used for packaging barley.
3.2. Grade Specification & Grading at Producer level
In Barley, the quality parameters such as moisture content, foreign matter, other food-grains,
admixture of other varieties, damaged grains, immature grains, and weevilled and shrivelled grains
are considered while grading. The buyers offer the price on the basis of visual inspection of the lot
or available sample considering above mentioned quality factors
Specifications under AGMARK
Under the Agricultural Produce (Grading and Marking) Act 1937, the national standards for Barley
are notified, considering the quality factors like: a) moisture, b) foreign matter, c) other food-grains,
d) admixture of different varieties, e) damaged grains, f) immature grains, and g) weevilled and
shrivelled grains.
Value Chain Analysis – Barley 31
© Grant Thornton India LLP. All rights reserved.
General characteristics Barley shall:
Be the dried mature grains of Barley vulgar peers raised in the Rabi season;
Be sweet, hard, clean, wholesome, uniform in size, shape, colour and in sound merchantable
condition
Be free from added colouring matter, moulds, weevils, obnoxious substances, discoloration,
poisonous seeds and all other impurities except to the extent indicated in the schedule;
Uric acid and aflatoxin shall not exceed 100 mg and 30 micrograms per kilogram
respectively;
Be free from rodent hair and excreta;
Comply with the restrictions in regard to pesticides/insecticides residue (Rule 65),
poisonous metals (Rule 57), naturally occurring toxic substances (Rule 57-B) and other
provisions prescribed under the Prevention of Food Adulteration Rules, 1955 and as
amended from time to time.
Special characteristics
Table 18: Special characteristics of barley for grading under AGMARK
Grain
Designation
Maximum limits of tolerance (% by weight)
Moisture Foreign matter Other
Edible
Grains
Damaged
Grains
Immature
and
Shrivelled
Grains
Weevilled
Grains
Organic Inorganic
Grade I 12.0 .10 Nil 1.0 1.0 2.0 .5
Grade II 12.0 .25 .10 1.5 2.0 4.0 1.0
Source: DMI
3.3. Major storage Disease and Pest and their Control Measure
In India, post-harvest losses caused by unscientific storage, insects, rodents, microorganisms etc.,
account for about 10 per cent of total food grains. The major economic loss caused by grain
infesting insects is not always the actual material they consume, but also the amount contaminated
by them and their excreta which make food unfit for human consumption. About 500 species of
insects have been associated with stored grain products. Nearly 100 species of insect pests of stored
products cause economic losses.
1. Rice weevil: Sitophilus oryzae (Curculionidae: Coleoptera):
Both the adults and the grubs cause damage. The developing larva lives and feeds inside the grain
causing irregular holes of 1.5 mm diameter on grains of rice, sorghum, wheat, barley, maize before
harvest and in storage. The weevils destroy more than what they eat.
2. Lesser grain borer: Rhyzopertha dominica (Bostrychidae: Coleoptera):
Both the adults and the grubs cause damage. The adults and grubs bore into the grains feed and
reduce them to mere shells with many irregular holes. The adults are powerful fliers and migrate
from one godown to another, causing fresh infestation. Adults produce a considerable amount of
frass, spoiling more than what they eat.
3. Angoumois grain moth: Sitotroga cerealella (Gelechiidae: Lepidoptera):
Value Chain Analysis – Barley 32
© Grant Thornton India LLP. All rights reserved.
Only the larvae cause damage by feeding on the grain kernels before harvest and also in store. The
larva bores into grain and feeds on its contents. Exit holes of 1 mm diameter with or without a trap
door, are seen on the affected cereal grains. As it grows, it extends the hole which partly gets filled
with pellets of excreta. It imparts unhealthy appearance and smell. In a heap of grain, the upper
layers are most severely affected.
Integrated Management of Stored Produce Pests
The control methods of stored produce pests can be categorized into preventive and curative
measures
Preventive measures
Brush the cracks, crevices and corners to remove all debris in the godown.
Clean and maintain the threshing floor/yard free from insect infection and away from the
vicinity of villages.
Clean the machines like harvester and thresher before their use.
Make the trucks, trolleys or bullock carts free from infestation
Clean the godowns/ storage structures before storing the newly harvested crop to eliminate
various lifecycle stages of pest hiding
Provide a metal sheet upto a height of 25 cm at the bottom of the wood in doors to arrest
the entry of rats
Fix up wire meshes to windows, ventilators, gutters, drains etc., to prevent entry of rats,
birds and squirrels
Remove and destroy dirt, rubbish, sweepings and webbings etc from the stores
Close all the rat burrows found in godown with a mixture of broken glass pieces and mud
plastered with mud/ cement.
Plaster the cracks, crevices, and holes found on walls, and floors with mud or cement and
white wash the stores before storing of grains.
Provide dunnage leaving gangway or alleyway of 0.75 to 1 m all around to maintain good
storage condition.
Store the food grains in rat and moisture proof storage structures.
Disinfest the storage structures receptacles by spraying malathion 50 EC @ 3 lit 100 m
before their use.
Curative measures
i) Ecological methods
a. Manipulate the ecological factors like temperature, moisture content and oxygen
through design and construction of storage structures/ godown and storage to
create ecological conditions unfavourable for attack by insects
b. Temperature above 420 C and below 150 C retards reproduction and development
of insect while prolonged temperature above 450 C and below 100 C may kill the
insects.
c. Dry the produce to have moisture content below 10% to prevent the build-up of
pests.
d. Kill the pests bio stages harboured in the storage bags, bins etc., by drying in the
sun light.
e. Store the grains at around 10 % moisture content to escape from the insects attack.
Value Chain Analysis – Barley 33
© Grant Thornton India LLP. All rights reserved.
f. Manipulate and reduce oxygen level by 1% to increase the CO2 level automatically,
which will be lethal to all the stages of insects.
ii) Physical methods
a. Provide a super heating system by infrared heaters in the flour mills and food
processing plants to obtain effective control of pests since mostly the stored
produce insects die at 55 –600 C in 10 – 20 minutes.
b. Modify the storage atmosphere to generate low oxygen (2.4% and to develop high
carbon di oxide (9.0 – 9.5) by adding CO2 to control the insects.
c. Seed purpose: Mix 1 kg of activated kaolin (or) lindane 1.3 D (or) malathion 5 D
for every 100 kg of seed and store/pack in gunny or polythene lined bags.
d. Grain purpose: Mix 1 kg activated kaolin for every 100 kg of grain and store. To
protect the pulse grains, mix activated kaolin at the above dosage or any one of the
edible oils at 1 kg for every 100 kg of grain or mix 1 kg of neem seed kernel for
every 100 kg of cereal / pulse and store.
e. Do not mix synthetic insecticides with grains meant for consumption.
iii) Cultural methods
a. Store the grains in sealed bags to prevent the infestation by insects
iv) Mechanical methods
a. Sieve and remove all broken grains to eliminate the condition which favour storage
pests.
b. Stitch all torn out bags before filling the grains.
v) Chemical methods
a. Treat the walls, dunnage materials and ceilings of empty godown with malathion 50
EC 10 ml/L (or) DDVP 76 WSC 7 ml/L1 at 3 Ll spray solution/10 sq.m.
b. Treat the alleyways and gangways with malathion 50 EC 10 ml/L or DDVP 76
WSC 7 ml/ L (1 L of spray fluid/270 m3 ).
c. Spray malathion 50 EC 10 ml/ L with @ 3 L of spray fluid / 100 m2 over the bags.
d. Do not spray the insecticides directly on food grains. • Use knock down chemicals
like lindane smoke generator or fumigant strips pyrethrum spray to kill the flying
insects and insects on surfaces, cracks and crevices
e. Use seed protectants like pyrethrum dust, carbaryl dust to mix with grains meant
for seed purposes only.
f. Decide the need for shed fumigation based on the intensity of infestation.
g. Check the black polythene sheets or rubberized aluminium covers for holes and get
them ready for fumigation.
h. Use EDB ampoules (available in different sizes 3 ml, 6 ml, 10 ml, 15 ml and 30 ml)
at 3 ml/quintal for wheat and pulses and 5 ml/ quintal for rice and paddy (Do not
recommend EDB for fumigation of flour oil seeds and moist grains)
i. Use EDCT (available in tin containers of 500 ml, 1 liter and 5 litres) at 30 – 40
litres/ 100 cubic meter in large scale storage and 55 ml/quintal in small scale
storage.
Fumigation
Use fumigants like ethylene dibromide (EDB), ethylene dichloride carbon tetra chloride (EDCT),
aluminium phosphide (ALP) to control stored produce pests effectively. Apply aluminum
phosphide (available in 0.6 g and 3 gram tablets) @ 3 tablets (3 gram each) per tonne of food grains
Value Chain Analysis – Barley 34
© Grant Thornton India LLP. All rights reserved.
lot with help of an applicator. Choose the fumigant and work out the requirement based on the
following guidelines.
3 tablets of aluminium phosphide 3 g each per tonne of grain.
21 tablets of aluminium phosphide 3 g each for 28 cubic meters
Period of fumigation is 5 days
Mix clay or red earth with water and make it into a paste form and keep it ready for plastering all-
round the fumigation cover or keep ready sand snakes. Place the required number of aluminium
phosphide tablets in between the bags in different layer. Cover the bags immediately with
fumigation cover. Plaster the edges of cover all round with wet red earth or clay plaster or weigh
down with sand snakes to make leaf proof. Keep the bags for a period of 5-7 days under fumigation
based on fumigant chosen. Remove the mud plaster after specified fumigation periods and lift cover
in the corner to allow the residual gas to escape. Lift the cover after few hours to allow aeration.
Value Chain Analysis – Barley 35
© Grant Thornton India LLP. All rights reserved.
Chapter 4- Cost of production and Net value
accruals to producers
This is a sample case of typical farmer with about 1.6 ha of land holding. About 1.4 ha is deployed
to Barley. The gross yield is 30 quintals per ha. The market rate of the sale is about Rs. 1450 per
quintal or Rs. 43500 per ha. The cost of cultivation is about Rs.29750 per ha. Net realization is
about Rs. 13750 per ha. Out of total cost of cultivation per ha, about Rs. 10000 is cost of land
preparation, seed cost is about Rs. 2000, fertilizer and pesticide cost is about Rs. 7750, weeding
related (labour cost) is about Rs. 4500 and harvesting cost is about Rs. 3000 and threshing cost is
about Rs. 2500. Packing cost is about Rs. 750 per ha. Transportation cost to mandi is about Rs. 250
per ha- all totalling around Rs. 29750 per ha. The fluctuation in prices of Barley is between Rs. 1300-
Rs. 1500 in a year per quintal. The range of yield is 20 quintal to 30 quintal per ha in a year. Cost of
production per quintal is Rs 991 and profit per quintal is Rs 459.
Table 19:Cost of Production
Sr. No. Particular Amount (in Rs. Per ha)
A. Income (30 qtls/ha @ Rs 1450/ qtl 43500
B. Cost of Production
1 Land Preparation Cost 10000
2 Seed Cost 2000
3 Input Cost 7750
4 Weeding Cost 3500
5 Harvesting Cost 3000
6 Thrashing cost 2500
7 Packing and Transportation Cost 1000
8 Total Cost of Production 29750
B Net Profit per ha 13750
C Fodder yield (30 qtl) 9000
D Gross income including fodder 22750
Value Chain Analysis – Barley 36
© Grant Thornton India LLP. All rights reserved.
Chapter 5- Supply Chain of commodity
5.1. Seasonal Availability and Price Pattern
5.1.1. Seasonal Availability
In India, barley is mostly cultivated as a Rabi crop. Sowing normally takes place between October
and December. Harvesting starts from end-March until mid-April in the northern states, whereas in
the central and southern states, harvesting takes place from February to May. The market arrivals
start from March onwards. In Rajasthan and India as whole typically the crop duration of barley is
120-150 days.
Oct Nov Dec Jan Feb March April May June July Aug Sept
Sowing Growth Period Harvesting Peak Period Lean Period
5.1.2. Market Arrivals & Prices in Major Markets of Rajasthan
Barley is sold shortly after threshing in Rajasthan. Major markets where barley arrived in bulk
quantity are Ganganagar, Jaipur, Sikar etc. Arrival of Barley in major markets of Rajasthan is
presented in the table below. Ganganagar, Jaipur, Alwar, Ajmer, Bundi, Tonk and Kota are major
barley producing areas in RACP districts.
Table 20: Arrivals of Barley in various markets of Rajasthan in 2016-17
Sr. No
District name
No of APMC
centers APMC name
Arrival Quantity (in MT)
1 Ganganagar 13
Anoopgarh, Gajsinghpur, Gharsana, Jaitsar, Kesarisinghpur, Lalgarh Jatan, Padampur, Raisingh Nagar, Rawla, Sadulshahar, Sri Karanpur, Sri Vijayanagar, Sriganganagar
47890.10
2 Jaipur 10
Bagru, Chaksu, Chomu, Jaipur (Grain), Jaipur(Grain)(Chandpole), Kishan Renwal(Fulera), Kishan Renwal(Sambhar), Kishangarh Renwal, Kotputli, Kotputli(Pawla)
47580.19
3 Sikar 4 Fatehpur, Neem Ka Thana, Sikar, Sri Madhopur, Surajgarh
26843.40
4 Hanumangarh
11 Bhadara, Goluwala, Hanumangarh, Hanumangarh Town, Hanumangarh(Urlivas), Nohar, Pilli Banga, Rawatsar, Sangriya, Suratgarh
19916.10
5 Alwar 5 Alwar, Khairthal, Khedh(Bodaramev), Khedli(laxmangarh), Kherli
9821.80
6 Jhunjunu 3 Chirwa, Jhunjhunu, Nawalgarh 4348.10
7 Chittorgarh 4 Begu, Fatehnagar, Kapasan, Nimbahera 4221.80
Value Chain Analysis – Barley 37
© Grant Thornton India LLP. All rights reserved.
8 Dausa 8 Bandikui, Bandikui(Geejgarh), Dausa, Lalsot,Lalsot(Mandabari), Mahua Mandabar(Mahua), Mahuwa, Mandawar
3102.30
9 Bikaner 4 Bikaner(Grain), Khajuwala, Lunkaransar, Sridungargarh
2287.72
10 Bhilwara 3 Bhilwara, Bijolia, Mandalgarh 1252.50
11 Udaipur 1 Udaipur 1032.40
12 Ajmer 5 Ajmer (Grain), Beawar, Kekri, Madanganj Kishangarh, Vijay Nagar(Gulabpura)
997.20
13 Bundi 3 Bundi, DEI(Bundi), Keshoraipatan 796.60
14 Tonk 6 Deoli, Malpura, Malpura(Todaraisingh), Niwai, Tonk, Uniyara
785.95
15 Kota 4 Itawa, Kota,Ramaganj Mandi 419.80
16 Churu 4 Churu, Sardar Shahar, Sujangarh(Churu) 367.90
17 Nagaur 2 Deedwana, Kuchaman City 265.60
18 Rajasamand 1 Rajasamand 189.40
19 Jodhpur 2 Jodhpur (Grain)(Mandor), Jodhpur(Grain)(Bhagat Ki Kothi)
104.40
20 Pali 2 Rani, Sumerpur 92.20
21 Bharatpur 6 Bayana, Bharatpur, Bharatpur(Kumer), Deeg, Kama, Nagar
54.00
22 Swai Madhopur
3 Gangapur City, Gangapurcity(Old Lal mandi), Sawai Madhopur
26.04
23 Baran 2 Atru(Kawai Salpura), Baran 15.90
24 Karauli 1 Hindoun 4.90
Grand Total 172,416.30
Source: Agmarknet
Table 21: Modal price trend of Barley in Alwar mandi in last 3 years
Month Price (Rs./Qtl) Month Price (Rs./Qtl)
Sep-15 1,122 jun-16 1,570
Oct-15 1,193 Jul-16 1,553
Nov-15 1,250 Sep-16 1,489
Dec-15 1,342 Oct-16 1,363
Jan-16 1,333 Nov-16 1,443
Feb-16 1,322 Dec-16 1,475
Mar-16 1,315 Jan-17 1,575
Apr-16 1,426 Feb-17 1,450
May-16 1,488
Barley crop is gaining price season over season considering the growth in demand of millet crops
because of their increasing use in malting industry. Price range of Barley in past 3 seasons was from
Rs. 1100 to Rs. 1600.
Value Chain Analysis – Barley 38
© Grant Thornton India LLP. All rights reserved.
Figure 7: Price range of Barley in past 3 seasons
5.2. Existing value chain Channels
There are 3 important production-distribution/marketing channels. In all these channels,
farmers/producers supply commodities to the APMC through village level traders. APMC
commission agents in turn supply them to malt processors and thereafter malt barley is supplied to
domestic brewers and distillers (channel 1) and larger international brewers and distillers (channel 2).
In channel 3 feed and barley is supplied through APMC commission agents to processors and then
onward to domestic and global retailers. The critical constraints in many locations is that the price
yield from barley cultivation is lower than that of wheat in some seasons affecting crop
diversification into this less water intensive crop. There is apparently scope for diversification into
high yielding barley than feed barley in many clusters to cater to the many local processors in the
region.
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,700
Price (Rs./Qtl)
Value Chain Analysis – Barley 39
© Grant Thornton India LLP. All rights reserved.
Figure-8: Existing pre-intervention chain Barley
Value Chain Analysis – Barley 40
© Grant Thornton India LLP. All rights reserved.
Marketing Cost
Marketing costs are the actual expenses incurred in bringing goods and services from the producer
to the consumers. The marketing costs normally include:
Handling charges at local points
Assembling charges
Transport and storage charges
Handling charges by wholesaler and retailer
Market fees, commission charges and taxes on Bajra in Rajasthan are described in table below.
Table 22: List of market fees
S. No Particulars Charges (%)
1 Mandi tax 1.6%
2 Commission charge 2%
3 Tax ---
4
Miscellaneous charges (Handling, weighing,
loading, unloading, cleaning etc)
It varies from market to market.
In Jaipur anaj mandi Rs 10-15 is the loading
and unloading charges per quintal
5 Overall addition to purchase price from farmer 6%
Marketing margin
Total marketing margin is cost involved in moving the barley from producer to consumer and profit
of various market functionaries. Absolute value of the total marketing margin varies from market to
market, channel to channel and time to time. Generally, traders from mandi undertake onward
supply adding 2% margin to bulk handlers and animal feed units.
5.3. Alternative Systems of Marketing
5.3.1. Direct Marketing
This concept involves marketing of produce i.e. Barley by the farmer directly to the
consumers/millers without any middlemen. Direct marketing enables producers and millers and
other bulk buyers to economize on transportation cost and improve price realization. It also
provides incentive to large scale marketing companies i.e. millers and exporters to purchase directly
from producing areas.
Procurement of Barley by government through FCI, NAFED at MSP and by spot trading through
NCDEX is example of direct marketing. NAFED is a government authorized agency. It procures
Barley directly from farmers at MSP for government. In 2012 to 13, NAFED purchased 366895.77
MTs of various food grains like Bajra, Barley, Wheat, Paddy, Rice and Maize at Rs. 504.88 crore in
its outright account. The total Barley procured by NAFED during this period is 2154.57 MTs worth
Rs 240.78 lakhs. There is limited private market that purchases Barley directly from farmers in
Rajasthan. Recently, Soufflet has shown interest in direct procurement of Barley from farmers in
Rajasthan from Hadoti region.
5.3.2. Contract Farming
Value Chain Analysis – Barley 41
© Grant Thornton India LLP. All rights reserved.
Contract farming is yet to develop in Barley, mainly because of the current rules and regulations in
contract farming state in the state. This is despite the fact that many global players in the value chain
including Carlsberg and SAB Miller as well as Soufflet are into processing or sourcing activities in
the state. Many firms like Soufflet are already into “Contract farming” to a limited extent (and have
submitted representation regarding limitations in the policy through GT). They have also been
transferring Good Agricultural Practices (GAP) to farmers. The limitations as suggested by the
industry is mentioned below:
SN Rule No Rule Challenges/ Suggestions
1 5 The agreement shall be written
on stamp paper of the value of
Rs.100.
Its time consuming and costly.
Non practical – since many farmers
don’t plan sowing in advance. And
when they plan, its already 15-30 days
left for sowing. Managing MoU signing
operations for 10-15000 farmers within
this short time is not feasible.
2 9 Separate registration form
shall be filled for each
agreement
Separate registration form at the APMC
can be replaced with a list of farmers,
sample agreement copy and company
confirmation/undertaking
3 15 The contracting price shall be
higher than the minimum
support or the model price,
whichever is higher, for the
contracted agricultural
produce during the previous
harvest season, in the market
committee concerned
MSP is ok however previous years
modal price is not practical.
4 17 If buyer fails or refuses to
purchase the agreed quantity
of the agriculture produce
from the contract farming
producer, he shall pay the
amount of the difference
between the agreed price and
the actual sale price of the
contracted produce in the
market committee concerned
to the producer.
The buyer should be able to refuse, in
case of bad quality.
5 Special
license
Minimum quantity of 20,000
mts restriction for barley.
This is practically too tough, if the
processor considers buying from FCSC.
6 Out of Purchase at MSP mandatory The same is not applied for purchases
Value Chain Analysis – Barley 42
© Grant Thornton India LLP. All rights reserved.
mandi
procurement
from within the Mandi
7 Payment for
purchase out
of mandi
premises
Payment has to be made in
cash the same day for
purchases out of Mandi
premises
This is not practical specially seeing
cash transactions above Rs 20,000 per
day per customer is not allowed.
5.3.3. Private market yard
There are no private market yards in different clusters where barley is significantly produced such as
Bansur, Deoli, Pisangan and Sangod. However two major companies from Rajasthan like Star Agri
Warehousing Ltd. and CGR Collateral Management Ltd. have taken licenses to operate their
warehouses as Private market Yard. CGR is also a signatory of MoU with State Government of
Rajasthan during GRAM, Kota and is keen to work with project farmers for offering their
warehouses as Private market yard near to production centers from where farmers can store and sell
their produce without going to Mandi. They are also offering 75% loan against warehouse receipt of
barley to farmers.
Value Chain Analysis – Barley 43
© Grant Thornton India LLP. All rights reserved.
Chapter 6- Processing Infrastructure
availability and utilization
6.1. Processing
There are a large number of processors in the region including United Spirits and Carlsberg India in
Alwar. Soufflet also has a processing unit in Alwar.
The Value Added Products for Barley include:
1. Barley flour
2. Barley malt
3. Barley flakes
The typical manufacturing process is summarily presented ahead.
Value Chain Analysis – Barley 44
© Grant Thornton India LLP. All rights reserved.
Barley Flour21:
21
Anonymous (https://www.google.co.in/search?q=processing+flow+of+barley+flour&client=firefox-b-
ab&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiexqaC2f3SAhWJrVQKHRafAA0Q_AUICCgB&biw=1525&bih=734#imgrc=mLyT_MtlH2beQM:)(retrieved on April 9,2017)
Barley
Tempering
Decortication
Decorticated Barley
Tempering (10 min)
Popping
Popped Barley
Pulverization and Stirring
Flour
Additional Water 5%
Additional Water 7%
Value Chain Analysis – Barley 45
© Grant Thornton India LLP. All rights reserved.
Barley Malt: The typical production process in the case of Malt is presented below
Barley
Grading and Steeping
Germination
Preliminary Cleaning
Kilning
Barley Malt
Value Chain Analysis – Barley 46
© Grant Thornton India LLP. All rights reserved.
Barley Flakes: The typical production in case of Barley flakes is as follows:
6.2. Stakeholder’s Share in Consumer Rupee
The price spread along with margin at every stage of value chain starting from the farmer till retailer
is presented in the table given below.
Table 23 Price spread table of Barley (Illustrative for sale of barley flour used for preparing mix flour0
Activity Value per Quintal (Rs.) Stakeholder share in
consumer rupee
Consumer Pays 100%
Retailing: Sale by retailer to
consumer
About Rs. 2980 per quintal which makes
a margin of 15% (Includes local logistics
and storage)
14%
Wholesaling: Sale by wholesalers
to retailers
Rs. 2550 per quintal (Includes a margin of
5% and local logistics and handling)
7%
Secondary processing: Sale after
grinding and packaging
Rs 2350 per quintal (Gross value on sale
after transportation, grinding, packaging
and 10% margin)
26%
Barley
Preliminary Cleaning
Conditioning/Tempering
DE hulling and Aspiration
Polishing and Pre-damping
Steam cooking and Flaking
Hot Air Drying
Barley Flakes
Value Chain Analysis – Barley 47
© Grant Thornton India LLP. All rights reserved.
The existence of a long chain of middle men including the APMC and related commission agents,
producers share in consumers’ rupee is adversely affected. This mirrors the need for promotion of
contract farming options eliminating/minimising the role of the APMC. However, the limitations in
contract farming policy & statutes merits correction.
6.3. Price build up & Marketing Efficiency Analysis
The price spread and values accrued to stakeholders across the chain reflects the profit margins of
the accrued to different stakeholders. Much of the value accruals are accrued to processors and
retailers. Producers’ incomes are apparently dependent on yield as well as whether they are
dependent on feed or malt barley.
Generally in case of sale of barley grain, farmers share in consumer rupee is 49%, trader – 4%,
processor-26%, wholesaler – 7% and Retailer 14%.
In case of malt as a product, the farmers share would reduce to around 30% of the consumer price
and the share of the processer increase to around 30% in the consumer price while the margins of
trader and retailer remains almost similar.
6.4. Consumer preference Analysis
Malt barley after being processed into malt is value added into their beer and other alcoholic drinks
and also into health products and infant or child foods like health drinks (bournvita, boost etc.)
Brand equity is important in the market segment. Malt barley is used in Cereals, Baked foods,
Biscuits and chocolate based foods etc.
Feed barley has application in terms of cattle feed and brand equity is not critical factor. Typically,
malt barley products have higher price realisation than feed barley.
Wholesaler: Primary Processing:
Sale after sorting/grading to
processors
Rs. 1576 per quintal (Gross value on sale
with gross profit margin of 6% after
sorting grading )
3%
APMC: Sale upon trading at the
mandi through auction
Rs. 1487 per quintal (1.6% mandi tax, 2%
aadat, loading, unloading)
1%
Production: Cost of production is
Rs. 991 per quintal (without fodder)
Rs. 1450 per quintal (Gross value on
procurement at Rs. 459; net value accrual
to producers after cultivation costs is Rs.
991/quintal
49%
Value Chain Analysis – Barley 48
© Grant Thornton India LLP. All rights reserved.
Chapter 7- Existing Institutional support and
Infrastructure facility
7.1. Support at cultivation stage
A range of support institutions support value chain activities as described below.
7.1.1. Department of Agriculture, Govt. of Rajasthan:
The department has various verticals through which it supports production, productivity and market
linkage in the state. It has a well established structure and network of State/District and panchayat
level officials to provide extension services to farmers. The department issues licenses to various
agri-input marketing companies including seeds, fertilizers and insecticides and ensures quality
assurance to farmers through regular reporting from suppliers and random quality checks of agri
inputs. The licenses are issued first at the State level by registering input/service providers. The
registered companies can only supply inputs to district and regional level distributors who in turn
make availability of the products at the retailors. All handlers of agri inputs and produce have to take
license from competent authority either at district or state level. Similarly, thee department also
issues mandi licenses for traders at different APMCs for trading in specific commodities. The same
are described below.
A. Extension vertical:
Extension support: The extension wing recommends good agricultural practices for various
crops as per various agro-economic zones, Promotes seed replacement through distribution
of Minikits containing improved variety of seeds. It also provides grant support of upto 50
percent of the price of notified varieties of barley of less than 10 years or Rs 1500 per quin
whichever is less. For hybrid varieties subsidy is - 50% of the price of seeds notified for less
than 10 years or Rs 5000 per quin whichever is less. The department also provides upto 50%
subsidy on micro-nutrient (50% of total cost or upto Rs 500/ha) and bio-fertilizer
application (50% of total cost or Rs 300/ha) under various schemes viz. National Agriculture
Development Scheme/ National Composite Safety Mission/ National Food Security
Mission. The application can be submitted to the office of Agriculture Supervisor-Asst.
Agriculture Officer/ Asst. Director (Extn.)/ Dy. Director (Extension) by eligible farmers at
Panchayat/Sub-district and District level respectively. Under the head “Subsidy on Crop
Demonstrations”, subsidy upto Rs 5000/ha is available for barley cultivation through
flagship programs like State Plan/NFSM.
District level farmer help desk: Under this head, farmer help line are established at district
level with nomitated district level officials from the office of Dy. Director, Agriculture
Value Chain Analysis – Barley 49
© Grant Thornton India LLP. All rights reserved.
Extension to support farmers on various farming related problems. Apart from this, a state
level help desk is also maintained whose telephone no is 0141-5102578
Agriculture information dissemination: At the state level, , technical dissemination is
being done through the daily newspapers, agricultural papers, monthly publication of "Kheti
Ri Bataan" bulletin is also being done. Apart from this, information about advanced
agricultural methods of major crops during crop season, publishing posters, agricultural
guides on various topics, and Rabi / Kharif package of practice books at the block level and
farmers, people's representatives and farmers by producing farmer friendly literature. Is
being distributed to the institutions related to. From day-to-day basis to all the radio stations
of the state, from 7.45 to 8.15, share the information related to farming and phone in these
programs is being broadcast on Tuesday, Thursday and Saturday. The program is being
sponsored by the Department of Agriculture on Monday, Tuesday and Wednesday for three
days a week. "Farming" program on Doordarshan- produced by the Agriculture Department,
is broadcast from Doordarshan Kendra, Jaipur on every Thursday from 7.30 am to 8.00 pm.
In this program, information about departmental schemes / programs being executed by the
Agriculture Department, discussions with experts, problem-solving, confusion-solving,
fortnightly work, message, success stories, innovation, short films, eclipse etc. The tax
program is made simple, interesting and farm-making. The technical information on
agriculture and related subjects to the farmers has been done by the Indian government to
provide "Kisan Call Center" in the state through telephone. Farmers can get any kind of
information related to farming by making free calls to phone number 1800 180 1551/1551,
from basic / mobile telephone to 6.00 pm to 10.00 pm.
Water use efficiency promotion: Under the Farm Pond Program, rain water harvesting is
promoted with the provisioning of 50% subsidy or maximum amount of Rs 52,000/- on raw
farm pond and Rs 75,000/- on farm pond with plastic lining whichever is less. This scheme
is available under the Rashtriya Krishi Vikas Yojana.
For Dighi construction (under National Agriculture Development Scheme/RKVY), 50% of
the unit cost or 350 / - per cubic meter filling capacity and 50% of the cost of the unit cost,
on the construction of plastic lining (raw) diggings, by constructing a minimum of 4.00 lakh
liters of Filler capacity and more than 50% of the unit cost. The amount of rupees 100 / -
per cubic meter will be filled up or maximum Rs 2.00 lakh, whichever is less the grant will be
payable.
For Water Houze construction under the national Agriculture Development Scheme,
support is provided for areas where deep water is used for irrigation. For constructing a
minimum of one lakh liters of Fill Capacity water shed Houz for all categories of farmers, 50
percent of the unit cost or Rs. 350 / - per cubic meter fill capacity or maximum Rs. 75000 /
- whichever is less is the subsidy element.
Under the irrigation pipeline head (of National Agricultural Development Plan, National
Food Security Mission, NMOP) water use efficiency is promoted for irrigation water. Under
this scheme, PVC / HDPE of prescribed size for carrying water from source to farm on
irrigation pipeline is supported. On the purchase of pipes, the farmers of all categories are
given 50 percent of the cost or maximum amount Rs. 50 / - per meter on HDPE pipes or
Rs. 35 / - per meter on PVC pipe or Rs. The maximum amount of Rs.15000 / - on the 20 /
- per meter HDPE laminated le-flat tub pipe will be payable, whichever is less proportionate.
Value Chain Analysis – Barley 50
© Grant Thornton India LLP. All rights reserved.
Under the Fountain Irrigation program through National Food Security Mission; Pulses and
Wheat - Under the Fountain Irrigation Program, subsidy is 50% or the amount is Rs. 10000
/ - per ha, whichever is less.
Under the Mobile Raingun support program, for irrigation of grains and pulses crops,
subsidy of 50 percent of the cost under the Mobile Renganization program or Rs.15000 / -
per unit whichever is less, grant is payable. This subsidy is available under the NFSM scheme
Agricultural equipment grant distribution program: Grants upto 40 to 50 per cent are
given as per the category of farmers on the purchase of approved agricultural machinery viz.
Seed cum Fertilizer Drill, Plow, Threser etc.
Gypsum distribution program: 50% Subsidy is given to farmers on districtwise rate of
Gypsum for maximum area of 2 hectare. This support is for soil reclamation of alkali soils.
Plant protection inputs: Segment, viz. Plant Protection Chemicals / Bio Agents / Bio
Pesticides / Pheromone Trap / Liyos Distribution, including weeds in crops; 50% of the
price or Rs. 500 any less per hectare is payable as subsidy.
Plan Protection equipments segment: Human transport * (napsek, foot sprayer, duster
etc.) are given 40-50 percent of the cost or maximum 600-800 / - Per device as subsidy.
Under Power Drivesegment * (Nepasek Power Sprayer) are given 50-60 percent of the price
or maximum 3000-3800 / - Per device. For tractor mounted sprayers, 50% of the price or Rs
10,000 per device is subsidized. These schemes are as per targets allotted for respective
districts.
Assistance for area specific integrated farming systems like livestock based, horticulture
based and tree based farming systems: Assistance is provided for farmers of selected
village/cluster having land from 0.25 to 2 ha area per farmer. It is implemented on cluster
basis with 100 ha of land. Subsidy applicable is: 50% of cost or 52500/-for farm pond, 50%
of cost or 468/-per SQM for green house, 50% of cost or 30/- per SQM for low tunnel,
40% of cost or 800/-per colony for bee keeping, 50% of cost or 15000/-for diesel pump,
50% of cost or 50000/-for vermicompost unit Pucca @ 125/ per cubic ft, 50% of cost or
8000/-for HDPE vermi bed
Organic production: Organic Barley also has a great potential. For support under the head,
Promotion of Organic Farming, subsidies are available for heads like Conversion of land
Cropping systems and organic seeds, traditional organic input production unit, botanical
extracts production unit, use of phosphate rich organic manure, construction of
vermicompost pit, use of liquid bio fertilizer and support for packing labelling and branding
material support are subsidized for consecutive two years at a rate specified in the manual.
Prime-minister Crop insurance scheme: Farmer have to pay 2% of insured amount in
Kharif, 1.5% of insured amount in Rabi and 5% of insured amount in horticulture &
commercial crops, subject to maximum of 7 hectare per farmer. Rest of the premium
amount will be borne by central and state government in equal ratio. Beyond 7 hectare,
farmer has to pay whole premium amount, i.e. without any subsidy.
Soil health card: Under this, component, district level soil and water testing labs support
farmers on soil testing and providing soil health card for integrated nutrient management.
B. Rajasthan State Seed Production and Certification agency helps in ensuring production of
certified seeds for farmers. The department is mandated to; Recognize varieties eligible for Seed
Value Chain Analysis – Barley 51
© Grant Thornton India LLP. All rights reserved.
Certification and annually publish lists indicating the names of such varieties, Maintain a list of
sources of Breeder & Foundation seeds approved by the Central Seed Certification Board,
Outline the procedure for submission of application for growing, harvesting, processing,
labelling and tagging of seeds intended for certification, Undertake inspection of seed fields,
seed processing plants and lots in accordance with the procedures outlined by the Central Seed
Certification Board in accordance with Indian minimum seed certification standard (IMSCS),
Regulate the processing of seeds at seed processing units and Ensure that the seeds certified by
it conforms to the standards prescribed by the Central Seed Certification Board. Thus the
department ensures availability of quality seeds for growers.
C. Rajasthan State Seeds Corporation helps availability of quality seeds at affordable prices
through the cooperative network and private distributorship channel under the trade name “Raj
Seeds”. During Rabi and Kharif seasons Rajseeds are made available at the door steps of the
farmers through Beej raths operating at almost every panchayat samitee of the state. The
department sold around 6520 quintals of barley seeds in rabi 2016-17.
D. Rajasthan Kisan aayog (Rajasthan State farmer Commission): It is mandated to
Investigate and review of agriculture and allied sectors, keeping in mind the economic ecology
and environment for sustainable development of agriculture and To inform the State
Government for taking necessary measures to solve timely problems of agriculture, animal
husbandry and fisheries, so that farmers can be protected against difficult situations, Talk to
different farming organizations / associations to make the government aware of their demands
and suggestions and To bring the difference in demand and supply to the attention of the State
Government, so that its adverse effects are not on the peasantry.
E. State Agricultural Management institute (SIAM), Durgapura Jaipur: The institute is
mandated to organize training programmes on functional areas of Agriculture and its allied
sector namely; Induction courses on fresh recruitees, Refresher courses for in service officials ,
Crop production technologies, Management of Technology and Input, Irrigation Management,
Dry land Farming, Crop Economics, Extension technique, Communication skills, National
Workshop / Seminars etc.
F. Agricultural Conservation Testing Centers (ATCs): The department of Agriculture has ten
ATCs who are mandated to find out the usefulness of the research recommendations received
from the agricultural research centers under the agricultural universities of the state in various
agricultural and regional conditions and local conditions and to amend the tests in the research
recommendations according to local conditions. On the basis of the tests, preparations of
agricultural climatic package of practice and amendment of the advanced agricultural methods
are amended. Apart from this, the agri-certified testing centres also solve the technical problems
in the day-to-day work of the extension workers.
7.1.2. ICAR and allied institutions:
The Indian Council of Agricultural Research (ICAR) is an autonomous organisation under the
Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers
Welfare, Government of India. The Council is the apex body for co-ordinating, guiding and
managing research and education in agriculture including horticulture, fisheries and animal sciences
in the entire country. With 101 ICAR institutes and 71 agricultural universities spread across the
country this is one of the largest national agricultural systems in the world. The ICAR has played a
pioneering role in ushering Green Revolution and subsequent developments in agriculture in India
through its research and technology development that has enabled the country to increase the
Value Chain Analysis – Barley 52
© Grant Thornton India LLP. All rights reserved.
production of food grains by 5 times, horticultural crops by 9.5 times, fish by 12.5 times , milk 7.8
times and eggs 39 times since 1951 to 2014, thus making a visible impact on the national food and
nutritional security. It has played a major role in promoting excellence in higher education in
agriculture. It is engaged in cutting edge areas of science and technology development and its
scientists are internationally acknowledged in their fields.
State Agriculture Universities (SAUs):
The state four major Agriculture Universities namely; 1. Swami Keshwanand Rajasthan Agricultural
University, Bikaner, 2. Maharana Pratap University of Agriculture and Technology, Udaipur, 3. Sri
Karan Narendra Agriculture University, Jobner, 4. Agriculture University, Kota and affiliated
colleges who contribute to research, education, training and knowledge dissemination on agriculture
technology. The Agriculture Universities also provide research and extension support through
attached Krishi Vigyan Kendras and Agriculture Research Stations.
Following are the varieties of Barley developed by various Agriculture Universities in Rajasthan.
Name of university Variety of seeds developed No of seed
varieties
developed
SKRAU Bikaner RD 2552, RD 2503, RD 2508, RD 2035, RD 2052, RD 2592, RD 2624, RD
2660, RD 2668, RD 2715
10
SKNAU, Jobnear
(Through ARS,
Durgapura Jaipur)
First dwarf mutant variety RDB-1 in the country, salinity tolerant BL-2
and CCN resistant 'Rajkiran' along with recently developed high yielding
varieties RD 2035, RD 2552 having wide adaptability and suitability for
saline conditions, RD 2503 and RD 2668 (Two rowed type) for malting
purpose. Varieties RD 2624 and RD 2660 developed for rainfed
conditions are fabulous contributions of this institute. Recently, an
excellent contribution of the institute is the development of country's
first dual purpose barley variety RD 2715 having good potential to
produce grain as well as green fodder. In August, 2012, RD 2786 (IR-TS)
and RD 2794 (Salinity tolerance) were identified having good yield
potential and rust resistant
28
Krishi Vigyan Kendras;
The State has 42 Krishi Vigyan Kendras affiliated through ICAR. The mandate of the KVKs is to: 1.
Organize Frontline Demonstrations (FLDs) to establish production potential of various crops and
enterprises on farmers field (Facilitete technology dissemination from Lab to field) 2. To conduct on
farm testing to identify the location specificity of agricultural techniques under various farming
systems, 3. Organize need based training to farmers on agri and allied activities, 4. Production and
supply of good quality seeds and planting materials and various farming products to the farming
community and 5. Work as resource center of agricultural technology for supporting initiatives of
private, public and voluntary sector for improving agricultural economy of the district. The KVKs
also offer soil testing facilities to farmers.
Agriculture Research Stations: Apart from the above, there are several agriculture research
stations and sub-stations attached to the universities to undertake research/trial and demonstration
of agriculture technologies.
Value Chain Analysis – Barley 53
© Grant Thornton India LLP. All rights reserved.
22Indian Institute of wheat and barley research, Karnal:
The institute has thirty one funded centres, located in different SAUs, support multidisciplinary
research on wheat and barley 1 2 Indian Council of Agricultural Research under the coordinated
project. Besides the funded centres, more than hundred voluntary centres in SAUs are actively
engaged in evaluation of genotypes. In addition, some testing sites are also provided by State
Agriculture Departments and a few NGOs. These locations have been identified in such a way that
distinct agro-climatic zones of the country (six mega zones under wheat cultivation are represented.
The barley component of AICW&BIP functions at seven funded centres with voluntary
participation by some ICAR institutes and SAUs. So far, 92 varieties have been released for
commercial cultivation and 15 genetic stocks registered with the NBPGR. The priority areas of
research include development of barley for malt, feed and dual purpose. Traditionally, tall plant
types were common in barley. The barley network programme successfully developed semi-dwarf,
management responsive, lodging resistant cultivars with erect leaves, compact plant having thick
stem and stiff straw. Varieties like BH 902, DWRUB 52, RD 2668, RD 2592, NDB 1173 and
DWRB 73 are some examples for such plant type in malt and feed barley. Stripe rust and leaf blight
are the major diseases of barley, although yellow and brown rust in NWPZ and brown rust and leaf
spot are of importance in NEPZ. New high yielding varieties have resistance to such diseases.
Resistance to CCN has been incorporated in some new cultivars. Varieties having good malting/
brewing qualities comparable to European malt barley cultivars have been developed. The recently
released varieties DWRUB 52 and DWRB 73 (developed through hybridization of 2 row x 6 row
types) hold promise as industrial barley with better yield, resistance and maturity duration as
compared to earlier releases. Six row malt barley variety DWR UB 64 was the first one released for
malt purpose.
7.1.3. Credit facilities: Agricultural credit facilities in the state has both formal and informal
sources. Under the formal sources, various banks are extending credit facility at subsidized interest
rates under KCC schemes for farmers having land title. The Gram Seva Sahakari Samitis run by
Cooperative Department also extends crop loans to farmers. However, as many farmers live in
hindu-undivided families, i.e. land title is still with father and sons undertake farming in their share
of land as mutually agreed in the village panchayat. In such cases, getting a formal source of crop
loan is difficult. Hence many farmers resort to informal sources of loans from village level money
lenders at exorbitant rates and exploit them later by forcing to supply the produce also through the
money lenders.
7.1.5. Agri input availability: A number of input service providers (in seeds, fertilisers and
pesticides) operate in the important barley producing clusters of Pisangan, Bansur, Deoli and
Sangod. They are registered through the office of Dy. Director, Agriculture Extn. Of respective
districts.
7.2. Support at post-harvest stage
Following are the major support institutions for post-harvest handling of agriculture produce in the
state.
A. Department of Agriculture marketing (DAM): The department offers upto 50% subsidy on
various sorting/grading machines as specified in the circular dated 19/07/2017.
B. Post-harvest storage: Department of Agriculture provides subsidy for metal storage bins to
farmers. Apart from this, following storage infrastructure is available in the state.
22
http://www.icar.org.in/Vision%202050%20IIWBR%20Karnal.pdf
Value Chain Analysis – Barley 54
© Grant Thornton India LLP. All rights reserved.
Rural Godowns: There are 139 rural godowns in Rajasthan which stores mustard, gram,
wheat, Bajra, gaur, soybean, groundnut etc. The list of godowns in Rajasthan that store barley
is attached in Annexure-5
Central Warehousing Corporation23:
The Central Warehousing Corporation (CWC) is the largest public sector warehouse operator
with their godowns established in almost all the states of the country. At present, CWC have
already established and operating more than 450 warehouses with a capacity of 93.25 lakh
tonnes (as on 29/02/2004). These are scientifically constructed warehouses which facilitate the
farmers to store their produce safely and to derive the benefit of pledge finance during the
period of glut situation in the markets. (Annexure - 2 List out CWCs in Rajasthan)
State Warehousing Corporation
State Warehousing Corporations (SWCs) were established in different states under the purview
of concerned state governments and constructed godowns at distant places. The total share
capital of SWCs is contributed equally by CWC and concerned state governments and SWCs
under dual control. The SWCs also provide storage facilities for green gram. (Annexure – 3
Lists of SWCs in Rajasthan).
C. Market information through Agmarknet:
The Directorate of Marketing and Inspection (DMI), an attached Office of the Department of
Agriculture, Cooperation and Farmers Welfare under Ministry of Agriculture & Farmers Welfare,
was set up in the year 1935 to implement the agricultural marketing policies and programmes for the
integrated development of marketing of agricultural and other allied produce in the country with a
view to safeguard the interests of farmers as well as the consumers. It maintains a close liaison
between the Central and the State Governments.
The Directorate is headed by Agriculture Marketing Adviser to Government of India and has its
Head Office at Faridabad (Haryana), Branch Head Office at Nagpur (Maharashtra) and 11 Regional
Offices at Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Chandigarh, Jaipur, Lucknow, Bhopal,
Kochi and Guwahati and the Central Agmark Laboratory at Nagpur24
D. Support on agri produce marketing through APMCs:
The state has 136 Krishi upaz mandi samitis (KUMS) and 310 market sub yards for trade of
agriculture commodities. Among them, grain mandis in Jaipur, Ganganagar, Kota, Bikaner,
Hanumangarh, Alwar and Sikar are major grain mandis in the state as far as Barley is concerned.
These APMCs are intended to be responsible for:
Ensuring transparency in pricing system and transactions taking place in market area;
Providing market-led extension services to farmers;
Ensuring payment for agricultural produce sold by farmers on the same day;
Promoting agricultural processing including activities for value addition in agricultural produce;
Publicizing data on arrivals and rates of agricultural produce brought into the market area for sale; and setup and promote public private partnership in the management of agricultural markets
23
Farmers’ portal, CWC Link (http://farmer.gov.in/CWC_Link.aspx) (retrieved on April 9,2017) 24
Agmarknet (http://agmarknet.gov.in/) (retrieved on April 9,2017)
Value Chain Analysis – Barley 55
© Grant Thornton India LLP. All rights reserved.
E. Support on post-harvest value addition: The Farm Gate Agro processing and Agri-
marketing scheme of Govt. of Rajasthan has provisioning for subsidy upto Rs 20 lakh for a
sorting/grading/ value addition project of Rs 50 lakh. Ministry of Food Processing, Govt. of India
also has a scheme in the name of Kisan Sampada (Backward & forward linkage scheme) through
which there is a provisioning of 35% subsidy for Farmers/Farmer Groups for establishing value
addition facility for agri produce.
Value Chain Analysis – Barley 56
© Grant Thornton India LLP. All rights reserved.
Chapter 8- Gap & Constraint Analysis
8.1. As Perceived by Producers and Other Stakeholders
Producer case illustration
Phool Chand Meena is a farmer in Samlopur (Pratapgarh) with about 1.6 ha of land holding. About
1.4 ha is deployed to Barley. The variety opted is Oswal. The gross yield is 40 quintals per ha. The
market rate of the sale is about Rs. 1200 per quintal or Rs. 48,000 per ha. The cost of cultivation is
about Rs.33500 per ha. Net realization is about Rs. 14250 per ha. Out of total cost of cultivation per
ha, about Rs. 10000 is cost of land preparation, seed cost is about Rs. 4500, fertilizer and pesticide
cost is about Rs. 7750, weeding related (labour cost) is about Rs. 4500 and harvesting cost is about
Rs. 3000 and threshing cost is about Rs. 2500. Packing cost is about Rs. 1000per ha. Transportation
cost to mandi is about Rs. 250 per ha- all totalling around Rs. 33500 per ha. The fluctuation in prices
of Barley is between Rs. 1100- Rs. 1300 in a year per quintal. The range of yield is 20 quintal to 50
quintal per ha in a year.
Value Chain Analysis – Barley 57
© Grant Thornton India LLP. All rights reserved.
Processor case illustration
The Harodi region comprising 4 district had traditionally been a barley producing region. However,
over the years many farmers have shifted to wheat cultivation as apparently given present levels of
barley yield per acre, the farmers earn 300 – 400 rupees come per acre of wheat than from barley.
The relatively lower net surplus from barley cultivation is because farmers largely use seeds to
produce feed stock barley even for supply to distilleries and yield is barely 1.5 – 2 T per acre. There
are basically 3 different varieties of barley that may be cultivated. These include feed, food and malt
varieties respectively. There is need to diversify to higher yield yielding malt varieties. This
diversification into barley and higher yield yielding malt varieties could apparently increase
production from average of barely 1.5 T per acre to even 2.5 T per acre.
Large firms like Soufflet can contribute in this regard. Soufflet is into global sourcing of barley
(threshed and cleansed) from different areas of the world. The firm has a processing plant in Alwar
Modern Industrial Area. It has a large warehouse in the Kota region. The firm sources some 2.2
MMT per annum of Barley from across the world. It sources from India where the harvesting
period is February and March while it also sources from Argentina (harvesting time being January)
and from other countries like France and Kazakhstan where February is sowing time. Soufflet is
sourcing 20, 000 MT barley from India per annum. This is targeted to be increased to at least
100,000 tonnes per annum. Barley requires watering of up to 2-3 times unlike wheat 6 – 7 times
before harvesting hence it is less water intensive. The firm is also encouraging cultivation in
countries like Ethiopia (whose population also consumes barley as food).
Figure 8:Consultation with MNCs and Value Chain Leaders
Value Chain Analysis – Barley 58
© Grant Thornton India LLP. All rights reserved.
8.2. SWOT Analysis of the Value Chain of Barley
Strength Weakness
Demand of malting varieties of barley growing
steadily due to presence of multinational malting
and brewing industries around Rajasthan
Barley has a variety of usage including barley
flour and various snacks used using its flour and
for making porridge.
Barley ranks as the major crop world wide
Barley is largely for animal feed and it is as food
crop growing demand
USA is the leading producing country followed
by Argentina, Brazil, and Ukraine
A.P, Karnataka, Bihar, Maharashtra, and
Rajasthan are important producers
Rajasthan is one of the leading producers of
Barley in India.
Less water intensive crop
It has a high fodder value like wheat
Barley is not a major cereal crop as compared to
wheat
Most of the barley production in Rajasthan is
using local varieties for animal feed and hence
productivity is less.
The local varieties are not suitable for malting
and hence have lesser economic significance.
Farmers do not follow recommended package
and practices
Farmers are not organized for barley production
and marketing
Improper post-harvest management resulting in
high content of damaged/un-matured grains and
presence of foreign materials
No alternate marketing channel developed for
Barley to facilitate crop diversification.
Inadequate links with farmers for direct
procurement.
Inadequate capacity building programs on
Market led extension services.
Cumbersome norms for contract farming
keeping large buyers away from direct reach of
farmers
Opportunities Threat
Option for crop diversification in rain-fed areas.
Growing demand for malt barley and presence
of processing players in the state itself.
Good processing opportunities for Barley-
Barley Feed, Barley Biscuits, Barley Flour.
Development of alternate marketing channel for
barley procurement is possible.
Scope for tie up of FPCs through FCSC with
firms like Soufflet
Scope for facilitation of start-ups from amongst
FPCs or individual entrepreneurs, in secondary
processing of value added products of barley
like flour, snacks, animal feed, roasted barley,
etc.
Most of the crop economic potential lies with
procurement linked to malting/brewing industry
Farmers fear of quality rejection by industry
Natural calamity may impact production and
hence productivity and profitability.
Farmers’ dependence might increase on
external source of seed suppliers in case of malt
barley and hence increase in cost of cultivation
Fluctuation (delay) in sowing due to climate
change
Cloudy weather, rainfall at the time of flowering and seed formation (Adverse weather conditions)
Infestation of insect-pest & other disease
Taxation related policies (for example –
proposed 5% GST on branded goods), etc.
affects the price levels and buying patterns of
consumers.
Adulteration Malpractices by competitors to get
price advantage
Value Chain Analysis – Barley 59
© Grant Thornton India LLP. All rights reserved.
8.3. Key constraints in Barley crop:
The constraints observed under barley are divided under from different categories, viz Production related constraints, Post-Harvest related constraints and Processing and market infrastructure related constraints.
8.3.1. Production related constraints: Barley occupies comparatively less area under cultivation
with respect to Wheat. It is constantly grown in the area and production as well as productivity also
due to irrigation facility. It is generally cultivated as feed Barley in the cluster.
8.3.2. Post-Harvest related constraints:
Barley is mostly cultivated six rows as feed Barley whose seed size is small. .There is lack of Primary
processing facility except sun drying in Barley at farm level.
8.3.3. Processing and market infrastructure related constraints:
Processing of barley involves high end technology and hence is out of reach of farmers/farmer
institutions. However, with the direct involvement of companies like Soufflet, Farmers can sell their
produce directly to Soufflet with a higher margin after primary sorting grading. Currently there is
lack of primary sorting and grading infrastructure at community level forcing farmers to sell semi-
graded produce to traders who later on sell it at a higher margin after doing sorting, grading and
cleaning.
Lack of market intelligence services: Farmers do not receive information on market prices. Some
farmers sell crops through village level traders, because due to which they are not realising fair price.
Lack of primary processing infrastructure:
i. There is a non-availability of facilities for primary processing: cleaning, grading & sorting at
the farm level.
ii. There is no practice and provision of producer level storage.
iii. There is acute lack of awareness among farmers regarding FAQ (Fair Average Quality)
standards.
iv. Farmers do not practice the usage of basic equipment like moisture meter and weighing
machine.
Distant markets: Due to the distance of APMC from farmers field, they resort to sell the produce
to traders at non-competitive prices.
Seasonal price variations: Generally during harvesting period, prices are on lower side and reach
highest after 5-6 months of harvesting. However, farmers do not have any option but sell
immediately at lower prices as they need cash to meet out their expenses. They could realize higher
price if they can hold the stock for 2-3 months.
Malpractices in markets: Many malpractices prevail in the markets of Barley i.e. excess
weighment, delay in payment, high commission charges, delay in weighing and auction, different
kinds of arbitrary deductions for religious and charitable purposes etc.
Infrastructure facilities: Due to inadequate infrastructural facilities available with the producers,
traders, millers and at market level, the marketing efficiency is affected adversely.
Agribusiness policy related constraints:
Value Chain Analysis – Barley 60
© Grant Thornton India LLP. All rights reserved.
Contract farming: Rajasthan has adopted a model APMC Act, 2007. In Rajasthan Contract
farming of desired variety and quantity as per buyer’s/processor’s need, has been allowed.
Buyer/processors may supply inputs and technical know-how and farmers may produce the crop
for sale to buyers at an agreed price. However, this price shall not be lower than minimum support
price and title of land shall remain with farmer. Produce will be purchased at buyer/processor’s
business/factory place. But processors found less interested in registering under contract farming.
Team ABPF discussed contract farming issues with some of the processors and related challenges
are given below:
i. Rule 5 – Each agreement shall be written on stamp paper of the value of Rs.100. This increases
cost of procurement and procurement time.
ii. Rule 9 – Separate registration form shall be filled for each agreement. Large amount of paper
work can be reduced by group registrations or procurement directly from FPCs.
iii. Rule 17-In case the contract farming buyer fails or refuses to purchase the agreed quantity of the
agriculture produce from the contract farming producer, he is to pay the amount of the
difference between the agreed price and the actual sale price of the contracted produce in the
market committee concerned to the producer. Mutual termination of contract should be allowed.
iv. Rule 19 – The contract farming buyer need furnish an undertaking equal to 20% of the value of
the contracted amount. This amount can be reduced and this will motivate big players to
participate in contract farming.
8.4. PIESTEC Framework
Barley can be summarily considered within the adapted PIESTEC framework as follows:
8.4.1. Political circumstance
Due to land ceiling norms, typically farmers in Rajasthan have barely 2-3 acres of holdings each. The
small and marginal farmers can hardly be expected to invest in better farming technologies, nor
aggregate adequate volumes of commodities as to develop alternate marketing channels away from
typical APMC or multiple-trader led channel in vogue. There is, therefore, need for aggregation of
such farmers into FPOs / FPCs. Typically, such FPOs / FPCs may have a combined holding of
1000-1500 acres.
8.4.2. Institutional context
The globally preferred high income yielding variety of barley is malt barley. Given the fluctuations in
prices as well as need for technology transfer for high yielding varieties, there is apparently need for
contact farming agreements with processors.
However, there are some limitations in the Contract Farming Act and mechanism in Rajasthan.
The limitations are discussed in 5.3.2.
These limitations need to be corrected to encourage and up-scale contract farming practices.
8.4.3. Economics
There is sound economics in malt barley production with contract farming agreements. At present,
farmers are growing feed barley which is not suitable for malt processing. There is presently no
mechanism as such for tracing produce to their producers, but for a few exceptions. Malt being a
high value product, needs traceability to ensure quality. In the case of barley presently, the gross
yield per acre is 16 quintals. The market rate of sale is about Rs. 1200 per quintal. This implies a
Value Chain Analysis – Barley 61
© Grant Thornton India LLP. All rights reserved.
gross yield of about Rs. 19,200 per acre per harvest. Assuming the cost of cultivation at Rs. 13,100
per acre, the net yield or income is pegged at Rs. 6,100 per acre. Firms like Soufflet supplies seeds
and transfers GAP which could enable increase in yield to even 25 quintals per acre or increasing
gross yield income to even Rs. 30, 000 per acre. In comparison, in the case of wheat cultivation, the
yield is presently 18 quintals which is sold @ of even Rs. 1400 per quintal yielding a gross income of
Rs. 25,000 per acre. Basically, crop diversification into high yielding malt varieties could apparently
increase production from an average of barely 15-16 quintals per acre to even 25-26 quintals per
acre and hence call for intensifying cultivation of such variety as a less water intensive and higher
farmer income yielding crop. In fact, the Soufflet intervention with about 3,500 farmers in the
region has already demonstrated increase in net value accruals to contacted farmers/producers by
over 15-30%.
8.4.4. Social
Typically, the small and marginal farmers in Rajasthan go in for wheat than barley. Barley
consumption has apparently a range of health benefits by way of regulation of blood sugar and
reducing cholesterol levels in blood. Barley is more tolerant of soil salinity than Wheat, has a short
growing season and is also relatively drought tolerant. Malt barley can be cultivated as a Rabi season
crop with maize as the kharif season crop. The fluctuations in market prices and relatively higher
prices for wheat have discouraged intensification of cultivation of barley. However, there is scope
for this crop which is less water intensive to be propagated.
8.3.5. Technology
Other than seeds, GAP plays an important role in enhancing farm productivity in the farming of
barley. These practices are typically transferred by large processors to farmers across the globe in the
case of barley. Quality high yielding seeds as well as GAP could together enhance productivity and
yield as to increase yield per acre from 1.5 -1.6 Tonnes to even 2.5 – 2.6 Tonnes.
8.3.6. Environment
The scope for promoting barley as an alternative crop to wheat is an environmental friendly option.
This is because the water-use irrigation footprint is far lower. Barley requires 2-3 waterings over
cultivation while wheat requires 6-7 waterings. Sowing normally takes place in North India as a Rabi
crop with sowing between October and December. Harvesting is from March to April.
8.3.7. Competition
Malt barley after being processed into malt is value added into beer and other alcoholic drinks and
also into health products and infant or child foods like health drinks. Malt barley is also used in
cereals, baked foods, biscuits etc. Typically malt barley products have higher price realisation than
feed barley. There are also a range of value added products that can be made from barley. These
include barley flour, barley flakes other than malt barley. In Rajasthan, typically competition to
barley is from wheat in that price yield from traditional barley cultivation is lower than that of wheat
affecting crop diversification into this less water intensive crop.
The large beer producing companies are major buyers of malt barley varieties. These include SAB
miller, Heineken, and Carlsberg. Soufflet produces malt. These players have processing facilities in
Rajasthan. Barley’s advantage is that it is a low input crop and can be grown in marginal lands and
barley can be grown for use as animal feed, human consumption or for malting.
India has comparative advantage in barley production particularly due to global production season
related variation. In India the harvesting period is February- March to even April while in Argentina
Value Chain Analysis – Barley 62
© Grant Thornton India LLP. All rights reserved.
harvesting time is in January. In France and Kazakhstan February is sowing time. That is why
companies like Soufflet are into global sowing of inputs to optimize their own procurement costs
and ensure yearlong capacity utilization. Out of Soufflet’s global procurement of about 2.2 million
tonnes about 100,000 is to be sowed out of India and particularly Rajasthan.
Depending on seasonality, barley is procured from different locations across the world by value
chain leaders. India and Rajasthan in particular, has comparative advantage in barley production
during the Rabi season.
8.5. Impact of GST over barley value chain:
The Goods and Services Tax is one indirect tax for the whole nation. GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer. It will be levied at every stage of the product distribution chain by giving the benefit of Input Tax Credit (ITC) of the tax remitted in the previous stages. Therefore, the final consumer will bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all previous stages. GST will replace all Central level taxes such as excise, service tax, custom duty as well as state level taxes like VAT, CST, entertainment tax among others. Table 24: Tax Structure
Transaction New Regime Old Regime Remarks
Sale within the state CGST+SGST VAT+ Central Excise/Service tax
Revenue will be shared equally between the Centre and the State
Sale to another state IGST Central Sales Tax + Excise/Service Tax
There will only be one type of tax (central) in case of inter-state sales. The Center will then share the IGST revenue based on the destination of goods.
The impact on the Food Processing Businesses:
With the latest information suggesting that the minimum GST rates will be 18% on all
products.
Implementation of the GST is said to increase the prices of agricultural goods. However,
the products will be able to reach the consumer faster due to state-level taxes such as Octroi
and entry taxes which will significantly reduce the time and hassle of transporting goods
across state borders.
GST will also favour the National Agricultural Market on merging all the different taxation
on agricultural goods will improve the marketing and virtual market growth.
Because GST is a consumption tax, it will be levied only when food products are sold by
the manufacturer and not when they are manufactured.
The Confederation of Indian Industries (CII) has also in its representation called for a zero
rate tax on products which have a rate of up to Rs. 10/- and Rs. 20/-. It also demanded that
all packaged material used as inputs by the food processing industry should have a zero-
percent rate.
Impact on Restaurants and Food Joints: Service tax liability with the credit of input VAT on goods consumed will get submerged into GST and irrespective of goods and services, the credit of input will be available for adjustment against the output liability. This will further optimize the working capital of these restaurants and consumers can expect the superior quality of goods and services. Please refer to Annexure 6 for product wise GST rates of Food Products.
Value Chain Analysis – Barley 63
© Grant Thornton India LLP. All rights reserved.
Chapter 9- Proposed Intervention and
Investments
9.1. Intervention areas for Value chain strengthening/restructuring
The intervention plan of Barley may be broadly considered in the context of activities and
stakeholders as follows.
Stakeholder wise roles, responsibilities, pre-intervention constraints and post intervention
actions:
S.No Stake
holder
Roles and
responsibilities
Pre-intervention
constraints
Post intervention
action Action By
1
Farmer
Land
Preparation
Cultivation of
crops
Harvesting of
crops
Sell the raw
produce
Around 65% farmers
use local variety of
seeds from last
season from their
field resulting in low
yield
Farmers do not
follow recommended
PoP
Awareness
campaigns for
motivating farmers
to use
recommended PoP
on soil testing, land
preparation, line
sowing, INM, IPM
and seed rate
Crop
demonstrations for
use of seeds
suitable for malting
RACP in
partnership
with ATC
and local
NGO
High cost of
insecticides
Non availablity of
nutrient
management
solutions at right
time/ High cost of
transportation as
farmer takes in loose
quantity
Facilitating
formation of FPC
Pooled purchase of
agri inputs through
FPC at bulk price
and onward sale to
member farmers at
wholesale price
keeping minimum
operating margins
Tieup of FPC with
ATC for
multiplication of
foundation seed
produced by
research
institutions through
RACP,
ABPF,
NGO for
FPC
formation
and
further
operation.
RACP to
tieup with
ATC for
supporting
technolog
y transfer
of seed
multiplicati
on through
Value Chain Analysis – Barley 64
© Grant Thornton India LLP. All rights reserved.
S.No Stake
holder
Roles and
responsibilities
Pre-intervention
constraints
Post intervention
action Action By
member farmers of
FPC and onward
sale of improved
variety seed at a
lower cost
FPC
members
High moisture
content of harvested
crop
Chances of fungal
infection during sun
drying on open field
Chances of
contamination with
foreign materials viz.
dust, other seeds
Subsidized
distribution of
tarpaulin sheets
Promotion of good
harvesting
practices
RACP to
provision for
the same
and facilitate
distribution
to FPC
members
with support
from local
NGO
High dirt content
/foreign material in
harvested grain
(Usually resulting in
10% lower income
arrival to farmer)
Ensure availability of
community cleaning
& Grading facility to
farmers through
FCSC established
and maintained by
FPC
RACP, SPs
with input
from ABPF
team
Lack of market
information related to
price
Price discovery
through NCDEX,
eNAM.
ABPF, FPC
Farmers resort to
immediate sale due to
immediate
requirement of cash
Pledge financing
through FPC/FCSC,
Spot/future trading
through e-platforms
ABPF, FPC
During bumper
harvest, prices
collapse and hence
storage option could
help and distress sale.
Storage facility for
farmers as part of
FCSC
RACP, SPs
with input
from ABPF
team
2
Processors Process the
raw produce
Value
addition
Packaging of
value added
product
Limited adoption of
direct procurement
and contract farming
Limited processed
product available in
the market which limits
the marketing potential
of the commodity
Many existing
processors and
budding entrepreneurs
are not aware of
schemes of the GoI
Including CLCSS,
cluster Development
scheme or “Sampada”
for technology
upgrading.
Setting up alternate
channel to sell
directly from PC to
processor or large
retail shops.
Large
Processor/
Buyer and
ABPF,
RACP, FPC,
RSAMB
Awareness seminars
for processors
ABPF,
RACP, FPC
Policy conference,
investors meet ABPF
3 NGOs Extension
services to
Lack of skilled
personnel
Training of NGO
field staff on
RACP/
ABPF
Value Chain Analysis – Barley 65
© Grant Thornton India LLP. All rights reserved.
S.No Stake
holder
Roles and
responsibilities
Pre-intervention
constraints
Post intervention
action Action By
farmers
Disseminate
RACP
Schemes to
the farm level
Distribution of
seeds and
farm kits as
per various
schemes
Hand holding
support to the
farmers
regarding
Poor field-farm level
coordination
Outdated extension
activities
Lower level of
interaction and
adoption of
RACP/govt.
schemes
market led
extension services
Business planning
training
Monthly/Fortnightly
review meetings
with RACP
Feedback of
farmers from
service area
Exposure visits of
NGO staff to
successful FPCs
4
RACP Establish the
feasibility of
sustainably
increasing
agricultural
productivity
and farmer
income
Integrate
agriculture
water
management
and
agricultural
technology,
Establish
farmer
organizations
(FPCs) and
market
innovations in
selected
locations
Lack of clarity on
the form of FPO-
Cooperative or FPC
among field staff
Selections of
capable leaders for
the proposed FPO
Low level of
awareness among
the PMU staff and
farmers regarding
the concept of FPC
Poor or no Market
linkages of the
value chain crops in
clusters
Lack of active NGO
staff deployed in the
cluster
Create basic
understanding
among the RACP
PMU staff about
concepts of FPC
Clear
understanding on
fundamental
differences
between FPC &
Cooperative
Create market
linkages by
bringing more big
players and
processors to the
cluster
Conduct training of
the potential
farmer leaders
about FPC and its
functioning
Capacity building
training of the
NGO staff
regarding the
extension services
to be provided to
the farmers
ABPF
RACP
PMU Line
staff
NGO
Following would be the roles and responsibility of various stake holders in the value chain. In the
production stage, RACP will facilitate partnership with nearby ATC for technology demonstrations,
seed propagation, training of farmers on improved PoP and technology transfer for multiplication
of foundation seeds through FPC members. RACP would facilitate financing for FPC formation,
ABPF to facilitate with policy and process guidelines for FPC formation and establishing FCSC,
local NGO to mobilize farmer members and facilitate collection of member equity and help in initial
running of FPC. In terms of intervention on the production front, productivity is low which is also
partly because of inadequate availability of high yielding malt varieties. There is, therefore, scope for
intervention by the way of introduction of new high yielding malt varieties in the region. Line
Value Chain Analysis – Barley 66
© Grant Thornton India LLP. All rights reserved.
departments under RACP and NGO service-provider may support the initiatives in terms of
dissemination of benefit of going in for new high yielding varieties. Apt amendments in the contract
farming Act could further facilitate this initiative. Traditional package of practices results in lower
yield as against potential. There is therefore need to train farmers on the best package of practices.
This could also be undertaken by stakeholders like large processors. In this context, a seed
production programme needs to be launched availing the services of local or nearby ATC. FPC
would take up bulk purchase of agri inputs at distributor price and sell member farmers at wholesale
price.
At the post-harvest stage constraints in terms of high moisture content, non-availability of sufficient
storage facility, high level of dirt and impurities in harvested grain which may be addressed in two
phases. At farm gate, RACP may facilitate demonstration cum subsidized availability of community
defying platforms/ tarpaulin sheets. As a next step, FPC may facilitate custom use of
sorting/grading facility in FCSC to member farmers.
Many farmers resort to immediate sale after harvesting due to requirement of cash. FPC can offer
farmers pledge financing facility through which they can get 70-80% payment immediately and
leverage future market price.
The FPCs formed would need mentoring, hand holding and business planning support. This would
be provided by ABPF with support from local NGO and RACP from time to time. ABPF would
organize various campaigns like buyer seller meets and FPC/FCSC members training to achieve this
objective. ABPF would also provide establishment guidance for FCSC as per guidelines issued by
RACP.
Many procuring agencies would like to purchase directly from FPC if they become confident of
quality and quantity of produce. ABPF would identify such agencies and facilitate an interface with
the FPCs and help establish initial procedures.
There have been limited efforts in capacity building of farmer leaders (entrepreneurs) and BODs at
the field- level. In this regard, it may be appropriate for ABPF to enable formation of FPOs to meet
minimum scale requirements for upgrading as well as developing alternate market channels. Also,
bank linkages under KCC scheme etc. may be explored. The RACP and line departments need also
work in coordination with the NGO/service providers and the KVK etc. on high content of foreign
materials in harvested gram, harvesting of immature grains and inadequate post-harvest
infrastructure facilities for storage. The storage facility may be established as an FCSC with
assistance under the project.
There is also need for awareness seminars and b2b meets amongst processors and producers on the
options for Special Licence and to source directly from producers (effectively aggregated into
FPOs/ FPCs). Scope for re-orientation of Agri- marketing policy with reduced mandi taxes on
direct procurement; and related capacity building interventions for farmers is a necessity that may be
facilitated by the ABPF. The roles and responsibilities of the FPC has been discussed in 9.2.2.
Value Chain Analysis – Barley 67
© Grant Thornton India LLP. All rights reserved.
9.2. Envisaged Post-intervention value chain map of barley
9.2.1. Post Intervention Value Chain: Barley
In the envisaged post-intervention value chain of Barley, FPCs/farmer associations could bypass the
APMC and commission agents and undertake the value chain activities like aggregation and operate
common facilities (FCSCs) undertaking drying, storage, packaging and transportation. Upon these
primary processing and storage activities, the commodity may be supplied to SME as well as large
processers like “Soufflet and other large breweries/malting companies. Best Agricultural Practices,
seeds etc. supplied by processors could enhance the yield and productivity per acre encouraging
crop diversification. Many global players including Soufflet, SAB Miller and Carlsberg as well as
smaller local breweries are in operation in the region.
The FPCs could undertake a host of activities ranging from input facilitation (seeds, pesticides,
fertilisers), custom hiring in addition to providing common facility storage and primary processing
facilities. These could help in increasing net value accruals to farmers by 15-30%.
As a matter of fact, apparently through Soufflet’s intervention of undertaking “contract farming”
(on the basis MOUs) with about 3,500 farmers, the average net value accruals to contracted
farmers/producers has increased by over 15-30%. In addition, individual enterprise start-ups could
be facilitated in secondary and tertiary processing of value-added barley products like oatmeal,
puffed and roasted barley etc.
The intervention plan of Barley may be broadly considered in the context of activities and
stakeholders in three stages- Production stage/ Cultivation by producers/farmers, post-harvest stage
and the processing stage. In the context of shift towards barley production to greater extent, the
production of apt food/malt barley production than feed barley is important. It should be
strengthened by adaption of best package of Agricultural Practices, capacity building of producers
and also to evolve local self governance and market linkage institutions like FPCs. Undertaking
contract farming interventions are some of the interventions required to redress related constraints
at the production stage. At the post-harvest stage, major constraints are high content of immature
grains/dart and foreign materials in harvested barley, (largely) rain-fed irrigation and inadequate
storage facility are present. Well-designed FCSCs could help address these vices at the
farm/producer level. At the processing stage, gaps are most apparent, in terms of awareness
amongst processors in the inadequate producer processor links etc. These may be reduced through
information dissemination and B2B initiatives matched with policy incentives (like mandi tax
exemption) to facilitate the same.
Wastage would reduce by around 2-5% because of intervention from FPC and direct trading with
bulk processors.
Value Chain Analysis – Barley 68
© Grant Thornton India LLP. All rights reserved.
Figure 9: Indicative Post Intervention value chain map of Barley
Value Chain Analysis – Barley 69
Post-harvest losses and measures to be taken:
Table 25: Yield loss and interventions for Value chain of barley
Stage of value chain
Yield loss (in %)
Reason Intervention
Pre-harvest stage during crop maturity
2-3 Bird invasion
Rodents
Use of T Guards
Use of rodent control measures
Post-harvest handling at farm gate
3-5 Lack of mechanized harvesting
Broken, immature, shrivelled grains
Contamination during drying
Lack of appropriate storage structure on farm
Training on good harvesting practices including mechanized harvesting, drying of crop using tarpaulin sheets or clean floor
Loss during local transportation to Mandi and handling
1 Pilferage
Local handling
Sampling
Proper packaging of harvested material
Purchase by Trader/ Processor
2-3 Poor storage structure and inefficient handling of harvested produce
Loss during transportation due to loose packaging and poor handling
Centralized aggregation from farmers at CFC of FPC
Packaging unit under CFC
Processing 3-5 Use low end and obsolete technologies
Mismatch of capacities of various machine lines
Set up primary processing units for FPC
Support and guide agri-entrepreneurs for setting up modern and high end machines
Distribution to wholesalers/retailers
1-2 Poor handling of value added product
Inefficient packaging of product
Improper storage facility
Lower shelf life of product
Support in storage facility through govt. warehouses
Efficient packaging of produce to prevent leakage and improve shelf life
Overall estimated loss
14-18
9.2.2. Interventions through FPC in the barley value chain crop:
Introduction to FPC Model
Aggregation is the proposed solution of the constraints farmers are facing at present. It is proposed
to form Farmers Producers’ Company by bringing farmers together in the form of voluntary groups
of about 15 to 20 active farmers and federating 20 to 25 such groups into a Producer Company.
These Producer Companies will be functioning on behalf of member farmers and will strive to
undertake a range of activities which will result in added value accruals to farmers and value to
farmers produce. To form a producer company, producer groups will be mobilized (in some cases,
this initiative may have already been completed by NGO’s).
It is envisaged that an elected committee of members of Producers Groups will form a management
committee and oversee the performance of an incentivized manager/CEO. The manager will be
trained in technical issues of post-harvest management, marketing and in operating a transparent
accounting system. The ABPF will support the operation of the Producer Company, and accelerate
the cross learning of best practices.
FPC Development Approach
Value Chain Analysis – Barley 70
The FPC development approach may be viewed as depicted below:
Figure 10:FPC Development Approach
Following are the steps to be followed for formation of the FPC:
PRI of the MTG: The MTGs will be made aware on the FPC model through PRI and individual farmers will be motivated to join the FPC as shareholder through respective MTGs.
Initial discussions with MTG leaders: After PRI is done, initial discussion will be done with the MTG leaders for further orientation on FPC concept.
Identification of MTG leaders: MTG leaders who show inclination to the concept will be selected in the executive committee for FPC formation.
Resource mobilization and FPC planning: The executive committee will meet 2-3 times to plan further activities of FPC viz. crops, strategy for business etc.
Election of BoD and Share collection: 10-12 BoD will be identified along with 2-3 expert directors one each from Agri, Horti, AH and WS dept. The BoD will decide on share value and initiate collection of share through MTG leaders.
FPC registration: Following identification of FPC BoD, registration will be done. This may take 1-2 months as DIN no of BoD has to be generated first. Care should be take that all elected BoD should have PAN no so that there is no delay in paper formalities for registrations.
FPC business: Following registration of FPC, ABPF will prepare business plan for the FPC and facilitate market linkage for input and output.
Setup of processing/ financing – ABPF will further facilitate establishment of processing unit setup along with feasibility studies and planning business linkage with market players.
Value Chain Analysis – Barley 71
Policy and Management
A FPC will function within the overall policy and regulatory framework as per the Producer Company Act. The management of a FPC will vest with the elected Board from amongst the members. The provision about constitution of managing committee will be made in the byelaws. The management of FPCs will be by an elected Board of Directors. Therefore, the representatives of farmers will actually oversee and manage the affairs of a FPC.
The selection criteria for membership of FPC may be viewed as follows:
1. A member will express his willingness to become a member of MTG.
2. A member will actively participate in all functions and activities of MTG
3. A member will contribute his equity to the FPC
4. A member will bring all or part of his produce to the FPC for sale.
5. A member will purchase all or part of his farm inputs through the FPC.
6. A member will produce and prepare his produce for marketing as per directions of FPC.
7. A member will contribute his share to the Producer Association as upfront payment for the business development plan of a FPC as needed.
8. A member will contribute his share to the Producer Company towards the reserves of FPC as needed.
Illustrative list of components of a common facility of a Producer Company (Food Grain)
Godown for storage, drying platforms
2-3 MT per hour grain cleaning, grading, and packing machinery with shed
Additional need based Agricultural Equipment
Computer with internet connectivity for market information
Display Board with Accessories
Auction Hall
Input Suppliers Shops
Toilets
Drinking water & Electricity
Note: Though the illustrative infrastructure proposed is shown in the above tables, the actual infrastructure to be developed will be need based and on participative consultation process.
Typically, start-up may be involved in secondary and tertiary processing activities while FPO’s may be involved in post-harvest and primary processing activity. In many cases, start-up may emerge firm within FPO members.
The evaluation of success should be evaluated on the parameters as under:
I. PCs operating without financial support by the end of 36 months.
II. The PC operates with a reserve fund to cover short term cash flow deficit and with potential for reinvestment in various activities
III. The PC has an effective governing structure.
IV. The PC has a transparent accounting system.
Value Chain Analysis – Barley 72
V. The PC can function as a working example for other farmer organizations to observe and learn from.
VI. Contribution towards increasing farmers’/members incomes.
9.3. Conclusion
Barley has been a major crop of economic significance for farmers in semi-arid areas of Rajasthan due to low water requirement, production of grain and fodder both. The productivity in RACP clusters has already been above the state and average. However, some major constraints in production stage are in-consistent weather pattern, high cost of seeds and farmers not following PoP. It is also envisaged that, the crop productivity can be increased from 30 qtl / ha to 40 qtls per ha just by using improved malt variety of seeds thereby directly enhancing the earning of the farmer by 255 due to increase in yield. The crop suffers around 15-18% post-harvest loss due to handling at various stages in the value chain. There is currently scope of further reducing the cost of cultivation through reducing the cost of seeds and improved productivity through good agriculture practices. The post-harvest losses also need to be reduced through proper education of farmers and other handlers in the value chain. Currently, the farmers’ share in the consumer rupee is on lower side and much of the share earned by the traders can be reaped back to farmers by direct procurement through FPC and supplying to large companies like Soufflet. FPC of farmers would be an ideal intervention for evolving the role of farmers from being chain actors to chain partners by doing both backward and forward integration of activities related to barley value chain. At the back end, the FPC would help in reducing cost of cultivation by undertaking bulk purchase of agri input at wholesale price and selling farmers at a price equal to or lower than the retail price. Similarly, in the front end of the value chain, the FPC would undertake direct collection of barley from the farmers and thereby reduce both the wastage and cost of visit to mandi for farmers. The FPC can further undertake primary processing of the grain and supply directly to large processors and other value chain actors.
For this, a strong base has to be facilitated for the FPC by motivating farmers to contribute in terms of equity and business participation with the FPC. The Board and FPC staff has also to be handholded for a period of 2-3 years to train them on all processes of FPC management and business processes.
All stake holders including RACP, NGO, ABPF, Bankers and other support institutions therefore need to work cohesively towards the common goal of facilitating a strong community organization which can run in a sustainable manner after the project period.
Expected outcomes:
• 4% direct benefit on price through FPC and 2% benefit due to high price received directly
• 1% saving on cost of transportation to APMC and associated charges
• Increased competition in input and output market resulting in higher earning potential for
farmer
• Increased bargaining power of farmers
• Sustainable operations through community institution and assets through FPC and FCSC
• More water available for other crop or for increase in area
Value Chain Analysis – Barley 73
References
Young, B. 2001. Barley; The Versatile Crop. Southern Illinois University, College of
Science, Ethnobotanical Leaflets.
(http://archive.gramene.org/species/hordeum/barley_intro.html) (retrieved on April
9,2017)
World atlas, The leading barley producing
countries(http://www.worldatlas.com/articles/the-leading-barley-producing-countries-in-
the-world.html)(retrieved on April 9,2017)
APEDA Agrixchange, International Production (http://agriexchange.apeda.gov.in)
retrieved on April 9,2017)
APEDA AgriXchange , FAO, Major exporters, (http://agriexchange.apeda.gov.in)
retrieved on April 9, 2017)
Anonymous (http://www.barthhaasgroup.com) (retrieved on April 9,2017)
USDA(* Estimates),(Unit –Million Tonnes)
(http://www.karvycommodities.com/Presentations/Commodity%20Module_Barley.pdf)
(retrieved on April 9, 2017)
Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015
(http://www.nbhcindia.com/docs/research-
reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9,
2017)
Dr M. Ketharaj S. Jeyakumar, Barley Production on Rise, 2010
(http://www.efymag.com/admin/issuepdf/Barley_May10.pdf) (retrieved on April 9,2017)
Rajasthan Agricultural Research Institute, Jaipur
(http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute-
jaipur) (retrieved on April 9, 2017)
Barley Cultivation Information Guide (http://www.agrifarming.in/barley-cultivation/)
(retrieved on April 9,2017)
Seasonal Commodity Insight, Commwatch commodity advisory services, March 7,2015
(http://www.nbhcindia.com/docs/research-
reports/Seasonal%20Commodity%20Insight%20-%20Barley.pdf ) (retrieved on April 9,
2017)
Value Chain Analysis – Barley 74
Queensland Government, Barley planting, nutrition and harvesting
(https://www.daf.qld.gov.au/plants/field-crops-and-pastures/broadacre-field-
crops/barley/planting-nutrition-harvesting) (retrieved on April 9,2017)
Barley Cultivation Information Guide, April 8,2017 (http://www.agrifarming.in/barley-
cultivation/) retrieved on April 9.2017)
Rajasthan Agriculture Research Institute
(http://www.sknau.ac.in/en/constituents/institute/rajasthan-agricultural-research-institute-
jaipur) (retrieved on April 9, 2017)
1Farmer Advisory services, Chambal fertilisers and chemical ltd
(https://www.indiamart.com/proddetail/farmer-advisory-services-6952486433.html)
(retrieved on April 9, 2017)
Livelihood Initiation For Empowerment (LIFE), TUESDAY, April 19, 2011,
(http://liferajasthan.blogspot.in/2011/04/know-kissan-call-center-1800-180-1551.html)
(retrieved on April 9,2017)
Farmers’ portal (http://farmer.gov.in) (retrieved on April 9,2017)
Anonymous
(https://www.google.co.in/search?q=processing+flow+of+barley+flour&client=firefox-b-
ab&source=lnms&tbm=isch&sa=X&ved=0ahUKEwiexqaC2f3SAhWJrVQKHRafAA0Q_
AUICCgB&biw=1525&bih=734#imgrc=mLyT_MtlH2beQM:)(retrieved on April 9,2017)
Farmers’ portal, CWC Link (http://farmer.gov.in/CWC_Link.aspx) (retrieved on April
9,2017)
Agmarknet (http://agmarknet.gov.in/) (retrieved on April 9,2017)
APMC,Indian Economic Service, Arthapedia (http://www.arthapedia.in) (Retrieved On
April 9,2017)
Acknowledging inputs from RACP officials, related producers, processors, industry
associations, NGOs, ATMA, Dept of Agriculture
Value Chain Analysis – Barley 75
Annexure 1: Stakeholders consulted over the
study
Producers 1. 5 Farmers in Bansur cluster
2. 5 Farmers in Deoli Cluster
3. 5 Famer in Bari cluster
4. 5 Farmers in Manoharthana cluster
5. 5 Farmers in Baran cluster
6. 5 Farmers in Sangod cluster
7. 5 Farmers in Mokhampura cluster
Processors
1. Soufflet, Mr. Sachin Thorat, Kota, 7023903009
2. Barley agro Foods Pvt. Ltd., Vasu Gupta, Delhi, 9560083234
3. Gupta Flour Andoil Industries, Bhunnesh Jain, Alwar, 9414018596
4. BRG Ceramine, Amit Gupta, Beawar, 9414009194
5. Agro Seeds Corporation, Sono Sharma, Jaipur, 9428498302
6. Akshay Enterprises, G.N Agrawal , Chadple , 9214009700
7. Agrasen Trading Company, Chetan Agrawal, Bikaner, 9414579409
Traders 1. Mahindra Karan , Anaj Mandi , Kota, 9414187882
2. Kamlesah Dhamani, Kota, 9636012539
3. Shyam Sundar, Kota, 9352779769
4. Sheetal (APMC), Kota, 9785169735
5. Kobra Traders, Madhusudan Kabra, Bundi, 9414393494
Government agencies 1. K. C. Meena (DPM), Dep. of Agriculture, Jahlawar, 9571569638
2. Jitendra Jahangir (DCA), Dep. of Agriculture , Jhalawad , 7014812577
3. Nitin Shinde (DC), Dep. of Agriculture, Jhalawad , 9946229354
4. Harimohan Berwa (Secretary), APMC, Patan, 9461788564
5. N.N. Jinadal (President), DIC, Chittorgarh, 9414734834
6. Sitaram Meena (Director), Dep. of Horticulture, Palathya , 9928491095
7. Mahendra singh (PC), APMC , Kota, 7442326726
Others 1. Nural Hasan (CMS), NGO, Palathya, 9667082929
2. Mr. R. K. Sinha (PD), ATMA, Kota, 9414448968
3. Mr. Laxman Yadav (T.L), NGO, Sangod
4. Mr. Sachin Panchal (SMS), NGO, Sangod, 9116889892
Value Chain Analysis – Barley 76
5. Dr. G.L Keshwa (Director ), Agriculture University, Kota, 7442321204
6. Dr. D. K.Singh (PC), KVK, Baran, 9414662038
7. Mr. Madan Lal, IWC, Kota, 9414188722
8. Mr. SohiL Khan (T.L), NGO, Palathya, 9214363655
Value Chain Analysis – Barley 77
Annexure 2: List out Central Warehousing
Corporation (CWCs) in Rajasthan
Warehouse Project Description Manager Phone Capacity
MT
BHIWADI
C/o Jaquar & Company Pvt.
Ltd., SP-496, RIICO Inld Area,
Bhiwadi – 301019
A. C.
Yadav 01493 297825 4356
ALWAR A-315, NSC, Oppt. ED,
Paryware Pvt. Ltd. Co. Alwar
R. N.
Meena 0144 23721 3574
BARAN Spl. No. 01 ,RIICO Indl Area,
Baran Road, Baran
V. K.
Jaiswal 9460079493 5000
BHARATPUR
Plot No. G-162 to 165 & F-166
to 171, Brij Ind. Area, Behind
Nafed Plant, Phase-II, Hathni
Road, Bharatpur
Devendra
Prakash
05644-
228654 9674
BIKANER Behind Sabzi Mandi, Pugal
Road, Unit-I, Bikaner Prit Pal 0151 2212399 25400
BIKANER-II
Opposite Govt. Engineering
College, Karni Indutrial Area,
Ph.II Bikaner-334004
R. D. Punia 0151 211003 5000
SRIGANGANGR-I Near Power House
Sriganganaga-335001 S.S. Brar 0154 2440107 25200
SRIGANGANGR-II Udyog Vihar Plot No. E-194
to202 Sriganganaga-335001
N.K.
Chabra 0154 2494403 10000
KESARISINGHPUR
C/o ARDC Godown,Mizewali
Road,Kesrisinghpur
Distt.Srigangar
Dhanwat
Singh
01501-
233710 10176
HANUMANGARH
TOWN
C/o FCI, Opp. Railway Station,
Hanumangarh Town
K. D.
Dhiman,
FCI
13262
HANUMANGARH-I
Sector - 8, New Mandi,
Hanumangarh Junction,
Hanumangarh
J. R.
Sharma 01552 260602 21200
HANUMANGARH-II
RICCO Phase-II , Opposite
RICCO, Water Works,
Hanumangarh
Bhart
Bhushan 01552 211794 15000
Value Chain Analysis – Barley 78
Warehouse Project Description Manager Phone Capacity
MT
TIBBI
10, GGR, Hanumangarh
Road, Tibbi, Distt.
Hanumangarh
Anupam
Kumar 01539 224111 1000
SITAPURA-I
Plot No.SPL-1296,EPIP
Sitapura, Ind. Area, Jaipur-
302002
S.K.
Sharma
0141 2771710
, 2770227 14870
SITAPURA-II Plot No.SP-1,RIICO Industrial
Area,Sitapura, Jaipur Y.K. Dubey 0141 2770223 11729
KOTPUTLI
Near Cement Factory,Vill.-
Ramsinghpura Gopalpura
Road,Kotputll, Distt. Jaipur.
Desh Raj 01421 215112
97 5000
JHUNJHUNU Plot No. SP-287 RICCO
Industrial Area,
Raghunath
Singh 01592 250138 5000
SURAJGARH Bhuana Road, Surajgarh-
333029
Rampal
Singh
01596
2238349 2868
KOTA I Ind. Area DCM Road, Nr New
Grain Market Kota-324007
S N Meena
0744
2363638
36830
KOTA II
lndraprasth md. Area,
Road,No. 1, Near Daknia
Railway Station Kota-324005
S.S.Meena 0744 2438019 49300
KOTA III Plot No. SP-1, Kuber Ind.
Area, Ranpur, Kota III
S N
Panchal 25000
RAMGANJ MANDI Khairabad Road, Ramganj
Mandil Distt.-Kota OP Mudgil 07459 22264 9893
NAGAUR Nr. All India Radio Basni
Road, Nagaur- 341001
R.S.
Mathur 01582 241002 7401
PARABATSAR
C/o ARDC Godown, Near Old
Rly. Station.Parbatsar, Distt.
Nagaur
Ram
Behari 9460462881 28093
SIKAR Jagmalpura, Via-Katrathal,
Post-Bhadwasi ,Sikar-33200 1
Nand Lal
Verma 01572 272013 5000
SRIMADHOPUR Hanspur Road, Srimadhopur-
332715
Kishore
Prasad 01575 251699 20600
DEOLI
C/o Juptier Metal Pvt. Ltd.,
NH—12, Deoli Distt : Tonk
01434 239249
Kailash
Narayan
01434-
239249 5000
FATEHNAGAR
MOR Mills Product, Plot No.
H-49 Road No.2, RICCO Indl
Area, Fatehnagar-313205
V. P. Singh 02955-
220411 3106
Central Warehouse
Opposite Krishna Dharma
Kanta, Udaipur By Pass.
Beawar, Distt. Ajmer
Raj Raj
Kumar
Sharma
14849
Central Warehouse
Katori Wala Tibara, Near
Water Works, Tizara Road,
Alwar
Rajendra
Prasad 1442731026 8133
Central Warehouse Village MOR, Kushalgarh D.C. singh 2965274517 3400
Value Chain Analysis – Barley 79
Warehouse Project Description Manager Phone Capacity
MT
Distt.Banswara.
Central Warehouse
Plot No.G-162 to 165,F-166 to
171, Behind NAFED Plant,
Phase-II, Brij Industrial Area,
Hahteni Road, Bharatpur-
321301
N. S.
Meena 5644228654 9674
Value Chain Analysis – Barley 80
Annexure 3: List of State Warehousing
Corporation (SWCs) in Rajasthan
Sr.
No
District Name of
Warehouse
Warehousing Capacity Utilization
including
Reservation
Percentage
Utilization
Own
Constt.
Other
than
own
Constt.
Total
1 Ajmer 1. Ajmer 13350 0 13350 13733 103
2. Beawar 6300 0 6300 5086 81
3. Kekri 3500 0 3500 3704 106
4. Kishangarh 5400 0 5400 4141 77
2 Alwar 5. Alwar 22650 0 22650 18967 84
6. Khairthal 7400 0 7400 3265 44
3 Banswara 7. Banswara 12200 0 12200 7608 62
4 Baran 8. Baran 27520 0 27520 15344 56
9. Antah 9200 0 9200 7472 81
10. Atru 5400 0 5400 1767 33
11. Chhabra 11550 0 11550 2079 18
12. Siswali 6750 0 6750 5304 79
5 Barmer 13. Barmer 6840 0 6840 7533 110
14. Balotra 3600 0 3600 2463 68
6 Bharatpur 15. Bharatpur 22000 0 22000 19499 89
16. Bayana 4700 0 4700 3995 85
17. Nadbai 6950 0 6950 4722 68
7 Bhilwara 18. Bhilwara 6750 8950 15700 16366 104
19. Gulabpura 7550 2000 9550 9505 100
20.
Mandalgarh
3600 0 3600 1497 42
8 Bikaner 21. Khajuwala 10800 0 10800 8694 81
22. Kolayat 4050 0 4050 0 0
23. Nokha 2700 8900 11600 12460 107
24.
Loonkarasar
5400 0 5400 1510 28
Value Chain Analysis – Barley 81
9 Bundi 25. Bundi 24620 0 24620 18536 75
26. Kapren 6750 0 6750 6523 97
27.
Keshoraipatan
6000 0 6000 1161 19
10 Chittorgarh 28. Chittorgarh 17250 0 17250 17656 102
29. Nimbahera 13500 0 13500 13095 97
11 Churu 0 0 0 0 0
12 Dausa 30. Dausa 12900 0 12900 2521 20
31. Bandikui 13680 0 13680 6031 44
32. Lalsot 1260 1620 2880 1218 42
Value Chain Analysis – Barley 82
Annexure 4: Price variation of Barley in
Rajasthan
Date Wise Prices for Specified Commodity on January, 2016
Commodity : Barley (Jau), State : Rajasthan
Market Arrival Date Arrival
s
(Tonne
)
Varie
ty
Minimum
Price(Rs./Qu
intal)
Maximum
Price(Rs./Qu
intal)
Modal
Price(Rs./Qu
intal)
Alwar 5/1/2016 23 Other 1275 1350 1325
14/01/2016 47 Other 1300 1375 1340
Bagru 2/1/2016 0.5 Other 1400 1500 1450
3/1/2016 1.5 Other 1400 1500 1450
7/1/2016 0.5 Other 1500 1550 1525
21/01/2016 0.2 Other 1500 1500 1500
Bandikui 4/1/2016 0.1 Other 1580 1580 1580
6/1/2016 0.1 Other 1320 1320 1320
11/1/2016 0.1 Other 1515 1515 1515
13/01/2016 0.2 Other 1400 1400 1400
23/01/2016 0.1 NR NR NR
Baran 5/1/2016 0.5 NR NR NR
Begu 7/1/2016 668 Other 1450 1570 1500
Bharatpur 5/1/2016 0.5 NR NR NR
Bhilwara 9/1/2016 1 Other 1424 1500 1462
Bijay
Nagar
1/1/2016 0.7 Other 1365 1365 1365
12/1/2016 0.5 Other 1382 1382 1382
26/01/2016 0.1 Other 1461 1461 1461
28/01/2016 0.4 Other 1491 1491 1491
Chaksu 2/1/2016 2 Other 1322 1322 1322
4/1/2016 0.6 NR NR NR
6/1/2016 0.8 Other 1415 1415 1415
28/01/2016 0.1 NR NR NR
29/01/2016 0.3 NR NR NR
Chomu 7/1/2016 0.2 Other 1200 1200 1200
20/01/2016 1.2 Other 1400 1400 1400
Dausa 5/1/2016 0.9 Other 1200 1200 1200
9/1/2016 0.2 Other 1200 1200 1200
Deoli 4/1/2016 0.5 Other 1385 1390 1388
Value Chain Analysis – Barley 83
Date Wise Prices for Specified Commodity on January, 2016
Commodity : Barley (Jau), State : Rajasthan
Market Arrival Date Arrival
s
(Tonne
)
Varie
ty
Minimum
Price(Rs./Qu
intal)
Maximum
Price(Rs./Qu
intal)
Modal
Price(Rs./Qu
intal)
7/1/2016 2 Other 1380 1419 1400
13/01/2016 2.2 Other 1300 1392 1346
28/01/2016 0.7 Other 1440 1445 1443
Gharsana 13/01/2016 49.8 Other 3101 3160 3136
Itawa 4/1/2016 0.5 Other 1601 1601 1601
Jaipur
(Grain)
1/1/2016 1 Deshi 1300 1400 1350
19/01/2016 4 NR NR NR
Jaipur(Grai
)(Chandpol
e)
1/1/2016 5 Other 1300 1400 1350
19/01/2016 0.5 Other 1350 1450 1400
Jodhpur
(Grain)(Ma
ndor)
11/1/2016 1 NR NR NR
Kekri 18/01/2016 1.6 Other 1250 1365 1280
Khairthal 7/1/2016 5 NR NR NR
Kishan
Renwal(Sa
mbhar)
10/1/2016 0.7 Other 1300 1300 1300
Kota 2/1/2016 4 NR NR NR
4/1/2016 1.5 Other 1360 1360 1360
8/1/2016 2 Other 1472 1472 1472
11/1/2016 4 Other 1331 1341 1335
13/01/2016 3 Other 1475 1475 1475
21/01/2016 2.5 NR NR NR
22/01/2016 3 Other 1100 1361 1300
23/01/2016 0.5 Other 1300 1300 1300
27/01/2016 2.5 Other 1301 1301 1301
30/01/2016 5 Other 1322 1322 1322
Kotputli 11/1/2016 0.4 NR NR NR
18/01/2016 0.3 NR NR NR
Kuchaman
City
19/01/2016 1 Other 1390 1390 1390
Lalsot 7/1/2016 0.8 Other 1200 1200 1200
26/01/2016 0.4 NR NR NR
Madanganj
Kishangan
j
2/1/2016 0.2 Other 1400 1450 1425
4/1/2016 2 Other 1380 1420 1400
5/1/2016 1.9 Other 1400 1440 1420
6/1/2016 0.1 NR NR NR
13/01/2016 0.8 Other 1400 1480 1440
Mandalgar
h
22/01/2016 50 NR NR NR
25/01/2016 40 NR NR NR
30/01/2016 22 NR NR NR
Value Chain Analysis – Barley 84
Date Wise Prices for Specified Commodity on January, 2016
Commodity : Barley (Jau), State : Rajasthan
Market Arrival Date Arrival
s
(Tonne
)
Varie
ty
Minimum
Price(Rs./Qu
intal)
Maximum
Price(Rs./Qu
intal)
Modal
Price(Rs./Qu
intal)
Nimbahera 1/1/2016 30 Other 1300 1411 1400
2/1/2016 50 Other 1300 1430 1400
4/1/2016 40 Other 1300 1400 1350
5/1/2016 50 Other 1300 1425 1400
6/1/2016 50 Other 1300 1476 1400
7/1/2016 100 NR NR NR
8/1/2016 30 Other 1300 1450 1400
9/1/2016 20 Other 1300 1400 1350
11/1/2016 50 Other 1300 1450 1400
12/1/2016 50 Other 1300 1420 1350
13/01/2016 30 Other 1400 1484 1450
14/01/2016 30 Other 1350 1420 1400
15/01/2016 10 Other 1400 1450 1420
16/01/2016 10 Other 1400 1500 1450
18/01/2016 10 NR NR NR
20/01/2016 20 Other 1400 1500 1450
21/01/2016 20 Other 1471 1514 1500
22/01/2016 20 NR NR NR
23/01/2016 20 NR NR NR
25/01/2016 20 NR NR NR
27/01/2016 50 Other 1450 1547 1500
28/01/2016 30 Other 1536 1545 1540
29/01/2016 30 Other 1200 1524 1450
Raisingh
Nagar
5/1/2016 0.4 Other 1160 1160 1160
14/01/2016 1.5 Other 1225 1225 1225
22/01/2016 0.2 Other 1225 1225 1225
Rajasaman
d
7/1/2016 1.1 Other 1500 1550 1525
8/1/2016 1.8 Other 1500 1550 1525
10/1/2016 2.5 Other 1500 1550 1525
18/01/2016 5.9 Other 1500 1550 1525
20/01/2016 2.9 Other 1500 1550 1525
21/01/2016 1.9 Other 1500 1550 1525
29/01/2016 2.2 Other 1600 1650 1625
31/01/2016 2.4 Other 1600 1650 1625
Ramaganj
Mandi
11/1/2016 0.1 Other 1200 1200 1200
Rani 5/1/2016 8 Other 4900 4920 4906
Rawla 4/1/2016 0.5 Other 1125 1125 1125
Sawai
Madhopur
7/1/2016 0.3 Other 1400 1400 1400
Sri
Madhopur
4/1/2016 0.4 Other 1325 1325 1325
6/1/2016 1 Other 1260 1260 1260
Value Chain Analysis – Barley 85
Date Wise Prices for Specified Commodity on January, 2016
Commodity : Barley (Jau), State : Rajasthan
Market Arrival Date Arrival
s
(Tonne
)
Varie
ty
Minimum
Price(Rs./Qu
intal)
Maximum
Price(Rs./Qu
intal)
Modal
Price(Rs./Qu
intal)
Srigangan
agar
5/1/2016 0.5 Other 1260 1260 1260
6/1/2016 0.5 Other 1269 1269 1269
Tonk 11/1/2016 1.1 Deshi 1250 1342 1315
12/1/2016 1.5 Deshi 1215 1315 1300
23/01/2016 0.9 Deshi 1290 1498 1435
27/01/2016 0.8 Deshi 1290 1430 1400
Udaipur 1/1/2016 26.6 Other 1375 1450 1415
4/1/2016 26.8 Other 1385 1460 1425
5/1/2016 3 Other 1385 1460 1425
7/1/2016 0.4 NR NR NR
8/1/2016 26.6 Other 1385 1425 1400
11/1/2016 42.3 Other 1385 1425 1400
25/01/2016 59.1 Other 1500 1550 1550
Value Chain Analysis – Barley 86
Annexure 5: Rural Godowns in Rajasthan
Sr.
No.
Name & add. of rural godown Capacity in
MT
Ownership Commodity stored
1. M/s Atal W/H, Nagour Road,
tehsil-Nokha, Bikaner.
1000 Private Guar, Gram,
Mustard,
2. M/s Shree Ram
warehousing,vill- Sogawas,
tehsil- Mereta city, Nagour.-
Unit-1
2352 Private Guar, Gram,
Mustard
3. M/s Shree Ram
Warehousing,vill- Sogawas,
tehsil-Mereta city,Nagour.-Unit-
2
4500 Private Guar, Gram,
Mustard
6. M/s Permanand Paretha
warehouse, vill- Harnawada,
the,- Chhipa-barod, Baran.
990 Private Soybean, Spices,
Urad, Moong
7. M/s Pawan warehouse, vill-
Govind Nagar road, tehsil-
Nokha, Bikaner.
990 Private Guar,gram, mustard
8. M/s Agrawal warehouse,vill-
Sogawas, tehsil- Mereta city,
Nagour
2000 Private Guar,gram, mustard
17 M/s Shree Shyam
warehouse,vill-Bikasar, Bikaner
road,tehsil-Nokha, Bikaner.
975 Private Gram,guar,
wheat,mustard
39 M/s S.M Food products( Smt.
Madhu Bafna), plot
no10,RIICO,Ind. Area, Bigod
Mandalgarh, Bhilwara
990 Private Guar, wheat, gram
40 M/s Sohan Food Products( Sri
Saransh Bafna),plot no.9,
RIICO, Ind Area, Bigod, tehsil-
Mandalgarh, Bhilwara.
990 Private Guar, wheat, gram
63 RG of Shri Laloo Ram, vill-
Sudasar, Shri Dunagarh,
Bikaner
100 Private Bajra, Guar, Gram
64 RG of Smt Bhanwari Devi,vill-
Sanwatsar, SriDunagarh,
Bikaner
50 Private Bajra, Guar, Gram
Value Chain Analysis – Barley 87
Sr.
No.
Name & add. of rural godown Capacity in
MT
Ownership Commodity stored
65 RG of Smt. Keva Devi,vill-
Sanwatsar, Sri Dungargarh,
Bikaner
50 Private Bajra, Guar, Gram
66 RG of Shri Jeevan Ram, vill-
Likhamsar- Utrada, Sri
Dungargarh, Bikaner
200 Private Bajra, Guar, Gram
67 M/s Nokha Cold Stores,E-5A,
Industrial Area, Nokha, Bikaner.
3240 Private Bajra, Guar, Gram
84 M/s Sri Ram Warehouse,vill-
Bikasar, Bikaner road, Bikaner
1800 Private Gram, Guar
85 M/s Shri Bala jee
Warehouse,vill- Bikasar, Nokha,
Bikaner
1800 Private Gram, Guar
86 RG of Shri Sita Ram, vill-Bana,
tehsil-Dungargarh, Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
87 RG of Shri Shiv Lal,vill- Bana,
tehsil-Shri Dungargarh, Bikaner
150 Private Gram Guar, Ground
Nut ,etc.
88 RG of Shri Ram Swaroop NH-
89,vill-deshnoke, Bikaner
150 Private Gram Guar, Ground
Nut ,etc.
89 RG of Shri Mangi Lal,vill-
Berasar,tehsil- Dungargarh,
Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
90 RG of Smt Kesar Devi and
Ganesh Ram vill- bana ,tehsil-
Dungargarh, Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
91 RG of Sri Uda Ram,vill-
Barjangsar, tehsil –Dungargarh,
Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
92 RG of Shri Madan lal vill-
Barjangsar, tehsil- Dunagharh,
Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
93 RG of Shri Rupa Ram,vill-
Jakasar, tehsil – Dfungargarh,
Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
94 RG of Shri Kishore Daswani, Kh.
No.251/241, vill-
Punpalsar,tehsil- Dungargarh,
Bikaner
100 Private Gram Guar, Ground
Nut ,etc.
102 RG of Shri Brij Lal and Smt
Dhapu Devi, vill- Dhaneru, tehsil
–Dungarpur, Bikaner
100 Private Gram, Guar,
Ground Nut ,etc.
103 RG of Shri Shankar Lal Bishnoi,
vill- Salundia, tehsil- Nokha,
Bikaner
100 Private Gram, Guar,
Ground Nut
Value Chain Analysis – Barley 88
Sr.
No.
Name & add. of rural godown Capacity in
MT
Ownership Commodity stored
104 RG of Shri Rameshwar Lal and
Ram Swaroop, vill- Sindhu,
tehsil –Nokha, Bikaner
100 Private Gram, Guar,
Ground Nut
105 RG of Shri Hari Ram, Vill.-
Akhisar, Tehsil-Nokha, Bikaner.
100 Private Gram, Guar,
Ground Nut ,etc.
106 RG of Shri Ishar Ram, vill-
Akhisar, tehsil- Nokha, Bikaner
100 Private Gram, Guar,
Ground Nut ,etc.
107 RG of Shri Surja Ram, Vill-
Ankhisar, Tehsil- Nokha,
Bikaner.
100 Private Gram, Guar,
Ground Nut ,etc.
108 RG of Shri Badri Ram, Vill-
Ankhasar, tehsil- Nokha,
Bikaner.
100 Private Gram, Guar,
Ground Nut ,etc.
109 RG of Shri Madan lal, vill-
Ankhisar, tehsil- Nokha, Bikaner
100 Private Gram, Guar,
Ground Nut ,etc.
110 RG of Shri Prhalad, vill-
Ankhisar, tehsil- Nokha, Bikaner
100 Private Gram, Guar,
Ground Nut ,etc.
111 RG of Smt. Shanti Devi, vill-
Ankhisar, tehsil- Nokha, Bikaner
100 Private Gram, Guar,
Ground Nut ,etc.
112 M./s Rekha Goyal and Sarika
Goyal, near Narendra Bhawan,,
Gandhinagar, Bikaner,
5000 Private Gram, Guar,
Ground Nut ,etc.
118 RG of Shri Dayal Ram, vill-
Sanwalias, tehsil- Meretacity,
Nagour.
836 Private Mustard, Guar,
Gram etc.
120 M/s Shri Shyam warehouse, vill-
Bikasar, tehsil- Nokha, Bikaner.
1887 Private Gram, Guar,
Ground Nut ,etc.
122 M/s Hanumant Warehouse,vill-
Sogawas, tehsil- Meretacity,
Nagour
6000 Private Mustard, Guar,
Gram etc.
123 RG of Shri Roopa Ram, vill-
Tinwari, tehsil- Osian, Jodhpur.
100 Private Mustard , Ground
Nut, Gram , Guar .
124 RG of Shri Ghasi Ram, vill-
Balarwa, tehsil- Osianm
Jodhpur.
100 Private Mustard , Ground
Nut, Gram , Guar .
125 RG of Shri Jaswant Singh and
Mrs. Tubi Devi, vill- Tinwari,
tehsil- Osian, Jodhpur.
100 Private Mustard , Ground
Nut, Gram , Guar .
126 RG of Shri Bhanwar Lal ,vill-
Chirwai, post- Gagri, tehsil-
Osian, Jodhpur.
100 Private Mustard , Ground
Nut, Gram , Guar .
127 M/s Manfool ram Bhadoo, vill-
Govindnagar, tehsil- Nokha,
Bikaner
2530 Private Gram, Guar,
Ground Nut ,etc.
128 RG of Shri Bhanwar Lal ,vill- 100 Private Mustard , Ground
Value Chain Analysis – Barley 89
Sr.
No.
Name & add. of rural godown Capacity in
MT
Ownership Commodity stored
Chirwai, post- Gagri, tehsil-
Osian, Jodhpur.
Nut, Gram , Guar .
129 M/s Manfool ram Bhadoo, vill-
Govindnagar, tehsil- Nokha,
Bikaner
2530 Private Gram, Guar,
Ground Nut ,etc.
132 RG of Shri Satyavrat Bansal,vill-
Kherlirail,tehsil- Kathukumar,
Alwar.
4000 Private Mustard, Wheat,
Jwar, Bajara , etc.
134 M/s Prabhu Dayal. Vill- Chidwai,
tehsil- Shergarh, Jodhpur.
100 Private Mustard, Ground
Nut, Gram , Guar .
136 RG of Shri Narayan Lal, vill-
Pithaputa, Reodar, Sirohi
50 Private Bajara, Mustard
137 RG of Shri. Vijay Poonia,
Khasara No. 301 -302 , Village-
Dhamnia , Tehsil- Merta City,
Nagour
475 Private Mustard, Guar,
Gram etc.
138 RG of Shri. Kana Ram
Chowdhary, Village-Mangarasi,
Post- Jana, Tehsil .
Dataramgarh , Sikar
1000 Private Mustard, Gram ,etc.
139 RG. Of Shri Navneet Lal Vyas,
Vill.- Chak 14SKD, Panch Ka
Tala, Nachana, Tehsil-
Pokharan, Jaisalmer.
100 Private Guar,Gram, Isabgol
.
Value Chain Analysis – Barley 90
Annexure-6: Product wise GST rates of Food
Products
GST-28%
1. Molasses
2. Chewing gum/bubble gum and white chocolate
3. Cocoa butter, fat and oil
4. Cocoa powder
5. Cocoa chocolates
6. Malt extract (other than for infant use and mixes and doughs of bakers)
7. Waffles and wafers coated with or containing chocolate
8. Extract, essences and concentrates of coffee
9. Mustard flour and sauces thereof
10. Sugar, lactose and glucose syrups
11. Food flavouring material
12. Churan for pan
13. Custard powder
14. Aerated waters containing added sugar or other sweeting matter
GST-18%
1. Condensed milk
2. Malt, whether or not roasted
3. Refined sugar, sugar cubes
4. Sugar confectionery
5. All preparations of cereals, flour, starch or milk for infant use and sold retail
6. Pasta, spaghetti, macaroni, noodles
7. Corn flakes and other cereal flakes
8. Waffles and wafers (other than chocolate coating)
Value Chain Analysis – Barley 91
9. Pastries and cakes
10. Extracts, essences and concentrates of tea or mate
11. Soups and broths
12. Ice cream and other edible ice
13. Instant food mixes, soft drink concentrates, sharbat, betel, supari, packaged food
14. Water, including natural or artificial mineral waters and aerated waters not sweetened
15. Ethyl alcohol and other spirits
16. Vinegar and substitutes
17. Curry paste, mayonnaise and salad dressing; mixed condiments and mixed
GST – 12 %
1. All meat in unit containers put up in frozen, salted, dried, smoked state
2. All meat and marine products, prepared or preserved.
3. Butter, ghee, butter oil, cheese
4. All goods under Chapter 20 (preparations of vegetables, fruits, nuts or other parts of plants, including pickle, murabba, chutney, jam, jelly)
5. Ketch-up & sauces, Mustard sauces
6. Dry fruits 2
7. Starches
8. Animal fats and oils
9. Fruit and vegetable juices
10. Roasted chicory and coffee substitutes
11. Yeasts and prepared baking powders
12. Namkeens, bhujiya, mixture, chabena
13. Bari made of pulses including mungodi
14. Soya milk drinks
15. Fruit pulp or fruit juice based drinks
16. Tender coconut water (in unit container with brand name)
17. Beverages containing milk
GST – 5 %
1. All fish variants (except seeds of fish, prawn& shrimp) processed, cured, frozen state
2. Ultra-high temperature milk
3. Milk and cream including skimmed milk powder but excluding condensed milk
4. Yoghurt and other fermented milk and cream
5. Chena or paneer in unit container and branded
6. Egg yolk, fresh or dried
7. Natural honey in branded unit container
Value Chain Analysis – Barley 92
8. Vegetables frozen or preserved (but unsuitable in that state for immediate consumption)
9. Edible fruits and nuts; peel of citrus fruit or melons, in frozen or preserved state
10. Coffee, tea, pepper, vanilla, cloves, cardamoms
11. Seeds of anise, coriander, cumin
12. Ginger (other than fresh ginger), saffron, turmeric, other spices
13. Cereal groats, meal and pellets in branded unit container
14. Cereal grains worked upon (hulled, rolled, flaked)
15. Meal, powder, flakes, granules and pellets of potatoes
16. Meal and powder of the dried leguminous vegetables (pulses, sago, tamarind)
17. Wheat gluten
18. Soya beans
19. Ground nuts
20. Copra
21. Linseed, rape seeds, sunflower seeds, other oilseeds like mustard, poppy,
22. Flour and meals of oilseeds
23. Sugar beet and sugar cane (frozen and dried)
24. Vegetable fats and oils (groundnut, olive, palm, sunflower oil etc)
25. Beet sugar, cane sugar, khandsari sugar
26. Cocoa beans, shells and paste
27. Mixes and doughs for preparation of bread, pastry and other baker’s wares
28. Pizza bread
29. Seviyan
30. Rusks, toasted bread
31. Sweetmeats
32. Flours, meals, and pellets of meat, fish meant for animal consumption
33. Cashew nuts and cashew nut in shell
34. Raisin 3
35. Ice and snow
GST – Nil %
1. Meat (Other than in frozen state and put up in container)
2. Bones and horn cores, bone grist, bone meal etc., hoof meal, horn meal, etc
3. Fish, prawn and shrimp seeds
4. All fish, fresh or chilled (but not processed, cured and frozen)
5. Fresh milk, pasteurized milk but not concentrated, sweetened
6. Eggs (in shell)
7. Curd, lassi, buttermilk
8. Chena or paneer (except in unit container with brand name)
Value Chain Analysis – Barley 93
9. Natural honey (no container-no brand)
10. Fresh fruits and vegetables, roots and tubers (except in frozen state or preserved)
11. Dried fruits
12. Leguminous vegetables, shelled or unshelled
13. Dried leguminous vegetables, shelled, whether or not skinned or split (pulses)
14. Coffee beans, unprocessed tea leaves, fresh spices
15. All cereals (no container-no brand)
16. Cereal grains hulled
17. Flour
18. Atta, maida, besan (no container-no brand)
19. Wheat or meslin flour
20. Cereal flour, groats and meals (no container-no brand)
21. Flour of potato, dried leguminous vegetables (no container-no brand)
22. Oilseeds of seed quality
23. Cane jiggery (gur)
24. Palmyra jaggery
25. Puffed, flattened and parched rice
26. Pappad (except when served for consumption)
27. Bread (branded or otherwise) (except when served for consumption and pizza bread)
28. Prasadam
29. Water (other than aerated, sealed etc)
30. Non-alcoholic toddy
31. Tender coconut powder
32. Aquatic, poultry and cattle feed
33. Salt, all types
Grant Thornton India LLP is registered with limited liability with identity number AAA-7677 and its registered office at L-41 Connaught Circus, New Delhi, 110001
© 2016 Grant Thornton India LLP. All rights reserved. References to Grant Thornton are to Grant Thornton International Ltd (Grant Thornton International) or its member firms. Grant Thornton International and the member firms are not a worldwide partnership. Services are delivered independently by the member firms.