MSc

The study entitled Sustainability assessment of banana value chains of
Palakkad district, Kerala was undertaken during 2021-2022. The study was based on
the objectives viz, mapping of banana value chains depicting the value chain actors,
functions, and dimensions; sustainability assessment and identification of constraints
in banana value chain and formulation of sustainable framework for the banana value
chain.
The study was conducted in Agali, Kumaramputhur, and Karimpuzha
panchayaths of Palakkad district, with a sample size of 170 value chain actors. The
sample comprised of 19 input dealers, 105 banana farmers, 19 commission agents, 19
wholesalers, 17 value addition dealers, 19 retailers and 105 consumers. The major role
of the above mentioned actors observed were supply of inputs, internal handling and
management of resources, physical handling of the product and arranging for its sale,
providing system for procurement, storage and distribution to the retailers and export
agency, minimizing perishability risk and enhancing shelf life, grading, sorting,
packaging of banana and its value added product for export purpose, acting as basic
unit of demand of the commodity.
More than ten value chains were identified during the study, and seven major
value chains out of ten were selected for mapping viz, raw and ripe banana value chain,
auction system value chain, chips export value chain, chips bakery value chain, banana
product mix value chain, banana export value chain and banana powder value chain. It
was realized that the chains were widely disbursed over the state and country and some
ends abroad. During the investigation information flow, money flow, and product flow
were observed and analysed. The former was depicted by social network analysis, and
the latter is by causal circular loop method. The major information shared between
actors observed were on marketing, consumer demand, risk, and opportunities existing
in the chain, and it has resulted in the formation of virtual clusters within the chains.
The transfer of money and products from actor to actor was depicted in money flow
and product flow respectively.
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The sustainability was measured under four factors: economic, social,
environmental, and technical. The weighted index method used for calculating
sustainability and weightage of indicators was collected from the major actors by key
informant interview and focus group discussion. On analysis, it was found that auction
system value chain showed higher sustainability, raw and ripe banana value chain
exhibited low sustainability and other chains depicted medium sustainability. In auction
system value chain, actors were highly equipped with economic factors, socially
forward, environmentally aware and technically well advanced. The major actors were
from tribal community of Agali region, were less oriented towards marketing aspects,
socially backward, poor in handling and use of plant protection chemicals and
technologically less adapted, the raw and ripe banana value chain showed less
sustainability among the others. The result of Karl Pearson correlation analysis revealed
that independent variables namely profitability, credit availability, government support,
labour availability, perception on soil health, waste management, environmental
awareness, use of micronutrients and botanicals, integrated pest management, propping
method and pre cooling and processing of banana showed highly significant correlation
with the sustainability of the chains. The constraints on sustainability of banana value
chain were grouped into four categories: economic, social, environmental and
technical. Analytical hierarchy process was used to rank the constraints and the results
exposed that economic category ranked highest, followed by technical, social and
environmental categories. Invasion of cheapest banana from neighboring states,
inadequate value addition centres, exploitation of producers by middlemen in rural
areas, and product loss due to wild animal attack were the highest ranked constraints in
the above-mentioned categories.
Based on the sustainable food value chain framework developed by Food and
Agriculture Organization (FAO), the study proposed a conceptualised sustainable
framework on the core value chains of study area which relates to the actors, their core
functions, sustainability dimensions and the enabling environment. The value chain
study can be adopted to the other major crops in Kerala to analyse the sustainability and
the framework can be adopted for policy making.