Value chain analysis of pineapple in ernakulam district

Abstract

Pineapple (Ananus comosus) is a fruit with excellent juiciness, exciting tropical flavour and enormous health benefits. It is a rich source of Vitamin A, B and C and also contains a large number of vital nutrients for human health with less fat and cholesterol. It can be used to produce a large number of value-added products like jam, jelly, squash, pickle, candy, etc., which not only provides remunerative prices for the farming community in a sustainable manner but also creates employment opportunities for the unemployed rural community. The research work entitled “Value chain analysis of Pineapple in Ernakulam district” was undertaken to prepare the value chain map of Pineapple in Ernakulam district, to assess the value chain production system; evaluate their technical efficiency; to identify the institutional and infrastructural issues that affect the competitiveness of the selected value chain and to propose interventions for upgrading the Pineapple value chain. The study area was confined to Ernakulam district of Kerala state, since it accounted for 60 per cent of the Pineapple production in the state. The sample respondents were selected from Avoli and Manjaloor Panchayats of Muvattupuzha block and Koothattukulam and Ramamangalm Panchayats of Pampakkuda block. Twenty Pineapple farmers were selected from each Panchayat at random. In addition, data was collected from ten processors, five traders, five transporters and twenty consumers using separate sets of pretested interview schedules by personal interview method. The total sample size was 120. The data analysis was done by value chain mapping (Commodity Chain Analysis), descriptive statistics, growth analysis, cost concepts, Production function analysis, Data Envelopment Analysis(DEA), marketing concepts (market cost, market margin, price spread, market efficiency), rank method and Garrett ranking technique. The results of value chain mapping revealed that the major core processes included in the Pineapple value chain were input supply, production, collection, wholesaling, processing, retailing and consumption. The main actors who actively participated in the value chain were input suppliers, pineapple farmers, traders, exporters, wholesalers, processors, retailers and consumers. The facilitators involved in the value chain were sucker dealers, Krishibhavans, transporters, Pineapple Research Station (PRS), Pineapple Farmers’ Association (PFA), Pineapple Merchants’ Association, Kerala Pineapple Mission and financial institutions. Cost of cultivation for Mauritius variety was estimated for three years. The input cost estimated for first, second and third year was ₹ 500575, ₹ 277742 and ₹ 248188 ha-1 respectively. During the first year major share of the Cost A1 was contributed by planting material. During second and third year lease amount contributed more towards Cost A1. Net returns at Cost A1 for first, second and third year were found to be ₹ 476105 ha-1, ₹ 512729 ha-1 and ₹ 289576 ha-1 respectively. Second year reported higher net returns since variable cost like machine, planting material and manure cost were not considered as ratoon cropping system was followed. B:C ratio for Cost A1, Cost A2, Cost B and Cost C for three years were computed and it was found that Pineapple farming was profitable business in the study area and more profit can be earned by cultivating Pineapple in owned land than in leased land. From Production function analysis, it was found that plant density significantly contributed towards the yield and increasing returns to scale (1.56) was observed for Pineapple farming in the district. Data envelopment analysis showed the efficiency of Pineapple farm with a mean technical efficiency of 0.73 in Ernakulam. Mean scale efficiency and allocative efficiency value of 0.83 and 0.91 was obtained respectively. The marketing cost and marketing margin in fresh fruit and processed product channels were observed and found that traders and wholesalers incur maximum marketing cost in fresh Pineapple and processors in case of processed Pineapple. Traders and retailers earn more profit in fresh Pineapple whereas, processors in case of processed Pineapple channel. Producer share and marketing efficiency were found to be high for fresh Pineapple than the processed Pineapple. High cost of planting material and scarcity of hired labour were the major constraints in Pineapple production. Price fluctuation and decreasing demand were the major constraints in Pineapple marketing. The interventions drawn to upgrade Pineapple value chain include: 1) Supply of subsidized inputs at the farm level 2) Good agricultural practices should be followed to produce cost effective and export quality Pineapple 3) Advanced and affordable technology should be made available to farmers for value addition activities 4) Market yards, storage facilities and processing plants should be established and 5) Commercialization of new and improved Pineapple products. To conclude, the Pineapple value chain is lacking in horizontal and vertical integration among chain actors. The small producer-farmers are not able to reach the final market directly as they are dominated by the extended value chain actors and this situation made their position weak and helpless in the market with less bargaining power.