A PRESENTATION ON SUPPLY CHAIN MAPPING OF BETEL LEAF IN ORISSA

Objective of the study Betel : An overview Types of Betel leaves B Area of Betel Farming Supply Chain of Betel Leaf Market Profile Transportation Research Methodology Data Analysis Findings & Suggestions

Betel : An overview
IMPACT ON NATIONAL ECONOMY Provides a NI of Rs 6000- 7000 million every year. About 20 million people derive their livelihood directly or indirectly, from production, processing, handling, transportation and marketing of betel leaves in India. About 15-20 million people consume betel leaves in India on a regular basis. leaves worth about Rs 30-40 million are exported to the foreign countries.

An Overvie w

MEDICINAL & SOCIAL VALUE Traditionally used for the treatment of bad breath, constipation, swelling of gum, headache, ring worms, etc. Also known as a mild digestive stimulant.

Contd..
CONSUMPTION PATTERN
The average amount of prepared betel taken by a consumer is 11. The average amount of leaves consumed by a family in An Overvie w a month is 3.22 kada/161 leaves. 82% consumers prefer medium sized betel leaves. 91% consumers prefer fibreless betel leaves.

Types of Betel leaves

TYPES MAHATA JABA RASI

AREA OF BETEL FARMING

AREA OF BETEL FARMING IN KAKATPUR BLOCK

AREA OF BETEL FARMING IN ASTARANGA BLOCK

No. of betel vine orchards in different blocks in 2001

NAME OF THE BLOCK DISTRICT NO. OF ORCHARDS NO.OF FAMILIES DEPENDING ON BETEL LEAF FARMING

Kakatpur Astaranga Nimapara Goap Balipatana Balianta Niali Kantapara

Puri Puri Puri Puri Khurda Khurda Cuttack Cuttack Total Values

3500 2750 2770 2800 1560 270 3150 1620 18420

3500 2750 2770 2800 1560 270 3150 1620 18420

Area of orchards taken in average=0.10 acre/ 0.04 hectors .

QUANITY OF PRODUCTION PER ACRE Months Jan Feb Mar Apr May June
Quantity

200000

200000

250000

300000

300000

300000

Months
Quantity

July
350000

Aug
350000

Sept
350000

Oct

Nov

Dec

300000 250000 200000

Quantity of production
350000 300000 250000 200000 quantity 150000 100000 50000 0 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec month

Series1

PRICE CHART FOR FARMERS

Months
Price per 1000 pieces

Jan 200 July 70

Feb 200 Aug 70

Mar 120 Sept 70

Price Chart
Series1

Apr 80 Oct 80

May 80 Nov 120

June 80 Dec 200

Months
Price per 1000 pieces

200 150 price 100 50 0 Jan Mar May Jul month Sep Nov

Measurements
The vineyard is called as Baraja. Measurements of baraja are in Auda, Gachha, Guntha, Acre, Hectares 1 auda=9 fts. 1 gachha:- one row of the betel vines In 1 auda of 1 gachha there are 20-22 vines. 1 guntha= 4 decimal 1 acre=25 guntha 1 hectare= 2.5acre The betel leaves are measured by Kada & Pana. 1 kada=50 number of betel leaves 1 pana=80 kada =4000 number of betel leaves 1 kada 300 gm 1kg 166 no. of leaves 1 quintal 16666 no. of leaves= 4.16 pana

SUPPLY CHAIN OF BETEL LEAF

Producer Commission Agent(1) Wholesaler Consumer

Commission Agent(2) Trader Retailer

MARKET PROFILE
The whole market is an unorganized market (absence of RMC). Trading market for Puri:- Madhya Pradesh, Gujurat, Mumbai, etc. Domestic market for Balasore:- Mumbai, Delhi, Agra, U.P, Banaras, Bihar, etc. Banaras - largest market for betel in India. Banaras - great demand for cured betel leaves. Balasore is famous for cured betel leaves. Both Puri & Balasore betel market are of same size and capacity.

NAYAHAT
Assembling market:- Nayahat Area of coverage:- Kakatpur block, Astaranga block, Nimapara block, Niali block, Gop block etc. Other nearer betel Market places:- Pipili, Niali, Kundhei, Othaka, Balipatana, etc. Market days:- Sunday, Monday, Wednesday, Friday. Local markets for transaction:- Bhubaneswar, Cuttack, Bhadrak, Chandbali, Kendrapara & Jharsuguda, etc. Domestic markets:- Mumbai, Gujarat, Madhya Pradesh, Allahbad & Surat, etc. Quantity transacted per day:- 2000 pana =8000000 leaves. Local consumption:- 920 pana /day= 3680000 leaves. Domestic consumption:- 1080 pana /day= 4320000 leaves. Farmers sale the leaves through commission agents. No. of agents:- 40-50. No. of wholesalers:- 80 There are 7 big wholesalers present in Nayahat.

Kundhei hata
Distance from Nayahat: 12km. and from Kakatpur: 6km. Days for market: Monday, Thursday No. of wholesalers: 60 Permanent Wholesalers: 20 Temp. wholesalers: 40 Quantity transacted per day:- 1500 pana Market charge: Rs. 20 per day per wholesaler. Farmers directly deal with the wholesalers. Most of the leaves are gone to local markets.

Distance: 6 km. from Nayahat & 2 km. from Kakatpur. Days for market: Wednesday, Sunday No. of wholesalers: 40 Permanent wholesalers: 15 Temp. wholesalers: 35 Quantity transacted per day: 500 pana Farmers directly deal with wholesalers. Market charge per day: Rs.20

Othaka hata

Niali hata
Distance: 10 km from charichhaka and 26 km from Kakatpur. Distance from Nayahat- 20km. Days of market: Sunday and Thursday. Quantity transacted per day: 1000 pana No. of wholesalers: 40 Farmers directly deal with wholesalers. Market charge per day: Rs. 20.

PIPILI HATA
Situated at Pipili in Puri. Distance from Bhubaneswar20km. Betel leaves are brought from Astaranga, Nimapara, Mukundpur, etc. Days of market: Monday and Friday. Quantity transacted per day: 1500 pana. No. of wholesalers: 60 Farmers sale their leaves through commission agents. Market charge per day: Rs.20 The betel merchants from Khurda, Nayagarh, Balugaon came to this market to buy betel leaves.

BALIPATANA HATA
Situated at Balipatana in Khurda district. Distance from Bhubaneswar: 20km. Near markets:- Dhanahara, Basantamala, Banamalipur. Days for market: Balipatana: Sunday & Thursday, Market time: 5am 8am. Dhanahara: Sunday & Thursday, Market time: 8am 11am. Basantamala: Sunday & Wednesday, Market time: 11am 2pm. Banamalipur: Saturday & Tuesday, Market time: 8am 11am. Quantity transacted: 1000 pana No. of wholesalers: 40 Market charge per day: Rs. 20 Most of the leaves from this market are sold in Bhubaneswar & local market.

MARKET OPERATION
Market starts at 10 am. Farmers keep their baskets in near the agents & the agent fixes the price. Farmers get their payment after 1.30 pm according to the current rate at that time. Then the wholesaler replaces the leaves in big bamboo baskets, with a capacity 20,000 to 24,000 leaves. The stalk of the leaf is cut from the middle to sale in Jabalpur & M.P as the betel of Berhampur. The petiole of the leaf is cut fully to maximize the shelflife of the leaf & to cure the leaves, which has a great demand in Banaras, Mumbai, etc.

COST OF CULTIVATION PER ACRE

PARTICULARS vineyard construction & maintenance preparatory cultivation & planting material Fertilizer Irrigation Pest & disease management Labour Rent Total COST Rs 60000 42000 50000 61000 7500 84000 8250 312750 Percentage of total cost 19.18 13.43 15.99 19.5 2.4 26.86 2.64 100

PARTICULARS Average yield per acre Total cost per acre Cost of production per 1000 betel leaves 3350000 312750 Rs.93.36

COST AND MARGIN OF DIFFERENT CHANNELS FROM NAYAHAT TO BHUBANESWAR

PARTICULARS Rs.per 1000 betel leaves 93.36 percentage of consumers rupee 42.44

1.Expences during cultivation 2.Expenses incurred by producer I) plucking, grading & Packing ii)Transport from field to market iii)cost of container, rope, straw iv)Market charge v)Agent commission margin of profit Price paid by the wholesaler

8.33 4.5 0.25 2 2.5 15.72 126.66

3.79 2.04 0.11 .9 1.14 7.14 57.57

3.Expences incurred by wholesaler

Rs. Per 1000 betel leaves

% of consumers rupee

i)Basket ii)Agent iii)Labour (packing) iv)Labour (loading) v)Labour (unloading) vi)Rope vii)Hessian cloth viii)Straw ix) Ice x) Polythene xi) Transport xii) miscellaneous xiii) Market charge Cost price of wholesaler margin of profit Price paid by trader

3.33 0.83 1.25 1.25 1.25 0.58 0.83 0.42 0.83 0.04 2.5 0.27 0.02 140.06 19.94 160

1.51 0.38 0.57 0.57 0.57 0.26 0.38 0.19 0.38 0.02 1.14 0.12 0.01 63.67 9.06 72.73

CONTD..
Expences incurred by trader i) market charge margin of profit price paid by retailer margin of profit price paid by consumer
Rs. Per 1000 betel % of consumers leaves rupee

4.17 20.83 185 35 220

1.89 9.47 84.09 15.91 100

COST & MARGIN OF DIFFERENT CHANNELS FROM NAYAHAT TO BILASPUR

PARTICULARS Rs.per 1000 betel leaves percentage of trader's rupee

1.Expences during cultivation 2.Expenses incurred by producer I) plucking, grading & Packing ii)Transport from field to market iii)cost of container, rope, straw iv)Agent commission margin of profit Price paid by the wholesaler

93.36

54.92

8.33 4.5 0.25 2.5 17.72 126.66

4.9 2.65 0.15 1.47 10.42 74.51

3.Expences incurred by wholesaler i)Basket ii)Agent iii)Labour (packing) iv)Labour (loading) v)Labour (unloading) vi)Rope vii)Hessian cloth viii)Straw ix) Ice x) Polythene xi) Transport xii) miscellaneous xiii) Market charge xiv)price paid to agent Cost price of wholesaler margin of profit Price paid by trader

Rs.per 1000 betel leaves percentage of trader's rupee 3.33 0.83 1.25 1.25 1.25 0.58 0.83 0.42 0.83 0.04 7.38 0.27 0.02 5 149.94 20.06 170 1.96 0.49 0.73 0.73 0.73 0.35 0.49 0.25 0.49 0.02 4.34 0.16 0.01 2.94 88.2 11.8 100

Packaging of betel leaves

For transportation of betel leaves packaging is most essential. Materials used for packaging:- Basket, Straw, Hessian cloth, Rope, Ice, etc. No. of baskets per packet: for domestic market:- 4 baskets (2 in upper side & 2 in lower side) for local market:- 2 baskets (1 in upper side & 1 in lower side) Ice is used for lengthening the shelf life of the leaf.

TRANSPORTATION
Farmers: in small baskets (of capacity 4000-6000 leaves) by bicycle, trekker, vans, etc. Wholesalers: in big bamboo baskets (of capacity 20000-24000 leaves) by trucks, 407 vans, autos,etc . Each truck carries 75-80 baskets of betel leaf. Each 407 van has the capacity to carry 30-35 baskets. TRANSPORTATION COST:
The transportation cost for a truck from Nayahat to Jharsuguda=Rs.6500.

Places Jharsugura-Bilaspur Jharsugura-Jabalpur Jharsugura-Ahmedabad Bhubaneswar-Mumbai

Distance (in km)Rate Per 1 quintal 206 616 1573 1938 Rs.55.38 Rs.114.25 Rs.258.75 Rs.296.00

DATA ANALYSIS
Amount of betel sold per day
AMOUNT 5-7 kada 7-10 kada below 5 kada more than 10 kada

Retailers
FREQUENCY 5 4 51 0 PERCENTAGE 8% 7% 85% 0%

p r e t g o a o n o b t l s ldp rd y e c na e f m u t f ee o e a
mr th n1 oe a 0 kd aa 0 % 57k d - aa 8 % 71 k d - 0 aa 7 %

b lo 5k d e w aa 8% 5

57k d - aa

71 k d - 0 aa

b lo 5k d e w aa

mr th n1 k d oe a 0 a a

85% betel retailers sell an amount of betel below 5 kada.

Preferable size of betel

Size large size middle size small size no parameter Frequency Percentage 14 40 0 6 26% 65% 0% 9%
65% retailers in Bhubaneswar demand middle sized leaf.

Percentage of size of betel preferred in market

no parameter 9%

small size 0%

large size 26%

middle size 65%

large size

middle size

small size

no parameter

Leaves bought at a time

AMOUNT less than 5 kada 5-7 kada 7-10 kada more than 10 kada FREQUENCY 23 27 2 8 percentage 38% 46% 3% 13%

percentage of buying capacity of retailers at a time

more than 10 kada 13%

7-10 kada 3%

less than 5 kada 38%

5-7 kada 46%

less than 5 kada

5-7 kada

7-10 kada

more than 10 kada

46% retailers buy 5-7 kada betel leaves at a time.

CONTD..
All most all the betel retailers buy the leaves in a gap of 2-3 days. All most all the betel retailers in Bhubaneswar buy their leaves from the mobile vendors. The buying price of 1kada betel leaves for retailers.

Seasons Summer Rs. 6.72

Rainy 4.65

Winter 19.18

Spring 9.98

The selling price of 1 kada betel leaves for retailers.

Seasons Summer Rs. 7.45

Rainy 5.31

Winter 20.53

Spring 10.76

The amount of betel sold is always same.

Consumers
No. of betel consumed per day QUANTITY FREQUENCY less than 5 2 38 consumers out of 65 take 105-10 21 15 no. of prepared betel. 10-15 38 The average amount of prepared more than 15 4 betel taken by a consumer is 11.
No. of betel consumed per day
40 35 30 25 20 15 10 5 0 38

frequency

21

less than 5 5-10 10-15 more than 15

2 1 quantity

Amount of betel leaves consumed in a month.

Amount Frequency 1 1 13 50 less than 1 kada 1-2 kada 2-3 kada more than 3 kada 50 consumers out of 65 are consuming more than 3 kada betel leaves in a month. The average amount of leaves consumed by a family in a month is 3.22 kada/161 leaves.

Amount of betel consumed per month

50 50 40 30 FREQUENCY 20 10 0 13 1 1 1 QUANTITY less than 1 kada 1-2 kada 2-3 kada more than 3 kada

Size large medium

Frequency 12 53

Percent 18% 82%

Type Fiberless Fibrous

Frequency Percent 59 6 91% 9%

Preferred size of betel leaf

large 18%

m edium 82%

large

m edium

Percentage(%) of type(fibreless/fibrous) betel consum ed

Fibrous 9%

82% consumers prefer medium sized betel leaves.

Fiberless 91%

Fiberless

Fibrous

91% consumers prefer fibreless betel leaves.

FINDINGS:
Lack of training & financial assistance from government. Absence of RMC (Regulatory Market Community). Traders & commission agents take a pivotal role in price discovery. Distance between assembling and trading market is high. Lack of quick transportation & cold storage facility. Marketed mainly as mouth freshener.

SUGGESSIONS:
Farmers should be well trained with modern techniques. Cold storage & refrigerated transportation. Direct linking between farmers and traders (e-choupal). Should be used for medicinal & other valuable purposes. Should be sold in sachets.