International Conference on Technology and Business Management March 28-30, 2011 15 Sustainable Agriculture for Increasing Efficiency of Tomato - Value Chain in Uttarakhand (India) Rohatash K. Bhardwaj B. K. Sikka M. L. Sharma Ashutosh Singh N. K. Singh dr_rohitaash@yahoo.co.in bksikka@gmail.com mlsharma_cabm@yahoo.co.in ashutosh_singh@yahoo.com nirdesh75@gmail.com College of Agribusiness Management, Pantnagar Rahul Arya drrahularyavet@gmail.com Symbiosis Institute of Distance Learning, Pune 1. Introduction Horticultural crops being high value crops are important in raising the incomes of the farmers besides creating employment opportunities. India, bestowed with wide range of agro-climatic and bio-diversity is ideal for growing a variety of agricultural crops, which includes large number of horticultural crops. Horticulture in India has gained its credibility for providing sustainable income, nutritional security and for providing employment opportunities, both in rural and urban areas. Tomato is one of the most widely grown temperate vegetable crops grown in Himalayas and tarai region of Northern India. Almost all the tomatoes grown in India come from its three mountainous and tarai states i.e. Himachal Pradesh, J&K and Uttarakhand. The supply chain of tomatoes, which is one of the main the temperate vegetable crops of Uttarakhand, is laden with inefficiencies across the entire value chain leading to poor price realization of growers on one hand and exorbitant prices paid by consumers on the other. A major share of this consumer rupee goes to a miniscule number of market intermediaries who exploit the farmers due to poor marketing linkages, virtually non-existent cold chain infrastructure and processing facilities. The growers still follow the age old cultivation practices and have no idea of consumer needs and preferences, market prices, various government schemes, scientific agronomical practices especially agri-inputs, sources of timely and adequate credit availability and market linkages. The tomato raising farmers of Uttarakhand suffer due to inadequate infrastructure especially cold chains, absence of demand forecasting and meagre value-addition. They also lack information on scientific cultivation practices, market prices, consumer preferences and market linkages. The purpose of this research paper, as such, is to integrate the information platform for various stakeholders and design an value chain enabled tomato supply chain that will benefit millions of tomato growers, processors, distributors, dealers, exporters of fresh& processed tomato products and above all consumers. The study will also provide an action plan to the policy makers and private players like HPMC,Kisan and Adani thus creating spin-offs which will stimulate social, economical and sustainable development of India. 2. Value Chain of Tomatoes In Uttarakhand, there is huge potential of vegetable production. Farmers are growing vegetables in a very good amount. In Uttarakhand there is 1.04 million Tonnes of annual vegetable production from an area of 80580 hectare. The value chain of tomato in Uttarakhand consists of a number of stakeholders like agri input providers, farmers, local collectors, commission agents, wholesalers, retailers, processors and consumers. This leads to decrease in potential income of farmers who enjoys only 50 per cent share of consumer rupee. Farmer faces several problems like fluctuation in demand, fluctuation in prices, post harvest losses which ultimately make the value chain inefficient. Also, only 5 per cent of farmers give their produce to processors. As many as 57.5 per cent sample farmers were found unwilling to sell their produce to processors. Cost of production of tomatoes is approximately Rs. 1,500 per ton i.e., Rs 1.50 per Kg and in peak season, farmers have to sell their produce at very uneconomical prices. This restricts farmers to invest more on production of crop. Some farmers (mainly from Haldwani region) have started giving their produce to retailers directly so that they expend less and earn more. Prices at mandi are decided on the basis of negotiation power of commission agents, farmers and local