KHDP success inspires visit by EU panel

Ajayan in Kochi

PK Kesavan

Kerala's strides in horticulture development has been an example for many to emulate, given the recent request for a visit by the ambassadors of the European Union nations. During their visit in October, they plan to share Kerala Horticulture Development Programme’s (KHDP) successful approach and achievements. KHDP has been succeeded by the company Vegetable and Fruit Promotion Council, Keralam, (VFPCK), where the majority stake is held by farmers. The project, which two years after the launch had failed to meet most of the targets, has now now turned to a replicable model.
Council’s director PK Kesavan, in an interview to The Financial Express, speaks about the programme which has been ranked as the most successful agricultural project the European Union has supported in the country.

On objectives of the project and how far its successful
The project, launched in 1992 with the intention of giving the farmers of the state, supplementary income by increasing the production of high-value horticultural crops. The programme aims at establishing a replicable methodology to make the fruit and vegetable market an important sector in Kerala’s agricultural production pattern. The seven-year programme has been supported by the European Commission. The support was to the tune of euros 28.7 million (Rs 119.9 crore) and total outlay was euro 36.7 million (Rs 131.4 crore). A review mission had felt that since 1997, KHDP had been implementing the components of the programme successfully and by the end of 1999 most of the physical targets had been achieved. As per an ex-ante economic cost-benefit analysis, there was a good internal rate of return (IRR) of 36.2 per cent compared to the projected 32 per cent. Accounting for inflation would give it a real rate of over 20 per cent.

On the project’s marketing strategy
In our novel marketing approach, the trader comes to the farmer. There is the idea of group marketing, where farmers bring their produce to a particular centre, a bulking point, where the trader comes to take the material. There is systematic accounting and the returns are shared. These centres are also market information centres, where farmers get to know all the details about product prices and can sell their produce. There are 86 such centres. After functioning satisfactorily for a year, they are registered as societies. Presently there are 31 such registered societies.

On how the new company would be beneficial to the farmers
The new charitable company — VFPKC set up on January this year — has an authorised capital of Rs 1 crore and the paid up capital is Rs 10 lakh, which by 2002 would be Rs 20 lakh. As per the agreement a minimum of 50 per cent shares will be held by the the farming groups of self-help groups (SHGs). The Government will have 30 per cent share while 20 per cent has been set aside for participatory institutions like SBI, SBT and Union Bank. Nabard and the National Horticulture Board (NHB) plan to take share. So far 432 SHGs have taken shares, each worth Rs 1,000.

On the areas that need to be given more attention
Several areas need attention. First, management information system. Secondly, pest control management. In collaboration with Indonesia, the Council plans to have farmer field schools. This should help farmers reduce the use of chemical pesticides and promote organic farming, which should fetch the farmer a better deal.

On why does the state depend on other states for sufficiency in vegetables
It is not the goal of the Council to make the state self-sufficient in vegetables. The Council’s aim is to help farmers and create better conditions for them so that their income will be optimised. The Council can help produce those vegetables suitable to the state’s conditions.