Horticulture Clusters (HC): Benefits & Challenges

Union Agriculture Minister Shivraj Singh Chouhan announced 18,000 crore expenditure on setting up 100 export-oriented horticulture clusters in the next five years to boost farm income.

About Horticulture Clusters (HC):

• Horticulture Clusters are defined as regional or geographical concentrations of targeted horticulture crops designed to enhance productivity and profitability through integrated, market-driven approaches.
• These clusters focus on the entire value chain, from pre-production to marketing, utilizing geographic specialization to boost efficiency and output.

Benefits:

• Reduces harvest and post-harvest losses by facilitating innovative technologies.
• Facilitates stakeholders in the global value chains and offers specialization in production, post-harvest management, marketing, and exports.
• Improves access to advanced technologies and better market linkage, enhancing the quality and quantity of produce.
• This organized approach helps achieve economies of scale, attracting better financing and fostering innovation through focused research and development.

Challenges:

• Lack of high-quality seedlings and rootstock, persistent pests, and climate change affecting crop productivity and overall financial viability.
• Substantial initial investment required and complexity in managing diverse stakeholder interests.
• Persistent issue of aligning clusters with existing agricultural practices and ensuring that benefits are equitably distributed among all participants, from small farmers to large agribusinesses.

Status of Horticulture in India

• Horticulture in India contributes about 33% to the agriculture Gross Value Added (GVA), highlighting its critical role in the Indian economy.
• India is the second largest producer of fruits and vegetables globally, trailing only behind China.
• The total production of horticulture crops in India for the year 2022-23 is estimated at 355.48 million tonnes.
• Despite its vast production, India’s share in the global horticulture market stands at nearly 1% only.
• Comparatively, India’s production of horticulture crops surpasses that of food grains, with the former achieving about 320.48 million tonnes from a much smaller area of 25.66 million hectares.
• The productivity of horticulture crops, at 12.49 tonnes per hectare, is significantly higher than that of food grains, which is 2.23 tonnes per hectare.
• From 2004-05 to 2021-22, the productivity of horticulture crops has increased by approximately 38.5%.
• According to the Food and Agricultural Organization (FAO), India leads the world in the production of specific vegetables such as ginger and okra, and fruits like banana, mangoes, and papaya.
• In terms of exports, India is ranked 14th in vegetables and 23rd in fruits.
• Unfortunately, about 15-20% of fruits and vegetables are wasted at various points along the supply chain or at the consumer level, contributing to greenhouse gas emissions.

Steps Taken by the Government to Boost Horticulture:

• Mission for Integrated Development of Horticulture (MIDH): A centrally sponsored scheme for the holistic growth of horticulture, covering a wide range of crops with significant financial contributions from the Union and state governments, especially in North East and Himalayan regions.
• National Horticulture Mission (NHM): Implemented by State Horticulture Missions in selected districts across 18 states and 6 union territories to promote horticulture development.
• Horticulture Mission for North East & Himalayan States (HMNEH): Focuses on the development of horticulture in the North East and Himalayan regions.
• Central Institute for Horticulture (CIH): Established in Nagaland to provide technical support and training for farmers and field functionaries in the North Eastern Region.
• Coordinated Programme on Horticulture Assessment and Management using Geoinformatics (CHAMAN): Develops scientific methodologies for accurate estimation of area and production under various horticulture crops.
• Capital Investment Subsidy Scheme: Supports the construction, expansion, and modernization of cold storage facilities for horticulture products.
• Horticulture Cluster Development Programme (CDP): Aims to enhance the growth and competitiveness of identified horticulture clusters, improving exports by 20% and addressing sectoral challenges from pre-production to marketing and branding.

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