1. access
Development Services
Prospects for Setting up of
Rural Business Hubs
in the North East
A feasibility study

2. AboutACCESS
About ACCESS
ACCESS is a global partner of choice providing inclusive and
innovative livelihood solutions enabling the poor to
The Vision
overcome poverty and live with dignity
To build the capacity of community-based institutions that
Mission
deliver relevant financial and livelihood development
Statement
services to the poor and unreached households
Ability to work at scale
To invest in community based institutions & models
Focused on women’s empowerment
Builds inclusive value chains in favour of the primary producer
The USP
Builds local capacities of capacity builders / NGO partners
Strong market focus
Develops “lift and shift” models for replication of experiences
Incubator of innovations
Strives to achieve double bottom line impact

3. Program Units
Microfinance
Livelihoods
Microfinance Technical Non Farm Sector
Services
Farm Sector
Livelihoods
Innovations
Virgin
Investment
EARTH
Fund
Livelihoods
ACCESS
Innovation
Microfinance
Initiatives
Alliance

4. The NorthEast Study - Methodology
Secondary data collection / background research on production,
stakeholders, value chains
Mapping the potential for four agricultural commodities based Rural
Business Hubs in the north-east
Undertaking Diagnostic study : field visit, situational analysis,
assessing market demand, availability of infrastructure and
identifying the stakeholders in the value chain (public and private).
Identifying key constraints for each commodity at each level of the
value chain.
Administration of questionnaires, checklists and structured
interviews for stakeholders at different levels
Participatory analysis on field
Compilation and analysis of the researched data for RBH feasibility
Analyzing data and preparing an action plan

5. Highlights
Though the NE region has a high potential for development of
horticultural crops, cash crops, spices, livestock, fishery etc., efforts have
not been made to develop these sectors on a commercial basis
Lack of an effective coordination mechanism to highlight and optimize
the potential
Poor cultivation practices and lack of desirable planting material
hampering productivity
Lack of dedicated infrastructure for processing / value addition
Lack of market facilities
Scarcity of trained manpower and extension support
Lack of financial linkages
Lack of funds for value added products and marketing components
Need for flexibility in state level schemes for the benefit of farmers

6. Highlights
Identified four potential commodities for immediate setting up of
RBH in Northeast: Ginger ,Turmeric, Passion fruit and Pineapple)
Intensive pineapple cultivation is present in Cachar (297 farmers)
and Vairengte (500,000 farmers)
There are 542 farmers involved in passion fruit cultivation on 2,232
acres of land in 37 villages in and around the Churachandpur town in
Manipur
No Single window mechanism for coordination with multiple
departments in the NER.
No takers for Horticulture Transport Assistance Scheme introduced in
2001, in spite of modifications in the scheme?

7. Key Stakeholders for setting up
Rural Business Hubs
AMFU , Mizoram
IFAD
FARMGATES : Assam and other states of Northeast
NERAMAC : Tripura ,Assam ,Meghalaya
APEDA: All States in the Northeast
Calypso Foods
Futures Group

8. Commodity-wise potential locations for
Rural Business Hubs
Pineapple
Region Production Potential buyers / stakeholders
Assam: 240,990MT Arren Foods Pvt Ltd
Jorhat , Karbi Anglong OMFED
& North Cachar Hills NERAMAC
Meghalaya : 7,000 MT Farmgate Alliance,
Ri Bhoi, East Khasi NERAMAC
Hills, Garo Hills,
Umsing, Nangpo
Manipur 70,000 MT Calypso Group
Future Group
Tripura 115,829 MT NERAMAC
Kumarghat Piyush Agro Ltd
Longtari
Mizoram 7,000 MT NERAMAC & OMFED

9. Commodity-wise potential locations for
Rural Business Hubs
Passion Fruit
Region Production Potential buyers / stakeholders
Manipur 1,500MT Calypso Foods
Tribal Areas along (Manipur) Future Group
Barak River 4,800 MT
Churachandpur (entire NER)
Turmeric
Assam 20,360 MT ITC, Reliance Fresh, Azadpur
Karbi Anlong (Mizoram, Assam, Mandi, Delhi, Sabka Bazaar,
Meghalaya) Subhiksha
Mizoram
Mamit District
Rengdil
Tukkaiah, Phaileng
Lailen, Khangumum

10. Commodity-wise potential locations for
Rural Business Hubs
Ginger
Region Production Potential buyers / stakeholders
Halflong 138,370 MT Dabur, ITC, Reliance Fresh,
NC Hills (entire NER) MDH, Ashok Masala, Tata Tea,
Barni Haat Piyush Agro Ltd.

11. Traditional Value chains
National
wholesale
markets
Consumer Local retail Markets:
Packaging /
small shopkeepers
branding
Retail Markets: small shopkeepers
Processing: small
Wholesale Markets: traders Large processing
scale processing units
houses
Transportation: Middlemen
Commodity Aggregation : Middlemen
Cluster
Production : Primary producers

12. Value chains under RBH
National wholesale
markets
Exports
Retail Markets
Transportation
Packaging /
o Credit
branding
o Inputs supply
o Technology
Processing: primary Processing: corporate
o Information
producer cooperatives sector
o Benefits from
Govt.
Aggregation : primary
Rural programs
producer cooperatives
Business
Hub
Production : Primary producers

13. Benefits of a Rural Business Hub
2 4
1 3
Economic Social
Commercial Environmental
Benefits Benefits
Benefits Benefits
1. Sharing & 1. Employment
1. Enhanced 1. Aids in
Pooling of generation
chances of decongesting
resources
securing units from
2. Compliance
larger urban areas
2. Sharing to trade
contracts
Business related
2. Ensures that
Development barriers
2. Greater environment
& Operating
bargaining al safety
3. Ensures
Costs
power with standards
enhanced
markets are
3. Access to security
maintained
New during the
3. Effective
Technology start up
presence in 3. Various
phase
the market forms of
4. Value
place pollution
addition
always under
within the
4. Attracts
check
region
corporate
interest /
investment

14. Role of a Rural Business Hub
Markets
Private
investments Sector
Government
Programs / entitlements processing
PRIs
information
RURAL BUSINESS HUB Technology
seeds
Enhanced
Input Fertilizers /
productivity
suppliers pesticides Technical
Service
aggregation
credit Providers
Primary
Producers

15. The ACCESS Livelihoods framework
INCLUSIVE VALUE CHAINS
Sub-Sectors
Clusters
Dissemination
SPARC Replication
Producer Upscaling
Company

16. Delivering Sustainable Services
A seven-step / four-year sustainable strategy
Sub -sector Integrating
Identify Achieve
Identify Set Up Establish
analysis the value
potential Sustain-
potential the the
chain
clusters ability
sub SPARC Producer
sectors Co.
undertake
Environ- A technical Identify help to Based on
those
cluster
ment, support primary develop a the value
that
diagnostic
infrastru- team to producers business of
relate
studies
cture handhold within the plans, link services,
closely
compara- the cluster, with input SPARC
to the
tive & producer organize suppliers, will evolve
liveli-
competitive Co., them into credit as a fee-
hoods of
advantage, provide producer agencies, for-
the poor
status, technical co., help TSPs, service
TSPs, support to set up the promoters, model to
future the cluster, govern- with their provide
potential, enable ance and entitlement long term
gaps & replication manage- s and with support
strategies ment markets the cluster

17. Investments Required for incubation of Rural
Business Hubs
Organizing Primary Producers
Aggregation points
First level Value addition centers
Cold storage and warehousing facilities
Refrigerated vans
Processing centers (Suitable to the location)
Packaging / branding
Quality material enhancement
Market tie ups and brand building

18. Current constraints to setting up of Rural Business
Hubs
Lack of funds for setting up processing units in the region
Financial constrains for development of a holistic project based
on a value chain analysis
Scarcity of trained manpower and extension support service
provider
Lack of a facilitators for aggregating all the schemes and
potential stakeholders into one common interest of an RBH
Lack of awareness and infrastructure in all the States resulting
in a very poor response from exporters/farmers to take up new
ventures.
Cross boarder transportation issues
Remoteness of the region

19. Potential for corporate intervention
Setting up of 3-4 strategic fruit collection points to facilitate aggregation
Creation of a market yard for sale of raw fruits in the local market
Setting up of a Rolling Fund to pay farmers as and when they bring their
produce to the collection point. Currently, the Society’s pays the farmers
only after it receives payment from the factory.
Setting up of a processing unit in the production area is an essential
need – be it for passion fruit, honey or aromatic and medicinal plants --
due to the persistent law and order situation in the state that prevents
movement of perishable fruits at times.
Need felt for technical guidance in establishing the processing unit and
incorporating production techniques such as marketing of produce in
various forms like raw, juice/squash, jelly, jam, pickles, etc.

20. Recommendations for setting up Rural Business
Hubs
Need for a Resource Agency to bring convergence and coordination
among stakeholders
Assign start up funds through on-going programs of the Government
(SGSY, Backward regions, cluster development)
Need for organizing primary producers / processing coops
Develop a bankable Business Plan for the Rural Business Hub
Secure credit linkages
Attract private capital for setting up of dedicated infrastructure for
value addition / processing
Establish sustainable market linkages
Investments in brand building of the RBH region / as also of the
commodity