KALPETTA BAMBOO CLUSTER Under Ministry of Micro, Small & Medium Enterprises, Govt of India
Uravu, Thrikkaipetta P.O Kalpetta Wayanad district, Kerala PIN:673577
DIAGNOSTIC STUDY REPORT Nodal Agency Agency Khadi & Village Industries Commission Govt. of India
Technical Agency
NABARD Implementing Agency Uravu Indigenous Science and Technology Thrikkaipetta P.O, Kalpetta Wayanad District, Kerala PIN : 673577
Submitted By T.S. Sreekumar Cluster Development Agent
CONTENTS CHAPTER
INDEX
Acknowledgement
PAGE NO
3
Executive Summary
4
1
Introduction: Bamboo as green gold
7
2
Cluster Profile
13
3
Stakeholders profile
21
4
Production process & Value chain analysis
27
5
35
Analysis of Business operation
6
SWOC Analysis
38
7
Cluster map and Institutional Matrix
40
8
Our Vision
44
9
Suggestions & Action Plan
45
2
CONTENTS CHAPTER
INDEX
Acknowledgement
PAGE NO
3
Executive Summary
4
1
Introduction: Bamboo as green gold
7
2
Cluster Profile
13
3
Stakeholders profile
21
4
Production process & Value chain analysis
27
5
35
Analysis of Business operation
6
SWOC Analysis
38
7
Cluster map and Institutional Matrix
40
8
Our Vision
44
9
Suggestions & Action Plan
45
2
ACKNOWLEDGEMENT
This study would not have been possible without the active support from State Directorate of KVIC. I also acknowledge the timely expert
guidance
and support from the NABARD who is the Technical Agency for this cluster, during conduct of the diagnostic study and preparation of the report.
My since sincere re thanks thanks go to the Preside President nt and secreta secretary ry of Uravu Uravu and staff memb me mber ers, s, espe especi cial ally ly Sm Smt. t. Rema Rema K.M. K.M. for for the the whol wholeh ehea eart rted ed help help and and cooperation in completing completing the study study and preparation preparation of the report. I owe my gratitude to all those artisans and stakeholders of this cluster for providing me with every information and data required for the report.
The
acade academic mic suppo support rt fro from m nims nimsme, me, Hydera Hyderabad bad is also also thank thankful fully ly
acknowledged.
Finally I thank them all those who are involved in the study process directly or indirectly.
T.S. Sreekumar
Cluster Development Agent (CDA) Kalpetta Bamboo Cluster
3
EXECUTIVE SUMMARY
Introduction For many years bamboo related activities had been one of the traditional occupation/craft in Kerala. The artisans of this craft are mainly located in forest area especially in Wayanad district. As they belong to the unorganized sect sector or the the arti artisa sans ns had had been been expl exploi oite ted d by the the mi midd ddle leme men. n. The The Urav Uravu u indigenous science and technology study centre, an NGO registered under the Charitab Charitable le trust trust Ac Actt (Reg (Reg No 122/9 122/96:) 6:) in 1996 1996 and having having its Head Quarters Quarters at Thrikkaipe Thrikkaipetta, tta, Kalpetta, Kalpetta, Wayanad Wayanad district district of Kerala Kerala State State has been actively involved in the development of bamboo sector in the past 9 years. Under various interventions Uravu has regenerated this peculiar craft sector and now more than 500 artisans/person artisans/person including bamboo cultivators, cutters and building workers have been working in this sector and earn their livel livelih ihoo ood. d. With With this this rich rich expe experi rien ence ce,, Urav Uravu u have have deci decide ded d to take take up development of these scattered units in the nearby village of Kalpetta block and posed a proposal to Khadi Village & Industries Commission (KVIC). After a preliminary study and discussion, KVIC has agreed to support the proposal under SFURTI, its participatory model of cluster development and identified Uravu Indigenous Indigenous Science Science and Technolo Technology gy study study centre centre as Implemen Implementing ting agency (IA), NABARD as Technical Agency (TA) and, Shri T.S.Sreekumar, appointed by the IA as Cluster Development Agent from the panel provided by KVIC.
4
The Study
India has a rich tradition in traditional industries. The eco-friendly products of traditional industries not only have great potential for growth in production and export but can also lead to wide spread generation of employment opportunities in the rural areas of the country. With a view to making the traditional industries more productive and competitive and facilitating their sustainable development, the Central government announced a Scheme SFURTI with the objective to develop clusters of traditional industries in various parts of the country over a period of 5 years commencing 2005-2006. The Khadi & Village Industries Commission which is the Nodal Agency identified the Kalpetta Bamboo Cluster in Wayanad district under SFURTI. Accordingly the study has been undertaken in Kalpetta Bamboo cluster from 3rd May 2007 to July 2007.
OBJECTIVES OF THE STUDY:
1) To understand the socio – economic profile of the craft persons.
2) To gain better insight into the problems and issues to be identified and the potentials for the sustaining livelihood around bamboo in an environmentally sound manner. 3) To identify and propose priority areas of action and specific issues in promoting development of bamboo, taking into consideration its demand profile, whole value chain addition, various players involved in value addition, socio economic, technological, environmental and institutional dimensions. 4) To develop a broad strategy framework and guidelines for sustainable livelihood development around bamboo. 5) To make sure the whole hearted co-operation of all the members in the production and marketing by developing effective networks. 6) Provide adequate awareness and introduce bamboo products as an eco friendly alternative for plastic products.
5
7) Physical and financial interventions required for overall development of the cluster in a period of 5 years. The major issues, constrains and problems faced by cluster units emerged during the study were related to infrastructure, Finance, production, market etc. as summarized below. •
Majority of the producer groups are working in rented buildings. They have to spend a huge amount from their remuneration for rent.
•
The cluster actors are mainly depends on local banks/cooperative societies for their working capital requirement.
•
Market competition from other parts of the country, Competition from China in export market.
•
Non-implementation of effective management system to improve business performance
Absence of private, public partnership to promote R & D for value added products to explore new markets.
•
Migration of artisan to tertiary sector like construction
•
Inefficient linkages of the production-consumption chain of the cluster
The market potential of the tourism sector in Wayanad is not effectively tapped.
The existing tools and machineries of the cluster is insufficient to meet large orders.
•
Major problem faced by the artisans is absence of raw material storage facility. During rainy season it is very difficult to keep the raw material dry and during summer there is need to keep the raw material away from direct sunlight.
•
Due to poor financial health of the group, many times the artisans do not get their wages regularly and in time.
6
CHAPTER 1 Introduction: Bamboo as Green gold
Bamboo is woody grass belonging to the sub-family Bambusoideae of the family Poacae. Worldwide there
are more than 1,250 species under 75 genera of bamboo, which are unevenly distributed in the various parts of the humid tropical, sub-tropical and temperate regions of the earth. This natural resource plays a major role in the livelihood of rural people and in rural industry. This green gold is sufficiently cheap and plentiful to meet the vast needs of human populace from the "child's cradle to the dead man's bier". That is why sometimes it is known as " poor man's timber" . Bamboos has versatile uses as
building material, paper pulp resource, scaffolding, food, agriculture implements, fishing rods, weaving material, substitute for rattan, plywood and particleboard manufacture. Pickled or stewed bamboo shoots are regarded as delicacies in many parts of the country. The major user of bamboo in India is paper industry, which consumes sizeable proportion of the total annual production. s are good soil binders owing to their peculiar clump formation and fibrous root system and hence also play an important role in soil and water conservation. Genetic Diversity of bamboo
As already stated, India has 124 species of bamboo distributed through out the length and breadth of the country. North-east India supports about 50% of the total genetic resources which is followed by peninsular
India
where
the
Eastern
and
the
Western Ghats are located which accounts for
7
about 23% of the genetic resources occurring naturally. North-western India, Indo-Gangetic plains and the Andaman & Nicobar Islands account for the remaining diversity. More than 50% of bamboo species occurring in India are endemic, and roughly 19 species are rare and threatened. Research work on collection and evaluation of genetic resources of bamboos started in India in the 1970s, but the pace of work was rather slow. A provenance trial on Dendrocalamus strictus was laid at Forest Research Institute, Dehra Dun. This was followed by the work on selection, evaluation and ex-situ conservation of several economically important bamboos of north-eastern region at State Forest Research Institute, Itanagar. Under the aegis of All India Coordinated Research Programme on under-utilized and under-exploited plants, a beginning was made at the coordinating centre at Bashar,
Siang
district in Arunachal
Pradesh
to collect
the
available
germplasm from Arunachal Pradesh and Meghalaya and to evaluate the material. Bamboo Utilization
Bamboo is utilized for various purposes depending upon its properties. It plays an important role in the daily life of people; for house construction, agricultural tools and implements, as food material and weaponry etc. Besides being a convenient source of cellulose for paper manufacture and rayon, it supports a number of traditional cottage industries. Bamboo craft is one of the oldest of traditional cottage industries in India. The origin of this rural craft is traced from the beginning of the civilization when man started cultivation of food crops thousands of years back. People started making baskets, mats and many other products of household use with bamboo that was abundantly available in nearby forests. Later, tribal and rural people in the vicinity of bamboo forest took up this as a means of livelihood. Now bamboo craft is spread in all rural areas of the country and it feeds millions of traditional workers.
8
Bamboo is emerging as a major source of raw material for several processed products primarily due to its fast growth, wide spread occurrence and its multiple uses. The ten major species used in India for commercial purposes are Bambusa bambos, B. balcoa, B. nutans, B. tulda, Dendrocalamus strictus, D. hamiltonii, Melocanna baccifera, Ochlandra ebracteata, O. scriptoria and O. travancorica. MARKET AND SOCIO-ECONOMICS Bamboo Markets
There is a high demand of bamboo in different markets. It is normally marketed either as commercial or as industrial. The former is produced from live bamboo culms, which are more than 2.5 m in length. The bamboo pieces, which are less than 2.5 m. in length, are classified as industrial. of 2 m and 1 m length, known as bahi and sarava, respectively, are sold in the northern states. However, in most states, with lengths varying from 3 m to 9 m finds use in construction of houses. Price of commercial bamboo depends on its length and basal girth. The bamboo Trade Bulletin, a periodical published by ICFRE, gives prices in about 20 markets spread all over India. According to March 1998 bulletin (ICFRE 1998), depending on market location and species, the price of 100 bamboo of about 3 m length and about 20 cm girth lies between Rs.1500-1600; of about 5 m length and 20 cm girth between Rs.3500-5000; and of about 6 m length and 25 cm girth between Rs.5000-6000 (US $1 ~ Rs.42).India has been exporting s on a large scale. The export of bamboo as raw material is generally not permitted but value added products are allowed to be exported as well as imported. Departmentally harvested bamboo is transported to sale depot for auction and to different departmental outlets for sale to local people for their domestic and occupational uses. There are traders and purchasers from departmental sale depots who convert the s into marketable sizes as per the
9
demand of the consumers. s on private lands are sold to the consumers as rates are negotiated between producer and consumer. In some states, where bamboo is a nationalized produce, private producers at standard market rates sell it to forest departments. However, where bamboo does not come under state trading monopoly, it is sold by cultivators and growers through market channels (Singhal and Gangopadhaya, 1999). Information on different channels of production to consumption of bamboo in different parts of the country indicating market channels statewise, mode of marketing and constraints experienced in marketing is given in Table-8. Bamboo in Kerala
Twenty-eight species of bamboo and two varieties belonging to six genera are recorded as native of Kerala. These include genera such as Bambusa, Dendrocalamus, Pseudoxytenanthera, Schizostachyum, Sinarundinaria and Ochlandra. Besides these, over 10 species such as Bambusa vulgaris, B. vulgaris
var.
wamin,
B.
multiplex,
B.
polymorpha,
B.
balcooa,
Dendrocalamus brandisii, D. giganteus, D. longispathus, D. hamiltonii, Thyrosostachys oliveri, T. regia etc. are cultivated in home gardens and
forest plantations. The majority of bamboos in Kerala are found at an elevation of 50-1500 m above sea level. The species belonging to the genera such as Ochlandra, Bambusa and Dendrocalamus are seen extensively growing in large forest areas as brakes and reed brakes. The species like Bambusa bambos and Dendrocalamus strictus are adapted to the dry plains
and hilly tracts.
Their distribution is abundant in the most deciduous
forests. Bambusa bambos is generally found at an elevation between 50m – 1000 m and distributed throughout Kerala. Dendrocalamus strictus is distributed in the forests of Attappady, Nilambur, and Chinnar at an altitude of 150-750 m above sea level.
10
Industrial Scenario The global scenario
It is estimated that about 2.5 billion people use bamboo in one form or the other at the global level. The annual turnover is estimated more than USD 10 billion and this is estimated to shoot up to USD 20 billion by the 2015. China is the biggest player among the bamboo exporting countries. The total export value of bamboo products of that country id $550 billion per annum. Advanced research activities are conducted to utilize bamboo for efficient fuel generating systems. Networks like the international network for bamboo and Rattan (INBAR) are functioning at the international level. The Govt oif India is a signatory to this bamboo network. At the global level, primary processing and product manufacturing is shifting to a highly mechanized mode. Bamboo in India
India is the second richest country in terms bamboo genetic diversity with a total of 136 species under 75 genera. It encompasses about 8.96 million hectares of forest area, which is equivalent to 12.8 percent of the total forest cover of the country. The North East India holds the largest tock and diversity of s next to the N E, the Western Ghats area has the second largest diversity of s.
Though India has a wide area under, the yield per ha is estimated around 0.4 tonnes, which is very low in comparison to other countries like china, Malyasia & Costarica etc.
It is estimated that 8 million bamboo artisans are dependent on this craft for their livelihood. The annual turnover of the bamboo sector in India is estimated to be around Rs 6505 crores. By and large, this is a totally unorganized sector and has always been considered from the craft point of view and if considered other wise, for pulp making only. The livelihood
11
support provided by bamboo to the rural poor and the agricultural sector was overlooked. Bamboo craft has been practiced by the north Eastern States for centuries as their prime livelihood and income source and, in the process, the weaving skill of the artisans had involved to levels comparable with the craft persons from high skilled societies like Japan, China etc. though the product diversity still remains undeveloped. The Kerala Scenario
In Kerala, 28 species of bamboo are found to occur. The main species found in Kerala are Bambusa bambos, Ochlandra travancorica, Dendraocalamus strictus etc. Kerala has a large number of (around 11) types of thin walled
bamboos called reeds mainly of Ochlandra genera, which are used primarily for weaving purposes by the traditional artisans. Exotic varieties like Dendrocalamus giganteus, Dendrocalamus brandisii are also cultivated by
farmers in areas like Wayanad district. The Kerala forest bamboo is supplied to the artisans through State Bamboo Corporation and to the pulp units through KFD. Unlike the rest of India, 67.3% of the extracted bamboo in Kerala comes from home gardens rather than from the forest.
It is estimated that there are about a lakh people in the state dependent on bamboo for their livelihood. Recent data from the Panchayats indicate that from the early seventies onwards there has been a great drain in the number of artisans from the sector to semi skilled and unskilled jobs in the tertiary sectors like construction.
12
CHAPTER 2 CLUSTER PROFILE
History of the cluster:
Till the early part of the 19 th century, bamboos s were found abundant in the forest and home gardens in Kerala. Until recently, every village and almost every medium/large household used to have its own sufficient stock of bamboos. Every panchayats had its own bamboo working artisan families from the traditional communities. It was this traditional family of artisans, especially from the paraya (SC) community, who satisfied the requirement of the agrarian economy. Baskets, mats and winnowers were the main items produced. The artisan used to have direct access to their customers and this helped them in maintaining the demand supply chain successfully. Bamboo was also available in the common lands and stream banks, fringes of the forest areas etc. The traditional inhabitants of Wayanad are the tribal population. They were utilizing bamboo for their primary needs of food, shelter, hunting etc. Even today bamboo is a common item for making huts, temporary sheds, fence ladders etc. During the 1950’s with the progress in plantation crops, people from the plains started migrating to Wayanad and in the process settled down. Significant areas of bamboo forests were destroyed to set up plantation sites. Along
with the settlers came the bamboo
working
communities who started weaving items for the new agrarian sector that was coming up. Since Wayanad district has borders with Tamil Nadu, traditional bamboo working communities from these areas also settled in selected pockets.
The main items produced in Wayand are: Baskets/winnowers/mats/rain guards etc. Since the late 70s there was a boom in the construction sector and the traditional weaving communities started shifting to this sector. The higher wages paid by the sector was also an attraction. The shifting from paddy cultivation to cash crops like papper/coffee/ginger etc. created lesser 13
demand for the bamboo artifacts. The enforcement of the forest laws also restricted the availability of forest reeds for the communities. The net effect was that the traditional bamboo-weaving sector came to a crisis.
The newly created affluence of the 90’s from the higher prices obtained for the cash crops and the awareness on the social stigma attached to the bamboo artisans distracted the younger generation from taking up the bamboo work or upgrading the production systems or product diversification.
Entry of Uravu
Uravu Indigenous science and technology study center, a charitable trust, realizing the wide scope of bamboo, started working in 1996. The core idea that led to the setting up of Uravu in 1996 was that revitalization of indigenous science and technology and up gradation of the productive skills of rural people was necessary for ensuring sustainable development. The integrated effort of Uravu during the last 10 years could make sustainable advancements in the bamboo sector in Wayanad district, especially in propagation of specie suitable for commercial application, treatment of bamboo, designing and production of bamboo craft, training and setting up of micro enterprises, marketing etc. The agency is also making efforts for changes in the policies in favour of increased usage of bamboo. The studies conducted by Uravu revealed that the involvement of the communities other than the traditional community is necessary to remove the stigma attached to the craft. It was one of the reasons for the reluctance of the new generation in the traditional bamboo community form taking on to bamboo work. It was rightly observed that modernization and diversification of the sector with respect to the product and design, technology and marketing is much needed for the survival and growth of the sector. That paved way to the ongoing developmental activities in the sector.
Interventions of other Agencies/Departments
14
Since 2003 NABARD sanctioned a project for establishing mother unit and satellite unit in bamboo sector in the proposed cluster area. Under that programme 20 craftsmen were imparted one year training as well as a machine room. In the same year CAPART was given a 6-month skill up gradation training to other 30 artisans. Rastriya Sam Vikas Yojana (RSVY) is an ongoing project for establishing Micro Enterprises in the bamboo sector under the programme of the Govt of India.
Cluster area
The project shall be implemented at Kalpetta Block in Wayanad District, Kerala State, for a period of five years. This area consists of several bamboo artisan families and plenty of bamboo, which is the very basic raw material for the craft. The goal of the project is to ensure the livelihood of the poor rural artisans through the enhancement and value addition of bamboo craft/ product. One of the important characteristic feature of this district is the large adivasi population,
consisting, mainly of Paniyas, adiyas,
Kattunaykan
and
Kurichiyans. Wayand district stands first in the case of Adivasi population
(About
36%) among other districts in the state. Wayanad has large settler population. The Janis from Karnataka came in the
15
13th century. The Nair’s from Kottayam made an entry in the 14 th century and established their feudal life. They were followed by Muslims. There was largescale migration from southern Kerala in the early 40’s. Their hard work and sacrifice helped them to prosper. On the other hand, the last few decades have seen the complete marginalization of the indigenous people. Alienated from their land and victimized by the state, their status is a blot on the progressive ideals of Kerala Society. Syrian Christians, who came in the 1950’s from Travancore, were well established as plantation crops. Chola Naickens, who used to be proud people, were very hospitable to early settlers are now the worst affected, under abject poverty. In recent times Wayanad is struggling to deal with an agrarian crisis precipitated by the economic reforms. The farmer suicides of Wayanad have hit the headlines of national dailies along with that in other part of the country. It is witnessing to frequent farmer agitation for resolving the issue of debt trap, low prices for agricultural produces etc. Due to various problems, from the early seventies onwards there has been a great drain in the number of artisans from the bamboo sector to semi skilled and unskilled jobs in the tertiary sector like construction etc.
Presently most of the cluster actors are concentrated in Kalpetta Block area. But there is a scope for spread out to the whole district in a phased manner. Therefore, it is suggested that the cluster development activities may be concentrated in Kalpetta Block in the first phase and gradually extended to the other parts of the district as more actors turn up in those area as part of the training conducted under different programs and projects.
Socio economic status of the cluster actors
A baseline survey in order to identify the socio economic background of the bamboo craft/workers in Kalpetta Block was made according to the guidelines provided by the Technical Agency (NABARD office). The survey was mainly concentrated in Meppadi, Muttil, Vythiri, Kaniyambatta panchayats and one municipality.
Prior to the survey CDA was conducted Focus Group
16
Discussions in each unit. Among the 500 stakeholders 120 person were selected as random sampling and through direct interview and questionnaire the information were collected. The details of the survey are as follows. . (i)
DISTRIBUTION OF THE TYPE OF HOUSE OF BAMBOO WORKERS
The Table explains that out of the 120 houses, only 14.6% are good houses. Others are either kacha type or incomplete. This shows the low standard of living of these artisan/worker.
Type of House
Number of Houses
Percent
17 86 17 120
14.66 71.66 14.66 100
Pucca Kacha Incomplete Total
(ii)
DISTRIBUTION OF THE AVAILABILITY OF SANITARY TOILETS FOR BAMBOO WORKERS
From the table, it is clear that only 72.5 percent of the bamboo workers having sanitary toilets. Others are relying upon the open space for toilet facility. Toilets No Yes Total (iii)
Frequency 33 87 120
Percent 27.5 72.5 100
DISTRIBUTION OF THE AVAILABILITY OF DRINKING WATER
FOR BAMBOO WORKERS
The table shows that out of the 120 houses, only 25% have their own drinking water source in their compound. The rest have to depend upon the public water distribution system or on the neighbor’s well. Water Source Own source Neighborhood Source Public Tap Total
Frequency 30 33 57 120
17
Percent 25 27.5 47.5 100
(iv)
DISTRIBUTION OF THE AVAILABILITY OF ELECTRICITY CONNECTION TO THE HOUSES OF BAMBOO WORKERS
The table analyses the availability of electricity connection in houses of the bamboo workers. Out of the 120 houses surveyed, only 71 houses are electrified.
The rest 49 are depending upon kerosene for
lighting at night.
Electricity
Frequency
Percent
No Yes Total
49 71 120
40.83 59.17 100
COMMUNITY BASED DISTRIBUTION OF BAMBOO WORKERS
(v)
Following table shows that 40% of bamboo workers belongs to the SC/ ST community.
(v)
Community
Number of craft persons
Percent
General OBC SC ST Total
19 53 11 37 120
15.83 44.17 9.17 30.83 100.0
DISTRIBUTION OF THE EDUCATIONAL STATUS OF BAMBOO WORKERS
The table shows that out of the 120 bamboo workers, 5 are illiterate and 34 persons have studied only up to the primary level. persons have reached the graduation level. Educational Status Literate Illiterate Primary Secondary Higher Secondary Graduate Diploma Total
Frequency 5 6 34 52 21 2 0 120
18
Percent 4.17 5 28.33 43.33 17.5 1.67 0 100
Only 2
(vii)
DISTRIBUTION OF THE SIZE OF THE FAMILY OF BAMBOO WORKERS
The table analyses the size of the family of bamboo workers. Out of the 120 families, 65 are having only 4 or less than 4 members and 55 families have members between 5 to 9 members. Size 1 2-4 5-9 10-15 Total
DISTRIBUTION
(vi)
Frequency 0 65 55 0 120
OF
TOTAL
Percent 0 54.17 45.83 0 100.0
LAND
POSSESSED
BY
BAMBOO
WORKERS
From the table, it is clear that 22.5 percent of the bamboo workers have no land for their own.
(vii)
Land No own land
Frequency 27
Percent 22.5
1-4 cents 5-10 11-20 21-50 51-1 acre Above 1 acre
18 29 11 26 6 3
15 24.17 9.17 21.67 5 2.5
Total
120
100.0
DISTRIBUTION OF THE MARITAL STATUS OF BAMBOO WORKERS
Table analyses the marital status of bamboo workers identified.
(x)
Status
Frequency
Married Unmarried Widow Divorced Total
78 35 5 2 120
AGE-WISE DISTRIBUTION OF BAMBOO WORKERS
The table shows that out of the 120 workers, 470 are below 50 years of age. This indicates that these craft cluster has a lot of potential and can carry out this craft for many decades.
19
(xii)
Age Below 35 yrs. 36-50 51-60
Frequency 33 72 13
Above 60 Total
2 120
DISTRIBUTION SHOWING TOTAL NUMBER OF DAYS SPENT BY ARTISAN FOR BAMBOO WORK Frequency
Percent
51-100 101-150 201-250 251-300 Above 300 days
10 30 12 68 0
8.33 25 10 56.67 0
Total
120
100
The table analyses the number of days spent by the bamboo workers for craft/product.
It shows that majority of the bamboo workers are really
involved in craft.
However we also have to appreciate the fact that it is
impossible to dry the raw material in the rainy periods and also the dried bamboo often set fungal attack during these months. So only a few craft persons who have already stored adequate quantity of well-dried bamboo before the rainy season could do craft during the monsoon months. (xiii)
DISTRIBUTION OF THE MONTHLY INCOME OF BAMBOO WORKERS
The table analyses the monthly income gained by bamboo workers from bamboo activity. 63.33 percent of the bamboo workers receive less than Rs. 1000/- per month. This situation clearly indicates that a systematic and scientific intervention in the bamboo craft sector is utmost necessary. Such an integrated intervention could uplift the artisans from the poor state.
20
Frequency 76 20 16 8 120
501-1000 1001-1500 1501-1750 Above 2000 Total
Percent 63.33 16.67 13.33 6.67 100.0
CHAPTER 3 STAKEHOLDER’S PROFILE
The stake holders of the project are cottage level traditional artisans SHGs engaged in bamboo craft items, curtains, art work, dry flower making group, shoot products, cultivators, cutters, Uravu Eco link Ltd etc. The role of each of these actors is explained below. Bamboo shoot processing Unit
This is a ten women-working unit. The major activity of this group is preparation of bamboo pickles, Chammandi powder etc. The tribes in this area collect bamboo shoots from forest and sell this to the group. The group buys it an average of Rs 10/Kg. Except Aug-Oct
months
the
tribes
supplied
shoot
uninterruptedly. In a peculiar way the unit prepare their product. For selling their pickles and other related products the group mainly depends on local merchants, Uravu eco links, exhibitions and sometimes they get order from neighboring districts. Even though the unit is totally unaware about the new technological application in the premise of pickle sector and they didn’t get opportunity to visit modern pickle establishments. Now the average daily income of a unit member is Rs 60/only.
Bamboo Curtain units
21
There are about 24 artisans working in the unit, including
male and
female. The
group
members
together collect the reeds and bamboo from the forest then after they treat the raw material. The major activity of this group is making curtains using bamboo blinds. Presently the unit produces 10 models of bamboo curtains, price range from Rs 40 to Rs.80 per sq ft. The group has only two traditional looms so that the productivity is comparatively very low. When the wavers work in the loom rest of the group members shall be engaged in splicing the reeds. Presently the unit produces 10 models of bamboo curtains and found that they are being “sold as hot cake”. The major problem facing the unit is as follows: a)
All works are done manually so the productivity is comparatively low.
b)
The artisan in the unit using traditional looms and technology there is no other technological interventions applied in the unit yet.
c)
The existing working premise is not sufficient for the 25 artisans.
d)
During rainy season it is very difficult to drying the raw material so a drier machine is needed.
e)
Exporting opportunity is not exploited yet.
Bamboo Bag Unit
This is the unit run by 5 men and provides job opportunity to other 6 people. The unit produces a wide range of products like handbags, purses, mobile pouches etc. Using bamboo blinds, jute etc. This item have already undergone test market and proved to be of great demand in market. At present the unit has been
22
working in the NGO premise, lacking adequate special and mechanical facilities they can’t achieve their optimum level.
Major short coming of the unit. 1. Even though the unit is formed as Self Help Group, monthly meeting and minute keeping are not functioning properly. 2. In the present stage the unit is working in a very small room that is not sufficient for their work. 3. Now they have only three stitching machine because of the financial problem of the unit there is no more technological intervention applied. 4. The skill of the unit members and design of their products are not sufficient to compete in market. 5. Now their marketing operations are limited with in two or three districts.
Dry flower unit
This unit is working as Self help group and having 10 members. And they give job opportunity to other 10 members of nearby area. The women in the unit themselves collects bamboo flower from the forest, sometimes they seeking help from men and give wage for their work. Apart from bamboo flowers they use other dry leaves like areca nut palm, sisill etc. other raw materials they buy from Cochin market. The group didn’t get any training for product diversification and skill up gradation yet. The unit is also a member of ‘Kudumbashree’ (State poverty alleviation mission) and from Kudumbashree they got 200000/- as revolving fund, 50% is subsidy.
23
Using this amount the unit shifted their work in to a rented building. Each member earns 1000/- per month from his or her unit.
1. The unit knew that dry flower has good demand in the market, but the poor rural women do not have enough idea about marketing strategies. 2. They are mainly focusing exhibitions for selling their products, so they have to spend much money as rent. 3. The total work of the unit is done manually. No other technical intervention applied yet. 4. In the case of design and skill the unit is comparatively poor.
Bamboo Craft producers
There are more in 12 groups engaged in production items.
of
Majority
modern of
the
bamboo artisans
craft are
women. The artisans have got trained in the production of select items with the financial
assistance
of
various
government programmes. There are around 240 artisans out of which 60% work regularly. 90% of the artisans are from Kalpetta Block area. 20 to 30% of the artisans are multi skilled and can do a range of products whereas the others can produce only a small range of products. The income also varies from Rs.40 to Rs 150/- per day depending on skill and the product range. Marketing is done mainly through the buy-back arrangements with Uravu Eco Links Ltd, a marketing company promoted by Uravu.
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Bamboo artwork
The bamboo artwork units are located in Thrikkaipetta and Kalpetta having 8 members. The unit creates murals and pictures on treated bamboo pieces as well as draw pictures on other craft products for value addition. The treated raw materials are sourced mainly from Uravu. This unit has scope for diversification in products, designs and methods. In addition to these some individuals have also stated artwork in the district. The products have good demand in the tourism market. More inputs in terms of designs and quality are required.
Bamboo growers
There are around 100 bamboo growers in the cluster area who grow select bamboo species, which have commercial value. The bamboo is grown mainly in homesteads. This activity is picking up momentum as the demand is increasing.
Traditional bamboo artisan
There are about 25 individual families in Kalpetta block area belonging to the traditional craft communities. They are producing traditional item like baskets, winnower,
etc.
Majority
of
the
traditional artisan belongs to ‘Kavara’ community (ST), they used to sell their product directly to the customers in the villages. The decline of paddy cultivation affects their work adversely, because their products are mainly depending on paddy
25
cultivation and harvesting. Non-availability of raw material is major issues, which led to the stagnation of the traditional activity. Bamboo cutters and Suppliers
There around 15 persons who regularly supply raw bamboo for the needs of the cluster. They collect bamboo and reeds from forest, cultivators etc. and supply to Uravu. Where they are subjected to primary processing (cutting to size etc) and chemical treatment. In addition to this some of the craft units collect raw materials on their own.
Consumables and Hardware shops
The adhesive, polishing material and other consumables required by the artisan are usually purchased from the local shops in Kalpetta or other trading centers in the district. Specialized consumables not available in the local market are often purchased in small quantities. Purchase of big volumes through a common facility center would help the production units to get good quality materials at reduced rates.
Kerala State Bamboo Corporation
Reed is also procured from the Ankamali Depot of KSBC at times when sufficient reed is not available locally. (The corporation does not run a depot in Wayanad or other neighboring districts). The cluster is less depending on this source as the costs of transportation and the chances for damage are high.
Uravu Eco Links Ltd
This is the marketing hand of Uravu. The company purchases products from bamboo artisans/producer groups and markets through its 3 outlets located in Wayanad and one each in Kochi, Kerala’s business capital and Thekkadi, one of the important tourist destination in the state. The company also participates in exhibition at local/stat/national levels and
26
has developed trade relationships in major cities/towns across the country.
CHAPTER 4 Production Process & Value Chain Analysis
Production flowchart of Craft items
Procurement of pen reed from local vendors
Chemical treatment of RM
Selection of material for each
Cutting components to size
Design
27
Shaping and other related work
Assembling components
Papering and finishing
Polishing
Process flow chart of bamboo curtains
To Uravu Eco Link
Procurement of reed and bamboo from local vendors/forest
Cutting to size/silvering
Chemical treatment of RM
Colouring
Weaving on the loom
Fixing attachments
Finishing
Polishing
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Fitting at site
Flow chart of making dry flower arrangements
Collection of bamboo flowers and other material
Grading of materials
Cleaning washing
Coloring
Designing
Assembling into the pattern
Fixing attachment
Polishing
Finishing
Market
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Value Chain analysis •
Primary Activities
Inbound Logistics
Sourcing of bamboo: Sourcing of the raw material that is mainly done from three sources:
o
Local suppliers
o
Kerala State Bamboo Corporation
o
Direct Cutting rights from forest.
The reason for maintaining these different sources for bamboo has been the quality and the special categories of bamboo required. There is also a significant difference between the different sources in terms of price as well as the kind of activities involved in the process of procurement.
Local suppliers: In the case of local suppliers the materials are usually
brought to the Uravu site at Thrikkaipetta with their own conveyance and the organization is only involved in buying the products at a price agreed over by both the parties. The quality check and other associated activities are done right at the site itself. So there is no additional cost involved both in the process of procurement as well as paper work and additional manpower involved in it. KSBC:
In the case of material procured from Kerala state Bamboo
corporation the company ha to take the complete responsibility in sending their employees over to the auction site, making sure of the quality requirements are met and transfer the product to the organization with their own transportation means. In this case there is some additional cost involved in the entire process, which involves both manpower and transportation. It is to be noted that in spite of the quality checks done rejection rate is comparatively higher which also increases the total cost of procurement.
30
Direct cutting rights: Here there is additional cost of negotiation with the
forest department, arranging for personnel involved in cutting the s as well as transportation from the source (forest) to the organization is much higher relative to the other two sources.
•
Inventory management:
Raw material : Usually the raw bamboo coming from different sources, are
stored in the company facility and care is taken to prevent any fungal attack before the treatment could begin. There is no explicit inventory policy or system maintained through out the organization as such and is done on an ad-hoc basis. The orders for new raw material are usually generated under two circumstances. The orders are mostly generated keeping in mind the demand for different products j the market. But the demand evaluation is mostly done intuitively and there s no set rule for the same., In the case of any bulk order, mainly for construction purposes, the order is placed with KSBC.
In process inventory : This mainly includes the different grades of s treated
for further working as well as materials, which are being worked upon. There is no means of tracking of materials at different stages of the production process.
Finished goods inventory : Usually the company maintains a high amount
of finished goods inventory is usually stored either in the company owned stores or the company facility. Finished goods inventory has been a major problem for the organization in recent past mainly due to the fact that some of the slow moving goods have been stored for a long time and are susceptible to fungal attack and further degradation. Moreover there is also a problem of locked up working up working capital. Better forecasting technique is expected to provide some benefit in this respect.
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•
Operations:
Initial dressing: In the operations the raw bamboo coming from different
sources are dressed to remove all the unwanted materials including mud, branches etc and are cut into required length to facilitate the next process i.e treatment. This is a labor intensive process and done manually.
Treatment : This process is carried out to protect the materials from
degradation from fungal attack and other natural agents like moisture. This process is done manually. But currently the company has invested in machineries to make this process faster as well as less labour intensive. This will help in increasing the overall capacity of the organization.
Working: The bamboos purchased from the different sources are provided in
the units for woodworking and product development.
o
Model 1: In this model the processed bamboo together with the other materials are sold to the units at a predetermined price. After the working has been done the units are bought back by the company.
o
Model 2: In this case the bamboo and other materials are provided to the units and the final products are taken back after the unit have been paid a price for the labour involved.
Polishing and Painting
This activity is carried out on the finished products to give them the final look and feel. Painting requires skilled labour and is usually done only by specialized people.
•
Outbound logistics:
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There are different means by which products are being sold by the units.
To tourists visiting company facility: In this case there is no extra cost involved for transportation and selling.
In exhibitions: Here cost is incurred in transportation.
From
company
owned
Outlets:
Here
cost
is
incurred
during
transportation and other overheads.
Direct selling to the local merchants/people
•
Marketing and sales:
There is a separate entity, which looks into the marketing and sales of the products. There is no specific policy regarding marketing. Advertising is mainly carried out through exhibitions and products display at shops and some of the local hotels. Support Activities
Procurement: As mentioned before the procurement of the main raw
material; i.e. bamboo is carried out from three different sources. The procurement is mainly done on an ad-hoc basis and no particular policy is there for the same.
Enterprise Infrastructure: The Company uses some of the very
basis tools for its wood working process as well as provides some services
for
the
units.
The
company
has
contract
with
the
manufactures of the machines for the maintenance of the machines.
33
Value Chain Analysis of making one ‘ Rain Maker’
2 ½ F bamboo (Rs 7.50)
Treatment (Rs.10.00
Trans ortation ( Rs 10.50 Consumable ( Rs 13.50 Labor (Rs 48.50 Over head expenses like rent, maintenance etc (Rs50.50)
Transportation charge (Rs 51.00)
Paintin (Rs 54.50 Pa erin & Polishin (Rs 59.00 Packing and storage charge (Rs 63.50)
Dama e (10% Rs 69.85 Rs 70/-
34
CHAPTER 6
ANALYSIS OF BUSINESS OPERATION
There are more than 500 producers who make bamboo products through SHG/producers group. Among them the traditional bamboo workers are unorganized. They are producing the products their own way and selling those items in village level. The producers belong to poor, marginalized families, more than 80% are women About 75% of the producer group have made contracts with Uravu and Uravu Eco link Ltd for the supply of raw material and buy back the products as well as participating in the exhibition and direct marketing.
Product Range
The cluster actors are making variety of products. Some of them have demand in the market and some others are yet to be market tested/modified to the market preferences.
The important products are as follows. 1.
Woven lamp shades
2.
Carved lamp shades
3.
Script O pen
4.
Mobile phone Holders
5.
Baskets
6.
Bamboo curtains
7.
Bamboo art work
8.
Bamboo bags
9.
Bamboo & dry flower products
10.
Bamboo shoot pickles etc.
35
Availability of raw materials.
The raw materials are collected mainly from local farmers, wastelands etc. More than 100 grow bamboo suitable for commercial applications. The
bamboo
collectors
include
people
belonging
to
traditional
communities. As part of this program a bamboo cultivator’s forum should be formed that forum will ensure the sustainability of raw material. The primary processing- chemical treatment against attack of borer and fungi, cutting to size etc. are done at Uravu before supplying to the units.
Availability of infrastructure
Machinery
and
tools
are
the
major
requirements
to
facilitate
production of quality products. Introduction of mechanization would improve both output and quality needs. At present units have some minor tools, which is not sufficient for making quality products. The NGO Uravu has a mini machine room; a few artisans can use these machines.
Existing technology and need for skill up gradation
The technology interventions in the bamboo sector have been minimal at all level. Even at Bamboo Corporation no significant change has happened as regarding the scientific extraction, processing and product diversification of bamboos. Today, access to the latest technologies, designs and products are available and what is required is the vision to integrate the activities to the set goal. The quality of the product is a challenge the rural units will have to overcome. In the agrarian economies like Wayanad to orient the artisans to adopt such levels will be a tedious task. Awareness building by letting the artisans interacts with the customers during exhibitions, site visits, discussions etc will have to be undertaken to achieve the above results. A regular center catering to such requirements will be an essential part of the cluster that can be developed in Wayanad.
36
Scope of collective effort In the current market, bamboo products have a wider demand. But these groups cannot know its current possibilities. Through the formation cluster consortia they can be unified under one control and bring up their skills and social awareness. Through this, they can be made aware of the current possibilities in the market and as a result they will be able to make products according to the taste of the customers. In addition, by forming them as an approved consortium they can gain governmental schemes and grow further in the competitive market.
Scope for Diversification
Bamboo is said to have more than 1500 applications including high value industrial products. Presently the cluster products are restricted mainly to crafts, which forms a small part of the bamboo market. The other activities such as production of bamboo curtains, bags, dry flowers, shoot products etc had started only recently. All these activities have ample scope for development as well as diversification. Apart from these, there is scope for starting units in the following products in the cluster area.
1. Mechanized incense stick making 2. Agarbathies with bamboo sticks 3. Match sticks 4. Bamboo blinds based products 5. Bamboo charcol 6. Bamboo furniture etc
Marketing
Uravu Eco links Ltd is the main agency involved in marketing the products of the cluster. The company has a relatively good network with 5 eco shops and trade relations with a number of retailers in different states. After the preliminary discussion with company management, they are agreed to give majority of its share to bamboo producers. So that there is no need for establish a parallel marketing system in the cluster. The company is enough to strengthening the marketing capacity of the cluster.
37
CHAPTER 6 SWOC Analysis Production •
• •
Strength
•
•
•
•
Market
Eco-friendly, Biodegradable and medicinal value of the Raw material. Assistance from NABARD. Cluster actors are geographically placed together. Organized women force available under the SHGs Traditional and skilled labour Upliftment of women of the marginalized group Alternative to Plastic.
•
•
Weakness
Opportunity
KSBC not operational in the district. The nearest KSBC depot located at Nilambur in Malappuram District. No standard pricing for the products. Poor production management techniques exist. Lack of institutional linkages. Productive skill levels not comparable with artisans of other regions in the craft sectors. To ensure resource availability, bamboos can be cultivated in forest lands, farmlands river and stream banks etc utilizing the scheme under PFM, Environment protection and waste land development programs of the state and Central govt agencies.
38
Financial
Market potential through product diversification innovation and new applications. Increasing demand for eco friendly bamboo products Status of Wayanad district as a tourism destination. Chance for export Absence of effective market research Pricing to be standardized No presence in possible market segments such as corporate,expor ts etc. Which would help to gain more returns.
Existence of Bankers and developmental financial institution in the cluster area.
Priority of financial institutes for bamboo sector not existing . Lack of awareness about available financial supports.
Commons show room at prime location to provide marketing support. Trade fair participation to explore new markets.
Provocative approach of bankers for extending micro credits to SHGs Availability of finance under Cluster Development market.
Scope for technology up gradation to develop innovative products
Setting up research centre to explore new application of bamboo as building material.
With eco friendliness becoming major concern for global customers, bamboo products hold tremendous market potential.
Challenges
Non-Application of technology may affect sustainability. Non-implementation of effective management system to improve business performance Absence of private, public partnership to promote R & D for value added products to explore new markets. Regulated selling and transportation Migration of artisan to tertiary sector like construction. Labour oriented since the sector is in its nascent state. Inefficient linkages of the production-consumption chain of the cluster.
39
The market potential of the tourism sector in Wayanad can be effectively tapped. Modern technologies like Emarketing can be introduced Cheaper and competing products in plastic etc Market competition from other parts of the country Competition from China in export market.
Low or nil margins for artisans may effect substantially. Non provocative bankers may not support sufficient working capital for units
CHAPTER 7 PRESENT, POST CLUSTER MAP AND INSITUITONAL MATRIX
SBT
SBI
CBI
BAMBOO SHOOT COLLECTORS
Co-op Banks
Kudumashree
KVIB
BAMBOO SHOOT PROCESSING UNIT
DRY FLOWER UNIT LOCAL MERCHANTS DIRECT SALE
Bamboo
Procurement agent Bamboo harvesters Bamboo farmers
BAMBOO TREATMENT UNIT
BAMBOO UNIT
CURTAIN
&
WEAVING
EXHIBITIONS
CHAPTER 7 PRESENT, POST CLUSTER MAP AND INSITUITONAL MATRIX
SBT
SBI
CBI
BAMBOO SHOOT COLLECTORS
Co-op Banks
Kudumashree
KVIB
BAMBOO SHOOT PROCESSING UNIT
DRY FLOWER UNIT LOCAL MERCHANTS DIRECT SALE
Bamboo
Procurement agent Bamboo harvesters Bamboo farmers
BAMBOO TREATMENT UNIT
BAMBOO UNIT
CURTAIN
&
WEAVING
EXHIBITIONS BAMBOO BAG UNIT URAVU ECO LINK
METAL FABRICATORS
BAMBOO CRAFT UNIT (9 nos)
TRADITIONAL ARTISAN
Retail outlets Bulk Buyers
CHAPTER 8
Vision of the Cluster
The Kalpetta Bamboo Cluster will establish a niche market at both domestic and international levels by the year 2011. The producer groups will be equipped to become 100% competitive and self reliant through skill up-gradation, cost reduction through common purchase, product diversification and export marketing.
CHAPTER 9 Suggestions and Action Plan
I.
Social interventions
STRENGTHENING OF SELF HELP GROUPS (SHGs ) Even though the artisans are working as group basis but this group are not formally registered as Self Help Group. For getting other departmental benefit to this group it is essential to form these groups as SHG. A total of 20 SHGs shall be formed/strengthen as part of this project. Each group shall have 20 members.
II.
Technological interventions SKILL UPGRADATION TRAINING :
Compare to products from other states and countries the artisans’ level of skill at present is very poor for making products. This has to be improved and upgraded through a series of skill up gradation Programmes.
Each
training shall be for a period of 2 months. A total of 400 artisans can undergo skill training as part of this project. Skill up gradation Programmes shall include: Splicing:
Easy and convenient methods of splicing and reeds using very
simple tools. Weaving: Different methods of weaving curtains with most modern loom,
especially power loom. Blending: Blending bamboo with other natural fiber is something, which has
not been attempted so far. (Eg: blending bamboo with jute and cane ) This is having great scope and it has to be developed in an intensive manner. Dyeing: Special care and expertise is needed for using dyes, especially
vegetable dyes on natural fiber.
There is a special Research and
Development team functioning in Uravu for this purpose. But this team needs to be strengthened with adequate support.
2
Packing: Utmost care and efficiency is necessary for safe and attractive
packing of the products made by the artisans.
The artisans need to be
trained in this regard.
(b)
DESIGN DEVELOPMENT WORKSHOPS :
Design development is a very important aspect for developing new and value added products.
Special care shall be taken for designing new products
which can be conveniently used as alternatives for some of the plastic products. Empanelled designers of the Government of India or alumni of the National Institute of Design shall be the resource persons for the same. Each design development workshop s hall be for a duration of 15 days. (c)
Dye workshops
In addition to produce the products in various designs, it is needed to send these products into the markets in various colours. To give color on is some what hard. For this natural and chemical dyes can be used. But artisans do not know how to give this colour. So as a part of the training they should be taught how to give colour to blintz. Two months training will be given to selected 5 members from each batch ie total 100 members. After the training, they will impart training to other members of the batch. (d) Leadership Training A strong leadership is needed for a micro enterprise to have a constant growth. For the artisans who lack leadership qualities, cluster approach will help in bring out some people who have leadership skills. The people who are having leadership qualities shall be identified through group approach and provided leadership-training classes. Three-day workshops for 60 identified artisans from 20 such groups are required.
3
III.
Infrastructural related interventions. (a)
TRAINING CENTRE (On rental Basis)
At present the artisan working together as group basis in rented building. These buildings are not available for long-term work. So it is suggested that to build a common working shed for each group is necessary.
And a training center shall be hired for
conducting skill up-gradation training. One portion of the same can be used for conducting Design Development Workshops. This training center shall be at least 3000 sq. ft. and it can be taken for rent throughout the duration of the project (five year) After completing the skill up-gradation training, the artisans shall produce the products at their own respective work shed. The artisans can conveniently do this, as all of them will be supplied with tool kits during the training. (b) Common facility Centre (C F C) Towards the end of the project the SHG federation shall have a common facility centre of its own to pursue the activity on a commercial and sustainable basis. The feasibility of construction a CFC under SFURTI with land provided by the Panchayath/district Panchayath/PWD to be explored.
IV.
Financial interventions
The SHGs formed with artisans will be linked to State Bank of India, respective branches to meet the credit requirement of the artisans. The bank will be associated from the initial stage itself. Similarly, the Lead Bank of Kalpetta branch (Canara Bank) also expected to associated for credit needs of the artisans.
4
V.
Marketing interventions
(a). EXHIBITIONS: Exhibitions are a must for the proper marketing as well as dissemination of the possibility of making and using bamboo products. This is utmost necessary for exploring the local and domestic markets. Such exhibition of the products made by the artisans shall be conducted twice in every year for duration of 15 days as part of this project in a prominent city of India.
(b)
MARKET SURETY FOR THE PRODUCTS
Some value added products have already undergone test marketing and proved to be of great demand in domestic market. There is no doubt that these products will fetch good prices.
Uravu has facilitated the existing
cluster artisans for conducting several exhibitions/melas of their products and found that these products facing threat from North East products. This eco-friendly alternative for plastic has great potential all over the world. Uravu shall always provide its already developed marketing network (Uravu eco link Ltd) for the artisans of this project.
( c ) Website hosting Towards the end of the project the federation of artisans shall have their own website for promotion and marketing of the products for which all support will be extended by Uravu. VI . Other interventions.
(a) ENSURING THE SUSTAINABLE SUPPLY OF BAMBOO AS A RAW MATERIAL.
Encouraging the local people for massive planting of bamboo along the borders of inland water bodies, wet lands is must for the constant supply of raw material. A few plantations also have to be developed as insurance for the constant supply of bamboo. People in the area should be encouraged for planting in their own compound. It is legitimate to expect that people will be
5
