Maize Bihar Report

Chapter 1: Introduction
1.1 Background and Context
Bihar is one of the largest maize growing state and the crop was grown primarily as a
subsistence crop to meet food needs for a long time till recently. But now like in non-
traditional areas (Karnataka and Andhra Pradesh), it is also grown for commercial
purposes (i.e., mainly to meet the raw material requirements of the animal feed sector).
It is third largest maize producing state contributing around 10 percent to national
production. Around 0.65 million hectare is presently under maize cultivation, which is
about 7 per cent of Gross Cropped Area (GCA) in the state and over 13 lakh farmers
are engaged in maize cultivation. During 2005-06, the state produced about 1.4 million
MT, which is about 5 per cent of the total crop production.
Maize can be utilized in many different forms by converting it into a variety of

products, through grinding, alkali processing, boiling, cooking and fermenting, such as
corn starch, corn flakes and cereals, ethanol etc. It also has many industrial
applications, which can make it a profitable crop in the state. Maize processing and
utilization pattern shows that in India, around 60 per cent of the total produce is for
animal feed, 28 per cent for human consumption and 12 per cent is used by the industry
(starch, brewery etc). In Bihar only 8-10% of maize (5% directly by the processors and
another 3-5% is being used by road side snack joints etc.) is processed within the state
despite the fact that the state has huge and rising marketable surplus.
While the area under cultivation, maize production & yield have increased during 1977
to 2007, there are only 8-10 maize processing units in Bihar. They are mainly into
milling of flour and production poultry feed. In absence of adequate processing facility,
the huge marketable surplus of Bihar, especially in rabi season depends completely on
other states for its consumption. Any obstruction in this trading chain in future may
lead into spoilage of that surplus, affecting the entire value chain.
26
Also due to inadequate processing facilities in the state, result more than 80% of
Bihar maize goes outside the state and gets processed there depriving it of value
addition and higher income for the people in the state. The processed maize in the form
of poultry feed and seeds then comes back to the state.
There is potential for processing of both high & low value added products in
maize sector in the state itself. There are factors contributing to increase in the demand
of processed maize. Some of them are (1) growing demand for eggs and chicken
leading to increased demand for poultry feed in the state; (2) the state has 8 lakh hectare
land under water which is suitable for fish farming; (3) increased demand for ethanol as
a fuel additive; (4) growing urbanization leading to increased demand for processed
food like corn flakes etc; (5) dairy sector is on growth path and this sector can provide a
good market for cattle feed products. Thus there is growing demand for processed
maize in the state and there is also adequate supply of good quality maize in the state.
Yet the processing industry in Bihar is almost non-existent as there are only 10
processing units in the state engaged mainly in manufacturing of traditional food
products (flour, besan, suji etc) and poultry feed. It is therefore important to study the
reasons and factors restricting the growth of processing industry in the state.
It is in this context the study was commissioned by World Bank to study the maize
sector in Bihar with the following objectives
1.2 Objectives
The broad objective of the study is to assess the investment climate for processing of
maize (corn) into value added products in Bihar.
1. To assess and analyse the status of maize cultivation with respect to inputs,
harvesting and post harvesting practices and infrastructure (including storage,
warehousing etc)
2. To map major mandis and analyse price movements
3. To study the trade channels (marketing network) and value chain in maize
cultivation
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4. Study the status of maize processing in the state
5. To find potential of maize processing industry in the state,
6. To out line the regulatory/Policy guidelines of the government,
7. To identify the constraints with farmers, traders and processors.
8. Suggest measures for improving investment climate for maize processing in the
state.
1.3. Approach, Database and Methodology
The assignment involved collection and scanning of secondary data available about the
maize sector with a focus on status of maize processing industry in the state. It was felt
that benchmarking the sector in Bihar with other states would enable us identify the
constraints and draw best practice cases. Therefore information has also been collected
from Andhra Pradesh and Karnataka.
Primary data collection

Data was collected from both primary and secondary sources. The Primary data was
collected through a diagnostic survey of the farmers/growers, traders and maize
processors in the state in order to study existing cultivation and post harvesting
practices, storage systems, maize arrivals and price movements, marketing channels,
value chains etc and identifying the factors constraining the growth of the sector at
different levels of production and marketing.
A structured questionnaire was developed for data collection and collate the critical
information. The quantitative data was mainly collected by interviewing over 60
growers, 20 traders and all 10 processors operating in the state. The data on physical
infrastructure in mandis, monthly prices and corresponding arrivals, name and share of
the markets (local as well as outside state), etc has been collected directly from mandis.
All major mandis trading in maize i.e Gulabagh, Katihar, Mansi etc have been covered
by the survey for studying the trade channels and value chain mapping in maize
cultivation.
28
The diagnostic survey itself was carried out in two phases: qualitative and quantitative
surveys. The survey was carried out in the identified 4 districts of Bihar, namely
Begusarai, Khagaria, Purnea and Bhagalpur. Secondary data was used as the basis for
short-listing the target group for obtaining trade feedback and critical inputs from
various stakeholders including government agencies. The short listing was done on the
basis of following parametres:
Current area, production, productivity of all districts for maize production
Marketable surplus of maize in these districts
Linkages of production hubs to different consumption sources.
The ultimate objective of the survey was to come out with credible inputs and database
for the formulation of recommendations to improve the competitiveness of the sector.
Secondary Data Collection
The secondary database sources included published books, Reports of multi-lateral

bodies like World Bank, articles published in national and international journals,
magazines, newspapers, Reports of the various Government departments, consultancy
firms, research projects etc. It was used to study the status of maize production in world
with a focus on India and Bihar. This included data related to production, productivity
and area of the crop in India and Bihar, existence, role and relevance of concerned
institutions, policy framework etc. The data have been sourced from various sources
including government agencies including Department of Agriculture (DoA), and
Rajendra Agricultural University (RAU), Department of Industry, CGIAR (Maize
Regional Research Centre and Seed Production), Begusarai and Confederation of
Indian Industry (CII), Patna.
In addition to the above structured interviews, 4 Focussed Group Discussions (FGDs)

were held among farmers, commission agents, traders, processors, industry
associations, and research institutions to get the first hand information on the sector
with a primary focus on maize trading and processing.
29
The data and information have also been collected through interactions and in-depth
interviews with various stakeholders including Government departments like
Department of Agriculture (DoA), Industrial Development Commissioner (IDC),
Department of Fisheries, Research Institutions, bankers, trade and industry associations
etc.
Study Tools
As stated, separate structured questionnaires were developed for farmers/growers,

traders and processors in accordance with the objectives of the study. They were
pre-tested and later administered in the field. Similarly, guides for FGDs and in-
depth interviews were developed and finalized to get optimum results.
Field Operations and Data Management
In all, 4 field investigators and 2 supervisors were deployed for conducting the field
study. All of them have had prior experience in conducting such surveys. These
field officials administered the quantitative questionnaire among the target group.
The gaps and inconsistencies found in the filled - in questionnaires were rectified in
the field itself.
The information collected through field survey was tabulated and analysed. The issues
that emerged during FGDs and discussion with various stakeholders, including state
government officials, have also been captured in the Report.
30
Chapter 2 : Maize Production Global and National
Scenario
Maize (Zea mays) is the third most important crop after rice and wheat and is an
important staple food in many countries of the world. It is also known as the Miracle
Crop or Queen of Cereals due to its high productivity potential as compared to other
crops of Graminacea family. Besides, being extensively used as human food and animal
feed it is a source of a large number of diversified industrial products. Maize can be
processed to utilize any or all components to manufacture large number of end products
including corn starch, corn oil, baby corns, popcorns, alcoholic beverages, food
sweeteners and more recently, fuel have added to its demand thereby increasingly
making it a high value product.
Figure 2.1: Components of Maize
4% 4% 3%
10%
79%
Starch Protein Oil Fibre Minerals
Source: ICAR Annual Report
Maize is high yielding, easy to process, readily digested, and costs less than other
cereals. It is also a versatile crop, allowing it to grow across a range of agroecological
zones. Every part of the maize plant has economic value: the grain, leaves, stalk, tassel,
31
and cob can all be used to produce a large variety of food and nonfood products etc.
Generally following three types of corn is grown
Grain or field corn,

Sweet corn used mainly as food
Popcorn.
Maize in India is an important cereal. Its area and production have steadily increased
during the past two decades. Maize has varied usages from food preparation to poultry
feed. In India, it is mainly used in poultry feed manufacturing.
2.1. Trend in Global Production, Consumption and Trade in Maize
2.1.1. Status of Maize Production in the World
The area under cultivation and as well as the production of maize have been increasing
continuously over last decades. Though the acreage has increased consistently,
production pattern has been erratic owing to the variations in the yield. There are many
factors that have contributed towards changes in yield like weather during crop growth,
pest and disease attack, technological advances and development of new hybrids and
varieties etc.
Figure 2.2: World Area, Production and Yield (In Kgs/Ha) of Maize (2005)
32
800000 60000
700000
Area Harvested (in 000 hectares)

50000
Production (in 000 tonnes)

600000
40000
500000
400000 30000
300000
20000
200000
10000
100000
0 0
1990
1995
2000
2001
2002
2003
2004
2005
Year
Production Area harvested Yield per hectar
Source: Estimated from data downloaded from www.fao.org/es/esa/en/pubs_sofa.htm
According to USDA report, acreage under corn increased to 157.1 million hectares in
2007-08 from 148.11 million hectares during 2006-07. Accordingly the production
figure has also increased to 770.17 million tones from 704.28 million tonnes. This
increase has been mainly due to increased acreage coupled with favorable weather
conditions and use of high yielding hybrids. Major rise in production contributed from
Brazil due to congenial climatic conditions like adequate rain fall and low heat stress
during the growth period1.
Table 2.1: Area, Production and Yield of Major Maize Producing Countries in 2005
Production (Quantity in 000 Area Harvested (in Yield per Hectare
Country tonnes) 000 Ha) (kg/Ha)
United States of America 282311 30399 9287
China 139498 26380 5288
Brazil 35113 11549 3040
Argentina 20483 2783 7359
Mexico 18012 6606 2727
India 14172 7430 1907
France 13850 1655 8371
Indonesia 12014 3504 3428
South Africa 11716 3223 3635
Italy 10428 1113 9368
1 Karvy Comtrade Limited (2008) Seasonal Report on Maize
33
Romania 10389 2609 3982
Others 135270 45438 3902 (Average)
World 703255 142690 4016 (Average)
Source: Estimated from data downloaded from www.fao.org/es/esa/en/pubs_sofa.htm
The US has the largest harvested area of corn and contributes one fifth of the world
corn harvested area. China, Brazil, Mexico, India and Indonesia are the other countries,
which contribute significantly to the world harvested area. These six countries have
around 60% of the world corn harvested area. USA is the largest producer of maize in
the world accounting for about 40% of the global production. Other major maize
producers are China (20%), EU (14%), Brazil (5%) and India
The global average productivity of maize is around 4000 Kgs / hectare. Italy recorded
the highest yield of 9368 Kgs / ha followed by USA (9287 Kgs / ha), France (8371
Kgs / ha) and Argentina (7359 Kgs / ha). India at around 2000 Kgs /ha has the lowest
yield among major maize growing countries in the world.
2.1.2. Global Consumption Scenario
Globally, there has been continuous increase in the consumption demand of corn
mainly owing to increase in the demand from meat and starch sector. There is growing
requirement of maize from poultry sector, which use corn as feed. Consumption of corn
for both the purpose feed purpose as well human consumption purpose is increasing.
Major consuming of corn countries are USA and China with respective shares of 35%
and 19%. Other important consuming countries are EU-27 (8%), and Brazil (5.5%).
Indias share in total global consumption is accounted to only around 2%2.
2.1.3. International Trade in Maize

The global export market for corn presently stands at about 95 million tones. United
States with a share of 65% in total global exports is the largest exporter of corn in the
world followed by Argentina and Brazil with individual respective shares of 15% and
2 ibid.
34
11%. Other exporting countries are Paraguay, South Africa (each contributing 2%) and
India (1%)3 though their shares remain low.
As far as imports are concerned, Japan (17%), EU- 27 (11%) and Mexico (10%), Korea
(9%) and Egypt (6%) are the major importing countries of corn in the world.
respectively4.
Fig 2.3: Share in Global Exports (2007-08) Fig 2.4: Share in Global Imports (2007-08)
Paraguay
India
2%S. Africa Others J a pa n
Brazil 2% 1% 17%
4%
11% Ot he rs EU (27)
47% 11%
Argentina
15% USA Me xic o
65% 10%
Kore a
Egypt
9%
6%
Source: Karvy Comtrade Limited (2008) Seasonal Report on Maize
2.2. Trend in Production, Consumption and Trade in Maize in India
2.1. Maize Seasonality in India
It is a seasonal crop and can be harvested thrice in a year. In India, maize is grown in
all the seasons i.e., kharif (Monsoon), rabi (winter) and summer but it is essentially a
3 ibid.
4 ibid.
35
warm weather (kharif) crop as nearly 90% of the production is from kharif season and
is rain dependent. It is cultivated during winter (rabi) in Peninsular India and Bihar.
About 7-8% of the production is during rabi season, and the rest is from spring season
(summer maize) grown mainly in Northern India. It is usually grown as a pure crop but
is also grown as inter-crop with different crop combinations like sugarcane, cotton,
legumes, vegetables etc. Higher yields have been recorded in the rabi and spring crops.
The higher yields are primarily due to long crop duration, better water management and
lower incidence of disease and pests.
In most parts of India, maize during kharif is sown with the break of monsoon, the
actual dates varying from region to region. It is sown in early March in north-eastern
hills, in April to early May in north-western hills, in May-June in Peninsular India, in
the end of June to mid-July in the Indo-Gangetic Plains. The late sowing of maize may
extend up to late August in certain irrigated tracts of Punjab. Spring maize is sown in
late January to the end. Rabi maize is generally sown in Bihar, Andhra Pradesh, Tamil
Nadu and Karnataka in the end of October to mid-November. Both the spring and the
rabi crops are raised, more or less, under irrigation.
Fig 2.5: Seasonality Chart for Maize Arrivals in India
May June July Aug Sep Oct Nov Dec Jan Feb March April
Andhra Pradesh (K)
Andhra Pradesh (R)
Karnataka (K)
Karnataka (R)
Bihar (K)
Bihar (R)
Maharashtra (K)
Madhya Pradesh (K)
Uttar Pradesh (K)
Lean
Peak
Source: Discussions with traders
36
Maize can grow from sea level to 3000 metre altitudes under diverse conditions. Maize
does however, require considerable moisture and warmth from germination to
flowering. The ideal temperature for germination is 21 C and for growth 32C. 50-75
cms of well-distributed rainfall is conducive to growth. It can be successfully grown
where the night temperature does not go below 15.6oC (60oF). It cannot withstand frost
at any stage of its growth. In India, its cultivation extends from the hot arid plains of
Rajasthan and Gujarat to the wet hill of Assam and Bengal (receiving over 400 cm of
rainfall)5.
2.2.2. Maize in India Acreage, Production and Yield

India is the fifth largest producer of maize in the world contributing 2% of the global
production. Maize area, production and yield in India have seen a phenomenal growth
over the last five decades. The total area under maize in India expanded from 3 mn ha
in 1951 to 7.8 m ha in 2006, growing annually at an average rate of around 3%. In the
early 1970s, expansion in area under maize cultivation slowed dramatically but after
that for three decades the maize area remained virtually unchanged till 2000. The
acreage started to increase after 2001. The yield has also increased over the years but
continues to be very low as compared to other maize producing countries.
Figure 2.6: Maize Area, Production and Yield in India
16000 2500
14000
2000
Area and Production
12000
10000 1500
Yield
8000
6000 1000
4000
500
2000
0 0
1950-51
1960-61
1970-71
1980-81
1990-91
2000-01
2001-02
2002-03
2003-04
2004-05
2005-06
2006-07
Year
Area (in 000 Hectares) Production (in 000 Tonnes)

Yield (Kg per Hectare)
Source: Estimated from data downloaded from http://dacnet.nic.in/eands/
5 http://www.pnbkrishi.com/maize.htm
37
Rising yields, coupled with a steady expansion in area, led to growth in maize
production of 5.9% and 5.2% per annum in the 1950s and 1960s, respectively. After
slowing down in the 1970s as the area under cultivation stabilized, growth in maize
production, fueled by continuing improvements in yield, averaged about 2.6% per
annum in the 1980s and 3.2% per annum during 1990s. A significant shift occurred in
the 1990s when irrigated winter (rabi) maize cultivation expanded rapidly, particularly
in the states of Bihar, Andhra Pradesh and Karnataka. Total maize production exceeded
10 million tons in 1997-98. Production of corn in India has shown an increasing trend
consistently except the year 2002 when production showed a little decline due to
drought conditions in some of the states in India.
Though kharif maize dominates the acreage and thus the production, productivity is
highest for Rabi maize. The average yield of kharif maize is about 2 tonnes/hectare
while that of rabi maize is more than 3 tonnes /hectare. The average yield for spring
season is also around 3 tonnes per hectare. The higher yield during rabi and spring are
primarily due to (a) relatively mild climatic conditions rabi and spring seasons during
which the duration of the crop is longer resulting in sustained harvesting of solar energy
leading to higher recovery of grain and biomass; (b) larger coverage of hybrid seeds
having higher productivity. The states with favourable ecosystem specially Bihar (rabi)
are witnessing expansion of winter maize area. Almost 90% of the total hybrid seed
production of the country is confined to Andhra Pradesh and Karnataka in rabi season
due to seasonal and productivity advantages6.
Fig 2.7: Season Wise Area Under Cultivation Fig 2.8: Season Wise Production
Ra bi S umme r Ra bi S umme r
(8%) (2%) (11%) (3%)
( Kh a r i f ) Kh a r i f
90% (86%)
6 ICAR (2007) Vision - 2025
38
Fig 2.9: Season Wise Productivity (Kgs per Hectare)
3000
2500
2000
1500
1000
500
0
Kharif Rabi Summer
Source: ICAR (2007) Vision 2025
2.2.3. State Wise Production of Maize
Maize, like any other cereal is grown across all the states in India and in many states it
is one of the important staple foods. Indian maize production has traditionally been
concentrated in the southern Corn Belt states of Karnataka and Andhra Pradesh,
where it is grown during the kharif season. In recent years, introduction of cold-tolerant
varieties has led to the emergence of an irrigated rabi maize crop in the northern states
of Bihar and Uttar Pradesh.
Table 2.2: State-Wise Maize Area, Production and Yield during 2005-06
Area (in 000 % of Total Production (in ooo % of Total Yield (Kgs per
State Hectares) Area tonnes) Production Hectare)
Andhra Pradesh 760 10.01 3090 21.01 4073
Karnataka 940 12.38 2730 18.56 2915
Bihar 650 8.56 1360 9.25 2098
Madhya Pradesh 860 11.33 1250 8.50 1450
Rajasthan 1000 13.18 1100 7.48 1098
Uttar Pradesh 810 10.67 1050 7.14 1295
Maharashtra 470 6.19 1000 6.80 2106
Gujarat 500 6.59 560 3.81 1124
Himachal Pradesh 300 3.95 540 3.67 1839
Jammu & Kashmir 320 4.22 450 3.06 1413
Punjab 150 1.98 400 2.72 2723
Jharkhand 180 2.37 240 1.63 1315
Tamil Nadu 200 2.64 240 1.63 1189
West Bengal 50 0.66 130 0.88 2533
Others 400 5.27 570 3.87 @
All India 7590 100.00 14710 100.00 1938
Source: Estimated from data downloaded from http://dacnet.nic.in/eands/
39
Among the major producing states, Andhra Pradesh tops the list with the contribution
of over 20% to the total Indian maize production. Other producers are Karnataka
(18.6%), Bihar (9.2%), Madhya Pradesh (8.5%), Rajasthan (7.5%), Uttar Pradesh (7%),
and Maharashtra (6.8%).
The maize growing states can be divided into two groups
1. High Productivity States: Karnataka, Andhra Pradesh, Bihar (Rabi) Maharashtra,

Punjab and West Bengal account for about 30 percent
of the national maize acreage and their productivity
levels range from 2 4 tonnes per hectare.
2. Low Productivity States : Rajasthan, Madhya Pradesh, Gujarat, Uttar Pradesh,

Bihar (Kharif) which together cover about 50 percent of
the area have yields ranging 1 2 tonnes / hectare (i.e.
< 2 tonnes/hectare) which is lower than the national
average
2.2.4. Utilisation / Consumption Pattern of Maize in India
Diversified uses of maize have prompted higher production in India. Presently,

maize is mainly used for preparation of poultry feed and extraction of starch in the
country. In India both white and yellow both types of maize are grown. While white
maize in grown mostly for human food purpose, yellow maize is consumed primarily in
the manufacturing of poultry and animal feed. The maize consumption pattern in given
in the following graph.
Direct human consumption of maize has declined over time, while feed and
industrial uses have increased. A recent study by NCAP has shown that the per capita
human maize consumption which stands at around 3 kg per annum (average rural
3.89 kg per annum; and urban average 0.61 kg per annum) is declining at 2% per
annum due to greater availability of maize and rice at subsidized rates through Public
Distribution System (PDS). Rising household incomes have also shifted consumption
from maize to other cereals like rice and wheat. This has also led to an increased
consumption of meat, particularly of poultry, which has in turn increased the demand
for maize as feed. Increased industrial demand for maize comes primarily from the
40
starch and milling industry which in turn caters to textiles, paper, glue, alcohol,
confectionery, food processing, pharmaceutical industry etc7.
The utilization pattern indicated that about 28% of the maize produced in India
is consumed directly as food, 59% goes for poultry, fishery, piggery and livestock feed,
about 12% to milling and brewery industry (like starch, oil, and dry milling) and the
balance 1% for the seed. The utilization pattern of maize varies from state to state an
according to the size of the farm.
Fig 2.10: Mize Consumption Pattern in India
Seed
Starch Brewery 1%
11% 1% Food
28%
Animal Feed
Poultry Feed 11%
48%
Source: ICAR (2007) Vision 2025
Dry, shelled cobs are used as fuel. Green leaves and stems, from thinning the maize
crop, are used as animal fodder. Maize grain is often fed to dairy cattle, whose milk
yield is reported to increase by 20-25% if fed maize grain. Maize gives higher
conversion of dry substance to milk, meat, and eggs as compared to other cereals.
Maize grain is either fed directly to animals or is dried, milled, and mixed with other
ingredients. Other Industries (mainly starch, dextrose, corn syrup, corn oil, ethanol, etc)
also uses maize as their raw-material/input8.
7 Multi Commodity Exchange of India Ltd (2007) Maize Futures: Feasibility Study and ICAR
Vision 2025 Document
8 http://www.pnbkrishi.com/maize.htm
41
2.2.5. Indias International trade in Maize
The production in 2007 was estimated at around 138 lakh tonnes. India was exporting
maize to the world and the exports also increased during 2000-2005. It declined in 2003
due to fall in production. Exports increased again in subsequent years of 2004 and 2005
but declined again in 2006. This time the decline was due to imposition of certain
restrictions on maize exports from India.
Imports of maize into India has significantly declined since 2000 and according to
CMIE, India imported 1.6 million MT of maize valued at Rs 30.7 million in 2006.
However, imports have been witnessing a rising trend in since 2003 onwards.
Graph 2.11: Indias Exports and Imports of Maize

During 2000 2006
Import & Export (In Lakh MT)
8000
7276
7000
6000
5000
3993
4000 4163
3000
1770
2000 2 975 688
296
1000
289 43 7 12 16
0 1
2000 2001 2002 2003 2004 2005 2006
Year
Imports Export
Source: CMIE database
Maize is an important crop in India. Besides being used for human consumption, it is a
key ingredient of poultry and livestock feeds. The poultry industry in India is rapidly
increasing. The countrys requirement for poultry feed is increasing at over 10 % per
annum. Its demand for industrial uses is expected to increase. The maize sector has lot
of potential for growth.
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Chapter 3: Policy and Institutional Framework for
Maize Sector in Bihar
This chapter will map the institutional framework and the policies/programmes relating
to maize sector in Bihar. The presence and role of major institutions and associations
that are associated directly or indirectly with maize have been discussed.
3.1. Institutions in Maize Sector in Bihar
Following institutions are working in Bihar on maize sector.
1. Bihar Veterinary College, Patna - This College helps the farmers & the
industries, related to poultry & dairy sector. It also does technology transfer
(Lab to Land program) through its respective Krishi Vigyan Kendras (KVKs).
Poultry in Bihar is not a great success story due to socio-economic constrains,
but dairy is a success.
2. College of Agricultural Engineering, Samastipur, Rajendra Agricultural

University, Pusa, Samastipur - This institute is primarily responsible for the
irrigation aspects of maize in Bihar. Good work is being done on spring maize.
The exponential increment in the quality & quantity of spring maize yields in
the last half a decade is the proof of it.
3. College of Fisheries, Dholi & College of Fisheries, Tirhut , College of

Agriculture (TCA) campus, Muzaffarpur Pusa Road, Doli, Muzaffarpur
Though traditionally a fish eating state, these two colleges has not been
exploited by the fishermen & government to make fisheries an industry. This is
evident from the fact quoted by Deputy Director Fisheries, Department of
Fisheries, GoB, who had an interview with World Bank & IL&FS-CDI that
presently 25% of the water bodies are being utilized with a capture fishing
process not the culture fishing process. The state imports 20% of its
requirement from West Bengal & Andhra Pradesh. At present, the total fish
requirement in Bihar is 2 lakh tons per year with an average yield of 3-5 t per ha
per year. There are no fish feed unit in Bihar. According to a recent research
43
carried out in the Institute, fish feed should contain about 45% of maize for
better fish production per year. Presently the fishermen are using cow-dung &
organic manures to grow phytons for the fish while they use mustard cake with
rice bran cake, mixed in molasses to directly feed the fish. This feed is works
out to be cheaper than maize as in the fish producing districts of Bihar, maize is
not adequately produced/available. These flood prone fish producing districts
mostly grow paddy in kharif followed by mustard in Rabi. GoB is planning to
double its fish volume by 2013, by bringing in additional 20000 ha under fish
culture to make it a total of 50000 ha of area under fish culture. The output will
also be increased from 3 tons to 5 tons fish per ha per year. To make this happen
by 2013, about 2.58 lakh tons of fish feed is required which would have over
one lakh tons of maize in it.
These two colleges are now consulting Central Institute of Fresh Water
Aquaculture (CIFWA), Bhubneshwar to make fish feed units in Bihar. A
proposal is with GoB submitted by the department that 25% subsidy with a cap
of Rs.12 lakh will be given to fisheries graduate for setting up a new fish feed
unit. To make these feed units viable Rs.20000/- per acre of pond will be given
to energize it. This one acre can hold 1 lakh fingerlings which can be sold @5
paise per fingerlings. Feeding the fish from these feed units can produce 1kg of
Katla (local freshwater fish variety), @ Rs.50 per kg, in a year from the
fingerlings. The proposal looks to be viable but requires initiatives from
fishermen & fisheries graduate.
4. Rajendra Agricultural University, Faculty Of Agriculture, P O Pusa,

Samastipur - Established on 3rd December 1974, it has a mandate for overall
development of the maize sector. This institute has done good work in the initial
stages till 1979 for white corn. Presently it has a full-fledged maize research
team with the Maize Coordinator as head. It produces small quantity of seed for
Bihar Beej Nigam, but the volumes are decreasing as the seed sector is
dominated by the private players. The university is helping GoB in drafting the
Bihar Road Map for Agriculture with the following highlights on maize:
44
DoA will soon bring out a MAIZE MISSION for Bihar. The highlights of it will
be as follows
1) Growing maize in flood prone areas.
2) Setting up 12 godowns in all the maize growing districts
3) Setting up of rural godowns in 216 blocks of each 250 MT.
4) Target production by 2012 to be 3 million MT per annum from 1 million

hectare with yield of 3t/ha
Seed production will be private companies' domain
Immediate investment in farm mechanization and rural warehousing.

Warehousing will cost Rs.2.5 million for 1000 MT.
With the joint effort of this university and Directorate of Maize Research (DMR),
Begusarai some good Quality Protein Maize (QPM) has been released. GoB is
promoting QPM as mid-day meal in all government schools. To make this happen,
the university is helping the processors like Katyani Makka Udayog, to set up a unit
in Khagaria. The World Bank & IL&FS-CDI, has visited this processing unit at
Chautham in Khagaria district. This unit is temporarily closed due to financial
issues. One of the best cases of technology transfer by the university can be
observed as given below:
45
Source: www.rwc.cgiar.org/RSCRTCC/2005/Sessions
5. Sanjay Gandhi Institute of Dairy Science and Tech., Pusa, Samastipur &
Sanjay Gandhi Institute of Dairy Technology, Patna, Rajendra
Agricultural University, P O Dhelwan, Lohiyanagar, Patna These two
institutes have done a commendable job creating an oldest (25 years old) single
most success story of Bihar, i.e., Bihar State. Cooperative Milk Producers
Federations Limited (COMPFED). As per interview conducted by World Bank
and IL&FS-CDI with the General Manager, Operations, COMPFED, will be
doubling its capacity to 200t/day of cattle feed in the next four years with 16%
growth per annum. COMPFED procures 60-70% of its maize requirement from
Bihar. COMPFED prepares the following animal feeds with different maize
compositions:
46
Type of Animal feed Maize content
Adult cattle feed 08-12%
Milking cow feed 15%
Poultry feed 50-60%
Pig feed 25-30%
Source: COMPFED, Patna
The irony here is that cattle & cow feed is picking up but not poultry & piggery.
COMPFED has more than 99% business in cattle & cow feed. It does some
poultry & pig feed production for the government like military farms, Central
dairy farms etc.
The two institutes have done some good research work on maize as cattle feed.
In collaboration with National Dairy Research Institute (NDRI), Karnal.
6. Directorate of Maize Research (DMR) Regional Research and Seed

Production Centre, Kushmahout, Bishnupuri, Begusarai - Consultative
Group on International Agricultural Research (CGIAR) (www.cgiar.org),
Begusarai, was established on 4th May, 1997 exclusively for maize as a
Regional Research & Seed Production Centre, has no mandate for industrial
research. This institute is one of the best resources for all the private seed
companies. Exchange of parent seed & endorsement of hybrids, do happen un-
officially, boosting the private seed companies to produce the best performing
hybrids for Bihar Rabi.
7. Krishi Vigyan Kendras (KVK) All the 16 KVKs in Bihar are governed by
different organizations like Indian Council of Agricultural Research (ICAR),
State Agriculture University (SAU), Non-Government Organizations (NGO)
and state Govt., Central/State Public undertaking, Educational Institutions
including Central Universities. KVK at Begusarai is the only one which has the
main mandate for maize. Remaining KVKs indirectly help the maize farmers &
processors like distribution of mid-day meals in primary schools, health
awareness among the fishermen cooperatives, increasing the milk production &
for a particular down trodden community, to increase the piggery sector.
47
Table 3.1: Details of KVKs Operating in Bihar
S.N. Name & Address of KVK Host Organization Est. Year &
governed by
1. Training Organizer, Vice- Chancellor, 1979

Krishi Vigyan Kendra, Rajendra Agriculture University, S
P.O. Sankarpur, Munger - 811201 Samastipur-848125 (Bihar)
(Bihar)
2. Training Organizer, -do- 1996

Krishi Vigyan Kendra, Darbhanga S
(Bihar)

Krishi Vigyan Kendra, S
Hajipur Farm, Vaisali (Bihar)

Krishi Vigyan Kendra, P.O. S
Meghaul, Khodawanpur, Begusarai
(Bihar)

Agwanpur, Saharsa (Bihar)

P.O. Harnaut, Nalanda (Bihar)

Krishi Vigyan Kendra, P.O. Vijay S
nagar,
Banka -813101 (Bihar)
8. Chief Training Organizer, -do- 1992

Barh, Patna (Bihar)

Sekhupura (Bihar)

Saraiah Farm, Muzaffarpur (Bihar)
11. Training Organizer, Chairman, 1993

Krishi Vigyan Kendra, Sone Command Area O
SCADA P.O. Arra, Deve.Agency,
Bhojpur -802301 (Bihar) Sone Bhavan, Patna (Bihar)

Krishi Vigyan Kendra, O
Jahanabad (Bihar)
48
13. Training Organizer, General Secretary, 1979
Krishi Vigyan Kendra, Gram Nirman Mandal Ashram, N
P.O. Sokhodeora, Nawada -805106 Sokhodera, Nawada -805106
(Bihar) (Bihar)
14. Training Organizer, President, 1992

Krishi Vigyan Kendra, Banavasi Seva Kendra, Adhaura, N
Vanavasi Seva Kendra, Bhabhua - 821116 (Bihar)
P.O. Adhaura, Bhabua 821116

Krishi Vigyan Kendra, Sharma Khadi Gramydog Sangh, N
Bharti Khadigram, Khadigram, Jamui -811313
Khadigram, P.O.Jamui - 811313

Krishi Vigyan Kendra, VPO S.K.Choudhary Edn. Trust, New N
Basaith,Chandpura, Madhubani- Delhi
847102 (Bihar)
Notes: I ICAR; S SAUs; N NGOs; O -Others, includes state Govt., Central/State Public
undertaking, Educational Institutions including Central Universities
Source: http://dare.nic.in/KVKList.htm
3.2. Policy Incentives for Maize Sector in Bihar
On the policy front, DoA is providing lot of policy support for the development of
maize sector in the state. The Institutional Reforms (2006-07) are
Establishment of Soil Testing Laboratories in every district (16 new

laboratories added during 2006-07). All the maize producing districts have
now a laboratory.
Establishment of State Pesticide Testing Laboratory at Patna for Sanitary

and Phyto Sanitary certification
Mechanization: 25% additional subsidy from State plan for 2007-08.
DoA has allowed Leading commodity bourse NCDEX to launch the

country's first spot exchange in Bihar in September-end 2007 with trading in
maize contracts. The NCDEX-promoted spot exchange, initially trading in
maize -- a major crop in Bihar. Since agriculture is a state subject, an
electronic spot exchange cannot be launched at the national level. For any
spot exchange to get a presence in all states, it has to ask permission from
49
each state separately. The sellers would be from Bihar but buyers could be
from anywhere in the country. Traders functioning in futures market can
also buy from the spot market. (Source: Fifth Column in KOILAKH NEWS
on August 27, 2007 3:39:00 PM & DoA)
On seed, DoA is still following the National Seeds Policy, 2002 9. The
present government under the initiative for development of agriculture in
state of Bihar has formulated a Bihar Seed Plan, mainly comprising of
1. Revival of Bihar State Seed Corporation
2. Revival of State Seed Farms
3. Establishment of Seed Testing Laboratory at district, subdivision, and

block levels subsequently.
4. To promote the use of hybrid maize seeds during kharif up to 50 percent.
5. Development of very short duration seed banks in flood prone areas.
Bihar Government has started working on Bihar Seed Plan, but substantial progress
is yet to be made in this direction.
In addition to above, DoA is also planning for
Implementation of Vaidyanathan Committee Report on Cooperative Credit.
Krishak Salahkar (Agri-consultants) as para extension service providers to

farmers in all Panchayats
Department of Industries has not yet taken any concrete steps exclusively for
development of maize processing sector in Bihar. The policy remains the same which is
in general for all the industries.
9 Source: www. indian seed act 2002_files
50
Chapter 4: Status of Maize Production in Bihar
Bihar is the 8th populous state in India and depends primarily on agriculture. It produces
a variety of crops like maize, sugarcane, potato, jute and many other vegetables and
fruits due to its soil fertility and climatic conditions. The geographical location and
climatic condition of eastern part of Bihar namely Purnea, Katihar, Samsatipur,
Saharasa districts are favourable for cultivation of maize. Maize is thus an important
crop in Bihar which is third largest producer of maize in the country after Andhra
Pradesh and Karnataka and accounts for about 10% of national maize output.
Cultivation of maize provides livelihood to about 1.3 million farmers in Bihar, majority
of whom are marginal and small farmers. According to the figures of 2005 06, Bihar
produced 1.7 million tonnes of maize valued at Rs. 10.6 billion (at MSP of Rs.
620/qntl).
Table 4.1: Number of Farmers Involved in Maize Cultivation in 2005-06 in Bihar

Season Bihar maize area (lakh ha) Number of farmers attached
Kharif 1.623 312115
Rabi 3.598 691923
Summer 1.613 310192
4.1. Production, Acreage and Yield of Maize in Bihar
Bihar is a traditional maize growing state and the crop was grown primarily as a
subsistence crop to meet food needs for a long time till recently. But now like in non-
traditional areas (Karnataka and Andhra Pradesh), it is also grown for commercial
purposes (i.e., mainly to meet the feed requirements of the animal feed sector). It is
third largest maize producing state contributing around 10 percent to national
production. Around 0.65 million hectare is presently under maize cultivation, which is
about 7 per cent of Gross Cropped Area (GCA) in the state and over 13 lakh farmers
engaged in maize cultivation.
51
Figure 4.1: Maize in Bihar Acreage, Production and Yield
3000
2500
2000
1500
1000
500
0
1999- 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06
2000
Area (in 000 Hectares) Production (in 000 MT)

Yield (Kg per Hectare)
Source: Department of Agriculture, Government of Bihar
During 2005-06, the state produced about 1.4 million MT, which is about 5 per
cent of the total crop production. Though yield in Bihar is higher than the national
average, it has come down between 2000-01 and 2005-06 indicating a decline in the
productivity levels in maize cultivation in Bihar. The total production of maize for the
last seven years in Bihar is presented in Appendix table.
Table 4.2: Cropwise Cultivation of Maize in Bihar

Year 2004-05 2005-06 2006-07 (Estimates)
Crop
Area Prodn. Yield Area Prodn. Yield Area Prodn. Yield
Autumn 0.270 0.443 1638 0.276 0.456 1647 0.259 0.397 1532
Maize
Rabi Maize 0.195 0.592 3039 0.208 0.551 2641 0.382 1.31 3444
Summer 0.160 0.454 2827 0.163 0.389 2386 - - -
(Spring)
Maize
Total 0.626 1.49 2379 0.649 1.39 2153 0.641 1.71 2671
Area in Million Hectares; Production in Million Tonnes ; Yield in Kgs/Hectare
Source: Department of Agriculture, Government of Bihar
52
Fig 4.2: Agricultural Map of Bihar
4.2. Status of Maize Cultivation in Bihar
4.2.1. Size of Farm Land Holdings
Maize is mainly grown by small and marginal farmers in Bihar. The

fragmentation of land holdings is much more pronounced in Bihar than other states as
the average per capita operational holding in the state was 0.75 hectares in 1995-96
much below the national average and nearly one quarter of the size of Punjab. About
one-third of the operational holdings are marginal (less than one hectare) in which the
average size is merely 0.34 hectare. This explains the largely unorganised nature of
maize cultivation in the state where about 91% of the cropped area is dissected into
53
plots less than 2 hectares each. It also leads to the inference that due to the small land
size the farmers find it unviable to invest in better harvesting technologies, seeds etc.,
thereby leading to a comparatively lower yield per hectare. The low yield limits their
incomes and this again in turn leads to poor investment capacities. This vicious cycle of
limited capacity to invest and thus the ensuing low returns has largely hampered the
growth of the sector in the state. The category wise farmers and their operated area are
indicated in the following table.
Table 4.3: Size Class-wise Number and Area of Operational Holdings in Bihar
(1995-1996)
Total Holdings
Size Class (In Number Area ('000 Average Area per

Hectare) ('000) Percentage Hectares) Percentage Holding (Hectares)
Below 0.5 8422 59.51 1752 16.4 0.21
0.5 - 1.0 2922 20.64 2119 19.84 0.73
Marginal 11344 80.15 3871 36.25 0.34
1.0 - 2.0 1526 10.78 2018 18.89 1.32
Small 1526 10.78 2018 18.89 1.32
2.0 - 3.0 640 4.52 1534 14.36 2.4
3.0 - 4.0 301 2.13 1031 9.66 3.43
Semi- Medium 941 6.65 2565 24.01 2.73
4.0 - 5.0 170 1.2 750 7.01 4.42
5.00 - 7.50 99 0.7 597 5.59 6
7.50 - 10.0 45 0.32 402 3.76 9
Medium 314 2.22 1749 16.37 5.57
10.0 - 20.0 24 0.17 336 3.15 13.84
20.0 and Above 5 0.03 143 1.34 29.49
Large 29 0.2 479 4.48 16.45
All Sizes 14155 100 10682 100 0.75
Source: Directorate of Statistics and Evaluation, Govt. of Bihar.
Although the state has a very low amount of land per capita, in some parts of the state
there are still significant numbers of landholders having large amount of land leased in
their possession, in violation of the ceiling law. Most of such landholders are absentees
and consequently the state reports one of the largest land area under tenancy in the
country, although a significant amount of land leased out is also by small and petty
landholders engaged in a variety of occupations outside the village. According to the
NSS survey in 1980-81 the proportion of cultivated land under tenancy was about 10
54
percent. Thus farmers have limited interest and capacity to invest in farm land fertility
etc.
Maize is grown throughout the year in Bihar all three seasonal crops of maize are
cultivated; however, main crop is Rabi maize. Winter (Rabi) maize is the USP of the
state that dominates total maize production in the state with a 40 percent share.
Monsoon (Kharif) maize and Summer maize each contributes about 23 percent to the
total maize area.
Maize is grown in almost all the districts of Bihar. The leading district is Khagaria,
which accounts for about 12 per cent of maize production in the state. Other important
maize producing districts include Begusarai, Madhepura, Saharsa, Purnea, Katihar,
Muzaffarpur, Vaishali, and Samstipur. As maize is grown in most of the districts of the
state, there is not much movement of the grains within the state. Entire stretch form
Begusarai to Khagaria on the north side of national highway, having highly fertile land
of Gangetic plains provides very favourable soil for maize cultivation. The acreage,
production and yield of major maize (Rabi, Kharif and Summer) growing districts in
Bihar during 2006-07 is indicated in the following table
Table 4.4: Area and Production of Summer Maize (Gamma) in Major Districts in Bihar
During 2006-07
S. No Name of Districts Area (ha.) % Share Prod. (M.T.) % Share
1 Purnea 17774 10.12 86824 14.14
2 Katihar 14890 8.48 71515 11.65
3 Madhepura 19483 11.09 57051 9.29
4 Saharsa 15999 9.11 53394 8.69
5 Sapaul 9634 5.49 45808 7.46
6 Araria 8099 4.61 38893 6.33
7 Bhagalpur 7788 4.43 26655 4.34
8 Khagaria 7509 4.28 25139 4.09
9 Vaishali 10902 6.21 23682 3.86
10 Muzaffarpur 10963 6.24 22255 3.62
11 Samastipur 5147 2.93 22237 3.62
12 Others 47449 27.02 140631 22.90
Total 175637 100.00 614084 100.00
Source: Directorate of Statistics and Evaluation, Government of Bihar
Around one-fourth of land under maize cultivation in Bihar is for summer maize which
contributes about 28% of total maize produced in the state. The yield is also very high.
55
It is mainly grown in the districts pf Purnea, Katihar, Madhepura, Saharsa, and Supaul.
These together account for 45% of acreage and 50% of production of summer maize in
the state.
Table 4.5: Area and Production of Kharif in Major Districts in Bihar During 2006-07
Sl. No. Name of Districts Area (ha.) % Share Prod. (M.T.) % Share
1 Begusarai 42678 16.45 51721 13.01
2 Purnea 13795 5.32 38097 9.58
3 Bhagalpur 25812 9.95 35553 8.94
4 Saran 17974 6.93 26446 6.65
5 Vaishali 15801 6.09 23768 5.98
6 Araria 8602 3.31 21676 5.45
7 Katihar 10681 4.12 21259 5.35
8 Samastipur 14158 5.46 20932 5.26
9 Khagaria 14828 5.71 17810 4.48
10 Siwan 12011 4.63 17300 4.35
11 Patna 7569 2.92 14350 3.61
12 Others 75585 29.13 108679 27.33
Total 259494 100 397591 100
Kharif is mailnly grown in the districts of Begusarai, Purnea. Bhagalpur, Saran and
Vaishali. These five districts together account for about 45% of acreage and production
of kharif maize in the state.
Table 4.6: Area and Production of Rabi Maize in Major Districts in Bihar During 2006-07
Sl. No. Name of Districts Area (ha.) % Share Prod. (M.T.) % Share
1 Khagaria 32400 15.71 181926 24.44
2 Samastipur 25263 12.25 118660 15.94
3 Begusarai 17164 8.32 68175 9.16
4 Katihar 15519 7.53 48931 6.57
5 Madhepura 16579 8.04 47946 6.44
6 Saharsa 10485 5.09 45390 6.10
7 Bhagalpur 10838 5.26 42691 5.74
8 Purnia 11399 5.53 25750 3.46
9 Muzaffarpur 8549 4.15 22484 3.02
10 Darbhanga 7871 3.82 22424 3.01
11 Vaishali 7459 3.62 22347 3.00
12 Others 42658 20.69 97550 13.11
Total 206184 100.00 744274 100.00
56
As far as Rabi maize is concerned Khagaria alone accounts for about one-fourth
of total production in the state. Samastipur, Begusarai and Katihar are other important
districts for maize production. These 4 districts together contribute 44% to acreage and
56% of total rabi maize produced in the state.
4.2.2. Cropping Pattern
There are two distinct maize cropping patterns in Bihar. In the flood prone areas
of Khagaria, Saharsa (Kosi) and parts of Samastipur maize is being cultivated during
rabi. In these districts sowing starts in October (after flood water recedes) and continues
up to early January. The majority of the sowing is done during December. Maize
harvest starts towards the end of February and continues till the end of June. Majority
of the crop is harvested during the months of May and June. In these parts of Bihar
maize is the major and in some cases the only crop.
In Begusarai and Samastipur, maize is cultivated during both seasons Rabi and
Khariff. The sowing, during the khariff season, starts during the month of June and
continues up to July. The harvesting starts around the month of September and last up
to October. The sowing and harvesting during rabi follow the similar pattern as
observed in other places. The seasonality chart is given below:
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Khariff
Rabi
Since most of the maize cultivation is concentrated in the districts of Khagaria, Saharsa,
Katihar and Purnea where it is grown only in Rabi, it can be concluded that the
proportion of Rabi maize (including both winter and spring) in the total maize
production of Bihar can be up to 80%. This was also corroborated during discussions
with farmer groups.
57
Figure 4.2 : Major Maize Growing Districts in Bihar
Note: In kharif maize is scattered through-out Bihar as it is a rainfed crop. Map for
kharif is not being captured by the satellite as the cropping density is below
100ha, hence no data is available.
Source: CGIAR
4.2.3. Practices in Maize cultivation in Bihar
Following maize cultivation practices were observed in Bihar.
Land Preparation The first step in maize cultivation is ploughing. Farmers

use tractors to deep plough the land. Normally ploughing is done thrice to break
down the soil. During ploughing, 50 Kg of DAP, 50 Kg of Urea and 25 Kg of
Potash is used alongwith some organic manure.
At field level, there is very limited use of bio-techniques to protect the fertility
of land for future crops. Chemical fertilizer is used to enhance the productivity,
but in long-run, it affects the fertility of land.
Sowing Farmers on an average use around 11 Kg of seeds per acre, which is

about 20% higher than the average seed requirement. The seed requirement is
58
higher because of lower germination rate and high incidence of plant mortality.
Line sowing was observed in most of the places.
Weeding Normally weeding is done only once by the farmers when the
plant is 3-4 weeks old. Approximately 10 labours are used per acre to carry out
the process of weeding.
Irrigation Normally the crop is irrigated 3 times but the number of

irrigations can vary between 2-6 times depending upon the climate. Normally
flood irrigation is applied to the crop. Use of sprinklers and/or drift irrigation
was not observed in the study area.
Diesel motors attached to bore-wells are used to irrigate the crop. The cost of
one time irrigation per acre is between Rs.400-Rs500.
The cultivation practices in Bihar when compared to that of Andhra Pradesh suffers
from following deficiencies.
Parameter Practices in Andhra Practices in Bihar

Effect
Seed Use 7 kg/acre 11 kg/acre Higher cost of
cultivation
Thinning Within 10 days Thinning is done at Lesser growth of
the time of weeding plants resulting in
only lower productivity
Spacing 75 cm (3-1/2) between No standard spacing Lower
rows and 20cm (8") was observed productivity
between plants or 60cm
(2) between rows and
25cm (10") between
plants
Fertilizer 120 Kg of Nitrogen 250 Kg of Urea Higher cost of
production
50 kg of Zinc sulphate 100 Kg of DAP
Absence of
2 kg of Zinc balance nutrients
for plant
Source: Field study by IL&FS CDI
However, the negative effects are getting neutralized due to higher soil fertility. But
with better cultivation practices this yield can be improved further.
59
4.2.4. Cost of Cultivation
The average cost of maize cultivation in Bihar is around Rs 900 per acre. Inputs like
seeds, fertilizers and constitute about 25% of the total cost. The rabi crop on an
average is irrigated 6 times during a season. The irrigation cost contributes another 25%
to the total cost of cultivation. The hiring charges of machinery (tractors, threshers etc)
and labour for ploughing, planking, sowing, weeding and harvesting comes out to
around Rs 4000 per acre. Details of the cost of cultivation and revenue per acre of land
is given in the annexure table given at the end of the chapter
Table 4.7: Cost of Maize Cultivation

Cost (In Rs per
S.No Cost Components and Returns (Details) Acre)
1 Land Preparation (Planking, sowing, fertilizer application etc) 810
2 Seeds (10 Kgs per acre @ Rs 120 per Kg) 1200
Fertilizers 1486
(a ) Basal NPK (66 kgs @ Rs 10) 660
(b) Basal MOP (22 Kgs @ Rs 5.5 121
Basal AS (22 Kgs @ Rs 7.75) 170.5
(d) 2nd Dose Urea (55 Kgs @ Rs 5.4) 297
3 (e) 3rd Dose Urea (44 Kgs @ Rs 5.4) 237.6
4 Pesticides (lumpsum) 500
5 Labour / machinery 3955
6 Irrigation 2700
7 Transportation (2 Trolleys @ Rs. 200/trolly) 400
Total Cost 11051.1
Return
1 Harvest of Grains (for 28 quintals / acre @ Rs 500* 14000
2 Harvest of Cobs (lumpsum) 500
3 Harvest of biomass (used as fodder & fuel) (lumpsum) 2000
Total Return 16500
Net Profit (not including the lease rent of 1 acre of land)
Only from harvest of Grains (Rs / Acre) 2948.9
If included cobs and biomass (Rs/Acre) 5448.9
Notes : * Farm gate prices during peak season
Source : IL&FS CDI Field Survey
4.3. Post Harvesting Practices and Infrastructure
The harvesting is generally done manually in the open field. Seeds are being extracted
using threshers. However, in some cases farmers are not extracting seeds immediately
after the harvest. Here they are simply storing the cobs. The important post-
production/post-harvest operations for maize are drying, grain (and seed) storage,
60
shelling, and milling. After extraction seeds are being sun-dried (on house roofs, flat
cement floors or roads, drying baskets, or plastic sheets because mechanical dryers are
not available in the villages) to reduce the moisture contents10. Normally the seeds are
being dried for about 15 days before packing is done. After drying seeds are packed in
gunny bags and stored in sheds, storage barns, or plastic sacks at home which suffer
risk of damage due to pests and aflatoxin which makes it unsuitable to be used as raw
material for starch production. Only few farmers use fumigants like celphos to protect
the corn from grain-pest.
It is estimated that about 20-25% of the maize production is lost due to use of old and
obsolete post harvest machines and processes, open drying on floors inadequate
warehousing and grain store/bins, poor packing practices, and lack of collective
transportation facilities etc. The production loss due to poor post harvesting practices
and infrastructure affects the marketable surplus and thus the price and availability of
grain thus affecting the entire value chain in the state.
4.4. Storage and Warehousing
Most of the maize cultivators are small and medium farmers, so their grain retention
capacity is low (these farmers cant wait for higher prices of maize to sell their grains).
They sell most of their grains soon after harvesting to meet their essential expenses. In
maize belt of Khagaria and adjoining districts, which are flood prone, farmers sell their
grains otherwise it would be spoiled by flood water. Farmers have very limited in-
house capacity (2-10 quintals) to store their maize grains. These grains are stored in
gunny bags or wooden & earthen drum sort of pot having limited storage capacity.
Some pesticides are used to protect these grains during storage. No mass scale storage
facility is available, either in private sector or public sector. Only Gulab Bag mandi has
storage capacity of 12000-15000 MT. It has about 15 godowns each having a capacity
to store 750-1000 MT of maize. Existence of facilities of Central Ware Housing
10
Shelling of maize is mostly done through mechanical shellers. Normally, big farmers own these
machines and smaller ones use it on hire basis. However, there is a provision for subsidy on purchase of
shelling machines, but only a limited number of farmers can avail benefit of this scheme due to various
factors like higher price of machine, non-transparent procedure of getting these subsidies, scheme
available for a fixed pre-determined number of machines, etc.
61
Corporation or Bihar State Ware Housing Corporation is practically negligible in
maize producing areas. Lack of storage facility, prevent farmers from exploiting the
opportunity of good prices for their maize. It also leads to mass-transshipments of
maize grain by the traders .
4.5 Prices and Procurement
Basic staples in India including maize continue to be subjected to Minimum Support

Price (MSP) guarantees with the objective of ensuring remunerative prices to the
farmers, even out effects of seasonality, and promote agricultural diversification
although the guaranteed prices can be at times below prices prevailing in markets.
Though there is provision for MSP for maize grains, but at present there is no
procurement by the State agencies. Corn procurement by the government agency is
very rare (like once in five years) and that too in scanty volumes (707 MT in 2003-04)
which was just 0.2% of the total maize procurement in the country. It clearly indicates
poor procurement structure in the state (Refer to Annexure table).
In absence of any procurement by the state agencies, maize is sold in the open market
at the market prices (determined by the demand and supply forces). Prices of maize in
different grain markets of Bihar varies between Rs.500-Rs.700 per quintal, depending
upon the quality of grain (yellow flint grain is most preferred) and season from point of
view of grain trading (peak season April to June; and lean season December to
March). Minimum support prices act as a benchmark for open-market prices.
Table 4.8: Minimum Support Price for Maize (Rs./quintal)

2003-04 2004-05 2005-06 2006-07 2007-08
505 525 540 540 620
Source: Commission for Agricultural Costs and Pricing, Govt. of India
The prices in Gulab bag mandi during this year are as follows
62
Figure 4.3: Trend in Maize Prices and Arrivals at Gulabagh Mandi, Purnea
During 2007-08 (Prices in Rs. per Quintal and Arrivals in 000 MT))
900
800
Prices (in Rs/Quintal) 700
600
500
400
300
200
100
0
Aug
June
April
Nov
July
Sept
Oct
Dec
Feb
Jan
May
Months
Market Price MSP Arrivals (Qnty in 000 MT)
Source: IL&FS CDI Field Survey
At present level of production and marketable surplus, absence of procurement by the

government agencies is not creating problems in terms of lack of demand for maize
grain, but it certainly slow down the upward movement of prices and hence lower
returns to farmers.
4.6. Credit Delivery Mechanism
Informal credit delivery system plays a very important role in meeting the credit needs
of the maize cultivators and even processors. Local wholesaler/trader gives credit
support to maize farmers for meeting their consumption and production needs and
hence farmers are obliged to sell maize to them. It was observed during field survey
that maize farmers in the district of Khagaria on an average take loan of Rs 6000-8000
per acre from the traders/moneylenders to meet their working capital requirement i.e.
input cost (seeds, fertilizer and pesticide etc), labour etc. Besides this, traders also
support farmers to meet their incidental expenses like medical treatment, marriage,
death etc. The prevalent monthly interest rate for informal credit in the selected districts
if found to be approximately 5 10% per month.
63
After harvesting, farmers sell maize to the moneylenders (wholesalers/traders) and loan
is settled against the value of the produce. Because of high interest rate and credit
linked product transactions, maize farmers are trapped in vicious cycle of debt and
poverty.
4.7. Marketing Channel and Infrastructure
Agricultural marketing includes the movement of agricultural produce from farms

where it is produced to consumers or processors. There is free market for maize in the
state but marketing network and infrastructure remains a weak link. Maize sector is
highly unorganized with many intermediaries and farmers depend on the local village
aggregator/trader who plays an important role in procurement and marketing of the
produce. There are also some rural primary markets. Broadly two marketing channels
in maize were observed:
1. Farmer Wholesaler
2. Farmer Village Aggregator / trader Wholesaler

Feed/Starch industry Retailer Consumer
Typically, after harvest maize grains are brought to mandis (like Gulab Bag mandi in
Purnea, Khagaria etc.) by village aggregator (adhatiyas) for selling. Trade process at all
other places comprises of village level aggregation at multiple locations and then its
direct transportation to rake loading points like Khagaria etc. or is even directly sent to
customers destination.
These mandis lack basic infrastructural facilities like platform for drying grains, pest-
free storage godowns, machines for weighing/sorting, public utilities, etc. Only Gulab
bag mandi in Purnea has facility to store maize to the tune of 12000-15000 MT. It has
about 15 godowns each having an average storage capacity for 750-1000 tonnes of
maize. These mandis also do not have mechanized grading except for Gulab Bag mandi
but even there the machines are not caliberated and moisture meters are found to be
faulty. There are no price display boards like it is being done in Nizamabad Mandi in
Andhra Pradesh.
64
From Mandis, it goes directly to
1. Starch Units
2. Poultry Units
3. Dairy feed Units
4. Snacks etc
Some portion also finds its way to Bangladesh under the export license of players like
Bhengani/LMJ, But it is actually supplied by traders at Gulabbag/Khagaria etc to
Bangla Desh border like Hilly Border and Changra border
Table 4.9: Description of Maize Going to Different Markets from Major Mandis in Bihar
Name and Name of the Major Corn

Sl. Name of the %age Local Name and %age of Outside Processors Sourcing Maize
No Mandi Markets Markets From Mandi
Patna (3%) & Amrit feeds (Bihar) & Suguna
1 Begusarai Hajipur (5%) Kolkata (30%) & Siliguri (25%) Poultries (Kolkata)
Punjab (8%), Haryana (15%),
Chandigar (7%), Delhi (10%),
Kolkata (30%), Jaipur (8%), Anil Starch (Ahmedabad); Surjit
Khagaria, Gogri Ahmedabad (8%), Jabalpur (7%), Starch (Phagwara, Punjab); Bharat
2 block (Big) Negligible Rajnandgaon (7%) Starch (Delhi)
Patna (0.5%),
Khagaria Gogri Gulabag (0.5%) &
3 (Small) Hajipur (0.5%) Siliguri (30%) & Kolkata (20%) NA
Khagaria Khagaria (95%) &
4 Alauliblock Bakhsi (2-3%) Negligible NA
Bhagalpur Kolkata (30%), Siliguri (25%) and
5 Kharik Bazar Kurrela (15%) Haryana (20%) Amrit feeds (Kolkata)
Punjab (20%), Gurgaon (10%), Surjit starch (Phagwara, Punjab),
Khagaria, Delhi (20%), Siliguri (10%), Bharat starch (Yamunanagar,
6 Parbatta Deoghar (5%) Kolkata (5%) Haryana)
Sugna Poultries (Kolkata); Amrit
Bhagalpur, Kolkata (25%), Silliguri (20%), Feeds (Hajipur), Venkey's India
7 Jhandapur Haripur (5%) Lucknow (12%), Karnal (15%) Limited (Kolkata)
Surjit starch (Phagwara, Punjab), Ultra
Bhagalpur, Punjab (20%),Varanashi (14%), Food & Feeds (Varanasi, UP). Amrit
8 Narayanpur NA Kolkata (30%) feeds (Kolkata)
Anil Starch (Ahmadabad), Maize
Ahmadabad (8%), Indore (5%), Products (Ahmadabad), Tirupati
Ratlam (4%), Ajmer (10%), Starch Industry (Indore, MP), Kashyap
Dehradun (6%). A significant Sweetners (Ratlam, MP), Universal
9 Khagaria Negligible portion goes out to Bangladesh Starch (Dondaincha, Maharastra) etc
Amrit Feeds (Hajipur & Kolkata),
Patna & Uttar Pradesh (8%), Uttaranchal Venkey's India limited (Dehardoon),
Bhagalpur, Muzaffarpur (0.5 (15%), West Bengal (20%), Bharat Starch industry (Yamunanagar,
10 Naugachhia to 1%) Haryana (18%), Delhi (5%) Haryana).
Hajipur & West Bengal (50%), Bangladesh Hitech Feed (Kolkatta), Sugna
Purnea, Gulab Muzaffarpur (20%), Punjab (5%), Haryana Poultries (Kolkata), AaramBag
11 bag (0.5% each) (5%), Delhi (3%), Assam (8%) hatcheries (Il am Bazar)
Source: IL&FS CDI Field Survey on Traders in different mandis
65
Many of the maize growing areas trade through commodity exchanges like MCX and
NCDEX (in Mumbai) and NMC in Ahmedabad. There have been no delivery centers of
these bodies in Bihar. Recently Department of Agriculture (DoA) has allowed NCDEX
to launch the country's first spot exchange in Bihar in September-end 2007 with trading
in maize contracts.
Trade Channel and Value Chain
The following trade channel was observed in maize marketing in Bihar.
Village level aggregator The village level aggregator operates in two ways
(depending upon his financial capability):
Trader
Commission Agent
As a trader, the aggregator buys the produce from the farmers and sells them to the
bigger traders operating at block level. The cost of transportation, packing and labour
charge is met by the aggregator. The aggregator in this case keeps a margin of around
3-5% over and above the cost incurred by him.
Whereas, as a commission agent he simply executes the order taken from the traders.
The entire cost up to the traders point, in this case, is borne by the farmer. The
commission agent in this case charges a commission up to 3% of the value of the
produce.
Commission agents at block level - In major market places such as Khagaria,

Maheshkhut, Mansi, etc commission agents are working for traders of Delhi, West
Bengal, Maharashtra on a commission of around 1.5%. These commission agents are
procuring maize from the village level aggregators and in turn supplying to the traders
operating out of major cities.
The overall trade and marketing channel is depicted in the following figure. The
diagram of the value chain of maize in Bihar explains the way in which the maize
growers, processors and other stakeholders are linked to each other:
66
Figure 4.4: Supply / Marketing Linkages for Maize in Bihar
Plz see the attached file
67
Mode of transport - Both railway and road transport is used for transportation of
maize. Generally transport cost incurred in road transport is lesser than the cost
incurred in railway wagons. For example, the transport cost using railway wagon up to
Delhi is Rs.100/quintal while the transport cost using truck is Rs.80/quintal. There are
some indirect / hidden costs involved in transportation through trucks such as bribes
demanded at check posts.
Table 4.10: Maize Value Chain in Bihar

Details Cost (Rs.)/Quintal
Farm gate price of maize 600
Packing 6
Labour charge for loading 2.50
Transportation up to CA level 20
Aggregator margin 20
Price at CA point 650
Commission of CA 9.75
Transportation up to Delhi 100
Trader price at Delhi 760
The transport cost of carrying maize differs with the distance. The transport cost of
carrying maize to major ultimate users is given in the following table. Tthe
transportation cost may also vary depending upon the season. For example, it varies in
the range of 8-10% during peak season due to higher demand of trucks.
Table 4.11: Fare to various destination market from Gulabbag Mandi (Purnea)
(Fares are for one quintal) (In Rs per Quintal)

Indore Kolkata
Ahmedabad Jaipur Yamuna Nagar Guwahati (Madhya (West
(Gujarat) (Rajasthan) (Haryana) (Assam) Pradesh) Bengal)
Gulab Bag
220 140 150 110 180 70
(Purnea)
The value chain is depicted in the diagram below:
68
Figure 4.5: Value Chain in Maize
760
Rs/Quintal Wholesale Price-

100 Delhi
Transportation-
20 Delhi
Transportation up
2.50 to CA level
Handling
6
Packing
600
Farm gate price
4.9. Utilisation Pattern and Marketable Surplus of Maize in Bihar
The utilization pattern of maize in Bihar indicates that rabi maize is mainly grown for
market, whereas a substantial part of kharif maize is used as food and feed. In Bihar, as
far as Rabi maize is concerned, about 10-15% of the produce is retained at the
household level for self consumption / storage etc. About 85% of grower respondents
have reported that they sell more than 75% of their produce. Around 5% is being used
by local processing industry and the rest 80-85% goes out to other states like AP,
Punjab, Rajasthan and even Bangladesh where it is being used mainly in starch and
animal feed industries. However, in the districts of Begusarai and Samastipur, where
dairying is an important economic activity, boiled maize is being used as cattle feed. It
was also observed that human consumption of maize is very limited as the local food
preference is skewed towards wheat and rice.
69
It was estimated that almost 90% of the total maize produced in Khagaria, Katihar,
Purnea and Bhagalpur are being marketed outside the state. Whereas in Samastipur and
Begusarai this marketed surplus is around 75% as some portion (to the tune of 20% of
the total production) is used as cattle feed. However, marginal farmers in these districts
(with landholding up to 2 acres) are cultivating maize exclusively for cattle feed.
4.10. SWOT Analysis of Value Chain of Maize

Pre-production Production Post-harvest (storage/ Marketing
processing)
Strength Favourable Agro-climate Higher yield than national Availability of
average middlemen
Well established network traders at
of agri-input suppliers Farmers aware of latest different levels
--
seed/fertilizer/pesticide
options
Weakness Limited access to land by Higher irrigation cost Lack of storage facility High seasonal
poor forces farmers to sell at price fluctuation
Lack of proper guidance on lower prices
Lack of agri-extension micro-nutrient use and right Deferred/delayed
support agronomic practices towards Lack of credit availability payment
effective production to withhold stock
High transportation cost of
agri-inputs for most areas Lesser requirement of manual
labour, thus less scope to
Difficulty in accessing augment employment
credit and demand of opportunity for agriculture
upfront payment by input labour in the production
suppliers process
Opportunity Collective input Area expansion under QPM Proposed ethanol plant at Increasing
procurement (QUALITY Protein Maize) Begusarai railway raking
facility (one
Provision of crop loan Pooled irrigation with Growing poultry industry more station
through revolving fund effective methods/provision and feed requirement getting added to
for small and marginal of electricity for irrigation existing 2 with
farmers Expanding industrial
Better crop-rotation and demand of maize such facility)
inter-cropping practices Collective
Pooled collection and
Use of bio-fertilizers, bio- holding at village/GP marketing
pesticides and micro- level with storage facility through rural
nutrients for sustainable business hubs
maize farming 25% subsidy available on and producer
de-shelling machine groups
Availability of improved
low cost drying tools
(dried maize with
standard moisture %
commands higher prices)
Small-scale intermediate
maize processing like
flour mills etc.
Provision of storage
structure at GP level
Threat Degrading soil quality with

over-application of fertilizer
may affect maize yield in
long run
70
Annex Table 4A: Cost and Return from Cultivation of Rabi Maize
Cost
Materials Unit Quantity/Acre Price Amount Total
1 Seed Kg 10 120 1200.00 1200.00
2 Fertilizer (three times)
a Basal - NPK Kg 66 10 660.00 1486.10
b Basal - MOP Kg 22 5.5 121.00
c Basal - AS Kg 22 7.75 170.50
d 2nd Dose - Urea Kg 55 5.4 297.00
e 3rd Dose - Urea Kg 44 5.4 237.60
3 Pesticides lumpsum 500 500
Subtotal (Materials) 3186.10
Labour/Machine
1 Ploughing by tractor 2530.00
2 times by 3 furrow 2 440 880.00
tyne
5 times by 9 furrow 5 330 1650.00
tyne
2 Sowing MD 13 30 390.00 390.00
3 Planking MD 3 70 210.00 210.00
4 Fertilizer application MD 3 70 210.00 210.00
5 Irrigation by diesel Times 4 675 2700.00 2700.00
pump (9 hrs. per acre
@ Rs. 75/hr.)
6 Harvesting (1/16th of Kg 175 5 875.00 875.00
produce)
7 Transportation (Rs. Trolley 2 200 400.00 400.00
200/trolly)
8 De-shelling (cob- Kg 70 5 350.00 350.00
grain) (1/40th share)
9 Drying & packing of Per acre 1 200 200.00 200.00
maize grains
Subtotal 7865.00
(labour/machine)
Total 11051.10
Return
Harvest of Grains Qtl./acre 28 500 14000.00 14000.00
Harvest of Cobs Lumpsum 500.00
Harvest of biomass lumpsum 2000.00
(used as fodder &
fuel)
Total Return 16500.00
Net Profit (not including the lease rent of 1 acre of land)
Only from harvest of Grains Rs./acre 2948.90
If included cobs and biomass Rs./acre 5448.90
* Prices and Amounts are in RS.
71
Annex Table 4B: Area and Production of Kharif Maize Between 2002-03 and 2006-07
Sl. Name of Districts 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
No. Area Prod. Area Prod. Area Prod. Area Prod. Area Prod. Yield
(ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.) (Kg/Ha
1 Patna 6905 11013 7598 10168 7689 11400 9072 14022 7569 14350 1570
2 Nalanda 2010 2463 2205 2936 2257 857 2462 934 2858 936 689
3 Bhojpur 2549 2722 2538 2016 3543 5878 2910 4924 2870 4497 1390
4 Buxar 1216 1897 1300 1599 3908 5026 3436 4287 4117 4408 1232
5 Rohtas 611 960 554 668 511 664 578 968 574 953 1490
6 Bhabhua (Kaimur) 383 601 332 408 338 436 498 701 356 470 1372
7 Gaya 3071 3775 4855 8302 6506 9265 4915 6267 4940 6723 1413
8 Jahanabad 705 813 604 1033 985 1310 705 863 690 959 1349
9 Nawada 1500 1651 1836 3138 1099 1326 1007 1274 1509 2116 1367
10 Aurangabad 505 548 418 714 431 501 787 1112 572 935 1404
11 Saran 18851 35764 17975 22654 16583 31709 18368 35224 17974 26446 1691
12 Siwan 11212 24101 11335 17991 11579 15204 10434 13584 12011 17300 1559
13 Gopalganj 8686 10853 11069 13453 8631 13984 8009 13036 7592 11414 1426
14 Muzaffarpur 7335 13113 6853 11179 9077 16664 3506 5482 3031 4059 1694
15 E.Champaran 7140 18234 5548 15742 6100 14145 6119 14145 6143 6175 2200
16 W.Champaran 2917 13195 2919 3756 4085 2283 3956 2187 4116 6821 1570
17 Sitamarhi 483 1044 484 813 210 374 212 372 210 288 1808
18 Sheohar 126 336 124 153 0 0 21 44 29 31 1868
19 Vaishali 16539 30809 17352 20587 17206 31763 15569 29187 15801 23768 1651
20 Darbhanga 1049 1606 727 854 1885 2464 2212 2885 2198 3424 1392
21 Madhubani 1038 1840 2371 3181 1769 2318 1871 2449 650 1011 1403
22 Samastipur 14628 19305 7196 9743 14939 19246 14933 19240 14158 20932 1343
23 Begusarai 40819 54458 40362 76611 40164 60514 40910 61138 42678 51721 1486
24 Munger 6135 7907 10374 12105 8676 13003 8378 12545 4200 5863 1362
25 Sheikhpura 865 1049 845 1369 580 830 2131 3010 1361 1632 1365
26 Lakhisarai 4444 8921 5205 8495 7075 8288 9473 11624 7601 9496 1385
27 Jamui 5949 6331 6101 8309 5633 2980 5300 2896 4725 4495 902
28 Khagaria 14099 11386 15298 21589 15003 23592 15202 23911 14828 17810 1321
29 Bhagalpur 27812 51263 29353 51402 25109 37755 26201 38811 25812 35553 1599
30 Banka 9526 11735 8371 19547 8011 7782 7008 6833 6652 8940 1386
31 Saharsa 6371 11449 5093 12338 5397 18828 3567 12891 3995 11317 2736
32 Sapaul 1408 3388 1216 3564 1549 4711 258 781 407 924 2763
33 Madhepura 7303 19313 6350 17027 4076 10953 4120 11466 3748 9840 2680
34 Purnia 10609 19894 11319 24395 10013 20488 15584 31267 13795 38097 2188
35 Kishanganj 885 1753 173 434 161 296 151 283 441 952 2053
36 Araria 3040 5521 3077 6389 7001 19755 8066 22393 8602 21676 2543
37 Katihar 7311 15676 9700 23350 13194 27227 18941 43069 10681 21259 2183
Total 256035 426687 259030 438012 270973 443819 276870 456105 259494 397591
72
Annex Table 4C: Area and Production of Rabi Maize Between 2004-05 and 2006-07
Sl. Name of Districts 2004-2005 2005-2006 2006-2007
No. Area Prod. Yield Area Prod. Yield Area Prod. Yield
(ha.) (M.T.) (kg/ha.) (ha.) (M.T.) (kg/ha.) (ha.) (M.T.) (kg/ha.)
1 Patna 657 3220 4901 678 1599 2358 582 1072 1842
2 Nalanda 666 3264 4901 924 2180 2359 751 1912 2546
3 Bhojpur 57 279 4895 23 54 2348 53 119 2245
4 Buxar 0 0 0 14 33 2357 81 182 2247
5 Rohtas 0 0 0 5 12 2400 2 4 2000
6 Bhabhua (Kaimur) 5 25 5000 0 0 0 0 0 0
7 Gaya 151 458 3033 98 259 2643 90 325 3611
8 Jahanabad 218 662 3037 411 1086 2642 195 705 3615
9 Nawada 136 413 3037 112 296 2643 148 535 3615
10 Aurangabad 7 21 3000 10 26 2600 7 25 3571
11 Saran 5210 14083 2703 4876 10864 2228 4850 10942 2256
12 Siwan 4072 8335 2047 4514 13271 2940 4095 15987 3904
13 Gopalganj 6206 14112 2274 8291 17320 2089 5626 11134 1979
14 Muzaffarpur 12218 32353 2648 10146 29941 2951 8549 22484 2630
15 E.Champaran 6644 26131 3933 6656 20840 3131 6235 3520 565
16 W.Champaran 5906 18675 3162 5984 13171 2201 6045 4256 704
17 Sitamarhi 1057 1640 1552 1148 1106 963 1737 3333 1919
18 Sheohar 855 1913 2237 768 1995 2598 668 2940 4401
19 Vaishali 6439 22672 3521 7865 17563 2233 7459 22347 2996
20 Darbhanga 7220 16454 2279 7437 8121 1092 7871 22424 2849
21 Madhubani 50 126 2520 200 218 1090 302 1286 4258
22 Samastipur 23964 62019 2588 24938 27232 1092 25263 118660 4697
23 Begusarai 16849 38702 2297 16733 54750 3272 17164 68175 3972
24 Munger 2009 3626 1805 756 1630 2156 1820 3802 2089
25 Sheikhpura 0 0 0 16 62 3875 13 64 4923
26 Lakhisarai 841 2641 3140 541 2089 3861 541 2673 4941
27 Jamui 216 678 3139 56 216 3857 92 455 4946
28 Khagaria 25792 97881 3795 29868 126521 4236 32400 181926 5615
29 Bhagalpur 10300 20242 2812 10516 20327 1033 10838 42691 3000
30 Banka 2242 5527 2465 2126 9461 4450 1936 7726 4208
31 Saharsa 9411 33908 3603 12100 98539 3185 10485 45390 4329
32 Sapaul 3447 13788 4000 2707 7553 2790 1861 7941 4267
33 Madhepura 13536 67274 4970 14976 36991 2470 16579 47946 2892
34 Purnia 10774 24037 2231 11859 26742 2250 11399 25750 2259
35 Kishanganj 271 681 2512 922 2384 2586 864 2477 2867
36 Araria 4090 8552 2091 4897 15964 3260 4064 14135 3478
37 Katihar 13496 38680 2866 15753 41352 2625 15519 48931 3153
Total 195012 583072 3035 208924 611768 2641 206184 744274 3612
73
Annex Table 4D: Area and Production of Summer Maize Between 2002-03 and 2006-07
Sl. Name of Districts 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
No. Area Prod. Area Prod. Area Prod. Area Prod. Area Prod.
(ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.) (ha.) (M.T.)
1 Patna 3012 7385 2755 7869 2730 7385 3816 9328 3814 13123
2 Nalanda 1557 4375 1581 4225 1628 4767 1378 3275 1364 4999
3 Bhojpur 244 695 755 2163 791 2125 756 1895 728 2386
4 Buxar 16 37 142 413 116 301 87 206 88 265
5 Rohtas 12 34 156 451 15 39 16 38 15 53
6 Bhabhua (Kaimur) 25 71 25 67 26 76 26 62 0 0
7 Gaya 1702 5492 2004 5572 1489 4150 1216 2997 1226 4177
8 Jahanabad 249 684 297 838 274 752 261 630 395 1403
9 Nawada 391 1071 574 1618 2427 6322 948 2370 1021 3334
10 Aurangabad 3 9 20 55 12 35 0 0 12 39
11 Saran 5815 15276 7183 29034 6639 13896 4931 7429 4953 16447
12 Siwan 3279 8749 3083 12466 2504 5222 3572 5747 3304 10925
13 Gopalganj 2001 5216 1957 7595 1437 3140 1906 3174 1707 5611
14 Muzaffarpur 13544 31630 11633 25960 11081 30191 13138 26196 10963 22255
15 E.Champaran 4700 14418 4994 11242 4725 11784 4851 12025 4806 10163
16 W.Champaran 5953 17072 6039 12684 5996 17524 6101 19200 6459 13734
17 Sitamarhi 1657 5142 1085 2432 1384 3520 4202 10418 4202 8939
18 Sheohar 480 1502 494 1115 370 962 279 693 275 626
19 Vaishali 12105 48981 9394 22231 9679 29249 9762 26486 10902 23682
20 Darbhanga 1835 4243 2050 3928 3473 8774 3421 8687 3349 10519
21 Madhubani 468 1080 1017 1842 236 502 271 630 265 981
22 Samastipur 5141 11890 5129 8857 5172 9438 5054 10500 5147 22237
23 Begusarai 3641 9901 3875 11057 3451 7113 3251 6974 3445 11863
24 Munger 1065 2624 1171 3681 1182 2868 1825 3190 1768 5796
25 Sheikhpura 82 162 194 712 31 48 53 120 57 210
26 Lakhisarai 112 221 48 174 46 139 0 0 10 34
27 Jamui 311 613 323 1077 349 863 164 342 216 661
28 Khagaria 8948 21179 9543 30586 10267 23699 7104 14281 7509 25139
29 Bhagalpur 9522 24636 9383 25896 7716 21687 10328 28602 7788 26655
30 Banka 2449 6383 3281 8938 3306 9214 3310 9123 3726 13113
31 Saharsa 14029 35470 13419 39285 13572 39857 16024 51460 15999 53394
32 Sapaul 6392 13970 6875 17779 5726 23605 6998 23036 9634 45808
33 Madhepura 15783 63342 17366 60828 18225 89774 18530 52644 19483 57051
34 Purnia 18214 39762 17616 40942 16242 40034 18603 30936 17774 86824
35 Kishanganj 198 418 209 465 192 421 213 427 244 1230
36 Araria 6878 13040 5190 11754 6343 9245 7117 21252 8099 38893
37 Katihar 9050 15890 10402 24990 11917 25771 15706 32161 14890 71515
Total 160863 432663 161262 440821 160769 454492 175218 426534 175637 614084
74
Annex Table 4E: Procurement of Coarse-Grains (Figures in Tonnes)
State/Year JOWAR BAJRA MAIZE RAGI TOTAL
2001-2002
Andhra Pradesh - - 14961 - 14961
Gujarat - 45867 8164 - 54031
Karnataka - - 17783 77598 95381
Madhya Pradesh 2867 10339 43055 - 56261
Maharashtra 28301 6075 23254 - 57630
Rajasthan - 33982 2181 - 36163
Total 31168 96263 109716 77598 314745
2002-2003
Andhra Pradesh - - 4035 - 4035
Karnataka - - 990 9 999
Madhya Pradesh 3012 - 27 - 3039
Maharashtra 50382 4 1354 - 51740
Total 53394 4 6406 9 59813
2003-2004
Andhra Pradesh 4274 2174 270473 - 276921
Bihar - - 707 - 707
Chhatisgarh - - 2863 - 2863
Gujarat - 1 705 - 706
Haryana - 199121 - - 199121
Karnataka - - 15591 - 15591
Madhya Pradesh 863 87 20310 - 21260
Maharashtra 42980 192 16838 - 60010
Rajasthan - 44297 29277 - 73574
Total 48117 200,000 356764 - 650753
2004-2005
Andhra Pradesh - - 223223 - 223223
Chhatisgarh - - 10891 - 10891
Haryana - 130122 - - 130122
Karnataka - - 380341 48730 429071
Madhya Pradesh - 259 1782 - 2041
Maharashtra 11928 4810 14757 - 31495
Punjab - - 227 - 227
Total 11928 100000 631221 48730 827070
2005-2006 (Position As On 01.05.2006)
Andhra Pradesh - - 448861 - 448861
Chhatisgarh - - 8737 - 8737
Haryana - 4900 - - 4900
Karnataka - - 379650 63273 442923
Madhya Pradesh 220 - 2788 - 3008
Maharashtra 67258 58 29649 - 96965
Total 67478 4958 869685 63273 1005394
75
Annex Table 4F: Value Chain Analysis of Maize
Pre-production Production Post-harvest Marketing
process & (storage/
harvesting processing)
Stakeholders Revenue officials Farm machinery Village /cluster Village/cluster
involved in land suppliers, agri- level petty level petty traders;
settlements and input suppliers, trader/storage, de- raking agents at
consolidation, agriculture labour shelling operator, Railway yards,
lessee/landlords, (mostly women), agriculture labour market yards,
agri-input bore-well owners, (mostly women) District
suppliers, Govt. Extension Agents, Procurement
Extension Agents, Govt. Irrigation Committee
credit institutions, Deptt. Staff
fellow
farmers/knowledge
and input
providers
Activities/ Land leasing or Ploughing by Transportation by Negotiation with
Processes share cropping , tractor, sowing, tractor and storage village traders/
procurement of planking, fertilizer at home by human transportation to
agricultural inputs and pesticide labour railway or market
like seeds and application, yards
fertilizers weeding/hoeing,
harvesting,
drying, de-
shelling by human
labour
Tools/ Materials Tractors, pick-up Tractors for De-sheller Tractor & mini-
vehicles, boats for ploughing, trucks for
transportation of levelling and transportation
inputs making furrows
and diesel pumps
for irrigation,
weeding and
harvesting tools
Institutions Seed companies, Informal farmers Informal traders/ Traders
State agriculture interaction, adhayatias Associations,
department, Agriculture network networks, agents
farmers clubs Department, of maize-based
Govt. Irrigation industries
Department
* Agri-input supplier includes traders and petty traders at district/block/village level market
supplying fertilizers, seeds, and pesticides to farmers.
76
Chapter 5: Status of Maize Processing in Bihar
Introduction
Maize can be utilized in many different forms by converting it into a variety of

products, through grinding, alkali processing, boiling, cooking and fermenting (like
animal feed, flour, corn flakes, corn meal, corn oil, starch and its derivatives like
glucose etc). The utilization spectrum of maize is large and diversifies covering about
3500 industrial products, specially textiles, pare, glue, pharmaceuticals, confectionery,
cosmetics and more recently fuel. All these industrial applications are adding to the
global demand and thus offering opportunities to make it a profitable crop in the state.
Maize processing and utilization pattern shows that in India, 10-15 per cent of
the total produce is used for industrial purposes. In Bihar, However, only 5% of the
maize is being used by local processing industry and over 80% goes out of state. Bihar
has no starch-producing unit. There are some units (around 10) dealing in poultry feed
& flour making in Khagaria, Bhagalpur and Purnea districts.
Earlier maize was the staple food in the state. But now, different varieties of paddy &
wheat are entering the grain market replacing maize from its staple food status. Hence
its consumption is falling. On the other hand its supply is increasing due to various
factors like growing production and productivity among others. The state is not being
able to make use of the availability of maize in the state due to lack of maize processing
units in Bihar. As a result more than 80% of Bihar maize goes outside the state to the
processors in Andhra Pradesh, Gujarat, Rajasthan, Haryana, Karnataka through road
and rail transport and gets processed there. Therefore from value chain perspective,
more profitable processing/activities relating to this sector like production of hybrid
maize seeds, and by-product of maize i.e. starch, maize syrup, ethanol, corn flakes, etc.
are carried out side the state.
77
Thus in absence of adequate processing facility, the huge marketable surplus of
Bihar, especially in rabi season depends completely on other states for its consumption.
Any obstruction in this trading chain in future may lead into spoilage of that surplus,
affecting the entire value chain.
5.1. Status of Maize Processing in Bihar
The processing industry plays a vital role in growth of a sector. The maize sector in
Bihar is too small in relation to the production of maize in the state. The maize
processing industry in Bihar is represented by about 10 small and micro units
manufacturing traditional food and animal feed products. The processing in maize
sector that exists in Bihar is basically limited to hybrid seeds, raw grains, and
production of some low value added products like cracks, grinded corn, maize besan,
poultry feed, cattle feed, etc. This sector is dominated by private players.
Shiv Shakti Agro India with annual production of 50000 MT of cattle and poultry feed
and Amrit Feed with annual production of about 50000 MT of poultry feed are the
largest maize processors in the state. Surya Pashu Aahar is another, though insignificant
manufacturer (60 MT / year) of cattle feed in the state. Rest of them are engaged in the
manufacture of traditional food items.
K.M Udyog with annual production of about 2000 tonnes is the largest producer of
traditional maize (food) products. They are engaged in production of Besan, flour,
Dalia, Seviyan, Suji and cracks. Sudhir Cracks is also into production of cracks and
grinded corn and produces about 400 quintals annually. Other processors are very small
producing insignificant quantities (<35 tonnes / annum)
The data on the units engaged in maize processing in Bihar has been given in the
following table.
Table 5.1 : Details of Maize Processing Units in Bihar
78
Sl. Name & Location Year of Production Details Primary Raw Procurement of Source of Maize
No. Address 0f of the Unit Estab- Material Maize Procurement Storage
the lishment Capacity in
Processing Plant
Unit
Quantity Price
1 Shivshakti Khagaria 1991 1. Cattle Feed (5000 Maize 23000- Rs.500- Sourcing Agent 5000-7000 T
Agro India T/Y) 24000 MT 850/Qn. in plant
Ltd., godown
2. Poultry Feed (45000
T/Y)
2 K.M.Udyog Khagaria 2005 1. Besan (312T) Maize 2328 T - Organised 200-250 T
(Q.P.M) supply source
2. Atta (351T)
3. Dalia (784T)
4. Seriyan (176T)
5. Suji (265T)
6. Cracks (155T)
3 Sudhir Cracks Khagaria 1998 1. Cracks (300 Q) Maize 305 Qntls - Grain Mandi, 100 Q
Industry Khagaria
2. Grinded Corn (80Q)
4 Anil Cracks Khagaria 2003 1. Cracks (25 T) Maize 32 T Grain Mandi, 60 Q

Factory Khagaria
2. Grinded Corn (10 T)
5 Girdhari Corn Bhagalpur 2002 - Maize 2.6 T - Grain Mandi, Gunny bags
Chips Nathnagar
(Bhagalpur)
6 Surya Pashu Bhagalpur 2004 Cattle feed (60 T) Maize 130 T - Grain Mandi, No storage
Aahar (Bhagalpur) facility
7 Sri Purnea 2006 1. Chips (12 Q) Maize - - - -
Ramprasad
Jaiswal 2. Grinded Corn (5 Q)
8 Alok Flour Purnea 1992 Grinded Corn (96.5 T) Maize 130 T - Grain Mandi, 55-60 Q
Mill Gulab Bagh,
Purnea
9 Yogendra Purnea 2003 Grinded Corn (6.10 T) Maize 6.40 T - Grain Mandi, 25 Q
Saha Gulab Bagh,
Purnea
10 Amrit Feeds Patna 1994 Poultry Feed (69067.19 Maize 41176.25 T - - -

Limited T)
Note: NA=Not Available; Darra - Semi Grinded corn for non-human consumption; Besan- Roasted corn Flour;
Dalia- Semi Grinded corn for human consumption; Sewai- Corn porridge
Suji-Finely grinded corn for human consumption.
Source: IL&FS CDI Field Research
Some of the Bihar maize is also being used by some food processing units
to make extruders & cracks. These companies are
Maize
Name of the
S# Location consumed Brand
companies
(MT)
1 Fritolays Kolkata 5000 Kurkure
79
2 Haldiram Kolkata 4000 Murmure
3 Kuber Kolkata 500 Bindaass
4 others Bihar 500 Cracks
Total 10000
Source: Fritolay raw material vendors
5.2. Maize availability and quality
In Bihar, overall supply of maize does not lag behind the demand, and the state
attracts lot of buyers from outside the state due to superior quality of its rabi maize.
The processing units in Bihar procure raw maize either from the agents or directly
from the mandis. The interactions with processors revealed that the procurement price
of raw maize is quite reasonable and quality quite acceptable. The availability
however (particularly during off season) has been reported as one of the constraints
for growth of the sector.
5.3. Production and Production Costs
Maize as the raw material is the single largest component of production cost of
poultry / cattle feed. Any change its price and/or quantity will directly affect the
prices and realization of the final product.
Table 5.2: Cost of Production for Cattle Feed (Apr-2007 to Jan-2008)
(Cost is in Rs per Kg of Cattle Feed)
Cost Component April May June July Aug Sept Oct Nov Dec Jan Average
Raw Material 5.8 5.78 5.76 5.75 5.6 5.91 5.87 5.85 6.01 6.32 5.87
Processing 0.39 0.38 0.4 0.35 0.39 0.41 0.31 0.39 0.36 0.34 0.37
Lab 0 0 0.01 0.01 0 0 0.01 0.01 0.01 0 0.01
Packing 0.33 0.39 0.34 0.34 0.36 0.35 0.33 0.35 0.36 0.3 0.35
Salary and Wages 0.37 0.39 0.43 0.5 0.39 0.39 0.34 0.38 0.34 0.32 0.39
Admin. OH 0.32 0.3 0.31 0.35 0.31 0.26 0.22 0.28 0.23 0.26 0.28
Total Cost of Prodn 7.21 7.24 7.25 7.3 7.1 7.32 7.1 7.26 7.31 7.5 7.26
Source: COMFED
Figure 5.1: Break-Up of Production Cost for Cattle Feed
80
Salary and
Packing Wages
(5% ) (5% ) Admin.
(4% )
Lab
(0% )
Processing
(5% )
Raw Material
(81% )
Source: COMFED, Patna

Comparing production costs of two poultry feed units of Amrit Feeds (the largest
maize processor in the state, producing 70000 MT of poultry feed per annum) in two
different locations one in Bihar and other in Andhra Pradesh, it has been observed
that the cost of raw material is 20% cheaper in Bihar during April to August as
compared to Andhra Pradesh. However, the cost of raw material is 15% expensive in
Bihar as compared to Andhra Pradesh during September to March. The cost of
production can be brought down if stored maize locally available during September
March.
Non availability of power is a major issue of concern for the industry. The average
power cut in Hyderabad suburb in Andhra Pradesh is 4-6 hours per day whereas there
is 8-10 hours of power cut in Hajipur, Bihar. To add to the production costs in Bihar
the diesel cost is also 5% higher in Bihar.
5.4. Market for Processed Maize
A close look at the maize sector in general reveals that the states, which are developed
in dairy and poultry industry have a larger maize processing sector also. This is due to
the availability of assured market for the product. For example, Andhra Pradesh, which
tops in the poultry industry, has a number of feed units spread in the state apart from a
few starch units. Due to this large market base, the processing industry can produce the
quantities without much fear of lack of marketability.
81
At present the poultry and fishery industry in Bihar is not yet developed and starch
industry is virtually non-existent. However the recent trends show increase in chicken
consumption in the state. This would automatically lead to higher demand for poultry
feed.
In north Bihar, there are several rivers and ponds in which fishing is being done. This
fishing business can provide a good market for fish feed, which uses maize as their
basic ingredient. But this can be achieved only if the fishing industry itself is in the first
place made more organized. Government of Bihar is taking lot of steps to encourage
the sector. (see chapter 03 for details)
5.5. Problems Relating to Maize Processing in Bihar
There is a lot of scope for processing industry in the maize sector. Both, high & low
value added products can be processed in maize sector. At present, despite sufficient
availability of raw material, maize processing industry in Bihar is very underdeveloped
Some of he factors constraining maize processing industry in Bihar as follows:
1. Poultry sector which uses poultry feed is not so much developed in Bihar,
hence low demand and low production within home state.
2. Most of the farmers use by-products of their crop as cattle feedback, so no

sufficient domestic demand for cattle feed (lack of purchasing power is also
an important factor).
3. Dearth of industries in Bihar, using high value by-products of maize i.e.

starch, maize syrup, corn oil, ethanol, etc, as their input.
4. Low rate of urbanisation in Bihar does not provide good market for maize
processed items like breakfast cereals (corn flakes,etc.)
5. And most important of all these are lack of power which is very essential for
running of any machine based industry.
5.6. Government Initiatives
82
These constraints has certainly hampered the growth of maize processing sector, but
now with the changed scenario in Bihar, there are certain impetus for the growth of
maize processing sector
1. New government is very consciously and sincerely trying to negate the

negative image of the state which had made the state non-preferred
investment destination for entrepreneurs.
2. Due to governmental efforts to reduce air pollution (ethanol blending of

petroleum & diesel), the demand for fuel ethanol has to increase. This
increased demand for ethanol as a fuel additive would result in dramatic
growth in ethanol production. Ethanol is produced from maize by either wet
milling or dry-grind processing.
3. Brand building of Bihar is going to change the urban character (both in

qualitative and quantitative terms) of the state, and this change would
provide impetus for growth of beverage and snacks sector. This would
increase the demand for by-products of maize like maize syrup.
4. Dairy sector is on growth path and this sector can provide a good market for
cattle feed products. COMFED has a good network of milk collection
centres, this network can be used for marketing of cattle feed products.
COMFED can have its own cattle feed producing plant.
From investment perspective, there are positive developments for maize processing
sector in the state. Investors from other states have put forward their proposals for
investment in the maize processing sector in Bihar. One such proposal was approved by
the State Investment Promotion Board (C.M/Cabinet approval date 22.09.2006) for
establishment of four maize processing units and Silicon Project one in each district
Begusarai, Muzaffarpur, Khagaria, and Vaishali. Product mix of this proposal is
ethanol, extra neutral alcohol, pharmaceutical/perfumery alcohol, maize oil, ferphural
alcohol, poultry feed, and cattle feed. Total investment is of Rs. 2500 crore and
promoter of this project is M/S Indian Gasohol Ltd., Tamilnadu.
83
5.7. SWOT Analysis for Maize Industry in Bihar
Strengths Weaknesses
Stagnating corn production in the

Favorable Government policies for
state
cultivation and production of
maize Weak marketing linkages affecting
prices and procurement.
Strong raw material base with
huge surplus for high value Poor availability of basic
products infrastructure
Stable and consistent demand for
maize which has no close
substitutes
Winter crop gives the state a
significant strength
Opportunities Threats
Increasing and diversified product Inconsistent supply due to

uses dependence on rain
Growing demand for starch from Stiff competition from other states
sector like food, textiles, paper,
pharmaceuticals etc.
Increasing demand for corn gluten
as a poultry feed in South East
Asian countries.
Growing demand for ethanol used
as fuel
Chapter 6: Constraints / Priority Issues in Maize Cultivation

and Processing
84
From the field study and discussions with the stakeholders, some issues have been
identified which are constraining the growth of maize sector in Bihar. Since quality and
supply of maize production would determine the price, quality and supple of raw
material for the processing units, problems relating to maize cultivation have also been
included. On the basis of the findings the constraints can be broadly covered under
following heads:
1. Quality and Availability of farm inputs
2. Poor extension services
3. Poor Post Harvesting Practices and Infrastructure
4. Low Procurement
5. Lack of Proper marketing linkages and Infrastructure
6. Limited / No Processing Industry within state
Farm Inputs
Seed is one of the most important inputs of maize production on which the efficacy of
other agriculture inputs is dependent. Maize farmers of Bihar are mainly using
hybrid seeds manufactured by private companies. They are procuring these seeds from
local retailers. The quality of these seeds, sometimes, is questionable. There are some
instances of low germination, high mortality of plants along with lesser seeds in the
cob. Farmers are attributing this mainly to the quality of seeds, as even with similar
kind of farming practices and soil type they are getting different results.
The availability of inputs such as seeds, fertilizers and pesticides is not adequate. This is sometimes resulting in higher
prices being paid by the farmers. Similarly the quality of fertilizers is also questionable at the end of the farmers. They
are finding lots of adulteration especially in urea.
2. Research, Extension Services And Institutions
There is very less support to maize farmers in Bihar in terms of extension services and
institutions. Whatever extension service support is there in the state, it is mainly from
the private seed companies. These companies, to promote sales of their brand, provide
85
different types of support services to farmers. State has an agriculture university, a
regional centre of Indian Council of Agricultural Research, and there is also Centre of
the Directorate of Maize Research at Begusarai, working in the field of research on
maize. Out of all these three, only the Directorate of Maize Research is primarily doing
research related to maize. Krishi Vigyan Kendra (KVK) in Khudamanpur (Begusarai)
is doing good work for maize cultivators. Maize farmers are hardly aware of existence
of extension services for this sector. However, this sector could immensely benefit from
extension services. Through demonstration cropping of high value added maize crops,
farmers could be made aware of these crops and high returns on their cultivation.
The feedback from farmers revealed that they are unaware of suitable
technologies for preventing losses/damages to the crop. Since technological
options for controlling these biotic constraints are already available, non-
adoption appears to be the main constraint. Lack of appropriate input markets,
inadequate information about improved technologies, and failure of collective
action constrains the adoption of available rat- and termite-control technologies.
Rabi maize which is the main crop of Bihar needs 4-6 times irrigation, and these
are done by flooding process. Since, major maize producing areas are not under canal
irrigation and electric supply is highly deficient and unreliable, these irrigations for
maize crops are through diesel pumpsets, which makes irrigation cost high for maize
farmers. If farmers could be made aware of low cost irrigation techniques, like drip
irrigation, irrigation through sprinklers, etc., their irrigation cost could be reduced
substantially. Subsidy for these irrigation implements and others like de-shelling
machines can also play an important role in farm mechanization of this sector.
At industry level, on one side there are no restrictive types of regulations for
this sector, but at the same time, on the other side there are no substantial promotional
schemes of government for this sector. In Bihar, potential of agriculture-industry
linkage in this sector has yet to be realised. Due to very limited development of high
value adding industry in this sector, institutions supporting maize based industry are yet
to be developed in this State.
3. Post Harvesting Facilities And Infrastructure
86
There is low level of mechanization at farm level and most of the activities are carried
out manually. Since farmers are generally small and marginal, they store maize in
gunny gas etc at home. Their capacity to retain grain, therefore is limited to 2-10
quintals. As the maize producing areas are flood prone areas, their storing capacity goes
down to a great extent during the rainy season. Even if they are able to store the quality
of the produce is affected by high moisture content in these grains which lowers their
prices.
There are no mass scale storage facility available, either in private sector or public
sector. Only Gulab Bag mandi has storage capacity of 12000-15000 MT. Lack of
storage facility, prevent farmers from exploiting the opportunity of good prices for their
maize. High transportation cost further reduces farmers return on maize crop.
4. Prices And Procurement
There is provision for Minimum Support Price for maize grains, but at present there is
no procurement by the State agencies. Very high percentages of total produce are
available as marketable surplus. And this marketable surplus is easily sold in the
market. Prices of maize in different grain markets of Bihar varies from Rs.500 to
Rs.700/quintal, depending upon the quality of grain (yellow flint grain is most
preferred) and season from point of view of grain trading (peak season April to June;
and lean season December to March). Minimum support prices act as a benchmark
for open-market prices.
At present level of production and marketable surplus, absence of procurement

by the government agencies is not creating problems in terms of lack of demand
for maize grain, but it certainly slows down the upward movement of prices and
hence lower returns to farmers.
5. Marketing Facilities And Infrastructure
The maize marketing is unorganized and is dominated by commissioning agents and

traders. There is only one mandi for maize at Gulab bagh, Purnea. There are other
87
mandis like Dalkola, Mansi and Maheshkhunt (Khagaria) etc also which deal in maize
as well, besides other grains, though in small quantities.
These markets/mandis lack basic infrastructural facilities like platform for drying
grains, pest-free storage godowns, moisture metres, machines to ascertain quality,
grading and weighing, public utilities, etc. Only Gulab bag mandi in Purnea has storage
facility. It has 15 godowns having total storage capacity for 12000-15000 MT of
maize..
Lack of these facilities at mandis reduces the returns to both farmers and local maize
traders. Small players (farmers & small traders) are exploited by big players (wholesale
traders who supply grains to maize industry) on account of manipulation in weight and
assessment of quality of maize grains.
6. Limited Processing Activities in the State
Processing for maize sector in Bihar is basically limited to hybrid seeds, raw grains,
some low value added products like cracks, grinded cron, maize besan, poultry feed,
cattle feed, etc. This market sector is almost dominated by private players. From value
chain perspective, more profitable processing/activities relating to this sector like
production of hybrid maize seeds, and by-product of maize i.e. starch, maize syrup,
ethanol, corn flakes, etc. are out side the state of Bihar. Home state mainly deals in low
return activities like production of grains, semi-processed products (cracks, grinded
maize, maize besan, etc.), and some poultry & cattle feed industries. Majority of maize
grains are exported to states like West Bengal, Punjab, Haryana, Andhra Pradesh,
Maharashtra, Tamil Nadu and Nepal through road & railway transportation.
The overall poor investment climate in the state over last one and half decade poor
infrastructural facilities (including poor power supply) have been identified as the
major factors constraining the growth of processing industry in Bihar.
7. Power
The milling units require uninterrupted power supply. People from all sectors, farmers,
traders, industrialist, government officials expressed great concern about availability of
88
power in Bihar. Extremely poor power supply, in term of quantity and quality both, in
Bihar is the greatest limiting factor in setting up maize based industries in this state.
While larger processing plants can setup own captive power generation units, medium
and small size processors have to depend upon the power supply from the government.
89
Chapter 7: Recommendations
For proper integrated development of maize processing sector in Bihar, a multi-

dimensional approach is needed. Other related sectors, also have to be developed for
development of this sector. Government has to support private sector in terms of
research input, tax incentive, storage facilities, basic infrastructure like power, roads,
etc. This chapter summarises major recommendations for improving the
competitiveness of maize sector in Bihar. Major problems constraining the sector are
summarized below on the basis of response from the questionnaire survey.
Table 7.1: Major Problems of the Maize Sector in Bihar
Problems Weightage
Maize Maize
Cultivation Processing
1. Lack of demand
2. Lack of finance/ credit facility
3. Lack of linkages with service providers such as Agricultural
universities, FCI, etc
4. Lack of skills / practices
5. Problems in raw material procurement
6. Problems in uninterrupted power supply
7. Lack of infrastructure such as storage and roads *** ***
8. Lack of marketing infrastructure *** *
9. Natural calamities (Flood) ** *
Note: Very Severe Moderately Severe Not much Severe
Source: Based on IL&FS CDI Primary Field Research
90
Recommendations
i) Overall environment, in terms of availability of inputs, extension services to

farmers at field level, post harvest support to farmers, good returns to farmers
by developing marketing network, etc. need to be improved.
ii) There is a need to document analytically-based reasons for low farmer

adoption of improved maize technologies.
iii) Government can play the role of facilitator in this sector. Use of seeds for high
value added maize crops like baby corn, sweet corn, etc. should be promoted
through input subsidy to farmers. These high value added crops would
enhance the economic return to farmers.
iv) Government can play the role of facilitator in boosting the poultry & fish
sectors. These two sectors can grow quickly if maize based feed are being
given.
v) Normally, crop diversification within the maize crop, in terms of use of

different mixed crops like turmeric, onion & coriander by individual farmer is
negligible. This increases the risk of farmers in case of crop failure on account
of seed factor, as it has occurred sometime back on account of some problem
with Monsanto brand of maize seed. To minimize these types of risks, State
government can introduce crop insurance for hybrid maize seed crop.
vi) There is a need to develop and popularize help line services on the lines of
one extended by Chandra Sekhar Azad University of Agriculture and
Technology, Kanpur, for farmers of Bihar, to disseminate first-hand
information.
vii) Farmers should be made aware of low cost irrigation techniques, like drip
irrigation, irrigation through sprinklers, etc., their irrigation cost could be
reduced substantially. Subsidy for these irrigation implements and others like
de-shelling machines can also play an important role in farm mechanization of
this sector.
91
viii) Bold initiatives in terms of research and institutional development are needed
from Bihar government, to reap benefits from new opportunities that are
arising in the maize sector.
ix) Creation of mass scale storage facility is urgently required, which will enable
the farmers to exploit the opportunity of good prices for their maize. In future,
this will ensure the constant flow of maize as raw material for the processors
in Bihar. Since constructions of warehouses are beyond the means of small
and marginal farmers, there is a need for strengthening the network of
warehouses owned and managed by Central Warehousing Corporation and
State Warehousing Corporation in maize producing areas.
It has been recommended that possibility of building storage capacities in

Public Private Partnership (PPP) format should be considered.
x) At markets/mandis level development of common facilities such as platform

for drying grains, standardized weighing machine, etc. should be done either
through public initiative or cooperative organizations.
xi) Procurement of maize by the government agencies is must to prevent the

downslide of prices and enable the farmers to get better returns.
xii) For proper integrated development of maize processing sector, a multi-

dimensional approach is needed. Other related sectors, like poultry &
fisheries, also have to be developed for development of this sector.
Government has to support private sector in terms of research input, tax
incentive, basic infrastructure like power, roads, etc.
xiii) At present, power supply for industrial purpose is not regular in Bihar, and
this is not going to improve in near future. So, in short term, option of captive
power generation (maize bio-mass co-generation) should also be thought
about.
92
Viability of Setting up Storage Facility
There is lack of proper storage and warehousing facilities for maize in the state. It is
leading to distress selling by farmers and traders, reduced prices/realization due to
spoilage, wastages, flow of maize outside the state etc. The following section discusses
the viability of storing maize for securing higher prices at a later stage.
Fig. 7.1: Trend of Maize Prices (in Rs per Quintal) and Maize Arrivals (in 000 MT) at
Gulab Bagh Mandi During 2007-08
900
800
700
Prices and Maize Arrivals
600
500
800
400
650 750 750
700
650 650 650
300 600 600
550
200
100
55 100 25 15 10 10 5 2
45 5 3
0
Ap ril
No v
Dec
June
Oct
Sept
Jan
Feb
July
Au g
May
Months
Source: Traders Feedback at Gulab bag Mandi
The monthly maize prices in Gulab Bag mandi for 2007-08 have been used for the
analysis. The maize arrivals in mandis begin in April at Rs 650 per quintal. Since
arrivals are small as compared to its demand, the prices are higher. Maize starts to
arrive in bulk in May. During May 2007, over one lakh MT of maize was traded in this
mandi. This excess supply causes glut in the market thus pushing down the prices to Rs
550 by end of May. The prices start recovering by end of June as the maize arrivals
start coming down and overall trading slows down. During July-August, there is
demand in the market but supply is small. This leads to rise in prices and the prices
93
continue to rise consistently and reaches peak at around Rs 750 per quintal in August.
Prices fall again during off season (September October) due to fall in demand and
lack of supply. There is little trading done during September February as there is no
maize available in the state. These small quantities consists of maize stored by farmers
in cobs etc and whatever little is there in storages in Gulab Bagh mandi.
During this off season, buyers of Bihar maize get diverted to other states (like Andhra
Pradesh, Karnataka, Maharashtra etc) as Kharif maize start to arrive in mandis of these
states from September onwards and is available till end of November. However, during
December to February, there is no maize available anywhere in the country. Therefore
the prices begin to rise in by end of November and continue to rise till February when
the price of maize ranges between Rs 800-850 per quintal.
Large traders and processors have confirmed the need for storage facilities for Rabi
maize in Bihar to the tune of 2-2.5 lakh MT at various places like Kursela, Seemapur
(Naughachia), Mansi, Khagaria and Gulab Bagh, Purnea. Riddhi Siddhi (Uttaranchal),
Sukhjit (Malda), and Gujarat Ambuja exports (Uttaranchal) together need around 1000-
1100 MT per day and are the major buyers of maize from Gulab Bagh mandi. Poultry
units in Assam also procure maize from this mandi. Some quantities also find their way
to Bangladesh to be used in poultry feed units.
Buyers of Bihar Rabi maize (mainly starch and poultry units in Assam, Gujarat,
Haryana, Rajasthan etc) divert their procurement from other distant maize producing
areas in AP, Maharshtra and Karnataka during off season in Bihar (September
onwards). If Bihar Rabi maize is available in stores and warehouses, it would be more
economical for these producers to buy it from Bihar than the distant markets (due to
high transport, logistics, other expenses). Also the quality of Bihar Rabi maize is much
superior as compared to Kharif maize available in mandis of AP, Karnataka etc.
Thus the maize can be stored during May and June (at prices around Rs 550 per
quintal) and sold during off season (during September to February) when prices go upto
94
Rs 750 800 per quintal.11 However, enough care would need to be taken to ensure
quality as most of buyers of Bihar Rabi maize are poultry units which are quality
sensitive.
If the trader or the farmer is to take advantage of the price rise, he should be able to
store it for this period and there should be enough margin after deducting the cost of
storage.
Table 7.2: Cost of Storing Maize
Cost for 3 Cost for 8

S. No Cost Component Unit Cost months months
1 Rent charges for storage 3.5 10.5 28
2 Fumigation 1.5 4.5 12
3 Interest @10% 1.00 3 8
nd
4 Gunny Bag cost (2 hand) 18 18 18
5 Transportation (lumpsum) By Truck upto 50 Kms 20 20 20
6 Loading / Unloading / Stacking 8 8 8
Total Cost of storage (1 to 6) 31 64 94
7 Procurement price in may / June (Rs per Quintal) 550 550
Total cost in February (1 to 7 ) (Rs per Quintal) 614 644
Expected Price in February (Rs per Quintal) 750 800
Net Profit (Rs per Quintal) 136 156
The total cost of storage (including procurement price) for 3 months work out to be
around Rs 614 per quintal for 3 months. If the prices go up to Rs 750 in August, then
the net profit per quintal is Rs 136. Now if it is stored during May-June (@Rs550) for 8
months and sold in February (@Rs 800), the net margin after deducting the storage
costs work out to be Rs 156 per quintal. Thus, there is a strong case for setting up
storage and warehousing facilities in the state. But since there is risk involved
(uncertainty in demand, unforeseen events etc) which could in fact affect demand and
prices in future prices. If there is some risk mitigation mechanism in the form of
insurance etc, it sure is a viable option
11 During October-November, kharif is available in markets of AP and Karnataka. Maize can also be procured from these states
for storage in Bihar
95
96
Table 7.3 : Constraints & Interventions Required for Maize Sector in Bihar
Supply Chain Major Constraints Intervention required
Use of old techniques of cultivation Strong linkage with relevant institutions for
(for sowing, irrigation etc) providing effective extension services
Maize Cultivation Limited mechanization at farm level Direct linkages with input suppliers such as
seed and fertilizer companies with farmer
Lack of quality inputs groups
Lack of awareness/ limited ability of Creation of Cluster Parks with necessary
farmers for upgradation/ infrastructure and common facility centre
modernisation of machinery as they
are small Boosting the co-generation of power units
from maize biomass
Lack of access to institutional credit
Absence of modern infrastructure
High irrigation cost due to expensive
diesel
Poor harvesting practices and lack of Improvement in post harvesting operation

Post Harvesting storage and warehousing facilities are
Providing proper storage facilities
Practices and leading to wastages upto 25%
Infrastructure
Inadequate storage facilities and
warehouses
Inadequate infrastructure at the Implementation or activation of quality
mandis in terms of lack of testing / control & testing system
Prices and grading/sorting facilities
Marketing Storage and warehousing facilities at the
Infrastructure Limited storage facilities mandis
Declining demand of maize as Product diversification and its

human food commercialization
Market
No processing industry within the Contract farming done by the processors
state
Innovative market support schemes.
Development of poultry & fish sector
97
Table 7.4: Major Constraints & Interventions Required for Maize Processing Industry
in Bihar
Supply Chain Major Constraints Intervention required
Seasonal supply due to lack of Setting up of Storages and warehouses will
adequate storages and facilitate uninterrupted supply of quality raw
Raw Material
warehousing materials at reasonable rate
Unreliable supply, and high
prices
Scarcity of availability of skilled Improvement of existing equipment

craft persons implementation of advanced technology and
Process
production technique
Lack of financial
resources/credit facilities Linkages with lead banks, financial
institutions and MFIs
Lack of modern infrastructure
Creation of Cluster parks with necessary
infrastructure and common facility centre
Highly dependent on traditional Market creation for food items

products : Poultry feed and cattle
feed, flour etc. Development of related industries such as
Products poultry and fishery
Stiff competition from
processing industry in West
Bengal, AP and Karnataka
Lack of demand for other value
added products such corn-flakes
within the state
Lack of testing/certification facilities Implementation or activation of quality
control & testing system
Quality Assurance
Loss of substantial local and Improved physical infrastructure

national markets because of poor
investment climate in the state Strengthening linkages with central agencies
like FCI, COMFED, SWC, CWC,
Lack of demand for maize as BISCOMAN
cereals due to slow rate of
urbanisation Setting up of urban haats and other market
Market systems in the state,
No coordinated movement as yet
to promote the maize products
No institutional marketing
channel for maize
References
98
CIMMYT (2005) Maize in India: Production Systems, Constraints, and Research
Priorities
CIMMYT (2007) Tropical and Subtropical Maize in Asia: Production Systems,

Constraints, and Research Priorities
Department of Agriculture, Government of Bihar
ESCAP (2005) Identification of Pulling Factors for Enhancing the Sustainable

Development of Agriculture with Special Reference to Maize in India, Working Paper
No. 88
http://dacnet.nic.in/eands/
http://www.agriculture-industry-india.com/
Karvys Special Report on Maize
Multi Commodity Exchange of India Ltd (2007) Maize Futures: Feasibility Study
World Bank (2007) Bihar Agriculture: Building on Emerging Models of Success
www.fao.org/es/esa/en/pubs_sofa.htm
www.ficci.com
99
CONTENTS
100
List of Abbreviations
AP : Andhra Pradesh
CGIAR : Consultative Group on International Agricultural Research
CIFWA : Central Institute of Fresh Water Aquaculture
CII : Confederation of India Economy
CMIE : Centre for Monitoring Indian Economy
COMPFED : Bihar State Cooperative Milk Producers Federation Ltd.
DMR : Directorate of Maize Research
DoA : Department of Agriculture
EU : European Union
FCI : Food Corporation of India
FGDs : Focussed Group Discussion
FHP : Farm Harvest Price
GCA : Gross Cropped Area
GDP : Gross Domestic Product
GIA : Gross Irrigated Area
GoB : Government of Bihar
GoI : Government of India
GSDP : Gross State Domestic Product
Ha : Hectare
HYV : High Yielding Varieties
ICAR : Indian Council for Agricultural research
IDC : Industrial Development Commissioner
IFPRI : International Food Policy Research Institute
KVKs : Krishi Vigyan Kendra
M. Ha : Million Hectares
MSP : Minimum Support Price
MT : Metric Tons
NABARD : National Bank for Agricultural and Rural Development
NCAP : National Centre for Agricultural Policy
101
NDRI ; National Dairy Research Institute
NGO : Non-Government Organization
NIA : Net Irrigated Area
NSA : Net Sown Area
NSDP : Net State Domestic Product
NSSO : National Sample Survey Organization
PDS : Public Distribution System
PPP : Public Private Partnership
QPM : Quality Protein Maize
RAU : Rajendra Agricultural University
SHG : Self-Help Groups
T/Ha : Tons/Hectare
USA : United States of India
WB : World Bank
WHP : Wholesale Price
WTO : World Trade Organization
102
List of Tables
Table 2.1: Area, Production and Yield of Major Maize Producing Countries in
2005
Table 2.2: State-Wise Maize Area, Production and Yield during 2005-06
Table 3.1: Details of KVKs Operating in Bihar
Table 4.1: Number of Farmers Involved in Maize Cultivation in 2005-06 in Bihar
Table 4.2: Cropwise Cultivation of Maize in Bihar
Table 4.3: Size Class-wise Number and Area of Operational Holdings in Bihar
(1995-1996)
Table 4.4: Area and Production of Summer Maize (Gamma) in Major Districts in
Bihar During 2006-07
Table 4.5: Area and Production of Kharif in Major Districts in Bihar During 2006-
07
Table 4.6: Area and Production of Rabi Maize in Major Districts in Bihar During
2006-07
Table 4.7: Cost of Maize Cultivation
Table 4.8: Minimum Support Price for Maize (Rs./quintal)
Table 4.9: Description of Maize Going to Different Markets from Major Mandis in
Bihar
Table 4.10: Maize Value Chain in Bihar
Table 4.11: Fare to various destination market from Gulabbag Mandi (Purnea)
Annex Table 4A: Cost and Return from Cultivation of Rabi Maize
Annex Table 4B: Area and Production of Kharif Maize Between 2002-03 and 2006-07
Annex Table 4C: Area and Production of Rabi Maize Between 2004-05 and 2006-07
Annex Table 4D: Area and Production of Summer Maize Between 2002-03 and 2006-
07
Annex Table 4E: Procurement of Coarse-Grains (Figures in Tonnes)
Annex Table 4F: Value Chain Analysis of Maize
Table 5.1 : Details of Maize Processing Units in Bihar
Table 5.2: Cost of Production for Cattle Feed During April 2007 to Jan 2008) (Cost is
in Rs per Kg of Cattle Feed)
103
Table 7.1: Major Problems of the Maize Sector in Bihar
Table 7.2: Cost of Storing Maize
Table 7.3 : Constraints & Interventions Required for Maize Sector in Bihar
Table 7.4: Major Constraints & Interventions Required for Maize Processing Industry
in Bihar
104
List of Figures
Figure 2.1: Components of Maize

Figure 2.2: World Area, Production and Yield (In Kgs/Ha) of Maize (2005)
Figure 2.3: Share in Global Exports (2007-08)
Figure 2.4: Share in Global Imports (2007-08)
Figure 2.5: Seasonality Chart for Maize Arrivals in India
Figure 2.6: Maize Area, Production and Yield in India
Figure 2.7: Season Wise Area Under Cultivation
Figure 2.8: Season Wise Production
Figure 2.9: Season Wise Productivity (Kgs per Hectare)
Figure 2.10: Maize Consumption Pattern in India
Figure 2.11: Indias Exports and Imports of Maize During 2000 2006
Figure 4.1: Maize in Bihar Acreage, Production and Yield
Figure 4.2: Agricultural Map of Bihar
Figure 4.3: Major Maize Growing Districts in Bihar
Figure 4.4: Trend in Maize Prices and Arrivals at Gulabagh Mandi, Purnea During
2007-08 (Prices in Rs. per Quintal and Arrivals in 000 MT))
Figure 4.6: Value Chain in Maize
Figure 5.1: Break-Up of Production Cost for Cattle Feed
Figure 7.1: Trend of Maize Prices (in Rs per Quintal) and Maize Arrivals (in 000
MT) at Gulab Bagh Mandi During 2007-08
105
Market (National and International)
Maize Processing/ Product manufacturing

Starch Units
like Ridhi
Sidhi, Poultry feed Snack / Breakfast Dairy feed
Sukhjeet processors companies companies
Starch etc
(mainly out of Bihar)

(Stockist
Maize Marketing (Bihar)

/Traders)
Rs 575-800/Quintal Prices depends on
Month of sale
Mandis
550-650/Qt.
550 - 650/Qt.
(Stockist
Kachchha Adhatiya
(Village Aggregators)
/Traders
MSP or Below MSP for

that year
Maize Cultivation (Bihar)
500 - 600/Qt.
Storage (CWC /
Maize Growers SWC)
Seeds Fertilizers Extensions

Private dealers & NSC Private dealers services
106

Maize Bihar Report

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Chapter 1: Introduction

1.1 Background and Context

Maize can be utilized in many different forms by converting it into a variety of

2. To map major mandis and analyse price movements

5. To find potential of maize processing industry in the state,

6. To out line the regulatory/Policy guidelines of the government,

7. To identify the constraints with farmers, traders and processors.

1.3. Approach, Database and Methodology

Primary data collection

Current area, production, productivity of all districts for maize production

Marketable surplus of maize in these districts

Linkages of production hubs to different consumption sources.

Secondary Data Collection

The secondary database sources included published books, Reports of multi-lateral

In addition to the above structured interviews, 4 Focussed Group Discussions (FGDs)

As stated, separate structured questionnaires were developed for farmers/growers,

Field Operations and Data Management

Figure 2.1: Components of Maize

Starch Protein Oil Fibre Minerals

Source: ICAR Annual Report

Grain or field corn,

2.1. Trend in Global Production, Consumption and Trade in Maize

2.1.1. Status of Maize Production in the World

Area Harvested (in 000 hectares)

Production (in 000 tonnes)

Production Area harvested Yield per hectar

Source: Estimated from data downloaded from www.fao.org/es/esa/en/pubs_sofa.htm

1 Karvy Comtrade Limited (2008) Seasonal Report on Maize

2.1.2. Global Consumption Scenario

2.1.3. International Trade in Maize

Source: Karvy Comtrade Limited (2008) Seasonal Report on Maize

2.2. Trend in Production, Consumption and Trade in Maize in India

2.1. Maize Seasonality in India

Fig 2.5: Seasonality Chart for Maize Arrivals in India

Source: Discussions with traders

2.2.2. Maize in India Acreage, Production and Yield

Area (in 000 Hectares) Production (in 000 Tonnes)

Source: Estimated from data downloaded from http://dacnet.nic.in/eands/

6 ICAR (2007) Vision - 2025

Source: ICAR (2007) Vision 2025

2.2.3. State Wise Production of Maize

1. High Productivity States: Karnataka, Andhra Pradesh, Bihar (Rabi) Maharashtra,

2. Low Productivity States : Rajasthan, Madhya Pradesh, Gujarat, Uttar Pradesh,

2.2.4. Utilisation / Consumption Pattern of Maize in India

Diversified uses of maize have prompted higher production in India. Presently,

Fig 2.10: Mize Consumption Pattern in India

Source: ICAR (2007) Vision 2025

Graph 2.11: Indias Exports and Imports of Maize

Source: CMIE database

2. College of Agricultural Engineering, Samastipur, Rajendra Agricultural

3. College of Fisheries, Dholi & College of Fisheries, Tirhut , College of

4. Rajendra Agricultural University, Faculty Of Agriculture, P O Pusa,

1) Growing maize in flood prone areas.

2) Setting up 12 godowns in all the maize growing districts

3) Setting up of rural godowns in 216 blocks of each 250 MT.

4) Target production by 2012 to be 3 million MT per annum from 1 million

Seed production will be private companies' domain

Immediate investment in farm mechanization and rural warehousing.

6. Directorate of Maize Research (DMR) Regional Research and Seed

1. Training Organizer, Vice- Chancellor, 1979

2. Training Organizer, -do- 1996

3. Training Organizer, -do- 1996

4. Training Organizer, -do- 1992