A Study on Developing the Supply Chain for A High Value Crop: Cultivation of Lemon Grass in Patna, (Bihar) India

Abstract:     
This case study explains the steps taken by the Agricultural Technology Management Agency (ATMA) in the Patna District of Bihar India to help very poor farmers link up with reliable markets to produce and market high-value medicinal and aromatic crops. The lead crop, which is the focus of this case study, is Lemongrass a aromatic crop. The farmers in the study area were extremely poor and faced many constraints in attempting to increase their farm income, such as poor infrastructure, unscrupulous middlemen and the absence of reliable markets for their crops.

The ATMA was instrumental in helping these farmers get organized and in learning how to produce, extract essential oil from the herb and market lemongrass oil along with other medicinal and aromatic crops to buyers’ specifications. In addition, the ATMA played a central role in coordinating and mobilizing the expertise of other organizations, including scientists from universities and research organizations, private sector firms, banks and non-governmental organizations (NGOs) to develop and test the production technologies, to train the farmers and farm leaders, to arrange for the needed inputs and so forth.

As a result of these extension activities, the participating farm families substantially increased their farm income, which improved their rural livelihoods through better nutrition and expanded schooling for their children, especially girls; in addition, rural employment was generated due to the need for post-harvest handling and processing of these crops. Therefore, this case study is a step-by-step explanation of how ATMA helped farmers to overcome these constraints and how the supply chains for Lemongrass and other medicinal crops were established in the Patna District of Bihar, India.

Number of Pages in PDF File: 11

Keywords: ATMA, medicinal and aromatic crops, supply chain

JEL Classification: O13, O17, Q12, Q13, Q16

working papers series