Focus on: Local knowledge of traders

Traders, farmers and mango development projects in Kerala, India

I have noticed that those involved in development projects involving commercial farming are beginning to realize that the knowledge of farmers is of considerable value. However, the knowledge of traders is still largely neglected. Apparently the notion of the 'exploitative trader' continues to prevail, so that they are largely bypassed by development programmes. And yet traders often act as a link between local farmers and outside organizations, while they have considerable useful information on marketing and prices, as well as on new technologies, both those developed in research stations or private nurseries, and trials conducted by farmers. I have taken a closer look at mango cultivation in two villages in Kerala, India, and I would like to share my experiences there.

This piece is based on qualitative information which I gathered in 1995 by means of rapid rural appraisals and semi-structured interviews with farmers, mango traders, and bank and government officers in the villages (panchayats) of Kollangode and Muthalamada, Palghat District, India.
These two villages are among the major mango-growing areas of Kerala. Due to special climatic conditions, they enjoy an early harvest season in comparison with other parts of India. Mango from Kerala can be sold in terminal markets in North India well before mid-April, the start of the harvesting season in the north.
Groundnut and cotton-the cultivation of which is becoming less and less profitable-are gradually being replaced by young mango trees, especially in the higher areas. This shift has had a positive environmental effect: The tree cover has increased and less water and chemical fertilizers are being used. Experienced farmers, traders, and managers of local private nurseries say that the micro-climatic and edaphic conditions prevalent in the higher-lying areas of Kollangode and Muthalamada are ideally suited to the cultivation of mango.

Traders and farmers
Regional and inter-state mango trading from Palghat District started about 20 years ago. Today several wholesalers have established contacts with large commission agents in terminal markets in North India. In addition, some 100 small country buyers and commission agents are involved in mango marketing in Kollangode and Muthalamada. But the role of mango traders is not restricted to marketing. They also supply seedlings, recommend cultivation techniques, and lease most of the mango trees in the region from local farmers. The main motive of traders for leasing mango trees is to ensure that they will have enough fruit to sell and can compete with other local traders. During the flowering season in December, traders inspect the trees with the farmers, and then settle on a price for a number of trees or even whole plots. The full lease is paid in advance to the tree owner. From then until the start of the monsoon season-i.e., from December to late May-the trader is fully responsible for the cultivation of the trees: weeding, spraying with pesticides, applying fertilizers, and ultimately harvesting.
Most farmers in this region prefer to lease their mango trees rather than to cultivate and harvest them on their own. They have a guaranteed income and all risks are borne by the trader; moreover, their cultivation costs are lower and they have fewer labour problems. In effect, the role of farmers is limited to decision-making-whether to plant mango trees at all-and caring for the young trees during the first three to five years. After that, farmers become mere 'tree owners'.
Given this scenario, it will be clear that traders are more experienced than farmers. Over the years they have gathered considerable knowledge regarding both cultivation practices and the mango varieties best suited to local conditions. Through business contacts the experienced wholesalers are also well-informed about mango cultivation techniques developed elsewhere. Traders know about both the most marketable and the most ecologically suitable mango varieties. They usually recommend planting early-yielding varieties that fetch comparatively high prices. They advise farmers to grow four or five different varieties, in order to reduce the risks represented by weather conditions, pests and disease, and to lower dependence on individual terminal markets, which often have particular preferences regarding fruit varieties. Farmers who do not lease their trees often rely on the seedlings provided by the governmental projects. However, those projects distribute only two varieties, neither of which is popular in the market.

Mango development projects
At the time of the research (1994-1995), there were three governmental development projects related to mango in progress in the area: the Centrally sponsored scheme on the integrated development of tropical and arid zones; the Centrally sponsored scheme for rejuvenation, and the Kerala horticultural development programme (KHDP). Under the two centrally sponsored schemes, farmers benefited from cultivation subsidies. The KHDP, which operated on a loan basis, also had training and marketing components. The latter programme, in particular, sought the active participation of the farmers, who became shareholders in a new fruit-processing factory located elsewhere in Kerala. The local farmers are well aware of the influence and knowledge of the traders, and in general they take advantage of the various services which traders offer. However, the development projects focusing on mango cultivation have thus far failed to include the traders. Farmers in Kollangode and Muthalamada hinted at certain shortcomings in the projects. They complained about the selection process for subsidies and loans, and about the low quality of the mango seedlings provided. It would appear that they do not yet have as much confidence in the marketing system of the KHDP as in the well-established private marketing network which operates through local traders. A planned scheme involving direct marketing to a fruit-processing factory owned by the KHDP would exclude the local traders, bringing to an end the popular leasing system described above.
In addition, local knowledge has not been incorporated into the mango development projects. While the three projects were oriented toward farmers and their needs, little attention was given to the knowledge of farmers, and none at all to that of the traders. Instead of integrating the traders' knowledge and services, the projects have strived to create parallel marketing structures. At best, the projects are ineffective in increasing mango production, as they fail to recognize that the traders are currently the most important producers. At worst, they disrupt existing networks and marginalize resource-poor farmers, who then tend to be neglected by official development schemes.

Recommendations
Although this case study represents one specific situation, it does show that traders can play a significant role in agricultural development, one that goes beyond marketing, and actually includes the extension and promotion of agricultural technologies. Given the important position of traders, the mango development projects should seek their co-operation in sourcing and providing seedlings, inter-state marketing, and advocating environmentally sound cultivation practices. Under a mutual arrangement, the projects could concentrate on the provision of cultivation subsidies and loans. Since the objective of the projects, i.e., to increase mango production, is compatible with the traders' interests, such collaboration would appear to be feasible. When the traders realize that this co-operation has the potential to increase production, leading to higher returns for themselves, they will be ready to give others access to their knowledge. However, coordination and monitoring must remain with the projects, in order to prevent exploitative relations between traders and mango growers.
At present, traders and other actors directly or indirectly involved in cultivation, play no role at all in development projects. A more thorough analysis of the locality-specific situations, together with a better understanding of the role played by various actors (including traders), will no doubt ensure that the laudable farmer orientation in agricultural projects does not lead to a 'farmer bias'. Through an active co-operation with traders, development-project activities can take advantage of existing structures and knowledge. Through co-operation rather than competition, traders can be motivated to consider aspects that go beyond mere economic self-interest. At the same time agricultural projects can encourage traders to embrace eco-friendly technologies and hence to contribute to sustainable agricultural development.

René Veron
C-139 Defense Colony
New Delhi 110 024
India
Tel.: +91-11-462 2948
Mobile tel.: +91-98100 28893
E-mail: reneveron@mantraonline.com

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