Seabuckthorn Report 26th April, 2018
Seabuckthorn Report 26th April, 2018
Seabuckthorn Report 26th April, 2018
Government of India
Ministry of Agriculture & Farmers Welfare
Department of Agriculture, Cooperation & Farmers Welfare
(Horticulture Division)
Krishi Bhawan, New Delhi
Dated: April 26, 2018
To
The Mission Director,
State Horticulture Mission,
Government of Jammu & Kashmir, Himachal Pradesh,
Uttarakhand, Sikkim & Arunachal Pradesh
As per this study pencil thick hardwood rooted cutting could be used for laying
new orchards. 3300 plants (female 2970 and male 300) will be required for planting of
one hectare in the spacing IMxlM (plant to plant) and 3M between the rows. Besides
this the new orchard laying will require land preparation/pit digging, farm yard manure
and irrigation facilities.
Encl: As above.
(s'1fit~I)
Assistant Commissioner (MIDH)
Copy to:
1. Secretary (Horticulture), All States
2. Mission Director, SHM, all States (MIDH)
3. All NLAs of MIDH
4. Deputy Commissioner, Leh, Ladakh, Jammu & Kashmir
5. CEO, National Medicinal Plants Board, Ministry of AYUSH, 3rd Floor,
AYUSH Bhawan B-Block, G.P.O. Complex, I.N.A., New Delhi 110023
6. PPS to AM/MoS/Secretary/AS (Horticulture)/JS (MIDH)/H.C., DAC&FW
7. Under Secretary / Deputy Secretary (MIDH)
Value Chain Analysis of
SEABUCKTHORN
(Hippophae rhamnoides L.)
in Leh Ladakh
November 2017
TSERING STOBDAN
TSEWANG PHUNCHOK
November 2017
TSERING STOBDAN
TSEWANG PHUNCHOK
Deldan Namgyal
MS Raghuvanshi
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
Acknowledgement ........................................................ 9
Lists of Tables ............................................................. 10
Lists of Figures ............................................................ 10
Executive summary ....................................................... 11
References ................................................................. 47
Annexure 1 ................................................................. 48
Annexure 2 ................................................................. 51
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
ACKNOWLEDGMENT
We sincerely thank Directorate of Arecanut and Spices Development, Ministry of
Agriculture and Farmers Welfare (Department of Agriculture, Co-operation &
Farmers Welfare), Government of India for sponsoring the study on 'Value Chain
Analysis of Seabuckthorn (Hippophae rhamnoides L.) in Leh Ladakh' through
Ladakh Autonomous Hill Development Council, Leh.
Our special thanks to Director, Directorate of Arecanut and Spices Development,
Ministry of Agriculture and Farmers Welfare for providing valuable suggestions at
different stages of the study.
We express our sincere gratitude to Hon'ble Chief Executive Councillor and
Hon'ble Executive Councillor (Agriculture), LAHDC Leh, and Director DIHAR for
their support and guidance during the course of this project.
We would like to thank M/s Ahmad Herbal India, M/s Sindhu Fruit Processing, M/s
High Altitude Fruit Processing, M/s Takshos Products, M/s Ladags Apricot Store,
and M/s Top World Fruit Processing for their support in primary survey. Thanks to
the volunteers for their active involvement in collection of primary survey data
from remote villages in Ladakh.
The technical input received from the following agencies is thankfully
acknowledged.
●Horticulture Department, LAHDC, Leh
●Forest Department, LAHDC, Leh
●Defence Institute of High Altitude Research, Leh
●Regional Research Station, ICAR - CAZRI, Leh
●Regional Research Station, SKUAST-K, Stakna, Leh
●Bami Duniya Consumer Cooperative Society, Leh
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
10
LIST OF TABLES
Table No. Title of the Table Page No.
Table 1 Distribution of Seabuckthorn (Hippophae sp.) in India 17
Table 2 Seabuckthorn based products developed by 18
Defence Institute of High Altitude Research, Leh
Table 3 Year-wise collection and processing of 24
fresh Seabuckthorn berry in Leh Ladakh
Table 4 Year-wise collection and processing of 33
Seabuckthorn berry during 2004-2015, and
projected increase in berry harvest and
income generation from 2016-2030 in Leh Ladakh
Table 5 Projected year-wise collection and processing 34
of Seabuckthorn berry when commercially
cultivated on 2500 ha
Table 6 Projected year-wise collection of 35
Seabuckthorn leaf when commercially cultivated on 2500 ha
Table 7 Views of berry collector on status, benefits and 48
constraints faced in value chain of Seabuckthorn
Table 8 Views of processors on status, benefits and 49
constraints faced in value chain of Seabuckthorn
Table 9 Views of farmers on status, benefits and 51
constraints faced in cultivation of Seabuckthorn
Table 10 Views of berry collector on status, benefits and 52
constraints faced in Seabuckthorn cultivation
LIST OF FIGURES
Figure No. Title of the Figure Page No.
Figure 1 Primary processing of fresh Seabuckthorn berry 25
Figure 2 Value chain of Seabuckthorn in Ladakh and the role of actors 27
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
EXECUTIVE SUMMARY
S
eabuckthorn (Hippophae spp. L.) is an ecologically and economically
important plant of trans-Himalayan Ladakh. The plant is hardy and it can
withstand extreme temperatures from -43ºC to 40ºC and it is considered to be drought
tolerant. Seabuckthorn berries are among the most nutritious of all fruits. The medicinal
value of Seabuckthorn was recorded as early as the 8th century in the Tibetan medicinal
EXECUTIVE SUMMARY
classic rGyud Bzi. Seabuckthorn grows naturally in Ladakh without much of human
interference. After the transfer of a Seabuckthorn-based technology by Defence Institute of
High Altitude Research (DIHAR) to a private firm in year 2001, collection of berry has
become an important income generating activity. The collection period is short and the
return is high. Popularity of Seabuckthorn as a source of income can be judged from the
appreciation in price of the fresh berry from Rs 8 per kg in year 2001 to Rs 45 per kg in 2017.
Currently, the demand for Seabuckthorn far exceeds the supply capacity of the region.
Large scale cultivation of Seabuckthorn has the potential to be a key means of sustainable
development for trans-Himalayan Ladakh.
Ladakh remains the major site for natural Seabuckthorn resource with over 70% of the total
area (13,000 ha) under Seabuckthorn in the country. Despite the vast area under natural
forest, the mean annual berry harvest is less than 5% of the total available Seabuckthorn
resource in the region. Primary processing of Seabuckthorn berry is done in Ladakh while
various components such as the pulp, seed and hull are segregated for further value
addition by firms located outside the region.
This study analyses each link in the value chain of Seabuckthorn in Ladakh region and
recommend ways to effectively use the existing resources and improve marketability of
Seabuckthorn. The study also undertakes missing links that deter cultivation of
Seabuckthorn in the region. Value chain analysis was carried through primary and secondary
research. Primary survey involved personal interviews with berry collectors (n=828),
farmers (n=567) and processors (n=5). A structured open ended schedule was used to obtain
data from Leh and Nubra valley. Qualified personals (graduates and post-graduates) were
engaged for collection of data from primary sources. Secondary research was done through
available literature and documents available with research institute (DIHAR) and
government agencies.
●Ladakh remains the major site for natural Seabuckthorn resource with over 70% of the
total area (13,000 ha) in the country.
12
season, coincidence of harvesting period with that of other crops, and unorganized
plantation, which all restrict harvesting of only a fraction of the available resource.
●Berry is harvested by hand using 'beat the bush' method in September. Tip of a branch is
held with one hand while beating with a stick with the other. Harvested berry is
transported to the processing unit.
●Majority of the Seabuckthorn stand is on land under the executive control of Forest
EXECUTIVE SUMMARY
●Majority of the berry collectors are from the needy section of the society and women
constitute 67.4% of the work force.
●Processors are amongst the most important actors in the value chain. They determine
the price of berry and purchase raw material from the berry collectors. They also carry
out the primary processing while various other components such as the pulp, seed and
hull are sold to manufacturers or commission agents. There are twelve Seabuckthorn
berry processors in Leh district.
●Berry collectors are the most valued actors in Seabuckthorn value chain. They harvest
berry from Forest/community/private land. They sell the berry directly to the
processors. Approximately 1,500 households are engaged in berry collection in Leh
district.
13
EXECUTIVE SUMMARY
●Over 90% of the Seabuckthorn harvested in Ladakh are sold after primary processing.
Government support is required in providing incentives for developing value added
products in Ladakh.
●Market linkage for Seabuckthorn is poor. There are many small players in the value
chain. In order to strengthen the market linkages there is a need to set up a single
window online system for providing information and services related to Seabuckthorn
trade. Local entrepreneurs focus only on selling the raw material. Their risks taking
capacity is low, and are fully dependent on demand for raw material from outside the
region. Formation of 'Ladakh Seabuckthorn Cooperative Society' comprising of all the
local entrepreneurs would strengthen their role in Seabuckthorn value chain.
●There is gap in demand and supply. Demand for Seabuckthorn far exceeds that of the
supply capacity of the region. Government policy is required for increasing the raw
material supply.
14
Policy Suggestions
Promote Seabuckthorn for National Security: People living along the international border
play key role in securing the border. However, in recent years a trend in migration of people
living along the international border to the nearby Leh town has been observed due to
economic reasons. Promote Seabuckthorn cultivation in villages along the international
border to improve the socio-economic status of the villagers and to discourage abandoning
EXECUTIVE SUMMARY
their settlement.
Value added products: Over 90% of the harvested raw material is currently sold outside the
region. There is an opportunity for development of value added products in the study area.
Hence, government needs to create a favourable environment for the investors through
partial support in the form of subsidies, training and skill development on value added
products.
Convert thick forest into productive stand: Less than 5% of the natural Seabuckthorn
available in Ladakh is being harvested. There is a need to have a government policy for
converting the dense Seabuckthorn forest into productive stand.
Convert barren land into green patch: Vast geographical areas in cold desert are barren
primarily due to lack of irrigation. Area under forest cover is only 0.064% and total cropped
area is just 0.2% in Leh district. There is a need to convert the vast barren land into green
patch by planting Seabuckthorn.
Increase raw material: Most of the processors and manufacturers reported non-availability
of raw material for large scale commercial activities. Government support is required for
scientific cultivation of Seabuckthorn. Involvement of private players for large scale
cultivation may also be considered.
Support local entrepreneurs: The local processors are key players in the value chain. They
are in need of financial assistance to create infrastructure facility to augment their business
prospects. Hence, the banks and government should come forward to provide financial
support in addition to technical support.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
15 Chapter 1
INTRODUCTION
S
eabuckthorn (Hippophae spp. L.) is an ecologically and economically important plant
that belongs to the family Elaegnaceae. The species is a wind pollinated dioecious
shrub. It has silvery deciduous leaves and colourful red, orange or yellow berries that
remain on the shrub throughout the winter. The plant is hardy and it can withstand extreme
temperatures from -43ºC to 40ºC and it is considered to be drought tolerant. The shrub
develops extensive root system having ability to fix atmospheric nitrogen. It is therefore an
ideal plant for soil erosion control, land reclamation, wildlife habitat enhancement, and
farm stand protection in temperate region.
16
and bioactive substances such as carotenoids, free and esterified sterols, triterpenols, and
isoprenols. It contains approximately 15-20% proteins. Flavonoids content in leaves ranges
from 312-2100 mg/100 g of air-dried leaves. It serves as a valuable ingredient in animal
feed, therapeutic agent having antiviral activity against a wide spectrum of viruses and can
be used as a source of unconventional protein for human food.
17
18
19
Objectives
1. To improve the value addition of Seabuckthorn at various stages of the value chain
2. To study the potential of Seabuckthorn cultivation on vast barren land in Ladakh
Chapter 2 20
APPROACH
AND
METHODOLOGY
21 Chapter 3
OVERVIEW OF
SEABUCKTHORN INDUSTRY
3.1 World Scenario
Inspired by the ancient literatures, scientists in the former Soviet Union carried out
research on Seabuckthorn from the 1930s onward. In 1940s, especially after the Second
World War, nutritionists and pharmacologists analyzed the vitamin components and found
that Seabuckthorn could be used not only as a food but also as a medicine. Several countries
including the Russia, Mongolia, Poland, Germany, Finland, Italy, Norway, Hungary, Canada
and USA have been studying this amazing plant. Seabuckthorn is known in different
languages as Shaji in Chinese; Duindoorn in Dutch; Sanddorn in German; Olivello Spinoso in
Italian; Oblepicha in Russian; Tyrni in Finnish; Espino de Mar, Falso Espino, Espino Amarillo
in Spanish; Havtorn in Swedish.
China: China is the largest producer of Seabuckthorn. Total area under wild Seabuckthorn is
740,000 ha and that of cultivated field is over 300,000 ha. Seabuckthorn has been used
extensively for desertification control. Search for a suitable plant species in terms of
survival rate, multiplication and soil improvement coupled with economic benefit has
resulted in identification of Seabuckthorn as the most appropriate species for
desertification control. Seabuckthorn afforestation through air-seedling has been carried
out since the 1950s in the mountainous area of northwestern China. Large area is put under
Seabuckthorn cultivation each year in China for berry production as well as eco-
environmental improvement. There are over 200 Seabuckthorn-based products available in
Chinese market.
Russia: Russians were the pioneer in Seabuckthorn research and product development. The
development of superior Seabuckthorn cultivars was a closely guarded secret under the
Russian space program during the space race of the 1960s and 1970s. Commercial
cultivation of Seabuckthorn started in Russia during the 1920s with development of cultivars
for large commercial farms. Seabuckthorn oil was used by Russian cosmonauts for
protection against harmful radiation.
Mongolia: Total area under wild Seabuckthorn is 13,500 ha and that of cultivated field is
6000 ha. Mongolia harvested 900 tons berry in 2011 and capable of harvesting 30,000 tons
berry annually. The country has adopted National Seabuckthorn Program. Products
developed and commercialized include juice, pulp oil, sauce and jam. Approximately 2-3%
of Seabuckthorn is exported to Japan, South Korea and Taiwan. Mongolian National
Association of Seabuckthorn Growers and Producers (MNASGP) was established in 2007 and
is active in promotion of Seabuckthorn in the country.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
22
Seabuckthorn is considered a means for sustainable development of the region. Area under
wild Seabuckthorn is 9267 ha. Ladakh remains the major site for natural Seabuckthorn
resource with over 70% of the total area (13,000 ha) under Seabuckthorn in the country.
Seabuckthorn berry collection from natural habitat has become an important activity in the
region since the year 2001. Approximately 500 tons of berries are harvested annually. Over
90% of the harvested raw material is sold outside the region. Currently the demand for
Seabuckthorn of the region far exceeds the supply.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
23 Chapter 4
STATUS OF SEABUCKTHORN
HARVESTING AND PROCESSING
IN LADAKH
24
25
26
Drying : Drying of whole berry is also practiced since 2011 as there is a demand for whole
dried berry. A kilogram of dried berry fetches Rs 200-300. A combination of open sun drying
and electric drying is practiced in the region. Open sun drying is a tedious method and
generally takes more than a month to get the finished product. Besides, it requires large
area for drying and need protection from rain and wind. In view of the cumbersome method
of sun drying and the risk involved, the local entrepreneurs do not commit supplying of large
quantity of dried berry. Currently, 2-5 MT dried berry are being sold annually from Leh
district. There is a need to develop a low cost electric dryer suitable for the region. On an
average, 33.25±3.12 kg of whole dried berry is obtained when 100 kg of cleaned berry is put
to get dried in the sun.
27 Chapter 5
ASSESSMENT OF SEABUCKTHORN
VALUE CHAIN MARKETING SYSTEMS
IN LEH LADAKH
5.1 Value Chain Mapping and Actors
The value chain of Seabuckthorn in Leh Ladakh is presented in the value chain map (Figure
2). Overall, the existing value chain mainly comprise of Forest Department, community,
individual farmers, berry collectors, processors, commission agents, manufacturers,
exporters and research institutes.
Exporter
Research Institute
Forest Department : Majority of the Seabuckthorn stand is on land under the executive
control of Forest Department. Local communities require permission for berry collection
from the Forest Department in the areas under its jurisdiction.
28
Farmers : Individual farmers collect berry from Seabuckthorn growing around agricultural
field and on private land. They also allow other berry collectors to harvest berry from
private land.
Berry Collectors : They are the most valued actors in Seabuckthorn value chain. They
harvest berry from Forest/community/private land. They sell the berry directly to the
processors. Approximately 1,500 households are engaged in berry collection in Leh district.
Processors : Processors are among the most important actors in the value chain. They
purchase Seabuckthorn berry directly from the berry collectors. They determine the price
of berry. Most of these processors have established collection centres across major
Seabuckthorn growing areas. They carryout primary processing of fresh berry and sell
various other components such as the pulp, seed and hull to manufacturers or commission
agents. Besides processing fresh berry, they also undertake drying of berry and leaf as per
demand from manufacturers or commission agents. They maintain good relationships with
the berry collectors and research institute. There are twelve processors in Leh district and
each employ around 20 skilled and semi-skilled youth during processing.
Manufacturers : Few Indian manufacturers purchase Seabuckthorn pulp, seed and hull
directly from processors in Ladakh. They manufacture products and sell in Indian and
international market. Every year, few manufacturers purchase small quantity of
Seabuckthorn from Ladakh on trial basis for product development.
Commission agents : Small portion of Seabuckthorn from Ladakh reach manufacturers and
exporters through Commission agents. However, they role in the value chain is not highly
significant.
Exporters : Exporters perform sale of pulp and seed of Seabuckthorn in the international
market. Commission agents are involved in supply of Seabuckthorn to the exporters.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
29 Chapter 6
CONSTRAINTS, SUGGESTED
SOLUTIONS AND INTERVENTION
REQUIRED IN VALUE CHAIN
30
berry harvester are developed for Seabuckthorn planted in orchard system. Feasibility of
using the same in thick forests needs to be looked into.
Intervention required : The harvesting tools at R&D stages need to be studied on a variety
of conditions. Commonly used harvesters in other countries such as China, Russia and
Canada need to be studied in field conditions of Ladakh on H. rhamnoides subsp
turkestanica (most thorny species).
Gap : Seabuckthorn berry is a delicate and highly perishable one. It needs to be processed
the same day of harvesting.
Gap : Seabuckthorn growing in remote locations are not harvested due to need for
transportation of highly perishable nature of the berry over a long distance for processing.
Suggested solutions : Use reefer vans for transporting berries to processing units.
Gap : Seabuckthorn harvested in Ladakh are wild harvest. However, it is not certified as
organic. Additions of chemical preservatives after primary processing turn it into a non-
organic produce.
Gap : Over 90% of the Seabuckthorn harvested in Ladakh are sold after primary processing
without value addition.
Suggested solutions : Several formulations are being developed by DRDO and other
research institutes. Value added products can be developed in Seabuckthorn growing
regions. Promote Seabuckthorn as a unique health product both domestically and
internationally.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
31
Intervention required : Provide incentives for developing value added products in Ladakh.
Government support is required in infrastructural development due to remoteness of the
region. Promote Seabuckthorn as a unique product of Ladakh. There is need to focus on skill
development.
Gap : Market linkage for Seabuckthorn is poor. There are many small players in the value
chain.
Intervention required : Set up a single window online system for providing information and
services related to Seabuckthorn trade.
Gap : There are few small local players in Seabuckthorn growing areas. They focus mainly on
selling the raw material. Their risk taking capacity is low and are fully dependent on
demand for raw material from outside the region.
Suggested solutions : Strengthen the local entrepreneurs and encourage them to develop
and market value added products. Formation of 'Ladakh Seabuckthorn Cooperative Society'
comprising of all stakeholders would strengthen their role in Seabuckthorn value chain.
Gap : There is gap in demand and supply. Demand for Seabuckthorn far exceeds that of the
supply capacity of Ladakh region.
Intervention required : Government policy for converting the dense Seabuckthorn forest
into productive stand. Provide incentives for establishing processing units in Nubra valley.
Promote Seabuckthorn as horticultural crop.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
Chapter 7 32
POTENTIAL OF
SEABUCKTHORN CULTIVATION
ON VAST BARREN LAND IN LADAKH
Seabuckthorn is considered a forest crop and no major initiative have been taken to grow
the plant on farmer's field as horticultural crop. However, considering the socio-economic
importance of the plant it needs to be promoted as horticultural crop. Some of the
comparative advantage of Seabuckthorn as horticultural crop in cold desert region
includes:
New fruit crop : It is a lesser known fruit in India and therefore its potential is still
untapped. Potential buyers include nutraceutical, pharmaceutical, cosmetics and food
industries.
High returns : Berries sell at premium price, e.g. farmers get Rs 45/kg of berry in 2017. The
price will appreciate further since Seabuckthorn based products are now being promoted as
nutraceuticals.
Hardy plant : It is a hardy plant species which can withstand extreme temperatures and is
drought tolerant. Therefore, the plant can be grown on vast uncultivable land in cold desert
Ladakh.
Improve soil fertility : Seabuckthorn has symbiotic association with Frankia that fixes
atmospheric nitrogen thereby improving the soil fertility.
Early fruit bearing : Seabuckthorn plants raised from cuttings start bearing fruits from
fourth year onward and its average productive life is 30 years.
Insect, pest and disease : Insect, pests and diseases have not been reported in
Seabuckthorn and therefore it requires less management.
Product development : Over 200 products have been developed from Seabuckthorn in
various parts of the world. The product list will expand further since number of R&D centers
and Seabuckthorn based industries are expanding.
Environmental benefits : Seabuckthorn has extensive root system and grows fast. It is an
ideal plant for control of soil erosion, land reclamation, wildlife habitat enhancement and
farm stand protection. Seabuckthorn plantation, therefore, has both economical and
environmental benefits.
Firewood : The calorific value of dry Seabuckthorn is 4,785.5 calories per kg. The shrub is
fast growing and can be stumped after every 3-5 years. It reduces harvesting pressure on
other native woody plant species.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
33
Table 4 displays the year-wise collection and processing of Seabuckthorn berry in Leh
Ladakh during 2004-2015, and the projected increase in berry harvest and income
generation from 2016-2030. The basis for analysis of projected income for year 2016-2030
from natural Seabuckthorn resource was calculated based on certain assumptions. These
assumptions include: Firstly, berry harvest would increase at 10% per annum. Secondly,
price inflation of pulp is 6.32% per annum. Thirdly, cost of berry inflates at 37.83% of the the
selling price of the pulp. Fourthly, cost of packaging material inflates at 6.32%. Fifthly, total
cost incurred would be 20% of the gross income generated. Gross income generated is
calculated as product of quantity of pulp and selling price of pulp. Net income generated is
calculated as difference between gross income generated and total cost incurred. With the
current trend, the berry harvest would reach 1509 MT in 2030 and net income would be Rs 20
crore from existing natural Seabuckthorn resources.
Table 4 : Year-wise collection and processing of Seabuckthorn berry during 2004-2015, and
projected increase in berry harvest and income generation from 2016-2030 in Leh Ladakh
Berry Cost of Selling price Gross Total Cost
Net Income
Year harvest berry of pulp Income Incurred
(Rs in Crore)
(MT) (Rs/kg) (Rs/kg) (Rs in Crore) (Rs in Crore)
2004 170.4 15.0 62.0 0.6 0.1 0.5
2005 328.4 15.0 70.0 1.4 0.3 1.1
2006 196.9 16.0 72.0 0.9 0.2 0.7
2007 286.6 23.5 80.0 1.4 0.3 1.1
2008 138.2 23.5 75.0 0.6 0.1 0.5
2009 166.0 23.5 72.5 0.7 0.1 0.6
2010 90.9 24.5 76.0 0.4 0.1 0.3
2011 160.4 25.0 80.0 0.8 0.2 0.6
2012 183.0 28.0 85.0 0.9 0.2 0.7
2013 297.6 32.0 105.0 1.9 0.4 1.5
2014 180.5 32.0 110.0 1.2 0.2 1.0
2015 361.3 35.0 110.0 2.4 0.5 1.9
2016 397.4 44.2 117.0 2.8 0.6 2.2
2017 437.2 47.0 124.3 3.3 0.7 2.6
2018 480.9 50.0 132.2 3.8 0.8 3.1
2019 529.0 53.2 140.6 4.5 0.9 3.6
2020 581.9 56.5 149.4 5.2 1.0 4.2
2021 640.1 60.1 158.9 6.1 1.2 4.9
2022 704.1 63.9 168.9 7.1 1.4 5.7
2023 774.5 67.9 179.6 8.3 1.7 6.7
2024 851.9 72.2 191.0 9.8 2.0 7.8
2025 937.1 76.8 203.0 11.4 2.3 9.1
2026 1030.8 81.7 215.9 13.4 2.7 10.7
2027 1133.9 86..8 229.5 15.6 3.1 12.5
2028 1247.3 92.3 244.0 18.3 3.7 14.6
2029 1372.0 98.1 259.4 21.4 4.3 17.1
2030 1509.2 104.3 275.8 25.0 5.0 20.0
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
34
Following assumptions were made for projecting income generation from Seabuckthorn
cultivation on 2500 ha. Firstly, plantation is phased over a period of 10 years, wherein each
year 250 ha of land is planted. Secondly, Seabuckthorn is planted at 3.0×1.0 m spacing
which accommodate 3300 plants (female: 2970; male: 330) per ha. Thirdly, commercial
yield begins in the sixth year from the date of plantation. Fourthly, each female plant bear 5
kg berry and 80% of the berry is harvested. Fifthly, 0.5 kg leaf is harvested from each mature
plant. Sixthly, cost of cultivation is Rs 1.5 lakh per ha. Other assumptions remain same as
that of Table 4.
Table 5 & 6 display the year-wise harvesting and income generation from cultivation of
Seabuckthorn on 2500 ha. The gross income from berry harvest and its primary processing
would result in income generation to the tune of Rs 446.8 crore per annum in 2030 (Table 5).
Similarly, income generation from leaf harvest from mature plant would result in income of
Rs 169.2 crore per annum in 2030 (Table 6). The net income from harvesting and primary
processing of Seabuckthorn berry and its leaf would be Rs 491 crore in the year 2030. Income
generation will increase many-fold if value added products are also manufactured in the
region.
35
NUBRA LEH
SATELLITE IMAGES OF AREA UNDER SEABUCKTHORN IN LADAKH (RED PATCHES)
36
High yielding selection : One of the basic inputs for Seabuckthorn cultivation is high
yielding plants. One approach for selecting a superior genotype could be screening the
natural Seabuckthorn population for desirable characteristics such as high berry yield, ease
of berry harvest, less thorny, rich in bioactive content etc. Extensive survey was conducted
in trans-Himalayan Ladakh for selection of high yielding genotypes. A total of 187 native
genotypes were selected that yield more than five kilogram berry per plant. Based on
desirable traits, six high yielding genotypes have been further selected. Mass propagation
of the elite genotypes is underway with the aim to promote mass cultivation.
Propagation: Seabuckthorn can also be propagated by seed. However, the method is not
preferred for propagation of Seabuckthorn for commercial cultivation (being a dioecious
species). Successful cultivation of the high yielding genotypes requires efficient vegetative
propagation system. Methods have been standardized for propagation of a pencil thick
(7.5±1.7 mm diameter) hardwood stem cuttings with high rooting success. Use of silver-
black plastic mulching film was found to increase rooting success by 10%. Suppression of
weed emergence by the plastic mulch resulted in 75.8% time saving in manual weeding by
farm workers. In view of the availability of lesser number of a pencil thick stem cuttings per
plant, an improved method of propagation of Seabuckthorn was developed using the
previous season's growth for the stem cuttings (2.9±0.8 mm thickness). Overall, using a less
than half the pencil thick hardwood cuttings resulted in much higher rooting success than
those reported for conventional method of propagation. Seven-fold more number of
cuttings can be taken from each shrub as compared to that of pencil thick hardwood
cuttings. Using the developed propagation methods, a large scale propagation of elite
selections are being carried out at experimental farm at DIHAR. Every year 15,000-20,000
rooted plants are being raised at DIHAR, Leh.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
37
Orchard : A model Seabuckthorn orchard has been established at DIHAR, Leh. High yielding
selections are planted at 3.0×1.0 m spacing which accommodate 3300 plants (female: 2970;
male: 330) per ha. Mulching is used to enhance crop growth in cold desert conditions and for
water conservation.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
Chapter 8 38
39 Chapter 9
SUMMARY, CONCLUSIONS
AND POLICY SUGGESTIONS
Seabuckthorn (Hippophae spp. L.) is an ecologically and economically important plant of
trans-Himalayan Ladakh. The berry harvesting period is short and the return is high. The
price of the berry appreciated from Rs 8 per kg in year 2001 to Rs 45 per kg in 2017. Ladakh
remains the major site for natural Seabuckthorn resource. Despite the vast area under
natural forest, the mean annual berry harvest is less than 5% of the total available
Seabuckthorn resource in the region. Primary processing of fresh Seabuckthorn berry is
being done in Ladakh and various components such as the pulp, seed and hull are sold to
firms located outside the region for further value addition.
This study analyses each link in the value chain of Seabuckthorn in Ladakh region and
recommend ways to effectively use the existing resources for improved marketability of
Seabuckthorn. The study also undertakes missing links that deter cultivation of
Seabuckthorn in the region. The study was carried out through primary and secondary
research. Primary survey involved personal interviews with berry collectors (n=828),
farmers (n=567) and processors (n=5). A structured open ended schedule was used to obtain
data from Leh and Nubra valley. Secondary research was done through available literature
and documents available with research institute (DIHAR) and government agencies.
●Berry is harvested by hand using 'beat the bush' method in September. Harvested
berry is transported to the processing unit.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
40
●Majority of the Seabuckthorn stand is on land under the executive control of Forest
Department. Strict regulation is in force regarding time and method of berry
collection. Berry collection is allowed only during morning hours. Local communities
require permission for berry collection from the Forest Department in the area under
its jurisdiction.
●Primary processing of fresh Seabuckthorn berry is being done at the site of berry
collection and various components such as the pulp, seed and hull are sold to firms
located outside the region for further value addition.
●Majority of the berry collectors are from the needy section of the society and women
constitute 67.4% of the work force.
●The demand for Seabuckthorn far exceeds the supply capacity of the region.
Therefore, Seabuckthorn has the potential to become an important means for
sustainable livelihood in Ladakh.
●Processors are among the most important actors in the value chain. They determine
the price of berry and purchase Seabuckthorn berry directly from the berry
collectors. They also do the primary processing and various components such as the
pulp, seed and hull are sold to manufacturers or commission agents. There are twelve
processors in Leh district.
●Berry collectors are the most valued actors in Seabuckthorn value chain. They harvest
berry from Forest/community/private land. They sell the berry directly to the
processors. Approximately 1,500 households are engaged in berry collection in Leh
district.
41
in other countries such as China, Russia and Canada need to be studied in conditions of
Ladakh.
●Seabuckthorn growing in remote locations are not harvested due to need for
transportation of perishable nature of the berry over a long distance for processing.
There is a need to provide incentives to the processors or Cooperatives for running of
refrigerated vans.
●Over 90% of the Seabuckthorn harvested are sold after primary processing without
value addition. Government support is required in providing incentives for developing
value added products in Ladakh. There is a need to promote Seabuckthorn as a unique
product of Ladakh.
●Market linkage for Seabuckthorn is poor. There are many small players in the value
chain. In order to strengthen the market linkages there is a need to set up a single
window online system for providing information and services related to Seabuckthorn
trade.
●There are few small local entrepreneurs in Seabuckthorn growing areas. They focus
mainly on selling the raw material. Their risks taking capacity is low, and are fully
dependent on demand for raw material. Formation of 'Ladakh Seabuckthorn
Cooperative Society' comprising of all the local entrepreneurs would strengthen their
role in Seabuckthorn value chain.
●There is gap in demand and supply. Demand for Seabuckthorn far exceeds that of the
supply capacity of the region. Government policy is required for converting the dense
Seabuckthorn forest into productive stand.
42
●Vast geographical areas in cold desert are barren primarily due to lack of irrigation.
Area under forest cover is only 0.064% and total cropped area is just 0.2% in Leh
district. Convert the vast barren land into green patch by planting Seabuckthorn.
Focus on Ladakh : Over 70% of the Seabuckthorn natural resource is located in Ladakh.
Developmental activities on Seabuckthorn, therefore, may be focused in Ladakh. The
successful model can then be replicated in other Himalayan region.
Organic certification : Seabuckthorn harvested in Ladakh are wild harvest. For all activities
related to Seabuckthorn, organic certification should be made mandatory.
GI registration : Seabuckthorn of Ladakh origin are wild harvest and believed to be superior
due to climatic conditions of the growing area. Efforts are required for GI tagging of
Seabuckthorn of Ladakh origin.
Value added product : Over 90% of the harvested raw material is currently sold outside the
region. There is an opportunity for development of value added products in the study area.
Hence, government needs to create a favourable environment for the investors through
partial support in the form of subsidies, training and skill development on value added
products.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
43
Convert thick forest into productive stand : Less than 5% of the natural Seabuckthorn
available in Ladakh is being harvested. It is primarily due to thorny nature of the plant in
thick forest. Currently berry harvesting is done only from the periphery of the thick forest.
There is a need of a Government policy for converting the dense Seabuckthorn forest into
productive stand.
Support local entrepreneurs : The local processors are key players in the value chain. They
are in need of financial assistance to create infrastructure facility (cold storage, up
gradation of processing facilities, transportation facilities, etc) to augment their business
prospects. Hence, the banks and government should come forward to provide financial
support in addition to technical support.
Convert barren land into green patch : Vast geographical areas in cold desert Ladakh are
barren primarily due to lack of irrigation. Area under forest cover is only 0.064% and total
cropped area is just 0.2% in Leh district. There is a need for policy to convert the vast barren
land into green patch by planting Seabuckthorn.
Increase raw material : Most of the processors and manufacturers reported non-availability
of raw material for large scale commercial activities. Government support is required for
scientific cultivation of Seabuckthorn. Involvement of private players for large scale
cultivation may also be considered.
Chapter 10 44
Action plan proposed as per existing MIDH guidelines for enhancement of Seabuckthorn
value chain in Ladakh is given below :
45
b. Water harvesting system Rs. 1.8 lakh /unit 50% cost to individuals
with use of plastic lining @
Rs 125/- cum
B.5 Protected cultivation
a. Pa s s i v e g r e e n h o u s e Rs. 2500/Sq.m 100% to public sector;
structure with wall on 50% cost to individuals
north-side suitable for
trans-Himalayan region for
raising of nursery
(recommended by DIHAR)
46
47
Batmunkh D (2013) Some way to develop Sea buckthorn cluster aimed at improving the national
competitiveness of Mongolia. ERINA Report, 114: 39-42
Bindal M, Stobdan T, Kumar B (2016) Seabuckthorn cultivation for sustainable development of
trans-Himalayan Ladakh: Projected income from 2016-2030. In National Seminar on
Conservation and Sustainable Utilization of trans-Himalayan Medicinal Plants, Leh Ladakh, India.
Chauhan K, Khare S, Jain SC (2006) Seabuckthorn (Hippophae) mapping in Ladakh region of
Jammu and Kashmir. In Symposium of International Society for Photogrammetry and Remote
Sensing. Vol XXXVI, Part 4.
Dolkar P, Dolkar D, Angmo S, Kant A, Kumar B, Stobdan T (2017) Sexual differences and seasonal
variations in total phenolics and antioxidant properties in Hippophae rhamnoides leaves. Journal of
Berry Research, 7: 61-69.
Dolkar P, Dolkar D, Angmo S, Srivastava RB, Stobdan T (2016) An improved method for
propagation of Seabuckthorn (Hippophae rhamnoides L.) by cuttings. National Academy Science
Letters, 39: 323-326.
Dwivedi SK, Singh R, Ahmed Z (2006) The Seabuckthorn. Field Research Laboratory (DRDO),
Leh-Ladakh, India, 57 p.
Ichinkhorloo (2017). Results of gap analysis beyond organic Seabuckthorn value chain
(https://issuu.com/temuulen7/docs/gap_analysis_report_of_the_seabuckt)
Korekar G (2013) Genetic diversity of Seabuckthorn (Hippophae rhamnoides L.) in trans-
Himalayan Ladakh region, India (Ph.D Thesis). Jaypee University of Information Technology,
Solan, India
Korekar G, Dolkar P, Singh H, Srivastava RB, Stobdan T (2014) Variability and the genotypic effect
on antioxidant activity, total phenolics, carotenoids and ascorbic acid content in seventeen natural
population of Seabuckthorn (Hippophae rhamnoides L.) from trans-Himalaya. LWT-Food Science
& Technology, 55: 157-162.
Rongsen L (1992) Seabuckthorn: a multipurpose plant species for fragile mountains. ICIMOD
Occasional Paper No. 20.
Stobdan T (2016) Seabuckthorn plantation for sustainable development of trans-Himalayan
Ladakh. In Defence Technology Spectrum. Defence Research and Development Organisation,
Ministry of Defence, India, pp 141-144
Stobdan T, Angchuk D, Singh SB (2008) Seabuckthorn: An emerging storehouse for researchers in
India. Current Science, 94: 1236-1237.
Stobdan T, Chaurasia OP, Korekar G, Mundra S, Ali Z, Yadav A, Singh SB (2010) Attributes of
seabuckthorn (Hippophae rhamnoides L.) to meet nutritional requirements in high altitude.
Defence Science Journal, 60: 226-230.
Stobdan T, Dolkar P, Chaurasia OP, Kumar B (2017) Seabuckthorn (Hippophae rhamnoides L.) in
trans-Himalayan Ladakh, India. Defence Life Science Journal, 2: 46-53
Stobdan T, Korekar G, Dwivedi SK, Yadav A, Targais K, Singh SB (2009) Research on
seabuckthorn (Hippophae rhamnoides L.) in India. In: Advances in Agriculture, Environment &
Health, edited by S.B. Singh, O.P. Chaurasia, A. Yadav, A.M. Rimando & T.H. Terrill. SSPH Delhi,
India, pp. 83-97.
Stobdan T, Korekar G, Srivastava RB (2013). Nutritional attributes and health application of
Seabuckthorn (Hippophae rhamnoides L.) – a review. Current Nutrition & Food Science, 9: 151-
165
Stobdan T, Targais K, Dolkar D, Dolkar P, Angmo S, Kumar B (2015) Seabuckthorn in trans-
Himalayan Ladakh: Primary processing and income generation. In Proceedings of 7th Conference
of the International Seabuckthorn Association, New Delhi, India, pp 14-18.
Stobdan T, Targais K, Lamo D, Srivastava RB (2013). Judicious use of natural resources: a case
study of traditional uses of Seabuckthorn (Hippophae rhamnoides L.) in trans-Himalayan Ladakh,
India. National Academy Science Letters, 36: 609-613.
Stobdan T, Yadav A, Mishra GP, Chaurasia OP, Srivastava RB (2011) Seabuckthorn: The Super
Plant. Defence Institute of High Altitude Research, Defence Research and Development
Organisation, India, p 100.
Value Chain Analysis of SEABUCKTHORN (Hippophae rhamnoides L.) in Leh Ladakh
48
Annexure 1
Views of berry collector and processors on status, benefits and constraints
faced in value chain of Seabuckthorn
The study was carried through personal interviews with berry collectors and
processors. A structured open ended schedule was used to obtain data from berry collectors
(828) and processors (5) from Leh and Nubra valley. Qualified personals (graduates and post-
graduates) were engaged for collection of data from primary sources. Results of the survey
conducted in Leh and Nubra valley among berry collectors and processing unit holders are as
follow:
Table 7: Views of berry collector (n=828) on status, benefits and constraints faced in value
chain of Seabuckthorn
49
Table 8: Views of processors (local food processing unit holders, n=5) on status, benefits
and constraints faced in value chain of Seabuckthorn
50
51
Annexure 2
Views of farmers and berry collectors on status, benefits and constraints faced
in Seabuckthorn cultivation on vast barren land
The study was carried through personal interviews with berry collectors and processors. A
structured open ended schedule was used to obtain data from farmers (567) and berry
collectors (828) from Leh and Nubra valley. Qualified personals (graduates and post-
graduates) were engaged for collection of data from primary sources. Results of the survey
conducted among berry collectors and farmers are as follow:
Table 9: Views of farmers (n=567) on status, benefits and constraints faced in cultivation
of Seabuckthorn on vast barren land
52
Table 10 : Views of berry collector (n=828) on status, benefits and constraints faced in
Seabuckthorn cultivation on vast barren land
1 Do you feel that we should go for 70% (Yes); 3% (No); 27% (No comment)
Seabuckthorn plantation in orchard
system?
If you get double the income from 77% (Yes); 3% (No); 20% (No comment)
2
Seabuckthorn plantation as compare to
traditional cereal crops, will you go for
Seabuckthorn plantation?
3 What are the advantages of 1. Higher income than traditional
Seabuckthorn plantation? (ranking from cereal crops (93.8% respondent)
1 to 9; 1 being the most important
2. No need of plantation every year
advantage)
(89.7% respondent)
3. Seabuckthorn has multiple uses
(fencing, firewood, fodder etc)
(88.7% respondent)
4. Can be grown on barren land (83.4%
respondent)
5. Improve soil fertility (82.4%
respondent)
6. Re q u i r e l e s s water (80.9%
respondent)
7. Require less maintenance (53.4%
respondent)
8. Hardy plant (48.9% respondent)
9. Any other (14.8% respondent)
53
54
Project Team
Sl. No. Name, Designation and Affiliation Role in the Project
Shri Tsewang Phunchok is the Chief Horticulture Officer, Ladakh Autonomous Hill
Development Council, Leh Ladakh. He received his B.Sc in Agriculture from Sher-e-
Kashmir University of Agricultural Science & Technology, Jammu in 1993; and Masters in
Postharvest Technology from Sher-e-Kashmir University of Agricultural Science &
Technology, Kashmir in 2006. He has over 25 years of experience in working closely with
farmers in Ladakh region.