Exploring entrepreneurial opportunities in sea buckthorn sector

Abstract

Sea buckthorn, a store house of important vitamins, is a thorny, deciduous shrubs growing wild in the cold and dry regions of Indian Himalayas mainly in Ladakh (J&K), Lahaul- Spiti and Kinnaur (HP), Kumaon-Garhwal (Uttranchal) and Sikkim /Arunachal Pradesh in the NorthEast region. It is one of the important natural resources of the mountainous regions of China and Russia. The plant grows naturally in sandy soil at an altitude of 1,200-4,500 meters (4,000-14,000 feet) in cold climates, though it can be cultivated at lower altitudes and into temperate zones. Currently only 11500 hectares of land in Ladakh is under Seabuckthorn cultivation. The value of the plant can be seen from the fact that currently the market of Sea buckthorn in China is almost Rs.17000 Crores. China has over 180 products made and sold from the plant. The plant is an important nitrogen fixer and thus helps prevent soil erosion. Apart from environmental value it has nutritional, biotechnological and medicinal value. It is used extensively in Cancer research. Considering that in India it grows mainly in the arid region of Ladakh, Sea buckthorn has immense potential to change the livelihood of the rural Ladakhi populace. From Leh District, Ladakh region, Sea buckthorn pulp worth Rs 1.4 crore has been sold in 2007. This accounts for less than 5% of the potential of the region and, if fully utilized, the shrub can change the entire economy of the region. The unique characteristics of sea buckthorn in improving the fragile ecosystem and socioeconomic upliftment of the rural cold desert region are receiving attention from environmentalists and the Government. Recently The Indian Council of Agricultural Research has recommended a concept note on sea buckthorn under the National Agricultural Innovation Project scheme. The focus of our study would be to explore in depth the potential of developing a sustainable social-business model around Sea buckthorn, much on the lines of Fabindia. Ranging from biotechnological, neutraceutical, pharmaceutical to environmental usage, the known applications of Sea Buckthorn are over 180. We aim to look into the viability of such a project and if found feasible to look for the financial aid that can be garnered from the Government bodies and the venture capital firms. Since the main driving factor behind the success of this project will be complete support from the local community, we aim to understand the sentiments of Ladakhi people for the proposed project. The deliverable will comprise of a detailed study of operational aspect of previously implemented projects supplemented by our recommendations to improve it further. The report will also focus on these improvements and changes in order to ascertain the factors that have a direct impact on the improvement of cultivation of shrubs and marketing of the Sea buckthorn products.