Sultanpur

District Profile

Sultanpur is a city in Uttar Pradesh located on the banks of the River Gomati. It is said to have been founded by Kush, son of Rama, and to have been named after him Kusapura or Kusabhavanpur. This ancient city has been identified by General Cunnigham as Sultanpur mentioned by Hiuen tsang, the Chinese traveller. About 750 years ago Ala-ud-Din Khilji raided Kusabhavanpur and reduced it to ashes and the town of Sultanpur, so called from the rank of the victor, rose upon its ruins.

This town was finally raised to the ground during the military operations connected with the reoccupation of the province in consequence of the inhabitants having been concerned in the murder of British officers at the outbreak of the freedom struggle of 1857. Before annexation a military station and cantonment were established on the right bank of the river in a village then known as Girghit but more commonly called by officials Sultanpur or Chhaoni Sarkar and by the rustic population Kampu or the Cam. The present town of Sultanpur has been developed at this site.

Geographical Area and Location

On the north side of the district is bounded by Ayodhya district; the south side by Pratapgarh district; the west side by Barabanki and Raebareli districts; and the east side by Azamgarh, Ambedkarnagar, and Jaunpur districts. Sultanpur has an average elevation of 95 metres (312 ft). The geography of Sultanpur comprises plain lands, except for some regions around the Gomti River, which drains almost the whole city and district. The southern part of city drains towards the Sai River flowing through Pratapgarh district. The only significant minerals found in the region are in Kanker district. The climate of Sultanpur is semi-arid with very hot summer and equally cold winter season.

Topography & Connectivity

Air: The nearest airport to Sultanpur is Allahabad Airport which is 99 kilometres away. Lucknow Airport is 140 km from Sultanpur and is connected by 4-lane NH 56. Rail: Sultanpur Railway Station (station code: SLN) connects Sultanpur to major cities in India. Road: Sultanpur is connected to nearby cities through the 4-lane Lucknow to Varanasi NH 56 and the 2-lane Allahabad to Ayodhya road. UPSRTC is the major public transport apart from other commercial modes run by private agencies.

Administrative Setup

Sultanpur is the administrative headquarters of Sultanpur District and is a part of Faizabad Division. Sultanpur has now five tehsils of Sultanpur Sadar, Kadipur, Lambhua and Jaisinghpur, baldirai. District has one municipality, five town areas and fourteen development blocks. Important towns are Chanda, Dostpur, Kadipur, Koeripur, Lambhua. Sultanpur is divided into seventeen police stations for the maintenance of law and order.

Potential Areas for Value Added Product

Product Diversification is one of the most crucial product uplifting strategies which in turn is an important part of a product’s export. This plays a vital role in any products exports as it is a product uplifting strategy. Most artisans are not bothered about changing their product range and they fail to understand that it is an integral part of comprehensive marketing. Diversification can be brought in the cluster by:
1. Development of a new products: The artisans of the district should be encouraged to diversify the product categories and must be provided with enough resources to create innovative products without losing the ancestral essence of the craft.The cluster requires more focus on new varieties of these products which are in high demand in the global market. 2. Modifications of Existing Products It has also been found that most of the artisans use no strategy for making modifications to the existing products in the light of design and fusion. The artisans can make fusion products by blending Moonj products with eco-friendly artificial jewelleries.

Industrial profile of the district

Sultanpur is primarily an Agro based region just like any other city in India with primarily focused on Agriculture, Readymade garments & embroidery.

MSME Landscape

Sultanpur is primarily an Agro based region just like any other city in India with primarily focused on Agriculture, Readymade garments & embroidery. The following are the prominent type of industries in the district - According to the above table, the maximum number of units are involved in the repairing and service sector followed by units in Readymade garments and Embroidery.

The industrial Landscape of the district is as follows

S. No Type of Industry Number of Units Employment Investment (Lakhs ₹)
1 Micro & Small 9723 27000 NA
2 Medium & Large 1 350 NA
Sr. No. Type of Industry Number of Units Investment (Lakh Rs.) Employment
1 Agro Based 1244 2170 98.55
2 Cotton Textile 18 72.44 170
3 Readymade Garments & Embroidery 1417 2834 3810
4 Wood/ Wooden Based furniture 411 767 1820
5 Paper & Paper products 30 102.9 268
6 Leather based 14 40.74 140
7 Chemical/ Chemical based 240 482.9 1280
8 Metal Based (Steel Fab) 527 624.1 2590
9 Engineering Units 504 740.2 2770
10 Electrical Machinery & Transport Equipment 710 1902 3670
11 Repairing Services 1680 1840 3400
12 Others 2929 1725 8926

Industrial Infrastructure

Moonj is currently a household level craft, that has the potential to turn into a flourishing cottage industry and eventually light manufacturing industry. Being traditional and an age-old industry it has been taken under the wing of the ODOP initiative. In terms of industrial set-up, there are three industrial areas having establishment of MSME Industries.

In terms of industrial set-up, there are three industrial areas having establishment of MSME Industries.

Sr.No. Name of Industry Land acquired (In Acre) Land Development (in Acre) No of Plots/ Sheds
1 R.I, E Sultanpur 6.67 12 17 plots, 05 sheds
2 Mini Industrial Estate, Kureshav 3.36 03 74 plots
3 Mini Industrial Estate, kadipur 2.67 Nil 45 plots
Total 12.70 15 136 plots, 05 sheds

Major Exportable Product from Sultanpur

The chapter focusses on the export scenario of India and Uttar Pradesh and then deep dives into the export statistics of Moonj products code 460219, Basketwork, wickerwork, and other articles, made directly to shape from vegetable plaiting materials stating the target countries for market expansion for both the products. Annual Exports of basketwork from Uttar Pradesh is around INR 42 Lakhs approx. The total export from Sultanpur is approximately IN 590.25 Crore for the period September 2020 to November 2021. Moonj does not fall under the category of exported products in Sultanpur. The following table depicts the value of export of major products from Sultanpur:

Major exportable product

The following table depicts the value of export of major products from Sultanpur:
S. No Product Export value (in INR) from September2020 to November, 2021
1 Non-Basmati rice -
10063010 - RICE PARBOILED
10063090 - RICE EXCPTG PARBOILED (EXCL BASMATI RICE)
17.15 Cr.
2 10063010
WHEAT
170 Cr
3 88033000
OTHR PRTS OF AEROPLANES/ HELICOPTERS
389 Cr
Total Export from Sultanpur* 590.25 Cr2
Product 1: Moonj Craft

Moonj is the out layer of a type of grass called ‘Sarpat’.

Cluster Overview

Around 1.5 lakh people are engaged in working with material made of moonj in the district. It is used for making a variety of products including ropes, weaved cots, etc. Rope Weaved cots are ready to use and give remarkable traditional and ethnic look also. These cots are easily portable, storable, and durable. This is a domestic cottage industry. Moonj products are made without using any advanced equipment or technical knowledge. Around 2 to 3 kilograms of badh is made by each worker every day. On an average, 3 to 3.5 lakh quintal badh is produced per month. Moonj is the out layer of a type of grass called ‘Sarpat’. This layer is peeled off and knotted it is easy to dry, dying and store. These knots are locally called” Bhalla”. This Sarpat is available for the preparation (process) of raw material from Dussara Festival to Deepavali festival. Kasa Grass collected from the roadsides and agriculture fields. This is also the raw material used in making of Moonj products. Nearly 500 artisans are practicing the Moonj craft. All most all the women artisans are practicing this craft “Moonj”. Normally Family member except young men and boys are practicing the craft. Muslim artisans in majority are practicing the craft.

Product profile

Moonj products were more attached in the families of Sultanpur district. But mainly a major number of artisans primarily women artisans practice this craft up to the processed raw material available. This craft was practicing nearly 80 years. Many women are practicing this craft for their skills increase and better livelihood.;

Product Portfolio

The motifs of basketry are created by adding coloured grass in between. The Moonj coiled grass products are ideal to serve daily life purposes. These natural products can be used as containers, food storage devices and wall decorators. The products are very simple, attractive, and eco-friendly. ;
The market is flooded with a variety of products made from moonj like basket (daliya), coaster stand, bags, decorative items and more. Eco-friendly moonj products have the potential to do well in the national as well as international markets.

Cluster Stakeholders

Cluster Stakeholders

Industry Associations

There is no specific industrial association in Sultanpur related with Artisans and Manufacturers of Moonj Products.;

Export Scenario

The export of Moonj product from District Sultanpur is negligible. India is not exporting much amount of product from this category. The Export of this product from the district would start substantially after implementation of intervention over the span of next 5 years.

HS code

Current Scenario The export scenario of India and Uttar Pradesh have been analysed basis the export statistics of HS code mentioned above under which Moonj products are exported. There are no specific HSN Codes which may be used for Exports of Moonj products, but here analysis of one prominent HSN code has been done. Alongside are the key facts pertaining to the analysed product codes. ;

HS codes for Moonj Craft

There are no specific HSN Codes which may be used for Exports of Moonj products, but here analysis of one prominent HSN code has been done. HS codes under which the product is exported from the district:
HS codes Description
460219 Basketwork, wickerwork, and other articles, made directly to shape from vegetable plaiting materials

Export Potential


► The total export of this product from Sultanpur district was negligible in year 2019-20.
► The cluster has tremendous export potential, but owing to lack of proper market assessment mechanism, changing product types, specific demand preferences the export is very less.
► Hence, it was pointed out that the proper study of the foreign market, region specific demand patterns to be ascertained. Along with that, a common platform to be created where there can be integration between the exporters and importers, thereby making the export ecosystem robust and effective.
► These products do not have specific HSN codes. Based on stakeholder consultations, following HSN codes were mentioned for the product. Product 460219: Basketwork wickerwork and other articles, made directly to shape from vegetable plaiting materials India's exports represent 1.7 % of world exports for this product, ranking it number 7. The value of India’s exports has gradually increased since 2015-2019, There has been an increase by CAGR 44% in the past 5 years, and as per data FY 2015-19 for exports from India. India exported USD 19,889 Thousand values of Basket work products in 2019. In 2019 the top exporters of Basketwork were China ($743Mn), Vietnam ($132Mn), Netherlands ($40Mn), Poland ($23Mn), Germany ($22Mn), Indonesia ($20Mn) and India ($19 Mn). Being in the same region, India is primarily in competition with China who clearly dominates the world market including 63.9% of world exports. Uttar Pradesh exports this product to USA, France, Canada, Sweden, Denmark, and Netherland.
For boosting exports, there needs to be two-pronged strategy for targeting markets: Immediate Priority Markets These are those countries where proper marketing efforts will unlock the potential of that country in very short period.
► FTA markets: India enjoys FTA agreement with Republic of Korea and Japan. FTA markets are very lucrative as in these markets our exporters pay reduce tariff rate as oppose to other nations, Exporters should be made aware of the product type in this segment which are in great demand in these markets. Additionally, exporters need to be made aware about quality requirement, labelling and packaging standards of these countries to boost exports. The Japanese culture also puts great value into the packaging of a product as much as the quality of the product and Moonj can be developed as a high-quality packaging material. Similarly, India should also target Singapore as India has an FTA with ASEAN of whom Singapore is a member.
► High Growth Markets: Indian exporters should target high growth market such as UAE (40%), and Oman (73%) where demand of this product category is increasing, and the quality requirements are also less. Long-Term Priority Markets The following countries come under Long-term priority market as these are those markets where the untapped market potential can only be fulfilled if Indian exporters comply and raise the quality of the product to the highest standards and major efforts is required in marketing which will require time to accommodate the same.
► Increase its market share in existing market: France is one of the major importing countries (4th Largest) of the world in this segment. UP exporters should target this market more as it is one of the highest growing markets (16%) in acceptance of this product. Although, since France is a part of EU, exporters need to be made aware about quality requirement, labelling and packaging standards.
► Australia: Australia is a long-term priority market. Major issue to cater this market is high quality requirements and freight rates. Additionally, presence of Indian diaspora makes Australia a highly lucrative country for export.
► Countries in European Union: As mentioned earlier, France is a long -term priority market as it is a major importing country of this product in the world. Additionally, Netherlands, Italy and UK are other lucrative markets as the people here are willing to pay extra money for handmade and sustainable products.

Markets Origin Destination Analysis

The above figure displays the flowchart of movement of goods from raw material to destination, it can be also be inferred that majority of transport distance is covered by road. Hence, road freight rates incentives are critical for export boost from UP. Top Ports used by Uttar Pradesh for the selected product’s transport

Product 2: Agriculture Products (Non-Basmati Rice)

The state is a leading producer in agriculture products like rice, wheat, sugarcane etc. The economy of the cluster is heavily dependent on agriculture products. Approximate Export turnover of the Rice is INR 17.15Cr.

Cluster Overview

The state is a leading producer in agriculture products like rice, wheat, sugarcane etc. The economy of the cluster is heavily dependent on agriculture products. Approximate Export turnover of the Rice is INR 17.15Cr.

Product Profile

Rice: Any rice other than Basmati Rice is named as non-Basmati rice. In the world it has been reported that there are over10,000 varieties of rice and out of which the maximum number are in India.

Product Portfolio

Rice: Multiple varieties of rice exist including short-grain, medium-grain, and long-grain varieties.;

Cluster Stakeholders (Rice)

Rice

Industry Associations (Rice)

Following are principal Industry Associations that are working for the development of Rice:
► Agriculture and Processed Food Products Export Development Authority (APEDA)
► Indian Industries Association (IIA)
► Rice Export Promotion Forum (REPF)
► International Rice Research Institute (IRRI) - world’s premier research organization dedicated to reducing poverty and hunger through rice science; improving the health and welfare of rice farmers and consumers; and protecting the rice-growing environment for future generations
► National Rice Research Institute, Cuttack (NRRI) - The National Rice Research Institute is in Cuttack in Odisha state. The basic objective of institute is to conduct basic, applied, and adaptive research on crop improvement and resource management for increasing and stabilizing rice productivity in different rice ecosystems with special emphasis on rainfed ecosystems and the related abiotic stresses
► U.P. Council of Agricultural Research (UPCAR) - The UPCAR is an autonomous apex state organisation registered as a society, which plans, co-ordinates and promotes research, education, training, and transfer of technology for advancement of agriculture and allied sciences. The UPCAR was established on June 14, 1989, with its headquarters at Lucknow.
► Agriculture Department
► Krishi Vigyan Kendra (KVK) ;

Export Scenario

The export scenario of World and India have been analysed basis the export statistics of HS code 100630 (Semi-milled or wholly milled rice, whether or not polished or glazed) under which non-Basmati rice is exported from Sultanpur district.

HS Code

Current Scenario The export scenario of World and India have been analysed basis the export statistics of HS code 100630 (Semi-milled or wholly milled rice, whether or not polished or glazed) under which non-Basmati rice is exported from Sultanpur district. Alongside are the key facts pertaining to the analysed product code. India’s export compared to world is very low (approximately 29.76%). ;

HS code under which the product is exported from the district.

HS Code Description
100630 Semi-milled or wholly milled rice, whether or not polished or glazed

Export Potential

Rice: HS Code 100630 (Semi-milled or wholly milled rice, whether or not polished or glazed)
► The total exports of product from Sultanpur district as per HS code 100630 are around INR 17.15 crores in the period September 2020 to November 2021.
► India's exports represent 29.8% of world exports for this product; its ranking in world exports is 1.
► India exported this product to Iran, Indonesia, Malaysia, Bangladesh, Yemen, China, Saudi Arabia, Sri Lanka, USA, Nepal etc. Below figure shows the top importers for this product (100630) in the world:

Potential Areas for Value Added Product

Rice: Product Diversification is one of the most crucial product uplifting strategies which in turn is an important part of a product’s export. Currently, only the grains of rice are being sold directly in the market. Knowing the health benefits of the product an initiative can be made for product diversification to manufacture value added products such as chiwda, poha, brown rice, rice noodles, idli & dosa batter. The broken rice can be used to create flour. Rice flour is gluten-free; therefore, it is an alternative for producing gluten-free products. Rice flour is also hypoallergenic. Thus, it can be utilized for producing baby food, puddings, and other food products. Due to the decreased risk for people with sensitivities, food companies prefer rice flour to other varieties of flour. Thus, it is economically justifiable to grind broken rice to produce flour for such applications.
With adequate up gradation of technology in the cluster the farmers/ millers can sell by-products and generate additional income by manufacturing by-products from Rice Husks, Brans and Straws; the following are their uses: