Basti

District Profile

The city of Basti is situated in Eastern Uttar Pradesh, in between Ghaghara and Amy river, about 180 Kms east of Lucknow. It’s a part of the Basti division.

Basti was originally known as Vaishishthi. The origin of the name Vaishishthi is attributed to the fact that this area was the ashram of Rishi (sage) Vashistha in ancient period. Rama with his younger brother Lakshmana had been here for some time with Rishi Vashistha.

Geography

Total area of Basti district is 2688 Sq. Kms. The latitude of Basti city 26.23 and 27.80 N and longitude of Basti city 82.17 & 83.2 E. It is surrounded by Siddhartha Nagar district in North, Sant Kabir Nagar district in east, Gonda in west and Faizabad district in south. The length of district from south to north 70 Kms and west to east 85 Kms.

Topography & Agriculture

The topography of Basti district is comprises of Alluvial Soil, sand and gravels. Entire district has plain land and flow of water is from north to east. The main rivers of district are Ghaghara, Manorama & Kuwano. In Basti district the forest area is 4,092 hectares. Net area sown 1,49,041 hectares, cultivable area 2,04,346 hectares. As far as the farm of natural vegetation in Basti is concerned, there are various types of trees like sagaon, haldu, sal, shisham, tibau, mahuva, bamboo, neem, jamun, mango etc.

Industrial profile of the district

The following table depicts the key industries of the district:2

Table 1: Prominent industries of the district(MSME+ large)

Industry Functional Units Employment Investment (INR Cr)
Food manufacturing/ processing 2,045 10,972 65.12
Repairing and servicing 1,735 5,076 14.12
Wood and wooden based furniture 842 2,827 4.41
Hosiery & Garments 563 2,229 10.25
Paper Product & Printing 130 514 11.41
Metal Products 298 969 2.45
Chemical & Chemical products 124 478 2.92
Rubber & Plastic products 88 393 2.26

Major Exportable Product from Basti


Table

S.No. Product Export value (in INR) from September 2020 to November, 2021
1 Wood craft Indirect Exports from District
2 Rice 19,88,26,760
Product 1: Wood Craft

Cluster Overview

India has a tradition of wood carving initially for making temples, forts etc. Later on the skill of carving and other ornamentation on wood introduced in door frames, furniture’s and other items. U.P has glorious past of high skills wood carving artisans and few most important craft pockets of wood carving developed in U.P. Out of these pockets, Saharanpur and Nagina in Bijnor district have created their space in domestic as well as overseas markets. Apart from above every district is having furniture making, door/window making industries for catering local demands. District of Basti is an important pocket of wood craft. Shikandarpur, a town in block Parshrampur has established pocket of wood craft. The craft also spread to nearby villages i.e. Dhangawkala, Ranipur, LaxmipurKarghna, Raipur and Dhangwakhurdand, Bed lines and other decorative items. Their products are so popular that besides local market they are supplying to nearby districts like Faizabad, Gonda, etc.

Product profile

Carpenters are making traditional items like door/window frames and doors on contact basis. They obtain desired wood of required sizes from local Saw mills and prepare the items using their tools. For furniture making, the manufacturers buy various parts of items prepared from lathe machine available with local saw mills. By joining various parts they give shape to furniture item. Plywood used for seats. For beds/deewans ply boards are used. Polishing /painting on prepared items done by different workers at the last.

Product Portfolio

Product range includes sofa set, dinning set, divan, dressing table, chairs etc. In other category woodwork comprises doors, windows, frames, wardrobe, modular kitchen, counter tables, computer tables etc. In some area carving on door frames are also made.;

Cluster Stakeholders


► Raw material supplier
► Artisans/ Carpenters/ manufacturers
► Units & unitholders
► Financial institutions
► MSME- DI, DIC etc.

Export Scenario


HS code

;

Table 2: HS code- wood craft

HS Code Description
940360 Wooden furniture (excluding for offices, kitchens and bedrooms, and seats)
441400 Wooden frames for paintings, photographs, mirrors or similar objects
940169 Seats, with wooden frames (excluding upholstered)

Current Scenario


► Among the major exporters of wooden furniture are China, Vietnam, Poland, Malaysia, Turnkey and Germany.
► The value of current global wood market is around USD 624.22 billion in 2020 and expected to grow at a CAGR of 6.8% in 2021. Whereas, the global wooden furniture market size is estimated to be at USD 545.78 billion in 2020 and expected to grow at a CAGR of 5.4% from 2021-27
► The Indian wood craft industry is one of the fastest growing industries of the Indian economy. India has around 100,000 registered woodware units and more than 200,000 craftsmen along with countless other woodworking related units in the sector
► India is currently exporting to more than 131 countries in the world including USA, Germany, Netherland, France, United Kingdom, Australia, Belgium, Canada, Spain and United Arab Emirates
► The wood craft clusters of UP have around 6000-7000 units employing around 1,20,000, people directly and indirectly generating a turnover around INR 1,015 Cr combinedly. Clusters like Bijnor and Saharanpur also undertake exports to a large extend ;

Export Potential

Product 1(940360): Wooden furniture (excluding for offices, kitchens and bedrooms, and seats) The below figure shows the key importers of this product for the above mentioned HS code: The potential markets for India and the cluster to tap have been identified as follows based on Signed FTAs, High Growth Markets, Untapped Potential the countries which India is exporting but UP isn’t. Thus, the following countries should be targeted to increase the sales and turnover of the cluster: Product 2 (441400): Wooden frames for paintings, photographs, mirrors or similar objects The below figure shows the key importers of this product for the above mentioned HS code: The potential markets for India and the cluster to tap have been identified as follows based on Signed FTAs, High Growth Markets, Untapped Potential the countries which India is exporting but UP isn’t. Thus, the following countries should be targeted to increase the sales and turnover of the cluster. Product 3 (940169): Seats, with wooden frames (excluding upholstered) The below figure shows the key importers of this product for the above mentioned HS code: The potential markets for India and the cluster to tap have been identified as follows based on Signed FTAs, High Growth Markets, Untapped Potential the countries which India is exporting but UP isn’t. Thus, the following countries should be targeted to increase the sales and turnover of the cluster. ;

Potential Areas for Value Added Product

The following could also be manufactured: home décor, lifestyle and utility product along with toys. Further, the artisans should be trained to create designs according to the customer base of a region. For example, the artisans should be trained on creating Persian designs and patterns while responding to orders from countries like Iran, Iraq, Afghanistan, Tajikistan, Uzbekistan etc., this will help in market penetration and will also increase the list of countries UP can cater to.

Product 2: Rice

Cluster Overview

The district belongs to the north Gangetic plains which fosters the production of large quantities of rice. The district is one of key rice producing areas of the state with 122.176 ha area under production, 316.82 Mt production and the productivity of 25.931 qtl/ha.

Product Profile

Any rice other than Basmati Rice is named as non-Basmati rice. In the world it has been reported that there are over 10,000 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


► Farmers
► DIEPC
► KVK
► Seed suppliers
► Financial Institutions
► Agriculture department

Industry Associations

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)
► Participatory Rural Development Foundation (PRDF) - PRDF is a Gorakhpur based philanthropic organisation founded Dr. Ram Chet Chaudhary, a leading Agri-scientist working for the benefit of farming community of North India
► 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 located 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) ;

HS Code

HS codes under which the product is exported from the district. ;

Table 5: HS code- Rice

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

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 the district, state and India Alongside are the key facts pertaining to the analysed product code. ;

Export Potential

Product 1(100630): Semi-milled or wholly milled rice, whether or not polished or glazed
► The world exports for the product category amount to 20,631,291 USD Thousand in 2020
► India's exports represent 36.3% of world exports for this product, its ranking in world exports is 1.
► India exports this product to Iran, Indonesia, Malaysia, Bangladesh, Yemen, China, Saudi Arabia, Sri Lanka, USA, Nepal etc. USA, Nepal etc. Below figure shows the top importers for this product (100630) in the world: The potential markets for India and the cluster to tap have been identified as follows based on Signed FTAs, High Growth Markets, Untapped Potential the countries which India is exporting but UP isn’t. Thus, the following countries should be targeted to increase the sales and turnover of the cluste.

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 upgradation 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: Rice Husk Use
► Fuel
► Gaseous Fuel
► Husk Briquette
► Husk Board
► Furfural Rice Bran Use
► Edible grade oil
► Industrial grade crude oil
► Free fatty acid manufacture
► Plasticizers
► Tocopherol
► Rice bran wax