Sikkim : Trade and Commerce

Sikkim : Trade and Commerce

Sikkim is one of the fastest growing states in India. The state has favorable agro-climatic conditions, which support agriculture, horticulture and forestry. As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) expanded at a compound annual growth rate (CAGR) of 19.44 per cent to US$ 2.75 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 19.11 per cent to US$ 2.33 billion.

The State Government has achieved remarkable progress in the core areas of agriculture, health, education and development in infrastructure. Today, Sikkim is the most talked-about state in the Country.

Sikkim has evolved as a progressive State with marked improvements in socio-economic indicators, despite facing the disadvantages of inadequate connectivity, high cost of infrastructure building and maintenance, difficulty in delivering services to dispersed populations in hilly areas.

People of Sikkim engage in different economic activities, prominent among which are Tourism, Industries, horticulture & agriculture etc. giving rise to a definite occupational structure. Major contributions to the economy are provided by sectors like Agriculture, Horticulture, Forest, Mining, Industries, Power, Tourism, Aqua Culture and  Livestock etc.

Agricultural economy

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, oil seeds, pulses, spices, cereals barley, oranges, tea and cardamom.

Agriculture is vital to the progress of Sikkim as more than 64% of the population depends on it for their livelihoods. The Sikkim AGRISNET is an internet-based agriculture information centre to promote scientific agricultural methods and convert research into practice in the agricultural sector. Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. The surveyed arable land in Sikkim is 109,000 ha, of which only 9.5% is used, this provides a vast untapped potential for development. The state government is also laying emphasis on improving organic farming in the state.

Agriculture is the major economic activity and is practiced on terraced field that has been laboriously created from steep hillsides. There are in all 689 enterprises that have been identified, which are mostly concentrated in rural areas.

Sikkim is the largest producer of cardamom and also boasts to utilize largest area for its cultivation. Tea is exported to USSR & Germany. A coffee plantation has also been started at Majitar.

The  economy broadly depends on the agriculture which provides livelihood to the majority of population in the state. However, it’s progress remained limited due to difficult topography and other natural barriers. As a result all head sectors related to agriculture emerged, government is doing its best to improve the situation.

Horticulture

Horticulture also contributes to the economy of  Sikkim. Large Cardamom, ginger and turmeric are the principal crops while Mandarin orange, guava, mango, banana and so on are the principal fruits grown in the state. The department of Horticulture is deeply involved in motivating and providing technical guidance to local farmers. Sikkim is also a paradise for flowers. Gladioli, anthuriums, lilliums, primulas, rhododendrons, orchids as well as many other floral species thrive here. The state is home to an amazing 450 species of exotic orchids alone. There is immense potential for developing floriculture on a commercial basis here, and the department of Horticulture is making concerted efforts to turn this sector into an export-oriented industry.

Forest

Sikkim has rich bio diversity and thus provides economic activities. The total land area managed by and under administrative control of Forest Department is above 80% of the total geographical area of the state. The composition ranges from tropical Dry Deciduous Forests with Sal and its associates in the valleys of Teesta and Rangit to the Alpine Scrub and Grasslands in high altitudes. During the two last decades Forest Department has laid emphasis on development of fodder and fuel wood in the agriculture fallow lands of the villagers giving priority to plantation of broom grass for fodder and for economic up liftment of the villagers.

Aqua Culture

Pisiculture is an important area of economic activity particularly in the context of enabling the rural people. The state’s natural resources endowments with an extensive network of freshwater rivers, lakes and streams offers conditions which are conducive for development of inland fisheries where a variety of carps and trout’s can thrive. With a view to exploit these natural resources endowments.

Sericulture

Mulberry, muga, eri and  oak-tussar are cultivated in Sikkim. The Sericulture Directorate is responsible for development of sericulture in Sikkim. The sericulture potentiality of Sikkim state has been explored jointly by the State Department and Central Silk Board, through launching a flagship programme titled Catalytic Development Programme. Over the years with consorted efforts from the both ends (state and central governments), considerable success have been achieved by the state sericulture industry in generating employment. Raw silk production in the state increased from 0.20 metric tonnes in 2013-14 to 6.0 metric tonnes in 2015-16.

Livestock

Animal Husbandry provides an additional source of income to the people. Animal husbandry form an extremely important element in the effort to bring about substantial improvements in living standards. The overall area available for agriculture operations is limited to about 15% of the geographical area of the state and with the increasing population, per capita land availability has been consistently declining, it is therefore, essential, that supplementary sources of income should be developed in order to provide not only the much needed support to the rural families but also to make available in increasing quantity, protein rich food items such as milk, egg, and meat. Adequate number of livestock like cattle, buffaloes, pigs, sheep’s, goats, yaks and few other are reared in Sikkim. Yaks are reared in north eastern ranges bordering Tibet, Bhutan and western region bordering Nepal.

Industries and Mining

The Commerce and Industries Department of Sikkim is involved in promoting trade and industry in Sikkim. The Sikkim Industrial Development & Investment Corporation Limited (SIDICO) is the state-level institution engaged in promoting, financing and developing the tiny and small scale industries (SSI) sector in the state.

Brewing, distilling, tanning and watch making are the main industries located in the southern regions of Sikkim. A small mining industry exists in the state, extracting minerals such as copper, dolomite, talc, graphite, quartzite, coal, zinc and lead. Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with provision for giving land to investors on a lease basis.

The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam mattresses, food products, iron rods, etc. Sikkim has identified agro-based industries, horticulture and floriculture, minor forest-based industries, animal husbandry and dairy products, tourism-related industries, IT including knowledge-based industries, precision oriented high value-low volume products, hydro-power, tea, education and hospitality as thrust sectors. The Information Technology (IT) Department, Government of Sikkim is in the process of setting up a state-of-the-art IT Park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong.

Pharmaceuticals

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labor costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. The North-East Industrial and Investment Promotion Policy, 2007 and the pollution free atmosphere are highly beneficial for pharma investments in Sikkim. Some of the policy incentives are: 100% excise duty exemption on finished products. 100% income tax exemption. 30% capital investment subsidy on investments in plant and machinery.

The policy of framework in regard to industrialization in Sikkim has to be formulated keeping in mind the particular factors endowments that the state has the limitations in regard to resources, particularly, minerals and industrial raw materials as well as man power. The state is not so rich in mineral resources and apart from the deposits of copper, lead and zinc, no other viable and exploitable mineral deposits have so far been discovered. While on the other hand the state enjoys a tranquil climate, a dust free atmosphere and peaceful industrial entrepreneurial talent, has also to be taken note of. In regard to industrial development, a number of small and medium units have been promoted in the state. For example, The Sikkim Time Corporation (SITCO) and Government Institute of Handicraft and Handlooms.

Mining

The state of Sikkim is endowed with rich geological resources. The department of mines and geology has been responsible for exploration and establishment of mineral resources, with the object of developing commercially exploitable mineral resources. Moderate to fair amount of success has been achieved during the investigation carried out by different agencies in certain sectors namely dolomite, coal, quartzite, graphite, lime stone, silliminite, talc, mineral water, thermal springs, building stone and materials for porcelain.

Tourism

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

Sikkim was the first to promote the concept of eco-tourism, village tourism and home stay tourism in the country. This essential concept promoting man-nature affinity has been recognized as a new model of tourism. Today, Sikkim is already on the national and international tourism map.

Sikkim has been featured and ranked 17th in the New York Times “52 best places to go in 2017”. Similarly, Sikkim has also been featured as the best destination to visit in the world in 2014.

The Year 2017 has been declared as the Year of Sustainable Tourism for Development, an area of development in which Sikkim has already made considerable strides with eco-friendly tourism and the development of innovative initiatives such as Chaar Dham and Tathagatha Tsal. Additionally, Gangtok City has been recognized as the safest tourist destination in the country.

Keeping nature at the backdrop, the State Government proposes to promote tourism mainly through nature based tourism. Few activities which are proposed include, Rock Art Sculpture, Folk Healing Center and Yoga Sthan. In the niche Tourism Sector, facilities such as golf courses, water sports etc, are being proposed.

A priority has been given to create mega projects, one example of which is the Sky Walk at Bhaleydunga. The Ropeway to Bhaleydunga, currently under progress is expected to be completed in 2 years time. Today, Sikkim having been featured in leading International Journals and magazines, has become one of the most sought after destinations and caters to all types of tourists. Film tourism is also catching up fast with the support of the government, as many recent film shoots by popular Bollywood artistes in the state takes place.

Through sustainable forest management practices and massive afforestation drives, about 72.60 lakh saplings have been planted till date under the State Government’s flagship programmes such as Smritivan, State Green Mission, Ten Minutes to Earth and Paryavaran Mahotsav. The forest and tree cover of the State has increased by about 4% over the last two decades from 43.95% to 47.80%. The State Government has also banned the use and sale of disposable Styrofoam products, prohibited the burning of tyres, agricultural waste, use of packaged drinking water bottles, bursting of crackers in Sikkim which are first such prohibitions imposed in the entire world.

The declaration of the Khangchendzonga National Park as UNESCO’s World Heritage Site on 17th July, 2016 at Istanbul, Turkey, is a testimony to the tireless efforts of the government. The Khangchendzonga National Park has also been declared as one of the 100 top Green Destinations of the world for the second consecutive time. In addition to this, the State Government is also proposing to develop a world class Biodiversity Park and Ecotourism Centre at Tendong, South Sikkim.

The State Government has now prioritized the construction of a Ropeway from Pelling to Sangacholing Monastery in West Sikkim connecting the landmark statue of Lord Chenrezig, that is near completion, to Pelling. This project along with the Statue of Lord Chenrezig would be a great value addition to tourism in boosting tourism footfall in the State. The boost in the tourist footfall is very encouraging as Sikkim hosted over 8 lakhs tourists in 2016 alone.

Major initiatives taken by the government to promote economy of the state

The state government launched Sikkim AGRISNET, an internet-based agriculture information centre, to promote scientific agricultural methods and convert research into practice in the agricultural sector.

The Government of Sikkim has placed information technology high on its agenda. The budget allocation for information and broadcasting is expected to be US$ 0.96 million during 2015-16.

Pharmaceutical is an emerging industry in Sikkim due to tax incentives offered by the state government as well as low manufacturing and labour costs. Sikkim is home to 14 major pharma companies, which have significant investments in the state. These include Cipla, Sun Pharma, ZydusCadila, Alembic, IPCA, Alkem Lab, Intas Pharma, Torrent Pharma and Unichem.

The Sikkim government has announced a technical collaboration with floriculturists from the Netherlands and Thailand to develop the state’s potential in floriculture and market cut flowers from the state globally.

The Department of Information Technology, Government of Sikkim is in the process of setting up an IT park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong. The IT Park will have state-of-the-art facilities that will offer a plug and play environment and cater to the specific needs of the information technology and business process outsourcing (BPO) segments.

In order to give a boost to handloom and handicrafts sector, the Government of Sikkim has been making several efforts, which include providing training to upgrade the quality and designs of the products; bringing expertise and professionals for their marketing and supply, etc.

The Sikkim Government plans to set up Tea Development Corporation of Sikkim, which would be the nodal agency for developing the tea Industry in Sikkim. It would work to expand the Temi tea estates in the state and acquire new gardens either wholly or partially owned by the government.

The Sikkim Manipal University (SMU), a partnership between the Government of Sikkim and Manipal Education and Medical Group (MEMG), provides technical, healthcare and science education. It is rated as one of the top universities in the country.

The State Government is very concerned with the youth populace and therefore, has laid special emphasis to skill the youth and to make them employable and self-dependent so that they can lead a life of self-respect and confidence. A separate Department of Skill Development & Entrepreneurship and Capacity Building therefore has been setup with its network of the State Institute of Capacity Building, Livelihood schools, Industrial Training Institutes, Kaushal Kendras and Incubation Centres for skilling the youth. These initiatives aim at creating opportunities for self-employment, for industrial wage employment, and community based employment as Social Entrepreneurs.

Till December 2016, a total number of 10,151 trainees have been trained in sectors such as Beauty & Wellness, Tourism & Hospitality, Apparel, Homestay, Driver cum Tour Guide, Primary Teacher Training etc. An Atal incubation centre has been approved by the Ministry of Skill Development in Assam Lingzey. Two more incubation projects for the distillation of lemon grass oil has been set up in Kerabari, South Sikkim, and Timberbong, West Sikkim, under the Rastriya Krishi Vikas Yojana.

Sikkim : Tax and Economic Reforms

Sikkim : Tax and Economic Reforms

The economic liberalization in India , initiated in 1991, with principles of Liberalization , Privatization and Globalization (LPG) of the country’s economic policies, with the goal of making the economy more market and service-oriented and expanding the role of private and foreign investment. Specific changes include a reduction in import tariffs, deregulation of markets, reduction of taxes, and greater foreign investment. Liberalization has been credited by its proponents for the high economic growth recorded by the country in the 1990s and 2000s. And it has positive impact on the state of Bihar as can be visibly seen from various sectors.

India’s GDP has increased thereafter and also  the GSDP of state has increased many folds.  Between 2004-05 and 2015-16, Gross State Domestic Product (GSDP) of Sikkim has expanded at a compound annual growth rate (CAGR) of 19.44 per cent to US$ 2.75 billion whereas the Net State Domestic Product (NSDP) expanded at a CAGR of 19.11 per cent to US$ 2.33 billion.

Agricultural Sector

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, barley, oranges, tea and cardamom. Sikkim produces more cardamom than any other Indian state, and is home to the largest cultivated area of cardamom

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80 per cent to India’s total production.

As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Organic Farming

Sikkim has been transformed as the first Organic State of the country and the world by design and have opened unlimited opportunities in sectors like Agriculture, Horticulture and Animal Husbandry.

Industrial Sector

Industries plays an important part to the development of the state. State government has taken various measures to provide impetus to the growth of the economy.

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. The overall performance of the economy of the state during 2015-16 was encouraging. At a CAGR of 33.91%, the secondary sector witnessed the fastest growth among the three sectors during 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply. In 2015-16, the secondary sector contributed 67.73% to the state’s GSDP at current prices.

The state follows the North East Industrial Investment Promotion Policy, 2007, which provides several incentives and concessions for investment. Institutional support is provided through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Commerce and Industries Department.

The main industries like Brewing, distilling, tanning and watchmaking are located in the southern regions of Sikkim.

Tertiary sector

State government has implemented various policies to increase the growth rate of Tertiary sector. Various policies like IT Policy , Tourism Policy gives impetus for the growth of the services sector and hence development of economy. Industrial sector contributes majorly to the development, followed by the tertiary sector at 23.65% and primary sector at 8.62%. The tertiary sector grew at a CAGR of 15.23% between 2004-05 and 2015-16. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The primary sector grew at a CAGR of 15.55% between 2004-05 and 2015-16.

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

 

Total Receipts and Total Expenditure

For the fiscal year 2017-18, a gross expenditure of Rs. 6364.02 crores has been projected in the budget.

After taking into account recoveries amounting to Rs. 142.20 crores, the net expenditure comes to Rs. 6221.82 crores.

The fiscal deficit remains in adherence to the fiscal management targets set in the Sikkim Fiscal Responsibility and Budget Management Act, 2010, i.e. not more than 3% of GSDP. The contribution from total tax revenue is of the order of Rs. 669.51 crores and in the case of Non-Tax revenue, Rs. 426.46 crores.

The total gross expenditure includes allocations amounting to Rs. 81.76 crores under the dispensation of the North Eastern Council, Rs. 153.66 crores under Non Lapsable Pool of Central Resources, and Rs. 1326.76 crores under Centrally Sponsored Schemes.

In Union budget, the distinction between Plan and Non-Plan has been done away with from the year 2017-18 onwards. This has been done as a measure towards bringing about major fiscal and budgetary reforms while retaining the distinction on the basis of Revenue and Capital expenditures. Since the Union and the States have to work together on the methodology, State has also adopted the same system from the financial year 2017-18 budget.

Tax proposals

Accordingly, the main taxes of the State Government like the Value Added Tax, Central Sales Tax, Entry Tax, Cess and Luxury Tax etc. and also the taxes of the Government of India like the Central Excise and Services Tax, have now been subsumed in the Goods and Services Tax.

Goods and Service Tax (GST)

GST, will replace multiple state and central taxes to create one national market and single tax in the country. This bill seeks to subsume all central indirect levies like excise duty, countervailing duty and service tax and also state taxes such as value added tax, entry tax and luxury tax, to create a single, pan-India market.

GST will be a game changer in the states as they eradicate the cascading effect on goods and services.GST will bring down the cost of goods and services as there will be no cascading effects of taxes. He added that GST is expected to increase revenue by widening the tax base and improving the taxpayer compliance. 7% items are such on which no taxes would be levied, 14% items would be in the lowest bracket of 5% tax, 17% items will have 12% tax, 43% items will have 18% tax, and 19% items, which are generally not used by people will have 28% tax.

Only the Goods and Services Tax will be levied in place of all these taxes in the indirect tax regime. Petroleum products and liquor have been kept out of the GST, as of now. The rates of the tax will be uniform on goods and services in the entire nation. As per the decision taken by the GST Council, the Goods and Services Tax will be implemented from 1st July, 2017 onwards.

The State Government has made all necessary preparations for the implementation of the new tax regime so that the trade and industry of the State do not face any difficulties. E-payment will be made compulsory for the payment of taxes.

 

An Introduction to Economy of Sikkim

An Introduction to Economy of Sikkim

Sikkim is surrounded by vast stretches of Tibetan Plateaus in the north, the Chumbi Valley of Tibet and the Kingdom of Bhutan in the east, the Kingdom of Nepal in the west and Darjeeling district of West Bengal in the south. Sikkim has several snow-capped peaks including Kanchenjunga, the world’s third highest peak that attracts a large number of tourists from across the globe. The state has been able to bag seven out of 25 central government’s national projects to promote India as destination for adventure tourism globally.

The gross state domestic product (GSDP) of Sikkim expanded at a high compound annual growth rate (CAGR) of 19.44 per cent between 2004-05 and 2015-16.

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. In 2015-16, the secondary sector contributed 67.73 per cent to the state’s GSDP at current prices. It was followed by the tertiary sector at 23.65 per cent and primary sector at 8.62 per cent. Moreover, at a CAGR of 33.91 per cent, the secondary sector has been the fastest growing among the three sectors from 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply.

Agricultural Sector

The state’s economy is largely agrarian, based on the terraced farming of rice and the cultivation of crops such as maize, millet, wheat, barley, oranges, tea and cardamom. Sikkim produces more cardamom than any other Indian state, and is home to the largest cultivated area of cardamom

Sikkim has a suitable climate for agricultural and horticultural products. It supports multiple crops; viz., rice, wheat, maize, millet, barley, urad, pea, soya bean, mustard and large cardamom. Sikkim is the top producer of large cardamom, contributing over 80 per cent to India’s total production. As per the state budget 2016-17, Sikkim got certified as first fully organic state in India by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

Organic Farming

Sikkim has been transformed as the first Organic State of the country and the world by design and have opened unlimited opportunities in sectors like Agriculture, Horticulture and Animal Husbandry.

Currently, state is exporting large cardamom, ginger, buckwheat, turmeric and cymbidium orchids. Our aim has been to fulfil the domestic market and export our surplus production outside the state.

Under the National Mission on Agricultural Extension & Training, new emerging organic technologies are being disseminated to the farmers through training, demonstration, farm schools, exposure visits, formation of commodity interests groups and food security groups, etc.

The Sikkim Organic Mission is introducing an e-voucher card system as an effective mechanism to distribute assistances under the Direct Benefit Transfer for ensuring that the Scheme’s funds are channeled directly to the beneficiaries. This would be a first of its kind initiative in Sikkim and probably in the Country as well.

Industrial Sector

There has been a drastic shift in the sectoral contribution from primary and tertiary to the secondary sector. The overall performance of the economy of the state during 2015-16 was encouraging. At a CAGR of 33.91%, the secondary sector witnessed the fastest growth among the three sectors during 2004-05 to 2015-16. It was driven by manufacturing, construction and electricity, gas & water supply. In 2015-16, the secondary sector contributed 67.73% to the state’s GSDP at current prices.

The state follows the North East Industrial Investment Promotion Policy, 2007, which provides several incentives and concessions for investment. Institutional support is provided through various central and state government agencies viz., North East Council, Ministry of Development of North Eastern Region and Commerce and Industries Department.

The main industries like Brewing, distilling, tanning and watchmaking are located in the southern regions of Sikkim.

A small mining industry exists in the state, extracting minerals such as copper, dolomite, talc, graphite, quartzite, coal, zinc and lead. Sikkim has identified Rangpo-Gangtok, Melli-Jorethang, Jorethang-Rishi and Ranipool-Gangtok as industrial corridors with provision for giving land to investors on a lease basis.

The units that are engaged in the manufacturing sector are mainly dealing with pharmaceuticals, chemicals, liquors, foam mattresses, food products, iron rods, etc.

Sikkim has identified agro-based industries, horticulture and floriculture, minor forest-based industries, animal husbandry and dairy products, tourism-related industries, IT including knowledge-based industries, precision oriented high value-low volume products, hydro-power, tea, education and hospitality as thrust sectors.

The Information Technology (IT) Department, Government of Sikkim is in the process of setting up a state-of-the-art IT Park and National Institute of Electronics and Information Technology (NIELIT) at Pakyong.

The state has attracted Foreign Direct Investment (FDI) equity inflows worth US$ 3.93 billion during the period April 2000 to March 2016, according to data released by Department of Industrial Policy and Promotion (DIPP).

Tertiary sector

Industrial sector was followed by the tertiary sector at 23.65% and primary sector at 8.62%. The tertiary sector grew at a CAGR of 15.23% between 2004-05 and 2015-16. The growth has been driven by trade, hotels, real estate, finance, insurance, transport, communications and other services. The primary sector grew at a CAGR of 15.55% between 2004-05 and 2015-16.

Tourism provides the main thrust to the economy. With the tranquil climate, the natural beauty and the fine cultural heritage of Sikkim, the growth of tourism has immense possibilities. There are large number of places of tourist attraction particularly the snow clad mountains, the lakes and unspoiled forest areas and valleys of flowers. The advantage of having very fine monasteries in Sikkim can also be taken to attract Buddhist tourists from countries like Japan and the South Eastern countries.

Sikkim was the first to promote the concept of eco-tourism, village tourism and home stay tourism in the country. This essential concept promoting man-nature affinity has been recognized as a new model of tourism.  Promotion of village tourism, homestay, cultural tourism, trekking tourism, ecotourism, wellness tourism, flori–tourism and adventure tourism has given fillip to the tourism trade in the state where a large of number of people are engaged under different employment opportunities.

Sikkim has been featured and ranked 17th in the New York Times “52 best places to go in 2017”. Similarly, Sikkim has also been featured as the best destination to visit in the world in 2014.

The Year 2017 has been declared as the Year of Sustainable Tourism for Development, an area of development in which Sikkim has already made considerable strides with eco-friendly tourism and the development of innovative initiatives such as Chaar Dham and Tathagatha Tsal. Additionally, Gangtok City has been recognized as the safest tourist destination in the country.

FDI inflows  into the state during April 2000 to March 2016 reached to US$ 3.93 billion. A major part of these investments was directed towards power generation There are 27 completed electricity projects in the state. The central government has invested heavily in the hydro electric power generation projects in Sikkim Himagiri Hydro Energy Pvt Ltd. started the initial construction work of their new project namely; 300 MW Panan hydro power project.

Recent Developments

Allocated budget for the industry and minerals sector in Sikkim is estimated to be US$ 9.46 million during 2016-17. Out of this total allocation, villages and small industries would be allocated US$ 5.97 million and large industries would be allocated US$ 2.75 million. The remaining US$ 0.73 million would be allocated to the non-ferrous mining and metallurgical industries of the state.

Sikkim’s geographical and environmental conditions are quite conducive for development of floriculture at a higher altitude. The state is also considered to be the Kingdom of flowers and is an innovator in cultivating Gladiolus.

The state government is also laying emphasis on improving organic farming in the state. During 2015-16, the state government recognized the existing MPCS in the state to promote and enhance organic farming in the state. As a result of these initiatives, the state was certified as the first fully organic state in India, by the Central Ministry of Agriculture and Farmers’ Welfare as well as other recognized agencies of the country.

It is estimated that Sikkim has a peak potential capacity of 8,000 MW and a steady 3,000 MW of hydroelectric power. About 28 hydropower projects are being set up in the state under the public-private partnership (PPP) mode.

Other Key achievements

Nirmal Rajya

Sikkim became the first Nirmal Rajya in the country in 2008 by achieving 100% sanitation coverage and the  first State to achieve Open Defecation Free (ODF) status in the beginning of 2016.

Zero Poverty

Sikkim is the State with zero hunger and the first poverty free State in India. This goal has been achieved through consistent policy prescription and a rigorous implementation regime.

Animal husbandry of Sikkim

Animal husbandry of Sikkim

  • Livestock sector in Sikkim is highly livelihood intensive, agriculture along with livestock is the single largest employer in the state, over 80 per cent of the rural households in the state own livestock and earn supplementary incomes from them, distribution of livestock holdings is less iniquitous – over 85 per cent of all species of livestock are owned by the marginal and small holders.
  • For this reason, income from livestock is more equitably distributed. Livestock sector contribution to Sikkim’s Gross Domestic Product in 2002 was over 6 per cent.
  • In the Sikkim context, livestock has immense potential for diversification in agriculture, offering gainful employment and incremental incomes to tens of thousands of landless, marginal and small farmers.Animal husbandry of Sikkim

Livestock wealth of Animal husbandry of Sikkim

  • Livestock production in Sikkim is predominantly the endeavour of the small producers.
  • Marginal and small farmers own nearly 85 per cent of all species of livestock and poultry, even though they own or operate less than 55 per cent of the farmland in Sikkim.
  • Even the tiny organised poultry industry in Sikkim is made up of small broiler farms.
  • Over 80 per cent of all rural households own livestock (often a mix of several species) as part of the traditional mixed crop-livestock farming system: earning substantial incomes and enriching family diets with nutrient rich animal products.

Contribution of livestock to Sikkim economy

  • Contribution of LS to State economy- 8.16%GSDP
    • Employment in LS 4.5% growth rate per annum
    • Milk is the second largest agriculture produce next to maize
    • 70 % main workforce
  • The Sikkim LSRE Sector Analysis however shows that over 60 per cent of the rural household income in Sikkim comes from livestock farming.

NEW LIVESTOCK SECTOR POLICY (GOALS)

On the basis of the detailed Sector Analysis carried out by the State Livestock Review Exercise in 2003-04, and in the light of the facts placed above, it appears that the following will be the most appropriate policy considerations for the growth of livestock sector in Animal husbandry of Sikkim:

  • Use the livestock sector as a growth engine for the social and economic development of the rural population, increasing rural selfemployment opportunities, enabling steady growth of rural household income and improved quality of life in the Sikkim villages.
  • Enable the small producers to actively participate in the process of development by equipping them with appropriate skills and technologies to transform the growing challenges of the market place into opportunities to build comparative and competitive advantages through improved livestock quality and higher productivity.
  • Ensure the ecological and environmental sustainability of the livestock sector growth and modernisation; constantly monitoring the environmental impact of the growth process and designing policies and programmes to effectively mitigate their adverse impact

Department of Animal Husbandry Livestock, Fisheries and Veterinary Services, Government of Sikkim

Main Objectives:

Major objectives and strategies followed for livestock development during the years are as under:

  • Expand and strengthen infrastructure for artificial insemination, which improve its efficiency and effectiveness using frozen semen technology for crossbreeding purposes.
  • Create a seed stock of qualitatively superior bulls, which would form the nucleus germ-plasm pool to build milch herd of high production cattle.
  • Bring about genetic improvement of important livestock breeds through selective breeding and crossbreeding of low production non-descript stock, both for milk and for draught purposes. Steps are taken to conserve important indigenous breeds of the State.
  • Establish linkage between rural milk producers and urban consumers by replicating the “Anand Pattern” dairy cooperatives in the State and lessen the adverse impact of seasonal imbalances in milk production and marketing.
  • Improve the productivity of pasture lands by introducing improve fodder seeds and increased use of wasteland for fodder production.
  • Optimise the use of crop residue through provision of appropriate supplements and conservation of green fodder.
  • Promote stall-feeding in order to reduce overgrazing and degradation of village grazing lands.
  • Develop adequate animal health services for protection of livestock, with special emphasis on eradication of most prevalent diseases in the State
  • Explore the marketing avenues for sale of livestock products like wool, meat, eggs and day old chicks, cheese and utilize by-products of slaughter waste as well as to find export-oriented programmes of the State livestock products.

 

Goat Farming of Animal husbandry of Sikkim

  • Goat is known as ‘Poor man’s cow’ in India and is a very important component in dry land farming system.
  • Marginal or undulating lands unsuitable for other types of animals like cow or buffalo, goat is the best alternative.
  • With very low investments goat rearing can be made in to a profitable venture for small and marginal farmers.

Sheep farming of Animal husbandry of Sikkim

  • Few countries in the world have no sheep.
  • They are found in tropical countries and in the arctic, in hot climates and in the cold, on the desert and in humid areas.
  • There are over 800 breeds of sheep in the world, in a variety of sizes, shapes, types and colours.
  • Sheep were domesticated long before the dawn of recorded history.
  • Wool fibres have been found in remains of primitive villages of Switzerland that date back an estimated 20000 years.
  • Egyptian sculpture dating 4000-5000 B.C. portrays the importance of this species to people.
  • Much mention is made in the Bible of flocks, shepherds, sacrificial lambs, and garments made of wool.
  • The Roman empire prized sheep, anointed them with special oils, and combed their fleece to produce fine quality fibres that were woven into fabric for the togas of the elite.
  • Perhaps the first ruminants domesticated by man along with goats, sheep are a very valuable and important asset to mankind.
  • Domesticated sheep : phylum Chordata (backbone), class Mammalia (suckle their young), order Artiodactyla (hooved, even-toed), family Bovidae(ruminants), genus Ovis (domestic and wild sheep), and species Ovisaries

Emu rearing

  • Emus belong to ratite group and have high economic value for their meat, eggs, oil, skin and feathers.
  • These birds are adaptable to varied climatic conditions.
  • Although emu and ostrich were introduced in India, emu farming has gained much importance.
  • Ratite birds have poorly developed wings and include emu, ostrich, rhea, cassowary and kiwi.
  • Emu and ostrich are reared commercially in many parts of the world for their meat, oil, skin and feathers, which are of high economic value.
  • The anatomical and physiological features of these birds appear to be suitable for temperate and tropical climatic conditions.
  • These birds can be well maintained on extensive (ranches) and semi intensive rearing systems with reasonably high fibrous diets.
  • United State, Australia and China are leading in emu farming. Emu birds are well adapted to Indian climatic conditions.

Features of Emu

  • Emu has long neck, relatively small naked head, three toes and body covered with feathers Birds initially have longitudinal stripes on body (0-3 months age) then gradually turn to brown by 4-12 months age.
  • Mature birds have bare blue neck and mottled body feathers. Adult bird height is about 6 feet with a weight of 45-60 kg. Legs are long covered with scaly skin adaptable to hardy and dry soil.
  • Natural food of emu is insects, tender leaves of plant and forages. It also eats different kinds of vegetables and fruits like carrot, cucumber, papaya etc. Female is the larger of the two, especially during breeding season when the male may fast.
  • The female is the dominant member of the pair.
  • Emus live for about 30 years.
  • It may produce eggs for more than 16 years.
  • Birds can be maintained as flock or pair.

Rabbit Farming of Animal husbandry of Sikkim

Why Rabbit Farming?

  • With available small investment and in a small place rabbit farming gives more income
  • Rabbits eat ordinary feed and convert them into a protein rich high quality meat
  • Apart from meat production they can also be reared for hide and fur.

Rabbit Farming is for whom?

  • For landless farmers, uneducated youth and women, rabbit farming gives an additional income as a part time job

Advantages of Rabbit Farming of Animal husbandry of Sikkim

  • By rabbit rearing one can produce a quality protein rich meat for his own family
  • Rabbits can be fed with easily available leaves, waste vegetables, grains available in the home
  • Growth rate in broiler rabbits is very high. They attain 2 kgs at the age of three months
  • Litter size (Number of young ones born/ kindling) in rabbits is high (around 8-12)
  • When compared to the other meats rabbit meat contain high protein (21%) and less fat (8%). So this meat is suitable for all age groups from adults to children

 

Quail Farming of Animal husbandry of Sikkim

Advantages of quail farming

  • Requires minimum floor space
  • Needs low investment
  • Quails are comparatively sturdy birds
  • Can be marketed at an early age ie. five weeks
  • Early sexual maturity – starts laying eggs in about six to seven weeks of age
  • High rate of egg laying -280 eggs per year
  • Quail meat is tastier than chicken and has less fat content. It promotes body and brain development in children.
  • Nutritionally, the quail eggs are on par with that of chicken eggs. Moreover, they contain less cholesterol.
  • Quail meat and eggs are a nutritious diet for pregnant and nursing mothers.

 

 

Turkey farming of Animal husbandry of Sikkim

Breeds of turkeys in India

The varieties are as follows

  1. Board breasted bronze:The basic plumage color is black and not bronze. The females have black breast feathers with white tips, which help in sex determination as early as 12 weeks of age.
  2. Board breasted white:This is a cross between Board breasted bronze and White Holland with white feathers. White plumage turkeys seems to be suitable Indian-Agro climatic conditions as they have better heat tolerance and also good and clean in appearance after dressing.
  3. Beltsville small white: It closely resembles the Board breasted white in color and shape but smaller in size. Egg production, fertility and hatchability tend to be higher and broodiness tends to be lower than heavy varieties.
  4. Nandanam turkey 1: This variety is a cross between the black desi variety and exotic Beltsville small white variety. It is suited for Tamil Nadu climatic conditions

Marketing of turkeys

The body weight of adult male and adult female turkey at the 16th week is 7.26 kg and 5.53kg. This is optimum weight for marketing the turkeys.

Turkey egg:

  • The turkey will start lay from the 30th week of age and its production period is 24 weeks from the point of lay.
  • Under proper feeding and artificial lightening management turkey hens lay as much as 60-100 eggs annually.
  • Nearly 70 percent of the eggs will be laid in the afternoon.
  • The turkey eggs are tinted and weigh about 85 gms.
  • Egg is noticeably pointed at one end with strong shell.
  • The protein, lipid carbohydrate and mineral content of turkey egg are 13.1%, 11.8%, 1.7% and 0.8% respectively. The cholesterol is 15.67-23.97 mg/gm of yolk

Turkey meat:

  • People prefer turkey meat because of its leanest nature.
  • The protein, fat, energy value of turkey meat are 24%,6.6%, 162 Calories per 100 gm of meat.
  • Mineral like potassium, calcium, magnesium, iron, selenium, zinc and sodium are present.
  • It is also rich in essential amino acids and vitamins like niacin, vitamin B6 and B12.
  • It is rich in unsaturated fatty acids and essential fatty acids and low in cholesterol.
  • A market study shows that a male turkey sold at 24 weeks of age weighing 10 to 20 kg with expenditure of Rs.300 to 450 will give a profit of Rs. 500 to 600.
  • Likewise a female will give a profit of Rs.300 to 400 in a span of 24 weeks time. Besides, the turkey can be reared in scavenging and semi-scavenging conditions also.

 

PIG FARMING of Animal husbandry of Sikkim

Advantages of pig rearing

  • Pigs convert inedible feeds, forages, certain grain byproducts obtained from mills, meat by products, damaged feeds and garbage into valuable nutritious meat. Most of these feeds are either not edible or not very palatable to human beings
  • Pig grows fast and is a prolific breeder, farrowing 10 to 12 piglets at a time. It is capable of producing two litters per year under optimal management conditions
  • The carcass return is quite high ie. 60-80 percent of live body weight
  • With a small investment on building and equipment, proper feeding and sound disease control programme the farmer can profitably utilize his time and labour in this subsidiary occupation
  • The faeces of pigs is used as a manure to maintain soil fertility

Pig farming- for whom?

  • Small and landless farmers
  • Part time earning for educated youth having agriculture as occupation
  • Uneducated / Unemployed youth
  • Farm women

Breeds

The indigenous pig has been the basis used for pig production for a long period of time. It is small in size. Improved breeds are now being used for grading up the form the basis for pig production in the rural areas.