A PROJECT REPORT ON “QUALITY AND OPERATION MANAGEMENT FOR THE EXPORT OF GRAPES IN NASHIK DISTRICT” AT, ADANI AGRIFRESH LTD SUBMITTED BY, TORAWANE GIRISH SHIWAJIRAO PGDABM (116) BATCH 2008-2010. UNIVERSITY OF MUMBAI’S GARWARE INSTITUTE OF CAREER EDUCATION & DEVELOPMENT VIDYANAGARI, KALINA,\ SANTACRUZ (EAST), MUMBAI – 400098.
Detail Information of Grapes Export Procedure, Quality Measurements, Major Grapes Growing Area in Maharashtra, Dispatch Procedure. Different Countries Rate.
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A PROJECT REPORT
ON
“QUALITY AND OPERATION MANAGEMENT FOR THE
EXPORT OF GRAPES IN NASHIK DISTRICT”
AT,
ADANI AGRIFRESH LTD
SUBMITTED BY,
TORAWANE GIRISH SHIWAJIRAO
PGDABM (116)
BATCH 2008-2010.
UNIVERSITY OF MUMBAI’S
GARWARE INSTITUTE OF CAREER EDUCATION & DEVELOPMENT
VIDYANAGARI, KALINA,\
SANTACRUZ (EAST), MUMBAI – 400098.
DECLARATION
This to declare that I, Mr. Torawane Girish Shiwajirao is a student
of Garware Institute of Career Education and Development, University of
Mumbai, pursuing Post Graduate Diploma in Agriculture Business
Management. I have given original data and information to the best of my
knowledge in the project report titled “Quality And Operation
Management for the Export of Grapes In Nashik District” of Adani
Agrifresh Limited.
And that no part of his information has been used for any other
assignment but for fulfillment of the requirement towards the
completion of said course.
Girish S. Torawane
PGDABM
G.I.C.E.D., Mumbai.
CERTIFICATE OF APPROVAL
It is certified that this project report entitled “Quality And Operation Management for
the Export of Grapes In Nashik District” is a record of project work done
independently by Mr. Girish Shivajirao Torawane, under my guidance and supervision in
the partial fulfilment of Post Graduate Diploma in Agri-business Management
(PGDABM), submitted to Adani Agrifresh Limited and Garware Institute of Career
Education & Development, University of Mumbai and that it has not previously formed
the basis for the award of any degree, fellowship or associate ship to him.
Mr. Shirish Patil, Mr. Ashok Govande,
Course Coordinator, PGDABM Visiting Faculty
University of Mumbai’s, (Management of Marketing and
Garware Institute of Career Project Guide),
Education and Development G.I.C.E.D, Mumbai
Santacruz (E), Mumbai – 400 098
ACKNOWLEDGEMENT
This acknowledgement is not merely a catalogue of names but an expression of a deep
sense of gratitude to all those who helped me in undertaking this project.
I owe a great deal to GARWARE INSTITUTE for laying the building blocks of logic and
pragmatism in my life. This report, in a way is a reflection of these values.
I wish to express my sincere gratitude to Shri. Ganesh Sadaphal (Senior Executive,
Nashik division.) Mr. Uday Kadam (Senior Executive, Nashik division), Mr. Singh (HR
Manager, Adani Agrifresh Ltd) for giving me an opportunity to understand and work on this
project. I would like to thank, Mr. Mandip Parasaniya (Procurement Officer, Nashik division.),
for his guidance, valuable suggestions and kind support that helped in completing this study.
I wish to express my sincere gratitude to Mr. Shirish Patil, Cource Co-ordinator,
(GICED, Mumbai) and Mr. Ashok Govande, Visiting Faculty (Management of Marketing and
Project Guide) without whose help and advice this project would not have achieved the final
shape.
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((PPGGDDAABBMM-- 111166))
++9911 99885500440000995599
Executive Summary
On the basic of internal data study of the company it can be said that quality control parameters
are very stringent for export to Europe Nations.
Research Methodology: Study of internal data of the company
Important Findings : Most important finding from the secondary data is represented by graphs.
As shown below major varieties of grapes that are export in the year 2008-09 by Adani Agrifresh
Limited are Thompson Seedless.
Thompson Seedless is exported mostly to European nations.
Quality and price related parameters are shown below.
In the below graph x- axis is Average price paid to farmers for this variety of grapes around Rs
31-32, Average weight of bunch recorded is and the brix content is around 17-18 %. Size of the
berry was 16.35 and the diseased produce received at the pack house is less than 1%
.
For Thompson Seedless
INDEX
Sr. No. Chapters Page
1 Chapter –I
1.1 Introduction 2
1.2 Objectives of research Company Profile 4
1.3 Grapes 5
1.4 Period of price fluctuation 12
1.5 Competitors 13
2 Chapter – II
Quality Assurance for Export of grapes
2.1 Export Of Grapes 15
2.2 Export Specification (Holland) 16
2.3 Quality Attributes With Tolerance Limit 19
2.4 Major Quality Parameters For Export Of The Berries At
Post Harvesting
22
3 Chapter – III
Global GAP 27
4 Chapter – IV
Grape Net 31
5 Chapter – V
Standard Operating Procedure for the Export Of Grapes 36
5.1 Identification of grapes orchid 37
5.2 Harvesting of grapes 38
5.3 Transportation of grapes from field to pack house 38
5.4 Process quality assurance 39
5.5 Sorting &grading 40
5.6 Packaging & weightment 40
5.7 Labeling 41
5.8 Palletisation 42
5.9 Pre cooling , cold storage,& finished product dispatch 43
5.10 Traceability of finished product 44
6 Conclusion 45
7 Appendix 46
8 References 47
LIST OF THE TABLES
Sr. No. Particulars Page No.
1 Area and Production of grapes in major
producing countries (2006-2007)
7
2 State wise area, production and productivity of grapes (2006-
2007)
8
3 Export of Fresh Grapes from India 9
4 District-Wise Grape Production In Maharashtra 10
5 Competitors &There Pricing Strategies 13
6 Quality And Harvesting Period Of Different Varieties 15
7 Export Specification of Grapes for Holland. 16
8 Quality Attributes with Tolerance Limits 19
9 Quality of Thompson variety of seed with respect to the period
of the procurement
22
LIST OF GRAPHS, FLOW CHARTS
Sr. No. Particulars Page No.
1 Districts Wise Area (Ha.) Of Grapes 11
2 Districts Wise Production (MT’s.) Of Grapes 11
3 The Average Weight Of The Grapes Bunch 23
4 The Average Size (Mm) Of The Berries 24
5 The Average Brix (%) Of The Bunch 25
6 Flow Chart Of Grape Net 33
7 Flow Chart Of Operating Procedure For Export Of Grape 36
CHAPTER–I
INTRODUCTION
1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tons) and Vegetables (90.8
Million tons ) in the world, contributing 10.23% and 14.45%of the total world production of
fruits and vegetables respectively. India has made a fairly good progress on horticulture. Map of
world with total annual production of the horticulture crops touching over 149 million tons India
has been bestowed with wide range of climate and physio-geographical conditions and as such is
most suitable for growing various kinds of horticultural crops such as fruits, vegetables, flowers
, nuts , spices and plantation crops. With the focused attention given to horticulture, there has
been spectacular change in terms of adoption of new technologies, production and availability of
horticulture products. Fruits and vegetables constitute around 10 per cent of the total agriculture
production of the country. This sector offers enormous potential for export.
According to FAO, the export of fruits from India in 2003-04 was US $166 million and that of
vegetables was US $ 205 million. India’s export of fruits and vegetables is more concentrated
towards Asian region. Asian region accounted for 75% of total fruits and vegetable export 2003-
04. The export to European and American market is very less due to imposition of stringent
quality measures but in the last 3-4 year the export of fruits and vegetable Europe has been
increasing with the adoption of Good Agriculture practices (GAP) by Indian farmer. Also the
APEADA is taking active role in establishing many quality testing laboratories and adequate
documentation protocol across the country to boost the export of perish.
Maharashtra is the one of the largest state in the production of fruits and vegetable contributing
19 percent of the total fruit production in the country. The state produces around 9 million tones
of fruits having productivity of 16 MT per hectare of which is fairly good when compared to
country’s average of 12 MT. It grows commodities like grapes, pomegranate, mango, sapota,
oranges, lime, strawberry, jackfruits etc in large quantity. The state holds prestigious position in
vegetable production contributing 5% of the production
and stands 7 th in the country. Total production of vegetables in Maharashtra is approximately 5
million tones. Because of close proximity to Mumbai port and metropolitan market .The
state enjoys the comparative advantage in export as well as long distance in certain commodities.
The state has occupied unique and prestigious position. Example - mango, grapes, pomegranate
and onion.
Highly perishable nature of this fruits and vegetable make their marketing system more costly
and complex. Timely and procurement of fruits and vegetable in bulk is of immense importance
for exporters. Transportation plays an important role in fruits and vegetable market ing.
The exporter has to meet the specific qualitative and quantitative requirements of the importer.
The packaging, residue testing, documentation and phyto sanitary certification has to be met in
order to export. So establishing an efficient backward linkage is must for exporting fruits and
vegetables.
1.2 OBJECTIVES OF RESEARCH
Objectives 1
To study the quality assurance of grapes at the time of procurement at the pack house
Sub objectives:
1. To find the average size of Berries during the season
2. To find the average brix of the berries exported this season
3. To find the average bunch weight of the different varieties of grapes.
Objectives 2
To manage the standard operating procedure for export of grapes
Sub objective:
1. To study identification, harvesting of grapes orchid
2. To study the grading , packaging, labeling of grapes
3. To study the precooling , packaging & container dispatch
4. To study the tracebility of finished produced
5. To study about Grapenet & Globalgap certification
Objectives 3
To find the average price paid to the farmer.
Sub objective:
1. To find out the price to the farmer with respect to the quality of grapes and the time of
procurement
2. To study whether the price is determinant of demand of the grapes or the quality of the
grapes.
1.3 GRAPES
History Of The Grape Fruit In India:
Grape plant was introduced to the Indian farmer somewhere in 1300 AD. However, a few
reputed varieties were actually planted in the country by the Muslim rulers from Afghanistan,
only during the 14thcentury. The first plantation in Maharashtra State was introduced near
Aurangabad. The popular and seeded varieties like Gulabi, Kali Sahehi, and Anabeshahi etc were
further introduced downward towards south. Dr. Chima a well-known scientist through the
process of hybridization and selection introduced a new seeded variety called selection-7, which
was used for table grapes only. The commercial production of grape was commenced only after
import of varieties like Thomson seedless, Kishmish, Chorni, Beauty seedless etc. These seedless
varieties over took the seeded varieties production tremendously. Currently grape cultivation in
India has reached to the extent of 50000 ha, with an annual production of 10-12 lacks metric
tons. Out of the total production, 87% of the produce is consumed as table grape while 10% is
dried and produced for raisin, two percent for juice and one percent for wine.
Initiatives to Develop the Grape Sector:
In India, 90 percent of the grape production is of table variety. Grape farming is highly profitable
venture for the farmers, but it is also high risk as farmers have to invest heavily for production.
In case of a price crash, farmers faced huge losses leading to additional debt burden along with
the initial high investments. Despite the challenges, the grape sector has a lot of potential. Being
a high value commodity, it is one of the largest foreign export earnings. To address the farmer
concerns and capitalize on the market opportunities, the state and central government agencies,
farmers’ organizations and other parastatal organizations and institutions have undertaken
various initiatives to support processing, exports and marketing of grapes.
The key initiatives are as described below:
In order to boost the export of grapes from Maharashtra, "MAHAGRAPES", a
cooperative partnership firm was established in 1991 with the help of the Maharashtra
State Agricultural Marketing Board, Pune. Till date total 16 Grape Grower Co-operative
Societies are the member societies of Mahagrapes from Sangli,
Solapur, Latur, Pune and Nasik area. Main objective of “Mahagrapes” is to boost the
export of grapes for which facilities like pre-cooling and cold storages have been erected
at each grape grower co-operative society. ‘Mahagrapes' is now a well established
brand in the international market exporting grapes to EU and Middle East over the past
last ten years. All technical guidance and financial support has been given by state
marketing board.
Agril -Export Zones (AEZs) for grapes have been set up in Maharashtra and Andhra
Pradesh. The objective of these AEZs is to promote the crop so that abundant raw
material is available at low cost; integrating various assistance programmes of Central
and State Government agencies; provide fiscal incentives to exporters; integrating all the
activities till the produce reaches the market. The AEZs are implemented through public
and private sector participation.
Indian Council for Agricultural Research (ICAR) has set up the National Centre for
Grape Research at Pune to cater to the research and extension needs to develop new
varieties keeping in mind the need for processing and exports. Extension support is
provided to take the findings to the farmers.
Agriculture and Processed Foods Export Development Agency (APEDA) has developed
the “Grape Net”, a web based software that will help trace export of grapes from India to
the European Union. This initiative was aimed at reducing the export rejects due to high
pesticide residues. The Grape Net tracking system will help to monitor pesticide residue
and achieve product standardization, thus boosting grape exports to the EU. If there are
any complaints of pesticides residue being present in grapes, the software will be able to
indicate the farms from where the grapes originated. The software will give details about
the certificate issuing authorities, inspection reports, laboratory analysis, certificate of
residue analysis and the packing house details. It is designed to reach at the root of any
grape export transaction. The software is already being used by about 40,000 farmers.
Because of higher countability and transparency in the system, the farmers returns have
also increased.
2. International Scenario:
Grapes occupy a predominant position in terms of world fruit production, accounting for about
16% of the global fruit production. The total world production of grapes is estimated to be about
68.9 million tones, next only to citrus and bananas and is followed by apples. The major grape
producing countries are Italy, France, Spain, U.S.A, Turkey, Argentina, Iran, Portugal, South
Africa and Chile. The area and production of grapes in some of the major grape growing
countries is given in Table 1.
Table 1. Area and Production of Grapes in major
producing countries (2006-2007)
Name of
the country
Area
(‘000 ha)
Production
('000 t)
Spain 1200.0 6401
France 842.0 6692
Italy 755.0 8325
India 60.2 1546
World 7399.5 68952
Source : FAOSTAT
The world trade in fresh Grapes during 2006 is to the extent of 32.60 lakh tonne valued at
Rs.22979 crore.
3. National Scenario:
The annual production of fresh grapes in India during the year 2006-2007 was to the tune of
16.67 lakh tonne from an area of 63600 ha. India ranks first in productivity ( 25.69 t/ ha)
against the world productivity of 9.32 t/ha and also in terms of highest recorded yield of
100 t/ha. Cultivation of grapes in the country is very much localized, being confined primarily to
four states , viz., Andhra Pradesh, Karnataka, Maharashtra and Tamil Nadu which together
account for more than 90 percent of the area and production. The state wise area, production and
productivity of grapes during is given in Table 2 below.
Table 2. State wise Area, Production and Productivity of Grapes (2006-07)
Sl. No. State Area
(‘000 ha)
Production
(‘000 t)
Productivity
(t/ha)
1 Andhra Pradesh 2.50 51.80 20.72
2 Karnataka 10.80 199.00 18.43
3 Maharashtra 45.40 1284.20 28.29
4 Punjab 1.10 30.70 27.91
5 Tamilnadu 2.80 91.60 32.71
6 Other states 1.00 10.40 10.40
All India 63.60 1667.70 26.22
Source: NHB database
Grape exports from India started in the year 1991 with the initiation of econo mic liberalization.
The export of grapes during the year 2006-07 was of the order of about 85897 t (which amounted
to only 5.1 % of total production) fetching an export earning of Rs. 301.92 crore. The major
importers of Indian grapes are UK, Netherlands, Germany, USA, UAE, Saudi Arabia, Qatar,
Oman, Bahrain, Sri Lanka, Bangladesh, Mauritius, Singapore and Hongkong. Out of the total
exports, 90% is to the Middle East, 8% to the European Union and the rest to South East Asian
countries. Though the harvesting season of grape in India starts from January and extends to
October, the export season of grapes spans from January to April. During this period, South
Africa and Israel are the main competitors. The export of fresh grapes from India during the last
three years is given in Table 3.
Table 3. Export of Fresh Grapes from India
Sr. No. Year Quantity (tonns) Value
(Rs. in crore)
1 2004-05 39338 128.44
2 2005-06 54049 214.60
3 2006-07 85897 301.92
Source : DGCIS report
Grape cultivation for export is mainly done as per EUREPGAP standards where the pesticide
residues should be within permissible limit prescribed by European Union. Organic cultivation
of grape is picking up in the grape growing areas. Being a new initiative, data on area and
production of organic grapes are not available. As it is in a nascent stage, no information is
available with the Research Institutes and Grower’s Association such as National Research
Centre (NRC) for Grape and Maharashtra Grape Growers’ Association.
4. District-Wise Grape Production In Maharashtra
Maharashtra is a leading state in production of Grapes in whole country. In regards to agriculture
land under grapes cultivation & grapes production, Nasik & Sangli districts are at forefront in the
state. Apart from these grapes are also grown in the districts of Ahmednagar, Pune, Satara,
Solapur and Osmanabad. Now a day’s grapes are produced in Latur district of Marathwada.
However, Nasik and Sangli districts are ahead in the production of grapes in a scientific manner.
Area under grapes in Maharashtra is 35236 ha, out of which Nasik and Sangli districts contribute
24174 ha and 8255 ha respectively. Maharashtra produces around 988722 MT of grapes
annually, in which Nasik and Sangli districts contribution is 500406 MT and 231635 MT. Total
exports of Grapes from India is 26793.83 MT valuing 105.89 corers out of which nearly 80 % is
exported from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless ,Tas-e-
Ganesh , sharad seedless, Flame seedless and Sonaka.
Table No.4 District-Wise Grape Production In Maharashtra
Sr. No. District Area in Hectare Production in MT's
01 Nasik 17387 436784
02 Sangli 5585 168138
03 Solapur 1743 47470
04 Pune 1218 33566
05 Ahmednagar 1527 31977
06 Satara 316 11854
07 Pune 94 2890
08 Other 1886 46498
Total 29756 779177
Figure- 1 - District wise area of grapes in Maharashtra state
Figure- 2 - District wise Production of grapes in Maharashtra state
1.4 Period of Price Fluctuation:
Generally the price of grape depends on the production, harvesting period and demands in
market of other part of India.
Max price: November to December with the average price around Rs.55 to 60Rs./kg.
Peak price : April-May with average price around Rs.32 to 33/kg
In the market some variety always fetch good price . A general price for varieties can be given
below:
Sr. No. Variety Export Price Rs/kg Local Price Rs/kg
1. Thompson seedless 31 to 32 25 To 27
2. Sharad Seedless 30 to 31 23 to 25
3. Tas-e-Ganesh 31 to 32 25 to 27
4. Sonaka ---- 24 to 26
Sangli:
Sangli is second largest grapes growing and exporting district in Maharashtra. Export quality
Grapes won’t come to here. So exporters and traders go directly to farmer’s orchard. The
important growing regions are Malegaon, Miraj, Nimni, Savlaj and Tasgaon. Nearly 250-300
containers of Grapes will be exported this year from Sangli district alone. During last year (2007-
08) the farm gate procurement price of export quality grapes fluctuated with the time like this.
February end - 35-40 /kg, March15-30: - Rs 40 / kg, March 30 onwards Rs 45-50/kg
Solapur:
Solapur is also very big market for grapes .Grapes arrival is from Solapur, Sangli, and Baramati
and from regions of Kolhapur surrounding Sangli. Distribution is mainly to Bihar,
Bengal,Orisa, and Southern Indian states. There are many Bihar and Bengal traders operating in
this market. In this market grape price depends on variety of grape. The prices of some
important varieties are given below. Nearly 80% of the production is Thompson seedless and
10-15% is Sharad and flame seedless. Rest is from other varieties.
1.5 COMPETITORS IN THE EXPORT OF GRAPES
There are several different companies &Exporter included in the export of Grapes. They are
give different price to the Farmer at U.K. &Europe country.
Table no-5 competitors and there pricing strategies
Name Of Company/
Exporter
U.K. Price Rs/Kg Europe Price Rs/Kg
Mahindra 36-37 Rs/Kg 31-32 Rs/Kg
Fresh top 36-37 Rs/Kg 30-31 Rs/Kg
Deepak Fertilizers 35-37Rs/Kg 31-32 Rs/Kg
Unifruti 37-38Rs/Kg 31-31 Rs/Kg
Euro fruit Exports 36-37Rs/Kg 30-31 Rs/Kg
Seven Star Exports 35-37Rs/Kg 31-32 Rs/Kg
Sushil Grapes Exports 37-38 Rs/Kg 31-32 Rs/Kg
The Adani Agrifresh ltd. gives farmer 31-33 Rs/Kg according to condition of plot and quality of
the grapes i.e. grade of the grapes.
CHAPTER-II
Quality Assurance for Export of
Grapes
2.1 EXPORT OF GRAPES
Major export is to Middle East, UK, Holland, and Germany. Berry size berries colour and
harvesting time are important for export of the grapes. Harvesting time, berries colour, are
different according to the varieties. Varieties in Demand: Quality &Harvesting period of
Different Varieties.
Table No.-6 Quality And Harvesting Period Of Different Varieties
Name of the Varity Description Berry size Harvesting period
THOMPSON
SEEDLESS
Round berries green
color, Seed less
variety.
16 mm to 18 mm January to April
SONAKA
Elongated
berries,green less
variety.
16 mm to 18 mm January to April
SHARAD
SEEDLESS
Round
berries,Blackish red
colour,seedless
variety.
16 mm to 18 mm January to April
FLAME SEEDLESS
Round
berries,Blackish red
colour,seedless
variety.
16 mm to 18 mm January to April
Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and Middle
East.*Thompson seedless constitutes nearly 95% of grapes export to Europe and UK. But for
Dubai and Middle East market, along with Thompson seedless ,Sharad seedless ,Sonaka,2-A
clone and Tas-e –Ganesh are preferred. The company is also export sharad seedless to Dubai but
they are mostly export Thompson seedless to Europe and UK.
2.2 EXPORT SPECIFICATION (Holland)
Generally 95% Thompson seedless Grapes exported from Maharashtra state. Thompson seedless
Grapes required specific quality for export to Europe and UK Country. Following are the table
shows the export specification of the Indian white Thompson seedless.
Table No. 7 Export Specification of Grapes for Holland.
Indian white Thomson seedless GRAPES – SPECIFICATIONS
Healthy intact Fresh White Seedless Grapes
A Variety Thompson
B General for the whole lot Uniform in terms of class, origin, size, colour
and degree in ripeness.
Sr. No. Characteristics Description
1 Temperature Precooling, storage and transport about 0 - 1
degree Celsius
2 Berry Colour, two separations Opaque milky pale green colour or amber. Not
dark green or glassy.
3
Berries - General Appearance
with 0 % tolerance.
Berries must be fully developed, ripe, turgid
(firm); not bladdery, wilted, over mature; no
shriveled, deformed or poorly pollinated
berries. Colour should be even through the
bunch and across the box. No wrinkling of skin
or sunken area around pedicle, water core.
No abnormal exterior moisture.
Free from decay-decomposition of fungus
development.
Free from decay- internal insect infestation or
internal damage.
4 Berries-General Appearance
with 3% tolerance
Free from slip skin, botrytis, injuries, shriveling
/ witting, cold damage, unspecified internal
quality defects, skin damage, wind rub marks,
unspecified appearance defects.
5 Berries-General Appearance
with 5% tolerance
Free from split berries, mould on stems, sulphur
burn, visible residues, loose berries.
6 Berries-General Appearance
with 8% tolerance
Free from sunburn.
7 Berries-General Appearance
with 10% tolerance
Free from dry stems and dirt.
Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a
representative quantity taken on an random basis out of the entire delivery
All Quality defects in the above mentioned, may not exceed 5 % provided that the
individual deviations are within their stipulated limits
8 Skin Blemish Evenly coloured skin should be free from pest
damage or physical damage. No bruising, hail
marks, splits, cracks, open cuts or rots, sunburn,
sulphur bleaching
9 Vine Condition Stems and pedicles fresh and green, not dry and
brown.
10 Shape/Dimensions Bunch - shape typical of variety; not straggly or
over tight;- round or slightly oval, not
excessively elongated.
Organoleptic
11 Flavour Sweet and refreshing flavour balanced by a hint
of acidity.
12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.