Sourcing,Supply And Distribution Of Fresh Fruits And Vegetables For Urban Clusters

• 1. The Production and Supply Chain Management fromProduction Clusters to Urban Centre By Green Tech Agri Sector Pvt.Ltd. Rajender Thakur

2. 2 3. AspectCurrent Expecte Overalls sized sizeincreas(2008-in 2020 e(%)09)RetailRs. Rs. 20617,49753,517billion billionFoodRs. Rs. 206retail10,67332,696billion billionOrganis Rs. 150 Rs. 620 313ed food billion billionretail3 4. RankTownsStatesPer-CapitaIncome 1 Chandigarh Chandigarh26, 710 (UT) 2 PanajiGoa26,075 3 DelhiDelhi 24, 141 4ValparaiTamilnadu 23, 772 5GreaterMaharashtra23, 109Mumbai 6 PuneMaharashtra 22, 817 7 LudhianaPunjab 22, 178 8Chennai Tamilnadu 21, 885 9ShimlaHimachal21, 348Pradesh 10Jalandhar Punjab 21, 2544 5. 5 6. Aspects) Current size Expected size in Overall (2008-09 2020 increase(%)Retail Rs. 17,497 billion Rs. 53,517 billion 206Food retailRs. 10,673 billion Rs. 32,696 billion 206Organised food Rs. 150 billionRs. 620 billion313retail 6 7. Wide range of agro climatic zones and skills for growing different fruits and vegetables under both open and protected cultivation.Second largest producer of freshfruits and vegetables, but productivity isnot at par with global norms.7 8. 8 9. 9 10. F&V PRODUCTION221 MMT 146MMT75MMTPotatoOkra BananaMangoTomatoBrinjalPapayaGuavaCauliflowerPineapple GrapesBeansCabbageLimeAppleOnion Gourds Lemon LitchiPeasLeafyMosambi OrangeCucumberGinger SapotaPomeGarlicTubers Coconut granate 10 11. 11 12. Commodity Market arrival inAverage Price/ton tonsBhindi 351588.82 19330Bottle gourd 239465.708060Brinjal769732.95 11030Cabbage610880.49 10020Capsicum96102.47 24670Carrot 313044.07 19000Cauliflower775179.17 14160Cucumber 363816.82 11050Drumstick325920.36 28170French Beans28115.78 27240Green Peas 108179.81 30590Mushrooms468.19108460Onion 8345819.468050Exotics 84958.17 13500Potato7301810.009420Pumpkin303267.778100Raddish141579.046210Spinach 39488.156400Sweet Potato50848.75 10370Tomato2582619.74 1179012 13. 13 14. 14 15. A. Quality produce from precision farming/protected cultivation such as greenhouse,nethouse and hydroponics .B. Fresh Organic Fruits and Vegetables.C. Fresh off season fruits and vegetables from open cultivation.D. Fresh exotic fruits and vegetables.E. Processed and Frozen vegetables.F. Mushrooms fresh and canned.G. Processed natural juices,jams,sauces and pickles.15 16. FRUIT VEGETABLES S16 17. VEGETABLES FRUITS17 18. COUNTRYAREA (ha)SOURCEChina (2010)27,60,000 Yang, 2011Korea (2009)57,444 Lee, 2011Spain 52,170 Euro Stat, 2010Japan 49,049 MAFF, 2011Italy 26,500 Euro Stat, 2010Mexico11,759 SAGARPA, 2010Netherlands89600 Euro Stat 2011France 9,620 Euro Stat, 2005United 8,425 US Census HortiStates Spec 2010India 30,000 NHB 2011 18 19. YearArea in hectares Major states-Maharashtra,2005-06 451.82 Karnataka, Tamil Nadu, Andhra2006-07 1440.47Pradesh, Gujarat, Himachal2007-08 4796.55Pradesh, Uttrakhand, Punjab2008-09 7086.81and Haryana has already made2009-10 6634.74notable headway. Rajasthan,2010-11 5536.47Orissa and some northeastern2011-12 22528.25 states are also coming forward. As a result, the total area under protected cultivation is estimated to have expanded in the past one decade to nearly 30,000 hectares. 19 20. Sr. No. Name of CropProduction(Tons/Ha) Open GreenhouseHydroponics1 Tomato30-50 60-100150-2502 Cherry Tomato 15-2030-40 75-1003 Green Capsicum20-3040-60100-1504 Colored capsicum12-2025-40 60-1005 Green Chilly 8-1215-2540-606 Cucumber40-60 80-120150-1807 Iceberg Lettuce 20-2540-50200-2508 Coriander 15-2030-40150-2009 French Bean 10-1520-2550-6010Squash25-3050-60100-15011Chinese Cabbage 15-2030-40 50-10012Spinach 15-2030-40150-20013Celery20-3040-60100-15014Parsely 10-1520-25100-12515Straw berry 5-610-1225-3020 21. 21 22. 22 23. 23 24. STRENGTHWEAKNESS Wide variety of fruits and Lack of farmer awareness aboutvegetables can be grown . agricultural practices, products and Very less consumption oftechnologies for organic andchemicals as compared toprecision farming.developed nations. Price competitiveness. Organic pockets existing in Lack of market information anddifferent parts of the country. intelligence. Differentiation can be easily Inadequate PHM andcreated.related infrastructure to support Farmers as well as Government organic production.interests are rising in organic and Lack of R&D base in organic andoff season F&V production precision production . Various niches in fruits & Unavailability of quality inputs.vegetables can be created. Certification and labeling. Indian corporate are investing in No access to international market.agribusiness . 24 25. Favorable government vision. WTO offering global opportunities. Price premiums in different markets. Export opportunities in new product/market. USA, Europe and Japan are rising markets. Branding offers new opportunities for differentiation. Rising demand for organic products. Big retail stores/chains opening up. New developments in post harvest technologies. New products, production, PHM technologies . Private sector keen to join premium F &V value chain. 25 26. ProductivityPrecision farming through cluster approach byadopting greenhouse and hydroponics cultivation.Quality improvement Quality inputs, organic farming, good agriculturalpractices and management.Post Harvest Management Establishing collection and processing centers ineach growing clusters because premium crops areclimacteric in nature and are highly sensitive tochange in temperature they need proper coldstorage chain till point of sales to the end consumer.Packaging Innovative and attractive customized packing so thatmaterial is safe during transportation.TransportationRefrigerated vans.Storage Cold storage near production areas.Marketing Direct marketing to customers, aggregators, hotelsand establishments. 26 27. Total vegetable volume sales exceeded 90 million tones in 2011. Of the totalvolume, 86% of sales were to consumers and the remaining 14% toestablishments such as restaurants and canteens or institutions such ashospitals and schools. Aggregators , retail chains, RWAs and ULBs and health authorities wantassured supplies from identified production clusters. Green Tech will initiate organic production of fruits and vegetables under itsown brand in all major cities having population more than 1 millions. Establishment of post harvest management and marketing infrastructure. Demand-driven exotic vegetables production is suitable for the farmers asthey have assured market through contract with consumers. Exotic vegetables market is growing at the rate of 15 to 20% per annum isincreasing day by day since India is importing more than 85% exoticvegetables. The annual demand for mushrooms that was around 5,000 tons in 2001 inthe country has doubled to 10,000 tons in 2004 and the demand is expectedto grow at a good pace of 25% every year for many years to come. 27 28. Production and productivity of crops and profitability of farmers canbe enhanced by encouraging off-season production under precisionfarming systems such as protected cultivation in green houses,shade net houses. etc for generating income round the year. Presently the area under vegetable production under protectedconditions is 30000 ha., while the national potential is ten lakh ha. Green Tech Agri Sector Pvt. Ltd. will establish its own hydroponicsfarms(5-25 acres) in and around major urban clusters to produceyear round fresh organic capsicum, tomato, cucurbits,englishvegetables, strawberry and a wide range of horticultural crops. Organizing farmers clusters to overcome issues of fragmented landholdings. Credit facility to farmers to meet operational expenses. Adoption of precision farming technologies. Supply of Quality planting material, seeds, INM & IPM. Good Agriculture Practices.28 29. The Premium Fruit and Vegetable Initiative is proposed to cover Peri urbanareas around all State Capitals or other cities with more than 10 lakhpopulation. Total 40 Cities to be covered during 2013-18. India had a large and growing population of over a billion people of whom,around 300million were categorized as middle class consumers who hadsignificant purchasing power. The country also offered a relatively youngmarket with 54 percent of the population below 25 years of age. The McKinsey Global Institute, a think tank, estimated Indias retail marketwould be worth $1.52 trillion by 2025, up from $370 billion in 2005.McKinsey estimated the food-and-beverage category would still account for25 percent of all retail spending in 20years. With the introduction of new food chains like McDonalds, Mainland china,California Pizza, Pizza Hut etc, the people in India are now developing newtest buds to accept new food items. Preparation of these food items needmany exotic vegetables like Baby corn, Red cabbage, Broccoli, Colored bellpepper, lettuce, mushroom, Asparagus ,Olives etc some of which areimported from other countries. Due to huge supply chain, more demand andless supply these vegetables comes very costly in the Indian market. 29 30. The market for organic food products in India is growing at 20-22 percent a year. With rising spending power of the growing middle classin the country and increased awareness towards chemical free food,organic and natural products sector will grow significantly in thecoming years. Indian market for organic food including exports is currently valued atRs. 10 billions. The country produced around 3.88 million tons of certified organicproducts that include basmati, pulses, tea, coffee, spices andoilseeds. Organic foods industry presently is metro-based, with about 95 percent of the brands existing in top 10 metros like Delhi (NCR),Kolkata, Mumbai, Pune, Chennai, Bangalore and other tier II cities. The states doing well in organic farming are Madhya Pradesh(440,000 hectares), Maharashtra (150,000 hectares) and Orissa(95,000 hectare).30 31. To address all concerns related to both the demand and supply sideof the premium fruit and vegetable sector in selected cities. To enhance vegetable production and productivity, improvenutritional security and income support to vegetable farmers. To establish an efficient supply chain thereby leading to employmentopportunities and incomes for intermediate service providers, andsafe, good quality, fresh as well as processed agri produce atcompetitive price for urban consumers. To promote, developing and disseminating technologies forenhancing production and productivity of vegetables in peri-urbanareas of major cities. To address the entire value chain, right from the stage of pre-production to the consumers table through appropriate interventions. To create employment generation opportunities for skilled andunskilled persons, especially unemployed youth. 31 32. Baseline Survey of urban clusters to assessdemand and supply. Organization and Promotion of FarmersGroups/Farmer Institutions . Measures for enhancement of production andproductivity through precision farming . Establishing hydroponics structures,mushroom production units, plant healthclinics, primary processing ,grading, storageand value addition at production clusters.32 33. Establishment of collection and testing centers ineach potential cluster. Establishment of grading, packing, processing andstorage facilities Support of ULBs for static/mobile CA kiosks. Support of institutions (co-ops, corporate, SPVs,Farmers groups, Universities, CBOs) for seedlingdevelopment, INM/IPM, contract and organicfarming, GAP, capacity building) Post harvest management, storage and transportinfrastructure Suitable Tie-ups between productionclusters/Farmers groups and Aggregators 33 34. Green Tech Agri Sector Pvt. Ltd. will establish partnership with Bigcommercial farms, Agrifinance companies, Food processingcompanies ,Logistics companies, Retail houses and Various FarmerProducer Organisations. State Horticulture Missions & National Level Agencies such asSFAC, NHRDF,NDDB,NABARD,Departments of Agriculture andHorticulture, State Agricultural Universities, ICAR institutes.All Metros, State capitals or any other urban centers with apopulation of 1 million and above urban clusters will be identifiedthrough out the country. Corporate Strategic Action Plan covering end to-end interventionsin the supply chain based on comprehensive survey andassessments. 34 35. Goodyield Farming Ltd. will identify and select the city they wish totake up in 2013-14 and develop the project for fruit and vegetablesupply to the city. Perspective plan/strategic plan will be prepared based on theBaseline survey to assess the extant vegetable supply chain to theidentified city, identify bottlenecks and potential vegetable growingclusters, existing as well as potential. The project report will be formulated for each selected urban clusterwhich should invariably contain information on geography & climate,potential of vegetable development, availability of land, SWOTanalysis, and strategy for development and plan of action proposedto be taken to achieve goals in the identified urban cluster of theState. Focus will be on adoption of cluster approach for production andlinking with available infrastructure to be created, for post harvestmanagement, processing, marketing and export35 36. Baseline Survey, selection of metros and cities, farmers clusterand Tie up with FIs and Aggregators(2013-14) . Identify the Town/City (2013-14) Participation in Workshop on Baseline Survey, farmer clusterand Tie up with Aggregators at Corporate office of Green TechAgri Sector Pvt.Ltd.(2013-14) Prepare projects on above lines and approve Projects by BoDby mid May 2013-14 and implement throughout India. Organisation of farmer producer organisation /groups in eachurban clusters (2013-14). Setting up of Green Tech Precision Farming Centres equippedwith all agri-inputs , farm credit, plant health clinic, training anddemo farms, hydroponics farms collection centre, grading andpack house, mini-cold store(2014-17) Setting up of Model Mushroom Production Unit(2015). Marketing and Distribution Network(2013-17) Consolidate bench mark data on area, production, productivityand market arrivals of important vegetables.2013-1436 37. Fast growth in organic products. Cash and carry of organic fruits and vegetables. Good profits due to higher selling rates. Changing food habits of rising middle urbanclass due to rise in their income. Modern retail outlets in urban clusters. Government support with Foreign DirectInvestment. Income and employment generation. 37 38. SrParticulars Unit Rate First Second Third Fourth Fifth Amount Rs yearyear yearyear yearCr1.Hydroponic4 acre 2500/Sq1.001.001.001.00 1.00 5.00Structurem2.Plant health0.25 25 lac/--0.25- - 0.25clinicacre unit3.Mushroom0.25 100- 1.00 -- - 1.00Productionacre lac/unit4.Grading & 0.25 15 lac/0.15 - -- - 0.15Packing house acre unit5.Primary 0.10 25 lac/--0.25- - 0.25Processingacre unit6.Cold store0.10 25 lac/--0.25- - 0.256000 MT acre unit7.Refer vans 6325 lac/0.250.250.250.75MT unit8.Shop cum0.25 20 lac 0.20 - -- - 0.20officeacre9.Misc. --0.160.230.200.10 0.10 0.7910. Grand Total A --1.762.482.201.10 1.10 8.64 38 39. Sr. ParticularsFirst Second Third Fourth Fifth Amount yearyear yearyear year1.Lease rent 0.240.48 0.720.96 1.203.602.Agri Inputs1.001.20 1.441.73 2.077.443.Purchase of vegetables 1.503.00 4.506.00 7.50 22.504 Office 0.220.22 0.220.22 0.221.105.Hydroponics structure- 0.23 0.230.23 0.230.926.Mushroom Production Unit - -0.110.11 0.110.337.Plant health clinic- -0.050.05 0.050.158.Grading &Packing 0.090.09 0.090.09 0.090.459.Primary Processing Unit- -0.050.05 0.050.1510. Cold store - -0.030.03 0.030.0911. Input Sale 0.050.05 0.050.05 0.050.2512. Refer Van0.030.03 0.060.06 0.060.2413. Security 0.030.03 0.030.03 0.030.1514. Electricity & Telephone0.020.04 0.100.10 0.100.3615. Misc.0.320.54 0.770.97 1.183.7716. Total B3.505.91 8.4610.6912.9841.5039 40. Sr ParticularsFirst SecondThird Fourth FifthTotalyearyearyearyear year amount1. Total A1.76 2.482.20 1.10 1.10 8.642. Total B3.50 5.918.4610.69 12.98 41.543. Total A+B5.26 8.39 10.6611.79 14.08 50.184. Interest 0.79 1.261.60 1.77 2.11 7.535. Depreciation -0.180.25 0.22 0.11 0.767Total C6.05 9.83 12.5113.78 16.30 58.47 40 41. Sr Particulars First Second ThirdFourthFifth year.yearyear year year1. Sale of hydroponics -150ton 300ton 450ton600ton produce @100000@100000@100000 @100000 150tons/acre 1.50 3.00 4.506.002. Sale of agri Inputs 1.201.44 1.732.07 2.48 to farmers3. Sale of mushrooms --100ton 200ton250ton 25tons/unit@100000@100000 @100000 1.00 2.002.504. Sale of fruits &1000ton2000ton3000ton4000ton 5000ton vegetables@30000 @30000 @30000 @30000@30000 5000tons/cluster 3.00 6.00 9.0012.00 15.505. Total income4.208.94 14.1320.57 25.486. Total costs 6.059.83 12.5113.7816.307. Net Profit D-C -1.85 -0.89 1.626.79 9.1841 42. THANKSAs a result of new multi-sector,multi-stakeholder collaborations,urban and rural authorities andtheir citizens can come to betterunderstand their food andecosystem resources to adapt tomultiple challenges and managemore resilient food systems FAO.42