missing linkages in the value chain of fruits

26
Presenter: Manish Arora MBA (AB),2 nd Year IABM, Bikaner 1 1 For Infrastructure organization

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Page 1: Missing Linkages in the Value Chain of Fruits

Presenter:

Manish Arora

MBA (AB),2nd Year

IABM, Bikaner11

For Infrastructure organization

Page 2: Missing Linkages in the Value Chain of Fruits

Objective

• To understand the current state of production, value addition and consumption of Kinnow, Oranges and Aonla

• To identify and assess existing processing infrastructure for fruit produces and gap analysis

• To identify problem faced by grower, entrepreneurs etc. at each stage of value addition

• To identify strategies and approach to minimize waste and encouraging value additional at each stage

22

Page 3: Missing Linkages in the Value Chain of Fruits

Project Methodology

Sample Total

number

Method of Selection

Districts, Major Mandies 4,4 Major producing Area andMandi.

Villages 8 Major producing area.

Farmers 30 Snowball & Judgmental

Retailers 24 Randomly

Wholesalers 20 Purposely

Professors 4 specialization.

RICCO OFFICE, Packing unit, cold storage 4,4,5

RCCI officeJaipur, Udyog bhawan, directorate of horticulture

1In each

1. Scientist2. Agriculture officer

3. Farmer, wholesaler, Retailer

WEB portals,RCCI, RICCO, PANT

Krishi Bhawan, Udyog Bhawan, KVK

Primary data

SecondaRy

Data

33

Page 4: Missing Linkages in the Value Chain of Fruits

Current state of Production

source – Directorate of horticulture, Pant krishi bhawan, Jaipur

33.30%

28.70%

16%

4%

2.50% 16%

Per cent share of fruit production in Rajasthan in 2009-10

oragne kinnowmangoguavaaonlaothers

44

Page 5: Missing Linkages in the Value Chain of Fruits

Availability of Fruit In Mandi and their Production belt

Fruits Jaipur Alwar Ajmer Chittor

garh

Hanuma

ngarh

Kota Jhalawar Sri

Ganganagar

Jodhp

ur

Aonla

Orange

Kinnow

Fruits Jan Feb Mar Apr To July

Aug - Sept

Oct Nov Dec

Aonla

Orange

Kinnow

55

Page 6: Missing Linkages in the Value Chain of Fruits

Area & Production

0

1

2

3

4

5

6

7

8

9

Are

a (0

00

he

ctar

e)

Year

0

20

40

60

80

100

120

140

160

180

Pro

du

ctio

n (

00

0 M

T)

year

Amla

Kinnow

Orange

66

Page 7: Missing Linkages in the Value Chain of Fruits

Value Chain Gap

40 paisa

25-35%

RS -1

77

5-10%

Page 8: Missing Linkages in the Value Chain of Fruits

Share & Distribution of Kinnow

88.30%

11.5%0.2%

Percentage share of Kinnow in Rajasthan

Sri Ganganagar

Hanumangarh

others

25

20

15 15

10

5

10

0

5

10

15

20

25

30

Pro

du

ctio

n (

%)

Kinnow distribution in Sri Ganganagar region

Source: DOH,Jaipur

Source: Sri Ganganagar mandi88

2008-09

Page 9: Missing Linkages in the Value Chain of Fruits

Post Harvest Management

70

60

20

5

0

10

20

30

40

50

60

70

80

waxing packing cold store Processing

Farm

er

i(%

)

Post harvest treatment of Kinnow in Sriganganagar

large Size50%

Medium size40%

Undersize fruit10%

Grading of Kinnow in Sri Ganganagar Region

99

Page 10: Missing Linkages in the Value Chain of Fruits

Trade of Kinnow

25%

10%65%

Percentage of Kinnow coming in Sri Gaganagar

Mandi

Punjab Haryana Rajasthan

90%

10%

Kinnow Coming in Sri Ganganagar Mandi

In loose form In packaging form

1010

Page 11: Missing Linkages in the Value Chain of Fruits

Marketing of Kinnow

60%20%

20%

Selling of Kinnow to different value chain by farmer in study area

pre-harvest contractor

wholesaler on farm

in mandi

1111

Page 12: Missing Linkages in the Value Chain of Fruits

Production of Aonla in Rajasthan

23.5%

21.5%

8.9%5.9%

40%

Jaipur Hanumangarh Alwar Chittorgarh others

1212

2008-09

Page 13: Missing Linkages in the Value Chain of Fruits

39.60%

32.50%

6.50%21.4%

Maharastra Madhya pradesh

Rajasthan otehrs

Share of orange of Rajasthan in India 2009-10

Share of Orange

96.50%

1.60% 1.90%

Per cent share of Orange Production in Rajasthan (2009-10)

Jhalawar

bhilwara

others

1313

Page 14: Missing Linkages in the Value Chain of Fruits

Shelf life Of Orange

60 days

40 Days

12 Days

5 Days

0

10

20

30

40

50

60

70

Practices In cold storage with proper

packing,sorting

In Cold storage without proper packing, sorting

If waxed No treatment

Life of orange through various application in study area

In cold storage with proper packing,sorting

In Cold storage without proper packing, sorting

If waxed

No treatment

1414

Page 15: Missing Linkages in the Value Chain of Fruits

Risk & Contract Price Decision

55.5 6 6

77.5

88.5

5.5

6 6.5 6.5

7.58

89

66.5

7 78

8.59

10

3

4

5

6

7

8

9

10

11

12

13

14

15

AGE (Year 5-10)

AGE(Year 10-15)

AGE (15-30)

1515

Page 16: Missing Linkages in the Value Chain of Fruits

Infrastructure Available In Rajasthanfor fruit crops

Fruit

Market linkages

Export

potential

Food

park

s

AEZ MANDIS Proce

ssing

unit

Cold

storage

% of India

production

Kinnow Y N Y N N 30-35% Medium

Orange

Y N Y N N 9-10%

Low

Aonla N N Y Y N high medium

Source: Annual Report of NHM (2009)1616

Page 17: Missing Linkages in the Value Chain of Fruits

Cold Storages in Rajasthan

source – Rajasthan Chamber of Commerce and industry

91%

8%

1%

Private Co-operative public

1717

1. Traditional system for cooling & insulation.

2. Storage time maximum 40 day.

3. Very far from mandi and no packaging and grading facility

4. Charging RS 15-18 Per month for oranges box

Page 18: Missing Linkages in the Value Chain of Fruits

Marketing channel for Kinnow, orange, AonlaMarketingchannel- 1

Marketingchannel -2

Marketing channel -3 Marketing channel -4

Producer Producer Producer Producer

Retailer Commissionagent

Post Harvest Contractor Commission agent

Consumer Retailer Commission agent Wholesaler

Consumer Retailer Retailer

Consumer Consumer

In study area not found

In Jaipur Sadulshahar in Ganganagar& Intergraph in Hanumangarh

Sri Ganganagar( fatehsingh wala)And in Jhalawar Bhawani mandi aklera)

vv

18

18

Page 19: Missing Linkages in the Value Chain of Fruits

Wastages occur in the value chain of Orange

• Poor handling Practice & Improper Transportation- 5-6 %

• Due to the undersize fruit - 10-12%

• Due to poor quality of Wax & picking system -5-6%

• unskilled labor - 5-6 %

• Due to traditional system of cooling system -5%

Farm

washing

Reaches to retail outlet

Cold store

Drying

Picking Transport to processing

plant

Transport through

truck

grading Sorting Packaging

weighing Consumer

Transport to the mandi LOSS -1-2%

1919

Page 20: Missing Linkages in the Value Chain of Fruits

Wastages Occur in the value chainof Kinnow

loss

(10-12%)

wastages

5-8 % loss 5-7%

loss 10-15% loss-7-9%

%

Farm

Distant market

Sorting/ Grading

Local Mandi

A Grade(60-80%)

B Grade( 20-40%)

C grade( 10-20%)

Loss 10-15%

Rajasthan(25-30%)

Outside the state(60-80%)

2020

Page 21: Missing Linkages in the Value Chain of Fruits

Strategy & Approach for Waste

reduction and Value Addition.

1. Competitive strategy

Cost leadership Market oriented

approach

Differentiation focus

2. Rythu bazaar

2121

Page 22: Missing Linkages in the Value Chain of Fruits

Contd.

Kinnow

Orange

Pull Push

NOV-Dec.

Jan-Feb

Use in a processing

unitAnd Store & export

Jan

Pull Push

march

Feb store

Sell It in later

2222

stockDemand

Page 23: Missing Linkages in the Value Chain of Fruits

Gap analysis Processing unit:• Finance problem( Need help of Electricity & Subsidy).

• Required effective market Information.

• Lack of cold storage facility.

• Lack of awareness about branding.

• Seasonal

Packing and Grading unit• Not using good quality wax.

• Packaging material is expensive.

• Seasonal in nature

• CFB and Wooden box.

• Waxing charges – 80 Paisa

• Packing charges – RS 20-25/kg 2323

Page 24: Missing Linkages in the Value Chain of Fruits

Suggestion

1. Provide Infrastructure like Rythu bazaar with cold

storage facility and packaging and grading unit.

2. Provide structure like Food net in Uganda For good

better information flow

3. Processing unit should be on the demand base For this

market study and consumer behavior analysis is must

require.

2425

Page 25: Missing Linkages in the Value Chain of Fruits

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Page 26: Missing Linkages in the Value Chain of Fruits

Visit Area

20 Days

5Days

3 Days

5 Days

4 Days

16 Days

Jaipur ( Pant krishi bhawan, directorate of horticulture, Terminal market, Aonla)

Jhalawar ( KVK, Horticulture College, Aklera, jhalrapatan, bhawani mandi for

orange)

Kota ( Ricco area, kvk hortuclture Research institute)

Sri Ganganagar ( kinnow survey)

Hanumangarh ( kinnow and aonla)

Jaipur (cold storage , packing and grading unit, report writing, presentation)

Start day

Duration (days)

26