Development of Supply Chain for Fruit and Vegetable Industry

1. Development of Supply Chain for Fruit and Vegetable Industry Dr. D. N. Kulkarni President – Agri Food Jain Irrigation dr.kulkarni.dilip@jains.com

2. An overview of Indian Agriculture (Production side) • Comparative advantages: • Diverse agro-climatic zones across the country, • Round the year sunshine • Potential to cultivate a vast range of agricultural products • Second largest arable land in the world • Potential for Large marketable surpluses and abundant raw material for processing • Vast pool of skilled manpower in research and extension • These advantages being leveraged, for India to be a leading food supplier to the world.

3. Area and production of Agricultural products(Production in million tonnes) Source: Rabobank International

4. China : $195 bn; USA : $150 bn; India - $105 bn. • India produces • 41% of world’s mango, • 23% of Banana, • 24 % of cashew nut, • 10% of onion, • 30% of cauliflower, • 36% of Green Peas. • India has • 53% of world’s buffalo and • 17% of goat • And a 8000 km of coastline India is the front ranking producer of many perishable commodities

5. 1.7 4.1 3.3 FARMER TRADER WHOLESALER RETAILER CONSUMER PRICE Retail Markups 350 220 160 100 FARM GATE PRICES MILK FISH FRUITS &VEGETABLES Present Scenario in Value Chain Cost Build Up For One Kg. Basket Of Fruit 11.6 2.5

6. Domestic Market Scenario…... • Production may be insufficient if domestic markets all over the country targeted efficiently & effectively. • Market prices are satisfactory • Mango, Grapes, Apples, Pineapples, Pomegranates, Litchis can be sold out in the country itself because of the production in limited orchards & demand in whole country. • Markets in the rural & semi urban(around 60-65%) should also be tapped along with Metros or big cities(around 12-15%)

7. International Markets : Trends • Steady increase in global production of fresh produce. • Balance of power shifting to retail chains from suppliers • Food safety standards are higher & more complex requirements. • Demanding regulations • Increasing intensity of technology • Consumption is convenience-driven. i.e. Value added products. • Increasing health concerns reflected in food consummations. - Organic, functional, herbal.

8. Scenario of export of major fruits in India Mango : • Over 54% of the world mangoes are produced in India. • Less than 10% of total production are approximately exported. • It shows export prospectus for Mangoes is very high. • Markets to be focused for Mango export: UAE, Bangladesh, Saudi Arabia, Kuwait, EU, . New Markets- Japan, USA, China

9. Scenario of export of major fruits in India Grapes : • India produces approx. 1 million tons of fresh grapes annually, out of which export of grapes is about 14000 tons per year, which accounts for only 1.4% of the total production. • Grapes import accounts for approx. 1800 million US $ of which the Indian share is only about 1.5%. • Major Markets to be focused for Grapes export: • UK, UAE, Netherlands, Germany, Saudi-Arabia, Oman etc..

10. Scenario of export of major fruits in India Banana : First in production of Banana in the world. (Around 22% of world’s total output). However, the export from India is negligible. Reasons: • Non availability of on-farm packing house, precooling and cold storage facilities. • Improper pre-harvest practices. • Improper post harvest handling. Major Markets to be tapped for Banana export: UAE, Saudi-Arabia, Qatar, Oman, Kuwait, Bahrain etc.

11. Scenario of export of major fruits in India • Pomegranate : Europe, UAE, Saudi-Arabia, Kuwait, Oman • Apples : Bangladesh, Belgium,Singapore, Srilanka, UK, Malaysia etc. • Citrus Fruits: (Oranges, Mandarins, Lemons, Limes etc.) Bangladesh, UAE, Oman etc. • Pineapples: UAE,Saudi Arabia, UK etc. • Other fruits for export: Papaya, Sapota, Strawberries,Litchis etc.

12. AEZs in Maharashtra • 1) Alphonso Mango • 2) Kesar Mango • 3) Pomegranate • 4) Onion • 5) Mandarin • 6) Banana 7) Grapes & Grape Wine 8) Floriculture

13. Traditional Vs Innovative Traditional mango Transportation methods are not ideally suited to effective food hygiene Innovative mango Transport methods

14. Traditional Vs Innovative Traditional mango packing methods are not ideally suited to effective food hygiene Innovative mango packing methods

15. Supply to Retail Supermarkets which are coming up with high pace

16. Where are lacunae ? • Fragmented land holding • Very poor backward and forward linkages • Poor infrastructure • Lack of post harvest Technology • Poor logistics • Supply Chain Management missing

17. Supply Chain Management • End use based production • Contract cultivation • Captive cultivation • Cluster approach in cultivation • Supply just in time-production logistics • Quality production • Post harvest technology application • Scientific storage

18. End use based production • Local market for table purpose • Long distance market within country • As raw material for processing and for definite product manufacture • Produce what market / consumer wants

19. Competitiveness Key issues in supply chain………. • Global and local competitiveness • Quality competitiveness • Cost competitiveness

20. Quality Competitiveness • Variety • Controlling quality during growth • Harvesting and Maturity standards • Post harvest handling • Post harvest treatments • Packaging and storage • Safety and Hygiene • Traceability

21. Quality production • Variety • Season • Horticultural practices • Integrated water, nutrient, pest and disease, weed management • Training/prunning • Growth regulators • Organic cultivation • Harvesting methods/maturity standards

22. Cost competitiveness • Cost of production • Productivity • By-product and waste utilization • Off season production • Marketing logistics • Value addition • Presentation in market

23. Supply Just in Time – logistics • Determine what buyer wants?- Variety, Quality, Stage of maturity • Determine when he wants?- Frequency • Determine how much he wants?- Quantity, Lot size, Duration • Determine how he wants?- Grading, Packaging, Transport mechanisms • Determine where he wants?- at farm, Port

24. Service providers • Aggregators • Logistic support • Cold chain • Warehousing • Port handling • Credit facilitators • IT related services

25. THANK YOU