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LINKING FARMERS WITH

MARKETS
24th Nov 2016
at DELHI

Scope of F&V Supply chain


management in India
M.L. Arora
Senior General Manager/ Cold Chain
and CEO, FHEL
Flow of presentation
• Indian fruit and vegetable scenario
• Indian supply chain scenario
• World perishable supply chain
• CONCOR initiatives in cold chain
• Conclusion
Indian fruit and vegetable scenario
Largest producers –many F&V,milk, major spices,
meat, jute ,millets, caster oil seed, coffee, cotton
etc.
India produces –fruits 81.28mts (2013-14)
- vegetables(70 types) 162.187 mts
- 14% of word production
Processing of F&V- less than 5 % only
Supply chain – inefficiency is the main bottleneck
Supply flow – product, information, finance
Production share of major fruits and veg in world
Commodities

India share India


Vegetables Fruits
% share %
Brinjal 8.3 Apple 2.4
Cabbage 5.3 Banana 32.6
Cauliflower 4.9 Litichi 0.7
Onion 10.4 Citrus Fruits 12.4
Peas 2.5 Sapota 1.8
Tomato 11.2 Grapes 3.1
Potato 28.0 Mango 22.1
Sweet Potato 0.7 Papaya 6.6
Tapioca 4.5 Pineapple 1.9
okra 3.9 Guava 3.9
others 20.5 Others 11.5
Cassava 8
Ranking of India in production of
fruits and vegetables in India
Commodities
India India
Vegetables Fruits
Ranks Ranks
Brinjal 2 Apple 10
Cabbage 2 Banana 1
Cauliflower 2 Lemon 2
Onion 2 Citrus Fruits 8
Peas 1 Orange 4
Tomato 6 Grapes 16
Potato 3 Mango 1
Sweet Potato 9 Papaya 5
Lettuce 5 Pineapple 5
Pumpkins/Gourda 2
Beans 6
Cassava 8
Area and Production of fruits and vegetables 2014-15
Fruits Vegetables
A P A P
Andaman &Nicobar 3.55 29.72 6.89 51.79
Andhra Pradesh 973.80 14219.31 710.31 12422.06
Arunachal Pradesh 89.08 322.16 1.40 35.00
Assam 153.96 2210.24 291.00 3479.94
Bihar 306.73 4491.24 871.08 16572.70
Chhattisgarh 212.88 1930.18 404.05 5502.36
D & n Haveli 1.10 5.50
Daman & Diu
Delhi 27.30 483.68
Goa 11.27 81.61 6.67 80.86
Gujarat 381.50 8413.17 571.30 11433.58
Haryana 52.12 550.00 370.92 6000.00
Himachal Pradesh 218.03 836.96 78.99 1514.43
Jammu & Kashmir 355.09 2073.74 63.06 1395.47
Jharkhand 93.17 890.04 313.51 4236.73
Karnataka 408.20 6936.90 439.20 7354.88
Kerala 314.56 2584.01 146.00 3445.58
Lakshadweep 0.22 0.48 0.25 0.33
Madhya Pradesh 203.79 5691.90 631.25 12966.50
Maharashtra 1565.00 10021.00 726.00 10112.00
Manipur 54.05 525.78 24.28 274.50
Meghalaya 33.59 339.36 42.04 428.04
Mizoram 57.89 344.43 42.87 260.52
Nagaland 40.16 375.74 52.48 483.39
Odisha 325.86 2148.27 677.33 9433.66
Puducherry 0.48 10.01 0.67 14.73
Punjab 76.95 1528.61 190.42 3907.60
Rajasthan 45.83 444.60 159.77 1366.09
Sikkim 16.02 24.40 26.11 132.02
Tamilnadu 328.54 7370.04 299.79 8678.49
Tripura 60.57 638.78 45.58 760.16
Uttar pradesh 328.70 5378.33 930.92 20341.04
Present scenario of supply chain in
India
Supply chain management stages in general
Inputs- production- procurement –storage-
primary processing –retailing

India is becoming important food market in


global fruit and vegetable trade
F&V Supply chain management in
India
• In spite of good production per capita
availability is low as Post Harvest Losses are
around 5-15 % valuing at as high as Rs.60,000
crores
• Low productivity due to lack of latest
technologies
• Perishable in-efficient supply chain leads to
high cost to consumer
Factors affecting India supply chain
management
• Availability of cold stores
• Refer transport/logistics availability
• Govt. policies
• Connectivity
• Sorting grading technology
• Handling and packaging
• Skilled labor
• Linkage and marketing channels
• Techlonology application in supply chain
Population and demographic changes

• Middle class, health and hygiene conscious


• Nuclear families process food demand
increasing
• Concept of super market –organized retails
coming up
Post harvest losses and preventive
measures
• Income of people, low transportation and development
technologies, improving input quality –the production is
growing
• Supply chain is weak link and thereby losses are there
• Processing is low as compare to developed countries and the
reasons are:-
poor access to technologies
Poor quality of inputs
limited tech expertise and research capacity
low production efficiency
high marketing cost
Benefits of efficient SCM
• Reduction of product losses in transport and storage
• Increase of sales
• Dissemination of technology, capital and knowledge among
chain partners
• Better information of product flow, markets and technologies
• Transparency of supply chain
• Tracking and tracing to the source
• Better control of product safety and quality
• Large investment and risks shared
• Productivity improvement
• High consumer satisfaction
• Increased profit
• On time delivery
Measures to improve the supply
chain and its effectiveness
• Demand forecasting
• APMC notified markets/market clusters
• Cooperatives, contract farming and retails
chains
• Customized logistics
• Govt. support in electricity, capital subsidy and
other incentives
• Information system
• Public private partnership
• Food parks
Marketing of fruits and vegetables
Marketing channels
• Producers- traders- wholesaler- retailer
consumer
• Producer –trader- retailers- consumer
• Producer-trader- consumer
• Producer -consumer
An efficient marketing system

• Reduce post harvest losses


• Enhance farmer realization
• Reducer consumer price
• Promote grading and food safety practices
• Induce demand driven production
• Enable higher value addition
• Facilitate export
COLD STORAGE
• Status of cold storage and potential in India
• Storage of fruits and vegetables and storage conditions
• Cold chain investment
• Wastage of fruits and vegetables
Roles of cold storage
• Seasonal production
• Spoilage reduction
• Losses in transit
• better distribution and fair price
• Stabilizing market prices
• Maintain quality
• Wastage reduction
Geographical distribution of CS

Sr Name of Number. of Percentage Capacity


No the State Cold storages (%) (In M.T.)
1 Uttar Pradesh 1589 29.53 10118000
2 Maharashtra 466 8.66 546748
3 West Bengal 463 8.60 5682000
4 Punjab 422 7.84 1345193
5 Gujarat 398 7.40 1267304
6 Andhra Pradesh 290 5.40 900606
7 Bihar 246 4.57 1147041
8 Hariyana 244 4.53 393121
9 Madhya Pradesh 197 3.66 808052
10 Others 1066 19.81 2242587
Total 5381 100 24450652
Temperature/RH requirements
Commodity Temperature (oC) Relative Humidity (%)
Apple -1 - 3 90 - 98
Apricots -0.5 - 0 90 - 95
Avocado 7 - 13 85 - 90
Asparagus 0-2 95 - 97
Beans, green 4-7 90 - 95
Beet root 0-2 95 - 97
Broccoli 0-2 90 - 95
Black berry -0.5 - 0 95 - 97
Cabbage 0-2 90 - 95
Carrots 0-2 90 - 95
Cauliflower 0-2 90 - 95
Cherries 0.5 - 0 90 - 95
Cucumber 7 - 10 90 - 95
Brinjal 0-2 90 - 95
Grapes -1 - 1 85 - 90
Lemons 4 - 15 86 - 88
Lettuce 0-1 95 - 98
Lime 3 - 10 85 - 90
Mango 11 - 18 85 - 90
Melon water 2-4 85 - 90
Orange 0 - 10 85 - 90
Peach -1 - 1 88 - 92
Potato 1.5 - 4 90 - 94
World scenario of supply chain
management
• Increasing the velocity of a retail supply chain
management increases the revenue and gross
profit proportionally
• Studies shows people are ready to higher
price for freshness and preference trends are
to buy fresh fruits and vegetables than
processed food in the developed countries
High velocity supply chain
• Identify priority action items
• Perform high level supply chain analysis
• Perform detailed process analysis
• Identify future initiatives and actions
Organization design
• Key performance indicators
• Centralized functions
• Centralized supply chain leadership
• Supply chain council for food chain
Business process changes
• Process collaboration
• Vertical integration – paddock to plate –value chain
• Network collaboration
• Single view of forecast
• Lean logistics with innovative distribution strategy
• Dynamic allocation
• Supply chain visibility
• Procurement considerations
• Automated replenishment and inventory planning to optimize
freshness
Factors to improve supply chain
efficiency
• Forecasting tools with perishable
characteristics
• Technology to integrate weather impact
• Management by exceptions
• Efficiency through innovative solutions
• Traceability and tracking technologies
CONCOR’s COLD CHAIN PROJECTS
 FHEL – CA STORE-RAI (HARYANA) and LAND AT
KINGAL (HIMACHAL PRADESH)
 CPC Azadpur, DELHI
 PCC Nasik, MAHARASHTRA
 PCC Singur (WEST BENGAL)
 PCC Ghazipur (UP) to be completed shortly
 Upgradation of Mango Pack house of MSAMB–
Sindhudurg (Maharashtra )-under implementation
 Cold store at Dadri (UP) – under construction and like
to completed by March, 2017
FRESH & HEALTHY ENTERPRISES LTD

 FHEL was set up in February 2006 as a wholly owned


subsidiary of CONCOR to avoid fruit and vegetable wastage
(Nearly 18% of fruits & vegetables wasted in the country
annually due to inadequate cold chain infrastructure).

 The main objective was to introduce the state of art


technology and thereby helping the apple growers of
Himachal Pradesh
SALIENT FEATURES OF FHEL CA STORE:

FHEL has set up a state-of-the-art CA Store at Rai near Delhi with a capacity of
11,700 MT. It is the largest such facility in the country. The facility is capable
of storing all kind of fresh fruits and vegetables, floriculture products, dairy
products under Controlled Conditions of temperature, relative humidity and
gaseous composition, wherever required.
Total Land Area : 66,000 Sq Mtrs
Constructed Area : 22,000 Sq Mtrs
Capacity : 11700 Mt
Number of Chambers : 78 Nos.
Size Of Chambers : 10 X 9 X 8 Meters
Temperature : (- ) 20 C To Ambient
Oxygen : Minimum : 1.5 %
Carbon Di Oxide :1–4%
Relative Humidity : Up To 90%
Number of Loading/Unloading docks : 6 Nos. (3 in font & 3 at rear end)
Administrative Block furniture & fix. : 520 Sq. Mtr
Connected Load : 1306 KW
Contracted Demand : 993 KVA
Procurement Sales Inventory

Value In
Year In M.T. Value In Cr. In M.T. Value In Cr. In M.T. Cr.

2006-07 1057 3.55 1057 4.71 0 0.00

2007-08 10973 30.50 7972 16.21 3157 11.53

2008-09 7732 27.43 8241 33.89 2817 12.56

2009-10 2856 12.08 4206 21.86 1374 7.95

2010-11 9361 32.55 9539 58.87 915 4.75

2011-12 7113 45.66 5009 35.31 2878 26.17

2012-13 6828 35.17 4639 35.00 4574 40.41

2013-14 11239 44.32 15062 80.60 0 0.00

2014-15 8544 46.78 4550 28.59 3825 30.03

2015-16 0 3545 19.40 0


PLANT AND MACHINERY INSTALLED

 Grading and sorting machine with colour sorter from Italy (Sammo make) –
10mt/hour capacity.
 Packing and waxing machine from Italy (Sammo make) – 10mt/hour
capacity.
 Forklifts 6 nos. of Godrej make – triple mast – 3 tons capacity each.
 Power pallet trucks 2 nos. of Godrej make. – 2 tons capacity each.
 Hand operated pallet jacks (10 nos.) – 1.5 ton capacity each.
 Stackers (2 nos.) – 1.5 ton capacity each.
 Punnet packing machine (Sammo) – 70 trayes/minute capacity.
 Poly bag packing machine (Sammo) – 22 # - 2kg bag/minute capacity
 Dg sets 1250 Kva each (2 nos.) – 1250 kva capacity each.
 Cooling towers and pump house – 41900 cfm capacity each– 4 nos.
 Refrigeration equipment (capacity 426 kw each) 3nos.
 Central air conditioning system – 167 tr capacity.
 Nitrogen generator (3 nos.) – 60 nm3/hour each capacity.
 Carbon dioxide scrubbers (6 nos.) – 600kg/hour each capacity
 Plastic bins (41,000 nos.) (1200x1000x785 mm) – capacity 300 kg.
PCC Nasik
• The Ozhar/Nasik, Road based multimodal
logistics hub has been set up by CONCOR in
joint venture with M/s Hindustan Aeronautics
Ltd. (HAL) by Name & style of M/s HALCON.
• HALCON spread over 11 acres and act as ICD
and handles mango, grapes, pomegranates
and vegetables
• It handles average 7500 TEUs annually
CPC AZADPUR
• Centre for Perishable Cargo (CPC) – a unit of Container Corporation of
India (CONCOR) has been set up at New Azadpur (Adarsh Nagar) Railway
Station in New Delhi to facility perishable logistics and handling through
rail-linked infrastructure for benefiting farmers who intend to market their
products in the markets of Delhi and northern India. The facility has been
set up on a plot measuring 2,275 sq. mtrs. adjoining the banana siding
owned by Indian Railways.

CPC has been set up to promote perishable trade across the country with
efficient rail based logistics management under cool chain to reduce post
harvest losses and facilitate better price recovery.
Facilities
• 12 chambers of 20 mt each
• 2 cold storage chambers of 100 mts each
• 3 banana washing tanks
CPC AZADPUR
Cold Store chambers are equipped with automatic Temperature and Humidity
Controls and Air Purification systems.

Latest Technology: Most important advancement in fruit ripening is the


development of Pressurized Ripening Rooms. The key feature of these rooms is
that conditioned air is forced through the product rather than the product just
being stored in a temperature controlled room. The system passes air though each
pallet or series of pallets before returning to the evaporator. Therefore, any “air-
stacking” or “cross-stacking” of boxes / crates is not necessary, and the result is
less handling of the fruit and improved product quality. For non-pressurized
rooms, the boxes / crates of bananas should be "air stacked". That is, the boxes
should be offset to allow the air to circulate among all the boxes since a non-
pressurized room design will not pass air through boxes but around them.

USPs:
• Perfect and uniform ripening in every box and every pallet
• Minimum weight loss
• No manual box handling
• Energy efficient operation
• PC based ripening operation
• Use of banana washing tanks
PCC Singur
Perishable Cargo Centre (PCC) has been taken over by CONCOR in the year
2011 from Siliguri Jalpaiguri Development Authority. The facility has been
developed by Central Railside Warehouse Company Limited (CRWCL) at
Ratanpur in Singur on Railway Land.

Location of the Project: The facility has been developed at a total of 1700 sqm.
area and is located at Ratanpur in Singur (West Bengal) on Railway Land.

Facilities Available: Total Storage Area is 1361.76 Sqm


There are total of 18 chambers located 6 chambers each at Ground Floor, 1 st
Floor and 2nd Floor. Average volume of each chamber is 430 cubic metrs. Thus
total space in all chambers is 7885.654 cubic metrs.

Refrigeration Installations:
Total capacity/load – 58 TR (204 KW)
No. of chillers - 3 (including one standby)
No. of air cooling units per chamber - 2 Nos.

Other salient features:


Total area of site : 1700 sqm.
Total area of the cold storage : 1361.76 sqm.
Total capacity of cold storage : 1430 MT (1000 MT for Potatoes
& 430 MT for fruits & vegetables
PC C Ghazipur
Perishable Cargo Centre (PCC) is being developed at Ghat Railway Station of
Ghazipur District in Uttar Pradesh to facilitate local farmers for perishable for
perishable logistics for fruit & vegetables so that they can market their produce in
metro markets.

Location of the Project: The facility is under development stages in 2500 sqm.
area and is located 7 kms away from Ghazipur City, adjoining Ghat Railway
Station, Ghazipur, UP.

Facilities Available:
(a) Cold Rooms : 4 Nos. of capacity 100 MT each
(Total capacity 400 MT)
(b) Ripening Rooms : 4 nos. of capacity 5 MT each
(Total capacity 20 MT)
(c) Pack House : 1 (16.5 mtr. x 17.5 mtr.)
Total 288 sq. mtrs.
Sindhudurg(Maharashtra)
• Up gradation of Mango Pack House at Deogad, Tehsil, SIndhudurg,
Maharashtra at an estimated cost of Rs. 68 lakh has been approved by
Competent Authority for taking up un CSR of CONCOR as this activity can
be covered under CONCOR CSR policy and Companies Act 2013.
• The facility is suitable for sorting grading and packing of mangoes for
export to European countries.

• The foundation stone was laid by the Hon. MR on 19.6.2016 from Goa
through video conferencing
CONCOR’s Future Strategy
• Cold Chain business in the country is at under-developed stage.
• Most of cold chain businesses if run stand-alone as well as
fragmented chains, are not financially viable.
• Govt. of India is promoting the industry by way of extending
financial assistance in the form of subsidy, soft loans and grants.
• CONCOR need to connect all cold chain projects by integrating and
utilizing the existing network with logistics(rail & road) on pan India
basis.
• Also filling blank spots by hiring/developing cold stores.
• GST expected to be implemented by GOI soon, may help in
developing cold chain business and may attract more FDI in the
retail sector.
• CONCOR is in the process of leasing out FHEL &CPC Azadpur
Conclusion
Indian supply chain of fruits and vegetables or
perishables is at nascent stage whereas the
word supply chain in developed countries is
much ahead of us. lot of improvement need be
done in Indian supply chain in terms of
efficiency and investment to make it a world
class supply chain with the use of technology
and collaboration among the value chain
partners.
Thank you