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Internship Report

The document provides an overview of Sahyadri Farms Post Harvest Care Ltd, an Indian company that works with smallholder farmers. It discusses the company's history and growth since 2010, including establishing infrastructure and partnerships to help farmers access financing, technology, and export markets. The company aims to build integrated value chains for crops and ensure sustainable incomes for small farmers.

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Himanshu Verma
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0% found this document useful (0 votes)
448 views28 pages

Internship Report

The document provides an overview of Sahyadri Farms Post Harvest Care Ltd, an Indian company that works with smallholder farmers. It discusses the company's history and growth since 2010, including establishing infrastructure and partnerships to help farmers access financing, technology, and export markets. The company aims to build integrated value chains for crops and ensure sustainable incomes for small farmers.

Uploaded by

Himanshu Verma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 28

CHAPTER 1

INTRODUCTION
1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tonnes) 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 2022-23 US $166 million and that
of vegetables 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 2022-23. 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
perishables.

Maharashtra is the one of the largest state in the production of fruits and vegetable
contributing nineteen percent of the total fruit production in the country. The state
produces around nine million tonnes 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. State holds prestigious position in vegetable production
contributing 5% of the production and stands 7 in the country. Total production of
vegetables in Maharashtra is approximately 5 million tonnes.
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, e.g.
mango, pomegranate, grapes, onion.

Highly perishable nature of his fruits and vegetable make their marketing system
costlier 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 marketing.

2|Page
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 COMPANY’s PROFILE

Company Name: SAHYADRI FARMS POST HARVEST CARE LTD.

Address: Gat No. 314/2/1, A/P Mohadi, Tal. Dindori, Nashik - 422207, Maharashtra,
India
Establishment Year: 2010
Mode of Internship: Online

Company’s Timeline
2010 - 2014: Laying the Foundation
 Acquired the land for Central Processing Unit building at Mohadi, Nashik in
2011 & laid the foundation in 2013.
 Installed advanced ripening chambers in 2014.
 Commenced fresh table grapes exports to Europe.
 Established Sahyadri Farms in 2010.
 2015 - 2017: Stepping into the Big Global League
 Maintained its position as India's largest grapes exporter to Europe since 2015.
 Launched agri-input activity under SARL in 2015 while farmer finance was set
in motion in the same year.
 Launched aseptic & frozen processing in 2015.
 Initiated tomato paste manufacturing in 2016.
 Inaugurated the first domestic retail store in 2016.
 Imported ARRA-19, a table grape variety from Grapa, California.
 Imported patented table grape varieties - ARRA-15 & Iniagrape One.

2018-2020: Consolidating the Gains and Fighting through the Pandemic

3|Page
 Commissioned FMCG product lines and commenced production of Kissan
Ketchup (Brand owned by Hindustan Unilever).
 Launched an indigenously developed automatic weather station to provide live
weather data to farmers.
 Collaborated with Tata Strive Skill Development Centre to offer skill
development programmes; completed the first batch of over 160 students.
 Won exclusive rights for distribution of ARRA grape varieties in India.
 Completed the agri-processing cluster (APC) allocated by MOFPI and won
approval for 4 more food processing units in APC.
 Efficient delivery of food baskets to 300,000 families in the lockdown during
COVID-19.
 Procured over 55,000 metric tonnes of tomatoes despite drought, heavy rains &
COVID-19 in the same year.
 Achieved total digitalisation via methodical seed-to-plate processing.
 Successful implementation of SAP ERP platform across Sahyadri Group.
 Setting up Sahyadri Farms Post Harvest Care Ltd.

2021 and beyond: Aiming for Global Domination


 Setting up Sahyadri Farms Supply Chain Ltd.
 Transferring the entire processing campus to Sahyadri Farms Post Harvest Care
Ltd.
 Started wholesale & B2B businesses through 50 distribution centres of Sahyadri
Farms Supply Chain Limited.
 Established residue testing facility for convenience of value chain, right where
the process of food is executed.
 Established India's one-of-its-kind advanced lab for soil, water, leaf & petiole
testing.
 Established an independent bio lab that included bio fertilisers. Successfully
completed distinct projects namely: i) Aseptic ii) Raisin, iii) Rice iv) ETP
 Launched an incubation centre for training of FPOs through 'Sahyadri Rural
Development Foundation'.
 Launched 'The Juice Farm', an authentic store vending fresh fruit juice.
 Imported multiple varieties of fruits including grapes: SNFL Company (5
varieties), Grapa (9 varieties exclusively of ARRA), Citrus: 15 varieties
 Yet again, cemented its position of being the foremost Indian grapes exporter to
Europe.

Sowing the Seeds of Success

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“Alone we can do little; together we can do so much”. With this as their belief, four
smallholder farmers led by Mr Vilas Shinde took their first steps on a long and
purposeful journey. What started as an informal understanding between these
smallholder farmers quickly transformed into a movement of farmers which has grown
today into the leading fruits & vegetable export company from India servicing over
18,000 registered farmers that cover 31,000 acres and 9 crops.

Sahyadri’s vision was clear: To build people, processes and practices to enable and
empower smallholder Indian farmers to compete with the best by cultivating the highest
quality fresh produce. Since its inception, Sahyadri remains fully committed to helping
farmers overcome the barriers to finance, technology adoption and product value
addition.

In time, Sahyadri’s self-contained infrastructure encompassed an agro-advisory team,


a world-class pack-house, cold storage facility and a technology backbone to help
achieve scale meaningfully. Soon enough, Sahyadri Farms became a hub of value
addition by building and operating an agri-value chain that was efficient, expedient and
innovative.

While building Sahyadri Farms, there was an acute realisation that post-harvest losses
not only imply wastage of food but also represent a colossal waste of human labour,
agri-inputs, financial investments and scarce resources like water.

The ultra-modern campus of Sahyadri Farms helps farmers access the latest technology
and processing infrastructure, follow global best practices and offer the highest quality
fresh and processed products to discerning consumers globally.
Circa 2022, we have just begun. Clearly, our best is yet to come.

Building crop-specific integrated value chains


The model of a small land holding farmer being independent and self-sufficient is very
difficult to achieve. Climate change and the overuse of fertilisers over the past few
decades have worsened this. Also, the entire value chain is disparate, broken and
fragmented.

With this in mind, Sahyadri Farms started its journey to solve the issue of scalability,
farmer sustainability and consumer benefit. It's 100% owned by farmers alone.

The intent was to build a sustainable, scalable and profitable agri-enterprise anchored
by marquee Indian and global investors. It would provide a holistic solution to farmers
so that farming becomes a profitable activity for all the smallholder and marginal
farmers associated with Sahyadri Farms.

We believe that it’s possible to ensure sustainable income to the small and marginal
farmers in the developing economies thus ensuring a life of dignity for them and their
families. We intend to achieve this without putting burden on our end-consumers.

5|Page
By removing unnecessary middlemen, offering better logistics, reducing post-harvest
losses and providing trust and transparency to consumers, we can achieve sustainability
for the farmers and provide quality and assurance to consumers.

6|Page
1.3 GRAPES
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. Nowadays, grapes re produced in
Latur district of Marathwada. However, Nasik and Sangli districts are ahead in the
production of grapes in a scientific manner.

Figure 1.1

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 respectively. Total export of Grapes from India is 26793.83 MT valuing
105.89 Crores 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.

7|Page
1.4 MARKET SCENARIO
Nasik district is the largest producer and export of Grapes in Maharashtra. The main
growing are Dindori, Nasik, Niphad, Pimpalgaon –Basvant and Chandwad.

Export of grapes from nasik stands at 7613.63 MT during 2022-23. Usually very little
quantity of export quality grapes comes to APMCs. Export grapes are Usually Procured
at the fare gate. Traders and exports go directly to farms 20-25 days before harvest and
they fix a procurement price based on the grade.

1.1 PERIOD OF PRICE FLUCTUATION


Generally, the price of grape depends on the production, harvesting period and demands
in market of other part of India.
Low price: Nov to Dec with the average price around Rs.7 to 9/kg Peak price;
April-May with average price around Rs.12 to 15/kg
In this market some variety always fetch good price.
A general price for varieties can be given below:

Variety Price Rs/kg


Thompson seedless 15-20
Sharad seedless 25-35
Tas-e-Ganesh 10-15
Sonaka 25-30
Flame Seedless 25-28
Table 1.1

SANGLI MARKET
It is second largest grapes growing and exporting district in Maharastra. 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 (2022-23) the farm gate procurement price of export quality
grapes fluctuated with the time like this.
February end’s 35-40 /kg
March15-30: Rs. 50 / kg
March 30 onwards Rs. 60-65/kg

8|Page
SOLAPUR MARKET
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.

Variety Price (Rs/Kg)


Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad Seedless 25-35
Table 1.2

9|Page
CHAPTER 2
EXPORT OF GRAPES

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2.1 EXPORT OF GRAPES

Major export is to Middle East, UK, Holland, and Germany.


Varieties in Demand:

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 Eupore 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.

Name of the Variety Description Berry Size Harvesting


Period
Thompson Seedless Round berries, Green 16-18 mm Jan-Apr
Color, Seedless Variety
Sonaka Elongated green berries; 16-18 mm Jan-Apr
Seedless variety
Sharad Seedless Round berries; Blackish- 16-18 mm Jan-Apr
red Color; Seedless
variety
Flame Seedless Round berries; Blackish- 16-18 mm Jan-Apr
red Color; Seedless
variety
Table 2.1

2.2 EXPORT SPECIFICATION (HOLLAND)

Indian white Thompson Seedless Grapes- Specifications

Healthy intact Fresh white Seedless Grapes


Variety Thompson
General for the whole lot Uniform in terms of class, origin, size, color
and degree of ripeness
Sr. Characteristics Description
No.
1 Temperature Pre-cooling. Storage and Transport about 0-1 C
2 Berry Color, two Opaque milky pale green color or amber. Not
separations dark green or glassy

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3 Berries- General Berries must be fully developed, ripe, turgid
Appearance with 0% (firm); not bladdery, wilted, over mature; no
tolerance* shrivelled, 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 Free from slip skin, botrytis, injuries,
Appearance with 3 % shrivelling / witting, cold damage, unspecified
tolerance internal quality defects, skin damage, wind rub
marks, unspecified appearance defects.
5 Berries-General Free from split berries, mould on stems,
Appearance with 5 % sulphur burn, visible residues, loose berries.
tolerance
6 Berries-General Free from sunburn.
Appearance with 8 %
tolerance
7 Berries-General Free from dry stems and dirt
Appearance with 10 %
tolerance
8 Skin Blemish Evenly Colored skin should be free from past
damage or physical damage. No bruising, hail
marks, splits, cracks, open cuts or rots,
sunburn, sulphur bleaching
9 Vine Conditions 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 Physical
11 Flavour Sweet and refreshing flavour balanced by a hint
of acidity.
12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.
13 Aroma None, free from any foreign odour
14 Sugar Content minimum - 16 degree Brix. Max 20 Brix
15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1
16 Berry Size, printed on the Minimum 15 mm, as Regular, Large 16- 18
Label mm, Extra Large 18-20 mm. XXL.20 mm and
up. Target

12 | P a g e
average16 - 18 mm.
17 Dropped Berries Minimal dropped berries (shatter) in
packaging:
tolerance up to 4 % by weight, Target zero.
18 Pouch Weight 9 Pouches of min 510 gms. (by packing) per
4.5 kg carton.
Preference of 1 bunch per bag, with a tolerance
for 2 bunches of
even weight in 1 bag, No single bunch to weigh
less than 200gms.
19 Punnet weight 10 punnets of min 520 gms (by packing) per 5
kg
Carton.
Max three bunches per punnet with a minimum
weight allowed to about 50gms for third bunch
for adjustment of weight purposes.
20 Insects/ Spiders No insects, spiders or mites to be present in the
product or packaging.
21 Additional Information All produce supplied to this specification must
have been grown in compliance with the
APEDA NRC document and relevant Global
Gap protocol.
22 Pesticide residues As per European MRL's limits of 1-9-2008.
The APEDA authorised Laboratory are ISO
17.025 certified pesticide residue field tests
report codes are traceable via the packing list.
Table 2.2

* Tolerances in % refers to the amount of examined fruit (not cluster) out of a


representative quantity taken on a 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.

EXPORT SPECIFICATION OF DIFFERENT COUNTRY


Variety Middle East Holland/ Germany U.K.
Thompson Berry Size: 15 mm Berry Size: 16mm Berry Size: 18 mm
Seedless Colour white Colour white /amber. Colour Milky white
/amber. TSS 17- TSS >18 brix /amber. TSS >18
18 brix brix. No variation
in size

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Sharad Berry Size : 15 mm Berry Size : 16 mm Berry Size : 18 mm
Seedless Colour Black Colour Black Colour Black
Flame Berry Size : 16 mm Berry Size : 18 mm
Seedless Colour Pink Colour Pink
Packaging 4.5 kg / 9 kg 4.5 kg / 9 kg
pouch packing pouch packing
and 5 kg punnet and 5 kg punnet
packing packing
Storage 0-1 C 0-1 C 0-1 C
Temperature
Days 7-8 Days 21 days 21 days
required to
reach
destination
from JNPT
Table 2.3
*If necessary sample should be forwarded to the importer and it should be
representative.

14 | P a g e
CHAPTER 3
MAJOR QUALITY PARAMETERS FOR
EXPORT OF THE BERRIES AT POST
HARVESTING

15 | P a g e
Three major quality parameters for export of the berries at post harvesting are-

1. Size of the grapes


2. Bricks in the produce
3. Contamination due to pests.

Thompson seedless contributed nearly 90%of the total exported the European Union
and UK while Shared Seedless was the major variety that was exported to Middle East.
Quality of Thompson variety of seed with respect to the period of the procurement is
shown in the graphs below.

Quality of grapes at the time of reception.( Thompson Seedless )


Weeks Price paid Average Average Average Diseased
to Farmer weight of Size Brix grapes ( qt in
one bunch Kg )

4 38.54 290.45 16.5 17.98 Less than 1%


5 39.28 270.45 16.58 18.1 Less than 1%
6 39.12 286.46 15.43 18.4 Less than 1%
7 38.79 257 15.38 17.93 Less than 1%
8 41.40 294.74 15.67 18.14 Less than 1%
9 39.20 298.9 15.9 18 Less than 1%
10 39.67 311.5 15.6 18.2 Less than 1%
11 38.47 318 15.3 18 Less than 1%
12 41.83 325.1 15.8 17.8 Less than 1%
13 42.83 323.4 17 18 Less than 1%
14 42.34 288.6 17 17.6 Less than 1%
Average 41.90 296.78 16.01 18.01 Less than 1%
Table 3.1

3.1 WEIGHT OF GRAPES


From the table it can be established that Thompson varieties of grapes are generally
available after the January end of from the period of the February. In the start of the
season the average bunch weight is less as the grapes do not get much size and are
harvested. Each berry of his variety weight around 4-6 gms and each bunch has nearly
70-80 berries.

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Figure 3.1

3.2 AVERAGE SIZE OF THE GRAPES


From the table 2.2 it can be established that the size of the produce is less in the start of
the season as compared to the mid and the end of the season. From the below graph it
is easily seen that the size of the fruit is height at end of the season which implies a
better quality according to UK and EU Standards.

Figure 3.2

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3.3 AVERAGE BRIX OF THE GRAPES
From the table 2.3 it can be clearly seen that there is not much variation in the brix of
the fruit during the whole season. Brix of the fruit also depend on the irrigation of the
field. If there is rain or the just irrigated, then the average brix in the grapes will increase
and make it unsuitable for the grape export. More brix means more sugar content in the
grapes which increase its chance contamination during transportation of grapes.

Figure 3.3

3.1 PRICE PAID TO THE FARMER DURING THE


SEASON
It can be seen that the farmers are getting the lower price at the start of the season and
price go high as the season comes to end. The price of the grapes depends mostly on
the size of the grapes the demand and supply of grapes in the market.

The size of produce is giving better returns to the farmer at the end of season. It can
also be inferred that in the late season due to the constant demand and decreased supply
from the domestic market the price of grapes is going on the higher side.

18 | P a g e
Figure 3.4

Thus it can be seen that the quality norms are very stringent for the export to the
countries of European Union and UK. The processing cost for the exports to these
countries is very high and the risk of rejection is also very high so it is very risky
business to exports to these countries. It is very high best on the part of field fresh that
their procurement procedure is very good that the diseased material reaching the pack
house is always less than 1% which symbolizes good procurement practices and good
logistics operation at Field Fresh Foods.

Company can also plan to supply the fruits to the local markets are also fetching good
prices in the metropolitan cities. Also, the transportation cost and quality requirements
are less so the margins on the grapes will also increase and company will also mark its
local presence.

19 | P a g e
CHAPTER 4
CHAIN OF EVENTS IN GRAPES EXPORT

20 | P a g e
The variety of grapes that is exported from the Nasik region mostly this time is Sharad
Seedless and Thompson Seedless. Out of the two varieties Sharad is the black variety
and Thompson Seedless is green variety of table grapes. Sharad takes 100-110 days to
harvest after the flowering stage so the yield starts from the month of late December. It
is mostly exported to ME as the quality assurance parameters are less binding on the
Middle East than to the European Union.

4.1 RESIDUE ANALYSIS


Sampling of grapes for residue analysis is usually done 10-20 days before harvest. 5 kg
sample is taken randomly from each farm, in which 3 kg is crushed for testing
immediately and 2 kg sample is kept in cold storage foe 45 days till the consignment
reach destination without any hindrance. There are eight authorized institutions
throughout India that can conduct residue analysis test. For this test, they charge Rs.300/
sample for one pesticide and Rs. 7500/ sample for all 87 chemicals. APEDA will give
50% subsidy for reside analysis. This year National Horticulture Mission (NHM) has
given 100% subsidy for residue analysis test of all horticultural produce. Residue
analysis report will be given to farmers within 6- 8 days. The residue analysis test is
done for 92 chemicals.

4.2 HARVESTING
Harvesting is done in morning hours based on the specifications of importer.
Weighing is done immediately. The quantity harvested is entered in farmer’s registry.

4.3 KNITTING AND SORTING/ GRADING


Afterwards knitting of non-uniform and water berries is done followed by sorting and
weighing as per importers requirement. Usually Export specification will be followed.

4.4 WEIGHING AND PACKING


Grapes are usually packed in three types of Cardboard boxes for export Each box will
have to be packed with grape guard, tear off liner and bubble sheets for Europe. For
Middle East, each box has to be packed with paper cuttings, along with grape guard
tape to hold two boxes.

21 | P a g e
a) 5 kg Punnet packing
In this 500 gm transparent punnets are used. Totally 9-10 punnets are needed in
each 5 kg Card board box. The punnets are imported from South Africa and
Italy, from last one year UK and European imports are demanding grapes in
punnet packing only.

b) 4.5 kg Pouch packing


9 plastic pouches of approximately 500 gm are kept inside 4.5 kg card board
boxes. The demand for this type of packaging has decreased considerably with
arrival of punnets. The cost of pouch will be around 50 paise each.

c) 9 kg Pouch packing
17-18 plastic zip pouches of approximately 500 gm are kept inside 9 kg card
boxes. The demand for this type of packaging has decreased considerably with
arrival of punnets.

Cost of Packing for UK & EU


Cost Centre of Packing 5kg Box 40ft Container(14.5 MT)
Cost box @ Rs.5.5 /kg 27.5 80000
Punnet @Rs 5/ punnet 50 26100
Grape guard @1.66/kg 8.30 24070
Bubble sheet @16 paise/kg 0.8 2320
Tear off Liner @39/kg 1.95 5655
Total 88.75 138145
Table 4.1

4.5 PRE-COOLING AND COLD STORAGE


Pre –cooling is done at 0-9 C for 6- 8hours.Usually cold stored for 5-8 days
depending on export suitability. For storing the produce for 6-8 days, Rs.5 kg is
charged.

4.6 PALLETIZATION

Wooden pellets are used to keep card boxes with in the containers. Grapes are
exported in 40 ft container. Each container can hold 20 pallets and carries 14.5
MT of grapes.

Package One Pallet 20 Pallets/Container


9kg Card Board Box 80 Boxes 1600 Boxes
5kg Card Board Box 120 Boxes 2400 Boxes

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4.5kg Card Board Box 160 Boxes 3200 Boxes
Table 4.2

4.7 Before palletization

a) AGMARK certification is compulsory, which is issued by Directorate of


Marketing and Inspection officer of concerned area. AGMARK certification
costs around 0.2 % of the FOB value. Usually this charge comes to around
Rs.3000/Container.
b) Fumigation certificate: As wooden pallets are used to keep bpxes in
container. Fumigation certificate is necessary for grape export. This will be
issued by Private certified Pest control agency or pellet supplier fumigation
charge is Rs 20-25 / pallet. So for a 40 ft container containing 20 pallets,
this charge may end up at Rs 400-500.
c) Phyto Sanitary certificate :( PSC) It can be availed from directorate of plant
protection, Quarantine and Storage, Ministry of Agriculture. Usually in
Maharashtra District Superintending Agricultural Officer (SAO) will look
after procedures, For issuing PSC usually 0.2% of the FOB value is charged.

Following information is collected from Exporter for issue of PSC for


Grapes:
 Application
 Copy of Import Permit
 Letter of credit/ agreement
 Performa invoice
 Copy of Import Export code
 The white and green copy of residue test report
 Container loading sheet/Packing list.
 Copy of declaration by farmer
 Farm inspection report
 Exporters decalaration.
 Pack house recognition certificate issued by APEADA.
 Self- certified copy of the Certificate of AGMARK Grading (CAG)
ISSUED BY the concerned Office of Marketing and Inspection.
 A Challan of prescribed fess paid for inspection.

d) Stuffing Permission: It is issued BY Central Excise and Customs


department. Stuffing permission is the permit to export a good to a particular
place / nation from central excise. It is life time permission.

Quality parameters such size, packing, temperature requirements should be


according to the importers specifications. It is better to get requirement from

23 | P a g e
the importer in writing in Purchase order. Pack the material strictly as per
the sample provided by the importer’s requirement.

4.8 LOADING OF CONTAINER


Refer container usually comes from JNPT to the farm gate. While loading the grape to
container, Central excise officer will inspect the commodity as per the purchase order
and seal the container. Once the container is sealed, it cannot be opened by anybody till
it reaches its destination.

Usually pack house order charge Rs 15/ Kg for labor, harvesting, transport to cold
storage sorting, grading, packing loading to container. This Rs 15/ kg includes
commission agents/packers margin of Rs.5-6.5/kg. It does not include the package
material cost, cold storage costs and diesel and electricity charges. Totally the
procurement cost comes roughly to around Rs 18/ kg including cold storage charges.

Transportation Charge to carry a 40ft refer container to JNPT, Mumbai


Sr. No. From Transportation Cost
1 Nasik Rs 20000/Container
2 Pune Rs 18000/Conatainer
3 Sangli/ Tasgaon Rs 25000/Conatiner
Table 4.3

4.9 PROCEDURE OF SHIPMENT


Services of customs House Agents (CHA’s) to be reserved to carry out necessary
logistic and paperwork required for export. Job like space for exports, order for the
container, custom clearance of origin etc. is carried out by CHA. An efficient and
competent CHA should be appointed.
Following is the list of documents to be provided to CHA.

 Letter of Credit (if available)


 Invoice
 Certificate of origin.
 Phyto sanitary certificate
 Packing List ( if items are more )
 Customs / Excise Formalities and charges.

For agro exports, excise duty is not applicable. Customs Duty @ 1% with respect to the
cost of the invoice is charged while processing the documents.
Terminal Handling charges for 40 ft container is Rs.15000

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Sea freight from JNPT to different foreign Ports:

 To UK and EU: Rs.137690


 To Middle East: Rs.68841

4.10 POST LANDING COST


Post landing cost includes unloading, cold storage, transportation, import duty and
importers commission for the year 2022-23

Country Rs/kg
UK 28.22
European Union 26.20
Dubai 12.06
Table 4.4

IMPORTERS COMMISSION
EU: 8 %
Middle East: 5%
Residue Analysis test in the importing country costs around Rs 25000/ sample

This test is done only in UK and European country. If rejected the labour charge and
dumping costs should be paid by the exporter.

4.11 MODE OF PAYMENT


Normally in the trade of agro exports (expect onion, rice and other cereals mango pulp)
importer never provides Letter of credit (L/C) Such export is done on consignment basis
(payment as per actual sales) Exports get the payment after deducting port charge,
transportation and commission etc. of the importing country. In certain country export
is undertaken on the fixed rates. Market Credit of the importer should be checked before
entering into the trade. Importer’s credit can be checked by international credit
organizations like Dun and Bradstreet. Export Credit Guarantee Corporation of India
(ECGC) also undertakes such type of credit certification work.

Sales proceed gets deposited in the bank in foreign currency. Export documents
including Export Promotion (EP) copy should be retained by exporter.

The profit involved in export of Grapes

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The grapes are generally exported 40 ft. container which can hold 20 pallets.
The total capacity of 40 ft. container is 14500 of Grapes.

Profits involved in Exporting 14.5 MT Grapes ( 40ft container)


Particulars UK EU Dubai
Cost of grapes @ Rs.35/kg to EU/UK 551000 551000 406000
& Rs. 28/kg for Dubai
Pre-Cooling & Cold Storage @Rs. 5/kg 72500 72500 72500
Handling and Packaging cost @7/kg 101500 101500 101500
Cost of Packing Material 138145 138145 138145
Transportation charge to JNPT 15000 15000 15000
Sea Freight for 21 days to Europe & 7 137690 137690 68841
days to Dubai
Terminal Handling Charge 15000 15000 15000
Customs Charge @1 of Invoice 15000 15000 15000
Residue Analysis Test (50% Subsidy 3700 3700 -------
from APEDA)
PSC 250 250 250
Fumigation 400 400 400
AGMARK @0.2% of Invoice 3000 3000 -------
Post Landing Testing of Grapes 25000 25000 -------
@25000/ Sample
Post Landing Charges 409287 380000 175000
Total Cost 1487472 1458185 970861
Price Realization at the Destination 1754500 1667500 1087500
Market
Expected profit/ Container 267028 209315 98639

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CHAPTER 5
CONCLUSION

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CONCLUSION
 The advent of new varieties having high consumer preference and technical
advancement in cultivation has made this crop more popular.
 Owing to the nutritional and medicinal values of the fruits, there is preference
among the consumers in the domestic and international markets.
 Thomson seedless and Sharad seedless variety is best suited for cultivation in
the tropical areas. This variety is one of the best varieties suitable for export
purpose and it is gaining popularity among consumers.
 Most of the Grapes produced is consumed locally and about 1 percent is
exported. The exports have not been substantial since the international standards
were not known.
 Of late, Indian grapes have penetrated into the European Union since suitable
varieties conforming to international standards are being produced. Karnataka
has exported about 2000 MT to other countries during the last few years. There
is potential for export to the United State of America also. Diseases such as
Powdary mildew, Downy Mildew, etc., have created problems in obtaining
economic yields.
 Proper varietal selection crop & post-harvest manages, infrastructure such as
cold-chain facilities for marketing, etc. will augment the cultivation of quality
grapes and will help in increasing the exports to a tune of about 20,000 – 30,000
MT tons.
 In this background, India can definitely make a dent in grapes trade in the world
market.
Aditionally, these factors need to be considered:

 Compititors in the market and their purchase / pricing strategy,


 Entry level and packout level quality parameters/documents filled.
 Flow chart of total export process.
 Just concentrate on Thompson seedless as it accounts for 90 % of Export to
Europe.
 Packhouse requirements for global gap Audit to get quality produce.
 Grape net and Global Gap System/Process.
 Quality of grapes starts from field hence start process from identification of field
SOP.

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