Comprehensive analysis of The Quality Assurance for the export of grapes for The Year 2009 of Adani Agrifresh

Limited
SUBMITTED TO

Mr. Uday Kadam.

Submitted By

SOLAT DATTATRAYA GANGARAM

PGDABM BATCH 2008-2010.

UNIVERSITY OF MUMBAIS GARWARE INSTITUTE OF CAREER EDUCATION & DEVELOPMENT VIDYANAGARI, KALINA, SANTACRUZ (EAST), MUMBAI 400098.

DECLARATION

This to declare that I Mr. SOLAT DATTATRAYA GANGARAM a student of Garware Institute of Career Education and Development, University of Mumbai, pursuing Post Graduate Diploma in Agriculture Business Management (batch 2008-10). I have given original data and information to the best of my knowledge in the project report titled Comprehensive analysis of the Quality assurance for the export of grapes for the year 2009 of Adani Agrifresh Limited. And that no part of his information has been used for any other assignment but for fulfillment of the requirement towards the completion of said course. I also agree in principle not to share the vital information with any other person outside the organization and that I have not submitted it before for any award or any other title degree or diploma.

Dattatraya Solat
G.I.C.E.D., Mumbai.

date:
Place.

ACKNOWLEDGEMENTC KN
T I owe a great deal to GARWARE INSTITUTE OF CAREER EDUCATION AND DEVELOPMENT for laying the building blocks of logic and pragmatism in our life. This report, in a way is a reflection of these values. The organizational traineeship segment (OTS) provided us with a unique opportunity of working with an organization. I would like to express my earnest gratitude and thanks to Mr. Arun Kshirsagar, director for his support and kind blessings. I am also thankful to our faculty guide Mr. Shirish Patil & Mr. Ashok Govande for his encouragement and guidance throughout the project. I am highly indebted to Mr.uday kadam for providing me with exceptional opportunity of working for a dynamic organization like Adani agri fresh (ltd). I am very grateful to Mr. Ganesh Sadaphal who guided me in the project period. My heart felt thanks to my project guide Mr. Ashok Govande for constant follow-up and valuable suggestions provided throughout the project. He has always been an ever lasting source of inspiration and guidance. I also thank all the respondents who have given their valuable time, views and authentic information for this project including Mr. Ashok Govande . I also grateful to all of them who are directly or indirectly involved in driving this project to a success. I would like to thank my friends and colleagues for their continuous support.

Executive Summary
On the basic of internal data study of the company it can be said that quality control parameters are very stringent for export to Europe Nations.

Research Methodology: internal data study of the company Important Findings: most important finding from the secondary data can be
represented by two graphs. As shown below major varieties of grapes that are export in the year 2008-09 by field Fresh are Thompson Seedless. Shard seedless is exported mostly to Dubai and Middle East while Thompson Seedless is exported mostly to European nations. (is X-axis parameter is it no.of week) Quality and price related parameters are shown below.

For Thompson Seedless.

Average price paid to farmers for this variety of grapes around Rs 35.00 Average weight of bunch recorded is 225 gm and the brix content is around is18.00%Size of the berry was 16.35 and the diseased produce received at the pack house is less than 1%.

For Sharad Seedless Variety.

INDEX
Sr.no 1 Chapters Chapter -I 1.1 Introduction 1.2 Adani Group Profile 1.3 Grapes 1.4 Market Scenario 1.5 Period of price fluctuation Page no. 9 11 13 14 14

1.6 Objectives of research Chapter - II 2.1 Export Of Grapes 2.2 Export Specification 2.3 Export Specification Of Different Country Chapter III 3.1 Weight Of The Bunch 3.2 Average Size Of The Grapes 3.3 Average Brix Of The Grapes 3.4 Price Paid To The Farmer During The Season Chapter IV Chain of events in Grapes export 4.1. Residue Analysis 4.2. Harvesting 4.3 Knitting and Sorting/ Grading 4.4 Weighing and Packing 4.5 Pre cooling and Cold Storage 4.6 Palletization 4.7 Before palletization 4.8 Loading of container 4.9 Procedure of Shipment 4.10 Post Landing Cost:

16 18 19 22

25 26 27 28

31 31 31 32 33 33 33 35 36 37 41

Chapter V Conclusion

CHAPTER I INTRODUCTION, MARKET SCENARIO, PRICE FLUCTUATION, EXPORT SPECIFICATION OF GRAPES.

1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tons) 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
9

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 2003-04 US $166 million and that of vegetables US $ 205 million .Indias export of fruits and vegetables is more concentrated towards Asian region. Asian region accounted for 75% of total fruits and vegetable export 2003-04.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 tones of fruits having productivity of 16 MT per hectare of , which is fairly good when compared to countrys average Of 12 MT. it grows commodities like grapes, pomegranate, mango, sapota , oranges ,lime, strawberry, jackfruits etc in large quantity .The 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 tones. 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 more costly and complex. Timely and procurement of fruits and
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vegetable in bulk is of immense importance for exporters. Transportation plays an important role in fruits and vegetable marketing. 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 ADANI GROUP PROFILE

Adani Group, founded in 1988, is one of the fastest growing business houses in India. The Adani Group has its roots in its flagship company, Adani Enterprises Ltd. (formerly known as Adani Exports Ltd.), which has been established by Mr. Gautam S Adani in 1988 as a partnership firm with an initial capital of Rs. 5 lacs.
11

 Through his entrepreneurial vision, global aspirations, hard work, quality standards and customer centric approach, Mr. Gautam Adani has transformed the Group in one of its kinds which has crossed the total revenue of INR 180 billion on March 31, 2007. Other company of adani group1- Adani Agrifresh Ltd 2- adani wilmar ltd 3- adani logistics ltd 4- adani enterprise ltd

ADANI AGRI FRESH LTD. Prolonging the shelve life of fruits and vegetables and there by creating a business plan. Project conceived by June 2005 and completed in 14 months, 3 CA stores within a year including procurement of land.

FOCUS Strong backward integration for product availability.

Developing procedures and systems in both infrastructure and manpower to meet the world standards. To tap potential of Indian market.

VISION To provide safe, hygienic, and fresh quality fruits. Investment in technology and infrastructure to build and integrated supply chain of fruits and vegetables.

12

 Build strong network with farmers, right from their growing by assisting them in technology.

To bring transparent product handling system that will benefit farmers.

ACHIEVEMENT Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric pack houses in Shimla district at three different placed Viz. Rampur, Sainj and Rohru. First time in India introduced Controlled Atmospheric storage facility. First time in India introduced Optical Sorting-Grading facility for fruits. Procured 18000 MT apples from Shimla and Kinnor district of Himachal Pradesh. Set up strong marketing network in 30 Major towns of India. Introduced first brand Farm Pik in apple. PROPOSED PLAN FOR MAHARASHTRA During very first season (2007-08) Adani Agrifresh Ltd. exported 50 Container of Grapes to European Nations from Nashik District. .Other products that company is planning to export are Pomegranate, Onion, Banana from Maharashtra. .

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. Now a days grapes re produced in Latur district of Marathwada. However ,Nasik and Sangli districts are ahead in the production of grapes in a scientific manner.
13

Figure

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. Total export of Grapes from 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.

14

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 2003-04. 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.

1.5 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 : (Make separate colomb indicating Export and local price)

Variety Sonaka Tas-e-Ganesh Sharad seedless Thompson seedless Flame seedless

Price Rs/kg 25-30 10-15 25-35 15-20 25-28

15

Sangli:
It is second largest grapes growing and exporting district in Maharastra.Export quality grapes wont come to here. So exporters and traders go directly to farmers 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 (2007-08) the farm gate procurement price of export quality grapes fluctuated with the time like this.

February ends 35-40 /kg March15-30: Rs 50 / kg March 30 onwards Rs 60-65/kg

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 Sonaka Tas-e-Ganesh Sharad seedless

Price Rs/kg 25-30 10-15 25-35

1.6 OBJECTIVES OF RESEARCH

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Objectives 1 To study the quality assurance of grapes at the time of procurement at the pack house Sub objectives 1. To find the average size of Berries during the season 2. To find the average brix of the berries exported this season 3. To find the average bunch weight of the different varieties of grapes.

Objectives 2 To find the average price paid to the farmer. Sub objective: 1. To find out the price to the farmer with respect to the quality of grapes and the time of procurement. 2. To study whether the price is determinant of demand of the grapes or the quality of the grapes.

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CHAPTER-II
EXPORT OF GRAPES

2.1 EXPORT OF GRAPES

Major export is to Middle East, UK, Holland, and Germany. Varieties in Demand:

Name of the Varity Description THOMPSON Round berries

Berry size 16 mm to 18 mm

Harvesting period January to April

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SEEDLESS SONAKA SHARAD SEEDLESS FLAME SEEDLESS

green color, Seed less variety. Elongated 16 mm to 18 mm berries,green less variety. Round 16 mm to 18 mm berries,Blackish red colour,seedless variety. Round 16 mm to 18 mm berries,Blackish red colour,seedless variety.

January to April January to April

January to April

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.

2.2 EXPORT SPECIFICATION (HOLLAND)

Indian white Thomson seedless GRAPES - SPECIFICATIONS Healthy intact Fresh White Seedless Grapes
A B Variety General for the whole lot Thompson Uniform in terms of class, origin,size,colour and degree in ripeness.

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Sr. no. 1 2

Characteristic Temperature Berry Colour, two separations

Description Precooling, storage and transport about 0 - 1 degree Celsius Opaque milky pale green colour or amber. Not dark green or glassy. . Berries must be fully developed, ripe, turgid ( firm ); not bladdery, wilted, over mature; no 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, watercore. No abnormal exterior moisture. Free from decay-decomposition of fungus development. Free from decay-internal insect infestation or internal damage. Free from slip skin, boytritis, injuries, shrivelling / witting, cold damage, unspecified internal quality defects, skin damage, wind rub marks, unspecified appearance defects.

Berries - General Appearance with 0 % tolerance.

Berries-General Appearance with 3 % tolerance

Berries-General Free from split berries, mould on stems, sulphur 5 Appearance with 5 % burn, visible residues, loose berries. tolerance Berries-General 6 Appearance with 8 % Free from sunburn. tolerance Berries-General 7 Appearance with 10 % Free from dry stems and dirt. tolerance Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a representative quantity taken on an 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 Evenly coloured skin should be free from pest damage or physical damage. No bruising, hail 8 Skin Blemish marks, splits, cracks, open cuts or rots, sunburn, sulphur bleaching
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9 10

Vine Condition Shape/Dimensions Organoleptic

Stems and pedicles fresh and green, not dry and brown. Bunch - shape typical of variety; not straggly or over tight;- round or slightly oval, not excessively elongated. Sweet and refreshing flavour balanced by a hint of acidity. Juicy, with tender skin and crisp, crunchy flesh. None, free from any foreign odour minimum - 16 degree Brix. Max 20 Brix 18:1 minimum, Target 20 : 1 Minimum 15 mm, as Regular, Large 16- 18 mm, Extra Large 18-20 mm. XXL.20 mm and up. Target average16 - 18 mm. Minimal dropped berries (shatter) in packaging: tolerance up to 4 % by weight, Target zero. 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. 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. No insects, spiders or mites to be present in the product or packaging. All produce supplied to this specification must have been grown in compliance with the Apeda NRC document and relevant GlobalGap protocol. As per European MRL's limits of 1-9-2008. The APEDA authorised Laboratory are ISO 17.025 certified pesticide
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11 12 13 14 15 16 17

Flavour Texture/Consistency Aroma Physical Sugar Content Sugar/Acid Ratio Berry Size, printed on the Label Dropped Berries

18

Pouch weight

19

Punnet weight

20 21

Insects, Spiders Additional Information

22

Pesticide residues

residue field tests report codes are traceable via the packing list.

EXPORT SPECIFICATION OF DIFFERENT COUNTRY

Variety THOMPSON SEEDLESS

Middle East

Holland / Germany Berry Size: 15 Berry Size: mm Colour white 16mm Colour /amber. TSS 17- white /amber. 18 brix TSS >18 brix

U.K Berry Size : 18 mm Colour Milky white /amber. TSS >18 brix. No variation in size

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SHARAD SEEDLESS

Berry Size : 15 mm Colour Black

Berry Size : 16 mm Colour Black Berry Size : 16 mm Colour Pink 4.5 kg / 9 kg pouch packing and 5 kg punnet packing

Berry Size : 18 mm Colour Berry Size : 18 mm Colour Pink 4.5 kg / 9 kg pouch packing and 5 kg punnet packing 0-1 C 21 days

FLAME SEEDLESS Packing

Storage Temp . Days required to reach Destination From JNPT

0-1 C 7-8 Days

0-1 C 21 days

If necessary sample should be forwarded to the importer and it should be representative.

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CHAPTER-III MAJOR QUALITY PARAMETERS FOR EXPORT OF THE BERRIES AT POST HARVESTING

Three major quality parameters for export of the berries at post harvesting are1. 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.
24

Ll. 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 )

Week 4 5 6 7 8 9 10 11 12 13 14 Total Price paid to farmer 38.54 39.28 39.12 38.79 41.40 39.20 39.67 38.47 41.83 42.34 41.90 40.05 Average weight of one bunch 290.45 270.45 286.46 257 294.74 298.9 311.5 318 325.1 323.4 288.6 296.78 Average Size 16.5 16.58 15.43 15.38 15.67 15.9 15.6 15.3 15.8 17 17 16.01 Average Brix 17.98 18.1 18.4 17.93 18.14 18 18.2 18 17.8 18 17.6 18.01 Diseased grapes ( qt in Kg ) Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 1 % Less than 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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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

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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

27

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 .

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3.4 PRICE PAID TO THE FARMER DURING THE SEASON.

Observation: From the table 2.4 it can be seen that the farmer 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. Inference: it can be inferred from the table 2.4 that 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 are going on the higher side.

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Thus it can be seen that the quality norms are very stringht 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 there 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. Recommendations: 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 marks its local presence.

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Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT

31

CHAIN OF EVENTS IN GRAPES EXPORT

The varity of grapes that is exported from the Nasik region mostly this time is Sharad Seedless and Thompson Seedless .Out of the to 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 exportd to ME as the quality assurance parametees 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 .The list of these authorized residue testing institutions are given in the annexure. For this test,they charge Rs.300/ sample for one pesticide and Rs 7500/ sample for all 87 chemicals. APEDA will give 50% subisidy foe 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 68 days. The residue analysis test is done for 92 chemical. 4.2. Harvesting: Harvesting is done in morning hours based on the specifications of importer. Weighing is done immediately. The quanity harvested is entered in farmers 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.Usally Export specification will be as follows.

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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.

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 Itly From last one year UK and European imports are demanding grapes in punnet packing only. 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.

b)

c) 9 kg Pouch packing : 17-18 plastic zip pouches of appoximaely 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 and EU Cost centre of packing Cost box @ Rs.5.5 /kg Punnet @Rs 5/ punnet Grape guard @1.66/kg 5 kg Box 27.5 50 8.3 40 ft container (14.5 MT) 80000 26100 24070

33

Bubble sheet @16 0.8 paise/kg Tear off Liner @ 39 /kg Total 1.95

2320 5655

88.75

138145

4.5

Pre cooling and Cold Storage : Pre cooling is done at 0-9 C for 68hours.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 9 kg Card board box 5 kg Card board box 4.5 kg Card board box 4.7 Before palletization,
a)

One pellet 80 boxes 120 boxes 3200 boxes

20 pellats/ container 1600 boxes 2400 boxes 3200 boxes

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.

34

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: 1. Application 2. Copy of Import Permit 3. Letter of credit/ agreement 4. Performa invoice 5. Copy of Import Export code 6. The white and green copy of residue test report 7. Container loading sheet/Packing list. 8. Copy of declaration by farmer 9. Farm inspection report 10.Exporters decalaration. 11.Pack house recognition certificate issued by APEADA.

35

12.Self- certified copy of the certificate of agmark Grading (CAG) ISSUED BY the concerned Office of Marketing and Inspection. 13.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 the importer in writing in Purchase order. Pack the material strictly as per the sample provided by the importers 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 can not be opened by anybody till it reach its destination. Usually pack house order charge Rs 7/ Kg for labor, harvesting, transport to cold storage sorting, grading, packing loading to container. This Rs 7/ kg includes commission agents/packers margin of Rs.2-2.5/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 12/ Kg including cold storage charges.

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

Sr . No 1 2 3 From Nasik Pune Sangli/ Tasgaon Transportation cost Rs 20000/ container Rs 18000/ container Rs 25000 / container

4.9

Procedure of Shipment : Services of customs House Agents ( CHAs) 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.

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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 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 2008-09. Country UK European Union Dubai Rs/kg 28.22 26.20 12.06

Importers commission
-

EU -8 % Middle East -5%

Residue Analysis test in the importing country costs around 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.

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
38

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. Importers credit can be checked by international credit organizations like Dun and Bradstreet. Export Credit Guarantee Corporation of India( E C G C) also undertakes such type of credit certification work . Sales proceed gets deposited in the bank in foreign currency. Export documents including Export Promotion ( E P ) copy should be retained by exporter.

The profit involved in export of Grapes

Remove this part it doesnt match..

The grapes are generally exported 40 ft. container which can hold 20 pallets. The total capacity of 40 ft. container is 14500 of Grapes. The profit involved In Export of Grapes. The grapes are generally exported in 40 ft. container which can hold 20 pallets. The total capacity of 40 ft container is 14500 kg of Grapes.

Profit involved in Exporting 14.5 MT Grapes.( 40 ft container) Particulars Cost of grapes @35/ kg to Europe & Rs 28/kg for Dubai Pre cooling and cold storage @Rs.5/kg UK 551000 EU 551000 Dubai 406000

72500

72500 101500

72500 101500

Handling and Packing cost @ Rs.7/kg 101500

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Cost of packing material Transportation charge to JNPT Sea freight for 21days to Europe & 7 Days to Dubai. Terminal handling charge Customs charge @ @1 of Invoice. Residue analysis test ( 50 % subsidy from APEDA) PSC Fumigation AGMARK @ 0.2 % OF Invoice. Post landing testing of grapes @ 25000/ Sample Post landing charges Total cost Price realization at the destination Market Expected profit/ container.

138145 15000 137690 15000 15000 3700 250 400 3000 25000 409287 1487472 1754500 267028

138145 15000 137690 15000 15000 3700 250 400 3000 25000 380000 1458185 1667500 209315

138145 15000 68841 15000 10000 --------250 400 --------------------175000 970861 1087500 98639

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CHAPTER V 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 Grapess produced is consumed locally and about 1 per cent 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 and post harvest management, 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. Remarks Add,

Compititors in the market and there purchase / pricing strategy,

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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 fieldSOP.

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