EXPORT ANALYSIS

KAPPEC LTD.

GENERAL INTRODUCTION
1.1 INDUSTRIAL BACKGROUND

Trade and commerce have been the backbone of the Indian economy right from ancient times. Textiles and spices were the first products to be exported by India. The Indian trade scenario evolved gradually after the country’s independence in 1947. From the 1950s to the late 1980s, the country followed socialist policies, resulting in protectionism and heavy regulations on foreign companies conducting trade with India. India’s international trade situation improved when Prime Minister Rajiv Gandhi reformed the trade policies in the late 1980s. With tax reforms, deregulations and privatization initiatives, India has attracted the global market’s attention. Trade, both domestic and inter -national, is the pivotal link connecting production and consumption. Hence, traders and merchants have as important a role in an economic system as producers and consumers do. Traders and merchants are a highly heterogeneous cross section, operating at vastly diverse scales, regions and activities. Each level, right from the village kirana shop keeper to the allconquering global conglomerates, is important on its own and has specific sets of comparative advantages as well as operational difficulties. The Indian economy experienced a change in its structure, competitiveness and global identity in the last two decades, which has resulted in rich growth dividends during the post-2000 period. The economy posted an impressive average annual growth close to 9 per cent during the period 2003-04 to 2007-08. Agriculture grew at an average annual rate close to 5 per cent, industry close to 10 per cent and
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services at around 10 per cent during the period, indicating that the high growth achieved was broad-based. This change was facilitated by a sharp rise in investment rate in conjunction with robust consumption. The improvement in important macro-economic coordinates has been evidenced by the facts that; inflation remained moderate; fiscal consolidation proceeded apace; and external sector remained robust during the period. Business and trade have acted as an important facilitator in the process and also been a major beneficiary of the improved outcome. The global financial meltdown and the economic recession in developed economies adversely affected the Indian economy. This resulted in a slowdown in the rate of growth of the Indian economy from 9.2 per cent in 2007-08 to 6.7 per cent in 2008-09. The slowdown of the Indian economy was of no surprise, with most of the world in deep recession. What was a surprise was the speed and vibrancy with which the Indian economy turned around. It is now widely recognized that India was not only one of the economies least affected by the global growth slowdown, but also one among the fastest to achieve a recovery from the economic slowdown. The turnaround came in the second quarter of 200910 with a growth of 8.6 per cent. According to the revised estimates, GDP at factor cost at constant prices in the year 2009-10 has grown by 7.4 per cent, as against 7.2 per cent in the Advance Estimates. The upward revision in the GDP growth rate is mainly on account of the extra-ordinary buoyancy shown by the industrial sector and the better-than-anticipated performance of the farm sector. Trade and other services picked up, precipitating the on-ongoing economic recovery. As for international trade, in April 2010-11, exports grew by 36.2 per cent compared to their level in April 2009-10. Exports witnessed a positive growth for
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the sixth consecutive month since November 2009. Imports have also picked up. In April 2010-11, Indian imports were 43.3 per cent higher than their level April in 2009-10. Non-oil, non-bullion imports, which largely reflect the imports of capital goods needed for industrial activity and imports needed for exports, were higher by 36.4 per cent in April 2010, compared to the corresponding period of the previous year. This, coupled with the impressive growth in the domestic production of capital goods, and the robust growth in capital formation in the recent quarters as evident from the National Accounts, is indicative of the magnitude of capacity addition taking place in the economy. Strong and sustained investment growth is a pre-condition for sustained economic growth; so is the strength in the growth in consumption, especially of the lower economic stratum. Agriculture is the major driving force of Indian economy. It accounts for the largest chunk of employment and gross domestic product, a source of raw material for industry and a major source of foreign exchange earner at present and potentially even more in the decades ahead. Domestic agriculture can substantially contribute to the balance of overseas payments either by augmenting countries export earnings or by expanding the production of agricultural import substitutes this is termed as foreign exchange contribution of agriculture. In countries with a lagging agriculture sector and unmanageable food import bill, it would make better economic sense to expand food production. But once domestic agriculture is able to meet the basic requirements of domestic market; it may be a sound policy to exchange agricultural exp through sectoral diversification orts either of food or other agricultural products to increase the rate of development. Trade in agricultural goods can play an important role in promoting economic development especially in the less developed countries. The export of
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manufactured products and other essential commodities for the sustained developing countries. developing countries have comparative advantage in the production of agricultural goods and export of these goods is the main source of foreign exchange earnings. In an export led growth model of trade it would be to the advantage of the developing countries, to specialize in production of those goods where they have comparative advantage and to exploit the surplus production to earn as in ensuring rational allocation of resources. In, India ever since the planning has been used as a tool for rapid economic growth, the development of agriculture is given due importance. The importance of agriculture is felt not only in feeding additional mouths but also to earn foreign exchange through exports. Strength and resilience are the hall mark of India’s agriculture. Scarcity situation in many commodities ae over; and new challenges are emerging from surplus. India has a strong comparative advantage because of its very diverse agroclimatic conditions ranging from arid to heavy rainfall areas. Most of the areas have well distributed rainfall, sunshine and temperature conductive to the growth of a very wide range of tropical, subtropic, and temperate al fruits, vegetables and flowers. There are long uninterrupted Himalayan hilly region suitable for temperate and nut crops like Apples, Pears, Peaches and Walnuts. It then gradually descends forming sub-mountain regions and plains. There are also vast fertile plains and savannas suitable for a wide variety of crops. the valuable foreign exchange. Such a policy will lead to the use trade as an engine of growth, as well

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Global Exports The present total global exports are well over US$ 5000 billion. are accounting for a large share of the world trade in these commodities. medical and aromatic. W ith its agricultural predominance. Japan. India exports more of horticultural crops. vegetable. mushroom.EXPORT ANALYSIS KAPPEC LTD. root and tuber crops. Arts And Commerce Page 5 .This gives India the comparative edge for linking these markets as the third country export center. promoting crop diversification. nuts etc. Thailand Malaysia. floriculture. India occupies a special position in the developing world and should take a leading role in creating a favorable atmosphere for putting across the points of negotiation in favour of developing countries at the WTO negotiation. Singapore. The share In of agricultural commodities accounts for US$300 billions (6. compare to agricultural commodities. the share of agri-commodities has increased considerably. Further India’s geographical situation gives it the unique advantage of being at the center of most of the prosperous economies of the eastern world i. high-income elasticity. generating employment and above all providing nutritional security to the people. mainly because the developing countries have realised the importance of export to the development of their economy. Dayananda Sagar College of Science. Agricultural and horticultural products have a Therefore. middle east in the west and far east in east including countries like Iran. developing countries This situation makes developed countries to turn to the developing countries to meet their demand. Iraq.00 per cent). recent years. There has been a great deal of interest among the countries of the world to earn foreign exchange through export of agricultural commodities. Korea etc. Horticulture crops includes fruits.e. This sector has established its importance in improving land use.

Turkey. The important developing countries viz. Export of agricultural products is an important component the countries agrarian scene. Fruits comprise 61. Taiwan. in the world agricultural trade. and India account for two-thirds of the total horticultural exports. Philippines. Thailand. In 2000-01 agricultural export constituted 14. Argentina.4 percent in 2006-07. Wheat. Its present position in the Indian economy is quite significant as export contribute a great deal to the development of an economy through the foreign exchange earnings. Agricultural exports in 1995-96 constitute 19. Arts And Commerce Page 6 .. Agricultural exports comprised about 30 percent of the total exports from India during 1980-81 and the share dropped to 19 percent in 1990-91.00 per cent of it comes from the developing countries.87 percent in the total exports from India and this share has been decreased to 15.10 percent in the total exports and this share has been decreased to 10. China. Egypt also improving their export competitiveness. Dayananda Sagar College of Science.00 per cent of the horticultural exports of the World and 70. Brazil. Morocco.And this share has been increase to 29 percent in 2009-10.08 per cent in 1999-2000. Costa Rica. Other countries are India’s Export Indian agriculture has a distinct position in the World agricultural production. Mexico. It is the second largest producer of Rice. The share of Indian agriculture in the world export is less than one. its share is very less. fruits and vegetables and the largest producer of Milk. There are as many as 80 different fruits and 65-70 types of vegetables traded in the world market. Still.EXPORT ANALYSIS KAPPEC LTD.

were around 43 percent of expected exports. poultry and their value added products. Currently. in 2004. minor forest produce. vegetables. Dayananda Sagar College of Science. These zones receive assistance from Central and State Governments to improve efficiencies in supply chains of the identified products. flowers. Export Policy Majority of the agricultural exports are unrestricted except some items. export of pulses and sugar (excluding sugar that are subjected to a tariff rate quota in the United States and the EC) were prohibited. there are over 60 Agri Export Zones sanctioned by the Central Government and monitored by Agriculture and Processed Food Products Export Development Authority (APEDA). which are regarded as essential and sensitive.5% in 2006. In order to boost the agriculture exports government has set up Agri Export Zones. to maintain domestic supplies of these products in order to keep the price at a reasonable level.18 billion envisaged over 2002-10. dairy.EXPORT ANALYSIS KAPPEC LTD. India Trade: Market Share A significant boost to India’s trade in the late twentieth century resulted in the country getting the tag of an “emerging economy. just around 50 percent has been realized Moreover. of the total investment of Rs.17. For example. Vishesh Krishi Upaj Yojana (special vegetable products scheme) was introduced to promote exports of fruits. Commerce and Industry Minister Kamal Nath expects this figure to cross 2% in 2009.However. Arts And Commerce Page 7 . India’s share in the global market for merchandise and services rose from 1. exports from these zones during 2005-06.” According to a report published by the World Trade Organization (WTO) in May 2007.1% in 2004 to 1.

up from 18% in 1995. jewelry. The export import (exim) policy of India has laid guidelines for India to become a major player in world trade. the services sector accounted for 37% of the country’s total exports in 2006. Most of the exported goods are exempt from export duties. primarily to the US. comprehensive view needs to be taken for the overall development of the country’s foreign trade. The new exim policy states that reasonableness and consistency among trade and other economic policies is important for maximizing the contribution of such policies to development. India is among the world’s largest exporters of services related to information and communication technology (ICT). Foreign Trade Policy ( Exim-Policy ) Foreign Trade has gained immense importance in India in the recent years.EXPORT ANALYSIS KAPPEC LTD. India Trade: Exports Indian exports comprise mainly of engineering and textile products. It is also the key destination for business process outsourcing (BPO). precious stones. Arts And Commerce Page 8 .8% in 2005. sugar. According to leading management consultancy McKinsey & Co. In fact. it is Dayananda Sagar College of Science. Duties are levied on processed agricultural products. sheep. zinc and leather products. an all encompassing. goat and bovine leather. The foreign trade policy implies in its preamble that while incorporating the existing practice of enunciating an annual exim policy. According to the Information Economy Report 20072008. Backed by ICT-related exports. the ICT industry accounted for 5. up from 4. steel chemicals. India also exports services to several countries.4% of India’s GDP in 2006. the growth of India’s economy can match that of China (about 10% per annum) if the former eliminates the main impediments to trade. petroleum products.

EXPORT ANALYSIS KAPPEC LTD. there are over 60 Agri Export Zones sanctioned by the Central Government and monitored by Agriculture and Processed Food Products Export Development Authority (APEDA). of the total investment of Rs. were around 43 percent of expected exports. which are regarded as essential and sensitive. poultry and their value added products. export of pulses and sugar (excluding sugar that are subjected to a tariff rate quota in the United States and the EC) were prohibited. Arts And Commerce Page 9 . flowers. • Concentrate only on few products and minimum three countries. These zones receive assistance from Central and State Governments to improve efficiencies in supply chains of the identified products. Dayananda Sagar College of Science. dairy. In order to boost the agriculture exports government has set up Agri Export Zones. Vishesh Krishi Upaj Yojana (special vegetable products scheme) was introduced to promote exports of fruits. Currently. in 2004.However. to maintain domestic supplies of these products in order to keep the price at a reasonable level. just around 50 percent has been realized Moreover. vegetables. exports from these zones during 2005-06. if you are a beginner. minor forest produce. EXPORT TRADE PROCEDURE AND RELATED ISSUE • Select a “quality” product based on the export potential and demand • Select a particular overseas market. Majority of the agricultural exports are unrestricted except some items.18 billion envisaged over 2002-10. necessary to go much beyond and take an integrated approach to the developmental requirements of India’s foreign trade. For example.17.

EUCU (European Union Customs Union) and DRCAFTA (Dominican Republic – Central America Free Trade Agreement). • Get the full information of similar products of other manufacturers if already available in selected markets. To offer your product(s) to foreign buyers with a bargaining edge in order to capture the market.EXPORT ANALYSIS KAPPEC LTD. Dayananda Sagar College of Science. • Ensure that you can manufacture or procure from other sources the selected product(s) at the competitive prices and in sufficient quantity and will be able to meet the quality specifications. Arts And Commerce Page 10 . The International Monetary Fund (IMF) is another such organization influencing the trade industry through its policies. Often. Some of the largest trade blocs are NAFTA (North American Free Trade Agreement). International trade organizations: The World Trade Organization (WTO) is the most notable private organization that regulates trade among member nations. marketing techniques. FACTORS GOVERNING THE FOREIGN TRADE INDUSTRY The most eminent factors governing the international trade industry are: Trade blocs: These are created by multinational agreements to promote trade between two regions through mutual cooperation. With 153 member nations. terms of business etc. delivery schedule and other terms and conditions of the overseas buyer. trade blocs are characterized by free trade agreements (FTAs) which tend to eliminate tariff and non-tariff barriers. it represents over 95% of international trade. • Assess the degree of competition of product (s) which you propose to export in a particular market. their prices.

imposing trade barriers are against the concept of free trade. governments impose tariffs essentially on imports and not on exports. Quotas: Import quotas are the trade limits set by the government to restrict the quantity of imports during a specified period of time. foreign trade is expected to greatly influence international economics and politics. Some of the most common trade barriers are: Tariffs: Taxes levied on products that are traded across borders are called tariffs.EXPORT ANALYSIS KAPPEC LTD. Most commonly. Two most popular types of tariffs are: Ad valorem: This tariff involves a set percentage of the price of the imported goods. However. Subsidies help to either sustain economic activities that face losses or reduce the net price of production. a country’s government employs tariffs. Specific: This refers to a specific amount charged by the government on import of goods. embargoes and subsidies as trade barriers. With the opening up of new trade avenues worldwide. Trade barriers aim to hike the prices of imported products in order to secure the domestic industry against fierce competition from foreign products. Arts And Commerce Page 11 . TRADE BARRIERS Trade barriers refer to government-imposed policies to restrict international trade. Subsidies: Subsidies work to foster export by providing financial assistance to locally-manufactured goods. popularized by developed nations UNDERSTANDING TRADE BARRIERS Almost every trade barrier works as a tool to ensure a protectionism policy. duties. Dayananda Sagar College of Science. However.

In the modern world.EXPORT ANALYSIS KAPPEC LTD. Embargo: This is an extreme form of trade barrier. the government curbs consumer rights to enjoy competition in the market. A protectionism regime causes over-allocation of resources in the protected sector and exploitation or under-allocation of resources in free trade sectors. Exporting goods and services to other countries is a key part of a country’s economic development. EXPORT TRADE: DYNAMICS Dayananda Sagar College of Science. ECONOMIC IMPACT OF TRADE BARRIERS In times of flourishing international trade. which hampers growth. finished goods or services based on available resources. imposing trade barriers prevents the nation from fully realizing the economic benefits of such globalized trade. Embargoes prohibit import from a particular country as a part of the foreign policy. embargoes are imposed during wartimes or due to severe failure of diplomatic relations. Free trade environments offer greater and better choices in the market. Arts And Commerce Page 12 . focusing either on raw materials. which in turn leads to a decline in exports. This usually leads the country into economic disequilibrium. the protectionism regime that is employed to protect certain sectors actually tends to retard the growth of the entire economy. Exports of goods from one country to another involve the participation of customs authorities of both the countries. leading to enhanced consumer satisfaction. Export trade helps to create more jobs and boost a country’s economic growth. It also includes those countries through which the goods pass through. With trade barriers in place. Import restrictions affect international trade relations. Thus.

EXPORTS: TARIFFS AND DUTIES Tariffs or duties are taxes levied on the goods transported across the country of origin or other political boundary. A firm exporting goods and services to other countries requires an exports license from the country’s licensing authority. each country may follow different regulations. Specific tariff: This is the fixed tariff that does not change with the market value of a specific good. Exports are typically restricted to countries that are suspected of supporting or participating in terrorist activities. The different types of tariffs are: Ad valorem tariff: This tariff is a specific percentage of the value of a good being exported.EXPORT ANALYSIS KAPPEC LTD. Revenue tariff: The very purpose of this tariff is to raise money for the government that allows the business. However. Many countries negotiated bilateral or multi-party Free Trade Agreements (FTAs) to reduce or eliminate tariffs or duties between them. Exports across the globe are regulated. Exports Administration Regulations (EAR) controls the export of goods. Some products have a global exports restriction. Although this may reduce the immediate income generated by the government. and the exporter needs to select the appropriate category for the item to be exported. In the US. Dayananda Sagar College of Science. it will increase total economic activity in all involved countries. for specific sectors or in all categories. The goods or services to be exported are categorized into various sections across the countries. These tariffs act as a trade barrier and are used for protecting a company’s economy. Arts And Commerce Page 13 .

• C & F: It means cost & freight. such as identifying and removing internal constraints like bureaucratic red tape and fiscal duties. All future expenses like freight. The price includes even the freight charges till the destination.s.B: it means “free on board” the delivery of the cargo is given till the same is loaded on to the vessel.EXPORT ANALYSIS KAPPEC LTD. Additional measures help. he will immediately open the letter of credit or will send an advance remittance through the banking channels to the seller’s account. • To find out the particular market and select a quality product and quote the prices in u. The price includes all expenses till the port of destination. • Once the price is acceptable to the buyer. • The letter of credit should be always in the form of irrevocable and sight letter of credit. packing specifications mentioned in the lC and send the same to the port of Dayananda Sagar College of Science. Arts And Commerce Page 14 . PROCEDURE FOR BECOMING AN EXPORTER • To apply for an import export code with the concerned office of the joint director general of foreign trade with all the particulars and necessary fees in this regard. The prices may be quoted as under:• F. • Once the lC is opened the seller has to prepare the cargo as per the quality. • C I F : it means cost. insurance will be to the account of the buyer. The buyer has to bear only the insurance and other delivery charges etc at the port of destination. dollars which is an universally accepted currency for all import – export trade. insurance and freight.O.

no buyer will open l/c. • In addition to l/C and advance remittance. Arts And Commerce Page 15 . seller has to prepare his commercial invoice. • Once the shipment is over C&F agent will prepare all the shipping documents called for in the lC.C. Exporter will ship the material and send the original documents to the buyer and the buyer in some cases may send some part payment as advance and the final account will be settled only against the sale of exported cargo. the payments can be in the form of D.C.P terms on a pre agreed price. loading so that the C&F (clearing and forwarding) agent will do the rest of forwarding the consignment to the buyer. bills of exchange and submit all the documents along with the original lC received from the buyer to the bank for negotiation. ( EXPORT CREDIT GUARANTEE CORPN OF INDIA LTD). • In case of perishable commodities. In order to offset the exporter against unforeseen Dayananda Sagar College of Science. • The banker will thoroughly scrutinize the documents strictly as per the terms and conditions of the lC and give credit to the sellers account and send the documents to buyers’ bankers for getting the payment. packing list. Buyer’s bank will collect the money from the buyer and release the documents to him and send proceeds to Indian exporter through the banking channels.G. • THE ROLE OF E. send advance remittance or even agree for D.EXPORT ANALYSIS KAPPEC LTD.P (documents against payment) at sight which means exporter will ship the material and send all the original shipping documents through his bank to the buyer’s bank. • Once these original shipping documents are received. It is all done on consignment sale basis. Normally the payment is received within 10-15 days time.

3% to 0. INDIA’S REFORM AS IT ADAPTS TO GLOBAL TRADE COMPETITION The export laws of India are governed by the foreign trade policy. Services continue to be the largest contributor to GDP (over54% in 2005/06). non receipt of payment due to wars.EXPORT ANALYSIS KAPPEC LTD.8% of the value). as well as significant structural and trade reform have clearly paid off. India Trade: Critical Ports Ports that are critical to India’s trade are: Dayananda Sagar College of Science. India's real Gross Domestic Product (GDP) has grown at an average annual rate of approximately 6% and. All exporters/importers trading from India have to adhere to the foreign exim policies in order to gain benefits on the trade front. and agriculture’s share has decline to around 18. These good economic results are due to important unilateral reforms aimed at opening up Indian economy and trade .3% of GDP in 2006. riots etc and charge a nominal premium for this based on the country classification ( eg. This will help an exporter to expose his risks only to that extent. circumstances in exports. India’s liberalizing policy. Since the liberalization process began in 1991. despite the recent increase in international petroleum prices. since Indian economic performances are distinctly impressive these days. ECGC plays an important role. while the share of manufacturing has remained respectively stable. GDP growth for 2006/07 was 9%. Arts And Commerce Page 16 . 0. ECGC also helps an exporter in assessing the credit worthiness of the importer and will fix the credit limit accordingly. ECGC covers various types of risks such as default by importer or the country. at around 16% of GDP.

Arts And Commerce Page 17 . Areas of concern such as anti dumping measures. To give a view full of the export affairs of the undertaking it is necessary to include a annual report. Such review of literature connected with the working and performance of Karnataka State Agriculture Produce Processing and Export Corporation Limited (KAPPEC) in Karnataka. It was hoped would provide a basis either for confirming the earlier findings for contradicting them and there by suggest points of departure for further studies. tariff peaks and targeted subsidies may also be analyzed in detail Exports analysis can be performed by businesses or Dayananda Sagar College of Science.2 THEORITICAL LITERATURE With a view to evaluate the objectives of the study. An export report or exports analysis is an in-depth evaluation of a country’s export statistics so that its economic planners or policymakers can devise policy changes. a statement of changes in the export of the different products exported by KAPPEC LTD.EXPORT ANALYSIS KAPPEC LTD. It was considered desirable to have idea of the findings of some of the earlier research studies and the method adopted therein. • • • • • • Alang (Gujrat) Beypore (Kerala) 0Kalicut (Kerala) Goa Mumbai Chennai and Ennore (Chennai) 1. These policy changes are required to speed up a country’s economic growth.

This difference in data source also affects export-led growth Dayananda Sagar College of Science. Countries frame their new policies and programs based on the results of the longterm and short-term export reports. depending on the export data source used. These statistics are a result of comprehensive study of exports.EXPORT ANALYSIS KAPPEC LTD. since the removal of the quota regime in 1994. researchers have begun to advocate the use of formative indicators as a basis for export performance analysis. which is conducted by using both objective and subjective measures. such as the International Monetary Fund and the UN Commodity Trade Statistics. A textile exports analysis of China reveals that the country continues to make its mark in the world textile market. However. The objective is to increase trade and profits. Countries can utilize export reports to perk up their trade policies and programs. when Australia released a review of its export policies and programs. When the facts and figures from the two sources are dissimilar. Export data may be obtained from two different sources. Formative indicators refer to exploring the causal indicators. Arts And Commerce Page 18 . the fact remains that export review results may vary. However. Analysis of Exports Statistics Today. it outlined around 70 recommendations as part of its export promotion and trade and investment policy. countries to enhance their growth prospects. rather than the effect indicators. A detailed export review can help devise future-oriented export growth plans. it may yield incongruent results. most exports analyses are conducted using reflective indicators. In 2008.

Hence. is taken as the base year. which is usually the first year. mean. are a unary numeral system. They allow updating written intermediate results without erasing or discarding anything written down.EXPORT ANALYSIS KAPPEC LTD. and the links that connect some pairs of vertices are called edges. Dayananda Sagar College of Science. Arts And Commerce Page 19 . net income etc. Graphs are one of the objects of study indiscrete mathematics. Typically. researchers agree on the point that data can be neither interchanged nor correlated. Each item of the base year is taken as 100 and on that base. joined by lines or curves for the edges. TREND ANALYSIS : Trend analysis involves the usage of past figures for comparison. Under this kind of analysis. the percentage for other years are computed. Trend percentages are calculated for some important items like sales revenue. models. Techniques used in export analysis The data received are tabulated and analyzes for logical statement using statistical . etc. They are a form of numeral used for counting. Overall. because of the length of large numbers. export reports benefit countries and their efforts to formulate their overall export-oriented development strategy. GRAPH : Graph is an abstract representation of a set of objects where some pairs of the objects are connected by links. Tally : Tally marks. a graph is depicted in diagrammatic form as a set of dots for the vertices. information for a number of years is taken up and one year. This analysis will help in finding out the percentage of increase or decrease in each item with respect to the base year. The interconnected objects are represented by mathematical abstractions called vertices. trend. Methods like tally. However. or hash marks. tallies are not commonly used for static text.

Mukherjee also emphasized that enhancing the nutritive value of agriculture Dayananda Sagar College of Science. The rural economy employs about 60% of Indian work force. received an extra Rs. For instance. over last year.EXPORT ANALYSIS KAPPEC LTD. an initiative to help farmers bring their produce to the market.4% growth over last year. according to advanced estimates by the annual Economic Survey. This. milk. and is expected to post 5. The focus of most of his initiatives seem to be in strengthening existing programmes rather than creating new avenues of budgetary support. Finance Minister Mr. Arts And Commerce Page 20 . or about 16%.000 crore.744 crore for agriculture and allied sectors . 4. vegetables. in latest budget proposal (2011). meat. an increase of 2. Mukherjee has hiked interest rate subvention a scheme in which banks provide short-term crop loans to farmers at 7% interest by one percentage point . 1. 1. Pranab Mukherjee said removing production and distribution bottlenecks for fruits.75 trillion.6% over last year. poultry and fish the key drivers of food inflation would occupy his attention. contributing about 17% of gross domestic product. would also push banks to disburse Rs. a nearly 25% jump from last year. he said. has allocated Rs14. the Rashtriya Krishi Vikas Yojana.3 CURRENT ISSUES The government of India.

Its primary focus. To be sure. jowar.S. Among the few new initiative again with a focus on improving the nutritive quality of food was a National Mission for Protein Supplements to be launched later this year. including fruits and vegetable are major victim of a slew of govt regulations on movement and pricing that has created layers of middlemen over the years. Dayananda Sagar College of Science. Agricultural commodities . While we ensure food for all.4. some analysts said the plans for agriculture were insipid and left out key issues. agriculture scientist and a Rajya Sabha member.1 Prices of Vegetable Products Rising Despite Higher Production Supply demand equation seemingly do not influence Indian markets dominated by layers of middlemen and scary government policy. would be to promote animalbased protein production through livestock development.EXPORT ANALYSIS KAPPEC LTD. he said in his budget speech. Bajra. goat rearing and fisheries in selected agricultural blocks. There is no particular vision and no strategy to make agriculture an attractive option for youngsters 1. dairy farming. said M. produce was as important as increasing farm production. we also must promote balanced nutrition. the finance minister said. The minister provided Rs300 crore to encourage farmers to intensify production of these crops. Arts And Commerce Page 21 . It's a disappointing budget in relation to what the Economic Survey has projected in the agricultural sector. Swaminathan. ragi and other millets are highly nutritious and known to possess several medicinal properties. such as employment.

74 million hectares (mh) to 1. Arts And Commerce Page 22 . onion. tomato. there has been a 315 per cent jump in the index. while it is 7.98 per cent. Since April 2006.27 per cent. potato and tomato totally cost Rs 26. Even after taking note of population growth .15 per cent in yield. for which data are available. Production of vegetables have risen considerably over last 5 years. Between 2006 and 2010.59 million tonnes (mt) to a record 40. Though prices have gone up.43 tonnes a Dayananda Sagar College of Science. the CAGR of potato is 7.73 per cent in acreage. cabbage and brinjal (the top five) have actually gone up since the season starting July 2006. vegetables have seen a compounded annual growth rate (CAGR) of 1. During April' 2010 a kg each of brinjal.07 per cent. a look at the Agriculture Ministry data show that the acreage.93 per cent in production and 2. while onion's is next at 3. if you buy the same.36. production and yield of key vegetables such as potato.89 mh. The CAGR of potato yield is also higher than other vegetables at 5.EXPORT ANALYSIS KAPPEC LTD.38 if you bought at the Azadpur mandi in Delhi.18 per cent for cabbage. that will cost you Rs 69.its impossible to explain huge increase in vegetable prices over last few months. onion.23 mt with yield rising from 16. vegetables index has increased to 273 from 143. while production was up from 28.9 in April. In the Wholesale Price Index that is used as a measure of inflation. In fact. Among these. Today. coverage of potato increased from 1. cabbage. 3.

For example.66 a kg from Rs 10. potato has seen the minimum surge. they have increased. the population has increased 70 million to 1.12 tonnes a hectare (17.EXPORT ANALYSIS KAPPEC LTD. the MSP of wheat has been raised from Rs 850 a quintal in 2006-07 to Rs 1. In fact.76 mt. during May last. prices dropped sharply to below Rs 300 a quintal on increased arrivals before the West Bengal Government intervened to procure nearly one million tonnesto save farmers. 2010 at the Azadpur mandi. Currently.84 mt) and 14.57 per cent. prices dropped while for tomato. In 2006-07.05 mt (10. while production and yield have increased to 13. In the case of onion. while the per capita income from 2005-06 to the last Dayananda Sagar College of Science.16).52 to rise to Rs 7. it is quoted at Rs 425.100 this year. Onion prices during the current season (July 2010-June 2011) are averaging at Rs 27.40 the next year and to Rs 8.88 in 2008-09. Prices during the same time increased from Rs 500 a quintal in July 2006 to Rs 842 on June 30. hectare to 21. Arts And Commerce Page 23 . Besides. Between 2006 and 2010. prices of all these are much higher.24 tonnes.15 billion at a CAGR of 1. prices for foodgrains have increased sharply in the last couple of years with the Centre raising the minimum support price (MSP) for most crops. Currently. it averaged Rs 6. the area has remained stagnant at 0. Data are available only until June 2009 for other vegetables and in the case of brinjal and cabbage. Among all the vegetables.25 during 2009-10.

Arts And Commerce Page 24 .76 crore).4.56 crore over Rs 4222. The rally in unit value realisation of these two pillars of spices exports ensured that spices exports crossed the billion-dollar mark. Mint and mint product exports as well as spice oils and oleoresins continued to contribute significantly to the spices export basket in value. the 29-per-cent growth in unit value realisation from Rs 614 to Rs 896 this year ensured that the total value realisation spurted up. Dayananda Sagar College of Science. A notable achievement of the period was that spices exports topped the billiondollar mark in the first nine months of this fiscal. Although mint and mint products were down by 12 per cent in volume during April-December 2010. the marginal 1-per-cent spurt in volumes was accompanied by a 17 per cent growth in unit value realisation taking the total value realisation to Rs 641.2 Exports Rise During First Half of Current Fiscal Year Indian spice exporters have recorded an impressive 16 percent growth in export of all varieties of spices in value terms during April to Dec 2010. In volume terms the growth is marginal at 3 percent. The increase in the total value realisation was mainly driven by a spurt in the price of spices in the global markets. 1.880.540. Spice oils and oleoresins as well as mint and mint products together accounted for close to 50 per cent of the total value realisation from spices exports.55 per cent.594 to Rs 33. Value of total spices exports have gone up to Rs 4.EXPORT ANALYSIS KAPPEC LTD.56 crore achieved during same period last year. fiscal increased Rs 7. For spice oils and oleoresins. a CAGR of 5.39 crore (Rs 546.

While pepper exports stagnated in value in the global markets for several years. During April-December 2010 exports of chilly.79 lakh tonnes (1. leading to fall in spot turmeric prices below Rs 16.Severe Cold Pushing Down Turmeric Demand Severe cold in North India is keeping traders inactive. Others like mustard. Chilly exports increased by 22 per cent in volume to 1. On January 10 2011. even as the total value realisation grew by 17 per cent to Rs 1.EXPORT ANALYSIS KAPPEC LTD. ginger. But spices like tamarind and asafoetida could register growth only in value.000 a quintal. 96 per cent of the targeted value and 95 per cent of the foreign exchange target. The spices board has set an export target of 4.71 a kg last year to Rs 190. firm price trends were evident during the last couple of months.125 million. about one hundred bags of fresh Mysore variety turmeric arrived in Erode market for sale. 1. ajwanseed. fennel and garlic showed an increase in volume as well as value. Arts And Commerce Page 25 .47 lakh tonnes). By December 2010 the country achieved 84 per cent of the targeted volume. aniseed.4.108. it failed to fetch price beyond Rs Dayananda Sagar College of Science. The unit value of pepper exports have increased from Rs 157.3 Turmeric Prices Decline . Chilly is another prominent export item in both volume and value.49 crore).65 lakh tonnes. nutmeg and mace showed a decline in both volume and value during the period. The foreign exchange target is pegged at $1. However. valued at Rs 5.18 a kg this year.100 crore for this fiscal.92 crore (Rs 946.

585 were sold.831. At the Gobichettipalayam Agricultural Cooperative Marketing Society.639-16. Dayananda Sagar College of Science.299-15. the root variety Rs 14. the turmeric finger variety fetched Rs 9.650-16. the root variety Rs 15.000-16.827-15. the finger variety sold at Rs 14. At the Erode Turmeric Merchants Association sales yard. 400 were sold. 143 were sold.EXPORT ANALYSIS KAPPEC LTD.069. At the Regulated Marketing Committee.997 a quintal. Of 173 bags that arrived. At the Erode Cooperative Marketing Society. the finger variety sold at Rs 15. Out of 1073 bags that arrived in the market.737-15. 415 were sold.293-15.200 a quintal. The root variety Rs 15.949.489-15.010.939 a quintal and the root variety Rs 9. Farmers have sold most of their stocks. 14.050. Of 504 bags kept for sale. expecting further decrease in price for the fresh crop that will arrive in the market in the middle of February. Of 634 bags that arrived. the finger variety sold at Rs 15. much lower than farmer's expectation. as the cultivated area is almost double this year. Arts And Commerce Page 26 . Traders are also buying limited stocks.809.

• To evaluate the market position of the organization.2 OBJECTIVES OF THE STUDY • To evaluate the export competitiveness of the organization. 2. Arts And Commerce Page 27 .1 STATEMENT OF THE PROBLEM This topic is selected to analyze the export analysis of the company which has shown a growth steady pace of increased profit and turnover in recent year. INTRODUCTION TO THE STUDY TITLE OF THE STUDY “A STUDY ON EXPORT ANALYSIS OF DIFFERENT PRODUCTS TOWARDS PROCESSING AND EXPORT INDUSTRY WITH SPECIAL REFFERENCE TO KARNATAKA STATE AGRICULTURAL PRODUCE PROCESSING AND EXPORT CORPORATION LIMITED” 2. Dayananda Sagar College of Science. The study is to be conducted to evaluate the different products toward export industry and analyze the different products in order to give a better scope to the management themselves about the rating of the company and its performance in the export industry. • To help in the market research.EXPORT ANALYSIS KAPPEC LTD.

2.EXPORT ANALYSIS KAPPEC LTD. • To know the reason for the variation in the export of different products. 2. • In the context of globalization management of agricultural export assumes importance. activity and position of the company will be reflect through export analysis.3 SCOPE OF STUDY • Agriculture is the main occupation in most of the developing countries. Arts And Commerce Page 28 . • Export increases the income of the country. • To understand the movement of export over a period of time. The ultimate performance indicator of the company is the financial parameters because invariably all cost efficiencies. The followings are stated as the need for the study: • To understand the volume of export and its reasonableness. • To show the company market strength. • To know the present standing of the company.4 NEED OF THE STUDY Any company would like to know its position against its competitor. • India’s share in world export was less than one percent. Dayananda Sagar College of Science.

Inferences based on imagination or guesswork cannot provide correct answers to research questions. Without an analysis of factual data no specific inferences can be drawn on the questions under study. • Collection of company’s specific literature i. from 2006 to 2010 Dayananda Sagar College of Science.e.e.EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 29 . adequacy and reliability of data determine the quality of a study. For the purpose of this present study data from two sources collected namely primary and secondary data have to be gathered.1 RESEARCH DESIGN Research is a “fact finding investigation with adequate interpretation”. The data serves as the bases for analysis. • Scanning through standard book to understand the theory behind the export analysis. • Collection of information from various journals to understands the industrial background of the study. annual report for the study period and profile of the company. RESEARCH METHODOLOGY 3. The relevance. Research designs used in the specific study includes the followings: • Identification the statement of problem. • Study period in this case is 4 years i.

The primary data used for this study consists of informal discussion. Arts And Commerce Page 30 . 3. My source of information is the data available with the company by ongoing through the annual reports.EXPORT ANALYSIS KAPPEC LTD. This is related to collect the required information about the study. Data can be distinguished as: (a) Primary Data (b) Secondary Data Primary Data Primary data that will be used in the project is the direct interview made with the finance manager of KAPPEC LTD.3 LIMITATIONS OF STUDY This study like any other research inherits certain limitations. 3. Much information will be collected from companies website where the financial report is published and some information from newspaper and magazines. The study basically relies on secondary data supplied by the company. interview with the finance manager of the company. Some of them are: Dayananda Sagar College of Science. It depends upon the nature of the study. Secondary Data Secondary data will be collected from the financial reports issued by the company.2 SOURCES OF DATA Data refers to the facts. figures and other relevant materials. past & present. serving as basis for they study & analysis. The sources of data are varied.

mean. Methods like tally . 3. introduction to the topic itself and an overview of the industry in general. 3. proper analysis is hard to do. • As the recovery from recession is at its peak. statement of the problem.5 CHAPTER SCHEME GENERAL INTRODUCTION The chapter gives an overview of the export industry. INTRODUCTION TO STUDY This chapter gives a plan of the study which includes title of the study. Most of analyzed data are converted to percentage to facilitate easily interpretation of data and the same is analyzed and interpreted in the form of table and represented in the form of graph. RESEARCH METHODOLOGY Dayananda Sagar College of Science.EXPORT ANALYSIS KAPPEC LTD.trend analysis. • The time period was very less. objective of the study. average etc. need for the study. • The study is limited to Bangalore City only . Arts And Commerce Page 31 .4 PLAN OF ANALYSIS The data received are tabulated and analyzes for logical statement using statistical. This chapter includes an introduction to the broad area of the topic chosen. scope of the study. specific area of topic chosen. review of literature and expected contribution of the study. • Getting accurate information regarding the export status is very difficult.

Dayananda Sagar College of Science. and limitation of the study of analysis and chapter scheme.EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 32 . source of data collection. This chapter provides design of the study which includes research design. DATA ANALYSIS AND INTERPRETATION This chapter provides an analysis of the data with interpretation along with graphs showing changes in export products. PROFILE OF COMPANY This chapter provides detailed information about the company and its products. ANNEXURE It consists of data which are collected. BIBILOGRAPHY It consists of various books and journals referred for the study. FINDINGS This chapter provides general finding of the study. RECOMMENDATION AND CONCLUSIONS This chapter offers recommendations based on the finding and overall conclusions of the study.

EXPORT ANALYSIS KAPPEC LTD. MiddleEast. Chillies. Since inception till 31-122010. Dayananda Sagar College of Science. government has established Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) on 22nd April 1996. Garlic. KAPPEC has also exported Mangoes. Singapore. processing and export of agriculture. horticulture and floriculture products. Arts And Commerce Page 33 . The main obstacles and hindrances for development of horticulture are as under:• Low productivity per unit area. Red split lentils. COMPANY PROFILE ORIGIN OF THE COMPANY As per the recommendations of the Agriculture Policy of the state to develop and promote the production. Coriander. Turkey. horticultural and floricultural products. KAPPEC has handled about 532543 metric tonnes of agricultural and horticultural commodities valued at Rs 91580 lakhs. Mexico. Onions. Srilanka. Coconuts. Netherlands.The main aim of the KAPPEC is to develop and promote the export of agricultural. Watermelon. Niger seeds. In addition to grapes. • Subdivision and fragmented land holdings because of which mechanised cultivation is not possible.. Australia.K. Brazil etc. Menthe seeds. Drumstick. and Turmeric to USA. Malaysia. Potato. U. Pomegranates.

Coriander. • Exported Mangoes. Srilanka. horticulture and floriculture products.EXPORT ANALYSIS KAPPEC LTD. Red split lentils. • Inadequate post-harvest infrastructure facilities like procurement centres. precooling and cold storages. Niger seeds. Watermelon. Turkey. packing units. Government has established Karnataka State Agricultural Produce Processing and Export Corporation Limited (KAPPEC) on 22nd April 1996. refrigerated transport. intermediate cold storages. waxing. U. Mexico. To overcome these problems in the interest of the farmers and as per the recommendations of the agricultural policy of the state and to develop and promote the production. Egypt. Grapes. Potato. Europe etc. processing units and export house. Processing and export of variety of agriculture and horticulture commodities. Maldives. • These products are seasonal in nature and the season is so short that the entire produce enters the market at a time which makes the market to collapse and the farmers are not getting remunerative prices. Coconuts.A. Saudi Arabia. Kuwait. grading. Mauritius. Chillies. Dayananda Sagar College of Science. washing.S. Pomegranates. Middle East. Garlic. Onion. Sugar and other fruits and vegetables to Singapore. Arts And Commerce Page 34 . ACTIVITIES • Procurement. processing and export of agriculture. Drumsticks.

KAPPEC in consultation with the scientists of IIHR. • Procurement of good quality Agri found variety of Bangalore Rose Onion and Agri Found Light red onion seeds from The National Horticultural Research & Development Foundation and distribution to farmers of the State. Dayananda Sagar College of Science. • Active involvement in the activities of the WTO cell established by Govt. and study tours in the growing areas of grapes. Bangalore and the senior officials of Department of Horticulture had organized seminars.EXPORT ANALYSIS KAPPEC LTD. • Published a booklet titled package of practices for growing export quality Bangalore Rose Onion with the assistance from scientists at IIHR and distributed to farmers. and Pomegranates etc for the benefit of farmers. • Published a booklet titled package of practices for growing export quality grapes with the assistance from the senior scientists at IIHR and distributed to grape growers/ Growers’ Association in Bijapur. Bangalore for ‘Development of high yielding Lustrous and Bold seeded varieties with high oil content in Niger seeds’. • Creation of awareness among the farmers about growing export quality produce. Arts And Commerce Page 35 . UAS. • Signed MOU with University of Agricultural Sciences. of Karnataka. workshops. Bangalore Rose Onion. • Assisting and guiding the budding entrepreneurs for undertaking exports of agriculture and horticulture commodities from Karnataka. Mango.

quality control labs & refrigerated transport etc. • Acting as the nodal agency for the implementation of Agri Export Zone for Gherkins and Bangalore Rose Onion in Karnataka. of India for the export of all varieties of onions from India. • Involved in the creation of post harvest infrastructure facilities in various parts of State in a phased manner to facilitate the export of agriculture and horticulture exports. in potential areas in a phased manner. • Plans to create post-harvest infrastructure facilities like pack house. processing unit.EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 36 .. cold storage. • Encouraging joint ventures under Public Private Partnerships (PPP model) for the processing and value addition to agriculture and horticulture produce for the benefit of farmers. precooling unit. • Acting as one of the State Trading Enterprises (canalizing Agency) appointed by the Govt. Already Dayananda Sagar College of Science. • Participating in domestic and international exhibitions to showcase the potential of agriculture and horticulture commodities of Karnataka to increase exports. FUTURE PLANS AND PROGRAMMES OF KAPPEC • Plans to enhance the trading both in domestic as well as overseas markets for the benefit of farmers to help them to realise a fair return for their produce of kappec.

EXPORT ANALYSIS KAPPEC LTD. • To make available quality Bangalore rose onion seeds at reasonable prices to farmers in order to raise production. Dayananda Sagar College of Science. training programmes for the benefit of farmers in order to create awareness among them about the package of practices to be followed in the area of pre and post harvest management.10 crores to KAPPEC for creating post harvest infrastructure facilities like pack house.300 lakhs has been implemented at Bijapur. quality control labs & refrigerated transport etc. • Plans to enter into joint venture participation with private sector for the development and increase of agriculture and horticulture exports from the state. pre-cooling unit. symposiums. one such project with a financial implication of about Rs. cold storage. productivity and quality of this variety of onion. Arts And Commerce Page 37 . processing unit. in potential areas in a phased manner. • To conduct seminars.AHD:88:HPP:2006 Dated 23rd January 2007 has released Rs. KAPPEC has already procured certified quality Bangalore rose onion seeds from the national horticultural research development foundation. • To participate in the international & domestic fairs and exhibitions to increase the demand for agriculture and horticulture commodities grown in Karnataka Government vide order • NO. Nashik and has distributed to farmers..

Arts And Commerce Page 38 . The details are as under:• Creation of an integrated cold chain complex consisting of receiving centre.EXPORT ANALYSIS KAPPEC LTD. pre cooling units.lakhs) has been sent to Government for approval. pack house. An IQF unit mooted by M/S.78/.05 Lakhs has already been prepared and sent to APEDA and NHM for funding under their respective financial assistance schemes. Dayananda Sagar College of Science. pomegranates and other horticulture produce from Kushtagi and surrounding areas in Koppal district. The project report with a total financial implication of Rs. Tropicool Foods Pvt Ltd in Hubli with the equity participation under Public Private Partnership (PPP) model from a leading horticulture produce exporter. waxing. grading line.10 Crores to the company for creating necessary post harvest infrastructure facilities in different parts of the state based on potential in a phased manner. The proposal of KAPPEC for taking part in the equity to an extent of 26% (Rs. The company has already received and initiated action in this connection. ACTION PLAN FOR CREATING INFRASTRUCTURE FACILITY Government of Karnataka in the budget 2006-07 has sanctioned an amount of Rs. The project proposal with a financial implication of Rs. 833.based in Hubli for the value addition to the horticulture produce grown by farmers of the area.1058 Lakhs has already been prepared and sent to ASIDE and NHM for funding under their various schemes. washing. Land has already been purchased from KIADB. cold storages and also a laboratory for the export of grapes.

variety of fruits and vegetables etc to countries like Mauritius. ACTION PLAN FOR MARKETING As explained above. potatoes. Arts And Commerce Page 39 . turmeric powder. 8000 2000 100 100 50 10 PLAN FOR COLD CHAIN EXPANSION The Karnataka State Agricultural Produce Processing & Export Corporation Limited (Kappec) is setting up three cold storage units in Hubli. of Commodities like Onions. the company is engaged mainly in the back to back trading of commodities by insulating the risk of market fluctuations and incurring losses in trading due to volatile market conditions exist in commodity trading.1324 Lakhs by trading in 9772 Mts.EXPORT ANALYSIS KAPPEC LTD. The corporation has been sanctioned a financial assistance for its Hubli and Bagalkot plants under the Assistance to States for Developing Export Infrastructure and Allied Activities (ASIDE) scheme of the Union ministry of Dayananda Sagar College of Science. Maldives. Based on this experience and also to add more and more commodities to the existing list we propose to undertake the trading as under:Commodity Onions Potatoes Turmeric Powder Chillies Dried Grapes Fruits & Vegetables Qty in Mts. During the year 2006-2007 the company has achieved a turnover of Rs. Bidar and Bagalkot for an investment of Rs 31 crore.

600. among others at Amargol in Hubli. commercial cold rooms of 2. cashew.371 crore in 2008-2009. Karnataka produces 13. while the balance 20 per cent will be invested from our own funds for the Hubli and Bagalkot facilities. precooling units.73 million tonnes.” Devendrappa said. Kappec told Business Standard.EXPORT ANALYSIS KAPPEC LTD. a top official of Kappec said. Dayananda Sagar College of Science. fruit production accounts for 4. The Bidar facility will be set up with assistance from the Agricultural & Processed Food Products Export Development Authority (APEDA). commerce. silk products and flowers. 469.500 tonnes for pomegranate packaging units would be set up at Bagalkot. gherkin. which includes coffee. Of this. which accounts for 7 per cent of the country’s production. vegetables account for 7 million tonnes. Arts And Commerce Page 40 .02 million tonnes of horticulture produce. “We have been sanctioned 80 per cent of the funds under the ASIDE scheme. Bangalore rose onion. A similar infrastructure with a capacity for 1. “There is an estimated loss of 30-40 per cent of fruits and vegetables due to the non-availability of proper storage facility at the farm level before taking it to the market. The construction will be taken up by Kappec and the management will be given to the private companies. managing director.000 tonnes and reefer vans apart from ripening chambers.” K J Devendrappa.000 tonnes of spices. Karnataka exported agriculture and horticulture products worth Rs 4. agriculture and processed food.000 tonnes of plantation crops. he said. spices. Kappec is planning to construct a pack house with grading cooling line.

5 crore from Kappec. The facility will be set up at an investment of Rs 6. Arts And Commerce Page 41 .000 persons at the farm level.5 crore from APEDA and Rs 1. The project could increase exports of grapes and pomegranates by about 500 tonnes. pre-cooling units. cabbage. onion and cauliflower.941 tonne of fruits and produces 121. It would create employment to about 100 persons at the factory and more than 1. With the assistance from APEDA. Devendrappa said. In order to increase exports and to reduce the post-harvest losses of fruits and vegetables in the state Kappec has been improving the cold chain infrastructure like integrated cold storages in Karnataka with the assistance from Central and state governments. washing. Kappec is also setting up an integrated cold storage at Humnabad of Bidar district for increasing exports of fruits from Bidar district. It will also help in bringing contract farming for backward linkages. The facility includes components like pack house.EXPORT ANALYSIS KAPPEC LTD.028 tonnes of vegetables like tomato. grading and waxing line. Bidar produces 36. ACTION PLAN FOR PROMOTIONAL ACTIVITIES The company proposes to undertake the following promotional activities for the development of trading (both domestic as well as exports) of agriculture and horticulture commodities :- Dayananda Sagar College of Science. commercial cold storage and reefer van. export cold rooms.

Indian Gherkin Exporters’ Association and APEDA in the Research & Development Project on Standardization of Production Technology for Export Quality Gherkins. • Procurement and supply of good quality bangalore rose onion seeds to farmers engaged in the cultivation of bangalore rose onion in the districts of Kolar. Department of Horticulture. • Providing guidance and information to budding entrepreneurs to undertake exports of agriculture and horticulture commodities from the State. Workshops in growing areas by involving scientists from UAS.EXPORT ANALYSIS KAPPEC LTD. Arabhavi in Gokak Taluk. • Association with University of Agriculture Sciences. • Equity Participation in the Karnataka Grape Wine Board. • Conducting commodity and crop specific Seminars. • Cultivation of White and Yellow Onion in Belgaum district in association with a leading onion exporter and the College of Horticulture. • Visit to various institutions belonging to Agriculture Marketing Board. Bangalore. IIHR and other Departmental officials for the benefit of farmers. • Implementation and coordination in respect of the agri export zones for Bangalore Rose Onion and Gherkins in the State. a newly established society by the Govt. IIHR. Arts And Commerce Page 42 . Bangalore Rural and Bangalore Urban. of Karnataka for the promotion of wine industry in the State. University of Agriculture Sciences. Bangalore and Dharwad for delivering talks on the role and strategy of Dayananda Sagar College of Science.

Government agencies. Participating in international exhibitions to promote the export of Karnataka products. • Supply of good quality inputs. Government of Karnataka in the budget for the year 2006-2007 has sanctioned and released an amount of Rs. Dayananda Sagar College of Science. research agencies etc. market information like demand and supply position for export of potential commodities. productivity and production as per international standards. KAPPEC. • Conducting seminars or symposium in the growing areas to create awareness among the farming community about the need to grow export quality produce steps to be taken on pre and post harvest techniques and publication of literatures in this regard. Accordingly. • Conducting periodical meetings with the exporters in order to address their greivances. • Encouraging research activities on the export potential crops to enhance the quality. growers. customs authorities.EXPORT ANALYSIS KAPPEC LTD.10 crores (Rupees Ten Crores Only) to KAPPEC for creating post-harvest infrastructure facilities in a phased manner in different parts of the State based on the potential. the company has envisaged the following infrastructure facility in the State in a phased manner:- FUNCTIONS OF KAPPEC • Encouraging budding entrepreneurs to take up exports by guiding them the procedures. Also interaction with all the concerned stakeholders like exporters processors. Arts And Commerce Page 43 . to understand their difficulties and try to address them in the best interest of the industry and growers in particular and State as a whole.. bankers. Potential exists for the development of export of agriculture and horticulture commodities. formalities.

EXPORT ANALYSIS KAPPEC LTD. • To supply agricultural inputs or technology required by farming community. • To undertake market research about the export quality products and disseminate the information to both the exporters and growers. processing and storage of these commodities and to implement the same in the state. horticulture and floriculture products. flowers etc. • Getting the Agri Export Zone (AEZ) sanctioned for the export potential crops in order to give special emphasis to boost the export of such crops. production. meetings involving farmers. Arts And Commerce Page 44 . OBJECTIVES OF KAPPEC • To develop and promote the production. scientists. bankers and other relatedparties to create awareness among them and also to educate them about the potentiality of agri exports. processing and export of agriculture. • To identify the modern technology for increasing the productivity. Example Bangalore rose onion Gherkins. • To conduct seminars. • Encouraging joint venture equity participation for the development of infrastructure for exports. • To create post-harvest infrastructure facilities for the development and export of agricultural products (including horticulture and floriculture) and also to promote the private participation in this sector. • To establish processing units by KAPPEC or with joint venture participation with private entrepreneurs. ACHIEVEMENTS Dayananda Sagar College of Science.

• KAPPEC provided all the necessary facilities and support for the activities of WTO Cell established by the Govt. • KAPPEC has been designated as the “One Star export House” of the Govt. Dayananda Sagar College of Science.of India for export performance in agriculture or horticulture commodities. Govt. • KAPPEC has been awarded with the “Silver Trophy” and a “Citation” for the best performing AEZ in the country by Govt. This report became a guide to Government of India for further discussions andnegotiations with WTO in various forums.of India and “Silver Trophy” and a “Citation” for the overall export performance during the years 1996-2000 from Government Karnataka. This report of the WTO cell was circulated to all the Honorable Members of both houses of Parliament. Arts And Commerce Page 45 . • KAPPEC has signed an MOU with the University of Agricultural Sciences. Karnataka was the first State in the country to establish an exclusive cell on WTO and prepared a report on Impact of WTO Regime. This cell has studied the impact of WTO regime on Karnataka’s agriculture and horticulture and submitted its report to the Honorable Chief Minister of Karnataka. • KAPPEC has been appointed as one of the canalizing agency for export of all varieties of Onions from the country. Bangalore for development of high yielding lustrous and bold seeded varieties with high oil content in Niger seed. • KAPPEC is the nodal agency for the implementation of AEZ’s in Karnataka.EXPORT ANALYSIS KAPPEC LTD.of India and Honorable Members of the State Legislative Assembly and Council. The financial implication of this research project is Rupees seven lakhs.of Karnataka.

• In order to encourage the floriculture industry. Arts And Commerce Page 46 . KAPPEC has sanctioned funds for this project from its own resources. Bijapur for modernizing their existing pre-cooling and cold storage facility and also to create additional precooling unit to facilitate exports.90 lakhs to the Bijapur District Grape Growers Processing and Marketing Co-operation Society Ltd. promoted by Karnataka Agro Industries Corporation Ltd. • KAPPEC is purchasing good quality variety of Bangalore Rose Onion seeds from the National Horticultural Research and Development Foundation. Nasik and distributing to farmers of the state directly and also through the Department of Horticulture. KAPPEC has advanced an interest free refundable soft loan of Rs 11. • KAPPEC is helping budding export entrepreneurs by providing them proper guidelines and advice in order to increase exports of agriculture and horticulture commodities from the state. KAPPEC has participated in the equity in International Flower Auction center Bangalore Ltd. Bangalore. NAME OF THE PROJECTS UNDERTAKEN Dayananda Sagar College of Science. • In order to give a boost for horticulture exports from Bijapur and surrounding areas.EXPORT ANALYSIS KAPPEC LTD.. Sharada seedless Grapes and Pomegranates to Europe and Russia from Bijapur and paved the way for boosting export of agriculture and horticulture commodities from the area.. • KAPPEC has successfully exported Thompson seedless Grapes.

EXPORT ANALYSIS
KAPPEC LTD.

• Creation of post harvest infrastructure facility consisting of two pack houses, two precooling units, five cold storages, one washing, waxing and grading unit, two refrigerated vans, one battery operated forklift, two hydraulic hand pallet trucks, a laboratory, office complex, packing and grading tables 40 numbers- For the export of Pomegranates and other horticulture produce from Kushtagi and surrounding areas in Koppal • • Creation of post harvest technologies at Chitradurga consisting of a receiving hall, pack house, pre cooling, Cold storage, washing and waxing unit and related equipments for the export of pomegranates, Figs, Papaya and other horticulture produce from Chitradurga and surrounding areas. • Establishing a State of the art TUR processing unit at Gulbarga for the benefits of TUR farmers of Gulbarga, Bidar Districts and surrounding areas. • Establishing an IQF unit at Hubli in North Karnataka for the export of Quick frozen foods under PPP model. • Establishing six numbers Vanilla Processing units in difference vanilla growing areas of the State along with all required equipments and buildings for processing and drying of vanilla for export markets. • Establishing Pineapple and other horticulture produce

processing and canning unit in Sirsi, Karnataka. • Creation of Post Harvest Infrastructure at Srinivaspur / Kolar consisting of a receiving hall, desapping hall, washing, Packing and related equipments for the export of Mangoes from
Dayananda Sagar College of Science, Arts And Commerce

Page 47

EXPORT ANALYSIS
KAPPEC LTD.

Srinivaspur, Kolar and surrounding areas. • Establishing a grape processing unit at Bijapur for production of international quality wine and other related products for exports. • Creation of post harvest infrastructure (cold chain) facility at Bidar for the export of fruits & vegetables

INVESTMENT
The authorised share capital of the Corporation is Rs 500 lakhs. So far the state government has released Rs 75 lakhs out of which Rs 50 lakhs as share capital and Rs 25 lakhs as grant. In addition to this the Government has released an amount of Rs 10 crore in the budget for the creation of post harvest infrastructure facilities in the state based on the potential in a phased manner in order to boost the export of agriculture and horticulture commodities from the State. The Government of Karnataka and Government of India are eligible for investment.

STRUCTURE OF BOARD
The Board of Karnataka State Agricultural Produce Processing and Export Corporation Limited has three directors, representative of the Government of Karnataka. The Board is headed by Chairman, Agriculture. Honourable Minister of

ORGANISATIONAL STRUCTURE

Dayananda Sagar College of Science, Arts And Commerce

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EXPORT ANALYSIS
KAPPEC LTD. •

Managing Director: Managing Director being the Chief Executive of the company, has the overall authority/powers to run the day to day affairs of the organization subject to the superintendence and control by the board.

General Manager: The general manager is the second line officer supporting the Managing Director in decision making process besides co-ordinating various activities of the corporation..

• Assistant Finance Manager: Assistant Finance Manager duties generally cover book keeping and finalization of accounts and general administration matters of the corporation.

Field Officer: To look after the field level

activities of procurement,

grading, packing and export of agri and horticulture commodities. • The supporting staff assists the top level management in smooth carrying out of the business.

PRODUCTS
• • • • • • • • • • •

Maize Rice Ground nut seed Niger seed Safflower Sesame seeds Coffee Cashew nuts Fruits and vegetable Onion Potato
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Dayananda Sagar College of Science, Arts And Commerce

EXPORT ANALYSIS
KAPPEC LTD. • • • • • • • •

Lime Mangoes Pomegranates Grapes Water melon Black pepper Flowers Ornamental plants

COUNTRIES TO WHICH EXPORTED
• USA • United kingdom • Australia • Mexico • Singapore • Srilanka • Turkey • Middle east • Japan • Bangladesh
Dayananda Sagar College of Science, Arts And Commerce

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Arts And Commerce Page 51 .EXPORT ANALYSIS KAPPEC LTD. • Indonesia • Spain • Canada • Italy • Korea • Belgium • Russia • Germany • New Zealand • China • France Dayananda Sagar College of Science.

Arts And Commerce Page 52 . Formative indicators refer to exploring the causal indicators. ANALYSIS OF EXPORTS STATISTICS Today. Exports analysis can be performed by businesses or countries to enhance their growth prospects. However. most exports analyses are conducted using reflective indicators. rather than the effect indicators. The objective is to increase trade and profits. These policy changes are required to speed up a country’s economic growth. researchers have begun to advocate the use of formative indicators as a basis for export performance analysis. tariff peaks and targeted subsidies may also be analyzed in detail. A detailed export review can help devise future-oriented export growth plans. ANALYSIS AND INTERPRETATION OF DATA EXPORT ANALYSIS An exports analysis is an in-depth evaluation of a country’s export statistics so that its economic planners or policymakers can devise policy changes.EXPORT ANALYSIS KAPPEC LTD. Dayananda Sagar College of Science. Areas of concern such as anti dumping measures.

A textile exports analysis of China reveals that the country continues to make its mark in the world textile market. Arts And Commerce Page 53 . when Australia released a review of its export policies and programs. which is conducted by using both objective and subjective measures.EXPORT ANALYSIS KAPPEC LTD. since the removal of the quota regime in 1994. It also comes in handy in analyzing bilateral and multilateral trading systems and various trade policies that regulate the trading systems across the world. This difference in data source also affects export-led growth models. such as the International Monetary Fund and the UN Commodity Trade Statistics. it outlined around 70 recommendations as part of its export promotion and trade and investment policy. When the facts and figures from the two sources are dissimilar. In 2008. Hence. However. export reports benefit countries and their efforts to formulate their overall export-oriented development strategy. it may yield incongruent results. These statistics are a result of comprehensive study of exports. Export data may be obtained from two different sources. HOW TRADE IS ANALYZED Dayananda Sagar College of Science. Countries frame their new policies and programs based on the results of the longterm and short-term export reports. Trade report proves to be of great use in understanding the pattern and trends of trade. the fact remains that export review results may vary. researchers agree on the point that data can be neither interchanged nor correlated. Overall. depending on the export data source used. Countries can utilize export reports to perk up their trade policies and programs.

Dayananda Sagar College of Science. pattern of trade agreement. Besides the yearly World Trade Report. there are many other country-specific trade reviews that are widely used in analyzing the pattern and trends of trade. The yearly and quarterly trade data are extremely helpful for the analysis of domestic and crossborder trade. Different measures are used to analyze trade.EXPORT ANALYSIS KAPPEC LTD. then the economy of that country is said to be in a stable position. nature of the commodity traded. Trade report provides us with all sorts of information regarding the volume of exports and imports. if a trading nation incurs loss from international trade. Arts And Commerce Page 54 . On the other hand. then that economy is said to be in an unfavorable state. Trade review also provides us with an idea about the availability of resources in a particular country and technology used in the production of goods and services. and the like. It is the difference in comparative advantage that determines the terms of Reports or Reviews Used in Trade Analysis The World Trade Report is extensively used in the analysis of trade. If a country continues to accrue gains from trade for successive years. In-depth analysis of a yearly trade report offers a comprehensive picture of how well a nation has performed on the front of exchange of commodities and services both in domestic and international markets.

Onion is consumed by all classes of people-poor and rich and hence assumes a place of essential item. which add to taste and flavour to food and hence it is mainly used in India cuisine and culinary preparations.1 ONION Onion is the largest vegetable produced and consumed not only in India but also in the world. In addition to its use in cuisine. YEAR 2006-2007 2007-2008 QUANTITY(mts) 6771.82 514. it has special qualities.25 4310 VALUE (fob in lakh) 783.EXPORT ANALYSIS KAPPEC LTD. Onion possess very good nutritive and medicinal values. it is classified as vegetable.6% ANALYSIS Dayananda Sagar College of Science. 5.57 PERCENTAGE (%) 100% 63. Although. Arts And Commerce Page 55 . it is also relished in raw form with meals. TABLE-1 (2006-2008) Table showing the export of onion from KAPPEC LTD.

Arts And Commerce Page 56 . The above table indicates that the export quantity of onion has been decreased in the 2007-2008 when it compared in the year 2006-2007.EXPORT ANALYSIS KAPPEC LTD. Due to the shortage in production the export of onion declined.1 GRAPH SHOWING EXPORT OF ONION (2006-08) 100 80 60 40 20 0 2006-07 2007-08 % INFERENCE Dayananda Sagar College of Science.1. GRAPH 5.

YEAR QUATITY(mts) VALUE (fob in lakh) 387. During the year 2007-08 it was decrease by 34. TABLE. 514.6% value Rs. Dayananda Sagar College of Science. Arts And Commerce Page 57 .52 PERCENTAGE (%) 100 2008-2009 2009-2010 2610 2128.82 lakh.4% and reaches to 63. From the above graph we can inferred that the company had the export during the year 2006-07 was Rs.783.EXPORT ANALYSIS KAPPEC LTD.2 (2008-2010) Table showing the export of onion from KAPPEC LTD.57 lakh.95 398. Due to the shortage in production the export of onion decline.350 ANALYSIS The above table indicates that the export quantity of onion has been decreased in the 2009-2010 when it compared in the year 2008-2009.

EXPORT ANALYSIS KAPPEC LTD.1.2 GRAPH SHOWING EXPORT OF ONION (2008-10) 40 35 30 25 20 15 10 5 0 2 008-0 9 200 9-10 % INFERENCE Dayananda Sagar College of Science. GRAPH 5. Arts And Commerce Page 58 .

08 PERCENTAGE(%) 100 275 ANALYSIS Dayananda Sagar College of Science. Arts And Commerce Page 59 . potato is an economically important staple crop in both developed and developing countries. During the year 2009-10 it was decrease to 31% value 514. rice and maize because of its great yield potential and high nutritive value. 5.95 lakh that was 38%. With an annual global production of about 300 million tonnes. It constitutes nearly half of the worlds annual output of all root and tuber crops.28 147. TABLE-3 (2006-2008) Table showing the export of potato from KAPPEC LTD.57 lakh.EXPORT ANALYSIS KAPPEC LTD. From the above graph we can infer that the company had the export during the year 2008-09 was 387.2 POTATO Potato is the world's fourth important food crop after wheat. YEARS 2006-2007 2007-2008 QUANTITY(mts) 336 924 VALUE (fob in lakh) 51.

1 GRAPH SHOWING EXPORT OF POTATO(2006-2008) 300 250 200 150 100 50 0 2006-07 2007-08 % INFERENCE Dayananda Sagar College of Science. Due to the huge increase in the production. GRAPH 5.EXPORT ANALYSIS KAPPEC LTD. The above table indicates that the export quantity of potato has been increased in the year 2007-2008 when it compared in the year 2006-2007. the supply of onion has also increased.2. Arts And Commerce Page 60 .

Due to the decrease in the demand from foreign country.36 PERCENTAGE (%) 216.28 lakhs .51. Arts And Commerce Page 61 .EXPORT ANALYSIS KAPPEC LTD. From the above graph we can inferred that the company had the export during the year 2006-07 was Rs. During the year 2007-08 it shows the increase by 275% and the value was Rs.147.6% ANALYSIS The above table indicates that the export quantity of potato has been decreased in the 2009-2010 when it compared in the year 2008-2009.08 lakhs Table-4 (2008-2010) Table showing the export of potato from KAPPEC ltd.88 32. YEAR 2008-2009 2009-2010 QUANTITY(mts) 728 56 VALUE (fob in lakh) 116. Dayananda Sagar College of Science.6% 16.

2. GRAPH 5.EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 62 .2 GRAPH SHOWING EXPORT OF POTATO(2006-2008) 250 200 150 100 50 0 % 2 008-09 2 009 -10 INFERENCE Dayananda Sagar College of Science.

During the year 2009-10 it shows the decrease to 16. for instance. Arts And Commerce Page 63 . 5. in cheese. Turmeric is sometimes substituted for saffron (which is far more expensive).EXPORT ANALYSIS KAPPEC LTD. so it's important to be judicious when adding this spice to foods. powdered rhizome is used in curry powder. Turmeric's flavor has been described as peppery and somewhat bitter.6% and the value was 32. Turmeric was prized as a dye for centuries. TABLE-5(2006-2008) Table showing the export of turmeric powder from KAPPEC LTD.6% . The dried. but aside from their color. and prepared mustard. YEARS 2006-2007 2007-2008 QUANTITY(mts) 36 VALUE (fob in lakh) 10. thanks to its power to tint fabric--or food--a brilliant yellow-gold. From the above graph we can inferred that the company had the export during the year 2008-09 was 116 lakh that was 216. the two spices have little in common. some types of pickles.36lakh .3 TURMERIC POWDER Turmeric is a spice derived from a rhizome (a type of root) native to India and Southeast Asia. and is used as a natural food coloring.52 PERCENTAGE (%) 100% - Dayananda Sagar College of Science.

1 GRAPH SHOWING EXPORT OF TURMERIC POWDER(2006-2008) 100 90 80 70 60 50 40 30 20 10 0 % 2006-07 2007-08 Dayananda Sagar College of Science. GRAPH 5. ANALYSIS The above table indicates that the export quantity of turmeric powder has been nil in the year2007-2008 when it compared in the year 2006-2007. Due to the decrease in the demand and production form the foreign country. Arts And Commerce Page 64 .3.EXPORT ANALYSIS KAPPEC LTD.

39 30.8% ANALYSIS The above table indicates that the export quantity of turmeric powder has been increased in the year 2009-2010 when it compared in the year 2008-2009. YEAR QUANTITY(mts) VALUE (fob in lakh) 2008-2009 2009-2010 34 50.EXPORT ANALYSIS KAPPEC LTD. During the year 2007-08 it shows the nil export. INFERENCE From the above graph we can inferred that the company had the export in the year 2006-07 for the value of 10. Dayananda Sagar College of Science.52 lakh.4% 139.350 15. TABLE – 6 (2008-2010) Table showing the export of turmeric powder from KAPPEC LTD LTD. Arts And Commerce Page 65 . Due to the increase in demand from foreign countries.37 PERCENTAGE (%) 94.

EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 66 .3. GRAPH 5.2 GRAPH SHOWING EXPORT OF TURMERIC POWDER(2006-2008) 140 120 100 80 60 40 20 0 2008-09 2009-10 % INFERENCE Dayananda Sagar College of Science.

For example. And during the year 2009-10 it had a bumper increase in export that was 139.4 FRUITS & VEGETABLE The vegetable usually means an edible plant or part of a plant other than a sweet fruit or seed. However. or root of a plant. Arts And Commerce Page 67 .EXPORT ANALYSIS KAPPEC LTD. This typically means the leaf.7 (2006-2008) Table showing the export of fruits & vegetable from KAPPEC LTD.37 lakh . YEAR 2006-2007 2007-2008 QUANTITY(mts) 1. while others consider them a separate food TABLE. Therefore.8% value of 30.4%. the application of the word is somewhat category. and its meaning is largely based on culinary and cultural tradition.39 lakh that was 94.435 VALUE (fob in lakh) 0. arbitrary and subjective.40 PERCENTAGE (%) 100 - ANALYSIS Dayananda Sagar College of Science. the word is not scientific. From the above graph we can inferred that the company had the export in the year 2008-09 for the value of 15. stem. some people consider mushrooms to be vegetables. 5.

1 GRAPH SHOWING EXPORT OF FRUITS & VEGETABLE(2006-2008 100 90 80 70 60 50 40 30 20 10 0 qtys 2006-07 2007-08 Dayananda Sagar College of Science.4. The above table indicates that the export quantity of fruits & vegetable has been nil in the year 2007-2008 when it compared in the year 2006-2007 .EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 68 . GRAPH 5. due to the decrease in the demand form the foreign countries.

During the year 2007-08 it shows the nil export.EXPORT ANALYSIS KAPPEC LTD.06 PERCENTAGE (%) 100 ANALYSIS The above table indicates that the export quantity of fruits & vegetable has been increased in the year 2009-2010 when it compared in the year 2008-2009. Arts And Commerce Page 69 . INFERENCE From the above graph we can inferred that the company had a export in the year 2006-07 of 1.210 0. YEAR QUANTITY(mts) VALUE (fob in lakh) 2008-2009 2009-2010 0. TABLE-8 (2008-2010) Table showing the export of fruits & vegetable from KAPPEC LTD.435mts value 0. Due to the decrease in production the export of fruits & vegetable. Dayananda Sagar College of Science.40 lakh .

GRAPH 5. Arts And Commerce Page 70 .2 GRAPH SHOWING EXPORT OF FRUITS & VEGETABLE(2008-2010) 16 14 12 10 8 6 4 2 0 2008-09 2009-10 % Dayananda Sagar College of Science.EXPORT ANALYSIS KAPPEC LTD.4.

Arts And Commerce Page 71 . INFERENCE From the above graph we can inferred that the company had a export in the year 2008-09 was nil . The role of Karnataka State Agricultural Produce Processing and Export Corporation (KAPPEC) in equipping the pomegranate farmers from Karnataka to be competitive in the global markets is crucial. It also examines the various activities undertaken by KAPPEC for the development of pomegranate exports from Karnataka and the effectiveness.EXPORT ANALYSIS KAPPEC LTD.5 PAMOGRANETES There is tremendous potential for Indian pomegranates in the global markets. 5. TABLE.9(2006-2008) Table showing the export of pamogranetes from KAPPEC LTD. The present study is aimed at understanding the growth of pomegranate exports from India. YEARS QUANTITY(mts) VALUE (fob in lakh) 2006-2007 2007-2008 PERCENTAGE (%) - Dayananda Sagar College of Science.6%.210 mts value of 0.06 lakh that was 14. Karnataka and Maharashtra states are the leading producers of pomegranates in India. During the year 2009-10 it shows the export of 0.

1 GRAPH SHOWING EXPORT OF PAMOGRANETES(2006-2008) 1 0.4 0.8 0.EXPORT ANALYSIS KAPPEC LTD.6 0. GRAPH 5.5. ANALYSIS The above table indicates that the export quantity of pamogranetes has been nil during the last two year . Arts And Commerce Page 72 .2 0 % 2006-07 2007-08 Dayananda Sagar College of Science. Due to the decrease in the demand from the foreign countries.

Dayananda Sagar College of Science. YEAR QUANTITY(mts) VALUE (fob in lakh) 2008-2009 2009-2010 30. TABLE-10 (2008-2010) Table showing the export of pamogranetes from KAPPEC LTD.16 PERCENTAGE (%) 100 ANALYSIS The above table indicates that the export quantity of pamogranetes has been increased during the year 2009-2010 when it compared in the year 2008-2009.240 41. INFERENCE From the above graph we can inferred that the company had not exported during the years 2006-07.2007-08.due to the increase in the demand from foreign countries.EXPORT ANALYSIS KAPPEC LTD. Arts And Commerce Page 73 .

EXPORT ANALYSIS KAPPEC LTD.5. GRAPH 5. Arts And Commerce Page 74 .2 GRAPH SHOWING EXPORT OF PAMOGRANETES(2008-2010) 10 0 90 80 70 60 50 40 30 20 10 0 200 8-09 200 9-10 % INFERENCE Dayananda Sagar College of Science.

54 PERCENTAGE (%) 100 ANALYSIS Dayananda Sagar College of Science.240 mts worth 41. The state is likely to end the present sugar year (October 2009 to Sept 2010) with a total production of 25 lakh tonnes. YEARS 2006-2007 2007-2008 QUANTITY(mts) 2080 VALUE (fob in lakh) 234. mills in Karnataka have set a target to export 5 lakh metric tonnes. TABLE. 5.EXPORT ANALYSIS KAPPEC LTD. From the above graph we can inferred that the company had not exported during the years 2008-09.5 per cent over last year. a growth of 31. we will not be able to recover a part of the losses that we will suffer. “Unless we export the surplus production this year.6 SUGAR Armed with a surplus of over 5 lakh tonnes of sugar this year. Arts And Commerce Page 75 .11 (2006-2008) Table showing the export of sugar from KAPPEC LTD." sources in the South Indian Sugar Mills Association said.16 lakhs. And during the year 2009-2010 company had exported the 30. We are facing a state of glut this season and only the export of excess stock will save us from a severe situation.

Due to the increase in the demand from the foreign country. Arts And Commerce Page 76 .6.1 GRAPH SHOWING EXPORT OF SUGAR(2006-2008) 100 80 60 40 20 0 % 2006-07 2007-08 INFERENCE Dayananda Sagar College of Science. GRAPH 5. The above table indicates that the export quantity of sugar has been increased in the year 2007-2008 when it compared in the year 2006-2007.EXPORT ANALYSIS KAPPEC LTD.

Arts And Commerce Page 77 .EXPORT ANALYSIS KAPPEC LTD. YEAR QUANTIYT(mts) VALUE lakh) (fob in PERCENTAGE (%) 2008-2009 2009-2010 - - - ANALYSIS The above table indicates that the export of sugar has been nil in the last two years.54 lakh and during the year 2006-2007 the export was nil. TABLE-12 (2008-2010) Table showing the export of sugar from KAPPEC LTD. From the above graph we can inferred that the company had the export in the year 2007-08 of 2080 mts worth of 234. Due to suddenly decrease in demand from the foreign countries. Dayananda Sagar College of Science.

Arts And Commerce Page 78 .9 0 .2 0 .2 GRAPH SHOWING EXPORT OF SUGAR(2008-2010) 1 0 .8 0 .5 0 . GRAPH 5.7 0 .EXPORT ANALYSIS KAPPEC LTD.1 0 20 08-0 9 20 09-1 0 % INFERENCE From the above graph we can inferred that the company had the export in the year 2008-2009 and 2009-2010 was nil.6. Dayananda Sagar College of Science.4 0 .6 0 .3 0 .

• The growth of the company is not in maintenance of the exports as it is fluctuating every year and when comparing with the different products exported.” Has been undertaken with the objective to analyze and interpret the company’s export performance.2610.35 mts in the years 2007-08.2009-10 respectively.2008-09. • The growth of onion in the year 2006-07 had a tremendous increase in export quantity to 6771. The analysis of the company was undertaken with the help of tally and graphical representation. Arts And Commerce Page 79 .the company has achieved tremendous progress over the past two years which shows that the company has started gradually recovering from the recession period. It started decreasing from the next year 4310. FINDINGS FINDINGS The study entitle “A study on export analysis of different products towards processing and export industry with special reference to Karnataka state agricultural produce processing and export corporation ltd.2128.25 mts . Dayananda Sagar College of Science. In general .EXPORT ANALYSIS KAPPEC LTD.

Arts And Commerce Page 80 .2009-10 respectively. In the year 2009-10 it shows the export of 50. • The growth of potato during the year 2007-08 was 924mts .and in the year 2007-08 and 2008-09 was nil. • The pamogranetes shows the very nominal export performance . • The fruits and vegetable shows the average export performance only by exporting in two year. In the year 2007-08 it shows the export of 2080mts. In the year 2006-07 had a export of 1.350mts and in the year 2007-08 it was nil.210mts . Dayananda Sagar College of Science. It started decreasing from the next year to 728mts and 56mts in the 2008-09. And in the year 2006-07and 2008-09 the export quantity was nominal.EXPORT ANALYSIS KAPPEC LTD. It had only exported in the year 2009-10 was 30. • The growth in the export of turmeric powder is very much uneven. • The sugar also shows a nominal export by exporting in a single year during the last four years.240mts.435mts and in the year 2009-10 had a 0.

1 CONCLUSION Karnataka State Agricultural Produce Processing And Export Corporation Ltd. The analysis and interpretation of the export performance of the company has helped to know the export standings of the firm and helped in identifying its strengths and weakness. The overall export of the firm during the last 4 year has shown a high fluctuation due to the seasonal production of the agricultural products and also heavily hit by Dayananda Sagar College of Science. over the year under study but company has always maintained adequate profit during these years . this implies that the firm’s position to meet its current obligations with the existing resources is very good. Arts And Commerce Page 81 . This report shows a very great fluctuation but the firm always maintains the profits which is very comfortable for the suppliers.EXPORT ANALYSIS KAPPEC LTD. The export position of the firm showing the uneven trends towards different products .it has been able to capture a prominent place in this sector with its internationally accepted quality standards and timely delivery. Although having been in the agricultural market . RECOMMENDATIONS AND CONCLUSION 7.

2 RECOMMENDATIONS • In the case onion the company shows the moderate growth in the last four year. • In the case of potato the company shows the average growth during the year 2007-08 was 924mts . The company had to maintain the cold storage for the export when ever demand arises. It had export quantity 4310. The growth in the export of turmeric powder is very much uneven. the down turn and recession.2128.2009-10 respectively. • In the case of turmeric powder the company shows the below the average export.2008-09. Thus.2610. It started decreasing from the next year to 728 and 56 in the 2008-09. But from the export analysis of the different products we observed that the firm has able to earn the profit during the last five year which signifies that the firm has strongly started recovering from the recession. 7. Though onion is seasonal crop firm is able to export the in last 4 years. export analysis of different products is very useful to analyse the export performance of Karnataka State Agricultural Produce Processing And Export Corporation Limited and high lightened the export performance of the company in the some products and also helped in the avocation of certain strategies to be followed by kappec ltd which is indispensable to its future growth.EXPORT ANALYSIS KAPPEC LTD. The growth of onion in the year 2006-07 had increase in export quantity to 6771. Arts And Commerce Page 82 .35mts in the years 2007-08.2009-10 respectively. In Dayananda Sagar College of Science. For the more export companies had to the stock of onion in cold storage.25 mts .

the year 2009-10 it shows the export of 50.210mts .EXPORT ANALYSIS KAPPEC LTD. Dayananda Sagar College of Science. The fruits and vegetable shows the average export performance only by exporting in two year. And in the year 2006-07and 2008-09 the export quantity was nominal. Arts And Commerce Page 83 .240mts. The shows the company is recovering very fast and it is very good for the company . For the better export of turmeric powder .and2007-08 and 2008-09 was nil.435mts and in the year 2009-10 had a 0.company had to maintain the local suppliers and farmers. To perform good in the case of fruits and vegetable the company had to maintain more cold storage. The cultivation of the turmeric plants is seasonal that’s why firm is not able to produre the turmeric powder every. It had only exported in the year 2009-10 was 30. For this company need to built more cold storage for to export the products in of season also. • In the case of pamogranetes the company shows the very nominal export performance and it had a nil export during the year 2006-09. • In the case of sugar the company shows the nominal performance by producing only in last year with the quantity of 2080 mts which very large quantity. • In the case of fruits and vegetable the company shows average export because of seasonal cultivation of vegetables.350mts and in the year 2007-08 it was nil. In the year 2006-07 had a export of 1. The recession and global down turn being affecting the economy’s export industry is the major reason for the huge fluctuation in firms business.

Dayananda Sagar College of Science.EXPORT ANALYSIS KAPPEC LTD. If there is no demand from the outside country has to face many problems. Export form the company is basically depends upon the demand from the outside country. Therefore to maintain stability and prevention of high fluctuation . the firm should try to achieve stability which would help in company better performance and also helps in better utilization of the funds and human resource. Arts And Commerce Page 84 .

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