Professional Documents
Culture Documents
COMPETITIVENESS PROJECT
Prepared by:
Page
List of Tables 2
List of Figures 3
Executive Summary 4
References 53
Table 1: Top 10 garlic producing countries/regions for the year 2014 ..................................................... 8
Table 2: Global total of production and yield of garlic for the year 2014 ................................................. 9
Table 3: Continent wise share of production of garlic for the year 2014 .................................................. 9
Table 4: Global production, yield and harvested area of garlic for the years 2009-2014 ........................ 9
Table 5: Annual international trade prices of garlic for 5 years .................................................................. 9
Table 6: International import data of garlic (fresh/chilled) for the year 2015, 2016 & 2017............... 10
Table 7:International Export data of garlic (fresh/chilled) for the year 2015, 2016 & 2017 ............... 17
Table 8: Garlic Production In India .............................................................................................................. 23
Table 9: Indian production and yield of garlic in the year 2014 ............................................................... 23
Table 10: Indian production, yield and area harvested data of garlic for 2009 to 2014 ........................ 24
Table 11: India import of garlic (fresh/chilled) (Qty in MT and value in Rs lakhs).............................. 24
Table 12: India import of garlic (dried) (Qty. in MT and value in Rs. lakhs) ......................................... 24
Table 13: Export of garlic value and quantity from 2009 to 2013............................................................ 26
Table 14: Export of fresh/chilled garlic from India (Qty. in MT and value in Rs lakhs) ..................... 26
Table 15: Export of dried garlic from India (Qty in MT and value in Rs. lakhs)................................... 27
Table 16: Area & Production of Garlic in the State Of Rajasthan (2017-18) ......................................... 30
Table 17: Garlic Production in Cluster-Districts (2017-18) ..................................................................... 30
Table 18: Season availability of garlic ............................................................................................................ 34
Table 19: Market arrivals and Prices of Garlic in Rajasthan for the period 1 April 2016 to 31 March
2017..................................................................................................................................................................... 34
Table 20: Comparative analysis of Traditional and Modern process technology of Garlic Peeling &
Packaging ........................................................................................................................................................... 36
Figure 1:Top Ten Importers & Their Share in Worlds Import ................................................................ 16
Figure 2:Top Ten Importers & Their Ranking in Worlds Import .......................................................... 16
Figure 3: Top Ten Importers in 2017 & their annual growth in value between (2013-2017) .............. 17
Figure 4:Top Ten Exporters & Their Share in Worlds Exports............................................................... 21
Figure 5:Top Ten Exporters & Their Ranking in Worlds Export: ......................................................... 22
Figure 6:Top Ten Exporters in 2017 & their annual growth in value between (2013-2017) .............. 22
Figure 7: Import of garlic paste in terms of value (in USD)...................................................................... 25
Figure 8: Imports of garlic in terms of quantity of import (in kg)............................................................ 25
Figure 9:Top Ten Export Destination for HSN 33012947, Including Garlic Oil ................................. 28
Figure 10:Top Ten Export Destination for HSN 33012947, Including Garlic Oil , (Values) ............. 28
Figure 11: Top Ten Export Destination for HSN 21069099, Including Garlic Powder ...................... 29
Figure 12:Top Ten Export Destination for HSN 21069099, Including Garlic Powder (Values) ....... 29
Figure 13: Steps Involved In Garlic Peeling................................................................................................. 35
Figure 14: Garlic grader ................................................................................................................................... 38
Figure 15: Garlic bulb breaker ........................................................................................................................ 39
Naturally, existing and upcoming agro and food processing units in the state play a highly important
role in the scheme of things, i.e. forward linkages in agriculture. Evidently, higher investments in such
agribusinesses will bolster development and sustainability of FPCs and farmers thereto. In line with
the approach, RACP, through its Agri-Business Promotion Facility (ABPF), aims at:
Promoting agribusiness investments in the state
And providing incubation facilities to foster innovation & entrepreneurship
The objective of this report is “scouting of technologies and suitable replicable models” in Peeled
Garlic (Raw Garlic processing). Broadly, the report aims to provide some insights, to prospective
entrepreneurs and existing unit holders in the state - on technological gaps identified in existing units,
on several technological advances in the industry, on benchmarking technology and efficiency vis-à-
vis industry bests in other parts of the country and providing suitable replicable models for micro,
small and medium/large scale investors.
Consisting anti-rheumatic, carminative and digestive properties, garlic is consumed all over the
world in form of an ingredient in various cuisines. Garlic is used mostly in cooking as it softens
its pungent flavour, roasted garlic is also being consumed as it balances the flavour by offering
nutty and delicate flavour. A fresh and raw form of garlic is consumed more than the other forms
as the raw garlic is effective in cold and flu, high blood pressure, heart diseases, it is considered
as one of the best antibiotics for fungal and bacterial infections. Manufacturers are also focusing
on retaining maximum benefits and taste offered by raw garlic even after converting it into a paste
or powdered form. The major market players are also focusing on infusing garlic with oil to
produce flavoured oil. Garlic is also being used as a meat and fish preservative, offering long
shelf-life to these foods. Restaurants and fast food chains also use fresh garlic as it enhances the
taste of the food.
According to a study by Fact.MR, the global garlic market is expected to experience moderate growth.
The market is estimated to register 4.3% CAGR during the forecast period 2017-2022. Due to the
increasing consumption of garlic as an ingredient in various foods and also being used as a traditional
medicine, the demand of garlic is boosting. Manufacturers are also producing garlic in various forms
such as paste, powder, oil, etc. to make it easy to use and to also balance the flavour. It is observed
Although, India is second in area and production of garlic in the world, the productivity per hectare
is very low as compared to China, USA and other countries where the crop is grown commercially.
Further, over the years the, productivity in India has remained static. In the year 2014-15, the garlic
production in India was led by Madhya Pradesh which produced 424,500 tons of garlic with total
share of 29.78%. It is followed by Gujarat which has total share of 22.32%. Rajasthan came fourth
with production of 172,040 tons with share of 12.07%. The total Indian production was calculated to
be 1,425,460 tons for the year 2014-15.
With regards to import of fresh/chilled garlic, India did not see any noticeable imports till the year
2013-14. In in the year 2014-15, India started importing fresh/chilled garlic from the region Egypt
Arab Republic. In the year 2015-16, India imported garlic from Nepal worth Rs 71,660,000 a quantity
of 1761.9 MT.
India is a major exporter of garlic and the following table shows the export figures of India for garlic
for the years 2009 to 2013. It is observed that export has seen an upward trend except for the year
2011 when the values had declined. Both quantity and value of exports has been increasing during the
year 2013, 29,461 tons were exported at a value of 11,340 thousand USD.
Rajasthan is one of the states which is leading the race in garlic production. Out of 12 districts, Kota
zone, including Baran district, is leading zone which has highest area under cultivation of 7476 hectares
during Rabi season of 2011-2012 out of 20,840 hectares’ garlic area in Rabi in 2011-2012. The
prominent Garlic production areas of Rajasthan state are in the districts of Chittorgarh, Jhalawar,
Baran and Kota. Rajasthan has a specific Mandi for marketing of Garlic at Chhipabarod in Baran
district.
The processing operations with Garlic globally particularly include Garlic grading, bulb breaking, clove
separation, size reduction, peeling, clove flaking, dehydration, blending, packaging, storage, grinding
etc. It’s processing require special skill and care, because it’s essential volatile oil is concentrated in
epidermal cell, which is mainly responsible for its characteristic aroma.
Export and value addition in the form of processed prod-ucts are the important factors for stabilizing
prices in internal markets and thereby bringing sustainability in production of certain commodities.
To regu-late the production and prices it is necessary to develop the dehydration industry in our
country. Processing industries in any commodity play an im-portant role in stabilizing prices in
domestic markets. Garlic of-fer very good scope for value addition in the form of dehy-drated flakes,
powder, granules, paste and Garlic salts. Among all these products, peeled garlic, de-hydrated flakes
and powder of Garlic are important from Indian export point of view.
In order to prepare peeled garlics, harvested plants are dried in the sunlight for 1-2 days to bring the
moisture levels down to 18%. This dried plant is then thrashed to remove the seeds. Seeds are further
dried in the shade to bring the moisture levels down to 9%. Garlic seed is mainly processed into
powder by crushing, and this powder, which enjoys an aroma, is used as a food ingredient. The
cleaning process involves separation of whole seeds, splits, and other wastages. To separate these,
different hole-size sieves are used in the process. This process involves various costs, including
machines, labour, power, etc. A Garlic processor in the Kota / Ramganj mandi incurs approximately
Rs15-16 per kg above his buying price in the mandi. These costs include commission (3%), mandi
cess (1.6%), VAT, labour, cleaning charges, etc. Although Garlic seeds are consumed in an
unprocessed form; however, its good quantity is also being processed to facilitate the international
trade profitability and palatability.
RACP-ABPF shall undertake mix of some or several initiatives to disseminate the suggested
technologies and models, which may broadly include:
Workshops for prospective entrepreneurs/groups, existing industry owners and BoDs of
FPCs
Facilitate technology benchmarking exposure visits within and outside state for prospective
entrepreneurs/groups, existing industry owners and BoDs of FPCs
Seminars and Workshops in association with Industry Associations, Technical Institutes and
R&D Institutions
Technology Meets and Tie-ups with Technology Suppliers, Technical Institutes and experts
Facilitate through consultancy and business development services
Dissemination of success stories of units facilitated by ABPF through appropriate media
Dissemination through web portals and mobile applications
The models and business plans suggested in this report are broadly generic in nature, however involve:
technology profile
civil works requirement
raw material sourcing and logistic costs for sourcing raw material
capacity utilization for different scenarios
realistic assessment of investment and working capital needs
possible sources of funding
financial analysis
The suggested models and business plans are for optimal capacities which can be fine-tuned to the
scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on
statutory clearances needed for operating the business, required licenses, ways of leveraging various
government schemes/subsidies and several other aspects for effective technology adoption. In order
to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives,
which may broadly include:
Investor road shows
B2B Meets
Establishing Mentor Network
Mentor-Mentee Workshops
Facilitating Access to Finance
Creating a robust knowledge base
Preparation of business plans
Review of business plans for funding through RACP
Garlic, Allium sativum, is an herbaceous, annual, bulbous plant in the family of Amaryllidaceae, grown
for its pungent, edible bulb of the same name. The garlic plant can either have a short, woody central
stem (hardneck) or a softer pseudostem made up of overlapping leaf sheaths (softneck). Hardneck
varieties produce a false flower stock which is termed a 'scape' and produce larger garlic cloves but in
smaller numbers. Softneck garlic is the most popular variety of garlic grown in the US. The bulb can
be up to 7 cm (2.8 in) in diameter and is made up of 1–15 cloves. The stem is very short and flattened
and gives way to a pseudostem, the garlic plant can possess 6–12 flat, blade-like leaves which can
stretch up to 50 cm (19.7 in) long. The plant can reach 60 cm (23.6 in) in height which survives one
growing season. Garlic is believed to have originated from Asia.1
Origin
Garlic started its journey in central Asia, domesticated during Neolithic times and spread to the Middle
East and northern Africa in 3000 BC, which quickly enabled it to reach Europe. The incredible journey
of garlic through our history touched every major civilization of the ancient world, but its true origins
lies in West and Central Asia. The wild plant called Allium longicuspis evolved for processing
unitennia, eventually shaping itself into the form of the modern Allium sativum, or garlic. The plant
was identified by the ancient Indians who managed to domesticate it around six thousand years ago,
incorporating its taste and medicinal properties.
Importance
Economic Importance: Garlic is generally used for flavoring the food. But over the years, it has also
been used as a medicine to prevent or treat various types of diseases. Presented below is the economic
importance of garlic:
Cash crop: USA is said to be the world’s largest import market of fresh garlic, followed by
Indonesia, France, Germany, Australia and Brazil.
Flavoring in food: Garlic is a common flavoring substance used while cooking. It serves as
a food additive which prevents food poisoning.
Pharmaceutical Industry: Garlic is used as raw material in pharmaceutical industries. It is
used to produce supplements which have enteric coatings.
Low capital requirement: In the presence of a good farm site, garlic production does not
require a huge start-up capital. It is less affected by destructive pests and diseases unlike the
1
https://www.plantvillage.org/en/topics/garlic (retrieved on 18th April 2017)
In the year 2014, China was the global leader in the quantity of garlic produced with a production of
20,058,388 tons which represented approximately 80% share of the global market. The other
producers are India and Republic of Korea followed by Bangladesh, Egypt and others.
China also includes the China Mainland which is the geopolitical area under the direct jurisdiction of
the People's Republic of China (PRC). China Mainland alone produced 19,984,724 tons of garlic in
the year 2014.
The detailed production report for 2014 of the top 10 countries/regions is presented in the table
below:
Table 1: Top 10 garlic producing countries/regions for the year 2014
Rank Country/Region Production Quantity (in tons)
1 China 20,058,388
2 China, mainland 19,984,724
3 India 1,252,000
4 Republic of Korea 353,761
5 Bangladesh 312,000
6 Egypt 263,167
7 Russian Federation 256,406
8 Myanmar 208,900
9 Ukraine 191,140
10 Spain 177,420
11 USA 175,450
(Source: http://www.fao.org/faostat/en/#data/QC/visualize(retrieved on 18th April 2017)
The total global production quantity of garlic in the year 2014 was 24,939,965 tons and the harvested
area to generate the above-mentioned production quantity was 1,547,381 hectares of land. The tables
2
https://www.herbazest.com/herbs/garlic(retrieved on 18th April 2017)
Comparing the data of past 5-year period from 2009 to 2014, it is observed that the production
quantity has an upward trend and is increasing by 2-3% every year. Also, the area under production
has been increasing simultaneously throughout the period. On the contrary, the yield, hectogram per
hectare, has a downward trend during the said period. Based on the data, it can be concluded that the
increase in production was on account of increase in the harvest area. The detailed numbers are
presented in the table below:
Table 4: Global production, yield and harvested area of garlic for the years 2009-2014
Year Production (in tons) Yield (hg/ha) Harvested Area (ha)
2009 22,045,317 167,017 1,319,944
2010 22,557,355 168,774 1,336,544
2011 23,088,184 166,428 1,387,275
2012 23,411,764 162,037 1,444,841
2013 24,188,693 155,002 1,560,544
2014 24,939,965 161,175 1,547,381
(Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017))
International trade of garlic comprises of four types of garlic which have been identified in the table
presented below. The table gives international price details of the four types of garlic traded in the
world market for the current year till April 2017 and the past 4 years. It is observed that the maximum
and minimum prices were around USD 1500-2000 for the years 2013, 2014 and 2015. But the year
2016 has seen a drastic increase in the prices of garlic which shot up to USD 8000. The year 2017 till
now has further seen an increase in the value of the minimum prices indicating that garlic is
performing very well in the international trade market.
Table 5: Annual international trade prices of garlic for 5 years
Chinese Grade A Chinese top grade
Chinese powdered, Chinese first grade
Type of dehydrated flakes, garlic granules,
CFR NW Europe granules, CFR NW
Garlic CFR NW Europe CFR NW Europe
(USD/t)* Europe (USD/t)
(USD/t)* (USD/t)*
Max Min Max Min Max Min Max Min
Year
Price Price Price Price Price Price Price Price
Import Scenario
Table 6: International import data of garlic (fresh/chilled) for the year 2015, 2016 & 2017
2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
World 1885485 1845155 1918747
Indonesia 479941 444301 549767
Brazil 161760 173044 159257
Malaysia 115657 138548 154561
United States of America 87555 87366 89913
Philippines 52361 58755 68014
United Arab Emirates 60666 60760 66883
Russian Federation 52555 51161 53944
Saudi Arabia 46666 45228 49475
Bangladesh 55327 33160 42585
Thailand 68431 34722 41775
Pakistan 31498 51372 37070
Taipei, Chinese 2889 18036 28122
United Kingdom 30038 33844 28082
Sri Lanka 28199 30974 27488
Netherlands 26440 30727 26313
France 26234 26865 26176
Italy 28995 27366 24531
Mali 5049 24504
Germany 22613 23462 23566
Japan 20496 20597 20917
Canada 18440 18393 18647
Colombia 21271 19826 17691
Morocco 11604 11245 13159
Mexico 14730 15623 13090
Ecuador 15347 12070 12492
Australia 10995 13625 12290
Senegal 11423 10229 12269
Tunisia 9791 8247 12133
Portugal 12752 12983 11692
Export Scenario
Table 7:International Export data of garlic (fresh/chilled) for the year 2015, 2016 & 2017
Figure 6:Top Ten Exporters in 2017 & their annual growth in value between (2013-2017)
Although, India is second in area and production of garlic in the world, the productivity per hectare
is very low as compared to China, USA and other countries where the crop is grown commercially.
Further, over the years the, productivity in India has remained static.
Table 8: Garlic Production In India
Comparing the data for past 5 Year period from 2009 to 2014, it is observed that the production
quantity has shown an upward trend and is increasing by 1-2% every year. Also, the area under
Import of Garlic
With regards to import of fresh/chilled garlic, India did not see any noticeable imports till the year
2013-14. In in the year 2014-15, India started importing fresh/chilled garlic from the region Egypt
Arab Republic. In the year 2015-16, India imported garlic from Nepal worth Rs 71,660,000 a quantity
of 1761.9 MT. The following table presented shows the import of fresh/chilled garlic in India for the
past 3 years.
Table 11: India import of garlic (fresh/chilled) (Qty in MT and value in Rs lakhs)
2013-14 2014-15 2015-16
Country
Qty Value Qty Value Qty Value
Nepal 0 0 0 0 1,761.91 716.6
Egypt Arab Republic 0 0 432 101.61 0 0
Total 0 0 432 101.61 1,761.91 716.6
Considering India’s import of dried garlic, a noticeable quantity was imported in the year 2013-14.
However, in the year 2014-15, there were no major imports. In the year 2015-16, India imported dried
garlic from China Mainland worth a value of 2,594,000 a quantity of 12 MT. The following presented
table gives details of the imports of dried garlic for past 3 years.
Table 12: India import of garlic (dried) (Qty. in MT and value in Rs. lakhs)
2013-14 2014-15 2015-16
Country
Qty. Value Qty. Value Qty. Value
China Mainland 6 15.76 0 0 12 25.94
Netherland 0 0 0.1 0.34 0 0
Singapore 3 9.92 0 0 0 0
United States 0.4 1.15 0 0 0 0
Total 9.4 26.83 0.1 0.34 12 25.94
With regards to quantity import of garlic paste during the period of February 2014 to October 2016,
it is observed that there were few imports during the past years. Though, there was reported an
increase in imports during the months of February 2015 and July 2016 when 592 kg and 1593 kg
quantity were imported respectively. The graph presented below gives details of the imports of garlic
paste in terms of quantity of the imports.
Figure 8: Imports of garlic in terms of quantity of import (in kg)
During the period of February 2014 to October 2016, the average price per unit of import was USD
10.19. The highest import price was in January 2015 where the average price per unit was 40.04. Prices
more or less remained in the range of 12-22 USD during the year 2016 with a decline trend towards
the end of the year. The following graph shows the average prices per unit levels for the different
months.
The table presented below shows the export of fresh/chilled garlic from India during the past 3 years.
As per reports of 2015-16, it is observed that Malaysia ranks first in importing garlic from India with
an export quantity of 5,123.02 MT worth a value of Rs 221,277,000. Malaysia is followed by Pakistan,
Sri Lanka, Vietnam Social Republic and others. The details about the export figures have been
presented in the table below:
Table 14: Export of fresh/chilled garlic from India (Qty. in MT and value in Rs lakhs)
2013-14 2014-15 2015-16
Country
Qty Value Qty Value Qty Value
3
https://www.zauba.com/importanalysis-garlic+oil-report.html (retrieved on 18th April 2017)
4
https://www.zauba.com/importanalysis-garlic+powder-report.html (retrieved on 18th April 2017)
Morocco 0 0 0 0 28 16.94
United Arab
7.1 5.27 1.36 0.7 15.1 11.99
Emirates
Source: DGCIS Annual Export;
http://agriexchange.apeda.gov.in/indexp/Product_description.aspx?hscode=07032000(retrieved on 18th April
2017)
The table presented below shows the export of dried garlic from India during the past 3 years. As per
reports of 2015-16, it is observed that Mexico ranks first in importing dried garlic from India with an
import quantity of 190 MT worth a value of Rs 17,267,000. Mexico is followed by UAE, Kazakhstan,
Nepal and others. The details about the export figures are presented here under:
Table 15: Export of dried garlic from India (Qty in MT and value in Rs. lakhs)
2013-14 2014-15 2015-16
Country
Qty Value Qty Value Qty Value
Mexico 231 173.61 145 113.12 190 172.67
Figure 10:Top Ten Export Destination for HSN 33012947, Including Garlic Oil , (Values)
Figure 12:Top Ten Export Destination for HSN 21069099, Including Garlic Powder (Values)
Garlic
S. No. DISTRICT
Area (Ha) Production (MT)
1 AJMER 2 6
2 ALWAR 1 2
3 BANSWARA 0 0
4 BARAN 41779 292453
5 BARMER 0 0
6 BHARATPUR 0 0
7 BHILWARA 574 2139
8 BIKANER 7 8
9 BUNDI 3345 16896
10 CHITTOR 6610 33921
11 CHURU 0 0
12 DAUSA 0 0
13 DHOLPUR 1 5
14 DUNGARPUR 14 70
15 GANGANGAR 85 1153
16 HANUMANGARH 48 89
17 JAIPUR 24 29
18 JAISALMER 0 0
19 JALORE 3 6
20 JHALAWAR 27763 166578
21 JHUNJHUNU 351 702
22 JODHPUR 2452 36780
23 KARUALI 4 13
24 KOTA 22157 144021
25 NAGAUR 105 1302
26 PALI 10 10
27 PRATAPGARH 7271 58168
28 RAJSAMAND 144 432
29 S.MODHPUR 12 24
30 SIKAR 35 303
31 SIROHI 0 0
32 TONK 16 4
33 UDAIPUR 78 236
Total 112891 755350
% Share of the
Area (In Production in Ranking
District Total
Ha) (MT) (Production)
Production
BARAN 41779 292453 1 40.93
JHALAWAR 27763 166578 2 23.31
Garlic
Flakes
Garlic Garlic
Pickle Powder
Products
Prepared
From Garlic Garlic
Garlic Digestive
Tablet
Churn
Garlic
Garlic Oil Paste
Before processing the bulb is broken to separate the cloves. Powder and flex are made after flaking,
drying and grinding the cloves. For making paste wet cloves are pilled and grind.
Main products of Garlic which are demanded throughout the world are Garlic Oil Capsules, Odour
Controlled Dried Garlic Products, Aged Odourless & Garlic Extract. The volatile oil is obtained by
steam distillation from the crushed bulbs or cloves of the common garlic plant Garlicin is the main
content in garlic oil. There are two general categories of garlic hard-neck and soft-neck. Garlic Powder
is obtained from peeling, drying and pulverizing of Garlic bulbs which are commonly available s
vegetable additives. Garlic powder can be manufactured by automatic flaking, spray drying &
powdering process and Semi-automatic batch type flaking drying & palavering process. The semi-
The world's largest producer of Garlic is the USA. Kyolic, Kwai, Garlicin, Pure-Gar are the major
brands of medicinal products. Producing garlic for medicinal purposes is more complex. China &
Argentina are the next important countries in this trade for low prices of products.
Garlic is the most important foreign exchange earning spicy vegetable crop, commer-cially grown in
India. Indian garlic is now exported even to Pakistan, Thailand, and USA, Nepal and Malaysia as well
as the traditional market of Bangladesh. About 21,827.16 metric tons of Garlic bulbs amounting to
Rs.7, 731.52 lakhs were exported during 2010-11(www.nhrdf/database). During the year 2006-07, the
export of dehydrated powder and flakes was to the tune of 780 tonnes worth Rs. 437 lakhs and 188
tons worth Rs. 108 lakhs respectively.
Garlic has digestive, carminative and anti-rheumatic properties. It is used in ayurvedic formulation
since ancient times for curing muscular pain, giddiness, lungs, heating intestinal ulcer, etc. Garlic is
consumed as green as well as dried in the spice form and as ingredient to flavour the various
vegetarian, non-vegetarian dishes and pick-les. Good tasty pickles, chut-neys, curry powders are
pre-pared from Garlic cloves. Garlic is also used to disguise the smell and flavour of salted meat and
fish. Dehydrated Garlic in pow-dered or granulated form is be-ing used in place of fresh bulbs in
many countries. The main advan-tages of preparation of value added products from Garlic are to
increase the storage life and also to reduce the transportation cost and earn more foreign ex-change.
Garlic is being exported either in the form of dehydrated flakes or dehydrated powder. Now-a-days
the dehydrated Garlic is gaining considerable im-portance in the world. Also, the dehydrated products
are more uniform in flavour than the stored bulbs. From India, large amounts of dehydrated products
(flakes, Garlic oil, and dehydrated Garlic powder) are exported to Japan, UK, Italy, Turkey, Ger-many
and France. Other Garlic products are peeled processed Garlic, crushed or chopped Garlic, Garlic
gran-ules and fried/roasted Garlic. Fried Garlic granules are also prepared from fresh Garlic bulbs
and having good demand in foreign market. Since the cost of fresh Garlic is widely fluctuating (Rs 5
to Rs 100 in a year), simple process technology need to be made available for preparing quality
products with long shelf life from Garlic during the season for their use in off-season. Further because
lack of available time for kitchen work, the demand for ready to use product is increasing with increase
in number working women in urban areas.
Export and value addition in the form of processed prod-ucts are the important factors for stabilizing
prices in internal markets and thereby bringing sustainability in production of certain commodities.
To regu-late the production and prices it is necessary to develop the dehydration industry in our
country. Processing industries in any commodity play an im-portant role in stabilizing prices in
domestic markets. Garlic of-fer very good scope for value addition in the form of dehy-drated flakes,
powder, granules, paste and Garlic salts. Among all these products, de-hydrated flakes and powder of
Garlic are important from export point of view.
The fresh garlic season starts from July and last till the start of October month. The harvest season
of garlic is from mid-February to mid-April as presented in the table below:
Table 18: Season availability of garlic5
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
Harvesting Sowing
8000
6000
4000
2000
0 Average of Min Price (Rs/Quintal)
Average of Max Price (Rs/Quintal)
Average of Modal Price (Rs/Quintal)
Major Markets
Garlic Bulbs
Peeling
Sorting
Washing
Drying
Packaging
To summarize, the process of Garlic Peeling & Packaging by processors in the cluster involves various
activities which may be benchmarked in terms of best practices in other locations:
Table 20: Comparative analysis of Traditional and Modern process technology of Garlic Peeling & Packaging
Farmers still use their own knowledge and Well cured garlics are stored in
1. Raw
experiences for reducing storage losses. controlled temperature and
Material
stored onions and garlic by simply tying pressure, in storage structures with
Storage
them up and hanging them in bunches in bottom ventilation and packaging
the room which are generally, non- materials i.e. stakes.
ventilated and packed in hessian cloth
bags. For long term storage, garlic is best
maintained at temperatures of -1°C
The total storage losses are comprised of to 0°C with low relative humidity
physiological loss in weight (PLW), i.e. (60-70%). Also good air flow is
moisture loss and shrinkage (30-40%), necessary to prevent the moisture
rotting (20-30%) and sprouting (20-40%). accumulation. Under, these
controlled conditions, potential
Noticeable sprouting losses are observed storage duration increased to 9
because of storage of poor quality bulbs months.
having less rest and dormant period and
also having thick neck. For bulk storage of garlic,
ventilation systems should be
designed to provide air into the
store room from the bottom at the
rate of 2 cubic feet per minutes per
cubic feet of produce. Rows of
containers should be stacked
parallel to the direction of the flow
of air and should be spaced six to
seven inches apart.
Garlic Peeling & Packaging technology has undergone major technological upheaval in terms of
innovation and technical upgradation. Following are the major advances in the technology of Garlic
Peeling & Packaging-
Garlic Sorter
The machine works on the principle of size separation based on rotary screen hole. As the screen with
bigger holes of more than 30 mm was not available, it was fabricated using punch. The MS screen
prepared was tested for grading; however, skin of about 15 - 20 % bulbs gets scratched/bruised. This
was due to inner sharp edges of screen holes. Therefore, insulated sheet (used for motor rewinding
purpose) was used, as the material has sufficient strength and flexibility to make holes and convert in
to cylindrical roller. The desired size holes were cut using SS cutter. The grader was evaluated with
the new screens and it was found quite satisfactory with
no scratch on bulb surface during grading operation.
The material is graded in to three lots i.e. < 30 mm,
between 30 - 40 mm (class I & II) and > 45 mm sizes
(extra class). Further the samples were drawn from all
the discharge outlets it was observed that misclassified
material constitutes about 7-8 % on weight basis which
is well within acceptable range (size tolerance - not
more than 10 % by weight) as per Agmark rule - 2004.
Also, Agmark rule - 2004 requires that difference of
diameter between smallest and largest bulb in a lot
should not exceed 15 mm where diameter of smallest
bulb is less than 40 mm and should not exceed 20 mm
Figure 14: Garlic grader where diameter of smallest bulb is 40 mm or more.
Overall grading efficiency was 82 %, whereas
separation efficiency for grade I, grade II and grade III was 84, 86 and 89 %, respectively. Approx.
0.2 to 0.8% Cloves gets loosened & separated during operation accumulating to 1.5 % on weight basis.
However, damage and peeling of cloves was not observed during operation. The machine was found
to have capacity of 100 kg/hr. The cost of machine was estimated as Rs. 35,000/= (inclusive motor)
with unit cost of operation as Rs. 30 per/q of Garlic resulting in almost saving of 200% cost over
conventional practice.
The cost of Garlic grading unit with bag closer and other accessories such weighing scale, etc was
estimated as Rs 50,000. The Garlic grader found economically feasible with 27.18 % return on
Dimension:L700,W600,H1300mm
Motor Power:2KW
Weight:175kg
Approximate Material: Internal made by stainless steel
Power Source:220/380 ACV or according customers supply source
Require Air Pressure:8 kg/CFM 45
Computerize control panel
Completely automatic dry-peeling operation
Energy saving unit
Automatic temperature control and in feed device
No damage to garlic clove
Features-
1. 1-year warranty for screw Air End.
The SWOT analysis of the modern technology proposed in the previous chapter is given below-
Strength Weakness
1. The use of modern technology in the pre- 1. The adoption rate of latest technology
cleaning section of garlic processing unit innovation is low among the processors
can reduce the yield loss over processing due to high capital investment involved in
by 5% to 8% setting it up.
2. The use of modern technology can enable 2. Most of the processing units have been
the processors to move into export quality fabricated and built more than 10 years
pea nuts and thus, ensure better margins. ago. The processing prefers to add only a
3. Scope for market price increases by even part of the entire technology line to their
2-3% for better quality products existing set up which does not effectively
add up to the yield as there is capacity
mismatch among the various sections of
machines.
3. Lack of awareness and knowledge
regarding the latest innovations in the
garlic processing uniting process flow is
another reason for low rate of adoption
among processors.
4. There is lack of customised R&D in the
proximity of these processing units
Opportunity Threat
1. By adopting the latest innovations 1. Technology once obsolete would require
processing unit, there is an opportunity re-investment upon upgradation to latest
for the processing to generate better technology.
cash inflows by developing higher quality 2. Technology breakdown for a longer period
graded Garlic powder may have much higher cost implications
2. Scope for technology upgradation than the labour intensive firm.
3. Increase market demand with better
quality product- with least contamination
4. Higher value realization for processing
This section of the report outlines three project profiles that could be referred by entrepreneurs to
select their most suitable option. Broadly, one small scale and one Medium scale investment option
has been showcased primarily to suit the investment capabilities of the entrepreneurs. The upcoming
sub- sections of 7.1 individually showcase the financial feasibility of these projects.
Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year
Over the base Year one.
Capacity 240
No. of Hours 8
No. of Operational Days 300
Capacity Utilization 80% 85.00% 90.00% 95.00% 95.00%
No. of operational days 240 255 270 285 285
Quantity Required (Kg) 460800 489600 518400 547200 547200
Handling Loss 13824 14688 15552 16416 16416
Quantity for processing (Kg) 446976 474912 502848 530784 530784
Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year
Over the base Year one.
No.
Sr. No. Description Rate Total Value
Required
1 1 1100000 1100000
Small Garlic Clove Grading/Sorting Machine
2 Garlic Bulb Cutter Machine 1 239,400 239400
3 Garlic Peeling Machine 1 700,000 700000
4 Generator 1 650,000 650000
5 Screw Air Compressor 1 472,500 472500
Total 3,161,900
Sr. No. Particular Unit No. of Unit Rate per unit Total Value
Number Unit
Year 1 Year 2 Year 3 Year 4 Year 5
of Unit Cost
Fixed
12
Telephone Months 2,500 30,000 31,500 33,000 34,500 36,000
12
Internet Months 3,000 36,000 37,800 39,600 41,400 43,200
Office 12
Maintenance Months 4,500 54,000 56,700 59,400 62,100 64,800
12
Electricity Charges Months 1,000 12,000 12,600 13,200 13,800 14,400
Printing & 12
Stationery Months 750 9,000 9,450 9,900 10,350 10,800
Courier, Postage 12
etc. Months 500 6,000 6,300 6,600 6,900 7,200
12
Misc. Expenses Months 1,000 12,000 12,600 13,200 13,800 14,400
Marketing
Expense 200,000 210,000 220,000 230,000 240,000
Variable Cost
7.2.7. Revenue
Value
(in Rs/
kg) Y1 Y2 Y3 Y4 Y5
Peeled Garlic-
Grade A (85%) 75 22,795,776 29,919,456 33,187,968 36,624,096 38,216,448
Peeled Garlic
Grade B (10%) 65 2,324,275 2,593,019.52 2,876,291 3,174,088 3,312,092
Peeled Garlic
Grade C (5%) 55 983,347 1,097,047 1,216,892 1,342,884 1,401,270
The suggested models and business plans are for optimal capacities which can be fine-tuned to the
scale, investment, technology needs of the entrepreneur. ABPF will further guide entrepreneurs on
statutory clearances needed for operating the business, required licenses, ways of leveraging various
government schemes/subsidies and several other aspects for effective technology adoption. In order
to increase the scale and potential adoption, ABPF shall pursue some or mix of several initiatives,
which may broadly include:
Investor road shows: ABPF will organize road shows which will comprise of meets aimed
at disseminating information regarding opportunities to invest in the state, targeting potential
investors both within & outside the state.
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