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RAJASTHAN AGRICULTURAL

COMPETITIVENESS PROJECT

Detailed Project Report on Garlic


Peeling Unit

Prepared by:

AGRI BUSINESS PROMOTION FACILITY


Contents

Page

List of Tables 2

List of Figures 3

Executive Summary 4

Chapter 1: Introduction to Spices Sub-Sector 7

Chapter 2: Technology advances and circumstances in Garlic processing 32

Chapter 3: Production and processing hubs/clusters in Rajasthan 34

Chapter 4: Manufacturing process and technology benchmarks 35

Chapter 5: Appropriate technology options 38

Chapter 6: SWOT of technology 43

Chapter 7: Indicative project profiles for Rajasthan 44

Chapter 8: Method of technology dissemination and adoption 51

References 53

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List of Tables

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

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List of Figures

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

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Executive Summary

The development objective of Rajasthan Agriculture Competitiveness Project (RACP) is to


sustainably increase agriculture productivity and farmers’ incomes in several selected locations of
Rajasthan. As a part of this approach, several Farmer Producer Companies (FPCs) are being
developed and supported under the project. Each of these companies will have primary and/or
secondary (value adding) processing infrastructure (Farmer Common Services Centers (FCSCs)),
services of which will be availed by farmers of their cluster region. Broadly, these companies will
aggregate produce of farmers, process/value add and directly sell in bulk to processors/consumers.
This, in turn, will enable farmers to realize higher remuneration for their produce. In a nutshell, the
envisaged FCSCs will have micro or small scale milling/processing and packaging units to facilitate
services to farmers.

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

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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.

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.

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The report outlines two 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.

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

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Chapter 1: Introduction to Spices Sub-
Sector

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)

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other vegetables. It does not require sophisticated storage facility and can be stored for a long
period of time (up to 12 months) after harvest.
Health Benefits: Garlic is one of the most used and well-researched medicinal herbs. Multiple studies
are carried on garlic and alicen, for its effects on the cardiovascular system, infections, respiratory
system, blood sugar and more:
 Treating respiratory infections. Its antibiotic properties render it useful for throat
infections and amygdalitis.
 Treating jock itch or fungal skin infections. Fresh garlic juice works to inhibit fungi from
growing, and has long been used as a topical treatment for them.
 Reducing blood pressure. The aromatic compounds in garlic work in the body as many
aromatics do: by dilating blood vessels, as well as opening and relaxing the circulation.
 Balancing cholesterol. Garlic has the ability to improve the function of the liver, which is
the key in moderating healthy cholesterol and triglyceride levels in the body.
 Halting arteriosclerosis. Garlic has a positive effect on halting – and sometimes even
reversing – arteriosclerosis.2
1.1. Global Scenario

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)

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presented below shows the production and yield of garlic and the continent/region wise share of
production of garlic for the year 2014:
Table 2: Global total of production and yield of garlic for the year 2014
Particulars Value
Area harvested (in Ha) 1,547,381
Production (in tons) 24,939,965
(Source: http://www.fao.org/faostat/en/#data/QC/visualize (retrieved on 18th April 2017))
Table 3: Continent wise share of production of garlic for the year 2014
Area Production Quantity (in tons)
Asia 2,288,1751
Europe 836,228
Americas 658,401
Africa 561,771
Oceania 1,814
(Source: http://www.fao.org/faostat/en/#data/QC/visualize(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

2017 5900 5900 6450 6450 7500 7500 8000 8000

2016 5900 1800 6450 2100 7500 2000 8000 2700

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2015 1800 1300 2100 1800 5358 2000 2700 1800

2014 1300 1300 1800 1800 2000 2000 2700 2700

2013 2300 1300 2800 1800 4000 2000 4200 2700

(Source: Agra-net (Public Ledger);


http://agriexchange.apeda.gov.in/int_prices/international_price.aspx(retrieved on 18th April 2017))

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

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2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
Haiti 13996 12965 11683
Kuwait 9467 9544 9858
Singapore 14154 14533 8558
Czech Republic 6440 6218 7372
Belgium 5636 7792 6988
Poland 5180 6487 6910
Lebanon 7813 7743 6686
Iraq 1628 2469 6202
Romania 4533 5301 6095
Kazakhstan 5567 2761 5770
Israel 4493 4960 5712
Jordan 5023 4929 5686
Qatar 6508 7153 5598
Oman 6385 5484 5161
Nepal 8584 5300 5140
Congo, Democratic Republic
of the 5235 3830 4986
Austria 4035 4950 4588
Spain 5405 7788 4468
Kenya 3792 3165 3917
Ghana 3379 3840
Costa Rica 3068 3614 3726
Korea, Republic of 26660 35326 3654
Dominican Republic 3544 11073 3584
Trinidad and Tobago 3574 3537 3503
Panama 3081 3105 3493
Paraguay 4169 4669 3407
Sweden 3226 3090 3294
Switzerland 3222 3226 3224
Angola 10299 2264 3057
New Zealand 2786 2803 2980
Côte d'Ivoire 2651 2313 2804
Ireland 2044 2164 2639
South Africa 2359 2020 2625
Georgia 2572 1480 2582
Ukraine 4797 3197 2504
Fiji 2083 2074 2399
Denmark 2325 2243 2389
Burkina Faso 1789 2444 2369
Guyana 2181 2388 2318
El Salvador 2034 1896 2201
Honduras 1818 1611 2182

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2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
Somalia 3072 1581 2100
Slovakia 1736 1942 1998
Cameroon 1345 1911 1963
Nicaragua 1820 1762 1949
Suriname 1650 1931
Chile 7955 1894 1819
Bahrain 2567 2649 1752
Yemen 11677 759 1724
Mauritius 1624 1834 1693
Sudan 11936 1649
Benin 1164 737 1582
Mauritania 1562 1285 1393
Bulgaria 655 998 1382
Greece 1327 1697 1351
Macao, China 1020 1130 1331
Norway 1474 1313 1328
Guinea 677 903 1290
Congo 1286
Lithuania 1223 1027 1260
Gabon 801 774 1258
Guatemala 1431 1153 1256
Slovenia 1296 1211 1223
Egypt 4894 1775 1212
Finland 1412 1229 1208
Belarus 1533 1226 1204
Jamaica 1548 1042 1180
Korea, Democratic People's
Republic of 3101 763 1092
Latvia 860 900 1086
Brunei Darussalam 1009 913 1055
Croatia 1684 1246 1043
Hungary 867 1351 1016
Uganda 785 892 992
Maldives 614 2301 833
Libya, State of 677 385 741
Gambia 447 308 713
Cabo Verde 649 684 712
Tajikistan 1236 465 676
Djibouti 1091 570 667
Comoros 621 660 661
Serbia 679 654 594
Timor-Leste 574

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2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
Tanzania, United Republic of 655 658 555
Albania 1081 1100 546
Hong Kong, China 62 73 541
Papua New Guinea 380 345 478
Bolivia, Plurinational State of 491 297 465
Kyrgyzstan 757 1837 459
Mozambique 4801 1582 456
Mongolia 308 305 444
Bosnia and Herzegovina 485 338 440
Algeria 13269 12017 436
Barbados 345 328 425
Turkey 2651 2513 415
Moldova, Republic of 540 681 395
Estonia 304 340 376
Luxembourg 344 367 366
Niger 349 719 361
Antigua and Barbuda 232 233 324
Saint Lucia 317 321 314
Samoa 407 379 303
French Polynesia 352 359 303
Uruguay 358 360 281
Lesotho 1 264
Belize 252 333 258
Montenegro 242 164 247
Malta 239 503 238
Seychelles 239 224 237
Saint Vincent and the
Grenadines 149 143 222
Togo 417 199 216
New Caledonia 211 244 211
Curaçao 105 136 206
Equatorial Guinea 111 128 200
Cyprus 216 184 197
Saint Kitts and Nevis 62 146 196
Namibia 190 263 187
Zambia 219 334 180
Botswana 205 243 171
Liberia 164
Iceland 132 145 163
Sao Tome and Principe 90 135 141
South Sudan 119 76 137
Armenia 151 66 122

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2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
Macedonia, North 221 103 121
Myanmar 15 35 117
Guinea-Bissau 116
Uzbekistan 27 100
Aruba 110 96 95
Eswatini 62 18 87
Malawi 20 23 79
Palau 31 37 79
Ethiopia 21 80 74
Azerbaijan 207 509 73
Argentina 107 123 70
Solomon Islands 17 98 63
Cambodia 860 2108 61
Turkmenistan 118 23 60
India 1919 29 56
Tonga 43 54 54
Bermuda 133 46 52
Vanuatu 41 50 49
Central African Republic 40 0 41
Afghanistan 0 0 36
Bahamas 123 135 33
Palestine, State of 4546 5661 30
Gibraltar 28 27 26
Venezuela, Bolivarian
Republic of 35 25
Zimbabwe 29 27 21
Sierra Leone 0 4 20
Greenland 18 18 18
Cook Islands 15 16 16
Ship stores and bunkers 2 6 15
Grenada 109 11
Madagascar 0 0 10
Faroe Islands 8 9 9
Tuvalu 4 9 9
Syrian Arab Republic 1350 9
United States Minor Outlying
Islands 7 6 8
Kiribati 34 7 7
Sint Maarten (Dutch part) 4 5 5
Wallis and Futuna Islands 1 5 5
Nauru 5 3 4
Burundi 5 8 3

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2015 2016 2017
Importers imported quantity, imported imported quantity,
Tons quantity, Tons Tons
Rwanda 117 20 3
Saint Helena 2 2 2
Viet Nam 15369 12833 No Quantity
China 0 126 0
Nigeria 0 No Quantity No Quantity
Niue 1 1 0
Northern Mariana Islands 0 0 0
Montserrat 2 0
Bonaire, Sint Eustatius and
Saba 0
Marshall Islands 0
Lao People's Democratic
Republic 368 481 No Quantity
Christmas Island
Cayman Islands 1 1
Andorra 8 1
French Southern and Antarctic
Territories
Cuba 1
Eritrea 26
Dominica 96 26
Free Zones 6 10
Source: International Trade Centre Statistics, Trade Map, GT Analysis (retrieved on 13th March 2018)

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Recent Trend line in International Import (In the Year 2017)
Figure 1:Top Ten Importers & Their Share in Worlds Import

Figure 2:Top Ten Importers & Their Ranking in Worlds Import

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Figure 3: Top Ten Importers in 2017 & their annual growth in value between (2013-2017)

Export Scenario
Table 7:International Export data of garlic (fresh/chilled) for the year 2015, 2016 & 2017

2015 2016 2017


Exporters Exported quantity, Exported quantity, Exported quantity,
Tons Tons Tons
World 2144864 1970524 2169489
China 1754047 1530719 1711549
Spain 149207 162623 165875
Argentina 66248 77675 83022
India 7477 21534 33736
Netherlands 31911 38247 29830
Malaysia 20719 8326 18501
Mexico 13459 15659 14408
Peru 4302 12951 13112
France 10069 14571 12607
Chile 10043 10469 11198
United Arab Emirates 11826 8001 10946
Italy 10558 10040 9141
Egypt 3914 11980 8516
United States of
America 9218 10113 5192
Uzbekistan 381 1266 3579
United Kingdom 5135 4593 3466
Myanmar 2059 418 2679
Portugal 1757 2581 2323
Saudi Arabia 2633 1827 1971

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2015 2016 2017
Exporters Exported quantity, Exported quantity, Exported quantity,
Tons Tons Tons
Kuwait 775 669 1794
Denmark 1909 1864 1738
Pakistan 317 643 1491
Belgium 1442 1833 1420
Iran, Islamic Republic
of 3966 2910 1325
Ethiopia 412 669 1250
Germany 1202 1249 1248
Greece 196 298 991
Czech Republic 1275 1307 938
South Africa 815 977 907
Turkey 25 449 872
Slovenia 1307 443 847
Niger 28 61 815
Kyrgyzstan 287 451 815
Poland 175 219 714
Singapore 1210 1750 707
Madagascar 578 683 609
Oman 253 391 581
Libya, State of 201 589 562
Russian Federation 455 357 548
Kazakhstan 0 62 547
Guatemala 323 362 511
New Zealand 545 630 501
Slovakia 15 211 431
Syrian Arab Republic 350 752 423
Hungary 800 649 408
Austria 342 310 400
Indonesia 205 348 289
Hong Kong, China 92 42 288
Georgia 144 213 285
Algeria 0 24 252
Latvia 260 270 242
Ukraine 83 195 239
Canada 79 212 236
Bulgaria 215 198 215
Serbia 327 97 199
Lithuania 345 89 162
Kenya 333 37 148
Taipei, Chinese 28 4 144
Jordan 0 58 131
Macedonia, North 165 125 111

Rajasthan Agricultural Competitiveness Project 18


2015 2016 2017
Exporters Exported quantity, Exported quantity, Exported quantity,
Tons Tons Tons
Australia 97 96 104
Côte d'Ivoire 46 46 96
Yemen 1585 90
Tajikistan 38 16 87
Costa Rica 23 12 83
Korea, Republic of 149 11 79
Belarus 411 27 71
Ireland 17 39 68
Tanzania, United
Republic of 0 0 66
Croatia 325 8 63
Haiti 0 0 46
Albania 51 48 41
Cameroon 0 2 40
Benin 11 0 39
Romania 4 80 38
Thailand 54 1227 37
Morocco 134 106 36
Lebanon 1 1 33
Tunisia 6 3 33
Sweden 13 18 27
Colombia 70 19 27
Uganda 67 40 27
Chad 53 26
Azerbaijan 0 130 20
Suriname 162 20
Moldova, Republic of 15 1 20
Afghanistan 0 0 17
Japan 0 7 16
Turkmenistan 2 16
Luxembourg 10 11 11
Fiji 9 18 11
Honduras 0 0 10
Faroe Islands 9
Angola 0 9
Bosnia and
Herzegovina 0 0 9
Brazil 1 1 9
Sri Lanka 8 49 8
Finland 0 3 8
Panama 0 0 8
Trinidad and Tobago 291 3 8
Uruguay 0 2 6

Rajasthan Agricultural Competitiveness Project 19


2015 2016 2017
Exporters Exported quantity, Exported quantity, Exported quantity,
Tons Tons Tons
Zambia 0 0 6
Estonia 2 5 5
Dominican Republic 3 2 4
Guyana 4 5 4
Sudan 0 3
Anguilla 2
Switzerland 26 17 2
Rwanda 0 0 2
Lao People's
Democratic Republic 57 57 2
Ghana 0 1
Cyprus 0 0 1
Cabo Verde 0 0 0
Barbados 0 0 0
Burundi 4 0 0
Brunei Darussalam 4 75 0
Botswana 0 0 0
Bermuda 0 0 0
Antigua and Barbuda 1 0 0
Ecuador 0 0 0
El Salvador 37 0 0
Iceland 0 0 0
Israel 0 0 0
Montenegro 1 0 0
Mozambique 0 0 0
Malawi 0 0 0
Saint Kitts and Nevis 0 0 0
Paraguay 0 0 0
Philippines 0 0 0
Norway 0 0 0
Nigeria 0 No Quantity 0
Namibia 20 0 0
Nepal 2008 12 0
United States Minor
Outlying Islands 0 0
Burkina Faso 1406 0 0
Senegal 27 0 0
Viet Nam 666 1604 No Quantity
Eswatini 0 0 0
Somalia 29 80
Turks and Caicos
Islands 1
New Caledonia 0 28

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2015 2016 2017
Exporters Exported quantity, Exported quantity, Exported quantity,
Tons Tons Tons
Niue 3
Korea, Democratic
People's Republic of 0
Dominica
Gibraltar
Palestine, State of 575 74
Gabon 9 3
Bahrain 16 0
Bangladesh 7
Christmas Island 27
Source: International Trade Centre Statistics, Trade Map, GT Analysis (retrieved on 13th March 2018)

Figure 4:Top Ten Exporters & Their Share in Worlds Exports

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Figure 5:Top Ten Exporters & Their Ranking in Worlds Export:

Figure 6:Top Ten Exporters in 2017 & their annual growth in value between (2013-2017)

Rajasthan Agricultural Competitiveness Project 22


1.2. Indian Scenario

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

2013-14 2014-15 2015-16


Sr
State Production Share(%) Production Share(%) Production Share(%)
No.
Madhya
1 270 21.57 424.5 29.78 424.5 26.25
Pradesh
2 Rajasthan 218.42 17.45 172.04 12.07 377.49 23.34
3 Gujarat 250 19.97 318.2 22.32 318.2 19.67
4 Uttar Pradesh 218.18 17.43 196.13 13.76 193.62 11.97
5 Assam 69.42 5.55 70.17 4.92 76.95 4.76
6 Punjab 45 3.59 65.6 4.6 73.74 4.56
7 West Bengal 40 3.2 40 2.81 36.07 2.23
8 Haryana 35.83 2.86 35.83 2.51 35.83 2.22
9 Orissa 35.5 2.84 35.5 2.49 35.5 2.19
10 Maharashtra 40 3.2 40 2.81 12.69 0.78
Himachal
11 6.14 0.49 6.14 0.43 9.35 0.58
Pradesh
12 Karnataka 8.42 0.67 5.47 0.38 5.19 0.32
13 Bihar 4 0.32 4 0.28 4 0.25
14 Chhattisgarh 3.2 0.26 3.4 0.24 3.6 0.22
15 Nagaland 0.15 0.01 0.15 0.01 2.89 0.18
16 Tamil Nadu 2.59 0.21 2.89 0.2 2.72 0.17
17 Uttarakhand 1.54 0.12 1.54 0.11 1.93 0.12
18 Meghalaya 1.11 0.09 1.11 0.08 1.11 0.07
19 Telangana 1.5 0.12 1.68 0.12 1.01 0.06
Jammu &
20 0.46 0.04 0.46 0.03 0.56 0.03
Kashmir
21 Kerala 0.4 0.03 0.63 0.04 0.37 0.02
22 Mizoram 0.01 0 0.01 0 0.01 0
Arunachal
23 0.01 0 0.01 0 0.01 0
Pradesh
Page Total 1,251.88 100 1,425.46 100 1,617.34 100
Source: National Horticulture Board (NHB)
Table 9: Indian production and yield of garlic in the year 2014
Element Value
Area harvested (in ha) 231,000
Production (in tons) 1,252,000
Source: http://www.fao.org/faostat/en/#data/QC/visualize(retrieved on 18th April 2017)

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

Rajasthan Agricultural Competitiveness Project 23


production has been increasing throughout. On the contrary, the yield, hectogram per hectare, has
seen an upward trend but by acute figures during the 5 years. It can be calculated that the increase in
production was on account of increase in harvested area. The detailed numbers have been presented
in the table below:
Table 10: Indian production, yield and area harvested data of garlic for 2009 to 2014
Year Production (in tons) Yield (in hg/ha) Area Harvested (in ha)
2009 831,100 50,003 166,210
2010 833,970 50,587 164,860
2011 1,057,800 52,732 200,600
2012 1,228,000 50,744 242,000
2013 1,259,000 50,766 248,000
2014 1,252,000 54,199 231,000
Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017)

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

Source: DGCIS Annual


Import;http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07032000 (retrieved
on 18th April 2017)

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

Source: DGCIS Annual


Import;http://agriexchange.apeda.gov.in/importtoindia/Product_description.aspx?hscode=07129040 (retrieved
on 18th April 2017)

Rajasthan Agricultural Competitiveness Project 24


Import of Garlic Paste
In regard to the import of garlic paste during the period of February 2014 to October 2016, it is
observed that there were few imports in the months of January 2015 and February 2015 and towards
the end of the year 2016. Apart from these months, there were very little or no imports. The highest
import during this period was in July 2016 a value of USD 10,465. The graph presented below gives
details of the imports of garlic paste in terms of the value of imports.

Figure 7: Import of garlic paste in terms of value (in USD)

Total Value (in USD)


12000
10000
8000
6000
4000
2000
0

(Source: https://www.zauba.com/importanalysis-garlic+paste-report.html(retrieved on 18th April 2017))

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)

Source: https://www.zauba.com/importanalysis-garlic+paste-report.html (retrieved on 18th April 2017)

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.

Rajasthan Agricultural Competitiveness Project 25


Import of Garlic Oil
The total quantity of garlic oil imported during the period January 2014 to November 2016 was 69,036
kg. The highest quantity of import was in November 2014 when 13,628 kg was imported. The total
value of imports of garlic oil during the period was USD 2,272,493. The highest value of import was
unexpectedly in May 2016 when the value was USD 336,992 as during that period the quantity of
imports was stable at a low level. Regarding the average price per unit during the period, it was USD
32.92 and the highest average price was reported in Jun 2016 when the average price per unit was
USD 15,225.3
Import of Garlic Powder
The total quantity of garlic powder imported during the period January 2014 to November 2016 was
325,651 kg. The highest quantity of import was in November 2016 when 82,523 kg was imported.
The total value of imports of garlic powder during the period was USD 899,492. The highest value of
import was in May 2016 when the value was USD 96,280. Regarding the average price per unit during
the period, it was USD 2.76 and the highest average price was reported in July 2015 when the average
price per unit was USD 38.72.4
Exports of Garlic
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.
Table 13: Export of garlic value and quantity from 2009 to 2013
Year Value (in 1000 USD) Quantity (in tons)
2009 9202 17781
2010 19214 24665
2011 2615 2784
2012 10386 25436
2013 11340 29461
Source: http://www.fao.org/faostat/en/#compare(retrieved on 18th April 2017)

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

Malaysia 2,967.00 686.41 2,037.00 533.66 5,123.02 2,212.77

Pakistan 7,234.52 1,933.56 3,772.70 1,056.82 3,444.99 1,763.56

Sri Lanka 0 0 0 0 1,221.86 939.91

Thailand 3,122.00 738.08 1,208.00 300.46 1,913.00 754.78

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)

Rajasthan Agricultural Competitiveness Project 26


Vietnam Social
0 0 27 7.99 1,339.00 553.01
Republic

Indonesia 140 25.95 0 0 1,588.00 490.52

Philippines 0 0 0 0 400 214.69

Nepal 36.11 15.83 126.12 56.21 119.01 105.12

Sudan 0 0 0 0 110 90.65

United States 3.62 3.32 60 39.36 56.34 55.66

Oman 27.1 31.18 82.08 42.82 39.34 42.15

Singapore 0 0 0.01 0 42 30.6

Saudi Arabia 0 0 0 0 32.76 23.21

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

United Arab Emirates 0 0 18.5 11.59 365 170.61

Kazakhstan 26 19.67 19 15.84 43 57.27


Nepal 147 57.66 81.4 46.28 47.7 37.35
Poland 10 7.15 0 0 43.2 37.19
China Ma 0 0 194 51.33 25 25.88
Turkey 14 11.1 26 17.52 16 20.91
Serbia 15 7.28 15 9.63 16 20.29
Ukraine 11.3 6.16 12 9.76 19 19.13
Netherland 0 0 0 0 25 19.09
Bulgaria 0 0 0 0 13.1 18.2
Jordan 0 0 0 0 28 12.81
Iraq 0 0 0 0 38 12.69
Kuwait 3 1.77 20 11.34 20 12.3
Libya 0 0 0 0 14 10.66

Rajasthan Agricultural Competitiveness Project 27


Export of Garlic Oil
The total quantity of garlic powder exported in the year 2017 amounts to 124,241 Kg and 113,322 Kg
in the Year 2018. Out of the total quantity exported top 10 export destinations in terms of quantities
& values in given below.
Figure 9:Top Ten Export Destination for HSN 33012947, Including Garlic Oil

Figure 10:Top Ten Export Destination for HSN 33012947, Including Garlic Oil , (Values)

Export of Garlic Powder


The total quantity of garlic powder exported in the year 2017 amounts to 52,273,385 Kg and
69,547,676 Kg in the Year 2018. Out of the total quantity exported top 10 export destinations in
terms of quantities & values in given below.

Rajasthan Agricultural Competitiveness Project 28


Figure 11: Top Ten Export Destination for HSN 21069099, Including Garlic Powder

Figure 12:Top Ten Export Destination for HSN 21069099, Including Garlic Powder (Values)

1.3. State Scenario


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.
Substantiating

Rajasthan Agricultural Competitiveness Project 29


Table 16: Area & Production of Garlic in the State Of Rajasthan (2017-18)

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

Table 17: Garlic Production in Cluster-Districts (2017-18)

% 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

Rajasthan Agricultural Competitiveness Project 30


% Share of the
Area (In Production in Ranking
District Total
Ha) (MT) (Production)
Production
KOTA 22157 144021 3 20.15
PRATAPGARH 7271 58168 4 8.14
CHITTOR 6610 33921 5 4.75
BUNDI 3345 16896 6 2.36
NAGAUR 105 1302 7 0.18
GANGANGAR 85 1153 8 0.16
JAIPUR 24 29 9 0.004
S.MODHPUR 12 24 10 0.003
BIKANER 7 8 11 0.001
AJMER 2 6 12 0.001
DHOLPUR 1 5 13 0.001
TONK 16 4 14 0.001
ALWAR 1 2 15 0.000
BANSWARA 0 0 NA NA
JAISALMER 0 0 NA NA
TOTAL 109178 714570 100.00

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Chapter 2: Technology advances and
circumstances in Garlic processing

2.1. Global scenario


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. Following products may be
prepared from the processing of the Garlic:

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-

Rajasthan Agricultural Competitiveness Project 32


automatic batch type process is suitable for small scale sector. To set up Plant to produce one ton of
garlic powder per month will need investment of about one processing unition Indian Rupees.

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.

2.2. National scenario


India is one of the leading Garlic (Allium sativam) producing countries. The area under cultivation
and production of garlic in India (2010-11) is 200.70 thousand ha and 1061.85 thousand tons. Madhya
Pradesh, Gujarat, Orissa, Rajasthan, Karnataka, Tamil Nadu, Maharashtra, Bihar and UP are the major
Garlic producing states. Study revealed that the area and production of garlic is increasing in most of
the states.

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.

Rajasthan Agricultural Competitiveness Project 33


Chapter 3: Production and processing
hubs/clusters in Rajasthan

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

In most areas, it is grown in two seasons.


1st season: June – July
2nd season: October – November
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.
Table 19: Market arrivals and Prices of Garlic in Rajasthan for the period 1 April 2016 to 31 March 2017

Price Arrivals in Mandi


12000
10000
Price in Rs.

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

(Source: Indian spices (retrieved on 19th April 2017))

Rajasthan Agricultural Competitiveness Project 34


Chapter 4: Manufacturing process and
technology benchmarks

4.1. Manufacturing process in a Garlic Peeling & Packaging


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.

Figure 13: Steps Involved In Garlic Peeling

Garlic Bulbs

Primary Grading & Clove Seperation

Peeling

Sorting

Washing

Drying

Packaging

Rajasthan Agricultural Competitiveness Project 35


4.2. Benchmarking the Garlic Peeling & Packaging process

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

Sr. Process of Traditional method Modern Method


No. Garlic
processing
uniting

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.

2 Garlic clove The garlic clusters of Kota region


Separation use machines for breaking the bulb
and separating the cloves

3 Garlic In modern method, automated/


Traditionally, it has been a manual process
peeling semi-automated machines are
where the outer skin of the garlic is
being used top peel the garlic
removed with little or no mechanized
clove.
intervention.
 Dry Garlic Peel
This process leads to uneven abrasion of Remover /De-
the garlic cloves leaving marks on the skinner
same. The clove may even loose luster and
 Fresh Garlic Clove
color due to the same reducing the
customer demand and its economic value. Peeler

Rajasthan Agricultural Competitiveness Project 36


The cost of skin removal through
Lye peeling requires caustic soda and conventional manual practice is
supply of water and steam. In this method, about Rs. 200/q, hence machine
garlic is immersed in hot caustic soda results into about 300% saving in
solution in the lye peeler itself followed by cost of operation.
vigorous water rinse to remove the
chemicals adhered to the skin. The cloves
are then neutralized in acid bath and
trimmed to give perfect finish.

Another traditional method of peeling


involves the submergence of cloves in
warm water for 5-10 minutes. This makes
the outer skin soft and can be easily peeled
by hand.

In the oven method of peeling, garlic is


placed in oven for 5-10 seconds. the root is
then cut and skin slides off easily.

Flame peeling is another tedious method in


which garlic is brought into direct contact
with the live flame. High temperature burns
the outer skin and can be easily removed.

4 Garlic clove Currently, automated/ semi-


Traditionally, it is done through the eye &
sorting automated color sorting machines
hand sorting method where the skilled
are available which are capable of
manual labors segregate and sort the garlic
sorting the garlic cloves on the
cloves of various sizes and colors, in
basis of their colour, shape & size.
different lots.
Such sorting machines can have
This process, however, does not ensure efficiency up to 85% as well as they
the uniform quality maintenance in terms of save time & cost of labor required
size, shape and color of garlic cloves. in the traditional method.

Rajasthan Agricultural Competitiveness Project 37


Chapter 5: Appropriate technology
options

5.1. Innovations in Garlic Peeling & Packaging Process

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

Rajasthan Agricultural Competitiveness Project 38


investment, payback period as 0.36 and 1.78 year for the machine and project cost, respectively and
annual net profit of Rs 1.40 lac. Assuming yearly mean wholesale price of Garlic as Rs 20/kg with
cost for grade I, II and III as 25, 20 and 15 Rs/kg.
 Garlic Bulb Breaker: Bulb breaking i.e. separation of individual cloves from Garlic bulbs is
the first and foremost unit operation in
processing of Garlic. Garlic bulb breaker
has been developed to separation
individual cloves from bulbs. The
machine consists of a rotating beater with
cushioned battens, a concave and an
aspirator. The cloves are separated
because of the beating action of battens
and friction between bulb and concave.
The machine has generated lot of interest
in Garlic cultivation belt of MP&
Rajasthan for separating individual cloves
for seed purposes. The machine has been
demonstrated & field evaluated at many
Figure 15: Garlic bulb breaker locations. Bulb breaking i.e. separation of
individual cloves from garlic bulbs is the
first and foremost unit operation in processing of garlic. The machine was refined to
accommodate improved bold varieties also. The machine consists of a hollow cylinder with
cushioned battens, a concave and an aspirator. The cloves are separated because of the
beating action of battens and friction between bulb and concave. It requires 0.5 hp single
phase electric motor. The machine has generated lot of interest in garlic cultivation belt of
MP& Rajasthan for separating individual cloves for seed purposes. The machine has been
demonstrated & field evaluated at many locations. Bulb breaking i.e. separation of individual
cloves from garlic bulbs is the first and foremost unit operation in processing of garlic. The
machine was refined to accommodate improved bold varieties also. The machine consists of
a hollow cylinder with cushioned battens, a concave and an aspirator. The cloves are separated
because of the beating action of battens and friction between bulb and concave. It requires
0.5 hp single phase electric motor. The machine has generated lot of interest in garlic
cultivation belt of MP& Rajasthan for separating individual cloves for seed purposes. The
machine has been demonstrated & field evaluated at many locations. Bulb breaking i.e.
separation of individual cloves from garlic bulbs is the first and foremost unit operation in
processing of garlic. The machine was refined to accommodate improved bold varieties also.
The machine consists of a hollow cylinder with cushioned battens, a concave and an aspirator.
The cloves are separated because of the beating action of battens and friction between bulb
and concave. It requires 0.5 hp single phase electric motor. The machine has generated lot of
interest in garlic cultivation belt of MP& Rajasthan for separating individual cloves for seed
purposes. The machine has been demonstrated & field evaluated at many locations. Bulb
breaking i.e. separation of individual cloves from garlic bulbs is the first and foremost unit
operation in processing of garlic. The machine was refined to accommodate improved bold
varieties also. The machine consists of a hollow cylinder with cushioned battens, a concave
and an aspirator. The cloves are separated because of the beating action of battens and friction
between bulb and concave. It requires 0.5 hp single phase electric motor. The machine has
generated lot of interest in garlic cultivation belt of MP& Rajasthan for separating individual
cloves for seed purposes. The machine has been demonstrated & field evaluated at many

Rajasthan Agricultural Competitiveness Project 39


locations. It is available in two models: (i) hand operated (50 kg/h) (ii) power operated (800
kg/h, 0.5 hp single phase motor). The light stem, root and peels are then winnowed to
collected clean cloves. In power-operated model, an aspirator is provided to remove the
lighter substance. This machine has an additional utility as the separated individual cloves
could also be used as seed material. The cost of bulb breaking through machine comes to Rs
2.50/qtl in comparison to Rs 26.75 through manual bulb breaking.

 Dry Garlic Peel Remover /De-skinner


The machine works on principal of abrasion and friction during movement of material. The
dehydrated flakes (with peel attached) were fed into machine through hopper. The feed control flap
was kept full open tom have proper feeding. As the scrubber rotates in the barrel with forward material
movement, the peel gets detached from dry material and the mass comes out through discharge spout.
The speed of scrubber is kept 160 rpm so as to get de-skinning properly. The aspirator speed is 1440
rpm which helps in sucking out the skinny material. The clearance between the scrubber edge and
barrel is 8 mm. The discharge opening can be
controlled for changing degree of de-skinning. With the
restricted discharge opening the de-skinning is better;
however, it results into more breakage of flakes and
powder making. Therefore, discharge opening was kept
full open so that no loss of material occurs, however it
was observed that more than one pass is required to get
the de-skinning to a satisfactorily level. About 80-85 %
de-skinning was observed in two passes. The overall
capacity of machine was worked out as 150 kg/hr.

Fresh Garlic Clove Peeler


The thin papery skin tightly adhered on Garlic clove is to be removed for further processing for
pickling, paste formulation, etc. Based on experience various local methods have been used for
facilitating peeling of Garlic. In one method, the cloves are dressed with edible oil (2-3%) & salt (1-
2%) and then conditioned in open sun (4-5hr) to loosen the skin. In another method, the oil dressed
cloves are heat up and stirred in wide pan for a short duration and then peeled manually through
rubbing against gunny bag or palm. Though, these local methods alleviate the drudgery of hand
peeling, however the hygienic conditions are not maintained, which are must for retaining the quality
of products for export as well as for local market. An efficient peeling device is therefore required to
gently peel off the skin from Garlic clove without any adverse effect on its shape, structure & aroma.
Garlic peeling machine has been developed using the novel concept of gentle impact of compressed
air. The developed system consists of a cylindrical peeling chamber with an inlet for feeding cloves
and an outlet at the bottom for discharge of peeled clove. The chamber has an opening for entry of
compressed air. About 500-750 g conditioned cloves are filled in the batch prototype at a time and
compressed air is injected for 45 to 60 seconds. A Garlic bulb breaking machine for separating
individual cloves, a dryer for conditioning the cloves and an air compressor for supplying compressed
air to the peeler are essential pre-requisites for the peeling system. The developed system consists of

Rajasthan Agricultural Competitiveness Project 40


a cylindrical peeling chamber with an inlet for feeding cloves and an outlet at the bottom for discharge
of peeled clove. The chamber has an opening for entry of compressed air. About 500-750 g
conditioned cloves are filled in the batch prototype at a time and compressed air is injected for 45 to
60 seconds. A garlic bulb breaking machine for separating individual cloves, a dryer for conditioning
the cloves and an air compressor for supplying compressed air to the peeler are essential pre-requisites
for the peeling system.
The study indicated that 96-98% peeling efficiency could be achieved.
Appropriate technology options
5.1.1. Garlic Bulb Cutter Machine
 Capacity:300 kg/Per hr
 Motor Power:2HP
 Weight:150kg
 Approximate Material: Internal made by MS
 Completely automatic
 Power Source: 220 Single or Three phase
 No damage to garlic clove
 Four type grading available.
5.1.2. Dry Garlic Peeling machine
 Capacity:120 kg/hr

 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

5.1.3. Screw air Compressor


 Capacity: 20HP screw compressor
 RPM Min – 2900
 CFM – 110 CFM
 Dimension:L940 x W705 x H1120 mm
Motor Power:15KW
 Weight:350kg
 Noise (db)-62+-2
 Automatic Electric control panel
 Completely automatic cut off system
 Energy saving unit
 High speed air compressor system.

Features-
1. 1-year warranty for screw Air End.

Rajasthan Agricultural Competitiveness Project 41


2. Oil cooler is designed at 45 C ambient Temperature which is suitable for Indian Industrial
Circumstances
3. All parts are designed with universal design code/standard.
4. Consumable cost is low up to 35% as compare to others.
5. Thermostatically operated fan motor.

5.1.4. Garlic clove sorter


1. Contains no abrasive substances or elements.
2. Finishing is extremely seamless.
3. High Functionality machine.
4. Automatic Cleaning System – For consistent sorting quality.
5. Cost Effective and great value for money.
6. For higher accuracy and reliability.
7. Capacity is 100-200 Kg per Hour
8. Requires power of 2-4 HP depending on design and make.

Rajasthan Agricultural Competitiveness Project 42


Chapter 6: SWOT of technology

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

Rajasthan Agricultural Competitiveness Project 43


Chapter 7: Indicative project profiles for
Rajasthan

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.

7.1. Project Profile 1: Small Scale Unit

7.1.1. Critical Assumptions


Capacity : Per Hour (in
Kg) 120
No. of Working Hours Per
Day 8
Total No. of Working
Days Per Year 300
Y1 Year 2 Year 3 Year 4 Year 5
Actual Operating
Capacity 65% 70% 75% 80% 85%
Actual No. of operational
days 195 210 225 240 255

Quantity Required (Kg) 187,200 201,600 216,000 230,400 244,800

Handling Loss (3%) 5,616 6,048 6,480 6,912 7,344


Quantity for processing
(Kg) 181,584 195,552 209,520 223,488 237,456
Peeled Garlic (80% of
Total Quantity
Processed) 145,267.20 156,441.60 167,616 178,790 189,965
 Raw Material Procurement Price: Rs 40/Kg in Year One with 5% Increase Year On Year
Over the base Year one.

 Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year
Over the base Year one.

7.1.2. Project Cost


# Particular Total Value (Rs.)
1 Land and Building 800,000
2 Machinery and Equipment 1,647,500
3 Furniture and Fixture 20,000

Rajasthan Agricultural Competitiveness Project 44


# Particular Total Value (Rs.)
4 IT & Infrastructure 50,000
5 P&P Expenses 39,000
6 Working Capital margin 623,340
Total 3,179,840

7.1.3. Means of Finance


Sr. No. Particular Total Value (Rs.)
1 Own Contribution 794,960
2 Bank Loan 2,384,880
Total 3179840

7.1.4. Machinery & Equipment’s

No. Total Value


Sr. No. Description Rate
Required (Rs.)

1 Garlic Bulb Cutter Machine 1 120,000 126000


2 Garlic Peeling Machine 1 380,000 399000
3 Generator 1 600,000 650000
4 Screw Air Compressor 1 450,000 472500
Total (Inclusive of GST) 1,647,500

7.1.5. Land and Building


Total Value
Sr. No. Particular Unit No. of Unit Rate per unit
(Rs.)

1 Building Sq. ft. 1000 800 800000


Total 800000

7.1.6. Fixed cost & Variable Cost


Number Unit
of Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5
Fixed
12
Telephone Months 1,200 14,400 15,120 15,840 16,560 17,280
12
Internet Months 1,000 12,000 12,600 13,200 13,800 14,400
12
Office Maintenance Months 1,500 18,000 18,900 19,800 20,700 21,600
12
Electricity Charges Months 1,000 12,000 12,600 13,200 13,800 14,400
12
Printing & Stationery Months 750 9,000 9,450 9,900 10,350 10,800
12
Courier, Postage 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
5% of
Insurance P&M 82,375 86,494 95,143 109,415 131,298

Rajasthan Agricultural Competitiveness Project 45


Number Unit
of Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5
20,00
Audit Expense One time 0 20,000 21,000 22,000 23,000 24,000
Supervisor 1 7,000 84,000 88,200 92,400 96,600 100,800
Sub-Total 269,775 283,264 301,283 324,925 356,178
Variable Cost
7,488,0 8,467,2 9,504,00 10,598,4 11,750,4
Raw material - Garlic 40 00 00 0 00 00
Labor cost- 3 300 175,500 198,450 222,750 248,400 275,400
Transportation-inward 500 93,600 105,840 118,800 132,480 146,880
Transportation-outward 500 72,634 82,132 92,189 102,804 113,979
Electricity cost (Rs.) 147 Units 7 201,059 227,351 255,190 284,576 315,508
Packing Material-Poly
Films 0.5 72,634 82,132 92,189 102,804 113,979
8,103,4 9,163,1 10,285,1 11,469,4 12,716,1
Sub-Total 26 05 18 65 46
8,373,2 9,446,3 10,586,4 11,794,3 13,072,3
Total 01 69 01 89 23

7.1.7. Revenue Schedule


Average
Selling
Price Per
Kg (In Rs) Y1 Y2 Y3 Y4 Y5
Peeled 10,168,704 11,498,458 12,906,432 14,392,627 15,957,043
Garlic 70
Total 10,168,704 11,498,458 12,906,432 14,392,627 15,957,043

7.1.8. Profit & Loss Statement


Particulars Y1 Y2 Y3 Y4 Y5

Peeled Garlic 10,168,704 11,498,458 12,906,432 14,392,627 15,957,043

Total Revenue 10,168,704 11,498,458 12,906,432 14,392,627 15,957,043

Fixed Cost 269,775 283,264 301,283 324,925 356,178

Variable Cost 8,103,426 9,163,105 10,285,118 11,469,465 12,716,146


Total Operational
Expenses 8,373,201 9,446,369 10,586,401 11,794,389 13,072,323
Earnings Before Interest,
Depreciation, Taxes and
Amortization (EBITDA) 1,795,503 2,052,089 2,320,031 2,598,238 2,884,720

Depreciation 211,750 211,750 211,750 211,750 211,750

Amortization 7,800 7,800 7,800 7,800 7,800


Earnings Before Interest
and Taxes (EBIT) 1,575,953 1,832,539 2,100,481 2,378,688 2,665,170

Interest Expense 403,536 360,368 310,980 254,565 190,208


Earnings Before Taxes
(EBT) 1,172,417 1,472,171 1,789,501 2,124,123 2,474,962

Tax 316,738 428,912 541,208 655,824 773,471

Rajasthan Agricultural Competitiveness Project 46


Earnings After Taxes (EAT) 855,679 1,043,259 1,248,292 1,468,298 1,701,491

7.1.9. Financial Indicators


1 Average DSCR 3.44
2 IRR 32.50%
3 Payback period 2.63 Years

7.2. Project Profile 2: Medium Scale Unit

7.2.1. Critical Assumptions

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

Peeled Garlic 357581 379930 402278.4 424627.2 424627.2


 Raw Material Procurement Price: Rs 40/Kg in Year One with 5% Increase Year On Year
Over the base Year one.

 Selling Price of Peeled Garlic at Rs 70/Kg in Year 0ne with 5% Increase Year On Year
Over the base Year one.

7.2.2. Project Cost

Sr. No. Particular Total Value

1 Land and Building 1200000


2 Machinery and Equipment 3161900
3 Furniture and Fixture 50000
4 IT & Infrastructure 50000
5 P&P Expenses 39000
6 Working Capital Margin 1364488
Total 5,865,388

Rajasthan Agricultural Competitiveness Project 47


7.2.3. Means of Finance
Sr. No. Particular Amount
1 Own Contribution 1,466,347
2 Bank Finance - Long Term Loan 4,399,041
Total 5,865,388

7.2.4. Machinery & Equipment’s

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

7.2.5. Land and Building

Sr. No. Particular Unit No. of Unit Rate per unit Total Value

1 Building Sq. ft. 1500 800 1200000


Total 1200000

7.2.6. Fixed cost & Variable Cost

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

Branding Expense 75,000 78,750 82,500 86,250 90,000


35,00
Audit Expense Onetime 0 35,000 36,750 38,500 40,250 42,000

Rajasthan Agricultural Competitiveness Project 48


Insurance ( 1% of
Assets value) 5% 158,095 166,000 173,905 181,809 189,714
25,00
Manager 1 0 300,000 315,000 330,000 345,000 360,000
15,00
Supervisor 1 0 180,000 189,000 198,000 207,000 216,000
12,00
Process In charge 2 0 288,000 302,400 316,800 331,200 345,600

Sub-Total 1,395,095 1,464,850 1,534,605 1,604,359 1,674,114

Variable Cost

Raw material - 18,432,00 20,563,20 22,809,60 25,171,20 26,265,60


Garlic 40 0 0 0 0 0
5 Man-
Labor cost- days 300 360,000 401,625 445,500 491,625 513,000
Transportation-
inward 1000 240,000 267,750 297,000 327,750 342,000
Transportation-
outward 2000 480,000 535,500 594,000 655,500 684,000
Electricity cost
(Rs.) 444 Unit 7 745,920 832,167 923,076 1,018,647 1,062,936
Packing Material-
Poly Films 0.5 178,790 199,463 221,253 244,161 254,776

20,436,71 22,799,70 25,290,42 27,908,88 29,122,31


Sub-Total 0 5 9 3 2

21,831,80 24,264,55 26,825,03 29,513,24 30,796,42


Total 5 5 4 2 6

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

Total 26,103,398 33,609,522 37,281,151 41,141,068 42,929,810

7.2.8. Profit & Loss


Particulars Y1 Y2 Y3 Y4 Y5

Peeled Garlic-Grade A (85%) 26,103,398 29,919,456 33,187,968 36,624,096 38,216,448

Total Revenue 26,103,398 29,919,456 33,187,968 36,624,096 38,216,448

Fixed Cost 1,395,095 1,464,850 1,534,605 1,604,359 1,674,114

Variable Cost 20,436,710 22,799,705 25,290,429 27,908,883 29,122,312

Total Operational Expenses 21,831,805 24,264,555 26,825,034 29,513,242 30,796,426

Rajasthan Agricultural Competitiveness Project 49


Earning Before Interest,
Depreciation, Taxes and
Amortization (EBITDA) 4,271,593 5,654,901 6,362,934 7,110,854 7,420,022

Depreciation 386,190 386,190 386,190 386,190 386,190

Amortization 7,800 7,800 7,800 7,800 7,800

Earnings Before Interest and


Taxes (EBIT) 3,877,603 5,260,911 5,968,944 6,716,864 7,026,032

Interest Expense 776,548 602,624 499,983 382,785 249,795

Earnings Before Taxes (EBT) 3,101,055 4,658,287 5,468,962 6,334,079 6,776,237

Tax 883,109 1,395,702 1,670,587 1,957,810 2,111,109

Earnings After Taxes (EAT) 2,217,945 3,262,585 3,798,375 4,376,269 4,665,128

7.2.9. Financial Indicators


1 Average DSCR
2 IRR 23.53 %
3 Payback period 2.04 Years

Rajasthan Agricultural Competitiveness Project 50


Chapter 8: Method of technology
dissemination and adoption

Method of dissemination of suggested technology and models


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 subject
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

Scale of adoption in the clusters and state, through ABPF support


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: 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.

Rajasthan Agricultural Competitiveness Project 51


 B2B Meets: ABPF will hold Business to Business Meetings to forging partnerships amongst
entrepreneurs with complimentary offerings.
 Establishing Mentor Network: ABPF will also prepare a list of well-established
entrepreneurs/ subject matter experts who could mentor the emerging entrepreneurs-
advising them on technical and commercial aspects of running a business.
 Mentor-Mentee Workshops: ABPF will hold a series of workshop wherein the potential
entrepreneurs and their mentors would interact and exchange ideas on establishing,
developing and running new businesses. Based on the interest and seriousness of the
entrepreneur, ABPF will also facilitate one on one discussion with the mentors. ABPF will
also invite commercial banks to these workshops and investor meets, so as to establish a
rapport between the entrepreneur and the banks. By building a good working relationship
with the banks over a period of time, ABPF will be able to recommend viable business
projects for accessing commercial credit from these banks.
 Facilitating Access to Finance: ABPF will guide and facilitate entrepreneurs to explore
possible sources of funding including ways of leveraging various government
schemes/subsidies. ABPF will facilitate one on one dedicated meetings between
entrepreneurs and commercial banks in order to facilitate access to finance (both investment
as well as working capital).
 Creating a robust Knowledge Base: ABPF will prepare an operational knowledge base that
could be used by an entrepreneur throughout the life cycle of the enterprise. The knowledge
base would comprise of fundamentals of business management including objectives,
operations management, organizational behaviour, human resources management, structure
of the organization, products and markets, operations finance including major expenditures,
sources of financing across the stages of the life cycle of the enterprise (from start up to
mature business and expansion). Knowledge base would also cover fundamentals of
accounting, sales, marketing, promotion, branding, distribution, logistics, human resource
management etc. ABPF will also establish a business performance tracking system of the
enterprises supported by ABPF.
 Review of Business Plans for funding through RACP: ABPF will review the business
plans and provide its recommendations on applications.

Rajasthan Agricultural Competitiveness Project 52


References

 https://www.plantvillage.org/en/topics/garlic (retrieved on 18th April 2017)


 http://www.vegetablefacts.net/vegetable-history/history-of-garlic/ (retrieved on 18th April
2017)
 http://agriculturenigeria.com/farming-production/horticulture/garlic (retrieved on 18th
April 2017)
 https://www.herbazest.com/herbs/garlic(retrieved on 18th April 2017)
 http://www.thehindubusinessline.com/economy/agri-business/static-productivity-poor-
postharvest-technology-pound-garlic/article2506671.ece (retrieved on 18th April 2017)
 https://www.zauba.com/importanalysis-garlic+oil-report.html (retrieved on 18th April
2017)
 https://www.zauba.com/importanalysis-garlic+powder-report.html (retrieved on 18th
April 2017)
 https://www.zauba.com/exportanalysis-garlic+oil-report.html (retrieved on 18th April
2017)
 https://www.zauba.com/exportanalysis-garlic+powder-report.html (retrieved on 18th April
2017)
 https://www.researchgate.net/publication/303805105_An_Economic_Analysis_of_Garlic
_Production_in_Baran_District_of_Rajasthan (retrieved on 18th April 2017)
 Trade Map.Org
 National Horticulture Board

Rajasthan Agricultural Competitiveness Project 53


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