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“Chicory Cooperative”

Presented by:
Alpesh Dalwadi-29003
Amit Anand-29005
Kamal Pandey-29020
Rijo P-29026
Rohan Jain-29029
Vivek Kunj-29037
v Adulterant/ additive in coffee
v Agro climatic conditions (Gujarat good, Kheda better)
v Inulin derived from chicory used in Ice-cream/Chewing
gum/ Pharmacy
v Stand alone beverage (negligible)
v Root like carrot
Process flow
Seeds : provided by Company (Brooke Bond / Pioneer
Chicory Ind.). There is agreement between Farmer and
Co. Free Seeds provides by Company and also price of
purchase also fixed during agreement
Sowing : Sowing is done by farmer. It start from the Mid
November. Total crop cycle is of 5 ½ to 6 months. Total
irrigation required is 6-7 depending up on the weather
Harvesting : Harvesting is totally manual process. It is
mainly done by Bharvad community near by town. They do
this job free of cost. In turn they get leaves of plant for their
Cutting : The chicory roots are then transported to Near
by Chicory cutting factory where chicory first washed and
then cuts in to very small peaces. (5mm cube)
Process flow

Sun Drying : Sun drying is carried out after cuts

the chicory in to small peaces. Then it is ready for
treading in the market or Co takes at their factory
for further processing
Roasting : Roasting of chicory is done at factory
level. This will improve the flavors of chicory
Grinding : Roasted chicory then grinded to convert
in to powder form. Then this powder is treaded in
the market. This powder is use to blend it with
Coffee to made coffee cheaper
Cost of Production at Farm Level

Others Seeds
16% 21%

Water 25%
Cultivation & Processing

Nov-Mar/Apr (140-155 days)

Seed imported, broadcasted
No pesticide
Labour for weeding and harvesting
Yield 2.5-3 ton dry roots/acre (25% WoW)
Sundried, sliced, roasted, grounded to powder
Processing in Gujarat & Blending in South India
Existing market channel
Factor market condition

High volume of chicory production in small area

Better price realization if the product could be stored till
October Month
Seeds provided by traders or chicory powder
manufacturers under agreement system
Production / Market Risk

Price fluctuation
Coffee production
Seed germination problem due to occurrence of Rain with
in two-three day of sowing
Why cooperative???

Increase in bargaining power of farmers

Easy loan availability
In long run economies of scale
Cooperative Market Channel
Location Selection

Proposed Co-operative Location

 Narsanda Village Chicory Cooperative, Narsanda

 Establishing the Chicory Cutting plant and sun-drying in
 Concentrated Chicory cultivation
 Approximate Production: approx. 6000 ton dry /annum.
Pooling System
Payment system : 70% Fixed Pay off. Rest 30% refund
along with Patronage Refund at the end of year.
Patronage refund is based on proportionate contribution
15% of surplus will be kept as reserve


vMember Centrality: Members derive 45-50 per

cent of their income from chicory production
Break Even For Co-operative
Patronage Refund (rs. 0.43 / KG)

Better value realization

Lower credit period as compare to present situation
(reduction from 30 days to 15 days)




Free rider : Capital contribution of new entrants

in proportion to amount of product
Control Problem : Addressed by management
Influence Cost : Long term asset creation like
more cutting machine

Powder Manufacturing Unit : High return in

Collection from other villages : To increase in
control over market.
Credit : for Member Centrality
Sources of Information

Secretary, Dairy cooperative, Narsanda

Farmers of Narsanda, Valasan, Vadtal

Pioneer Chicory Processing Plant,:

2. Ravipura
Literature and Web Link

Chicory in India, A.Puspharaj

Agriculture market linkages, Vaswani; Talati