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The Production, Sourcing

,
Supply and Distribution of
Fruit & Vegetables for
Urban Clusters in India

The Production and
Supply Chain
Management from
Production Clusters
to Urban Centre
By Green Tech Agri
Sector Pvt.Ltd.
Rajender Thakur

Urbanisation in world-2025

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Metros and cities on Indian map
&Scope of organised F&V in India
Aspect Curren Expect Overal
s t size ed l
(2008- size in increa
09) 2020 se(%)

Retail Rs. Rs. 206
17,497 53,517
billion billion
Food Rs. Rs. 206
retail 10,673 32,696
billion billion
Organis Rs. 150 Rs. 620 313
ed food billion billion
retail

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India’s top cities-leading in
consumer awareness,income and
spending
Rank Towns States Per-
Capita
Income
1 Chandigarh Chandigar 26, 710
h (UT)
2 Panaji Goa 26,075
3 Delhi Delhi 24, 141
4 Valparai Tamilnadu 23, 772
5 Greater Maharasht 23, 109
Mumbai ra
6 Pune Maharasht 22, 817
ra
7 Ludhiana Punjab 22, 178
8 Chennai Tamilnadu 21, 885
9 Shimla Himachal 21, 348
Pradesh
10 Jalandhar Punjab 21, 254
4

Consumer expenditure and growth on food items in India 5 .

53. 17. 32.517 206 billion billion Food retail Rs.673 Rs. 10.Scope of organised F&V in India Aspects) Current size Expected size Overall (2008-09 in 2020 increase(%) Retail Rs.696 206 billion billion Organised food Rs.497 Rs. 150 billion Rs. 620 billion 313 retail 6 .

7 . Second largest producer of fresh fruits and vegetables. but productivity is not at par with global norms.Premium F&V Production Scenario Wide range of agro climatic zones and skills for growing different fruits and vegetables under both open and protected cultivation.

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F&V PRODUCTION 221 MMT 146MMT 75MMT Potato Potato Okra Okra Banana Mango Mango Tomato Tomato Brinjal Papaya Guava Guava Brinjal Cauliflower Cauliflower Pineapple Grapes Grapes Beans Beans Cabbage Cabbage Lime Apple Apple Onion Gourds Gourds Lemon Litchi Onion Litchi Peas Peas Leafy Leafy Mosambi Orange Orange Cucumber Cucumber Ginger Ginger Sapota Pome Pome Garlic Garlic Tubers Tubers Coconut granate granate 10 .

11 .

36 28170 French Beans 28115.04 6210 Spinach 39488.75 10370 Tomato 2582619.95 11030 Cabbage 610880.15 6400 Sweet Potato 50848.49 10020 Capsicum 96102.17 13500 Potato 7301810.07 19000 Cauliflower 775179.78 27240 Green Peas 108179.70 8060 Brinjal 769732.81 30590 Mushrooms 468.46 8050 Exotics 84958.82 11050 Drumstick 325920.74 11790 12 .77 8100 Raddish 141579.47 24670 Carrot 313044.17 14160 Cucumber 363816.Market Arrival of F &V and average prices-2012 Commodity Market arrival in Average tons Price/ton Bhindi 351588.82 19330 Bottle gourd 239465.00 9420 Pumpkin 303267.19 108460 Onion 8345819.

Export of Horticultural Produce from India 13 .

Consumption of Fruits and Vegetables in India 14 .

Fresh exotic fruits and vegetables.nethouse and hydroponics . Processed natural juices.sauces and 15 . Processed and Frozen vegetables. B. G. Fresh Organic Fruits and Vegetables. D. E. Quality produce from precision farming/protected cultivation such as greenhouse.jams.Premium F&V products in India A. C. F. Fresh off season fruits and vegetables from open cultivation. Mushrooms –fresh and canned.

Focus-F&V crops FRUITS VEGETABLES 16 .

Export-Fruits and Vegetables VEGETABLES FRUITS 17 .

2010 Netherlan 89600 Euro Stat 2011 ds France 9. 2011 (2010) Korea 57. 2011 Italy 26. 2010 Mexico 11. 2011 (2009) Spain 52.500 Euro Stat.Major Greenhouse Production Countries COUNTRY AREA (ha) SOURCE China 27.759 SAGARPA. 2010 Japan 49.170 Euro Stat.60. 2005 18 .444 Lee.620 Euro Stat.000 Yang.049 MAFF.

Orissa and some 2011-12 22528. As a result.81 Haryana has already made 2009-10 6634.25 northeastern states are also coming forward. 2010-11 5536.55 Uttrakhand.Growth under greenhouse cultivation in India & major areas Year Area in Major states-Maharashtra. hectares Karnataka.47 Himachal Pradesh. the total area under protected cultivation is estimated to have expanded in the past one decade to nearly 30.82 Andhra Pradesh.47 Rajasthan. Gujarat. 2005-06 451.74 notable headway. 2006-07 1440. Punjab and 2008-09 7086. Tamil Nadu. 19 . 2007-08 4796.000 hectares.

Production and productivity- open. Name of Crop Production(Tons/Ha) No.greenhouse & hydroponics Sr.     Open Greenhouse Hydroponics 1 Tomato 30-50 60-100 150-250 2 Cherry Tomato 15-20 30-40 75-100 3 Green Capsicum 20-30 40-60 100-150 4 Colored capsicum 12-20 25-40 60-100 5 Green Chilly 8-12 15-25 40-60 6 Cucumber 40-60 80-120 150-180 7 Iceberg Lettuce 20-25 40-50 200-250 8 Coriander 15-20 30-40 150-200 9 French Bean 10-15 20-25 50-60 10 Squash 25-30 50-60 100-150 11 Chinese Cabbage 15-20 30-40 50-100 12 Spinach 15-20 30-40 150-200 13 Celery 20-30 40-60 100-150 14 Parsely 10-15 20-25 100-125 15 Straw berry 5-6 10-12 25-30 20 .

Retailing-Traditional model 21 .

Retailing-Organised model 22 .

Value Chain Model 23 .

organic production.  Indian corporate are investing in agribusiness .  Various niches in fruits &  No access to international vegetables can be created. developed nations.  Inadequate PHM and related   Differentiation can be easily infrastructure to support created. chemicals as compared to  Price competitiveness.Strengths & Weakness of Premium F&V Produce in India STRENGTH WEAKNESS  Lack of farmer awareness about  Wide variety of fruits and agricultural practices.  Farmers  as well as  Lack of R&D base in organic Government interests are and precision production . rising in organic and off  Unavailability of quality inputs. season F&V production  Certification and labeling. products vegetables  can be grown . market.  Lack of market information and  Organic pockets existing in intelligence. different parts of the country. 24 . and technologies for organic  Very less consumption of and precision farming.

 Export opportunities in new product/market. Europe and Japan are rising markets.  USA.  Rising demand for organic products.Opportunities of Premium F&V Organic Produce  Favorable government vision.  Branding  offers new opportunities for differentiation.  New products.  Private sector keen to join premium F &V value chain. production. 25 .  New developments in  post harvest technologies. PHM technologies .  Big retail stores/chains opening up.  WTO  offering global opportunities.  Price –premiums in different markets.

good agricultural practices and management. Packaging Innovative and attractive customized packing so that material is safe during transportation. Post Harvest Establishing collection and processing centers Management in each growing clusters because premium crops are climacteric in nature and are highly sensitive to change in temperature they need proper cold storage chain till point of sales to the end consumer. Marketing Direct marketing to customers. organic farming. Storage Cold storage near production areas. Quality improvement Quality inputs. Transportation Refrigerated vans. 26 . aggregators.Solutions Productivity Precision farming through cluster approach by adopting greenhouse and hydroponics cultivation. hotels and establishments.

27 . 86% of sales were to consumers and the remaining 14% to establishments such as restaurants and canteens or institutions such as hospitals and schools. retail chains.  The annual demand for mushrooms that was around 5. RWAs and ULBs and health authorities want assured supplies from ‘identified production clusters.  Exotic vegetables market is growing at the rate of 15 to 20% per annum is increasing day by day since India is importing more than 85% exotic vegetables.000 tons in 2004 and the demand is expected to grow at a good pace of 25% every year for many years to come. Of the total volume.  Demand-driven exotic vegetables production is suitable for the farmers as they have assured market through contract with consumers.’  Green Tech will initiate organic production of fruits and vegetables under its own brand in all major cities having population more than 1 millions.  Aggregators .  Establishment of post harvest management and marketing infrastructure.F&V-Demand  Total vegetable volume sales exceeded 90 million tones in 2011.000 tons in 2001 in the country has doubled to 10.

english vegetables..  Green Tech Agri Sector Pvt.  Adoption of precision farming technologies. strawberry and a wide range of horticultural crops. will establish its own hydroponics farms(5-25 acres) in and around major urban clusters to produce year round fresh organic capsicum. cucurbits. while the national potential is ten lakh ha. seeds.  Credit facility to farmers to meet operational expenses. INM & IPM. etc for generating income round the year. 28 . shade net houses. Ltd. tomato.  Supply of Quality planting material.  Organizing farmers clusters to overcome issues of fragmented land holdings.  Good Agriculture Practices.  Presently the area under vegetable production under protected conditions is 30000 ha.F&V-Supply  Production and productivity of crops and profitability of farmers can be enhanced by encouraging 'off-season' production under precision farming systems such as protected cultivation in green houses.

Olives etc some of which are imported from other countries. Red cabbage.  India had a large and growing population of over a billion people of whom. a think tank.52 trillion by 2025. around 300million were categorized as middle class consumers who had significant purchasing power. Due to huge supply chain. Mainland china. Preparation of these food items need many exotic vegetables like Baby corn. California Pizza. estimated India’s retail market would be worth $1. The country also offered a relatively young market with 54 percent of the population below 25 years of age. mushroom. Asparagus .  The McKinsey Global Institute.  With the introduction of new food chains like McDonald's. more demand and less supply 29 .Scope of Premium F&V  The Premium Fruit and Vegetable Initiative is proposed to cover Peri urban areas around all State Capitals or other cities with more than 10 lakh population. up from $370 billion in 2005. Total 40 Cities to be covered during 2013- 18. Broccoli. Pizza Hut etc. the people in India are now developing new test buds to accept new food items. lettuce. Colored bell pepper. McKinsey estimated the food-and-beverage category would still account for 25 percent of all retail spending in 20years.

 The country produced around 3. With rising spending power of the growing middle class in the country and increased awareness towards chemical free food. coffee.000 hectare).000 hectares). Chennai. Mumbai.  The states doing well in organic farming are Madhya Pradesh (440.  Organic foods industry presently is metro-based. 10 billions. spices and oilseeds. Bangalore and other tier II cities.  Indian market for organic food including exports is currently valued at Rs. 30 . tea. Maharashtra (150.Market of F&V produce  The market for organic food products in India is growing at 20-22 per cent a year. Kolkata. pulses.88 million tons of certified organic products that include basmati. Pune. organic and natural products sector will grow significantly in the coming years.000 hectares) and Orissa (95. with about 95 per cent of the brands existing in top 10 metros like Delhi (NCR).

Objectives  To address all concerns related to both the demand and supply side of the premium fruit and vegetable sector in selected cities. fresh as well as processed agri produce at competitive price for urban consumers. right from the stage of pre- production to the consumers table through appropriate interventions.  To establish an efficient supply chain thereby leading to employment opportunities and incomes for intermediate service providers. improve nutritional security and income support to vegetable farmers.  To address the entire value chain.  To promote. and safe.  To enhance vegetable production and productivity.  To create employment generation opportunities for skilled and unskilled persons. especially unemployed youth. 31 . good quality. developing and disseminating technologies for enhancing production and productivity of vegetables in peri- urban areas of major cities.

Interventions -Backwards  Baseline Survey of urban clusters to assess demand and supply. 32 .grading. primary processing . storage and value addition at production clusters.  Organization and Promotion of Farmers Groups/Farmer Institutions .  Measures for enhancement of production and productivity through precision farming .  Establishing hydroponics structures. mushroom production units. plant health clinics.

Farmers groups. capacity building)  Post harvest management. SPVs. corporate. CBOs) for seedling development.  Establishment of grading. packing. processing and storage facilities  Support of ULBs for static/mobile CA kiosks. INM/IPM.  Support of institutions (co-ops. storage and transport infrastructure  Suitable Tie-ups between production clusters/Farmers groups and Aggregators 33 .Interventions -Forward  Establishment of collection and testing centers in each potential cluster. contract and organic farming. Universities. GAP.

State Agricultural Universities. State capitals or any other urban centers with a population of 1 million and above urban clusters will be identified through out the country.NDDB. will establish partnership with Big commercial farms.Partners in F&V  Green Tech Agri Sector Pvt.  State Horticulture Missions & National Level Agencies such as SFAC. 34 .  All Metros. Agrifinance companies.Logistics companies. Food processing companies .  Corporate Strategic Action Plan covering end –to-end interventions in the supply chain based on comprehensive survey and assessments. ICAR institutes.NABARD. Ltd. Retail houses and Various Farmer Producer Organisations.Departments of Agriculture and Horticulture. NHRDF.

identify bottlenecks and potential vegetable growing clusters.Strategy and Roadmap  Goodyield Farming Ltd. processing. potential of vegetable development. for post harvest management. existing as well as potential. availability of land.  The project report will be formulated for each selected urban cluster which should invariably contain information on geography & climate. will identify and select the city they wish to take up in 2013-14 and develop the project for fruit and vegetable supply to the city. SWOT analysis. marketing and 35 . and strategy for development and plan of action proposed to be taken to achieve goals in the identified urban cluster of the State.  Focus will be on adoption of cluster approach for production and linking with available infrastructure to be created.  Perspective plan/strategic plan will be prepared based on the Baseline survey to assess the extant vegetable supply chain to the identified city.

farmer cluster and Tie up with Aggregators at Corporate office of Green Tech Agri Sector Pvt. hydroponics farms collection centre.2013-14 36 . training and demo farms. selection of metros and cities.  Marketing and Distribution Network(2013-17)  Consolidate bench mark data on area. productivity and market arrivals of important vegetables. farm credit. grading and pack house. production.Actions  Baseline Survey.(2013-14)  Prepare projects on above lines and approve Projects by BoD by mid May 2013-14 and implement throughout India. plant health clinic. mini-cold store(2014-17)  Setting up of Model Mushroom Production Unit(2015).  Setting up of Green Tech Precision Farming Centres equipped with all agri-inputs . farmers cluster and Tie up with FIs and Aggregators(2013-14) .  Identify the Town/City (2013-14)  Participation in Workshop on Baseline Survey.  Organisation of farmer producer organisation /groups in each urban clusters (2013-14).Ltd.

 Good profits due to higher selling rates.  Changing food habits of rising middle urban class due to rise in their income.Enables  Fast growth in organic products.  Income and employment generation.  Modern retail outlets in urban clusters.  Cash and carry of organic fruits and vegetables.  Government support with Foreign Direct Investment. 37 .

25 0.25 clinic acre unit 3. 1. Tech Precision Farming Centre in crores Sr Particulars Unit Rate Firs Secon Third Fourth Fifth Amount Rs t d year year year Cr yea year r 1. . 0.20 0. Refer vans 6 3 25 lac/ 0. . . . Cold store 0.16 0.00 1.25 Processing acre unit 6. Grading & 0.20 . Shop cum 0.79 38 .25 20 lac 0. . .10 25 lac/ . Plant health 0. .00 .25 0. Mushroom 0. .20 office acre 9. .00 1.15 Packing acre unit house 5. 0. Primary 0. 0.25 0. Misc.75 MT unit 8. 0. 0. .15 . 0. .00 1. 0.25 . 0.25 .10 0.00 5.00 1. 1.00 Production acre lac/unit 4.23 0.10 0.25 6000 MT acre unit 7.00 Structure qm 2. . . .25 100 . Hydroponic 4 acre 2500/S 1.25 25 lac/ .25 15 lac/ 0.10 25 lac/ . .25 . . 0.

Operating Expenses of a Green Tech Precision Farming Centre in crores Sr.05 0.15 10.77 0. Cold store . Grading &Packing 0.02 0.05 0.03 0.54 0.22 0.50 39 .11 0.05 0. Electricity & Telephone 0.92 6. Hydroponics structure .60 2.03 0.06 0.22 0. 0. Mushroom Production Unit . Primary Processing Unit .23 0.10 0.50 22.24 0.09 0.03 0.98 41.05 0.04 0.25 12.03 0. Lease rent 0. Agri Inputs 1.97 1. 0.20 1.45 9.03 0. Refer Van 0.03 0.07 7.03 0.05 0. .05 0.20 3.09 0.06 0. 0.00 1.03 0.50 3.15 14. Input Sale 0. Plant health clinic .03 0.23 0.22 0.05 0.23 0. B. Security 0. 0.50 5.05 0.44 1.91 8.05 0.06 0.09 11.32 0.10 0.77 16.10 5. . Misc.09 0.09 0.48 0.96 1.11 0.50 4 Office 0.10 0. 0.72 0.24 13. .50 6.73 2.11 0.23 0. Total B 3.44 3.33 7.22 0.05 0. Purchase of vegetables 1.36 15.00 4.46 10.18 3.05 0.15 8.03 0. . 0.00 7. Particulars First Secon Third Fourt Fifth Amount year d year h year year year 1.69 12.09 0.22 1.

77 2.53 5.66 11. C.30 58.20 1. Total A 1. Total Expenses a Green Tech Precision Farming Centre(Crores) S Particulars First Secon Third Fourth Fifth Total r year d year year year year amount 1.22 0.11 7.76 2.79 14.91 8.98 41. Interest 0.60 1.26 8.46 10.76 n 7 Total C 6. Total B 3.51 13.83 12.48 2.39 10. Total A+B 5.54 3.79 1. Depreciatio .25 0.11 0.08 50.18 4.26 1.05 9.64 2.10 8. 0.10 1.18 0.47 40 .50 5.78 16.69 12.

Sale of . 100ton 200ton 250ton mushrooms @10000 @10000 @10000 25tons/unit 0 0 0 1.50 3.00 9.50 6.20 1. . Sale of fruits & 1000to 2000ton 3000ton 4000ton 5000ton vegetables n @30000 @30000 @30000 @30000 5000tons/cluster @3000 6. D.20 8.13 20. Sale of . Income from a Green Tech Precision Farming Centre(Crores) Sr Particulars First Second Third Fourth Fifth .00 2.00 2.48 Inputs to farmers 3.07 2.57 25.48 41 .94 14.00 2.44 1. Sale of agri 1. Total income 4.00 12.50 0 3.00 5.00 15.00 4.73 2.50 4. year year year year year 1. 150ton 300ton 450ton 600ton hydroponics @10000 @10000 @10000 @10000 produce 0 0 0 0 150tons/acre 1.

multi-stakeholder collaborations.THANKS As a result of new multi- sector. 42 . urban and rural authorities and their citizens can come to better understand their food and ecosystem resources to adapt to multiple challenges and manage more resilient food systems” –FAO.