The Production and Supply

Chain Management from

Production Clusters to
Urban Centre
By Green Tech Agri Sector
Pvt.Ltd.
Rajender Thakur
2
Aspects Curren Expect Overall
t size ed size increas
(2008- in 2020 e(%)
09)

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

3
Rank Towns States Per-
Capita
Income
1 Chandigarh Chandigarh 26, 710
(UT)
2 Panaji Goa 26,075
3 Delhi Delhi 24, 141
4 Valparai Tamilnadu 23, 772
5 Greater Maharashtra 23, 109
Mumbai
6 Pune Maharashtr 22, 817
a
7 Ludhiana Punjab 22, 178
8 Chennai Tamilnadu 21, 885
9 Shimla Himachal 21, 348
Pradesh
10 Jalandhar Punjab 21, 254
4
5
Aspects) Current size Expected size in Overall
(2008-09 2020 increase(%)

Retail Rs. 17,497 billion Rs. 53,517 billion 206

Food retail Rs. 10,673 billion Rs. 32,696 billion 206

Organised food Rs. 150 billion Rs. 620 billion 313

retail

6
 Wide range of agro climatic zones and
skills for growing different fruits and
vegetables under both open and
protected cultivation.

Second largest producer of fresh

fruits and vegetables, but productivity
is not at par with global norms.
7
8
9
 F&V PRODUCTION
221 MMT
146MMT 75MMT

Potato Okra Banana Mango

Tomato Brinjal Papaya Guava
Cauliflower Pineapple Grapes
Beans
Cabbage Lime Apple
Onion Gourds Lemon Litchi
Peas Leafy Mosambi Orange
Cucumber Ginger Sapota Pome
Garlic Tubers Coconut granate

10
11
 Commodity Market arrival in Average Price/ton
tons

Bhindi 351588.82 19330

Bottle gourd 239465.70 8060

Brinjal 769732.95 11030

Cabbage 610880.49 10020

Capsicum 96102.47 24670
Carrot 313044.07 19000
Cauliflower 775179.17 14160
Cucumber 363816.82 11050
Drumstick 325920.36 28170
French Beans 28115.78 27240
Green Peas 108179.81 30590
Mushrooms 468.19 108460
Onion 8345819.46 8050
Exotics 84958.17 13500
Potato 7301810.00 9420
Pumpkin 303267.77 8100
Raddish 141579.04 6210
Spinach 39488.15 6400
Sweet Potato 50848.75 10370
Tomato 2582619.74 11790

12
13
14
A. Quality produce from
precision farming/protected
cultivation such as
greenhouse,nethouse and
hydroponics .
B. Fresh Organic Fruits and
Vegetables.
C. Fresh off season fruits and
vegetables from open
cultivation.
D. Fresh exotic fruits and
vegetables.
E. Processed and Frozen
vegetables.
F. Mushrooms fresh and
canned.
G. Processed natural
juices,jams,sauces and
pickles. 15
FRUITS VEGETABLES

16
VEGETABLES FRUITS

17
COUNTRY AREA (ha) SOURCE
China (2010) 27,60,000 Yang, 2011
Korea (2009) 57,444 Lee, 2011
Spain 52,170 Euro Stat, 2010
Japan 49,049 MAFF, 2011
Italy 26,500 Euro Stat, 2010
Mexico 11,759 SAGARPA, 2010
Netherlands 89600 Euro Stat 2011
France 9,620 Euro Stat, 2005
United 8,425 US Census Horti
States Spec 2010
India 30,000 NHB 2011

18
Year Area in hectares Major states-Maharashtra,
2005-06 451.82 Karnataka, Tamil Nadu, Andhra
2006-07 1440.47 Pradesh, Gujarat, Himachal
2007-08 4796.55 Pradesh, Uttrakhand, Punjab
2008-09 7086.81 and Haryana has already made
2009-10 6634.74 notable headway. Rajasthan,
2010-11 5536.47 Orissa and some northeastern
2011-12 22528.25 states are also coming
forward. As a result, the total
area under protected
cultivation is estimated to have
expanded in the past one
decade to nearly 30,000
hectares.

19
Sr. No. Name of Crop Production(Tons/Ha)

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
21
22
23
 STRENGTH
Wide variety of fruits and
vegetables can be grown .
Very less consumption of
chemicals as compared to
developed nations.
Organic pockets existing in
different parts of the country.
Differentiation can be easily
created.
Farmers as well as Government
interests are rising in organic and
off season F&V production
Various niches in fruits &
vegetables can be created.
Indian corporate are investing in
agribusiness .
WEAKNESS
Lack of farmer awareness about
agricultural practices, products
and technologies for organic and
precision farming.
Price competitiveness.
Lack of market information and
intelligence.
Inadequate PHM and
related infrastructure to support
organic production.
Lack of R&D base in organic and
precision production .
Unavailability of quality inputs.
Certification and labeling.
No access to international market.
24
 Favorable government vision.
WTO offering global opportunities.
Price premiums in different markets.
Export opportunities in new product/market.
USA, Europe and Japan are rising markets.
Branding offers new opportunities for differentiation.
Rising demand for organic products.
Big retail stores/chains opening up.
New developments in post harvest technologies.
New products, production, PHM technologies .
Private sector keen to join premium F &V value chain.

25
Productivity Precision farming through cluster approach by
adopting greenhouse and hydroponics cultivation.

Quality improvement Quality inputs, organic farming, good agricultural

practices and management.
Post Harvest Management Establishing collection and processing centers 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.
Packaging Innovative and attractive customized packing so
that material is safe during transportation.

Transportation Refrigerated vans.

Storage Cold storage near production areas.
Marketing Direct marketing to customers, aggregators, hotels
and establishments.

26
 Total vegetable volume sales exceeded 90 million tones in 2011. Of the
total volume, 86% of sales were to consumers and the remaining 14% to
establishments such as restaurants and canteens or institutions such as
hospitals and schools.
Aggregators , retail chains, RWAs and ULBs and health authorities want
assured supplies from identified production clusters.
Green Tech will initiate organic production of fruits and vegetables under
its own brand in all major cities having population more than 1 millions.
Establishment of post harvest management and marketing infrastructure.
Demand-driven exotic vegetables production is suitable for the farmers
as they have assured market through contract with consumers.
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.
The annual demand for mushrooms that was around 5,000 tons in 2001 in
the country has doubled to 10,000 tons in 2004 and the demand is
expected to grow at a good pace of 25% every year for many years to
come.

27
 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, shade net houses. etc for generating income round the
year.
Presently the area under vegetable production under protected
conditions is 30000 ha., while the national potential is ten lakh ha.
Green Tech Agri Sector Pvt. Ltd. will establish its own hydroponics
farms(5-25 acres) in and around major urban clusters to produce
year round fresh organic capsicum, tomato, cucurbits,english
vegetables, strawberry and a wide range of horticultural crops.
Organizing farmers clusters to overcome issues of fragmented
land holdings.
Credit facility to farmers to meet operational expenses.
Adoption of precision farming technologies.
Supply of Quality planting material, seeds, INM & IPM.
Good Agriculture Practices.

28
 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. Total 40 Cities to be covered during 2013-18.
India had a large and growing population of over a billion people of
whom, around 300million were categorized as middle class consumers
who had significant purchasing power. The country also offered a
relatively young market with 54 percent of the population below 25 years
of age.
The McKinsey Global Institute, a think tank, estimated Indias retail market
would be worth $1.52 trillion by 2025, up from $370 billion in 2005.
McKinsey estimated the food-and-beverage category would still account
for 25 percent of all retail spending in 20years.
With the introduction of new food chains like McDonald's, Mainland china,
California Pizza, Pizza Hut etc, the people in India are now developing
new test buds to accept new food items. Preparation of these food items
need many exotic vegetables like Baby corn, Red cabbage, Broccoli,
Colored bell pepper, lettuce, mushroom, Asparagus ,Olives etc some of
which are imported from other countries. Due to huge supply chain, more
demand and less supply these vegetables comes very costly in the Indian
market. 29
 The market for organic food products in India is growing at 20-22
per cent a year. With rising spending power of the growing middle
class in the country and increased awareness towards chemical
free food, organic and natural products sector will grow
significantly in the coming years.
Indian market for organic food including exports is currently
valued at Rs. 10 billions.
The country produced around 3.88 million tons of certified
organic products that include basmati, pulses, tea, coffee, spices
and oilseeds.
Organic foods industry presently is metro-based, with about 95
per cent of the brands existing in top 10 metros like Delhi (NCR),
Kolkata, Mumbai, Pune, Chennai, Bangalore and other tier II cities.
The states doing well in organic farming are Madhya Pradesh
(440,000 hectares), Maharashtra (150,000 hectares) and Orissa
(95,000 hectare).
30
 To address all concerns related to both the demand and supply
side of the premium fruit and vegetable sector in selected cities.
To enhance vegetable production and productivity, improve
nutritional security and income support to vegetable farmers.
To establish an efficient supply chain thereby leading to
employment opportunities and incomes for intermediate service
providers, and safe, good quality, fresh as well as processed agri
produce at competitive price for urban consumers.
To promote, developing and disseminating technologies for
enhancing production and productivity of vegetables in peri-
urban areas of major cities.
To address the entire value chain, right from the stage of pre-
production to the consumers table through appropriate
interventions.
To create employment generation opportunities for skilled and
unskilled persons, especially unemployed youth.
31
 Baseline Survey of urban clusters to assess
demand and supply.
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, primary processing ,grading,
storage and value addition at production
clusters.

32
 Establishment of collection and testing centers
in each potential cluster.
Establishment of grading, packing, processing
and storage facilities
Support of ULBs for static/mobile CA kiosks.
Support of institutions (co-ops, corporate, SPVs,
Farmers groups, Universities, CBOs) for
seedling development, INM/IPM, contract and
organic farming, GAP, capacity building)
Post harvest management, storage and transport
infrastructure
Suitable Tie-ups between production
clusters/Farmers groups and Aggregators

33
 Green Tech Agri Sector Pvt. Ltd. will establish partnership with Big
commercial farms, Agrifinance companies, Food processing
companies ,Logistics companies, Retail houses and Various Farmer
Producer Organisations.
State Horticulture Missions & National Level Agencies such as
SFAC, NHRDF,NDDB,NABARD,Departments of Agriculture and
Horticulture, State Agricultural Universities, ICAR institutes.
All Metros, State capitals or any other urban centers with a
population of 1 million and above urban clusters will be identified
through out the country.
Corporate Strategic Action Plan covering end to-end
interventions in the supply chain based on comprehensive survey
and assessments.

34
 Goodyield Farming Ltd. 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.
Perspective plan/strategic plan will be prepared based on the
Baseline survey to assess the extant vegetable supply chain to the
identified city, identify bottlenecks and potential vegetable
growing clusters, existing as well as potential.
The project report will be formulated for each selected urban
cluster which should invariably contain information on geography
& climate, potential of vegetable development, availability of land,
SWOT analysis, 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, for post harvest
management, processing, marketing and export
35
 Baseline Survey, selection of metros and cities, farmers
cluster and Tie up with FIs and Aggregators(2013-14) .
Identify the Town/City (2013-14)
Participation in Workshop on Baseline Survey, farmer cluster
and Tie up with Aggregators at Corporate office of Green
Tech Agri Sector Pvt.Ltd.(2013-14)
Prepare projects on above lines and approve Projects by BoD
by mid May 2013-14 and implement throughout India.
Organisation of farmer producer organisation /groups in
each urban clusters (2013-14).
Setting up of Green Tech Precision Farming Centres
equipped with all agri-inputs , farm credit, plant health
clinic, training and demo farms, hydroponics farms
collection centre, grading and pack house, mini-cold
store(2014-17)
Setting up of Model Mushroom Production Unit(2015).
Marketing and Distribution Network(2013-17)
Consolidate bench mark data on area, production,
productivity and market arrivals of important
vegetables.2013-14
36
 Fastgrowth in organic products.
Cash and carry of organic fruits and
vegetables.
Good profits due to higher selling rates.
Changing food habits of rising middle urban
class due to rise in their income.
Modern retail outlets in urban clusters.
Government support with Foreign Direct
Investment.
Income and employment generation.

37
Sr Particulars Unit Rate First Second Third Fourth Fifth Amount
Rs year year year year year Cr
1. Hydroponic 4 acre 2500/Sq 1.00 1.00 1.00 1.00 1.00 5.00
Structure m
2. Plant health 0.25 25 lac/ - - 0.25 - - 0.25
clinic acre unit
3. Mushroom 0.25 100 - 1.00 - - - 1.00
Production acre lac/unit
4. Grading & 0.25 15 lac/ 0.15 - - - - 0.15
Packing house acre unit
5. Primary 0.10 25 lac/ - - 0.25 - - 0.25
Processing acre unit
6. Cold store 0.10 25 lac/ - - 0.25 - - 0.25
6000 MT acre unit
7. Refer vans 6 3 25 lac/ 0.25 0.25 0.25 0.75
MT unit
8. Shop cum 0.25 20 lac 0.20 - - - - 0.20
office acre
9. Misc. - - 0.16 0.23 0.20 0.10 0.10 0.79
10. Grand Total A - - 1.76 2.48 2.20 1.10 1.10 8.64
38
Sr. Particulars First Second Third Fourth Fifth Amount
year year year year year
1. Lease rent 0.24 0.48 0.72 0.96 1.20 3.60
2. Agri Inputs 1.00 1.20 1.44 1.73 2.07 7.44
3. Purchase of vegetables 1.50 3.00 4.50 6.00 7.50 22.50
4 Office 0.22 0.22 0.22 0.22 0.22 1.10
5. Hydroponics structure - 0.23 0.23 0.23 0.23 0.92
6. Mushroom Production Unit - - 0.11 0.11 0.11 0.33
7. Plant health clinic - - 0.05 0.05 0.05 0.15
8. Grading &Packing 0.09 0.09 0.09 0.09 0.09 0.45
9. Primary Processing Unit - - 0.05 0.05 0.05 0.15
10. Cold store - - 0.03 0.03 0.03 0.09
11. Input Sale 0.05 0.05 0.05 0.05 0.05 0.25
12. Refer Van 0.03 0.03 0.06 0.06 0.06 0.24
13. Security 0.03 0.03 0.03 0.03 0.03 0.15
14. Electricity & Telephone 0.02 0.04 0.10 0.10 0.10 0.36
15. Misc. 0.32 0.54 0.77 0.97 1.18 3.77
16. Total B 3.50 5.91 8.46 10.69 12.98 41.50
39
Sr Particulars First Second Third Fourth Fifth Total
year year year year year amount

1. Total A 1.76 2.48 2.20 1.10 1.10 8.64

2. Total B 3.50 5.91 8.46 10.69 12.98 41.54

3. Total A+B 5.26 8.39 10.66 11.79 14.08 50.18

4. Interest 0.79 1.26 1.60 1.77 2.11 7.53

5. Depreciation - 0.18 0.25 0.22 0.11 0.76

7 Total C 6.05 9.83 12.51 13.78 16.30 58.47

40
Sr Particulars First Second Third Fourth Fifth
. year year year year year
1. Sale of - 150ton 300ton 450ton 600ton
hydroponics @100000 @100000 @100000 @100000
produce 1.50 3.00 4.50 6.00
150tons/acre
2. Sale of agri Inputs 1.20 1.44 1.73 2.07 2.48
to farmers
3. Sale of mushrooms - - 100ton 200ton 250ton
25tons/unit @100000 @100000 @100000
1.00 2.00 2.50
4. Sale of fruits & 1000ton 2000ton 3000ton 4000ton 5000ton
vegetables @30000 @30000 @30000 @30000 @30000
5000tons/cluster 3.00 6.00 9.00 12.00 15.50
5. Total income 4.20 8.94 14.13 20.57 25.48
6. Total costs 6.05 9.83 12.51 13.78 16.30

7. Net Profit D-C -1.85 -0.89 1.62 6.79 9.1841

THANKS
As a result of new multi-sector,
multi-stakeholder collaborations,
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.

42