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Innovative Initiatives for Agricultural Marketing in India Dr. J.S Yadav C.O.O. Premium Farm Fresh Produce Ltd.

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Presentation on theme: "Innovative Initiatives for Agricultural Marketing in India Dr. J.S Yadav C.O.O. Premium Farm Fresh Produce Ltd."— Presentation transcript:

1 Innovative Initiatives for Agricultural Marketing in India Dr. J.S Yadav C.O.O. Premium Farm Fresh Produce Ltd.

2 Flow of Presentation Organic Waste Management Electronic Auction Online Inspection System Market Information Dissemination Networking and Interdependency Grid Formation between Markets Carbon Construction

3 Organic Waste Management Global Scenario According to WUWM study, wholesale markets are managing only 1.5 – 2% of the marketed quantities of fruit and vegetables. 43% of collected quantities of waste is recycled Un-recycled waste is basically dumped (land-filled) or incinerated (burnt). Annually 230 million tons of solid waste produced in the US. Recycling succeeds in preventing about 30 percent of these wastes from being dumped in a landfill or incinerated

4 Cont… Food waste comprise the third largest solid waste category (more than 25 million tons per year) Less than two percent of food wastes in the US are managed through composting. Cost of composting works out more and marketability of the product may be a problem Composting best suited where vegetable and fruit clusters are located

5 Waste Stream Diversions/ Advancements Organic Recycling Regional Food Waste- to- Energy Facility Green Energy and nutrient rich fertilizer Earth Power Technology (anaerobic digestion technology) Bio-Methanation Refused Derived Fuel (RDF) Gas +Compost

6 Methods of Solid Waste Management MethodsProducts Land fillingLand fill gas IncinerationElectricity CompostingLow value compost Converted organics High value biostimulants

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8 Cost Norms for Organic Waste Plant 1 MT capacity – Rs 5 Lakh (without mechanical segregation) Anaerobic Process 500MT / day = Rs 2 crore (minimum 500 MT capacity) 100 – 200 MT (with segregation Plant)= 1 crore and above) Average 100MT /day capacity plant requires 15 acre of land

9 Possible viable options for Markets There are equipments available to manage SWM on-site On-site unit lessen the burden on city plants 1. On-site Unit

10 Cont.. Eg. Terra Farma, B’lore purchased land and set up 1000 MT capacity plant – not even single truck arrives till date Municipal Authorities say that they are sending the trucks but it never reaches there On-site organic waste management is not an alien concept

11 Few builders in India have installed in here premises (eg Nirman Shelters, B’lore) On-site unit is cost effective and viable as it saves pay for disposing charges Govt. of Karnataka has made on-site unit mandatory for housing units

12 2. Bangalore Golf Club Commencement : Apr 2009 Cost : 6 Lakh No PPP but run by club (management) Machinery Site : 6ft x 4ft Capacity : 30 kg input/hr Solid waste+Dried grass+ Sawdust (purchased Product : Organic Manure

13 Manure being used for Turf and Lawn Price : Rs5/kg for general purpose 300 – 400kg/stock Output : 30-40 kg/day Capacity : 80 days in three months (90%) Cycle for manuring : 15 days Space : 15x15ft room

14 Organic Waste Convertor Specifications: Input: Segregated Organic Waste Model: OWC 60, OWC 130, OWC 300 Capacity: 25kg.,50kg.,125kg per batch Batch Time: 15 to 20 min Power: 4HP/8HP/13.5HP Area: 3Mx4M for Composting Machine Excel India Ltd Website: http://www.excelind.co.in/

15 Koyambedu Market Complex being one of the largest in Asia, generates significant quantity of organic wastes. About 30 tons of Vegetable wastes are generated per day. Such organic wastes dumps are a potential threat to the environment and the public health. This leads to emission of obnoxious odours and gases like methane, carbon dioxide which are potential greenhouse gases. 3. Bio-methanation Plant at Coimbatore

16 As a result of this, it was proposed to set up a waste treatment plant through High rate biomethanation and produce electricity Biogas expected - 1500–2500m3/day Power Gross - 3000-5000 Kwh/day

17 E-auction

18 e-Auction versus e-Trading e Auction All buyers are aware of quality and quantity of produce on sale The buyer must compete or bid to buy Price discovered is market driven e Trading VSAT based Internet based Intranet based Platform based 1. Spot exchange 2. Futures

19 Overview Electronic Auction Systems are sophisticated solutions to address the growing need for an efficient trading method EAS help networking of domestic and global markets

20 Auction Process There are 3 independent Auction process that are offered by the EAS system globally. 1. Dutch Auction 2. English Auction 3. Combi-Auction

21 21 4/25/2015anwerblr@gmail.com21 Auction Hall

22 Dutch Auction or Reverse auction An auction in which an item is initially offered at a high price that is progressively lowered until a bid is made and the item sold Auction clock aids the auction master in the auctioning The current price is displayed in figures and on a giant circular dial Price falls at a steady speed determined by the auction master Buyers in the hall observe it on the clock dial

23 Bidding Process Interested buyer pushes the bid button on his bidding terminal at the desirable price The buyer may talk to the auction master via telephone hand set on his table Once the quantity desired is allotted the auction begins again In this new round, clock speed is increased by a fixed amount and prices fall again

24 24 4/25/2015anwerblr@gmail.com24

25 25 ENGLISH AUCTION 4/25/2015anwerblr@gmail.com25

26 Benefits of Dutch auction quick and efficient for price discovery and multiple auctions Dutch auctions currently deployed in Holland are able to operate at speeds of up to 1500 auctions per hour

27 The English Auction Ideally suited for auctioning of non- perishable commodities Generally generate higher prices but take longer time Usually used to auction larger lot sizes

28 Bidding Process Begins with the floor price being displayed on the clock The buyers are given a fixed time seconds (can be changed by auction master) to place their bids A two digit count down display shows the time remaining before the auction closes. The auction ends when no more bids are received and the count down reaches ‘00’. The successful bidder is the one who bid last and whose ID appears on the clock.

29 Interested buyers place their bids by pressing the bid button on the bidding terminal Each bid pushes up the current price displayed on the clock by a fixed amount This increment value is displayed on each users bidding terminal and is fixed by the auction master during the lot preparation process.

30 The Combination Auction (Combi-Auction) It harnesses the strengths of the Dutch and English auction processes The quick price discovery technique of the Dutch auction along with the higher price realization of English Auction is combined competitive nature of the English auction pushes the price up marginally from the discovered price.

31 Some Overseas Examples Belgian fruit and vegetable circuit The Belgian fruit and vegetable circuit includes the following markets 1. Belgische Fruitveiling, Sint-Truiden 2. Limburgse Tuinbouwveiling, Herk-de-Stad 3. Mechelse Veilingen, Sint-Katelijne-Waver 4. Profruco, Sint-Niklaas 5. Veiling Borgloon, Borgloon 6. Veiling Brava, Kampenhout 7. Veiling Brava, Zellik 8. Veiling Haspengouw, Sint-Truiden 9. Veiling Hoogstraten, Hoogstraten 10. Veiling Reo, Roeselare

32 Technology : electronic auction hall equipped with remote bidding (participation of bidders in the auction real time from their offices, homes etc through their computers connected to the auction network) Turnover : (€)611261381(INR 4277 crores) annually

33 ZON, the Dutch fruit and vegetable market The market's sales of horticultural foodstuffs was about 229 million Euros.(2002) Technology : electronic auction clock in auction hall with remote bidding which allows buyers to bid from their homes or offices over an Intranet

34 Quimper Chamber of Commerce-France The chamber runs the following interconnected markets : Audierne, Concarneau, Douarnenez, Loctudy, Le Guilvinec, Saint-Guénolé and Lesconil, combined sales comprising 63,150 tons of fish Technology = The Moby-Clock is a mobile auction system that is driven amongst the boxes of fish during the sale. Buyers bid using individual hand held transmitters. All required functions, input PC, ticket printer and display panel are built-into the Moby-Clock. This technology has also been adopted by the Looe Fish Market (England)

35 Mobile Auction- Moby Clock

36 36 Mobile Auction-Indian Model

37 Alsmeer in Holland The biggest flower auction in the world The whole complex covers 135 Approx, 4 billion flowers and 400 million plants are sold annually, coming from 8.000 nurseries. The annually turnover amount to more than 2 billion Dutch Guilders. This auction has 13 clocks, divided over 5 auction rooms, each room has 300/400 buyers every day

38 Landgard, Germany Covering a total area of 200,000 m² with over 300 docking stations Marketing cut flowers and pot plants in Germany Mode of sales-electronic auctions in auction halls and direct sales Technology at auction hall- auction clock with bidding facility for bidders in the hall. No remote bidding

39 Sydney fish market About 58 tonnes of seafood auctioned daily. Technology includes three auction clocks, a buyers' gallery and a remote buying program. The gallery houses 90 desks with seating for 180 buyers

40 Limitations of the electronic auction process Electronic communication does not capture non price information like the other bidders reaction in response to bids Reduces social interaction opportunity Image quality determines the perception of the bidders for the quality of the produce. No provision of visual inspection and inspection of quality is a major deterrent

41 Online Inspection system A concept to take inspection services in to the electronic age. This system will also aid the electronic auctions Can prove to be a very potent aid in assuring the bidders of the quality of the lot. Fresh inspection results will be reported electronically The commodity will be inspected as per the requirements and real time documentation will be done to make the results instantly available

42 Benefits Instant inspection results Uniform certificates Electronic distribution Permanent paperless record of inspection results Digital images of the product can be attached to certificate Certificates can be maintained electronically, so any involved party can have instant access to the certificates The transmission of certificates can occur within seconds

43 Market Information Dissemination - A Case of Thompson Reuters

44 Cont… Dissemination of information identified as a critical issue by PFF Registered farmers with PFF - 7500 detailed profile available Mobile Information Services to Farmers- Identified Service Provider Reuters Market Light ( Thompson Reuters)

45 RML-PFF Subscribers Receive Daily weather updates for the next 24 hours Farmers can subscribe for two commodities and receive market data from three markets of his choice (one being PFF and two other regulated markets). This helps farmers decide where and when to sell their produce Price updates and arrival information of select commodities

46 Presently, RML is covering over 60,000 farmers in Maharashtra state alone Crop advisory Tips are sourced from the Indian Council for Agriculture Research &/or State Agricultural University. Service also provides news related to agriculture, state government schemes, price trends and commodity movements etc three times a day.

47 Purchase RML-PFF membership card Service being provided in chosen local language (Marathi in Nashik) Offer with validity for 3/6/12 months Cost effective service 3 months- Rs. 175 6 months- Rs. 350 12 months- Rs. 650

48 Networking and Interdependency Grid Formation Between Markets

49 Carbon Construction Enzyme based Technology for Road Construction for Premium Market, Nashik

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59 THANK YOU!!


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