1. Development of Supply Chain for Fruit and Vegetable Industry
Dr. D. N. Kulkarni
President – Agri Food
Jain Irrigation

2. An overview of Indian Agriculture
(Production side)
Comparative advantages:
Diverse agro-climatic zones across the country,
Round the year sunshine
Potential to cultivate a vast range of agricultural products
Second largest arable land in the world
Potential for Large marketable surpluses and abundant raw material for processing
Vast pool of skilled manpower in research and extension
These advantages being leveraged, for India to be a leading food supplier to the world.

3. Area and production of Agricultural products (Production in million tonnes)
India
India’s Rank in World
Arable Land (Million ha)
151 2
Irrigated Land (Million ha) 55 1
Wheat 72
Rice, Paddy
124
Coarse grains (including maize) 29 3
Milk 91
Fruits 47
Vegetables 82
Edible Oilseeds 25
Pulses 15
Sugarcane
245
Tea
0.85
Cattle (million)
186
Source: Rabobank International

4. India is the front ranking producer of many perishable commodities
India produces
41% of world’s mango,
23% of Banana,
24 % of cashew nut,
10% of onion,
30% of cauliflower,
36% of Green Peas.
China : $195 bn; USA : $150 bn; India - $105 bn.
India has
53% of world’s buffalo and
17% of goat
And a 8000 km of coastline

5. Present Scenario in Value Chain
Cost Build Up For One Kg. Basket Of Fruit
11.6
2.5
FARMER
TRADER
WHOLESALER
RETAILER
CONSUMER PRICE
3.3
4.1
1.7
Retail Markups
FARM GATE PRICES
MILK
FISH
FRUITS &VEGETABLES
350
220
160
100

6. Domestic Market Scenario…...
Production may be insufficient if domestic markets all over the country targeted efficiently & effectively.
Market prices are satisfactory
Mango, Grapes, Apples, Pineapples, Pomegranates, Litchis can be sold out in the country itself because of the production in limited orchards & demand in whole country.
Markets in the rural & semi urban(around 60-65%) should also be tapped along with Metros or big cities(around 12-15%)

7. International Markets : Trends
Steady increase in global production of fresh produce.
Balance of power shifting to retail chains from suppliers
Food safety standards are higher & more complex requirements.
Demanding regulations
Increasing intensity of technology
Consumption is convenience-driven. i.e. Value added products.
Increasing health concerns reflected in food consummations.
- Organic, functional, herbal.

8. Scenario of export of major fruits in India
Mango :
Over 54% of the world mangoes are produced in India.
Less than 10% of total production are approximately exported.
It shows export prospectus for Mangoes is very high.
Markets to be focused for Mango export:
UAE, Bangladesh, Saudi Arabia, Kuwait, EU,
. New Markets- Japan, USA, China

9. Scenario of export of major fruits in India
Grapes :
India produces approx. 1 million tons of fresh grapes
annually, out of which export of grapes is about 14000
tons per year, which accounts for only 1.4% of the total production.
Grapes import accounts for approx million US $ of
which the Indian share is only about 1.5%.
Major Markets to be focused for Grapes export:
UK, UAE, Netherlands, Germany, Saudi-Arabia, Oman etc..

10. Scenario of export of major fruits in India
Banana : First in production of Banana in the world. (Around 22% of world’s total output). However, the export from India is negligible.
Reasons:
Non availability of on-farm packing house, precooling and cold storage facilities.
Improper pre-harvest practices.
Improper post harvest handling.
Major Markets to be tapped for Banana export:
UAE, Saudi-Arabia, Qatar, Oman, Kuwait, Bahrain etc.

11. Scenario of export of major fruits in India
Pomegranate : Europe, UAE, Saudi-Arabia, Kuwait, Oman
Apples : Bangladesh, Belgium,Singapore, Srilanka, UK,
Malaysia etc.
Citrus Fruits: (Oranges, Mandarins, Lemons, Limes etc.)
Bangladesh, UAE, Oman etc.
Pineapples: UAE,Saudi Arabia, UK etc.
Other fruits for export: Papaya, Sapota, Strawberries,Litchis etc.

12. AEZs in Maharashtra 1) Alphonso Mango 7) Grapes & Grape Wine
2) Kesar Mango
3) Pomegranate
4) Onion
5) Mandarin
6) Banana
7) Grapes & Grape Wine
8) Floriculture

13. Innovative mango Transport methods
Traditional Vs Innovative
Traditional mango Transportation methods are not ideally suited to effective food hygiene
Innovative mango Transport methods

14. Innovative mango packing methods
Traditional Vs Innovative
Traditional mango packing methods are not ideally suited to effective food hygiene
Innovative mango packing methods

15. Supply to Retail Supermarkets which are coming up with high pace

16. Where are lacunae ? Fragmented land holding
Very poor backward and forward linkages
Poor infrastructure
Lack of post harvest Technology
Poor logistics
Supply Chain Management missing

17. Supply Chain Management
End use based production
Contract cultivation
Captive cultivation
Cluster approach in cultivation
Supply just in time-production logistics
Quality production
Post harvest technology application
Scientific storage

18. End use based production
Local market for table purpose
Long distance market within country
As raw material for processing and for definite product manufacture
Produce what market / consumer wants

19. Competitiveness Global and local competitiveness
Key issues in supply chain……….
Global and local competitiveness
Quality competitiveness
Cost competitiveness

20. Quality Competitiveness
Variety
Controlling quality during growth
Harvesting and Maturity standards
Post harvest handling
Post harvest treatments
Packaging and storage
Safety and Hygiene
Traceability

21. Quality production Variety Season Horticultural practices
Integrated water, nutrient, pest and disease, weed management
Training/prunning
Growth regulators
Organic cultivation
Harvesting methods/maturity standards

22. Cost competitiveness Cost of production Productivity
By-product and waste utilization
Off season production
Marketing logistics
Value addition
Presentation in market

23. Supply Just in Time – logistics
Determine what buyer wants?- Variety, Quality, Stage of maturity
Determine when he wants?- Frequency
Determine how much he wants?- Quantity, Lot size, Duration
Determine how he wants?- Grading, Packaging, Transport mechanisms
Determine where he wants?- at farm, Port

24. Service providers Aggregators Logistic support Cold chain Warehousing
Port handling
Credit facilitators
IT related services

25. THANK YOU