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Comprehensive analysis of
The Quality Assurance for the export of grapes for
The Year 2011of Adani Agrifresh Limited
SUBMITTED TO
Mr. BADADE KUNAL.
Submitted By
Chandsure Shilatai Shivraj
M.Com.2nd
Roll No-5161
BATCH 2011
SHREE SWAMI RAMANAND TEERTH UNIVERSITY OF NANDED
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DECLARATION
This to declare that IChandsure Shilatai Shivraja student ofSHREE SWAMI
RAMANAND TEERTH MARATHWADA UNIVERSITY OF NANDED pursuing PostGraduate in COMMERCE (batch 2011-12). I have given original data and
information to the best of my knowledge in the project report titled
Comprehensive analysis of the Quality assurance for the export of grapes for
the year 2010of Adani Agrifresh Limited.
And that no part of his information has been used for any other assignment
but for fulfillment of the requirement towards the completion of said course.
I also agree in principle not to share the vital information with any other
person outside the organization and that I have not submitted it before for any
award or any other title degree or diploma.
Chandsure Shilatai date:
S.R.T.M..U Place.
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ACKNOWLEDGEMENTC
KNT I owe a great deal to SHREE SWAMI RAMANAND TEERTH MARATHWADAUNIVERSITY OF NANDED for laying the building blocks of logic andpragmatism in our life. This report, in a way is a reflection of these values. Theorganizational traineeship segment (OTS) provided us with a uniqueopportunity of working with an organization.
I would like to express my earnest gratitude and thanks to Mr. Arun
Kshirsagar, director for his support and kind blessings.I am also thankful to our
faculty guide Mr. Palnitkar Atmaram & Mr BADADE KUNAL. for his
encouragement and guidance throughout the project.I am highly indebted to
Mr.uday kadam for providing me with exceptional opportunity of working for a
dynamic organization like Adani agri fresh (ltd). I am very grateful to Mr.
Ganesh Sadaphal who guided me in the project period.
My heart felt thanks to my project guide Mr. Ashok Govande for constant
follow-up and valuable suggestions provided throughout the project. He has
always been an ever lasting source of inspiration and guidance.
I also thank all the respondents who have given their valuable time, views
and authentic information for this project including Mr. Ashok Govande .
I also grateful to all of them who are directly or indirectly involved in driving this
project to a success. I would like to thank my friends and colleagues for their
continuous support.
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Executive Summary
On the basic of internal data study of the company it can be said that quality
control parameters are very stringent for export to Europe Nations.
Research Methodology: internal data study of the company
Important Findings: most important finding from the secondary data can be
represented by two graphs. As shown below major varieties of grapes that are
export in the year 2008-09 by field Fresh are Thompson Seedless.
Shard seedless is exported mostly to Dubai and Middle East while
Thompson Seedless is exported mostly to European nations. (is X-axis parameter
is it no.of week)
Quality and price related parameters are shown below.
For Thompson Seedless.
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Average price paid to farmers for this variety of grapes around Rs 35.00 Average
weight of bunch recorded is 225 gm and the brix content is around is18.00%Size
of the berry was 16.35 and the diseased produce received at the pack house is less
than 1%.
For Sharad Seedless Variety.
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INDEX
Sr.no Chapters Page
no.1 Chapter -I
1.1 Introduction 91.2 Adani Group Profile 111.3 Grapes 131.4 Market Scenario 141.5 Period of price fluctuation 14
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1.6 Objectives of research 162 Chapter - II
2.1 Export Of Grapes 182.2 Export Specification 19
2.3 Export Specification Of DifferentCountry 22
3 Chapter III
3.1 Weight Of The Bunch 253.2 Average Size Of The Grapes 26
3.3Average Brix Of The Grapes 273.4Price Paid To The Farmer During The Season 28
4 Chapter IV
Chain of events in Grapes export
4.1. Residue Analysis 314.2. Harvesting 31
4.3 Knitting and Sorting/ Grading 31
4.4 Weighing and Packing 32
4.5 Pre cooling and Cold Storage 33
4.6 Palletization 33
4.7 Before palletization 33
4.8 Loading of container 35
4.9 Procedure of Shipment 36
4.10 Post Landing Cost: 37
5 Chapter V
6 Conclusion 41
7 Suggestions
8 Exports
9 Imports
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10 Questioner
11 Preface
12 Hypothesis
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CHAPTER I
INTRODUCTION,
MARKET SCENARIO,
PRICE FLUCTUATION,
EXPORT SPECIFICATION
OF GRAPES.
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1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tons)
and Vegetables (90.8 Million tons ) in the world ,contributing 10.23%and
14.45%of the total world production of fruits and vegetables respectively .India
has made a fairly good progress on horticulture Map of world with total annual
production of The horticulture crops touching over 149 million tons India has
been bestowed with wide range of climate and physio-geographical conditions and
as such is most suitable for growing various kinds of horticultural crops such as
fruits, vegetables, flowers , nuts , spices and plantation crops.
With the focused attention given to horticulture, there has been spectacular
change in terms of adoption of new technologies, production and availability of
horticulture products. Fruits and vegetables constitute around 10 per cent of the
total agriculture production of the country. This sector offers enormous potential
for export.
According to FAO, the export of fruits from India in 2003-04 US $166
million and that of vegetables US $ 205 million .Indias export of fruits and
vegetables is more concentrated towards Asian region. Asian region accounted for
75% of total fruits and vegetable export 2003-04.The export to European and
American market is very less due to imposition of stringent quality measures. But
in the last 3-4 year the export of fruits and vegetable Europe has been increasing
with the adoption of Good Agriculture practices ( GAP ) by Indian farmer. Also
the APEADA is taking active role in establishing many quality testing laboratories
and adequate documentation protocol across the country to boost the export of
perishables.
Maharashtra is the one of the largest state In the production of fruits
and vegetable contributing nineteen percent of the total fruit production in
the country. The state produces around nine million tones of fruits having
productivity of 16 MT per hectare of , which is fairly good when compared
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to countrys average Of 12 MT. it grows commodities like grapes,
pomegranate, mango, sapota , oranges ,lime, strawberry, jackfruits etc in
large quantity .The state holds prestigious position in vegetable production
contributing 5% of the production and stands 7 in the country. Total
production of vegetables in Maharashtra is approximately 5 million tones.Because of close proximity to Mumbai port and metropolitan market .the
state enjoys the comparative advantage in export as well as long distance
In certain commodities the state has occupied unique and prestigious
position , e.g. mango ,pomegranate, grapes , onion.
Highly perishable nature of his fruits and vegetable make their marketing
system more costly and complex. Timely and procurement of fruits and
vegetable in bulk is of immense importance for exporters. Transportationplays an important role in fruits and vegetable marketing.
The exporter has to meet the specific qualitative and quantitative
requirements of the importer. The packaging, residue testing, documentation
and phyto sanitary certification has to be met in order To export.
So establishing an efficient backward linkage is must for exporting fruits
and vegetables.
1.2 ADANI GROUP PROFILE
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Adani Group, founded in 1988, is one of the fastest growing businesshouses in India.
The Adani Group has its roots in its flagship company, Adani Enterprises
Ltd. (formerly known as Adani Exports Ltd.), which has been established byMr. Gautam S Adani in 1988 as a partnership firm with an initial capital ofRs. 5 lacs.
Through his entrepreneurial vision, global aspirations, hard work, qualitystandards and customer centric approach, Mr. Gautam Adani hastransformed the Group in one of its kinds which has crossed the totalrevenue of INR 180 billion on March 31, 2007.
Other company of adani group-
1- Adani Agrifresh Ltd2- adani wilmar ltd3- adani logistics ltd4- adani enterprise ltd
ADANI AGRI FRESH LTD.
Prolonging the shelve life of fruits and vegetables and there by creating a
business plan.
Project conceived by June 2005 and completed in 14 months, 3 CA storeswithin a year including procurement of land.
FOCUS - Strong backward integration for product availability.
Developing procedures and systems in both infrastructure and manpower tomeet the world standards.
To tap potential of Indian market.
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VISION - To provide safe, hygienic, and fresh quality fruits.
Investment in technology and infrastructure to build and integrated supply
chain of fruits and vegetables.
Build strong network with farmers, right from their growing by assistingthem in technology.
To bring transparent product handling system that will benefit farmers.
ACHIEVEMENT- Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric
pack houses in Shimla district at three different placed Viz. Rampur, Sainjand Rohru.
First time in India introduced Controlled Atmospheric storage facility.
First time in India introduced Optical Sorting-Grading facility for fruits.
Procured 18000 MT apples from Shimla and Kinnor district of HimachalPradesh.
Set up strong marketing network in 30 Major towns of India.
Introduced first brand Farm Pik in apple.
PROPOSED PLAN FOR MAHARASHTRA
During very first season (2007-08) Adani Agrifresh Ltd. exported 50Container of Grapes to European Nations from Nashik District.
.Other products that company is planning to export are Pomegranate, Onion,Banana from Maharashtra. .
1.3 Grapes
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Maharashtra is a leading state in production of Grapes in whole country. In regards
to agriculture land under grapes cultivation & grapes production, Nasik & Sangli
districts are at forefront in the state. Apart from these ,grapes are also grown in the
districts of Ahmednagar, Pune , Satara , Solapur and Osmanabad. Now a days
grapes re produced in Latur district of Marathwada. However ,Nasik and Sanglidistricts are ahead in the production of grapes in a scientific manner.
Figure
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Area under grapes in Maharashtra is 35236 ha, out of which Nasik and Sangli
districts contribute 24174 ha and 8255 ha respectively. Maharashtra produces
around 988722 MT of grapes annually, in which Nasik and Sangli districtscontribution is 500406 MT and 231635 MT. Total export of Grapes from from
India is 26793.83 MT valuing 105.89 crores out of which nearly 80 % is exported
from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless
,Tas-e-Ganesh , sharad seedless, Flame seedless and Sonaka.
1.4 MARKET SCENARIO
Nasik district is the largest producer and export of Grapes in Maharashtra. The
main growing are Dindori , Nasik ,Niphad, Pimpalgaon Basvant and Chandwad.
Export of grapes from nasik stands at 7613.63 MT during 2003-04. Usually very
little quantity of export quality grapes comes to APMCs. Export grapes are Usually
Procured at the fare gate . Traders and exports go directly to farms 20-25 days
before harvest and they fix a procurement price based on the grade.
1.5 PERIOD OF PRICE FLUCTUATION:
Generally the price of grape depends on the production, harvesting period and
demands in market of other part of India .
Low price : Nov to Dec with the average price around Rs.7 to 9/kg
Peak price : April-May with average price around Rs.12 to 15/kg
In this market some variety always fetch good price . A general price for varieties
can be given below : (Make separate colomb indicating Export and local price)
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Variety Price Rs/kg
Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35
Thompson seedless 15-20Flame seedless 25-28
Sangli:
It is second largest grapes growing and exporting district in Maharastra.Exportquality grapes wont come to here. So exporters and traders go directly to farmers
orchard. The important growing regions are Malegaon, Miraj, Nimni, Savlaj and
Tasgaon. Nearly 250-300 containers of grapes will be exported this year from
Sangli district alone. During last year (2007-08) the farm gate procurement price of
export quality grapes fluctuated with the time like this.
February ends 35-40 /kg
March15-30: Rs 50 / kg
March 30 onwards Rs 60-65/kg
Solapur Market :
Solapur is also very big market for grapes .Grapes arrival is from Solapur, Sangli,
and Baramati and from regions of Kolhapur surrounding Sangli. Distribution is
mainly to Bihar,Bengal,Orisa, and Southern Indian states. There are many Bihar
and Bengal traders operating in this market. In this market grape price depends on
variety of grape. The prices of some important varieties are given below. Nearly
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80% of the production is Thompson seedless and 10-15% is Sharad and flame
seedless. Rest is from other varieties.
Variety Price Rs/kg
Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35
1.6 OBJECTIVES OF RESEARCH
Objectives 1
To study the quality assurance of grapes at the time of procurement at the pack
house
Sub objectives
1. To find the average size of Berries during the season
2. To find the average brix of the berries exported this season
3. To find the average bunch weight of the different varieties of grapes.
Objectives 2
To find the average price paid to the farmer.
Sub objective:
1. To find out the price to the farmer with respect to the quality of grapes and the
time of procurement.
2. To study whether the price is determinant of demand of the grapes or the
quality of the grapes.
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CHAPTER-II
EXPORT OF GRAPES
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2.1 EXPORT OF GRAPES
Major export is to Middle East, UK, Holland, and Germany.
Varieties in Demand:
Name of the Varity Description Berry size Harvesting period
THOMPSONSEEDLESS
Round berriesgreen color, Seedless variety.
16 mm to 18 mm January to April
SONAKA Elongatedberries,green lessvariety.
16 mm to 18 mm January to April
SHARADSEEDLESS
Roundberries,Blackishred colour,seedlessvariety.
16 mm to 18 mm January to April
FLAMESEEDLESS
Roundberries,Blackish
red colour,seedlessvariety.
16 mm to 18 mm January to April
Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and
Middle East.*Thompson seedless constitutes nearly 95% of grapes export to
Eupore and UK.but for dubai and Middle East market ,along with Thompson
seedless ,Sharad seedless ,Sonaka,2-A clone and Tas-e Ganesh are preferred.
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2.2EXPORT SPECIFICATION (HOLLAND)
Indian white Thomson seedless GRAPES - SPECIFICATIONSHealthy intact Fresh White Seedless Grapes
A Variety Thompson
B General for the whole lotUniform in terms of class, origin,size,colour anddegree in ripeness.
Sr.
no.Characteristic Description
1 Temperature
Precooling, storage and transport about 0 - 1
degree Celsius
2Berry Colour, twoseparations
Opaque milky pale green colour or amber. Not darkgreen or glassy.
.
3Berries - GeneralAppearance with 0 %tolerance.
Berries must be fully developed, ripe, turgid( firm ); not bladdery, wilted, over mature; noshrivelled, deformed or poorly pollinated berries.Colour should be even through the bunch and acrossthe box. No wrinkling of skin or sunken area around
pedicle, watercore.No abnormal exterior moisture.
Free from decay-decomposition of fungusdevelopment.
Free from decay-internal insect infestation orinternal damage.
4Berries-GeneralAppearance with 3%tolerance
Free from slip skin, boytritis, injuries, shrivelling /witting, cold damage, unspecified internal qualitydefects, skin damage, wind rub marks, unspecifiedappearance defects.
5Berries-GeneralAppearance with 5 %tolerance
Free from split berries, mould on stems, sulphurburn, visible residues, loose berries.
6Berries-GeneralAppearance with 8 %tolerance
Free from sunburn.
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7Berries-GeneralAppearance with 10 %tolerance
Free from dry stems and dirt.
Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a
representative quantity taken on an random basis out of the entire deliveryAll Quality defects in the above mentioned, may not exceed 5 % provided that the
individual deviations are within their stipulated limits
8 Skin Blemish
Evenly coloured skin should be free from pestdamage or physical damage. No bruising, hailmarks, splits, cracks, open cuts or rots, sunburn,sulphur bleaching
9 Vine ConditionStems and pedicles fresh and green, not dry andbrown.
10 Shape/Dimensions
Bunch - shape typical of variety; not straggly or
over tight;- round or slightly oval, not excessivelyelongated.
Organoleptic
11 FlavourSweet and refreshing flavour balanced by a hint ofacidity.
12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.
13 Aroma None, free from any foreign odour
Physical
14 Sugar Content minimum - 16 degree Brix. Max 20 Brix15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1
16Berry Size, printed on theLabel
Minimum 15 mm, as Regular, Large 16- 18 mm,Extra Large 18-20 mm. XXL.20 mm and up. Targetaverage16 - 18 mm.
17 Dropped BerriesMinimal dropped berries (shatter) in packaging:tolerance up to 4 % by weight, Target zero.
18 Pouch weight
9 Pouches of min 510 gms. ( by packing ) per 4.5kg carton. Preference of 1 bunch
per bag, with a tolerance for 2 bunches ofeven weight in 1 bag, No single bunch to weigh lessthan 200gms.
19 Punnet weight 10 punnets of min 520 gms ( by packing) per 5 kgcarton. Max three bunches perpunnet with a minimum weight allowed to about50gms for third bunch for adjustment of weight
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purposes.
20 Insects, SpidersNo insects, spiders or mites to be present in theproduct or packaging.
21 AdditionalInformation
All produce supplied to this specification musthave been grown in
compliance with the Apeda NRC document and
relevant GlobalGap
protocol.
22 Pesticide residues As per European MRL's limits of 1-9-2008.
The APEDA authorised Laboratory are ISO 17.025certified pesticide
residue field tests report codes are traceable via the
packing list.
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EXPORT SPECIFICATION OF DIFFERENT COUNTRY
Variety Middle East Holland /Germany U.K
THOMPSONSEEDLESS
Berry Size: 15mm Colour white/amber. TSS 17-18 brix
Berry Size:16mm Colourwhite /amber.TSS >18 brix
Berry Size : 18mm ColourMilky white/amber. TSS >18brix. Novariation in size
SHARADSEEDLESS
Berry Size : 15mm Colour
Black
Berry Size : 16mm Colour
Black
Berry Size : 18mm Colour
FLAMESEEDLESS
Berry Size : 16mm Colour Pink
Berry Size : 18mm Colour Pink
Packing 4.5 kg / 9 kgpouch packingand 5 kg punnet
packing
4.5 kg / 9 kgpouch packingand 5 kg punnet
packing
Storage Temp . 0-1 C 0-1 C 0-1 C
Days required toreach DestinationFrom JNPT
7-8 Days 21 days 21 days
If necessary sample should be forwarded to the importer and it should be
representative.
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CHAPTER-III
MAJOR QUALITY PARAMETERS
FOR EXPORT OF THE BERRIES AT
POST HARVESTING
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Three major quality parameters for export of the berries at
post harvesting are-
1. Size of the grapes
2. Bricks in the produce
3. Contamination due to pests.
Thompson seedless contributed nearly 90%of the total exported the European
Union and UK while Shared Seedless was the major variety that was exported
to Middle East.
Ll. Quality of Thompson variety of seed with respect to the period of the
procurement is shown in the graphs below.
Quality of grapes at the time of reception.( Thompson
Seedless )
Week Price paid
to farmer
Average
weight of
one bunch
Average
Size
Average
Brix
Diseased
grapes ( qt
in Kg )
4 38.54 290.45 16.5 17.98 Less than 1 %5 39.28 270.45 16.58 18.1 Less than 1 %
6 39.12 286.46 15.43 18.4 Less than 1 %
7 38.79 257 15.38 17.93 Less than 1 %
8 41.40 294.74 15.67 18.14 Less than 1 %
9 39.20 298.9 15.9 18 Less than 1 %
10 39.67 311.5 15.6 18.2 Less than 1 %
11 38.47 318 15.3 18 Less than 1 %
12 41.83 325.1 15.8 17.8 Less than 1 %
13 42.34 323.4 17 18 Less than 1 %14 41.90 288.6 17 17.6 Less than 1 %
Total 40.05 296.78 16.01 18.01 Less than 1
%
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3.1 WEIGHT OF GRAPES
From the table it can be established that Thompson varieties of grapes are
generally available after the January end of from the period of the February. In the
start of the season the average bunch weight is less as the grapes do not get muchsize and are harvested. Each berry of his variety weight around 4-6 gms and each
bunch has nearly 70-80 berries.
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3.2 AVERAGE SIZE OF THE GRAPES
From the table 2.2 it can be established that the size of the produce is less in the
start of the season as compared to the mid and the end of the season. From the
below graph it is easily seen that the size of the fruit is height at end of the seasonwhich implies a better quality according to UK and EU Standards
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3.3 AVERAGE BRIX OF THE GRAPES
From the table 2.3 it can be clearly seen that there is not much variation in the brix
of the fruit during the whole season. Brix of the fruit also depend on the irrigation
of the field .if there is rain or the just irrigated then the average brix in the grapes
will increase and make it unsuitable for the grape export. More brix means more
sugar content in the grapes which increase its chance contamination during
transportation of grapes
.
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3.4 PRICE PAID TO THE FARMER DURING THE
SEASON.
Observation: From the table 2.4 it can be seen that the farmer are getting the lower
price at the start of the season and price go high as the season comes to end. The
price of the grapes depends mostly on the size of the grapes the demand and supply
of grapes in the market.
Inference: it can be inferred from the table 2.4 that the size of produce is giving
better returns to the farmer at the end of season. It can also be inferred that in the
late season due to the constant demand and decreased supply from the domestic
market the price of grapes are going on the higher side.
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Thus it can be seen that the quality norms are very stringht for the export to the
countries of European Union and UK. The processing cost for the exports to these
countries is very high and the risk of rejection is also very high so it is very risky
business to exports to these countries. It is very high best on the part of field fresh
that there procurement procedure is very good that the diseased material reaching
the pack house is always less than 1% which symbolizes good procurement
practices and good logistics operation at Field Fresh Foods.
Recommendations:
Company can also plan to supply the fruits to the local markets are also fetching
good prices in the metropolitan cities .Also the transportation cost and quality
requirements are less so the margins on the grapes will also increase and company
will also marks its local presence.
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Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT
CHAIN OF EVENTS IN GRAPES EXPORT
The varity of grapes that is exported from the Nasik region mostly this time
is Sharad Seedless and Thompson Seedless .Out of the to varieties Sharad is the
black variety and Thompson Seedless is green variety of table grapes .Sharad takes
100-110 days to harvest after the flowering stage so the yield starts from the month
of late December.It is mostly exportd to ME as the quality assurance parametees
are less binding on the Middle East than to the European Union.
4.1. Residue Analysis:
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Sampling of grapes for residue analysis is usually done 10-20 days before
harvest .5 kg sample is taken randomly from each farm, in which 3 kg is crushed
for testing immediately and 2 kg sample is kept in cold storage foe 45 days till the
consignment reach destination without any hindrance. There are eight authorized
institutions throughout India that can conduct residue analysis test .The list of theseauthorized residue testing institutions are given in the annexure. For this test,they
charge Rs.300/ sample for one pesticide and Rs 7500/ sample for all 87 chemicals.
APEDA will give 50% subisidy foe reside analysis. This year National
Horticulture Mission ( NHM) has given 100% subsidy for residue analysis test of
all horticultural produce. Residue analysis report will be given to farmers within 6-
8 days. The residue analysis test is done for 92 chemical.
4.2. Harvesting:
Harvesting is done in morning hours based on the specifications of importer.
Weighing is done immediately. The quanity harvested is entered in farmers
registry.
4.3 Knitting and Sorting/ Grading: Afterwards knitting of non uniform and
water berries is done followed by sorting and weighing as per importers
requirement.Usally Export specification will be as follows.
4.4 Weighing and Packing
Grapes are usually packed in three types of Cardboard boxes for export
Each box will have to be packed with grape guard, tear off liner and bubble
sheets for Europe. For Middle East, each box has to be packed with papercuttings ,along with grape guard tape to hold two boxes.
a) 5 kg Punnet packing : In this 500 gm transparent punnets are used.
Totally 9-10 punnets are needed in each 5 kg Card board box. The
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punnets are imported from South Africa. And Itly From last one year UK
and European imports are demanding grapes in punnet packing only.
b) 4.5 kg Pouch packing : 9 plastic pouches of approximately 500 gm are
kept inside 4.5 kg card board boxes. The demand for this type ofpackaging has decreased considerably with arrival of punnets.The cost of
pouch will be around 50 paise each.
c) 9 kg Pouch packing : 17-18 plastic zip pouches of appoximaely 500 gm
are kept inside 9 kg card boxes. The demand for this type of packaging
has decreased considerably with arrival of punnets.
Cost of packing for UK and EU
Cost centre of
packing
5 kg Box 40 ft container
(14.5 MT)
Cost box @Rs.5.5 /kg
27.5 80000
Punnet @Rs 5/punnet
50 26100
Grape [email protected]/kg
8.3 24070
Bubble sheet @16paise/kg
0.8 2320
Tear off Liner @39 /kg
1.95 5655
Total 88.75 138145
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4.5 Pre cooling and Cold Storage : Pre cooling is done at 0-9 C for 6-
8hours.Usually cold stored for 5-8 days depending on export suitability. For
storing the produce for 6-8 days , Rs 5 kg is charged.
4.6 Palletization: Wooden pellets are used to keep card boxes with in the
containers. Grapes are exported in 40 ft container. Each container can hold 20
pallets and carries 14.5 MT of grapes.
Package One pellet 20 pellats/ container
9 kg Card board box 80 boxes 1600 boxes
5 kg Card board box 120 boxes 2400 boxes4.5 kg Card board box 3200 boxes 3200 boxes
4.7 Before palletization,
a) AGMARKcertification is compulsory, which is issued by Directorate of
Marketing and Inspection officer of concerned area. AGMARK
certification costs around 0.2 % of the FOB value. Usually this charge
comes to around Rs.3000/ container.
b) Fumigation certificate: As wooden pallets are used to keep bpxes in
container .fumigation certificate is necessary for grape export .This will
be issued by Private certified Pest control agency or pellet supplier
fumigation charge is Rs 20-25 / pallet. So for a 40 ft container containing
20 pallets, this charge may end up at Rs 400-500.
c) Phyto Sanitary certificate :( PSC) It can be availed from directorate of
plant protection, Quarantine and Storage, Ministry Of Agriculture.
Usually in Maharashtra District Superintending Agricultural Officer
(SAO ) will look after procedures, For issuing PSC usually 0.2% of the
FOB value is charged.
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Following information is collected from Exporter for issue of PSC for
Grapes:
1. Application
2. Copy of Import Permit
3. Letter of credit/ agreement
4. Performa invoice
5. Copy of Import Export code
6. The white and green copy of residue test report
7. Container loading sheet/Packing list.
8. Copy of declaration by farmer
9. Farm inspection report
10.Exporters decalaration.
11.Pack house recognition certificate issued by APEADA.
12.Self- certified copy of the certificate of agmark Grading (CAG) ISSUED BY
the concerned Office of Marketing and Inspection.
13.A Challan of prescribed fess paid for inspection.
d) Stuffing Permission: It is issued BY Central Excise and Customs
department. Stuffing permission is the permit to export a good to a
particular place / nation from central excise. It is life time permission.
Quality parameters such size, packing, temperature requirements should
be according to the importers specifications. It is better to get
requirement from the importer in writing in Purchase order. Pack the
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material strictly as per the sample provided by the importers
requirement.
4.8 Loading of container: Refer container usually comes from JNPT to the
farm gate. While loading the grape to container, Central excise officer will
inspect the commodity as per the purchase order and seal the container. Once
the container is sealed, it can not be opened by anybody till it reach its
destination.
Usually pack house order charge Rs 7/ Kg for labor, harvesting, transport to
cold storage sorting, grading, packing loading to container. This Rs 7/ kg
includes commission agents/packers margin of Rs.2-2.5/kg .It does not
include the package material cost, cold storage costs and diesel and
electricity charges. Totally the procurement cost comes roughly to around
Rs 12/ Kg including cold storage charges.
Transportation Charge to carry a 40 ft refer container to
JNPT, Mumbai.
Sr . No From Transportation cost
1 Nasik Rs 20000/ container
2 Pune Rs 18000/ container 3 Sangli/ Tasgaon Rs 25000 / container
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4.9 Procedure of Shipment :
Services of customs House Agents ( CHAs) to be reserved to carry out
necessary logistic and paperwork required for export. Job like space for
exports, order for the container, custom clearance of origin etc .is carried outby CHA. An efficient and competent CHA should be appointed. Following
is the list of documents to be provided to CHA.
- Letter of Credit (if available )
- Invoice
- Certificate of origin.
- Phyto sanitary certificate
- Packing List ( if items are more )
- Customs / Excise Formalities and charges.
For agro exports, excise duty is not applicable. Customs Duty @ 1% with
respect to the cost of the invoice is charged while processing the documents.
- Terminal Handling charges for 40 ft container is Rs.15000
Sea freight From JNPT to different foreign Ports:
- To UK and EU: Rs.137690
- To Middle East: Rs.68841
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4.10 Post Landing Cost: Post landing cost includes unloading, cold storage,
transportation, import duty and importers commission for the year 2008-09.
Country Rs/kg
UK 28.22
European Union 26.20
Dubai 12.06
Importers commission
- EU -8 %
- Middle East -5%
Residue Analysis test in the importing country costs around 25000/ sample
This test is done only in UK and European country. If rejected the labour
charge and dumping costs should be paid by the exporter.
Mode of Payment:
Normally in the trade of agro exports (expect onion, rice and other cereals
mango pulp) importer never provides Letter of credit ( L/C ) Such export is
done on consignment basis ( payment as per actual sales ) Exports get thepayment after deducting port charge, transportation and commission etc .of
the importing country .In certain country export is undertaken on the fixed
rates. Market Credit of the importer should be checked before entering into
the trade. Importers credit can be checked by international credit
organizations like Dun and Bradstreet. Export Credit Guarantee Corporation
of India( E C G C) also undertakes such type of credit certification work .
Sales proceed gets deposited in the bank in foreign currency. Export
documents including Export Promotion ( E P ) copy should be retained by
exporter.
The profit involved in export of Grapes
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Remove this part it doesnt match..The grapes are generally exported 40 ft. container which can hold 20 pallets.
The total capacity of 40 ft. container is 14500 of Grapes.
The profit involved In Export of Grapes.
The grapes are generally exported in 40 ft. container which can hold 20 pallets.
The total capacity of 40 ft container is 14500 kg of Grapes.
Profit involved in Exporting 14.5 MT Grapes.( 40 ft container)
Particulars UK EU Dubai
Cost of grapes @35/ kg to Europe &
Rs 28/kg for Dubai
551000 551000 406000
Pre cooling and cold storage
@Rs.5/kg
72500 72500 72500
Handling and Packing cost @ Rs.7/kg 101500 101500 101500
Cost of packing material 138145 138145 138145
Transportation charge to JNPT 15000 15000 15000
Sea freight for 21days to Europe & 7
Days to Dubai.
137690 137690 68841
Terminal handling charge 15000 15000 15000
Customs charge @ @1 of Invoice. 15000 15000 10000
Residue analysis test ( 50 % subsidy
from APEDA)
3700 3700 ---------
PSC 250 250 250
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Fumigation 400 400 400
AGMARK @ 0.2 % OF Invoice. 3000 3000 ----------
Post landing testing of grapes @
25000/ Sample
25000 25000 ------------
Post landing charges 409287 380000 175000
Total cost 1487472 1458185 970861
Price realization at the destination
Market
1754500 1667500 1087500
Expected profit/ container. 267028 209315 98639
CHAPTER V
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CONCLUSION
CONCLUSION
The advent of new varieties having high consumer preference and technical
advancement in cultivation has made this crop more popular.
Owing to the nutritional and medicinal values of the fruits, there is
preference among the consumers in the domestic and international markets.
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Thomson seedless and sharad seedless variety is best suited for cultivation in
the tropical areas. This variety is one of the best varieties suitable for export
purpose and it is gaining popularity among consumers.
Most of the Grapess produced is consumed locally and about 1 per cent isexported. The exports have not been substantial since the international
standards were not known.
Of late, Indian grapes have penetrated into the European Union since
suitable varieties conforming to international standards are being produced.
Karnataka has exported about 2000 MT to other countries during the last
few years. There is potential for export to the United State of America also.
Diseases such as Powdary mildew, Downy Mildew, etc., have created
problems in obtaining economic yields.
Proper varietal selection, crop and post harvest management, infrastructure
such as cold chain, facilities for marketing etc, will augment the cultivation
of quality grapes and will help in increasing the exports to a tune of about
20,000 30,000 MT tons.
In this background, India can definitely make a dent in grapes trade in the
world market.
Remarks
Add,
Compititors in the market and there purchase / pricing strategy,
Entry level and packout level quality parameters./documents filled.
Flow chart of total export process.
Just concentrate on Thompson seedless as it accounts for 90 % of
Export to Europe.
Packhouse requirements for global gap Audit to get quality produce.
grape net and Global Gap System./Process.
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Quality of grapes starts from field hence start process from
identification of fieldSOP.