export project on grapes final
TRANSCRIPT
Dissertation Project
On
Analysis of Export Procedures for Grapes
PREPARED BY
Mr. Merro Don Thomas
B.F.T (Foreign Trade)
PGPM
June 11, 2010
A report Submitted in partial fulfillment of
The requirements of
2-Year Full Time Post Graduate Programme in Management
(PGPM )at
INSTITUTE OF MANAGEMENT AND DEVELOPMENT
NEW DELHI
1
Declaration.
I hereby certify that the following work embodied in this Dissertation Project is the result of original research and has not been submitted for a Post Graduate Programme to any other University or Institution.
Name:-Merro Don Thomas.
Batch 18
PGPM (International)
(Signed) ___________________________
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Acknowledgements
I would like to thank one and all who have taken time off their busy schedule to help in pursuing my Project and without whose help it would not
have been possible for me to prepare this project report. I would like to thank them for their advice and aids in numerous ways and their unending
support right from the stage the idea for this project was conceived.
It gives me a great pleasure to accord my sense of appreciation to my corporate guide Mr.
for providing me the relevant information, documents and guidelines for my project. . I am deeply indebted him for the exposure given to me
especially with regard to meeting the users requirement, understand the problems and the working scenarios.
I like to thank Mr. Abhishek Chaudhary, the Hon’ble Vice-Chairman of my esteemed Institute who provided me all the required facilities and
support for undertaking this Project.
I would like to make a special mention of my parents, who are
my source of inspiration and support in every step of my life so far.
I am also thankful to each and every person concerned directly
or indirectly with this project.
Merro Don Thomas.
MBA (4rd semester).
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INDEX
Sr.no Chapters Page no.
1 Chapter -I1.1 Introduction 81.2 Grapes 101.3 Market Scenario 111.4 Period of price fluctuation 11
2 Chapter - II2.1 Export Of Grapes 152.2 Export Specification 162.3 Export Specification Of Different Country
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3 Chapter III3.1 Weight Of The Bunch 223.2 Average Size Of The Grapes 233.3 Average Brix Of The Grapes 243.4 Price Paid To The Farmer During The Season 25
4 Chapter IVChain of events in Grapes export 4.1. Residue Analysis 28
4.2. Harvesting 28
4.3 Knitting and Sorting/ Grading 28
4.4 Weighing and Packing 29
4.5 Pre cooling and Cold Storage 30
4.6 Palletization 30
4.7 Before palletization 30
4.8 Loading of container 32
4
4.9 Procedure of Shipment 33
4.10 Post Landing Cost: 34
5 Chapter VConclusion 37
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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 is 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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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 .India’s 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 to country’s 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
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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. Transportation plays 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.
PROPOSED PLAN FOR MAHARASHTRA• During very first season (2008-09) 350 Containers of Grapes were to
European Nations from Nashik District alone.
• .Other exports from Nashik District are Pomegranate, Onion, and Banana etc.
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1.2 GrapesMaharashtra 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 day’s grapes are produced in Latur district of Marathwada. However, Nasik and Sangli districts are ahead in the production of grapes in a scientific manner.
Figure
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Area under grapes in Maharashtra is 35236 hectare (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 districts contribution is 500406 MT and 231635 MT. Total exports 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.
1.3 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.
1.4PERIOD 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:
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Variety Price Rs/kg Sonaka 25-30 Tas-e-Ganesh 10-15 Sharad seedless 25-35 Thompson seedless 15-20 Flame seedless 25-28
Sangli:
It is second largest grapes growing and exporting district in Maharastra. Export quality grapes won’t come to here. So exporters and traders go directly to farmer’s 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 (2008-09) the farm gate procurement price of export quality grapes fluctuated with the time like this.
February end’s 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 80% of the production is Thompson seedless and 10-15% is Sharad and flame seedless. Rest is from other varieties.
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Variety Price Rs/kg Sonaka 25-30 Tas-e-Ganesh 10-15 Sharad seedless 25-35
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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
THOMPSON SEEDLESS
Round berries green color, Seed less variety.
16 mm to 18 mm January to April
SONAKA Elongated berries, green less variety.
16 mm to 18 mm January to April
SHARAD SEEDLESS
Round berries, Blackish red color, seedless variety.
16 mm to 18 mm January to April
FLAME SEEDLESS
Round berries, Blackish red color,Seedless variety.
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 Europe 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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2.2 EXPORT SPECIFICATION (HOLLAND)
Indian white Thomson seedless GRAPES - SPECIFICATIONS
Healthy intact Fresh White Seedless GrapesA Variety Thompson
BGeneral for the whole
lotUniform in terms of class, origin, size, color and
degree in ripeness. Sr. no.
Characteristic Description
1 Temperature Precooling, storage and transport about 0 - 1 degree Celsius
2Berry Color, two
separationsOpaque milky pale green color or amber. Not
dark green or glassy. .
3Berries - General
Appearance with 0 % tolerance.
Berries must be fully developed, ripe, turgid (firm); not bladdery, wilted, over mature; no shriveled, deformed or poorly pollinated berries. Color should be even through the bunch and across the box. No wrinkling of skin or sunken area around pedicle, water core.
No abnormal exterior moisture.
Free from decay-decomposition of fungus
development.
Free from decay-internal insect infestation or
internal damage.
4Berries-General
Appearance with 3 % tolerance
Free from slip skin, botrytis, injuries, shriveling / witting, cold damage, unspecified internal quality defects, skin damage, wind rub marks, unspecified appearance defects.
5Berries-General
Appearance with 5 % tolerance
Free from split berries, mould on stems, sulphur burn, visible residues, loose berries.
6 Berries-General Appearance with 8 %
Free from sunburn.
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tolerance
7Berries-General
Appearance 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 delivery
All Quality defects in the above mentioned, may not exceed 5 % provided that the individual deviations are within their stipulated limits
8 Skin Blemish
Evenly colored skin should be free from pest damage or physical damage. No bruising, hail marks, splits, cracks, open cuts or rots, sunburn, sulphur bleaching
9 Vine ConditionStems and pedicles fresh and green, not dry and
brown.
10 Shape/DimensionsBunch - shape typical of variety; not straggly or
over tight;- round or slightly oval, not excessively elongated.
Organoleptic
11 FlavorSweet and refreshing flavor balanced by a hint of
acidity.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 Brix
15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1
16Berry Size, printed on
the Label
Minimum 15 mm, as Regular, Large 16- 18 mm, Extra Large 18-20 mm. XXL.20 mm and up. Target average16 - 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 4.5 kg carton. Preference of 1 bunch per bag, with a tolerance for 2 bunches of even weight in 1 bag, No single bunch to weigh less than 200gms.
19 Punnet weight 10 punnets of min 520 gms (by packing) per 5 kg carton. Max three bunches per punnet with a minimum weight allowed to about 50gms for third
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bunch for adjustment of weight purposes.
20 Insects, Spiders No insects, spiders or mites to be present in the
product or packaging.
21Additional
InformationAll produce supplied to this specification must
have 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 authorized Laboratory are ISO
17.025 certified 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
THOMPSON SEEDLESS
Berry Size: 15 mm Color white /amber. TSS 17-18 brix
Berry Size: 16mm Color white /amber. TSS >18 brix
Berry Size: 18 mm Color Milky white /amber. TSS >18 brix. No variation in size
SHARAD SEEDLESS
Berry Size : 15 mm Color Black
Berry Size : 16 mm Color Black
Berry Size : 18 mm Color
FLAME SEEDLESS
Berry Size : 16 mm Color Pink
Berry Size : 18 mm Color Pink
Packing 4.5 kg / 9 kg pouch packing and 5 kg punnet packing
4.5 kg / 9 kg pouch packing and 5 kg punnet packing
Storage Temp. 0-1 C 0-1 C 0-1 C
Days required to reach Destination From 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 much size 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 season which 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 stringent 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.
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Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT
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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 exported to ME as the quality assurance parameters are less binding on the Middle East than to the European Union.
4.1. Residue Analysis:
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 these authorized 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% subsidy 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 quantity harvested is entered in farmer’s 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.
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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 paper cuttings, 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 punnets are imported from South Africa and Italy 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 of packaging has decreased considerably with arrival of punnets.The cost of pouch will be around 50 paisa each.
c) 9 kg Pouch packing: 17-18 plastic zip pouches of approximately 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 guard @1.66/kg
8.3 24070
Bubble sheet @16 paise/kg
0.8 2320
Tear off Liner @ 1.95 5655
30
39 /kg
Total 88.75 138145
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/ container9 kg Card board box 80 boxes 1600 boxes5 kg Card board box 120 boxes 2400 boxes4.5 kg Card board box 3200 boxes 3200 boxes
4.7 Before palletisation,
a) AGMARK certification 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 boxes in container .fumigation certificate is necessary for grape export .This will be issued by Private certified Pest control agency or pellet supplier
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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.
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.Exporter’s declaration.
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.
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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 material strictly as per the sample provided by the importer’s 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 cannot be opened by anybody till it reaches 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 include ‘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
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1 Nasik Rs 20000/ container2 Pune Rs 18000/ container3 Sangli/ Tasgaon Rs 25000 / container
4.9 Procedure of Shipment :
Services of Customs House Agents (CHA’s) to be reserved to carry out necessary logistic and paperwork required for export. Jobs like space for exports, order for the container, and custom clearance of origin etc .is carried out by 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:
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- To UK and EU: Rs.137690
- To Middle East: Rs.68841
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 the payment 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. Importer’s 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
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documents including Export Promotion (E P) copy should be retained by exporter.
The profit involved in export of Grapes.
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
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Residue analysis test ( 50 % subsidy from APEDA)
3700 3700 ---------
PSC 250 250 250
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
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CHAPTER V
CONCLUSION
CONCLUSION
The advent of new varieties having high consumer preference and technical advancement in cultivation has made this crop more popular.
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Owing to the nutritional and medicinal values of the fruits, there is preference among the consumers in the domestic and international markets.
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 Grapes produced is consumed locally and about 1 per cent is exported. 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.
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