mts 01 report @ arvind ltd

77
Market Research for Organic Staple Business in Domestic and Global markets for Arvind LtdSubmitted to Mr. Mahesh Ramakrishna Head Agribusiness, Arvind Ltd, Ahmadabad A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR MASTERS IN RURAL MANAGEMENTSubmitted by: Anjaney Kumar Sunil Kumar KIIT SCHOOL OF RURAL MANAGEMENT BHUBNESWAR Management Traineeship Segment (MTS) I

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project work done by Anjaney kumar and Sunil kumar in Arvind Ltd.during 4th July 2011 to 3rd September 2011.

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Page 1: Mts 01 report @ arvind ltd

“Market Research for Organic Staple Business in Domestic and

Global markets for Arvind Ltd”

Submitted to

Mr. Mahesh Ramakrishna

Head Agribusiness,

Arvind Ltd, Ahmadabad

“A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF

THE REQUIREMENTS FOR MASTERS IN RURAL

MANAGEMENT”

Submitted by:

Anjaney Kumar

Sunil Kumar

KIIT SCHOOL OF RURAL MANAGEMENT BHUBNESWAR

Management Traineeship Segment (MTS) I

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Approval page

SCHOOL OF RURAL MANAGEMENT, KIIT UNIVERSITY

Bhubaneswar

The MTS Report of

Anjaney Kumar

Sunil Kumar

Candidates for the degree of MBA Rural Management

Are hereby APPROVED

Prof. H.S.GANESAHA

Faculty Guide

MBA-Coordinator

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Executive Summary

Project title:

Market research for organic staple business in Domestic and Global markets for Arvind Ltd

Host Organization: Arvind limited

Reporting officer: Mr. Pramod Awatade

Project location: Akola District, Maharashtra

Authors: Anjaney Kumar and Sunil Kumar

Project period: 4th July 2011 to 3

rd September, 2011

Objective of the project:

Estimation of production potential of organic staple food in Akola district of Maharashtra

under ARVIND Ltd.

Current scenario of organic staple business in domestic and global markets.

Strategy formulation for sustainable growth of the business

Methodology:

Primary data collection from field and management information system (MIS) office

Secondary data collection from internet

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Major findings:

Based on our research we found that 3538 farmers spread over 132 villages of Akola district are

registered under Arvind organic projects and growing organic staple food on 11387.50 acres of

land including pigeon pea, Sorghum, Sunflower, Safflower, Ajwain Etc. under strict internal and

external inspection agency. In year 2010-11, 80978 quintals of organic food were produced and

their major markets are metro cities like Mumbai, Delhi, Hyderabad, Pune, etc. At domestic

market, the major players are Namdhari fresh, Sumintar, Fab India etc. Farmers had formed

SHGs for better coordination among them. With course of globalization and health

consciousness among people there is huge demand of organic food both at domestic as well as

global level. Market research study shows that US AND EUs country are the major destination

for our export. In Indian context we can say that Organic farming is as an important livelihood

option for small, resource-poor farmers with low-input costs and quality food production. We

assumed 10% premium for the business at domestic as well as global markets.

Recommendation:

We find that organic staple business is in nascent stage in Indian market and consumers are

unaware about the organic food but it is increasing rapidly in domestic as well as global markets.

.it is a good opportunity for the ARVIND Ltd. to promote organic contract farming in terms of

market sustainability of the business as well as sustainability of the environment. Even though

ARVIND LTD involved in organic staple business but it is not registered under any companies

acts so registration is important for gaining brand image. ARVIND LTD has vast infrastructure

(warehouse, dal mill, and procurement center) as well as skilled human resources so in this point

of time it is very necessary to promote the organic business by different electronic as well as

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print media. Warehouse of ARVIND Ltd. is not registered by government so before full fledge

business of organic staple business it is necessary that it should get registration. During our visit

to warehouse we found that nearby area of warehouse is not clean sometime there might be

chance of insect may infect the stored food. So storing of commodities is pure hygiene condition

is very important. Farmers had formed the SHGs for better coordination among them so it is

necessary that it should be registered.

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ACKNOWLEDGEMENT

In preparing this report a considerable amount of thinking and informational inputs from various

Sources were involved. We express our sincere gratitude to everyone who contributed towards

Making this report possible.

First of all we would like to thank dignitaries of Arvind Limited, Ms. Mili Dash, Manager,

Human Resources Learning & Development, for giving us opportunity to work in this

prestigious organization. We would like to thank our reporting officer Mr. Pramod Awatade,

senior manager, project for valuable support and feed back for the successful completion of this

report.

We would also like to thank all our respondents for their response without which this study could

not have been possible.

We also take a special mention of faculty guide Prof. H.S.Ganesha and MTS coordinator of

KSRM, Prof. Prasun Kumar Das for his valuable inputs.

We extend my sincere gratitude to all other people, my friends and my family and to God, who

made all things possible.

Date: September 13th, 2011 Anjaney Kumar

KSRM, Bhubaneswar Sunil Kumar

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Table of contents

CHAPTER -01 .......................................................................................................................... 14

1. BACKGROUND OF STUDY: .............................................................................................. 14

1.1 Organization overview: ....................................................................................................... 15

1.2 ARVIND Ltd: Organgram ................................................................................................... 16

1.3 Project Overview: ................................................................................................................ 17

1.4 Objective: ............................................................................................................................ 17

1.5 Significance of the study: .................................................................................................... 17

1.6 Methodology: ...................................................................................................................... 18

2 OBJECTIVE: ......................................................................................................................... 19

2.1 District overview: AKOLA ................................................................................................. 19

2.1.1 Geographical location and boundaries of Akola district: ................................................ 19

2.1.2 Climatic condition of Akola District: ............................................................................ 19

2.1.3 Type of soil in Akola district (Area in 000 hectors) ....................................................... 20

2.1.4 Land holding pattern in Akola district: .......................................................................... 21

3 ORGANIC PROJECTS: ARVIND LTD ................................................................................ 22

3.1 Area under Arvind Ltd ........................................................................................................ 22

3.2 Distribution of land under different crops: ........................................................................... 23

3.3 Seasonality of agriculture: ................................................................................................... 23

3.4 Capacity building of farmers through SHG: ......................................................................... 24

3.5 Inspection and certification:................................................................................................. 25

CHAPTER: 2 ............................................................................................................................ 26

4 OBJECTIVES: 02 .................................................................................................................. 26

4.1 Domestic Scenario: India ..................................................................................................... 26

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4.2 Domestic market: ................................................................................................................ 27

4.3 States wise Demand of organic food in India ....................................................................... 29

4.4 Cities wise demand of organic food in India ........................................................................ 30

5 INDIA‟S MAJOR PLAYERS: ............................................................................................... 30

5.1 Namdhari fresh: ................................................................................................................... 30

5.2 Eco-farms: ........................................................................................................................... 32

5.3 Fab India: ............................................................................................................................ 34

5.4 Suminter India organics: ...................................................................................................... 35

5.5 Moraraka Organic Food Pvt. Ltd: ........................................................................................ 37

6 LIMITED PENETRATION OF ORGANIC FARMING IN INDIA: ...................................... 38

7 WORLD SCENARIO OF ORGANIC AGRICULTURE ........................................................ 40

7.1 Development of organic agriculture land worldwide: ........................................................... 41

7.2 Top ten countries have more organic certified land: ............................................................. 41

7.3 Country with highest no of organic producer: ...................................................................... 42

7.4 Global market trend of organic food: ................................................................................... 42

7.5 Market forecast: GLOBAL .................................................................................................. 43

8 EUROPEAN UNION: ............................................................................................................ 43

8.1 Segmentation....................................................................................................................... 44

8.2 Market value forecast: European Countries ......................................................................... 45

9 STATUS OF ORGANIC STAPLE BUSINESS IN USA: ....................................................... 45

9.1 Segmentation....................................................................................................................... 46

9.2 Market Forecasts: USA ....................................................................................................... 47

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CHAPTER: 03 .......................................................................................................................... 48

OBJECTIVE: 03 ....................................................................................................................... 48

10 VALUE CHAIN: FARMERS TO CONSUMER: ................................................................. 48

10.1 MAJOR STEPS ................................................................................................................. 49

10.2 Business at domestic level: ................................................................................................ 50

10.3 Business at Global level: ................................................................................................... 51

10.4 European Regulation for Import from India ....................................................................... 51

10.5 USA regulation for import from India................................................................................ 52

10.7 warehouse registration ....................................................................................................... 57

11 COST ANALYSES .............................................................................................................. 60

11.1 Cost Analysis for Domestic Market ................................................................................... 63

11.2 Cost Analysis for Global Business ..................................................................................... 65

ASSUMPTION FOR COST ANALYSIS: ................................................................................. 67

12 SWOT ANALYSIS OF ORGANIC BUSINESS .................................................................. 68

12.1 Situation Analysis ............................................................................................................. 69

12.2 Internal /within us.............................................................................................................. 69

13, 4PS MODEL FOR ORGANIC BUSINESS ......................................................................... 70

CONCLUSION ......................................................................................................................... 71

RECOMMENDATIONS .......................................................................................................... 72

14 ANNEXURE........................................................................................................................ 73

14.1 Certified organic land (Acre) ............................................................................................. 73

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14.2 Distributor of USA ............................................................................................................ 74

14.3 Distributor of European Countries ..................................................................................... 75

14.4 distributor of India ............................................................................................................. 76

BIBLIOGRAPHY ..................................................................................................................... 77

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List of Figures

Figure 1 Types of Soil (In %) .................................................................................................... 20

Figure 2 Cropwise land distribution........................................................................................... 23

Figure 3 % of organic Food Production Based on Value in year 2009-10 .................................. 28

Figure 4 Development of organic Agriculture Land (1999-2009) .............................................. 41

Figure 5 Top ten Countries with Highest certified organic Land ................................................ 41

Figure 6 Top countries with highest no of certified producers .................................................... 42

Figure 7 Global market trend (Year 2001-2011) ........................................................................ 42

Figure 8 EU market (2006-2009) ............................................................................................... 43

Figure 9 Market Segmentation EU Countries ........................................................................... 44

Figure 10 Market Segmentation of EU Countries ...................................................................... 44

Figure 11 Market Segmentation US........................................................................................... 46

Figure 12 Market Share Of EU And USA Of Organic Business................................................. 46

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List of Tables

Table 1 Land Use Pattern .......................................................................................................... 20

Table 2 Types of Soil in Akola District ..................................................................................... 20

Table 3 Land Holding Pattern.................................................................................................... 21

Table 4 Center Wise Organic Land............................................................................................ 22

Table 5 No of Farmers and SHGs Centerwise............................................................................ 24

Table 6 Indian organic Status .................................................................................................... 26

Table 7 Different types of organic Staple Produced in India ...................................................... 27

Table 8 Production of organic food (Year 2009-10)................................................................... 27

Table 9 Domestic Market, Present And Forecasted .................................................................... 28

Table 10 Stateswise Demand of Organic Present and Forecasted ............................................... 29

Table 11 Citywise Demand of Organic Food in India ................................................................ 30

Table 12 Overviews of organic status worldwide ...................................................................... 40

Table 13 Market Forecast For Global Business (2010-2015) ..................................................... 43

Table 14 Market Forecast of EU Countries (2010-2015) ........................................................... 45

Table 15 USA Organic Market Status (2006-2010) ................................................................... 45

Table 16 USA Organic Market Forecast (2010-2015) ................................................................ 47

Table 17production of Organic Staple Food Under Arvind Organic Project ............................... 62

Table 18 Cost Analysis for Domestic Market ............................................................................ 63

Table 19 Cost Analysis For Global Market ................................................................................ 65

Table 20 Annexure Organic Certified Land ............................................................................... 73

Table 21 Annexure List Of Distributor Of Usa .......................................................................... 74

Table 22 List of distributor of European Countries ................................................................... 75

Table 23 List of distributors Of India ........................................................................................ 76

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List of Abbreviations

APEDA Agricultural & Processed Export Development Authority

IFOAM International Federation Of Organic Agricutlture Movement

CUC Control Union Certification

USDA United States Departmwent Of Agriculture

MAPMC Maharastra Agriculture Produce Market Committee

NOP National Organic Program

WTO World Trade Organisation

FAO Food And Agricutlture Organisation

EU European Union

OTA Organic Trade Association

EIA Export Inspection Agency

ICS Internal Control System

MSP Minimum Support Price

NAFED National Agriculture Co Operative Marketing Federation Of India

NAP National Agriculture Policy

NPK Nitrogen Phosphate Potassium

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Chapter -01

1. Background of study: Organic foods are foods that are produced using methods that do not involve modern synthetic

inputs such as synthetic pesticides and chemical fertilizers, do not contain genetically modified

organisms, and are not processed using irradiation, industrial solvents, or chemical food

additives .Organic farming is being practiced in 100 countries of the world. The ill-effects' of

chemicals used in agriculture have changed the mindset of some consumers of different countries

who are now buying organic with high premium for health. Policy makers are also promoting

organic farming for restoration of soil health and generation of rural economy apart from making

efforts for creating better environment.

As demand for organic foods continued to increase, high volume sales through mass outlets such

as supermarkets rapidly replaced the direct farmer connection. Today there is no limit to organic

farm sizes and many large corporate farms currently have an organic division. While organic

food accounts for 1–2% of total food sales worldwide, the organic food market is growing

rapidly, far ahead of the rest of the food industry, in both developed and developing nations.

The world organic market has been growing by 20% a year since the early 1990s, with future

growth estimates ranging from 10%–50% annually depending on the country. The total organic

area in Asia is nearly 2.9 million hectares. This constitutes nine percent of the world‟s organic

agricultural land. 230‟000 producers were reported. The leading countries are China (1.6 million

hectares) and India (1 million hectares). According to the Indian Competence Centre for Organic

Agriculture, the global market for organically produced foods is $65billion and is estimated to

increase to $102 billion by 2020.

Basmati rice, pulse, tea, spices, soybean, toor dal, Green gram and their added products are

produced organically in India. Apart from the dibble sector, organic cotton fiber, garments,

cosmetics and functional food products are also produced.

Although organic farming is picking up pace in India, the sector has been jostling with lack of

awareness, knowledge and confidence. Besides, there is a limited expertise in marketing of

organic products and the government should engage NGOs to close linkage with farmers.

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1.1 Organization overview: Arvind Mills was established in 1931. It was founded by the three brothers Kasturbhai Lalbhai,

Narottambhai Lalbhai and Chimanbhai Lalbhai one of the leading families of Ahmadabad.

Arvind Mills, the flagship company of the Lalbhai Group, is one of India's leading composite

manufacturer of textiles. It manufactures a range of cotton shirting, denim, knits and bottom

weights (Khakis) fabrics. It is India's largest denim manufacturer apart from being world‟s

fourth-largest producer and exporter of denim. Today it not only retails its own brands like

Flying Machine, Newport and Excalibur but also licensed international brands like Arrow, Lee,

Wrangler and Tommy Hilfiger, through its nationwide retail network. Arvind also runs a value

retail chain, Mega mart, which stocks company brands.

The original budget for the company totaled $ 55 thousand, at present it is $ 500 million Arvind

feature is that its enterprises are equipped with highly advanced equipment of a full cycle – from

painting the fiber to the finished product.

Arvind is working closely with the farmers of the Vidarbha region in Akola to grow organic

cotton and staple food like green gram, Pigeon pea, black gram, soybean, sunflower, sorghum,

ajwain etc. This initiative has helped to improve the livelihood of the farmers by dramatically

increasing their per-acre income. A direct buying-at-doorstep policy and a seven day payment

cycle, along with an elimination of all forms of exploitation by middlemen, have further helped

improve the farmer‟s income levels. What started out as a small project now encompasses

26395.35 acres of farmland employing nearly 3538 farmers? All the organic cotton produced at

these organic farms is certified by the Control Union Certification, Netherlands.

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1.2 ARVIND Ltd: Organgram

Senior Project Manager

Core Team Office team

Social Development

Officer Production Manager

MIS Accounts

Pest and

Disease control

Manager

Assistant Assistant Assistant

Logistic

Assistant Assistant

Assistant

Driver

Office assistant

Extension team

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

Extension officer

Technical

Assistant

Technical officer

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

Technical

Assistant

Technical

Assistant

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

Extension officer

Technical

Assistant

Technical officer

Technical

Assistant

Technical

Assistant

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1.3 Project Overview: Pure farm is brought to this region by ARVIND Ltd. Pure farm works with the farmers to help

them adopt natural, organic method of cultivation. In the region where ARVIND work with the

farmer, these practices are ensuring that farmer gain progressively better crop yields. The land is

not depleted of rich soil, nor poisoned with dangerous pesticides and herbicides.

Pure farm then helps farmers reach market all over the country using its extensive marketing

network.

1.4 Objective: The study was focused to these assigned activities:

Estimation of production potential of organic staple food in Akola district of Maharashtra

under ARVIND Ltd.

Current scenario of organic staple business in domestic and global markets.

Strategy formulation for this sustainable growth the business

1.5 Significance of the study: The significance of the study is to find the suitable market for organic food and to make strategic

formulation for the business of organic food so that marketing of the organic food can run in a

sustainable manner and producer can get better return through the business.

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1.6 Methodology:

Our research work was divided in 3 phases. In every phase we worked on objectives assigned to

us. During last phase of study we completed our draft and report writing.

Methodology

Phases

Phase 1 Objective 1

Phase 2 Objective 2

Data interpretation

Strategy formulation

Phase 4 Phase 3 Objective 3

Draft writing

Report writing Literature review

Primary data collection from

MIS

Secondary Data

Internet

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2 Objective: 01: Estimation of production potential of organic staple food in Akola

district of Maharashtra under ARVIND Ltd.

2.1 District overview: AKOLA 1st July 1998 Akola district was divided into two separate districts as - Akola & Washim in new

Akola district there are 7 blocks that are divided into two sub divisions for agriculture

department as Sub Division Akola includes 3 blocks as Akola, Barshitakli & Murtizapur & Sub

Division Akot includes 4 blocks as Akot, Telhara, Balapur, and Patur.

Akola District is a one of the major cotton producer district of Maharashtra. Nearly 69%

population of the district is depends on agriculture. Geographical area of the Akola district is

5417 sq. Km. and the density of population is 300. The district consists of seven talukas. As per

2011 census the total population of Akola district is 1818617 l. The male population is 51.40%

and female population is 48.60 %, there was change of 11.60% in the population as per census

2001. The average literacy rate of the district is 87.55 % compare to 81.42% of 2001 and the

rural literacy rate is 78.80%. The working population of the district in the age group of 15 to 59

is 43.27 %. And the child population of the district in the age group of 8 to 14 is 33.26%. There

were 3,413 out of school children in 2007-08 according to Sarva Shiksha Abhiyan.

2.1.1 Geographical location and boundaries of Akola district:

Akola district is situated at latitude 20.7° north and longitude 77.07° east. Melghat Hills and

forest region surround the Akola district. Akola is blessed by numerous water bodies like Morna

River, Purna River, Vaan River, Aas River, and Shahnur River etc. There are several dams in the

district. Akola has encountered three floods since 1978. The portion covered by forests in Akola

stretches to an area of 467 square kilometers. Akola is surrounded by Amravati district in the

north, Washim district in the south, Amravati and Washim districts in the east and Buldhana

district in the west

2.1.2 Climatic condition of Akola District:

District falls in assured rain fall zone hence receives monsoon rains during June to October. The

Avrage annual rain fall of the district is 714.1m.m.spread over 47 rainy days in normal condition.

The district characterized by warm & humid climate in June to October and later on there is

gradual decline in temperature from November onwards. Cool & dry climate is observed during

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Nov to Jan. March, April, May is the hottest months The Average- Max & Min Temp of the

District is 47.9 & 12 degree Celsius.

Table: 1, land use pattern

Geographical Area 5.42 lakh hact.

Total area under cultivation 4.96 lakh hact.

Average area under fallow land 0.18 lakh hact.

Number of total cultivator 290165

Average Area under Rabi crops 0.46 lakh hact.

Average area under kharip crops 4.82 lakh hact.

Average area under summer crops 0.02 lakh hact.

Source: District Superintendent of Agricultural Office, AKOLA

2.1.3 Type of soil in Akola district (Area in 000 hectors)

Table: 2 types of soil in Akola district

Figure 1 types of soil (in %)

Source: District Superintendent of Agricultural Office, AKOLA

Light soil18%

Medium soil30%

Heavy soil52%

Types of soil In Ha(000)

Light soil 87

Medium soil 149

Heavy soil 255

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2.1.4 Land holding pattern in Akola district:

Table: 3, Land holding pattern

Sr. No Description Size of holding

hectors

No. of

Holders

Area In ha. Remarks

1 Marginal < 1. 00 55979 38944

Ava. Size of

holdings is 2.83

ha.

2 Small 1.00 --1.99 97618 142925

3 Semi

medium

2.00 -- 3.99 76775 212486

4 Medium 4.00 -- 9.99 50802 304353

5 Large > 10.00 8991 123711

Source: District Superintendent of Agricultural Office, AKOLA

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3 Organic projects: ARVIND Ltd Modern organic farming has made up only a fraction of total agricultural output from its

beginning until today. Increasing environmental awareness in the general population has

transformed the originally supply-driven movement to a demand-driven one. Premium prices and

some government subsidies attracted farmers .There are different factor motivating the farmers

for the production of organic staple food in the Akola district, Discussed in following category:

3.1 Area under Arvind Ltd For the cordination and promotion of organic farming there are six center working across the

district.136 village comes under these center.this helps the bidirection flow of information from

ARVIND LTD to the each and evry farmer registred under this project.

Table 4 center wise organic land

Sr.No Name of the

center

No of village No of

farmer

Area under organic

farming[Acre ]

1 akharwada 28 591 4134.75

2 Chohotta 39 623 5022.9

3 Nimba 20 470 3314.50

4 Mazod 33 619 4697.9

5 Paras 30 610 4490.8

6 Ramgon 22 625 4734.5

Source: MIS, Arvind Ltd

Above table show that there are 3538 farmer reistered under ARVIND for oranic farming in six

different center across the district of akola covering 26395.35 Acre of land.out of all organic land

11387.5 Acre of land used by cultivation of staple food other than Cotton cultivation.

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3.2 Distribution of land under different crops: Following figure explain the distribution of land under different organic production

Figure: 2. Crop Wise land Distribution

Moong is cultivated in 7730.06 Acre of the land followed by pigeon pea in 2867.9 Acre of the

land.safflower is cultivated in only 11 Acre of land

3.3 Seasonality of agriculture: There are 3538 farmer registered under the ARVIND LTD COMPANY for the organic staple

production in the district covering 11388 acre of land

Sr.No Name of the

crop

Scientific name Sowing

period

Harvesting

period

Production[qt] Average

yield/Acre.

1 Green gram Vinga Radiata

July August – Sept 36201.39 4.6832

2 Pigeon pea Cajanus Cajan June -july Dec - Jan 11593.4 4.0425

3 Black gram Vigna Mungo July –Aug October 5417.85 2.8238

4 Soyabean Glycine max June -July Sept – Oct 14951.03 6.1537

5 Sunflower Helianthus annuus May -June Sept –Oct 962.05 4.6815

6 Sesame Sesamum indicum July October 333.8 4.8167

7 Safflower Carthamus

tinctorius

June – july Sept -Oct 47.64 4.3307

8 Sorghum Sorghum bicolor Feb- march April -may 11309.22 5.7626

9 Ajwain Trachyspermum

Copticum

June -july Sept - Oct 162.02 4.7031

Source: MIS, Arvind Ltd

7730.06

2867.91123.15

2429.6

205.5

69.311 1962.52 34.45

Moong

Pigeon pea

BlackGram

Soyabean

Sunflower

Seasame

Safflower

Sorghum

Ajwain

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Source: MIS, Arvind Ltd

3.4 Capacity building of farmers through SHG:

Organic farming production is based on contract farming model where there is agreement

between ARVIND LTD COMPANY and producer.in turns ARVIND committed to provide

support through supplying farm inputs, land preparation, providing technical advice and

arranging transport of produce to the ginning mills.

All this activities are carried out by the SHG [self help group] formation.SHG activities not only

support in agriculture activities but also promote saving habit among group member, sanitation

in the communities‟ .Each SHG member select their president, secretary for smooth running of

activities

Following table explain the no of SHG formed under different extension center.

Table: 5. No of farmers and SHGs center wise

Sr.No Name of extension center No of SHG No of farmers

1 Akhatwada 36 591

2 Mazod 36 619

3 Nimba 30 470

4 Chohotta 45 623

5 Paras 37 610

6 Ramgon 32 625

Source: MIS, Arvind Ltd

4.684.04

4.83

6.16

4.7 4.824.33

5.77

4.7

0

1

2

3

4

5

6

7

Moong Pigeon peaBlackGram Soyabean Sunflower Seasame Safflower Sorghum Ajwain

q

u

i

n

t

a

l

staple food

production /Acre

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3.5 Inspection and certification: In order to faciliatate the farmers in the certification process and to reduce the costs, farmers

group had been organised by ARVIND within internal control system.for this each farmer had

signed a contract with the ARVIND in which they had declare their rediness to follow the

organic staanderds.the organic ectension worker of the project advice the farmer in organic crop

production technique and support them in necessory record keeping.Internal inspector inspect the

farmer at least once a year and an internal certification committee decide about the sanction

against defaulting farmers.

In year 2009-10, Out of 3538 organic staple producing farmer 2156 farmers were in second

phase of certification are under in conversion year 2 and rest 1362 farmer are organic

certified.But in year 2010-11 all farmers are completelty certified by “control union

certification.’’through Agricultural and Processed Food Products Export Development

Authority [APEDA]

Organic internal control system structure

FARMERS FARMERS FARMERS

PROMOTERS

EXTENSION SERVICE

INTERNAL

CONTROL SYSTEM

CONTROL UNION

CERTIFICATION

(CUC)

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Chapter: 2

4 Objectives: 02

Current scenario of organic staple business in domestic and global markets

Overview of domestic market and Global market

The demand for organic foods in India is estimated to be $8,423.8 million in 2010. The

distribution of the latent demand (or potential industry earnings) in India, however, is not evenly

distributed across regions. Maharashtra is the largest market with $1,145.3 million or 13.60

percent, followed by Uttar Pradesh with $976.9 million or 11.60 percent, and then Gujarat with

$693.0 million or 8.23 percent of the latent demand in India. In essence, if firms target these top

3 regions, they cover some 33.43 percent of the latent demand for organic foods in India.

The demand for organic foods is estimated to be $113.0 billion in 2006. The distribution of the

world latent demand (or potential industry earnings), however, is not evenly distributed across

regions. Asia is the largest market with $35.8 billion or 31.68 percent, followed by Africa,

Europe & the Middle East with $37.2 billion or 32.92 percent, and then North America & the

4.1 Domestic Scenario: India

According to organic trade association in year 2009 there are 2.5 million Ha of land was organically

certified. 115238 tons organic products as certified. There was 158 processing unit was in India. 35

products exported to the foreign countries.

Table: 6, Indian Organic Status

Sr. No Particulars

1 Area under certified 2.5 million Ha

2 Total certified products 115238 ton

3 Total project certified 332

4 No of processing unit 158

5 Accredited and certifying agencies 11

6 No of product exported 35

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Source: organic trade association

Following table shows the organic staple food produced in the country .it is categorized in spices,

pulses, fruits, vegetable, and oil seeds.

Table 7, different types of organic staple produced in India

Sr.No. Types of staple Name of the staple

1 Commodity Tea, Coffee, Rice, Wheat ,sorghum , ajwain

2 spices Cardamom, Black pepper, White pepper, Ginger, Turmeric, Vanilla, Tamarind, Clove, Cinnamon, Nutmeg, Mace, Chili

3 pulse Red gram, Black gram, pigeon pea

4 fruits Mango, Banana, Pineapple, Passion fruit, Sugarcane, Orange, Cashew nut, Walnut

5 Vegetable Okra, Urinal, Garlic, Onion, Tomato, Potato

6 Oilseeds Mustard,Sesame,Castor, Sunflower ,safflower

7 Others cotton, Herbal extracts, soybean

Source: APEDA

Production of organic food in India in year 2009-10 Table 8 production of organic food (year 2009-10)

Sr.No. crop Quantity produced in MT(2009-10)

1 Cotton 837293

2 Rice 17762

3 Wheat 113570

4 Other cereals and millets 271042

5 Pulses 53227

6 Oil seeds and soybean 315067

7 Tea /coffee 40614

8 Spices 168507

9 Fruits and vegetable 889844

10 Herbal and medicine 189193

11 other 24661

Source: APEDA

4.2 Domestic market: Consumption of organic food in India is not very much comparing to other EUs countries and USA.

Following table show the market of organic food in India from year 2004 to 2011.forcasted

market size of organic food in India in year 2012 to 2014 is 10,129.539 , 11,111.761 ,

12,192.130 US $ million. The organic products available in the Indian domestic market are rice,

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tea, coffee, pulse and vegetable .these products also exported as organic cashew nuts, cotton,

oilseeds, various fruit ,medicinal herbs but the majority of total organic production in India is

exported (75%-80%) with the balance consume or sold locally. Below pie chart shows the % of

organic agriculture production in India which is based on total production value.

Figure: 3, % of organic food production based on value in year 2009-10

Present and forecasted domestic market:

Present market size of Indian organic staple is 9236.32US $ million and forecasted to reach

12192.123in year 2014.

Table 9 Domestic Market, Present and Forecasted

Year India Market US $ mln

2004 4,768.592

2005 5,242.764

2006 5,765.965

2007 6,343.475

2008 6,981.161

2009 7,680.681

2010 8,423.843

2011 9,236.322

2012 10,129.539 Forecasted 2013 11,111.761

2014 12,192.130 Source: www.icongrouponline.com

rice24%

fruit & vegetable17%

nuts,oilseeds,pulses& herbs

9%spices

5%cotton

8%

wheat10%

coffee4%

tea23%

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4.3 States wise Demand of organic food in India

State wise demand of organic food in India in year 2009 and 2010 and forecasted demand in year

2014

Maharashtra had highest demand of organic food in India in year 2010

Table 10 states wise demand of organic present and forecasted

States Demand 2010 9US $

Mln

Demand 2011 US $

Mln

Demand

2014(forecasted)

Andaman & Nicobar Islands 4.315 4.701 6.077

Andhra Pradesh 612.199 666.899 862.110

Arunachal Pradesh 7.764 8.513 11.223

Assam 130.344 141.521 181.138

Bihar 147.770 156.747 187.084

Chandigarh 25.427 28.152 38.211

Chhattisgarh 171.610 193.061 274.886

Dadra & Nagar Haveli 1.096 1.186 1.503

Daman & Diu 1.276 1.380 1.750

Delhi 296.925 324.509 423.612

Goa 29.355 31.872 40.794

Gujarat 692.952 777.146 1,096.227

Haryana 261.681 286.934 378.275

Himachal Pradesh 60.218

65.598 84.800

Jammu & Kashmir 51.120 54.773 67.372

Jharkhand 137.826 176.409

Karnataka 432.577 469.671 601.151

Kerala 276.190 297.899 373.809

Lakshadweep 0.783 0.848 1.074

Madhya Pradesh 483.059 543.441 773.767

Maharashtra 1,145.331 1,251.732 1,634.003

Manipur 12.940 14.050 17.983

Meghalaya 15.324 16.584 21.019

Mizoram 9.396 10.336 13.759

Nagaland 19.150 20.929 27.321

Orissa 244.508 275.071 391.655

Pondicherry 22.259 24.486 32.595

Punjab 242.477 261.536 328.180

Rajasthan 390.890 439.752 626.131

Sikkim 1.683 1.816 2.279

Tamil Nadu 788.881 850.887 1,067.710

Tripura 15.422 16.579 20.599

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Uttar Pradesh 976.935 1,064.224 1,375.736

Uttaranchal 67.195 71.997 88.558

West Bengal 657.850 723.668 963.333

Source: www.icongrouponline.com

4.4 Cities wise demand of organic food in India

Following table shows that demand of organic food in metro cities in year 2010 .greater Mumbai

had highest demand of organic food followed by Delhi Municipal Corporation, Ahmadabad,

Kolkata, and Chennai.

Table 11 city wise demand of organic food in India

City States Rank US $ mln % of India

Greater Mumbai Maharashtra 1 335.318 3.98

Delhi Municipal Corporation

Delhi 2 227.386 2.70

Ahmadabad Gujarat 3 142.283 1.69

Kolkata W B 4 135.642 1.61

Chennai Tamilnadu 5 123.637 1.47

Hyderabad M. Corp Andhra Pradesh 6 106.921 1.27

Bangalore Karnataka 7 105.733 1.26

Surat Gujarat 8 98.506 1.17

Kanpur U P 9 74.165 .88

Pune Maharashtra 10 71.487 0.85 Source: www.icongrouponline.com

5 India’s Major players:

5.1 Namdhari fresh:

Namdhari's Fresh handles more than thousand tons of fresh vegetables and fruits at domestic and

International market. it produces are mainly destined to Europe, Australia and the Middle East.

Namdhari's Fresh is India's first company to receive the GLOBAL-GAP (European Retailers

Certified Vegetable Growing and Exporting Firm) certificate, which is an assurance for our high

quality standards. Namdhari Seeds has made a mark with itself in the Seed Industry widely as

one of the largest distributors of vegetable seeds in India. Namdhari Seeds is also a leading

Exporter of Vegetable and Flower seeds to Europe, Japan, U.S.A, Western Asia and South East

Asia. Companies are also a proud recipient of Best Exporter Award from Govt. of Karnataka &

Govt. of India and are designated as an "Export House".

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After the success in seed world, Namdhari have diversified into the production, distribution and

export of fresh vegetables & fruits under the name "Namdhari's fresh".Namdhari's Fresh is also

involved in natural farming to produce and supply Organic Vegetables and Fruits in the

International market. At present the EC directive is being followed and the produce is grown in

an Environmentally Friendly way. The natural gift of suitable climate, availability of sufficient

infrastructure, technical manpower and the applications of advanced technology in Production,

Processing, Grading, Packing, storage, Transportation, Communication and with dedicated

skilled laborers enables this company to produce and sell one of the best quality vegetables and

fruits for Fresh Market to meet the International Standards.

Uninterrupted Cold Chain:

To ensure the freshness of the vegetables till it reaches the consumer, the company is having a

continuous cold chain network right from the produce is harvested. The harvested vegetables are

transported in refrigerated trucks, which also help in the removal of field heat. From the

refrigerated trucks, the vegetables are transferred to the pre-cooling room.

Then the vegetables are transferred to the grading hall, which is also air conditioned and packed

under cool climate. The packed vegetables are stored in the cold rooms before being air lifted to

the destinations and during the transit in the air also, the product is stored in reduced

temperature. Thus the uninterrupted cold chain network makes Namdhari's Fresh to deliver the

quality vegetables with optimum freshness.

Quality Assurance:

The quality control systems are such that the products are checked and rechecked right from the

field, grading and packing and during shipment, which makes it possible to meet the high quality

standards of Europe and other developed nations. If required, Dutch KCB quality standard will

be applied and will be possible for us to deliver the quality produce on a daily basis. Namdhari

also performs shelf life test of the produce under different temperature conditions, whose results

will be used to improve the shelf life of the produce. The packing section is being geared up to a

hygienic handling so that the consumers receive a clean, hygienic product.

Certifications:

it is also working on a certification from Dutch accredited certifying agency SKAL, which

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certifies the quality of organic vegetables, with a symbol EKO which is recognized in most of

EEC and North America.

Namdhari's Fresh is a certified ORGANIC PRODUCER. It has become India's first vegetables

growing and exporting firm, which has received EUREP-GAP Certificate. The pack house is

under implementation of BRC and HACCP, however all the norms, essential for the same are

practiced. Ethical trading is its corporate philosophy and implementation of SA 8000 is part of its

commitment.

Retailing: Our backward integration has enabled us to produce and supply quality produce to our

end customers. We are pioneers in providing international ambience and quality in fresh

vegetables and fruits retailing. Majority of the vegetables and fruits are grown by us, ensuring

optimum freshness and quality of the produce. Presently we are operating in Bangalore and we

are planning to open our outlets in other metros very shortly.

Wholesale:

Apart from the export and retailing, we are also supplying fresh vegetables and fruits to

Institutional customers like star Hotels and retail chains. Presently we are catering to India's

oldest and largest five star Hotel group across the country. Our produce is also sending to other

retailers through our channel partners. We have also started channel development across the

country.

Export:

Namdhari Fresh takes pride to be India's first EUREP-GAP compliant company. It is one among

few who are in the business of fresh vegetables from India to Europe. Produces are destinated to

different countries across the globe. This has been possible by using efficient Cold Chain

Management. It also export different kind of fruits among them few is organic.

5.2 Eco-farms: EcoFarms (India)ltd was the founded in 1995 with a goal to develop and promote organic

methods of sustainable farming. The project over the year spread to the neighboring district of

Amravati ,jalgaon,and wardha.

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Looking at the dedication and commitment towards the promotion of organic farming, in 2004

the government of Orissa invited the company the company to start a similar project in Orissa.

Today the project has spread across the district of Kalahandi, Bolangir,and Ganjam.

Today 20000 growers ,who in addition to cotton, raise 40 different crops in 60000 Ha ,are part of

our ever –growing family. Apart from the common cash and food crops, today It market healthy,

ready to eat snacks.

Not only that ,guided solely, by customers, company have launched Earth conscious „a brand of

organic clothing that includes shirt, undergarments, baby cloths ,bed linen and the like in its

product fold.

Ecofarm initiative:

1.Mainstreaming of organic consumption by sustaining the supply of a very large number of

provisions in a vast network of retail outlets that cater to diverse consumer segments

2. Designing farming production to meet consumption needs.

3. Reaching out to the common man

4. Growers are business partners earning bonus as per company performance.

Certification:

Farm certification:

Fair Trade Certification - by FLO-Cert.

NPOP (National Programe for Organic Production) - by Ecocert and MO Control.

NOP (National Organic Program) - by Ecocert and IMO Control

Regulation (EEC) No. 2092/91 - by Ecocert and IMO Control.

Product certification:

Textiles - GOTS (Global Organic Textile Standards) - by Control Union Certifications

Food Products - ISO 22000 - under process.

Product and service:

Fair trade ,organic &biodynamic spices (black pepper ,white pepper,

Nutmeg,Turmeric,Chilly,Ginger,Clove) grains(cereals, pulse)edible oils, cashenuts..

Distribution setup:

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EcoFarms sustains a supply chain that carries a very large number of provisions to a vast

network of retail outlets that cater to diverse segments of organic consumers. The food products

are sold by the company under its brand name 'Reconfirms' in the domestic retail market. At

present it is supplying to around 300 stores all over India. It has tied up with all the major

retailers such as Big Bazaar, Reliance, Aditya Birla (More), Shoprite, Le Marche, Piramyds (Tru

Mart), Apna Bazaar, Metro Cash and Carry etc. to market the products under its own brand

name.

5.3 Fab India:

Fabindia is India's largest private platform for products that are made from traditional

techniques, skills and hand-based processes. Fabindia links over 40,000 craft based rural

producers to modern urban markets, thereby creating a base for skilled, sustainable rural

employment, and preserving India's traditional handicrafts in the process .Fabindia promotes

inclusive capitalism, through its unique COC (community owned companies) model. The COC

model consists of companies, which act as value adding intermediaries, between rural producers

and Fabindia. These are owned, as the name suggests, by the communities they operate from; a

minimum 26% shareholding of these companies is that of craft persons. Fab india's products are

natural, craft based, contemporary, and affordable

Products:

Organic Food Products (introduced in July 2004). Fabindia is Retail Company having a pan –

India presence with 128 stores across the country. the range includes certified organic food

products like tea, coffee, flours, grains, rice, pulse, sweeteners like honey, jiggery, spices, oil,

pickles, concentrates, pastas, seeds, herbs etc.

Organic Certification:

Products displaying Green logo are 'Fully Certified' Organic. All processes, from growing to

preparing to packing have been done according to National and International standards, verified

by accredited agencies.

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Products displaying our Blue logo are 'In Conversion'. This means that the farmer is using purely

organic techniques, and has registered and is complying with set standards. Farmland must be

managed organically for about 3 years before it can be fully certified.

Products displaying our Yellow logo are 'Natural'. This category contains products produced by

small farmers who use purely organic techniques, but who have decided to not yet register for

certification. It also includes some processed foods, which do not contain any synthetic

preservatives, colours, flavours or additives.

5.4 Suminter India organics:

Suminter India Organics, a Mumbai-based company, was founded in 2003 on the notion that

organic farming contracted out to small farmers in India would not only help to fulfil the

worldwide growing demand for organic produce but also lead the participating farmers to greater

economic stability.

Although it started out as a small trading company with the aim of helping local farmers, the

rapid growth and technological advances. Suminter has experienced in such a short time span is

truly impressive. Suminter opened a base in the Netherlands in a bid to supply the entire

European market with greater efficiency and we can now supply products to our European

customers almost immediately. Now a leading exporter of organic produce from India with a

unique organizational structure, Suminter aims to stay at the cutting edge of technological

advances in food safety, processing and preservation and has recently installed an organic

fumigation system (Eco2) and a dry steam sterilization facility (SteamLab) in Central India

(Indore). It is the first certified organic food processors in India to provide dry steam sterilized

products.

All of the farms where it work are certified to international standards, ensuring not only quality

produce but also fair labour and distribution practices. In fact, Suminter is only the third

company in India to be Fair Trade certified for cotton and is one of the only companies in India

to be exporting Fair Trade goods to the international market.

Despite its rapid development, whereby Suminter now works with over 7,500 farmers and

represents over 38,900 acres of farmland that has been or is in the process of being converted to

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organic, the company has continued to bring about social, economic and environmental benefits

for its workers and consumers. Integrating certification, training, farming, monitoring,

processing and distribution as Suminter has, assures of a high-quality organic supply chain and

guarantees the farmers a market for their crops.

Suminter firmly believes that organic farming is a strong alternative for small and marginal

farmers in India and aims to expand its farmland to 100,000 acres within two years as well as

further develop its product range. With a business model that emphasizes the well-being of

farmers, high quality products and the environmental benefits of organic farming practices,

Suminter will play a more and more prominent role in the organic food and textile industry, both

in India and abroad.

Products:

Grower and processor of certified organic food ingredients and fiber from india .working with

approximately 13000farmers across india for organic farming which further gets processed in

house with state of art technology in central India.

Oilseeds CerealsFiber (organic cotton) ,Spices(Ajwain) ,Ready to eat products(rajma

masala,palak ,veg pulav ,Paneer butter masala)

Certification:

All products are certified through control union cerfification, Neatherland.

Operation:

Suminter is an integrated company that aims to involve itself in each step from training farmers,

growing the produce and then processing and packaging these goods.

One of Suminter's greatest advantages is the extensive network of over 13,000 organic farmers

with whom we currently work. Suminter's primary supply of organic products comes directly

from its farm projects in 6 states in India: Gujarat, Maharashtra, Uttaranchal, Orissa, Kerala and

Rajasthan. Having such a broad and diverse supply chain ensures that Suminter always provides

its customers with the best quality products.

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In all of its projects, Suminter promotes organic agriculture through training and certification. It

encourage the concept of 'zero-cost' farming by providing seeds to farmers and training them to

use various bio-manures, bio-pesticides, and composting methods. This platform relieves the

farmers of the upfront cost of seeds and other inputs, and also ensures a high-quality, certified

organic product.

Impact: To the farmers with whom it work, Suminter pays a premium for the farmers' organic

crops, the quality and consistency of which Suminter monitors throughout the growing period.

Prices for organic goods average 10-15% higher than those for conventional goods and so

Suminter guarantees to its farmers purchase of each crop at the organic market price, allowing

them to earn a profit on their production. By guaranteeing a premium price to the farmers,

Suminter is helping these farmers to gain economic stability.

5.5 Moraraka Organic Food Pvt. Ltd: A non- profit voluntary organization, The Morarka Foundation was set up by Mr. Kamal

Morarka in 1993.the Morarka Foundation promoted small entrepreneurial initiatives in organic

agri-businesses, it also facilitated linkages between organic producers and traders. In the year

2006-07 it set up its marketing arm, Morarka Organic Foods Pvt. Ltd., to facilitate direct linkage

between the consumer and producers. Beginning with just about 500 farmers about 10 years ago,

today there are now over 1,00,000 farmers spread all over India cultivating over 2,50,000 acres

land under organic management. These farmers are producing over 300 different crops, out of

which over 100 crops have already been brought under the organic value chain management.

Retail brand:

From being in the back end of the value chain for over 10 years, Morarka Organic has now got

into the front end, i.e., retailing of certified organic products under its own brand name ?Down to

Earth?. While this initiative is expected to provide direct linkages to the thousands of certified

organic producers, it will also enable quality conscious consumers to access the very best quality

of food deserved by them at reasonable prices

Certification:

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All Down to Earth products undergo the strictest quality standard checks and are certified by the

most stringent certification agencies in the world. Down To Earth is certified by OneCert Asia

Agri. Certification Pvt. Ltd. (a subsidiary of One Cert Inc. USA) as per NOP (USDA), NPOP

(Government of India) and EU Standards for Organic Certification.

Products: Cereals, Pulse& beans, Spices, Fruits, Nuts, Oil seed

6 Limited penetration of organic farming in India: There are different problem associated with the penetration of organic farming and business in

India. Low level of market information, time lag from conversion from conventional to organic

status, limited positive government interventions, underdeveloped infrastructure and lack of

proper marketing channel are the main problems associated with the organic farming in India.

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Limited penetration of organic farming in India

Low levels of Market

information

Conventional Agri-Inputs

considered more effective

than Bio-inputs

Time lag & high costs of Conversion of Conventional

to organic farming

Limited positive government

interventions & high negative

subsidies

Under developed

infrastructure &

marketing

channels for green

outputs

No designated agency at Central State &

local levels which reaches farmers with

information

Low Quality of

bio-inputs

Non-availability

of bio-inputs

High Costs involved certification & Limited no. of certifying agencies

Relatively longtime period needed

For bio inputs to be effective

Subsistence

farming by large

number farmers

Price premiums reach more for Intermediaries than producers

No strategic attention

for greening agriculture & No coordinated effort at Centre & State Level

Limited financial

outlays for Bio-inputs by

government

No & limited Storage facilities

Subsidies to commercial inputs

No easy quality assurance

mechanisms

Small farm holdings

Formal associations of

traders, farmers & others

are

Not paying adequate

attention

Mostly geographically

dispersed organic farmers;

Small numbers with

organic produces

No Quality Monitoring Control Systems in place

Existence of spurious & low quality brands in market

Limited Shelf life of

bio-inputs

Limited R & D efforts & Investments on Bio inputs

Low levels of networking among

Farmers and other stakeholders

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7 World Scenario of Organic Agriculture According to the latest survey on organic agriculture (published in The World of Organic

Agriculture), carried out by the Research Institute of Organic Agriculture FiBL and the

International Federation of Organic Agriculture Movements IFOAM, organic agriculture is

developing rapidly.

The main results of the most recent global survey on certified organic farming (data end 2007)

show that 32.2 million hectares of agricultural land are managed organically by more than 1.2

million producers, including smallholders (2007).

In addition to the agricultural land, there are 0.4 million hectares of certified organic aquaculture.

The area for wild harvested products accounts for 30.7 million hectares.

Table: 12 Overviews of organic status world wide

Indicator Global total Leading country

Country with certified

organic agriculture

160[2008,154;2000:86

Organic agriculture land 37.2 million .ha Australia(12 million .ha)

Argentina (4.4),US(1.9)

Country with

>5%organic agri land

24

(2008:22)

Falkland35.7%, Liechtenstein (26.9), Australia (18.5%)

Producer 2009 1.8 million

2008:31 million

India(677257)Uganda(187893)Mexico(128826)

Organic market size 54.9bn USD

(2008:50.9),(1999:15.2)

US(25.5USD),Germany(8.3 USD),France(4.3 USD)

Organic per capita

consumption per year

8 Bn. USD Denmark(190 mil USD),Switzerland(180),Australia(76)

Country with organic

regulations

74

2008:73

Organic certifier 523

(2008:489)

Japan(59),US(57),South Korea(33)

No of IFOAM affiliates 2010:757

(2008:734)

Germany (98),US(45),India(44)

Source: FiBL

The regions with the largest areas of organically managed agricultural land are Oceania, Europe

and Latin America as well as North America. Australia, Argentina and Brazil are the countries

with the largest organically managed land areas

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7.1 Development of organic agriculture land worldwide: Survey of FiBL reveals that from last 10 year land under organic farming has increased from11

M.Ha. In 1999 to the 37.2 M.Ha. In 2009.during2004-05 land under organic cultivation has

decreased.

Figure: 4.Development of organic agriculture land (1999-2009)

Source: IFOAM

7.2 Top ten countries have more organic certified land: Australia has 12.04 M Ha of organic land; India has 1.02 M ha of organic land

Figure 5 Top ten countries with highest certified organic land

Source: IFOAM

1114.8

17.319.7

25.529.7 28.9 30.5 32.1

35.237.2

0

5

10

15

20

25

30

35

40

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

L

a

n

d

M

.

H

a

Year

12.02

4.01

1.85

1.82

1.77

1.13

1.02

0.99

0.93

0.91

0 2 4 6 8 10 12 14

Australia

argentina

china

USA

Brazil

spain

india

Italy

uruguay

germany

M.Ha

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7.3 Country with highest no of organic producer: India has highest no of organic certified producer 677257 worldwide, followed by Uganda,

Mexico Ethiopia Tanzania.

Figure 6 Top countries with highest No of certified producers

Source: FiBL

7.4 Global market trend of organic food: Global trend of organic food is increasing continuously. In year 2001 market size was 80660.25

US $ million .in year 2006 it increased to 113026.80 US $ million and in year 2011 forecasted

market size is 166172.22US $ million.

Figure 7 Global Market trend (year 2001-2011)

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

677257

187893

128862

101578

85366

54904

43029

35565

27748

25291

India

Uganda

Mexico

Ethiopia

Tanzania

Peru

Italy

Turky

burkina F.

Spain

No of producer

c

o

u

n

t

r

y

80,660.25

113,026.80

166,172.22

0.00

50,000.00

100,000.00

150,000.00

200,000.00

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

US $ mln

US $ mln

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7.5 Market forecast: GLOBAL

In 2015, the global organic food market is forecast to have a value of $88,069.3 million, an

increase of 48.4% since 2010. The compound annual growth rate of the market in the period

2010–15 is predicted to be 8.2%.

Table 13 Market forecast for Global Business (2010-2015)

Year $ million % Growth 2010 59,341.2 12.4%

2011 64,959.5 9.5%

2012 70,641.3 8.7%

2013 76,416.4 8.2%

2014 82,197.6 7.6%

2015 88,069.3 7.1%

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

8 European Union: The European organic food market grew by 9.9% in 2010 to reach a value of $25,040.3 million.

In 2015, the European organic food market is forecast to have a value of $36,382 million, an

increase of 45.3% since 2010.CAGR 2006-10 is 9.9%.

Figure 8 EU Market (2006-2009)

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

.

17,141.10

25,040.30

0.00

5,000.00

10,000.00

15,000.00

20,000.00

25,000.00

30,000.00

2006 2007 2008 2009 2009

U S $ mln

U S $ mln

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8.1 Segmentation Market Segmentation I: % share, by value,2010

Dairy covers 22% of the European market followed by Fruits and vegetable 21% markets

Figure: 9 Market Segmentation EU countries

Source: Philip M. Parker, INSEAD, www.icongrouponline.com Market Segmentation II: % Share, by value,2010

Germany accounts for 36.6% of the European organic food market value.

France accounts for a further 18.3% of the European market followed by Italy 18.30%.

Figure: 10 market segmentation of EU countries

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

22.10%

21.60%

19.20%

13.90%

9.90%

13.30%Dairy

Fruit & Vegetable

Prepared food and others

Grains & Bread

Beverage

meet fish and poultry

36.60%

18.30%12.60%

11.90%

2.50%18.20%

Germany

France

Italy

United kingdom

Spain

Rest of Europe

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8.2 Market value forecast: European Countries In 2015, the European organic food market is forecast to have a value of $36,382 million, an

increase of 45.3% since 2010. The compound annual growth rate of the market in the period

2010–15 is predicted to be 7.8%.

Table 14 Market forecast of EU countries (2010-2015)

Year $ million % growth

2010 25,040.3 9.9%

2011 27,207.4 8.7%

2012 29,416.1 8.1%

2013 31,679.6 7.7%

2014 33,988.7 7.3%

2015 36,382.0 7.0% Source: Philip M. Parker, INSEAD, www.icongrouponline.com

9 Status of organic staple business in USA: The United States organic food market grew by 15% in 2010 to reach a value of $28,513.1

million. The compound annual growth rate of the market in the period 2006–10 was 13.4%.

Table 15 US Organic Market Status (2006-2010)

Year $ mln % growth

2006 17,221.0

2007 20,410.0 18.5

2008 23,607.0 15.7

2009 24,803.0 15.1

2010 28,513.1 15

CAGR 2006-10 13.4%

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

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9.1 Segmentation

Market Segmentation I: % Share, by value

Organic food and vegetable has 38% share followed by prepared food and others.

Figure 11 market segmentation US

Market Segmentation II: % Share, by value

The United States accounts for 48% of the global organic food market value.

The Europe accounts for a further 42.2% of the global market.

Figure 12 Market share of EU and US of Organic business

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

38%

21.00%

15%

13%

11.00%2.00%

fruit & vegetable

prepared food and others

dairy

beverage

bread and grains

meat fish and poultry

48.10%

42.20%

3.60%6.10%

united states

europe

asia pacific

rest of the world

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9.2 Market Forecasts: USA

In 2015, the United States organic food market is forecast to have a value of $42,531.8 million,

an increase of 49.2% since 2010.

The compound annual growth rate of the market in the period 2010–15 is predicted to be 8.3%.

Table 16 US Organic market forecast (2010-2015)

Year $ million % growth

2010 28,513.1 15.0%

2011 31,316.7 9.8%

2012 34,113.4 8.9%

2013 36,923.6 8.2%

2014 39,730.3 7.6%

2015 42,531.8 7.1%

Source: Philip M. Parker, INSEAD, www.icongrouponline.com

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Chapter: 03

Objective: 03 strategy formulation for the organic business for Arvind Ltd

From procurement to selling strategy: at domestic as well as global level. First farmer harvested

their Agri-produce and collect in their home and then used to sell after knowing the market price.

We collected their produce at procurement center on market price and then and for value

addition cleaning, Grading and sorting carried out. after cleaning, grading and sorting packaging

(50 kg) process would started after packaging the produce, starching and labeling process will

started and then we would store at warehouse and then we will sell it domestic as well as Global

market according to the purchase order from the clients.

10 Value chain: Farmers to consumer:

For the business at domestic and global level following strategy will be taken for Distribution

channel for the organic staple business. For domestic level we will procure from the farmer and

collect it at center and precede it processing center for cleaning, grading and sorting and then we

can directly supply to distributor/ supplier and organic retail outlet or mall and other way we can

store it in warehouse and then supply according to the demand. And for export market also we

can either store in warehouse or directly supply from the processing unit to exporter or export

market.

Harvesting Procuring /collecting

Selling at farm Storing

Cleaning, Grading

and Storing

Stretching/ Labeling

Stretching /Labeling

Packaging

Selling

Domestic

Global

Distributor /wholesaler

Organic Retail outlet /Mall

Exporter/Export

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The channel of distribution includes the original producer, the final buyer and any middlemen -

either wholesaler or retailer. The term 'middlemen' refers to those individuals or institutions who

facilitates, negotiate or selling in the capacity of an agent or broker. In our case Arvind will acts

as middle man. For efficient marketing there would be more than one intermediary. Most

producers work with marketing intermediaries to bring their products to market. These marketing

intermediaries generally make up a marketing channel.

10.1 Major steps Producer: these are the farmer produce agriculture commodities in the field. Under arvind

organic project there are 3538 farmer registered for organic commodities production spread in

132 village of different taluka of Akola District. They produce pigeon pea, Soybean, green gram,

safflower, sunflower, black gram in total 11387.50 Acre of land. Year 2010-11 production of

organic crop is approx 8000 metric ton collectively. So they are the main stale holder of the

organic business project.

Procurement center: in Arvind organic project farmers are divided in to six organic production

centers for the well ordination of inspection and procurement of agriculture commodities. For

business channel point of view this organic center will works as procurement center where

organic produce will be collected from different village.

Processing unit: All type of accessory activities like weighing, stretching, grading (as per

qualities of produce) packaging will takes place will at procurement center.

After procurement of produce at procurement center produce either directly go for export or it

may stored at Arvind ware house .produce could be sold in domestic market as well as

international market. Commodities comes under pulse like pigeon pea, green gram, black gram

will be processed according to requirement of demand in processing unit of Arvind mill.

Soybean, sunflower, sorghum well be sell as whole food. Some organic food may without going

in warehouse it may go for export and in domestic market.

Warehouse: after processing Agri-produce will come in ware house of Arvind mill.

Inspection/acceptance, order preparation/picking, dispatching/delivery and inventory

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management (checking as per system vs. actual stock carried out daily, weekly, monthly or

quarterly basis.Regulation of warehousing business

For establishment of warehousing, you have to register our company under the "Warehousing

(Development and Regulation) Act, 2007. This Act came into force on 01-03-2009 and is meant

to encourage and regulate establishment of ware houses in private sector. The registration has to

be done with the "Warehousing Development & Regulation Authority" established under the

Act. Registration confers several statutory benefits and rights on the owner of the warehouse.

10.2 Business at domestic level: Distributor: for domestic business of organic commodities distributor will work as

intermediary. We will supply the produce to the distributor under legal agreement. Distributor

will sell the products under Arvind company brand name.

Good communication between the distributor and customer ensure unbroken supply chain, and

help the distributor manage its own warehouse inventory, to ensure timely material turn over and

no dead stock or stock out.

The distributor's relationship both with the material supplier and hundreds (or thousands) of

customers gives him leverage to resolve quality issues -- the supplier doesn't want to risk losing

his customer base. Third, the distributor is knowledgeable about all of his suppliers' products,

and can offer technical advice and training to his customers, to help them make the right material

choices. He also can provide market intelligence, alerting end-users to price trends or impending

shortages. Company benefit as well, using use that intelligence to forecast demand or develop

new products based on the distributor's widespread customer base.

Retail outlet/Mall:

With course of urbanization and increase health consciousness among urban people urban retail

out let and mall out let would be a better place for selling the products. Price premium of organic

product is high globally compared to conventional agriculture commodities there for targeting

the organic outlet and mall because those who come to mall are aware of that product. And we

supply directly to the retail outlet and mall according to the demand.

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10.3 Business at Global level: As per the demand analysis at global level our product will be sold in European and US market

and we can directly export to the Europe and US market and also we can export through exporter

agency but the ownership title of the product will be Arvind

10.4 European Regulation for Import from India EU legislation is regulating the production and control of organic food produced within the EU

many organic products come from outside the EU. Indeed, since 1991, EU organic legislation

has provided two import systems for organic produce:

1) A specific third country list on which third countries can be registered if they can Guarantee

an equivalent production and control system for their organic products Equivalent to those

produced in the EU.

2) Import authorizations – in order to provide export possibilities for organic producers in

Third countries not yet on the third country

Before issuing such authorizations the Member States have to make sure that they have sufficient

evidence that these products are produced and controlled according to equivalent

standards.“Equivalent” means that not exactly the same rules have been applied as in the EU,but

that the rules are adapted to local conditions whilst applying the same principles and achieving

the same objective as those in the EU organic legislation. The baseline is that European

consumers have to be able to be confident that the organic food they buy really is „organic‟

whatever its country of origin.

In 2009 EU organic legislation, the Ministers of Agriculture decided to facilitate organic imports

from third countries, centralize the import system and entrust the supervision of imports to the

Commission assisted by the Member States.

Until now only eight countries are on the third country list: Argentina, Australia, Costa Rica,

India, Israel, New Zealand, Switzerland and Tunisia. These countries have demonstrated that

they have national organic production rules and control systems that are equivalent to those

within the EU for certain products.

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The new import system keeps the third country list as the main system, but replaces the import

authorizations by the Member States with two lists of control bodies operating in third countries:

1) By 2011, a list of control bodies and control authorities working according to standards

equivalent to the EU Regulation adapted to local conditions, and

2) By 2013, a further list of control bodies and control authorities working according to the EU

organic standard – applying exactly the same rules as organic farmers and producers in the EU

have to follow.

Control bodies from all over the world which are interested in operating in third countries can

apply to the EU Commission for inclusion in the lists and must provide evidence that they fulfill

the conditions. The Commission assisted by the Member States will check the evidence and

recognize (or not) control bodies to be included in the lists.

Companies in the EU which are importing organic products from third countries have to be

certified organic and are subject to regular controls by acknowledged control bodies or control

authorities. They will apply a risk-based approach when laying their control plans and include

unannounced inspection visits and sampling, where they are analyzing samples for pesticide

residues and for genetically modified materials.

If inspections and analysis raise doubts as to the organic origin a thorough investigation may lead

to the decertification of the products or even the responsible operator. As a consequence, the

products will then no longer be able to be sold as organic. In this way the approval system for

organic imports will be more coherent and transparent, providing organic businesses and

consumers with complete confidence when buying organic products. They can be sure that all of

the businesses involved in the supply chain have been adequately controlled – regardless of

where in the world their organic food comes from.

10.5 USA regulation for import from India The US national organic program (NOP) was fully implemented on oct.21, 2002.the NOP is the

federal law that requires all organic food products to meet the same standards and certified under

the same certification process to export the organic food to the US market. Those producer and

handler want to export organic food to the US market must be certified by accredited organic

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certification agency .the NOP prohibits organic certification agency from exceeding and granting

exceptions to the federal organic standards. In order to qualify for using the organic label

producer and handler must be certified by NOP accredited certification agency .the NOS

establishes four level category based on percentage of organic ingredients in final products these

category includes 100% organic ,organic ,made with organic and less than 70 % organic

ingredients .each category has specific requirement regarding minor ingredients .organic label

must state which certification agency certified the products .Arvind organic has been certified for

its standards of Organic farming and quality by International Accredited Certifying Agency

(Control Union Certification, NETHERLAND)

Control Union Certifications (formerly known as Skal International) certifies that the products

are organic if it fulfills certain criteria set down by the Union.

In India, certification body offers organic certification as per National Standards for Organic

Production, rules equivalent to EC regulation 834/2007 and USDA NOP. This certification is

equivalent to USA organic regulation.

Steps involved in export:

First we need to apply to the Director General of Foreign Trade (DGFT) regional office for

getting export –import code (IEC) numbers. Which are ten digit codes but one should know

that and an individual can only have a single IEC issued against a PAN number, no

proprietor can avail more than one IEC.

When we get the IEC code number then we will have to registered with the concerned Export

promotion Council in order to obtain various permissible benefits given by government and

also they need to registered with the sales tax office and even Export Credit Guarantee

Corporation (ECGC)

After that we will have to go for procuring order by first sending a sample if the client

demanded. And then the client will send a purchase order and if we will find the suitable for

both in terms of rule and regulation policies of contract, pricing policies, freight charges

etc…then we will proceed further otherwise we will stop the negotiation.

And when we will get the purchase order from client in hand then we will arrange the

product according to their demand.

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And when we arranged the product then we will have to make arrangement for quality

control for obtain a certificate of quality and in this case we have a Control Union

Certificate, Netherlands and also certified under National Organic Program for quality

certificate of organic food so we don‟t have to go quality inspection certificate. We can

directly go to inspector of quality control for further proceed.

And after checking the product we will dispatch the product to port for transits.

And then for marine insurance we have to apply to insurance company for product safety in

ocean and the cost of insurance depend on the client those who want to pay the insurance

expenses. And these cost will discussed on purchasing order letter time.

And then we will contact the clearing and forwarding agent for storing the goods in

warehouse and for this process we will required shipping bill issued by custom authority.

When the goods are loaded in to the ship we will get one receipt called Mate‟s receipt issued

by the captain to the ship superintendent of the port and superintendent of the port will

calculate the port charge and the receipt of bill will hand over the to me or carry and

forwarding agents.

And then we will have to pay the port payment and collect the bill of loading from shipping

companies.

Then we need to apply to the relevant Chambers of Commerce for obtaining the certificate of

origin. And we will have to send all set document to the client like starting the date of

shipment, name of the container and other relevant document which is required at the time of

receiving of goods.

According to the rule within 21 days after shipment we will have to present the entire

document at his bank for securitize these document against the original letter/purchase order.

And our Bank (SBI) will send those Document to the client Bank (Bank of New York) for

making payment on the before due date. So that all negotiation can proceed further without

any disruption.

TRANSPORTATION

Ships transport more Cheaper than other means of transportation and 90 percent of the cargo. So

that we will use refrigerator 40 foot container for shipping product from Mumbai to US and

European countries, having capacity 27990 kg of ship container and for domestic transportation

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we will use Truck having capacity of truck is 16 ton and mini truck according to the requirement

for procurement of the produce up to warehouse and processing unit and then we will load the

truck After getting the purchasing order from domestic client (wholesaler/distributor or organic

retail outlet/Mall).and the procedure we followed for transportation is first we will receive the

purchasing order through letter or any medium and then we will transported the goods

according to their requirement and all the loading/unloading rules and regulation negotiated.

10.6 Procedure for export in European Union and USA:

International marketing channel for processing of an export order and getting purchasing order

from the importer client and their payment channel

(1) Getting order from client

(2) Then we agree to fill Order

(6) Goods shipped to

(10&11) (7) Arvind organic Present (12) Bank tells (13) client (3) Client

Arvind organic sell draft to Bank the client for pay Bank arrange

Draft to Bank document arrive for L/C

(14) SBI present matured

Draft and get payment

(8) SBI present draft to Bank of New York (5) SBI informs Arvind Organic

Of letter of credit

(9) Bank of New York returns accepted Draft

(4) Bank of New York sends letter of credit to state Bank of India

Arvind Organic European Union & U.S

State Bank of India Bank of New York

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Process of an Export order:

1) When we will get the receipt of enquiry from the client then we have to submit his offer

giving complete detail of the product and the specific delivery of payment terms and

condition etc…

2) After this process negotiation we will get a purchase order follow by letter of credit (L/C) if

applicable.

3) Then we will pack the goods according to the specification given by the client in purchase

order.

4) And then we will invite the representative of Export inspection agency (EIA) for the

shipment inspection and for obtain the certificate of inspection.

5) When we will get the inspection certificate after that we have to prepare following

Documents:

Invoice

Packing list

ARE 1 from

Marine insurance

Copy of purchase order /letter of credit

Above those documents has to send custom house agents (CHA) based on these documents CHA

agent will complete the octroi formalities and provide port permit and prepare shipping bill

which will be a customs documents and then Custom department will check the export cargo on

the basis of information provided on the shipping bill. If satisfy then cargo allow to loaded on the

board of ship.

The shipping line will give a mate receipts to CHA agents after the payment of ocean freights

and port due obtains the bill of lading (B/L) from shipping line .B/L is a proof of dispatch of

cargo and also a negotiable document. And then CHA agent sends various documents back to

exporter which is:

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Customs attested invoice

Copy of shipping bill

Full set of non board bill of lading.

Copy of purchase order or L/C

Copies of ARE 1 Form

SDF form ( required more than $25000 per invoice)

After that we have to submit above these documents for negotiation to the bank which included:

Commercial invoice

Packing list

SDF form (required more than $25000 per invoice)

Original copy of purchases order

Certificate of origin

Bill of exchange

Shipment advice

After that, bank will scrutinizes the entire above document and if bank will found correct the

entire document then will make payment to exporter against documentations

10.7 warehouse registration For establishment of warehousing, you have to register our company under the "Warehousing

(Development and Regulation) Act, 2007. This Act came into force on 01-03-2009 and is meant

to encourage and regulate establishment of ware houses in private sector. The registration has to

be done with the "Warehousing Development & Regulation Authority" established under the

Act. Registration confers several statutory benefits and rights on the owner of the warehouse.

An applicant for a permit (means the document issued by the appropriate Regulatory authority

that authorized a person to operate a food establishment) to operate a Warehouse facility shall

submit to the Health Authority (officers and agent of District health or the officers and agents of

local Board of Health) properly prepared plans and specifications for review and approval like

facility and operating plan, construction inspection and approval and uncategorized food

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establishment properly prepared plan and specification for review and approval as specified in

current codified law of local, state and central regulation and ordinance.

General Warehouse Requirement:

Warehouse used for storage of pre-packaged, non- potentially hazardous food or packed product

in original boxes or on pallets, with minimum breakdown shall have:

Wall that are smooth and good repair.

Floor that are smooth, non-absorbent, cleanable, durable and maintained in good repair.

Floor and wall junctures which are coved and closed to no larger than 1/32". All base

coving shall be made with the following materials:

(1) Epoxy grout or concrete curbs with a 45° angle at the top.

(2) Stainless steel.

(3) Rubber/vinyl.

20 foot-candles of artificial light at 30" above the floor

Lights over open food shall be shielded. Light fixtures, within reach of pallet moving

equipment and cleaning equipment, shall be protected from accidental breakage by wire

cages, metal, mesh, or equivalent.

Ceilings with no exposed insulation, with use of scrim-sheeting as a minimum

Air curtain(s), dock boot seals, doors with weather-stripping or other approved method

for control of dust, rodents, insects, and birds at receiving doors and at all other openings

into warehouse areas.

A restroom with a toilet and hand washing sink inside the facility serviced with hot and

cold water, approved soap and disposable towels, adequate ventilation, and a self-closing

door. Restroom walls shall have a 4' wainscoting of sealed, impervious material, a sealed

base cove, and sealed impervious material.

Warehouse facilities, built or substantially remodelled after the adoption of these

Regulations, shall have a mop-sink or curbed floor unit serviced with hot and cold

running water. Existing warehouse facilities, with only a hose bib, shall provide for

filling a mop bucket and for disposing of mop water into a sanitary sewer. Hoses attached

to a water source shall have as a minimum an atmospheric vacuum breaker.

shelving or dun age racks, where provided, shall be NSF (National sanitation foundation)

or equivalent with a clearance from the floor as follows:

(1) 6" minimum for up to 36" shelving depth, or

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(2) 12" minimum for shelving >36" depth

Gondolas and removable kick plate type shelving are acceptable only in retail grocery

areas

To facilitate rodent control, general cleaning, and inspection access, clear zones shall be

maintained between walls and pallets in warehouse storage areas and shall be:

(1) 12" minimum if pallets are removed weekly.

(2) 18" minimum if pallets remain in place for more than a week. Facilities with an active

infestation shall maintain 18" minimum clear zone.

Warehouses shall be ventilated such that ambient room temperatures are maintained

between 65°F±2° and 90°F±2°.

CERTIFICATE REQUIRED FOR WAREHOUSE LICENSING:

PFA: Prevention Of Food Adulteration

Food And Drugs

Weight And Measurement Department

Municipal Corporation

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11 Cost Analyses Product Cost involved per quintal for Domestic

market

Cost involved per quintal for global Market

Green gram

Procurement price: Rs 3500

Warehouse cost(stored for two Month) at

rate of Rs 4 per square feet: Rs 2

Processing cost Rs 100

Processing loss assumed : 2%

Packaging in jute bag Rs 70

Labeling Rs 1

Weighing stretching Rs 0.50

Loading / unloading Rs 0.75

Transportation cost Rs 140

Marketing and insurance 5% on total

expenditure

Operation cost 5% on total expenditure

Interest on working capital 12% per

annum

Premium price for the products 10%

Profit margin 10% on total cost

After adding all cost the price will be Rs

5457 per quintal

Final selling price will increase by 56%

Procurement price: Rs 3500

Warehouse cost(stored for two Month) at rate of Rs

4 per square feet: Rs 2

Processing cost Rs 100

Processing loss assumed : 2%

Packaging in jute bag Rs 70

Labeling Rs 1

Weighing stretching Rs 0.50

Loading / unloading Rs 1.25

Transportation cost Rs 140

Shipping cost Rs 153

Levied charge Rs 11

Wharfage cost Rs3.45

Marine insurance 2.25% total procurement price

Freight charge 3.1365%

Miscellaneous cost Rs 2

Marketing and insurance 5% on total expenditure

Operation cost 5% on total expenditure

Interest on working capital 12% per annum

Premium price for the products 10%

Profit margin 10% on total cost

After adding all cost the price will be Rs 5960 per

quintal

Final selling price will increase by 70%

Pigeon pea Procurement price Rs 3000 and

processing loss is 4% ,Other expenses are

same as Green gram

After adding all cost the price will be Rs

4800 per quintal

Final selling price will increase by

61.16%

Procurement price Rs 3000 and processing loss is

4% ,Other expenses are same as Green gram

After adding all cost the price will be Rs 5300 per

quintal

Final selling price will increase by 77%

Black gram Procurement price Rs 3000 per quintal

Processing loss 2%

After adding all cost the price will be Rs

4741 per quintal

Final selling price will increase by 58%

Procurement price Rs 3000 per quintal

Processing loss 2%

After adding all cost the price will be Rs 5207per

quintal

Final selling price will increase by 73%

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Soyabean Procurement price Rs 2300 per quintal

Processing loss 2%

After adding all cost the price will be Rs

3739 per quintal

Final selling price will increase by 63%

Procurement price Rs 2300 per quintal

Processing loss 2%

After adding all cost the price will be Rs 4151 per

quintal

Final selling price will increase by 80%

Sunflower Procurement price Rs 2450 per quintal

Processing loss 2%

After adding all cost the price will be Rs

3953 per quintal

Final selling price will increase by 61%

Procurement price Rs 2450 per quintal

Processing loss 2%

After adding all cost the price will be Rs 4400 per

quintal

Final selling price will increase by 78%

Sesame Procurement price Rs 4500 per quintal

Processing loss 2%

After adding all cost the price will be Rs

6889 per quintal

Final selling price will increase by 53%

Procurement price Rs 4500 per quintal

Processing loss 2%

After adding all cost the price will be Rs 7500 per

quintal

Final selling price will increase by 66%

Safflower Procurement price Rs 2200 per quintal

Processing loss 2%

After adding all cost the price will be Rs

3600 per quintal

Final selling price will increase by 63%

Procurement price Rs 2200 per quintal

Processing loss 2%

After adding all cost the price will be Rs 4000 per

quintal

Final selling price will increase by 82%

Sorghum Procurement price Rs 1500 per quintal

Processing loss 3%

After adding all cost the price will be Rs

2617 per quintal

Final selling price will increase by 74%

Procurement price Rs 1500 per quintal

Processing loss 3%

After adding all cost the price will be Rs 2700 per

quintal

Final selling price will increase by 98%

Ajwain Procurement price Rs 9700 per quintal

Processing loss 1%

After adding all cost the price will be Rs

14195 per quintal

Final selling price will increase by 46%

Procurement price Rs 9700 per quintal

Processing loss 1%

After adding all cost the price will be Rs 15167per

quintal

Final selling price will increase by 56%

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Table 17production of organic staple food under Arvind Organic project

Source: MIS, Arvind Ltd

Crop Name Area under cultivation Production (qt/ac.) Total Production (qt.)

Approx Total Production (qt.)

Green gram 7730.06 4.68 36201.39 36201

Pigeon pea 2867.9 4.04 11593.4 11593

Black Gram 1123.15 4.83 5417.85 5418

Soybean 2429.6 6.16 14951.03 14951

Sunflower 205.5 4.7 962.05 962

Sesame 69.3 4.82 333.8 334

Safflower 11 4.33 47.64 48

Sorghum 1962.52 5.77 11309.22 11309

Ajwain 34.45 4.7 162.02 162

Total production in qt. 80978.4 80978

Total production in MT 8097.84 8097.8

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11.1 Cost Analysis for Domestic Market Table 18 Cost analysis for Domestic Market

Cost Analysis (Packaging 50kg)

Particular Green gram Pigeon pea

Black gram Soyabean Sunflower Seasame Safflower Sorghum Ajwain

Total Period (sowing-

Harvesting)

4 Month 6 Month 3 Month 3.5 Month 6 Month 3.5 Month 4 Month 3 Month 4 Month

Procurement Price 126703500 34779000 16254000 34387300 2356900 1503000 105600 16963500 1571400

Warehouse Cost Rs4/seq ft

(20000 seqft.)

72402 23186 10836 29902 1924 668 96 22618 324

Processing Cost cleaning

Rs 100/qt

3620100 1159300 541800 1495100 96200 33400 4800 1130900 16200

Processing Loss 724.02 463.72 108.36 299.02 19.24 6.68 0.96 339.27 1.62

Quantity avaliable for

Selling

35476.98 11129.28 5309.64 14651.98 942.76 327.32 47.04 10969.73 160.38

Pacakaging Cost( jute

Bag)/Rs35/50Kg

2483388.6 779049.6 371674.8 1025638.6 65993.2 22912.4 3292.8 767881.1 11226.6

Labelling (printing) 35476.98 11129.28 5309.64 14651.98 942.76 327.32 47.04 10969.73 160.38

Weighing streaching 17738.49 5564.64 2654.82 7325.99 471.38 163.66 23.52 5484.865 80.19

Loading unloading 26607.735 8346.96 3982.23 10988.985 707.07 245.49 35.28 8227.2975 120.285

Transportation cost

procurement center to

processing unit

1086030 347790 162540 448530 28860 10020 1440 339270 4860

Processing Unit to

warehouse

709539.6 222585.6 106192.8 293039.6 18855.2 6546.4 940.8 219394.6 3207.6

Warehouse to Mumbai 3192928.2 1001635 477867.6 1318678.2 84848.4 29458.8 4233.6 987275.7 14434.2

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Total Transportation cost 4988497.8 1572011 746600.4 2060247.8 132563.6 46025.2 6614.4 1545940.3 22501.8

Total Expenditure 137947712 38337587 17936857.9 39031155 2655702 1606742.07 120509.04 20455521.3 1622013.26

Marketing And insurance

Expenditure

6897385.6 1916879 896842.895 1951557.8 132785.1 80337.1035 6025.452 1022776.06 81100.6628

operation cost @5% on

total Expenditure

6897385.6 1916879 896842.895 1951557.8 132785.1 80337.1035 6025.452 1022776.06 81100.6628

interest on Working

Capital 12%pa for 6Month

8276862.7 2300255 1076211.47 2341869.3 159342.12 96404.5242 7230.5424 1227331.28 97320.7953

Total cost per quintal 160019345 44471601 20806755.2 45276140 3080614.3 1863820.8 139790.486 23728404.7 1881535.38

10% premium price 16001935 4447160 2080675.52 4527614 308061.43 186382.08 13979.0486 2372840.47 188153.538

total cost for selling 176021280 48918761 22887430.7 49803754 3388675.8 2050202.88 153769.535 26101245.2 2069688.91

selling price per quintal 4961.5632 4395.501 4310.54284 3399.1143 3594.4204 6263.60406 3268.91018 2379.38811 12904.9066

cost of selling price per kg 49.615632 43.95501 43.1054284 33.991143 35.944204 62.6360406 32.6891018 23.7938811 129.049066

profit 17602128 4891876 2288743.07 4980375.4 338867.58 205020.288 15376.9535 2610124.52 206968.891

sell at 10% margin 193623408 53810638 25176173.7 54784130 3727543.3 2255223.17 169146.489 28711369.7 2276657.8

selling price per kg @10% 54.577196 48.35051 47.4159712 37.390257 39.538624 68.8996447 35.958012 26.1732692 141.953972

Purchasing price 35 30 30 23 24.5 45 22 15 97

Total cost for selling per kg 54.58 48.35 47.42 37.39 39.53 68.89 35.95 26.17 141.95

% increase 55.942857 61.16667 58.0666667 62.565217 61.346939 53.0888889 63.4090909 74.4666667 46.3402062

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11.2 Cost Analysis for Global Business Table 19 Cost Analysis for Global Market

Cost Analysis (Packaging 50kg)

Particular Green gram

Pigeon pea Black gram Soyabean Sunflower Sesame Safflower Sorghum Ajwain

Total Period (sowing-

Harvesting)

4 Month 6 Month 3 Month 3.5 Month 6 Month 3.5 Month 4 Month 3 Month 4 Month

Procurement Price 126703500 34779000 16254000 34387300 2356900 1503000 105600 16963500 1571400

Warehouse Cost Rs4/seq ft

(20000 seqft.)

72402 23186 10836 29902 1924 668 96 22618 324

Processing Cost cleaning

Rs 100/qt

3620100 1159300 541800 1495100 96200 33400 4800 1130900 16200

Processing Loss 724.02 463.72 108.36 299.02 19.24 6.68 0.96 339.27 1.62

Quantity avaliable for

Selling

35476.98 11129.28 5309.64 14651.98 942.76 327.32 47.04 10969.73 160.38

Pacakaging Cost( jute

Bag)/Rs35/50Kg

2483388.6 779049.6 371674.8 1025638.6 65993.2 22912.4 3292.8 767881.1 11226.6

Labelling (printing) 35476.98 11129.28 5309.64 14651.98 942.76 327.32 47.04 10969.73 160.38

Weighing streaching 17738.49 5564.64 2654.82 7325.99 471.38 163.66 23.52 5484.865 80.19

Loading unloading 26607.735 8346.96 3982.23 10988.985 707.07 245.49 35.28 8227.298 120.285

Transportation cost

procurement center to

processing unit

1086030 347790 162540 448530 28860 10020 1440 339270 4860

Processing Unit to

warehouse

709539.6 222585.6 106192.8 293039.6 18855.2 6546.4 940.8 219394.6 3207.6

Warehouse to Mumbai 3192928.2 1001635.2 477867.6 1318678.2 84848.4 29458.8 4233.6 987275.7 14434.2

shipping cost

Refrigaretor 40 foot

container/capacity 27990kg

cost per container 42930/-

5427977.9 1702779.8 812374.92 2241752.9 144242.3 50079.96 7197.12 1678369 24538.14

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Levied charges Rs 110/ton 390246.78 122422.08 58406.04 161171.78 10370.36 3600.52 517.44 120667 1764.18

docks Wharfage cost 122395.58 38396.016 18318.258 50549.331 3252.522 1129.254 162.288 37845.57 553.311

Loading unloading in cargo 17738.49 5564.64 2654.82 7325.99 471.38 163.66 23.52 5484.865 80.19

Marine insurance @2.25 2793812.2 751226.4 358400.7 758239.97 51969.65 33141.15 2328.48 370228.4 35002.94

Frieght [email protected]% 3894574.2 1047209.6 499610.58 1056986.5 72445.69 46198.763 3245.9011 516098.4 48794.09

miscelleneous cost Rs

2/quintal

70953.96 22258.56 10619.28 29303.96 1885.52 654.64 94.08 21939.46 320.76

Total Transportation cost 17706197 5261867.9 2506985 6365578.3 417201 180993.15 20183.229 4296573 133555.4

Total Expenditure 150665411 42027444 19697242 43336486 2940339 1741710 134077.87 23206154 1733067

operation cost@5 % on

expenditure

7533270.5 2101372.2 984862.12 2166824.3 147017 87085.501 6703.8935 1160308 86653.34

Marketing And insurance

Expenditure

7533270.5 2101372.2 984862.12 2166824.3 147017 87085.501 6703.8935 1160308 86653.34

interest on Working

Capital 12%pa for 6 month

9039924.6 2521646.7 1181834.5 2600189.1 176420.4 104502.6 8044.6721 1392369 103984

Total cost per quintal 174771876 48751836 22848801 50270324 3410794 2020383.6 155530.33 26919138 2010358

10% premium price 17477188 4875183.6 2284880.1 5027032.4 341079.4 202038.36 15553.033 2691914 201035.8

total cost for selling 192249064 53627019 25133681 55297356 3751873 2222422 171083.36 29611052 2211393

cost of selling price per

quintal

5418.9805 4818.5524 4733.5943 3774.0535 3979.669 6789.7531 3636.9762 2699.342 13788.46

Cost of selling price per kg 54.189805 48.185524 47.335943 37.740535 39.79669 67.897531 36.369762 26.99342 137.8846

Profit 19224906 5362701.9 2513368.1 5529735.6 375187.3 222242.2 17108.336 2961105 221139.3

Sell @ 10% margin 211473970 58989721 27647050 60827092 4127060 2444664.2 188191.7 32572157 2432533

Selling price per kg 59.608786 53.004077 52.069537 41.514588 43.77636 74.687284 40.006738 29.69276 151.6731

Purchasing price 35 30 30 23 24.5 45 22 15 97

Selling per kg of the

product @10%

59.6 53.01 52.1 41.51 43.78 74.69 40.01 29.69 151.67

% Increase 70.285714 76.7 73.666667 80.478261 78.69388 65.977778 81.863636 97.93333 56.36082

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Assumption for cost Analysis: 1) Procurement cost of commodities: we purchased the products farm level at APMC market

price and transportation charge will be negotiable.

2) Warehouse cost: Rs 4 /-sq feet, and we had average storing period for 4 month.

3) Processing cost: for cleaning Rs 1/ kg.

4) We had assumed processing lost minimum 2% and maximum 4% depending upon the

products.

5) Packaging cost: we will pack products in 50 kg jute bag and their charges Rs 35/bag

6) Labeling: we will print on bag for company and organic logo as stamp charges would be 50

paisa per bag.

7) Weighing and stretching: 25 paisa per bag

8) Loading & unloading: from center to warehouse 75 paisa per bag

9) Transportation cost: We Assumed

Procurement center to processing Unit Rs 30 paisa/ kg

Processing unit to Warehouse Rs 20 paisa/ kg

Warehouse to Mumbai Rs 90 paisa/kg

10) Marketing and insurance Expenditure 5 percent on total expenditure

11) Operation cost 5 percent on total expenditure

12) Interest on working capital 12percent per annum for six months

13) We assumed 10 percent premium price for this product And for Global Business:

14) Shipping charges, we used Refrigerator 40 foot container having capacity 27990 kg and their

cost would be Rs 42930/ container.

15) Levied charges Rs 110 per tons

16) Docks Wharfage charge 3.45 per quintal

17) Loading unloading in cargo Rs .50 per bag

18) Marine insurance @2.225 percent

19) Freight tax @3.1365 percent

20) And we also assumed miscellaneous cost per bag @ Rs 1/bag

21) And we decided profit Margin at 10 percent and after adding all cost, the cost of the product

increases on average 70 percent.

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12 SWOT Analysis of organic Business STRENGTH WEAKNESS

Wide varieties of commodities and vegetable can

be grown organically

Very less consumption of chemicals in India

as compared to developed nations. These

areas can be turned into organic

Organic pockets existing in different parts of the

country

Farmers as well as Government interests are rising

in organic

Various niches in fruits and vegetables can be

created.

Indian corporate investing in agribusiness

especially in organic farming

Short shelf life varieties

Lack of farmer awareness about agricultural

practices, products and technologies for organic

farming.

Quality not competitive in the domestic and

international market.

Price competitiveness

Lack of market information and intelligence

Global marketing research lacking

R & D base in organic food production lacking

Favorable government vision.

WTO offering global opportunities.

Price- premiums in different markets.

Export opportunities in new product/market

(section).

Rising demand for organic products in

major markets like USA, Europe and Japan.

Natural food stores opening up

Competition from domestic industry.

Threat from imported products.

Non-tariff barriers may be imposed by

developed nations.

OPPORTUNITIES CHALLENGE

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12.1 Situation Analysis

(External/outside/Around Us)

Opportunities

Price premium in different market

Export opportunities

Sufficient input is available like (land,

infrastructure, human resource etc,)

Sufficient production

Obstacles

Lack of awareness and willingness to

pay among people

Complicated rules and regulation and

varies from country to country

Conversion period from conventional

to organic farming is bit longer.

Lack of market at local level

12.2 Internal /within us

Strength

Brand image of the company, facilities

like warehouse, pulse processing unit

etc…

Certified products under CUC

Weakness

Lack of market

High competition in market and low

consumption pattern

Arvind organic is not registered under

any company acts.

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13, 4Ps model for organic business

Products

Vast range of organic produce(pigeon pea, sunflower, safflower,

green/black gram, ajwain, Sorghum, Sesame soybean)

Purely organic certified under internal inspection with control union

certification (NETHARLAND).

.The quality control systems are such that the products are checked and

rechecked right from the field, grading and packing and during shipment,

which makes it possible to meet the high quality standards of Europe and

other developed nations

Producer: small holder associated with SHGs

Country of origin : India

Packaging: 50 kg wrapped in jute bag, labeled with organic logo.

Price

Cost plus price: total cost from farm to the market plus 10%profit

margin for export market, and for domestic business we work through

market penetration by offering minimum price of the product for long

term business growth .and also for market sustainability.

Price differentiation discount based on volumes,rediness to inter long

term partnership ,and provision for pre –financing

Place

Direct shipping to the EUs and USA countries

Or via exporter

Small as well as big volume directly sold to the distributor ,organic retail

out let and mall

Promotion

Personal selling :getting in contact with potentially interested final

distributor /wholesaler

Participation in organic and fair-trade fair

Inviting potential client to the field visit

Promotional material(pamphlet) for clients and or consumer

After sales follow-up client satisfaction and distributor satisfaction

For domestic level promotion we will use electronic media and print

media.

We also promote mouth to mouth promotion by offering best quality of

products at low price.

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Conclusion After the study it is concluded that the business is viable. In year 2010-11 there was 8097.84

metric ton of organic food produced by near 3538 farmers in Akola district under ARVIND

contract farming in strict internal and external inspection agency. Due to lack of local market at

local level it was necessary to find out the suitable market so that business would viable and

sustainable in long term .study found that there are huge demand of organic food in metro cities

and in developed countries like USA.Countries of European Unions. Instead of huge demand

there is also loop whole for the organic business at domestic as well as global level. complex

export procedure and lack of universal certifying standard are the major problems for business at

global level .at domestic level people are unaware of advantage of organic food consumption and

there are lack of willingness to pay extra money for the organic staple food. Following table

shows the purchasing price and selling price of organic staple food at domestic as well as global

level.

Green gram Pigeon pea Black gram Soybean Sunflowe

r

sesame safflowe

r

Sorghum Ajwain

Purchasing price

/kg

35 30 30 23 24.5 45 22 15 97

Cost of selling at

global /kg

57.48 53.01 52.1 41.51 43.78 74.69 40.01 29.69 151.67

% increase in cost 64% 77 74 80 79 66 82 98 56

Cost of selling at

domestic level /kg

54.6 48.37 47.44 37.42 39.57 68.93 35.99 26.2 141.99

% increase 56 61 58 63 62 53 55 75 46

Total profit

domestic level

Business

17611366.5 4894834.67 2290125.74 4984190.9 339113.18 205105.5 15389.2 2613010.6 2070010.2

Total profit @US

&EU

18539222.5 5363236.2 2513623.02 5530438.94 375232.56 222257.9 17110.59 2961631.8 221147.03

The cost involved in our project at domestic level business is Rs 30.15crore and for export

business Rs 32.49 crore .In this particular business we will charges 10% Margin on total

expenditure and after charging 10% profit the cost will be at domestic level business is Rs 36.45

crore and for export market is Rs 40.07crore and in overall business company would get profit of

3.31crore in domestic market where profits will be gained 3.64 crore in global market

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Recommendations We find that organic staple business is in nascent stage in Indian market and consumers are

unaware about the organic food but it is increasing rapidly in domestic as well as global markets.

It is a good opportunity for the ARVIND LTD. to promote organic contract farming in terms of

market sustainability of the business as well as sustainability of the environment. Even ARVIND

LTD involved in organic staple business but it is not registered under any company acts so

registration is important for gaining brand image. ARVIND LTD has vast infrastructure

(warehouse, dal mill, and procurement center) as well as skilled human resources so in this point

of time it is very necessary to promote the organic business by different electronic as well as

print media. Warehouse of ARVIND LTD. is not registered by government so before full fledge

business of organic staple business it is necessary that it should get registration. During our visit

to warehouse we found that nearby area of warehouse is not clean sometime there might be

chance of insect may infect the stored food. So storing of commodities is pure hygiene condition

is very important. Farmers had formed the SHGs for better coordination among them so it is

necessary that it should be registered.

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14 ANNEXURE

14.1 Certified organic land (Acre) Table: 20. Annexure organic certified land

Center Name No.

of

SHG

s

No. of

Villages

No. of

Farm

ers

Total

Land

Cotton Green

gram

Pigeon

Pea

Black

Gram

Soybean Sunflower Sesame Sorghum Safflower Ajwain

Akhatwada*

13 9 230 1751.40 953.45 725.95 176.90 4.00 37.50 4.00 3.00 139.35 0.00 0.00

Akhatwada

23 19 361 2383.35 1127.25 1178.45 308.25 8.50 50.50 30.50 5.25 205.65 0.00 0.00

Chohotta* (Bazar)

22 18 332 2592.35 1488.80 942.90 256.33 14.30 46.60 0.00 6.60 136.60 0.00 7.00

Chohotta (Bazar)

23 21 291 2430.55 1232.70 899.75 270.55 23.10 37.00 0.00 9.60 276.10 0.00 11.90

Mazod* 16 15 357 2674.05 1586.50 466.70 272.80 181.35 599.00 26.00 3.75 173.70 0.00 0.20

Mazod 20 18 262 2023.85 1142.45 214.75 183.25 47.80 563.45 0.00 0.00 146.00 5.00 0.00

Nimba 30 20 470 3314.50 2105.75 707.50 389.20 455.10 220.25 141.00 20.75 335.47 4.00 8.00

Paras* 7 7 151 1038.90 633.80 167.60 163.75 98.50 126.00 0.00 10.50 118.15 0.00 5.95

Paras 30 23 459 3451.90 2304.55 525.40 460.60 278.45 154.50 0.00 7.15 240.25 2.00 0.40

Ramgaon*

10 7 202 1502.20 759.30 634.08 135.35 2.50 206.10 0.00 1.30 40.00 0.00 0.50

Ramgaon 22 15 423 3232.30 1673.30 1272.98 248.15 9.05 388.70 0.00 1.40 150.25 0.00 0.50

Total 216 132 3538 26395.3 15007.85 7736.06 2865.13 1122.65 2429.60 201.50 69.30 1961.52 11.00 34.45

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14.2 Distributor of USA Table 21 Annexure list of distributor of USA

USA

Sr.No NAME OF THE

DISTRIBUTOR

TYPES OF STAPLE

FOOD

ADDRESS CONTACT NO/EMAIL

1 Bushman organic

marketing

1180 210th Ave, 52161 ,OSSIAN,

lowa, USA

2 EDEN FOODS Cereals 701 Tecumseh Road, Zip: 49236,

CLINTON, Michigan. USA,

[email protected]

3 FRANKFERD FARMS

FOODS

Safflower 717 Saxonburg Blvd, ZIP:

16056,SAXONBURG ,

Pennsylvania, USA,

[email protected]

4 GEORGES ORGANICS

INTERNATIONAL

Sunflower P.O. Box 1829 ,ZIP: 93024

,California, USA,

mailto:[email protected]

5 HEARTLAND MILL,

INC.

Cereals Rt. 1, Box2 67863

MARIENTHAL Kansas , USA

[email protected]

6 ARROWHEAD MILLS Soybean P.O. BOX 2059 ZIPTX

79045 HEREFORD Region

Texas USA

http://www.arrowheadmills.com/

7 DAKOTA GOURMET /

SUNOPTA

Sunflower 896 22nd Avenue North 58075

WAHPETON North Dakota, USA

[email protected]

8 FERRY-MORSE SEED

COMPANY

Seeds 601 Stephen Beale Drive 42041

FULTON Kentucky, USA

[email protected]

9 GRAIN MILLERS INC. Seeds Cabriole Center 9531 West 78th

Street Suite 400 55344 EDEN

PRAIRIE Minnesota,USA

http://www.grainmillers.com/

10 ANNIE S NATURALS 564 Gateway Drive 94558

NAPA California, USA

[email protected]

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14.3 Distributor of European Countries Table 22 List of Distributor European Countries

SR.

NO

NAME OF WHOLESALER &

DISTRIBUTOR

STAPLE FOOD CONTACT ADDRESS CONTACT NO /EMAIL

1 OFP ORGANIC FOOD

PARTNERS GMBH

Soyabean, Sunflower,

Safflower, Green

gram

Nikolaus Gross Str. 40,Zip

:45886,GELSENKIRCHEN,Nordrhein-Westfalen –

Münster ,GERMANY

www.organicfoodpartners.co

m

2 BIO-SPHAERE Greegram Koenigsbruecker Str. 76 ,ZIP: 01099 ,DRESDEN,

Germany [email protected]

3 DISTRINAT Safflower Avenue Paul Langevin ,ZIP: 17183,PERIGNY CEDEX

,FRANCE, +33 5 46520922

4 VOSSEN Av. Albert 218 ,ZIP: 1190 ,BRUSSELS,BELGIUM, www.vossenbio.com

5 BIO VITA FOOD PRODUKT GMBH

Sunflower Walter-von-Selve-Str. 2 31789 HAMELN Niedersachsen - Hannover

GERMANY

49515145387

6 CAMPANOSTRA Sesame Address Le Peyrou

12240 PRADINAS MIDI-PYRENEES - Aveyron FRANCE

[email protected]

7 HAITOGLOU BROS. S.A. Cereals Address Kalochori

ZIP 57009 THESSALONIKI Thessaloniki GREECE [email protected]

8 HAEFLIGER MELIOR GOURMET

Wheat, sunflower Muehleweg 2-4 3360 HERZOGENBUCHSEE Bern SWITZERLAND

[email protected]

9 COMAGRI OIL S.R.L Soyabean Via Brignano, 53

24047 TREVIGLIO

LOMBARDIA - Bergamo ITALY

[email protected]

10 BORLIX N.V. Wheat, Sorghum Lanceloot Blondeellaan 15

8380 ZEEBRUGGE West-Vlaanderen BELGIUM

[email protected]

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14.4 distributor of India Table 23 List of Distributors of India

Sr.no Name of the Wholesaler Staple food Contact Address contact no

1 VANTAGE FEED FOOD

PVT LTD

Sorghum 13/12, Malviya Nagar ,ZIP:

302017,Jaipur, Rajastha,

[email protected]

2 NATURE'S DELIGHT Soybean Village -Hothian ,ZIP:

144601,Kpurthala ,

[email protected],

3 NATURAL ORGANIC

FARMS

Safflower, Sunflower 318/N-3 CIDCO ,Marine Lines ,Zip:

431003,AURANGABAD,

MAHARASTRA,

[email protected]

4 AMIT GREEN ACRE PVT.

LTD

Sesame 511, Lotus House, 33A ,ZIP: 400020

MUMBAI ,

[email protected]

5 AGROCEL INDUSTRIES

LTD

Soyabean Plot No. 13, 2nd Floor, Aradhana

,Indl.Devl.Corp,Near Virwani Ind. Es

,Zip: 400063

[email protected]

6 RAPID OVERSEAS Sesame 407, Baleshwar Avenue

380056 AHMEDABAD Gujarat

[email protected]

7 ACCURA ORGANIC

FOODS

Soyabean ,Safflower Address 402, Shilp Square - B, Opp.

Himalaya Mall, Drive-in Road,

380054 Ahmadabad

[email protected]

8 KITTU EXPORTS Pulses Address No. 14 1st Floor Sewa Nagar

Market 110003 NEW DELHI

[email protected]

9 PRO ORGANIC

FARMACY

Pigeon Pea Address 1/342 , BALAMURUGAN

NAGAR , REDHILLS ZIP 600067

CHENNAI INDIA

[email protected]

10 INDIA TRADING

COMPANY

Beans Address 1004, Nirmal Tower, 26

Barakhamba Road

ZIP 110001

NEW DELHI

[email protected]

Page 77: Mts 01 report @ arvind ltd

Arvind Ltd KiiT School of Rural Management MTS 01 Page 77

Bibliography 1) http://www.fas.usda.gov/info/agexporter/2000/june/organic.htm

2) http://www.fas.usda.gov/posthome/useu/usda.html

3) http://www.organic-bio.com/en/company/7555-FRANKFERD-FARMS-FOODS/

4) http://www.organic-world.net/yearbook-2011-contents.html

5) http://www.apeda.gov.in/apedawebsite/index.asp

6) http://www.eximbankindia.com

7) http://www.msamb.com/english/apmc/default.htm

8) http://ec.europa.eu/competition/sectors/agriculture/overview_en.html

9) http://www.organiclinks.net

10) http://www.suminterindiaorganics.com

11) http://www.namdharifresh.com

12) http://www.fairtradeindia.in

13) http://agricoop.nic.in

14) http://www.fao.org/DOCREP/004/W3240E/W3240E06.htm

15) http://www.organic-world.net

16)http://michiganorganic.msu.edu/uploads/files/31/rossman%20pp.pdf

17)http://www.eximguru.com/exim/guides/how-to-export/ch_5_swot_analysis.aspx

18)http://www.foreign-trade.com/reference/ocean.cfm

19) http://ofai.org

20)http://agmarknet.nic.in

21) http://www.ifoam.org/about_ifoam/inside_ifoam/annual_reports.html

22) http://www.wto.org

23) http://www.myownbusiness.org/plans/index.html