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    Comprehensive analysis of

    The Quality Assurance for the export of grapes for

    The Year 2011of Adani Agrifresh Limited

    SUBMITTED TO

    Mr. BADADE KUNAL.

    Submitted By

    Chandsure Shilatai Shivraj

    M.Com.2nd

    Roll No-5161

    BATCH 2011

    SHREE SWAMI RAMANAND TEERTH UNIVERSITY OF NANDED

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    DECLARATION

    This to declare that IChandsure Shilatai Shivraja student ofSHREE SWAMI

    RAMANAND TEERTH MARATHWADA UNIVERSITY OF NANDED pursuing PostGraduate in COMMERCE (batch 2011-12). I have given original data and

    information to the best of my knowledge in the project report titled

    Comprehensive analysis of the Quality assurance for the export of grapes for

    the year 2010of Adani Agrifresh Limited.

    And that no part of his information has been used for any other assignment

    but for fulfillment of the requirement towards the completion of said course.

    I also agree in principle not to share the vital information with any other

    person outside the organization and that I have not submitted it before for any

    award or any other title degree or diploma.

    Chandsure Shilatai date:

    S.R.T.M..U Place.

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    ACKNOWLEDGEMENTC

    KNT I owe a great deal to SHREE SWAMI RAMANAND TEERTH MARATHWADAUNIVERSITY OF NANDED for laying the building blocks of logic andpragmatism in our life. This report, in a way is a reflection of these values. Theorganizational traineeship segment (OTS) provided us with a uniqueopportunity of working with an organization.

    I would like to express my earnest gratitude and thanks to Mr. Arun

    Kshirsagar, director for his support and kind blessings.I am also thankful to our

    faculty guide Mr. Palnitkar Atmaram & Mr BADADE KUNAL. for his

    encouragement and guidance throughout the project.I am highly indebted to

    Mr.uday kadam for providing me with exceptional opportunity of working for a

    dynamic organization like Adani agri fresh (ltd). I am very grateful to Mr.

    Ganesh Sadaphal who guided me in the project period.

    My heart felt thanks to my project guide Mr. Ashok Govande for constant

    follow-up and valuable suggestions provided throughout the project. He has

    always been an ever lasting source of inspiration and guidance.

    I also thank all the respondents who have given their valuable time, views

    and authentic information for this project including Mr. Ashok Govande .

    I also grateful to all of them who are directly or indirectly involved in driving this

    project to a success. I would like to thank my friends and colleagues for their

    continuous support.

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    Executive Summary

    On the basic of internal data study of the company it can be said that quality

    control parameters are very stringent for export to Europe Nations.

    Research Methodology: internal data study of the company

    Important Findings: most important finding from the secondary data can be

    represented by two graphs. As shown below major varieties of grapes that are

    export in the year 2008-09 by field Fresh are Thompson Seedless.

    Shard seedless is exported mostly to Dubai and Middle East while

    Thompson Seedless is exported mostly to European nations. (is X-axis parameter

    is it no.of week)

    Quality and price related parameters are shown below.

    For Thompson Seedless.

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    Average price paid to farmers for this variety of grapes around Rs 35.00 Average

    weight of bunch recorded is 225 gm and the brix content is around is18.00%Size

    of the berry was 16.35 and the diseased produce received at the pack house is less

    than 1%.

    For Sharad Seedless Variety.

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    INDEX

    Sr.no Chapters Page

    no.1 Chapter -I

    1.1 Introduction 91.2 Adani Group Profile 111.3 Grapes 131.4 Market Scenario 141.5 Period of price fluctuation 14

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    1.6 Objectives of research 162 Chapter - II

    2.1 Export Of Grapes 182.2 Export Specification 19

    2.3 Export Specification Of DifferentCountry 22

    3 Chapter III

    3.1 Weight Of The Bunch 253.2 Average Size Of The Grapes 26

    3.3Average Brix Of The Grapes 273.4Price Paid To The Farmer During The Season 28

    4 Chapter IV

    Chain of events in Grapes export

    4.1. Residue Analysis 314.2. Harvesting 31

    4.3 Knitting and Sorting/ Grading 31

    4.4 Weighing and Packing 32

    4.5 Pre cooling and Cold Storage 33

    4.6 Palletization 33

    4.7 Before palletization 33

    4.8 Loading of container 35

    4.9 Procedure of Shipment 36

    4.10 Post Landing Cost: 37

    5 Chapter V

    6 Conclusion 41

    7 Suggestions

    8 Exports

    9 Imports

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    10 Questioner

    11 Preface

    12 Hypothesis

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    CHAPTER I

    INTRODUCTION,

    MARKET SCENARIO,

    PRICE FLUCTUATION,

    EXPORT SPECIFICATION

    OF GRAPES.

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    1.1 INTRODUCTION

    Today India is the second largest producer of the fruits (45.5 Million tons)

    and Vegetables (90.8 Million tons ) in the world ,contributing 10.23%and

    14.45%of the total world production of fruits and vegetables respectively .India

    has made a fairly good progress on horticulture Map of world with total annual

    production of The horticulture crops touching over 149 million tons India has

    been bestowed with wide range of climate and physio-geographical conditions and

    as such is most suitable for growing various kinds of horticultural crops such as

    fruits, vegetables, flowers , nuts , spices and plantation crops.

    With the focused attention given to horticulture, there has been spectacular

    change in terms of adoption of new technologies, production and availability of

    horticulture products. Fruits and vegetables constitute around 10 per cent of the

    total agriculture production of the country. This sector offers enormous potential

    for export.

    According to FAO, the export of fruits from India in 2003-04 US $166

    million and that of vegetables US $ 205 million .Indias export of fruits and

    vegetables is more concentrated towards Asian region. Asian region accounted for

    75% of total fruits and vegetable export 2003-04.The export to European and

    American market is very less due to imposition of stringent quality measures. But

    in the last 3-4 year the export of fruits and vegetable Europe has been increasing

    with the adoption of Good Agriculture practices ( GAP ) by Indian farmer. Also

    the APEADA is taking active role in establishing many quality testing laboratories

    and adequate documentation protocol across the country to boost the export of

    perishables.

    Maharashtra is the one of the largest state In the production of fruits

    and vegetable contributing nineteen percent of the total fruit production in

    the country. The state produces around nine million tones of fruits having

    productivity of 16 MT per hectare of , which is fairly good when compared

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    to countrys average Of 12 MT. it grows commodities like grapes,

    pomegranate, mango, sapota , oranges ,lime, strawberry, jackfruits etc in

    large quantity .The state holds prestigious position in vegetable production

    contributing 5% of the production and stands 7 in the country. Total

    production of vegetables in Maharashtra is approximately 5 million tones.Because of close proximity to Mumbai port and metropolitan market .the

    state enjoys the comparative advantage in export as well as long distance

    In certain commodities the state has occupied unique and prestigious

    position , e.g. mango ,pomegranate, grapes , onion.

    Highly perishable nature of his fruits and vegetable make their marketing

    system more costly and complex. Timely and procurement of fruits and

    vegetable in bulk is of immense importance for exporters. Transportationplays an important role in fruits and vegetable marketing.

    The exporter has to meet the specific qualitative and quantitative

    requirements of the importer. The packaging, residue testing, documentation

    and phyto sanitary certification has to be met in order To export.

    So establishing an efficient backward linkage is must for exporting fruits

    and vegetables.

    1.2 ADANI GROUP PROFILE

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    Adani Group, founded in 1988, is one of the fastest growing businesshouses in India.

    The Adani Group has its roots in its flagship company, Adani Enterprises

    Ltd. (formerly known as Adani Exports Ltd.), which has been established byMr. Gautam S Adani in 1988 as a partnership firm with an initial capital ofRs. 5 lacs.

    Through his entrepreneurial vision, global aspirations, hard work, qualitystandards and customer centric approach, Mr. Gautam Adani hastransformed the Group in one of its kinds which has crossed the totalrevenue of INR 180 billion on March 31, 2007.

    Other company of adani group-

    1- Adani Agrifresh Ltd2- adani wilmar ltd3- adani logistics ltd4- adani enterprise ltd

    ADANI AGRI FRESH LTD.

    Prolonging the shelve life of fruits and vegetables and there by creating a

    business plan.

    Project conceived by June 2005 and completed in 14 months, 3 CA storeswithin a year including procurement of land.

    FOCUS - Strong backward integration for product availability.

    Developing procedures and systems in both infrastructure and manpower tomeet the world standards.

    To tap potential of Indian market.

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    VISION - To provide safe, hygienic, and fresh quality fruits.

    Investment in technology and infrastructure to build and integrated supply

    chain of fruits and vegetables.

    Build strong network with farmers, right from their growing by assistingthem in technology.

    To bring transparent product handling system that will benefit farmers.

    ACHIEVEMENT- Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric

    pack houses in Shimla district at three different placed Viz. Rampur, Sainjand Rohru.

    First time in India introduced Controlled Atmospheric storage facility.

    First time in India introduced Optical Sorting-Grading facility for fruits.

    Procured 18000 MT apples from Shimla and Kinnor district of HimachalPradesh.

    Set up strong marketing network in 30 Major towns of India.

    Introduced first brand Farm Pik in apple.

    PROPOSED PLAN FOR MAHARASHTRA

    During very first season (2007-08) Adani Agrifresh Ltd. exported 50Container of Grapes to European Nations from Nashik District.

    .Other products that company is planning to export are Pomegranate, Onion,Banana from Maharashtra. .

    1.3 Grapes

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    Maharashtra is a leading state in production of Grapes in whole country. In regards

    to agriculture land under grapes cultivation & grapes production, Nasik & Sangli

    districts are at forefront in the state. Apart from these ,grapes are also grown in the

    districts of Ahmednagar, Pune , Satara , Solapur and Osmanabad. Now a days

    grapes re produced in Latur district of Marathwada. However ,Nasik and Sanglidistricts are ahead in the production of grapes in a scientific manner.

    Figure

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    Area under grapes in Maharashtra is 35236 ha, out of which Nasik and Sangli

    districts contribute 24174 ha and 8255 ha respectively. Maharashtra produces

    around 988722 MT of grapes annually, in which Nasik and Sangli districtscontribution is 500406 MT and 231635 MT. Total export of Grapes from from

    India is 26793.83 MT valuing 105.89 crores out of which nearly 80 % is exported

    from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless

    ,Tas-e-Ganesh , sharad seedless, Flame seedless and Sonaka.

    1.4 MARKET SCENARIO

    Nasik district is the largest producer and export of Grapes in Maharashtra. The

    main growing are Dindori , Nasik ,Niphad, Pimpalgaon Basvant and Chandwad.

    Export of grapes from nasik stands at 7613.63 MT during 2003-04. Usually very

    little quantity of export quality grapes comes to APMCs. Export grapes are Usually

    Procured at the fare gate . Traders and exports go directly to farms 20-25 days

    before harvest and they fix a procurement price based on the grade.

    1.5 PERIOD OF PRICE FLUCTUATION:

    Generally the price of grape depends on the production, harvesting period and

    demands in market of other part of India .

    Low price : Nov to Dec with the average price around Rs.7 to 9/kg

    Peak price : April-May with average price around Rs.12 to 15/kg

    In this market some variety always fetch good price . A general price for varieties

    can be given below : (Make separate colomb indicating Export and local price)

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    Variety Price Rs/kg

    Sonaka 25-30

    Tas-e-Ganesh 10-15

    Sharad seedless 25-35

    Thompson seedless 15-20Flame seedless 25-28

    Sangli:

    It is second largest grapes growing and exporting district in Maharastra.Exportquality grapes wont come to here. So exporters and traders go directly to farmers

    orchard. The important growing regions are Malegaon, Miraj, Nimni, Savlaj and

    Tasgaon. Nearly 250-300 containers of grapes will be exported this year from

    Sangli district alone. During last year (2007-08) the farm gate procurement price of

    export quality grapes fluctuated with the time like this.

    February ends 35-40 /kg

    March15-30: Rs 50 / kg

    March 30 onwards Rs 60-65/kg

    Solapur Market :

    Solapur is also very big market for grapes .Grapes arrival is from Solapur, Sangli,

    and Baramati and from regions of Kolhapur surrounding Sangli. Distribution is

    mainly to Bihar,Bengal,Orisa, and Southern Indian states. There are many Bihar

    and Bengal traders operating in this market. In this market grape price depends on

    variety of grape. The prices of some important varieties are given below. Nearly

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    80% of the production is Thompson seedless and 10-15% is Sharad and flame

    seedless. Rest is from other varieties.

    Variety Price Rs/kg

    Sonaka 25-30

    Tas-e-Ganesh 10-15

    Sharad seedless 25-35

    1.6 OBJECTIVES OF RESEARCH

    Objectives 1

    To study the quality assurance of grapes at the time of procurement at the pack

    house

    Sub objectives

    1. To find the average size of Berries during the season

    2. To find the average brix of the berries exported this season

    3. To find the average bunch weight of the different varieties of grapes.

    Objectives 2

    To find the average price paid to the farmer.

    Sub objective:

    1. To find out the price to the farmer with respect to the quality of grapes and the

    time of procurement.

    2. To study whether the price is determinant of demand of the grapes or the

    quality of the grapes.

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    CHAPTER-II

    EXPORT OF GRAPES

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    2.1 EXPORT OF GRAPES

    Major export is to Middle East, UK, Holland, and Germany.

    Varieties in Demand:

    Name of the Varity Description Berry size Harvesting period

    THOMPSONSEEDLESS

    Round berriesgreen color, Seedless variety.

    16 mm to 18 mm January to April

    SONAKA Elongatedberries,green lessvariety.

    16 mm to 18 mm January to April

    SHARADSEEDLESS

    Roundberries,Blackishred colour,seedlessvariety.

    16 mm to 18 mm January to April

    FLAMESEEDLESS

    Roundberries,Blackish

    red colour,seedlessvariety.

    16 mm to 18 mm January to April

    Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and

    Middle East.*Thompson seedless constitutes nearly 95% of grapes export to

    Eupore and UK.but for dubai and Middle East market ,along with Thompson

    seedless ,Sharad seedless ,Sonaka,2-A clone and Tas-e Ganesh are preferred.

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    2.2EXPORT SPECIFICATION (HOLLAND)

    Indian white Thomson seedless GRAPES - SPECIFICATIONSHealthy intact Fresh White Seedless Grapes

    A Variety Thompson

    B General for the whole lotUniform in terms of class, origin,size,colour anddegree in ripeness.

    Sr.

    no.Characteristic Description

    1 Temperature

    Precooling, storage and transport about 0 - 1

    degree Celsius

    2Berry Colour, twoseparations

    Opaque milky pale green colour or amber. Not darkgreen or glassy.

    .

    3Berries - GeneralAppearance with 0 %tolerance.

    Berries must be fully developed, ripe, turgid( firm ); not bladdery, wilted, over mature; noshrivelled, deformed or poorly pollinated berries.Colour should be even through the bunch and acrossthe box. No wrinkling of skin or sunken area around

    pedicle, watercore.No abnormal exterior moisture.

    Free from decay-decomposition of fungusdevelopment.

    Free from decay-internal insect infestation orinternal damage.

    4Berries-GeneralAppearance with 3%tolerance

    Free from slip skin, boytritis, injuries, shrivelling /witting, cold damage, unspecified internal qualitydefects, skin damage, wind rub marks, unspecifiedappearance defects.

    5Berries-GeneralAppearance with 5 %tolerance

    Free from split berries, mould on stems, sulphurburn, visible residues, loose berries.

    6Berries-GeneralAppearance with 8 %tolerance

    Free from sunburn.

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    7Berries-GeneralAppearance with 10 %tolerance

    Free from dry stems and dirt.

    Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a

    representative quantity taken on an random basis out of the entire deliveryAll Quality defects in the above mentioned, may not exceed 5 % provided that the

    individual deviations are within their stipulated limits

    8 Skin Blemish

    Evenly coloured skin should be free from pestdamage or physical damage. No bruising, hailmarks, splits, cracks, open cuts or rots, sunburn,sulphur bleaching

    9 Vine ConditionStems and pedicles fresh and green, not dry andbrown.

    10 Shape/Dimensions

    Bunch - shape typical of variety; not straggly or

    over tight;- round or slightly oval, not excessivelyelongated.

    Organoleptic

    11 FlavourSweet and refreshing flavour balanced by a hint ofacidity.

    12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.

    13 Aroma None, free from any foreign odour

    Physical

    14 Sugar Content minimum - 16 degree Brix. Max 20 Brix15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1

    16Berry Size, printed on theLabel

    Minimum 15 mm, as Regular, Large 16- 18 mm,Extra Large 18-20 mm. XXL.20 mm and up. Targetaverage16 - 18 mm.

    17 Dropped BerriesMinimal dropped berries (shatter) in packaging:tolerance up to 4 % by weight, Target zero.

    18 Pouch weight

    9 Pouches of min 510 gms. ( by packing ) per 4.5kg carton. Preference of 1 bunch

    per bag, with a tolerance for 2 bunches ofeven weight in 1 bag, No single bunch to weigh lessthan 200gms.

    19 Punnet weight 10 punnets of min 520 gms ( by packing) per 5 kgcarton. Max three bunches perpunnet with a minimum weight allowed to about50gms for third bunch for adjustment of weight

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    purposes.

    20 Insects, SpidersNo insects, spiders or mites to be present in theproduct or packaging.

    21 AdditionalInformation

    All produce supplied to this specification musthave been grown in

    compliance with the Apeda NRC document and

    relevant GlobalGap

    protocol.

    22 Pesticide residues As per European MRL's limits of 1-9-2008.

    The APEDA authorised Laboratory are ISO 17.025certified pesticide

    residue field tests report codes are traceable via the

    packing list.

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    EXPORT SPECIFICATION OF DIFFERENT COUNTRY

    Variety Middle East Holland /Germany U.K

    THOMPSONSEEDLESS

    Berry Size: 15mm Colour white/amber. TSS 17-18 brix

    Berry Size:16mm Colourwhite /amber.TSS >18 brix

    Berry Size : 18mm ColourMilky white/amber. TSS >18brix. Novariation in size

    SHARADSEEDLESS

    Berry Size : 15mm Colour

    Black

    Berry Size : 16mm Colour

    Black

    Berry Size : 18mm Colour

    FLAMESEEDLESS

    Berry Size : 16mm Colour Pink

    Berry Size : 18mm Colour Pink

    Packing 4.5 kg / 9 kgpouch packingand 5 kg punnet

    packing

    4.5 kg / 9 kgpouch packingand 5 kg punnet

    packing

    Storage Temp . 0-1 C 0-1 C 0-1 C

    Days required toreach DestinationFrom JNPT

    7-8 Days 21 days 21 days

    If necessary sample should be forwarded to the importer and it should be

    representative.

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    CHAPTER-III

    MAJOR QUALITY PARAMETERS

    FOR EXPORT OF THE BERRIES AT

    POST HARVESTING

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    Three major quality parameters for export of the berries at

    post harvesting are-

    1. Size of the grapes

    2. Bricks in the produce

    3. Contamination due to pests.

    Thompson seedless contributed nearly 90%of the total exported the European

    Union and UK while Shared Seedless was the major variety that was exported

    to Middle East.

    Ll. Quality of Thompson variety of seed with respect to the period of the

    procurement is shown in the graphs below.

    Quality of grapes at the time of reception.( Thompson

    Seedless )

    Week Price paid

    to farmer

    Average

    weight of

    one bunch

    Average

    Size

    Average

    Brix

    Diseased

    grapes ( qt

    in Kg )

    4 38.54 290.45 16.5 17.98 Less than 1 %5 39.28 270.45 16.58 18.1 Less than 1 %

    6 39.12 286.46 15.43 18.4 Less than 1 %

    7 38.79 257 15.38 17.93 Less than 1 %

    8 41.40 294.74 15.67 18.14 Less than 1 %

    9 39.20 298.9 15.9 18 Less than 1 %

    10 39.67 311.5 15.6 18.2 Less than 1 %

    11 38.47 318 15.3 18 Less than 1 %

    12 41.83 325.1 15.8 17.8 Less than 1 %

    13 42.34 323.4 17 18 Less than 1 %14 41.90 288.6 17 17.6 Less than 1 %

    Total 40.05 296.78 16.01 18.01 Less than 1

    %

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    3.1 WEIGHT OF GRAPES

    From the table it can be established that Thompson varieties of grapes are

    generally available after the January end of from the period of the February. In the

    start of the season the average bunch weight is less as the grapes do not get muchsize and are harvested. Each berry of his variety weight around 4-6 gms and each

    bunch has nearly 70-80 berries.

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    3.2 AVERAGE SIZE OF THE GRAPES

    From the table 2.2 it can be established that the size of the produce is less in the

    start of the season as compared to the mid and the end of the season. From the

    below graph it is easily seen that the size of the fruit is height at end of the seasonwhich implies a better quality according to UK and EU Standards

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    3.3 AVERAGE BRIX OF THE GRAPES

    From the table 2.3 it can be clearly seen that there is not much variation in the brix

    of the fruit during the whole season. Brix of the fruit also depend on the irrigation

    of the field .if there is rain or the just irrigated then the average brix in the grapes

    will increase and make it unsuitable for the grape export. More brix means more

    sugar content in the grapes which increase its chance contamination during

    transportation of grapes

    .

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    3.4 PRICE PAID TO THE FARMER DURING THE

    SEASON.

    Observation: From the table 2.4 it can be seen that the farmer are getting the lower

    price at the start of the season and price go high as the season comes to end. The

    price of the grapes depends mostly on the size of the grapes the demand and supply

    of grapes in the market.

    Inference: it can be inferred from the table 2.4 that the size of produce is giving

    better returns to the farmer at the end of season. It can also be inferred that in the

    late season due to the constant demand and decreased supply from the domestic

    market the price of grapes are going on the higher side.

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    Thus it can be seen that the quality norms are very stringht for the export to the

    countries of European Union and UK. The processing cost for the exports to these

    countries is very high and the risk of rejection is also very high so it is very risky

    business to exports to these countries. It is very high best on the part of field fresh

    that there procurement procedure is very good that the diseased material reaching

    the pack house is always less than 1% which symbolizes good procurement

    practices and good logistics operation at Field Fresh Foods.

    Recommendations:

    Company can also plan to supply the fruits to the local markets are also fetching

    good prices in the metropolitan cities .Also the transportation cost and quality

    requirements are less so the margins on the grapes will also increase and company

    will also marks its local presence.

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    Chapter IV

    CHAIN OF EVENTS IN GRAPES EXPORT

    CHAIN OF EVENTS IN GRAPES EXPORT

    The varity of grapes that is exported from the Nasik region mostly this time

    is Sharad Seedless and Thompson Seedless .Out of the to varieties Sharad is the

    black variety and Thompson Seedless is green variety of table grapes .Sharad takes

    100-110 days to harvest after the flowering stage so the yield starts from the month

    of late December.It is mostly exportd to ME as the quality assurance parametees

    are less binding on the Middle East than to the European Union.

    4.1. Residue Analysis:

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    Sampling of grapes for residue analysis is usually done 10-20 days before

    harvest .5 kg sample is taken randomly from each farm, in which 3 kg is crushed

    for testing immediately and 2 kg sample is kept in cold storage foe 45 days till the

    consignment reach destination without any hindrance. There are eight authorized

    institutions throughout India that can conduct residue analysis test .The list of theseauthorized residue testing institutions are given in the annexure. For this test,they

    charge Rs.300/ sample for one pesticide and Rs 7500/ sample for all 87 chemicals.

    APEDA will give 50% subisidy foe reside analysis. This year National

    Horticulture Mission ( NHM) has given 100% subsidy for residue analysis test of

    all horticultural produce. Residue analysis report will be given to farmers within 6-

    8 days. The residue analysis test is done for 92 chemical.

    4.2. Harvesting:

    Harvesting is done in morning hours based on the specifications of importer.

    Weighing is done immediately. The quanity harvested is entered in farmers

    registry.

    4.3 Knitting and Sorting/ Grading: Afterwards knitting of non uniform and

    water berries is done followed by sorting and weighing as per importers

    requirement.Usally Export specification will be as follows.

    4.4 Weighing and Packing

    Grapes are usually packed in three types of Cardboard boxes for export

    Each box will have to be packed with grape guard, tear off liner and bubble

    sheets for Europe. For Middle East, each box has to be packed with papercuttings ,along with grape guard tape to hold two boxes.

    a) 5 kg Punnet packing : In this 500 gm transparent punnets are used.

    Totally 9-10 punnets are needed in each 5 kg Card board box. The

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    punnets are imported from South Africa. And Itly From last one year UK

    and European imports are demanding grapes in punnet packing only.

    b) 4.5 kg Pouch packing : 9 plastic pouches of approximately 500 gm are

    kept inside 4.5 kg card board boxes. The demand for this type ofpackaging has decreased considerably with arrival of punnets.The cost of

    pouch will be around 50 paise each.

    c) 9 kg Pouch packing : 17-18 plastic zip pouches of appoximaely 500 gm

    are kept inside 9 kg card boxes. The demand for this type of packaging

    has decreased considerably with arrival of punnets.

    Cost of packing for UK and EU

    Cost centre of

    packing

    5 kg Box 40 ft container

    (14.5 MT)

    Cost box @Rs.5.5 /kg

    27.5 80000

    Punnet @Rs 5/punnet

    50 26100

    Grape [email protected]/kg

    8.3 24070

    Bubble sheet @16paise/kg

    0.8 2320

    Tear off Liner @39 /kg

    1.95 5655

    Total 88.75 138145

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    4.5 Pre cooling and Cold Storage : Pre cooling is done at 0-9 C for 6-

    8hours.Usually cold stored for 5-8 days depending on export suitability. For

    storing the produce for 6-8 days , Rs 5 kg is charged.

    4.6 Palletization: Wooden pellets are used to keep card boxes with in the

    containers. Grapes are exported in 40 ft container. Each container can hold 20

    pallets and carries 14.5 MT of grapes.

    Package One pellet 20 pellats/ container

    9 kg Card board box 80 boxes 1600 boxes

    5 kg Card board box 120 boxes 2400 boxes4.5 kg Card board box 3200 boxes 3200 boxes

    4.7 Before palletization,

    a) AGMARKcertification is compulsory, which is issued by Directorate of

    Marketing and Inspection officer of concerned area. AGMARK

    certification costs around 0.2 % of the FOB value. Usually this charge

    comes to around Rs.3000/ container.

    b) Fumigation certificate: As wooden pallets are used to keep bpxes in

    container .fumigation certificate is necessary for grape export .This will

    be issued by Private certified Pest control agency or pellet supplier

    fumigation charge is Rs 20-25 / pallet. So for a 40 ft container containing

    20 pallets, this charge may end up at Rs 400-500.

    c) Phyto Sanitary certificate :( PSC) It can be availed from directorate of

    plant protection, Quarantine and Storage, Ministry Of Agriculture.

    Usually in Maharashtra District Superintending Agricultural Officer

    (SAO ) will look after procedures, For issuing PSC usually 0.2% of the

    FOB value is charged.

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    Following information is collected from Exporter for issue of PSC for

    Grapes:

    1. Application

    2. Copy of Import Permit

    3. Letter of credit/ agreement

    4. Performa invoice

    5. Copy of Import Export code

    6. The white and green copy of residue test report

    7. Container loading sheet/Packing list.

    8. Copy of declaration by farmer

    9. Farm inspection report

    10.Exporters decalaration.

    11.Pack house recognition certificate issued by APEADA.

    12.Self- certified copy of the certificate of agmark Grading (CAG) ISSUED BY

    the concerned Office of Marketing and Inspection.

    13.A Challan of prescribed fess paid for inspection.

    d) Stuffing Permission: It is issued BY Central Excise and Customs

    department. Stuffing permission is the permit to export a good to a

    particular place / nation from central excise. It is life time permission.

    Quality parameters such size, packing, temperature requirements should

    be according to the importers specifications. It is better to get

    requirement from the importer in writing in Purchase order. Pack the

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    material strictly as per the sample provided by the importers

    requirement.

    4.8 Loading of container: Refer container usually comes from JNPT to the

    farm gate. While loading the grape to container, Central excise officer will

    inspect the commodity as per the purchase order and seal the container. Once

    the container is sealed, it can not be opened by anybody till it reach its

    destination.

    Usually pack house order charge Rs 7/ Kg for labor, harvesting, transport to

    cold storage sorting, grading, packing loading to container. This Rs 7/ kg

    includes commission agents/packers margin of Rs.2-2.5/kg .It does not

    include the package material cost, cold storage costs and diesel and

    electricity charges. Totally the procurement cost comes roughly to around

    Rs 12/ Kg including cold storage charges.

    Transportation Charge to carry a 40 ft refer container to

    JNPT, Mumbai.

    Sr . No From Transportation cost

    1 Nasik Rs 20000/ container

    2 Pune Rs 18000/ container 3 Sangli/ Tasgaon Rs 25000 / container

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    4.9 Procedure of Shipment :

    Services of customs House Agents ( CHAs) to be reserved to carry out

    necessary logistic and paperwork required for export. Job like space for

    exports, order for the container, custom clearance of origin etc .is carried outby CHA. An efficient and competent CHA should be appointed. Following

    is the list of documents to be provided to CHA.

    - Letter of Credit (if available )

    - Invoice

    - Certificate of origin.

    - Phyto sanitary certificate

    - Packing List ( if items are more )

    - Customs / Excise Formalities and charges.

    For agro exports, excise duty is not applicable. Customs Duty @ 1% with

    respect to the cost of the invoice is charged while processing the documents.

    - Terminal Handling charges for 40 ft container is Rs.15000

    Sea freight From JNPT to different foreign Ports:

    - To UK and EU: Rs.137690

    - To Middle East: Rs.68841

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    4.10 Post Landing Cost: Post landing cost includes unloading, cold storage,

    transportation, import duty and importers commission for the year 2008-09.

    Country Rs/kg

    UK 28.22

    European Union 26.20

    Dubai 12.06

    Importers commission

    - EU -8 %

    - Middle East -5%

    Residue Analysis test in the importing country costs around 25000/ sample

    This test is done only in UK and European country. If rejected the labour

    charge and dumping costs should be paid by the exporter.

    Mode of Payment:

    Normally in the trade of agro exports (expect onion, rice and other cereals

    mango pulp) importer never provides Letter of credit ( L/C ) Such export is

    done on consignment basis ( payment as per actual sales ) Exports get thepayment after deducting port charge, transportation and commission etc .of

    the importing country .In certain country export is undertaken on the fixed

    rates. Market Credit of the importer should be checked before entering into

    the trade. Importers credit can be checked by international credit

    organizations like Dun and Bradstreet. Export Credit Guarantee Corporation

    of India( E C G C) also undertakes such type of credit certification work .

    Sales proceed gets deposited in the bank in foreign currency. Export

    documents including Export Promotion ( E P ) copy should be retained by

    exporter.

    The profit involved in export of Grapes

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    Remove this part it doesnt match..The grapes are generally exported 40 ft. container which can hold 20 pallets.

    The total capacity of 40 ft. container is 14500 of Grapes.

    The profit involved In Export of Grapes.

    The grapes are generally exported in 40 ft. container which can hold 20 pallets.

    The total capacity of 40 ft container is 14500 kg of Grapes.

    Profit involved in Exporting 14.5 MT Grapes.( 40 ft container)

    Particulars UK EU Dubai

    Cost of grapes @35/ kg to Europe &

    Rs 28/kg for Dubai

    551000 551000 406000

    Pre cooling and cold storage

    @Rs.5/kg

    72500 72500 72500

    Handling and Packing cost @ Rs.7/kg 101500 101500 101500

    Cost of packing material 138145 138145 138145

    Transportation charge to JNPT 15000 15000 15000

    Sea freight for 21days to Europe & 7

    Days to Dubai.

    137690 137690 68841

    Terminal handling charge 15000 15000 15000

    Customs charge @ @1 of Invoice. 15000 15000 10000

    Residue analysis test ( 50 % subsidy

    from APEDA)

    3700 3700 ---------

    PSC 250 250 250

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    Fumigation 400 400 400

    AGMARK @ 0.2 % OF Invoice. 3000 3000 ----------

    Post landing testing of grapes @

    25000/ Sample

    25000 25000 ------------

    Post landing charges 409287 380000 175000

    Total cost 1487472 1458185 970861

    Price realization at the destination

    Market

    1754500 1667500 1087500

    Expected profit/ container. 267028 209315 98639

    CHAPTER V

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    CONCLUSION

    CONCLUSION

    The advent of new varieties having high consumer preference and technical

    advancement in cultivation has made this crop more popular.

    Owing to the nutritional and medicinal values of the fruits, there is

    preference among the consumers in the domestic and international markets.

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    Thomson seedless and sharad seedless variety is best suited for cultivation in

    the tropical areas. This variety is one of the best varieties suitable for export

    purpose and it is gaining popularity among consumers.

    Most of the Grapess produced is consumed locally and about 1 per cent isexported. The exports have not been substantial since the international

    standards were not known.

    Of late, Indian grapes have penetrated into the European Union since

    suitable varieties conforming to international standards are being produced.

    Karnataka has exported about 2000 MT to other countries during the last

    few years. There is potential for export to the United State of America also.

    Diseases such as Powdary mildew, Downy Mildew, etc., have created

    problems in obtaining economic yields.

    Proper varietal selection, crop and post harvest management, infrastructure

    such as cold chain, facilities for marketing etc, will augment the cultivation

    of quality grapes and will help in increasing the exports to a tune of about

    20,000 30,000 MT tons.

    In this background, India can definitely make a dent in grapes trade in the

    world market.

    Remarks

    Add,

    Compititors in the market and there purchase / pricing strategy,

    Entry level and packout level quality parameters./documents filled.

    Flow chart of total export process.

    Just concentrate on Thompson seedless as it accounts for 90 % of

    Export to Europe.

    Packhouse requirements for global gap Audit to get quality produce.

    grape net and Global Gap System./Process.

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    Quality of grapes starts from field hence start process from

    identification of fieldSOP.