EVALUATION STUDY OF POST HARVEST CENTRES

(PRE-COOLING ETC.)
FOR

EXPORT OF GRAPES
(MAHARASHTRA STATE)

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT RUNE-INDIA MARCH - 2001

EVALUATION STUDY SERIES PUNE RO NO. 8

POST HARVEST CENTRES

(PRE-COOLING ETC.) FOR

EXPORT OF GRAPES
(MAHARASHTRA STATE)

S If .^

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT REGIONAL OFFICE PUNE
March 2001

Published by National Bank for Agriculture and Rural Development, 54 Wellesley Road, Post Box No. 5, Shivaji Nagar, Pune - 411 005. Printed at Ketan Printers, Pune - 411 005. Telephone No.: 91 (020) 553 5824 E-mail: ketanprinters2002@yahoo.com

FOREWORD
The present evaluation study is the eighth in the series of evaluation study reports published by NABARD Pune, Regional Office. As a part of NABARDs efforts in getting a continuous feed back on the performance of various investments relating to agriculture and allied sectors, an evaluation study was conducted on post harvest centres (pre cooling etc.) for export of grapes in Maharashtra State.

NABARD, Pune Regional Office has been actively involved in making available credit for post harvest management of agri produce and had sanctioned 117 Hi-Tech schemes for agro processing including EOUs. Among them, 25 schemes involving 56 units were for setting up of pre cooling and cold storage units for extending shelf life of fruits with a refinance of Rs.1076 lakh. A total of 26 units were taken up for detailed study.

The present study revealed that thejjnits in Nasik district were exporting products by themselves where as the units in Sangli district were rented out. The capacity utiiiation of units was about 50% in Nasik district and less than 25% in Sangli district, in view of the low capacity utilisation, the study has brought out that pre - cooling unit of 2 MT/2.5 MT capacity and cold storage of 25/30 MT capacity alone need to be encouraged as against the higher capacity units financed by the banks.

It was observed that good support was made available for setting up of units by both GOI and GOM. However, the study points out that there is a need for better coordination among various organisations like NHB, APEDA, NCDC, MoFPI, etc., for promoting pre cooling / cold storage units.

All the schemes were completed in time and there was no time and cost over run for any of these units. There were no major problems in availability of material required for export of grapes or for operation and maintenance of these units.

The repayment performance of units engaged in direct exports was very good whereas in units rented out it was poor suggesting the need for a longer repayment period.

I hope, the findings of the study will be useful to banks and other implementing agencies.

NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT, PUNE R. O.

R. KRISHNAMURTHY Chief General Manager

CREDIT LIST

Overall Direction Department of Economic Analysis and Research NABARD HO, MUMBAI

General Guidance and Supervision Sri. B.Satyanarayana Chief General Manager, NABARD, Pune RO

Analysis of Data and Drafting of Report Sri. B.V.S.Prasad, Assistant General Manager

Field Investigation Sri. B.V.S.Prasad, AGM Dr.K.S.Mahesh, Asst. Mgr.

Finalisation of Report Shri B.R. Shirsat, DGM NABARD, Pune RO

III

ACKNOWLEDGEMENTS
Assistance received from the following insttfettons in the conduct of the study is gratefully acknowledged 1. 2. 3 4. 5. 6. 7 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. Nasik District Cooperative Central Bank Ltd, Nasik Sangli District Cooperative Central Bank Ltd, Sangli. Bank of Maharashtra, Nasik Regional Office, Nasik. Bank of India, Nasik Regional Office, Nasik. Bank of Baroda, Nasik Regional Office, Nasik. Mahagrapes, Pune. Maharashtra Grape Growers Society, Pune. VEFCO, Nasik. Hutatma GGCS, Sangli. Sri Ram GGCS, Nasik. NCDC Unit, Sangli. Vasanthadada Grape Growers Coop. Soc. Ltd. Anjani,. ChamanGrapeGrowersCoop. Soc. Ltd. Nimni, Yelavi Grape Growers Coop Soc Ltd, Kundal,. Kundal Grape Growers Coop. Soc. Ltd, Kundal, Bhilwadi Grape Growers Coop. Soct. Ltd., Bhilwadi, Shiva Sakhi Grape Growers Coop. Soc. Ltd, Savalaj, Shri Veerabhadra Grape Growers Coop. Soct. Ltd., Gardi, Shri Nath Grape Growers Coop. Soc. Ltd, Gardi, Mahalaxmi Grape Growers Coop. Soc. Ltd, Mahankal, Khanderaya Grape Growers Coop. Soc. Ltd, Waiphale, Sampathrao Deshmukh Phalbhajya Vikri va Shitagriha Coop. Soc. Ltd, Kadepur, Tasty Grapes. Susheel Grapes. Leading Agro. Mouli International. Holly Grapes. Panchwati. Mass Exports. Akkar Exports. Krushirath Agro-Industry. SACO Fruits. Malode Agro Exports. BorasteAgro. Traimbakraj. Kadava Farms. Anand Grape Growers Coop. Soc. Ltd.

IV

Particulars Foreword Credit List Acknowledgments Abbreviations Basic Data Sheet Summary and Conclusions THE MAIN REPORT Chapter No. I II III IV V VI VII Introduction Support Available for Pre cooling and Minimum Quality Standards for Export of Table Grapes Methodology of Study Description of the Study Area Cold Storage Projects and their Implementation Economics of Investment

Paae No. i iii iv vi vii ix

1 6

12 17 22
24 38 46 50

VIII Repayment Performance IX Problems and Prospects of Pre Cooling

Annexure I A (FRR for units Exporting) Annexure I B (FRR for units Rented Out) Annexure 7.1 (Cost of Export upto Mumbai) Annuxure II - List of NABARD Publications

53 54 55 56

ABBREVIATIONS
APEDA BOB BOI BOM Coop CS DCCB Agricultural Produce Export Development Agency Bankof Baroda Bank of India Bank of Maharashtra Cooperative Cold storage District Central Cooperative Bank District Industries Centre Export Oriented Units Government of India Government of Maharashtra Government Hectare High Tension International Air Ticketing Association Low Tension Limited Ministry of Food Processing Industries Maharashtra State Electricity Board Metric Ton National Bank for Agriculture and Rural Development National Cooperative Development Corporation North East Non Governmental Organisation National Horticultural Board Operation and Maintenance Pre cooling Prime Lending Rate Research and Development Rupees State Bank of India State Co-op Agriculture & Rural Development Bank United Kingdom Vegetable and Fruit Cooperative Western Maharashtra Development Corporation

Die
EOU GOI GOM Govt. ha HT lATA LT Ltd MoFPl MSEB MT NABARD NCDC NE NGO NHB O&M PC PLR R&D Rs. SBI SCARDB UK VEFCO WMDC

VI

BASIC DATA SHEET

1. Evaluation Study of Post Harvest Centres (Pre-cooling etc.) for Export of Grapes in Maharashtra State

2.

Coverage of Study i) ii) iii) Activity Districts Banks Pre cooling and Cold Storage Units Nasiic and Sangli Districts a. Sangli DCCB b.NasikDCCB c. Bank of Maharashtra, Nasik d. Bank of India, Nasik e. Bank of Baroda, Nasik 26 UnitsSDCCB NDCCB BOB BOM BOI

iv)

Sample Units

-11 - 1 - 2 - 7 - 5

units unit units units units

3. 4. 5. 6. 7.

Reference Year of Study- Calendar year 1999 Field Study APRIL 2000 Rs.1462.886 lakh Rs.1076.849 lakh a. b. Pre Cooling Cold Storage 14 12 04 M l 30 M l

Refinance SanctionedRefinance Disbursed Average Capacity of

8. 9.

No. of Units exporting in own name No. of Units rented out

10. Average No. of containers exported by units exporting units rented out 8 7

VII

11. Percentage of Recovery - NasikDist. - Sangli Dist. 12. Price realised by exporters per kg 13. Financial Rate of Return a. Units Exporting b. Units Rented out Above 50% ( - 0.31 %) 100% 17% Rs.60/-

VIII

SUMMARY AND CONCLUSIONS

1. India is one of the world's largest producer of fruits and vegetables. However, 30 to 50 per cent of the produce disappears in transit due to Poor post harvest facilities. There is an urgent need to stop these losses by improving the post harvest management. There is also a need to process them as the availability of fruits is limited to certain months of the year. Among the states, Maharashtra tops the list in the production of fruits. 2. There are many methods / technologies available for processing. Among them, pre cooling / cold storage is most efficient, suitable and cost effective for storage of fruits and vegetables. 3. NABARD has been extending refinance for agro processing and has sanctioned 117 Hi-Tech schemes for agro processing including EOUs. Of these, 25 schemes involving 56 units were for setting up of pre cooling and cold storage units with a refinance assistance of Rs.1076 lakh. 4. Government of India, through APEDA, NHB, MoFPI has extended good incentives for setting up of pre cooling and cold storage units for encouraging export of agricultural produce. 5. The present study covers 26 units (11 from Sangli and 15 from Nasik district) financed by Nasik DCCB (1), Bank of India, Nasik (5), Bank of Maharashtra, Nasik (7), Bank of Baroda, Nasik (2) and Sangli DCCB (11). In addition, 4 units not refinanced by NABARD, two each in Sangli and Nasik districts were visited for general understanding of pre cooling and cold storage units. However, the conclusions were drawn based on NABARD refinanced units, only.

IX

6.

Reference year of the study was calender year 1999. The export of grapes starts from middle of February and ends by April and export proceeds are realised after 60-90 days from the day of shipping.

7.

Both Nasik and Sangli fall in Western Maharashtra region. About 64% and 77% of the total population consist of rural population respectively. Nasik falls under high rain fall zone while Sangli falls under moderate rainfall zone.

8.

Even though food crops dominate in both the districts, grapes occupy about 1 % of the net sown area in Nasik district and 0.7% of net sown area in Sangli district.

9.

Both the districts have good net work of rail and road and are connected to major cities in India. Further, in both the districts Mahagrapes and Grape Growers Association have their offices and are extending all the support needed for the development and export of grapes.

10. Both the districts not only lead in the production of grapes, but also have large number of pre cooling and cold storage units. 11. The total cost of the pre cooling and cold storage units ranged from Rs.19.15 lakh to Rs.74.25 lakh with an average cost of Rs. 45.10 lakh. The project cost of units in Sangli district is on higher side. This was mainly due to the installation of higher capaicty of pre cooling and cold storage units. Secondly, the machinery installed was also imported. 12. The average installed capacity is 6 MT/6 Hr. in pre cooling in Sangli district while the same is less than 3 MT /6 Hrs in Nasik district. 13. Of the total expenditure, 60 per cent had been accounted for pre cooling and cold storage machinery including installation, electrification and generator set. 30 per cent was for civil construction. The rest was for acquision of land, payment of electricity deposit, pre operative expenses, etc.

14. There was no time or cost over run. All the units were completed within 10-12 months. Normally, the supplier himself got the machinery installed. No major problem in operation was reported by any unit. 15. Units set up in private sector had, on an average contributed more margin (26.81 %) than that of units set up in cooperative sector (6.13%). The contribution ranged from 3.4% in Vasanth Dada Patil GGCS financed by Sangli DCCB to 48.4% in Susheel Grapes financed by Bank of Baroda, Nasik. 16. Subsidy for the pre cooling and cold storage unit was made available by various organisation like WMDC, DIC, NCDC, NHB, MOFPI, APEDA, GOM, etc. Among 26 units, subsidy was sanctioned for 16 units but received subsidy in respect of 12 units. Six units got subsidy from more than one source. The highest subsidy was released to Sampath Rao Deshmukh Phal Bhajya Vikri va Shitaguruha Cooperative Society Limited which was also the largest pre cooling cold storage unKs refinanced by NABARD. 17. All the units under cooperative sector were sanctioned and disbursed subsidy except one unit (Veerabhadra CGCS, Sangli). 18. Some of the unrts financed by Sangli DCCB were sanctioned interim loan and the same was adjusted on release of subsidy. 19. National Horticultural Board as a part of package, extended Rs.9.63 lakh soft loan at 4% interest rate repayable in five instalments with one year grace period. 20. The interest rates varied from 15% to 18.5% to different units. 21. The banks had allowed 5 to 7 years as repayment period with 1 to 2 years grace period. 22. No delay was noticed in disbursement. The loans were generally

XI

disbursed in two instalments; oneforcivil works and otherfor installation of plant and machinery. 23. All the units were completed and commissioned satisfactorily and there was no case of infractuous investments. 24. The units financed by NCDC had a longer repayment period of 12-14 years with 1 -2 years grace period. NCDC and GOM had also contributed 20% and 25% of the project cost as equity capital. The rate of interest varied between 16% and 17%. 25. Banks in Nasik had extended working capital for one working cycle. The same was not made available to units operating in Sangli as all the units were rented out. 26. There were no problems in harvesting of grapes or availability of grapes. Further, all the material required for export including containers were available, locally. Commission agents from foreign countries also made their presence in these areas and entered into agreements for import of grapes. 27. FRR has been worked out categorising the units separately for exporting and rented out. FRR for the former is above 50 per cent whereas negative for the later. 28. All the units in Sangli district are rented out their units, while the units in Nasik are exporting iri their name. However, none of the units are operating at optimum capacity level. The level of operation is 50% in Nasik district while the same is below 25 % in Sangli district. 29. As the units were rented out on quantity (per kg.) basis, traders never tried to optimise the capacities as his costs were not related to the optimisation of capacity utilisation. 30. All the exporting units on an average could realise the assumed gross

XII

price of UK 7.75 pounds for a 4.50 / 5.00 kg box. No sample unit was observed to have made sales in domestic market utilising pre cooling cold storage facilities. The exports to Europe were highly profitable and at the same time risky venture. 31. Of the price realised, 35% was spent on various charges including transportation charges upto JNPT, New Mumbai. The net price realised works out to about Rs.60/- per kg. The price realised was about 50% more than domestic market price of comparable quality and this is the additional income that had generated from exports. 32. The rental income realised was Rs.4/- a kilo for pre cooling and cold storage. All the expenses for packing, transport etc. were born by traders. 33. Promotors of all the units are grape growers . In the case of rented units, the promotors sold export quality grapes to traders, While exporting units purchased grapes, in addition to their own, directly from other grape growers. 34. The units set up in private sector were exporting and could generate enough surplus for repayment of loans. 35. All the units financed in Sangli were rented out. These units, could not generate sufficient income to repay loan instalments. 36. The units that were exporting directly, had exported on average 9 containers and the same for units rented out came to about 7 containers. 37. The units were working, on an average, for 75 days. There was an expenditure of about Rs. 35,000/- on maintenance of plant and machinery each year. The electricity charges came to about Rs.1.00 lakh per annum. In addition, an amount of Rs.15000/- was spent on dieselfor generator.

XIII

38. The average expenditure annually other miscellaneous utilities were about Rs.15000/annum on items like gas, sanitation, general hygiene, etc. Further, an amount of Rs.5000/- was spent on Telephone and Rs.6000/- on apparels for labour in the pack house. 39. The repayment performance of units financed by Sangli DCCB was poor with 16.8% while it was more than 100% in case of Bank of India, Nasik indicating advance payment by some of the borrowers. Overall recovery in case of Nasik district is more than 100 per cent. 40. The repayment period of 5-7 years allowed by banks was reasonable for the units directly exporting. While for rented units, there is need for longer repayment period in view of low income generation. 41. The net price realised, was UK pound 4.75 to 5.50 per a box of 4.50 / 5.00 kg. Thus the rate of grape works out to one Pound per kg . The exchange rate of per Pound was Rs.60/- a kilo. The average net price realised constituted about 65% of FOB price. Even in the case of units rented out to members got better prices than domestic market, which other wise they would not have got in absence of pre cooling and cold storage facilities. There is a need to properly educate farmers to part with some of the benefits and utilise the same towards repayment of loans instalments. 42. There were many constraints in export of grapes mainly being non availability of standard quality grapes required for export purpose. The percentage of standard quality grapes forms about 5% of the total production. Further, popularvarietiesare, of late, becoming increasingly susceptible to leaf roll virus thereby severely affecting quality of grapes. 43. The yield of export quality grapes are 25-28 ton/ha in Nasik and 45-50 ton/ha in Sangli.

XIV

44. There is inadequate infrastructure at production sites. Further, incidence of large number of diseases and heavy application of pesticide leads to pesticide residues above maximum permissible limit. This create problems for export of grapes. 45. There are wide fluctuations in international competition from Chile. 46. Inspite of all the difficulties, we have certain added advantages in production and export of grapes. Grapes can be harvested in India by virtue of double pruning at such a time when no grapes are available in the world market. There is also scope to stagger the fruit pruning in 90% of the grape cultivated area, as this area falls in the tropical region of India. Further, the time of harvesting grapes can be adjusted by adjusting the fruit pruning. But in order to adjust pruning, extension agencies have to educate farmers for which a lot of effort is needed. 47. Technology for production of export quality grapes is available in India. There is also availability of experienced man power for various activities starting from production of grapes to packaging of grapes for export and other support services needed for export of grapes. 48. Again grape producing regions are nearer to seaports and reasonably good infrastructure is available there. Besides, there are other encouraging aspects like incentives in the form of subsidy, good government support for establishing pre cooling and cold storage for export of fruits and vegetables, availability ECGC cover and packaging credit from banks. In addition, most of the grape growers are aware of the export opportunities and procedures. Further, foreign trading agents are present for taking up export of grapes on a regular basis. prices and severe

XV

ACTIONS FOR FUTURE ^ Pre cooling unit of only 2 MT/ 2.5 MT capacity and cold storage 25 / 30 MT capacity alone need to be encouraged as the capacity is adequate and reasonable for the present level of exports. Setting up higher level of Pre Cooling + Cold Storage leads to higher overheads and lower capacity utilisation. Installation of indigenous plant and machinery need to be encouraged as it is as efficient as imported. Besides, the cost of indigenous plant and machinery is also lesser than that of imported one. // units are setup for renting out, there is a need for higher repayment period and minimum export should be 17 containers to sustain the investment. There is also need for better coordination among different agencies in disbursement of subsidy and the same should be released only in the name of the financing bank wherever bank loans are involved. There is no need for making a provision for conveyor belt system in the pack house, initially. Based on the performance, the same can be sanctioned at a later date, if need be. The farmers of the rented units could also realise better prices due to the presence of the pre cooling and cold storage units in the vicinity. Inspite of reaping benefits,

XVI

the repayment is lacking only because the members have not passed on the extra benefits realised by them to the bankers. Wherever, such benefit is passed onto the bankers, the recovery is good. Hence, there is a need to properly educate farmers to part some of the benefits realised to banks towards repayment of loans. ^ The export of grapes can be augmented by streamlining the exports through strengthening market intelligence. Further, a new financing scheme should be designed to help exporters to tide over in bad times. Special care has to be taken before development of vine yards for export. There is also need for exploring new markets. To achieve all these intended objectives, there is a need for proper planning, extensive market surveys, strengthening extension education to farmers etc. This will go a long way in promoting grape exports and thereby augmenting income from pre cooling and cold storage units.

^ ^ ^

XVII

CHAPTER-I INTRODUCTION 1.01. India is predominantly agriculture based economy blessed with diverse agro-climatic conditions which are conducive to the cultivation of different crops and almost round the year. Given the arable land and varied agro-climatic conditions, India is already one of the worlds largest producer of variety of food grains, vegetables and fruits. According to CM - Mc Kinsey Report; food production is expected to treble to Rs. 2,34,000 crore by the year 2005. India has emerged as the second largest producer of fruits and vegetables in the world with an annual production of 41 million ton of fruits and 73 million ton of vegetables contributing nearly 10% and 13% respectively of the world productbn. During the next 10 years the output of horticultural produce is expected to be increased to 265.5 million ton. 1.02 The production given above will make agro-business larger than the entire Indian manufacturing sector put together. But much of this potential is likely to remain in the realm of statistics if production is not supported by proper post harvest management. Today 35-50 per cent of production disappears in transit till it reaches to the consumer. Therefore, any increase in production of the food is negated by spoilage in storage and transportation. The loss is more pronounced in the case of fruits and vegetables as these contain high level of moisture (between 75%-95%). 1.03. The immediate requirement, therefore, would be not only to stop these losses, but also value addition through processing. Agro processing, helps to reduce the losses, thereby increasing the availability of both fruits and vegetables for domestic consumption and also for export. 1.04. Fruit and vegetable processing involves transformation of raw materials through physical or chemical alternation, storage, packing and distribution. The purpose of processing is to make the raw material portable, palatable and preservable and are known as 3 Ps of processing. 1.05. The necessity for processing of fruits and vegetables arises due to the following features. 1

Contain high level of moisture (over 75%), thus prone to micro biological spoilage and natural enzymatic degradation. Availability is restricted to limited months of the year. Creates employment opportunities in rurai/semi-urban areas.

1.06. There are many technologies available for processing. Some of them currently in vogue are: L Classical methods of preservation: This is an age old practice followed in India. It is done by addition of salt or sugar to create high osmotic pressure in the cells of fruits and vegetables and thereby prevent micro biological spoilage. Pickles and jams are prepared by using this process. Preservation by low temperature: The well established principleof processing is that low temperature nearthe freezing point of water is effective in reducing the rate of respiration and minimize spoilage. The storage has to maintain required temperature and relative humidity for effective storage life. Before placing the commodity in the cold storage, field heat is to be removed for effective storage life. It generally consists of 3 methods.: Cold storage The temperature of the commodity can be brought down by taking out the heat by means of mechanical refrigeration without any chilling injury. Generally, ammonia is used as refrigerant. Refrigerated gas storage The process involves storage under low oxygen, high carbondioxide or both. c} Preservation by freezing This process involves passing of commodities through a zone of ultra low temperature (-15 C to -17 C). By freezing, products remain/retain their original flavour, shape, texture and nutrients. But this involves high cost. This freezing can be done by Air blast freezing Plate freezing Individual quick freezing Cryogenic freezing

iL

a)

b}

jii.

Chemical preservation Chemicals like Sodium Potassium metasulphate/ inorganic and organic (Benzoic Acid) can be used for retarding of inhibiting

iv.

micro organisms for enhanced shelf life. Canning Canning is a process of sealing of foodstuff in containers and processing them by heat. Drying / Dehydration By using sunlight or artificially produced heat. Raisins are made of this process. Radiation preservation Use of X-rays for preservation of fruits, vegetables. It is also known as cold sterilisation. But the process of preservation by irradiation may lead to long-term problems and loss of nutrients to certain extent.

y,

vL

1.07. It may be seen from the above that, of the above methods, preservation by low temperature is more suitable for extending the shelf life of fruits and vegetables, as this process retains most of the original qualities and the process is easy to operate and thereby is popular than all other methods. 1.08. In India, Maharashtra ranks on top in the production of fruits which are to the tune of 53.37 lakhs metric ton. However, as in the case of rest of India, less than 1 % of this is utilised for agro processing. 1.09. Agro-processing involves substantial cost and as such involvement of financial agencies is necessary to supplement the resources of entrepreneurs. This activity could reduce losses and help in export of fruits and vegetables. NABARD, recognising the need for extending finance to this sector, actively involved in extending refinance facilities. So far National Bank, Pune Regional Office had sanctioned 117 Hitech schemes both for production and processing of agriculture and allied projects including Export Oriented Units (EOUs). Of these 117 projects, 25 units were sanctioned for pre-cooling and cold storage units and 12 were 100% EOUs (8 for production and 4 for processing

^ of agriculture and allied products). The sector-wise details of ail Hitech & EOU schemes sanctioned by NABARD, Pune Regional Office are given intablel.1: TABLE-1.1 Hi-tech Schemes sanctioned by NABARD. PUNE RO SI. No. 1 2 3 4 5 6 7 8 9 10 Activity Poultry Agro-processing Pre-cooling / cold storage Floriculture Vermiculture Mushroom cultivation Straw berry Composite horticulture Tissue culture Seed processing Total 1.10. No. of schemes Of which, ECUS sanctioned 18 4 4 25 19 3 9 6 9 11 13 117 7 1 12

It could be seen from the above, that highest number of schemes sanctioned by NABARD were for setting up of pre cooling and cold storage units. The Government of India had also given top priority to set up pre cooling and cold storage units. Though NABARD had been refinancing these units in a liberal way, no study was conducted on the functioning of these units so far. Therefore, it was decided to conduct an ex-post evaluation study on pre-cooling and cold storage units in Maharashtra State. Since beginning, India was primarily a source of raw material supplier to the Industrial nations in Europe. But the export of perishables has gained momentum only after opening up of the economy in early nineties. The export of Indian perishable agro-products include grapes, mangoes, flowers, live-plants, etc. The share of Indian agricultural and allied products in dollar terms is about 17% of the

1.11.

total Indian exports. But the share of grapes is very negligible as most of the fruit season lasts for 30-40 days only. The details of exports from India are given in table 1.2. Table 1.2 Indian Exports commodity-wise (in million US dollars) 1997-98 Agri. &. allied Marine Ores and minerals Mfg. goods Eng. goods Cotton yarn and fabrics Ready made garments Germs & jewellery TOTAL 4326.56 (17.19) 1207.26 (4.80) 1061.06 (4.22) 1650.69 (6.56) 4435.29 (17.62) 3264.28 (12.97) 3876.18 (15.40) 5345.52 (21.24) 35006 (100.00) 1998-99 3952.25 (16.51) 1038.24 (4.24) 890.94 (3.64) 1653.36 (6.76) 3803.51 (15.55) 2773.78 (11.34) 4444.42 (18.17) 5904.05 (24.13) 33659 (100.00)

Figures in brackets indicate relative share to total. 1.12. The pre-cooling and cold storage units referred above are also established as a part of the liberalisation of Indian economy and most of the units were sanctioned between 1993-94 and 1996-97 and started export of grapes. The inspiration for export of grapes was because of the efforts done by 'Mahagrapes', (a cooperative organisation of grape growers/exporters), which had set up precooling and cold storage facilities in collaboration with NCDC. Mahagrapes also make available other infrastructure required for grower exporters of grapes. The export of grapes is on the increase ever since these units have come into existence.

CHAPTER-II SUPPORT AVAILABLE FOR PRE COOLING AND COLD STORAGE UNITS 2.01. Generally the Government and its policies play a crucial role in development of any sector. This could be by way of infrastructure creation, tax legislation, provision of subsidy, soft loans, etc. Hence, an attempt has been made in this chapter to analyse the various facilities/support that was made available by Government of India and Government of Maharashtra either directly or through their sponsored agencies like NHB, APEDA, NCDC, MSEB, etc. Government of India 2.02. Government of India, Ministry of Food Processing Industries (MoFPI) has three component plan for setting up of post harvest infrastructure facilities for food processing. Industrial Estates/Food Parks and for preservation and processing of fish either by way of loan or grant which would be upto 50% of the cost of capital equipment subject to a maximum of Rs.25 lakh as grant or Rs.50-150 lakh as loan for first and third components. For the second component, upto Rs.400 lakh would be given as a grant. An implementing agency can avail loan or grant only and not both under MoFPI scheme. 2.03 In addition to the above components, MoFPI, GOI also extends assistance for dissemination of low cost preservation technology on grant basis upto Rs. 5 lakh.

2.04. Further, MoFPI, GOI extends the grant @ 100% of the project cost to Non-profit organisations / Universities / NGOs, Public sector or @33.33% of the project cost to the Private sector, to undertake R&D projects relating to development of post harvest management techniques. 2.05. It has also a scheme for development of manpower requirements of food processing industries. This covers cost of training as also for creation of infrastructure facilities. It ranges from Rs.2.00 lakh to Rs.50.00 lakh.

2.06. Specific grant based schemes are for marketing of assistance (Rs.10 lakh-Rs.25 lakh), strengthening of backward linkages (Rs.10 lakh), participation in international exhibitions, promoting studies, conduct of market surveys (Rs.3 lakh), etc. Government of Maharashtra 2.07. GOM through Maharashtra Agro-Industries Development Corporation is implementing a scheme for establishing cold storage chain for fruits and vegetables. Under this scheme the following incentives/facilities are offered. 2.08. Government of Maharashtra provides 25% of the capital cost of pre cooling, cold storage, refrigerated van, etc., to farmers, industrialists, exporters, cooperative institutions, NGOs or to the Public Sector. However this is limited to Rs.30.00 lakh. 2.09. Government of Maharashtra reserves certain plots in industrial estates for setting up of pre cooling and cold storage units and also extend sales tax concessions to these units. 2.10. Maharashtra State Electricity Board charges uniform rate of Rs.1.50 per unit of consumption of electricity for both LT and HT pre cooling and cold storage units. 2.11. Green Houses and Poly Houses are exempted from payment of property taxes. Further, food processing industries need to renew their licenses once in 5 years as against 2 years currently. 2.12. Extends 25% of the Air freight as subsidy to promote export of fruits and vegetables. Similarly, for promoting exports to new markets orto test marketing of new products, subsidy upto Rs.2.00 lakh is provided. APEDA 2.13. Agricultural Produce and Exports Development Agency (APEDA), an export promotion body for agricultural products under Ministry of Commerce is implementing a number of schemes. The brief details of APEDA Schemes are given in Table 2.1.

Table-2.1. APEDA Schemes for Export Promotion SI. No. 1 Activity Feasibility studies, surveys, consultancy and data upgradation Infrastructure Development a) Purchase of refer vans b) Setting up of the cooling unit c) Setting up of machine handling facilities. d) Purchase of packaging material for domestic transport of the produce. e) Providing facilities for pre shipment treatment. f) Setting up of sheds for storing, grading and cleaning operations g) Setting up of cold storage i) Setting up of vapour heat, electronic beam processing, or irradiation treatment k) Supply of product samples for test marketing. Air freight / cost of sample or both 1 ) Cost of packaging material m) Air freight subsidy on export 30% 25% of lATA freight rates or 1/3 of the FOB value 25% 50% 50% 50% 2.5 lakh per beneficiary 10 lakh per beneficiary 10 lakh per beneficiary 5 lakh per beneficiary Subsidy as Ceiling % of cost (Rs.) 50% Rs.10 lakh in case of public Sector / State / Semi Govt. Rs.2 lakh per individual

25% 50%

10 lakh per beneficiary 5 lakh per beneficiary

50% 50%

50 lakh per beneficiary 50 lakh per beneficiary

.50 lakh per beneficiary

1 lakh per beneficiary Rs.10/-per kg. for N.Asia, SE Asia and CIS countries. Rs.25//kg for Europe, North America and Far East.

However, total assistance for items under 2 from 'a' to 'g' shall not exceed Rs.25 lakh 2.14 APEDA also extends support to exporters, producers, trade associations, public institutions for setting up laboratories for improving

quality and certification. Further, APEDA reimburses the cost ot pesticide residue testing of exports. NHB 2.15. National Horticultural Board (NHB) has various schemes for development of production and post-harvest management of commercial horticulture. Recently NHB has launched Capital Investment Subsidy Scheme for construction/expansion and modernisation of cold storage and storage for horticultural produce with following pattern: -> -> -^ ^ -> -^ Promoters should bring 25% of the project cost. 50% is term loan by banks at PLR + 1 % through NABARD refinance. Credit linked capital subsidy @25% of project cost subject to a maximum of Rs.50 lakh. For NE states the same would be 33 1/3% and Rs.60 lakhs respectively. Whereverterm loans are not raised from institutions, NHB would provide loans/subsidy directly. The subsidy would flow from NHB and operated by NABARD through commercial and cooperative banks and by NCDC where cooperatives institutions seek loan from NCDC. -> -> -> The subsidy would be released to bank/ financial institution as per the guidelines issued to NABARD by NHB. For modernisation and expansion of cold storage, subsidy would be given @ Rs.1000/ton. For other storage, subsidy would be at a rate of interest of 8.5% and quantum of refinance would be 90% of the amount financed to borrower (95% for SCARDBs (State Land Development Banks) andforNE States and Sikkim). -> -> ^ The scheme would be operational upto March 2002. Subsidy would be made available through NABARD and is available to units only after commissioning. In case if no bank loan is involved, promoters have to apply

directly to NHB for subsidy. -> The subsidy under capital investment subsidy scheme would be back ended. The repayment schedule would have to be drawn by banks in such a way that the subsidy amount is adjusted after the bank loan (net of subsidy) is liquidated. 2.16. Further, NHB extends assistance for Technology Development and Transfer which includes introduction of new technologies, providing expert services from India and abroad, conduct of seminars, arranging study tours, etc. 2.17. NHB also extends assistance to farmers, exporters, dealers, etc., by generating market information reports. It also conducts technoeconomic feasibility studies to review the present status of horticultural development in particular area of the state so as to identify constraints and suggest remedial measures. 2.18. NHB further extends soft loan @ 4% for setting up post-harvest management systems. The loan shall be repayable in 9 years not exceeding 5 years for repayment of principal. However, there is no moratorium on interest payments. NCDC 2.19 National Cooperative Development Corporation (NCDC) has a special schemes for cooperative societies for setting up post harvest infrastructure for horticultural crops in an area of operation where sufficient produce for full utilisation is available. 2.20. NCDC provides loan assistance for longer period for 9-10 years with a moratorium upto 4 years. There shall be no moratorium on payment of interest. NCDC gives 50% as term loan and remaining 50% as equity to the beneficiary cooperative society. 2.21 . The sanctioned assistance shall be released to the State Government/ Bank in the form of reimbursement finance. The State Government/ Bank should first disburse and then seek reimbursement from NCDC. Assistance to cooperative societies would be released on guarantee of the respective State Governments. 10

2.22. NCDC has also a scheme for extending short/medium-term loan to Apex Cooperative Societies engaged in marketing, processing and export of agricultural produce for meeting their working capital requirements. 2.23. Capital Investment Subsidy Scheme of NHB, is applicable to NCDC financed projects also. Promoters have to apply directly to NCDC and subsidy is released by NCDC directly to the promoters.

11

CHAPTER-MI MINIMUM QUALITY STANDARDS FOR EXPORT OF TABLE GRAPES 3.01 . India produces approximately nine lakh ton of fresh grapes, but export from these grapes is little over 12,000 ton, which is around 1.33 per cent of the total production. Indian grapes are exported mainly to Gulf Nations, Middle East, U. K., Germany, Netherlands, Singapore, Hong Kong, etc. 3.02. Among the export, 90 per cent is for Gulf and Middle East Nations, while eight per cent is to that of European countries and rest goes to South East Asian and other countries. Export to European Nations is limited as Europe is highly quality conscious. Even for other countries, quality is important. In order to understand the quality requirements of importers or quality of export grapes, an attempt has been made in this chapter to analyse the minimum standards required for export of table grapes. Classification 3.03. The table grapes can classified into four classes which are defined below: L Extra class The table grapes in this class must be of superior quality. In shape, development and colouring, the bunches must be typical of variety, allowing for the distinct in which they are grown and have no defects. Berries must be firmly attached, evenly spaced along the stalk and have their bloom virtually intact.

n.

Class-!
The grapes in this class must be of good quality. In shape development and colouring, the bunches must be typical of the variety allowing for the distinct in which they are grown. Berries must be firmly attached and as far as possible, have their bloom

12

intact. They may, however, be less evenly spaced along the stalk than in the Extra Class. The following slight defects, however, may be allowed provided that these do not affect the general appearance of the produce and the keeping quality of the package. Slight defects of shape Slight defects in colouring Very slight sun scorch affecting the skin only ML Cjass-il This class includes table grapes which do not qualify for inclusion in a higher class but satisfy the minimum requirements laid down above. The bunches may show slight defects in shape, development and colouring provided these do not impair essential characters of the variety, allowing for the distinct in which they are grown. The berries must be sufficiently firm and sufficiently attached and where possible, still have their bloom. They may be less evenly spaced along the stalk than in Class - 1 . However, the following defects are allowed. defects of shape defects in colouring slight sun scorch affecting the skin only slight bruising

jy,

Class-Ill
This class includes table grapes which do not qualify for inclusion in a higher class but satisfy the minimum requirements of ClassII. The bunches may include some abnormally developed berries. These bunches, i.e. bunches in which the grapes are abnormally far apart on the stalk, and thick bunches in which grapes are too close together, shall fall in this class.

3.04. Of the above four classes, only Extra class and Class-I are accepted by exporters subject to other qualities which are detailed below.

13

3.05. Sizing is determined by the weight of bunches and the following are the minimum weight requirement per bunch. Table 3.1 Class Extra 1 1 1 III House varieties 300 250 150 75 Open field varieties Large Berry Small Berry 200 150 100 75 150 100 75 75

Provisions concerning tolerances Quality tolerances 3.06. The quality tolerance can be 5% by weight of bunches not satisfying the requirements for the class, but meeting those for the class immediately below and for classes I & II; 10% by weight of bunches not satisfying the requirements of that class but meeting those for the class immediately below respectively. The same is 15% for Class-Ill. Size Tolerances 3.07. 10% by weight if bunches not satisfying the size requirement for that class, but meeting the size requirement for that class immediately below respectively for Extra, I and II classes. The same is 15% by weight of bunches weighing less than 75 grams. 3.08. In all the classes also subject to special provisions for each class and the tolerances allowed, bunches and berries must be * * * * * * sound; produce effected by rotting should be excluded. clean, practically free of any visible foreign matter free from damage by pests or diseases. free from all visible traces of mould. free from abnormal external moisture. free from foreign smell or taste. intact, well formed, normal developed.

14

* *

must display satisfactory ripeness must withstand transport and handling.

Post-harvest Management for export 3.09. Pack House * * Pack house must be clean. Frequent and efficient disposal of waste should be done. Staff should maintain cleanliness and hand washing must be adopted. Hot air dryers or disposal paper towels should be used for hand drying. * * * Protective clothing must be worn in the pack house. Head gear/ caps must cover the hair. Rest areas for workers should be away from pack house. Pack house to be solid construction, not allowing access to rodents or bisels. Windows to be fly-proofed with mesh screens. Insectocuters to be installed in the pack house. These should be fitted with catch freeze to prevent insects falling into packed product. Product cooling, storage and packing 3.10. Pre-cooling is aimed at reducing the field heat, prompt removal of field heat of harvested grapes is the best way of retaining the freshness of grapes for longer time. The temperature of harvest grapes has to be brought down to less than 4 C within six hours of harvest. Once pre-cooling is done, the dual releasing sulphur dioxide (Grape Guard) is to be placed with their coated surfaces downwards on the filled plastic pouches and are to be covered with the plastic sheet lining. The boxes are closed and then shifted to cold storage rooms where the temperature and humidity are maintained at 0 C with "^0.5 C variation and 94% with *2% variation respectively. 3.11. The arrangement of boxes in the cold storage to ensure uniform cooling of all berries in a box and all the boxes is very important. The carton size should be:

15

i) 400 mm X 300 mm x 125 mm ii) 600 mm x 300 mm x125 mm

Net weight - 4.50 Kg. Net weight - 8.25 Kg.

for European super markets and net weight of 2 kg / box for Dubai markets. Pouch bags to be used from food grade low density poly ethylene. A minimum of 9 bags in a 4.50 kg. / 5.00 kg. carton and 16 in an 8.25 kg. carton should be used. Bag weight should be between 400 and 700 grams with no more than 2 bunches per bag. Liner bags should be of good quality clear polythene and large enough to cover the grapes and grape guard with a good overlap. 3.12. Boxes should be palletised on a 48" x 40" pallet with paper board corner posts and steel strapping. Different growers produce should be palletised separately, clearly marked for easy identification. The minimum berry size should be 18 mm and Brix is 18%.

16

CHAPTER

IV

METHODOLOGY OF STUDY 4.01. National Banl< had sanctioned 25 schemes involving 56 pre cooling and cold storage units spreading across the different regions of Maharashtra State. Govt, of India has launched a new scheme to promote/expand this activity. In view of the disbursement of sizable amount and emphasis to be given in future, it was felt necessary to conduct an evaluation study on the subject matter in Maharashtra State so as to firm up our policy and to understand forward and backward linkages. Objectives 4.02 The broad objectives of the study are : to assess the actual cost of investment, the amount of loan sanctioned & adequacy of the loan amount provided by banks ; to examine the adherence to technical specifications and to identify the reasons for divergence, if any ; to understand and asses the production, chain linkages, institutional linkages and other forward and backward linkages ; to understand the operational problems faced by the entrepreneurs / owners of cold storage units; to estimate the benefits accruing from the investments to entrepreneurs and utilisers/ hirers; and to study the repayment performance

Sampling Design 4.03 The distribution of sanctioned units spread to 6 districts across different regions of the state which can be seen from table 4.1. But on a careful examination, the schemes sanctioned in Amaravathi and Ahmednagar districts have not claimed any refinance thereby leaving only four districts. Of the four districts also, 15 schemes involving 40 units

17

were sanctioned in Nasik district, four schemes, involving 11 units were sanctioned in Sangli district. The remaining three schemes involving three units were in Latur (2) and in Pune (1) districts. Hence it was decided to take up Nasik and Sangli districts for detailed study. The details of schemes sanctioned are given at Table - 4.1. Table - 4.1 Details of Schemes Sanctioned in Maharashtra State
District Banl<& No. of Date Total Refinance Refinance units No. of of Financial sanctioned Disbursed in schemes sanction outlay Rs. Rs. sanctioned each Rs. scheme BoM(4) 5 1 7 6 Total Bol (4) 19 1 1 1 10 Total DCCB 13 1 1 1 Total BoB (2) Total UB{1) Total UCOBK(I) Total Can.Bk (1) Total Total Nas ikDIst. (16) 3 1 0 2 1 1 1 1 1 1 40 1544.739 09.08.94 27.01.94 27.01.94 18.02.98 09.08.94 31.12.93 09.08.94 21.06.95 15.03.96 15.03.96 06.09.96 18.03.95 28.10,93 28.02.95 22.03.95 18.03.96 77.250 45.000 141.740 284.010 548.000 34.640 48.770 39.450 583.266 706.126 62.807 26.500 31.227 120.534 49.000 42.011 91.011 40.202 40.202 23.700 23.700 15.166 15.166 754.078 43.454 28.000 99.218 96.830 267.502 12.800 18.000 11.700 300.396 342.896 40.040 15.764 21.234 77.038 18.000 17.500 35.500 13.741 13.741 10.500 10.500 6.901 6.901 613.411 41.573 27.965 99.218 88.104 256.860 6.723 15.981 10.781 238.575 272.060 24.860 0.000 0.000 24.860 14.505 16.674 31.179 11.333 11.333 10.500 10.500 6.619 6.619 81.35 95.91 100.00 82.48 87.83 32.27 79.34 96.00 (Rs lakhs) %of Achieve -ment

Nasik

18

(Rslakhs^
District No. of Bank& Date Total Refinance Refinance %of units No. of of Financial sanctioned Disbursed Achieve -ment in schemes sanction outlay Rs. Rs. sanctioned each Rs. scheme DCCB (4) 8 1 1 1 Total Total Sangli DIst. (4) Latur BoM (2) 11 11 1 1 ToUl Total for Latur Dist(2) Pune BoM (1) 1 Total for F 'une Dist .M) A' Nagar DCCB (1) Total 'Nagar Dist. (i; Total for A Amara- BoM (1) vathi Totel 1 1 1 1 1 1 1 56 17.03.97 05.07.96 2 2 1 21.03.96 77.280 08.03.95 18.03.96 22.11.93 19.01.94 25.03.95 22.06.95 632.304 79.038 120.524 81.179 913.045 913.045 59.480 33.500 92.980 92.980 77.280 29.000 77.280 36.000 36.000 36.000 663.000 663.000 663.000 429.976 53.747 63.556 55.202 602.481 602.481 31.227 12.500 43.727 43.727 29.000 28.305 29.000 21.600 21.600 21.600 12.000 12.000 12.000 282.367 34.560 41.440 39.850 398.217 398.217 24.416 12.500 36.916 36.916 28.305 97.60 28.305 0.000 0.000 0.000 0.000 0.000 0.000 1076.849 0.00 0.00 0.00 0.00 0.00 73.82 97.60 84.42 84.42 66.10 66.10

Sangli

Total for; ^'vathi Dist (1) Total for the State (25)

2727.044 1462.886

'Jointly with 4 schemes of Pune District

4.04 It can be seen from the table 4.1 that the cold storage units in Nasik district were implemented by Nasik District Central Cooperative Bank and Commercial banks while in Sangli district, all the units were implemented by Sangli District Central Cooperative Bank. The major banks were Bank of Maharashtra (19 units), Bank of India (13 units), NDCCB (3 unrts). Bank of Baroda (2 units) in Nasik district and SDCCB (11 units) in Sangli district. Out of the 40 units financed in Nasik district, 15 units were selected and all the 11 units were selected from Sangli district for detailed study. In addition to these 26 units, three units financed by NCDC / Mahagrape and one unit of VEFCO were

19

also visited and discussions were held with concerned people in order to have better understanding of the functioning of pre-cooling and cold storage units. However, entire analysis is restricted to NABARD refinanced schemes only. The distribution of sample units among different banks is presented in table 4.2. Table 4.2 Bank wise distribution of sample units SI.No. 1 2 3 4 5 6 Name of the Bank Total No. of units NDCCB SDCCB BOM BOI BOB Other units Total Units * 2 units have not yet taken off 4.05 The required data for the study was collected through a well designed questionnaire. The information was obtained from the banks and also from the unit members. Information on facilities made available by various organisations is collected from secondary sources and updated wherever necessary. Detailed discussions were held with bankers, importers representatives, exporters, officers of Mahagrapes and Grape Exporters Cooperative Society at Sangli, Nasik and at Pune also. Reference year 4.06 The reference year of the study is the calendar year 1999 and all the costs and benefits have been valued at the year 1999 prices. All the *3 11 14 19 13 2 26 30 4 Sample units 1 11 12 7 5 2

20

pre-cooling and cold storage units work for about 45 to 60 days in between 15 February and 15 April every year and hence calendar year is considered as reference year as export amount would be coming only after 60- 90 days. By and large, the conclusions drawn in this report are based on the data collected from the pre cooling and cold storage units supported by NABARD. However, all other relevant information was incorporated wherever necessary. 4.07 Primary data in respect of production, quantity exported, expenditure incurred, price realised, etc., was collected from selected units by direct interview method and all other related information was collected from banks. Financial viability of the investments was worked out using Financial Rate of Return.

21

CHAPTER-V DESCRIPTION OF THE STUDY AREA 5.01. The study area covers Nasik and Sangli districts. Both the districts are traditionally grape growing areas. Various demographic, physiographic and economic features of the selected districts are discussed in this chapter. 5.02 Nasik district is located between 18.33- 22.53 North latitude and between 73.16 - 75.16 East longitude at North-West corner while Sangli district is located between 16.46-17.10 North latitude and between 73.42 - 75.40 East longitude at southern side of the district, both falling in the Western Maharashtra region. Geographically, Nasik district is larger in size (15633 sq.km) as compared to Sangli district (8610sq.km). For administrative convenience, Nasik district is divided into 15 blocks and Sangli district is divided into 8 blocks.

5.03 The population of Nasik district as per 1991 census was 38.51 lakh with 64% rural population, while Sangli district had a population of 22.09 lakh with 77% rural population. The density of population was more in Sangli district (259 per sq.km) than that of Nasik district (246 per sq.km). In both the districts, the literacy rates were around 62%. 5.04 Godavari and Krishna are major rivers flowing in Nasik and Sangli districts respectively. The annual average rain fall of Nasik district was 2600 mm with 90% of it is received from June to September (South - West monsoon). The maximum temperature in summer months is 42.5 C and minimum temperature in winter is about 5 C. The relative humidity is between 43%-62%. In Sangli district the annual average rainfall was 625 mm with 90% of it is received from June to September (South-West monsoon). The maximum temperature in summer months is 47 C and minimum temperature is about 7 C in winter months. The relative humidity varies between 40%-65%. 5.05 The pattern of land use indicated that the net sown area of Nasik district was 8.73 lakh ha forming 51 % of the total geographical area while in the Sangli district the same was 6.73 lakh ha forming 78% of

22

the geographical area. The area under double copping is 16% and 11 % respectively for Nasik and Sangli districts. 5.06 The cropping pattern in both the districts is dominated by food crops which is about 55% in Nasik district and 58% in Sangli district. Plantation & Horticultural crops occupy about 1 % of the area in Nasik district and about 0.7% area in Sangli district with grapes as a dominant crop in both the districts. 5.07 Both Nasik and Sangli districts are covered by good network of road and rail connecting with majortowns in India like Mumbai, New Delhi, Rune, Bangalore, etc. Both the districts are having excellent banking facilities as 448 and 404 bank branches are operating respectively in Nasik and Sangli districts.The ground level credit flow for priority sector is about Rs.600 crores in Nasik district and Rs.200 crores in Sangli district.

5.08. In both the districts, 'Mahagrapes', an organisation working for development of grapes and export of grapes. Similarly Maharashtra Grape Growers Association is also having offices in both the districts. These organisations not only help grape growers by supplying all relevant material required for grape cultivation, but also advises them on technical matters. Further, they also supply all the material required for export of grapes and manufacture of dry grapes. 5.09. Agricultural Research Centre for Grapes (ARC-Grapes) of Indian Council of Agricultural Research is also located at Rune, Maharashtra, which is almost at equidistant both from Nasik and Sangli districts also extend technical assistance as and when required by farmers. Mahagrapes and Maharashtra Grape Growers Association have been utilising the expertise of ARC Grapes, Rune. 5.10. Tasgoan, in Sangli district and Niphad and Dhindori blocks in Nasik district are prominent clusters in grape cultivation. Tasgoan, apart from fresh grapes, is also famous for marketing of dry grapes. APMC, Tasgoan is the biggest dry grape market in India.

23

CHAPTER-VI COLD STORAGE PROJECTS AND THEIR IMPLEMENTATION 6.01 . It is already mentioned in Chapter-IV that this study was conducted in Nasik and Sangli districts, which are not only leading in cultivation and production of grapes, but also having large number of pre-cooling and cold storage units. The package sanctioned by NABARD for setting up of pre-cooling and cold storage units is given in table 6.1. In addition an attempt has been made in this chapter to analyse various aspects of project implementation and management of project. TABLE-6.1. Details of schemes sanctioned in Nasik and Sangli districts (Rs.lakh) SI. No. 1 1 2 Name of the district 2 Nasik (40) Sangli (11) TOTAL (51) Total financial outlay (Rs.) 3 1,544.74 913.05 2,457.79 Refinance sanctioned (Rs.) 4 754.08 602.48 1,356.56 Refinance disbursed (Rs.) 5 613.41 398.22 1,011.63 % of 5/4 6 81.35 66.10 74.57

Figures in brackets indicate total number of schemes. 6.02. It can be seen from the above that the achievement in refinance disbursement in Nasik district was 81.35 %, while the same was 66.10 % in Sangli district. The same for both the districts together was 74.57 %. The percentage of achievement would have been higher than 81.35% in Nasik district but for the 2 out of 3 schemes sanctioned toDCCB, Nasikdid not materialise. In the case of Sangli even though all the schemes had taken up, the refinance target could not be reached because the sanction included working capital for 15 days which was approximately Rs.25 lakh per unit and as the bank has not extended this facility, the achievement was down by Rs.204.26 lakh which otherwise could have been achieved. The reasons for the same were analysed in detail else where in the report at an appropriate place. Out of the 51 schemes sanctioned in Nasik and Sangli districts, 26

24

units were visited by study team for detailed examination as mentioned in Chapter-IV and the following are implementation aspects of the selected schemes. Project Cost 6.03. There is no standard project cost for the pre-cooling and cold storage units. The project mainly depended upon the installed capacity of the units and type of technology chosen i.e. whether indigenous or imported. The total project cost in respewt yf the 26 units selected for the study are presented in Table 6.2. TABLE-6.2. Project cost of pre-cooling and cold storage units
(Rs.lakh) SI. No Name of the project District Installed &Banlc capacity inMT Date NABARD Bank Prom- Actual of sancti- loan oters project disbu- contri- cost as sanoned rsed bution sessed ction project # cost OS Rs. Rs. Rs. Rs. 30 t1.12.93 68.037* 36.76 2.30 54.05 3.2.93 @ 11.002 9.35

1 Vasanthadada Grape Growers Coop. Soc. Ltd. Anjani 2 Chaman Grape Growers Coop. Soc, Ltd. Nimni 3 Yelavi Grape Growers Coop Soc Ltd, Kundal 4 Kundal Grape Growers Coop Soc Ltd, Kundal

DCCB Sangli

PC 7.5

DCCB Sangli DCCB Sangli DCCB Sangli

7.5

30

11.12.93 68.037* 36.76 9.35 3.2.93 @ 11.002 9.35 11.12.93 68.037* 36.76 7.52 3.2.93 @ 11.002 9.35 11.12,93 68.037* 36.76 2.90 3.2.93 @ 11.002 9.35 11.12.93 68,037* 36.76 3.2.93 @ 11.002 9.35 11.12.93 68,037* 36,76 3.2.93 @ 11.002 9.35 5.02

58,06

7.5

30

55.02

7.5

30

45.48

5 Bhilwandi Grape DCCB Growers Coop Soc Sangli Ltd, Bhilwandi 6 Shiva Sakhi Grape Growers Coop. Soc. Ltd. Savalaj. 7 Shri Veerabhadra Grape Growers Coop. Soc. Ltd. Gardi. DCCB Sangli

7.5

30

51.98

7.5

30

4,30

51.86

DCCB Sangli

7.5

30

11.12.93 68.037* 3.2.93 @ 11,002

36.76 4.50 9.35

46.82

25

8 Shri NathGrape DCCB Growers Coop Soc Sangli Ltd, Kundal 9 Mahalaxmi Grape DCCB Growers Coop Soc Sangli Ltd, Mahankal 10 Khanderaya Grape Growers Coop. Soc. Ltd. Waiphale DCCB Sangli

7.5

30

11.12.93 68.037* 36.76 4.34 3.2.93 & 11.002 9.35 11.12.93 68.037* 36.76 4.00 3.2.93 @ 11.002 9.35 81.180* 54.98

50.10

7.5

30

47.73

7.5

5 0 " 25.7.95

5.37 64.10 8.00 74.25

11 Sam path rao DCCB Deshmukh Sangli Phalbhajya Vikriva SliitagrihaCoop. Soc. Ltd. Kadepur. 12 Tasty grapes 13 Susheel grapes 14 Leading agro 15 l\4ouli international 16 Holly grapes 17 Panchwati 18 Mass exports

7.5

50** 4.4.95

120.52*

52.10 11.28

NASIK 2+2$ 30 BOB

18.2.98

49.00 43.00 36.47 19.15 48.00 40.10 38.98

36.00 22.58 28.95 12.53 36.00 30.82 29.82

7.00 20.81 8.39 6.97 12.78 10.28 8.81

43.00 43.39 37.34 19.15 48.78 41.10 38.63

NASIK 72.5+2.5$$ 19.8.94 BOB 50 NASIK 2.5 BO! NASIK 2 BOI NASIK 4 BOI NASIK 2 BOI NASIK 2.5 BOI 30 20 40 30 30 18.3.95 18.3.95 15.3.96 18.3.95 18.3.95

19 Akkar exports 20 Krushirath Agro-industry 21 SACO fruits 22 Malode Agro Exports 23 Boraste Agro 24 Traimbakraj 25 Kadava Farms BOM 26 Anand Grape Growers Coop. Soc. Ltd.

NASIK 2+2$$ 30 BOM NASIK 1.5 BOM NASIK BOM 2 20 30

22.3.95 22.3.95 18.3.96 22.3.95

38.34 29.50 25.34 18.05 45.00 33.64 28.60 65.00

28.74 10.00 20.00 19.00 13.00 7.50 40.00 16.25 25.00 20.00 56.30

11.52 10.00 7.50 7.90 8.00 9.00 13.00 2.94

40.26 30.00 32.84 20.90 48.00 34.00 33.00 61.75

NASIK 2+3$$ 30 BOM

NASIK 5+8$$ 50 28.2.95 BOM NASIK BOM NASIK 2 4 20 40 22.3.95 22.3.95

NASIK 6 DCCB

50** 31.12.93

26

$ $$ PC #

Machinery for 2nd unit not installed. Additional units not considered in actual cost. Pre cooling. CS Cold storage. As per the quotations/Balance sheets of units. 2 units of 25 MT each. @ @ Collected as deposit from members. @ Amount sanctioned for PC. Includes working capital for one cycle.

6.04. It can be seen from table 6.2. that the total cost varied from Rs.19.15 lakh to Rs.74.25 lakh with an average cost of Rs.45.10 lakh. The project cost of units of Sangli district when compared with units of Nasik district were on the higher side. This was mainly due to the installation of higher capacity of pre cooling and cold storage units. As can be seen from the table 6.2, every unit in Sangli district had an installed capacity of 6 MT /6 Hrs. pre cooling and 30 - 50 MT cold storage. In Nasik district, barring four units, all other units had a pre cooling capacity of less than 3 MT/6 hrs and 30 MT of cold storage. 6.05. Of the total cost of setting up of pre cooling and cold storage units, major share i.e. 60 per cent had been accounted for pre cooling and cold storage machinery including insulation, electrification and generator set. 30 per cent was accounted for construction of civil structures. Remaining was accounted for land, electricity deposit, pre operative expenses, etc. 6.06. In all the cases, there is no time or cost overrun. In most of the cases, civil works were undertaken by one of the promoters or by their relatives while that of installation of plant and machinery for pre cooling and cold storage was done by supplier on turnkey basis and the costs were well within the estimated cost. All the projects were completed within 10-12 months. Out of which, installation of plant and machinery for pre cooling and cold storage including insulation work took 3 months. 6.07. The supplier, once everything is completed, gave training to one of the identified persons on operational aspects of pre-cooling and cold storage machinery and also provided guarantee against defect of machinery for 12 months. Afterwards sales service were also made available to them. No unit had reported any major problem during the

27

last 5-6 years of operations and overall working of plant and machinery was reported to be good. 6.08. It is observed that in all the units financed under cooperatives, the capital costs are on higher side. This is one of the reasons that the units under cooperative sector are set up with lower margin money than stipulated by NABARD. This has happened mainly because of wrong estimates/certifications by architects and inflated quotations from suppliers. The details of margin money is discussed in the following paragraphs. Margin Money 6.09. It can be seen from the table 6.2. that in the case of private sector units, the margin was more than 25% and averaged it to 26.81%. Eventhough NABARD had stipulated a margin of 15%, all the units established under cooperatives had contributed much less than the stipulated percentage and the same ranged from 3.4 per cent of NABARD approved project cost (Rs.2.3 lakh) in the case of Shri Vasanthdada Grape Growers Cooperative Society to 9.4 per cent (Rs.11.28 lakh) in the case of Sri Sampath Rao Deshmukh Phalbhajya Va Shitagriha Cooperative Society Ltd. The same for units in private sector ranged from 14.3 percent (Rs.7.00 lakh) in case of Tasty Grapes of Bank of Baroda, Nasik to 48.4 percent (Rs.20.81 lakh) inthecase of Susheel Grapes, Bank of Baroda, Nasik. The average margin contribution in terms to approved project cost for different banks is given in the table - 6.3. TABLE-6.3. AVERAGE MARGIN MONEY CONTRIBUTED (Rs.lakh) Bank District Average approved Average margin % cost money 7.47 DCCB(II) Sangli 74.003 5.53 Sub-Total DCCB(1) BOB (2) BOM (7) BOR (5) Sub-Total Nasik Nasik Nasik Nasik 74.003 65.00 46.00 40.21 36.54 41.41 5.53 2.94 13.91 9.56 9.45 9.66 7.47 4.52 30.24 23.76 26.00 23.33

28

Subsidy 6.10. As mentioned in Chapter-2, subsidies were made available by Central and State Governments directly or through their organisations. In fact many of the units got the benefit of subsidy from Government of India /Govt, of Maharashtra and both. The details of subsidy made available by various organisations are given in Table - 6.4. TABLE-6.4. DETAILS OF SUBSIDY AVAILABLE SI. No. 1 Name of money Vasanthdada Grape Growers Co-op. Society Ltd. ShivShakthi Grape Growers Co-op. Society Ltd. Yelavi Grape Growers Coop. Credit Society Ltd. Kundal Grape Growers Coop. Society Ltd. Khanderaya Grape Growers Coop. Society Ltd. Mahalakshmi Growers Coop. Society Ltd. Srinath Grape Growers Coop. Soc. Ltd. Sampathrao Deshmukh Phal Bhajya Vikri Va Shitagruha Coop. Soc. Ltd. (Rs.Lakh) Financing Subsidy Subsidy Source of agency sanctioned disbursed Subsidy (Rs.) (Rs.) DCCB Sangli DCCB Sangli DCCB Sangli DCCB Sangli DCCB Sangli DCCB Sangli DCCB Sangli DCCB Sangli 17.62 3.33 2.25 12.81 1.01 18.56 12.57 3.33 2.25 12.81 1.01 13.61 WMDC FPI NCDC WMDC NHB WMDC

NA

11.59

WMDC

35.00

15.22

FPI

15.00 0.98 15.00

11.72 0.98 9.99

WMDC NHB WMDC

50.00 18.90 15.00

50.00 18.90

FPI GOM WMDC/DIC

29

Bhilwadi Grape Growers Coop. Soc. Ltd.

DCCB Sangli DCCB Sangli DCCB Nasik BOM Nasik BOB Nasik BOB Nasik BOI Nasik BOI Nasik

18.41

0.16

WMDC

10 Chaman Grape Growers Coop. Soc. Ltd. 11 Anand Grape Growers Coop. Soc. Ltd. 12 Akkar Exports 13 Malode Agro 14 Susheel Grapes 15 Leading Agro 16 Mass Exports

18.41

12.46 0.74 10.00 2.87 16.25

WMDC/DIC APEDA WMDC APEDA GOM/NCDC WMDC WMDC WMDC WMDC WMDC

9.50 11.50 * * 8.09

9.50

* Subsidy sanctioned by WMDC but not released so far. 6.1 1. It can be seen from table 6.4., that the highest subsidy was sanctioned and disbursed to Sampathrao Deshmukh Phal Bhajya Vikri va Shitagriha Cooperative Society Ltd. financed by Sangli DCCB. Incidentally this is one of the largest pre cooling and cold storage financed by banks through NABARD refinance. In this case, the subsidy released by all the three agencies worked out more than the actual cost of plant and machinery. The main reason for this is the lack of coordination among subsidy sanctioning / disbursing agencies. In this particular case, inspite of availability of subsidy more than the bank loan sanctioned, the entire amount together with interest is outstanding and the subsidy cheques were encashed through some other bank by the unit. 6.12. Another noticeable thing from table 6.4. is that all the units sanctioned in Sangli except Veerabhadra Grape Growers Cooperative Society Ltd. were sanctioned subsidy. In some cases, the sanctioned subsidy was not disbursed in full due to non availability of adequate funds with the subsidy sanctioning agency (Western Maharashtra Development Corporation / District Industries Center). There is a lot of delay in releasing the sanctioned subsidy. It could also be seen that all the

30

units financed in the cooperative sector except Veerabhadra Grape Growers Cooperative Society Ltd, got subsidy sanctioned/disbursed by different agencies. 6.13. Interim Loan As there was a delay in release of the subsidy, Sangli DCCB has extended interim loan in anticipation of release of subsidy. The interim loan has to be repaid within one year. Subsidy was sanctioned only on commissioning of the units and the purpose of sanctioning interim loan in anticipation of subsidy hence could not be justified by DCCB. The details of interim loan sanctioned by Sangli DCCB for units is given in table - 6.5. The banks in Nasik district did not extend the same facility. In Sangli district, out of the 11 units sanctioned, 6 units had availed interim loan. Table 6.5 Details of Interim loan SI. No. 1 2 3 4 5 6 Name of the unit Shiv Sakthi Grape Growers Cooperative Society Ltd. Kundal Grape Growers Coop. Society Ltd. Yelavi Grape Growers Coop. Society Ltd. Mahalakshmi Grape Growers Coop. Society Ltd. Veerabhadra Grape Growers Coop. Society Ltd. Chaman Grape Growers Coop. Society Ltd. (Rs.lakh) Subsidy Interim loan sanctioned (Rs.) released (Rs.) 10.00 9.25 2.70 9.00 10.20 10.00 13.81 11.59 13.61 12.7 13.19

6.14. It could be seen from the table 6.5. that highest amount of interim loan sanctioned was Rs. 10.20 lakh and lowest amount was Rs.2.70 lakh with an average of Rs.8.53 lakh. It may further be observed that in all the cases the interim loan together with interest was adjusted except

31

in the case of Veerabhadra Grape Growers Cooperative Society Limited as the unit was not sanctioned subsidy by any agency and the amount of Rs.15.30 lakh is overdue in the books of Sangli DCCB on account of interim loan. NHB Soft loan 6.15, National Horticultural Board (NHB) as a part of the package of assistance extended soft loan at 4% interest rate payable over a period of 5 years. NHB has released this amount in 1994-95 after completion of units and has to be repaid with one year grace period. National Horticulture Board has released this amount against Bank guarantee of DCCB. DCCB has initially adjusted the loan as per the interest slabs, but the societies had not repaid to NHB /DCCB on due dates. As the DCCB had given guarantee for repayment of soft loan to NHB, it had repaid the installments on the due dates to NHB and treated the amount as regular loan charged at market interest rates. This had led to higher loan outstanding and excess over dues. The soft loan was made available to units financed in cooperative sector that too in Sangli district only. The units in Nasik had not applied/availed this facility. The details of soft loan given by NHB and its repayment schedule stipulated by NHB are given in tables 6.6. and 6.7 respectively. TABLE-6.6. Soft loan made available by NHB (Rs.lakh) SI.No. 1 2 3 4 5 6 7 8 9 Name of the unit Vasantha Dada Patil Grape Growers Coop. See. Ltd. Shiva Shakti Grape Growers Coop. Society Ltd. Kundal Grape Growers Coop. Society Ltd. Yellavi Grape Growers Coop. Society Ltd. Mahalakshmi Grape Growers Coop. Society Ltd. Srinath Grape Growers Coop. Society Ltd. Veerabhadra Grape Growers Coop. Society Ltd. Chaman Grape Growers Coop. Society Ltd. Bhilwandi Grape Growers Coop. Society Ltd. Soft loan (Rs.) 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63 9.63

32

6.16. It could be seen from the above that out of 11 units financed inSangli district by DCCB, nine units got soft loan from NHB. All the nine units got Rs.9.63 lakh each as soft loan. The two units that did not apply for soft loan are bigger in size and had applied for subsidies only. The repayment schedule by NHB is given in table 6.7. TABLE-6.7. Repayment schedule of NHB soft loan (Rs. lakh) Year 1 2 3 4 5 Total Principal (Rs.) 192,600 192,600 192,600 192,600 192,600 963,000 Interest (Rs.) 77,040 30,816 23,112 15,408 7,708 154,084 Total (Rs.) 269,640 223,416 215,712 208,008 200,308 1,117,084

6.17. It could be seen from table 6.7 that the first year installment included interest for the grace period also. National Horticulture Board had decided the quantum of soft loan as per the breakup given in table 6.8. The DCCB, Sangli had not charged any commission/margin on soft loan. TABLE-6.8. BREAKUP OF NHB SOFT LOAN (Rs. lakh) SI.No. 1 2 3 4 Items Grading packaging house Pre-cooling Packaging house equipment Diesel generator set Total 33 Amount 2.20 5.00 1.18 1.25 9.63

Rate of Interest 6.18. The implementing banks had charged varied interest rates. While Bank of Baroda and Sangli DCCB had charged the ultimate borrowers uniform interest rate at 15%, Bank of Maharashtra charged between 16% and 17%. In the case of Bank of India, the interest rate varied between 16.5% and 18.5%. The Nasik DCCB had charged 17.5 % on the loan. Repayment period 6.19. The repayment period fixed by NABARD at the time of sanction was 5 years including one year grace. During the grace period (first year) only interest was to be collected by the banks. During the field study it was observed that banks were fixing varied repayment periods. The table 6.9. illustrates bank-wise repayment period fixed for the units financed by them. Table 6.9 Repayment period-wise schemes. Bank Repayment period in years 5 Sangli DCCB Nasik DCCB Bank of Baroda, Nasik Bank of Maharashtra, Nasik Bank of India, Nasik Total 9(1) 1(1) 10 6 1(1) 1(1) 1(1) 5(1) 8 71(2) 1(1.5) 6(2) 8

Figures in brackets indicate grace period in years. 6.20. it can be seen from the above that eighteen units allowed one year grace period while seven units allowed 2 years grace period and one unit of Bank of Baroda had allowed a grace period of one and half year. When it comes to repayment, 10 units had 5 years, 8 units each had 6 years and 7 years as repayment period.

34

Loan sanction and disbursement 6.21. No delay was noticed in any case in disbursement of loans. The loans were generally disbursed in two installments. One for taking up construction activity and other for installation of plant and machinery of pre-cooling and cold storage units. In all the cases, the loans disbursed was in full. Utilisation of loan 6.22. All the units were complete and commissioned satisfactorily in time. There were no cases of misutilisation except that in case of some units the loan sanctioned including subsidies, soft loans was more than required amount. In the case of Anand Grapes, Nasik, the unit was initially financed by DCCB, Nasik. However, the unit had subsequently availed loan from National Cooperative Development Corporation (NCDC) and repaid the earlier loan availed from Nasik DCCB. Technology adopted and its suitability 6.23. All the units visited had been used by exporters and there were no problems in quality of the grapes, which established the suitability of the units for export of grapes. All units except one i.e. Anand Grape Growers Cooperative Society Ltd. Nasik were using free on gas while Anand Grape Growers Coop. Society unit operated on any hydrous ammonia. Information on other units visited 6.24. As mentioned at Chapter-IV, in addition to NABARD refinanced units, four units; three units financed by NCDC / Mahagrapes and one unit financed to VEFCO were also visited. All these units were also set up under cooperative sector. These units enjoyed a longer repayment period of 10-12 years in addition to 1-2 year grace period. However, the rate of interest charged by NCDC varied between 16% and 17%. NCDC, apart from term loan, makes contribution @ 20% of the cost of the project as share capital. State Govt, also had made an share capital contribution @ 25% of the project cost. The members contribution was only 15% and rest 40% was extended as term loan.

35

Even though, NCDC allowed longer gestation period, there was no gestation on payment of interest. The units allow members to keep their produce on rental basis. Members were allowed space subject to availability of time for pre-cooling and space in cold storage. These units have comparatively larger pre-cooling and cold storage capacities. Inspite of the higher interest rate, the interest outflow average was relatively low due to loan component being only 40%, against 60-90% in other cases. These units also availed of subsidy from WMDC, MoFPI, GOM & NCDC and were exporting grapes of members and non members. Sanction of working capital/packaging credit 6.25. NABARD had as a part of the project sanctioned Rs.24.787 lakh for all the units in Sangli district as working capital for one working cycle of 15 days each, the same was not extended to Nasik district while appraising the schemes. Inspite of this, Sangli DCCB did not extend the facility of working capital to any unit, while all the units in Nasik district had availed working capital except in the case of Susheel Grapes which was financed by BOB but was enjoying packing credit from SBI, Nasik. Nasik DCCB, Bank of Maharashtra and Bank of India had been extending packaging credit for the units financed by them. In Nasik district, the packing credit extended was observed to be sufficient. It was informed by Sangli DCCB that as the units were rented out to exporters, there was no need for packaging credit/working capital to these units and therefore the same was not extended. Availability of other infrastructure 6.26. The grapes need to be harvested before 8.00 a.m. and pre cooled immediately after that. No unit/exporter has expressed any difficulty in getting labours for harvesting at such odd hours. In addition all the packaging material needed for export are either supplied by Mahagrapes / Grape growers association or available locally at competitive rates. The refrigerated containers are also available as and when required. Plug in facilities are also available at Jawaharlal Nehru Port Trust, Navi Mumbai. As this area is predominant grape

36

growing area, foreign super market importers make arrangements with exporters/units to pay advance for grapes. Quality grapes are available in both the districts, however, its availability is relatively less in Sangii district, as some of the farmers convert them into raisins (dry grapes) which also fetches good price without involving export risks and additional heavy investments on arrangements of exports. Insurance of the units 6.26 The study team had observed that the banks had insisted the units to obtain the insurance to cover at least the investment loan sanctioned. All the units had complied with the same. Conveyor belt system in the pack house 6.27 The units in Sangii district had a provision for establishing the conveyor belt in the pack house for which an amount of about Rs. 1.50 lakh was provided. All the units in Sangii had purchased the conveyor belt system, but the same was not installed by any unit except Sri. Chaman Grape Growers Cooperative Society Ltd. All other units had purchased plain tables with stainless steel cover. Had the conveyor beH systems not sanctioned the units could have saved about Rs.1.50 lakh. In Nasik district, no unit had the provision for conveyor belt system and has not provided the same. All the units were using tables with stainless steel covers in the pack house.

37

C H A P T E R VII ECONOMICS OF INVESTMENT 7.01 This chapter examines the viability of the units on the parameters of earnings, gross price realisation, cost of exports, net price realisation, etc.. All these data relate to the calendar year 1999, reference year of the study. While analysing the gross income, units were categorised as self exporting and rented out. 7.02 Under all the schemes, export sales to domestic sales were expected at 67:33, of which half the exports would be to UK / Europe markets and rest to Dubai market (Gulf Countries). The actual position of grape exports made by sample units during last 3 years is presented in table 7.1. None of the units used pre cooling cold storage facilities for domestic market. T^e exports to Gulf countries was not only insignificant but also inconsistent. Table 7.1 Exports from different units (No. of containers exported) SI. No 1 2 3 4 5 6 7 8 9 10 11 Name of the Unit Leading Agro, BOI, Nasik Mass Exports, BOI, Nasik Holly Grapes, BOI, Nasik Panchawati, BOI, Nasik Mouli, BOI, Nasik Anand Grapes, DCCB, Nasik Akkar exports, BOM, Nasik Krushirath Agro, BOM, Nasik SACO Fruits, BOM, Nasik Malode Agro, Bora, Nasik Boraste Agro, BOM, Nasik 1997 NA 2 12 15 2 7 18 9 2 7 17 1998 6 1 13 7 1 4 11 9 3 6 6 ' 1999 2 # 16 8 5 16 8 2 7 29 UNITS EXPORTING INTHEI R OWN NAME

38

SI. No. 12 13 14 15

Name of the Unit Trimbak Raj, BOM, Nasik Kadava, BOB, Nasik Tasty Grapes BOB, Nasik Susheel Grapes, BOB, Nasik

1997 9 4 @ 10

1998 4 1 @ 10

1999 3 9 5 13

EXPORTS FROM UNITS RENTED OUT 16 Vasanth Dada Patil, DCOB, Sangli 17 18 19 20 21 22 23 24 25 26 # ** @ 7.03 Shivshakti, DGCB, Sangli Yelavi, DCCB, Sangli Sri Chaman, DCCB, Sangli Khanderya, DCCB, Sangli Kundal, DCCB, Sangli Srinath, DCCB, Sangli Dongarai, DCCB, Sangli Bhilwadi, DCCB, Sangli Veerabhadra, DCCB, Sangli Mahalakshmi, DCCB, Sangli units rented out for that year units closed for the year units not commissioned for that year @ @ 11 @ NA ** @ 5 @ ** @ 8 2 3 NA ** @ 3 4 ** 3 7 3 7 NA 12 7 7 7 * 1 1 4

It can be seen from the table 7.1 that all the units in Sangli and one unit in Nasik was leased out on rental basis during the year 1999. On an average units in Nasik district exported eight containers to European markets. As mentioned at Chapter VI, the availability of superior quality of grapes suitable for export to Europe was only 5% of the total production and pre cooling cold storage facilities were used only for export market. None of the units were operating to the optimum capacity level. The level of operation of units in Sangli district was abysmally low, because their installed capacities are higher. As

39

the rents were fixed in relation to quantity, trader exporter had never tried to optimize the capacities utilisation as his costs were not related to the optimum utilisation of the unit. Often, the amount earned was not even sufficient to meet the operational and maintenance cost of the units, leave alone the surplus for repayment of loan installment. Gross price realisation 7.04 It was assumed that gross price realised would be UK 9 Pound in European markets and 25 Dhirams for Dubai / Gulf markets and Rs.110/- in the domestic market for a box of 4.50 / 5.00 kg. 7.05 As against the above assumptions, the actual price realised for the units that are exporting to European markets realised a minimum rate of UK 7 Pound and a maximum rate of UK 8.5 Pound for 4.50 / 5.00 kg box making an average of UK 7.75 Pound. Almost all the units were making exports to Europe and no unit made sales in domestic market after utilising the pre cooling and cold storage facilities. It was reported that even though export of grapes to Europe is generally profitable, the risk was also very high. It was reported that in 1996 season, almost all the units could not realise even the cost of export and had lost heavily During that year, all the banks in Nasik rescheduled packaging credit and / or term loans. It was reported that more than 1100 containers were exported from India to European market during that year (1996 season). Due to sub-standard quality of grapes for export and competition from Chile, price realisation was lower. This had taught a lesson to exporters and since then they had started giving due importance to quality aspects of grapes. 7.06 The gross export price realised is reflective of the overall price that Indian grapes command in the international markets. It is assumed that about 36% of gross realisation would be spent on various overseas expenses, including freight charges. But it was reported that UK 2.25 - 2.75 pounds per box of 4.50 / 5.00 kg were spent on pre cooling, cold storage, packaging, palleting container rent and transportation upto Europe, agency commission, insurance, import duties, etc. The cost of export per container upto Jawaharlal Nehru Port Trust (JNPT),

40

New Mumbai, is given in annexure- 7.1. The expenditure from JNPT, New Mumbai to Europe, marine insurance, import duties, other charges at overseas etc. are paid by the commission agents and deducted from the sale proceeds and balance would be transferred to the Indian firms. 7.07 The net price realised, thus works out to UK 4.75 to 5.50 Pound per box of 4.50 / 5.00 kg which was approximately UK 1 Pound per kg which was equal to Rs.60/- a kilo. The average net price realised constituted about 65% of FOB prices. 7.08 Even though expected FOB price could be realised, expected quantity of grapes could not be exported by any unit in both the districts. The units work for 60 to 75 days and even a 2 MT pre cooling unit + 20/ 25/30 MT cold storage can export a container in 4 days taking 2 shifts of 6/8 Hrs each shift a day making it a total of 15 - 20 containers in a season. In Sangli district, all the units have a capacity to export 50-60 containers in any given season, however the capacity utilisation was not even 1/10 of the established capacity.

7.09 The units that were rented out, earned rent @ Rs.4.00 for Kg of grapes for using the facilities of pre cooling and cold storage which amounts to Rs.60,000/- per container. All the expenses for packing, transport etc. were born by traders. Electricity bills other repairs, replacements were to be borne by pre cooling cold storage unit owners. 7.10 Promoters of all the units were originally growers of grapes. In the case of rented units, the promoters had sold grapes to traders. While in case direct exporters, they were growers and exporting their own produce. They also occasionally purchase from market, whenever, there was a shortage of produce. In both the cases, the farm gate price received per kg ranged between Rs.25/- to Rs.40/- depending on the season. Had the units not been setup, the export quality grapes would have fetched a price of Rs. 12 -18 per kg. at the farm gate. The difference to farm gate price is because of availability of pre cooling and cold storage facilities.

41

7.11 As all the units were setup with bank loans, the units should therefore be expected to generate enough surplus to meet the repayment obligation of bank loan together with interest in addition to their operation and maintenance costs. By and large, the units setup under private sector had managed well and generated enough surplus and could repay bank loans. Other units those rented out and all units in cooperative sector except one (Anand Grapes, Nasik) had not been managed properly and defaulted on repayment obligations. Anand Grapes, Nasik which had made an advance repayment, had defaulted to NCDC, which subsequently extended loan for the same unit. All the units financed in Sangli District by Sangli DCCB were incurring losses. The similar information on private / partnership firms financed by various commercial banks in Nasik district were not available to the study team. However, the fact that most of these units had made repayment of loans indicate that the activity was highly profitable. Viability of the units : 7.12 At the time of financial appraisal, the internal rate of return was worked out to over 50%. As seen, the units financed under cooperative sector, did not generate enough income even to meet operational and maintenance costs. Hence there was a need to treat the units rented out as a separate entity while working out IRR / FRR. An analysis is to be done to find out the minimum business to be done to break-even under both the circumstances in the light of the study findings. 7.13 For this purpose, the following assumptions are made : i^ All the units are 2 MT pre cooling and 25 MT cold storage, which is the average of the sample units. '5> As the indigenous technology is available and is also cost effective, only indigenous technology is considered for setting up of pre cooling and cold storage units. ^^ The capacity utilisation is assumed at 50% in the first year and 60% in the second year, onwards. As it is found that among the exporting units, the maximum containers exported were 18 by Akkar Exporters while the average of all the exporting units came to 9. With the 2 MT PC capacity, even at this export level, the

42

43capacity utilisation would be just 50% of the average unit which leaves adequate scope for expansion of exports in future. The average for units rented out is 7 containers and rent is Rs. 4/- kg. "^ The units work on a average of 75 working days for the season in double shift. '^ Conveyor belt system in pack house is not considered in the total cost. '5i> The economic life of plant and machinery is assumed as 15 years. At the end of 15 years, the residual value is taken as 20% of the project cost. "^ For units rented out, only electrical charges, periodical maintenance of plant and machinery and salary of one supervisor for the year is considered in addition to telephone rental charges for the year (subject to a maximum of 5000/- pa) ^ Interest on term loan is considered at 15.5% pa. and at 18 % p.a. on working capital. '^ Project cost includes land of one acre which costs about Rs.1.00 lakh. It also includes DG set of Rs.2.00 lakh. 'i> For working out FRR the net income received from exports is suitably adjusted by deducting the local market price so as to assess the benefit of pre cooling and cold storage units. '5^ Insurance expenditure is considered as 0.2% of the project cost. i.e. about Rsl 0,000/- per annum. 0 & M Cost of the units Wages to employees 7.14 All selected units have one full time employee. The main work was maintenance of accounts, payment of electricity bill, payment of wages for labourers and to grape growers if purchased from market, etc.. Normally full time employee was paid Rs.2000/- per month and was employed for the whole year even though work is limited to 75 -120 days including pre and post export operations. The expenditure on this count comes to Rs.24000/- per annum. In addition, an expenditure on labour for grading, sorting, packing, palletisation, pre cooling and cold storing, loading pallets in the container, etc. comes to about

43

Rs.2000/- per container. Repairs and Replacement 7.15 As the units are working only for a period of 60 - 75 days in a year, the plant machinery has to be fully oiled before start of the export operation. It was reported that on an average they spend about Rs.30,000/- to Rs.35,000/- per annum on repair/ replacement charges. Electricity & Diesel charges 7.16 The average consumption of electricity worked out to 40 KVA annually @ Rs.1.50 per unit of consumption was charged by MSEB. During the initial years, cold storages were treated on par with agriculture and charges levied were on connected load basis (on HP basis per annum). As a result, cold storage were also used for storage of dry grapes (raisins) as there was no additional cost in running the cold storage. However, ever since power charges for cold storages converted to unit basis, cold storage units were not put to use once the grape export is completed. The average electricity bill comes to about Rs.1.00 lakh for season. Diesel consumption expenditure during the peak season comes to about 15,000/-. However, in the case of units rented out this is borne by traders / exports. Other Utilities 7.17 The average expenditure on other misc. utilities like gas, sanitation, equipments for general hygiene etc. was about 10,000/- per annum. Another Rs.6,000 were spent on apparels for labourers working in the park house and about Rs.3,000/- for telephone bills. Another Rs. 5,000/- per year is considered for other misc. items. 7.18 The FRR works out to more than 50% for units that were exporting. The same was negative for units rented out. The following action points emerge from the above analysis. 7.19 Action points for future ^ Pre cooling unit of only 2 MT/2.5 MT capacity and cold storage of 25/30 MT capacity alone need to be financed as the capacity is considered adequate and reasonable

44

for the present level of exports ^ Setting up of higher Pre Cooling unit and Cold Storage lead to higher overhead costs and lower capacity utilisation. ^ Only indigenous plant and machinery need to be encouraged as it is as efficient as imported. In addition, the cost of indigenous plant and machinery is also lesser than imported one. ^ ^ If units are set-up for renting out, there is a need for higher repayment period. There is also need for better coordination among different agencies in disbursement of subsidy and the same should be released only through the financing bank wherever bank loans are involved. ^ There is no need for making a provision for conveyor belt system in the pack house, initially. Based on the performance, the same can be sanctioned at a later date, if need be.

45

CHAPTER-VIII RECOVERY PERFORMANCE Introduction 8.01 This Chapter examines the repayment performance of the selected units in respect of demand, collection and balance position, reasons for delinquency as well as reasons for timely repayment of loans. Repayment Schedule 8.02 As per the repayment schedule, loans were to be repaid to the banks within 5 to 7 years including a grace period of 1 - 2 years. During the grace period only interest was to be collected by the banks. The recovery performance of overall agricultural term loans in both Nasik and Sangli districts is good due to linking of loan repayment with sugar factories. But for pre cooling and cold storage units no such linkage is available. Demand Collection Balance Position 8.03 Data on demand, collection and balance for all the selected units is given in table 8.1 Table No.8.1 Demand. Collection and Balance position
SI. Name of the unit No. /Financing Bank 1 2 3 4 5 6 7 8 9 Sri Chamam GGCSL Shiv Sakti GGCSL Vasanth Dada Patil GGCSL Yelavi GGCSL Khanderaya GGCSL Bhilwadi GGCSL Mahalaxmi GGCSL Srinath GGCSL (As on 3 0 ,June 1999) Demand Collection DCCEI Sangli 78.38 86.34 98.73 77.47 95.11 68.59 84.93 83.35 30.72 12.65 4.5 12.12 16.11 18.24 19.07 1.18 15.84 47.66 73.69 100.05 86.61 61.36 76.87 49.52 83.75 67.51 39.19 14.65 4.30 12.28 20.80 19.18 27.80 1.39 19.00 Balance (Rs.lakh %of Recovery @

Veerabhadra GGCSL 104.55

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10 Sampathrao DeshmukhGGCSL 11 Kundal GGGSL Sub-Total for DCCB Sangli 12 13 14 15 16 17 18 Kadava Farms Boraste Agro Triambak Raj Malode Agro** KrishirathAgro** Akkar Exports SAGO Fruits Sub Total for BOM, Naslk

62.71 90.32 930.48

18.48 6.91 155.82

44.23 83.41 774.66

29.47 7.65 16.75

B0IV1, Nasik 10.53 2.83 29.06 29.06 25.00 16.37 10.40 10.50 16.00 16.28 23.00 15.01 15.20 9.13 129.19 99.18 BOB Nasik 17.20 21.50 7.20 0.00 24.40 21.50 BOI. Nasik * 10.02 12.53 14.40 18.48 23.84 66.74 36.00 24.00 29.82 102.35

7.70 8.63

7.99 6.07 30.01

26.88 100.00 65.48 100.00 100.00 65.26 60.07 76.77

19 Sushi! Grapes** 20 Tasty Grapes Sub Total for BOB, Nasik 21 Leading Agro 22 Mouli Fruit International** 23 Holy grapes** 24 Panchawati Exports** 25 Mass Exports** Sub Total for BOI, Nasik 26 Anand GGCSL** Sub Total for DCCB, Naslk Total for Nasik District (15)** Total for Sangli District (11) Grand Total for all Schemes (26)

7.20 2.90

100.00 0.00 88.11

100.00 100.00 100.00 100.00 153.36

DCCB Naslk 56.30 56.30# 56.30 56.30 276.63 930.48 1207.11 279.33 155.82 435.15

56.30 0.00 37.21 @ 774.66 771.96

0.00 100.00 100.98 16.75 36.05

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* Rescheduled to start from July 2000 # Repaid on availability of loan from NCDC @ In case recovery more than demand it is treated as 100% ** Advance recovery. Note : Totals rriay not tally due to adjustments in sub totals 8.04 It may be seen from the above that all the units in Sangli district have defaulted in repayment with an overall recovery performance of 16.8 per cent. The main reason for poor recovery performance was poor generation of incremental income from the units financed. Except Chaman Grape Growers Cooperative Society Ltd. no other unit was exporting grapes in their own name and were rented out to traders and the amount received from rent was not even sufficient to meet the interest liability on loans availed for establishment of units. Further, Sampath Rao DeshmukGGCS Ltd inspite of availing subsidy, diverted the subsidy for other purpose. It was observed that only two units viz., Chaman GGCS Ltd and Bhilwadi GGCS Ltd have shown inclination to repay. Most of the recoveries in other cases were from adjustment of subsidy when available after adjusting interim loan and interest, if any. In case of Veerabhadra, interim loan given in anticipation of subsidy had become overdue as no subsidy was sanctioned to the unit. Another reason for default in Sangli district was that all the units belong to cooperative sector and no one in the society had undertaken responsibility for proper management of funds or repayment of loan. 8.05 In the case of Nasik district, the repayment performance of the units is considered good as 8 out of 15 units had made repayments in excess of demand of loan instalments. Only one unit (Tasty grapes, BOB, Nasik) had defaulted in full and did not repay any instalments. The average repayment of Nasik district is more than 100 per cent.

8.06 The main reasons for timely and advance repayment by units in Nasik district is that all these units engage in direct export and the profits / proceeds are used to repay the loans. Further, these units are run by family as private / partnership entities and had absolute liability, made them clear the loans. In case of Anand Grape Growers Society Ltd., Nasik district, financed by Nasik DCCB, has repaid the loan in advance to Nasik DCCB as the society had received another loan from NCDC

48

with longer repayment period. However, this unit has ultimately defaulted to NCDC, inspite of exporting in its own name and reaping sizeable benefits. Rationality of Repayment 8.07 While appraising the units, it was worked out that the income from export of grapes would be sufficient to pay back the bank loans taken for setting up of the units. But in practice, all the units in Sangli district had rented out the units to traders and out of which in some cases the rental income realised was not even sufficient to meet O & M costs of the unit. Hence, in respect of rented units there is a need to give longer repayment period; say 8-10 years with one year grace period as was done by NCDC for its supported units which allows 12-14 years repayment period with two years grace period. The fact that, the units financed in private sector in Nasik district repaid loans before the stipulated period indicated that the given repayment period of 5-7 years was fairly reasonable had the units directly exported the produce. 8.08 Units operating in Sangli district though defaulted to the banks, the members of the society got good rates for their produce because of existence of these units. In case of Chaman GGCSL the members received a price ranging between Rs.45-70 per kg for export of grapes had the units not existed they would have got Rs.10-15 / kg in the domestic market. But the members did not pass on the benefit to the society and kept entire export proceeds with them. Similarly, in case of other units, traders paid any where between Rs.30-50 / kg for good quality of grapes at farm gate because of availability of pre cooling and cold storage facility near by. Their fate would have been different had these units were not established as they would have got Rs.10/to Rs.15/- in the local market. There is an urgent need by the extension agencies to educate the farmers about the benefits of pre cooling and cold storage units and need to share the benefits realised with bank by clearing their dues. 8.09 As the experience gained, the rented units are likely to switch over to exporting units to enhance their income. This is expected to facilitate clearance of dues of the banks by the rented units.

49

C H A P T E R - IX PROBLEMS AND PROSPECTS OF PRE-COOLING COLD STORAGES 9.01 India produces approximately 10 lakh tons of fresh grapes annually from about 35000 ha. However export of fresh grape is limited to about 10-11 thousand tonnes per year making exports just more than one per cent. Similarly, about another one per cent are crushed for wine. 120 thousand fresh grapes are converted to raisins (about 12%). 9.02 India exports grapes to UAE, Saudi Arabia, Bangladesh, UK, Bahrain, Kuwait, Quatar, USA, Oman, Netherlands, Sri Lanka, Germany, Mauritius, Singapore, Hong Kong, etc. Of the total exports, 90 per cent of the exports are made to Middle East, 8 per cent to European countries and rest to South East Asian countries and others. Generally, seedless green grapes meeting the standards of EEC class-l table grapes are sent to Europe and superior quality white or black seedless grapes are exported to Middle East and South East Asian Countries. 9.03 The principal grape varieties exported to Europe are Thomson seedless and Tas-A Ganesh. While Sonaka and Sharad seedless are exported to Middle East, Bangladesh and Sri Lanka. Weakness of Indian grapes in export market 9.04 The major limiting factor of growth industry is the marketing problem as more than 85% of the total production is for fresh consumption. In addition, 70 per cent of total production is harvested during February - April, (for a period of about 60 days) grape is a highly perishable crop. During above period also, exports to Europe are confined to a period of about one month commencing from middle of March. 9.05 Normally EEC class I grapes are approximately 5 % of the total production of grapes and this also depends on climatic conditions. It is reported that untimely rains during October - December sometimes affect the quality of grapes. Further, the most accepted varieties i.e. Thompson seedless and its clone Tas-A - Ganesh cannot produce grapes of the required quality, meeting EEC class -1 standards.

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9.06 The proportion of export quality grapes get progressively reduced with increase in yield over 20 ton /ha. In Sangli district farmers prefer to go for larger production and convert part of the produce into raisins. The average production in Sangli is about 45 - 50 ton / ha against 5 28 ton / ha of Nasik district. 9.07 The distance between importing countries and India requires long duration storage. Grapes are transported mainly by sea route as it is economical way of transport. But this causes delay in delivery of fresh grapes from India. There is also inadequate infrastructure facilities at production sites to maintain the cold chain from harvest to cold storage. 9.08 Incidence of large number of diseases has necessitate heavy spray schedule of pesticides as a result of which pesticide residues are many times above maximum limits. In addition, there is a tendency to make indiscriminate use of fungicides, giving rise to new set of problems.

9.09 Shortage of water for irrigation had also posing problem to ensure production of quality grapes. In fact, inTasgoan taluka of Sangli district, farmers are transporting water from a long distances by means of tankers for irrigating the grape gardens. 9.10 Fluctuation in prices in the markets abroad and lack of assured returns from grape exports is also an discouraging factor in export of grapes.

9.11 In the international market, there is severe competition from Chile. Therefore, unless we produce good quality of grapes than that of Chile, marketing in foreign countries would be difficult.. Strengths of Indian grapes in export market 9.12 Inspite of all the difficulties, we have certain added advantages in production and export of grapes. Grapes can be harvested in India by virtue of double pruning at such a time when no grapes are available any where in the world. There is also scope to stagger the fruit primming in 90% of the grape cultivated area as 90% of the area under grapes in India is in the tropical region. Further, the time of harvesting grapes can be manipulated by adjusting the fruit pruning. However, extension agencies have to educate farmers for such fruit pruning for which a lot 51

of efforts are needed. 9.13 Technology for production of export quality grapes is in vogue in India. There is also availability of experienced and required man power for various activities starting from production of grapes to packaging of grapes for export including other support services necessary for export of grapes. 9.14 Again grape producing regions are more or less nearer to sea ports and reasonably good infrastructure is available at the sea ports. Besides, there are other encouraging components available like incentives in the form of subsidy. Government support for establishing cold storages for export of fruits, ECGC cover and credit for packaging, etc., from banks. The grape growers are also aware of the export opportunities and procedures. Further, foreign trading agents are present for taking up export of grapes on a regular basis. 9.15 The export of grapes can be augmented by streamlining the exports through strengthening market intelligence. Further, a new scheme need to be designed to help exporters to tide over in bad times. Special care has to be taken before development of vine yards for export. There is also need for exploring new markets. 9.16 To achieve all these intended objectives, there is a need for proper planning, extensive market survey, strengthening of extension education for farmers, etc. This will go a long way in promoting grapes export and thereby augmenting income from pre-cooling and cold storage units.

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ANNEXURE-I

FRR FOR UNITS DIRECTLY EXPORTING (At a capacity level of 16 containers per unit) (Rs.iakh)
SI.No. Cost / Income 1 1 Capacity Utilisation Costs A. Fixed Cost B Recurring Cost a. Electricity Charges b. Insurance c. Repairs/ Replacements d. Telephone e. Diesel Expenses f. Dresses for Pack House g. Sanitation and Others h. Salary for Accountant i. Interest on Working Capital @ Rs.5.00 lakh per Container for 6 months Total Recurring Cost Total Cost ( A + B) II. Net Price Realisation from Export of Grapes (Net Realisation per Container less Opportunity Cost of Grapes) Total Income Net Surplus from Export Years 2 50% .^^ 3 - 15 60% _^

50.00

1.00 0.10 0.35 0.05 0.15 0.06 0.15 0.24 3.60

1.20 0.10 0.35 0.05 0.15 0.06 0.15 0.24 4.32

5.70 50.00 0
o

6.62 6.62 39.60

5.70 36.00

0.00 -50.00

36.00 30.30

39.60 32.98

FRR

Above

50%

53

ANNEXURE-I B FRR FOR UNITS Rented Out

(Rs.lakh) SI.No. Cost/Income 1 1 Capacity Utilisation Costs A. Fixed Cost B Recurring Cost a. Electricity Charges b. Insurance c. Repairs / Replacements d. Telephone e. Diesel Expenses f. Dresses for Pack House g. Sanitation and Others h. Salary for Accountant i. Interest on Working Capital
@ Rs.5.00 laWiper Cicntaineir f o r 6 itcntiis 3 Miscellaneous Tbtal Recunring Cost 0.05 1.79 0.05 1.99

Years 2 50%

3 - 15 60%

50.00

1.00 0.10 0.35 0.05 0.00 0.00 0.00 0.24

0.00

1.20 0.10 0.35 0.05 0.00 0.00 0.00 0.24

0.00

Total Cost ( A + B) II. Net Price Realisation from rent @ Rs. 0.60 lakh per container) X 7 containers Total Income Net Surplus from Export

50.00 0

1.79 4.20

1.99 4.62

0.00 -50.00

4.20 2.41

4.62 2.63

FRR (-0.31%)

54

ANNEXURE 7.1 AVERAGE EXPENSES UPTO MUMBAI PER BOX OF 4.50/5.00 KG FOR EXPORT TO UK/EUROPE Particulars Box Liner Bubble sheet Grape guard Tissue paper Poly pouch Pallet Pack strip Labour Inland Insurance Temp. Recorder Central excise Residue sampling charges Misc. Total Rs. 28.00 2.00 1.50 6.00 1.50 15.00 2.00 1.50 9.50 15.00 4.00 1.15 0.75 1.50 1.50 Rs. 90.90 or say Rs.91.00

This cost includes cost of grapes and cost of precooling cold storage

55

REPORTS PUBLISHED UNDER THE EVALUATION STUDY SERIES OF THE NATIONAL BANK FOR AGRICULTURE AND RURAL DEVELOPMENT A. SI. No. 1 Reports published by the Head Office of NABARD Title of Evaluation Reports Minor Irrigation Scheme - Construction of New Wells and Installation of Pumpsets thereon in Sholapur District, Maharashtra Minor Irrigation Scheme - Installation of Shallow Tubewells in Karnal District, Haryana Bhadra Land Development Project - Scheme for Reclamation and Development of Land, Karnataka Land Development under Nagarjuna Sagar Project, Miryalguda Taluka, Andhra Pradesh Dairy Development Scheme in Jagadhri block of Ambala District, Haryana Dairy Development Scheme in Moga Area of Faridkot District, Punjab Poultry Development Scheme in Mulkanoor, Karimnagar District, Andhra Pradesh Mechanised Fishing Boats in South Kanara District, karnataka Development of Acif Lime Gardents in Nellore District, Andhra Pradesh Groundwater Irrigation in Kota District, Rajasthan Minor Irrigation in Bhojpur District, Bihar Development of Grape Cultivation in Bijapur District, Karnataka River Lift Irrigation Schemes in Punt Dist, Mah. Dairy Development Schemes in Western UP River Lift Irrigation Schemes in Kolhapur District, Maharashtra Sheep Rearing in Nalgonda District, Andhra Pradesh Development of Coffee Plantation in Lower Plains Area, Madurai District, Tamil Nadu Year of Publication 1977

2 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18

1977 1977 1977 1978 1978 1979 1979 1981 1982 1982 1982 1982 1982 1982 1982 1983

56

19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45

Public Tubewells and River Lifts in Orissa Power Tillers in Hooghly District, West bengal Commercial Poultry in Krishna Dist, Andhra Pradesh Dugwell Irrigation in Palghat District, Kerala Tractors in North Bihar Dairy Development Schemes in Darjeeling District, West Bengal Tractors Schemes in Varanasi, Ghazipur and Naunpur Districts, Eastern Uttar Pradesh Tractors and Power Tillers in Tamil Nadu Minor Irrigation and Muzaffar Nagar District, UP Dairy Development in Quilon District, Kerala Dugwell Irrigation in Dhenkanal District, Orissa Bamboo & Shallow Tubewells in Purnia Dist., Bihar Dugwell water Irrigation Development in Nasik District, Maharashtra Calf Rearing in North Arcot, Salem and Coimbatore District, Tamil Nadu Minor Irrigation in Allahabad District, Uttar Pradesh Coconut Development in Quilon District, Kerala Minor Irrigation in Purulia District, West Bengal Sprinkler Irrigation in Semi arid Areas of Rajasthan A scheme of Dugwell Irrigation for Small Farmers in Amravati District, Maharashtra Marine Fisheries in Coastal Gujarat & Maharashtra Financing of Shallow Tubewells under Massive National Programme in Haryana Financing of Apple Orchards in Hill Districts, UP Work Animals & Animal Driven Carts in Meerut Dist UP Inland Fishery in Krishna District, Andhra Pradesh Bio-Gas Plants in Nainital and Rampur District, UP Impact of Non-farm Sector Investments Lift Irrigation Schemes in Maharashtra

1984 1985 1986 1986 1986 1987 1987 1987 1987 1987 1988 1988 1988 1988 1988 1988 1988 1989 1989 1989 1990 1991 1991 1991 1991 1994 1995

Note : Reports Nos. 5 was not published. Reports from 1 to 10 are now out of stock.

57

B. SI. No. 1 2 3 4 5 1 2 3 4 1 2 3 4 1 2 3 4 5 1 2 3

Reports published by Regional Offices of NABARD Title of Evaluation Reports Ahmedabad Poultry Development Scheme in Gujarat Dairy Development Scheme in Mehsana Dist, Gujarat Lift Irrigation Scheme of Ukai Left Bank Main canal, Gujarat Financing of tractors in Mehsana & Rajkot Dist., Gujarat Investments Financed under IRDP in Valsad Dist, Gujarat Bangalaore Development of Grape Gardents in Bangalore and Kolar Districts, Karnataka Borewell Financing in Chitradurga and Kolar District, Karnataka Development of Coffee Gardens in Karnataka State Sericulture Development in Karnataka - Farm Investments Bhopal Dugwell and Shallow Tubewell Irrigation in Narsinghpur District, Madhya Pradesh Tractor Financing in Raisen & Vidisha Dists, MP Commercial Layer Poultry Development in Indore District, Madhya Pradesh IRDP in Sagar District, Madhya Pradesh Bhubaneswar Betelvine Gardens in Puri District, Orissa Tractors in Sambalpur District, Orissa Dairy Development Scheme in Cuttack and Ganjam Districts, Orissa Brackish Water Prawn Culture in Puri District, Orissa Minor Irrigation in Sambalpur District, Orissa Calcutta Inland Fisheries Scheme in Nadia Dist., West Bengal Betelvine Gardens in Midnapore Dist., West Bengal Bullock & Bullock Carts in Malda Dist., West Bengal 1989 1990 1992 1993 1988 1989 1992 1994 1989 1989 1992 1994 1997 1987 1989 1991 Year of Publication 1988 1989 1991 1992 1994

58

1 2 3 1 2 3 4

Chandigarh Poultry Farming in Punjab Dairy Development Schemes in Karnal and Rohtak Districts, Haryana Tractors in Haryana Chennai Poultry Development in Salem District, Tamil Nadu Dugwell Irrigation in Pudukkottai and North Arcot Districts, Tamil Nadu Tea Gardens in Nilgiris District, Tamil Nadu Minor Irrigation Investments under Massive Assistance Programme in South Arcot and Tiruchirapalli Districts, Tamil Nadu Jasmine Investments in Salem and Madurai Districts, Tamil Nadu Mini Dairy Investments in Coimbatore and Periyar Districts, Tamil Nadu Marine Fisheries in Tamil Nadu Guwahati Private Shallow Tubewells and Lift Points in Assam Inland Fishery in WestTripura District, Tripura Hyderabad Public Tubewells in Khammam Dist, Andhra Pradesh Development of Grape Gardens in Ranga Reddy District, Andhra Pradesh Dugwell Irrigation in Chitoor District, Andhra pradesh Mango Orchards in Krishna and Khammam Districts, Andhra Pradesh Om Farm Development works under Nagarjunasagar project command in Khammam and Krishna Districts, Andhra Pradesh Inland fishery in West Godavari Dist, Andhra Pradesh Dairy Development in Krishna Dist, Andhra Pradesh

1987 1987 1994 1988 1989 1990 1991

5 6 7 1 2 1 2 3 4 5

1992 1994 1998 1989 1992 1988 1989 1989 1991 1995

6 7

1996 1999

59

Jaipur 1 2 3 4 5 6 7 1 2 1 2 3 4 5 6 7 8 1 2 3 4 1 2 3 4 Minor Irrigation Structures in Kherwara P.S., Udaipur District, Rajasthan Tractors in Alwar District, Rajasthan Market Yard in Kekri-Ajmer District, Rajasthan Borewell in Jodhpur District, Rajasthan IRDP in Alwar District, Rajasthan Poultry in Ajmer District, Rajasthan Sprinkler Irrigation Schemes in Barmer Dist, Rajasthan Jammu IRDP in Baramullah District, Jammu & Kashmir Tractors in Jammu District, Jammu & Kashmir Lucknow Minor Irrigation Scheme in Jhansi District, UP Tractors in Western Uttar Pradesh Inland Fishery in Azamgarh and Deoria Districts, UP NFS in Moradabad District, Uttar Pradesh Saghan Mini Dairy Project in Allahabad Dist, UP Mushroom Cultivation in Dehradun Dist, UP Grape in Muzaffarnagar District, Uttar Pradesh Minor Irrigaiton in Raebareli District, Uttar Pradesh Patna Shallow Tubewells in Darbhanga, Madhubani and Samastipur Districts, Bihar Deep Tubewells in Bihar Dairy Development Scheme in Begusarai and Singhbhum Districts, Bihar Minor Irrigation Schemes in Samastipur Dist, Bihar Pune Lift Irrigation Schemes in Ahmednagar Dist, Mah Well Irrigation in Aurangabad District, Maharashtra Poultry Development in Pune District, Maharashtra Grape Gardens in Nasik District, Maharashtra 1992 1995 1988 1992 1994 1995 1997 1997 1998 1998 1988 1989 1989 1996 1988 1991 1991 1993 1988 1991 1991 1993 1995 1995 1997

60

5 6 7 1 1 2 3 4 5

Land Dev. in Command Area of Kukkadi Project IRD Programme in Yavatmal District Far* Mechanisation in Ahmednagar Dist, Mah. Shimla Dairy Dev. in Mandi District, Himachal Pradesh Trivandurm Betwivine Gardens in Trivandrum District, Kerala Broiler Poultry Dev. in Ernakulam Dist, Kerala Development of Rubber Plantation in Kottayam District, Kerala Fisheries Development in Kollam District, Kerala Farm Mechanisation in Palakad and Ernakulam Districts, Kerala

1995 1997 1999 1997 1988 1990 1991 1992 1995

Copies of evaluation reports can be obtained from the Manager, Department of Economic Analysis and Research (DEAR), National Bank for Agriculture and Rural Development, C-24, Bandra-KurIa Complex, Bandra (E), Mumbai - 400 051.

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