SUBMITTED TO
M.Com.2nd
Roll No-5161
BATCH 2011
1
DECLARATION
And that no part of his information has been used for any other assignment
but for fulfillment of the requirement towards the completion of said course.
I also agree in principle not to share the vital information with any other
person outside the organization and that I have not submitted it before for any
award or any other title degree or diploma.
S.R.T.M..U Place.
2
ACKNOWLEDGEMENTC
KN
T I owe a great deal to SHREE SWAMI RAMANAND TEERTH MARATHWADA
UNIVERSITY OF NANDED for laying the building blocks of logic and
pragmatism in our life. This report, in a way is a reflection of these values. The
organizational traineeship segment (OTS) provided us with a unique
opportunity of working with an organization.
3
Executive Summary
On the basic of internal data study of the company it can be said that quality
4
Average price paid to farmers for this variety of grapes around Rs 35.00 Average
weight of bunch recorded is 225 gm and the brix content is around is18.00%Size
of the berry was 16.35 and the diseased produce received at the pack house is less
than 1%.
5
INDEX
Sr.no Chapters Page
no.
1 Chapter -I
1.1 Introduction 9
1.2 Adani Group Profile 11
1.3 Grapes 13
1.4 Market Scenario 14
1.5 Period of price fluctuation 14
6
1.6 Objectives of research 16
2 Chapter - II
2.1 Export Of Grapes 18
2.2 Export Specification 19
2.3 Export Specification Of Different 22
Country
3 Chapter III
3.1 Weight Of The Bunch 25
3.2 Average Size Of The Grapes 26
3.3 Average Brix Of The Grapes 27
3.4 Price Paid To The Farmer During The Season 28
4 Chapter IV
Chain of events in Grapes export
4.1. Residue Analysis 31
4.2. Harvesting 31
4.3 Knitting and Sorting/ Grading 31
4.4 Weighing and Packing 32
4.6 Palletization 33
5 Chapter V
6 Conclusion 41
7 Suggestions
8 Exports
9 Imports
7
10 Questioner
11 Preface
12 Hypothesis
8
CHAPTER – I
INTRODUCTION,
MARKET SCENARIO,
PRICE FLUCTUATION,
EXPORT SPECIFICATION
OF GRAPES.
9
1.1 INTRODUCTION
Today India is the second largest producer of the fruits (45.5 Million tons)
and Vegetables (90.8 Million tons ) in the world ,contributing 10.23%and
14.45%of the total world production of fruits and vegetables respectively .India
has made a fairly good progress on horticulture Map of world with total annual
production of The horticulture crops touching over 149 million tons India has
been bestowed with wide range of climate and physio-geographical conditions and
as such is most suitable for growing various kinds of horticultural crops such as
fruits, vegetables, flowers , nuts , spices and plantation crops.
With the focused attention given to horticulture, there has been spectacular
change in terms of adoption of new technologies, production and availability of
horticulture products. Fruits and vegetables constitute around 10 per cent of the
total agriculture production of the country. This sector offers enormous potential
for export.
10
to country’s average Of 12 MT. it grows commodities like grapes,
pomegranate, mango, sapota , oranges ,lime, strawberry, jackfruits etc in
large quantity .The state holds prestigious position in vegetable production
contributing 5% of the production and stands 7 in the country. Total
production of vegetables in Maharashtra is approximately 5 million tones.
Because of close proximity to Mumbai port and metropolitan market .the
state enjoys the comparative advantage in export as well as long distance
Highly perishable nature of his fruits and vegetable make their marketing
system more costly and complex. Timely and procurement of fruits and
vegetable in bulk is of immense importance for exporters. Transportation
plays an important role in fruits and vegetable marketing.
11
• Adani Group, founded in 1988, is one of the fastest growing business
houses in India.
• The Adani Group has its roots in its flagship company, Adani Enterprises
Ltd. (formerly known as Adani Exports Ltd.), which has been established by
Mr. Gautam S Adani in 1988 as a partnership firm with an initial capital of
Rs. 5 lacs.
FOCUS -
• Strong backward integration for product availability.
12
VISION -
• To provide safe, hygienic, and fresh quality fruits.
• Build strong network with farmers, right from their growing by assisting
them in technology.
ACHIEVEMENT-
• Started in 2006 by investing Rs. 200 crores to set up controlled atmospheric
pack houses in Shimla district at three different placed Viz. Rampur, Sainj
and Rohru.
1.3 Grapes
13
Maharashtra is a leading state in production of Grapes in whole country. In regards
to agriculture land under grapes cultivation & grapes production, Nasik & Sangli
districts are at forefront in the state. Apart from these ,grapes are also grown in the
districts of Ahmednagar, Pune , Satara , Solapur and Osmanabad. Now a days
grapes re produced in Latur district of Marathwada. However ,Nasik and Sangli
districts are ahead in the production of grapes in a scientific manner.
Figure
14
Area under grapes in Maharashtra is 35236 ha, out of which Nasik and Sangli
districts contribute 24174 ha and 8255 ha respectively. Maharashtra produces
around 988722 MT of grapes annually, in which Nasik and Sangli districts
contribution is 500406 MT and 231635 MT. Total export of Grapes from from
India is 26793.83 MT valuing 105.89 crores out of which nearly 80 % is exported
from Maharashtra. The Varieties grown in Maharashtra are Thompson seedless
,Tas-e-Ganesh , sharad seedless, Flame seedless and Sonaka.
Export of grapes from nasik stands at 7613.63 MT during 2003-04. Usually very
little quantity of export quality grapes comes to APMCs. Export grapes are Usually
Procured at the fare gate . Traders and exports go directly to farms 20-25 days
before harvest and they fix a procurement price based on the grade.
Low price : Nov to Dec with the average price around Rs.7 to 9/kg
In this market some variety always fetch good price . A general price for varieties
can be given below : (Make separate colomb indicating Export and local price)
15
Variety Price Rs/kg
Sonaka 25-30
Tas-e-Ganesh 10-15
Sharad seedless 25-35
Thompson seedless 15-20
Flame seedless 25-28
Sangli:
It is second largest grapes growing and exporting district in Maharastra.Export
quality grapes won’t come to here. So exporters and traders go directly to farmer’s
orchard. The important growing regions are Malegaon, Miraj, Nimni, Savlaj and
Tasgaon. Nearly 250-300 containers of grapes will be exported this year from
Sangli district alone. During last year (2007-08) the farm gate procurement price of
export quality grapes fluctuated with the time like this.
March15-30: Rs 50 / kg
Solapur Market :
Solapur is also very big market for grapes .Grapes arrival is from Solapur, Sangli,
and Baramati and from regions of Kolhapur surrounding Sangli. Distribution is
mainly to Bihar,Bengal,Orisa, and Southern Indian states. There are many Bihar
and Bengal traders operating in this market. In this market grape price depends on
variety of grape. The prices of some important varieties are given below. Nearly
16
80% of the production is Thompson seedless and 10-15% is Sharad and flame
seedless. Rest is from other varieties.
To study the quality assurance of grapes at the time of procurement at the pack
house
Sub objectives
Objectives 2
Sub objective:
1. To find out the price to the farmer with respect to the quality of grapes and the
time of procurement.
17
CHAPTER-II
EXPORT OF GRAPES
18
2.1 EXPORT OF GRAPES
Varieties in Demand:
Clone and Tash-e-Ganesh are also having demand to some extend in Dubai and
Middle East.*Thompson seedless constitutes nearly 95% of grapes export to
Eupore and UK.but for dubai and Middle East market ,along with Thompson
seedless ,Sharad seedless ,Sonaka,2-A clone and Tas-e –Ganesh are preferred.
19
2.2 EXPORT SPECIFICATION (HOLLAND)
20
Berries-General
7 Appearance with 10 % Free from dry stems and dirt.
tolerance
Tolerances in % refers to the amount of examined fruit ( not cluster ) out of a
representative quantity taken on an random basis out of the entire delivery
All Quality defects in the above mentioned, may not exceed 5 % provided that the
individual deviations are within their stipulated limits
Evenly coloured skin should be free from pest
damage or physical damage. No bruising, hail
8 Skin Blemish
marks, splits, cracks, open cuts or rots, sunburn,
sulphur bleaching
Stems and pedicles fresh and green, not dry and
9 Vine Condition
brown.
Bunch - shape typical of variety; not straggly or
10 Shape/Dimensions over tight;- round or slightly oval, not excessively
elongated.
Organoleptic
Sweet and refreshing flavour balanced by a hint of
11 Flavour
acidity.
12 Texture/Consistency Juicy, with tender skin and crisp, crunchy flesh.
13 Aroma None, free from any foreign odour
Physical
14 Sugar Content minimum - 16 degree Brix. Max 20 Brix
15 Sugar/Acid Ratio 18:1 minimum, Target 20 : 1
Minimum 15 mm, as Regular, Large 16- 18 mm,
Berry Size, printed on the
16 Extra Large 18-20 mm. XXL.20 mm and up. Target
Label
average16 - 18 mm.
Minimal dropped berries (shatter) in packaging:
17 Dropped Berries
tolerance up to 4 % by weight, Target zero.
9 Pouches of min 510 gms. ( by packing ) per 4.5
kg carton. Preference of 1 bunch
18 Pouch weight per bag, with a tolerance for 2 bunches of
even weight in 1 bag, No single bunch to weigh less
than 200gms.
19 Punnet weight 10 punnets of min 520 gms ( by packing) per 5 kg
carton. Max three bunches per
punnet with a minimum weight allowed to about
50gms for third bunch for adjustment of weight
21
purposes.
No insects, spiders or mites to be present in the
20 Insects, Spiders
product or packaging.
Additional All produce supplied to this specification must
21
Information have been grown in
compliance with the Apeda NRC document and
relevant GlobalGap
protocol.
22 Pesticide residues As per European MRL's limits of 1-9-2008.
The APEDA authorised Laboratory are ISO 17.025
certified pesticide
residue field tests report codes are traceable via the
packing list.
22
EXPORT SPECIFICATION OF DIFFERENT COUNTRY
23
CHAPTER-III
24
Three major quality parameters for export of the berries at
post harvesting are-
1. Size of the grapes
Thompson seedless contributed nearly 90%of the total exported the European
Union and UK while Shared Seedless was the major variety that was exported
to Middle East.
Ll. Quality of Thompson variety of seed with respect to the period of the
procurement is shown in the graphs below.
25
3.1 WEIGHT OF GRAPES
From the table it can be established that Thompson varieties of grapes are
generally available after the January end of from the period of the February. In the
start of the season the average bunch weight is less as the grapes do not get much
size and are harvested. Each berry of his variety weight around 4-6 gms and each
bunch has nearly 70-80 berries.
26
3.2 AVERAGE SIZE OF THE GRAPES
From the table 2.2 it can be established that the size of the produce is less in the
start of the season as compared to the mid and the end of the season. From the
below graph it is easily seen that the size of the fruit is height at end of the season
which implies a better quality according to UK and EU Standards
27
3.3 AVERAGE BRIX OF THE GRAPES
From the table 2.3 it can be clearly seen that there is not much variation in the brix
of the fruit during the whole season. Brix of the fruit also depend on the irrigation
of the field .if there is rain or the just irrigated then the average brix in the grapes
will increase and make it unsuitable for the grape export. More brix means more
sugar content in the grapes which increase its chance contamination during
transportation of grapes
28
3.4 PRICE PAID TO THE FARMER DURING THE
SEASON.
Observation: From the table 2.4 it can be seen that the farmer are getting the lower
price at the start of the season and price go high as the season comes to end. The
price of the grapes depends mostly on the size of the grapes the demand and supply
of grapes in the market.
Inference: it can be inferred from the table 2.4 that the size of produce is giving
better returns to the farmer at the end of season. It can also be inferred that in the
late season due to the constant demand and decreased supply from the domestic
market the price of grapes are going on the higher side.
29
Thus it can be seen that the quality norms are very stringht for the export to the
countries of European Union and UK. The processing cost for the exports to these
countries is very high and the risk of rejection is also very high so it is very risky
business to exports to these countries. It is very high best on the part of field fresh
that there procurement procedure is very good that the diseased material reaching
the pack house is always less than 1% which symbolizes good procurement
practices and good logistics operation at Field Fresh Foods.
Recommendations:
Company can also plan to supply the fruits to the local markets are also fetching
good prices in the metropolitan cities .Also the transportation cost and quality
requirements are less so the margins on the grapes will also increase and company
will also marks its local presence.
30
31
Chapter IV
CHAIN OF EVENTS IN GRAPES EXPORT
32
Sampling of grapes for residue analysis is usually done 10-20 days before
harvest .5 kg sample is taken randomly from each farm, in which 3 kg is crushed
for testing immediately and 2 kg sample is kept in cold storage foe 45 days till the
consignment reach destination without any hindrance. There are eight authorized
institutions throughout India that can conduct residue analysis test .The list of these
authorized residue testing institutions are given in the annexure. For this test,they
charge Rs.300/ sample for one pesticide and Rs 7500/ sample for all 87 chemicals.
APEDA will give 50% subisidy foe reside analysis. This year National
Horticulture Mission ( NHM) has given 100% subsidy for residue analysis test of
all horticultural produce. Residue analysis report will be given to farmers within 6-
8 days. The residue analysis test is done for 92 chemical.
4.2. Harvesting:
4.3 Knitting and Sorting/ Grading: Afterwards knitting of non uniform and
water berries is done followed by sorting and weighing as per importers
requirement.Usally Export specification will be as follows.
Grapes are usually packed in three types of Cardboard boxes for export
Each box will have to be packed with grape guard, tear off liner and bubble
sheets for Europe. For Middle East, each box has to be packed with paper
cuttings ,along with grape guard tape to hold two boxes.
33
punnets are imported from South Africa. And Itly From last one year UK
and European imports are demanding grapes in punnet packing only.
34
4.5 Pre cooling and Cold Storage : Pre –cooling is done at 0-9 C for 6-
8hours.Usually cold stored for 5-8 days depending on export suitability. For
storing the produce for 6-8 days , Rs 5 kg is charged.
4.6 Palletization: Wooden pellets are used to keep card boxes with in the
containers. Grapes are exported in 40 ft container. Each container can hold 20
pallets and carries 14.5 MT of grapes.
35
Following information is collected from Exporter for issue of PSC for
Grapes:
1. Application
4. Performa invoice
10.Exporters decalaration.
36
material strictly as per the sample provided by the importer’s
requirement.
4.8 Loading of container: Refer container usually comes from JNPT to the
farm gate. While loading the grape to container, Central excise officer will
inspect the commodity as per the purchase order and seal the container. Once
the container is sealed, it can not be opened by anybody till it reach its
destination.
37
4.9 Procedure of Shipment :
- Invoice
- Certificate of origin.
For agro exports, excise duty is not applicable. Customs Duty @ 1% with
respect to the cost of the invoice is charged while processing the documents.
38
4.10 Post Landing Cost: Post landing cost includes unloading, cold storage,
transportation, import duty and importers commission for the year 2008-09.
Country Rs/kg
UK 28.22
European Union 26.20
Dubai 12.06
Importers commission
- EU -8 %
Residue Analysis test in the importing country costs around 25000/ sample
This test is done only in UK and European country. If rejected the labour
charge and dumping costs should be paid by the exporter.
Mode of Payment:
Normally in the trade of agro exports (expect onion, rice and other cereals
mango pulp) importer never provides Letter of credit ( L/C ) Such export is
done on consignment basis ( payment as per actual sales ) Exports get the
payment after deducting port charge, transportation and commission etc .of
the importing country .In certain country export is undertaken on the fixed
rates. Market Credit of the importer should be checked before entering into
the trade. Importer’s credit can be checked by international credit
organizations like Dun and Bradstreet. Export Credit Guarantee Corporation
of India( E C G C) also undertakes such type of credit certification work .
Sales proceed gets deposited in the bank in foreign currency. Export
documents including Export Promotion ( E P ) copy should be retained by
exporter.
39
Remove this part it doesn’t match..
The grapes are generally exported 40 ft. container which can hold 20 pallets.
The grapes are generally exported in 40 ft. container which can hold 20 pallets.
The total capacity of 40 ft container is 14500 kg of Grapes.
40
Fumigation 400 400 400
AGMARK @ 0.2 % OF Invoice. 3000 3000 ----------
Post landing testing of grapes @ 25000 25000 ------------
25000/ Sample
Post landing charges 409287 380000 175000
Total cost 1487472 1458185 970861
Price realization at the destination 1754500 1667500 1087500
Market
Expected profit/ container. 267028 209315 98639
CHAPTER V
41
CONCLUSION
CONCLUSION
The advent of new varieties having high consumer preference and technical
advancement in cultivation has made this crop more popular.
42
Thomson seedless and sharad seedless variety is best suited for cultivation in
the tropical areas. This variety is one of the best varieties suitable for export
purpose and it is gaining popularity among consumers.
Most of the Grapess produced is consumed locally and about 1 per cent is
exported. The exports have not been substantial since the international
standards were not known.
Of late, Indian grapes have penetrated into the European Union since
suitable varieties conforming to international standards are being produced.
Karnataka has exported about 2000 MT to other countries during the last
few years. There is potential for export to the United State of America also.
Diseases such as Powdary mildew, Downy Mildew, etc., have created
problems in obtaining economic yields.
In this background, India can definitely make a dent in grapes trade in the
world market.
Remarks
Add,
43
Quality of grapes starts from field hence start process from
identification of field………………SOP.
44