BDK Engineering Industries Put LTD Hubli

BASAVEHWWARA
EXPORTERS OF PROCESSED FOOD & AGRO PRODUCTS

CONTENTS
Sr. DESCRIPTION
No.
1 Brief Introduction of the company and its Aims and
Objectives.
a) Introduction
b) Educating the farmers
c) Technology Transfer
d) To find Market Sources
e) Grapes, Pomegranate, lemon, exports
f) Dry Grapes Production & Marketing
g) Other Horticultural Produces
h) Apple Marketing
i) Cold Chain Facility to Local Farmers
j) Details of Plant & Machinery Erected
k) Refer Van
l) Packing Grading House
m) Sanitary Arrangements
2 The Concept of BAFPL Co.

3 Promoters & Directors
4 Background
5 Status of Indian Horticulture
6 The Area Under Horticulture & Horticultural Production in
the country from 2004-05 to 2006-07
7 Karnataka
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KARNATAKA UNIVERSITY DHARWAD
BASAVEHWWARA
8 Analysis of horticulture scenario of Karnataka
a) Opportunities
b) Threats
9 Production Scenario
10 Post Harvest Infrastructure and Management
11 Processing of Fruits & Vegetables
12 The Processing Sector is facing problems as listed below
13 Export of Fruits
14 Export of Vegetables
15 The Need
16 Objectives of the project
17 Application for subsidy under NHM Annexure – I
18
Performance of the U n i t for last fi ve years.
19
Flow chart for Utilization of Crates
20
Organization Chart
a) Existing Employment
b) Employment Creation through this project BAFPL - 1
BASAVESHWWARA AGRO FOOD PROCESSING LTD

BRIEF INTRODUCTION OF THE COMPANY AND ITS AIMS AND
OBJECTIVES
The company under the name and style of M/s Basaveshwwara Agro
Food Processing Limited is a registered public Limited company which is
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formed by the 330 farmer’s by contributing the shares and having its registered
office at Plot No. 33, KIADB Mahal Bagayat Industrial Area, Bijapur 586104. In
Bijapur and its peripheral districts there has been a consistent growth in the
production and growth of horticulture products and vegetables, there are no
facilities of Harvesting Equipments are available as compared to the nature and
quantum of production and the size of the market, giving ample scope for the
project and its expansion.
Considering the requirement of the market, viability of the project and the
growth of the horticulture produce in the region the company have installed set
up of 1) Pre cooling unit for export of fresh fruits & Vegetables 2) High Humidity
Cold Storage facilities for fresh fruits & vegetables and processed fruits such as
e.g. Grapes, Pomegranate, Tamarind, lemon, etc.
3) Dehydration unit consisting of Dry Grapes shed fumigation chamber etc.
Aims & Objectives of Company:
a) Introduction: The very inception of the BAFPL is in the vision to develop

the agrarian community of the area. The farmers of Bijapur district are the
share holders of the unit. The number of share holders are 330.The total
land of the shareholders is 5000 acres. The BAFPL's primary objective is
to extend time based techno economical information valuable to add the
profits. The farmers of the Bijapur district are assumed as beneficiaries of
the BAFPL. The Projects run by BAFPL will cater to approximately 25,000
hectors of land owners spread in the vicinity of the Bijapur, Bagalkot and
Bellary districts. The farmers are in need to get suitable and impact
making information on market, weather, transportation and post harvest
management schemes etc. The farmers are involved in all processes of
planning and training of the company. The BAFPL organizes the demand
oriented training programs.
b) Educating the Farmers: Company is conducting seminars on Training to

the Farmers for promoting Production of export quality Fruits like: Grapes,
Pomegranate, Banana, Lemon etc. quarterly from years together. In which
the scientists from International and National Research Centers for
Grapes, Pomegranate, Banana, etc. are giving the guidance to the
farmers, the farmers who are share holders of the company as well as
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more than two thousand farmers who are non share holder of the
company also taking the benefit of these seminar yearly.
c) Technology Transfer: Company is conducting seminars on latest

technologies which have to be adopted by farmers for growing their
crops and to promote the yield per acre and to reduce the production
cost by specialists, technical experts & manufacturers from years
together.
d) To Find Market Sources: Company is taking lot of efforts to find the

market sources to sale their products in international market. Company
had exported 30 containers of fruits & Vegetables in 2005-06, 50
Containers in 2006-07, and 20 Containers in 2007-08, and 20 Containers
in running financial year to the U.K., European union & Gulf. Which
affects farmers are getting good prices to their produce which causes up
gradation of living standard of the farmers.
e) Grapes, Pomegranate, Lemon Exports: The international market is

increasing potential of grapes, company has tie up with farmers who
produces the export quality grapes, pomegranate, Banana, lemon as
well as the buyers in the international market. The market demand to
supply is explained in separate tables.
f) Dry Grapes production & Marketing: The export quality grapes brought
to factory from farm. The export quality grape after exercising quality
check for size, colour, sugar, residue etc it is experience that out of the
total quantity received from farms approximately 20% grapes rejected.
The farmers are loosing revenue for the rejected grapes. The company
has decided a policy to purchases the rejected export grapes so as to
give max of to the farmers company by producing Dry Grapes.
Therefore company has set up of Dry Grapes (dehydrated grapes) Unit
along with Cold Storage and refer van. The rejected grapes out of
export is stored & taken to Dry Grapes production unit to produce the
Dry Grapes. The local farmers who are not producing the export quality
grapes also goes for making Dry Grapes as they get good Value Addition
to produces.
g) Other Horticulture Produces: The District Bijapur is known to be
Horticulture belt & the production of grapes, pomegranate, lemon,
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Banana, Chikku (Sapota), Papaya, and Tamarind etc, are in abundance.
Therefore processing of there produces will taken up in the existing
units.
h) Apple Marketing : The demand for Apple is through out the year.
Considering this company has decided to procure Apples from farms of
Himachal Pradesh & Kashmir by storing in existing cold rooms same will
be marketed locally.
i) Cold Chain: Facility to local famers : To commensurate with the Govt. of
India’s policy to make available cold chain to the farmers for value addition
to their products. The company has decided to made available the
balance potential of storage to the local farmers on nominal rent.
Based on the Aims & Objectives of the Company has purchased land in
KIADB i.e. Plot No. 33 KIADB Mahal Bagayat Industrial Area. Bijapur. The
company successfully completed the installation & errection of the plant
and Machinery on the above location.
J) Details of Plant & Machinery Erected:
Pre cooling Unit : For export of grapes pre cooling is important process
company & installed Two ultra Modern pre cooling units having capacity :
8MT/6hr.
1) Cold Storage: So as to Store the products i.e.

A) Export grapes after pre cooling,
B) Storing Dry Grapes.
C) Storing Horticultural Processed products.
The capacities of Cold installed are of before.
Size Temp Capacity
1) Cold Room No.1 25X35 00C onwards 100MT

Total Capacity 560 MT
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k) Refer Van: Company have purchased refer van for transportation of
products from farm to cold Storage to maintain the cold chain.
l) Packing Grading House :
The process of grading, sorting packing, etc, equires a hygienic area. The
company non erected 3500 Sq. Ft. (70X50) modernized pack house. The
features of pack house are as under :
 Conveyer belt
 Packing table
 Weighing Machines
 Insect catcher
 Coolers
 Shifting equipments
 Air Curtains
 Pallet Trucks
m) Sanitary Arrangements: The Company has constructed Gents & ladies

toilet block separate with Changing Room.
2) The concept of Basaveshwwara Agro Food processing Ltd Company:
Central Government has identified Pre harvest & post harvest management, food
and agro processing, agribusiness and agriculture marketing as thrust areas in
the coming years. The company has established pre cooling unit for export the
fresh grapes, pomegranate and other horticulture products. So as to provide
value additions to farmers, company has setup storage facility for processed
fruits such as Dry Grapes, tamarind etc. This along with an excellent response
received for the farmers.
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PROMOTERS AND DIRECTORS
Mr. Satish S. Hiregoudar is basically farmer from Dharwad District of Karnataka

and have taken education M Tech Engineering from IIT Mumbai. working in an
organization of international repute. He has overall experience for over 20 years.
He is rendering the marketing services to the company by establishing contacts
in the overseas market and negotiating and dealing with bulk consumer to who
products are required. He is also coordinating the over seas activities of the
company.
Mrs. Mangala Y Nakade she is basically farmer from Latur District of

Maharashtra and have taken the education in M Phil. and has taken her training
in the food processing industry and has a rich experience of over 15 years in the
field. She will be sharing her expertise in the major decisions like procurement of
machineries, financial structure and other strategically decision making
processes.
Mr. S S Wadkkar is basically a landlord and a farmer and having diversified

interests in the businesses of Govt. Regd. civil contractor finance etc, He has got
tremendous contact with the farmers in the locality and is looking after the
production and procurement of products and also us marketing the services
rendered by the company on job-to-job basis.
There are about 330 more farmers who are associated with the company as the
shareholders and amongst these farmers there are many landlords who cultivate
various products in which the company is dealing and intending to deal in future.
All the promoters and directors are well versed with the line of activity and nature
of the demand for such facility and so also the market. The promoters have set
up this unit with an intention to operate it for dual purposes namely to provided
facility on job work basis to various farmers to store their products and secondly
to use the said facility to store and hold the products on its own and export them.
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BASAVEHWWARA BAFPL - 6
Farmers : More than 330 No. of farmers are the members of the company to
take advantage of Cold storage to store their Fruits and Vegetables. They are
cultivating the Lemon, Pomegranate, Grape, mainly and they need Pre-cooling
and cold storage unit for value addition of their products with export of their
produce and it will support to collect the revenue.
Background : Bijapur District is a place of Horticulture Product like Grape,

Pomegranate, Lemon etc, which are grown fresh abundantly and has the climate
for making dry products too. Considering the Bijapur weather condition, the
taste of fruits and vegetables are of international quality and are suitable for
exports. Dry grapes are one of the major revenue earners for the districts and
this year it has 600 acres of Grape in an average 12 tons to 15 tones of yield per
acre.
Status of Indian Horticulture
Horticulture sector with 8.5 % of the cultivated area of agriculture contributes

28.5% of GDP of agriculture and 52% of export share of agriculture. India is 2nd in the
production of fruits & vegetable in the world. 1st in the production of banana, mango,
cashew, arecanut, papaya and 2nd in the production of lime, onion, brinjal, cabbage,
cauliflower, pea, tomato, okra and 3rd in potato, coconut.
The horticulture sector, with a wide variety of crops, which include fruits,
vegetables, root and tuber crops, mushroom, floriculture, medicinal and aromatic crops,
plantation crops like coconut, cashewnut, arecanut contribute over 28 per cent to
agricultural GDP with 8.5 per cent area under horticulture crops. The sector provides
diversification of agriculture owing to better land use, creation of employment
opportunities and overall nutritional security. Since growing of horticultural crops is
profitable, it is expected to grow and contribute to food and nutritional security.
Investment in horticulture has been rewarding in terms of increased production,
productivity and availability of large number of horticultural produce. India has emerged
as the second largest producer of fruits and vegetables and tops the list in the
production of mango, banana, cashewnut, coconut and many vegetables and spices.
There has been substantial increase in export of horticultural produce like cashewnut,
spices and the export of fruits, vegetables and flowers have also shown upward trend.
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However, productivity of large number of horticultural crops, continue to be low. Thus,
programmes of horticulture having thrust on improving production and productivity have
been taken up through appropriate intervention in a regionally differentiated manner.
Thrust is also given on infrastructural development especially for strengthening
marketing facilities and reduce post harvest losses.
Area (‘000 ha) Production (‘000 tonnes)
` 2004-05 2005-06 2006-07
Crop Area Production Area Production Area Production
Fruits 5049 50815 5514 58414 6126 68754
Vegetables 6744 101245 7164 109049 7137 111658
Flowers cut 118 20713 127 27651 142 32906
Cashew 820 544 843 580 NA NA
Spices 3150 4001 2858 5108 3056 5708
Coconut 1935 12832 1946 14811 NA NA
Source Horticulture Division, Department of Agriculture & Cooperation
The area under horticulture and horticultural production in the country from 2004-
05 to 2006-07:
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Production of major vegetables in India (2005-06)
POTATO
26.7%
PEAS TAPIOCA
2.1% 7.3%
ONION
8.5%
TOMATO
8.6%
OKRA
3.4%
CAULIFLOWER
4.8%
CABBAGE
5.4% OTHERS
BRINJAL 24.9%
8.4%
BAFPL - 8
Share of production of major fruits in India (2005-06)

APPLE
3.0%
OTHERS BANANA
16.9%
31.8%
SAPOTA
POMEGRANATE
1.9%
1.4%
PINEAPPLE
2.3%
PAPAYA
3.9%
CITRUS
10.8%
MANGO
GRAPES
21.3% GUAVA 2.8%
LITCHI 3.1%
0.6%
Although India is 2nd largest producer of fruits and vegetables in the world, its
share in global market is negligible. The quantity and value of horticulture produce
exported from the country during 2006-2007 is as under:
Quantity (MT) Value (Rs. in crores)
1. Fruits including walnut 664695 3983
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and cashewnut
2. Vegetable 2030753 2821
3. Flowers 19903 652
4. Spices 373750 3157
Total 3089102 10613
Karnataka
Karnataka State forms the South Western part of the Deccan Peninsula and lies
between 11.5o and 18.6o North latitude and 74.0o and 78.4o East longitude. It is the 8th
largest state in country having an area of 191.791 Sq. Kms (6.25% of India’s total area
of 3,065,027 Sq. Kms). BAFPL - 9
The State has a total population of 5.27 crores accounting for 5.13 percent of the
country’s total population of the 102.70 crores. The rate of growth of population in the
State has declined considerably from 21.12% in 1991 to 17.25% in 2001. Sixty percent
of the total population resides in rural areas, whose main occupation is Agriculture and
allied activities. Out of the total population, 44.6 percent is working population, of which
69.36 lakh are cultivators and 62.09 lakh are agriculture labourers. One important
feature, of agriculture labourers is that the percentage of women (58.19%) overrides the
percentage of men (41.81%). The literacy rate of the State is 67.04 percent, while in
rural areas it is 59.68% and that of urban areas it is 81.05 percent. The State has 27
districts, 176 taluks, 745 hoblies, 29,483 Villages (27,575 inhabited and 1908
uninhabited) and 5692 gram panchayats. As per the Agriculture Census of 2000-01, the
State has about 123.07 lakh hectares of cultivable area out of total geographical area of
190.50 lakh hectares, accounting for 64.60 percent. The total number of operational
holdings is 70.79 lakhs with 1.74 hectares, as average size operational holding,
cultivating only 34.4 percent of the total cultivable area. The average size of holding has
decreased from 1.95 hectares to 1.74 hectares. Out of the total cultivable area of 123.07
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lakh hectares, as per the statistics of 2001-02, the net cultivated area was 100.31 lakh
hectares and the gross cultivated area was 116.70 lakh hectares, indicating a cropping
intensity of 116 percent. Out of the gross cultivated area, the area under irrigation was
30.89 lakh hectares (26.5%).
The State receives normal annual rainfall of 1139 mm, mainly through southwest
monsoon (June to September – 806 mm) and Northeast monsoon (October to
December – 195 mm). The rainfall during post monsoon period, i. e. January – March is
about 14 mm and in pre-monsoon period, (April to May) it is 124 mm. Accordingly, the
state has three agricultural seasons – KHARIF (April to September), TABI (October to
December) and SUMMER (January to March).
Agriculture crops are cultivated in an area of about 107 lakh hectares annually.
Out of this, in Kharif season it is about 69 lakh hectares (64%), in Rabi season it is about
32 lakh hectares (30%) and the rest 6 lakh hectares (6%) come in summer season. Out
of gross cultivated area of agricultural crops an area of about 22 lakh hectares (20.5%)
comes under irrigation.
Karnataka occupies a prominent place in the Horticulture map of the country. The
Horticulture crops are grown in an area of 15.80 lakh Ha. with a total production of over
124.00 lakh tones at the end of VIII plan period. At present it is estimated that the
Horticultural crops occupy an area of 15.81 lakh ha. with an estimated production 95.81
lakh tones at the end of 2002-03. Although the area comprises only 14.44 percent of the
net cultivated area in the state, the total income generated from the horticulture sector
accounts to over 40 percent of the total income derived from the combined agriculture
sector. This accounts for 17 percent of the GDP of the state.
Horticulture provides excellent opportunities in raising the income of the farmers

even in the dry tracts. A significant shift towards horticulture is evident in the state with
an increase in area and production. For instance, about 58,000 ha. area has been
brought under horticulture crops through the watershed programmes. Horticulture
provides higher unit productivity ansd offers great scope for value addition and this
sector is taking inroads throughout the length and breadth of the state. Karnataka having
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the highest acreage under dry farming in the country next only to Rajasthan, has a great
potential to grow high value but less water demanding horticultural crops.
Karnataka is a progressive state in the field of modern horticulture in the country.

The diverse agro-ecological conditions prevailing in Karnataka has made it possible to
grow different types of horticultural crops such as fruits, vegetables, flowers, spices,
plantation crops root and tuber crops, medicinal and aromatic crops etc. Karnataka is the
3rd largest producer producer of fruits and stands 5th position in area and production of
vegetable crops. State stands 1st in area and 3rd in production of flower crops. It occupies
2nd and 3rd position with respect to area and production of plantation crops. Karnataka is
the largest producer of Spices, Aromatic and Medicinal crops.
Comparative advantage with respect to the diverse agro-climatic condition of the

state suitable for growing different types of fruits, vegetables, oil palm, plantation and
spice crops, medicinal, aromatic and flower crops.
Comparative advantage of the geographical location of the state ensures good

BAFPL - 11
prospects for marketing (export) of horticultural produce to other status of the country
and abroad. Availability of abundant waste and marginal lands that can be utilized for
cultivation of dry land horticulture crops. Availability of abundant land based resources
besides congenial agro-climate conditions has much scope for integrated development
of horticulture in the state. Farmers in the state are enterprising in venturing in to various
horticultural activities.
Economic liberalization policy of the Government has led to many multinational

companies involved in horticulture sector to establish in Kanataka. This is led to
exposure of the farmers to newer varieties of crops resulting in potential marketing
opportunities both domestic and export of high yielding crops such as flowers, hybrid
vegetables etc. The State has a wide network of both private and public sectors for
supply of seeds, fertilizers and other inputs. The setting up of international air cargo
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services and cold storage at the Bangalore Airport has resulted in the boosting of the
floriculture sector. Presence of upcoming processing and floriculture industries in the
state. Strong linkage between Agriculture Universities and developmental departments.
ANALYSIS OF HORTICULTURE SCENARIO OF KARNATAKA
 Week Extension Linkage in the Departments – although the Department

of Horticulture is one of the major Department in the state, the extension
personnel available at the grass root level is negligible. The extension
personnel available at taluk level in the Departments are 3-4 as compared
to 20-25 personnel with the other line Departments viz., Agriculture,
Animal Husbandry, Forest etc. No extension personnel are available
either at Mandal or village level. The results in inadequate technology
transfer.
 Upgradation of Technical knowledge – the technical advances in the field

of Horticulture is tremendous both with in and outside the country. The
Departments personnel are not properly exposed to these advances,
resulting in inadequate transfer of advanced technology. There is a need
for intensification of training programmer for farmers and extension
personnel.
 Area Expansion on unscientific basis leading to declined productivity and

fluctuation in market prices.
BAFPL - 12
 Inadequate infrastructure for marketing, handling, and processing of

horticultural produce.
 Inadequate air cargo and rail cargo facilities in the state.
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 Inadequate facilities for post harvest handling of horticultural produce
especially during glut seasons.
 Inadequate power supply in the state and exorbitant power tariff for the
floriculture and processing sectors as these enterprises are considered as
and industry.
 The irrigation resources in the state is smaller when compared with the
neighboring states.
 Regional imbalance in the development of horticulture within the state.
 Monocropping system of cultivation and hence increase in incidence of

disease and pests and production.
 Increase in prices of plant protection chemicals and fertilizers.
 Failure in market stability.
 Heavy Post Harvest losses.
 Lack of transparency in transactions and cash payment to farmers.
 Week infrastructure for Exports and IT Enabled Environment.
BAFPL - 13
Opportunities
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 Abundant land added with congenial agro climatic conditions for future
horticulture development through area expansion to achieve doubling of
present area as envisaged in the New State Agriculture Policy.
 Scope for development of Horticulture in the state owing to the increase

in demand for horticulture precuts including flowers, both in the domestic
and international markets.
 Production of hybrid vegetables and fruits to gear up production to meet

the national per capita recommendation of fruits and vegetables as
protective and nutritious foods.
 Scope for establishment of processing and post harvesting units in and

around production centres to prevent the losses that occure to the tune of
around Rs. 1,500 crores annually.
 Scope for introduction of different cropping systems to overcome endemic

problems and regional cropping imbalances.
 Scope for extensions of area under drip irrigation for horticultural crops.
 Opportunities for conversion of waste lands into productive lands through

dry.
 Land horticulture.
 Scope for generating large surpluses of horticulture crops for the export
market.
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 Horticulture based exports have potential to become one of our major
foreign exchange earners.
 Scope for developing value addition to horticulture like organically grown

vegetables and fruits, cleaned and graded products, processed products
ready to serve horticulture food products, spice encapsulation, oleoresins,
dry flowers, potpourris etc.
 Potentiality to develop protected cultivation of flowers and flowers and

vegetables like green house cultivation along with other necessary inputs.
 Scope for the horticulture sector to spearhead the economic development

of the state.
Threats
 Fragmentation of land holdings.
 Presence of middlemen and pre-harvest contractors at the time of

marketing.
 Charging of Commission on certain horticulture produce is exorbitant.
 Low level of grower share in consumer rupee.
 Monopoly of APMC Markets and Persistence of License raj.
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PRODUCTION SCENARIO
Area (In lakh ha Production (In lakh tons))
Crops 1998-99 1999-00 2000-01 2001-02 2002-03
Fruit crops
Area 3.15 3.13 2.61 2.57 2.55
Production 48.27 46.41 41.65 40.29 40.39
Plantation and
Spice crops
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Area 8.64 8.97 8.71 9.26 9.40
Production 12.46 12.25 8.31 8.04 8.94
Vegetable Crops
Area 2.59 3.29 3.77 3.83 3.67
Production 52.56 43.11 66.54 48.90 44.94
Flower Crops
BAFPL - 16
Area 0.21 0.21 0.21 0.18 0.18
Production 1.24 1.32 1.57 1.42 1.47
Total Area 17.18 15.6 15.30 15.85 15.81
Production 128.07 103.09 118.20 98.76 95.81
Post harvest infrastructure and Management
Karnataka is one of the Horticulturally progressive States in India. Due to its ideal
Agro-climatic conditions and enterprising farming community almost all types of
horticulture produces are produced in Karnataka. As per statistics of 2002-03 the area
under horticulture crops was 15.81 lakh hectares with an annual production of 95.81 lakh
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tons. Out of this 41% of area and 87% of total production accounts for fruits and
vegetables.
Since, fruits and vegetables are highly perishable, efficient Post Harvest
Management has become an absolute necessity. It is also important for effective
exploitation of export potential of fruits and vegetables.
In Karnataka, only 1% of the total production of fruits and vegetables are

processed into different products. About 25-30% of the produce is lost due to improper
Post Harvest Management. To avoid the Post Harvest Management Losses a chain of
cold storages, processing and marketing facilities need to be created. Among Post
Harvest Management practices like pre cooling, cold storages and refrigerated transport
are most important.
At present there are 54 cold storage units spread over 11 districts with a total
storage capacity of 91,830 MT, for handling fruits and vegetables. Of these units, 11 are
in the co-operative sector (9190MT), 41 are in the private sector (82,380 MT)BAFPL
and two- 17
are in the public sector (260 MT). The fruits and vegetables that are readily stored are
Potato, Grapes, Tamarind, Citrus, Pomegranate, Pineapple, Chilli, Apple and cut flowers.
Processing of Fruits and Vegetables
Government of Karnataka is considering fruit and vegetable processing sector as

a thrust area for development. With growing urbanization and increasing quality
consciousness, the market for processed fruit and vegetable is expected to grow rapidly.
Therefore, there is enormous potential for developing agro products.
At present there are 1533 licensed processing units in the state with
annual production of 2.00 lakh tons of processed products. The processed fruits are
Mango, Grapes, Pineapple, Papaya, Guava and others. The major vegetables
processed are Tomato, Potato, peas, Gherkins and others.
The processing sector is facing the problems as listed below :-
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The fruit and vegetable processing industry is extremely decentralized, as
number of processing units are in the cottage and small scale sectors.There is no
continuous availability of raw materials throughout the year and due to varied agro-
climate conditions the availability of raw materials is concentrated in particular areas.
Funds most of the products produced are consumed afresh at market level.
Inconvenience in marketing, transport and communication facilities are other
factors which make the processing sector uncompetitive.Food industry is regarded as
relatively small and less attractive because of high investment and less profit initially.The
tax levels on the processed foods are very high.The financial institutions/Banks consider
processing sector as high risk. Hence, this sector is capital starved.There is a gap
between research and extension. Many of the commercial processing units are having
their own research activities in food industry which remain confined to their own vicinity.
EXPORT OF FRUITS
The main fruits that enter the export market are mangoes, grapes, pomegranate,
apples, citrus but other fruits identified for export are bananas, Chikku(Sapota),
litchis etc, the total exports are about 50 thousands tons valued at Rs.600 million.
The main destinations being Middle East. U.K. Europe and to some extent
Singapore, Malaysia etc, by the end of century it is targeted to increases the
export to 355 thousand tone valued at Rs. 6,940 million.
Many nut crops like walnuts, pistachio, coconuts are also grown. Cashew nuts
are commercially grown and has found a prime place in the international market.
BAFPL - 18
EXPORT OF VEGETABLES
The important vegetables exported are potatoes (28.0%) onions (7.1%)

cauliflower and Cabbage (4.0% each), okara (3.0%) peas (3.0%). Other
(50.0%). The total quantity exported is about 400 thousands tones valued at Rs.
2,200 million. The exports are limited to Middle East, Europe. U.K. and
Singapore etc.
New Technique in the Exports
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BASAVEHWWARA
With the commercialization of reefer containers in India the exports of mangoes,
grapes, processed mushroom etc. have started going to U.K. , Europe. Middle
East, Singapore, Hong Kong , etc. This mode of transport is very cost effective
as there is a saving of about 50% on freight when compared to air. In a small
refrigerated trucks are also available for domestic transport.
THE NEED:
India is the second largest producer of fruits in the world, producing 46.8
million tones of fruits and accounting for 10% of world’s market. Its also the
second largest produce of vegetables and accounting 14% of world’s production.
Approximately 20 to 25% of the horticulture products goes higher production cost
due to improper guidance for forecasting the weather for cultivation &
approximately 30% of the horticultural product goes waste due to improper Pre
and post harvest management.
Karnataka is a key agricultural and horticulture State accounting for 6-7%

of all production in the country today. The state leads in the production of a
number of crops including several fruits, vegetables, sugar, cotton, pulses etc.
Agriculture is a major source of income for rural masses constituting 6-70% of
the State’s population. It is a major contributor to State’s economy at around
25% of the GDP. State’s farmers have been quite successful and they have
been consistently producing large quantities of marketable surplus. So far
agriculture has been an economically viable activity in the State, However, in
recent days there has been an economically viable activity in the State, However
in recent days there has been a disturbing trend with stagnation in prices for
farm produce, high levels of post of Karnataka, like in rest of the country have
very few options but to improve their production cost & pre harvest and post
harvest management practices so that the present high levels of production cost
& pre harvest and post harvest losses at 25-30% could be brought down to a
reasonable level of 5% or so. And secondly they have to add value through
processing to their farm produce for better remunerative prices. These steps can
lead to better returns with increased market demand for agricultural produce and
22
BAFPL - 19
BASAVEHWWARA
better chances of marketing. The company has established pre cooling unit for
Export the fresh fruits & Vegetables. So as to provide Value additions to farmers,
company has setup storage facility for processed fruits such as Dry Grapes,
tamarind, apple etc
OBJECTIVES OF THE PROJECT:
The followings are the objectives of providing the harvesting equipments (crates)
1. Are mainly used for the safety transportation of the fruits to prevent the
damages like physical injury.
2. Are mainly used to prevent damages like Brushing, Cracking and Softening.
3. Are mainly used for trimming and grading as per the quality norms.
4. Are mainly used for weighing before packing.
5. Are mainly used for uniform pre-cooling of fruit.
6. Are mainly used for transportation from field to cold storage to avoid the
losses due to raise in temperature when packed in corrugated boxes.
7. Also apart from export, the long distance domestic markets can be
reached for better price.
8. By using crates we can prevent the losses up to 35%.

9. As crates are re-usable, we can minimize the packing material expenses.
23
BAFPL - 20
BASAVEHWWARA
ANNEXURE - I
APPLICATION FORM TO AVAIL SUBSIDY UNDER NATIONAL

HORTICULTURE MISSION”
1) Name & address : Basaveshwwara Agro Food Processing Ltd

Plot No. 33, KIADB, Mahal Bagayat,
Industrial Area, Bijapur-586104.
2) Telephone No.s. : (08352)220331 / 221010 Fax (08352)

222428
3) E-mail Address : bafpl.india@gmail.com and

bafpl.bharat@gmail.com
4) Unit location along with area : Plot No. 33, KIADB, Mahal
bagayat
Industrial Area Bijapur for
(Cold storage).
5) Does the area comes under AEZ : No
6) Date of establishment of : CIN No. 08 Date : 09-03-2001

incorporated
The unit with registration No. : under Indian companies Act
1956.
7) Horticulture produce stored/ : Fresh Fruits & Vegetables

Processed/packed in the unit
8) Source of raw materials : From 330 Grape Growers whose

are
Share holders of the company.
9) Per month production capacity : 600 M.T.
BAFPL - 21
10)Total likely production in month : 450 M.T.
@ 75% utilization
11) Registration under FPO : Under process.
24
BASAVEHWWARA
12)Name of the Bank from where : Company has already availed
Term Loan of Rs.------- from BANK of India for the infrastructure so far
created . The gap in means of finance for crates will be Contribution by
330 farmers
Loan was sanctioned (share holders)
13) Whether subsidy availed under : No

any other Govt. of India/State
Govt. Scheme.
Recommendation of the inspecting authority.

Signature of the concerned
Signature of the inspecting

Authority
Date :
Place :
BASAVESHWWARA AGRO FOOD PROCESSING LTD

ORGANISATION CHART
I) Board of Directors
II) Managing Director
III) Chief Executive Officer.
a) Production Manager 1 No.
1) Under production manager 5 Nos. field officers.
2) Under each field officer 10 Nos. Assistant Field Officers.
3) Under each Assistant field officers 10 Nos. workers for Harvesting and
other work.
4) 4 Nos. drivers.
b) Office Establishment manager 1 No.
1) Under manager 1 No. Accountant, 2 NOs. Clearks, 2 Nos Office Boys.
c) Cold Storage Technical head 1 No. electrician, 3 Nos. operators, 10
Nos. labours
Existing Employment :
1) Chief Executive Officer-1

2) Production Manager-1
3) Field officers-5
25
BASAVEHWWARA
4) Assistant Field Officers-50
5) Worker-500
6) Driver-4.
7) Office Establishment manager-1
8) Accountant-1
9) Clearks-2
10) Office boys-2
11) Cold Storage Technical head-1
12) Electrition-1
13) Operators-3
14) Handling Workers-10
Total Employment Creation -582 + Buffer Staff 18 = 600 BAFPL - 26
Employment creation through this project
a) Skilled Quality Controllers

=
50Supervisors
= 50Unskilled
Harvesting Labours
= 1320 Drivers (for Transportation
vehicle) = 80
Total = 1500
0 Note: The investment in this project
will be recovered within two years as
calculated above. By considering the life of
crates up to five years the remaining three
years saving of the fruit cost of amount Rs.
2,97,00,000 will be the benefit to the farmers
& government. Hence, the project is
economically viable which will give the 300%
returns on capital investment.
Home / Schemes
26
BASAVEHWWARA
COLD STORAGE SUBSIDY SCHEME
BY
THE MAHARASHTRA STATE AGRICULTURAL MARKETING BOARD, PUNE
Maharashtra State is the major producer of the fruit and vegetables in the country. With the effective implementation the EG
scheme the cultivated land under horticulture crops in the State increased by almost 500 %. The present level of production
horticultural produce in the State is expected to go up by 100 % within a very short period of next 2-3 years. It is estimated
that as much as 30 - 35 % of fruit and vegetable production is lost on account of lack of adequate post harvest infrastructure
Agricultural produce of the farmers do not get remunerative prices due to lack of grading , proper packaging and in turn ther
is huge post harvest losses. In future establishment of Cold Chain in the State has a prime importance for fetching good price
for agril. produce in the International markets.
The perishable agril produce will get storage facility if cold storages are established by Agricultural Produce Market
Committees (APMCs) and Co-operative societies functioning in the various regions of the State. This will not only reduce glut
in the market and avoid price fluctuation but it also increase the shelf life and quality of agril produce. Thus in turn the
producer would get remunerative prices for their produce.
Keeping this view in mind the MSAMB has launched "Cold Storage subsidy scheme" from 1st of August 2004 in the State.
The scheme details as follows.
A. PATTERN OF ASSISTANCE -
 Subsidy @ 25 % of the total project cost with maximum limit of Rs 2.5 lakhs per project.
 - The beneficiary will be eligible for getting subsidy from other financial institutions /agencies.
 - The beneficiary can get subsidy for more than one cold storage.
B. FEATURES OF THE SCHEME -
 Subsidy is available for capacity up to 100 MT cold storage.
 The per MT cost of the project is considered @ Rs 10000/- per MT.
 The per MT subsidy rate is considered @ Rs 2500 /- per MT.
 In-principle approval from MSAMB for the project is necessary.
 The Detail Project Report (DPR) of the cold storage must be of the MSAMB
 - The plan and estimates of the project should be according to the norms finalized by the MSAMB
C. IMPLEMENTATION -
 1St August 2004 onwards 27

BASAVEHWWARA
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BASAVEHWWARA

EXPORTERS OF PROCESSED FOOD & AGRO PRODUCTS

b) Educating the farmers

d) To find Market Sources

e) Grapes, Pomegranate, lemon, exports

f) Dry Grapes Production & Marketing

g) Other Horticultural Produces

i) Cold Chain Facility to Local Farmers

j) Details of Plant & Machinery Erected

l) Packing Grading House

2 The Concept of BAFPL Co.

b) Employment Creation through this project BAFPL - 1

BASAVESHWWARA AGRO FOOD PROCESSING LTD

3) Dehydration unit consisting of Dry Grapes shed fumigation chamber etc.

Aims & Objectives of Company:

a) Introduction: The very inception of the BAFPL is in the vision to develop

b) Educating the Farmers: Company is conducting seminars on Training to

c) Technology Transfer: Company is conducting seminars on latest

d) To Find Market Sources: Company is taking lot of efforts to find the

e) Grapes, Pomegranate, Lemon Exports: The international market is

J) Details of Plant & Machinery Erected:

1) Cold Storage: So as to Store the products i.e.

Size Temp Capacity

1) Cold Room No.1 25X35 00C onwards 100MT

Total Capacity 560 MT

l) Packing Grading House :

m) Sanitary Arrangements: The Company has constructed Gents & ladies

2) The concept of Basaveshwwara Agro Food processing Ltd Company:

Mr. Satish S. Hiregoudar is basically farmer from Dharwad District of Karnataka

Mrs. Mangala Y Nakade she is basically farmer from Latur District of

Mr. S S Wadkkar is basically a landlord and a farmer and having diversified

Background : Bijapur District is a place of Horticulture Product like Grape,

Status of Indian Horticulture

Horticulture sector with 8.5 % of the cultivated area of agriculture contributes

Area (‘000 ha) Production (‘000 tonnes)

` 2004-05 2005-06 2006-07

Crop Area Production Area Production Area Production

Fruits 5049 50815 5514 58414 6126 68754

Vegetables 6744 101245 7164 109049 7137 111658

Flowers cut 118 20713 127 27651 142 32906

Cashew 820 544 843 580 NA NA

Spices 3150 4001 2858 5108 3056 5708

Coconut 1935 12832 1946 14811 NA NA

Source Horticulture Division, Department of Agriculture & Cooperation

Share of production of major fruits in India (2005-06)

Quantity (MT) Value (Rs. in crores)

1. Fruits including walnut 664695 3983

2. Vegetable 2030753 2821

3. Flowers 19903 652

4. Spices 373750 3157

Total 3089102 10613

Horticulture provides excellent opportunities in raising the income of the farmers

Karnataka is a progressive state in the field of modern horticulture in the country.

Comparative advantage with respect to the diverse agro-climatic condition of the

Comparative advantage of the geographical location of the state ensures good

Economic liberalization policy of the Government has led to many multinational

ANALYSIS OF HORTICULTURE SCENARIO OF KARNATAKA

 Week Extension Linkage in the Departments – although the Department

 Upgradation of Technical knowledge – the technical advances in the field

 Area Expansion on unscientific basis leading to declined productivity and

 Inadequate infrastructure for marketing, handling, and processing of

 Inadequate air cargo and rail cargo facilities in the state.

 Regional imbalance in the development of horticulture within the state.