The Production, Sourcing,

Supply and Distribution of

Fruit & Vegetables for
Urban Clusters in India

The Production and

Supply Chain
Management from
Production Clusters
to Urban Centre
By Green Tech Agri
Sector Pvt.Ltd.
Rajender Thakur
Urbanisation in world-2025

2
Metros and cities on Indian map
&Scope of organised F&V in India
Aspect Curren Expect Overal
s t size ed l
(2008- size in increa
09) 2020 se(%)

Retail Rs. Rs. 206

17,497 53,517
billion billion
Food Rs. Rs. 206
retail 10,673 32,696
billion billion
Organis Rs. 150 Rs. 620 313
ed food billion billion
retail

3
Indias top cities-leading in
consumer awareness,income and
spending
Rank Towns States Per-
Capita
Income
1 Chandigarh Chandigar 26, 710
h (UT)
2 Panaji Goa 26,075
3 Delhi Delhi 24, 141
4 Valparai Tamilnadu 23, 772
5 Greater Maharasht 23, 109
Mumbai ra
6 Pune Maharasht 22, 817
ra
7 Ludhiana Punjab 22, 178
8 Chennai Tamilnadu 21, 885
9 Shimla Himachal 21, 348
Pradesh
10 Jalandhar Punjab 21, 254
4
Consumer expenditure and growth
on food items in India

5
Scope of organised F&V in India
Aspects) Current size Expected size Overall
(2008-09 in 2020 increase(%)

Retail Rs. 17,497 Rs. 53,517 206

billion billion

Food retail Rs. 10,673 Rs. 32,696 206

billion billion

Organised food Rs. 150 billion Rs. 620 billion 313

retail

6
Premium F&V Production
Scenario
Wide range of agro climatic zones
and skills for growing different fruits
and vegetables under both open and
protected cultivation.

Second largest producer of

fresh fruits and vegetables, but
productivity is not at par with
global norms.
7
8
9
 F&V PRODUCTION
221 MMT
146MMT 75MMT

Potato
Potato Okra
Okra Banana Mango
Mango
Tomato
Tomato Brinjal Papaya Guava
Guava
Brinjal
Cauliflower
Cauliflower Pineapple Grapes
Grapes
Beans
Beans
Cabbage
Cabbage Lime Apple
Apple
Onion Gourds
Gourds Lemon Litchi
Onion Litchi
Peas
Peas Leafy
Leafy Mosambi Orange
Orange
Cucumber
Cucumber Ginger
Ginger Sapota Pome
Pome
Garlic
Garlic Tubers
Tubers Coconut granate
granate

10
11
Market Arrival of F &V and
average prices-2012
Commodity Market arrival in Average
tons Price/ton

Bhindi 351588.82 19330

Bottle gourd 239465.70 8060

Brinjal 769732.95 11030

Cabbage 610880.49 10020

Capsicum 96102.47 24670
Carrot 313044.07 19000
Cauliflower 775179.17 14160
Cucumber 363816.82 11050
Drumstick 325920.36 28170
French Beans 28115.78 27240
Green Peas 108179.81 30590
Mushrooms 468.19 108460
Onion 8345819.46 8050
Exotics 84958.17 13500
Potato 7301810.00 9420
Pumpkin 303267.77 8100
Raddish 141579.04 6210
Spinach 39488.15 6400
Sweet Potato 50848.75 10370
Tomato 2582619.74 11790

12
Export of Horticultural Produce
from India

13
Consumption of Fruits and
Vegetables in India

14
Premium F&V products in India
A. Quality produce from
precision
farming/protected
cultivation such as
greenhouse,nethouse and
hydroponics .
B. Fresh Organic Fruits and
Vegetables.
C. Fresh off season fruits and
vegetables from open
cultivation.
D. Fresh exotic fruits and
vegetables.
E. Processed and Frozen
vegetables.
F. Mushrooms fresh and
canned.
G. Processed natural
juices,jams,sauces and 15
Focus-F&V crops
FRUITS VEGETABLES

16
Export-Fruits and
Vegetables
VEGETABLES FRUITS

17
Major Greenhouse Production
Countries
COUNTRY AREA (ha) SOURCE
China 27,60,000 Yang, 2011
(2010)
Korea 57,444 Lee, 2011
(2009)
Spain 52,170 Euro Stat,
2010
Japan 49,049 MAFF, 2011
Italy 26,500 Euro Stat,
2010
Mexico 11,759 SAGARPA,
2010
Netherlan 89600 Euro Stat 2011
ds
France 9,620 Euro Stat,
2005
18
Growth under greenhouse
cultivation in India & major areas

Year Area in Major states-Maharashtra,

hectares Karnataka, Tamil Nadu,
2005-06 451.82 Andhra Pradesh, Gujarat,
2006-07 1440.47 Himachal Pradesh,
2007-08 4796.55 Uttrakhand, Punjab and
2008-09 7086.81 Haryana has already made
2009-10 6634.74 notable headway.
2010-11 5536.47 Rajasthan, Orissa and some
2011-12 22528.25 northeastern states are also
coming forward. As a result,
the total area under
protected cultivation is
estimated to have
expanded in the past one
decade to nearly 30,000
hectares.

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Production and productivity-
open,greenhouse & hydroponics
Sr. Name of Crop Production(Tons/Ha)
No.
Open Greenhouse Hydroponics
1 Tomato 30-50 60-100 150-250
2 Cherry Tomato 15-20 30-40 75-100
3 Green Capsicum 20-30 40-60 100-150
4 Colored capsicum 12-20 25-40 60-100
5 Green Chilly 8-12 15-25 40-60
6 Cucumber 40-60 80-120 150-180
7 Iceberg Lettuce 20-25 40-50 200-250
8 Coriander 15-20 30-40 150-200
9 French Bean 10-15 20-25 50-60
10 Squash 25-30 50-60 100-150
11 Chinese Cabbage 15-20 30-40 50-100
12 Spinach 15-20 30-40 150-200
13 Celery 20-30 40-60 100-150
14 Parsely 10-15 20-25 100-125
15 Straw berry 5-6 10-12 25-30

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Retailing-Traditional model

21
Retailing-Organised model

22
Value Chain Model

23
Strengths & Weakness of
Premium F&V Produce in India
STRENGTH
Wide variety of fruits and
vegetables can be grown .
Very less consumption of
chemicals as compared to
developed nations.
Organic pockets existing in
different parts of the country.
Differentiation can be easily
created.
Farmersas well as
Government interests are
rising in organic and off
season F&V production
Various niches in fruits &
vegetables can be created.
Indian corporate are investing
in agribusiness .
WEAKNESS
Lack of farmer awareness about
agricultural practices,products
and technologies for organic
and precision farming.
Price competitiveness.
Lack of market information and
intelligence.
Inadequate PHM and related
infrastructure to support
organic production.
Lack of R&D base in organic
and precision production .
Unavailability of quality inputs.
Certification and labeling.
No access to international
market.
24
Opportunities of Premium F&V

Organic Produce
Favorable government vision.
WTOoffering global opportunities.
Price premiums in different markets.
Export opportunities in new product/market.
USA, Europe and Japan are rising markets.
Brandingoffers new opportunities for
differentiation.
Rising demand for organic products.
Big retail stores/chains opening up.
New developments inpost harvest technologies.
New products, production, PHM technologies .
Private sector keen to joinpremium F &V value
chain.
25
Solutions
Productivity Precision farming through cluster approach
by adopting greenhouse and hydroponics
cultivation.
Quality improvement Quality inputs, organic farming, good
agricultural practices and management.
Post Harvest Establishing collection and processing centers
Management in each growing clusters because premium
crops are climacteric in nature and are highly
sensitive to change in temperature they need
proper cold storage chain till point of sales to
the end consumer.
Packaging Innovative and attractive customized packing
so that material is safe during transportation.
Transportation Refrigerated vans.
Storage Cold storage near production areas.
Marketing Direct marketing to customers, aggregators,
hotels and establishments.

26
F&V-Demand
Total vegetable volume sales exceeded 90 million tones in 2011. Of the
total volume, 86% of sales were to consumers and the remaining 14% to
establishments such as restaurants and canteens or institutions such as
hospitals and schools.
Aggregators , retail chains, RWAs and ULBs and health authorities want
assured supplies from identified production clusters.
Green Tech will initiate organic production of fruits and vegetables under its
own brand in all major cities having population more than 1 millions.
Establishment of post harvest management and marketing infrastructure.
Demand-driven exotic vegetables production is suitable for the farmers as
they have assured market through contract with consumers.
Exotic vegetables market is growing at the rate of 15 to 20% per annum is
increasing day by day since India is importing more than 85% exotic
vegetables.
The annual demand for mushrooms that was around 5,000 tons in 2001 in
the country has doubled to 10,000 tons in 2004 and the demand is expected
to grow at a good pace of 25% every year for many years to come.

27
F&V-Supply
Production and productivity of crops and profitability of farmers can
be enhanced by encouraging 'off-season' production under precision
farming systems such as protected cultivation in green houses, shade
net houses. etc for generating income round the year.
Presently the area under vegetable production under protected
conditions is 30000 ha., while the national potential is ten lakh ha.
Green Tech Agri Sector Pvt. Ltd. will establish its own hydroponics
farms(5-25 acres) in and around major urban clusters to produce year
round fresh organic capsicum, tomato, cucurbits,english vegetables,
strawberry and a wide range of horticultural crops.
Organizing farmers clusters to overcome issues of fragmented land
holdings.
Credit facility to farmers to meet operational expenses.
Adoption of precision farming technologies.
Supply of Quality planting material, seeds, INM & IPM.
Good Agriculture Practices.

28
Scope of Premium F&V
The Premium Fruit and Vegetable Initiative is proposed to cover
Peri urban areas around all State Capitals or other cities with more
than 10 lakh population. Total 40 Cities to be covered during 2013-
18.
India had a large and growing population of over a billion people of
whom, around 300million were categorized as middle class
consumers who had significant purchasing power. The country also
offered a relatively young market with 54 percent of the population
below 25 years of age.
The McKinsey Global Institute, a think tank, estimated Indias retail
market would be worth $1.52 trillion by 2025, up from $370 billion
in 2005. McKinsey estimated the food-and-beverage category
would still account for 25 percent of all retail spending in 20years.
With the introduction of new food chains like McDonald's, Mainland
china, California Pizza, Pizza Hut etc,the people in India are now
developing new test buds to accept new food items. Preparation of
these food items need many exotic vegetables like Baby corn, Red
cabbage, Broccoli, Colored bell pepper, lettuce, mushroom,
Asparagus ,Olives etc some of which are imported from other
countries.Due to huge supply chain, more demand and less supply 29
Market of F&V produce
The market for organic food products in India is growing at 20-22 per
cent a year. With rising spending power of the growing middle class in
the country and increased awareness towards chemical free food,
organic and natural products sector will grow significantly in the
coming years.

Indian market for organic food including exports is currently valued at

Rs. 10 billions.

The country produced around 3.88 million tons of certified organic

products that include basmati, pulses, tea, coffee, spices and oilseeds.

Organic foods industry presently is metro-based, with about 95 per

cent of the brands existing in top 10 metros like Delhi (NCR), Kolkata,
Mumbai, Pune, Chennai, Bangalore and other tier II cities.

The states doing well in organic farming are Madhya Pradesh (440,000
hectares), Maharashtra (150,000 hectares) and Orissa (95,000
hectare).
30
Objectives
To address all concerns related to both the demand and supply
side of the premium fruit and vegetable sector in selected cities.
To enhance vegetable production and productivity, improve
nutritional security and income support to vegetable farmers.
To establish an efficient supply chain thereby leading to
employment opportunities and incomes for intermediate service
providers, and safe, good quality, fresh as well as processed agri
produce at competitive price for urban consumers.
To promote, developing and disseminating technologies for
enhancing production and productivity of vegetables in peri-
urban areas of major cities.
To address the entire value chain, right from the stage of pre-
production to the consumers table through appropriate
interventions.
To create employment generation opportunities for skilled and
unskilled persons, especially unemployed youth.

31
Interventions -Backwards
Baseline Survey of urban clusters to assess
demand and supply.
Organization and Promotion of Farmers
Groups/Farmer Institutions .
Measures for enhancement of production
and productivity through precision farming .
Establishing hydroponics structures,
mushroom production units, plant health
clinics, primary processing ,grading, storage
and value addition at production clusters.

32
Interventions -Forward
Establishment of collection and testing centers in
each potential cluster.
Establishment of grading, packing, processing and
storage facilities
Support of ULBs for static/mobile CA kiosks.
Support of institutions (co-ops, corporate, SPVs,
Farmers groups, Universities, CBOs) for seedling
development, INM/IPM, contract and organic farming,
GAP, capacity building)
Post harvest management, storage and transport
infrastructure
Suitable Tie-ups between production clusters/Farmers
groups and Aggregators

33
Partners in F&V
Green Tech Agri Sector Pvt. Ltd. will establish partnership with Big
commercial farms, Agrifinance companies, Food processing
companies ,Logistics companies, Retail houses and Various Farmer
Producer Organisations.

State Horticulture Missions & National Level Agencies such as SFAC,

NHRDF,NDDB,NABARD,Departments of Agriculture and Horticulture,
State Agricultural Universities, ICAR institutes.

All Metros, State capitals or any other urban centers with a

population of 1 million and above urban clusters will be identified
through out the country.

Corporate Strategic Action Plan covering end to-end interventions

in the supply chain based on comprehensive survey and
assessments.

34
Strategy and Roadmap
Goodyield Farming Ltd. will identify and select the city they
wish to take up in 2013-14 and develop the project for fruit
and vegetable supply to the city.
Perspective plan/strategic plan will be prepared based on
the Baseline survey to assess the extant vegetable supply
chain to the identified city, identify bottlenecks and
potential vegetable growing clusters, existing as well as
potential.
The project report will be formulated for each selected
urban cluster which should invariably contain information on
geography & climate, potential of vegetable development,
availability of land, SWOT analysis, and strategy for
development and plan of action proposed to be taken to
achieve goals in the identified urban cluster of the State.
Focus will be on adoption of cluster approach for production
and linking with available infrastructure to be created, for
post harvest management, processing, marketing and 35
Actions
Baseline Survey, selection of metros and cities, farmers cluster
and Tie up with FIs and Aggregators(2013-14) .
Identify the Town/City (2013-14)
Participation in Workshop on Baseline Survey, farmer cluster
and Tie up with Aggregators at Corporate office of Green Tech
Agri Sector Pvt.Ltd.(2013-14)
Prepare projects on above lines and approve Projects by BoD
by mid May 2013-14 and implement throughout India.
Organisation of farmer producer organisation /groups in each
urban clusters (2013-14).
Setting up of Green Tech Precision Farming Centres equipped
with all agri-inputs , farm credit, plant health clinic, training
and demo farms, hydroponics farms collection centre, grading
and pack house, mini-cold store(2014-17)
Setting up of Model Mushroom Production Unit(2015).
Marketing and Distribution Network(2013-17)
Consolidate bench mark data on area, production, productivity
and market arrivals of important vegetables.2013-14

36
Enables
Fast growth in organic products.
Cash and carry of organic fruits and
vegetables.
Good profits due to higher selling rates.
Changing food habits of rising middle
urban class due to rise in their income.
Modern retail outlets in urban clusters.
Government support with Foreign Direct
Investment.
Income and employment generation.

37
 Tech Precision Farming Centre in
crores
Sr Particulars Unit Rate Firs Secon Third Fourth Fifth Amount
Rs t d year year year Cr
yea year
r
1. Hydroponic 4 acre 2500/S 1.00 1.00 1.00 1.00 1.00 5.00
Structure qm
2. Plant health 0.25 25 lac/ - - 0.25 - - 0.25
clinic acre unit
3. Mushroom 0.25 100 - 1.00 - - - 1.00
Production acre lac/unit
4. Grading & 0.25 15 lac/ 0.15 - - - - 0.15
Packing acre unit
house
5. Primary 0.10 25 lac/ - - 0.25 - - 0.25
Processing acre unit
6. Cold store 0.10 25 lac/ - - 0.25 - - 0.25
6000 MT acre unit
7. Refer vans 6 3 25 lac/ 0.25 0.25 0.25 0.75
MT unit
8. Shop cum 0.25 20 lac 0.20 - - - - 0.20
office acre
9. Misc. - - 0.16 0.23 0.20 0.10 0.10 0.79 38
 B.Operating Expenses of a Green Tech
Precision Farming Centre in crores
Sr. Particulars First Secon Third Fourt Fifth Amount
year d year h year year
year
1. Lease rent 0.24 0.48 0.72 0.96 1.20 3.60
2. Agri Inputs 1.00 1.20 1.44 1.73 2.07 7.44
3. Purchase of vegetables 1.50 3.00 4.50 6.00 7.50 22.50
4 Office 0.22 0.22 0.22 0.22 0.22 1.10
5. Hydroponics structure - 0.23 0.23 0.23 0.23 0.92
6. Mushroom Production Unit - - 0.11 0.11 0.11 0.33
7. Plant health clinic - - 0.05 0.05 0.05 0.15
8. Grading &Packing 0.09 0.09 0.09 0.09 0.09 0.45
9. Primary Processing Unit - - 0.05 0.05 0.05 0.15
10. Cold store - - 0.03 0.03 0.03 0.09
11. Input Sale 0.05 0.05 0.05 0.05 0.05 0.25
12. Refer Van 0.03 0.03 0.06 0.06 0.06 0.24
13. Security 0.03 0.03 0.03 0.03 0.03 0.15
14. Electricity & Telephone 0.02 0.04 0.10 0.10 0.10 0.36
15. Misc. 0.32 0.54 0.77 0.97 1.18 3.77
16. Total B 3.50 5.91 8.46 10.69 12.98 41.50
39
 C. Total Expenses a Green Tech Precision
Farming Centre(Crores)
S Particulars First Secon Third Fourth Fifth Total
r year d year year year year amount

1. Total A 1.76 2.48 2.20 1.10 1.10 8.64

2. Total B 3.50 5.91 8.46 10.69 12.98 41.54

3. Total A+B 5.26 8.39 10.66 11.79 14.08 50.18

4. Interest 0.79 1.26 1.60 1.77 2.11 7.53

5. Depreciatio - 0.18 0.25 0.22 0.11 0.76

n
7 Total C 6.05 9.83 12.51 13.78 16.30 58.47

40
 D. Income from a Green Tech Precision
Farming Centre(Crores)
Sr Particulars First Second Third Fourth Fifth
. year year year year year
1. Sale of - 150ton 300ton 450ton 600ton
hydroponics @10000 @10000 @10000 @10000
produce 0 0 0 0
150tons/acre 1.50 3.00 4.50 6.00
2. Sale of agri 1.20 1.44 1.73 2.07 2.48
Inputs to farmers
3. Sale of - - 100ton 200ton 250ton
mushrooms @10000 @10000 @10000
25tons/unit 0 0 0
1.00 2.00 2.50
4. Sale of fruits & 1000to 2000ton 3000ton 4000ton 5000ton
vegetables n @30000 @30000 @30000 @30000
5000tons/cluster @3000 6.00 9.00 12.00 15.50
0
3.00
5. Total income 4.20 8.94 14.13 20.57 25.48
41
THANKS
As a result of new multi-
sector, multi-stakeholder
collaborations, urban and
rural authorities and their
citizens can come to better
understand their food and
ecosystem resources to
adapt to multiple challenges
and manage more resilient
food systems FAO.

42