The document discusses the production and supply chain management of fruits and vegetables from production clusters to urban centers in India. It notes that while India is the second largest producer of fresh fruits and vegetables, productivity is still below global norms. It outlines opportunities to improve production through precision farming techniques like greenhouses and hydroponics. The document proposes establishing efficient supply chain infrastructure and partnerships along the value chain to deliver safe, high quality produce to consumers in major Indian cities in a profitable and sustainable manner.

1. The Production and Supply
Chain Management from
Production Clusters to
Urban Centre
By Green Tech Agri Sector
Pvt.Ltd.
Rajender Thakur

2. 2

3. Aspect Current Expecte Overall
s size d size increas
(2008- in 2020 e(%)
09)
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

4. Rank Towns States Per-Capita
Income
1 Chandigarh Chandigarh 26, 710
(UT)
2 Panaji Goa 26,075
3 Delhi Delhi 24, 141
4 Valparai Tamilnadu 23, 772
5 Greater Maharashtra 23, 109
Mumbai
6 Pune Maharashtra 22, 817
7 Ludhiana Punjab 22, 178
8 Chennai Tamilnadu 21, 885
9 Shimla Himachal 21, 348
Pradesh
10 Jalandhar Punjab 21, 254
4

5. 5

6. Aspects) Current size Expected size in Overall
(2008-09 2020 increase(%)
Retail Rs. 17,497 billion Rs. 53,517 billion 206
Food retail Rs. 10,673 billion Rs. 32,696 billion 206
Organised food Rs. 150 billion Rs. 620 billion 313
retail
6

7. 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. 8

9. 9

10. F&V PRODUCTION
221 MMT
146MMT 75MMT
Potato Okra Banana Mango
Tomato Brinjal Papaya Guava
Cauliflower Pineapple Grapes
Beans
Cabbage Lime Apple
Onion Gourds Lemon Litchi
Peas Leafy Mosambi Orange
Cucumber Ginger Sapota Pome
Garlic Tubers Coconut granate
10

11. 11

12. Commodity Market arrival in Average Price/ton
tons
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

13. 13

14. 14

15. 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
pickles. 15

16. FRUIT VEGETABLE
S S
16

17. VEGETABLES FRUITS
17

18. COUNTRY AREA (ha) SOURCE
China (2010) 27,60,000 Yang, 2011
Korea (2009) 57,444 Lee, 2011
Spain 52,170 Euro Stat, 2010
Japan 49,049 MAFF, 2011
Italy 26,500 Euro Stat, 2010
Mexico 11,759 SAGARPA, 2010
Netherlands 89600 Euro Stat 2011
France 9,620 Euro Stat, 2005
United 8,425 US Census Horti
States Spec 2010
India 30,000 NHB 2011
18

19. Year Area in hectares Major states-Maharashtra,
2005-06 451.82 Karnataka, Tamil Nadu, Andhra
2006-07 1440.47 Pradesh, Gujarat, Himachal
2007-08 4796.55 Pradesh, Uttrakhand, Punjab
2008-09 7086.81 and Haryana has already made
2009-10 6634.74 notable headway. Rajasthan,
2010-11 5536.47 Orissa and some northeastern
2011-12 22528.25 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.
19

20. Sr. No. Name of Crop Production(Tons/Ha)
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
20

21. 21

22. 22

23. 23

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

25.  Favorable government vision.
 WTO offering global opportunities.
 Price –premiums in different markets.
 Export opportunities in new product/market.
 USA, Europe and Japan are rising markets.
 Branding offers new opportunities for differentiation.
 Rising demand for organic products.
 Big retail stores/chains opening up.
 New developments in post harvest technologies.
 New products, production, PHM technologies .
 Private sector keen to join premium F &V value chain.
25

26. 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 Management Establishing collection and processing centers 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

27.  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

28.  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

29.  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 India’s 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 these vegetables comes very costly in the Indian market.
29

30.  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).
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31.  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

32.  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

33.  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

34.  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

35.  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 export
35

36.  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

37.  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

38. Sr Particulars Unit Rate First Second Third Fourth Fifth Amount
Rs year year year year year Cr
1. Hydroponic 4 acre 2500/Sq 1.00 1.00 1.00 1.00 1.00 5.00
Structure m
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 house acre unit
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
10. Grand Total A - - 1.76 2.48 2.20 1.10 1.10 8.64
38

39. Sr. Particulars First Second Third Fourth Fifth Amount
year year 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

40. Sr Particulars First Second Third Fourth Fifth Total
year 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. Depreciation - 0.18 0.25 0.22 0.11 0.76
7 Total C 6.05 9.83 12.51 13.78 16.30 58.47
40

41. Sr Particulars First Second Third Fourth Fifth year
. year year year year
1. Sale of hydroponics - 150ton 300ton 450ton 600ton
produce @100000 @100000 @100000 @100000
150tons/acre 1.50 3.00 4.50 6.00
2. Sale of agri Inputs 1.20 1.44 1.73 2.07 2.48
to farmers
3. Sale of mushrooms - - 100ton 200ton 250ton
25tons/unit @100000 @100000 @100000
1.00 2.00 2.50
4. Sale of fruits & 1000ton 2000ton 3000ton 4000ton 5000ton
vegetables @30000 @30000 @30000 @30000 @30000
5000tons/cluster 3.00 6.00 9.00 12.00 15.50
5. Total income 4.20 8.94 14.13 20.57 25.48
6. Total costs 6.05 9.83 12.51 13.78 16.30
7. Net Profit D-C -1.85 -0.89 1.62 6.79 9.18
41

42. 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.
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